Gryphon Capital Income Trust

Gryphon Capital Income Trust

One Managed Investment Funds Limited as the Responsible Entity is seeking to raise up to $350 million via the ASX listing of Gryphon Capital Income Trust (Trust) and has appointed Gryphon Capital Investments Pty Ltd as the Manager (GCI).

GCI is a specialist fixed income manager with significant experience in the Australian and international Residential Mortgage Backed Securities (RMBS) & Asset Backed Securities (ABS) market. Although this is the first time GCI has managed the portfolio of an ASX-listed managed investment scheme, GCI’s experience managing in excess of $1.7 billion in segregated accounts on behalf of institutional investors, will provide retail investors the opportunity to gain exposure to this institutional asset class managed by GCI.

The Investment Strategy reflects the key tenets of the Manager's investment philosophy of capital preservation and superior investment returns. The investment selection processes, policies and risk protocols employed by the Manager in the construction of the Trust's Portfolio will be the same as those it currently employs on behalf of its institutional clients. Investors’ capital and investment returns are not guaranteed.

An investment in the Trust provides access to an important and significant sector of the fixed interest asset class (RMBS and ABS). The Trust therefore provides asset class diversification and is complementary to other fixed income securities.

In addition to the attractive target returns of RBA + 3.50%, investors can look to the multiple layers of protection afforded them by investing in a diversified portfolio of secured bonds. The protections within the RMBS process mean that there has never been a principal loss on any Australian rated RMBS in Australia.

This investment may be suitable for investors looking for monthly income and diversification of their income portfolio beyond traditional cash, bond and hybrid investments.

Key highlights

  • Ability to secure a Broker Firm allocation in the Gryphon Capital Income Trust
  • Issue price of $2.00 per unit equal to the NAV at issue
  • Monthly cash distributions equal to the RBA cash rate + 3.50% i.e. approximately 5.00% p.a.
  • Capital preservation along with monthly cash income that will move with changes in interest rates
  • Income supported by a professionally managed diversified portfolio of RMBS and ABS
  • Deep experience and expertise that until now has only been available to institutional investors
  • Portfolio diversification, offering stable yields, secured debt exposure and complementary to other fixed interest investments
  • Base management fees comparable to fees charged to wholesale investors for similar products 
  • Expected low capital volatility
  • ASX listed liquidity

Investors should review each of the Fund’s Product Disclosure Statement dated 6 March 2018 and Supplementary Product Disclosure Statement dated 30 April 2018 (together the PDS) in their entirety before deciding to make an application. If, after reading the PDS, you are unclear in relation to any matter or if you have any questions about the Trust, you should contact your accounting, tax, financial or other professional advisor.

Should you have any queries, please contact us on [email protected] or call us on (02) 8277 0000.

Key Documents