Gryphon Capital Income Trust

2 Jul 2019

Gamma Advisory

Gamma Wealth Group is offering clients the opportunity to invest in the listed investment trust (LIT) – Gryphon Capital Income Trust (ASX Code: GCI).  It is currently trading on the ASX at $2.04 however existing unitholders and new unitholders will be able to subscribe for additional units at $2.00.   GCI invests in a portfolio of Australian Debt Securities and Asset Backed Securities (ABS), including Residential Mortgage – Backed Securities (RMBS).

Key features of this investment:

  • Experienced investment team managing over $1.9 billion with no loan defaults since inception.
  • Offers an opportunity for exposure to a credit market typically not accessible by retail investors.
  • This investment will provide stable monthly cash returns with lower capital volatility.
  • 86% of their current loans are BB rated or above.
  • Target return to be 3.50% over the cash rate (net of fees). The return, post listing in May 2018, has been 5.33% per annum.
  • Returns to be floating and move in line with the cash rate.
  • Minimum Investment Size – $1,000
  • Issue Size – up to $108.03m
  • Subscription Price – $2.00
  • Expected Listing Date (for new units): 1st August 2019

ASIC has published guidance on listed investment trusts on its MoneySmart website which may be relevant to your consideration of the Offer. You can find this guidance by searching “listed investment trust” at www.moneysmart.gov.au

This issue has been recommended by Bond Adviser.

https://image.portfolioaccess.nab.com.au/lib/fe941274746d047877/m/1/6d9af656-0a85-40bc-a774-c0f41bf71a03.pdf

A copy of the Product Disclosure Statement (PDS) can be found by clicking on below:

http://image.portfolioaccess.nab.com.au/lib/fe941274746d047877/m/1/GCI+-+PDS.pdf

Australian retail investors have typically had limited exposure to this asset class and this investment may be suitable for clients requiring income, lower volatility and looking for alternatives outside their bonds, term deposits and hybrids.  An exposure to this investment may be part of a diversified investment portfolio.

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