Listed Investment Trust
One Managed Investment Funds Limited as the Responsible Entity is seeking to raise up to $350 million(1) via the ASX listing of Gryphon Capital Income Trust (Trust)(2) and has appointed Gryphon Capital Investments 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. Managing in excess of $1.7 billion in segregated accounts on behalf of institutional investors, GCI's management of the Trust will provide retail investors the opportunity to gain exposure to this institutional asset class.
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.
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 bond in Australia.(3)
This investment may be suitable for investors looking for monthly income and diversification of their income portfolio beyond traditional cash, bond and hybrid investments.
An explanation of fixed income securities and the different types available, including Asset Backed Securities (ABS) and Residential Mortgage Backed Securities (RMBS).
Key highlights of this offer
- 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(4) equal to the RBA cash rate + 3.50% i.e. approximately 5.00% p.a. (5)
- 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(6)
- ASX listed liquidity(7)
Issuer: One Managed Investment Funds Limited
Transaction: Listed Investment Trust
Morgans Role: Joint Arranger and Lead Manager
Offer Size: $350 million
Offer Opens: 20 March 2018
Morgans Offer Closes: 27 April 2018
1. The Offer size may be more or less than $350 million.
2. Morgans will receive fees for its role.
3. S&P Performance Watch June 2017.
4. The first income distribution is scheduled to be paid following the month ending 30 June 2018.
5. The target distribution rate is set at the RBA cash rate + 3.50% and will move in line with interest rate levels.
6. The NAV will reflect the value of the loan portfolio assets and move accordingly.
7. Application will be made to list Gryphon Capital Income Trust on ASX.
If you have any questions about the Gryphon Capital Income Trust Offer, please contact your Morgans adviser, call 134 226 or find your nearest office here.
Gryphon Capital Income Trust units are being offered only in Australia and the PDS will only constitute an offer to a person receiving it in Australia. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the PDS (including an electronic copy) in jurisdictions outside Australia may be restricted by law.