Key Highlights

  • Gryphon Capital Income Trust paid 1.386 cents per unit on 9 November 2026 for October.
  • The distribution was unfranked and paid in cash, as the trust has no reinvestment plan.
  • The portfolio is floating-rate, holding residential Mortgage and asset-backed securities.
  • Monthly timing makes it a regular feature of the ASX Dividend calendar.

Gryphon Capital Income Trust (ASX:GCI) paid an October distribution of 1.386 cents per unit on 9 November 2026, and its monthly timetable makes it a regular fixture on the ASX dividend calendar. The trust first announced an estimate on 26 October and confirmed the amount in an updated Appendix 3A.1 on 2 November. Units went ex-distribution on 29 October, with a Record Date of 30 October. The distribution is unfranked and there is no reinvestment plan, so it is paid in cash. The next monthly cycle, covering November, is expected to follow a similar pattern, although its dates and amount have not yet been announced.

The October Distribution Timetable

According to the updated Appendix 3A.1 lodged on 2 November 2026, the distribution was AUD 0.01386 per unit for the one-month period ending 31 October 2026. The ex date was 29 October 2026, the record date was 30 October 2026 and the payment date was 9 November 2026. The update was lodged to confirm the estimated amount announced on 26 October.

The notice states the distribution is 100 per cent unfranked, with no conduit foreign income component. It also states that the trust does not have a securities plan for distributions, meaning there is no distribution reinvestment option and holders receive cash.

The October amount compared with 1.31 cents per unit for September, as reported in the trust's September 2026 monthly Investment update. Monthly amounts can move because they reflect the income earned by the portfolio in each period. The amount is set each month by the Responsible Entity once income for the period is known, which is why an estimate is released first and confirmed later.

Why Monthly Credit Trust Payments Change

The trust invests mainly in the local securitisation market, through public securitised bonds and private Warehouse facilities. Most of these instruments pay floating-rate coupons that reset in line with short-term interest rates. The September update recorded an Interest Rate duration of just 0.04 years, which means the portfolio's income responds quickly to changes in the cash rate.

The trust's stated target is a return of the RBA cash rate plus 3.50 per cent a year. The update used an RBA cash rate of 4.60 per cent, set at the Reserve Bank's 29 September meeting; the Reserve Bank then lifted the cash rate to 4.85 per cent on 3 November. When the cash rate rises, coupons on floating-rate notes generally reset higher, which can increase the income available to distribute. The trust says its distributions are fully funded from net investment income, excluding unrealised gains and losses.

What Sits Inside the Portfolio

At the end of September, the trust reported net tangible Assets of $1,361.7 million, or $2.01 per unit. It held 189 bonds, backed by 91,024 underlying mortgage loans in its residential mortgage-backed securities.

Residential mortgage-backed securities made up 75 per cent of the portfolio, split between 51 per cent prime and 24 per cent non-conforming. Asset-backed securities accounted for 21 per cent, comprising 11 per cent auto loans, 6 per cent consumer loans and 4 per cent small Business loans. Cash made up 2.7 per cent.

By credit rating, 28.8 per cent of holdings were rated A and another 28.8 per cent BBB, with 6.4 per cent rated AA and 2.3 per cent AAA. Below investment grade, 20.8 per cent was rated BB and 6.3 per cent B, with 3.5 per cent not rated. Around two-thirds of the portfolio was therefore rated BBB or higher.

Arrears and Credit Quality

For income investors, the key risk in a credit trust is borrowers falling behind. Across the mortgage pools, loans more than 90 days in arrears were 0.89 per cent, made up of 0.66 per cent for prime loans and 1.36 per cent for non-conforming loans. The average indexed loan-to-value ratio was 64 per cent, and average credit enhancement was 3.4 per cent. The largest exposure to any single postcode in the mortgage pools was 1.8 per cent.

In the asset-backed pools, 90-day arrears were 0.74 per cent for small business loans, 0.19 per cent for auto loans and 0.13 per cent for consumer loans. Credit enhancement, which absorbs losses before they reach the trust's notes, ranged from 3.7 per cent for small business to 11.3 per cent for consumer loans.

The manager's commentary pointed to softer housing conditions, higher interest rates and more cautious investor sentiment, and argued these conditions reinforce the need for disciplined credit assessment, independent valuation and transparent reporting.

Manager, Fees and Structure

The trust is managed by Barings Asset-Based Finance Australia, formerly known as Gryphon Capital Investments, which is the asset-based finance platform of Barings in Australia. Barings reports more than US$502 billion in assets under management globally. The responsible entity is One Managed Investment Funds Limited. The management fee is 0.72 per cent a year, including GST net of reduced input tax credits, and there is no performance fee.

The trust values both its public and private holdings through a single external valuation agent. Its documents also note that the net Tangible Asset value has fallen by more than 1 per cent on several occasions and that capital is not guaranteed.

What Comes Next on the Calendar

The November distribution period ends on 30 November 2026. In the October cycle, the estimate was announced three days before the ex date, the ex and record dates fell at the end of the month and payment followed about ten days later. The trust has not yet announced dates for November, so investors should check for a new Appendix 3A.1 in the second half of the month.

Key Takeaways

Gryphon Capital Income Trust paid 1.386 cents per unit on 9 November 2026 for October, following an ex date of 29 October and a record date of 30 October. The distribution was unfranked and paid in cash, as the trust has no reinvestment plan. Its floating-rate portfolio of residential mortgage and asset-backed securities, with 90-day mortgage arrears of 0.89 per cent, links monthly income closely to the cash rate and to borrower performance. For investors tracking the ASX dividend calendar, the next step is the November estimate, due ahead of the month-end record date.