Potential to Grow: Gryphon Capital Income Trust (ASX: GCI) is an independent asset management firm focused on secured credit investments in fixed income markets in both Europe and Australia region. It provides a unique opportunity for investors to access a portfolio of secured wholesale bonds in an ASX listed vehicle managed by a specialist fund manager. The group has recently listed on Australian Securities Exchange platform, under the code of GCI after it received a decent response from the market on IPO event. Through this event, the trust raised $175.3 million new units by the issue of 87,650,000 ordinary units at an issue price of $2.00 per ordinary units. Following this, Loannet Pty Lt, HSBC Custody Nominees (Australia) Limited, and Navigator Australia Ltd, became the top three holders of the group by holding 14.261%, 7.153%, and 5.253%, respectively of total issued securities. The group had pro forma cash reserve of $170.04 Mn as at May 21, 2018. The funding position provides a capital base for the future as the Company continues to focus on generating good returns for its investors.

The group has now focussed on capital preservation and the delivery of a target cash return of 3.50% above the RBA cash rate i.e. 5.00% per annum. The cash distributions will be paid on monthly basis. The total return may rise, or fall based on performance in the underlying Trust investments and movements in the RBA Cash Rate. Since inception, the group has generated Investment Grade Securitised strategy’s return of 5.31 per cent which is above the targeted return of 4.55 percent while secured Opportunities strategy’s return contracted to 6.93 per cent as compared to the targeted return of 6.99 per cent.



Historical performance of the GCI Australian Fixed Income Strategies (Source: Company Reports)

Currently, the stock is trading at the price of $ 2.00 (as at May 30, 2018), which is the same price at which capital was raised during the IPO. However, the group might have the potential to grow as some investors seek their interest in the less volatile market such as fixed interest securities not correlated to traditional asset classes such as equities. This looks to be a play to watch.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.