Gryphon Capital fund starts trading on ASX
Gryphon Capital Investments (GCI) has announced that its Gryphon Capital Income Trust Fund, which has raised $175.3 million, will start trading on the Australian Securities Exchange (ASX) under the code GCI.
The firm said the fund would offer Australian investors access to a relatively low-risk investment strategy, which would include a portfolio of residential mortgage-backed securities (RMBS) and asset-backed securities (ABS), as well as secured wholesale bonds.
The fund’s current target return is five per cent per annum, equivalent to the Reserve Bank of Australia (RBA) cash rate plus 1.5 per cent with monthly floating-rate distributions.
Additionally, every proposed RMBS investment was stressed tested to withstand the stress scenario from the Australian Prudential Regulation Authority (APRA) that is used by lenders mortgage insurers in calculating probable maximum loss which corresponded to a 1-in-200-year event.
GCI’s co-founder and chief investment officer, Ashely Burtenshaw, said this type of exposure was of a significant importance in portfolios, which were not correlated to traditional asset classes such as equities.
GCI’s adviser and partner at Seed Partnerships, Chris Donohoe, added: “We are really pleased to be able to bring a listed investment trust to investors that offers exposure to an alternative fixed income strategy.”
“The quality of the investment managers, the robustness of their processes and track record, made this a very compelling offer and contributed to this excellent result.”
Morgans and NAB were joint arrangers and lead managers of the transaction.
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