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Question asked 21/06/2025

Fixed Income Products

Hello James and Team, I was interested to see that you are buying DN1 for the MM income portfolio. I see that it is "powered by Realm". Your comments on REALM as an asset manager would be appreciated. Also could you comment on Gryphon Capital and Real Asset Management (RAM) who offer similar products. I recall that in a Webinar a couple of months ago James spoke favourably about Gryphon. Finally, I see that LaTrobe are releasing a product shortly (LF1). Your comments on LaTrobe would also be appreciated. I understand that your commentary is not financial advice. Kind regards, Lee

Answer

Hi William,

REALM: We think they are a good, conservative Australian investment manager specialising in credit and fixed-income strategies, managing over $8 billion, running several unlisted strategies. We think their fee structure on DN1 (0.5%) is about right for the management expertise they bring to the table, and they have a solid track record.
Gryphon Capital: The Gryphon Capital Income Trust (GCI) pays monthly distributions of ~1.3c putting it on attractive yield of ~8%. We still like GC1 and it could have easily been put in place of DN1. The reason DN1 got the nod is becuase it has a call date, or an end date, where the security gets redeemed, and this will further reduce the risk of the trust trading at a discount to NTA.
Real Asset Management (RAM): Is not a manager we know well, have not met them, so don’t have any real value add here on that front. They run lots of different strategies here and in Asia with different structurs from unlisted funds to Managed Discretionary Accounts (MDA’s). We’re always a bit weary of an MDA manager who also has investment products as they may have a tendancy to populate their own portfolios with their own investment products.
LaTrobe: The La Trobe Private Credit Fund (LF1) is a newly launched, yet to be listed (lists on the 27th June), ASX investment trust. We think the return hurdle is too low for the type of investments held, and the fee structure is too high, equating to over 2%.

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Gryphon Capital Income Trust (GCI)

LAST UPDATED 20/06/2025 14:13

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