We hope you all had (or are still having!) an amazing time celebrating the silly season with your family and friends.
The GPS team was back in the office as of the 3rd Jan, so if you did happen to need us you can contact us as per normal on the phone or via email.
We hinted at the end of the last year that changes were going to come into play in early 2023, and we are not ones to disappoint.
You will be receiving notice via your preferred method (post or email) of a rate rise coming into play from Feb 1st for the GPS Invest Pooled Fund and the GPS Invest Private Fund! In fact, it may have already beat this newsletter to your attention.
For those that haven’t received it yet, I am going to leave a bit of suspense and let the letter tell you what the plan is.
GPS has always been about doing things in a strategic and well thought out manner to ensure we continue to act in your best interest, and produce sustainable results.
When rates fell, GPS was able to hold our rates higher for longer, thanks to the relationships we have with our borrowers. At that time, it worked in our investors favour that we do not adjust borrower rates mid term.
Now the cycle works the same way in reverse. To protect our loyal borrowers, builders and the integrity of the projects, GPS has not increased borrower rates mid term. This means that, while those projects are being completed, our investor rates have remained stable. Those borrowers appreciate the stability and are more likely to bring their next projects to GPS.
As new projects begin with a higher borrower rate, we are then able to pass on an increase through our distribution rates in a sustainable manner.
That is what you will see from Feb 1st. An increase based on a book of loans that are able to support it. Not a reactionary response to external factors that would affect the stability of the change.
If you have been with GPS for a while you will also know that we pride ourselves on consistency. We aren’t ones to make regular changes that disrupt your ability to make meaningful plans.
We appreciate the support that each of you has shown towards GPS in the last 12 months. We hope you enjoy your 2023 and we look forward to what comes next!
Richard Woodhead
Managing Director
