I like to read financials at this time of year to gauge where others in my industry are positioned.
The focus of the GPS financials was that, yet again, we delivered a sound return with no defaults.
I was quite concerned to see in a set of financials from another operator a focus on their rate of growth in funds under management. Defaults and losses were disguised in jargon and moved to the notes.
Perhaps I am getting grumpier and more set in my ways, but my view remains that when the property market is moving into the next phase, it is a time to keep it tight and focus on the fundamentals of prudential management.
This view has allowed me to still be operating after a couple of rounds of the property merry-go-round. There is always money to be made if you are correctly positioned and properly focused and resourced.
It should be well known that GPS is pretty comfortable with where we are at from a funds under management perspective and we are only looking at achieving organic growth. This position creates its own issues.
A fast growing funds book can, and in fact requires, a constant level of new investment. They face the issue that if growth of new investment stops, they have a greater prospect of not being able to meet ongoing funding requirements.
A mature funds portfolio, like GPS, faces the issue that there are more limited times when they can readily accept new investments. The primary focus is on maintaining usage rates and looking after what they have already got.
While GPS will always work towards accepting new investment from existing investors and their referrals, there are times when it is easier for us to do so. October 2017 will be one of those times.
Over the many years GPS has been operating we have received great support from our investors or “help us to help you”.
If you are looking at increasing your investment amount with GPS, or have friends, family or acquaintances who may be interested in investing, then October is the time.
Thank you for all the kind responses to the GPS financials. It takes a lot of effort to maintain the GPS record. We really appreciate the positive feedback and acknowledgement.