GFC was the catalyst for GPS to seriously rethink where it was and what it wanted to be.
While GPS had previously been a Responsible Entity it outsourced this role as part of a wider policy of keeping key staff to a minimum and outsourcing specific aspects of the business to the best providers, thereby improving our available skills base.
The vulnerability of having an external Responsible Entity was exposed by the GFC and the failure of so many operators. A decision was made by GPS to refocus the business and to decrease the operational risk.
Our review indicated that the core strength of GPS was its ability to source and tightly manage construction and development loans in South East Queensland.
Several changes of strategy were initiated and are currently in the process of being implemented. The major change was to obtain our own Australian Financial Services Licence and mortgage funds so that we could have better control over our destiny. GPS Investment Fund Ltd was incorporated and was granted AFSL 383080. It now operates the GPS Invest Select Fund (ARSN 149257401) and the GPS Invest Pooled Fund (ARSN 149257410).
The key goal is to grow these two funds to a sustainable level so that GPS always has the availability of mortgage funds which are willing to lend on prudential loans. We are currently on track to achieve the required level of funding by the end of 2012. The focus for GPS Investment Fund will then be on the tight management of both the funds and more importantly to look after the interests of our loyal and long-serving Investors.
Thegrowth area for GPS will be in our loan sourcing and management operations. We have now secured an agreement to provide product and services for a large mortgage fund. We continue to work towards developing further agreements with other mortgage funds and financial institutions.
Our aim is to continue to be the best provider of loan product and management services for construction and development lending in South East Queensland, so that nationally based mortgage funds and financial institutions engage GPS to source and manage their exposure to that market.
GPS Investment Fund Ltd and its mortgage funds will benefit from the greater market share held by GPS as it enables us to be even more selective of the loans that are accepted, and assists us in balancing the funds cash flows.
The many other aspects of the GPS business which have contributed to our long history, such as being owner-managed, having a stable, skilled and experienced staff and outsourcing key aspects of the business such as legal, valuation, quantity surveying and compliance to industry leaders will continue.