Merx Wholesale 1 PIE Fund: Investing alongside our investors

As long time investors ourselves, some time ago we started exploring the ‘ideal’ debt fund structure – the kind of fund that we would want to be invested in now, and in the years to come for retirement. In addition to the obvious – management by experienced hands - we agreed that we’d want a debt fund that:

• Prioritised aligned interests: A debt fund where decisions are made in the interests of all parties, achieved by a fund structure where managers invest alongside investors.
• Delivers diversification within a single asset class: A debt fund that invests in a diverse range of loans to a range of unrelated borrowers and risk profiles across the business and property sectors, to reduce concentration risk within the portfolio.
• Offers flexibility: A fund that recognises that investor needs and circumstances can change, and provides the ability to enter and exit efficiently.
• Provides tax efficiency: Using the PIE structure, a fund that can deliver tax advantages and simplified tax compliance.

After surveying the market and finding that no other fund offered all four points, we decided to bring that fund structure to life ourselves: the Merx Wholesale 1 PIE Trust.

Merx has provided over $150 million in loans since we started lending to the business sector, and demand for capital continues to grow. Off the back of that demand, the Merx Wholesale 1 PIE Trust has delivered strong returns for our wholesale investors: our Target Net Return is 9 to 11% p.a., and since launching in June 2022, the Net Return to investors has been over 15%*. It’s a compelling proposition for wholesale investors to consider, and we’re now introducing it to a broader network of financial advisers to explore the potential for their clients.

An Info Pack for Investment Advisers is now available here. And in the meantime, here’s a summary of what the fund offers.

*Target returns are not guaranteed and are based on a number of assumptions; actual results may differ significantly. The Merx Wholesale 1 PIE Trust launched in June 2022; annual returns will be available from July 2023. Further, past performance is not necessarily an indicator of future performance: Investors should conduct their own due diligence on the information provided before investing.

Merx Wholesale 1 PIE Trust | The fund at a glance