The Merx Wholesale 1 PIE Trust: a distinctive opportunity to invest in loans to the SME and property sectors, secured by business and property assets.

This fund is for wholesale investors† looking for an option to complement a diversified portfolio and aim for stable, long-term growth. If your goal is to build wealth for retirement and support your family’s financial independence, this fund is designed to create income for life.

With a focus on flexibility and efficiency, the fund has been built on the following core principles:

• Alignment of interests: Experienced, professional management value and prioritise aligned interests and personally invest alongside their investor partners, sharing the same risks and potential returns with investor partners.
• Target Net Investor Return* of 9% to 11% p.a. (after fees/pre-tax): The average Net Distribution pre-tax (annualised) to unit holders is over 16%** Since inception in June 2022, the Wholesale 1 PIE Trust has delivered Net Returns of 37.19%.*** Figures as at 30 June 2024.
• Tax efficiency: With the PIE structure, the tax rate on returns is capped at a maximum of 28%, which allows investors on higher marginal tax rates to keep more of their investment returns. Tax compliance is also streamlined, as tax on investment returns is paid at source by the PIE.
• Diversification within a single-asset class: By investing in a diverse range of loans to unrelated borrowers and risk profiles, the Merx Wholesale 1 PIE Trust reduces concentration risk within the single-asset class portfolio while also maintaining an element of liquidity. Investors can withdraw reinvested returns without an exit fee and redeem units with a six-month notice. 
• Robust security measures: Assets are secured by mortgages over local property and/or security over business assets. At least 50% of the portfolio must be secured by first mortgages – with their current exposures being more than 70% first-mortgage security. Exposure to second mortgages is also limited to 40% of the total portfolio.

Anchoring the fund’s investment strategy is a management team that combines over 20 years of professional experience in banking, finance, and law. With the Merx Wholesale 1 PIE Trust, they are bringing their experience and expertise together to build the fund they want to be invested in for decades to come.

To find out more about the Merx Wholesale 1 PIE Trust, the management team and more, visit: https://merx.co.nz/invest-with-us/

Learn more about Merx

• Creating income for life | Investing with Merx
• Investor’s journey | Merx Director, Andrew Dunning
• Wholesale investor: What does it mean to be one?
• Building an investment portfolio for the long term
• Why diversification matters
• Why we avoid related party lending
• We’re clarifying the rules of the Merx Wholesale 1 PIE Trust

†Investors must qualify as Wholesale Investors as that term is defined in sections 3(2)(a) – (c) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act 2013 (“FMCA”). The Fund is not suitable for retail investors.

*Target returns are not guaranteed and are based on a number of assumptions; actual results may differ significantly. Past performance is not necessarily an indicator of future performance: Investors should conduct their own due diligence on the information provided before investing.

**Returns based on an actual company investor account with net returns re-invested monthly.

***Returns since Inception is based on an actual investor account with net returns reinvested monthly. 

Past performance is not a guarantee of future performance. The fund was established on 30 June 2022 and made its first investments in September 2022.