The Merx Wholesale 1 PIE Trust
Managed Investment Scheme
†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. 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.
***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.
The Merx Wholesale 1 PIE Trust invests in loans to the SME and property sectors, secured by local business and property assets.
- Management are personally invested in the fund and have the same risks and potential returns as investors.
- The fund is PIE Tax compliant, offering tax efficiency for eligible investors.
- Fund assets are secured by mortgages over local property and /or security over business assets.
- The fund Invests in a diverse range of loans to a range of unrelated borrowers and risk profiles, to reduce concentration risk within the portfolio.
- The Target Net Investor Return is 9% to 11% (after fees / pre-tax)*.
The Merx Wholesale 1 PIE Trust offers a refreshing proposition for wholesale investors†. Management value and prioritise aligned interests and personally invest alongside their investor partners: management have the same risks and potential rewards as investors.
Thanks to the PIE regime, the Merx Wholesale 1 PIE Fund is also tax-efficient for many investor partners. It can be particularly beneficial for Trust investors or investors in higher marginal tax brackets, as the tax rate on returns is capped at a maximum of 28%.
Diversification and flexibility are key features. The fund invests in secured loans to a broad range of business and property industry borrowers and risk profiles, secured by mortgages over local property and/ or business assets.
This diversification reduces concentration risk and the impact of any single underperforming loan on the overall portfolio. It also provides for liquidity in the fund – multiple loans repaying and being funded at different times provides available cash in the fund to give investors flexibility in investment withdrawal.
What’s more, the fund offers flexibility by allowing investors to regularly withdraw reinvested returns without an exit fee, and to redeem units with six-months notice.
The Merx Wholesale 1 PIE Trust has a 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. It’s a compelling proposition for wholesale investors to consider.
Anchoring the fund’s investment strategy is a management team that combines over 20 years of professional experience in banking, finance, and law. To find out more about the Merx Wholesale 1 PIE Trust, the management team and more, visit merx.co.nz/invest-with-us.
NEXT STEPS - HOW TO INVEST
- Review the Information brochure.
- Complete your application via Syndex.
- The manager will then be in contact to finalise your application.
We look forward to having you partner with us.
