Generating Investor Returns: Our Portfolio Strategy

The Merx Wholesale 1 Pie Trust is a debt fund designed by investors for investors. The portfolio strategy and approach have been developed and refined over the years through our own investing experience—testing theories and structures with our own funds.

We first started in the invoice finance sector but found that while high-yielding, it was challenging to build a portfolio of decent scale in that space. Alongside this, our network had been referring general business and property loan opportunities to us. It was a natural pivot to focus on building and maintaining this as the core of our portfolio. We moved into business and property development finance and began amassing considerable experience in assessing lending scenarios and client objectives and managing the balance between risk and return.

In 2022, after 10 years of refining our lending and investment model, we opened the opportunity to investor partners: the Merx Wholesale 1 Pie Trust debt fund was born.

Our portfolio strategy is to maintain an optimal mix of lower and higher-yielding investments to balance safety and enhancing returns. As the graph below illustrates, a large proportion of the total portfolio is comprised of low-yielding, low-risk investments (first mortgage secured), which generates a good base to work with. This is then topped up by high-yielding short-term investments (second mortgage and business asset secured), which turn over frequently and boost returns.

Loan Portfolio Composition |  Spread of Loans
31 March 2024

 
Loan Portfolio Value by Security Type
31 March 2024

To date, this strategy has delivered healthy returns for investors* and supported our ability to help business owners and property owners realise their plans with a short-term injection of funds.

To better understand the ‘assets’ the fund invests in – in our case, the loans Merx makes to business owners and property developers – take a look at our recent article on Managing Risk and Reward, and we welcome you to click here to view examples of finance solutions we have implemented in the first quarter of 2024.

Like to find out more?

We welcome you to get in touch. Contact the Merx Wholesale 1 PIE Fund management team here.

*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.

Note: This article is intended to provide general information and does not constitute financial advice. We recommend you speak with a financial adviser for advice tailored to your individual circumstances. Potential investors with Merx 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 (“FMCA”). The Trust is not suitable for retail investors.

32.51

%

Returns Since Inception

As at 31 March 2024. Returns based on an actual company investor account with net returns re-invested monthly. Past performance is not a guarantee of future performance. The fund was established 30 June 2022 and made its first investments in September 2022.

Why Invest with Merx

About the Merx Wholesale 1 PIE Trust: Structure, principles: management and more

Comments from Merx Investors

I have enjoyed investing with Merx and learnt a lot through the process too. Merx have been very transparent with what they do and the communication has been consistent. Wouldn’t be a testimonial without mentioning the returns too, thanks for those. Looking forward to being a part of the journey for years to come.

Luke

There's a lot to be said for a fund where the managers invest alongside their investors. It's a real partnership where the interests of investors are prioritised. The returns to date have been great, the unit structure gives me the flexibility I want, and I've been really impressed with the communication.

Aaron

I've been impressed by how Merx looks after their investors - from how the fund is structured for redemption, reinvestment, and tax efficiency - to the communication and care in understanding my investment goals. It makes a difference - investing alongside managers who are also invested in the fund.

John

Aligned Interests

Aligned interests is a core principle of the Merx Wholesale 1 PIE Fund. As the Trust’s management team, we personally invest alongside our investor partners. We have the same risks and potential returns as our investors.

Building an investment portfolio for the long term

Investor's Journey: Merx Director,
Andrew Dunning

The role of economic cycles in investment

Get the detail – fund description, management, fees, risks and more. Request the Merx Wholesale 1 PIE Trust Investor Brochure here.
Request the Merx Wholesale 1 PIE Trust Investor Application form here. Note: the fund is not suitable for retail investors.

Merx Wholesale 1 PIE Trust Returns

Year 1 actual net return (on company investor portfolio reinvesting)

20.13%

 

Average monthly distribution (annualized)

17.32%

 

Returns since inception

32.51%

As at 31 March 2024. Returns based on an actual company investor account with net returns re-invested monthly. The fund was established 30 June 2022 and made its first investments in September 2022. Past performance is not a guarantee of future performance.

Like to find out more?

Book
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*Returns are net actual returns distributed to investors (annualized) – net of all fees and costs before tax. The fund was established 30 June 2022 and made its first investments in September 2022. Past performance is not a guarantee of future performance.

Investor Brochure

Important information for investors

Investment in the Trust is open only to wholesale investors as set out in schedule 1, clauses 3(2)(a)-(c) and 3(3)(a) (inclusive), or persons who are otherwise not required to receive disclosure under Part 3, of the Financial Markets Conduct Act 2013 (“FMCA”).

Investor Application

Important information for investors

Investment in the Trust is open only to wholesale investors as set out in schedule 1, clauses 3(2)(a)-(c) and 3(3)(a) (inclusive), or persons who are otherwise not required to receive disclosure under Part 3, of the Financial Markets Conduct Act 2013 (“FMCA”).