Learning from Losses
Investors should always want to understand how a fund manager views and handles losses. It’s just as important as how the fund manager approaches growth opportunities.
As investors and fund managers, at Merx we have developed a very cautious approach to risk; you might say we have an “allergy to losses”.
Losses at Merx have been rare—very rare. In fact, in our 11 years of lending experience and over $200 million in funds advanced, losses total less than $75,000. That’s losses of 0.04 percent of lending. And no losses in the debt fund.
While rare and early in our lending journey, the losses we experienced significantly impacted our business – our lending process, verification, and security taken. In other words, we learned from our losses.
The decisions we make today are stronger because of the losses we experienced.
From the 11-point check we conduct to verify loan application detail to requiring an additional security option (the ‘second way out’), those losses added value in many ways because they helped us shape a more robust process.
Like to find out more?
We welcome you to get in touch. Contact the Merx Wholesale 1 PIE Fund management team here.
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.
37.19
%
Returns Since Inception
As at 30 June 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.
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.
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.
- Investor Brochure
- Investor Application