At the time of writing, the Merx Wholesale 1 PIE Fund is approaching its second anniversary. As with all new investments, particularly those with strong historical results*, it is prudent for investors to ask questions about structure, management, and risk. And of course, one of those questions should always be: How safe is this investment?
First, no investment is 100% safe: Anyone suggesting that about an ‘opportunity’ should be given a wide berth. While risk is inherent in investing, the Merx Wholesale 1 PIE Fund is structured and managed to mitigate risk and create opportunities for strong investor returns. Read on for how.
Shared Risk. Shared Reward.
Alignment of interests is a core principle of the Merx Wholesale 1 PIE Fund. The Trust’s management personally invest alongside our investor partners and have the same risks and potential returns as investors. In other words, we treat every dollar like it’s ours.
The Merx management team has over 20 years of commercial and professional experience in banking, finance, and law. The Fund draws on our years of testing what works and what doesn’t from our personal investing and funding experience and was established with aligned interests as a core principle to deliver transparency and accountability for our investors.
Asset Selection
The Merx Wholesale 1 PIE Fund invests in secured loans to business owners and property professionals. Over the past twenty years, we’ve refined our process for assessing finance applications. It is rigorous in checking the eligibility and suitability of the people we lend to and in evaluating the finance requirements of business or property development plans and projects.
The strength of our lending process is best highlighted by the many Merx client success stories: a growing and comprehensive body of scenarios where considered, purpose-fit-finance advanced to Kiwis with sound plans, drives success. Read about recent client scenarios here.
Merx offers wholesale investors access to actively managed, secured, and diversified loan investments — with experienced leadership, aligned interests, tax efficiency, and the scale to unlock greater opportunity.
Diversification
As mentioned above, the Merx Wholesale 1 PIE Fund invests in secured loans to business owners and property professionals. Investors own a share of the total portfolio of loans instead of being exposed to individual loans. In addition, the Fund maintains a diverse range of unrelated business and property industry borrowers and risk profiles. This diversification reduces concentration risk and the impact of any single underperforming loan on the overall portfolio.
Monitoring
Merx employs a comprehensive approach to monitoring the performance of loans extended to business owners and property professionals and conducts monthly evaluations of each loan within the portfolio. These assessments are not just about numbers but also the strength of relationships with our borrowers, ensuring clear communication channels. This constant monitoring ensures we can promptly identify any potential issues or deviations from expected outcomes to take proactive steps to safeguard investor interests and maintain a healthy loan portfolio.
In a nutshell…
Through the principle of aligned interests, asset selection and management processes, and diversification as described above, we’re committed to accountable and proactive risk management to safeguard investor interests.
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.