Managing Risk and Return: The Merx Wholesale 1 PIE Fund

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.

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.

30.75

%

Returns Since Inception

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.

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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)

17.41%

 

Returns since inception

30.75%

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.

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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”).