How the PIE structure can benefit investors

Here's why we chose the PIE trust structure, and how it benefits us and everyone who invests alongside us.
Why a PIE structure is a good idea

Over the past month, we have welcomed a number of new investors, with many more requesting detailed information about the Merx Wholesale 1 PIE Trust. Also, we have received positive feedback from our existing investor partners, confirming that the structure and features we selected meet the needs and goals of our growing investor community. 

This month, we’d like to tell you a bit more about why we chose the PIE trust structure, and how it can benefit investors in the fund. If you have contacts who may be interested in this opportunity, please don’t hesitate to get in touch.


We know just how important it is to make the most out of your investments, and that’s where the PIE structure comes into play. Thanks to its tax-efficient design:

  • Returns are maximised: With the PIE structure, the tax rate on returns is capped at a maximum of 28%, which allows investors on higher marginal tax rates to keep more of their investment returns. You can see why this is beneficial for wholesale investors, who are typically high-income earners or Trusts, and would otherwise be taxed at higher tax brackets (33% for trusts and 39% for personal income above $180,000). That’s a 5-11% lower tax rate on your investment income.
  • Tax compliance is streamlined: Tax on your investment returns is paid at source by the PIE. So, the year-end process can be easier and more convenient for investors.

We like how our friends Sonia from Baker Tilly and Luke from Next Advisory explain the benefits, so here are the links to their great and expert work:

  • As Luke Kemeys wrote in his blog“With a PIE Fund] Your investment returns are taxed at your Prescribed Investor Rate (‘PIR’) up to 28%. Someone earning over $180,000 in income will now have their interest income from the PIE Fund taxed at 28% max, meaning they are saving themselves 11% in tax. Someone earning over $70,000 will save 5% in tax. This makes the effective return of the PIE Fund investment even higher as the tax rate is lower, so your real return increases when compared to a term deposit.”
  • Sonia Gaskin also explained the benefits clearly in her post last week, with practical examples. As she concluded: “Investing in a PIE can provide significant tax advantages for New Zealand resident investors. With lower tax rates, simplified tax reporting and flexibility in choosing investment options, investing in a PIE can be a smart choice for those wanting to maximise their return.”

This is the structure we want to be invested in ourselves. So, we set it up to be able to share this opportunity with our investors as well. If you’d like to learn more about any of this, we’re here for any questions you may have. 

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. 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 (“FMCA”). The Trust is not suitable for retail investors.

Give us a call on 09 215 9364 or email us at if you’d like to set up a time to talk.

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