Refining the Merx Fund Structure

Investor Knowledge

Refining the Merx Fund Structure

Wholesale 1 PIE Trust Returns

As at May 31, 2025

54.78

%

Total Cumulative Return Since Inception is the compounded monthly, distributions after deductions for all charges before tax (Investor PIR = 0%) since the establishment of this fund. Returns are re-invested in this scenario (time-weighted return). Past performance is not a guarantee of future performance. The fund was established 30 June 2022 and made its first investments in September 2022.

08 Dec

As the fund evolves, so does our commitment to clarity. We’re refining key documents to ensure greater transparency and a more investor-focused experience.

Author

Andrew
Dunning

As we near the 18-month mark of the establishment of the Wholesale 1 PIE Trust, we have taken the opportunity to reflect on our journey and refine the establishment documents of the fund.

Our goal for this is simple: to continue to provide a flexible, transparent, and investor-focused experience. With this in mind, we’ve identified key areas that needed further clarity. Here’s an overview of the changes we’re implementing to these key documents.

• NZ-focused investments

Originally, our establishment documents allowed for the possibility of lending in Australia. However, after careful consideration, we’ve decided to concentrate exclusively on opportunities within New Zealand. While we might consider setting up a separate fund for Australia in the future, our current priority is the New Zealand market.

• No related-party loans

This has always been a standard in our approach. However, our initial set of rules didn’t explicitly limit related-party loans. As part of our commitment to maintaining the highest transparency with the fund, we’re now making it very clear: the Merx Wholesale 1 PIE Trust will not lend money to Merx management or any other related parties.

We’ve often seen what can happen when lenders use investors’ money for their own projects, and we want to avoid any potential conflicts of interest. Our focus remains on lending to others, not to ourselves.

• The fund will not borrow

While our initial rules allowed for this, discussions with our investor partners have shown a preference that the Trust does not borrow. Once again, this decision is all about keeping the fund structure straightforward and secure.

• More clarity on exit fees

Exit fees are applicable for withdrawals within a six-month notice period. The intent of these fees is to compensate the other investors in the fund for the necessity and impact of being able to manage a short-notice withdrawal request. It is a drag on investor returns.

To avoid any ambiguity about the allocation of these fees, our establishment documents now clarify that exit fees, if payable, will be contributed back into the fund, not to us as managers. This ensures fairness and aligns with the principle that the fund’s risks and rewards are shared amongst all investors.

With these changes, we’re stepping into the next phase of the fund’s life with stronger and more transparent guidelines. As always, it’s all about making sure the Wholesale 1 PIE Trust maintains transparency and aligns interests of the manager to our investors’ interests.

Like to join us in this journey?

The Wholesale 1 PIE Trust is a reflection of the management team’s own journey and personal commitment. If you’d like to join us on this journey, click here to learn more and give us a call on 09 215 9364 to discuss further. We look forward to hearing from you.

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.