The PIE structure and its benefits for wholesale investors
Headline returns are important. But net returns after all costs and tax are what really matter to our wholesale investor community. That is where choosing a PIE qualifying investment comes into focus.
The PIE structure is designed with this in mind and offers several advantages for investors.
Returns can be enhanced: With a PIE qualifying investment, tax on investment income is capped at a maximum rate of 28%. For investors subject to higher tax rates, this can result in a greater proportion of returns being retained. This is particularly relevant for our wholesale investors, who are often high-income earners or trusts and may otherwise be taxed at higher rates (33% on personal income between $78,100 and $180,000, 39% above that, and 39% on trust income). In practical terms, this can represent a 5% to 11% reduction in tax on investment income.
Tax compliance can be simplified: Tax on investment returns is paid at source by the PIE, which can make the year-end process more straightforward and reduce administrative complexity for investors.
We think Sonia from Baker Tilly and Luke from Next Advisory have both articulated these benefits particularly well, and we have included links to their articles below:
Luke Kemeys notes that, within a PIE fund, returns are taxed at an investor’s Prescribed Investor Rate, up to a maximum of 28%. For someone earning over $180,000, this results in interest income being taxed at no more than 28%, representing an 11% tax saving. As a result, the effective return can be higher due to the lower tax treatment.
Sonia Gaskin also outlines the benefits clearly, using practical examples to demonstrate how the structure works. As she concludes, investing in a PIE can offer meaningful tax advantages for New Zealand resident investors, including lower tax rates, simplified reporting, and flexibility in investment choice.
It is a structure we believe in strongly enough to invest in ourselves. Accordingly, we have built the Fund this way to share this opportunity with our investors. If you want to understand how the PIE structure works in practice, we are happy to discuss.
Investors must qualify as “wholesale investors” as defined in Schedule 1 of the Financial Markets Conduct Act 2013. The fund is not suitable for retail investors.
11.63
%
Rolling 12 month pre-tax return
As at 30 June, 2026
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 Private Credit Fund. As the Fund'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.
- Information Memorandum
Get the detail – fund description, management, fees, risks and more. View the Merx Private Credit Fund Information Memorandum here.
- Investor Application
Complete the Merx Private Credit Fund Investor Application form here. Note: the fund is not suitable for retail investors.