Wholesale investor: What does it mean to be one?

In the diverse investment ecosystem, wholesale investors often don’t get as much spotlight as retail investors. Yet, certain advanced opportunities – like the Merx Wholesale 1 PIE Trust – are only available for this group of experienced and knowledgeable investors.

So, if you’re considering whether you are one, this quick guide can help you understand what it entails and the benefits attached.

What’s a wholesale investor?

Broadly speaking, a wholesale investor is an individual or entity with enough financial experience and understanding to assess investment opportunities independently. Compared to retail investors, wholesale investors are considered to have more in-depth knowledge about financial markets, which enables them to venture into more complex and higher-risk investments.

The reason is simple. As the Financial Markets Authority explains here, wholesale investment offers don’t have the same protections as their retail investor counterparts. For example, wholesale investment offers don’t require a Product Disclosure Statement (PDS) or enable access to a free independent dispute resolution scheme. On the other hand, of course, wholesale investment providers must still comply with ‘fair dealing’ requirements, meaning any claims they make, or information they provide, can’t be misleading or unsubstantiated.

What are the benefits and risks?

As we mentioned earlier, the main benefit of being a wholesale investor is access to a broader spectrum of investment opportunities.

Wholesale investors are not restricted to retail investment offers and can participate in higher-risk investment options that typically aren’t available to less experienced investors. Alongside a higher level of risk, these wider-ranging investment opportunities also offer the potential for attractive returns.

Once again, it’s important to note that the wholesale investor designation is only for investors with the appropriate financial knowledge and experience to make suitable investment decisions, as they are not receiving regulated financial advice.

Are you a wholesale investor looking for the next opportunity?

At Merx, we have established the Merx Wholesale 1 PIE Trust as a distinctive opportunity for likeminded wholesale investors. As long-time investors ourselves, we agreed that we’d want a debt fund that prioritised aligned interests, delivered diversification within a single asset class, and offered both flexibility and tax efficiency.

After surveying the market and finding that no other fund offered all four points, we decided to bring that fund structure to life ourselves: the Merx Wholesale 1 PIE Trust.

Like to know more? 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.

30.99

%

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)

17.50%

 

Returns since inception

30.99%

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”).