FUND OVERVIEW
The Metrics Direct Income Fund seeks to provide investment exposure to Australian corporate loans, diversified by borrower, industry and credit quality – an investment space dominated by the banks.
Through active portfolio management, Metrics seeks to balance investor requirements for return and capital preservation.
Target Return
The Fund targets a return of the RBA Cash Rate plus 3.25% p.a.1 (currently 6.85% p.a. net of fees) throughout the economic cycle.
1 This is a target return and may not be achieved.
How the fund provides regular income2
Investors commit capital
Investors provide funds to Metrics, which are then made available for lending to Australian and New Zealand companies across diverse industries and sectors.
Companies access finance
Metrics lends this capital to businesses, supporting their growth and providing an important source of non-bank debt finance.
Income is distributed to investors
Under their loan agreements, Australian companies borrowing from Metrics must pay interest at agreed intervals. These repayments support the Funds’ ability to deliver monthly cash income2 to investors.
2 Income payments depend on the success of underlying investments and are at the Responsible Entity’s discretion.
Fund Features
Diversified Portfolio of 300+ Corporate Loans3
The Fund portfolio provides exposure to over 300 loans, diversified across borrowers, industries and the credit spectrum.
Monthly Cash Income4
Australian companies who borrow from Metrics are required under their contractual obligation to pay interest at regular intervals. This enables Metrics to offer monthly cash income.
Mitigating The Impact of Inflation5
Corporate loans can provide protection against inflation because they earn interest that is typically charged at a floating rate. So, if interest rates rise, your returns should too.
Low Capital Volatility
Corporate loans exhibit a low correlation with public market securities. Over the past decade, corporate loan loss rates have remained below 1%, even during economic downturns, with a peak of 0.68% post the Global Financial Crisis (GFC).6
3 The fund may not always be successful in constructing a diversified loan portfolio.
4 Income payments depend on success of underlying investments and are at the responsible entity’s discretion.
5 Past performance is not indicative of future performance.
6 Source: Major Bank APS 330 reporting. Past performance is not a reliable indicator of future performance.
Investment Risks
All investments are subject to risk, which means the value of your investment may rise or fall. Before making an investment decision, it is important to understand the risks that can affect the value of your investment. A summary of some of the main risks are outlined below. Please refer to section 8 of the PDS for a more comprehensive list of potential risks before making an investment decision.
The investments of the Wholesale Funds and accordingly the Trust and Sub-Trust are generally less liquid investments than other investments (such as exchange traded investments) as the investments that the Trust is exposed to via the Sub-Trust and Wholesale Funds are long dated (up to 10-year terms).
The ability of the Trust, the Sub-Trust and Wholesale Funds to dispose of an investment may depend on market liquidity, the terms agreed with the relevant borrower and the maturity date of the loans. The liquidity of the investments to which the Trust (via the Sub-Trust and Wholesale Funds) is exposed will also be dependent on a borrower’s ability to repay a loan.
Credit risk is the risk that one or more assets to which the Trust is exposed may decline in price or fail to pay interest or principal when due because the credit counterparty or borrower experiences a decline in its financial status.
Default risk is the risk that a borrower defaults on their obligations, for instance by failing to make a payment due or to return the principal.
The Trust will invest in the Sub-Trust and the Sub-Trust will invest in and alongside the Wholesale Funds. As such, the Trust may be exposed to the risks that are specific to the Sub-Trust and the Wholesale Funds. This may include operational risks, distribution risks, valuation risks, liquidity risks and tax risks that are specific to the Sub-Trust and the Wholesale Fund
To the extent that the Trust, Sub-Trust or the Wholesale Funds use leverage to fund investments, and the counterparty to an investment was to fail to pay interest or principal when due (a payment default), the Trust, Sub-Trust or the Wholesale Funds are still obliged to service their interest and principal payment obligations.
The inability to do so may give rise to the Trust’s, Sub-Trust’s or underlying Wholesale Fund’s loan provider taking action under the relevant facility terms to recover amounts owed.
The Trust will be exposed to (through the Sub-Trust and the Wholesale Funds) both drawn and undrawn loans that may be drawn up and down by the borrower over time.
The Sub-Trustee and its related entities are trustees of each of the funds that the Trust is exposed to. Metrics is also the manager of each of those funds. Situations may arise where Metrics, the Sub-Trustee and the Sub-Trustee’s related entities have interests that conflict with those of the Investors.
Certain events may have a negative effect on the price of all types of investments within a particular market in which the Sub-Trust or the Wholesale Funds hold investments.
These events may include (but are not limited to) changes in legal, tax, economic, social, technological or political conditions, laws as well as general market sentiment. Industry specific shocks relevant to underlying loan assets and general market disruption can adversely impact the value of Trust assets.
The performance and profitability of the Trust may be affected by many factors including the fact that the value of the portfolio in which the Trust invests may vary over time. This may result in either an increase or decrease in the value of Units and ultimately the value of your investment, which may result in the loss of income and the principal you initially invested.
Performance
0
%
Net Return since inception 8
0
%
Income distribution since inception
0
Individual loans
Fund Performance as at 30 September 2025
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| 1 mth | 3 mth | 1 yr | 3 yr(1) | 5 yr(1) | Incep(2) | |
|---|---|---|---|---|---|---|
| Net Return (%) | 0.62 | 2.00 | 8.35 | 8.93 | 7.42 | 7.75 |
| RBA Cash Rate (%) | 0.30 | 0.94 | 4.15 | 4.05 | 2.56 | 2.45 |
| Distribution (%) | 0.65 | 2.00 | 8.41 | 8.93 | 7.30 | 7.10 |
| Spread to RBA (%) | 0.35 | 1.06 | 4.26 | 4.88 | 4.74 | 4.65 |
1 NOTES: (1) Annualised (2) Inception date 01 July 2020 (8) Inception date 01 July 2020.
Past performance is not a reliable indicator of future performance. Returns greater than one year are annualized. Income payments depend on the success of the underlying investments and are at the responsible entity’s discretion. Fund returns are net of fees and in AUD. Calculations are based on exit prices after taking into account ongoing fees and costs and assumes reinvestment of distributions via the Distribution Reinvestment Plan (DRP). No allowance has been made for individual investor circumstances. RBA Cash Rate as at 13/08/2025 360bps p.a.
How to invest
The minimum initial investment for an investor is $1,000.
Before making an application for units in the Fund, please read the Product Disclosure Statement (PDS) and Additional Information Booklet and Target Market Determination (TMD) carefully and in their entirety to assess whether the Fund is appropriate given your objectives, financial situation or needs.
To apply for units in the Fund, you can either:
- Complete an online application
- Contact your financial advisor to invest in the Fund on your behalf
- Make an investment via platform
| Platform Availability | |||
|---|---|---|---|
| AMP North | Asgard | Australian Money Market | BT Panorama |
| CFS FirstWrap | Clearstream | HUB24 | Insignia eXpand |
| Macquarie Wrap | Mason Stevens | Netwealth | Praemium |
| Powerwrap | |||
| Platform Availability | ||
|---|---|---|
| AMP North | Asgard | Australian Money Market |
| BT Panorama | CFS FirstWrap | Clearstream |
| HUB24 | Insignia eXpand | Macquarie Wrap |
| Powerwrap | ||
Units in the Metrics Direct Income Fund are issued by Equity Trustees Limited AFSL 240975. Metrics Credit Partners Pty Ltd (Metrics) AFSL 416 146 is the manager of the Fund.
INDEPENDENTLY RESEARCHED AND RATED
The Fund has been independently rated by Bond Adviser, Zenith Investment Partners, Lonsec and Independent Investment Research.
You must be a financial advisor or wholesale investor to gain access to the Zenith and Lonsec Research Reports. Ratings are subject to Terms and Conditions and are one of the factors to be taken into account when making an investment decision.
MEET THE PARTNERS
Supported by an investment team in excess of 180 people.
Andrew Lockhart
Group CEO & Managing Partner
Andrew has more than 37 years’ banking and funds management experience, specialising in leverage and acquisition finance as well as corporate and institutional lending.
Justin Hynes
Managing Partner
Justin has over 24 years’ banking and funds management experience working across loan origination, structuring and portfolio management.
Graham McNamara
Managing Partner
Graham has over 40 years’ of experience in banking and funds management, specialising in loan syndications and agency services.
Andrew Tremain
Managing Partner
Andrew has over 35 years’ experience in banking and funds management, specialising in leveraged and acquisition finance, and loan syndications.
White Paper: Understanding Private Debt Investing
In recent years, private debt investing has surged due to its ability to offer attractive, risk-adjusted returns and low capital volatility.
This white paper delves into the intricacies of private debt, exploring the features, risks and benefits of this seemingly complex asset class and its role in today’s investment landscape.
Inside, you will learn about:
- What is private debt,
- Who the borrowers are,
- Why invest in private debt,
- Risks of investing in private debt,
- How to access the market.
FAQs
The Metrics Direct Income Fund is an unlisted, open-ended Australian unit trust. The Fund aims to provide monthly cash income, low risk of capital loss and portfolio diversification through its participation in the bank-dominated Australian and New Zealand corporate loan markets, diversified by borrower, industry, and credit quality.
The Fund will invest as a wholesale investor in the Sub-Trust, being the MCP Wholesale Investments Trust. The Sub-Trust invests in the Wholesale Funds managed by Metrics and may invest directly in investment assets itself to best achieve the Investment Objective.The Wholesale Funds are Metrics Credit Partners Diversified Australian Senior Loan Fund , MCP Secured Private Debt Fund II and MCP Real Estate Debt Fund . From time to time the Trust may, subject to the Listing Rules, hold units in the Metrics Master Income Trust which are traded on the ASX.
The Australian and New Zealand corporate loan markets represent a large and active segment of the fixed income markets, which have traditionally been dominated by the banks. Corporate loans have typically been provided across the middle portion of the credit spectrum and include lending to businesses, commercial real estate, and projects (e.g., infrastructure). Increased regulation and capital adequacy requirements for banks has created an opportunity for large, experienced non-bank lenders like Metrics to participate, offering investors exposure to the majority of Australia’s largest companies and projects.
The Metrics Direct Income Fund aims to create a diversified exposure to Australian and New Zealand corporate loans, generally reflecting activity in the corporate loan market.
The Fund has exposure to over 300 individual investments, diversified across public and private companies, industry sectors and the credit spectrum.
No. Where the Trust is liquid, the Responsible Entity will typically accept redemption requests monthly. Redemption requests are subject to 10 business days’ prior written notice and are processed at the end of each month.
In certain circumstances redemptions may be restricted. Please refer to the PDS for more information.
Metrics Direct Income Fund seeks to distribute cash income to unitholders monthly.
Distributions will be paid at the discretion of the Responsible Entity and may depend on a number of factors, including future earnings, capital requirements, financial conditions, future prospects and other factors that the Responsible Entity deems relevant.
For investors who want the option to re-invest their distributions, the Fund has established a Distribution Reinvestment Plan (DRP). Under the terms of the Fund’s DRP, income distributions will be reinvested in the Fund on behalf of the investor and new units will be issued to that investor. These new units will be issued based on the month-end price for a value equal to their monthly distribution.
You can elect to participate in the DRP via the Registry Investor Portal.
Metrics is a leading Australian non-bank corporate lender and alternative asset manager with ~$30bn in AUM and a greater than 12-year track record of performance and capital preservation.* Through its managed funds, Metrics offers investments across private debt and private equity. Metrics’ experienced investment team comprises of the four founding partners and is supported by a team of highly qualified investment professionals with skills and experience covering origination, credit and financial analysis, portfolio risk management, legal and fund administration.
*Past performance is not a reliable indicator of future performance.
To learn more, see about us.
Disclaimer
Equity Trustees Limited (Equity Trustees) ABN 46 004 031 298 | AFSL 240975, is the Responsible Entity for the Metrics Direct Income Fund ARSN 641 620 331 (the Fund). Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT). The Investment Manager for the Fund is Metrics Credit Partners Pty Ltd (Metrics) ABN 27 150 646 996 | AFSL 416 146. The information provided is issued by Equity Trustees and has been prepared to provide you with general information only. In preparing this information, Equity Trustees did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Equity Trustees, Metrics nor any of their related parties, their employees or directors, provide any warranty of currency, accuracy, completeness or reliability in relation to such information or accept any liability to any person who relies on it. Neither Equity Trustees nor Metrics guarantees repayment of capital or any particular rate of return from the Fund. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance should not be taken as an indicator of future performance.
You should obtain and carefully consider in their entirety the current Product Disclosure Statement, Target Market Determination and any updated information and continuous disclosure notices before making an investment decision in respect of the Fund and assess whether the Fund is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.
For all important information regarding BondAdviser Product Assessments please see the final page of the BondAdviser Fund Report or visit www.bondadviser.com.au.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) ratings assigned to Metrics Direct Income Fund (EVO2608AU) on 16 September 2025 referred to in this communication are limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The rating issued 09/2025 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2025 Lonsec. All rights reserved.
The IIR rating requires to be read with the full research report that can be found on the issuers website (or upon request) together with their full disclaimer that is found on the front cover of their research note. IIR requires readers of their research note to obtain advice from their wealth manager before making any decisions with respect to the recommendation on this note. The note is not general advice just financial information without having regard too the financial circumstances of the reader.
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