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.

Through its investment in the MCP Wholesale Investments Trust (Sub-Trust) and the Wholesale Funds, the Fund’s investment strategy provides investors with exposure to a portfolio of directly originated loans to Australian and New Zealand companies, diversified by borrower, industry, and credit quality.

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 contains in excess of 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.

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.

Credit and default risk are the key risks within a portfolio of private debt assets, and as such credit quality and monitoring is the top priority for the Metrics team. 

The Metrics Direct Income Fund is highly diversified and contains in excess of 300 loans, each representing an average ~0.5% – 1% of the total value of the portfolio.

Credit risk, being the risk that a company will default and fail to repay a loan, is the key risk within a portfolio of private debt assets, and as such credit quality and monitoring is the top priority for the Metrics team. 

There are three key ways we manage credit risk:

1. Metrics undertakes detailed and thorough risk assessment of all borrowers it lends to and completes rigorous due diligence prior to committing its capital.
2. Metrics ensures there is sufficient equity buffer within the loan agreements to absorb any decline in the financial performance, and sufficient covenants and controls to protect investor capital.
3. If a workout or corporate restructure is required, Metrics have a highly skilled and professional investment team, with significant experience in corporate restructuring to act swiftly, seeking to preserve value for our investors.

With the exception of fraud, financial distress is normally identified well in advance of payment default, and regular reporting, borrower engagement, financial covenants and disclosure obligations give a high degree of transparency regarding a business’ financial and operational performance.

Please refer to section 8 of the Product Disclosure Statement for all the investment risks associated with investing in the Fund.

You should also read the important information about the risks of an investment in the Trust in section 6 of the AIB before making a decision.

Monthly Performance Reports are available on our website. Monthly Distribution and Holding Statements and annual tax reporting is available via the Registry Investor Portal.

Metrics Master Income Trust (ASX:MXT) is a listed investment trust (LIT) which may be traded daily on the ASX. MXT units may trade at a premium or a discount to the Net Asset Value (NAV) of the portfolio. The Trust’s investment objective is to provide monthly cash income, low risk of capital loss and portfolio diversification by gaining exposure to actively managed diversified loan portfolios in the bank-dominated Australian corporate loan market. The Trust may be suitable for investors looking for an alternative to traditional fixed income investments and offers investors diversified exposure to Australian corporate loans diversified by borrower, industry, and credit quality.

Metrics Income Opportunities Trust (ASX:MOT) is a listed investment trust (LIT) which is traded daily on the ASX. MOT units may trade at a premium or a discount to the Net Asset Value (NAV) of the portfolio. The Trust’s investment objective is to provide monthly cash income, preserve investor capital and manage investment risks while seeking to provide potential for upside gains through investments in private credit and other assets such as warrants, options, preference shares and equity. The Trust may be suitable for investors seeking an alternative to equity investments for income purposes.

The Metrics Direct Income Fund (Fund) is an unlisted Australian unit trust, which offers monthly applications and redemptions at the Net Asset Value (NAV). It’s investment strategy is the same as Metrics Master Income Trust (ASX:MXT), in that it aims to provide monthly cash income, low risk of capital loss and portfolio diversification through its participation in the bank-dominated Australian corporate loan market. Additionally, Metrics Direct Income Fund may hold units in the Metrics Master Income Trust (ASX:MXT). The Fund may be suitable for investors looking for diversified exposure to a diversified portfolio of Australian and New Zealand corporate loans, without the potential volatility of the ASX traded price.

Metrics is a leading Australian non-bank corporate lender and alternative asset manager with ~$22bn in AUM and a greater than 11-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.

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