Metrics direct income fund

The Metrics Direct Income Fund provides investors with  monthly income from the interest and fees charged to borrowers from its holding of corporate loans.

Target return

The Fund targets a net return of the RBA Cash Rate plus 3.25% p.a. (currently 3.60% p.a.)1 through the economic cycle.

Reduced volatility

Corporate loans have a low correlation with public market securities. Corporate loan loss rates have remained below 1% over the past decade, peaking at 0.67% post GFC.2

High governance standards

Upfront risk assessment combined with ongoing monitoring, asset and portfolio stress testing help protect investor capital.

1This is a target return and may not be achieved.
2Source: Major Bank APS 330 reporting. Past performance is not a reliable indicator of future performance.

How the Fund provides regular income

Investors provide funds

Funds from investors are lent to Australian and New Zealand companies across a wide range of industries and sectors.

Companies borrow

Metrics lends to companies to support the growth and performance of these companies, providing an important source of non-bank debt finance.

Fund distributes income

The interest and fees charged to borrowers becomes the source of income for investors. Metrics seeks to distribute this income (minus fund related costs) to investors monthly3.

3Income payments depend on the success of underlying investments and are at the responsible entity’s discretion.

In uncertain times, investors
seek stability

In uncertain times, investors seek stability

Safeguard against inflation
Corporate loans provide protection against inflation because they earn interest that is typically charged on a floating rate. So if interest rates rise, your returns should too.
Payments are scheduled
Australian companies who borrow from Metrics are required under their contractual obligations to pay interest at regular intervals. This enables Metrics to offer Fund investors monthly cash income4.
Australian law protects lenders
Australian corporate insolvency laws give priority to the interest of lenders in claims over the assets of a business which, in turn, helps preserve investor capital5.
Strong performance track record
Metrics has a demonstrated track record of balancing investor demands to preserve capital and deliver on return targets.
The portfolio is diversified
The Fund portfolio provides exposure to in excess of 200 loans across a wide range of industries and sectors7, spreading risk with the aim of delivering regular income4 and preserving investor capital.
4Income payments depend on the success of underlying investments and are at the responsible entity’s discretion.
5All investments carry risks. Return of capital may not be achieved.
6Past performance is not a reliable indicator of future performance.
7The fund may not always be successful in constructing a diversified loan portfolio.

Fund Performance

As at 31 March 2022.

0 %
Net return since inception8
0 %
Net return spread to RBA Cash Rate
0
Individual loans
8Inception date 01 July 2020.
Past performance is not a reliable indicator of future performance. 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 currently 35bps p.a.

How to invest in the Fund

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:

mdif-accessible
Complete an online application
Contact your financial advisor to invest in the Fund on your behalf
Make an investment via platform

Refer to your IDPS operator's requirements. (Advisor only)

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, Foresight Analytics and Zenith.

You must be a financial advisor or wholesale investor to gain access to the Zenith Report. 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 people who lead Metrics

Supported by a team in excess of 100 people, we’re here to help you maximise returns.

Managing Partner - Lockhart
Andrew Lockhart
Managing Partner

Andrew has more than 35 years’ banking and funds management experience, specialising in leverage and acquisition finance as well as corporate and institutional lending.

Managing Partner - Hynes
Justin Hynes
Managing Partner

Justin has over 24 years’  banking and funds management experience working across loan origination, structuring and portfolio management.

Managing Partner - McNamara
Graham McNamara
Managing Partner

Graham has over 40 years’ of experience in banking and funds management, specialising in loan syndications and agency services.

Managing Partner - Tremain
Andrew Tremain
Managing Partner

Andrew has over 35 years’ experience in banking and funds management, specialising in leveraged and acquisition finance, and loan syndications.

Managing Partner - Lockhart
Andrew Lockhart
Managing Partner

Andrew has more than 35 years’ banking and funds management experience, specialising in leverage and acquisition finance as well as corporate and institutional lending.

Managing Partner - Hynes
Justin Hynes
Managing Partner

Justin has over 24 years’  banking and funds management experience working across loan origination, structuring and portfolio management.

Managing Partner - McNamara
Graham McNamara
Managing Partner

Graham has over 40 years’ of experience in banking and funds management, specialising in loan syndications and agency services.

Managing Partner - Tremain
Andrew Tremain
Managing Partner

Andrew has over 35 years’ experience in banking and funds management, specialising in leveraged and acquisition finance, and loan syndications.

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.

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 200 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.

The Metrics Direct Income Fund is highly diversified and contains in excess of 200 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.

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 Credit Partners is one of Asia Pacific’s largest specialist private debt investors with a presence in Sydney and Melbourne, Australia, and Auckland, New Zealand. We currently manage in excess of A$11bn in assets under management and have an experienced team of ~100 employees.

Our capabilities cover all the fundamentals of direct lending and private debt including origination, credit analysis, portfolio risk management and distribution.

To learn more, see about us.

Ratings are subject to Terms and Conditions and are one of the factors to be taken into account when making an investment decision.

Consider An Alternative Income-Focused Investment Today

The Australian Private Debt market reached a record size of $133bn at the end of calendar 2021 and remains a key source of growth funding for Australian businesses9.

For investors, it provides superior risk-adjusted returns and low capital volatility compared to traditional fixed income investment opportunities.

9EY Australian Private debt Market Update for 2021.

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.

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