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METRICS DIRECT
INCOME FUND
OVERVIEW
Metrics Direct Income Fund’s investment strategy is 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. (currently 3.35% p.a. net of fees)* through the economic cycle and seeks to implement active strategies designed to balance delivery of the target return, while preserving investor capital.
*This is a target return and may not be achieved.
WHO IS THE METRICS DIRECT INCOME
FUND DESIGNED FOR?
Metrics Direct Income Fund may be suitable for investors looking for an investment that seeks to provide:
Monthly cash
income
Reduced capital
volatility
Attractive risk-adjusted returns from a portfolio diversified across ~230 individual loans
Competitive fee structure & monthly liquidity where the fund is liquid
This information is of a general nature only and has been prepared without taking into account 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.
PERFORMANCE
0
%
Net Return since Incep (2)
0
%
Net Return Spread to RBA Cash Rate
0
Individual loans
Fund Performance as at 31 December 2021
| 1 mth | 3 mth | 6 mth | 1 yr | 2 yr(1) | Incep(2) | |
|---|---|---|---|---|---|---|
| Net Return (%) | 0.47 | 1.19 | 2.26 | 5.06 | – | 6.74 |
| RBA Cash Rate (%) | 0.01 | 0.03 | 0.05 | 0.10 | – | 0.13 |
| Distribution (%) | 0.38 | 1.10 | 2.12 | 4.71 | – | 4.22 |
| Spread to RBA (%) | 0.37 | 1.07 | 2.07 | 4.61 | – | 4.09 |
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NOTES: (1) Annualised (2) Inception 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 entry fees or taxation.
RBA Cash Rate currently 10bps p.a.
WHY INVEST IN METRICS DIRECT INCOME FUND
An alternative investment opportunity
The Australian corporate loan market represents a large and active segment of Australia’s corporate fixed income market which generally provides superior risk-adjusted returns compared with other fixed income investment opportunities.
As an experienced investment team that understands the various sources of income available from, and risks associated with, corporate loans, Metrics believes it is well placed to implement investment strategies and processes able to maximise returns from this asset class.
EDUCATION
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How to invest
The minimum initial investment for a Direct Investor is $1,000.
For an investment via platform, please refer to your IDPS operator’s requirements.
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).
| Platform Availability | ||
|---|---|---|
| AMP North | Asgard | BT Panorama |
| BT Wrap | CFS FirstWrap | HUB24 |
| IOOF eXpand | Macquarie Wrap | Mason Stevens |
| Netwealth | Powerwrap | uXchange |
Units in the Metrics Direct Income Fund are issued by Evolution Trustees Ltd AFSL 486 217. Metrics Credit Partners Pty Ltd (Metrics) AFSL 416 146 is the manager of the Fund. Before making an investment decision in respect of the Fund, consider the PDS, TMD and whether the Fund is appropriate given your objectives, financial situation or needs.
RESEARCH RATINGS
The Metrics Direct Income Fund has been independently rated by Foresight Analytics, Zenith Investment Partners and Bond Adviser.
Note: You must be a financial advisor or wholesale investor to obtain the Zenith Report.
Ratings are subject to Terms and Conditions which can be found here: Ts and Cs
Ratings are only one factor to be taken into account when making an investment decision.
Key Terms
| FUND | Metrics Direct Income Fund |
| TARGET RETURN | RBA Cash Rate plus 3.25% p.a. net of fees (currently 3.35% p.a.)* |
| DISTRIBUTIONS | The Fund intends to pay distributions monthly |
| MINIMUM APPLICATION AMOUNT | $1,000 |
| REDEMPTIONS | Generally monthly where the Fund is liquid |
| MANAGEMENT COSTS | 0.60% p.a.** of the Funds NAV |
| INCEPTION DATE | 1 July 2020 |
| MANAGER | Metrics Credit Partners |
| RESPONSIBLE ENTITY | Evolution Trustees Limited |
| UNIT REGISTRY | Automic Group |
| APIR CODE | EVO2608AU |
*This is a target return and may not be achieved.
**Excluding impact of performance fees.
FAQs
Here are some of our most frequently asked questions
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Continuous disclosure notice
Evolution Trustees Limited ACN 611 839 519 (ETL) is the responsible entity of the Metrics Direct Income Fund ARSN 641 620 331 (Fund). Metrics Credit Partners Pty Ltd (Metrics) is the investment manager of the Fund. ETL and Metrics consider that the replacement of ETL as the Fund’s responsible entity with Equity Trustees Limited (EQT) would be in the best interests of the Fund and its members. Accordingly, ETL proposes to retire as responsible entity of the Fund and has called a meeting of the Fund’s members to vote on a resolution to appoint EQT as the Fund’s responsible entity. The notice of meeting (NOM) and explanatory memorandum are available here.
The notice of meeting, explanatory memorandum and a personalised proxy were despatched to members of the Fund on 2.9.21 and a supplemental explanatory memorandum was despatched on 14 December 2021 (available here). The meeting of Fund’s unitholders of 7 December 2020 to approve the appointment of Equity Trustee Limited as the Fund’s responsible entity was adjourned to 20 December 2020. The adjourned meeting was dissolved as a quorum was not present. It remains the Responsible Entity’s intention to facilitate the appointment of Equity Trustees Limited as the Fund’s responsible entity and it is expected that a new meeting will be convened in 2022. The Responsible Entity will provide an update to members of the Fund with any next steps in this process.
ETL as responsible entity for the Fund is following ASIC’s good practice guidance in satisfying its continuous disclosure obligations by providing continuous disclosure notices to www.metrics.com.au/funding-solutions/metrics-direct-income-fund as set out in the Fund’s product disclosure statement.