Metrics Direct Income Fund
About this Fund
|FUND MANAGER||Metrics Credit Partners|
|ASSET CLASS||FIXED INTEREST|
The Trust will invest as a wholesale investor in the Sub-Trust.
The Trust invests in the Sub-Trust, the Listed Trust, cash and other trusts from time to time established for the Trust’s investments.
|BENCHMARK||RBA Cash Rate plus 3.25% per annum net of fees through the economic cycle.|
|FUND SIZE||RBA Cash Rate plus 3.25% per annum net of fees through the economic cycle.|
|NO. OF HOLDINGS|
Metrics is an Australian based alternative asset management firm specialising in direct lending to Australian companies and is an active participant in the Australian private credit market. Metrics launched its first wholesale fund in 2013 and is the appointed manager of a number of wholesale investment trusts in addition to two ASX listed funds.
The Trust’s Investment Objective is to provide monthly cash income, low risk of capital loss and portfolio diversification, through its exposure to the MCP Wholesale Investments Trust (Sub-Trust) and the Wholesale Funds, by gaining exposure to managed diversified loan portfolios and participating in Australia’s bank-dominated loan market.
Metrics has established a range of unique and innovative investment products that are designed to provide investors with access to portfolios of private credit investments that have regular income potential and would not normally be available to retail investors.
The Manager intends to manage the Trust with a focus on capital preservation. The Manager (as manager of the Sub-Trust and the Wholesale Funds) implements pro-active risk management strategies within a robust risk management framework and culture. The Manager will implement active strategies designed to balance the Trust’s objective in delivering the Target Return while actively managing risk and seeking to preserve investor capital.
The Trust’s Investment Strategy is (through its investment in the Sub-Trust) to create a diversified exposure to Australian corporate loans generally reflecting activity in the corporate loan market and with the resultant diversity by borrower, industry and credit quality. Through active portfolio risk management, the Manager (as manager of the Sub-Trust and Wholesale Funds) will seek to preserve investor capital. The Trust may, subject to the Listing Rules, also hold units in the Listed Trust. There is no determined strategy as to the proportion of the Trust’s assets will be invested in the Listed Trust and this amount may vary from time to time. The Trust may hold units in the Listed Trust in order to be able to satisfy Redemption Requests.
Amounts raised by the Trust will be invested in the Sub-Trust and (subject to the Listing Rules) potentially in the Listed Trust. The Sub-Trust will then invest directly in the Wholesale Funds or directly in investment assets so as to achieve the following Target Portfolio Construction which as at the date of this PDS the Manager expects will achieve the Investment Objective:
(a) Diversified by Borrowers
(b) Diversified by Industries
(c) Diversified by Credit Quality and investment type