Metrics Morningstar - October 2023

Look beyond dividends for income.

Private debt aims to provide income you can count on, even in uncertain times. That's because income from private debt investments are derived from the interest and fee payments received from borrowers at specific intervals under the binding terms of their loan agreement.

This contrasts with dividends that are paid to equity holders at a company's discretion after its debt obligations are met.

Even when equity markets were at their most turbulent in early 2020, and many companies were suspending or reducing dividends, well-managed private debt funds continued to deliver consistent income to investors.

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Metrics Direct Income Fund

The Metrics Direct Income Fund (Fund) targets a return of the RBA Cash Rate plus 3.25% p.a. net of fees (currently 7.60% p.a.)¹ through a diversified portfolio of directly originated loans to Australian companies. The Fund returned 9.90% net income over 12 months to 31 January 2024 and 7.39% p.a. net of fees since its inception on 1 July 2020.²

Features:

Monthly income³
Diversified portfolio of 300 corporate loans
Experienced and active management team
Monthly liquidity (where the Fund is liquid)⁴
Minimum initial investment $1,000⁵

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* Ratings are subject to Terms and Conditions. Ratings are only one factor to be considered when making an investment decision.

Target return is a target only and may not be achieved. RBA Cash Rate currently 435bps p.a. Neither the Investment Manager or the Responsible Entity guarantees the performance of the Fund or the return of investor's capital.
Past performance is not a reliable indicator of future performance. Since inception return is annualised.
Income payments depend on the success of underlying investments and are at the responsible entity's discretion.
Where the Fund is liquid, the Responsible Entity will typically accept redemption requests monthly, at the end of each month, with 10 business days prior written notice.
Direct Investors only. Minimum investment via platform may vary, refer to IDPS operator requirements.

Key risks

Credit risk is one of the risks within a portfolio of private loan assets. We address this risk by:

Undertaking a detailed and thorough risk assessment of all borrowers we lend to and complete rigorous due diligence prior to committing capital.
Ensuring there is a sufficient equity buffer within the loan agreements to absorb any decline in the financial performance and valuation of a company.
Employing highly skilled investment professionals with experience in corporate restructuring that can act swiftly to preserve value for our investors should a workout or corporate restructure be required.

About Metrics Credit Partners

Metrics Credit Partners is a leading alternative asset manager with in excess of $16bn in AUM and a track record of more than 10-years of performance and capital preservation.⁶

⁶ Past performance is not a reliable indicator of future performance.

To keep up to date with opportunities in the Australian private debt market, follow us on LinkedIn or visit our website today.

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.

The Zenith Investment Partners (ABN 27‌ 10‌ 132‌ 672‌, AFS Licence 226‌872‌) (“Zenith”) ratings (assigned to Metrics Direct Income Fund (EVO2608‌AU‌)), on 6 June 2023‌ 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.

Lonsec: The ratings issued 08‌/2023‌ (assigned to Metrics Direct Income Fund, Metrics Master Income Trust and Metrics Income Opportunities Trust) are 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. © 2023‌ Lonsec. All rights reserved.