Metrics Master Income trust

About

Metrics Master Income Trust is a listed investment trust on the ASX under the ticket MXT. Of course with a trust this means all income must be distributed which has it’s own perks. The fund boasts a high yield due to it’s higher risk profile or underlying assets investing in corporate financing and private equity. The fund’s target performance is the Reserve Bank of Australia RBA cash rate + 3.25% p.a. At this time of writing the cash rate sits at 4.35%. Metrics Master Income Trust offers a trustworthy alternative to the portfolio and will compliment a solid core portfolio offering a perfect satellite income solution. The management fee is 0.58%-0.61% of the funds net asset value and a performance fee of 0.09% per annum.

Pros

• Monthly Income
• Relatively stable distributions
• Great track record
• Alternative asset class
• Somewhat uncorrelated to stock market fluctations

Cons

• High management fees
• Underlying asset risk during market turmoil