QRI v MXT
Hi James / Shawn / Harry... Would be interested on your view(s) on QRI v MXT for income. Both pay monthly distributions. But QRI seems to be paying a reasonably higher yield? Any thoughts would be appreciated... Many thanks Chris
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Answer
Hi Chris,
Listed investment Trust QRI invests is property loans, much the same as MXT that we previously held in our Income Portfolio, although I’d argue QRI is higher risk, higher targeted return and higher fees. There are a number of these sort of listed trusts on the market these days but they’re not all the same.
QRI targets 8% pa return after fees, with the fee structure on the high side. They charge ~2% when expenses are included plus a 20.5% performance fee on any return over 8%. MXT is more vanilla and charge a management fee below 1% with a more modest target of RBA cash +3.25%. With a lower expected return and no performance fee, MXT is less incentivized to take significant risks to generate returns.
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Metrics Master Income Trust (MXT) v Qualitas Real Estate Income Fund (QRI)
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Metrics Master Income Trust (MXT) v Qualitas Real Estate Income Fund (QRI)
