Metrics funds face net tangible asset downgrades

• Metrics Real Estate Multi-Strategy Fund, Metrics Income Opportunities Trust, and Metrics Master Income Trust face net tangible asset reductions of up to 12.16% following a KPMG audit.
• All three listed funds were suspended from ASX quotation ahead of lodging audited annual financial reports.
• The revaluations reflect increased provisions for potential credit losses under heightened scrutiny from corporate regulators.

Three listed funds managed by Metrics Credit Holdings face net tangible asset reductions of up to 12.16% following an independent audit by KPMG Australia.

The adjustments create material differences between figures in the preliminary financial reports and the final audited statements due on Sept. 30.

“The resulting provisions reflect a more risk-weighted assessment of potential outcomes, having regard to prevailing interest rates and macroeconomic conditions and heightened regulatory expectations as applied to specific assets and the portfolio generally,” Metrics Credit Holdings stated in a release.

Under the revised figures, MRE’s net tangible assets drop from $2.53 to $2.22, MOT falls 10.08% to $1.93, and MTX slips due to higher provisions for potential credit losses and private equity revaluations.

The company stated that the adjustments apply greater weight to downside macroeconomic scenarios but do not represent a definitive conclusion that those events will occur.

The revisions align with recent warnings from the Australian Securities and Investments Commission urging private credit managers to ensure current asset valuations accurately reflect portfolio risk.