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Metrics Master Income Trust (ASX: MXT) – “preliminary final report”

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Question asked 04/09/2026

Metrics Master Income Trust (ASX: MXT) – “preliminary final report”

Hi Monday was the final day for most companies to have reported FY26 results. Metrics (MXT) released a "preliminary final report" that included the following note (auditor's name removed by me): "****** (the auditor for the Fund) has notified the Responsible Entity that as of 31 August 2026, ******’s audit of the 30 June 2026 Financial Report for the Fund is incomplete and that ****** continues to work through remaining audit procedures required to bring the audit to completion, noting the statutory deadline as required by the Corporations Act 2001 (Cth), 30 September 2026." Based on your experience, is this the sort of comment that should cause any concern for investors, or is it likely to something as simple as say, a shortage of audit staff, or some innocuous other factor beyond the auditor's control? Is it fair to assume it's probably not a great look for a company, or is it just one of those things that sometimes happens and doesn't really make much difference? Cheers, Carl

Answer

Hi Carl,

It’s not a good look, and shouldn’t happen, particularly to a company the size of Metrics where they are already battling with concerns around property values, private credit, their treatment of equity positions (or equity like positions) in their funds, and now they can’t get their books signed off in time – this smells.

Credit is a confidence game, and investors buying/holding MXT are providing them capital, on the basis they will lend that capital out sensibly, and collect it, with an adequate return in the process. Each incremental issue that Metrics have, including their inability to get their books signed off, erodes confidence. An example of the markets lack of confidence in Metrics is the dislocation between the reported NTA of the Metrics Credit Opportunities Fund (MOT) of $2.14 versus the last trading price of $1.58 – a 26% discount. The market is simply saying they don’t believe the valuations being applied to the underlying assets. That same thinking is now being applied to MXT, which is trading at $1.73, versus reported NTA of $2.

In answer to your specific question, we don’t know what the actual issues are, and whether or not they are large or small, but we do know it is not “just one of those things that sometimes happens and doesn’t really make much difference”. It’s a major issue, particularly given the noise around private credit at the moment.

As longer term readers may know, we’ve been cautious on Metrics for some time, largely around their size and need to deploy capital. i.e. big is not always best on PC. Click Here for our last update which links to a few earlier ones.

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Metrics Master Income Trust (MXT)

LAST UPDATED 04/09/2026 12:38

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