RE spots potential 'material differences' in Metrics' listed funds

The Trust Company (RE Services), the responsible entity of all listed funds from Metrics Credit Partners, has requested to pause trading and quotation activities of the Metrics Master Income Trust (ASX: MXT), Metrics Income Opportunities Trust (ASX: MOT), and Metrics Real Estate Multi-Strategy Fund (MRE).

RE Services believes there are "material differences" between the financial information in the preliminary final report and the financial information contained in the final report for the said strategies.

It released a preliminary final report in respect of the funds on 31 August 2026, which disclosed unaudited financial information for the financial year ending 30 June 2026 to the ASX. It is now stating the amounts shown in the preliminary final report may differ materially from the final report.

The preliminary final report was prepared taking into account information provided by the funds' manager Metrics Credit Partners.

As a result, the responsible entity has acted in its capacity to request an immediate voluntary, temporary suspension of quotation and trading, as a "prudent measure" in accordance with the potential discrepancies.

The final report will be finalised on September 30.

RE Services said the suspension will likely remain in place until the release of the final report and believes the voluntary suspension should be granted.

Pinnacle Investment Management swiftly provided an announcement, stating that it has 35% interest in Metrics Credit Partners, where the business has contributed $12.6 million in earnings for FY26, noting the trading halt, but not commenting on the supposed "material differences".

Meanwhile, investment services provider Ord Minnett said whilst the news of a "material difference" in audited accounts was "disappointing", it emphasised the quantum of the differences for the income statement is not yet known.

It also noted Metrics has since provided more details on the differences. On the expected net tangible asset (NTA) revisions, MXT is expected to be ~2% lower, MOT ~10.1% lower and MRE ~12.1% lower.

"The revisions to the NTA are more modest than perhaps we had feared upon first reading," Ord Minnett said.

"In the context of PNI, the relative contribution of Metrics Capital Partners is important - it contributed less than 9% of group earnings in FY26 (adjusted for the new ownership level of 35%). Given the scale of the sell-off in PNI over the last month, the reaction appears to be outsized, in our view.

"In terms of impact to earnings forecasts for FY27 onwards, it's difficult to assess at this point what that might be..."

The announcement follows a volatile period for the Australian private credit sector following the Bathla Group's collapse last month, which saw several private credit fund managers that had exposure in the company freezing redemptions and raising funds in an attempt to complete unfinished projects.