A$144.9m profit and 15.69c distributions reported by MXT

Audited accounts resolve one uncertainty, not the liquidity question

Metrics Master Income Trust (ASX:MXT) has lodged its audited financial statements for the year ended 30 June 2026, with KPMG issuing an unqualified opinion. That removes the immediate uncertainty around whether the accounts would be materially revised, but it does not settle the more consequential issue disclosed in the same report: the underlying funds in which MXT invests have temporarily stopped accepting applications and redemptions.

As a result, MXT cannot acquire or redeem units in those underlying funds while the restriction remains in place. The filing gives no duration, cause or expected resumption date. It also says the Responsible Entity and Metrics Credit Partners will continue considering the audit findings and whether additional steps are required. The announcement does not state that trading in MXT units has resumed following the temporary suspension request made on 28 September.

Profit and net tangible assets move lower

MXT reported profit of A$144.931 million for FY2026, down from A$169.605 million a year earlier. Total assets declined to A$2.420 billion from A$2.460 billion, while net assets attributable to unitholders fell to A$2.404 billion from A$2.444 billion.

The Fund paid or accrued A$191.904 million in distributions, equivalent to 15.69 cents per unit, compared with 15.77 cents in FY2025. Its reported net tangible asset value ended the year at A$1.9617 per unit, down from A$2.0000. The result included a A$47.075 million net loss on financial instruments at fair value through profit or loss, partly offset by A$197.764 million in distribution income.

Private credit exposure remains concentrated in hard-to-price assets

MXT’s A$2.354 billion investment in MCP Wholesale Investments Trust represented 97.25% of total assets and was classified as a Level 3 fair value measurement at year end. The valuation is based on the underlying funds’ net asset values rather than quoted market prices, with management concluding that no adjustment was required for liquidity constraints or other valuation considerations as at 30 June.

The accounts show the sensitivity involved: a 10% movement in the underlying funds’ net asset value would have changed MXT’s profit or loss by approximately A$235.370 million, assuming other variables remained constant. The Fund had exposure to 354 investments through the three wholesale funds, with a reported weighted average credit duration of 1.6 years.

Distributions continue while underlying access is restricted

The post-year-end distribution schedule remains substantial. Directors declared 1.44 cents per unit in July, 1.46 cents in August and 1.30 cents in September, with the latest distribution amounting to A$15.945 million and scheduled for payment on 8 October. The underlying funds’ temporary halt to applications and redemptions is described as a non-adjusting event, meaning it did not alter the 30 June financial statements.

That accounting treatment is straightforward, but the investment question is less so. MXT is a closed-end listed vehicle, so investors generally exit through the ASX rather than direct redemptions. The next important disclosures are likely to be whether the underlying funds reopen, whether any further audit-related action is announced, and whether the reported net asset values continue to hold under restricted liquidity.