KPMG audit triggers $160m slash in Metrics funds
KPMG's delayed audit prompted $160m in value cuts across three Metrics funds.
Three private credit funds run by Metrics Credit Partners have been suspended after an audit by KPMG forced down the reported value of their holdings. The Real Estate Multi-Strategy Fund lost 12.2% of its value, falling to $2.22 per unit.
The Income Opportunities Trust fell 10.1% to $1.93 per unit, while the Master Income Trust dropped 2% to $1.96. The cuts come months after ASIC warned investors could be relying on inflated private credit valuations that don't reflect worsening conditions for borrowers.
Trading in all three funds stopped on Monday, preventing investors from buying or selling their units on the Australian Securities Exchange. The valuations have been revised downward because KPMG gave greater weight to downside scenarios in property and investment assessments.
- More than $160 million
- Total value stripped
- 12.2% to $2.22 per unit
- Real Estate Fund loss
- 10.1% to $1.93 per unit
- Income Opportunities loss
- 35 per cent of Metrics holding company
- Pinnacle ownership stake
Why it mattersInvestors holding these funds can't trade until suspension lifts, and their holdings are now worth significantly less than previously reported.
AustraliaAustralian investors in Metrics funds are locked out of trading, and their unit holdings are worth 2-12% less. Two of the three funds have Western Australian property exposure.
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