MA Financial Group
Annual Report 2023

20
2323

We respectfully acknowledge the Traditional Owners 
of lands across Australia and pay our respects to 
their Elders, past, present and emerging. 

Our head office is located on Gadigal land.

MA FINANCIAL GROUP LIMITED

Registered office

Principal place of business
Level 27, Brookfield Place
10 Carrington Street 
Sydney NSW 2000
Tel: + 61 2 8288 5555

MAFinancial.com

KEY CONTACT:

Jane Clapcott
jane.clapcott@mafinancial.com

MA Financial Group  |  2023 Annual Report

2

01 ABOUT

FY23 at a glance 

About MA Financial 

Independent Chair’s letter 

Joint Chief Executive Officers’ letter 

Year in review 

Sustainability report 

02 SUSTAINABILITY REPORT
03 DIRECTORS’ REPORT

Remuneration report 

Directors’ report 

Auditor’s independence declaration 

04 FINANCIAL REPORT

Statement of financial position 

Statement of profit or loss and other comprehensive income 

Statement of changes in equity 

Statement of cash flows 

Notes to the financial statements 

Directors’ declaration 

Independent auditor’s report 

05 ADDITIONAL INFORMATION

Investor information 

Glossary 

Corporate directory 

4

7

9

11

13

23

35

46

66

71

72

73

74

75

148

149

156

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160

MA Financial Group  |  2023 Annual Report

3

MA Financial Group | 2023 Annual ReportFY23 at a glance

↗↗ $9.2b

Assets under Management  
18% increase from FY22

↔↔  20.0¢

Full year dividend  
per share fully franked (¢) 
in line with FY22

↘ ↘ $269.9m

Underlying revenue1 
11% decrease from FY22

↗↗ $1.9b

↗↗ $123.1m ↘ ↘ $81.6m

Record Asset Management 
gross fund inflows  
27% increase from FY22

Cash and 
undrawn facilities2 
11% increase from FY22

Underlying EBITDA1 
24% decrease from FY22

↗↗ $178m

Underlying 
recurring revenue 
23% increase from FY22

↗↗ $110b

Finsure Managed Loans 
21% increase on FY22

FY23 acquisition

Rebranded as

↘ ↘ $41.6m

Underlying NPAT1 
32% decrease from FY22

↘ ↘ 26.0¢

Underlying earnings  
per share1 
32% decrease from FY22

↗↗ $829m

MA Money loan book 
244% increase on FY22

↗↗ $8.1m

MA Foundation donations 
since establishment 
in 2018

↘ ↘ 10.6%

Underlying Return  
on Equity1, 3  
33% decrease on FY22

1.  Underlying revenue, Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA), Net Profit After Tax (NPAT), Return on 

Equity (ROE), Earnings Per Share (EPS) and other measures of Underlying performance are not prepared in accordance with International 
Financial Reporting Standards (IFRS) and are not audited. Detailed reconciliations between the Underlying and statutory measures are set 
out in note 3 of the 2023 Financial Report and in the Group’s FY23 Investor presentation.
2.  Represents Operating balance sheet cash plus undrawn amount of working capital facility.
3.  Underlying ROE is Underlying NPAT divided by average equity for the year.

4

MA Financial Group | 2023 Annual ReportFinancial Review  
Property Summit 

Gold PartnerSTAGE 600mmPlatinum PartnerPresenting PartnerSupporting PartnersAbout MA Financial

We invest. We lend. We advise.

ASSET MANAGEMENT

$9.2b AUM

18% increase on FY22

MA Financial Group is a global alternative 
asset manager specialising in private 
credit, real estate, and hospitality. We lend 
to the property, corporate, and specialty 
finance sectors, in addition to providing 
corporate advice.

We invest in and manage $9.2 billion on behalf of our 
clients, oversee more than $110 billion in Managed 
Loans, and have advised on over $120 billion in advisory 
and equity capital market transactions since 2009. 

Today we employ more than 600 professionals across 
Australia, China, Hong Kong, New Zealand, Singapore, 
and the United States.

Our vision and purpose
Our vision is to create an environment of enterprise, 
optimism, and partnership. To place the interests of 
our clients above all else, and work together as co-
creators of long-term value. Our purpose is to create 
sustainable, long-term value for our clients.

We believe in unlimited potential
At MA Financial, unlimited potential is more than just a 
perspective. It is an unwavering belief in the potential 
of our people and our clients. We aim to harness the 
best in contemporary financial thinking to deliver 
innovative approaches to unlock value.

Asset Management
We are a global alternative asset manager specialising 
in private credit, real estate, hospitality, unique 
operating assets and private equity and venture 
capital. We also manage traditional asset classes 
including equities, bonds, and cash. We offer solutions 
for wholesale, retail and institutional investors who 
entrust us to manage $9.2 billion on their behalf.

Our investment teams have diverse skill sets and 
experience across a range of strategies and market 
conditions and are focused on delivering long-term 
growth. We seek opportunities based on sound market 
fundamentals, investing with discipline and rigour.

As active managers, we directly handle our real estate 
and hospitality assets, as well as manage loans in 
our Credit funds. We firmly believe that hands-on 
management and in-house expertise lead to improved 
risk management and stronger long-term asset 
performance for our clients.

7

MA Financial Group | 2023 Annual ReportAbout MA Financial

LENDING & TECHNOLOGY

CORPORATE ADVISORY & EQUITIES

$110b

$3.5b

Finsure Managed Loans for FY23

Transactions for FY23

Lending & Technology
Our Lending & Technology division leverages our 
combined expertise in credit advisory and credit 
investment. This division includes a technology 
advanced Residential Lending Marketplace and 
a range of lending solutions for individuals and 
businesses in Australia and worldwide. Our global 
lending ecosystem encompasses a substantial $110 
billion in loans.

Residential Lending Marketplace 
Founded in 2022 through the acquisition of Finsure,  
our Residential Lending Marketplace oversees  
$110 billion in loans for 400,000 borrowers. Integrating 
seamlessly with our residential lender MA Money and 
Middle, a digital tool aiding brokers in gathering verified 
financial data for loan applications, the Marketplace 
is instrumental in achieving our goal of becoming a 
significant player in Australia’s $2 trillion residential 
mortgage market.

Corporate Advisory & Equities
In partnership with global investment bank Moelis & 
Company, we provide financial advice for clients across 
mergers and acquisitions and strategic advisory, equity 
and debt capital markets, capital structure advisory, 
equities research and trading. 

Our specialised sector capabilities include real estate, 
credit and restructuring, resources technology and 
small to mid-cap industrial companies.

We maintain a strong strategic alliance with Moelis 
& Company, a global investment bank listed on the 
NYSE, holding 13.2% of our Group’s issued capital. 
This partnership proves mutually advantageous as 
it provides clients access to a worldwide network of 
advisory executives, fostering collaboration on cross-
border or industry-specific mandates. 

8

MA Financial Group | 2023 Annual ReportIndependent Chair’s letter

Jeffrey Browne
Independent Chair and  
Non-Executive Director

I am extremely pleased with how MA Financial Group has weathered a 
challenging year, characterised by rising interest rates, increased geopolitical 
tensions and volatile investment markets. Our business demonstrated 
its resilience and the benefits of a deliberate strategy to diversify our 
revenue streams.

MA Financial is a financial services business, founded in 2009. It operates a 
diverse range of activities. These can be simply described as: 

•  Asset Management. Specialist in alternative assets with a total of $9.2 

billion of AUM;

•  Lending & Technology. Focusing on residential mortgages and specialty 
finance sectors. These streams have grown to encompass in excess of 
$110 billion of loans; and

•  Corporate Advisory & Equities. We operate actively in our domestic market 
and in close association with global investment bank Moelis & Company.

Record inflows into our Asset Management funds, accelerating growth in 
MA Money’s loan book, and the continued growth of Finsure’s mortgage 
aggregation platform highlights that we are on track to deliver on our medium-
term growth ambitions.

Group earnings per share (EPS) in 2023 were down on the previous year. 
However, lower revenue, and its impact on EPS, can be attributed to a number 
of industry wide factors such as depressed Corporate Advisory activity and 
weak investment markets materially reducing performance fees relative to 
2022. These two factors underline the market related, and less predictable 
nature of such revenues, relative to our more predictable and growing annuity 
style revenues. Revenues that we consider to be recurring in nature increased 
23% year-on-year, driven by record inflows into our managed funds. In 2023, 
66% of the Group’s revenue was derived from sources that we consider 
recurring in nature versus 48% in 2022, thus significantly improving the 
quality of our earnings.

On the cost side of the EPS equation our deliberate investment in growth 
initiatives impacted EPS by approximately 5 cents. However, this spending is 
strategic and very much planned, and we firmly believe in the value of investing 
today to reap rewards in the future. This investment spending related to MA 
Money, our US credit investment platform, opening offices in Singapore and 
New Zealand and on growing our marketing, brand and distribution capability. 
In particular, we see growing our brand as a critically important task as we 
deepen our distribution capability and breadth, alongside innovating the nature 
and number of our investment funds and lending products.

We continued to invest in the build out of our Residential Lending Marketplace, 
harnessing the opportunity to scale into Australia’s $2 trillion mortgage market 
by leveraging the strategic strengths of the MA platform. Our investment in 
residential mortgage lender MA Money, represents a near-term earnings drag 
to the business but offers a significant opportunity to deliver highly scalable 
earnings growth over time. MA Money’s loan book accelerated over the 
year and is now at $829 million. The business remains on track to deliver an 
anticipated net profit after tax of $15 million to $20 million in 2026.

9

MA Financial Group | 2023 Annual ReportWe have also continued to grow Middle, an exciting 
digital experience for mortgage brokers and borrowers, 
which we have developed in house and believe will 
transform the efficiency in which mortgage brokers 
do business. Middle makes the process of securing a 
home loan easier and faster for both the consumer and 
their broker. This platform began gaining momentum 
in the second half of 2023, and in January 2024 over 
$500 million worth of loan applications were received 
through its digital platform. We can see Middle rapidly 
heading toward processing $1 billion in residential loan 
applications monthly. As with all technology platforms 
achieving user acceptance and scale in user volume is a 
process that takes time and money to achieve. However, 
we are very pleased and excited by the growth in volume 
and our investment in the platform.

Middle has also been an important tool in achieving 
improved user experience to mortgage brokers 
subscribing to our Finsure aggregation platform, thus 
assisting Finsure to grow the number of brokers using 
its market leading technology and services.

We are constantly balancing the need to invest for 
growth whilst delivering returns to shareholders in 
the near term. The Group is building several highly 
scalable business platforms in deep markets in Australia 
and offshore that we believe will deliver significant 
growth over the medium term. We have a track record 
that demonstrates our ability to deliver on these 
investments. In 2017 and 2018 the Group began to 
strategically invest in its Private Credit fund platform 
and domestic distribution capabilities to diversify the 
Group’s investment product and sources of funds. Fast 
forward to 2023 and our Private Credit funds received 
a record $1.7 billion of gross inflows during the year and 
57% of the Group’s gross fund inflows were received 
from domestic sources. We will continue to invest 
to scale and diversify our business for medium and 
long-term growth.

The Board’s confidence in the outlook for the business 
is reflected in its declaration of a fully franked final 
dividend of 14 cents per share taking our full year’s 
dividend to 20 cents per share, fully franked.

The growth of our Private Credit funds continues to 
bolster recurring revenue, driving record flows into the 
Group’s Asset Management funds in 2023. Assets under 
Management grew 18% to $9.2 billion over the year and 
up from $1.1 billion when we listed back in 2017.

There is a global trend towards investment in unlisted 
alternative asset classes and the attractive, consistent 
yield-based returns they can provide. This shift is being 
driven by increased savings pools, the wish for reliable 
income streams and lower investment volatility. We 
identified these dynamics several years ago when we 
began building an Asset Management business to 
focus on direct investment in Credit, Hospitality and 
Real Estate. MA Financial is well positioned as a global 
manager of alternative assets to continue to take 
advantage of these investment trends.

In October, we announced a significant milestone in the 
evolution of MA Financial Group unveiling a new strong, 
clear and more recognisable logo, and a re-branding 
of our website and intranet. We believe this refresh is 
important as we expand into new markets and strive 
to become a trusted household name in the delivery of 
financial services.

Since our inception in 2009, we have always embraced 
change, seizing new opportunities for growth and 
adjusting to market dynamics. Evolving our ‘look and 
feel’ is a natural progression in our journey, and we 
believe this investment in our brand will play a crucial 
role in positioning us for future success. Our mantra, 
‘We invest. We lend. We advise,’ succinctly describes 
our multifaceted, but complimentary activities, 
providing clarity to our clients about the breadth of 
our services.

The quality of our people remains the real key to our 
ongoing success. We’ve invested in the retention and 
development of our key personnel and talent during 
a challenging year. Acknowledging that attracting, 
developing and retaining the best people is essential to 
the Group’s long-term success. We continue to refine 
our remuneration structures to provide appropriate 
incentivisation for senior staff that aligns with positive 
shareholder outcomes.

As MA Financial’s activities grow and diversify, the 
Board continues to enhance its focus on sustainability. 
Our third annual Sustainability report reflects our 
maturity in environmental, social, and governance 
practices. In 2023, we developed a Climate Change 
Action Plan, taking steps that will enable us to 
advance our emissions reduction targets in 2024. 
Simultaneously, we made significant investments 
in cybersecurity and other risk controls, corporate 
governance, and training.

After adding three independent directors to our Board 
in recent years, I am delighted with the performance 
of the Board during 2023. Our independent directors 
bring a diverse range of skills, greatly contributing to the 
governance and oversight of MA Financial Group. I am 
extremely pleased with the blend of skills, contribution 
and the rhythm and harmony between all of our 
Directors and I believe we are positioned very well as a 
Board, to oversee the growth of the business.

I extend my gratitude to our Board, senior executives, 
and all employees for their continued hard work and 
dedication in 2023.

Jeffrey Browne
Independent Chair and Non-Executive Director

10

MA Financial Group | 2023 Annual ReportJoint Chief Executive Officers’ letter

Christopher Wyke & 
Julian Biggins

Joint Chief  
Executive Officers

Our financial results for 2023 underscore the success of our diversified 
and resilient business strategy, enabling us to invest and expand while 
delivering strong returns for our shareholders.

MA Financial Group delivered an Underlying net profit of $41.6 million, 
equivalent to 26 cents per share. This was down 32% on the 2022 result as 
difficult markets impacted transactional and performance fees, coupled 
with planned strategic investment into growth areas such as MA Money, 
Middle technology, our US credit platform, brand and our distribution 
platform. This investment represented an impact on our EPS of 5 cents per 
share. However, from the day we founded MA Financial in 2009 we have 
believed in investing today, for tomorrow.

Importantly, the Group’s recurring revenue increased 23% in 2023 driven 
by record inflows into our Asset Management funds and the ongoing 
growth of the Finsure mortgage aggregation platform. The ongoing growth 
in recurring revenue is delivering a high-quality profile for this business 
with 66% of Underlying revenue in 2023 from sources that we consider 
recurring in nature versus 48% in the year prior.

Our Asset Management division is the major contributor to Group earnings 
delivering 80% of the Group’s Underlying EBITDA in 2023. Record gross 
inflows of $1.9 billion, an increase of 27% on the previous year, were 
driven by strong growth in our two key Private Credit strategies, both 
of which surpassed $1 billion funds under management in the year, and 
investor demand for the MA Marina Fund, a new alternative asset class for 
the Group.

At our IPO in 2017 we had a total of $1.1 billion of Assets under Management 
and revenue of $107 million, yet just six years later we delivered $270 
million in revenue and had $9.2 billion of Assets under Management. 
Asset Management inflows in 2023 materially exceeded our total AUM at 
listing. It is very satisfying to us that our dual focus on achieving attractive 
earnings whilst innovating and investing for long-term growth is working.

The development of our Residential Lending Marketplace within the 
Lending & Technology division continued at pace in 2023. Finsure grew its 
managed loans by 21% on the previous year to $110 billion and the number 
of mortgage brokers on its award-winning platform increased to 3,129, 
up 19% on the previous year. Middle, our proprietary technology platform 
that materially improves the digital data collection process for mortgage 
brokers and borrowers began to gain traction in second half of 2023. In 
January 2024 over $500 million of loan applications were received on our 
digital platform and we anticipate this will increase to $1 billion monthly by 
the end of first half 2024.

The Group’s new residential mortgage lender, MA Money, grew its loan 
book by 244% to $829 million at 31 December 2023, as it built momentum 
over the year. We will continue to invest in MA Money’s product and 
platform, which is a near-term drag on earnings but represents a significant 
opportunity to scale into Australia’s $2 trillion residential mortgage market. 
We see MA Money as becoming run-rate breakeven in the second half of 
2024, and in future years becoming a strong contributor to our earnings.

11

MA Financial Group | 2023 Annual ReportJoint Chief Executive Officers’ letter

MA MONEY

MA MONEY

$500m

RMBS securitisation 
Record for a first time Australian issuer

$829m

244% increase on FY22

Our Corporate Advisory & Equities division 
demonstrated resilience in the face of challenging 
market conditions that impacted transaction timelines 
and equity capital market activity levels. Despite these 
challenges, we successfully advised on a range of 
transactions totalling $3.5 billion.

Notably, in 2023, the division strategically expanded by 
hiring senior metals and mining expertise, positioning 
itself to meet the increasing client demand for natural 
resources advisory and execution. This investment 
in executive talent during FY23, notwithstanding the 
challenging corporate advisory environment, reflects 
our ongoing confidence in the Corporate Advisory and 
Equities business. Looking forward, we anticipate an 
improving transactional landscape as evidenced by 
strengthened transaction pipelines.

New horizons – an investment in growth 
Identifying new territories and client segments for 
growth, MA Financial successfully expanded into three 
new international markets in 2023. 

The acquisition of the US-based credit asset manager, 
Blue Elephant Capital Management, and the launch of 
the MA Global Private Credit Fund, has enhanced our 
credit investment platform. The development allows 
us to offer proprietary lending opportunities in the 
US credit markets to our domestic and international 
clients, while providing us with scalable entry to the 
estimated US$5 trillion specialty finance market. 

Simultaneously, we expanded our presence in Asia, 
opening an office in Singapore to cater to our growing 
asset management client base. Further, Finsure 
recognised an opportunity to offer a comprehensive 
mortgage aggregator model in New Zealand. This, in 
turn, led to the establishment of an office in Auckland, 
marking a phenomenal year of growth.

The year also saw us establish a digital distribution 
platform in Japan, securing licensing in December 
2023. This strategic initiative opens the door to a multi-
billion-dollar market opportunity. Our goal is to redirect 
Japanese investors away from conventional cash and 
deposit products toward higher-yielding investment 
alternatives. 

The Group’s global expansion and the growth of its 
consumer-facing businesses this year provided the 
opportune moment for us to unveil a new logo and 
brand identity, and we’re delighted with the result.

As outlined by the Chair, as we expand into new 
geographies and client segments, the investment in 
our brand will enable us to increase awareness among 
a broader client base, and strategically position the 
firm for future growth.

Everything accomplished in 2023 was made possible 
by the commitment and hard work of our team, for 
which we express our gratitude. 

Additionally, we extend our appreciation to our 
shareholders for their continued trust and support 
and we look forward to keeping you informed of our 
progress throughout 2024. 

Christopher Wyke & Julian Biggins

Joint Chief Executive Officers

12

MA Financial Group | 2023 Annual ReportYear in review

Overview
For the year ended 31 December 2023, the Group recorded total comprehensive income attributable to the ordinary 
equity holders of $19.0 million (2022: $45.8 million) and profit after income tax to the ordinary equity holders of 
$28.5 million (2022: $44.9 million). Basic earnings per share was 17.8 cents, a decrease of 36% on the prior year.

Statutory results

Total income

Profit before tax

Profit after income tax

Profit after income tax attributable to 
ordinary equity holders

Total comprehensive income 
attributable to ordinary equity holders

Underlying results

Revenue

EBITDA

Net profit after income tax

Basic earnings per share (cents  
per share)

Diluted earnings per share (cents  
per share)

31 Dec 2023 
$’000

31 Dec 2022 
$’000

Movement 
%

392,770

43,479

31,079

28,517

18,997

334,998

60,969

44,855

44,855

45,754

 17% 

(29%)

(31%)

(36%)

(58%)

31 Dec 2023 
$’000

31 Dec 2022 
$’000

Movement 
%

269,876

81,565

41,599

301,799

106,720

61,436

(11%)

(24%)

(32%)

31 Dec 2023 
cents

31 Dec 2022 
cents

Movement 
%

Statutory

Underlying

Statutory

Underlying

Statutory

Underlying

 17.8 

 26.0 

 28.0 

 38.3 

(36%)

(32%)

 17.3 

 25.2 

 26.9 

 36.9 

(36%)

(32%)

Full year dividend (cents per share)

 20.0 

 20.0 

-

Non-IFRS Underlying results1
The Group also utilises non-IFRS Underlying financial 
information in its assessment and presentation of 
Group performance. When reading the Group’s results, 
we note there are some Underlying adjustments that a 
reader may find useful to understand in more detail. For 
further information on adjustments between statutory 
and Underlying results, please refer to the detailed 
reconciliation provided in note 3 of the 2023 Financial 
Report and to the explanation in the Directors’ report 
as to why the Directors believe that, when read in 
conjunction with the statutory results, the Underlying 
measures are useful to the reader.

Underlying revenue was down 11% from FY22 
driven by a reduction in performance fees versus 
an exceptionally stronger FY22 and difficult 
macroeconomic conditions for corporate advisory 
activity, making deal execution and timing uncertain. 
Recurring revenue made up 66% of the FY23 
Underlying revenue compared to 48% in FY22, 
resulting in a stronger earnings composition. Expenses 
were down 3% on FY22 despite material investment 
in strategic growth initiatives and an inflationary 
operating environment.

1.  Non-IFRS financial information is not prepared in accordance with Australian Accounting Standards and IFRS and is not audited.

13

MA Financial Group | 2023 Annual ReportYear in review  
(continued)

Our  
business

The Group experienced robust inflows across Asset Management 
funds, reaching $1.9 billion, a 27% increase on FY22. Additionally, 
Lending & Technology saw substantial growth, with Finsure Managed 
Loans up by 21% to $110 billion, and MA Money’s loan book surged 
by 244% on FY22 to $829 million. Strategic investments included 
a brand refresh for MA Financial, expansion of Private Credit 
capabilities into the US, establishment of new distribution channels 
in Singapore and Japan, and continued investment into lending 
platforms and technology. While these investments impacted FY23 
results, they position the Group for significant growth opportunities in 
the future. Corporate Advisory & Equities faced challenges in a tough 
market environment, resulting in subdued performance for the year.

The Group’s Underlying divisional measures directly align with the 
segment measures required by AASB 8 Operating Segments. Further 
information and reconciliations are provided in note 3 of the 2023 
Financial Report. The table below shows the divisions’ respective 
contributions to Group Underlying EBITDA and NPAT. Unallocated 
costs associated with the central executives and corporate support 
functions are shown separately as Corporate Services. 

31 Dec 2023
$’000

31 Dec 2022
$’000

Asset Management

82,223

103,477

Lending & Technology

14,054

15,611

Corporate Advisory & Equities

6,853

13,982

Corporate Services

 (21,565)

 (26,350)

Underlying EBITDA

81,565

106,720

Depreciation and amortisation

 (12,954)

 (11,121)

Interest expense

 (9,184)

 (7,834)

Income tax expense

 (17,828)

 (26,329)

Underlying NPAT

41,599

61,436

MA Financial Group  |  2023 Annual Report

14

Year in review (continued)

ASSET MANAGEMENT

$1.9b

Record gross fund inflows 
a 27% increase on FY22

The Asset Management division reported record gross inflows of 
$1.9 million driven by stronger demand for credit products and the 
launch of the MA Marina Fund. Assets under Management (AUM) 
grew by 18% over the year to $9.2 billion at 31 December 2023. 
Asset Management contributed 80% of FY23 Group Underlying 
EBITDA before Corporate Services. Underlying EBITDA of 
$82.2 million was down 21% from $103.5 million in FY22 due to 
exceptionally strong prior period performance fees.

Gross inflows from domestic clients continued to build 
momentum, up 81% to $1.1 billion from $609 million in FY22. This 
is reflective of the Group’s significant investment in its domestic 
distribution platform and strong client interest in credit and 
alternative asset classes.

Gross inflows from non-migration international High Net Worth 
(HNW) clients were up 27% to $647 million from $509 million in 
FY22. Flows from international migration HNW applicants were 
subdued, contributing only 1% of the total gross inflows. 

Ongoing investment in the development of an institutional 
distribution channel saw gross inflows of $173 million, up 23% 
from $141 million in FY22. 

Asset 
Management

$9.2b

0.4
0.6

1.9

2.3

4.0

$7.8b
0.3
0.7

1.8

2.5

2.5

$6.9b
0.3
0.9

1.6

2.5

1.6

$5.4b
0.3
0.5

1.3

2.2

1.1

FY20

FY21

FY22

FY23

Credit

Core Real Estate

Alternative Real Estate

Equities

PE/VC

15

MA Financial Group | 2023 Annual ReportYear in review (continued)

The key highlight for the investment strategies 
was the impressive performance of the Private 
Credit and Fixed Income investing division. 
The asset class and fixed income nature of the 
product suite resonated with investors due to 
the rising interest rate environment with 90% 
of Group net flows going into Credit related 
strategies. AUM from Credit related strategies 
grew to $4.0 billion at 31 December 2023, up 
60% from $2.5 billion at 31 December 2022. 
During the year, the MA Global Private Credit 
Fund was launched following the acquisition of 
Blue Elephant Capital Management and the MA 
Credit Income Fund was launched as a single 
access point fund for all MA credit strategies. 

The Group’s Core Real Estate asset class 
comprises retail and diversified real estate 
AUM of $2.3 billion at 31 December 2023, was 
down from $2.5 billion on the prior year due to 
the sale of Warrnambool shopping centre and minor 
valuation adjustments as the sector worked through 
an increasing interest rate cycle. The divestment of the 
Warrnambool shopping centre for $71 million delivered 
10.8% return to investors over a 10-year hold period.

The Alternative Real Estate asset class comprises 
Hospitality and Marina assets, with a combined 
AUM of $1.9 billion at 31 December 2023. During 
the year, the MA Marina Fund was launched as a 
new scalable alternative real estate strategy, initially 
acquiring the D’Albora marina portfolio. The new MA 
Accommodation Hotel Fund was also launched and 
seeded with the Vibe Docklands hotel acquisition post 
balance date. Continuing demand for hospitality assets 
saw the Redcape Group contracted to sell eight hotels 
for approximately $205 million, each at a premium to 
book value. 

The Private Equity and Venture Capital asset class 
saw the launch of the growth credit focused MA 
Sustainable Future Fund in the second half of 2023 
with strong investor demand, growing its AUM to $66 
million by 31 December 2023. 

The Equities investment division was impacted by the 
uncertainty and volatility that was widespread in the 
global equity markets throughout 2023.

AUM growth translated into strong fee revenue growth, 
with recurring revenue up 22% to $153.4 million, driven 
by a 65% increase in Credit Fund’s income to $42.4m 
and a 13% increase in base management fees to $104.2 
million. Credit Funds’ income includes non-base fee 
recurring revenue contributions from the Group’s two 
key Credit Fund strategies, the Priority Income Fund 
and Real Estate Credit. 

Transaction and performance-based revenue 
decreased 66% to $20.7 million, as a result of an 
uncertain macroeconomic environment that impacted 
transaction based activity during the year and the 
exceptionally strong performance fees in FY22.

The realised gains on the Group’s equity investments 
delivered a $2.0 million gain relative to a $10.9 million 
gain in 2022. The prior year saw a slight reduction in the 
Group’s investment in Redcape Hotel Group, however 
the co-investment holding remains just under 12%.

Expenses of $93.9 million were flat on 2022 despite 
the opening of new offices in New York and Singapore, 
reflecting strong cost management and scalability of 
the distribution platform.

16

MA Financial Group | 2023 Annual ReportYear in review  
(continued)

 Lending &  
Technology

The Lending & Technology business was the focus of major 
investment in the year as the Group continued to build a tech-enabled 
highly scalable Lending ecosystem through Finsure, Middle, Specialist 
Finance and MA Money. Underlying revenue for the Lending & 
Technology division grew 9% on FY22 to $44.7 million largely due to 
the continued growth of Finsure’s mortgage aggregation platform. 
Underlying EBITDA was down 10% to $14.1 million as the Group 
invested in the build out of its Residential Lending Marketplace, via 
residential mortgage lender MA Money and its new digital mortgage 
broker software Middle.

Financial Technology, comprising Finsure and Middle, delivered 
exceptionally strong performance in the year, growing broker 
numbers by 19% and increasing its Managed Loans by 21%, from $91 
billion to $110 billion.

Financial Technology delivered FY23 Underlying revenue of $37.3 
million underpinned by recurring subscription fees, trail commissions 
(including positive movements in the net present value of future net 
trail commissions) and activity-based upfront commissions and other 
fees. This resulted in Underlying EBITDA of $19.6 million, reflecting a 
margin of 52.5%.

The Lending platforms of MA Money and Specialist Finance grew the 
total loan portfolio by 150% to $983 million at 31 December 2023. The 
division’s underlying income reduced by 33% to $7.4 million as the 
Group’s balance sheet successfully exited a credit asset in 2022.

The significant investment in the MA Money business across people, 
platform and technology has been a drag on its contribution and 
returns in 2023. This is expected to continue into the first half of 
2024 as the business scales and positions itself to take advantage 
of the substantial opportunity for long-term growth in the residential 
mortgage market. MA Money is expected to reach a break-even 
earnings run rate in the second half of 2024.

MA Financial Group  |  2023 Annual Report

17

Corporate 
Advisory 
& Equities

Year in review (continued)

The Corporate Advisory & Equities (CA&E) division was down on 
earnings performance in 2023, declining 21% on the prior year largely 
due to challenging equity capital market (ECM) activities and Equities 
revenue impacted by softer market volumes and team rebuilding.

Corporate Advisory fees were down 24% as challenging market 
conditions made deal timing and execution highly uncertain. 
Revenue per executive of $0.8 million, was below the Group’s target 
productivity range of $1.1 to $1.3 million. Activity was broadly spread 
across the division’s core capabilities of real estate, technology and 
mid-cap industrials.

Expenses were down 13% on 2022 as average Advisory headcount 
fell from 58 to 53 staff. The expense reduction was less than the 
decline in revenue as the business focused on protecting staff during a 
challenging year in anticipation of future growth. The Group will continue 
to develop and grow the division but will remain selective in its approach 
to hiring, always paying regard to the maintenance of its revenue per 
head target range, discipline in the cost base and the consistency 
of earnings productivity in the business over the long-term. In the 
second half of 2023 the division expanded its capability into the natural 
resources sector with the hiring of two key experienced executives.

MA Financial Group  |  2023 Annual Report

18

Year in review (continued)
Financial position

Statutory total assets amounted to $3,573.9 million 
(2022: $2,246.2 million) with net assets of $461.2 
million (2022: $409.6 million) at the year ended 31 
December 2023.

The statutory consolidated statement of financial 
position includes the consolidation of residential 
mortgage-backed securitisation trusts, Specialty 
Lending trusts and Credit Funds in the Priority Income 
Fund strategies that the Group manages. These 
special purpose funding vehicles contain liabilities 
which are secured only by the assets of these entities 
with no further recourse to the Group.

Management utilises an Operating balance sheet 
which predominantly excludes the special purpose 
funding vehicles when reviewing the Group financial 
position. The Operating balance sheet presents a 
simplified view of the total economic exposure of the 
Group and the capital available to management to 
allocate. A reconciliation of the Operating balance 
sheet to the statutory consolidated statement of 
financial position can be found in the Group’s FY23 
results presentation.

31 Dec 2023 
Statutory 
$’000

31 Dec 2022 
Statutory 
$’000

31 Dec 2023 
Operating 
$’000

31 Dec 2022 
Operating 
$’000

Assets

Cash

Loans receivable

Investments

Net trail book assets

Goodwill and other intangibles 

Right-of-use assets

Other assets

Total assets

Liabilities

Borrowings

Lease liabilities

Other liabilities

Total liabilities

Net assets

Non-controlling interests

Net assets attributable to 
owners of the Company

Net tangible assets

 180,319 

 2,079,716 

 237,710 

 705,285 

 195,940 

 65,983 

 108,911 

 144,589 

 855,482 

 287,898 

 607,232 

 185,018 

 61,773 

 104,242 

 3,573,864 

 2,246,234 

 2,153,496 

 71,510 

 887,698 

 3,112,704 

 461,160 

 (63,624)

 397,536 

 219,453 

 940,089 

 64,952 

 831,606 

 1,836,647 

 409,587 

 - 

 409,587 

 240,108 

 43,108 

 6,175 

 203,622 

 44,128 

 195,939 

 65,983 

 105,113 

 664,068 

 95,030 

 71,510 

 99,992 

 266,532 

 397,536 

 - 

 397,536 

 219,453 

 98,803 

 8,959 

 210,549 

 35,866 

 185,018 

 61,773 

 73,660 

 674,628 

 95,030 

 64,952 

 105,059 

 265,041 

 409,587 

 - 

 409,587 

 240,108 

Notable movements in the Group’s Operating balance 
sheet were centred on the deployment of cash. Group 
cash reduced in the year as capital was allocated to the 
Group’s investment in consolidated Credit Funds and 
the acquisition of Blue Elephant.

Net tangible assets decreased during the year as a 
result of the utilisation of cash to fund the acquisition 
of Blue Elephant and the recognition of the related 
intangible assets upon acquisition. 

The year saw a high level of rotation of both short-
term growth investments and long-term strategic 
investments. This dynamism underpins the ability of 
the Group to support future growth and is reflected in 
the recycling of over $100.0 million of prior investments 
and the reinvestment of a similar amount to support 
new and existing fund growth and strategic initiatives. 

19

MA Financial Group | 2023 Annual ReportYear in review (continued)
Financial position

The Group’s investments, including strategic and co-investment positions, are shown in the table below

Lending (MA Money & Specialty Invested Capital)

Co-investments

Private Credit funds

Redcape Hotel Group (RDC)

Other equity investments

Total investments

31 Dec 2023 
Operating 
$’000

 17,038 

 51,385 

 87,635 

 49,295 

 4,444 

 209,797 

31 Dec 2022 
Operating 
$’000

 8,167 

 66,730 

 84,118 

 57,086 

 3,407 

 219,508 

Key movements in the Group’s investments relate to:

•  Lending Invested Capital increase reflects growth of MA Money

•  Redcape change driven by a net increase in ownership, offset by statutory movements and 

distributions received

•  Redcape investment valued at $76 million based on 31 December 2023 unit price of $1.4951.

20

MA Financial Group | 2023 Annual ReportYear in review (continued)
Financial position

Capital management
The Group manages its capital with the aim of 
ensuring that it will be able to continue as a going 
concern while maximising the return to shareholders 
through the optimisation of the debt and equity 
capital balances. Fundamental to this is maintaining 
a strong balance sheet, which supports the business 
through economic shock but also facilitates attractive 
investment opportunities.

During the year the Group declared an interim dividend of 
6 cents per ordinary share (2022: 6 cents). Subsequent 
to year end, the Directors have resolved to pay a final 
dividend of 14 cents per share for the FY23 year (2022: 14 
cents), consistent to full year dividends paid in FY22.

In December 2023, the Group successfully increased the 
size of its revolving working capital facility from $40.0 
million to $80.0 million. The facility upsize will provide 
the Group with additional liquidity and flexibility. As of 31 
December 2023, the facility was undrawn. Furthermore, 
the Group is currently in the process of refinancing 
its existing MACI note ($30.0 million) and MA IV note 
($40.0 million), which are set to mature in May 2024 and 
September 2024 respectively.

The Group recognises that debt is an important 
component of a balanced capital structure. Whilst the 
Group utilises both recourse and non-recourse debt to 
fund its growth objectives, we will continue to adopt a 
prudent approach to the use of debt capital.

This approach to debt in conjunction with the strong level 
of average cash holding throughout the year is indicative 
of a consistent approach in managing the Group for the 
long-term and we will remain patient and prudent when 
deploying capital. Fundamental to this is maintaining 
a strong balance sheet, which not only stands us in 
good stead through economic uncertainty but can also 
facilitate attractive investment or business opportunities.

Risk management
The Group faces a range of risks to achieving its financial 
objectives, the most material of which are summarised 
below. This summary is not a comprehensive outline 
of every risk associated with the Group’s financial 
prospects, and other risks may emerge. The Group’s 
overall risk management framework is summarised in 
its Corporate Governance Statement, available on its 
website. As noted there, the framework is supported by 
a strong risk culture with an emphasis on accountability 
and diversity of thought. 

21

MA Financial Group | 2023 Annual ReportYear in review (continued)
Financial position

Cyber risk
The Group depends on a range of information 
systems which carry a risk of unauthorised use or 
external compromise. This could result in the loss or 
disclosure of confidential information, disruption to 
operations, poor client service, regulatory sanctions, 
reputational damage and financial loss. The volume 
and sophistication of cyber threats facing businesses 
in Australia continues to grow.

The Group maintains an experienced corporate 
technology team which manages its core technology 
infrastructure and supports business operations, 
including by assessing proposed new systems 
and software. The team continually improves the 
maturity of the Group’s cybersecurity controls, which 
includes penetration testing by third-party experts 
and continual threat monitoring. The team’s work is 
supported by documented policies and procedures, 
and training for staff on related risks. A comprehensive 
IT Disaster Recovery Plan is in place to promote 
effective incident response, and the Group has direct 
access to a leading Sydney-based cyber incident 
response advisor to help it mitigate and recover from 
any incident it fails to prevent.

Regulatory change
The Group is subject to regulatory obligations related 
to its activities, including those that affect sectors 
in which it invests. Along with the inherent risk of 
breaching requirements, there is a general risk that 
new or changed regulations could require significant 
spending on compliance, contribute to a higher risk of 
non-compliance or impact on the profitability of certain 
lines of business.

The Group maintains an experienced, well-resourced 
team of legal and compliance professionals who work 
directly with the managers of the Group’s businesses 
to help ensure these compliance requirements are 
met and who report on legal and regulatory risk to 
the Boards of our licenced entities and to the Group’s 
governance structures. This team also keeps a 
watching brief for regulatory change in the jurisdictions 
where it operates, supported by third party advisors.

Investment risk
The Group’s Asset Management division oversees 
institutional, wholesale and retail investments across 
a range of asset classes. This exposes the Group to 
associated operational and market risks, which can 
result in investment returns that compare poorly to 
expectations, benchmarks and peers. In turn, a poor 

investment track record may affect the Group’s ability 
to attract and retain clients, which can reduce overall 
assets under management and materially affect long-
term revenues and earnings.

The Group manages this risk through the careful 
selection of investment strategies, and clearly 
defined, effective processes for due diligence, 
investment review and decision making, and portfolio 
management. Client reporting puts investment returns 
in context and explains the outlook.

Volatility in levels of business activity
Some of the Group’s lines of business are inherently 
subject to more revenue volatility. In particular, the 
level of activity in our Corporate Advisory & Equities 
division reflects clients’ appetites to raise finance, 
take part in mergers and acquisitions, and engage in 
equities sales and trading, which is influenced by a 
range of factors including economic conditions and 
sentiment. Overall, the Group has diversified sources 
of income and has limited dependency on inherently 
volatile revenues.

Treasury risk and debt management
The Group must manage the funding needs of its 
overall corporate activities, its distinct businesses 
and also the liquidity needs of the investment funds it 
manages. Failure to adequately project these funding 
requirements and to manage working capital and debt 
facilities could impact business growth, performance 
and reputation. Conversely, effective management of 
this risk can produce considerable savings and enable 
business growth.

To control the treasury risk it faces and ensure 
effective debt management, the Group has built 
systems and processes to give appropriate visibility 
and oversight of funding needs and financial 
management across the Group.

Operational risk
The Group defines operational risk as that resulting 
from inadequate or failed internal processes, people and 
systems or from external events. Broad operational risk 
is present in all of the Group’s activities and is managed 
in the first instance through the controls built into the 
Group’s systems and processes and by the active 
oversight and management of business executives, 
supported by the Group’s risk function. The Group 
recognises that operational risk, in its many forms, is an 
inherent feature of its business profile and is committed 
to managing it in line with its Risk Appetite Statement.

22

MA Financial Group | 2023 Annual ReportNext Generation  
Women in 
Finance 

Sustainability report

We recognise integrating Environmental, Social and Governance (ESG) factors into our 
operations, investment decision-making and asset ownership is key to our purpose, which is to 
create sustainable, long-term value for our clients.

While there is no single correct approach to ESG 
integration, we believe doing the right thing for our 
clients, our people and our communities leads to better 
results for all stakeholders. ESG considerations can 
provide a greater understanding of the investment 
risks and opportunities that contribute to evaluating 
long-term value for our clients.

We also recognise that ESG issues evolve and mature 
and are committed to understanding the interests and 
expectations of all our stakeholders. We try to take 
a practical approach to our sustainability initiatives, 
which recognise our scale and our growth aspirations.

In 2023, we progressed our sustainability framework 
and reporting, and refreshed our assessment of the 
most material aspects of sustainability to our business 
and our stakeholders.

Materiality Matrix

This report provides insight into our sustainability 
procedures and practices, progress made in 2023 and 
outlines focus areas for future development. The Group 
reports with reference to the Global Reporting Initiative 
(GRI) Standards to create the framework and define its 
approach to sustainability.

Materiality assessment
We last undertook an ESG Materiality Assessment 
in 2021, to identify the ESG issues which most 
influence decision-making about our Group and so 
prioritise these issues for management and reporting. 
We recently refreshed the Materiality Assessment 
which involved a survey of internal stakeholders and 
a forward-looking consideration of the issues most 
significant to our Group strategy. As our businesses 
scale and the Group evolves, the material issues are 
likely to change. We expect to reassess materiality 
every two to three years.

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I
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L

Diversity and inclusion

Customer data protection

Stakeholder engagement 
and community giving

Cyber security and privacy

Risk mitigation

Anti-corruption

Compliance

Indigenous engagement, 
rights and reconciliations

Waste recycling and pollution

Climate risk

Energy and air quality

Product responsibility

Wellbeing, health and safety

Responsible marketing

Anti-bullying and workplace 
harrassment

Board skills and composition

Values, purpose and 
accountability

Forced and child labour

Ethical AI

Public policy

Intellectual property

Fair trading

Supplier environmental 
performance

Grievance and remedy

Water

Nature and biodiversity

Supplier social performance

Less Important

Important

Material

Most material

Forward looking strategic significance

Governance and business model

Social

Environmental

25

MA Financial Group | 2023 Annual Report 
 
 
 
Sustainability report

Stakeholder engagement 
As a diversified Group, our stakeholders are wide 
ranging and have a distinctive set of interests and 
priorities. They include shareholders, financers, 
employees, fund investors, clients, governments and 
regulators, and industry groups. We engage with key 
stakeholders through a range of channels. 

Critical to ensuring our stakeholder engagement is 
relevant and impactful is understanding the objectives 
and areas of focus for each stakeholder group. As a 

diversified Group involved in investing, lending and 
advising, we understand that trust, transparency 
and responsible behaviour are critical to building and 
maintaining relationships. As our business evolves, 
we will ensure our forms and channels of stakeholder 
engagement continue to facilitate relevant insights and 
transparency on our approach to sustainability.

Last year we shared an assessment of the key focus 
areas for our stakeholders. We will continue to assess 
and refine these areas of focus. 

Sustainability framework
Our sustainability framework contains six pillars and illustrates our approach to sustainability. These were set in 
2021 and we consider them to remain appropriate and relevant today and in the future.

TALENT DEVELOPMENT  
AND WELLBEING

STRONG GOVERNANCE AND 
ETHICAL BEHAVIOUR 

SUSTAINABLE BUSINESS 
MODEL

•  Attracting, retaining, 

motivating, engaging and 
developing our workforce 

•  Supporting the health, safety 

and well-being of our people

•  Creating sustainable value 

• 

through effective governance, 
strong ethical practices and 
accountability 

•  Overseeing internal and 
external compliance 

•  Embedding systemic and 

active risk management in our 
financial services 

Incorporating sustainability 
factors into our businesses, 
operations, products and 
financial services offerings 

DIVERSITY AND INCLUSION

ENVIRONMENTAL IMPACT

SOCIALLY RESPONSIBLE 
BEHAVIOUR

•  Promoting and maintaining a 

•  Understanding the impact 

diverse and inclusive workplace

of climate change

•  Safeguarding the privacy and 
security of our customers 

•  Minimising our environmental 

•  Protecting human rights in 

footprint focusing on energy 
and emissions, waste, 
and water management

our value chain

•  Contributing to our community

We are pleased to provide an update on our approach to each of these six pillars.

26

MA Financial Group | 2023 Annual ReportTALENT DEVELOPMENT AND WELLBEING 

Our people
Our people are our business. A combination of insight, 
attitude and integrity is our unique formula for success.

By focusing on what matters, we stay inspired, 
challenged and driven to co-create sustainable, long-
term value with each other and our clients. During 2023, 
we reflected on our values and selected the following 
four drivers that motivate our decisions and actions.

OUR FOUR KEY DRIVERS

CHARACTER MATTERS

We’re powered by good people with the  
right attitude and values.

BETTER WAY?

We’re contemporary thinkers who  
challenge norms, but respect experience.

EDGE HAS A FORMULA

Our edge comes from hard, dedicated,  
diligent work and experience.

CO-CREATORS OF VALUE

Success isn’t a perfect process – we’re 
there for the ups and downs, and when 
our clients win – we win 

We have an unwavering belief in the potential of our 
more than 600 people. We are committed to providing 
a work environment where employees feel recognised, 
motivated, and have a strong sense of belonging. 
In our experience, open and respectful behaviour 
between colleagues is critical to everyone achieving 
their potential.

We aim to bring an optimistic mindset which always 
strives to deliver excellence.

We seek to recognise the hard work and commitment 
of our people and provide fair and practical initiatives 
and benefits to support our employees. The range of 
benefits include:

•  24/7 access to health advice via Sonder Wellbeing 

and an Employee Assistance Program

•  Paid parental leave
•  Access to community sports and cultural events
•  2 X Wellbeing days each year
•  Comprehensive health checks for executives
•  Annual flu vaccines
•  Coffee and after-hours meal service 

Developing our employees
In 2023 we built on the MA Academy programme 
and refined the curriculum, focusing on our 
emerging leaders.

We remain committed to fostering strong links 
with the student community. Our work experience, 
internship and graduate placements provide 
rewarding opportunities for high school and university 
students from a range of backgrounds and faculties. 
Supplementary to the MA Academy, select employees1 
completed an average of 10 hours of individual training 
in 2023 on topics including financial services, cyber 
security and data protection, and key policies. Division 
specific learning is also provided. Select senior 
executives underwent 20 hours of training. 

Regular performance reviews and career development 
discussions ensure employees have opportunities to 
progress, upgrade skills and pursue their interests 
within the Group.

1.  Refers to eligible employees from core business divisions Asset Management, Lending & Technology, and Corporate Advisory & Equities.

27

MA Financial Group | 2023 Annual ReportSustainability reportSTRONG GOVERNANCE AND ETHICAL BEHAVIOUR

The Group is focused on delivering long-term value 
to our clients and partners, our people and our 
shareholders. As set out in our Corporate Governance 
Statement, the Board is responsible for overseeing the 
management of the Group, promoting the long-term 
interests of the Group and its shareholders, and setting 
the required standards of culture and conduct. 

The Board is comprised of six Non-Executive Directors 
and three Executive Directors. Four of the six Non-
Executive Directors are independent; two are not so 
considered due to their association and employment 
by Moelis & Company Group LP which is a major 
shareholder of MA Financial. 

Governance of ESG and risk management

The Nomination and Remuneration Committee assists 
the Board to achieve the optimal mix of skill and 
experience to ensure effective decision making and 
stewardship. The other permanent standing committee 
is the Audit and Risk Committee (ARC) which is 
focused on the integrity of financial statements, the 
Group’s financial controls and its risk management 
framework. Each Committee is chaired by an 
Independent Non-Executive Director and comprises of 
only Non-Executive Directors, the majority of which are 
Independent Non-Executive Directors.

MA Financial Group Limited Board
Oversees the management of ESG risks and opportunities

Impact
Oversees the 
management of the 
company, including 
environmental and 
social impact

Policy
Approves policies, 
including ESG and risk 
management policies

Risk Management
Annually reviews ARC 
recommendation on 
soundness of risk 
management framework, 
including ESG risks 

Disclosure
Approves the 
Sustainability Report 
incorporated in 
annual reporting

The Board and the Board’s two permanent standing Committees engage on ESG topics relevant to their charters. 
Audit and Risk Committee 
Nomination and Remuneration Committee

Executive
Responsible for assessing ESG risks and opportunities, maintaining and building further a sustainable business model, 
managing each of the identified material topics, and reporting to the Board as appropriate 

The Board approves ESG-related policies and 
oversees the performance of the executive in terms of 
identifying and managing ESG risks and opportunities. 
There is a specific ESG Steering Committee in our 
Asset Management business, reflecting its scale and 
distinct and elevated ESG profile.

Similarly, risk management is a fundamental aspect of 
good governance and a regulatory responsibility. The 
Board is responsible for ensuring the Group maintains 
a risk management framework which identifies all 
areas of potential risk. It reviews the balance between 
realising business opportunities and remaining 
within the risk tolerances set out in its Risk Appetite 
Statement, which includes sustainability risks. The 
Board is supported by the ARC which provides an 
annual review assessing the adequacy of the risk 
management framework.

28

MA Financial Group | 2023 Annual ReportSustainability reportOur people confirm periodically their compliance 
with the Code of Conduct and are expected to abide 
by the highest standard of ethical conduct in their 
relationships with each other, investors, competitors, 
suppliers, and the public. We expect senior leaders 
to model and positively reinforce our values. A 
comprehensive framework of additional policies that 
supplement and support the Code of Conduct can be 
found on our website.

MA Financial’s Business Leaders have executive 
responsibility for risk management supported by 
our core principle that risk management is the 
responsibility of everyone.

The Chief Operating Officer and Risk Director are 
responsible for coordinating the risk management 
framework, for promoting an effective risk culture, and 
for developing awareness of risk management across 
the Group. The Senior Executive Risk Committee 
meets to discuss key risk themes and promotes a 
positive risk culture.

Code of Conduct
The Code of Conduct helps support effective 
governance, including ESG and risk management 
responsibilities. It applies to all Directors, officers and 
employees of the Group and sets out expectations 
for how we act in the ordinary course of our 
business activities.

2023 was the first full year of the MA Sustainable Future 
Fund. It provides wholesale investors with exposure to 
a diversified portfolio of secured loans to established, 
growth-stage companies which support a more 
sustainable future through products and services aligned 
to the UN Sustainable Development Goals. The Fund 
funded a number of businesses in 2023 including: 
•  a provider of electric vehicle ownership plans to 

rideshare drivers

•  a metre solar PV systems operator, and
•  an in-home/telehealth after-hours medical care 

consultations provider

MA Financial Group  |  2023 Annual Report

29

Sustainability reportSUSTAINABLE BUSINESS MODEL 

As we continue to invest, lend and provide corporate 
advice, maintaining a sustainable business model will 
help enable our success. 

to be considered in pre-screening, and to ensure a 
consistent approach when presenting investment 
opportunities for review and decision. 

We believe our diversification provides us with a 
more stable platform from which we can generate 
value for our stakeholders. It also equips us better 
to think and act responsibly and for the long term. 
This diversification also means we need to assess 
our businesses individually, and as a portfolio, to 
gain greater visibility of how risks affecting one 
business could impact on the Group’s wider reputation 
and resources.

Operating a sustainable business model involves 
resilience, it requires incorporating ESG factors 
into our decision-making to ensure we minimise the 
related risks and take advantage of the opportunities. 
This challenge is especially relevant in our Asset 
Management division where we specialise in private 
credit, real estate, hospitality, unique operating assets, 
private equity and venture capital. We have operational 
and financial control of many of our real assets and we 
directly originate and manage many of the loans we 
hold in our Credit Funds. We often take a ‘hands-on’ 
approach to managing these assets. This gives us a 
strong position to exercise responsible stewardship by 
minimising environmental impacts, promoting strong 
governance arrangements and ethical conduct towards 
customers, suppliers and the communities in which 
these assets are based. We believe this is fundamental 
to unlocking the true value of our investments. 

In 2023, we introduced new Responsible Investment 
policies for each of the asset classes into which we 
invest, bringing more definition to the ESG factors 

The integration of ESG into Asset Management 
activities is overseen by an ESG Steering Committee 
whose members meet quarterly. The main initiatives 
planned for 2024, or already underway, include 
responding to new mandatory climate reporting 
requirements, improving reporting from the supply 
chain on modern slavery risks, and implementing a 
sustainability roadmap for the Real Estate asset class.

Our Asset Management division is a signatory to the 
UN Principles for Responsible Investment and recently 
completed its first assessment exercise, providing 
another framework against which to assess our 
progress with ESG integration.

Our 2023 investment in marinas was an example of 
the importance of integrating ESG considerations 
into our investment decisions. The diligence 
considered climate impacts on the business model, 
assessed environmental risks from operations and 
the organisation’s practices to mitigate and manage 
environmental risks.

Supplier Code of Conduct
MA Financial is dedicated to treating our suppliers 
fairly and transparently. We value the crucial role they 
play in promoting sustainable business practices. Our 
Code ensures compliance with laws and regulations, 
requiring suppliers and their contractors to address key 
risks such as health and safety, cybersecurity, privacy, 
labour laws and human rights.

MA Financial Group  |  2023 Annual Report

30

Sustainability reportDIVERSITY AND INCLUSION

Diversity at MA Financial involves creating a work 
environment which allows all our people to meet 
their potential and is underpinned by respecting and 
valuing a wide range of differences including gender, 
ethnicity, disability, age, religion, sexual orientation, 
and educational and work experience. Our Diversity 
Policy (available on our website) outlines our diversity 
principles, commitment to diversity objectives and 
provides a framework for advancing our diversity goals. 

Our diversity principles

On an annual basis, management monitors and reports 
to the Board on our advancement against these 
objectives with the Board assessing our progress 
against targets. Table 2 illustrates our year-on-year 
movements on gender diversity at different levels of 
the organisation.

•  Recruit, retain and develop an appropriately diverse and skilled workforce and Board to facilitate achieving or exceeding 

business objectives

•  Leadership team proactively demonstrating a commitment to diversity through modelling inclusive behaviour

•  Providing a work environment that values and fully utilises the perspectives and experiences of all employees and directors.

Table 1 – Diversity objectives

Objective/Quantitative targets

Baseline (2021)

2023

Achieve and retain a 30% female representation at Board level

25% female/75% male

33% female/67% male

Achieve and retain a 50% female representation in the business

48% female/52% male

47% female/53% male

Achieve and retain a 30% female representation in senior executive positions1

23% female/77% male

34% female/66% male

Achieve a Culturally and Linguistically Diverse (CALD) status of 40%

CALD = 35%

CALD = 52%2 

Table 2 – Gender diversity across organisation

Level

Gender

2020

Workforce

Female

Male

Senior executives

Female

Board

Male

Female

Male

33%

67%

24%

76%

29%

71%

2021

48%

52%

25%

75%

25%

75%

2022

2023

YOY change

48%

52%

28%

72%

33%

67%

47%

53%

34%

66%

33%

67%

↘↘ 1%

↗↗  1%

↗↗  6%

↘↘ 6%

↔↔  0%

↔↔ 0%

1.  Senior executives include all employees with a title of Vice-President, Executive Director, Managing Director or functional equivalent.
2.  Information provided by employees when onboarding or through self service in our HR Information System

31

MA Financial Group | 2023 Annual ReportSustainability reportMA Financial encourages improved gender diversity 
and inclusive leadership practices across the sector. 
In 2023, MA Financial hosted a networking event ‘Next 
Gen Women in Finance’ inviting over 120 young female 
professionals to engage in discussions about inclusive 
culture and driving change. This followed a highly 
successful inaugural event in 2022. 

We are committed to fair and equitable remuneration. 
Our annual remuneration review and discretionary 
bonus setting process includes an analysis and 
elimination of any identified gender pay gaps 
for comparable roles. The process assesses the 
occurrence of unusual gaps which are not accounted 
for by factors such as experience, skills, performance, 
and others and removes them as applicable.

ENVIRONMENTAL IMPACT 

Minimising the impact our firm has on the environment 
is important to us, especially the impact from our 
direct operations.

Climate impact
In 2023, the Group completed, for the first time, a 
measurement of the environmental emissions for 
which we were directly responsible in 2022. We also 
committed to two targets: to deliver net zero emissions 
by 2050 for our direct operations and reduce Scope 1 
and 2 emissions intensity per employee by 50 percent 
by 2030.

To help achieve these targets, we completed in 2023 
a Climate Change Action Plan (CCAP). This exercise 
identified office energy use as a significant source of 
emissions and recommended transitioning to lower or 
zero-carbon energy supplies. We achieved this before 
the end of the year for both of our main Sydney and 
Melbourne offices. This change alone puts us on track 
to achieving our 2030 target, but its timing means the 
positive results accrue mostly from 2024. As a result 
of this dynamic, plus an increase in business air travel, 
the overall emissions figure for our direct operations in 
Australia was 2,724 t CO2-e. Our Scope 1 and 2 intensity 
per Australia-based employee was 0.7 t CO2-e.1

Health and safety
The Group aims to create and maintain a safe and 
healthy workplace, and ensure all activities undertaken 
protect the health and safety of our employees, 
suppliers, visitors and clients as applicable. Our Work 
Health and Safety (WHS) Policy sets the fundamental 
principles that govern our approach to WHS 
management. In 2022, we established a Work Health 
and Safety Committee with a mandate to promote 
safety and health and to consult on issues relevant to 
health, safety, and the welfare of workers. MA Financial 
tracks Lost Time Due to Injury and had two reportable 
incidents in 2023. 

The increase in emissions is largely as a result of 
increased air travel, noting that the baseline year was 
artificially low due to ongoing COVID impacts and 
that in 2023 MA Financial has pursued numerous 
growth initiatives overseas. Notwithstanding the 
increase in emissions, we remain confident in reduced 
emissions intensity in 2024 owing to the initiatives 
described above.

The Group will continue to refine and act on its CCAP, 
in conjunction with its responsibilities under Australia’s 
emerging regime for mandatory climate reporting.

Mandatory climate reporting
MA Financial has monitored the development in 
Australia, through 2023, of draft new mandatory 
reporting standards on climate-related disclosures. 
We plan to advance in 2024 a set of workstreams 
which will enable compliance both for our direct 
operations and in respect of investment funds in scope 
of the standards. To a large extent, this focuses on 
measurement of Scope 3 emissions. 

1.  Fuller details of the methodology and assumptions will be available in an updated version of our Emissions Disclosure.

32

MA Financial Group | 2023 Annual ReportSustainability reportSOCIALLY RESPONSIBLE BEHAVIOUR 

MA Financial recognises the impact we have on 
the communities we operate in and other external 
parties. Measuring our ESG impact helps us continue 
to increase our positive impacts and maintain 
consistently responsible business practices.

Our vision is to create an environment of enterprise, 
optimism, and partnership. To place the interests of our 
clients above all else, and work together as co-creators 
of long-term value. We know that to achieve this vision 
we need to be trustworthy in our conduct and decision 
making. We need to be consistent, responsible and 
responsive to stakeholder feedback. Whilst we believe 
this is core to our culture and daily behaviours, we call 
out some specific key areas of focus below.

Privacy
The Group respects data privacy and recognises how 
critical our actions in handling data are in building 
and maintaining trust with current and prospective 
stakeholders. We are committed to measures which 
protect the security of personal data and confidential 
information that is collected, stored, processed, or 
disseminated. The Group’s ‘Technology and Data 
Handling Policy’ established specific requirements 
for the use of all computing and network resources 
within the business in a responsible, ethical, and 
compliant manner. This, along with the Group’s Privacy 

Policy, also covers the key principles of data privacy, 
compliance requirements, privacy and personal rights 
and technology use guidelines within the Group. They 
are reviewed for relevance and accuracy annually.

We invested significantly in uplifting cyber practices 
and increasing employee cyber awareness during 
2023. This remains an area where we have further 
planned initiatives in 2024 and will remain an area of 
focus for management and the Board. 

Human rights
MA Financial conducts its businesses to high levels of 
ethical and professional standards in accordance with 
relevant laws in the countries that we operate. It has 
no tolerance for any form of modern slavery within its 
business and supply chain.

The Group’s approach to modern slavery is set out 
in its Modern Slavery Policy and the Modern Slavery 
Statement (dated June 2023), available on the 
Group’s website.

Tier 1 risk assessments of the Group’s supply chain 
were conducted in 2023 and have not identified 
any instance of modern slavery or areas of 
significant concern.

All other objectives set out for 2023 in the Modern 
Slavery Statement have been met.

MA Financial is the principal partner 
of the Sydney Contemporary Art Fair, 
Australasia’s premier art fair. This 
year marked the inception of the MA 
Art Prize, an acquisitive award valued 
at $10,000. The prize is granted to 
an emerging artist whose work is 
showcased at Sydney Contemporary, 
and we extend our congratulations 
to Corban Clause Williams, the 
deserving winner.

As the principal partner of Sydney 
Contemporary, we’re proud of the 
role we play in providing this platform 
for emerging and established artists. 

MA Financial Group  |  2023 Annual Report

33

Sustainability reportMA Financial is a proud partner of the Ocean Lovers Festival 
– an annual celebration of ideas, art, music, and impactful 
actions, showcasing the latest innovations and technology 
dedicated to maintaining a healthy ocean. Our investments in 
marina assets underscore our commitment to ocean health and 
sustainability, aligning seamlessly with the festival’s mission to 
engage communities and showcase innovative solutions.

Community investment
At MA Financial, fairness and generosity are 
fundamental to our ethos. In 2018, we established 
the MA Foundation with a clear mission: to champion 
community initiatives that resonate with the 
values and interests shared across our Group. Our 
Foundation’s vision, impactful partnerships, robust 
staff engagement, and a steadfast commitment to 
the broader ESG agenda, guides our community 
investment approach. 

To date, the Foundation has donated over $8.1 million 
to more than 35 charities. The Foundation has three 
Community Partners: GO Foundation, Backtrack and 
Mirabel Foundation. Through the collaborative efforts 
of our MA Foundation Committee and matched giving 
programs, we channel our resources towards causes 
that hold significant importance to our staff members. 

Responsible Conduct
We operate a wide range of businesses where we 
recognise duties to act responsibly, including those 
noted here.

Consumer credit: MA Financial is committed to 
responsible lending practices. For example, MA 
Money will only make home loans which are suitable 
for borrowers, having reference to their requirements 
and objectives and their ability to repay. Our Specialty 
Lending business is involved in making legal 
disbursement loans, where it enforces distribution 
conditions and restrictions to help ensure loans are 
made only to suitable customers. 

Global Credit Solutions (ex-consumer credit): The 
GCS team considers a set of ESG factors when initially 
screening potential loan counterparties and also 
when carrying out a fuller assessment of the lending 
opportunity. This helps avoid funding projects with 
harmful environmental or social impacts. In addition, 
the team has zero appetite for predatory lending 
which seeks to create or take undue advantage of 
financial hardship.

Hospitality: Our Hospitality platform, MA Hotel 
Management, manages several hospitality funds 
including Redcape Hotel Group, and recognises its 
obligation to ensure customers experience safe and 
sociable venues, and responsibly enjoy the beverage 
and entertainment offerings. MA Hotel Management’s 
approach to the service of alcohol, problem gaming 
and harm minimisation is articulated in its Responsible 
Service Policy, available on the Redcape website.

Redcape also supports local communities and 
their initiatives through its ‘Publinc Communities 
Programme’ which has an objective of enriching local 
communities through lasting impact.

Looking forward
We are proud of the progress we have made in 2023, 
and our continued focus on the six key pillars of our 
Sustainability Framework. The development of our 
practices and procedures within these pillars, and our 
disclosure around them, will continue to expand over 
time. We look forward to sharing our sustainability 
progress with our key stakeholders over future periods.

34

MA Financial Group | 2023 Annual ReportSustainability reportSydney 
Contemporary  
Art Fair 

Directors’ report

The Directors of MA Financial Group Limited (Company) submit their report together with the consolidated 
Financial Report of the Company and its subsidiaries (Group) for the year ended 31 December 2023.

The names and details of the Directors of the Company during the financial year ended 31 December 2023 and as 
at the date of this report are listed below. Directors were in office for the entire year, unless otherwise stated.

Jeffrey Browne 
Andrew Pridham 
Alexandra Goodfellow 
Simon Kelly 
Nikki Warburton 
Kenneth Moelis 
Kate Pilcher Ciafone 
Julian Biggins 
Christopher Wyke 

Independent Chair and Non-Executive Director
Group Vice Chair
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Non-Executive Director
Non-Executive Director
Joint Chief Executive Officer
Joint Chief Executive Officer

Jeffrey Browne

Independent Chair 
and Non-Executive Director
Appointed 27 February 2017

Andrew Pridham

Group Vice Chair
Appointed 25 May 2010

Experience and expertise
Jeffrey was a senior executive at Nine Network Australia 
from 2006 to 2013, including Managing Director from 2010 
to 2013. He was previously Chair of Carsales.com. Jeffrey 
holds a Degree in Arts from La Trobe University, and a 
Degree in Law from Monash University, Melbourne. 

Experience and expertise
Andrew has served as a Director since the formation of 
MA Financial Group Limited. He was Chief Executive 
Officer from 2009 to February 2020 and has 30 years’ of 
experience in investment banking. Andrew was one of the 
founders of the Company in 2009.

Other directorships and appointments
Chair of Premoso Pty Ltd (owner of the business of 
Walkinshaw Automotive Group)
President of Collingwood Football Club

Special responsibilities
Chair of the Board (appointed February 2017)
Member of the Audit and Risk Committee 
(appointed February 2017)
Member of the Nomination and Remuneration Committee 
(appointed February 2017)

Interests in the Company
Shares: 150,000

Other directorships and appointments
Chair of Sydney Swans Limited
Adjunct Professor at University of South Australia

Special responsibilities
Focused on the development and implementation of MA 
Financials Group’s strategy and promotion of the Company 
Director of MA Foundation (appointed  
November 2017) 

Interests in the Company
Shares: Andrew holds 39,285 shares as well as a 
beneficial equity interest in 17,930,390 shares as a result 
of his holdings in the Existing Staff Trusts. As a result of 
Andrew’s ownership of the Trustee of one of the Existing 
Staff Trusts, Andrew has a deemed relevant interest 
in 19,865,799 shares.

Restricted and Loan Funded shares: 611,026

37

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Alexandra Goodfellow

Independent Non-Executive  
Director
Appointed 19 August 2020

Kenneth Moelis

Non-Executive Director
Appointed 7 July 2010

Experience and expertise
Alexandra is Vice Chair of Korn Ferry Australasia and 
has 35 years’ experience in executive search and 
human capital consulting. Advising clients at Board, 
CEO and C-suite level, assisting with organisational 
strategy, assessment and succession, executive search 
and leadership development.

Other directorships and appointments
Vice Chair of Korn Ferry Australasia
Non-Executive Director of Sydney Swans Limited

Special responsibilities
Chair of the Nomination and Remuneration Committee 
(appointed August 2020)
Member of the Audit and Risk Committee 
(appointed December 2022)

Interests in the Company
Shares: 32,371

Experience and expertise
Ken is Chair and Chief Executive Officer of Moelis & 
Company and has 40 years’ experience as a banker and 
executive. Prior to founding Moelis & Company, Ken was 
President of UBS Investment Bank and previously, Head 
of Corporate Finance at Donaldson, Lufkin & Jenrette. 
Ken began his investment banking career at Drexel 
Burnham Lambert. Ken holds a Bachelor of Science in 
Economics and an MBA from the Wharton School at the 
University of Pennsylvania.

Other directorships and appointments
Chair and CEO of Moelis & Company Group LP (Moelis 
& Company)
Non-Executive Chair of the Board of Directors, 
Moelis Asset Management
Member, Wharton Board of Advisors
Member, Ronald Reagan UCLA Medical Center Board 
of Advisors 
Member, Business Roundtable
Member, The Business Council 
Member, WSJ CEO Council

Special responsibilities
None

Interests in the Company
Ken has no deemed relevant interest in all shares held by 
Moelis & Company. Moelis & Company presently holds 
23,500,000 ordinary shares in the Group.

38

Directors’ report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Kate Pilcher Ciafone

Non-Executive Director
Appointed 19 August 2020

Simon Kelly

Independent Non-Executive  
Director
Appointed 21 April 2021 

Experience and expertise 
Kate is the Chief Operating Officer and a founding member 
of Moelis & Company. Kate has over 20 years’ experience 
as a banker and operating executive in investment banking. 
She commenced her career with UBS before joining Moelis 
& Company in 2007. Kate holds a B.S. in Commerce with 
distinction from the McIntire School of Commerce at the 
University of Virginia. 

Other directorships and appointments 
None 

Special responsibilities 
Member of the Nomination and Remuneration Committee 
(appointed August 2021) 

Interests in the Company 
None

Experience and expertise
Simon has over 30 years’ experience in strategic, financial 
and general management in Australian listed and unlisted 
consumer businesses. He is Chief Executive Officer of 
technology start-up NoahFace and has previously held 
C-suite level roles at Ardent Leisure, Virgin Australia, Nine 
Entertainment Co., Aristocrat Leisure and Goodman Fielder. 
Simon holds a Bachelor of Economics and Accounting with 
Honours, is a Member of Chartered Accountants Australia 
& New Zealand and Fellow of the Institute of Chartered 
Accountants in England and Wales.

Other directorships and appointments
Non-Executive Director of Altium Limited (resigned 
18 September 2023)

Special responsibilities
Chair of the Audit and Risk Committee 
(appointed April 2021)

Interests in the Company
Shares: 95,161

Nikki Warburton

Independent Non-Executive  
Director
Appointed 23 December 2022

Julian Biggins

Executive Director and Joint 
Chief Executive Officer
Appointed 2 February 2017

Experience and expertise
Nikki has 30 years’ experience as a senior marketing 
executive and a board director in automotive, sport, and 
media sectors. She is on the Board of Directors for Greater 
Western Sydney Giants Football Club, Car Expert and 
Cloudwerx, and is a Mentor for The Marketing Academy.

Other directorships and appointments
Non-Executive Director of Greater Western Sydney 
Giants Football Club.
Non-Executive Director of Car Expert 
Non-Executive Director of Cloudwerx

Experience and expertise
Julian was appointed Joint Chief Executive Officer in 
February 2020 and was one of the founders of the company 
in 2009. He has 20 years’ of investment banking experience 
in the real estate sector including senior roles within J.P. 
Morgan’s Investment Bank and UBS’ Equities Research 
division. He holds a Bachelor of Business (Real Estate) and 
a Bachelor of Business (Banking and Finance) from the 
University of South Australia. 

Other directorships and appointments
Director of MA Foundation (appointed June 2023)

Special responsibilities
None

Interests in the Company
Shares: 10,000

Special responsibilities
None

Interests in the Company
Shares: Julian holds a beneficial equity interest in 5,328,170 
shares as a result of his holding in the Existing Staff Trusts.
Restricted and Loan Funded Shares: 1,618,703 

39

Directors’ report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Company secretaries’ qualifications 
and experience

Janna Robertson

Joint Company Secretary 
Appointed September 2019

Janna has over 25 years’ experience in financial services, 
business operations and transformation. Prior to joining 
the Group she was a partner at Deloitte. Janna holds a 
Bachelor of Business from the University of Technology 
Sydney, is a Member of the Institute of Chartered 
Accountants in Australia and New Zealand and is a 
graduate of the Australian Institute of Company Directors.

Rebecca Ong

Joint Company Secretary  
Appointed February 2020

Rebecca has over 15 years’ experience as a lawyer in 
the financial services industry, and prior to joining the 
Group was Regional Counsel at UBS, advising its Asset 
Management business across Asia Pacific. Rebecca holds 
a Bachelor of Commerce (Finance)/Bachelor of Laws from 
the University of New South Wales.

Christopher Wyke

Executive Director and Joint 
Chief Executive Officer
Appointed 2 March 2020

Experience and expertise
Chris was appointed Joint Chief Executive Officer 
in February 2020 and was one of the founders of the 
company in 2009. He has 20 years’ investment banking 
experience specialising in restructuring, M&A, equity and 
debt capital markets transactions. Chris has worked at 
J.P. Morgan and UBS in London, Singapore and Sydney. 
He holds a Bachelor of Economics with Honours from 
University College London.

Other directorships and appointments
Director of MA Foundation (appointed November 2017, 
resigned June 2023)

Special responsibilities
None

Interests in the Company
Shares: Chris holds a beneficial equity interest in 5,028,170 
shares as a result of his holding in the Existing Staff Trusts. 
As a result of Chris’ ownership of the Trustee of one of the 
Existing Staff Trusts, Chris has deemed relevant interest 
in 14,850,000 shares. 
Restricted and Loan Funded Shares: 1,641,855

Directors’ meetings

The following table sets out the number of Directors’ meetings (including meetings of committees of Directors) held 
during the financial year:

Board meeting

Audit and Risk Committee

Nomination and Remuneration 
Committee

Jeffrey Browne

Andrew Pridham

Alexandra Goodfellow

Simon Kelly

Nikki Warburton 

Kenneth Moelis

Kate Pilcher Ciafone

Julian Biggins

Christopher Wyke

A

5

6

5

6

6

2

6

6

6

B

6

6

6

6

6

6

6

6

6

A

7

#

7

8

#

#

#

#

#

B

8

#

8

8

#

#

#

#

#

A

4

#

4

#

#

#

4

#

#

A = Number of meetings attended.
B = Number of meetings held during the time the Director held office during the year.
# = Not a member of committee

B

4

#

4

#

#

#

4

#

#

40

Directors’ report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Principal activities
The Group is a global alternative asset manager 
specialising in private credit, real estate and 
hospitality. The Group lends to property, corporate 
and specialty finance sectors and provides corporate 
advice. During the year, the Group expanded its Asset 
Management segment by acquiring Blue Elephant 
Capital Management LLC, Blue Elephant Partner LLC 
and Blue Elephant Financing LLC (collectively Blue 
Elephant), a SEC-regulated specialty credit asset 
manager based in New York. 

In the opinion of the Directors, there were no other 
significant changes to the principal activities of the 
Group during the financial year under review that are 
not otherwise disclosed in this report. 

Results
The Financial Report and results for the years ended 
31 December 2023 and 31 December 2022 have been 
prepared in accordance with Australian Accounting 
Standards, which comply with International Financial 
Reporting Standards (IFRS). Total comprehensive 
income attributable to ordinary equity holders of the 
Group for the year ended 31 December 2023 was $19.0 
million (2022: $45.8 million) and the profit after tax 
to ordinary equity holders of the Group for the year 
ended 31 December 2023 was $28.5 million (2022: 
$44.9 million).

Dividends
Subsequent to the year ended 31 December 2023, 
the Directors have resolved to pay a final dividend of 
14 cents per share, fully franked, for the year ended 
31 December 2023. The dividend is payable on 20 
March 2024.

On 20 September 2023, the Company paid an 
interim dividend of $10.6 million (6.0 cents per 
share), fully franked, for the financial year ended 31 
December 2023.

On 22 March 2023, the Company paid a final dividend 
of $24.3 million (14.0 cents per share), fully franked, for 
the financial year ended 31 December 2022.

State of affairs
There were no other significant changes in the state of 
affairs of the Group that occurred during the financial 
year under review that are not otherwise disclosed in 
this report.

Operating and Financial Review
Please refer to the Year in review section of this Annual 
Report for the following in respect of the Group:

•  a review of operations during the year and the 

results of those operations;

• 

likely developments in the operations in future 
financial years and the expected results of 
those operations;

•  comments on the financial position;

•  comments on business strategies and prospects for 

future financial years; and

•  summary of material risks the Group faces in 

achieving its financial objectives, such as cyber 
risk, regulatory change, investment risk, volatility 
in levels of business activity, treasury risk and debt 
management and operational risk.

Non-IFRS Underlying Results
The Group also utilises non-IFRS “Underlying” financial 
information in its assessment and presentation of 
the Group’s performance. In particular, the Group 
references Underlying revenue, Underlying Earnings 
Before Interest, Tax, Depreciation and Amortisation 
(EBITDA), Underlying Earnings Per Share (EPS), 
Underlying Net Profit After Tax (NPAT), and Underlying 
Return on Equity (ROE).

Underlying EBITDA and Underlying NPAT achieved for 
the year ended 31 December 2023 was $81.6 million 
(2022: $106.7 million) and $41.6 million (2022: $61.4 
million) respectively.

The Directors place great importance and value on the 
IFRS measures. As such, the Directors believe that, 
when read in conjunction with the IFRS measures, the 
Underlying measures are useful to the reader as:

•  The Underlying measures reveal the underlying run 

rate business economics of the Group;

•  The Underlying measures are used by management 
to allocate resources and make financial, strategic 
and operating decisions. Further, all budgeting 
and forecasting is based on Underlying measures. 
This provides insight into management decision 
making; and

•  Unless otherwise disclosed, the Underlying 

adjustments have been consistently applied in all 
reporting periods, regardless of their impact on the 
Underlying result.

40

41

Directors’ report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023The Underlying financial information is not prepared 
in accordance with Australian Accounting Standards 
and IFRS and is not audited. Adjustments to the IFRS 
information align with the principles by which the 
Group views and manages itself internally and consist 
of both differences in classification and differences in 
measurement. 

Differences in classification arise because the Group 
chooses to classify some IFRS measures in a different 
manner to that prescribed by IFRS.

Differences in measurement principally arise where the 
Group prefers to use non-IFRS measures to better:

•  Align with when management has greater certainty 

of timing of cash flows;

•  Regulate the variability in the value of key strategic 

assets; and

•  Normalise for the impacts of one-off 

transaction costs.

Please refer to note 3 in the Financial Report for 
a detailed reconciliation between the IFRS and 
Underlying measures.

Likely developments
The Group continues to pursue its strategy of focusing 
on its core operations. In particular, the Group will 
continue to market its managed funds and launch new 
managed funds with the aim of growing assets under 
management. 

Events subsequent to reporting date 
There has not arisen in the interval between the end of 
the financial year and the date of this report any item, 
transaction or event of a material and unusual nature 
likely, in the opinion of the directors of the Company, 
to affect significantly the operations of the Group, the 
results of those operations, or the state of affairs of the 
Group, in future financial years.

Environmental regulation
Please refer to the Sustainability Report for details of 
the Group’s Environmental, Social, and Governance 
(ESG) framework. The Group has policies and 
procedures in place, to identify obligations and notify 
material breaches, where operations are subject to 
any particular and significant environmental regulation 
under a law of the Commonwealth or of a State or 
Territory. The Directors have determined that there 
has not been any material breach of these obligations 
during the financial year. 

Non-audit services
The Group Audit and Risk Committee has reviewed the 
details of the amounts paid or payable for non-audit 
services provided to the Group during the year ended 
31 December 2023 by the Company’s auditor, KPMG.

The Directors are satisfied that the provision of 
non-audit services during the year, by the auditor (or 
by another person or firm on the auditor’s behalf), is 
compatible with the general standard of independence 
for auditors imposed by the Corporations Act 2001 (Cth).

The Directors are of the opinion that the services as 
disclosed in note 38 to the financial statements do not 
compromise the external auditor’s independence, for 
the following reasons:

•  all non-audit services were reviewed and approved 
in accordance with the Auditor Independence 
Policy, which outlines the approval process that 
must occur for non-audit services. 

•  none of the services undermine the general 

principles relating to auditor independence as set 
out in Code of Conduct APES 110 Code of Ethics for 
Professional Accountants issued by the Accounting 
Professional and Ethical Standards Board, including 
reviewing or auditing the auditor’s own work, acting 
in a management or decision making capacity for the 
Group, acting as advocate for the Group or jointly 
sharing economic risks and rewards. 

Indemnification and insurance of 
Directors’, officers and auditors
During the year, the Group paid a premium in respect 
of a contract insuring the Directors and officers of the 
Group against liabilities and legal expenses incurred 
as a result of carrying out their duties as a Director 
or officer. The Directors have not included details of 
the nature of the liabilities covered or the amount of 
premium paid in respect of this insurance, as such 
disclosure is prohibited under the terms of the contract.

The Group has agreed to indemnify all current and 
former Directors, company secretaries and certain 
officers of the Group and its controlled entities 
against all liabilities to persons (other than the Group 
or a related body corporate) which arise out of the 
performance of their normal duties as a Director, 
company secretary or officer to the extent permitted 
by law and unless the liability relates to conduct 
involving wilful misconduct, bad faith or conduct known 
to be in breach of law. This indemnity extends in the 
same fashion to individuals who serve at the specific 
direction or request of the Group in an equivalent 
position in certain investment portfolio vehicles.

42

Directors’ report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023The Group has not otherwise, during or since the end 
of the financial year, except to the extent permitted 
by law, indemnified or agreed to indemnify an officer 
or auditor of the Group or any related body corporate 
against a liability incurred as such an officer or auditor.

Proceedings on behalf of the Company
No person has applied to the Court under s.237 of 
the Act for leave to bring proceedings on behalf of 
the Company, or to intervene in any proceedings to 
which the Company is a party for the purpose of taking 
responsibility on behalf of the Company for all or part 
of those proceedings.

Rounding
The amounts in the Directors’ Report and the Financial 
Report have been rounded to the nearest thousand 
dollars, unless otherwise stated, under the option 
available to the Group under Australian Securities 
and Investments Commission (ASIC) Corporations 
Instrument 2016/191.

Auditor’s independence declaration
The auditor’s independence declaration is included at 
the end of this report and forms part of the Directors’ 
Report for the financial year ended 31 December 2023.

Authorisation
Signed in accordance with a resolution of the Directors of MA Financial Group Limited:

Jeffrey Browne
Independent Chair and Non-Executive Director

Julian Biggins
Director and Joint Chief Executive Officer

Sydney
22 February 2024

Sydney
22 February 2024

42

43

Directors’ report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Letter from the Chair of the Nomination and 
Remuneration Committee

Dear Shareholders, 

As Chair of the Nomination and Remuneration 
Committee, I am pleased to present the Remuneration 
report for the year ended 31 December 2023.

Each year, the Board reviews the Group’s executive 
remuneration practices to ensure they remain 
appropriately aligned to our short-term and long-term 
strategic objectives and are appropriate in the context 
of the wider market. We are focused on ensuring that 
MA Financial attracts, retains and motivates high 
calibre executives who can be effective in balancing 
growth and risk management.

Remuneration Philosophy and Framework
Our remuneration philosophy remains consistent 
with prior years, aiming to fairly reward and retain 
the people who drive our achievement of our long-
term objectives. The remuneration structure has 
been designed to include significant deferred and 
share based components which vest progressively 
over five years. The framework and the choice of LTI 
instrument (Loan Funded Shares) are intentional in 
seeking incentivising sustainable long-term growth and 
business building.

As part of its periodic review of the remuneration 
structure and in response to stakeholder feedback, the 
Board has amended the LTI terms. The LTI Performance 
Period has changed from five years to four years 
and now the grant of the LTI aligns more closely with 
the start of the Performance Period. Previously, the 
Performance Period began approximately 15 months 
before the LTI equity grant, creating a misalignment 
between the performance measure and the associated 
share price appreciation. Four years continues to 
be at the longer end of peer comparable terms for 
LTI and meets the Board’s objectives of Executive 
incentivisation to deliver sustained long-term 
growth. The Performance Condition which applies is 
unchanged. More detail is set out in section 2.3.

Remuneration Outcomes
FY23 was another year of investment and growth at MA 
Financial and has delivered strong earnings quality with 
growth in recurring revenues. Following the FY22 result, 
which included significant one-off performance fees, 

it was pleasing to see that in FY23 recurring revenue 
increased by 23% and Asset Management delivered 
record gross funds inflows (up 27% on FY22). In FY23 
significant investment in future growth occurred 
through the MA Money investment, Singapore office 
opening, launch of new asset management products, 
acquisition of Blue Elephant and the investment in 
Middle. With challenged market conditions, not all 
parts of the business enjoyed equal growth. Corporate 
Advisory & Equities experienced a softer M&A market 
and subdued client demand for capital raisings.

Having set challenging targets for FY23, the EPS and 
ROE objectives applicable to STI have not been met 
which is reflected in the STI award. Whilst several 
of the factors impacting the result were macro and 
market condition related and therefore outside of the 
management team’s control, it was pleasing to see 
the efforts taken to respond to market conditions and 
actively manage the cost base.

Where the corporate objectives have not been met, 
the Board determines an appropriate award for that 
KPI measure between 0–100%. In determining an 
award for FY23 Corporate objectives, the Board had 
regard to the degree of stretch in the target which was 
set, the quality and composition of revenue growth 
and of the earnings delivered, the impact of strategic 
and long-term investments on the reported result, 
the effectiveness of cost and operational initiatives 
management implemented, the wider economic 
context within which the result was delivered and 
performance against market consensus. On this 
assessment, the Board determined to award 40% of 
each of the Corporate Objectives. This represents an 
award to the Joint CEOs which is 69% of the FY22 
STI award.

The Group is making significant investment (as set out 
above) and has set clear medium term targets which 
reflect the benefit of these investments being realised 
in the medium term. The Group is looking to deliver 
sustained growth and the Board continues to exercise 
judgement in balancing STI and LTI awards in aligning 
Executives to delivering long-term value creation.

44

MA Financial Group | 2023 Annual ReportLetter from the Chair of the Nomination and 
Remuneration Committee (continued)

Director Remuneration
As indicated in our FY22 Remuneration report, 
in late FY22 we reviewed the appropriateness of 
Director remuneration and determined that whilst 
Chair and Director base fees were appropriate, 
the Board committee Chair remuneration for each 
subcommittee would be increased by $25,000 per 
annum, reflecting the increased work load carried out 
at the committee level. This is detailed in section 7 of 
the Remuneration report.

People and Culture
MA Financial’s vision is to be co-creators of long-term 
value for our clients and for the benefit of shareholders. 
A combination of insight, attitude and integrity, 
together with clarity of purpose and a focus on what 
matters is MA Financial’s unique culture formula. 
The MA Financial team is highly regarded and driven 
to succeed. Our responsibility to all employees is to 
maintain a great culture and nurture the right balance 
of opportunity, talent development and competitive 
compensation, to help each person thrive.

Concluding Remarks
On behalf of our Board, we thank our shareholders 
for your investment in MA Financial. We also wish 
to acknowledge the continued innovation and 
contribution of all our employees.

The Board continues to place a high priority on having 
meaningful dialogue with our shareholders and other 
stakeholders regarding our remuneration practices to 
understand their perspectives and ensure we remain 
abreast of local and global market best practices.

Alexandra Goodfellow

Chair of the Nomination and Remuneration 
Committee

44

45

MA Financial Group | 2023 Annual ReportRemuneration report

1. 

Remuneration report overview 

The Directors of MA Financial are pleased to present the Remuneration report (Report) for the Group 
for the year ended 31 December 2023. The Report forms part of the Directors’ Report and has been 
prepared in accordance with section 300A of the Corporations Act 2001 (Cth) (the Act).

The Report details the remuneration arrangements 
for the Group’s key management personnel 
(KMP) including:

KMP are those persons who, directly or indirectly, have 
authority and responsibility for planning, directing and 
controlling the activities of the Group.

• 

• 

the Non-Executive Directors (NEDs)

the Chief Executive Officers (Joint CEOs) and 
senior executives (collectively the Executive).

The table below outlines the KMP of the Group and 
their movements during the year ended 31 December 
2023 (FY23).

Name

Position

Term as KMP

Non-Executive KMP 

Jeffrey Browne

Independent Non-Executive Chair

Full financial year

Alexandra Goodfellow

Independent Non-Executive Director

Full financial year

Simon Kelly 

Independent Non-Executive Director

Full financial year

Nikki Warburton

Independent Non-Executive Director

Full financial year

Kenneth Moelis

Non-Executive Director

Kate Pilcher Ciafone

Non-Executive Director

Full financial year

Full financial year

Executive KMP

Julian Biggins

Executive Director and Joint CEO

Full financial year

Christopher Wyke

Executive Director and Joint CEO

Full financial year

Andrew Pridham

Group Vice Chair

Janna Robertson

Chief Operating Officer

Full financial year

Full financial year

Graham Lello

Giles Boddy

Chief Financial Officer

Resigned 6 March 2023

Chief Financial Officer

Appointed 6 March 2023

46

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20232. 

How remuneration is governed

Joint CEO Structure

2.1 
MA Financial established a Joint CEO structure in 
March 2020 following the appointments of Julian 
Biggins and Christopher Wyke as Joint CEOs.

The Board considers the Joint CEO structure to be 
appropriate for MA Financial in this current phase of its 
growth due to the following:

•  Christopher Wyke and Julian Biggins are founding 
members of the Group. The Group operates a 
breadth of businesses across three divisions (Asset 
Management, Lending & Technology, Corporate 
Advisory & Equities), has operations across 
Australia, Singapore, USA, China and Hong Kong, 
over 600 employees, and has $9.2 billion of assets 
under management. We are an active manager of 
alternative assets. Our investment expertise spans 
Real Estate, Private Credit, Equities and Private 
Equity investments including Venture Capital

•  Each CEO brings specific skills and capabilities 
to allow them to focus on managing and growing 
different parts of our diversified businesses, 
which we believe facilitate stronger and more 
sustainable growth

•  Julian is responsible for the Group’s finance, 

investor relations and communications functions, 
and leading the strategy and scaling of all our 
Real Estate investment activities and operating 
businesses associated with real estate. He also 
leads our Equities and Capital Markets capabilities

•  Christopher has responsibility for our Advisory, 
Lending & Technology and Credit investing 
activities. He also takes responsibility for our risk, 
legal and compliance functions

•  The Joint CEOs share equal responsibility for 
Asset Management and distribution capability 
and the Group’s culture, people and strategy, 
including acquisitions

•  Together, the Joint CEOs are also jointly responsible 
for determining and driving the growth ambition of 
the Group.

The Board is responsible for periodically assessing the 
appropriateness of the Joint CEO structure to ensure 
its effectiveness by assessing the joint performance of 
the CEOs in delivering strong shareholder outcomes.

Remuneration decision-making

2.2 
The Board established the Nomination and 
Remuneration Committee (the Committee), which 
operates under the delegated authority of the Board. 
The Committee has primary carriage of the Group’s 
remuneration strategy, framework and principles.

The Board, Committee and the Executive work together 
to apply the remuneration governance framework. The 
remuneration governance framework is designed to 
support our purpose, principles, strategy, and long-
term approach to creating sustainable value for our 
shareholders, clients and the community.

The members of the Committee are listed below. 
Members were in office for the entire year, unless 
otherwise stated.

•  Alexandra Goodfellow – Independent Non-

Executive Committee Chair

•  Jeffrey Browne – Independent Non-Executive 

Committee Member

•  Kate Pilcher Ciafone – Non-Independent Non-

Executive Committee Member.

Compensation practices were restructured in FY21. 
The approach was refined in FY22 and in response 
to stakeholder feedback, we have made further 
refinements to short-term incentives (STI) and long-term 
incentives (LTI) in FY23 to ensure remuneration policies 
and practices remain appropriate and competitive.

The Committee has oversight of remuneration 
practices and, where required, will access specialist 
external advice about remuneration structure and 
levels and is utilised periodically to support the 
remuneration decision-making process.

The Committee Charter can be found on the 
Corporate Governance page of the Group’s website 
at www.mafinancial.com.

2.3 

Remuneration principles and links to  
business strategy and performance
The Board recognises the important role people play 
in achieving the Group’s long-term objectives and as a 
key source of competitive advantage. To grow and be 
successful, the Group must be able to attract, develop, 
motivate and retain the highest calibre individuals.

The Group’s purpose is to deliver sustainable, long-term 
value to our clients. The key objectives underpinning 
our purpose are embedded in the Group’s remuneration 
principles, as summarised in the following diagram.

47

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023 
The Board exercises significant oversight and 
judgement to ensure the appropriate alignment of 
employees, shareholders and client outcomes. In 
setting remuneration, the Board seeks to strike a 
balance between having a transparent, aligned and 
structured remuneration framework, whilst retaining 
some discretion and flexibility to alter remuneration 
arrangements to deliver fair outcomes. 

As the Executives of the Group continue to build 
and scale the business, we seek to strike a balance 
between investing in the future and appropriate 
reward for the progress achieved to date. The Board 
recognises the need for a human judgement overlay in 
determining remuneration outcomes as rigid formulaic 
approaches can deliver unintended outcomes.

OUR CORE BELIEFS

•  Our purpose is to create sustainable, long-term value for clients

•  We believe in unlimited potential. It is an unwavering belief in the potential of our people and our clients

•  Our four drivers motivate our decisions and actions: 

 – Character Matters

 – Better Way

 – Edge has a formula

 – Co-creators of value 

•  We believe that to consistently deliver, we must be active and expert managers of risk

REMUNERATION PRINCIPLES

Enable the Group 
to attract, retain 
and motivate a high 
performing Executive 
cohort 

Align Executives to 
deliver both short 
and long-term results 
and sustainable value 
creation 

Alignment to 
shareholder objectives 
through an ‘owner’s 
mentality’ 

Reinforce active risk 
management and 
the upholding of the 
Group’s values 

Encourage and drive 
growth by linking pay 
and performance 
and rewarding 
outperformance 

Fixed Annual 
Remuneration (FAR)

e
s
o
p
r
u
P

e
r
u
t
c
u
r
t
S

h
c
a
o
r
p
p
A

Set at a comparatively 
low level relative to 
industry and a smaller 
proportion of the 
total remuneration mix.

Base salary, 
compulsory 
superannuation 
and non-monetary 
benefits. 

Reviewed periodically 
considering various 
factors including our 
remuneration policy, 
role responsibility 
and complexity, 
market conditions 
and relevant external 
remuneration 
benchmarks. 

EXECUTIVE KMP REMUNERATION FRAMEWORK

At-risk

Short-term Incentive

Long-term Incentive

Rewards for achieving annual objectives that drives 
execution of our strategy and creates sustainable 
shareholder wealth, in a manner consistent with our 
values, drivers and risk culture.

Rewards for creating sustainable long-
term shareholder value and reinforcing 
an ownership mindset.

•  65% paid as cash
•  35% deferred into shares, as follows:

 – One third for 1 year
 – One third for 2 years
 – One third for 3 years.

Annual grant of loan funded shares 
funded by an interest-free limited 
recourse loan, with vesting subject to a 
4-year performance period.

Quantum:
•  Target opportunity range of 275%– 325% of FAR 

Quantum:
•  Target opportunity range of 125%–

for Joint CEOs

•  Maximum opportunity of 325% of FAR for  

Joint CEOs 

•  No maximum opportunity for other KMP 
who may earn above target range, based 
on Board discretion.

175% of FAR for Joint CEOs
•  No maximum opportunity for 

any KMP (including Joint CEOs) 
who may earn above target 
range for outperformance, based 
on Board discretion.

Performance Assessment:
•  50% Corporate objectives (Underlying EPS and ROE) 
•  50% Personal objectives (role-specific). 

Performance Assessment:
•  Compound Annual Growth Rate 

(CAGR) EPS growth on a sliding scale

48

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023To ensure that the remuneration framework remains fit-
for-purpose as the Group continues to grow, the Board 
has continued to refine and enhance the remuneration 
framework during FY23.

After a review which included consultation with 
stakeholders, the Board has made certain amendments 
to the remuneration structure introduced in for FY21. 
The enhancements made relate to LTI are as follows:

•  The commencement of the Performance Period 
has been aligned more closely with the grant of 
the LTI instrument (previously, the Performance 
Period began approximately 15 months before the 
LTI equity grant, creating a mis-alignment between 
the performance measure and the associated 
share price)

•  As a consequence of the change, the LTI 

Performance Period is now four years (previously 
five years), which continues to be at the longer end 
of peer comparables and meets the objectives of 
Executives being incentivised to deliver sustained 
long-term growth

•  The performance condition which applies 

is unchanged.

The nature of the changes to LTI mean that there is 
no interruption to the Executives receiving an annual 
award of LTI. 

The elements of the Executive remuneration 
framework are summarised in the diagram below and 
detailed in the subsequent sections.

Type

Structure

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Fixed Annual 
Remuneration 
(FAR)

Short-term 
Incentive  
(at risk) (STI)

Long-term 
Incentive  
(at risk) (LTI)

Paid monthly 

Base salary, 
compulsory 
superannuation 
and non-monetary 
benefits 

At risk, with 65% 
paid as cash, with 
35% deferred into 
shares vesting 
over 3 years

At risk, with annual 
grant of loan funded 
shares funded by an 
interest-free, limited 
recourse loan 
(subject to a 4-year 
vesting period) 

Opportunity 
range is 
set as a % 
of base salary

(March)

Share component deferred with 
one third in Year 3, one third in 
Year 4 and one third in Year 5

Subject to a 4-year performance period 
measured against Underlying EPS CAGR 
between 7.5% and 12% per annum 

Legends:

Cash payment

Equity/Instrument grant

Share vesting

The above diagram illustrates the phasing of 
remuneration opportunity. The remuneration structure 
has been designed to include significant deferred and 
share based components. This, combined with the LTI 

instrument (which awards for dividends and share price 
growth only) aligns the Executive to deliver shareholder 
outcomes and encourages measured and responsible 
business building and growth.

49

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023This is illustrated further in the following tables that highlight total remuneration deferral over a five year period. The 
cumulative award shows the opportunity phasing from 22% in year 1 to 100% in year 5, with a material LTI weighting.

Timing of FAR, STI and LTI over 5 years

Fixed Annual Remuneration

Short-term Incentive

Long-term Incentive

Timing of FY23 remuneration opportunity1

Total

Cumulative Total

Y1

100%

-

-

FY22

22%

22%

1.  Based on FY23 Joint CEO remuneration award

Remuneration mix

JOINT CEOs 

Y2

-

65%

-

FY23

26%

59%

KMP

Y3

-

12%

-

FY24

5%

53%

Y4

-

12%

-

FY25

5%

58%

Y5

-

11%

100%

FY26

42%

100%

22%

31%

37%

78%
At risk

41%

59%
At risk

41%

28%

Fixed

STI

LTI

Fixed

STI

LTI

The graph above shows the remuneration mix for the Joint CEOs and KMP based on the remuneration outcomes 
for FY23 as set out in Table 3, 5 and 8. The remuneration mix shows graphically the Board’s focus on maintaining 
higher at risk components of remuneration, with 59–78% of KMP remuneration opportunity at risk. The approach to 
each of the components is described below in sections 3.1 to 3.3.

50

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20233. 

3.1 

Executive remuneration policy and practices

Fixed Annual Remuneration (FAR)

FAR consists of base salary, compulsory 
superannuation and non-monetary benefits. FAR 
levels for the Executive are reviewed periodically by 
the Committee on behalf of the Board taking into 
consideration several factors including:

• 

• 

the scope and complexity of the role, including 
role accountabilities

the criticality of the role to successful execution of 
the business strategy

•  skills and experience of the individual

•  period of service

3.2 

Short-term Incentive (STI) plan

•  scarcity of talent

•  market pay levels for comparable roles.

MA Financial has and will continue to position 
FAR at relatively low levels compared with total 
compensation and intends to review FAR based on 
the Group achieving growth milestones, rather than 
on an annual basis. We believe that higher at-risk 
remuneration supports our philosophy of rewarding for 
long-term performance.

There were no increases to FAR applied to KMP 
in FY23.

What is the objective of 
the STI plan?

The purpose of the STI plan is to recognise the Executive for achieving a combination of Board- 
approved Corporate and Personal objectives that support the execution of the Group’s strategy 
and create sustainable shareholder value, in a manner consistent with organisational values 
and risk culture.

How is it paid?

STI awards for the Executive are paid part in cash (65%) with a portion deferred in shares (35%) 
according to the extent of achievement of the applicable performance measures.

What is the Performance 
Period?

STI awards are assessed over a 12-month Performance Period aligned with the Group’s financial 
year (1 January 2023 to 31 December 2023).

How much can the 
Executive earn?

In FY23, the Joint CEOs had a target STI opportunity of $1,800,000 and a maximum opportunity 
of $1,950,000. 

The Vice Chair has no target attached to his KPIs, as certain KPIs (e.g. revenue generation) are 
not subject to an upper limit. 

STI award outcomes depend on the extent of achievement of the applicable performance measure. 

How is performance 
assessed and what 
are the performance 
measures?

Performance measures include Corporate and Personal objectives (50% each) that align with the 
Group’s strategy and core values.

The Board, with the assistance of the Committee, sets and assesses the measures applicable to 
the Joint CEOs. The outcome of the assessment determines the STI amount payable to the  
Joint CEOs. 

The Joint CEOs set and assess the individual measures applicable to the KMP. The Committee 
reviews the outcome of the assessment.

The Corporate objectives applicable to the Joint CEOs for FY23, their weightings and link to 
strategy are listed below.

Corporate objective

Underlying EPS

ROE

Weighting (% of STI)

Rationale why chosen and link to strategy

To incentivise profitability growth as a key 
driver of sustainable shareholder returns

Delivering long-term competitive investment 
returns for our investors is core to our offering

25%

25%

50%

51

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Is there a deferral 
mechanism and why?

What happens to 
STI awards when an 
Executive ceases 
employment?

How are dividends 
treated during the 
deferral period?

Is there a malus/ 
clawback provision?

Why does the Board 
consider Board 
discretion to be 
appropriate?

The remaining 50% of the STI opportunity relates to performance against Personal objectives 
that are specific to the role and responsibilities of the Executive in the areas they control and 
influence. Personal objectives are ultimately linked to the overall strategy and success measures 
of the Group.

Refer to section 4.2 for further detail of the Corporate and Personal objectives of the Joint CEOs 
for FY23, including commentary on performance assessment and outcomes.

Yes.

35% of any STI award is deferred into ordinary shares in the Company. The shares vest in equal 
thirds on the first, second and third anniversaries of the grant date, respectively, subject to the 
recipient’s continued employment.

The number of shares to be allocated is equal to 35% of the STI award divided by the face value 
of Company shares, calculated as the 5 day volume-weighted average price (VWAP) up to and 
including 7 March 2024.

The deferral mechanism ensures that the impact of decisions and performance in any one year 
are sustained over the medium–long-term, acts as a retention mechanism, and provides the 
Board an opportunity to reinforce accountability through remuneration reductions if necessary.

Unless the Board determines otherwise or the Executive is a Good Leaver (see below), if the 
Executive ceases to be an employee of the Group during the deferral period, their deferred STI 
will be forfeited.

Subject to the Board’s discretion to determine otherwise and any applicable laws, an Executive 
who is a Good Leaver will be entitled to retain a pro rata portion of their deferred STI based on the 
proportion of the deferral period that has elapsed as at the date on which employment ceases. 
Any retained deferred STI will continue to be held subject to the rules governing the grant of 
the deferred STI component and will remain subject to restriction until the end of the relevant 
deferral period. The balance of the deferred STI will be forfeited.

Good Leaver means a participant who ceases employment due to retirement (with agreement 
of the Board), resignation (with agreement of the Board), ill-health, total and permanent 
disablement, redundancy, or death, or the sale by the Company of the business in which the 
participant is employed such that it is no longer a member of the Group, as determined by the 
Board, or such other circumstances as the Board may at any time determine.

Dividends will be paid to holders of the shares during the deferral period.

Yes.

Where, in the opinion of the Board, a participant has acted fraudulently, dishonestly, made a 
material misstatement, has engaged in serious misconduct, gross negligence, is responsible for 
material financial losses, has contributed to material reputational damage, is in material breach 
of duties, has commenced employment with a direct competitor of the Company, the Board may, 
deem all or some of any deferred STI to have been forfeited, adjust conditions applicable to the 
STI, or adjust the participant’s incentive entitlements in respect of any future year.

At all times, the Board may exercise discretion on STI awards. The Board acknowledges 
that selected performance measures and formulaic calculations may not provide the 
right remuneration outcome in every situation, leading to occasions where the incentive 
does not reflect true performance and overall contributions of the Executive. It is at this 
point that discretion becomes necessary, such that the Board can adjust outcomes up or 
down as warranted.

Discretion will only be applied in a manner that aligns the experience of both the Company and 
shareholders. 

52

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20233.3 

Long-term Incentive (LTI) plan 

As discussed in section 2.3 above, we have restructured the LTI to align the Performance Period with the issuance 
date and as a consequence the Performance Period reduces from 5 to 4 years. The period between the issuance 
date and time of vesting remains the same as prior grants, as are the performance conditions.

The below describes the LTI award which will be issued in March 2024. 

Why does the Board 
consider a LTI plan is 
appropriate?

The key objectives of the LTI plan is to:

•  Align Executive remuneration with the creation of sustainable long-term shareholder value

•  Reward Executives for share price appreciation and earnings performance over a four-

year performance period

•  Attract and retain key Executives

•  Encourage an ‘owner’s mentality’

•  Provide competitive remuneration aligned with general market practice of ASX-listed entities.

Who is eligible?

The Executive and other senior executives.

How is the award 
delivered?

The LTI award is in the form of Loan Funded Shares.

A Loan Funded Share is a share whose acquisition has been fully or partly funded by a limited 
recourse loan from the Company. The loan is provided for the sole purpose of participants acquiring 
shares in the Company. Loan Funded Shares granted to eligible participants under the LTI plan carry 
the same rights and entitlements as other shares on issue, including voting and dividends.

The loan is ‘interest free’ in that there is no annual interest charge to the participant on the 
loan. However, the notional value of this interest is taken into account in the overall structure 
of the programme.

The Loan Funded Shares are subject to risk of forfeiture during the vesting/Performance Periods 
and while the loan remains outstanding.

How often are awards 
made?

LTI awards are granted on an annual basis to eligible participants. The grant date is in March  
each year. 

The Board has absolute discretion to determine the frequency and timing of grants under 
the LTI plan.

How much can the 
Executive earn?

The CEO LTI award opportunity has been determined at 167% of fixed remuneration (the maximum 
award is 175%).

What is the quantum 
of the award and what 
allocation methodology 
is used?

The number of Loan Funded Shares granted to an Executive is determined by dividing the 
Executive’s LTI opportunity by the fair value of the Company’s shares.

The fair value is calculated as the 5-day VWAP of Company shares up to and including the grant 
date, multiplied by the binomial pricing model valuation factor.

The model inputs for Loan Funded Shares granted during the year included:

•  Share price at grant

•  Binomial factor of 30%

•  LTI award

What is the performance 
period?

What are the 
performance conditions?

4-year performance period of 1 January 2024 to 31 December 2027.

Of the total number of Loan Funded Shares granted to an Executive, 100% will be subject to a 
Performance Condition: the performance condition for the LTI award is based on a CAGR of 
Underlying EPS. The award is on a sliding scale of 50%–100% award with CAGR Underlying EPS 
growth of 7.5% to 12%.

53

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Why were the 
performance conditions 
selected?

The performance conditions were selected by the Board in consideration of the Group’s 
strategic objectives. Specifically:

•  Use of Underlying EPS aligns the Executive to drive profitable growth objectives. Underlying 

EPS growth aligns the Executive to the strategic objectives to build MA Financial as a diversified 
financial services group in a manner which is measured and can be sustained. This determines 
the size of the LTI award

•  Use of the Loan Funded Share instrument aligns the Executive to growth in the share price, 

because the share price appreciation from issue to vest determines the value of the LTI award

•  Use of a sliding scale protects against a binary LTI award outcome; and

•  The LTI is 100% subject to a performance hurdle, with vesting after 4 years.

The Board will review the performance conditions annually to determine the appropriate hurdles 
based on the Group’s strategy and prevailing market practice and conditions.

What is Underlying CAGR 
and how is it measured?

The definition of average growth in Underlying CAGR is set out as follows:

Compound Annual 
Growth Rate 
(CAGR) % 

=( 27EPS )( 1) – 1

23EPS

N

Where:
23EPS = Underlying EPS as at 31/12/23
27EPS = Underlying EPS as at 31/12/27
N = number of years (being 4 years in the plan)

The level of vesting of this component will be determined according to the following schedule:

Underlying CAGR (per annum)

Percentage of Loan Funded Shares that vest

Less than 7.5%

7.5% to 12%

Nil

Pro rata between 50% and 100% vest

Greater than or equal to 12%

100% vest

What are the restrictions 
applying to Loan Funded 
Shares?

Loan Funded Shares may not be transferred, encumbered, disposed of or otherwise dealt with while 
they remain subject to the above performance conditions, unless permitted by the LTI plan rules or 
determined by the Board.

Once Loan Funded Shares vest, subject to the Company’s Trading Policy and applicable law, the 
Executive will generally be able to sell them subject to repaying the loan applicable to those shares 
(or making arrangements acceptable to the Board regarding repaying of the loan).

How are dividends 
treated during the 
performance period?

Any dividends paid on the shares while the shares are restricted are applied (on a notional after-tax 
basis) towards repaying the loan. The balance of the dividend is paid directly to the Executives to 
fund their tax liability on the dividends received.

54

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023What happens to Loan 
Funded Shares when 
an Executive ceases 
employment?

What happens in the 
event of a change of 
control?

Is there a malus/ 
clawback provision?

Unless the Board determines otherwise or the Executive is a Good Leaver (see below), if the 
Executive ceases to be an employee of the Group during the performance period, their unvested 
Loan Funded Shares will be forfeited.

Subject to the Board’s discretion to determine otherwise and any applicable laws, an Executive who 
is a Good Leaver will be entitled to retain a pro rata number of their unvested Loan Funded

Shares based on the proportion of the performance period that has elapsed as at the date on which 
employment ceases. Any retained unvested LTI will continue to be held subject to LTI plan rules and 
relevant performance conditions, and generally the Executive will have six months to settle the loan 
following vesting. The balance of unvested Loan Funded Shares will be forfeited in satisfaction of 
the portion of the loan to which the forfeited Loan Funded Shares relate.

Good Leaver means a participant who ceases employment due to retirement (with agreement of 
the Board), resignation (with agreement of the Board), ill-health, total and permanent disablement, 
redundancy, or death, or the sale by the Company of the business in which the participant is 
employed such that it is no longer a member of the Group, as determined by the Board, or such 
other circumstances as the Board may at any time determine.

The Board has discretion to make a determination to award, partially award or adjust LTI in the event 
of a change of control.

Yes.

Where, in the opinion of the Board, a participant has acted fraudulently, dishonestly, made a 
material misstatement, has engaged in serious misconduct, gross negligence, is responsible for 
material financial losses, has contributed to material reputational damage, has breached any term 
of the Loan Agreement, is in material breach of duties, has commenced employment with a direct 
competitor of the Group, the Board may, deem all or some of any unvested Loan Funded Shares 
as forfeited, adjust conditions applicable to the Loan Funded Shares, or adjust the participant’s 
incentive entitlements in respect of any future year.

Why does the Board 
consider Board 
discretion to be 
appropriate?

At all times, the Board may exercise discretion on vesting of LTI awards. The Board acknowledges 
that selected performance measures and formulaic calculations may not provide the right 
remuneration outcome in every situation, leading to occasions where the incentive does not reflect 
the true performance and overall contributions of the executive. It is at this point that discretion 
becomes necessary, such that the Board can adjust outcomes up or down as warranted.

Discretion will only be applied in a manner that aligns the experience of both the Company and 
shareholders. 

55

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20234. 

4.1 

Executive remuneration outcomes

Company performance

FY23 financial performance
The graphs below provide a summary of the Group’s financial performance over the past five financial years (including 
FY23) in accordance with the requirements of the Act. As remuneration outcomes are measured with reference to 
Underlying and not statutory results, only the Underlying results are presented in this section 4 of the Remuneration 
report. A reconciliation of Underlying results to statutory results is set out in note 3 of the Financial Report.

Underlying revenue ($m)
Underlying Revenue ($’m)

Underlying EBITDA ($m)
Underlying EBITDA ($m)

155.6

157.1

214.8

301.8

269.9

60.8

57.5

70.9

106.7

81.6

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

Underlying EPS (cents)
Underlying EPS (cents)

Assets under Management ($b)
Assets under Management ($b)

25.3

23.6

38.3

29.6

26.0

9.2

7.8

6.9

4.9

5.4

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

Share price ($)*
Share price ($)*

Dividend (cents)
Dividend (cents)

8.95

20.0

20.0

17.0

5.10

4.75

4.54

5.52*

10.0

10.0

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

* Share price at 31 December 2023

56

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023The Board provides the following commentary 
regarding the Group’s Underlying financial 
performance for FY23.

Further commentary on performance is set out in the 
Year in Review section.

We note that in setting the STI targets for FY23:

•  EPS and ROE targets were challenging, particularly 
in the context of deteriorating market conditions in 
some businesses; and

•  A record FY22 level of performance fees was noted 

as unlikely to recur in FY23.

FY23 was another year of growth for the Group and in 
particular delivered strong earnings quality with growth 
in recurring revenues. We call out the following key 
highlights in the FY23 result:

•  Recurring revenue increased by 23%, with Asset 

Management delivering record gross funds inflows 
(up 27% on FY22)

•  Sound momentum in volume growth in our 

residential mortgage sector businesses, MA Money 
and Finsure

•  Significant investment in future growth through the 
MA Money investment, Singapore office opening, 
launch of new asset management products, 
acquisition of a US private credit platform and the 
investment in Middle 

•  Resulting in Underlying EBITDA of $81.6m and 

Underlying EPS of 26 cps

•  The impact of strategic investments on EPS was  

5 cents per share

•  The share price has increased 98 cents (or 22%) 

in FY23.

Not all parts of the business have enjoyed equal 
growth, with Corporate Advisory & Equities 
experiencing challenging market conditions and 
subdued client demand for capital raisings. Having set 
challenging Corporate objectives for FY23, without 
all parts of the business contributing to plan, the 
Corporate objectives applicable to STI have not been 
met and this has been reflected in the total STI award. 

However, our strategy of diversification has enabled 
the business to continue to grow and invest where 
opportunities present. While the Group is making 
significant investment (as set out above) and has set 

clear medium-term targets which reflect the benefit 
of these investments being realised in the medium-
term. The Group seeks to deliver sustained growth and 
continues to exercise judgement in balancing STI and 
LTI awards to align Executives to delivering sustainable 
growth which leads to long-term value creation. 

Our LTI instrument provides strong alignment with our 
shareholders objectives (to deliver share price growth). 
This, combined with the significant shareholdings of 
our Executives provides confidence in this team’s focus 
on future growth and delivering on the investments we 
have made.

4.2 

STI performance and outcomes

In accordance with the methodology set out in section 
3 of the Remuneration report, an assessment was 
undertaken of the performance of each eligible 
Executive against their FY23 objectives.

The FY23 STI objectives for the Joint CEOs, with 
commentary on achievements, are provided in Table 
1. The STI award percentages and payments to 
Executives are presented in Table 2.

The Corporate objectives set for Underlying EPS and 
Underlying ROE objectives were not met. Where the 
Corporate objectives have not been met, the Board 
determines an appropriate award for that KPI measure 
between 0–100%. In determining an award for FY23 
Corporate objectives, the Board had regard to:

•  The degree of stretch in the target which was set

•  The quality and composition of revenue growth and 

of the earnings delivered

•  The impact of strategic and long-term investments 

on the reported result and measure

•  The effectiveness of cost and operational initiatives 

management 

•  The wider economic context within which the result 

was delivered 

•  Performance against market consensus 

On this assessment, the Board determined to award 
40% of each of the Corporate objectives in determining 
STI award for FY23. 

In relation to Personal objectives, KPI measures were 
assessed in the usual manner and the summary of 
outcomes is set out in Table 1 below.

57

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Table 1 – Joint CEOs FY23 performance objectives and outcomes

Category

Measure

Commentary on performance

Corporate objectives

Shareholder Return

Underlying EPS attributable to 
shareholders. 

Investment Performance

Underlying Return on Equity (ROE)

Metrics focused on maintenance of 
a strong and conservative balance 
sheet position. 

Underlying EPS of 26 cps which is 
below the EPS target which we set at 
>35 cps. Refer to section 4.2.

Underlying ROE (adjusted for 
strategic investment impacts) of 11% 
was below the target of 15%.

Performance against Corporate objectives

40%

Personal objectives 

Strategic and Business Growth initiatives

•  Metrics focused on driving the Group’s 

strategic growth initiatives

•  Julian Biggins has particular metrics 
relating to Real Estate, operating real 
estate and hospitality strategies

Overall business delivered record AUM growth, made a strategic acquisition in the 
US and expanded distribution capability with the opening of a Singapore office. A 
successful brand refresh and website refresh was also delivered.

Introduction of new operating real estate funds in relation to Marinas and launch 
of a Hotel Accommodation strategy during 2023.

•  Chris Wyke has particular metrics 

Reset of Hospitality strategy completed.

relating to Lending and Technology 
and Private Credit strategies

Strong private credit investor demand and loan book growth and performance, 
including the strategic acquisition of Blue Elephant capital, a New York based 
private credit team. Significant momentum in growing the MA Money mortgage 
business, with strong volume growth and completion of its first $500m RMBS 
issuance. Above budget volume growth for Finsure, which was acquired in FY22.

ESG related initiatives

•  Metrics relating to leading the ESG 

initiatives of the firm, including some 
delineation of responsibilities between  
Mr Biggins and Mr Wyke

•  These include risk 

culture related measures

ESG strategies and initiatives developed and presented to the Board. Progress 
achieved in the integration of ESG considerations into investment decision making. 

Emissions measurement and Climate Action Plan were progressed and Asset 
Management operations made further progress in integrating emissions 
measurement practices into Real Estate operations.

Governance and risk framework is included in metrics relating to “G”. Significant 
investment in cyber security initiatives to achieve improved security posture and 
incident response capabilities. This has included significant improvements in the 
effectiveness of cyber and security awareness training and culture. Progressed 
risk framework maturity, delivering multi year risk framework roadmap. 

Leadership, Employee and Culture initiatives

•  Metrics focusing on strong leadership 
of the business, assessed against 
employee belonging and alignment to 
the Group’s culture and values

The refresh of values and drivers in FY23 was an important evolution 
in our cultural expectations and standards. These have been well 
received and integrated into daily practice, including hiring, onboarding 
and performance management.

Leadership in culture and integration of new employees, including leading 
MA Academy lecture series and sponsorship of Emerging Leaders Academy 
programme. 

Focus on leading and sponsoring the integration of acquired businesses into MA 
Financial. 

Other

•  Measures relating to investor relations

 Progress in line with Board set expectations and parameters.

•  Measures relating to innovation

Performance against Personal objectives

Substantially met

58

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20235. 

Executive contracts 

Table 2 – STI opportunity for Executive KMP in FY23

Target STI opportunity1

STI award 

% of target STI awarded

Julian Biggins

Christopher Wyke

Andrew Pridham2

Janna Robertson

Giles Boddy

$1,800,000

$1,800,000

N/A

$500,000

$500,000

$1,100,000

$1,100,000

N/A

$350,000

$350,000

63%

63%

N/A

70%

70%

1.  The maximum opportunity for each Joint CEOs is $1,950,000. The Joint CEOs were awarded 56% of the maximum award. There is no 

maximum opportunity for other KMP.

2.  Andrew Pridham requested to forego the FY23 STI and in accordance with his request, no STI in respect of FY23 has been accrued for or 

will be paid to him.

Table 3 – LTI awards for Executive KMP

Target LTI opportunity (% of FAR) 

LTI opportunity granted ($)

 LTI awarded (% of FAR)

Julian Biggins

Christopher Wyke

Andrew Pridham1

Janna Robertson

Giles Boddy

125–175%

125–175%

N/A

Up to 100%

Up to 100%

$1,000,000

$1,000,000

N/A

$250,000

$500,000

167%

167%

N/A

50%

100%

1.  At the request of Andrew Pridham, no LTI award will be granted to him in March 2024.

The LTI outcomes are calculated in accordance with the methodology outlined in section 3.3 of this report. Any 
equity granted to the Executive Directors will be presented to shareholders for approval in accordance with the 
requirements of the Act.

Remuneration arrangements for Executives are formalised in employment agreements or service contracts 
(contracts). The following table outlines the key terms of the contracts with Executives.

Table 4 – Comparison of Remuneration to prior year

Executive

STI Outcome

LTI Outcome

Awarded Total Remuneration

FY22

FY23

%

FY22

FY23

%

FY22

FY23

%

Julian Biggins

 1,600,000 

 1,100,000 

(31%)

 850,000 

 1,000,000 

18%  3,050,000 

 2,700,000 

(11%)

Christopher Wyke

 1,600,000 

 1,100,000 

(31%)

 850,000 

 1,000,000 

18%  3,050,000 

 2,700,000 

(11%)

Andrew Pridham1

 900,000 

N/A

-

 500,000 

N/A

-

 2,000,000  600,000

(70%)

Janna Robertson

 425,000 

 350,000 

(18%)

 200,000 

 250,000 

25%

 1,125,000 

 1,100,000 

(2%)

Giles Boddy

 N/A 

 350,000 

Graham Lello

 375,000 

 N/A 

 - 

 - 

 N/A 

 500,000 

 75,000 

 N/A 

 - 

 - 

 - 

 1,350,000 

 950,000 

 - 

 - 

 - 

1.  Andrew Pridham requested to forego the FY23 STI and LTI and in accordance with his request, no STI or LTI has been accrued, paid or 

granted to him.

59

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Table 5 – Executive key contract provisions

Name

Term of contract

Notice period from  
the company1

Notice period from 
the executive

Treatment of STI and  
LTI on cessation

Julian Biggins

Ongoing

9 months

9 months

Christopher Wyke

Ongoing

9 months

Andrew Pridham

Ongoing

Janna Robertson

Ongoing

Giles Boddy

Ongoing

Graham Lello2

Ongoing

3 months

3 months

3 months

6 months

9 months

3 months

3 months

3 months

6 months

Refer to section 3 of the 
Remuneration report for the 
treatment of STI and LTI on 
cessation of employment.

Refer to section 3 of the 
Remuneration report for the 
treatment of STI and LTI on 
cessation of employment.

1.  The Group may make payment in lieu of notice and must pay statutory entitlements together with superannuation benefits. No notice 

period or payment in lieu of notice applies if termination was due to serious misconduct.

2.  Ceased being a KMP on 6 March 2023.

Termination payments
During the year, the Group paid Graham Lello termination payments to the sum of AUD 198,764 (FY22: Nil).

6. 

6.1 

Executive remuneration tables

Executive cash value of remuneration realised in FY23

The cash value of remuneration realised by the Executive in FY23 is set out below. This information is considered 
to be relevant as it provides shareholders with a view of the ‘take home pay’ received by the Executive in FY23 and 
may differ from the disclosure of statutory remuneration in Table 7.

Table 6 – Executive value of remuneration in FY23

Executive

Fixed 
remuneration

FY23 Annual STI bonus

Fixed 
remuneration

Variable remuneration

Salary including 
superannuation  
$ 

Cash 
component  
$

Deferred  
equity1 
$

Salary including 
superannuation 
%

Cash  
bonus 
%

Deferred  
equity 
%

Julian Biggins

 600,000 

 715,000 

 385,000 

Christopher 
Wyke

 600,000 

 715,000 

 385,000 

Andrew Pridham

 600,000 

 N/A 

N/A

Janna 
Robertson

 500,000 

 227,500 

 122,500 

Giles Boddy

 413,010 

 227,500 

 122,500 

Graham Lello

 131,323 

 - 

 - 

35%

35%

-

59%

54%

100%

42%

42%

 - 

27%

30%

 - 

23%

23%

 - 

14%

16%

 - 

1.  Amounts disclosed represent the accounting value of the award that will vest in three annual and equal instalments commencing 2025 and 

ending in 2027. The maximum value of the award would be the number of restricted shares at the Company’s share price at the time of vesting.

60

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20236.2 

Statutory executive remuneration in FY23

The below sets out the statutory executive remuneration disclosures which have been prepared in accordance with the Act and Australian Accounting Standards.

Table 7 – Statutory Executive remuneration table

Short-term employee benefits

Long-term benefits

Equity-based benefits

Cash 
salary  
$

Bonus (cash 
component)1  
$

Allowance 
$

Annual 
leave 
$

Non-
monetary 
$

Total  
short-term 
benefits 
$

Super-
annuation 
$

Long  
service 
leave 
$

Bonus 
(deferred 
cash 
component)  
$

Total 
long-term 
benefits  
$

Restricted 
shares 
$

Options & 
rights 
$

Total 
equity-
based 
benefits  
$

Total 
remun-
eration 
$

Performance 
related 
remun-
eration  
%

2023 573,654

715,000

750

(89,296)

15,347

1,215,455

26,346

(4,148)

2022

575,570

942,500

 - 

23,912

12,749

1,554,731

24,430

11,928

2023 573,654

715,000

750

(114,916)

15,486

1,189,974

26,346

(4,079)

2022

575,570

1,040,000

 - 

37,360

13,106 1,666,036

24,430

11,922

2023 573,654

 - 

750

(95,586)

14,912

493,730

26,346

(3,931)

 - 

 - 

 - 

 - 

 - 

22,198

497,215

(131,982)

365,234 1,602,887

36,358

606,669

506,509

1,113,178 2,704,267

22,267

536,930

(131,982)

404,949

1,617,190

36,352

664,062

451,001

1,115,063

2,817,451

22,415

24,473

(19,869)

4,603

520,748

2022 556,820

585,000

 - 

64,375

14,967

1,221,162

24,430

45,851

315,000

385,281

54,829

222,222

277,051

1,883,494

2023 473,654

227,500

1,170

8,499

2022 463,070

269,750

 - 

(1,000)

2023 389,376

227,500

1,170

18,133

2022

 - 

2023

237,354

 - 

 - 

2022 463,070

243,750

 - 

 - 

 - 

 - 

1,826

4,678

 - 

 - 

 - 

 - 

710,823

26,346

1,431

731,820

24,430

5,642

636,179

23,634

474

 - 

 - 

 - 

82

239,262

12,646

(69,267)

 - 

711,498

24,430

18,988

2023 2,821,346

1,885,000

4,590 (271,340)

45,827 4,485,423

141,664

(79,520)

 - 

 - 

 - 

 - 

 - 

 - 

 - 

27,777

157,103

56,172

213,275

951,875

30,072

183,066

145,604

328,670 1,090,562

24,108

42,843

 - 

 - 

 - 

 - 

42,843

703,130

 - 

 - 

(56,621)

145,624

193,956

339,580

522,221

43,418

152,473

112,701

265,174 1,020,090

62,144

1,404,188

(33,705)

1,370,484

5,918,051

2022 2,634,100

3,081,000

 - 

129,325

40,822 5,885,247

122,150

94,331

315,000

531,481

1,661,099 1,438,036

3,099,137 9,515,864

67%

78%

69%

77%

1%

66%

50%

57%

39%

 - 

83%

51%

Executive

Julian Biggins

Christopher Wyke

Andrew Pridham

Janna Robertson

Giles Boddy

Graham Lello2

Total

1.  The cash component of bonuses received in respect of FY23 is expected to be paid in March 2024.
2.  The Board has exercised its discretion to classify Graham Lello as a Good Leaver. He has retained the entirety of his unvested restricted shares and unvested options at a pro-rata basis. The initial valuation and 

vesting profile remains unchanged. 
Equity-based benefits include the accelerated amortisation of the shares and options retained as at termination date.

61

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Non-Executive Director remuneration

7. 

7.1 

NED remuneration policy and fee  
structure

The Group’s NED remuneration policy is designed to 
attract and retain suitably skilled Directors who can 
discharge their roles and responsibilities required in 
terms of good governance, oversight, independence 
and objectivity.

The Board seeks to attract Directors with different 
skills, experience, expertise and diversity.

Under the Group’s Constitution and the ASX listing 
rules, the total annual fee pool for NEDs is determined 
by shareholders. The current maximum aggregate NED 
fee pool of $1,000,000 per annum was approved by 

Table 8 – NED fee structure

shareholders at the 2020 AGM. Within this aggregate 
amount, NED fees are reviewed annually by the 
Committee and set by the Board.

The Committee reviews NED fees against comparable 
companies within the broader general industry 
and taking into account recommendations from 
independent remuneration advisors.

As indicated in the FY22 Remuneration report, the 
Board Committee Chair fees were reviewed in late FY22 
and were effective from 1 January 2023 and have been 
reviewed for FY23.

The table below summarises the annual Board 
and committee fees payable to NEDs (inclusive of 
superannuation). 

Role

FY23

FY22

Role

FY23

FY22

Board fees

Chair

 280,000 

 280,000  Committee 

Chair

45,000

20,000

fees

NED

 120,000 

120,000

Member

 - 

 - 

The payment of Chair committee fees recognises the 
additional time commitment required by NEDs who 
serve in those positions. The Chair of the Board does 
not receive additional fees for being a member of any 
Board committee.

7.2 

Total fees paid to NEDs

Table 9 – Statutory NED remuneration

NEDs do not receive share options, other performance-
based incentives or retirement benefits.

Non-Executive Director

Jeffrey Browne

Kenneth Moelis

Alexandra Goodfellow

Kate Pilcher Ciafone

Simon Kelly

Nikki Warburton

Total

Short-term employee benefits

Cash salary and fees including superannuation 

FY23 
$

FY22 
$

280,000

280,000

 - 

 - 

165,000

140,000

 - 

165,000

120,000

730,000

 - 

140,000

2,959

562,959

62

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023 
8. 

8.1 

Equity instrument reporting 

Shareholding Policy

In FY22 MA Financial introduced a Minimum Shareholding policy. The policy introduced a minimum level of 
shareholding as follows:

•  Non-Executive Directors: 100% of base Directors fees

•  Executive KMP / Senior Executives: 150% of FAR (excluding superannuation)

Those subject to the policy have three years from commencement of employment with the Group to achieve the 
minimum holding. All Non-Executive Directors, Executive KMP and Senior Executives are in compliance with 
the policy.

8.2 

Loan Funded Shares provided to the Executive

The following table details Loan Funded Shares that have been issued to the Executive under the LTI plan (refer to 
section 3).

The LTI granted for FY22 was issued in March 2023. 

Table 10 – Loan Funded Shares – LTI plan

Balance at  
1 Jan 23

Granted as 
remuneration

Vested

Lapsed

Julian Biggins

 765,900 

 639,001 

Christopher Wyke

 765,900 

 639,001 

Andrew Pridham

 216,077 

 375,883 

Janna Robertson

 594,840 

 150,353 

Giles Boddy

 - 

 - 

Graham Lello

 494,840 

 56,382 

 - 

 - 

 - 

 - 

 - 

 - 

Balance at  
31 Dec 23

 1,404,901 

 1,404,901 

 591,960 

 745,193 

 - 

 - 

 - 

 - 

 - 

 - 

(120,640)

 430,582 

62

63

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20238.3  Movements in Executive equity holdings and deferred shares

The details of equity holdings and deferred shares in the Company held by executives (including close family 
members and/or any entity they, or their close family members, control, jointly control or significantly influence) are 
set out in Table 11 below.

There have been no changes to the terms and conditions of these awards since the awards were granted. There are 
no amounts unpaid on any of the shares exercised and all restricted shares and rights are exercised automatically 
when vested.

Table 11 – Equity holdings of Executive KMP

Executive

Equity 
instrument1

Number 
at start of 
year

Granted 
during the 
period2

Vested

Acquired

Disposed

Number at 
reporting 
date

Ordinary shares

5,328,170

Julian Biggins

Share rights

28,866

 - 

 - 

154,551

(28,866)

Restricted shares

221,606

117,881

(125,685)

Ordinary shares

5,328,170

Christopher Wyke

Share rights

29,236

 - 

 - 

161,674

(29,236)

Restricted shares

239,316

130,076

(132,438)

 - 

 - 

 - 

 - 

 - 

 - 

(154,551)

5,328,170

 - 

 - 

 - 

213,802

(461,674)

5,028,170

 - 

 - 

 - 

236,954

19,066

 - 

(1,000,000)

17,969,675

Ordinary shares

18,950,609

Restricted shares

38,132

Ordinary shares

92,968

 - 

 - 

 - 

Andrew Pridham

Janna Robertson

(19,066)

32,678

Restricted shares

66,219

33,739

(32,678)

Ordinary shares

Giles Boddy

Share rights

Restricted shares

 - 

 - 

 - 

Ordinary shares

275,138

Graham Lello3

 - 

 - 

 - 

 - 

 - 

 - 

 - 

25,018

Restricted shares

46,788

30,487

(25,018)

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

19,066

125,646

67,280

 - 

 - 

 - 

300,156

52,257

1.  Ordinary share holding includes directly held shares and beneficial interests in ordinary shares as a result of holdings in the Existing Staff 

Trusts (as defined in the Glossary in the Additional Information section of the Annual Report).

2.  Restricted shares granted as part of the FY22 short-term incentive award in March 2023.

3.  Movements and balance up to and as at termination date.

64

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 20238.4  Movements in Non-Executive Director equity holdings

The number of equity instruments in the Company held (directly and nominally) by Non-Executive Directors or their 
related parties (their close family members and/or any entity they, or their close family members, control, jointly 
control or significantly influence) are set out below.

Table 12 – Equity holdings of Non-Executive Directors

Executive

Equity 
instrument

Number  
at start  
of year

Granted 
during  
the year

Vested

Purchased

Disposed

Number 
at signing 
date

Jeffrey Browne

Ordinary shares

781,250

Kenneth Moelis

Ordinary shares

 - 

Alexandra Goodfellow Ordinary shares

32,371

Kate Pilcher Ciafone

Ordinary shares

 - 

Simon Kelly

Ordinary shares

65,161

Nikki Warburton

Ordinary shares

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

30,000

10,000

(631,250)

150,000

 - 

 - 

 - 

 - 

 - 

 - 

32,371

 - 

95,161

10,000

9. 

Loans to KMP

There were no loans to KMP during the year. Loan balances under the limited recourse Loan Funded Share Plan 
represent a transaction with a KMP that is an in-substance option and not a loan to the KMP.

10.  Other transactions and balances with KMP and their related parties

Transactions conducted by KMP (and their related parties) during the year with the Company and its subsidiaries, 
joint ventures and associates of the Group are described below.

In 2019 Mr Pridham and Mr Biggins entered into property management service arrangements with the Group on the 
same terms offered to third-party investors in a property managed by the Group. Total management fees payable 
by Mr Pridham and Mr Biggins for FY23 amounted to $51,872 and $11,598 respectively.

65

Remuneration report (continued)MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Auditor’s independence declaration

66

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of MA Financial Group Limited I declare that, to the best of my knowledge and belief, in relation to the audit of MA Financial Group Limited for the financial year ended 31 December 2023 there have been: i.no contraventions of the auditor independence requirements as set out in theCorporations Act 2001 in relation to the audit; andii.no contraventions of any applicable code of professional conduct in relation to the audit.KPM_INI_01 PAR_SIG_01 PAR_NAM_01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01 KPMG Shaun Kendrigan  Partner Sydney 22 February 2024 Small Caps 
Conference

Contents

Statement of profit or loss and other comprehensive income 

Statement of financial position 

Statement of changes in equity 

Statement of cash flows 

1  Basis of preparation and material accounting policies  

71

72

73

74

75

2  Application of new and revised Australian Accounting Standards  77

3  Segment information  

4  Fee and commission income 

5  Fee and commission expense 

6 

7 

Interest income 

Investment income 

8  Employee expenses 

9  Finance costs 

10  Other expenses 

11 

Income tax 

12  Cash and cash equivalents 

13  Receivables 

14  Loans receivable 

15  Loss allowance 

16  Contract assets and liabilities 

17  Other financial assets and liabilities 

18  Property, plant and equipment 

19  Right-of-use assets and lease liabilities 

20  Investments in associates and joint ventures 

21 

Intangible assets 

78

83

85

86

86

87

87

87

88

91

93

94

95

99

100

102

104

106

110

69

MA Financial Group | 2023 Annual ReportContents (continued)

22  Trade and other payables 

23  Borrowings 

24  Provisions 

25  Financial risk management 

26  Fair value of financial assets and financial liabilities 

27  Contributed equity 

28  Earnings per share 

29  Dividends 

30  Reserves and non-controlling interests 

31  Share-based payments 

32  Key management personnel compensation 

33  Related party transactions 

34  Acquisitions and disposals of subsidiaries 

35  Parent entity disclosures 

36  Deed of cross guarantee 

37  Structured entities 

38  Auditor’s remuneration 

39  Commitments 

40  Events after the reporting date 

113

113

116

117

124

127

128

129

130

131

138

138

139

143

144

146

147

147

147

70

MA Financial Group | 2023 Annual ReportStatement of profit or loss and other comprehensive 
income
For the year ended 31 December 2023

Fee and commission income

Fee and commission expense

Net fee and commission income

Share of net profits from associates

Interest income

Investment income

Other income

Total income

Employee expenses

Marketing and business development

Information, technology and data

Depreciation and amortisation

Finance costs

Credit loss allowance

Other expenses

Total expenses

Profit before tax

Income tax expense

Profit after income tax

Other comprehensive (loss)/income, net of tax

Items that will not be subsequently reclassified to profit or loss:

Fair value loss on investments in equity instruments 
designated at FVTOCI

Share of other comprehensive (loss)/income from associates

Items that may be subsequently reclassified to profit or loss:

Foreign exchange movements on translation

Total other comprehensive (loss)/income, net of tax

Total comprehensive income

Profit attributable to:

Owners of the Company

Non-controlling interests

Total comprehensive income attributable to:

Owners of the Company

Non-controlling interests

Earnings per share

From continuing operations

Basic (cents per share)

Diluted (cents per share)

31 Dec 2023 
Consolidated
$’000

Note

4

5

20

6

7

8

18,19,21

9

15

10

11

28

28

 765,376 

 (527,031)

238,345

 2,086 

 145,051 

 6,538 

 750 

392,770

 166,174 

 13,776 

 10,731 

 17,714 

 113,048 

 851 

 26,997 

 349,291 

 43,479 

 (12,400)

 31,079 

 (283)

 (6,300)

 (6,583)

 (2,937)

 (2,937)

 (9,520)

 21,559 

 28,517 

 2,562 

 31,079 

18,997

2,562

21,559

17.8

17.3

31 Dec 2022
Consolidated
$’000

 709,727 

 (443,509)

266,218

 1,389 

 58,633 

 6,873 

 1,885 

334,998

 167,047 

 11,454 

 10,144 

 17,241 

 40,694 

 1,887 

 25,562 

 274,029 

 60,969 

 (16,114)

 44,855 

 (920)

 1,608 

 688 

 211 

 211 

 899 

 45,754 

 44,855 

 - 

 44,855 

45,754

 - 

45,754

28.0

26.9

The above Statement of profit or loss and other comprehensive income is to be read in conjunction with the 
accompanying notes. 

71

MA Financial Group | 2023 Annual ReportStatement of financial position

Assets

Cash and cash equivalents

Receivables

Loans receivable

Income tax receivable

Other financial assets

Contract assets

Property, plant and equipment

Investments in associates and joint ventures

Other assets

Restricted cash

Right-of-use assets

Deferred tax assets

Intangible assets

Goodwill

Total assets

Liabilities

Trade and other payables

Income tax payable

Other financial liabilities

Borrowings

Contract liabilities

Provisions

Lease liabilities

Deferred tax liabilities

Total liabilities

Net assets

Equity 

Contributed equity

Reserves

Retained earnings

Equity attributable to owners of the Company

Non-controlling interests

Total equity

31 Dec 2023 
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

Note

12

13

14

11

17

16

18

20

19

11

21

21

22

11

17

23

16

24

19

11

27

30

30

 180,319 

86,416

 2,079,716 

 7,192 

 186,939 

 705,285 

 4,263 

 50,771 

 9,601 

 700 

 65,983 

 739 

 54,292 

 141,648 

 144,589 

 88,483 

 855,482 

 - 

 196,312 

 607,232 

 5,973 

 91,586 

 9,086 

 700 

 61,773 

 - 

 56,849 

 128,169 

 3,573,864 

 2,246,234 

65,089

 - 

 102,415 

 2,153,496 

 661,158 

 40,440 

 71,510 

 18,596 

 77,805 

 3,849 

 116,419 

 940,089 

 571,365 

 46,629 

 64,952 

 15,539 

 3,112,704 

 1,836,647 

 461,160 

 409,587 

 278,737 

 44,698 

 74,101 

 397,536 

 63,624 

 461,160 

 275,087 

 54,011 

 80,489 

 409,587 

 - 

 409,587 

The above Statement of financial position is to be read in conjunction with the accompanying notes. 

72

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Statement of changes in equity

Consolidated

Attributable to the owners of the Company

Contributed 
equity  
$’000

Note

Reserves 
$’000

Retained 
earnings  
$’000

Total  
$’000

Non-
controlling 
interests 
$’000

Balance as at 1 January 2022

 254,990 

 48,491 

 66,552 

 370,033 

Profit after income tax

Other comprehensive income, net of tax

Foreign currency translation

Total comprehensive income

Payment of dividends

Issue of ordinary shares

Shares vested under deferred shares 
plan 

Share buy-back

Treasury shares

Equity transaction costs

Share-based payments

 - 

 - 

 - 

 - 

 - 

 44,188 

30

29

27

 - 

 44,855 

 44,855 

 688 

 211 

 - 

 - 

 688 

 211 

 899 

 44,855 

 45,754 

 (30,918)

 (30,918)

 - 

 - 

 - 

 - 

 - 

 - 

 44,188 

 - 

 (4,104)

 (22,782)

 (131)

 7,547 

 2,926 

 (2,926)

 (4,104)

 (22,782)

 (131)

 - 

 - 

 - 

 - 

 7,547 

Balance as at 31 December 2022

 275,087 

 54,011 

 80,489 

 409,587 

Balance as at 1 January 2023

 275,087 

 54,011 

 80,489 

 409,587 

 20,097 

 4,621 

 (30,918)

 (6,200)

Profit after income tax

Other comprehensive income, net of tax

Foreign currency translation

Total comprehensive income

Payment of dividends

Issue of ordinary shares

30

29

27

 - 

 - 

 - 

 - 

 - 

 17,064 

 - 

 28,517 

 28,517 

 2,562 

 31,079 

 (6,583)

 (2,937)

 - 

 - 

 (6,583)

 (2,937)

 - 

 - 

 (6,583)

 (2,937)

 (9,520)

 28,517 

 18,997 

 2,562 

 21,559 

 (34,905)

 (34,905)

Shares vested under deferred shares plan

 912 

 (912)

Share buy-back

Treasury shares

Equity transaction costs

Share-based payments

Movement in non-controlling interests

 (1,027)

 (13,273)

 (26)

 - 

 - 

 - 

 - 

 - 

 1,119 

 - 

 17,064 

 - 

 (1,027)

 (13,273)

 (26)

 1,119 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 61,062 

 61,062 

Balance as at 31 December 2023

 278,737 

 44,698 

 74,101 

 397,536 

 63,624 

 461,160 

 3,650 

 207 

 (34,905)

 (31,048)

 61,062 

 30,014 

The above Statement of changes in equity is to be read in conjunction with the accompanying notes. 

73

Total 
equity
$’000

 370,033 

 44,855 

 688 

 211 

 45,754 

 (30,918)

 44,188 

 - 

 (4,104)

 (22,782)

 (131)

 7,547 

 (6,200)

 409,587 

 409,587 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 (34,905)

 17,064 

 - 

 (1,027)

 (13,273)

 (26)

 1,119 

 - 

 - 

 - 

 - 

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 202331 Dec 2023 
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

Note

669,558

 571,103 

Statement of cash flows

Cash flows from operating activities 

Receipts from customers

Payments to suppliers and employees

Amounts advanced to third parties

Proceeds from warehouse notes and fund preferred units

Interest received

Interest paid

Income taxes paid

Net cash inflows from operating activities

12

Cash flows from investing activities

Net proceeds/(payments) for the sale and acquisition of investments

Distributions received from investments

Receipts from employee loans

Net proceeds from the sale and acquisition of shares in associates

Payments to acquire subsidiaries, net of cash acquired

34

Payments to acquire property, plant and equipment and intangible assets

Net cash inflows/(outflows) from investing activities

Cash flows from financing activities 

Net proceeds from the issue of shares

Payments for treasury shares

Share buy-back

Net (payment)/proceeds from exercise of share options

Cash transferred from restricted cash accounts

Payments of lease liabilities

Interest on lease liabilities

Net proceeds/(payments) from borrowings

Dividends paid to shareholders

Payments to non-controlling interests

Net cash outflows from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Effects of exchange rate movements on cash and cash equivalents

 (668,540)

 (1,156,406)

 1,164,217 

 136,452 

 (103,736)

 (19,361)

 22,184 

 15,420 

 11,538 

 495 

 2,444 

 (6,496)

 (4,115)

 19,286 

 - 

 (4,408)

 (1,027)

 (1,183)

 - 

 (7,090)

 (4,354)

 49,190 

29

 (34,905)

 (2,562)

 (6,339)

 40,360 

 144,589 

599

Cash and cash equivalents at the end of the year

12

 180,319 

The above Statement of cash flows is to be read in conjunction with the accompanying notes. 

 (519,161)

 (336,130)

 498,768 

 54,247 

 (35,189)

 (21,249)

 212,389 

 (376)

 9,546 

 35 

 25,784 

 (146,910)

 (12,866)

 (124,787)

 22,928 

 (9,920)

 (4,104)

 91 

 1,800 

 (5,948)

 (3,513)

 (162,098)

 (30,918)

 - 

 (191,682)

 (104,080)

 247,062 

 1,607 

 144,589 

74

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements

1 

Basis of preparation and material accounting policies 

MA Financial Group Limited (Company) is a listed 
public company limited by shares, incorporated and 
domiciled in Australia.

The Financial Report for MA Financial Group and 
its controlled entities (Group) for the year ended 
31 December 2023 was authorised for issue in 
accordance with a resolution of the Directors on 22 
February 2024.

Basis of preparation 

a 
This is a general purpose financial report which has 
been prepared in accordance, and complies, with 
Corporations Act 2001 (Cth) (the Act), Australian 
Accounting Standards and other authoritative 
pronouncements of the Australian Accounting 
Standards Board (AASB) and International Financial 
Reporting Standards (IFRS) as issued by the 
International Accounting Standards Board (IASB). 

The Financial Report comprises the consolidated 
financial statements of the Group and accompanying 
notes. MA Financial Group Limited is a for-profit 
company for the purposes of preparing this 
Financial Report.

The Group has prepared the Financial Report on 
the basis that it will continue to operate as a going 
concern. The Directors have, at the time of approving 
the financial statements, a reasonable expectation 
that the Group has adequate resources to continue in 
operational existence for the foreseeable future.

Where necessary, comparative information has been 
restated to conform to any changes in presentation 
made in this Financial Report.

Unless otherwise stated, amounts in this Financial 
Report are presented in Australian dollars and have 
been prepared on a historical cost basis, except 
for financial assets that are measured at fair value. 
Historical cost is generally based on the fair values 
of the consideration given in exchange for goods and 
services. The assets and liabilities disclosed in the 
Statement of financial position are grouped by nature 
and listed in an order that reflects their relative liquidity. 
In the disclosure notes, the current/non-current split is 
between items expected to be settled within 12 months 
(current) and those expected to be settled greater than 
12 months (non-current). 

In accordance with the Act, these financial statements 
present the results of the Group only. Supplementary 
information about the parent entity is disclosed in 
note 35.

The principal accounting policies adopted in the 
preparation of this Financial Report and that of the 
previous financial year are set out below and disclosed 
individually within each of the relevant notes in the 
Financial Report. These policies have been consistently 
applied to all the financial years presented and are 
applicable to both the Group and the Company, unless 
otherwise stated.

Significant accounting judgements, estimates 
and assumptions
The preparation of the Financial Report requires the 
use of certain critical accounting estimates. It also 
requires management to exercise judgement in the 
process of applying the accounting policies. The key 
estimates and assumptions that have a significant risk 
of causing a material adjustment to the recognised 
amounts are disclosed individually within each of the 
relevant notes to the Financial Report.

Estimates and judgements are continually evaluated 
and are based on historical experience and other 
factors, including reasonable expectations of 
future events.

Comparatives

b 
Where necessary, comparative information has been 
restated to conform to any changes in presentation 
made in this Financial Report. For clearer presentation, 
the Group has realigned/reclassified the revenue and 
expense categories and reclassified foreign exchange 
movements on translation as an item that may be 
subsequently reclassified to profit or loss in the 
Statement of profit or loss and other comprehensive 
income, reallocated lending trail commission income 
to at a point in time in note 4 and reclassified cashflow 
movements in distributions from investments and 
amounts advanced to third parties from investing 
activities to operating activities in the Statement 
of cash flows. There has been no effect on the 
comparative year results, net assets or equity due to 
the reclassification.

Rounding of amounts

c 
Unless otherwise stated, amounts in the Directors’ 
Report and the Financial Report have been rounded 
to the nearest thousand dollars under the option 
available to the Group under ASIC Corporations 
Instrument 2016/191.

75

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023 
1 

Basis of preparation and material accounting policies (continued)

Foreign currency

d 
Both the presentation currency and the functional 
currency of the Company and its controlled Australian 
entities are Australian dollars. A number of foreign 
controlled entities have a functional currency other 
than Australian dollars.

Transactions in foreign currency are translated into 
the functional currency at the foreign exchange rate 
ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies 
are retranslated into Australian dollars at the 
foreign exchange rate at the Statement of financial 
position date.

Non-monetary assets and liabilities that are 
measured at historical cost in foreign currency are 
translated using the exchange rate as at the date of 
the transaction. Non-monetary assets and liabilities 
measured at fair value in a foreign currency are 
translated to the functional currency using exchange 
rates at the date when fair value was determined. 

Goods and services tax

e 
Revenues, expenses and assets are recognised net of 
the amount of goods and services tax (GST), except:

(i)  where the amount of GST incurred is not 

recoverable from the taxation authority, it is 
recognised as part of the cost of acquisition of an 
asset or as part of an item of expense; or

(ii)  for receivables and payables which are recognised 

inclusive of GST.

The net amount of GST recoverable from, or payable 
to, the taxation authority is included as part of 
receivables or payables.

Cash flows are included in the cash flow statement 
on a gross basis. The GST component of cash flows 
arising from investing and financing activities which is 
recoverable from, or payable to, the taxation authority 
is classified within operating cash flows.

76

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)2 

Application of new and revised Australian Accounting Standards

New accounting standards, amendments and interpretations that are effective in the 
current financial year
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian 
Accounting Standards Board (the AASB) that are relevant to the Group’s operations and mandatorily effective on or 
after 1 January 2023, including:

•  AASB 2021–2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition 

of Accounting Estimates

•  AASB 2021–5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities 

arising from a Single Transaction

The new and revised Standards and Interpretations adopted during the year do not materially affect the Group’s 
accounting policies or any of the amounts recognised in the financial statements.

Accounting standards and interpretations issued but not yet effective

Standard/Interpretation

AASB 2022–6 Amendments to Australian Accounting 
Standards – Non-current Liabilities with Covenants

AASB 2022–5 Amendments to Australian Accounting 
Standards – Lease Liability in a Sale and Leaseback

AASB 2023–1 Amendments to Australian Accounting 
Standards – Supplier Finance Arrangements

AASB 2014-10 Amendments to Australian Accounting 
Standards – Sale or Contribution of Assets between an 
Investor and its Associate or Joint Venture, AASB 2015-10 
Amendments to Australian Accounting Standards – Effective 
Date of Amendments to AASB 10 and AASB 128 and AASB 
2017-5 Amendments to Australian Accounting Standards – 
Effective Date of Amendments to AASB 10 and AASB 128 and 
Editorial Corrections, AASB 2021-7 Amendments to Australian 
Accounting Standards – Effective Date of Amendments to 
AASB 10 and AASB 128 and Editorial Corrections

Effective for 
annual reporting 
periods beginning 
on or after 

Expected to be  
initially applied  
in the financial  
year ending

1 January 2024

31 December 2024

1 January 2024

31 December 2024

1 January 2024

31 December 2024

1 January 2025

31 December 2025

77

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)3 

Segment information 

AASB 8 Operating Segments requires the 
‘management approach’ to disclose information 
about the Group’s reportable segments. The financial 
information is reported on the same basis as used 
by senior management and the Board of Directors 
for evaluating operating segment performance and 
for deciding how to allocate resources to operating 
segments. The segment note is prepared on the same 
basis as the Group’s non-IFRS (Underlying) financial 
measures. Please refer to the Directors’ Report for an 
explanation of why the Directors believe the Underlying 
measures are useful.

The Board of Directors is considered to be the Chief 
Operating Decision Maker (CODM).

The Group is organised into the following 
business segments:

•  Asset Management

•  Lending & Technology

•  Corporate Advisory & Equities (CA&E)

The Corporate Services segment represents the 
unallocated costs associated with the central 
executives and corporate support functions. Items of 
income and expenses within the Corporate Services 
segment also include the net result of managing the 
Group’s liquidity and funding requirements.

3.1 

Services from which reportable 
segments derive their revenues

The Asset Management segment incorporates the 
provision of asset management services, principal co-
investment and strategic investments. During the year, 
the Group expanded its Asset Management segment 
by acquiring Blue Elephant Capital Management 
LLC, Blue Elephant Partner LLC and Blue Elephant 
Financing LLC (collectively Blue Elephant), a SEC-
regulated specialty credit asset manager based in 
New York.

The Lending & Technology segment includes lending 
platforms for the provision of loan funding, residential 
mortgages and financial technology including 
mortgage aggregation services. 

The Corporate Advisory & Equities segment provides 
corporate advice, underwriting and institutional 
stockbroking services.

The main items of profit or loss and other 
comprehensive income used by management to assess 
each business are Underlying revenue, Underlying 
Earnings Before Interest, Tax, Depreciation and 
Amortisation (EBITDA) and Underlying Net Profit 
After Tax.

Information regarding these segments is presented in 
section 3.2. The accounting policies of the reportable 
segments are the same as the Group’s reporting 
policies, with the exception of adjustments made to the 
Underlying results.

78

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)3 

Segment information (continued)

3.2 

Segment results

Depreciation, amortisation and net interest expense are not disclosed by segment as they are not provided to the 
CODM and are only reported on a Group basis. Assets and liabilities are not disclosed as they are not provided to 
the CODM. The following is an analysis of segment performance:

Asset 
Management
$’000

Lending & 
Technology
$’000

CA&E
$’000

Corporate 
Services
$’000

Total 
Underlying 
segment
$’000

Adjustments4
$’000

Statement of 
comprehensive 
income
$’000

31 December 2023

Revenue1 

Staff costs

 176,071 

 44,653 

 48,279 

 873 

 269,876 

 122,894 

 392,770 

 (75,754)

 (23,198)

 (34,284)

 (20,535)

 (153,771)

 (12,403)

 (166,174)

Non-staff costs

 (18,094)

 (7,401)

 (7,142)

 (1,903)

 (34,540)

 (17,815)

 (52,355)

EBITDA2 

 82,223 

 14,054 

 6,853 

 (21,565)

 81,565 

 92,676 

 174,241 

Depreciation and amortisation

Interest expense3 

Profit before tax

Income tax expense

Net profit after income tax

Other comprehensive income

Total comprehensive income

31 December 2022

Revenue1

Staff costs

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 (12,954)

 (4,760)

 (17,714)

 (9,184)

 (103,864)

 (113,048)

 59,427 

 (15,948)

 43,479 

 (17,828)

 5,428 

 (12,400)

 41,599 

 (10,520)

 - 

 (9,520)

 41,599 

 (20,040)

 31,079 

 (9,520)

 21,559 

 197,790 

 41,096 

 61,550 

 1,363 

 301,799 

 33,199 

 334,998 

 (74,299)

 (19,428)

 (39,987)

 (22,323)

 (156,037)

 (11,010)

 (167,047)

Non-staff costs

 (20,014)

 (6,057)

 (7,581)

 (5,390)

 (39,042)

 (10,005)

 (49,047)

EBITDA2

 103,477 

 15,611 

 13,982 

 (26,350)

 106,720 

 12,184 

 118,904 

Depreciation and amortisation

Interest expense3

Profit before tax

Income tax expense

Net profit after income tax

Other comprehensive income

Total comprehensive income

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 (11,121)

 (6,120)

 (17,241)

 (7,834)

 (32,860)

 (40,694)

 87,765 

 (26,796)

 (26,329)

 10,215 

 61,436 

 (16,581)

 - 

 899 

 60,969 

 (16,114)

 44,855 

 899 

 61,436 

 (15,682)

 45,754 

1.  Revenue refers to total income on the Statement of profit or loss and other comprehensive income.
2.  Statutory EBITDA is not an IFRS measure but has been presented to provide a comparable measure to the Underlying result.
3.  Interest expense is referred to as finance costs in the Statement of profit or loss and other comprehensive income.
4.  Refer to the reconciliation of the Underlying segment to statutory measures.

79

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)3 

Segment information (continued)

3.2 

Segment results (continued)

A reconciliation of the Underlying segment measures to the statutory measures is as follows:

Note

Revenue1 
$’000

EBITDA 
$’000

NPAT 
$’000

Comprehensive  
income 
$’000

Statutory result for the year ended 31 December 2023

 392,770 

 174,241 

 31,079 

 21,559 

Differences in measurement

Business acquisition adjustments

Net loss on investments

Adjustments relating to associates

Software development adjustments

Differences in classification

Adjustments relating to Lending Trusts2

Credit investments

Interest income

Expense allocations

Tax on adjustments

Total adjustments

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

 - 

 - 

 4,024 

 - 

 5,544 

 10,964 

 - 

 4,024 

 4,065 

 - 

 4,024 

 3,522 

 10,964 

 2,427 

 12,838 

 3,522 

 (107,759)

 (103,669)

 (2,562)

 (2,562)

 (851)

 - 

 (2,640)

 (2,640)

 (15,668)

 - 

 - 

 - 

 - 

 - 

 - 

 (5,428)

 (122,894)

 (92,676)

 10,520 

Underlying results for the year ended 31 December 2023

 269,876 

 81,565 

 41,599 

Statutory result for the year ended 31 December 2022

 334,998 

 118,904 

 44,855 

 45,754 

Differences in measurement

Business acquisition adjustments

Net (gain)/loss on investments

Adjustments relating to associates

Software development adjustments

Differences in classification

Adjustments relating to Lending Trusts2

Credit investments

Interest income

Expense reallocations

Tax on adjustments

Total adjustments

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

 - 

 (149)

 3,716 

 (149)

 9,836 

 (149)

 14,773 

 14,773 

 14,773 

 - 

 3,162 

 3,162 

 (33,494)

 (32,183)

 - 

 (2,255)

(353)

(353)

 (1,150)

 (1,150)

 (10,924)

 - 

 - 

 - 

 - 

 - 

 (33,199)

 (12,184)

 16,581 

Underlying results for the year ended 31 December 2022

 301,799 

 106,720 

 61,436 

 (10,688)

 (12,155)

 - 

 - 

 - 

 (7,149)

 20,040 

 41,599 

 9,836 

 2,623 

 12,569 

 3,162 

 - 

(353)

 - 

 - 

 15,682 

 61,436 

1.  Revenue refers to total income on the Statement of profit or loss and other comprehensive income.
2.  Lending Trusts refers to residential mortgage-backed securitisation trusts, Specialty Lending trusts and Credit Funds in the Priority Income 

Fund strategies that the Group manages and consolidates, excluding amounts attributable to non-controlling interests.

80

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)3 

Segment information (continued)

3.2 

Segment results (continued)

Differences in measurement
(a)  The Underlying treatment removes one-off 

Differences in classification
(e)  The Underlying treatment records the net 

distributions received from the Lending Trusts in 
Underlying revenue. As such interest and other 
expenses are reclassified to interest income to 
reflect this net position.

(f)  The Underlying expected credit loss (ECL) 

expenses are reclassified from Statutory expense 
to Underlying revenue to be consistent with how 
management view the movement in the value of 
investments. 

(g) 

Interest income on cash and bank balances of 
$2.6 million (31 December 2022: $1.2 million) is 
reclassified to Underlying interest expense.

(h)  The Underlying adjustment reclassifies revenue 

against those expenses that have been recovered 
to reflect the net nil impact to the Group.

transaction costs related to the acquisition of 
subsidiaries. In addition, the Underlying treatment 
removes earn-out cash and share-based 
payments to vendors, who are now employees 
of the Group, that are required to be recognised 
under IFRS as either salary and wages or share-
based payment expenses. During the year $5.5m 
of expenses (31 December 2022: $3.7 million) 
related to business acquisitions has been removed 
from Underlying EBITDA. Underlying NPAT 
also excludes the non-cash IFRS expenditure 
relating to the amortisation of intangible assets, 
recognised in a business combination, of $5.4 
million (31 December 2022: $6.1 million). 

(b)  The Underlying treatment only recognises realised 

gains/losses on disposal of financial investments 
in Underlying revenue. The Underlying treatment 
does not include unrealised gains and losses on 
financial investments, in line with the change in 
approach announced during 2022. During the year, 
unrealised gains on financial investments of $0.5 
million have been excluded from the Underlying 
result (31 December 2022: $2.9 million loss). The 
adjustment also removes the foreign currency 
translation loss for the Group’s offshore entities of 
$2.9 million (31 December 2022: $0.2 million gain).

(c)  The Underlying treatment records dividends 
and distributions receivable from associates 
in Underlying revenue as opposed to the IFRS 
treatment of recording the Group’s share 
of accounting profit or loss of an associate. 
Underlying revenue also recognises the realised 
gains/losses on any disposal of an investment 
in associate.

(d)  The Underlying treatment capitalises and 

amortises certain operational platform and 
software development costs that are required to 
be expensed per accounting standards.

81

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)3 

Segment information (continued)

3.3 

 Revenue for major products and services

The table below represents a disaggregation of fee and commission income by operating segment:

Fee and commission income

Management fees

Distribution fees

Transaction fees

Performance fees

Expense recoveries

Upfront commission income

Trail commission income

Service fees

Corporate advisory services

Equity services

Total fee and commission income

Operating segment

Asset Management

Asset Management

Asset Management

Asset Management

Asset Management

Lending & Technology

Lending & Technology

Lending & Technology

CA&E

CA&E

31 Dec 2023 
Consolidated 
$’000

31 Dec 2022 
Consolidated 
$’000

 98,187 

 6,415 

 42,445 

 10,806 

 12,051 

 262,029 

 264,433 

 19,715 

 43,236 

 6,059 

 765,376 

 85,155 

 5,988 

 34,466 

 56,132 

 8,745 

 198,072 

 236,028 

 14,970 

 64,462 

 5,709 

 709,727 

3.4 

 Geographical information

The Group primarily operates in Australia.

3.5 

 Information about major customers

No single customer contributed 10% or more to Group revenue in 2023 (2022: None). 

82

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)4 

Fee and commission income

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

Timing of revenue recognition

At a point in time

Success fees

Upfront commission income

Trail commission income

Other commission income

Expense recoveries

Commission and brokerage income

Facilitation and transaction fees 

Total revenue earned at a point in time

Over time

Retainer fees

Service fees

Performance fees

Distribution fees

Management fees

Total revenue earned over time

Total fee and commission income

Fee and commission income by segment

At a point in time

Asset Management

Lending & Technology

Corporate Advisory & Equities

Total revenue earned at a point in time

Over time

Asset Management

Lending & Technology

Corporate Advisory & Equities

Total revenue earned over time

Total fee and commission income

 37,284 

 262,029 

 261,213 

 3,220 

 12,173 

 6,059 

 42,445 

 624,423 

 5,830 

 19,715 

 10,806 

 6,415 

 98,187 

 140,953 

 765,376 

 54,496 

 526,462 

 43,465 

 624,423 

 115,408 

 19,715 

 5,830 

 140,953 

 765,376 

 58,480 

 198,072 

 234,145 

 1,883 

 8,975 

 5,709 

 34,466 

 541,730 

 5,752 

 14,970 

 56,132 

 5,988 

 85,155 

 167,997 

 709,727 

 43,212 

 434,100 

 64,418 

 541,730 

 147,275 

 14,970 

 5,752 

 167,997 

 709,727 

Accounting policy
Revenue is recognised either at a point in time or over 
time, when (or as) the Group satisfies performance 
obligations. Revenue earned by the Group from its 
contracts with customers primarily consists of the 
following categories of fee and commission income: 

Management fees, performance fees and other 
fees from providing asset management services
The Group earns management fees, performance 
fees and other fees (such as distribution, facilitation, 
transaction and arranger fees) for providing asset 
management services for listed and unlisted funds, 

83

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)4 

Fee and commission income (continued)

Accounting policy (continued)

managed accounts and co-investment arrangements. 
The provision of asset management services is 
typically a single performance obligation.

The Group also earns management fees for providing 
hotel and retail property management services that 
are recognised on a straight-line basis throughout the 
year as the Group considers the performance of such 
services as a series of distinct services with a similar 
pattern of transfer.

Management and distribution fees are recognised over 
the life of the contract as asset management services 
are provided. Performance fees are based on returns 
in excess of a specified benchmark market return, over 
the contract period. The Group recognises performance 
fees only to the extent that it is highly probable that 
performance hurdles are met, and a significant reversal 
of cumulative fees to date will not occur.

Facilitation, transaction and arranger fees are earned 
for successful transactions and arrangements relating 
to assets and funds managed by the Group. Revenue 
is recognised when the transaction or arrangement 
is completed in line with the terms within the 
underlying agreements.

Upfront commission, trail commission and 
service fees
The Group provides loan origination services and 
receives upfront commissions on the settlement 
of loans. Additionally, the lender normally pays a 
trail commission over the life of the loan. Upfront 
commissions are recognised upon the loans being 
settled and receipt of commission, net of clawbacks. 
Commissions may be clawed back by lenders in 
accordance with underlying contracts. These potential 
clawbacks are estimated based on historical data and 
recognised at the same time as upfront commissions.

The Group receives trail commissions from lenders on 
settled loans, originated by authorised brokers, over the 
life of the loan based on the loan balance outstanding. 
On initial recognition, the Group recognises a contract 
asset at fair value, being the expected future trail 
commission receivable, discounted to its net present 
value in line with the expected value method under 
AASB 15 Revenue from Contracts with Customers 
(AASB 15). On subsequent measurement, the contract 
asset is measured at amortised cost.

The Group earns subscription income for providing 
access to its proprietary loan origination platform, 

Infynity, and income for providing compliance and 
administrative services to the brokers. The Group 
recognises the income from these services over time 
as performance obligations are satisfied.

Success fees on mergers and acquisitions, 
advisory and underwriting fees
The Group earns revenue through its role as advisor on 
corporate transactions as well as its role as manager 
and underwriter of equity and debt issuances. The 
revenue from these arrangements is recognised at a 
point in time, and when it has been established that 
the customer has received the benefit of the service 
and the performance obligations is satisfied. This is 
typically at the time of closing the transaction.

Management of capital raising and underwriting of 
equity or debt issuances are typically satisfied on the 
allocation date of the underwritten securities.

Where contracts contain rights to invoice upon 
reaching certain milestones, the Group assesses 
whether distinct services have been transferred at 
these milestones and accordingly recognises revenue, 
otherwise the fee recognition is deferred until such time 
the performance obligation has been completed.

Commission and brokerage income
The Group is remunerated for the provision of security 
trading services in line with customer contracts. The 
brokerage and commission income related to this 
service is recognised on trade date and is presented 
net of any rebates.

Key estimates and assumptions
Performance fees
Determining the amount and timing of performance 
fees to be recognised involves judgement, the use of 
estimates and consideration of a number of criteria 
relating to the fund or managed investment in which 
the asset(s) are held. Performance fees are recognised 
when it is highly probable that a significant reversal 
of the fee will not occur. Factors that are taken into 
consideration include:

• 

• 

the proportion of assets already realised

returns on assets realised to-date

•  downside valuation on remaining unrealised assets 

and reliability of those estimates

•  nature of unrealised investments and their returns

84

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)4 

Fee and commission income (continued)

Key estimates and assumptions (continued)

Trail commission income
On initial recognition, the Group recognises a contract 
asset at fair value, which represents management’s 
estimate of the trail commission to be received from 
lenders on settled loans. The use of the expected 
value approach of estimating trail commission income 
requires significant judgement as assumptions are 
made using a variety of inputs, including the expected 
loan run-off rate and the discount rate, that are 
determined by management (refer to note 16).

Success fees, advisory and underwriting fees
Determining the timing of fees to be recognised from 
the provision of advisory services involves judgement 
and consideration of factors, such as: 

•  determination of identifiable performance obligations 

•  any key milestones that were met and not met

•  historical recognition fee revenue

•  whether benefits have been passed to the customer 
and performance obligations have been satisfied

Fee and commission expense

5 
Lending fee and commission expense

Other fee and commission expense

Total fee and commission expense

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 (506,739)

 (20,292)

 (527,031)

 (417,305)

 (26,204)

 (443,509)

Accounting policy
The Group remits trail commission payments to 
authorised brokers based on the loan balance 
outstanding and in accordance with the individual 
agreements with the authorised brokers and 
recognises this as a contract liability. The contract 
liability is initially measured at fair value, being the net 
present value of the expected future trail commission 
payable and subsequently measured at amortised cost. 

Other fee and commission expense relates to rebates 
and commissions payable which are recognised and 
calculated in line with underlying agreements.

Key estimates and assumptions
Trail commission expense
On initial recognition, the Group recognises a 
contract liability at fair value, which represents 
management’s estimate of the trail commission to be 
paid to authorised brokers on settled loans. The use 
of the expected value approach of estimating trail 
commission payable requires significant judgement 
as assumptions are made using a variety of inputs, 
including the expected loan run-off rate and the 
discount rate, that are determined by management 
(refer to note 16).

85

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)6 

Interest income

Interest income on cash and bank balances

Interest income on loans receivable – effective interest method

Interest income on loans receivable – held at FVTPL

Interest income on leases

Total interest income

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 6,891 

 138,042 

 102 

 16 

 1,808 

 56,508 

 270 

 47 

 145,051 

 58,633 

Accounting policy
Interest income is recognised using the effective 
interest method for debt instruments measured 
subsequently at amortised cost. Interest income 
is calculated by applying the effective interest rate 
to the gross carrying amount of a financial asset. 
The effective interest rate is the rate that discounts 
estimated future cash receipts or payments (including 
all fees and points paid or received that form an 
integral part of the effective interest rate, transaction 
costs and other premiums or discounts), excluding 
expected credit losses, through the expected life of 

the financial instrument or, when appropriate, a shorter 
period, to the net carrying amount of the financial asset 
or liability.

For financial assets that have subsequently become 
credit-impaired, interest income is recognised by 
applying the effective interest rate to the amortised 
cost of the financial asset. If, in subsequent reporting 
periods, the credit risk on the credit-impaired financial 
instrument improves so that the financial asset is no 
longer credit impaired, interest income is recognised 
by applying the effective interest rate to the gross 
carrying amount of the financial asset.

7 

Investment income

Dividends and distributions from investments

Realised gains from disposal of investments

Net gain/(loss) from financial instruments held at fair value

Total investment income

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 2,683 

 3,030 

 825 

 6,538 

 1,155 

 6,748 

 (1,030)

 6,873 

Accounting policy
Investment income includes gains and losses arising 
from subsequent changes in the fair value of equity 
and debt investment securities that are classified as 
fair value through profit or loss (FVTPL) and dividends 
or distributions on these securities which represent the 

return on such investments. Dividends or distributions 
are recognised when the right to receive a dividend or 
distribution is established, it is probable the economic 
benefits associated will flow to the Group and it can be 
measured reliably.

86

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)Employee expenses

8 
Salary, superannuation and bonuses

Termination benefits

Amortisation of share-based payments (refer to note 31)

Other employment expenses¹

Total employee expenses

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 139,410 

 3,043 

 10,474 

 13,247 

 166,174 

 132,913 

 1,506 

 15,722 

 16,906 

 167,047 

1.  Includes recruitment fees, payroll tax, life insurance, workers compensation, fringe benefits tax and leave entitlements.

Finance costs

9 
Interest on unsecured notes¹

Interest on mortgage trust warehouse notes¹

Fund preferred unit distribution¹

Interest on lease liabilities

Other finance costs

Total finance costs

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 11,990 

 27,563 

 67,995 

 4,354 

 1,146 

 7,766 

 6,456 

 22,803 

 3,513 

 156 

 113,048 

 40,694 

1. Refer to note 23 for more detail on the unsecured note program, fund preferred units and mortgage trust notes. 

10  Other expenses

Professional services

Insurance

Fund administration and operational costs

Charitable donations¹

Occupancy and office expenses

Other expenses

Total other expenses

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 7,556 

 3,301 

 3,234 

 371 

 2,956 

 9,579 

 10,214 

 2,704 

 2,912 

 453 

 1,925 

 7,354 

 26,997 

 25,562 

1.  The charitable donations paid by the Group in 2023 and 2022 were principally made to the MA Foundation, a registered charity, and were 

made in response to staff elections.

87

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)11 

Income tax

11.1 

Income tax expense

Current tax expense

Deferred tax (expense)/benefit

Income tax expense

 (8,302)

 (4,098)

 (12,400)

11.2  Reconciliation of income tax expense to prima facie tax payable

Profit before income tax

Prima facie income tax expense at the Australian corporate tax rate of 30%

Tax effect of amounts not assessable/deductible in calculating taxable income:

– Effect of income that is subject to/(exempt from) tax

– Non-deductible expenses

– Prior year over adjustment

– Foreign tax – controlled entities

– Franking credits

– Foreign income tax offset

Income tax expense

11.3 

Income tax recognised in other comprehensive income

Deferred tax expense

Fair value remeasurement of investments

Share of revaluations in associates

Income tax recognised in other comprehensive income

11.4  Current tax assets and liabilities

Income tax receivable/(payable)

11.5  Deferred tax balances

Offshore entities

Deferred tax asset

Tax consolidated group

Deferred tax asset

Deferred tax liability

Net deferred tax liability

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 (17,575)

 1,461 

 (16,114)

 60,969 

 (18,291)

 1,127 

 (670)

 2,211 

 (493)

 - 

 2 

 43,479 

 (13,044)

 484 

 (663)

 95 

 567 

 56 

 105 

 (12,400)

 (16,114)

 (793)

 2,556 

 1,763 

 7,192

 7,192

 1,583 

 (1,532)

 51 

 (3,849)

(3,849)

739

-

15,837

 (34,433)

 (18,596)

14,994

 (30,533)

 (15,539)

88

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)11 

Income tax (continued)

11.5  Deferred tax balances (continued)

Opening 
balance  
$’000

Opening 
 balance 
adjustments 
$’000

Recognised in 
profit or loss  
$’000

Recognised 
in other 
comprehensive 
income  
$’000

Acquisitions/
disposals  
$’000

Closing balance  
$’000

31 December 2023

Temporary  
differences

Property, plant  
and equipment 

Contract assets 
and liabilities 

Financial assets

Investments in 
associates and 
joint ventures 

 (1,215)

 - 

 2,606 

 (1,716)

Deferred revenue

 (18,429)

Provisions

Loss allowance

Expense accruals

 3,844 

 1,288 

 5,609 

Intangible assets

 (13,791)

Share-based  
payments

Other

Total

31 December 2022

Temporary  
differences

Property, plant  
and equipment 

Financial assets

Investments in 
associates and 
joint ventures 

Deferred revenue

Provisions

Loss allowance

Expense accruals

 5,533 

 732 

 (15,539)

 (556)

 (183)

 (2,673)

 (3,252)

 2,420 

 712 

 1,987 

 - 

 850 

 - 

 - 

 710 

 - 

 (189)

 - 

 - 

 - 

 (111)

 1,260 

 286 

 1,202 

 (948)

 37 

 413 

 (29)

 207 

Intangible assets

 (3,485)

 1,285 

Share-based  
payments

Other

Total

 2,883 

 867 

 (1,280)

 - 

 (359)

 2,094 

 414 

 792 

 (409)

 296 

 (3,595)

 (394)

 (668)

 (2,552)

 1,473 

 (638)

 (60)

 (5,341)

 (945)

 4 

 3,437 

 (7,559)

 547 

 305 

 828 

 1,716 

 2,650 

 151 

 1,134 

 - 

 - 

 (793)

 2,556 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 1,763 

 - 

 1,583 

 (1,532)

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 (7,655)

 464 

 300 

 2,587 

 (801)

 1,642 

 1,404 

 1,136 

 (21,314)

 3,450 

 431 

 3,057 

 (12,318)

 4,895 

 561 

 (17,857)

 (1,215)

 2,606 

 (1,716)

 (18,429)

 3,844 

 1,288 

 5,609 

 (13,307)

 (13,791)

 - 

 73 

 5,533 

 732 

 51 

 (17,538)

 (15,539)

89

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)11 

Income tax (continued)

Accounting policy

Tax consolidation
The Company, together with eligible Australian 
resident wholly owned subsidiaries, comprise a tax 
consolidated group (Tax Group) with the Company as 
the head entity. As a result, the Company is subject to 
income tax as the head entity of the Tax Group.

Tax effect accounting by members of the  
tax group
The consolidated current and deferred tax amounts 
for the Tax Group are allocated to the members of 
the Tax Group using the ‘separate taxpayer within 
group’ approach, with deferred taxes being allocated 
by reference to the carrying amounts in financial 
statements of each member entity and the tax values 
applying under tax consolidation. Current tax liabilities 
and assets and deferred tax assets arising from 
unused tax losses and relevant tax credits arising 
from this allocation process are then accounted for 
as immediately assumed by the head entity, as under 
Australian taxation law, the head entity has the legal 
obligation (or right) to those amounts.

Entities within the Tax Group have applied funding 
principles under which the Company and each of the 
members of the Tax Group agree to pay or receive tax 
equivalent amounts to or from the head entity based 
on the current tax liability or current tax asset of 
the member.

Current tax
The current tax payable is based on taxable profit for 
the year. Taxable profit differs from profit before tax 
as reported in the Statement of profit or loss and other 
comprehensive income because of items of income or 
expense that are taxable or deductible in other years 
and items that are never taxable or deductible. The 
Group’s liability for current tax is calculated using tax 
rates that have been enacted or substantively enacted 
by the end of the reporting period.

Deferred tax
Deferred tax is recognised on temporary differences 
between the carrying amounts of assets and liabilities 
in the consolidated financial statements and the 
corresponding tax bases used in the computation of 
taxable profit. Deferred tax liabilities are generally 
recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for all 
deductible temporary differences to the extent that it 
is probable that taxable profits will be available against 
which those deductible temporary differences can be 
utilised. Such deferred tax assets and liabilities are 
not recognised if the temporary difference arises from 
goodwill or from the initial recognition (other than in a 
business combination) of other assets and liabilities in 
a transaction that affects neither the taxable profit nor 
the accounting profit.

Deferred tax liabilities are recognised for taxable 
temporary differences associated with investments 
in subsidiaries and associates, and interests in joint 
ventures, except where the Group is able to control the 
reversal of the temporary difference and it is probable 
that the temporary difference will not reverse in the 
foreseeable future. Deferred tax assets arising from 
deductible temporary differences associated with such 
investments and interests are only recognised to the 
extent that it is probable that there will be sufficient 
taxable profits against which to utilise the benefits of 
the temporary differences and they are expected to 
reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed 
at the end of each reporting period and reduced to 
the extent that it is no longer probable that sufficient 
taxable profits will be available to allow all or part of the 
asset to be recovered.

Deferred tax assets and liabilities are measured at the 
tax rates that are expected to apply in the period in 
which the liability is settled or the asset realised, based 
on tax rates (and tax laws) that have been enacted 
or substantively enacted by the end of the reporting 
period. The measurement of deferred tax liabilities 
and assets reflects the tax consequences that would 
follow from the manner in which the Group expects, at 
the end of the reporting period, to recover or settle the 
carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when 
there is a legally enforceable right to set off current 
tax assets against current tax liabilities and when they 
relate to income taxes levied by the same taxation 
authority and the Group intends to settle its current tax 
assets and liabilities on a net basis.

90

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)11 

Income tax (continued)

Accounting policy (continued)

Current and deferred tax for the year
Current and deferred tax are recognised as an 
expense or income in the profit or loss, except when 
they relate to items that are recognised in other 
comprehensive income or directly in equity, in which 
case the current and deferred tax are also recognised 
in other comprehensive income or directly in equity, 
respectively. Where current tax or deferred tax arises 
from the initial accounting for a business combination, 
the tax effect is included in the accounting for 
business combination.

12  Cash and cash equivalents

Cash and bank balances

Restricted balances

Total cash and cash equivalents

Tax governance
The Board approved Tax Governance Policy for the 
Group outlines a tax control framework to provide 
guidance on how all tax risks are identified, managed 
and reported. The Tax Governance Policy is supported 
by tax related procedures and processes, which ensure 
the Group effectively manages its tax risk.

Key estimates and assumptions
Deferred tax assets are recognised for deductible 
temporary differences and unused tax losses only if it is 
probable that future taxable amounts will be available to 
utilise those temporary differences and losses.

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 43,108 

 137,211 

 180,319 

 98,803 

 45,786 

 144,589 

91

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)12  Cash and cash equivalents (continued)

12.1   Reconciliation of profit for the year to net cash flows from operating activities

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

Profit after income tax

Adjustments to profit after income tax:

Income tax expense recognised in profit or loss

Share-based payments

Non-cash interest and investment income

Share of profit of associates

Net foreign exchange gains

Net (gains)/losses from financial instruments held at fair value

Realised gains from disposal of investments

Gains on disposal of fixed assets

Interest expense on leases

Intangible amortisation

Amortisation of right-of-use assets

Depreciation of non-current assets

 31,079 

 44,855 

 12,400 

 10,474 

 (2,168)

 (2,086)

 (599)

 (825)

 (3,030)

 160 

 4,354 

 6,272 

 9,437 

 1,950 

 16,114 

 15,721 

 (1,155)

 (1,389)

 (1,396)

 384 

 (5,938)

 38 

 3,513 

 7,353 

 8,073 

 1,815 

Total adjustments to profit after income tax

 36,339 

 43,133 

Changes in assets and liabilities:

Change in trade and other receivables

Change in loans receivable

Change in other assets

Change in contract assets and contract liabilities

Change in borrowings

Change in trade and other payables

Change in provisions

Total changes in assets and liabilities

Cash generated from operations

Income taxes paid

Net cash inflows from operating activities

 331 

 (28,169)

 (1,155,050)

 (334,242)

 (473)

 (8,260)

 1,164,216 

 (20,448)

 (6,189)

 (25,873)

 41,545 

 (19,361)

 22,184 

 6,530 

 (11,456)

 498,768 

 14,544 

 (325)

 145,650 

 233,638 

 (21,249)

 212,389 

Accounting policy
Cash and cash equivalents includes cash on hand, 
deposits held at call with financial institutions, other 
short-term, highly liquid investments with original 
maturities of three months or less that are readily 
convertible to known amounts of cash and which are 
subject to an insignificant risk of changes in value. 

The carrying amount of cash and cash equivalents is 
materially equal to fair value due to the assets being 
highly liquid.

Restricted balances include cash and cash equivalents 
that are not readily available to meet the Group’s short-
term cash commitments.

92

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)Receivables

13 
Accounts receivable

Performance fees receivable

Management fees receivable

Transaction fees receivable

Commissions receivable

Interest receivable

Other receivables

Loss allowance on receivables (note 15)

Total receivables

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 11,100 

 27,498 

 10,030 

 8,011 

13,104

 9,050 

 8,254 

 (631)

 86,416 

 11,461 

 28,048 

 9,454 

 - 

 31,950 

 2,176 

 6,539 

 (1,145)

 88,483 

Accounting policy
Receivables are initially recognised when they are 
originated less any allowance for expected credit 
losses. To measure the expected credit losses, 
receivables are grouped based on days overdue. 

Key estimates and assumptions
The Group has elected to use the simplified approach 
and has determined the loss allowance based off the 
lifetime expected credit loss (ECL). The expected 
credit losses on these financial assets are estimated 
based on the Group’s historical credit loss experience, 

adjusted for factors that are specific to debtors, 
general economic conditions and an assessment of 
both the current as well as the forecast direction of 
conditions at the reporting date, including the time 
value of money where appropriate. Refer to note 15 for 
further information.

Receivables are written-off when there is no 
reasonable expectation of recovery. Indicators that 
there is no reasonable expectation of recovery include, 
amongst others, the failure of a debtor to engage in a 
repayment plan with the Group. Any recoveries made 
are recognised in profit or loss.

93

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)14 

Loans receivable

Current

Commercial loans1

Loss allowance (note 15)

Total loans receivable – current

Non-current

Commercial loans¹

Residential mortgages

Loans to employees

Loss allowance (note 15)

Total loans receivable – non-current

Total loans receivable

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 441,659 

 320,486 

 (590)

 441,069 

 808,117 

 833,567 

 2,383 

 (5,420)

 1,638,647 

 2,079,716 

 (684)

 319,802 

 296,451 

 241,046 

 2,211 

 (4,028)

 535,680 

 855,482 

1.  Commercial loans are provided to corporate entities and special purpose vehicles. The loans have terms of between four months and ten 

years and are either fully or partially secured against the assets of the borrowers.

14.1 

Loans receivable by industry

Consolidated

31 December 2023

Financial services

Professional services

Residential mortgages

Other

Total

31 December 2022

Financial services

Professional services

Residential mortgages

Other

Total

Loans receivable
$’000

Loss allowance
$’000

Total
$’000

 1,034,631 

 194,680 

 833,567 

 22,848 

 (3,838)

 (1,045)

 (999)

 (128)

 1,030,793 

 193,635 

 832,568 

 22,720 

 2,085,726 

 (6,010)

 2,079,716 

 454,652 

 149,275 

 241,046 

 15,221 

 860,194 

 (2,379)

 (1,162)

 (1,134)

 (37)

 (4,712)

 452,273 

 148,113 

 239,912 

 15,184 

 855,482 

Accounting policy
Loans receivable are initially recognised on settlement 
date, when cash is advanced to the borrower and are 
recognised net of any credit loss allowance. A credit 
loss allowance for expected credit losses on loans 
receivable is recognised upon inception of a loan.

Key estimates and assumptions
The Group applies the ECL impairment model. The 
calculation of ECL requires judgement and the choice 
of inputs, estimates and assumptions. Refer to note 15 
for further information.

94

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)15 

Loss allowance

For financial assets measured at amortised cost, the 
Group bears the risk that the future circumstances 
of customers might change, including their ability to 
fulfil their contractual cash flow obligations in part or 
in full. The Group periodically assesses exposures to 
determine whether the credit risk of a financial asset 
has increased significantly since initial recognition. 

At the reporting date, the Group undertook a review 
of its receivables, loans receivable and ECL. The 
review considered the macroeconomic outlook, 
counterparty credit quality, the type of collateral 

held and exposure at default as at the reporting date. 
During the year, the Group undertook a recalibration 
of the modelled collective ECL on its residential 
mortgages due to the higher proportion of prime loans 
in the Group’s residential mortgages portfolio. As a 
result, the modelled collective ECL was updated to 
reflect the higher credit quality of the loans receivable 
portfolio. The Group’s loss allowance provisions 
are a determination of probabilities of default and a 
determination of losses that may be incurred should a 
default occur.

The table below presents the gross exposure and related ECL allowance for financial assets subject to the 
impairment requirements of AASB 9 Financial instruments (AASB 9).

Consolidated

31 December 2023

Receivables

Loans receivable

Total

31 December 2022

Receivables

Loans receivable

Total

Gross exposure  
for asset  
$’000

Loss  
allowance
$’000

87,047

 2,085,726 

2,172,773

 89,628 

 860,194 

 949,822 

 (631)

 (6,010)

 (6,641)

 (1,145)

 (4,712)

 (5,857)

15. 1  Movement in credit loss allowance by asset category

Balance as at 1 January 2022

 (954)

 (458)

 (1,974)

Receivables 
$’000

Loans to  
associates 
$’000

Loans  
receivable 
$’000

Credit loss allowance recognised in the 
Statement of profit or loss

Additions through business combinations

Reclassifications and other movements

Balance as at 31 December 2022

Credit loss allowance recognised in the 
Statement of profit or loss

Reclassifications and other movements

Balance as at 31 December 2023

 (133)

 - 

 (58)

 (1,145)

 418 

 96 

 (631)

 91 

 - 

 367 

 - 

 - 

 - 

 - 

 (1,845)

 (1,000)

 107 

 (4,712)

 (1,269)

 (29)

 (6,010)

Total
$’000

86,416

 2,079,716 

 2,166,132 

 88,483 

 855,482 

 943,965 

Total
$’000

 (3,386)

 (1,887)

 (1,000)

 416 

 (5,857)

 (851)

 67 

 (6,641)

95

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)15 

Loss allowance (continued)

15.2  Movement in credit loss allowance by ECL stage

Balance as at 1 January 2022

Net credit impairment charges

Additions through business combinations

Balance as at 31 December 2022

Net credit impairment charges

Reclassifications and other movements

Balance as at 31 December 2023

Stage I 
$’000

 (3,386)

 (1,160)

 (700)

 (5,246)

 (726)

 72 

 (5,900)

Lifetime ECL

Stage II 
$’000

Stage III 
$’000

Total ECL 
$’000

 - 

 (30)

 (300)

 (330)

 (105)

 300 

 (135)

 - 

 (281)

 - 

 (281)

 (20)

 (305)

 (606)

 (3,386)

 (1,471)

 (1,000)

 (5,857)

 (851)

 67 

 (6,641)

Accounting policy
The Group applies the ECL model under AASB 
9 for the following financial assets measured at 
amortised cost:

•  Trade and other receivables;

•  Loans receivable;

•  Loan commitments; and

•  Contract assets.

The carrying amount of the financial asset is reduced 
by the impairment loss directly for all financial assets.

Measurement of ECL
The Group collectively assesses and segments its 
financial assets by the class of financial asset, type of 
exposure and groups the assets based on shared risk 
characteristics. 

The Group applies the following approach for 
measuring loss allowances:

•  Modelled collective ECL;

•  Post-model overlay adjustments; and

•  Specific provisions.

The ECL model is a probability-weighted estimate 
of credit losses. Credit losses are measured as the 
present value of all cash shortfalls (i.e. the difference 
between cash flows due to the Group in accordance 
with the contract and cash flows that the Group 
expects to receive).

The ECL model incorporates a range of components. 
The key model inputs used by the Group in measuring 
the ECL includes:

•  Probability of Default (PD): represents the 

possibility of a default over the next 12 months;

•  Loss Given Default (LGD): expected loss if a default 
occurs, taking into consideration the mitigating 
effect of collateral assets and time value of money;

•  Exposure at Default (EAD): represents the 

estimated exposure in the event of a default; and

•  Post-model overlay adjustments: The Group 

applies an economic overlay to the modelled ECL to 
ensure the loss provision is sufficiently responding 
to changes in credit risk that would not be captured 
in the above assumptions.

Forward-looking information (FLI) is used by the 
Group which includes economic indicators such as 
economic forecast and outlook, GDP growth, inflation, 
unemployment rates and interest rates.

The Group measures the loss allowance for a financial 
asset at an amount equal to the lifetime ECL if the 
credit risk on that financial asset has had a significant 
increase in credit risk (SICR) since initial recognition. 
If the credit risk on a financial asset has not increased 
significantly since initial recognition, the Group 
measures the loss allowance for that financial asset at 
an amount equal to a 12-month ECL.

The Group applies the three-stage model based on 
the change in credit risk since initial recognition to 
determine the loss allowance of its financial assets.

96

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)15 

Loss allowance (continued)

Accounting policy (continued)

Stage

Required provision

Provision approach

Stage 1: 
12-month ECL

Performing financial assets less 
than 30 days past due. Financial 
assets which are determined to 
have a low credit risk at  
reporting date. 

Losses that arise from a default 
event in the next 12 months.

Modelled collective provision 
based on the PD, LGD and FLI with 
post-model overlay adjustments.

Stage 2: 
Lifetime ECL

The Group determines that there 
has been a SICR in the asset since 
initial recognition but it is not 
considered to be credit impaired.

Loss provision equal to the 
expected loss over the remaining 
lifetime of the financial asset.

Modelled collective provision 
based on the PD, LGD and 
FLI with post-model overlay 
adjustments. 

Stage 3: 
Lifetime 
ECL – credit 
impaired

The Group determines a financial 
asset is credit impaired when one or 
more events that have a detrimental 
impact on the estimated future cash 
flows of the financial asset have 
occurred. 

Lifetime ECL collective provision 
or individually assessed (specific) 
provision. 

Modelled collective provision, 
specific provisions with post-
model overlay adjustments. 

The Group has provided for loan commitments that are 
both drawn and undrawn. In assessing whether there 
has been a SICR, the Group considers the changes 
in risk of a default occurring on the loan to which the 
commitment relates. The undrawn commitment is 
contingent on the counterparty achieving contractual 
milestones. Once they are achieved, the amount can 
be drawn upon and expected to be met within 12 
months. The Group applies a loss allowance on entire 
commitments based on the 12-month ECL.

For contract assets, the trail commission receivable 
is mainly from financial institutions with high credit 
ratings. Even when forward-looking assumptions are 
considered the ECL would not be material.

The Group applies the simplified approach for 
trade receivables which uses a lifetime ECL. Trade 
receivables are grouped based on the shared credit 
risk characteristics and the days past due. The ECL 
is calculated based on actual credit loss relating to 
revenue from experience over the past three years 
adjusted for the Group’s forward looking expectations 
based off economic indicators. The Group performed 
the calculation of ECL rates separately for receivables 
arising from the advisory business and other asset 
management fees as such fees have historically been 
received in full.

Definition of default
The Group considers the following as constituting an 
event of default for internal credit risk management 
purposes as historical experience indicates that 
receivables that meet either of the following criteria are 
generally not recoverable.

•  When repayments are at least 90 days past due; or

•  When there is a breach of financial covenants by the 

counterparty; or

• 

Information developed internally or obtained from 
external sources indicates that the debtor is unlikely 
to pay its creditors, including the Group, in full 
(without taking into account any collaterals held by 
the Group).

Write-off policy 
The Group writes-off a financial asset when there 
is information indicating that the counterparty is in 
severe financial difficulty and there is no realistic 
prospect of recovery. Any recoveries made are 
recognised in profit or loss. Indicators that there is no 
reasonable expectation of recovery include, amongst 
others, the failure of a debtor to engage in a repayment 
plan with the Group.

97

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)15 

Loss allowance (continued)

Key estimates and assumptions
Significant increase in credit risk (SICR): The Group 
considers quantitative and qualitative factors, 
based on historical experience and informed credit 
assessments when assessing exposures to determine 
whether there has been a SICR. The Group considers 
reasonable and supportable information that is 
relevant and available without undue cost or effort. 

In addition to the above, the Group considers a SICR 
based on the number of days past due. A non-trade 
receivable loan is assessed to have a SICR when the 
number of days past due is over 90 days.

In particular, the following information is taken in 
account when assessing whether credit risk has 
increased significantly since initial recognition:

•  existing or forecast adverse changes in business, 

financial or economic conditions that are expected 
to cause a significant decrease in the debtor’s 
ability to meet its debt obligations;

•  an actual or expected significant deterioration in the 

operating results of the debtor; and

•  an actual or expected significant adverse change in 
regulatory, economic, or technological environment 
of the debtor that results in a significant decrease in 
the debtor’s ability to meet its debt obligations.

A financial asset is determined to have low risk if it 
has a low risk of default, the customer has a strong 
capacity to meet its contractual cash flow obligations 
in the short-term, and adverse changes in long-term 
economic and business conditions will not necessarily 
reduce the ability of the customer to fulfil its 
contractual cash flow obligations.

The Group regularly monitors the effectiveness of 
the criteria used to identify whether there has been a 
SICR and revises them as appropriate to ensure that 
the criteria are capable of identifying SICR before the 
amount becomes past due.

Probability of Default (PD): An estimate of the 
likelihood of default over a given time. These are 
estimated considering the contractual maturities and 
is based on current conditions, adjusted to consider 
estimates of future conditions that will impact PD.

Loss Given Default (LGD): An estimate of the loss 
arising on default. It is based on the difference 
between contractual cash flows due and those that 
the Group expects to receive, considering cash flow 
capacity of the customer.

Forward-looking information (FLI): The Group 
considers economic indicators such as economic 
forecast and outlook, GDP growth, inflation, 
unemployment rates and interest rates.

Post-model overlay adjustments: Management applies 
an economic overlay to ensure the Group has sufficient 
coverage for potential credit risk factors that are not 
captured in the assumptions above.

98

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)16  Contract assets and liabilities

Contract assets

Trail commission receivable – current

Trail commission receivable – non-current

Total contract assets

Contract liabilities

Trail commission payable – current

Trail commission payable – non-current

Total contract liabilities

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 162,237 

 543,048 

 705,285 

 152,051 

 509,107 

 661,158 

 139,280 

 467,952 

 607,232 

 131,061 

 440,304 

 571,365 

Accounting policy
Through its mortgage aggregation platform, Finsure, 
the Group receives trail commissions from lenders 
on loans that have settled and were originated by 
authorised brokers. The Group also makes trail 
commission payments to authorised brokers.

The Group’s trail commission receivable is recognised 
at fair value on initial recognition, being the expected 
future trail commission receivables discounted to 
their net present value in line with the expected value 
method under AASB 15. In addition, an associated 
payable and expense to the relevant brokers is also 
recognised, initially measured at fair value being the 
future trail commission payable to relevant brokers 
discounted to their net present value. 

Subsequent to initial recognition and measurement 
both the trail commission asset and trail commission 
payable are measured at amortised cost. The carrying 

amount of the trail commission asset and trail 
commission payable are reassessed at each reporting 
period, to reflect actual and revised estimated cash 
flows, by recalculating the carrying amount with 
reference to the present value of estimated future 
cash flows at the original effective interest rate. Any 
resulting adjustment is recognised in profit or loss.

Key estimates and assumptions
Management uses a variety of inputs including external 
actuarial analysis of historical information to determine 
trail commission receivables and its associated 
payable and expense. Key assumptions underlying the 
calculation include the expected loan run-off rate and 
the discount rate.

The key assumptions underlying the fair value 
calculations of trail commission receivable and the 
corresponding payable to authorised brokers at the 
reporting date are summarised in the following table:

Discount rate

Run-off rates¹

31 Dec 2023
Consolidated

31 Dec 2022
Consolidated

4.75%

4.75%

Between 12.0%  
and 33.0%

Between 12.0%  
and 33.0%

1.  The run-off rates refer to the expected loan book attrition rates. Run-off rates are then stratified into time-bands, by managed loan 

portfolio, and applied to each loan according to the age of that particular loan.

99

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)17  Other financial assets and liabilities

Financial assets – current

Financial assets held at FVTPL (equity securities)

Financial assets held at FVTOCI (equity securities)

Consolidated managed fund investments1

Total financial assets – current

Financial assets – non-current

Financial assets held at FVTPL (non-equity securities)

Financial assets held at FVTOCI (equity securities)

Total financial assets – non-current

Total financial assets

Financial liabilities – current

Consolidated managed fund investments1

Total financial liabilities – current

Total financial liabilities

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 619 

 1,600 

 159,015 

 161,234 

 7,588 

 18,117 

 25,705 

 186,939 

 102,415 

 102,415 

 102,415 

 640 

 11,600 

 154,860 

 167,100 

 15,479 

 13,733 

 29,212 

 196,312 

 116,419 

 116,419 

 116,419 

1.  Net consolidated managed fund investments at 31 December 2023 at $56.6 million (2022: $38.4 million) represents financial assets and 

liabilities of funds managed by the Group, that are deemed to be controlled by the Group at the reporting date as a result of a strategic co-
investment held by the Group in the fund. Refer to further information in note 34.

Accounting policy

Recognition and initial measurement
Financial assets and financial liabilities are recognised 
when the Group becomes a party to the contractual 
provisions of the instrument and are initially measured 
at fair value. Transactions costs that are directly 
attributable to the acquisition or issue of financial 
assets and financial liabilities (other than financial 
assets and financial liabilities at fair value through 
profit or loss (FVTPL)) are added to or deducted 
from the fair value of the financial assets or financial 
liabilities, as appropriate, on initial recognition. 
Transaction costs directly attributable to the 
acquisition of financial assets or financial liabilities at 
FVTPL are recognised in profit or loss.

Classification and subsequent measurement
The Group’s financial assets are classified based on 
the business model within which the asset is held and 
on the basis of the financial asset’s contractual cash 
flow characteristics.

In determining the business model, all relevant 
evidence that is available at the date of the assessment 
is used, including:

•  how the performance of the business model and 
financial assets held is evaluated and reported 
to management;

• 

the risks that affect the performance and the way in 
which those risks are managed; and

•  how the managers of the business are 

compensated; such as whether it is based on the 
fair value of the assets managed or on contractual 
cash flows collected.

A financial asset is measured at amortised cost if it 
meets all of the following conditions:

•  The financial asset is held within a business model 
whose objective is to hold financial assets in order 
to collect contractual cash flows;

•  The contractual terms of the financial asset give 

rise on specified dates to cash flows that are solely 
payments of principal and interest on principal 
amount outstanding; and

•  The financial asset has not been designated 

at FVTPL.

100

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)17  Other financial assets and liabilities (continued)

Accounting policy (continued)

The amortised cost of a financial asset is measured as:

• 

the amount at which the financial asset is measured 
at initial recognition;

•  minus the principal repayments;

•  plus the cumulative amortisation using the effective 
interest method of any difference between that 
initial amount and the maturity amount; and

•  adjusted for any loss allowance.

Refer to note 6 for further information on the effective 
interest method.

A financial asset is measured at fair value through 
other comprehensive income (FVTOCI) if it meets all of 
the following conditions: 

•  The financial asset is held within a business 
model whose objective is achieved by both 
collecting contractual cash flows and selling the 
financial assets;

•  The contractual terms of the financial asset give 

rise on specified dates to cash flows that are solely 
payments of principal and interest on the principal 
amount outstanding; and

•  The financial asset has not been designated 

at FVTPL.

However, the Group may make the following irrevocable 
election at initial recognition of a financial asset:

•  The Group may irrevocably elect to present 

subsequent changes in fair value of an equity 
investment in other comprehensive income if 
certain criteria are met such as, if the equity 
instrument is not held for trading; and

•  The Group may irrevocably designate a debt 

investment that meets the amortised cost or FVTOCI 
criteria as measured at FVTPL if doing so eliminates 
or significantly reduces an accounting mismatch.

A financial asset is held for trading if:

• 

It has been acquired principally for the purpose of 
selling it in the near term; or

•  On initial recognition it is part of a portfolio of 
identified financial instruments that the Group 
manages together and has evidence of a recent 
actual pattern of short-term profit-taking; or

• 

It is a derivative.

Financial assets designated at FVTOCI are initially 
measured at fair value plus transaction costs. Gains 
and losses relating to these financial assets will be 
recognise in other comprehensive income. Dividends 
from such investments are recognised as investment 
income in profit or loss when the Group has the right 
to receive payments, unless the dividend clearly 
represents a recovery of part of the cost of the 
investment. The accumulated fair value reserve related 
to these investments will never be reclassified to profit 
or loss.

Financial assets that do not meet the criteria for being 
measured at amortised cost or FVTOCI are measured 
at FVTPL. Specifically: 

• 

Investments in equity instruments are classified 
at FVTPL, unless the Group designates an equity 
investment that is neither held for trading nor a 
contingent consideration arising from a business 
combination at FVTOCI on initial recognition; and

•  Debt instruments that do not meet the amortised 
cost criteria or the FVTOCI criteria are classified 
at FVTPL. In addition, debt instruments that 
meet either the amortised cost criteria or the 
FVTOCI criteria may be designated at FVTPL 
upon initial recognition if such designation if 
doing so eliminates or significantly reduces an 
accounting mismatch.

Financial assets measured at FVTPL are classified 
under a three-level fair value hierarchy that reflects 
the significance of the inputs used in making the 
measurements. Any fair value gains or losses including 
any interest or dividend income earned on the financial 
asset, are recognised as investment income in profit 
or loss. Classifications are reviewed at each reporting 
date and transfers between levels are determined 
based on a reassessment of the lowest level input that 
is significant to the fair value measurement.

Refer to note 26 for further information regarding the 
fair value of financial assets and financial liabilities.

101

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)17  Other financial assets and liabilities (continued)

Accounting policy (continued)

Financial liabilities and equity instruments
Debt or equity instruments issued by a Group entity 
are classified as either financial liabilities or as equity 
in accordance with the substance of the contractual 
arrangements and the definitions of a financial liability 
and an equity instrument.

An equity instrument is any contract that evidences 
a residual interest in the assets of an entity after 
deducting all of its liabilities. Equity instruments issued 
by a Group entity is measured as proceeds received 
less direct issue costs.

Repurchase of the Company’s own equity instruments 
is recognised and deducted directly in equity. No gain 
or loss is recognised in profit or loss on the purchase, 
sale, issue or cancellation of the Company’s own 
equity instruments.

Financial liabilities that are not designated at FVTPL, 
are subsequently measured at amortised cost using 
the effective interest method. 

Borrowings are initially recognised at fair value of 
the consideration received less directly attributable 
transaction costs and subsequently measured at 
amortised cost using the effective interest method. 
Trade and other payables are carried at amortised 
cost and represent liabilities for goods and services 
provided to the Group that are unpaid. 

Key estimates and assumptions
The Group uses judgement in determining the business 
model at the level that reflects how groups of financial 
assets are managed together to achieve a particular 
business objective.

18 

Property, plant and equipment

The below table sets out the carrying value of the Group’s property, plant and equipment:

Office equipment – at cost

Less accumulated depreciation

Total office equipment

Furniture and fixtures – at cost

Less accumulated depreciation

Total furniture and fixtures

Lease improvements – at cost

Less accumulated depreciation

Total leasehold improvements

Total property, plant and equipment

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 5,160 

 (3,535)

 1,625 

 1,516 

 (286)

 1,230 

 2,185 

 (777)

 1,408 

 4,263 

 5,269 

 (2,419)

 2,850 

 1,840 

 (468)

 1,372 

 3,673 

 (1,922)

 1,751 

 5,973 

102

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)18 

Property, plant and equipment (continued)

18.1  Movement in carrying value of property, plant and equipment

The below table sets out the movement in carrying value of the Group’s property, plant and equipment:

Consolidated

Assets for own use

Balance as at 1 January 2022

Additions

Additions through business combinations 

Disposals

Depreciation expense

Balance as at 31 December 2022

Additions

Disposals

Depreciation expense

Foreign currency movement

Balance as at 31 December 2023

Office  
equipment  
$’000

Furniture and  
fixtures 
$’000

Leasehold  
improvements
$’000

 1,085 

 3,117 

 2 

 (5)

 (1,349)

 2,850 

 258 

 (34)

 (1,449)

 - 

 1,625 

 808 

 575 

 124 

 (33)

 (102)

 1,372 

 35 

 (99)

 (78)

 - 

 1,230 

 142 

 1,973 

 - 

 - 

 (364)

 1,751 

 90 

 (30)

 (423)

 20 

 1,408 

Total
$’000

 2,035 

 5,665 

 126 

 (38)

 (1,815)

 5,973 

 383 

 (163)

 (1,950)

 20 

 4,263 

The gain or loss arising on the disposal or retirement of 
an item of property, plant and equipment is determined 
as the difference between the sales proceeds and the 
carrying amount of the asset and is recognised in profit 
or loss.

The carrying values of property, plant and equipment 
are reviewed for impairment when events or changes in 
circumstances indicate the carrying value may not be 
recoverable. Impairment losses are recognised in profit 
or loss.

Accounting policy
Property, plant and equipment are stated at historical 
cost (which includes, where applicable, costs directly 
attributable to the acquisition of the asset) less 
accumulated depreciation and, where applicable, 
accumulated impairment losses.

Depreciation is calculated on a straight-line basis 
to realise the net cost of each class of assets over 
its expected useful life. The estimated useful lives, 
residual values and depreciation method are reviewed 
at the end of each reporting period, with the effect 
of any changes in estimate accounted for on a 
prospective basis. The useful lives are as follows:

•  office equipment: 3 years

• 

• 

furniture and fittings: 7 years

leasehold improvements are amortised over the 
term of the lease

103

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)19  Right-of-use assets and lease liabilities

19.1  Right-of-use assets

Right-of-use assets – at cost

Less accumulated amortisation

Total right-of-use assets

Balance at the beginning of the year

Additions

Additions through business combinations (note 34) 

Lease modification

Amortisation expense

Foreign currency movement

Balance at the end of the year

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 81,854 

 (15,871)

 65,983 

 61,773 

 12,995 

 43 

 614 

 (9,437)

 (5)

 65,983 

 71,038 

 (9,265)

 61,773 

 9,874 

 60,210 

 990 

 (1,281)

 (8,073)

 53 

 61,773 

During the year, a commercial lease commenced for additional office premises in Sydney. The lease term is 10 years 
with renewal terms included in the contract. Renewal is at the specific option of the Group.

19.2  Lease liabilities

Current

Lease liabilities

Total lease liabilities – current

Non-current

Lease liabilities

Total lease liabilities – non-current

Total lease liabilities

19.2 (a) Movement in lease liabilities

Opening balance at the beginning of the year

Interest on lease liabilities

Payment of lease liabilities

Additions through business combinations (note 34)

Lease modification

Additions1

Foreign currency movement

Closing balance at the end of the year

1.  Additional office premises in Sydney.

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 6,141 

 6,141 

 65,369 

 65,369 

 71,510 

 64,952 

 4,354 

 (11,444)

 43 

 614 

 12,995 

 (4)

 71,510 

 6,219 

 6,219 

 58,733 

 58,733 

 64,952 

 10,285 

 3,513 

 (8,953)

 1,633 

 (1,578)

 59,994 

 58 

 64,952 

104

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)19  Right-of-use assets and lease liabilities (continued)

19.2  Lease liabilities (continued)

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

19.2 (b) Lease liabilities maturity analysis – contractual undiscounted cashflows

Less than one year

One to five years

More than five years

Total undiscounted lease liabilities at the end of the year

Accounting policy
Right-of-use assets
The Group recognises a right-of-use asset and a 
corresponding lease liability at the commencement 
date in the Statement of financial position, except for 
short-term leases and leases of low value assets.

Right-of-use assets are measured at cost and 
comprise of the amount that corresponds to the 
amount recognised for the lease liability on initial 
recognition together with any lease payments made 
at or before the commencement date (less any 
lease incentives received), initial direct costs and 
restoration-related costs. The right-of-use asset is 
amortised over the shorter of the asset’s useful life and 
the lease term on a straight-line basis. Amortisation 
of right-of-use assets starts at the commencement 
date of the lease and is recognised in the Statement of 
profit or loss and other comprehensive income.

Lease liabilities
The lease liability is initially measured at the present 
value of the lease payments that are not paid at the 
commencement date, discounted using the interest 
rate implicit in the lease or, if that rate cannot be readily 
determined, the Group’s incremental borrowing rate. 
Lease payments included in the measurement of the 
lease liability comprise:

•  Fixed lease payments (including in-substance fixed 
payments), less any lease incentives receivable; 

•  Variable lease payments that depend on an index or 
rate, initially measured using the index or rate at the 
commencement date.

The lease liability is subsequently increased by the 
interest cost on the lease liability and decreased by 
lease payment made. It is remeasured when there 
is a change in future lease payments arising from a 

 10,344 

 57,179 

 23,236 

 90,759 

 10,266 

 46,563 

 27,384 

 84,213 

change in an index or rate, a change in the estimate of 
the amount expected to be payable under a residual 
value guarantee, or as appropriate, changes in the 
assessment of whether a purchase or extension option 
is reasonably certain to be exercised or a termination 
option is reasonably certain not to be exercised. 

Lease payments are recognised as amortisation 
expense of the right-of-use asset over the term of 
the lease unless another systematic basis is more 
representative of the time pattern in which economic 
benefits from the leased asset are consumed.

The Group remeasures the lease liability (and makes a 
corresponding adjustment to the related right-of-use 
asset) whenever: 

•  The lease term has changed or there is a significant 

event or change in circumstances resulting in 
a change in the assessment of exercise of a 
purchase option, in which case the lease liability 
is remeasured by discounting the revised lease 
payments using a revised discount rate.

•  The lease payments change due to changes in 

an index or rate or a change in expected payment 
under a guaranteed residual value, in which cases 
the lease liability is remeasured by discounting 
the revised lease payments using an unchanged 
discount rate (unless the lease payments change is 
due to a change in a floating interest rate, in which 
case a revised discount rate is used). 

•  A lease contract is modified and the lease 

modification is not accounted for as a separate 
lease, in which case the lease liability is remeasured 
based on the lease term of the modified lease by 
discounting the revised lease payments using 
a revised discount rate at the effective date of 
the modification.

105

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)19  Right-of-use assets and lease liabilities (continued)

Key estimates and assumptions
Generally, the Group uses its incremental borrowing rate as the discount rate. Interest on lease liabilities is 
recognised in profit or loss.

The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee 
that include renewal options. The assessment of whether the Group is reasonably certain to exercise such 
options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use 
assets recognised.

20 

Investments in associates and joint ventures

20.1  Details of ownership interest

Material 
associates

BE ES I LLC1

BE OLD I LLC1

Principal place 
of business

Principal 
activity

United States  
of America

Specialty  
finance

United States  
of America

Specialty  
finance

Redcape Hotel 
Group 

Australia

Owner and 
operator of 
hotels 

Other associates²

Proportion of ownership interest 
and voting power held by the Group

2023 
%

-

-

2022 
%

49.6%

49.9%

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 - 

 - 

 22,415 

 8,274 

 57,086 

 3,811 

 91,586 

11.7%

10.8%

 49,296 

 1,475 

 50,771 

1.  During the year, the Group obtained control of BE ES I LLC and BE OLD I LLC as a result of its acquisition of Blue Elephant (refer to note 

34). The Group subsequently derecognised its investments in BE ES I LLC and BE OLD I LLC as associates. 

2.  Other associates represents the aggregate of the Group’s remaining associates, that are not considered individually material to the Group, 

and therefore have not been separately disclosed. 

106

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)20 

Investments in associates and joint ventures (continued)

20.2  Reconciliation of movements in carrying values of investments in associates

$’000

BE ES I LLC

BE OLD I LLC

MA Kincare 
Fund

Redcape 
Hotel Group

Other 
associates

 (2,205)

 (103)

 (135)

 (5,413)

 (127)

 (7,983)

Opening balance as at 
1 January 2022 

Acquisition

Disposal and  
capital returns

Share of profit/(loss)

Share of other  
comprehensive income

Less dividends/ 
distributions received

Foreign currency  
translation reserve

Closing balance as at 
31 December 2022

Acquisition

Disposal 
and capital returns

 19,400 

 1,609 

 - 

 2,422 

 - 

 2,068 

 5,659 

 - 

 310 

 - 

 1,189 

 340 

 22,415 

 4,763 

 8,274 

 - 

 (27,314)

 (8,239)

Share of profit/(loss)

 1,601 

 673 

Share of other 
comprehensive 
income/(loss) 

Less dividends/
distributions received 

Foreign currency 
translation reserve 

Closing balance as at 
31 December 2023

 - 

 - 

 (2,127)

 (888)

 662 

 180 

 - 

 - 

 7,595 

 620 

 84,339 

 - 

 (8,827)

 (23,313)

 747 

 (731)

 6,991 

 2,859 

 (4,680)

 (1,359)

Total

 120,393 

 10,747 

 (36,820)

 1,389 

 - 

 2,204 

 - 

 2,204 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 127 

 1,656 

 57,086 

 6,432 

 (1,188)

 (13)

 (8,856)

 (4,165)

 3,811 

 410 

 (2,771)

 (175)

 - 

 74 

 91,586 

 11,605 

 (39,512)

 2,086 

 (8,856)

 (7,106)

 - 

 126 

 968 

 49,296 

 1,475 

 50,771 

The Group also has interests in a number of individually immaterial associates. The unrecognised share of losses 
for investments in associates that have a nil carrying value for the year ended 31 December 2023 is $6.4 million 
(2022: $2.2 million).

107

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)20 

Investments in associates and joint ventures (continued)

20.3  Summarised financial information for the Group’s material associates

$’000

31 December 2023

Assets and liabilities

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets/(liabilities)

The above net assets include the following:

Cash and cash equivalents 

Revenue, expenses and results 

Revenue

Profit/(loss) for the year 

Other comprehensive (loss)/income for the year

Total comprehensive loss for the year

31 December 2022

Assets and liabilities

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets/(liabilities)

The above net assets include the following:

Cash and cash equivalents

Revenue, expenses and results

Revenue

Profit/(loss) for the year 

Other comprehensive income for the year

Total comprehensive income/(loss) for the year

BE ES I LLC

BE OLD I LLC

Redcape 
Hotel Group

Other 
associates

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 168,200 

 109,034 

 1,018,159 

 518,000 

 (191,304)

 (690,860)

 (573,740)

 - 

 421,315 

 (63,826)

 38,660 

 104,320 

 203,847 

 274,669 

 23,830 

 (49,293)

 (86,459)

 (62,629)

 13,112 

 (36,181)

 3,511 

 39,392 

 (2,487)

 4,986 

 33,354 

 38,809 

 1,276,318 

 174,341 

 841,126 

 (670)

 (96,199)

 (1,081,426)

 (420)

 (26,978)

 (685,383)

 (97)

 39,996 

 16,147 

 528,090 

 (66,056)

 2,678 

 1,534 

 19,246 

 176,482 

 5,302 

 5,030 

 - 

 5,030 

 4,094 

 210,219 

 700 

 - 

 700 

 (4,748)

 31,509 

 26,761 

 5,122 

 (3,181)

 - 

 (3,181)

108

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)20 

Investments in associates and joint ventures (continued)

20.3  Summarised financial information for the Group’s material associates (continued)

The following information outlines the level of control 
the Group has over its material associates and the 
resultant accounting treatment.

The results and assets and liabilities of associates 
or joint ventures are incorporated in these financial 
statements using the equity method of accounting.

Associates’ financial reports are used to apply the 
equity method. The Statement of profit or loss and 
other comprehensive income reflects the economic 
share of the results of operations of associates.

Where there has been a change recognised directly in 
the associates equity, the Group recognises its share 
of any changes in the Statement of changes in equity.

Key estimates and assumptions
An assessment is performed at each Statement of 
financial position date to determine whether there 
is any indication of impairment and whether it is 
necessary to recognise any impairment loss against 
the carrying value of the net investment in associates.

The Group determines the dates of obtaining or 
losing significant influence of another entity based 
on all pertinent facts and circumstances that affect 
the ability to significantly influence the financial and 
operating policies of that entity. 

Details of investment in Redcape  
Hotel Group
At 31 December 2023, the Group has a 11.7% direct 
equity investment in Redcape Hotel Group (Redcape) 
and funds managed by the Group own a further 29.2% 
of Redcape. During the year, the Group sold 1.0 million 
units for $1.7 million and purchased 3.9 million units 
for $6.4 million in Redcape. The Group earns trustee, 
asset manager, performance and hotel operator 
fees from Redcape, as well as investment returns 
on its direct investment. The Group is considered to 
have significant influence over Redcape as a result 
of participating in the financial and operating policy 
decisions of Redcape through its role as responsible 
entity, asset manager and hotel operator.

Redcape owns or operates 31 hotels in New South 
Wales and Queensland. During the year, the Group 
completed the divestment of four hotels for total 
consideration of $63.9m and has exchanged contracts 
for the divestment of four hotels and the acquisition 
of one hotel to be settled in the 2024 financial year. 
Redcape assessed their assets for impairment at 
31 December 2023. The Directors are satisfied that 
the impairment testing performed by Redcape is 
reasonable, and that no additional impairment is 
required for the Group’s investment in Redcape. 
Redcape has recognised a decrease in its net assets at 
31 December 2023, of which the Group’s share of the 
decrease has been equity accounted.

Accounting policy
Associates are entities over which the Group has 
significant influence of the entities’ financial and 
operating policies but not control. Investment in 
associates are accounted for under the equity method 
whereby investments are carried at cost adjusted for 
post-acquisition changes in the Group’s economic 
share of the net assets of the entity.

A joint venture is a joint arrangement whereby the 
parties that have joint control of the arrangement have 
rights to the net assets of the joint arrangement. Joint 
control is the contractually agreed sharing of control 
of an arrangement which exists only when decisions 
about the relevant activities require unanimous 
consent of the parties sharing control.

109

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)21 

Intangible assets

Intangible assets

Customer 
relationships, 
brand names 
and trademarks
$’000

Management  
rights and  
agreements 
$’000

Goodwill 
$’000

Software 
$’000

Total 
$’000

31 December 2023

Cost

Balance at 1 January 2023

 128,169 

 44,000 

 22,939 

 10,499 

 205,607 

Additions through business combinations 
(note 34)

Additions

Foreign currency movement

 13,877 

 - 

 (398)

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 13,877 

 3,715 

 - 

 3,715 

 (398)

Balance at 31 December 2023

 141,648 

 44,000 

 22,939 

 14,214 

 222,801 

Amortisation and impairment losses

Balance at 1 January 2023

Amortisation expense for the year

Balance at 31 December 2023

 - 

 - 

 - 

 (3,405)

 (14,034)

 (1,770)

 (5,175)

 (3,479)

 (17,513)

 (3,150)

 (1,023)

 (4,173)

 (20,589)

 (6,272)

 (26,861)

Carrying amount at 31 December 2023

 141,648 

 38,825 

 5,426 

 10,041 

 195,940 

31 December 2022

Cost

Balance at 1 January 2022

Additions through business combinations

Additions

 14,010 

 114,159 

 - 

 - 

 22,939 

 4,182 

 41,131 

 44,000 

 - 

 - 

 - 

 2,300 

 160,459 

 4,017 

 4,017 

Balance at 31 December 2022

 128,169 

 44,000 

 22,939 

 10,499 

 205,607 

Amortisation and impairment losses

Balance at 1 January 2022

Amortisation expense for year

Balance at 31 December 2022

 - 

 - 

 - 

Carrying amount at 31 December 2022

 128,169 

 - 

 (3,405)

 (3,405)

 40,595 

 (11,318)

 (2,716)

 (14,034)

 (1,918)

 (1,232)

 (3,150)

 (13,236)

 (7,353)

 (20,589)

 8,905 

 7,349 

 185,018 

During the year, the Group acquired Blue Elephant and recognised $13.9 million of goodwill. Refer to note 34 for 
further details of the acquisitions.

Included in the deferred tax liability of the Group as at 31 December 2023 is an amount of $12.3 million (31 Dec 
2022: $13.8 million) relating to the intangible assets recognised from the acquisition of subsidiaries.

110

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)21 

Intangible assets (continued)

Accounting policy

Goodwill
Goodwill arising on acquisition of a business is carried 
at cost as established at the date of acquisition of the 
business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill 
is allocated to each of the Company’s cash-
generating units (or groups of cash-generating units) 
that is expected to benefit from the synergies of 
the combination.

A cash-generating unit (CGU) to which goodwill has 
been allocated is tested for impairment annually, or 
more frequently where there is indication that the unit 
may be impaired. If the recoverable amount of the CGU 
is less than its carrying amount, the impairment loss 
is allocated first to reduce the carrying amount of any 
goodwill allocated to the unit and then to the other 
assets of the unit, pro-rated based on the carrying 
amount of each asset in the unit. Any impairment 
loss recognised for goodwill is not reversed in 
subsequent periods.

On disposal of the relevant CGU, the attributable 
amount of goodwill is included in the determination of 
the profit or loss on disposal.

Intangible assets 
Intangible assets acquired in a business combination 
and recognised separately from goodwill are initially 
recognised at their fair value at the acquisition date 
(which is regarded as their cost).

Subsequent to their initial recognition, intangible 
assets acquired in a business combination are 
reported at cost less accumulated amortisation and 
accumulated impairment losses. Amortisation is 
recognised on a straight-line basis over their estimated 
useful lives. The estimated useful life and amortisation 
method are reviewed at the end of each reporting 
period, with the effect of any changes in estimate 
being accounted for on a prospective basis.

For intangible assets that have a finite useful life, 
an assessment is made at each reporting date for 
indications of impairment. An impairment loss is 
recognised for the amount by which the asset’s 
carrying amount exceeds its recoverable amount. 
The recoverable amount is the higher of the asset’s 
fair value less costs to sell and value-in-use. For the 
purposes of assessing impairment, assets are grouped 

at the lowest levels for which there are separately 
identifiable cash inflows which are largely independent 
of the cash inflows from other assets or groups of 
assets (CGUs). Intangible assets (other than goodwill) 
that suffered impairment are reviewed for possible 
reversal of the impairment at each reporting date.

Costs incurred in acquiring and developing software, 
that is not cloud based, that will contribute to the 
Group’s future financial benefits are capitalised as 
software and are amortised over the estimated useful 
life on a straight-line basis. Costs capitalised include 
external direct costs of materials, service, consultants 
spent on the projects and internal costs of employees 
directly engaged in delivering the projects. For software 
in the course of development, amortisation commences 
once development is complete and the software is in 
use. Costs incurred on the maintenance of software is 
expensed as incurred and recognised in profit or loss. 
Subsequent expenditure is recognised only when it 
increases the future economic benefits embodied in the 
specific asset to which it relates. All other expenditure, 
including expenditure on internally generated goodwill 
and brands is recognised in profit or loss.

Costs incurred on the maintenance of software is 
expensed as incurred and recognised in profit or loss. 

Derecognition of intangible assets
An intangible asset is derecognised on disposal, 
or when no future economic benefits are expected 
from use or disposal. Gains or losses arising from the 
derecognition of an intangible asset, measured as the 
difference between the net disposal proceeds and the 
carrying amount of the asset, are recognised in profit 
or loss when the asset is derecognised.

Amortisation of intangible assets
Goodwill is allocated to CGUs and is not amortised. 
Brand names have an indefinite useful life and are not 
amortised. For intangible assets which are amortised, 
the useful lives for the current and comparative periods 
are as follows:

•  Management rights: the forecast profile of the 

profit generated

•  Customer relationships and property management 
agreements: the expected life of the contracts 

•  Software and trademarks: 3 to 10 years

Useful lives and residual values are reviewed at each 
reporting date and adjusted if appropriate. 

111

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)21 

Intangible assets (continued)

Key estimates and assumptions
Impairment assessment of intangible assets
The Group assesses whether goodwill is impaired at 
least annually. For the purposes of impairment testing, 
goodwill is allocated to the Group’s CGUs. The CGUs 
align with the Group’s operating segments as disclosed 
in note 3 and are consistent with the comparative 
period. The recoverable amount of each CGU is 
determined based on the value in use calculations that 
utilise five-year cash flow projections plus a terminal 
value based on the financial forecasts approved 
by management. In determining these cash flow 
projections, management considers:

•  current and expected performance of each CGU;

•  Board and management-approved budgets and 

strategic plans; and

•  changes in Australian and international economic 

and market environments. 

The relevant assumptions in deriving the value in use of 
the CGUs are as follows:

• 

the budgeted net profit before tax for each CGU for 
each year within the cash flow projection period;

• 

the pre-tax discount rate; and

•  growth rates, which are consistent with long-

term trends in the industry segments in which the 
CGUs operate.

No impairment charge was recognised during the 
year as the recoverable amount of each CGU was 
determined to be in excess of the carrying amount.

The following CGUs represent the carrying amounts of goodwill:

Asset Management

Lending & Technology

CA&E

Total

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Terminal growth rates

Pre-tax discount rates

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

 12.5% 

 13.0% 

 11.0% 

 12.5% 

 13.0% 

 11.0% 

$’000

 26,163 

 114,159 

 1,326 

$’000

 12,684 

 114,159 

 1,326 

 141,648 

 128,169 

Sensitivity analysis
Management considered, for all CGUs, that reasonable changes in key assumptions, such as an increase in the 
discount rate by 2.5% and a decrease in the growth rate by 1%, leaving all other assumptions constant, would not 
result in the carrying amount exceeding the value in use for any of the CGUs. The sensitivity analysis was done on 
the basis that a reasonably possible change in each key assumption would not have a consequential impact on 
other assumptions.

112

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)22 

Trade and other payables

Current

Accounts payable and accrued expenses

Accrued commissions

Other liabilities

GST payable

Total trade and other payables – current

Non-current 

Other liabilities

Total trade and other payables – non-current

Total trade and other payables

23  Borrowings

Current

Unsecured notes

Unsecured notes – limited recourse

Mortgage trust notes

Total borrowings – current

Non-current

Unsecured notes

Unsecured notes – limited recourse

Fund preferred units

Mortgage trust notes

Securitised borrowings¹

Total borrowings – non-current

Total borrowings

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 16,050 

16,689

 25,000 

 1,901 

59,640

 5,449 

 5,449 

65,089

 40,000 

 30,030 

 335,485 

 405,515 

 25,000 

 109,190 

 26,187 

 37,541 

 11,674 

 2,163 

 77,565 

 240 

 240 

 77,805 

 - 

 30,030 

 216,475 

 246,505 

 65,000 

 60,000 

 1,127,452 

 568,584 

 471,920 

 14,419 

 1,747,981 

 2,153,496 

 - 

 - 

 693,584 

 940,089 

1.  The securitised borrowings are within a consolidated credit trust and is secured against the assets of that consolidated credit trust. 

Information about the Group’s exposure to interest rate and liquidity risk is included in note 25.

Unsecured notes programme

(a) 
Except for the obligation to pay periodic interest and repay the principal, the terms of the unsecured notes, 
including the limited recourse notes, do not include any material undertakings or obligations which, if not complied 
with, would result in an acceleration of the amount owing.

113

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)23  Borrowings (continued)

(a) 

Unsecured notes programme (continued)

(i) 

Unsecured notes

Classification

Issue

Maturity date

Amount ($m)

Interest rate per annum

(ii) 

Unsecured notes – limited recourse

MA IV

MA VI

Current

Non-current

2020

2022

Sep 2024

Sep 2027

 40.0 

5.85%

 25.0 

5.75%

Classification

Issue

Maturity Date

Amount ($m)

MACI

MACPI

MALI 1

MALI 2

Current

Non-current

Non-current

Non-current

2019

2021

2023

2023

May 2024

Dec 2027

May 2028

July 2026

 30.0 

 70.0 

 10.0 

 29.2 

8.10%

Interest rate per annum

RBA + 4.35%

RBA + 4.00%

RBA + 10.25%

The MACI and MACPI limited recourse notes have 
been designed and issued principally for investors 
under the Significant Investor Visa (SIV) programme. 
The notes constitute unsecured, unsubordinated 
obligations of issuing special purpose Group entities 
(issuing entities). The issuing entities invest the 
proceeds of the note issuances in a diversified portfolio 
of financial assets. The notes have sole recourse to 
the assets of the relevant issuing entities and are not 
guaranteed by the Company.

MACI

The MACI note has a five-year stated maturity, 
however can be redeemed at the option of the note 
holders subject to a minimum 12-month holding period 
following issue. This redemption feature was designed 
to provide for the individual requirements of the SIV 
investors to align with the timing of when the SIV 
investors receive their permanent residency status. 
The interest rate is calculated at a margin of 4.35% 
over the RBA cash rate and resets in February and 
August of each year. There were no redemptions of the 
MACI note during the year ended 31 December 2023 
(year ended 31 December 2022: nil).

MACPI

The MACPI note has a six-year maturity with the 
interest rate calculated at a margin of 4.00% over the 
RBA cash rate and resets in February and August of 
each year. $10.0 million of additional funds were raised 
during the period (year ended 31 December 2022: 
$35.0 million). The MACPI note facilitates investments 
for note investors with assets restricted for the benefit 
of those investors. 

MALI 1

During the year, $10.0 million was raised via the 
issuance of the MALI 1 note. The note has a five-year 
maturity with the interest rate calculated at a margin 
of 10.25% over the RBA. The note is limited in recourse 
only to the assets of the issuer. If proceeds from those 
assets are insufficient to repay or redeem the notes, 
then there will be no further recourse to the broader 
assets of the Group.

MALI 2

During the year, $29.2 million was raised via the 
issuance of the MALI 2 note. The note has a three-
year maturity with an interest rate of 8.1%. The note is 
limited in recourse only to the assets of the issuer. If 
proceeds from those assets are insufficient to repay 
or redeem the notes, then there will be no further 
recourse to the broader assets of the Group.

114

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)23  Borrowings (continued)

(b) 

Fund preferred units

MA Priority Income Fund (PIF) and MA USD Priority 
Income Fund (USD PIF)

The Group manages the PIF and USD PIF. The Funds 
provide investors with exposure to a diversified 
portfolio of credit investments via an investment in 
Class A Units (Fund Preferred Units) in MA Master 
Credit Trust, MA USD Master Credit Trust and MA 
Diversified Credit Trust (MCTs). As a co-investment, 
the Group holds Class B Units in the respective MCTs. 
The MCTs are consolidated entities of the Group.

Fund Preferred Units receive a preferential distribution 
from the realised profits of the MCTs. The Class B Units 
held by the Group receive any excess distributable 

profits after paying the preferential distribution on 
the Fund Preferred Units and any MCT expenses. The 
Class B Units held by the Group also provides investors 
with a “first loss” capital buffer which affords the Fund 
Preferred Units preferential treatment on distribution 
and wind-up of the MCTs. The Group’s maximum 
economic exposure is limited to the value of the  
Class B Unit.

Redemptions of the Fund Preferred Units are at the 
discretion of the MCTs trustee and require the consent 
of the Group. Therefore the units are treated as non-
current liabilities as the Group has an unconditional 
right to defer settlement for at least 12 months after 
the end of the reporting period. 

Classification

Fund Preferred Units:

31 December 2023 ($m)

31 December 2022 ($m)

Fund Preferred Units preferential distribution

Class B Units "first loss" co-investment:

31 December 2023 ($m)

31 December 2022 ($m)

1.  Secured Overnight Financing Rate.

(c) 

Mortgage trust notes

The Group’s mortgage lending activity is funded 
through a combination of warehouse facilities provided 
by major and mid-tier Australian and international 
banks, and public term securitisation transactions.

Warehouse facilities are limited recourse funding 
vehicles established by the Group and funded by 
key banking partners to originate new mortgages to 
customers. As at 31 December 2023, the unutilised 
capacity across all facilities is $1,078.0 million (2022: 
$208.5 million). The maturity date for these facilities 
range from less than 12 months to up to 36 months 
from reporting date.

PIF

USD PIF

Non-current

Non-current

1,107.4

544.8

RBA cash rate 
+ 4.00%

10%

 110.7 

 54.5 

20.1

23.8

SOFR1 + 3.50%

10% reducing  
to 5%

 2.0 

 2.4 

A term securitisation transaction is where a pool of 
mortgage assets, initially originated in the Group’s 
warehouse facilities, are grouped together and sold 
to a new limited recourse funding vehicle, which then 
issues securities against those mortgage assets 
(residential mortgage-based securities) to investors 
in public wholesale capital markets. The Group 
completed its first term securitisation transaction in 
November 2023.

115

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)24  Provisions

Current

Salaries, wages and bonuses

Provision for annual leave

Provision for long service leave

Total provisions – current

Non-current 

Provision for long service leave

Total provisions – non-current

Total provisions

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 28,941 

 6,658 

 3,196 

 38,795 

 1,645 

 1,645 

 33,817 

 7,661 

 3,527 

 45,005 

 1,624 

 1,624 

 40,440 

 46,629 

Accounting policy
Employee benefit liabilities represents accrued 
wages, salaries, bonus, annual and long service leave 
entitlements recognised in respect of employee 
services up to the end of the reporting date.

Liabilities recognised in respect of short-term 
employee benefits are measured at the amounts 
expected to be paid when the liabilities are settled 
by the Group in respect of services provided by 
employees up to the reporting date.

Liabilities recognised in respect of long-term employee 
benefits are measured as the present value of the 
estimated future cash outflows to be made by the 
Group in respect of services provided by employees up 
to the reporting date.

Key estimates and assumptions
The amount recognised as a provision is the best 
estimate of the consideration required to settle 
the present obligation at the end of the reporting 
date, taking into account the risks and uncertainties 
surrounding the obligation. When a provision is 
measured using the cash flows estimated to settle the 
present obligation, its carrying amount is the present 
value of those cash flows.

116

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management

25.1  Risk management framework

The Group’s activities expose it to a variety of financial 
and non-financial risks. Financial risks include credit 
risk, liquidity risk and market risk (including currency 
risk, interest rate risk and price risk). The Group’s 
overall risk management framework operates to 
identify and assess all the risks to which the Group 
is exposed, including financial risks, with the aim of 
identifying options for risk treatment, maintaining 
the Group’s exposure within the parameters set 
out in its Risk Appetite Statement, and to provide 
management information.

The Group’s overall risk management framework is 
summarised in its Corporate Governance Statement, 
available on its website, and in the Sustainability 
report. These documents outline the role of the Board, 
the Audit and Risk Committee (ARC), the Group’s 
Risk Appetite Statement and the Risk Management 
Statement which describes the approach to risk 
management – including responsibilities, governance, 
methods for risk identification, treatment and 
reporting, and coordination across the Group. Detailed 
procedures and system guides are typically maintained 
at the business unit level and also in the Group’s 
finance function.

The Board is responsible, in conjunction with senior 
management, for ensuring the Group maintains a 
risk management framework, for understanding the 
risks associated with the activities of the Group, and 
implementing structures and policies to adequately 
monitor and manage those risks. The Board is 
assisted by the ARC and by the Senior Executive 
Risk Committee.

The practical management of many financial risks 
takes place, in the first instance, within the Group’s 
business units, led by senior managers. This includes 
the management of financial risks in relation to 
investment funds, which can involve client monies, 
fund costs, financing investments and managing debt 
facilities. The Group’s finance function maintains 
oversight of this activity, especially where it has 
implications for the Group’s financial resources 
and accounting.

25.2  Capital management

The capital structure of the Group consists of net 
cash (cash and bank balances offset by the unsecured 
notes, drawn portion of the working capital facility) 
and equity (comprising contributed equity, retained 
earnings and reserves).

The Group manages its capital with the aim of ensuring 
that the Group will be able to continue as a going 
concern while maximising the return to shareholders 
through the optimisation of the debt and equity 
balance. The Group’s overall capital management 
strategy remains unchanged from 2022.

The Group’s subsidiaries have satisfied all externally 
imposed capital requirements throughout the financial 
year, as per the requirements set out below:

•  MA Moelis Australia Securities Pty Ltd, is an ASX 
market participant and therefore has an externally 
imposed capital requirement. 

•  Certain other subsidiaries of the Company hold 
an Australian Financial Services Licence (AFSL) 
and therefore have externally imposed separate 
capital requirements.

•  MA Money has a contractual obligation to hold a 

minimum amount of capital at all times.

During the year, the Group upsized its revolving 
working capital facility from $40.0 million to $80.0 
million. The facility was undrawn at 31 December 2023. 
In accordance with the terms of the working capital 
facility, the Group is required to comply with certain 
covenants. During the year ended to 31 December 
2023, the Group was compliant with these covenants.

The Group’s borrowings comprise unsecured notes 
of $204.2 million (2022: $155.0 million), mortgage 
trust notes $807.4 million (2022: $216.5 million), fund 
preferred units $1,127.5 million (2022: $568.6 million) 
and securitised borrowings $14.4 million (2022: nil).

The maturity dates of the unsecured notes are shown 
in the table below. Except for the obligation to pay 
periodic interest and repay the principal at the end 
of the term, the terms of the unsecured notes do 
not include any material undertakings or obligations 
which, if not complied with, would result in an 
acceleration of the amount owing. The maturity dates 
of the unsecured notes are shown in the table below. 
Except for the obligation to pay periodic interest and 
repay the principal at the end of the term, the terms 
of the unsecured notes do not include any material 
undertakings or obligations which, if not complied with, 
would result in an acceleration of the amount owing. 
The MACPI note cannot be redeemed at the option of 
the note holders and must be held to maturity.

117

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.2  Capital management (continued)

Unsecured notes

Current

MA IV

Non-current

MA IV

MA VI

Unsecured notes – limited recourse

Current

MACI 

Non-current

MACPI 

MALI 1

MALI 2

Total unsecured notes

Maturity date

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

30 September 2024

 40,000 

 - 

30 September 2024

30 September 2027

 - 

 25,000 

 40,000 

 25,000 

16 May 2024

 30,030 

 30,030 

1 December 2027

10 May 2028

31 July 2026

 70,000 

 10,000 

 29,190 

 60,000 

 - 

 - 

 204,220 

 155,030 

25.3  Market risk

25.3.1  Currency risk

Market risk is the risk that the fair value and/or future 
cash flows from a financial instrument will fluctuate 
as a result of changes in market factors. Market risk 
comprises of:

•  Currency risk: due to fluctuations in foreign 

currency exchange rates;

• 

Interest rate risk: due to fluctuations in market 
interest rates; and

•  Price risk: due to fluctuations in fair value of 

equities and other instruments.

The Group’s investment of capital in foreign operations, 
for example, subsidiaries or associates with functional 
currencies other than the Australian dollar, exposes 
the Group to the risk of changes in foreign exchange 
rates. Variations in the value of these foreign operations 
arising as a result of exchange differences are reflected 
in the foreign currency translation reserve in equity.

The Group manages its exposure to income 
denominated in foreign currency when foreign currency 
income is recognised or received in cash. Foreign 
currency debtors and foreign currency bank balances 
are periodically reviewed relative to the Group’s balance 
sheet and liquidity requirements. Revenue received in 
foreign currency may be retained in those currencies, 
in order to meet future foreign currency denominated 
expenses, and exposes the Group to unrealised foreign 
currency gains or losses.

118

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.3  Market risk (continued)

25.3.1  Currency risk (continued)

The following table details the Group’s net exposure to foreign currency as at the reporting date in Australian dollar 
equivalent amounts.

Currency

United States Dollar

Chinese Yuan

Great British Pound

Hong Kong Dollar

Exposure in Australian dollars

Assets

Liabilities

31 Dec 2023
$’000

31 Dec 2022
$’000

31 Dec 2023
$’000

31 Dec 2022
$’000

108,494

 301 

 492 

 1,367 

 110,654 

 37,241 

 218 

 3,906 

 1,216 

 42,581 

46,452

 36,117 

 42 

 43 

 831 

 43 

 43 

 109 

 47,368 

 36,312 

Foreign currency sensitivity analysis
The Group’s exposure to foreign exchange risk is 
measured using sensitivity analysis. The table below 
presets the sensitivity of the Group’s net exposure to 
the currencies, with the most impact to the Group, 
against the Australian dollar at the year end. A 

sensitivity of 10% continues to be applied as it remains 
reasonable given the current level of exchange rates 
and volatility. The impact to profit or loss and equity is 
at a post-tax rate of 30%. The risks faced and methods 
used in the sensitivity analysis are the same as those 
applied in the comparative period.

Sensitivity

31 Dec 2023  
Profit/(loss)
$’000

31 Dec 2023 
Change in equity
$’000

31 Dec 2022 
Profit/(loss)
$’000

31 Dec 2022 
Change in equity
$’000

Currency

United States Dollar

Chinese Yuan

Great British Pound

Hong Kong Dollar

Total

+/-10%

+/-10%

+/-10%

+/-10%

6,204/(6,204) 

6,204/(6,204) 

 26/(26) 

 45/(45) 

 54/(54) 

 26/(26) 

 45/(45) 

 54/(54) 

 112/(112) 

 18/(18) 

 112/(112) 

 18/(18) 

 386/(386) 

 386/(386) 

 111/(111) 

 111/(111) 

 6,329/(6,329) 

 6,329/(6,329) 

 627/(627) 

 627/(627) 

25.3.2  Interest rate risk
Interest rate risk is the risk to the Group’s earnings and equity arising from movements in market interest rates. 
Interest rate exposure is driven by interest rate mismatches between assets and liabilities. Positions are monitored 
to ensure risk levels are maintained within established limits.

119

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.3  Market risk (continued)

25.3.2  Interest rate risk (continued)

The Group’s main interest rate risk arises from cash, loans receivable and interest-bearing facilities. The table 
below summarises the profile of the Group’s interest-bearing financial instruments at reporting date.

Fixed rate instruments

Loans receivable

Unsecured notes

Total

Variable rate instruments

Loans receivable

Unsecured notes

Mortgage trust notes

Fund preferred units

Securitised borrowings

Total

Carrying amount

31 Dec 2023
$’000

31 Dec 2022
$’000

 157,830 

 (94,200)

 63,630 

 155,049 

 (65,000)

 90,049 

 1,921,886 

 700,433 

 (110,020)

 (807,405)

 (90,030)

 (216,475)

 (1,127,452)

 (568,584)

 (14,419)

 (137,410)

 - 

 (174,656)

Interest rate sensitivity analysis
The Group’s sensitivity to movements in interest rates in relation to the value of interest-bearing financial 
instruments is shown in the table below. The impact on profit and equity is at a post-tax rate of 30%. The risks 
faced and methods used in the sensitivity analysis are the same as those applied in the comparative period.

Change in  
interest rates

31 Dec 2023  
Profit/(loss)
$’000

31 Dec 2023 
Change in equity
$’000

31 Dec 2022 
Profit/(loss)
$’000

31 Dec 2022 
Change in equity
$’000

Loans receivable

+/-1%

 20,797/(20,797) 

 20,797/(20,797) 

 8,533/(8,533) 

 8,533/(8,533) 

Borrowings

+/-1%

 21,535/(21,535) 

 21,535/(21,535) 

 8,500/(8,500) 

 8,500/(8,500) 

25.3.3  Price risk 
Price risk is the risk that the fair value of a financial 
instrument will fluctuate as a result of changes in 
market prices (other than those arising from interest 
rate or currency risk). The Group is exposed to equity 
price risk on its holdings in equity investments.

The potential impact of movements in the market value 
of listed and unlisted equities is shown in the below 
sensitivity analysis. The impact on profit and equity is 
at a post-tax rate of 30%. The risks faced and methods 
used in the sensitivity analysis are the same as those 
applied in the comparative period.

Equities

Listed equities

Unlisted equities

Change in  
market prices 

+/-5%

+/-5%

31 Dec 2023  
Profit/(loss)
$’000

31 Dec 2023 
Change in equity
$’000

31 Dec 2022 
Profit/(loss)
$’000

31 Dec 2022 
Change in equity
$’000

 55/(55) 

 55/(55) 

806/(806)

806/(806)

 1,342/(1,342) 

 1,342/(1,342) 

 1,267/(1,267) 

 1,267/(1,267) 

120

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.4  Credit risk

Credit risk refers to the risk that a counterparty to a 
financial instrument will fail to meet its contractual 
obligations when they fall due.

The Group mitigates its treasury-related counterparty 
credit risk by ensuring its cash and liquid assets are 
held with financial institutions of requisite credit quality.

The Group’s primary credit risk exposures relate to its 
credit investment and lending activities. Where credit 
investments are originated or financed through an 
investment fund vehicle, the Group will only have direct 
exposure to credit risk to the extent it has participated 
in funding, underwriting the loan, or co-investing in 
the fund. The Group co-invests in some of its credit 
investment fund vehicles in various ways, including as a 
fund unitholder and, in some cases, as a subordinated 
unitholder. The Group may face indirect consequences 
from borrower default or other impacts of credit 
risk including lower fund investment returns, client 
dissatisfaction and the time and expense required to 
intensively manage the position. Note 15 details the 
Group’s approach to recognising and measuring ECL 
on credit investments.

The Group engages in a range of credit investment 
activities, managed by its Global Credit Solutions 
and Real Estate Credit teams, which can include 
making secured loans to corporate borrowers, real 
estate development funding, specialty credit and 
asset-backed lending opportunities. The Group also 
undertakes direct lending through its lending platforms, 
including MA Money (for residential home loans) 
and its specialty finance business (for certain types 
of specialty credit where the Group is an originator 
of assets outside the credit investment activities it 
undertakes for its managed funds). In general terms, 
the Group controls its credit risk exposure by assessing 
the creditworthiness of counterparties and obtaining 
sufficient collateral, where appropriate, as a means 
of mitigating the risk of financial loss from defaults. 
The Group only transacts with counterparties with 
an acceptable level of credit risk through use of a 
rigorous credit risk evaluation process, which may be 
augmented by a shadow rating process which can then 
be monitored over the life of the loan facility. 

Maximum exposure to credit risk
The carrying amount of the Group’s financial assets 
and contract assets reported on the Statement of 
financial position represents the maximum exposure to 
credit risk.

Receivables
The Group’s exposure to credit risk is influenced mainly 
by the individual characteristics of each customer. The 
Group does not require collateral in respect of trade and 
other receivables. At each reporting period, the Group 
reviews the recoverable amount of each receivable 
on an individual basis to ensure that adequate loss 
allowance is made for irrecoverable amounts.

Contract assets
The Group’s contract assets relate mainly to high credit 
quality financial institutions. The Group bears the risk 
of non-payment of future trail commissions by lenders 
should they not maintain solvency. However, should 
a lender not meet its obligations as a debtor then the 
Group is under no obligation to pay out any future trail 
commissions to brokers.

Commercial loans
Where a loan is funded primarily by the Group’s financial 
resources, it is subject to approval by the Group’s 
Credit Investment Committee. In other cases, above de 
minimis levels, it requires the approval of the relevant 
fund or divisional Credit Investment Committee. The 
exact nature of the credit analysis undertaken differs 
depending on the nature of the lending activity and 
the size of the loan. In general, credit risk analysis is 
focused on ensuring that risks have been fully identified 
and that the downside risk is properly understood and 
acceptable and can include an assessment of:

• 

• 

• 

• 

• 

• 

the fundamental characteristics of the borrower, 
including its asset, business or commercial 
dynamics; 

the borrower’s industry and relevant industry 
dynamics; 

the owner or sponsor of the borrower; 

the borrower’s financial characteristics, along with 
commercial and qualitative performance dynamics;

the borrower’s own credit and financial risk 
management practices;

ratings or internal shadow rating calculations using 
public information and financial information of 
the borrower;

•  historical loan performance, nature of risk and yield;

•  borrower’s credit policy to ascertain their 

underwriting practices;

•  alignment to the Group’s risk appetite; and

•  securitisation of assets and undertakings.

121

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.4  Credit risk (continued)

To mitigate exposure to loan defaults, security and 
collateral are often negotiated and documented in 
executed loan agreements. Ongoing monitoring of 
borrowers’ financial performance (including arrears 
balances, ageing of arrears and losses incurred) are 
performed and any exceptions reported to senior 
management who use the information to review 
individual loan exposures, make decisions on reducing 
commitments, and where required refinancing options 
to refinance out of certain exposures no longer aligned 
to risk appetite.

The Group completes an assessment of whether there 
is a significant increase in credit risk when an amount 
becomes more than 90 days past due on a case by 
case basis due to the fact that:

• 

the majority of the counterparties for commercial 
loans made are through the Group’s managed funds, 
and therefore the credit risk is lower compared to 
external counterparties; and

•  historically there have been no defaults from 
loans described above despite being over 90 
days with amounts being repaid in full within a 
reasonable period.

Residential mortgages
The Group manages its credit risk from residential 
mortgages by lending responsibly and obtaining 
security over residential property for each loan. 
In monitoring the credit risk, loans are grouped 
according to their credit characteristics using credit 
risk classifications. This includes the use of the Loan 
to Value Ratio (LVR) and days in arrears to assess the 
Group’s exposure to credit risk.

The Group has a credit risk framework and credit 
risk policy for its residential lending that aligns to the 
responsible lending regulations. It includes stringent 
underwriting criteria and a thorough analysis of a 
borrower’s credit worthiness. The Group’s Credit Risk 
Council is responsible for the active management, 
implementation, and oversight of its credit 
risk framework.

Under the Group’s monitoring procedures, a significant 
increase in credit risk is identified pre-emptively, 
before a default occurs. This process includes 
identifying exposures that become 30 days past 
due as a key indicator of increased risk. The Group’s 
loan portfolio management strategies support the 
individual circumstances of customers in line with its 
hardship policies.

122

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.4  Credit risk (continued)

Ageing of amortised cost financial asset
The table below gives information regarding the carrying value of the Group’s financial assets measured at 
amortised cost. The analysis splits these assets by those that are not past due and those that are past due.

Past due

Amortised cost 
financial assets

Not past due 
$’000

1–30 days 
$’000

31–60 days
$’000

61–90 days
$’000

90+ days 
$’000

Total

31 December 2023

Receivables

Loans receivable

Total

31 December 2022

Receivables

Loans receivable

Total

59,787

 2,013,417 

2,073,204

 83,021 

 835,686 

 918,707 

 1,869 

 34,150 

 36,019 

 212 

 12,195 

 12,407 

 85 

 18,246 

 18,331 

 96 

 4,584 

 4,680 

 - 

 24,675 

86,416

 8,294 

 8,294 

 5,609 

 2,079,716 

 30,284 

2,166,132

 799 

 60 

 859 

 4,355 

 2,957 

 7,312 

 88,483 

 855,482 

 943,965 

The table below summarises the loans receivable and the loss allowance by stage.

31 December 2023

Loans receivable

Loss allowance

Total

31 December 2022

Loans receivable

Loss allowance

Total

Stage I 
$’000

 2,053,217 

 (5,649)

 2,047,568 

 852,212 

 (4,331)

 847,881 

Lifetime ECL

Stage II 
$’000

 26,674 

 (135)

 26,539 

 4,974 

 (330)

 4,644 

Stage III 
$’000

Total 
$’000

 5,835 

 (226)

 5,609 

 3,008 

 (51)

 2,957 

 2,085,726 

 (6,010)

 2,079,716 

 860,194 

 (4,712)

 855,482 

25.5  Liquidity risk

Liquidity risk is the risk that financial obligations of the 
Group cannot be met as and when they fall due without 
incurring significant costs. The Group manages liquidity 
risk by monitoring forecast cash requirements, both 
short and longer term, against its current liquid assets.

The Group aims to ensure that it has sufficient liquidity 
to meet its obligations on a short, medium and long-
term basis. In setting the level of sufficient liquidity, 
the Group considers contractual obligations, minimum 
cash requirements, AFSL requirements, cash flow 
forecasts, associated reporting requirements, other 
liquidity risks and contingency plans.

The following table details the Group’s remaining 
contractual maturity for its non-derivative financial 
liabilities. The table reflects the undiscounted cash 
flows of financial liabilities based on the earliest date 
on which the Group can be required to pay. Mortgage 
trust notes issued by the Group’s consolidated 
mortgage warehouse trusts are excluded in the table 
as, under such arrangements, the note holder recourse 
is limited to the assets of the relevant mortgage 
warehouse trust to which the liability relates and 
the repayment profile of the mortgage trust notes 
is matched to the repayments collected from the 
loan assets.

123

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)25 

Financial risk management (continued)

25.5  Liquidity risk (continued)

Maturity profile of 
undiscounted financial 
liabilities

Less than  
1 month 
$’000

1–3 months
$’000

3–12 months
$’000

1–5 years 
$’000

5+ years
$’000

Total 
$’000

31 December 2023

Trade and other  
payables

Other financial liabilities 

Unsecured notes

Fund preferred units

Lease liabilities

Total financial liabilities 

31 December 2022

Trade and other  
payables

Other financial liabilities 

Unsecured notes

Fund preferred units

Lease liabilities

 - 

 - 

 - 

 844 

 51,152 

 - 

 - 

 - 

 837 

Total financial liabilities 

 74,063 

50,308

 9,297 

 36 

 5,448 

 - 

 - 

 - 

 102,415 

 - 

 70,030 

 134,190 

 - 

 1,127,452 

 - 

 - 

 - 

 - 

65,089

 102,415 

 204,220 

 1,127,452 

 1,742 

 7,758 

 57,179 

 23,236 

 90,759 

 11,039 

 180,239 

 1,324,269 

 23,236 

 1,589,935 

 73,226 

 4,339 

 - 

 - 

 - 

 1,714 

 6,053 

 - 

 116,419 

 240 

 - 

 - 

 - 

 155,030 

 568,584 

 - 

 - 

 - 

 - 

 77,805 

 116,419 

 155,030 

 568,584 

 7,715 

 46,563 

 27,384 

 84,213 

 124,134 

 770,417 

 27,384 

 1,002,051 

The amounts included above for variable interest rate instruments for non-derivative financial liabilities are subject 
to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of 
the reporting period. 

26 

Fair value of financial assets and financial liabilities

Fair value is the price that would be received to sell 
an asset or paid to transfer a liability in an orderly 
transaction between market participants at the 
measurement date, regardless of whether that price 
is directly observable or estimated using another 
valuation technique.

Where one is available, the Group measures the fair 
value of an instrument using the quoted price in an 
active market for that instrument. A market is regarded 
as active if transactions for the asset or liability take 
place with sufficient frequency and volume to provide 
pricing information on an ongoing basis.

If there is no quoted price in an active market, then the 
Group uses valuation techniques that maximise the use 
of relevant observant inputs and minimise the use of 
unobservable inputs. The chosen valuation technique 
incorporates all of the factors that market participants 
would take into account in pricing a transaction.

Financial instruments measured at fair value are 
categorised under a three-level hierarchy, reflecting 
the availability of observable market inputs when 
estimating the fair value. If different levels of inputs 
are used to measure a financial instrument’s fair 
value, the classification within the hierarchy is based 
on the lowest level that is significant to the fair value 
measurement. Items measured at fair value are 
categorised in their entirety, in accordance with the 
levels of the fair value hierarchy as outlined below.

Level 1  Unadjusted quoted prices in active markets for 
identical assets or liabilities that the entity can access 
at the measurement date (i.e. listed securities).

Level 2 Valuation inputs other than quoted prices 
included within Level 1 that are observable for the 
asset or liability, either directly or indirectly. 

Level 3 Valuation inputs that are not based on 
observable market data (unobservable inputs). 

124

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)26 

Fair value of financial assets and financial liabilities (continued)

Valuation techniques
Financial assets and liabilities are accounted for in accordance with AASB 9 and comprises of the following 
categories. 

Basis of measurement

Note

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

Financial assets

Cash and cash equivalents

Amortised cost

Restricted cash

Receivables

Loans receivable

Other financial assets

Deposits

Total financial assets

Financial liabilities

Amortised cost

Amortised cost

Amortised cost/FVTPL

FVTOCI/FVTPL

Amortised cost

Trade and other payables

Amortised cost

Other financial liabilities

FVTOCI

Unsecured notes

Mortgage trust notes

Fund preferred units

Contract liabilities

Total financial liabilities

Amortised cost

Amortised cost

Amortised cost

Amortised cost

12

13

14

17

22

17

23

23

23

16

 180,319 

 700 

 86,416 

 2,079,716 

 186,939 

 3,320 

 144,589 

 700 

 88,483 

 855,482 

 196,312 

 5,027 

 2,537,410 

 1,290,593 

 65,089 

 102,415 

 204,220 

 807,405 

 1,127,452 

 661,158 

 77,805 

 116,419 

 155,030 

 216,475 

 568,584 

 571,365 

 2,967,739 

 1,705,678 

The carrying amount of the Group’s financial assets 
and financial liabilities measured at amortised cost is 
assumed to approximate its fair value at the current 
and prior reporting date.

The Group reviewed its valuation techniques and key 
inputs for its level 2 and level 3 assets on the estimated 
fair values. The review considered the most recent 
independent valuations, quoted unit prices of recent 
equity transactions, expected duration the assets are 
likely to be held for and the macroeconomic outlook for 
the industries each asset operates in. As a result of the 
review, no significant change in the fair values of the 
assets was identified and the Group considers the fair 
values adopted to be appropriate.

Level 3 assets consist of loans receivable classified 
at FVTPL and unlisted investments where a best 
estimate valuation approach is used. Loan valuations 
are sensitive to changes in credit spreads and discount 
rates in determining their fair value. Changes in either 

of these inputs would have an impact on the net profit 
of the Group. The valuation of unlisted investments is 
sensitive to variations in unobservable inputs such as 
cash flow projections and discount rates. An increase 
or a decrease to the inputs into the valuations would 
result in an increase or a decrease the net profit of 
the Group.

Valuation processes

The Group has an established control framework 
with respect to the measurement of fair values. 
This includes a valuation function that has overall 
responsibility for overseeing all significant fair 
value measurements, including level 3 fair values, 
and reports directly to the Chief Financial Officer. 
The valuation function regularly reviews significant 
unobservable inputs and valuation adjustments. 
Significant valuation issues are reported to the Group’s 
Audit and Risk Committee.

125

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)26 

Fair value of financial assets and financial liabilities (continued)

The following table summarises the levels of the fair value hierarchy for financial assets and liabilities that are 
recognised and measured at fair value in the Statement of financial position.

Mandatorily  
at FVTPL

FVTOCI-
equity 
instruments

Total

Level 1

Level 2

Level 3

Total

31 December 2023

Loans receivable

Non-equity securities

Equity securities

Consolidated managed fund  
investments

Total assets measured at 
fair value 

Consolidated managed fund  
investments

Total liabilities measured at 
fair value 

31 December 2022

Loans receivable

Non-equity securities

Consolidated managed fund 
investments 

Total assets measured at 
fair value 

Consolidated managed fund 
investments 

Total liabilities measured at 
fair value 

 5,948 

 7,588 

 619 

 - 

 - 

 5,948 

 7,588 

 - 

 - 

 - 

 - 

 5,948 

 5,948 

 7,588 

 7,588 

 19,717 

 20,336 

 1,087 

 19,249 

 - 

 159,015 

 159,015 

 - 

 159,015 

 - 

 - 

 20,336 

 159,015 

 14,155 

 178,732 

 192,887 

 1,087 

 178,264 

 13,536 

 192,887 

 - 

 - 

 102,415 

 102,415 

 102,415 

 102,415 

 6,223 

 15,479 

 - 

 - 

 6,223 

 15,479 

 - 

 - 

 - 

 - 

 102,415 

 102,415 

 - 

 - 

 102,415 

 102,415 

 - 

 6,223 

 6,223 

 550 

 14,929 

 15,479 

 - 

 - 

 25,973 

 154,860 

 - 

 154,860 

 154,860 

 - 

 154,860 

 22,342 

 180,193 

 202,535 

 528 

 180,855 

 21,152 

 202,535 

 - 

 - 

 116,419 

 116,419 

 116,419 

 116,419 

 - 

 - 

 116,419 

 116,419 

 - 

 - 

 116,419 

 116,419 

Equity securities

 640 

 25,333 

 25,973 

 528 

 25,445 

Reconciliation of balances in level 3 of the fair value hierarchy
During the year there were no transfers between level 1, level 2 and level 3 fair value hierarchies. The following table 
summarises the movements in level 3 of the fair value hierarchy for the financial instruments measured at fair value 
by the Group.

Balance at the beginning of the year

Purchase, issuances and other additions

Sales, settlements and repayments

Fair value movements recognised in profit or loss

Closing balance at the end of the year

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 21,152 

 929 

 (8,756)

 211 

 13,536 

 29,159 

 3,053 

 (11,057)

 (3)

 21,152 

Changing inputs to the level 3 valuations to reasonably possible alternative assumptions would not significantly 
change amounts recognised in profit or loss, total assets, total liabilities or total equity. There are no equity 
investments classified at Level 3 (2022: nil) and no gains and losses are reported in other comprehensive income.

126

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)27  Contributed equity

Ordinary share capital

Treasury shares

Total contributed equity

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 370,980 

 354,057 

 (92,243)

 (78,970)

 278,737 

 275,087 

Contributed equity

31 Dec 2023
Number of shares

31 Dec 2022
Number of shares

31 Dec 2023
$’000

31 Dec 2022
$’000

Ordinary share capital

Balance at the beginning of the year

 175,073,933 

 169,591,372 

 354,057 

Ordinary shares issued

 3,493,878 

 6,376,921 

Share buy-back and cancellation 

 (236,000)

 (894,360)

Equity transaction costs

Transfer from share-based payment 
reserve on vesting of awards

 - 

 - 

 - 

 - 

 17,064 

 (1,027)

 (26)

 912 

 311,178 

 44,188 

 (4,104)

 (131)

 2,926 

Balance at the end of the year

 178,331,811 

 175,073,933 

 370,980 

 354,057 

Treasury shares

Balance at the beginning of the year

 (15,346,005)

 (13,066,811)

 (78,970)

 (56,188)

Ordinary shares issued for 
staff equity awards

 (3,420,530)

 (2,668,356)

On market purchases of shares

 (1,347,789)

 (1,496,448)

 (15,167)

 (6,101)

 (19,417)

 (9,920)

Shares allocated upon exercise of options 

 - 

 16,666 

 - 

 103 

Shares allocated under 
employee share plans

 1,676,941 

 1,868,944 

 7,995 

 6,452 

Balance at the end of the year

 (18,437,383)

 (15,346,005)

 (92,243)

 (78,970)

Contributed equity at the end of the year

 159,894,428 

 159,727,928 

 278,737 

 275,087 

The Company had authorised share capital amounting 
to 178,331,811 ordinary shares at 31 December 2023 
(2022: 175,073,933). Ordinary shares entitle the holder 
to participate in dividends and the proceeds on the 
winding up of the Company in proportion to the number 
of and amounts paid on the shares held. The fully paid 
ordinary shares have no par value.

On a show of hands every member present at a 
meeting in person or by proxy shall have one vote and 
upon a poll each share shall have one vote.

Share buy-back 
On 20 October 2022, the Group announced an on-
market share buy-back of up to $25.0 million. The 
program started on 4 November 2022 and ended 
on 3 November 2023. During the year, the Company 
purchased 236,000 shares at an average price of $4.35 
per share. Shares acquired under the buy-back were 
subsequently cancelled resulting in a reduction of the 
paid-up share capital of the Company.

127

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)27  Contributed equity (continued)

Shares purchased on-market for the 
purpose of an employee incentive scheme
During the year, the Company purchased 1,347,789 
shares on-market (2022: 1,000,000 shares) and no 
shares from its employees during a staff trading 
window (2022: 496,448 shares) in order to meet the 
Group’s shared based payment awards. The average 
price of all share purchases during the year was $4.53 
(2022: $6.63).

Shares issued under a Long-term  
Incentive Plan
During the year, the Company issued 3,420,530 (year 
ended 31 Dec 2022: 2,668,356) fully paid ordinary 
shares in order for eligible employees of the Group to 
acquire loan funded shares in the Company as part of 
the Long-term Incentive (LTI) plan. The average issue 
price of the shares was $4.43 (year ended 31 Dec 2022: 

28  Earnings per share

Basic earnings per share

Diluted earnings per share

$7.28). The purchase price of the shares acquired by 
eligible employees under the LTI was fully funded by 
a limited recourse loan provided by the Company. The 
shares are subject to vesting conditions, including 
performance conditions and continuous employment, 
and carry the same rights as other fully paid ordinary 
shares. Refer to notes 31.4 and 31.5 for further details.

Accounting policy
Ordinary shares are classified as equity. Issued capital 
in respect of ordinary shares is recognised as the 
fair value of the consideration received by the parent 
entity. Incremental costs directly attributable to the 
issue of new shares are shown in equity as a deduction 
from the proceeds.

Treasury shares are ordinary shares in the Company 
held in respect of equity incentive plan awards 
to employees.

31 Dec 2023
Consolidated
Cents

31 Dec 2022
Consolidated
Cents

 17.8 

 17.3 

 28.0 

 26.9 

The earnings used in the calculation of basic and diluted earnings per share is the Group’s profit after tax 
attributable to equity holders of the Company.

Weighted average number of ordinary shares (net of treasury shares) used in 
calculating basic earnings per share

Adjusted for potential equity shares1

Share options

Share rights

Restricted shares

Salary sacrifice shares

Total potential equity shares

31 Dec 2023

31 Dec 2022

 160,179,835 

 160,413,092 

 1,215,528 

 430,365 

 3,170,003 

 28,091 

 2,899,198 

 341,964 

 2,857,404 

 21,967 

 4,843,987 

 6,120,533 

Total weighted average number of ordinary shares (net of treasury shares) and 
potential equity shares used in calculating diluted earnings per share

 165,023,821 

 166,533,625 

1.  Refer to note 31 for detail of the terms and conditions of plans impacting diluted earnings per share.

Accounting policy
Basic earnings per share is calculated by dividing the 
Group’s profit after income tax for the year attributable 
to equity holders of the Company by the weighted 
average number of ordinary shares outstanding during 
the financial year.

Diluted earnings per share is calculated by dividing the 
Group’s profit after income tax for the year attributable 
to equity holders of the Company, adjusted by profit 
attributable to all the dilutive potential ordinary shares 
by the weighted average number of ordinary shares 
and potential ordinary shares that would be issued 
on the exchange of all the dilutive potential ordinary 
shares into ordinary shares.

128

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)29  Dividends

Details of the Group's fully franked dividend payments:

2021 final dividend (12 cents per share paid on 11 March 2022)

2022 interim dividend (6 cents per share paid on 21 September 2022)

2022 final dividend (14 cents per share paid on 22 March 2023)

2023 interim dividend (6 cents per share paid on 20 September 2023)

Dividends paid

Franking credits

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 - 

 - 

 24,256 

 10,649 

 34,905 

 20,466 

 10,452 

 - 

 - 

 30,918 

Franking credits available for the subsequent financial year1

 58,826 

 55,255 

1.  Calculated at a corporate tax rate of 30% (2022: 30%).

Dividends not recognised at the end of the financial year
Since the end of the financial year, the Directors have resolved to pay a fully franked dividend of 14 cents per share, 
payable on 20 March 2024. The aggregate amount of the proposed dividend expected to be paid from retained 
profits, but not recognised as a liability at the end of the year is $25.0 million. This amount has been estimated 
based on the number of shares eligible to participate as at 31 December 2023.

128

129

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 39,181 

 15,124 

 (6,881)

 (2,726)

 44,698 

 21,424 

 (8,856)

 2,556 

 15,124 

 (6,598)

 510 

 (793)

 (6,881)

 211 

 (2,937)

 (2,726)

 63,624 

 63,624 

 38,974 

 21,424 

 (6,598)

 211 

 54,011 

 19,815 

 3,141 

 (1,532)

 21,424 

 (5,677)

 (2,504)

 1,583 

 (6,598)

 - 

 211 

 211 

 - 

 - 

30  Reserves and non-controlling interests

Reserves

Share-based payment reserve (refer to note 31)

Associates OCI reserve

FVTOCI reserve

Foreign currency translation reserve (FCTR)

Total reserves

Associates OCI reserve

Balance at the beginning of the year

Share of other comprehensive (loss)/income of associates

Income tax relating to the revaluation of associates

Balance at the end of the year

FVTOCI reserve

Balance at the beginning of the year

Net gain/(loss) arising on revaluation of financial assets

Income tax relating to gain/(loss) arising on revaluation of financial assets

Balance at the end of the year

FCTR reserve

Balance at the beginning of the year

Foreign exchange movement on translation of foreign operations

Balance at the end of the year

Non-controlling interests

Reserves

Total non-controlling interests

Accounting policy

Share-based payments reserve
Equity settled share-based payments to employees and 
others providing similar services are measured at the 
fair value of the equity instruments at the grant date.

The fair value determined at the grant date of the 
equity settled share-based payments is expensed on 
a straight-line basis over the vesting period, based 
on the Group’s estimate of equity instruments that 
will eventually vest, with a corresponding increase in 
equity. At the end of each reporting period, the Group 
revises its estimate of the number of instruments 

expected to vest. The impact of the revision of the 
original estimates, if any, is recognised in profit or loss 
such that the cumulative expense reflects the revised 
estimate, with a corresponding adjustment to the 
share-based payment reserve.

Equity settled share-based payment transactions with 
parties other than employees are measured at the 
fair value of goods or services received, except where 
that fair value cannot be estimated reliably, in which 
case they are measured at the fair value of the equity 
instruments granted at the date the entity obtains the 
goods or the counterparty renders the service.

130

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)30  Reserves and non-controlling interests (continued)

Accounting policy (continued)

Foreign currency translation reserve
The results and financial position of subsidiaries 
that have a functional currency different from the 
presentation currency are translated into Australian 
dollars at the rate of exchange at the Statement of 
financial position date. Exchange differences arising 
on the retranslation are taken directly to the foreign 
currency translation reserve in equity.

On disposal of a foreign operation, in part or in 
full, the cumulative amount in the foreign currency 
translation reserve is recognised in the Statement of 
profit or loss and other comprehensive income or to 
non-controlling interest.

31 

Share-based payments

Share-based payment reserve

Balance at the beginning of the year

Amortisation of share options

Amortisation of share rights

Amortisation of restricted shares

Amortisation of loan funded shares

Amortisation of share appreciation rights

Amortisation of deferred remuneration on business acquisitions

Vesting of share-based payments

Balance at the end of the year

Non-controlling interests
This reserve relates to the recognition made directly 
in equity for outside ownership interests in entities 
controlled by the Group. It includes changes arising 
from movements in the ownership interests.

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 38,974 

 34,353 

 7 

 707 

 7,564 

 439 

 1,757 

 - 

 (10,267)

 39,181 

 59 

 1,044 

 8,641 

 3,963 

 1,215 

 800 

 (11,101)

 38,974 

The component of annual bonus expected to be 
paid in shares has been accounted for as a share-
based payment, with the amounts accruing over the 
expected vesting period of between 1 to 3 years. The 
profit or loss impact (after tax) of the estimated share 
component for services received for the year ended 31 

December 2023 was $2.0 million (2022: $3.5 million). 
The accounting standards require the value of the 
share-based component to be determined when there 
is a shared understanding of the terms and conditions 
of the scheme and so the estimate of the accrual to 
date could change until this grant date is achieved.

131

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 

Share based payments (continued)

31.1 

Employee share options

The Group has granted options to certain employees of the Group. For accounting purposes, fair value of the 
options is amortised as an expense over the vesting period of the options.

Number of options

Weighted average exercise price 
$

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Balance at the beginning of the year

 1,986,413 

 2,875,391 

Forfeited during the year

Exercised during the year

 (10,000)

 (1,086,476)

 (16,668)

 (872,310)

Balance at the end of the year

 889,937 

 1,986,413 

 3.53 

 3.35 

 3.29 

 3.82 

 3.41 

 3.35 

 3.14 

 3.53 

No share options were issued, forfeited or exercised 
since the end of the reporting period. 389,937 employee 
share options were exercisable as at year end.

2017 share options
Prior to the listing of the Company, a number of 
employees were provided the opportunity to purchase 
options (share option), with each share option carrying 
the right to acquire one share in the Company at a 
future date. As a result of the offer, the Company 
issued 5,468,750 share options on 8 April 2017.

Each share option is exercisable for a period of one 
year, commencing on the first exercise date applicable 
to the relevant tranche (exercise window) as set out in 
the table below. Each share option expires if it is not 

exercised within the relevant exercise window. The 
vesting period of the share options runs from the grant 
date to the first exercise date as shown in the table 
below. Unless otherwise determined by the Board, a 
share option holder must continue to be employed by 
the Group in order to exercise the share option.

Share options do not carry any dividend entitlement. 
Shares issued on exercise of share options will rank 
equally with other shares of the Company on and from 
issue. There are no inherent participating rights or 
entitlements inherent in the share option and share 
option holders will not be entitled to participate in new 
issues of capital offered to shareholders during the life 
of the share option. The issue price of the share option 
was paid by the recipient on receipt of the share option.

The table below provides the details of options issued on 8 April 2017:

Numbers of 
options at 
beginning 
of year

Acquired 
by

Grant 
date share 
price

Exercise 
price of 

option Issue price

Earliest 
date of 
exercise

Expiry 
date

Options 
forfeited 
during  
the year

Options 
exercised 
during  
the year

Number of 
options at 
year end

 351,747  Employees

 1,134,666  Employees

$2.35

$2.35

$3.15

$3.35

$0.03 8/04/2022 7/04/2023

 - 

 351,747 

 - 

$0.01 8/04/2023 7/04/2024

 10,000 

 734,729 

 389,937 

 1,486,413 

 10,000 

 1,086,476 

 389,937 

Fair value of share options granted
The weighted average value of the share option at the 
time of grant was $0.0375.

The fair value of the share option was calculated using 
a Black-Scholes model, adjusted for expectations 
of forfeiture due to employee departures. The 
assumptions used in calculating the fair value are 
shown below and are common to all tranches of share 
options, unless otherwise stated:

•  Dividend yield 4.0%.
•  Risk-free rate 2.5%.
•  Expected volatility of 30%, calculated based on the 

volatility of comparable listed entities.

•  Expected life of option is the maximum term up to 

last day of the exercise window.

•  Forfeiture assumptions for the options granted 
to employees are that 16%, 20% and 23% of 
Share options are forfeited for tranches 1, 2 and 
3 respectively.

132

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 

Share based payments (continued)

31.1 

Employee share options (continued)

2020 share options
During 2020, the Group granted share options to non-Australian domiciled Group employees. The terms of the 
2020 share options plan are the same as the 2017 share options plan unless otherwise stated below. The table 
below provides a summary of the details of options issued during 2020:

Numbers of 
options at 
beginning 
of year

Acquired 
by

Grant 
date share 
price

Exercise 
price of 

Earliest 
date of 

option Issue price

exercise Expiry date

 83,334  Employees

 83,334  Employees

 83,332  Employees

$3.09

$3.09

$3.09

$4.04

$4.04

$4.04

$0.00 13/03/2024 13/03/2025

$0.00 13/03/2025 13/03/2026

$0.00 13/03/2026 13/03/2027

 250,000 

Options 
forfeited 
during  
the year

Options 
exercised 
during  
the year

Number of 
options at 
year end

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 - 

 83,334 

 83,334 

 83,332 

 250,000 

The weighted average value of the 2020 share options 
at the time of grant was $0.85.

•  Expected life of option is the maximum term up to 

last day of the exercise window

The fair value of the share options was calculated 
using a Monte-Carlo model, adjusted for expectations 
of forfeiture due to employee departures. The 
assumptions used in calculating the fair value are 
shown below and are common to all tranches of share 
options, unless otherwise stated:

•  Performance hurdle of 8% per annum increase in 

total shareholder return.

•  Risk-free rate 0.67%.

•  Expected volatility of 42.78%. 

•  Forfeiture assumptions for the options granted to 
employees are that 25% and 30% of share options 
are forfeited for tranches 2 and 3 respectively.

2021 share options
During 2021, the Group granted share options to non-
Australian domiciled Group employees. The terms of 
the 2021 share options plan are the same as the 2020 
share options plan unless otherwise stated below. 
The table below provides a summary of the details of 
options issued during 2021:

Numbers of 
options at 
beginning 
of year

Acquired 
by

Grant 
date share 
price

Exercise 
price of 

Earliest 
date of 

option Issue price

exercise Expiry date

 125,000  Employees

 125,000  Employees

$4.40

$4.40

$4.34

$4.34

$0.00 10/03/2025 10/03/2026

$0.00 10/03/2026 10/03/2027

 250,000 

Options 
forfeited 
during  
the year

Options 
exercised 
during  
the year

Number of 
options at 
year end

 - 

 - 

 - 

 - 

 - 

 - 

 125,000 

 125,000 

 250,000 

The weighted average value of the share options at the 
time of grant was $1.48.

The fair value of the share options was calculated 
using a Monte-Carlo model, adjusted for expectations 
of forfeiture due to employee departures. The 
assumptions used in calculating the fair value are 
shown below and are common to all tranches of share 
options, unless otherwise stated:

•  Performance hurdle of 8% per annum increase in 

total shareholder return.

•  Risk-free rate 0.67%.

•  Expected volatility of 42.78%, based on historical 

MAF share price volatility over the expected term of 
the plan.

•  Expected life of option is the maximum term up to 

last day of the exercise window.

•  Forfeiture assumptions for the options granted 
to employees are that 20%, 25% and 30% of 
share options are forfeited for tranches 1, 2 and 3 
respectively. 

132

133

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 

Share based payments (continued)

31.2  Share rights

Share rights awarded include those granted to staff on 
commencement of employment, until 2018 as part of the 
bonus incentive scheme and from 2022 as promotion 
and performance awards, with the vesting subject to 
certain conditions including continuous employment. 
The value of these grants are amortised over the vesting 
period. The value of the grant has been determined by 
reference to the trading in the Company’s shares. For 
the bonus awards, the amortising period commences 
from the date employees first had an expectation of 
receiving an equity component to their bonus incentive 
scheme. Determination of this date required a degree 
of judgement.

Share rights granted as sign-on incentive
The Company has periodically granted share rights to 
senior employees commencing employment with the 
Group. The share rights are priced with reference to 
the trading price of the Company’s shares at the time 
the offer of employment is made. Vesting is subject to 
continuous employment, with terms varying on a case 
by case basis. Amortisation of the expense commences 
on the day the employees start their employment. 

Share rights granted as bonus, performance 
or promotion awards
Until 2018, share rights were granted to employees in 
connection with their annual bonus incentive scheme 
which entitles the employees to ordinary shares in 
the Company in the future for no payment. The share 
rights vest over a prescribed vesting period, and 
are conditional on continuous employment, unless 
otherwise determined by the Board. Bonus incentive 
scheme share rights were fully vested by the end of the 
first quarter of 2023.

From 2022, promotion and performance based awards 
were issued to selected employees in the form of share 
rights to better align their interests with shareholders. 
The number of share rights granted was determined 
by dividing the face value of the performance or 
promotion based equity opportunity by the 5-day 
volume-weighted average price (VWAP) up to and 
including the grant date, rounded to the nearest 
number. Rights granted are subject to a vesting 
period of three years and a service condition, unless 
otherwise determined by the Board. The amortising 
period has been assessed to commence at the grant 
date of the right.

The table below sets out the movement in share rights during the year:

Balance at the beginning of the year

Granted during the year

Forfeited during the year

Vested during the year

Balance at the end of the year

Number of share rights

Grant date fair value 
$’000

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

 341,964 

 343,699 

 (86,843)

 (165,341)

 433,479 

 971,164 

 179,784 

 (5,474)

 (803,510)

 341,964 

 3,684 

 1,536 

 (440)

 1,007 

 5,787 

 4,625 

 2,735 

 (64)

 (3,612)

 3,684 

31.3  Restricted shares

Restricted shares – staff bonus incentive 
scheme
From 2019, as part of the annual staff bonus incentive 
scheme, the share-based component of short-term 
incentive remuneration was delivered in the form 
of restricted shares, issued to employees as part of 
their annual bonus awards. The restricted shares 

were priced at the 5-day VWAP of the shares in the 
Company at the end of the respective financial years. 
The restricted shares vest over a prescribed vesting 
period of 10 months to 34 months, and are conditional 
on continuous employment, unless otherwise 
determined by the Board. The amortisation period has 
been assessed to commence from the date employees 
first had an expectation of receiving an equity 
component to their annual bonus (being 1 January of 
each financial year).

134

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 

Share based payments (continued)

31.3  Restricted shares (continued)

Number of restricted shares

Grant date fair value 
$’000

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Balance at the beginning of the year

 2,857,404 

 2,634,796 

Granted during the year

Forfeited during the year

Vested during the year

 1,925,130 

 1,310,986 

 (129,666)

 (42,696)

 (1,482,865)

 (1,045,682)

Balance at the end of the year

 3,170,003 

 2,857,404 

 18,017 

 8,298 

 (690)

 (8,666)

 16,959 

 12,763 

 10,675 

 (305)

 (5,116)

 18,017 

Restricted shares – 2023 staff bonus 
incentive scheme
As at 31 December 2023, the Group has estimated 
short-term incentive component of the expected 2023 
annual bonuses, including an estimate of the amount 
of bonuses to be paid in cash and the share-based 
component, which is anticipated to be delivered in the 
form of restricted shares. The profit or loss impact 
(after tax) of the estimated equity component for 
services received for the year ended 31 December 
2023 was $2.0 million (2022: $2.4 million). The 
estimate of the cost of the restricted share awards 
could change up until the grant date is achieved.

31.4  Loan funded share plan (LFSP)

As part of the long-term incentive plan, from 2020 
the Group issued retention LFSP awards for certain 
employees that enabled the employees to invest 
in shares of the Company in order to more closely 
align their long-term interests with shareholders 
of the Group. During 2022, the Group issued a new 
Long-term Incentive (LTI) LFSP award. The Group 
provides an interest free and limited recourse loan to 
the employees which is used to acquire shares in the 
Company. The loans to employees are secured on the 
shares which are not transferable until the loan is fully 
paid. LFSP shares rank equally in all respects with all 
shareholder entitlements for the same class of shares 
including dividends.

The total expense recorded for the year in respect of the retention LFSP awards and LTI LFSP awards was $0.44 
million (2022: $4.0 million). 

Number of loan funded shares

Grant date fair value 
$’000

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Balance at the beginning of the year

 10,474,440 

 7,915,184 

Granted during the year

Forfeited during the year

Vested during the year

 3,420,530 

 2,668,356 

 (493,422)

 (109,100)

 - 

 - 

Balance at the end of the year

 13,401,548 

 10,474,440 

 56,219 

 15,167 

 (2,865)

 - 

 68,521 

 37,253 

 19,417 

 (451)

 - 

 56,219 

134

135

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 

Share based payments (continued)

31.4  Loan funded share plan (LFSP) (continued)

The shares issued under the retention LFSP awards have been treated as ‘in substance options’ and have been 
valued using a Monte-Carlo pricing methodology with key inputs shown below.

Retention LFSP awards

 Tranche 1 

 Tranche 2 

 Tranche 1 

 Tranche 2 

 Tranche 3 

2021 Grant

2020 Grant

Vesting period

Share price at grant date

Expected volatility1

Risk-free rate

Fair value per security

Performance hurdle 
(total shareholder return)

Forfeiture assumptions

4 years

$4.34

42.78%

0.67%

$1.45

8% p.a.

10%

5 years

$4.34

42.78%

0.67%

$1.51

8% p.a.

13%

4 years

$4.04

42.78%

0.67%

$0.75

8% p.a.

20%

5 years

$4.04

42.78%

0.67%

$0.86

8% p.a.

25%

6 years

$4.04

42.78%

0.67%

$0.94

8% p.a.

30%

LTI LFSP awards
From 2022, the Group issued LTI LFSP awards for 
senior employees including KMP. The LTI LFSP awards 
are granted to ensure alignment with the creation of 
ongoing shareholder value. Shares granted are subject 
to a vesting period of five years, a service condition, 
unless otherwise determined by the Board, and an 

EPS performance condition based on average growth 
in Underlying EPS over the vesting period. The shares 
issued under the LTI LFSP awards have been treated 
as ‘in substance options’ and have been valued using 
a Black-Scholes pricing methodology with key inputs 
shown below. 

LTI LFSP awards

Vesting period

Share price at grant date

Expected volatility1

Risk-free rate

Fair value per security

Performance hurdle (total shareholder return)

Forfeiture assumptions

 2022 LTI LFSP 

 2021 LTI LFSP 

5 years

$4.43

55.22%

3.07%

$1.26

5 years

$7.91

40.71%

2.73%

$0.02

7.5% – 12.0%

7.5% – 12.0%

20.0%

20.0%

1.  Based on historical MAF share price volatility over the expected term of the plan.

2023 LTI LFSP awards
Due to a change implemented by management regarding the terms and conditions of LTI awards, there are no 
planned LFSPs to be granted for the service period commencing 1 January 2023.

136

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)31 

Share based payments (continued)

31.5  Share appreciation rights plan
From 2022, Share Appreciation Rights (SAR) were granted under the LTI plan to senior executives, Managing 
Directors and equivalent. A SAR is an ‘in substance option’ which gives the holder a right to shares in the future 
equivalent to the uplift in the share price between the grant date and vesting date. 

Number of share appreciation rights

Grant date fair value 
$’000

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Balance at the beginning of the year

Granted during the year

Forfeited during the year

Vested during the year

 1,723,133 

 2,874,004 

 (312,113)

 - 

 - 

 1,757,411 

 (34,278)

 - 

 13,612 

 12,773 

 (1,683)

 - 

Balance at the end of the year

 4,285,024 

 1,723,133 

 24,702 

 - 

 13,883 

 (271)

 - 

 13,612 

The SARs issued under the LTI plan have been valued using a Black-Scholes pricing methodology with key inputs 
shown below. The resulting value is amortised over the vesting period on a probability adjusted basis. 

LTI SAR awards

Vesting period

Share price at grant date

Expected volatility1

Risk-free rate

Dividend yield

Forfeiture assumptions – Service condition

1.  Based on historical MAF share price volatility over the expected term of the plan.

 2022 LTI SAR 

 2021 LTI SAR 

5 years

$4.43

55.09%

3.48%

3.54%

20.0%

5 years

$7.91

40.71%

2.73%

2.15%

20.0%

2023 LTI SAR awards
Due to a change implemented by management 
regarding the terms and conditions of LTI awards, 
there are no planned SARs to be granted for the 
service period commencing 1 January 2023.

31.6  Salary sacrifice share plan

From 2020, all permanent full and part-time employees 
of the Group were invited to participate in the annual 

salary sacrifice share offer which allowed employees to 
receive up to $5,000 worth of shares in the Company 
by sacrificing an equivalent amount of their pre-tax 
salary or cash bonus award. 34,859 shares were issued 
under the 2023 arrangement, priced at $4.434, being 
the 5-day VWAP of the Company’s shares on grant 
date (2022: 25,576 shares at $7.908). The shares are 
restricted from being sold by employees until at least 1 
July of the year following issue or when the participant 
is no longer employed by the Group.

Number of salary sacrifice shares

Grant date fair value 
$’000

31 Dec 2023

31 Dec 2022

31 Dec 2023

31 Dec 2022

Balance at the beginning of the year

Granted during the year

Vested during the year

Balance at the end of the year

 21,967 

 34,859 

 (28,735)

 28,091 

 16,143 

 25,576 

 (19,752)

 21,967 

 172 

152

 (204)

 120 

 69 

 202 

 (99)

 172 

136

137

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)32  Key management personnel compensation

The aggregate compensation made to both Executive and Non-Executive Directors and other members of Key 
Management Personnel (KMP) of the Company and the Group is set out below. There were 12 KMP in 2023  
(2022: 11 KMP).

Short-term benefits

Share-based payments

Annual leave

Long service leave

Total key management personnel compensation

33  Related party transactions

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 5,487 

1,370

 (271)

 (80)

6,506

 6,319 

 3,099 

 129 

 94 

 9,641 

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, 
have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group 
and other related parties are disclosed below.

33.1  Loans to related parties

Loans to employees

The Group has provided interest-free loans to certain 
senior employees that are used for investment 
purposes, primarily for investment in funds managed 
by the Group. The investments purchased have been 
designated as restricted and are unable to be sold 
without the approval of the Group. 51% of distributions 
received on the investments are allocated against the 
loan balance. The loans are repayable over a maximum 
term of five years.

33.2  Transactions with Key 

Management Personnel

In 2019 Mr Pridham and Mr Biggins entered into 
property management service arrangements with 
the Group on the same terms offered to third-party 
investors in a property managed by the Group. Total 
management fees payable by Mr Pridham and Mr 
Biggins for 2023 amounted to $51,872 and $11,598 
respectively (2022: $69,352 and $15,506 respectively).

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 2,383 

 2,211 

33.3  Transactions with funds managed 

by the Group

The Group is involved in the management of various 
funds, through its role as a trustee, manager, financial 
advisor and underwriter, and charges fees for doing 
so. The Group also invests in some of the funds which 
it manages.

33.4  Transactions with associates

Transactions between the Group and its associates 
principally arise from KMP transactions and 
investments in the associate.

The amounts below for KMP are recorded at the 
closing price for the relevant investment in accordance 
with AASB 124 Related Party Disclosures and have not 
been adjusted for subsequent valuation changes.

138

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)33  Related party transactions (continued) 

33.4  Transactions with associates (continued)

Related party investments in associates

KMP
31 Dec 2023 
$’000

Group 
31 Dec 2023 
$’000

KMP  
31 Dec 2022 
$’000

Group 
31 Dec 2022 
$’000

 - 

 - 

 7,162 

 5,417 

 12,579 

 - 

 - 

 49,295 

 1,476 

 50,771 

 - 

 - 

7,757

7,808

15,565

 22,415 

 8,274 

 57,086 

 3,811 

 91,586 

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

12,935

2,838

4,335

 20,108 

6,884

1,206

 43,925 

 52,015 

BE ES I LLC

BE OLD I LLC

Redcape Hotel Group

Other associates

Related party fees from associates

Trustee and management fees

Transaction fees

Performance fees

Receivables from associates

Current

Accounts receivable and fees receivable from associates

 28,609 

30,579

34  Acquisitions and disposals of subsidiaries

34.1  Business acquisitions

On 1 May 2023, the Group acquired 100% of the issued 
share capital of Blue Elephant Capital Management 
LLC, Blue Elephant Partner LLC and Blue Elephant 
Financing LLC (collectively Blue Elephant), obtaining 
control of Blue Elephant. The purchase consideration 
was for USD $8.7 million (AUD $13.1 million), being USD 
$5.0 million (AUD $7.6 million) in cash and USD $3.7 
million (AUD $5.6 million) in contingent consideration 
at fair value on the date of acquisition. Blue Elephant 
is a New York based, SEC-registered specialty credit 
asset manager.

Blue Elephant qualifies as a business as defined in 
AASB 3 Business Combinations. 

The initial accounting for the acquisition of Blue 
Elephant has only been provisionally determined at the 
end of the reporting period. The Group retrospectively 
adjusts the provisional amounts recognised and 

also recognises additional assets or liabilities during 
the measurement period, based on new information 
obtained about the facts and circumstances that 
existed at the acquisition-date. The measurement 
period ends on either the earlier of (i) 12 months from 
the date of the acquisition or (ii) when the Group 
receives all the information possible to determine 
fair value.

Since the last reporting period, the Group remeasured 
the fair value of the acquired net assets in Blue 
Elephant. The below remeasurements were made 
which subsequently resulted in a $0.9 million increase 
to goodwill. 

•  decrease to receivables of $0.1 million;

•  decrease to investments of $0.03 million;

•  decrease to right-of-use assets of $0.5 million; and

• 

increase to trade and other payables of $0.1 million.

138

139

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)34  Acquisitions and disposals of subsidiaries (continued)

34.1  Business acquisitions (continued)

The table below represents the aggregated details of the businesses acquired during the year. The purchase price 
allocation for the current year’s business acquisitions is provisional as at 31 December 2023.

Fair value of net assets acquired

Cash and cash equivalents

Receivables

Right-of-use assets

Trade and other payables

Total fair value of net liabilities acquired

Consideration

Cash

Contingent consideration

Total consideration transferred

Goodwill recognised on acquisition

Net cash outflow arising on acquisition

Cash consideration

Less: cash and cash equivalent balances acquired

Total net cash outflow arising on acquisition

Goodwill
The goodwill of $13.9 million arising from the 
acquisition consists of:

• 

the experience and employment of key 
management; and

•  assembled workforce of existing employees.

None of the goodwill is expected to be deductible for 
income tax purposes.

Acquisition related costs
Business acquisition costs of $1.3 million comprising 
legal fees and due diligence costs were included 
in the Statement of profit or loss and other 
comprehensive income.

Total
$’000

 1,076 

 735 

 43 

 (2,584)

 (730)

 7,572 

 5,575 

 13,147 

 13,877 

 7,572 

 (1,076)

 6,496 

Contribution to the Group’s results
Blue Elephant contributed $2.5 million of revenue and 
$4.2 million loss to the Group’s profit before tax for 
the period between the date of acquisition and the 
reporting date.

If the acquisition of Blue Elephant had been completed 
on 1 January 2023, Group revenue contribution for the 
year ended 31 December 2023 would have been $3.7 
million and Group profit before tax contribution would 
have been $1.8 million loss. The Directors of the Group 
consider these ‘pro-forma’ numbers to represent 
an approximate measure of the performance of the 
combined Group for the year ended 31 December 2023 
and to provide a reference point for comparison in 
future years.

140

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)34  Acquisitions and disposals of subsidiaries (continued)

34.2  Subsidiaries

The table below presents the Group’s notable subsidiaries that form the main composition of the Group as at 31 
December 2023.

Proportion of ownership interest and  
voting power held by the Group

Name of subsidiary

Principal activity

Place of incorporation 
and operation

31 Dec 2023

31 Dec 2022

Eastern Credit Management Pty Ltd 

Asset Management

Australia

MA Asset Management Ltd

Asset Management

Australia

MA Hotel Management Pty Ltd

Asset Management

Australia

MA Investment Management Pty Ltd 

Asset Management

Australia

MA Visa Fund Manager Pty Ltd

Asset Management

Australia

MAAM Holdings Pty Ltd

Asset Management

Australia

MAAM RE Limited

Asset Management

Australia

Redcape Hotel Group Management Ltd 

Asset Management

Australia

RetPro Management Pty Ltd

Asset Management

Australia

MA Credit Investments Pty Ltd

Asset Management

Australia

MA Credit Portfolio Investments Pty Ltd 

Asset Management

Australia

MA Master Credit Trust

Asset Management

Australia

MA Wholesale Global Private Credit Fund Asset Management

USA

Finsure Finance & Insurance Pty Ltd

Lending & Technology

Australia

Beagle Finance Pty Ltd

Lending & Technology

Australia

MA Money Financial Services Pty Ltd

Lending & Technology

Australia

MA Moelis Australia Advisory Pty Ltd

CA&E

MA Moelis Australia Securities Pty Ltd

CA&E

Australia

Australia

MAFG Operations Pty Ltd

Administration Entity

Australia

MAFG Finance Pty Ltd

Administration Entity

Australia

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

-

100%

100%

100%

100%

100%

100%

100%

The subsidiaries included in the list above are identified 
on the basis of their ongoing contribution to the 
Group’s assets and operating profit. Additionally, this 
includes the employing entities, entities that are key 
providers of funding to other subsidiaries and other key 
operating entities.

All notable subsidiaries have a 31 December 
reporting date.

Non-controlling interest
Details of non-controlling interests are covered in 
note 30.

140

141

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)34  Acquisitions and disposals of subsidiaries (continued)

Accounting policy

Basis of consolidation
The Financial Report reflects the financial performance 
and financial position of the Company and its 
subsidiaries. Subsidiaries are all entities (including 
structured entities) which the Group controls. Control 
is achieved when the Group:
•  has power over the investee;
• 

is exposed, or has rights, to variable returns from its 
involvement with the investee; and

•  has the ability to use its power to affect its returns.

The determination of control is based on current 
facts and circumstances and is continually assessed. 
The Group has power over an entity when it has 
substantive rights that provides it with the ability to 
direct the entity’s relevant activities, being those that 
significantly affect the entity’s returns. If the Group 
determines that it has power over an entity, then it 
evaluates its exposure, or rights, to variable returns by 
considering the magnitude and variability associated 
with its economic interests.

Controlled entities are consolidated from the date on 
which control is transferred to the Group and ceases 
to be consolidated from the date control is transferred 
out of the Group. The effects of all transactions 
between subsidiaries in the Group are eliminated in 
full. Non-controlling interests (NCI) represent the share 
in the net assets of subsidiaries attributable to equity 
interests not owned directly or indirectly by the Group.

The Company reviews its investment in subsidiaries 
for indicators of impairment at each reporting period. 
Where subsidiaries had indicators of impairment, 
the subsidiaries’ carrying value was compared to its 
recoverable value which is determined as the higher of 
value-in-use and fair value less cost to sell.

Business combinations
Business combinations are accounted for using the 
acquisition method. The consideration exchanged is 
measured as the aggregate of the acquisition-date fair 
values of assets transferred, equity instruments issued 
and liabilities incurred. Acquisition-related costs are 
recognised directly in the Statement of profit or loss 
and other comprehensive income.

At the acquisition date, the identifiable assets acquired 
and the liabilities assumed are recognised at their fair 
value at the date of acquisition. The Group elects, on a 
transaction-by-transaction basis, to initially measure 
NCI either at fair value or at the NCI’s proportionate 

share of the fair values of the identifiable assets 
and liabilities.

Goodwill is measured as the excess of the sum of the 
consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value 
of the acquirer’s previously held equity interests in the 
acquiree (if any) over the net of the acquisition-date 
amounts of the identifiable assets acquired and the 
liabilities assumed. If the consideration is less than 
the Group’s share of the fair value of the identifiable 
net assets of the business acquired and is recognised 
in investment income, but only after a reassessment 
of the identification and measurement of the net 
assets acquired.

When the consideration transferred by the Group in 
a business combination includes assets or liabilities 
resulting from a contingent consideration arrangement, 
the contingent consideration is measured at its 
acquisition-date fair value and included as part of the 
consideration transferred in a business combination. 
Changes in fair value of the contingent consideration 
that qualify as measurement period adjustments 
are adjusted retrospectively, with corresponding 
adjustments against goodwill. Measurement period 
adjustments are adjustments that arise from additional 
information obtained during the ‘measurement period’ 
(which cannot exceed one year from the acquisition 
date) about facts and circumstances that existed at the 
acquisition date.

The subsequent accounting for changes in the fair 
value of the contingent consideration that do not 
qualify as measurement period adjustments depends 
on how the contingent consideration is classified. 
Contingent consideration that is classified as equity 
is not remeasured at subsequent reporting dates and 
its subsequent settlement is accounted for within 
equity. Contingent consideration that is classified as 
an asset or a liability is remeasured at subsequent 
reporting dates in accordance with AASB 9, or AASB 
137 Provisions, Contingent Liabilities and Contingent 
Assets, as appropriate, with the corresponding gain or 
loss being recognised in profit or loss.

When a business combination is achieved in stages, the 
Group’s previously held equity interests in the acquiree 
is remeasured to its acquisition-date fair value and the 
resulting gain or loss, if any, is recognised in profit or 
loss. Amounts arising from interests in the acquiree 
prior to the acquisition date that have previously 
been recognised in other comprehensive income are 
reclassified to profit or loss where such treatment 
would be appropriate if that interest were disposed of.

142

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)34  Acquisitions and disposals of subsidiaries (continued)

Accounting policy (continued)

If the initial accounting for a business combination 
is incomplete by the end of the reporting period in 
which the combination occurs, the Group reports 
provisional amounts for the items which the accounting 
is incomplete. Those provisional amounts are adjusted 
during the measurement period (see above), or 
additional assets or liabilities are recognised, to reflect 
new information obtained about facts or circumstances 
that existed at the acquisition date that, if known, would 
have affected the amounts recognised at that date.

Consolidated managed fund investments
The Group regularly provides seed and growth capital 
to funds managed by the Group. At each reporting 
period investments in funds managed by the Group 
are assessed for control. Determining whether the 
Group has control over managed fund investments 
requires the use of judgement and is an assessment of 
the Group’s power over the activities of the funds and 
exposure to significant variability in returns from the 
funds. Managed fund investments where such interests 
are interests in controlled entities are consolidated by 
the Group. Where it is determined that control does not 
exist, the Group’s investments are recognised as either 
associates or other financial assets in the Statement of 
financial position. 

35  Parent entity disclosures

As at, and throughout, the year ended 31 December 2023 the parent entity of the Group was MA Financial 
Group Limited.

Results of the parent company

Profit for the year

Total comprehensive income for the year

Financial position of the parent entity

Current assets

Non-current assets

Total assets

Current liabilities

Total liabilities

Net assets

Total equity of the parent entity comprising of:

Contributed equity

Reserves

Retained earnings

Total equity

31 Dec 2023
Company
$’000

31 Dec 2022
Company
$’000

 66,259 

 66,259 

 195,912 

 189,951 

 385,863 

 - 

 - 

 46,499 

 46,499 

 160,938 

 190,097 

 351,035 

 115 

 115 

 385,863 

 350,920 

 278,737 

 36,554 

 70,572 

 385,863 

 275,087 

 36,348 

 39,485 

 350,920 

The parent entity had no contingent liabilities, contractual commitments or guarantees with third parties as at 31 
December 2023 (2022: nil) other than those already disclosed in the financial statements.

143

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)36  Deed of cross guarantee

The Company and certain wholly owned subsidiaries 
listed below (the Closed Group) have entered into 
a Deed of Cross Guarantee (Deed) effective 21 
December 2022.

Pursuant to ASIC Corporations (Wholly-owned 
Companies) Instrument 2016/785, the wholly-
owned subsidiaries listed below are relieved from 
the Corporations Act 2001 (Cth) requirements for 
preparation, audit and lodgement of financial reports, 
and Directors’ reports.

The subsidiaries to the Deed are:

•  Beagle Finance Pty Ltd

•  Eastern Credit Management Pty Ltd

•  Finsure Finance & Insurance Pty Ltd

•  Finsure Holding Pty Ltd

•  MAAM Holdings Pty Ltd

•  MAFG Operations Pty Ltd

Set out below is the Statement of profit or loss and other comprehensive income, Statement of financial position 
and a summary of movements in accumulated losses of the entities party to a Deed of Cross Guarantee.

Statement of profit or loss and other comprehensive income

31 Dec 2023
$’000

31 Dec 2022
$’000

Fee and commission income

Fee and commission expense

Net fee and commission income

Investment income

Other income

Total income

Employee expenses

Marketing and business development

Information, technology and data

Depreciation and amortisation

Finance costs

Credit loss allowance

Other expenses

Total expenses

Profit/(loss) before tax

Income tax benefit

Profit/(loss) after income tax

Other comprehensive loss, net of income tax

Items that will not be classified subsequently to profit or loss:

Fair value benefit/(loss) on investments in equity instruments designated at FVTOCI

Total other comprehensive income/(loss)

Total comprehensive income/(loss)

 565,067 

 (507,652)

57,415

 186,706 

 54,341 

 298,462 

 143,031 

 11,167 

 6,476 

 9,471 

 5,324 

 (25)

 14,635 

 190,079 

 108,383 

 (16,600)

 124,983 

 88 

 88 

 88 

 461,413 

 (417,575)

43,838

 75,638 

 58,735 

 178,211 

 134,710 

 9,091 

 6,878 

 13,456 

 3,390 

 (255)

 15,120 

 182,390 

 (4,179)

(1,236)

 (2,943)

 (93)

 (93)

 (93)

 125,071 

 (3,036)

144

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)36  Deed of cross guarantee (continued)

Statement of financial position

Assets

Cash and cash equivalents

Receivables

Loans receivable

Other financial assets

Contract assets

Property, plant and equipment

Other assets

Restricted cash

Right-of-use assets

Investments in subsidiaries, associates and joint ventures

Intangible assets

Goodwill

Total assets

Liabilities

Trade and other payables

Borrowings

Contract liabilities

Lease liabilities

Provisions

Deferred tax liabilities

Total liabilities

Net assets

Equity 

Contributed equity

Reserves

Accumulated losses

Total equity

Summary of movements in accumulated losses

Accumulated losses at beginning of the financial year

Profit/(loss) for the year

Dividends paid

Accumulated losses at end of the financial year

31 Dec 2023
$’000

31 Dec 2022
$’000

 14,784 

 19,793 

 3,392 

 2,044 

 67,819 

 43,106 

 5,610 

 65,859 

 705,286 

 607,233 

 3,811 

 5,412 

 700 

 65,179 

 178,007 

 53,572 

 98,829 

 5,223 

 4,015 

 700 

 60,881 

 89,826 

 45,638 

 98,829 

 1,150,809 

 1,094,739 

 33,509 

 25,845 

 661,157 

 70,654 

 38,001 

 14,206 

 843,372 

 307,437 

 278,737 

 39,526 

 (10,826)

 307,437 

 156,695 

 - 

 571,363 

 63,902 

 41,858 

 11,201 

 845,019 

 249,720 

 275,087 

 39,231 

 (64,598)

 249,720 

31 Dec 2023
Consolidated
$’000

31 Dec 2022
Consolidated
$’000

 (64,598)

 124,983 

 (71,211)

 (10,826)

 (61,655)

 (2,943)

 - 

 (64,598)

145

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)37 

Structured entities

A structured entity is an entity that has been designed 
such that voting or similar rights are not the dominant 
factor in determining who controls the entity and 
the relevant activities are directed by means of 
contractual arrangements.

The Group engages with structured entities for 
securitisation, asset-backed financing and to invest its 
own capital for the purpose of seeding fund vehicles to 
develop a performance track record prior to external 
investment being received.

The Group assesses at inception and at each 
reporting date, whether the structured entity should 
be consolidated based on the Group’s consolidation 
accounting policy (refer to note 34). Structured entities 
are classified as subsidiaries and consolidated when 
control exists. 

Consolidated structured entities
The Group considers its wholly owned entities that 
originate residential mortgages via notes in mortgage 
warehouse trusts to be structured entities. These trusts 
are special purpose vehicles where third-party funders 
provide limited-recourse financing to the trusts. The 
facility arrangement partially transfers the risk of credit 
losses on loan portfolios to the capital providers of the 
trusts. The Group’s exposure to losses is limited to its 
investment in the warehouse trusts and its rights to 
current and future residual income from its trusts.

Unconsolidated structured entities
The Group has an interest in a structured entity when it 
has a contractual or non-contractual involvement that 
exposes it to variable returns from the performance 
of the structured entity. The Group’s interest includes 
investment income from it’s interest and fees earned for 
managing the assets within these structured entities.

The following table presents, by asset class, the carrying value and maximum exposure to loss (before the benefit 
of collateral and credit enhancements) of the Group’s interests in unconsolidated structured entities:

Real estate 
$’000

Hospitality 
$’000

Credit 
$’000

Equities 
$’000

Total 
$’000

31 December 2023

Carrying value of assets

Financial assets held at FVTOCI

Financial assets held at FVTPL

Total carrying value of assets

Maximum exposure to loss

Financial assets held at FVTOCI

Financial assets held at FVTPL

Total maximum exposure to loss

31 December 2022

Carrying value of assets

Financial assets held at FVTOCI

Financial assets held at FVTPL

Total carrying value of assets

Maximum exposure to loss

Financial assets held at FVTOCI

Financial assets held at FVTPL

Total maximum exposure to loss

 3,053 

 - 

 3,053 

 3,053 

 - 

 3,053 

 837 

 - 

 837 

 837 

 - 

 837 

 3,040 

 - 

 3,040 

 3,040 

 - 

 3,040 

 3,040 

 - 

 3,040 

 3,040 

 - 

 3,040 

 4,201 

 7,588 

 11,789 

 4,201 

 7,588 

 11,789 

 3,754 

 14,985 

 18,739 

 3,754 

 14,985 

 18,739 

 6,850 

 619 

 7,469 

 6,850 

 619 

 7,469 

 5,453 

 640 

 6,093 

 5,453 

 640 

 6,093 

 17,144 

 8,207 

 25,351 

 17,144 

 8,207 

 25,351 

 13,084 

 15,625 

 28,709 

 13,084 

 15,625 

 28,709 

Unless otherwise specified, the Group’s maximum 
exposure to loss is the total of its on-balance sheet 
positions at reporting date. There are no off-balance 
sheet arrangements which would expose the Group 
to potential losses in respect of unconsolidated 
structured entities.

During the year, the Group earned management, 
performance, transaction and upfront fee income of 
$11.0 million (2022: $9.9 million) and gains or losses 
from revaluing financial assets held at FVTPL from 
interests held of $2.0 million (2022: $1.4 million).

146

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)38  Auditor’s remuneration

Audit and review services

Auditors of the Group

Audit and review of financial statements – Group

Audit and review of financial statements – controlled entities

Total audit and review services – auditors of the Group

Other auditors

Audit and review of financial statements – controlled entities

Total audit and review services

Assurance services

Auditors of the Group

Regulatory assurance services

Total assurance services

Other services

Auditors of the Group

Advisory services

Taxation

Other services in relation to the Group

Total other services

Total auditor remuneration

39  Commitments

At 31 December 2023, the Group had undrawn loan 
commitments of $372.1 million (2022: $144.4 million). 
Subsequent to 31 December 2023, $30.1 million 
of these commitments were either cancelled or 
drawn upon.

At 31 December 2023, the Group has committed to a 
co-investment in class B units in the MCTs which are 
consolidated entities of the Group. At 31 December 
2023, $112.7 million (2022: $56.9 million) has been 
invested by the Group in the MCTs. Refer to note 23(b) 
for further information.

31 Dec 2023
Consolidated
$’000

31 Dec 2022 
Consolidated
$’000

 928 

 538 

 1,466 

 63 

 1,529 

 198 

 198 

 169 

 134 

 10 

 313 

 629 

 343 

 972 

 23 

 995 

 101 

 101 

 107 

 619 

 65 

 791 

 2,040 

 1,887 

40  Events after the  

reporting date

There were no material events subsequent to 31 
December 2023 up until the authorisation of the 
financial statements for issue, that have not been 
disclosed elsewhere in the financial statements.

146

147

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Notes to the financial statements (continued)Directors’ declaration

In accordance with a resolution of the Directors of MA 
Financial Group Limited, we declare that, in the opinion 
of the Directors:

(c) 

(a) 

(b) 

 there are reasonable grounds to believe that the 
Company will be able to pay its debts as and when 
they become due and payable; and

 the financial statements and notes of MA Financial 
Group and its controlled entities (Group) are in 
accordance with the Corporations Act 2001 (Cth) 
including: 

(i)  complying with the Australian Accounting  

Standards, and

(ii)  giving a true and fair view of the Company’s and  
the consolidated Group’s financial positions as  
at 31 December 2023 and of its performance  
for the financial year ended on that date;

On behalf of the Board

the financial statements and notes of the 
Group also comply with International Financial 
Reporting Standards as issued by the International 
Accounting Standards Board, which is disclosed in 
note 1(a);

(d)  this declaration has been made after receiving 
declarations from the joint Chief Executive 
Officers and Chief Financial Officer in accordance 
with section 295A of the Corporations Act 2001 
and are recommended by the ASX Corporate 
Governance Principles and Recommendations.

Jeffrey Browne
Independent Chair and Non-Executive Director
Sydney
22 February 2024

Julian Biggins
Director and Joint Chief Executive Officer
Sydney
22 February 2024

148

MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023 
 
 
 
 
 
Independent auditor’s report

148

149

Independent Auditor’s Report To the shareholders of MA Financial Group Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of MA Financial Group Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including:  •giving a true and fair view of theGroup’s financial position as at 31December 2023 and of its financialperformance for the year ended on thatdate; and•complying with Australian AccountingStandards and the CorporationsRegulations 2001.The Financial Report comprises: •Statement of financial position as at 31 December2023;•Statement of profit or loss and other comprehensiveincome, statement of changes in equity, andstatement of cash flows for the year then ended;•Notes, including material accounting policies; and•Directors’ Declaration.The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.  We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Independent auditor’s report (continued)

150

                                 Key Audit Matters The Key Audit Matters we identified are: • Advisory success fees revenue recognition; and • Trail Commission Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period.  These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Advisory success fees revenue recognition ($37.3m) Refer to Note 4 to the Financial Report The key audit matter How the matter was addressed in our audit Advisory success fees revenue recognition is a key audit matter due to the:  • significance of this revenue to the Group’s results; and • the judgement required with respect to assessing the timing of revenue recognition, specifically when the Group satisfied its performance obligation as stipulated by the conditions of the underlying contracts, which may vary.  In assessing this key audit matter, we involved senior audit team members who understand the Group’s business, industry and the macroeconomic environment in which it operates. Our procedures included: • assessing the Group's revenue recognition policy against AASB 15 Revenue from Contracts with Customers requirements;  • obtaining an understanding of processes, systems and controls for advisory success fee revenue. We also tested key controls such as the manual review and approval by management of key revenue calculations and customer invoices;  • for a sample of transactions recognised on a non-accrual basis, checking recorded revenue to evidence of deal completion, customer invoices, bank statements and the relevant features of the underlying signed customer contracts;  • for a sample of transactions recognised on an accrual basis, checking: • the timing of fee revenue recorded against evidence of fulfilment of performance obligations, and signed customer contracts; • the accuracy of the fee when compared to rates contained in the contracts;  • evaluating deal income recognised in January 2024 to understand whether it was recognised in the appropriate reporting year; and • assessing the adequacy of disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard.       MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Independent auditor’s report (continued)

150

151

                                 Trail Commission contract assets ($705.3m) and contract liabilities ($661.2m) Refer to Note 16 to the Financial Report The key audit matter How the matter was addressed in our audit The Group recognises a contract asset using the expected value method representing the net present value of future trail commission receivable under AASB 15 Revenue from Contracts with Customers. The Group also recognised a corresponding trail commission payable under AASB 9 Financial Instruments as representation of the net present value of trail commission payments to brokers.  This is a key audit matter due to  • significance of the contract assets and contract liabilities on the Group’s balance sheet; and • the significant judgement applied to assess the Group’s estimation of the value of trail commissions receivable and payable. We focused on the key inputs and assumptions the Group applied in their Net Present Value (“NPV”) model, including: • discount rates, which are judgemental in nature and may vary between different underlying cohorts of trail commissions; • percentage of commissions paid to brokers; and • loan book run off rate assumptions, reflecting the expected loan attrition rate of the portfolio over time, which is subject to change. In assessing this key audit matter, we involved our valuation specialists in assessing management’s NPV model.   Our procedures included: • evaluating the Group’s processes and testing key controls such as the review and approval of assumptions used in the Group’s NPV model for estimating the value of the trail commissions receivable and payable; • assessing the completeness and accuracy of the loan data and commission percentage used in the Group’s NPV model by testing a sample of the data to external underlying documents such as lender commission statements and contracts with brokers; • assessing the appropriateness of the methodology adopted in the Group’s NPV model against accepted industry practice and the requirements of the accounting standards; • recalculating the trail commission receivable and payable; • assessing the key assumptions by: • independently developing discount rate ranges considered comparable using publicly available market data for comparable entities, adjusted by risk factors specific to the Group; • comparing the loan book run-off rate assumptions to contracted maturities in the relevant portfolio and then further challenging the run-off rate by comparing to historical internal information, available industry market data, and using our knowledge of the current economic environment; • evaluating the sensitivity of the NPV model calculations by considering reasonably possible changes to the discount rate and loan book run-off rate; and • assessing the adequacy of disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard.      MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Independent auditor’s report (continued)

152

                                 Other Information Other Information is financial and non-financial information in MA Financial Group Limited’s annual report which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information.  Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.  Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.  Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and  • to issue an Auditor’s Report that includes our opinion.  Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report.    MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Independent auditor’s report (continued)

152

153

Report on the Remuneration ReportOpinion In our opinion, the Remuneration Report of MA Financial Group Limited for the year ended 31 December 2023, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited sections 1 to 10 of the Remuneration Report included in the Directors’ report for the year ended 31 December 2023.  Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Shaun Kendrigan  Partner Sydney 22 February 2024 MA Financial Group | 2023 Annual ReportFor the year ended 31 December 2023Lunar New Year 
Lion Dance

Investor information

Dividend details
MA Financial Group Limited generally pays a dividend on its fully paid ordinary shares once a year following its full-
year financial results announcement.

The payment date for the dividend following the announcement of the 2023 results is 20 March 2024.

20 largest shareholders
The following information is correct as at 19 February 2024.

Registered holder

Moelis & Co International Holdings LLC

J P Morgan Nominees Australia Pty Limited

Magic TT Pty Ltd

Magic TT 2 Pty Ltd

MAFG Share Plan Pty Ltd

HSBC Custody Nominees (Australia) Limited

Citicorp Nominees Pty Limited

National Nominees Limited

MAFG Share Plan Pty Ltd

Touchard Pty Ltd

BNP Paribas Noms Pty Ltd

BNP Paribas Nominees Pty Ltd

UBS Nominees Pty Ltd

MAFG Share Plan Pty Ltd

Richard Germain and Nina Germain

Jill Adora Pty Ltd

Citicorp Nominees Pty Limited

HSBC Custody Nominees (Australia) Limited

BNPP Noms Pty Ltd Hub24 Custodial Serv Ltd

Netwealth Investments Limited

Distribution of shareholders

Number of ordinary  
shares held

% of ordinary 
shares

23,500,000

20,842,041

19,865,799

14,850,000

13,401,548

10,039,811

8,695,927

7,255,313

3,188,403

3,037,853

2,592,540

2,474,976

2,204,781

1,837,741

1,724,677

1,524,602

1,272,022

1,113,299

1,106,313

946,724

13.18%

11.69%

11.14%

8.33%

7.51%

5.63%

4.88%

4.07%

1.79%

1.70%

1.45%

1.39%

1.24%

1.03%

0.97%

0.85%

0.71%

0.62%

0.62%

0.53%

Holding

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

Number of 
shareholders

Number of 
ordinary shares

% of ordinary 
shares

1,560

1,903

724

671

59

766,231

4,987,707

5,279,704

17,096,558

150,200,483

0.43%

2.80%

2.96%

9.59%

84.23%

156

MA Financial Group | 2023 Annual ReportUnmarketable parcels
There were 105 shareholders (representing 1,838 shares) who held less than a marketable parcel.

Substantial shareholders

Name

MA Financial Group Limited

Moelis & Company International Holdings LLC

Magic TT Pty Limited

J P Morgan Nominees Australia Pty Ltd

Magic TT 2 Pty Limited

HSBC Custody Nominees (Australia) Limited

Number of 
ordinary shares

% of ordinary 
shares

18,427,692

23,500,000

19,865,799

20,842,041

14,850,000

10,039,811

10.33%

13.18%

11.69%

11.14%

8.33%

5.63%

Voting rights 
At meetings of members or classes of members, each member may vote in person or by proxy, attorney or (if the 
member is a body corporate) corporate representative. On a show of hands, every person present who is a member 
or a proxy, attorney or corporate representative of a member has one vote and on a poll every member present in 
person or by proxy, attorney or corporate representative has one vote for each fully paid share held by the member.

Share options 
The table below sets out the number of share options, with each share option carrying the right to acquire one 
share in the Company at a future date, outstanding as at 19 February 2024: 

Size of holding

Under 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

Total share options

Number of  
holders

4

2

6

3

15

Share 
Options

12,221

20,000

191,048

666,668

889,937

157

Investor information (continued)MA Financial Group | 2023 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Glossary

Term

AASB

AFSL

ASX

ASX

AUM

Board

CA&E

CAGR

CGU

Definition

Australian Accounting Standards Board

Australian Financial Services Licence

Australian Securities & Investment Commission

Australian Securities Exchange of ASX Limited (ABN 98 008 624 691) and the market operated 
by ASX Limited.

Assets under Management

The Board of Directors of MA Financial Group Limited

Corporate Advisory & Equities

Compound Annual Growth Rate

Cash generating unit

Company

MA Financial Group Limited (ABN 68 142 008 428), a company limited by shares

Corporations Act

Corporations Act 2001 (Cth)

Directors

EBITDA

EAD

ECL

ECM

The Directors of the Company as at the date of this Report 

Earnings before interest, tax, depreciation and amortisation

Exposure at default

Expected credit loss

Equity capital markets

Employees

Employees of the Group

EPS

Earnings per share

Existing Staff Trusts

Trusts established prior to the initial public offering of the Company, which hold shares on behalf 
of current and former employees of the Group. 

FVTOCI

FVTPL

FY22

FY23

Group

GST

Fair value through other comprehensive income

Fair value through profit or loss

For the financial year ended 31 December 2022

For the financial year ended 31 December 2023

The Company and its subsidiaries 

Goods and services tax

158

MA Financial Group | 2023 Annual ReportGlossary (continued)

Term

IASB

IFRS

KMP

LGD

LTI

Definition

International Accounting Standards Board

International Financial Reporting Standards

Key management personnel

Loss given default

Long-term incentive

MA Financial Group

The Company and/or its subsidiaries as the context requires

NPAT

Net profit after tax

PD

PIF

RBA

ROE

SAR

Probability of default

Priority Income Fund

Reserve Bank of Australia

Return on Equity

Share Appreciation Rights

Shareholder

The holder of a share

Shares

Fully paid ordinary shares in the capital of the Company

Share options

Options over unissued shares

Share rights

Rights to receive shares at some point in the future

SICR

SIV

VWAP

Significant increase in credit risk

Significant investor visa

Volume-weighted average price

159

MA Financial Group | 2023 Annual ReportRegistered office

Principal place of business
Level 27, Brookfield Place
10 Carrington Street
Sydney NSW 2000

Tel: + 61 2 8288 5555

Sydney
Level 27, Brookfield Place 
10 Carrington Street 
Sydney NSW 2000 
T + 61 2 8288 5555

Melbourne
Level 20, South Tower 
80 Collins Street 
Melbourne VIC 3000 
T +61 3 8650 8650

New York
3 W Main St, Suite 301, 
Irvington, 
NY 10533,
USA

Hong Kong
Level 29, Two International Finance Centre
8 Finance Street
Hong Kong
Tel: +852 2575 7188

Shanghai
Level 38, Park Place
1601 Nan Jing West Road
Jing An District 200040
Shanghai
Tel: +86 021 6137 3216

Singapore
Level 24, CapitaGreen 
138 Market Street 
Singapore 048946

mafinancial.com