METRICS INCOME
OPPORTUNITIES TRUST
(Formerly MCP Income Opportunities Trust)
Annual Report
For the year ended 30 June 2021
ARSN 631 320 628
CONTENTS
Metrics Income Opportunities Trust Appendix 4E
1
Investment Manager’s report
3
Directors’ report
4
Corporate governance statement
7
Auditor’s independence declaration
13
Statement of comprehensive income
14
Statement of financial position
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18
Directors’ declaration
37
Audit report
38
ASX additional information
42
This report covers the Metrics Income Opportunities Trust as an individual entity.
The Responsible Entity of Metrics Income Opportunities Trust is
The Trust Company (RE Services) Limited (ABN 45 003 278 831) (AFSL 235 150).
Level 18, Angel Place, 123 Pitt Street, Sydney, NSW 2000
Metrics Income Opportunities Trust
Annual Report
METRICS INCOME OPPORTUNITIES TRUST APPENDIX 4E
FOR THE YEAR ENDED 30 JUNE 2021
DETAILS OF REPORTING PERIOD
Current:
Year ended 30 June 2021
Previous corresponding:
Year ended 30 June 2020
The Directors of The Trust Company (RE Services) Limited, the Responsible Entity of the Metrics Income Opportunities Trust
(the “Fund” or “MOT”) announce the audited results of the Fund for the year ended 30 June 2021 as follows:
RESULTS FOR ANNOUNCEMENT TO THE MARKET
Extracted from Financial Statements for the year ended 30 June 2021.
2021
$’000
2020
$000
% INCREASE/
(DECREASE)
Revenue from ordinary activities
30,697
29,470
4.2%
Profit/(loss) for the year
25,741
24,678
4.3%
Total comprehensive income/(loss) for the year
25,741
24,678
4.3%
DETAILS OF DISTRIBUTIONS
YEAR ENDED
30 JUNE 2021
YEAR ENDED
30 JUNE 2020
$’000
CPU*
$’000
CPU*
The distributions for the year were as follows:
22,224
12.82
23,758
14.34
* Distribution is expressed as the cents per unit amount in Australian Dollars.
Subsequent to year end, on 30 July 2021, the Directors declared a distribution of 0.84 cents per ordinary unit which amounted
to $1,458,124 and was paid on 9 August 2021.
DETAILS OF DISTRIBUTION REINVESTMENT PLAN
The Responsible Entity has established a Distribution Reinvestment Plan (“DRP”) on 13 May 2019 in relation to all
future distributions.
The Responsible Entity expects to make distributions on a monthly basis. For such distributions, it is expected the record
date will be the first ASX trading day of each month and the last day for electing into the DRP will be 5.00pm (Sydney time)
on the first business day after the record date.
Units under the DRP are currently issued at the net asset value of a unit as determined in accordance with the
MOT constitution on the record date.
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Annual Report
1
NET TANGIBLE ASSETS
AS AT
30 JUNE 2021
AS AT
30 JUNE 2020
Total Net Tangible Assets attributable to unitholders ($’000)
351,730
347,384
Units on issue (‘000)
173,521
173,111
Net Tangible Assets attributable to unit holders per unit ($)
2.03
2.01
CONTROL GAINED OR LOST OVER ENTITIES DURING THE YEAR
There were no entities over which control was gained or lost during the year ended 30 June 2021.
NAME OF ENTITIES
DATE OF GAIN
OF CONTROL
DATE OF LOSS
OF CONTROL
CONTRIBUTION
TO PROFIT
30 JUNE 2021
($’000)
MCP Wholesale Income Opportunities Trust
23 Apr 2019
–
30,244
DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES
The Fund did not have any interest in associates and joint venture entities during the current year.
INDEPENDENT AUDIT REPORT
Additional disclosure requirements can be found in the notes to the Metrics Income Opportunities Trust financial statements
for the year ended 30 June 2021.
This report is based on the financial report which has been audited by the Fund’s auditor. All the documents comprise the
information required by Listing Rule 4.3A.
Metrics Income Opportunities Trust
Annual Report
2
During the year, the Metrics Income Opportunities Trust
(“Fund” or “MOT”) (formerly MCP Income Opportunities Trust)
continued to deliver monthly cash income and generated
a one‑year return of 7.6%, exceeding the Fund’s target cash
return of 7% p.a. In a market environment where investors
are looking for investment opportunities that generate an
attractive income and also deliver lower market volatility,
the Fund has sought to provide this investment choice,
particularly for investors seeking to lower their exposure
to public market equity investments.
As at 30 June 2021, the Fund has been deployed across 89
individual assets including Australian mid‑market corporates,
commercial real estate, and structured finance transactions
at different levels of the capital structure. This compares
to 69 assets at end of June 2020, representing enhanced
diversification of the portfolio over the year. Risks have
been appropriately managed and underlying asset quality
is sound. The Fund has delivered annualised cash
distributions of 6.8% p.a. and a total annualised return
of 7.5% p.a. since inception.
The Investment Manager (“Metrics”), continues its
commitment to provide investors in the Fund with access to
a diversified portfolio of private credit assets with exposure
to equity upside gains through its investment in the
wholesale funds managed by Metrics. Metrics believes that
access to a diversified portfolio of private credit assets with
exposure to equity upside gains provides enhanced risk
adjusted returns and is a highly unique investment option.
The ability to trade units on the ASX provides investors with
a means of managing investment liquidity in this otherwise
less liquid asset class.
MOT provides investors with an investment product that
delivers a highly skilled investment team and a robust,
independent governance framework under the control
of the Responsible Entity.
Over the past year, Metrics’ total assets under management
have grown to in excess of $8 billion and there have been
two new funds launched. As part of our continued growth,
Metrics has continued to invest in further building out our
direct origination and risk management capabilities. Metrics
also continues to expand on our Environmental, Social and
Governance investment activities (“ESG”), which are
reflective of the United Nations Principles for Responsible
Investment (“UNPRI”), and we ensure that ESG is embedded
across all of our investment activities.
In March 2021, global credit ratings agency S&P Global
(“S&P”) gave a new rating of A‑ to the MCP Real Estate Debt
Fund, in which MOT invests. This rating supports Metrics’
sound valuation and credit decisioning processes.
Metrics received industry recognition during the 2021
financial year and was recognised as the Alternative
Investment Manager of the Year at the Australian Alternative
Investment Awards.
COVID‑19 UPDATE
Australia’s economy continued to be impacted by the
coronavirus (“COVID‑19”) pandemic, although the volatility
evident in public equity, fixed income and offshore credit
markets was largely absent in Australia’s bank‑dominated
Corporate Loan Market, reflecting a private market where
borrowers and lenders engage directly and where credit
risk is the primary focus.
Despite material economic headwinds and public market
volatility, the Fund’s portfolio has continued to deliver capital
stability, reflected in the daily published Net Asset Value
(“NAV”), as well as pay monthly cash distributions exceeding
its Target Return.
We note that in addition to the half year and annual audit
process, the Fund’s Responsible Entity also engages an
independent third party accounting firm to conduct an
independent portfolio credit and pricing review on the loans
which the Fund is exposed to. This is done monthly, in order
for the Responsible Entity to be able to provide an accurate
NAV for the Fund.
We believe the portfolio is well positioned to capitalise on
attractive lending opportunities emerging as we continue
to move through the pandemic.
INVESTMENT MANAGER’S REPORT
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3
DIRECTORS’ REPORT
The Trust Company (RE Services) Limited (ABN 45 003 278 831,
AFSL 235150) is the responsible entity (the “Responsible
Entity”) of Metrics Income Opportunities Trust (the “Fund”).
The directors of the Responsible Entity (the “Directors”)
present their report together with the financial statements
of the Fund for the year ended June 30, 2021.
On 3 August 2021 the Responsible Entity lodged an
announcement with the Australian Securities Exchange
(“ASX”) to advise of the intention to change the name of the
Fund from “MCP Income Opportunities Trust” to “Metrics
Income Opportunities Trust”. The change of name became
effective on 30 July 2021 i.e., date of registration of
change name with ASIC.
PRINCIPAL ACTIVITIES
The Fund is a registered managed investment Fund
domiciled in Australia.
The Fund invests in diversified loan portfolios that aims to
outperform the RBA Cash Rate plus 3.25% p.a. (net of fees).
The Fund’s investment strategy is to create a diversified
exposure to private credit investments and other assets
such as warrants, options, preference shares and equity.
Through active portfolio risk management, the Investment
Manager seeks to provide quarterly cash income and
preserve investor capital. Amounts raised by the Fund are
invested in the MCP Wholesale Income Opportunities Trust.
The MCP Wholesale Income Opportunities Trust invests
directly in wholesale funds or directly in investment assets.
Through active portfolio risk management, the Investment
Manager (Metrics Credit Partners Pty Ltd) will seek to
balance the delivery of unitholder returns and preserving
investor capital.
The Fund was constituted on 25 February 2019, commenced
operations on 23 April 2019 and its units commenced trading
on the Australian Securities Exchange (ASX: MOT) on
29 April 2019.
The Fund did not have any employees during the year.
There were no significant changes in the nature of the
Fund’s activities during the year.
DIRECTORS
The Directors of The Trust Company (RE Services) Limited
during the year and up to the date of this report are shown
below. The Directors were in office for this entire year
except where stated otherwise:
NAME
DATE OF APPOINTMENT/RESIGNATION
Glenn Foster
Resigned as Director on
23 October 2020
Appointed as a Non-executive
Director on 1 February 2021
Richard McCarthy
Director
Simone Mosse
Director
Vicki Riggio
Director
Phillip Blackmore
Alternate Director for Vicki Riggio
UNITS ON ISSUE
Units on issue in the Fund at the end of the year are set
out below:
AS AT
30 JUNE 2021
UNITS (’000)
AS AT
30 JUNE 2020
UNITS (’000)
Units on issue
173,521
173,111
REVIEW AND RESULTS OF OPERATIONS
During the year, the Fund invested in accordance with
the investment objective and guidelines as set out in the
governing documents of the Fund and in accordance with the
provision of the Fund’s Constitution (“Fund’s Constitution”).
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RESULTS
The performance of the Fund, as represented by the results
of its operations, was as follows:
YEAR ENDED
30 JUNE 2021
YEAR ENDED
30 JUNE 2020
Profit/(loss) for the
year ($’000)
25,741
24,678
Distributions paid/
payable ($’000)
22,224
23,758
Distributions
(cents per unit)
12.82
14.34
FINANCIAL POSITION
As at June 30, 2021, the Fund’s total assets amounted to
$355,072,000 (30 June 2020: $351,228,000).
Net Tangible Assets (“NTA”) per unit as disclosed to the ASX
were as follows:
YEAR ENDED
30 JUNE 2021
YEAR ENDED
30 JUNE 2020
At reporting period*
2.0435
2.0260
High during period
2.0435
2.0260
Low during period
2.0078
2.0104
* The above NTA per unit was the cum-price which includes 1.98 cents
per unit distribution (2020: 2.31 cents per unit)
SIGNIFICANT CHANGES IN STATES OF AFFAIRS
The Directors continue to assess the potential financial and
other impacts of the coronavirus (“COVID-19”) outbreak to
the Fund. The current high-level of uncertainty regarding
the severity and length of COVID-19 on investment markets
has impacted investment outcomes and increased volatility
in investment performance during the period.
At the date of signing, the future impacts of COVID-19 on
global and domestic economies and investment market
indices, and their resulting impact on the Fund are uncertain.
The Directors and management will continue to monitor
this situation.
* Amounts have not been rounded.
On 1 February 2021, Glenn Foster was appointed as a
Non-executive Director.
In the opinion of the Directors, there were no other significant
changes in the state of affairs of the Fund that occurred
during the year.
MATTERS SUBSEQUENT TO THE END OF THE
FINANCIAL YEAR
As noted above the name of the Fund was changed effective
from 30 July 2021 i.e., date of registration of change of name
with ASIC to the Metrics Income Opportunities Trust.
On 2 August 2021, the Directors declared a distribution of
0.84 cents per ordinary unit which amounted to $1,458,124*
and was paid on 9 August 2021.
As noted above, the impacts of COVID‑19 are still unfolding,
and there may be further impacts on the Fund. There is
no other matter or circumstance which has arisen since
30 June 2021 that has significantly affected, or may
significantly affect:
(i) the operations of the Fund in future financial years, or
(ii) the results of those operations in future financial years, or
(iii) the state of affairs of the Fund in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
OF OPERATIONS
The Fund will continue to be managed in accordance with
the investment objectives and guidelines as set out in the
governing documents of the Fund and in accordance with
the provisions of the Fund’s Constitution.
The results of the Fund’s operations will be affected by a
number of factors, including the performance of investment
markets in which the Fund invests. Investment performance
is not guaranteed, and future returns may differ from past
returns. As investment conditions change over time, past
returns should not be used to predict future returns.
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Annual Report
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INDEMNIFICATION AND INSURANCE OF OFFICERS
AND AUDITORS
No insurance premiums are paid for out of the assets of the
Fund in regard to the insurance cover provided to either the
officers of the Responsible Entity or the auditors of the Fund.
So long as the officers of the Responsible Entity act in
accordance with the Fund’s Constitution and the Corporations
Act 2001, the officers remain indemnified out of the assets
of the Fund against losses incurred while acting on behalf
of the Fund.
The auditor of the Fund is in no way indemnified out of the
assets of the Fund.
FEES PAID TO AND INTERESTS HELD IN THE FUND
BY THE RESPONSIBLE ENTITY OR ITS ASSOCIATES
Fees paid to the Responsible Entity and its associates out of
the Fund’s property during the year are disclosed in Note 12
of the financial statements.
No fees were paid out of the Fund’s property to the Directors
of the Responsible Entity during the year.
The number of interests in the Fund held by the Responsible
Entity or its associates as at the end of the financial year are
disclosed in Note 12 of the financial statements.
UNITS IN THE FUND
The movement in units on issue in the Fund during the year
is disclosed in Note 7 of the financial statements.
The value of the Fund’s assets and liabilities is disclosed
in the Statement of financial position and derived using the
basis set out in Note 2 of the financial statements.
ENVIRONMENTAL REGULATION
The operations of the Fund are not subject to any particular
or significant environmental regulations under Commonwealth,
State or Territory law.
ROUNDING OF AMOUNTS TO THE NEAREST
THOUSAND DOLLARS
The Fund is an entity of a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191 issued by the Australian Securities and
Investments Commission (ASIC) relating to the “rounding off”
of amounts in the Directors’ report and Financial Statements.
Amounts in the Directors’ report and Financial Statements
have been rounded to the nearest thousand dollars in
accordance with that ASIC Corporations Instrument,
unless otherwise indicated.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s independence declaration as
required under section 307C of the Corporations Act 2001
is set out on page 13.
This report is made in accordance with a resolution of the
Directors of The Trust Company (RE Services) Limited.
Director
The Trust Company (RE Services) Limited
Sydney
24 August 2021
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BACKGROUND
The Trust Company (RE Services) Limited (“Responsible
Entity”) is the responsible entity for the Metrics Income
Opportunities Trust (formerly, MCP Income Opportunities
Trust) (“Fund”), a registered managed investment scheme
that is listed on the Australian Securities Exchange (“ASX”).
The Responsible Entity is a wholly owned subsidiary of
Perpetual Limited (ASX: PPT) (“Perpetual”).
The Responsible Entity is reliant on Perpetual for access to
adequate resources including directors, management, staff,
functional support (such as company secretarial, responsible
managers, legal, compliance, risk and finance) and financial
resources. As at the date of this Corporate Governance
Statement, Perpetual has at all times made such resources
available to the Responsible Entity.
In operating the Fund, the Responsible Entity’s overarching
principle is to always act in good faith and in the best interests
of the Fund’s unitholders, in accordance with our fiduciary
duty. The Responsible Entity’s duties and obligations in
relation to the Fund principally arise from: the Constitution of
the Fund; the Compliance Plan for the Fund; the Corporations
Act 2001 (“Act”); the ASX Listing Rules; the Responsible
Entity’s Australian Financial Services Licence; relevant
regulatory guidance; relevant contractual arrangements;
and other applicable laws and regulations.
CORPORATE GOVERNANCE
At Perpetual, good corporate governance includes a genuine
commitment to the ASX Corporate Governance Council
Corporate Governance Principles and Recommendations
4th Edition (“Principles”).
The directors of the Responsible Entity are committed to
implementing high standards of corporate governance in
operating the Fund and, to the extent applicable to registered
managed investment schemes, are guided by the values and
principles set out in Perpetual’s Corporate Responsibility
Statement and the Principles. The Responsible Entity is
pleased to advise that, to the extent the Principles are
applicable to registered managed investment schemes,
its practices are largely consistent with the Principles.
As a leading responsible entity, the Responsible Entity
operates a number of registered managed investment
schemes (“Schemes”). The Schemes include the Fund as well
as other schemes that are listed on the ASX. The Responsible
Entity’s approach in relation to corporate governance in
operating the Fund is consistent with its approach in relation
to the Schemes generally.
The Responsible Entity addresses each of the Principles that
are applicable to externally managed listed entities in relation
to the Schemes, including the Fund, as at the date of this
Corporate Governance Statement.
PRINCIPLE 1 – LAY SOLID FOUNDATIONS FOR
MANAGEMENT AND OVERSIGHT
The role of the Responsible Entity’s Board is generally to set
objectives and goals for the operation of the Responsible
Entity and the Schemes, to oversee the Responsible Entity’s
management, to regularly review performance and to monitor
the Responsible Entity’s affairs and act in the best interests of
the unitholders of the Fund. The Responsible Entity’s Board is
accountable to the unitholders of the Fund, and is responsible
for approving the Responsible Entity’s overall objectives and
overseeing their implementation in discharging their duties
and obligations and operating the Fund.
Directors, management and staff are guided by Perpetual’s
Code of Conduct and Perpetual Risk Appetite Statement
which is designed to assist them in making ethical
business decisions.
The role of the Responsible Entity’s management is to
manage the business of the Responsible Entity in operating
the Fund. The Responsible Entity Board delegates to
management all matters not reserved to the Responsible
Entity’s Board, including the day‑to‑day management of
the Responsible Entity and the operation of the Fund.
The Responsible Entity appoints agents (“Service Providers”)
to manage the key operations of the Fund which include
investment management, administration, custody and other
specialist services and functions as required depending on
the nature of the Fund. The Responsible Entity obtains
relevant services from third party service providers under
outsourcing agreements.
CORPORATE GOVERNANCE STATEMENT
AS AT 30 JUNE 2021
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7
Effective processes for monitoring Service Providers are
integral to the Responsible Entity’s operations, given that
substantial operational activities are outsourced to third
parties. The Management of the Responsible Entity ensure
a systematic and rigorous approach is applied with respect
to monitoring the performance of outsourced Service
Providers to the Fund.
The Responsible Entity views all interactions with Service
Providers as a monitoring opportunity, from the informal
discussions that regularly occur with Service Providers, to
more formalised monitoring reviews. The outcomes of all
interactions with Service Providers inform the Responsible
Entity’s view as to the extent to which the Service Provider
is complying with their operational obligations to the
Responsible Entity.
Prior to appointment, all Service Providers are subject to
operational due diligence, to verify that the Service Provider
can deliver the outsourced services in an efficient, effective
and compliant manner. All Service Providers are assigned
an initial operational risk rating.
The Responsible Entity’s approach to Service Provider
monitoring is outlined in the diagram to the right. In addition
to the continuous monitoring that occurs through day to day
interactions with Service Providers in the regular course of
business, all Service Providers are required to periodically
report to the Responsible Entity as to the extent to which they
have met their obligations. Periodically, the Service Provider’s
risk rating is reviewed by the stakeholders within the business,
based on the outcomes of all interactions that have occurred
with the Service Provider during the review period.
Informal
engagement
The RE and
Management
Compliance
reporting
Formal
reviews
Key
scheme
data1
Market
intellegence2
1. Includes information regarding investment performance, actual versus
strategic asset allocation, liquidity where applicable and complaints,
incidents and issues arising with respect to the operation of the Fund.
2. Information from secondary sources, including the media and analysts
and rating house reports.
The Responsible Entity maintains policy, procedure and
program documents that determine the nature and frequency
of formal service provider monitoring reviews. Service
providers are typically subject to reviews every 18 months.
The Service Provider risk rating dictates any additional
monitoring measures required to be put in place – for
example a Service Provider assessed as ‘low to medium risk’
will be subject to the standard monitoring measures the
Responsible Entity utilises under the Service Provider
Monitoring Framework. Service Providers risk rated ‘high to
very high’ may be subject to additional oversight measures to
deal with the factors that caused the Service Providers risk
rating to be high or very high. In addition, management and
stakeholders utilise the risk assessment rating in determining
if any action is required when considering information and
the outcomes of all interactions that have occurred with the
Service Provider during the review period.
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PRINCIPLE 2 – STRUCTURE THE BOARD TO BE
EFFECTIVE AND ADD VALUE
At present the Responsible Entity Board consists of three
executive directors, one non-executive director and one
alternate director. The names of the current directors and
year of appointment is provided below:
Name of Director
Year of Appointment
Glenn Foster
Resigned 23 October 2020
as an Executive Director
Appointed on
1 February 2021 as a
Non‑executive Director
Simone Mosse
2019
Richard McCarthy
2018
Vicki Riggio
2018
Phillip Blackmore
(Alternate for Vicki Riggio)
2018
As the Responsible Entity’s Board consists of a majority of
executive directors, a Compliance Committee is appointed
in relation to the Fund (refer to Principle 7). None of the
directors of the Responsible Entity are independent and
they are not remunerated by the Responsible Entity. The
Compliance Committee comprises a majority of external
members and is chaired by an external member who is
not the chair of the Responsible Entity Board.
PRINCIPLE 3 – INSTIL A CULTURE OF ACTING
LAWFULLY, ETHICALLY AND RESPONSIBLY
The Responsible Entity relies on a variety of mechanisms
to monitor and maintain a culture of acting lawfully, ethically
and responsibly:
> policies and procedures: a Code of Conduct which
articulates and discloses Perpetual’s values, cyclical
mandatory training, a Whistleblowing Policy and a Gifts,
Political Donations, Bribery and Corrupt Practices Policy
(further details noted below);
> “The Way We Work” behaviour framework, and risk
ratings that are intertwined into its annual performance,
remuneration and hiring processes; and
> a regular feedback mechanism in place to assess
employee sentiment, with actions implemented in
response to results .
These apply to all directors and employees of Perpetual,
and the Responsible Entity. The Code of Conduct, The Way
We Work and core values supports all aspects of the way the
Responsible Entity conducts its business and is embedded
into Perpetual’s performance management process.
The Code of Conduct draws from and expands on Perpetual’s
Core Values of integrity, partnership and excellence. The Code
of Conduct underpins Perpetual’s culture. The Responsible
Entity Board and the Compliance Committee are informed
of material breaches of the Code of Conduct which relate
to the Scheme and the Responsible Entity.
Additional policies deal with a range of issues such as the
obligation to maintain client confidentiality and to protect
confidential information, the need to make full and timely
disclosure of any price sensitive information and to provide
a safe workplace for employees, which is free from
discrimination. Compliance with Perpetual’s Code of
Conduct is mandatory for all employees. A breach is
considered to be a serious matter that may impact an
employee’s performance and reward outcomes and
may result in disciplinary action, including dismissal.
A full copy of the Code of Conduct is available on
Perpetual’s website: (https://www.perpetual.com.au/
about/corporate‑governance/code‑of‑conduct).
Perpetual also has a Whistleblowing Policy to protect directors,
executives, employees (including current and former),
contractors and suppliers (and relatives and dependants
of any of these people) who report misconduct, including:
> conduct that breaches any law, regulation, regulatory
licence or code that applies to Perpetual;
> fraud, corrupt practices or unethical behaviour;
> bribery;
> unethical behaviour which breaches Perpetual’s Code
of Conduct or policies;
> inappropriate accounting, control or audit activity;
including the irregular use of Perpetual or client monies;
> any conduct that amounts to modern slavery, such as
debt bondage and human trafficking of employees; and
> any other conduct which could cause loss to, or be
detrimental to the interests or reputation of, Perpetual
or its clients.
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As part of Perpetual’s Whistleblowing Policy, a third party has
been engaged to provide an independent and confidential
hotline for whistle‑blowers who prefer to raise their concern
with an external organisation.
A full copy of the Whistleblowing Policy is available on
Perpetual’s website ((https://www.perpetual.com.au/about/
corporate‑governance/code‑of‑conduct).
As part of Perpetual’s commitment to promoting good
corporate conduct and to conducting business in accordance
with the highest ethical and legal standards, bribery and
corrupt practices will not be tolerated by Perpetual under
any circumstances. Perpetual’s Gifts, Political Donations,
Bribery and Corrupt Practices Policy supports Perpetual’s
commitment by:
> prohibiting the payment of political donations;
> instituting proper procedures regarding the exchange
of gifts;
> clearly outlining Perpetual’s zero tolerance for bribery
and corruption; and
> including avenues where concerns may be raised.
Material breaches of the Code of Conduct or the Gifts,
Political Donations, Bribery and Corrupt Practice policy
are managed in accordance with Perpetual’s usual issues
management process which would include reporting to the
Responsible Entity Board and Compliance Committee where
the breach relates to a product or service offered by the
Responsible Entity.
A full copy of the Gifts, Political Donations, Bribery and
Corrupt Practices Policy is available on Perpetual’s website
(https://www.perpetual.com.au/about/corporate‑governance/
code‑of‑conduct).
Mechanisms are in place to ensure the Responsible Entity
Board and the Compliance Committee are informed of material
breaches which impact the Fund and the Responsible Entity
which would include material breaches of the Code of
Conduct and material incidences reported under the
Whistleblowing Policy.
PRINCIPLE 4 – SAFEGUARD THE INTEGRITY
OF CORPORATE REPORTS
The functions of an audit committee are undertaken by
the full Responsible Entity Board with assistance from
management. The Responsible Entity has policies and
procedures designed to ensure that the Fund’s:
> financial reports are true and fair and meet high standards
of disclosure and audit integrity; and
> other reports released on ASX are materially accurate
and balanced.
This includes policies relating to the preparation, review
and sign off process required for the Fund’s financial reports,
the engagement of the Fund’s independent auditors and the
review and release of certain reports on the ASX.
The declarations under section 295A of the Corporations
Act 2001 provide formal statements to the Responsible
Entity Board in relation to the Fund (refer to Principle 7).
The declarations confirm the matters required by the
Corporations Act in connection with financial reporting.
The Responsible Entity receives confirmations from the
service providers involved in financial reporting and
management of the Fund, including the Investment Manager.
These confirmations together with the Responsible Entity’s
Risk and Compliance Framework which includes the service
provider oversight framework, assist its staff in making
the declarations provided under section 295A of the
Corporations Act. The Responsible Entity manages the
engagement and monitoring of independent ‘external’
auditors for the Fund. The Responsible Entity Board receives
periodic reports from the external auditors in relation to
financial reporting and the compliance plans for the Fund.
PRINCIPLE 5 – MAKE TIMELY AND BALANCED
DISCLOSURE
The Responsible Entity has a continuous disclosure policy
to ensure compliance with the continuous disclosure
requirements of the Corporations Act and the ASX Listing
Rules in relation to the Fund which sets out the processes
to review and authorise market announcements and which is
periodically reviewed to ensure that it is operating effectively.
The policy requires timely disclosure of information to be
reported to the Responsible Entity’s management and/or
directors to ensure that, information that a reasonable person
would expect to have a material effect on the unit price or
Metrics Income Opportunities Trust
Annual Report
10
would influence an investment decision in relation to any of
the Fund, is disclosed to the market. The Responsible Entity’s
Company Secretary may assist management and/or the
directors in making disclosures to the ASX after appropriate
Responsible Entity’s Board consultation for material market
announcements. The Responsible Entity requires service
providers, including the Investment Manager, to comply with
its policy in relation to continuous disclosure for the Fund.
The Responsible Entity’s Company Secretary is the
Continuous Disclosure Officer for the Fund in accordance
with the ASX Listing Rules.
PRINCIPLE 6 – RESPECT THE RIGHTS OF
UNITHOLDERS
The Responsible Entity is committed to ensuring timely and
accurate information about the Fund is available to security
holders via the Fund’s website. All ASX announcements are
promptly posted on the Fund’s website: www.metrics.com.au.
The annual and half year results financial statements and other
communication materials are also published on the website.
In addition to the continuous disclosure obligations, the
Responsible Entity receives and responds to formal and
informal communications from unitholders and convenes
formal and informal meetings of unitholders as requested
or required. The meetings are held in accordance with
the requirements of the Corporations Act that apply to a
registered managed investment scheme. The Responsible
Entity has an active program for effective communication with
the unitholders and other stakeholders in relation to Fund.
The Responsible Entity is ultimately responsible for ensuring
that any complaints received from unitholders are handled
in accordance with its policy settings and regulatory
requirements. The Responsible Entity is a member of the
Australian Financial Complaints Authority (“AFCA”) external
dispute resolution scheme and, if unitholders are dissatisfied
with the handling of their complaint by the Responsible Entity,
AFCA may be able to assist unitholders achieve resolution
to their complaint.
The Responsible Entity is also committed to communicating
with unitholders electronically in relation to communications
from the unit registry. Unitholders may elect to receive
information from the Fund’s unit registry electronically.
PRINCIPLE 7 – RECOGNISE AND MANAGE RISK
The Responsible Entity has established a Compliance
Committee, comprised of Johanna Turner (“Chair”), Virginia
Malley and Simone Mosse. A majority of the Responsible
Entity Compliance Committee is comprised of external
members, including an external independent Chair.
The Compliance Committee meets at least quarterly.
The Compliance Committee Terms of Reference sets out
its role and responsibilities, which is available on request.
The Compliance Committee is responsible for monitoring
compliance by the Responsible Entity of the Compliance
Plan for the Fund, Fund Constitution and the Corporations
Act. It is also responsible for assessing the adequacy of the
Compliance Plan for the Fund and making recommendations
to the Responsible Entity board.
The Responsible Entity values the importance of robust
risk and compliance management. The Responsible Entity
operates under the Perpetual Limited (“Perpetual”) Risk
Management Framework (“RMF”) which applies to all the
activities Perpetual undertakes as Responsible Entity.
The RMF aligns to International Standard ISO 31000:2018
‘Risk Management Guidelines’ and consists of supporting
frameworks, programs and policies which have been
developed, implemented and are regularly assessed for
effectiveness to support the management of the following
risk categories considered material to Perpetual: Strategic,
People, Financial, Investment, Operational, IT & Cyber
Security, Outsourcing, Environmental, Social & Governance,
Compliance & Legal and Conduct Risk.
At Perpetual a current risk register is maintained as part
of our formal risk management program. The systems
supporting the business have been designed to ensure risks
are managed within the boundaries of the Perpetual Risk
Appetite Statement (“RAS”) which articulates the expected
behaviours, measures and tolerances that management are
to take into account when setting and implementing strategy
and running their day‑day areas of responsibility.
Perpetual’s RMF is reviewed annually and was last updated
and approved by the Perpetual Board in June 2021, with
other programs and policies supporting the RMF regularly
reviewed to ensure they remain fit‑for purpose and effective.
Metrics Income Opportunities Trust
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11
All Perpetual Group Executives are accountable for managing
risk within their area of responsibility, including the extent
to which the Responsible Entity is effectively applying and
acting in accordance with the RMF. They are also required
to manage risk as part of their business objectives with
risk management integrated across business processes.
The RMF is underpinned by the “Three Lines of Defence”
model to implement best practice risk management. This
model sees the first line, being business unit management,
accountable for the day to day identification, ownership
and management of risks. The Group Risk, Compliance and
Client Advocacy functions represent the second line and
consists of risk and compliance management professionals
who provide the framework, tools, advice and assistance
to enable management to effectively identify, assess and
manage risk and meet their compliance obligations, and is
responsible for overseeing and monitoring first line activities.
Internal Audit provides independent assurance, representing
the third line, and reports to the Audit, Risk and Compliance
Committee (“ARCC”).
The Perpetual Board has the responsibility and commitment
to monitor that the organisation has a framework in place to
manage risk. The Board’s commitment is reflected through
the establishment of, and investment in the Perpetual Group
Risk, Group Compliance and Internal Audit functions, led
by the Chief Risk Officer.
Internal Audit is an integral part of Perpetual’s governance
and risk management culture and aims to protect Perpetual’s
earnings, reputation and customers. Perpetual’s Internal
Audit function reports functionality to the Perpetual Limited
Audit, Risk & Compliance Committee, and for administrative
purposes, through the Perpetual Chief Risk Officer and is
independent from the External Auditor and from Perpetual
Executive Management. Internal Audit provides independent
and objective assurance, a disciplined approach to
the assessment and improvement of risk management
and monitoring and reporting on audit findings and
recommendations. The Internal Audit Plan {“Plan”) is
approved formally by the ARCC each year and re‑assessed
quarterly to ensure it is dynamic and continues to address
the key risks faced by the Group. Progress against the Plan,
changes to the Plan and results of audit activity are reported
quarterly to the ARCC.
Perpetual’s Audit, Risk and Compliance Committee is
responsible for oversight and monitoring of the Perpetual’s
risk appetite statement, compliance and risk management
frameworks and internal control systems, and risk culture.
The ARCC is also responsible for monitoring overall legal
and regulatory compliance across Perpetual including the
Responsible Entity. The RMF was reviewed, updated and
approved by the Perpetual Limited Board during the 2021
financial year. The RMF consists of programs and policies
which are designed to address specific risk categories
– strategic, financial, operational, outsourcing, investment,
reputation, people and compliance, legal and conduct risk.
Programs supporting the RMF are regularly reviewed
to confirm their appropriateness. The Audit, Risk and
Compliance Committee is comprised of Ian Hammond
(Chair), Nancy Fox, Craig Ueland and Gregory Cooper.
The Audit, Risk and Compliance Committee Terms of
Reference sets out its role and responsibilities. This can
be obtained on the Perpetual website.
In respect of social and ethical considerations, the Investment
Manager continues to expand on Environmental, Social
and Governance investment activities (“ESG”), which are
reflective of the United Nations Principles for Responsible
Investment (“UNPRI”), and to ensure that ESG is embedded
across all investment activities.
PRINCIPLE 8 – REMUNERATE FAIRLY
AND RESPONSIBLY
The Responsible Entity does not have a Remuneration
Committee. The fees and expenses which the Responsible
Entity is permitted to pay out of the assets of the Fund are set
out in the Fund constitution. The Fund financial statements
provide details of all fees and expenses paid by the Fund
during a financial period.
Metrics Income Opportunities Trust
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12
AUDITOR’S INDEPENDENCE DECLARATION
13
©2021 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.
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of The Trust Company (RE Services) Limited as the Responsible
Entity of Metrics Income Opportunities Trust (formerly MCP Income
Opportunities Trust)
I declare that, to the best of my knowledge and belief, in relation to the audit of Metrics Income
Opportunities Trust for the financial year ended 30 June 2021 there have been:
i.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Andrew Reeves
Partner
Sydney
24 August 2021
Metrics Income Opportunities Trust
Annual Report
13
NOTES
YEAR ENDED
30 JUNE 2021
$’000
YEAR ENDED
30 JUNE 2020
$’000
Investment income
Interest income from Financial Instruments at amortised cost
454
514
Net gains/(losses) on financial instruments at fair value through profit or loss
3,510
944
Distribution income
26,733
28,012
Total investment income/(loss)
30,697
29,470
Expenses
Responsible Entity’s fees
12
145
142
Management fees
12
3,603
3,374
Investor equalisation expense
901
857
Administrative expenses
307
419
Total expenses
4,956
4,792
Profit/(loss) for the year
25,741
24,678
Other comprehensive income
–
–
Total comprehensive income/(loss) for the year
25,741
24,678
Earnings per unit for profit attributable to unitholders of the Fund
Basic and diluted earnings/(loss) per unit (cents)
9
14.85
14.94
The above Statement of comprehensive income should be read in conjunction with the accompanying notes.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Metrics Income Opportunities Trust
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14
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
NOTES
AS AT
30 JUNE 2021
$’000
AS AT
30 JUNE 2020
$’000
Assets
Cash and cash equivalents
10
1,483
1,083
Distributions receivable
3,262
3,703
GST and other receivables
89
86
Financial assets
5
350,238
346,356
Total assets
355,072
351,228
Liabilities
Distributions payable
8
2,864
3,341
Responsible Entity’s fees payable
12
107
106
Management fees payable
12
298
314
Other payables
73
83
Total liabilities
3,342
3,844
Net assets attributable to unitholders – equity
7
351,730
347,384
The above Statement of financial position should be read in conjunction with the accompanying notes.
Metrics Income Opportunities Trust
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15
NOTES
YEAR ENDED
30 JUNE 2021
$’000
YEAR ENDED
30 JUNE 2020
$’000
Total equity at the beginning of the year
347,384
300,237
Comprehensive income for the year
Profit/(loss) for the year
25,741
24,678
Total comprehensive income for the year
25,741
24,678
Transactions with unitholders
Capital raising
7
–
45,000
Units issued upon reinvestment of distributions
7
829
1,227
Distributions paid and payable
7, 8
(22,224)
(23,758)
Total transactions with unitholders
(21,395)
22,469
Total equity at the end of the year
351,730
347,384
The above Statement of changes in equity should be read in conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Metrics Income Opportunities Trust
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16
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES
YEAR ENDED
30 JUNE 2021
$’000
YEAR ENDED
30 JUNE 2020
$’000
Cash flows from operating activities
Interest received on Financial Instruments at amortised cost
2
141
Net investor equalisation expense paid
(26)
(48)
Distribution income received
27,175
27,652
Management fees paid
(3,619)
(3,405)
Responsible Entity’s fees paid
(144)
(62)
Other expenses paid
(319)
(408)
Net cash inflow/(outflow) from operating activities
10
23,069
23,870
Cash flows from investing activities
Purchase of financial assets at fair value through profit or loss
(800)
(73,500)
Investment Manager loan drawdown
–
(570)
Net cash inflow/(outflow) from investing activities
(800)
(74,070)
Cash flows from financing activities
Proceeds from application by unitholders
–
45,000
Distributions paid to unitholders
(21,869)
(22,206)
Net cash inflow/(outflow) from financing activities
(21,869)
22,795
Net increase/(decrease) in cash and cash equivalents
400
(27,405)
Cash and cash equivalents at the beginning of the year
1,083
28,488
Cash and cash equivalents at the end of the year
10
1,483
1,083
The above Statement of cash flows should be read in conjunction with the accompanying notes.
Metrics Income Opportunities Trust
Annual Report
17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1 GENERAL INFORMATION
These financial statements cover the Metrics Income
Opportunities Trust (the “Fund”) (formerly MCP Income
Opportunities Trust) as an individual entity. The Fund is
a registered management investments scheme and is
domiciled in Australia. The Fund and was constituted on
25 February 2019, registered with the Australian Securities
and Investments Commission on 7 February 2019,
commenced operations on 23 April 2019 and its units
commenced trading on the Australian Securities Exchange
(ASX: MOT) on 29 April 2019. The Fund will terminate in
accordance with the provisions of the Fund’s Constitution.
The Trust Company (RE Services) Limited
(ABN 45 003 278 831, AFSL 235 150) is the responsible
entity of the Fund (the “Responsible Entity’’). The Responsible
Entity’s registered office is Level 18 Angel Place, 123 Pitt Street,
Sydney, NSW 2000.
The Investment Manager of the Fund is Metrics Credit
Partners Pty Ltd (AFSL 416 146) (“the Investment Manager”).
The Custodian of the Fund is Perpetual Corporate
Trust Limited (“Custodian”).
The Fund’s investment strategy is to create a diversified
exposure to private credit investments and other assets
such as warrants, options, preference shares and equity.
Through active portfolio risk management, the Investment
Manager seeks to provide quarterly cash income and
preserve investor capital. Amounts raised by the Fund are
invested in the MCP Wholesale Income Opportunities Trust.
The MCP Wholesale Income Opportunities Trust invests
directly in wholesale funds or directly in investment assets.
The financial statements were authorised for issue by the
directors of the Responsible Entity (the “Directors of the
Responsible Entity”) on 24 August 2021. The Directors
of the Responsible Entity have the power to amend and
reissue the financial statements.
CONTENTS
1 General information
18
2 Summary of significant accounting policies
19
3 Financial risk management
24
4 Fair value measurements
28
5 Financial assets
30
6 Structured entities
30
7 Net assets attributable to unitholders
31
8 Distributions to unitholders
32
9 Earnings per unit
33
10 Reconciliation of profit/(loss) to net cash
inflow/(outflow) from operating activities
33
11 Auditor’s remuneration
34
12 Related party transactions
34
13 Segment Information
36
14 Significant events during the year
36
15 Events occurring after the reporting period
36
16 Contingent assets and liabilities and commitments
36
Metrics Income Opportunities Trust
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18
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the
preparation of these financial statements are set out below.
These policies have been consistently applied to the period
presented, unless otherwise stated.
(a) Basis of preparation
These general‑purpose financial statements have been
prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian
Accounting Standards Board (“AASB”) and the Corporations
Act 2001 in Australia. The Fund is a for‑profit entity for the
purpose of preparing the financial statements.
The financial statements are prepared on the basis of fair
value measurement of assets and liabilities except where
otherwise stated.
The Statement of financial position is presented on a
liquidity basis. Assets and liabilities are presented in
decreasing order of liquidity and are not distinguished
between current and non‑current. All balances are generally
expected to be recovered or settled within twelve months,
except for investments in financial assets and net assets
attributable to unitholders. The amount to be recovered or
settled in twelve months in relation to these balances remain
subject to the performance of the Fund and its operations
in accordance with the Constitution. Investors in the Fund
have no rights to redeem and can only sell units on the ASX.
The Fund is operated by the Investment Manager to ensure
the investment in MCP Wholesale Income Opportunities
Trust are held at fair value.
Items included in the Fund’s financial statements are
measured using the currency of the primary economic
environment in which it operates (the “functional currency”).
This is the Australian dollar, which reflects the currency
of the economy in which the Fund competes for funds
and is regulated. The Australian dollar is also the Fund’s
presentation currency.
Investment Entity
The Fund has been deemed to meet the definition of
an investment entity, as the following conditions exist:
> The Fund has obtained funds for providing investors
with investment management services;
> The Fund’s business purpose, which was communicated
directly to investors, is investing solely for returns from
capital appreciation and investment income; and
> The performance of investments made through the
Fund are measured and evaluated on a fair value basis.
Refer to note 4 for further details.
The Metrics Income Opportunities Trust and the MCP
Wholesale Income Opportunities Trust were formed
due to legal, regulatory, tax or similar requirements.
When considered together they display the characteristics
of an investment entity:
> the Fund indirectly holds more than one investment
because the wholesale fund holds a portfolio
of investments;
> the MCP Wholesale Income Opportunities Trust is largely
capitalised by the Fund, the Fund is funded by more than
one investor who are related to the Fund; and
> ownership in the Fund and the MCP Wholesale Income
Opportunities Trust are represented by the Fund interests
to which a proportion of the net assets of the investment
entity are attributed.
(i) Compliance with International Financial Reporting
Standards (IFRS); The financial statements of the
Fund also comply with International Financial Reporting
Standards and Interpretations as issued by the
International Accounting Standards Board (IASB).
(ii) New and amended standards adopted by the Fund;
There are no standards, interpretations or amendments
to existing standards that are effective for the first time
for the financial year beginning 1 July 2020 that have a
material impact on the amounts recognised in the prior
period or will affect the current or future periods.
(iii) New standards, amendments and interpretations
effective after 1 July 2021 and have not been early
adopted; A number of new standards, amendments
to standards and interpretations are effective for
annual reporting periods beginning after 1 July 2021.
Management has made an assessment and concluded
that none of these are expected to have a material
impact on the financial statements.
Metrics Income Opportunities Trust
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19
(b) Financial Instruments
(i) Classification
> Assets
The Fund classifies its investments based on its business
model for managing those financial assets and the contractual
cash flow characteristics of the financial assets. The Fund’s
portfolio of financial assets is managed and performance is
evaluated on a fair value basis in accordance with the Fund’s
documented investment strategy. The Fund’s policy is for the
Responsible Entity to evaluate the information about these
financial assets on a fair value basis together with other
related financial information.
The Fund holds financial assets, comprising of unlisted unit
trusts, which are measured at fair value through profit or loss.
The Fund holds financial assets including loans which are
classified and measured at amortised cost, as the loans are
held to maturity and to collect contractual cash flows.
> Liabilities
The Fund holds financial liabilities comprising
of distribution and fee payables, which are classified and
measured at amortised cost.
(ii) Recognition/derecognition
The Fund recognises financial assets and financial liabilities
on the date it becomes party to the contractual agreement
(trade date) and recognises changes in fair value of the
financial assets or financial liabilities from this date.
Investments are derecognised when the right to receive
cash flows from the investments have expired or the
Fund has transferred substantially all risks and rewards
of ownership.
Any gains or losses arising on derecognition of the asset
held at fair value through profit and loss (calculated as the
difference between the disposal proceeds and the carrying
amount of the asset) are included in the statement of
comprehensive income in the year the asset is derecognised
as realised gains or losses on financial instruments. The Fund
derecognises a financial liability when the obligation under
the liability is discharged, cancelled or expired.
(iii) Measurement
> Financial assets and liabilities held at fair value
through profit or loss
At initial recognition, the Fund measures financial assets
and financial liabilities at fair value. Transaction costs of
financial assets and financial liabilities carried at fair value
through profit or loss are expensed in the Statement of
comprehensive income.
Subsequent to initial recognition, all financial assets and
financial liabilities at fair value through profit or loss are
measured at fair value. 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. Fair value is calculated as the present
value of expected cash flows arising from the asset having
regard to current market prices and returns for assets of
comparable credit quality, terms and contracted remaining
term to maturity. Gains and losses arising from changes in the
fair value of the financial assets or financial liabilities at fair
value through profit or loss category are presented in the
Statement of comprehensive income within ‘net gains/(losses)
on financial instruments at fair value through profit or loss’
in the period in which they arise.
Further details on how the fair value of financial instruments
are determined are disclosed in note 4.
Management considers that the carrying amount of other
financial assets (comprised of cash and cash equivalents,
loans and receivables) approximate fair value.
Other financial liabilities are initially measured at fair value
and subsequently at amortised cost. Management considers
the carrying amount of payables approximate fair value.
(iv) Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount
reported in the Statement of financial position when there is
a legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis, or realise
the asset and settle the liability simultaneously.
Metrics Income Opportunities Trust
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20
(v) Impairment
At each reporting date, the Fund shall measure the loss
allowance on financial assets at amortised cost (cash, loans
and receivables) at an amount equal to the lifetime expected
credit losses (ECL) if the credit risk has increased significantly
since initial recognition. If, at the reporting date, the credit
risk has not increased significantly since initial recognition,
the Fund shall measure the loss allowance at an amount
equal to 12‑month ECL . Significant financial difficulties of
the counter party, probability that the counter party will enter
insolvency or require financial reorganisation, and default in
payments are all considered indicators that a loss allowance
may be required. If the credit risk increases to the point that
it is considered to be credit impaired, interest income will
be calculated based on the net carrying amount adjusted
for the loss allowance. A significant increase in credit risk is
defined by management as any contractual payment which is
more than 30 days past due. Any contractual payment which
is more than 90 days past due is considered credit impaired.
(c) Net assets attributable to unitholders
Units in the Fund are listed on the ASX and traded by
unitholders and are classified as equity. The units can be
traded on the ASX at any time for cash based on listed price.
While the Fund is a listed investment and liquidity is generally
expected to exist in the secondary market (ASX), there are
no guarantees that an active trading market with sufficient
liquidity will be available.
The units issued by the Fund meet the requirements
of AASB 132 for classification as equity.
(d) Cash and cash equivalents
Cash comprises cash on hand, deposits held at call with
financial institutions. Cash equivalents are short‑term, highly
liquid investments with an original maturity of three months or
less that are readily convertible into known amounts of cash,
are subject to an insignificant risk of changes in value and are
held for the purpose of meeting short‑term cash commitments
rather than for investment or other purposes.
(e) Investment income
(i) Interest income
The Fund generates interest income from its investments in
financial assets, loans, and cash investments. Interest income
from financial assets at amortised cost is recognised using
the effective interest method and includes interest from cash
and cash equivalents. Interest income is recognised daily as
it accrues, taking into account the actual interest rate on the
financial asset and is recognised in profit or loss.
(ii) Distribution income
Distribution income from financial assets at fair value through
profit or loss is recognised in the Statement of comprehensive
income within distribution income when the Fund’s right to
receive payments is established.
(f) Expenses
All expenses, including Responsible Entity fees, investor
equalisation expense (refer to Note 5 for further detail) and
administrative expenses, are recognised in the Statement of
comprehensive income on an accruals basis. Interest expense
is recognised in the Statement of comprehensive income
as it accrues, using the effective interest method.
(g) Income tax
The Fund is not subject to income tax provided the taxable
income of the Fund is attributed in full to its unitholders
each financial year either by way of cash or reinvestment.
Unitholders are subject to income tax at their own marginal
tax rates on amounts attributable to them.
(h) Distributions
In accordance with the Fund’s Constitution, the Fund may
attribute its distributable (taxable) income, and any other
amounts determined by the Responsible Entity, to unitholders
by cash or reinvestment. The distributions are recognised
in the Statement of changes in equity as equity.
Financial instruments at fair value may include unrealised
capital gains. Should such a gain be realised, that portion of
the gain that is subject to capital gains tax will be distributed
so that the Fund is not subject to capital gains tax.
Metrics Income Opportunities Trust
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21
Realised capital losses are not distributed to unitholders
but are retained in the Fund to be offset against any realised
capital gains. If realised capital gains exceed realised capital
losses, the excess is distributed to unitholders.
In accordance with the Fund’s Constitution, distributions are
determined by the Responsible Entity but must be at least
$1 each financial year. Distributions can be settled either
by cash or reinvestment. Distributions to unitholders are
disclosed in the Statement of changes in equity.
(i) Increase/decrease in net assets attributable to unitholders
Income not distributed is included in net assets attributable
to unitholders. As the Fund’s units are classified as equity,
movements in net assets attributable to unitholders are
recognised in the Statement of changes in equity.
(j) Receivables
Loans and receivables are measured initially at fair value
plus transaction costs and subsequently at amortised cost;
using the effective interest rate method, less impairment
losses if any. In order to be measured at amortised cost, the
loan or receivable must meet both the following conditions;
(i) it is held within a business model whose objective is to
hold assets to collect contractual cashflows, and (ii) its
contractual terms give rise on specified dates to cash flows
that are solely payments of principal and interest (“SPPI”) on
the principal amount outstanding. Such assets are reviewed
at each reporting date to determine whether there is
objective evidence of impairment.
At each reporting date, the Fund shall measure the loss
allowance on receivables at an amount equal to the lifetime
expected credit losses if the credit risk has increased
significantly since initial recognition. If, at the reporting date,
the credit risk has not increased significantly since initial
recognition, the Fund shall measure the loss allowance
at an amount equal to 12‑month expected credit losses.
Receivables may include amounts for interest and trust
distributions. Interest is accrued at each dealing date
in accordance with policy set out in note 2(e) above.
Trust distributions are accrued when the right to receive
payment is established. Amounts are generally received
within 30 days of being recorded as receivables.
Receivables are measured at their nominal amounts.
Receivables also include such items as Reduced Input
Tax Credits (“RITC”).
Collectability of trade receivables is reviewed on an ongoing
basis. Debts which are known to be uncollectible are written
off by reducing the carrying amount directly. An allowance
account (provision for impairment of trade receivables) is
used when there is objective evidence that the Fund will not
be able to collect all amounts due according to the original
terms of the receivables. Significant financial difficulties of
the debtor, probability that the debtor will enter insolvency
or require financial reorganisation, and default or delinquency
in payments (more than 30 days overdue) are considered
indicators that the trade receivable is impaired. The amount
of the impairment allowance is the difference between the
asset’s carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest
rate. Cash flows relating to short‑ term receivables are not
discounted if the effect of discounting is immaterial.
The amount of the impairment loss, if any, is recognised in
the Statement of comprehensive income within other expenses.
When a trade receivable for which an impairment allowance
had been recognised becomes uncollectible in a subsequent
period, it is written off against the allowance account.
Subsequent recoveries of amounts previously written
off are credited against other expenses in the Statement
of comprehensive income.
(k) Payables
Payables include liabilities and accrued expenses owed
by the Fund which are unpaid as at the end of the reporting
year. Payables may include amounts for redemptions of
units in the Fund where settlement has not yet occurred.
The distribution amount payable to unitholders as at the
end of each reporting year is recognised separately in
the Statement of financial position as a payable when
determined by the Responsible Entity in accordance to
the Fund’s Constitution.
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(l) Applications and redemptions
The Fund is a listed investment trust, which trades on the
Australian Securities Exchange (“ASX”). Accordingly, the
Fund does not process direct applications or redemptions for
Unitholders. All transactions with unitholders are conducted
on market or via other capital raising activities.
(m) Goods and services tax (“GST”)
The GST incurred on the costs of various services provided
to the Fund by third parties such as audit fees, custodian
services and management fees have been passed onto the
Fund. The Fund qualifies for RITC, hence Management fees,
Administration and custody fees and other expenses have
been recognised in the Statement of comprehensive income
net of the amount of GST recoverable from the Australian
Taxation Office (“ATO”). Accounts payable are inclusive of
GST. The net amount of GST recoverable from the ATO is
included in receivables in the Statement of financial position.
Cash flows relating to GST are included in the Statement
of cash flows on a gross basis.
(n) Use of estimates and judgement
The Fund makes estimates and assumptions that affect
the reported amounts of assets and liabilities within the next
financial year. Estimates are continually evaluated and are
based on historical experience and other factors, including
expectations of future events that are believed to be
reasonable under the circumstances.
For the majority of the Fund’s financial instruments, quoted
market prices are readily available. However, certain financial
instruments, including unquoted securities are fair valued
using valuation techniques determined by the Investment
Manager, in accordance with the valuation procedures
approved by the Responsible Entity. Where valuation
techniques (for example, pricing models) are used to determine
fair values, they are validated and periodically reviewed
by experienced personnel of the Investment Manager,
independent of the area that created them.
Models use observable data, to the extent practicable.
However, areas such as credit risk (both own and
counterparty), volatilities and correlations require
management to make estimates. Changes in assumptions
about these factors could affect the reported fair value
of financial instruments.
For certain other balances reported on the Statement of
financial position, including amounts due from/to brokers,
accounts payable and accrued expenses, the carrying
amount is the approximate fair value due to the immediate
or short‑term nature of these financial instruments.
(o) Rounding of amounts
The Fund is an entity of a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191 issued by the Australian Securities and
Investments Commission (“ASIC”) relating to the “rounding
off” of amounts in the financial statements. Amounts in the
financial statements have been rounded to the nearest
thousand dollars in accordance with the ASIC Corporations
Instrument, unless otherwise indicated.
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3 FINANCIAL RISK MANAGEMENT
(a) Overview
The Fund’s activities expose it to a variety of financial risks.
The management of these risks is undertaken by the Fund’s
Investment Manager who has been appointed by the
Responsible Entity under an Investment Management
Agreement to manage the Fund’s assets in accordance
with the Investment Objective and Strategy.
The Responsible Entity has in place a framework
which includes:
> The Investment Manager providing the Responsible
Entity with regular reports on their compliance with
the Investment Management Agreement;
> Completion of regular reviews on the Service Provider
which may include a review of the Investment Manager’s
risk management framework to manage the financial
risks of the Fund; and
> Regular reporting on the liquidity of the Fund in accordance
with the Fund’s Liquidity Risk Management Statement.
The Fund’s Investment Manager has in place a framework
to identify and manage the financial risks in accordance
with the investment objective and strategy. This includes an
investment due diligence process and on‑going monitoring
of the investments in the Fund. Specific controls the
Investment Manager applies to manage the financial risks
are detailed under each risk specified below and in the
Product Disclosure Statement (“PDS”) available on the
Investment Manager’s website and on the ASX.
(b) Market risk
Market risk is the risk that the fair value or future cash flows
of a financial instrument will fluctuate due to the changes
in market variables such as interest rates, foreign exchange
rates and equity prices.
(i) Price risk
Market price risk is the risk that the value of a financial
instrument will fluctuate as a result of changes in market
prices, whether those changes are caused by factors
specific to the individual instrument or factors affecting
all instruments in the market.
The Fund invests in corporate loans and debt securities
indirectly through its investment in MCP Wholesale Income
Opportunities Trust. As a result, the Investment Manager
manages this risk through the daily review of the carrying
value of each of the assets held by the Wholesale Funds
having regard to the market prices of similar assets being
transacted in both the primary and secondary market for
assets of similar credit quality, tenor and loan purpose.
Any adjustment to the fair value of the investment is
reflected through profit or loss.
As at year end, the overall market exposures were as follows:
FINANCIAL ASSETS
AS AT
30 JUNE 2021
FAIR VALUE
$’000
AS AT
30 JUNE 2020
FAIR VALUE
$’000
MCP Wholesale Income
Opportunities Trust
342,950
338,640
Investment Manager
loan asset
7,288
7,716
(ii) Interest rate risk
Interest rate risk is the risk that the value of a financial
instrument will fluctuate due to changes in market
interest rates.
The Fund invests (through the MCP Wholesale Income
Opportunities Trust) primarily in floating rate loans meaning
that as the underlying base rate rises and falls, the relative
attractiveness to other instruments may change.
The Investment Manager believes there is a strong
correlation between the RBA Cash Rate and the base rates
upon which loans are priced. Absolute returns on loans
therefore rise and fall largely in correlation with the RBA
Cash Rate.
Interest rate duration risk is minimised as individual
borrowers under loan contracts generally have the flexibility
to select interest rate reset periods from 30 to 180 days.
In addition to the ongoing short‑term re‑setting of the market
benchmark interest rate most loan facilities incorporate
a contractual mechanism to re‑price based on migration
of credit quality over the term of the facility. This is known
as a credit margin pricing grid and incorporates changes
to the credit margin based on certain key credit metrics.
The Fund’s interest‑bearing financial assets and liabilities
expose it to risks associated with the effects of fluctuations
in the prevailing levels of market interest rates on its financial
position and cash flows.
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The tables below summarise the Fund’s exposure to interest rate risk.
AT 30 JUNE 2021
WEIGHTED
AVERAGE
EFFECTIVE
INTEREST
RATE
%
FLOATING
INTEREST
RATE
$’000
FIXED
INTEREST
RATE
$’000
NON-
INTEREST
BEARING
$’000
TOTAL
$’000
Financial assets
Cash and cash equivalents
0.15%
1,483
–
–
1,483
Distributions receivable
–
–
3,262
3,262
GST and other receivables
–
–
89
89
Financial assets
6%*
–
7,288
342,950
350,238
Total financial assets
1,483
7,288
346,301
355,072
Financial liabilities
Distributions payable
–
–
2,864
2,864
Responsible Entity’s fees payable
–
–
107
107
Management fees payable
–
–
298
298
Other payables
–
–
73
73
Total financial liabilities
–
–
3,342
3,342
Net exposure
1,483
7,288
342,959
351,730
AT 30 JUNE 2020
Financial assets
Cash and cash equivalents
0.66%
1,083
–
–
1,083
Distributions receivable
–
–
3,703
3,703
GST receivable
–
–
86
86
Financial assets
6%*
–
7,716
338,640
346,356
Total financial assets
1,083
7,716
342,429
351,228
Financial liabilities
Distributions payable
–
–
3,341
3,341
Responsible Entity’s fees payable
–
–
106
106
Management fees payable
–
–
314
314
Other payables
–
–
83
83
Total financial liabilities
–
–
3,844
3,844
Net exposure
1,083
7,716
338,585
347,384
* Weighted effective interest rate only applies to loan assets.
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At 30 June 2021, should interest rates have increased/
decreased by 25 basis points (2020: 25 basis points) with
all other variables remaining constant, the increase/decrease
in net assets attributable to unitholders and profit/loss for
the year would amount to approximately +/– $3,708
(2020: +/–$21,682)*.
(iii) Currency risk
Currency risk is the risk that the value of financial instruments
will fluctuate due to changes in foreign exchange rates.
As at 30 June 2021 the Fund did not hold any assets or
liabilities denominated in currencies other than the Australian
Dollar and therefore was not exposed to any foreign
exchange risk (2020: Nil).
(c) Credit risk
Credit risk is the risk that an issuer or counterparty will
be unable or unwilling to pay amounts in full when due.
The Investment Manager manages credit risk by undertaking
a detailed due diligence process prior to entering into
transactions with counterparties and ongoing daily
monitoring of the credit exposures.
The initial due diligence process is detailed in the
Operational and Investment Policies of the Investment
Manager and addresses aspects relevant to an assessment
of the credit risk and includes risk assessments of both a
qualitative and quantitative nature. Pre‑lending due diligence
may include independent experts reports provided to the
Investment Manager covering matters such as commercial/
industry risks, accounting and tax reports, legal due diligence,
property valuation, technical risk reports and environmental
reports. As part of the initial due diligence risk assessment
process key risks are identified and the key determinants of
future cash flows and servicing capacity of the counterparty
are identified. Scenario planning and sensitivity testing is
undertaken to model the impact on counterparty credit risk
under a range of adverse events. Financial analysis and
peer group benchmarking is undertaken to determine the
appropriate credit metrics and a credit rating identified and
allocated. The Investment Manager uses a range of proprietary
credit rating data and analysis in addition to credit research
materials from third party providers including credit rating
agencies to analyse and monitor counterparty credit risk.
* Amounts have not been rounded.
The Investment Manager further seeks to mitigate credit risk
by adhering to the investment parameters of the Fund which
have been designed in a manner that seeks to mitigate credit
risk by ensuring the portfolio is diversified by industry,
counterparty, credit quality, maturity and loan market.
The Investment Manager maintains active engagement with
other market participants and meets regularly and receives
regular reporting from banks, borrowers and ratings agencies
and uses this reporting to manage and monitor performance
of financial assets held by the Fund. Such reporting includes
macro‑economic risk and analysis reporting.
The Investment Manager is provided with ongoing
compliance reporting from borrowers which typically includes
the provision of covenant compliance certificates, financial
accounts, operational management reporting and forward
financial projections and ongoing reporting of performance
against budget projections.
The Investment Committee of the Investment Manager aims
to meet weekly to monitor reporting and financial obligations
of counterparties, reconciles payment of interest and fees
and reviews credit, market and liquidity risks of each financial
asset held in the portfolio. Any payment arrears is monitored
on a daily basis and reported to the Investment Committee.
The Fund’s exposure to credit risk for cash and cash
equivalents is low as all counterparties have a rating of
A‑1+ (as determined by public ratings agencies such as
Standard & Poor’s, Moody’s or Fitch) or higher. The Fund
is also exposed to credit risk on corporate loans and debt
securities through its investments in MCP Wholesale Income
Opportunities Trust.
Corporate loans and debt securities are rated by the
Investment Manager in accordance with its ratings
methodology, and may also be rated by public ratings
agencies such as Standard & Poor’s, Moody’s or Fitch.
Where a corporate loan or debt security is publicly rated,
it is the Investment Manager’s policy to apply the lower of a
public credit rating or the Investment Manager’s own credit
rating. The Fund’s exposure to credit risk is monitored and
managed on a daily basis, and credit ratings are reviewed
and confirmed as part of the Investment Manager’s
investment processes. Credit risk is managed through
daily investment analysis (reporting, covenant compliance,
management and market engagement) as well as through
portfolio construction. The Fund has defined targets and
Metrics Income Opportunities Trust
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limits based on both individual counterparty credit quality
as well as total aggregated credit exposure levels.
By limiting credit risk exposure to individual investments
based on credit quality and also limiting the total aggregated
exposure to investments of a defined credit quality, the
Fund’s acceptable level of credit risk is defined and
controlled. Credit risk management is ongoing and
the Investment Manager adopts an active approach
to monitoring and managing these risks.
The Investment Manager adheres to the portfolio
investment parameters set out in the offer document of
the Fund. Credit risk is managed with regard to individual
counterparty credit quality and single counterparty exposure
limits. The Investment Manager seeks to manage portfolio
risks by diversifying risks with portfolio construction adhering
to diversification by credit quality, individual counterparty,
industry and contracted maturity profile of assets held within
the portfolio. The Investment Manager seeks to manage risk
by investing in shorter dated credit assets with the expectation
that the weighted tenor to contracted maturity is within the
target portfolio parameters. The portfolio construction and
investment management processes adopted by the Investment
Manager are implemented with the expectation of seeking
to reduce Fund exposure to both credit and market risks.
The Fund provided a working capital loan to the Investment
Manager. The Responsible Entity has a right of recourse
against the Investment Manager for the amounts owed under
the Manager Loan. The Investment Manager may assign its
obligations under the Investment Manager Loan to an entity
that is controlled by the Investment Manager or a person that
is under the common control of the Investment Manager.
(d) Liquidity risk
Liquidity risk is the risk that the Fund may not be able to
generate sufficient cash resources to settle its obligations
in full as they fall due and can only do so on terms that are
materially disadvantageous.
As the units are held in a listed investment trust, the Fund is
not exposed to liquidity risk from Unitholder redemptions.
The table below analyses the Fund’s non‑derivative financial
liabilities and net settled derivative financial liabilities into
relevant maturity groupings based on the remaining period
to contractual maturity, as of the reporting period end.
The amounts in the table are the contractual undiscounted
cash flows. Balances that are due within 12 months equal
their carrying balances as the impact of discounting is
not significant.
AT 30 JUNE 2021
LESS THAN
1 MONTH
$’000
1‑6
MONTHS
$’000
6‑12
MONTHS
$’000
OVER
12 MONTHS
$’000
NO STATED
MATURITY
$’000
Distributions payable
2,864
–
–
–
–
Responsible Entity’s fees payable
107
–
–
–
–
Management fees payable
298
–
–
–
–
Other payables
73
–
–
–
–
Total financial liabilities
3,342
–
–
–
–
AT 30 JUNE 2020
Distributions payable
3,341
–
–
–
–
Responsible Entity’s fees payable
106
–
–
–
–
Management fees payable
314
–
–
–
–
Other payables
83
–
–
–
–
Total financial liabilities
3,844
–
–
–
–
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4 FAIR VALUE MEASUREMENTS
The Fund measures and recognises the following assets
and liabilities at fair value on a recurring basis.
> Financial assets/liabilities at fair value through profit
or loss (‘FVTPL”) (see note 5)
The Fund has no assets or liabilities measured at fair value
on a non‑recurring basis in the current reporting year.
AASB 13 Fair Value Measurement requires disclosure of fair
value measurements by level of the following fair value
hierarchy:
> quoted prices (unadjusted) in active markets for identical
assets or liabilities (level 1);
> inputs other than quoted prices included within level 1
that are observable for the asset or liability, either directly
or indirectly (level 2); and
> inputs for the asset or liability that are not based on
observable market data (unobservable inputs) (level 3).
(i) Fair value in an active market (level 1)
The fair value of financial assets and liabilities traded in
active markets is based on their quoted market prices at the
end of the reporting year without any deduction for estimated
future selling costs.
The Fund values its investments and derivatives in
accordance with the accounting policies set out in note 2
to the financial statements. For the majority of investments,
information provided by independent pricing services is
relied upon for valuation of investments.
The quoted market price used to fair value financial
assets and financial liabilities held by the Fund is the
last‑traded prices.
A financial instrument is regarded as quoted in an active
market if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing
service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an
arm’s length basis.
An active market is a market in which transactions for the
asset or liability take place with sufficient frequency and
volume to provide pricing information on an ongoing basis.
(ii) Fair value in an inactive or unquoted market
(Level 2 and Level 3)
The fair value of financial assets and liabilities that are not
exchange‑traded in an active market is determined using
valuation techniques. These include the use of recent arm’s
length market transactions, reference to the current fair value
of a substantially similar other instrument, discounted cash
flow techniques, option pricing models or any other valuation
technique that provides a reliable estimate of prices obtained
in actual market transactions. If all significant inputs required
to fair value an instrument are observable, the instrument is
included in level 2. If one or more of the significant inputs
is not based on observable market data, the instrument is
included in level 3. This may be the case for certain corporate
debt securities and unlisted unit trusts with suspended
applications and withdrawals.
Where discounted cash flow techniques are used, estimated
future cash flows are based on management’s best estimates
and the discount rate used is a market rate at the end of the
reporting year applicable for an instrument with similar terms
and conditions.
For other pricing models, inputs are based on market data
at the end of the reporting year.
Some of the inputs to these models may not be market
observable and are therefore estimated based on assumptions.
The output of a model is always an estimate or approximation
of a value that cannot be determined with certainty, and
valuation techniques employed may not fully reflect all factors
relevant to the positions the Fund holds. Valuations are
therefore adjusted, where appropriate, to allow for additional
factors including liquidity risk and counterparty risk.
The carrying value less impairment provision of other
receivables and payables are assumed to approximate their
fair values. The fair value of financial liabilities for disclosure
purposes is estimated by discounting the future contractual
cash flows at the current market interest rate that is available
to the Fund for similar financial instruments.
The determination of what constitutes ’observable’ requires
significant judgment by management. Management considers
observable data to be that market data that is readily available,
regularly distributed or updated, reliable and verifiable, not
proprietary and provided by independent sources that are
actively involved in the relevant market.
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Recognised fair value measurements
The following table presents the Fund’s financial assets and liabilities according to the fair value hierarchy as at 30 June 2021
and 30 June 2020.
AT 30 JUNE 2021
LEVEL 1
$’000
LEVEL 2
$’000
LEVEL 3
$’000
TOTAL
$’000
Financial assets at fair value through profit or loss
MCP Wholesale Income Opportunities Trust
–
342,950
–
342,950
Financial assets not measured at fair value
Investment Manager loan asset
–
–
7,288
7,288
Total
–
342,950
7,288
350,238
AT 30 JUNE 2020
Financial assets at fair value through profit or loss
MCP Wholesale Income Opportunities Trust
–
338,640
–
338,640
Financial assets not measured at fair value
Investment Manager loan asset
–
–
7,716
7,716
Total
–
338,640
7,716
346,356
(iii) Transfers between levels
The Fund’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting year.
There were no transfers between the levels in the fair value hierarchy for the years ended 30 June 2021 and 30 June 2020.
(iv) Fair value measurements using significant unobservable inputs (level 3)
The following tables present the movement in level 3 instruments, by class of financial instruments, for the years ended
30 June 2021 and 30 June 2020.
YEAR ENDED JUNE 30, 2021
INVESTMENT
MANAGER
LOAN ASSETS
$’000
TOTAL
$’000
Opening balance
7,716
7,716
IEE
(879)
(879)
Interest accrued
451
451
Closing balance
7,288
7,288
YEAR ENDED JUNE 30, 2020
Opening balance
7,519
7,519
Loan provided to Investment Manager
570
570
IEE
(835)
(835)
Interest accrued
462
462
Closing balance
7,716
7,716
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(v) Valuation processes
Investment Manager loan assets are classified and
measured at amortised cost.
(vi) Fair values of other financial instruments
The Fund did not hold any other financial instruments which
were not measured at fair value in the Statement of financial
position. Due to their short‑term nature, the carrying amounts
of receivables and payables are assumed to approximate
fair value. Net assets attributable to unitholders’ carrying
value may differ from its par value (deemed to be redemption
price for individual units) due to differences in valuation
inputs. This difference is not material in the current or
prior year.
5 FINANCIAL ASSETS
AS AT
30 JUNE 2021
$’000
AS AT
30 JUNE 2020
$’000
Financial assets at fair value through profit or loss
MCP Wholesale Income Opportunities Trust
342,950
338,640
Financial assets at amortised cost
Investment Manager loan asset
7,288
7,716
Total
350,238
346,356
> Investment Manager loan asset
The Fund provided a working capital loan to the
Investment Manager. Over a period of ten years the
Investment Manager will repay the Investment Manager
Loan, including payment of interest on the loan which
will be interest income to the Fund.
> Investor equalisation expense (IEE)
In consideration for the Investment Manager providing
advisory and management services to the Fund under
the Investment Management Agreement, the Investment
Manager is paid an IEE. The IEE is a monthly expense
to the Fund calculated based on NAV and payable to
the Investment Manager for a period of 10 years from
16 April 2019.
An overview of the risk exposure relating to financial assets
at fair value through profit or loss is included in Note 3.
While the COVID-19 pandemic has caused uncertainty and
market volatility during the period, the Responsible Entity
has continued to follow its established policies and process
for managing risk, determining fair values and classifying
assets and liabilities in the fair value hierarchy for disclosure
purposes as at the reporting date.
6 STRUCTURED ENTITIES
The Fund applies the investment entity exception to
consolidation available under AASB10 Consolidated
Financial Statements and measures its subsidiaries
at fair value through profit or loss.
A structured entity is an entity that has been designed
so that voting or similar rights are not the dominant factor
in deciding who controls the entity, and the relevant activities
are directed by means of contractual arrangements.
An interest in a structured entity is any form of contractual
or non‑contractual involvement which creates variability in
returns arising from the performance of the entity for the
Fund. The Fund considers investments in managed investment
funds (the “Funds”) to be structured entities. The Fund invests
in Funds for the purpose of capital appreciation and/or
earning investment income.
The exposure to investments in related Funds at fair value,
and any related amounts recognised in the Statement of
comprehensive income is disclosed at Note 12 to the
financial statements.
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The exposure to investments in related Funds at fair value that the Fund does not consolidate but in which it holds an interest
is disclosed in the following table:
FAIR VALUE OF INVESTMENTS
AS AT
INTEREST HELD
AS AT
30 JUNE 2021
$’000
30 JUNE 2020
$’000
30 JUNE 2021
%
30 JUNE 2020
%
MCP Wholesale Income Opportunities Trust *
342,950
338,640
100
100
* The principal place of business is Level 18 Angel Place, 123 Pitt Street Sydney NSW 2000.
* Amounts have not been rounded.
The Fund has exposures to structured entities through its
trading activities. The Fund typically has no other involvement
with structured entities other than the securities it holds as
part of trading activities and its maximum exposure to loss is
restricted to the carrying value of the asset. The Fund does
not have current commitments or intentions and contractual
obligations to provide financial or other support to the
structured entities. Exposure to trading assets are managed
in accordance with financial risk management practices as
set out in note 3(b), which includes an indication of changes
in risk measures compared to prior year.
During the year ended 30 June 2021, total gains/(losses)
incurred on investments in the Funds were $3,510,216
(2020: gain $944,063). The Fund also earned distribution
income of $26,733,000 (2020: $28,012,400) as a result
of its interests in the Funds*.
7 NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
Under AASB 132 Financial instruments: Presentation, puttable
financial instruments meet the definition of a financial liability
to be classified as equity where certain strict criteria are
met. The Fund does not have a contractual obligation to
pay distributions to unitholders. Therefore, the net assets
attributable to unitholders of the Fund meet the criteria
set out under AASB 132 and are classified as equity.
Movements in number of units and net assets attributable to unitholders during the year were as follows:
YEAR ENDED
30 JUNE 2021
YEAR ENDED
30 JUNE 2020
NO. ‘000
$’000
NO. ‘000
$’000
Opening balance
173,111
347,384
150,000
300,237
Capital raising
–
–
22,500
45,000
Units issued upon reinvestment of distributions
410
829
611
1,227
Distributions paid and payable
–
(22,224)
–
(23,758)
Profit/(loss) for the period
–
25,741
–
24,678
Closing balance
173,521
351,730
173,111
347,384
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As stipulated within the Fund’s Constitution, each unit
represents a right to an individual share in the Fund and does
not extend to a right to the underlying assets of the Fund.
There are no separate classes of units and each unit has the
same rights attaching to it as all other units of the Fund.
Capital risk management
The Fund is a closed‑end vehicle and accordingly there are
no redemptions by investors. Instead, while the Fund is listed,
unitholders who wish to exit their investment will be able to
do so via the ASX.
Units in the Fund are listed on the ASX and traded by
unitholders. The units can be traded on the ASX at any time
for cash based on the listed price. While the Fund is listed
and liquidity is generally expected to exist in the secondary
market (ASX), there are no guarantees that an active trading
market with sufficient liquidity will be available. The Fund is
not subject to any externally imposed capital requirements.
The Fund considers its net assets attributable to unitholders
as capital, notwithstanding net assets attributable to
unitholders are classified as equity.
8 DISTRIBUTIONS TO UNITHOLDERS
Distributions are determined by reference to the net taxable income of the Fund, as determined by the Responsible Entity.
The distributions for the year were as follows:
YEAR ENDED
30 JUNE 2021
YEAR ENDED
30 JUNE 2020
$’000
CPU*
$’000
CPU*
Distributions
31 July
1,784
1.03
–
–
31 August
1,472
0.85
–
–
30 September
1,594
0.92
5,355
3.57
31 October
1,525
0.88
1,503
1.00
30 November
1,646
0.95
2,160
1.25
31 December
2,149
1.24
1,884
1.09
31 January
2,843
1.64
1,781
1.03
28 February
1,439
0.83
1,833
1.06
31 March
1,752
1.01
2,318
1.34
30 April
1,561
0.90
1,852
1.07
31 May
1,595
0.92
1,731
1.00
30 June (payable)
2,864
1.65
3,341
1.93
Total
22,224
12.82
23,758
14.34
* Distribution is expressed as the cents per unit amount in Australian Dollars.
Metrics Income Opportunities Trust
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32
9 EARNINGS PER UNIT
Earnings per unit amounts are calculated by dividing net
profit/(loss) attributable to unitholders before distributions
by the weighted average number of units outstanding
during the year.
YEAR ENDED
30 JUNE 2021
YEAR ENDED
30 JUNE 2020
Operating profit/(loss)
attributable to unitholders
($’000)
25,741
24,678
Weighted average number
of units on issue (‘000)
173,327
165,124
Basic and diluted earnings
per unit (cents)
14.85
14.94
10 RECONCILIATION OF PROFIT/(LOSS)
TO NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES
(a) Reconciliation of operating profit/(loss) to net
cash inflow/(outflow) from operating activities
YEAR ENDED
30 JUNE 2021
$’000
YEAR ENDED
30 JUNE 2020
$’000
Profit/(loss) for the period
25,741
24,678
Net change in financial assets
(3,510)
(944)
Net change in receivables
441
(271)
Net change in payables
397
408
Net cash inflow/(outflow)
from operating activities
23,069
23,870
(b) Components of cash and cash equivalents
Cash as at the end of the financial period as shown in the
Statement of cash flows is reconciled to the Statement of
financial position as follows:
YEAR ENDED
30 JUNE 2021
$’000
YEAR ENDED
30 JUNE 2020
$’000
Cash and cash equivalents
1,483
1,083
Total
1,483
1,083
(c) Non‑cash financing activities
YEAR ENDED
30 JUNE 2021
$’000
YEAR ENDED
30 JUNE 2020
$’000
During the period,
the following distribution
payments were satisfied
by the issue of units
under the distribution
reinvestment plan
829
1,227
Total
829
1,227
As described in note 2(i), income not distributed is included
in net assets attributable to unitholders. The change in this
amount each year (as reported in (a) above) represents a
non‑cash financing cost as it is not settled in cash until
such time as it becomes distributable.
Metrics Income Opportunities Trust
Annual Report
33
11 AUDITOR’S REMUNERATION
During the year, the following fees were paid or payable
for services provided by the auditors of the Fund:
YEAR ENDED
30 JUNE 2021
$
YEAR ENDED
30 JUNE 2020
$
KPMG
Audit and other
assurance services
Audit and review of
financial statements
29,000
30,000
Total remuneration
of KPMG
29,000
30,000
PwC
Audit and other
assurance services
Audit and review of the
annual compliance plan
2,585
2,585
Total remuneration
of PwC
2,585
2,585
Total auditor remuneration
31,585
31,585
12 RELATED PARTY TRANSACTIONS
For the purpose of these financial statements, parties
are considered to be related to the Fund if they have the
ability, directly or indirectly, to control or exercise significant
influence over the Fund in making financial and operating
disclosures. Related parties may be individuals or
other entities.
Responsible Entity
The Responsible Entity of the Metrics Income Opportunities
Trust is The Trust Company (RE Services) Limited
(ABN 45 003 278 831, AFSL 235150). The Responsible
Entity is a wholly owned subsidiary in the Perpetual Limited
Group (ASX: PPT).
Custodian
Perpetual Corporate Trust Limited, a related party of the
Responsible Entity, provides custody services to the Fund.
Amounts presented under the Responsible Entity fees
include fees paid for Responsible Entity services and
custody services.
Investment Manager
The Investment Manager of the Fund is Metrics Credit
Partners Pty Ltd.
(a) Directors
Key management personnel includes persons who were
Directors of the Responsible Entity at any time during the
financial year and are shown below. Directors were in
office for this entire year except where stated otherwise:
NAME
DATE OF APPOINTMENT/RESIGNATION
Glenn Foster
Resigned as Director on
23 October 2020
Appointed as a Non-executive
Director on 1 February 2021
Richard McCarthy
Director
Simone Mosse
Director
Vicki Riggio
Director
Phillip Blackmore
Alternate Director for Vicki Riggio
(b) Other key management personnel
There were no other persons responsible for planning,
directing and controlling the activities of the Fund,
directly or indirectly during the financial year.
Key management personnel unit holdings
During or since the end of the year, none of the Directors or
Director related entities held units in the Fund, either directly,
indirectly or beneficially. Neither the Responsible Entity nor
its affiliates held units in the Fund at 30 June 2021 (2020: nil).
Key management personnel compensation
Key management personnel do not receive any remuneration
directly from the Fund. They receive remuneration from
a related party of the Responsible Entity in their capacity
as Directors or employees of the Responsible Entity or its
related parties. Consequently, the Fund does not pay any
compensation to its key management personnel. Payments
made from the Fund to the Responsible Entity do not include
any amounts attributable to the compensation of key
management personnel.
Metrics Income Opportunities Trust
Annual Report
34
Key management personnel loan disclosures
The Fund has not made, guaranteed or secured, directly
or indirectly, any loans to the key management personnel
or their personally related entities at any time during the
reporting year.
Other transactions within the Fund
Apart from those details disclosed in this note, no key
management personnel have entered into a material contract
with the Fund since the end of the previous financial year and
there were no material contracts involving Director’s interests
existing at 30 June 2021 (2020: nil).
Responsible Entity’s fees and other transactions
(i) Responsible Entity fee
This fee is charged by the Responsible Entity for managing
the Fund and making it available to investors. Fees payable
to the Responsible Entity are calculated on the net asset value
of the Fund and accrued daily and paid quarterly in arrears
from the assets of the Fund and reflected in the daily unit price.
(ii) Investment Manager fee
This fee is charged by the Investment Manager for services
provided under the Investment Management Agreement.
1.03% per annum of the Fund’s net asset value is calculated
and accrued daily and paid monthly in arrears from the
Fund’s assets.
(iii) Indirect costs
Indirect costs are any amounts that the Responsible
Entity knows or where required, reasonably estimates,
will reduce the Fund’s returns that are paid from the Fund’s
assets (other than the Responsible Entity fee, recoverable
expenses and transactional and operational costs) or that
are paid from the assets of any interposed vehicle (such as
the MCP Wholesale Income Opportunities Trust or wholesale
funds) in which the Fund may invest.
All related party transactions are conducted on normal commercial terms and conditions. The transactions during the year
and amounts payable at year end between the Fund and the Responsible Entity were as follows:
YEAR ENDED
30 JUNE 2021
$
YEAR ENDED
30 JUNE 2020
$
Management fees for the period paid and payable by the Fund to the Investment Manager
3,602,731
3,374,401
Aggregate amounts payable to the Investment Manager at reporting date
297,839
313,630
Responsible Entity’s fees for the period paid and payable by the Fund to the Responsible Entity
145,218
141,772
Aggregate amounts payable to the Responsible Entity at reporting date
107,330
105,711
Investments
The Fund held investments in the following Fund which is managed by The Trust Company (RE Services) Limited or its
related parties:
AT JUNE 30, 2021
FAIR VALUE OF
INVESTMENT
$
INTEREST
HELD
(%)
DISTRIBUTIONS
RECEIVED/
RECEIVABLE
$
UNITS
ACQUIRED
DURING THE
PERIOD
UNITS
DISPOSED
DURING THE
PERIOD
MCP Wholesale Income Opportunities Trust
342,949,940
100
26,733,425
783,853
–
AT JUNE 30, 2020
MCP Wholesale Income Opportunities Trust
338,639,724
100
28,012,400
72,268,827
–
Metrics Income Opportunities Trust
Annual Report
35
13 SEGMENT INFORMATION
The Fund is organised into one main operating segment
with only one key function, being the investment of funds
predominantly in Australia.
14 SIGNIFICANT EVENTS DURING THE YEAR
The Directors continue to assess the potential financial and
other impacts of the coronavirus (“COVID-19”) outbreak to
the Fund. The current high-level of uncertainty regarding
the severity and length of COVID-19 on investment markets
has impacted investment outcomes and increased volatility
in investment performance during the period.
At the date of signing, the future impacts of COVID-19 on
global and domestic economies and investment market
indices, and their resulting impact on the Fund are uncertain.
The Directors and management will continue to monitor
this situation.
On 1 February 2021, Glenn Foster was appointed as a
Non-executive Director.
There were no other significant events during the year.
* Amounts have not been rounded.
15 EVENTS OCCURRING AFTER THE
REPORTING PERIOD
Effective from 30 July 2021 (i.e., date of registration of
change of name with ASIC) the name of the Fund was
changed from “MCP Income Opportunities Trust” to the
“Metrics Income Opportunities Trust”.
On 2 August 2021, the Directors declared a distribution of
0.84 cents per ordinary unit which amounted to $1,458,124*
and was paid on 9 August 2021.
The Directors are not aware of any event or circumstance
since the end of the financial year not otherwise addressed
within this report that has affected or may significantly affect
the operations of the Fund, the results of those operations
or the state of affairs of the Fund in subsequent years.
The Fund continues to operate as a going concern.
There is no other matter or circumstance which has arisen
since 30 June 2021 that has significantly affected, or may
significantly affect:
(i) the operations of the Fund in future financial years, or
(ii) the results of those operations in future financial years, or
(iii) the state of affairs of the Fund in future financial years.
16 CONTINGENT ASSETS AND LIABILITIES
AND COMMITMENTS
There are no outstanding contingent assets, liabilities
or commitments as at 30 June 2021 and 30 June 2020.
Metrics Income Opportunities Trust
Annual Report
36
In the opinion of the Directors of The Trust Company (RE Services) Limited, the Responsible Entity of Metrics Income
Opportunities Trust:
(a) the financial statements and notes set out on pages 14 to 36 are in accordance with the Corporations Act 2001, including:
(i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(ii) giving a true and fair view of the Fund’s financial position as at 30 June 2021 and of its performance, for the financial
year ended on that date,
(b) there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due and
payable; and
(c) note 2(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board.
This declaration is made in accordance with a resolution of the Directors of The Trust Company (RE Services) Limited.
Director
The Trust Company (RE Services) Limited
Sydney
24 August 2021
DIRECTORS’ DECLARATION
Metrics Income Opportunities Trust
Annual Report
37
AUDIT REPORT
38
©2021 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.
Independent Auditor’s Report
To the unitholders of Metrics Income Opportunities Trust (formerly MCP
Income Opportunities Trust)
Opinion
We have audited the Financial Report of
Metrics Income Opportunities Trust (the Fund).
In our opinion, the accompanying Financial
Report of the Fund is in accordance with the
Corporations Act 2001, including:
•
giving a true and fair view of the Fund’s
financial position as at 30 June 2021 and of
its financial performance for the year ended
on that date; and
•
complying with Australian Accounting
Standards and the Corporations Regulations
2001.
The Financial Report comprises:
•
Statement of financial position as at 30 June
2021;
•
Statement of comprehensive income,
Statement of changes in equity, and
Statement of cash flows for the year then
ended;
•
Notes including a summary of significant
accounting policies; and
•
Directors’ Declaration.
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 Fund 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 the
Code.
Key Audit Matters
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.
This matter was 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 this matter.
Metrics Income Opportunities Trust
Annual Report
38
39
Valuation and existence of financial assets at fair value through profit or loss ($343.0m)
Refer to Note 5 to the financial report
The key audit matter
How the matter was addressed in our audit
Financial assets at fair value through profit or
loss comprise investments in an unlisted unit
trust (MCP Wholesale Income Opportunities
Trust).
The Fund outsources certain processes and
controls relevant to maintaining custody and
underlying records of investments to the
custodian.
Valuation and existence of investments in the
unlisted trust is a key audit matter due to the:
•
Size of the Fund’s investment which are
significant to its financial position. The
investment in MCP Wholesale Income
Opportunities Trust represent 96.6% of the
Fund’s total assets at year end;
•
Importance of the performance of these
investments in driving the Fund’s
investment income and capital
performance, as reported in the Financial
Report; and
As a result, this was the area with greatest
effect on our overall audit strategy and
allocation of resources in planning and
performing our audit.
Our procedures included:
•
Assessing the appropriateness of the
accounting policies applied by the Fund,
including those relevant to the fair value of
investments, against the requirements of
the accounting standards;
•
Obtaining and reading the Fund’s service
provider’s GS007 (Guidance Statement 007
Audit Implications of the Use of Service
Organisations for Investment Management
Services) assurance reports to understand
the processes and assess the controls
relevant to the:
-
Fund administrator – to record the
Fund’s investments;
-
Custodian – to maintain custody and
underlying records of the Fund’s
investments; and
-
Unit Registry – to record changes in
the ownership of MCP Wholesale
Investment Trust.
•
Assessing the reputation, professional
competence and independence of the
auditors of the GS007 assurance report;
•
Checking the ownership and quantity of the
unit holding to the MCP Wholesale Income
Opportunities Trust’s unit registry;
•
Checking the valuation of the unit holdings
in MCP Wholesale Income Opportunities
Trust, as recorded in the general ledger, to
net assets of the MCP Wholesale Income
Opportunities Trust as at 30 June 2021;
•
Evaluating the valuation of underlying
assets held by MCP Wholesale Investment
Trust and its investees, which primarily
comprised of corporate loans, using
independently sourced market data for
observable inputs, such as, published credit
spreads and margins; and
Metrics Income Opportunities Trust
Annual Report
39
40
•
Evaluating the Fund’s disclosures of
investments, using our understanding
obtained from our testing, against the
requirements of the accounting standards.
Other Information
Other Information is financial and non-financial information in Metrics Income Opportunities Trust’s
annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The
Directors of The Trust Company (RE Services) Limited (the Responsible Entity) 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.
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 of The Trust Company (RE Services) Limited (the Responsible Entity) 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; and
•
assessing the Fund’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 Fund 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.
Metrics Income Opportunities Trust
Annual Report
40
41
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/ar2_2020.pdf. This description forms part of our
Auditor’s Report.
KPMG
Andrew Reeves
Partner
Sydney
24 August 2021
Metrics Income Opportunities Trust
Annual Report
41
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere
in this report is as follows. The information is current as at 30 July 2021 unless otherwise indicated.
A. DISTRIBUTION OF UNITS
Analysis of numbers of unitholders by size of holding:
HOLDING RANGES
NO. OF
HOLDERS
TOTAL UNITS
% ISSUED
SHARE CAPITAL
above 0 up to and including 1,000
561
325,630
0.19%
above 1,000 up to and including 5,000
2,166
6,326,880
3.64%
above 5,000 up to and including 10,000
1,319
10,257,622
5.91%
above 10,000 up to and including 100,000
2,933
84,760,150
48.83%
above 100,000
138
71,915,860
41.43%
Totals
7,117
173,586,142
100.00%
The number of unitholders holding less than a marketable parcel of $500 worth of units is 66 and they hold a total of 4,454 units.
B. LARGEST UNITHOLDERS
The names of the twenty largest holders of quoted units are listed below:
POSITION
HOLDER NAME
HOLDING
% IC
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
17,227,655
9.92%
2
NETWEALTH INVESTMENTS LIMITED
10,699,238
6.16%
3
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
6,824,767
3.93%
4
MCH INVESTMENT MANAGEMENT SERVICES PTY LTD
2,966,675
1.71%
5
PERPETUAL CORPORATE TRUST LTD
2,412,718
1.39%
6
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
2,030,179
1.17%
7
NETWEALTH INVESTMENTS LIMITED
1,434,186
0.83%
8
CHARANDA NOMINEE COMPANY PTY LTD
1,296,261
0.75%
9
BALMORAL FINANCIAL INVESTMENTS PTY LTD
1,000,000
0.58%
10
CITICORP NOMINEES PTY LIMITED
774,712
0.45%
11
JOHN SHEARER (HOLDINGS) PTY LIMITED
750,000
0.43%
12
MISS KAREN MICHELLE PHILLIPS
693,334
0.40%
13
BRIXTON CAPITAL PTY LTD
649,063
0.37%
14
CTE INVESTMENTS PTY LTD
631,358
0.36%
15
AUSTRALIAN EXECUTOR TRUSTEES LIMITED
530,555
0.31%
16
KUZEN PTY LTD
500,000
0.29%
16
JT & M (VIC) PTY LTD
500,000
0.29%
16
OBFT PTY LTD
500,000
0.29%
17
DEMETA PTY LTD
492,666
0.28%
18
NATIONAL NOMINEES LIMITED
453,677
0.26%
19
BNP PARIBAS NOMINEES PTY LTD
444,556
0.26%
20
MRS YVETTE SHARRON TAYLOR
400,000
0.23%
20
MR MICHAEL JOHN COOKE & MS TANIA ANONA ATCHISON
400,000
0.23%
20
CHARANDA NOMINEE COMPANY PTY LTD
400,000
0.23%
Totals
54,011,600
31.12%
Total issued capital
173,586,142
100.00%
Metrics Income Opportunities Trust
Annual Report
42
C. SUBSTANTIAL UNITHOLDERS
The Fund had two substantial unitholders;
> HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED,
holding 9.92% of units on issue
> NETWEALTH INVESTMENTS LIMITED
, holding 6.16% of units on issue
D. VOTING RIGHTS
Voting rights which may attach to or be imposed on any unit
or class of units is as follows:
(a) on a show of hands each unitholder has one vote; and
(b) on a poll, each unitholder has one vote for each dollar
of the value of the total interests they have in the Fund.
E. SECURITIES EXCHANGE LISTING
The Fund’s units are listed on the Australian Securities
Exchange and are traded under the code “MOT”.
F. UNQUOTED UNITS
There are no unquoted units on issue.
G. VOLUNTARY ESCROW
There are no restricted units in the Fund or units
subject to voluntary escrow.
H. ON‑MARKET BUY‑BACK
There is no current on‑market buy‑back.
I. REGISTERED OFFICE OF THE RESPONSIBLE ENTITY
The Trust Company (RE Services) Limited
Level 18, Angel Place, 123 Pitt Street
Sydney NSW 2000
Telephone: 02 9229 9000
J. UNIT REGISTRY
Automic Pty Ltd trading as Automic Group
Level 15, 126 Phillip Street
Sydney NSW 2000
Telephone: 1300 816 157
metrics@automicgroup.com.au
www.automicgroup.com.au
K. RESPONSIBLE ENTITY COMPANY SECRETARIES
Mary Kapota
Sylvie Dimarco
Gananatha Minithantri
Metrics Income Opportunities Trust
Annual Report
43