Metrics Credit Partners has suspended trading in three of its ASX-listed funds after auditor concerns over how the fund manager valued assets. The responsible entity, The Trust Company (RE Services), requested the pause as a precautionary measure.

The affected funds are the Metrics Master Income Trust (ASX: MXT), the Metrics Income Opportunities Trust (ASX: MOT) and the Metrics Real Estate Multi-Strategy Fund (ASX: MRE). Together the funds are worth about $3 billion.

The suspension followed “material differences” between a preliminary report released on August 31 and the final audited accounts, which are due by September 30. The auditor, KPMG, had disagreed with some of Metrics’ valuation assumptions.

Metrics later revealed a $160 million writedown across the three funds. The real estate fund’s value fell by over 12 percent, from $388 million to $340 million.

The episode adds to regulatory scrutiny of Australia’s private credit sector after ASIC flagged inconsistent valuation and disclosure practices across dozens of funds.

Why it matters: the writedowns show investors cannot take private credit valuations at face value, raising questions across the sector.