Summary: Closed End Fund boosters keep claiming discounts to NTA are opportunities to buy them cheap. The bigger the supposedly-unmerited discount, the bigger the opportunity.
As of 31 Jul 2026, I'll go through some of the biggest discounts and disprove this with just one (typically little known) fact for each.
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| Retail investors are all tied up with so many ASX CEF "opportunities"! |
1. MOT: Metrics Income Opportunities Trust
($384m NAV assets; $2.15 NAV; Price: $1.60; Discount: 26%)
- Marketed as blended fixed income with "equity upside." Metrics Credit Partners has actually increased the equity proportion to 40% by using MOT to take on bad loans at 100 cents in the dollar from its other funds. Ridiculous unchanging "daily-calculated" NAV of $2.15 when a loan goes bad and becomes 2-5% of MOT assets as work-out equity. And investors don't ever get to see these equity positions!
2. MRE: Metrics Real Estate Multi-Strategy Fund.
($383m NAV assets; $2.53 NAV; Price: $1.85; Discount: 27%)
- MRE NAV has been going up but its 50% equity positions aren't being adjusted monthly for adverse conditions affecting Australian residential property. Unlike MOT, at least the quarterly Portfolio Reports (e.g. Mar 2026) provide (4 month lagged) equity position transparency. But 9% of MRE (18% of equity positions) being in developments like Orchard Hills North, is a red flag on the NAV!
3. Next up the Grandfather LICs: AFI, ARG, WHF, etc.