Half Year 2026 MA Financial Group Ltd Earnings Call

August 20, 2026

Julian Biggins: CEO of MA Financial, sitting alongside Chris Wyke, who is here in the room with me. We also have Giles Boddy, CFO, and Michael Leonard, the Head of Investor Relations. We are very pleased to deliver a record result and strong outlook in what many would consider challenging conditions. I will start at slide seven with the key highlights. Today, we report underlying earnings growth of 45%, with strong performance across a diversified business. This excludes the large notable item which is attributable to the combined outcome of divesting of both Infinite Aged Care and Brunswick Heads Hotel in the period. If these were added back to the result, the EPS growth would have been higher at 96%.

Speaker #1: CEO of MA Financial, sitting alongside Chris Wyke, who is here in the room with me. We also have Charles Boddy, CFO, and Michael Leonard, the Head of Investor Relations.

Speaker #1: We are very pleased to deliver a record result and strong outlook in what many would consider challenging conditions. I'll start with slide 7, with the key highlights.

Speaker #1: Today we report underlying earnings growth of 45%, with strong performance across the diversified business. This excludes the large notable item, which is attributable to the combined outcome of divesting of both Infinite Aged Care and Brunswick Heads Hotel in the period.

Speaker #1: If these were added back to the result, the EPS growth would have been higher at 96%. As earnings grow, we expect to increase our fully-franked dividend, and today have announced a 33% increase in our interim dividend to $0.08 per share, fully-franked, up from $0.06 per share in the prior period.

Julian Biggins: As earnings grow, we expect to increase our fully franked dividend, and today have announced a 33% increase in our interim dividend to AUD 0.08 per share, fully franked, up from AUD 0.06 per share in the prior period. We are very comfortable with the performance and strength of the business. One of our key measures is recurring revenue, and that has increased to represent 72% of total revenue and underpins the predictability of MA's future performance. At AUD 154 million, it is almost four times what it was five years ago, and continuing to grow. This is a key metric for the executive team.

Speaker #1: We're very comfortable with the performance and strength of the business. One of our key measures is recurring revenue, and that has increased to represent 72% of total revenue, and underpins the predictability of MA's future performance.

Speaker #1: At $154 million, there's almost 4 times what it was 5 years ago, and continuing to grow. This is a key metric for the executive team.

Speaker #1: Assets under management were $15.5 billion at the end of the period, up 44% on the prior period, supported by both organic growth across the business and the acquisition of IP generation, which has rebalanced the portfolio of investment strategies at what we believe to be the right point in the cycle.

Julian Biggins: Assets under management were AUD 15.5 billion at the end of the period, up 44% on the prior period, supported by both organic growth across the business and the acquisition of IP Generation, which has rebalanced the portfolio of investment strategies at what we believe to be the right point in the cycle. Our unique lending ecosystem continues to deliver strong growth, although more importantly, the combination of the businesses provide a unique distribution and product manufacturing platform that is without peer in the country. The growth of MA Money within the ecosystem is evidence of it working, with the loan book sitting at just over AUD 8 billion today, and that compares to AUD 3.7 billion just a year ago.

Speaker #1: Our unique lending ecosystem continues to deliver strong growth, although more importantly, the combination of the businesses provide a unique distribution and product manufacturing platform that is without peer in the country.

Speaker #1: The growth of MA Money within the ecosystem is evidence of it working, with the loan book sitting at just over $8 billion today and that compares to $3.7 billion just a year ago.

Speaker #1: Corporate advisories had a very good start to the year, delivering around $50 million in fees, thus far when we include the $25 million that is expected to be delivered by transactions that have been announced post-balance date.

Julian Biggins: Corporate Advisory has had a very good start to the year, delivering around AUD 50 million in fees thus far, when we include the AUD 25 million that is expected to be delivered by transactions that have been announced post balance date. Bringing all of this together, we see a continuation of strong earnings growth in FY26, driven by executing a strong, consistent strategy underpinned by a diversified and scaled business model. Now turning forward to slide eight and some key numbers. The business has continued to deliver despite the market and macroeconomic uncertainty in the H1. From an operating perspective, the acquisition of IP Generation has added considerable bench strength to our core real estate strategy, demonstrated in the Q4 last year when we acquired AUD 1.2 billion of retail shopping centers, which carried revenue growth into FY26.

Speaker #1: Bringing all of this together, we see a continuation of strong earnings growth in FY26, driven by executing a strong consistent strategy underpinned by diversified scaled business model.

Speaker #1: Now turning forward to slide 8 and some key numbers. The business has continued to deliver despite the market and macroeconomic uncertainty in the heart.

Speaker #1: From an operating perspective, the acquisition of IP generation has added considerable bench strength to our core real estate strategy, demonstrated in the fourth quarter last year when we acquired $1.2 billion of retail shopping centers, which carried revenue growth into FY26.

Speaker #1: The launch of the listed private credit funds, MA1 and MA2, late last year has also underpinned revenue growth in FY26. It's important to note that whilst AUM is a key operating metric, there are many ways to succeed in our asset management business, with Redcape Hospitality being a highlight in FY26, as asset performance, transactional activity, and potential performance fees will see it deliver very strong outcomes in the year.

Julian Biggins: The launch of the listed private credit funds, MA1 and MA2, late last year, has also underpinned revenue growth in FY26. It is important to note that whilst AUM is a key operating metric, there are many ways to succeed in our asset management business. Redcape Hospitality being a highlight in FY26, as asset performance, transactional activity, and potential performance fees will see it deliver very strong outcomes in the year. Gross flows were down slightly on the prior year, which reflects a relatively tougher environment for private credit and the listed markets being substantially closed to issuance. Excluding lumpier listed market and institutional risings, gross inflows were actually up slightly on the prior period. Finsure continues its growth journey, increasing its loans on platform by 25%, and MA Money powered through AUD 7.5 billion at June.

Speaker #1: Growth flows were down slightly on the prior year, which reflects a relatively tougher environment for private credit, and the listed markets being substantially closed for issuance.

Speaker #1: Excluding lumpier listed market and institutional ratings, growth inflows were actually up slightly on the prior period. FinShore continues its growth journey, increasing its loans on platform by 25%, and MA Money powered through 7.5 billion at June.

Speaker #1: The MA residential ecosystem is important to acknowledge, as it's a very unique collection of businesses and capabilities and we are demonstrating how to create material shareholder value through the ecosystem.

Julian Biggins: The MA residential ecosystem is important to acknowledge as it is a very unique collection of businesses and capabilities, and we are demonstrating how to create material shareholder value through the ecosystem. Corporate Advisory was down slightly on the prior period, although this was largely due to timing, with a flurry of transactions announced post balance date, highlighting the strong activity levels experienced during the H1. The result is positive. We are very happy with the way the business is navigating the current market environment. While some parts will face headwinds, such as real estate credit, other parts are flourishing and delivering growth. It is the strength of our scaled, diversified business. Turning forward to slide 9 and our growth journey. We have often talked about how we build long-term shareholder value and the importance of recurring income and building multiple growth strategies.

Speaker #1: Corporate advisory was down slightly on the prior period, although this was largely due to timing, with a flurry of transactions announced post-balance date, highlighting the strong activity levels experienced during the half.

Speaker #1: The result is positive, we are very happy with the way the business is navigating the current market environment. While some parts will face headwinds, such as real estate credit, other parts are flourishing, and delivering growth.

Speaker #1: It's the strength of our scaled, diversified business. Turning forward to slide 9 and our growth journey. We have often talked about how we build long-term shareholder value, and the importance of recurring income and building multiple growth strategies.

Speaker #1: As you can see on this slide, we've been executing this strategy for a long time now, with strong growth across all key operating statistics over the last 5 years.

Julian Biggins: As you can see on this slide, we have been executing this strategy for a long time now, with strong growth across all key operating statistics over the last five years. When you look at recurring revenue in the H1 of FY21, it was only AUD 44 million. Then compare that to today, only five years later, and it is AUD 154 million. You can see what has driven this when you look at each of the business units and the significant growth achieved over the period. Whilst growth rates may slow given the expanding base, we still see considerable growth in the business and are always thinking about new opportunities. The objective of building a growing recurring revenue base is to build a strong foundation of revenue that endures variable market conditions, and we continue to execute on that consistent strategy today.

Speaker #1: When you look at recurring revenue in the first half of FY21, it was only $44 million and then compare that to today, only 5 years later, and it's $154 million.

Speaker #1: You can see what has driven this when you look at each of the business units and the significant growth achieved over the period. Whilst growth rates may slow, given the expanding base, we still see considerable growth in the business and are always thinking about new opportunities.

Speaker #1: The objective of building a growing recurring revenue base is to build a strong foundation of revenue that endures variable market conditions, and we continue to execute on that consistent strategy today.

Speaker #1: Again, the 5-year ago comparison of the business is stark, as we had half the AUM, no FinShore, no MA Money, and a third of the recurring revenue.

Julian Biggins: Again, the five-year ago comparison of the business is stark, as we had half the AUM, no Finsure, no MA Money, and a third of the recurring revenue. The business is quite simply a larger, more stable business today. Turning forward to slide 10 and our updated three-year targets. On this slide, we have set out our new three-year targets for the group. We first provided three-year targets in August of 2023 for December 2026, and with that period now upon us and those targets largely met, we have decided to refresh the targets with a December 2029 version. We have always talked about our strategy in the context of medium-term vision and decision-making, and these three-year targets are our preferred approach of how to provide the market with strategic targets through MA Financial.

Speaker #1: The business is quite simply a larger, more stable business today. Turning forward to slide 10 and our updated 3-year targets. On this slide, we've set out our new 3-year targets for the group.

Speaker #1: We first provided 3-year targets in August of 2023 for December 2026, and with that period now upon us and those targets largely met, we've decided to refresh the targets with a December 2029 version.

Speaker #1: We've always talked about our strategy in the context of medium-term vision, and decision-making, and these 3-year targets are our preferred approach of how to provide the market with strategic targets through MA Financial.

Speaker #1: We're obviously confident in our targets and have demonstrated our track record of how we go about executing a strategy. We hope that provides credibility for the market in thinking about how we have approached landing on these targets.

Julian Biggins: We are obviously confident in our targets and have demonstrated our track record of how we go about executing a strategy. We hope that provides credibility for the market in thinking about how we have approached landing on these targets. As you will no doubt focus on, the implied CAGR for our targets is generally less than what we have achieved, and this obviously comes with scale and that we are starting at a much bigger base. With that, our network is bigger, and we have more ways to go about landing the targets, and that provides us with real confidence in our ability to deliver. We encourage you to look at these targets and back solve what financial outcomes are delivered if these targets are met, as that is what excites us.

Speaker #1: As you will no doubt focus on, the implied CAGR for our targets is generally less than what we have achieved, and this obviously comes with scale, and that we are starting at a much bigger base.

Speaker #1: With that, our network is bigger, and we have more ways to go about landing the targets, and that provides us with real confidence in our ability to deliver.

Speaker #1: We encourage you to look at these targets and back-solve what financial outcomes are delivered if these targets are met, as that is what excites us.

Speaker #1: If we cast our mind forward 3 years, and look at the financial outcomes attached to these targets, it would be a great outcome for all stakeholders.

Julian Biggins: If we cast our mind forward 3 years and look at the financial outcomes attached to these targets, it would be a great outcome for all stakeholders. We are a growth company and proactive in our approach of how we execute our strategy. Now, turning forward to slide 11 and the strong financial result. As I have mentioned, the financial result is a particularly strong one. The decision made last year around strategic growth opportunities, including the acquisition of IP Generation, the listing of the private credit funds, and the investment in MA Money, have all paid dividends, and this demonstrates the strength of the diversified model.

Speaker #1: We're a growth company and proactive in our approach of how we execute our strategy. Now, turning forward to slide 11 and the strong financial result.

Speaker #1: As I've mentioned, the financial result is a particularly strong one. The decision made last year around strategic growth opportunities including the acquisition of IP generation the listing of the private credit funds and the investment in MA Money have all paid dividends, and this demonstrates the strength of the diversified model.

Speaker #1: Whilst we are excluding the large notable item, which predominantly relates to the profit on sale of our aged care business, we're very proud of that result, which delivered investors $2.8 times their initial capital, and was obviously a material transaction for MA Financial, returning approximately $40 million in capital to the balance sheet.

Julian Biggins: Whilst we are excluding the large notable item, which predominantly relates to the profit on sale of our aged care business, we are very proud of that result, which delivered investors 2.8 times their initial capital and was obviously a material transaction for MA Financial, returning approximately AUD 40 million in capital to the balance sheet. Excluding the large notable item, return on equity jumped over 400 basis points to exceed 15% in the H1, and we expect this to continue to get stronger as our capital-light model supports earnings growth. Increasing our dividend by 33% to AUD 0.08 per share demonstrates our confidence in the business and the strength of the balance sheet. We expect dividends to continue to increase as earnings grow. In summary, this financial result is validation of the diversified business model working, delivering 45% earnings growth alongside a material increase in our return on equity.

Speaker #1: Excluding the large notable item, return on equity jumped over $400 basis points to exceed 15% in the first half, and we expect this to continue to get stronger as our capital light model supports earnings growth.

Speaker #1: Increasing our dividend by 33% to $0.08 per share demonstrates our confidence in the business and the strength of the balance sheet. We expect dividends to continue to increase as earnings grow.

Speaker #1: So in summary, this financial result is validation of the diversified business model working, delivering 45% earnings growth alongside a material increase in our return on equity.

Speaker #1: Turning forward to slide 12. You can see from the charts that this period has generated another record result, and when you read this page in conjunction with slide 9, you get a real picture of the breadth of the growth and the strong underlying recurring revenue base of MA Financial.

Julian Biggins: Turning forward to slide 12. You can see from the charts that this period has generated another record result, and when you read this page in conjunction with slide 9, you get a real picture of the breadth of the growth and the strong underlying recurring revenue base of MA Financial. You need to remember, in FY22, we generated about half of the recurring revenue we generate today, and our profitability was heavily reliant on performance fees from Redcape Hospitality. Today, that picture is materially different, with over 70% of our total underlying revenue from recurring revenue streams and a significantly reduced reliance on performance and transaction fees, although these are starting to build as well. Moving forward to slide 13 and divisional highlights. In asset management, the December quarter of last year really set us up for the H1 result.

Speaker #1: You need to remember in FY22 we generated about half of the recurring revenue we generate today, and our profitability was heavily reliant on performance fees from Redcape Hospitality.

Speaker #1: Today that 70% of our total underlying revenue from recurring revenue streams. And a significantly reduced reliance on performance and transaction fees, although these are starting to build as well.

Speaker #1: Moving forward to slide 13 and divisional highlights. In asset management, the December quarter of last year really set us up for the first half result.

Speaker #1: The acquisition of IP generation delivering $1.8 billion of AUM, the subsequent acquisition of Hyperdome and Top Ride shopping center for a combined $1.2 billion, and the listing of MA2 all underpinning strong revenue growth.

Julian Biggins: The acquisition of IP Generation delivering AUD 1.8 billion of AUM, the subsequent acquisition of Hyperdome and Top Ryde shopping center for a combined AUD 1.2 billion, and the listing at MA2, all underpinning strong revenue growth. As previously flagged, we sold Marion Shopping Centre in the period, and this reduced AUM by approximately AUD 600 million. Gross flows from our domestic unlisted channels continue to be strong and not materially different from last year. Net flows have been impacted by the intense focus on private credit, both globally and domestically, and more directly, the softness in the residential market post the federal budget. The asset-backed products such as the MA Priority Income Fund continue to attract considerable capital over the half and are well-suited to this environment, with downside protection and conservative asset backing. Redcape Hospitality has had a very strong period, both from a trading performance and also transactionally.

Speaker #1: As previously flagged, we sold Marin Shopping Center in the period, and this reduced AUM by approximately $600 million. Gross flows from our domestic unlisted channels continue to be strong, and not materially different from last year.

Speaker #1: Net flows have been impacted by the intense focus on private credit both globally and domestically, and more directly the softness in the residential market post the federal budget.

Speaker #1: The asset-backed products such as the priority income fund continue to attract considerable capital over the half, and a well-suited to this environment, with downside protection and conservative asset backing.

Speaker #1: Redcape Hospitality has had a very strong period both from a trading performance and also transactionally. This will drive a material earnings growth for the hospitality platform, and we anticipate performance fees to feature in second half 26.

Julian Biggins: This will drive a material earnings growth for the hospitality platform, and we anticipate performance fees to feature in H2 2026. The New Zealand Active Investor Plus program has kicked off with in excess of NZD 100 million of capital now deployed in predominantly private credit or hospitality assets. The pipeline for this product is strong. Over the last 12 months, the product mix has moved again, reflecting the increased growth being driven by real estate, both core and alternative, and the acquisition of IP Generation. This, alongside the reduced range of fees in real estate credit, have seen the recurring margin come down over the period, whilst the transaction performance fees have increased. This resulted in a nine-basis point reduction in our total fee margin over the period to 159 basis points.

Speaker #1: The New Zealand AIP programme has kicked off with in excess of New Zealand $100 million of capital now deployed in predominantly private credit or hospitality assets.

Speaker #1: The pipeline for this product is strong. Over the last 12 months, the product mix has moved again, reflecting the increased growth being driven by real estate both core and alternative, and the acquisition of IP generation.

Speaker #1: This, alongside the reduced arranger fees in real estate credit, have seen the recurring margin come down over the period, whilst the transaction performance fees have increased.

Speaker #1: This resulted in a 9 basis point reduction in our total fee margin over the period to $159 basis points. Whilst core real estate AUM growth lowers recurring revenue margin, it benefits AUM growth through the use of leverage alongside equity.

Julian Biggins: Whilst core real estate AUM growth lowers recurring revenue margin, it benefits AUM growth through the use of leverage alongside equity, and total margin through increased performance and transaction fees, hence our increasing focus on the total fee-based margin. Recurring revenue should benefit as residential real estate markets stabilize and increased activity levels support a rebound in the range of fees within real estate credit. Turning forward to the other divisions. Finsure's loan book continued to grow and hit AUD 193 billion in June. As a reminder, the loan book was slightly less than AUD 60 billion when we agreed to acquire Finsure four years ago. The revenue per broker increased materially over the half as we rationalized brokers to focus on the most productive brokers. We would expect to see this revenue per broker continue to grow as these numbers annualize.

Speaker #1: And total transaction fees hence our increasing focus on the total fee base margin. Recurring revenue should benefit as residential real estate market stabilise, and increased activity levels support a rebound in the range of fees within real estate credit.

Speaker #1: Turning forward to the other divisions. Finchord's loan book continued to grow and hit $193 billion in June. As a reminder, the loan book was slightly less than $60 billion when we agreed to acquire Finchord 4 years ago.

Speaker #1: The revenue per broker increased materially over the half as we rationalised brokers to focus on the most productive brokers, we would expect to see this revenue per broker continue to grow as these numbers annualise.

Speaker #1: MA Money's loan book reached $7.5 billion at the end of June, which is well ahead of our targets. Strong volume growth has persisted as the business continues to increase its market share, and broaden its mortgage broker relationships.

Julian Biggins: MA Money's loan book reached AUD 7.5 billion at the end of June, which is well ahead of our targets. Strong volume growth has persisted as the business continues to increase its market share and broaden its mortgage broker relationships. The growth in MA Money's market share is underpinned by quick turnaround times on apps, broker relationships, and market-leading tech. Net interest margin was in line with our targeted range at 1.33%, and the arrears remain at very low rates. In corporate advisory and equities, the business had a good H1 with activity impacted by extended execution periods, which pushed a number of transactions into the H2. The activity mix was skewed again to M&A and private capital, with the IPO of FDC being the exception. MA Moelis Australia helped FDC list on the ASX at a AUD 1 billion valuation, being the largest IPO of the year.

Speaker #1: The growth in MA Money's market share is underpinned by quick turnaround times on apps broker relationships and market leading tech. Net interest margin was in line with our targeted range at $1.33%, and the arrears remain at very low rates.

Speaker #1: In corporate advisory and equities, the business had a good first half with strong activity impacted by extended execution periods, which pushed a number of transactions into the second half.

Speaker #1: The activity mix was skewed again to M&A, and private capital with the IPO of FDC being the exception. MA Mollus helped FDC list on the ASX at a $1 billion valuation being the largest IPO of the year.

Speaker #1: Equities also had a stronger period with commissions up 38% as market volumes improved and a stronger leadership team executed well. The period since 30 June has been a very busy one.

Julian Biggins: Equities also had a stronger period, with commissions up 38% as market volumes improved and a stronger leadership team executed well. The period since 30 June has been a very busy one. Gross flows accelerated post-result, with the group raising in excess of AUD 400 million over the first six weeks, with a strong focus on our asset-backed MA Priority Income Fund. Net flows for the first six weeks of the half were AUD 166 million, which represents a strong run rate from both our domestic and international teams. These flows were largely into our open-ended funds. Our real estate business has been highly active, with over AUD 1 billion of well-progressed deal flow across both core real estate and hospitality.

Speaker #1: Gross flows accelerated post-result with a group raising in excess of $400 million over the first 6 weeks with a strong focus on our asset-backed priority income fund.

Speaker #1: Net flows for the first 6 weeks of the half were $166 million, which represents a strong run rate from both our domestic and international teams.

Speaker #1: These flows were largely into our open-ended funds. Our real estate business has been highly active, with over $1 billion of well-progressed deal flow across both core real estate and hospitality.

Speaker #1: Whilst the first half 26 was relatively quiet for core real estate, we currently have over $500 million of retail shopping center transactions that we are starting to raise capital for, which we expect to contribute significantly to the second half net flows.

Julian Biggins: Whilst the H1 2026 was relatively quiet for core real estate, we currently have over AUD 500 million of retail shopping center transactions that we are starting to raise capital for, which we expect to contribute significantly to the H2 net flows. As I've previously mentioned, hospitality has been active, and we expect this to be a standout year for the platform. MA Redcape Hotel Fund returned over 17% to its unitholders over the year to 30 June, and the fund has exchanged on over AUD 500 million of pubs that will settle in the H2 with a continued focus on enhancing portfolio mix. MA Money continued its growth momentum with its loan books surpassing AUD 8 billion to deliver records with around AUD 1 billion of settlements since 30 June.

Speaker #1: As I've previously mentioned, hospitality has been active, and we expect this to be a standout year for the platform. MA Redcape Hotel Fund returned over 17% to its unit holders over the year to 30 June, and the fund has exchanged on over $500 million of PUBs that will settle in the second half with a continued focus on enhancing portfolio mix.

Speaker #1: MA Money continued its growth momentum with its loan books surpassing $8 billion to deliver records with around $1 billion of settlements since 30 June.

Speaker #1: Net interest margin is being retained around the same level as first half 26, and we have placed a $1 billion RMBS into the securitisation market.

Julian Biggins: Net interest margin is being retained around the same level as H1 2026, and we have placed a AUD 1 billion RMBS into the securitization market. Finsure also carried the momentum into July, settling AUD 8 billion in the month, with only minimal impact being witnessed from the proposed changes outlined in the federal budget, with July settlements approximately up 10% year-on-year. In any case, Finsure is predominantly a fee for service model and therefore less exposed to flows and more to revenue per broker and number of brokers. Corporate Advisory has announced several transactions post balance date, with approximately AUD 25 million of additional revenue attributable to them. Overall, a very strong start to the H2, which takes us to the next page and the outlook.

Speaker #1: Finchord also carried the momentum into July, settling $8 billion in the month with only minimal impact being witnessed from the proposed changes outlined in the federal budget, with July settlements approximately up 10% year on year.

Speaker #1: In any case, Finchord is predominantly a fee-for-service model, and therefore less exposed to flows and more to revenue per broker and number of brokers.

Speaker #1: Corporate advisory has announced several transactions post-balance date, with approximately $25 million of additional revenue attributable to them. Overall, a very strong start to the second half, which takes us to the next page, and the outlook.

Speaker #1: In regard to the outlook, we expect the continuation of the momentum in the business to deliver material earnings growth in FY26 with an earnings skewed to the second half.

Julian Biggins: In regards to the outlook, we expect the continuation of the momentum in the business to deliver material earnings growth in FY26, with an earning skewed to the H2. In asset management, whilst the gross flows have been very strong, the net flows have been more subdued. In the H2, we see a stronger net flow contribution compared to the first, supported by a more active period for core real estate. We also expect our asset-backed private credit funds to continue to perform well. Reflecting a more active core real estate offering and subdued range of fees from real estate credit, we expect the H2 recurring revenue margin to be consistent with that achieved in the H1.

Speaker #1: In asset management, whilst the gross flows have been very strong, the net flows have been more subdued. In the second half, we see a stronger net flow contribution compared to the first, supported by a more active period for core real estate.

Speaker #1: We also expect our asset-backed private credit funds to continue to perform well, reflecting a more active core real estate offering and subdued a range of fees from real estate credit we expect the second half recurring revenue margin to be consistent with that achieved in the first half.

Speaker #1: In regard to transaction and performance fees in the second half, we see a similar strong result to the first half, with a material amount already underwritten by announced or very advanced transactions.

Julian Biggins: In regards to transaction and performance fees in the H2, we see a similar strong result to the H1, with a material amount already underwritten by announced or very advanced transactions. We would expect to see AUM increase from June, predominantly underpinned by growth in core real estate, hospitality, and asset-backed product credit. We will see the aged care fund and Beach Hotel settle in the H2, although do not expect any other material divestments. We have increased the guidance for MA Money to deliver AUD 25 to 30 million of NPAT in FY26, with the loan book at AUD 8 billion and growing. We anticipate strong growth into FY27 as well. Corporate Advisory is well placed for the year with around AUD 50 million of corporate advisory revenue already booked or de-risked, which bodes well for it meeting the target range per executive this year.

Speaker #1: We would expect to see AUM increase from June predominantly underpinned by growth in core real estate, hospitality, and asset-backed private credit. We'll see the aged care fund and beach hotels settle in the second half, although do not expect any other material investments.

Speaker #1: We've increased the guidance for MA Money to deliver $25 to $30 mil of end patent in FY26, with the loan book at $8 billion and growing.

Speaker #1: We anticipate strong growth into FY27 as well. Corporate advisory is well placed for the year with around $50 million of corporate advisory revenue already booked or de-risked, which bodes well for it meeting the target range per executive this year.

Speaker #1: Finally, strategic spend is running to plan with the majority of expense relating to the US private credit platform, where we continue to make steady progress raising capital in addition to adding a number of new products being considered.

Julian Biggins: Finally, strategic spend is running to plan with the majority of the expense relating to the US private credit platform, where we continue to make steady progress raising capital in addition to adding a number of new products being considered. In closing, we are very happy with the business and how it is performing. To think that over the next 12 or 18 months, the business will hopefully exceed AUD 500 million of annualized revenue is a real milestone for the group and validates the scale of MA Financial as we approach our 18th anniversary and 10th year of being listed. We are a growth company focused on generating a strong foundation of recurring revenue with a diversified ecosystem designed to help balance out cycles as they come and go. Sustainable growth is something we strive for. We look forward to executing our consistent strategy and hopefully delivering strong growth in the future.

Speaker #1: In closing, we're very happy with the business and how it is performing. I think that over the next 12 or 18 months the business will hopefully exceed $500 million of annualised revenue is a real milestone for the group and validates the scale of MA Financial as we approach our 18th anniversary and 10th year of being listed.

Speaker #1: We're a growth company focused on generating a strong foundation of recurring revenue with a diversified ecosystem designed to help balance out cycles as they come and go.

Speaker #1: Sustainable growth is something we strive for. We look forward to executing our consistent strategy and hopefully delivering strong growth in the future. With that, I'll hand over to the moderator for Q&A.

Julian Biggins: With that, I will hand over to the moderator for Q&A.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask a question. Today's first question comes from Cameron Halkett with Canaccord Genuity. Please go ahead.

Speaker #1: Thank you. If you were to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2.

Speaker #1: If you are on a speakerphone, please pick up the handset to ask a question. Today's first question comes from Cameron Halket with Pentacord Genuity.

Speaker #1: Please go ahead.

Speaker #2: Questions. I have three. The first is just around the performance that we've been seeing in the last year or so, I suppose, in Redcape in particular.

Cameron Halkett: Questions. I have three. The first is just around the performance that we have been seeing in the last year or so, I suppose, in Redcape in particular. Obviously, the underlying assets are performing well. I think there was some revaluation upward in the last quarter, but I suppose just at the asset level, Julian, do you have any view on what is driving, I suppose, the strong performance there in pubs in particular? Is that the consumer de-scoping from mid-market hospo? Just a mix of things, any color would be helpful. Thanks.

Speaker #2: Obviously, the underlying assets are performing well. I think there was some revaluation upward in the last quarter, but I suppose just that the asset level Julian, do you have any view on what's driving, I suppose, the strong performance there in PUBs in particular?

Speaker #2: Is that the consumer descoping from mid-market hospo, just a mix of things? Any color would be helpful. Thanks.

Speaker #3: Thanks, Cameron. I think from Redcape, performance was exceptionally strong over the last couple of years, and when I say exceptionally strong, it was sort of double-digit even though growth.

Chris Wyke: Thanks, Cam. I think from Redcape, performance was exceptionally strong over the last couple of years and when I say exceptionally strong, it is sort of double-digit EBITDA growth. That slowed a little bit into the last sort of quarter, but still running sort of run rates for the market. I think from a Redcape perspective, having a well-capitalized business with high-quality venues that you can put CapEx into and take market share from the competitors has been a very important feature of the Redcape business. The F&B offering that sort of comes with building out a better, more sort of diversified offering of F&B within the venues, so food and beverage, large family restaurants, has really boded well for that business as well. Chris Unger running Redcape has done a great job. We are expecting to have another strong year in FY27.

Speaker #3: That slowed a little bit into the last third quarter, but still running sort of at run rate to the market. I think from a Redcape perspective, having a well-capitalised business with high-quality venues that you can put CapEx into and take market share from the competitors has been a very important feature of the Redcape business.

Speaker #3: And the F&B offering that sort of comes with building out a better, more sort of diversified offering of F&B within the venues for food and beverage, large sort of family sort of restaurants, has really boded well for that business as well.

Speaker #3: So Chris, I'm going to run in Redcape's done a great job. We're expecting to have another strong year in FY27. And the capital side of the business, by the capital markets in terms of transactional, stay very liquid on firm pricing.

Chris Wyke: The capital side of the business by the capital markets in terms of transactionals, stay very liquid on firm pricing, and we view our valuations in Redcape as being conservative.

Speaker #3: And we view our valuations in Redcape as being conservative.

Speaker #2: Yeah, great. Thank you. Two-year forward return target, 15% of there as well. They've got reiterated. So absolutely, our look looks good. If I can turn to MA Money, last guidance you had in market was north of $20 mil of end pad.

Cameron Halkett: Yeah, great. I think your 2-year forward return target is 15% odd there as well that got reiterated. So absolutely, outlook looks good. If I can turn to MA Money, last guidance you had in market was not the AUD 20 million NPAT. Today, it is upgraded to AUD 25 million to AUD 30 million. I think fair to say people assumed AUD 20 million, and obviously wait and see impacts of federal budget and recent resi housing weakness, but obviously done a bit better or expecting to do a bit better. What is the key lift here, if anything? Are you flexing reinvestment in the business? Are the NIMs holding in better than first thought?

Speaker #2: Today it's upgraded to $25 to $30. I think fair to say people assumed $20, and obviously wait and see impacts of federal budget and recent housing weakness.

Speaker #2: But obviously, done a bit better or expecting to do a bit better. What's the key lift here if anything? Are you flexing reinvestment in the business as a NIMS holding and better than first thought?

Speaker #3: So with the question, what are the key I didn't quite hear that, Chris. What are the key drivers, did you say?

Chris Wyke: Sorry, was the question what are the key I didn't quite hear that, Chris, actually. What are the key drivers did you say?

Speaker #2: Yeah, just key drivers of the upgrade in MA Money, please.

Cameron Halkett: Yeah, just key drivers of the upgrade in MA Money, please.

Speaker #3: Yeah. I think we're continually we are continuing to do what we've done, which is stick to the basics of the fast turnaround times. The investment in the tech, the productivity person per full-time employee, has really risen over the last 12 months.

Chris Wyke: Yeah. I think we are continuing to do what we've done, which is stick to the basics of the fast turnaround times. The investment in the tech, the productivity person per full-time employee has really risen over the last 12 months. We have taken on more BDM staff over the last year as well, but it's really keeping efficient tech, clear underwriting standards, and fast turnaround times to service the market promptly. We built our entire tech stack from scratch when we started that business, so we haven't been encumbered by legacy systems, which really has enabled us to be very forward-looking to cope with this level of growth and maintain our turnaround times. It's just about really continuing to give good service to the market, get a prompt yes or no to brokers and just keep doing the same.

Speaker #3: And we have taken on more BDM staff over the last year as well, but it's really keeping efficient tech clear underwriting standards and fast turnaround times.

Speaker #3: To service the market promptly. We built our entire tech stack from scratch when we started that business. So we haven't been encumbered by legacy systems, which really has enabled us to be very forward-looking to cope with this level of growth and maintain our turnaround times.

Speaker #3: And so it's just about really continuing to give good service to the market and get a prompt yes or no to brokers and just keep doing the same.

Speaker #2: Yeah. And just the last one then would be around the new three-year targets. I want to prelude this just by saying this is definitely not a criticism, but last time around the targets you ended up missing on the EBITDA margin side of things for '26, as you obviously doubled down on investment.

Cameron Halkett: Yeah. Just the last one then would be around the new three-year targets. I want to prelude this just by saying this is definitely not a criticism, but last time around the targets, you ended up missing on the EBITDA margin side of things for 2026 as you obviously doubled down on investment. I suppose, like as people look at these new FY29 targets, do you think you hold yourselves to that EBITDA margin guidance range you provided, just, I suppose, so people can get conviction, I suppose, on that trajectory?

Speaker #2: I suppose if people look at these new FY29 targets, do you think you hold yourselves to that EBITDA margin guidance range you provided? Just I suppose so people can get conviction, I suppose, on that trajectory.

Speaker #3: Yeah, we're absolutely put a lot of thought around these targets and accept the '26 target wasn't met. We have obviously invested heavily in the business, but we do see and you see it in this result, we've seen some margin expansion in the first half of FY26, and we continue to see opportunities to expand the margin over the following three and a half years.

Chris Wyke: Yeah. We have absolutely put a lot of thought around these targets. Except the 2026 target was not met. We have obviously invested heavily in the business, but we do see, and you have seen in this result, we have seen some margin expansion in the H1 of FY26, and we continue to see opportunities to expand the margin over the following 3 and a half years. So it is a steady race in terms of expanding that margin, so we look at that pretty steadily over the outlook program period.

Speaker #3: So it's a steady race in terms of expanding that margin. So we look at that pretty steadily over the outlook period.

Speaker #2: That's really helpful. Thanks again, guys.

Cameron Halkett: That is really helpful. Thanks again, guys. Well done.

Speaker #1: Thank you. The next question comes from Anthony Hou with Org Minute. Please go ahead.

Operator: Thank you. The next question comes from Anthony Hu with Ord Minnett. Please go ahead.

Speaker #4: Good morning. Thanks for the opportunity. My first question is just from asset management. Just looking at the net flows, things you talked about, you're talking about the first six weeks at $166 million.

Anthony Hu: Good morning. Thanks for the opportunity. My first question is just on asset management. Just looking at net flows that you talked about, you are talking about the first 6 weeks at AUD 166 million. That has already gone above the past 2 quarters. Just wondering if you can give some insight into that. Do you think that is partly a timing issue where there is a bit of a lag or people holding back, or do you think there is something there to indicate that it is more durable?

Anthony Hoo: Good morning. Thanks for the opportunity. My first question is just on asset management. Just looking at net flows that you talked about, you are talking about the first 6 weeks at AUD 166 million. That has already gone above the past 2 quarters. Just wondering if you can give some insight into that. Do you think that is partly a timing issue where there is a bit of a lag or people holding back, or do you think there is something there to indicate that it is more durable?

Speaker #4: That's already a lot above the past two quarters. Just wondering if you can give us some insight into that. Is that do you think that's partly a timing issue where there was a bit of a lag or people holding back, or do you think there's something there to indicate that it's more doable?

Speaker #3: I think when you look at the flows, so you think about it through both lenses. You've had in excess of $400 million of gross flows, I think, in that first sort of six-week period, sitting alongside $166 million of net flows.

Julian Biggins: I think when you look at the flows, you think about it through both lenses. You have had in excess of AUD 400 million of gross flows, I think, in that first six-week period, sitting alongside AUD 166 million of net flows. The top of the funnel is working exceptionally well. There is obviously elevated redemptions at the moment through some of our more liquid funds. But the top of the funnel is putting a lot of new capital into the system, so that is okay. The 166 was a strong number and probably caught us a bit by surprise, to be honest, in the first six weeks, given what we have seen in the H2. But a lot of that money is flowing into the MA Priority Income Fund, and investors are very attracted to the defensive nature of the asset-backed security class and also the buffer that is provided in that fund.

Speaker #3: The top of the funnel is working exceptionally well. Obviously, there's an elevator sort of redemption at the moment, through some of our liquids and more liquid funds.

Speaker #3: But the top of the funnel is putting a lot of new capital into the system. So that's okay. The $166 was a strong number and probably caught us a bit by surprise beyond in the first six weeks, given what we've seen in the second half.

Speaker #3: But a lot of that money is flowing into the priority income fund. And investors are very attracted to the defensive nature of the asset-backed security class and also the buffer that's provided in that fund.

Speaker #3: So it's very hard to predict in this market where that goes through September, but we're seeing very strong interest in that in those opportunities.

Julian Biggins: It is very hard to predict in this market where that goes through into H1, but we are seeing very strong interest in those opportunities. The other thing I would say, we are only just launching our core real estate opportunity, the single asset fund. That will see another opportunity for net inflows through the more traditional channels that we just did not have in the H1, and that gives us a bit of excitement as well.

Speaker #3: The other thing I'd say, we're only just launching our core real estate opportunities that seem to asset funds. And that will see another opportunity for net inflows through the more traditional channels.

Speaker #3: That we just didn't have in the first half and that gives us a bit of excitement as well.

Speaker #4: And then in terms of one day, if you talk about the distribution channels in that business and the private credit, how that's going, are you expanding the distribution network in your?

Anthony Hu: I wonder if you can talk about the distribution channels in that business and the private credit, how that is going. Are you expanding the distribution network in Europe?

Anthony Hoo: I wonder if you can talk about the distribution channels in that business and the private credit, how that is going. Are you expanding the distribution network in Europe?

Speaker #3: Selectively, like we've seen both international and domestic flows strong in the second half into the private credit fund. We've been we've got a pretty mature distribution channel both in Australia and through Asia.

Julian Biggins: Selectively. We have seen both international and domestic flows strong in the H2 into the private credit fund. We have got a pretty mature distribution channel, both in Australia and through Asia. We have made some investments through that Singapore, Hong Kong family office institutional market, that we have not seen materially contribute to the numbers yet. But that is something that we are focused on in terms of throwing out the distribution channel. The US is a separate leg as well. We have seen those. Obviously, the residential market is weighing on people's mind around real estate credit, but that is not a surprise given the nature of the market at the moment. That is really the trends we are seeing.

Speaker #3: And where we have made some investments through that Singapore-Hong Kong family office institutional market, that we haven't seen materially contribute to the numbers yet.

Speaker #3: But that's something that we are focused on in terms of the throwing out the distribution channel. And the US is a separate leg as well.

Speaker #3: So we have seen those. Obviously, the residential market's weighing on people's mind around real estate credit, but that's not a surprise given the sort of nature of the market at the moment.

Speaker #3: And that's really the trends we're seeing.

Speaker #4: Great. Thank you. Maybe I can ask one more question. Just if you look at your FY29 targets, for example, if we look at the MA Money target, can you talk about sort of going forward over the next three years, is there any sort around the client base that you're going after, planning any changes there in terms of how the business is positioned or is it essentially more of the same, more of what you're doing?

Anthony Hu: Great. Thank you. Can I ask one more question? If you look at your FY29 targets, for example, if we look at the MA Money target. Can you talk about going forward over the next three years, is there any thought around the client base that you are going after, planning any changes there in terms of how the business is positioned, or is it essentially more of the same of what you have been doing?

Anthony Hoo: Great. Thank you. Can I ask one more question? If you look at your FY29 targets, for example, if we look at the MA Money target. Can you talk about going forward over the next three years, is there any thought around the client base that you are going after, planning any changes there in terms of how the business is positioned, or is it essentially more of the same of what you have been doing?

Speaker #3: Yeah, it's Chris here. It is very much more of the same. We are constantly looking at our products in the market, though, and how to refine and optimize them.

Julian Biggins: Yeah. Chris, it is very much more of the same. We are constantly looking at our products in market, though, and how to refine and optimize them. But we just continue to do the same fundamental good service and fast turnaround times. We are not, on the loan product side, forecasting any form of substantial innovation at this stage. It is continuing the business as usual.

Chris Wyke: Yeah. Chris, it is very much more of the same. We are constantly looking at our products in market, though, and how to refine and optimize them. But we just continue to do the same fundamental good service and fast turnaround times. We are not, on the loan product side, forecasting any form of substantial innovation at this stage. It is continuing the business as usual.

Speaker #3: But we just continue to do the same fundamental good service and fast turnaround times. So we are not on the loan product side forecasting any form of substantial innovation at this stage.

Speaker #3: It is continuing the business as usual.

Anthony Hu: Okay, great. That is helpful. I will leave it there. Thank you.

Anthony Hoo: Okay, great. That is helpful. I will leave it there. Thank you.

Speaker #4: Okay, great. That covers it. I'll leave you there. Thank you.

Julian Biggins: Thanks, Evan.

Speaker #3: Anthony.

Speaker #1: Thank you. The next question comes from Richard Cole with Morgan's. Please go ahead.

Operator: Thank you. The next question comes from Richard Coles with Morgans. Please go ahead.

Speaker #2: Okay, guys. Just a question on MA Money. Can you maybe talk to where you think the return metrics for that business will get to over time as it matures?

Richard Coles: Okay. Guys, just a question on MA Money. Can you maybe talk to where you think the return metrics for that business will get to over time as it matures? What's a reasonable level to think the ROE can get to or some of the profitability ratios we should think for that business to understand the value it's creating as it's growing?

Speaker #2: What's a reasonable level to think the ROE can get to, or some of the more the profitability ratios we should think for that business to understand the sort of the value it's creating as it's growing?

Speaker #3: Yeah, I think with something quite consistent around the way we look at the business headlines, really, in relation to the NIM, we are at the 1.2 to 1.4 range.

Julian Biggins: Yeah, I think we've been quite consistent around the way we look at the business headlines really in relation to the NIM. We are at the 1.2 to 1.4 range. EBITDA margins have come up.

Speaker #3: And EBITDA margins, yeah, to come up 44%, 45 to 50%. Yeah, probably on the EBITDA margins. We may look to respond to the market and flex pricing look at volume.

Michael Leonard: 44%.

Julian Biggins: 45% to 50%, yeah, probably on the EBITDA margins. We may look to respond to the market and flex pricing, look at volume. One thing that we are also evaluating is whether or not in the future we look at different funding models for the growth in the loan book. We've spoken about in the past, as we come through this 2026 year, because obviously we've put out our NPAT targets. As we come through this 2026 year, whether we look at a more asset management style model associated with those home loans, whether we look at managing whole loans with third parties and whole loan sales. That's something that strategically we're contemplating, and that will probably play out over the next three years. Otherwise, yeah, that hopefully gives you enough of a feel for the metrics of the volume and the margins.

Speaker #3: One thing that we are we are also evaluating is whether or not in the future we look at different funding models for the growth in the loan book.

Speaker #3: We've spoken about in the past, so we come through this 2026 year because obviously we've put out our impact targets. As we come through this 2026 year, whether we look at a more asset management style model associated with those home loans, whether we look at managing whole loans with third parties and whole loan sales, that's something that strategically we're contemplating.

Speaker #3: And that will probably play out over the next three years. But otherwise, yeah, that hopefully gives you enough of a feel for the metrics of the volume and the margins.

Richard Coles: Just repeat that margin again. Sorry, your target was at 45% to 50%. Is that the way to be? Sorry.

Speaker #2: Yeah, so just repeat that, Marjorie. I'm sorry. Your target, was it 45 to 50? Is that the way to think? Sorry.

Richard Coles: Just repeat that margin again. Sorry, your target was at 45% to 50%. Is that the way to be? Sorry.

Speaker #3: Yeah, we've definitely seen that improvement in sort of this half has lifted to 44 from where it was in the previous comparison period of 24%, which continued to improve or that's the expectation for sort of the year ahead.

Julian Biggins: Yeah, we have definitely seen that improvement in this H1. It has lifted to 44% from where it was in the previous comparison period of 24%. We would see that continue to improve or that is the expectation for the year ahead. What I will say is we are constantly looking at our tech and optimizing our tech. I have sort of flagged it for a bit of tech spend that may be coming through this year as well. That might be something to watch out for at the full year. Looking beyond that and thinking on a more normalized basis, yeah, that 45% to 50% zip code on the EBITDA margin.

Speaker #3: Yeah, what I will say is we are constantly looking at our tech and optimizing our tech and our sort of flagged it for a bit of tech spend that may be coming through this year as well.

Speaker #3: So that might be something to watch out for at the full year. But looking beyond that and thinking on a more normalized basis, yeah, that 45 to 50% zip code on the EBITDA margin.

Speaker #2: Okay. And just a second one on asset management with the tax changes, are you thinking of any new products in that space? Given I guess the greater focus on income, frank dividends, those sort of things going forward, are you thinking of anything new in the space to sort of try and capture what's a fair change in the market?

Richard Coles: Just a second one on asset management with the tax changes. Are you thinking of any new products in that space given, I guess, the greater focus on income, franked dividends, those sort of things going forward? Are you thinking of anything new in the space to sort of try and capture what is a fair change in the market?

Speaker #3: I think we're always practically looking at different investment products that meet the market. The legislation is clearly directional. Clearly, income's going to win over high sort of capital sort of gains.

Julian Biggins: I think we are always practically looking at different investment products that meet the market. The legislation is clearly directional. Clearly income is going to win over high capital sort of gain in terms of the tax rate. There is also some interesting sort of, I guess, alternative structures that can minimize tax in an effective way. So we are definitely looking very closely at it. In terms of behavior from our investor base, we are really seeing strong demand for income. I think that is probably going to play to our forehand as the legislation rolls through. There is some other nuanced product that we are sort of looking at around sort of more tax-efficient structures. It is really watch and see a bit in terms of where the legislation lands as well.

Speaker #3: In terms of the tax rate, there's also some interesting sort of, I guess, alternative structures that can minimize tax in an effective way. So we're definitely looking very closely at it.

Speaker #3: In terms of behavior from our investor base, we're really seeing strong demand for income. So I think that's probably going to play to our forehand as the legislation rolls through.

Speaker #3: And there's some other nuanced products that we're sort of looking at around sort of more tax efficient structures. But it's really watch and see a bit in terms of where the legislation lands as well.

Speaker #2: Thanks very much, guys. Cheers. Appreciate it.

Richard Coles: Thanks very much for that. Cheers, appreciate it.

Speaker #3: Thanks, guys.

Julian Biggins: Thanks, Ollie.

Speaker #1: Thank you. The next question comes from Mark Tomlins with Trim Capital. Please go ahead.

Operator: Thank you. The next question comes from Mark Tomlin with Twin Capital. Please go ahead.

Speaker #4: Good morning. I was going to ask about your three-year targets as well. Your revenue per executive target for corporate advisory has been flat for the past decade, despite the inflation that has occurred over time.

Mark Tomlin: Good morning. I was going to ask about your three-year targets as well. Your revenue per executive target for corporate advisory has been flat for the past decade, despite the inflation that has occurred over time. Do you anticipate that you might look to lift that target after this set of three-year targets?

[Analyst]: Good morning. I was going to ask about your three-year targets as well. Your revenue per executive target for corporate advisory has been flat for the past decade, despite the inflation that has occurred over time. Do you anticipate that you might look to lift that target after this set of three-year targets?

Speaker #4: Do you anticipate that you might look to lift that after this set of three-year targets?

Speaker #3: I think the corporate advisory target is really around the revenue per executive, which we've provided a fair bit of detail in the deck for the last 10 years since we've listed.

Julian Biggins: I think the corporate advisory target is really around the revenue per executive, which we've provided a fair bit of detail in the deck for the last 10 years since we've listed. It's been a very consistent measure for us around how productive an executive can be in the corporate advisory market in Australia. That's actually quite a strong metric. What's more important is getting the number of bankers and having the right structure in the corporate advisory business. We are really pleasing about that business and the growth of different verticals and how it's growing. That's been a really strong sort of growth engine in the last couple of years. Just looking at the numbers over the last 12 months, we've added nine bankers to the division in the last 12 months alone.

Speaker #3: It's been a very consistent measure for us around how productive an executive can be in the corporate advisory market in Australia. And that's actually quite a strong metric.

Speaker #3: So what's more important is getting the number of bankers and having the right structure in the corporate advisory business. Really pleasing about that business and the growth of the different verticals and how it's growing that's been a really strong sort of growth engine in the last sort of couple of years.

Speaker #3: And just looking at the numbers over the last 12 months, we've added nine bankers to the division in the last 12 months alone. So we've always been very steady in our growth around sort of making sure we get the right bankers that can work within our business and not trying to go out and be everything to everybody.

Julian Biggins: We've always been very steady in our growth around sort of making sure we get the right bankers to work within our business and not trying to go out and be everything to everybody. We've seen that team steadily grow over time, but that range is really quite big for us in terms of what we're aiming for each banker to achieve in Australia in this market.

Speaker #3: So we've seen that team steadily grow over time, but that range is really quite big for us in terms of what we're aiming for each banker to achieve in Australia in this market.

Speaker #4: Very good. Then with asset management, obviously, you're getting some great growth coming through in New Zealand from the active investor visa. How much in New Zealand is contributing to that asset management growth target?

Mark Tomlin: Very good. Then with asset management, obviously you're getting some great growth coming through in New Zealand from the Active Investor Plus visa. How much New Zealand is contributing to that asset management growth target? Could New Zealand hit AUD 1 billion over the three years?

[Analyst]: Very good. Then with asset management, obviously you're getting some great growth coming through in New Zealand from the Active Investor Plus visa. How much New Zealand is contributing to that asset management growth target? Could New Zealand hit AUD 1 billion over the three years?

Speaker #4: Could New Zealand hit a billion dollars over the three years?

Speaker #3: I think to be really clear around the asset under management target, we have 10 different sort of initiatives that are running around the world that could all contribute to the 24 billion, right?

Julian Biggins: I think, to be really clear around the AUM target, we have 10 different sort of initiatives that are running around the world that could all contribute to the AUD 24 billion, right? We're not calling out this one's in or this one's out. It's the whole business that will deliver the target. In terms of the opportunity in New Zealand, could it be AUD 1 billion? I think that's an elevated sort of claim. I think what we are seeing, though, is a very healthy pipeline of demand. We're sitting here at NZD 100 million today. Could that contribute NZD 100 or NZD 300 million a year? Under the current regime, yes. But there's obviously the investment piece is also obviously linked to both the underlying sort of demand for the product, also the product sort of shape and form as well.

Speaker #3: So we're not calling out this one's in or this one's out. It's the whole business that will deliver the target. In terms of the opportunity in New Zealand, could it be a billion dollars?

Speaker #3: I think that's an elevated sort of claim. I think what we are seeing, though, is a very healthy pipeline of demand. We're sitting here at 100 million today.

Speaker #3: Could that contribute 100 or 200 million dollars a year? Under the current regime, yes, but these are obviously the investment visas also obviously linked to both the underlying sort of demand for the product, of course, so the product sort of shape and form as well.

Speaker #4: Okay. And then if I look back, the last set of three-year targets, you made a few acquisitions over that time, a couple of bolt-ons that really helped achieving that growth.

Mark Tomlin: Okay. If I look back the last set of three-year targets, you made a few acquisitions over that time, a couple of bolt-ons that really helped with achieving that growth. Do you anticipate you might make any bolt-on acquisitions over the next three years, which might help you achieve those targets more rapidly?

[Analyst]: Okay. If I look back the last set of three-year targets, you made a few acquisitions over that time, a couple of bolt-ons that really helped with achieving that growth. Do you anticipate you might make any bolt-on acquisitions over the next three years, which might help you achieve those targets more rapidly?

Speaker #4: Do you anticipate you might make any bolt-on acquisitions over the next three years, which might help you achieve those targets more rapidly?

Speaker #3: It's impossible to say. We look at a lot of different things. I know Chris and I look at stuff constantly, but we're very disciplined in what we actually buy.

Julian Biggins: It's impossible to say. We look at a lot of different things. I know Chris and I look at this stuff constantly, but we're very disciplined in what we actually buy, as you can see through our track record. Only time could answer that question.

Speaker #3: As you can see through our track record, but only Tom could answer that question.

Speaker #4: Very nice. And then separately, you've got really good increase in revenue per broker coming through. Obviously, you mentioned that you've looked to streamline the number of brokers.

Mark Tomlin: Fair enough. Separately, you've got really good increase in revenue per broker coming through. Obviously, you mentioned that you've looked to streamline the number of brokers you've got and optimize towards the more active, more profitable ones, and that's been part of the reason for the drop back in market share. How much of that increase in revenue per broker is actually attributable to your software offerings, such as Middle, that you've been using to grow?

[Analyst]: Fair enough. Separately, you've got really good increase in revenue per broker coming through. Obviously, you mentioned that you've looked to streamline the number of brokers you've got and optimize towards the more active, more profitable ones, and that's been part of the reason for the drop back in market share. How much of that increase in revenue per broker is actually attributable to your software offerings, such as Middle, that you've been using to grow?

Speaker #4: You've gotten optimized towards the more active, more profitable ones and that's been part of the reason for the drop back in market share. But how much of that increase in revenue per broker is actually attributable to your software offering such as MIDL that you're using to grow?

Speaker #3: I'd have to take that on notice in terms of the breakout I mean, MIDL, we've actually done with MIDL I will take the opportunity to give a bit of color on that.

Julian Biggins: I'd have to take that on notice in terms of the breakout. What we've actually done with Middle, I will take the opportunity to give a bit of color on that, if I may. That has now been fully fused and integrated into the Finsure software platform. I think we're at about 2,500, roughly, brokers that are now using Middle, and that will end up becoming, it's being rolled out across the platform. I see those becoming fairly integrated. I would be hopeful, well into our position that really over the next six months, the entire broker network in Finsure utilizes Middle. That again, is more value add. Brokers can see that. It does allow us then to look at increasing that revenue per broker. As it pertains to specific splits and costs, I'll have to take that on notice and revert.

Chris Wyke: I'd have to take that on notice in terms of the breakout. What we've actually done with Middle, I will take the opportunity to give a bit of color on that, if I may. That has now been fully fused and integrated into the Finsure software platform. I think we're at about 2,500, roughly, brokers that are now using Middle, and that will end up becoming, it's being rolled out across the platform. I see those becoming fairly integrated. I would be hopeful, well into our position that really over the next six months, the entire broker network in Finsure utilizes Middle. That again, is more value add. Brokers can see that. It does allow us then to look at increasing that revenue per broker. As it pertains to specific splits and costs, I'll have to take that on notice and revert.

Speaker #3: I may. That has now been fully fused and integrated into the FinSure software platform. And so I think we're at about two and a half thousand, roughly, brokers that are now using MIDL, and that will end up becoming it's being rolled out across the platform.

Speaker #3: So I see those becoming fairly integrated. So I would be hopeful well, it's often positioned at really over the next six months the entire broker network and FinSure utilizes MIDL.

Speaker #3: That again is more value add, brokers can see that. It does allow us then to look at increasing that revenue per broker. But as it pertains to specific splits and wholesale I'll have to take that on notice and refer.

Speaker #4: Okay. Much appreciated. Thanks very much for that. That's all from me.

Mark Tomlin: Okay. Much appreciated. Thanks very much for that. That's all from me.

[Analyst]: Okay. Much appreciated. Thanks very much for that. That's all from me.

Speaker #1: Thank you. The next question comes from Tim Piper with Jargon. Please go ahead.

Operator: Thank you. The next question comes from Tim Piper with Jarden. Please go ahead.

Speaker #5: Hey, good morning, team. Just a first one on seasonality. You've given a sort of good outlook commentary around what you're expecting through the second half, but if we look historically at what sort of EBITDA seasonality 1H2H has been any comments around what you're expecting for this year?

Tim Piper: Hey, good morning, team. Just the first one on seasonality. You've given a good outlook commentary around what you're expecting through the H2, but if we look historically at what EBITDA seasonality, H1, H2 been, any comments around what you're expecting for this year?

Speaker #3: Well, I think Tim would be pretty similar to the past. I think we sort of talk at a high level around low 40s to sort of 60 sort of split.

Julian Biggins: Well, I think, Tim, it'd be pretty similar to the past. I think we talked and highlighted around the low 40s to 60 split. I think it's probably something similar to that in the year ahead. So not necessarily giving guidance, but it'd be pretty similar to what it's been in the past, I would expect, excluding the large notable item that is.

Speaker #3: I think it's probably something similar to that in the year ahead. So not necessarily giving guidance, but it'd be pretty similar to what it's been in the past.

Speaker #3: I would expect excluding the large noble item that is the.

Speaker #5: Got you. Just on the follow-up on the trading update around the net flows, which was really strong acceleration from what you'd been seeing probably through the second quarter of '26.

Tim Piper: Got you. Just on a follow-up on the trading update around the net flows, which was a really strong acceleration from what you had been seeing probably through Q2 2026. Just breaking that down, it looks like maybe AUD 100 million came from the MA Priority Income Fund. The other AUD 66 million, is AUD 30 million of that the raising for the MA Growth Partners Fund and then the other AUD 30 odd or AUD 36 odd, is that across some of those transactions that you have done in retail and hospitality? Just a bit more detail on that mix.

Speaker #5: I mean, just breaking that down, it looks like maybe 100 million came from the priority income fund. The other 66, so is 30 of that the raising for the MA growth partners fund?

Speaker #5: And then the other 30 odd or 36 odd, is that across some of those transactions that you've done in retail and hospitality? Just a bit more detail on that mix.

Speaker #3: There'd be a little bit for hospitality. There'd be none in there for the retail shopping centers. They're only hitting the runway right now. But I don't know if they've been able to color market.

Julian Biggins: There will be a little bit for hospitality. There will be none in there for the retail shopping center. They are only hitting the runway right now. I do not know if there is any other color, Mike.

Speaker #3: No, I think you're right, Tim, on the 30 mil that we've raised for MA growth. And then, yeah, it's really private credit outside of that, particularly the priority income fund.

Michael Leonard: No, I think you are right, Tim, on the AUD 30 million that we raised for MA Growth. Then, yeah, it is really private credit outside of that, particularly the MA Priority Income Fund. So yeah, there is a couple of fitting more updates for Redcape. Your numbers are not far off, but the retail shopping centers, obviously, they have not settled yet. So that is to come.

Speaker #3: So yeah, the couple of fitting all around that for Red Cape. But yeah, then your numbers are far off. But the retail shopping centers obviously they've not settled yet.

Speaker #3: So that's to come.

Speaker #5: Got you. That's helpful. And I mean, assumably, you would think most of this acceleration in flows in private credit will continue into the more income-style funds.

Tim Piper: Got you. That is helpful. Assumedly, you would think most of this acceleration in flows in private credit will continue into the more income style funds. You kind of referenced real estate credit being tougher there. I think you have probably gone past the point where repayments has overtaken deployment there and the book is probably shrinking. Do you kind of expect that to continue through H2 as is, or are you seeing any sort of green shoots around deployment opportunities in that space?

Speaker #5: You kind of referenced real estate credit being tougher there. I mean, I think you've probably gone past the point where repayments has overtaken deployment there and the book is probably shrinking.

Speaker #5: Do you kind of expect that to continue through the second half as is, or are you seeing any sort of green shoots around deployment opportunities in that space?

Speaker #3: I think it's a little bit early to say there's green shoots in the market. You can see it through the sort of what's being announced through the big sort of residential developers and their Ford books.

Julian Biggins: I think it is a little bit early to say there is green shoots in the market. You can see it through the sort of, what is being announced through the big sort of residential developers and their board books. It is just an uncertain period, right? Our flows have been neutral to slightly down in terms of negative flows in real estate credit over 6 months. We do not see that changing materially. There is a fair bit of noise out there, but we are keeping a very close eye on it, Tim.

Speaker #3: It's just an uncertain period, right? So our flows have been neutral to slightly down in terms of negative flows in real estate credit over the six months.

Speaker #3: We don't see that changing materially. There's a bit of noise out there. But we're keeping a very close eye on it, Tim.

Speaker #5: Got you. One last one. Obviously, MA money momentum is still very strong and you've upgraded the guidance there. Can you maybe just give us a little bit of additional information around what the mix of the originations and settlements look like in that business across sort of investor versus, I don't know, occupied versus SMSF?

Tim Piper: Got you. One last one. Obviously, MA Money momentum is still very strong, and you have upgraded the guidance there. Can you maybe just give us a little bit of additional information around what the mix of the originations and settlements look like in that business, across sort of investor versus owner-occupied versus SMSF, and whether over the last few months there has sort of been a notable change in that mix at all? Because the overall run rate is still very strong within that product as the market kind of cools.

Speaker #5: And whether over the last few months there's sort of been a notable change in that mix at all? Because the overall run rate is still very strong within that product as the market kind of cools.

Speaker #3: I think it's been relatively stable sort of a 50/50 investors are owner rock. I think maybe it bounced around from month to month. So no doubt in the last months with SMSF, I think there was probably a pick up there in terms of investors.

Julian Biggins: I think it has been relatively stable, sort of a 50/50 investor to owner oc. I think maybe it is balanced around from month to month. No doubt in the last month with SMSF, I think there was probably a pick up there in terms of investor. But broadly over the last 6 months, it has been relatively stable in terms of the investor, owner oc mix.

Speaker #3: But broadly over the last six months, it's been relatively stable. In terms of the investor owner rock mix. Yeah, our SMSF fee rate prior to the announcements around the future of SMSF, I was just thinking of real estate.

Michael Leonard: Our SMSF fee rate prior to the announcements around the future of SMSF, purchasing of real estate was quite modest. We are not going to be cycling against a big SMSF headwind. We have seen in the last month and change a bit of a spike in SMSF activity as a lot of folks are really focusing on getting in before the deadline. I do not think there will be anything profound that comes from our volume and profile, though, on a post-September basis, which is when that should all pretty much burn off.

Speaker #3: Was quite modest. So we're not going to be cycling against a big SMSF headwind. We have seen in the last month and change a bit of a spike in SMSF activity.

Speaker #3: As a lot of folks are really focusing on getting in before the deadline. That I don't think there'll be anything profound that comes from our volume and profile, though, on a post-September basis, which is when that's all pretty much burnt off.

Speaker #5: Understood. That's helpful. So I just want one last one on the '29 targets. Obviously, you're very strong headline levels, comfortably above where consensus sits at the moment.

Tim Piper: Understood. That is helpful. Sorry, just one last one. On the 2029 targets, obviously all very strong headline levels, comfortably above where consensus sits at the moment. On the asset management piece, AUD 24 billion, the mix of asset management has obviously continued to evolve over time. In getting to that 38% to 40% group EBITDA margin, what are your assumptions around the trend in recurring revenue margin and overall revenue margin on that base of AUD 24 billion? Does it continue to sort of moderate lower as it has over time? What do you think the right sort of revenue margin on that size of AUM is?

Speaker #5: Just on the asset management piece, '24 billion, I mean, the mix of asset management is obviously continued to evolve over time. In getting to that 38 to 40 percent group EBITDA margin, what do you kind of assumptions around the trend in recurring revenue margin and overall revenue margin on that base of '24 billion?

Speaker #5: Does it continue to sort of moderate lower as it has over time, or what do you think the right sort of revenue margin on that size of AUM is?

Speaker #3: Yeah, I think we see when you think about the balance of the portfolio at the moment, obviously, this is very cycle dependent. Real estate and private credit are sort of growing at similar rates.

Julian Biggins: Well, I think we see when you think about the balance of the portfolio at the moment, obviously this is very cycle dependent. Real estate and private credit are sort of growing at similar rates, but that can change very quickly. In terms of the overall sort of margin, I think, depending on that mix, you obviously either focus on the total fee margin, where you have performance and transaction fees a bit more elevated, or you are sort of down at the sort of recurring and the base margin. We have seen the overall margin mix sort of relatively stable. It depends a little bit on listed markets are a little bit softer, a little bit lower on margin, and so is the US. But overall, pretty stable environment and we will see what happens with the rates market.

Speaker #3: But that can change very quickly. In terms of the overall sort of margin, I think depending on that mix, you obviously either focus on the total fee margin where you have performance and transaction fees a bit more elevated, or you're sort of down at a sort of recurring in the base margin.

Speaker #3: And we've seen the overall margin mix sort of relatively stable. It depends a little bit on listed markets a little bit softer, a little bit lower margin.

Speaker #3: And so in the US, but overall pretty stable environment. We'll see what happens with the revenue margin.

Speaker #4: And then sort of any outlook, we sort of also see that improvement in transaction performance for the margins. That sort of lifting from the historical lows.

Michael Leonard: In the outlook, we are sort of also seeing that improvement in transaction performance. Fee margins are sort of lifting from the historical lows towards that. Then we are seeing the operating leverage coming out of MA Money. That seems to be continuing. So it is kind of providing and contributing to that EBITDA margin performance or outlook.

Speaker #4: Was that? And then we've seen the operating leverage coming out of MA money. That seems to be continuing. So we're kind of providing a contributing to that EBITDA margin performance.

Speaker #4: Or outlook.

Speaker #5: Got it. That's great. Well done. Sorry.

Tim Piper: Got it. That is great. One last.

Julian Biggins: I think-

Tim Piper: Sorry.

Speaker #3: No, I just think with the targets, Tim, there's obviously I think we've always been good at growing the top line, the sort of the growth in the business has been great.

Julian Biggins: I just think with the target, Tim, there is obviously, I think we have always been good at growing the top line. The sort of the growth in the business has been great. There is a bit of buff as a solution in margin, but we are not anticipating it. Not EBITDA margin, the recurring margin.

Speaker #3: There's a bit of buffer for some dilution in margin, but we're not anticipating it. Not EBITDA margin, the recurring margin.

Speaker #5: Yeah, that makes sense. Great. Thanks for taking the questions.

Tim Piper: Yeah, that makes sense. Great. Thanks for taking the questions.

Speaker #1: Thank you. As a reminder to ask a question, humans have stars and one. The next question comes from Peter Nelson with Global Solutions. Please go ahead.

Operator: Thank you. As a reminder, to ask a question, you may press star, then 1. The next question comes from Peter Nelson with Global Solutions. Please go ahead. We will move on. The next question is a follow-up from Cameron Halkett with Canaccord Genuity. Please go ahead.

Speaker #1: We'll move on. The next question is a follow-up from Cameron Halkett with Canaccorginuity. Please go ahead.

Speaker #5: Thanks for that, guys. Just two more. In the real estate space, as you're sort of looking to deploy at the moment, you've noted the sort of 500 million the pipeline that you're looking to complete by the balance of the year.

Cameron Halkett: Thanks for that, guys. Just two more. In the real estate space, as you are looking to deploy at the moment, you have noted the AUD 500 million in the pipeline that you will look to complete by the balance of the year. I suppose just your confidence in getting that done. Helpful if you can, I suppose, frame that conviction.

Speaker #5: I suppose just your confidence in getting that done. Helpful if you can, I suppose, frame that conviction.

Speaker #3: I would have high conviction, but yeah, it's a process that we're outraising the money for. We think the underlying demand from the investors for quality real estate, core real estate backed income, etc., is high.

Julian Biggins: Well, we would have high conviction, but it is a process that we are out raising the money for. We think the underlying demand from the investors for quality real estate, core real estate, backed income, et cetera, is high. We are at the start of the process. There are three different assets involved, and we would have a high conviction that we can get it done.

Speaker #3: We're at the start of the process. There's three different assets involved, and we'd have a high conviction that we can get it done.

Speaker #5: Yeah. And I suppose on that point, Julian, obviously, the first half was a bit quieter. But do you think a bit more generally, the environment's a bit harder to execute on given it does seem like shopping centre and more demand at the moment is particularly strong and that obviously might lead to some sharper cap rates that might make you guys obviously not execute on?

Cameron Halkett: Yeah, and I suppose on that point, Julian, obviously the H1 was a bit quieter, but do you think a bit more generally, the environment is a bit harder to execute on, given it does seem like shopping centers are in more demand at the moment, is particularly strong, and that obviously might lead to some sharper cap rates that might make you guys-

Julian Biggins: I think-

Cameron Halkett: obviously not execute on.

Speaker #3: And we've been active in the market and looking at things. And we have missed out on certain transactions for good reason. So I think the demand for shopping centres at the moment is more elevated than it was, say, 12 months ago.

Julian Biggins: Yeah, we've been active in the market and looking at things, and we have missed out on certain transactions for good reason. I think the demand for shopping centers at the moment is more elevated than it was, say, 12 months ago. The assets that we've secured, the three assets, are all off-market transactions, and that's important in terms of buying assets on the right terms for our investors. We're being selective in where we go. I still see a great opportunity. I think the important thing for me is around the fundamentals of assets. You've got construction costs are still elevated, supply is very constrained. You've got a bit of wage growth. You've got population growth. High-quality shopping centers are still a great place to invest, and our investors are agreeing with that. You've just got to buy the assets on the right terms.

Speaker #3: What the assets that we've secured, the three assets, are all off-market transactions. And that's important in terms of buying assets on the right terms for our investors.

Speaker #3: And so we're being selective in where we go. But yeah, I still see great opportunity. I think the important thing for me is around the fundamentals of assets.

Speaker #3: You've got construction costs are still elevated, supply is very constrained. You've got a bit of wage growth, you've got population growth, high-quality shopping centres are still a great place to invest and our investors are agreeing with that.

Speaker #3: You've just got to buy the assets in the right terms.

Cameron Halkett: Mm. Fair enough. The last one as a follow-up. Chris, just earlier in the year, I believe it was, MA had put out an announcement that you'd put together a partnership with CMB for an APAC credit fund, that was potentially going to be quite large as that would be deployed. Could we see flow come through from this calendar year, or has that been delayed? Just an update there would be helpful, please.

Speaker #5: Fair enough. And then the last one, as a follow-up, Chris, just earlier in the year, I believe it was MA had put out an announcement that you'd sort of put together a partnership with CMB for an APAC credit fund.

Speaker #5: That was potentially going to be quite large. There would be deployed. Could we see flow come through from that this calendar year, or has that been delayed?

Speaker #5: Just an update there to be helpful, please.

Speaker #3: So fund is up. We're live. Being marketed right now, there's actually a seminar going on. I can tell you on that front. Lifetime. But we should expect to see some come in between now and the end of the year.

Julian Biggins: Fund is up. We're live, being marketed. Right now, there's actually a seminar going on on that front, live time. We should expect to see some come in between now and the end of the year. There's been some already committed, but it's in the tens of millions of US dollars. Yeah, we would expect some more flows on that front between now and the end of the year.

Chris Wyke: Fund is up. We're live, being marketed. Right now, there's actually a seminar going on on that front, live time. We should expect to see some come in between now and the end of the year. There's been some already committed, but it's in the tens of millions of US dollars. Yeah, we would expect some more flows on that front between now and the end of the year.

Speaker #3: There's been some already. But it's in the terms of millions of US dollars. But yeah, we would expect some more flows on that front between now and the end of the year.

Speaker #5: Awesome. All right. Thank you again.

Cameron Halkett: Awesome. All right. Thank you again.

Speaker #3: Take care.

Julian Biggins: Thanks, Cam.

Speaker #1: Thank you. At this time, there are no further phone questions. I'll hand the call back to Julian Viggins for closing remarks.

Operator: Thank you. At this time, there are no further phone questions. I will hand the call back to Julian Biggins for closing remarks.

Speaker #3: Okay. Thanks, Tim. Thank you for everyone that take the time to listen. I know it's a busy day, and we look forward to catch up with those over the next couple of weeks.

Julian Biggins: Okay. Thanks, everyone. Thank you for everyone that has had the time to listen. I know it is a busy day, and we look forward to catching up with those over the next couple of weeks. Thanks.

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Half Year 2026 MA Financial Group Ltd Earnings Call

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