MFF Capital Investments reports August NTA, flags market overconfidence

MFF Capital Investments Limited reported its approximate monthly Net Tangible Assets (NTA) per share as $5.258 pre-tax and $4.372 after tax as of August 29, 2025. This represents an increase from June 30, 2025, when pre-tax NTA was $4.999 and after-tax NTA was $4.150. The company also announced an increased fully franked dividend of 9 cents per share, payable at the end of next month. MFF paid over $32.5m in tax for the month following realised gains.

During August, MFF’s portfolio experienced sales of approximately 4.8% of its value and purchases of about 0.9%, maintaining its “easing in and easing out” approach. The company noted ongoing portfolio company excellence, partially offset by geopolitical actions, rising populism, and broadening market overconfidence. Net cash as a percentage of investment assets (including net cash) was approximately 13.9%, with AUD net cash at 12.3%, USD at 0.7%, GBP at 1.9%, and SGD at 1.0%, offset by HKD borrowings of 2.1%.

MFF highlighted increasing difficulties and risks for businesses due to policy changes and rising taxes, which impact revenues, margins, and profitability. The company expressed concerns about market overconfidence and the potential for lower near-to-medium term future returns, advising against ignoring stretched market prices and emotional market behaviour. The US Government 10-year bond trading yield remained flat at approximately 4.23% p.a. despite political activities.