Ladies and gentlemen, thank you for standing by. Welcome to the MA Financial Group FY 2022 results briefing. I would now like to turn the call over to Julian Biggins, Joint Chief Executive Officer. Please go ahead.
Thank you, good morning, and welcome to the FY 2022 full year results for MA Financial Group. My name is Julian Biggins, Joint CEO of MA Financial, I'm joined here today by my fellow Joint CEO, Chris Wyke. Also in the room for today's conference call are Graham Lello, Chief Financial Officer, and Michael Leonard, Head of Investor Relations. Before we commence this morning, I'd like to acknowledge the traditional owners of the land and pay our respects to elders past and present. I'm pleased to report another record result today building on last year's momentum and performance. I'll now turn to slide 7 and some of the key highlights. Our key financial statistics have all grown significantly over the period. At the group level, underlying revenue exceeded AUD 300 billion for the first time, up 41% on the prior period.
Underlying earnings per share is up 29% to AUD 0.383, and this underpins an 18% increase in fully franked dividends to AUD 0.20 per share. Over the last two years, the group has increased underlying earnings by 60%. Dividend has doubled from AUD 0.10 to AUD 0.20 per share. Our divisional metrics were also strong, with AUM up 13% to AUD 7.8 billion, underpinned by record gross inflows at AUD 1.5 billion. The strength of these flows is obviously very pleasing when considered against the variable market conditions and demonstrates the strength of our diversified alternative asset offering and our unique distribution channels. Residential and specialty lines doubled as we continue to benefit from the relationship between our credit investing and lending and technology businesses.
We expect this number to grow quickly as we accelerate our growth in the AUD 2 trillion residential lending market. The underlying performance of Finsure has been very pleasing, with the quantum of managed loans increasing to AUD 91.1 billion over the period, up 37%. Corporate advisory and equity has delivered a resilient result given market conditions, with some timing differences in closing transactions impacting the overall results. The numbers demonstrate that MA Financial is delivering on a well-executed strategy. The diverse nature of the business provides us with the ability to navigate cycles. Turning forward to slide 8. Some of the detail around our results. The FY 2022 result was strong across all group metrics.
41% underlying revenue growth was underpinned by a nearly 50% increase in asset management revenue, which was driven by continued growth in base management fees, a strong performance fee contribution, and the settlement of Finsure in February 2022. Underlying earnings per share was up 29% after allowing for ongoing investment in future growth opportunities and building out the platform. Expenses increased 36% over the year. We see the level of expense growth moderating as we gain the benefits of scale, especially in the asset management business. MA Financial remains well capitalized with nearly AUD 100 billion of cash at the bank at the end of the year and the addition of a AUD 40 million working capital facility as extra flexibility. I'll now turn to slide 9, which illustrates our track record of growth.
The financial metrics on this slide all validate our strategy to pursue growth. We're very focused on scaling the business while also maintaining a level of investment to support future growth. This has been reflected in our growth to date, with some periods of very strong growth and periods of consolidation. Turning forward to high-level divisional performance on slide 10. One of the main highlights on this slide is asset management EBITDA growth of 78% on the prior period, and also the division contributing nearly 80% of the group's EBITDA. We'll save the detail on each division for later in the presentation and turn forward to slide 11. We continue to focus on executing on a consistent strategy. At the end of December, our recurring revenue run rate from asset management was AUD 138 billion per annum, up 22% on the prior December.
This, coupled with Finsure's run rate of AUD 24 million, provides over AUD 160 million of recurring revenue to start FY 2023, which provides us with a great foundation to start from. Growing our recurring revenue has been a core strategy for the group from the beginning. The results demonstrate that we are executing well on this strategy. The uniqueness of our distribution platform delivered against, again, with record gross flows of AUD 1.5 billion and non-migration related flows up 70% to AUD 1.3 billion. In FY 2022, less than 18% of our gross flows were from migration-related investor channels, which demonstrates the diversity in the distribution channels and our ability to adapt to changing conditions. We've always chosen to build out deep operational expertise to manage the assets we invest in. Having in-house operational expertise delivers better results to investors.
We've done this in both hospitality and real estate and also credit investing, where we have originated over 75% of our credit investments in-house or over AUD 2 billion of loans for our investors. Our lending and technology platform supports the credit investing team with deep insights and operational expertise that both provide access to new products and enhances decision-making. Over the last decade, we've invested a lot of time and money into building out a scalable asset management business. We're starting to see operating expense growth moderate in asset management as we now have the investment strategy teams largely in place, our distribution platform scaled, and have commenced along the path of digitizing our systems. The balance sheet remains well placed to take advantage of opportunities, and we continue to actively manage our assets.
Over the period, we sold AUD 30 million of Redcape securities, which provide seed capital to support the growth of new initiatives in the business. We continue to hold an AUD 85 million investment in the fund. This is a great example of recycling capital to support growth. Talent is key to what we do. Whether it's providing the best amenity, the right development program through MA Academy or the best performance-based incentive structure, we're always thinking about how to ensure we retain the absolute best team and culture. We spend a lot of time on people and have deep talent across the business to drive shareholder outcomes for long term. Turning forward to slide 13. The momentum from FY 22 has rolled into the first six weeks of FY 23. Asset management has had a good start with flows into our funds continuing at a record pace.
In the first six weeks, we've received AUD 252 million of gross inflows, which compares to AUD 111 million in the prior period. Our AUM hit AUD 8 billion in February. The credit funds continue to receive strong interest from a variety of investors, both domestic and international, covering investment platforms, wholesaler, and institutional investors. We continue to look to open up new markets to distribution and are well progressed in opening a Singapore office to focus on marketing our products in the region. Within the Asian region, Singapore represents a significant opportunity for us with the target market very familiar with Australian alternative assets. MA Money has commenced offering a suite of products to the broker market. We have seen significant interest from brokers and end customers.
In the first three weeks of February, we have settled AUD 20 million of residential loans and currently have over AUD 80 million of loan applications. This is a very good start for MA Money, and hopefully bodes well for it reaching scale quickly. Our Middlee t echnology offering has been well received in a pilot program, and we expect to move to a broader rollout shortly. In corporate advisory and equities, the start of FY 2023 has benefited from a couple of deals that were largely completed in FY 2022. Will be booked in FY 2023. The transactional pipeline remains strong with one notable engagement being our advisory role on the sale of Sun Cable. Equities have started the year better with volumes up and general market sentiment more positive than last year, which should support equity capital market activity, which was materially down in 2022.
Finally, earlier this month, we were pleased to announce the appointment of Giles Boddy as the new chief financial officer for the group. Giles is a highly credentialed financial executive. We look forward to him commencing with the business in March. He replaces our current CFO, Graham Lello , who has been a tremendous asset to the business. We thank him greatly for his efforts over the nearly six years. We'll hear from Graham little later on the financials. Turning to slide 14 and the outlook for the group. In terms of FY 2023, the momentum in the business is strong, and we have invested materially in future growth options. In regards to the various divisions, we make the following comments on outlook and will provide additional clarity as the year progresses.
In asset management, we anticipate recurring revenue to continue to grow, underpinned by embedded revenue growth from last year's inflows, and an expectation for inflows that grow off the FY 2022 base. Performance fees are expected to normalize in FY 2023 and return to levels more akin to prior years. Our pace of investment in asset management is slowing, and we expect to see some scaling benefits in FY 2023 and more in FY 2024 and beyond. In lending and technology, the pieces of the lending ecosystem are largely in place, and we're now accelerating the launch of our products and tech offering to the market. Finsure continues to attract brokers and grow its loan book, and coupled with our technology offering, is well placed to grow.
From a market perspective, we expect the Finsure platform to benefit from the AUD 350 billion of fixed-rate mortgages maturing in FY 2023. In the second half of FY 2022, we invested significantly in rebuilding MA Money and see this investment peaking in FY 2023 at a AUD 7 million-AUD 8 million EBITDA loss. We anticipate MA Money should be breakeven on a run rate basis in early FY 2024, and the target for MA Money is for it to deliver AUD 15 million-AUD 20 million of NPAT to the group by FY 2026. We're targeting AUD 1.1 million-AUD 1.3 million per head in corporate advisory. Our business has been incredibly resilient over the last 14 years, and our track record of achieving this target or thereabout is strong.
With the equity volumes bouncing a bit in FY 2023, we should support a strong contribution from our cash equities business. Overall, the business is trading well. We look forward to updating the market as the year progresses. Turning forward to slide 16 and a deeper look into asset management. Before we dive into the financial performance, I just wanted to spend a moment on some of the core philosophies in our asset management division. We are active managers of alternative assets. We've always focused on building deep operational expertise in the assets we manage. Whether it's MA Hotel Management and Hospitality, Retpro and Real Estate, or Lending Technology and Credit, we have deep operational expertise in the underlying investment. We manage alternative assets that generally have longer investment horizons that benefit from this operational capability. We're generally not traders of assets.
We originate assets, underwrite risk, and then monitor and actively manage the assets to maximize and realize the potential for our investors. We have access to a diversified pool of funding, whether it's banks, balance sheet or third-party investors. We've been focused on diversifying these sources over time to ensure that we can navigate through the cycle. We value diversity from a risk perspective and appreciate that market cycles occur. The appeal of certain investment strategies will also fluctuate through the cycle. Asset management has been built on these fundamentals. We believe that it ultimately delivers investors better outcomes in terms of performance, which builds our track record and enhances our reputation. Let's now talk to the financials on slide 17. Asset management has had a great year delivering 78% EBITDA growth year-on-year. Recurring revenue is up 36%, underpinned by significant inflows into our credit funds.
The credit thematic is expected to continue to benefit from macro tailwinds and a higher interest rate environment and demand for fixed income products as the population ages. Performance fees are also a highlight for the year, with a significant performance fee earned in hospitality as the assets benefited from strong operating performance and transaction evidence supporting valuations. As a note of detail, there have been a few adjustments in the way we classify our credit fund income this year, with the Priority Income Fund revenue and expenses moved from lending to asset management and the real estate credit origination fees moved from transaction fees to recurring credit fund income. In relation to the Priority Income Fund, the change reflects the fact that the income all relates to the third-party managed fund, therefore it belongs in asset management.
In regards to the real estate credit origination fees, the nature of this revenue stream and the tenure of these loans make these origination fees more recurring in nature, as the fees will be earned if the funds remain in place, and therefore, we've incorporated recurring credit fund income. Turning forward to slide 18. Our assets under management continue to grow in a diversified way. Our four-year AUM CAGR is in excess of 20% per annum, all organic growth, and we have been able to do so while maintaining or growing our base margin of 1.1%-1.2% of AUM. Turning forward to slide 19. Fund inflows were very pleasing over the period, and especially when you consider the uncertain market conditions and how our peers performed.
As we mentioned, credit funds attracted nearly AUD 1.1 billion of gross flows over the period, nearly double that of last year. Hospitality flows recommenced after delisting Redcape in October 2021 and relaunching the private fund structure. Real estate fund flows were impacted by a number of divestments and our cautious position on the real estate market, especially in the first half of FY 2022. In the second half of the year, we acquired Allendale Square opportunistically and raised AUD 70 million in a closed-end fund. From an investor channel perspective, the diversity in our distribution channels delivered again. Gross domestic flows are up 26% on the prior year, with broader platform access delivering strong flows into our credit strategies and hospitality being reactivated post delisting. International non-migration flows doubled over the year to be in excess of AUD 500 million.
Momentum continues in this channel, and it's very exciting to see the success of the strategy to diversify our distribution capability internationally. It really is a very unique and valuable channel. Migration flows were lower on the back of COVID disruptions in China and Hong Kong, which impacted processing applicants. Migration flows accounted for approximately 18% of gross flows and 15% of net flows. Institutional flows were AUD 141 million over the year, which was pleasing given we were still in the early phase of addressing this market. Despite this, we're pleased that our track record and investment strategies are appealing to a number of institutional clients. This slide highlights the diversity and uniqueness of our asset management business. Our funds are being established to attract long-term capital looking to invest in alternative asset classes where we have deep operational expertise.
Turning forward to an overview of our AUM by investor channels. Diversity is the key again, with the wagon wheel demonstrating that AUM continues to both grow and diversify. Turning forward to slide 21. To close out the asset management section, we just wanted to spend a moment on how credit investing and lending and technology work closely together to provide a unique offering to our investor base. As we've talked about, the credit investing business has grown very strongly in recent years as we've honed our strategy and built scalable funds with track records. Since 2017, the AUM has increased six-fold, and we have witnessed its growth accelerating in recent years. We believe this trend will continue. The ability to originate assets in-house is an important one. Of the AUD 2.5 billion of credit investments, we've originated over 75% in-house.
By originating assets, we ensure the risks are intimately understood and our underwriting standards are adhered to. In regards to how this works with lending and technology, we've built our platforms that provide access to products, insights into credit quality, and market conditions, or real-time data to provide in-depth analysis. We have deep operational expertise in the assets we manage, with the goal being to deliver superior outcomes to our investors. I'll now pass over to Chris to talk through the next couple of sections of the presentation.
Thanks, Julian. Turning to the lending and technology division on slide 23. During FY 2022, we continued to make significant investment into our lending and technology platform. The strategy behind this investment is to create a tech-enabled, highly scalable lending ecosystem that generates fee-based income, spread income, and delivers primary origination investment product to managed funds. This strategy is consistent with our overall strategic framework that we talk to every year, which is being a builder of valuable businesses in large addressable markets. The Australian mortgage market is large. It's in excess of AUD 2 trillion. Our lending and technology platform touches over 350,000 borrowers, by 2,640 brokers and 80 lenders. It sees loan settlements run about AUD 3.5 billion per month.
As Julian mentioned, we have a strong history and expertise in credit and lending through the asset management and advisory platforms. Again, I reiterate that these platforms generated over 75% of our AUD 2.5 billion in credit fund investments. This ability to source capital from our managed funds gives a considerable advantage to scale our lending activities in a capital-light manner and manufacture credit products for investors with powerful data and market insights from our lending ecosystem. On slide 24, you can see a graphical representation of how we view the components of the ecosystem that we have built all working together. On the outer wheel are the various business initiatives we have. These all contribute to delivering the key components of the ecosystem, which are the data insights, technology and service, capital management and efficiency, and asset creation from direct lending.
This integrated ecosystem is difficult to replicate and powerful. The components work together to better drive revenue generation across our various businesses, fund management and transaction fees in asset management. Fees and white label commissions within Finsure. Fees from the Middle software and spread income within MA Money. Turning to the financial performance of lending and technology on slide 25. It's important to remember that the build-out of this platform continued during FY 2022, including the AUD 160 million acquisition of Finsure and MA Money in the first quarter. As such, there are a few moving parts behind the underlying EBITDA movement from 2021 to 2022, which are easier explained by looking at the components of technology and lending separately. On slide 26, this sets out the underlying financials for the technology platform, which comprises Finsure and Middle.
As Finsure was purchased in FY 2022, and Middle was in product development and CapEx spend in FY 2021, there was no underlying P&L impact from this business in the financial year for 2021. FY 2022 reflects 11 months of Finsure performance and some minor expenses from Middle as it moved from development stage to operational. We're very pleased with the performance of the Finsure business since acquisition. The underlying EBITDA has performed better than expected, driven by strong growth in managed loans, which are up 37% year-on-year, broker numbers which are up 24%, and the revenue per broker on the expanded broker base marginally up. Slide 27 shows a longer-term graphic of these measures in addition to the broker market share that Finsure has, which has more than doubled since December 2016 to sit at just over 14% as at December 2022.
This success underpins our belief that Finsure offers a differentiated customer proposition for the brokers with value-adding service innovation and technology. Moving to our lending platform on slide 28. This includes our specialty finance activities as well as our residential lending operation, MA Money. There's been a fair bit of evolution and investment in this business during 2022. I'll spend a bit of time explaining the two key changes in the year. The first key change was in specialty finance, where we successfully executed our strategy of using our balance sheet and platform to originate assets for our credit funds. The impact of recycling these assets into a credit fund is that less spread income has been made for the year as the asset returns now go to managed fund investors.
The decline in spread income from specialty finance from AUD 13.8 million down to AUD 7.3 million. You can also follow the associated reduction in our balance sheet below in the performance drivers. The average invested capital that we had across our lending platform declined from AUD 54 million down to AUD 13 million. Although this capital made less return in absolute dollars, it worked more efficiently for us in FY 2022. As you can see, the return on average invested capital in specialty finance increased from 19% to nearly 63%. The second key change has been in MA Money. The increase in spread income from FY 2021 to FY 2022 stems from the acquisition and full consolidation of MA Money from March. I'll also call out the expenses increase in FY 2022, which drove the associated EBITDA loss for the year.
The increase in expenses largely relate to the cost of platform transformation within MA Money that we incurred. It was around AUD 4 million for the year and has led to the complete brand refresh and digitization of the platform with a revitalized and enlarged team. A fair few moving parts on this slide, leading to the overall EBITDA decline, given the loss of income from the asset recycling into managed funds and increased expenses given the investment into the platform. The understanding of these moves hopefully gives insight into the uniqueness and power of our business model. You can see this more graphically represented on slide 29.
The combination of the asset management business and our lending business allowed our loan book to increase 98% to 393 million, and our invested capital to decrease by 81% to close the year at AUD 8 million. The ability to tailor-make product for our asset management clients and considerably grow our lending activities in a capital light model or flexible model is highly synergistic and efficient. I'll also step through the corporate advisory and equities performance for the year. On slide 31, you can see the underlying divisional financials. Underlying EBITDA was down 37% on FY 2021 to AUD 13.9 million. This was largely due to challenging equity capital market conditions and equities revenue being impacted by softer market volumes. Corporate advisory fees were, however, resilient despite this weaker ACM activity, but ended up down 7%.
This represents revenue per executive of AUD 1 million, which is slightly below our target productivity range of AUD 1.1 million-AUD 1.3 million. The business advised on AUD 13.9 billion of transactions during the year, up from AUD 5.8 billion from FY 2021. As you can see on slide 32, activity was broadly spread across industry segments, highlighting the increased breadth of capability in the business following recent key hires. Expenses were in line with the prior year, despite average advisory headcount growing from 51 to 58 employees. We'll continue to develop and grow the corporate advisory and equities business, but we'll remain selective in our approach to hiring, always paying regard to the maintenance of the revenue per executive target range, cost discipline, and a consistency of productivity in the business over the long term.
Which you can see on slide 33, expressed in terms of revenue per executive going back 13 years to 2010. At this point, I'll now hand over to our CFO, Graham Lello , for a more detailed summary of the financials.
Thanks, Chris, good morning, everyone. Starting on slide 35, I thought I'd briefly touch on our OpEx drivers for the year. In this regard, there are two key impacts running through our results. One being acquisitions and the second, our continued platform investment. The acquisitions alone added over AUD 20 million of OpEx in the year, with this figure set to be slightly higher in 2023 as we cycle the full 12 months of ownership. On the platform investment side, 2022 saw material investment in headcount, with compensation expense increasing accordingly. Whilst the annualized effect of these new hires will be felt into 2023, expense growth will moderate significantly following a reduction in hiring activity from Q4 and some more recent consolidation activities. Whilst fixed comp increased, variable comp was restrained, reflecting a disciplined approach in light of current market conditions.
Other key expense items relate to our investment in new premises, with associated costs up over AUD 9 million in the full year. Feedback on the offices has been fantastic, and we expect them to be an ongoing advantage as the work environment continues to evolve post-COVID. Pleasingly, despite these expense increases, we've managed to improve our margins, and the combination of increased earnings and strong cash conversion means we have increased our full year dividend to AUD 0.20. While this is slightly above the top end of our payout range of 50%, we are confident in how we have balanced shareholder returns with the retention of good levels of cash for future investing. On the topic of investing, over the page on slide 36 is our operating balance sheet.
For those of you that read our stat accounts, you'll notice a much-changed statutory balance sheet against the prior year, with gross assets and liabilities increasing to incorporate our lending securitization structures and Finsure's commission trail book. On the other hand, our operating balance sheet, which you can see on the slide, aims to present a simpler view of both our invested capital and true economic exposures. The key highlight in the year was the successful acquisition of both Finsure and MA Money, with approximately AUD 120 million of capital raised at the turn of the year utilized for this purpose. Now, following settlement, both cash levels and the NTA were artificially high in the prior year because of this capital raising. Both metrics have returned to a more normalized position at year-end.
Another highlight was the implementation of a new AUD 40 million revolving corporate debt facility. This facility, which is currently undrawn, not only enhances our balance sheet flexibility, but gives us another lever to optimize our use of capital. Overall, borrowing levels were unchanged in the period. However, we did successfully refinance AUD 25 million of maturing notes, extending their tenor by five years and fixing their coupon at 5.75%. With over two-thirds of our debt carrying fixed coupons, we are comfortable with the balanced nature of our borrowing costs. Looking forward, we'll continue to maintain a dynamic but prudently capitalized balance sheet, which can facilitate both investment and existing platform growth and the ability to explore new opportunities. Over the page on slide 37, I'll touch on some of these investment highlights.
Our focus in the year was the ongoing support of key lending and asset management strategies, coupled with the drive on capital efficiency. This efficiency is best highlighted in our lending division, where we significantly reduced our invested capital while continuing to grow our loan book. Our ability to create investment product for our managed funds, especially in the credit space, materially reduces our requirement for growth capital. It's a powerful feature of our business model and a real competitive advantage. We continue to recycle our seed and co-investment capital, utilizing the proceeds to reinvest over AUD 110 million into new and existing strategies over the year. This dynamic nature of the balance sheet and our focus on capital efficiency will continue to underwrite our future growth.
For mine, the recycling of capital is a real strength, whilst the efficiency focus will be an important factor driving returns, not only in our lending business, but across the group as a whole. With this in mind, I'll now hand back to Julian to talk you through our strategic outlook.
Thank you, Graham. We'll start on slide 39. At MA Financial, we have a strong focus on building businesses, and this slide illustrates how our method translates into results. We look to leverage our capabilities and platform into large addressable markets where we have competitive edge, establishing a well-considered strategy and executing on it. We tend to start small by investing in new ideas, and then once comfortable, we push hard to scale the business. The growth rates on the slide show how effective the strategy has been. This is always a strong focus for us, and we are aligned as fellow shareholders. Turning forward to slide 40, where we talk to our medium and longer term investment strategy. We're a builder of valuable businesses in large addressable markets. We focus on scale and diversity in distribution channels.
We diversify our source of capital, and we have a strong balance sheet to support growth initiatives. Our advisory capabilities provide technical edge, and our stable and experienced management team is strongly aligned with investors. In closing, MA Financial has had another great year, and we are optimistic about the future. We believe that the business has great momentum, and we look forward to executing on our consistent strategy. On behalf of the management team, we're very proud and pleased with the performance of the group and look forward to sharing strong results with you in the future. With that, I'll hand back to the moderator for Q&A.
The floor is now open for your questions. To ask a question at this time, please press star one on your telephone keypad. If at any point you'd like to withdraw from the queue, please press star one again. You will be provided the opportunity to ask one question and one further follow-up question. We will take a moment to render our roster. Our first question comes from the line of Tim Piper from UBS. Please proceed.
Morning, Chris and Julian. Thanks for taking the questions. One question, One follow-up. I'll have to try to choose carefully. First one, just to understand the just quickly the movement in the Priority Income Fund movement. I think you called out on slide 17 that the PIF strategy's EBITDA was AUD 7.8 million for the year. Effectively, do we just think about on slide 28, the underlying EBITDA of the lending platforms is AUD -0.8 million. We just add the AUD 7.8 million back to that, like for likes of AUD 7 million EBITDA figure for that. Is that correct?
I think that's correct, Tim. I won't count that as a question because it's a statement of fact. You've got another question.
Okay. Thanks. Second one, what sort of drove the decision to sell down some of the direct investment in Redcape?
I think, you know, we made the investment into Redcape as a co-investment back in 2017. We invested AUD 60 million into the fund as part of seeding that initiative in hospitality. Over the journey, you know, in delisting Redcape, there was no longer a requirement to have that co-investment. The actual unit price has gone from AUD 1 to, I think, AUD 1.765 today. It's been a very good investment for us. In terms of recycling capital, we're still materially aligned with our investors, and we just look at sort of actively managing our balance sheet, and we took the opportunity to sell some down. I think you would see this, you know, as an ongoing feature.
I talked about it when we actually went through the delisting process with Redcape, that it would be something that we would consider. It doesn't reflect our conviction in the underlying assets. It actually more reflects an active management of our balance sheet.
Okay. Got it. Thanks. Just with regards to Allendale, have you fully raised the 70 odd AUD million there that you're looking to raise already? Is that completed? Secondly, how are you approaching sort of real estate asset acquisitions this year in the context of how you think it will be in terms of capital raising environment?
No, I think that's a good question. I think about our peers in terms of how we go about raising capital, and I know that the domestic market's been quite difficult over the last 12 months. Allendale was done and done well, within the timeframes of marketing that asset. It was completely sold to third parties on the closing of the fund. You know, I think about the real estate market. Allendale was really an opportunistic buy for us. We thought we're buying it below replacement cost. The yield was good, and we actually like the Perth office market. I think you're gonna see a fair bit of a fair few real estate owners seeking liquidity through the year. Now, you won't wanna buy every asset, but it's gonna present opportunities.
I think through our lens, we've got quite unique distribution channels to marry the capital up with these assets that few others have, to be honest. I'm quite buoyant about the real estate market. I think pricing's sort of coming our way, we'll look to take advantage of opportunities as they come.
Great. Thanks for taking the questions.
No problem.
Our final question comes from the line of Victor Lee from Blue Ocean Equities. Please proceed.
Good morning, guys. How are you?
Morning, V.
Morning. Just in terms of the fund flows chart on slide 19.
Can you just talk to the domestic high net wealth net flow piece? It's sort of. I can see the gross numbers up and there's obviously the net sort of flattish. How are you doing on expanding the footprint and getting ratings and whatnot? Clearly that's gonna be an important growth driver for your net flows going in the next three to five years type, I suppose.
Yeah. Well, I think, you know, you think about the growth numbers in flows in domestic market, you know, being up sort of 26% year-on-year was a great outcome, and a lot of that-
Yeah.
-flow went into credit investments.
Yeah.
We're broadening our platform exposure for those, for those funds, and we're also getting, you know, into more model portfolio. The momentum's really with that business. I guess those funds are a little bit more liquid in terms of having monthly redemption application and redemptions. We do see a bit more rotation in those funds, but they're positive in terms of their growth there and their inflows. The other call-out would be, you know, obviously Redcape's gone through a period post de-listing, where we've had some, I guess, historic redemptions being made because it's been a fund for six or seven years that's had, you know, that it was sort of seasoned right.
We expect that domestic flow to, you know, to increase on a growth basis and probably the next flow, you know, it should be positive as well. You're going to see a natural, you know, a natural churn in the underlying investor base.
Great.
The only other. Sorry. The only other thing I forgot to mention there, Vic, was that through the period, we also sold two real estate assets in being Hollywood Plaza and Dandenong. We actually returned capital to investors, which can get caught up in that net number. When you exclude those numbers, like the capital being realized, and it's called out on that point where there was AUD 66 million of capital returned, obviously the net numbers improve again. The net captures both redemptions and realization.
Great. My second question would be on probably more Graham Lello question. Just on the cash flow statement. Is the way going forward with the statutory cash flow statement to remove that? Net cash from operating activities is AUD -283, but obviously you've got that amount advanced to third parties. If I remove that line, is that the best way to look at it, to operating cash flow?
Vic, it gets close. The statutory cash flow actually incorporates a number of different entities. Certainly removing that line or netting off the funds that are coming in from, or new funding that's coming in, which is a similar number, about AUD 380, gets you close.
Okay, perfect. If I do that, I suppose, is that mean 44? Year-over-year, is it actually, am I looking at this right? Has that gone down? 44 minus 119. I might take that off-offline. I'll take that offline.
We can take that offline, Vic. I'm happy to talk you through it.
Yeah.
'Cause the statutory result does have complications when you bring.
Yeah.
in the PIP strategy that we have to consolidate and the securitization trust. Can talk you through it offline.
Perfect.
When I think about it through a simple lens, not consolidated statutory lens, we're, you know, we're a very cash generative business, and we have high cash conversion on our underlying earnings. That's how we think about it. That supports the increase in the dividend, et cetera. It's something we do focus on a lot. Unfortunately, the consolidated cash flows or consolidated statutory accounts do create complexities in reporting.
No problems. I'll take that offline. Thank you for answering my .
Thanks, Vic.
There is one final question, sir, from the line of Tim Piper from UBS. Please proceed.
Hey, sorry. Thought I might try and jump in with one more, if that's okay.
Sure.
I'm just curious MA Money. Sorry.
You can have a
On the MA Money strategy, you talked about the investment there, and obviously you've invested quite a lot in platform growth over the past 12 months, and you're targeting sort of profitability or breakeven by the first quarter of 2024, I think you mentioned. Maybe can you just talk us through what investment is sort of left in that platform there across this calendar year? Secondly, in terms of reaching that sort of breakeven level, I mean, is there sort of a growth in loan book that we can think about to reach that breakeven level that's required?
Yeah. It's Chris Wyke here. I'll break that question for two parts. Firstly, what investment is left for the year? The major commitment investment in team building is complete. It occurred really from May through to the end of December. The rebrand and the new products were put on the various networks and platforms to be available to consumers. It really in earnest launched and started picking up loan volume shortly after Australia Day this year. Really coming end of January, beginning end of February. There will be the annualization of those costs. When you go to market with product, you have to make sure that you give your customers and the broker network a good experience.
That means you need to build the platform capable of processing volume which you anticipate to have. That volume takes time to ramp up, but it means you need the people, systems, and infrastructure to cope with that volume day one. Therefore, the costs are incurred and continue to drag on the performance of the business until the loan book grows and the revenue therefore overtakes them. We've put in place everything that needs to be in place. If the growth goes really strong, we might need to put on additional BDMs as a marginal expansion, but the core components of the platform are all there.
In terms of what it is we need to believe and, for the book to be of a size and ability for breaking even, it will depend on margins and portfolio mix, but a book size of AUD 1 billion-AUD 1.25 billion is probably around the breakeven level. You are subject to where capital markets and term markets are pricing. They widened coming into the end of the last year, and there's been good demand and a bit of tightening at the beginning of this year. By and large, that's the metric that we would see for the run rate breakeven.
Okay, great. Thanks for that.
That does conclude today's questions. I would now like to turn the call over to Julian Biggins for closing remarks.
Okay. Thank you, Operator, and thank you for attending the conference call. We look forward to catching up with you in the future. Thank you and have a good day.
Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.