Our latest pre-tax annualised investment rate for the September quarter is 6.12%.

We have previously signalled, we were anticipating a reduction resulting ultimately from our commitment to balancing risk and return as opposed to chasing higher returns. This is still a solid result and represents a meaningful premium over one-year bank term deposit rates, currently around 230 basis points higher.

As a result of sticking to our core lending fundamentals we are holding higher cash balances meaning we are well positioned to take advantage of opportunities as they arise stemming from a gradually improving economic outlook.

Looking ahead

Growing our lending business is a key focus for us and we have a number of workstreams underway including:

• Increasing rollovers of existing loans which meet our criteria: This helps strengthen customer relationships and ultimately supports stable returns for investors.
• Lengthening loan terms: With an average loan term of around 18 months, we see opportunities to extend this timeframe when the conditions are right.
• Growing smaller loans: We see strong potential in expanding our market share of loans under $2 million, adding increased balance and resilience to the portfolio.

Together, these actions should bring liquidity into balance, help further diversify our lending portfolio, and position us to continue delivering a strong premium over term deposit rates.

All things considered we anticipate that we are getting close to the bottom of our return cycle, which positions us well for a steadier performance and greater consistency through the months ahead and into 2026.

Maintaining our conservative stance

With nearly three decades of experience navigating market cycles, our philosophy has remained unchanged: we prioritise a disciplined balance of risk and return in favour of our investors.

This measured approach is central to our investor-first focus and reflects the low risk tolerance that defines FMT. These principles have guided us through past cycles and will continue to underpin our strategy in the years ahead.

Signs of spring: Confidence & opportunities ahead

The lending environment is showing encouraging signs of improvement. Recent easing in interest rates is stimulating activity and confidence, creating a more supportive setting for growth. Our lending team are identifying strong opportunities in the market, particularly across the main cities, where demand remains resilient.

Investor meetings

Our 2025 investor meetings are well underway and continue to be a highlight for myself and the team. Investors often tell us how much they value the chance to connect in person, not only to hear directly from us, but also to listen to our guest speakers and engage with the wider FMT team.

We greatly enjoy these opportunities to meet with you, hear your perspectives, and have conversations that go beyond the numbers. More events are scheduled for October and November, and the team and I look forward to seeing many of you there.

2025 Youth sponsorship grants

We are proud to support talented young New Zealanders striving for excellence in sport and the arts. This year, following feedback from last year’s investor meetings, we extended the sponsorship programme to make it even more impactful. You
can read more about this year’s recipients in this newsletter.

Investor portal launch

Late October we will begin the staged rollout of our new investor portal, designed to make it easier to access information and manage your investment online. For those who prefer not to use the portal, your experience with us will remain unchanged, and our personal approach will continue as always.

Once again, thank you for your trust and support.

Paul Bendall

CEO