Our annualised pre-tax investment return for the December 2025 quarter is 5.71%. This reflects the wider market trends, with returns easing across the deposit and savings landscape. It also reflects our disciplined approach to lending.

This quarter was influenced by higher-than-usual liquidity, driven by strong inflows, fewer new lending opportunities that met our standards, and higher than forecast loan repayments. With thirty years of experience across multiple cycles, we know it’s better to hold higher cash reserves than lend simply to stay fully invested. We only lend where the risk and return are genuinely in the best interests of our investors.

Even with this careful approach, we continue to deliver a strong premium over one-year term deposit rates, reinforcing our focus on protecting investor capital while providing steady returns.

Our focus on investor outcomes

We benchmark ourselves against one-year term deposits, and throughout the year we delivered a meaningful and consistent premium. For the December quarter, this premium was around 220 basis points, and for the full year it averaged about 230 basis points. This reflects the strength of our lending book and our conservative approach, which prioritises quality over volume and long-term resilience over short-term gains.

A look back at 2025

As we reflect on 2025, it has been a period of uncertainty both in New Zealand and overseas. Wars, tariffs and other macro events have influenced global sentiment and market behaviour. While some asset classes experienced volatility, we continued to provide relatively stable returns while maintaining a disciplined lending position. We remained selective, conservative and deliberate in our decisions, ensuring that every loan we take on supports the diversity and strength of the loan book. This approach is central to the trust our investors place in us and underpins our ability to deliver reliable results through changing conditions.

Connecting with investors nationwide

A highlight for the year was our 2025 investor meetings. Through 10 events across the country, we connected with more than 1,200 investors. These conversations reinforced what matters most to you: confidence in protecting and growing your nest egg, confidence in FMT, and confidence in our long-standing commitment to putting investors first. These meetings remain invaluable in shaping our focus and ensuring we stay aligned with your expectations.

Milestones that reflect your trust

This year also marked several milestones for FMT. Passing the $2 billion funds under management milestone reflects not only growth but also the support from our investors and the strength of our long-term strategy. We also launched our investor portal, designed to make it easier to access information and manage your investment online.

People are at the heart of FMT

As we say, people really are at the heart of FMT. I am incredibly proud of the team for the diligence, care and discipline they bring to supporting both investors and borrowers. The whole team has worked hard this year, and they remain committed to an investor-first approach. We hear often that our personal service makes a difference, and we are committed to ensuring it remains a defining part of who we are.

Thirty years of confidence and consistency

2026 marks thirty years of FMT, a milestone that reflects both our longevity and the loyalty of our investors. Some have been with us since the beginning, and today we are proud to see multiple generations from the same families choosing to invest with us. Although the business has grown and markets have changed, the fundamentals that matter most to our investors have stayed the same: a conservative approach, disciplined management, and a genuine commitment to protecting their investment. These principles continue to guide us and remain at the heart of our strategy.

Looking ahead

As we look to the year ahead, interest rates have eased and confidence is gradually returning to the market. As a result, our lending pipeline is beginning to build. As always, we will continue to balance risk and return carefully, with the goal of delivering the best outcomes for you.

Thank you for your continued trust. We wish you and your families a safe and enjoyable holiday season.

Paul Bendall, CEO