Our annualised pre-tax investment return for the June 2026 quarter is 5.22%. 

Despite the impact of offshore volatility on New Zealand, we are seeing clear signs of our lending strategy coming to fruition, with lending volumes growing consistently.

In the last quarterly newsletter, we noted an increase in our lending pipeline, which we have successfully converted into new lending. Encouragingly, the pipeline continues to grow, providing a strong foundation to support returns over time.

Not only have we increased the size of our loan book, but we have also continued to grow the number of loans, highlighting the increased diversification we have been targeting. As always, we remain selective and focused on originating the right loans, with the right borrowers, backed by appropriate security.

As noted in our previous newsletter, we have been monitoring our loan book closely for signs of stress. Nonperforming loans were 0.78% as at 31 May 2026, down from 1.49% at 31 December 2025. This is in line with the main banks and represents a strong result given recent market volatility.

These results reflect the care our team has taken across credit assessment, portfolio management and borrower engagement. This ratio is a strong indicator of a resilient loan book and reflects our focus on protecting investor capital while supporting consistent returns.

For our investors, this means steady progress, careful lending, and the same disciplined approach they have trusted for 30 years.

30 years of FMT

In May, we celebrated 30 years of FMT with a team event in Tauranga. It was an opportunity to bring our wider team together, reflect on how far we have come, acknowledge the legacy we have built, and look ahead to the future. Today, more than 80 people are part of the FMT team. Thirty years ago, FMT started with just two. We are proud of that growth, and equally proud that the values we started with remain just as relevant today: Teamwork, Integrity and Achievement. FMT is a New Zealand business built on relationships, trust and a genuine people-first approach. That same mindset continues to guide how we grow the business and support our investors.

Strengthening lending capability

Over the last six months, we have been focused on strengthening our lending capability and improving internal workflows to make it easier for borrowers to work with us. We know that speed and clear communication are critical when seeking finance. We have introduced new processes and technology that enable us to respond more quickly and serve borrowers more effectively. We have also expanded our lending team to support growth. Encouragingly, we are now seeing results from this work.

Strengthening lending activity

As noted earlier, the increase in lending activity is beginning to flow through to our results. Over recent months, we have seen stronger borrower enquiry and a lending pipeline that continues to build. During the quarter, the pipeline strengthened materially compared with the previous quarter. These are encouraging signs, and we are well positioned to respond to quality opportunities. We will continue to lend carefully and selectively, focusing where the balance of risk and return is appropriate.

Control, discipline and perspective

At the same time, we remain mindful of the global environment and the volatility it can create. While we continue to monitor conditions closely, our focus remains on the fundamentals that matter most: sound lending decisions, active portfolio management and maintaining strong liquidity. These principles have guided FMT through many market cycles and remain central to how we operate today. Markets change, but our approach does not. We remain focused on disciplined lending, careful risk management, protecting investor capital and delivering consistent returns. Thank you for the trust you continue to place in FMT. We value that support and remain focused on delivering for our investors.

Paul Bendall, CEO