Our annualised pre-tax investment return for the March 2026 quarter is 5.32%. This reflects softer economic conditions lingering longer than expected, which meant that lending volumes remained subdued. 

More recently, however, we have seen a noticeable increase in quality lending opportunities. We have seen a 60% increase in our lending pipeline quarter on quarter, and our loan numbers have also started increasing, which is encouraging. We are, however, very mindful of the current global environment and impact this is having both internationally and in New Zealand.

Periods like this can create uncertainty, which can be unsettling for investors. They also highlight the differences between asset classes. Share markets tend to react quickly to geopolitical events, often resulting in volatility. By contrast, our property-backed lending model is generally less exposed to these movements. While other investments may experience sharper swings, our returns tend to remain more consistent, helping provide peace of mind.

Control, discipline, and track record

While we continue to monitor global developments closely, our focus remains on what we can control, the fundamentals that have guided FMT through many market cycles: disciplined lending, careful risk management, and maintaining strong liquidity. Since we opened our doors in 1996, we have operated through numerous global and local disruptions. This experience reinforces the importance of staying disciplined and focused on fundamentals. We continue to closely monitor our loan book, looking for early signs of stress and ensuring loans are priced appropriately for the current environment. We are maintaining strong cash reserves, and our loan book continues to perform at a high level, leaving us well positioned to navigate current conditions.

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.

Liquidity levels

As noted earlier, we have been holding higher levels of cash than usual. While this may reduce returns in the short term, it is a deliberate and conservative decision that positions us well to support new lending and protect investor capital. With improved lending activity, we expect liquidity levels to gradually reduce as funds are committed to new loans.

30 years of FMT

This year, we celebrate 30 years of FMT. Experience matters in uncertain environments. Having operated through multiple market cycles, we understand the importance of discipline, a focus on fundamentals, and maintaining a long-term perspective. We are proud to be a New Zealand business built on long-term relationships and a genuine people-first approach. This milestone reflects the trust our investors have placed in us over many years. Markets change, but our approach does not. Protecting investor capital while delivering consistent long-term returns remains at the centre of everything we do. While we are disappointed not to have delivered a higher return this quarter, we are encouraged by the strengthening lending pipeline and improving market activity. Although global conditions remain uncertain, our priorities are clear: disciplined lending, careful risk management, protecting investor capital and delivering consistent returns. Thank you for your continued trust and support.

Paul Bendall, CEO