While this represents a slight decline from the previous quarter, it remains a substantial premium compared to the average one-year term deposit rate of the main banks, which was approximately 4.32% as of late March and continues to trend downward.
We are pleased with the stability in our returns in what has been a rapidly declining interest rate environment. We have maintained our ability to generate strong lending opportunities, ensuring we balance risk and return. Additionally, we continue to maintain a diversified portfolio across key regions and asset classes, reinforcing the strength and resilience of our fund.
The lending market is becoming increasingly competitive, which is likely to put pressure on the interest rates we are able to charge. As always, we will remain steadfast in being selective with our lending opportunities, ensuring we always balance risk and return.
Our strategy continues to focus on preserving capital while delivering consistent, steady returns – a key factor behind our long-term performance and the continued confidence of our investors.
The fund continues to grow strongly, and we are now approaching $2 billion in funds under management. This is a testament to the trust and confidence our investors place in us. We continue to welcome a steady stream of new investors, and to those reading this newsletter for the first time – welcome!
We are also seeing more investors introduce the next generation to our fund, helping their families build long-term wealth with us. Supporting multiple generations of investors is a privilege, and we value the trust that families place in us.
At the end of this quarter, we are distributing $32 million in returns, our highest-ever distribution. It’s a significant milestone that reflects the growth of the fund and the strong returns we have generated.
As highlighted in previous newsletters and at our investor meetings last year, modernising our technology remains a key focus in 2025, with the launch of our new investor portal fast approaching.
We are upgrading our core funds management system with a new technology platform. Our previous system has served us well but is now due for an upgrade. This transition comes at the right time, as cybersecurity remains a top priority. Protecting investor data is paramount, and this upgrade will not only strengthen security but also enhance the overall user experience.
This is a significant step forward, and while our investment team adapts to the new system, there may be a short adjustment period. We appreciate your patience as we get up to speed.
A key benefit of the new system is the introduction of an online investor portal. The portal, designed as an additional self-service option, will enable you to manage your investments online while maintaining the trusted personal service you value. Whether you prefer to call, email, or use the portal, our team remains available to support you in the way that suits you best.
For more details on what these changes mean for you, please refer to the article on page 3. As we get closer to the go-live date, we will provide additional updates via email or post to ensure you are well-informed about any key changes.
2025 has started well and we anticipate continued demand for high-quality lending opportunities. There is no doubt that the macro environment is currently volatile, and we will be keeping a close eye on developments and how they may impact the NZ economy and property market.
As you can see from our technology investment, we are looking ahead with confidence and continue to invest in the active management of FMT – whether through systems or by ensuring we have the best people.
We are well-positioned to capitalise on shifts in market conditions while continuing to uphold our conservative risk management principles.
We appreciate your trust in us and look forward to keeping you informed on our progress throughout the year.
Paul Bendall
CEO
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