Am I A Wholesale Investor? - First Mortgage Trust

Investing with FMT

Am I a Wholesale or Retail Investor?

Our recently launched First Mortage Trust (FMT) Wholesale Fund is available to wholesale investors only. We have provided information on who qualifies as a wholesale investor below.

If you do not qualify as a wholesale investor, you are considered a retail investor. The FMT Group Investment Fund and First Mortgage PIE Trust are both retail investment offerings, available to retail investors.

To Qualify as a Wholesale Investor for the FMT Wholesale Fund

You must meet the criteria set out in clause 3(2) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act 2013.

Broadly speaking wholesale investors have fewer protections because they are presumed to have the capability to assess the risks and merits of an investment without needing as much regulatory oversight.

Retail investors have more protections; financial products offered to them must meet stricter disclosure and conduct requirements which are designed to help investors make an informed decision.

Advantages For

Retail Investors

Investing in the FMT GIF or PIE Trust:

$500 minimum investment
Flexibility, no fixed term
Consistent return

Advantages For

Wholesale Investors

Investing in the FMT Wholesale Fund:

$500,000 minimum investment
Two-year minimum term
Bonus return, depending on amount invested

Wholesale Investors

Who Qualifies?

There are a number of ways that you can qualify as a wholesale investor, for example:

You have owned or controlled net assets of $5 million in the past two financial years.
You are an investment business e.g. licensed financial advice providers or businesses who invest on behalf of others.
You are a government organisation.
You have acquired $1 million of the following specified financial products in the past 2 years:
a) Managed Funds
b) Equities
c) Debt Securities
Note: Term deposits, cash PIEs, commercial or residential property investments and KiwiSaver funds do not qualify you.

This is not a complete summary of wholesale investor requirements. Further details on the requirements to fall within each of these wholesale investor categories, and other wholesale investor categories, are set out in the Safe Harbour Certificate available from us. If you believe you qualify under one of these categories, you’ll need to complete a Safe Harbour Certificate alongside your application form.

Wholesale Investors

Who Qualifies?

You may also qualify if you have experience acquiring or disposing of financial products that enables you to adequately assess the offer.

This means you would need to provide an Eligible Investor Certificate as well as a written confirmation from a third-party professional to certify that you understand the consequences of the certification.

This professional could be a financial adviser, a qualified statutory accountant or a lawyer.

If you believe you qualify under this exemption, please consult a professional to ensure you understand the implications of investing in the FMT Wholesale Fund before applying.

Want to Express Your Interest?

Initially we're only inviting existing FMT investors (who qualify as wholesale investors) to apply for the FMT Wholesale Fund.

If you'd like to express your interest in applying, please do so by clicking the button below and we'll contact you with more information. An expression of interest does not commit you to invest.

Express Your Interest

No PDS is required to be made available for the FMT Wholesale Fund, however an Investment Memorandum is available on expression of interest.

Disclaimer: This information is of a general nature and is not financial advice. We strongly recommend that you talk to your financial adviser to determine if investing in the FMT Wholesale Fund is right for you. We do not provide financial advice.

The FMT Wholesale Fund is now open.

Please fill out the form below and one of our investment team members will reach out soon to discuss this opportunity further.

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Which type of fund is right for me?

Complete this questionnaire to see what type of fund might be the most tax effective for your circumstances. Please note, this is just a guide and we recommend you seek professional tax advice.

Are you investing as an individual or trust?

An individual A trust

Other investor types should seek professional tax advice.

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Individual

Is your tax return completed by a tax adviser or accountant?

Yes No

Can you reasonably estimate your own annual income?

Yes No

What is your total income from all sources (including PIE income)?

< 48k 48-70k 70-119k > 119k

YOUR RESULTS

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Trust

Do you distribute all annual income to beneficiaries?

Yes Some income is distributed No distribution

Do all Trusts beneficiaries earn more than $48K from all sources (including PIE income)?

Yes No

YOUR RESULTS

Disclaimer – This tool is intended to provide general guidance only. This tool does not take into account your particular financial situation, objectives or goals.

There are alternative strategies which may provide better outcomes, we recommend you seek independent advice before making any investment decision. If you have completed this guide and wish to discuss this, we recommend you seek professional tax advice.