Investing with First Mortgage Trust

Since 1996 we’ve been helping New Zealanders protect their nest egg and grow their wealth. We focus on what we know is important to you; consistent returns and steady income-focused funds that are accessible when they’re needed.
Contact us about investing now
5 .34 %p.a.

Group Investment Fund & PIE Trust*

Annualised pre-tax return

For the quarter ending 30 June 2022. Past performance is not a reliable indicator of future returns. Returns are not guaranteed.

*If you have a 30% or higher income tax rate, the First Mortgage PIE Trust could give you a higher after tax return than the First Mortgage Trust Group Investment Fund.

Our Funds

Over the years we have delivered our investors regular and consistent returns.

You can invest your funds in the First Mortgage Trust Group Investment Fund or First Mortgage PIE Trust.  Your decision on which fund to choose will depend on your own particular tax circumstances, therefore professional financial or tax advice should be taken before making an investment.

Contact us

View historic investment return rates

Historic annualised distributions – Paid quarterly

The pre-tax distribution paid for the quarter ending 30 June 2022 was 5.34% on an annualised basis.

This table shows the historical annualised pre-tax quarterly distribution rates and the annualised pre-tax returns we have achieved for our investors over the past 10 years.

Past returns are not a reliable indicator of future performance. Returns are not guaranteed.

Year

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

Mar

5.18%

4.00%

4.90%

5.20%

5.30%

5.25%

5.15%

5.72%

5.12%

4.50%

4.35%

Jun

5.34%

4.74%

5.00%

5.05%

5.45%

5.25%

5.15%

5.55%

5.32%

4.71%

4.35%

Sep

4.91%

4.46%

4.85%

5.30%

5.15%

5.01%

5.12%

5.50%

4.76%

4.35%

Dec

5.19%

3.88%

4.80%

5.30%

5.15%

5.20%

5.01%

5.70%

4.85%

4.30%

Annualised returns - Year End 31 March

4.80%

4.65%

5.07%

5.42%

5.30%

5.24%

5.46%

5.52%

4.79%

4.42%

In addition to our investment funds, we offer our clients two specialised investment options

Managing your cash in retirement

Retire with peace of mind knowing that your money is available and working for you.

Funeral funds

We understand that you want your funeral wishes to be honoured, without creating any unnecessary financial burden on your loved ones.

Why invest with us?

Mortgage-backed investment

Risk is one of the highest concerns for investors. Our funds are backed by first mortgages with relatively conservative loan to valuation ratios.

Proven consistent returns

Our conversative approach to lending means we’ve been able to provide investors with consistent returns for over 25 years.

Regular income

Every quarter, we distribute returns into your bank account, or you can choose to have them reinvested back into the fund. You tell us your preference, and we do the rest.

Flexibility

You can start with a minimum of $500 and after that you can make further contributions at any time that suits you (minimum $100 additional investment).

Accessibility

Your investment is not made for any fixed term (although we do encourage you to invest for medium to long term growth outcomes). If you’re retired and needing extra top up income on a regular basis, then our 'Managing Your Cash in Retirement' facility was designed with you in mind.

A team of specialists

All FMT activities are actively managed by our professional team who know and understand the New Zealand property market and the opportunities on offer.

Join over 5,900 New Zealanders, including many who’ve been with us since the start!

Read our latest newsletter

Each quarter we produce a newsletter with an update from our CEO, Paul Bendall, where he shares our latest quarterly return rate and provides a company update. We also feature insights from renowned economist Tony Alexander and invite other experts to comment on current topics of interest. Regular features include a distribution map profiling our investments by location and type, plus we profile new team members at FMT.

Read our latest newsletter

Benefits of mortgage-backed investments

We know risk is a major consideration when deciding where to invest. With FMT our investments are backed by first mortgages over land and buildings. Property-based securities traditionally provide some of the least volatile investments. In addition, the funds always hold cash investments (liquidity) with New Zealand banks to help ensure cash is available to repay investors when needed.

Spread of risk

By pooling your funds with other investors, your investment is consolidated and spread across cash and the whole mortgage portfolio which gives more diversified exposure to the property market than investing directly in a single property loan. Loans are secured by first mortgages with relatively conservative loan to value ratios.

Risk is also mitigated by diversification of first mortgage investments across various property types and locations throughout New Zealand. This geographical spread helps to level out any local economic factors, and it ensures we have a good cross-section of property types in our portfolio.

Investor protection

Investments in the First Mortgage Trust Group Investment Fund are monitored by New Zealand’s oldest independent trustee company, Trustees Executors Ltd, acting under a Trust Deed.

First Mortgage PIE Trust’s supervisor is Public Trust.

Both First Mortgage Trust Group Investment Fund and the First Mortgage PIE Trust have their financial statements audited by KPMG.

As proof of performance, since inception we have never missed a single distribution to our investors, including during the Global Financial Crisis and more recently through the Covid-19 pandemic. Please note, past performance is not a reliable indicator of future performance.

Reserve fund

Although our conservative lending policies are consistently and rigorously maintained, we have a reserve fund to help meet possible losses on individual loans.

A very small part of the FMT Group Investment Fund’s income is set aside each year and accumulated within the reserve fund. This fund provides additional peace of mind for investors and generally does not have a material effect on income distributions.

However, if there are a number of loan defaults then the reserve fund may not be enough of a buffer and this could affect distributions.

Start investing with First Mortgage Trust

1. If you want to talk to us

Phone 0800 321 113 or email [email protected] to talk to our investment team. We can either set up a meeting in our office, or an online meeting.

2. Download our Investor Pack

Download our Product Disclosure Statements and complete an Application form, send it to us and we will be in contact. Click here to Download our Investor Pack.

3. Request a call-back

Request a call-back and our team will give you a call back to talk about how we can help you.

Investing FAQs

What is a Mortgage Trust?

Mortgage trusts are one of the oldest examples of a collective investment scheme. Under this model, investor funds are pooled together in a trust, with delegated authority given to a management company (in our case First Mortgage Managers Limited) who oversee the trust and select suitable lending opportunities in accordance with the ruling trust deed.

What are the risks?

All investments involve risk.

With any investment there is a chance the return may be different from what is expected. The key to our success has been the first-mortgage investment security we require when lending (via first mortgages on New Zealand land and buildings with relatively conservative loan to valuation ratios). This is further supported by the lending process we have elected to have in place before any investor funds can be placed with borrowers.

What this means is; our internal team assess and recommend loans for approval; then our independent credit team make the decision on whether to proceed with the loan.

Our appointed supervisors add another layer of oversight, providing our investors with confidence that their money is in good hands and only being invested in accordance with the Trust Deed.

For more information on risk, please refer to the Product Disclosure Statements.

What are the fees for the funds?

The Fund charges are estimated at 1.7% of the Fund value including gst. This is subject to change.

We also reserve the right to charge a withdrawal fee of 2% of the amount withdrawn during the first year of investment in units and 1% of the amount withdrawn during the second year of investment. There is no withdrawal fee for investors who withdraw after their second year of investment.

There are no upfront fees when you invest with First Mortgage Trust. At the end of each quarter, the rate of return we declare is net of all fund charges and expenses, so what you see on our statements is what you’ll get delivered directly into your account (other than amounts deducted to pay tax).

What are the value of units?

In return for your investment, you receive units in the fund you choose – either the First Mortgage Trust Group Investment Fund or the First Mortgage PIE Trust.

The value of the units in the First Mortgage Trust Group Investment Fund is based on the market value of the Fund at the relevant time. The value of new units is based on the value of the Fund on the business day before your application for units is received. The value of the Fund is, in summary, the value of deposits with banks and the market value of the loans, less liabilities including undistributed income and the reserve fund value.

We aim to maintain the unit price at $1.00 on an on-going basis. However, the unit price may go up or down because of changes in market conditions and other factors.

The First Mortgage PIE Trust invests in the First Mortgage Trust Group Investment Fund. The value of its units reflect the value of the units it holds in the First Mortgage Trust Group Investment Fund, plus its cash holdings.

What if I need to get my money out?

Your investment is not locked in for a specific amount of time. We do encourage investors to invest for a minimum of two years. This is because mortgage lending terms are generally 18 months to 2 years, so this timeframe is generally aligned to the Fund’s underlying investments. Also, no withdrawals fees are payable on withdrawals after two years from investment.

You need to be aware that in certain circumstances withdrawals could be suspended or deferred.

How do I make a withdrawal?

To withdraw your funds from a First Mortgage Trust Fund you must complete a Notice of Withdrawal.

Withdrawals are normally actioned twice a week (on Monday and Thursday). We generally action withdrawals within four business days of receiving your completed Notice of Withdrawal.

A Notice of Withdrawal must be for at least 100 units or the whole amount of your investment if less than 500 units.

To view our next withdrawals date – click here

You need to be aware that in certain circumstances withdrawals could be suspended or deferred.

When are distributions made?

Distributions (being the income earned on the Fund’s investments after the payment of tax, fees, expenses and reserve fund contributions) are calculated quarterly at the end of March, June, September and December in each year. Our usual practice is to pay the distributions to investors on the last business day of each of those months. This may take longer in limited circumstances.

You can elect to re-invest your distributions in the Fund. If your distriubtion in a quarter is less than $25 we can choose to re-invest your distribution in the Fund.

How do I make a deposit?

Investments in the Fund must be at least $500 on joining. Subsequent investment in the Fund must be at least $100 by a one-lump sum payment at any time, or at least $100 monthly by automatic payment.

When depositing new funds and additional funds you will require our bank account details and your investment number. All you need to do is go into your internet banking and go to Payees and type in First Mortgage Trust. This will populate our account details for both the PIE Trust and the Group Investment Fund and if your investment number starts with a “D” this is the Group Investment Fund, and if your investment number begins with a “P” this is the PIE Trust. Then you choose the appropriate account and use your investment number as the reference number.

We may ask you to provide information to support your deposit – this helps us comply with our legislative requirements under the Anti-Money Laundering & Countering Financing of Terrorism Act 2009 (AML/CFT Act).

How to access your Withholding Tax Certificate for your First Mortgage Trust investment?

First Mortgage Trust are no longer issuing Tax Certificates.

Inland Revenue now has your tax information available through your personal myIR account. Information on how to register for Inland Revenue’s myIR is available through their website – ird.govt.nz

Your four quarterly income statements sent by First Mortgage Trust also detail the tax deducted.

We’re here to help

Request a call-back from our team

A member of our Investment Team can give you a call to discuss any questions you might have about investing with First Mortgage Trust.

Request a call-back
Need more information?

Request an FMT Investor Pack

Want to start investing or learn more, request a copy of our Investor Pack. This is available as a digital or physical brochure.

Download Pack Request Physical Pack

Download FMT Lending Pack

    Download FMT Investor Pack

      Request Physical FMT Investor Pack

        Request a Call-back

          Request a Call-back

            Youth Sponsorship Application

              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?
              Other investor types should seek professional tax advice.
              Back

              Individual

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


              Can you reasonably estimate your own annual income?


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


              YOUR RESULTS

              Contact Us

              Back

              Trust

              Do you distribute all annual income to beneficiaries?


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

              YOUR RESULTS

              Contact Us

              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.