Annualised pre-tax return
For the quarter ending 31 March 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.
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
The pre-tax distribution paid for the quarter ending 31 March 2022 was 5.18% 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.
Annualised returns - Year End 31 March
From $500 starters to high net-worth clients, our investors have benefitted from consistent returns from day one.
We’re here to help New Zealand and New Zealanders generate wealth.
We pride ourselves on great personal service. Our friendly team is always available to help.
Risk is one of the highest concerns for investors. Our funds are backed by first mortgages with relatively conservative loan to valuation ratios.
Our conversative approach to lending means we’ve been able to provide investors with consistent returns for over 25 years.
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.
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).
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.
All FMT activities are actively managed by our professional team who know and understand the New Zealand property market and the opportunities on offer.
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.
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.
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.
Phone 0800 321 11 or email [email protected] to talk to our investment team. We can either set up a meeting in our office, or an online meeting.
Download our Product Disclosure Statements and complete an Application forms, send it to us and we will be in contact. Click here to Download our Investor Pack.
Request a call-back and our team will give you a call back to talk about how we can help you.
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.
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.
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).
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.
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.
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.
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.
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 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).
First Mortgage Trust are no longer issuing Tax Certificates.
Your four quarterly income statements sent by First Mortgage Trust also detail the tax deducted.
Please note, this is just a guide and we recommend you seek professional tax advice.
Disclaimer – The results above are subject to the following assumptions:
- The investor’s main source of non-investment income is New Zealand superannuation on a non-shared living arrangement. That is taxable income between $14,000 and $48,000.
- FMT is your main investment and that you wish to have a single investment in FMT.
- This is a simple guide only. There are alternative strategies which may provide better outcomes. These are on case-by-case basis.
Should you want to fully canvas your options, we strongly recommend you seek independent advice from your Tax Adviser.