Our offices are closed for the holidays December 24th - January 6th.

Investment distribution payments for the December quarter will be made on the 31st December 2024.

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First Mortgage Trust

Why invest with us?

We’re a NZ owned & operated fund manager, specialising in property lending.
We’ve been helping kiwis protect and grow their nest eggs since 1996 and today have over 6,500 investors, nationwide.
Many of our investors compare what we offer to a bank term deposit, even though they are quite different products.
We’ve put together this page to help explain the differences between the two. If you need more help to understand the differences, we suggest you speak to a financial adviser.

Our Returns are variable

One of the differences you'll notice is that our return rates are not fixed like a term deposit. They are calculated at the end of each quarter and depend on a number of factors - like loan interest rates and fund liquidity.

By calculating returns quarterly, we aim to pass on the full benefits of our fund’s performance (after fees & expenses) directly to our investors.

FMT Fund vs Bank Term Deposit Comparison

The following table outlines some of the key differences between
an investment with FMT, and a bank term deposit:

The following cards outline some of the key differences between an investment with FMT, and a bank term deposit:

FMT Fund Term Deposit
Institution Fund manager specialising in property lending Registered Bank
Returns Variable, calculated quarterly Fixed interest rate
Accessibility Funds normally accessible Normally, locked in for the fixed term
Distribution Frequency Quarterly returns, these can be reinvested or paid out Interest typically paid at maturity, or at periodic fixed intervals

Institution

FMT: Fund manager specialising in property lending

Bank: Registered Bank

Returns

FMT: Variable, calculated quarterly

Bank: Fixed interest rate

Accessibility

FMT: Funds normally accessible

Bank: Locked in for the fixed term

Distribution Frequency

FMT: Consistent quarterly returns, these can be reinvested or paid out

Bank: Interest typically paid at maturity, or at periodic fixed intervals

What are the

Key benefits of an investment with FMT

We’ve been trusted in New Zealand since 1996, offering a managed investment scheme where investor funds are pooled into a trust and invested primarily in first mortgages on New Zealand properties.

  • Actively managed funds – we have a professional team with extensive knowledge of the property industry
  • Not directly tied to the OCR – this is one of the reasons our most recent quarterly return is still above 7%, while 12-month term deposit rates have fallen below 5%.
  • Flexible, accessible investments – we normally allow investors to withdraw funds as needed, although we do reserve the right to charge withdrawal fees in the first two years and in some cases, withdrawals may be suspended or deferred. Withdrawal requests are usually processed within 4 working days.

 

What are the

Key benefits of a bank term deposit

In simple terms, bank term deposits are a type of investment where someone invests a set amount of money with a bank for a nominated and agreed fixed term. Bank deposits are some of the most popular investments available to New Zealanders, and there are a number of benefits, including:

  • They receive a known rate of interest (less tax)
  • There is a perceived certainty of return and low risk (lower than FMT funds, although they are also relatively low risk).

While bank term deposits can be attractive to some investors, there are a couple of factors to be aware of:

  • Generally, they provide a lower return than other investments
  • In an inflationary environment, a lower interest rate (compared to inflation), may mean that your purchasing power drops over time.

 

Our Goal

While it cannot be assured, our objective is to give investors an annualised pre-tax quarterly return (after fees and expenses) of at least 1% per annum higher than the average of the 12-month term deposit rates offered by New Zealand’s four main trading banks and competitive with comparable investments.

We've never lost a cent of investor capital, and while past performance is not a guarantee of future performance, this is something we're proud of and committed to maintaining.

FMT Returns vs Bank Term Deposits

This graph shows the historical annualised pre-tax (after fees & expenses) quarterly distribution rates for the First Mortgage Trust Group Investment Fund versus the average 12-month bank term deposit rate since 2017.

Data as at 12 December 2024. Term Deposit data from the Reserve Bank of New Zealand (RBNZ). Past performance is not a reliable indicator of future performance. Returns are subject to change and are not guaranteed.

Want to learn more?

Fund Information

You can learn more about investing with FMT, including links to information on each fund on our investing overview page.

Learn More
Want to learn more?

Investor Documents

For a more detailed information you can download an investment brochure, or request an investment pack, which contains the Product Disclosure Statements for our funds and more information.

Investor Brochure Investment Pack

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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

              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.