INVEST
| INVESTMENT SECURITY
First mortgage investments You have the security of investing
in first mortgages secured over land and buildings. We do not lend on consumer
goods such as appliances, used cars, etc.
Land based securities traditionally provide some of the most secure forms
of investment security. By investing through First Mortgage Trust you have
the comfort of knowing that borrowers from the Trust have mortgaged their
land to the Trust to provide security for your investment.
Spread of risk By pooling your funds with other investors,
your investment is spread across the whole mortgage portfolio. Risk is
also spread by diversification of first mortgage investments across accepted
property types and locations, e.g: commercial, office, industrial, retail,
residential and farming properties throughout New Zealand. This means that
if there is a poor return from any one mortgage, the impact is spread across
the whole mortgage portfolio and is less likely to have a significant effect
on the overall income you earn from your investment.
Reserve fund Although conservative lending policies will
be maintained, we have a reserve fund to help meet possible losses on individual
loans. A very small part of the Trust's income is set aside each year and
accumulated within the reserve fund. The accumulation of the reserve fund
will not usually have a material effect on income distributions. A larger
amount may be contributed to the reserve fund if the manager considers
it prudent. This may have a material effect on income distribution.
Investor protection Your interests in First Mortgage Trust
are monitored by New Zealand's oldest independent Trustee Company, Trustees
Executors Ltd, acting under a Trust Deed, and by independent auditors,
KPMG.
First Mortgage PIE Trust's trustee is New Zealand Permanent Trustees Limited
which is owned by Public Trust.