As an investor your funds are pooled with other investors in the Midlands Income Fund. The Fund provides investors with quarterly cash income which can be added to your investment OR assist in topping up your income. The Fund targets (but doesn’t assure) a pre-tax return of 2.5% to 3.0% above New Zealand registered bank 1-year term deposit rates (for the quarter ended 31 March 2022, our annualised pre-tax return was 4.80% pa(1)).
Our experienced team of professionals ensure that your investment is carefully, responsibly and expertly managed. This diligence is reflected in our consistent returns and low default rate. Many of our directors, shareholders and staff are invested alongside you in our funds.
The Fund invests in a quality diversified loan portfolio secured by first ranking mortgages over residential, commercial, and rural land and buildings spread throughout New Zealand.
A balanced portfolio is maintained across sectors, mortgage types, Loan to Value Ratios (LVRs), servicing capability, exit strategies, interest rates, maturity dates and locations. The Investment Committee adjusts the strategy depending on our market view, sector preferences and risk-reward dynamics. As at 31 March 2022 the portfolio had a weighted average LVR of 47% with no sector’s weighted average LVR above 50%. Most of our loans are on a floating rate basis.
Our investment strategy is deliberately conservative to enable us to weather market volatility and focus on capital protection whilst providing consistent and reliable rates of return.
The Midlands Income Fund has a Risk Indicator of 1 (low)(2). Your money is not invested for a fixed term (unless invested in our Wholesale Fund) and whilst we suggest that you should hold the investment for a minimum of 2-years, unlike bank term investments which cannot always be broken with cost, we normally only require five days’ notice of intent to withdraw.
Established in 2004, Midlands Funds Management Limited is licensed by the Financial Markets Authority as a manager of registered schemes that invest in loans secured by first mortgages and overseen by an independent supervisor, Trustees Executors Limited.
Borrowers come to Midlands when they don’t quite fit bank lending criteria. This can be for a variety of reasons, including being a new business owner or self-employed with no PAYE income, the borrower’s age, or having assets but no cash flow over a short period of time. Borrowers are sometimes also looking for bridging finance or to release equity value in their current property for investment purposes. Typically repayment is by way of selling an asset or refinancing to main bank.
Midlands Funds Management Limited, the issuer of the Midlands Income Fund, is not a registered bank. The product disclosure statement for the Midlands Income Fund is available from our website, midlandsfundsmanagement.co.nz.
Elliott’s has over 30 years’ experience in financial services in the United Kingdom, Jersey and New Zealand. His primary responsibilities are to assist new and existing investors.
Elliott holds the NZ Certificate in Financial Services (Financial Advice) (Level 5).
Sandy is responsible for new and existing investors assisting them with their investment needs. Her background is in investment, commercial analyst and administration and she has over 28 years banking experience with Westpac.
She is passionate about helping clients achieve their financial goals.