How it works
Your midlands investment explained
New Zealanders have always had a love affair with bricks and mortar as a way to build long term wealth. And for good reason. If you invest with Midlands, you are investing into the Midlands Smarter PIE Fund, which provides an alternative way to invest in the New Zealand property sector, without direct property ownership. Simply put, it’s a proven, low risk investment, secured by property and land assets.
here’s how it works
The Midlands Smarter PIE Fund provides a proven, low risk investment, secured by property and land assets.
With as little as $10,000, you can invest into the Midlands Smarter PIE Fund, which provides an alternative way to invest in the New Zealand property sector, without direct property ownership. Instead of owning a property directly, with Midlands your money is pooled with lots of other like-minded investors and invested in multiple residential, rural and commercial property loans, spread right throughout the country. Best of all, our loans are always secured by a first ranking mortgage, which helps protect your hard earned money and your funds are on call, so your money is available when you need it. Now that’s smart.
Investors Funds are deposited into the Midlands Smarter
PIE Fund and pooled with all our other invesors. It’s good to know many Midlands staff, directors and shareholders also invest alongside our investors.
Midlands lends money to approved borrowers who meet our strict loan criteria to purchase property or land assets (all loans are secured by a first ranking Mortgages
over the property).
The net interest income received for the quarter is then distributed back to our Investors. These are your ‘Returns’ and you get to choose what you do with them:
a. Receive cash returns into your bank account every quarter.
b. Reinvest returns back into the fund and watch your money grow.
Borrowers pay interest back into the Midlands Smarter PIE Fund.
Total fees and expenses of 2.1% are deducted.
Borrowers pay interest back into the Midlands Smarter PIE Fund. Total fees and fund expenses of 2.1% are deducted from the interest received.
The interest income received for the quarter is then distributed back to our Investors. These are your ‘Returns’ and you get to choose, what you do with them:
a. Receive regular income payments into your bank account every quarter.
b. Reinvest returns back into the fund and watch your money grow.
When you invest with Midlands, you have choices.
Our investors benefit from consistently, good returns. And they can choose what to do with those returns. So, whether you’re focussing on short or long-term investment goals, you get to choose how to enjoy or grow your returns. Better still, you can switch between the two options at any time.
Option 1
Cash returns
paid every quarter
One of the great things about investing with Midlands is that you can receive regular income from your investment. By choosing to have your returns paid out every quarter, you have ready access to the money you’re making off your money! You can’t argue with that.
Option 2
Reinvest returns & watch your money grow
If you’d rather see your money grow more, for longer, you can choose to reinvest your returns. That way, you take advantage of the compounding interest and watch your money work even harder! Makes great sense, doesn’t it.
What is an Investment Risk Rating?
All managed retail funds in New Zealand must produce a Risk Rating. The Risk Rating is a number ranging from 1 (indicating lower risk)
to 7 (indicating higher higher). All Funds use the same formula, which is prescribed by the Government, to produce the Risk Rating.
This allows investors to easily compare the risk profile of different managed funds.
THE MIDLANDS SMARTER PIE FUND HAS A RISK RATING OF 1
The lowest risk rating possible for a managed retail fund in New Zealand.
The Risk Rating is rated from 1 (low) to 7 (high). The rating reflects how much the value of the Fund’s assets goes up and down (volatility). A higher risk rating generally means higher potential rate of returns over time, but more ups and downs along the way. A risk rating of 1 does not indicate a risk-free investment.
Benefits of Mortgage Backed Investments
A DIVERSIFIED LOAN PORTFOLIO
Diversification simply means ‘not putting all of your eggs in one basket’. Investing with Midlands provides an opportunity to include property and land mortgage assets into your investment mix, without direct property ownership. Our investment strategy is deliberately conservative. Our investing principles focus on diversification across property types and geographical location throughout New Zealand at conservative LVRs to enable us to weather market volatility and focus on capital protection whilst providing consistent and reliable rates of return.
Consistent, Regular Returns
One of the key benefits of investing with Midlands is that the fund does not experience the same volatility as alternative investment options like shares or equities. This is because even though property values may increase and decrease, the value of the mortgage, and therefore the fund’s assets, does not. This means there is very low likelihood that the returns to investors change by a large amount from quarter to quarter. It also means that there’s no “right time” or “wrong time” to invest your money with Midlands.
Any time is good!
Spread of Risk
Because the Midlands Smarter PIE Fund is a pooled investment vehicle, your investment is pooled with hundreds of other like minded investors and spread across multiple property loans (109 as at 30 June 2024). This gives you more diversified exposure to the property market than investing in a single property loan and ultimately means the fund’s returns are more consistent, with less risk of big ups and downs (volatility) or a single property loan significantly impacting the investor returns or principal.
how we look after your money
At Midlands, we take the responsibility of looking after your hard earned dollars very seriously. That’s why we have layers of enhanced security measures and processes in place that are designed to protect your investment and to give you peace of mind.
Here are just a few of the many things we do every day. There are many more here.
The Fund's assets are held separately
The Fund’s assets are held separately by an independent custodian and all movements in and out are authorised by our supervisor. Now that’s smart.
Verified bank accounts for withdrawals. No exceptions.
Withdrawals of funds will only be transferred into a verified bank account in your name. No exceptions.
We're just a phone call away
At Midlands, it’s always nice to know you can pick up the phone and talk to a real human about your investment.
Supervisor Approval - an extra level of protection
All bank transactions must be verified and authorised by our independent supervisor. It’s an extra check that adds a layer of protection.
World class cyber security protection
We comply with ‘Essential 8’ cyber security protection, developed by the Australian Government’s Intelligence Agency (ASD).
2 Factor Authentication for additional online security
We use 2 Factor Authentication to access all our important online investor portals.
24/7 ACTIVE MONITORING
We have 24/7 “eyes on glass” monitoring of our platform which means experienced security analysists are always watching over our online platforms.
We're licensed, Supervised & Regulated
To uphold our licence to operate, there are many other strict compliance requirements we must meet which are designed to protect investors and their investment.
Ready to invest smarter?
Call Sandy!
Sandy is your first point of call at Midlands. Bright, bubbly and astute, Sandy has 33 years of banking and investment experience. She left the big bankie stuff behind for the clever, welcoming and down to earth approach Midlands is known for. She’ll guide you through every step of the process over the phone, email or maybe even a cuppa.
request a callback
“Sandy’s been awesome to deal with. Nothing’s a problem, basically. I can ring her any time”
Happy Midlands Customer
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