What is First Mortgage Pie Trust?
First Mortgage PIE Trust is a managed investment fund available within Emerge, giving you another option for your money.
When you invest in the fund, your money is pooled with other investors and used to fund loans secured by first registered mortgages across New Zealand residential, commercial, and rural property.
How does it work?
Aims to return at least 1% p.a. above the average 12-month term deposit rate offered by NZ's four main banks (pre-tax, after fees and expenses)
Start from $500, with top-ups from $100
Risk rating 1 out of 7 (this does not indicate a risk-free investment)
Returns are earned daily, paid quarterly, then automatically reinvested
Your balance stays visible in your Emerge app
How to set up your investment account
Ensure your Emerge app is updated to the latest version
Select Accounts on your home screen
Tap the + in the top right corner
Select First Mortgage PIE Trust
FAQ’s
What is a PIE fund?
PIE stands for Portfolio Investment Entity. It means your returns are taxed at your Prescribed Investor Rate (PIR) - typically 10.5%, 17.5%, or 28% depending on your income - rather than your income tax rate. For many people this is more tax-efficient. You can find your PIR using the IRD's calculator at ird.govt.nz.
Is my money safe?
FMT PIE Trust is rated 1 out of 7 for risk - the lowest possible rating for a managed fund in New Zealand. It's backed by NZ first registered mortgages, not shares or cryptocurrency. It's not a bank deposit, so it isn't government-guaranteed, but it carries the lowest risk rating available for this type of investment. Returns are not guaranteed and can change.
Can I get my money back if I need it?
FMT has a suggested investment horizon of 2 years. If you need to withdraw early, you can. Redemptions are processed by FMT - please refer to the Product Disclosure Statement for current redemption timelines. There is no additional withdrawal fee for Emerge customers.
What does PIE tax treatment mean for my business?
It means your FMT returns are taxed at your Prescribed Investor Rate (PIR) rather than your company's income tax rate (typically 28%). For many NZ SMEs, this results in a more favourable tax position. Your PIR depends on your circumstances - confirm it with your accountant or use the IRD calculator at ird.govt.nz.
Can we put our company reserves in FMT?
FMT PIE Trust is designed for SME cash reserves - the float above your daily operating expenses. It is not suitable for businesses with strict treasury mandates requiring deposits with A-rated NZ registered banks (as FMT does not qualify as a bank deposit). If your business has formal treasury requirements, check with your CFO or financial adviser before investing.
Is this the same as KiwiSaver?
No. KiwiSaver is a long-term retirement savings scheme with restrictions on when you can withdraw. FMT PIE Trust is a managed investment fund for spare savings with a 2-year suggested horizon. They serve different purposes - FMT does not replace your KiwiSaver.
What is the minimum investment?
$500. There's no maximum. You can add more to your FMT balance at any time inside the Emerge app.
Is FMT trusted and supervised?
FMT PIE Trust is a registered managed investment scheme. Scheme number 10249 on the Disclose register. It is also supervised by Public Trust who holds all fund assets on behalf of investors. They are one of NZ's most established financial supervisors, operating under the Financial Markets Conduct Act 2013.