Investor Newsletter – March 2015

Welcome to our March 2015 General Finance quarterly newsletter. We appreciate your support. The purpose of this newsletter is to keep you informed about the company and various financial matters that may interest you.

Non-bank Deposit Takers Licence
We are pleased to advise that General Finance has been issued with a non-bank deposit takers licence by the Reserve Bank. This means that we can continue to operate as a non-bank deposit taker and accept retail deposits from the public.  This is positive as, to date, very few finance companies have received such authorisation. Our business plan is to continue to grow our book on an incremental basis.

Cup of Tea Invitation
We appreciate the support of our investors. If any investor or potential investor would like to see where we work, meet some of the directors and our staff, and talk about what we do, you are very welcome to call us to arrange a time come and meet us. There will be a cup of tea or coffee waiting. We look forward to hearing from you.

Interest Rates for 2015
We are often asked “where do we think interest rates are going over the next twelve months?” There is little good news for investors.  Interest rates, at best, will remain where they are or they may decrease a little. This is due to the very low inflation, at around 1%, that we are currently experiencing. It is back to levels not seen since the 1950’s.  Most central banks around the world are still cutting wholesale interest rates, including our neighbour, Australia.  What will our Reserve Bank do? - keep the status quo?  If there is too much upward pressure on the exchange rate, we may be in for a cut.  Our current rate of 7% p.a. for three years is a most attractive return. 

Progress in the First Quarter
This year, as with last year, has started positively for us.  We have received a number of lending propositions.  All our lending is over residential property - that is individual dwellings, tenanted properties and individual sections. Over the past year, residential property has increased in value in most parts of the country, improving our overall security position. We are still careful, as some regions and towns face low or even negative growth prospects. One of the strengths of General Finance is that we lend across the country and in this way achieve a more diversified portfolio.

Next Interest Payment
Our next quarterly interest payment will be made on Tuesday 31 March 2015. Direct credits will be processed that evening, with cheques (if applicable) and paperwork being forwarded during the week.

If you have any questions about your investment please do not hesitate to contact William Cairns on 09 526 7801 or by email to wcairns@general.co.nz. Our website is www.general.co.nz.

If you want to invest more funds, you can obtain an investment statement and application form from our securities registrar. Their number is 0800 500 602.

Your continued support is noted and appreciated.