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Investor Newsletter #3 - September 2014

Welcome to our September 2014 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. 

We Are the Lucky Country for Depositors
New Zealand has the highest deposit rates of all the OECD countries. Banks here offer around 4.00% to 5.00% on deposits, depending on the term.  General Finance currently offers 6.75% for 2 years and 7.00% for 3 years. If we look at other jurisdictions, a two year bank deposit in the United Kingdom ranges from 1.50% to 1.80%. In the USA it is even worse - it is hard to find a bank offering much more than 1.00%. Australia is a little better.  You can find a two year term rate, with a bank, of around 3.00%. In countries, such as the UK and USA, investors are really living off their capital. In New Zealand we are doing much better. 

Our new prospectus and investment statement has been prepared and has been registered. All our current investors will have, by now, received a copy. We wish to draw your attention to the following:

  • a simple five year financial summary – see page 4
  • a profile of our board of directors – see pages 7 and 8 and
  • the executive director’s update, which gives a good overview of the company’s activities – see page 3

We urge our investors to review our prospectus and if you have any questions, please do not hesitate to contact us.  Investments can only be made on the form that accompanies the prospectus and investment statement.  Let us know if you need another copy.

New Super Rate
Currently we are offering a bit of a special - a rate of 7.00% for a 3 year term. We are offering this to attract some further funds, so we can grow a bit more. We believe that this is an attractive offering. For those investors who deposit $10,000 or more with us, we do offer our monthly payment option.  This is an attractive feature for those looking for a regular monthly income.

Our Current Lending
Our lending criteria remain unchanged from the previous year.  We are focused purely on residential lending - that is houses, flats and residential sections.  We do not lend on commercial property or sub divisions.  Demand for new loans is steady.  It is a bit better than last year, reflecting a slightly stronger economy.  We are still being selective with our lending approvals.  For example, we are not keen on lending in declining smaller towns in either the North or South islands. We are continuing our conservative stance and we do not lend beyond 70% of a property’s value.

Next Interest Payment
Our next quarterly interest payment will be made on the evening of Tuesday 30 September 2014. 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 James Lockie on 09 526 7800 or by email to  Our website is     

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

Your continued support is appreciated.