Investor Newsletter #4 - December 2014

Welcome to our December 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.

2014 in Review
This year has been a steady one for us. On the deposit side, more people have been investing with us and existing clients are staying and rolling over their investments (and in many cases adding to their original sum). It is pleasing to have new investors approaching us. The housing market, the area where we do all of our lending, is divided into two distinct groups. Both Christchurch and Auckland are particularly active, whereas the rest of the country is subdued. Our lending book is continuing to grow.

Crystal Ball for 2015
As we operate in the financial markets every day, we do get to observe certain trends that are likely to have an impact next year. The first is that interest rates have probably peaked, certainly in the short term (and over the next twelve months). Inflation is low and if lower oil prices persist, inflation will remain low. Although our economy is seeing reasonable growth, this will remain relatively modest - although better than for many of our trading partners. Our population will continue to increase, which is positive for growth. New Zealanders are deciding that this is not a good time to be going overseas, either to emigrate or to work for a few years, while others are returning. Immigration continues. Unemployment is likely to ease a little, but most new jobs (perhaps over 70%) are being created in the greater Auckland region. The exchange rate is always hard to predict, as it is not solely based on what we do. If an economy, such as the USA, grows more than ours, it is fair to say that our currency will depreciate compared with theirs. We believe that next year will be very similar to this year.

Next Year for Us
We are going into next year on a positive note. Both our depositor numbers and our loan portfolio have grown. Our strategy is to continue to grow in a controlled manner. There will be no change in our lending criteria. We will continue lending on residential mortgage applications which include such things as residential homes, small blocks of flats and lifestyle blocks. We tend to lend in areas which are growing, but we do lend New Zealand wide in order to have a diversified lending portfolio.

Next Interest Payment
Our next quarterly interest payment will be made on Wednesday 31 December 2014. Direct credits will be processed that evening, with cheques (if applicable) and paperwork being forwarded during the week.
As this is our last newsletter for the 2014, we wish everyone a Merry Christmas and a happy New Year. We appreciated your support this year and look forward to your continued support in 2015.
If you have any questions about your investment please do not hesitate to contact James Lockie on 09 526 7800 or by email to jlockie@general.co.nz. Our website is www.general.co.nz.

Your continued support is appreciated.

May we take this opportunity to wish you and your families a very Merry Christmas and all the best for the New Year.