For much of its long history, Midlands has been a quiet constant in the regional investment landscape. Founded on conservative principles and backed by bricks and mortar, the Hastings based investment manager has spent decades doing what it does best, helping everyday New Zealanders earn steady returns from property backed lending.
But over the past three years, something has shifted. What was once a cautious, paper based organisation has emerged as a confident, modern investment manager with a clear strategy, strong governance, and a business that is growing faster than at any point in its recent history.
“The focus for the past three years has been on strengthening the foundations of the business so we’re well set up for the future,” says Chief Executive Officer Rhys Trusler. “That work is paying off. We’ve seen what this team is capable of, and it’s given us the confidence to think bigger.
Performance that tells the story
That proof is written clearly in the numbers. Midlands’ Smarter PIE Fund has grown more than 30 percent in the past year alone, increasing funds under management from $125.0 million to $163 million (as at 31/01/2026). Over the past three years, growth has accelerated year on year to a level that exceeded internal expectations.
“We budgeted for 17 percent growth this year, which at the time felt aggressive,” says Rhys. “We hit that target by the 26th of November, with 4 months to go. That tells you everything about the momentum in the business.”
Performance has followed a similar trajectory. The fund delivered an average annualised return of 6.12%* for investors in the 2025 year, finishing at 5.85%* (after fees but before tax) for the quarter ended 31 Dec 2025. Over the longer term, Midlands has achieved a 10 year average annualised return for investors of 5.42%* (after fees but before tax), underpinned by a deliberately conservative lending model.
“We are not chasing returns at all costs,” Rhys says. “Every loan is secured by a first ranking mortgage, and less than 10 percent of enquiries we see ever make it through. That discipline is what helps protects investors’ money.”
Modernising the engine room
That conservative core has remained unchanged, but almost everything around it has evolved. Up until now, Midlands has been heavily paper based, reliant on ageing software and underutilising data. Today, it has committed to the most significant technology transformation in its history, with a future proofed digital platform designed to support national growth.
“We realised we couldn’t do this ourselves,” Rhys says. “So we hired a Head of Transformation and a Technology Transformation Specialist, and we’ve signed off a substantial budget to get it right.”
The new technologies go live this year, will create a central data layer that allows Midlands to plug in and swap out software without disrupting operations. Real time dashboards, improved investor experience, and faster decision making will follow.
“For the first time, we’ll be able to see liquidity, lending pipelines and performance in real time,” Rhys says. “That changes how you run a business — less time wrestling spreadsheets, more time focusing on what the numbers are telling us. The end result is better business decisions.”
Culture, community and confidence connection
For Head of Marketing & Investments Christie Campbell, who joined the business just over two years ago, the shift has been cultural as much as technical.
“There’s been a real shift in culture,” Christie says. “There’s now a genuine hunger to move forward, a lot of positive energy, and real belief — supported by some very talented people across the business.”
That energy has been matched with a renewed focus on community, something Midlands sees as central to its identity, even as it prepares to grow beyond Hawke’s Bay.
“We made a deliberate decision to reset our marketing and put more into the local community,” Christie says. “We sponsor bowls clubs, the rescue helicopter, and many community events. It’s funded by Midlands, not our investors’ money, and it feels like a really good fit.”
Maintaining that human touch as the business grows will be a challenge, she acknowledges.
“One of the things our investors love is that they can walk through the door or talk to a real person,” Christie says. “Some people will always value that. Others want everything digital. The key is doing both well.”
Looking ahead
The investor base itself is also evolving. Midlands’ traditional sweet spot has been investors aged 50 plus, often moving money out of term deposits in search of better returns without the volatility of the share market. While that remains core, the business is now actively researching how to engage a younger audience and what products might suit them.
“We don’t want to just create something and try to sell it,” Rhys says. “We want to understand what customers really want, then build products that make sense for our expertise.”
Governance has also undergone a quiet but significant reset. The board has been streamlined and professionalised, with independent directors and a clear separation from its historic law firm shareholder base.
“We’ve built a structure that’s fit for where Midlands is heading,” Rhys says. “It supports better decision making, sharper accountability, and long term growth.”
That next phase arrives as Midlands prepares to celebrate 130 years since its origins in 1896, a milestone the business plans to mark with investor events and a national roadshow.
“The next chapter is about honouring our long history, having confidence in what the business can achieve, and knowing we have the right people in place to make it happen,” says Christie.
For Rhys, growth is about building resilience for the benefit of our investors. “The best way to strengthen this organisation is to grow,” he says. “The bigger and more diversified we are, the stronger we become.”
After three years spent strengthening the building blocks of the business, Midlands is no longer just a regional investment manager with a long past. It is a business firmly focused on its future, confident in its foundations and ready for its next era.
Disclaimer: *Midlands Funds Management Limited is the issuer of the Midlands Smarter PIE Fund and is not a registered bank. Returns are not guaranteed and past performance is not a reliable indicator of future performance. The product disclosure statement is available from our website, investmidlands.co.nz.
