One of the trust's funds, started in 1994, has more than $153 million invested, secured mainly on first mortgages.
Commercial and industrial loans make up 47% of the mortgage portfolio, residential loans are 42%, farm loans are 6% and bank deposits make up 5%.
A second fund, started last year, has $6 million in it.
Again, it is secured against first mortgages.
Residential loans make up about 36% of the fund, commercial and industrial 32%, farm loans 21% and bank deposits 12%.
Trust general manager Peter Hutchison declined requests for an interview from the Otago Daily Times.
In an email, he said it was business as usual for the trust.
"We are taking deposits and making loans. Investors wanting information are welcome to contact us, and do regularly, which is the appropriate means of communication."
In a letter to investors dated August 5 obtained by the Otago Daily Times, Mr Hutchison and trust chairman John Farry said it was important investors were reassured that the fund was stable.
All loans were secured by registered first mortgages over land and buildings in New Zealand.
Before any loan was advanced, the strict terms of the trust deed, prospectus and investment statement were complied with.
All activities were supervised by Trustees Executors Ltd, an independent and well-respected trustee company.
All mortgages were approved by the board and trustee.
There were no related party loans to directors, shareholders or staff.
"NZ Mortgage Income Trust is not immune to the current market conditions but we believe we have adequately protected the fund against the risks involved," the men said.
The trust was actively managing defaulting loans to achieve the best outcomes and its performance in that area at present, and over the past 14 years, had been excellent.
A reserve fund allowed the trust to provide for up to $500,000 in bad debts immediately.
Up to $1 million would be available by the end of the financial year.
The fund had an annual net income after tax of $17.5 million, which could be made available to meet potential bad debts and still provide a return to investors.
The average loan to valuation ratio of the mortgage portfolio was 48.36%.
"We appreciate that the bulk of our investors understand the provisions set out in our investment statement and that the fund is best suited for medium to long-term investors.
Our aim is to maintain the fund with adequate liquidity levels for the benefits of all unit holders," Messrs Hutchison and Farry wrote.
NZ Mortgage Income Trust has been held up as a local success story.
Dunedin law firm Anderson Lloyd conceived the idea in 1994, establishing Fund Managers Otago and the unit trust it managed, the NZ Law Mortgage Income Trust.
Between 1994 and 2005, six mortgage trusts and six management companies were established - in Auckland, Tauranga, Hastings, Wellington, Christchurch and Dunedin.
Last month, one of the six, Canterbury Mortgage Trust, froze $250 million of investors' money - one of several mortgage trusts and property funds to stop withdrawals.
AXA stopped redemptions on its mortgage backed bonds, AMP Capital Investors stopped redemptions for its $420 million New Zealand property fund along with Guardian Mortgage Trust, which has $249 million.
Fund monitoring and research firm FundSource says close to $300 million has been pulled out of mortgage trusts and property funds in the past three months.
