Booster Innovation Fund vs Norfolk Mortgage Trust Fund

The most material structural difference is asset class and return profile: the Booster Innovation Fund invests in private equity and targets "a significant total rate of return (net of fees but before tax) that outperforms the NZX 50 Index over rolling 15-year periods," while the Norfolk Mortgage Trust Fund invests in private credit secured by first mortgages and targets a more modest return "to exceed the Six-month term deposit rate (published by the RBNZ) by 1.4% per annum (after the deduction of fees and expenses)." These mandates imply materially different risk and return expectations.

On liquidity, both funds limit redemptions but in different ways. Booster offers quarterly withdrawal windows with an explicit caution that the fund should be "regarded as not readily redeemable." Norfolk requires 183 days' notice with at-exit redemption frequency, and the manager may suspend redemptions if requests exceed 5% of units in a three-month period, or 20% of units triggers a mandatory investor meeting.

Fee structures diverge sharply: Booster charges a 0% base management fee but applies a 20% performance fee above a 10% hurdle, whereas Norfolk charges a 2.5% annual management fee with no performance fee disclosed. Norfolk distributes income monthly; Booster makes no equivalent income distribution. Norfolk discloses an LVR cap of 75% on first-mortgage security; Booster's IM does not specify an LVR equivalent. Both funds are PIE structures, share Public Trust as supervisor, and are open to retail as well as wholesale investors. Booster's minimum investment is $500 versus Norfolk's $5,000. Booster launched in November 2021; Norfolk has operated since 2006.

Always verify these details against the current source IM or PDS before making any investment decision.