Devon Australian Fund (Wholesale) vs Norfolk Mortgage Trust Fund

The most material structural difference is asset class and liquidity profile. Devon Australian Fund holds Australasian equities — a listed, market-priced asset class — and processes redemptions daily, subject to a broadly worded suspension power. Norfolk Mortgage Trust Fund invests in private credit secured by first mortgages, with a maximum LVR of 75%, and requires 183 days' redemption notice; the manager may suspend redemptions if requests exceed 5% of units in any three-month period, or must call an investor meeting if requests exceed 20% of units on issue. This illiquidity premium is the structural trade-off underlying the two funds.

On fees, Devon charges a management fee of 0.87% per annum; Norfolk charges 2.5% per annum. Norfolk discloses a specific target 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)" — whereas Devon's IM does not specify a target return figure. Norfolk has been operating since 2006; Devon's IM does not disclose an inception date. Both are PIE-structured unit trusts eligible for PIR taxation. Devon's minimum investment is NZD 10,000; Norfolk's is NZD 5,000. Devon pays distributions semi-annually; Norfolk pays monthly. Devon is supervised by NZ Guardian Trust; Norfolk by Public Trust. Norfolk's PDS confirms it is not wholesale-only; Devon is marketed as a wholesale fund.

Verify all figures against each fund's current IM or PDS before relying on this summary.