Devon Dividend Yield Fund (Wholesale) vs Midlands Income Wholesale Fund

The most material structural difference is asset class and liquidity profile. Devon Dividend Yield Fund invests in listed equities and offers daily redemptions with no notice period required, while Midlands Income Wholesale Fund allocates to private credit secured by first mortgages and requires 30 days' notice with redemptions processed at-exit rather than on demand. This distinction in underlying assets and exit mechanics is fundamental to how each fund behaves in stress scenarios.

Both are PIE unit trusts eligible for PIR taxation and distribute quarterly. Their gate provisions differ in character: Devon's IM states broadly that the manager has "the ability, in certain circumstances to suspend or defer redemptions," whereas Midlands discloses a specific threshold trigger — withdrawals exceeding 5% of units on issue within any three-month period may be redeemed by instalments or deferred at the manager's discretion. Midlands also discloses an LVR cap of 75% on first-mortgage security; Devon's IM does not specify an equivalent credit constraint, consistent with its equity mandate.

The minimum investment gap is significant: Devon requires NZD 10,000 versus Midlands' NZD 100,000. On fees, Devon discloses a 0.62% management fee plus a 10% performance fee; Midlands' IM does not include comparable fee figures in the data provided. Midlands' target return is defined as income "at a level which exceeds the average 3 month term deposit rate advertised by all relevant New Zealand registered banks," whereas Devon does not state a comparable target return benchmark. Supervisors differ — New Zealand Guardian Trust (Devon) versus Trustees Executors (Midlands).

Always verify all details against each fund's current source IM or PDS before making any investment decision.