We changed the name of the Fund from the Devon Equity Income Fund to the Devon Dividend Yield Fund to better reflect the purpose of the Fund, which is to provide attractive returns over the long term by investing in a portfolio of shares that generates an above average dividend yield. The Fund has been one of the best performing funds in the NZ market and, as well as paying out an after tax and fee yield of 5%, has generated strong capital growth.
We also increased the number of securities the Fund can invest in from the previous limit of 25 to a range of typically 25 -35. We believe this range still keeps the Fund relatively concentrated while allowing for more diversification.
These changes took place on the 1 August 2015 and everything else with the Fund has remained the same.
The Devon Dividend Yield Fund (“the Fund”) consists of a select group of approximately 25-35 New Zealand and Australian listed companies. These stocks are chosen for their attractive dividend yields and growth prospects with the aim of maintaining the dividend yield and capital value in real terms.
|Investment||Objectives - The Fund invests in a well-researched portfolio of shares that are consistent with the objective of a long-term investor looking to invest for the purpose of:
|Strategy - The Fund invests in a select portfolio of approximately 25-35 New Zealand and Australian listed equity securities chosen for their attractive dividend yields, with some growth prospects to maintain the dividend yield and capital value in real terms. The Dividend Yield Fund is actively managed, which means the holdings and investment returns may differ considerably from its benchmark.|
|Limits - 0 – 100% NZ shares, 0 – 100% AU shares, 0 – 10% Cash (for liquidity purposes)|
|Portfolio Manager||Nick Dravitzki - Nick has over 8 years industry experience and prior to joining Devon in 2010 was an analyst at NZ Funds focussing on their Dividend Yield strategy.|
|Hedging||The Fund will typically be fully hedged|
|Distributions||Target distributions of 1.25% per quarter after tax|
|Structure||Portfolio Investment Entity (PIE)|
|Suitability||Suitable for New Zealand investors who want an actively managed, concentrated, exposure to the New Zealand and Australian stock markets. Given the nature of this investment, we recommend a minimum investment period of at least five years.|
|Fund Details||Date of Establishment: 12 December 2012|
|Date of Transition to the FMCA Regime: 14 October 2016|
|Manager: Devon Funds Management Limited|
|Superviser: Trustees Executors Limited|
|Minimum Amount for:||Initial Investment: $2,000|
|Additional Investment - $1,000 or $100 per quarter with a regular savings plan|
|Fees||Entry & Exit Fees - Nil|
|Management Fee - 0.7% p.a.|
|Performance Fee - The performance fee is the first 10% of gross portfolio performance above the hurdle rate of return of the 50:50 composite of the S&P/NZX50G index and the S&P/ASX200G index fully hedged. The high water mark can be reset every 3 years at the Manager's discretion and will be adjusted to take into account any distributions made.|
|Switching Fee - Nil|
|Other Fees - Please refer to the Product Disclosure Statement for details of other fees|
|Distributions||Quarterly (at Manager's discretion)|
|Applications & Withdrawals||Daily, by 2.30pm (NZ time) to receive that COB price.|
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The Lonsec Limited (“Lonsec”) ABN 56 061 751 102 rating (assigned July 2013) presented in this document is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) and based solely on consideration of the investment merits of the financial product(s). It is not a “personalised service” (as defined in the Financial Advisers Act 2008 (NZ)) and does not constitute a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec may receive a fee from the fund manager for rating the product(s) using comprehensive and objective criteria.
The Fund is governed by the Trust Deed dated 30 September 2016 and Fund is established within a registered managed investment scheme under the Financial Markets Conduct Act 2013 (FMC Act). You can download a copy of the Product Disclosure Statement and Fund Update below for more detailed information about the Devon Investment Funds. You can review a copy of the Trust Deed, Product Disclosure Statement and other important Scheme documents at any time by contacting us or electronically on our website or on the Scheme's register on www.business.govt.nz/disclose.