A mortgage trust is a type of investment, operated by a professional fund manager. The mortgage trust pools investors money and lends it to borrowers in the form of mortgages over property. In return for investing in the trust, investors receive regular income distributions. Mortgage trusts are run by managers, in the case of Norfolk Mortgage Trust the manager is Norfolk Mortgage Management Limited. The management company has the responsibility to complete operational tasks such as promoting the Trust, accepting deposits, investing funds and paying returns to investors. Norfolk Mortgage Management Limited is a licensed fund manager under the Financial Markets Conduct Act 2013. As a result, the activities of the Trust are monitored by a professional supervisor, Covenant Trustee Services Limited. The role of the supervisor is to hold all the assets of the fund on behalf of the investors and to monitor compliance by the manager within the requirements of the Financial Markets Conduct Act 2013 and the Trust Deed.
What is a PIE fund and how does it affect my tax return?
Norfolk Mortgage Trust is a Portfolio Investment Entity (PIE) fund. A PIE fund pays tax on investment income based on the prescribed investor rate (PIR) of their investors rather than at the entity's tax rate. What this means for you is that Norfolk pays the tax on your interest distribution directly to the IRD, so you do not need to include your interest income in your annual tax return. The top tax rate for a PIE fund is 28%.
How do I redeem my investment?
When you want to redeem your investment, you are required to give six months notice. You will need to complete a redemption form; however we do not charge you any exit fees. Should you need to withdraw your investment urgently, we are happy to discuss options and recommend that you contact us as soon as possible.
Is there a minimum investment amount?
Yes, the initial investment minimum is $5000. After this initial investment you may add to it as often as you like and there is no minimum amount required for these subsequent deposits.
Can I invest from overseas?
Unfortunately, investment is only open to New Zealand residents. Any investors must be registered with the IRD and be able to provide an IRD number.
Who are Norfolk Mortgage Trust?
Norfolk Mortgage Trust was formed in 2006 by Jack Porus and Stu Smith. They recognised that there was a gap in the market for an investment that earned competitive returns and was simple for investors to understand. Professional Mortgage Investment Trust (PMIT) was established in July 2004 in Hamilton. Joining Norfolk in November 2016, PMIT became Norfolk (No. 2) Trust. In March 2018, Norfolk (No. 2) Trust merged with Norfolk Mortgage Trust.
Who is Norfolk Mortgage Management Limited?
The management company, Norfolk Mortgage Management Limited, is contracted to the Trust to complete Trust activities daily. The CEO of Norfolk Mortgage Managment Limited is Glenys Holden. The directors are:
Jack Porus (Chairman)
Don Howden (alternate director)
The day to day tasks of Norfolk Mortgage Management Limited include the promotion of the Trust, accepting deposits, completing due diligence and credit assessment on investment options, managing investments and making monthly payments to investors. The manager is paid a fee by the Trust for this work.
What does the supervisor do?
The supervisory Trustee (known as the supervisor) has strict statutory and professional roles and responsibilities. It holds the Trust's assets on behalf of all of the investors. The supervisor monitors the management company regularly and has the ability to suspend the manager if any of the Trust rules and covenants are breached. Norfolk Mortgage Management Limited is supervised by Covenant Trustee Services Limited.