The seven months to 31 January 2016

The seven months to 31 January 2016

The first seven months of the Fiscal 2016 year has been difficult for investors. The S&P/ ASX 300 Accumulation Index has declined by 5.78 per cent while the MSCI World Net Total Return Index in Australian Dollars fell by 2.24 per cent.

In this context the Montgomery products have done a good job for our investors. On the domestic front, the Montgomery [Private] Fund is up by 10.09 per cent, while The Montgomery Fund is up by 8.32 per cent for out-performance of 15.87 per cent and 14.10 per cent, respectively. And on the global front, the Montgomery Global Fund is up by 0.87 per cent, out-performing its benchmark by 3.11 per cent.

Most pleasing has been the performance of the Montaka Global Fund. This product was originally designed for wholesale investors with a minimum initial investment of $1 million. In the seven months to January 2016, general investors in The Fund received a return of 16.78 per cent.

In terms of performance attribution, Montaka’s “short portfolio” has added significant value. Montaka’s defensive attributes have worked very well during this tumultuous period and at the end of January, The Fund had “net market exposure” of 34 per cent, which is at the low end of the typical 30 per cent to 70 per cent range. The mechanism governing Montaka’s long/short portfolio management is illustrated below.During October 2015 we launched the Montaka Global Access Fund for our retail clients. It has a $50,000 minimum initial investment and feeds directly into the Montaka Global Fund. In the three months to 31 January 2016, this Fund grew by 1.86 per cent at a time when the MSCI World Net Return Index in Australian Dollars declined by 7.30 per cent. This came at a time when most funds delivered a negative return for their investors and many indicies have entered a “technical” bear market.

All returns detailed above are net of fees.

The next subscription date for Montaka is Tuesday 1 March 2016 and new subscribers should have their documents and funds in by 22 February. Investors interested in the Montaka Global Access Fund, please click here. Investors interested in The Montaka Fund, please contact Paul Mason, COO of Montgomery Global, at pmason@montinvest.com or myself on 02-8046 5000.

MORE BY DavidINVEST WITH MONTGOMERY

Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.