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A very pleasing year

A very pleasing year

It has certainly been a very pleasing year. Forty months after launch, Montgomery clients benefit from the energy, intelligence and enthusiasm of fourteen dedicated professionals and two domestic products – The Montgomery Fund and the Montgomery [Private] Fund led by Tim Kelley and Russell Muldoon respectively – and two global products – the Montgomery Global Fund and Montaka Global Fund, led by Andy Macken and Chris Demasi.

Focusing today on investing in Australian businesses, The Montgomery Fund has delivered its initial investors an absolute return of 75.18 per cent after expenses up to 30 November 2015. This assumes reinvestment of distributions and equates to a compound annual return of 18.3 per cent. Over the same period, the S&P/ ASX 300 Accumulation Index recorded an absolute return of 37.05 per cent, a compound annual return of 9.9 per cent. For an investor who initially invested $100,000, The Montgomery Fund has out-performed the broad Australian market by 38.13 per cent or $38,130.

Particularly pleasing for me is the fact the Montgomery [Private] Fund and The Montgomery Fund have both performed exceptionally in a tough market environment. The benefit of both funds is that they hold meaningful levels of cash when the opportunities to invest become scarce. In the twelve months to 30 November 2015, for example, several big Australian companies have returned very poor share price performances. Investors in BHP (-33%), RIO (-21%), Origin Energy (-47%), Santos (-54%), Woolworths (-23%), ANZ Bank (-13%) and National Australia Bank (-9%) have had a disappointing year and the S&P/ ASX 300 Accumulation Index, which assumes reinvestment of dividends, is up a miserly 2.12 per cent.

In contrast, the Montgomery [Private] Fund and The Montgomery Fund are up 17.65 per cent and 16.55 per cent, respectively.

It is not uncommon for investors to want to ‘time’ their investment in a fund. What these results demonstrate is that even if you had correctly predicted twelve months ago that the stock market would be lower today, it has been a very expensive error to wait before investing in either of the domestic Montgomery funds.

Please click on the links for more information on the Montgomery [Private] Fund or The Montgomery Fund.


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.

Why every investor should read Roger’s book VALUE.ABLE


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  1. hi Roger thanks for providing such an informative blog, no strings attached , where do i go to find out detailed information on australian companies- mergers , acquisitions and stuff like that?
    appreciate any information you can provide.
    hope you have an enjoyable and safe christmas.

  2. zoran arnautovic

    Hi Roger/David
    I wouldn’t mind wearing T shirt that has on it : I am Monty are you ?
    On the back you could have rogermontgomery.com

  3. Well done to all at Montgomery!

    This blog and the general nature in which you all approach the way you do business in terms of being open, honest and generous with your knowledge is what sets you apart (and of course your investment returns) from the rest.

    Merry Christmas and I wish you all a safe and prosperous 2016!

  4. To Roger, David and all the Montgomery Team
    Well done on another fantastic year ! It goes without saying that I’m truly delighted with the communication, honesty and openness of the team. The results stem from the rigorous and thoughtful approach that makes so much investment sense. Myself, being an investor in your domestic and global funds and on behalf of all the clients we placed in your funds, thank you for a marvellous performance. Keep up the great work !

  5. I remember Roger saying not so long ago that if he was investing his own money he would put it in only his top 6 or 7 stocks. As good as your returns were, I am guessing they would have been even better if you had a ‘maximum’ conviction fund with only these stocks in it? Is this right, and would you ever consider launching such a fund?
    My guess is that the volatility would not make for a good funds management business. However I am sure there are many Monty followers who would love to invest in such a fund.

    • Hi peter, You only need to imagine what the returns would have been if we were 100% invested in equities to arrive at some sense of that. The volatility issue is one for investors to be concerned about. The smoother the returns the easier it for an investor to stick with a strategy that requires years to reach its full potential.

  6. Hi Roger, David & Team,
    Thank you for a job well done, much appreciated
    Hope you and your families gave a great Christmas & New Year
    Looking forward to 2016
    Kind regards
    Gary & Caryll

  7. Keep rocking on. Been with you since day one. As the Gershwin song says
    “Who Could Ask For Anything More”

  8. Fortunately I didn’t make that mistake.
    The Montgomery team have done an outstanding job. I love the insights on decisions made in weekly posts and interviews. Thank you again for making investing not only profitable but also insightful.

  9. Well you beat me at 14.82% for the 12 months up to 30 November, but I think with returns in the double digits we can all be happy.

      • Too true, I’m yet to face my first bear market so I’m sure that will be the real test! Once the team at netwealth allow the Global fund and/or the Montaka fund on their platform I’ll be handing most of my international allocation to you guys – it’s enough trying to manage local shares, I’ll leave the overseas to someone more experienced. (I can’t say ‘professional’ any more as I’ll be one myself from Monday!)

      • Very True Roger, and it takes more time than I initially expected but with my performance for the 12 months up to Nov 30 2015 @ 21.69% I do feel its is worth it. It took me a few years to build my framework – something I think is very important. And I must thank you for your great book Valuable which started my journey. The other key benefit of being a retail investor as you mentioned before is the ability to invest in the more illiquid stocks that the larger fund managers would sometimes like to but are unable due to liquidity.

  10. Congratulations on this great results. Once I have enough funds I am going to invest with you. Keep up the good work guys.

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