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An update on the Montgomery business


An update on the Montgomery business

In this week’s video insight I discuss the transformation Montgomery has undertaken over the last three years including our offerings from Gary Rollo and Dominic Rose’s Montgomery Small Companies Fund, our partnership with Polen Capital and their global offerings, our partnership with Aura Group to offer investors income strategies and most recently our partnership with Australian Eagle.


Roger Montgomery: 
I’m Roger Montgomery from Montgomery Investment management and welcome to this week’s video insight. Typically, these short videos are published to provide you with market insights, global or domestic stock ideas for you to research, or educational content such as our recent videos on identifying quality and value.

This week I depart from the usual format to talk about the transformation Montgomery Investment Management has undertaken over the last three years or so.

Back then we met two gentlemen, Gary Rollo and Dominic Rose who impressed us with their investment process, and their investment performance in the small caps space. Disciplined, passionate and intellectually honest, meeting Gary and Dom led to a joint venture and the Montgomery Small Companies Fund. Since its inception, in September 2019, the Montgomery Small Companies Fund, under Gary and Dom’s leadership, has outperformed the small cap benchmark by almost four per cent per annum, 3.87 per cent to be precise. (as at 31/07/2022) And remember this period includes the distruption to markets and economies caused by the pandemic.

Our warm working relationship with Gary and Dom gave us an appetite to search for other unrecognised or little-known managers who were shooting the lights out and who might complement our existing strategies.

With a global gap in our line-up we discovered the wonderful people at Polen Capital. Based in Boca Raton Florida and with offices in Boston and London, and now US$82 billion under management, Polen was founded in 1979. Its flagship fund, the Polen Focus Growth Fund has been running continuously since 1989 and over those 33 years the fund has beaten the S&P500 by just under three per cent per annum – remember that’s over three decades. That performance may just offer an answer to whether active management can beat the index. In Australia, we now provide exclusive access for private and retail investors to Polen’s Global Growth Fund managed by Damon Ficklen and Jeff Mueller, and the Global Small and Mid Cap Fund managed by Rob Forker. And in the not-too-distant future we expect to be launching Polen’s Global Emerging Markets Fund.

Another gap we identified in our line up, and one that needed to also meet investor needs was income. Some have solved this investor need with a high yield equity fund, but we believed a better solution involved uncorrelated returns – returns that didn’t move in line with equities.

We found and teamed up with Brett Craig at Aura Group. Prior to joining Aura Funds Management Group, Brett held a number of roles at Macquarie Group over an 11 year period including Vice President Debt Markets, where he focused on originating, structuring and distributing debt products primarily in the Australian market. The Aura High Yield SME Fund is a wholesale fund investing in Private Credit. In the five years since inception, which takes in the global pandemic, Brett and his team through providing credit to SME’s have produced monthly income for their investors, and no negative months, generating a compounded annual return of 9.62 per cent. (as at 31/07/2022). Montgomery offers access to the Aura High Yield SME Fund to wholesale and sophisticated investors, and we will soon launch the Aura Core Income Fund for retail investors.

Most recently we have brought Australian Eagle under our umbrella to manage our all-cap Australian equities mandates including The Montgomery Fund, The Montgomery [Private] Fund, with me, and we’ll also be distributing the Australian Eagle Long Short Fund in coming months. For 17 years Sean Alan and their team have shown it is possible to materially beat the major market index investing in Australian equities and we are absolutely delighted to have Sean, Allen and Daniel joining me here at our offices in Castlereagh Street.

If any of these funds interest you our you believe your clients or your adviser might be interested please give Montgomery a call and ask for Toby Roberts or Dean Curnow.

Next week we return to our regular programming, and I’ll discuss the way to think about markets such that you are taking advantage of them rather than being taken advantage of.

You should read the relevant Product Disclosure Statement (PDS) before deciding to acquire any investment products.

The information provided does not take into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided and consider seeking advice from a financial advisor if necessary.

You should not base an investment decision simply on past performance. Past performance is not an indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall.


Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

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.

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