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Montaka launches listed Montaka Global Extension Fund


Montaka launches listed Montaka Global Extension Fund

I am delighted to announce the launch of the Montaka Global Extension Fund (Quoted Managed Hedge Fund) (ASX: MKAX). This new fund gives investors access to a portfolio of global growth opportunities through one online trade.

Our strategy is to invest in a long portfolio of businesses we believe will be structural winners in attractive markets. We will also look to profit from short selling underperforming businesses, and use capital protection measures against downside risks, when needed.

It’s now also much simpler to invest. As the new fund is an ASX-quoted managed fund, investors can easily buy and sell units through a stockbroker or share trading account with no minimum purchase, no entry or exit fees and no complicated application paperwork.

Another benefit of this structure is transparent, real-time pricing, which means transactions reflect the true value of the fund’s investments, unlike a listed investment company (LIC) or listed investment trust (LIT) which often trade at a discount.

These features make it easier for investors to access actively managed investments, weather market volatility and enhance the overall performance of their portfolios.

The fund also targets a distribution yield of 5% per annum, making it ideal for investors looking for income. Alternatively, distributions can be reinvested back in the fund to maximise compound wealth.

Identifying long-term opportunities in difficult times

Even though market volatility arising from COVID-19 is proving challenging for many investors, there are significant opportunities for investors to achieve long-term compounding of their wealth by backing the right businesses.

We believe it is possible to choose the best investments for long-term growth by understanding the key trends that will affect markets. These trends include:

  • digital transformation across enterprise and consumer markets
  • ageing populations that are increasing demand for healthcare and financial services products
  • rising wealth levels in Asia that are driving demand for wealth protection products.

These trends had already developed before the COVID-19 pandemic, but we’ve also seen some of them – like digital transformation – accelerate since the start of the crisis.

To target the companies most likely to deliver multi-decade compounding potential, our Sydney and New York teams conduct in-depth sector and market research. This allows us to continually build and pressure test hypotheses, connecting the dots between industries and between countries.

Individual stocks are subject to the same in-depth scrutiny. This includes building our own in-house financial and expectations models, conducting our own primary research, as well as leveraging proprietary external research. It is only after taking such steps that we nominate stocks we believe have a high probability of being long-term winners.

To illustrate this, our long portfolio currently includes companies we believe can thrive for years to come, such as Microsoft, Salesforce, SAP, Alibaba, Spotify, Apple, UnitedHealth, St James’s Place and insurance company Ping An.

How the Montaka Global Extension Fund works

By owning long-term winners in attractive markets – and avoiding or shorting underperforming companies in unattractive markets – we believe we can maximise our chance of achieving strong multi-decade compounding of our investors’ wealth, alongside our own.

Our strategy will typically see us hold 15 to 30 long positions, partially offset with between 10 and 40 short positions. We may also use capital protection tools, including purchasing exchange traded put options and exchange traded funds, when needed.

The fund typically operates with 130% exposure to its long portfolio and 30% exposure to its short portfolio, resulting in a net market exposure of around 100%.

Our business and its principals have invested in the Montaka Global Extension Fund, and our single largest client, an Australian private family office, has also invested over $20 million to seed the new fund.

Learn More

To learn more about our new fund, please visit the investor centre or look it up under ASX: MKAX and don’t forget talk to your financial adviser. You can also register to receive more information about the fund here: MKAX: Register Your Interest

You can learn more about active ETMFs and how they differ from LIC and LIT here.

The issuer of units in Montaka Global Extension Fund (Quoted Managed Hedge Fund) (ARSN: 639 565 807) is the Fund’s responsible entity Perpetual Trust Services Limited ACN 000 142 049 (AFSL 236648). You should read the Product Disclosure Statement (PDS) before deciding to acquire the product. Copies of the PDS are available from MGIM Pty Ltd (02) 8046 5000 or at the MKAX Investor Centre.

Before making any decision to make or hold any investment in the Fund you should consider the PDS in full. The information provided does not consider 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 a reliable indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall.


Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

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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