Montgomery Global Fund Update

Montgomery Global Fund Update

Members of the Montgomery Global team have just completed a roadshow to the financial planning community in several cities across Australia and New Zealand. This has coincided with the recently released ratings for the Montgomery Global Fund of “Recommended” from Zenith and “Investment Grade” from Lonsec.

Pleasingly, the Montgomery Global Fund has since its launch on 1 July 2015 delivered our investors a return of 16.3 per cent, after expenses, while the MSCI World Net Total Return Index, in Australian Dollars, is up 10.3 per cent. The 6.0 per cent outperformance over 21 months equates to annual out-performance of 3.27 per cent. Importantly this result has been achieved with a typical cash weighting of 15 to 20 per cent.

These results are illustrated in the graphs below, and while it is still early days, special mention should be made regarding the upside/ downside capture. While several of our peers go up and down with the market, the Montgomery Global Fund has captured 98 per cent of any upside in a rising market and 72 per cent of any downside in a falling market.

At the time of writing, the Montgomery Global Fund owns 21 high quality businesses of which 36 percent are domiciled in North America, 28 per cent in the Asia/ Pacific, 15 per cent in UK/ Europe and the balancing 21 per cent is largely in US Dollar Cash. To emphasise our “all-cap approach to investing”, the market capitalisation of the 21 stocks owned by the Montgomery Global Fund varies between US$754 b (Apple) and US$1.9 b (Insperity).

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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.