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New Retail Fund Coming Soon

New Retail Fund Coming Soon

Click on image to enlarge

Recently Mercer released their 1 year fund manager tables to the end of May 2012 (see above table).  We decided to compare our returns to the sixty -odd covered in the survey.  The red line marks the return and relative ranking of the Montgomery [Private] Fund to those of other managers.  If The Montgomery [private] Fund had been covered in the survey, it would rank No#2 all things being equal.  The median manager return -9.3%.

As many of you know Montgomery Investment Management recently hired Mr David Buckland as CEO and Mr Tim Kelley as Head of Research.  I have linked the Press Releases of their appointments with their names and you can simply click on their names above to see their backgrounds and credentials.

David has wasted no time preparing a new Product Disclosure Statement for The Montgomery Fund.  The Montgomery Fund will be a Retail Fund that will continue in the value investing tradition already employed here with great success for the very small group of investors we work for in the wholesale The Montgomery [Private] Fund.

With the hiring of Mr David Buckland and Mr Tim Kelley we now have the capacity to offer the benefits of our unique value investing style to all investors for the first time.  Of course investments will only be able to be made through the form that accompanies the Product Disclosure Statement, which will also disclose other material information such as fees and charges and personnel.

Prospective investors should seek and take personal professonal advice before making any investment decision.

At our meeting today, we discussed an anticipated August launch date as well as providing access to investment insights exclusively to The Montgomery Fund investors.

If you have been interested in investing but felt the $1 million minimum for The Montgomery [Private] Fund is not appropriate for your circumstances, then the retail The Montgomery Fund could be worth discussing with your adviser or accountant.  We currently anticipate offering a minimum investment application of $25,000.

Once again please be sure to read the PDS in its entirety and seek and take personal professional advice.

I will soon be sending you correspondence to pre-register your interest.

If however you feel you might miss that correspondence, your email has recently changed or you will be away, you can pre-register at www.montinvest.com and click the APPLY TO INVEST button.  The above form will appear and after completing it, be sure to select the button “Retail Investor < $500,000”.

You will then receive an automated email from my office and be registered to receive the PDS as soon as it’s received all of its approvals.  If you decide to proceed and/or your advisor approves, we look forward to working for you.

If you are a planner or advisor or responsible for dealer group approved lists or you are an executive at a research house or ratings agency and would like to discuss next steps feel free to call the Mr David Buckland at the office on (02) 9692 5700.

Please Note: Investments can only be able to be made through the form that accompanies the Product Disclosure Statement, which will also disclose other material information such as fees and charges and personnel.

Posted by Roger Montgomery, Value.able author, Skaffold Chairman and Fund Manager, 18 June 2012.


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.

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


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  1. Hello Roger

    What has the retail “The Montgomery Fund” performance been since inception and is it open for investment.

    Thank you

  2. HI Roger,
    You refer to 60-odd but there are not that many on this table. How did you choose the ones you have presented? Also is the 3.8 % pre costs or post costs?

  3. Hi Roger,

    Will the fund be investing in Australian listed companies only, or international as well?


    • Hi Stella,

      Australian Companies at this stage Stella. For international I strongly urge you to seek independent advice about the funds run by Magellan Financial Group. Chris and Hamish are doing a tremendous job following the principles of value investing and applying them to global companies!

  4. Hi Roger. Just finished Value.Able – congratulations on a superb book. Just wondering if the new retail fund be open to NZ resident investors? Thanks

    • Thanks Stuart. Just trying to find your address to send you some information. Who’s name did you order the book under or when did you order it? Will send the info.

      • Thanks, would have been ordered under my name – Stuart P, and was ordered within the last 90 days I believe. Regards

  5. Hi Roger,

    At 3.8% return, I might just keep my cash in the home loan offset account which saves me 6.4%. Let me know when the return is looking a bit better.



  6. Will this fund be open to self-managed super funds? My super fund does not have enough money to invest in the Montgomery (private) fund.

  7. Hi Roger , i’m assuming ( yes i know what they say about assuming ) daily unit pricing , withdraw 5 business days etc

  8. Paul Audcent

    Well I’ve kept some back for such an event Roger. But I will be away to the UK on holiday with my grandchildren in mid September so hopefully your 25k fund will be released before.

  9. Roger,

    Are the returns listed in this post total returns i.e. with dividends reinvested?

  10. Hi Roger

    How much “personal involvement” do/will you have with these funds? Are the people you employ to manage them bringing their own experiences/strategies or are they mandated in following your strategies as mentioned in Value.Able and charted in Skaffold?

    I’m not sure if you have done so already but it would be interesting to hear your past experiences and anything you learnt from that when starting/managing these new funds.

  11. HI Roger, did try to pre register, but the button ( SEND ) was not there.
    Not sure if its my out dated Browser ? Anyways thought id mention it.
    P.S Luv your stuff Jeff.

  12. Well it’s about time. I hope you also offer a service to have my currently poor performing portfolio handed over so that your fund management magic can be applied to exiting the less than perfect holdings and rolling it over so I can retire from my not always excellent hobby…

    • Hi Scott, sadly we don’t want to be employed to do that but I am sure we can help once you have extracted yourself. Indeed the motivation – retirement from investing – is a familiar one.

  13. This is very exciting news, well done Roger and team, and may I say, a team that seems to keep getting stronger!

    All the best

    Scott T

  14. Sorry Roger, I won’t be able to put any money into your fund. I put the last of my cash I had earmarked for shares into SWL today, just minutes before the announcement. I have the worst timing you could possibly imagine. No doubt the rating of SWL will change after this announcement so that it is no longer investment grade. This market is destroying me.

    • Hi Matt,

      A quality score reflects the probability of a company going under. I don’t currently believe SWL is going under. An A1 score doesn’t mean a business is immune from changes in the business cycle.

      • Hi Matty – that makes me feel sick when that happens. I had a similar experience yesterday afternoon when I bought back into Acrux (ACR), thinking that they might be due to release some good news on their patent applications, or news on the European launch and US regulatory review of Recuvyra, or even further news on their mystery product concept that is complementary to Axiron… I bought ACR in the low $4.60s. Literally 5 minutes later, they released their “Underarm Administration Patent Application Update” announcement and the SP immediately dived down about 15%. Talk about timing!!

        This morning ACR dropped further, bottoming at $3.80, before rising (to about $4.24, so far, at 3pm EST) up 4% from yesterday’s close, and about 12% up from today’s low. I’m only 8% down on ACR now, so things looked a lot worse at market close yesterday than they do now.

        I also hold SWL, and I’m almost 42% down on that holding now, since they’ve dropped back to $1.01 this afternoon. I’m still deciding on an appropriate course of action for that holding. I thought yesterday’s mini-bounce was encouraging, but today just re-inforces that stocks that issue big profit-warnings usually drop for a while, not just a day. It might be a tax-loss stock for me. I’ve got a lot of capital gains to offset… Lower Qld government infrastructure spending is just one of the factors that may well impact SWL’s profitability in future years. Many things to consider there…

  15. Had a look at David’s credentials and see he was with Hunter Hall for 10 years. Looking at Hunter Hall’s VGT fund, 5 Years ago (1/1/2007) the unit price was 2.94. 1/1/2012, when David was still there, it was 1.81. I know we’ve had a GFC, but is that reasonable performance ?

    • I think if you look under the hood you will find each individual is responsible for individual stocks and portions of the portfolio. I have known David for more than a while and his stock picking ability is not up for contention in our book.

    • Bruce that is actually not a bad performance considering Hunter Hall invests in global unhedged (the exchange rate worked against them in that time) and riskier local stocks and do not hug indexes.

      So Rog any LIC plans?

  16. Roger,
    This is great, I am excited and am preparing to break the piggy bank. Best of luck.

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