Performance to 30 November 2014
We have witnessed a lot of volatility in the Australian share market over the the first five months of the 2014/2015 financial year.
Over that period the S&P/ASX All Ordinaries Accumulation Index, which assumes reinvestment of dividends, has recorded a positive return of 0.3 per cent. Pleasingly, investors in both Montgomery Funds have recorded a return of 6.6 per cent, after expenses.
The Montgomery [Private] Fund celebrates its fourth anniversary in a few weeks and in the period between inception – 23 December 2010 and 30 November 2014 – The Fund has exceeded its benchmark, the S&P/ASX 200 Industrials Accumulation Index, by 5.79 per cent per annum, after expenses.
Meanwhile, The Montgomery Fund has beaten its benchmark, the S&P/ASX All Ordinaries Accumulation Index, in the period between inception – 17 August 2012 and 30 November 2014 – by an annualised 5.64 per cent after expenses.
Investors who either do not have the time or the inclination to follow the share market so closely, particularly during these volatile times, may want to consider outsourcing some of the management of their funds to Montgomery Investment Management.
To learn more about our funds, please click here, or contact me, David Buckland, on 02-8046 5000 or at dbuckland@montinvest.com
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.
matthew russo
:
Hi Roger
How do you get the chart for the accumulation indices now days?
Regards
Roger Montgomery
:
Hi Matthew, hopefully you received our email with the link.
peter stroud
:
Thanks Roger, I was not aware that distributions were included.
Nick Oddy
:
Hi team, great set of results and as I joined the Montgomery fund within a month of inception I’m a very happy investor! I was wondering if the there were any aspirations to build a global fund down the pipeline?
Roger Montgomery
:
Hi Nick,
We’ll be steam of 11 people in January so for the moment we are focused on delivering outstanding returns through The Montgomery Fund and The Montgomery [Private] Fund. When we have the resources to branch out, we know there is an edge we can bring to the landscape and will let you know.
Paul Audcent
:
Running any business enterprise can be fraught with hazard but the team behind Roger’s Funds have shown exemplary management skillls, so on behalf of we, their clients thank you for your hard work. Happy Christmas.
Roger Montgomery
:
Thanks for the encouraging words Paul.
minh nguyen
:
Can somebody show me how to work out the total return percentages of 50.31% and 55.42% ? I can understand the % return for the 200 ASX industrial and ASX 300.accumulation index.
Roger Montgomery
:
Hi Minh,
Sure. If you understand the returns for the accumulation indices, the returns for the fund are the same. They both assume reinvestment of distributions and so represent a Total Return.
Jeff Burnett
:
May I commend both David and Tim in their controlled and intelligent explanation to those somewhat naïve callers on YMYC. There has been no obfuscation on your part.
Keep up the good work at the fund and on TV.
From a contented investor.
Jeff
Roger Montgomery
:
Thanks Jeff.
Anil Janmohammad
:
I second that!
Anil Janmohammad
:
Well done again!
A couple of questions/comments:
– For the retail fund, is performance benchmark the All Ordinaries or the ASX 300 accumulation index? The text refers to the All Ords whereas the table refers to ASX 300.
– I understand the retail fund’s performance fee is based on 6 monthly performance to 30 Jun and 30 Dec. It would be good to include in your table how the funds is perform against its benchmarks in the current 6 month period (i.e. From 1 July till 30 Nov).
Roger Montgomery
:
Good suggestions Anil. Obviously all investors are receiving that information and we can post it here too. And yes in all cases we use the accumulation indices.
Anil Janmohammad
:
Sorry my earlier question may not have been clear. I understand that performance is benchmarked against the Accumulation index but I wanted to clarify which one? Is it the All Ordinaries Accumulation index or the ASX 300 Accumulation index?
Also, as an investor in the Montgomery Fund through AMP’s North platform, how do I receive the information you referred to?
Thanks
Roger Montgomery
:
Hi Anil,
OK. I understand. Give Scott Phillips a call on Monday on (02) 9692 5700
peter stroud
:
From the figures supplied, I would have thought the increase in the retail fund would be 37.3% and for the private fund, 31.6%.
How do you calculate your figures to give in excess of 50% increases? I’m obviously missing something.
Thanks
Roger Montgomery
:
Hi Peter,
Yes you have missed something – you have left out the distributions that have been paid out of the fund!
We are benchmarked against the accumulation index (which included the reinvestment of dividends) and so the figures to compare are the total return figures for The Fund which include distributions from The Fund reinvested. As the figures are calculated externally and independently by the administrator of The Fund, they have been approved and are correct.