Performance to 31 May 2016 and People

Performance to 31 May 2016 and People

The month of May 2016 saw the S&P/ ASX 300 Accumulation Index record its third consecutive positive month, putting on 3.14 per cent; and 11.67 per cent for the three months.  Despite this the market return so far this financial year – the eleven months to 31 May 2016 – is only up by 3.40 per cent.  And this assumes reinvestment of all dividends.

The Montgomery [Private] Fund and The Montgomery Fund recorded a return of 5.55 per cent and 5.88 per cent, respectively in May; and for the eleven months they are up by a pleasing 16.78 per cent and 15.08, respectively.

Both Funds continue to hold meaningful levels of cash – 28 per cent and 23 per cent, respectively at the end of May.  The opportunity set for those stocks that meets Montgomery’s requirements is somewhat limited and we remain patient.

The MSCI World Net Return Index in Australian Dollars enjoyed a substantial decline in the Australian Dollar and put on 5.93 per cent in May.  This benchmark, which also assumes reinvestment of dividends, has only risen by 3.35 per cent over the eleven months to 31 May 2016.  So it’s not just the Australian market “doing it tough”.

The Montgomery Global Fund was up 7.80 per cent in May and 3.95 per cent for the eleven months to 31 May 2016.  The Fund holds 21 per cent of the portfolio in cash or cash equivalents, and this is mostly in US Dollars.  The Montaka Global Fund was up 8.86 per cent in May and 8.90 per cent for the eleven months to 31 May 2016 and its net exposure to the market (“long” positions minus “short” positions) is around 48 per cent.

To avoid any confusion, the Montaka Global Access Fund, which feeds directly into the Montaka Global Fund, was launched in October 2015 and its first subscription was 1 November.  Its monthly returns are the same as the Montaka Global Fund.

All returns detailed above are net of fees.

Next subscription date

The next subscription date for the Montaka Global Access Fund is Friday 1 July 2016 and new subscribers should have their documents and funds in by the 23rd of June. Investors interested in the Montaka Global Access Fund, please click here for more information. Investors interested in The Montaka Global Fund, please contact Paul Mason, COO of Montgomery Global, at pmason@montinvest.com or on 02-8046 5015.

New team members

I would also like to take this opportunity to introduce our readers to two new members of our team.

Dean Curnow, who has had an eight-year career at CBA and Colonial First State, has been appointed Account Manager and will assist in servicing our clients and potential clients.  Dean has a Bachelor of Commerce for the University of Sydney.

Daniel Wu joins Montgomery Global as an Analyst reporting to Andy Macken.  After completing a Bachelor of Commerce (Distinction) and Bachelor of Laws from the University of Sydney, Daniel has spent the past three years gaining experience at UBS and Goldman Sachs.

MORE BY DavidINVEST WITH MONTGOMERY

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.