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The power of compounding when rates are low


The power of compounding when rates are low

The new low interest rate world in which we find ourselves is strange. Why does it make sense that an investor should have to pay for the privilege of lending to the German government for 20 years, for example? And yet, the yield on German 20 year bunds is negative – effectively implying exactly this.


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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.

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


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  1. Hi

    I have heard references to Vivendi many many times, I have great respect for Montgomery and Co. Hoeverver :).

    What the new generation is listening to and how they consume is changing. Current music is created and distributed way differently. Soundcloud, di.fm streams latest dj mixes/music creations for free. The only thing one pays for is for the quality of stream.

    If my memory serves me well, Roger was talking about how movie yesterday will rise earnings due to The Beatle’s greatness. Yes, they are great, but in the same way, there are very few who listens to Beethoven, Beatles is yesterday.

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