17
Aug
2020

Share

Montaka launches listed Montaka Global Extension Fund

I am delighted to announce the launch of the Montaka Global Extension Fund (Quoted Managed Hedge Fund) (ASX: MKAX). This new fund gives investors access to a portfolio of global growth opportunities through one online trade.

Our strategy is to invest in a long portfolio of businesses we believe will be structural winners in attractive markets. We will also look to profit from short selling underperforming businesses, and use capital protection measures against downside risks, when needed.

It’s now also much simpler to invest. As the new fund is an ASX-quoted managed fund, investors can easily buy and sell units through a stockbroker or share trading account with no minimum purchase, no entry or exit fees and no complicated application paperwork.

Another benefit of this structure is transparent, real-time pricing, which means transactions reflect the true value of the fund’s investments, unlike a listed investment company (LIC) or listed investment trust (LIT) which often trade at a discount.

These features make it easier for investors to access actively managed investments, weather market volatility and enhance the overall performance of their portfolios.

The fund also targets a distribution yield of 5% per annum, making it ideal for investors looking for income. Alternatively, distributions can be reinvested back in the fund to maximise compound wealth.

Identifying long-term opportunities in difficult times

Even though market volatility arising from COVID-19 is proving challenging for many investors, there are significant opportunities for investors to achieve long-term compounding of their wealth by backing the right businesses.

We believe it is possible to choose the best investments for long-term growth by understanding the key trends that will affect markets. These trends include:

  • digital transformation across enterprise and consumer markets
  • ageing populations that are increasing demand for healthcare and financial services products
  • rising wealth levels in Asia that are driving demand for wealth protection products.

These trends had already developed before the COVID-19 pandemic, but we’ve also seen some of them – like digital transformation – accelerate since the start of the crisis.

To target the companies most likely to deliver multi-decade compounding potential, our Sydney and New York teams conduct in-depth sector and market research. This allows us to continually build and pressure test hypotheses, connecting the dots between industries and between countries.

Individual stocks are subject to the same in-depth scrutiny. This includes building our own in-house financial and expectations models, conducting our own primary research, as well as leveraging proprietary external research. It is only after taking such steps that we nominate stocks we believe have a high probability of being long-term winners.

To illustrate this, our long portfolio currently includes companies we believe can thrive for years to come, such as Microsoft, Salesforce, SAP, Alibaba, Spotify, Apple, UnitedHealth, St James’s Place and insurance company Ping An.

How the Montaka Global Extension Fund works

By owning long-term winners in attractive markets – and avoiding or shorting underperforming companies in unattractive markets – we believe we can maximise our chance of achieving strong multi-decade compounding of our investors’ wealth, alongside our own.

Our strategy will typically see us hold 15 to 30 long positions, partially offset with between 10 and 40 short positions. We may also use capital protection tools, including purchasing exchange traded put options and exchange traded funds, when needed.

The fund typically operates with 130% exposure to its long portfolio and 30% exposure to its short portfolio, resulting in a net market exposure of around 100%.

Our business and its principals have invested in the Montaka Global Extension Fund, and our single largest client, an Australian private family office, has also invested over $20 million to seed the new fund.

Learn More

To learn more about our new fund, please visit the investor centre or look it up under ASX: MKAX and don’t forget talk to your financial adviser. You can also register to receive more information about the fund here: MKAX: Register Your Interest

You can learn more about active ETMFs and how they differ from LIC and LIT here.

The issuer of units in Montaka Global Extension Fund (Quoted Managed Hedge Fund) (ARSN: 639 565 807) is the Fund’s responsible entity Perpetual Trust Services Limited ACN 000 142 049 (AFSL 236648). You should read the Product Disclosure Statement (PDS) before deciding to acquire the product. Copies of the PDS are available from MGIM Pty Ltd (02) 8046 5000 or at the MKAX Investor Centre.

Before making any decision to make or hold any investment in the Fund you should consider the PDS in full. The information provided does not consider your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided and consider seeking advice from a financial advisor if necessary. You should not base an investment decision simply on past performance. Past performance is not a reliable indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall.

Our Funds

The Montgomery Fund

  • AUSTRALIA/NZ
  • Concentrated high conviction equities
  • From $25,000
Learn More

Montgomery Global Fund

  • GLOBAL
  • Concentrated high conviction equities
  • From $25,000
Learn More

Montaka Global Access Fund

  • GLOBAL
  • Access long/short global equity portfolio
  • From $50,000
Learn More

Montgomery Global Equities Fund (ASX:MOGL)

  • GLOBAL
  • Concentrated high conviction equities
  • No minimum investment - see your broker limits
Learn More

Montgomery Small Companies Fund

  • AUSTRALIA/NZ
  • Concentrated high conviction equities
  • From $25,000
Learn More
Close

Our Funds

Concentrated High Conviction Equities

Listed

Montgomery Global Equities Fund (ASX:MOGL)

Global
Available on the ASX as an Exchange Traded Managed Fund, invests in 15 to 30 quality global businesses for long-term capital growth with a target distribution yield of 4.5% per annum. Mirrors the strategy of the Montgomery Global Fund.
Unlisted From $25,000

Montgomery Global Fund

Global
Invests in 15 to 30 quality global businesses for long-term capital growth. Priced daily. Mirrors the strategy of the Montgomery Global Equities Fund (ASX:MOGL).
Unlisted from $25,000

The Montgomery Fund

Australia/NZ
Aims to provide long-term growth and income by investing in 20 to 40 high-quality Australian and New Zealand businesses trading at attractive valuations. Priced daily.
UNLISTED FROM $25,000

Montgomery Small Companies Fund

Australia/NZ
Aims to provide long-term growth by investing in 30 to 50 high quality, undervalued, Australian and NZ small and emerging companies with strong growth potential. Priced daily.
Unlisted from $1 Million

The Montgomery [Private] Fund

Australia/NZ
Seeks to deliver absolute returns from a portfolio of high-quality Australian and New Zealand businesses. Capital preservation is paramount. By invitation only.

Alternate Equity Strategies

New Fund

Montaka Global Extension Fund (ASX: MKAX)

GLOBAL
An ASX-quoted managed fund, typically, the Fund seeks to hold 15 to 30 long positions and partially offsets these with 10 to 40 short positions, operating with 130% exposure to its long portfolio and 30% exposure to its short portfolio, resulting in a net market exposure of around 100%. Features a target distribution yield of 5% per annum.
Unlisted from $50,000

Montaka Global Access Fund

Global
Aims to generate materially higher risk-adjusted returns, net of fees, than is generally available in the equities market over the medium term. Priced monthly. Provides retail investors access to the Montaka Global Fund.
Unlisted from $1million

Montaka Global 130/30 Fund

Global
Provides the opportunity to benefit from both the gains of extraordinary businesses and the declines of deteriorating businesses through a global equity active extension strategy, which has the potential to significantly outperform the broader equities market over time. Seeks to generate double-digit annual average returns, net of fees. Daily priced.
Unlisted From $1 Million

Montaka Global Fund

Global
Aims to generate materially higher risk-adjusted returns, net of fees, than is generally available in the equities market over the medium term. By invitation only.