13
Aug
2020

Share

Understanding ASX-quoted managed funds

ASX-quoted managed funds are becoming increasingly popular among investors looking for a simpler and more transparent way to buy into diversified portfolios.

These funds allow investors to easily buy and sell units (shares) via the Australian Securities Exchange (ASX). The benefit is that there is no minimum purchase level (other than brokerage limits), no entry or exit fees and no complicated application paperwork.

These funds have been around since 2014. They combine elements of mutual funds and exchange traded funds, including quarterly reporting, the flexibility to be traded throughout the day, greater tax efficiency and net asset value-based trading. This allows them to retain both efficiency and portfolio confidentiality.

A key benefit of the ASX-quoted managed fund structure is transparent, real-time pricing. This means transactions reflect the genuine value of the fund’s investments, unlike more traditional listed investment company (LIC) or listed investment trust (LIT) structures.

The reason for this is that investors who want to sell their shares in a LIC or LIT on the ASX need a buyer. This can – and often does – result in LIC and LIT shares being sold at a discount to the true value of the fund’s net tangible assets (NTAs) because of a lack of demand. It can also lead to shares trading at a higher price than the fund’s true value, if demand is high.

The open-ended nature of ASX-quoted managed funds means they use the stock exchange to sell new units to investors or buy back units from investors who want to sell. The trading price of the units reflects, or is very close to, the true value of the fund’s underlying NTA.

To achieve this, the fund manager publishes an indicative net asset value (iNAV) that is constantly updated throughout the ASX trading day. The fund manager also appoints an agency market maker to set a price – usually one cent wide of the iNAV – and provides liquidity by buying or selling units on the fund’s behalf to satisfy investor supply and demand. 

Another alternative for investors is an unlisted fund. These offer many of the benefits of an ASX-quoted managed fund, but units can only be bought and sold through the fund manager by filling in an application form. Unlisted funds will also often have a minimum initial investment and may require investors to invest for a certain period.

To learn more about which type of fund is right for you, talk to your financial adviser.

We are 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. You can also register to receive more information about the fund here: MKAX: Register Your Interest

 

 

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.