Montgomery Alpha Plus Fund

The Fund is now closed.

Are you an Adviser? Please visit our adviser area for fund details.

Notice of Closure

After careful consideration it has decided it is in the best interest of investors to terminate and wind up the Montgomery Alpha Plus Fund.

 The Fund is terminated pursuant to Fundhost's power under the constitution to specify a date of termination (see clause 3.4(a)) and the Corporations Act (see section 601NA).

The effective date of termination is 21 April 2020.

As a result of our decision to close the Fund, we are freezing existing redemption requests, and we are not accepting any new redemption requests. We are also no longer accepting any applications, or additional contributions to acquire units in the Fund.

We anticipate distributing the vast majority of the proceeds to investors by mid-May, and the remaining balance by the end of May.

For assistance you can speak directly with the Administrator, Fundhost Limited on 02 8223 5400.

Our Approach

Montgomery is focused on the ownership of high quality businesses – that can be purchased at attractive valuations – and generating superior returns over the long term. We are value investors committed to preserving and growing your capital. Read more about our investment approach.

Find Out More

FUND PERFORMANCE AND PRICING

Comparative Returns Since Inception to 30/04/2020

-25.63%
Montgomery Alpha Plus Fund
5.08%
RBA Cash Rate
-30.71%
Out/Under Performance

Most Recent Unit Price*

See history
Buy
0.6254
Redeem
0.6254
Mid
0.6254

*this is a forward pricing fund, the price you receive is based on close of market prices.

Fund Performance

Comparative Returns Since Inception to 30/04/2020

  Montgomery Alpha Plus Fund RBA Cash Rate Out/Under Performance
1 month -6.14% 0.02% -6.16%
3 months -15.44% 0.10% -15.54%
6 months -20.15% 0.29% -20.44%
1 year -15.54% 0.84% -16.38%
3 years (p.a) -7.57% 1.29% -8.86%
Since inception -25.63% 5.08% -30.71%
Compounded annual return -7.60% 1.33% -8.93%
The Montgomery Alpha Plus Fund inception date is 01/08/2016. Performance is net of fees and assumes distributions are reinvested, which is industry standard. Past performance is not an indicator of future performance.
Performance Chart
Income Distribution
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June 2019  
Distribution per unit 2.7120 cents
Reinvestment price $0.8296
June 2018  
Distribution per unit 4.1753 cents
Reinvestment price $0.8586
June 2017  
Distribution per unit 2.3046 cents
Reinvestment price $0.9011

You should read the Product Disclosure Statement (PDS) before deciding to acquire the product.

Units in the Montgomery Alpha Plus Fund (ARSN: 613 229 904) are issued by the Fund’s responsible entity Fundhost Limited (ABN 69 092 517 087) (AFSL: 233045). Copies of the PDS are available by downloading them from this web page. Before making any decision to make or hold any investment in the Fund you should consider the PDS in full. An investment in the Fund must be through a valid application form attached to the PDS. You should not base an investment decision simply on past performance. Past performance is not an indicator of future performance. The investment returns of the Fund are not guaranteed, and so the value of an investment may rise or fall.

The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon this information and consider seeking advice from a licensed financial advisor if necessary.

TO DISCUSS THE CLOSING OF THE FUND

For assistance you can speak directly with the Administrator, Fundhost Limited on 02 8223 5400, or call David Buckland or Toby Roberts at Montgomery on 02 8046 5000.

02 8046 5000
David Buckland
Chief Executive Officer
david buckland
Toby Roberts
Account Manager – Private Clients
Toby Roberts Thumbnail

Frequently Asked Questions

  • 1. What is the investment approach of the Montgomery Alpha Plus Fund?

    The Montgomery Alpha Plus Fund invests in securities listed on Australian and international stock exchanges. The Fund buys securities (Long positions) and also borrows securities to sell (Short positions) in order to benefit from both rising and falling share prices, and to manage portfolio risk.

    The Fund will typically aim to hold equal values of Long and Short positions across two portfolios. Long positions will be held in the “Long Portfolio” and Short positions in the “Short Portfolio.”

    In constructing the portfolios this way The Fund aims to reduce “market risk”, which is the risk that equity markets as a whole may rise or fall, independent of the investment merits of individual stocks. The Fund aims to profit from Montgomery consistently applying a systematic process to identify and buy securities that will do relatively well and to identify and sell securities that will do relatively poorly.

  • 2. What does a “long position” means?

    A “long position” in a security, such as a share, or equivalently to be long in a security, means the holder of the position owns the security and will profit if the price of the security goes up. Going Long is the more conventional practice of investing and is contrasted with going Short.

  • 3. What does a “short position” mean?

    Establishing a “short position” in a security, such as a share, is seeking to profit from the price of that security falling. The process of “shorting” is quite simple. The Fund borrows shares from a trader (in this case the Prime Broker) who charges a fee for the service. The Fund then sells the shares to another investor, receiving cash. The Fund expects to buy the securities back more cheaply when the price falls, returning them to their rightful owner (the Prime Broker). The difference between the two prices (after fees) is the profit.

  • 4. What is the minimum initial investment?

    A minimum initial investment of $50,000 is required.

    You may also arrange to add to your initial investment through a lump sum additional investment, for which there is a minimum of $10,000, or direct debit monthly savings plan, requiring a minimum investment of $500 per month. This is processed on the 15th of each month or the next business day.

  • 5. How often is income paid?

    Any income distributions are paid annually (as at 30 June each year) and can be reinvested in full or paid out entirely to the financial institution account nominated on your application form. We distribute all taxable income to investors each year, including any taxable capital gains. Distributions may also carry imputation or other tax credits.

    The Fund’s income may vary considerably from year to year, and there may be periods when net income could be negative and no distribution is made. An investment in The Fund may therefore not be suitable for investors seeking a regular income stream for financial or tax planning purposes.

  • 6. How can I see my unit balance and investment value online?

    Our administrator, Fundhost, has a portal that investors can access to see their balance and download all statements. Once invested, you will be given registration details. 

    Access the Fundhost client log in here
    Login

  • 7. How do I redeem my funds?

    To redeem your holding, simply fill out the Redemption Request form and have it signed by the authorised signatories on the account. Please see the manage my investments section.

    If Fundhost are paying to a bank account they have on file, they can accept a faxed or scanned copy of the redemption instruction.

    In normal circumstances, redemptions are processed daily, with funds generally received back to the investor within 2 business days. The cut off to receive your redemption request to receive that days price is 4pm Sydney time. Refer to the PDS for more information.

  • 8. How does a market neutral fund operate?

    We have a feature article in our Knowledge Centre on this topic, please visit our Insights area: Learn About Investing

Have another question?

 

Latest Fund Insights

April 7, 2020

What is the recent market strength telling us?

By Tim Kelley

If the recent market rally has taken you by surprise, you’re not alone.   Since hitting a low around 23 March, the S&P/ASX200 Index has rebounded almost 20 per cent, despite a steady flow of grim health and economic news coming out of Europe and the US.
Read Article
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April 3, 2020

Where to next?

By Roger Montgomery

To describe recent market volatility as high is to understate the facts.   Since the peak on February 19, the US market has registered the most rapid sell-off ever, its biggest three-day gain since the 1930s, the biggest one-day percentage gain since 1933 and the second ever largest one-day fall.
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March 23, 2020

How should you think about cash?

By Tim Kelley

One of the biggest questions facing equity investors today is when and how to deploy surplus cash that they may have available. This is a question we have studied extensively in recent weeks, and while we can offer no definitive answers, some tentative conclusions may help to inform this decision.
Read Article
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March 7, 2020

Panic or pandemic?

By Roger Montgomery

There’s the Coronavirus pandemic and then there’s the associated panic. Both will have an impact on near term investment returns and as I write this note, the ASX200 price index has swung 13 per cent down from its January high. But the pandemic and the panic will also provide level-headed investors with an opportunity.
Read Article
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THINK FOR YOURSELF.
WE DO.

At Montgomery, we’re independent thinkers who look past market noise to focus on the long-term prospects for companies. We don’t follow the herd. Subscribe now to receive our articles, whitepapers and insights.

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Have you considered our other funds?

The Montgomery Fund

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  • From $25,000
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Montaka Global Access Fund

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Montgomery Global Equities Fund (ASX:MOGL)

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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.