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.
*this is a forward pricing fund, the price you receive is based on close of market prices.
|Montgomery Alpha Plus Fund||RBA Cash Rate||Out/Under Performance|
|3 years (p.a)||-2.77%||1.38%||-4.15%|
|Compounded annual return||-3.60%||1.40%||-5.00%|
|Distribution per unit||2.7120 cents|
|Distribution per unit||4.1753 cents|
|Distribution per unit||2.3046 cents|
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.
After accessing the Product Disclosure Statement and reading in full the investment objectives and risks of investing in the Montgomery Alpha Plus Fund:
Complete the online application form and ID verification online (approx. 10 minutes)
Scan the signed application form and send to the Administrator via email
Transfer the funds and an investment confirmation will be issued by the Administrator
For assistance completing the application form, you can speak directly with the Administrator, Fundhost Limited on 02 8223 5400.
Download the fund information pack or if you would prefer to talk it over, call David Buckland or Toby Roberts on 02 8046 5000 to discuss the Montgomery Alpha Plus Fund in more detail.
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.
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.
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.
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.
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.
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:
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.
We have a feature article in our Knowledge Centre on this topic, please visit our Insights area: Learn About Investing