Montgomery Small Companies Fund

Look past the big and obvious, look at the small enterprises. Then look closely at the leadership.
You’ll find opportunities that are set for expansion. Minimum initial investment: $25,000

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

Features

  • Invests in 30 to 50 high quality, undervalued, Australian and NZ small and emerging companies with strong growth potential
  • Aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over a rolling 5-year period, net of fees
  • Investments can be added to or withdrawn daily (on Sydney business days)

Benefits

  • Small companies have been a rewarding asset class for investment capital over the long term
  • Gives investors access to the next generation of small companies that have an exceptional ability to compound in value
  • A reduced management fee for early-investors who invest in the fund prior to 13 December 2019

A Special Offer

Investors who submit their applications prior to 13 December 2019 will receive a 0.25% management fee rebate quarterly. This discount will take the form of additional units in the fund and will apply until 31 December 2021. So, in short, investors joining in the first 12 weeks of the fund, will enjoy this rebate for approximately two years.  The management fee rebate will apply to your entire balance, so if you add funds through the period to December 2021, the calculation will be in your total balance, not just your initial investment. This special offer comes with no “lock in” meaning investors can redeem at any stage.

Learn How to Invest

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 31/10/2019 (After all fees)

Most Recent Unit Price*

See History
Buy
0.9996
Redeem
0.9936
Mid
0.9966

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

Fund Performance

  Montgomery Small Companies Fund

S&P/ASX Small Ordinaries Accum. Index

Out/Under Performance
1 month -0.68% -0.50% -0.18%
3 months N/A N/A N/A
Since inception -0.37% -0.46% 0.09%
Montgomery Small Companies Fund inception date is 20/09/2019. 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
[["date","Montgomery Small Companies Fund","S&P\/ASX Small Ordinaries Accum. Index"],["20\/09\/2019",100000,100000],["30\/09\/2019",100310,100040],["31\/10\/2019",99630,99538]]

The Fund established 20 September 2019 and the first distribution will be from 30 June 2020.

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

Units in the Montgomery Small Companies Fund (ARSN: 635 229 533) 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.

HOW TO INVEST

After accessing the Product Disclosure Statement and reading in full the investment objectives and risks of investing in the Montgomery Small Companies Fund:

1

Complete the online application form and ID verification online (approx. 10 minutes)

2

Submit the completed application form to the Administrator online

3

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.

NOT READY TO INVEST YET?

Download the fund information pack or if you would prefer to talk it over, call David Buckland or Dean Curnow on 02 8046 5000 to discuss the Montgomery Small Companies Fund in more detail.

Download the Fund Info Pack
02 8046 5000
David Buckland
Chief Executive Officer
david buckland
Dean Curnow
Account Manager
dean curnow

Have More Questions?

Frequently Asked Questions

  • 1. What is the minimum initial investment?

    A minimum initial investment of $25,000 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 $5,000, 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.

  • 2. What is the investment strategy of the Montgomery Small Companies Fund?

    Montgomery Lucent's investment philosophy is guided by fundamental research and analysis. Small market capitalisation companies are relatively under-researched and when markets misprice securities, this creates investment opportunities.

    Montgomery Lucent is seeking to build a portfolio of 30 to 50 high quality, undervalued small and emerging companies with strong growth potential. We are searching for companies likely to benefit from secular trends, industry change and with substantial competitive advantages.

  • 3. How is the portfolio constructed?

    The Fund’s portfolio is built using our “four buckets approach” consisting mainly of high-quality growth stocks along with stable compounders, complemented by cyclical growth companies and businesses in transition.

    We then use a “lifecycle approach” to sizing the positions depending on whether they are an early stage, emerging, developed or a core investment. This is a long-only portfolio. The Fund is designed to be as agile as the remarkable small companies that it invests in.

  • 4. How often is income paid?

    Any income distributions are paid semi-annually (as at 30 June and 31 December 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. There may be periods when net income could be negative and no distribution is made.

  • 5. Is the Montgomery Small Companies Fund suitable for me?

    Shares in the small capitalisation category can move up and down faster than other asset classes. Small capitalisation companies generally involve more risk because of their lower liquidity, their greater sensitivity to managements’ influence and their greater sensitivity to general economic conditions. For this reason, small cap vehicles like the Montgomery Small Companies Fund is only suitable for long-term investors.

  • 6. Can I invest via a platform?

    The Fund will be available on platforms over time, so please reach out to us for an update. Margin lenders will need to review the fund individually, so please contact your margin lender for an LVR.

  • 7. 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

  • 8. 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.

Have another question?

October 29, 2019

Why our Small Companies Fund sees value in IMDEX

By Dominic Rose

These days, I hear many commentators say it’s hard to find value in the market. But if you look hard enough, it’s still possible to find a gem. One of these is IMDEX (IMD), a global mining-tech company.
Read Article
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October 18, 2019

Why I think NextDC is undervalued

By Gary Rollo

What’s going on with the share price of data center provider NextDC (ASX: NXT)? Over the past year, it has massively underperformed other firms in both the tech and AREIT sectors.
Read Article
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October 16, 2019

Why IDP Education ticks all our boxes

By Dominic Rose

IDP Education (ASX: IEL) places international  students into Australia and other key English speaking destinations, while also administering English language proficiency tests. With defensive earnings, a long runway for growth and strong industry tailwinds, we think there’s plenty to like about this Australian-based global business. Exclusive Content This is exclusive content to subscribers on rogermontgomery. com.
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October 4, 2019

Why EML is a core holding in our Small Companies Fund

By Dominic Rose

We recently launched the Montgomery Small Companies Fund.   This new fund has invested in some truly dynamic businesses that we believe will deliver superior returns over the coming years.   One of those is EML Payments (ASX: EML). EML is one of our fund’s initial top five holdings.
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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Montgomery Global Fund

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Montgomery Alpha Plus Fund

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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.
New Fund

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

Unlisted from $50,000

Montgomery Alpha Plus Fund

Global
Aims to generate positive returns in both rising and falling markets. Invests in 80 to 180 global businesses expected to deliver above-average returns, while selling short a similar-sized portfolio expected to deliver below-average returns. Priced daily.
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 $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.