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

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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  • Investments can be added to or withdrawn daily (on Sydney business days)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 companies often under-researched by the sell-side brokers
  • The fund invests in the next generation of small and emerging companies that have an exceptional ability to compound in value

Inside the Montgomery Small Companies Fund

 

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 31/07/2020 (After all fees)

Most Recent Unit Price*

See History
Buy
1.1121
Redeem
1.1055
Mid
1.1088

*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 4.17% 1.39% 2.78%
3 months 17.24% 9.94% 7.30%
6 months  4.62% -10.95% 15.57%
Since inception 7.95% -7.21% 15.16%
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],["30\/11\/2019",100530,101087],["31\/12\/2019",98940,100799],["31\/01\/2020",103180,104201],["29\/02\/2020",94560,95156],["31\/03\/2020",78040,73862],["30\/04\/2020",92080,84404],["31\/05\/2020",102890,93339],["30\/06\/2020",103630,91518],["31\/07\/2020",107950,92794]]
June 2020

As at 30/06/2020, the fund is currently not in a taxable position to distribute for this financial year.

 

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.

Want to invest in your personal super instead?

Our partnership with industry-leading superannuation provider, NetWealth, can help.

Net Wealth

NOT READY TO INVEST YET?

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 Small Companies Fund in more detail.

Download the Fund Info Pack
02 8046 5000
David Buckland
Chief Executive Officer
david buckland
Toby Roberts
Account Manager – Private Clients
Toby Roberts Thumbnail

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 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. 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?

August 4, 2020

Uniti Wireless looks set to keep growing

By David Buckland

Since listing on the ASX in January 2019, the share price of broadband provider, Uniti Wireless (ASX:UWL) has enjoyed spectacular growth. From an IPO price of 25 cents, shares have rocketed to $1. 60, with the business growing via consolidation. The upcoming merger with OptiComm Limited (ASX:OPC) will make the business even stronger.
Read Article
Share
July 21, 2020

Nanosonics has a long runway for growth

By Dominic Rose

It’s a testing time for investors, with so many hitherto great businesses on their knees, and others looking well over-priced. But it’s still possible to identify structural winners with a long growth runway at reasonable prices. I think one of these could be Sydney-based medical device innovator, Nanosonics (ASX:NAN).
Read Article
Share
July 9, 2020

Macquarie Telecom: the data centre business is a real growth engine

By Gary Rollo

  Founded 27 years ago, Macquarie Telecom (ASX:MAQ) is an Australian data centre, cloud, cyber security and telecom company for mid to large business and government customers. Gary recently spoke with Chief Executive Officer, David Tudehope to discuss business and the investments the company’s making to extend its growth horizon.
Read Article
Share
June 30, 2020

How to minimise risk during recessions and economic crises

By Roger Montgomery

What’s the best way to minimise risk when investing during a recession or economic crisis?  Research by NYU’s Stern School of Business shows that one method could be to allocate funds according to where the company sits in its business lifecycle – which is the approach taken by the Montgomery Small Companies Fund.
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

  • AUSTRALIA/NZ
  • Concentrated high conviction equities
  • From $25,000
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Montgomery Global Fund

  • GLOBAL
  • Concentrated high conviction equities
  • From $25,000
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Montaka Global Access Fund

  • GLOBAL
  • Access long/short global equity portfolio
  • From $50,000
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Montgomery Global Equities Fund (ASX:MOGL)

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

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.