Latest Insights

July 14, 2020

Liquidity runs dry

By Christopher Demasi

When the stock market sold off dramatically in March this year the US Federal Reserve responded by pumping financial markets with liquidity for the next three months and the stock market rocketed. But the Fed’s role in financial markets has moderated recently and signals that share market investors should proceed with caution.
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July 14, 2020

Our Small Companies Fund shows the benefits of active management

By David Buckland

The Montgomery Small Companies Fund, which was launched in September 2019, recently hit a record high. Since inception to 30 June 2020 The Fund has returned 3. 63 per cent,  which compares very favourably to its benchmark, the S&P/ASX Small Ordinaries Accumulation Index outperforming it by 12. 11 per cent.
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July 13, 2020

The coffee can approach

By Lachlan MacKay

The coffee can investment approach is an important concept that illustrates a key factor in how we view prospective businesses. It was coined by famed advisor Robert Kirby, who discovered that one of his clients had been selectively acting on all his buy recommendations, putting away the stock certificates and ignoring any sell recommendations.
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July 13, 2020

Why investors have lost their taste for Treasury Wine Estates

By Stuart Jackson

You’d think that Australia’s global winemaker and distributor, Treasury Wine Estates (ASX:TWE), would be reasonably immune to the effects of the COVID-19 pandemic. But the owner of famous brands like Wolf Blass, Lindemans and Penfolds is also feeling the pinch, with its latest trading update pointing to a tough year ahead.
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July 2, 2020

Does Megaport have a bright future?

By Tim Kelley

Many readers will be familiar with the transformation being wrought in the information technology space by cloud computing. Where previously an enterprise would own and maintain all of its own computing infrastructure on-premises, increasingly, businesses are coming to view computing as a non-core activity that is best consumed as a service.
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July 1, 2020

Farewell fiscal 2020, hello fiscal 2021

By David Buckland

Twelve months back, who could have predicted the world would be in the state it’s currently in?  And yet, despite the pandemic-induced turmoil, some world markets are not that far from where they were a year ago.   Here’s a quick look at the year that was. The US Nasdaq Index continued to deliver a pull-up effect, appreciating 12.
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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.
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June 29, 2020

New investors take note: it may be time to take your profits

By Roger Montgomery

One of the rather surprising trends since the COVID-19 lockdown has been the new wave of first-time share market investors. Many have enjoyed huge gains since the March market rout – often by speculating on highly risky businesses. But the ensuing dislocation between share prices and economic reality tells me that some could get their fingers badly burnt.
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June 25, 2020

Nick Scali reports strong sales in May and June

By Roger Montgomery

As you may know, the furniture retailer, Nick Scali, is one of our holdings in the Montgomery Small Companies Fund and CEO Anthony Scali has just updated fund managers through a broker-arranged conference call.
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June 24, 2020

Codan goes from strength to strength

By Andreas Lundberg

If you’re a regular reader, you probably know that one of my favourite Australian companies is Codan Limited (ASX: CDA), which makes communications, metal detection, and mining technology. Its share price has doubled in the past year, and its latest trading update gives me more reasons to be pleased we hold it in our funds.
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June 23, 2020

Why we are reducing risk by focusing on quality and size

By Roger Montgomery

Since the COVID-19 induced market low, our fund has put a substantial proportion of our cash to work.   But we’ve been very selective about the companies we bought. We added to our holdings in Macquarie Financial Group, Westpac, Commonwealth Bank, and Scentre Group.  And we are building additional positions in undisclosed stocks.
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June 23, 2020

Why I’m not a fan of the Fed buying corporate bonds

By Roger Montgomery

In March, the U. S. Federal Reserve moved to prevent a coronavirus-induced downturn by promising to set up an entity to buy corporate bonds and ETFs, including junk bonds and junk bond ETFs. My concern is that the Fed has simply created another time bomb that future generations will have to defuse.
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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.