COMPARATIVE RETURNS TO 31/01/19 (AFTER ALL FEES)
Performance group
Investing with Montaka provides domestic and international clients the opportunity to benefit from both the value created by extraordinary businesses purchased at discounts to intrinsic value, as well as the decline in value of deteriorating businesses and industries. Greater capital protection may also be provided when markets turn down.
Typically 15-30 holdings in the equities of extraordinary global businesses are partially offset by 25-40 holdings in the equities of deteriorating global businesses.
The result of this combination is reduced Net Market Exposure and typically much less than 100 per cent. Owning $100 worth of extraordinary global businesses and offsetting this with $60 seeking to profit from deteriorating or flawed businesses and industries produces, for example, a net exposure of $40. For every $100 invested in the Montaka Global Fund, investors are exposed, in this example, to $40 of risk from the general movement of the market.
In addition to the diversification benefits of international companies and foreign currencies, should the market suddenly drop by a hypothetical 10 per cent, the above example produces an expected decline of approximately four per cent.
As a result of this decreased net market exposure, Montaka carries significantly less market risk compared to many of its typical equity fund peers. In fact, some investors might view Montaka as a substitute for fixed income bonds, rather than as an equity investment.
Global diversification benefits are derived from the expected geographical exposures of; 50-60 per cent US/Canada; 20-25 per cent Western Europe/ UK; 15-20 per cent Asia/Australia; and 0-5 per cent elsewhere.
Investments in Montaka Global Fund are by invitation only. To register your interest, please click the Request a discussion button.
Would you prefer to talk it over? Call David Buckland on 02 8046 5000.