Montaka Global Fund

COMPARATIVE RETURNS TO 30/0918 (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.

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    Frequently Asked Questions

  1. How can I invest in the Fund?
    To invest in The Fund, use the application form accompanying the Montaka Global Fund Information Memorandum. The only way to invest in The Fund is via Electronic Fund Transfer (EFT) as detailed Section 5 of the Investment Memorandum. The minimum initial investment is A$1,000,000, however the Trustee has discretion to reduce this to A$500,000.
  2. Will this Fund pay distributions?
    The Fund should not be acquired with income in mind. While the Fund may pay distributions in the early years of its life, the Investment Manager expects that the Fund will ultimately discontinue the payment of distributions, with income and realized gains reinvested instead. The Montaka Global Offshore Fund, the Cayman Islands company into which the Montaka Global Fund will invest, will initially be classed as a Controlled Foreign Corporation (CFC) by the ATO and may pay annual distributions. In the future, however, we expect the Montaka Global Offshore Fund to be deemed a non-CFC by the ATO, following which distributions will likely cease. To be deemed a non-CFC by the ATO, the Montaka Global Offshore Fund requires greater investment by foreign investors than by Australian investors. It is the intention of the Investment Manager to pursue such a strategy in the future. For this reason, the Fund should not be acquired with income in mind as it is intended that future income and realized gains will be reinvested.
  3. Does the Fund seek to offer a significant level of capital preservation?
    If an insufficient number of individual company names are appealing on the “buy” side of the ledger, the Manager may consider the overall market ‘expensive’ and in an effort to preserve the capital value of the portfolio, may in fact hold no net exposure to the market. This means the portion of stocks on the “sell” side of the ledger may in fact be equal to the portion of stocks on the “buy” side of the portfolio.
The Montaka Global Fund will be available to wholesale investors, and is by invitation only, and will not be available for distribution to the general public. Montgomery Investment Management Pty Ltd (ACN 139 161 701) (AFSL: 354 564) (Montgomery Investment Management or MIM) is the trustee of the Montaka Global Fund. An investment in the Montaka Global Fund will only be available through a valid subscription agreement attached to the Information Memorandum. Before making any decision to make or hold any investment in the Montaka Global Fund you should consider the Information Memorandum in full. 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.