Gary Rollo joins Scott Phillips to share insight into the investment philosophy of the Montgomery Small Companies Fund. Gary identifies why they are looking for companies or sectors that are going through change to harness the journey of the business going from small to bigger to big.
Investing in small cap resources – the reopening of China is having a positive impact on the resources sector, specifically copper. The Montgomery Small Companies Fund is currently overweight industrial metals and in this video Gary discusses three stocks and three lithium producers with bright prospects.
*this is a forward pricing fund, the price you receive is based on close of market prices.
|Montgomery Small Companies Fund||
S&P/ASX Small Ordinaries Accum. Index
|3 years (p.a.)||4.21%||3.00%||1.21%|
Compound annual return
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.
|Distribution per unit||Reinvestment price|
|June 2023||0.7777 cents||$1.1276|
|June 2022||2.6168 cents||$1.0066|
|June 2021||7.8912 cents||$1.4415|
|June 2020||0.00 cents|
You should read the Product Disclosure Statement (PDS) before deciding to acquire the product.
The issuer of units in Montgomery Small Companies Fund (ARSN 635 229 533) (Fund) is the Fund’s responsible entity Fundhost Limited (ABN 69 092 517 087) (AFSL 233045). The Fund’s investment manager is Montgomery Lucent Investment Management Pty Limited (ABN 58 635 052 176, Authorised Representative No. 001277163). Copies of the PDS and Target Market Definition (TMD) are available to download from this page and at https://fundhost.com.au/
An investment in the Fund must be through a valid paper or online application form accompanying the PDS. Before making any decision to make or hold any investment in the Fund you should consider the PDS and TMD in full.
The information provided 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 any information provided and consider seeking advice from a financial advisor if necessary.
You should not base an investment decision simply on past performance. Past performance is not an indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall.
To give our clients access to the potential growth small companies offer, Montgomery formed a partnership with a specialist small companies investment team. Gary Rollo and Dominic Rose have a long history of analysing and investing in small companies.
Gary served as an equity analyst for Morgan Stanley and JP Morgan in London, focusing on emerging stocks in the European technology sector. His analytical skills grew from his time in data modelling stealth fighter jet performance, whilst working at the UK’s Defence Evaluation and Research Agency.
Dominic spent his career working with small-cap equities in Australia, first as a broker, then as a lead researcher, then as a portfolio manager. He led Emerging Companies Research at Deutsche Bank and was Head of Research at Fosters Stockbroking.
Gary and Dominic lead the daily management of the Fund.
Master of Engineering with First Class Honours (Aeronautical Engineering)
Gary is the Portfolio Manager of the Montgomery Small Companies Fund.
Gary joined Montgomery in August 2019 after spending three years at MHOR Asset Management in Sydney as a Founder and Portfolio Manager. Prior to this, Gary was a Portfolio Manager at Renaissance Asset Manager in Sydney for six years. Before moving to Australia, Gary spent five years in London running Morgan Stanley’s Technology Sector Equity Research Team, as well as two years covering technology companies for JP Morgan. Gary’s technology industry experience was gained at Arthur Anderson in London, where he worked as a senior consultant.
Gary holds a Master of Engineering with First Class Honours in Aeronautical Engineering from the University of Glasgow in Scotland. During his tertiary studies, Gary was placed at the UK’s Defence Evaluation and Research Agency (DERA) where he worked on computer simulation models for aircraft design projects. Gary also qualified as a Chartered Accountant in 2000.
Bachelor of Economics, Master of Business (Accounting and Finance)
Dominic is the Portfolio Manager of the Montgomery Small Companies Fund.
Dominic joined Montgomery in August 2019 after spending thirteen years specialising in smaller companies in portfolio management and equities research. Most recently, Dominic was a Portfolio Manager and Senior Research Analyst at MHOR Asset Management in Sydney for three years. Prior to this, he ran Deutsche Bank’s Small Caps Equity Research Team in Sydney for six years. He was also previously Head of Research at Foster Stockbroking.
Dominic holds a Bachelor of Economics and Master of Business (Accounting and Finance) from The University of Sydney.
After accessing the Product Disclosure Statement and reading in full the investment objectives and risks of investing in the Montgomery Small Companies Fund:
Complete the online application form and ID verification online on the Olivia123 platform
(approx. 10 minutes)
Submit the completed application form to the Administrator online
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.
If you wish to make an additional investment (top-up) an existing investment in the Montgomery Small Companies Fund, please see the instructions here.
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.
Our partnership with industry-leading superannuation provider, netwealth, can help.
In this week’s video insight I joined David Buckland to dive into the recent performance of the Montgomery Small Companies Fund. As the reporting season concludes, the Fund has delivered 11.19 per cent for the three months to 31 August. This is an outperformance of 8.97 per cent compared to its benchmark the S&P/ ASX Small Ordinaries Accumulation Index. The outperformance can be attributed to several key stocks in the Fund’s portfolio, particularly Megaport (ASX:MP1), Audinate (ASX:AD8), and Aussie Broadband (ASX:ABB), all of which have exhibited strong growth and management excellence.
The Fund has a long-term objective and is suitable for those investors willing to assume high risk while seeking capital growth. Statistically, the major share markets produce a negative investment return, on average, every five years (or less) and investors must take the potential for capital loss into consideration. You can learn more in the Target Market Determination (TMD) here.
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.
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.
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.
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.
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.
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.
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:
You can make a form-free additional investment via either BPAY or EFT. Find the full instructions here.
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.