Minimum initial investment:
$25,000

Small, intense with huge potential.
We believe in the power of small companies.

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. 

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Overview

Investment Strategy

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 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.

Why invest?

  • Access to 30 to 50 high quality, undervalued, Australian and NZ small and emerging companies with strong growth potential
  • 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
  • Investments can be added to or withdrawn daily (on Sydney business days)

Fund Profile

Number of holdings 30-50
Style Growth & Value
Benchmark S&P/ASX Small Ordinaries Accumulation Index
Fund fact sheet Download

Investment Manager

Montgomery Lucent, a joint venture between Lucent Capital Partners and Montgomery Investment Management, is the investment manager. Lucent Capital Partners is owned by its founders Gary Rollo and Dominic Rose.

About the fund See all videos

 

In this video interview with LiveWire, Gary Rollo explains our approach to investing in the small caps end of the market. He explains what types of growth companies we seek to own.

 

How does the Montgomery small caps team find attractive investment opportunities? In this short video we look at three high conviction holdings in the portfolio and discuss the investment theme at play and our view on the valuation and potential upside.

Performance

Comparative Returns Since Inception to 30/06/2021 (After all fees)

PERFORMANCE CHART
LATEST UNIT PRICE
FUND PERFORMANCE
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],["31\/08\/2020",118540,99511],["30\/09\/2020",115970,96709],["31\/10\/2020",114720,97150],["30\/11\/2020",121740,107130],["31\/12\/2020",126180,110082],["31\/01\/2021",124820,109804],["28\/02\/2021",130450,111504],["31\/03\/2021",130180,112380],["30\/04\/2021",139770,117976],["31\/05\/2021",142100,118291],["30\/06\/2021",149040,121929]]

Most Recent Unit Price* SEE HISTORY

Buy
1.4907
Redeem
1.4818
Mid
1.4862

*this is a forward pricing fund, the price you receive is based on close of market prices.

Fund Performance

49.04%
Montgomery Small Companies Fund
21.93%
S&P/ASX Small Ordinaries Accum. Index
27.11%
Out/Under Performance
  Montgomery Small Companies Fund

S&P/ASX Small Ordinaries Accum. Index

Out/Under Performance
1 month 4.88% 3.08% 1.80%
3 months 14.49% 8.50% 5.99%
6 months  18.12% 10.76% 7.36%
12 months  43.82% 33.23% 10.59%
Since inception 49.04% 21.93% 27.11%

Compound annual return 

25.18% 11.80% 13.38%
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 2021 
(Payments to be made 08/07/2021)
7.8912 cents  $1.4415

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 paper or online application form accompanying 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.

Investment Team

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.

Meet our people

Gary Rollo

Portfolio Manager
Read Bio +

Dominic Rose

Portfolio Manager
Read Bio +

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 on the Olivia123 platform
(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.

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.

Want to invest in your personal super instead?

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

Insights Subscribe to insights

June 29, 2021

oOh!Media screens as a cheap recovery story

By Dominic Rose

Economic reopening and cyclical reflation trades have rewarded investors handsomely over the past six months or so, particularly those offering immediate leverage to the stronger than expected demand recovery scenario currently playing out.
June 25, 2021

National Storage REIT: Resilience and Growth

By Gary Rollo

  Despite a challenging backdrop through COVID, National Storage REIT (ASX:NSR) has continued its strong trajectory into 2H FY21, supported by market conditions and ongoing portfolio optimisation. The self-storage sector has demonstrated its resilience through COVID and is benefitting from changes to how people live and work.

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.

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