THE MONTGOMERY FUND

THE MONTGOMERY FUND
ARSN 159 364 155 | APIR FHT0030AU
April 2015 INVESTMENT REPORT
ADDITIONAL INVESTMENTS
AND NEW INVESTORS
The Montgomery
Fund $167,066
02 8046 5000
ASX 300
Accumulation
Index $148,586
www.montinvest.com/tmf
office@montinvest.com
To make an additional investment in the Fund,
complete the Additional Investment Form on
page A13 of the Application Form, which can
be downloaded with the Product Disclosure
Statement from www.montinvest.com/tmf.
INDUSTRY
Information
Technology
10%
Telecommunications
Services
7%
Industrials
13%
Health Care
22%
QUALITY AND PERFORMANCE
Consumer
Discretionary
7%
B3
22%
Financials
41%
A1
19%
Top 50
25%
B1
3%
A3
14%
MARKET CAPITALISATION
A2
42%
Top 100 ex.
Top 50
34%
Outside Top
300
3%
Top 300 ex.
Top 100
38%
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FUND COMMENTARY
APPLICATION AND REDEMPTION PRICES* (at 30 April 2015)
(cum distribution)
After a buoyant start to the year, the two months to end April 2015 saw a more subdued
equity market, with the S&P/ASX300 Accumulation Index losing 1.7 per cent for the period.
In part this result reflected a continuing deterioration in the iron ore price, and the “chase for
yield” appearing to take a welcome rest. The large miners and big four banks represent a
large part of the benchmark index, and a lacklustre showing from these companies translates
into a lacklustre showing for the market overall.
The Montgomery Fund’s limited interest in these sectors helped it to deliver a somewhat better
result – a positive return of 0.66 per cent for the two months, for outperformance of 2.36 per
cent. While performance suffered due to the announcement in March of some disappointing
clinical trial results for Sirtex Limited, The Fund’s other investments generally performed well,
including a material contribution from iiNet Limited, which became the target of takeover
interest.
With equity prices remaining generally on the expensive side of fair value, we remain
cautious in our approach. We continue to look for opportunities, but it may be some time
before we see them in quantity.
Fund application price
$ 1.5142
Fund mid price
$ 1.5105**
Fund redemption price
$ 1.5067
*The Fund is forward-priced; you will receive the price struck subsequent to the receipt of your application/redemption request.
**The
**The
**The
**The
Montgomery
Montgomery
Montgomery
Montgomery
Fund
Fund
Fund
Fund
went
went
went
went
ex
ex
ex
ex
7.2834
0.9540
3.0949
1.4073
THE MONTGOMERY
FUND
S&P/ASX 300
ACCUM. INDEX
OUT/UNDER
PERFORMANCE
cents
cents
cents
cents
per
per
per
per
unit
unit
unit
unit
distribution
distribution
distribution
distribution
on
on
on
on
30
31
30
31
June 2013
December 2013
June 2014
December 2014
PORTFOLIO STRUCTURE
COMPONENT
%
$
Equities weighting
72.2%
$ 233.0m
Cash weighting
27.8%
$ 89.5m
TOP COMPLETED HOLDINGS* (TCH)
Q&P
SCORE
RETURN ON
EQUITY (%)
Challenger Ltd
A3
13.2
n/a
11.4
Henderson Group
A2
18.0
-8.4
17.1
CSL Ltd
A2
43.0
40.5
23.6
SEEK Ltd
A2
19.6
3.6
28.0
COMPANY NAME
PORTFOLIO PERFORMANCE (to 30 April 2015)
Historical unit prices available at
www.fundhost.com.au/investor/tmf
NET DEBT/
PRICE/
EQUITY (%) EARNINGS (X)
2 months
0.66%
-1.70%
2.36%
Westpac Banking Corp Ltd
A1
15.8
n/a
13.0
6 months
9.94%
7.12%
2.82%
Aust & NZ Banking Group Ltd
A2
15.9
n/a
12.9
15.83%
10.16%
5.67%
Ansell Ltd
B3
15.7
36.3
16.1
Burson Group Ltd
B3
20.0
64.4
25.9
Flexigroup Ltd
B3
15.8
n/a
11.2
Ramsay Health Care Ltd
B3
22.4
68.9
27.9
TCH AVERAGE
19.9
34.2
18.7
ASX 300 AVERAGE
15.2
61.4
18.0
12 months
2 years (p.a.)
13.86%
10.15%
3.71%
Since inception#
67.07%
48.59%
18.48%
Compound annual return
(since inception)#
# 17 August 2012
20.52%
15.49%
5.03%
*Top Completed Holdings are businesses we own but are not actively buying or selling at the time of writing.
Investment Manager Montgomery Investment Management Pty Ltd | ABN 73 139 161 701 | AFSL 354 564 | Suite 7.02, 45 Jones Street Ultimo NSW 2007 | 02 8046 5000 | www.montinvest.com
Responsible Entity Fundhost Limited | ABN 69 092 517 087 | AFSL 233 045 | PO Box N561 Grosvenor Place NSW 1219 | 02 8223 5400 | www.fundhost.com.au | admin@fundhost.com.au
| office@montinvest.com
# Portfolio Performance is calculated after fees and costs, including the Investment management fee and Performance fee, but excludes the buy/sell spread. All returns are on a pre-tax basis. This report was prepared by Montgomery Investment Management Pty Ltd, AFSL
No: 354564 ("Montgomery") the investment manager of The Montgomery Fund ("TMF"), ARSN 159 364 155. The Responsible Entity of The Fund is Fundhost Limited (ABN 69 092 517 087) (AFSL No: 233 045) ("Fundhost"). This document has been prepared for the
purpose of providing general information, without taking into account your particular objectives, financial circumstances or needs. You should obtain and consider a copy of the Product Disclosure Document ("PDS") relating to the Fund before making a decision to invest.
Available here: http://fundhost.com.au/investor/tmf. While the information in this document has been prepared with all reasonable care, neither Fundhost nor Montgomery makes any representation or warranty as to the accuracy or completeness of any statement in this
document including any forecasts. Neither Fundhost nor Montgomery guarantees the performance of the Fund or the repayment of any investor’s capital. To the extent permitted by law, neither Fundhost nor Montgomery, including their employees, consultants, advisers,
officers or authorised representatives, are liable for any loss or damage arising as a result of reliance placed on the contents of this report. Past performance is not indicative of future performance.
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