Montgomery Investment Management (Montgomery), through its partnership with Australian Eagle, is pleased to announce retail investors can now access the Australian Eagle Trust, Long Short Fund.
The Australian Eagle Trust, Long Short Fund (The Fund) is an open-ended, Australian-registered managed investment scheme with a minimum investment of $20,000. The objective of the Fund is to outperform the S&P/ASX 100 Accumulation Index over five years[1].
The Fund has demonstrated its ability to consistently outperform its benchmark over six years, delivering a net return to investors of 16.71%[2] p.a. compared to the benchmark of 9.29% p.a. since its inception in July 2016 through geopolitical events and disruptive market conditions.
The Fund offers retail clients access to an active long-short strategy that would ordinarily be difficult for individual investors to employ and enhanced potential for excess returns through short-selling techniques and leverage. The Fund uses an index-independent approach and seeks diversification by investing in 25 to 35 stocks in the long portfolio and 12 to 25 stocks in the short portfolio. The Fund is generally 150% long and 50% short with a net 100% long position.
Australian Eagle Trust, Long Short Fund performance
(to 31 December 2022 net of fees since inception, July 2016)
Total returns shown for the Australian Eagle Trust (ARSN 632 568 846) are net monthly returns calculated using exit prices after taking into account all of Australian Eagle Trust's ongoing fees as disclosed in the PDS and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is not indicative of future performance.
Fund Risks
Generally, the higher the expected return of an investment, the higher the expected risk. Traditionally listed shares have generally been considered to be more volatile (will experience greater fluctuations in value) than fixed income, while fixed income has generally been more volatile than cash. The Fund provides investors a leveraged investment in Australian shares by leveraging the long side of the portfolio through selling short shares that Australian Eagle considers may underperform the market. The use of leverage and short selling may increase the volatility of returns of this Fund and magnify potential gains or losses compared to just buying Australian shares. Please refer to Page 19 of the PDS to review the Fund risks.
Adding The Fund to the Montgomery product suite meets investors' increasing demand for proven portfolio growth and diversification sources. The Fund is highly rated by three Australian Rating companies, including a Lonsec Recommended rating, a Zenith Recommended rating and an SQM Research Outstanding 4.5 Star rating.
Lonsec considers The Fund’s investment approach robust and repeatable, and its effectiveness is proven over a long period. Lonsec views the strong co-tenure and investment team stability positively, commenting that there is a high level of alignment with end investors, particularly through co-investment by Sean Sequeira and Alan Kwan, and all team members are equity holders and share in business profits, including performance fees.
The team was also nominated for the 2022 Lonsec Emerging Manager of the Year.
Australian Eagle is a multi-award-winning investment manager. Most recently, Australian Eagle won the 2022 Financial Newswire and SQM Research Fund Manager of the Year Award for Australian Equities – Large Cap category for the Australian Eagle Trust, Long Short Fund.
The following factors have been summarised from the SQM rating which have influence on Australian Eagle receiving this award, including, the stability and experience of the investment team who have worked together for more than fifteen years. “The Fund has performed as one of the stronger long/short investment managers, performance in absolute, relative and risk-adjusted terms has been very strong since its inception six years ago, relative to the benchmark and, in particular, relative to peers. Drawdowns have, on average, been better than the benchmark and much better than the peer average.”
The Financial Newswire and SQM Research Fund Manager of the Year Award uses a methodology that focuses on growth-oriented funds with good risk-adjusted returns. The filtering process reduces the starting universe of over 10,000 funds and uses eight metrics including a manager’s ability to create risk-adjusted alpha, outperformance in both rising and falling markets, and those who consistently beat their benchmarks.
Roger Montgomery said: ‘I am personally very impressed with the calibre of the Australian Eagle investment team and what they can offer our clients. Sean Sequeira, the Chief Investment Officer and Alan Kwan, the Senior Portfolio Manager, are highly capable and experienced investors, with 31 years and 29 years of experience, respectively and they have a proven and successful track record in implementing the long-short extension strategy over multiple market cycles through disruptive market conditions.”
Sean Sequeira said: “We are delighted to be working with Roger and the team to help distribute our Long Short Fund. This product takes full advantage of our total research capabilities on both the long and short side, enabling us to use a broader toolkit to generate returns compared to long-only or more passive strategies. Together with the Montgomery team’s drive and reach, this will help us reach a broader investor base who can benefit from the opportunity to access the benefits of our proven investment process.”
[1] Out-performance of the S&P/ASX 100 Accumulation Index is not guaranteed.
[2] Figures quoted to 31 December 2022.
Learn more about the Australian Eagle Trust Long Short Fund below:
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IMPORTANT INFORMATION
This content has been prepared by Montgomery Investment Management Pty Ltd (ACN 139 161 701) (AFSL 354564). Montgomery has been appointed by Australian Eagle Asset Management as the distributor of the Australian Eagle Trust.
Australian Eagle is an authorised representative of both Montgomery and Alleron Investment Management Pty Limited (ABN 71 109 874 160, AFSL No. 278856) (Alleron).
The issuer of units in Australian Eagle Trust (ARSN 632 568 846) (Trust) is the Fund’s responsible entity The Trust Company (RE Services) Limited (ABN 45 003 278 831) (AFSL 235150), part of Perpetual Limited. Australian Eagle Asset Management Pty Limited (ABN 89 629 484 840) is the investment manager of the Trust.
The Product Disclosure Statement (PDS) contains all of the details of the offer. Copies of the PDS and Target Market Definition (TMD) are available from Montgomery Investment Management (02) 8046 5000 or at www.montinvest.com
An investment in the Trust 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 Trust you should consider the PDS and TMD in full.
This is general information only and is not intended to provide you with financial advice and has been prepared without taking 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. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital.
Lonsec Recommended rating
The rating issued 09/2022 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.
Zenith Recommended rating
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2022) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines
SQM Research Outstanding 4.5 Star rating
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.