When you invest in a managed fund, your money (together with all other investors’ monies) is gathered in the one place and invested in assets. Managed funds provide private investors with access to markets and strategies that rely on economies of scale. 

For the funds on this website, Montgomery is the investment manager. Montgomery uses its resources, experience and expertise to make the investment decisions.

We appointed an independent custodian (like National Australia Bank Limited) to hold the assets of the funds we manage.

What are the benefits of managed funds?

Managed funds clearly have their advantages. The main benefit of professionally managed funds is that they provide access to an investment that offers numerous investing opportunities that the individual investor would otherwise not have been able to access.

Additionally, the wide variety of managed funds available ensures that the personal requirements of each individual investor may be met. Whether high risk/high capital growth investments or the low risk investment that provides consistent income over a period of time, managed funds offer solutions for almost every investor.

Professional management 

Fund managers are experienced and qualified professionals who specialise in the selection and maintenance of investments. The manager maintains extensive contacts outside the firm and has access to detailed information, which together with in-house expertise, allow it to make informed timely decisions on behalf of investors.

Fund managers are in constant touch with the markets in which they invest, thus providing a particular advantage for investors wanting to invest in markets or sectors in which they have little or no experience.

Managing risks

All investments carry risk. Different strategies may carry different levels of risk, depending on the assets that make up the strategy. Assets with the highest long-term returns may also carry the highest level of short-term risk. You should always read the Product Disclosure Statement in full to understand the risks of investing in managed funds.

How are managed investment schemes taxed?

Investing in a registered managed investment scheme is likely to have tax consequences and you are strongly advised to seek professional tax advice.

Registered managed investment schemes do not pay tax on behalf of unit holders. Unit holders are assessed for tax on any income and capital gains generated by the fund they invest in.

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You can read this article from the ASX website for more information.