Frequently Asked Questions

• 1. Is this Fund suitable for me? – Target Market Determination (TMD)

  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.

• 2. 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.

• 3. 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.

• 4. 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.

• 5. 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.

• 6. 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.

• 7. 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.

• 8. 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

• 9. How do I increase my holding?

  You can make a form-free additional investment via either BPAY or EFT. Find the full instructions here.

• 10. 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.