The Montgomery Global Equities Fund (Managed Fund) (ASX: MOGL) starts trading on the ASX today. Here is what you need to know about this fund:
- Fund name: Montgomery Global Equities (Managed Fund) ARSN 621 941 508
- ASX code: MOGL
- Initial price: $3.34 when trading commences
- Investment objective: The Fund aims to provide investors with long term capital growth as well as income distributions of at least 4.5% p.a. through a portfolio of quality global shares and to outperform the MSCI World Net Total Return Index, in Australian dollars over a rolling 5-year period, net of fees.
- Fund description: The Montgomery Global Equities Fund will typically invest in an all-cap portfolio of 15 to 30 high quality businesses listed on major global stock exchanges with a focus on North America,
Western Europe, the United Kingdom, Japan, Hong Kong, Singapore and Australia - Investment manager: Montgomery Global Investment Management led by chief investment officer Andrew Macken
- Management fees: 1.27% per annum
- Performance fees: 15.38% of the amount by which the Fund outperforms its benchmark (being the MSCI World Net Total Return Index, in Australian Dollars, after other fees and expenses have been deducted) and achieves positive performance.
- Fund manager holdings and performance: The new fund will share the same strategy as the unlisted Montgomery Global Fund, which was launched on 1 July 2015 and holds between 15 and 30 global companies such as Apple and Alibaba. As at the end of November 2017, the unlisted Montgomery Global Fund had achieved a compound annual total return (both capital growth and income) of 12.94% since inception compared to the the MSCI World Net Total return of 9.96% per annum over the same period.
Foolish takeaway
Overall, the fund manager appears to have a good track record but it must be noted that the general rise in the market over the last 2 years might have assisted in this performance. For now, I'd prefer to invest in the Magellan Global Trust (ASX: MGG) which is run by Magellan Financial Group Ltd (ASX: MFG). Over the last five years the unlisted Magellan Global Fund has returned an average of 18.53% per annum after fees.
