Boutique equity manager Montgomery Investment Management is riding the wave of popularity for global exchange-traded products (ETP), particularly as SMSFs continue to fuel exchange-traded fund (ETF) growth.
The Montgomery Global Equities Fund was listed on the Australian Securities Exchange on 20 December 2017 and since inception its unit price has grown 8 per cent, outperforming the MSCI World Net Total Return Index by 4 per cent.
The manager referred to a recent Class report that found self-directed investors, such as SMSFs, are flocking to these products, and around one-third of ETF investors are SMSFs and more than half of all ETF assets are held by SMSFs.
Montgomery head of distribution Scott Phillips said the exchange-traded managed fund has performed extremely well.
“It shows our expertise in building a portfolio of undervalued, high-quality global companies whether they be large caps like Apple and Alibaba or smaller businesses like Insperity and St James’s Place,” Phillips said.
“By offering global stock diversity, price transparency, instant accessibility and solid returns, we think the fund offers investors the best of all worlds.
“So far, it’s proving very popular among financial advisers and SMSF investors.”
The performance of the fund mirrors the unlisted Montgomery Global Fund, which has generated a return of 44.5 per cent since July 2015, well ahead of the MSCI World Net Total Return Index, which has returned 30.97 per cent.
According to the manager, the fund has major advantages that have made it particularly attractive to investors, including SMSFs, seeking overseas exposure.
As an exchange-traded managed fund, investors are able to buy and sell units just like any other listed company and gain instant access to a diversified portfolio of high-quality businesses, the firm said.
The fund will pay distribution yields of 4.5 per cent a year, paid six-monthly.
