Montaka MKAX Announces 11.10 Cents Per Unit Distribution, DRP Price at $4.39
Montaka Global Extension Fund has announced a distribution of 11.10 cents per unit for the half-year ending December 2024, alongside details of its Distribution Reinvestment Plan and tax component estimates.
- Distribution of 11.10 cents per unit declared for period ended 31 December 2024
- Key dates set: ex-distribution on 2 January, payment on 21 January 2025
- Distribution Reinvestment Plan (DRP) operational with reinvestment unit price at $4.3948
- Fund confirmed as an Attribution Managed Investment Trust for 2024-25 income year
- Tax components for distribution are estimates, with final details pending in June 2025
Distribution Announcement and Timeline
Montaka Global Extension Fund (ASX: MKAX) has declared a distribution of 11.10 cents per unit for the six-month period ending 31 December 2024. This announcement provides investors with clarity on income returns amid an evolving market backdrop. The fund’s ex-distribution date was set for 2 January 2025, with the record date following on 3 January. Payment of the distribution is scheduled for 21 January 2025.
Investors who elected to participate in the Distribution Reinvestment Plan (DRP) had until 6 January 2025 to submit their election notices. Under the DRP, distributions are reinvested into additional units of the fund, with the reinvestment unit price fixed at $4.3948 for this period. This mechanism allows investors to compound their holdings while potentially benefiting from the fund’s long-term growth strategy.
Tax Treatment and Regulatory Status
Montaka Global Extension Fund has reaffirmed its status as an Attribution Managed Investment Trust (AMIT) for the income year ending 30 June 2025. This classification under the Income Tax Assessment Act 1997 has implications for how income is attributed and taxed for investors. While the fund has provided estimated tax components related to the distribution, it cautions that these figures are provisional. Final tax details will be disclosed in the AMMA statement expected mid-2025, which investors will need for accurate tax reporting.
The responsible entity, Perpetual Trust Services Limited, underscores the importance of consulting the Product Disclosure Statement and seeking professional financial advice tailored to individual circumstances. This prudent reminder aligns with regulatory requirements and investor protection standards.
Fund Strategy and Market Positioning
The Montaka Global Extension Fund pursues a strategy focused on long-term capital growth by combining deep sector expertise with disciplined valuation and specialist short-selling capabilities. This dual approach aims to enhance portfolio capital preservation while capturing upside from high-quality global businesses. The fund’s distribution reflects its ongoing commitment to delivering income alongside capital appreciation, a balance that appeals to investors seeking diversified exposure within a hedge fund structure.
As markets continue to navigate volatility and shifting economic conditions, Montaka’s approach of blending long and short positions may provide resilience. The distribution announcement serves as a tangible marker of the fund’s performance and operational transparency, factors that remain critical in maintaining investor confidence.
Bottom Line?
Montaka’s steady distribution and DRP details set the stage for investor engagement as the fund navigates 2025’s market challenges.
Questions in the middle?
- How will the final tax components impact investor returns once the AMMA statement is released?
- What is the anticipated performance outlook for the fund in the second half of the 2024-25 financial year?
- How actively is the fund adjusting its short-selling strategy amid current global market conditions?