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Printed: 07 July 2022 12:16 AM

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14 Sep 2021 - Performance Report: Surrey Australian Equities Fund
By: Australian Fund Monitors

Report Date14 September 2021
ManagerSurrey Asset Management
Fund NameSurrey Australian Equities Fund
StrategyEquity Long
Latest Return DateAugust 2021
Latest Return6.20%
Latest 6 Months13.87%
Latest 12 Months28.34%
Latest 24 Months (pa)19.96%
Annualised Since Inception13.77%
Inception Date01 June 2018
FUM (millions)AU$18
Fund OverviewThe Investment Manager will be primarily focussed on investing in companies listed in the S&P/ASX Small Ordinaries Index while retaining capacity to invest up to 30% of the Fund in ASX listed companies outside this benchmark. The Investment Manager believes this approach offers attractive, under researched investment opportunities that can provide capital upside and growing dividend income over rolling 5-year periods.

The Investment Manager follows a defined investment process which is underpinned by detailed bottom up fundamental analysis, overlayed with sectoral and macroeconomic research. This is combined with an extensive company visitation program where we endeavour to meet with company management and with other stakeholders such as suppliers, customers and industry bodies to improve our information set.

Surrey Asset Management defines its investment process as Qualitative, Quantitative and Value Latencies (QQV). In essence, the Investment Manager thoroughly researches an investment's qualitative and quantitative characteristics in an attempt to find value latencies not yet reflected in the share price and then clearly defines a roadmap to realisation of those latencies.

Developing this roadmap is a key step in the investment process. By articulating a clear pathway as to how and when an investment can realise what the Investment Manager sees as latent value, defines the investment proposition and lessens the impact of cognitive dissonance. This is undertaken with a philosophical underpinning of fact-based investing, transparency, authenticity and accountability.
Manager CommentsThe Surrey Australian Equities Fund rose by +6.2% in August, an outperformance of +3.7% compared with the ASX 200 Total Return Index which rose by +2.5%. Over the past 12 months, the fund has risen by +28.34%, and since inception in June 2018, the fund has returned +13.77% per annum, a difference of +2.66% relative to the index which has returned +11.11% on an annualised basis over the same period.

The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 6.86 for performance over the most recent 12 months to a low of 0.88 over the latest 36 months, and is 0.89 for performance since inception. By contrast, the ASX 200 Total Return Index's Sortino for performance since June 2018 is 0.75.

Since inception in June 2018 in the months where the market was positive, the fund has provided positive returns 83% of the time, contributing to an up-capture ratio for returns since inception of 123.38%. Over all other periods, the fund's up-capture ratio has ranged from a high of 142.61% over the most recent 24 months to a low of 92.95% over the latest 12 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
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