|Latest Return Date|
|Latest 6 Months|
|Latest 12 Months|
|Latest 24 Months (pa)|
|Annualised Since Inception|
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.
The Surrey Australian Equities Fund has a track record of 3 years and 9 months and therefore comparison over all market conditions and against its peers is limited. However, the fund has underperformed the ASX 200 Total Return Index since inception in June 2018, providing investors with an annualised return of 6.98% compared with the index's return of 8.33% over the same period.
On a calendar year basis, the fund hasn't experienced any negative annual returns in the 3 years and 9 months since its inception. Over the past 12 months, the fund's largest drawdown was -15.32% vs the index's -6.35%, and since inception in June 2018 the fund's largest drawdown was -26.75% vs the index's maximum drawdown over the same period of -26.75%. The fund's maximum drawdown began in February 2020 and lasted 6 months, reaching its lowest point during March 2020. The fund had completely recovered its losses by August 2020.
The Manager has delivered these returns with 4.87% more volatility than the index, contributing to a Sharpe ratio which has fallen below 1 three times over the past three years and which currently sits at 0.4 since inception. The fund has provided positive monthly returns 81% of the time in rising markets and 7% of the time during periods of market decline, contributing to an up-capture ratio since inception of 110% and a down-capture ratio of 112%.