Surrey Australian Equities Fund
The Fund objective is to outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling 5-year periods. (For Wholesale Investors Only)
The Surrey Australian Equities Fund will be primarily focused on investing in companies listed in the S&P/ASX Small Ordinaries Index while retaining the capacity to invest up to 30% of the Fund in ASX-listed companies outside this benchmark. The Investment Manager believes this unique approach offers attractive, under-researched investment opportunities that can provide capital upside and growing dividend income over rolling 5-year periods.
The Fund 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.
Investment Approach
The Investment Manager will be primarily focused on investing in companies listed in the S&P/ASX Small Ordinaries Index while retaining the 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.
Examples of Qualitative characteristics we typically look for include, but are not limited to:
- Management and board strength and ownership
- Competitive advantages
- Pricing power
- Management financial incentives
- Industry structure and the company’s position within it
Examples of Quantitative characteristics we typically look for include, but are not limited to:
- Strong historical and sustainable future ROIC
- Underappreciated earnings growth and corresponding operating and free cash flow growth
- Robust Balance sheet
- Absolute and relative valuation multiples
Examples of Value Latencies we typically look for include, but are not limited to:
- Undervalued assets
- Industry consolidation
- Business turnarounds
- R&D
- Underappreciated cashflow growth
- Balance sheet recapitalisations
Investment Approach
The Fund’s investment benchmark is the S&P/ASX Small Ordinaries Accumulation Index and will be the primary focus of the Fund’s investments subject to the following portfolio limitations:
| Asset Type | Portfolio Limitation |
| Cash and equivalents | No limit – may be up to 100% of the portfolio |
| Australian listed equities within the S&P/ASX Small Ordinaries Index constituents. | No limit – may be up to 100% of the portfolio |
| Australian listed equities other than S&P/ASX Small Ordinaries Index constituents. | Up to 30% of the portfolio at all times |
| Each individual company | Up to 15% of the portfolio at all times |
| Derivatives and foreign currencies | Not allowed |
| Borrowings/leverage by the Fund | Not allowed |
Specialised Investment and Lending Corporation Ltd ACN 149 520 918 (Trustee) is the issuer of the Fund’s information memorandums and supplementary disclosure documents (IM). Prospective investors are advised to read the IM in full and seek professional advice prior to making any decision regarding an investment in the Fund.
This website contains general information only and is not intended to provide any person with financial advice or offer of any kind. No reliance may be placed on this website for any purpose. Information relating to the Fund contained in this website has been prepared without taking into account the objectives, circumstances, financial situation or needs of any person, and may differ to information contained in the IM. This website may also contain statements regarding our intent, belief or current expectations with respect to market conditions. Past performance and/or forward-looking statements are not a reliable indicator of future performance.
Neither the Investment Manager, Trustee, AFSL Holder nor its affiliates warrant or guarantee, whether expressly or implicitly, the accuracy, validity, timeliness, or completeness of any information or data (whether or not prepared by us) within this website for any purpose or use or that the information will be free from error. Further, the Investment Manager, Trustee, AFSL Holder and its affiliates expressly disclaim any responsibility and shall not be liable for any loss, damage, claim, liability, cost or expense however arising and whether in tort (including negligence), contract, equity or otherwise in connection with or from the use of the information in this website.
Surrey Asset Management is a boutique investment management company formed in 2017 to manage the Surrey Australian Equities Fund. The Fund specialises in investing in Australian companies on behalf of high-net-worth individuals and institutions.
Surrey Asset Management is operated by Nicholas Maclean and Michael Woolhouse who collectively have over 30 years of experience in the Australian equities market and both have a significant portion of their personal net assets invested in the Fund on an equal fee structure to clients.
Nick has 15 years of experience analysing and investing in Australian and global equities. Prior to launching Surrey Asset Management Nick spent close to 4 years at Cooper Investors working across the Australian & Asian Equities portfolios. In this position, he was a member of a team responsible for investment decision-making spanning a range of small, mid and large capitalisation companies.
Prior to Cooper Investors, Nick spent 4 years as head of the Small/Medium company research team at Commonwealth Bank of Australia where he was independently voted in the top quartile of analysts across the market. Nick has also worked as a small/medium company analyst at the smaller company specialist boutique institutional broking & corporate advisory business, Lodge Partners.
Nick holds Bachelor's degrees in both Commerce and Arts and a Graduate Diploma in Applied Finance & Investment.
Michael has over 20 years of experience working within the Australian financial markets with a keen interest in mid to smaller companies listed on the ASX. Prior to launching Surrey Asset Management, Michael was the founding manager of CCZ Statton Equities office in Melbourne.
Responsible for advising institutional fund managers, family offices & HNW investors of active opportunities in the small to mid-cap sector. This position enabled Michael to build valuable relationships with listed company management teams generating valuable opportunities, insights and returns to the CCZ client base.
Prior to joining CCZ Statton Equities, Michael began his career with and was subsequently appointed CEO of the smaller company specialist boutique institutional broking & corporate advisory business, Lodge Partners. Michael’s financial services exposure includes but is not limited to client interaction, strategic direction, stock selection, research management, technology, compliance and risks.
Michael holds a Bachelor of Commerce degree with majors in accounting and finance.
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