The Surrey Australian Equities Fund (SAEF) experienced a challenging month in March, with escalating conflict in the Middle East driving a sharp global risk-off environment and placing significant pressure on equity markets, particularly within areas such as gold and copper stocks where we have measured positions.
The Fund returned -18.6% net of fees for the month, compared to the -11.0% decline in the Small Ordinaries Accumulation Index (XSOAI). Despite this pronounced macroeconomic shock, the Fund remains in positive territory over the past 12 months and long term while we note the market has begun April very strongly, particularly in those stocks severely sold off in March.
While we have flexibility to move very quickly, we view the portfolio as representing the best value we have seen in some time along metrics such as quality, valuation, diversification, balance sheet strength and cashflow. While we can’t predict the short-term we believe this positions it very positively should global geopolitics stabilise.
The Fund is open to new and existing investors, and we are available on the HUB24 IDPS platform for wholesale investors – Surrey Australian Equities Fund (SAEF) code SPC2070AU. The Information Memorandum and application forms are linked in this email, with paperless applications for new and existing investors able to be completed online.
Nick Maclean
Managing Director
Surrey Asset Management
Level 47, 80 Collins Street, (North Tower) Melbourne VIC 3000.
Email: nmaclean@surreyassetmanagement.com Mobile: 0425 726 305