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Monthly Fund Commentary - Mar 2018


Global Titans surges ahead!

Strong approach to risk see returns strongly outperforming.

Whilst March witnessed market declines (the same too for the calendar year to date), Insync’s Global Titans Fund has performed well. A combination of its disciplined ‘quality at a reasonable price’ stock selection, use of our unique Megatrends® and a strong focus on risk management drove this outcome. Click here for more on Megatrends®

A return to more normal levels of market volatility amid investor worries about rising interest rates, mounting inflation pressures and escalating trade tensions between the U.S. and China, sent developed-market stocks reeling at various times throughout the quarter. Meanwhile emerging markets stocks powered through the turmoil.

An impressive 20.85% after fees and before the cost of protection resulted in a 6.35% out-performance over the index for the year ending March 31. After the cost of protection (remembering this fund has unique catastrophe protection) it still outperformed the index by 2.45%.

Performance was driven by positive contributions from our holdings in Heineken, Zoetis, Booking Holdings, Estee Lauder and London Stock Exchange. The main negative contributors were eBay, Accenture, Google and Facebook.

Defensive stocks pulled markets lower, weighed down by losses in the consumer staples and telecommunication services sectors. Late in the quarter, information technology stocks came under intense pressure as several tech giants faced regulatory scrutiny and trade-related concerns. Even so, the technology sector finished the volatile quarter with a positive gain.

Calendar year to date (March Quarter) the result is similar. 6.11% after fees before the cost of protection. +4.99% ahead of the index. After the cost of protection a 3.82% return was achieved. +2.71% ahead of the index.

Most importantly its longer term performance is on track as well, meeting its benchmark over 7 years and Since inception. As a Quality style fund its designed to sit alongside Long only Value and Growth managers in investor portfolios focused only on upside, correlating well with these cohorts. Click here for a closer look at how we achieve our results.

The fund avoided downside months 46% of the time yet participated in upside vents 74% of the time since inception. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Insync continues to utilise index put options to buffer sharp falls in equity (catastrophes) not yet having cause to exercise them.

TOP 10 HOLDINGS

Microsoft

Heineken

Stryker Corp

Visa

Cognizant Tech Solutions

Alphabet

Booking Holdings

Zoetis

Accenture

eBay

KEY INFORMATION

APIR code SLT0041AU

ASX mFund code INS01

Distributions paid Annually, as at 30 June

Unit pricing Daily

Minimum initial investment $10,000

Applications & redemptions Each Sydney business day

Entry & exit fee Nil

Buy/Sell spread 0.20%/0.20%

MER 1.3% (plus GST) p.a.

Investment style

Concentrated, large cap global equity fund, incorporating active currency management and downside protection strategies

Investment objectives

To deliver global equity like returns over rolling 5 year periods, whilst providing downside protection for severe market falls, with the aim of achieving above market results for our investors over the full cycle

Contact Insync

www.insyncfm.com.au

T: + 61 2 8094 1255

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