Over the next 15 years we will experience more change than ever in human history.
Simply investing along country and sector lines will no longer provide the potential differentiation or the potential out performance of benchmarks that it once did.
Insync invests in megatrends to pick stocks that are more likely to outperform their peers in the future. Megatrends possess an aura of inevitability. Like a tsunami they are unstoppable, are enormous in size and have a far and wide-reaching impact. In an uncertain world they provide greater certainty as to where the world is heading.
By 2030, 8.6 billion people will walk the earth:
Around three million people move to cities every week
Cities will become bigger and we will have more of them – 43 megacities
Fertility rates are declining in most parts of the developed world and life expectancy is increasing
By 2030 there will be in excess of one billion people over the age of 65
Millennials and centennials (born after 1981) are staring to dominate with distinctly different consumer preferences than previous generations (craft beer over major brand beverages: organic products with proof of provenance)
Identifying megatrends is not as easy as it first appears because it is necessary to separate long-term trends with fads and themes, where the latter two tend to be more transient and less sustainable. Many megatrends also remain generally too broad to be coherently analysed for investment purposes. Instead, Insync focus on opportunities where the impacts from one or multiple megatrends amplify structural growth along economic value chains producing observable winners.
The rise of India’s middle class, where some 600 million Indians are currently poised to become “middle class” over the next decade, combined with the expanding middle class in China, will reshape the composition, and the orientation, of the global middle class for the foreseeable future. Their combined spending power over the next decade will exceed US$15 trillion. An additional powerful sub-trend is that the gender spending-power gaps will narrow in both countries over the next decade.
Anticipating the size of emerging middle-class segments worldwide with reliable and accurate data is critical. Insync identified the prestige beauty industry as an industry profitably benefiting from this collision of megatrends. Women in China aged between 15 and 65 spend US$23 annually on prestige beauty compared to US$255 in the US on average. The gap has started to narrow at an accelerating pace.
The Insync global equity funds are exposed to 14 global megatrends with typically one or two stocks per megatrend.
Mr Monik Kotecha CIO Insync Funds Management 02 8094 1255
0413 768 480
Distributed by Chris Hocking Strategies 0418 603 694
About Monik Kotecha
Insync’s Chief Investment Officer, Monik Kotecha, has over 28 years of funds management experience in international and Australian equity markets and has worked in London, New York and Sydney. This included over 7 years as a Senior Portfolio Manager at Investors Mutual Limited, 5 years with BT Funds Management Limited and 3 years with the Abu Dhabi Investment Authority.
Monik was a Senior Portfolio Manager of the Australian Share Fund at Investors Mutual Limited and a key member of the Investment Team which was awarded Fund Manager of the Year Australian Equities in 2002 & 2003 by Money Management. Prior to this Monik was the lead portfolio manager for over 5 years at BT Funds Management Limited on a number of international equity funds and spent some time as a member of the asset allocation team. Monik spent the first few years in funds management as a Pan European Equity analyst at the Abu Dhabi Investment Authority in London.
About Insync Fund Managers
Established in July 2009 Insync Funds Management Pty Ltd is a global equity specialist based in Sydney, Australia. Key executive’s own equity in the business and co-invest in the Fund alongside other investors.
Insync believes that investing in a concentrated portfolio of high-quality companies with a long runway of growth opportunities will lead to superior returns over time. They do this through stock selection from a select pool of global companies which they consider exceptional and benefitting from global megatrends. Combining this with active management of downside market risks, Insync also seeks to enhance portfolio protection during significant equity market falls.
Insync’s focus on seeking quality businesses has driven the decision to build an investment team with individuals who have both investment skills and real business experience. Insync believe that a team that combines these skills will lead to better investment decisions.
Disclaimer Equity Trustees Limited (“EQT”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Insync Global Quality Fund and the Insync Global Capital Aware Fund. EQT is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). This information has been prepared by Insync Funds Management Pty Ltd (ABN 29 125 092 677, AFSL 322891) (“Insync”), to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Insync, EQT nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.