International equities fund managers, Insync, notes that Dominos has only fallen 10% in share price compared to the benchmark index, MSCI ACWI which is down 31%.
The MSCI All Country World Index is a useful benchmark for comparing performance of international equity funds. “Even before COVID-19, Dominos has been growing in market support. Even before the virus hit and people ordered in more pizza, female participation in the workforce has risen steadily. This meant that TIME HAS BECOME MORE VALUABLE to the household, such that demand for home- delivered food was rising. “It is a fact that in the US, since 2012, the value of food consumed by households that was prepared away from home has exceeded that of food prepared at home,” said John Lobb, Portfolio Manager, Insync Funds Management.
Dominos invented home delivery, so delivery is “baked-in” to menu prices, and hiring its own delivery drivers has service, quality and cost advantages. The fragmented business models/networks of many of its competitors won’t keep Millennials ordering. “Our investment philosophy revolves around high quality companies. We look for companies that are benefiting from disruption, have long runways of growth through exposure to global megatrends and are highly profitable,” commented Mr. Lobb.
The video below was recorded in January 2020 and talks about the fundamentals of Dominos and the megatrends that are driving its growth.
Mr John Lobb Portfolio Manager Insync Funds Management 02 8094 1255
0428 810 009
Distributed by Chris Hocking Strategies 0418 603 694
About John Lobb
John started his career in 1989 as assistant portfolio manager for Bankers Trust Australia based in Sydney. In 1994 he joined Citigroup Global Asset Management where, as a small cap specialist, advanced to portfolio manager of industrial equities and joint manager of the balanced fund. John moved to Credit Suisse Global Asset Management in 1997 researching and analysing industrial equities culminating in the development, marketing and management of the Australian equity small cap fund. In January 2003 John moved to Orion Asset Management at its inception.
Contributing to the management of the ASX300 Fund, John also served as Lead portfolio manager of the small cap Australian Equities fund. From 2011, John was also a portfolio manager on the global, long-short equities fund focused on Asia. John remained at Orion until February 2014. John has a BA Economics majoring in Accountancy and Finance from Macquarie University and a Diploma from the Securities Institute of Australia.
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.