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February 2024 Monthly Update

We delivered another favourable month amounting to 33%-35% gains across both funds for the year. Since 2017 we surpassed the benchmark in 6 out of 7 calendar years. This underscores Insync's meticulous, data-oriented investment strategy consistently yields robust performance. Most importantly the funds have achieved their 5-year rolling period objectives, net of fees.


Obtaining returns from AI doesn’t require selecting AI stocks per se; rather understanding how AI’s influence across most sectors will deliver outsized returns for a few specific companies in each. Who will be the ones best leveraging AI inside their businesses well ahead of their competition? Overlay this answer with one or more of Insync’s identified megatrends, and outsized financial returns from these select few won’t be surprising. Sidestepping  stocks that are sluggish in properly adjusting to the new realities of AI will however be just as important. We see a clear divergence in stock returns ahead between those that quickly and holistically embed AI, and the rest.


The growth and implications of AI are expected to unfold significantly over the next decade. Bloomberg projects the AI market itself to reach US$1.3 trillion by 2032. Two examples of profound AI innovation begin with Klarna a fintech firm. It reported its AI assistant handled tasks equivalent to 700 full-time employees, driving a projected boost to profits by US$40 million this year. Meanwhile in the pesticide and agriculture sectors, Blue River's "See & Spray" AI technology distinguishes any crop from a weed. It aims to slash herbicide usage by up to 90%, potentially saving the global agriculture sector approximately $3 billion p.a. not to mention the environment too.

Both Funds outperformed!

Net Zero Megatrend – Going up!

 

Our investment in the elevator & escalator sector capitalizes on a unique confluence of increased urbanization, technological innovation, and greater sustainability.

This industry stands at the forefront of addressing the critical needs of an increasingly urbanized global population, projected to demand the construction of urban spaces equivalent to a New-New York City every month for the next 40 years. This massive urban expansion of 480 NY cities particularly in rapidly developing economies in Asia, underscores a robust demand for efficient vertical transportation.

The focus on sustainability and energy efficiency further propels this market with innovations aimed at reducing energy consumption and enhancing the operational efficiency of these essential pieces of urban life. Such advancements wont just benefit new habitats but also align with global initiatives to retrofit existing buildings with greener alternatives. This presents dual avenues of market expansion.

Technological advancements including AI and machine learning are redefining these essential transporters of people. From predictive maintenance that anticipates and mitigates potential issues before they arise, to optimised scheduling that enhances efficiency and user experience, technology is at the heart of this industry's evolution. These innovations ensure that investments in the elevator & escalator business are not just about infrastructure but also about embracing the future of smart, connected buildings.

 

Demand is also consistent for upgrades and maintenance underscoring a robust continued source of income - a key factor of this industry's durability and potential for continuous expansion.




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