Insync April 2019 Fund Commentary

May 21, 2019

Performance Commentary

 

April was a big month for markets and even better for Insync investors. Global equity markets overall rose strongly in April, (MSCWI +4.38% in AUD) upon encouraging economic data and continued dovishness by central banks. Corporate bonds outperformed government bonds seeing the MSCI world bond index also strongly increasing by +3.2%. Equity Growth investment styles thus continued the Q1 trend of outperforming Value styles. 

US equities advanced (+4.1% in USD), supported by strong labour market data as well as better-than-expected Q1 GDP growth (3.2% annualised, -up from 2.2% Q4 2018). Corporate earnings generally remained robust. Google was a standout on the negative posting lower than expected growth results (Insync has previously exited Alphabet). Technology overall however, along with the Communications sector, posted strong gains as did Financials holding number one position.

 

Eurozone markets joined in on the positive mood, up +4.3% (Euro). Top performing sectors here were also information technology and financials. Economic growth for Q1 proved more resilient than feared with Germany raising its GDP forecast.


UK equities recorded slightly less but strong positive gains of 2.7% (GBP) despite the mess of Brexit (or perhaps in spite of it), but underperformed global equities as a whole. 


Japan stocks edged higher by 1.7% albeit subdued with the yen edging lower against the dollar. Greater China markets also ended higher overall benefiting from positive economic news across several indicators and Taiwan’s Technology sector also leading gains.  


Emerging markets posted a positive return of 2.1% (USD) amid easing global growth concerns but with one eye firmly on rising US/China tensions. The one bright spot being South Africa from its recent election outcome.

 

April Fund Performance

 

April saw a very strong 7.24% return for the Global Capital Aware Fund (protected) and 7.35% for the Global Quality Equity Fund for April, this equates to over 60% of index gains after fees. Our Top 10 holdings that currently equates to around half the portfolio saw Walt Disney and Facebook leading gains at 22.7% and 15% respectively. The worst of the Top 10 performers being Intuit at -5% and Amadeus IT at -1.1%.

 

Disclaimer

EQT Responsible Entity Services Limited (“EQT”) (ABN 94 101 103 011), AFSL 223271, is the Responsible Entity for the Insync Global Quality Equity 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.

 

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