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insync Global Titans Fund

insync believes that investing with a strong focus on capital preservation will lead to superior relative and absolute returns over time. We do this through conservative stock selection from a select pool of exceptional global companies and by actively managing market risk and currency risk.

insync sets itself two objectives:

  1. To deliver a positive return at least 2% above the Australian cash rate each year; and
  2. To outperform the global equity benchmark by at least 3% on a rolling 3 year basis.

Read on to find out more about the insync Global Titans Fund:

  • About Global Titans Fund
  • Fund Performance
  • Reports

About Global Titans Fund

Quick Fund FactsFund VisionInvestment ApproachPortfolio Snapshot
  • Portfolio Manager: Monik Kotecha
  • Structure: Global Equity Fund
  • Inception Date: 7 October 2009
  • Management and Administration Fee*: 1.3% per annum of the net asset value of the Fund
  • Buy/Sell Spread: 0.20% / 0.20%
  • Distribution Frequency: Annually
  • APIR Code: SLT0041AU
  • ARSN Code: 165 786 390
  • Benchmark: Unconstrained
  • Performance Fee*: 15% of any performance above the RBA cash rate plus 2% based on annual performance, with higher water mark protection for investors
*All fees are exclusive of the net effect of GST.

Our Fund Vision

insync is focused on delivering consistent returns with active management of downside risk and exchange rate risk. The insync team searches the world for exceptional companies capable of consistently growing earnings and delivering shareholder returns through dividends and buybacks that are trading below their underlying value.

Our Insights

  • We believe that only a small number of companies are truly exceptional, therefore we focus on companies with high returns on invested capital and consistent growth in dividends.
  • Our experience and knowledge shows us that analysts are poor at forecasting earnings, especially for cyclical companies, so we look for companies with consistent track records (e.g. global brands).
  • We have also seen that less volatile, high quality stocks outperform over time as they fall less during downturns and win in the end, like the tortoise versus the hare.
  • Exceptional companies are often mispriced as the market underestimates the duration of their competitive advantage.
insync adopts a two-step process to construct the portfolio for the Global Titans Fund.

Step 1 Screening

We employ four simple, yet efficient, screens to narrow the universe of over 40,000 listed global companies down to 150 exceptional quality companies that we believe have the potential to consistently grow their profits and deliver shareholder returns through increased dividends and/or buybacks. These screens are as follows:

ScreenRationale
SizeLarge stocks to ensure sufficient liquidity and better protection in down markets.
Balance SheetReduces risk of cut in dividends during business downturns.
ProfitabilityBias to companies that consistently deliver high ROIC.
Capital AllocationIncreasing dividends and/or buybacks.

Step 2 Focus
insync uses this list of highly profitable and shareholder oriented companies to conduct fundamental research on the most attractive opportunities. Preference is given to companies that trade at attractive valuations. Capital allocation is a key area of focus with a preference towards companies that have adopted a balanced approach to returning cash back to shareholders and retaining earnings to grow future profitability.

Assessing the industry structure in which each company operates, and the trend of a company’s return on investment, is important. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks.

We focus on companies with high returns on invested capital and consistent growth in dividends. Some of the companies and household brands we have or can invest in include:

sanofi quaker perrier pepsi mastercardbarcleysbudsfirtogillet

paypalJWVisaoral-bnestlaynestcafe mcdonalds1

Fund performance

Performance ChartFund PerformanceDistributions

Chart-20170331

*Returns are calculated net of management fees and expenses but before tax and adviser fees (if applicable) with all distributions re-invested. Inception date for the insync Global Titans Fund is 7 October 2009.

**MSCI AC World ex-Australia Net Total Return Index in $A.

As at 31 May 2017

Performance3 Months6 Months1 Year3 Years (p.a.)5 Years (p.a.)Since Inception (p.a.)
Insync Global Titans Fund12.90%17.28%10.42%10.13%11.48%10.16%
Benchmark8.70%12.63%14.42%13.66%17.73%11.41%
Out/Under Performance+4.20%+4.65%-4.00%-3.53%-6.25%-1.25%

*Returns are calculated net of management fees and expenses but before tax and adviser fees (if applicable) with all distributions re-invested. Inception date for the insync Global Titans Fund is 7 October 2009.

**MSCI AC World ex-Australia Net Total Return Index in $A.

30 June 2015
Distribution per unit: $0.0499

Reinvestment price: $1.6024

30 June 2014

Distribution per unit: $0.0413

Reinvestment price: $1.3897

*Dollars per unit

insync aims to pay a distribution once a year at the end of June.

Reports