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Printed: 29 September 2023 8:20 PM


17 Nov 2021 - Performance Report: Insync Global Capital Aware Fund

By: Australian Fund Monitors

Report Date17 November 2021
ManagerInsync Fund Managers
Fund NameInsync Global Capital Aware Fund
StrategyEquity Long
Latest Return DateOctober 2021
Latest Return1.11%
Latest 6 Months10.31%
Latest 12 Months18.07%
Latest 24 Months (pa)19.66%
Annualised Since Inception12.38%
Inception Date07 October 2009
FUM (millions)AU$76.37
Fund OverviewThe fund aims to outperform the MSCI All Country World ex-Australia Net Total Return Index (in Australian Dollars) over a full market cycle before the cost of protection while providing downside protection for severe market falls.

Insync invests in a concentrated portfolio of high quality companies that possess long 'runways' of future growth benefitting from Megatrends. Megatrends are multiyear structural and disruptive changes that transform the way we live our daily lives and result from a convergence of different underlying trends including innovation, politics, demographics, social attitudes and lifestyles. They provide important tailwinds to individual stocks and sectors, that reside within them. Insync believe this delivers exponential earnings growth ahead of market expectations.

The fund uses Put Options to help buffer the depth and duration that sharp, severe negative market impacts would otherwide have on the value of the fund during these events.

Insync screens the universe of 40,000 listed global companies to just 150 that it views as superior. This includes profitability, balance sheet performance, shareholder focus and valuations. 20-40 companies are then chosen for the portfolio. These reflect the best outcomes from further analysis using a proprietary DCF valuation, implied growth modelling, and free cash flow yield; alongside management, competitor, and industry scrutiny.

The Fund may hold some cash (maximum of 5%), derivatives, currency contracts for hedging purposes, and American and/or Global Depository Receipts. It is however, for all intents and purposes, a 'long-only' fund, remaining fully invested irrespective of market cycles.
Manager CommentsThe Insync Global Capital Aware Fund rose +1.11% in October, taking 12-month performance to +18.07%.

The Insync Global Capital Aware Fund has a track record of 12 years and 2 months and has outperformed the Global Equity Index since inception in October 2009, providing investors with a return of 12.38%, compared with the index's return of 11.96% over the same time period.

On a calendar basis the fund has had 2 negative annual returns in the 12 years and 2 months since its inception. Its largest drawdown was -10.98% lasting 7 months, occurring between September 2018 and April 2019 when the index fell by a maximum of -10.57%.

The Manager has delivered higher returns but with higher volatility than the index, resulting in a Sharpe ratio which has fallen below 1 once and currently sits at 0.97 since inception. The fund has provided positive monthly returns 80% of the time in rising markets, and 24% of the time when the market was negative, contributing to an up capture ratio since inception of 57% and a down capture ratio of 66%.
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