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Printed: 25 March 2023 2:13 AM


14 Apr 2022 - Megatrend in Focus: Enterprise Digitisation is accelerating

By: Insync Fund Managers

Megatrend in Focus: Enterprise Digitisation is accelerating

Insync Fund Managers

March 2022

Whilst we focused on this exciting megatrend and Accenture last year, things are moving even faster than forecast and so a revisit is timely.

Accenture is a prime holding for this megatrend and thus remains in the Insync portfolio. In their recent earnings call, they announced a very strong demand environment. This has induced double-digit growth in all parts of their business and also across all their markets, industries and services.

Many of their clients are embarking upon bold transformation programs, often spanning multiple parts of their enterprise in an accelerated time frame. Macro-economics have little impact on these companies spend on digitisation. These clients recognize the need to transform almost all of their businesses, meshing technology, data and AI and with new ways of working and delivering their product or service to market.

Current market gyrations have not changed the trajectory of our identified megatrends (including this one) in the Insync portfolio. Our companies such as Accenture continue to grow profitably at multiples many times that of GDP.

Insync's intense focus on the fundamentals, investing in businesses like Accenture that are compounding their earnings at high rates, gives us confidence that the portfolio is well positioned to deliver strong returns as volatility in markets subside.

Stocks held by Insync possess:

  • Far lower than market debt to equity,

  • Excellent interest coverage,

  • 4x the ROIC of the market average,

  • Not dependent on new capital for growth,

  • Margin and/or pricing power

Funds operated by this manager:

Insync Global Capital Aware FundInsync Global Quality Equity Fund

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