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Printed: 21 June 2024 12:10 PM


14 Nov 2022 - Performance Report: Insync Global Capital Aware Fund


Report Date14 November 2022
ManagerInsync Fund Managers
Fund NameInsync Global Capital Aware Fund
StrategyEquity Long
Latest Return DateOctober 2022
Latest Return5.22%
Latest 6 Months-4.59%
Latest 12 Months-19.77%
Latest 24 Months (pa)-2.68%
Annualised Since Inception9.52%
Inception Date07 October 2009
FUM (millions)AU$62.05
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 by +5.22% in October, a difference of -0.98% compared with the Global Equity Index which rose by +6.2%.

The Insync Global Capital Aware Fund has a track record of 13 years and 1 month and has underperformed the Global Equity Index since inception in October 2009, providing investors with an annualised return of 9.52% compared with the index's return of 10.48% over the same period.

On a calendar year basis, the fund has experienced a negative annual return on 2 occasions in the 13 years and 1 month since its inception. Over the past 12 months, the fund's largest drawdown was -29.45% vs the index's -15.77%, and since inception in October 2009 the fund's largest drawdown was -29.45% vs the index's maximum drawdown over the same period of -15.77%. The fund's maximum drawdown began in January 2022 and has so far lasted 9 months, reaching its lowest point during September 2022.

The Manager has delivered these returns with 0.91% more volatility than the index, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.67 since inception. The fund has provided positive monthly returns 81% of the time in rising markets and 21% of the time during periods of market decline, contributing to an up-capture ratio since inception of 59% and a down-capture ratio of 85%.
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