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Printed: 21 April 2024 10:03 AM

19 Jan 2022 - Performance Report: Insync Global Quality Equity Fund


Report Date19 January 2022
ManagerInsync Fund Managers
Fund NameInsync Global Quality Equity Fund
StrategyEquity Long
Latest Return DateDecember 2021
Latest Return0.35%
Latest 6 Months10.81%
Latest 12 Months27.03%
Latest 24 Months (pa)21.09%
Annualised Since Inception14.91%
Inception Date01 July 2018
FUM (millions)AU$84.9
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.

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.

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 Quality Equity Fund rose +0.35% in December, taking 12-month performance to +27.03% vs the Global Equity Index's +25.41%.

The Insync Global Quality Equity Fund has a track record of 12 years and 4 months and has consistently outperformed the Global Equity Index since inception in October 2009, providing investors with a return of 14.91%, compared with the index's return of 12.24% over the same time period.

On a calendar basis the fund has had 1 negative annual return in the 12 years and 4 months since its inception. Its largest drawdown was -12.64% 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 never fallen below 1 and currently sits at 1.12 since inception. The fund has provided positive monthly returns 82% of the time in rising markets, and 22% of the time when the market was negative, contributing to an up capture ratio since inception of 83% and a down capture ratio of 73%.
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