23 Oct 2013 - Fund Review: Insync Global Titans Fund

Attached is our most recently updated Fund Review on the Insync Global Titans Fund.  

We would like to highlight the following:

• The Global Titans Fund invests in a concentrated portfolio of 15-25 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
• Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
• The Fund?s unit price decreased by 0.6% in September. The main detractors for the month were GlaxoSmithKline, General Mills and SAP. The largest positive contributions came from our holdings in Reckitt Benckiser, British Sky Broadcasting, Safran and Nestle. Safran has more than a 75% market share in narrow-body aircraft engines, an industry with very high barriers to entry. There appears to be a long cycle of new engine orders underway, driven by a significant replacement cycle due to an ageing global airline fleet, a sharp increase in low-cost airlines, increased air traffic globally, and a significant improvement in fuel efficiency reducing the payback period for airlines on new aircraft investment.
• Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.

For further details on the Fund, please do not hesitate to contact us.

Australian Fund Monitors