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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The Insync Global Capital Aware Fund rose +5.29% in February after fees and protection, slightly outperforming AFM's Global Equity benchmark and taking annualised performance since inception in October 2009 to +9.93%. The Fund's largest drawdown since inception has been -10.98% versus the benchmark's -13.60% over the same period which, in conjunction with the Fund's down-capture ratio of 58.61%, highlights the benefit of the Fund's downside protection. Before the cost of protection, the Fund returned +5.38% in February and has delivered +12.61% p.a. since inception (see the Insync Global Quality Equity Fund's profile). Insync noted strong contributions from stock selection were marginally offset by a decline in the value of the index 'puts' due to a continued sharp market recovery and further falls in volatility. Positive highlights include Intuit, Visa, Estee Lauder, Accenture and Heineken (read Insync's latest Insights article on Heineken here). Detractors included Facebook, Tencent Holdings, Booking Holdings and Wirecard AG. No currency hedging continues across both of Insync's funds as Insync consider the main risks to the Australian dollar to be on the downside. |
| More Information |
