- Insync has over 80% put protection over its portfolio as we enter the later stages of a bull market with increased risks of much higher volatility to the downside
- Insync also have the view that there is further downside risk to the Australian dollar, particularly versus the $US and the fund continues to remain unhedged
Insync’s Global Titans Fund has for a while maintained a high level of protection that benefits unit holders in the event the market volatility significantly increases to the downside. The level of protection has been increased as markets have become more extended. This has been demonstrated on two previous occasions when the fund generated positive returns when the market went through a corrective phase.
Both in 2011 and 2012 the fund generate positive returns when the global markets (measured by the MSCI AC World ex-Aust NTR –AUD) fell -12% and -6% respectively.
“We believe that as we enter the later stages of a multi-year bull market, it is important to protect our unit holders from any sudden sharp falls in global markets.
“With the protection in place we are able to protect capital, cushioning the downside, and also be able to use the cash from the protection to purchase assets at much cheaper levels when fear enters the market.
Insync also have the view that there is further downside risk to the Australian dollar, particularly versus the $US and the fund continues to remain unhedged. The Australian dollar continues to remain above its long term average with the fundamentals continuing to improve in the US relative to Australia,” said Monik Kotecha, Chief Investment Officer, Insync Funds Management.
Media contact
Monik Kotecha
Chief Investment Officer
Insync Funds Management
02 9216 2903
mkotecha@insyncfm.com.au