Insync has raised protection to cover majority of portfolio throughout 2014
Insync believe that investors should increasingly focus on preserving the return
Insync Fund Managers dynamically implements index put strategies to protect its international equities portfolio. As the markets have significantly recovered from their 2009 lows and valuations on many equity markets are high Insync believe that investors should increasingly focus on preserving the return.
With rising markets comes complacency reflected in the volatility of equity markets recently reaching record lows. Insync have taken advantage of the low volatility by increasing the level of protection.
“Our DNA is ‘growth with protection’ and we established a downside protection strategy when we started the Fund. During the last two periods of high volatility, during the EU crisis and US debt debacle, the equity markets fell sharply whilst the Insync’s Global Titans Fund increased in value.
“Unlike passive funds, we concentrate on truly “exceptional” global companies that constitute only a small part of any major index and not generally available in Australia,” said Nitesh Patel, Portfolio Manager at Insync.
Insync seeks ‘exceptional’ companies that have resilient business models and consistently provide:
- High ROIC
- Highly visible and low volatile earnings stream
- Resilient and dominant market positioning
- Growth potential through innovation or new markets
- Strong free cash flow yield.
- Strong shareholder yield and focus of consistent and growing dividends/buybacks
The favoured sectors for Insync include growth opportunities in:
- Global healthcare
- Information technology
- Global consumer brands
- Media – Pay TV and content
“The arguments for including international equities in a portfolio is not only based on diversification for its own sake but also to access sectors that are not available in Australia.
“A relatively strong currency, due partly to the yield differential with the major economies, has continued to hurt he Australian economy. However it does offer investors the opportunity to buy quality offshore assets at attractive prices,” said Mr Patel.
Media contact
Nitesh Patel
Portfolio Manager
Insync Funds Management
02 9216 2930
npatel@insyncfm.com.au
About Insync Fund Managers
Insync manages a concentrated, large cap global equity fund incorporating downside protection strategies and active currency management.
The fund is managed conservatively, with an absolute return focus, given that the key to compounding strong long term returns is to minimise drawdowns.
The stocks that Insync focuses on are exceptional global businesses with high returns on invested capital, strong free cash flow generation, solid balance sheets and a track record of returning cash to shareholders through growing dividends and/or share buy-backs.