I wanted to bring to your attention the Insync Global Capital Aware Fund which ranked highly in the recent Morningstar performance tables (in 4th place for performance of +19.60% over one year and +16% over 3 years). The Fund has a clear focus on megatrends and managing tail risk. Over the past 3 years the fund has captured 100% of the upside in rising equity markets but only 52% of the downside in falling markets.
The fund has outperformed its stated objectives over the past three years with investors in the fund benefitting from rising markets through its future-focused stock-picking process whilst having downside protection in times of high volatility and falling markets through the use of index put protection.
Investing in businesses with a 10+ year timeframe and the highest quality businesses has Insync often at odds in its holdings with other global equities manager line. It’s why Insync investors have benefitted from strong returns across most periods, and especially in a crisis like this.
The fund is today well positioned for a recovery in global economies and equity markets. Two quality contrarian examples of companies that we believe are strongly positioned for a recovery are Booking Holdings and Walt Disney.
- Booking Holdings – Travel is still a global megatrend but clearly in the short term the industry is directly in the cross hairs of this crisis. We believe the megatrend will strongly reassert itself but obviously certain sub-segments will be structurally impacted for a long time, such as the cruise industry, whilst others will come out stronger, such as the online travel agents. More information can be found on the following link: https://www.insyncfm.com.au/post/media-release-booking-holdings-ideally-positioned-for-the-inevitable-recovery-in-travel
- Disney is not only well positioned for a recovery but is likely to consolidate its position as a dominant media business. Its new streaming service, Disney+ recently passed 50m subscribers worldwide years ahead of schedule. Disney’s result is significantly ahead of the company’s target of 60-90m by 2024 and positions them in an even stronger position. Their unmatched brands and scale as theme parks and cinemas start to reopen their doors are also big drivers.
Mr Monik Kotecha
CIO
Insync Funds Management