Insync Global Quality Equity Fund
FACTORS Operational Due Diligence Process
Australian Fund Monitors ("AFM") has conducted operational due diligence (AFM FACTORS) on Insync Fund Managers ("the Manager") and the Insync Global Quality Equity Fund. The following areas were reviewed and our findings on each section are included in this report:
- Management Company and Key Staff.
- Investment Strategy and Process.
- Risk Management
- Operational Procedures.
- Fees, Terms and Conditions.
AFM's due diligence on the Manager included extensive interviews with senior staff, directors and significant shareholders, document collection and verification where appropriate. The full results of AFM's findings are contained in the following AFM Factors Due Diligence Report. AFM FACTORS provides information and opinions without taking into consideration the financial position or objectives of individual investors and should be read after taking into account the disclaimer and terms and conditions on the www.fundmonitors.com website.
FACTORS Operational Due Diligence Score
| Weighting | Poor | Below Average | Approved | Commended | Highly Commended | |
|---|---|---|---|---|---|---|
| Management Company and Key Staff | 25% |  |
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| Investment Strategy and Process | 25% | |
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| Risk Management | 20% | |
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| Operational Procedures | 20% | |
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| Fees, Terms and Conditions | 10% | |
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| Overall Ranking | |
A ranking of Approved or above in each category indicates the minimum score required.
Ranking Description
The Manager and/or Fund have significant or structural issues.
The Manager and/or Fund have various issues which need to be resolved prior to achieving Approved.
The Manager and Fund meet relevant or appropriate standards.
The Manager and Fund meet or generally exceed relevant or appropriate standards.
The Manager and Fund consistently exceed relevant or appropriate standards.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Executive Summary
Established in July 2009 by Monik Kotecha, Chief Investment Officer, Insync is an independently owned global equity specialist based in Sydney, Australia. Insync believes that investing in a concentrated portfolio of highly profitable companies benefitting from global megatrends leads to superior returns over time. They do this through conservative stock selection from a select pool of exceptional global companies and by actively managing market risk and currency risk.
The fund aims to outperform the MSCI All Country World ex-Australia Net Total Return Index (in Australian Dollars) over a full market cycle. Insync invests in a concentrated portfolio of high quality companies that possess long 'runways' of future growth benefitting from Megatrends.
Management Company and Key Staff
Insync Funds Management, a global equity specialist based in Sydney, Australia, was established in July 2009. The company reflects strong commitment from its leadership, with director Monik Kotecha holding a significant stake. The investment team, led by Portfolio Manager Monik Kotecha, includes Senior Investment Analyst Mark Haet and three other analysts, two of whom joined in 2024. Kotecha, with over 33 years of experience, and Haet, with a similar tenure, bring substantial expertise to the team. Analyst Kiara Taylorwood-Roe focuses on ESG responsibilities. The team's remuneration combines salary with performance-based bonuses, aligning their interests with client performance. Insync's management is further bolstered by Chief Operating Officer Conor Byrne, who has 36 years of operational experience, and Grant Pearson, leading distribution and marketing with 37 years in the industry. This seasoned team supports Insync's disciplined investment process and client-focused approach.
FundMonitors.com views Insync Funds Management positively, noting that Monik Kotecha's personal investment in the fund aligns his interests with external investors, reinforcing his commitment to achieving the fund's mandate and performance goals. Despite a small team, the staffing is deemed adequate for the fund's current size and strategy. As the company grows, an additional or external director may be appointed to enhance board balance. The Risk Committee already benefits from external expertise, and the senior management's significant experience further strengthens the company. While Kotecha represents key person risk, this is mitigated by the experienced Senior Investment Analyst, Mark Haet.
Investment Strategy and Process
The Global Quality Equity Fund aims to outperform the MSCI All Country World ex-Australia Index in AUD over 5-year periods. Insync's strategy is based on the belief that only a select few companies with consistently high returns on capital and robust dividend growth are truly exceptional and likely to excel. High-quality stocks, in Insync's view, outperform over time, often due to mispricing of exceptional companies with enduring competitive advantages.
The investment process involves quantitative filtering using fundamental criteria, reducing a global universe of 40,000 companies to about 150-170. Qualitative analysis follows, relying on three key valuation tools: discounted cash flow, implied growth, and free cash flow. The final portfolio typically comprises 20 to 40 companies demonstrating high profitability, strong management, and long-term growth potential.
FundMonitors considers the investment process to be of high quality, sustainable for different market conditions and sizes, and aligned with the fund's philosophy. The use of quantative filters to reduce the investable universe ensures the team can be more focused on the qualitative aspects of the process.
Risk Management
Insync employs a comprehensive risk management approach, starting at the security level, where they assess factors like liquidity, political, sovereign, corporate governance, financial, interest rate, operational, regulatory, technological, and competitive risks. This allows them to construct realistic downside scenarios for each investment.
Portfolio-level risk management emphasises diversification and low correlation among individual investments to mitigate the impact of isolated adverse events. Position sizes are determined by conviction levels, with companies showing predictable earnings and higher ROIC receiving higher allocations. The overall philosophy of selecting quality companies aims to provide long-term outperformance and short-term downside protection. Various risk controls, including the number of stocks, individual stock weights, industry weights, emerging market exposure, cash allocation, and stop-loss limits, are in place to safeguard the portfolio. Insync utilises Bloomberg portfolio risk analytics and cross-correlation analysis to assess portfolio attributes and sensitivity to macroeconomic factors.
FundMonitors.com believes that the investment risk limits and monitoring are appropriate for the strategy.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Operational Procedures
Insync maintains robust operational procedures, including a Compliance Committee overseeing compliance with AFSL and ASIC requirements. The committee comprises two internal members and one external member, with Conor Byrne serving as the Compliance Officer. Pitcher Partners provides external audit services.
Their risk management strategy involves regular reviews, risk identification, analysis, evaluation, and resolution in consultation with legal and financial advisors. Personal transactions for listed and unlisted stocks require advance authorisation to avoid conflicts of interest. Employees can invest in unlisted companies with Compliance Officer approval, provided there's no conflict of interest, and advertising doesn't imply their Insync affiliation.
Trading and settlement risks are managed with the involvement of Insync's back-office provider and responsible entity. Three parties monitor these risks, ensuring trade confirmations and unsettled trade issues are promptly addressed.
FundMonitors.com notes the absence of a dedicated risk professional but considers the operational processes sound for the fund's size, with effective oversight from an external compliance committee. They express confidence in the portfolio checks and valuation policies.
Fees, Terms and Conditions
The fund charges an annual management fee of 0.98% of NAV, without a performance fee. A 0.2% buy/sell spread covers transaction costs. Realised income is distributed annually. Investors can enter and exit daily, with a minimum initial investment of AU$10,000 and an additional AU$1,000. The minimum withdrawal is AU$1,000.
The fund issues an annual performance report detailing recent and long-term performance, net returns, performance statistics, top holdings, strategy changes, and market outlook.
Insync Fund Managers holds AFSL 322891 for this Unit Trust domiciled in Australia, open to Wholesale & Retail investors. EQT serves as the Responsible Entity.
FundMonitors.com deems the fees and terms appropriate, with the manager absorbing typical investor costs. The liquid nature of large-cap global equities suggests ample capacity and low likelihood of redemption restrictions.
| Period | Returns | Volatility | ||
| Fund | Index* | Fund | Index* | |
| Oct 2024: | 2.47% | 2.83% | N/A | N/A |
| 3 Months: | 1.03% | 1.83% | N/A | N/A |
| 6 Months: | 6.10% | 9.18% | N/A | N/A |
| 1 Year: | 23.69% | 27.86% | 10.75% | 8.09% |
| 3 Years2: | 5.80% | 10.34% | 15.07% | 11.00% |
| 5 Years2: | 10.86% | 12.14% | 15.06% | 11.17% |
| 7 Years2: | 12.81% | 11.96% | 14.23% | 10.90% |
| Since Inception1,2: | 12.63% | 11.55% | 11.92% | 10.28% |
| Key Terms | |||
| APIR: | ETL5510AU | Status: | Open |
| Peer Group: | Equity Long - Large Cap - Global | Inception Date: | Jul 2018 |
| Strategy: | Equity Long | Style: | Growth |
| Geography: | Global | Domicile: | Australia |
| Investors: | Wholesale & Retail | Min. Investment: | AU$ 10,000 |
| Distributions: | Annually | Applications: | Daily |
| Fund Size: | AU$ 79.73m | Management Fee: | 0.98% |
| Manager FUM: | AU$ 170.21m | Performance Fee: | 0.00% |
Cumulative Returns Fund Index
Insync Global Quality Equity Fund - Cumulative Performance vs All Countries World Index (AUD)
Drawdowns Fund Index
Drawdown%
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Management Company & Key Staff
Insync Funds Management is a global equity specialist established in July 2009 in Sydney, Australia. Monik Kotecha as a director holds 31% and 14.2% is distributed among management in the company, reflecting their strong ongoing commitment to Insync.
The investment team comprises five members, led by Portfolio Manager Monik Kotecha assisted by Senior Investment Analyst Mark Haet and three other analysts, two having been appointed in 2024. Kotecha has 33+ years of global equity management experience, including roles in London, New York, and Sydney. Mark Haet, Senior Investment Analyst, also brings 33+ years' industry experience and has held portfolio management positions internationally. Analyst Kiara Taylorwood-Roe focuses on Insync's ESG responsibilities and provides general analytical support along with the broader team. Monik makes the final decision on portfolio composition with this following close consultation with the investment team, within its disciplined process, on the investment merits and risk assessment of the company to ascertain position size and its impact on the overall risk of the portfolio.
The policy of Insync is to remunerate investment team members through a combination of salary and performance-based bonus, providing the potential for each team member to earn in excess of what a large institutional based fund manager would pay. The benefits of a performance based bonus is that it is aligned to the performance of the clients and over time will represent a sizeable portion of the total compensation.
Key Staff
Chief Investment Officer Monik Kotecha has over 33 years of funds management experience in international and Australian equity markets. He has worked in London, New York and Sydney, including over seven years as a Senior Portfolio Manager at Investors Mutual Limited, five years with BT Funds Management Limited and three years with the Abu Dhabi Investment Authority. At BT Kotecha was responsible for managing the institutional European Equity Fund, Global Smaller Companies Equity Fund, sat on the Asset Allocation Committee, and managed the African component of the Emerging Markets Fund. At Investors Mutual Limited Kotecha was a Senior Portfolio Manager of the Australian Share Fund and a key member of the Investment Team which was awarded Fund Manager of the Year Australian Equities in 2002 and 2003 by Money Management.
Byrne has 36 years' experience managing all aspects of fund management operations at some of Australia's leading investment firms. They included Treasury Group (9 years), Investors Mutual (8 years), Computershare (3 years), UBS (8 years) and Deloitte (4 years) across both developing and mature phases of their growth. Responsibilities in these roles' spanned risk management, compliance, finance, legal, HR, IT, Back and Middle office operations. Covering both listed and unlisted firms his roles included COO, CFO, Director, and Chairman. This provides a breadth and depth of understanding that boost Insync's operating capabilities.
Haet's funds experience was garnered in international equities in New York and Sydney. His PM roles spanned Ellerston Capital, QBE Insurance, Kingdon Capital, and BT Funds Management. Mark's 13 years as Ellerston's PM in their Gems Long Short Fund adds a valuable dimension to Insync's evaluation of companies and markets. Prior to this, Mark managed QBE's UK equity portfolios, Kingdon Capital's $3bn+ hedge fund in New York as well as their Latin American and EEM portfolios. Mark's time at BT also saw him managing their Latin American equity exposure. Mark started his career in 1986 at Prudential Assurance in Sydney as an Australian equities' analyst. Mark holds a Bachelor of Arts in Economics, and magna cum laude, from Duke University. He is a CFA and an Associate of the Securities Institute of Australia.
Kiara graduated from The University of Sydney with a degree in Economics, majoring in Econometrics and Agriculture, Resource and Environmental Economics. Kiara's role focuses upon Insync's responsibilities within Environmental, Social and Governance (ESG) and provides general analytical support to the broader team. Insync deliberately chose a person from the millennial generation to add a useful dimension to the team's ESG deliberations.
Pearson's experience spans Australasia and North America, across both the Buy and Sell sides of the industry. Roles include Senior VP for Merrill Lynch Private International, Head of Advice for AMP FP, National Sales Head for ING (Aust), Head of Investments for ABN AMRO (Aust), Strategy Head for AXA Asia Pacific and various general manager roles running funds management and advice businesses within ING and MLC/Lend Lease. He also has experience and skills in compliance, marketing and product/platform design. His qualifications include a diploma in financial planning, Series 7 & 66 (FINRA -USA) and as an ASIC registered Responsible Officer and a Key Person for several AFSLs.
FundMonitors.com Comment
Kotecha is invested in the fund on the same terms as external investors. Combined with his share-holding this adds to the conviction that he is dedicated to ensuring the Fund meets its mandate and performance goals, adding to team stability.
Although limited in numbers, staffing levels are sufficient given the current size and strategy of the Fund.
As the company grows we anticipate the appointment of an additional or external director to provide further balance to the board, although we note that the Risk Committee has an external member, and the experience of the senior management is significant.
CIO Monik Kotecha represents key person risk, although from a portfolio management perspective this is mitigated by the experience of Senior Investment Analyst, Mark Haet.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Investment Strategy & Process
The Fund's objective for this class is to outperform the MSCI All Country World ex-Australia Net Total Return Index in Australian dollars over rolling 5 year periods.
The central approach of Insync's investment strategy for the Global Quality Equity Fund is underpinned by the following philosophies:
- only a small number of companies are truly exceptional with persistently high returns on invested capital and consistent growth in dividends and/or share buybacks,
- high quality stocks outperform over time,
- exceptional companies are often mispriced as the market underestimates the duration of their competitive advantage.
Insync's investment process can be broadly broken into two distinct parts: Firstly, a series of quantitative filters using Bloomberg's database of all global companies, and secondly a detailed qualitative analysis of the remaining targets, including company visits and interviews with management.
1. Quantitative Filters:
The Fund's portfolio is constructed from a global universe of approximately 40,000 companies. Extensive screening using a series of fundamental filters reduces the investable universe to around 150-170 companies which meet specific criteria. These screens are as follows:
- Profitability - High return on capital
- Balance sheet - flexibility to take advantage of growth opportunities
- Shareholder friendly - growth in dividends and/or buybacks
- Valuation - trading at a discount to Insync's assessed valuation
Concurrently with the screening process, Insync focuses on global
megatrends to identify companies that will significantly benefit from
capturing structural growth which looks beyond the business cycle to
exploit forward looking opportunities.
2. Qualitative Analysis:
Data from the quantitative screening process, plus company meetings and presentations provide the basis for the second stage of fundamental analysis. Focusing on absolute rather than relative valuations to assess downside risk, the team consider three major tools to value each potential investment.
- Discounted Cash Flow Model: Insync have developed their own proprietary returns on invested capital DCF approach. Research has shown that traditional DCF analysis have a high forecasting error whereas high returns on capital are more stable and therefore less prone to forecasting error.
- Implied Growth Model: To calculate how much future earnings growth is required to justify the current share price.
- Free Cash Flow: High levels of free cash flow after all operating expenses and capex not only indicate a company's financial strength, but also the ability to expand. Insync prefer this measure to the more widely used P/E ratio.
The final portfolio typically consists of 20 to 40 companies which exhibit very high levels of profitability, excellent management credentials and long term market expansion potential.
FundMonitors.com Comment
FACTORS considers the investment process to be of a high quality and sustainable both in terms of market conditions and market size.
The Fund’s investment philosophy is clear and intuitive, and the strategy and processes used to implement it are in line with the overall philosophy.
The use of quantative filters to reduce the investable universe ensures the team can be more focused on the qualitative aspects of the process.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Risk Management
Insync undertake risk management at the security level. Key specific risk factors they evaluate include liquidity risk, sovereign/political risk, corporate governance risk, financial risk (i.e. leverage), interest rate risk, operational risk, regulatory risk, technological risk and competitive risk. Understanding these risk areas and their impact on both stocks and Megatrends allows Insync to construct realistic downside scenarios and assess the degree of risk in each investment.
At the portfolio level, Insync strive for diversification and non-correlation between individual investment cases to reduce the impact of adverse idiosyncratic events on overall performance. Position size is determined by the level of conviction held for each stock. Companies with the most predictable earnings and higher ROIC are awarded the highest quality rank. This is then combined with an assessment of valuation. Companies with the most predictable earnings, and therefore less risk of a significant fall in earnings, can have a position size of 5-10%, provided there is a high degree of undervaluation. Companies that have a lower quality ranking within Insync's quality universe can only have a maximum weight of 3-4%, provided there is a sufficient degree of undervaluation.
The overall philosophy and process of selecting companies with quality attributes (high persistent ROIC, strong cash flows, larger capitalisation) results in portfolios which display characteristics which have been shown to provide outperformance of market cap indices over time, while also providing downside protection in the shorter term. As well as this, there are a number of portfolio risk controls that aim to ensure sufficient diversification of the portfolio and protect against absolute loss of capital, namely:
Number of stocks - 20-40
Individual stock weight - 0-10%
Individual GICS Industry weight - 0-30%
Emerging markets - 0-30%
Cash - 0-5%
Stop/Loss Limit - Soft (relative) - 15%
Stop/Loss Limit - Hard (relative) - 25%
Insync utilises the Bloomberg portfolio risk analytics function to assess the attributes of the portfolio as well as understanding the sensitivity to the portfolio to major macroeconomic factors. Cross correlation analysis is also assessed to drive diversification across the sectors Insync typically invest in as part of their key philosophy.
FundMonitors.com Comment
Investment risk limits and monitoring are appropriate for the strategy.
Sharpe Ratio Fund Index
Sharpe Ratio
| Key Statistics1 | ||
| Fund | Index* | |
| Sharpe: | 0.86 | 0.89 |
| Sortino: | 1.41 | 1.42 |
| Best Month: | 9.61% | 8.06% |
| Worst Month: | -9.17% | -8.08% |
| Average Monthly Return: | 1.05% | 0.96% |
| Up-Capture Ratio: | 89% | N/A |
| Down-Capture Ratio: | 92% | N/A |
| Maximum Drawdown: | -28.54% | -16.02% |
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Operational Procedures
Insync has a Compliance Committee which monitors the businesses compliance with its AFSL and ASIC requirements such as capital adequacy and professional indemnity cover.
The Compliance Committee has two internal members (Monik Kotecha and Conor Byrne) and one external member (Roger Campbell from Business Operations and Compliance Systems). Conor Byrne holds the position of Compliance Officer and reports operational and compliance issues where appropriate to the Compliance Committee. Business Operations and Compliance Systems is responsible for ensuring that Insync meets its compliance requirements in accordance with government regulations and licensing laws.
Pitcher Partners provides external audit. The risk management strategy of Insync consists of a regular review process of establishing the context, identifying the risks involved, analysing the risks, evaluating the risks and assessing the risks with a view to their resolution. This process occurs in an environment of regular monitoring, communication and consultation between Insync and its legal and financial advisers.
The key purpose of the risk review process is to:
- Regularly review identified and potential new risks confronting Insync,
- Analyse and assess the potential impact of these risks.
- Agree strategies and actions to avoid, reduce, transfer or accept the risks and manage accordingly.
- Confirm compliance with implemented risk control measures to mitigate occurrence of risks.
In order to avoid conflicts of interest, all personal transactions for both listed and unlisted stocks currently held in any portfolio managed by Insync must be authorised in writing in advance by the Compliance Officer. Where appropriate, authorisations may be specifically made valid only for the day they are signed. In this case, if the proposed transaction is not executed the same day, a further authorisation will be required for the day of execution.
Employees may invest in an unlisted company, provided:
- The Compliance Officer has provided written confirmation in advance that no conflict of interest exists between the employee's professional duties and status as a private shareholder; and
- The employee ensures that any advertising by the unlisted company does not make any use, directly or indirectly of the fact that the employee is employed by Insync, thereby preventing any confusion about the role of Insync
Trading and settlement risk is managed in conjunction with Insync's back-office provider and our responsible entity who both independently check all trades for settlement and counterparty risk. As these functions are outsourced by Insync they have 3 parties effectively monitoring these risks. Once trades are implemented trade confirmations are sent separately to Insync and the back office provider. These trades are then checked by the back office provider with the trade uploaded files by Insync to ensure there are no discrepancies. Any potential risks around unsettled trades are followed through by the RE directly with the custodian. This is then checked the following morning for consistency by the fund manager in the updated valuation send through from the middle office
| Service Providers | |||
| Trustee/RE: | EQT Responsible Services Entity Limited | ||
| Custodian: | Mainstream Fund Services Pty Limited | ||
| Administrator: | Mainstream Fund Services Pty Limited | ||
| Auditor: | Pitcher Partners | ||
| Legal Services Provider: | Launch Advisory | ||
| Prime Broker: | Not Applicable | ||
FundMonitors.com Comment
There is no dedicated risk professional, which is not unusual in a team of this size. While Byrne’s role encompasses risk control, it is not considered an issue at current levels of FUM and firm size.
Overall FACTORS would judge the current structures and process around operational processes as sound and appropriate given the Fund’s size. The issues noted are unlikely to create any significant risk to the Fund.
FACTORS is confident that the daily portfolio checks as well as valuation policies are appropriate, and in line with industry practice.
FundMonitors acknowledges that the external compliance committee's oversight of the fund provides a robust means of mitigating the risk of compliance breaches.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Fees, Terms & Conditions
Terms & Fees
Management fees are 0.98% of Net Asset Value (NAV), payable annually. The manager does not charge a performance fee.
There is a buy/sell spread of 0.2% on entry and exit to cover transaction costs. Realised income is distributed annually.
Insync Global Quality Equity Fund - Performance Fee/Management Fee
Investments and redemptions can be made daily, with a minimum initial investment amount of AU$10,000 and a minimum additional investment amount of AU$1,000. The minimum withdrawal amount is AU$1,000.
Investor Relations
The fund issues a annually performance report to investors which includes the following key information:
- Recent performance
- Long-term performance
- Net returns
- Performance statistics (e.g. Sharpe Ratio, Standard Deviation, etc.)
- Top holdings
- Strategy changes
- Market outlook
Structure & Compliance
The fund is a Unit Trust domiciled in Australia and is open to Wholesale & Retail investors. Insync Fund Managers holds AFSL 322891.
Distribution & Marketing
EQT is the fund's Responsible Entity.
NAV and performance is provided and confirmed monthly by the fund's administrator, Mainstream Fund Services.
FundMonitors.com Comment
FACTORS views the Fund’s Fees, Terms and Conditions as appropriate and equitable, particularly the Manager absorbing fund costs normally charged to investors. Redemption terms are daily and are paid within 10 business days.
The extremely liquid nature of the underlying investments - large cap global equities - provide confidence that the Fund’s capacity is significant and redemption restrictions are unlikely.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Performance Summary as at Oct 2024
The Insync Global Quality Equity Fund has a track record of 15 years and 1 month and has outperformed the All Countries World (AUD) benchmark since inception in October 2009, providing investors with an annualised return of 12.63% compared with the benchmark's return of 11.55% over the same period.
On a calendar year basis, the fund has experienced a negative annual return on 2 occasions in the 15 years and 1 month since its inception. Over the past 12 months, the fund's largest drawdown was -5.12% vs the index's -2.66%, and since inception in October 2009 the fund's largest drawdown was -28.54% vs the index's maximum drawdown over the same period of -16.02%. The fund's maximum drawdown began in January 2022 and lasted 2 years, reaching its lowest point during September 2022. The fund had completely recovered its losses by January 2024.
The Manager has delivered these returns with 1.64% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 three times over the past five years and which currently sits at 0.86 since inception. The fund has provided positive monthly returns 84% of the time in rising markets and 19% of the time during periods of market decline, contributing to an up-capture ratio since inception of 89% and a down-capture ratio of 92%.
Annual Returns Fund Index
Annual Returns %
Standard Deviation Fund Index
Annual Standard Deviation
Quintile Ranking vs. Equity Long - Large Cap - Global as at October 2024
The performance of the Insync Global Quality Equity Fund ranked it in the first quintile for Total Return and second quintile for Sharpe and Sortino over 7 years.
Over the past 12 months, the fund has risen by +23.69% compared with the peer group which has returned an average of +26.23%, for a difference of -2.54%.
The fund's returns over the past 12 months have been achieved with a volatility of 10.75% vs the peer group's average volatility of 11.66%. The annualised volatility of the fund's returns since inception in October 2009 is 11.92% vs the peer group's 14.33%. Over all other periods, the fund's volatility relative to the peer group has been varied.
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Performance Review (Peer Group: Equity Long - Large Cap - Global)
The Insync Global Quality Equity Fund rose by +2.47% in October, a difference of -0.36% compared with the All Countries World (AUD) benchmark which rose by +2.83%. Over the past 12 months, the fund's best monthly return was +6.5% compared with the benchmark's best return of +5.32%, and its worst monthly return was -5.12% vs the benchmark's worst return over the same period of -2.66%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 5.50 | 6.50 | 0.59 | -5.12 | 1.40 | 1.37 | 2.17 | -1.09 | -0.32 | 2.47 | NA | NA | 13.78 |
| 2023 | 4.49 | 2.29 | 6.06 | 2.55 | 0.65 | 3.35 | 1.68 | 0.96 | -3.69 | -1.14 | 5.76 | 2.79 | 28.49 |
| 2022 | -6.94 | -9.17 | -2.15 | -5.90 | -3.39 | -3.19 | 7.67 | -4.59 | -4.44 | 5.77 | 4.78 | -5.38 | -25.07 |
| 2021 | -3.63 | 0.79 | 2.95 | 5.59 | -0.95 | 9.61 | 4.26 | 2.63 | -5.72 | 1.59 | 7.74 | 0.35 | 27.03 |
| 2020 | 5.23 | -2.94 | -7.89 | 6.14 | 7.39 | -1.94 | 1.98 | 6.73 | 0.33 | -3.14 | 3.73 | 0.05 | 15.43 |
| 2019 | 4.63 | 5.38 | 2.16 | 7.35 | -2.25 | 6.66 | 4.17 | 2.30 | -1.70 | -0.33 | 4.62 | -0.35 | 37.24 |
| 2018 | 3.44 | 1.57 | -0.77 | 2.78 | 2.67 | 3.57 | -0.49 | 5.88 | -0.82 | -6.50 | -3.08 | -2.81 | 4.87 |
| 2017 | -0.79 | 2.55 | 2.72 | 5.52 | 5.91 | -2.86 | -1.32 | 1.23 | 0.99 | 4.40 | 2.07 | -1.44 | 20.19 |
| 2016 | -0.85 | -1.68 | -2.11 | 1.20 | 6.33 | -2.45 | 0.84 | 0.37 | -1.34 | -3.77 | 0.83 | 3.31 | 0.27 |
| 2015 | 1.68 | 5.88 | -0.38 | -0.51 | 3.62 | -2.57 | 8.77 | -3.55 | -2.01 | 5.79 | -2.54 | -1.54 | 12.43 |
| 2014 | -1.04 | 2.91 | -2.75 | -0.80 | 2.00 | -0.58 | -0.17 | 0.94 | 2.85 | 0.47 | 6.59 | 2.83 | 13.72 |
| 2013 | 4.40 | 2.30 | 1.67 | 2.66 | 5.85 | 1.13 | 5.61 | -2.08 | -0.67 | 2.54 | 5.29 | 4.25 | 37.97 |
| 2012 | -2.90 | 4.42 | 6.96 | -0.02 | -0.86 | -0.66 | -0.07 | 2.74 | 1.40 | -0.76 | 1.80 | 0.84 | 13.26 |
| 2011 | 1.08 | 0.85 | -0.35 | 1.00 | 3.97 | -1.63 | -1.34 | 0.17 | 3.61 | -1.56 | 3.92 | 1.38 | 11.45 |
| 2010 | -1.54 | -0.07 | 1.15 | -3.38 | 2.69 | 0.74 | -1.75 | 1.90 | -2.14 | 0.81 | -1.02 | -2.15 | -4.84 |
| 2009 | NA | NA | NA | NA | NA | NA | NA | NA | NA | -1.32 | 0.51 | 2.67 | 1.82 |
Only ten years of data shown. Click here to view all data.
General Notes
Annual Returns
Over the past 12 months, the fund has risen by +23.69% compared with the benchmark which has returned +27.86%, for a difference of -4.17%. Since inception in October 2009, the fund has returned +12.63% per annum, a difference of +1.08% relative to the benchmark which has returned +11.55% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $601. The same amount invested in the benchmark over the same period would have become $520.
Annual Returns %
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 10.75% vs the index's 8.09%. The annualised volatility of the fund's returns since inception in October 2009 is 11.92% vs the index's 10.28%. Over all other periods, the fund's returns have been more volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 1.65 for performance over the most recent 12 months to a low of 0.26 over the latest 36 months, and is 0.86 for performance since inception. By contrast, the All Countries World (AUD) Index's Sharpe for performance since October 2009 is 0.89.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in October 2009 in the months where the market was positive, the fund has provided positive returns 84% of the time, contributing to an up-capture ratio for returns since inception of 89.16%. Over all other periods, the fund's up-capture ratio has ranged from a high of 127.65% over the most recent 60 months to a low of 96.05% over the latest 12 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in October 2009 in the months where the market was negative, the fund has provided positive returns 19% of the time, contributing to a down-capture ratio for returns since inception of 91.71%. Over all other periods, the fund's down-capture ratio has ranged from a high of 156.3% over the most recent 12 months to a low of 106.32% over the latest 24 months.
Average Return in +ve Market %
Average Return in -ve Market %
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 3.01 for performance over the most recent 12 months to a low of 0.27 over the latest 36 months, and is 1.41 for performance since inception. By contrast, the All Countries World (AUD) Index's Sortino for performance since October 2009 is 1.42.
Drawdown
Over the past 12 months, the fund's largest drawdown was -5.12% vs the index's -2.66%, and since inception in October 2009 the fund's largest drawdown was -28.54% vs the index's maximum drawdown over the same period of -16.02%.
Sortino Ratio
Drawdown%
Return in Index's 10 Best & 10 Worst Months %
Return in Index's 10 Best & 10 Worst Months %
Distribution of Returns
Insync Global Quality Equity Fund - Distribution of Returns
Up-capture vs Down-capture
Standard Deviation vs Return
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Advanced Analytics
| AFM ADVANCED ANALYTICS | Insync Global Quality Equity Fund:
Oct 2009
-
Oct 2024 Index: All Countries World Index (AUD) |
|||||
|---|---|---|---|---|---|---|
| Annual Returns and Analytics | 12 months | 24 months | 36 months | 48 months | 60 months | Inception |
| Fund Annual Return per annum | 23.69% | 20.39% | 5.80% | 9.62% | 10.86% | 12.63% |
| Index Annual Return per annum | 27.86% | 19.50% | 10.34% | 14.58% | 12.14% | 11.55% |
| Fund Cumulative Return (on $100) | $123.69 | $144.94 | $118.44 | $144.42 | $167.45 | $601.09 |
| Index Cumulative Return (on $100) | $127.86 | $142.81 | $134.35 | $172.34 | $177.32 | $520.11 |
| Fund Annualised Standard Deviation | 10.75 | 11.06 | 15.07 | 14.82 | 15.06 | 11.92 |
| Index Annualised Standard Deviation | 8.09 | 9.31 | 11.00 | 10.65 | 11.17 | 10.28 |
| Fund Sharpe Ratio | 1.65 | 1.39 | 0.26 | 0.55 | 0.64 | 0.86 |
| Index Sharpe Ratio | 2.58 | 1.56 | 0.70 | 1.14 | 0.93 | 0.89 |
| Fund Sortino Ratio | 3.01 | 2.30 | 0.27 | 0.73 | 0.89 | 1.41 |
| Index Sortino Ratio | N/A | 2.73 | 1.05 | 1.93 | 1.39 | 1.42 |
| Monthly Returns and Analytics | 12 months | 24 months | 36 months | 48 months | 60 months | Inception |
| Fund Average monthly return | 1.79% | 1.56% | 0.47% | 0.77% | 0.86% | 1.05% |
| Index Average monthly return | 2.07% | 1.50% | 0.82% | 1.14% | 0.96% | 0.96% |
| Fund % of Positive Months | 75% | 75% | 61% | 65% | 63% | 60% |
| Index % of Positive Months | 83% | 75% | 61% | 67% | 63% | 62% |
| Fund Average +ve Return | 3.17% | 3.08% | 3.50% | 3.49% | 3.70% | 3.30% |
| Index Average +ve Return | 2.91% | 2.85% | 3.10% | 3.02% | 3.04% | 2.84% |
| Fund Best Month | 6.50% | 6.50% | 7.74% | 9.61% | 9.61% | 9.61% |
| Index Best Month | 5.32% | 5.32% | 6.05% | 7.49% | 7.49% | 8.06% |
| Fund Average -ve Return | -2.18% | -2.79% | -4.04% | -3.93% | -3.78% | -2.26% |
| Index Average -ve Return | -1.99% | -2.43% | -2.62% | -2.49% | -2.50% | -2.17% |
| Fund Worst Month | -5.12% | -5.38% | -9.17% | -9.17% | -9.17% | -9.17% |
| Index Worst Month | -2.66% | -4.29% | -5.21% | -5.21% | -8.08% | -8.08% |
| Fund Largest Drawdown | -5.12% | -5.38% | -28.54% | -28.54% | -28.54% | -28.54% |
| Index Largest Drawdown | -2.66% | -6.22% | -16.02% | -16.02% | -16.02% | -16.02% |
| Fund Downside Deviation | 5.70 | 6.43 | 10.34 | 9.59 | 9.53 | 6.79 |
| Index Downside Deviation | 3.44 | 5.13 | 6.68 | 5.97 | 6.94 | 6.07 |
| Performance in Positive Markets | 12 months | 24 months | 36 months | 48 months | 60 months | Inception |
| Number of months market was positive | 10 | 18 | 22 | 32 | 38 | 113 |
| Fund % positive months, when market positive | 90% | 94% | 95% | 91% | 92% | 84% |
| Cumulative Fund return in positive market | 31.80% | 69.81% | 109.09% | 170.27% | 269.15% | 1994.18% |
| Cumulative Index return in positive market | 33.10% | 65.62% | 95.17% | 158.25% | 210.85% | 2236.74% |
| Up Capture Ratio | 96.05% | 106.38% | 114.62% | 107.60% | 127.65% | 89.16% |
| Performance in Negative Markets | 12 months | 24 months | 36 months | 48 months | 60 months | Inception |
| Number of months market was negative | 2 | 6 | 14 | 16 | 22 | 68 |
| Fund % positive months, when market negative | 0% | 17% | 7% | 13% | 14% | 19% |
| Cumulative Fund return in negative market | -6.15% | -14.64% | -43.35% | -46.57% | -54.64% | -71.30% |
| Cumulative Index return in negative market | -3.94% | -13.77% | -31.16% | -33.26% | -42.96% | -77.74% |
| Down Capture Ratio | 156.30% | 106.32% | 139.11% | 139.99% | 127.20% | 91.71% |
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Research & Scoring Methodology
AFM FACTORS Process and Methodology:
The processes involved in AFM FACTORS Research include:
- Extensive interviews with the directors, key staff and service providers of the Management Company and the fund.
- Objective analysis of the responses to interviews and questionnaires regarding the Fund's Investment Strategy & Risk Processes.
- Objective analysis of the responses to interviews and questionnaires regarding the Operational Processes, Compliance and Risks of the Management Company and Fund.
- Analysis of the Fund's documentation, Fees, Terms, Conditions and Investor Relations.
- Quantitative analysis of the Fund's track record to provide key performance and risk indicators.
The quantitative approach to the FACTORS reports is adjusted following qualitative assessment by AFM's Investment Committee depending on the level of conviction attached to each score. This score is weighted and calculated as a percentage in the tables below.
FACTORS Rating, Weightings and Scoring Methodology
| Category and Factors considered | Weighting to Total | |
|---|---|---|
| 1 | Management Company & Key Staff: Includes board composition and independence; meetings and processes; relevance, depth and experience of key staff; overall staffing levels; staff turnover; roles and separation of duties; equity in management company; co-investment in the fund. |
25% |
| 2 | Investment Strategy & Process: Edge; logical and clear; difference; research sources; consistency; liquidity; processes; derivatives; currency; concentration; |
25% |
| 3 | Risk Management: Separation of risk management; risk limits and processes; risk committee. |
20% |
| 4 | Operational Procedures: Back office; trade processes; compliance; counter parties; IT systems; disaster recovery; insurance; AML; service providers. |
20% |
| 5 | Fees, Terms & Conditions: Liquidity; investment and redemption terms; management fees; performance fees; HWM; hurdles; reporting; transparency. |
10% |
| Total | 100% |
Flags
FACTORS reports use a series of Comments boxes with Flags to denote areas which are believed to be of interest or relevance to Advisors and Investors. These are provided as a guide only and do not guarantee that the points raised or opinions noted (red or yellow flag) are the sole risks involved, or that a positive comment (green flag) indicates that there is no risk involved in the investment.
| Denotes an area which FACTORS Research considers to be positive, or exceeds general industry standards, taking into account the Manager's size or Fund strategy. | |
| Denotes an area that investors should be aware of, but is not considered to be either a major issue, or is appropriate given the circumstances. | |
| Denotes an area or factor which is considered to be a serious weakness, or might cause investors to avoid the Manager or Fund. |
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
Disclaimer
About Australian Fund Monitors
Australian Fund Monitors (AFM) provides information and research on managed funds either managed from, or available in Australia, with a focus on actively managed funds, including those in the Absolute Return and Alternative sector. AFM was established in 2006, and holds AFS Licence 324476 to provide general advice to wholesale investors only.
AFM Information and Research Services
AFM FACTORS Research
Disclaimer & Copyright
Disclosure of Interest
Copyright Protection
No Warranties
Copyright Australian Fund Monitors Pty Ltd (AFM) ACN 122226724 AFSL 324476. No part of this report may be reproduced without permission. This report was prepared in accordance with ASIC's RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees, and recipients should consider their own financial circumstances and objectives prior to making any decision. The content is updated monthly and only the current version should be used. Past returns do not indicate future performance.
FundMonitors.com has conducted a combination qualitative and quantitative assessment of the Insync Global Quality Equity Fund and considers the fund a suitable investment in a diversified portfolio for investors seeking exposure to global equities, subject to the individual circumstances and objectives of the investor.
Fund performance varies over time. The report should be read in conjunction with the performance analysis on pages 9-13.