Download Media release - Insync Funds Management

 Media release 005
3 March 2016
Australian-based international equities fund generated a positive return in
January while broad MSCI index was down -3.3% in January
Insync Global Titans Fund deploys downside protection in the form of buying
out-of- the-money index puts (with 60% net asset value covered using index puts
for Jan.)
The Insync Global Titans Fund is focused on delivering consistent returns with active
management of downside risk.
“The Global Titans fund’s objectives are to provide equity type returns over the long
term and to provide some downside protection for investors in the event of a significant
correction in the markets.
“We try to avoid a major catastrophe which can be devastating to investors as was seen
in 2008/9,” said Monik Kotecha, CIO, Insync Funds Management.
The main risk management tool Insync utilises to manage the downside protection is
the use of a dynamic put protection strategy. The Fund deploys downside protection in
the form of buying out-of-the-money index puts. The purpose is to cushion the fund from
significant losses in the market as witnessed by our significant outperformance in 2011
and 2012.*
In fact, when most of our peers fell during those periods the fund achieved positive
returns. The Fund had around 60% of the net asset value covered on a notional basis
using index puts as at the end of January.
January proved to be a very volatile month and whilst we did not see a catastrophic fall
in the markets the fund performed in line with our expectations when significant
downside volatility occurred. The fund generated a return of a +0.2% whilst the broad
MSCI index was down -3.3%.
*Table showing Insync outperformance during 2011 and 2012 with the use of index puts
to protect against downside movements in portfolio value
Media release Media contact
Mr Monik Kotecha
CIO
Insync Funds Management
(02) 9216 2977
0413 768 480
[email protected]
www.insyncfm.com.au
Distributed by Chris Hocking Strategies
0418 603 694
About Monik Kotecha
Monik Kotecha has 24 years of funds management experience in international and
Australian equity markets, including 15 years of managing top-quartile performing
portfolios. He has worked in London, New York and Sydney. He spent over 7
Media release years as a Senior Portfolio Manager at Investors Mutual Limited, 5 years with BT
Funds Management Limited and 3 years with the Abu Dhabi Investment Authority.
Monik was a Senior Portfolio Manager of the Australian Share Fund at Investors
Mutual Limited 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. Prior to this Monik was the lead portfolio manager for over 5 years
at BT Funds Management Limited on a number of international equity funds and
was a member of the asset allocation team. Monik spent the first few years in
funds management as a Pan European Equity analyst at the Abu Dhabi
Investment Authority in London.
Monik has considerable hedging and currency risk experience.
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 buybacks.
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