Insync said that by implementing its index put strategy, it has been able to protect its international equities – something that has allowed its Titans Fund to increase in value during the European sovereign debt crisis and US debt “debacle”.
“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,” Insync portfolio manager Nitesh Patel said.
“Unlike passive funds, we concentrate on truly ‘exceptional’ global companies that constitute only a small part of any major index and [are] not generally available in Australia,” he said.
Insync said it seeks “exceptional” companies that have a resilient business model and consistently provide high return on invested capital, highly visible and low volatile earnings stream and growth potential through innovation or new markets.
Insync also said it looks for companies that provide strong free cash flow yield, strong shareholder yield, and focus on consistent and growing dividends.
“The arguments for including international equities in a portfolio [are] not only based on diversification for its own sake but also to access sectors that are not available in Australia,” Mr Patel said.
“A relatively strong currency, due partly to the yield differential with the major economies, has continued to hurt the Australian economy,” he said.
“However, it does offer investors the opportunity to buy quality offshore assets at attractive prices.”
