Benefits of investing in the Insync Global Capital Aware Fund

Vision

• Insync believes that investing in a concentrated portfolio of high quality companies with good long term growth potential will lead to superior returns over time. They do this through stock selection from a select pool of global companies which they consider are exceptional and benefitting from global megatrends. By also seeking to reduce the magnitude of absolute loss during more significant equity market falls they believe the foundations are laid for successful long term investing.

Managing over a full investment cycle

• The Insync global quality strategy invests in businesses which Insync considers exceptional businesses with high and persistent returns on capital which typically deliver significant amounts of free cash flow. The strategy seeks to generate attractive long-term absolute and relative returns with good potential upside whilst providing defensive qualities during downturns.

Growing your wealth

• Insync's Global Capital Aware Fund is designed to grow your wealth through a quality and valuation-based approach to investing in large, liquid companies with exceptional business strength. Insync particularly likes less cyclical, resilient companies that it considers can consistently allocate capital efficiently in profitable growth opportunities and utilise the remaining cash flow to grow their dividends and/or buyback their shares.

Risk level

Medium to High

Investor suitability

Those investors with a medium to high risk tolerance seeking capital growth and some income from a portfolio of carefully selected companies from around the world.

About the Fund

The Fund invests principally in shares of companies listed on international stock exchanges (including the US, Europe and Asia).

The Fund's objective for this class is to deliver global equity-like returns over rolling 5 year periods, while providing downside protection for severe market falls, so as to deliver a highly beneficial result to investors over the full cycle.

The aim for this class is to outperform the MSCI All Country World ex-Australia Net Total Return Index in Australian Dollars over a full market cycle before the cost of protection.

The central belief

Insync's investment approach for the Capital Aware 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, and

• a strong focus on capital preservation will lead to superior relative and absolute returns over time, and that requires active stock selection and management of downside market risk and exchange rate risk.

How we invest your money

Insync adopts a two-step process to construct the portfolio for this strategy.

For further information on this screening process, refer p5 of the product PDS.

Asset allocation

The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled vehicles. Financial instruments such as forward contracts or listed options can be used to manage exchange rate risk and market risk.

At times, Insync may consider it prudent to hold higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities.

Insync may use options, futures and other derivatives to reduce risk (such as currency risk) and gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. Derivatives will not be purchased for the purpose of gearing the Fund. Insync will closely monitor derivative positions to ensure that the Fund can meet all derivative contract obligations from the cash or physical assets held by the Fund.