Hyperion Asset Management’s Global Growth Companies B Fund has topped a table of 295 Equity World large cap funds as per the data from the Morningstar Direct Global Fund Manager database, which reports that the Hyperion Global Growth Companies Fund B delivered a total annualised return of 18.34 per cent over the five year period (ending 30/04/20).
The next best performing fund returned 14.81 per cent (or 3.53 per cent less) and the median return of all funds delivered 7.39 per cent (or 10.9 per cent less).
Commenting on the news, Managing Director and Chief Investment Officer, Mark Arnold, credited the top ranking to Hyperion’s strict proprietary process which allows it to separate the highest quality companies from the average: “Some of the factors we look for in a company are a strong value proposition, a highly committed management team that has skin in the game, good investment in R&D and new tech and strong balance sheets.
These are companies which we believe will continue to grow and deliver for our investors. And while some people may consider growth stocks to be expensive, investing in them doesn’t mean overpaying.”
Mr Arnold went on to say while the intense market volatility sparked by COVID-19 is a short term issue, he expects that the economic recovery from this period will be difficult and will be hindered by pre-pandemic headwinds including high debt levels, rising wealth inequality, ageing populations and disruption coming from technology and climate change.
“We are currently in an economic environment of stagnation where most companies will experience lower earnings and lower growth and we expect this period will last many years. With the economic pie not growing, companies will need to secure more market share in order to prosper.”
Jason Orthman, Deputy Chief Investment Officer added that Hyperion’s approach is based on the team being forward looking but patient: “We have taken advantage of the market drop to purchase shares in some companies which we had liked but considered overpriced at the time.
We are laser focused on protecting and growing our investors’ capital over the long term by investing in companies which continue to perform in all market conditions. We believe that this result is a testament to that goal.”
This article was originally published in Adviser Voice.