Hyperion Australian Growth Companies Fund

NOVEMBER 2019

Performance

 Portfolio –
Net (%)
     Benchmark*
(%)
Excess
Performance (%)
 1 month 5.9 3.2 2.7
 3 month 10.1 4.8 5.3
 1 year 28.7 26.0 2.7
 3 years p.a. 14.0 12.7 1.3
 5 years p.a. 12.0 10.0 2.1
 7 years p.a. 14.2 10.8 3.4
 10 years p.a. 10.7 8.4 2.4
 15 years p.a. 11.4 8.3 3.1
 Since Inception** p.a. 12.0 9.6 2.4
 Since Inception**^ 604.1 382.5 221.6

Top 5 Holdings

Portfolio (%) Benchmark* (%)
  Cochlear 10.2 0.7
  REA Group 10.2 0.3
  CSL 10.1 6.8
  Domino’s Pizza 8.7 0.2
  Macquarie Group 7.0 2.3

* Benchmark is the S&P/ASX 300 Accumulation Index.
** Inception date 30th September 2002
^ Total Return
Past performance is not a reliable indicator of future performance

Fund Review

In Australia, the S&P/ASX 300 Index returned +3.2% with economic data revealing an increase in house prices during November and weaker retail trading activity and wages growth during the third quarter of 2019. Information technology (+10.6%), health care (+8.8%) and consumer staples (+8.1%) were the best performing sectors. Financials (-2.0%), utilities (-0.5%) and REITs (+2.3%) were the worst performers. Bulk commodity prices were mixed during November with gold and thermal and hard coking coal prices falling, whilst iron ore and brent oil rose. The U.S. dollar was up against most G10 currencies during the month, except against the New Zealand Dollar and Swedish Krona.

Macquarie Group Limited (MQG-AU) released its first half year ended 30 September 2019 results, reporting net revenue growth of 8% to $6.3b, operating income growth of 8% to $1.8b and net profit growth of 11% to $1.5b. The company’s Annuity-Style operating group, comprising 60% of the group’s profits, increased net profit by 10% to $1.7b. Macquarie Asset Management net profit increased by 32% to $1.1b after it benefited from higher base & performance fees whilst Banking and Financial Services net profit was up 2% to $385m after achieving higher income from its Australian loan portfolio and from an increase in the funds on its platform. MQG-AU’s Markets-Facing operating group, comprising 40% of the group’s profits, increased net profit by 4% to $1.2b. Macquarie Capital’s net profit fell 56% to $223m due to lower investment-related income and lower interest income from its debt portfolio whilst the Commodities and Global Markets segment performed strongly with net profit up 32% to $1.1b driven by increased client hedging and overall activity on its platform. Management expect the group’s results for FY20 to be slightly down on FY19, subject to market conditions.

Xero Limited (XRO-AU) reported results for the first half ended 30 September 2019, announcing operating revenue growth of 32% to $339m, gross margin expansion of 240bps to 85.2% and EBITDA, excluding non-cash share-based payments & impairments, was up 66% to $82m. Geographically, ANZ achieved operating revenue growth of 25% to $211m, subscribers increased by 23% to 1.2m with the Average Revenue Per User (ARPU) down 1% to $31.64 due to the weaker AUD vs NZD but offset by contributions from Hubdoc and Xero Payroll. XRO-AU’s International segment achieved operating revenue growth of 46% to $127m, with subscribers increasing by 42% to 850,000 and ARPU up 1% to $29.98. Divisionally, Core Accounting revenue, 89% of revenue, increased 29% to $301m, Platform revenue, 6% of revenue, was up 116% to $20m, WorkflowMax revenue, 3% of revenue, was up 20% to $10m and Non-recurring revenue, 2% of revenue, increased 19% to $7m. The company also announced that as part of its social and environmental impact program it will offset 100% of its carbon emissions for the year and going forward.

OBJECTIVE: MEDIUM TO LONG-TERM CAPITAL GROWTH AND INCOME THROUGH INVESTING IN HIGH CALIBRE AUSTRALIAN COMPANIES PRIMARILY LISTED WITHIN THE S&P/ASX 300 AT THE TIME OF INVESTMENT.

 

 

 

 

Hyperion named AUSTRALIAN FUND MANAGER OF THE YEAR in the Morningstar 2016 Awards, Australia. 

The Fund’s Product Disclosure Statement contains more complete information on risks and fees.

CONTACT US
DISTRIBUTION PARTNER
Pinnacle Investment Management Limited
Tel: 1300 010 311
distribution@pinnacleinvestment.com
DOWNLOAD PDF COPY OF FUND UPDATE
DISCLAIMER – HYPERION AUSTRALIAN GROWTH COMPANIES FUND
Information for Financial Advisors only. Interests in the Hyperion Australian Growth Companies Fund (ARSN 089 548 443) (‘Fund’) are issued by Pinnacle Fund Services Limited (ABN 29 082 494 362 AFSL 238 371). Pinnacle Fund Services Limited is not licensed to provide financial product advice. Hyperion Asset Management Limited (ABN 80 080 135 897 AFSL 238 380), is the investment manager of the Fund. You should consider the current Product Disclosure Statement (‘PDS’) in its entirety and consult your financial adviser before making an investment decision. The current PDS of the Fund can be obtained via www.hyperion.com.au or by calling Hyperion at 1300 497 374 or via email to investorservices@hyperion.com.au. Pinnacle Fund Services Limited and Hyperion believe the information contained in this communication is reliable, however its accuracy, reliability or completeness is not guaranteed. To the extent permitted by law, Hyperion and Pinnacle Fund Services Limited disclaim all liability to any person relying on the information in respect of any loss or damage (including consequential loss or damage) however caused, which may be suffered or arise directly or indirectly in respect of such information contained in this communication. Any opinions or forecasts reflect the judgment and assumptions of Hyperion and its representatives on the basis of information at the date of publication and may later change without notice. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. This communication is for general information only. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice relevant to their particular circumstances, needs and investment objectives. Past performance is not a reliable indicator of future performance. Unless otherwise specified, all amounts are in AUD. All data is as at 30 November 2019, unless otherwise stated. Morningstar Awards 2016 (c). Morningstar, Inc. All Rights Reserved. Awarded to Hyperion Asset Management for Fund Manager of the Year, Domestic Equities – Large Caps Category Winner and Domestic Equities – Small Caps Category Winner, Australia.
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