February saw most of our domestic portfolio companies release their half or full year results. The results were generally positive with the companies reporting solid sales and EPS growth. While some of the companies cited adverse macroeconomic conditions and other short-term challenges, we maintain a long-term perspective of a company’s performance and growth potential. REA-AU performed particularly well, delivering a strong result despite a backdrop of challenging domestic property market conditions, further highlighting the strong value proposition the company offers all stakeholders.
We remain confident that the companies in the portfolios will achieve attractive rates of revenue, EPS and DPS growth over the next five years, well ahead of the broader market.
| Portfolio –|
|3 years p.a.||8.1||12.9||-4.8|
|5 years p.a.||7.3||7.3||0.0|
|10 years p.a.||13.7||11.0||2.7|
Top 5 Holdings
|Portfolio (%)||Benchmark* (%)|
* Benchmark is the S&P/ASX 300 Accumulation Index.
Past performance is not a reliable indicator of future performance
Corporate Travel Management Limited (CTD-AU) released a market update for the first half of FY19, reporting revenue growth of 22% to $210m, underlying EBITDA growth of 21% to $65m and EPS growth of 25% to 36 cents per share. Total transaction value (TTV) during the period increased 31% to $2.9b, driven by strong growth across all regions, in particular Asia as the region benefited from a 3-month contribution from the Lotus Travel acquisition. Geographically, ANZ TTV was up 20% to $650m, revenue increased 15% to $58m and underlying EBITDA was up 18% to $22m, after the business continued to win market share in the region. In Asia, TTV was up 60% to $1.1b, revenue increased 47% to $38m and underlying EBITDA was up 34% to $13m, driven by the Lotus Travel acquisition and organically due to the traction CTM technology gained during the period, resulting in numerous client wins and an improved sales pipeline. In North America, TTV was up 16% to $690m, revenue increased 18% to $70m and underlying EBITDA was up 3% to $18m, after completing a $2m investment to develop a technology hub in the region. In Europe, TTV was up 18% to $542m, revenue increased 21% to $43m and underlying EBITDA was up 30% to $17m, as CTD-AU continues to win market share in the region. Management confirmed that the company is on track to meet the top end of the previously provided EBITDA guidance of between $144m to $150m.
Hyperion named AUSTRALIAN FUND MANAGER OF THE YEAR in the Morningstar 2016 Awards, Australia.
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