Hyperion Australian Growth Companies Fund

Outlook

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 –
Net (%)
     Benchmark*
(%)
Excess
Performance (%)
 1 month2.36.0-3.7
 3 month3.69.9-6.3
 1 year8.96.82.1
 3 years p.a.8.112.9-4.8
 5 years p.a.7.37.30.0
 10 years p.a.13.711.02.7

Top 5 Holdings

Portfolio (%)Benchmark* (%)
  REA Group10.00.2
  Cochlear9.30.6
  Domino’s Pizza8.00.2
  Macquarie Group6.22.4
  CSL5.55.2

* Benchmark is the S&P/ASX 300 Accumulation Index.
Past performance is not a reliable indicator of future performance

Fund Review

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.

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 28th February 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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