Hyperion Global Growth Companies Fund

Outlook

June was a quiet month for portfolio news. The team attended several company and industry meetings in relation to prospective and current portfolio companies to gain insight and build a deeper understanding of their respective industries. Notably, Medidata Solutions (MDSO-US) and Dassault Systèmes (DSY-FR) announced the signing of a definitive agreement for DSY-FR to acquire MDSO-US in an all-cash transaction. The team continued to attend company and industry meetings to inform the investment process and ensure only the highest quality companies are held in the portfolios.

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 month 3.1 5.3 -2.2
 3 month 6.8 5.5 1.3
 1 year 17.5 12.6 4.9
 3 years p.a. 23.7 14.6 9.1
 5 years p.a. 21.4 13.8 7.6
 Inception* p.a. 20.7 13.6 7.1

Top 5 Stock Holdings

Portfolio (%) Benchmark* (%)
Alphabet Inc. Class A 8.7 0.8
Facebook, Inc. Class A 8.2 1.1
Amazon.com, Inc. 7.4 1.9
PayPal Holdings Inc 7.1 0.3
Mastercard Incorporated Class A 5.8 0.6

* Inception date: 1st June 2014. Benchmark is the MSCI World Index (AUD).
Past performance is not a reliable indicator of future performance.

Fund Review

Salesforce.com, Inc. (CRM-US) released its results for the first quarter ended 30 April 2019, reporting revenue growth of 24% to $3.7b, gross profit margin expansion of 106bps to 75.5% and net profit growth of 14% to $392m. Revenue growth was driven by a 11% increase in Sales Cloud (29% of revenue) to $1.1b, +20% in Service Cloud (27% of revenue) to $1.0b, +46% in Salesforce Platform and Other (23% of revenue) to $842m, +33% in Marketing and Commerce Cloud (15% of revenue) to $561m, and a 23% increase in Professional Services and Other revenue (6% of revenue) to $241m. Geographically, Americas revenue increased 25% to $2.6b, Europe +25% to $755m and Asia Pacific +22% to $365m. Management took the opportunity to reaffirm revenue guidance and increased diluted EPS guidance to $0.78 to $0.80 per share.

Medidata Solutions (MDSO-US) and Dassault Systèmes (DSY-FR) announced the signing of a definitive agreement for DSY-FR to acquire MDSO-US in an all-cash transaction at a price of $92.25 per share. The transaction was unanimously approved by the Board of Directors of both companies.

OBJECTIVE: LONG-TERM CAPITAL GROWTH AND INCOME BY INVESTING IN HIGH QUALITY GLOBAL COMPANIES PRIMARILY LISTED WITHIN THE MSCI WORLD MARKETS 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 GLOBAL GROWTH COMPANIES FUND (CLASS B UNITS)
This communication was prepared for financial advisers only. Interests in the Hyperion Global Growth Companies Fund (ARSN 611 084 229) (‘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) (‘Hyperion’) is the investment manager of the Fund. A copy of the most recent Product Disclosure Statement (‘PDS’) of the Fund can be located at www.hyperion.com.au , or by contacting Hyperion at 1300 497 374 or via email to investorservices@hyperion.com.au. You should consider the current PDS in its entirety and consult your financial adviser before making an investment decision. 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 30th June 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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