Hyperion Small Growth Companies Fund

Outlook

June was a quiet month for portfolio news ahead of the Australian reporting season in August. 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.

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 1.8 0.9 0.9
 3 month 4.7 3.7 1.0
 1 year 9.3 1.9 7.4
 3 years p.a. 10.3 10.7 -0.4
 5 years p.a. 11.9 9.3 2.6
 10 years p.a. 15.4 6.3 9.1

 

Top 5 Stock Holdings

Portfolio (%) Benchmark* (%)
  REA Group 9.7
  Wisetech Global 7.5 2.2
  Nanosonics 7.0 0.8
  HUB24 6.5 0.4
  Corporate Travel Mgmt 6.1 1.0

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

Fund Review

Pushpay Holdings Limited (PPH-AU) held its annual general meeting during the month, announcing an increase to its Total Processing Volume guidance from US$4.6b and US$4.8b to US$4.8b and US$5.0b. In addition, EBITDAF guidance was also increased from US$17.5m and US$19.5m to between US$18.5m and US$20.5m. Furthermore, Chris Heaslip resigned as CEO but will remain as a Director of the company. As a result, PPH-AU appointed Bruce Gordon as CEO who will continue to be a director of the company.

Carsales.com Ltd (CAR-AU) announced that it is conducting a strategic review and will be pursuing the sale of its 50.1% interest in Stratton Finance Pty Ltd (Stratton). Stratton is a leading player in the asset finance and insurance market, assisting customers finance approximately $750m of assets each year by providing innovative finance arrangements for vehicles, boats and other leisure items, vehicle procurement and other related services. CAR-AU expects to continue its strong commercial relationship with Stratton and allow the business to focus on its other core business growth opportunities across its Australian and international operations. The timing of the sale will be determined following the completion of the independent strategic review, which Miles Partners has been engaged to conduct.

OBJECTIVE: MEDIUM TO LONG-TERM CAPITAL GROWTH AND INCOME THROUGH INVESTING IN HIGH CALIBRE AUSTRALIAN COMPANIES PRIMARILY LISTED OUTSIDE THE S&P/ASX 100 AT THE TIME OF INVESTMENT.

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

CONTACT US
DISTRIBUTION PARTNER
Pinnacle Investment Management Limited
Tel: 1300 010 311
distribution@pinnacleinvestment.com
DOWNLOAD PDF COPY OF FUND UPDATE
DISCLAIMER – HYPERION SMALL GROWTH COMPANIES FUND
Information for financial advisors only. The Hyperion Small Growth Companies Fund (ARSN 089 548 943) (‘Fund’) is currently closed to new applications. Pinnacle Fund Services Limited (ABN 29 082 494 362 AFSL 238 371) the Responsible Entity of the Fund 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 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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