HYPERION GLOBAL GROWTH

COMPANIES FUND (CLASS B)

OBJECTIVE: LONG-TERM CAPITAL GROWTH AND
INCOME BY INVESTING IN HIGH QUALITY GLOBAL
COMPANIES.
SEPTEMBER 2019
High-conviction portfolio of quality global listed
equities from a research driven, bottom-up
investment philosophy.
Our Philosophy
High quality, structural growth businesses produce
attractive shareholder returns over the long-term.
Long-term capital preservation is paramount.

We believe companies in our portfolio have:

• Predictable earnings • High return on capital
• Low debt • Strong free cash flow
• High interest cover • Organic growth options
• Sustainable competitive • Experienced and proven
advantages management teams

GLOBAL MARKET OVERVIEW Net Performance - Growth of AUD $10,000*

Global equity markets rebounded during September as
renewed trade negotiations between the U.S. and China,
scheduled for October, dominated headlines. In the U.S.,
the S&P 500 Index returned +1.9% as the Federal Open
Market Committee lowered the Federal Funds Rate
target range for a second time this year, by 25 basis
points to 1.75% - 2.00%. In Europe, the Euro STOXX 50,
German DAX and FTSE 100 Indexes returned +4.3%,
+4.1% and +3.0%, respectively. During the month, the
European Central Bank announced a new set of stimulus
measures which included a cut to the main deposit rate
and a new quantitative easing program. In addition,
economic data revealed that economic activity is stalling,
the Composite PMI fell to a six-year low of 50.4 with the
manufacturing sector contracting further to 45.6, the
weakest reading since 2012. In Australia, the S&P/ASX
300 Index returned +1.9% after second quarter GDP Source: Hyperion Asset Management

growth was unchanged, retail sales declined and the Excess

Portfolio – Benchmark^
Reserve Bank of Australian kept the official cash rate on Net (%) (%) Performance
(%)
hold. Energy (+4.5%), financials (+4.2%) and consumer
discretionary (+3.3%) were the best performing sectors. 1 Month -1.9 2.1 -4.0
Communications services (-2.8%), REITs (-2.7%) and 3 Month 1.0 4.7 -3.7
health care (-2.2%) were the worst performers. Bulk 1 Year 11.3 9.9 1.5
commodity prices were mixed with Iron Ore and Brent 3 Year (p.a.) 22.3 15.6 6.7
Oil prices rising, whilst Thermal and Coking Coal prices
5 Year (p.a.) 20.9 13.6 7.4
and Gold fell. The U.S. dollar rose against several G10
Inception (p.a)** 19.9 13.9 6.0
currencies during the month, except the Australian
Dollar, Norwegian Krone, Canadian Dollar and Pound *Investment of $10k since inception. **Inception date: 1st June 2014. ^ MSCI World Index Gross (AUD).
Sterling. Returns are net of applicable fees, costs and taxes.
Past performance is not a reliable indicator of future performance.
Data as at 30th September 2019.

Hyperion named AUSTRALIAN FUND MANAGER OF THE YEAR

in the Morningstar 2016 Awards, Australia.
HYPERION ASSET MANAGEMENT FUND UPDATE | FOR FINANCIAL ADVISORS ONLY
PORTFOLIO HOLDINGS UPDATE
Hermes International (RMS-FR)

Primary Exchange Euronext Paris

GICS Sector Consumer Discretionary
Market Cap (EUR€m) 66,931

Hermès International (RMS-FR) released its first half FY19 results, reporting group revenue growth of 15% to
€3,284m, recurring operating income growth of 15% to €1,144m and EPS growth of 7% to €7.19 per share.
Overall, RMS-FR achieved strong growth across all geographical areas with revenue in Asia Pacific up 21% to
€1,299m, following positive momentum in continental China as the area simultaneously benefitted from
successful store openings and extensions across China, Singapore and Thailand. In Japan, revenue was up 16% to
€401m, after RMS-FR successfully deployed its new Hermes.jp platform which offers editorial content and
products which reflect the diversity of the Maison’s creations. Elsewhere, revenue in the Americas was up 16% to
€569m, Europe up 7% to €950m, and Other up 18% to €65m. Divisionally, the best performing sectors for the
company were Other Hermès, which includes jewelry and Hermès home products, up 23% to €248m, Ready-to-
Wear and Accessories, up 18% to €755m, and Leathergoods and Saddlery revenue, which includes bags, riding,
diaries and small leather goods, up 16% to €1,652m. During the first half of FY19, RMS-FR opened a shoe
manufacturing site in Italy and management expect to open five net new stores during FY19.

Commentary sourced from Hyperion Asset Management HYPERION ASSET MANAGEMENT FUND UPDATE | FOR FINANCIAL ADVISORS ONLY
Top 5 Holdings Market Capitalisation (AUD)
Portfolio (%) Benchmark (%) Portfolio (%) # Stocks
Amazon.com, Inc. 8.9 1.8 $0 - $50bn 21.2 9
Alphabet Inc. Class A 8.7 0.9 $50 - $100bn 1.6 1
Facebook, Inc. Class A 6.5 1.0 $100bn + 59.5 12
PayPal Holdings Inc 6.5 0.3 Cash 17.8 --
Microsoft Corporation 5.3 2.5 Total 100 22

Geographical Weight by Source of Revenue Sector Allocation

Portfolio (%) Benchmark (%)
Communication Services 21.2 8.4
Consumer Discretionary 21.6 10.6
Consumer Staples 2.9 8.8
Financials 1.4 15.7
Health Care 4.0 12.4
Information Technology 31.1 16.5
Cash 17.8 --

Source: Hyperion Asset Management

Portfolio Characteristics ^ Top 5 Contributors (rolling 12 months) ^
Portfolio Avg Price Contribution
Contributors Weight change to return
Price to Earnings* 29 (%) (%) (%)
Dividend Yield (%)* 1.0 PayPal Holdings Inc. 7.1 26.5 2.2
5-Year IRR (% p.a.) 1 19.2 Microsoft Corporation 5.6 30.4 1.7
^ Data relates to the Composite * Trailing 1 Before fees Facebook, Inc. Class A 7.9 16.2 1.7
Fund Characteristics Mastercard Incorporated
5.6 30.9 1.7
Class A
Domicile Australia, authorised by ASIC
MarketAxess Holdings Inc. 1.9 96.8 1.6
Fees Management fee of 0.70% p.a. of the gross
asset value of the Fund, plus a performance Detractors
fee of 20% of the Fund’s excess return
versus the MSCI World Index (AUD), net of Workday, Inc. Class A 0.9 -18.8 -0.7
management fee. Seek* 0.7 -12.1 -0.5
Composite size $217.5 million Domino’s Pizza, Inc.* 2.2 -11.9 -0.3
Fund size $202.6 million Moncler SpA 2.3 -11.3 -0.3
APIR Code WHT8435AU Amazon.com, Inc. 8.3 -7.0 -0.3
The Fund’s PDS contains more complete information on risks and fees
^ Data relates to the Composite * Stock not currently held

CONTACT HYPERION ASSET MANAGEMENT Tel: 1300 497 374 or Email: clientservices@hyperion.com.au
DISCLAIMER – HYPERION GLOBAL GROWTH COMPANIES FUND (CLASS B UNITS)
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 September 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.
HYPERION ASSET MANAGEMENT FUND UPDATE | FOR FINANCIAL ADVISORS ONLY