Aussie equities manager says limiting volume of inflows essential to ensure ongoing outperformance

Boutique Australian equities fund manager, Hyperion Asset Management, announced today that it will close its institutional business to new inflows.

In addition, Hyperion will soft close its retail funds – meaning it will no longer accept new investors into its two flagship equity funds, the Hyperion Australian Growth Companies Fund and the Hyperion Small Growth Companies Fund, although existing unit holders will be able to continue to invest in both funds.

Hyperion’s institutional mandates will be hard closed immediately. The soft closure for retail investors will take effect as at 30 April 2015.

The decision to limit its funds inflow was made as a result of the manager’s continual review of capacity and its unwavering commitment to its investment philosophy.

Hyperion’s Managing Director, Tim Samway, said that substantial investment out-performance over the long-term has driven strong inflows to Hyperion’s funds, with the amount of Australian equities under management recently reaching $5.5 billion.

“This will be our 20th year of operation and over that time we have produced market leading investment out-performance for our clients. As a result, our funds have attracted substantial investor interest. Potential capacity issues are a side effect of such success.

“The best interests of our investors are at the heart of all our decisions. We are taking this proactive approach to limiting total assets under management to safeguard future investment performance for clients. By limiting funds before reaching our capacity we will preserve the concentration of high quality stocks in our portfolios and provide ample headroom for future outperformance and inflows from existing retail clients,” said Mr Samway.

Hyperion’s Australian Growth Companies Fund and Small Growth Companies Fund have achieved total performance, net of fees, of 12.7% p.a. and 17.1% p.a. respectively since inception beating their respective benchmarks by 2.4% p.a. and 10.3% p.a. Hyperion funds are currently ranked 1st and 2nd in the Morningstar Australian Institutional Sector Survey in their respective asset classes over the last 10 years.