Hyperion Flagship Investments Limited (HIP) is an investment company providing investors with access to a diversified Australian investment portfolio. The company aims to maintain 90% of available funds in equity investments at all times with the balance in cash and equivalent. As a result, HIP is best suited to investors with a medium to long-term time horizon.

HIP engages Hyperion Asset Management Limited (Australian Financial Services Licence no. 238380) as its funds manager. Through a management service agreement, Hyperion Asset Management provides its expertise in dictating the composition of HIP’s portfolio with HIP’s Board of Directors monitoring Hyperion Asset Management’s performance and investment decisions.

Hyperion Asset Management’s investment strategy centres on the view that investing in high quality business franchises with the ability to grow sales and earnings at rates above GDP will produce superior investment returns over the long-term. HIP’s portfolio of investments comprises companies whose operations cover a wide spectrum of business activities.

The portfolio is constructed from the perspective of a business owner by investing in well managed companies and not simply by tracking the index weighting of various component stocks.

Relationship Between the Parties:

Background

HIP commenced operations in April 1998 as WAM Australian Equity Fund Limited. The name of the Company was changed in October 2000 to Wilson Investments Taurine Fund Limited. In December 2000 the company listed on the Australian Stock Exchange (ASX code: WIT). In August 2005, WIT underwent a name change to Hyperion Flagship Investments Limited (ASX code: HIP). The name change reflected HIP’s strong links with its funds manager, Hyperion Asset Management Limited and that Hyperion is no longer a wholly owned subsidiary of the Wilson HTM Investment Group.

For its part, Hyperion Asset Management commenced its life in 1997 as WHTM Asset Management Limited (WAML), a division of Wilson HTM. In 2004, key executives of WAML bought an initial 30% from Wilson HTM to create what is now called Hyperion Asset Management Limited. In 2006, the Wilson HTM entity holding the Hyperion Asset Management investment, was renamed Pinnacle Investment Management Limited with the aim of consolidating the Wilson HTM fund management expertise into one vehicle. Managed by funds management industry veteran, Ian Macoun, Pinnacle is the largest shareholder in Hyperion Asset Management with the remainder owned by Hyperion Asset Management’s executives (around 36%) and other minority shareholders.