About: Computershare is is the worlds largest operator of share registries, which provides corporate trust, stock transfer and employee share plans in over 20 countries.

Why it’s in the portfolio:

Fundamentals: CPU has a market cap of roughly $8,000. It’s currently trading on a PE ratio of around 15x forward earnings, a dividend yield of around 3% and a dividend payout ratio of approximately 60%. EPS is forecasted to be 67 (cps) and DPS is forecasted to be around 50 (cps)

What could go wrong: The mortgage servicing division of the business has typically seen strong competitive headwinds. Computershare’s business model has sometimes shown lack of differentiation from competitors, and the need for constant wins of new business may prove to be a risk. Client revenue is broadly expected to fall in the second half of 2019 which puts pressure on alternate revenue streams. Given the shift in business mix towards mortgage servicing, this be pose risk to the business moving forward.