About: GBST Holdings Limited is a provider of securities transaction and fund administration software to the financial services industry in Australia, Europe, Asia and North America. GBST has three main products: GBST Composer which provides funds administration and management software for the wealth management industry; GBST Syn~ which provides a post-trade processing platform for equities, derivatives, fixed income and managed fund processing; and GBST Shares which is an equities processing software used by back and middle office. GBST comprises two divisions being Capital Markets and Wealth Management. Around 67% of revenue comes from recurring license fees and 53% of revenue is from outside of Australia.

Why it is in the portfolio: GBST provides integrated technology solutions to the financial services industry. As such it solutions tend to be, well integrated in its clients' businesses and cash flows are quite stable (but growing rapidly in recent years). Earnings have been negatively impacted in the recent period following project delays related to majors projects in the UK.

Fundamentals: GBST currently trades on a price-to-earnings ratio of around 20x forward earnings and offers around a 2.5% dividend yield on a dividend payout ratio of around 55%. GBST has no debt with a net cash position.

What could go wrong: A.