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IMPQ July Update

IMPQ July Monthly Report & Update

IMPQ Monthly Report
  • The eInvest Future Impact Small Caps fund (IMPQ) finished the month up 3.3% net of fees, underperforming by 1.2% the very strong benchmark return of 4.5%.
  • Positive contributors this month included Calix Ltd (+25.2%), Ooh! Media (14.5%), AUB Group (14.0%) and Resmed(+10.7%).
  • Negative contributors this month included Windlab(-5.61%) G8 Education (-4.3%), Healius(-3.1%) and Invocare(-2.2%).
Performance
Month (%)Quarter (%)FYTD (%)1 Year (% p.a.)Since Inception* (%)
eInvest Future Impact Small Caps Fund3.3-3.3-4.5
S&P/ASX Small Ordinaries Index4.5-4.5-4.1
Added value (detracted)-1.2--1.2-0.4

^Inception date was 23 May 2019. Fund returns are calculated using net asset value per unit at the start and end of the specified period and do not reflect the brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Past performance is not a reliable indicator of future performance.

Monthly Highlight

Calix Ltd is trialling its carbon dioxide capture technology for lime and cement as part of Project LEILAC (Low Emissions Intensity Lime and Cement) at Heidelberg Cement’s plant at Lixhe, Beligium.

During the month Calix announced that the pilot plant had successfully demonstrated separation of carbon dioxide with more than 95.0% purity and that testing will continue at full design capacity over the next 12 months. The aim of Project LEILAC is to enable Europe’s cement and lime industries to reduce their carbon dioxide emissions dramatically without significant energy or capital imposts.

IMPQ Review

IMPQ finished the month up 3.3% net of fees, underperforming by 1.2% the very strong benchmark return of 4.5%.

Positive contributors this month included Calix Ltd (+25.2%), Ooh! Media (14.5%), AUB Group (14.0%) and Resmed(+10.7%).

Negative contributors this month included Windlab(-5.6%) G8 Education (-4.3%), Healius(-3.1%) and Invocare(-2.2%).

Readers may recall that we added Calix to the Fund last month. Calix announced that the pilot plant for the company’s innovative carbon dioxide capture technology which is situated in Belgium has been successful in separating carbon dioxide from the emissions from the lime and cement production process. This is an encouraging step in proving that the process works at scale.

Resmed(+10.7%) announced a result ahead of market expectations with strong sales momentum in all regions.

SynlaitMilk (+8.4%) held an investor day at which it outlined the company’s strategy. A key part of the strategy is to have a net positive impact on the planet and communities. To achieve this goal it has set targets of a 35.0% reduction of on-farm greenhouse gases per kilogram of milk solids by 2028 and a 50.0% off-farm reduction in total greenhouse gases per kilogram of milk solids.

Our focus continues to be on investing in companies that are making a positive contribution to creating a sustainable future.

 

IMPQ Activity

In terms of Fund activity, during the month we added a position in Telixto the portfolio. Telixis a company focussed on developing molecularly-targeted radiation for the treatment of prostrate, kidney and brain cancers.

At month end, the Fund held 34 stocks and cash is at 9.5%.

 

ESG Activity

Our ESG-related meetings during the month included:

ESG meeting activity was more limited this month with companies in pre-reporting “blackout”:

  • Retail Industrial Relations – we attended a meeting with Deloitte to better understanding recent developments in Industrial Relations in the retail environment.
  • Climate Change – we attended a lecture at UNSW delivered by Scientia Professor Rosemary Rayfuseon Climate Change and International Fisheries. The inverse relationship between rising sea temperatures and fish size was stressed, along with the implications for food security.
IMPQ Carbon Emissions

IMPQ Carbon Footprint

To read more about eInvest Future Impact Small Caps Fund (Managed Fund) ASX: IMPQ, click here.

Past performance is not a reliable indicator of future performance. Please read the PDS prior to investing. This information is general in nature and is subject to the terms and conditions outlined here.