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IMPQ Monthly Report & Update

IMPQ Monthly Report
  • We are very pleased to see IMPQ begin trading on the exchange this month. Trading began on 23 May 2019.
  • IMPQ finished the month slightly down net of fees for the seven days it was trading in May.
  • Positive contributors since listing included Polynovo, Integral Diagnostics and Mercury NZ.
  • Negative contributors this month included Link Administration Holdings, City Chic Collective and Synlait Milk.
Performance
Month (%)Quarter (%)FYTD (%)1 Year (% p.a.)Since Inception* (%)
eInvest Future Impact Small Caps Fund-1.4----1.4
S&P/ASX Small Ordinaries Index-1.2----1.2
Added value (detracted)-0.2----0.2

^Inception date is 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

During the month we attended a presentation by Cleanaway Waste Management at which the company discussed the company’s mission “to make a sustainable future possible”.  The company is investing in assets to maximise resource recovery across the waste hierarchy and maximise value across the value chain.  In particular, it is focussing on the development of recycling and waste-to-energy assets.

IMPQ Review

IMPQ only recently started trading on the market on the 23rd May 2019.  The performance since listing was -1.4%.

Positive contributors this month included PolyNovo, Integral Diagnostics and Mercury NZ.

PolyNovo is a healthcare company that developed the NovoSorb polymer skin matrix in conjunction with the CSIRO.  The NovoSorb product greatly improves outcomes for severe burns and wounds patients. The stock was higher after announcing that sales have been ramping up strongly in both April and May with each month delivering more than A$1m in revenue.  These represent key milestones for the company and indicate the traction that the product is gaining.

 

Negative contributors this month included Link Administration Holdings which announced disappointing earnings guidance due in part to ongoing Brexit delays.

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

ESG Activity

Our ESG-related meetings during the month included:

  • Kathmandu – we engaged with the company in relation to corporate governance and the extent to which sustainability and ESG are incorporated into KPIs.
  • Starpharma (not held) – we engaged with the company in relation to procedures around animal testing of the company’s medical products.
  • Freedom Foods (not held) – we engaged in relation to the nutritional value of the company’s products.
  • Cleanaway Waste Management – we attended a presentation where Cleanaway discussed how it is placing sustainability at the core of the company’s strategy.
  • City Chic – we engaged with the company to understand more about the company’s supply chain initiatives and processes around staff safety.
  • Geo40 (not held) – we attended a meeting with this early stage NZ company to learn how they make geothermal power processes more efficient.
IMPQ Activity

In terms of Fund activity, as it was our inaugural month of trading, we are pleased to say that we are fully invested.

At month end, IMPQ held 35 stocks and cash is at 5.7%.

IMPQ Carbon Emissions

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.