IMPQ Monthly Report
- IMPQ was up 5.4% net of fees in April, outperforming the benchmark return by 0.4%.
- It is nearly two years since the inception of the Fund. It is a key goal of the Fund to demonstrate that there is no performance trade-off to invest with a focus on shaping a better future. Since inception in May 2019, IMPQ has delivered a 18.2% p.a. return net of fees, outperforming the benchmark by 7.8% p.a.
- Positive contributors this month included EROAD (+29.3%), Calix (+24.1%) and Next Science (+27.4%).
- Negative contributors this month included Telix (-12.6%), Genetic Signatures (-11.5%) and MedAdvisor (-10.0%).
|Month (%)||Quarter (%)||FYTD (%)||1 Year (%)||Since Inception* (% p.a.)||Since Inception Cumulative* (%)|
|eInvest Better Future Fund||5.4||1.3||31.9||45.0||18.2||38.4|
|S&P/ASX Small Ordinaries Index||5.0||7.4||28.9||39.8||10.5||21.3|
|Added value (detracted)||0.4||-6.2||3.0||5.2||7.7||17.1|
^Inception date was 23 May 2019. IMPQ 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.
Better Future Highlights
Calix is a industrial solutions company dedicated to solving global sustainability challenges. One of the uses of their technology is a carbon capture and storage process for the lime and cement industry which is responsible for ~9% of global greenhouse gas emissions.
Calix recently announced that it had executed an agreement with AdBri (Adelaide Brighton) to co-develop a Calix calciner for lime production with carbon dioxide capture.
The project has a 5-year development & demonstration program and represents a world-first development of a commercial-scale, zero-emissions lime production facility.
Lime is used for producing steel, aluminium, rare earths and gold. It emits 1 tonne of carbon dioxide for every 1 tonne of lime produced. Therefore a zero emissions lime solution is a key step in decarbonising the economy.
The agreement with AdBri, the $2bn market cap cement and lime producer, is a positive endorsement of the Calix technology and team. CEO Phil Hodgson said “We have seen a significant increase in inbound enquiries in Calix technology driven by the rapidly increasing interest in Environment, Social and Governance, from countries, companies and investors”.
IMPQ was up 5.4% net of fees in April, outperforming the benchmark return by 0.4%.
It is nearly two years since the inception of the Fund. It is a key goal of the Fund to demonstrate that there is no performance trade-off to invest with a focus on shaping a better future. Since inception in May 2019, IMPQ has delivered a 18.2% p.a. return net of fees, outperforming the benchmark by 7.7% p.a.
Positive contributors this month included EROAD (+29.3%), Calix (+24.1%), Next Science (+27.4%) and City Chic (+17.6%).
Negative contributors this month included Telix (-12.6%), Genetic Signatures (-11.5%) and MedAdvisor (-10.0%).
EROAD announced that it had signed Ventia as the company’s largest Australian enterprise customer and provided a quarterly update highlighting that the sales pipeline is improving post-COVID. Ventia is one of the largest essential services providers in Australia and New Zealand operating and maintaining public assets and infrastructure. EROAD provides a telematics platform that enable vehicle fleet operators to improve safety and vehicle performance. Ventia’s CEO said “We are delighted to enter this strategic partnership with EROAD, which will enhance our ability to improve safety for our people, our clients and the communities we operate in.”
Calix announced a project with AdBri (discussed further overleaf) and provided a positive quarterly update.
Next Science announced that it had received US Food and Drug Administration clearance for the company’s Xperience No Rinse Antimicrobial Solution. The solution is a surgical rinse which remains in the surgical site after closure to prevent infections. Next Science’s initial sales focus will be the US orthopaedic surgery market.
Telix was weaker after strong recent performance. During the month it announced that the Australian Therapeutic Goods Administration has commenced priority evaluation of the company’s prostate cancer imaging product.
Genetic Signatures provided a softer quarterly update with some delays to the onboarding of new clients for the company’s Easyscreen virus detection kits in Europe and the US after a strong start to the financial year in Australia. MedAdvisor also announced a weaker than expected quarterly update.
Other interesting developments for portfolio holdings during the month included Control Bionics (+16.1%) who announced that it had signed a reseller agreement with Numotion to offer the Control Bionics Trilogy product line in the US states of New Hampshire, Vermont and New York. Numotion is a leading provider of Complex Rehab Technology. Control Bionics products assist individuals dealing with diagnoses such as ALS/MND, traumatic brain injury and spinal cord injury to communicate more freely.
During the month, we reduced our holdings in Fisher & Paykel Healthcare, NIB and Mach7 Technologies and we added to holdings in Imricor, Micro-X and Genetic Signatures.
At April end, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of the Fund was 7.1 which is 25% higher than the benchmark ESGE Score of 5.7.
Our ESG activity during the month included:
- In October 2020, we wrote to Blackmores requesting that they appoint additional independent female directors to the board. At the time, the board was only made up of 20% females. Since our email, Blackmores announced a board restructure appointing a female as Chair. This month, they announced the appointment of an additional two independent female directors including a Chair of Blackmores’ Board Risk and Technology Committee and a Chair of Blackmores’ Board Audit Committee.
- We had a video conference with CEO of Imricor where we discussed the importance of gender and racial diversity as well as ESG reporting.
- We met with members of the Board of Iress to discuss gender diversity, remuneration structure, governance and ESG Policy.
- We discussed Board independence in a meeting with Doctor Care Anywhere.
- We discussed the company’s approach to gender diversity with Chair of Smart Group.
- We encouraged Alpha HPA to provide more detailed disclosure of the carbon savings from the company’s production process compared to traditional processes.
This is analysis done on the Better Future Trust portfolio as at September 2020 by the Sustainable Platform
To read more about eInvest Better Future Fund (Managed Fund) ASX: IMPQ, click here.
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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.