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    IMPQ December Monthly Report & Update

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    IMPQ Monthly Report
    • The Future Impact Small Caps Fund was up 5.1% net of fees, outperforming the benchmark return by 2.3%.
    • It is a key goal of the Fund to demonstrate that there is no performance trade-off to invest with a focus on sustainability and ESG.  Since inception in May 2019, the Fund has delivered a 20.2% p.a. return net of fees, outperforming the benchmark by 12.2% p.a.
    • Positive contributors this month included recently acquired stocks Doctor Care Anywhere (up 50% from IPO price), Control Bionics (up 56.6% from IPO price) and Immutep(up 53.7%).
    • Negative contributors this month included Fluence (-30.8%), Limeade (-13.4%) and Imricor (-7.8%).

    Performance

    Month (%)Quarter (%)FYTD (%)1 Year (%)Since Inception* (% p.a.)
    eInvest Future Impact Small Caps Fund5.1%20.3%28.3%22.5%20.2%
    S&P/ASX Small Ordinaries Index2.8%13.8%20.3%9.2%8.0%
    Added value (detracted)2.3%6.5%8.0%13.3%12.2%

    ^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

    Portfolio holding Control Bionics listed during the month.  The company specialises in enabling people with disabilities to communicate with and control electronic devices using their own neuroelectric signals.

    The company’s NeuroNode technology is a world leader in processing neuroelectric signals into electric commands to undertake tasks that are traditionally done with a keyboard, mouse or joystick.  The technology includes the NeuroNode 3 which is a watch sized, wearable, wireless sensor. The products enable a person to utilise their own neuroelectric signals, from their brain to a muscle, to control communication even when that muscle is not fully functional.  The products deliver faster communication with less fatigue than other available options.

    Control Bionics was up over 50% during the month, with an IPO price of 60c and a closing share price of 94c.  The $15m which was raised by the company during the IPO process is being used to expand the company’s existing operations in the US and to enter the Japanese market.

    Fund Review

    The Future Impact Small Caps Fund was up 5.1% net of fees, outperforming the benchmark return by 2.3%.

    It is a key goal of the Fund to demonstrate that there is no performance trade-off to invest with a focus on sustainability and ESG.  Since inception in May 2019, the Fund has delivered a 20.2% p.a. return net of fees, outperforming the benchmark by 12.2% p.a. During calendar year 2020 the Fund delivered a 22.5% return net of fees, outperforming the benchmark by 13.3%.  This is a pleasing result for investors, particularly as many of the contributors to this return are also making a positive contribution to a better future.

    Positive contributors this month included recently acquired stocks Doctor Care Anywhere (up 50.0% from IPO price), Control Bionics (up 56.7% from IPO price) and Immutep(up 53.7%). Other contributors included City Chic Collective (+45.7%) and Janison Education (+22.3%).

    Negative contributors this month included Fluence (-30.8%), Limeade (-13.4%) and Imricor (-7.8%).

    We participated in the initial public offering of Doctor Care Anywhere which listed in December.  Doctor Care Anywhere is a telehealth provider in the UK and Europe.  The company facilitates the provision of both primary care and secondary care remotely through its technology platform and clinicians.  The company provides services to more than 1,500 corporates and SME clients through a relationship with health insurers such as AXA and HCA Healthcare.  The company’s business model is designed to provide benefits for patients, clinicians and health insurers through the use of technology which makes services more accessible and reduces costs.

    Immutep is a biotechnology company that we have recently added to the portfolio. Immutep is developing immunotherapies for the treatment of cancer and autoimmune diseases with its lead product designed to improve the effectiveness of existing cancer treatments. During the month Immutep reported very positive data from their Phase IIb trial for use of their product in patients with breast cancer. In particular, the trial suggested a statistically significant overall survival benefit when the product is used in conjunction with existing chemotherapy treatments. The benefit was particularly strong in patients with low monocyte counts and Luminal B type cancer (a more aggressive form of breast cancer).

    City Chic Collective was higher after announcing the acquisition of the e-commerce assets of Evans Group.  The acquisition provides the company with a springboard to expand in the UK and Europe with the Evans brand which is well-known in the UK market.  Janison Education announced that the company’s online examination and proctoring technology had been selected by Chartered Accountants Australia and New Zealand to deliver the examinations for the CA Program online as part of a $5m five-year partnership.

    Fluence finished the month lower after announcing the resignation of the Managing Director last month.  Pleasingly, during the month the company reported that it had reached a key milestone in the company’s project to build a new water treatment plant in Abidjan, Cote d’Ivoire which will provide sufficient capacity to meet the fresh water needs of over one million people.

    Limeade was down despite announcing a new three year, US$2.3m per annum subscription contract with the University of Texas System.  UT System will offer the Company’s web-based and mobile employee well-being solution for all UT System employees. UT System is one of the largest employers in the state of Texas with over 240,000 students, 21,000 faculty and more than 85,000 health care professionals and support staff.

    We reduced our holdings in City Chic, Janison Education and Telix Pharmaceuticals following strong recent outperformance.

    We added to our holding in Genetic Signatures following the announcement of the company’s first client in the US and increased our holdings in Control Bionics and Immutepafter the share prices pulled back towards the end of the month.  We also added to our holdings in Resmed, Equity Trustees and Spark NZ after recent underperformance.

    At month end the Fund held 41 stocks and cash was 8.4%.

    For December, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of the Fund was 7.2 which is 26% higher than the benchmark ESGE Score of 5.7.

    ESG Activity

    As is often the case, December was a quieter month from an engagement perspective.  ESG activities included:

    • We discussed with G8 Education the Company’s announcement that it had detected the underpayment of staff due to inadequacies in its systems and has made a significant provision in its accounts to rectify the issues.  We discussed the circumstances of the underpayment and the steps it was taking to rectify the issue.
    • During the month we engaged with the newly formed group Investors Against Slavery and Trafficking APAC (IAST) to assist in the selection of high risk Australian companies.
    • We participated in a stakeholder ESG survey for EROAD.

    This is analysis done on the Sustainable Future Trust portfolio as at Feb 2020 by the Sustainable Platform

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

    Interested in purchasing units in the fund? Contact your financial adviser or simply purchase via your online broker, and as always read the PDS for more information. This can be found 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.