Subscribe to get our latest investment news and insights straight to your inbox.

    impq

    IMPQ January 2022 Monthly Report & Update

    finder green etf
    IMPQ Monthly Report
    • The market was weak in January with the benchmark down 9.0%. Atypically for a month of weakness the resources sector (which we are underweight) outperformed strongly while more traditional defensive sectors such as healthcare (which we are overweight) were weak. IMPQ finished down 9.5%, underperforming the benchmark by 0.5%.
    • It is coming up to three years since inception of the Fund. It is a key goal of the Fund to demonstrate that there is no performance trade-off to invest for shaping a better future. Since inception, the Fund has delivered a 13.9% p.a. return net of fees, outperforming the benchmark by 6.8% p.a.
    • Positive contributors to relative performance this month include Alpha HPA (+11.7%), Janison Education (-4.9%) and G8 Education (+0.0%).
    • Negative contributors this month include Immutep (-22.4%), Calix (-23.9%) and Integral Diagnostics (-16.4%).
    Performance
    Month (%)Quarter (%)FYTD (%)1 Year (%)2 Year (%)Since Inception* (% p.a.)Since Inception Cumulative* (%)
    eInvest Better Future Fund-9.5-7.2-3.24.111.113.942.2
    S&P/ASX Small Ordinaries Index-9.0-8.0-4.66.76.07.120.4
    Added value (detracted)-0.50.81.4-2.65.16.821.8

    ^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

    3P learning is a provider of educational tools to assist with reading and maths. The solutions include Mathletics, Mathseeds and Reading Eggs which are used by children from kindergarten to year 12 across 100 countries at school and at home.

    One particularly socially positive element of the business is the 3P Learning and Click Learning collaboration in South Africa which is helping 100,000 children to learn to read.

    In South Africa 78% of children cannot read for meaning and 58% of households do not own a book and have no access to a computer.

    Reading Eggs and Click Learning developed a technology solution taking underutilized hardware, providing log ins to the Reading Eggs literacy program and employing unemployed youth to facilitate the program in the computer lab.

    You can learn more about the Click Learning collaboration here:

    https://www.youtube.com/watch?v+8WgoeLOray4

    impqFund Review

    The market was weak in January with the benchmark down 9.0%. Atypically for a month of weakness the resources sector (which we are underweight) outperformed strongly while more traditional defensive sectors such as healthcare (which we are overweight) were weak. IMPQ finished down 9.5%, underperforming the benchmark by 0.5%.

    It is coming up to three years since inception of the Fund. It is a key goal of the Fund to demonstrate that there is no performance trade-off to invest for shaping a better future. Since inception, the Fund has delivered a 13.9% p.a. return net of fees, outperforming the benchmark by 6.8% p.a.

    Positive contributors to relative performance this month include Alpha HPA (+11.7%), Janison Education (-4.9%) and G8 Education (+0.0%).

    Negative contributors this month include Immutep (-22.4%), Calix (-23.9%) and Integral Diagnostics (-16.4%).

    There was no material news for Alpha HPA although market appears to be increasingly confident that the company may announce a key global offtake partner for the company’s high purity alumina processing facility. Alpha HPA’s innovative process are expected to reduce greenhouse gas emissions associated with the product of high purity alumina by up to 59%. High purity alumina and associated by-products are used in the production of LED lights, lithium ion-batteries and smartphone screens.

    There was no incremental negative announcements for Immutep or Calix. Integral Diagnostics announced that despite 5% organic revenue growth which is pleasing in a severely COVID-impact environment, first half profit will be lower than expected due to higher COVID-related costs. We expect these cost impacts will abate over time and we remain comfortable with the company’s medium-term outlook.

    There was an interesting development for portfolio holding Next Science (-2.9%) during the month. Next Science has developed products which are more effective than existing products to prevent and treat bacterial infections in hospital environments. Next Science announced that it had signed a distribution agreement with Zimmer Biomet for the company’s Xperience product. Zimmer is a global leader in products used in orthopedic surgery and Zimmer’s 2,000 sales executives will be selling a white-label version of the Xperience product in the US. This presents a significant addition to the company’s existing sales force which commenced sales to leading US hospitals during 2021.

    At month end, the portfolio held 50 stocks and cash of 6.0%.

    At January end, 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

    Our ESG activity during the month included:

    • During January, the Better Future team targeted measurement and disclosure of GHG Emissions. We contacted each company in the portfolio that had not disclosed GHG Emissions and requested that they measure, disclose and take steps to reduce their emissions profile for Scope 1 and 2 emissions, and where possible Scope 3. We were met with positive responses from directors and managers including from City Chic, 3P Learning, Nitro Software and G8 Education.
    • Pendal appointed a female chair to the board and BEN appointed a female NED.
    • We discussed sustainability, and in particular gender diversity with Immutep including the importance of a gender diverse board of directors.

    This Analysis done on the Better Future Trust portfolio as at 31 August 2021 by the Sustainable Platform

    To read more about eInvest Better Future 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.