IMPQ Monthly Report
- The benchmark was very weak in June with the market concerned about the growth impacts of higher global interest rates. IMPQ finished the month down 9.7%, outperforming the benchmark by 3.4%.
- It is over three 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 for shaping a better future. Since inception, the Fund has delivered a +6.2% p.a. return net of fees, outperforming the benchmark by +5.9% p.a.
- Positive contributors to relative performance this month included Meridian Energy (-3.0%), Iress (+9.9%) and Spark NZ (-1.8%).
- Negative contributors this month included Immutep (-31.0%), Smartgroup (-27.2%) and Janison Education (-35.6%).
|Month (%)||Quarter (%)||1 Year (%)||2 Year %||Since Inception* (% p.a.)||Since Inception Cumulative* (%)|
|eInvest Better Future Fund||-9.7||-16.2||-17.9||7.2||6.2||20.5|
|S&P/ASX Small Ordinaries Index||-13.1||-20.4||-19.5||3.5||0.3||0.9|
|Added value (detracted)||3.4||4.2||1.6||3.7||5.9||19.6|
^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 Pacific Edge has developed the Cxbladder suite of diagnostic tests which use biomarkers to detect and manage bladder cancers. The Cxbladder tests are non-invasive and may be used in conjunction with and, over time, to reduce the need for multiple invasive cystoscopy procedures, which are the current standard of care for patients with bladder cancer symptoms.
The Cxbladder tests are used regularly in Pacific Edge’s home market of New Zealand and are increasingly being adopted in the US market where the Cxbladder Detect and Monitor tests are eligible for US Medicare and Medicaid reimbursement.
During June, Pacific Edge announced that Kaiser Permanente, the largest integrated health provider in the US, has given the green light to incorporate Cxbladder tests within Kaiser’s Electronic Medical Records system. This is a key development and will facilitate the use of the test by Kaiser’s urologists, which manage around 2% of the urology patients in the US.
The benchmark was very weak in June with the market concerned about the growth impacts of higher global interest rates. IMPQ finished the month down 9.7%, outperforming the benchmark by 3.4%.
It is over three 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 for shaping a better future. Since inception, the Fund has delivered a +6.2% p.a. return net of fees, outperforming the benchmark by +5.9% p.a.
Positive contributors to relative performance this month included Meridian Energy (-3.0%), Iress (+9.9%) and Spark NZ (-1.8%).
Negative contributors this month included Immutep (-31.0%), Smartgroup (-27.2%) and Janison Education (-35.6%).
There were no material new announcements for Meridian, Iress or Spark NZ.
Smartgroup announced the loss of a long-term top 20 client which is likely to have a modest negative impact on earnings. The Immutep share price was weaker, reversing last month’s performance, despite announcing some incrementally positive data from the first line non-small cell lung cancer trial of the company’s product efti in combination with the leading chemotherapy product KEYTRUDA. Janison was weaker with the only material announcement being that Janison’s online assessment platform had successfully delivered 4.3 million tests for 1.2m Australian school students as part of the annual NAPLAN assessment which was conducted fully online for the first time. At the peak there were 315,000 students simultaneously using the platform which is believed to be larger than any other online school assessment globally.
Other developments for portfolio holdings included:
Respiratory imaging technology company 4D Medical announced that it signed a nationwide contract with I-Med Radiology Network in Australia. The contract follows the successful rollout of 4D Medical’s technology across a number of trial sites. The company also announced that they will establish a Lung Centre of Excellence leveraging 4D Medical’s lung imaging technology.
Micro-X announced the signing of a second major US nationwide distributor for the company’s Rover mobile X-ray product.
Telix announced that it signed a distribution agreement for Isologic Innovative Pharmaceuticals Ltd under which Isologic will distribute Telix’s Illucix product in Canada.
Calix announced that it had agreed commercial terms for a joint venture with Pilbara Minerals for the development of a demonstration plant to produce low carbon lithium salt at Pilbara’s Pilgangoora Project using Calix’s patented calcination technology.
At month end, the portfolio held 47 stocks and cash of 7.5%.
At June end, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of the Fund was 7.3 which is 28% higher than the benchmark ESGE Score of 5.8.
Our ESG activity during the month included:
- Arena REIT reported that 80% of their portfolio have agreed to the installation of solar renewable energy systems with over 100 completed in FY22 which have reduced carbon emissions and provided ongoing operating cost savings.
- We engaged with NetWealth on their accounting practices and client fees.
- After engagement with EROAD on ESG disclosure and materiality, they released their first sustainability report which demonstrated their products are improving driver safety and OHS. For example, users of EROAD products reported 62% fewer speeding events and 90% reduction in fatigue related driving and top scoring drivers improved fuel efficiency by 6.2%.
- Spark NZ appointed a female NED, Sheridan Broadbent, to the board. This is in addition to the appointment of Aliza Beckett in Sparks “Leadership Squad” in March 2022.
- Perennial became a signatory to the 40:40 Vision which is an investor-led initiative established by industry super fund HESTA working towards gender-balanced executive teams by 2030.
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.
The rating issued 09/2021 published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. ©2022 Lonsec. All rights reserved.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 02/2022) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/RegulatoryGuidelines