IMPQ Monthly Report
- The market was stronger in March and while the strength was more broad-based than in recent months, it continued to be driven by a stronger resources sector due to disruptions caused by the war in Ukraine and associated sanctions. The Fund finished the month up 4.0% underperforming the index by 1.3%.
- It is now almost 3 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 +13.6% p.a. return net of fees, outperforming the benchmark by +5.0% p.a.
- Positive contributors to relative performance this month included Calix Ltd (29.1%), Alpha HPA (+23.3%) and Sims Ltd (+18.4%).
- Negative contributors this month included Telix Pharmaceuticals
(-15.4%), City Chic Collective (-13.0%) and Fisher & Paykel Healthcare (-12.5%).
|Month (%)||Quarter (%)||FYTD (%)||1 Year (%)||2 Year (%)||Since Inception* (% p.a.)||Since Inception Cumulative* (%)|
|eInvest Better Future Fund||4.0||-8.5||-2.0||9.5||32.6||13.6||43.8|
|S&P/ASX Small Ordinaries Index||5.3||-4.2||1.1||9.7||29.2||8.6||26.7|
|Added value (detracted)||-1.3||-4.3||-0.9||-0.2||2.8||5.0||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
During the month 4D Medical announced that it had successfully developed the world’s first and only dedicated lung scanner and had deployed the company’s XV Scanner ahead of schedule at the Prince of Wales Hospital in Sydney. The scanner integrates 4D Medical’s proprietary XV Technology software and was developed with assistance from the Australian government’s Medical Research Future Fund.
The scanner provides detailed quantitative data on respiratory function via an automated scanning process. It allows significantly higher throughput than existing X-ray techniques and makes it much easier to scan children and patients with disabilities.
The scanner was delivered ahead of time and the R&D was completed by 4D Medical in-house in Australia. Mark Brooke, CEO of the Lung Foundation Australia said “This new technology promises to revolutionise diagnostic and imaging procedures for a range of lung disease impacting children, adults and older Australians…”
A video of the unveiling of the scanner is at this link. https://youtu.be/-rJW0qm-YVQ
The market was stronger in March and while the strength was more broad-based than in recent months, it continued to be driven by a stronger resources sector due to disruptions caused by the war in Ukraine and associated sanctions. The Fund finished the month up 4.0% underperforming the index by 1.3%.
It is now almost 3 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 +13.6% p.a. return net of fees, outperforming the benchmark by +5.0% p.a.
Positive contributors to relative performance this month included Calix Ltd (29.1%), Alpha HPA (+23.3%) and Sims Ltd (+18.4%).
Negative contributors this month included Telix Pharmaceuticals
(-15.4%), City Chic Collective (-13.0%) and Fisher & Paykel Healthcare (-12.5%).
Calix announced that it has received Australian Pesticides and Veterinary Authority approval for its environmentally friendly crop protection product, BOOSTER-Mag. The product allows farmers to materially reduce the use of conventional pesticides without compromising crop yield. The approval was the culmination of six years of product development, including a two-year application process. It is hoped that this will pave the way for approvals in other jurisdictions globally. Calix also announced that Project LEILAC 2 has received confirmation from the project’s European cement and lime partners of a “Final Investment Decision”. This next stage of Project LEILAC will construct a plant capable of capturing 20% of a cement plant’s carbon dioxide at a Heldelberg Cement plant in Hannover, Germany.
Alpha HPA announced that it had been granted $45m from the Commonwealth Government’s Modern Manufacturing Initiative to be applied toward the building of the company’s full-scale HPA First Project. The grant is a strong endorsement of the project and recognises the potential for the project to supply high purity aluminium materials to the decarbonizing industries of LED lighting and eMobility. The company’s high purity alumina process produces up to 59% less greenhouse gas emissions than traditional processes.
Telix Pharmaceuticals was weaker after a potential competitive product to the company’s Illucix imaging agent for prostrate cancer was approved earlier than anticipated. Fisher & Paykel Healthcare announced weaker than expected full year earnings guidance.
During the month Micro-X made a number of interesting announcements. The company signed a distribution agreement for the company’s fully integrated digital mobile X-ray system with MXR Imaging, the largest independent provider of diagnostic imaging equipment in the United States. During the month we met a senior MXR executive who indicated that the sales prospects for the product are encouraging. Secondly, the company announced that Micro-X’s design of a protype Miniature CT Baggage Scanner had been accepted for approval by the US Department of Homeland Security (“DHS”). The scanner is being developed for inclusion in an automated airport security checkpoint which the company is simultaneously developing with the DHS and the US Transport Security administration.
At month end, the portfolio held 49 stocks and cash of 7.1%.
At March 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.
Our ESG activity during the month included:
- Telix & Eroad appointed a female director to the board after discussions on gender diversity.
- Spark appointed a female to a newly created role on the “Leadership Squad”.
- We had a dedicated ESG meeting with APM to discuss emission reporting, employee wellbeing, reporting suite, gender diversity & pay gap, modern slavery, remuneration and certification programs.
- Discussed ESG with KMD Brands including remuneration disclosure, B-corporation status and modern slavery.
- Emilie discussed ESG and the Better Future strategy on ETFs for Beginners podcast and was interviewed by Hamilton Locke on ESG for private companies on the path to IPOs.
- Perennial attended various International Women’s Day events and undertook our own firm-wide diversity survey.
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