IMPQ Monthly Report
- IMPQ was up 1.6% net of fees in May, outperforming the benchmark return by 1.3%.
- 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 18.3% p.a. return net of fees, outperforming the benchmark by 8.2% p.a.
- Positive contributors this month included Immutep, Telix Pharmaceuticals, Janison Education and Kathmandu.
- Negative contributors this month included Limeade, Control Bionics, 4D Medical and Imricor.
|Month (%)||Quarter (%)||FYTD (%)||1 Year (%)||Since Inception* (% p.a.)||Since Inception Cumulative* (%)|
|eInvest Better Future Fund||1.6||5.4||34.0||37.9||18.3||40.6|
|S&P/ASX Small Ordinaries Index||0.3||6.1||29.3||26.7||10.1||21.6|
|Added value (detracted)||1.3||-0.7||4.7||11.2||8.2||19.0|
^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 an industrial solutions company focussed on solving global sustainability challenges. Readers may recall that last month we discussed the agreement that Calix signed with Adbri (formerly Adelaide Brighton).
During May, Calix announced that it signed a memorandum of understanding covering the co-development of a midstream lithium chemicals processing plant using Calix’s core technology.
It is proposed that Pilbara Minerals and Calix will jointly develop a world-first commercial demonstration scale, low-emissions lithium salt production facility.
The demonstration plant will take lower-grade spodumene concentrate and process it utilising renewable energy to create a low carbon, concentrated lithium salt that is used as an input to lithium batteries.
Additional benefits of the new process include that a higher recovery is obtained from the ore using this process, resulting in less mine waste and, a higher value product is produced in Australia resulting in significantly less waste product being shipped overseas.
IMPQ was up 1.6% net of fees in May, outperforming the benchmark return by 1.3%.
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 18.3% p.a. return net of fees, outperforming the benchmark by 8.2% p.a.
Positive contributors this month included Immutep (+55.2%), Telix Pharmaceuticals (+20.3%), Janison Education (+10.1%) and Kathmandu (9.6%)
Negative contributors this month included Limeade (-28.1%), Control Bionics (-20.1%), 4D Medical (-19.3%) and Imricor (-18.4%).
Immutep, which is developing a “LAG-3” therapeutic product that stimulates the immune system to improve the effectiveness of cancer treatments, was stronger following the release of positive results from another “LAG-3” Phase II/III trial. This is a significant milestone in cancer immunotherapy and further recognises LAG-3 as a potentially promising checkpoint receptor.
Telix Pharmaceuticals announced that the company’s Phase III Prostate Cancer Therapy Clinical Trial had commenced during May which was earlier than expected.
Kathmandu announced the appointment of the current managing director of the Rip Curl business as the new managing director of the group. It also announced the establishment of a $100m sustainability linked loan which incorporates a pricing mechanism that incentivises improvement in material sustainability metrics, including greenhouse gas emissions, B Corp certification and continuing to improve the transparency, wellbeing and labour conditions for workers in its supply chain.
There were no material new announcements in relation to negative contributing stocks and we remain comfortable holding them. Our sense is that their fortunes may improve at the conclusion of the traditional tax loss harvesting period towards the end of June.
During the month, we reduced our holdings in Immutep and Telix after recent strong performance and sold out of Fluence and Synlait. We increased our holdings in Meridian Energy and Next Science and added Arena REIT to the portfolio. Arena REIT is an internally managed REIT focussd on investing in healthcare and childcare assets.
At month end the Fund held 44 stocks and cash was 8.5%.
At May end, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of IMPQ was 7.2 which is 26% higher than the benchmark ESGE Score of 5.7.
Our ESG activity during the month included:
- Fluence appointed a female independent NED who is well qualified for the role We have been engaging with the company on this issue for some time
- We visited the Micro X production facility in Adelaide where the company produces mobile X ray devices using cold cathode technology that are more efficient that traditional devices. The company indicated that it is doing more work to quantify the improved carbon outcome for use of the devices and measuring the social benefit more broadly
- We met with Alpha HPA to discuss the company’s carbon footprint modelling which suggests up to a 59 reduction in carbon dioxide over incumbent processing of high purity alumina.
- We met with Control Bionics and encouraged the company to improve gender diversity on the board
- We met with EROAD on their governance roadshow to discuss remuneration framework, gender diversity on the board and encouraged disclosure on the safety benefits of their products and their management of modern slavery risks.
- Emilie presented at the Financial Standard Best Practice Forum on Exchange Traded Products. Damian presented at the Inside Network Growth Assets Symposium in Melbourne and Sydney on The Green ‘ and also presented at the RIAA Australia 2021 Conference on a panel “Impact hiding in plain sight
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.
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.