IMPQ Monthly Report
- The benchmark was weaker in May with the market concerned about the growth impacts of COVID-19 related lockdowns in China and higher global interest rates. IMPQ finished the month down 5.8%, outperforming the benchmark by 1.2%.
- IMPQ hit its third anniversary this month. It is a key goal of IMPQ to demonstrate that there is no performance trade-off to invest for shaping a better future. Since inception, IMPQ has delivered a +10.0% p.a. return net of fees, outperforming the benchmark by +5.0% p.a.
- Positive contributors to relative performance this month included Immutep (+23.5%), Opthea (+34.5%) and NIB Health (+4.4%)
- Negative contributors this month included Kathmandu (-12.7%), Sims (-15.1%) and Integral Diagnostics (-10.4%).
|Month (%)||Quarter (%)||FYTD (%)||1 Year (%)||3 Year (%)||Since Inception* (% p.a.)||Since Inception Cumulative* (%)|
|eInvest Better Future Fund||-5.8||-3.5||-9.1||-5.1||10.6||10.0||33.5|
|S&P/ASX Small Ordinaries Index||-7.0||-3.6||-7.4||-4.6||5.5||5.0||16.1|
|Added value (detracted)||1.2||+0.1||-1.7||-0.5||5.1||5.0||17.4|
^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 May, long term holding Calix Limited announced that three projects involving Calix technology received government grants. The projects involve Boral (ASX: BLD), Adbri (ASX: ABC) and Pilbara Minerals (ASX: PLS). These grants have a combined value of A$61m which will allow Calix to support the decarbonisation efforts of these Australian companies. Pilbara Minerals received $20m under the Australian Government Modern Manufacturing Initiative (MMI), which will be used as part of a joint venture with Calix for the progression of a demonstration scale facility at the Pilgangoora Project. The technology is expected to deliver sustainability benefits across the lithium industry, by both improving the efficiency of the resource recovery process and allowing the process to use renewable energy.
Calix received $11m from the Australian Government’s Carbon Capture, Use and Storage (CCUS) Hubs and Technologies Program (CCUS program) to develop the world’s first commercial-scale process for the manufacture of low emissions lime with Adbri (formerly Adelaide Brighton). Similarly, Boral received $30m from the CCUS program to develop a project at its cement and lime facilities, for which Calix will be supplying its LEILAC technology to separate carbon dioxide from the production process.
The benchmark was weaker in May with the market concerned about the growth impacts of COVID-19 related lockdowns in China and higher global interest rates. IMPQ finished the month down 5.8%, outperforming the benchmark by 1.2%.
IMPQ had its third birthday this month. It is a key goal of IMPQ to demonstrate that there is no performance trade-off to invest for shaping a better future. Since inception, IMPQ has delivered a +10.0% p.a. return net of fees, outperforming the benchmark by +5.0% p.a.
Positive contributors to relative performance this month included Immutep (+23.5%), Opthea (+34.5%) and NIB Holdings (+4.4%).
Negative contributors this month included Kathmandu (-12.7%), Sims Ltd (-15.1%) and Janison Education (-16.5%).
Both Immutep and Opthea announced incrementally positive news and reversed some of their recent weak stock price performance. Immutep announced incrementally positive data on the Phase II trial related to non-small cell lung cancer and the Phase II trial related to
metastatic breast cancer. Opthea announced incrementally positive trial data which suggests that the company’s product to improve vision in patients with agerelatedmacular degeneration had an impact on more difficult to treat patients with a condition known as Polypoidal Choroidal Vasculopathy.
There were no material announcements in relation to Kathmandu or Janison Education. The Sims Ltd share price was impacted by softer global scrap metal prices.
Other developments for portfolio holdings included:
- PEXA announced a timeline and market share targets for the introduction of the company’s paperless conveyancing system to the UK after the company’s PEXA Pay system has been cleared by the Bank of England. It is envisaged the company’s Remortgage system will launch later this year with targeted market share of 25-50% by 2025 and the Sale & Purchase system launch targeted for 2025 with 25% market share by 2027.
- Micro-X announced further progress with the company’s Passenger Self-Screen Checkpoint project with the US Department of Homeland security having achieved the first stage design milestone; and
- Telix announced that the company’s prostate cancer imaging product Illucix had been granted full reimbursement status in the US which is a key milestone in the launch of the product after receiving US Food and Drug Administration approval for the product late last year.
At month end, the portfolio held 49 stocks and cash of 7.5%.
At May end, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of IMPQ was 7.3 which is 27% higher than the benchmark ESGE Score of 5.7.
Our ESG activity during the month included:
- Genetic Signatures appointed a female Non-Executive Director to the Board. This was a pleasing outcome as Perennial had engaged extensively with the company on the appointment, including putting forward the name of the new director for the company to consider.
- PEXA appointed a female Non-Executive Director to the Board, following the Better Future team’s engagement with the Company on improving board gender diversity
- We engaged with Nitro Software as part of the AGM voting process on issues including board independence, board gender diversity and remuneration.
- Emilie presented on a Responsible Investment Association of Australasia panel encouraging ASX small cap companies t increase their focus on ESG: turning ESG urgency into business value for ASX listed companies.
- We hosted two work experience students through the F3 Women in Finance program in the Better Future Team. Read more here.=
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