IMPQ Monthly Report
- IMPQ was down 0.9% net of fees in October, underperforming the benchmark return by 1.8%.
- It is over 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 its inception in May 2019, the Fund has delivered a 19.1% p.a. return net of fees, outperforming the benchmark by 7.5% p.a.
- Positive contributors this month included Janison Education (+18.1%), Imricor Medical Systems (+17.4%) and 3P Learning (+16.2%).
- Negative contributors this month included Control Bionics (-27.8%), Pendal (-19.6%) and Smartgroup (-15.6%)
|Month (%)||Quarter (%)||FYTD (%)||1 Year (%)||2 Year (%)||Since Inception* (% p.a.)||Since Inception Cumulative* (%)|
|eInvest Better Future Fund||-0.9||4.5||4.4||33.9||19.2||19.1||53.3|
|S&P/ASX Small Ordinaries Index||0.9||3.7||4.4||31.0||13.1||11.6||30.8|
|Added value (detracted)||-1.8||0.8||0.0||2.9||6.1||7.5||22.5|
^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
Last month, Last month, we established a position in 3P Learning (“3PL”) in the portfolio. 3PL is best known for its Mathletics product that is used by schools in Australia and globally to encourage primary school students to develop their maths skills in a way that is more like play than traditional techniques.
3PL recently merged with Blake eLearning which owns the Reading Eggs product which takes a similar “play” approach to teaching children to read.
The company has been re-energised following the merger with a number of people who were involved in Mathletics when it was a start-up and who went on to develop Reading Eggs joining 3PL.
Historically, Mathletics’ key focus has been on providing the product to schools, while the key focus of the Reading Eggs team was on direct-to-consumer markets.
Moving forward, the company is looking to revitalise the Mathletics program and focus the merged company’s increased resources on both the school and direct-to-consumer markets globally for Reading Eggs and Mathletics. This is likely to be beneficial for both students globally and 3PL’s prospects.
IMPQ was down 0.9% net of fees in October, underperforming the benchmark return by 1.8%.
It is over 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 its inception in May 2019, the Fund has delivered a 19.1% p.a. return net of fees, outperforming the benchmark by 7.5% p.a.
Positive contributors this month included Janison Education (+18.1%), Imricor Medical Systems (+17.4%) and 3P Learning (+16.2%).
Negative contributors this month included Control Bionics (-27.8%), Pendal (-19.6%) and Smartgroup (-15.6%).
Janison Education provided a positive AGM trading update and announced a small “bolt on” acquisition of the Quality Assessment Tasks (“QAT”) business. The QAT is an Australian market leader in the development of school assessments for Year 11 and 12 subjects. Janison will integrate the business including assessments, question bank and network of question developers and reviewers into Janison’s existing business and exam platform.
Imricor Medical Systems announced that the company had signed the Semmelweis Heart and Vascular Centre in Budapest, Hungary as a new client. Cardiac catheter ablation procedures using Imricor’s products are expected to commence this year. The leader of the program that will be using the products is Dr. Bela Merkely who received the prestigious Szechenyi Prize this year, honouring the greatest scientists in Hungary alive today.
Smartgroup which announced it had received a non-binding indicative proposal last month, announced that the potential acquirer of the business no longer intended to proceed with the offer at the initially indicated price. The board rejected a lower proposed price given the outlook for the business and reaffirmed that the company was trading in line with market expectations.
Control Bionics provided a slightly softer than expected quarterly update due to the ongoing COVID disruptions in both Australia and the US. In our view the company’s products that assist people with conditions such as MMD and spinal injuries to communicate are well-positioned once these headwinds abate.
During the month, we established a small position in Impedimed as part of a capital raising. The funds were raised to support growth after the company announced the results of a medical trial of the company’s bioimpedance spectroscopy (BIS) product that was conducted in 1,200 patients across 10 trial sites in the US and Australia. The study demonstrated that early detection of cancer-related lymphoedema using the company’s product resulted in a significantly lower rate of progression to chronic lymphoedema than patients using the existing standard of care. The use of the product will lead to better outcomes for breast cancer patients at risk of lymphoedema.
At month-end, the portfolio held 50 stocks and cash was 8.3%.
At October 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.
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.
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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.