Inspire Australian Equities Fund (ETL6826AU) Report & Performance

What is the Inspire Australian Equities Fund fund?

Inspire Australian Equities Fund’s investment objectives are to invest in companies with a measurable positive social or environmental impact, while seeking to generate an investment return in excess of the S&P/ASX All Ordinaries Index over the long term.

  • The fund seeks to invest in companies listed primarily on the Australian Stock Exchange (“ASX”) that have a positive social and/or environmental impact.
  • The purpose of the Fund is ‘impact first’. This means each company in the portfolio is selected for the positive impact that is achieved by their main business activity.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Inspire Australian Equities Fund

Inspire Australian Equities Fund Fund Commentary June 30, 2023

Reflecting our preference to provide new capital to existing portfolio companies, we participated in an options block trade in Wide Open Agriculture in June and then exercised those options to increase the Fund’s weighting to the stock. Wide Open Agriculture is an ethical food company that sources produce from farmers with regenerative agriculture practices. Their main consumer brands are Dirty Clean Food and OatUP and they are developing a plant-based protein to create alternative food products using lupin. During the quarter, Wide Open Agriculture made several announcements including the preliminary nutritional analysis for their lupin protein. The attributes demonstrated potentially make lupin suitable for plant-based meat alternatives, high protein noodles, and egg white replacer. They also announced expansion of OatUP distribution into NSW and Victoria, as well as advancing discussions nationally and internationally. OatUP is the world’s first regenerative and carbon-neutral oat milk. Wide Open Agriculture is well-positioned given the increasing demand for plant-based food alternatives and oat milk and as demand for their products increases, this facilitates more farmland moving to regenerative practices.

The company has identified carbon as their key measure of impact. Their key practices to sequester carbon and reduce emissions include scaling up regenerative farming practices across Western Australia; increasing access to plant-based food and drinks; eliminating food waste; and reducing emissions in transport and refrigeration. This is consistent with our Fund’s aim to reduce carbon through investing in renewable energy companies and purchasing carbon offsets equivalent to our share of portfolio companies’ emissions.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Inspire Australian Equities FundETL6826AUManaged FundsDomestic EquityAustralia Mid/Small BlendDomestic Equity - Mid/Small Blend IndexASX Index MidCap 50 Index0.00 M1.39%0.00%0.8%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Inspire Australian Equities Fund5.63%12.43%31.23%0.26%8.05%16.69%16.74%18.49%-8.29%-30.58%-34.39%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Inspire Australian Equities FundDomestic Equity - Mid/Small Blend Index8.21%0.46%NA%NA%NA%1.48.41%7.83%0.910.92

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Inspire Australian Equities FundYes-https://www.8ip.com.au/-

Product Due Diligence

What is Inspire Australian Equities Fund

Inspire Australian Equities Fund is an Managed Funds investment product that is benchmarked against ASX Index MidCap 50 Index and sits inside the Domestic Equity - Mid/Small Blend Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Inspire Australian Equities Fund has Assets Under Management of 0.00 M with a management fee of 1.39%, a performance fee of 0.00% and a buy/sell spread fee of 0.8%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Inspire Australian Equities Fund has returned 5.63% in the last month. The previous three years have returned 0.26% annualised and 18.49% each year since inception, which is when the Inspire Australian Equities Fund first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Inspire Australian Equities Fund first started, the Sharpe ratio is NA with an annualised volatility of 18.49%. The maximum drawdown of the investment product in the last 12 months is -8.29% and -34.39% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Inspire Australian Equities Fund has a 12-month excess return when compared to the Domestic Equity - Mid/Small Blend Index of 8.21% and 0.46% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Inspire Australian Equities Fund has produced Alpha over the Domestic Equity - Mid/Small Blend Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Mid/Small Blend Index category, you can click here for the Peer Investment Report.

What level of diversification will Inspire Australian Equities Fund provide?

Inspire Australian Equities Fund has a correlation coefficient of 0.92 and a beta of 1.4 when compared to the Domestic Equity - Mid/Small Blend Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Inspire Australian Equities Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Inspire Australian Equities Fund with the ASX Index MidCap 50 Index?

For a full quantitative report on Inspire Australian Equities Fund compared to the ASX Index MidCap 50 Index, you can click here.

Can I sort and compare the Inspire Australian Equities Fund to do my own analysis?

To sort and compare the Inspire Australian Equities Fund financial metrics, please refer to the table above.

Has the Inspire Australian Equities Fund been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Inspire Australian Equities Fund?

If you or your self managed super fund would like to invest in the Inspire Australian Equities Fund please contact via phone or via email .

How do I get in contact with the Inspire Australian Equities Fund?

If you would like to get in contact with the Inspire Australian Equities Fund manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Inspire Australian Equities Fund. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - March 31, 2022

We participated in an equity raise for Genex Power as they required $40m in equity funding to reach contractual close on the Bouldercombe Battery Project (“BBP”), which is a 50MW/100MWh Battery Energy Storage System. It will be located next to an existing substation operated by Powerlink Queensland. An offtake agreement has been signed with Tesla which will operate the facility using their Autobidder system, guaranteeing a minimum level of revenue. Australia needs 123GWh of battery capacity to enable the phase out of coal power by 2040 which means that a BBP needs to be built each week, so it was critical that this project was funded, and our investment is directly contributing to one of the solutions to the climate crisis.

We usually avoid commenting on short-term fund performance as we focus on longterm business performance to drive returns and positive social and environmental impact. However, this quarter saw a sharp fall in the unit price due to the poor market environment for smaller companies other than resource and energy companies. As we have no investments in the energy sector other than renewable energy companies, the fund lagged the overall stock-market. The S&P/ASX Small Ordinaries Industrials Index is more representative of the sectors to which the Fund has exposure. As a result, we will show the Fund’s returns relative to this index in this report. The S&P/ASX All Ordinaries Accumulation Index remains the hurdle for the Fund’s performance fee.

Performance Commentary - June 30, 2021

Reflecting our preference to provide new capital to existing portfolio companies, we participated in an options block trade in Wide Open Agriculture in June and then exercised those options to increase the Fund’s weighting to the stock. Wide Open Agriculture is an ethical food company that sources produce from farmers with regenerative agriculture practices. Their main consumer brands are Dirty Clean Food and OatUP and they are developing a plant-based protein to create alternative food products using lupin. During the quarter, Wide Open Agriculture made several announcements including the preliminary nutritional analysis for their lupin protein. The attributes demonstrated potentially make lupin suitable for plant-based meat alternatives, high protein noodles, and egg white replacer. They also announced expansion of OatUP distribution into NSW and Victoria, as well as advancing discussions nationally and internationally. OatUP is the world’s first regenerative and carbon-neutral oat milk. Wide Open Agriculture is well-positioned given the increasing demand for plant-based food alternatives and oat milk and as demand for their products increases, this facilitates more farmland moving to regenerative practices.

The company has identified carbon as their key measure of impact. Their key practices to sequester carbon and reduce emissions include scaling up regenerative farming practices across Western Australia; increasing access to plant-based food and drinks; eliminating food waste; and reducing emissions in transport and refrigeration. This is consistent with our Fund’s aim to reduce carbon through investing in renewable energy companies and purchasing carbon offsets equivalent to our share of portfolio companies’ emissions.

Performance Commentary - March 31, 2021

the most significant news across the portfolio in the March quarter was the launch of a $90m equity raise by Genex to complete the financing of the $777m Kidston pumped storage hydro project. This was followed by the announcement that the contractual close for the project had been achieved and notice issued to Powerlink under the Generator Connection and Acces Aggrement to enable work to commence on the development of the new 186 kilometre transmission line

We have been invested in Genex since the launch of the Fund in January 2017 and supported three equity capital raises by them over that time including this latest funding round. There was strong demand for this institutional placement, attracting high profile investors in reneable energy such as entities related to Mike Cannon- Brookes and Scott Farquhar

Performance Commentary - September 30, 2020

The stock market continued its recovery due to the significant ongoing fiscal and monetary support. These positive drivers look set to remain for many months ahead offsetting the negative economic impacts of the pandemic. During the quarter, several portfolio companies reported developments related to scaling or extending their positive impacts. Avita Therapeutics announced the enrolment of the first patient in their pivotal study for the treatment of people suffering from vitiligo.

Around 2% of the global population are affected by the disease and, while it is not life-threatening or contagious, it can significantly impact their quality of life due to poor body image and low self-esteem. Avita is already rolling out ReCell for the treatment of acute burns and this study shows the potential to extend its usage. Genex Power is expanding into large-scale battery energy storage systems and reached agreement with Powerlink to access land next to their Bouldercombe substation near Rockhampton, Queensland for a new 50/75MWh battery project.

This is expected to be the first stand-alone largescale battery storage project in Queensland and is part of Genex’s strategy to become one of Australia’s market leaders in renewables and energy storage. Micro-X saw the first sales of their full-performance, digital, mobile medical x-ray imager to a number of Pacific Island nations facilitated by the World Health Organisation. The advantages of the Micro-X x-ray imager include reduced size, weight, and power usage along with the ability to be used in more rugged areas. This means that they are well-suited for use in developing nations. These developments demonstrate the ability of our portfolio companies to achieve even greater social or environmental impact over time.

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