CIO Insights - 1 March

Hi everyone 

Autumn already, wow! I do think the next couple of months often provide the best weather for the east coast of Australia, but I digress...

We reported NTA estimates this morning of $4.29 (pre-tax) and $3.87 (post tax). These will most likely represent the month end numbers used for reporting purposes. Last week was a rough week for equity markets, as investors started to look at what the bond market has been telling us for a while, that equity markets don’t perform as well when interest rates are rising, and perhaps we have now seen the lows for interest rates around the world, as fears of inflation raise bond yields, often at the expense of equity prices. Chinese markets fell 5% alone last week, and the tech heavy Nasdaq was down 4.9% also.

With our more detailed Monthly Investment report to be delivered to you early next week, where I can go into more detail about what’s going on in markets and our fund performance, I’m going to use this note to talk about the two ‘D’s’ in Hearts and Minds Investments.

By now you should all be aware that HM1, in lieu of any management fee, donates 1.5% of the Net Tangible Asset value of the fund to our group of nominated beneficiaries. I am pleased to report that last week the Board ratified the next 6-monthly donation amount of $6,166,726, being for the half year to December 31, 2020. This is up from $5,128,890 in the previous 6 months.

How good is that?!

And so, if the first ‘D’ is for Donation, what is the second one?

Yep, Dividend.

Last week HM1 was pleased to announce its first ever dividend.

Anyone who is on the register on 8 April 2021, which means you bought your shares on or before 6 April 2021, will be entitled to a fully franked 12 cent dividend per share. There are two options for you here:

  1. Have the dividend amount deposited to your nominated bank account on 20 April 2021; or

  2. Elect to participate in the Dividend Reinvestment Plan (DRP). This means that participating shareholders can reinvest their cash dividend in new HM1 shares at the relevant DRP price. The relevant DRP issue price will be at a 2.5% discount to the volume weighted average price (VWAP) on the four days following the Record Date (8 April 2021). If you are unsure about what to do, please speak to your financial advisor as to which option is best for your circumstances.

If you haven’t already given our share registry your preference for how you would like this, and any future dividends paid, you can do it online via our Investor Portal here. While you're there, check that you have provided us with your TFN and bank details (especially if your preference is option 1) and, if you are comfortable with receiving correspondence from us via email rather than hard copy, please update your communication preferences to email. You’d be surprised at how expensive postage is these days! If you need any support in accessing the investor portal or updating your preferences, you can email our registry at:

So, there you have it, donations and dividends from Heart and Minds Investments. As our Chairman, Chris Cuffe said last week, we sincerely thank our fund managers and service providers for their ongoing generosity in supporting the operations and objectives of HM1. We would also like to thank you, our shareholders, for supporting HM1’s combined objective of providing a compelling and attractive investment proposition whilst also supporting the advancement of medical research in Australia.


Stay safe,

Rory Lucas
Chief Investment Officer
Hearts and Minds Investments Limited

Reminder: these are simply my general views and should not be taken as investment advice


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DISCLAIMER: This communication has been prepared by Hearts and Minds Investments Limited (ABN 61 628 753 220). In preparing this document the investment objectives, financial situation or particular needs of an individual have not been considered. You should not rely on the opinions, advice, recommendations and other information contained in this publication alone. This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Past performance is not a reliable indicator of future performance. This document may not be reproduced or copies circulated without prior authority from Hearts and Minds Investments Limited.