CIO Insights - 26 April

Hi everyone
One of the best parts of my role at Hearts and Minds Investments Limited is the interaction I get to enjoy with our beneficiaries. As I’m sure you all know by now, 1.5% of the Net Tangible Asset value of the fund is donated annually to our suite of medical research institutes around Australia. 50% of this donation is directed to the choices of our six core managers, while the Board nominates where 10% goes, and the remaining 40% is donated to the Victor Chang Cardiac Research Institute as our founding medical research organisation. Each of our core managers has some sort of connection with a medical condition, be it mental health, cardiac/respiratory problems, cancer, neurodegenerative, emergency care – just like the rest of us. We all have someone in our lives who has suffered from a horrible disease, and so whatever we can do to help find cures and ultimately prevention for some of these can only be a good thing.
In March we made our six-month donation to our beneficiaries, which totalled $6.2m, which was up from $5.1m in the previous six months. This increase was a direct result of the performance of our portfolio, which comprises 65% from our core manager recommendations, and 35% from our conference managers. Great job team!
A couple of weeks ago I had the privilege of catching up with Julia Hall and Fiona McKay from Multiple Sclerosis Research Australia, who wanted to tell me about the difference the funds coming from Hearts and Minds is making to them. MS Research Australia is the largest national not-for-profit organisation dedicated to funding, coordinating, educating and advocating for multiple sclerosis in Australia as part of the worldwide effort to solve MS. The goal is to accelerate research into the cause, treatments, and prevention of MS, ultimately aiming to find a cure. Julia and Fiona told me that the ‘stretch’ target is to have a cure by 2030, which would be incredible! MS is a horrible disease that seems like it can strike anyone at any time. As a result of our funding, MSRA has been able to form paired partnerships in their research, where researchers team up with clinicians, who combine their different skills to hopefully accelerate their findings. An example of this is the use of evidence-based recommendations on lifestyle modifications for people with MS.
Go team MSRA!!
Here are some of the other responses we received from our beneficiaries after the recent round of donations:

WOW, what an incredible result. What an amazing achievement by your team!! Congratulations and thank you to the whole H&M team, including the incredibly generous and intelligent fund managers!
I know we have said it before – but it makes such an impact to receive funding like this, to the work we are able to do at Orygen. Thank you so much to you all!

Wow what incredible stock selection from your fund managers! Thank you so much for all your hard work in supporting Black Dog Institute. Your staggeringly incredible support means Black Dog Institute can continue our vital research and the delivery of evidence-based programs throughout the community, so we can create a mentally healthier world for everyone. We are truly in awe of your impact every time we get an update from you.

Wonderful news, thanks all. I have been enjoying Rory’s regular email updates so to see this result come to fruition through all the market turmoil is fantastic.
Because of your efforts, these funds will help our amazing scientists continue their ground-breaking work and help us move closer to eradicating this insidious disease.

All of this wouldn’t happen without the support of our shareholders, as without you, we wouldn’t have a fund. The team at HM1 remains grateful for your ongoing support of what I think is a beautiful thing.
No change of note to the portfolio value in the past week or so, with US quarterly reporting season getting underway, and many stocks seemingly treading water ahead of their announcements and updated guidance. One of our conference recommendations, DISH Network (DISH .NAS) rallied 11% last Wednesday after announcing a partnership with Amazon Web Services for a 5G network, while a stock that reported missed analyst expectations and the share price declined as a result.  
Given we are now a full 12 months from the depths of COVID-19’s impact on markets (and lives), there will be plenty of information to absorb in the next few weeks about the ongoing health of individual companies, sectors, and indeed the economy as a whole.
Stay tuned, and 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


More from MS Research Australia:


MS Research Australia has a message of thanks to the Hearts and Minds Community for the support we provide them and their research to Stop and Reverse MS within the next 10 years.You can watch the video here.


In this beneficiary profile, MS Research Australia provides an update on the progress they are making towards their mission, as well as ways they have been able to leverage our funding to ensure maximum impact. Read the profile here.


For our Impact Video Series, we interviewed leading individuals from our beneficiaries to discuss the importance of medical research, their recent breakthroughs and the vital need for private funding. Hear from some of the MS Research team in this video.



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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.