March Report

The Fund fell 24.4% in March, largely due to market volatility linked to the Iranian conflict. Encouragingly, the Fund has already recovered around 10% as of the 13th of April.

We saw a similar pullback last year following the introduction of US tariffs, which reversed relatively quickly. While the current situation remains uncertain, we believe some form of a resolution is likely over time, even if not all issues are fully settled.

During the month, performance was influenced by one disappointing biotech outcome and one very strong positive result.

Immutep, an Australian cancer immunotherapy company, failed a futility analysis in its Phase 3 lung cancer trial. This was unexpected and led to an 85% fall in the share price, reducing fund performance by 3.6% for the month. The company continues to develop its lead drug, Eftilagimod, in other cancer types and also has an early-stage autoimmune program (IMP-761). We chose to exit the position to realise the capital loss and will revisit the company once there is more clarity on what went wrong in the trial.

On the positive side, Amplia delivered very encouraging results in its ACCENT study. The company reported five complete responses out of 65 pancreatic cancer patients (a 7.8% response rate) when its drug, Narmafotinib, was combined with chemotherapy. This is a significant improvement compared to historical results, where chemotherapy alone produced just one complete response out of 430 patients (0.2%). While overall survival improved by two months, which is meaningful in such a difficult disease, the complete response data are particularly promising. The company is now working to identify which patients are most likely to benefit and is exploring combinations with KRAS inhibitors, a new class of cancer drugs targeting a key mutation found in many cancers.

More broadly, the portfolio was affected by broad-based selling, particularly in smaller companies. IperionX fell 48% during March (although it has rebounded 23% so far in April), Brazilian Rare Earths declined 20%, Metallium fell 25%, and Clarity Pharmaceuticals was down 15%.

Looking ahead, we see a number strategic updates and a possible bauxite spin-off at Brazilian Rare Earths, continued ramp-up of Metallium’s Texas recycling facility, and FDA approval of Artrya’s final cardiac CT scan module.

The war involving Iran has sharply reinforced a long‑evident weakness of the global energy system: excessive dependence on fossil fuels routed through a small number of highly militarised chokepoints, particularly the Strait of Hormuz, which normally handles roughly a fifth of global oil and LNG trade. The conflict has triggered price spikes, insurance withdrawal, shipping disruptions and policy responses across more than 60 countries, prompting governments to prioritise energy security alongside decarbonisation. Unlike oil and gas, renewable energy infrastructure is largely immune to embargoes once built, turning the transition from a climate objective into a strategic imperative.

This shift materially increases demand for secure, non‑Chinese critical‑mineral supply chains, directly benefiting companies exposed to domestic processing and recycling. IperionX stands to gain from U.S. efforts to reshore titanium supply for defence, aerospace and clean‑energy applications, reflected in substantial Department of Defence funding and scrap feedstock support. Brazilian Rare Earths is leveraged to growing Western interest in Brazil as a rare‑earth alternative to China, as governments accelerate magnet and electrification supply chains amid geopolitical stress. Metallium benefits from the same dynamic through its Flash Joule Heating technology, enabling domestic recovery of gallium, rare earths and other strategic metals from waste and residues in the U.S. and allied markets.