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June 25 2021

1. Small business, big numbers…

Portfolio holding Xero provides some interesting data on the state of small business in Australia. The graph below shows their small business index, which depicts improvements or declines in the performance of the small business economy relative to the average month, including sales, time to be paid, jobs and wages. As you can see it has been improving solidly over the past year!

If you want to hear more about the small business ecosystem – our small caps analyst, Eleanor Swanson, recently spoke with Airtasker CEO Tim Fung on Ausbiz about the Airtasker platform. Airtasker is one of the highest conviction positions in the Firetrail Australian Small Companies Fund. You can see the interview here.

Xero Small business Index

Source: Xero

2. All in on equities…

The rolling 12-week period of inflows to equities remains significant, and far and away above typical years. There is still over a trillion dollars of retail money in money market funds.

Source: Goldman Sachs, as at 18 June 2021

3. Vaccine update…

Vaccine numbers are becoming even more important for Aussies with the continued lockdowns. Estimates put global jabs at around 40m per day, or around 300m per week! Although at our current pace, Australia is not expected to get to 80% of adults vaccinated until March next year.

See a roundup of the changes other counties are making to travel for vaccinated people below:

  • Canada – from July 5, fully vaccinated travellers won’t need to quarantine
  • UK – have a “green list” of countries with quarantine free travel.  Reports that they will extend to the “Amber” list for those that are vaccinated
  • US – care free! Includes NY lifting all state Covid restrictions
  • EU – opened to many, jabbed or not!
  • HK – cutting the quarantine to 7 days from 14 days for fully vaccinated travellers

Source: Credit Suisse