Firetrail S3 Global Opportunities Fund (Hedged)

A high conviction portfolio with a sustainable edge^

^ See ‘Sustainable Edge‘ section below for more information.

Overview

The Firetrail S3 Global Opportunities Fund (Hedged) is a concentrated portfolio of Firetrail’s best global equity ideas. The investment process employs fundamental analysis to identify the most attractive investment opportunities with sustainable characteristics.^

The Fund aims to outperform the MSCI World 100% Hedged Net Total Return Index (AUD) over the long term after fees.

Global High Conviction

A concentrated portfolio of our best global equity ideas.

Value and Growth

A style agnostic approach with the flexibility to invest in both Value and Growth opportunities.

Sustainable Edge

Actively seeking investment opportunities that meet Firetrail’s sustainable investment criteria.^

^ See ‘Sustainable Edge‘ section below for more information.

Investment team

Managing Director & Portfolio Manager

Patrick Hodgens

Patrick is the Managing Director at Firetrail as well as a Portfolio Manager for the Firetrail Australian High Conviction Fund, Firetrail Australian Small Companies Fund, Firetrail Absolute Return Fund, and Firetrail S3 Global Opportunities Fund. Patrick has over 39 years’ experience investing in equity markets. Prior to joining Firetrail, Patrick spent 28 years at Macquarie Group as an Executive Director and Head of Listed Equities. Patrick holds a Bachelor of Business from the University of Technology Sydney.
Portfolio Manager

James Miller

James is a Portfolio Manager at Firetrail Investments for the Firetrail S3 Global Opportunities Fund. James’ primary sector responsibility is in Global Industrials. James has over 17 years’ experience investing in equity markets. Prior to joining Firetrail, James was Co-Lead Portfolio Manager for the Macquarie High Conviction Fund, the Macquarie Pure Alpha Fund and the Macquarie Australia Plus Fund. James holds a Bachelor of Engineering (Honours) and a Master of Applied Finance.
Portfolio Manager

Justin Gray

Justin is a Portfolio Manager at Firetrail Investments for the Firetrail S3 Global Opportunities Fund. Justin’s primary responsibilities include daily portfolio management, investment risk management, and fundamental analysis of global equities. Justin has over 22 years’ relevant industry experience. Prior to joining Firetrail, he spent 10 years at Macquarie Group as Head of Quantitative Research and Co-Lead Portfolio Manager and Analyst for the Macquarie Small Companies Fund. Justin holds a Bachelor of Commerce and is a Fellow of the Institute of Actuaries of Australia.
Portfolio Manager

Oscar Hutchinson

Oscar is a Portfolio Manager at Firetrail Investments. Oscar joined Firetrail in 2022 and has over 10 years’ experience investing in global markets. Prior to joining Firetrail, Oscar worked as a Portfolio Manager at Anacacia Capital managing global equities. He also spent 8 years at Fidelity International as Deputy Portfolio Manager and Senior Equity Analyst.
Oscar has deep experience in global equities including coverage of European markets, metals and mining, healthcare, financials, property, and consumer sectors. He holds a Bachelor of Philosophy, Politics & Economics (converted to MA) from Oxford University and is a CFA Charterholder.
Head of Investment Strategy, Global

Anthony Doyle

Anthony Doyle has over 21 years’ experience in global markets and is a highly regarded Economist and Investment Strategist. His role at Firetrail involves providing economic analysis that impacts portfolio decision making, currency risk management, portfolio analysis and insights.
Prior to Firetrail, Anthony worked as an investment strategist covering global capital markets for investment firms such as Fidelity International (Sydney), M&G Investments (London), Amundi Pioneer (Dublin) and Macquarie Group (Sydney).
He holds a Master of Business Administration from the University of London, a Master of Economic Studies from the University of New England, a Bachelor of Commerce from Macquarie University, and the CFA Institute Certificate in ESG Investing.

Sustainable Edge

Sustainable edge refers to Firetrail’s investment philosophy that sustainable companies deserve premium valuations. That is, companies that the market perceives to have sustainable characteristics, such as good environmental practices, a social licence to continue operations over the long-term, or strong corporate governance, deserve premium valuations relative to companies that do not.

Firetrail’s sustainable investment criteria are the following three attributes which Firetrail looks for when identifying investment ideas and opportunities for the Fund (known as the S3 characteristics):

  • Sustainable

    business models

    Sustainable business models

    Companies which have business models that exhibit characteristics such as, but not limited to, consistency of cashflow growth, business strategy, quality of management, governance, industry, and competitive position;

  • Sustainable

    earnings

    Sustainable earnings

    Companies which Firetrail believes are able to meet or exceed earnings expectations over its 5- year investment horizon.

  • Sustainable

    positive change

    Sustainable positive change

    Companies which Firetrail believes currently meets, or is expected within a 5-year investment horizon to meet, one or more of its four sustainable investment themes including:
    Health and Wellbeing
    Innovation and Equality
    Climate Impact
    Sustainable World
    Each of these investment themes links to a number of the United Nations Sustainable Development Goals (please refer to https://sdgs.un.org/goals for more information on the United Nations Sustainable Development Goals).  More information can be found in the Fund’s Product Disclosure Statement under “Labour Standards or Environmental, Social or Ethical Considerations”.

    This includes companies that are already recognised by the market for their sustainability characteristics (current positive change leaders), as well as companies that are likely to be recognised within a 5-year investment horizon (future positive change leaders).

Sustainable business models

Companies which have business models that exhibit characteristics such as, but not limited to, consistency of cashflow growth, business strategy, quality of management, governance, industry, and competitive position;

Sustainable earnings

Companies which Firetrail believes are able to meet or exceed earnings expectations over its 5- year investment horizon.

Sustainable positive change

Companies which Firetrail believes currently meets, or is expected within a 5-year investment horizon to meet, one or more of its four sustainable investment themes including:
Health and Wellbeing
Innovation and Equality
Climate Impact
Sustainable World

Each of these investment themes links to a number of the United Nations Sustainable Development Goals (please refer to https://sdgs.un.org/goals for more information on the United Nations Sustainable Development Goals).  More information can be found in the Fund’s Product Disclosure Statement under “Labour Standards or Environmental, Social or Ethical Considerations”.

This includes companies that are already recognised by the market for their sustainability characteristics (current positive change leaders), as well as companies that are likely to be recognised within a 5-year investment horizon (future positive change leaders).

More Information on Firetrail’s approach to sustainability can be found in the Additional Information to PDS.

Key Features

APIR WHT4609AU
Benchmark MSCI World 100% Hedged Net Total Return Index (AUD)
Portfolio allocation^ Global equities: Typically 90% – 100%
Cash: 0 – 10%
Stock numbers Approximately 30
Suitable investor profile This product is intended for use as a minor allocation for a consumer who is seeking capital growth and has a Very high risk and return profile for that portion of their investment portfolio. It is likely to be consistent with the financial situation and needs of a consumer with a 5 year investment timeframe and who is unlikely to need to withdraw their money on less than one week’s notice.
Suggested investment timeframe 5 years or more
Risk Very high
Legal structure Unlisted, open-ended Australian unit trust
Distribution Semi-annually, subject to the Fund having sufficient distributable income as at 30 June and 31 December.
Minimum initial investment 1 A$20,000

Ratings and Certifications

Further information on our Ratings and Certifications can be found in the Disclaimer & Disclosure section.

Unit Prices and distributions

Unit Price History

Unit prices are net of fees & include distributions. Calculation of unit prices is based on the net asset value plus/minus transaction costs divided by the total number of units on issue. Past performance is not a reliable indicator of future performance. The inception date is the date that the current investment strategy commenced, which is 19 May 2022. This material has been provided for general information purposes and must not be construed as investment advice.

 

Distribution History

The carbon emissions estimate for the Firetrail S3 Global Opportunities Fund (Hedged) has been calculated by Firetrail Investments Pty Limited (‘Firetrail’). The estimate of the carbon emissions for the Fund is based on the Fund’s portfolio holdings as at the end of the most recent calendar quarter following calculation by Firetrail. The carbon emissions calculation is performed by Firetrail on a quarterly basis. Please note these carbon emissions numbers are an estimate only and are subject to change. The actual carbon emissions attributable to your investment in the Fund may vary considerably from the estimate provided.

Carbon footprint includes Scope 1 and Scope 2 emissions. Company emissions data is sourced from MSCI. Portfolio carbon footprint is calculated based on the ownership methodology (e.g. owning 1% of the shares is owning 1% of emissions). The calculation also takes into account carbon removed from the atmosphere by portfolio companies. For example, via planted trees or carbon removal technologies. Carbon removal data is sourced from the applicable company.

carbon-offser

How to choose a high-quality carbon offset?

Firetrail has been a carbon-neutral business since inception. Further information can be found in our PDS and ESG Policy.

As part of offsetting our emissions each year, we have done substantial research into the carbon offsets market. You can read some of this research here.

For more information on Firetrail’s approach to sustainability, contact us.

1

The Responsible Entity has the discretion to accept lower initial investments. Does not apply to IDPS investments.

^

The portfolio allocation ranges provided are indicative only. The Fund will be rebalanced within a reasonable period of time should the exposure move outside these ranges. The Fund is typically expected to be fully invested. A portion of the portfolio may be allocated to cash or derivatives for liquidity purposes. The Fund may hold exchange traded derivatives to a maximum of 10% of the Fund’s NAV.

Disclaimer & Disclosure

All website content in respect of the Firetrail S3 Global Opportunities Fund (Hedged) (ARSN 657 902 880) (“the Fund”) is prepared by Firetrail Investments Pty Limited (ABN 98 622 377 913 AFSL 516821) (“Firetrail”) as the investment manager of the Fund. Pinnacle Fund Services Limited ABN 29 082 494 362 AFSL 238371 (“PFSL”) is the issuer of the Fund.

Pinnacle Fund Services Limited ABN 29 082 494 362 AFSL 238371 (‘PFSL’) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) ABN 22 100 325 184. The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund are available via the links above. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund. For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email service@pinnacleinvestment.com.

Neither PFSL, Pinnacle, nor Firetrail guarantees repayment of capital or any particular rate of return from the Fund. There can be no assurance that the Fund will achieve its investment objectives. The value of your units at any point in time may be worth less than your original investment even after taking into account the reinvestment of Fund distributions. Future returns may differ from past returns and past performance is not a reliable guide to future performance. Returns are not guaranteed, and you may lose some or all of your money. The specific risks associated with investing in the Fund, and the risks associated with the Fund’s investments, are discussed in the Product Disclosure Statement under the heading “Risks”. Neither PFSL, Pinnacle nor Firetrail gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Firetrail as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned November 2023) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

The Lonsec ratings (assigned April 2023) presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Firetrail products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: www.lonsec.com.au/fund-manager/investment-product-ratings