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1. Get ready for take-off…

Happy school holidays Victoria! Over 100,000 passengers are expected to go through Melbourne airport today, even busier than pre-pandemic levels, with lines out the door for check in by 6am (see pic below). Qantas and Jetstar are preparing to fly around 350,000 customers over the next 4 days as school holidays also start in Queensland and NT. Then comes NSW next week…

Meanwhile Qantas delivered a very strong trading update this morning. They maintained guidance despite taking a one-off bonus for staff and adding staff for the busy school holiday period. And are taking domestic capacity out of the market, which will put further upward pressure on prices.


Source: Bureau of Labor Statistics


Melbourne airport on Friday

2. Cool summer…

Did you know, 16% of all global GHG emissions are from heating and cooling systems in buildings! With energy prices soaring, payback periods on new air conditioning systems are coming down. A new air conditioning system will save ~33% pa on your electricity bill, and in the UK, payback periods are now 2 years. The S3 Global Opportunities Fund is exposed to this thematic through its holding in Carrier Global.

Source: Firetrail

3. Spoiling the party…

Mining industry bodies have criticised the Queensland government’s decision to hike coal royalty rates in their state budget, released on Tuesday. From next month, the new rates will be 20% for prices above A$175, 30% for prices above A$225, and a 40% tier when prices exceed A$300. The previous highest bracket was 15% over $150.

There are concerns this will make the state less internationally competitive, and it looks like due to GST equalisation, 80% of the extra royalties will be redirected to Canberra over the next 5 years. The resources sector contributed a record $84.3 billion to the QLD economy last financial year, including through spending, and supported more than 422,000 jobs. We expect the industry to lobby against the change and wait to see who makes the next move…


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) 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 relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

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