Three things that got the team talking this week - Firetrail Investments

Weekly insights from the Trail

Three things that got the team talking this week

October 29, 2021January 5th, 2022

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1. Inflation watch is back…

Although it never really left! The key 3 year bond rate exploded to 5x the 0.1% RBA target overnight. Futures markets are now pricing in a 75% chance of a rate hike in Australia in February 2022, this is in stark contrast to the RBA narrative of being on hold till 2024!

2. The great spend begins…

CBA’s indicator of Australians’ spending continued to pick-up in the week to 22^ndOctober. Unsurprisingly, spending in New South Wales is recovering most quickly and was nearly 24% higher than during the same week in 2019!

3. On the road to Net Zero…

Australia released its formal plan to deliver Net Zero by 2050 this week, ahead of COP26 in Glasgow this weekend. Australia joins the 40% of companies in the ASX300 who also have net zero / carbon neutral targets in place.

Interesting to note the difference between Carbon neutral and Net Zero terminology:

Carbon neutral: Any CO2 released into the atmosphere from a company’s activities is balanced by an equivalent amount being removed from the atmosphere.
Net zero: An activity conducted (or all activities conducted by a business) which releases net zero carbon emissions into the atmosphere.

Australia’s Net Zero plan is focused on technology, rather than higher taxes. With Regional Australia critical to achieving net zero – the plan details investment to be spent in the regions on different projects, funds and hubs. See step plan below.

Source: UBS

Disclaimer

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 service@pinnacleinvestment.com

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