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1. Around the grounds…

On Monday the first cargo ship since February 26 (loaded with corn) left Ukraine. Ukraine is one of the biggest wheat, corn and vegetable-oil suppliers to the world. This should help slow the global consumer food price increases, which are a large part of global inflation.

But there has been no slowdown in European gas prices and supply issues. And the latest company to be impacted is Heineken. The world’s second biggest brewer warned of beer shortage risks at their result this week!

Finally we are keeping an eye on Californian water prices. The H2O price is at all time highs as severe drought limits the flow of water to cities and farms.

These market dynamics have focused our attention on energy efficiency in our portfolio companies, particularly in the S3 Global Opportunities Fund. Companies like Schneider Electric, who are developing energy control systems, and Carrier, whose aircon systems reduce the payback period for consumers, are positively exposed to this theme.

Source: Bloomberg

2. Un-tied…

The humble tie is the latest casualty in the European heat wave. The Spanish Prime Minister, Pedro Sanchez, adopted “urgent” energy-saving measures this week. Including calling on workers to stop wearing ties. Sanchez said the move will ensure people stay cooler and therefore lower energy costs, because air conditioners will be used less often.

Pedro Sanchez goes ‘tie-free’

Source: BBC News

3. The grass is not greener…

CoreLogic’s daily dwelling values index, which measures price changes across Australia’s five major capital cities, fell for the 13th consecutive week to 5 August. But if you’ve thought about giving up on investing in the Australian dream and buying virtual land instead, you may want to reconsider. The price per parcel of virtual land has come crashing down, with trading volume virtually non-existent!

Source: MacroBusiness

Source: WeMeta


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

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

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