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1. Santa’s sleigh risks being grounded…

Hopefully you heeded my warnings to buy your presents early! Diesel run trucks could be parked up within 6 weeks according to DGL, a listed company that produces 60% of AdBlue. AdBlue is a critical input into diesel trucks and reduces emissions. Without AdBlue, which is high grade urea, trucks can’t operate. Supply chain disruptions has meant DGL is sitting on just six weeks of supply in warehouses. And they currently have 1,000 unfulfilled orders. The Aussie Govt is very concerned and has set up taskforce to fix it. If trucks stop running, everyday Australian’s will start to feel what a supply chain squeeze looks like!

2. Lots of loans…

APRA came out with their September quarter property stats this week. Despite increasing the buffer required to assess repayment ability from 2.5% to 3% in early October, new home loans funded keep growing. The percentage of loan flow with a DTI (debt-to-income) ratio greater than 4x is now >67% of flow!

Source: APRA

3. Buybacks back alright…

Hopefully some of you have now got the Backstreet Boys song in your head! Buyback authorisations in the US hit a new record all time high of $1.114 trillion YTD.  This now surpasses the prior record of $1.109 trillion in 2018 by 0.5%. When comparing y/y, 2021 YTD is up 175.7% vs 2020 YTD authorizations! And we are seeing a similar trend across the Australian market.


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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