A high conviction portfolio with a sustainable edge.
The Firetrail S3 Global Opportunities Fund (Managed Fund) 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 Net Total Return Index (AUD) over the long term after fees.
The Fund is also available as an active ETF – accessible for investment on the ASX under the ticker S3GO.
The Fund’s philosophy is built on three key investment principles.
1. Sustainable companies deserve premium valuations – Companies that the market perceives to have sustainable characteristics, such as good environmental practices, a social license to continue operations over the long-term, or strong corporate governance, deserve premium valuations relative to companies that do not.
2. Share prices follow earnings – No matter how undervalued a company may seem, if earnings expectations are downgraded, the share price will generally fall. Companies generally reach fair value when they meet or beat market earning expectations.
3. The market is slow to recognise positive change – Companies can change for the better or worse. Fundamental analysis is the best way to uncover companies that can benefit from positive change in their business, industry, or markets. In this case, positive change refers to changes made by companies to implement one or more of sustainable
investment themes described below.
Firetrail aims to buy companies that it believes:
1. Idea generation
There are three key areas that generate ideas in the Investment Manager’s research process:
2. Fundamental Research
The Investment Manager conducts deep-dive fundamental research focused on what it believes to be the key driver(s) of a company’s earnings and the share price.
The research process often includes, but is not limited to:
3. Team decision making
Investment decisions are made as a team. For a potential company to enter the portfolio, each individual member of the investment team must have high conviction in the investment idea.
Only companies that Firetrail judge as meeting the ‘S3” investment criteria above will be included in the portfolio. In addition, companies that do not meet at least one of Firetrail’s sustainable investment themes outlined in the ‘Labour Standards or Environmental, Social or Ethical Considerations’ section below, will be excluded from the portfolio.
Firetrail will divest company’s that do not meet the S3 investment criteria or one or more of its sustainable investment themes based on the Investment Managers fundamental research and judgement.
4. Portfolio construction and risk
The Investment Manager aims to construct a concentrated portfolio of companies which the investment team believes to be undervalued over a 5-year investment horizon.
The portfolio construction methodology accounts for the Investment Manager’s conviction in a company, stock specific factors such as a company’s volatility and liquidity, and the portfolio’s overall exposure to macroeconomic, thematic, currency, or country risk. Each of these factors will determine a potential investment’s suitability and position size in the portfolio.
While the portfolio may hold cash for liquidity purposes, it is typically expected to be close to fully invested. The portfolio may use derivatives for currency hedging purposes.
Click here to view the latest Performance Details.
Click here to view our five key holdings.
The name of the Fund changed from Firetrail S3 Global Opportunities Fund to Firetrail S3 Global Opportunities Fund (Managed Fund) on 11 October 2022 to facilitate quotation of the fund on the ASX.
This webpage is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail S3 Global Opportunities Fund (Managed Fund) (ARSN 653 717 625) (the ‘Fund’). 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 Fund are available via the link 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: WHT7794AULinks to the Target Market Determination: WHT7794AUFor historic TMD’s please contact Pinnacle Client Service Phone 1300 010 311 or Email service@pinnacleinvestment.com
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.Whilst Firetrail, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Firetrail, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.Any opinions and forecasts reflect the judgment and assumptions of Firetrail and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned November 2022) 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-ratingsFiretrail S3 Global Opportunities Fund (Managed Fund) has been certified by the Responsible Investment Association Australasia according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsiblereturns.com.au for details.
The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.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 license to continue operations over the long-term, or strong corporate governance, deserve premium valuations relative to companies that do not.
Firetrail is an investment management boutique that specialises in high conviction investing. We build concentrated portfolios of our best ideas, to generate outstanding long-term performance for our clients.
The Firetrail story
Firetrail is an investment management boutique founded in 2018. The firm was established with a goal to align our people with our clients. Importantly, the firm is majority owned by our investment staff and the team is invested alongside our clients in the strategies.
Pinnacle Investment Management are partners and minority shareholders in the business.
The Firetrail history
While founded in 2018, the Firetrail staff have a long successful track record of investing in equities.
Prior to establishing Firetrail, the portfolio management team including Patrick Hodgens, Blake Henricks and James Miller worked together at Macquarie for over a decade. The team were responsible for managing the highly successful Macquarie High Conviction Fund, which delivered 10.6% p.a. (after fees) from inception in November 2005 to October 2017. The Fund was one of the top performing Australian equity funds over the medium and long term.*
Patrick is the Managing Director at Firetrail Investments as well as Portfolio Manager for the Firetrail Australian High Conviction Fund, Firetrail Absolute Return Fund, Firetrail Australian Small Companies Fund, and Firetrail S3 Global Opportunities Fund.
Patrick has over 36 years experience investing in equity markets.
James is a Portfolio Manager at Firetrail Investments for the Firetrail High Conviction Fund and the Firetrail Absolute Return Fund.
James’ primary sector responsibilities is Industrials stocks. James has over 14 years’ experience investing in equity markets.
Justin is Portfolio Manager of the Firetrail S3 Global Opportunities Fund and Head of Risk at Firetrail.
Justin’s primary responsibilities include daily portfolio management, oversight of investment risk management and fundamental analysis. Justin is a qualified actuary and has over 20 years relevant industry experience.
Anthony is the Head of Investment Strategy for the Firetrail S3 Global Opportunities Fund (Managed Fund).
His primary responsibilities include fundamental idea generation, portfolio analysis, and economic insights including currency and macroeconomic risk management. Anthony has two decades of experience including 10 years working as an investment manager in the UK.
Click here to view our latest Monthly Report.
Click here to view our previous monthly report.
You are investing in the same fund but you have a choice whether you hold off-market units via the responsible entity (RE) or buy the on-market units on the ASX in the same way you buy other publicly listed ETFs and shares.
Investors who apply for units directly with the Responsible Entity may pay a different price per unit to an investor who purchases those units on the ASX at the same time, and such differences may have a material impact on the performance of that investment. The above performance reflects the performance of the Fund where units are purchased and redeemed directly with the Responsible Entity only.
Exchange-traded managed funds are actively managed by fund managers to generate alpha and outperform relevant benchmarks. They are also sometimes known as active Exchange Traded Funds (ETFs), Exchange Quoted Managed Funds (EQMF), or quoted managed funds.
Exchange-traded managed funds will aim to beat the benchmark using a number of active investing strategies. They operate in a similar way to traditionally managed funds but have the benefit of transparent, live intra-day pricing and market-making ability which ensures liquidity.
Investors invest in the exchange-quoted managed funds by using a stockbroker, financial adviser or share trading platform.
To invest via the ASX – You can buy and sell units in S3GO via your online share trading platform, your stockbroker or your financial adviser.
To invest via the responsible entity (RE) – You can apply online at firetrail/invest. Alternatively, you can download a printer-friendly Application Form from the Fund Documents and Forms section of the relevant Fund page on our website, you will need to print the completed Form and return the original signed Form to the Registry via post:
Firetrail S3 Global Opportunities Fund (Managed Fund)
C/- Automic Group
GPO Box 5193
Sydney NSW 2001
If you are a wholesale investor as defined in section 761G of the Corporations Act 2001 and wish to invest via the RE in the Firetrail S3 Global Opportunities Fund (Managed Fund), please contact Client Services on 1300 737 240 Monday to Friday between 8.30 am and 5.30 pm (Sydney time) or via email at service@pinnacleinvestment.com.
Online Applications are available for individuals, partnerships, SMSFs, superannuation funds, other regulated trusts, and companies. Note, applications for unregulated trusts (such as family and testamentary trusts) CANNOT be completed online.
The avenue by which you invested in the Fund, either via buying units from the responsible entity (RE) or via the ASX, does not restrict how you can withdraw your investment.
To withdraw via the ASX – Log into your share trading platform and issue a sell order, just as you would for any listed ETF or share. This is a straightforward process if you have a Holder Identification Number (HIN) associated with your holding. If have a Security holder Reference Number (SRN), ask your stockbroker if they can sell your units on your behalf. If they are unable to do that, you will need to ask your stockbroker or trading platform if they can convert your holding into a HIN after which you will be able to sell your holding via the ASX.
To withdraw via the responsible entity (RE) – Complete a redemption request form available at https://firetrail.com/invest/ and submit it to the responsible entity (RE). You will need to provide your SRN or Investor Number on the withdrawal form. If you have a Holder Identification Number (HIN) instead, you will need to convert your holding from a HIN to an SRN with the assistance of your stockbroker or online trading platform.
Please note that there are differences when you redeem via the responsible entity (RE) or by selling on the securities exchange including the price you may pay. You should read the PDS or speak with your adviser before you decide which avenue you use.
Firetrail S3 Global Opportunities Fund (Managed Fund) pays a distribution semi-annually. Distribution payments are not guaranteed as they are subject to the earnings of the Fund. Any distributions paid will be automatically re-invested unless you advise otherwise.
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE
Information on this site is intended for Australian users only.
This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.
