L1I
L1I.ASXLatest Earnings
Unitholder Quarterly Report for June 2026
15 July 2026
L1 Capital International (Unhedged) Active ETF returned +2.6% (net of fees) in Q2 2026, significantly underperforming the MSCI World Index benchmark return of +12.5%, driven by concentrated market dominance of AI-capex winners (particularly semiconductors and memory) and momentum investing that excluded the Fund's portfolio positioning. The Fund maintains a long-term value-focused strategy, having increased exposure to Nvidia while reducing Salesforce and CDW positions, and continues to identify compelling valuations in non-AI-sensitive high-quality businesses despite acknowledging an increasingly narrow and potentially bubble-prone market characterized by extreme concentration. Key points: Fund had 22 investments with top 10 positions representing ~60% of portfolio; key contributors included TSMC (+2.0% return contribution), Amazon.com (+1.0%), AerCap, Alphabet, Nvidia, and Visa (each +0.5% or greater); Increased Nvidia investment to top 5 holding based on view that AI is rapidly becoming more capable and capex will be stronger for longer; Nvidia's earnings and cash flow expectations have nearly doubled since initial investment 12 months ago; Identified compelling value opportunities in non-AI-sensitive high-quality businesses including American Express, Apollo Group, Danaher, HCA, and ICE trading at significant discounts to fair value assessments
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Unitholder Quarterly Report for June 2026
L1 Capital International (Unhedged) Active ETF returned +2.6% (net of fees) in Q2 2026, significantly underperforming the MSCI World Index benchmark return of +12.5%, driven by concentrated market dominance of AI-capex winners (particularly semiconductors and memory) and momentum investing that excluded the Fund's portfolio positioning. The Fund maintains a long-term value-focused strategy, having increased exposure to Nvidia while reducing Salesforce and CDW positions, and continues to identify compelling valuations in non-AI-sensitive high-quality businesses despite acknowledging an increasingly narrow and potentially bubble-prone market characterized by extreme concentration. Key points: Fund had 22 investments with top 10 positions representing ~60% of portfolio; key contributors included TSMC (+2.0% return contribution), Amazon.com (+1.0%), AerCap, Alphabet, Nvidia, and Visa (each +0.5% or greater); Increased Nvidia investment to top 5 holding based on view that AI is rapidly becoming more capable and capex will be stronger for longer; Nvidia's earnings and cash flow expectations have nearly doubled since initial investment 12 months ago; Identified compelling value opportunities in non-AI-sensitive high-quality businesses including American Express, Apollo Group, Danaher, HCA, and ICE trading at significant discounts to fair value assessments
Unitholder Quarterly Report for March 2026
L1 Capital International (Unhedged) Active ETF delivered a -13.1% return (net of fees) in the March 2026 quarter, significantly underperforming the MSCI World benchmark return of -6.1%, primarily due to no energy exposure during elevated oil prices, weakness in high-quality software holdings, and broad market preference for near-term beneficiaries over fundamentally sound businesses. The manager views current market dislocations as a compelling opportunity for long-term investors, noting that nearly all portfolio companies are trading at or below their assessed fair value ranges, a rare occurrence last seen in late 2022. Key points: Rare valuation opportunity: nearly all portfolio companies trading at or below lower end of assessed fair value ranges, last seen in late 2022, presenting compelling long-term risk-adjusted investment opportunities; High-quality portfolio fundamentals remain strong: despite significant share price weakness, underlying operational performance of most portfolio companies remains robust with double-digit earnings growth in many holdings (e.g., Mastercard, Visa); Strategic portfolio adjustments: manager initiating positions in high-quality businesses from 'Bench' at attractive prices while trimming positions that reached fair value, demonstrating disciplined capital allocation
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