The ASX announcement from L1 Capital International (Hedged) Active ETF (ASX:L1HI) is a quarterly portfolio disclosure notification. It sets out the Fund’s holdings as at 31 March 2026 and identifies portfolio weights for each underlying security.

Equity Trustees Limited (ACN 004 031 298, AFSL 240975), acting as Responsible Entity for the Fund, signed the disclosure through director Andrew Godfrey. The release was authorised for lodgement with the ASX in line with regular fund disclosure practice.

The Fund holds a concentrated portfolio of global businesses across financial services, technology, industrials, healthcare and consumer sectors. Cash comprises 3.82% of the portfolio, made up of 7.71% cash Assets and -3.89% net unrealised loss on foreign currency hedging instruments.

The portfolio disclosure is one of the most informative routine announcements issued by an active ETF. It allows investors, advisers and asset consultants to identify the underlying securities, the geographic and currency profile of the strategy, sector exposures and the cash position, including any drag from hedging activity.

L1 Capital is well known in Australia for its disciplined approach to value-oriented and concentrated global equity investing. The Hedged Active ETF version of its international strategy is designed to provide Australian investors with similar economic exposure to the underlying portfolio while reducing the impact of AUD/USD currency fluctuations.

Why This ASX Announcement Matters

For ETF investors, quarterly portfolio disclosures are critical transparency events. They allow investors to verify that the strategy is being implemented as described, assess concentration risk and compare the fund with peers and benchmarks.

L1HI provides Australian investors with currency-hedged exposure to a hand-picked basket of global companies. By disclosing portfolio weights to two decimal places, the Fund enables analysts to model expected sector exposures and pin down its style biases.

For active ETFs that quote on the ASX, periodic portfolio disclosure is particularly important because retail investors who buy units on-market may be doing so without direct insight into individual holdings between disclosure dates.

Active ETFs sit between traditional managed funds and passive index ETFs. They offer the convenience of on-market trading via the ASX while providing active stock selection. Transparent portfolio disclosure helps investors understand exactly how the strategy is being implemented at a given point in time.

For financial advisers and self-directed investors, the disclosure also assists with portfolio construction and risk management. Knowing the specific names and weights helps avoid unintended over-exposure to particular companies, sectors or themes when combined with other holdings.

Key Details from the Announcement

The top holdings in the L1HI portfolio as at 31 March 2026, by weight, include AerCap Holdings N.V. (9.46%), Amazon.com Inc (7.71%), CRH plc (6.36%), Microsoft Corporation (6.27%), Taiwan Semiconductor Manufacturing Co (5.44%), Mastercard Inc (5.20%), Visa Inc (5.14%), Booking Holdings Inc (5.05%) and Intercontinental Exchange Inc (4.95%).

Other meaningful positions include Jacobs Solutions (4.81%), Danaher Corporation (4.22%), Nvidia Corporation (3.50%), Intuit Inc (3.44%), Marsh &Amp; McLennan (3.08%), London Stock Exchange Group (2.93%), Salesforce (2.57%), CDW Corporation (2.55%), Alphabet (2.37%), Uber Technologies (2.35%), Weir Group (2.01%) and American Express (1.84%).

Smaller positions are held in Apollo Global Management (1.54%), Tetra Tech (1.48%), HBX Group International (0.98%) and HCA Healthcare (0.94%). Cash made up 3.82% of the portfolio when adjusted for the impact of foreign currency hedging.

The disclosed portfolio illustrates L1 Capital’s preference for companies with durable Business models, strong competitive positions and the ability to compound returns over time. Names such as Marsh & McLennan, Apollo Global Management and Intercontinental Exchange suggest a focus on financial services platforms with structural growth characteristics, while industrials such as Jacobs Solutions, Tetra Tech and Weir Group point to a thematic interest in infrastructure and engineering services.

The presence of technology mega-caps alongside select consumer and healthcare positions also indicates a balanced approach across growth styles and defensive characteristics, supported by a small cash allocation.

  • Portfolio is concentrated, with the top 10 holdings representing the bulk of the Fund.
  • Heavy exposure to global financial infrastructure (Mastercard, Visa, ICE, LSE, American Express).
  • Significant technology exposure (Amazon, Microsoft, TSMC, Nvidia, Alphabet, Salesforce, Intuit).
  • Industrials and services represented by AerCap, CRH, Jacobs, Danaher, Weir Group and Tetra Tech.

How This Could Affect L1HI Units and the L1HI Share Price

As an active ETF, the value of L1HI units is driven primarily by the performance of the underlying basket, adjusted for currency hedging and fund-level fees and expenses. The publication of portfolio weights does not alter the value of the Fund but does inform expectations of how it may behave in different market conditions.

A heavy weighting to AerCap, for example, may make L1HI more sensitive to global aviation and aircraft leasing cycles, while strong exposure to global payments names such as Visa, Mastercard, Amex and ICE provides Leverage to global consumer activity, Capital Markets volumes and listed market infrastructure.

Investors tracking the L1HI share price should also remember that the unit price typically tracks the net asset value (NAV) closely, but can experience short-term premiums or discounts depending on market Liquidity and trading flows.

Unit prices for hedged active ETFs are also influenced by the cost of currency hedging. The disclosed -3.89% net unrealised loss on foreign currency hedging within the cash component reflects a snapshot at 31 March 2026 and may shift over subsequent periods depending on currency movements and Interest Rate differentials.

Investors who hold L1HI alongside unhedged global equity exposure may use the disclosure to better understand the net currency profile of their broader portfolio.

Industry and Market Context

Active ETFs have become a fast-growing segment of the Australian fund management industry, offering retail and adviser-led investors single-trade access to professionally managed strategies through the ASX. The Hedged Active ETF structure removes most of the foreign exchange risk for Australian dollar investors, which appeals to those seeking equity returns without taking on AUD/USD Volatility.

L1 Capital is a well-established Australian Fund Manager, and its international strategy aims to identify high-quality global businesses trading at attractive valuations. The Fund competes with passive global equity ETFs and a growing range of active managers offering similar exposures on the ASX.

Global equity markets in recent years have seen significant divergence between large-cap technology winners and the rest of the market, with periodic rotations into value, financials and cyclical sectors. L1HI’s positioning across diversified financials, industrials, technology and healthcare provides a particular flavour of global exposure compared to standard cap-weighted benchmarks.

The Hedged Active ETF format also reflects the broader trend in Australia of converting traditional unit trusts into ASX-quoted active ETFs, making them easier to access for retail investors and SMSFs.

Investor Reaction and Market Watch Points

Investors and advisers reviewing the disclosure will be focused on changes in sector weights compared with the prior quarter, any new or exited positions, and the size of the hedging-related cash drag relative to historical norms.

The hedging cost embedded in the cash line (the -3.89% net unrealised loss on foreign currency hedging) is also a useful gauge of how currency hedging has affected returns over the period.

Investors comparing global equity ETFs on the ASX often look at the trade-off between fund fees, management style, geographic exposure, currency policy and historical performance. The L1HI portfolio disclosure provides high-quality input for that comparison, particularly when read alongside performance data published in the Fund’s periodic updates.

For advisers building client portfolios, the disclosure supports look-through analysis to ensure that aggregate exposures across multiple funds remain consistent with stated Investment objectives.

Risks and Uncertainties

L1HI is exposed to global equity Market Risk, single-stock risk, sector concentration risk and counterparty risk through its hedging arrangements. Currency hedging reduces but does not eliminate FX-related volatility.

Active strategies may underperform or outperform their benchmarks over varying periods. Past performance is not a reliable indicator of future performance, and investors should consult the Fund’s Product Disclosure Statement (PDS) and Target market Determination (TMD) before investing.

Investors should remember that hedging strategies do not eliminate all currency-related impact, and that hedge ratios can vary over time. The Fund’s performance will reflect both stock-specific factors and the outcomes of its hedging arrangements.

As is standard with any actively managed strategy, periods of underperformance against benchmarks can occur, particularly during periods of style rotation or extreme market dispersion.

What Happens Next?

L1HI is expected to continue providing periodic portfolio disclosures to the ASX as required under its constituent documents and applicable regulation. Investors should also watch for monthly NAV updates, distribution announcements and any commentary from L1 Capital on portfolio positioning.

Over the coming quarters, L1 Capital is expected to continue managing the portfolio in line with its global value-oriented investment philosophy. Investors should watch for commentary on individual holdings, especially during periods of significant macroeconomic or sector-specific events that might prompt portfolio adjustments.

Updates regarding net flows into and out of the Fund, distributions and any changes in the management of currency hedging are also relevant for long-term unit holders.

Final Takeaway

The quarterly portfolio disclosure for L1 Capital International (Hedged) Active ETF (ASX: L1HI) provides a clear snapshot of how the manager is positioned across global equities as at 31 March 2026.

For Australian investors using active ETFs to gain offshore equity exposure, the disclosure reaffirms the Fund’s focus on high-quality global names across financial infrastructure, technology, industrials and healthcare. As always, prospective and existing unitholders should consult the PDS and TMD and consider whether the strategy aligns with their objectives.

For Australian investors seeking professionally managed global equity exposure with currency hedging, L1HI’s portfolio disclosure provides important reassurance about strategy implementation. As always, investors should consider their broader portfolio context and the role that an active global equity ETF plays in their overall financial plan.

The information should be considered alongside the most recent PDS and TMD before making any investment decision.