At Forrest Private Wealth, our investment philosophy underpins our financial planning advice, which ensures our client’s wealth benefits from long-term exposure to equity markets. We believe holding a well-diversified portfolio of predominantly dividend-paying businesses over a long-term period is essential in financial planning for wealth accumulation and, ultimately, retirement planning.
By following our retirement planning process, a Forrest Private Wealth financial planner stays true to their investment advice, ignoring the noise and pressures of the market to provide their clients with a stress-free retirement. At Forrest Private Wealth, our financial planners capitalise on an investment philosophy that provides predictable income streams from equity markets, setting clients up for their desired retirement.
Long Term Portfolio
The Long-Term Portfolio returned -0.80% in February, with weakness in global equity markets more than offsetting a stronger month for Australian shares and infrastructure. The primary drag came from the portfolio’s offshore growth managers. GCQ Flagship and Langdon Global Smaller Companies were the largest detractors as US technology stocks sold off sharply amid tariff concerns and stretched valuations. By contrast, SGH Emerging Companies was the standout performer, delivering a 4.0% return as domestic small caps benefited from the improving local outlook, while Ausbil Global Essential Infrastructure rallied strongly as investors sought defensive income in an uncertain environment. The portfolio’s private credit and alternative income holdings continued to deliver steady monthly returns, providing ballast against the equity volatility. Over the past year the model returned 2.82%, behind its inflation-plus target, reflecting the challenging period for global growth equities though we remain confident in the outlook moving forward.
Short Term Portfolio
The Short-Term Portfolio returned 0.46% in February, marginally ahead of its cash plus benchmark and continuing to deliver steady, predictable income. Every underlying holding contributed positively during the month, a clean sweep that reflects the quality and resilience of the credit and fixed income managers in the portfolio. Western Asset was the standout as duration exposure benefited from the flight to safety in bond markets, while La Trobe, MA Priority Income and MA Secured Real Estate Income each delivered reliable monthly income underpinned by their secured lending positions. Over the past year the model returned 5.23%, comfortably ahead of its cash-linked benchmark, demonstrating that a disciplined allocation to high-quality credit continues to reward patient investors with returns well above cash.
Micro Cap Report
The MicroCap Portfolio returned -1.15% in February, a modest pullback for a portfolio concentrated entirely in small and microcap equities, which we always expect to be the most volatile corner of the market. SGH Emerging Companies was the clear standout, returning 4.0% and contributing 1.28% at the portfolio level over the quarter, a result that underscores the value of manager diversification even within a concentrated style. On the other side, Bennelong Emerging Companies and Spheria Global Opportunities were the primary quarterly detractors as parts of the small cap universe gave back gains from earlier months. Ophir Global High Conviction held flat, providing relative stability in the global sleeve. Over the past year the model has returned 11.17%, with the three-year annualised return of 13.44% demonstrating the long-term compounding potential of this strategy for investors with the patience and risk tolerance to ride out short-term volatility.
Forrest Private Wealth’s discipline in providing financial planning, retirement planning, and wealth management services to its clients allows our clients to benefit from years of experience providing financial advice through major impacts to equity markets where staying the course has helped them.
Forrest Private Wealth has a dedicated team of financial planners and support staff providing clients with peace of mind in working towards and achieving their life goals.