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
After a steady June, July brought a bit more movement – both in markets and headlines. Markets were all over the place, with geopolitical tensions and trade uncertainty prevailing. Still, by month-end, most major indices had nudged higher – and the Long portfolio was no different.
In the US, trade deals were signed with several countries ahead of the August deadline, including the EU, Japan, and Indonesia. Australia was also included. These developments helped settle some nerves and provide a clearer path forward – markets like certainty.
Locally, the Reserve Bank held rates steady, awaiting further signs that inflation is easing. And, inflation for the June quarter fell to a four-year low (2.1%). Unemployment ticked up slightly, but overall conditions remain stable – a positive backdrop.
For the Long Portfolio, we say this every time, but quality and fundamentals remain our true North. While markets are moving quickly, we’re not chasing trends. Instead, we’re staying disciplined and patient – always looking and open for opportunities that align with our long-term strategy. Think fisherman, not sprinter.
Short Term Portfolio
The Short SMA delivered another steady result in July, returning 0.42% for the month. Income generation remains strong, and volatility low — exactly as intended.
While most holdings performed as expected, Western Asset dipped slightly amid a softer month for Australian bonds. This reflects a broader pause in fixed income markets, as expectations for rate cuts were already priced in and managers held steady positions.
Equities had a strong month, with both local and global markets rising on the back of resilient earnings and easing inflation. Bonds, by contrast, were flat to slightly negative — a classic “risk-on” environment.
Through it all, the Short SMA continues to do its job: protect capital, manage risk, and deliver consistent income.
Micro Cap Report
Macro conditions remain positive whilst there is relative political stability globally. Despite the headlines, investors remain cautiously optimistic. Monetary policy easing has assisted the small cap market in July and will likely continue to assist this portfolio in the near term. Investment managers are looking to smaller caps to add better value to their portfolios.
Small caps have continued to outperform large caps again in July. There is a long way to go to close the gap in relative valuations, but it has been good to see the small cap sector making headway.
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.