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 strong May, June was a quieter month for the Long Portfolio. While headlines remained busy — from shifting trade dynamics to ongoing geopolitical noise — the overall tone was more one of consolidation than concern.
Locally, the economic picture was mixed. Consumer confidence edged higher, helped by mid-year sales and a resilient job market. The “time to buy a major household item” index hit its highest level in over two years, suggesting households are feeling a little more comfortable spending again. That said, confidence in the broader economic outlook softened. As expected, the RBA held rates steady. With inflation continuing to ease and growth showing signs of slowing, markets are still pricing in the possibility of further rate cuts later this year — a shift that could provide support if conditions deteriorate.
While the market lacked clear direction, dislocation often precedes opportunity, and our approach remains unchanged: disciplined, patient, and focused on fundamentals.
Short Term Portfolio
The Short SMA delivered another steady result in June, returning +0.56% for the month. In a market still grappling with uncertainty — from central bank signals to geopolitical tensions — consistency remains a valuable commodity. This portfolio continues to do what it’s built for: downside protection and generate stable income.
June saw the RBA leave rates unchanged at 3.85%, a decision that caught some by surprise. While it’s likely that cash rates have peaked, the pace and timing of any future cuts remain uncertain. Governor Bullock described the move as “a question of timing, not direction,” highlighting the RBA’s preference for more complete quarterly inflation data before making further adjustments.
Globally, economic conditions remain reasonably solid despite ongoing challenges. China’s slowdown is worth watching, but broader data continues to show resilience. Volatility is still a feature of markets, and while it’s easy to get caught up in headlines, staying focused on fundamentals is key. In this environment, selective opportunities are emerging.
The Short SMA remains a core defensive holding. It’s not chasing returns. It’s managing risk, staying disciplined, and letting quality assets generate a steady cash flow.
Micro Cap Report
Global equities rose in June as investors largely looked through near-term macroeconomic uncertainty caused by trade wars and conflict in the Middle East. Instead, investors focussed on the positive aspects of the prospect of trade deals being reached, the resilience of the US economy, and the global rate cutting cycle.
Domestically, inflation appears to have eased enough to support further interest rate cuts which historically has spelt good news for small caps. Although we did not see a rate cut in early July as broadly expected, Governor Bullock described the move as “a question of timing, not direction” providing the market with adequate guidance.
June capped off a positive financial year for the Microcap portfolio with a 12 month return of 18%. A portfolio review will be conducted with an expectation of reducing exposure to managers who have not contributed to performance and backing managers whose core investment beliefs align to their execution.
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.