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
September was a mixed month for markets, but the Long Portfolio stayed on track. Global shares, helped by the U.S. cutting interest rates for the first time in nearly a year, gave markets a boost, even though the Fed warned it’s not ready to cut again just yet. Back home, the RBA kept rates steady at 3.60%, with inflation still a concern. Unemployment held firm at 4.2%, showing the economy remains steady.
Smaller companies where the Long portfolio has a slight tilt, are starting to bounce back, and we’re seeing signs of renewed growth. Our approach remains steady and patient aiming for long-term results, not short-term hype.
Short Term Portfolio
The Short portfolio returned +0.46% in September, continuing its consistent performance in a complex market environment. Over the past 12 months, the strategy has delivered a stable return within a volatile market — a reflection of its disciplined, defensive design.
Bond markets were influenced by shifting global monetary policy. The US Federal Reserve cut rates, lifting sentiment across risk assets, while Australian bond returns were flat, with yields steady following the RBA’s August cut. European and UK bonds were stable, and Japanese yields rose on hawkish signals.
The Short portfolio remains well-positioned, with diversified exposure to high-quality fixed income managers. Credit-oriented holdings continued to perform steadily, contributing to the portfolio’s resilience. In uncertain conditions, the strategy continues to do what it’s built for: manage risk, stay disciplined, and deliver stable returns.
Micro Cap Report
Micro and small cap equities continue to benefit from the improved investment environment. Liquidity is returning to this asset class and high-quality companies are being revalued upwards. Management teams are now refocussed on growth with cash generation and balance sheets strong given the focus in the last cycle. This puts micro and small cap equities as an asset class on a solid growth trajectory.
We made a change to the portfolio during the quarter closing out our investment in the OC Micro Cap fund in favour of Eley Griffiths Small cap fund. We see Eley Griffiths having better alignment to our investment philosophy over the long term.
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.