The final quarter of 2024 delivered tamer performance across portfolios, rounding out a strong year for investment performance. It was a choppy quarter, as strong returns in November offset declines and flat returns in December and October. The quarter was eventful, with significant developments such as the US Presidential election and interest rate cuts from the Federal Reserve.

From 1 July 2025, new rules under the Aged Care Act will significantly impact the cost of residential aged care in Australia. These reforms aim to create a sustainable aged care system while ensuring that government support is directed to those with the greatest financial need. While these changes address long-standing funding issues, they also introduce complexities for families planning aged care for themselves or loved ones.

Providing for the education of your children or grandchildren is one of the most meaningful financial gifts you can offer. In Australia, education costs continue to rise, particularly when factoring in private schooling, extracurricular activities, uniforms, and technology. For example, the cost of educating a child born today at a private school is likely to exceed $200,000 for primary and secondary education. In some instances, the total cost can climb significantly higher, reaching several hundred thousand dollars beyond this estimate.

We continuously strive to provide insightful investment strategies that strengthen portfolio resilience and leverage opportunities in global markets. Thanks to their distinctive characteristics and timely appeal, UK equities have become a key area of interest. Below, we unpack what makes the UK equity market unique, and why it stands out among global peers.

We are thrilled to announce that Peter Leggett and our team-based approach have once again been recognised in the Barron's Top 150 Financial Advisers list for 2024. This marks the third consecutive year of being honoured, reflecting our unwavering commitment to delivering exceptional service and providing innovative solutions tailored to our clients' evolving needs.

Global markets faced challenges in October due to rising bond yields, a stronger USD, and mixed economic signals. The Australian market fell, weighed down by declines in materials and energy, while financials and healthcare gained. Inflation eased, but diminished expectations for RBA rate cuts and stretched valuations added pressure.

Life is full of uncertainties. While we cannot predict what the future holds, we can plan for it. Personal insurance—encompassing life insurance, total and permanent disability (TPD) insurance, trauma insurance, and income protection—is an essential part of any comprehensive financial plan. Yet, many Australians remain underinsured or uninsured, often underestimating the financial and emotional toll an unforeseen event can have on themselves and their families.

In this episode of Arrow Insights, Mark O'Leary and Mathew Ashton discuss the crucial role insurance plays in safeguarding the wealth of business owners and affluent families. Despite the common assumption that wealth eliminates the need for insurance, they explain why continuity strategies remain vital. From securing business assets to protecting family wealth, insurance can ensure that assets aren't liquidated prematurely due to unforeseen circumstances like death or disability.

In the September quarter, the Australian equity market outperformed global peers, driven by strong mining stocks and a boost from Chinese stimulus, while inflation improvements supported expectations of future RBA rate cuts. Global equity markets also rose, benefiting from lower inflation, resilient economic growth, and optimism around earnings, though risks of a recession remain, especially in the U.S. In emerging markets, Chinese stimulus measures led to a strong recovery in equities, with Chinese markets surging in September and overall emerging markets outperforming developed markets for the quarter.

The third quarter of 2024 delivered strong performance across portfolios, with solid contributions from various asset classes. It was a volatile quarter, marked by sharp declines in early August, followed by a steady recovery through the remainder of the period. The quarter was eventful, with significant developments such as the Federal Reserve’s first expansionary move since 2020 and policy tightening from the Bank of Japan, which pushed equity market volatility to its highest level since March 2020.

As parents or grandparents, you have a unique opportunity to set up a secure financial future for your children or grandchildren. Investing for them can provide a substantial head start, whether it’s for education, property, or simply helping them navigate adult life. However, with numerous investment options and Australian tax laws to consider, it’s essential to make informed decisions that align with your goals and the financial well-being of your loved ones.

In this episode of Arrow Insights, Mathew Ashton and Peter Leggett delve into the concept of "giving while living" and the evolving approach to family succession planning. As the Baby Boomer generation faces decisions around wealth transfer, they discuss the benefits of creating a living legacy—helping family members and philanthropic causes during one’s lifetime. Peter highlights how this modern approach allows individuals to experience the joy of giving while actively shaping their legacy.

With falling interest rates, term deposit yields are set to decline, posing reinvestment risk for income-seeking investors. Alternatives like corporate bonds, private debt, and structured credit can offer higher returns. Arrow Private Wealth’s Lifestyle and Liquidity Portfolios provide diversified solutions to balance risk and enhance income generation.

Superannuation is an essential part of preparing for retirement in Australia. Understanding the various types of contributions that can be made is key to maximising your super balance and securing a comfortable future. This guide covers every type of super contribution, providing insights into how each works and the benefits they can offer.

In August, the Australian equity market saw modest gains, driven by strong bank performance despite weakness in miners, energy, and small caps, with inflation data suggesting potential interest rate cuts in 2025. Globally, equities rose, recovering from early declines, supported by disinflation and prospects of rate cuts in the US, with defensive sectors leading the way. Europe outperformed, while Japan lagged due to interest rate hikes. Emerging markets saw mixed results, with China struggling in real estate and manufacturing, but strong growth in India, ASEAN countries, and a rally in Brazil.

In this episode of Arrow Insights, Ryan Synnot and Peter Leggett explore the opportunities and challenges within emerging markets. As economies such as India, Thailand, and Indonesia rise, they discuss how these markets offer attractive growth potential while also posing risks, like geopolitical instability. They provide insights into why these regions are increasingly being incorporated into global investment portfolios, offering long-term opportunities for diversification and growth.

Infrastructure is a unique and increasingly popular asset class that offers investors the potential for stable, long-term returns. With its growing significance in global investment portfolios, understanding the intricacies of infrastructure investments is essential for anyone looking to diversify their portfolio or seek opportunities in this sector.

In July, the Australian equity market outpaced global equities, driven primarily by a strong performance in the banking sector. Positive inflation data and a potential easing of interest rates by the Reserve Bank of Australia (RBA) further bolstered the market, although global uncertainties, including tightening in Japan and weak Chinese growth, dampen the broader outlook.