Welcome to the third edition of The Edge for 2026.

I hope this edition finds you well as we approach the end of what has been a relatively mild Australian winter.

The past quarter has once again highlighted the resilience of financial markets. Investors have navigated an environment shaped by ongoing geopolitical tensions, persistent inflation pressures and evolving interest rate expectations.

Despite these challenges, markets demonstrated their ability to look beyond short-term uncertainty, recovering strongly and rewarding disciplined, long-term investors. As a result, the majority of Shadforth clients benefited from the upswing, with portfolios delivering strong double-digit returns over the 12 months to 30 June 2026.

Beyond the markets, a significant legislative development occurred in June with the passage of changes to the taxation of capital gains and negative gearing. These reforms have the potential to reshape the optimal mix of investment structures and strategies for many Australians, reinforcing the importance of proactive financial planning.

With the new rules scheduled to take effect from July 2027, now is an ideal time to speak with your Shadforth adviser to understand any implications for your financial strategy and ensure you are well positioned for the future.

Periods of change also provide a valuable opportunity to revisit broader wealth planning considerations. In this edition, we explore the growing importance of intergenerational wealth transfer and estate planning, including how thoughtful structures and careful planning can help ensure your wealth is distributed according to your wishes and continues to benefit the people and causes that matter most.

As always, our Research team provides their latest market insights, offering commentary on economic developments and performance across the major asset classes over the quarter.

I hope you enjoy this edition of The Edge. As always, if you have any feedback regarding our service or advice, I would be delighted to hear from you at ceo@sfg.com.au.