Goal-Based Portfolio Update – Quarter Ending September 30 2025
Market Update
| October 31, 2025
Consistent Results
Consistent with our goals-based investment philosophy, our portfolio buckets performed strongly and as designed – each navigating market conditions in alignment with their specific timeframes and risk mandates.
Strength in Diversity
Across our portfolios, this quarter highlighted the importance of disciplined strategy, thoughtful diversification, and alignment with each investor’s time horizon. Each bucket; Short-Term, Medium-Term, Long-Term, and High Growth played its intended role, demonstrating how different portfolio constructions respond to shifting market conditions.
From capital preservation to growth acceleration, the frameworks we’ve built continued to deliver outcomes consistent with their objectives. As markets rallied across major equity regions, our blend of defensive positioning, diversified return sources, and targeted growth exposures helped reinforce the value of a structured, long-term approach to wealth creation and risk management.
The Profusion Short-Term Portfolio (2 to 5 Year Horizon)
The Short-Term Portfolio delivered around 1.1% for the quarter. We continue to prioritise capital preservation, aligned with our prioritisation for this portfolio. Whilst modestly trailing our cash +1.5% benchmark over 12 months (around 4.9% vs 5.7%), volatility and drawdowns remained well within expectations – exactly what this bucket is designed to deliver. Our low-duration, investment-grade credit positioning provided steady income generation whilst minimising sensitivity to interest rate movements. The portfolio’s defensive orientation meant it didn’t participate in the equity market rally, which is entirely appropriate given this bucket’s role in funding near-term goals and providing stability. View Research Report Here
The Profusion Medium-Term Portfolio (5 to 10 Year Horizon)
The Medium-Term Portfolio gained close to 4%, demonstrating the value of our diversified, multi-asset approach. This quarter reinforced why we construct this bucket with such careful attention to diverse return sources. Whilst equity markets dominated performance, our allocations to property, infrastructure, and alternative strategies all contributed positive returns from different sources – precisely the portfolio diversity we prioritise for sequencing risk management. Our balanced growth/defensive positioning meant we captured meaningful upside from equity strength whilst maintaining ballast through fixed income and alternatives, aligned with this bucket’s objective of delivering CPI+3% returns with measured risk – even if that sometimes means missing out on periods of market excess. View Research Report Here
The Profusion Long-Term Portfolio (10+ Year Horizon)
The Long-Term Portfolio returned around 5%, with its substantial growth asset allocation participating in the equity rally. The bucket benefited from both passive index holdings and active management selections. Particularly notable were contributions from small-cap exposures through our Australian small companies manager (returning about 15% for the quarter) and our long-term global growth manager (returning around 8%). This performance differential highlights why we blend low-cost passive exposure for core market participation with selective active management where we see genuine potential for value addition – a key tenet of our “Value for Money” principle. View Research Report Here
The Profusion High Growth Portfolio (10-Year Horizon with Maximum Growth Focus)
The PAG High Growth Portfolio delivered close to 7%, the strongest performance across our suite. The portfolio’s 100% growth asset positioning captured the full benefit of equity market strength, with standout contributions from our global small companies manager (around 14%), Chinese equities (around 12%), and our newly introduced geared allocation (around 8% since introduction). This concentrated growth exposure performed exactly as designed for long-term wealth accumulation, though we remain mindful that such positioning will experience greater volatility during market downturns. View Research Report Here
Outcome Focused
As we move through the final quarter of 2025, we remain committed to our disciplined, outcomes-focused approach. We’ll continue monitoring developments closely and will act decisively when opportunities arise that align with our investment philosophy. In the meantime, your bucket structure continues working exactly as designed.
Thank you for your continued trust in Profusion
