The S&P/ASX 200 Accumulation Index fell 1.0% for the week, weighed down by weakness in energy (-4.1%). The Small Ordinaries Index outperformed, rising 0.4%. Australia lost 5,400 jobs in August against expectations of a 21,000 gain; labour force participation edged lower, while unemployment remained steady at 4.2%. Australia has now set a 2035 emissions-reduction target of 62-70% below 2005 levels (the internationally agreed reference year for emissions targets under the Paris Agreement framework), alongside its 43% target for 2030, while reiterating its commitment to net zero by 2050.
In the US, the S&P 500 and Small Cap 600 rose 1.2% and 1.0% respectively, while the MSCI World Index (AUD) gained 1.7%, all lifted by the Federal Reserve’s first 2025 rate cut (0.25%). The Fed’s latest dot plot implies two further cuts in 2025 and a gradual move toward 3.25-3.50% by the end of 2026. However, Chair Powell’s press conference comments were slightly hawkish, warning of the risks that inflation may not prove transitory and signalling that he is not yet convinced of an extended easing cycle, preferring a risk management approach. His comments pushed intermediate to long-term bond yields higher, as markets priced in the possibility that rates may stay elevated for longer. The Bank of England and Bank of Japan both left rates unchanged.
Gold extended its rally, up 1.2% for the week and 11.1% over the past month, nearing US$3,700. Looking ahead, we will be watching the People’s Bank of China’s loan prime rate decisions (expected to be unchanged at 3% for one-year and 3.5% for five-year) and follow-up speeches from Fed officials after last week’s rate decision, while global leaders meet in New York for the UN General Assembly.
Stock Watch
Iluka Resources (ASX: ILU)
Iluka Resources, an Australian-based mineral sands producer and explorer, recently announced that it would temporarily suspend production at Cataby and SR2 due to subdued demand for mineral sands, which are commonly used in house and car paints. We viewed the share price pullback in response to the announcement as an overreaction, exceeding the earnings impact and a sensible strategic decision to free up inventory, generate cash savings and preserve balance sheet strength while continuing to meet customer requirements. We saw this as a buying opportunity to gain exposure to rare earths and Iluka’s share price has since largely recovered. The company has multiple near-term catalysts to unlock value for shareholders, including the commissioning of Balranald and progress on EP3 construction and flow-sheet de-risking in October.
Held in: WAM Leaders (ASX: WLE), WAM Income Maximiser (ASX: WMX) and Wilson Asset Management Leaders Fund
Energy One (ASX: EOL)
Energy One is a provider of mission critical trading and compliance software for electricity markets (physical and derivatives). In Australia it has a 50% market share and has historically grown its top line at 13% per annum. The company has recently invested in Europe, expecting this region to be a major contributor to growth in the coming years as new countries and market participants enter energy trading. Energy One gained 12% in the past week as continued interest in its strong result drove renewed focus. The company has stated its goal of growing annual recurring revenue (ARR) by 15-20% this year while guiding to a cash EBITDA margin of 20-22%. Longer term, we think this is a compelling investment as a fast growing and highly profitable technology company benefitting from the growth in renewable energy.
Held in: WAM Capital (ASX: WAM), WAM Microcap (ASX: WMI), WAM Research (ASX: WAX), WAM Active (ASX: WAA) and Wilson Asset Management Founders Fund
Intuit (NASDAQ: INTU)
Intuit is a leading provider of consumer and business software solutions, with brands including QuickBooks and Mailchimp. At its investor day last Thursday, management provided a positive update, highlighting how the company is well-positioned to leverage artificial intelligence (AI) through its state-of-the-art technology stack, enabling AI agents to be seamlessly integrated across its product suite, which we believe will serve as a catalyst for the stock. As an attractively valued AI winner and position as a category leader with clear momentum into FY2026, Intuit is a core holding in the WAM Global portfolio.
Held in: WAM Global (ASX: WGB)
BE Campbell (Allegro Funds)
BE Campbell is a third-generation, family-owned pork and value-added meat processing company based in Sydney with a national footprint. The business is a top-three player in the pork processing market and has a long-standing reputation for operational excellence and strong customer service across supermarkets, foodservice, butchers and distributors. Our investment partner Allegro Funds acquired BE Campbell in August 2025 and will look to accelerate revenue growth and profitability over its hold period by enhancing value-adding capabilities, introducing new product formats and strengthening the company’s commercial platform. We look forward to seeing BE Campbell grow revenue and scale its operations to meet the demands of the fast-evolving protein sector.
Held in: WAM Alternative Assets (ASX: WMA)
The US credit impulse is strong, supporting the cycle
Recently soft US labour market data have caused some investors to worry about recession risks. However, we highlight that recession is extremely unlikely when credit is flowing through the economy. Bank loans and fiscal deficits create deposits, while deposits can be used to create loans in the shadow banking (non-banking) system. High frequency data suggests bank credit and government debt are expanding, while primary dealers (at the core of the financial system) are rapidly growing leverage with market participants. Based on these data points, we see the US credit impulse as positive overall, supporting economic growth. The main reason why we are experiencing a soft patch in certain indicators is that high uncertainty post-Liberation Day has caused the private sector to hold off on borrowing, spending and hiring decisions. However, high uncertainty is now fading away, allowing the strong credit impulse to work its way through the economy. As such, there is still cyclical support for company earnings. The key challenge from here is whether the strength of economic recovery will cause inflation and rates pricing to shift higher. However, the market narrative suggests that it would take a large rise in bond yields for the equity market to take notice. For retail shareholders, this is important as strong credit growth underpins company earnings and share prices, which directly influence portfolio returns.
Upcoming Wilson Asset Management Events
October Shareholder Presentations
The Wilson Asset Management and Future Generation teams look forward to meeting with shareholders at our upcoming Shareholder Presentations in October. Meet the Wilson Asset Management investment team to hear their market outlook, high-conviction stock picks and discuss some of the key themes influencing the investment portfolios. Learn more about the Future Generation companies and how they invest for impact, delivering both investment and social returns for shareholders.
Register using the following links:
- Newcastle | Thursday, 16 October 2025
- Gold Coast | Tuesday, 21 October 2025
- Toowoomba | Wednesday, 22 October 2025
- Noosa | Thursday, 23 October 2025
WAM Global FY2025 Results Q&A Webinar
Tomorrow, Tuesday 23 September 2025 WAM Global are hosting their FY2025 Results webinar. The investment team will provide investors with an update global markets, recent company meetings across the US, Europe and Asia and answer your questions. You can submit your questions when registering here
Index returns performance table
