Performance of the Old Mill Portfolios
The first half of the year, proved to be a strong half for equities with the US technology sector again surging ahead, driven by hopes of an Artificial Intelligence (AI) revolution. Our diversified portfolios will have benefited from this but other areas – global commercial property, for example, has been a drag on performance and defensive assets are being impacted by expectations of future interest rate rises. In the long term, higher yields in defensive assets will add positively to portfolios but looking back returns have been largely flat.
7th July 2023
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Gavin Jones See profile
Performance since the last insight (from Friday 9 June 2023 to Friday 30 June 2023)
Portfolios were largely flat in the period since the last insight but there were falls in value through the middle of June as the persistence of inflation and the prospects of higher interest rates through this year were incorporated into market prices.
Performance over the last year (up to Friday 30 June 2023)
Looking back over the last year, performance over most portfolios has been flat or positive. The initial shock of the invasion of Ukraine and consequences of rising inflation and interest rates had been incorporated into market prices by the middle of 2022. You can see falls in assets through September but performance since has been reasonably flat as companies and assets adjust to the economic pressures in the inflationary environment.
Longer term performance of standard portfolios (up to Friday 30 June 2023)
Investing is a longer-term pursuit and taking a look at the ten year graph to July, the portfolios are showing a more robust picture depending on the risk you have taken.
Sustainable portfolios performance since the last insight (from Friday 9 June 2023 to Friday 30 June 2023)
Sustainable portfolios performance has been slightly higher than standard portfolios due to US stocks being buoyed by the news of Artificial Intelligence. The sustainable portfolios have a higher weighting towards global equities so have benefited more from this. Standard portfolios have an overweight to the UK, which has lagged over the last few months due to, among other things, pressure on commodity prices, with the UK market overweight in mining companies.
Performance over the last year (up to Friday 30 June 2023)
The impact of global stocks outperforming the UK stock market has also meant sustainable portfolios have outpaced standard portfolios marginally over the year.
Longer term performance of Sustainable portfolios (up to Friday 30 June 2023)
As the sustainable portfolios have only been available for the last five years this is a shorter timeframe but still showing the potential upside over longer periods.
Below shows the performance of a number of asset classes for the last year and the annualized return over five years as at close of play on Wednesday 30 June.
