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Performance of the Old Mill Portfolios

After some sharp falls in assets in June, there has been some respite in July both for equities and fixed interest.

11th August 2022

Performance of our standard portfolios

Performance since the last insight (Friday 15 July 2022 – Friday 5 August 2022)

As shown in the graph below, portfolios all rose over the period as global equities and bonds reversed the falls from June.

Performance over the last year (up to Friday 5 August 2022)

We have seen falls in all portfolios over the last year in the face of global economic and political turmoil and rising inflation. It has been disappointing to see the biggest falls in the lower risk portfolios, with a combination of falling equity and pressure on fixed interest causing this.

Longer term performance of standard portfolios (up to Friday 5 August 2022)

Investing is a long-term pursuit and while we can look at short term performance to explain what you are experiencing, we hope you take reassurance from the longer-term results with the ten-year performance to Friday 5 August shown above.

Performance of our sustainable portfolios

As shown in the graph below, sustainable portfolios saw a good recovery over the period with international stocks which forms a greater percentage of the sustainable portfolios (30%) than in the standard portfolios (20%) seeing good rises. Smaller companies and international stocks also saw a rebound after some sharp falls in 2022.

Performance over the last year (up to Friday 5 August 2022)

Investments in the sustainable portfolios exclude a number of industries to reduce the exposure to carbon emissions. One of the impacts of this over the year has been little or no exposure to energy industries such as oil and gas which have seen strong performance in the face of the Ukraine war. The impact of this was seeing sharper falls since the beginning of the year. There has been some recovery since mid-June and portfolios have recovered some returns.

Longer term performance of Sustainable portfolios (up to Friday 5 August 2022)

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.

Portfolio Investments

The table below shows the performance of a number of asset classes for the last year and over the last ten years as at close of play on Friday 29 July.

Looking at the underlying asset classes this reinforces the short term pressure investments have been under for the last year but also the higher returns available over longer time periods.