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Performance of the Old Mill Portfolios

The optimistic tone of markets in January was followed by a more cautious mood in February. Whereas, at the beginning of the year investors had been happy to discount the risk of a deeper global recession, more recently economic data has rekindled fears that central banks will have to raise interest rates even further to combat persistently high inflation.

22nd March 2023

Performance of our standard portfolios

Performance since the last insight (from Friday 3 February 2023 to Friday 17 March 2023)

Proving how difficult it can be to forecast how assets will perform, defensive assets which saw falls in 2022 have shored up the lower risk portfolios well over the period.

Performance over the last year (up to Friday 17 March 2023)

2022 was a difficult year for investors with falls in defensive assets as interest rates rose and pressure on equities from the economic pressures and outlook for companies. We do not try to predict where investments will go from here, but we believe the risk you are taking on as an investor should provide a good, above inflation return over time.

Longer term performance of standard portfolios (up to Friday 17 March 2023)

Investing is a longer-term pursuit and taking a look at the ten year graph to March, the portfolios are showing a more robust picture depending on the risk you have taken.

Performance of our sustainable portfolios

Sustainable portfolios performance since the last insight (from Friday 3 February 2023 to Friday 17 March 2023)

Sustainable portfolios performance has been similar to standard portfolios.

Sustainable portfolio performance over the last year (up to Friday 17 March 2023)

Over the year, as sustainable portfolios have no exposure to the oil and gas sector, which has been one to the top performers in 2022, they have lagged standard portfolios.

Longer term performance of Sustainable portfolios (up to Friday 17 March 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.

Portfolio Investments

Below shows the performance of a number of asset classes for the year to date and the annualized return over five years as at close of play on Tuesday 28 February.

The left-hand column shows the movement of assets since the beginning of the year and while there have been lots of falling values, there have been some bright spots, notably value companies and UK equities providing diversification for portfolios. Over five years there have been strong returns for growth assets across the board but with sharp falls this year, the longer term picture for defensive assets is flat. This does mask the necessary job defensive assets usually play in protecting assets when stock markets are falling and the rising yields over the last year which will improve the return in the future.