Performance of the Old Mill Portfolios
September will see our annual rebalance of assets. At this time this will mean selling some of the assets that have grown over the year – undervalued companies and global equities and moving this money into those assets that have fallen. With sharp rises in fixed interest yields, some of that rebalance money will go to top up these defensive assets and buy into funds with much higher yields.
The rebalance in Pensions and ISAs will happen automatically as there are no tax issues to be considered. For portfolios held in General Investment Accounts (GIA’s) and Trusts where tax may be a consideration, your financial planner will speak to you about these when you next meet to agree the best course of action.
6th September 2022
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Gavin Jones See profile
Performance since the last insight (from Friday 5 August 2022 – Friday 2 September 2022)
Portfolios all fell over the period as we saw further pressure on equities and bonds.
Performance over the last year (up to Friday 2 September 2022)
In the face of global economic and political turmoil there has been pressure on portfolios over the last year.
Longer term performance of standard portfolios (10 years up to Friday 2 September 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 2 September shown above.
Sustainable portfolios performance since the last insight (from Friday 5 August 2022 – Friday 2 September 2022)
Sustainable portfolios saw falls over the period broadly in line with the standard portfolios.
Performance over the last year (up to Friday 2 September 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 but August has brought further falls.
Longer term performance of Sustainable portfolios (5 years up to Friday 2 September 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.
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 Wednesday 31 August.
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.