Model Portfolio Performance – October 2017

Ethical Investment Mid-Cap Model Portfolio update

The Ethical Investment Mid-Cap Model Portfolio performed quite well during October with a return of 5.12% for the month, outperforming the All Ordinaries Index which rose 4.06% for the month.

The main contributor to performance for the month was the strong return from Blackmores, which rose 35.36%. The renewable energy company Genex Power also performed very well, rising 27.91%, as did a recent addition to the portfolio, Select Harvests, which gained 21.76%.

The Model Portfolio continues to outperform the overall market since its inception, with a return of 8.89% per annum.

The Ethical Investment Mid-Cap Portfolio returned 5.66% over the past year. This return was below the index which returned 15.45%.

The main reason for the under-performance is what we like to call the ‘Trump Effect’. Once Donald Trump was elected as President of the US, share markets rallied. However, the majority of the gains were found in sectors such as resources, construction and mining, of which we have little or no exposure to in this portfolio due to the investment mandate of the fund.

The Ethical Investment Mid-Cap Portfolio has overweight allocations to sectors of the market which have a positive effect on society or the environment, such as healthcare, education, technology and renewable energy, and no exposure to sectors which harm society or the environment, such as gambling, fossil fuels and mining.

Looking long-term, we will see more and more opportunities for investors in the healthcare, education, technology and renewable energy sectors, as this ties in with the macro themes of ageing populations, rising living standards, a 2 degree world, and transitions away from fossil fuels to renewable energy.

Please click here to view the full Model Portfolio Update.


The contents of this newsletter are intended as general advice only.  No specific person’s circumstances, financial situation or objectives have been taken into consideration.  You should not act on the information provided without seeking personal advice from an appropriately qualified financial planner.   Past performance is no indication of future performance. While the data source has been verified as reliable, the actual content has not been checked for accuracy.  Consequently Ethical Investment Advisers does not warrant the accuracy of the information nor accept liability for any errors in the data.
You may also be interested in

Sign up to our Newsletter