Stock markets had been in a rising trend since March 2009 but over the last 6 months we have been reminded of the importance of investing in accordance with your own risk tolerance, and the risk needed to live the lifestyle you want.


The defensive quality of our lower risk portfolios is highlighted in the chart. Due to their larger exposure to bonds they have benefited from the rising prices of lower risk assets, and for those of you who didn’t want the roller coaster ride of stock markets in their investments, we feel this has been a good result, especially as these portfolios are still able to offer good longer term returns.


Higher risk portfolios have seen a fall in their value over the month but as you can see not as


Maximising tax efficiency


The Old Mill Portfolios are available to invest directly as well as into a range of different tax wrappers. Taxes are just another cost, and it is therefore essential to ensure you are investing in the most tax efficient way.


Using your ISA allowance, making Pension contributions and for larger amounts using Investment Bonds can reduce the tax you pay.


Trustees can use Investment Bonds very effectively to reduce both the immediate tax they pay, and also to reduce tax in the future, potentially to zero.


much as the main UK market, as represented by the FTSE100. Portfolios have benefited from their diversification in Commercial Property and some bond exposure.


We expect given time, and once recovery comes, that higher risk portfolios will have the ability to show much greater long term returns. But at times like these there is the reminder that with the potential of higher returns come higher risks.


Overall we hope you have seen the results you were expecting with the portfolios. We never like to see falls in investment but rest assured we monitor the individual funds in depth regularly and have an investment committee that meets once a month to ensure they remain suitable.


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