Ethical Balanced Portfolio

Oracle Ethical Balanced Portfolio

Oracle’s Ethical Balanced Portfolio gives investors exposure to a broad range of investment sectors and and provides a balance between capital growth and capital preservation.

Environmental, Social & Governance Investing

Oracle’s Ethical Balanced Portfolio provides investors:

  • A diversified portfolio that has been screened for ethical criteria,
  • Is spread across all major asset classes,
  • Capital growth over the medium to long term
  • A moderate level of income

Investors will need to accept a moderate degree of volatility as is associated with a relatively high exposure to growth assets and are prepared to invest for the minimum investment timeframe.


Conservation of the natural world

Climate Change
Carbon Emissions
Waste & Pollution
Resource Management


Consideration of people & relationships

Corporate Culture
Occupational Health & Safety
Employee Turnover & Pay
Community Relations & Participation
Labour Conditions
Human Rights


Standards for running a company

Executive Compensation
Management & Board Structure
Board Diversity
Shareholder Rights
Accounting Practices

Portfolio top 10 holdings

Adobe Incorporated

Vertex Pharmaceuticals

Alphabet Inc.

Costco Wholesale Corporation

Gryphon Capital Income Trust

REA Group

Airbnb Inc.


Centuria Capital No. 2 Fund

Metrics Master Income Trust

Negative Screening

Our negative screening tool identifies companies and industries that many would consider unethical. We exclude these companies from our investment universe.

Oracle Investment Management leverages third party data platforms to research a company’s exposure to 15 industries we have identified as not achieving our desired ethical standards.

We then apply a hard 10% revenue filter to our portfolios and potential universe. Any company that derives more than 10% of their revenue from one of the filtered industries is not able to be included in an ethical portfolio.

Oracle have identified the following Industries as not suitable for an ethical investment portfolio:

Adult Entertainment




Fur & Specialty Leather


Genetically Modified Food & Plants

Military Contracting

Oil and Gas

Palm Oil

Animal Testing

Predatory Lending

Thermal Coal


Uranium Mining

Positive Screening

Our positive screening tool helps to identify certain companies and industries as ethical and sustainable and seeks to promote them within our investment universe.

Oracle Investment Management leverages third party data platforms to research a company’s exposure to 12 industries we have identified as ethical and sustainable.

We then apply a 25% revenue filter to our portfolios and potential universe. Any company that derives more than 25% of their revenue from one of the filtered industries receives a higher ethical score when researched by the analyst.

Companies that screen positively must still meet our strict investment criteria for entry into an ethical portfolio.

Oracle have identified the following Industries as ethical:

Affordable Housing


Energy Efficiency

Financial Inclusion

Green Buildings

Green Transportation


Pollution Prevention and Reduction

Renewable Energy

Resource Efficiency

Sustainable Agriculture and Food


Green Bonds

Green bonds are debts issued by Governments, Banks or Corporations to fund ethical or environmentally positive projects. In Australia, most green bonds have been issued by the major banks, who back the bond with a pool of loans that meet ethical criteria.

How does it work in practice?

Green bonds are promoted within the Oracle Investment Management fixed income universe but must still meet our risk weighted return criteria. Also, we leverage third party data to look past the specific bond and analyse the ethical quality of the issuer. If the issuer does not meet our <10% negative screen threshold, we will not own any bonds regardless of whether they are rated green.

Oracle Ethical Balanced
Portfolio Asset Allocation

Asset Class Range Indicative Allocation
Australian Equities 20-40% 30%
International Equities 25-45% 34%
Property 0-15% 10%
Fixed Interest 15-35% 24%
Cash 2-10% 2%

Investment Process

We believe the market is poor at valuing long term growth as it compounds over time. This can create large mispricing’s in truly great businesses who can sustain growth for many years.

Valuation models are created as part of deep research to estimate intrinsic value and appropriate earnings multiple.

Investment Objective

To provide investors with a mix of long-term capital growth and income. The portfolio aims to outperform its benchmark over 7 years or longer.

Portfolio Manager

Luke Durbin

Luke Durbin

Investment Universe

Listed ASX Securities, cash, ETF’s, corporate bonds, short term money market securities, international securities, listed sub-debt, listed hybrids and listed property investments.


Morningstar AUS Balance Tgt Alloc NR AUD

Investment Strategy

To invest across a broad range of investment sectors and to provide a balance between capital growth and capital preservation. Oracle use an active bottom up stock selection process, focusing on buying quality securities at reasonable prices. The securities are assessed as meeting both our investment criteria of strong earnings growth and ethical criteria of positive social, environmental and governance factors.

Investment Philosophy

At Oracle we fundamentally believe that sustainable earnings growth drives share prices over the medium to long term. Finding these opportunities at a reasonable valuation is the key to superior returns over time.

Portfolio Performance

As at 31 May 2024

1mth 3mth 6mth 1 yr 2 yr p.a 3yr p.a. Inception*
Ethical 0.29% 10.12% 9.52% 11.83% 8.36% 2.43% 4.32%
Benchmark (Morningstar AUS Balance Tgt Alloc NR AUD) 1.10% 8.09% 6.92% 9.03% 5.51% 2.77% 5.06%
Outperformance -0.81% 2.03% 2.60% 2.80% 2.85% -0.34% -0.74%

* Inception date is 01 November 2020

Portfolio performance is after investment manager fees and before administration and platform fees. Performance figures are calculated by HUB24 and aggregated monthly. These figures represent historical performance only. Past performance should not be taken as an indication of future performance. Individual Portfolio performance may vary depending on date of initial investment, contributions, withdrawals and individual investor’s nominated investment constraints (including tax).

Investment Fees

Management Fee

0.75% incl. GST

Performance Fee


How to invest in the Ethical Balanced Portfolio

1. Read the Product Disclosure Statement

2. Contact Oracle Advisory Group today or speak to an advisor to complete the process.

Not ready to invest yet?

View our latest quarterly report to get a great insight into our approach and our portfolios, or give one of our advisors a call to for more information on the best fit for you.

Call 02 4088 6444

Have you considered one of our other portfolios?

Oracle Emerging Companies Portfolio

Exposure to Australia’s emerging leaders outside the ASX100.

Oracle Global Equities Portfolio

Investment Exposure to the biggest and best businesses in the world.

Oracle Fixed Interest Fund

A reliable income stream through investment in fixed income securities.

Property Securities Portfolio

Invest in listed Australian property across a broad range of sectors.

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