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.
Environmental
Conservation of the natural world
Climate Change
Carbon Emissions
Waste & Pollution
Sustainability
Resource Management
Biodiversity
Social
Consideration of people & relationships
Corporate Culture
Occupational Health & Safety
Employee Turnover & Pay
Community Relations & Participation
Labour Conditions
Human Rights
Governance
Standards for running a company
Executive Compensation
Management & Board Structure
Board Diversity
Taxation
Shareholder Rights
Accounting Practices
Portfolio top 10 holdings
Adobe Incorporated
Rockwool
Universal Music Group
Alphabet Inc.
Microsoft Corp.
REA Group
Pro Medicus
Visa Inc.
Wesfarmers
Steadfast Group
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 Alcohol Cannabis Firearms Fur & Specialty Leather |
Gambling Genetically Modified Food & Plants Military Contracting Oil and Gas Palm Oil |
Animal Testing Predatory Lending Thermal Coal Tobacco 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 Education Energy Efficiency Financial Inclusion |
Green Buildings Green Transportation Health Pollution Prevention and Reduction |
Renewable Energy Resource Efficiency Sustainable Agriculture and Food Water |
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.
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
Valuation models are created as part of deep research to estimate intrinsic value and appropriate earnings multiple.
Investment Objective
To provide investors with long-term growth and to outperform the Consumer Price Index + 3% over the medium term (5 years).
Portfolio Manager
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.
Benchmark
Consumer Price Index + 3%
Investment Strategy
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
| 1mth | 3mth | 6mth | 1 yr | 2 yr p.a | Inception* | |
| Ethical | -2.71% | -5.63% | -1.83% | -0.71% | -5.56% | 1.01% |
| Benchmark (Morningstar Aus MSEC Balanced) | -2.00% | -4.42% | -2.98% | 2.54% | -2.46% | 2.35% |
| Outperformance | -0.71% | -1.21% | 1.15% | -3.25% | -3.10% | -1.34% |
- As at 31st October 2023
- Inception date is 01 November 2020
Investment Fees
Management Fee
0.75% incl. GST
Performance Fee
15% including GST of any amount by which the Portfolio’s investment return is greater than the Benchmark, which is Consumer Price Index + 3%.
How to invest in the Ethical Balanced Portfolio
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
Oracle Global Equities Portfolio
Oracle Fixed Interest Fund
A reliable income stream through investment in fixed income securities.