Out of 2017 FY

It has been a difficult investment year, but 2016/17 finished on a high note. We started the 2016/17 with increases in investment values, then around October 2016 the value of our investments slowly decreased, even at a greater rate compared with markets in general. At the end of May 2017, August Investments shares had fallen in value to $288.54. Then in mid June there was a sudden turn around, with our shares valuation increasing over the month, significantly outperforming our benchmarks at the same time.

This outperformance continued into July and August to date with shares now valued at $303.60. The sudden increases in individual investments in our portfolio were across the board. Standout investments during July were:  Australian Ethical Investments up 21%, Buddy Platform up 116%, Carnegie Clean Energy up 27%, Dicker Data up 13% and Galaxy Resources up just 11%.

Australian Ethical Investments (ASX: AEF) in early July received its first third party institutional investment – $128M from Australian Catholic Superannuation. This is an extra 6% of funds of funds under management, which is on top of the growth in FUM during 2016/17 from business as usual. As well as boosting the revenue of Australian Ethical, these funds will  need to be invested this amount somewhere, which could boost the price of some of our mutual small and mid-cap investments even further. We go into the 2018 financial year with some confidence.