In January our average prudential balanced portfolio returned 2.93% (December minus 0.14%). Top performer is Investment Solutions Multi Manager (3.74%), while Allan Gray (1.31%) takes bottom spot.

At this point we do not see much excitement coming from our local financial markets over the next year or two, although an expected continuation of foreign portfolio flows, as the result of the fiscal easing in the Eurozone, is likely to ensure that this asset class should outperform other asset classes. Diversifying offshore, more specifically to the US would appear worth a consideration for the investor with a time horizon of 3 years and longer. European markets also offer great opportunities if you are brave and if you can be patient. In the short term, local equity markets may well still outperform offshore markets over the next 3 years.