In October our average prudential balanced portfolio returned 2.79% (September 1.13%). Top performer is Namibia Asset Management/Coronation (3.49%), Investec (2.38%) takes bottom spot.

On the basis of fundamentals and the prevailing economic environment, foreign equities should outperform foreign bonds and property and in addition, a number of foreign bourses offer high discounts on fair value for political reasons that should fade away. In the face of a depreciating Rand, such investments would of course experience that benefit as well. Locally we would expect equity to remain the top performing asset class, followed by property, bonds and cash over the next one to two years. Bonds and cash face the real prospect of negative returns should interest rates be raised over the next 1 to 2 years.