In May the average prudential balanced portfolio returned 6.25% (April minus 0.59%). Top performer is Namibia Asset Management (8.33%), Investment Solutions (4.56%) takes bottom spot.

We have been concerned about the exaggerated growth of local equity markets as the result of fiscal and monetary intervention by governments and reserve banks across the globe for some time. This intervention has resulted in large flows of capital into emerging markets such as South Africa, in search for higher yields outside the low interest rate environments of the developed world.

For us in Namibia, equity and equity investors benefited from a strong Rand and borrowers from low interest rates. Those that invested offshore or in fixed interest instruments suffered.

It becomes ever more evident that the tide is busy turning. Interest rates  will increase further over time and the trend of the Rand will remain negative.