In April the average prudential balanced portfolio returned 1.36% (March: 0.86%). In a turn of tables, Sanlam, for once in a long time takes top spot (2.02%), while Namibia Asset Managers (0.73%) has taken up the bottom spot. For the 3 month period Metropolitan is top performer outperforming the 'average' by roughly 1.5%. On the other end of the scale Allan Gray underperformed the 'average' by 0.8%.

Our performance ranking for the 3 months ended 30 April displays a significant change of fortunes of the various managers from just 3 months ago. Under performing managers Metropolitan, Sanlam and Investment Solutions now take top spots while out performing managers Allan Gray and Namibia Asset Management take bottom spots. This begs the question - what has changed in the market?

As we commented in the previous newsletter, the uncertainty in global investment markets as a consequence of the policy of the US Federal Reserve, has subsided and it is now 'back to business' for the global investor community. The result of the turnaround in investor sentiment has evidently also resulted in the turnaround of fortunes of the various portfolio managers as depicted in the 3 month performance ranking graph.

The question now is whether the past 3 months are an indicator of what to expect over the next 12 to 36 months? Will we see the Rand strengthening further and interest rates declining as the result of foreign investment flows, inflation declining and equities continuing to steam ahead?