In July the average prudential balanced portfolio returned 1.53% (June: -0.95%). Top performer is Stanlib (2.69%); while EMH Prescient(-1.18%) takes the bottom spot. For the 3 month period Stanlib takes top spot, outperforming the ‘average’ by roughly 1.5%. On the other end of the scale EMH Prescient underperformed the ‘average’ by 2.6%.

The tides have changed

Undoubtedly the two subjects that currently feature most prominently in financial circles, is the rapid depreciation of the Rand and the dramatic decline in the price of oil. For the investor, these are important indicators and the question begs to be answered whether we will see a reversal of these developments or whether these represent new norms.

The graph below depicts the depreciation of the Rand against the Euro, the British Pound and the US Dollar since October 2000. Over this period to end of July the Rand depreciated by 67% against the US Dollar, by 80% against the British Pound and by 117% against the Euro.

Read part 6 of the Benchtest 07.2015 newsletter to find out what our investment views are in the light of these dramatic developments.