In March 2021 the average prudential balanced portfolio returned 0.6% (February 2021: 2.6%). Top performer is Old Mutual Pinnacle Profile Growth Fund with 1.9%, while Investment Solutions Bal Growth Fund with -0.1% takes the bottom spot. For the 3-month period, NAM Coronation Balanced Plus Fund takes the top spot, outperforming the ‘average’ by roughly 2.6%. On the other end of the scale Stanlib Managed Fund underperformed the ‘average’ by 1.9%. Note that these returns are before (gross of) asset management fees.

The Monthly Review of Portfolio Performance to 31 March 2021 provides a full review of portfolio performances and other interesting analyses.

Why the prudential balanced portfolio is the answer for pension funds

A typical statement made by fund members, in particular when markets are not doing so well, is that the Benchmark Default portfolio has been performing poorly over the past so many years and one should have rather been invested in the money market.

Well, when someone makes such a statement, one needs to establish what the commentator’s benchmark is for saying that the portfolio has been doing poorly. One also needs to understand what this portfolio aims to achieve before one can put such a statement into context. This statement is similar to saying ‘my Ferrari’s fuel consumption is horrific’. Really an empty statement when made out of context. The fuel consumption of a Ferrari will certainly be significantly higher than that of a 1.4 litre Golf TSI. Would you not have expected this, when comparing the technical specs of these two cars, particularly in terms of engine output? It’s simply an unreasonable comparison and a matter of ‘horses for courses’!

Read part 6 of the Monthly Review of Portfolio Performance to 31 January 2021 to find out what our investment views are.