In April 2021 the average prudential balanced portfolio returned 1.5% (March 2021: 0.6%). Top performer is Hangala Prescient Absolute Balanced Fund with 2.4%, while Allan Gray Balanced Fund with 0.7% takes the bottom spot. For the 3-month period, Hangala Prescient Absolute Balanced Fund takes the top spot, outperforming the ‘average’ by roughly 1.8%. On the other end of the scale Investment Solutions Balanced Growth Fund underperformed the ‘average’ by 1.4%. Note that these returns are before (gross of) asset management fees.

The Monthly Review of Portfolio Performance to 30 April 2021 provides a full review of portfolio performances and other interesting analyses.

Understanding Benchmark Retirement Fund Investments

In the next few issues of our monthly Performance Review, I will be providing background and guidance on investments to assist Benchmark Retirement Fund members to take charge of their fund investments.

• Parties to fund and their roles and responsibilities
• Investment choice and return objectives
• Investment range and portfolio composition
• Performance characteristics of asset classes and portfolios
• The default portfolio
• The default portfolio vs the smooth growth portfolio
• Income replacement ratio and contribution rates
• Selection of investment managers
• Combining investment portfolios and when to switch
• Investment manager risks and manager diversification
• Performance measurement

In this issue I will cover the following topics:

• Parties to fund and their roles and responsibilities
• Investment choice and return objectives
• Investment range and portfolio composition

Read part 6 of the Monthly Review of Portfolio Performance to 30 April 2021 to find out what our investment views are.