In June 2021 the average prudential balanced portfolio returned 0.4% (May 2021: 0.3%). Top performer is Prudential Managed Fund with 1.0%, while Hangala Prescient Absolute Balanced Fund with -0.4% takes the bottom spot. For the 3-month period, NAM Coronation Balanced Plus Fund takes the top spot, outperforming the ‘average’ by roughly 1.2%. On the other end of the scale NinetyOne Managed 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 June 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 provide background and guidance on investments to assist Benchmark Retirement Fund members taking 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 parts 1 and 2 of the previous two newsletters, I covered the first four topics. In the Monthly Review of Portfolio Performance, paragraph 6, I will cover the next two topics; the default portfolio and the default portfolio vs. the smooth growth portfolio.
Read part 6 of the Monthly Review of Portfolio Performance to 30 June 2021 to find out what our investment views are.