In November 2021, the average prudential balanced portfolio returned 1.8% (October 2021: 2.2%). The top performer is Momentum Namibia Growth Fund with 2.8%, while Stanlib Managed Fund with 0.8% takes the bottom spot. For the 3-months NAM Coronation Balanced Plus Fund takes the top spot, outperforming the ‘average’ by roughly 1.1%. Stanlib Managed Fund underperformed the ‘average’ by 2.0% on the other end of the scale. Note that these returns are before (gross of) asset management fees.

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

Do not expect the Default Portfolio to outperform!

The Benchmark Default Portfolio does not aim to outperform the average of the prudential balanced portfolios over the long term. Any long-term outperformance is a coincidence. Yet, since its restructuring at the start of 2010, it beat the average prudential balanced portfolio cumulatively. It was 2.7% ahead of the average at the end of October 2021 after reaching its peak outperformance of 12.4% in March 2020. In March 2020, when COVID hit our markets, the JSE Allshare Index fell 12.8%, from 51,038 to 44,490. In April 2020, the JSE Allshare Index grew by 13.1%, continuing its trajectory to 70,475 at the end of November 2021.

The Benchmark Default Portfolio can underperform and outperform the average prudential balanced portfolio in the short term. It’s currently more conservative structure means that it will likely beat the average prudential balanced portfolio when shares perform poorly, and it will lag it when shares perform strongly. Since the end of March 2021, shares performed strongly, and as a result, the Default Portfolio’s cumulative outperformance to the end of March 2021 declined steadily.

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