In March 2022, the average prudential balanced portfolio returned -1.0% (February 2021: 1.2%). The top performer is Momentum Namibia Growth Fund with 0.6%, while Hangala Prescient Absolute Balanced Fund with -2.2% takes the bottom spot. For the 3-months Momentum Namibia Growth Fund takes the top spot, outperforming the ‘average’ by roughly 1.3%. Stanlib Managed Fund underperformed the ‘average’ by 1.5% 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 31 March 2022 provides a full review of portfolio performances and other insightful analyses. 

How do you invest when a global recession is looming?

Corona lock-downs across the world highlighted the flipside of globalisation. The fact that lock-downs disrupted global supply chains made many companies rethink their manufacturing in foreign countries. We still experience electronic components delivery delays in the motor vehicle industry and other tech industries worldwide. The apparent strategic response to these disruptions is to indigenise manufacturing. However, indigenising manufacturing is not that easy, will take time, and negate many globalisation efficiencies. As a result, the cost of goods will increase.

The world now faces the next challenge where the Ukraine conflict badly disrupts the production of staple foods. Food-producing countries are imposing export halts. Again, as a result, food prices are increasing. I coincidentally came across graph 6.1 in CAM Daily Brief of 11 April, showing an extremely steep increase in global food prices since 2020 when COVID struck, and the impact of the Ukraine conflict has not manifested yet!...

 The Monthly Review of Portfolio Performance to 31 March 2022 also reflects the editor’s views on current developments and their impact on investment markets.