In May 2022, the average prudential balanced portfolio returned 0.4% (April 2022: -0.7%). The top performer is M&G Managed Fund with 1.0%, while Hangala Prescient Absolute Balanced Fund with -0.5% takes the bottom spot. For the 3-months Allan Gray Balanced Fund takes the top spot, outperforming the ‘average’ by roughly 1.5%. NAM Coronation Balanced Plus Fund underperformed the ‘average’ by 2.1% 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 May 2022  provides a full review of portfolio performances and other insightful analyses. 

You better stay at home and lock your doors when it is getting rowdy on the streets!

A few years ago, I suggested in this column that asset managers must consider the global political environment in their investment decision. I addressed my concern with some of these managers. They responded that it is more important to focus on investment fundamentals as one cannot predict political developments. Once the political upheavals fade, investment fundamentals will prevail once again.

I am not sure one can ignore the political environment but accept that the time horizon impacts one's approach. For investors, the time horizon is 40 years at most. If political upheaval does not settle within that time horizon, the investor may have a serious problem. In such a scenario, the investment principles become irrelevant to the investor.

Today's political system has been established over the past 75 years. Most alive today only know this system and may think it can never change. However, life changes continuously, sometimes slower, sometimes faster. Over the past 75 years, the political system has changed, but generally gradually and in a very controlled fashion, except if one dared to challenge the US hegemony…

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