In June 2022, the average prudential balanced portfolio returned -3.7% (May 2022: 0.4%%). The top performer is Allan Gray Balanced Fund with -1.9%, while Momentum Namibia Growth Fund with -5.2% takes the bottom spot. For the 3-months Allan Gray Balanced Fund takes the top spot, outperforming the 'average' by roughly 4.0%. NAM Coronation Balanced Plus Fund underperformed the 'average' by 3.3% 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 June 2022  provides a full review of portfolio performances and other insightful analyses. 

Global investment markets are not rosy!

The prospects for global equity markets, including our local markets, are not rosy. Coupled with the global political turmoil, local investors must expect foreign investors to withdraw from the local markets for safe havens. Their support of local equities and other assets should wane, which will impact our local currency negatively, as one has already seen. At the same time, the increasing global interest rates negatively impact fixed interest assets.

Although the general backdrop to investments is negative, investment markets always offer opportunities arising from the political turmoil and shortages resulting from the Ukraine crisis and the sanctions the West instituted against Russia. Interestingly, 'politically correct' investments are likely to fall out of favour creating opportunities with alternatives. Europe, for example, will reduce the focus on climate-neutral energy as it is forced to return to fossil fuels and nuclear power, and scorned military technology industries will regain popularity.

The Monthly Review of Portfolio Performance to 30 June 2022  provides a full review of portfolio performances and other insightful analyses.