In December 2022, the average prudential balanced portfolio returned -0.9% (November 2022: 3.0%). The top performer is Allan Gray Balanced Fund with 0.8%, while Stanlib Managed Fund takes the bottom spot with -2.1%. For the 3-months Allan Gray Balanced Fund takes the top spot, outperforming the 'average' by roughly 2.1%. Hangala Prescient Absolute Balanced Fund underperformed the 'average' by 4.0% 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 31 December 2022 provides a full review of portfolio performances and other insightful analyses. 

The defining development for economies and markets in the next decade

Russia and China have global ambitions, despise being subservient to the US, and resist it wherever possible. Russia, for one, had the audacity to frustrate US attempts to topple President Assad of Syria. China has been taking a more indirect approach to challenging US domination, such as its belt and road project.  Many other countries, who simply cherish their autonomy, do not have the means to resist but will take the opportunity of ridding themselves of the US straight jacket.

It seems to me that the US picked Russia as the weaker link in the chain of resistance. At the same time, the fall of Russia to the west would give the west access to China’s backdoor. Under former President Jeltzin, the US had nearly achieved its goal, but then came President Putin, whose purpose was and still is to restore the former Soviet Union’s position in the world. Subjugating Russia is not a recent US strategy if one considers the colour revolutions all around Russia’s periphery. John Bolton, former US ambassador to the UN, proudly acknowledged that the US carried out several regime’ changes that he was personally involved in. He did not say where, but the fact is that the US uses such tools to cement its hegemony. Henry Kissinger and Angela Merkel are reported to both have acknowledged that the Ukraine conflict is by the design of the west.

I believe the US will not relent on its goal to subjugate Russia as a first step, and China to follow, even if Russia is prepared to offer a compromise. Should Russia get the better of Ukraine, Poland will likely be ‘sent to the front’, possibly with other former eastern bloc and Nordic countries. If that does not ‘do the job’, we will likely see a further expansion, another world war. In fact, some political commentators, like US economist, Nouriel Roubini, believe the third world war has already started...

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