In February 2023, the average prudential balanced portfolio returned 0.2% (January 2023: 5.5%). The top performer is Allan Gray Balanced Fund with 1.0%, while NinetyOne Managed Fund with -0.7% takes the bottom spot. For the three months, Namibia Coronation Balanced Plus Fund takes the top spot, outperforming the 'average' by roughly 2.6%. Hangala Capital Absolute Balanced 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 28 February 2023 provides a full review of portfolio performances and other insightful analyses.
When conventional investment management becomes redundant
In the phase to the final resolution of the East: West conflict, one way or another, inflation and interest rates are likely to be much higher. Governments may have to raise taxes to fund the conflict and higher interest rates on their debt. Higher interest rates, inflation, and taxes will curb consumer demand and will result in a recession over the next decade until the dust settles. There will be a decoupling of global equity markets, and local equity markets will be driven by local and regional rather than global developments. Because of the global political turmoil, foreign investors will withdraw from the local markets for ‘safe havens’. Investors’ definition of ‘safe havens’ will change as investors are likely to onshore or friend-shore their investments even further than they started to do in the aftermath of COVID and global supply change disruptions. Foreigners’ support of local equities and other assets will dwindle, impacting our local currency and equity markets negatively. Should the worst-case scenario realise, equity markets will take a deep dive and will not recover before the situation has been resolved, one way or another. Economies will not disappear unless their people disappear. As long as there are people, they have needs that the economy must meet, and life will continue. Today’s winners may not be tomorrow’s, but basic life necessities will always exist. Markets will undergo significant changes, and with it will come a lot of volatility…