In April 2023, the average prudential balanced portfolio returned 2.3% (March 2023: 0.3%). The top performer is Allan Gray Balanced Fund with 3.1%, while Hangala Capital Absolute Balanced Fund with 1.9% takes the bottom spot. For the three months Allan Gray Balanced Fund takes the top spot, outperforming the 'average' by roughly 2.1%. M&G Managed Fund underperformed the 'average' by 1.6% 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 April 2023 provides a full review of portfolio performances and other insightful analyses. 

Tread carefully until the dust settles

In the last few columns, I expressed my concerns about the consequences of the Ukraine conflict, which is just one symptom of bigger global developments. China, Russia, South Africa, Brazil, and a few other countries are trying to break the shackles of the US hegemony. Will the US just be watching these efforts, or will it use all its means, including those of the collective West, to prevent the shackles from being broken? I cannot see the US just watching its global hegemony being dismantled. But how far are its adversaries prepared to go? Russia has shown that it is not prepared to return on its resolve to break the US shackles. South Africa just experienced a serious decline in the Rand exchange rate from 18.39 to 19.31 during the second week of May after rumours that it entered into an arms deal with Russia. Is this a sign of what countries siding with the US adversaries can expect to happen, and will they have the means to withstand the US and the collective West’s pressures?

Given these severe global uncertainties, an investor should tread carefully until the dust settles and consider the possibility of a market crash in his investment decisions…

The Monthly Review of Portfolio Performance to 30 April 2023 also reflects the editor’s views on current developments and their impact on investment markets.