In March 2024, the average prudential balanced portfolio returned 1.3% (February 2024: 0.7%). The top performer is Allan Gray Balanced Fund, with 2.0%, while Lebela Balanced Fund, with 0.5%, takes the bottom spot. Namibia Coronation Capital Plus Fund takes the top spot for the three months, outperforming the ‘average’ by roughly 1.7%. Lebela Balanced 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 31 March 2024 reviews portfolio performances and provides insightful analyses.

Namibia must avoid contracting the ‘Dutch Disease’

I was recently invited to M&G Investments Leonard Krüger’s insightful presentation on ‘Resource Discovery: best practice and avoiding the resource curse’. Yes, I am sure many readers also noticed how many media commentators are already counting their blessings and awaiting the new dawn in great anticipation of securing personal riches. Leonard’s talk aimed to put our newfound riches into perspective to moderate exaggerated expectations and warn that things can go horribly wrong, as they have in many other countries, if Namibia does not promptly establish sustainable resource exploitation policies.

Leonard pointed out that while Namibia is one of the world’s ‘hottest exploration plays’, there were many other significant discoveries worldwide in 2022 and 2023, notably Guyana, Iran, and Namibia only in third place. Namibia’s resource represents less than 1% of the global fossil fuel resource. Namibia is competing against many other countries and faces the challenge that its resource is in ultra-deep waters on the edge of what can be exploited economically with current technology, making it very expensive for investor.

Read a summary of Leonard’s interesting talk and our view on global investment markets in the Monthly Review of Portfolio Performance in the Monthly Review of Portfolio Performance to 31 March 2024.