In October the average prudential balanced portfolio returned 4.1% (September: 1.35%). Top performer is Investec (4.89%); while Investment Solutions (3.42%) takes the bottom spot. For the 3 month period, Investec takes top spot, outperforming the ‘average’ by roughly 1.83%. On the other end of the scale Momentum underperformed the ‘average’ by 1.39%.

Should you take your money and run?

The outlook for pension funds in Namibia is not great, unfortunately. The industry is facing a revolution that it may not survive! Firstly, a new body of law to be called Financial Institutions and Markets Act, the ‘FIM Act’, will present a revolution of the financial services industry. Secondly the regulator is now in the process of substantially increasing its requirements for pension funds and their financial service providers in terms of reporting. Thirdly, we are facing the introduction of a National Pension Fund that is poised to seriously undermine the financial services industry in general and the pension funds industry in particular. To round it all off, we have a government in dire financial straits that is looking for every possible avenue to capture financial resources to fund its operations. Unfortunately for the consumers of financial services but fortunately for government, their savings in regulated financial services institutions in general, and in pension funds more specifically are an easy prey for government and it is thus unashamedly pouncing on this opportunity.

Revolutions as we all know will turn the inside out, the upside down. This is a revolution imposed by first world experts on a small developing country that cannot really afford this. Reminds me a bit of Mukorob, erstwhile Namibian landmark with its ‘disconnect’ between body and head.

Read part 6 of the Monthly Review of Portfolio Performance to 31 October 2017 to find out what our investment views are.