In May 2024, the average prudential balanced portfolio returned 1.2% (April 2024: 1.0%). The top performer is Allan Gray Balanced Fund, with 1.7%, while Lebela Balanced Fund, with 0.7%, takes the bottom spot. NinetyOne Managed Fund took the top spot for the three months, outperforming the ‘average’ by roughly 0.8%. Lebela Balanced Fund underperformed the ‘average’ by 1.0% on the other end of the scale.
The Monthly Review of Portfolio Performance to 31 May 2024 reviews portfolio performances and provides insightful analyses.
Should you still try to make hay while the sun shines?
Would you invest in Europe or the US if you knew that Russia would launch missiles armed with nuclear warheads tomorrow? It is perhaps a hypothetical question now but closer to reality than most people might think.
When we think of investing, we think of Europe, the US and Japan. Every other destination would only be considered hesitantly. Pension fund asset managers’ asset allocation reflects the same thinking. Besides their compulsory domestic exposure, most of their funds are invested in Europe, the US and Japan. The investment in other markets is usually well below 10%. I have never seen any Chinese, Indian or Turkish share in their top ten. It is a bit of herd mentality aimed at protecting their interests. They do not want to be the tallest poppy getting its head chopped off.
The West is facing a severe threat to its economic system that dominates the global economy. As a result, many prominent commentators agree that World War III is already raging in Ukraine and now the Middle East. Europe is not ready to enter the war yet. Europe is propping up Ukraine while it gears up to join the war with all its resources. In the meantime, it will push ever more resources into Ukraine, hoping it will last long enough until Europe is ready. Will Russia afford Europe the time to prepare? It is inconceivable as it would drastically weaken Russia’s chances of surviving. As things stand, Russia’s best bet is to overrun Ukraine before Europe is ready to engage it. However, Russia is facing a dilemma.
Read on in paragraph 6 of the Monthly Review of Portfolio Performance to 31 May 2024. It also reviews portfolio performances and provides insightful analyses