Allan Gray

Allan Gray Balanced Fund

Fund description

The Fund invests in a mix of shares, bonds, property, commodities and
cash. The Fund may buy foreign assets up to a maximum of 25% of the
Fund. The Fund typically invests the bulk of its foreign allowance in a mix
of funds managed by Orbis Investment Management Limited, our offshore
investment partner. The maximum net equity exposure of the Fund is 75%
and we may use exchange-traded derivative contracts on stock market
indices to reduce net equity exposure from time to time. The Fund is
managed to comply with the investment limits governing retirement funds.
Returns are likely to be less volatile than those of an equity-only fund.

ASISA unit trust category: South African - Multi Asset - High Equity

Fund objective and benchmark

The Fund aims to create long-term wealth for investors within the constraints
governing retirement funds. It aims to outperform the average return of
similar funds without assuming any more risk. The Fund’s benchmark is
the market value-weighted average return of funds in the South African –
Multi Asset – High Equity category (excluding the Allan Gray Balanced Fund).

How we aim to achieve the Fund's objective

We seek to buy shares at a discount to their intrinsic value. We thoroughly
research companies to assess their intrinsic value from a long-term
perspective. This long-term perspective enables us to buy shares which are
shunned by the stock market because of their unexciting or poor short-term
prospects, but which are relatively attractively priced if one looks to the long
term. If the stock market offers few attractive shares we may increase the
Fund’s weighting to alternative assets such as bonds, property, commodities
and cash, or we may partially hedge the Fund’s stock market exposure. By
varying the Fund’s exposure to these different asset classes over time, we
seek to enhance the Fund’s long-term returns and to manage its risk. The
Fund’s bond and money market investments are actively managed.

Suitable for investors who:

  • Seek steady long-term capital growth
  • Are comfortable with taking on some risk of market fluctuation and potential capital loss, but typically less than that of an equity fund
  • Wish to invest in a unit trust that complies with retirement fund investment limits
  • Typically have an investment horizon of more than three years
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Annual management fees and total expense ratio (TER)
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