Allan Gray

Allan Gray Stable 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 40%.
The Fund’s net equity exposure may be reduced from time to time using
exchange-traded derivative contracts on stock market indices. 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 or a
balanced fund.

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

Fund objective and benchmark

The Fund aims to provide a high degree of capital stability and to minimise
the risk of loss over any two-year period, while producing long-term returns
that are superior to bank deposits. The Fund’s benchmark is the daily interest
rate as supplied by FirstRand Bank Limited plus 2%. Historically the Fund’s
performance and benchmark were on an after-tax basis at an assumed tax
rate of 25%. We have removed this tax adjustment from 1 August 2013.

How we aim to achieve the Funds objective

A major portion of the Fund is typically invested in money market
instruments. We seek to deploy the Fund’s cash by investing in shares when
they can be bought at a significant discount to their intrinsic value. We
thoroughly research companies to assess their intrinsic value from a longterm
perspective. This long-term perspective enables us to buy shares which
are shunned by the stock market because of their unexciting or poor shortterm
prospects, but which are relatively attractively priced if one looks to
the long term. If the stock market offers few attractive shares, we may
allocate a low weight to shares or partially hedge the Fund’s stock market
exposure in consideration of the Fund’s capital preservation objectives. The
Fund may also invest in bonds, property and commodities. The Fund’s bond
and money market investments are actively managed.

Suitable for investors who:

  • Are risk-averse and require a high degree of capital stability
  • Seek both above-inflation returns over the long term, and capital preservation over any two-year period
  • Require some income but also some capital growth
  • Wish to invest in a unit trust that complies with retirement fund investment limits 
You should ensure that the funds you select are appropriate for your needs and objectives. Please click here for fund factsheets, which offer a detailed explanation of the nature of the Funds and their fee structures, and click here for important information for investors.
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Annual management fees and total expense ratio (TER)
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