Understanding the investment options in the Allan Gray Umbrella Retirement Fund

The Allan Gray Umbrella Retirement Fund offers two trustee-approved default investment strategies:

  • Allan Gray default investment strategy
  • Multi-manager default investment strategy

You must choose one of these options as the default investment strategy into which your employees’ contributions will automatically be invested. Employees can opt out of the default strategy. In this case, they must choose from one of the options described below.

You may be interested in reviewing the Umbrella Fund Default Investments Survey. Sponsored and initiated by Allan Gray, this survey is produced by independent advisory company GraySwan. It is an independent, factual report designed to help you make quick and easy comparisons of default investment strategies across multiple umbrella fund providers in South Africa. You can download a copy of the latest available survey here.

Appropriate investments for employees’ stage of life

The default investment strategies are designed to automatically transition employees’ retirement savings into portfolios that are appropriate for the number of years they have until they reach retirement (their investment horizon).

Younger employees, who have a longer savings time horizon, are invested in portfolios with greater exposure to growth assets, which will provide the best opportunity for their assets to grow over the long term, and have ample time to recover if there is a downturn. 

Employees who are closer to retirement are invested in lower-risk portfolios to reduce the risk of permanently losing money. 

The table explains this process in more detail. No action is required for employees to benefit from this approach.

Choice at no additional cost

Your employees can opt out of your chosen default investment strategy if they want to. They must then choose from one of the options described below.

They can also opt out of life-staging if they do not want their savings automatically transitioned from one portfolio to another in the three years preceding retirement.

They can opt back into the default investment strategy and life-staging at any point in time.

Please refer your employees to the latest Member information booklet  for more detailed information.

Options available to employees

The portfolios included are the Allan Gray Balanced Portfolio and the Allan Gray Stable Portfolio.

Suitable if employees:

  • Want to invest with Allan Gray only
  • Want to be invested in a trustee-approved default investment strategy
  • Want the option of investing in a strategy designed to automatically transition their retirement savings into portfolios that are appropriate for their investment horizon to retirement, with the retirement age being determined by the employer

The portfolios included are the Multi-Manager Moderate Portfolio and the Multi-Manager Cautious Portfolio.

Suitable if employees:

  • Want to invest with Allan Gray and third-party managers
  • Want to be invested in a trustee-approved default investment strategy
  • Want the option of investing in a strategy designed to automatically transition their retirement savings into portfolios that are appropriate for their investment horizon to retirement, with the retirement age being determined by the employer

You may choose to create an “employer preferred portfolio”, usually with the help of a consultant or adviser.

Suitable if employees:

  • Want to invest in a portfolio their employer has created
  • Prefer not to have their retirement savings automatically transitioned as they approach retirement

The Allan Gray Umbrella Fund portfolio list is carefully curated and only includes managers who have a 10-year or longer track record of strong investment performance. All of the portfolios comply with the retirement fund regulations.

Suitable if employees:

  • Want to construct their own portfolios, with the help of an independent financial adviser, if necessary
  • Prefer not to have their retirement savings automatically transitioned into portfolios that are appropriate for their investment horizon to retirement

The financial services, products or investments referred to on this website are not available to persons resident in jurisdictions where their availability or distribution would contravene local laws or regulations and the information on this website is not intended for use by these persons. This website is for information only and does not in any way constitute a solicitation or offer by Allan Gray Proprietary Limited or any of its associates or subsidiaries (collectively “Allan Gray”) to buy or sell any financial instruments or to provide any investment advice or service.

By selecting one of the countries below I confirm that I have read and understood the above and that:

(a) I am not a South African citizen; or 
(b) I do not reside in the Republic of South Africa; or 
(c) I am not otherwise a person to whom the communication of the information contained in this website is prohibited by the laws of my home jurisdiction; and 
(d) I am not acting for the benefit of any such persons mentioned in (a),(b) and (c) and 
(e) I confirm that any investment with Allan Gray is based on my own initiative and not due to any offer or solicitation by Allan Gray.

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