Explaining the Allan Gray unit trust fee changes
Following a review of the fees and pricing across our product range, we are making changes to some of our fees from 1 February 2027.
These changes may impact you if you are invested in Allan Gray funds via an Allan Gray Unit Trust Management account (i.e. your account number starts with AGUT).
Learn more about what these changes mean for your investments.
Allan Gray and Orbis will update the way performance fees are calculated to create a more consistent approach across Allan Gray and Orbis funds.
From 1 February 2027, we will be introducing a new fund class for the Allan Gray Money Market Fund and Allan Gray Bond Fund, which will have higher fees than the existing class. The current fees for these funds have effectively excluded administration fees, and the fees for the new class will include administration fees equivalent to those charged on other Allan Gray funds.
From 1 February 2027, you will no longer be able to make new investments or additional contributions to the existing class of these funds. All new investments and additional contributions to the Allan Gray Money Market Fund and Allan Gray Bond Fund will be invested in a new class of these funds.
The fee changes outlined below are for investments made after 1 February 2027 only. The fees applicable to all investments made up until 31 January 2027, including any subsequent reinvestments relating to those amounts, will remain unchanged.
The performance fee calculation methodology changes are expected to result in the same average investment management fee over time for most Allan Gray funds that charge a performance fee, including the Allan Gray Balanced Fund, Allan Gray Equity Fund and Allan Gray Stable Fund. However, the exceptions are the Allan Gray SA Equity Fund, Allan Gray Optimal Fund and Allan Gray - Orbis Global Optimal Fund of Funds.
The overall fees for all other Allan Gray funds, except the Allan Gray Money Market Fund and Allan Gray Bond Fund, will remain unchanged.
Due to these funds’ fee structure, should the funds outperform in future, the fees could be similar or higher relative to the current methodology.
For example, if the funds outperform their benchmarks by approximately 2% per annum in future, the fees could increase by 0.06% per annum (incl. VAT) relative to the current methodology.
The changes we are making to align how performance fees are calculated across Allan Gray and Orbis funds will result in the fee for the Allan Gray - Orbis Global Optimal Fund of Funds increasing by 0.06% per annum.
The fees for investments in the existing A Class versions of these funds will not change. Existing investments, including any reinvestments, can remain invested in the current class of the funds.
All new contributions, including existing debit orders, will be invested in the new class of the funds. The fees for investments in the new class of the Allan Gray Bond Fund and Allan Gray Money Market Fund will reflect an increase of 0.2% and 0.3% per annum (excl. VAT) respectively.
