Explaining the Orbis fund fee changes
From 1 February 2027, Allan Gray and Orbis will make changes to how performance fees are calculated to create a more consistent approach across Allan Gray and Orbis funds. This follows a review of fees and pricing across our product range.
If you are invested in an Orbis fund through the Allan Gray Offshore Investment Platform or Allan Gray Offshore Endowment, you will be impacted by these changes.
Orbis’ performance-based investment management fees consist of two components:
- A base fee, which is the fee that is charged for performance equal to the benchmark.
- A performance component, which depends on the outperformance or underperformance of the fund, after the deduction of the base fee, relative to its benchmark (i.e. alpha).
Orbis currently calculates the performance component at a fund level. From 1 February 2027, Orbis will update the way performance fees are calculated to make the calculation more specific to each class of their funds. Orbis will deduct the base fee applicable to each class, being the fee that is charged for performance equal to the benchmark, to calculate the outperformance or underperformance of the class and any performance fee applicable. This approach will be consistent with how performance fees are calculated in Allan Gray funds.
In conjunction with the performance fee methodology change, the base fee of the Orbis Global Equity Fund, Orbis SICAV Global Balanced Fund, Orbis SICAV Emerging Markets Equity Fund and Orbis SICAV Japan Equity (Yen) Fund will reduce from 0.80% to 0.70% per annum. Overall, this will ensure that investors experience similar investment management fees over time for these funds.
The base fees of the Orbis Optimal SA Fund and Orbis SICAV Global Cautious Fund will remain the same. However, as a result of the change to Orbis’ performance fee calculation methodology, the average investment management fees for these funds will increase by 0.06% and 0.075% per annum respectively.
