Get an income during retirement


Invest your retirement savings and draw an income, sometimes referred to as a pension, with the Allan Gray Living Annuity. Your investment is into your choice of unit trusts.

Watch a 15sec video explaining what a living annuity is

Get an income
You choose your income

You can choose how much income to withdraw, within the legal limits. You can change your income amount and frequency every year.

Have control and flexibility
You have control and flexibility

You choose from our simple range of unit trusts and you can change your selection when you need to, no transaction fees and no penalties

You can nominate beneficiaries
You can nominate beneficiaries

Any money left in your living annuity when you die can be left to your beneficiaries and can be paid immediately, without waiting for your estate to be wound up.

Reasons a living annuity may not be suitable for you

  • Your income is not guaranteed. It depends on your investment value and the return you earn. If your investment value drops, or you do not earn enough return, you may need to draw a lower income than you would like. 
  • If you withdraw too high an income, your investment might not last.
  • Investment performance fluctuates over the short to medium term. You take on the risk that your investment will not perform as you expect.

Choose a unit trust that suits your needs

Your investment returns come from the unit trusts you choose. When choosing a unit trust, there is a trade-off between higher potential return on the one hand, and stability and lower risk on the other. 

Higher risk & return
Stability & lower risk
Allan Gray Equity Fund

Potential for higher long-term return, with more significant fluctuation that could last for many years.

Allan Gray Balanced Fund

Our flagship long-term unit trust. Steady long-term return with moderate fluctuation.

Allan Gray Stable Fund

Less fluctuation with above-inflation return. There may be some fluctuation within a two-year period.

Allan Gray Money Market Fund

Most stability with higher return than bank deposits. May not beat inflation over time but is suitable for short-term needs.

The Allan Gray Equity Fund
Our equity-only unit trust for very long-term investing
Suitable for you if:
  • You want to invest in listed shares for long-term capital growth
  • You are comfortable with significant stock market movement
  • You accept the possibility of losing capital
  • You have at least five years to invest, but preferably longer

Can you tolerate significant ups and downs?

You must be prepared to wait out years in which you may experience performance that may be significantly better, or significantly worse, than in a balanced fund. It is important that you are able to remain invested after a drop, to give your investment time to recover.  

Look at the long-term return 

Returns go up and down, but you can benefit if you have enough time to wait

If you have the time and the patience to leave your money invested despite dramatic and long-lasting ups and downs, the Equity Fund has the potential to deliver higher long-term return. 

To really understand how much an investment has grown over time, it’s important to look at return after inflation.

The Allan Gray Balanced Fund
Our flagship long-term unit trust
Suitable for you if:
  • You are looking for steady, long-term capital growth
  • You are ideally investing for at least three years
  • You are comfortable with taking on some risk of market fluctuation and potential capital loss
  • You wish to invest in a unit trust that complies with legal investment limits for retirement funds

Your one-year returns may test you

Over any year you may experience good performance, or things may go the other way and your investment could lose value. It’s important to prepare yourself for what you could experience while you are invested.

Look at the long-term return.

Returns go up and down, but you can benefit over the long term

Our Balanced Fund aims to deliver steady growth over time. You can benefit if you are able to wait out the short-term ups and downs.

To fully understand how much an investment has grown over time, it’s important to look at return after inflation.

The Allan Gray Stable Fund
Lower fluctuation for short- to medium-term access
Suitable for you if:
  • You are risk averse and want to prioritise protecting your capital
  • You are ideally investing for at least two years
  • You want to achieve returns better than inflation, but are comfortable with lower potential return over time than you might earn in a unit trust that takes on more risk
  • You are comfortable with some market fluctuation within a two-year period
  • You want a unit trust that complies with legal investment limits for retirement funds.

Benefit from less significant ups and downs than the Balanced Fund

The Stable Fund aims to protect your investment over any two years. Over a year you may still experience ups and downs, but these are likely to be less significant than what you might experience in the Balanced Fund.

Look at the long-term return. 

You must be comfortable with lower return over time

If you are investing for the long term, you must be comfortable with lower return than you might earn in a balanced fund.

To fully understand how much an investment has grown over time, it’s important to look at return after inflation.

The Allan Gray Money Market Fund
Preservation and accessibility over the very short term
Suitable for you if:
  • You need a high level of stability and you seek higher returns than bank deposits
  • You only want to invest for about one year

Your one-year returns are stable

The Money Market Fund is suitable for investment for a year or less. The ups and downs are far less significant than a balanced fund. You can access your money when you need to, without worrying about whether your investment has lost value.

Look at the long-term return

To give an indication of the ups and downs you may experience in a balanced fund, we show the average return of similar unit trusts. 

The Money Market Fund is not suitable for long-term investing

The Money Market unit trust aims to deliver more return than bank deposits. But if you are investing for the long term, you must be comfortable with significantly lower return than you might earn in a balanced fund.

 To really understand how much an investment has grown over time, it’s important to look at return after inflation.

Other unit trust options

If you would like offshore exposure, you can invest offshore through us.

We also have specialist unit trusts (the Allan Gray SA Equity Fund, the Allan Gray Bond Fund and the Allan Gray Optimal Fund), which may be more suitable for experienced investors who are comfortable building their own investment portfolio.

If you want to include diversification in your investment strategy, you may also want to invest in unit trusts from other investment managers.

Send me an SMS when the rand-based unit trusts are open again for a basic unit trust investment
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