Allan Gray Balanced Fund

The Allan Gray Balanced fund is one of the best performing unit trusts in the balanced fund arena. The Allan Gray Balanced Fund is a unit trust that focuses on long term capital appreciation by investing in a mix of assets which comply with retirement fund investment limits. Returns are likely to be less volatile than those of equity funds. This unit trust’s objective is to establish long-term wealth for investors. It aims to outperform its peers in its sector (multi asset, high equity) without assuming more risk. The fund’s strategy is to buy shares at a discount to their intrinsic values and to vary the fund’s exposure to the different asset classes in order to enhance returns and manage risk.

The fund aims to outperform the market value-weighted average return of funds in the fund category: South African – Multi Asset – High Equity.

This unit trust would be suitable for retirement annuity investments as it complies with the relevant RA regulations. This fund has exposure to shares (max 75%), bonds, commodities, property and cash. In order to reduce net equity exposure, derivatives contracts on market indices may be used. The fund can have up to 25% offshore exposure. The top three share holdings are Sasol, British American Tobacco, and SAB Miller. The top ten share holdings make up approximately 27% of the portfolio. The fund has 55.7% exposure to net equity. It also has maximum exposure to foreign assets, as is allowed under the limits governing retirement funds.