The Allan Gray Bond Fund invests in South African interest-bearing securities. Securities include national government, parastatal, municipal, corporate bonds, and money market instruments. The Fund price is sensitive to interest rate movements because of the long-term nature of the Fund’s investments. The duration of the Fund may differ materially from the benchmark. The Fund is managed to comply with investment limits governing retirement funds.

• Seek a bond ‘building block’ for a diversified multi-asset class portfolio
• Are looking for returns that are above money market returns
• Are prepared to accept more risk of capital depreciation than in a money market or cash investment

FTSE/JSE All Bond Index

The Allan Gray Bond Fund aims to balance credit, duration, and liquidity risks when selecting investments. The fund is actively managed and seeks to generate total returns for investors rather than trying to mirror/track the returns of the FTSE/JSE All Bond Index. When the managers cannot find value in the bond markets, the fund may allocate more funds towards cash investments to obtain better returns.