The Allan Gray Bond fund is a moderately conservative fund that invests in interest baring domestic securities. The fund aims to give good returns over the long term, with the aim of outperforming the All Bond Index. As the fund invests a large portion of its assets into local bonds, the South African interest rate has a significant influence in its performance.
Want lower volatility than directly investing into bonds
Want a fund manager to handle bond investment
The fund aims to beat South African direct bond investment.
The Allan Gray Bond Fund invests in Bonds and Money Market Instruments in the following way: Government bonds (33.2%), State owned enterprises, government guaranteed (16.2%), State owned enterprises, not government guaranteed (12.7%), Corporate Bonds (23.5%) and Money Market Instruments (14.4%).