The Allan Gray Optimal Fund aims to provide investors with long-term positive returns higher than those available in the money market sector, irrespective of stock market returns. The Fund’s return depends on the level of short-term interest rates and the performance of the Fund’s selected shares relative to the stock market index. Therefore, the Fund’s return is unlikely to be correlated with equity market returns. In addition, the Fund has a conservative bias, typically invested in cash and margin deposits.
FirstRand Bank Ltd Daily Interest Rate
The Allan Gray Optimal Fund invests in selected shares and seeks to substantially reduce stock market risk by selling exchange-traded equity index derivatives. The share portfolio chosen is derived from their thorough research process; the Funds selection of equities may differ from that of other Allan Gray funds. The Fund invests mainly in selected shares, using exchange-traded derivative contracts on stock market indices to substantially reduce its net equity exposure to within a range of 0-20%.