Allan Gray Stable Fund

The Allan Gray Stable Fund aims to provide a high degree of capital stability, reduced risk of loss over two years and long-term returns above bank deposits. The Fund invests in shares, bonds, property, commodities and cash. The Fund can invest a maximum of 45% offshore. The Fund typically invests the bulk of its foreign allowance in a mix of funds managed by Orbis Investment Management Limited, our offshore investment partner. The maximum net equity exposure of the Fund is 40%. Furthermore, the Funds management complies with Regulation 28 standards.

• Are risk-averse and require a high degree of capital stability
• Capital preservation over a two-year period
• Seek above inflation returns over the long term
• Require some income but also some capital growth
• Wish to invest in a unit trust that is Regulation 28 compliant

FirstRand Bank Limited - daily interest rate plus 2%

The Allan Gray Stable Fund aims to deliver its objective by majorly investing in money market instruments. The Fund generates returns by investing in shares selling at a significant discount to their intrinsic value. The Fund managers use in-house research to identify JSE-listed companies whose share prices are underpriced relative to their long-term intrinsic value. This long-term perspective enables them to buy shares shunned by the stock market because of their unexciting/poor short-term prospects. However, which may present relative value in the long term. Equity allocations may reduce when the stock market offers few attractive shares, considering the Fund’s capital preservation objectives. The Fund may also invest in bonds, property and commodities. The Fund’s bond and money market investments are actively managed.