The Allan Gray Australia Equity Fund and Allan Gray Australia Stable Fund have both maintained a “Highly Recommended” rating from Zenith.
When making an assessment on the Equity Fund, Zenith said that the team’s broad skillsets gives rise to unique perspectives and as such continue to “retain confidence in Allan Gray’s investment capabilities”.
The Allan Gray Australia Equity Fund is an actively managed fund with a contrarian, long-term, investment philosophy. As the Fund invests in shares that are often overlooked, it can tend to look very different to its peers. The Fund invests in shares that offer long-term value, regardless of benchmark weight.
The Allan Gray Australia Stable Fund uses the same contrarian approach but will never have more than 50% invested in shares as it aims to deliver lower volatility and outperform the RBA cash rate over the long term. The Fund invests predominantly in cash and money market instruments, then adds shares that the manager believes offer a significantly better total return than cash with limited downside.
When assessing the Allan Gray Australia Stable Fund Zenith said: “All investment opportunities will be assessed relative to cash and, accordingly, the Fund will typically be invested in Allan Gray’s best risk-adjusted ideas that exhibit the greatest margin of safety. Allan Gray’s investment process is sound and stock ideas are subject to a high degree of robust peer review, ensuring investment theses are well considered and thoroughly researched.
“Allan Gray adopts a contrarian investment approach that Zenith considers to be differentiated amongst its peers. Zenith has high regard for the team’s broad skillsets, derived from both investment and non-investment backgrounds, believing they give rise to unique perspectives.”
Maintaining our strong ratings in this challenging environment is especially pleasing. We’ve used the same contrarian investment approach across all our Funds since our inception in Australia 14 years ago and this won’t change. Retaining these ratings is testament to our enduring philosophy and the team’s ongoing commitment to providing long-term wealth for our clients.
Advisers can see all the research house ratings in our Adviser Hub. Click here to visit the research page.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2020) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners. com.au/RegulatoryGuidelines