The Allan Gray Australia Equity Fund and Stable Fund have maintained the highest ratings awarded by Lonsec – ‘Highly Recommended’.
A ‘Highly Recommended’ rating indicates that Lonsec “has very strong conviction that the financial product can generate risk adjusted returns in line with relevant objectives.” The report notes that the Allan Gray Australia Equity Fund (Equity Fund) applies a “staunch, contrarian investment strategy and the Equity Fund has delivered strong risk-adjusted returns over the long term.”
When making an assessment on each of the Equity Fund and the Allan Gray Australia Stable Fund (Stable Fund), Lonsec highlighted a number of key strengths including “…the investment team is highly educated with a diverse range of industry and academic backgrounds. They exhibit strong buy-in to the firm’s investment philosophy and are strongly aligned with end investors.”
The recently released Equity Fund report notes that Allan Gray Australia is “far more ‘benchmark unaware’ than the majority of fund managers in the Lonsec value peer group” and continued that they consider the Allan Gray Australia “relatively unconstrained research mandate to be a strong differentiating feature.”
In summary, Lonsec commented that the “…contrarian nature of the strategy holds intuitive appeal and continues to demonstrate superior peer-relative returns over the very long term of 10 years.”
With regards to the Stable Fund, “Lonsec believes the Stable Fund offers investors a genuinely differentiated offering that is contrarian and highly opportunistic and has delivered strong risk-adjusted returns over the long term.”
These continued strong ratings are testament to the highly focused contrarian investment approach Allan Gray has been operating in Australia for over fifteen years. We are extremely proud of the continued hard work and discipline of the whole team at Allan Gray Australia who work together to deliver on our purpose of building long-term wealth for our clients.
A detailed list of ratings is available for financial planners at the Allan Gray adviser hub.
The rating issued September 2021 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of the advice, having regard to your personal circumstances, objectives, financial situation and needs, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. ©2021 Lonsec. All rights reserved.