With the RBA cash rate at all-time lows, many clients may need to be invested in growth assets to meaningfully outperform cash, but they could be reluctant due to risk and complexity. But beating cash doesn’t need to be complicated, nor high risk.
The Allan Gray Australia Stable Fund invests predominantly in cash, but looks to outperform the RBA cash rate over the long term by investing up to 50% of the portfolio in the Australian sharemarket.
Allocation to shares is built up when Allan Gray believes great value is present and reduced when prices are high and value is harder to find. It’s as simple as that.
Since its inception in July 2011, the Fund has returned an annual rate of 6.1% versus the 2% the Reserve Bank of Australia’s cash rate has seen as at 31 May 2021.
With a multitude of uses and having outperformed the sharemarket during the five worst market drawdowns since inception, it’s an attractive option for those looking to outperform cash simply, without being fully exposed to the sharemarket.
Find out more in the article, or watch the video below.
Past performance is not a reliable indicator of future performance. There are risks involved with investing and the value of your investments may fall as well as rise. This article represents Allan Gray's view at a point in time and may provide reasoning or rationale on why we bought or sold a particular security for the Allan Gray Funds or our clients. We may take the opposite view/position from that stated, as our view may change. This article constitutes general advice or information only and not personal financial product, tax, legal, or investment advice. It does not take into account the specific investment objectives, financial situation or individual needs of any particular person and may not be appropriate for you. Before deciding to acquire an interest in the Allan Gray Funds, open an account with Allan Gray Superannuation and Retirement or Allan Gray Investments, or before making any other investment decision, please read the relevant disclosure document available on this website. We have tried to ensure that the information here is accurate in all material respects, but cannot guarantee that it is.
Equity Trustees Limited ABN 46 004 031 298, AFSL No. 240975 is the issuer of units in the Allan Gray Funds. OneVue Wealth Services Limited ABN 70 120 380 627, AFSL No. 308868 is the Responsible Entity and the Operator and Facilitator of the Investor Directed Portfolio Service which includes Allan Gray Investments. Diversa Trustees Limited ABN 49 006 421 638, AFSL No 235153 RSE Licence No L0000635 is the trustee of Allan Gray Superannuation and Allan Gray Retirement. Allan Gray Superannuation and Allan Gray Retirement are superannuation products within OneSuper ABN 43 905 581 638 RSE R1001341.