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.
That’s the essence of a recent feature on the Allan Gray Australia Stable Fund that appeared in Financial Standard. You can read the editorial or watch the short video below to make sure you don’t miss out on learning more about this unique Fund and how advisers are using it with their clients.
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.
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Equity Trustees Limited ABN 46 004 031 298, AFSL No. 240975 is the issuer of units in the Allan Gray Australia Balanced Fund ARSN 615 145 974, Allan Gray Australia Equity Fund ARSN 117 746 666 and Allan Gray Australia Stable Fund, ARSN 149 681 774 (Allan Gray Funds) and units in the Orbis Global Equity Fund (Australia registered) ARSN 147 222 535, Orbis Global Equity LE Fund (Australia registered) ARSN 613 753 030 and Orbis Global Balanced Fund (Australia registered) ARSN 615 545 170 (Orbis Funds). Allan Gray Australia Pty Limited ABN 48 112 316 168, AFSL No. 298487 is the investment manager of the Allan Gray Funds.
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 represents Allan Gray Australia Pty Limited and Orbis Investment Advisory Pty Limited’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 or Orbis Funds or our clients. We may take the opposite view/position from that stated, as our view may change. If this article is authored by Orbis, it does not prohibit the Orbis Funds from dealing in the securities before or after this article is published. 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. We have tried to ensure that the information here is accurate in all material respects, but cannot guarantee that it is.
You should consider the relevant funds’ Product Disclosure Statement (PDS) or Information Memorandum (IM), as applicable, before acquiring, holding or disposing units in the Allan Gray or Orbis Funds. The PDS or IM can be obtained from
www.orbis.com.au and www.allangray.com.au.
Target Market Determinations (TMDs) for the Allan Gray products can be found at
allangray.com.au/PDS-TMD-documents,
while TMDs for the Orbis Funds can be found at www.orbis.com.au on the 'Forms' page under 'How to Invest'. Each TMD sets out who an investment in the relevant Allan Gray or Orbis Funds might be appropriate for and the circumstances that trigger a review of the TMD.
Managed investment schemes are generally medium to long-term investments. They are traded at prevailing prices and the value of units may go down as well as up. There are risks with investing the Fund and there is no guarantee of repayment of capital or return on your investment. Subject to relevant disclosure documents, managed investments can engage in borrowing and securities lending. A schedule of fees and charges is available in the PDS.