Allan Gray Namibia Stable Fund

Fund description

The Fund invests in a mix of shares, bonds, property, commodities and cash. The Fund may buy assets outside the common monetary area (CMA) up to a maximum of 35% of the Fund (with an additional 5% for Africa ex-CMA). The Fund typically invests the bulk of its foreign ex-Africa 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% and we may use exchange-traded derivative contracts on stock market indices to reduce net equity exposure from time to time. The Fund is managed to comply with Regulation 13 of the Namibian Pension Funds Act. Returns are likely to be less volatile than those of an equity-only fund or a balanced fund.

Fund objective and benchmark

The Fund aims to provide a high degree of capital stability and to minimise the risk of loss over any two-year period, while producing long-term returns that are superior to bank deposits. The Fund’s benchmark is the daily interest rate, as supplied by Standard Bank Namibia Limited, plus 2%.

Suitable for those investors who

  • Are risk-averse and require a high degree of capital stability
  • Seek both above-inflation returns over the long term, and capital preservation over any two-year period
  • Require some income but also some capital growth
  • Wish to invest in a unit trust that complies with retirement fund investment limits

Annual management fee

Allan Gray charges a fee on the portion of the fund they manage, excluding the portion invested in Orbis funds. The fee rate is calculated daily by comparing the portfolio’s cumulative return from the date of inception of the portfolio to the day relevant for the calculation or by comparing the Fund’s total performance over the shorter period of either the last two years or since inception to that of the benchmark. Once the Fund has been in existence for two years, Allan Gray will not charge a fee should the Fund’s cumulative return over the last two years be equal to or less than 0%. 

Fee for performance equal to the Fund’s benchmark: 1.00% p.a.*
For each percentage of two-year performance above or below the benchmark we add or deduct 0.1%, subject to the following limits: 

Maximum fee: 1.50% p.a.* 
Minimum fee: 0.50% p.a.*

This means that Allan Gray shares in approximately 20% of annualised performance relative to the benchmark. 

A portion of the Fund may be invested in Orbis funds. Orbis charges performance-based fees within these funds that are calculated based on each Orbis fund’s performance relative to its own benchmark.

*Management fees charged for the management of unit trust portfolios do not attract VAT.

View our Forms & documents page to invest in this fund.

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