Allan Gray Namibia Balanced 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 75% 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.

Fund objective and benchmark

The Fund aims to earn a higher total rate of return than that of the average Namibian retirement fund investment manager over the long term. The benchmark is the return of a daily weighted average index of Namibian multi asset class funds that comply with the limits governing Namibian retirement funds.

Suitable for those investors who

  • Seek steady long-term capital growth
  • Are comfortable with taking on some risk of market fluctuation and potential capital loss, but typically less than that of an equity fund
  • Wish to invest in a unit trust that complies with retirement fund investment limits
  • Typically have an investment horizon of more than three years

Annual management fee

Allan Gray charges a fee based on the net asset value of the Fund excluding the portion invested in Orbis funds. The fee rate is calculated daily by comparing the Fund’s total performance over the last two years, to that of the benchmark. 

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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