Allan Gray Australia Balanced Fund
For those wishing to balance risk whilst seeking capital growth from a diversified portfolio of shares, fixed income, cash and commodity investments from Australia & overseas. The Fund seeks to earn long term returns, higher than the custom benchmark*.
To achieve returns that exceed inflation over time, you should be invested in growth assets – a strategy that’s not always easy, especially during periods of market volatility. Designed to leverage our contrarian approach, the Allan Gray Australia Balanced Fund combines the performance potential you’re looking for with the ability to go against market consensus, giving you the flexibility you need to drive results.
*The Allan Gray Australia Balanced Fund seeks to provide long-term returns that are higher than the custom benchmark. The custom benchmark comprises the S&P/ASX 300 Accumulation Index (36%), S&P/ASX Australian Government Bond Index (24%), MSCI World Index (net dividends reinvested) expressed in AUD (24%) and JP Morgan Global Government Bond Index expressed in AUD (16%).
Why choose the Allan Gray Australia Balanced Fund?
Performance driven with the flexibility to adapt
While the Fund offers a broad investment mix to balance risk, its focus is to drive performance, as it is long-term returns that grow wealth. We can vary its exposure to different asset classes depending on where we find value, the potential for capital growth and income, and risk of loss. This flexibility helps us drive long-term returns while seeking to reduce the impact of major market falls.
Time-tested contrarian investment philosophy
Going against human instinct and taking a contrarian approach to investing is not for everyone. It takes true discipline and commitment in your convictions. Allan Gray Australia and Orbis Investments were both founded by Dr Allan Gray and share the same investment philosophy that the group has used for over 50 years.
Better returns require a strong foundation
To reduce risk and generate higher long-term returns we aim to buy the right assets at the right price. Prioritising our long-term view in our fundamental analysis gives us a competitive edge that allows us to deliver better outcomes. We focus on understanding an asset's underlying intrinsic value, the drivers that determine this, and the gap between this value and the price you can buy it for.
Global expertise in managing balanced portfolios
Since 1999, Allan Gray in South Africa has been successfully managing balanced portfolios, which we brought to the Australian market with the launch of the Allan Gray Australia Balanced Fund in 2017. This Fund combines Allan Gray Australia's domestic specialisation with Orbis Investment's global markets expertise.
The Fund invests in a mix of shares, fixed income, commodity linked instruments and cash using Allan Gray’s active investment approach. At any given time, the Fund will hold a selection of shares and fixed income instruments from around the world that are considered to be most undervalued compared to our assessment of their intrinsic value.
Global/Australian allocation
Generally: 60% Australian / 40% global
When there are fewer opportunities in Australia or global markets become more attractive, the Fund may become more heavily weighted towards global assets and vice versa.
Custom benchmark
The custom benchmark comprises the S&P/ASX 300 Accumulation Index (36%), S&P/ASX Australian Government Bond Index (24%), MSCI World Index (net dividends reinvested) expressed in AUD (24%) and JP Morgan Global Government Bond Index expressed in AUD (16%).
Asset class allocation
The fund has the ability to take advantage of market movements with wide ranges for investment. The fund does not have industrial or market sector investment targets, however it is anticipated that the Fund portfolio will hold:
- 40-90% in equities
- 10-50% in fixed income and cash
- 0-10% in commodity-linked instruments
Please download the latest Fund Fact Sheet to see the Fund's latest top ten holdings, sector allocations and classifications of holdings.
The information provided above has been issued by Allan Gray Australia Pty Limited ABN 48 112 316 168, AFSL No. 298487. Equity Trustees Limited ABN 46 004 031 298, AFSL 240975 is the issuer of units in the Allan Gray Australia Equity Fund, Allan Gray Australia Balanced Fund and Allan Gray Australia Stable Fund.
This information is of a general nature and is not an offer to sell, or a solicitation to buy, interests in any financial products. It has been prepared without taking into account the individual objectives, financial situation or needs of any particular person. Before acting, you should consider its appropriateness having regard to your objectives, financial situation or needs and consider seeking financial advice. You should obtain the relevant disclosure documents to any of the financial products mentioned above before deciding to acquire, dispose of or hold an investment in these products.
Disclosure documents including the Target Market Determinations can be found at allangray.com.au/PDS-TMD-documents. Past performance of any financial product mentioned is not a reliable indication of future performance. When making an investment, an investor’s capital is at risk. We have tried to ensure that the information here is accurate in all material respects, but cannot guarantee that it is.
As contrarian investors, we don't run with the pack.
At Allan Gray, our investment philosophy is simple – we take a contrarian approach, apply it consistently and invest for the long term.
We never try to guess external sentiments, the next share price movement or trends. Instead, we scrutinise opportunities that aren’t necessarily ‘obvious’. We search for value in places others overlook or undervalue. Then we determine the things that drive the company’s performance and hence its value over the next five or even ten years.
This is how we’ve been investing in Australia for the past 15 years and how the broader group has been investing globally for over 50 years.
The Allan Gray investment approach
There are three distinct characteristics within our strategy:
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Contrarian – in a highly competed market, where everyone has access to the same information, we thrive by not following the crowd. As contrarians, we resist trends and uncover opportunities in areas others have overlooked or undervalued. It puts us in a space where we face little competition, where an investor’s greatest assets are patience and independent thinking.
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Long-term – in an increasingly competitive market, practicing patience can give you a distinct advantage. By waiting for the right opportunity to buy, and giving an investment time for its value to develop, you may discover enormous potential for an undervalued company.
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Fundamental – we seek out companies that are out of favour and wait for an opportunity to buy at a price well below their value. We study a company’s fundamentals, and then calculate what we believe to be its true value.
Our investment approach has outperformed the market over the long term, but it requires restraint and patience. It can mean periods of short‐term underperformance while we wait for the market to recognise the value we’ve identified in shares. Our Funds can look markedly unlike those of our peers. You’ll need to be sure that you’re comfortable holding a fund that looks and performs differently from the others in your portfolio.
Watch our videos to hear from members of our team on what makes our distinctive investment philosophy stand out.
Simon joined Allan Gray in 2006 as an analyst. Before this, he was at Alliance Bernstein, Macquarie Bank and Deloitte Touche. Simon has a Bachelor of Business Science with First Class Honours (majoring in Finance and Business Strategy) and a Postgraduate Diploma in Accounting from the University of Cape Town. Simon was a Chartered Accountant and is a CFA Charterholder.
Suhas joined Allan Gray as an analyst in 2011 and has been a portfolio manager since 2016. Prior to this, Suhas spent five years at McKinsey & Co, leaving as an engagement manager. He has a Bachelor of Science with Honors from the California Institute of Technology and holds a Doctor of Philosophy in Mathematics from Stanford University.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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