We are pleased to announce an important change for Allan Gray.

While our funds and the day-to-day management of Allan Gray Australia will continue as usual and be managed in exactly the same way and by the same team, our founder and major stakeholder Allan Gray has introduced a new ownership structure.

The Gray family has decided to transfer their controlling interest in the company to the newly-formed Allan and Gill Gray Foundation. The benefits flowing to the Foundation will be devoted exclusively to philanthropic endeavours.

This is an exciting and positive change for us, our clients and the communities we operate within.

The benefits for Allan Gray Australia and our clients

Allan Gray Australia has always been a privately-owned company, as we believe being owned by people who understand our investment philosophy allows us to stick to our investment discipline at all times, rather than appeasing external shareholder demands for short-term earnings and profit growth.

Since inception, the ownership has included senior local staff, Dr Simon Marais’ family interests and the Orbis Group. The Orbis Group is a global investment manager which shares the same investment approach, culture and commitment to our clients as the Allan Gray Group.

The Gray family is a major shareholder in both the Allan Gray and Orbis groups and for some time they have been planning to establish a long-term ownership structure for the groups. The family is now in a position to transfer its interests from existing Gray family trusts to the Allan & Gill Gray Foundation.

The Allan and Gill Gray Foundation has no owners in the traditional sense. It is instead designed to exist in perpetuity and will control the Allan Gray and Orbis groups after the founding generation passes away.

The Foundation serves two explicit purposes:

  1. to promote the commercial success, continuity and independence of the Allan Gray and Orbis groups, and
  2. to ensure that the distributable profits the Foundation receives from these firms are ultimately devoted exclusively to philanthropy.

What is the new ownership structure?

The businesses within the Allan Gray and Orbis groups will not be managed by the Foundation. Rather, the Foundation has created a wholly-owned subsidiary, Orbis Allan Gray Limited, to oversee the management of the Foundation’s asset management firms.

The new structure will reinforce our ever-present alignment of interests amongst clients, employees, and owners of the firms. This allows us to remain focused on adding value on our clients’ behalf for generations to come.

With the economic benefits of the Foundation’s holdings in Orbis ultimately going to philanthropy, the Foundation will empower a broader segment of society to reach its full potential. This is an important purpose and very much in keeping with the Gray family’s long-held intentions. We consider this both the right thing to do and a small but necessary contribution towards society.

Rather than being a way of “giving back”, philanthropy is seen by the Gray family as a natural extension of what Allan Gray and Orbis do each day. Just as these companies strive to promote their clients’ financial security and peace of mind, the Allan & Gill Gray Foundation will strive to make a positive contribution to the common good.

This is positive for investors in our funds, as it allows the firm to remain entirely focused on adding value for clients for generations to come, while ensuring that the economic benefits of its controlling interests are ultimately devoted to philanthropy.

JD de Lange holds a B. Proc Degree (University of Pretoria) and is an admitted attorney and CFP in South Africa.