Allan Gray Australia Funds maintain high ratings
The Allan Gray Australia Equity Fund and Allan Gray Australia Stable Fund have both maintained a ‘Highly Recommended’ rating from Zenith.
The Allan Gray Australia Equity Fund is an actively managed fund with a contrarian, long-term, investment philosophy. When making an assessment on the Fund, Zenith said that the team’s broad skillset gives rise to unique perspectives and as such continue to “retain confidence in Allan Gray’s investment capabilities”.
The Allan Gray Australia Stable Fund uses the same contrarian approach, but the Fund invests predominantly in cash and money market instruments, then adds shares that Allan Gray believes offer a significantly better total return potential than cash with limited downside.
When assessing the Allan Gray Australia Stable Fund Zenith said: “The Fund will typically be invested in Allan Gray’s best risk-adjusted ideas that exhibit the greatest margin of safety. Allan Gray’s investment process is sound and stock ideas are subject to a high degree of robust peer review, ensuring investment theses are well considered and thoroughly researched.”
The Allan Gray Australia Equity Fund and Stable Fund also both retained their 4.5 stars ‘Outstanding’ ratings from SQM.
In the Equity Fund report SQM stated that Allan Gray’s “consistent and rigorous adoption of this [contrarian] investment process in Australia has seen solid long-term performance both against benchmark and peers.”
In the Stable Fund report SQM stated: “The unique cash/term deposit “plus” approach in the Stable Fund offers a lower-volatility alternative to the Allan Gray Australia Equity Fund – likely to appeal to investors with lower risk tolerance or shorter time horizons.” It continued: “The Fund has outperformed the peer group in the long term (5-years and since inception).”
Maintaining our strong ratings in this challenging environment is especially pleasing. These high ratings reflect the level of conviction the researchers have in Allan Gray, the investment approach, and investment team. We are particularly proud of our broader team, who continue to demonstrate and deliver on our objectives every day.
Advisers can see all our Fund ratings by visiting our Adviser Hub.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned ETL0273AU June 2021; ETL0060AU June 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners. com.au/RegulatoryGuidelines
The rating outlined here is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
