With the RBA cash rate at all-time lows, many clients may need to be invested in growth assets to meaningfully outperform cash, but they could be reluctant due to risk and complexity. But beating cash doesn’t need to be complicated, nor high risk.
That’s the essence of a recent feature on the Allan Gray Australia Stable Fund that appeared in Financial Standard. You can read the editorial or watch the short video below to make sure you don’t miss out on learning more about this unique Fund and how advisers are using it with their clients.
The Allan Gray Australia Stable Fund invests predominantly in cash, but looks to outperform the RBA cash rate over the long term by investing up to 50% of the portfolio in the Australian sharemarket.
Allocation to shares is built up when Allan Gray believes great value is present and reduced when prices are high and value is harder to find. It’s as simple as that.
Since its inception in July 2011, the Fund has returned an annual rate of 6.1% versus the 2% the Reserve Bank of Australia’s cash rate has seen as at 31 May 2021.
With a multitude of uses and having outperformed the sharemarket during the five worst market drawdowns since inception, it’s an attractive option for those looking to outperform cash simply, without being fully exposed to the sharemarket.
Find out more in the article, or watch the video below.
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Equity Trustees Limited ABN 46 004 031 298, AFSL No. 240975 is the issuer of units in the Allan Gray Australia managed investment funds (Allan Gray Funds) and units in the Orbis Global managed investment funds domiciled in Australia (Orbis Funds).
Past performance is not a reliable indicator of future performance. There are risks involved with investing and the value of your investments may fall as well as rise. This represents Allan Gray Australia Pty Limited and Orbis Investment Advisory Pty Limited’s view at a point in time and may provide reasoning or rationale on why we bought or sold a particular security for the Allan Gray or Orbis Funds or our clients. We may take the opposite view/position from that stated, as our view may change. This article constitutes general advice or information only and not personal financial product, tax, legal, or investment advice. It does not take into account the specific investment objectives, financial situation or individual needs of any particular person and may not be appropriate for you. Before deciding to acquire an interest in the Allan Gray or Orbis Funds, or before making any other investment decision, please read the relevant disclosure document available on this website. We have tried to ensure that the information here is accurate in all material respects, but cannot guarantee that it is. Target Market Determinations (TMDs) for the Allan Gray products can be found at
allangray.com.au/PDS-TMD-documents,
while TMDs for the Orbis Funds can be found at www.orbis.com.au on the 'Forms' page under 'How to Invest'. Each TMD sets out who an investment in the relevant Allan Gray or Orbis product might be appropriate for and the circumstances that trigger a review of the TMD.
You should consider such funds’ Product Disclosure Statement (PDS) or Information Memorandum (IM), as applicable, before acquiring or disposing units in such funds’. The PDS or IM can be obtained from www.orbis.com.au and www.allangray.com.au.