The Fund seeks to provide long-term returns that are higher than the custom benchmark. In doing so, the Fund aims to balance capital growth, income generation and risk of loss using a diversified portfolio.
Investment approach
In carrying out our contrarian investment approach, the Balanced Fund has significant freedom to invest in different asset classes to take advantage where we see opportunities. This means we have great flexibility and can capitalise when we believe that markets are attractive. Our target range is to have anything between 40%-90% of the Fund invested in shares and 10%-50% in fixed income and cash, and 0-10% in commodity -linked instruments depending on where the opportunities are. The Fund’s portfolio may from time to time move outside these ranges in pursuit of the Fund’s investment objectives.
Going against human instinct and taking a contrarian approach to investing is not for everyone. It takes true discipline and commitment in your convictions. The Fund leverages our time-tested contrarian investment strategy across a diversified portfolio and is benchmark unaware as we focus on long-term results.
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 may enable us to deliver better outcomes.
This Fund combines Allan Gray Australia’s domestic specialisation with Orbis Investment’s global markets expertise.
While the Fund offers a broad investment mix to balance risk, its focus is to drive performance. We can vary the Fund’s 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.
To learn more about our Funds, please do not hesitate to contact us directly by phone or email.
Investors in the Fund will pay management fees and costs (base fee) of 0.76% p.a and a performance fee of 20.3%. These fees are included in the daily unit price for the Fund.
If after deducting the base fee (if applicable), the Fund’s return is higher than the benchmark’s return, then a performance fee is charged on the excess return. A high-water mark is in place to ensure that you only pay once for performance which exceeds the benchmark. The base fee and the performance fee (if applicable) are calculated and accrued daily and paid monthly. Goods and Services Tax, net of Reduced Input Tax Credit, is applicable to the base fee and the performance fee and reflected accordingly.
The total fees and costs, outlined below, is a measure of the actual fees and costs incurred by the Fund over a 12-month period, expressed as a percentage of the average daily value of the Fund for the same period. Fees and costs may vary and the current total fees and costs should not be used as an indication of future total fees and costs. See the disclosure documents for more information about the fees and costs that apply to this Fund.
| Financial Year | Indirect cost ratios |
|---|---|
| 30 June 2022 | 0.78% |
| 30 June 2023 | 0.79% |
| 30 June 2024 | 0.78% |
