Allan Gray Africa Equity Fund

Fund description

The Fund invests in a focused portfolio of companies with significant business interests in Africa, regardless of the location of the stock exchange listing. The Fund price is reported in US dollars but the underlying holdings are denominated in various currencies. Returns are likely to be volatile.

Fund objective and benchmark

The Fund aims to outperform African equity markets over the long term without taking on greater risk of loss. The Fund’s benchmark is the MSCI Emerging and Frontier Markets Africa Index (total returns).

Suitable for those investors who:

  • Seek exposure to African equities
  • Are comfortable with stock market and currency fluctuations
  • Are prepared to take on the risk of capital loss
  • Typically have an investment horizon of more than five years

 The Fund is not available to South African residents.


The Allan Gray Africa Equity Fund currently has limited capacity and thus is limiting new investments. Allan Gray Bermuda Limited (the ‘Investment Manager’) may, at its discretion, refuse a subscription or phase a subscription into the Fund over a number of dealing days. The Investment Manager may, at its discretion, limit redemptions to US$5m or 2.5% of the Fund (whichever is less) per dealing day.

Reportable income for UK investors

Click here to view a report which provides the income information relevant for tax reporting should you be liable for tax in the UK.

What are the costs?

All the Africa Equity Fund’s expenses, including the investment management fee, are deducted before performance figures are calculated. There are no separate or additional costs. Since inception, the expenses deducted were:


Investment management fee

View fee breakdown

Benchmark performance

View summary

Out- or underperformance


Other expenses


Total expense ratio (TER)


Transaction costs


Total investment charge

The investment management fee depends on performance


The fee depends on how well the Africa Equity Fund performs against its benchmark.

Min: 0% - Max:  5%

  • The fee consists of a base fee of 1% and a performance component.
  • Each day the Fund’s annualised return for that day is compared to the benchmark, after deducting the base fee. If this return is in line with the benchmark, only the base fee is charged. If not, the fee increases or decreases by 0.2% for each percentage difference.
  • This fee is capped at 5% over any 12-month period.
  • If the Fund fails to achieve benchmark performance, the fee can decrease to 0%. If the fee would have been negative, the negative fee will be carried forward to reduce the next day’s fee (and all subsequent days until the underperformance is recovered).

Related articles

Understanding the risk of loss in Africa ex-SA

By Andrew Lapping on 30 Jun 2014

reading time: 9 mins

A small percentage of the foreign component of our Balanced and Stable Funds is invested in Africa and investors looking for greater exposure to the region c...

The Allan Gray Africa Equity Fund celebrates 15 years

By Andrew Lapping and Nick Ndiritu on 30 Jun 2013

reading time: 9 mins

When the Allan Gray Africa Equity Fund (the Fund) was launched on 1 July 1998 it was the first unitised product in which Allan Gray Proprietary Limited was...

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