Allan Gray - Orbis Global Optimal Fund of Funds

Lower risk exposure to offshore markets

The Allan Gray-Orbis Global Optimal Fund of Funds’ goal is to deliver long-term positive returns higher than foreign currency bank deposits, regardless of stock market conditions. We aim to beat the average of the benchmarks of the underlying unit trusts.

The Global Optimal Fund of Funds is suitable for you if:

  • You want to invest offshore in rands
  • You are looking for steady, long-term capital growth with better returns than foreign cash
  • You are comfortable with currency movements

Performance after fees with all distributions reinvested
as at  30 April 2020 (in rands)

Benchmark: The simple average of the benchmarks of the underlying unit trusts.

Annualised Returns

as at  30 April 2020

This is a way of reporting the return earned over a period as a percentage per year. Although the figure stated implies that the same percentage return was delivered every year, the actual return in each year may have been more or less than the reported figure, depending on the unit trust’s volatility. Annualised performance reporting simplifies comparison across different time periods and across different types of investments.

Risk measures

as at  30 April 2020

 
Maximum drawdown (%)
Highest annual return (%)
Lowest annual return (%)
Fund
-18.9
39.6
-12.4
Benchmark
-26.6
35.6
-19.1

Investment strategy

To achieve the Allan Gray-Orbis Global Optimal Fund of Funds’ goal, we invest in a mix of unit trusts managed by our offshore partner, Orbis Investments. Orbis shares our investment philosophy, which is applied on a global scale. Orbis ignores market sentiment and buys assets its research process indicates are undervalued. Orbis sells them when they reach its estimates of fair value. A portion of the shares is hedged to reduce stock market risk.

The returns come partly from the underlying Orbis unit trusts’ relatively low exposure to stock markets, partly from Orbis’ selected share returns relative to those markets, and partly from foreign currency cash-equivalent returns. The Global Optimal Fund of Funds' currency exposure is actively managed, both within the underlying Orbis unit trusts and through the Orbis unit trusts we choose.

Asset allocation
as at  30 April 2020

Unit Trust Allocation

as at  30 April 2020

What are the costs?

All the Allan Gray-Orbis Global Optimal Fund of Funds' expenses, including the investment management fee charged by Orbis in the underlying Orbis unit trusts, are deducted before performance figures are calculated. There are no separate or additional fees. The total investment charge is broken down below:

1.41%

Orbis investment management fee1

View fee breakdown
1.00%

Benchmark performance4

View summary
+
0.41%

Out- or underperformance5

+
0.07%

Other expenses2

+
0.00%

VAT

=
1.48%

Total expense ratio (TER)3

+
0.13%

Transaction costs

=
1.61%

Total investment charge

1 Investment management fees are charged for the investment manager’s investment research and decision making. 

2 This includes audit fees, taxes and other administration costs.

3 This is a measure of the actual costs that have been deducted from the unit trust over the past three years to 31 March 2020 (annualised).

4 The fee charged for benchmark performance is charged within the underlying Orbis unit trusts for performance equal to the relevant unit trust’s benchmark. 

5 The portion of the Orbis investment management fee that is added or deducted for performance above or below the unit trust's benchmark performance.  

The investment management fee depends on performance

Orbis charges a fee within the underlying Orbis Optimal SA funds, which depends on how well each underlying Orbis fund performs against its benchmark. A portion of this fee is paid to Allan Gray for marketing and distribution and Allan Gray does not charge any additional fees. The fees of the Orbis funds are described in more detail on the Orbis factsheets.

Note: There may be slight discrepancies in the totals due to rounding.

Important information for investors

Collective Investment Schemes in Securities (unit trusts) are generally medium- to long-term investments. The value of units may go down as well as up and past performance is not necessarily a guide to future performance. The Management Company does not provide any guarantee regarding the capital or the performance of its unit trusts. Unit trusts may be closed to new investments at any time in order for them to be managed according to their mandates. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending.

Performance figures are provided by Allan Gray and are for lump sum investments with income distributions reinvested. Actual investor performance may differ as a result of the investment date, the date of reinvestment and dividend withholding tax. Movements in exchange rates may also be the cause of the value of underlying international investments going up or down. Unit trust prices are calculated on a net asset value basis, which is the total market value of all assets in the unit trust including any income accruals and less any permissible deductions from the unit trust, divided by the number of units in issue. Forward pricing is used and fund valuations take place at approximately 16:00 each business day. Purchase and redemption requests must be received by 14:00 each business day to receive that day’s price. Unit trust prices are available daily on our prices page. Permissible deductions may include management fees, brokerage, Securities Transfer Tax (STT), auditor’s fees, bank charges and trustee fees. A schedule of fees, charges and maximum commissions is available on request from the Management Company.

The total expense ratio (TER) is the percentage of the unit trust's average assets under management that has been used to pay the unit trust's operating expenses over the past year. The TER includes the annual management fees that have been charged (both the fee at benchmark and any performance component charged), trading costs (including brokerage, STT, STRATE and FSB Investor Protection Levy), VAT and other expenses. Since unit trust expenses vary, the current TER cannot be used as an indication of future TERs. The unit trust’s performance figures are quoted after the deduction of costs incurred within the unit trust so the TER is not a new cost. A higher TER ratio does not necessarily imply a poor return, nor does a low TER imply a good return. Instead, when investing, the investment objective of the unit trust should be aligned with the investor’s objective and compared against the performance of the unit trust. TERs should then be used to evaluate whether the unit trust performance offers value for money.

While this Fund has been approved for marketing to the public in Botswana, by the Regulatory Authority of Botswana, the Fund is not supervised or licensed in Botswana.  It is a registered collective investment scheme portfolio, registered, approved and regulated by the South African Financial Services Board. The Facilities Agent for the Fund in Botswana is Allan Gray (Botswana) (Proprietary) Limited at Plot 545354, 2nd Floor, Building 2, Central Square, New CBD, Gaborone, Botswana where investors can obtain a trust deed and financial reports. 

In accordance with section 11(i) of the Botswana Income Tax act (Chapter 52; 01), an amount accrued to any person shall be deemed to have accrued from a source situated in Botswana where it has accrued to such person in respect of any investment made outside Botswana by a resident of Botswana; provided that section 11 (i) shall not apply to foreign investment income of non-citizens resident in Botswana. Botswana residents who have invested in the shares of the Fund are therefore required to declare income earned from this Fund when preparing their annual tax returns. 

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