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Portfolio Information

Investment objective

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.

Fact Sheet

APIR CodeETL4654AU
Management fees and costs (Base fee) 0.76%*
Performance fee20.3%*
Inception date1 March 2017
Buy / Sell spread0.20% / 0.20%
Distribution frequencyAnnual
Minimum suggested investment timeMore than 3 years
Fund size as at 31/12/2024 AUD 204.33 million

Performance
Top 5 Holdings
Asset Allocation
Geographical Allocation
Prices
Distributions

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Period:

Information as at:

	1 month %	3 months %	1 year %	3 years % p.a	5 years % p.a	Since public launch % p.a (1 March 2017)
Balanced Fund	(1.9)	0.7	14.6	9.5	7.8	7.8
Benchmark	(0.1)	3.1	12.6	4.9	6.1	7.5
Relative Performance	(1.8)	(2.4)	2.0	4.6	1.7	0.3

Relative highest and lowest annual return since public launch	Return %	Calendar year
Highest
Lowest

Notes

The chart shows the value of AUD 10,000 invested in the Fund and in the benchmark over the selected period. The public launch date of the Fund was 1 March 2017. The benchmark is a blend of the S&P/ASX 300 Accumulation Index (36%), S&P Australian Government Bond Index (24%), MSCI World Index with net dividends reinvested, expressed in AUD (24%) and JP Morgan Global Government Bond Index, expressed in AUD (16%). Returns are net of fees, include income, assume reinvestment of distributions and exclude any spreads that might be payable on transactions. Returns for periods of more than one year are annualised. Annualised returns show the average amount earned on an investment in the Fund each year over the given time period. The highest and lowest returns earned during a calendar year since the public launch of the Fund are shown to demonstrate the variability of returns. The complete return history for the Fund can be obtained by contacting our Client Services team. Past performance is not indicative of future performance. Fund prices will fluctuate and there is no guarantee with respect to the performance of the Fund or that an investor’s capital will be preserved. The actual performance experienced by investors may differ as a result of the specific investment date, the date of reinvestment of income distributions, and withholding tax applied to income distributions. The minimum initial lump sum investment amount is $10,000.

*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.

Security Name	Description	% of Fund as at 31/12/2024
Australian Gov. Bonds < 1 Year	Australian Gov. Bonds < 1 Year	17%
SPDR® Gold Trust	SPDR® Gold Trust is an exchange-traded fund (ETF) which aims to track the value of gold bullion. Backed by physical gold, the ETF was the first product of its kind in the US and is one of the largest globally.	6%
Kinder Morgan	Kinder Morgan is an American energy infrastructure company. Kinder Morgan owns and operates one of the largest oil, natural gas, and refined petroleum pipeline networks in the US.	3%
US TIPS 1 - 3 Years	US TIPS 1 - 3 Years	3%
Woodside Energy Group	Woodside Energy Group is an Australia-based global energy company operating across oil, gas, and new energy.	3%

Geographical Allocation Date as at 31/12/2024

%	Australia	North America	Europe and UK	Asia	Other	Total
Net Equity	23	9	13	9	3	56
Hedged Equity	-	7	2	1	-	9
Fixed Income and Cash	17	10	2	-	-	30
Commodity Investments	-	-	-	-	-	6
Total	40	26	17	9	3	95

This table highlights the Fund’s exposure to regions. Net equity is calculated by taking into account the exchange-traded derivatives used to reduce market exposure. The geographical region of a security is generally based on the region allocated to that security by third-party data providers for comparability purposes. As exchange rate fluctuations can have a significant impact on returns, the Fund uses over-the-counter derivatives such as currency forwards to manage foreign exchange risk. Commodity Investments are not specifically allocated to a geographical region.

Hedged Equity represents the Fund's use of exchange-traded derivatives to reduce market exposure. Commodity Investments reflect the Fund's indirect investment in commodites like gold, through commodity-linked instruments or unlisted shares.

Prices

	Current Price 10/10/2023	Month-end Price 30/09/2023	Select Date
Buy
Sell
Net Asset Value (NAV)

All prices are net of distributions and fees. Buy price is the Fund’s NAV per unit plus the buy/entry spread. The sell price is the Fund’s NAV per unit less the sell/exit spread.

Distributions

Declaration date	Record date	Payment date	AUD per unit	Ex-distribution price

Balanced Fund

Our Balanced Fund is designed to leverage our contrarian approach across equities and fixed income, depending on where we see opportunities, to drive long-term returns.

Your portfolio may benefit from a unique Balanced Fund with a wide mandate that gives us the flexibility to go against the consensus to drive results.

Why choose the Allan Gray Australia Balanced Fund?

Time-tested contrarian investment philosophy

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.

A strong foundation

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.

Expertise

This Fund combines Allan Gray Australia’s domestic specialisation with Orbis Investment’s global markets expertise.

Performance driven with the flexibility to adapt

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.

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Speak to our Client Services team

To learn more about our Funds, please do not hesitate to contact us directly by phone or email.

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Investment management fees at a glance

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.

History of total fees and costs

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%

Risks of Investing

All investments carry risk. If you are considering the Allan Gray Australia Balanced Fund, you should be aware that:

There is no guarantee your investment will do well
We do not guarantee the success, repayment of capital or any rate of return on income, capital or investment performance of the Fund. Past performance is not an indicator of future performance.

Markets can be volatile
The Fund will primarily hold Australian and international shares and bonds. As these investments can be volatile, your investment will fluctuate. In addition, some of the markets in which the Fund invests may be considered emerging markets, which carry their own risks such as political and social instability.

Currency movements will impact performance
Although a large portion of the Fund will be held in Australian assets, fluctuations in exchange rates can have a significant influence on the Fund’s international investments and could impact overall returns.

You can find a comprehensive explanation of the risks in the Product Disclosure Statement (PDS), which should be read together with the Information Booklet and our Target Market Determinations, all of which can be found on our Forms and Documents page.