Allan Gray Launches Balanced Fund

ALLAN Gray Namibia has launched the Balanced Fund, that it says is suitable for individuals and non-pension fund clients.

“We want to ease access for the man on the street to quality investment products and service,” says Tapologo Motshubi, managing director of Allan Gray Namibia.

The Fund, which is managed to comply with Regulation 28 of the Namibian Pension Funds Act, is suitable for investors who seek steady, long term capital growth and are comfortable with taking on some risk of market fluctuations and potential capital loss, but typically less than that of a pure equity fund. Investors should have an investment horizon of at least three years.

The Fund is an asset allocation fund, which means the fund manager can invest in a mix of shares, bonds, property, commodities and cash. Also known as ‘solution’ funds, asset allocation funds are often a good choice for investors looking for a well-diversified investment solution.

“Solution funds recognise that it is difficult for the average investor to make asset allocation decisions themselves, and solution funds put these decisions in the hands of the experts,” says Motshubi.

The Fund may invest up to 35% of its assets outside the common monetary area (CMA). The Fund is allowed an additional five percent for investments in Africa, outside the CMA.

“The fund manager can use his discretion to increase or decrease his exposure to certain asset classes or regions depending on where he sees opportunities at any point in time. This gives investors the best chance of achieving long-term returns,” Motshubi notes.

Motshubi acknowledges that the Allan Gray Namibian Balanced Fund is not suitable for everyone and is hoping that soon there will be additional funds made available to interested investors.

Founded in 1996, Allan Gray Namibia has assets under management of approximately N$13,1 billion.

Source : The Namibian