Allan Gray’s Orbis Global Equity Feeder Fund’s top 10 shareholdings include British American Tobacco, Google, BMW, and Interactive Brokers.
The Allan Gray Orbis Global Equity Feeder Fund’s goal is to create wealth for investors by investing in global stock markets.
A feeder fund is an investment fund which makes most of its investments through a master fund via a master-feeder relationship.
In this case, the Allan Gray Orbis Global Equity Feeder Fund invests only in the Orbis Global Equity Fund.
The Orbis Global Equity Fund is managed by Allan Gray’s offshore investment partner, Orbis Investment Management Limited.
The Orbis Global Equity Fund is designed to be exposed to all of the risks and rewards of selected global shares.
The fund aims to outperform global stock markets over the long term without taking on greater risk. Its benchmark is the FTSE World Index, including income.
The bad news for Allan Gray Orbis Global Equity Feeder Fund investors is that it failed to outperform its benchmark.
Since its inception on 1 April 2005, the Allan Gray fund achieved an annualised return of 13.9% in rands, lower than the FTSE World Index’s 14.1%.
Over the last five years, Allan Gray only achieved an annualised return of 9.2%, much lower than its benchmark’s 15.0%.
Therefore, investors would have been better off investing in a world index ETF rather than Allan Gray’s Orbis Global Equity Feeder Fund.
Top shares in Allan Gray’s Orbis Global Equity Feeder Fund
The Allan Gray Orbis Global Equity Feeder Fund’s latest fact sheet revealed the top 10 shareholdings on 31 January 2023.
The top 10 shares, which include British American Tobacco, Google, and BMW, accounted for 34.0% of the fund’s value.
|Company||Percentage of portfolio|
|British American Tobacco||4.5%|
|Sumitomo Mitsui Fin.||4.1%|
|KB Financial Group||2.8%|
|Interactive Brokers Group||2.4%|
|Bayerische Motoren Werke||2.3%|