It is with great sadness that I pay tribute to Gillian Gray, who passed away in December. I was fortunate to have spent time with Gill over the years and witness first-hand her kindness, selflessness and generosity. She operated behind the scenes, acting as a partner to Allan in all philanthropic efforts from the early days through to the development of Allan & Gill Gray Foundation. Gill quietly inspired us all to always consider the needs of those less fortunate – and to act on making a difference in people’s lives. Her legacy lives on through her efforts.
Investing should not be a guessing game
I write this as we near the end of January, and there has been no shortage of news flow to rattle the markets, with all eyes closely watching newly inaugurated US President Donald Trump, particularly his focus on migration, energy and trade tariffs. But political moves are notoriously difficult to predict, and the economy and the markets do not always respond as expected. Rather than trying to play a guessing game, a better solution is to invest in a fund that is well placed to deliver returns in multiple scenarios. We believe the Allan Gray Balanced Fund is a great option for most investors.
… we are proud of our long-term track record and our continued focus on fulfilling the Balanced Fund’s goal of growing and protecting investors’ capital.
When we launched the Balanced Fund back in October 1999, we aimed to offer retail investors a unit trust that could deliver long-term real returns – but at lower levels of risk than peers. While acknowledging that past performance does not guarantee future outcomes, we are proud of our long-term track record and our continued focus on fulfilling the Balanced Fund’s goal of growing and protecting investors’ capital. Nick Curtin’s analysis offers some proof points.
Investment philosophy in action
Our investment team works tirelessly to invest your savings to enable you to achieve your long-term goals. This quarter’s investment articles will give you a detailed idea of how we go about making investment decisions.
In his article, Jithen Pillay looks at a subset of global players in the personal luxury goods market that seem to have lost their investment shine. As you know, we are not put off by diamonds in the rough, and we are finding the investment proposition for select names in this sector very interesting at present.
In another illustration of the execution of our investment philosophy and how we think about risk and opportunity, Rory Kutisker-Jacobson discusses the long-term investment case for frontier markets. Rory explains why, over the long term, these more obscure markets present opportunities that have the potential to be extremely rewarding.
The end of the tax year is an opportune time to check in on your financial plan and maximise the tax benefits …
As you are aware, we share our investment philosophy with our offshore partner, Orbis. In his president’s letter, Adam Karr notes that whether it’s deregulation, shifting geopolitical alliances or technological leaps, moments such as where we find ourselves currently create winners and losers. Like Allan Gray, Orbis doesn’t spend attention trying to predict what will happen next in the news; rather, they take the time to understand the terrain and adapt and invest wisely, guided by fundamental analysis. Adam reflects on 2024 and shares insights into Orbis’ approach and processes.
Maximise tax benefits this February
The end of the tax year is an opportune time to check in on your financial plan and maximise the tax benefits offered through retirement funds and tax-free investments. Carla Rossouw and Lee Kotze provide a reminder of these tax incentives that government has put in place to encourage investing towards long-term goals via these products. In addition, they discuss some of the factors to consider before making withdrawals.
Earn inflation-beating returns
In this quarter’s Investing Tutorial, Twanji Kalula draws our attention to lifestyle creep, which, simply put, is the increase in our expenditure as we earn more money. When we think about our goal of achieving inflation-beating returns, we must make sure that we also account for lifestyle creep as it adds additional pressure to the amount we need to accumulate to cover our future expenses.
All the best for 2025
2024 was the great election year, with more than half of the world’s population voting. This year, we are warily watching the outcomes of the decisions made. To get a good sense of the current investment context, watch the latest investment update from our chief investment officer, Duncan Artus, available via our website, and remember to subscribe to the Allan Gray Podcast for investment insights.
With risk remaining heightened around the world, it is easy to get distracted. I wish you all the best for the year ahead and encourage you to remain focused on your long-term investment goals.
Explore more insights from our Q4 2024 Quarterly Commentary:
- Paying tribute to Gillian Gray by Craig Bodenstab
- Diamonds in the rough: A look at luxury by Jithen Pillay
- Where investors fear to fish by Rory Kutisker-Jacobson
- Orbis: President’s letter 2024 by Adam R. Karr
- In safe hands with the Allan Gray Balanced Fund by Nick Curtin
- How to maximise tax benefits in a two-pot era by Carla Rossouw and Lee Kotze
- How to keep the lid on lifestyle creep by Twanji Kalula
To view our latest Quarterly Commentary or browse previous editions, click here.