Allan Gray Endowment

If your marginal income tax rate is higher than 30% and you want to benefit from tax savings, you can use an endowment for your long-term savings goals. It is also a useful product for estate planning purposes.

Your investment is into your choice of unit trusts.

Watch a 51sec video explaining what an endowment is

Watch now
You get tax benefits
Tax benefits

The income tax rate in an endowment is fixed at 30%, which means that if your income tax rate is more than 30%, your returns will be taxed at a lower rate.

Endowement
Use an endowment for estate planning

Your beneficiaries can receive your investment immediately and there are no executor's fees.

Reasons an endowment may not be suitable for you

  • If your income is taxed at less than 30%, you will be taxed more in an endowment than in a plain unit trust investment.
  • During the first five years of your investment, known as the restriction period, you may only make one withdrawal. However, when you are not in a restriction period, you may withdraw from your investment at any time, or schedule regular withdrawals.
  • Your five-year restriction period may be extended if you invest more over one year than 120% of your investments over either of the past two years.

Need to know more? See our frequently asked questions about investing via an endowment

Learn more

Choose a unit trust that suits your needs

Your investment returns come from the unit trusts you choose. When choosing a unit trust, there is a trade-off between higher potential return on the one hand, and stability and lower risk on the other.

Higher risk & return
Stability & lower risk
Allan Gray Equity Fund

Potential for higher long-term return, with more significant fluctuation that could last for many years.

Allan Gray Balanced Fund

Our flagship long-term unit trust. Steady long-term return with moderate fluctuation.

Allan Gray Stable Fund

Less fluctuation with above-inflation return. There may be some fluctuation within a two-year period.

Allan Gray Money Market Fund

Most stability with higher return than bank deposits. May not beat inflation over time but is suitable for short-term needs.

The Allan Gray Equity Fund

Our equity-only unit trust for very long-term investing
Suitable for you if:
  • You want to invest in listed shares for long-term capital growth
  • You are comfortable with significant stock market movement
  • You accept the possibility of losing capital
  • You have at least five years to invest, but preferably longer
View risk and performance
Why is this important?
View detailed information
Invest now

Can you tolerate significant ups and downs?

You must be prepared to wait out years in which you may experience performance that may be significantly better, or significantly worse, than in a balanced fund. It is important that you are able to remain invested after a drop, to give your investment time to recover.  

Look at the long-term return 

Returns go up and down, but you can benefit if you have enough time to wait

If you have the time and the patience to leave your money invested despite dramatic and long-lasting ups and downs, the Equity Fund has the potential to deliver higher long-term return.

To really understand how much an investment has grown over time, it’s important to look at return after inflation.

The Allan Gray Balanced Fund

Our flagship long-term unit trust
Suitable for you if:
  • You are looking for steady, long-term capital growth
  • You are ideally investing for at least three years
  • You are comfortable with taking on some risk of market fluctuation and potential capital loss
  • You wish to invest in a unit trust that complies with legal investment limits for retirement funds
View risk and performance
Why is this important?
View detailed information
Invest now

Your one-year returns may test you

Over any year you may experience good performance, or things may go the other way and your investment could lose value. It’s important to prepare yourself for what you could experience while you are invested.

Look at the long-term return.

Returns go up and down, but you can benefit over the long term

Our Balanced Fund aims to deliver steady growth over time. You can benefit if you are able to wait out the short-term ups and downs.

To fully understand how much an investment has grown over time, it’s important to look at return after inflation.

The Allan Gray Stable Fund

Lower fluctuation for short- to medium-term access
Suitable for you if:
  • You are risk-averse and want to prioritise protecting your capital
  • You are ideally investing for at least two years
  • You want to achieve returns better than inflation, but are comfortable with lower potential return over time than you might earn in a unit trust that takes on more risk
  • You are comfortable with some market fluctuation within a two-year period
  • You want a unit trust that complies with legal investment limits for retirement funds.
View risk and performance
Why is this important?
View detailed information
Invest now

Benefit from less significant ups and downs than the Balanced Fund

The Stable Fund aims to protect your investment over any two years. Over a year you may still experience ups and downs, but these are likely to be less significant than what you might experience in the Balanced Fund.

Look at the long-term return. 

You must be comfortable with lower return over time

If you are investing for the long term, you must be comfortable with lower return than you might earn in a balanced fund.

To fully understand how much an investment has grown over time, it’s important to look at return after inflation.

The Allan Gray Money Market Fund

Preservation and accessibility over the very short term
Suitable for you if:
  • You need a high level of stability and you seek higher returns than bank deposits
  • You only want to invest for about one year
View performance and risk
Why is this important?
View detailed information
Invest now

Your one-year returns are stable

The Money Market Fund is suitable for investment for a year or less. The ups and downs are far less significant than a balanced fund. You can access your money when you need to, without worrying about whether your investment has lost value.

Look at the long-term return

To give an indication of the ups and downs you may experience in a balanced fund, we show the average return of similar unit trusts. 

The Money Market Fund is not suitable for long-term investing

The Money Market Fund aims to deliver higher return than bank deposits. But if you are investing for the long term, you must be comfortable with significantly lower return than you might earn in a balanced fund.

 To understand how much an investment has grown over time, it’s important to look at  return after inflation.

Other unit trust options

If you would like offshore exposure, you can invest in the Allan Gray-Orbis rand-denominated offshore unit trusts. These are listed in the “local unit trusts” section on our Latest prices, factsheets and performance page.

We also have specialist unit trusts (the Allan Gray SA Equity Fund, the Allan Gray Bond Fund and the Allan Gray Optimal Fund), which may be more suitable for experienced investors who are comfortable building their own investment portfolio.

If you want to include diversification in your investment strategy, you may also want to invest in unit trusts from other investment managers.

Send me an SMS when the rand-based unit trusts are open again for a basic unit trust investment
* Mandatory Field
Note:

You will receive an SMS whenever the unit trusts re-open and subsequently close again. You can unsubscribe from these alerts at any time by contacting our Client Service Centre via phone or email.

Select a site

The financial services, products or investments referred to on this website are not available to persons resident in jurisdictions where their availability or distribution would contravene local laws or regulations and the information on this website is not intended for use by these persons. This website is for information only and does not in any way constitute a solicitation or offer by Allan Gray Proprietary Limited or any of its associates or subsidiaries (collectively “Allan Gray”) to buy or sell any financial instruments or to provide any investment advice or service.

By selecting one of the countries below I confirm that I have read and understood the above and that:

(a) I am not a South African citizen; or 
(b) I do not reside in the Republic of South Africa; or 
(c) I am not otherwise a person to whom the communication of the information contained in this website is prohibited by the laws of my home jurisdiction; and 
(d) I am not acting for the benefit of any such persons mentioned in (a),(b) and (c) and 
(e) I confirm that any investment with Allan Gray is based on my own initiative and not due to any offer or solicitation by Allan Gray.

Australia Namibia Botswana South Africa