The Allan Gray Global Fund of Funds (a rand-denominated offshore fund investing in the Orbis funds with the balance invested in the Allan Gray Money Market Fund) no longer has a fixed fee. The fixed fee of 1.25% per annum excluding VAT has been reduced to 0%. The only fees that will be charged on the Fund are those of the underlying Orbis funds, a portion of which is rebated to Allan Gray. The fee reduction can be attributed mainly to the fact that traditionally, Allan Gray has not been a proponent of many layers of fees (predominantly found in fund of funds). Given that the Fund invests only in Orbis funds, the assets remain in the broader Allan Gray group thus providing an opportunity to reduce the fee. In line with its new balanced mandate, the Fund has a more conservative benchmark and it was felt that the existing fee levels are not sustainable. The benchmark of the Fund is 60% of the FTSE World Index and 40% of the JP Morgan Government Bond Index Global.

The fund invests in a balanced portfolio of equity and absolute return funds. Currently, the fund is underweight global equities as certain major stockmarkets (and especially the USA) are considered to be expensive. Within equities, the fund is very overweight Japan and very underweight the USA. After a prolonged bear market, Japanese equities are considered to offer the prospect of superior long-term returns. US equities on the other hand, while below their April 2000 peak valuations, are still generally trading well above intrinsic value.