Understanding what you are actually invested in

When you consider investing, there are many platforms and funds to choose from. While the platform you use is important, it is just as important to understand where your money is actually invested.

This is where a fund factsheet becomes a valuable tool.

A fund factsheet provides a snapshot of the fund and gives you insight into its “character” – how it is structured, what it aims to achieve, how it has performed and what risks and costs are involved.

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What can you learn from a fund factsheet?

A factsheet can help you understand how your investment is allocated across different asset classes, such as:

• Equities – shares in companies
• Bonds – interest-bearing investments
• Property
• Cash and money market investments
• Commodities

For example, the Allan Gray Balanced Fund invests across a combination of shares, bonds, property, commodities and cash, with the ability to invest offshore. As at 30 June 2026, the fund had 66.9% net equities, 16.3% bonds, 5.9% money market and cash, 2.2% commodity-linked investments and 0.9% property, with additional exposure through hedged equities.

This allocation gives you a much clearer picture of the type of investment you hold and the level of exposure it has to different markets.

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Look at the fund’s objective

Every fund has an investment objective.

This tells you what the fund is trying to achieve and helps you determine whether it aligns with your own investment goals and time horizon.

The Allan Gray Balanced Fund, for example, aims to create long-term wealth while operating within retirement fund investment limits. It seeks to outperform the average return of similar funds without taking on more risk than those funds.

The fund is generally suited to investors seeking steady long-term capital growth who are comfortable with some market fluctuation and typically have an investment horizon of more than three years.

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Fund size matters – but context is important –

A factsheet also provides information about the size of the fund.

As at 30 June 2026, the Allan Gray Balanced Fund had a fund size of R254.8 billion.

Fund size can provide useful context about the scale of the investment portfolio. However, it should not be viewed on its own as an indication that a fund is better or more successful. It should be considered alongside the fund's objective, strategy, performance, risk and costs.

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Performance: look beyond one year

One of the most useful sections of a factsheet is the performance history.

The Allan Gray Balanced Fund's annualised return as at 30 June 2026 was:

• 15.0% since inception
• 9.6% over the latest 10 years
• 13.8% over the latest 5 years
• 14.8% over the latest 3 years
• 15.2% over the latest 1 year

But performance should always be viewed in context. Past performance is not a guarantee of future performance, and investments can fall as well as rise in value.

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Understand the costs

Your factsheet also gives you insight into the costs associated with managing the fund.

The Total Expense Ratio (TER) provides a summary of the actual expenses incurred by the fund. For the Allan Gray Balanced Fund, the one-year TER to 30 June 2026 was 1.78%, while transaction costs were 0.07%, resulting in a total investment charge of 1.85%.

Importantly, the factsheet explains that TER and transaction costs should not simply be viewed in isolation. They should be considered together with the fund's objectives and performance when assessing whether the investment offers value for money.

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Knowledge gives you confidence

Understanding your fund can help you become a more informed and patient investor.

Markets will move. Some years will be stronger than others, and periods of underperformance are a normal part of long-term investing.

Knowing what you own, why you own it, how it is invested and what it costs can give you greater insight into the investment process.

A fund factsheet is therefore much more than a collection of numbers – it is a useful starting point for understanding the character, strategy, risk and potential of your investment.