Allan Gray (investment management company)

Last updated
Allan Gray
Founded1973;51 years ago (1973)
Founder Allan W.B Gray
Area served
South Africa, Namibia and Botswana
Key people
Mahesh Cooper (Chief Operating Officer), Duncan Artus (Chief Investment Officer), Ian Liddle (Chairman)
ProductsRetail unit trust products, Retirement products, Institutional segregated and pooled products
AUM R322.5 billion (31 December, 2021)
Website https://www.allangray.co.za

Allan Gray is an investment management firm headquartered in South Africa, established with the objective of offering a range of investment solutions. [1] In addition to its primary location, the firm has expanded its operations to include offices in Botswana, Namibia, and Eswatini, reflecting its broader geographic reach within the region. It also works in collaboration with sister companies, Orbis Investment Management and Allan Gray Australia, to leverage global investment insights and strategies. Allan Gray caters to a diverse clientele, which encompasses both institutional and individual investors, along with insurance companies, trusts, foundations, and foreign institutions. This diverse client base is indicative of the firm's comprehensive service offering, designed to meet a variety of investment needs.

Contents

History

Allan Gray Investment Counsel was established in October 1973 by Allan W.B. Gray, securing its first client the following year. [1] To expand its global investment capabilities, the founder initiated Orbis Investment Management in 1989, focusing on international investment opportunities. [2] The company underwent a rebranding in 1992, adopting the name Allan Gray Limited. [3]

Continuing its expansion, Allan Gray Limited inaugurated its first international office in Windhoek, Namibia, in 1996. [4] Two years later, in 1998, the company broadened its product offering to include retail investment options, catering to a wider range of investors. [5] Further extending its presence in the region, the firm opened an office in Gaborone, Botswana, in 2004. [6]

Operations

Allan Gray conducts its investment operations across the African continent, managing a diverse portfolio of assets. The firm has a workforce of over 1,000 employees, indicating its significant scale and capacity for comprehensive investment management services. Its main office is located in the Silo District of the V&A Waterfront in Cape Town, a notable area for its blend of commercial and cultural spaces. [3] The primary building, known as Silo One, distinguishes itself as the first in South Africa to achieve a six-star green rating from the Green Building Council of South Africa. This certification underscores Allan Gray's commitment to sustainability and environmental responsibility in its operational practices. [5] The location and design of its headquarters reflect the company's emphasis on integrating environmental considerations into its business model, alongside its investment activities.

Investment offering

Allan Gray provides a variety of investment products designed to meet the needs of retail investors, including a selection of unit trusts. The firm's current portfolio for retail investors encompasses unit trust investments, tax-free savings accounts, opportunities for offshore investments, retirement annuities, preservation funds, living annuities, and endowment policies. [4]

For institutional investors, the company offers investment opportunities in unit trusts, life pooled portfolios, and segregated portfolios. These options are tailored to suit the varying requirements of different types of institutions and the scale of their investments.

Additionally, Allan Gray facilitates group savings plans for employers seeking retirement savings solutions for their employees. This is achieved through the Allan Gray Umbrella Retirement Fund and the Allan Gray Group Retirement Annuity, designed to assist in the provision of retirement benefits.

Social investment

Allan Gray participates in social investments primarily through the Allan Gray Orbis Foundation and E Squared, which are dedicated to the education and financial support of emerging entrepreneurs. The foundation receives an annual donation calculated as 5% of the pre-tax profits from Allan Gray Proprietary Limited, along with a $150 million endowment from Allan W.B. Gray. [5] Additionally, E Squared holds a 20% stake in Allan Gray Limited, a structure intended to allocate resources towards entrepreneurial development and education.

These efforts are aligned with Allan Gray's commitment to contributing to the economic empowerment of communities by supporting entrepreneurial initiatives. The company's involvement in these programs reflects an approach to social responsibility focused on creating opportunities for new business leaders and innovators. [6]

Ownership

A controlling interest in Allan Gray is held in perpetuity by Allan & Gill Gray Foundation. Other shareholders include past and present employees and E Squared. Allan & Gill Gray Foundation is designed to exist in perpetuity to ensure that the distributable profits are ultimately devoted exclusively to philanthropy and to promote the commercial success, continuity and independence of the Allan Gray business. [7]

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References

  1. 1 2 Nsehe, Mfonobong. "The 10 Greatest Living Business Leaders In Africa Today". Forbes.
  2. ↑ Shari, Michael. "A Top African Hedge Fund Is Buying Markets Others Are Deserting". Barrons.
  3. 1 2 "SA's brightest green stars are honoured". Green Building Council SA. Archived from the original on 2018-01-14. Retrieved 2015-09-14.
  4. 1 2 "All investment options". Allan Gray. Retrieved 11 November 2022.
  5. 1 2 3 "Foundation Partners". Allan Gray Orbis Foundation. Archived from the original on 2015-08-01. Retrieved 2015-09-14.
  6. 1 2 Nsehe, Mfonobong. "Five Notable African Philanthropists". Forbes.
  7. ↑ "Transforming our business" (PDF). allangray.co.za. 2022. Retrieved 18 October 2022.
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