Allan Gray Money Market Fund 2026 Review
One of South Africa's largest unit trust money market funds — currently yielding 7.25% nominal / 7.49% effective (30 April 2026 fact sheet), with a TER of just 0.29%. Strong fit for emergency-fund pots above R20,000 where you want a higher yield than a bank call account with T+1 liquidity.
Money market funds are NOT deposit-insured. Unlike bank fixed deposits and savings accounts, unit trust money market funds (Allan Gray, Coronation, Nedgroup, STANLIB) are not covered by the Corporation for Deposit Insurance (CODI). The fund is regulated under CISCA and managed for capital preservation through diversification, but the statutory protection is different from a bank deposit. Worth knowing before allocating significant pots.
Current yield
7.25% nominal
Effective annual
7.49%
TER
0.29%
Minimum lump
R20,000
Minimum debit order
R500/month
Liquidity
T+1
What is the Allan Gray Money Market Fund?
A unit trust classified by ASISA as "South African – Interest Bearing – SA Money Market" — meaning it invests exclusively in short-dated (weighted average duration ≤90 days) money market instruments: NCDs, Treasury Bills, commercial paper and bank deposits. Benchmark is the Alexforbes STeFI 3-month Index.
Allan Gray launched the fund in 1995 and it has consistently sat among the largest SA money market funds by AUM. The Class A retail share class charges a 0.25% management fee (ex-VAT) for a total TER of 0.29%. Distributions are declared monthly; interest is taxable for individual investors at marginal rates (subject to the R23,800 / R34,500 SARS interest exemption).
Liquidity is T+1 — submit a redemption today, money in your bank account next business day. No notice period, no early-withdrawal penalty, constant unit price targeting 100c.
Current yield and fees (30 April 2026 fact sheet)
- • Nominal yield: 7.25% per annum
- • Effective annual yield (gross): 7.49%
- • TER (Total Expense Ratio): 0.29%
- • Transaction costs: 0.00%
- • Total Investment Charge: 0.29%
- • Management fee: 0.25% (excl. VAT)
Yields reflect short-dated SA money market instruments and move with the SARB repo rate (currently 6.75%, held at the 20 March 2026 MPC). Expect yields to drift roughly 50–75 basis points above repo over time. Source: Allan Gray Money Market Fund fact sheet, 30 April 2026.
Peer comparison — SA money market funds
| Fund | Yield | TER | Min | ASISA class |
|---|---|---|---|---|
| Allan Gray Money Market (A) | 7.25% | 0.29% | R20,000 | SA IB SA Money Market |
| Coronation Money Market (A) | 7.06% | ~0.50% | R100,000 | SA IB SA Money Market |
| Coronation Strategic Income (P) | 7.16% | ~0.85% | R5,000 | SA Multi-Asset Income |
| Nedgroup Money Market (R) | 7.28% | ~0.55% | R10,000 | SA IB SA Money Market |
| STANLIB Money Market (R) | ~8.07% (Sep 25 print) | ~0.55–0.60% | R5,000 | SA IB SA Money Market |
| Old Mutual Money Market | (req. fact sheet) | (req. fact sheet) | (req. fact sheet) | SA IB SA Money Market |
Coronation Strategic Income is intentionally listed alongside money market funds for comparison, but technically sits in the "SA Multi-Asset Income" ASISA category. It uses short-dated bonds and floaters in addition to money market instruments and typically yields 50–150 bps more, with T+2/T+3 settlement instead of T+1.
Money market fund vs bank deposit alternatives
| Vehicle | Yield | Protection | Liquidity |
|---|---|---|---|
| Allan Gray Money Market | 7.25% nominal / 7.49% eff | Not CODI-protected (unit trust) | T+1 |
| Bank call / instant-access savings (top) | ~6.95% (FNB Money Maximiser, R1m+) | CODI up to R100k | Same-day |
| African Bank 90-day notice (R250k+) | 7.26% | CODI up to R100k | 90 days |
| TymeBank 12-month Fixed Deposit | 8.75% nominal | CODI up to R100k | Locked 12 months |
| Coronation Strategic Income | 7.16% TTM | Not CODI-protected (unit trust) | T+2/T+3 |
| RSA Retail Savings Bond (5y) | ~9.46% | Direct Treasury credit | Locked 5y |
Allan Gray Tax-Free Investment Account (TFIA)
The Allan Gray TFIA is a tax-free wrapper that can hold the Money Market Fund, Stable, Balanced, Equity, Optimal, plus AG offshore feeders and a curated third-party list per the March 2026 fund list.
- • Annual contribution cap (2026/27): R46,000 (up from R36,000 on 1 March 2026)
- • Lifetime cap: R500,000
- • Allan Gray admin fee: up to 0.50% on first R1m, 0.20% next R2m, 0.10% next R7m, 0.075% over R10m (ex-VAT)
- • Minimum: R46,000 lump-sum, OR R2,000 lump plus R2,000/month debit order
- • 40% SARS penalty on excess contributions (unchanged)
Key features
Frequently asked questions
What is the current Allan Gray Money Market Fund yield in 2026? +
Is the Allan Gray Money Market Fund safe? +
Money market fund vs bank fixed deposit — which is better? +
What is the minimum to open an Allan Gray Money Market Fund? +
What's the difference between a money market fund and Coronation Strategic Income? +
Should I hold money market in a Tax-Free Savings Account? +
Important
This article is for information only and is not financial advice. Investments can go down as well as up — past performance is not a guide to future returns. Consider speaking to an FSCA-authorised financial advisor before investing.