Allan Gray Money Market Fund
Higher yields with low risk from South Africa's largest independent asset manager
The Allan Gray Money Market Fund aims to provide a higher yield than traditional bank deposits while preserving your capital. With returns around 9.2% p.a., it's a popular choice for conservative investors.
Allan Gray is South Africa's largest privately-owned asset manager with over R900 billion under management. Their money market fund invests in high-quality short-term debt instruments, offering stability with better returns than typical savings accounts.
Quick Facts
Current Yield
~9.2%
Variable, after fees
Annual Fee
0.29%
Total expense ratio
Min Investment
R20,000
Lump sum
Key Features
Higher Yields
Consistently outperforms bank savings accounts and call deposits while maintaining capital stability.
Low Risk Profile
Invests in high-quality, short-term instruments like bank deposits, treasury bills, and corporate paper with strong credit ratings.
Daily Interest Accrual
Interest is calculated daily and paid monthly, so your money works from day one.
Quick Access
Withdraw your money within 2-3 business days. No fixed terms or penalties.
Professional Management
Managed by Allan Gray's experienced fixed income team with a disciplined investment process.
Regulation 28 Compliant
Can be used within retirement products as part of a balanced portfolio.
Historical Performance
| Period | Return | Benchmark |
|---|---|---|
| 1 Year | 9.2% | 8.8% (STeFI) |
| 3 Years (ann.) | 7.4% | 7.0% (STeFI) |
| 5 Years (ann.) | 6.8% | 6.4% (STeFI) |
| Since Inception (2001) | 8.3% | 7.8% (STeFI) |
* Past performance is not indicative of future returns. Returns are after fees. STeFI = Short Term Fixed Interest benchmark.
Fees & Costs
| Fee Type | Amount |
|---|---|
| Total Expense Ratio (TER) | 0.29% p.a. |
| Transaction Costs | 0.00% |
| Initial Fee | None |
| Exit Fee | None |
| Total Investment Charge | 0.29% p.a. |
* Fees are deducted from the fund daily and reflected in the unit price. The yield quoted is already after fees.
Example: What Could Your Money Earn?
Here's an example of R100,000 invested at the current yield of ~9.2% p.a.:
After 1 Year
After 3 Years
After 5 Years
* Assumes constant 9.2% return with interest reinvested. Actual returns will vary. Interest is taxable unless held in a tax-free wrapper.
Investment Minimums
Lump Sum Investment
Minimum initial investment
Additional investments: R500 minimum
Debit Order
Minimum per month
Great for regular saving
How to Invest
Create an Allan Gray Account
Register online at allangray.co.za. You'll need your ID, tax number, and banking details.
Complete FICA Verification
Upload your ID, proof of residence, and complete the verification process online.
Select Money Market Fund
Choose the Money Market Fund from their fund list. Decide between lump sum or debit order.
Transfer Funds
EFT your investment to Allan Gray's account with your reference number, or set up a debit order.
Pros and Cons
Pros
- Higher yields than bank deposits
- Low risk, stable returns
- Very low fees (0.29%)
- No entry or exit fees
- Reputable fund manager
- Long track record since 2001
Cons
- R20,000 minimum (high barrier)
- Not capital guaranteed
- Interest is taxable
- 2-3 day withdrawal period
- May not beat inflation long-term
Important Information
- • Allan Gray is a licensed Financial Services Provider (FSP 9).
- • Unit trusts are not guaranteed - the value can go down as well as up (rare for money market but possible).
- • Interest earned is subject to income tax unless held in a tax-free savings account.
- • Past performance is not a guarantee of future returns.
Frequently Asked Questions
Is my money safe in a money market fund?
Money market funds invest in very low-risk instruments and have never lost money for investors in SA. However, unlike bank deposits, they're not capital guaranteed. The risk is extremely low but not zero.
How do I access my money?
Submit a withdrawal request via your Allan Gray online account. Funds are typically paid within 2-3 business days directly to your bank account.
Can I invest via my tax-free savings?
Yes! Allan Gray offers a Tax-Free Investment Account where you can hold this and other funds. This makes your returns completely tax-free within the annual R36,000 limit.
What's the difference vs a savings account?
Money market funds typically offer higher yields because they invest in instruments with slightly higher returns. The trade-off is no capital guarantee and a short withdrawal delay (vs instant access at banks).