Seeing no need to complicate things, the Allan Gray Australia Stable Fund invests predominantly in cash, but looks to outperform the RBA cash rate over the long term by investing up to 50% of the portfolio in the Australian sharemarket.
Allocation to shares is built up when great value is present and reduced when prices are high and value is harder to find. It's as simple as that.
Since inception in July 2011, the fund has returned an annual rate of 6.1% versus the 2% the Reserve Bank of Australia's cash rate has seen as at 31 May 2021.
With a multitude of uses and having outperformed the sharemarket during the five worst market drawdowns since inception, it's an attractive option for those looking to outperform cash simply, without being fully exposed to the sharemarket.
Find out more in the article.