july 2006 70 year old male r458 000 invested in allan gray living annuity 30% into allan gray...
TRANSCRIPT
July 2006
70 year old male
R458 000 Invested in Allan Gray Living Annuity
30% intoAllan Gray Balanced Fund
Income drawn:7% per year
Actual investor example
40% intoAllan Gray Equity Fund
30% intoAllan Gray Stable Fund
Actual investor example
21 December 200644% in Balanced56% in Equity
12 October 2007100% in Equity
11 February 2008100% in Money Market
26 May 200861% in Equity39% in Money Market
9 October 2008100% in Money Market
21 July 200947% in Balanced53% in Equity
22 April 201025% in Balanced75% in Equity
5 July 2006Initial investment40% in Equity30% in Balanced30%in Stable
Source: Inet Bridge
28 November 201123% in Balanced77% in Equity
28 November 2011
His actual portfolio
Allan Gray Balanced Fund 23%R104 520
Total R447 640
Actual investor example
Allan Gray Equity Fund 77%R343 120
Allan Gray Balanced Fund 29.9%R152 126
Total R508 436
Allan Gray Equity Fund 42.0%R213 383
Allan Gray Stable Fund 28.1%R142 927
If he kept the original asset allocation and done nothing through the whole period his
portfolio would be
13.6% higher portfolio
28 November 2011
His actual portfolio
Total R447 640
Actual investor example
Allan Gray Balanced FundR500 198
11.7% Higher
Allan Gray Equity FundR535 510
19.6% Higher
Allan Gray Stable FundR461 641
3.1% Higher
If he invested the entire initial lump sum into any one of the Equity, Balanced or Stable funds, his investment account would have been