Zenith was informed late last night of Managing Director and Portfolio Manager of Allan Gray Australia, Simon Marais’ passing. Marais had reduced his day-to-day investing responsibilities in October 2014, leaving Simon Mawhinney as the sole portfolio manager of the Allan Gray Australia Equity Fund. Mawhinney had been the sole portfolio manager of the Allan Gray Australia Opportunity Fund since its inception.
Zenith previously downgraded the Allan Gray Australia Equity Fund from HIGHLY RECOMMENDED to RECOMMENDED in October 2014.
After holding further conversions with Allan Gray today, Zenith has elected to reaffirm RECOMMENDED ratings on both funds.
Zenith’s View
Although Zenith believes Marais is a big loss for the funds and the firm, we retain confidence in the investment capabilities of the team, now led by Mawhinney, who we believe to be a strong contrarian investor.
Zenith will continue to monitor the situation closely.
Affected Funds:
– Allan Gray Australia Equity Fund (ETL0060AU) – RECOMMENDED
– Allan Gray Australia Opportunity Fund (ETL0273AU) – RECOMMENDED
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