The Allan & Gill Gray Foundation is designed to ensure control remains in the hands of the family and its senior executives in order to free it from “the short term pressures that third-party ownership can bring”, the company’s founder said in a letter to clients.
The foundation plans to use the dividends from its controlling shareholdings in the two companies exclusively for philanthropy.
“To ensure that control will remain indefinitely in the hands of those who best exemplify the ethos that has served our clients so well in the past, the newly established Allan & Gill Gray Foundation has been endowed with our family’s controlling interests in the Orbis and Allan Gray groups,” Allan W B Gray said in the letter.
Shared convictions
“We believe it is absolutely essential for the firms’ owners and key decision-makers to share the conviction necessary to stand behind our investment philosophy.
“The perpetual nature of the Foundation empowers the executives to focus entirely on doing what is in the best long-term interests of clients, free from the short-term pressures that third-party ownership can bring. Indeed, all employees can be secure in knowing that nothing will change in this regard after the firms’ founders pass on,” he said.
The company said the move would have no impact on client investments.
The new Allan & Gill Gray Foundation is also separate to the Allan Gray Orbis Foundation, founded over 10 years ago, which provides education scholarships to high potential scholars and students.
The investment management firm Allan Gray manages $35bn (£24bn, €32bn) in client assets in a range of equity, fixed interest and multi-asset mandates across Africa. Orbis Investment Management is the Bermuda-based international investment arm.
