Allan Gray Australia was the distributor of Allan Gray Solutions, but the products were operated and administered by OneVue, a subsidiary of Iress.
“It is with great regret that we are writing to tell you of the difficult decision we have made to exit Allan Gray Solutions (which includes Allan Gray Superannuation and Retirement and Allan Gray Investments) to focus on our core funds management business,” Allan Gray chief operating officer Johan De Lange said.
“We understand that this may be disappointing for you and we can assure you that this is not a decision that we have taken lightly.”
In a letter to investors, De Lange said operating its platform business had become untenable in the current operating environment.
“While we were proud to be able to bring our competitive Allan Gray Solutions to you, it has become clear that we simply cannot deliver this sustainably and to our standards of service and administration under our current arrangement in the ever-demanding regulatory environment,” he said.
The fund manager launched its superannuation, investments and retirement solutions business in 2018.
The platform would remain open to existing clients and new business, for transacting and additional contributions, and Allan Gray would continue to service clients until completion of the transition. Thereafter, the platform would be operated by OneVue under a new name and brand.
This is excellent news. Too many good niche fund managers have lost focus, by trying to grow through diversification. Magellan was a classic recent example, and Vanguard sadly looks to be headed down that road too.