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I came across a new fund that is rather interesting – Barclays Investment Legend Fund. The fund invests in companies and funds operated by today’s top investors – or the investment legends:
Warren Buffett – Berkshire Hathaway
Jim Rogers – Rogers International Commodity Index
Bill Gross – PIMCO
Ian Cumming and Joseph Steinberg – Leucadia National Corp
Mark Mobius – Templeton Emerging Markets Fund
Who would invest in this fund?
I think the potential investors are the ones who believe in investing only with the best in the world. A ‘if you can’t beat them, join them’ mentality. It is indeed not a bad idea afterall since many of the retail investors do not know much about investing, and leaving the task to the experts would give them better returns.
Another advantage is diversification of risk among the experts. What do I mean? The experts selected are experts in different asset classes, and at any one time with a particular economic condition, some asset classes will perform better than others. Hence, investors should have at least one expert performing at any one time to lead the portfolio.
If you fancy Warren Buffett’s Berkshire Hathaway and you do not have enough money to own 1 share (around US$130,000), your chance to own a piece of it can be realised through this fund.
Fund Details
From the prospectus, “The investment objective of the Fund is to provide Shareholders with long term capital appreciation by investing in the Investment Legends Portfolio (see composition below), which reflects the performance of a diversified asset pool including investments in various asset classes, such as equities, commodities and fixed income assets.”
The fund invests in 3 asset classes but not more than 60% in any one of the classes:
- Equities
- Commodities
- Fixed Income
Initial portfolio composition:
Equity (40%):
1) Berkshire Hathaway Inc. – 10%
2) BlackRock Inc. – 10%
3) Leucadia National Corp – 10%
4) Templeton Emerging Market Fund – 10%
Commodities (40%):
1) Derivative contracts tracking RICI (Rogers International Commodities Index) – 40%
Fixed Income (20%):
1) PIMCO Total Return Bond Fund – 20%
Sales charge – 5%
Management fee – 1.5%
Fixed fee – 0.2% max
Prospectus available here.
Please be reminded this is not an invitation to invest and readers should seek professional advice.
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