Investment decisions require careful consideration, particularly when evaluating fund performance and associated risks. Longleaf Partners stands as a notable entity in the investment landscape, and understanding their fund offerings is crucial for potential investors. It’s essential to approach past performance data with caution, as it is not indicative of future results.
When analyzing the historical performance of Longleaf Partners funds, it’s important to note the inception date and the benchmarks used for comparison. For instance, for funds with an inception date of April 8, 1987, performance calculations might reference the S&P 500 Index from March 31, 1987, due to data availability at that time.
It is also vital to understand that reported returns reflect reinvested capital gains and dividends. However, these returns do not account for taxes that an investor would incur on distributions or share redemptions. Therefore, the actual return experienced by an individual investor may vary. Remember, past performance data is not a predictor of future success. Investment values can fluctuate, meaning that shares, when redeemed, might be worth more or less than their original purchase price. For the most up-to-date performance figures, it is recommended to consult current data, which may be lower or higher than historical figures.
Prior to making any investment decisions regarding Longleaf Partners funds, investors are strongly advised to thoroughly review the Fund’s investment objectives, potential risks, charges, and expenses. Comprehensive details are available in the official Prospectus and Summary Prospectus. These documents are indispensable resources and should be read carefully before investing.
Investing in Longleaf Partners Fund involves inherent risks, including stock market risk. This means fund values can fluctuate based on company-specific developments, broader market trends, and overall economic conditions. Furthermore, the Longleaf Partners Fund typically invests in a concentrated portfolio of 15 to 25 companies. This focused approach, while potentially offering higher returns, can also lead to greater share value volatility compared to more diversified funds. Investments in mid-cap stocks, which may be part of the Longleaf Partners Fund portfolio, can exhibit higher volatility than stocks of larger, more established companies.
Investors should also be aware of the expense ratio associated with the Longleaf Partners Fund. The total expense ratio is 1.05% (gross) and 0.79% (net). Southeastern Asset Management, the investment advisor for Longleaf Partners, has contractually committed to limit operating expenses to 0.79% of average net assets annually, excluding certain items. This agreement is currently in effect until at least April 30, 2025, and any termination before this date requires Board approval.
Increasingly, Environmental, Social, and Governance (ESG) factors are considered in investment strategies. Longleaf Partners may incorporate sustainable investing principles, which could lead to the Fund forgoing potentially profitable opportunities that do not align with ESG criteria. This approach might, in some instances, result in the Fund underperforming compared to funds that do not integrate ESG considerations into their investment process.
It’s important to acknowledge trademarks and intellectual property. S&P 500® is a registered trademark of The McGraw-Hill Companies, Inc., and its mention in the context of Longleaf Partners funds is for benchmark comparison purposes only.
