Investing in any fund requires careful consideration, and the Longleaf Partners Fund is no exception. Before you decide if it aligns with your financial goals, it’s crucial to understand its key aspects, including performance history, potential risks, and how it operates. This overview provides essential information to help you get started.
The Longleaf Partners Fund officially began on April 8, 1987. For performance tracking in its initial year, due to data limitations with the S&P 500 Index being available only at month-end, the index value from March 31, 1987, was used as a benchmark for calculations since the fund’s inception. It’s important to remember that past performance, while informative, is not indicative of future results. Investment values can fluctuate, meaning that when you redeem your shares, they may be worth more or less than what you initially invested. For the most up-to-date performance figures, it’s advisable to consult recent fund data, as current performance may differ from historical returns.
Investing in the Longleaf Partners Fund, like all investments, comes with inherent risks. As a stock market-dependent fund, its value can be influenced by company-specific developments, broader market trends, and overall economic conditions. Furthermore, the fund typically invests in a concentrated portfolio of 15 to 25 companies. This focused approach can lead to greater share value volatility compared to more diversified funds holding a larger number of securities. The fund’s holdings in mid-cap stocks can also introduce additional volatility, as these stocks may be more sensitive to market fluctuations than those of larger, more established companies. In terms of expenses, the Longleaf Partners Fund has a total expense ratio of 1.05% (gross) and 0.79% (net). Southeastern Asset Management has contractually agreed to limit operating expenses to 0.79% of average net assets annually, a commitment that is currently in place until at least April 30, 2025, and requires Board approval for early termination.
Finally, it’s important to note that Longleaf Partners Fund may consider Environmental, Social, and Governance (ESG) factors in its investment strategy. Sustainable investing or ESG considerations might lead the Fund to forgo potentially profitable opportunities that don’t align with its ESG criteria. This approach could potentially result in the fund underperforming compared to funds that do not take ESG factors into account.
Disclaimer: Before making any investment decisions regarding the Longleaf Partners Fund, it is imperative that you thoroughly review the Fund’s prospectus and summary prospectus. These documents contain detailed information about the fund’s investment objectives, risks, charges, and expenses. Carefully reading the Prospectus and Summary Prospectus is essential for making informed investment choices.
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