Bought a Global Fund

Yesterday I bought some units in James O'Shaughnessy’s global fund (RBF594). I purchased it for the following reasons:

1. He has a long, proven track record as a manager.
2. I think American and Canadian markets are getting expensive and I wanted some global exposure.
3. He has a disciplined approach to investing (which I like)

Here are some highlights of the fund and his investing style:
•Provides exposure to 50 growth, 50 value and 50 blend securities within North American, European and Asian markets-it may also invest up to 20% of its assets in emerging markets
•Maintains a focus on selecting securities with the best potential, wherever they are located (the fund is not bound by country or sector lines)
•Only invests in securities meeting rigorous quantitative criteria (based on a combination of value and growth measures)
•Does not hedge currency exposure.

If you are interested here is a link to his fund info:

http://www.rbcam.com/RBC:RcCIgI71A8UAA8hYW-c/news/oshaughnessy-funds-global-equity.html

(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice

Mutual Funds

Ok I’ve received a few emails about mutual funds so I just thought that I’d share my general thoughts on them. Ok investment advisors plug your ears. In general I think mutual funds are a total waste of money (2% to 3% MER makes a huge difference in the long run) additionally I don’t think that 95% of the fund managers out there are any better than a savvy amateur (because of the amount of money they have to move). I can’t remember the exact stat (and I’m too lazy to look it up) but I seem to remember that it was something like 80% of fund managers don’t beat the market.

That being said there are a few situations that I personally would buy a mutual fund.

1. If I think the fund manager is smarter than me.
2. If I want exposure to a very risky area (ie- biotech)
3. If I want exposure to a market that I don’t follow (ie-outside of North America)

Two of my favorite managers are Francis Chou and James O'Shaughnessy. I’m currently taking a hard look at O'Shaughnessy’s global fund and will probably make a purchase in the near future.