The Microsoft tycoon is betting on little-known inflation funds. Should you?
Of course Bill Gates has more money than God and he probably he is buying everything but Microsoft stock. I do find it curious what his investment manager is buying
now, Western Asset Clay/ US Treasury Inflation Protected Fund.
The Fund’s investment objective is to provide current income. Capital appreciation, when consistent with current income, is a secondary investment objective. Under normal market conditions, the Fund will invest at least 80% of its total assets in inflation-linked securities and at least 60% of its total managed assets in U.S. TIPS. The Fund may also invest up to 40% of its total managed assets in non-U.S. dollar investments, which gives the Fund flexibility to invest up to 40% of its total managed assets in non-U.S. dollar inflation-linked securities (no more than 20% of it’s non-U.S. dollar exposure may be unhedged). The Fund will continue its policy of not investing in bonds below investment-grade quality at the time of purchase. The Fund currently expects that the average effective duration of its portfolio will range between zero and 15 years, although this target duration may change from time to time. There can be no assurance that the Fund will achieve its investment objectives. Gates has been losing money on this for years.