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I have enjoyed reading Jim Roger's books, and his commodity index seems to do better than the other indexes, but I was put off investing in his fund because the fees seemed to be very high--a huge load. (I think the fees for sums over 250k or maybe 500k were more reasonable) The PIMCO commodity index fund was a lot cheaper. Anyway, I came across an article in the Frankfurter Allgemein recently about a Rogers Index tracking fund based in Switzerland and the fees were OK, about 1% p/a, but it is not open to US citizens. Is there now another way to invest in his index, or have the fees come down?
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Whitethroat,

The Rogers fund fees are actually quite low, IMHO. It came last week to a flat 3% for up to $250k and then 1.1% ongoing, but keep in mind that you also earn interest income on T-bill so this offsets the fees and they are actually lower than this. For the best index fund around with appropriate weights for global commodity usuage and based on someone who has an unbelievable commodities track record, I think it doesn't get any better. Refco is now the main distributor.

-AeroFool
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Hello AeroFool,

If the bull market in commodities continues, as it seems likely to do so, one would not mind the 3% load over the long term. I am planning to increase my own commodities investment which is in the PIMCO fund, although I would prefer to own the Rogers Fund since I am a big Rogers fan. I will compare the results of each again; I had the impression that they were about the same, once you figure in the load. (The PIMCO fund usually performs a good bit better than its commodity index because they use a TIP portfolio as collateral for the commodity options, so it does not work merely to compare the indices. Also it has a large yield, which can be good or bad depending on the tax situation.)

I was surprised to see that the Rogers fund for Europeans has no load and lower management fees, since it is my impression that Europeans, and esp. Germans, often get a worse deal on financial service products than Americans. When I was getting the Rogers info from Uhlman Price Sec. I was not bowled over by their front office, and it is possible that Refco will do a better job. Perhaps the fees will come down too. I assume that is why the Rogers Fund has stayed smallish, while the PIMCO fund has several billion in assets.

Whitethroat
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I have electronic copies of the following Rogers Fund documents:

Prospectus 10 04 05.pdf
(877K)

Brochure - Oct 2005 (2).pdf
(1326K)

Rogers Public Fund - Performance Update Aug 05.pdf
(200K )

Rogers Int'l Raw Materials Fund L P Factsheet - August 2005.pdf
(32K)

Send me an e-mail address (see the "E-Mail this Reply to the Author" option below the free text field when replying to this post) and I'll forward you any/all of the above.
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Hi Whitethroat,

The one time up front fee is 3% as you stated. You also earn T-Bill interest which brings the ongoing yearly down from 1.1% to really about .25%. I also agree with you on preferring to own the Rogers fund and I believe his weightings is much better than anyone else's.

Refco is out and UP is back in. Of course you can use one of dozens upon dozens of brokers for the same Roger's product at the exact same fees. The guy at UP I have been dealing with is excellent. E-mail me privately if you want his contact info. I'm looking to buy in this month, if the new subscription docs with the lower fees ever actually get printed in time.

This is the public fund we are talking about which is only 1/3 full so far. Just 100 million. The institutional/private fund is a min. of $1 million to get in and I'm sure that pension funds will start piling in there eventually.

all the best,
-AeroFool
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A little late for the conversation, but...

Exactly how is this fund purchased? Do you buy shares on an exchange, like stocks, ETFs, and mutuals, or sold on a commodity exchange?

Any info you could give me would be appreciated. I've never dipped my toe into the commodity "pool" yet, due to the risky nature, but this investment seems a lot more risk-manageable and might be a good asset class to add to an index portfolio.

-$$$
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You need to contact Uhlmann Price Securities and get a prospectus. It's a private partnership and not publically traded.

Here are some links:

http://www.rogersrawmaterials.com/

https://www.upsecurities.com/investor/
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Hello $$$,

I posted some info in this thread that you may find useful:

http://boards.fool.com/Message.asp?mid=23566762&sort=whole#23568831

best,
-AF
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Thanks, both of you for your responses. I filled out the info request with UP and am waiting for a response from them.

I think that I am more interested with the Ag side of commodities, as it's pretty easy to play the Oil/Energy and Metals sides. This makes me less interested in DBC but I also am looking forward to new commodity ETFs.

Are these best held in a sheltered account? It seems like they would be...

-$$$
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No prob $$$. I have a guy that I have dealt with at UP who is excellent. I'll email you his info offline and you can give him a call directly if you want. While I haven't invested with them, he impressed me with his knowledge and manner.

best,
-AeroFool
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