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Dimensional Fund Advisors Fee Reduction – Announcement
Finzo is pleased to announce that Dimensional Fund Advisers Ltd (DFA) have reduced the management fees for a few wholesale trusts, including the ones listed below and used by Finzo clients; the updated fee is effective 1 July 2024.
Since partnering with Dimensional in 2003, we’ve consistently witnessed their commitment to passing on the benefits of growth and economies of scale to clients. Their focus on reducing costs while maintaining a robust, evidence-based investment approach highlights their dedication to delivering long-term value.
The recent fee reduction further demonstrates their ongoing efforts to evaluate and adjust management fees, ensuring clients benefit from the firm’s growth and efficiency gains.
The table below shows the significant differences in management fees for some of the Trusts over the long term:
1 The 30/06/2002 figure represents the actual management expense ratio (%) for 12 months to 30/06/2002.
2 The Five-Year Diversified Fixed Interest Trust figure in 30/06/2002 is annualised. The Trust initially launched as the Diversified Fixed Interest Trust and was only available as AUD hedged.
3 In 30 June 2002, the Global Value Trust, Global Large Company Trust, Global Small Company Trust, and Emerging Markets Trust invested in relevant US registered investment vehicles managed by Dimensional Inc..
4 Prior to 2 August 2021, the Dimensional Emerging Markets Value Trust was known as the Dimensional Emerging Markets Trust. From 28 October 2009, the Emerging Markets Trust changed its investment objective and strategy from purchasing securities of large companies, to purchasing securities of value companies on a market-wide basis. Data for periods prior to the transition date are for the large cap strategy.
We are hopeful you will agree that the new fee schedule provides the opportunity to offer your clients a highly effective investment solutions at extremely competitive rates.
A PowerPoint slide is being created for client review meetings to share the recent and long-term reductions.
If you have any questions or comments, don't hesitate to contact us at support@finzo.co.nz