Dimensional just got cheaper…
One of the ways in which we can help is to buy your investments for you at low (institutional) prices. We are also one of a limited number of high quality firms with access to Dimensional Fund Advisers (DFA) funds. DFA is very committed to minimising their investment costs and every time they do so we are able to pass these cost savings onto you, in full, via your Wrap Account.
The table below shows DFA’s expenses falling consistently from 2004 (when they first became available to UK advisers) meaning that the cost of our typical portfolio now stands at only 0.40% p.a. ((the typical UK equity fund has a TER (total expense ratio) of over 1.60% – source: Lipper)).
| Actual TERs for 2004 | Actual TERs for 2005 | Actual TERs for 2006 | Actual TERs for 2007 | Actual TERs for 2008 | Actual TERs for 2009 | Actual TERs for 2010 | Actual TERs for 2011 | Actual TERs for 2012 | |
| UK Core | 0.42% | 0.39% | 0.38% | 0.40% | 0.38% | 0.37% | 0.37% | 0.37% | 0.36% |
| UK Value | 1.27% | 0.89% | 0.65% | 0.60% | 0.59% | 0.60% | 0.59% | 0.57% | 0.54% |
| UK Small | 1.54% | 1.00% | 0.86% | 0.74% | 0.71% | 0.70% | 0.70% | 0.69% | 0.66% |
| International Core | 0.54% | 0.53% | 0.51% | 0.49% | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% |
| International Value | 1.23% | 0.93% | 0.74% | 0.63% | 0.59% | 0.60% | 0.60% | 0.59% | 0.57% |
| Emerging Markets Core | 1.68% | 1.29% | 1.00% | 0.85% | 0.87% | 0.84% | 0.85% | 0.84% | 0.78% |
| Global Short-dated Bond | 0.62% | 0.47% | 0.43% | 0.38% | 0.35% | 0.36% | 0.35% | 0.34% | 0.33% |
*The cost of trading international equities is greater than those in the UK.
Source: Dimensional Fund Advisers.