The Bettr Blog

Dimensional reduce its fund management charges

May 6, 2020 | Dimensional, Investing, Low cost, Low cost investing

One of the key areas in which Brett Investment tries to add value is by being cost-conscious on your behalf. Since 2007, we have been aligned with partner enterprises with the same values and beliefs… that costs do matter. I am therefore delighted to announce that the annual cost of your portfolio has been slashed by up to 18%.

In spite of the current economic uncertainty Dimensional (DFA) has stuck to its principles and has yet again reduced its fund managements charges.

As a consequence your portfolio ongoing charges figure (OCF) have been reduced as follows:

Dimensional - Ongoing Charges Figure

Costs matter

Whether you’re buying a car or selecting an investment strategy, the costs you pay has a material impact on the net returns you actually receive as an investor.

People rely on a lot of different information about costs to help inform these decisions. When you buy a car, for example, the list price indicates approximately how much you can expect to pay for the car itself. But the costs of car ownership do not end there. Taxes, insurance, fuel, routine maintenance, and unexpected repairs are also important considerations in the overall cost of a car. Some of these costs are easily observed, while others are more difficult to assess.

Ongoing Charges Figure (OCF)

Just like buying and running a car mutual funds have many costs, all of which affect the net return to investors. One easily observable cost is the OCF.

Dimensional’s belief is that every cost saving is worth fighting for and with $450 Billion of funds under management DFA has huge negotiating strength.  Where others feel compelled to buy and sell, DFA can take its time and keep its costs low.  For nearly four decades, Dimensional has developed its trading infrastructure to make this possible. The result: performance is driven by a potent combination of evidence based  investment philosophy and thrifty trading power.

*Dimensional funds are distributed to investors only through approved fee-only advisors.  Brett Investment has been an approved advisor since 2007.  DFA is considered to be one of the top fund families around.

Disclaimer: This document is intended for informational purposes and no action should be taken or refrained from being taken as a consequence of it without consulting a suitably qualified and regulated person.  It does not constitute financial advice under the terms of the Financial Services and Markets Act 2000. It is not an offer to sell, or a solicitation of an offer to buy, the instruments described in this.

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than its original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.