Dimensional Fund Advisors, an institutional investment manager with more than $445 billion under management as of 9/30/16, has announced a reduction in expense caps and investment management fees for several funds in 2017. The majority of these funds are long-term holdings used within True Wealth Design client portfolios and were already low cost compared to other funds in similar categories. Clients will benefit even more from these lower fees.
Dimensional periodically evaluates investment management fees and overall expense ratios. We are please to see Dimensional pass these savings — an average 20% reduction — along to clients as economies of scale have continued to be realized.
Ten Funds have lower management fees and nine of those funds also have lower expense caps. While the reductions in investment management fees will be effective on February 28, 2017, when new prospectuses are filed, the expense cap reductions were effective January 1, 2017.
Management Fee and Expense Cap Reductions
|Portfolio Name||New Mgt. Fee||Current Mgt. Fee||New Expense Cap||Current Net Expense Ratio1|
|Emerging Markets Core Equity Portfolio||0.47%||0.55%||0.54%||0.62%|
|Emerging Markets Portfolio2||0.42%||0.50%||0.49%||0.57%3|
|Emerging Markets Social Core Equity Portfolio||0.47%||0.55%||0.57%||0.65%|
|International Core Equity Portfolio||0.27%||0.35%||0.30%||0.38%|
|International Social Core Equity Portfolio||0.29%||0.37%||0.38%||0.46%|
|International Sustainability Core 1 Portfolio||0.30%||0.42%||0.38%||0.42%4|
|T.A. World Ex U.S. Core Equity Portfolio||0.32%||0.40%||0.39%||0.45%|
|World Ex U.S. Core Equity Portfolio||0.32%||0.40%||0.39%||0.47%|
|Large Cap International Portfolio||0.20%||0.25%||0.24%||0.29%|
|U.S. Sustainability Core 1 Portfolio5||0.23%||0.29%||N/A||0.25%|