Growth triggers fee reductions in DFA funds

In response to outstanding growth in their core mutual fund business, one of our top mutual fund managers, Dimensional Fund Advisors (aka DFA Funds) have announced a decrease in the underlying fund operating costs. Additionally, DFA remains competitive in a crowded industry of investment professionals who continue to copy and model DFA’s very successful and academic approach to focus on investing in areas that promote excess returns (i.e. market premiums) over plain vanilla index investing.

Dimensional will reduce management fees across 33 equity mutual funds, representing a 15% reduction on an asset-weighted basis for the impacted funds. For a full list of the changes, please refer to the table below. The fee reduction will go into effect February 28, 2021.

“For nearly forty years, Dimensional has refined, enhanced and advanced its investment solutions, systems and processes and sought to pass those efficiencies and benefits back to clients,” said Gerard O’Reilly, Co-Chief Executive Officer and Chief Investment Officer. “With the further enhancement of our Mutual Fund offering, expansion of our separately managed accounts program, and impending launch of our ETFs, we plan to continue to deliver a consistent philosophy, experience and result within an expanding solution set.”

Dimensional has a track record of regularly reviewing and reducing fees for the benefit of clients and investors, which has led to many reductions throughout the firm’s history.

“We want to empower financial professionals so they can make the best decision for those they serve,” said Dave Butler, Co-Chief Executive Officer. “The evolution and growth of our investment offering, priced by strategy rather than product wrapper, keeps the focus where it should be – on the investment engine and giving financial professionals more flexibility and choice.”

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