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What’s New In Investments, Funds? – Dimensional, Asset Value Investors

Editorial Staff 1 December 2023

What’s New In Investments, Funds? – Dimensional, Asset Value Investors

The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Texas-based private investment firm Dimensional Fund Advisor has llaunched a Global Sustainability Targeted Value Fund which invests in developed markets equities with a focus on small and mid-cap value stocks. Its investment universe is comparable with the Global Targeted Value Fund, a $4.3 billion fund launched in 2008, the firm said in a statement.

Global Sustainability Targeted Value also employs Dimensional’s approach of targeting transparent sustainability considerations while maintaining broad diversification, efficient cost management, and aiming on higher expected returns, the firm continued. Management fees are 0.40 per cent per annum.

The fund’s sustainability considerations are consistent with Dimensional’s other sustainability funds, which aim to reduce exposure to companies with high carbon intensity and high potential emissions from reserves. It also excludes companies involved in certain industries, such as coal, palm oil or tobacco, and those engaged in controversial activities such as factory farming or the using child labour, among others. 

This fund is Dimensional’s sixth sustainability fund which now covers core (whole market) equity in developed and emerging markets; core and short-term fixed income; and global developed small- and mid-cap value stocks. Dimensional has been managing sustainability funds for European investors for over 10 years.

“With Global Sustainability Targeted Value, investors can emphasise their exposure to the size and value premiums in their sustainability allocation. Combining this new fund with our sustainability core equity funds allows investors to customise according to their own risk tolerance their exposure to securities with higher expected returns,” co-CEO Nathan Lacaze said. Dimensional, which has offices in the US, Europe and Asia, is a global investment firm that has been translating academic research into practical investment solutions since 1981.

Asset Value Investors
Global equity investor, Asset Value Investors (AVI), is planning to launch two open-ended UCITS funds, which mirror its existing Global and Japanese equity strategies. 

Both funds will utilise AVI’s bottom-up, research-driven approach and experience to engage with companies to unlock hidden value and drive shareholder returns, the firm said in a statement.

The Global strategy, launched in 1985, since renamed as AVI Global Trust (AGT) - manages £1.1billion ($1.4 billion) of assets. The Japanese strategy was strengthened by the launch of AVI Japan Opportunity Trust (AJOT) in 2018 and has grown to £180 million.

The new undertakings for the collective investment in transferable securities (UCITS) funds, which are regulated at European level, will be managed by AVI’s CEO & CIO, Joe Bauernfreund, supported by AVI’s research team. Goodhart will be the strategic partner in the marketing and distribution of the new UCITS funds, the firm added.

Joe Bauernfreund CEO and CIO, said: “After decades of ever lower interest rates we are firmly in a different regime, with higher rates and quantitative tightening presenting a challenge for equities generally.”

“We believe the baton is being passed firmly back to stock pickers. It is an opportunity rich environment and one where engagement and a focus on investments with explicit catalysts will be key levers to drive absolute and relative returns. Discounts haven’t been this attractive since 2008,” he continued.

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