HEAD-TO-HEAD: Dimensional versus Ninety One

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Louise Liu, Oreana Portfolio Advisory Services

Introduction

The Blackrock Investment Institute (BII) recently warned its clients about a “near-term headwind” for US equity markets, caused by the potential for higher US taxes, coupled with regulatory risks and shifting growth momentum, which “tempers our near-term enthusiasm for U.S. equities”.

Instead, the BII sees equities in other developed markets as better positioned to capture the economic restart over the tactical horizon, as the powerful post-pandemic economic recovery broadens, and highlights how business activity in the Euro area surged in June.

Meanwhile, Pinebridge Investments – along with several global asset managers in their mid-year outlooks — expect higher returns in Asia ex-Japan equities compared with other developed equities in the next 12 months. In particular, the firm is overweight China and South Korea markets, predicated on a confidence in tech-related sectors.

At the same time, the so-called “value rotation” continues to find support. However, investors should look beyond the labels of “growth” and “value” by taking a disciplined yet flexible approach to find discounts in different types of companies and market conditions, warns Franklin Templeton.

Against this background, FSA asked Louise Liu, investment strategist, and Florence Savage, investment analyst at Oreana Portfolio Advisory Services to select two global equity products for comparison: the Dimensional Global Core Equity Fund and the Ninety One Global Strategic Equity Fund.

Source: FE Fundinfo, Morningstar. (Data in US dollars, 30 June 2021)

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