Posted inHead To Head

HEAD-TO-HEAD: Dimensional versus Ninety One

FSA compares two global equity products: the Dimensional Global Core Equity Fund and the Ninety One Global Strategic Equity Fund.
by Rupert Walker

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Fees

Fund research firm Morningstar pays a lot of attention to management charges and expenses, and share classes that charge excessive fees are typically assigned lower ratings.

The ongoing charges figure (OCF) for the retail share class of the Dimensional fund is only 0.26%, and ranks in its Morningstar category’s cheapest quintile. The research firm believes that it will be able to deliver positive alpha relative to the category benchmark index, explaining its Morningstar analyst rating of silver.

“The fees are the equivalent to those charged by ETFs,” said Savage.

The OCF for the more conventionally-managed Ninety One fund is 1.90%, close to the median for the international equity sector, according to FE Fundinfo.

“Investors benefit from both a manager overlay and quantitative analysis, which generates alpha,” said Savage.

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