HEAD-TO-HEAD: Dimensional versus Ninety One

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Conclusion

Morningstar has awarded the Dimensional product four stars based on historical returns, and with a silver analyst rating. The firm also gives the Ninety One fund four stars, but a forward-looking analyst rating of bronze.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the Dimensional fund two crowns and the Ninety One product one crown.

“We are impressed with the Dimensional fund’s diversified strategy, strong returns and low fees,” said Liu.

It consists of around over 7,600 holdings with a tilt towards smaller, cheaper, and more-profitable companies, and the weighting approach limits turnover. Transactions are executed efficiently, with the application of well-resourced software technology by skilled traders, according to Savage. The fees are also among the lowest compared with its peers.

“With all these features, we can expect the fund to continue producing superior risk-adjusted returns,” said Liu.

The Ninety One fund is a strong global-equity offering as a result of its veteran, its considerable analytical resources, and consistent approach, based on Investec’s 4Factor quantitative model.

“The approach combines the objectivity of the 4Factor model with fundamental analysis conducted by the analyst team, and Breedon himself adds value to the model,” said Liu.

“Investors have been rewarded with strong and generally consistent performance over the long term, but we have a preference for the Dimensional product,” she concluded.

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