Dimensional Fund Advisors has launched a discretionary managed portfolio service (MPS).
All models in the MPS will only use Dimensional’s funds.
There are 12 allocation options ranging from 100% equity to 100% fixed income in 20% increments, available via Transact.
Six are ‘core models’ with modest outperformance expectations. The other six are ‘core plus models’ and target a higher outperformance, with a higher tracking error against the market.
The MPS fee is 0.06% in addition to the underlying funds’ ongoing charges.
Dimensional said the models capture its “latest and most advanced thinking” on the integration of financial theory, research and implementation.
Nathan Lacaze, co-CEO, said: “Successful systematic investing requires expertise across a spectrum of financial disciplines.
“We target outperformance through a combination of research-led strategy design and decades of experience in implementation that we don’t think can be replicated.”
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Martyn Chappell, head of wealth management in the UK and Ireland, said: “Dimensional has supported clients with model portfolio construction for many years.
“Our managed portfolio service is the next phase, offering financial professionals the complete solution: investment philosophy, portfolio design, daily implementation, asset allocation and rebalancing.
“On top of that, investors who adopt the MPS become part of the Dimensional community and benefit from the spectrum of business strategy and communications support offered under the Dimensional 360 service proposition.”
