Dimensional rolls out sustainability targeted value fund

Focused on reducing exposure to companies with high carbon intensity


Dimensional Fund Advisors has launched the Global Sustainability Targeted Value fund.

The offering invests in developed markets equities with a focus on small and mid-cap value stocks.

Its investment universe is comparable to the Global Targeted Value fund, a $4.3bn (£3.5bn) strategy launched in 2008.

The firm aims to target transparent sustainability considerations while maintaining broad diversification, efficient cost management, and higher expected returns. Management fees are 0.40% per annum.

The fund’s sustainability considerations are consistent with Dimensional’s other sustainability funds, which means it has a primary focus on reducing exposure to companies with high carbon intensity and high potential emissions from reserves.

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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 use of child labour, among others. 

This fund is Dimensional’s sixth sustainability fund which now covers whole market equity in developed and emerging markets; core and short-term fixed income; and now global developed small and mid-cap value stocks.

Co-CEO Nathan Lacaze commented: “With Global Sustainability Targeted Value, investors can emphasise their exposure to the size and value premiums in their sustainability allocation.

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“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.”

At the end of September 2023, its assets under management in sustainability funds were around £4bn.

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