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 Financial Happenings Blog 
Wednesday, August 06 2008

Today we have updated the Building Portfolios page on our website to include Dimensional performance data up to the 30th June 2008.  The data continues to show the premiums for small, value and emerging market trusts over the standard index returns (as reflected by the Large Company Trust performance).

Australian Shares:

The following tables represent the Australian share returns in two ways.  Firstly is the average annual return over 5 years followed by the growth of $10,000 invested over 5 years.  All returns are after Dimensional fees, and returns are to the end of June, 2008.  As you can see the performance of the actual funds show that small companies and value companies, invested in a strategic way, provide a higher return than just the index return ( with the Dimensional Australian Large Company Trust reflecting the index return).

 

Average Annual Returns: 

 

5 Year Annual Return

to End June 2008

Dimensional - Australian Large Company Trust

16.81%

Dimensional - Australian Value Trust

19.49%

Dimensional - Australian Small Company Trust

22.87%

Growth of $10,000 Invested:

 

5 Year Annual Return

to End June 2008

Dimensional - Australian Large Company Trust

$22,359

Dimensional - Australian Value Trust

$24,359

Dimensional - Australian Small Company Trust

$28,005

International Shares:

Within International shares these same sources of return premiums from value and small companies can be found. 

 

There is also an extra sub-category to add to this mix - companies in Emerging Markets.  Emerging Markets are those that are not yet developed but have significant potential for growth.  Consequently they also are riskier and therefore can provide an extra risk premium for an investor who is comfortable to take on this extra risk.  Our preferred fund, Dimensional Emerging Markets Trust, holds shares in companies listed in Argentina, Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Israel, Malaysia, Mexico, Philippines, Poland, South Africa, South Korea, Taiwan, Thailand, and Turkey.

 

While we have not gone into as much detail with our returns data, the three year and five year returns show the value and small company premium over the index (the Dimensional Global Large Company Fund being close to the index return), as well as showing the effectiveness of the Emerging Markets fund.

 

Average Annual Returns:

 

5 Year Annual Return

to End June 2008

Dimensional - Global Large

5.12%

Dimensional - Global Value

9.08%

Dimensional - Global Small

8.60%

Dimensional - Emerging Markets

19.72%

 

Growth of $10,000 Invested:

 

5 Year Annual Return

to End June 2008

Dimensional - Global Large

$12,836

Dimensional - Global Value

$15,443

Dimensional - Global Small

$15,106

Dimensional - Emerging Markets

$24,594

Posted by: Scott Keefer AT 07:00 pm   |  Permalink   |  Email
 
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