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Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
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 Financial Happenings Blog 
Monday, January 12 2009

Users of our website, through our User Voice feedback forum, have requested that we regularly update the graphs outlining the performance of the Dimensional trusts that we use in building portfolios for clients.  In response to this feedback we have updated these graphs to reflect performance up to the end of December 2008.

 

Commentary:

 

The graphs show slight growth in monthly returns over December for the Australian Small & Value segments of the market along with Emerging Markets in the global arena.  The Australian Large Company return for December (as measured by the ASX 200) was flat with Global Small, Global Value and Global Large companies (as measured by the MSCI World Ex Australia Index) retreating in value.

 

Over the long run, the graphs continue to clearly show the existence of the risk premiums (small, value and emerging markets) that the research tells us should exist:

 

Australian Share Trusts - 7 Year returns

 

 

7 Yr Return

to Dec 2008

Premium over ASX 200

Accumulation Index

ASX 200 Accumulation Index

8.36%

-

Dimensional Australian Value Trust

11.55%

3.19%

Dimensional Australian Small Company Trust

12.82%

3.46%

 

International Share Trusts - 7 Year returns

 

 

7 Yr Return

to Dec 2008

Premium over MSCI World (ex Australia) Index

MSCI World (ex Australia) Index

-2.04%

-

Dimensional Global Value Trust

0.60%

2.64%

Dimensional Global Small Company Trust

2.42%

4.46%

Dimensional Emerging Markets Trust

9.71%

11.75%

NB - These premiums are higher than what we would expect going forward.

 

Please click on the following link to be taken to the graphs - Dimensional Fund Performance Graphs.

 

For anyone new to our website, it is important to point out that we build investment portfolios for clients based on the best available academic research.  Take a look at our Building Portfolios and Our Research Based Approach pages for more details.  In our view, this research compels us to use the three factor model developed by Fama and French.  In Australia, the most effective method of investing using this model is through trusts implemented by Dimensional Fund Advisors (www.dimensional.com.au).  We do not receive any form of commission or payment from Dimensional for using their trusts.  We use them because they provide the returns clients are entitled to from share markets.

 

However, academic theory is nothing if it can not be implemented and provide the returns that are promised by the research.  Therefore, we like to provide the historical returns of the funds that we use to build investment portfolios.

 

Please let us know if you have any feedback regarding these graphs by using the Request for More Information form to the right or via our User Voice feedback forum.

 

Regards,

Scott Keefer

Posted by: Scott Keefer AT 11:24 pm   |  Permalink   |  Email
 
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