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 Financial Happenings Blog 
Tuesday, September 08 2009

Since our last edition we have updated the Dimensional Fund Performance Graphs page on our website.  The graphs show the performance of the Dimensional funds that we use to build investment portfolios for our clients.  They have been updated to contain data up until the end of July 2009.
 
Commentary:
 

The graphs show strong monthly returns over the month for the Australian share asset classes and Emerging Markets with international share investments relatively flat.
 
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 July 2009

Premium over ASX 200

Accumulation Index

ASX 200 Accumulation Index

10.61%

-

Dimensional Australian Value Trust

13.50%

2.89%

Dimensional Australian Small Company Trust

15.06%

4.45%


International Share Trusts - 7 Year returns:

 

7 Yr Return

to July 2009

Premium over MSCI World (ex Australia) Index

MSCI World (ex Australia) Index

0.01%

-

Dimensional Global Value Trust

1.92%

1.91%

Dimensional Global Small Company Trust

3.46%

3.45%

Dimensional Emerging Markets Trust

13.04%

13.03%


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.dfaau.com).  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.

Posted by: AT 09:15 am   |  Permalink   |  Email
 
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