Fund Rationale: Dimensional Pacific Basin Small Companies Fund

Dimensional Pacific Basin Small Companies Fund (the "Fund")
SGD Institutional Class Accumulation Shares (ISIN: IE00BG85LH23)
Fund Manager Page
Daily Price & Charts

Endowus has selected the Dimensional Pacific Basin Small Companies Fund for its broadly diversified exposure to smaller companies in both developed and emerging markets within the Asia-Pacific region, while continuing to add value through harvesting value and profitability premiums in this universe.
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Key Information

Fund Objective: Aims to achieve long-term total return by primarily investing in shares of small companies listed on the principal stock exchanges in the Pacific Basin.

Suitability:  Investors who are seeking to maximise long-term total return, have a long-term investment horizon, and understand that the principal of the Fund will be at risk.

Cost:
Dimensional_Pacific_Basin_Small_Companies_Fund_Cost.png
* Total Fund-level Fees include fund management fee of 0.45%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 26 February 2004
Share Class Inception: 5 March 2019
Benchmark: MSCI Pacific Small Cap Index

Fund AUM: SGD 141m
Source: MorningStar as of 30 March 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 31 December 2020. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the Dimensional Pacific Basin Small Companies Fund for its broadly diversified exposure to smaller companies in both developed and emerging markets within the Asia-Pacific region, while continuing to add value through harvesting value and profitability premiums in this universe.

Research by academics shows that tilts in equities towards cheaper valuation (value), smaller cap (size) and higher profitability (profitability) add statistically-significant positive returns above the market. These are called value, size and profitability premium, and they are considered as proven drivers of equity returns.

Dimensional has a systematic and time-tested investment process that translates the academic insights mentioned above into real-life portfolios. Importantly, Dimensional also has a strong focus on cost-efficient implementation and trading. Therefore, Dimensional’s portfolios not only capture the broad market total return, but also add value by harvesting the proven equity premiums and through its cost-efficient implementation. We have reviewed many funds that purport to have smart beta or factor-based investing, but our analysis shows that Dimensional consistently delivers better returns through long cycles and under all market conditions versus peers.

The Fund has targeted exposure to the size premium by primarily investing in securities of smaller companies, and it also harvests value and profitability premiums in this universe. We are using Dimensional’s institutional clean share class with no loaded fees. It is an Irish-domiciled UCITS fund which is more tax-efficient, and it is also denominated in Singapore dollars to make it FX-efficient for Singapore-based investors, matching your assets with your future liabilities and thereby removing unnecessary FX risks and costs.

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Updated by Endowus: May 2021

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