Fund Rationale: Dimensional Emerging Markets Large Cap Core Equity Fund

Dimensional Emerging Markets Large Cap Core Equity Fund (the “Fund”)
SGD Institutional Class Accumulation Shares (ISIN: IE00BF20LB02)
Fund Manager Page

Endowus has selected the Dimensional Emerging Markets Large Cap Core Equity Fund for its broadly diversified and passive exposure to Emerging Markets equities, and its ability to add value to market returns through harvesting factor returns using a cost-efficient and systematic investment process.
-----------------------------------

Key Information

Fund Objective: Aims to maximise total returns in Singapore Dollar terms over the longer term by investing in the Emerging Markets.

Suitability: Investors who are seeking for long-term capital appreciation, have a long-term investment horizon, and understand that the principal of the Fund will be at risk.

Cost:
_Dimensional_Emerging_Markets_Large_Cap_Core_Equity_Fund__Cost.png
* Total Fund-level Fees include fund management fee of 0.39%.
** Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 30 April 2015
Share Class Inception: 25 July 2017
Benchmark: MSCI Emerging Markets Index

Fund AUM: SGD 1.0bn
Source: MorningStar as of 30 March 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
_Dimensional_Emerging_Markets_Large_Cap_Core_Equity_Fund__Region.png

Sector Allocation:
_Dimensional_Emerging_Markets_Large_Cap_Core_Equity_Fund__Sector.png

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 Emerging Markets Large Cap Core Equity Fund for its broadly diversified and passive exposure to Emerging Markets equities, and its ability to add value to market returns through harvesting factor premiums using a cost-efficient and systematic investment process. 

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 positive exposure to the value and profitability factors, and limited exposure to the size factor. 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 an FX-efficient portfolio for Singapore-based investors matching your assets with your future liabilities and thereby removing unnecessary FX risks and costs.

-----------------------------------
Updated by Endowus: March 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.