Dimensional has announced the introduction of the Global Sustainability Targeted Value Fund, focusing on small and mid-cap value stocks in developed markets.
Mirroring the approach of its $4.3 billion (€4.1bn, £3.5bn) Global Targeted Value Fund, launched in 2008, this new fund aims to integrate transparent sustainability considerations. It maintains broad diversification and efficient cost management, with a management fee of 0.40% per annum.
The fund’s sustainability strategy aligns with Dimensional’s existing sustainability funds. It primarily seeks to reduce exposure to companies with significant carbon intensity and potential emissions from reserves. Additionally, the fund excludes firms involved in industries such as coal, palm oil and tobacco and those engaged in controversial practices like factory farming or child labour.
Details of these sustainability considerations are available in the Fund Centre.
Dimensional’s sixth sustainability fund covers various market segments, including core equity in developed and emerging markets, fixed income and now global developed small- and mid-cap value stocks.
As of the end of September 2023, Dimensional has been managing sustainability funds for European investors for over a decade, with assets under management of around £4 billion in these funds.
Co-CEO Nathan Lacaze commented on the launch: “With Global Sustainability Targeted Value, investors can emphasise their exposure to the size and value premiums in their sustainability allocation. Combining this new fund with our sustainability core equity funds allows investors to customise according to their own risk tolerance their exposure to securities with higher expected returns.”
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