This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
A Core principle of the Park + Elm’s Investment Strategy is investing efficiently, and adding value by analyzing and reducing portfolio expenses. We focus on partnering with firms that value those same principles, in order to deliver a cost efficient, research based portfolio for our clients.
We are thankful to be partners with a well-respected organization that recently announced fee reductions. As a fiduciary, we continuously analyze the cost of building a portfolio, and work with partners that add value through reducing expenses. Dimensional Fund Advisors is pleased to announce a reduction in management fees or expense caps for 77 US Mutual Funds effective February 28, 2020.
Across Dimensional US Funds, there will be an average management fee reduction of 8% on an asset-weighted basis. Many of Dimensional’s most widely held funds, including the flagship Core, Value and Fixed Income portfolios, will see management fee reductions. For a full list of the changes, please refer to the table below.
“We evaluate expense ratios and management fees for every fund on an ongoing basis and look to make adjustments where appropriate,” said Co-CEO Dave Butler. “We have made previous reductions to US Fund management fees or expense caps in 2015, 2017, and 2019.”
“We expect to do better than benchmarks and peers, after fees, so we fight for every basis point,” noted Gerard O’Reilly, Co-CEO and CIO. “We continue to gain insights from research and innovate across all aspects of our process.”
EXHIBIT A
Dimensional US Mutual Funds – Management Fees
EXHIBIT B
Dimensional US Mutual Funds – Total Management Fee Limit
EXHIBIT C
Dimensional US Mutual Funds – Expense Limitation Amount
This is a BIG deal. This will positively affect our portfolio values, and, long-term, can make an impactful difference in retirement. Investing in equity markets can be risky and volatile, but expenses are one controllable aspect of an investment strategy. These efforts also confirm that Park + Elm and Dimensional are working to give clients the best products, in the most efficient way.
How much retirement income can YOUR portfolio support? Have you considered interest rate and inflation risk? Focusing on a final number doesn’t tell the whole story. It’s important to have discussions with a financial planner about income streams and cost of living in your retirement years.
Check out this second installment of the Retirement Readiness series! How much should you save for retirement? Marlena Lee, PhD, discusses important factors that can help you meet your goals, like determining your savings rate, monitoring your progress, and making adjustments over time. This My Retirement Income Calculator can help give you a sense of how much income your savings could provide in retirement.
The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 turns into $138,908 from 1970 through the end of August 2019. Miss the S&P 500’s five best days and that’s $90,171. Miss the 25 best days and the return dwindles to $32,763. There’s no proven way to time the market—targeting the best days or moving to the sidelines to avoid the worst—so history argues for staying put through good times and bad. Investing for the long term helps to ensure that you’re in the position to capture what the market has to offer.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
Dimensional Founder David Booth shares his perspective on the limitations of market forecasting in this less than two minute video. Instead of enticing people to try to stock-pick, Dimensional wants to educate investors, with the over 90 years of data, on investing in capital markets.
Looking at the stock market over the past 20 years, you might think of Charles Dickens: It was the best of times—and the worst. But while the 2000s and 2010s have differed starkly in performance, collectively they have reinforced investing lessons on patience and discipline.
This piece from our partner, Dimensional Funds, discusses the well supported thought that maintaining patience and discipline, through the bad times and the good, puts investors in position to increase the likelihood of long‑term success.
…or check it out below:
A Tale of Two Decades_ Lessons for Long-Term InvestorsThis 1 minute video says it all! Nobel laureate Eugene Fama provides perspective for long-term investors on why they shouldn’t pay a lot of attention to short-term results.
The most free way of thinking about investing is understanding what the possibilities are…good or bad.
In this short video, Nobel laureate Eugene Fama discusses how financial markets work, what fuels innovation, and the upside and downside of risk.
