DFA Lowers U.S. Mutual Fund FeesDFA Lowers U.S. Mutual Fund Fees
Advisors (and clients) get a nice Christmas gift from Dimensional: an average 8% reduction in management fees across its U.S. mutual funds.
Dimensional Fund Advisors has reduced management fees or expense caps on 77 U.S. mutual funds, including the fund company’s most widely held funds, including its flagship core, value and fixed income funds. The changes take effect Feb. 28, 2020.
On average, management fees across the company will decline 8%, on an asset-weighted basis.
“We expect to do better than benchmarks and peers, after fees, so we fight for every basis point,” said Gerard O’Reilly, co-CEO and CIO, in a statement. “We continue to gain insights from research and innovate across all aspects of our process.”
For instance, the firm’s U.S. Core Equity 1 Portfolio will see a reduction in management fee from 17 to 14 basis points. On its Global Allocation 60/40 Portfolio, it reduced the total management fee limit from 25 to 20 basis points.
