Dimensional launches ESG SMAs

Dimensional Fund Advisors has launched three environmental, social and governance (ESG) separately managed accounts (SMAs) through Macquarie Wrap.

The three automatically-rebalanced model portfolios included a 100% high growth option, an 80%/20% growth/defensive split and a traditional 60%/40% balanced allocation, all with a fee of 50 basis points.

Once the investor was in the SMA, rebalancing occurred automatically and was administered by the wrap platform with no additional documentation required.

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Glenn Crane, Dimensional Australian chief executive, said more investors in Australia wanted to invest sustainably without compromising good investment outcomes while keeping costs low.

“These solutions set within that structure are going to make sense for a lot of people,” Crane said.

“Our aim is to target specific sustainability characteristics that investors can understand and compare to industry standards.

“We believe this approach enables more transparent reporting on investment and sustainability metrics relative to benchmarks.”

Dimensional was named by the Responsible Investment Association Australasia (RIAA) as a ‘responsible investment leader’.

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