Dimensional Fund Advisors has launched three unique funds under Singapore’s Central Provident Fund Investment Scheme (CPFIS).
The three funds provide CPF Ordinary Account holders with access to Dimensional’s evidence-based approach, targeting market-beating returns. The funds draw on Dimensional’s 40-plus years of experience in factor investing and offer exposure to developed and emerging equity markets and global bonds.
Dimensional said it believes market prices incorporate new information and market participants’ expectations in real time. Its strategies use the information contained in prices to seek better returns, manage risk and control costs. Trusting markets means the firm takes a less subjective, more systematic approach to investing—which can be implemented consistently around the world and across asset classes.
Dimensional’s strategies are low cost, low turnover, own hundreds or thousands of securities, and generally use a flexible process that continuously and systematically targets higher expected returns.
Dimensional’s funds, available under the CPFIS, offer a combination of broad diversification with flexible implementation that aims to improve upon market returns. They are also among the lowest cost funds included under the CPFIS.
The three new funds offer a global, balanced portfolio solution able to meet various long-term investment objectives and are similar to long-running strategies available to Dimensional’s clients around the world.
Joel Kim, chief executive officer, Asia ex-Japan, and Head of International Fixed Income, said: “The CPF is a great asset to the people of Singapore, and the addition of Dimensional’s funds increases its value. We’ve been working with investors in Singapore for more than 10 years, and we are proud that so many more people will now have access to Dimensional Investing.”
Joel Teasdel, head of wealth management group, Asia ex-Japan, said: “Singapore’s private wealth management industry is developing fast and promises to transform the financial security of many families. Adding Dimensional’s funds to the CPF Investment Scheme is a game changer for people who want flexible and cost-effective access to world equity and bond markets.”
