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Reducing Three Managers to One

DFA LogoSometime after January 1, we will consolidate our three DFA equity funds–DFA International Core Equity (DFIEX), Emerging Markets Core Equity (DFCEX), and U.S. Core Equity II (DFQTX)–into one global equity fund, DFA Selectively Hedged Global Equity (DSHGX).

We’ve wanted to invest in one global equity fund for several years, but the one fund that met our requirements over-weighted the US markets. Instead, we chose to manually weight the US market to its proper allocation by using three funds.

Just recently DFA came out with a global fund, the DFA Selectively Hedged Global Equity fund, that weights the US in what we consider the proper manner. The new fund holds virtually the same stocks with the same country weightings as our current mix of three funds.

The benefit to you is that this move will help reduce rebalancing costs and trading fees. We see little to no downside.

You will see money beginning to move after the first of the year. This change could mean you will incur increased capital gains taxes and trading fees in 2015. We will work hard to try to insure we hold any gains and fees to a minimum.

If you should have any questions, please contact us at invest@kahlerfinancial.com.

 

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One Response to Reducing Three Managers to One

  1. Jerry December 16, 2014 at 9:08 am #

    WOW!!! Combined net assets will total $43B. Pretty significant single portfolio controlling all global investments.