Products January 14, 2004

Dimensional Offers Three New Funds For DC Plans

January 14, 2004 (PLANSPONSOR.com) - Dimensional Fund Advisors has launched three new options, Global Funds, for plan sponsors to consider adding to their defined contribution lineup.
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Each of the three Global Funds is composed of more than a dozen of Dimensional’s existing mutual funds.   The three funds offer balanced portfolios to investors reflecting broad diversification and a defined level of risk:   conservative, moderate and aggressive, according to a news release.

The portfolios’ diversification comes from an exposure to large and small strategies, both core and value, as well as fixed income.   The three diversification techniques utilized range from:

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  • conservative option – 25% exposure to equities; 75% to fixed income
  • moderate option – 60% exposure to equities; 40% to fixed income
  • aggressive option – 100% exposure to equities.

Citing a lack of appropriate investment choices for the defined contribution marketplace in the news release, Dimensional points to Global Funds as an option for 401(k) and 403(b) plans due to the disciplined investment processes, low costs and systematic rebalancing employed.

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