Dimensional launches ESG SMAs

By Penny Pryor

Dimensional Fund Advisors has launched three environmental, social and governance (ESG) separately managed accounts (SMAs), which combine its global equity and fixed interest sustainability solutions into three rebalanced model portfolios.

The SMAs range from a 100 per cent high growth option, to an 80 per cent - 20 per cent growth-defensive split and a traditional 60 per cent - 40 per cent balanced allocation.

"More and more investors in Australia are wanting to invest sustainably without compromising good investment outcomes and while keeping costs low," Glenn Crane, Dimensional's Australian chief executive officer, 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."

The SMAs cost 50 basis points and are available through Macquarie Wrap.