During many client review meetings, Simon has discussed the 2022 market upheaval, and the impact on our portfolios, explaining that it could have been much worse.

Yesterday, we received the following news release with probably the most unexpectedly satisfying headline, Dimensional Tops Trustnet 2022 Performance Table.” Just as a reminder, 5 out of the 7 funds in our portfolios are managed by Dimensional. Here is the release in full.

One of the UK’s leading news and data providers for investors and advisers, Trustnet, has named Dimensional as the asset manager with the highest number of top-quartile funds in 2022. FE fundinfo’s head of editorial, Gary Jackson, wrote, “Dimensional Fund Advisors is the asset management house that had the greatest success in topping the equity fund sectors in 2022.”

The analysis focused on asset managers with more than five funds where quartile performance rankings are appropriate and found that 83% of Dimensional’s funds were first quartile in 2022, with the remainder in the second quartile. None of Dimensional’s equity funds included in the analysis were lower than second quartile.

Jackson added, “Dimensional is known for its evidence-based investment approach that uses academic research and market data to construct diversified, low-cost portfolios targeting specific dimensions of expected returns such as company size, value, profitability, and momentum. This approach involves maintaining a long-term perspective while avoiding market timing and individual stock picking.”

“Neither Dimensional nor its clients are particularly swayed by short-term performance,” said Nathan Lacaze, Co-CEO of Dimensional Fund Advisors Ltd., “but it is satisfying to see our disciplined and systematic approach to harnessing the power of the market has been rewarding.”

Nathan’s response is typically Dimensional. No bravura or swagger. Dimensional are not trying to be top quartile performers. They are committed to an academic, evidence-based approach to capturing market returns. It’s reassuring to know that by sticking to your long-held investment principles, you can deliver high quality results for your clients in historically difficult market conditions.