Dimensional Fund Advisors plans to roll out two Retirement share classes. Dimensional’s R1 and R2 share classes will provide 10 basis point and 25 basis point fees, respectively. These fees will be used to pay for shareholder services such as recordkeeping. Dimensional’s R shares contain no 12b-1 fees.

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Dimensional Fund Advisors, a leading institutional investment manager, announced today that it plans to launch two R share classes for use in defined contribution plans.

R shares, or “retirement shares,” are share classes designed for use by retirement plans. They pay a fee to parties who provide services to plans and their participants.

Dimensional’s R1 and R2 share classes will provide 10 basis point and 25 basis point fees, respectively. These fees will be used to pay for shareholder services such as recordkeeping. Dimensional’s R shares contain no 12b-1 or distribution fees.

“We have seen a surge of interest in our investment strategies over the years from defined contribution plan sponsors and their consultants,” said Patrick E. Carter, vice president and head of defined contribution services. “They are attracted to our research-driven investment process, our relatively low fees, and our track record. Our new R shares will make it easier for them to choose a Dimensional solution for their retirement plans.”

Dimensional Fund Advisors is a global investment manager with over $150 billion in assets under management, including over $8 billion in defined contribution assets across more than 600 plans. The firm offers a full array of investment strategies based on scientific evidence that documents rewards for taking certain risks. Dimensional offers broadly diversified, yet focused exposure to the asset classes that have historically provided higher expected returns. 

Edited by: Erin Kello


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