Labour Union Cooperative Retirement Fund (LUCRF) has allocated $165 million to Dimensional to invest in two of the Austin, Texas-based firm’s funds.
LUCRF has invested $115 million in Dimensional’s Australian value fund and $50 million in a global small cap fund.
“We felt they were the most appropriate value manager in the value universe,” says Ben Samild, LUCRF’s head of investment strategy. “They have a consistent, rigorous and highly predictive model that extracts a premium from the market.”
LUCRF has about $2.9 billion in funds under management for the National Union of Workers. Its investment review process of a fund manager’s products may take up to six months.
Dimensional manages $230 billion globally and $20 billion in Australia with 500 staff worldwide. The 30-year old firm’s long-only Australian value fund has made a premium of 3.5 per cent over the ASX 300 during the last 10 years. Its Australian clients include MLC, QSuper, Medibank Private and Russell Investments.