Wednesday, September 22, 2010

Smart thinking trumps crystal ball

Good piece by Tim Blue in today's Australian:

IT is track record through time that can be most telling with fund managers.

Watch them ride out market cycles through smart thinking and investment processes robust enough to withstand the roller-coasters of financial crises.

Texas-based Dimensional Fund Advisors focuses on value and small capitalisation stocks, and deals with them in a way that eschews both index-style and traditionally active trading.

Its Australian Value Trust boasts a 10-year track record of 11.5 per cent annualised to August this year, net of fees, well ahead of the S&P/ASX 200 accumulation index of 7.3 per cent for the same period...