The Abacus Investment Committee approved changes within two asset classes in the past quarter. The first was a shift in the allocation within U.S. stocks, which follows below:
| Old | New | |
|---|---|---|
| DFA US Sustainable | 50% | 70% |
| DFA Targeted Value | 25% | 15% |
| O’Shaughnessy All Cap Core | 25% | 15% |
The primary reason for this change is that the Investment Committee decided that it was more appropriate to have a 30% allocation to the small company, value company and other tilt factors.
The second approved change was to consolidate the number of funds used for exposure to the real estate asset class. The new allocation follows below:
| Old | New | |
|---|---|---|
| Vanguard US REIT Index | 60% | 0% |
| DFA International REIT Index | 40% | 0% |
| DFA Global REIT Index | 0% | 100% |
Rebalancing, cost and liquidity were the primary drivers for this decision. By using one globally diversified REIT strategy, we avoid manually rebalancing the underlying components and incurring trading costs. Since DFGEX’s allocation is based off world REIT market capitalization, the fund manager handles the rebalancing, reducing client trading costs. Also, using DFGEX allows for one day settlement instead of three.
