Zurich fund gives $50m to Dimensional
The Canton of Zurich’s E13bn pension fund has appointed Dimensional Fund Advisors to manage a $50m (E49.8m) equity small cap portfolio, ousting Montgomery Asset Management. The appointment marks Dimensional’s first European client since it began marketing in Europe six months ago.
Montgomery had been running the mandate for four to five years, but “due to a performance issue”, the canton decided to re-tender the mandate, says Daniel Gloor, head of asset management at Zurich. “Dimensional was chosen as it has a different style, and its track record over the last 10 years is impressive.”
Dimensional, headquartered in California and with $33bn in assets under management, actively began marketing in Europe in May when it recruited David Salisbury, former chief executive of Schroders, as head of its London office, and Philip Nash as director, from Barclays Global Investors.
Says Nash: “The appointment is very exciting for us, not only because Zurich’s fund is one of the most respected funds in Europe, but because it reflects the increased acceptance on the Continent, of quantitatively-based value added investment styles in asset classes like small cap and emerging markets.