Dimensional Fund Advisors plans to reduce fees on 77 U.S. mutual funds, joining an industrywide push to lure customers with lower-cost investments.
Average management fees will be cut 8% on an asset-weighted basis, the company said in a statement Monday. The changes go into effect on Feb. 28.
Asset management firms have slashed what they charge clients in an effort to compete with inexpensive index funds. Fidelity Investments has introduced several zero-cost funds and Charles Schwab Corp. set off a shakeout in the sector this year by offering free stock trading.
“We expect to do better than benchmarks and peers, after fees, so we fight for every basis point,” Gerard O’Reilly, Dimension’s co-chief executive officer and chief investment officer, said in the statement.
Dow Jones earlier reported the changes.
