Aviva welcomes Dimensional to its multi-asset squad

David Byrne (DB): Stephen, Aviva Ireland has recently added the Dimensional World Allocation Funds to our investment platform. Can you share why this move makes sense?

Stephen Rice (SR): Absolutely, David. The Dimensional World Allocation Funds bring an evidence-based investment philosophy that aligns well with our goal of offering diversified, long-term-growth solutions. These funds are globally diversified, combining equities and fixed income across developed and emerging markets. Their systematic, rules-based approach complements our existing multi-asset offerings.

DB: How do these funds differ from Aviva’s own Fixed Allocation ESG range?

SR: Our Fixed Allocation ESG Funds are designed to be easy to explain, low-cost solutions that follow a passive index-tracking approach. They maintain fixed allocations to equities and bonds, rebalanced monthly by Aviva Investors. In contrast whilst the Dimensional World Allocation Funds do track longer term to similar equity and fixed income weightings, they offer a more sophisticated systematic strategy. They apply academic insights daily to target higher expected returns, tilting towards small cap, value and profitable companies, and include emerging market exposure.

DB: So it’s about complementing, not competing?

SR: Exactly. Dimensional adds something different to our platform. It’s not about replacing what works—it’s about broadening the tool kit for brokers and clients. These funds are ideal as core holdings for clients who value diversification and a rules-based approach. Both ranges, may also be used as part of a diversified portfolio for clients of brokers who like the clarity of having their investments split in set weightings between equities and fixed income but who also like the idea of a diversified portfolio.

DB: Turning to you Damian, Dimensional manages more than $850 billion for investors around the world with an approach built around a single philosophy. How do you explain that philosophy?

Damian Hanrahan (DH): Thanks David. Fundamentally, we believe that markets do an excellent job of incorporating the expectations of millions of buyers and sellers into prices—in real time. Rather than trying to find what markets got wrong, we trust them. This allows us to take a less subjective approach to investing.

 

DB: That kind of “market-led” approach makes it sound like your funds are passive?

DH: Yes, we do offer some of the advantages of index funds, like low turnover, low cost and broad diversification. But, like a traditional active fund, our objective is to beat the market, not match it.

Financial science tells us there are areas of the market that have higher expected returns, so our “systematic active” approach weights towards those areas. For equities, that means an emphasis on smaller companies, value stocks and companies with higher profitability.

DB: What are the advantages of this systematic active approach?

DH: Being active means, we can put more emphasis on the stocks with higher expected return. It also means that we can be more flexible at the point of trading, which can add value to the portfolio.

Being systematic means, we can be disciplined in how we target the dimensions of higher expected return, using the most up-to-date information from the market. We can aim for outperformance with broad diversification at low cost.

DB: Stephen, Aviva’s multi-asset range has grown significantly. Can you talk about the strength of our overall offering?

SR: Certainly. We now offer a full spectrum of multi-asset solutions—from low-cost passive options like our Fixed Allocation ESG Funds and Passive Plus Funds, to strong-performing active strategies like Cantor Fitzgerald’s Multi-Asset range, which has earned five-star Morningstar ratings and are Ireland’s best-performing multi-asset range1. Our own Active ESG Multi-Asset range has also shown improved performance since Dean took over managing the funds two years ago1.And now, with Dimensional’s systematic active approach, we truly offer something for every investor profile.

DB: How do you see brokers positioning these funds within client portfolios?

SR: They’re ideal as a core holding—especially for clients who value diversification and a rules-based approach. The funds are structured to reduce behavioural biases and market timing risks, which are increasingly important in volatile markets. Advisers can use them alongside other multi-asset funds from Aviva, like Cantor Fitzgerald’s active Multi-Asset Funds, to balance risk and return.

DB: That’s a powerful proposition. Can you summarise what makes Aviva the go-to platform for brokers?

SR: With active, passive, and systematic strategies all available on one platform, Aviva is the broker’s one-stop shop for multi-asset investing. Whether your client prefers low-cost, simple passive solutions, active management with strong performance, a more rules-based approach to investing or a blend of different investment styles and managers, we have the solution.

DB: Final question to both of you. We are here at the home of Irish international football, so if Dimensional was a manager, who would they be?

SR: I think you could characterise Dimensional funds as being evidence based and solidly researched, targeting consistent longer term returns and not getting unnerved by shorter term volatility or market noise, so while I would be tempted to say Xabi Alonso, given the exposure to global markets, I’d have to say Carlo Ancelotti. Calm, disciplined management with consistent results.
DH: I was going to say Heimir Hallgrimsson, but I wouldn’t be allowed back into our London office after his Iceland team beat England at Euro 2016!

^{1. Source: Longboat Analytics. Based on performance to 01 October 2025 based on comparison versus equivalent funds from Zurich, Irish Life, New Ireland, Standard Life, and Royal London.}