DFA Emerging Markets Value Portfolio has a strong value orientation that pulls it toward risky segments of the market. A closer review of its risk/reward profile has reduced our confidence that this strategy will outperform the MSCI Emerging Markets Index on a risk-adjusted basis over the long run. So, we are downgrading its Process Pillar rating to Below Average from Average and its Morningstar Analyst Rating to Neutral from Bronze.
Will DFEPX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable DFEPX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the DFEPX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of DFEPX’s parent organization’s priorities and whether they’re in line with investors’ interests.