Dimensional’s investment approach is based on a belief in markets. Rather than relying on futile forecasting or trying to outguess others, we draw information about expected returns from the market itself—letting the collective knowledge of  its millions of buyers and sellers set security prices. Letting markets do  what they do best—drive information into prices—frees us to spend time where we believe we have an advantage, namely in how we interpret the research, how we design and manage portfolios, and how we service our clients. It means we take a less subjective, more systematic approach to investing—an approach we can implement consistently and investors can understand and stick with, even in challenging market environments.

Dimensional’s investment approach is grounded in economic theory and backed by decades of empirical research. Our internal team of researchers works closely with leading financial economists to better understand where returns come from. Research has shown that securities offering higher expected returns share certain characteristics, which we call dimensions. To be considered a dimension, these characteristics must be sensible, persistent over time, pervasive across markets, and cost-effective to capture. We structure broadly diversified portfolios that emphasise the dimensions of higher expected returns, while addressing the trade offs that arise when executing portfolios. Every day our portfolio managers and traders seek to balance costs against expected returns and diversification. We work for the slightest expected gain, as every incremental improvement can add up over time.

Dimensional Investing is about providing a successful investment experience. That means more than just returns. It means offering peace of mind because investors know that a transparent approach backed by decades of research is powering every decision. Markets go up and they go down. The goal of Dimensional Investing is to help people be prepared, so they can stick with their plan.

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