Who is Dimensional Fund Advisors?
Founded in 1981, Dimensional Fund Advisors is a global investment manager dedicated to implementing the great ideas in finance. As of March 2018, Dimensional has $586 billion in firmwide assets under management globally. Dimensional is a leader in applying advanced financial science to investment solutions for clients around the world, and has over the years translated financial research into real-world investment solutions so investors may seek to capture what the market offers in all its dimensions. They structure broadly diversified portfolios that emphasize the dimensions of higher expected returns in both equities and fixed income products, while addressing the tradeoffs that arise when executing portfolios. Dimensional’s investment approach is grounded in economic theory and backed by decades of empirical research, and based on a belief in markets.
Why did you choose Dimensional Fund Advisors?
We share Dimensional's core belief that markets are efficient. Over time investors are rewarded commensurately for the risks that they take, and it is futile to try to outguess the markets. Dimensional focuses on seeking consistent and higher expected returns to add value over benchmarks and peers. We have chosen to partner with DFA for the following reasons:
Research: DFA’s investment approach is grounded in economic theory and backed by decades of empirical research. DFA’s funds employ investment strategies built around the pioneering research of Nobel Prize Laureate Eugene Fama and Kenneth French. Other leading economists including Nobel Prize Laureate Robert Merton also work closely with Dimensional.
Portfolio Design: DFA’s research has shown that securities that offer higher expected returns share certain characteristics, or dimensions, that are persistent over time, pervasive across markets, and cost-effective to capture. DFA structures broadly diversified portfolio that emphasize the dimensions of higher expected returns.
Implementation: Fees dramatically affect long-term returns, and DFA focuses on lowering trading costs with efficient trading and a low turnover in its portfolios. DFA has developed its trading infrastructure for more than three decades, and takes a flexible and patient trading approach. Its funds have lower expense ratios compared to the industry average.