Dimensional Fund Advisors

13/1/2019.     Dimensional Fund Advisors (DFA) is a legendary fund management company, that has been at the forefront of evidence-based investment strategy for over thirty years. 

Over half a trillion US dollars of clients’ money cannot be wrong

‘Evidence-based’ means following the research and science of investment theory that’s been proven to work over the long term, and shunning the idea that it’s possible to reliably outguess the markets, or pick active fund managers that can beat their benchmark in the long run.

• Low cost, index-tracking specialists
• Mostly traditional funds (ie. mutual funds, unit trusts, etc.)
• More than US $600 billion of assets under management
• Headquartered in USA
• 1400 staff in 13 global offices
• Founded 1981
• Numerous Nobel prize winners on staff and advisory board

Originally only accessible to institutional investors (such as pension companies and sovereign wealth funds), in recent years DFA funds have become available through selected financial advisors who follow the Dimensional philosophy.  These advisors have paid their own way to attend Dimensional educational training courses, and furthermore provide a fee-only service to their clients (not commission-based).

Numerous luminary academics and thought-leaders in finance have played a part in the creation of Dimensional’s funds.  These include:

• Eugene Fama – Nobel Laureate – Consultant to DFA and board director
• Kenneth French – Nobel Laureate – Consultant to DFA and board director
• Robert Merton – Nobel Laureate – Resident Scientist at DFA
• Myron Scholes – Nobel Laureate – Consultant to DFA

Dimensional was founded 37 years ago, and currently manages over USD $600 billion, putting them in the top few globally in terms of assets under management.  Dimensional has over 1300 staff, across offices and research centres in 9 countries.

Here are some short video clips that demonstrate the world class academic heritage of Dimensional Fund Advisors

A Foundation Built on Great Ideas (2min30s)

Becoming Dimensional (1min20s)

Dimensional Fund Advisors are regularly featured in the financial press, with articles and commentary about them appearing in journals such a Barron’s, Forbes, and the Wall Street Journal.

To find out more about Dimensional Fund Advisors, and why their range of funds has such immense support from the professional financial community, please contact me.