Dimensional Fund Advisors
Introduction to Dimensional Fund Advisors
At Sherman Wealth Management, we utilize Dimensional Fund Advisors Nobel Prize winning science in our portfolios.
About the Firm
Dimensional is a global investment firm that has been serving investors for more than 30 years. They offer investment solutions across asset classes, including global equities, fixed income, and REITs. Dimensional manages $388 billion for investors worldwide.
Dimensional Fund Advisors LP founded in 1981. Global AUM and number of employees as of December 31, 2015. Locations with offices operated by Dimensional. “Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., and Dimensional Japan Ltd.
Dimensional has a strong belief in markets frees us to think differently about investing. They believe the best way to invest is to identify differences in expected returns and balance the tradeoffs among competing premiums, diversification, and costs. Their consistent philosophy has guided the investment solutions we have offered clients since our founding.
Investing involves risks such as fluctuating value and potential loss of principal value. There is no guarantee strategies will be successful.
Dimensional identifies compelling research and apply it to practical investing.Many of the greatest advancements in finance have come from the academic community. Dimensional works closely with leading financial academics to identify new ideas and research that may benefit investors.
A Clear View of Expected Returns
Decades of research and rigorous testing underpin their approach to pursuing higher expected returns. Portfolios can be structured around these dimensions, which are sensible, backed by data, and cost-effective to capture in diversified portfolios. Backed by years of research, they identify and pursue these dimensions for investors.
Diversification does not eliminate the risk of market loss. 1. Relative price as measured by the price-to-book ratio; value stocks are those with lower price-to-book ratios. 2. Profitability is a measure of current profitability, based on information from individual companies’ income statements.
A Dynamic Investment Process
Their goal is to add value over benchmarks and peers through an integrated and robust process. Using information in market prices throughout the process, Dimensional carefully structures and implements portfolios to target higher expected returns. Their integrated, flexible approach considers the interactions among premiums, market frictions, costs, and diversification.
Our Track Record
They have a long history managing time-tested investment strategies for clients. By evolving with advances in financial science, Dimensional has delivered long-term results for investors.
1. Returns are annualized from the first full month and reflect compound returns and assume reinvestment of dividends and other earnings. Benchmark information available in the appendix.
Performance data shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown.
The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
To obtain the most current month-end performance data, visit us.dimensional.com.