|
In order for Trusted Advisor to deliver a successful investment experience
for our customers we use the funds and philosophy of Dimensional Fund
Advisors Inc. Many investment managers either believe they can actively
exploit "mispricings," so they engage in traditional active
management; or they believe they can do nothing to add value over benchmarks,
so they engage in traditional index management. Dimensional takes a different
approach. Their strategies combine the broad diversification, low cost,
and reliable asset class exposure of passive strategies and add value
through engineering and trading. Please download 
Dimensional
Fund Advisors Brochure which outlines it's investment philosophy, portfolio
engineering, and performance advantage.
For further information
regarding Dimensional please visit Dimensional’s website www.dfauk.com
and take the tour. This will navigate you through their most informative
sections and help you understand their approach to managing your money.
They
Add Value without Relying on Forecasts, Intuition, or Gut Feel
They believe that, over time, a well-grounded and structured investment
approach will add value with a higher reliability and confidence level
than one based on instinct and prophesy.
Minimal
Style Drift
They impose strict adherence to specific parameters that help maintain
reliable asset class exposures. Their portfolio managers have no discretion
to purchase stocks that do not meet these parameters, and no financial
incentive exists for them to deviate from our very specific disciplines.
State-of-the-Art
Trading Adds Value
Because Dimensional has a strong presence in small cap trading, they are
viewed as a source of liquidity in that arena. That allows Dimensional
to extract maximum block trading discounts for our customers. They are
also adept at other, cost-reducing trading techniques.
Low
Cost
In line with their structured, engineered approach to investing, Dimensional's
investment management fees are positioned well below those of typical,
traditional active managers. Their patient and price-conscious buy and
hold approach to trading is designed to minimise costs.
Pioneers
of Risk-Factor-Based Management
Dimensional was originally founded in 1981 specifically to provide institutional
investors with access to the US small-stock asset class, underrepresented
at the time in most portfolios. In 1992, Dimensional introduced its first
value products based on the work of Fama and French.
Building-Block
Strategies for a Complete Total Portfolio
Dimensional's broad array of investment strategies offers calibrated exposures
to the full spectrum of key asset classes across dimensions of size, value,
and geography. Their goal is to provide investors with global investment
solutions that, at the total portfolio level, maximise returns for a desired
risk level.
Focus
on Tangible, Measured Risk Factors
Integral to their process is defining and measuring risk on an ongoing
basis. Hallmarks are a keen awareness of risk exposures combined with
broad diversification. They believe this allows the risk/return attributes
of an asset class to be captured with a greater level of precision, providing
for steadier navigation through uncertain investment environments and
helping fiduciary investors monitor the results.
Clear
and Accessible Philosophy and Approach
Dimensional strives to keep its process transparent so that investors
can easily understand it.
Investment
Philosophy Is Grounded in Robust Academic Research
The Fama/French Three-Factor Model has replaced the Capital Asset Pricing
Model in the work of academic financial economists. Their equity products
capture the insights of the Fama/French model, which has withstood rigorous
open review.
Combination
of Theory and Practice
Dimensional is not only a conduit from leading financial economists to
our portfolio managers and clients, but also a conduit from investment
practitioners back to academia. The result: academic research becomes
more relevant to practical investing, and practical investing is backed
by solid academic knowledge.
Low
Professional Turnover Strengthens Their Team Process
The nucleus of their investment and research team has been together for
more than twenty years, while the average tenure of their portfolio managers
across asset classes is more than ten years. They have had very few departures
among portfolio managers and hire in advance of future growth. The decision-making
approach for strategies at Dimensional is the antithesis of the "star"
system.
Successful
and Independent
Dimensional is one of the largest independently owned institutional investment
management firms in the world. The firm is dedicated to managing investments
on behalf of clients and to operating its business in the best interests
of clients.
Exceptional
Customer Service
Dimensional are eager to continue building relationships with institutional
clients, financial advisors, and consultants through development of customised
investment programs and an interchange of investment research and ideas.
Investment
Philosophy Tour: The
Real Cost of Fund Management
|
