Each day, the global financial markets process millions of trades between buyers and sellers.
These trades embed vast amounts of news, expectations and information into prices.
Dimensional regards a security’s price as the best estimate of actual value—and bases its investment approach on market prices.
Dimensional believes security prices contain reliable information about expected returns.
The firm draws insights from research and prices to emphasize market areas—or dimensions—that drive returns.
Equity dimensions with higher expected returns are small, value and high profitability companies. Fixed income dimensions are term, credit and currency.
Dimensional targets these dimensions in low-cost, broadly diversified strategies.
Index fund managers aim to match index returns, accepting portfolio management and trading constraints that can increase costs.
Traditional managers and quants may rely on predictions or backtested simulations to find mispriced securities or to time markets.
Dimensional believes investors can have a successful investment experience without having to outguess the market. The firm trusts market prices and applies a scientific, transparent and process-driven investment approach to pursue higher expected returns.
Dimensional has forged deep working relationships with top academics in finance.
Nobel laureate Eugene Fama, fellow researcher Kenneth French and other leading academics are directors and consultants to the firm.
A scientific perspective guides the firm’s culture, philosophy, and investment approach.
The research is out there for anybody to access. What distinguishes Dimensional is the way we implement the ideas.”
- David Booth
Expert implementation sets Dimensional apart. The firm applies financial science in real-world portfolios through a process that integrates:
RESEARCH - Gain a better understanding of expected returns by evaluating and testing empirical research
PORTFOLIO DESIGN - Increase expected returns while allowing for robust risk and cost management
PORTFOLIO MANAGEMENT - Use current market information to balance tradeoffs between competing premiums and costs
TRADING - Reduce trading costs by employing a flexible approach to participate in available market liquidity
1. Firmwide assets under management as of September 30, 2023, in USD (billions). 2. In USD. Source: Dimensional, using data from Bloomberg LP. Includes primary and secondary exchange trading volume globally for equities. ETFs and funds are excluded. Daily averages were computed by calculating the trading volume of each stock daily as the closing price multiplied by shares traded that day. All such trading volume is summed up and divided by 252 as an approximate number of annual trading days. 3. Relative price is measured by the price-to-book ratio; value stocks are those with lower price-to-book ratios. Profitability is measured as operating income before depreciation and amortisation minus interest expense scaled by book equity. 4. Diversification neither assures a profit nor guarantees against loss in a declining market. AMERICAS Austin, Charlotte, Santa Monica, Toronto, Vancouver EUROPE Amsterdam, Berlin, Dublin, London ASIA PACIFIC Hong Kong, Melbourne, Singapore, Sydney, Tokyo MKT-39302 10/23 3152820 Eugene Fama and Ken French are members of the Board of Directors of the general partner of, and provide consulting services to, Dimensional Fund Advisors LP. This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions. “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., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services. SINGAPORE This material is deemed to be issued by Dimensional Fund Advisors Pte. Ltd., which is regulated by the Monetary Authority of Singapore and holds a capital markets services license for fund management. This advertisement has not been reviewed by the Monetary Authority of Singapore. This information should not be considered investment advice or an offer of any security for sale. All information is given in good faith without any warranty and is not intended to provide professional, investment, or any other type of advice or recommendation and does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. Dimensional Fund Advisors Pte. Ltd. does not accept any responsibility and cannot be held liable for any person’s use of or reliance on the information and opinions contained herein. Neither Dimensional Fund Advisors Pte. Ltd. nor its affiliates shall be responsible or held responsible for any content prepared by financial advisors.
