Why Dimensional
We Add Value without Relying on Forecasts or Intuition
We believe that, over time, a structured investment approach based on financial science and the efficacy of capital markets will add value with a higher reliability and confidence level than one based on instinct and prophecy.
Investment Philosophy Is Grounded in Robust Academic Research
The Three-Factor Model has replaced the Capital Asset Pricing Model in the work of financial economists. Our equity strategies capture the insights of the model, which has withstood rigorous open review.
Minimal Style Drift
We adhere strictly to specific parameters to maintain reliable asset class exposures. Our 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.
Smart Trading Increases Returns
Careful trading can reduce or even reverse the costs borne by traditional managers. Because Dimensional focuses on capturing the systematic performance of broad market dimensions rather than the random fluctuations of individual securities, we can keep costs low, patiently and expertly. We concentrate on favourable price execution that neutralizes the effects of momentum and index reconstitution and we maintain portfolio-specific hold ranges that reduce turnover and trading costs.
Low Cost
In line with our structured, scientific approach to investing, Dimensional's investment management fees are positioned well below those of typical, traditional active managers. Our patient and price-conscious buy-and-hold approach to trading is designed to minimize costs.
Pioneers of Risk-Factor-Based Management
Dimensional has pioneered many strategies now taken for granted in the industry. The firm was originally founded to provide institutional investors access to US small cap stocks, underrepresented at the time in most portfolios. Dimensional later introduced its first value strategies based on the Three-Factor Model. In 2004, we launched core strategies that efficiently target risk factors across the total stock market.
Broad Line of 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. Our goal is to provide investors with global investment solutions that, at the total portfolio level, maximize returns for a desired risk level.
Clear and Accessible Philosophy and Approach
Dimensional strives to keep its process transparent so that clients can easily understand it.
Combination of Theory and Practice
By acting as a conduit between scientists and practising investors, Dimensional has pioneered many strategies and consulting technologies now taken for granted in the industry. This feedback loop serves as an idea growth engine, positioning us to research tomorrow's solutions today.
Low Professional Turnover Strengthens Our Team Process
Longevity characterizes the nucleus of our investment and research team. We have had very few departures among our portfolio managers and we 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 Client Service
We are eager to continue building relationships with institutional clients, financial advisors, and consultants through development of customized investment programs and an interchange of investment research and ideas.