The mission of Dimensional Fund Advisors is to deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading. Dimensional is also able to deliver increased returns due to their low fees.
Dimensional’s model is based not on speculation but on the science of capital markets with decades of research from leading economists to guide the way.
As of March 31, 2008, Dimensional had $145 Billion Assets Under Management. These assets are divided among US Equities, International Equities, Fixed Income, Tax-Managed Separate Accounts and Global Portfolios.
Dimensional versus Traditional Management
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Dimensional Management |
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Index Management |
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Active Management |
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Believes capital markets work and price securities fairly. |
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Believes capital markets work and price securities fairly. |
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Believes markets often mis-price securities. |
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Captures specific dimensions of risk identified by financial science |
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Allows commercial benchmarks to define strategy. |
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Picks stocks and times markets based on securities analysis. |
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Increases returns through portfolio design and reduced trading costs. |
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Accepts lower returns and increased trading costs in favor of tracking. |
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Generates higher expenses, trading costs and excess risk from forecasting. |
Dimensional Fund Advisors
1299 Ocean Avenue
Santa Monica, CA 90401
http://www.dfaus.com
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