Dimensional Fund Advisors: An Active-Passive Powerhouse

Dimensional Financial Advisors, an institutional investment advisor all but unknown to the general public, is “An Active-Passive Powerhouse” according to an October 20, 2016 Wall Street Journal article. This Wall Street Journal article offers an in-depth look at Dimensional, explaining that the firm “isn’t strictly an active or passive investor. It’s both.”

“We think indexing is too mechanical,” says David Booth, chairman and co-chief executive at Dimensional Fund Advisors in Austin, Texas to The Wall Street Journal. “A little bit of judgment can make a difference.” For many disciplined investors adhering to their approach, that difference has been very significant.

Success breeds more success. Dimensional over the last year has been attracting nearly $2 billion in net assets per month at a time when investors are withdrawing billions from well-known traditional firms such as J. P. Morgan, Blackrock of Merrill Lynch, Fidelity Investments, and PIMCO.

“Dissecting Dimensional” is a recent high-level overview from Pensions & Investments that illustrates Dimensional’s success with charts on the firm’s growth, performance, and low costs.

Working closely with some of the industry’s most respected financial economists such as Nobel laureate Professors Eugene Fama and Robert Merton, Dimensional is committed to bringing academic research to practical life in the form of distinctive empirical strategies. Dimensional portfolios have informed Professional Financial strategies for personal wealth management for nearly twenty years. As client portfolios have prospered since integrating Dimensional portfolios into our investment management, Professional Financial has grown along with our clients.