Pension Professionals and Evidence-Based Investing
Pension & Investments' Charles McGrath ran a piece on Dimensional Fund Advisors empasising the value they add
via their evidence-based investment apporach
and strong desire to keep costs down
The information is graphically presented, text highlights include:
: Dimensional has grown its assets significantly as well as its investment offerings. Between 2005 and the end of 2015, assets under management grew 350%."
: Long-term returns of the top funds by AUM have outperformed their peer groups and added alpha relative to their benchmarks."
"Keeping costs low
: Embedded in Dimensional’s process is minimizing transaction costs through its buy/sell discipline that avoids the costs incurred by index funds’ regimented rebalancing."
: Since 2005, DC funds have added $31.6 billion in exposure to Dimensional funds while DB plans have added $21 billion. Forty percent of the firm’s assets are institutional, with the remaining 60% from financial advisers."
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