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{{short description|American private investment firm}}
{{short description|American private investment firm}}
{{Infobox company
{{Infobox company
| name = Dimensional Fund Advisors
| name = Dimensional Fund Advisors
| logo = DFA Universal Color logo 2010 outlines.png
| logo = Dimensional Fund Advisors Logo.svg
| logo_size = 200px
| logo_size =
| type = [[Private company|Private]]
| type = [[Private company|Private]]
| foundation = {{Start date and age|1981}}
| foundation = {{Start date and age|1981}}
| founders = [[David G. Booth]]<br>[[Rex Sinquefield]]
| founders = [[David G. Booth]]<br />[[Rex Sinquefield]]
| location = [[Austin, Texas|Austin]], [[Texas]], [[United States]]
| location = [[Austin, Texas|Austin]], [[Texas]], [[United States]]
| key_people = [[David G. Booth]]<br>{{small|(Executive Chairman)}}<br>Dave Butler<br>{{small|(Co-CEO)}}<br>Gerard K. O'Reilly<br>{{small|(Co-CEO)}}
| key_people = [[David G. Booth]]<br />{{small|(Executive Chairman)}}<br />[[Dave Butler (basketball, born 1964/1965)|Dave Butler]]<br />{{small|(Co-CEO)}}<br />Gerard K. O'Reilly<br />{{small|(Co-CEO)}}
| num_employees = 1,400+ (2020)<ref>https://web.archive.org/web/20201231141630/https://us.dimensional.com/</ref>
| num_employees = 1,500+ (2024)<ref>{{Cite web|url=https://www.dimensional.com/us-en/who-we-are/about-us|title=Dimensional: About Us}}</ref>
| industry = [[Finance]]
| industry = [[Finance]]
| products = Money Management and Investment
| products = Money Management and Investment
| aum = {{Decrease}} $601 billion (December 31, 2020)<ref>{{Cite web|url=https://us.dimensional.com/|title=Dimensional Investing|access-date=2021-01-21}}</ref>
| aum = {{Increase}} $794 billion (Sept 30, 2024)<ref>{{Cite web|url=https://www.dimensional.com/us-en/individual|title=Dimensional Investing|access-date=2024-10-22}}</ref>
| website = {{url|dimensional.com}}
| website = {{url|https://www.dimensional.com}}
}}
}}
'''Dimensional Fund Advisors, L.P.''' (branded '''Dimensional''') is a private investment firm headquartered in [[Austin, Texas]]. The company has affiliates within 13 offices in the U.S., Canada, U.K., Germany, Netherlands, Australia, Singapore, and Japan. Dimensional was founded in [[Chicago]] in 1981 by [[David G. Booth|David Booth]], [[Rex Sinquefield]] and Larry Klotz. The company’s investment strategy is based on the [[efficient market hypothesis]].<ref name="Dimensional">{{Cite web|url=https://us.dimensional.com/|title=Dimensional Investing {{!}} Dimensional Fund Advisors|website=Dimensional|language=en-US|access-date=2018-11-09}}</ref> The company offers equity and fixed income mutual funds and repackaged funds as [[Exchange-traded fund|Exchange-traded funds]]. The company is owned by its employees, board members and outside investors.
'''Dimensional Fund Advisors, L.P.''' (branded '''Dimensional''' abbreviated '''DFA'''<ref>{{cite web | title=FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES: DFA INVESTMENT DIMENSIONS GROUP INC. | url=https://www.sec.gov/Archives/edgar/data/355437/000119312510003480/dncsr.htm | work=sec.gov | access-date=20 March 2021}}</ref>) is a privately-owned investment firm headquartered in [[Austin, Texas]]. Dimensional was founded in [[Brooklyn]]<ref>{{Cite web |title=David Booth: Biography |url=https://www.dimensional.com/us-en/bios/david-booth}}</ref> in 1981 by [[David G. Booth|David Booth]], [[Rex Sinquefield]] and Larry Klotz. The company has 15 international offices in the U.S., Canada, U.K., Germany, Netherlands, Australia, Singapore, and Japan.<ref>{{Cite web |title=Dimensional: About Us |url=https://www.dimensional.com/us-en/who-we-are/about-us}}</ref> Dimensional maintains additional U.S. offices in [[Charlotte, North Carolina]] and [[Santa Monica, California]].

The company’s founders studied at the [[University of Chicago]] under [[Eugene Fama]]. [[Kenneth French]] is co-chair of the firm's investment research committee.<ref>{{Cite web |title=Kenneth French: Bio |url=https://www.dimensional.com/us-en/bios/kenneth-french}}</ref> DFA's investment strategy is based on application of the [[efficient market hypothesis]].<ref name="Dimensional">{{Cite web|url=https://us.dimensional.com/|title=Dimensional Investing {{!}} Dimensional Fund Advisors|website=Dimensional|language=en-US|access-date=2018-11-09}}</ref> Dimensional was one of the earliest firms to offer [[passive investing]] and "runs the oldest small-cap index fund" in the United States.<ref>William J. Bernstein (2002). The Four Pillars of Investing: Lessons for Building a Winning Portfolio. McGraw-Hill, {{ISBN|0071385290}}, p. 103</ref> However, the firm's versions of [[index funds]] have the flexibility to trade daily<ref>{{Cite web |title=Dimensional Fund Advisors Lists Active Exchange-Traded Funds |url=https://www.dimensional.com/us-en/newsroom/dimensional-lists-etfs}}</ref> and skew towards smaller company stocks and [[value investing|value stocks]]; They operate differently from most index funds which rebalance on specific dates and are weighted by market capitalization.<ref>John Rekenthaler (Nov 25, 2020) [https://www.morningstar.com/articles/1012650/dfa-is-paying-the-price-for-its-conviction DFA Is Paying the Price for Its Conviction]. Morningstar.com, accessed 19 March 2021</ref> This strategy results in regulators, such as the SEC,<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/1816125/000179420220000482/form485a.htm|title=Registration statement - DIMENSIONAL ETF TRUST|publisher=SECURITIES AND EXCHANGE COMMISSION|date=16 November 2020}}</ref> and some analysts<ref>{{cite web | url=https://www.etf.com/DFAU | title=DFAU ETF Report | work=etf.com | access-date=20 March 2021}}</ref><ref>{{Cite web|last=Liu|first=Evie|date=18 November 2020 |title=Another Fund Manager Enters the World of Exchange-Traded Funds. What's Behind the Trend.|url=https://www.barrons.com/articles/dimensional-fund-officially-enters-the-world-of-exchange-traded-funds-51605743161|website=Barrons}}</ref><ref>{{Cite web|last=Lydon|first=Tom|date=December 28, 2020|title=The ETF-Mutual Fund Tide is Turning: DFAI and DFAU Switching Sides|url=https://www.etftrends.com/active-etf-channel/etf-mutual-fund-tide-dfai-dfau-switching-sides/}}</ref> describing the funds as [[Active_management |actively managed]]. The company offers equity and fixed income mutual funds, [[Exchange-traded fund|Exchange-traded funds]], separately managed accounts, and model portfolios.


In 2009, Dimensional acquired SmartNest, a retirement planning computer software company.<ref>{{cite news | title=Dimensional adds retirement planning software firm | url=http://www.pionline.com/article/20091202/DAILYREG/912029990 | last = Inklebarger | first =Timothy | work=Pensions & Investments | date=2009-12-02 | access-date=2013-05-12}}</ref> Researcher [[Robert C. Merton]] left SmartNest's board after the purchase and became a Resident Scientist at Dimensional.<ref>{{Cite web|url=https://robertcmerton.com/curriculum-vitae/|title=Curriculum Vitae|website=www.robertcmerton.com|publisher=Robert C Merton|access-date=2021-01-20}}</ref><ref>{{Cite web|url=https://bfi.uchicago.edu/scholar/robert-merton/|title=Robert Merton|publisher=Becker Friedman Institute}}</ref><ref>{{Cite web|url=http://robertcmerton.com/wp-content/uploads/2018/03/next-generation-retirement-planning.pdf|title=Next Generation Retirement Planning}}</ref>
In 2009, Dimensional acquired SmartNest, a retirement planning computer software company.<ref>{{cite news | title=Dimensional adds retirement planning software firm | url=http://www.pionline.com/article/20091202/DAILYREG/912029990 | last = Inklebarger | first =Timothy | work=Pensions & Investments | date=2009-12-02 | access-date=2013-05-12}}</ref> Researcher [[Robert C. Merton]] left SmartNest's board after the purchase and became a Resident Scientist at Dimensional.<ref>{{Cite web|url=https://robertcmerton.com/curriculum-vitae/|title=Curriculum Vitae|website=www.robertcmerton.com|publisher=Robert C Merton|access-date=2021-01-20}}</ref><ref>{{Cite web|url=https://bfi.uchicago.edu/scholar/robert-merton/|title=Robert Merton|publisher=Becker Friedman Institute}}</ref><ref>{{Cite web|url=http://robertcmerton.com/wp-content/uploads/2018/03/next-generation-retirement-planning.pdf|title=Next Generation Retirement Planning}}</ref>


⚫
In November 2020, the firm announced it was augmenting its strictly advisor-access<ref>{{Cite web |title=Work With Us: Financial Advisors |url=https://www.dimensional.com/us-en/financial-professionals/work-with-us/financial-advisors}}</ref> and institutional<ref>{{Cite web |title=Work With Us: Institutions |url=https://www.dimensional.com/us-en/financial-professionals/work-with-us/institutions}}</ref> only mutual fund business model by offering openly-accessed exchange-traded funds.<ref>{{cite web | url=https://www.cnbc.com/2020/12/01/dimensional-mutual-funds-to-launch-as-etfs-heres-why.html | title=Why Dimensional Fund Advisors is converting six of its mutual funds to the ETF format | access-date=24 February 2021 | website=CNBC| date=December 2020 }}</ref><ref>{{cite web | url=https://www.etf.com/sections/daily-etf-watch/dfa-takes-stage-etfs | title=DFA Takes The Stage With ETFs | access-date=24 February 2021 | website=etf.com}}</ref><ref>{{cite news | title=Dimensional Fund ETFs Launch as Quant Plans to Convert Mutual Funds | website=[[Bloomberg News]] | date=18 November 2020 | url=https://www.bloomberg.com/news/articles/2020-11-18/dimensional-etfs-launch-as-quant-plans-to-convert-mutual-funds | access-date=24 February 2021}}</ref><ref>{{Cite news |title=Mutual fund conversions to ETFs set to gather momentum, experts say |last=Johnson |first=Steve |newspaper=Financial Times |date=23 November 2020 |url= https://www.ft.com/content/7a6da469-b2d7-4ad4-b857-b3049752efb6}}</ref>
Dimensional maintains U.S. offices in [[Charlotte, North Carolina]] and [[Santa Monica, California]] and has affiliate offices globally.

== Board of Directors ==
Board of Directors of the general partner of Dimensional Fund Advisors LP: <ref>{{cite web | url=https://www.dimensional.com/us-en/who-we-are/about-us#board-of-directors | title=About Us }}</ref>

* David Booth
* Eugene Fama
* Kenneth French
* John "Mac" McQuown
* Gerard K. O'Reilly
* [[Dave Butler (basketball, born 1964/1965)|Dave Butler]]

Board of Directors, Dimensional Mutual Funds and ETFs, US:<ref>{{cite web | url=https://www.dimensional.com/us-en/who-we-are/about-us#board-of-directors | title=About Us }}</ref>


* Reena Aggarwal, [[Georgetown University]]
⚫
In November 2020, the company announced it was abandoning its strictly advisor-access only mutual fund business model by offering openly-accessed exchanged-traded funds.<ref>{{cite web | url=https://www.cnbc.com/2020/12/01/dimensional-mutual-funds-to-launch-as-etfs-heres-why.html | title=Why Dimensional Fund Advisors is converting six of its mutual funds to the ETF format | access-date=24 February 2021 | website=CNBC}}</ref><ref>{{cite web | url=https://www.etf.com/sections/daily-etf-watch/dfa-takes-stage-etfs | title=DFA Takes The Stage With ETFs | access-date=24 February 2021 | website=etf.com}}</ref><ref>{{cite web | title=Dimensional Fund ETFs Launch as Quant Plans to Convert Mutual Funds | url=https://www.bloomberg.com/news/articles/2020-11-18/dimensional-etfs-launch-as-quant-plans-to-convert-mutual-funds | access-date=24 February 2021}}</ref><ref>{{cite web |title=Mutual fund conversions to ETFs set to gather momentum, experts say |url=https://www.ft.com/content/7a6da469-b2d7-4ad4-b857-b3049752efb6 |website=Financial Times|access-date=24 February 2021}}</ref>
* [[Dave Butler (basketball, born 1964/1965)|Dave Butler]], Co-CEO
* [[Douglas Diamond|Douglas W. Diamond]], University of Chicago
* [[Darrell Duffie]], [[Stanford Graduate School of Business|Stanford University Graduate School of Business]]
* Francis A. Longstaff, [[University of California, Los Angeles|UCLA]]
* Gerard K. O’Reilly, Co-CEO & Co-CIO
* Abbie J. Smith, University of Chicago
* Heather E. Tookes, [[Yale School of Management]]
* Ingrid M. Werner, [[Ohio State University|The Ohio State University]]


== References ==
== References ==
Line 31: Line 53:
*[http://www.davidboothinterviews.com/ David Booth Interviews]
*[http://www.davidboothinterviews.com/ David Booth Interviews]


{{investment-management}}
{{Major asset management companies}}


[[Category:Investment management companies of the United States]]
[[Category:Investment management companies of the United States]]

Latest revision as of 18:57, 21 November 2024

Dimensional Fund Advisors
Company typePrivate
IndustryFinance
Founded1981; 43 years ago (1981)
FoundersDavid G. Booth
Rex Sinquefield
HeadquartersAustin, Texas, United States
Key people
David G. Booth
(Executive Chairman)
Dave Butler
(Co-CEO)
Gerard K. O'Reilly
(Co-CEO)
ProductsMoney Management and Investment
AUMIncrease $794 billion (Sept 30, 2024)[1]
Number of employees
1,500+ (2024)[2]
Websitewww.dimensional.com

Dimensional Fund Advisors, L.P. (branded Dimensional abbreviated DFA[3]) is a privately-owned investment firm headquartered in Austin, Texas. Dimensional was founded in Brooklyn[4] in 1981 by David Booth, Rex Sinquefield and Larry Klotz. The company has 15 international offices in the U.S., Canada, U.K., Germany, Netherlands, Australia, Singapore, and Japan.[5] Dimensional maintains additional U.S. offices in Charlotte, North Carolina and Santa Monica, California.

The company’s founders studied at the University of Chicago under Eugene Fama. Kenneth French is co-chair of the firm's investment research committee.[6] DFA's investment strategy is based on application of the efficient market hypothesis.[7] Dimensional was one of the earliest firms to offer passive investing and "runs the oldest small-cap index fund" in the United States.[8] However, the firm's versions of index funds have the flexibility to trade daily[9] and skew towards smaller company stocks and value stocks; They operate differently from most index funds which rebalance on specific dates and are weighted by market capitalization.[10] This strategy results in regulators, such as the SEC,[11] and some analysts[12][13][14] describing the funds as actively managed. The company offers equity and fixed income mutual funds, Exchange-traded funds, separately managed accounts, and model portfolios.

In 2009, Dimensional acquired SmartNest, a retirement planning computer software company.[15] Researcher Robert C. Merton left SmartNest's board after the purchase and became a Resident Scientist at Dimensional.[16][17][18]

In November 2020, the firm announced it was augmenting its strictly advisor-access[19] and institutional[20] only mutual fund business model by offering openly-accessed exchange-traded funds.[21][22][23][24]

Board of Directors

[edit]

Board of Directors of the general partner of Dimensional Fund Advisors LP: [25]

  • David Booth
  • Eugene Fama
  • Kenneth French
  • John "Mac" McQuown
  • Gerard K. O'Reilly
  • Dave Butler

Board of Directors, Dimensional Mutual Funds and ETFs, US:[26]

References

[edit]
  1. ^ "Dimensional Investing". Retrieved 2024-10-22.
  2. ^ "Dimensional: About Us".
  3. ^ "FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES: DFA INVESTMENT DIMENSIONS GROUP INC". sec.gov. Retrieved 20 March 2021.
  4. ^ "David Booth: Biography".
  5. ^ "Dimensional: About Us".
  6. ^ "Kenneth French: Bio".
  7. ^ "Dimensional Investing | Dimensional Fund Advisors". Dimensional. Retrieved 2018-11-09.
  8. ^ William J. Bernstein (2002). The Four Pillars of Investing: Lessons for Building a Winning Portfolio. McGraw-Hill, ISBN 0071385290, p. 103
  9. ^ "Dimensional Fund Advisors Lists Active Exchange-Traded Funds".
  10. ^ John Rekenthaler (Nov 25, 2020) DFA Is Paying the Price for Its Conviction. Morningstar.com, accessed 19 March 2021
  11. ^ "Registration statement - DIMENSIONAL ETF TRUST". SECURITIES AND EXCHANGE COMMISSION. 16 November 2020.
  12. ^ "DFAU ETF Report". etf.com. Retrieved 20 March 2021.
  13. ^ Liu, Evie (18 November 2020). "Another Fund Manager Enters the World of Exchange-Traded Funds. What's Behind the Trend". Barrons.
  14. ^ Lydon, Tom (December 28, 2020). "The ETF-Mutual Fund Tide is Turning: DFAI and DFAU Switching Sides".
  15. ^ Inklebarger, Timothy (2009-12-02). "Dimensional adds retirement planning software firm". Pensions & Investments. Retrieved 2013-05-12.
  16. ^ "Curriculum Vitae". www.robertcmerton.com. Robert C Merton. Retrieved 2021-01-20.
  17. ^ "Robert Merton". Becker Friedman Institute.
  18. ^ "Next Generation Retirement Planning" (PDF).
  19. ^ "Work With Us: Financial Advisors".
  20. ^ "Work With Us: Institutions".
  21. ^ "Why Dimensional Fund Advisors is converting six of its mutual funds to the ETF format". CNBC. December 2020. Retrieved 24 February 2021.
  22. ^ "DFA Takes The Stage With ETFs". etf.com. Retrieved 24 February 2021.
  23. ^ "Dimensional Fund ETFs Launch as Quant Plans to Convert Mutual Funds". Bloomberg News. 18 November 2020. Retrieved 24 February 2021.
  24. ^ Johnson, Steve (23 November 2020). "Mutual fund conversions to ETFs set to gather momentum, experts say". Financial Times.
  25. ^ "About Us".
  26. ^ "About Us".
[edit]
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