Mutual Funds from Dimensional Fund Advisors
Dimensional has several different types of mutual funds, which invest in domestic and foreign stock as well as fixed-income assets like federal and municipal bonds. The firm does not allow you to buy its mutual funds directly. Instead, you must go through a select group of fee-only advisors. You may also be able to access Dimensional funds through your employer's 401(k) plan.
Mutual Funds Reviews
markh said 2 months ago
Morris, I am a DFA approved advisor and DFA does not provide marketing support for their advisors. What was your basis for that comment. Charles is correct, they are the best funds for prudent investing. Independent advisors choose their funds for many reasons. One has to do with a "non-forecasting" strategy used in all of their products. They are one of the few companies who take this stance. This study from Morningstar best explains why DFA has decided to pair their funds with an advisor:
http://www.ifa.com/12steps/step/step1page2.asp#t13
Morris Armstrong replied 2 months ago
Mark
DFA does provide marketing support by providing a listing of advisors. In addition they provide a great deal of literature, all of which is marketing support.
I have spoken to them in the past and they told me that they would expect close to 100% of my assets to approve me. I simply declined.
They have numerous offerings which span the categories and stars. Their academic research is interesting however since the days of UofCh are long gone I am not sure that you would find any of it earthshattering.
Robert A replied 2 months ago
Mark, while I totally agree with your perspective of DFA (I'm an approved advisor, too), I have to disagree with your claim that they don't provide marketing support. As you know, both the secure site and the public site provide numerous materials to help advisors communicate Dimensional products and ideas effectively. Many of which are posted on various advisors' own websites. I think its a great help to all of us.
As to Morris' assertion that that the days of University of Chicago are long gone, well, you either believe in passive management or your don't. I prefer the former.
markh replied 2 months ago
I see the advisor site as educational material and listing of advisors as a benefit to the consumer. In my opinion, marketing support is more akin to financial support or sponsorship of advertisements, seminars or conferences, like many other mutual fund companies provide.
I prefer to think of passive management as a irrefutable conclusion of peer reviewed research and leave the word "belief" for those who think that someone can see the future, better than the combined opinion of millions of traders.
For anyone subject to the Uniform Prudent Investor Act (UPIA) it is hard to beat Dimensional Fund Advisors offerings.
There are two kinds of diversification referred to in the UPIA and comments - the diversification of multiple non-correlated asset classes and diversification to eliminate non-systematic risk. DFA offers highly defined asset class funds. They also offer core funds to eliminate non-systematic risk.
A careful study of the UPIA will show that proper use of DFA funds is about a close to a "safe harbor" as one can get if you are subject to the UPIA. With DFA Core funds, one can construct a globally diversified equity portfolio with only 3 funds and the portfolio will contain between 10,000 and 12,000 stocks.
The UPIA applies specifically to all Trust owned assets but is also applied by many judicial authorities to any situation in which a fiduciary capacity is involved.
DFA is an ok money manager but they do give marketing support to their advisors and have expectations that they will be used almost exclusively. This would be ok if it were disclosed.
tcanning said about a year ago
Despite having to pay a fee for the advisors, it is well worth it to pay a little up front to know exactly where your money is being invested, especially during these times. All of the fund advisers where extremely knowledgeable and made me feel very comfortable that my savings would rest in their direction.
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