Dimensional Fund Advisors

Dimensional Fund Advisors
Dimensional Fund Advisors
Type Private
Industry Finance
Founded 1981
Headquarters Austin, TX
Key people David G. Booth, Co-CEO
Eduardo Repetto, Co-CEO
Products Money Manager and Investment Firm
Employees Approx. 500
Website www.dimensional.com

Dimensional Fund Advisors (DFA or Dimensional) is an investment firm headquartered in Austin, Texas with regional offices in Amsterdam, Berlin, London, Santa Monica, Sydney, and Vancouver. The company was founded in 1981 by David G. Booth and Rex Sinquefield, both graduates of the University of Chicago Booth School of Business.

DFA's objective is to "deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading."[1] The company's board of directors includes Myron Scholes who won the Nobel Prize for economics. The late Merton Miller, another Nobel laureate, was also on the board of directors, as was Robert C. Merton before he became the company's Resident Scientist[2]. Other directors include leading economists such as George Constantinides, Eugene Fama, Kenneth French, and Roger G. Ibbotson. DFA hosts a forum where Eugene Fama and Kenneth French express their opinions on topics related to finance and current events.[3] This website is called the Fama/French Forum.

The company rejects stock-picking and market timing and utilizes enhanced indexing to design portfolios and limit trading costs.[4] Their investment philosophy emphasizes five "dimensions" that determine investment results—hence the firm's name. For example, one of their stock funds might overweight small-cap stocks and value stocks, to emphasize the dimensions of "size" and "price."

Dimensional has more than $206.35 billion under management as of 31 December 2010 (2010 -12-31). Its mutual funds are not offered directly to the public, but only to institutional investors and through approved fee-only Registered Investment Advisors. The company is owned by its employees, board members and a number of outside investors, which as of 2005 was reported to include Governor Arnold Schwarzenegger of California.[5] [6]

On November 6, 2008, the University of Chicago Graduate School of Business announced a $300 million dollar gift from David Booth in the form of cash and the income stream from DFA stock. The school was renamed the University of Chicago Booth School of Business.[7][8]

On December 2, 2009, Dimensional announced the acquisition of SmartNest, a retirement planning computer software company. The technology offered by SmartNest was developed by Harvard Business School professor Robert C. Merton, who left the company's board after the purchase to became Resident Scientist.[9]

See also

Notes

  1. ^ DFA's home page: http://www.dfaus.com
  2. ^ Dimensional Bio Page: http://www.dfaus.com/library/bios/robert_merton/
  3. ^ http://www.dimensional.com/famafrench/
  4. ^ "The New Indexing," an article by Eugene Fama, Jr. on DFA's site: http://www.dfaus.com/2009/05/the-new-indexing.html
  5. ^ The truth about Arnold, by Peter Byrne. salon.com, February 15 2005; see also Schwarzenegger’s Next Goal on Dogged, Ambitious Path, by Bernard Weinraub and Charlie LeDuff. New York Times, August 17, 2003.
  6. ^ "The Evolution of an Investor", by Michael Lewis. "Portfolio Magazine", December 2007.
  7. ^ Associated Press, Alum gives U of Chicago $300M for business school
  8. ^ The University of Chicago Booth School of Business
  9. ^ http://www.pionline.com/article/20091202/DAILYREG/912029990

External links


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Dimensional fund advisors — (DFA ou Dimensional) est une société d’investissement basée à Austin, Texas avec des bureaux régionaux à Amsterdam, Berlin, Londres, Santa Monica, Sydney et Vancouver. La société a été créée en 1981 par David G. Booth et Rex Sinquefield, diplômés …   Wikipédia en Français

  • Index fund — An index fund or index tracker is a collective investment scheme (usually a mutual fund or exchange traded fund) that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held… …   Wikipedia

  • List of mutual-fund families in the United States — The following is a limited list of mutual fund families in the United States. A family of mutual funds is a group of funds that are marketed under one or more brand names, usually having the same distributor (the company which handles selling and …   Wikipedia

  • David G. Booth — Born Kansas, United States Alma mater Kansas University (B.A., M.S.) University of Chicago (M.B.A.) Occupation Co founder and CEO, Dimensional Fund Advisors David G. Booth is co founder and co CEO of Dimensional …   Wikipedia

  • Dedicated Portfolio Theory — Dedicated Portfolio Theory, in finance, deals with the characteristics and features of a portfolio built to generate a predictable stream of future cash inflows. This is achieved by purchasing bonds and/or other fixed income securities (such as… …   Wikipedia

  • Rex Sinquefield — Infobox Person image size = 150px name = Rex Sinquefield caption = Rex Sinquefield birth place = Saint Louis, United States occupation = Co founder, Dimensional Fund Advisors Show Me Institute alma mater = University of ChicagoRex Sinquefield, 62 …   Wikipedia

  • Myron Scholes — Chicago school of economics Born July 1, 1941 (1941 07 01) (age 70) …   Wikipedia

  • Eugene Fama — Chicago School Of Economics Eugene Fama (left) winning the inaugural Morgan Stanley American Finance Association Award …   Wikipedia

  • Kenneth French — Infobox Economist school tradition = Neoclassical economics color = #B0C4DE image caption = name = Kenneth French birth = birth date and age|1954|3|10 death = nationality = flag|United States field = Financial economics influences = opposed =… …   Wikipedia

  • Advisor — or adviser may refer to:Finances*Commodity trading advisor, any person who engages in the business of advising others *Financial advisor, also known as a financial planner, a practicing professional who helps people to deal with various personal… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”