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Tell us who you are Tell us who you are Institution Financial Advisor Individual Investment Solutions Blog About Us About Us Our Company Our People Media Centre Investment Stewardship Log In -- Dimensional Investing is about implementing the great ideas in finance for our clients. Scroll Dimensional Global Firms * at a Glance As at 31 December 2019 38 Years since founding 25 Years in Australia $868B In firmwide assets under management, AUD (in billions) One Investment philosophy 2 Australian Offices: Sydney and Melbourne 1,400+ Employees in 13 global offices US Equity Returns Following Past Downturns Sudden market downturns can be unsettling. Sticking with your plan helps put you in the best position to capture a recovery. Learn more An Update on the Measures We’re Taking Dave Butler and Gerard O’Reilly on the continued measures we’re taking to manage your investments effectively and protect our employees and our community. Learn more Circuit Breakers and Dimensional’s Approach to Trading While circuit breakers can serve a useful function in the markets, Dimensional’s investment process is designed to operate in a range of conditions. Recent market activity hasn’t changed that. Learn more The Coronavirus and Market Declines Amid the anxiety, decades of financial science and long-term investing principles offer guidance. Learn more A Transformed Investor's Reaction to Coronavirus Television producer Dave Goetsch reflects on coronavirus and its implications for long-term investors. Learn more “Dimensional has built a strong partnership with Australian and New Zealand clients over more than two decades, with the joint aim of delivering good outcomes for investors.” Glenn Crane Chief Executive Officer, DFA Australia Limited 01 An enduring belief in the Power of Markets Capital Markets Have Rewarded Long-Term Investors Growth of $1 AUD, Jan. 1985–Dec. 2019 In AUD. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Government Bills are the Bloomberg AusBond Bank Bill Index; Short-Term World Government Bonds is the FTSE World Government Bond Index 1–5 Year hedged to the Australian dollar; World Equities is the MSCI World Index (gross div.); Australian Inflation is measured as changes in the Australian Consumer Price Index. Bill data is provided by Bloomberg. FTSE World Government Bond Index 1-5 Years hedged to the Australian dollar, provided by FTSE Fixed Income LLC. MSCI World Index data provided by MSCI. Inflation data is provided by the Australian Bureau of Statistics. Past performance is no guarantee of future results. At Dimensional, our investment approach is based on a belief in markets. Rather than attempting to predict the future or outguess others, we draw information about expected returns from the market itself—leveraging the collective knowledge of its millions of buyers and sellers as they set security prices. Trusting markets to do what they do best—drive information into prices—frees us to spend time where we believe we have an advantage, namely in how we interpret the research, how we design and manage portfolios and how we service our clients. We take a less subjective, more systematic approach to investing—an approach we can implement consistently and investors can understand and stick with, even in challenging market environments. Learn More Embrace Market Pricing The market is an effective information-processing machine. Market participants buy and sell securities millions of times per day in the world markets. The real-time information they bring helps set security prices. In AUD. Source: Dimensional, using data from Bloomberg LP. Includes primary and secondary exchange trading volume globally for equities. ETFs and funds are excluded. Daily averages were computed by calculating the trading volume of each stock daily as the closing price multiplied by shares traded that day. All such trading volume is summed up and divided by 252 as an approximate number of annual trading days. David Booth Founder and Executive Chairman “The number of managers that can successfully pick stocks are fewer than you’d expect by chance. So, why even play that game? You don’t need to.” David Booth Founder and Executive Chairman 02 Applying insights from FINANCIAL SCIENCE Breakthroughs in Modern Finance 1966 Efficient Market Hypothesis Efficient Market Hypothesis Eugene Fama Nobel laureate, 2013 Professor, University of Chicago Eugene Fama’s efficient market hypothesis marks a pivotal moment for modern finance. The essence of the argument can be described by the simple statement that security prices reflect all available information. 1973 Intertemporal CAPM Intertemporal CAPM Robert Merton Nobel laureate, 1997 Professor, MIT The ICAPM set up a theoretical framework for how multiple sources of risk could arise. It expanded on the one-period CAPM model where the only priced risk was market beta. 1981 Small Cap Investing Small Cap Investing Dimensional Fund Advisors David Booth, Founder and Executive Chairman Dimensional pioneers small cap investing with the launch of its first strategy, which offers investors diversified, efficient access to small company stocks. 1981 Dimensional Fund Advisors LP Founded 1983 Term Structure Term Structure Eugene Fama Nobel laureate, 2013 Professor, University of Chicago Research shows implied forward interest rates provide information on expected term premiums in fixed interest. -- 1992 Value Breakthrough Value Breakthrough Eugene Fama Nobel laureate, 2013 Professor, University of Chicago Kenneth French Professor, Dartmouth College Eugene Fama and Kenneth French develop the three-factor asset pricing model, which identifies market, size and price (value) factors as the principal drivers of equity returns. 2012 Profitability Profitability Eugene Fama Nobel laureate, 2013 Professor, University of Chicago Kenneth French Professor, Dartmouth College Robert Novy-Marx Professor, University of Rochester A body of academic research led to identifying profitability as a dimension of higher expected returns that can be pursued across equity markets. Today Dimensional’s Research and Investment teams draw insight from academia, but what sets us apart is how we interpret, test and apply that research to practical investment solutions for our clients. Tomorrow ... Dimensional was built around a set of ideas bigger than the firm itself. With a confidence in markets, deep connections to the academic community and a focus on implementation, we go where the science leads, and continue to pursue new insights, both large and small, that can benefit our clients. *“Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Ireland Limited, Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services. Eugene Fama and Kenneth French are members of the Board of Directors of the general partner of, and provide consulting services to, Dimensional Fund Advisors LP. Robert Merton and Robert Novy-Marx provide consulting services to Dimensional Fund Advisors LP. Dimensional’s investment approach is grounded in economic theory and backed by decades of empirical research. Our internal team of researchers works closely with leading financial economists to better understand where returns come from. Research has shown that securities offering higher expected returns share certain characteristics, which we call dimensions . To be considered a dimension, these characteristics must be sensible, persistent over time, pervasive...