Dimensional Fund Advisors, DFA, is changing a few lines of code within is volumes of algorithms. Personal financial advisors account for $164 billion of the $300 billion of its separately managed accounts. Why the change? Because twenty years ago there was twenty years less data. For more detail as to whether or not this is a watershed event for a company that is religious about passive investing, read Brooke Southall’s article from RIABiz:
Dimensional Fund Advisors is a company that continues to experience stunning success — but not because it does anything exciting per se. DFA is a boring company, basically selling index funds with a layer of intelligence baked in. But it sells a tremendous amount of those funds and its steady nature is part of its charm and why it is so trusted. That dare-to-be-dull bearing of the Austin, Texas-based company with about $300 billion of managed assets helps explain why the company sent no less than its co-CEO to California to explain that, in effect, a couple lines of code are being changed in a tome of algorithms. Eduardo Repetto employed a combination of humor, numbers and deft use of an Argentinian accent to get his point across that ‘profitability’ as a DFA additive to portfolios is a good thing and a ‘big deal’.
Continue reading Brooke Southall’s article at RIABiz