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Dimensional Investing is about implementing the great ideas in finance for our clients.

Dimensional Global Firms* at a Glance
As of September 30, 2016

Years since founding

In firmwide assets under management, CAD (in billions)

Offices in eight countries

Employees globally

01

An enduring belief in the 

Power of   Markets

Capital Markets Have Rewarded
Long-Term Investors
Growth of $1 CAD, Jan. 1985–Dec. 2015

In CAD. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Treasury Bills are the Canadian One-Month Treasury-Bills; Short-Term World Government Bonds Index is the World Government Bond Index 1–5 Yr hedged to the Canadian dollar; World Equities is the MSCI World Index (gross div.); Canadian Inflation is measured as changes in the Canadian Consumer Price Index. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright ©TSX Inc., all rights reserved. World Government Bond Index 1–5 Yr data is provided by Citigroup. MSCI World Index data provided by MSCI. Inflation data is provided by The Organization for Economic Co-operation and Development. Past performance is no guarantee of future results. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Any indicated rates of return are historical annual compounded total returns, including changes in share or unit value and reinvestment of all distributions, and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

At Dimensional, our investment approach is based on a belief in markets.

Rather than relying on futile forecasting or trying to outguess others, we draw information about expected returns from the market itself—letting the collective knowledge of its millions of buyers and sellers set security prices.

Letting markets 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. It means 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.

Embrace Market Pricing
Trading Volume

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 USD. Source: World Federation of Exchanges. Global electronic order book (largest 60 exchanges).

David Booth
David Booth
Founder and Co-Chief Executive Officer, Dimensional Fund Advisors LP
“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.”

02

Applying insights from 

Financial Science

Breakthroughs in Modern Finance
  • 1966Efficient 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.
  • 1973Intertemporal 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.
  • 1981Small Cap Investing
     
    Small Cap Investing
    Dimensional Fund Advisors
    David Booth, Founder
    and Co-CEO
    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
  • 1983Term 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 income.
  • 1992Value 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.
  • 2012Profitability
     
    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., and Dimensional Japan Ltd.

Eugene Fama and Kenneth French are members of the Board of Directors for 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 that offer higher expected returns share certain characteristics, which we call dimensions. To be considered a dimension, these characteristics must be sensible, persistent over time, pervasive across markets, and cost-effective to capture.

The Evolution of Indexing and Dimensional
Eugene Fama
Eugene Fama
Nobel laureate, 2013 Professor, University of Chicago; Director and Consultant, Dimensional Fund Advisors LP
“We’re very careful in looking at new research that comes along and making sure it’s robust.”

Understanding what drives returns is the starting point. From here, we focus on fine-tuning our method of capturing them.

We structure broadly diversified portfolios that emphasise the dimensions of higher expected returns, while addressing the tradeoffs that arise when executing portfolios.

Every day our portfolio managers and traders seek to balance costs against expected returns and diversification. We work for the slightest expected gain, as every incremental improvement can add up over time.

The Gap Between Reality
and a Model
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Limitations of the Model False Positives Insights MODEL REALITY
Academic models provide useful insight, but they are incomplete. It’s in the gap between reality and a model where sound judgment and experience matter. Play Watch Dimensional Stories: Models
(03:07)
Eduardo Repetto
Eduardo Repetto
Co-Chief Executive Officer; Co-Chief Investment Officer, Dimensional Fund Advisors LP
“The money we manage is not our money—it’s our clients’ past and their future. We take that responsibility very seriously.”

03

A commitment 

to Our Clients

The Global Financial Crisis and Its Aftermath
A key to a good long-term investment experience is being able to stay with your investment philosophy, even during tough times. During the rocky 2008–2012 period, many investors sold their equity funds. Within the Dimensional Global Firms*, equity funds had inflows throughout the period, which could suggest that in aggregate investors were prepared to withstand the market’s movements in order to pursue long-term results.
Equity Flows Mobile

IMPORTANT INFORMATION: Tracking a USD investment in global equities (MSCI World Index) to illustrate the uncertainty in markets. Past performance is no guarantee of future results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Returns may increase or decrease a result of currency fluctuations. Source reference: In USD. MSCI World Index data provided by MSCI. Dimensional Global Equity Flows include flows from all Dimensional commingled funds with the exception of Balanced, Target Date and Fixed Income funds. A flow is any trade that is a purchase sell, exchange purchase, exchange sell, dividend, long-term capital gain or short-term capital gain. This excludes any flows from other DFA mutual funds. Each flow is converted to USD on the trade date using WM Reuters London Close FX rates.

Dimensional Investing is about providing a successful investment experience.

That means more than considering investment returns. It means offering peace of mind knowing that a transparent approach backed by decades of research is powering every decision.

Markets go up and they go down. The goal of Dimensional Investing is to help people be prepared, so they can stick with their plan.

Institutional Investor’s
2016 Money Masters
Dave Butler
DAVE BUTLER
Head of Financial Advisor Services, Dimensional Fund Advisors LP
“The client experience has always been, and will continue to be, why we do what we do.”

*“Dimensional Global Firms” 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., and Dimensional Japan Ltd.

These materials have been prepared by Dimensional Fund Advisors Canada ULC, manager of the Canadian Dimensional funds. This information is provided for educational purposes only and should not be construed as investment advice or an offer of any security for sale.

Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Any indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Dimensional Fund Advisors Canada ULC has certain provincial registrations, and Dimensional Fund Advisors LP is an unregistered exempt international investment fund manager in certain provinces, and other than the aforementioned, none of the other Dimensional Global Firms are currently licensed by, registered with, or supervised by any provincial securities regulator. There is no intention to offer or sell products or services in countries or jurisdictions by any Dimensional Global Firms where such offer or sale would be unlawful under the relevant domestic law.

Robert Merton, Ken French, Eugene Fama and Robert Novy-Marx provide consulting services to an affiliate of Dimensional Fund Advisors Canada ULC. Ken French and Eugene Fama also serve on the board of directors of an affiliate of Dimensional Fund Advisors Canada ULC.

Profitability is a measure of current profitability, based on information from individual companies’ income statements