Dimensional Fund Advisors
Joel H. Hefner spearheads the firm's extensive financial advisor conference and seminar system. He also oversees the network of Dimensional lead advisor study groups while frequently speaking at industry and client events across the country. A former senior manager of a Big Five accounting firm, Joel was also the chief portfolio manager for a large fee-only advisory firm, managing more than $1 billion in client accounts.
A CFA Charterholder, Joel graduated magna cum laude with a BA in economics and political science from California State University, Chico, and an MA in economics from the University of California, Santa Barbara.
Dimensional Fund Advisors (DFA) is an investment firm headquartered in Austin, Texas, USA, and has affiliates with offices in the US, Canada, UK, Germany, Netherlands, Australia, Singapore, and Japan. The company was founded in 1981 by David G. Booth and Rex Sinquefield, both graduates of the University of Chicago's School of Business (now known as the Booth School of Business). The company offers over 100 equity and fixed income mutual funds.
Dimensional's objective is to deliver the performance of capital markets and increase returns through portfolio design and trading. 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. Other directors include leading economists such as George Constantinides, Eugene Fama, Kenneth French, and Roger G. Ibbotson. Dimensional hosts a forum where Eugene Fama and Kenneth French express their opinions on topics related to finance and current events. This website is called the Fama/French Forum.
The company rejects market timing and uses a quantitative process to design portfolios and limit trading costs. Their investment philosophy emphasizes "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 $283.0 billion in assets under management as of March 31, 2013. Institutional investors can access Dimensional funds directly or through their consultant. Individual investors can access Dimensional funds through financial professionals, or through their retirement plans (both 401k and defined benefit), or certain 529 college savings plans. The company is owned by its employees, board members and outside investors, which as of 2005 was reported to include Governor Arnold Schwarzenegger of California.
On November 6, 2008, the University of Chicago Graduate School of Business announced a $300 million gift from David Booth in the form of cash and the income stream from Dimensional stock. The school was renamed the University of Chicago Booth School of Business.
On December 2, 2009, Dimensional announced the acquisition of SmartNest, a retirement planning computer software company. The technology offered by SmartNest was developed by Robert C. Merton, who left the company's board after the purchase to become Resident Scientist.