Issue link: https://info.seic.com/i/1495705
A different investment approach X Index fund managers aim to match index returns, accepting portfolio management and trading constraints that can increase costs. X Traditional managers and quants may rely on predictions or backtested simulations to find mispriced securities or time markets. X Dimensional believes investors can have a successful investment experience without having to outguess the market. The firm trusts market prices and applies a scientific, transparent, and process- driven investment approach to pursue higher expected returns. Focusing on the drivers of returns A belief in the power of markets X Dimensional believes security prices contain reliable information about expected returns. X The firm draws insights from research and prices to emphasize market areas—or dimensions—that drive returns. X Equity dimensions with higher expected returns are small, value, and high profitability companies. Fixed income dimensions are term, credit, and currency. X Dimensional targets these dimensions in low-cost, broadly diversified strategies. 4 Value-added implementation Expert implementation sets Dimensional apart. The firm applies financial science in real-world portfolios through a process that integrates: Applying financial science to investing X Dimensional has forged deep working relationships with top academics in finance. X Nobel laureate Eugene Fama, fellow researcher Kenneth French, and other leading academics are directors and consultants to the firm. X A scientific perspective guides the firm's culture, philosophy, and investment approach. " The research is out there for anybody to access. What distinguishes Dimensional is the way we implement the ideas." David Booth DIMENSIONAL AT A GL ANCE Long-term drivers of STOCK RETURNS 3 COMPANY SIZE Small vs. large companies RELATIVE PRICE Value vs. growth companies PROFITABILIT Y High vs. low profitability companies Long-term drivers of BOND RETURNS TERM Sensitivity to interest rates CREDIT Credit quality of issuer CURRENCY Currency of issuance RESEARCH Gain a better understanding of expected returns by evaluating and testing empirical research PORTFOLIO DESIGN Increase expected returns while allowing for robust risk and cost management PORTFOLIO MANAGEMENT Use current market information to balance tradeoffs between competing premiums and costs TRADING Reduce trading costs by employing a flexible approach to participate in available market liquidity PRICES ALL AVAILABLE INFORMATION $675.8B World Equity Trading in 2022 (Daily Average) 2 X Each day, the global financial markets process millions of trades between buyers and sellers. X These trades embed vast amounts of news, expectations, and information into prices. X Dimensional regards a security's price as the best estimate of actual value—and bases its investment approach on market prices. 41 YEARS SINCE FOUNDING $ 584 B FIRMWIDE ASSETS UNDER MANAGEMENT 1 One INVESTMENT PHILOSOPHY 14 GLOBAL OFFICES