Those of you who work with AMDG Financial know that we’re big fans of Dimensional Fund Advisors (DFA). The company works with some of the world’s leading financial economists to incorporate theory and research into practical investment solutions for clients. This week, I’m proud to announce that AMDG Financial is featured on DFA’s new “Value of Advice” YouTube channel this month. The Value of Advice channel focuses on why we believe independent financial advice is so important for investors, and it’s dedicated to helping people understand the important role a competent, ethical adviser can have in the investor experience.
If you’re not familiar with DFA, that’s not surprising – it doesn’t work directly with investors. It also doesn’t work with just any advisers. Instead, it invites advisers who share DFA’s investment philosophy to undergo training (at the adviser’s expense) on the academic foundations that underpin DFA’s investment approach. Those advisers then have the ability to invest in DFA’s family of funds. Generally, DFA doesn’t believe in trying to beat the market by picking stocks and bonds. Instead, it uses academic research – by people like Nobel laureate Eugene Fama, Ph.D., and Kenneth French, Ph.D., the Roth Family Distinguished Professor of Finance at Dartmouth’s Tuck School of Business – to structure its portfolios.
Importantly, you should know that DFA does not have fee-sharing arrangements with the advisers who sell its funds. We aren’t DFA sales people. As a fee-only, fiduciary registered investment adviser, AMDG Financial receives its remuneration from our clients according to our agreement with you – not a third party.
At AMDG Financial, we’ve incorporated DFA’s family of funds into our clients’ portfolios because we believe they consistently support a prudent investment strategy. When we search for the most appropriate financial and investment tools, we apply a simple criterion: Use the best tools to manage client wealth in order to help our clients achieve their long-term personal and financial goals. Our clients want a strategy that depends on diversification and rebalancing, not an attempt to time the markets or identify undervalued stocks. DFA’s investment philosophy best serves that approach.
We believe in the credo, “From financial wisdom, better stewardship.” DFA’s founders are also committed to financial wisdom that comes from thorough academic research. I hope you’ll check out the new Value of Advice channel on YouTube, and I encourage you to contact us with any questions you may have about why we choose to invest in DFA’s family of funds.