An academically proven approach to investing, with David Jones of Dimensional Fund Advisors
Thirty years ago when David Jones started out in financial services, he became acutely aware about the prevalence of high fund management costs and investment solutions that let investors down time after time. He transformed the business he was running to a fee-based practice and discovered Dimensional Fund Advisors. David is now Vice President and Head of Financial Adviser Services EMEA. He explains why and how Dimensional are different to other fund advisors. Dimensional’s investment approach is based on a belief in markets. Rather than attempting to predict the future or outguess others, Dimensional draws information about expected returns from the market itself—leveraging the collective knowledge of its millions of buyers and sellers as they set share prices. Dimensional’s investment approach is also grounded in economic theory and backed by decades of empirical research. This transparent approach helps provide peace of mind so investors can stick with their plan. He argues that you don't need to pick the next best stocks, but can stick with an academically proven approach to investing instead. Listen to the first part of my interview with David on episode 034 of The Retirement Café Podcast. Part 2 follows in episode 035.