Broker Check

Redefining Financial Advice

December 17, 2019
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Dimensional Fund Advisors ("DFA") is unique in the investment management industry--their mutual funds are not available to retail investors or through traditional brokers who work on sales commissions.  

30 years ago, Dimensional decided to partner with a distinct segment of the financial advisor industry: Independent, Registered Investment Advisor (RIA) firms who acted as a fiduciary and in their clients' best interests.  Dimensional believed that individual investors who aligned themselves with a trusted and ethically-minded advisor to create a plan would be more likely to stick with it consistently, resulting in a better and more satisfying investment experience.  

Recently Dimensional produced a short video with several advisors who have worked with Dimensional for several decades, including my friend and former colleague Jeff Troutner.  Watch it here:

I often get questions about the "arrangement" between Servo and Dimensional.  My answer is always the same: There are no fee or revenue sharing agreements between Dimensional and the financial advisors, like Servo Wealth Management, who use their funds.  We are free to use the investments we believe are in the best interests of our clients and most effectively deliver the intentions outlined in our Investment Policy Statements.  If those are Dimensional Funds, we will use those.  If better options exist, we will go in another direction.

How have Dimensional's funds done over the last few decades?  A review of their performance over the last 20 years through September reveals that in almost every case, they have outperformed their index by a noticeable amount.  I'm not aware of a more successful track record across over a dozen mutual funds during this period of time; Dimensional's returns have been unprecedented.  These results are to be celebrated--better returns can make it easier for you to achieve your goals, whether that means accomplishing them sooner or accomplishing more of the goals and aspirations that are important to you.

Together with Dimensional and other advisors in the RIA segment of the financial industry, I remain passionate about redefining financial advice for individuals and families who truly deserve the best financial guidance and counsel.

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Past performance is not a guarantee of future results. Index and mutual fund performance includes reinvestment of dividends and other earnings but does not reflect the deduction of investment advisory fees or other expenses except where noted. This content is provided for informational purposes and should not to be construed as an offer, solicitation, recommendation or endorsement of any particular security, products, or services.