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Q: Why does the academic advice from our leading universities differ so greatly from what Wall Street preaches? A: The economics professors rely on empirical evidence. Wall Street's financial interests are not served by disclosing the failures of their research and money managers. Q: If asset class indexing is so great, why isn't everyone doing it? A: It is estimated that almost 50 % of institutional money has been converted to this strategy. The individual investor is taking notice as well. Indexing is the fastest growing segment in the financial industry. Q: Why is Dimensional Fund Advisors your primary source of asset management? A: As an Independent professional, my sole responsibility is to my client. DFA is the clear leader in asset class management. They have attracted and retained the brightest minds in the financial arena. As our firm's name suggests, we have "allied " ourselves with the very best. Our clients demand it. Q: Why can't I do this myself? A: You can. You would almost certainly do better than utilizing the advice of major Wall Street brokerage firms. However, a qualified Registered Investment Advisor can and should add value above and beyond the fees that he or she may charge. You will also gain access to institutional fund management that is unavailable to retail brokerages and the general public. Q: How is "asset class" investing different than index investing? A: They have more similarities than differences. They are both superior to the active management that Wall Street sells to the retail public. Indexes are very useful tools to benchmark the performance of various investment results, but are not necessarily meant as actual investment vehicles. Asset class investment funds have the ability to dissect the various indexes and eliminate the components that dilute the desired asset class. For example: 75 years of statistics show that "small value" stocks provide the greatest return of any asset class. A retail small value index fund from Vangard might own 2,000 companies. An institutional asset class small value fund from DFA might only own 1,300 companies. The reason is simple: historical evidence demonstrates that the "smallest of the small" creates the majority of the return for this asset class. DFA refines the process and their track record speaks for itself. Learn more about Dimensional Fund Advisors What Allied Portfolio Management can offer you
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