DFA Wins Banner

DFA Wins Another Survey of Financial Advisors

DFA Wins Banner

Market Strategies International just released its 2014 annual Advisor Brandscape report from its Cogent Reports Division™, and once again, Dimensional Fund Advisors (DFA) came out on top. The survey of 1,437 financial advisers was conducted online from February to April of 2014. Advisers were asked to identify their primary provider of mutual funds, and as with the 2013 report, DFA was ranked #1. Specifically, 49% of investment advisors who use DFA funds named DFA as their primary provider. American Funds took second place at 34%, and in third place was Russell Investments at 22%. Below is a list of the top ten fund companies:

Two companies that were in the top ten in 2013 but not in 2014 are PIMCO and OppenheimerFunds. PIMCO has had a problem with investor outflows which we documented here. Two of the companies in the above list whose funds we have evaluated are American Funds and Lord Abbett.

At Index Fund Advisors, it is no surprise to us that DFA came out on top of this survey. For the registered investment advisors that DFA agrees to work with, DFA provides a wealth of research and information that is extremely helpful in advising their clients. The figure below shows several past surveys where DFA was ranked either first or second.

Earlier this year, DFA was the focus of a highly complimentary article in Barrons which we wrote about here and here. While we are always happy to see industrywide reinforcement of what we have held to be true since our inception, we do not rely on these surveys and articles as a basis for our decision to advise our clients in the use of DFA funds. Rather, we rely on our own independent evaluation of the investment landscape which has brought us to the conclusion that DFA has done an excellent job of leveraging academic findings into well-designed and efficiently executed investment products. If you would like to learn more about IFA’s approach to wealth management, please call us at 888-643-3133.