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Dimensional Perspectives


1. The advice industry shifts from ringing up sales to building client relationships.

With the rise of the independent financial advisor, a new financial advice model takes hold—one that puts the client at the centre and changes the way advisors charge for services.

 

2. The regulatory environment signals that advisors ought to act in clients’ best interest.

Regulatory rules obligate registered investment advisors to act in the best interests of their clients, which sets a higher standard for serving them.

 

3. Investment advice evolves into comprehensive wealth management.

Over time, investment advice advances beyond individual security selection to encompass a broader scope of services, from asset allocation to wealth management. Advisors focus on understanding each client’s personal circumstances and objectives.

 

4. Financial advisors collaborate with other professionals on behalf of their clients.

To help clients manage multiple aspects of wealth, advisors take a central role in coordinating the services of accountants, lawyers, investment managers, insurance providers, and other third-party professionals.

 

5. Improved client discovery tools enable more relevant plan design.

Advisors apply new methods to identify a client’s financial objectives, attitude toward risk, return expectations, and financial traits. The insight informs more advanced financial planning and investment approaches.

 

6. New technologies and research help clients better understand probabilities of outcomes.

With advanced research and robust analytics tools, advisors offer clients a more sophisticated view of the range of possible outcomes associated with different investment and personal budgeting strategies.

 

7. Advisors build cost-efficient, globally diversified portfolios for individual investors.

Strategies based on financial science offer building blocks to help advisors design customised portfolios that systematically pursue capital market returns.

 

8. Digital technologies transform the ways advisors communicate with clients, prospects, and the world.

Access to global information networks expands an advisor’s influence as publisher, educator, thought leader, and coach. Serving in these multiple roles helps to create more informed, disciplined investors.

 

9. Advisors join professional communities where they share best practices and ideas that can benefit clients.

These communities offer investment education, quantitative tools, and professional networking opportunities to help advisors build and manage their practices while elevating the client experience.

 

10. Advisors develop succession plans to ensure business continuity for their clients. 

Advisors recognise the importance of planning for business and leadership succession, which can help provide continuity of services and support for both current and future clients.

 

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References to “Dimensional” in this material include the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd, Dimensional Ireland Limited, Dimensional Japan Limited, and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.

 

This material has been prepared by Dimensional Fund Advisors LP and is provided in Australia by DFA Australia Limited (AFS Licence No.238093, ABN 46 065 937 671).

 

This material is made available for educational purposes, and it is not to be construed as a recommendation of any particular security, strategy, or investment product.