Bond Trading at Dimensional: Seeking an Edge for Better Execution
Dimensional uses a flexible trading approach that aims to achieve better execution—and the results are a testament to the value we deliver for clients.
• Trade cost analysis from 2019 and 2020 shows that, on average, Dimensional bought corporate bonds at lower prices and sold them at higher prices than other market participants trading in the same bonds just before and after our trades.
• Unlike strategies that may require trading in particular securities at a specific time or price, Dimensional’s systematic approach allows us to home in on bonds with similar characteristics but that offer more desirable execution prices.
• The benefits of that approach—transacting at more advantageous prices—are reflected in the returns investors get. This is just one of many positive outcomes from our dynamic investment process.
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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) with its primary place of business in the state of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. References to registration with the SEC do not imply any endorsement or approval of the qualifications of the firm, nor do they imply that the firm’s representatives have attained a particular level of skill or training. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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