EUROPE - Dimensional Fund Advisors has appointed David Salisbury, the former chief executive of beleaguered fund manager Schroders, as its chief executive of its European operations.
The former Schroders CEO will be based in London, and is expected to take a “substantial” equity stake in the business. Salisbury is already well acquainted with the firm, having joined its board in the 1980s. Prior to his appointment as chief executive he acted as a consultant to the firm.
His appointment as Dimensional’s new chief executive is the first phase in the Santa Monica-based firm’s bid to expand into the UK and European institutional and retail markets.
Speaking about his appointment, Salisbury said: I believe that Dimensional's time has come in Europe as institutions and their advisers seek a more scientific way of pursuing above-average long-term returns at a reasonable level of risk.”
“In an environment of lower expected returns, greater risk-consciousnessand growing cost-awareness, I believe Dimensional's products will appeal to both European institutional and retail investors.
Salisbury's appointment comes nearly eight months after his departure from Schroders, a departure brought about by falling profits, client losses and declining investment returns. He spent 27 years at Schroders and had held the top job for just over a year, before the firm replaced him with Michael Dobson.
Founded in 1981 by David Booth and Rex Sinquefield, Dimensional currently has $35bn in assets under management and more than 125 corporate, government, college endowment, charitable and Taft-Hartley clients.
Dimensional’s approach lies the belief that markets are efficient and that investment returns are determined principally by asset allocation, not market timing or stock selection. Whilst conventional index fund strategies employ a similar approach, Dimensional’s strategies do not replicate market indexes.
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