Australia's Largest Multi-Manager Investment House, MLC, Selects Dimensional Fund Advisors to Manage AUD$580 Million

Business Wire, Oct 28, 2002

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--Oct. 28, 2002

Dimensional Hits New Milestone in Australia With Over AUD$1

Billion in Assets Under Management

DFA Australia, the Australian subsidiary of U.S.-based Dimensional Fund Advisors (Dimensional), was selected to manage an initial pool of AUD$580 million by MLC, the wholly owned wealth management subsidiary of Australia's largest bank, National Australia Bank. MLC has AUD$45 billion assets under management.

Dimensional's Australian business now has assets of more than AUD$1 billion, including MLC's AUD$580 million commitment.

"Dimensional's competitive edge flows from their philosophical deep value and small capitalization based beliefs, and the academic rigor that underlies their disciplined investment process," noted Paul Duncan, Portfolio Manager - Equities, MLC Investment Management Division. "MLC believes Dimensional's distinctive approach to investing has a sustainable competitive edge that will continue to add value in the long term."

"Our efficient market approach to investment decisions was a perfect fit for MLC's commitment to refining its equity strategy," added David Booth, Dimensional's Co-chair and CEO.

Dimensional entered the Australian market in 1994 led by Andrew Cain, the Australian firm's director and portfolio manager. Cain was later joined by Graham Lennon, a vice president and portfolio manager, and Steven Garth, a Ph.D. in applied mathematics who also serves as portfolio manager.

Founded in 1981 by David Booth and Rex Sinquefield, Dimensional takes a systematic approach to investment based upon detailed analysis of stock market behavior rather than of individual stocks. Currently, Dimensional manages approximately U.S. $33 billion of institutional and high net worth assets through offices in London, Los Angeles and Sydney. Dimensional's funds provide exposure to value stocks and small companies in both developed and emerging markets, with the aim of achieving consistent but moderate out-performance against conventional benchmarks over long periods of time. The firm maintains close ties with The University of Chicago Graduate School of Business and other key research centers. The firm's board members, consultants and directors of the mutual fund's managed by Dimensional include the University of Chicago's Eugene Fama and Nobel Laureate Myron Scholes, as well as Dartmouth College's Kenneth French and Yale University's Roger Ibbotson.