DFA adds retirement planning software firm

Dimensional Fund Advisors acquired retirement planning computer software company SmartNest from DJ&M Co., confirmed Darla Hastings, DFA spokeswoman.

Terms were not disclosed.

The technology offered by SmartNest was developed by Harvard Business School professor Robert C. Merton.

Ms. Hastings said in an interview that SmartNest technology advises 401(k) plan participants on investment decisions based on their own personal profiles, advises them to adjust their retirement savings plans when necessary and reduces investment risk once they meet their retirement goals.

Ms. Hastings said the technology will be made available to DFA employees and DC plan sponsors.

“The defined contribution plans most employers offer today place an enormous burden on workers,” Mr. Merton said in a DFA news release. “Most of these people don't have the expertise required to make sound decisions about investing. This program takes the burden of investing off of them. They focus just on personal questions, such as how much they can afford to contribute and when they hope to retire, and the program handles the mechanics of investing for them.”

DFA had $153 billion in assets under management as of Oct. 31.