Dimensional Launches UMA Platform
Dimensional announced today the launch of a unified managed account (UMA) platform, which enables independent advisors to scale with Dimensional or non-Dimensional ETF model management and customize with Dimensional SMAs.
The firm transformed its separately managed account (SMA) platform into a UMA platform, which now includes more than a thousand non-Dimensional ETFs, in addition to Dimensional’s full suite of 38 ETFs. Dimensional UMAs provide flexibility to build personalized asset allocations while offering integrated multifaceted tax management and operational efficiency.
“For more than 30 years, Dimensional has helped independent financial advisors deliver a better investment experience while growing their businesses,” said Dave Butler, Dimensional Co-Chief Executive Officer. “Transforming our SMA platform into a UMA platform supports advisors by reducing operational burdens and increasing their capacity to deepen client relationships at scale.”
The UMA offering enables advisors to build ETF-only portfolios using Dimensional and non-Dimensional ETFs—or combine ETFs with direct individual securities—all in one account. Dimensional manages daily asset allocation, tax considerations, and cash balance. A single account enables streamlined and consolidated portfolio management and monitoring.
Dimensional UMAs also offer advisors the ability to create a variety of personalized asset allocations by combining different investment structures in one account. Advisors can use ETFs and Dimensional SMAs to customize an investor’s equity and fixed income allocations, regional focus, and emphasis on higher expected returns. SMAs within the platform can be customized for individual tax management needs, ESG values, and individual stock, industry, sector, or country preferences.
“With UMAs, financial advisors can customize and scale by combining different asset classes, securities, and vehicles in a single account,” said Savina Rizova, Dimensional’s Co-Chief Investment Officer and Global Head of Research. “Dimensional UMAs also offer enhanced tax efficiency by considering all holdings in the account at the tax lot level when rebalancing, loss harvesting, and addressing specific client needs, such as cash raises and gifting.”
The firm plans to include mutual fund capabilities and to expand the model management functionality soon.
Disclosures
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at dimensional.com. Dimensional funds are distributed by DFA Securities LLC.
Risks include loss of principal and fluctuating value. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.
Dimensional is not a tax advisor and does not know the effective tax position of any individual client. Tax management is limited to managing the account’s investment approach in a tax-sensitive manner. Dimensional does not provide any investment, tax, or financial advice. Investors should consult with their financial advisors and tax professionals about their individual circumstances.