Dimensional UMAs

Cash flow management: The deployment of cash inflows or raising cash as requested by an investor. 

Ongoing cash management: The incorporation of cash considerations into the management of an investment fund, strategy, or portfolio.

Portfolio rebalancing: See rebalancing: specifically for an investment portfolio.

Rebalancing: Refers to trades made in an investment fund, strategy, or portfolio to adjust the weight of funds or individual securities in the investment vehicle.

Tax management: The incorporation of tax considerations into the management of an investment fund, strategy, or portfolio.

Tax efficiency: A measure of the level of tax impact generated by an investment solution or action, such as rebalancing. A tax-efficient solution or action is generally understood to have a lower tax impact on the investor.

This information is provided for registered investment advisors and institutional investors and is not intended for public use. 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.

Tax Management Disclosure

Dimensional may be directed to manage separate accounts in a predetermined tax sensitive manner by utilizing certain measures including, but not limited to, tax loss harvesting, seeking to minimize short-term capital gains, maximizing the qualified portion of dividend income, applying a tax efficient lot selection methodology, and considering tradeoffs among premiums, costs, diversification, wash sale rules, and capital gains in daily portfolio management. Additionally, certain events (including, but not limited to, client requests to update custodians, strategies, or client-directed restrictions; ongoing client activities like contributions, redemptions, and gifts; incorrect custodian account settings; and advisor direction) may limit Dimensional’s ability to engage in tax loss harvesting and to evaluate the tradeoffs outlined above. While Dimensional will regularly monitor accounts for tax loss harvesting opportunities, Dimensional might not engage in daily tax loss harvesting.

In accounts where Dimensional has been directed to incorporate tax management, Dimensional will generally seek to limit potential wash sales. “Wash sales” relate to a tax regulation that seeks to prevent investors from selling securities at a loss and then repurchasing the same or a substantially identical security in a span of 30 days before or after the sale, in order to realize a capital loss for tax purposes. Dimensional may be unable to avoid wash sales or other tax consequences, particularly around client cash flows, corporate actions, or when clients hold substantially identical securities in accounts that are not managed by Dimensional or in accounts that are not linked to the separate accounts Dimensional manages (external accounts).

Dimensional is solely reliant on accurate, thorough, and timely tax lot reporting from custodians. Should custodians fail to provide accurate, thorough, and timely tax lot data, Dimensional may be unable to transact in those accounts. The tax consequences of tax loss harvesting, including wash sale rules, are complex and uncertain and subject to rulings by tax authorities. Dimensional does not provide tax advice, and each client should consult their own tax adviser or accountant. As such, Dimensional will not be responsible for any tax consequences of such transactions. Dimensional does not guarantee any particular tax outcome.