Proposed Change to Governance of Dimensional’s Irish UCITS Funds
The purpose of this notice is to give advisers and investors advanced notice of a proposed governance change affecting Dimensional’s Irish UCITS fund range.
Over the past few years, there have been a number of developments in the political, regulatory and economic landscape in Europe which have led to the Central Bank of Ireland (“CBI”) requiring fund management companies to increase their presence in Ireland. As a result of these changes, the boards of Dimensional Funds plc and Dimensional Funds II plc (together, the “Funds”) have conducted a thorough review of the Funds’ operating model and determined it would be prudent and more cost effective for the Funds to convert from self-managed investment companies (“SMICs”) to manager-managed investment companies, rather than the Funds hiring resources themselves.
Therefore, subject to CBI approval, the Funds have determined to appoint Dimensional Ireland Limited (“Dimensional Ireland”) as the management company (“ManCo”) to the Funds and their sub-funds. Once effective, Dimensional Ireland’s appointment as ManCo will include services such as investment management and global distribution of the Funds. Dimensional Fund Advisors Ltd. (“Dimensional UK”) currently acts as the investment manager to the Funds and global distributor. It is intended for Dimensional Ireland’s affiliated entities, such as Dimensional UK, to continue to be involved in the management and distribution of the Funds, but in the capacity as delegated sub-investment managers and sub-distributors of Dimensional Ireland.
The Funds are seeking to complete this change promptly, though the timing is contingent on approval by the CBI and completion of other necessary actions, expected in the new year. If approved, the Fund’s prospectuses and Key Investor Information Documents (“KIIDs”) will be updated to reflect these changes, and formal notice of the date of Dimensional Ireland’s appointment as ManCo to the Funds will be provided to shareholders.
No material increases in costs to investors are expected as a result of this proposed change, nor are we expecting there to be any material changes in the way the Fund’s sub-funds are invested.
Please contact your Regional Director if you wish to discuss this proposed change.
| About Dimensional Dimensional is a global investment manager with more than 40 years of experience going beyond indexing by providing diversified, low-cost solutions that also target higher expected returns. |
Disclosures
FOR PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS OR THE PUBLIC.
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Dimensional to be reliable, and Dimensional has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, a recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is appropriate for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized reproduction or transmission of this material is strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein.
This material is not directed at any person in any jurisdiction where the availability of this material is prohibited or would subject Dimensional or its products or services to any registration, licensing, or other such legal requirements within the jurisdiction.
“Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Japan Ltd., and Dimensional Hong Kong Limited.
RISKS
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.
WHERE ISSUED BY DIMENSIONAL IRELAND LIMITED
Issued by Dimensional Ireland Limited (Dimensional Ireland), with registered office 25 North Wall Quay, Dublin 1, D01 H104, Ireland. Dimensional Ireland is regulated by the Central Bank of Ireland (Registration No. C185067).
Directed only at professional clients within the meaning of Markets in Financial Instruments Directive (MiFID) (2014/65/EU).
WHERE ISSUED BY DIMENSIONAL FUND ADVISORS LTD.
Issued by Dimensional Fund Advisors Ltd. (Dimensional UK), 20 Triton Street, Regent’s Place, London, NW1 3BF. Dimensional UK is authorised and regulated by the Financial Conduct Authority (FCA) - Firm Reference No. 150100.
Directed only at professional clients as defined by the rules of the FCA.
Dimensional UK and Dimensional Ireland issue information and materials in English and may also issue information and materials in certain other languages. The recipient’s continued acceptance of information and materials from Dimensional UK and Dimensional Ireland will constitute the recipient’s consent to be provided with such information and materials, where relevant, in more than one language.
NOTICE TO INVESTORS IN SWITZERLAND: This is advertising material.
JAPAN: Provided for institutional investors only. This document is deemed to be issued by Dimensional Japan Ltd., which is regulated by the Financial Services Agency of Japan and is registered as a Financial Instruments Firm conducting Investment Management Business and Investment Advisory and Agency Business. This material is solely for informational purposes only and shall not constitute an offer to sell or the solicitation to buy securities or enter into investment advisory contracts. The material in this article and any content contained herein may not be reproduced, copied, modified, transferred, disclosed, or used in any way not expressly permitted by Dimensional Japan Ltd. in writing. All expressions of opinion are subject to change without notice.
Dimensional Japan Ltd.
Director of Kanto Local Finance Bureau (FIBO) No. 2683
Membership: Investment Management Association of Japan
FOR LICENSED OR EXEMPT FINANCIAL ADVISORS AND INSTITUTIONAL INVESTORS IN SINGAPORE
This material is deemed to be issued by Dimensional Fund Advisors Pte. Ltd. (UEN:201210847M), which is regulated by the Monetary Authority of Singapore and holds a capital markets services license for fund management.
This advertisement has not been reviewed by the Monetary Authority of Singapore or the Central Provident Fund (CPF) Board.
For use by institutional investors and licensed or exempt financial advisors only in Singapore for internal training and educational purposes and not for the purpose of inducing, or attempting to induce, such institutional investors or financial advisors to make an investment. Not for use with the public.
This information should not be considered investment advice or an offer of any security for sale. All information is given in good faith without any warranty and is not intended to provide professional, investment, or any other type of advice or recommendation and does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Before acting on any information in this document, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. Dimensional Fund Advisors Pte. Ltd. does not accept any responsibility and cannot be held liable for any person’s use of or reliance on the information and opinions contained herein. Neither Dimensional Fund Advisors Pte. Ltd. nor its affiliates shall be responsible or held responsible for any content prepared by institutional investors or financial advisors.
FOR LICENSED FINANCIAL ADVISORS AND INSTITUTIONAL INVESTORS IN HONG KONG
This material is deemed to be issued by Dimensional Hong Kong Limited (CE No. BJE760), which is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.
For use by licensed financial advisors and institutional investors who are “professional investors” (as defined in the Securities and Futures Ordinance [Chapter 571 of the Laws of Hong Kong] and its subsidiary legislation) only in Hong Kong. This material is provided solely for internal training and educational purposes and is not for the purpose of inducing, or attempting to induce, such financial advisors and institutional investors to make an investment nor for the purpose of providing investment advice. Not for use with the public.
Unauthorized copying, reproducing, duplicating, or transmitting of this material are prohibited. This material and the distribution of this material are not intended to constitute and do not constitute an offer or an invitation to offer to the Hong Kong public to acquire, dispose of, subscribe for, or underwrite any securities, structured products, or related financial products or instruments nor investment advice thereto. Any opinions and views expressed herein are subject to change. Neither Dimensional Hong Kong Limited nor its affiliates shall be responsible or held responsible for any content prepared by financial advisors or institutional investors. Financial advisors in Hong Kong shall not actively market the services of Dimensional Hong Kong Limited or its affiliates to the Hong Kong public.