Dimensional Fund Advisors’ expanded Separately Managed Accounts (SMA) offering recently surpassed $500 million in assets under management, and the firm has announced additional enhancements to the platform.
Dimensional’s SMA Center, which enables advisors to customize their clients’ investor experience, now includes additional personalization options under tax management, ESG preferences, country exposure, and investment strategies. The ongoing enhancements reflect the firm’s commitment to supporting financial professionals and providing best-in-class customization opportunities within well-designed portfolios.
Dimensional first unveiled its expanded SMA offering in September 2021, broadening access to customized investment solutions by lowering account minimums from more than $20 million to $500,000. Since then, nearly 100 advisory firms have launched more than 200 accounts on the platform.
“Until recently, access to highly customizable SMAs was limited to institutions and ultra-high-net-worth individuals able to commit millions of dollars in liquid assets,” said Dave Butler, Dimensional Co-CEO. “Now, advances in technology are bringing down costs and allowing advisors to deliver more-personalized investment solutions to better suit individual investor needs and preferences.”
The SMA Center integrates a variety of customization options, including preferences around investment strategy; tax management; environmental, social, and governance screens; proxy voting; and industry and security exclusions. Since launching the SMA Center, Dimensional has continued to enhance the platform and expand customization opportunities. Recently, Dimensional expanded its curated list of ESG screens, enabling investors to exclude securities based on governance concerns and private prisons involvement. The platform now also pushes proactive monthly alerts to advisors regarding potential charitable donations, which has been noted as a great example of the offering’s actionable insights.
Dimensional’s web-based SMA Center was custom built in-house using client input and feedback. It empowers financial professionals to offer value-add systematic investment solutions that are more flexible, scalable, and personalized to more investors. Dimensional continues to enhance the SMA Center user interface with streamlined screening menus and more intuitive operational features.
The SMA Center is a true fintech solution that allows advisors to customize investment options and review instant analysis to assess potential tradeoffs, allowing them to design, onboard, and manage their clients’ SMAs efficiently. More than 90% of account holders are applying some form of tax management, while 35% are screening for at least one ESG issue.
“Dimensional’s expanded SMA offering uses the same systematic investment approach we have refined and advanced for more than 40 years, adding layers of customization and convenience that we believe go beyond other solutions in the market,” said Savina Rizova, Global Head of Research at Dimensional. “In using the SMA Center, financial professionals can implement tailored solutions within well-designed, highly diversified, and cost-efficient portfolios.”
For more about Dimensional SMAs, click here.