Dimensional UMAs

A world of opportunity to scale and customize

With a unified managed account (UMA), advisors can combine different investment vehicles in one personalized account for each of their clients—and look to Dimensional for daily portfolio management.
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Flexible Asset Allocation

Using a UMA structure, advisors can choose from a range of offerings to meet client needs: Dimensional direct-equity separately managed accounts (SMAs); Dimensional exchange-traded funds (ETFs) and mutual funds; and an extensive list of non-Dimensional ETFs.


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Dimensional UMAs: One Account, a World of Opportunity

Multifaceted Tax Management

Dimensional offers an array of tax management options to address each investor’s tax circumstances. We go beyond tax loss harvesting, providing an integrated, holistic approach that aims to improve tax outcomes for investors.


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Dimensional’s Multifaceted Tax Management of SMAs

Scaled, Efficient Operations

Within each account, Dimensional monitors asset allocation, tax considerations, and cash balances on a daily basis, applying decades of expertise in multi-asset-class investing. Relying on Dimensional for daily oversight gives advisors more time to focus on their clients and their business.

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Dimensional UMAs: One Platform, a World of Opportunity to Scale and Customize

Request a Demo of our UMA Platform

Connect with a Dimensional representative to request a demo or learn how our UMA Platform can help you build flexible, scalable, personalized solutions for clients.

 

Send us a message, or contact our client support team at (512) 306-4308.

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Build custom asset allocations to meet evolving client needs

Asset allocations can be tailored using Dimensional SMAs; Dimensional ETFs and mutual funds; and an extensive list of non-Dimensional ETFs. Dimensional Wealth Model allocations can also be integrated into a Dimensional UMA, supporting advisors with a research-driven, systematic framework for global portfolio construction.

Circle graphic illustrating the composition of a UMA with six items and including the text “Dimensional UMA: custom allocations holistically managed by Dimensional.” The six bulleted items are: Dimensional equity SMAs, Dimensional equity mutual funds and ETFs, Dimensional real estate mutual funds and ETFs, Dimensional fixed income mutual funds and ETFs, non-Dimensional ETFs, individual stocks. Three example-construction pie charts are included, showing SMA only, funds only, and SMA plus funds.

Enhance and customize your service offering for tax-sensitive clients using Dimensional’s multifaceted tax management approach that goes beyond tax-loss harvesting

Select from a range of tax management options to address a client’s unique and evolving tax circumstances. Dimensional can holistically manage tax impact in the account by considering both capital gains and dividend income.


Each day, Dimensional monitors SMA and fund holdings at the tax lot level for tax-efficient rebalancing opportunities, meaningful tax-loss harvesting, and wash sales.


We also work with advisors to manage tax-efficient cash raises, charitable giving opportunities, and any requests to realize gains.

Table with four columns labeled No Tax Management, Light Approach, Standard Approach, Aggressive Approach. Row 1 is labeled Return Emphasis, with No Tax Management as pre-tax, Light Approach as after-tax, Standard Approach as after-tax, and Aggressive Approach as after-tax. Row 2 is Avoid Wash Sales, with No Tax Management, Light Approach, Standard Approach, and Aggressive Approach checked. Row 3 is Seek to Avoid Short-Term and Total Capital Gains, with Light Approach, Standard Approach, and Aggressive Approach checked. Row 4 is Aim to Maximize Qualified Gains, with Light Approach, Standard Approach, and Aggressive Approach checked. Row 5 is Monitor Securities for Gifting Opportunities, with Light Approach, Standard Approach, and Aggressive Approach checked. Row 6 is Level of Loss Harvesting Activity, with Light Approach as targeted, Standard Approach as moderate, and Aggressive Approach as strong. Row 7 is Primary Use of Net Losses, with Light Approach as reduce overweight positions and Standard Approach and Aggressive Approach as offset external gains. Row 8 is Potential Uses, with No Tax Management as IRA or other tax-advantaged account, Light Approach as reduce highly overweight positions and target net zero total capital gains, Standard Approach as harvest meaningful losses and ongoing external gains, and Aggressive Approach as harvest aggressive net losses and significant external gains (e.g., from sale of home or business).

Incorporate an SMA to further personalize and manage taxes

Our direct equity SMA starting strategies are designed to meet a wide variety of needs across regions, asset classes, and expected return preferences. The US All Cap Equity Market starting strategy is designed for investors who want returns similar to the overall market without the potential inefficiencies of indexing. The US All Cap Core starting strategies go a step further with varying levels of emphasis on stocks with higher expected returns. Core starting strategies are also offered in Global and Global ex US regions for investors seeking a globally diversified portfolio.

Our direct equity SMA starting strategies are designed to meet a wide variety of needs across regions, asset classes, and expected return preferences. The US All Cap Equity Market starting strategy is designed for investors who want returns similar to the overall market without the potential inefficiencies of indexing. The US All Cap Core starting strategies go a step further with varying levels of emphasis on stocks with higher expected returns. Core starting strategies are also offered in Global and Global ex US regions for investors seeking a globally diversified portfolio.

Dimensional Wealth Models offer a research-driven framework for portfolio construction

Using Dimensional Wealth Models as guides, advisors can build strategic asset allocations on our UMA Platform.

 

Dimensional offers six model sets: Core Market, Core, Core Plus, Tax-Sensitive, Sustainability, and Social. Within each model set, advisors can choose from six equity/fixed income allocations designed to address specific investment goals and risk preferences.

Graphic with the label “Portfolio allocations range from 100% fixed income to 100% equity, in increments of 20%,” illustrating the relationship between higher expected risk and higher expected return from least to greatest. 100% fixed income is least risk and return, followed by 20% equity, 80% fixed income; 40% equity, 60% fixed income; 60% equity, 40% fixed income; 80% equity, 20% fixed income; and 100% equity.

Expand your service offering by outsourcing to Dimensional

Dimensional UMAs help advisors enhance their value offering while scaling their business for growth. By outsourcing to Dimensional, advisors can reduce time spent on critical portfolio management activities like daily trade execution, rebalancing, and management of taxes and cash flows.

Intersecting circles with the labels portfolio rebalancing, tax management, cash flow management, and transition.

Glossary

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

 

Portfolio rebalancing: Rebalancing specifically for an investment portfolio. (See Rebalancing.)

 

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.

Disclosures

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.

 

Certain UMA account types such as IRAs, solo 401(k)s, and other non-ERISA tax-advantaged accounts may only select no tax management when choosing a tax management approach.

 

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. For accounts that select light tax management, Dimensional will seek to reduce highly overweight positions if there are losses available to offset any potential gains. If losses are not available, Dimensional may not sell down the overweight positions unless directed.

Dimensional will generally seek to limit potential wash sales in all accounts. “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. 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 advisor or accountant. As such, Dimensional will not be responsible for any tax consequences of such transactions. Dimensional does not guarantee any particular tax outcome.