What You Need to Know
- The tech-enabled platform cuts the SMA investment minimum to $500,000 from more than $20 million.
- It integrates hundreds of customization options for clients, including tax-management and ESG preferences.
- The platform was developed in consultation with financial advisors, DFA's primary clients.
Dimensional Fund Advisors has launched a digital platform for separately managed accounts that lowers the minimum investment for SMAs to $500,000 from more than $20 million previously.
The new platform enables financial advisors, who are the firm’s primary clients, the ability to offer more flexible investment solutions within well-designed, highly diversified and cost-efficient portfolios, according to the firm.
The SMA platform integrates hundreds of customization options for clients, including preferences around tax management; environmental, social and governance (ESG) characteristics; and industry and security exclusions. Financial advisors were consulted in its development to make onboarding, launching, managing and monitoring SMAs an easy and scalable process, the firm says.
“The future of wealth management will be marked by continued personalization of investments and client service,” said Dimensional Co-CEO Dave Butler, in a statement. “Our expanded SMA offering is a natural extension of Dimensional’s investment process delivered in a customizable vehicle, and it furthers our aim to offer more choice in how financial professionals serve their clients.”