Dimensional makes its way into the UMA space

Dimensional makes its way into the UMA space
The global asset manager is helping advisors tailor portfolios more efficiently at scale as it evolves its managed accounts platform.
JUL 09, 2024

Dimensional is helping advisors reach a new level of portfolio flexibility as it takes its first steps into the world of UMAs.

On Tuesday, Dimensional Fund Advisors announced that it has launched a unified managed account platform aimed at helping independent advisors scale their operations and customize investments with greater flexibility.

The UMA platform, which evolved from Dimensional’s previous separately managed accounts platform, now includes over a thousand non-Dimensional ETFs in addition to Dimensional’s 38 ETFs and SMAs.

With the expanded capability, the asset manager is empowering more advisors to create personalized asset allocations with a blend of ETFs and direct individual securities, all managed within a single account.

Dave Butler, Dimensional co-chief executive officer, said the move builds on the firm’s 30-year history of helping independent financial advisors deliver better investment experiences while growing their businesses.

“Transforming our SMA platform into a UMA platform supports advisors by reducing operational burdens and increasing their capacity to deepen client relationships at scale,” Butler said in a statement.

The new UMA platform allows advisors to build ETF-only portfolios or combine ETFs with other securities within one account, while Dimensional helps facilitate portfolio management by managing daily asset allocation, tax considerations, and cash balances.

Dimensional’s UMA offering also provides advisors with the tools to create diverse and personalized asset allocations by blending various investment structures. Allocations can be tailored to an investor’s specific needs, including equity and fixed income allocations, regional focus, and expected returns.

Additionally, the SMAs within the platform can be adjusted for individual tax management, ESG values, and preferences regarding specific stocks, industries, sectors, or countries.

“With UMAs, financial advisors can customize and scale by combining different asset classes, securities, and vehicles in a single account,” said Savina Rizova, Dimensional’s co-chief investment officer and global head of research.

The firm’s UMAs also create opportunities for tax efficient investing, Rizova said, by considering all holdings at the tax lot level during portfolio rebalancing, loss harvesting, and addressing specific client situations such as cash raises and gifting. Users can expect enhancements to the UMA platform in the near future, Dimensional said, with plans to introduce mutual fund capabilities and expanded model management functionality.

Latest News

Farther adds $120M firm with science-backed approach to wealth management
Farther adds $120M firm with science-backed approach to wealth management

The latest addition to the tech-driven firm combines wellness and finances.

Cutting back on fun: a third of Americans plan to reduce spending on vices
Cutting back on fun: a third of Americans plan to reduce spending on vices

Your clients are likely to be spending on vices, depending on their generation.

Gold continues to shine, but will jobs data change that?
Gold continues to shine, but will jobs data change that?

Traders are awaiting the latest snapshot of US economic strength.

Veritas could be about to snap up one of Wall Street’s oldest names
Veritas could be about to snap up one of Wall Street’s oldest names

Private equity firm reportedly in talks to make an acquisition.

Trump wants to scrap one of private equities' tax breaks, again
Trump wants to scrap one of private equities' tax breaks, again

Exemption enjoyed by PE and VC firms was under fire in his first term too.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.