Coronavirus and Dimensional’s Business Continuity Plan
Considering recent developments related to the coronavirus, we would like to make you aware of the measures we are taking. Our focus is on protecting the health and wellbeing of our employees, clients, and guests and ensuring we are prepared to effectively manage the investment solutions and deliver the high level of client service we offer in a range of possible scenarios.
Dimensional has a business continuity plan that we regularly review, test, and evolve through time. A team responsible for that plan is meeting regularly to monitor the current situation, enact necessary measures, and ensure we’re implementing preparedness procedures across all aspects of our business. Given the trust you’ve placed in us, we want to offer transparency into key steps we’re taking for preparedness and continuity of service:
Increased Monitoring
Dimensional is closely monitoring information from global entities, including the World Health Organization, the Centers for Disease Control and Prevention (CDC), international health authorities, and risk management and business continuity experts. We are also engaging with a number of industry groups, including the Investment Company Institute (ICI), for idea sharing and best practices.
Additionally, when there is higher market volatility, we monitor conditions that could affect our investment process or strategies, such as liquidity, how trading markets are functioning, and overall market volumes. We are in regular communication with service providers performing critical functions such as transfer agent, mid-office and back-office.
Investment Strategies
While the spread of the coronavirus is unsettling on a human level and has had an impact on the markets’ recent volatility, it has not led to any specific adjustments in our investment process. Dimensional believes that markets are designed to handle uncertainty—prices quickly incorporate information and reflect expectations about a company’s future risks and opportunities, including the potential impact from a viral outbreak. Our approach is to maintain diversified exposure to securities that exhibit the desired characteristics of each strategy, so that the portfolio is positioned to capture premiums when they present themselves. We adhere to that approach in all market environments.
More than 30 years ago, we made the decision to locate investment functions strategically around the world. We currently manage portfolios out of seven offices (three in North America, one in Europe, two in Asia and one in Australia). Globally integrated portfolio management and trading services play important roles in our business, and our operations are designed to function at the highest level in any foreseeable situation. Our core business services can be transferred to other offices and countries if necessary, with little impact to operations. With more than 1,400 employees around the world, we take a team-based approach to all business functions, and we are positioned well to continue the work we conduct on behalf of clients.
Travel and Client Meetings
Dimensional is committed to providing a safe and healthy environment for employees and clients, while maintaining the firm’s high standards in order to protect the assets we manage. As part of this effort, we have implemented a dynamic set of guidelines related to employee travel. Currently, we have suspended business travel for employees outside their home countries without prior approval. We have also encouraged employees to exercise similar caution regarding any plans for personal travel outside of their home countries. Additionally, we are advising employees who have travelled to high-risk areas to stay home for at least 14 days before returning to the office. We have adopted the same guidelines for guests to our offices.
While travel is not generally part of our investment process, it has been an important part of client service over the years. As technological advancements over the past decade have expanded the ways we interact with clients, Dimensional has made extensive investments in virtual meeting capabilities globally. Given the current situation, employees are limiting their domestic business travel, when possible, by shifting meetings from in-person to meetings via phone or video. Through this approach, we are confident we can continue to provide valuable interactions, whatever the setting.
Dimensional Offices
Dimensional maintains a comprehensive Pandemic Preparedness and Response Plan for all its offices and facilities. This plan includes elevated cleanliness standards and targeted resources available to increase awareness and promote hygiene.
We have implemented remote work arrangements for Dimensional offices in high-risk areas including Japan, Singapore, and Hong Kong. We are prepared to expand those arrangements if necessary and are proactively testing remote work capabilities and handoffs across all of our global offices and functions. We have also taken steps to increase the number and variety of our network access points to aid in the performance, resilience, and capacity for employee remote access.
Resources for Clients
Dimensional knows its clients are professional investors who view being prepared for market downturns as a vital part of their role. To help aid our clients in their communications, we recently published an article that explains our approach to investing amid the recent market declines, and we have highlighted other resources on the MyDimensional website that offer perspective on market volatility.
As a team, the staff at Dimensional remain focused on our work: delivering the best investment experience we can for those who have entrusted us with their assets. We are monitoring this dynamic situation closely in conjunction with public health officials and service providers in various regions around the world. We will continue to take the necessary precautions and implement the firm’s business continuity plan as conditions warrant. We take our responsibility to you seriously and are committed to building on the trust we have established with clients over nearly four decades.
The information in this document is provided in good faith without any warranty and is intended for the recipient’s background information only. It does not constitute investment advice, 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. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized copying, reproducing, duplicating, or transmitting of this document are strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein.
“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 Ireland Limited, Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited 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.
UNITED STATES: Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
CANADA: These materials have been prepared by Dimensional Fund Advisors Canada ULC. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Unless otherwise noted, any indicated total rates of return reflect the historical annual compounded total returns, including changes in share or unit value and reinvestment of all dividends or other distributions, and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
AUSTRALIA: This material is issued by DFA Australia Limited (AFS License No. 238093, ABN 46 065 937 671). This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person. Accordingly, to the extent this material constitutes general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.
WHERE ISSUED BY DIMENSIONAL IRELAND LIMITED
Issued by Dimensional Ireland Limited (DIL), with registered office 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland. DIL is regulated by the Central Bank of Ireland (Registration No. C185067). Information and opinions presented in this material have been obtained or derived from sources believed by DIL to be reliable, and DIL has reasonable grounds to believe that all factual information herein is true as at the date of this document.
DIL issues 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 DIL will constitute the recipient’s consent to be provided with such information and materials, where relevant, in more than one language.
WHERE ISSUED BY DIMENSIONAL FUND ADVISORS LTD.
Issued by Dimensional Fund Advisors Ltd. (DFAL), 20 Triton Street, Regent’s Place, London, NW1 3BF. DFAL is authorised and regulated by the Financial Conduct Authority (FCA). Information and opinions presented in this material have been obtained or derived from sources believed by DFAL to be reliable, and DFAL has reasonable grounds to believe that all factual information herein is true as at the date of this document.
DFAL issues 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 DFAL 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 an advertising document.
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.
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 Financial Bureau (Financial Instruments firms) No. 2683
Membership: Japan Investment Advisers Association
FOR PROFESSIONAL INVESTORS IN HONG KONG.
This document is deemed to be issued by Dimensional Hong Kong Limited (CE No. BJE760) (“Dimensional Hong Kong”), 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.
This document should only be provided to “professional investors” (as defined in the Securities and Futures Ordinance [Chapter 571 of the Laws of Hong Kong] and its subsidiary legislation) and is not for use with the public. This document is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence, or otherwise) the publication or availability of this document are prohibited or which would subject Dimensional Hong Kong (including its affiliates) or any of Dimensional Hong Kong’s products or services to any registration, licensing, or other such legal requirements within such jurisdiction or country. When provided to prospective investors, this document forms part of, and must be provided together with, applicable fund offering materials. This document must not be provided to prospective investors on a standalone basis. 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.
Unauthorized copying, reproducing, duplicating, or transmitting of this material are prohibited. This document and the distribution of this document 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 nor its affiliates shall be responsible or held responsible for any content prepared by financial advisors. Financial advisors in Hong Kong shall not actively market the services of Dimensional Hong Kong or its affiliates to the Hong Kong public.
SINGAPORE
This document is deemed to be issued by Dimensional Fund Advisors Pte. Ltd., 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. 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 financial advisors.