SMAs: Beyond Indexing and Tax Loss Harvesting – Dimensional – 9.20.22

Summary:

Now On Demand

Separately managed accounts (SMAs) enable investors to tailor investment strategies to better fit their financial goals, preferences, and values. Direct indexing has become a popular way to combine broad diversification with personalized investing. But trying to closely track an index can limit an SMA’s return potential.

By applying a systematic yet flexible daily investment approach, SMAs can go beyond indexing and target higher expected returns in a reliable and low cost manner. Moreover, SMAs that apply a multifaceted tax management approach can go beyond tax loss harvesting to provide investors with greater tax efficiency.

Topics To Be Covered:

• Designing SMA strategies to combine value-added investment solutions with thoughtful personalization.
• How Dimensional SMAs continually balance the tradeoffs among premiums, taxes, costs, and diversification in pursuit of better pre- and post-tax outcomes.
• The potential advantages of applying multifaceted tax management in all aspects of implementation, including portfolio transition, strategy design, and daily management of capital gains, losses, and dividend income.

Speakers:

Gerard O’Reilly serves as Co-Chief Executive Officer and Chief Investment Officer of Dimensional Fund Advisors LP and is a Dimensional Director. He was named Co-CEO in 2017 and has been with Dimensional since 2004. Along with Co-CEO Dave Butler, Gerard guides the firm’s vision and strategy through daily oversight of the company’s people and processes.

Since joining the firm, Gerard has been instrumental in the evolution of Dimensional’s systematic approach to creating and implementing investment solutions. He was formerly Head of Research, managing the firm’s rigorous, scientific approach to interpreting, testing, and applying research in portfolios. He is a member of the firm’s Investment Research Committee, which reviews potential investment strategy enhancements, and a member of the Investment Committee, which oversees portfolio and account management. He also serves on the Boards of Dimensional’s US mutual funds and exchange-traded funds.

Prior to joining Dimensional, Gerard obtained his PhD in aeronautics from the California Institute of Technology. He holds a master of science degree in high performance computing from Trinity College Dublin in his native country of Ireland, where he also received a first class honors degree in theoretical physics and was a recipient of the Foundation Scholarship.

Mark Gochnour is Head of Global Client Services, leading a team dedicated to providing strategic resources to help Dimensional’s clients grow and improve their businesses. He guides the group’s strategy and is deeply involved in the development of Dimensional’s conferences and events, the design of its practice management curriculum, and the coordination of its professional communities. Mark also helps supervise a group of Regional Directors outside the US to ensure the evolving needs of clients are met and aligned globally.

Mark has been with Dimensional since 1998 in a range of roles, including nearly a dozen years spent as a Regional Director working directly with some of the largest financial advisory firms in the US. He is passionate about making a positive impact in investors’ lives, and about sharing his experiences and expertise to help others. Mark is a frequent speaker at conferences and industry events on topics such as capital markets, practice management, client communication, and investor discipline.

Mark is a CPA and a CFA^® charterholder with a bachelor’s degree in accounting. Prior to joining Dimensional, he worked in public accounting and corporate finance.