DFA International Core Equity Fund

Transcription

1 For the period ended 18 The interim management report of fund performance contains financial highlights but does not contain either the interim financial statements or annual financial statements of the DFA International Core Equity Fund (the Fund or Portfolio ). You can get a copy of the interim financial statements or annual financial statements at your request, and at no cost, by calling Dimensional Fund Advisors Canada ULC ( Dimensional ) collect at , by writing to Dimensional at 745 Thurlow Street, Suite 21, Vancouver, BC, Canada, V6E C5 or by visiting Dimensional s website at ca.dimensional.com or SEDAR at Unitholders may also contact Dimensional using one of these methods to request a copy of the Fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure.

2 Results of Operations The Fund held approximately 4, securities in 21 developed markets and approximately 3, securities in 21 emerging markets as at 18. In general, average cash exposure throughout the period was less than 1% of the Net Asset Value in the Fund. As a result of the Fund s investment strategy, performance was determined principally by broad trends in the non-u.s. and non-canadian international equity markets rather than the behavior of a limited number of stocks. For the six months ended 18, the value of the Canadian dollar generally depreciated against most of the local currencies of the Fund s holdings, producing a positive impact on unhedged Canadian dollar-denominated returns. The returns of the Fund s hedged units were negatively impacted by the depreciation of the Canadian dollar. For the six months ended 18, total returns were.23% for the Class F units, -2.16% for the Class F(H) units, -.3% for the Class A units, -2.7% for the Class A(H) units,.46% for the Class I units, -1.99% for the Class I(H) units, and.98% for the MSCI EAFE plus Emerging Markets Index (net div.) ( Index ). Each of the Fund s unhedged units underperformed the Index. Differences in the valuation timing and methodology between the Fund and the Index detracted from relative performance. The Fund prices foreign exchange rates at the closing of the Canadian markets while the Index uses rates at 4 p.m. London time. The Fund also may use fair value pricing to price certain portfolio securities at the closing of the Canadian markets while the Index uses local market closing prices. The Fund s greater emphasis on low relative price (value) stocks also had a negative impact on relative performance, as value stocks underperformed high relative price (growth) stocks for the period. Each of the Fund s hedged classes underperformed their corresponding unhedged classes as well as the Index due to the overall depreciation of the Canadian dollar versus the currencies that the hedged classes hedge against. All returns for the Index are unhedged and are not diminished by management and administrative expenses associated with managing a portfolio of securities. Net returns of the Class A and Class A(H) units were diminished by a trailer fee payable to securities dealers. Dealers generally pay a portion of these fees to investment professionals for services they provide to their clients. appointed as Ultimate Designated Person of Dimensional effective June 1, 18. Related-Party Transactions Dimensional is the manager, trustee, and principal portfolio advisor of the Fund. As manager, Dimensional is responsible for the overall management and administration of the Fund. As trustee, Dimensional holds legal title to the Fund s investments in trust for the Fund s unitholders. For its services, Dimensional receives management fees that are calculated as a percentage of the average Net Asset Value of the Fund. These fees are calculated daily and payable monthly. As principal portfolio advisor, Dimensional is responsible for managing the investment portfolio of the Fund directly or through sub-advisors. Dimensional has retained its ultimate parent company, that Dimensional Fund Advisors LP ( Dimensional U.S. ), to act as the Fund s sub-advisor. Dimensional U.S. is responsible for investment analysis and decision making, implementing securities transactions, selecting broker-dealers, acquiring research information, voting proxies, and monitoring the Fund s investment guidelines. The fees of the sub-advisor are paid by Dimensional. Dimensional has adopted written policies and procedures with respect to the supervision and monitoring of the services provided by Dimensional and Dimensional U.S. and received standing instructions from the Fund s Independent Review Committee ( IRC ) to act in accordance with these policies and procedures. These standing instructions require Dimensional to report to the IRC any material exceptions to compliance with these policies and procedures. Recent Developments Dimensional s core investment principle continues to be that there are systematic differences in expected returns among securities and that current market prices and fundamentals contain relevant information about those differences. Dimensional uses information in current market prices throughout the entire investment process to identify those systematic differences and use them to build and implement portfolios that pursue higher expected returns. Stephen A. Clark was appointed as Chairman of Dimensional effective June 1, 18. David P. Butler was

3 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the past five years, as applicable. Per unit data is derived from the Fund s financial statements. Ratios and supplemental data are derived from the Fund s Net Asset Value. CLASS A CLASS A(H) Net Assets, beginning of period $ 15.3 $ $ $ $ $ 9.38 $.58 $ 17.4 $ $ $ $ Increase (decrease) from operations: Total revenue Total expenses (.13) (.23) (.21) (.21) (.) (.18) (.17) (.32) (.27) (.3) (.29) (.26) Realized gains (losses) for the period (.)..89 (1.16).26 (.32) Unrealized gains (losses) for the period (.23) 2. (.3) (.56) 3.2 (.6) Total increase (decrease) from operations (2) $ (.4) $ 2.62 $.7 $ 1.58 $.31 $ 2.13 $ (.56) $ 3.43 $ 1.5 $.76 $.57 $ 2.61 Distributions: From income (excluding dividends) From dividends (.13) (.21) (.18) (.17) (.14) (.13) (.15) (.27) (.24) (.21) (.17) (.18) From capital gains Return of capital Total Annual Distributions (3) (.13) (.21) (.18) (.17) (.14) (.13) (.15) (.27) (.24) (.21) (.17) (.18) Net Assets, end of period $15.13 $15.3 $12.88 $12.99 $11.55 $11.37 $19.88 $.58 $17.4 $16.66 $16.33 $15.95 CLASS F CLASS F(H) Net Assets, beginning of period $ $ 13.7 $ $ $ $ 9.49 $.8 $ $ $ $ 16.8 $ Increase (decrease) from operations: Total revenue Total expenses (.4) (.8) (.7) (.7) (.8) (.6) (.5) (.11) (.9) (.) (.11) (.9) Realized gains (losses) for the period (.19) (1.17).36 (.34) Unrealized gains (losses) for the period (.26) 2.12 (.27) (.59) (.2) 2.79 Total increase (decrease) from operations (2) $.3 $ 2.81 $.26 $ 1.75 $.42 $ 2.3 $ (.45) $ 3.7 $ 1.39 $.61 $.72 $ 2.8 Distributions: From income (excluding dividends) From dividends (.19) (.35) (.32) (.31) (.26) (.24) (.25) (.46) (.42) (.4) (.36) (.33) From capital gains Return of capital Total Annual Distributions (3) (.19) (.35) (.32) (.31) (.26) (.24) (.25) (.46) (.42) (.4) (.36) (.33) Net Assets, end of period $ $ $ 13.7 $ $ $ $.11 $.8 $ $ $ $ 16.8 CLASS I CLASS I(H) Net Assets, beginning of period $ 12.9 $ $.93 $ 9.71 $ 9.56 $ 7.87 $ 17.1 $ $ $ $ $ Increase (decrease) from operations: Total revenue Total expenses (.1) (.1) (.1) (.1) (.2) (.1) (.1) (.2) (.2) (.2) (.3) (.2) Realized gains (losses) for the period (.14) (.95).4 (.34) Unrealized gains (losses) for the period (.23) 1.75 (.15) (.5) (.5) 2.36 Total increase (decrease) from operations (2) $.4 $ 2.39 $.34 $ 1.46 $.37 $ 1.95 $ (.34) $ 3.8 $ 1.24 $.55 $.72 $ 2.36 Distributions: From income (excluding dividends) From dividends (.19) (.34) (.31) (.3) (.26) (.23) (.24) (.44) (.4) (.39) (.35) (.33) From capital gains (.) Return of capital Total Annual Distributions (3) (.19) (.34) (.31) (.3) (.26) (.23) (.24) (.44) (.4) (.39) (.45) (.33) Net Assets, end of period $ $ 12.9 $ $.93 $ 9.71 $ 9.56 $ $ 17.1 $ $ $ $ (1) This information is derived from the Fund s audited annual financial statements and the Fund s unaudited semi-annual financial statements. For the financial years beginning on or after January 1, 14, the financial highlights were derived from the Fund s financial statements prepared in accordance with International Financial Reporting Standards ( IFRS ). For the financial year ended December 31, 13, the financial highlights were restated to comply with IFRS reporting. For financial years beginning on or after January 1, 13, all references to Net Assets or Net Assets per Unit in the financial highlights are references to net assets attributable to holders of redeemable units determined in accordance with IFRS as presented in the financial statements of the Fund. (2) Net Assets and distributions are based on the actual number of units outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of units outstanding over the financial period. (3) Distributions were paid in cash/reinvested in additional units of the Fund, or both.

4 Ratios and Supplemental Data DFA International Core Equity Fund CLASS A CLASS A(H) Total net asset value ($) ( s) (1) 132, ,88 113, ,122,667,659 13,168 13,862 11,893 11,334 13,89 18,148 15,859 Number of units outstanding ( s) (1) 8,738 8,812 8,837 9,94 8,717 8, ,138 1,172 Management expense ratio (2) 1.59% (5) 1.6% 1.64% 1.61% 1.7% 1.69% 1.6% (5) 1.64% 1.64% 1.66% 1.73% 1.73% 1.82% Management expense ratio before waivers or absorption (2) 1.59% (5) 1.6% 1.64% 1.61% 1.7% 1.69% 1.6% (5) 1.64% 1.64% 1.66% 1.73% 1.73% 1.82% Trading expense ratio (3).2% (5).4%.3%.4%.4%.2%.2% (5).4%.3%.4%.4%.2%.2% Portfolio turnover rate (4) 2.77% 11.84% 8.62% 13.18% 12.83% 3.31% 2.77% 11.84% 8.62% 13.18% 12.83% 3.31% 1.85% Net asset value per unit ($) CLASS F CLASS F(H) Total net asset value ($) ( s) (1) 6, , ,49 432, , , , , ,14 158, , ,168 93,249 Number of units outstanding ( s) (1) 39,653 38,389 34,841 32,776 3,419 27,983 12,381 12,35,88 9,413 8,345 7,658 6,838 Management expense ratio (2).48% (5).49%.53%.5%.6%.58%.5% (5).51%.55%.52%.62%.61%.66% Management expense ratio before waivers or absorption (2).48% (5).49%.53%.5%.6%.58%.5% (5).51%.55%.52%.62%.61%.66% Trading expense ratio (3).2% (5).4%.3%.4%.4%.2%.2% (5).4%.3%.4%.4%.2%.2% Portfolio turnover rate (4) 2.77% 11.84% 8.62% 13.18% 12.83% 3.31% 2.77% 11.84% 8.62% 13.18% 12.83% 3.31% 1.85% Net asset value per unit ($) CLASS I CLASS I(H) Total net asset value ($) ( s) (1) 44,198 49,38 286,597 23, ,63 139, , ,718 23,583 17, ,87 94,846 46,731 Number of units outstanding ( s) (1) 34,455 31,738 26,45 21,124 18,3 14,586 22,674 19,854 16,67 12,39,94 7,158 4,161 Management expense ratio (2).6% (5).6%.9%.7%.16%.13%.7% (5).7%.%.9%.17%.15%.18% Management expense ratio before waivers or absorption (2).6% (5).6%.9%.7%.16%.13%.7% (5).7%.%.9%.17%.15%.18% Trading expense ratio (3).2% (5).4%.3%.4%.4%.2%.2% (5).4%.3%.4%.4%.2%.2% Portfolio turnover rate (4) 2.77% 11.84% 8.62% 13.18% 12.83% 3.31% 2.77% 11.84% 8.62% 13.18% 12.83% 3.31% 1.85% Net asset value per unit ($) (1) This information is derived from the Fund s audited annual financial statements and the Fund s unaudited semi-annual financial statements. For the financial years beginning on or after January 1, 14, the financial highlights were derived from the Fund s financial statements prepared in accordance with IFRS. For the financial year ended December 31, 13, the financial highlights were restated to comply with IFRS reporting. For financial years beginning on or after January 1, 13, all references to Net Assets or Net Assets per Unit in the financial highlights are references to net assets attributable to holders of redeemable units determined in accordance with IFRS as presented in the financial statements of the Fund. (2) Management expense ratio is based on total expenses (excluding broker commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average Net Asset Value during the period. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average Net Asset Value during the period. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a Fund s portfolio turnover in a year, the greater the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of the Fund. (5) Percentages are annualized.

5 Management Fees Dimensional receives management fees for its service as manager of the Fund. These fees are calculated as a percentage of the Net Asset Value of the Fund and are calculated daily and payable monthly. The table below shows the annual management fee rates for each class of units of the Fund. Annual Rate Class A Class F Class I Management Fees 1.35%.35% % Annual Rate Class A (H) Class F (H) Class I (H) Management Fees 1.35%.35% % Dimensional pays a trailer fee to dealers out of the management fee received for Class A and Class A (H) units of the Fund. This trailer fee is generally calculated as a percentage of the average daily Net Asset Value of Class A and Class A (H) units of the Fund held by the dealer s clients or by the dealer on behalf of the clients. The maximum annual trailer fee for the Class A and Class A (H) units of the Fund is 1.%. The balance of the management fees are for the general management and administrative services provided to the Fund. The table below shows a breakdown of the services received by the Fund as a percentage of management fees. Class A Class F Class I Management and Administrative Services 26% % % Trailer Fees 74% % % % % % Class A (H) Class F (H) Class I (H) Management and Administrative Services 26% % % Trailer Fees 74% % % % % % No management fees are charged to the Fund with respect to Class I and Class I (H) units. Instead, each Class I and Class I (H) investor pays a separate fee directly to the manager of the Fund. Past Performance The performance information shown assumes that all distributions made by the Fund during the periods shown were reinvested in additional units of the Fund. The performance information does not take into account any sales, redemption, distribution, or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. DFA International Core Equity Fund Class A % 6.% % 15.4% 22.77% 2.78% 13.99%.66%.5% -.3% % DFA International Core Equity Fund Class F % 7.37% % 24.3% 16.73% 15.22% 3.83% 1.8% 21.9%.23% % DFA International Core Equity Fund Class I % 7.91% -15.4% 17.36% 24.79% 4.29% 15.74% % % 22.34%.46% Year-by-Year Returns The bar charts show the Fund s annual performance for each of the financial years shown, and how the Fund s performance has changed from year to year. The charts show, in percentage terms, how much an investment made on the first day of each financial year would have increased or decreased by the last day of that financial year, or as the case may be, of the interim period.

6 DFA International Core Equity Fund Class A(H) % % % 18.22%19.34% 6.3% 3.47%3.28% 19.92% -2.7% -3 9* * The information for 9 is for the period from January 26, 9 to December 31, 9. DFA International Core Equity Fund Class F(H) % %.57% 21.24% 11.24% 4.62% 4.51% 7.22% -2.16% % -3 9* * The information for 9 is for the period from January 23, 9 to December 31, 9. DFA International Core Equity Fund Class I(H) % 21.% 5.9% 4.94% 7.67% 21.82% -1.84% -1.99% -5 11* Summary of Investment Portfolio as at 18 (unaudited) Country Mix % of Fund s Net Asset Value Australia 5. Austria.35 Belgium 1.7 Brazil 1.64 Chile.3 China 8.66 Colombia.12 Czech Republic.4 Denmark 1.26 Egypt.1 Finland 1.16 France 6.43 Germany 5.98 Great Britain Greece.6 Hong Kong 2.26 Hungary.8 India 2.73 Indonesia.58 Ireland.52 Israel.41 Italy 2.9 Japan Malaysia.67 Mexico.75 Netherlands 2.32 New Zealand.31 Norway.78 Peru.4 Philippines.24 Poland.32 Portugal.19 Russia.29 Singapore.93 South Africa 1.86 South Korea 4.43 Spain 1.67 Sweden 2.1 Switzerland 4.56 Taiwan 4.8 Thailand.71 Turkey.26 United States of America.1 Cash and Cash Equivalents.93 Currency Forwards* (.14) Net Other Assets/Liabilities.9. * The information for 11 is for the period from September 8, 11 to December 31, 11.

7 Top 25 Issuers % of Fund s Net Asset Value 1 Royal Dutch Shell PLC Total SA.88 3 BP PLC.86 4 Toyota Motor Corp Samsung Electronics Co. Ltd Nestle SA.62 7 BHP Billiton Ltd HSBC Holdings PLC.54 9 China Construction Bank Corp., Class H.52 Novartis AG Daimler AG Vodafone Group PLC Tencent Holdings Ltd China National Building Material Co. Ltd., Class H BASF SE Taiwan Semiconductor Manufacturing Co. Ltd Honda Motor Co. Ltd Volkswagen AG Rio Tinto PLC.31 AIA Group Ltd VALE SA British American Tobacco PLC France Telecom SA Sony Corp China Mobile Ltd Total Net Asset Value: $1,818,312,384 * Currency Forwards are hedged against Classes A(H), F(H) and I(H) of the Fund. All holdings of the Fund are long positions. The Summary of Investment Portfolio may change due to the Fund s ongoing portfolio transactions. Quarterly updates are available within 6 days of each quarter end where an annual or interim report is not published by visiting ca.dimensional.com or by calling Dimensional collect at or by writing to Dimensional at 745 Thurlow Street, Suite 21, Vancouver, BC, Canada, V6E C5. DFA International Core Equity Fund