Annual Report and Audited Financial Statements

Transcription

1 Annual Report and Audited Financial Statements For the year ended 30 November 2014 Dimensional Funds plc Authorised and Regulated by the Central Bank of Ireland

2 No marketing notification has been submitted in Germany for the following Funds of Dimensional Funds plc: Emerging Markets II Fund Euro Inflation Linked Long Duration Fixed Income Fund European Core Equity Fund Global Core Equity II Fund Global Short Fixed Income II Fund Global Short-Term Investment Grade Fixed Income Fund Global Sustainability Core Equity Fund Multi-Factor Balanced Fund Multi-Factor Conservative Fund Sterling Inflation Linked Intermediate Duration Fixed Income Fund Sterling Inflation Linked Long Duration Fixed Income Fund U.S. Small Companies II Fund U.S. Fund Accordingly, these Funds must not be publicly marketed in Germany.

3 Table of Contents General Information 2 Investment Manager s Reports 3 Directors Report 8 Custodian s Report 16 Independent Auditors Report 17 Balance Sheet 18 Profit and Loss Account 24 Statement of Changes in Net s Attributable to Holders of Redeemable Shares 30 Portfolio of Investments Emerging Markets Fund 32 Euro Inflation Linked Intermediate Duration Fixed Income Fund 49 Euro Inflation Linked Long Duration Fixed Income Fund 50 Euro Ultra Short Fixed Income Fund (terminated 22 October 2014) 51 European Small Companies Fund 52 European Fund 63 Global Core Equity Fund 65 Global Short Fixed Income Fund 111 Global Short-Term Investment Grade Fixed Income Fund 115 Global Small Companies Fund 121 Global Sustainability Core Equity Fund 160 Global Targeted Fund 175 Global Ultra Short Fixed Income Fund (formerly known as Sterling Ultra Short Fixed Income Fund) 209 Multi-Factor Balanced Fund 213 Multi-Factor Conservative Fund 214 Multi-Factor Equity Fund 215 Pacific Basin Small Companies Fund 257 Pacific Basin Fund 278 Sterling Inflation Linked Intermediate Duration Fixed Income Fund 280 Sterling Inflation Linked Long Duration Fixed Income Fund 281 U.S. Small Companies Fund 282 Notes to the Financial Statements 297 Statement of Portfolio Changes (unaudited) 342 Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

4 General Information Board of Directors: Arthur Barlow (American) Peter Blessing (Irish)* ** David G. Booth (American) Dermot S.L. Butler (Canadian)* ** David R. Martin (American)** Catherine L. Newell (American)** Gerard O Reilly (Irish) (appointed 28 August 2014) Eduardo Repetto (American) John Romiza (American) (appointed 20 December 2013) David Salisbury (British)** Investment Manager: Dimensional Fund Advisors Ltd 20 Triton Street Regent s Place London, NW1 3BF England Investment Sub-Advisor: (All Funds) Dimensional Fund Advisors LP Palisades West 6300 Bee Cave Road, Building 1 Austin, TX USA Investment Sub-Advisor: (All Funds) DFA Australia Limited Level 43, Gateway 1 Macquarie Place Sydney NSW 2000 Australia Investment Sub-Advisor: (All Funds) Dimensional Fund Advisors Pte. Ltd 8 Marina View Asia Square Tower 1 Suite Singapore * Independent directors ** Non-executive directors Investment Sub-Advisor: (All Funds) Dimensional Japan Ltd Kokusai Building, Suite 808, Marunouchi, Chiyoda-ku, Tokyo Japan Independent Auditors: PricewaterhouseCoopers 1 Spencer Dock North Wall Quay Dublin 1 Ireland Registered Office: 25/28 North Wall Quay Dublin 1 Ireland Administrator: State Street Fund Services (Ireland) Limited 78 Sir John Rogerson s Quay Dublin 2 Ireland Custodian: State Street Custodial Services (Ireland) Limited 78 Sir John Rogerson s Quay Dublin 2 Ireland Stockbrokers: Davy Stockbrokers 49 Dawson Street Dublin 2 Ireland Legal Advisers in Ireland: A&L Goodbody International Financial Services Centre North Wall Quay Dublin 1 Ireland Secretary: Goodbody Secretarial Limited 25/28 North Wall Quay Dublin 1 Ireland Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

5 Investment Manager s Reports Emerging Markets Fund The Emerging Markets Fund (the Fund ) has been invested in a broad range of companies with high book-to-market ratios across the emerging markets region and as at 30 November 2014 had holdings in approximately 1,950 companies. This reflects our approach of seeking to deliver highly diversified exposure to emerging markets value companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was -0.77%, as value companies performed poorly during the period. This compares to a total return of -0.45% for the MSCI Emerging Markets Index, outperforming the Fund due to the Funds exclusion of REITs which performed strongly over the period. The portfolio is fully invested and seeks to capture the returns of emerging markets value companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Euro Inflation Linked Intermediate Duration Fixed Income Fund The Euro Inflation Linked Intermediate Duration Fixed Income Fund (the Fund ) has been invested in EUR inflation linked issues of Eurozone governments with maturities between three and twenty years. The real yield to maturity at this time was approximately -0.29%. For the twelve months ended 30 November 2014, the total return was 6.5%. This compares to a return Barclays Capital French EMU HICP Linked 5-15 Year Bond index of 6.58%. The index has been included for market context purposes only. Euro Inflation Linked Long Duration Fixed Income Fund The Euro Inflation Linked Long Duration Fixed Income Fund (the Fund ) has been invested in EUR inflation linked issues of Eurozone governments with maturities greater than 8 years. The real yield to maturity at this time was approximately 0.18%. European Small Companies Fund The European Small Companies Fund (the Fund ) has been invested in a broad range of small companies across the European region and as at 30 November 2014 had holdings in approximately 1,250 companies. This reflects our approach of seeking to deliver highly diversified exposure to European small companies. Over the twelve months to 30 November 2014, the total return of the Fund in Euro (the Base Currency of the Fund) was 7.27%, as European small companies performed strongly. This compares to a return of 6.57% for the MSCI Europe Small Cap Index, underperforming the Fund due the inclusion of UK AIM listed companies which performed poorly. The portfolio is fully invested and seeks to capture the returns of European small companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. European Fund The European Fund (the Fund ) has been invested in a broad range of large cap value companies across the European region and as at 30 November 2014 had holdings in approximately 170 companies. This reflects our approach of seeking to deliver highly diversified exposure to European large cap value companies. Over the twelve months to 30 November 2014 the total return of the Fund in Euro (the Base Currency of the Fund) was 7.84%, with strong performance particularly in the Swiss market. This compares to a return of 8.34% for the MSCI Europe Index outperforming the Fund due to the Funds exclusion of REITs which performed strongly over the period. The portfolio is fully invested and seeks to capture the returns of European large cap value companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. For the twelve months ending 30 November 2014, the total return was 14.1%. This compares to a return of the Barclays France Government EMU HICP Linked 15+ Years Index of 16.2%. The Index has been included for market context purposes only. Euro Ultra Short Fixed Income Fund The fund was closed on 22 October Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

6 Investment Manager s Reports (continued) Global Core Equity Fund The Global Core Equity Fund (the Fund ) has been invested in a broad range of companies with increased exposure to companies with high book-to-market ratios and smaller market capitalisations across developed world markets. As at 30 November 2014 the Fund had exposure to approximately 5,500 companies which reflects our approach of seeking to deliver highly diversified exposure to developed markets companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was 7.14%, with strong performance in US market. This compares to a total return of 8.91% for the MSCI World Index, outperforming the Fund due to the lower allocation to poorly performing small cap stocks. Global Small Companies Fund The Global Small Companies Fund (the Fund ) has been invested in a broad range of companies with smaller market capitalisations across developed world markets. As at 30 November 2014 the Fund had exposure to approximately 4,600 companies which reflects our approach of seeking to deliver highly diversified exposure to developed markets small companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was 2.30%, as small cap stocks underperformed the overall market. This compares to total return of 3.72% for the MSCI World Small Cap Index, exceeding the Fund return due to the Funds greater allocation to poorly performing micro-cap stocks. The portfolio is fully invested and seeks to capture the returns of global markets. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Global Short Fixed Income Fund The Global Short Fixed Income Fund (the Fund ) has been invested in a broad range of high quality fixed income issues with maturities at or below five years. As at 30 November 2014, the Fund was diversified across 3 currencies (, & SGD) of issuers from 16 different countries as well as supranational organisations. This is a reduction of the number of currencies from 6 on 31 May In each case, however, the foreign currency exposure was hedged back into Euro (the Base Currency of the Fund). As at 30 November 2014, the average maturity of the Fund was approximately 4.14 years, resulting in a duration of approximately Over the twelve months to 30 November 2014, the total return of the Fund in Euro was 2.4%. This compares to a return on the Citigroup WGBI Currency Hedged 1 to 5 Year EUR Index of 1.61%. The index has been included for market context purposes only. Global Short-Term Investment Grade Fixed Income Fund The Global Short-Term Investment Grade Fixed Income Fund (the Fund ) has been invested in a broad range of high quality fixed income issues with maturities at or below five years and an average duration of below 3 years. As at 30 November 2014, the yield to maturity at this time was approximately 1.60%. The Fund is fully invested and seeks to capture the returns of global small-cap companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Global Sustainability Core Equity Fund The Global Sustainability Core Equity Fund (the Fund ) has been invested in a broad range of companies with increased exposure to companies with high book-to-market ratios and smaller market capitalisations across developed world markets, while also adjusting the composition of the Fund based on environmental impact considerations. As at 30 November 2014 the Fund had exposure to approximately 7,000 companies which reflects our approach of seeking to deliver highly diversified exposure to developed markets companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S Dollars (the Base Currency of the Fund) was 6.64% with strong performance in US market. This compares to a return of the MSCI World Index of 8.91%, outperforming the Fund due to the lower allocation to poorly performing small cap stocks. The portfolio is fully invested and seeks to capture the returns of global markets. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. The fund was launched on 8 January For the partial period from the first full month after inception to 30 November 2014, the total return of the Fund was 1.1%. This compares to a return on the Barclays Global Aggregate Credit 1-5 Index of 2.55%. The index has been included for market context purposes only. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

7 Investment Manager s Reports (continued) Global Targeted Fund The Global Targeted Fund (the Fund ) has been invested in a broad range of small and mid-cap companies with high book-tomarket ratios across developed world markets and as at 30 November 2014 had holdings in approximately 4,000 companies. This reflects our approach of seeking to deliver highly diversified exposure to small and mid-cap developed markets value companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was 1.07%, as smaller capitalisation stocks underperformed the overall market. This compares to a total return of 6.35% for the MSCI World SMID Index, outperforming the Fund due to its lower allocation to small cap securities. The Fund is fully invested and seeks to capture the returns of global small and mid-cap value companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Global Ultra Short Fixed Income Fund The Global Ultra Short Fixed Income Fund (formerly known as Sterling Ultra Short Fixed Income Fund) (the Fund ) invests in securities with maturity up to 2 years and a minimum credit rating of AA. The fund can have an average maturity of up to 1 year. On 30 November 2014 the yield to maturity of the fund was 0.75%. On 15 May 2014 the Sterling Ultra Short Fixed Income Fund became the Global Ultra Short Fixed Income Fund in order to expand the investment opportunity set. Over the twelve months to 30 November 2014, the total return of the Fund in was 0.59%. This compares to a return of One Month Libor of 0.46%. The index has been included for market context purposes only. Multi-Factor Balanced Fund The investment policy of the Multi Factor Balanced Fund (the Fund ) is to purchase equity securities of companies which provide exposure to developed and emerging market countries, and fixed income securities of issuers in global developed countries and/or in underlying funds which provide exposure to such equity and/or fixed income securities, which the Investment Manager deems eligible. The Investment Manager may invest up to 100% of the Fund s net assets in such underlying funds. The equity component of the Fund will generally have a greater allocation to companies that the Investment Manager deems to be small companies and to companies that the Investment Manager deems to be value companies, and will generally have a lower allocation to large growth companies, in each case, as compared to their representation in the general equity market universe. As at 30 November 2014, the aggregate exposure to equity and fixed income securities was approximately 60% and 40% respectively. As at 30 November 2014, the equity component of the Fund had exposure to approximately 11,500 companies reflecting an approach of seeking to deliver a highly diversified exposure to developed and emerging markets companies. As at 30 November 2014, the fixed income component of the Multi- Factor Balanced Fund was diversified across 70 unique issuers from 15 different countries as well as supranational organizations and had an average credit rating of AA. Over the twelve months to 30 November 2014, the return of the Fund was 7.69% (), with strong returns in the US market. This compares to a return of 8.52% () for the 60% MSCI World All Country Index () /40% Citigroup WGBI Currency Hedged 1 to 5 Year Index (), outperforming the Fund due to the lower allocation to small capitalisation stocks which performed poorly during the period. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Multi-Factor Conservative Fund The investment policy of the Multi Factor Conservative Fund (the Fund ) is to purchase equity securities of companies which provide exposure to developed and emerging market countries, and fixed income securities of issuers in global developed countries and/or in underlying funds which provide exposure to such equity and/or fixed income securities, which the Investment Manager deems eligible. The Investment Manager may invest up to 100% of the Fund s net assets in such underlying funds. The equity component of the Fund will generally have a greater allocation to companies that the Investment Manager deems to be small companies and to companies that the Investment Manager deems to be value companies, and will generally have a lower allocation to large growth companies, in each case, as compared to their representation in the general equity market universe. As at 30 November 2014, the aggregate exposure to equity and fixed income securities was approximately 40% and 60% respectively. As at 30 November 2014, the equity component of the Fund had exposure to approximately 11,500 companies reflecting an approach of seeking to deliver highly diversified exposure to developed and emerging markets companies. As at 30 November 2014, the fixed income component of the Multi- Factor Conservative Fund was diversified across 73 unique issuers from 15 different countries as well as supranational organizations and had an average credit rating of AA. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

8 Investment Manager s Reports (continued) Multi-Factor Conservative Fund (continued) Over the twelve months to 30 November 2014, the return of the Fund was 6.07% (), with strong returns in the US market. This compares to a return of 6.31% () for the 40% MSCI World All Country Index () /60% Citigroup WGBI Currency Hedged 1 to 5 Year Index (), outperforming the Fund due to the lower allocation to small capitalisation stocks which performed poorly during the period. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Multi-Factor Equity Fund The investment policy of the Multi Factor Equity Fund (the Fund ) is to purchase equity securities of companies which provide exposure to developed and emerging market countries and/or in underlying funds which provide exposure to such equity securities, which the Investment Manager deems eligible. The Investment Manager may invest up to 100% of the Fund s net assets in such underlying funds. The Fund will generally have a greater allocation to companies that the Investment Manager deems to be small companies and to companies that the Investment Manager deems to be value companies, and will generally have a lower allocation to large growth companies, in each case, as compared to their representation in the general equity market universe. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was -2.13%, with weak performance in Pacific Basin markets. This compares to a total return of -1.70% for the MSCI Pacific Small Cap Index, outperforming the Fund due to its greater allocation to strongly performing REITs sector. The Fund is fully invested and seeks to be well positioned to capture the returns of small companies in the Pacific Basin. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Pacific Basin Fund The Pacific Basin Fund (the Fund ) has been invested in a broad range of large cap value companies across the Pacific Basin region and as at 30 November 2014 had holdings in approximately 150 companies. This reflects our approach of seeking to deliver highly diversified exposure to Pacific Basin large cap value companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was -2.43%, due to the weak Japanese market over the period. This compares to total return of -1.03% for the MSCI Pacific Index, outperforming the Fund due to its greater allocation to REITs which performed strongly. As at 30 November 2014, the Fund had exposure to approximately 8,500 companies reflecting an approach of delivering highly diversified exposure to developed and emerging markets companies. Over the twelve months to 30 November 2014, the return of the Fund was 9.40% (), with strong returns in the US market. This compares to a return of 13.01% () for the MSCI All Country World Index, outperforming the Fund due to the lower allocation to small capitalisation stocks which performed poorly during the period. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Pacific Basin Small Companies Fund The Pacific Basin Small Companies Fund (the Fund ) has been invested in a broad range of small companies across the Pacific Basin region (Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea and Taiwan South Korea and Taiwan are included in the Fund to increase diversification although they are not in the MSCI Pacific Small Cap Index) and as at 30 November 2014 had holdings in approximately 2,500 companies. This reflects our approach of seeking to deliver highly diversified exposure to Pacific Basin small companies. The Fund is fully invested and seeks to be well positioned to capture the returns of Pacific Basin large cap value companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Sterling Inflation Linked Intermediate Duration Fixed Income Fund The Sterling Inflation Linked Intermediate Fund (the Fund ) has been invested in sterling inflation linked issues of the U.K. government with maturities between three and twenty years. The real yield to maturity at this time was a negative 0.88%. For the twelve month period ending on 30 November 2014, the total return in sterling was 8.1%. This compares to a return of the Barclays UK Government Inflation-Linked 5-15 years Index of 7.74%. The index has been included for market context purposes only. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

9 Investment Manager s Reports (continued) Sterling Inflation Linked Long Duration Fixed Income Fund The Sterling Inflation Linked Long Duration Fixed Income Fund (the Fund ) has been invested in sterling inflation linked issues of the U.K. government with maturities greater than twenty years. As of 30 November 2014, the Fund had a real yield of approximately negative 0.59%. For the twelve months ended 30 November 2014, the total return in sterling was 26.7%. This compares to a return of the Barclays UK Government Inflation-Linked 15+ years Index of 21.7%. The index has been included for market context purposes only. U.S. Small Companies Fund The U.S Small Companies Fund (the Fund ) has been invested in a broad range of U.S. small companies and as at 30 November 2014 had holdings in approximately 1,700 companies. This reflects our approach of seeking to deliver highly diversified exposure to U.S. small companies. Over the twelve months to 30 November 2014, the total return of the Fund in U.S. Dollars (the Base Currency of the Fund) was 3.34%, as small cap stocks underperformed the US market. This compares to a total return of 3.99% for the Russell 2000 Index, exceeding the Fund return due to its greater exposure to REITs which performed strongly over the period. The Fund is fully invested and seeks to be well positioned to capture the returns of U.S. small companies. Fair value adjustments and the time of valuation of currency can create differences between the performance of the Fund versus the index. The index has been included for market context purposes only. Dimensional Fund Advisors Ltd January 2015 Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

10 Directors Report The directors (the Directors ) of Dimensional Funds plc (the Company ) submit this Annual Report together with the audited financial statements for the year ended 30 November As at 30 November 2014 there were 20 active funds (30 November 2013: 20) (each a Fund, together the Funds ). The Company is established as an umbrella investment company with segregated liability between Funds and variable capital incorporated in Ireland as a public limited company pursuant to the Companies Acts, 1963 to 2013 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (the UCITS Regulations ). The Company is constituted as an umbrella fund insofar as the share capital of the Company will be divided into different portfolios of assets which will comprise separate funds. In accordance with the requirements of the Central Bank of Ireland UCITS Notices, shares may be divided into different classes to accommodate different subscription and/or redemption charges and/or charges and/or dividend and/or fee arrangements. The portfolio of assets maintained and comprising a separate Fund will be invested in accordance with the investment objectives and policies applicable to such Fund. The Directors of the Company have established 28 Funds as at 30 November 2014 (30 November 2013: 23 Funds), all of which have been approved by the Central Bank of Ireland. Emerging Markets Fund Emerging Markets II Fund* Euro Inflation Linked Intermediate Duration Fixed Income Fund Euro Inflation Linked Long Duration Fixed Income Fund Euro Ultra Short Fixed Income Fund (terminated 22 October 2014) European Core Equity Fund* European Small Companies Fund European Fund Global Core Equity Fund Global Core Equity II Fund* Global Short Fixed Income Fund Global Short Fixed Income II Fund* Global Short-Term Investment Grade Fixed Income Fund** Global Small Companies Fund Global Sustainability Core Equity Fund Global Targeted Fund Global Ultra Short Fixed Income Fund (formerly known as Sterling Ultra Short Fixed Income Fund) Global Fund* Multi-Factor Balanced Fund Multi-Factor Conservative Fund Multi-Factor Equity Fund Pacific Basin Small Companies Fund Pacific Basin Fund Sterling Inflation Linked Intermediate Duration Fixed Income Fund Sterling Inflation Linked Long Duration Fixed Income Fund U.S. Small Companies Fund U.S. Small Companies II Fund* U.S. Fund* * These funds have not issued any shares to investors and have remained dormant from the date of their approval. ** The Global Short-Term Investment Grade Fixed Income Fund commenced trading on 8 January Statement of Directors Responsibilities The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable Irish law and generally accepted accounting practice in Ireland including accounting standards issued by the Financial Reporting Council ( FRC ) and published by the Institute of Chartered Accountants in Ireland. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

11 Directors Report (continued) Statement of Directors Responsibilities (continued) Irish company law requires the Directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Company and of its results of operations for that period. In preparing those financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; and prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors confirm that they have complied with the above requirements in preparing the financial statements. The Directors are responsible for keeping proper books of account which disclose, with reasonable accuracy at any time, the financial position of the Company and to enable them to ensure that the financial statements are prepared in accordance with accounting standards generally accepted in Ireland and that they comply with the Companies Acts, 1963 to 2013 and the UCITS Regulations. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Under the UCITS Regulations, the Directors are required to entrust the assets of the Company to the custodian for safe-keeping. In carrying out this duty, the Directors have delegated custody of the Company s assets to State Street Custodial Services (Ireland) Limited (the Custodian ). The measures taken by the Directors to secure compliance with the Company s obligations to keep proper books of accounts include the use of appropriate systems and procedures and employment of competent persons. The books of accounts are retained at the offices of the administrator, State Street Fund Services (Ireland) Limited, 78 Sir John Rogerson s Quay, Dublin 2, Ireland (the Administrator ). The Investment Manager is responsible for the maintenance and integrity of the corporate and financial information regarding the Company included on the Investment Manager's website. Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Principal Activities and Review of the Business The Company has been formed to provide investors with an opportunity to purchase shares in a series of investment Funds. The investment objective of the Emerging Markets Fund, Emerging Markets II Fund, European Core Equity Fund, European Small Companies Fund, European Fund, Global Core Equity Fund, Global Core Equity II Fund, Global Small Companies Fund, Global Sustainability Core Equity Fund, Global Targeted Fund, Global Fund, Multi-Factor Balanced Fund, Multi-Factor Conservative Fund, Multi-Factor Equity Fund, Pacific Basin Small Companies Fund, Pacific Basin Fund, U.S. Small Companies Fund, U.S Small Companies II Fund and the U.S. Fund is to maximise or achieve long-term total return. The investment objective of the Euro Inflation Linked Intermediate Duration Fixed Income Fund and the Sterling Inflation Linked Intermediate Duration Fixed Income Fund is to seek to provide inflation protected intermediate-term fixed income return. The investment objective of the Global Ultra Short Fixed Income Fund is to seek to maximise returns from investment in short-term debt. The Euro Ultra Short Fixed Income Fund had the same investment objective until it terminated on 22 October The investment objective of the Euro Inflation Linked Long Duration Fixed Income Fund and the Sterling Inflation Linked Long Duration Fixed Income Fund is to seek to provide inflation protected long-term fixed income return. The investment objective of the Global Short Fixed Income Fund and the Global Short Fixed Income II Fund is to seek to maximise current income while preserving capital. The investment objective of the Global Short-Term Investment Grade Fixed Income Fund is to seek to maximise total returns from the universe of debt obligations in which the Fund invests. A review of the performance of the Company together with an analysis of key financial and non-financial performance indicators is available in the Investment Manager s Reports. Significant Events during the Year Dimensional Fund Advisors Pte. Ltd was appointed as a sub-advisor on 17 December Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

12 Directors Report (continued) Significant Events during the Year (continued) John Romiza was appointed as director effective 20 December JPY Accumulation Share Class of the Global Short Fixed Income Fund launched on 20 December Global Short-Term Investment Grade Fixed Income Fund launched on 8 January Accumulation Class, Distributing Class, Accumulation Investor Class and Distributing Investor Class of the Global Short-Term Investment Grade Fixed Income Fund launched on 8 January Accumulation Class and Distributing Class of the Global Short-Term Investment Grade Fixed Income Fund launched on 24 January EUR Accumulation Class and EUR Distributing Class of the Global Short-Term Investment Grade Fixed Income Fund launched on 3 February The Accumulation Investor Classes of the Emerging Markets Fund, European Small Companies Fund, European Fund, Global Core Equity Fund, Global Short Fixed Income Fund, Global Short-Term Investment Grade Fixed Income Fund, Global Targeted Fund, Pacific Basin Small Companies Fund, Pacific Basin Fund, U.S. Small Companies Fund and the Distributing Investor Classes of the Global Short-Term Investment Grade Fixed Income Fund de-listed and fully redeemed on 23 April 2014, but remain available for subscription. EUR Class E Shares of the Emerging Markets Fund closed on 14 May On 15 May 2014 the Sterling Ultra Short Fixed Income Fund became the Global Ultra Short Fixed Income Fund in order to expand the investment opportunity set. EUR Accumulation Class and EUR Distributing Class of the Global Ultra Short Fixed Income Fund launched on 15 May The U.S. Dollar discretionary line of credit of 50 Million was renewed for the Company and Dimensional Funds II plc on 3 June JPY Distributing Classes of the Emerging Markets Fund, Global Short Fixed Income Fund and Global Core Equity Fund launched on 27 June Dimensional Japan Ltd was appointed as a sub-advisor on 9 July As of 21 October 2014 the Global Small Companies Fund had disposed of all its fund-of-fund positions. Euro Ultra Short Fixed Income Fund terminated on 22 October Gerard O Reilly was appointed as director on 28 August SEK Accumulation Classes of the Emerging Markets Fund, Global Core Equity Fund, Global Short Fixed Income Fund and Global Targeted Fund launched on 28 November During the period the Multi-Factor Equity Fund disposed of some of its fund-of-fund positions and began acquiring the underlying positions invested into by the fund-of-funds. Outlook Our goal at Dimensional is to deliver an outstanding investment experience to our client. Our close ties to academia help us to identify leading research that can be beneficial to investors, and our team works to interpret, rigorously test, and consider the practical applicability of those ideas in carefully implemented investment strategies. This focus on research and implementation has been central to Dimensional s approach since our founding and will continue to be a key part of our offer to investors. Risk Management Objectives and Policies Information in relation to the Company s Risk Management Objectives and Policies are included in note 11 to the financial statements. Segregated Liability The Company is an umbrella investment company with segregated liability between Funds. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

13 Directors Report (continued) Results and Dividends The Directors may declare dividends in respect of any redeemable shares out of net income (including dividend and interest income) and the excess of realised and unrealised capital gains over realised and unrealised losses in respect of investments of the Company. The Directors anticipate that there will be no dividend distributions in respect of the accumulation classes of the funds. Accordingly, income and capital gains arising in respect of the accumulation classes of the Funds will be re-invested in the relevant Fund and reflected in the net asset value per share of the relevant Fund. The Directors anticipate making dividend distributions in respect of the distributing classes of the funds. Accordingly, any income arising in respect of the distributing classes of the Funds, will be distributed to investors in the relevant Fund in accordance with their respective shareholdings. Dividends of the distributing class will normally be declared by the Directors for the periods ending 31 May and 30 November. Dividends of the JPY distributing classes, if any are declared by the directors, will normally be declared for the periods ending 28 February, 31 May, 31 August and 30 November. Dividends of the other distributing classes will normally be declared by the directors for the period ending 30 November. Dividends declared and paid during the year are disclosed in note 14 to the financial statements. Connected party transactions The Central Bank of Ireland UCITS Notices, UCITS Dealings by promoter, manager, trustee, investment adviser and group companies states in paragraph one that any transaction carried out with a UCITS by a promoter, manager, trustee, investment adviser and/or associated or group companies of these ( connected parties ) must be carried out as if negotiated at arm s length. Transactions must be in the best interests of the unitholders. The board of directors are satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in paragraph one of UCITS 14.5 are applied to all transactions with connected parties; and the board is satisfied that transactions with connected parties entered into during the period complied with the obligations set out in this paragraph. Prospectus Updates An addendum was issued on 5 December This was supplemental to the prospectus dated 18 October The significant changes within the addendum included: The investment policies of the Emerging Markets Fund, European Core Equity Fund, European Small Companies Fund, European Fund, Global Core Equity Fund, Global Small Companies Fund, Global Targeted Fund, Global Fund, Multi-Factor Balanced Fund, Multi-Factor Conservative Fund, Multi-Factor Equity Fund, Pacific Basin Small Companies Fund, Pacific Basin Fund, U.S. Small Companies Fund and U.S. Fund were updated to include profitability; and A JPY Accumulation share class was added to the Global Short Fixed Income Fund. The Central Bank of Ireland approved a new prospectus of the Company on 16 December The significant changes to the prospectus included: Addition of a new Fund, Global Short-Term Investment Grade Fixed Income Fund; Addendum referred to above was included in the main prospectus; and Distributing Investor Share Classes were added to the following Funds: Emerging Markets Fund, Euro Ultra Short Fixed Income Fund, European Core Equity Fund, European Small Companies Fund, European Fund, Global Core Equity Fund, Global Short Fixed Income Fund, Global Small Companies Fund, Global Sustainability Core Equity Fund, Global Targeted Fund, Global Fund, Multi-Factor Equity Fund, Pacific Basin Small Companies Fund, Pacific Basin Fund, U.S. Small Companies Fund and U.S. Fund. The Central Bank of Ireland approved a new prospectus of the Company on 17 April The significant changes to the prospectus included: The addition of a JPY Distributing Class in the Global Short Fixed Income Fund; The addition of the following classes in the Sterling Ultra Short Fixed Income Fund (now the Global Ultra Short Fixed Income Fund ): CHF Accumulation class, CHF Distributing class, EUR Accumulation class, EUR Distributing class, NOK Accumulation class, NOK Distributing class, SEK Accumulation class, SEK Distributing class, Accumulation Investor class, Accumulation class, Distributing Investor class and Distributing class; Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

14 Directors Report (continued) Prospectus Updates (continued) Rating agency ratings for securities were updated in the Euro Inflation Linked Intermediate Duration Fixed Income Fund, Euro Inflation Linked Long Duration Fixed Income Fund, Euro Ultra Short Fixed Income Fund, Global Short Fixed Income Fund, Sterling Ultra Short Fixed Income Fund (now the Global Ultra Short Fixed Income Fund), Sterling Inflation Linked Intermediate Duration Fixed Income Fund and the Sterling Inflation Linked Long Duration Fixed Income Funds; For the Global Core Equity, Global Short Fixed Income Fund and U.S. Small Companies Fund the maximum investment in collective investment schemes has been reduced from 10% to 5%; Addition of John Romiza s biography as director; and Greece was reclassified as an emerging markets country and the UAE and Qatar were added as recognised markets. An addendum was issued on 15 May This was supplemental to the prospectus dated 17 April The main changes to the prospectus included: The Sterling Ultra Short Fixed Income Fund was renamed the Global Ultra Short Fixed Income Fund and the investment policy was amended; The addition of JPY Distributing and JPY Accumulation Classes in the Emerging Markets Fund, Global Core Equity Fund and the U.S. Small Companies Fund; Change to the dividend policy in respect of JPY Distributing share class allow for quarterly distributions; and Management fee increase and reduction in the minimum initial subscription amount in the Accumulation Investor Share Class and Distributing Investor Share Class in the following funds: Emerging Markets Fund, European Core Equity Fund, European Small Companies Fund, European Fund, Global Core Equity Fund, Global Short Fixed Income Fund, Global Small Companies Fund, Global Sustainability Core Equity Fund, Global Targeted Fund, Global Ultra Short Fixed income, Global Fund, Multi-Factor Equity Fund, Pacific Basin Small Companies Fund, Pacific Basin Fund, U.S. Fund, U.S. Small Companies Fund and Management fee increase in the Accumulation Investor Share Class and Distributing Investor Share Class in the Global Short- Term Investment Grade Fixed Income Fund. The Central Bank of Ireland approved a prospectus addendum on 30 June This was supplemental to the prospectus dated 17 April The significant changes to the prospectus included: Foreign Account Tax Compliance Act ( FATCA ) disclosures were added; Management fees were reduced from 45bps to 30bps for the Euro Accumulation DR Shares in the following funds: Global Core Equity Fund, Euro Inflation Linked Intermediate Duration Fixed Income Fund, Euro Inflation Linked Long Duration Fixed Income Fund and Euro Ultra Short Fixed Income Fund and the Accumulation DR Shares in the Global Core Equity Fund, Sterling Inflation Linked Intermediate Duration Fixed Income Fund and Sterling Inflation Linked Long Duration Fixed Income Fund; SEK Distributing Share Class and SEK Accumulation Share Classes were added to the Global Core Equity Fund, Global Targeted Fund, Emerging Markets Fund and Multi-Factor Equity Fund. A SEK Accumulation Share class was added to the Global Short Fixed Income Fund; and Amendment to the disclosure on rebates for management fees to allow discretion to rebate part or all of the management fees to any shareholder or to use or to use part of the management fees to remunerate or reimburse intermediaries, broker-dealers, platforms and other entities. An addendum was issued on 30 September This was supplemental to and forms part of the prospectus dated 17 April The main changes to the prospectus included: Removal of Class E Shares from the Emerging Markets Fund; Addition of two new risk factors, Structured Product Demand and Substantial Redemptions ; Amendment to the investment policies of the Multi-Factor Conservative Fund, the Multi-Factor Balanced Fund, the Multi-Factor Equity Fund, the Global Core Equity Fund, the Global Fund, the Global Small Companies Fund, the Global Sustainability Core Equity Fund, the Global Targeted Fund, the European Core Equity Fund, the European Fund, the European Small Companies Fund, the Pacific Basin Fund, the Pacific Basin Small Companies Fund, the U.S. Fund, the U.S. Small Companies Fund and the Emerging Markets Fund to update expected profitability to profitability ; Amendment to Investing in Shares section to clarify that it is the applicant s responsibility to ensure that the application is received by the Administrator or an Approved Broker prior to the dealing deadline; Disclosure added relating to cross-investment between Funds; Disclosure added in relation to the portfolio holdings; Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

15 Directors Report (continued) Prospectus Updates (continued) Biography for Gerard O'Reilly added; Update to the biography of Eduardo Repetto; Amendment to the disclosures regarding exchange of shares; and Investment policy amended to hedging for Global Short Fixed Income Fund. An addendum was issued on 29 October This is supplemental to and forms part of the prospectus dated 17 April The main changes to the prospectus included: Addition of four new Funds: Emerging Markets II Fund, Global Core Equity II Fund, Global Short Fixed Income II Fund and U.S. Small Companies II Funds; Amendment to the definition of Valuation Point ; and Inclusion of disclosure relating to services provided by the Investment Manager to financial advisors. Post Balance Sheet Events SEK Accumulation Class of the Global Ultra Short Fixed Income Fund launched on 10 December David Salisbury retired as a director and employee of the Investment Manager on 31 December Directors The names of the persons who were Directors during the year ended 30 November 2014 are set out on page 2. Directors and Secretary s Interests in Shares and Contracts As at and during the years ended 30 November 2014 and 30 November 2013 David Salisbury held shares in certain Funds as disclosed in note 10 to the financial statements. The authorised share capital of the Company was 500,000,030,000 shares of no par value divided into 30,000 subscriber shares of no par value, and 500,000,000,000 shares of no par value, initially designated as unclassified shares. As at 30 November 2014 Dimensional Fund Advisors LP, Peter Blessing, David G. Booth, Dermot S.L. Butler, Arthur Barlow and Catherine L. Newell held one subscriber share each (fully paid-up) in the Company (30 November 2013: Dimensional Fund Advisors LP, Peter Blessing, David G. Booth, Dermot S.L. Butler, Arthur Barlow and Catherine L. Newell). Arthur Barlow, David G. Booth, David R. Martin, Catherine L. Newell, Gerard O Reilly, Eduardo Repetto, John Romiza and David Salisbury, as employees of the Investment Manager or the Sub-Advisors for the period ended 30 November 2014, are not entitled to remuneration from the Company for this period. Aside from the information disclosed above, the Directors and Secretary and their families had no other interest in the shares of the Funds as at and during the years ended 30 November 2014 or 30 November No Director had a material interest in any other contract of significance, during or at the end of the year, in relation to the business of the Company. Independent Auditors The Auditors, PricewaterhouseCoopers, will be re-appointed in accordance with section 160(2) of the Companies Act, Corporate Governance Statement The Company is subject to and complies with Irish Statute comprising the Companies Acts, 1963 to 2013, the UCITS Regulations and the Listing Rules of the Irish Stock Exchange, as applicable to investment funds, and with the business plan of the Company. Although there is no specific statutory corporate governance code applicable to Irish collective investment schemes whose shares are admitted to trading on the Irish Stock Exchange, the Company is subject to corporate governance practices imposed by: (i) The Irish Companies Acts 1963 to 2013 which are available for inspection at the registered office of the Company and may also be obtained at (ii) The Articles of Association of the Company which are available for inspection at the registered office of the Company and at the Companies Registration Office in Ireland; (iii) The Central Bank of Ireland in their UCITS Notices and Guidance Notes which can be obtained from the Central Bank of Ireland s website at: and are available for inspection at the registered office of the Company; (iv) The Irish Stock Exchange ( ISE ) through the ISE Code of Listing Requirements and Procedures which can be obtained from the ISE s website at and (v) The business plan in respect of the Company which is available for inspection at the registered office of the Company. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

16 Directors Report (continued) Corporate Governance Statement (continued) A voluntary corporate governance code (the IFIA Code ) was issued by the Irish Funds Industry Association in December The Board of Directors (the Board ) adopted the IFIA Code with effect from 31 December Paragraph 4.1 of the IFIA Code recommends that the Board comprise a majority of non-executive directors. Since the appointment of Gerard O'Reilly as a director on 28 August 2014, the Board has an equal number of executive and non-executive directors as defined in the IFIA Code rather than a majority. The Board believes that this is in the best interests of Shareholders. Financial Reporting Process Description of Main Features The Board is ultimately responsible for overseeing the establishment and maintenance of adequate internal control and risk management systems of the Company in relation to the financial reporting process. As the Company has no employees, all functions including the preparation of the financial statements have been outsourced. The Company has appointed State Street Fund Services (Ireland) Limited as its Administrator consistent with the regulatory framework applicable to investment fund companies such as the Company. On appointing the Administrator the Board noted that it was regulated by the Central Bank of Ireland and, in the Board s opinion, had significant experience as an administrator. The Board also noted the independence of the Administrator from the Company s Investment Manager. Subject to the supervision of the Board, the appointment of the Administrator is intended to manage rather than eliminate the risk of failure to achieve the Company s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The annual and interim financial statements of the Company are required to be approved by the Board of the Company and filed with the Central Bank of Ireland. The annual financial statements are also required to be filed with the Irish Stock Exchange. The annual financial statements are required to be audited by independent auditors who report annually to the Board on their findings. The Board evaluates and discusses significant accounting and reporting issues as the need arises. Risk Assessment The Board is responsible for assessing the risk of irregularities whether caused by fraud or error in financial reporting and for ensuring that processes are in place for the timely identification of internal and external matters with a potential effect on financial reporting. The Board s appointment of an Administrator and Custodian independent of the Investment Manager to the Company and which is regulated by Central Bank of Ireland is intended to mitigate though not eliminate the risk of fraud or irregularities which may impact the financial statements of the Company. Monitoring The Board receives regular presentations and reviews reports from the Custodian, Investment Manager and Administrator. The Board also has an annual process to ensure that appropriate measures are taken to consider and address any control weaknesses identified and measures recommended by the independent auditors. Capital Structure No person has a significant direct or indirect holding of securities in the Company. No person has any special rights of control over the Company s share capital. There are no restrictions on voting rights. For the appointment and replacement of Directors, the Company is governed by its Memorandum and Articles of Association, Irish Statute comprising the Companies Acts, 1963 to 2013, the UCITS Regulations, the Listing Rules of the Irish Stock Exchange as applicable to investment funds and the IFIA Code which it adopted. The Articles of Association themselves may be amended by special resolution of the shareholders. Composition and Operation of the Board of Directors There are ten Directors currently, five of whom are non-executive and two of whom are independent of the Investment Manager as required by the Irish Stock Exchange Listing Rules for investment funds. None of the Directors have entered into an employment or service contract with the Company. All related party transactions during the year are detailed in note 10 to the financial statements. The Articles of Association do not provide for retirement of Directors by rotation. However, the Directors may be removed by the shareholders by ordinary resolution in accordance with the procedures established under the Irish Companies Acts 1963 to The Board generally meets at least quarterly. The Directors have designated two sub-committees to carry out the management functions of the Company. A management committee consisting of Arthur Barlow, David R. Martin, John Romiza and Catherine L. Newell (the Management Committee ) and an independent committee consisting of David Salisbury, Peter Blessing and Dermot S.L. Butler (the Independent Committee ). The Management Committee is responsible for risk management, monitoring of investment performance, monitoring of capital, review of accounting policies and procedures, monitoring compliance and financial control. The Independent Committee is responsible for monitoring compliance, complaints handling and internal audit. Both committees in conjunction with the Board are also responsible for decision taking and supervision of delegates. Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

17 Directors Report (continued) Composition and Operation of the Board of Directors (continued) The Board is responsible for managing the business affairs of the Company in accordance with the Articles of Association. Subject to its supervision and direction the Board has delegated the day to day administration of the Company to the Administrator and the Investment Management and distribution functions to Dimensional Fund Advisors Ltd as the Investment Manager. The Company has appointed State Street Custodial Services (Ireland) Limited as the Custodian to the Company with responsibility for the safekeeping of the assets of the Company. Shareholders Meetings The Annual General Meeting of the Company will usually be held in Dublin, normally during the month of August or such other date as the Directors may determine. Notice convening the Annual General Meeting in each year at which the audited financial statements of the Company will be presented (together with the Directors' and Auditors' Reports of the Company) will be sent to shareholders at their registered addresses not less than 21 days before the date fixed for the meeting. Other general meetings may be convened from time to time by the Directors in such manner as provided by Irish law. Each of the shares entitles the holder to attend and vote at meetings of the Company and of the Fund represented by those shares. Matters will be determined by a meeting of shareholders on a poll. Each share gives the holder one vote in relation to any matters relating to the Company which are submitted to shareholders for a vote by poll. No business shall be transacted at any shareholder meeting unless a quorum is present. Two shareholders present either in person or by proxy shall be a quorum for a general meeting. If within half an hour after the time appointed for a meeting a quorum is not present, the meeting, if convened on the requisition of or by shareholders, shall be dissolved. In any other case it shall stand adjourned to the same day in the next week, at the same time and place or to such other day and at such other time and place as the Directors may determine. One shareholder present either in person or by proxy shall be a quorum for any such adjourned meeting. Approved on behalf of the Board of Directors Peter Blessing Director Dermot Butler Director 3 March 2015 Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

18 Custodian s Report to the Shareholders of Dimensional Funds plc We have enquired into the conduct of the Company for the year ended 30 November 2014 in our capacity as Custodian to the Company. This report including the opinion has been prepared for and solely for the shareholders in the Company as a body, in accordance with the Central Bank of Ireland s UCITS Notice 4, and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown. Responsibilities of the Custodian Our duties and responsibilities are outlined in the Central Bank of Ireland s UCITS Notice 4. One of those duties is to enquire into the conduct of the Company in each annual accounting period and report thereon to the shareholders. Our report shall state whether, in our opinion, the Company has been managed in that period in accordance with the provisions of the Company s Memorandum and Articles of Association and the UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions. If the Company has not so complied, we as Custodian must state why this is the case and outline the steps which we have taken to rectify the situation. Basis of Custodian Opinion The Custodian conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in UCITS Notice 4 and to ensure that, in all material respects, the Company has been managed: (i) (ii) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulations; and otherwise in accordance with the Company s constitutional documentation and the appropriate regulations. Opinion In our opinion, the Company has been managed during the year, in all material respects: (i) (ii) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the Memorandum and Articles of Association and by the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, ( The Regulations ); and otherwise in accordance with the provisions of the Memorandum and Articles of Association and the Regulations. State Street Custodial Services (Ireland) Limited 3 March 2015 Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

19 Independent Auditors Report to the Members of Dimensional Funds plc We have audited the financial statements of Dimensional Funds plc for the year ended 30 November 2014 which comprise the Balance Sheet, the Profit and Loss Account, the Statement of Changes in Net s Attributable to Holders of Redeemable Shares, and the related notes for the company and for each of its Funds and the Portfolio of Investments for each of the Funds. The financial reporting framework that has been applied in their preparation is Irish law and accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland). Respective responsibilities of directors and auditors As explained more fully in the Statement of Directors Responsibilities set out on pages 8 and 9, the directors are responsible for the preparation of the financial statements giving a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the company s members as a body in accordance with Section 193 of the Companies Act, 1990 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: give a true and fair view in accordance with Generally Accepted Accounting Practice in Ireland of the state of the Company s and Funds affairs as at 30 November 2014 and of their results for the year then ended; and have been properly prepared in accordance with the requirements of the Companies Acts 1963 to 2013 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended). Matters on which we are required to report by the Companies Acts 1963 to 2013 We have obtained all the information and explanations which we consider necessary for the purposes of our audit. In our opinion proper books of account have been kept by the company. The financial statements are in agreement with the books of account. In our opinion the information given in the Directors' Report is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the provisions in the Companies Acts 1963 to 2013 which require us to report to you if, in our opinion, the disclosures of directors remuneration and transactions specified by law are not made. Olivia Hayden for and on behalf of PricewaterhouseCoopers Chartered Accountants and Statutory Audit Firm Dublin Ireland 3 March 2015 Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November

20 Balance Sheet as at 30 November 2014 and 30 November 2013 Note Emerging Markets Fund 30 Nov Nov 2013 Euro Inflation Linked Intermediate Duration Fixed Income Fund 30 Nov 2014 EUR 30 Nov 2013 EUR Euro Inflation Linked Long Duration Fixed Income Fund 30 Nov 2014 EUR 30 Nov 2013 EUR Euro Ultra Short Fixed Income Fund* 30 Nov 2014 EUR 30 Nov 2013 EUR s Financial assets at fair value through profit or loss 3(a), 10 2,017,270,093 2,012,180,423 5,050,056 3,319,127 13,145,892 8,172,136 31,486,328 Cash and cash equivalents 7 9,603,017 1,168,618 9,738 5,542 26,967 33, ,200 Cash collateral received 4 37,926,012 88,439,934 Unrealised gain on forward contracts 54,337 Receivable for shares sold 5,104,630 20,067, ,455 Receivable for securities sold 225, , ,224 Interest receivable ,300 16,197 66,211 46, ,437 Dividends and tax receivable 526, ,485 Amounts receivable from Investment Manager , ,208 Prepaid fees 3,953 5, , ,885 Total s 2,070,659,616 2,122,935,708 5,086,953 3,342,439 13,239,698 8,253,376 32,706,074 Liabilities Bank overdraft 7 (1,369,300) Unrealised loss on forward contracts (33,530) Payable under securities loan agreements 4 (37,926,012) (88,439,934) Management fees payable 6 (1,639,005) (2,577,888) (1,310) (460) (6,338) (8,876) (11,397) Payable for shares repurchased (1,422,994) (3,932,215) Payable for securities purchased (6,384,071) (1,833,435) (347,909) Distributions payable (4,776,167) (4,284,985) (28,300) (15,415) (74,360) Accrued expenses (410,554) (2,117,162) (1,818) (5,243) (3,066) (5,535) (16,986) Total Liabilities (excluding net assets attributable to holders of redeemable shares) (52,558,803) (104,554,919) (31,428) (21,118) (9,404) (14,411) (484,182) Net assets attributable to holders of redeemable shares at bid market value 2,018,100,813 2,018,380,789 5,055,525 3,321,321 13,230,294 8,238,965 32,221,892 Adjustment from bid market value to fair value 917,259 3,122,430 7,526 8,379 31,718 30,636 13,920 Net assets attributable to holders of redeemable shares 2,019,018,072 2,021,503,219 5,063,051 3,329,700 13,262,012 8,269,601 32,235,812 The accompanying notes form an integral part of the financial statements. * Euro Ultra Short Fixed Income Fund terminated 22 October Dimensional Fund Advisors Annual Report and Audited Financial Statements, 30 November