================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6067
DIMENSIONAL INVESTMENT GROUP INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
6300 BEE CAVE ROAD, BUILDING ONE, AUSTIN, TX 78746
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
CATHERINE L. NEWELL, ESQUIRE, VICE PRESIDENT AND SECRETARY
Dimensional Investment Group Inc.,
6300 BEE CAVE ROAD, BUILDING ONE, AUSTIN, TX 78746
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Registrant's telephone number, including area code: 512-306-7400
Date of fiscal year end: OCTOBER 31
Date of reporting period: OCTOBER 31, 2011
Explanatory Note: This Form N-CSR/A for Dimensional Investment Group Inc.
(the "Registrant") is being filed solely to reflect a change in the footnotes
to the performance information provided within the Performance Charts section
of the annual report for the Emerging Markets Portfolio II (the "Portfolio")
within Item 1 "Reports to Stockholders". The annual reports for the other
portfolios of the Registrant are contained in the Form N-CSR filed on
January 9, 2012 (Accession Number 0001193125-12-006210) and are not amended or
modified in any way by this Form N-CSR/A. The schedule of investments for the
Portfolio in response to Item 6 of this Form N-CSR/A is contained in the Form
N-CSR filed on January 9, 2012 (Accession Number 0001193125-12-006210) and is
incorporated by reference into this Form N-CSR/A. This Form N-CSR/A also
updates Item 11 "Controls and Procedures" and Item 12 "Exhibits." Other than
the aforementioned amendments, no other information or disclosures contained in
the Registrant's Form N-CSR filed on January 9, 2012 are being amended by this
Form N-CSR/A.
================================================================================
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] DIMENSIONAL
ANNUAL REPORT
year ended: October 31, 2011
DIMENSIONAL INVESTMENT GROUP INC.
DFA International Value Portfolio IV
Emerging Markets Portfolio II
[LOGO] DIMENSIONAL
Dimensional Fund Advisors
6300 Bee Cave Road, Building One
Austin, TX 78746
November 2011
Dear Fellow Shareholder,
Our investment approach at Dimensional is based on a very solid story about
risk and return. We keep a long-range focus built on that risk and return
relationship. We don't think we can forecast where the markets are headed. The
recent market volatility has reinforced our belief that Dimensional's approach
is the right one.
We've been fortunate this year to see strong positive inflows overall from our
clients even as the industry has generally experienced outflows. We're pleased
by this because it shows that clients understand and share our long-term,
disciplined philosophy. Working together in this way benefits us both. Clients
can stay focused on investment goals, and Dimensional can continue managing
assets to help meet those goals.
Our success over more than 30 years shows the ideas we built the firm on were
indeed the right ones. We're optimistic about the future.
Sincerely,
/s/ David G. Booth
David G. Booth
Chairman and Co-Chief Executive Officer
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ANNUAL REPORT
TABLE OF CONTENTS
PAGE
----
LETTER TO SHAREHOLDERS
DEFINITIONS OF ABBREVIATIONS AND FOOTNOTES................. 1
DIMENSIONAL INVESTMENT GROUP INC.
Performance Charts...................................... 2
Management's Discussion and Analysis.................... 3
Disclosure of Fund Expenses............................. 6
Disclosure of Portfolio Holdings........................ 8
Schedules of Investments
DFA International Value Portfolio IV................ 9
Emerging Markets Portfolio II....................... 9
Statements of Assets and Liabilities.................... 10
Statements of Operations................................ 11
Statements of Changes in Net Assets..................... 12
Financial Highlights.................................... 13
Notes to Financial Statements........................... 14
Report of Independent Registered Public Accounting Firm. 20
THE DFA INVESTMENT TRUST COMPANY
Performance Charts...................................... 21
Management's Discussion and Analysis.................... 22
Disclosure of Fund Expenses............................. 25
Disclosure of Portfolio Holdings........................ 26
Summary Schedules of Portfolio Holdings
The DFA International Value Series.................. 27
The Emerging Markets Series......................... 31
Statements of Assets and Liabilities.................... 35
Statements of Operations................................ 36
Statements of Changes in Net Assets..................... 37
Financial Highlights.................................... 38
Notes to Financial Statements........................... 39
Report of Independent Registered Public Accounting Firm. 47
FUND MANAGEMENT............................................ 48
VOTING PROXIES ON FUND PORTFOLIO SECURITIES................ 57
NOTICE TO SHAREHOLDERS..................................... 58
This report is submitted for the information of the Fund's shareholders. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
i
[THIS PAGE INTENTIONALLY LEFT BLANK]
DIMENSIONAL INVESTMENT GROUP INC.
THE DFA INVESTMENT TRUST COMPANY
DEFINITIONS OF ABBREVIATIONS AND FOOTNOTES
SCHEDULES OF INVESTMENTS/SUMMARY SCHEDULE OF PORTFOLIO HOLDINGS
Investment Abbreviations
ADR American Depositary Receipt
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GDR Global Depositary Receipt
P.L.C. Public Limited Company
Investment Footnotes
+ See Note B to Financial Statements.
++ Securities have generally been fair valued. See Note B to
Financial Statements.
** Calculated as a percentage of total net assets. Percentages
shown parenthetically next to the category headings have been
calculated as a percentage of total investments. "Other
Securities" are those securities that are not among the top 50
holdings of the Fund or do not represent more than 1.0% of the
net assets of the Fund. Some of the individual securities within
this category may include Total or Partial Securities on Loan
and/or Non-Income Producing Securities.
* Non-Income Producing Securities.
# Total or Partial Securities on Loan.
@ Security purchased with cash proceeds from Securities on Loan.
(S) Affiliated Fund.
FINANCIAL HIGHLIGHTS
(A) Computed using average shares outstanding.
(B) Annualized
(C) Non-Annualized
(D) Represents the combined ratios for the respective portfolio and
its respective pro-rata share of its Master Funds.
ALL STATEMENTS, SCHEDULES AND NOTES TO FINANCIAL STATEMENTS
-- Amounts designated as -- are either zero or rounded to zero.
RIC Registered Investment Company
SEC Securities and Exchange Commission
1
DIMENSIONAL INVESTMENT GROUP INC.
PERFORMANCE CHARTS
DFA INTERNATIONAL VALUE PORTFOLIO IV VS.
MSCI WORLD EX USA INDEX (NET DIVIDENDS)
OCTOBER 31, 2001-OCTOBER 31, 2011
GROWTH OF $10,000
10/31/2001 $ 23,250 $ 18,295
MSCI WORLD
EX USA
ROUNDED DFA International INDEX
VALU - 93 Value Portfolio IV (NET DIV.)
---------- ------------------ ----------
10/01 10/31/2001 10,000.00 10,000.00
11/30/2001 10,368.10 10,393.05
12/31/2001 10,408.25 10,459.69
1/31/2002 10,173.18 9,927.67
2/28/2002 10,290.71 9,988.19
3/31/2002 10,930.62 10,519.13
4/30/2002 11,309.34 10,581.25
5/31/2002 11,688.05 10,719.90
6/30/2002 11,348.51 10,283.85
7/31/2002 10,186.24 9,261.52
8/31/2002 10,173.18 9,247.14
9/30/2002 8,971.72 8,266.41
10/31/2002 9,232.91 8,700.64
11/30/2002 9,781.40 9,101.20
2003 12/31/2002 9,533.27 8,807.06
1/31/2003 9,206.79 8,471.49
2/28/2003 9,023.96 8,304.50
3/31/2003 8,801.95 8,144.45
4/30/2003 9,768.34 8,926.06
5/31/2003 10,512.72 9,479.67
6/30/2003 10,839.20 9,709.96
7/31/2003 11,335.45 9,932.72
8/31/2003 11,635.82 10,188.84
9/30/2003 12,079.83 10,494.52
10/31/2003 13,020.10 11,151.70
11/30/2003 13,307.41 11,404.48
2004 12/31/2003 14,306.44 12,278.97
1/31/2004 14,659.35 12,449.94
2/29/2004 15,107.27 12,736.28
3/31/2004 15,338.02 12,800.04
4/30/2004 14,876.53 12,464.99
5/31/2004 15,025.83 12,523.26
6/30/2004 15,650.21 12,812.46
7/31/2004 15,066.55 12,421.74
8/31/2004 15,256.58 12,473.38
9/30/2004 15,745.23 12,836.97
10/31/2004 16,356.03 13,298.30
11/30/2004 17,564.07 14,182.70
2005 12/31/2004 18,440.94 14,781.87
1/31/2005 18,260.56 14,490.86
2/28/2005 18,982.10 15,135.50
3/31/2005 18,510.32 14,791.94
4/30/2005 17,941.42 14,414.77
5/31/2005 17,969.17 14,441.06
6/30/2005 18,246.68 14,677.11
7/31/2005 19,065.36 15,151.11
8/31/2005 19,689.77 15,569.39
9/30/2005 20,244.80 16,279.93
10/31/2005 19,939.53 15,753.88
11/30/2005 20,300.30 16,171.07
2006 12/31/2005 21,284.41 16,920.86
1/31/2006 22,745.24 17,991.10
2/28/2006 22,964.37 17,930.68
3/31/2006 23,928.52 18,499.33
4/30/2006 25,141.02 19,383.92
5/31/2006 24,118.43 18,647.48
6/30/2006 23,972.35 18,623.47
7/31/2006 24,337.56 18,797.96
8/31/2006 25,170.24 19,332.22
9/30/2006 25,520.84 19,316.65
10/31/2006 26,660.29 20,080.04
11/30/2006 27,536.79 20,678.14
2007 12/31/2006 28,607.21 21,271.04
1/31/2007 29,155.01 21,400.80
2/28/2007 29,124.58 21,572.00
3/31/2007 30,068.01 22,124.75
4/30/2007 31,574.45 23,131.37
5/31/2007 32,654.83 23,645.05
6/30/2007 32,426.58 23,668.78
7/31/2007 31,513.58 23,341.60
8/31/2007 31,163.60 23,003.73
9/30/2007 32,791.78 24,310.66
10/31/2007 34,389.52 25,367.46
11/30/2007 32,304.85 24,375.45
2008 12/31/2007 31,597.45 23,917.24
1/31/2008 29,038.11 21,760.83
2/29/2008 28,667.89 22,155.18
3/31/2008 29,022.01 21,838.92
4/30/2008 30,309.73 23,052.85
5/31/2008 30,325.83 23,402.67
6/30/2008 27,331.88 21,582.81
7/31/2008 26,543.15 20,814.76
8/31/2008 25,432.49 20,009.79
9/30/2008 22,470.73 17,120.81
10/31/2008 16,836.95 13,559.35
11/30/2008 15,806.77 12,824.03
2009 12/31/2008 16,999.21 13,500.05
1/31/2009 14,650.29 12,240.40
2/28/2009 12,840.76 11,001.28
3/31/2009 14,250.11 11,726.22
4/30/2009 16,877.42 13,238.41
5/31/2009 19,382.93 14,912.63
6/30/2009 19,087.14 14,758.20
7/31/2009 21,349.06 16,143.96
8/31/2009 22,567.02 16,917.67
9/30/2009 23,732.78 17,615.66
10/31/2009 22,775.81 17,332.88
11/30/2009 23,454.39 17,761.74
2010 12/31/2009 23,732.30 18,044.88
1/31/2010 22,354.18 17,199.03
2/28/2010 22,425.78 17,181.80
3/31/2010 24,215.54 18,287.85
4/30/2010 23,803.90 18,015.17
5/31/2010 21,011.86 16,027.20
6/30/2010 20,636.01 15,795.35
7/31/2010 23,213.27 17,255.24
8/31/2010 22,085.72 16,739.48
9/30/2010 24,448.21 18,345.25
10/31/2010 25,307.30 18,998.78
11/30/2010 24,036.57 18,194.20
2011 12/31/2010 26,277.52 19,659.22
1/31/2011 27,396.88 20,082.72
2/28/2011 28,314.39 20,827.38
3/31/2011 27,525.33 20,410.15
4/30/2011 28,993.35 21,521.72
5/31/2011 27,947.39 20,883.72
6/30/2011 27,562.03 20,586.29
7/31/2011 26,681.22 20,246.71
8/31/2011 23,818.59 18,534.99
9/30/2011 21,231.21 16,673.65
10/11 10/31/2011 23,249.73 18,295.22
AVERAGE ANNUAL ONE FIVE TEN
TOTAL RETURN YEAR YEARS YEARS
-------------- ----- ----- -----
-8.13% -2.70% 8.80%
Past performance is not predictive of future performance.
The returns shown do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
MSCI data copyright MSCI 2011, all rights reserved.
EMERGING MARKETS PORTFOLIO II VS.
MSCI EMERGING MARKETS INDEX (NET DIVIDENDS)
OCTOBER 31, 2001-OCTOBER 31, 2011
GROWTH OF $10,000
10/31/2001
MSCI EMERGING
ROUNDED Emerging Markets MARKETS INDEX
EMGO - 92 Portfolio II (NET DIV.)
---------- ---------------- -------------
10/01 10/31/2001 10,000.00 10,000.00
11/30/2001 11,114.60 11,043.27
12/31/2001 11,970.48 11,919.10
1/31/2002 12,654.96 12,321.28
2/28/2002 12,479.86 12,521.02
3/31/2002 13,021.08 13,270.30
4/30/2002 13,148.43 13,355.36
5/31/2002 12,814.15 13,139.34
6/30/2002 11,827.22 12,150.05
7/31/2002 11,254.16 11,221.22
8/31/2002 11,286.00 11,392.69
9/30/2002 10,092.13 10,163.15
10/31/2002 10,506.01 10,823.45
11/30/2002 11,317.84 11,568.33
2003 12/31/2002 10,861.96 11,183.53
1/31/2003 10,845.77 11,134.20
2/28/2003 10,667.71 10,821.37
3/31/2003 10,489.64 10,512.33
4/30/2003 11,930.35 11,447.16
5/31/2003 12,804.49 12,265.59
6/30/2003 13,306.31 12,960.90
7/31/2003 13,581.50 13,766.84
8/31/2003 14,196.63 14,688.09
9/30/2003 14,844.14 14,795.06
10/31/2003 15,977.28 16,053.85
11/30/2003 15,831.59 16,249.19
2004 12/31/2003 17,502.45 17,425.74
1/31/2004 17,847.89 18,034.27
2/29/2004 18,637.48 18,861.27
3/31/2004 18,769.08 19,097.00
4/30/2004 17,568.25 17,533.32
5/31/2004 17,354.40 17,183.53
6/30/2004 17,650.50 17,256.72
7/31/2004 17,634.05 16,940.82
8/31/2004 18,127.54 17,643.35
9/30/2004 19,163.87 18,661.28
10/31/2004 19,706.71 19,107.15
11/30/2004 21,433.92 20,875.96
2005 12/31/2004 22,831.64 21,878.59
1/31/2005 23,015.90 21,934.15
2/28/2005 24,724.51 23,847.87
3/31/2005 23,032.65 22,271.83
4/30/2005 22,479.87 21,673.95
5/31/2005 23,149.91 22,428.37
6/30/2005 23,836.70 23,190.38
7/31/2005 25,377.80 24,811.33
8/31/2005 25,545.31 25,023.81
9/30/2005 27,588.93 27,353.90
10/31/2005 26,198.60 25,566.00
11/30/2005 28,124.97 27,680.93
2006 12/31/2005 29,746.50 29,317.06
1/31/2006 32,588.52 32,591.52
2/28/2006 32,502.40 32,552.84
3/31/2006 32,950.23 32,839.73
4/30/2006 34,931.04 35,178.14
5/31/2006 30,883.31 31,492.44
6/30/2006 30,848.86 31,415.46
7/31/2006 31,417.26 31,865.25
8/31/2006 32,399.05 32,677.19
9/30/2006 32,846.89 32,949.27
10/31/2006 34,810.47 34,513.80
11/30/2006 37,032.41 37,079.37
2007 12/31/2006 38,517.61 38,748.91
1/31/2007 39,097.48 38,331.68
2/28/2007 38,500.03 38,104.17
3/31/2007 40,239.65 39,621.55
4/30/2007 42,822.72 41,455.91
5/31/2007 45,686.94 43,509.21
6/30/2007 46,424.96 45,548.75
7/31/2007 47,531.99 47,952.05
8/31/2007 46,723.68 46,932.97
9/30/2007 50,835.51 52,115.94
10/31/2007 56,405.80 57,927.95
11/30/2007 52,733.27 53,821.63
2008 12/31/2007 52,513.86 54,010.37
1/31/2008 47,931.88 47,270.20
2/29/2008 49,471.14 50,759.33
3/31/2008 47,931.88 48,073.18
4/30/2008 51,350.47 51,974.50
5/31/2008 51,636.84 52,938.69
6/30/2008 46,338.92 47,658.72
7/31/2008 45,730.38 45,861.03
8/31/2008 43,009.82 42,197.96
9/30/2008 37,031.76 34,813.18
10/31/2008 27,277.14 25,285.56
11/30/2008 24,807.16 23,382.14
2009 12/31/2008 26,753.95 25,205.85
1/31/2009 24,688.67 23,578.05
2/28/2009 23,097.07 22,247.96
3/31/2009 26,412.89 25,445.15
4/30/2009 30,335.04 29,679.48
5/31/2009 35,507.72 34,750.69
6/30/2009 35,185.61 34,282.58
7/31/2009 39,221.44 38,137.59
8/31/2009 39,354.08 38,001.05
9/30/2009 42,821.48 41,450.42
10/31/2009 41,930.94 41,501.69
11/30/2009 44,432.02 43,284.42
2010 12/31/2009 46,022.94 44,993.77
1/31/2010 43,531.56 42,484.38
2/28/2010 44,053.01 42,633.91
3/31/2010 47,722.49 46,075.86
4/30/2010 48,012.18 46,634.07
5/31/2010 43,550.87 42,532.30
6/30/2010 43,608.81 42,219.64
7/31/2010 47,452.11 45,735.49
8/31/2010 46,351.26 44,847.26
9/30/2010 51,623.72 49,831.12
10/31/2010 53,168.76 51,278.04
11/30/2010 51,971.35 49,924.41
2011 12/31/2010 56,208.20 53,486.99
1/31/2011 54,747.74 52,035.83
2/28/2011 54,353.02 51,550.58
3/31/2011 57,372.63 54,581.43
4/30/2011 59,365.97 56,274.56
5/31/2011 57,727.88 54,798.52
6/30/2011 56,997.64 53,955.51
7/31/2011 56,543.72 53,715.88
8/31/2011 51,964.96 48,915.60
9/30/2011 44,110.02 41,783.97
10/11 10/31/2011 49,616.37 47,318.56
AVERAGE ANNUAL ONE FIVE TEN
TOTAL RETURN YEAR YEARS YEARS
-------------- ----- ----- -----
-6.68% 7.35% 17.37%
Past performance is not predictive of future performance.
Reimbursement fees applicable to purchases of shares prior to April 2002 are
not reflected in the graph and table.
The returns shown do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
MSCI data copyright MSCI 2011, all rights reserved.
2
DIMENSIONAL INVESTMENT GROUP INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
INTERNATIONAL EQUITY MARKET REVIEW 12 MONTHS ENDED OCTOBER 31, 2011
The one-year period ending October 31, 2011, was characterized by levels of
volatility in non-US developed markets not seen since 2008-09.
While broad market returns were positive through April 2011, stocks dropped
for five out of the next six months to end the period in negative territory,
with stocks represented by the MSCI World ex USA Index (net dividends)
returning -3.70% overall. The slide in August and September, accompanied by
poor US economic data and European debt worries among other factors, produced
some of the lowest monthly returns since 2008. October's rally produced some of
the best monthly returns since early 2009. As measured by the MSCI indices
below, growth stocks outperformed their value counterparts, while small cap
stocks outperformed large caps.
12 MONTHS ENDED OCTOBER 31, 2011
U.S. DOLLAR
RETURN
-----------
MSCI World ex USA Index........... -3.70%
MSCI World ex USA Small Cap Index. -2.01%
MSCI World ex USA Value Index..... -4.74%
MSCI World ex USA Growth Index.... -2.73%
--------
The US dollar (USD) generally depreciated against other major developed markets
curencies during the period. While the USD's value remained relatively constant
against the euro and British pound, it fell significantly against the Swiss
franc and Australian dollar, and to a lesser extent, against the Japanese yen.
12 MONTHS ENDED OCTOBER 31, 2011
LOCAL
CURRENCY U.S. DOLLAR
TEN LARGEST FOREIGN DEVELOPED MARKETS BY MARKET CAP RETURN RETURN
--------------------------------------------------- -------- -----------
United Kingdom......................................... 1.14% 2.10%
Japan.................................................. -5.45% -2.33%
Canada................................................. -2.57% -0.18%
France................................................. -11.83% -11.52%
Australia.............................................. -4.39% 3.49%
Switzerland............................................ -9.66% 2.03%
Germany................................................ -7.39% -7.07%
Spain.................................................. -15.21% -14.91%
Sweden................................................. -7.75% -4.35%
Hong Kong.............................................. -8.67% -8.82%
--------
Source: Returns are of MSCI standard indices net of foreign withholding taxes
on dividends. Copyright MSCI 2011, all rights reserved.
Losses in emerging markets were higher on average than in developed markets,
although results varied widely among the individual emerging markets countries.
For the one-year period ended October 31, 2011, returns in USD were -7.72% for
the MSCI Emerging Markets Index (net dividends) versus -3.70% for the MSCI
World ex USA Index (net dividends). As measured by the MSCI indices, emerging
markets growth stocks underperformed their value counterparts, while emerging
markets small cap stocks underperformed large caps.
3
12 MONTHS ENDED OCTOBER 31, 2011
U.S. DOLLAR
RETURN
-----------
MSCI Emerging Markets Index........... -7.72%
MSCI Emerging Markets Small Cap Index. -16.70%
MSCI Emerging Markets Value Index..... -6.99%
MSCI Emerging Markets Growth Index.... -8.45%
--------
The US dollar (USD) generally appreciated against most major emerging markets
currencies during the period.
12 MONTHS ENDED OCTOBER 31, 2011
LOCAL
CURRENCY U.S. DOLLAR
TEN LARGEST EMERGING MARKETS BY MARKET CAP RETURN RETURN
------------------------------------------ -------- -----------
China.................................................. -15.62% -15.76%
Brazil................................................. -12.71% -12.57%
South Korea............................................ 4.63% 6.24%
Taiwan................................................. -5.30% -3.07%
South Africa........................................... 10.15% -2.95%
India.................................................. -12.30% -19.99%
Russia................................................. -1.24% 0.22%
Mexico................................................. 5.26% -1.38%
Malaysia............................................... 2.08% 3.53%
Indonesia.............................................. 3.92% 4.92%
--------
Source: Returns are of MSCI standard indices net of foreign withholding taxes
on dividends. Copyright MSCI 2011, all rights reserved.
MASTER-FEEDER STRUCTURE
The Portfolios described below, called "Feeder Funds," do not buy individual
securities directly; instead, these portfolios invest in corresponding funds
called a "Master Fund." The Master Funds, in turn, purchase stocks and/or other
securities.
DFA INTERNATIONAL VALUE PORTFOLIO IV
The DFA International Value Portfolio IV seeks to capture the returns of
international large company value stocks by purchasing shares of The DFA
International Value Series, a Master Fund that invests in such stocks. The
investment strategy is process driven, emphasizing broad diversification and
consistent exposure to large cap value stocks, and does not attempt to track
any specific equity index. As of October 31, 2011, the Master Fund held
approximately 530 securities in 23 developed countries. In general, the Master
Fund was mostly invested in equities throughout the year. The average cash
level for the period was less than 1% of the Master Fund's assets.
For the 12 months ending October 31, 2011, total returns were -8.13% for the
Portfolio and -3.70% for the MSCI World ex USA Index (net dividends). The MSCI
Standard benchmarks indicate that on the whole, growth stocks outperformed
value stocks in international developed markets during the period. In
particular, there was an extremely wide performance difference between deep
value stocks and extreme growth stocks. The Master Fund's larger allocation to
deep value stocks, which underperformed, and significantly lower allocation to
extreme growth stocks, which outperformed, was the primary contributor to the
Portfolio's relative underperformance as compared to the Index. An additional
component of the Portfolio's relative underperformance was due to differences
in valuation timing and methodology between the Master Fund and the Index. The
Master Fund prices foreign exchange rates at the closing of the U.S. markets
while the Index uses rates at 4 pm London time. The Master Fund utilizes fair
value pricing to price portfolio securities at the closing of the U.S. markets
while the Index uses local market closing prices. The time of valuation of
currency and fair valuation adjustments can create differences between the
performance of the Portfolio and the Index.
4
EMERGING MARKETS PORTFOLIO II
The Emerging Markets Portfolio II seeks to capture the returns of large cap
stocks in selected emerging markets countries by purchasing shares of The
Emerging Markets Series, a Master Fund that invests in such securities. The
investment strategy is process driven, emphasizing broad diversification and
consistent exposure to large cap emerging markets stocks, and does not attempt
to track a specific equity index. As of October 31, 2011, the Master Fund held
approximately 850 securities across 20 emerging markets. In general, the
Portfolio was mostly invested in equities throughout the year. The average cash
level for the period was less than 1% of the Portfolio's assets. The Master
Fund's country weights were capped at 15% of assets associated with any one
country at the time of purchase by the manager to limit single-country risk
exposure.
For the 12 months ended October 31, 2011, total returns were -6.68% for the
Portfolio and -7.72% for the MSCI Emerging Markets Index (net dividends). As a
result of the Master Fund's diversified approach, performance was generally
determined by structural trends in emerging markets rather than the behavior of
a limited number of stocks. The Portfolio's relative outperformance as compared
to the Index was primarily due to differences in country weight allocations and
in the composition of the Master Fund's holdings relative to the Index. In
particular, the Master Fund's lower weight in China, which underperformed,
contributed significantly to the Portfolio's relative outperformance. The time
of valuation of currency and fair valuation adjustments can create differences
between the performance of the Portfolio and the Index.
5
DIMENSIONAL INVESTMENT GROUP INC.
DISCLOSURE OF FUND EXPENSES
(UNAUDITED)
The following Expense Tables are shown so that you can understand the impact
of fees on your investment. All mutual funds have operating expenses. As a
shareholder of the fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports, among
others. Operating expenses, legal and audit services, which are deducted from a
fund's gross income, directly reduce the investment return of the fund. A
fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs, in dollars, of investing in the fund and
to compare these costs with those of other mutual funds. The examples are based
on an investment of $1,000 made at the beginning of the period shown and held
for the entire period.
The Expense Tables below illustrate your fund's costs in two ways.
ACTUAL FUND RETURN
This section helps you to estimate the actual expenses after fee waivers
that you paid over the period. The "Ending Account Value" shown is
derived from the fund's actual return and "Expenses Paid During Period"
reflect the dollar amount that would have been paid by an investor who
started with $1,000 in the fund. You may use the information here,
together with the amount you invested, to estimate the expenses that you
paid over the period.
To do so, simply divide your account value by $1,000 (for example, a
$7,500 account value divided by $1,000 = 7.5), then multiply the result
by the number given for your fund under the heading "Expenses Paid
During Period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
This section is intended to help you compare your fund's costs with
those of other mutual funds. The hypothetical "Ending Account Value" and
"Expenses Paid During Period" are derived from the fund's actual expense
ratio and an assumed 5% annual return before expenses. In this case,
because the return used is not the fund's actual return, the results do
not apply to your investment. The example is useful in making
comparisons because the SEC requires all mutual funds to calculate
expenses based on a 5% annual return. You can assess your fund's costs
by comparing this hypothetical example with the hypothetical examples
that appear in shareholder reports of other funds.
Please note that the expenses shown in the tables are meant to highlight and
help you compare ongoing costs only and do not reflect any transactional costs,
if applicable. The "Annualized Expense Ratio" represents the actual expenses
for the six-month period indicated.
SIX MONTHS ENDED OCTOBER 31, 2011
EXPENSE TABLES
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
05/01/11 10/31/11 RATIO* PERIOD*
--------- --------- ---------- --------
DFA INTERNATIONAL VALUE PORTFOLIO IV
Actual Fund Return................... $1,000.00 $ 801.90 0.28% $1.27
Hypothetical 5% Annual Return........ $1,000.00 $1,023.79 0.28% $1.43
6
DISCLOSURE OF FUND EXPENSES
CONTINUED
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
05/01/11 10/31/11 RATIO* PERIOD*
--------- --------- ---------- --------
EMERGING MARKETS PORTFOLIO II
Actual Fund Return..................... $1,000.00 $ 835.78 0.40% $1.85
Hypothetical 5% Annual Return.......... $1,000.00 $1,023.19 0.40% $2.04
--------
* Expenses are equal to the fund's annualized expense ratio for the six-month
period, multiplied by the average account value over the period, multiplied
by the number of days in the most recent six-month period (184), then divided
by the number of days in the year (365) to reflect the six-month period. The
Portfolio is a Feeder Fund. The expenses shown reflect the direct expenses of
the Feeder Fund and the indirect payment of the Feeder Fund's portion of the
expenses of its Master Fund (Affiliated Investment Company).
7
DIMENSIONAL INVESTMENT GROUP INC.
DISCLOSURE OF PORTFOLIO HOLDINGS
(UNAUDITED)
The SEC requires that all Funds file a complete Schedule of Investments with
the SEC for their first and third fiscal quarters on Form N-Q. For Dimensional
Investment Group Inc., this would be for the fiscal quarters ending January 31
and July 31. The Form N-Q filing must be made within 60 days of the end of the
quarter. Dimensional Investment Group Inc. filed its most recent Form N-Q with
the SEC on September 28, 2011. It is available upon request, without charge, by
calling collect: (512) 306-7400 or by mailing a request to Dimensional Fund
Advisors LP, 6300 Bee Cave Road, Building One, Austin, Texas 78746, or by
visiting the SEC's website at http://www.sec.gov, or they may be reviewed and
copied at the SEC's Public Reference Room in Washington, D.C. (call
1-800-732-0330 for information on the operation of the Public Reference Room).
PORTFOLIO HOLDINGS
The SEC requires that all Funds present their categories of portfolio
holdings in a table, chart or graph format in their annual and semi-annual
shareholder reports, whether or not a Schedule of Investments is utilized. The
following table, which presents portfolio holdings as a percent of total
investments before short-term investments and collateral for loaned securities,
is provided in compliance with such requirement.
The categories of industry classification for the Affiliated Investment
Company are represented in the Disclosure of Portfolio Holdings, which are
included elsewhere within the report. Refer to the Summary Schedule of
Portfolio Holdings for the underlying Master Funds' holdings which reflect the
investments by category.
AFFILIATED INVESTMENT COMPANY
-----------------------------
DFA International Value Portfolio IV. 100.0%
Emerging Markets Portfolio II........ 100.0%
8
SCHEDULES OF INVESTMENTS
OCTOBER 31, 2011
DFA INTERNATIONAL VALUE PORTFOLIO IV
VALUE+
------------
AFFILIATED INVESTMENT COMPANY -- (100.0%)
Investment in The DFA International Value Series of
The DFA Investment Trust Company..................... $308,493,350
------------
TOTAL INVESTMENTS IN AFFILIATED INVESTMENT COMPANY
(Cost $271,714,262)............................... $308,493,350
============
See the summary of inputs used to value the Portfolio's Master Fund's
investments as of October 31, 2011 located within this report (See Security
Valuation Note).
EMERGING MARKETS PORTFOLIO II
VALUE+
------------
AFFILIATED INVESTMENT COMPANY -- (100.0%)
Investment in The Emerging Markets Series of
The DFA Investment Trust Company..................... $126,030,264
------------
TOTAL INVESTMENTS IN AFFILIATED INVESTMENT COMPANY
(Cost $50,019,296)................................ $126,030,264
============
See the summary of inputs used to value the Portfolio's Master Fund's
investments as of October 31, 2011 located within this report (See Security
Valuation Note).
See accompanying Notes to Financial Statements.
9
DIMENSIONAL INVESTMENT GROUP INC.
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2011
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
DFA INTERNATIONAL EMERGING MARKETS
VALUE PORTFOLIO IV PORTFOLIO II
------------------ ----------------
ASSETS:
Investment in Affiliated Investment
Company at Value...................... $ 308,493 $ 126,030
Receivables:
Affiliated Investment Company Sold... 159 152
Prepaid Expenses and Other Assets....... 11 2
------------ ------------
Total Assets..................... 308,663 126,184
------------ ------------
LIABILITIES:
Payables:
Fund Shares Redeemed................. 158 152
Due to Advisor....................... 7 15
Accrued Expenses and Other Liabilities.. 24 10
------------ ------------
Total Liabilities................ 189 177
------------ ------------
NET ASSETS.............................. $ 308,474 $ 126,007
============ ============
SHARES OUTSTANDING, $0.01 PAR VALUE (1). 24,337,836 5,011,767
============ ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE............ $ 12.67 $ 25.14
============ ============
Investment in Affiliated Investment
Company at Cost....................... $ 271,713 $ 50,019
------------ ------------
NET ASSETS CONSIST OF:
Paid-In Capital......................... $ 322,689 $ 110,790
Undistributed Net Investment Income
(Distributions in Excess of Net
Investment Income).................... 11,191 2,789
Accumulated Net Realized Gain (Loss).... (62,217) (63,582)
Net Unrealized Foreign Exchange Gain
(Loss)................................ 31 (1)
Net Unrealized Appreciation
(Depreciation)........................ 36,780 76,011
------------ ------------
NET ASSETS.............................. $ 308,474 $ 126,007
============ ============
(1) NUMBER OF SHARES AUTHORIZED......... 300,000,000 300,000,000
============ ============
See accompanying Notes to Financial Statements.
10
DIMENSIONAL INVESTMENT GROUP INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2011
(AMOUNTS IN THOUSANDS)
DFA INTERNATIONAL EMERGING MARKETS
VALUE PORTFOLIO IV PORTFOLIO II
------------------ ----------------
INVESTMENT INCOME
Dividends (Net of Foreign Taxes
Withheld of $1,008 and $453,
respectively)......................... $ 12,611 $ 3,823
Interest................................ 1 1
Income from Securities Lending.......... 625 163
Expenses Allocated from Affiliated
Investment Company.................... (830) (302)
-------- --------
Total Investment Income.......... 12,407 3,685
-------- --------
EXPENSES
Administrative Services Fees............ 80 224
Accounting & Transfer Agent Fees........ 16 14
Filing Fees............................. 20 21
Shareholders' Reports................... 19 8
Directors'/Trustees' Fees &
Expenses.............................. 3 1
Audit Fees.............................. 3 2
Legal Fees.............................. 9 4
Other................................... 3 2
-------- --------
Total Expenses................... 153 276
-------- --------
NET INVESTMENT INCOME (LOSS)............ 12,254 3,409
-------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
Net Realized Gain (Loss) on:
Investment Securities Sold.......... 13,017 8,578
Foreign Currency Transactions....... 34 (61)
Change in Unrealized Appreciation
(Depreciation) of:
Investment Securities............... (52,965) (20,798)
Translation of Foreign
Currency Denominated Amounts...... (37) (6)
Change in Deferred Thailand
Capital Gains Tax..................... -- 136
-------- --------
NET REALIZED AND UNREALIZED GAIN
(LOSS)................................ (39,951) (12,151)
-------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................ $(27,697) $ (8,742)
======== ========
--------
Investment Income and Realized and Unrealized Gain (Loss) were allocated
from each Portfolio's Master Fund (Affiliated Investment Company).
See accompanying Notes to Financial Statements.
11
DIMENSIONAL INVESTMENT GROUP INC.
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
DFA INTERNATIONAL EMERGING MARKETS
VALUE PORTFOLIO IV PORTFOLIO II
------------------ ------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31,
2011 2010 2011 2010
-------- -------- -------- --------
INCREASE (DECREASE) IN NET
ASSETS
Operations:
Net Investment Income (Loss)........ $ 12,254 $ 8,628 $ 3,409 $ 2,924
Net Realized Gain (Loss) on:
Investment Securities
Sold.......................... 13,017 21,682 8,578 11,782
Foreign Currency
Transactions.................. 34 (16) (61) 35
Change in Unrealized
Appreciation
(Depreciation) of:
Investment Securities........... (52,965) 5,088 (20,798) 19,774
Translation of Foreign
Currency Denominated
Amounts....................... (37) 54 (6) 1
Change in Deferred Thailand
Capital Gains Tax................. -- -- 136 (131)
-------- -------- -------- --------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations............ (27,697) 35,436 (8,742) 34,385
-------- -------- -------- --------
Distributions From:
Net Investment Income............... (8,815) (9,866) (3,370) (2,834)
-------- -------- -------- --------
Total Distributions.......... (8,815) (9,866) (3,370) (2,834)
-------- -------- -------- --------
Capital Share Transactions (1):
Shares Issued....................... 31,290 33,837 16,907 18,542
Shares Issued in Lieu of
Cash Distributions................ 8,815 9,866 3,370 2,834
Shares Redeemed..................... (48,655) (64,779) (38,249) (39,042)
-------- -------- -------- --------
Net Increase
(Decrease) from
Capital Share
Transactions............... (8,550) (21,076) (17,972) (17,666)
-------- -------- -------- --------
Total Increase
(Decrease) in Net
Assets..................... (45,062) 4,494 (30,084) 13,885
NET ASSETS
Beginning of Period................. 353,536 349,042 156,091 142,206
-------- -------- -------- --------
End of Period....................... $308,474 $353,536 $126,007 $156,091
======== ======== ======== ========
(1) SHARES ISSUED AND REDEEMED:
Shares Issued....................... 2,153 2,568 614 759
Shares Issued in Lieu of
Cash Distributions................ 630 755 123 122
Shares Redeemed..................... (3,444) (4,981) (1,395) (1,637)
-------- -------- -------- --------
Net Increase
(Decrease)
from Shares Issued
and Redeemed............... (661) (1,658) (658) (756)
======== ======== ======== ========
UNDISTRIBUTED NET INVESTMENT
INCOME (DISTRIBUTIONS IN
EXCESS OF NET INVESTMENT
INCOME).............................. $ 11,191 $ 7,681 $ 2,789 $ 2,811
See accompanying Notes to Financial Statements.
12
DIMENSIONAL INVESTMENT GROUP INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
DFA INTERNATIONAL VALUE PORTFOLIO IV
----------------------------------------------------------------- ----------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED DEC. 1, 2007 ENDED ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, TO NOV. 30, NOV. 30, OCT. 31,
2011 2010 2009 OCT. 31, 2008 2007 2006 2011
-------- -------- -------- ------------- -------- -------- --------
Net Asset Value, Beginning of
Period............................... $ 14.14 $ 13.09 $ 10.46 $ 21.23 $ 18.85 $ 14.63 $ 27.53
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations
Net Investment Income (Loss)(A)..... 0.49 0.33 0.34 0.62 0.63 0.57 0.63
Net Gains (Losses) on
Securities (Realized and
Unrealized)....................... (1.61) 1.09 3.05 (10.29) 2.53 4.41 (2.42)
-------- -------- -------- -------- -------- -------- --------
Total from Investment
Operations.................... (1.12) 1.42 3.39 (9.67) 3.16 4.98 (1.79)
-------- -------- -------- -------- -------- -------- --------
Less Distributions
Net Investment Income............... (0.35) (0.37) (0.76) (0.64) (0.48) (0.36) (0.60)
Net Realized Gains.................. -- -- -- (0.46) (0.30) (0.40) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions............. (0.35) (0.37) (0.76) (1.10) (0.78) (0.76) (0.60)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 12.67 $ 14.14 $ 13.09 $ 10.46 $ 21.23 $ 18.85 $ 25.14
======== ======== ======== ======== ======== ======== ========
Total Return........................... (8.13)% 11.12% 35.27% (47.88)%(C) 17.32% 35.65% (6.68)%
-------- -------- -------- -------- -------- -------- --------
Net Assets, End of Period
(thousands).......................... $308,474 $353,536 $349,042 $303,822 $729,621 $565,255 $126,007
Ratio of Expenses to Average Net
Assets (D)........................... 0.28% 0.28% 0.30% 0.26%(B) 0.25% 0.27% 0.39%
Ratio of Expenses to Average Net
Assets
(Excluding Waivers and
Assumption of Expenses and/
or Recovery of Previously
Waived Fees) (D).................. 0.28% 0.28% 0.30% 0.26%(B) 0.25% 0.27% 0.39%
Ratio of Net Investment Income to
Average Net Assets................... 3.45% 2.52% 3.28% 3.93%(B) 3.07% 3.42% 2.28%
EMERGING MARKETS PORTFOLIO II
------------------------------------------------------
YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED DEC. 1, 2007 ENDED ENDED
OCT. 31, OCT. 31, TO NOV. 30, NOV. 30,
2010 2009 OCT. 31, 2008 2007 2006
-------- -------- ------------- -------- --------
Net Asset Value, Beginning of
Period............................... $ 22.13 $ 15.24 $ 30.01 $ 21.50 $ 16.79
-------- -------- -------- -------- -------
Income from Investment Operations
Net Investment Income (Loss)(A)..... 0.48 0.41 0.68 0.53 0.45
Net Gains (Losses) on
Securities (Realized and
Unrealized)....................... 5.37 7.29 (14.92) 8.42 4.74
-------- -------- -------- -------- -------
Total from Investment
Operations.................... 5.85 7.70 (14.24) 8.95 5.19
-------- -------- -------- -------- -------
Less Distributions
Net Investment Income............... (0.45) (0.81) (0.31) (0.44) (0.48)
Net Realized Gains.................. -- -- (0.22) -- --
-------- -------- -------- -------- -------
Total Distributions............. (0.45) (0.81) (0.53) (0.44) (0.48)
-------- -------- -------- -------- -------
Net Asset Value, End of Period......... $ 27.53 $ 22.13 $ 15.24 $ 30.01 $ 21.50
======== ======== ======== ======== =======
Total Return........................... 26.80% 53.72% (48.27)%(C) 42.40% 31.67%
-------- -------- -------- -------- -------
Net Assets, End of Period
(thousands).......................... $156,091 $142,206 $112,592 $310,627 $62,633
Ratio of Expenses to Average Net
Assets (D)........................... 0.37% 0.39% 0.35%(B) 0.39% 0.35%
Ratio of Expenses to Average Net
Assets
(Excluding Waivers and
Assumption of Expenses and/
or Recovery of Previously
Waived Fees) (D).................. 0.37% 0.39% 0.35%(B) 0.43% 0.74%
Ratio of Net Investment Income to
Average Net Assets................... 2.00% 2.42% 2.82%(B) 2.13% 2.38%
See page 1 for the Definitions of Abbreviations and Footnotes.
See accompanying Notes to Financial Statements.
13
DIMENSIONAL INVESTMENT GROUP INC.
NOTES TO FINANCIAL STATEMENTS
A. ORGANIZATION:
Dimensional Investment Group Inc. (the "Fund") is an open-end management
investment company registered under the Investment Company Act of 1940, whose
shares are offered to institutional investors, retirement plans and clients of
registered investment advisors. The Fund consists of fifteen portfolios, of
which DFA International Value Portfolio IV and Emerging Markets Portfolio II
(the "Portfolios") are presented in this report.
DFA International Value Portfolio IV and Emerging Markets Portfolio II
primarily invest their assets in The DFA International Value Series and The
Emerging Markets Series (the "Series"), respectively, each a corresponding
Series of The DFA Investment Trust Company. At October 31, 2011, DFA
International Value Portfolio IV and Emerging Markets Portfolio II owned 4% and
5% of their respective Series. The financial statements of the Series are
included elsewhere in this report and should be read in conjunction with the
financial statements of the Portfolios.
On November 1, 2008, The DFA International Value Series, a master fund in a
RIC/RIC master-feeder structure, elected with the consent of its respective
Holder(s) to change its U.S. federal income tax classification from that of an
association taxable as a corporation to a partnership pursuant to Treasury
Regulation (S) 301.7701-3. The change in capital structure and retroactive
reclassification of the statement of changes in net assets and financial
highlights for the respective funds is a result of the treatment of a
partnership for book purposes. The Series/Portfolio will maintain its books and
records and present its financial statements in accordance with generally
accepted accounting principles for investment partnerships.
At a regular meeting of the Board of Directors/Trustees (the "Board") on
September 16, 2008, the Board voted to change the fiscal and tax year ends of
the Portfolios from November 30 to October 31.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
accounting principles generally accepted in the United States of America. Such
policies are consistently followed by the Fund in preparation of its financial
statements. The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates and those differences
could be material.
1. Security Valuation: The Portfolios utilize a fair value hierarchy which
prioritizes the inputs to valuation techniques used to measure fair value into
three broad levels described below:
. Level 1 - quoted prices in active markets for identical securities
. Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds, credit risk,
etc.)
. Level 3 - significant unobservable inputs (including the Portfolio's own
assumptions in determining the fair value of investments)
The Portfolios' investment reflects its proportionate interest in the net
assets of the Series. These valuations are classified as Level 1 in the
hierarchy.
A summary of the inputs used to value the Portfolios' investments is
disclosed at the end of the Schedule of Investments. The inputs or methodology
used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities.
14
The Portfolios did not have any significant transfers between Level 1 and
Level 2 during the year ended October 31, 2011.
2. Deferred Compensation Plan: Each eligible Director of the Fund may elect
participation in The Fee Deferral Plan for Independent Directors and Trustees
(the "Plan"). Under the Plan, effective January 1, 2002, such Directors may
defer payment of all or a portion of their total fees earned as a Director.
These deferred amounts may be treated as though such amounts had been invested
in shares of the following funds: U.S. Large Cap Value Portfolio; U.S. Core
Equity 1 Portfolio; U.S. Core Equity 2 Portfolio; U.S. Vector Equity Portfolio;
U.S. Micro Cap Portfolio; DFA International Value Portfolio; International Core
Equity Portfolio; Emerging Markets Portfolio; Emerging Markets Core Equity
Portfolio; and/or DFA Two-Year Global Fixed Income Portfolio. Contributions
made under the Plan and the change in unrealized appreciation (depreciation)
and income are included in Directors'/Trustees' Fees & Expenses.
Each Director has the option to receive their distribution of proceeds in
one of the following methods: lump sum; annual installments over a period of
agreed upon years; or quarterly installments over a period of agreed upon
years. Each Director shall have the right in a notice of election to defer
compensation (the "Notice") to elect to defer the receipt of the Director's
deferred compensation until a date specified by such Director in the Notice,
which date may not be sooner than the earlier of: (i) the first business day of
January following the year in which such Director ceases to be a member of the
Board of the Fund; and (ii) five years following the effective date of the
Director's first deferral election. If a Director who elects to defer fees
fails to designate in the Notice a time or date as of which payment of the
Director's deferred fee account shall commence, payment of such amount shall
commence as of the first business day of January following the year in which
the Director ceases to be a member of the Board of the Fund (unless the
Director files an amended Notice selecting a different distribution date). As
of October 31, 2011, none of the Directors have requested or received a
distribution of proceeds of a deferred fee account.
3. Other: The Portfolios recognize their pro-rata share, on a daily basis,
of net investment income and realized and unrealized gains and losses of
investment securities from the Series', which is treated as a partnership for
federal income tax purposes. Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Distributions received on securities that
represent a return of capital or capital gain are recorded as a reduction of
cost of investments or as a realized gain, respectively. The Portfolios
estimate the character of distributions received that may be considered return
of capital distributions. Expenses directly attributable to the Portfolios are
directly charged. Common expenses of the Fund are allocated using methods
approved by the Board of Directors/Trustees, generally based on average net
assets.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors LP ("Dimensional" or the "Advisor") provides
administrative services to the Portfolios, including supervision of services
provided by others, providing information to the shareholders and to the Board
of Directors/Trustees, and other administrative services. The Advisor provides
investment advisory services to the Series. For the year ended October 31,
2011, the Portfolios' administrative services fees were accrued daily and paid
monthly to the Advisor based on an effective annual rate of 0.20% of the first
$40 million of average daily net assets and no fees on assets exceeding $40
million for DFA International Value Portfolio IV and based on an effective
annual rate of 0.15% of average daily net assets for Emerging Markets Portfolio
II.
FEES PAID TO OFFICERS AND DIRECTORS/TRUSTEES:
Certain Officers and Directors/Trustees of the Advisor are also Officers and
Directors/Trustees of the Fund; however, such Officers and Directors/Trustees
(with the exception of the Chief Compliance Officer ("CCO")) receive no
compensation from the Fund. For the year ended October 31, 2011, the total
related amounts paid by the Fund to the CCO were $32 (in thousands). The total
related amounts paid by the Portfolios are included in Other Expenses on the
Statement of Operations.
15
D. DEFERRED COMPENSATION:
At October 31, 2011, the total liability for deferred compensation to
Directors/Trustees is included in Accrued Expenses and other Liabilities on the
Statement of Assets and Liabilities as follows (amounts in thousands):
DFA International Value Portfolio IV. $10
Emerging Markets Portfolio II........ 4
E. FEDERAL INCOME TAXES:
Each Portfolio has qualified and intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code
for federal income tax purposes and to distribute substantially all of its
taxable income and net capital gains to shareholders. Accordingly, no provision
has been made for federal income taxes.
Distributions from net investment income and net realized capital gains are
determined in accordance with U.S. federal income tax regulations, which may
differ from those amounts determined under accounting principles generally
accepted in the United States of America. These book/tax differences are either
temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to paid-in capital, undistributed net
investment income or accumulated net realized gains, as appropriate, in the
period that the differences arise. Accordingly, the following permanent
differences as of October 31, 2011, primarily attributable to net foreign
currency gains/losses, realized gains on securities considered to be "passive
foreign investment companies" and distribution redesignations, were classified
to the following accounts. The reclassifications had no effect on net assets or
net asset value per share (amounts in thousands):
INCREASE INCREASE
(DECREASE) (DECREASE)
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT NET REALIZED
INCOME GAINS (LOSSES)
-------------- --------------
DFA International Value Portfolio IV. $ 71 $(71)
Emerging Markets Portfolio II........ (61) 61
The tax character of dividends and distributions declared and paid during
the year ended October 31, 2010 and the year ended October 31, 2011 were as
follows (amounts in thousands):
NET INVESTMENT
INCOME
AND SHORT-TERM LONG-TERM
CAPITAL GAINS CAPITAL GAINS TOTAL
-------------- ------------- ------
DFA International Value Portfolio IV
2010................................. $9,866 -- $9,866
2011................................. 8,815 -- 8,815
Emerging Markets Portfolio II
2010................................. 2,834 -- 2,834
2011................................. 3,370 -- 3,370
At October 31, 2011, the components of distributable earnings/(accumulated
losses) were as follows (amounts in thousands):
UNDISTRIBUTED
NET TOTAL NET
INVESTMENT DISTRIBUTABLE
INCOME AND UNDISTRIBUTED CAPITAL EARNINGS/
SHORT-TERM LONG-TERM LOSS (ACCUMULATED
CAPITAL GAINS CAPITAL GAINS CARRYFORWARD LOSSES)
------------- ------------- ------------ -------------
DFA International
Value Portfolio IV... $11,314 -- $(62,206) $(50,892)
Emerging Markets
Portfolio II......... 2,795 -- (63,588) (60,793)
16
For federal income tax purposes, the Fund measures its capital loss
carryforwards annually at October 31, its fiscal year end. Capital loss
carryforwards may be carried forward and applied against future capital gains.
As of October 31, 2011, DFA International Value Portfolio IV and Emerging
Markets Portfolio II Portfolios had capital loss carryforwards of $62,206 and
$63,588 (in thousands), respectively, available to offset future realized
capital gains through October 31, 2016. During the year ended October 31, 2011,
DFA International Value Portfolio IV and Emerging Markets Portfolio II
Portfolios utilized capital loss carryforwards to offset realized capital gains
for federal income tax purposes in the amount of $12,980 and $8,638 (in
thousands), respectively.
At October 31, 2011, the total cost and aggregate gross unrealized
appreciation and (depreciation) of securities for federal income tax purposes
were different from amounts reported for financial reporting purposes (amounts
in thousands):
NET
UNREALIZED
FEDERAL UNREALIZED UNREALIZED APPRECIATION
TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
-------- ------------ -------------- --------------
DFA International Value
Portfolio IV........... $271,836 $69,033 $(32,376) $36,657
Emerging Markets
Portfolio II........... 50,013 76,017 -- 76,017
The difference between book basis and tax-basis unrealized appreciation
(depreciation) is primarily attributable to the tax deferral of losses on wash
sales and on investments in passive foreign investment companies.
Accounting for Uncertainty in Income Taxes sets forth a minimum threshold
for financial statement recognition of the benefit of a tax position taken or
expected to be in a tax return. Management has analyzed the Portfolios' tax
position and has concluded that no provision for income tax is required in the
Portfolios' financial statements. The Portfolios are not aware of any tax
position for which it is more likely than not that the total amounts of
unrecognized tax benefits will significantly change in the next twelve months.
The Portfolios' federal tax returns for the prior three fiscal years remain
subject to examination by the Internal Revenue Service.
On November 1, 2008, The DFA International Value Series, a master fund in a
RIC/RIC master-feeder structure with five RIC feeders and other direct client
investor(s), made a "Check-the-box" election for federal income tax purposes
pursuant to Treasury Regulation (S)301.7701-3, to change its federal entity
classification from a corporation taxable as a regulated investment company to
a partnership. As a result of this election, the master fund is deemed to have
distributed all of its assets and liabilities, in a taxable transaction, to its
shareholders in liquidation of the master fund. Immediately thereafter, the
shareholders contributed all of the distributed assets and liabilities to a
newly formed partnership. The final tax year end of The DFA International Value
Series was October 31, 2008. For Federal income tax purposes, pursuant to
Internal Revenue Code (S)336(a), the master fund recognizes gain or loss as if
the master's investment securities were sold to its shareholders and, pursuant
to IRC Code (S)331, each of the Portfolios recognizes gain or loss as if it
liquidated its investment in the master. As a result of the transaction, The
DFA International Value Series recognized a ($2,309,440,866) and ($718,733)
capital and currency loss respectively for tax year ended October 31, 2008. For
tax purposes, pursuant to IRC Code (S)334(a), each of the Portfolios will take
a fair market value basis in the securities deemed received by them and a new
holding period for those securities commences on the deemed liquidation date.
F. LINE OF CREDIT:
The Fund, together with other Dimensional-advised portfolios, has entered
into a $250 million unsecured discretionary line of credit effective June 22,
2011 with its domestic custodian bank. Each portfolio is permitted to borrow,
subject to its investment limitations, up to a maximum of $250 million, as long
as total borrowings under the line of credit do not exceed $250 million in the
aggregate. Borrowings under the line of credit are charged interest at rates
agreed to by the parties at the time of borrowing. Each portfolio is
individually, and not jointly, liable for its particular advances under the
line of credit. There is no commitment fee on the unused portion of the line of
credit. The agreement for the discretionary line of credit may be terminated by
either party at any time. The line of credit is scheduled to expire on June 22,
2012. There were no borrowings by the Portfolios under this line of credit
during the year ended October 31, 2011.
17
The Fund, together with other Dimensional-advised portfolios, has also
entered into an additional $500 million unsecured line of credit effective
January 15, 2011 with its international custodian bank. Each portfolio is
permitted to borrow, subject to its investment limitations, up to a maximum of
$500 million, as long as total borrowings under the line of credit do not
exceed $500 million in the aggregate. Each portfolio is individually, and not
jointly, liable for its particular advances under the line of credit.
Borrowings under the line of credit are charged interest at rates agreed to by
the parties at the time of borrowing. There is no commitment fee on the unused
portion of the line of credit. The agreement for the line of credit expires on
January 13, 2012. The Fund, together with other Dimensional-advised portfolios,
expects to enter into a new line of credit with substantially the same terms as
its existing line of credit prior to its expiration. There were no borrowings
by the Portfolios under this line of credit during the year ended October 31,
2011.
G. INDEMNITEES; CONTRACTUAL OBLIGATIONS:
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of the
duties to the Fund.
In the normal course of business, the Fund enters into contracts that
contain a variety of representations and warranties which provide general
indemnification. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
H. RECENTLY ISSUED ACCOUNTING STANDARDS:
In January 2010, the Financial Accounting Standards Board ("FASB") issued
Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about
Fair Value Measurements." ASU No. 2010-06 amends FASB Accounting Standards
Codification Topic 820, Fair Value Measurements and Disclosures, to require
additional disclosures in the roll forward of activity in Level 3 fair value
measurements effective for interim and annual reporting periods beginning after
December 15, 2010. Management is currently evaluating the impact ASU
No. 2010-06 will have on its financial statement disclosures.
In May 2011, the FASB issued ASU No. 2011-04 "Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. Generally Accepted
Accounting Principles ("GAAP") and International Financial Reporting Standards
("IFRSs")." ASU 2011-04 includes common requirements for measurement of and
disclosure about fair value between U.S. GAAP and IFRSs. ASU 2011-04 will
require reporting entities to disclose quantitative information about the
unobservable inputs used in the fair value measurements categorized within
Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require
reporting entities to make disclosures about amounts and reasons for all
transfers in and out of Level 1 and Level 2 fair value measurements. The new
and revised disclosures are effective for interim and annual reporting periods
beginning after December 15, 2011. At this time, management is evaluating the
implications of ASU No. 2011-04 and its impact on the financial statements has
not been determined.
Under the recently enacted Regulated Investment Company Modernization Act of
2010, Funds will be permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period.
However, any losses incurred during those future taxable years will be required
to be utilized prior to the losses incurred in pre-enactment taxable years. As
a result of this ordering rule, pre-enactment capital loss carryforwards may be
more likely to expire unused. Additionally, post enactment capital losses that
are carried forward will retain their character as either short-term or
long-term capital losses rather than being considered all short-term as under
previous law.
18
I. OTHER:
At October 31, 2011, the following number of shareholders held the following
approximate percentages of outstanding shares of the Portfolios.
APPROXIMATE
PERCENTAGE
NUMBER OF OF OUTSTANDING
SHAREHOLDERS SHARES
------------ --------------
DFA International Value Portfolio IV. 1 100%
Emerging Markets Portfolio II........ 2 100%
The Portfolios are subject to claims and suits that arise from time to time
in the ordinary course of business (for example, in The Tribune Company
Bankruptcy, certain creditors have filed actions against all shareholders of
The Tribune Company who tendered shares when the Tribune Company went private
in 2007 in a leveraged buy-out transaction, seeking the return of all proceeds
received by the shareholders). Although management currently believes that
resolving claims against us, individually or in aggregate, will not have a
material adverse impact on our financial position, our results of operations,
or our cash flows, these matters are subject to inherent uncertainties and
management's view of these matters may change in the future.
J. SUBSEQUENT EVENT EVALUATIONS:
Management has evaluated the impact of all subsequent events on the
Portfolios and has determined that there are no subsequent events requiring
recognition or disclosure in the financial statements.
19
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS OF THE PORTFOLIOS, AS DEFINED, AND
BOARD OF DIRECTORS OF DIMENSIONAL INVESTMENT GROUP INC.:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of DFA International
Value Portfolio IV and Emerging Markets Portfolio II (constituting portfolios
within Dimensional Investment Group Inc., hereafter referred to as the
"Portfolios") at October 31, 2011, the results of each of their operations for
the year then ended, the changes in each of their net assets and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Portfolios' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at October 31, 2011 by
correspondence with the transfer agent of the investee fund, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 22, 2011
20
THE DFA INVESTMENT TRUST COMPANY
PERFORMANCE CHARTS
THE DFA INTERNATIONAL VALUE SERIES VS.
MSCI WORLD EX USA INDEX (NET DIVIDENDS)
OCTOBER 31, 2001-OCTOBER 31, 2011
GROWTH OF $10,000
10/31/2001
MSCI WORLD
DFA EX USA
ROUNDED International INDEX (NET
VALU - 46 Value Series DIV.)
---------- ------------- ----------
10/01 10/31/2001 10,000.00 10,000.00
11/30/2001 10,366.45 10,393.05
12/31/2001 10,409.11 10,459.69
1/31/2002 10,183.27 9,927.67
2/28/2002 10,296.19 9,988.19
3/31/2002 10,942.91 10,519.13
4/30/2002 11,312.46 10,581.25
5/31/2002 11,692.28 10,719.90
6/30/2002 11,364.25 10,283.85
7/31/2002 10,201.88 9,261.52
8/31/2002 10,191.50 9,247.14
9/30/2002 8,980.01 8,266.41
10/31/2002 9,241.06 8,700.64
11/30/2002 9,793.32 9,101.20
2003 12/31/2002 9,544.58 8,807.06
1/31/2003 9,229.23 8,471.49
2/28/2003 9,040.02 8,304.50
3/31/2003 8,825.93 8,144.45
4/30/2003 9,794.89 8,926.06
5/31/2003 10,532.14 9,479.67
6/30/2003 10,871.88 9,709.96
7/31/2003 11,363.15 9,932.72
8/31/2003 11,662.18 10,188.84
9/30/2003 12,108.49 10,494.52
10/31/2003 13,063.02 11,151.70
11/30/2003 13,342.64 11,404.48
2004 12/31/2003 14,343.90 12,278.97
1/31/2004 14,711.14 12,449.94
2/29/2004 15,153.99 12,736.28
3/31/2004 15,390.55 12,800.04
4/30/2004 14,925.81 12,464.99
5/31/2004 15,077.12 12,523.26
6/30/2004 15,699.97 12,812.46
7/31/2004 15,120.91 12,421.74
8/31/2004 15,317.57 12,473.38
9/30/2004 15,807.56 12,836.97
10/31/2004 16,412.16 13,298.30
11/30/2004 17,632.35 14,182.70
2005 12/31/2004 18,510.44 14,781.87
1/31/2005 18,326.26 14,490.86
2/28/2005 19,051.48 15,135.50
3/31/2005 18,581.17 14,791.94
4/30/2005 18,016.70 14,414.77
5/31/2005 18,039.74 14,441.06
6/30/2005 18,328.87 14,677.11
7/31/2005 19,146.60 15,151.11
8/31/2005 19,777.42 15,569.39
9/30/2005 20,333.48 16,279.93
10/31/2005 20,028.07 15,753.88
11/30/2005 20,384.62 16,171.07
2006 12/31/2005 21,382.98 16,920.86
1/31/2006 22,843.40 17,991.10
2/28/2006 23,062.46 17,930.68
3/31/2006 24,036.07 18,499.33
4/30/2006 25,253.09 19,383.92
5/31/2006 24,230.80 18,647.48
6/30/2006 24,078.31 18,623.47
7/31/2006 24,449.12 18,797.96
8/31/2006 25,289.64 19,332.22
9/30/2006 25,639.80 19,316.65
10/31/2006 26,778.52 20,080.04
11/30/2006 27,668.30 20,678.14
2007 12/31/2006 28,747.31 21,271.04
1/31/2007 29,289.47 21,400.80
2/28/2007 29,263.65 21,572.00
3/31/2007 30,209.59 22,124.75
4/30/2007 31,734.28 23,131.37
5/31/2007 32,819.65 23,645.05
6/30/2007 32,579.84 23,668.78
7/31/2007 31,673.75 23,341.60
8/31/2007 31,319.19 23,003.73
9/30/2007 32,954.25 24,310.66
10/31/2007 34,552.43 25,367.46
11/30/2007 32,459.31 24,375.45
2008 12/31/2007 31,760.16 23,917.24
1/31/2008 29,187.33 21,760.83
2/29/2008 28,815.70 22,155.18
3/31/2008 29,161.07 21,838.92
4/30/2008 30,463.80 23,052.85
5/31/2008 30,478.12 23,402.67
6/30/2008 27,464.21 21,582.81
7/31/2008 26,686.64 20,814.76
8/31/2008 25,571.64 20,009.79
9/30/2008 22,584.98 17,120.81
10/31/2008 16,921.43 13,559.35
11/30/2008 15,883.30 12,824.03
2009 12/31/2008 17,084.56 13,500.05
1/31/2009 14,726.53 12,240.40
2/28/2009 12,917.23 11,001.28
3/31/2009 14,326.12 11,726.22
4/30/2009 16,965.92 13,238.41
5/31/2009 19,487.08 14,912.63
6/30/2009 19,190.47 14,758.20
7/31/2009 21,474.34 16,143.96
8/31/2009 22,705.26 16,917.67
9/30/2009 23,862.03 17,615.66
10/31/2009 22,912.89 17,332.88
11/30/2009 23,595.08 17,761.74
2010 12/31/2009 23,862.03 18,044.88
1/31/2010 22,482.81 17,199.03
2/28/2010 22,571.79 17,181.80
3/31/2010 24,351.43 18,287.85
4/30/2010 23,936.18 18,015.17
5/31/2010 21,133.24 16,027.20
6/30/2010 20,762.49 15,795.35
7/31/2010 23,357.80 17,255.24
8/31/2010 22,215.86 16,739.48
9/30/2010 24,603.55 18,345.25
10/31/2010 25,463.71 18,998.78
11/30/2010 24,188.30 18,194.20
2011 12/31/2010 26,442.51 19,659.22
1/31/2011 27,569.62 20,082.72
2/28/2011 28,489.10 20,827.38
3/31/2011 27,703.09 20,410.15
4/30/2011 29,186.12 21,521.72
5/31/2011 28,133.17 20,883.72
6/30/2011 27,747.58 20,586.29
7/31/2011 26,857.76 20,246.71
8/31/2011 23,980.67 18,534.99
9/30/2011 21,355.70 16,673.65
10/11 10/31/2011 23,417.12 18,295.22
AVERAGE ANNUAL ONE FIVE TEN
TOTAL RETURN YEAR YEARS YEARS
-------------- ----- ----- -----
-8.04% -2.65% 8.88%
Past performance is not predictive of future performance.
The returns shown do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
MSCI data copyright MSCI 2011, all rights reserved.
THE EMERGING MARKETS SERIES VS.
MSCI EMERGING MARKETS INDEX (NET DIVIDENDS)
OCTOBER 31, 2001-OCTOBER 31, 2011
GROWTH OF $10,000
10/31/2001
Emerging MSCI EMERGING
ROUNDED Markets MARKETS INDEX
EMGO - 55 Series (NET DIV.)
---------- --------- -------------
10/01 10/31/2001 10,000.00 10,000.00
11/30/2001 11,107.23 11,043.27
12/31/2001 11,969.70 11,919.10
1/31/2002 12,634.03 12,321.28
2/28/2002 12,470.86 12,521.02
3/31/2002 13,006.99 13,270.30
4/30/2002 13,146.85 13,355.36
5/31/2002 12,808.86 13,139.34
6/30/2002 11,841.49 12,150.05
7/31/2002 11,270.40 11,221.22
8/31/2002 11,305.36 11,392.69
9/30/2002 10,116.55 10,163.15
10/31/2002 10,536.13 10,823.45
11/30/2002 11,340.33 11,568.33
2003 12/31/2002 10,885.78 11,183.53
1/31/2003 10,874.13 11,134.20
2/28/2003 10,710.96 10,821.37
3/31/2003 10,536.13 10,512.33
4/30/2003 11,958.04 11,447.16
5/31/2003 12,832.17 12,265.59
6/30/2003 13,333.33 12,960.90
7/31/2003 13,601.40 13,766.84
8/31/2003 14,219.11 14,688.09
9/30/2003 14,860.14 14,795.06
10/31/2003 15,990.68 16,053.85
11/30/2003 15,839.16 16,249.19
2004 12/31/2003 17,505.83 17,425.74
1/31/2004 17,843.82 18,034.27
2/29/2004 18,636.36 18,861.27
3/31/2004 18,764.57 19,097.00
4/30/2004 17,575.76 17,533.32
5/31/2004 17,377.62 17,183.53
6/30/2004 17,692.31 17,256.72
7/31/2004 17,680.65 16,940.82
8/31/2004 18,170.16 17,643.35
9/30/2004 19,195.80 18,661.28
10/31/2004 19,731.93 19,107.15
11/30/2004 21,456.88 20,875.96
2005 12/31/2004 22,855.48 21,878.59
1/31/2005 23,041.96 21,934.15
2/28/2005 24,755.24 23,847.87
3/31/2005 23,065.27 22,271.83
4/30/2005 22,517.48 21,673.95
5/31/2005 23,193.47 22,428.37
6/30/2005 23,892.77 23,190.38
7/31/2005 25,431.24 24,811.33
8/31/2005 25,594.41 25,023.81
9/30/2005 27,634.03 27,353.90
10/31/2005 26,258.74 25,566.00
11/30/2005 28,158.51 27,680.93
2006 12/31/2005 29,790.21 29,317.06
1/31/2006 32,645.69 32,591.52
2/28/2006 32,552.45 32,552.84
3/31/2006 32,995.34 32,839.73
4/30/2006 34,976.69 35,178.14
5/31/2006 30,944.06 31,492.44
6/30/2006 30,909.09 31,415.46
7/31/2006 31,480.19 31,865.25
8/31/2006 32,470.86 32,677.19
9/30/2006 32,925.41 32,949.27
10/31/2006 34,895.10 34,513.80
11/30/2006 37,132.87 37,079.37
2007 12/31/2006 38,636.36 38,748.91
1/31/2007 39,207.46 38,331.68
2/28/2007 38,613.05 38,104.17
3/31/2007 40,372.96 39,621.55
4/30/2007 42,960.37 41,455.91
5/31/2007 45,839.16 43,509.21
6/30/2007 46,596.74 45,548.75
7/31/2007 47,727.27 47,952.05
8/31/2007 46,911.42 46,932.97
9/30/2007 51,048.95 52,115.94
10/31/2007 56,655.01 57,927.95
11/30/2007 52,960.37 53,821.63
2008 12/31/2007 52,773.89 54,010.37
1/31/2008 48,181.82 47,270.20
2/29/2008 49,720.28 50,759.33
3/31/2008 48,181.82 48,073.18
4/30/2008 51,631.70 51,974.50
5/31/2008 51,934.73 52,938.69
6/30/2008 46,608.39 47,658.72
7/31/2008 46,002.33 45,861.03
8/31/2008 43,275.06 42,197.96
9/30/2008 37,261.07 34,813.18
10/31/2008 27,447.55 25,285.56
11/30/2008 24,965.04 23,382.14
2009 12/31/2008 26,923.08 25,205.85
1/31/2009 24,860.14 23,578.05
2/28/2009 23,251.75 22,247.96
3/31/2009 26,608.39 25,445.15
4/30/2009 30,559.44 29,679.48
5/31/2009 35,769.23 34,750.69
6/30/2009 35,466.20 34,282.58
7/31/2009 39,533.80 38,137.59
8/31/2009 39,673.66 38,001.05
9/30/2009 43,181.82 41,450.42
10/31/2009 42,272.73 41,501.69
11/30/2009 44,813.52 43,284.42
2010 12/31/2009 46,433.57 44,993.77
1/31/2010 43,904.43 42,484.38
2/28/2010 44,440.56 42,633.91
3/31/2010 48,170.16 46,075.86
4/30/2010 48,461.54 46,634.07
5/31/2010 43,962.70 42,532.30
6/30/2010 44,032.63 42,219.64
7/31/2010 47,913.75 45,735.49
8/31/2010 46,806.53 44,847.26
9/30/2010 52,132.87 49,831.12
10/31/2010 53,717.95 51,278.04
11/30/2010 52,517.48 49,924.41
2011 12/31/2010 56,794.87 53,486.99
1/31/2011 55,326.34 52,035.83
2/28/2011 54,941.72 51,550.58
3/31/2011 58,006.99 54,581.43
4/30/2011 60,034.97 56,274.56
5/31/2011 58,379.95 54,798.52
6/30/2011 57,692.31 53,955.51
7/31/2011 57,249.42 53,715.88
8/31/2011 52,622.38 48,915.60
9/30/2011 44,662.00 41,783.97
10/11 10/31/2011 50,256.41 47,318.56
AVERAGE ANNUAL ONE FIVE TEN
TOTAL RETURN YEAR YEARS YEARS
-------------- ----- ----- -----
-6.44% 7.57% 17.52%
Past performance is not predictive of future performance.
Reimbursement fees applicable to purchases of sales prior to April 2002 are not
reflected in the graph and table.
The returns shown do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
MSCI data copyright MSCI 2011, all rights reserved.
21
THE DFA INVESTMENT TRUST COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
INTERNATIONAL EQUITY MARKET REVIEW 12 MONTHS ENDED OCTOBER 31, 2011
The one-year period ending October 31, 2011, was characterized by levels of
volatility in non-US developed markets not seen since 2008-09.
While broad market returns were positive through April 2011, stocks dropped
for five out of the next six months to end the period in negative territory,
with stocks represented by the MSCI World ex USA Index (net dividends)
returning -3.70% overall. The slide in August and September, accompanied by
poor US economic data and Euro-pean debt worries among other factors, produced
some of the lowest monthly returns since 2008. October's rally produced some of
the best monthly returns since early 2009. As measured by the MSCI indices
below, growth stocks outperformed their value counterparts, while small cap
stocks outperformed large caps.
12 MONTHS ENDED OCTOBER 31, 2011
U.S. DOLLAR
RETURN
-----------
MSCI World ex USA Index........... -3.70%
MSCI World ex USA Small Cap Index. -2.01%
MSCI World ex USA Value Index..... -4.74%
MSCI World ex USA Growth Index.... -2.73%
--------
The US dollar (USD) generally depreciated against other major developed markets
curencies during the period. While the USD's value remained relatively constant
against the euro and British pound, it fell significantly against the Swiss
franc and Australian dollar, and to a lesser extent, against the Japanese yen.
12 MONTHS ENDED OCTOBER 31, 2011
LOCAL
CURRENCY U.S. DOLLAR
TEN LARGEST FOREIGN DEVELOPED MARKETS BY MARKET CAP RETURN RETURN
--------------------------------------------------- -------- -----------
United Kingdom......................................... 1.14% 2.10%
Japan.................................................. -5.45% -2.33%
Canada................................................. -2.57% -0.18%
France................................................. -11.83% -11.52%
Australia.............................................. -4.39% 3.49%
Switzerland............................................ -9.66% 2.03%
Germany................................................ -7.39% -7.07%
Spain.................................................. -15.21% -14.91%
Sweden................................................. -7.75% -4.35%
Hong Kong.............................................. -8.67% -8.82%
--------
Source: Returns are of MSCI standard indices net of foreign withholding taxes
on dividends. Copyright MSCI 2011, all rights reserved.
22
Losses in emerging markets were higher on average than in developed markets,
although results varied widely among the individual emerging markets countries.
For the one-year period ended October 31, 2011, returns in USD were -7.72% for
the MSCI Emerging Markets Index (net dividends) versus -3.70% for the MSCI
World ex USA Index (net dividends). As measured by the MSCI indices, emerging
markets growth stocks underperformed their value counterparts, while emerging
markets small cap stocks underperformed large caps.
12 MONTHS ENDED OCTOBER 31, 2011
U.S. DOLLAR
RETURN
-----------
MSCI Emerging Markets Index........... -7.72%
MSCI Emerging Markets Small Cap Index. -16.70%
MSCI Emerging Markets Value Index..... -6.99%
MSCI Emerging Markets Growth Index.... -8.45%
--------
The US dollar (USD) generally appreciated against most major emerging
markets currencies during the period.
12 MONTHS ENDED OCTOBER 31, 2011
LOCAL
CURRENCY U.S. DOLLAR
TEN LARGEST EMERGING MARKETS BY MARKET CAP RETURN RETURN
------------------------------------------ -------- -----------
China...................................... -15.62% -15.76%
Brazil..................................... -12.71% -12.57%
South Korea................................ 4.63% 6.24%
Taiwan..................................... -5.30% -3.07%
South Africa............................... 10.15% -2.95%
India...................................... -12.30% -19.99%
Russia..................................... -1.24% 0.22%
Mexico..................................... 5.26% -1.38%
Malaysia................................... 2.08% 3.53%
Indonesia.................................. 3.92% 4.92%
--------
Source: Returns are of MSCI standard indices net of foreign withholding taxes
on dividends. Copyright MSCI 2011, all rights reserved.
INTERNATIONAL EQUITY SERIES' PERFORMANCE OVERVIEW
THE DFA INTERNATIONAL VALUE SERIES
The DFA International Value Series seeks to capture the returns of
international large company value stocks. The investment strategy is process
driven, emphasizing broad diversification and consistent exposure to large cap
value stocks, and does not attempt to track any specific equity index. As of
October 31, 2011, the Series held approximately 530 securities in 23 developed
countries. In general, the portfolio was mostly invested in equities throughout
the year. The average cash level for the period was less than 1% of the Series'
assets.
For the 12 months ending October 31, 2011, total returns were -8.04% for the
Series and -3.70% for the MSCI World ex USA Index (net dividends). The MSCI
Standard benchmarks indicate that on the whole, growth stocks outperformed
value stocks in international developed markets during the period. In
particular, there was an extremely wide performance difference between deep
value stocks and extreme growth stocks. The Series' larger allocation to deep
value stocks, which underperformed, and significantly lower allocation to
extreme growth stocks, which outperformed, was the primary contributor to its
relative underperformance as compared to the Index. An additional component of
the Series' relative performance was due to differences in valuation timing and
methodology between the Series and the Index. The Series prices foreign
exchange rates at the closing of U.S. markets, while
23
the Index uses rates at 4 pm London time. The Series utilizes fair value
pricing to price portfolio securities at the closing of the U.S. markets, while
the Index uses local market closing prices.
THE EMERGING MARKETS SERIES
The Emerging Markets Series seeks to capture the returns of large cap stocks
in selected emerging markets countries. The investment strategy is process
driven, emphasizing broad diversification and consistent exposure to large cap
emerging markets stocks, and does not attempt to track a specific equity index.
As of October 31, 2011, the Master Fund held approximately 850 securities
across 20 emerging markets. In general, the Portfolio was mostly invested in
equities throughout the year. The average cash level for the period was less
than 1% of the Portfolio's assets. The Master Fund's country weights were
capped at 15% of assets associated with any one country at the time of purchase
by the manager to limit single-country risk exposure.
For the 12 months ended October 31, 2011, total returns were -6.44% for the
Series and -7.72% for the MSCI Emerging Markets Index (net dividends). As a
result of the Series' diversified approach, performance was generally
determined by structural trends in emerging markets rather than the behavior of
a limited number of stocks. The Series' relative outperformance was primarily
due to differences in country weight allocations and in the composition of the
Series' holdings relative to the Index. In particular, the Series' lower weight
in China, which underperformed, contributed significantly to the Series'
relative outperformance. The time of valuation of currency and fair valuation
adjustments can create differences between the performance of the Series and
the Index.
24
THE DFA INVESTMENT TRUST COMPANY
DISCLOSURE OF FUND EXPENSES
(UNAUDITED)
The following Expense Tables are shown so that you can understand the impact
of fees on your investment. All mutual funds have operating expenses. As a
shareholder of the fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports, among
others. Operating expenses, legal and audit services, which are deducted from a
fund's gross income, directly reduce the investment return of the fund. A
fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs, in dollars, of investing in the fund and
to compare these costs with those of other mutual funds. The examples are based
on an investment of $1,000 made at the beginning of the period shown and held
for the entire period.
The Expense Tables below illustrate your fund's costs in two ways.
ACTUAL FUND RETURN
This section helps you to estimate the actual expenses after fee waivers
that you paid over the period. The "Ending Account Value" shown is
derived from the fund's actual return and "Expenses Paid During Period"
reflect the dollar amount that would have been paid by an investor who
started with $1,000 in the fund. You may use the information here,
together with the amount you invested, to estimate the expenses that you
paid over the period.
To do so, simply divide your account value by $1,000 (for example, a
$7,500 account value divided by $1,000 = 7.5), then multiply the result
by the number given for your fund under the heading "Expenses Paid
During Period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
This section is intended to help you compare your fund's costs with
those of other mutual funds. The hypothetical "Ending Account Value" and
"Expenses Paid During Period" are derived from the fund's actual expense
ratio and an assumed 5% annual return before expenses. In this case,
because the return used is not the fund's actual return, the results do
not apply to your investment. The example is useful in making
comparisons because the SEC requires all mutual funds to calculate
expenses based on a 5% annual return. You can assess your fund's costs
by comparing this hypothetical example with the hypothetical examples
that appear in shareholder reports of other funds.
Please note that the expenses shown in the tables are meant to highlight and
help you compare ongoing costs only and do not reflect any transactional costs,
if applicable. The "Annualized Expense Ratio" represents the actual expenses
for the six-month period indicated.
SIX MONTHS ENDED OCTOBER 31, 2011
EXPENSE TABLES
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
05/01/11 10/31/11 RATIO* PERIOD*
--------- --------- ---------- --------
THE DFA INTERNATIONAL VALUE SERIES
Actual Fund Return..................... $1,000.00 $ 802.34 0.23% $1.04
Hypothetical 5% Annual Return.......... $1,000.00 $1,024.05 0.23% $1.17
THE EMERGING MARKETS SERIES
Actual Fund Return..................... $1,000.00 $ 837.13 0.22% $1.02
Hypothetical 5% Annual Return.......... $1,000.00 $1,024.10 0.22% $1.12
--------
* Expenses are equal to the fund's annualized expense ratio for the six-month
period, multiplied by the average account value over the period, multiplied
by the number of days in the most recent six-month period (184), then divided
by the number of days in the year (365) to reflect the six-month period.
25
THE DFA INVESTMENT TRUST COMPANY
DISCLOSURE OF PORTFOLIO HOLDINGS
(UNAUDITED)
The SEC requires that all Funds file a complete Schedule of Investments with
the SEC for their first and third fiscal quarters on Form N-Q. For The DFA
Investment Trust Company, this would be for the fiscal quarters ending
January 31 and July 31.The Form N-Q filing must be made within 60 days of the
end of the quarter. The DFA Investment Trust Company filed its most recent Form
N-Q with the SEC on September 28, 2011. It is available upon request, without
charge, by calling collect: (512) 306-7400 or by mailing a request to
Dimensional Fund Advisors LP, 6300 Bee Cave Road, Building One, Austin, Texas
78746, or by visiting the SEC's website at http://www.sec.gov, or they may be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
(call 1-800-732-0330 for information on the operation of the Public Reference
Room).
SEC regulations permit a fund to include in its reports to shareholders a
"Summary Schedule of Portfolio Holdings" in lieu of a full Schedule of
Investments. The Summary Schedule of Portfolio Holdings reports the fund's 50
largest holdings in unaffiliated issuers and any investments that exceed one
percent of the fund's net assets at the end of the reporting period. The
amendments also require that the Summary Schedule of Portfolio Holdings
identify each category of investments that are held.
The fund is required to file a complete Schedule of Investments with the SEC
on Form N-CSR within ten days after mailing the annual and semi-annual reports
to shareholders. It will be available upon request, without charge, by calling
collect: (512) 306-7400 or by mailing a request to Dimensional Fund Advisors
LP, 6300 Bee Cave Road, Building One, Austin, Texas 78746, or by visiting the
SEC's website at http://www.sec.gov, or they may be reviewed and copied at the
SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for
information on the operation of the Public Reference Room).
PORTFOLIO HOLDINGS
The SEC requires that all Funds present their categories of portfolio
holdings in a table, chart or graph format in their annual and semi-annual
shareholder reports, whether or not a Schedule of Investments is utilized. The
following table, which presents portfolio holdings as a percent of total
investments before short-term investments and collateral for loaned securities,
is provided in compliance with such requirement. The categories shown below
represent broad industry sectors. Each industry sector consists of one or more
specific industry classifications.
INTERNATIONAL EQUITY PORTFOLIOS
THE DFA INTERNATIONAL VALUE SERIES
Consumer Discretionary..... 13.2%
Consumer Staples........... 5.8%
Energy..................... 13.8%
Financials................. 27.8%
Health Care................ 1.8%
Industrials................ 9.9%
Information Technology..... 2.6%
Materials.................. 12.3%
Other...................... --
Telecommunication Services. 9.1%
Utilities.................. 3.7%
-----
100.0%
THE EMERGING MARKET SERIES
Consumer Discretionary..... 8.4%
Consumer Staples........... 9.2%
Energy..................... 14.1%
Financials................. 21.6%
Health Care................ 1.0%
Industrials................ 6.8%
Information Technology..... 13.1%
Materials.................. 13.7%
Other...................... --
Telecommunication Services. 8.7%
Utilities.................. 3.4%
-----
100.0%
26
THE DFA INTERNATIONAL VALUE SERIES
SUMMARY SCHEDULE OF PORTFOLIO HOLDINGS
OCTOBER 31, 2011
PERCENTAGE
SHARES VALUE++ OF NET ASSETS**
--------- ------------ ---------------
COMMON STOCKS -- (90.3%)
AUSTRALIA -- (5.1%)
National Australia Bank, Ltd......... 1,758,678 $ 46,973,112 0.7%
Wesfarmers, Ltd...................... 2,539,298 86,154,389 1.2%
Other Securities..................... 254,775,155 3.7%
------------ ----
TOTAL AUSTRALIA......................... 387,902,656 5.6%
------------ ----
AUSTRIA -- (0.3%)
Other Securities..................... 20,634,227 0.3%
------------ ----
BELGIUM -- (0.8%)
Other Securities..................... 59,337,610 0.9%
------------ ----
CANADA -- (12.2%)
#Encana Corp.......................... 2,051,015 44,487,529 0.6%
Goldcorp, Inc........................ 952,168 46,330,723 0.7%
Kinross Gold Corp.................... 2,678,826 38,190,236 0.5%
#Manulife Financial Corp.............. 4,206,497 55,537,999 0.8%
#Sun Life Financial, Inc.............. 1,513,735 38,209,754 0.5%
Suncor Energy, Inc................... 3,046,286 97,034,944 1.4%
#Teck Resources, Ltd. Class B......... 1,483,730 59,483,171 0.9%
#Thomson Reuters Corp................. 1,832,184 54,207,280 0.8%
#TransCanada Corp..................... 1,901,357 80,823,171 1.2%
Other Securities..................... 418,371,148 6.0%
------------ ----
TOTAL CANADA............................ 932,675,955 13.4%
------------ ----
DENMARK -- (1.0%)
Other Securities..................... 78,190,915 1.1%
------------ ----
FINLAND -- (0.5%)
Other Securities..................... 38,755,297 0.6%
------------ ----
FRANCE -- (8.1%)
AXA SA............................... 4,058,877 65,282,762 0.9%
Cie de Saint-Gobain SA............... 1,039,077 48,023,542 0.7%
GDF Suez SA.......................... 2,974,295 83,793,967 1.2%
Societe Generale SA.................. 1,383,654 39,616,437 0.6%
Vivendi SA........................... 3,567,218 79,714,572 1.2%
Other Securities..................... 301,029,827 4.3%
------------ ----
TOTAL FRANCE............................ 617,461,107 8.9%
------------ ----
GERMANY -- (7.6%)
Allianz SE........................... 409,076 45,514,671 0.7%
Bayerische Motoren Werke AG.......... 915,762 74,391,132 1.1%
Daimler AG........................... 2,088,586 106,077,407 1.5%
Deutsche Bank AG..................... 1,039,440 42,979,349 0.6%
Deutsche Telekom AG.................. 2,852,483 36,238,329 0.5%
#Deutsche Telekom AG Sponsored ADR.... 3,099,741 39,366,711 0.6%
E.ON AG.............................. 2,426,569 58,516,673 0.8%
Munchener
Rueckversicherungs-Gesellschaft AG. 400,624 53,651,325 0.8%
Other Securities..................... 124,509,792 1.8%
------------ ----
TOTAL GERMANY........................... 581,245,389 8.4%
------------ ----
GREECE -- (0.1%)
Other Securities..................... 4,894,561 0.1%
------------ ----
HONG KONG -- (1.4%)
Hutchison Whampoa, Ltd............... 5,618,000 51,349,161 0.7%
27
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
PERCENTAGE
SHARES VALUE++ OF NET ASSETS**
---------- -------------- ---------------
HONG KONG -- (Continued)
Other Securities................. $ 55,518,530 0.8%
-------------- ----
TOTAL HONG KONG..................... 106,867,691 1.5%
-------------- ----
IRELAND -- (0.2%)
Other Securities................. 15,199,876 0.2%
-------------- ----
ISRAEL -- (0.5%)
Other Securities................. 38,329,881 0.5%
-------------- ----
ITALY -- (1.2%)
Other Securities................. 89,164,763 1.3%
-------------- ----
JAPAN -- (19.3%)
Mitsubishi Heavy Industries, Ltd. 9,007,000 36,699,293 0.5%
#Mitsubishi UFJ Financial Group,
Inc............................. 15,413,706 66,987,001 1.0%
Nissan Motor Co., Ltd............ 4,503,100 41,404,872 0.6%
#Sony Corp. Sponsored ADR......... 1,801,665 37,780,915 0.5%
Sumitomo Corp.................... 3,241,900 40,138,454 0.6%
#Toyota Motor Corp. Sponsored ADR. 673,198 44,909,039 0.7%
Other Securities................. 1,205,111,310 17.3%
-------------- ----
TOTAL JAPAN......................... 1,473,030,884 21.2%
-------------- ----
MALAYSIA -- (0.0%)
Other Securities................. -- 0.0%
-------------- ----
NETHERLANDS -- (2.8%)
#ArcelorMittal NV................. 2,446,831 50,730,198 0.7%
*ING Groep NV..................... 4,345,626 37,463,546 0.5%
Koninklijke Philips Electronics
NV............................. 1,939,039 40,364,410 0.6%
Other Securities................. 87,853,051 1.3%
-------------- ----
TOTAL NETHERLANDS................... 216,411,205 3.1%
-------------- ----
NEW ZEALAND -- (0.1%)
Other Securities................. 6,099,517 0.1%
-------------- ----
NORWAY -- (1.0%)
Other Securities................. 72,663,534 1.0%
-------------- ----
PORTUGAL -- (0.1%)
Other Securities................. 5,744,115 0.1%
-------------- ----
SINGAPORE -- (1.0%)
Other Securities................. 78,508,852 1.1%
-------------- ----
SPAIN -- (2.8%)
Banco Santander SA............... 4,170,537 35,298,849 0.5%
Repsol YPF SA Sponsored ADR...... 1,432,181 43,208,901 0.6%
Other Securities................. 131,339,944 1.9%
-------------- ----
TOTAL SPAIN......................... 209,847,694 3.0%
-------------- ----
SWEDEN -- (2.2%)
Nordea Bank AB................... 4,070,233 36,961,282 0.5%
Other Securities................. 133,018,079 1.9%
-------------- ----
TOTAL SWEDEN........................ 169,979,361 2.4%
-------------- ----
SWITZERLAND -- (4.9%)
Holcim, Ltd...................... 886,165 56,117,367 0.8%
*Swiss Re, Ltd.................... 1,108,107 60,500,983 0.9%
*UBS AG........................... 3,071,652 38,820,179 0.5%
Zurich Financial Services AG..... 322,634 74,348,937 1.1%
28
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
PERCENTAGE
SHARES VALUE++ OF NET ASSETS**
------------ -------------- ---------------
SWITZERLAND -- (Continued)
Other Securities................ $ 140,256,396 2.0%
-------------- -----
TOTAL SWITZERLAND.................. 370,043,862 5.3%
-------------- -----
UNITED KINGDOM -- (17.1%)
Aviva P.L.C..................... 7,470,381 40,755,092 0.6%
#Barclays P.L.C. Sponsored ADR... 4,308,754 53,902,513 0.8%
BP P.L.C. Sponsored ADR......... 2,525,358 111,570,316 1.6%
Kingfisher P.L.C................ 10,285,817 42,615,041 0.6%
Royal Dutch Shell P.L.C. ADR.... 3,323,210 238,606,478 3.4%
Vodafone Group P.L.C............ 34,976,333 97,118,175 1.4%
Vodafone Group P.L.C. Sponsored
ADR........................... 8,700,738 242,228,546 3.5%
William Morrison Supermarkets
P.L.C......................... 8,127,143 39,411,911 0.6%
Xstrata P.L.C................... 4,186,332 69,729,764 1.0%
Other Securities................ 370,447,348 5.3%
-------------- -----
TOTAL UNITED KINGDOM............... 1,306,385,184 18.8%
-------------- -----
TOTAL COMMON STOCKS................ 6,879,374,136 98.9%
-------------- -----
PREFERRED STOCKS -- (0.3%)
GERMANY -- (0.3%)
Other Securities................ 19,462,153 0.3%
-------------- -----
RIGHTS/WARRANTS -- (0.0%)
HONG KONG -- (0.0%)
Other Securities................ 1,391,631 0.0%
-------------- -----
SHARES/
FACE
AMOUNT VALUE+
------------ --------------
(000)
SECURITIES LENDING COLLATERAL --
(9.4%)
(S)@DFA Short Term Investment Fund. 715,664,286 715,664,286 10.3%
@Repurchase Agreement, Deutsche
Bank Securities, Inc. 0.11%,
11/01/11 (Collateralized by
FNMA 3.500%, 11/01/31, valued
at $2,921,919) to be
repurchased at $2,864,635..... $ 2,865 2,864,626 0.0%
-------------- -----
TOTAL SECURITIES LENDING
COLLATERAL....................... 718,528,912 10.3%
-------------- -----
TOTAL INVESTMENTS -- (100.0%)
(Cost $7,061,653,062)............ $7,618,756,832 109.5%
============== =====
29
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
Summary of inputs used to value the Series' investments as of October 31, 2011
is as follows (See Security Valuation Note):
VALUATION INPUTS
----------------------------------------------------
INVESTMENT IN SECURITIES (MARKET VALUE)
----------------------------------------------------
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------- -------------- ------- --------------
Common Stocks
Australia............. $ 6,629,134 $ 381,273,522 -- $ 387,902,656
Austria............... -- 20,634,227 -- 20,634,227
Belgium............... 3,455,957 55,881,653 -- 59,337,610
Canada................ 932,675,955 -- -- 932,675,955
Denmark............... -- 78,190,915 -- 78,190,915
Finland............... 1,388,619 37,366,678 -- 38,755,297
France................ 28,654,193 588,806,914 -- 617,461,107
Germany............... 88,531,841 492,713,548 -- 581,245,389
Greece................ 335,251 4,559,310 -- 4,894,561
Hong Kong............. -- 106,867,691 -- 106,867,691
Ireland............... 4,784,538 10,415,338 -- 15,199,876
Israel................ 5,756,752 32,573,129 -- 38,329,881
Italy................. 23,300,035 65,864,728 -- 89,164,763
Japan................. 117,374,320 1,355,656,564 -- 1,473,030,884
Malaysia.............. -- -- -- --
Netherlands........... 13,867,890 202,543,315 -- 216,411,205
New Zealand........... -- 6,099,517 -- 6,099,517
Norway................ 311,480 72,352,054 -- 72,663,534
Portugal.............. -- 5,744,115 -- 5,744,115
Singapore............. -- 78,508,852 -- 78,508,852
Spain................. 55,061,813 154,785,881 -- 209,847,694
Sweden................ 9,912,006 160,067,355 -- 169,979,361
Switzerland........... 52,276,796 317,767,066 -- 370,043,862
United Kingdom........ 701,196,382 605,188,802 -- 1,306,385,184
Preferred Stocks
Germany............... -- 19,462,153 -- 19,462,153
Rights/Warrants
Hong Kong............. -- 1,391,631 -- 1,391,631
Securities Lending
Collateral............. -- 718,528,912 -- 718,528,912
-------------- -------------- -- --------------
TOTAL.................... $2,045,512,962 $5,573,243,870 -- $7,618,756,832
============== ============== == ==============
See accompanying Notes to Financial Statements.
30
THE EMERGING MARKETS SERIES
SUMMARY SCHEDULE OF PORTFOLIO HOLDINGS
OCTOBER 31, 2011
PERCENTAGE
SHARES VALUE++ OF NET ASSETS**
---------- ------------ ---------------
COMMON STOCKS -- (84.3%)
BRAZIL -- (5.1%)
#BRF - Brasil Foods SA ADR........... 590,060 $ 12,420,763 0.5%
Petroleo Brasilerio SA ADR.......... 825,839 22,305,911 0.9%
#Vale SA Sponsored ADR............... 517,614 13,152,572 0.6%
Other Securities.................... 85,465,200 3.5%
------------ ----
TOTAL BRAZIL........................... 133,344,446 5.5%
------------ ----
CHILE -- (1.9%)
Other Securities.................... 51,064,584 2.1%
------------ ----
CHINA -- (12.4%)
Bank of China, Ltd. Series H........ 48,700,100 17,332,800 0.7%
China Construction Bank Corp.
Series H.......................... 28,362,590 20,838,995 0.9%
#China Life Insurance Co., Ltd. ADR.. 305,704 11,846,030 0.5%
China Mobile, Ltd. Sponsored ADR.... 729,872 34,712,712 1.4%
#China Petroleum & Chemical Corp.
ADR................................. 106,449 10,048,786 0.4%
#CNOOC, Ltd. ADR..................... 100,270 18,911,925 0.8%
Industrial & Commercial Bank of
China, Ltd. Series H.............. 36,966,185 23,037,295 0.9%
#PetroChina Co., Ltd. ADR............ 141,210 18,302,228 0.7%
Tencent Holdings, Ltd............... 700,600 16,123,538 0.7%
Other Securities.................... 154,657,110 6.3%
------------ ----
TOTAL CHINA............................ 325,811,419 13.3%
------------ ----
COLOMBIA -- (0.4%)
Other Securities.................... 9,639,683 0.4%
------------ ----
CZECH REPUBLIC -- (0.5%)
Other Securities.................... 13,611,179 0.6%
------------ ----
EGYPT -- (0.1%)
Other Securities.................... 3,004,529 0.1%
------------ ----
HUNGARY -- (0.4%)
Other Securities.................... 10,049,799 0.4%
------------ ----
INDIA -- (8.6%)
HDFC Bank, Ltd...................... 1,530,370 15,228,014 0.6%
ICICI Bank, Ltd. Sponsored ADR...... 306,356 11,384,189 0.5%
Infosys, Ltd........................ 250,829 14,661,612 0.6%
#Infosys, Ltd. Sponsored ADR......... 188,659 11,053,531 0.4%
Reliance Industries, Ltd............ 1,475,013 26,413,453 1.1%
Tata Consultancy Services, Ltd...... 481,215 10,927,517 0.4%
Other Securities.................... 136,085,923 5.6%
------------ ----
TOTAL INDIA............................ 225,754,239 9.2%
------------ ----
INDONESIA -- (2.8%)
PT Astra International Tbk.......... 2,078,561 16,027,331 0.7%
Other Securities.................... 59,037,568 2.4%
------------ ----
TOTAL INDONESIA........................ 75,064,899 3.1%
------------ ----
ISRAEL -- (0.0%)
Other Securities.................... 19 0.0%
------------ ----
MALAYSIA -- (3.7%)
Other Securities.................... 96,938,566 4.0%
------------ ----
MEXICO -- (5.7%)
#America Movil S.A.B. de C.V.
Series L............................ 33,690,314 42,823,885 1.8%
#Fomento Economico Mexicano S.A.B.
de C.V.............................. 2,109,900 14,153,602 0.6%
31
THE EMERGING MARKETS SERIES
CONTINUED
PERCENTAGE
SHARES VALUE++ OF NET ASSETS**
---------- -------------- ---------------
MEXICO -- (Continued)
Grupo Mexico S.A.B. de C.V.
Series B........................ 3,928,317 $ 10,897,417 0.4%
#Wal-Mart de Mexico S.A.B. de
C.V. Series V..................... 6,300,780 16,263,738 0.7%
Other Securities.................. 66,144,096 2.7%
-------------- ----
TOTAL MEXICO......................... 150,282,738 6.2%
-------------- ----
PERU -- (0.5%)
Other Securities.................. 11,960,082 0.5%
-------------- ----
PHILIPPINES -- (0.8%)
Other Securities.................. 20,249,894 0.8%
-------------- ----
POLAND -- (1.2%)
Other Securities.................. 31,373,697 1.3%
-------------- ----
RUSSIA -- (4.6%)
Gazprom OAO Sponsored ADR......... 4,226,507 48,995,198 2.0%
Lukoil OAO Sponsored ADR.......... 354,178 20,514,406 0.8%
MMC Norilsk Nickel JSC ADR........ 597,703 11,655,726 0.5%
Rosneft Oil Co. GDR............... 1,491,147 10,565,684 0.4%
Other Securities.................. 30,529,004 1.3%
-------------- ----
TOTAL RUSSIA......................... 122,260,018 5.0%
-------------- ----
SOUTH AFRICA -- (7.8%)
Impala Platinum Holdings, Ltd..... 478,692 10,949,323 0.5%
MTN Group, Ltd.................... 1,659,950 29,077,128 1.2%
Naspers, Ltd. Series N............ 324,237 15,671,748 0.6%
Sasol, Ltd. Sponsored ADR......... 691,887 31,300,968 1.3%
Standard Bank Group, Ltd.......... 863,345 10,685,595 0.4%
Other Securities.................. 107,096,309 4.4%
-------------- ----
TOTAL SOUTH AFRICA................... 204,781,071 8.4%
-------------- ----
SOUTH KOREA -- (13.8%)
Hyundai Heavy Industries Co., Ltd. 39,020 10,424,738 0.4%
Hyundai Mobis..................... 53,070 15,188,178 0.6%
#Hyundai Motor Co., Ltd............ 96,847 19,503,867 0.8%
Kia Motors Corp................... 225,130 14,433,507 0.6%
LG Chemical, Ltd.................. 32,392 10,452,445 0.4%
POSCO............................. 46,060 15,959,255 0.7%
Samsung Electronics Co., Ltd...... 69,482 59,814,359 2.4%
Samsung Electronics Co., Ltd. GDR. 49,372 21,160,746 0.9%
Other Securities.................. 197,575,151 8.1%
-------------- ----
TOTAL SOUTH KOREA.................... 364,512,246 14.9%
-------------- ----
TAIWAN -- (10.5%)
Formosa Plastics Corp............. 4,070,648 11,972,150 0.5%
Hon Hai Precision Industry Co.,
Ltd............................. 6,066,096 16,629,459 0.7%
#HTC Corp.......................... 581,235 13,062,416 0.5%
Nan Ya Plastic Corp............... 5,377,564 12,097,508 0.5%
Taiwan Semiconductor
Manufacturing Co., Ltd.......... 19,090,808 46,521,944 1.9%
Other Securities.................. 175,552,816 7.2%
-------------- ----
TOTAL TAIWAN......................... 275,836,293 11.3%
-------------- ----
THAILAND -- (2.0%)
Other Securities.................. 53,870,863 2.2%
-------------- ----
TURKEY -- (1.5%)
Other Securities.................. 40,343,682 1.7%
-------------- ----
TOTAL COMMON STOCKS.................. 2,219,753,946 91.0%
-------------- ----
32
THE EMERGING MARKETS SERIES
CONTINUED
PERCENTAGE
SHARES VALUE++ OF NET ASSETS**
------------ -------------- ---------------
PREFERRED STOCKS -- (8.0%)
BRAZIL -- (8.0%)
Banco Bradesco SA............... 1,656,632 $ 30,009,177 1.2%
Cia de Bebidas das Americas SA
ADR........................... 661,939 22,320,583 0.9%
Itau Unibanco Holding SA........ 1,765,755 33,909,161 1.4%
#Petroleo Brasilerio SA ADR...... 1,376,550 34,812,950 1.4%
Vale SA Series A................ 1,412,691 33,612,970 1.4%
Other Securities................ 55,872,895 2.3%
-------------- -----
TOTAL BRAZIL....................... 210,537,736 8.6%
-------------- -----
TOTAL PREFERRED STOCKS............. 210,537,736 8.6%
-------------- -----
RIGHTS/WARRANTS -- (0.0%)
SOUTH KOREA -- (0.0%)
Other Securities................ 44,763 0.0%
-------------- -----
SHARES/
FACE
AMOUNT VALUE+
------------ --------------
(000)
SECURITIES LENDING COLLATERAL --
(7.7%)
(S)@DFA Short Term Investment Fund. 198,287,107 198,287,107 8.1%
@Repurchase Agreement, Deutsche
Bank Securities, Inc. 0.11%,
11/01/11 (Collateralized by
FNMA 3.500%, 11/01/31, valued
at $3,330,993) to be
repurchased at $3,265,689..... $ 3,266 3,265,679 0.2%
-------------- -----
TOTAL SECURITIES LENDING
COLLATERAL....................... 201,552,786 8.3%
-------------- -----
TOTAL INVESTMENTS -- (100.0%)
(Cost $1,590,413,944)........... $2,631,889,231 107.9%
============== =====
33
THE EMERGING MARKETS SERIES
CONTINUED
Summary of inputs used to value the Series' investments as of October 31, 2011
is as follows (See Security Valuation Note):
VALUATION INPUTS
--------------------------------------------------
INVESTMENT IN SECURITIES (MARKET VALUE)
--------------------------------------------------
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------ -------------- ------- --------------
Common Stocks
Brazil................... $133,344,446 -- -- $ 133,344,446
Chile.................... 51,064,584 -- -- 51,064,584
China.................... 111,877,546 $ 213,933,873 -- 325,811,419
Colombia................. 9,639,683 -- -- 9,639,683
Czech Republic........... -- 13,611,179 -- 13,611,179
Egypt.................... -- 3,004,529 -- 3,004,529
Hungary.................. -- 10,049,799 -- 10,049,799
India.................... 31,223,348 194,530,891 -- 225,754,239
Indonesia................ 18,078 75,046,821 -- 75,064,899
Israel................... -- 19 -- 19
Malaysia................. -- 96,938,566 -- 96,938,566
Mexico................... 150,275,025 7,713 -- 150,282,738
Peru..................... 11,960,082 -- -- 11,960,082
Philippines.............. -- 20,249,894 -- 20,249,894
Poland................... -- 31,373,697 -- 31,373,697
Russia................... 1,649,511 120,610,507 -- 122,260,018
South Africa............. 54,788,205 149,992,866 -- 204,781,071
South Korea.............. 12,119,450 352,392,796 -- 364,512,246
Taiwan................... 7,697,143 268,139,150 -- 275,836,293
Thailand................. 53,870,863 -- -- 53,870,863
Turkey................... 287,635 40,056,047 -- 40,343,682
Preferred Stocks............
Brazil................... 210,537,736 -- -- 210,537,736
Rights/Warrants.............
South Korea.............. -- 44,763 -- 44,763
Securities Lending
Collateral................ -- 201,552,786 -- 201,552,786
------------ -------------- -- --------------
TOTAL....................... $840,353,335 $1,791,535,896 -- $2,631,889,231
============ ============== == ==============
See accompanying Notes to Financial Statements.
34
THE DFA INVESTMENT TRUST COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2011
(AMOUNTS IN THOUSANDS)
THE DFA
INTERNATIONAL THE EMERGING
VALUE MARKETS
SERIES SERIES*
------------- ------------
ASSETS:
Investments at Value (including $659,265 and
$242,548 of securities on loan, respectively).... $6,900,228 $2,430,336
Collateral Received from Securities on Loan at
Value & Cost..................................... 2,865 3,266
Affiliated Collateral Received from Securities on
Loan at Value & Cost............................. 715,664 198,287
Foreign Currencies at Value........................ 5,055 4,293
Cash............................................... 7,998 1,802
Receivables:
Investment Securities Sold...................... 10,461 1,249
Dividends and Tax Reclaims...................... 22,583 2,602
Securities Lending Income....................... 392 257
Fund Shares Sold................................ 16,059 610
---------- ----------
Total Assets................................ 7,681,305 2,642,702
---------- ----------
LIABILITIES:
Payables:
Upon Return of Securities Loaned................ 718,529 201,553
Investment Securities Purchased................. -- 432
Fund Shares Redeemed............................ 5,329 152
Due to Advisor.................................. 1,124 190
Accrued Expenses and Other Liabilities............. 416 394
---------- ----------
Total Liabilities........................... 725,398 202,721
---------- ----------
NET ASSETS......................................... $6,955,907 $2,439,981
========== ==========
Investments at Cost................................ $6,343,124 $1,388,861
---------- ----------
Foreign Currencies at Cost......................... $ 5,106 $ 4,262
---------- ----------
--------
* See Note I in the Notes to Financial Statements for additional securities
lending collateral.
See accompanying Notes to Financial Statements.
35
THE DFA INVESTMENT TRUST COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2011
(AMOUNTS IN THOUSANDS)
THE DFA
INTERNATIONAL THE EMERGING
VALUE MARKETS
SERIES SERIES
------------- ------------
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld of
$20,604 and $7,771, respectively).............. $ 258,493 $ 65,327
Interest......................................... 30 11
Income from Securities Lending................... 12,747 2,791
----------- ---------
Total Investment Income................... 271,270 68,129
----------- ---------
EXPENSES
Investment Advisory Services Fees................ 14,647 2,535
Accounting & Transfer Agent Fees................. 708 262
Custodian Fees................................... 1,317 1,912
Shareholders' Reports............................ 41 14
Directors'/Trustees' Fees & Expenses............. 66 23
Professional Fees................................ 238 --
Audit Fees....................................... -- 328
Legal Fees....................................... -- 26
Other............................................ 87 41
----------- ---------
Total Expenses............................ 17,104 5,141
----------- ---------
Fees Paid Indirectly............................. (7) (1)
----------- ---------
Net Expenses..................................... 17,097 5,140
----------- ---------
NET INVESTMENT INCOME (LOSS)..................... 254,173 62,989
----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
Net Realized Gain (Loss) on:
Investment Securities Sold................... 161,341 103,456
Foreign Currency Transactions................ 506 (1,120)*
Change in Unrealized Appreciation
(Depreciation) of:
Investment Securities and Foreign
Currency................................... (1,021,735) (330,512)
Translation of Foreign Currency
Denominated Amounts........................ (517) (115)
Change in Deferred Thailand Capital Gains Tax.... -- 4,428
----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS).......... (860,405) (223,863)
----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................... $ (606,232) $(160,874)
=========== =========
--------
* Net of foreign capital gain taxes withheld of $212.
See accompanying Notes to Financial Statements.
36
THE DFA INVESTMENT TRUST COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
THE DFA INTERNATIONAL THE EMERGING
VALUE SERIES MARKETS SERIES
----------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31,
2011 2010 2011 2010
----------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income (Loss)................ $ 254,173 $ 164,482 $ 62,989 $ 48,891
Net Realized Gain (Loss) on:
Investment Securities Sold.............. 161,341 360,748 103,456 160,587
Foreign Currency Transactions........... 506 (156) (1,120)* 541
Change in Unrealized Appreciation
(Depreciation) of:
Investment Securities and
Foreign Currency...................... (1,021,735) 182,952 (330,512) 337,045
Translation of Foreign Currency
Denominated Amounts................... (517) 537 (115) (5)
Change in Deferred Thailand Capital
Gains Tax................................. -- -- 4,428 (2,275)
----------- ---------- ---------- ----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations......................... (606,232) 708,563 (160,874) 544,784
----------- ---------- ---------- ----------
Transactions in Interest:......................
Contributions............................... 900,473 611,794 341,207 199,169
Withdrawals................................. (257,967) (592,688) (269,845) (323,776)
----------- ---------- ---------- ----------
Net Increase (Decrease) from
Transactions in Interest........... 642,506 19,106 71,362 (124,607)
----------- ---------- ---------- ----------
Total Increase (Decrease) in
Net Assets......................... 36,274 727,669 (89,512) 420,177
NET ASSETS
Beginning of Period......................... 6,919,633 6,191,964 2,529,493 2,109,316
----------- ---------- ---------- ----------
End of Period............................... $ 6,955,907 $6,919,633 $2,439,981 $2,529,493
=========== ========== ========== ==========
--------
* Net of foreign capital gain taxes withheld of $212.
See accompanying Notes to Financial Statements.
37
THE DFA INVESTMENT TRUST COMPANY
FINANCIAL HIGHLIGHTS
THE DFA INTERNATIONAL VALUE SERIES+
---------------------------------------------------------------------------
PERIOD
YEAR YEAR YEAR DEC. 1, YEAR YEAR
ENDED ENDED ENDED 2007 TO ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31, NOV. 30, NOV. 30,
2011 2010 2009 2008 2007 2006
---------- ---------- ---------- ---------- ---------- ----------
Total Return................................. (8.04)% 11.13% 35.41% (47.87)%(C) 17.32% 35.73%
---------- ---------- ---------- ---------- ---------- ----------
Net Assets, End of Period (thousands)........ $6,955,907 $6,919,633 $6,191,964 $4,700,337 $9,638,721 $7,457,252
Ratio of Expenses to Average Net Assets...... 0.23% 0.24% 0.24% 0.23%(B) 0.23% 0.23%
Ratio of Expenses to Average Net Assets
(Excluding Waivers and Assumption of
Expenses and/or Recovery of Previously
Waived Fees and Fees Paid Indirectly)........ 0.23% 0.24% 0.24% 0.23%(B) 0.23% 0.23%
Ratio of Net Investment Income to Average
Net Assets................................. 3.47% 2.55% 3.22% 4.15%(B) 3.04% 3.29%
Portfolio Turnover Rate...................... 9% 20% 18% 16%(C) 16% 8%
THE EMERGING MARKETS SERIES
---------------------------------------------------------------------------
PERIOD
YEAR YEAR YEAR DEC. 1, YEAR YEAR
ENDED ENDED ENDED 2007 TO ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31, NOV. 30, NOV. 30,
2011 2010 2009 2008 2007 2006
---------- ---------- ---------- ---------- ---------- ----------
Total Return................................. (6.44)% 27.04% 53.99% (48.15)%(C) 42.62% 31.87%
---------- ---------- ---------- ---------- ---------- ----------
Net Assets, End of Period (thousands)........ $2,439,981 $2,529,493 $2,109,316 $1,624,524 $3,707,790 $2,414,971
Ratio of Expenses to Average Net Assets...... 0.20% 0.19% 0.20% 0.18%(B) 0.19% 0.20%
Ratio of Expenses to Average Net Assets
(Excluding Waivers and Assumption of
Expenses and/or Recovery of Previously
Waived Fees and Fees Paid Indirectly)........ 0.20% 0.19% 0.20% 0.18%(B) 0.19% 0.20%
Ratio of Net Investment Income to Average
Net Assets................................. 2.48% 2.18% 2.57% 3.00%(B) 2.52% 2.54%
Portfolio Turnover Rate...................... 16% 12% 14% 19%(C) 7% 11%
--------
See page 1 for the Definitions of Abbreviations and Footnotes.
+ See Note A in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
38
THE DFA INVESTMENT TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS
A. ORGANIZATION:
The DFA Investment Trust Company (the "Trust") is an open-end management
investment company registered under the Investment Company Act of 1940. The
Trust consists of eleven investment portfolios, of which two, The DFA
International Value Series and The Emerging Markets Series (the "Series") are
presented in this report.
On November 1, 2008, The DFA International Value Series, a master fund in a
RIC/RIC master-feeder structure, elected with the consent of its respective
Holder(s) to change its U.S. federal income tax classification from that of an
association taxable as a corporation to a partnership pursuant to Treasury
Regulation (S) 301.7701-3. The change in capital structure and retroactive
reclassification of the statement of changes in net assets and financial
highlights for the respective funds is a result of the treatment of a
partnership for book purposes. The Series/Portfolio will maintain its books and
records and present its financial statements in accordance with generally
accepted accounting principles for investment partnerships.
At a regular meeting of the Board of Directors/Trustees (the "Board") on
September 16, 2008, the Board voted to change the fiscal and tax year ends of
the Series from November 30 to October 31.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
accounting principles generally accepted in the United States of America. Such
policies are consistently followed by the Trust in preparation of its financial
statements. The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates and those differences
could be material.
1. Security Valuation: The Series utilizes a fair value hierarchy which
prioritizes the inputs to valuation techniques used to measure fair value into
three broad levels described below:
. Level 1 - quoted prices in active markets for identical securities
. Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds, credit risk,
etc.)
. Level 3 - significant unobservable inputs (including the Series' own
assumptions in determining the fair value of investments)
Securities held by the Series (including over-the-counter securities) are
valued at the last quoted sale price of the day. Securities held by the Series
that are listed on Nasdaq are valued at the Nasdaq Official Closing Price
("NOCP"). If there is no last reported sale price or NOCP for the day, the
Series value the securities at the mean of the most recent quoted bid and asked
prices. Price information on listed securities is taken from the exchange where
the security is primarily traded. Generally, securities issued by open-end
investment companies are valued using their respective net asset values or
public offering prices, as appropriate, for purchase orders placed at the close
of the New York Stock Exchange (NYSE). These securities are generally
categorized as Level 1 in the hierarchy.
Securities for which no market quotations are readily available (including
restricted securities), or for which market quotations have become unreliable,
are valued in good faith at fair value in accordance with procedures adopted by
the Board of Directors/Trustees. These securities are generally categorized as
Level 2 in the hierarchy. Fair value pricing may also be used if events that
have a significant effect on the value of an investment (as determined in the
discretion of the Investment Committee of the Advisor) occur before the net
asset value is calculated. When
39
fair value pricing is used, the prices of securities used by the Series may
differ from the quoted or published prices for the same securities on their
primary markets or exchanges.
The Series will also fair value price in the circumstances described below.
Generally, trading in foreign securities markets is completed each day at
various times prior to the close of the NYSE. For example, trading in the
Japanese securities markets is completed each day at the close of the Tokyo
Stock Exchange (normally 11:00 p.m. PT), which is fourteen hours prior to the
close of the NYSE (normally 1:00 p.m. PT) and the time that the net asset value
of the International Series is computed. Due to the time differences between
the closings of the relevant foreign securities exchanges and the time the
International Series prices its shares at the close of the NYSE, the
International Series will fair value its foreign investments when it is
determined that the market quotations for the foreign investments are either
unreliable or not readily available. The fair value prices will attempt to
reflect the impact of the U.S. financial markets' perceptions and trading
activities on the International Series' foreign investments since the last
closing prices of the foreign investments were calculated on their primary
foreign securities markets or exchanges. For these purposes, the Board of
Directors/Trustees of the International Series has determined that movements in
relevant indices or other appropriate market indicators, after the close of the
Tokyo Stock Exchange or the London Stock Exchange, demonstrate that market
quotations may be unreliable. Fair valuation of portfolio securities may occur
on a daily basis. The fair value pricing by the International Series utilizes
data furnished by an independent pricing service (and that data draws upon,
among other information, the market values of foreign investments). The fair
value prices of portfolio securities generally will be used when it is
determined that the use of such prices will have a material impact on the net
asset value of the International Series. When the International Series uses
fair value pricing, the values assigned to the International Series' foreign
investments may not be the quoted or published prices of the investments on
their primary markets or exchanges. These securities are generally categorized
as Level 2 in the hierarchy.
Listed derivatives, such as futures, that are actively traded are valued
based on quoted prices from the exchange and are categorized as Level 1 in the
hierarchy.
A summary of the inputs used to value the Series' investments by each major
security type, industry and/or country is disclosed at the end of the Summary
Schedule of Portfolio Holdings. The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with
investing in those securities.
The Portfolios did not have any significant transfers between Level 1 and
Level 2 during the year ended October 31, 2011.
2. Foreign Currency Translation: Securities and other assets and liabilities
of the Series whose values are initially expressed in foreign currencies, are
translated to U.S. dollars using the mean between the most recently quoted bid
and asked prices for the U.S. dollar as quoted by generally recognized reliable
sources. Dividend and interest income and certain expenses are translated to
U.S. dollars at the rate of exchange on their respective accrual dates.
Receivables and payables denominated in foreign currencies are marked to market
daily based on daily exchange rates, and exchange gains or losses are realized
upon ultimate receipt or disbursement.
The Series do not isolate the effect of fluctuations in foreign exchange
rates from the effect of fluctuations in the market prices of securities held
whether realized or unrealized.
Realized gains or losses on foreign currency transactions represent net
foreign exchange gains or losses from the disposition of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, and the difference between amounts of interest,
dividends and foreign withholding taxes recorded on the books of the Series and
the U.S. dollar equivalent amounts actually received or paid.
3. Deferred Compensation Plan: Each eligible Trustee of the Trust may elect
participation in The Fee Deferral Plan for Independent Directors and Trustees
(the "Plan"). Under the Plan, effective January 1, 2002, such Trustees may
defer payment of all or a portion of their total fees earned as a Trustee.
These deferred amounts may be treated as though such amounts had been invested
in shares of the following funds: U.S. Large Cap Value Portfolio; U.S. Core
Equity 1 Portfolio; U.S. Core Equity 2 Portfolio; U.S. Vector Equity Portfolio;
U.S. Micro Cap Portfolio; DFA International Value Portfolio; International Core
Equity Portfolio; Emerging Markets Portfolio; Emerging Markets
40
Core Equity Portfolio; and/or DFA Two-Year Global Fixed Income Portfolio.
Contributions made under the Plan and the change in unrealized appreciation
(depreciation) and income are included in Directors'/Trustees' Fees & Expenses.
Each Trustee has the option to receive their distribution of proceeds in one
of the following methods: lump sum; annual installments over a period of agreed
upon years; or quarterly installments over a period of agreed upon years. Each
Trustee shall have the right in a notice of election to defer compensation (the
"Notice") to elect to defer the receipt of the Trustee's deferred compensation
until a date specified by such Trustee in the Notice, which date may not be
sooner than the earlier of: (i) the first business day of January following the
year in which such Trustee ceases to be a member of the Board of the Fund; and
(ii) five years following the effective date of the Trustee's first deferral
election. If a Trustee who elects to defer fees fails to designate in the
Notice a time or date as of which payment of the Trustee's deferred fee account
shall commence, payment of such amount shall commence as of the first business
day of January following the year in which the Trustee ceases to become a
member of the Board of the Fund (unless the Trustee files an amended Notice
selecting a different distribution date). As of October 31, 2011, none of the
Trustees have requested or received a distribution of proceeds of a deferred
fee account.
4. Other: Security transactions are accounted for as of the trade date.
Costs used in determining realized gains and losses on the sale of investment
securities are on the basis of identified cost. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Distributions received on securities that represent a return of capital or
capital gain are recorded as a reduction of cost of investments or as a
realized gain, respectively. The Series estimate the character of distributions
received that may be considered return of capital distributions. Interest
income is recorded on the accrual basis. Discount and premium on securities
purchased are amortized over the lives of the respective securities utilizing
the effective interest method. Expenses directly attributable to a Series are
directly charged. Common expenses of the Trust or Series are allocated using
methods approved by the Board of Directors/Trustees, generally based on average
net assets.
The Series may be subject to taxes imposed by countries in which it invests,
with respect to its investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned or repatriated and
capital gains realized on the sale of such investments. The Series accrues such
taxes when the related income or capital gains are earned or throughout the
holding period. Some countries require governmental approval for the
repatriation of investment income, capital or the proceeds of sales of foreign
investors. In addition, if there is a deterioration in a country's balance of
payments or for other reasons, a country may impose temporary restrictions on
foreign capital remittances abroad.
The Emerging Markets Series is subject to a 15% governmental capital gains
tax on short-term capital gains for investments in India. Such taxes are due
upon sale of individual securities. The taxes for the capital gains are
recognized when the capital gains are earned.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors LP ("Dimensional" or the "Advisor") provides
investment advisory services to the Series. For the year ended October 31,
2011, the investment advisory services fees were accrued daily and paid monthly
to the Advisor based on an effective annual rate of 0.20% and 0.10% of average
daily net assets for The DFA International Value Series and The Emerging
Markets Series, respectively.
EARNED INCOME CREDIT:
In addition, the Fund has entered into arrangements with its custodian
whereby net interest earned on univested cash balances was used to reduce a
portion of the Fund's custody expenses. Custody expense in the accompanying
financial statements is presented before reduction for credits. During the year
ended October 31, 2011, expenses reduced were as follows (amounts in thousands):
FEES PAID
INDIRECTLY
----------
The DFA International Value Series. $7
The Emerging Markets Series........ 1
41
FEES PAID TO OFFICERS AND DIRECTORS/TRUSTEES:
Certain Officers and Directors/Trustees of the Advisor are also Officers and
Directors/Trustees of the Funds; however, such Officers and Directors/Trustees
(with the exception of the Chief Compliance Officer ("CCO")) receive no
compensation from the Trust. For the year ended October 31, 2011, the total
related amounts paid by the Trust to the CCO were $84 (in thousands). The total
related amounts paid by each of the Series are included in Other Expenses on
the Statement of Operations.
D. DEFERRED COMPENSATION:
At October 31, 2011, the total liability for deferred compensation to
Directors/Trustees is included in Accrued Expenses and Other Liabilities on the
Statement of Assets and Liabilities as follows (amounts in thousands):
The DFA International Value Series. $176
The Emerging Markets Series........ 60
E. PURCHASES AND SALES OF SECURITIES:
For the year ended October 31, 2011, the Series made the following purchases
and sales of investment securities, other than short-term investments and U.S.
government securities (amounts in thousands):
PURCHASES SALES
---------- --------
The DFA International Value Series. $1,526,295 $660,584
The Emerging Markets Series........ 529,036 398,877
There were no purchases or sales of long-term U.S. government securities.
F. FEDERAL INCOME TAXES:
No provision for federal income taxes is required since the Series are
treated as partnerships for Federal income tax purposes. Any net investment
income and realized and unrealized gains and losses have been deemed to have
been "passed down" to their respective partners.
At October 31, 2011, the total cost and aggregate gross unrealized
appreciation and (depreciation) of securities for federal income tax purposes
were different from amounts reported for financial reporting purposes (amounts
in thousands):
NET
UNREALIZED
FEDERAL UNREALIZED UNREALIZED APPRECIATION
TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
---------- ------------ -------------- --------------
The DFA International
Value Series........... $7,064,348 $1,142,717 $(588,308) $ 554,409
The Emerging Markets
Series................. 1,592,448 1,085,985 (46,544) 1,039,441
The difference between book basis and tax-basis unrealized appreciation
(depreciation) is primarily attributable to the tax deferral of losses on wash
sales and on investments in passive foreign investment companies.
Accounting for Uncertainty in Income Taxes sets forth a minimum threshold
for financial statement recognition of the benefit of a tax position taken or
expected to be taken on a tax return. Management has analyzed each Series' tax
positions and has concluded that no provision for income tax is required in any
Series' financial statements. No Series is aware of any tax positions for which
it is more likely than not that the total amounts of unrecognized tax benefits
will significantly change in the next twelve months. The Series' federal tax
returns for the prior three fiscal years remain subject to examination by the
Internal Revenue Service.
On November 1, 2008, The DFA International Value Series, a master fund in a
RIC/RIC master-feeder structure with five RIC feeders and other direct client
investor(s), made a "Check-the-box" election for federal income tax purposes
pursuant to Treasury Regulation (S)301.7701-3, to change its federal entity
classification from a corporation
42
taxable as a regulated investment company to a partnership. As a result of this
election, the master fund is deemed to have distributed all of its assets and
liabilities, in a taxable transaction, to its shareholders in liquidation of
the master fund. Immediately thereafter, the shareholders contributed all of
the distributed assets and liabilities to a newly formed partnership. The final
tax year end of The DFA International Value Series was October 31, 2008. For
Federal income tax purposes, pursuant to Internal Revenue Code (S)336(a), the
master fund recognizes gain or loss as if the master's investment securities
were sold to its shareholders and, pursuant to IRC Code (S)331, each of the
Portfolios recognizes gain or loss as if it liquidated its investment in the
master. As a result of the transaction, The DFA International Value Series
recognized a ($2,309,440,866) and ($718,733) capital and currency loss
respectively for tax year ended October 31, 2008. For tax purposes, pursuant to
IRC Code (S)334(a), each of the Portfolios will take a fair market value basis
in the securities deemed received by them and a new holding period for those
securities commences on the deemed liquidation date.
G. FINANCIAL INSTRUMENTS:
In accordance with the Series' investment objectives and policies, the
Series may invest in certain financial instruments that have off-balance sheet
risk in excess of the amounts recognized in the financial statements and
concentrations of credit and market risk. These instruments and their
significant corresponding risks are described below:
1. Repurchase Agreements: The Portfolios may purchase certain U.S.
Government securities subject to the counterparty's agreement to repurchase
them at an agreed upon date and price. The counterparty will be required on a
daily basis to maintain the value of the collateral subject to the agreement at
not less than the repurchase price (including accrued interest). The agreements
are conditioned upon the collateral being deposited under the Federal Reserve
book-entry system with the Portfolios' custodian or a third party
sub-custodian. In the event of default or bankruptcy by the other party to the
agreement, retention of the collateral may be subject to legal proceedings.
2. Foreign Market Risks: Investments in foreign markets may involve certain
consideration and risks not typically associated with investments in the United
States of America, including the possibility of future political and economic
developments and the level of foreign government supervision and regulation of
foreign securities markets. These markets are generally smaller, less liquid
and more volatile than the major securities markets in the United States of
America. Consequently, acquisition and disposition of securities by the Series
may be inhibited.
DERIVATIVE FINANCIAL INSTRUMENTS:
Disclosures on derivative instruments and hedging activities are intended to
improve financial reporting for derivative instruments by enabling investors to
understand how and why a fund uses derivatives, how derivatives are accounted
for and how derivative instruments affect a fund's results of operations and
financial position. Summarized below are the specific types of derivative
instruments used by the Series.
3. Futures Contracts: The Series may enter into futures contracts to gain
market exposure on uninvested cash pending investment in securities or to
maintain liquidity to pay redemptions. Upon entering into a futures contract,
the Series deposits cash or pledges U.S. Government securities to a broker,
equal to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Subsequent payments are received from or paid to the broker
each day, based on the daily fluctuation in the market value of the contract.
These receipts or payments are known as "variation margin" and are recorded
daily by the Series as unrealized gains or losses until the contracts are
closed. When the contracts are closed, the Series records a realized gain or
loss, which is presented in the Statements of Operations as a net realized gain
or loss on futures, equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed.
Risks may arise upon entering into futures contracts from potential
imperfect price correlations between the futures contracts and the underlying
securities or indices, from the possibility of an illiquid secondary market for
these instruments and from the possibility that the Series could lose more than
the initial margin requirements. The Series entering into stock index futures
are subject to equity price risk from those futures contracts. Counterparty
credit risk related to exchange-traded futures is minimal because the
exchange's clearinghouse, as counterparty to all exchange-traded futures,
guarantees the futures against default.
43
Additional disclosure on derivative instruments is required showing a
summary by primary risk exposure of the derivatives instruments' (i) location
in the balance sheet and fair value at period end and (ii) the location in the
Statements of Operations and the realized and change in unrealized gain or loss
over the reporting period.
At October 31, 2011, the Series had no outstanding futures contracts.
H. LINE OF CREDIT:
The Trust, together with other Dimensional-advised portfolios, has entered
into $250 million unsecured discretionary line of credit effective June 22,
2011 with its domestic custodian bank. Each portfolio is permitted to borrow,
subject to its investment limitations, up to a maximum of $250 million, as long
as total borrowings under the line of credit do not exceed $250 million in the
aggregate. Borrowings under the line of credit are charged interest at rates
agreed to by the parties at the time of borrowing. Each portfolio is
individually, and not jointly, liable for its particular advances under the
line of credit. There is no commitment fee on the unused portion of the line of
credit. The agreement for the discretionary line of credit may be terminated by
either party at any time. The line of credit is scheduled to expire on June 22,
2012. There were no borrowing by the Series under this line of credit during
the year ended October 31, 2011.
The Trust, together with other Dimensional-advised portfolios, has also
entered into an additional $500 million unsecured line of credit effective
January 15, 2011 with its international custodian bank. Each portfolio is
permitted to borrow, subject to its investment limitations, up to a maximum of
$500 million, as long as total borrowings under the line of credit do not
exceed $500 million in the aggregate. Each portfolio is individually, and not
jointly, liable for its particular advances under the line of credit.
Borrowings under the line of credit are charged interest at rates agreed to by
the parties at the time of borrowing. There is no commitment fee on the unused
portion of the line of credit. The agreement for the line of credit expires on
January 13, 2012. The Trust, together with other Dimensional-advised
portfolios, expects to enter into a new line of credit with substantially the
same terms as its existing line of credit prior to its expiration.
For the year ended October 31, 2011, borrowings under this line of credit by
the Series were as follows (amounts in thousands, except percentages and days):
WEIGHTED WEIGHTED NUMBER OF INTEREST MAXIMUM AMOUNT
AVERAGE AVERAGE DAYS EXPENSE BORROWED DURING
INTEREST RATE LOAN BALANCE OUTSTANDING* INCURRED THE PERIOD
------------- ------------ ------------ -------- ---------------
The DFA International Value Series. 0.86% $2,623 14 $1 $12,532
The Emerging Markets Series........ 0.90% 4,082 42 4 15,798
*Number of Days Outstanding represents the total of single or consecutive
days during the year ended October 31, 2011 that each Series' available line of
credit was utilized.
There were no outstanding borrowings by the Series under this line of credit
as of October 31, 2011.
I. SECURITIES LENDING:
As of October 31, 2011, some of the Series had securities on loan to
brokers/dealers, for which each Series received cash collateral. In addition,
The Emerging Markets Series received non-cash collateral with a market value of
$56,173 (in thousands). Each Series invests the cash collateral, as described
below, and records a liability for the return of the collateral, during the
period the securities are on loan. Loans of securities are expected at all
times to be secured by collateral equal to at least (i) 100% of the current
market value of the loaned securities with respect to securities of the U.S.
government or its agencies, (ii) 102% of the current market value of the loaned
securities with respect to U.S. securities, and (iii) 105% of the current
market value of the loaned securities with respect to foreign securities.
However, daily market fluctuations could cause the Series' collateral to be
lower or higher than the expected thresholds. If this were to occur, the
collateral would be adjusted the next business day to ensure adequate
collateralization. In the event of default or bankruptcy by the other party to
the agreement, realization and/or retention of the collateral may be subject to
legal proceedings. If the borrower fails to return loaned securities, and cash
collateral being maintained by the borrower is insufficient to cover the value
of loaned securities and provided such
44
collateral insufficiency is not the result of investment losses, the lending
agent has agreed to pay the amount of the shortfall to the Series or, at the
option of the lending agent, to replace the securities.
Subject to their stated investment policies, each Series will generally
invest the cash collateral received for the loan securities in The DFA Short
Term Investment Fund LP (the "Money Market Series"), an affiliated registered
money market fund advised by the Advisor for which the Advisor receives a
management fee of 0.05%of the average daily net assets of the Money Market
Series. Each Series also may invest in cash collateral received for the loaned
securities in securities of the U.S. government or its agencies, repurchase
agreements collateralized by securities of the U.S. government or its agencies,
and affiliated and unaffliated registered and unregistered money market funds.
For purposes of this paragraph, agencies include both agency debentures and
agency mortgage-backed securites. In addition, each Series will be able to
terminate the loan at any time and will receive reasonable interest on the
loan, as well as amounts equal to any dividends, interest or other
distributions on the loaned securities. However, dividend income received from
loaned securities may not be eligible to be taxed at qualified dividend income
rates.
J. INDEMNITEES; CONTRACTUAL OBLIGATIONS:
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust.
In the normal course of business, the Trust enters into contracts that
contain a variety of representations and warranties which provide general
indemnification. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust
and/or its affiliates that have not yet occurred. However, based on experience,
the Trust expects the risk of loss to be remote.
K. RECENTLY ISSUED ACCOUNTING STANDARDS:
In January 2010, the Financial Accounting Standards Board ("FASB") issued
Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about
Fair Value Measurements." ASU No. 2010-06 amends FASB Accounting Standards
Codification Topic 820, Fair Value Measurements and Disclosures, to require
additional disclosures in the roll forward of activity in Level 3 fair value
measurements effective for interim and annual reporting periods beginning after
December 15, 2010. Management is currently evaluating the impact ASU
No. 2010-06 will have on its financial statement disclosures.
In May 2011, the FASB issued ASU No. 2011-04 "Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. Generally Accepted
Accounting Principles ("GAAP") and International Financial Reporting Standards
("IFRSs")." ASU 2011-04 includes common requirements for measurement of and
disclosure about fair value between U.S. GAAP and IFRSs. ASU 2011-04 will
require reporting entities to disclose quantitative information about the
unobservable inputs used in the fair value measurements categorized within
Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require
reporting entities to make disclosures about amounts and reasons for all
transfers in and out of Level 1 and Level 2 fair value measurements. The new
and revised disclosures are effective for interim and annual reporting periods
beginning after December 15, 2011. At this time, management is evaluating the
implications of ASU No. 2011-04 and its impact on the financial statements has
not been determined.
L. OTHER:
The Series are subject to claims and suits that arise from time to time in
the ordinary course of business (for example, in The Tribune Company
Bankruptcy, certain creditors have filed actions against all shareholders of
The Tribune Company who tendered shares when the Tribune Company went private
in 2007 in a leveraged buy-out transaction, seeking the return of all proceeds
received by the shareholders). Although management currently believes that
resolving claims against us, individually or in aggregate, will not have a
material adverse impact on our financial position, our results of operations,
or our cash flows, these matters are subject to inherent uncertainties and
management's view of these matters may change in the future.
45
M. SUBSEQUENT EVENT EVALUATIONS:
Management has evaluated the impact of all subsequent events on the Series
and has determined that there are no subsequent events requiring recognition or
disclosure in the financial statements.
46
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS OF THE SERIES, AS DEFINED, AND
BOARD OF TRUSTEES OF THE DFA INVESTMENT TRUST COMPANY:
In our opinion, the accompanying statements of assets and liabilities,
including the summary schedules of portfolio holdings, and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
The DFA International Value Series and The Emerging Market Series (constituting
portfolios within The DFA Investment Trust Company, hereafter referred to as
the "Series") at October 31, 2011, the results of each of their operations for
the year then ended, the changes in each of their net assets and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Series' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at October 31, 2011 by
correspondence with the custodians, brokers, and the transfer agent of the
investee fund, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 22, 2011
47
FUND MANAGEMENT
(UNAUDITED)
TRUSTEES/DIRECTORS
Each Board of Trustees/Directors of The DFA Investment Trust Company Inc.
("DFAITC"), DFA Investment Dimensions Group Inc. ("DFAIDG"), Dimensional
Investment Group Inc. ("DIG") and Dimensional Emerging Markets Value Fund
("DEM") (each, the "Fund" and collectively, the "Funds") is responsible for
establishing the Funds' policies and for overseeing the management of the
Funds. The Trustees/Directors of the Funds, including all of the disinterested
Trustees/Directors, have adopted written procedures to monitor potential
conflicts of interest that might develop between portfolios of the Funds (the
"Feeder Portfolios") that invest in certain series of DFAITC or DEM (the
"Master Funds").
Each Board has four standing committees, an Audit Committee, a Nominating
Committee, a Portfolio Performance and Service Review Committee (the
"Performance Committee") and an Independent Review Committee (the "Review
Committee"). The Audit Committee is comprised of George M. Constantinides,
Roger G. Ibbotson and Abbie J. Smith. Each member of the Audit Committee is a
disinterested Trustee/Director. The Audit Committee oversees the Fund's
accounting and financial reporting policies and practices, the Fund's internal
controls, the Fund's financial statements and the independent audits thereof
and performs other oversight functions as requested by the Board. The Audit
Committee recommends the appointment of each Fund's independent registered
certified public accounting firm and also acts as a liaison between the Fund's
independent registered certified public accounting firm and the full Board.
There were two Audit Committee meetings held during the fiscal year ended
October 31, 2011.
Each Board's Nominating Committee is comprised of George M. Constantinides,
John P. Gould, Roger G. Ibbotson, Myron S. Scholes, Edward P. Lazear and Abbie
J. Smith. Each member of the Nominating Committee is a disinterested
Trustee/Director. The Nominating Committee for each Board makes recommendations
for nominations of disinterested and interested members on the Board to the
full Board. The Nominating Committee evaluates a candidate's qualification for
Board membership and the independence of such candidate from the Advisor and
other principal service providers. There was one Nominating Committee meeting
held for each Fund during the fiscal year ended October 31, 2011.
Each Board's Performance Committee is comprised of George M. Constantinides,
Roger G. Ibbotson, Abbie J. Smith, Edward P. Lazear, John P. Gould and Myron S.
Scholes. Each member of the Performance Committee is a disinterested
Trustee/Director. The Performance Committee regularly reviews and monitors the
investment performance of the Fund's series and reviews the performance of the
Fund's service providers. There were six Performance Committee meetings held
during the fiscal year ended October 31, 2011.
Each Board's Review Committee consists of both interested and disinterested
Trustees/Directors. The Review Committee is comprised of John P. Gould, Edward
P. Lazear, Myron S. Scholes and Eduardo A. Repetto. The Review Committee
assists the Board in carrying out its fiduciary duties with respect to the
oversight of the Fund and its performance. At the request of the Board or the
Advisor, the Review Committee may (i) review the design of possible new series
of the Fund, (ii) review performance of existing portfolios of the Fund and
discuss and recommend possible enhancements to the portfolios' investment
strategies, (iii) review proposals by the Advisor to modify or enhance the
investment strategies or policies of each portfolio, and (iv) consider issues
relating to investment services for each portfolio of the Fund. The Review
Committee was formed on December 17, 2010, and there were two Review Committee
meetings held during the fiscal year ended October 31, 2011.
Certain biographical information for each disinterested Trustee/Director and
each interested Trustee/Director of the Funds is set forth in the tables below,
including a description of each Trustee/Director's experience as a Trustee/
Director of the Funds and as a director or trustee of other funds, as well as
other recent professional experience.
The statements of additional information (together, "SAI") of the Funds
include additional information about each Trustee/Director. You may obtain
copies of the SAI and prospectus of each Fund advised by Dimensional Fund
Advisors LP by calling collect (512) 306-7400 or by mailing a request to
Dimensional Fund Advisors LP, 6300 Bee Cave Road, Building One, Austin, Texas
78746. Prospectuses are also available at www.dimensional.com.
48
NAME, POSITION PORTFOLIOS WITHIN THE
WITH THE FUND, TERM OF OFFICE/1/ AND DFA FUND COMPLEX/2/ PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND
ADDRESS AND AGE LENGTH OF SERVICE OVERSEEN OTHER DIRECTORSHIPS OF PUBLIC COMPANIES HELD
--------------- -------------------- --------------------- -------------------------------------------------------
DISINTERESTED TRUSTEES/DIRECTORS
---------------------------------
George M. Constantinides DFAITC - since 1993 94 portfolios in 4 Leo Melamed Professor of Finance, The University of
Director of DFAIDG and DIG. DFAIDG - since 1983 investment Chicago Booth School of Business.
Trustee of DFAITC and DEM. DIG - since 1993 companies
The University of Chicago DEM - since 1993
Booth School of Business
5807 S. Woodlawn Avenue
Chicago, IL 60637
Age: 64
John P. Gould DFAITC - since 1993 94 portfolios in 4 Steven G. Rothmeier Distinguished Service Professor of
Director of DFAIDG and DIG. DFAIDG - since 1986 investment Economics, The University of Chicago Booth School of
Trustee of DFAITC and DEM. DIG - since 1993 companies Business (since 1965). Member and Chair, Competitive
The University of Chicago DEM - since 1993 Markets Advisory Committee, Chicago Mercantile Exchange
Booth School of Business (futures trading exchange) (since 2004). Formerly,
5807 S. Woodlawn Avenue Director of UNext, Inc. (1999-2006). Trustee, Harbor
Chicago, IL 60637 Fund (registered investment company) (30 Portfolios)
Age: 72 (since 1994). Formerly, Member of the Board of
Milwaukee Mutal Insurance Company (1997-2010).
Roger G. Ibbotson DFAITC - since 1993 94 portfolios in 4 Professor in Practice of Finance, Yale School of
Director of DFAIDG and DIG. DFAIDG - since 1981 investment Management (since 1984). Chairman, CIO and Partner,
Trustee of DFAITC and DEM. DIG - since 1993 companies Zebra Capital Management, LLC (hedge fund manager)
Yale School of Management DEM - since 1993 (since 2001). Consultant to Morningstar, Inc. (since
135 Prospect Street 2006). Formerly, Chairman, Ibbotson Associates, Inc.,
New Haven, CT 06520-8200 Chicago, IL (software data publishing and consulting)
Age: 68 (1977-2006). Formerly, Director, BIRR Portfolio
Analysis, Inc. (software products) (1990-2010).
49
NAME, POSITION PORTFOLIOS WITHIN THE
WITH THE FUND, TERM OF OFFICE/1/ AND DFA FUND COMPLEX/2/ PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND
ADDRESS AND AGE LENGTH OF SERVICE OVERSEEN OTHER DIRECTORSHIPS OF PUBLIC COMPANIES HELD
--------------- -------------------- --------------------- -----------------------------------------------
Edward P. Lazear DFAITC - since 2010 94 portfolios in 4 Morris Arnold Cox Senior Fellow, Hoover
Director of DFAIDG and DIG. DFAIDG - since 2010 investment companies Institution (since 2002). Jack Steele Parker
Trustee of DFAITC and DEM. DIG - since 2010 Professor of Human Resources Management and
Stanford University DEM - since 2010 Economics, Graduate School of Business,
Graduate School of Business Stanford University (since 1995).
518 Memorial Way Cornerstone Research (expert testimony and
Stanford, CA 94305-5015 economic and financial analysis) (since
Age: 63 2009). Formerly, Chairman of the President
George W. Bush's Council of Economic
Advisers (2006-2009). Formerly, Council of
Economic Advisors, State of California
(2005-2006). Formerly, Commissioner, White
House Panel on Tax Reform (2005).
Myron S. Scholes DFAITC - since 1993 94 portfolios in 4 Frank E. Buck Professor Emeritus of Finance,
Director of DFAIDG and DIG. DFAIDG - since 1981 investment companies Stanford University (since 1981). Formerly,
Trustee of DFAITC and DEM. DIG - since 1993 Chairman, Platinum Grove Asset Management,
c/o Dimensional Fund DEM - since 1993 L.P. (hedge fund) (formerly, Oak Hill
Advisors, L.P. Platinum Partners) (1999-2009). Formerly,
6300 Bee Cave Road Managing Partner, Oak Hill Capital
Building 1 Management (private equity firm) (until
Austin, TX 78746 2004). Director, American Century Fund
Age: 70 Complex (registered investment companies)
(40 Portfolios) (since 1980). Formerly,
Director, Chicago Mercantile Exchange
(2001-2008).
Abbie J. Smith DFAITC - since 2000 94 portfolios in 4 Boris and Irene Stern Distinguished Service
Director of DFAIDG and DIG. DFAIDG - since 2000 investment companies Professor of Accounting, The University of
Trustee of DFAITC and DEM. DIG - since 2000 Chicago Booth School of Business (since
The University of Chicago DEM - since 2000 1980). Co-Director Investment Research,
Booth School of Business Fundamental Investment Advisors (hedge fund)
5807 S. Woodlawn Avenue (since 2008). Director, HNI Corporation
Chicago, IL 60637 (formerly known as HON Industries Inc.)
Age: 58 (office furniture) (since 2000). Director,
Ryder System Inc. (transportation, logistics
and supply-chain management) (since 2003).
Trustee, UBS Funds (3 investment companies
within the fund complex) (52 portfolios)
(since 2009).
50
NAME, POSITION PORTFOLIOS WITHIN THE
WITH THE FUND, TERM OF OFFICE/1 /AND DFA FUND COMPLEX/2/ PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND
ADDRESS AND AGE LENGTH OF SERVICE OVERSEEN OTHER DIRECTORSHIPS OF PUBLIC COMPANIES HELD
--------------- ------------------- --------------------- -----------------------------------------------
INTERESTED TRUSTEES/DIRECTORS*
-----------------------------------------
David G. Booth DFAITC -since 1993 94 portfolios in 4 Chairman, Director/Trustee, President, and
Chairman, Director, DFAIDG -since 1981 investment companies Co-Chief Executive Officer (since January
Co-Chief Executive Officer DIG - since 1992 2010) of Dimensional Holdings Inc.,
and President of DFAIDG and DEM - since 1993 Dimensional Fund Advisors LP, DFA Securities
DIG. LLC, Dimensional Emerging Markets Value
Chairman, Trustee, Co-Chief Fund, DFAIDG, Dimensional Investment Group
Executive Officer and Inc. and The DFA Investment Trust Company.
President of DFAITC and Director of Dimensional Fund Advisors Ltd.,
DEM. Dimensional Funds PLC, Dimensional Funds II
6300 Bee Cave Road, PLC, DFA Australia Limited and Dimensional
Building One Cayman Commodity Fund I Ltd. Chairman and
Austin, Texas 78746 President of Dimensional SmartNest LLC and
Age: 64 Dimensional SmartNest (US) LLC. Chairman,
Director and Co-Chief Executive Officer of
Dimensional Fund Advisors Canada ULC.
Limited Partner, Oak Hill Partners (since
2001) and VSC Investors, LLC (since 2007).
Trustee, The University of Chicago. Trustee,
University of Kansas Endowment Association.
Formerly, Chief Executive Officer (until
2010) and Chief Investment Officer
(2003-2007) of Dimensional Fund Advisors LP,
DFA Securities LLC, Dimensional Emerging
Markets Value Fund, DFAIDG, Dimensional
Investment Group Inc., The DFA Investment
Trust Company and Dimensional Holdings Inc.
Formerly, Chief Investment Officer of
Dimensional Fund Advisors Ltd. Formerly,
President and Chief Investment Officer of
DFA Australia Limited. Formerly, Director,
SA Funds (registered investment company).
Eduardo A. Repetto DFAITC -since 2009 94 portfolios in 4 Co-Chief Executive Officer (since January
Director, Co-Chief Executive DFAIDG -since 2009 investment companies 2010), Chief Investment Officer (since March
Officer and Chief Investment DIG - since 2009 2007) and Director/Trustee of Dimensional
Officer of DFAIDG and DIG. DEM - since 2009 Holdings Inc., Dimensional Fund Advisors LP,
Trustee, Co-Chief Executive DFA Securities LLC, Dimensional Emerging
Officer and Chief Investment Markets Value Fund, DFAIDG, Dimensional
Officer of DFAITC and DEM. Investment Group Inc., The DFA Investment
6300 Bee Cave Road, Trust Company and Dimensional Cayman
Building One Commodity Fund I Ltd. Co-Chief Executive
Austin, TX 78746 Officer, President and Chief Investment
Age: 44 Officer of Dimensional Fund Advisors Canada
ULC. Chief Investment Officer, Vice
President and Director of DFA Australia
Limited. Director of Dimensional Fund
Advisors Ltd., Dimensional Funds PLC and
Dimensional Funds II PLC. Co-Chief Executive
Officer of Dimensional SmartNest LLC and
Dimensional SmartNest (US) LLC. Formerly,
Vice President of Dimensional Holdings Inc.,
Dimensional Fund Advisors LP, DFA Securities
LLC, Dimensional Emerging Markets Value
Fund, DFAIDG, Dimensional Investment Group
Inc., The DFA Investment Trust Company and
Dimensional Fund Advisors Canada ULC.
/1/ Each Trustee/Director holds office for an indefinite term until his or her
successor is elected and qualified.
/2/ Each Trustee/Director is a director or trustee of each of the four
registered investment companies within the DFA Fund Complex, which
includes the Funds.
* Interested Trustees/Directors are described as such because they are deemed
to be "interested persons," as that term is defined under the Investment
Company Act of 1940, as amended, due to their positions with Dimensional
Fund Advisors LP.
51
OFFICERS
The name, age, information regarding positions with the Funds and the
principal occupation for each officer of the Funds are set forth below. Each
officer listed below holds the same office (except as otherwise noted) in the
following entities: Dimensional Fund Advisors LP (prior to November 3, 2006,
Dimensional Fund Advisors Inc.) ("Dimensional"), DFA Securities Inc., DFAIDG,
DIG, DFAITC and DEM (collectively, the "DFA Entities"). The address of each
officer is: Dimensional Fund Advisors LP, 6300 Bee Cave Road, Building One,
Austin, Texas 78746, unless otherwise indicated.
TERM OF OFFICE/1/
NAME, POSITION WITH THE FUND AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE SERVICE DURING PAST 5 YEARS
---------------------------- ---------------- ---------------------------------------
OFFICERS
----------------
April A. Aandal Since 2008 Vice President, Global Business
Vice President, Global Development of all the DFA Entities.
Business Development Chief Learning Officer of Dimensional
Age: 48 (September 2008-October 2011).
Formerly, Regional Director of
Dimensional (2004-2008).
Darryl D. Avery Since 2005 Vice President of all the DFA Entities.
Vice President
Age: 45
Arthur H. Barlow Since 1993 Vice President of all the DFA Entities.
Vice President Formerly, Vice President of DFA
Age: 55 Australia Limited and Dimensional
Fund Advisors Ltd.
John T. Blood Since 2011 Vice President of all the DFA Entities.
Vice President Regional Director for Dimensional
Age: 42 (2010). Formerly, Chief Market
Strategist at Commonwealth Financial
(2007-2010); Director of Research at
Commonwealth Financial (2000-2007).
Scott A. Bosworth Since 2007 Vice President of all the DFA Entities.
Vice President Regional Director of Dimensional
Age: 42 (since November 1997).
Valerie A. Brown Since 2001 Vice President and Assistant Secretary
Vice President and Assistant of all the DFA Entities, DFA Australia
Secretary Limited, Dimensional Fund Advisors
Age: 44 Ltd., Dimensional Fund Advisors
Canada ULC (since 2003) and
Dimensional Cayman Commodity
Fund I Ltd.
David P. Butler Since 2007 Vice President of all the DFA Entities.
Vice President Head of Global Financial Services of
Age: 47 Dimensional (since 2008). Formerly,
Regional Director of Dimensional
(January 1995 to January 2005).
James G. Charles Since 2011 Vice President of all the DFA Entities.
Vice President Regional Director for Dimensional
Age: 55 (2008-2010). Formerly, Vice President,
Client Portfolio Manager at American
Century Investments (2001-2008).
Joseph H. Chi Since 2009 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 45 (since October 2005).
Stephen A. Clark Since 2004 Vice President of all the DFA Entities,
Vice President DFA Australia Limited and
Age: 39 Dimensional Fund Advisors Canada
ULC.
Robert P. Cornell Since 2007 Vice President of all the DFA Entities.
Vice President Regional Director of Financial Services
Age: 62 Group of Dimensional (since August
1993).
George H. Crane Since 2010 Vice President of all the DFA Entities.
Vice President Formerly, Senior Vice President and
Age: 56 Managing Director at State Street Bank
& Trust Company (2007-2008).
Managing Director, Head of
Investment Administration and
Operations at State Street Research &
Management Company (2002-2005).
Christopher S. Crossan Since 2004 Vice President and Global Chief
Vice President and Global Compliance Officer of all the DFA
Chief Compliance Officer Entities, DFA Australia Limited,
Age: 45 Dimensional Fund Advisors Ltd.,
Dimensional SmartNest LLC and
Dimensional SmartNest (US) LLC.
Chief Compliance Officer of
Dimensional Fund Advisors Canada
ULC.
52
TERM OF OFFICE/1/
NAME, POSITION WITH THE FUND AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE SERVICE DURING PAST 5 YEARS
---------------------------- ---------------- ----------------------------------------
James L. Davis Since 1999 Vice President of all the DFA Entities.
Vice President Formerly, Vice President of DFA
Age: 54 Australia Limited and Dimensional
Fund Advisors Ltd.
Robert T. Deere Since 1994 Vice President of all the DFA Entities,
Vice President DFA Australia Limited and
Age: 54 Dimensional Fund Advisors Canada
ULC.
Peter F. Dillard Since 2010 Vice President of all the DFA Entities.
Vice President Research Associate for Dimensional
Age: 39 (since August 2008). Formerly,
Research Assistant for Dimensional
(April 2006-August 2008).
Robert W. Dintzner Since 2001 Vice President of all the DFA Entities.
Vice President and Chief Chief Communications Officer of
Communications Officer Dimensional (since 2010).
Age: 41
Richard A. Eustice Since 1998 Vice President and Assistant Secretary
Vice President and Assistant of all the DFA Entities and DFA
Secretary Australia Limited. Chief Operating
Age: 46 Officer of Dimensional Fund Advisors
Ltd. (since July 2008). Formerly, Vice
President of Dimensional Fund
Advisors Ltd.
Gretchen A. Flicker Since 2004 Vice President of all the DFA Entities.
Vice President
Age: 40
Jed S. Fogdall Since 2008 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 37 (since September 2004).
Jeremy P. Freeman Since 2009 Vice President of all the DFA Entities.
Vice President Senior Technology Manager for
Age: 40 Dimensional (since June 2006).
Formerly, Principal at AIM
Investments/Amvescap PLC (now
Invesco) (June 1998-June 2006).
Mark R. Gochnour Since 2007 Vice President of all the DFA Entities.
Vice President Regional Director of Dimensional.
Age: 44
Henry F. Gray Since 2000 Vice President of all the DFA Entities.
Vice President Formerly, Vice President of DFA
Age: 44 Australia Limited.
John T. Gray Since 2007 Vice President of all the DFA Entities.
Vice President Formerly, Regional Director of
Age: 37 Dimensional (January 2005 to February
2007).
Joel H. Hefner Since 2007 Vice President of all the DFA Entities.
Vice President Regional Director of Dimensional
Age: 43 (since June 1998).
Julie C. Henderson Since 2005 Vice President and Fund Controller of
Vice President and Fund all the DFA Entities and Dimensional
Controller Cayman Commodity Fund I Ltd.
Age: 37
Kevin B. Hight Since 2005 Vice President of all the DFA Entities.
Vice President
Age: 43
Christine W. Ho Since 2004 Vice President of all the DFA Entities.
Vice President
Age: 43
Michael C. Horvath Since 2011 Vice President of all the DFA Entities.
Vice President Formerly, Managing Director, Co-Head
Age: 51 Global Consultant Relations at
BlackRock (2004-2011).
Jeff J. Jeon Since 2004 Vice President of all the DFA Entities
Vice President and Dimensional Cayman Commodity
Age: 37 Fund I Ltd.
53
TERM OF OFFICE/1/
NAME, POSITION WITH THE FUND AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE SERVICE DURING PAST 5 YEARS
---------------------------- -------------------------- ----------------------------------------
Patrick M. Keating Since 2003 Vice President of all the DFA Entities
Vice President and Chief Operating and Dimensional Cayman Commodity
Officer Fund I Ltd. and Chief Operating
Age: 56 Officer of Dimensional and
Dimensional Cayman Commodity
Fund I Ltd. Director, Vice President
and Chief Privacy Officer of
Dimensional Fund Advisors Canada
ULC. Director of DFA Australia
Limited.
David M. Kershner Since 2010 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 40 (since June 2004).
Timothy R. Kohn Since 2011 Vice President of all the DFA Entities.
Vice President Head of Defined Contribution Sales for
Age: 40 Dimensional (since August 2010).
Formerly, Chief DC Strategist,
Barclays Global Investors (2005-2009).
Joseph F. Kolerich Since 2004 Vice President of all the DFA Entities.
Vice President
Age: 39
Stephen W. Kurad Since 2011 Vice President of all the DFA Entities.
Vice President Regional Director for Dimensional
Age: 42 (2007-2010).
Michael F. Lane Since 2004 Vice President of all the DFA Entities.
Vice President
Age: 44
Juliet Lee Since 2005 Vice President of all the DFA Entities.
Vice President
Age: 40
Marlena I. Lee Since 2011 Vice President of all the DFA Entities.
Vice President Research Associate for Dimensional
Age: 30 (July 2008-2010).
Apollo D. Lupescu Since 2009 Vice President of all the DFA Entities.
Vice President Regional Director for Dimensional
Age: 42 (since February 2004).
Kenneth M. Manell Since 2010 Vice President of all the DFA Entities
Vice President and Dimensional Cayman Commodity
Age: 38 Fund I Ltd. Counsel for Dimensional
(since September 2006). Formerly,
Assistant General Counsel at Castle &
Cooke (January 2004-September
2006).
Aaron M. Marcus Since 2008 Vice President and Head of Global
Vice President & Head Human Resources of Dimensional.
of Global Human Resources Formerly, Global Head of Recruiting
Age: 41 and Vice President of Goldman Sachs
& Co. (June 2006 to January 2008),
and Global Co-Head of HR of the
Equities & FICC Division, and Vice
President of Goldman Sachs & Co.
(May 2005 to May 2006).
David R. Martin Since 2007 Vice President, Chief Financial Officer
Vice President, Chief and Treasurer of all the DFA Entities.
Financial Officer and Treasurer Director, Vice President, Chief
Age: 54 Financial Officer and Treasurer of
Dimensional Fund Advisors Ltd. and
DFA Australia Limited. Chief
Financial Officer, Treasurer, and Vice
President of Dimensional Fund
Advisors Canada ULC, Dimensional
SmartNest LLC, Dimensional
SmartNest (US) LLC and Dimensional
Cayman Commidity Fund I Ltd.
Director of Dimensional Funds PLC
and Dimensional Funds II PLC.
Formerly, Executive Vice President
and Chief Financial Officer of Janus
Capital Group Inc. (June 2005 to
March 2007).
Catherine L. Newell Vice President since 1997 Vice President and Secretary of all the
Vice President and Secretary and Secretary since 2000 DFA Entities. Director, Vice President
Age: 47 and Secretary of DFA Australia
Limited and Dimensional Fund
Advisors Ltd. (since February 2002,
April 1997 and May 2002,
respectively). Vice President and
Secretary of Dimensional Fund
Advisors Canada ULC (since June
2003), Dimensional SmartNest LLC,
Dimensional SmartNest (US) LLC and
Dimensional Cayman Commodity
Fund I Ltd. Director, Dimensional
Funds PLC and Dimensional Funds II
PLC (since 2002 and 2006,
respectively). Formerly, Assistant
Secretary of all DFA Entities, DFA
Australia Limited and Dimensional
Fund Advisors Ltd.
54
TERM OF OFFICE/1/
NAME, POSITION WITH THE FUND AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE SERVICE DURING PAST 5 YEARS
---------------------------- ---------------- ----------------------------------------
Christian A. Newton Since 2009 Vice President of all DFA Entities.
Vice President Web Services Manager for
Age: 36 Dimensional (since January 2008).
Formerly, Design Manager of
Dimensional (2005-2008).
Pamela B. Noble Since 2011 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 47 (2008-2010). Formerly, Vice President
and Portfolio Manager at USAA
Investment Management Company
(2001-2006).
Carolyn L. O Since 2010 Vice President of all the DFA Entities
Vice President and Dimensional Cayman Commodity
Age: 37 Fund I Ltd. Deputy General Counsel,
Funds (since 2011). Counsel for
Dimensional (2007-2011). Formerly,
Associate at K&L Gates LLP (January
2004-September 2007).
Gerard K. O'Reilly Since 2007 Vice President of all the DFA Entities.
Vice President Formerly, Research Associate of
Age: 34 Dimensional (2004 to 2006).
Daniel C. Ong Since 2009 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 37 (since July 2005).
Kyle K. Ozaki Since 2010 Vice President of all the DFA Entities.
Vice President Senior Compliance Officer for
Age: 33 Dimensional (since January 2008).
Formerly, Compliance Officer
(February 2006-December 2007) and
Compliance Analyst (August 2004-
January 2006) for Dimensional.
David A. Plecha Since 1993 Vice President of all the DFA Entities,
Vice President DFA Australia Limited, Dimensional
Age: 50 Fund Advisors Ltd. and Dimensional
Fund Advisors Canada ULC.
Allen Pu Since 2011 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 40 (July 2006-2010).
Stephen A. Quance Since 2011 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 37 (October 2006-2010).
Theodore W. Randall Since 2008 Vice President of all the DFA Entities.
Vice President Formerly, Research Associate of
Age: 38 Dimensional (2006-2008). Systems
Developer of Dimensional (2001-2006).
L. Jacobo Rodriguez Since 2005 Vice President of all the DFA Entities.
Vice President
Age: 40
Julie A. Saft Since 2010 Vice President of all the DFA Entities.
Vice President Client Systems Manager for
Age: 52 Dimensional (since July 2008).
Formerly, Senior Manager at Vanguard
(November 1997-July 2008).
David E. Schneider Since 2001 Vice President of all the DFA Entities
Vice President and Dimensional Fund Advisors
Age: 65 Canada ULC. Head of Institutional
Services of Dimensional.
Walid A. Shinnawi Since 2010 Vice President of all the DFA Entities.
Vice President Regional Director for Dimensional
Age: 49 (since March 2006). Formerly, Senior
Director at Moody's KMV (1999-
March 2006).
Bruce A. Simmons Since 2009 Vice President of all the DFA Entities.
Vice President Investment Operations Manager for
Age: 46 Dimensional (since May 2007).
Formerly, Vice President Client and
Fund Reporting at Mellon Financial
(September 2005-May 2007).
Edward R. Simpson Since 2007 Vice President of all the DFA Entities.
Vice President Regional Director of Dimensional
Age: 43 (since December 2002).
Bryce D. Skaff Since 2007 Vice President of all the DFA Entities.
Vice President Formerly, Regional Director of
Age: 36 Dimensional (December 1999 to
January 2007).
55
TERM OF OFFICE/1/
NAME, POSITION WITH THE FUND AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE SERVICE DURING PAST 5 YEARS
---------------------------- ---------------- ---------------------------------------
Andrew D. Smith Since 2011 Vice President of all the DFA Entities.
Vice President Project Manager for Dimensional
Age: 43 (2007-2010). Formerly, Business
Analyst Manager, National Instruments
(2003-2007).
Grady M. Smith Since 2004 Vice President of all the DFA Entities
Vice President and Dimensional Fund Advisors
Age: 55 Canada ULC.
Carl G. Snyder Since 2000 Vice President of all the DFA Entities.
Vice President Formerly, Vice President of DFA
Age: 48 Australia Limited.
Lawrence R. Spieth Since 2004 Vice President of all the DFA Entities.
Vice President
Age: 63
Bradley G. Steiman Since 2004 Vice President of all the DFA Entities
Vice President and Director and Vice President of
Age: 38 Dimensional Fund Advisors Canada
ULC.
Robert C. Trotter Since 2009 Vice President of all the DFA Entities.
Vice President Senior Manager, Technology for
Age: 53 Dimensional (since March 2007).
Formerly, Director of Technology at
AMVESCAP (2002-2007).
Karen E. Umland Since 1997 Vice President of all the DFA Entities,
Vice President DFA Australia Limited, Dimensional
Age: 45 Fund Advisors Ltd., and Dimensional
Fund Advisors Canada ULC.
Brian J. Walsh Since 2009 Vice President of all the DFA Entities.
Vice President Portfolio Manager for Dimensional
Age: 41 (since 2004).
Weston J. Wellington Since 1997 Vice President of all the DFA Entities.
Vice President Formerly, Vice President of DFA
Age: 60 Australia Limited.
Ryan J. Wiley Since 2007 Vice President of all the DFA Entities.
Vice President Senior Trader of Dimensional.
Age: 35 Formerly, Portfolio Manager (2006 to
2007) and Trader (2001 to 2006) for
Dimensional.
Paul E. Wise Since 2005 Vice President of all the DFA Entities.
Vice President Chief Technology Officer for
Age: 56 Dimensional (since 2004).
John S. Wotowicz Since 2010 Vice President of all the DFA Entities.
Vice President Formerly, Managing Director at
Age: 47 Morgan Stanley (1999-2007).
Joseph L. Young Since 2011 Vice President of all the DFA Entities.
Vice President Regional Director for Dimensional
Age: 33 (2005-2010).
1 Each officer holds office for an indefinite term at the pleasure of the
Boards of Trustees/Directors and until his or her successor is elected and
qualified.
56
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Trust uses in voting
proxies relating to securities held in the portfolio is available without
charge, upon request, by calling collect: (512) 306-7400. Information regarding
how the Advisor votes these proxies is available from the EDGAR database on the
SEC's website at http://www.sec.gov and from the Advisor's website at
http://www.dimensional.com and reflects the twelve-month period beginning
July 1st and ending June 30th.
57
NOTICE TO SHAREHOLDERS
(UNAUDITED)
For shareholders that do not have an October 31, 2011 tax year end, this
notice is for informational purposes only. For shareholders with an October 31,
2011 tax year end, please consult your tax advisor as to the pertinence of this
notice. For the fiscal year November 1, 2010 to October 31, 2011, the Portfolio
is designating the following items with regard to distributions paid during the
period. All designations are based on financial information available as of the
date of this annual report and, accordingly are subject to change. For each
item, it is the intention of the Portfolio/Series to designate the maximum
amount permitted under the Internal Revenue Code and the regulations thereunder.
QUALIFYING
FOR
NET CORPORATE
INVESTMENT SHORT-TERM LONG-TERM DIVIDENDS QUALIFYING FOREIGN FOREIGN
DIMENSIONAL INCOME CAPITAL GAIN CAPITAL GAIN TOTAL RECIEVED DIVIDEND TAX SOURCE
INVESTMENT GROUP INC. DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DEDUCTION(1) INCOME(2) CREDIT(3) INCOME(4)
--------------------- ------------- ------------- ------------- ------------- ------------ ---------- --------- ---------
DFA International Value
Portfolio IV............. 100% -- -- 100% 100% 100% 2% 95%
Emerging Markets Portfolio
II....................... 100% -- -- 100% 100% 100% 5% 91%
QUALIFYING QUALIFYING
DIMENSIONAL INTEREST SHORT-TERM
INVESTMENT GROUP INC. INCOME(5) CAPITAL GAIN(6)
--------------------- ---------- ---------------
DFA International Value
Portfolio IV............. 100% 100%
Emerging Markets Portfolio
II....................... 100% 100%
--------
(1)Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of ordinary
income distributions (the total of short-term capital gain and net
investment income distributions).
(2)The percentage in this column represents the amount of "Qualifying Dividend
Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of
2003 and is reflected as a percentage of ordinary income distributions (the
total of short-term capital gain and net investment income distributions).
Please note that these percentages are designated only, refer to your 1099
for actual qualified dividend income.
(3)"Foreign Tax Credit" represents dividends which qualify for the foreign tax
credit pass through and is reflected as a percentage of investment company
taxable income.
(4)"Foreign Source Income" represents the portion of dividends derived from
foreign sources, and is reflected as a percentage of Investment Company
taxable income.
(5)The percentage in this column represents the amount of "Qualifying Interest
Income" as created by The American Jobs Creation Act of 2004. The
information is reflected as a percentage of ordinary income distributions
(the total of short-term capital gain and net investment income
distributions).
(6)The percentage in this column represents the amount of "Qualifying
Short-Term Capital Gain" as created by The American Jobs Creation Act of
2004. The information is reflected as a percentage of ordinary income
distributions (the total of short-term capital gain and net investment
income distributions).
58
[LOGO] Recycled
Recyclable DFA103111-011A
ITEM 2. CODE OF ETHICS.
The Registrant has adopted, as of the end of the period covered by this Form
N-CSR/A (the "Report"), a code of ethics that applies to the Registrant's
principal executive officer and principal financial officer (the "Code of
Business Ethics"). The Registrant has not made any substantive amendments to
the Code of Business Ethics during the period covered by this Report. The
Registrant also has not granted any waiver from any provisions of the Code of
Business Ethics during the period covered by this Report. A copy of the Code of
Business Ethics is filed as an exhibit to this Report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board of Directors has determined that Abbie J. Smith
possesses the technical attributes to qualify as an "audit committee financial
expert" serving on the Registrant's Audit Committee and has designated
Ms. Smith as the "audit committee financial expert." Ms. Smith earned a Ph.D.
in Accounting, and has taught Accounting at the graduate level since 1980.
Ms. Smith's education and career have provided her with an understanding of
generally accepted accounting principles and financial statements; the ability
to assess the general application of such principles in connection with the
accounting for estimates, accruals and reserves; and experience preparing,
analyzing and evaluating financial statements that present a breadth and level
of complexity of issues that can reasonably be expected to be raised by the
Registrant's financial statements. In addition, Ms. Smith has served on the
boards of directors and audit committees of entities other than the Registrant.
Ms. Smith is independent under the standards set forth in Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
Fiscal Year Ended October 31, 2011: $98,497
Fiscal Year Ended October 31, 2010: $93,384
(b) Audit-Related Fees
Feesfor Registrant Fiscal Year Ended October 31, 2011: $18,854
Fiscal Year Ended October 31, 2010: $19,510
For fiscal years ended October 31, 2011 and October 31, 2010,
Audited-Related Fees included fees for services related to limited
procedures performed in connection with the production of the Registrant's
semi-annual financial statements.
Audit-Related Fees required to be approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X
Fiscal Year Ended October 31, 2011: $160,000
Fiscal Year Ended October 31, 2010: $159,000
For the fiscal years ended October 31, 2011 and October 31, 2010,
Audit-Related Fees required to be approved pursuant to paragraph (c)(7)(ii)
of Rule 2-01 of Regulation S-X
included fees for services rendered in connection with the issuance of a
Type II SAS 70 over controls at the Registrant's investment adviser.
(c) Tax Fees
Fees for Registrant Fiscal Year Ended October 31, 2011: $66,632
Fiscal Year Ended October 31, 2010: $55,910
In the fiscal years ended October 31, 2011 and October 31, 2010, Tax Fees
included services in connection with the Registrant's excise tax
calculations and review of the Registrant's applicable tax returns.
There were no Tax Fees required to be approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated
above.
(d) All Other Fees
Fees for Registrant Fiscal Year Ended October 31, 2011: $0
Fiscal Year Ended October 31, 2010: $0
There were no "All Other Fees" required to be approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated
above.
(e)(1)Audit Committee's Pre-Approval Policies and Procedures
Pre-Approval Policies and Procedures
as adopted by the
Audit Committees
of
DFA Investment Dimensions Group Inc.
Dimensional Emerging Markets Value Fund
Dimensional Investment Group Inc.
The DFA Investment Trust Company
(together, the "Funds")
The Sarbanes-Oxley Act of 2002 (the "Act") and the rules (the "Rules")
adopted by the U.S. Securities and Exchange Commission (the "SEC") require
that the Funds' Audit Committees (together, the "Committee") pre-approve all
audit services and non-audit services provided to the Funds by their
independent registered public accounting firm (the "Auditor"). The Act and
the Rules also require that the Committee pre-approve all non-audit services
provided by the Auditor to Dimensional Fund Advisors LP ("Dimensional"), the
Funds' investment advisor, and to affiliates of Dimensional that provide
ongoing services to the Funds (with Dimensional, together the "Service
Affiliates") if the services directly impact the Funds' operations and
financial reporting.
The following policies and procedures govern the ways in which the Committee
will pre-approve audit and various types of non-audit services that the
Auditor provides to the Funds and to Service Affiliates. These policies and
procedures do not apply in the case
of audit services that the Auditor provides to Service Affiliates, nor do
they apply to services that an audit firm other than the Auditor provides to
such entities.
These policies and procedures comply with the requirements for pre-approval,
but also provide mechanisms by which management of the Funds may request and
secure pre-approval of audit and non-audit services in an orderly manner
with minimal disruption to normal business operations. Pre-approval of
non-audit services may be achieved through a combination of the procedures
described in Sections C and D below.
A. General
1. The Committee must pre-approve all audit services and non-audit
services that the Auditor provides to the Funds.
2. The Committee must pre-approve any engagement of the Auditor to
provide non-audit services to any Service Affiliate during the period
of the Auditor's engagement to provide audit services to the Funds,
if the non-audit services to the Service Affiliate directly impact
the Funds' operations and financial reporting.
B. Pre-Approval of Audit Services to the Funds
1. The Committee shall approve the engagement of an independent
registered public accounting firm to certify the Funds' financial
statements for each fiscal year (the "Engagement"). The approval of
the Engagement shall not be delegated to a Designated Member (as that
term is defined in Section D below). In approving the Engagement, the
Committee shall obtain, review and consider sufficient information
concerning the proposed Auditor to enable the Committee to make a
reasonable evaluation of the Auditor's qualifications and
independence. The Committee also shall consider the Auditor's
proposed fees for the Engagement, in light of the scope and nature of
the audit services that the Funds will receive.
2. The Committee shall report to the Boards of Directors/Trustees of the
Funds (together, the "Board") regarding its approval of the
Engagement and of the proposed fees for the Engagement, and the basis
for such approval.
3. Unless otherwise in accordance with applicable law, the Engagement,
in any event, shall require that the Auditor be selected by the vote,
cast in person, of a majority of the members of the Board who are not
"interested persons" of the Funds (as that term is defined in
Section 2(a)(19) of the Investment Company Act of 1940) (the
"Independent Directors").
C. Pre-Approval of Non-Audit Services to the Funds and to Service
Affiliates--by Types of Services
1. The Committee may pre-approve types of non-audit services (including
tax services) to the Funds and their Service Affiliates pursuant to
this Section C.
2. Annually, at such time as the Committee considers the Engagement of
the Auditor, management of the Funds, in consultation with the
Auditor, shall provide to the Committee, for its consideration and
action, the following: (a) a list of those types of non-audit
services, if any, that the Funds may request from the Auditor during
the fiscal year; and (b) a list of those types of non-audit services
directly impacting the Funds' operations and financial reporting that
Service Affiliates may request from the Auditor during the fiscal
year.
3. The lists submitted to the Committee shall describe the types of
non-audit services in reasonable detail (which may include a range of
tax services) and shall include an estimated budget (or budgeted
range) of fees, where possible, and such other information as the
Committee may request. If management and the Auditor desire the
Committee to preapprove the furnishing of a range of tax services,
the Auditor shall provide an estimated range of fees for such tax
services for the consideration and approval by the Committee.
4. The Committee's pre-approval of the types of non-audit services
submitted pursuant to this Section C shall constitute authorization
for management of the Funds to utilize the Auditor for the types of
non-audit services so pre-approved, if needed or desired during the
fiscal year.
5. A list of the types of non-audit services pre-approved by the
Committee pursuant to this Section C will be distributed to
management of the Service Affiliates and the appropriate partners of
the Auditor. Periodically, the Auditor will discuss with the
Committee those non-audit services that have been or are being
provided pursuant to this Section C.
D. Pre-Approval of Non-Audit Services to the Funds and to Service
Affiliates--Project-by-Project Basis
1. The Committee also may pre-approve non-audit services on a
project-by-project basis pursuant to this Section D.
2. Management of the Funds, in consultation with the Auditor, may submit
either to the Committee or to the Designated Member, as provided in
this Section D, for their consideration and action, a pre-approval
request identifying one or more non-audit service projects. The
request so submitted shall describe the project(s) in reasonable
detail and shall include an estimated budget (or budgeted range) of
fees and such other information as the Committee or the Designated
Member, as appropriate, shall request.
3. The Committee, from time to time, shall designate one or more of its
members who are Independent Directors (each a "Designated Member") to
consider, on the Committee's behalf, any non-audit services, whether
to the Funds or to any Service Affiliate, that have not been
pre-approved by the Committee. The Designated Member also shall
review, on the Committee's behalf, any proposed material change in
the nature or extent of any non-audit services previously approved.
The Funds' management, in consultation with the Auditor, shall
explain why such non-audit services or material change in non-audit
services are necessary and appropriate and the anticipated costs
thereof.
4. The Designated Member will review the requested non-audit services or
proposed material change in such services and will either:
(a)pre-approve, pre-approve subject to conditions, or disapprove any
such requested services, or any proposed material change in
services, whether to the Funds or to a Service Affiliate; or
(b)refer such matter to the full Committee for its consideration and
action.
In considering any requested non-audit services or proposed material
change in such services, the Designated Member's authority shall be
limited to approving non-audit services or proposed material changes
that do not exceed $10,000 in value.
5. The Designated Member's pre-approval (or pre-approval subject to
conditions) of the requested non-audit services or proposed material
change in services pursuant to this Section D shall constitute
authorization for the management of the Funds or the Service
Affiliate, as the case may be, to utilize the Auditor for the
non-audit services so pre-approved. Any action by the Designated
Member in approving a requested non-audit service shall be presented
for ratification by the Committee not later than at its next
scheduled meeting. If the Designated Member does not approve the
Auditor providing the requested non-audit service, the matter may be
presented to the full Committee for its consideration and action.
E. Amendment; Annual Review
1. The Committee may amend these procedures from time to time.
2. These procedures shall be reviewed annually by the Committee.
F. Recordkeeping
1. The Funds shall maintain a written record of all decisions made by
the Committee or by a Designated Member pursuant to these procedures,
together with appropriate supporting materials.
2. In connection with the approval of any non-audit service pursuant to
the de minimis exception provided in the Rules, a record shall be
made indicating that each of the conditions for this exception, as
set forth in the Rules, has been satisfied.
3. A copy of these Procedures (and of any amendments to these
Procedures) shall be maintained and preserved permanently in an
easily accessible place. The written records referred to in
paragraphs 1 and 2 of this Section F shall be maintained and
preserved for six years from the end of the fiscal year in which the
actions recorded were taken, for at least the first two years in an
easily accessible location.
(e)(2)The fees disclosed in Items 4(b), 4(c) or 4(d) were approved by the
Registrant's Audit Committee but not pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f)The percentage of hours expended on the principal accountant's
engagement to audit the Registrant's financial statements for the fiscal
year ended October 31, 2011 that were attributed to work performed by
persons other than the principal accountant's full time, permanent
employees was not greater than 50%.
(g)Aggregate Non-Audit Fees
Fiscal Year Ended October 31, 2011: $1,311,294
Fiscal Year Ended October 31, 2010: $ 586,493
(h)The Registrant's Audit Committee has considered whether the provision of
non-audit services that were rendered to the Registrant's investment
adviser, and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to
the Registrant, that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining
the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
This item is not applicable to the Registrant because it is not a listed issuer.
ITEM 6. INVESTMENTS.
(a) The complete schedule of investments for the master fund in which the
Portfolio of the Registrant invests, which provided a summary schedule of
portfolio holdings in a report to stockholders included under Item 1 in lieu of
a complete schedule of investments, is contained in the Form N-CSR filed on
January 9, 2012 (Accession Number 0001193125-12-006210) and is incorporated by
reference into this Form N-CSR/A .
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
This item is not applicable to the Registrant, which is an open-end management
investment company.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
This item is not applicable to the Registrant, which is an open-end management
investment company.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
This item is not applicable to the Registrant, which is an open-end management
investment company.
ITEM 10.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 11.CONTROLS AND PROCEDURES.
(a)Based on their evaluation of the Registrant's disclosure controls and
procedures as of a date within 90 days of the filing date of this
Report, the Registrant's Principal Executive Officer and Principal
Financial Officer believe that the disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940,
as amended) are effectively designed to ensure that information required
to be disclosed by the Registrant in the Report is recorded, processed,
summarized and reported by the filing date, including ensuring that
information required to be disclosed in the Report is accumulated and
communicated to the Registrant's officers that are making certifications
in the Report, as appropriate, to allow timely decisions regarding
required disclosure. The Registrant's management, including the
Principal Executive Officer and the Principal Financial Officer,
recognizes that any set of controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of
achieving the desired control objectives.
(b)There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940, as amended) that occurred during the second fiscal
quarter of the period covered by this Report that have materially
affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 12.EXHIBITS.
(a)(1)Code of Ethics is filed herewith.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 are filed herewith.
(a)(3) This item is not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this Report to
be signed on its behalf by the undersigned, thereunto duly authorized.
Dimensional Investment Group Inc.
By: /s/ David G. Booth
---------------------------------
David G. Booth
Chairman, Director, President and
Co-Chief Executive Officer
Date: March 16, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ David G. Booth
---------------------------------
David G. Booth
Principal Executive Officer
Dimensional Investment Group Inc.
Date: March 16, 2012
By: /s/ David R. Martin
---------------------------------
David R. Martin
Principal Financial Officer
Dimensional Investment Group Inc.
Date: March 16, 2012