Dimensional Fund Advisors ESG and Responsible Investing

March 8, 2017

Jed Fogdall, Co-Head of Portfolio Management and Vice President

This information is provided for institutional investors and registered investment advisors and is not intended for public use. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Dimensional Fund Advisors LP receives compensation in the form of investment management fees from clients who invest in Dimensional funds recommended or offered by intermediaries such as Concord Advisory Group.

#17625-1011

Countries and names as of December 31, 2016 and are of the representative account for each respective composite. Holdings are subject to change.

Composite descriptions and composite compliant presentations available upon request. See Appendix.

Socially Screened Strategies and Sustainability Strategies Using an integrated approach to add value across all aspects of the investment process

2

#17868-1011

The Evolution of Dimensional’s Responsible Investment Offering

3

#46613-0516

• A growing number of people are looking

for ways to align their investment choices

with their personal philosophies.

• These personal philosophies vary widely,

but frequently reflect views on healthcare

matters, the military, human and/or labor

rights, or the environment.

• Dimensional has a long-standing history

of applying social screens for clients in

their separate accounts.

• Dimensional has designed strategies to

meet the growing demand for socially

responsible and sustainability investments.

Separate Accounts with Social Screens

1980s 2006 2007 2008 2013 2014 2016

Emerging Markets All Cap Core Socially Responsible Equity Strategy

US All Cap Core Socially Responsible Equity Strategy

US and World ex US All Cap Core Sustainability Equity Strategies

World ex US All Cap Core Socially Responsible Equity Strategy

Social Screens applied to separately managed fixed income account

US Core Socially Responsible Fixed Income Strategy

World ex US All Cap Core Socially Responsible Equity Strategy

SC: LC39

Dimensional’s Approach to Sustainability and Socially Responsible Investing

4 There is no guarantee strategies will be successful. Environmental and social screens may limit opportunities for the strategy.

#46613-0615

Our goal is to provide strategies that help clients pursue their financial goals in

alignment with their mission without sacrificing sound investment principles.

• Apply Dimensional’s core equity methodology that combines known sources of higher

expected returns with broad diversification

Develop a meaningful way to take into account client-driven concerns.

• In social strategies, engage leading firms and experts to provide top-tier screening

criteria and screening implementation.

• In sustainability strategies:

Systematically evaluate company sustainability metrics across all major industries E

Emphasize investment in companies acting in more environmentally sound ways than their

industry counterparts

Exclude or underweight companies based on other key environmental and social sustainability

considerations

Focus on the tradeoffs that matter for performance in implementation,

including minimizing unnecessary turnover and trading costs.

Marketwide Strategies Offer an Integrated Approach

5

• Dimensional’s marketwide

strategies are designed to

emphasize securities with

higher expected returns

while minimizing excess

turnover, helping reduce

overall expenses.

• Marketwide strategies use

security weighting to increase

emphasis on higher expected

return securities

– Lower relative price

– Higher profitability

– Lower market cap

PORTFOLIO CONSTRUCTION: SECURITY WEIGHTING

For illustrative purposes only.

1. Profitability is measured as operating income before depreciation and amortization minus interest expense scaled by book.

#47660-0815

HIGH

LOW

LOW

PROFITABILITY1

SIZ

E

LA

RG

E

SM

ALL

HIGH

RELATIVE PRICE

SC: EC38

Social Screens

6

Social Core Equity Strategies

• Dimensional employs an

independent social screen

vendor to identify stocks for

exclusion on social issues.

• The social screen research

examines the business

activities of companies

across several areas.

SOCIAL SCREENS INCLUDE:

1. Social screen for US All Cap Core Socially Responsible Equity Strategy and World ex US All Cap Core Socially Responsible Equity Strategy. Social screen unavailable for Emerging Markets All Cap Core Socially Responsible Equity

Strategy due to lack of information and reporting requirements.

#46613-0615

Abortions, Abortive Agents, and Contraceptives

Adult Entertainment

Child Labor1

Gambling

Landmines and Cluster Bombs

Republic of the Sudan

Stem Cell Research

Tobacco or Alcohol

Weapons

Sustainability Considerations

7

Sustainability Core Strategies

Scoring variables are of the representative accounts for US All Cap Core Sustainability Equity and World ex US All Cap Core Sustainability Equity composites. Composite descriptions and composite compliant presentations available upon

request. See Appendix.

1. Greenhouse Gas Emissions Intensity represents a company’s most recently reported or estimated Scope 1 (direct) + Scope 2 (indirect) greenhouse gas emissions normalized by sales in USD (metric tons per USD million sales).

Greenhouse gases included are the six gases mandated by the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). This

methodology is subject to change with data developments or other findings or events.

• Emphasizes environmental

sustainability at both the

strategy and industry level

• Applies a sustainability

scoring system within each

industry to emphasize

investment in companies with

higher sustainability scores

and minimize or exclude

investment in companies with

lower scores

• Focuses on reducing

emissions exposure on an

absolute and industry-

adjusted basis

#51189-0316

SUSTAINABILITY SCORING VARIABLES (INDUSTRY LEVEL)

Greenhouse Gas Emissions Intensity1 85% of total score

Land Use and Biodiversity

15% of total score

Toxic Spills and Releases

Operational Waste

Water Management

EMISSIONS VARIABLES (STRATEGY LEVEL)

Greenhouse Gas Emissions Intensity1

Exclude or underweight top contributors to greenhouse gas emissions

Potential Emissions from Reserves

Exclude or underweight companies based on potential emissions from reserves

SC: LC41

Sustainability Considerations

8

Sustainability Core Strategies

1. Companies may be excluded for other factors believed to be important to investors interested in sustainability.

• Companies connected to a select list of other environmental and social sustainability issues may be excluded

#51189-0316

OTHER ENVIRONMENTAL & SOCIAL SUSTAINABILITY VARIABLES (STRATEGY LEVEL)

Factory Farming Companies cited for rearing livestock using particularly intensive methods may be excluded

Cluster Munitions Manufacturers and certain associated entities may be excluded

Tobacco Companies with meaningful revenue related to tobacco products may be excluded

Child Labor Companies cited for child labor practices may be excluded

Other Considerations1

SC: LC42

Fossil Fuel Smart

9

Emissions exposure as December 31, 2016

GREENHOUSE GAS EMISSIONS INTENSITY

POTENTIAL EMISSIONS FROM RESERVES

Representative account. Composite descriptions and composite compliant presentations available upon request. See Appendix..

Certain information incorporated herein has been provided by MSCI ESG Research Inc. (“ESG”). Although Dimensional Fund Advisors’ information providers, including without limitation, ESG and its affiliates (the “ESG Parties”), obtain

information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy, and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind,

and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection

with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential, or any other damages (including lost profits) even if notified

of the possibility of such damages. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes.

#51189-0416

218

40

0

50

100

150

200

250

Russell 3000 Index US All Cap Core Sustainability Equity Strategy

To

ns

CO

2e

/mill

ion

sale

s

81.8% reduction in emissions

231

0 0

50

100

150

200

250

Russell 3000 Index US All Cap Core Sustainability Equity Strategy

Me

gato

ns

CO

2e

100.0% reduction in potential emissions from reserves

As of August 19, 2016.

Corporate Governance Overview

10

Seek to impact governance

through a variety of means

• Proxy voting

• Listening to portfolio companies

• Internal projects/research

• Industry surveys/events

Corporate Governance

at Dimensional

• Corporate Governance Committee

• Meets quarterly

• Recommend changes to policy

– Oversees Corporate Governance

Group

– Considers complicated cases and

case studies

• Corporate Governance Group

• Implements policies and

oversees day-to-day operations

Dimensional philosophy: Stronger governance practices will be reflected

in higher stock prices (lower discount rates and higher cash flows)

#54471-0816

Appendix

Presenter’s Biography

Jed Fogdall Co-Head of Portfolio Management and Vice President

Jed Fogdall is co-head of Portfolio Management and a member of the Investment Committee and Investment Research Committee at

Dimensional. Together with Joseph Chi, Jed oversees Dimensional's global Portfolio Management team, including US equity, non-US equity, and

fixed income strategies. He is involved in the design and marketing of new products and strategies, speaking frequently to current and prospective

clients on many investment-related topics. Jed joined Dimensional in 2004 as a portfolio manager on the International Equity team.

Jed earned his MBA from the Anderson School of Management at the University of California, Los Angeles, in 2003 with a concentration in finance.

He graduated from Purdue University in 1997 with a BS in electrical engineering.

12

Griffin Watkins, CFA Regional Director and Vice President, Consultant Relations

Griffin Watkins, a vice president and regional director, joined Dimensional's Institutional Services team in 2008 and promotes the firm's investment

philosophy, investment strategies, and processes to institutional consultants and updates them with relevant firm details on a regular basis.

Griffin holds a BBA with concentration in finance from the University of Texas McCombs School of Business. He is a CFA Charterholder; is Series 7

and 63 licensed; and is a member of the CFA Society of Austin.

Disclosures

Dimensional Fund Advisors claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions of Dimensional Fund Advisors and/or a presentation that complies with the GIPS standards, write to GIPS@dimensional.com. Dimensional Fund Advisors LP is an investment advisor registered with the U.S. Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940, as amended. The firm includes all of Dimensional's global offices and subsidiaries that offer discretionary investment advisory services. Registration does not imply a certain level of skill or training. A list of composite descriptions and policies for valuing portfolios, calculating performance, and preparing compliant presentations, is available upon request. Risks All investing is subject to risks, including market fluctuations and possible loss of the principal amount invested. Diversification does not eliminate the risk of market loss. There is no guarantee the strategies will be successful. Investments in stocks and bonds are subject to risk of economic, political, and issuer-specific events that cause the value of these securities to fluctuate. International investing involves special risks such as those associated with currency fluctuation, country/regional specific issues, political instability, and less liquid and/or regulated securities markets. Investing in emerging markets may accentuate these risks and foreign investors are often limited in their ability to invest in and withdraw assets from these markets. Small capitalization securities are often less liquid, more vulnerable to business and economic developments, and subject to greater volatility than larger capitalization securities. Sector-specific investments tend to be more volatile and are subject to the risks associated with their specific sector/industry. Fixed income securities are subject to interest rate risk—the possibility that bond prices generally will fall because of rising interest rates. Fixed income investments are also subject to credit risk—the possibility that the security’s issuer will fail to pay interest or principal or that the perception of the issuer’s ability to make such payments will cause the value of the security to decline. In addition, fixed income investing involves various other risks, including liquidity and prepayment risk. Social issue screens may limit investment opportunities available to the strategy.

13