Strategy. To achieve the Portfolios investment objective, Dimensional Fund Advisors LP (Dimensional or Subadviser), subadviser to the Portfolio, implements an integrated investment approach that combines research, portfolio design, portfolio management, and trading functions. As further described below, the Portfolios design emphasizes long-term drivers of expected returns identified by the Subadvisers research, while balancing risk through broad diversification across companies and sectors. Dimensionals portfolio management and trading processes further balance those long-term drivers of expected returns with shorter-term drivers of expected returns and trading costs. Dimensional invests under normal market conditions at least 80% of the Portfolios net assets in securities of small companies. The Portfolio primarily invests in equity securities of non-U.S. small companies in developed markets. Dimensional defines a company … Show more… To achieve the Portfolios investment objective, Dimensional Fund Advisors LP (Dimensional or Subadviser), subadviser to the Portfolio, implements an integrated investment approach that combines research, portfolio design, portfolio management, and trading functions. As further described below, the Portfolios design emphasizes long-term drivers of expected returns identified by the Subadvisers research, while balancing risk through broad diversification across companies and sectors. Dimensionals portfolio management and trading processes further balance those long-term drivers of expected returns with shorter-term drivers of expected returns and trading costs. Dimensional invests under normal market conditions at least 80% of the Portfolios net assets in securities of small companies. The Portfolio primarily invests in equity securities of non-U.S. small companies in developed markets. Dimensional defines a company as small on a country- or region-specific basis, considering a companys market capitalization relative to the size of other companies in the same country or region. In selecting equity investments, Dimensional first ranks eligible companies listed on selected exchanges based on the companies market capitalizations. Dimensional then determines the universe of eligible stocks by defining the maximum market capitalization of a small company in that country or region. This threshold will vary by country or region and may change due to market conditions. Based on market capitalization data as of December 31, 2024, the maximum market capitalization of companies eligible for purchase by the Portfolio would be approximately $8.8 billion. The Portfolio may invest in the stocks of small companies associated with Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom (collectively, the Approved Markets). Dimensional will determine whether and when to invest in countries that have been authorized as Approved Markets, depending on a number of factors, including, but not limited to, asset growth in the Portfolio, constraints imposed within Approved Markets and other characteristics of each countrys markets. The Investment Committee of the Subadviser also may designate other countries as Approved Markets for investment in the future or it may remove countries from the list of Approved Markets. In addition, the Portfolio may continue to hold investments in countries that are not currently designated as Approved Markets, but had been authorized for investment in the past, and may reinvest distributions received in connection with such existing investments in such previously Approved Markets. The Portfolio invests in securities of Approved Markets listed on securities exchanges or traded on the over-the-counter markets. These exchanges or over-the-counter markets may be either within or outside the issuers domicile country. For example, the securities may be listed or traded in the form of European Depositary Receipts, Global Depositary Receipts, American Depositary Receipts, or other types of depositary receipts (including non-voting depositary receipts) or may be listed on securities exchanges in more than one country. Stock Selection Market capitalization weighting is used in determining individual security weights and, where applicable, country or region weights. A companys market capitalization is the number of its shares outstanding times its price per share. Under a market capitalization weighted approach, companies with higher market capitalizations generally represent a larger proportion of the Portfolio than companies with relatively lower market capitalizations. The Portfolio may emphasize certain stocks, including smaller capitalization companies, lower relative price stocks, and/or higher profitability stocks as compared to their representation in the countries and/or regions in which the Portfolio is authorized to invest. An equity issuer is considered to have a low relative price (i.e., a value stock) primarily because it has a low price in relation to its book value. In assessing relative price, Dimensional may consider additional factors such as price to cash flow or price to earnings ratios. An equity issuer is considered to have high profitability because it has high earnings or profits from operations in relation to its book value or assets. The criteria Dimensional uses for assessing relative price and profitability are subject to change from time to time. Dimensional may also increase or reduce the Portfolios exposure to an eligible company, or exclude a company, based on shorter-term considerations, such as a companys price momentum, Dimensionals assessment of the likelihood of short-run reversals (general tendency for stocks that have recently outperformed their peers to underperform in the short run and vice versa), and other investment characteristics. In assessing a companys investment characteristics, Dimensional considers ratios such as recent changes in assets divided by total assets. The criteria Dimensional uses for assessing a companys investment characteristics are subject to change from time to time. Show less