Benefits of investing in the Dimensional Global Core Equity Trust - Unhedged Class Units

An investment in the Trust offers investors a range of key benefits:

• The investment strategy is grounded in rigorous academic research.
  
• The investment strategy will provide continuous exposure to a professionally managed portfolio of securities associated with approved developed markets (excluding Australia).
  
• The investment strategy is diversified to manage risk. Diversification also provides flexibility, which in turn allows for more efficient implementation of the portfolio.
  
• Dimensional seeks to keep costs low by paying close attention to costs, including both management and implementation costs.
  
• Direct investors receive regular investment statements and an annual tax statement to keep you up-to-date on your investment.
  
• For the taxable investor, Dimensional seeks to maximise after-tax returns. It does this by managing the Trust in a way that aims to defer the realisation of net capital gains where possible and to manage dividend income.
  

Risk level

High

The likelihood of the capital value of your investment going down over the short term is relatively high compared to funds investing in lower-risk assets such as fixed interest assets or cash.

Investor suitability

The Trust may suit those investors seeking exposure to a diversified portfolio of securities listed on global developed markets (excluding Australia) with the potential for long-term capital growth. Investors in this Trust will be exposed to share market volatility.

Fund overview and significant features

The Trust seeks to provide long-term capital growth by gaining exposure to a diversified portfolio of securities associated with approved developed markets (excluding Australia). The portfolio emphasises investment in securities with a higher expected return (see section 5 of the PDS for details).

The Trust is not managed with the objective of achieving a particular return relative to a benchmark index. However, to compare the performance of the Trust with a broad measure of market performance, reference may be made to the MSCI World ex Australia Index (net div.), (for unhedged class units), net div., hedged to AUD (for AUD class units), or net div., hedged to NZD (for NZD class units). Investors should note that the index is referred to for comparison purposes only. The index is not intended to represent the current or targeted asset allocation of the Trust. The performance of the Trust may differ significantly from the index.

Description of Trust

Dimensional's equity portfolios are based on dimensions of expected returns that have been identified by academic research:

1. The overall market - stocks have higher expected returns than bonds.
   
2. Company size - small company stocks have higher expected returns than large company stocks.
   
3. Relative price - low relative price or value' stocks have higher expected returns than high relative price stocks.
   
4. Profitability - stocks with higher profitability have higher expected returns than stocks with lower profitability.
   

Three classes of units are offered to all investors: unhedged class units, AUD hedged class units that are denominated in Australian dollars and NZD hedged class units that are denominated in New Zealand dollars. For the unhedged class units, foreign currency exposure is unhedged. For the AUD and NZD hedged class units, the Trust mitigates currency risk by hedging most major foreign currency exposures to the Australian dollar (for the AUD class units) or the New Zealand dollar (for the NZD class units). Other foreign currency exposure is either partially hedged using one of the major currencies that is in Dimensional's view correlated with the relevant currency (as a proxy), or not hedged, depending on what Dimensional deems to be cost-efficient.

The Trust may lend securities for the purpose of generating additional income. The Trust may gain some or all of its market exposure by investing in other funds managed by Dimensional or its affiliates (including other Dimensional Wholesale Trusts).

Other members of the Dimensional Group may on occasion undertake the day-to-day trading of the securities, and make investment decisions under delegated authority from Dimensional.

About Dimensional

Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981.

Guided by a strong belief in markets, Dimensional offers strategies that focus on the drivers of expected returns. The firm applies a dynamic implementation process that integrates advanced research, methodical portfolio design, and careful execution, while balancing risks, costs, and other tradeoffs that may impact performance. This approach is applied across a full suite of investment strategies to help meet the needs of investors worldwide. 

How we invest your money

Ordinarily, the Trust will invest in a diversified market-wide portfolio of securities associated with approved developed markets (excluding Australia). Eligible securities for the strategy include securities of companies and Real Estate Investment Trusts (REITs) and REIT-like entities listed on approved developed markets (excluding Australia). The portfolio emphasises investment in securities with a higher expected return considering the dimensions described above.

In addition, Dimensional may also take into account other factors when determining a security's weight in the portfolio.

Strategic asset allocation

Under normal circumstances, the Trust will invest in accordance with the following target allocation range*:

• International shares: 100%

*The Trust is expected to be fully invested. A portion of the portfolio may be allocated to cash for liquidity purposes. Please refer to the Additional Information Guide for further information.