Dimensional Five-Yr Diversified Fixed Interest Trust - AUD Class Units
About this Fund
|FUND MANAGER||DFA Australia|
|ASSET CLASS||FIXED INTEREST|
|INVESTMENT STYLE||The Trust invests in eligible short to intermediate-term, high credit quality instruments.|
|INVESTMENT PROFILE||The investment objective of the Trust is to maximise the return of a broadly diversified portfolio of domestic and global fixed interest and money market securities.|
|NO. OF HOLDINGS||100+|
|FEES||0.28% p.a. of the NAV of the Trust|
Benefits of investing in the Dimensional Five-Yr Diversified Fixed Interest Trust - AUD Class Units
An investment in the Trust offers investors a range of key benefits:
Low to medium
The likelihood of the capital value of your investment going down over the short term is relatively low compared to funds investing in higher-risk assets such as equities.
The Trust may suit those investors seeking a liquid, low risk, diversified portfolio that provides exposure to the returns of short to intermediate-term domestic and global fixed interest securities.
Fund overview and significant features
The Trust seeks to maximise the return of a broadly diversified portfolio of high credit quality domestic and global fixed interest and money market securities. Ordinarily, the Trust will invest in securities with a maximum maturity of five years from the date of settlement (see section 5 of the PDS for details).
The Trust aims to hedge all foreign currency exposure to the Australian dollar (for the AUD class units) or the New Zealand dollar (for the NZD class units) (as set out in 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 cash index, reference may be made to the Bloomberg AusBond Bank Bill Index (AUD class units) or the Bloomberg NZBond Bank Bill Index (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 fixed interest portfolios are based on dimensions of expected return that have been identified by academic research.
Relative performance in fixed interest is largely driven by two dimensions: bond maturity and credit quality. Bonds that mature further in the future are subject to higher risk of unexpected changes in interest rates. Bonds with lower credit quality are subject to higher risk of default. Extending bond maturities and reducing credit quality increases potential returns.
Two classes of units are offered to all investors: AUD class units that are denominated in Australian dollars and NZD class units that are denominated in New Zealand dollars. The Trust aims to hedge all foreign currency exposure to the Australian dollar (for the AUD class units) or New Zealand dollar (for the NZD class units). However, Dimensional may not adjust the hedge for slight changes in foreign currency exposure if Dimensional deems that it is more cost-efficient not to do so.
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).
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.
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 invests in a diverse portfolio of high credit quality, domestic and global fixed interest and money market securities, with a maximum maturity of five years from the date of settlement.
In making purchase decisions, if the anticipated term premium is greater for longer-term securities in the eligible maturity range, Dimensional will generally seek to focus investment in that longer-term area, otherwise, Dimensional will generally seek to focus investment in short to intermediate-term securities.
Strategic asset allocation
Under normal circumstances, the Trust will invest in accordance with the following target allocation range*:
*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.