Dimensional Two-Year Sustainability 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-term, Investment Grade domestic and global fixed interest securities.|
|INVESTMENT PROFILE||The Trust aims to maximise the return of a broadly diversified portfolio of fixed interest securities.|
|NO. OF HOLDINGS||Around 150|
|FEES||0.25% p.a. of the net asset value of the Trust|
Benefits of investing in the Dimensional Two-Year Sustainability Fixed Interest Trust - AUD Class Units
An investment in the Trust offers investors a range of key benefits:
The Trust may suit those investors seeking a liquid, low risk, diversified portfolio that provides exposure to the returns of short-term global fixed interest securities.
About the Fund
Within the risk constraints of investing in eligible short-term, Investment Grade securities, the objective of the Trust is to maximise the return of a broadly diversified portfolio of domestic and global fixed interest securities. 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.
The Trust seeks to maximise the return of a broadly diversified portfolio of Investment Grade, domestic and global fixed interest securities. Ordinarily, the Trust will invest in securities with an overall maximum weighted average maturity of two years and, for any individual security, a maximum maturity of up to three years from the date of settlement. 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).
How we invest your money
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.
Ordinarily the Trust invests in a diverse portfolio of Investment Grade corporate and government, domestic and global fixed interest securities, with an overall maximum weighted average maturity of two years and, for any individual security, a maximum maturity of three years from the date of settlement. Dimensional generally changes the portfolio's exposure to term premiums and credit premiums in response to changes in security prices.
Subject to these and other portfolio constraints, Dimensional seeks to target those eligible markets, and securities within those markets, with higher expected returns considering the dimensions described above. Dimensional may consider other factors when determining term and credit exposures.
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.