Benefits of investing in the Dimensional Emerging Markets Sustainability Trust

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 Value Companies associated with approved emerging markets.

• The investment strategy seeks to take into account certain social and sustainability considerations and the impact issuers of securities may have on the environment.

• 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

Very High

Investor suitability

The Trust may suit those investors seeking exposure to a diversified portfolio of large market capitalisation securities listed on approved emerging markets with the potential for long-term capital growth. In particular, the Trust may suit those investors who seek to have certain environmental and sustainability impact and social considerations taken into account in the investment decision making process of the Trust. Investors in this Trust will be exposed to sharemarket volatility.

About the Fund

The investment objective of the Trust is to provide long-term capital growth by gaining exposure to a diversified portfolio of large market capitalisation securities associated with approved emerging markets, with increased emphasis on higher expected return securities, and adjusted to take into account certain environmental and sustainability impact and social considerations. 

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 Emerging Markets Index (net div.). 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.

How we invest your money

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.

Ordinarily, the Trust will invest in a diversified portfolio of large market capitalisation securities associated with approved emerging markets.

Dimensional generally defines large market capitalisation securities as those falling into the largest 85-90% of securities by market capitalisation in each eligible country (or region in the case of Europe). Eligible securities for the strategy include securities of companies and Real Estate Investment Trusts (REITs) and REIT-like entities listed on approved emerging markets.

Dimensional will determine at its discretion which emerging market countries are authorised for investment, and whether and when to invest in those authorised countries, depending on a number of factors. Please refer to Dimensional's website at www.dimensional.com.au for the latest list of approved emerging markets.

Within the Trust's eligible universe, 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.

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).

Strategic asset allocation

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

• Emerging markets securities 100%