rockwealth portfolio update
In the coming weeks we are expecting some adjustments to our core investment portfolios managed by Betafolio. These adjustments are not being driven by market movements, rather ensuring that our Evidence based philosophy continues to be monitored and implemented in portfolios efficiently. It is important to remember, our key ethos has not changed:
- To construct our client portfolios based on extensive academic evidence of what drives returns in the capital markets.
- Include a preference for equities with low relative prices (value stocks) and smaller companies, which, as evidence suggests, should outperform the global market over the long term.
Please have a look at our
sensible investing guide in the following link for a reminder of how this works.
The following funds are being added to portfolios in the coming weeks and are designed to further enhance the implementation of the evidence-based approach.
Dimensional Emerging Markets Sustainability Core Equity Fund
The objective of this fund is to invest globally across all eligible emerging markets and has a tilt toward securities with smaller market capitalisations, lower relative prices (value), and higher profitability while integrating sustainability considerations.
GSI Global Sustainable Value Fund
The GSI Global Sustainable Value Fund invests in securities from all developed markets and tends to emphasise securities with smaller market capitalisations, lower relative prices (value), and higher profitability than a market-weighted index while integrating a sustainability framework.
Northern Trust World Small Cap ESG Low Carbon Index Fund
Northern Trust might be a new name to you; however, it was founded in Chicago in 1889 and manages US$1,249 billion in assets globally across various asset classes and styles. It is a well-established name in the global investment markets, with over 45 years of index equity management experience.The investment objective of the NT World Small Cap ESG Low Carbon strategy is to closely match the risk and return characteristics of the MSCI World Small Cap Custom ESG Low Carbon Index while maintaining a low tracking error to the MSCI World Small Cap Index.
Dimensional Global Sustainability Short Fixed Income Fund
The Global Sustainability Short Fixed Income Fund integrates key sustainability considerations within a market-driven approach using current market prices to target higher expected returns in global government and credit securities with a maximum maturity of five years.Sustainability screens are applied to corporate bonds, supranational organisations, and non-sovereign governmental agencies. This fund employs a currency hedging strategy to minimise the impact of negative exchange rate movements in the portfolio.
Betafolio Rebrand
At the same time, in the coming months you may notice that our investment manager partner (Betafolio) are changing their brand name to Timeline. This is simply a change of Brand name but may result in some changes to investment portfolio names currently including “Betafolio” in its name.
