What can the Dimensional Five-Year Diversified Fixed Interest PIE Fund actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| International fixed interest | 100% | 90% | 100% |
| Cash and cash equivalents | — | 0% | 10% |
Mandate flexibility (sum of max − min across all ranges): 20%. Narrow range — index-tracking style with limited drift.
Responsible-investment approach
The Sustainability Funds take into account non-financial sustainability considerations including a Portfolio Carbon Footprint Reduction Goal and company exclusions for involvement in coal, factory farming, palm oil, controversial weapons, nuclear weapons, tobacco, child labour, alcohol, gambling, adult entertainment, personal firearms, and private prisons. Companies are ranked on sustainability factors (carbon intensity, potential emissions from reserves, land use and biodiversity, toxic spills and releases, operational waste, and water management) and excluded, underweighted, overweighted or neutral weighted accordingly.
Derivatives policy
The Funds are permitted to invest in derivative instruments including futures and currency hedging instruments. For the Sustainability Funds, derivatives are generally only used on a temporary basis for managing large cashflows and are not included when calculating progress against the Portfolio Carbon Footprint Reduction Goal.