How we construct portfolios

The portfolios are constructed to provide diversity. The funds themselves contain thousands of investments but as each fund concentrates on a different sector, this produces sector diversity as well as investment diversity.

Active fund managers try to pick winners, are expensive and inconsistent. Passive fund managers simply spread their funds across the whole market. Smart Passive fund managers also spread their funds across the whole market but with an overweighting in three factors which academic research has shown as producing better long term results: smaller companies, value for money and currently profitable.
We use Smart Beta fund managers because their fees are low, their results are good and their methodology is understandable.

We predominantly use Dimensional funds as they are a huge, worldwide provider, with scores of low cost funds, good long term performance records and a reputation of satisfied clients and selected advisers worldwide. They are perhaps the leading Smart Passive fund management group in the world. They are US based but the funds we are recommending are Australian based (and therefore subject to Australian law) because there are simply not the same range of similar, NZ based funds – we are too small a market.

For some of the sustainable funds we also use iShares and Vanguard for specific funds. Both are among the biggest investment fund managers globally and offer low cost, passive funds. 

Castle Trust Short Term Portfolio

Dimensional Two-Year Sustainability Fixed Int. Trust NZD Class

Castle Trust Medium Term Portfolio

Dimensional Global Core Equity Trust NZD Hedged

Dimensional Five-Year Diversified Fixed Int. Trust NZD Class

Dimensional Global Bond Trust NZD Class

Castle Trust Long Term Portfolio

Dimensional Global Core Equity Trust Unhedged

Dimensional Global Small Company Trust

Dimensional Global Value Trust

Dimensional Emerging Markets Value Trust

Dimensional Global Real Estate Trust Unhedged

Dimensional Australia Core Equity Trust

Castle Trust Sustainable Medium Term Portfolio

Dimensional Global Sustainability Trust NZD Hedged Class

Dimensional Global Bond Sustainability Trust NZD Class

Dimensional Five-Year Diversified Fixed Int. Trust NZD Class

Castle Trust Sustainable Long Term Portfolio

Dimensional Global Sustainability Trust Unhedged

Vanguard Ethically Conscious International Shares Index Fund

iShares MSCI Global Impact ETF

iShares Emerging Markets SRI ETF

Dimensional Global Real Estate Trust Unhedged

Dimensional Australian Sustainability Trust

We use the Consilium Wrap platform to invest in these funds. You have online access to view all of your investments at any time. The wrap account makes it easy to keep track of your investments, documents deposits, withdrawals, dividends, taxes and summarizes them in easy to access reports.

To see what this means for you, book a free 15 minute phone call now