Dimensional launches NZ PIE to investing sustainable Australian equities

Bhanu Singh, Dimensional's Australian chief executive and head of Asia Pacific portfolio management, says the NZ PIE will be using the same methodology in building a portfolio as the existing Australian Sustainability Trust, which currently has about A$800 million invested.

It will, however, provide local investors with the tax benefits of the PIE structure (the highest tax rate on PIE returns is 28%) – it is partnering with registered manager and issuer of funds FundRock New Zealand to offer the new PIE.

Essentially, Dimensional rank the stocks within the S&P/ASX 300 Index on the basis of each company's carbon emissions and then actively manages that part of the equation.

The process also takes account of potential emissions as well – for example, Chevron and Shell currently have relatively low emissions but both own a lot of high-emitting assets still in the ground.