DFA Five-Year Global Fixed Income Portfolio (DFGBX)

Overview

This fund is designed for investors seeking a diversified portfolio of debt securities with a maximum maturity of five years. By investing in a blend of U.S. and foreign debt obligations, the fund aims to provide a balance of stability and return. Its focus on obligations issued or guaranteed by the U.S. and foreign governments, their agencies and instrumentalities, offers a base of secure investments. Moreover, the inclusion of corporate debt obligations, bank obligations, and other money market instruments allows for the potential of higher yields within the confines of a generally conservative investment strategy. The fund’s global reach, including investments in securities denominated in U.S. dollars but not trading within the United States, as well as obligations of supranational organizations, provides a diversified exposure to various debt markets around the world.

Products and Services

• Government Obligations:

  The fund invests in debt securities issued or guaranteed by the U.S. and foreign governments, along with their agencies and instrumentalities. These investments offer a foundation of stability and lower risk, making them an essential component of the fund's portfolio.

• Corporate Debt Obligations:

  Corporate bonds and debt instruments form a part of the portfolio, providing an opportunity for higher yields compared to government securities. These investments are selected based on a rigorous assessment of the issuing corporations' creditworthiness and potential for return.

• Bank Obligations and Commercial Paper:

  Short-term debt securities issued by banks and corporations, known as commercial paper, offer liquidity and income. These instruments are typically used for financing immediate operational needs and are considered relatively low risk.

• Repurchase Agreements:

  The fund invests in repurchase agreements, which are short-term borrowing agreements typically involving government securities. These agreements add liquidity to the fund while maintaining a high level of security.

• Money Market Funds:

  Investments in money market funds provide additional liquidity and income. These funds invest in a variety of short-term debt instruments and are a key tool for managing the cash portion of the portfolio efficiently.

• Securities of Domestic or Foreign Issuers Denominated in U.S. Dollars:

  This category includes debt securities issued by both domestic and foreign companies that are denominated in U.S. dollars but do not trade within the United States. These securities provide an avenue for diversification and access to global credit markets.

• Obligations of Supranational Organizations:

  The fund invests in debt instruments issued by supranational organizations, which are formed by two or more central governments with the purpose of promoting economic development. These obligations offer a mix of security and the potential for return, contributing to the fund's overall diversification.