DFA Intermediate Government Fixed Income Portfolio Institutional Class (DFIGX)

Overview

This investment fund focuses on securing capital by investing primarily in high-quality, low-risk financial instruments backed by the U.S. government and its agencies. With a strategic emphasis on obligations that have maturities ranging from five to fifteen years from the date of settlement, the fund seeks to provide investors with a stable and reliable return. The investment strategy is conservative, targeting non-callable obligations that are either issued or guaranteed by the U.S. government and its agencies, thus ensuring a high degree of safety and liquidity for its investors. Additionally, the fund diversifies its portfolio by including AAA-rated, dollar-denominated obligations of foreign governments, obligations of supranational organizations, and engaging in futures contracts on U.S. Treasury securities, thereby mitigating risks and aiming for consistent performance.

Products and Services

• U.S. Government and Agency Obligations: This core investment focuses on non-callable bonds and securities issued or guaranteed by the U.S. government and its agencies. Given their low-risk nature, these obligations provide a foundation of stability and security within the fund's portfolio, appealing to conservative investors seeking reliable returns.
• AAA-Rated Foreign Government Obligations: Expanding its diversification strategy, the fund also invests in top-tier, AAA-rated, dollar-denominated obligations issued by foreign governments. These investments are selected based on their high credit quality, contributing to the fund's goal of minimizing risk while capturing potential returns from global markets.
• Supranational Obligations: The fund includes obligations of supranational organizations in its investment mix. These are entities formed by two or more central governments with the purpose of promoting economic development or other cooperative projects. Such obligations often carry low risk and are considered a safe investment, similar to the fund's U.S. government and agency obligations.
• Futures Contracts on U.S. Treasury Securities: To manage exposure to interest rate changes and enhance potential returns, the fund engages in futures contracts on U.S. Treasury securities. This allows the fund to speculate on the direction of U.S. interest rates and adjust its portfolio's sensitivity to those changes, offering an additional layer of strategy to its conservative investment approach.