DFA Global Core Plus Fixed Income Portfolio Institutional Class (DGCFX)

Overview

The Portfolio is designed to cater to investors seeking diversified exposure in both U.S. and foreign fixed income securities. Its investment strategy encompasses a wide range of debt instruments, aiming to achieve its investment objective through a carefully selected mix of obligations. These include government and corporate debts, mortgage-backed securities, commercial paper, and more, sourced from both domestic and international markets. By maintaining a diverse portfolio, the fund intends to offer a balanced mix of stability, income, and growth potential to its investors.

Products and Services

• Government Obligations:

  Investments in securities issued or guaranteed by U.S. and foreign governments, providing a stable income stream with low default risk. These include treasury bills, notes, bonds, and other governmental securities, offering various maturities and yield options to suit investor needs.

• Mortgage-Backed Securities:

  Consists of investments in pools of mortgages guaranteed by government agencies or instrumentalities, offering potentially higher yields compared to government obligations due to the added credit risk.

• Corporate Debt Obligations:

  Investments in bonds issued by corporations, providing higher yields in exchange for higher risk compared to government securities. These can range from high-grade bonds of financially stable companies to high-yield bonds of companies with lower credit ratings.

• Bank Obligations:

  Includes certificates of deposit and other debt instruments issued by banks, offering fixed interest rates and varied terms to investors seeking reliable income sources.

• Commercial Paper:

  Short-term unsecured obligations issued by corporations, typically used for financing of inventories, accounts receivables, and short-term liabilities. These offer higher yields than government securities with a very short-term investment horizon.

• Repurchase Agreements:

  Short-term investments wherein the investor purchases securities with an agreement that the seller will buy them back at a higher price on a specified date. These are low-risk investments commonly used for managing short-term cash needs.

• Money Market Funds:

  Investments in high-quality, short-term debt securities, providing investors with liquidity and stability. These funds aim to maintain a stable net asset value while offering returns that are generally higher than those of savings accounts.

• Securities of Non-U.S. Issuers:

  Debt securities issued by foreign entities but denominated in U.S. dollars. These investments can provide higher yields and diversification benefits, albeit with additional risks related to foreign economies and exchange rates.

• Supranational Organizations Obligations:

  Investments in debt instruments issued by supranational entities, such as the World Bank or the European Investment Bank. These offer a unique combination of global diversification and low credit risk, supporting multilateral development objectives.