Destinations Low Duration Fixed Income Fund Z (DLDZX)

Overview

The fund is a diversified investment vehicle focusing on providing its investors with exposure to fixed income securities. It commits at least 80% of its total assets, including any borrowed funds, towards investments in a variety of debt instruments. The fund's investment strategy targets an average duration of three years or less, aiming to balance risk and return effectively. By investing in a wide range of bonds and income-producing instruments across both governmental and private sectors, the fund seeks to offer consistent returns to its investors. It places a strong emphasis on diversification and risk management through its broad investment in fixed income securities.

Products and Services

The fund offers investment opportunities in various fixed income and income-producing instruments, detailed as follows:

• Bonds and Debt: Investments in various types of bonds and debt instruments, including government bonds, corporate debt, and foreign securities, providing a reliable income stream.
• Mortgage-Backed Securities: Securities backed by mortgages that offer regular payments derived from mortgage interest and principal repayments.
• Asset-Backed Securities: Investments in pools of assets that generate income, such as credit card receivables or auto loans, offering diversification beyond traditional fixed income sources.
• Junk Bonds: Higher yield bonds that carry a greater risk of default, aiming to increase potential returns on the portfolio.
• Inflation-Indexed Bonds: Bonds that adjust their payouts based on inflation rates, aiming to protect investors’ purchasing power.
• Bank Loans and Assignments: Investments in loans taken by corporations from banks or other lending institutions, often characterized by floating interest rates.
• Collateralized Loan Obligations (CLOs): Securities backed by a pool of debt, usually leveraged loans, offering high returns in exchange for higher risk.
• Preferred Securities: Stock with fixed dividends, ranking above common stock in the event of liquidation, and offering a blend of bond and stock features.
• SPACs (Special Purpose Acquisition Companies): Investment in companies specifically set up to merge or acquire another business, providing potential for significant returns.