Macquarie Diversified Income Fund Class R (DPRFX)

Overview

The fund represents a strategic investment vehicle designed to navigate the complexities of the global fixed income markets by allocating its resources across a diversified portfolio. It is tailored for investors looking to blend their investment across both high-grade and high-yield assets within the United States, as well as those seeking exposure to international developed markets and the dynamically evolving emerging markets. The investment strategy emphasizes a disciplined approach, mandating that at least 80% of its net assets, in addition to any funds procured through borrowing for investment purposes, are allocated to fixed income securities. This stringent investment policy ensures the fund maintains a focused and risk-managed exposure to its chosen sectors, which is critical in navigating the inherent volatilities of the global markets.

Products and Services

• U.S. Investment Grade Sector:

This component of the portfolio focuses on securities that are rated as investment grade by major rating agencies, indicating a lower risk of default compared to non-investment grade securities. Investments in this sector aim to provide stable returns with relatively lower risk, making it an essential part of a diversified investment strategy for risk-averse investors.

• U.S. High Yield Sector:

Targeting fixed income securities that are rated below investment grade, this sector is known for its potential to offer higher yield compared to investment-grade securities. While it comes with a higher risk due to the lower credit quality of the issuers, it adds a valuable layer of diversification and potential for enhanced returns within the fund’s portfolio.

• International Developed Markets Sector:

This segment of the fund’s investment focuses on the fixed income markets of developed countries outside the United States. It offers investors exposure to the economic and interest rate environments of developed economies globally, which can vary significantly from those in the U.S. and provides a hedge against domestic market volatility.

• Emerging Markets Sector:

The fund allocates a portion of its assets to fixed income securities from emerging markets, capped at 20% of its net assets. This sector is attractive for its growth potential, which can outpace that of developed markets. However, it also carries higher risks, including political instability and currency fluctuations, which the fund carefully manages through its strategic asset allocation limit.