Macquarie Diversified Income Fund Class R6 (DPZRX)

Overview

The fund is a comprehensive investment solution focusing on fixed income securities across a broad spectrum of markets. It emphasizes a diversification strategy that spans the U.S. investment grade sector, the U.S. high yield sector, international developed markets, and the emerging markets sector. The fund operates with a principle of investing at least 80% of its net assets, in addition to any borrowings for investment purposes, in fixed income securities. It is specifically designed for investors looking to tap into the potential of fixed income markets while maintaining a level of risk mitigation through geographical and sectoral diversification. A cautious approach is taken with emerging markets, limiting exposure to no more than 20% of the fund's net assets, reflecting a balanced stance on risk and opportunity in these regions.

Products and Services

• U.S. Investment Grade Sector:

Investments in this sector target fixed income securities with high credit ratings in the United States. It's aimed at investors seeking stable returns with relatively low risk. This includes government bonds, corporate bonds, and municipal bonds considered to be of high credit quality.

• U.S. High Yield Sector:

Targeting the U.S. high yield market, this portion of the fund seeks to generate higher returns by investing in bonds that have lower credit ratings compared to investment grade bonds. While riskier, these securities offer the potential for higher income, appealing to investors who are willing to accept increased volatility for greater yield.

• International Developed Markets Sector:

This segment involves investment in fixed income securities from developed countries outside the United States. The diversification across nations allows for exposure to various economic cycles and interest rate environments, thereby spreading risk and potential reward. It suits those looking to broaden their investment horizons beyond U.S. borders.

• Emerging Markets Sector:

Constituting up to 20% of the fund's assets, investments in this sector are aimed at fixed income securities from emerging markets. These investments offer high growth potential but come with increased risks due to economic volatility and political instability in these regions. This sector is for investors seeking to diversify their portfolio further and are comfortable with higher risk for the potential of higher returns.