DYLD aims to capture higher yields from an actively managed portfolio of global fixed income securities diversified to include both investment grade and high yield bonds of any sector, maturity or duration. The fund generally invests in corporate bonds, US government and agency securities, private debt, foreign sovereign bonds, asset- and mortgage-backed securities, convertible securities and bank loans. Constituents are selected by the fund adviser using a risk-reward scheme which seeks to identify when the yield opportunities from an increased/decreased exposure to a certain credit and/or duration is sufficient to compensate for its relative risk, and when to take a more defensive position in case of a higher risk of loss. During periods of above-average risk, the fund may fully invest in US government securities of the same maturity. Portfolio rebalancing will vary based on fixed income market conditions and fund advisers discretion.
