Global ex-U.S. Treasury exposure have a remaining maturity of between and including seven to 12 years and a yield of greater than 0% issued by Australia, Canada, France, Germany, Italy, Japan, New Zealand, Norway, Sweden, Switzerland, and the United Kingdom.
The U.S. agency mortgage-backed securities component is comprised of U.S. agency mortgage pass-through securities backed by pools of mortgages and issued by Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) that have a 30-year fixed-rate program, an issuance date less than 1,000 days, and that are denominated in U.S. dollars.
The U.S. corporate investment-grade exposure is made up of investment grade, fixed-rate, taxable, U.S. dollar denominated debt with $250 million or more of par amount outstanding, issued by U.S. and non-U.S. industrial companies, utilities, and financial institutions that have a remaining maturity of between and including 5 to 15 years, a credit rating between and including BAA1 and BAA3.
The U.S. corporate high-yield debt component includes non-investment grade, fixed-rate, taxable corporate bonds that have a credit rating above B3 using the Bloomberg index rating methodology, an outstanding face amount greater than $800 million, remaining maturity of less than 14 years, and issued within the past 5 years.
Lastly, the emerging markets sovereign and quasi-sovereign debt sector includes fixed-rate sovereign and quasi-sovereign debt of emerging market countries rated investment grade and non-investment grade that have a credit rating between and including BAA1 and BA3 rating and remaining maturity of between and including 5 to 15 years.
DIAL’s underlying index has an average effective duration of 6.42 yeas and a yield-to-worst of 3.47%.
Financial advisors who are interested in learning more about alternative fixed-income strategies can register Tuesday, October 24 webcast here.