Fund Evaluator:

Destinations Low Duration Fixed Inc Z Overview

Destinations Low Duration Fixed Inc Z (DLDZX) is an actively managed Taxable Bond Short-Term Bond fund. Destinations Funds launched the fund in 2018.

The investment seeks current income. The fund will invest at least 80% of its total assets (plus the amount of any borrowings for investment purposes) in a diversified portfolio of fixed income securities. It will normally be constructed with an average duration of three years or less. The fund primarily invests in bonds, debt, fixed income and income-producing instruments issued by governmental or private-sector entities, including mortgage-backed securities, asset-backed securities, junk bonds, corporate debt, foreign securities, inflation-indexed bonds, bank loans and assignments, collateralized loan obligations, preferred securities and SPACs.

About Destinations Low Duration Fixed Inc Z (DLDZX)

There are 9 members of the management team with an average tenure of 6.60 years: Timothy Holland (2022), Jeffrey Sherman (2017), David Sherman (2017), Robert Cohen (2017), Brian Storey (2022), T. Kirk Whitney (2022), Luz Padilla (2017), Andrew Goins (2023), Jeffrey Gundlach (2017). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: ICE BofA US Broad Market TR USD index with a weighting of 100% and BofAML US Corporate&Govt 1-3Y TR EUR index with a weighting of 100%. Destinations Low Duration Fixed Inc Z has 531 securities in its portfolio. The top 10 holdings constitute 31.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Destinations Low Duration Fixed Inc Z is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Destinations Low Duration Fixed Inc Z has 16.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 5.3%. There is 0.7% allocated to foreign stock, and 0.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 79.0% (63.5% domestic bond, 15.5% foreign bond and 3.3% convertible bond). Destinations Low Duration Fixed Inc Z has 11.3% of the portfolio in cash.

Assets Under Management

The fund has $27 million in total assets, which is below the $893 million average for the Short-Term Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

DLDZX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Destinations Low Duration Fixed Inc Z expense ratio is high compared to funds in the Short-Term Bond category. Destinations Low Duration Fixed Inc Z has an expense ratio of 0.85%, which is 28% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Destinations Low Duration Fixed Inc Z has a portfolio turnover rate of 76%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 134% for the Short-Term Bond category.

Recently, in the month of June 2026, Destinations Low Duration Fixed Inc Z returned -0.0%, which earned it a grade of F, as the Short-Term Bond category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Destinations Low Duration Fixed Inc Z has a trailing yield of 5.82%, which is above the 4.15% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Destinations Low Duration Fixed Inc Z Grades

Year to date, the fund has returned 1.6%, 0.7 percentage points better than the category, which translates into a grade of A. The fund has returned 5.1% over the past year (grade of A), 6.4% over the past three years (grade of A) and 4.6% per year over the past five years (grade of A).

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