Macquarie Tax-Free USA Fund Q3 2025 Commentary
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Macquarie Asset Management22 FollowersFollow5ShareSavePlay(15min)CommentsSummaryMacquarie Tax-Free USA Fund Institutional Class shares outperformed the Fund's benchmark by 64 basis points, returning 3.64% versus 3.00% for its benchmark, for 3Q25.The US municipal bond market recorded positive returns for 3Q25.The Federal Open Market Committee resumed its easing cycle in September following intense pressure from the administration.From a credit perspective, lower-investment-grade (A- and BBB-rated) bonds were additive.Investors should consider using volatility to add to their municipal exposures.
Getty Images Macquarie Tax-Free USA Fund Institutional (DTFIX) Class shares outperformed the Fund's benchmark by 64 basis points, returning 3.64% versus 3.00% for its benchmark, the Bloomberg Municipal Bond Index, for 3Q25. Macquarie Tax-Free USA Fund Institutional Class shares outperformed the median return withinThis article was written byMacquarie Asset Management22 FollowersFollowMacquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities and multi-asset solutions. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide. Delaware Funds by Macquarie refers to certain investment solutions that MAM distributes, offers, or advises. Investment advisory services are provided to the Delaware Funds by Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT), a Securities and Exchange Commission (SEC) registered investment adviser.
The Delaware Funds are distributed by Delaware Distributors, L.P., a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA) and an affiliate of MIMBT. Note: This account is not managed or monitored by Macquarie Asset Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use the Macquarie Asset Management's official channels.Quick InsightsHow did DTFIX achieve outperformance versus its benchmark in 3Q25?DTFIX outperformed by overweighting long bonds and lower-investment-grade credits, generating 4.15% and 4.65% returns in those segments, versus 3.82% and 2.84% for the benchmark.What is the forward outlook for municipal bonds and DTFIX positioning?I expect rates to grind lower with intermittent volatility, continued robust issuance, and fundamentally strong municipal credit; volatility is viewed as an opportunity to add exposure.What risks or headwinds could impact DTFIX and the municipal bond market?Heavy issuance, uncertain fiscal policy, and potential periods of volatility are key risks, though strong inflows and resilient credit fundamentals currently underpin the asset class.Recommended For You