Managed accounts

Delaware Capital Management (DCM)

Managed account advisory services are provided by DCM. DCM has approximately $6.6 billion in assets under management as of March 31, 2012, and provides individual investors with access to institutional-quality portfolio management services. DCM is a series of Delaware Management Business Trust (DMBT).

• Focus Non-U.S.
• International Equity ADR
• Large Cap Value Equity
• Large Cap Growth Equity
• Small Cap Value Equity
• Smid Cap Growth — Focus Equity (closed to new investors)

Separately managed accounts are offered by and referred through Delaware Capital Management Advisers, Inc., an SEC-registered investment advisor. 

The Delaware Investments Smid Cap Growth — Focus Equity (SMA) strategy is closed to new investors. The SMA strategy will remain open to existing investors. Effective at the close of business on March 9, 2012, new investors are no longer able to invest in the SMA strategy.

Welcome Macquarie Allegiance Capital clients

On April 1, 2011, Macquarie Allegiance Capital LLC joined Delaware Investments, a fellow member of Macquarie Group. Delaware Investments is a full-service asset-manager based in Philadelphia and offers over 80 years of investment management experience, covering many economic, political, and market environments. Delaware Investments Fixed Income team has been involved in the management of U.S. Government Securities for nearly two decades and manages $18 billion in Treasurys, Agencies, and Agency Mortgage Backed Securities (MBS) as of March 31, 2012.

Additionally, Delaware Investments has extensive experience in managed accounts advisory services which are provided by Delaware Capital Management (DCM). DCM has approximately $6.6 billion in assets under management as of March 31, 2012, and provides individual investors with access to institutional-quality portfolio management services. DCM is a series of Delaware Management Business Trust (DMBT).

Separately managed accounts are offered by and referred through Delaware Capital Management Advisers, Inc., an SEC-registered investment advisor.

Investment style

Using disciplined and rigorous processes, Delaware Investments seeks to add value by employing multiple, risk-adjusted strategies incorporating yield curve and duration positioning, sector allocation, and security selection. Our relative return capability is a core style approach managed on a top-down, trend-following basis with a rigorous bottom-up approach to security selection.

Sector allocation: We actively rotate among investment grade taxable fixed income sectors to capture value in spread changes.

Yield curve management: We actively manage maturity structure to capture shifts in the shape of the yield curve.

Durations adjustments: We constrain the duration of client portfolios to a tight band around the duration of the relevant index.

Products

• Aggregate Duration U.S. Government
• Intermediate Aggregate Duration U.S. Government
• Low Duration U.S. Government 

On Aug. 1, 2011, DCM renamed three of their U.S. Government portfolios to more accurately reflect the holdings in the portfolio. The names now reference “U.S. Government” and all references to “AAA Only” have been removed. U.S. Government securities include direct obligations issued by the U.S. Treasury as well as securities of U.S. government agencies that carry an explicit or implicit guarantee of the U.S. Government. This change in no way affects the portfolios’ investment process.

Market commentary*

Macquarie Allegiance Capital’s previously published commentaries are listed below.

Newsletter - February 2011
“4% again.”

Newsletter - January 2011
“Happy New Year.”

Newsletter - October 2010
“The age of discovery.”

Contact information

Delaware Investments managed account portfolios are accessible through numerous broker/dealer sponsored programs. Individual investors should contact their financial advisors for information on product availability.

For administrative or operational support, advisors should contact 213 233-4501.

For product and service contacts, advisors should contact a Delaware Investments representative at 877 693-3546.

*The views and opinions expressed were those of Macquarie Allegiance Capital and represent the Manager’s assessment of the market environment as of the date of publication and are subject to change as of the date of publication and are subject to change without notice. This information should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Members of DCM’s investment teams may or may not share the same opinions or views as those expressed in these commentaries.

Delaware Investments has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services and should not be used as the basis for any investment decision. Past performance may not be indicative of future results. No liability whatsoever is accepted for any loss (whether direct, indirect, or consequential) that may arise from any use of the information contained in or derived from the commentaries. Delaware Investments and its affiliates may make investment decisions that are inconsistent with the recommendations or views expressed, including for proprietary accounts of Delaware Investments or its affiliates.