Delaware Extended Duration Bond Fund

Objective

Delaware Extended Duration Bond Fund seeks to provide investors with total return.

Strategy

The Fund will primarily invest in long duration investment-grade corporate bonds. The Fund may also invest in unrated bonds if we believe their credit quality is comparable to those that have investment grade ratings.

Fund information
Inception date09/15/1998
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQDEEIX
CUSIP245908793

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Total returns may reflect waivers and/or expense reimbursements by the manager and/or distributor for some or all of the periods shown. Performance would have been lower without such waivers and reimbursements.

Average annual total return as of month-end (07/31/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)12.25%13.72%10.95%12.95%9.66%9.09%09/15/1998
Barclays Long U.S. Corporate Index11.42%12.33%8.35%9.79%7.43%n/a
Average annual total return as of quarter-end (06/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)5.58%12.49%14.63%12.39%14.51%9.90%9.16%09/15/1998
Barclays Long U.S. Corporate Index4.76%11.22%13.38%9.92%11.27%7.61%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross0.74%
Net0.71%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursement from Nov. 27, 2013 through Nov. 28, 2014. Please see the fee table in the Fund's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20146.55%5.58%n/an/an/a
2013-0.11%-5.47%-0.48%2.40%-3.78%
20121.26%6.68%5.57%2.35%16.71%
20111.05%2.87%7.87%4.17%16.81%
20103.95%5.03%7.82%-2.64%14.60%
2009-6.19%14.73%14.98%1.26%25.31%
20080.10%-1.73%-8.56%8.25%-2.61%
20071.09%-2.07%1.86%2.25%3.10%
2006-2.67%-1.78%7.69%2.76%5.78%
2005-0.66%6.03%-2.84%0.75%3.11%
20045.23%-5.48%7.01%3.48%10.14%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Portfolio characteristics - as of 07/31/2014
Share assets$307.0 million
Number of holdings182
Effective maturity (weighted average) (view definition)20.60 years
Effective duration (weighted average) (view definition)13.12 years
Annualized standard deviation, 3 years (view definition)7.45
SEC 30-day yield with waiver (view definition)4.16%
SEC 30-day yield without waiver (view definition)4.13%
Portfolio turnover (last fiscal year)217%
Portfolio composition as of 07/31/2014Total may not equal 100% due to rounding.
Credits94.8%
Mortgage-backed / asset-backed securities2.4%
U.S. government securities2.2%
Municipal bonds0.6%
Top 10 holdings as of 07/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
South Carolina Electric & Gas Co. 4.500 6/1/20642.0%
Verizon Communications Inc. 6.550 9/15/20431.8%
Monongahela Power Co. 5.400 12/15/20431.5%
Oracle Corp. 4.500 7/8/20441.4%
Monsanto Co. 4.400 7/15/20441.4%
SES Global Americas Holdings GP 5.300 3/25/20441.3%
ERAC USA Finance LLC 5.625 3/15/20421.2%
EnLink Midstream Partners LP 5.600 4/1/20441.2%
Hasbro Inc. 5.100 5/15/20441.2%
Electricite de France S.A. 5.250 12/29/20491.2%
Total % Portfolio in Top 10 holdings14.2%

Holdings are as of the date indicated and subject to change.

Top sectors as of 07/31/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Financial institutions22.3%
Communications14.6%
Utility14.3%
Energy11.7%
Noncorporate8.2%
Basic industry6.6%
Consumer noncyclical5.2%
Technology3.8%
Consumer cyclical3.7%
ABS, CMBS, MBS2.4%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20140.0000.200
20130.0000.306
20120.4360.319
20110.2660.344
20100.3170.365
20090.0000.367
20080.0000.318
20070.0000.329
20060.0000.332
20050.0520.319
20040.2000.343

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Thomas Chow

Thomas H. Chow, CFA

Senior Vice President, Chief Investment Officer — Corporate Credit

Start date on the Fund: May 2007

(View bio)


Roger Early

Roger Early, CPA, CFA, CFP

Senior Vice President, Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: May 2007

(View bio)


Paul Matlack

Paul Matlack, CFA

Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

Start date on the Fund: December 2012

(View bio)


Craig Dembeck

Craig C. Dembek, CFA

Senior Vice President, Co-Head of Credit Research, Senior Research Analyst

Start date on the Fund: December 2012

(View bio)


John McCarthy

John P. McCarthy, CFA

Senior Vice President, Co-Head of Credit Research, Senior Research Analyst

Start date on the Fund: December 2012

(View bio)


Image not available

Kashif Ishaq 

Head of Investment Grade Corporate Bond Trading

Start date on the Fund: November 2013

(View bio)


Christopher Testa

Christopher M. Testa, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: June 2014

(View bio)


Institutional Class shares are only available to certain investors. See the prospectus for more information. 

The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.53%
Distribution and service (12b-1) feesnone
Other expenses0.21%
Total annual fund operating expenses0.74%
Fee waivers and expense reimbursements(0.03%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.71%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

1The Fund's investment manager, Delaware Management Company (Manager), is contractually waiving its investment advisory fees and/or paying expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) to the extent necessary to prevent total annual fund operating expenses from exceeding 0.71% of the Fund's average daily net assets from Nov. 27, 2013 through Nov. 28, 2014. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Diversification may not protect against market risk.

The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 08/27/2014)

Institutional ClassPriceNet changeYTD
NAV$6.950.0315.11%
Max offer price$6.95n/an/a

Total net assets (as of 07/31/2014)

$649.0 million all share classes

Lipper ranking (as of 07/31/2014)

YTD ranking5 / 197
1 year4 / 195
3 years3 / 162
5 years1 / 137
10 years1 / 93
Lipper classificationCorp Debt BBB Rated Fds

(View Lipper disclosure)

Benchmark, peer group

Barclays Long U.S. Corporate Index (view)

Lipper Corporate Debt Funds BBB-Rated Average (view)

Additional information