The High-Yield Bond Portfolio

Objective

The High-Yield Bond Portfolio seeks high total return.

Strategy

The Portfolio will primarily invest its assets at the time of purchase in: (1) below investment grade corporate bonds rated BB or lower by Standard & Poor's (S&P) or similarly rated by another Nationally Recognized Statistical Rating Organization (NRSRO); (2) securities issued or guaranteed by the U.S. government, its agencies or instrumentalities; or (3) commercial paper of companies rated A-1 or A-2 by S&P or rated P-1 or P-2 by Moody's Investors Service, Inc. or that may be unrated but considered to be of comparable quality. Of these categories of securities, we anticipate investing primarily in corporate bonds. The Portfolio may also invest in income-producing securities, including common stocks and preferred stocks, some of which may have convertible features or attached warrants and that may be speculative. The Portfolio may invest up to 25% of its total assets in securities of issuers domiciled in foreign countries. The Portfolio may hold cash or invest in short-term debt securities and other money market instruments when, in our opinion, such holdings are prudent given then prevailing market conditions. Except when we believe a temporary defensive approach is appropriate, the Portfolio normally will not hold more than 5% of its total assets in cash or such short-term investments.

Under normal circumstances, the Portfolio will invest at least 80% of its net assets, plus any borrowings for investment purposes, in high yield, fixed income securities (80% Policy). The Portfolio's 80% Policy may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change.

High yield, fixed income securities, or high yield bonds, are generally considered to be those rated lower than BBB- by S&P and lower than Baa3 by Moody's, or similarly rated by another NRSRO. The Portfolio will generally focus its investments on bonds in the BB/Ba or B/B ratings categories and in unrated bonds of similar quality.

From time to time, the Portfolio may acquire zero-coupon bonds and, to a lesser extent, pay-in-kind (PIK) bonds; however, the Portfolio generally does not purchase a substantial amount of these securities.

With respect to U.S. government securities, the Portfolio may invest only in securities issued or guaranteed as to the payment of principal and interest by the U.S. government, and those of its agencies or instrumentalities that are backed by the full faith and credit of the United States.

We do not normally intend to respond to short-term market fluctuations or to acquire securities for the purpose of short-term trading; however, we may take advantage of short-term opportunities that are consistent with the Portfolio’s investment objective.

Portfolio information
Inception date12/02/1996
Dividends paid (if any)Annually
Capital gains paid (if any)December
Portfolio identifiers
NASDAQDPHYX
CUSIP246248850
Investment minimums
Initial investment**$1,000,000
Subsequent InvestmentsNo minimum

**In the aggregate across all Portfolios of the Delaware Pooled Trust.

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 (06/30/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)5.66%12.88%10.07%14.67%9.76%8.64%12/02/1996
BofA Merrill Lynch U.S. High Yield Constrained Index5.64%11.79%9.25%13.89%8.91%n/a
Average annual total return as of quarter-end (06/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.57%5.66%12.88%10.07%14.67%9.76%8.64%12/02/1996
BofA Merrill Lynch U.S. High Yield Constrained Index2.57%5.64%11.79%9.25%13.89%8.91%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross0.57%
Net0.57%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20143.01%2.57%n/an/an/a
20133.58%-1.31%2.78%3.94%9.21%
20127.02%1.29%4.96%3.52%17.78%
20114.35%1.01%-8.63%7.39%3.43%
20105.56%-0.81%6.94%4.53%17.04%
20096.04%21.06%13.48%6.20%54.70%
2008-2.46%1.40%-7.86%-17.17%-24.51%
20072.84%0.63%0.00%-1.25%2.19%
20062.95%0.91%3.49%4.57%12.43%
2005-0.14%1.47%0.78%0.83%2.97%
20042.99%2.05%5.02%6.33%17.37%
Portfolio characteristics - as of 06/30/2014
Share assets$143.5 million
Number of holdings269
Effective maturity (weighted average) (view definition)4.85 years
Effective duration (weighted average) (view definition)4.06 years
Annualized standard deviation, 3 years (view definition)7.71
SEC 30-day yield with waiver (view definition)4.95%
SEC 30-day yield without waiver (view definition)4.95%
Portfolio turnover (last fiscal year)90%
Top 10 holdings as of 06/30/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Ally Financial Inc.1.0%
First Data Corp. 11.750 8/15/20211.0%
Par Pharmaceutical Cos Inc. 7.375 10/15/20200.9%
Algeco Scotsman Global Finance Plc 10.750 10/15/20190.9%
Intelsat Luxembourg S.A. 8.125 6/1/20230.8%
Lloyds Banking Group PLC 7.500 4/30/20490.8%
Digicel Group Ltd. 8.250 9/30/20200.8%
Stena AB 7.000 2/1/20240.8%
VTR Finance BV 6.875 1/15/20240.8%
Nuveen Investments Inc. 9.500 10/15/20200.8%
Total % Portfolio in Top 10 holdings8.6%
Top sectors as of 06/30/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Energy15.6%
Basic industry10.6%
Services7.7%
Media7.2%
Healthcare7.1%
Telecommunications7.0%
Technology & electric6.7%
Capital goods6.0%
Consumer cyclical5.3%
Emerging markets4.7%
Distribution history - annual distributions (Original Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20140.0000.000
20130.0000.543
20120.0000.450
20110.0000.583
20100.0000.619
20090.0000.662
20080.0000.520
20070.0000.578
20060.0000.633
20050.0000.601
20040.0000.750

1If a Portfolio 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 Portfolio will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Portfolio'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 Portfolio (if any).

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

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

Thomas Chow

Thomas H. Chow, CFA

Senior Vice President, Chief Investment Officer — Corporate Credit

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)


Paul Matlack

Paul Matlack, CFA

Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

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)


Christopher Testa

Christopher M. Testa, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: June 2014

(View bio)


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

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
Purchase reimbursement feesnone
Redemption reimbursement feesnone
Annual portfolio operating expenses
Management fees0.45%
Distribution and service (12b-1) feesnone
Other expenses0.12%
Total annual portfolio operating expenses0.57%
Fee waivers and expense reimbursementsnone
Total annual portfolio operating expenses after fee waivers and expense reimbursements0.57%

1The Portfolio’s investment manager, Delaware Management Company (Manager), is contractually waiving its investment advisory fees and/or paying Portfolio expenses (excluding any 12b-1 fees, taxes, interest, short sale and dividend interest expenses, brokerage fees, certain insurance costs, acquired fund fees and expenses, 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 Portfolio operating expenses from exceeding 0.59% of the Portfolio's average daily net assets from Feb. 27, 2014 through Feb. 27, 2015. These waivers and reimbursements may only be terminated by agreement of the Manager and the Portfolio.

Carefully consider the Portfolio's investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Portfolio's prospectus, if available, its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 231-8002. Investors should read the prospectus, and, if available, 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 Portfolio may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Portfolio may be prepaid prior to maturity, potentially forcing the Portfolio to reinvest that money at a lower interest rate.

The Portfolio may be invested in foreign corporate bonds, which have special risks not ordinarily associated with domestic investments, such as currency fluctuations, economic and political change, and different accounting standards.

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

The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.

The Portfolio may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

Per Standard & Poor’s credit rating agency, bonds rated below AAA, including A, are more susceptible to the adverse effects of changes in circumstances and economic conditions than those in higher-rated categories, but the obligor’s capacity to meet its financial commitment on the obligation is still strong. Bonds rated BBB exhibit adequate protection parameters, although adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics with BB indicating the least degree of speculation.

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

The Portfolio is distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 07/29/2014)

Original ClassPriceNet changeYTD
NAV$8.72-0.025.06%
Max offer price$8.72n/an/a

Total net assets (as of 06/30/2014)

$143.5 million all share classes

Lipper ranking (as of 06/30/2014)

YTD ranking103 / 625
1 year49 / 589
3 years28 / 473
5 years30 / 405
10 years6 / 276
Lipper classificationHigh Yield Funds

(View Lipper disclosure)

Benchmark, peer group

BofA Merrill Lynch U.S. High Yield Constrained Index (view)

Lipper High Yield Funds Average (view)

Additional information