Delaware Core Bond Fund

Objective

Delaware Core Bond Fund seeks maximum long-term total return, consistent with reasonable risk.

Strategy

The Fund will invest primarily in a diversified portfolio of investment grade, fixed income obligations, including U.S. government securities, mortgage-backed securities, asset-backed securities, corporate bonds, and other fixed income securities.

Fund information
Inception date09/30/2009
Dividends paid*Monthly
Capital gains paid*December

*If any.

Fund identifiers
NASDAQDCBIX
CUSIP245908678

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 (03/31/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.92%-1.49%3.59%n/an/a4.29%09/30/2009
Barclays U.S. Aggregate Index1.84%-0.10%3.75%n/an/an/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.92%1.92%-1.49%3.59%n/an/a4.29%09/30/2009
Barclays U.S. Aggregate Index1.84%1.84%-0.10%3.75%n/an/an/a

Returns for less than one year are not annualized.

Expense ratio
Gross1.14%
Net0.65%

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
20141.92%n/an/an/an/a
2013-0.35%-3.38%0.02%0.01%-3.69%
20120.70%2.37%1.91%0.09%5.15%
20110.59%2.31%4.10%1.11%8.31%
20102.10%2.78%2.96%-1.49%6.42%
2009n/an/an/a1.54%n/a

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

Portfolio characteristics - as of 03/31/2014
Share assets$13.6 million
Number of holdings374
Effective maturity (weighted average) (view definition)7.42 years
Effective duration (weighted average) (view definition)5.35 years
Annualized standard deviation, 3 years (view definition)3.25
SEC 30-day yield with waiver (view definition)1.69%
SEC 30-day yield without waiver (view definition)0.90%
Portfolio turnover (last fiscal year)537%
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
Credits36.7%
U.S. government securities28.8%
Mortgage-backed securities26.7%
Asset-backed securities7.9%
Top 10 holdings as of 03/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
United States Treasury Note/Bond 0.500 8/15/201410.1%
United States Treasury Note/Bond 2.750 2/15/20246.4%
United States Treasury Note/Bond 3.750 11/15/20435.3%
United States Treasury Note/Bond 1.500 2/28/20194.6%
FNCI APR TBA3.1%
FNCI APR TBA2.1%
General Electric Capital Corp. 4.375 9/16/20202.1%
FNCI APR TBA2.0%
GCCT 2014-2A A1.6%
FNR 2006-105 ME1.5%
Total % Portfolio in Top 10 holdings38.8%

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

Top sectors as of 03/31/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Investment grade credits36.3%
U.S. Treasury securities26.4%
MBS and CMOs25.0%
Asset-backed securities7.9%
Commercial mortgage-backed securities1.7%
Emerging markets0.4%
Distribution history - annual distributions (Institutional Class)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.076
20130.0000.231
20120.3660.230
20110.3820.271
20100.0840.269
20090.0000.456
20080.0000.499
20070.0000.519
20060.0000.466
20050.0000.451
20040.0000.464

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

Paul Grillo

Paul Grillo, CFA

Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: February 2001

(View bio)


Roger Early

Roger Early, CPA, CFA, CFP

Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: May 2007

(View bio)


Thomas Chow

Thomas H. Chow, CFA

Chief Investment Officer — Corporate Credit

Start date on the Fund: May 2007

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

Senior Portfolio Manager, Senior Structured Products Analyst, Trader

Start date on the Fund: November 2011

(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 fees0.50%
Distribution and service (12b-1) feesnone
Other expenses0.64%
Total annual fund operating expenses1.14%
Fee waivers and expense reimbursements(0.49%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.65%

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

1The Fund's investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse 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) in order to prevent annual fund operating expenses from exceeding, in an aggregate amount, 0.65% 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 800 362-7500. 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.

The Funds 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.

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.

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

The Funds are 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 04/24/2014)

Institutional ClassPriceNet changeYTD
NAV$10.39no chg2.47%
Max offer price$10.39n/an/a

Total net assets (as of 03/31/2014)

$16.9 million all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking295 / 531
1 year485 / 507
3 years298 / 456
5 yearsn/a
10 yearsn/a
Lipper classificationCore Bond Funds

(View Lipper disclosure)

Literature

Prospectuses and reports  

Benchmark, peer group

Barclays U.S. Aggregate Index (view)

Lipper Core Bond Funds Average (view)

Additional information