Delaware Diversified Income Fund

Objective

Delaware Diversified Income Fund seeks maximum long-term total return, consistent with reasonable risk.

Strategy

The Fund invests in four sectors — U.S. investment grade sector, U.S. high yield sector, international developed markets sector, and emerging markets sector.

Fund information
Inception date10/28/2002
Dividends paid*Monthly
Capital gains paid*December

*If any.

Fund identifiers
NASDAQDPFFX
CUSIP246248587

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)2.40%0.97%4.53%9.34%6.49%7.57%10/28/2002
Barclays U.S. Aggregate Index1.84%-0.10%3.75%4.80%4.46%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.40%2.40%0.97%4.53%9.34%6.49%7.57%10/28/2002
Barclays U.S. Aggregate Index1.84%1.84%-0.10%3.75%4.80%4.46%n/a

Returns for less than one year are not annualized.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Expense ratio
Gross0.65%
Net0.65%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20142.40%n/an/an/an/a
20130.38%-3.46%0.78%1.35%-1.02%
20121.35%2.41%2.71%0.51%7.15%
20111.29%2.06%0.75%2.28%6.53%
20103.12%1.26%3.85%-0.25%8.15%
20090.51%10.14%9.86%3.24%25.53%
20082.49%-1.72%-3.86%-0.70%-3.84%
20072.80%0.13%2.73%1.72%7.56%
20060.87%0.25%3.86%3.02%8.20%
2005-1.05%1.56%-0.70%-0.15%-0.36%
20042.46%-1.88%4.25%4.71%9.74%

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

Portfolio characteristics - as of 03/31/2014
Share assets$1.6 billion
Number of holdings1,372
Effective maturity (weighted average) (view definition)7.92 years
Effective duration (weighted average) (view definition)5.34 years
Annualized standard deviation, 3 years (view definition)3.63
SEC 30-day yield with waiver (view definition)3.34%
SEC 30-day yield without waiver (view definition)3.34%
Portfolio turnover (last fiscal year)238%
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
High grade securities60.8%
High yield securities28.5%
Emerging markets9.0%
International developed1.7%
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 3.625 2/15/20442.1%
FNCI APR TBA1.5%
FNCI APR TBA1.4%
FNCI APR TBA1.0%
FNCL AB65890.9%
Crown Castle Towers LLC 4.883 8/15/20200.8%
Dow Chemical Co. 8.550 5/15/20190.7%
United States Treasury Note/Bond 3.750 11/15/20430.7%
CareFusion Corp. 6.375 8/1/20190.7%
Pride International Inc. 6.875 8/15/20200.6%
Total % Portfolio in Top 10 holdings10.4%

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 credits38.9%
High yield credits27.3%
MBS and CMOs15.0%
Emerging markets9.0%
Commercial mortgage-backed securities3.2%
U.S. Treasury securities2.8%
International developed1.7%
Asset-backed securities0.9%
Municipal bonds0.7%
Distribution history - annual distributions (Institutional Class)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.125
20130.0000.353
20120.0900.365
20110.2340.416
20100.3670.480
20090.0680.506
20080.0000.542
20070.0810.536
20060.0000.478
20050.0000.397
20040.0920.472

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

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)


Paul Grillo

Paul Grillo, CFA

Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: February 2001

(View bio)


Wen-Dar Chen

Wen-Dar Chen, Ph.D.

Portfolio Manager — International Debt

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)


David Hillmeyer

David Hillmeyer, CFA

Senior Portfolio Manager

Start date on the Fund: February 2011

(View bio)


Steven Landis

Steven A. Landis 

Senior Portfolio Manager — Emerging Markets Debt

Start date on the Fund: September 2013

(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 fees0.44%
Distribution and service (12b-1) feesnone
Other expenses0.21%
Total annual fund operating expenses0.65%
Fee waivers and expense reimbursementsnone
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. 

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.

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.

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.

If and when the Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.

Diversification may not protect against market risk.

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.

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 04/23/2014)

Institutional ClassPriceNet changeYTD
NAV$9.060.013.12%
Max offer price$9.06n/an/a

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

$5.8 billion all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking117 / 254
1 year172 / 226
3 years110 / 156
5 years102 / 128
10 years24 / 88
Lipper classificationMulti-Sector Income Fds

(View Lipper disclosure)

Literature

Prospectuses and reports

Benchmark, peer group

Barclays U.S. Aggregate Index (view)

Lipper Multi-Sector Income Funds Average (view)

Additional information