Delaware High-Yield Opportunities Fund

Objective

Delaware High-Yield Opportunities Fund seeks total return and, as a secondary objective, high current income.

Strategy

The Fund primarily invests in high yield corporate bonds. The Fund’s manager engages thorough credit research to attempt to capture the high yield bond market’s premium return potential.

Fund information
Inception date12/30/1996
Dividends paid*Monthly
Capital gains paid*December

*If any.

Fund identifiers
NASDAQDHOIX
CUSIP245908843

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)2.83%8.31%8.99%17.60%8.82%7.96%12/30/1996
BofA Merrill Lynch U.S. High Yield Constrained Index2.99%7.51%8.69%18.13%8.54%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.83%2.83%8.31%8.99%17.60%8.82%7.96%12/30/1996
BofA Merrill Lynch U.S. High Yield Constrained Index2.99%2.99%7.51%8.69%18.13%8.54%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross0.86%
Net0.81%

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
20142.83%n/an/an/an/a
20133.58%-1.59%2.88%4.04%9.10%
20126.92%1.45%4.89%3.48%17.73%
20114.26%0.77%-9.37%7.35%2.20%
20105.30%-0.73%6.70%4.60%16.66%
20095.08%19.54%12.95%5.83%50.12%
2008-2.53%0.84%-7.71%-18.01%-25.61%
20073.11%0.80%-0.50%-1.44%1.92%
20063.42%0.65%3.54%4.56%12.70%
2005-0.56%1.66%1.66%0.56%3.35%
20042.61%0.68%5.11%5.43%14.47%

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

Portfolio characteristics - as of 03/31/2014
Share assets$238.1 million
Number of holdings276
Effective maturity (weighted average) (view definition)4.96 years
Effective duration (weighted average) (view definition)3.74 years
Annualized standard deviation, 3 years (view definition)8.14
SEC 30-day yield with waiver (view definition)4.30%
SEC 30-day yield without waiver (view definition)4.24%
Portfolio turnover (last fiscal year)88%
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
Credits71.6%
Foreign bonds23.0%
Cash and cash equivalents2.8%
Equity securities2.7%
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
Par Pharmaceutical Cos Inc. 7.375 10/15/20201.0%
Univision Communications Inc. 8.500 5/15/20210.8%
Algeco Scotsman Global Finance Plc 10.750 10/15/20190.8%
Intelsat Luxembourg S.A. 8.125 6/1/20230.8%
Ally Financial Inc.0.8%
Digicel Group Ltd. 8.250 9/30/20200.8%
Virgin Media Finance PLC 6.375 4/15/20230.8%
VTR Finance BV 6.875 1/15/20240.8%
Clear Channel Communications Inc. 6.750 1/30/20190.8%
ArcelorMittal 6.125 6/1/20180.7%
Total % Portfolio in Top 10 holdings8.1%

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
Energy14.6%
Healthcare10.2%
Basic industry9.4%
Media8.8%
Services8.3%
Consumer cyclical7.4%
Technology & electric7.2%
Telecommunications6.9%
Capital goods3.6%
Emerging markets3.4%
Distribution history - annual distributions (Institutional Class)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.063
20130.0000.286
20120.0000.311
20110.0000.332
20100.0000.358
20090.0000.320
20080.0000.308
20070.0000.348
20060.0000.347
20050.0000.333
20040.0000.350

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

Thomas Chow

Thomas H. Chow, CFA

Chief Investment Officer — Corporate Credit

Start date on the Fund: December 2012

(View bio)


Paul Matlack

Paul Matlack, CFA

Senior Portfolio Manager, Fixed Income Strategist

Start date on the Fund: December 2012

(View bio)


Craig Dembeck

Craig C. Dembek, CFA

Co-Head of Credit Research, Senior Research Analyst

Start date on the Fund: December 2012

(View bio)


John McCarthy

John P. McCarthy, CFA

Co-Head of Credit Research, Senior Research Analyst

Start date on the Fund: December 2012

(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 fees0.64%
Distribution and service (12b-1) feesnone
Other expenses0.22%
Total annual fund operating expenses0.86%
Fee waivers and expense reimbursements(0.05%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.81%

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 plan, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, acquired 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 fund operating expenses from exceeding 0.81% 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 Distributor, as applicable, 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.

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.

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 04/17/2014)

Institutional ClassPriceNet changeYTD
NAV$4.40no chg2.88%
Max offer price$4.40n/an/a

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

$686.4 million all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking238 / 627
1 year69 / 577
3 years55 / 468
5 years82 / 395
10 years13 / 273
Lipper classificationHigh Yield Funds

(View Lipper disclosure)

Literature

Prospectuses and reports

Benchmark, peer group

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

Lipper High Yield Funds Average (view)

Additional information