Delaware Limited-Term Diversified Income Fund

Objective

Delaware Limited-Term Diversified Income Fund seeks maximum total return, consistent with reasonable risk.

Strategy

The Fund invests primarily in investment-grade fixed income securities, and maintains an average effective duration from one to three years. The Fund is generally diversified across multiple types of fixed income securities.

Fund information
Inception date06/01/1992
Dividends paid*Monthly
Capital gains paid*Annually

*If any.

Fund identifiers
NASDAQDTINX
CUSIP245912506

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)0.57%-0.89%1.42%3.79%3.61%5.40%06/01/1992
Barclays 1-3 Year U.S. Government/Credit Index0.23%0.68%1.18%1.95%2.81%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.57%0.57%-0.89%1.42%3.79%3.61%5.40%06/01/1992
Barclays 1-3 Year U.S. Government/Credit Index0.23%0.23%0.68%1.18%1.95%2.81%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
Gross0.66%
Net0.66%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20140.57%n/an/an/an/a
2013-0.22%-2.19%-0.02%0.78%-1.66%
20121.24%1.34%0.60%-0.55%2.64%
20110.14%2.02%1.36%-0.60%2.94%
20101.99%0.25%1.73%-0.04%3.97%
20091.85%4.80%4.42%1.33%12.93%
20082.39%-0.93%0.22%0.69%2.37%
20071.57%0.01%2.20%2.61%6.52%
20060.07%0.50%2.46%0.84%3.92%
20050.03%1.50%-0.07%0.44%1.91%
20041.79%-1.29%1.51%0.46%2.46%

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

Portfolio characteristics - as of 03/31/2014
Share assets$440.9 million
Number of holdings570
Effective maturity (weighted average) (view definition)3.90 years
Effective duration (weighted average) (view definition)1.80 years
Annualized standard deviation, 3 years (view definition)1.84
SEC 30-day yield with waiver (view definition)1.00%
SEC 30-day yield without waiver (view definition)1.00%
Portfolio turnover (last fiscal year)236%
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
Credits45.4%
Asset-backed securities39.8%
Mortgage-backed securities9.2%
U.S. government securities4.8%
Commercial mortgage-backed securities0.8%
Top 10 holdings as of 03/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
GEDFT 2012-2 A1.8%
HBOS Capital Funding LP 6.071 6/29/20491.7%
FNCI AE05521.3%
GCCT 2012-3A A1.3%
AMXCA 2013-1 A1.2%
Leap Wireless International Inc. 4.500 7/15/20141.1%
GEDFT 2013-1 A1.1%
CHAIT 2013-A3 A31.1%
BCARD 2012-1A A11.1%
VWMT 2011-1A NOTE1.0%
Total % Portfolio in Top 10 holdings12.7%
Top sectors as of 03/31/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Asset-backed securities39.8%
Investment grade credits38.2%
MBS and CMOs9.2%
High yield credits5.2%
Emerging markets1.7%
Commercial mortgage-backed securities0.8%
Municipal bonds0.3%
Distribution history - annual distributions (Institutional Class)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.039
20130.0000.153
20120.0150.188
20110.1250.234
20100.0410.259
20090.0000.349
20080.0000.360
20070.0000.389
20060.0000.376
20050.0000.370
20040.0000.347

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 1999

(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)


Brian McDonnell

Brian C. McDonnell, CFA

Senior Portfolio Manager, Senior Structured Products Analyst, Trader

Start date on the Fund: April 2012

(View bio)


Thomas Chow

Thomas H. Chow, CFA

Chief Investment Officer — Corporate Credit

Start date on the Fund: October 2013

(View bio)


Adam Brown

Adam H. Brown, CFA

Portfolio Manager

Start date on the Fund: October 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 fees0.46%
Distribution and service (12b-1) feesnone
Other expenses0.20%
Total annual fund operating expenses0.66%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.66%

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.

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.

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 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.

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.

Diversification may not protect against market risk.

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 04/15/2014)

Institutional ClassPriceNet changeYTD
NAV$8.58no chg0.87%
Max offer price$8.58n/an/a

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

$1.4 billion all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking130 / 170
1 year128 / 158
3 years104 / 118
5 years66 / 102
10 years37 / 86
Lipper classificationSht-Intmt Inv Grade Debt

(View Lipper disclosure)

Literature

Prospectuses and reports

Benchmark, peer group

Barclays 1-3 Year U.S. Government/Credit Index (view)

Lipper Short-Intermediate Investment Grade Debt Funds Average (view)

Additional information