Delaware Investments Delaware Investments Delaware Investments

Delaware Diversified Income Fund


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


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

Fund information
Inception date12/29/1997
Dividends paid (if any)Monthly
Capital gains paid (if any)November or December
Fund identifiers
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
Payroll DeductionYes

On Sept. 25, 2014, Class B shares of the Fund converted to Class A shares.

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 (02/28/2017)

as of quarter-end (12/31/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.38%3.66%2.15%2.44%5.19%6.70%12/29/1997
Max offer price-3.23%-1.04%0.58%1.49%4.71%6.44%
Bloomberg Barclays U.S. Aggregate Index0.87%1.42%2.64%2.24%4.28%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-2.42%3.56%2.47%2.55%5.31%6.68%12/29/1997
Max offer price-6.82%-1.06%0.91%1.61%4.83%6.42%
Bloomberg Barclays U.S. Aggregate Index-2.98%2.65%3.03%2.23%4.34%n/a

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the Fund's inception date.

Class A shares have a maximum up-front sales charge of 4.50% and are subject to an annual distribution fee.

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
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 02/28/2017Bloomberg Barclays U.S. Aggregate Index
Number of holdings1,28910,170
Number of credit issuers516
Portfolio turnover (last fiscal year)240%n/a
Effective duration (weighted average) (view definition)5.27 years5.95 years
Effective maturity (weighted average) (view definition)9.11 years8.25 years
Yield to maturity (view definition)3.83%2.57%
Average market price (view definition)$103.75$103.03
Average coupon (view definition)4.50%3.07%
Yield to worst (view definition)3.77%2.57%
SEC 30-day yield with waiver (view definition)2.90%
SEC 30-day yield without waiver (view definition)2.90%
Annualized standard deviation, 3 years (view definition)3.05n/a
Portfolio composition as of 02/28/2017Total may not equal 100% due to rounding.
High grade securities66.8%
High yield securities20.9%
Emerging markets10.4%
International developed1.9%
Top 10 fixed income holdings as of 02/28/2017
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
FN AL99031.7%
United States Treasury Inflation Indexed Bonds 0.125 4/15/20191.1%
Dow Chemical Co. 8.550 5/15/20190.8%
Anheuser-Busch InBev Finance Inc. 3.650 2/1/20260.6%
Crown Castle Towers LLC 4.883 8/15/20200.6%
Bank of America Corp. 4.450 3/3/20260.6%
USB Capital IX 3.500 10/29/20490.5%
KeyBank NA Cleveland OH 6.950 2/1/20280.5%
Mexican Bonos 5.750 3/5/20260.5%
Microsoft Corp. 4.250 2/6/20470.5%
Total % Portfolio in Top 10 holdings7.4%

Fixed income sectors as of 02/28/2017

List excludes cash and cash equivalents.

Investment grade credits41.4%31.4%
High yield credits20.1%0.0%
MBS and CMOs11.7%28.2%
Emerging markets10.4%0.0%
Commercial mortgage-backed securities7.2%1.7%
Asset-backed securities4.3%0.4%
International developed1.9%0.0%
Treasury inflation-protected securities1.4%0.0%
U.S. Treasury securities0.6%36.0%
Municipal bonds0.2%0.0%
Credit quality as of 02/28/2017

Total may not equal 100% due to rounding. The Fund’s investment manager, Delaware Management Company (DMC), a series of Delaware Management Business Trust, receives “Credit Quality” ratings for the underlying securities held by the Fund from three “nationally recognized statistical rating organizations” (NRSROs): Standard & Poor’s Financial Services LLC (S&P), Moody’s Investors Service, and Fitch Ratings, Inc. The credit quality breakdown is calculated by DMC based on the NRSRO ratings. If two or more NRSROs have assigned a rating to a security the higher rating (lower value) is used. If only one NRSRO rates a security, that rating is used. For securities rated by an NRSRO other than S&P, that rating is converted to the equivalent S&P credit rating. Securities that are unrated by any of the three NRSROs are included in the “not rated” category when applicable. Unrated securities do not necessarily indicate low quality. More information about securities ratings is contained in the Fund’s Statement of Additional Information.

Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
Return of