Delaware Diversified Floating Rate Fund

Objective

Delaware Diversified Floating Rate Fund seeks total return.

Strategy

The Fund generally invests at least 80% of net assets in a diversified portfolio of floating-rate securities.

Fund information
Inception date02/26/2010
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQDDFLX
CUSIP245908637

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 (12/31/2016)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.77%3.77%1.22%2.25%n/a2.14%02/26/2010
BofA ML USD 3Mo Deposit Offered Rate Constant Maturity Index0.66%0.66%0.38%0.38%n/a0.36%
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.93%3.77%1.22%2.25%n/a2.14%02/26/2010
BofA ML USD 3Mo Deposit Offered Rate Constant Maturity Index0.20%0.66%0.38%0.38%n/a0.36%

Returns for less than one year are not annualized.

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

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
Gross0.72%
Net0.72%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2016-0.01%1.27%1.53%0.93%3.77%
20150.68%0.26%-1.06%-0.45%-0.59%
20140.81%0.68%-0.23%-0.70%0.54%
20130.85%-0.43%0.51%1.07%2.00%
20122.18%0.59%2.00%0.78%5.66%
20111.29%0.33%-2.36%1.23%0.44%
2010n/a-0.92%1.74%1.21%n/a

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

Portfolio characteristics - as of 12/31/2016BofA ML USD 3Mo Deposit Offered Rate Constant Maturity Index
Number of holdings3951
Number of credit issuers290
Portfolio turnover (last fiscal year)90%%
Effective duration (weighted average) (view definition).24 years.25 years
Effective maturity (weighted average) (view definition)4.43 years.25 years
Yield to maturity (view definition)3.23%1.00%
Average market price (view definition)$100.46$100.00
Average coupon (view definition)3.26%1.00%
Yield to worst (view definition)3.20%1.00%
SEC 30-day yield with waiver (view definition)2.34%
SEC 30-day yield without waiver (view definition)2.34%
Annualized standard deviation, 3 years (view definition)1.42n/a
Portfolio composition as of 12/31/2016Total may not equal 100% due to rounding.
Bank loans37.8%
US Investment grade corporate bonds29.8%
Int'l Investment grade corporate bonds9.7%
Noncorporate securities8.3%
Structured products7.9%
High yield corporate bonds2.0%
Government securities1.7%
Cash and cash equivalents1.7%
Municipal bonds1.1%
Top 10 fixed income holdings as of 12/31/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
United States Treasury Floating Rate Note 0.726 10/31/20181.7%
Wells Fargo & Co. 2.117 10/31/20231.5%
Morgan Stanley 2.282 10/24/20231.2%
Santander UK PLC 1.780 8/24/20181.0%
JPMorgan Chase & Co. 2.112 10/24/20231.0%
NBCUniversal Enterprise Inc. 1.565 4/15/20181.0%
Inter-American Development Bank 1.100 10/15/20200.9%
Statoil ASA 1.343 11/8/20180.9%
BB&T Corp. 1.823 6/15/20180.9%
Electricite de France S.A. 1.341 1/20/20170.8%
Total % Portfolio in Top 10 holdings10.9%

Fixed income sectors as of 12/31/2016

List excludes cash and cash equivalents.

SectorFundBenchmark
Investment grade credits51.6%0.0%
High yield credits32.9%0.0%
Asset-backed securities6.7%0.0%
Emerging markets3.1%0.0%
U.S. Treasury securities1.7%0.0%
MBS and CMOs1.2%0.0%
Municipal bonds1.1%0.0%
Credit quality as of 12/31/2016
RatingFundBenchmark
AAA14.2%100.0%
AA11.3%0.0%
A21.4%0.0%
BBB19.1%0.0%
BB16.6%0.0%
B15.9%0.0%
CCC1.5%0.0%

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 (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
Return of
capital
20160.0000.1750.000
20150.0000.1810.012
20140.0000.1630.035
20130.0000.1670.033
20120.0000.2420.000
20110.0000.1950.000
20100.0000.1790.000
20090.0000.0000.000
20080.0000.0000.000
20070.0000.0000.000
20060.0000.0000.000

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions (if any) is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

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

Roger Early

Roger A. Early, CPA, CFA

Executive Director, Head of Fixed Income Investments, Executive Vice President, Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: February 2010

Years of industry experience: 40

(View bio)


Paul Grillo

Paul Grillo,  CFA

Senior Vice President, Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: February 2010

Years of industry experience: 35

(View bio)


Adam Brown

Adam H. Brown, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: November 2011

Years of industry experience: 18

(View bio)


J. David Hillmeyer

J. David Hillmeyer, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: February 2010

Years of industry experience: 24

(View bio)


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

The table below 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 expenses0.22%
Total annual fund operating expenses0.72%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.72%

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, non-investment-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 derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Because the Fund may invest in bank loans and other direct indebtedness, it is subject to the risk that the fund will not receive payment of principal, interest, and other amounts due in connection with these investments, which primarily depend on the financial condition of the borrower and the lending institution.

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.

All third-party marks cited are the property of their respective owners.

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 01/20/2017)

Institutional ClassPriceNet change
NAV$8.35no chg
Max offer price$8.35n/a

Total net assets (as of 12/31/2016)

$299.4 million all share classes

Overall Morningstar RatingTM

 
Institutional Class shares (as of 12/31/2016)
RatingNo. of funds
Overall3236
3 Yrs3236
5 Yrs3157
Morningstar categoryNontraditional Bond

(View Morningstar disclosure)

Morningstar ranking (as of 12/31/2016)

YTD ranking226 / 353
1 year226 / 353
3 years143 / 236
5 years99 / 157
10 yearsn/a
Morningstar categoryNontraditional Bond

(View Morningstar disclosure)

Lipper ranking (as of 12/31/2016)

YTD ranking2 / 124
1 year2 / 124
3 years7 / 106
5 years1 / 75
10 yearsn/a
Lipper classificationUltra Sht Obligation Fds

(View Lipper disclosure)

Benchmark, peer group

BofA Merrill Lynch U.S. Dollar 3-Month Deposit Offered Rate Constant Maturity Index (view definition)

Morningstar Nontraditional Bond Category (view definition)

Lipper Ultra Short Obligation Funds Average (view definition)

Additional information