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 — the 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 (if any)Monthly
Capital gains paid (if any)November or December
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 (07/31/2016)

as of quarter-end (06/30/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)6.30%4.44%4.03%3.51%6.37%6.86%10/28/2002
Barclays U.S. Aggregate Index5.98%5.94%4.23%3.57%5.06%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.57%3.65%3.86%3.69%6.41%6.82%10/28/2002
Barclays U.S. Aggregate Index2.21%6.00%4.06%3.76%5.13%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
20162.53%2.57%n/an/an/a
20151.95%-1.49%-0.33%-1.11%-1.01%
20142.40%2.68%-0.41%0.63%5.37%
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%

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

Portfolio characteristics - as of 07/31/2016Barclays U.S. Aggregate Index
Number of holdings1,3959,864
Number of credit issuers430
Portfolio turnover (last fiscal year)218%n/a
Effective duration (weighted average) (view definition)5.57 years5.47 years
Effective maturity (weighted average) (view definition)7.32 years7.68 years
Yield to maturity (view definition)3.28%1.87%
Average market price (view definition)$106.78$107.47
Average coupon (view definition)4.38%3.12%
Yield to worst (view definition)3.24%1.86%
SEC 30-day yield with waiver (view definition)2.78%
SEC 30-day yield without waiver (view definition)2.78%
Annualized standard deviation, 3 years (view definition)2.92n/a
Portfolio composition as of 07/31/2016Total may not equal 100% due to rounding.
High grade securities76.0%
High yield securities14.4%
Emerging markets7.4%
International developed2.2%
Top 10 fixed income holdings as of 07/31/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
FNCL OCT TBA2.7%
FNCL AUG TBA1.4%
Dow Chemical Co. 8.550 5/15/20190.8%
Anheuser-Busch InBev Finance Inc. 3.650 2/1/20260.6%
Bank of America Corp. 4.450 3/3/20260.6%
Crown Castle Towers LLC 4.883 8/15/20200.6%
FNCL AX53160.5%
KeyBank NA/Cleveland OH 6.950 2/1/20280.5%
USB Capital IX 3.500 10/29/20490.5%
GNR 2010-113 KE0.5%
Total % Portfolio in Top 10 holdings8.7%

Fixed income sectors as of 07/31/2016

List excludes cash and cash equivalents.

SectorFundBenchmark
Investment grade credits37.6%31.4%
MBS and CMOs25.4%27.6%
High yield credits13.7%0.0%
Emerging markets7.4%0.0%
Commercial mortgage-backed securities6.9%1.7%
Asset-backed securities5.4%0.5%
International developed2.2%0.0%
Municipal bonds0.4%0.0%
U.S. Treasury securities0.4%36.5%
Credit quality as of 07/31/2016
RatingFundBenchmark
AAA36.5%70.5%
AA5.3%4.5%
A14.7%11.2%
BBB25.6%13.8%
BB9.8%0.0%
B7.1%0.0%
CCC1.0%0.0%
Not rated0.1%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 (S&P), Moody’s Investors Service, and Fitch, 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 securiti