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 (05/31/2016)

as of quarter-end (03/31/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.45%0.48%2.35%3.23%6.21%6.74%10/28/2002
Barclays U.S. Aggregate Index3.45%2.99%2.91%3.33%4.97%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.53%-0.45%1.78%3.59%6.17%6.75%10/28/2002
Barclays U.S. Aggregate Index3.03%1.96%2.50%3.78%4.89%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%n/an/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 05/31/2016Barclays U.S. Aggregate Index
Number of holdings1,3979,796
Number of credit issuers417
Portfolio turnover (last fiscal year)218%n/a
Effective duration (weighted average) (view definition)5.26 years5.53 years
Effective maturity (weighted average) (view definition)7.36 years7.85 years
Yield to maturity (view definition)3.44%2.20%
Average market price (view definition)$104.36$105.42
Average coupon (view definition)4.33%3.14%
Yield to worst (view definition)3.42%2.20%
SEC 30-day yield with waiver (view definition)2.71%
SEC 30-day yield without waiver (view definition)2.71%
Annualized standard deviation, 3 years (view definition)3.31n/a
Portfolio composition as of 05/31/2016Total may not equal 100% due to rounding.
High grade securities76.8%
High yield securities14.1%
Emerging markets7.2%
International developed1.9%
Top 10 fixed income holdings as of 05/31/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
FNCL JUL TBA9.3%
FNCL AX53161.0%
Dow Chemical Co. 8.550 5/15/20190.8%
United States Treasury Note/Bond 1.375 4/30/20210.7%
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 8/15/20200.5%
GNR 2010-113 KE0.4%
KeyBank NA/Cleveland OH 6.950 2/1/20280.4%
USB Capital IX 3.500 10/29/20490.4%
Total % Portfolio in Top 10 holdings14.7%

Fixed income sectors as of 05/31/2016

List excludes cash and cash equivalents.

SectorFundBenchmark
Investment grade credits33.6%30.8%
MBS and CMOs30.3%28.1%
High yield credits13.4%0.0%
Emerging markets7.2%0.0%
Commercial mortgage-backed securities6.4%1.7%
Asset-backed securities5.4%0.5%
International developed1.9%0.0%
U.S. Treasury securities1.2%36.3%
Municipal bonds0.5%0.0%
Credit quality as of 05/31/2016
RatingFundBenchmark
AAA40.6%71.0%
AA4.5%4.4%
A13.9%11.2%
BBB23.8%13.4%
BB9.6%0.0%
B6.5%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 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
20160.0000.1390.000
20150.0000.3050.022
20140.0600.3350.000
20130.0000.2650.088
20120.0900.3650.000
20110.2340.4160.000
20100.3670.4800.000
20090.0680.5060.000
20080.0000.5420.000
20070.0810.5360.000
20060.0000.4780.000

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: May 2007

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 2001

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 2015

Years of industry experience: 18

(View bio)


Wen-Dar Chen

Wen-Dar Chen, Ph.D.

Vice President, Portfolio Manager — International Debt

Start date on the Fund: May 2007

Years of industry experience: 30

(View bio)