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 (01/31/2017)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.54%3.50%2.52%2.67%5.60%6.48%10/28/2002
Bloomberg Barclays U.S. Aggregate Index0.20%1.45%2.59%2.09%4.37%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-2.35%3.94%2.73%2.83%5.57%6.48%10/28/2002
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.

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%1.22%-2.35%3.94%
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%

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

Portfolio characteristics - as of 01/31/2017Bloomberg Barclays U.S. Aggregate Index
Number of holdings1,35810,166
Number of credit issuers521
Portfolio turnover (last fiscal year)240%n/a
Effective duration (weighted average) (view definition)5.03 years5.95 years
Effective maturity (weighted average) (view definition)8.31 years8.24 years
Yield to maturity (view definition)3.86%2.62%
Average market price (view definition)$103.24$102.61
Average coupon (view definition)4.47%3.07%
Yield to worst (view definition)3.82%2.61%
SEC 30-day yield with waiver (view definition)3.43%
SEC 30-day yield without waiver (view definition)3.43%
Annualized standard deviation, 3 years (view definition)3.08n/a
Portfolio composition as of 01/31/2017Total may not equal 100% due to rounding.
High grade securities67.9%
High yield securities20.7%
Emerging markets9.5%
International developed1.9%
Top 10 fixed income holdings as of 01/31/2017
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
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 3/3/20260.5%
FNCL 4.5 3/170.5%
USB Capital IX 3.500 10/29/20490.5%
KeyBank NA Cleveland OH 6.950 2/1/20280.5%
Georgia-Pacific LLC 8.000 1/15/20240.5%
GN 7366630.4%
Total % Portfolio in Top 10 holdings6.0%

Fixed income sectors as of 01/31/2017

List excludes cash and cash equivalents.

SectorFundBenchmark
Investment grade credits41.8%31.3%
High yield credits19.8%0.0%
MBS and CMOs12.5%28.1%
Emerging markets9.5%0.0%
Commercial mortgage-backed securities7.3%1.7%
Asset-backed securities4.5%0.5%
International developed1.9%0.0%
Treasury inflation-protected securities1.4%0.0%
Municipal bonds0.2%0.0%
U.S. Treasury securities0.1%36.1%
Credit quality as of 01/31/2017
RatingFundBenchmark
AAA24.0%70.9%
AA4.9%4.8%
A16.1%10.6%
BBB30.1%13.8%
BB12.9%0.0%
B10.6%0.0%
CCC1.4%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 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
20170.0000.0270.000
20160.0000.2820.015
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

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