Delaware Dividend Income Fund

Objective

Delaware Dividend Income Fund seeks to provide high current income and an investment that has the potential for capital appreciation.

Strategy

The Fund invests primarily in income generating securities (debt and equity), which may include equity securities of large, well-established companies, and debt securities, including high yield, high-risk corporate bonds, investment grade fixed income securities, and U.S. government securities.

Fund information
Inception date12/02/1996
Dividends paid (if any)Monthly
Capital gains paid (if any)November or December
Fund identifiers
NASDAQDDIIX
CUSIP24610B404

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 (04/30/2016)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.72%-1.82%5.62%6.90%5.65%7.92%12/02/1996
S&P 500 60% / Barclay Agg 40% Monthly2.50%2.05%7.76%8.20%6.43%n/a
S&P 500 Index1.74%1.21%11.26%11.02%6.91%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.01%-2.83%5.80%7.11%5.56%7.86%12/02/1996
S&P 500 60% / Barclay Agg 40% Monthly2.11%2.09%8.18%8.61%6.47%n/a
S&P 500 Indexn/a1.78%11.82%11.58%7.01%n/a

Returns for less than one year are not annualized.

The primary benchmark index for the Fund has been changed to a blended index to better reflect the nature of the underlying securities held by the Fund.

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
Gross0.83%
Net0.83%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20161.01%n/an/an/an/a
20151.46%-1.85%-5.37%3.56%-2.40%
20142.67%4.34%-0.60%1.63%8.22%
20138.11%1.40%3.21%6.06%20.00%
20127.59%-0.51%4.31%2.05%13.93%
20115.92%0.45%-11.34%8.49%2.34%
20104.10%-5.70%8.72%6.61%13.78%
2009-3.61%15.66%14.78%6.88%36.76%
2008-6.30%-2.96%-8.23%-18.88%-32.31%
20071.81%1.98%-1.50%-5.82%-3.69%
20065.68%0.23%6.01%6.71%19.84%

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

Portfolio characteristics - as of 04/30/2016S&P 500 60% / Barclay Agg 40% Monthly
Number of holdings439n/a
Market cap (median)$11.94 billionn/a
Market cap (weighted average)$73.21 billionn/a
Portfolio turnover (last fiscal year)67%%
Beta, 3 years (relative to S&P 500 60% / Barclay Agg 40% Monthly) (view definition)1.06n/a
SEC 30-day yield with waiver (view definition)2.45%
SEC 30-day yield without waiver (view definition)2.45%
Annualized standard deviation, 3 years (view definition)7.56n/a
Portfolio composition as of 04/30/2016Total may not equal 100% due to rounding.
Large-cap value43.9%
High yield13.4%
Cash and cash equivalents12.1%
Convertibles9.0%
REITs6.5%
Investment grade4.9%
Opportunistic4.4%
International equity3.9%
Municipal1.1%
International fixed income0.8%
Top 10 equity holdings as of 04/30/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Quest Diagnostics Inc.1.5%
Johnson & Johnson1.4%
ConocoPhillips1.4%
Halliburton Co.1.4%
Archer-Daniels-Midland Co.1.4%
Bank of New York Mellon Corp.1.4%
Occidental Petroleum Corp.1.4%
Chevron Corp.1.4%
Johnson Controls Inc.1.4%
Northrop Grumman Corp.1.4%
Total % Portfolio in Top 10 holdings14.1%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20160.0000.089
20150.0000.361
20140.0000.375
20130.0000.310
20120.0000.383
20110.0000.378
20100.0000.394
20090.0000.420
20080.0000.530
20070.3360.505
20060.0610.444

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. 

Bob Zenouzi

Bob Zenouzi 

Senior Vice President, Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

Start date on the Fund: May 2006

Years of industry experience: 29

(View bio)


Damon Andres

Damon J. Andres, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: December 1996

Years of industry experience: 25

(View bio)


Bob Zenouzi and Damon Andres have primary responsibility for making day-to-day investment decisions for the Fund. As in the past, when making decisions for the Fund, Zenouzi and Andres consult regularly with members of the Delaware Investments Large-Cap Value and Global and International Equity teams for the equity portion of the Fund, and with the Fixed Income team for the fixed income portion of the Fund.

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 fees0.63%
Distribution and service (12b-1) feesnone
Other expenses0.20%
Total annual fund operating expenses0.83%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.83%

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

View printable commentary E-mail this page

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Delaware Dividend Income Fund Quarterly commentary March 31, 2016

Overview

The disparity of returns in U.S. equities continued over the first three months of 2016, as large-cap and small-cap stocks, as measured by the S&P 500® Index and the Russell 2000® Index, respectively, returned 1.35% and -1.53% for the first quarter, while international developed markets (MSCI EAFE Index) returned -3.01%. Real estate investment trusts (REITs), as measured by the FTSE NAREIT Equity REITs Index, outperformed with a 6.00% gain.

Fixed income assets posted solid gains, with U.S. high yield bonds (BofA Merrill Lynch U.S. High Yield Constrained Index) and investment grade U.S. corporate bonds (BofA Merrill Lynch U.S. Corporate Index) returning 3.25% and 3.92%, respectively, over the same period. The U.S. convertible market, as measured by the BofA Merrill Lynch All U.S. Convertibles Index, finished the first quarter with a return of -1.56%.

Within the Fund

For the first quarter of 2016, Delaware Dividend Income Fund (Institutional Class shares and Class A shares at net asset value) underperformed its primary benchmark, a blend of 60% S&P 500 Index / 40% Barclays U.S. Aggregate Index, and also underperformed the S&P 500 Index.

  • The Fund’s international value equity allocation detracted from relative performance as non-U.S. securities trailed the U.S. broad market in the first quarter.
  • Exposure to convertibles was another source of negative attribution for the Fund during the quarter.
  • High yield bond positions also had a negative effect on the Fund’s relative performance during the quarter. Among sectors, the largest detractors on a relative basis were basic industry, energy, and banking.
  • The Fund’s investment in large-cap value equities, which constituted approximately 41% of the portfolio, was a modest detractor from performance. Sector allocation had a positive effect, while stock selection had a negative effect.
  • The Fund’s investments in REITs and investment grade bonds contributed the most to relative performance during the quarter. On average, the returns of these asset classes in the Fund outpaced the returns of the blended benchmark and the S&P 500 Index during the period.

Outlook

As we head further into 2016, our goal is to continue maintaining a certain degree of defensiveness while maintaining our process of investing in different income-generating asset classes, taking positions up and down the capital structure, and seeking opportunities across multiple geographies. We believe this approach has the potential to provide a yield that is competitive with fixed income securities (with better upside potential) while providing a premium yield to equities (with better downside protection). We also believe this approach makes sense for some investors because it may help them establish a plan to (1) meet the essentials of their daily lives, (2) live according to their preferred lifestyles, and (3) maintain a cushion for the unexpected.

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure equity market performance of developed markets, excluding the United States and Canada.

The FTSE NAREIT Equity REITs Index measures the performance of all publicly traded equity real estate investment trusts (REITs) traded on U.S. exchanges, excluding timber and infrastructure REITs.

The BofA Merrill Lynch U.S. High Yield Constrained Index tracks the performance of U.S. dollar–denominated high yield corporate debt publicly issued in the U.S. domestic market, but caps individual issuer exposure at 2% of the benchmark.

The BofA Merrill Lynch U.S. Corporate Index tracks the performance of U.S. dollar–denominated investment grade corporate debt publicly issued in the U.S. domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule, and a minimum amount outstanding of $250 million.

The BofA Merrill Lynch All U.S. Convertibles Index tracks the performance of domestic corporate convertible bonds and convertible preferred stock issues of all qualities that have a market value of $50 million or more at issuance.

[16597]

The views expressed represent the Manager's assessment of the Fund and market environment as of the date indicated, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Information is as of the date indicated and subject to change.

Document must be used in its entirety.

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.

The Fund may invest up to 45% of its net assets in high yield, higher-risk corporate bonds.

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.

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 05/25/2016)

Institutional ClassPriceNet change
NAV$13.350.05
Max offer price$13.35n/a

Total net assets (as of 04/30/2016)

$696.2 million all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 04/30/2016)
RatingNo. of funds
Overall4390
3 Yrs4390
5 Yrs5323
10 Yrs4236
Morningstar categoryAllocation--70% to 85% Equity

(View Morningstar disclosure)

Lipper ranking (as of 04/30/2016)

YTD ranking262 / 670
1 year144 / 591
3 years49 / 436
5 years23 / 296
10 years18 / 136
Lipper classificationFlexible Portfolio Funds

(View Lipper disclosure)

Benchmark, peer group

60% S&P 500® Index / 40% Barclays U.S. Aggregate Index (Primary) (view definition)

S&P 500® Index (Secondary) (view definition)

Lipper Flexible Portfolio Funds Average (view definition)

Additional information