Delaware VIP® Covered Call Strategy Series** (formerly, First Investors Life Series Covered Call Strategy Fund)

Key features

  • Large-cap equity exposure to help clients participate in market growth and increase their wealth over time
  • Leverages an options-based strategy with the goal of providing downside protection and generating income
  • Seeks more consistent returns with lower volatility to help clients weather market cycles and stay on track for their long-term goals

Objective

Delaware VIP Value Series seeks long-term capital appreciation.

Strategy

The Series invests in securities of large-capitalization companies, seeking consistent long-term performance. The Series follows a traditional value-oriented investment philosophy using a research-based approach.

Series information
Inception date05/02/2016
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifier
CUSIP246493530

Please click below to view Series performance:

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 (10/31/2019)

as of quarter-end (09/30/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)17.37%10.65%6.57%n/an/a6.23%05/02/2016
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.97%1.35%5.87%n/an/a6.06%05/02/2016

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to 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
Gross1.12%
Net0.90%

The performance and expense ratio information shown represent the performance and fees as they relate to actual shares of the Series. These examples do not include any fees or sales charges imposed by the variable insurance contract for which the Series is an investment option. If they were included, your costs would be higher and performance would be lower. Investors should consult the contract prospectus or disclosure documents for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2019n/an/a1.97%n/an/a
2018n/an/an/an/an/a

Please click here to view monthly holdings.

Portfolio characteristics - as of 10/31/2019
Number of holdings74
Market cap (median) Source: FactSet$118.5 billion
Market cap (weighted average) Source: FactSet$252.7 billion
Portfolio turnover (last fiscal year)87%
Beta, 3 years (relative to ) (view definition)n/a
Annualized standard deviation, 3 years (view definition)n/a
Portfolio composition as of 10/31/2019Total may not equal 100% due to rounding.
Domestic equities99.5%
Cash and cash equivalents0.7%
International equities & depositary receipts-0.1%
Top 10 holdings as of 10/31/2019

Holdings are as of the date indicated and subject to change.

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

Holdings based by issuer.

Holding% of portfolio
Apple Inc.5.88%
MICROSOFT CORP5.71%
JPMorgan Chase & Co.4.92%
Medtronic PLC4.79%
Honeywell International Inc.4.48%
Mastercard Inc.4.23%
LOCKHEED MARTIN CORPORATION4.19%
Chevron Corp.3.87%
Cisco Systems Inc.3.83%
COSTCO WHSLE CORP3.72%
Total % Portfolio in Top 10 holdings45.62%
Top sectors as of 10/31/2019

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

Sector% of portfolio
Information technology26.2%
Industrials16.5%
Financials12.8%
Consumer staples12.5%
Healthcare10.9%
Consumer discretionary8.7%
Communication services5.6%
Energy3.9%
Materials3.5%

Investment manager

Delaware Management Company (DMC)

Sub-advisor

Ziegler Capital Management


Wiley Angell

Wiley D. Angell 

Chief Investment Officer, Senior Portfolio Manager — Ziegler Capital Management, LLC

Start date on the Fund: October 2019

Years of industry experience: 34

(View bio)


Sean Hughes

Sean C. Hughes, CFA

Senior Portfolio Manager — Ziegler Capital Management, LLC

Start date on the Fund: October 2019

Years of industry experience: 14

(View bio)


The table below describes the fees and expenses that you may pay if you buy and hold shares of the Series. The fee table and example do not reflect any fees or sales charges imposed by variable insurance contracts. If they did, the expenses would be higher.

Annual series operating expenses
Management fees0.75%
Distribution and service (12b-1) feesnone
Other expenses0.37%
Total annual series operating expenses1.12%
Fee waivers(0.22%)
Total annual series operating expenses after fee waivers0.90%

1The Series’ investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual series operating expenses from exceeding 0.90% of the Series’ average daily net assets from Oct. 4, 2019 through Oct. 31, 2021. These waivers and reimbursements may only be terminated by agreement of the Manager and the Series.

*Effective Oct. 4, 2019, the Fund changed its primary index from the CBOE S&P 500 BuyWrite Index to the S&P 500® Index. The Fund elected to use the new index because it more closely reflected the Fund’s investment strategies.

**April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), a leading global investment management company, whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (Macquarie), would acquire FIMCO's asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund (each, an “Acquiring Fund,” and collectively, the “Acquiring Funds”) in the Delaware Funds by Macquarie family of funds (each, a “Reorganization” and together, the “Reorganizations”). Following the requisite approval of each Reorganization from shareholders of each First Investors Fund, each Acquiring Fund will be managed by DMC and each Acquiring Fund will have the same or substantially the same investment objective and the same or similar principal investment strategies and principal risks as the corresponding First Investors Fund. The Transaction closed on Oct. 4, 2019 (the “Closing Date”). Information, including without limitation historical holdings and performance information, relating to the Acquiring Funds for periods prior to the Closing Date has been provided by FIMCO and is attributable to the Acquired Funds.

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

Ziegler Capital Management, LLC (ZCM), a US registered investment advisor, is the sub-advisor to the Series. As sub-advisor, Ziegler Capital Management, LLC (ZCM) is responsible for day-to-day management of the Series' assets. Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), has ultimate responsibility for all investment advisory services.

Carefully consider the Series' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Series' prospectus and its summary prospectus, which may be obtained by visiting delawarefunds.com/vip/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

The Series may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

Writing call options involves risks, such as potential losses if equity markets or an individual equity security do not move as expected and the potential for greater losses than if these techniques had not been used.

At times, the Fund may not be able to identify attractive dividend-paying stocks. The income received by the Fund will also fluctuate due to the amount of dividends that companies elect to pay, which could adversely affect the Fund’s ability to pay dividends and its share price.

By writing covered call options, the Fund will give up the opportunity to benefit from potential increases in the value of a Fund asset above the exercise price, but will bear the risk of declines in the value of the asset. Writing call options may expose the Fund to significant additional costs. Derivatives may be difficult to sell, unwind or value.

Writing call options may significantly reduce or eliminate the amount of Series dividends that qualify to be taxed to non-corporate shareholders at a lower rate. Covered calls also are subject to federal tax rules that may: (1) limit the allowance of certain losses or deductions by the Series (2) convert the Series’ long-term capital gains into higher taxed short-term capital gains or ordinary income; (3) convert the Series’s ordinary losses or deductions to capital losses, the deductibility of which is more limited; and/or (4) cause the Series to recognize income or gains without a corresponding receipt of cash.

An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.

Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.

“Non-diversified” funds may allocate more of their net assets to investments in single securities than “diversified” funds. Resulting adverse effects may subject these funds to greater risks and volatility.

The Series 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.

Delaware VIP Series refers to Delaware VIP Funds. Delaware VIP Funds are not available for direct investment except for issuers of variable insurance product contracts. They are available only through the purchase of certain variable insurance products.

Fund Finder

Daily pricing (as of 11/21/2019)

Standard ClassPriceNet change
NAV$12.14-0.01
Max offer price$12.14n/a

Total net assets (as of 10/31/2019)

$21.6 million all share classes

Prospectuses and reports

Benchmark and peer group

CBOE S&P 500® BuyWrite Index (view definition)

S&P 500® Index (view definition)

Additional information