Delaware VIP® Diversified Income Series

Key features

  • A flexible core bond portfolio designed to weather market cycles
  • An actively managed bond portfolio emphasizing risk control and income generation
  • An experienced management team with nearly 30 years of industry experience
Series information
Inception date05/16/2003
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifier
CUSIP246493555

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)10.19%11.42%3.47%2.79%4.07%5.16%05/16/2003
Bloomberg Barclays US Aggregate Index8.85%11.51%3.29%3.24%3.73%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.12%9.88%3.11%2.91%4.14%5.16%05/16/2003
Bloomberg Barclays US Aggregate Index2.27%10.30%2.92%3.38%3.75%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
Gross0.95%
Net0.90%

Net expense ratio reflects a contractual distribution fee waiver from April 30, 2019 through April 30, 2020. Please see the fee table in the Series' prospectus for more information.

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
20194.13%3.23%2.12%n/an/a
2018-1.05%-1.35%0.00%0.10%-2.29%
20171.47%1.79%1.17%0.38%4.89%
20162.45%2.40%1.06%-2.57%3.28%
20151.86%-1.72%-0.29%-1.16%-1.34%
20142.29%2.44%-0.47%0.65%4.98%
20130.36%-3.47%0.68%1.06%-1.42%
20121.37%2.27%2.62%0.46%6.87%
20111.07%2.06%0.56%2.33%6.15%
20103.11%1.07%3.87%-0.36%7.87%
20090.65%10.74%9.99%3.31%26.66%
Portfolio characteristics - as of 10/31/2019
Number of holdings804
Effective maturity (weighted average) (view definition)6.92 years
Effective duration (weighted average) (view definition)5.86 years
Annualized standard deviation, 3 years (view definition)3.07
SEC 30-day yield with waiver (view definition)2.21%
SEC 30-day yield without waiver (view definition)2.16%
Portfolio turnover (last fiscal year)143%
Portfolio composition as of 10/31/2019Total may not equal 100% due to rounding.
High-grade securities85.1%
Emerging markets7.6%
High yield securities7.3%
Top 10 fixed income holdings as of 10/31/2019

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

List excludes cash and cash equivalents.

Holding% of portfolio
wi Treasury Note 1.500 9/30/20249.33%
Treasury Note 1.625 8/15/20296.32%
FN MA36383.78%
FN MA36862.27%
Treasury Note 1.250 1/31/20201.96%
FG G618091.30%
FN MA38350.93%
FN 8908770.90%
FN AL92680.60%
FN BM19480.59%
Total % Portfolio in Top 10 holdings27.98%
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
Investment grade credits29.8%
MBS and CMOs20.8%
U.S. Treasury securities17.7%
Commercial mortgage-backed securities8.5%
Emerging markets7.6%
High yield credits6.5%
Asset-backed securities4.5%
Credit quality as of 10/31/2019
RatingFundBenchmark
AAA52.3%72.4%
AA2.7%3.0%
A11.3%10.7%
BBB22.5%13.9%
BB6.2%0.0%
B4.6%0.0%
CCC0.5%0.0%
C0.0%0.0%
D0.0%0.0%

Total may not equal 100% due to rounding. The Series’ investment manager, Delaware Management Company (DMC), a series of Macquarie Investment 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 Series’ Statement of Additional Information.

J. David Hillmeyer

David Hillmeyer, CFA

Senior Managing Director, Head of Global and Multi-Asset Credit

Start date on the Fund: February 2011

Years of industry experience: 26

(View bio)


Daniela Mardarovici

Daniela Mardarovici, CFA

Managing Director, Co-Head of US Multisector/Core Plus Fixed Income

Start date on the Fund: March 2019

Years of industry experience: 19

(View bio)


Roger Early

Roger A. Early, CPA, CFA

Senior Managing Director, Chief Investment Officer – US Fixed Income

Start date on the Fund: May 2007

Years of industry experience: 43

(View bio)


Adam Brown

Adam H. Brown, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: November 2015

Years of industry experience: 21

(View bio)


John McCarthy

John P. McCarthy, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: July 2016

Years of industry experience: 32

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

Senior Managing Director, Head of US Core Fixed Income

Start date on the Fund: February 2015

Years of industry experience: 30

(View bio)


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

Annual series operating expenses
Management fees0.58%
Distribution and service (12b-1) fees0.30%
Other expenses0.07%
Total annual series operating expenses0.95%
Fee waivers(0.05%)
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 12b-1 fees, 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, conducing shareholder meetings, and liquidations) in order to prevent total annual series operating expenses from exceeding 0.60% of the Series' average daily net assets from April 30, 2019 through April 30, 2020. These waivers and reimbursements may only be terminated by agreement of the Manager and the Series.

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.

The Fund's investment manager, Delaware Management Company (Manager), may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Europe Limited, Macquarie Investment Management Austria Kapitalanlage AG, and Macquarie Investment Management Global Limited (together, the “Affiliated Sub-Advisors”). The Manager may also permit these Affiliated Sub-Advisors to execute Fund security trades on behalf of the Manager and exercise investment discretion for securities in certain markets where DMC believes it will be beneficial to utilize an Affiliated Sub-Advisor’s specialized market knowledge.

Investing involves risk, including the possible loss of principal.

Fixed income securities and bond portfolios 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 Series may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Series may be prepaid prior to maturity, potentially forcing the Series to reinvest that money at a lower interest rate.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for a fund to obtain precise valuations of the high yield securities in its portfolio.

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.

If and when the Series invests in forward foreign currency contracts or use other investments to hedge against currency risks, the Series will be subject to special risks, including counterparty risk.

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

International investments entail risks not ordinarily associated with US 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.

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 11/15/2019)

Service ClassPriceNet change
NAV$10.59no chg
Max offer price$10.59n/a

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

$2.5 billion all share classes

Literature

Prospectuses and reports

Benchmark, peer group

Bloomberg Barclays US Aggregate Index (view definition)

Additional information