Delaware VIP® Investment Grade Series** (formerly, First Investors Life Series Investment Grade Fund)

Key features

  • A high-quality, research-driven corporate bond fund designed for long-term growth
  • Leverages the team’s deep credit expertise and sizable presence in corporate bond market
  • An experienced management team and a time-tested process and philosophy

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 date10/31/2019
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifier
CUSIP246493381

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 (01/31/2020)

as of quarter-end (12/31/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.45% n/an/an/an/a3.30% 10/31/2019
Bloomberg Barclays US Corporate Investment Grade Index2.34%n/an/an/an/a2.93%
ICE BofA US Corporate Index2.38%n/an/an/an/a2.92%
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)n/an/an/an/an/a0.82% 10/31/2019
Bloomberg Barclays US Corporate Investment Grade Indexn/an/an/an/an/a0.57%
ICE BofA US Corporate Indexn/an/an/an/an/a0.53%

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of 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
Gross0.96%
Net0.96%

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.

Please click here to view monthly holdings.

Portfolio characteristics - as of 01/31/2020
Number of holdings204
Market cap (median) Source: FactSetn/a billion
Market cap (weighted average) Source: FactSetn/a billion
Portfolio turnover (last fiscal year)53%
Beta, 3 years (relative to Bloomberg Barclays US Corporate Investment Grade Index) (view definition)n/a
Annualized standard deviation, 3 years (view definition)2.61
Portfolio composition as of 01/31/2020Total may not equal 100% due to rounding.
Credits98.4%
U.S. government securities1.6%
Top 10 holdings as of 01/31/2020

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

List may exclude cash, cash equivalents, and exchange-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
Morgan Stanley1.86%
Credit Suisse Group AG1.73%
Bank of America Corp.1.67%
FOX CORP1.62%
US Bancorp1.46%
Verizon Communications Inc.1.45%
SOUTHERN CALIFORNIA EDISON COMPANY1.34%
Vodafone Group PLC1.30%
AbbVie Inc.1.25%
MPLX LP1.24%
Total % Portfolio in Top 10 holdings14.92%
Top sectors as of 01/31/2020

List may exclude cash, cash equivalents, and exchang-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
Financial institutions28.1%
Utility14.2%
Communications13.3%
Energy11.6%
Consumer noncyclical10.1%
Technology7.5%
Basic industry5.1%
Capital goods4.0%
Consumer cyclical3.1%
Transportation1.5%
U.S. government0.9%
Mike Wildstein

Michael G. Wildstein, CFA

Senior Managing Director, Head of US Credit and Insurance

Start date on the Fund: October 2019

Years of industry experience: 18

(View bio)


Roger Early

Roger A. Early, CPA, CFA

Chief Investment Officer – US Fixed Income

Start date on the Fund: October 2019

Years of industry experience: 43

(View bio)


Paul Matlack

Paul A. Matlack, CFA

Managing Director, Senior Client Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 34

(View bio)


Craig Dembeck

Craig C. Dembek, CFA

Senior Managing Director, Head of Credit Research

Start date on the Fund: October 2019

Years of industry experience: 25

(View bio)


John McCarthy

John P. McCarthy, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 33

(View bio)


Kashif Ishaq

Kashif Ishaq 

Managing Director, Head of Credit Trading, Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 17

(View bio)


J. David Hillmeyer

David Hillmeyer, CFA

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

Start date on the Fund: October 2019

Years of industry experience: 27

(View bio)


Wayne Anglace

Wayne A. Anglace, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 21

(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 fees0.50%
Distribution and service (12b-1) fees0.30%
Other expenses0.16%
Total annual series operating expenses0.96%
Fee waiversnone
Total annual series operating expenses after fee waivers0.96%

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 0.99% 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.

*The Series changed its broad-based securities index to the Bloomberg Barclays US Corporate Investment Grade Index as of Oct. 4, 2019. The Series elected to use the new index because it more closely reflected the Series’ investment strategies.

**On 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), whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts and the First Investors Fund shareholders 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 in the Delaware Funds by Macquarie family of funds. The Transaction closed on Oct. 4, 2019.

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

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.

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 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.

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.

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

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 02/14/2020)

Service ClassPriceNet change
NAV$11.300.02
Max offer price$11.30n/a

Total net assets (as of 01/31/2020)

$62.7 million all share classes

Prospectuses and reports

Benchmark and peer group

Bloomberg Barclays US Corporate Investment Grade Index (view definition)

ICE BofA US Corporate Index (view definition)

Additional information