Think Diversified Income

Think your portfolio
will stand against the tide?

Think again.

Think Diversified Income

Explore now

All-weather fixed income anchor, intended to weather market cycles

Opportunity

Maximizing opportunity across
levers and universe

Learn how

Agility

Agile investing anchored
in evidence

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Discipline

Confident standing
against the tide

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Client-centric portfolio design

An approach that focuses on bond-by-bond portfolio construction, uses duration as risk mitigation tool (+/- 25%), and has a transparent portfolio structure

Core (60 – 95%)
  • Treasurys
  • Securitized
  • Investment grade corporates
  • Floating-rate notes
  • Treasury inflation-protected securities (TIPS)
Structural Plus (5 – 35%)
  • High yield
  • Emerging markets
Tactical Plus (0 – 20%)
  • Non-dollar
  • Bank loans
  • Convertibles

A time-tested, evidence-based approach

Morningstar Morningstar Morningstar Morningstar
Morningstar rating
As of March 31, 2022
(View Morningstar disclosure)
The Morningstar rating is based on risk-adjusted returns.
1997Fund Inception 
3.04%SEC 30-day yield1 
 
5thPercentile2Risk adjusted returnInformation ratio since inception Nov. 1, 2002
(View Morningstar disclosure)
The Morningstar ranking is based on historical returns.

1 As of March 31, 2022. SEC 30-day yield shows the rate of return (dividends and interest, less expenses) on a fund's offering price over a trailing 30-day period. The Fund's SEC 30-day yield without waiver for the Institutional Class shares and Class A shares was 2.85% and 2.48% respectively.

2 As of March 31, 2022 Overall Morningstar Rating: 4/5 (Number of Investments: 602), 3-Year Rating: 4/5 (Number of Investments: 569), 5-Year Rating: 4/5 (Number of Investments: 502), 10-Year Rating: 4/5 (Number of Investments: 353) Morningstar Total Return Abs Rankings: 1-Year: 335/602, 3-Year: 72/569, 5-Year: 79/502, 10-Year: 98/356 Morningstar Category: Intermediate Core-Plus Bond

Hear the latest quarterly update from the portfolio team

A deliberate and transparent strategy

True to style

Hover or tap over the chart below to see specific information about the data.

Philosophy | 2020 as a litmus test

  • Pre-pandemic low spread/high liquidity
  • Peak pandemic uncertainty
  • Post stimulus - wide, but rapidly tightening
  • Exit recessionary levels, return to long-term average
  • Optimism-fueled compression to tights
  • Lowering risk in decade plus, peak liquid capital
  • Capture dislocation, prioritize visibility
  • Broaden opportunity set, to HY, EM, securitized credit
  • Pause total risk add, optimize relative exposure, - RIMBS vs. HQ IG
  • Barbell increase liquid capital, maintain high potential reflation

Source: Bloomberg, Macquarie

Navigating choppy, uncertain markets

DPFFX rolling 10-year returns versus its benchmark

Steadily navigating choppy, uncertain markets

Source: Morningstar. Rolling 10 year returns (using monthly data) from Nov. 1, 2002 - March 31, 2022. Past performance does not guarantee future results. SEC 30-day yield shows the rate of return (dividends and interest, less expenses) on a fund’s offering price over a trailing 30-day period. The Fund's SEC 30-day yield without waiver for the Institutional Class shares, Class A shares, Class R shares, and Class R6 shares was 1.96%, 1.63%, 1.45%, and 2.04%, respectively. Chart is for illustrative purposes only.

Active allocation at work

The portfolio management team takes an active risk allocation approach designed to maximize opportunities across alpha levers and a 20,000+ security universe.

True-to-style

Chart is for illustrative purposes only. Fund allocations between Dec. 31, 2007 and March 31, 2022.

Diversified Income is the ultimate team sport

People who love what they do are the best stewards for client assets. A passionate team fueled by diversity of thought and perspective allows us to challenge convention and deliver funds managed with the client in mind.

  • 20+
    years' average industry experience
  • 115+
    investment professionals
  • 54%
    diverse hires in the last three years*
  • 4
    investment hubs across
    3
    continents

* Global Fixed Income hires from March 1, 2019 through March 1, 2022. Diverse is defined as female and/or ethnically diverse. Does not include non-employees, co-ops, or interns.

Daniela Mardarovici

Daniela Mardarovici, CFA

  • Co-Head of US Multisector Fixed Income
    Start date on the Fund: March, 2019
    Years of industry experience: 21
David Hillmeyer

David Hillmeyer, CFA

  • Co-Head of US Multisector Fixed Income
    Start date on the Fund: February 2011
    Years of industry experience: 29

Interested in learning more?

Contact a Delaware Funds® by Macquarie regional director at 877 693-3546 or visit the product page:

Delaware Diversified Income Fund

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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 summary prospectus, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and summary prospectus carefully before investing.

Past performance does not guarantee future results.

Investing involves risk, including the possible loss of principal.

© 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Morningstar Rank is the total return percentile rank within each Morningstar Category. The highest (or most favorable) percentile rank is zero and the lowest (or least favorable) percentile rank is 100. Historical percentile ranks are based on a snapshot of a fund at the time of calculation. Percentile Rank is a standardized way of ranking items within a peer group, in this case, funds within the same Morningstar Category. The observation with the largest numerical value is ranked one the observation with the smallest numerical value is ranked 100. The remaining observations are placed equal distance from one another on the rating scale. Note that lower percentile ranks are generally more favorable for returns (high returns), while higher percentile ranks are generally more favorable for risk measures (low risk).

The Fund's investment manager, Delaware Management Company (Manager), may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Europe Limited (MIMEL), Macquarie Investment Management Austria Kapitalanlage AG (MIMAK), and Macquarie Investment Management Global Limited (MIMGL) (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.

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 bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have 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 the Fund to obtain precise valuations of the high yield securities in its portfolio.

The Fund 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 Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.

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

International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.

IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.

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

For financial professional use only. Not for use with the general public.

© 2022 Macquarie Management Holdings, Inc.

[2165262] 4/2022

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

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