Delaware Corporate Bond 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
Fund information
Inception date09/15/1998
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQDGCIX
CUSIP245908751

Institutional Class shares available 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 (01/31/2019)

as of quarter-end (12/31/2018)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.95%-0.05%3.84%3.07%7.64%6.39%09/15/1998
Bloomberg Barclays US Corporate Investment Grade Index2.35%0.75%3.94%3.39%6.12%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-1.41%-3.76%3.01%2.84%7.41%6.26%09/15/1998
Bloomberg Barclays US Corporate Investment Grade Index-0.18%-2.51%3.26%3.28%5.92%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
Gross0.67%
Net0.57%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Nov. 28, 2018 through Nov. 28, 2019. Please see the fee table in the Fund's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2018-2.65%-1.11%1.40%-1.41%-3.76%
20171.84%2.88%1.61%0.93%7.44%
20162.87%3.37%2.09%-2.63%5.70%
20152.70%-2.58%-0.88%-0.92%-1.74%
20143.70%3.60%-0.56%0.23%7.08%
20130.88%-3.45%0.53%1.77%-0.35%
20123.85%3.02%4.90%2.36%14.87%
20111.69%2.21%0.80%2.69%7.57%
20103.95%1.50%6.45%-0.65%11.57%
2009-1.91%14.70%11.73%2.95%29.39%

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

Portfolio characteristics - as of 01/31/2019Bloomberg Barclays US Corporate Investment Grade Index
Number of holdings2475,832
Number of credit issuers152
Portfolio turnover (last fiscal year)158%n/a
Effective duration (weighted average) (view definition)6.75 years7.24 years
Effective maturity (weighted average) (view definition)10.68 years10.84 years
Yield to maturity (view definition)4.85%3.91%
Average market price (view definition)$104.15$101.22
Average coupon (view definition)4.97%4.03%
Yield to worst (view definition)4.72%3.91%
SEC 30-day yield with waiver (view definition)4.40%
SEC 30-day yield without waiver (view definition)4.30%
Annualized standard deviation, 3 years (view definition)3.98n/a
Portfolio composition as of 01/31/2019Total may not equal 100% due to rounding.
Credits95.6%
U.S. government securities4.1%
Municipal bonds0.3%
Top 10 fixed income holdings as of 01/31/2019

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

List excludes cash and cash equivalents.

Holding% of portfolio
Goldman Sachs Group Inc. 6.000 6/15/20201.38%
United States Treasury Note Bond 3.375 11/15/20481.38%
KeyBank NA Cleveland OH 3.400 5/20/20261.29%
BHP Billiton Finance USA Ltd. 6.250 10/19/20751.26%
Microchip Technology Inc. 4.333 6/1/20231.21%
Time Warner Cable LLC 7.300 7/1/20381.17%
AerCap Ireland Capital DAC AerCap Global Aviation Trust 3.650 7/21/20271.15%
Anglo American Capital PLC 4.750 4/10/20271.10%
MPLX LP 4.875 12/1/20241.06%
Charter Communications Operating LLC Charter Communications Operating Capital 5.050 3/30/20291.03%
Total % Portfolio in Top 10 holdings12.03%
Fixed income sectors as of 01/31/2019

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.

SectorFund
Financial institutions34.8%
Communications15.6%
Energy11.3%
Basic industry6.8%
Utility6.2%
Technology6.1%
Consumer cyclical5.3%
Consumer noncyclical3.6%
Noncorporate3.3%
U.S. government2.0%
Capital goods1.7%
Transportation0.7%
Municipal bonds0.3%
Industrial other0.2%
Credit quality as of 01/31/2019
RatingFundBenchmark
AAA4.7%1.9%
AA2.5%8.3%
A18.8%38.3%
BBB59.3%51.5%
BB11.7%0.0%
B3.0%0.0%

Total may not equal 100% due to rounding. The Fund’s 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 Fund’s Statement of Additional Information.

Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20190.0000.020
20180.0000.228
20170.0000.220
20160.0000.207
20150.0010.232
20140.0600.260
20130.0960.271
20120.1890.280
20110.1360.317
20100.2710.341
20090.0000.338

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 available only available to certain investors. See the prospectus for more information.

Mike Wildstein

Michael G. Wildstein, CFA

Executive Director, Head of Credit and Insurance Asset Management

Start date on the Fund: November 2014

Years of industry experience: 17

(View bio)


Roger Early

Roger A. Early, CPA, CFA

Executive Director, Global Co-Head of Fixed Income

Start date on the Fund: May 2007

Years of industry experience: 42

(View bio)


Wayne Anglace

Wayne A. Anglace, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: July 2016

Years of industry experience: 20

(View bio)


Craig Dembeck

Craig C. Dembek, CFA

Executive Director, Global Head of Credit Research

Start date on the Fund: December 2012

Years of industry experience: 24

(View bio)


J. David Hillmeyer

David Hillmeyer, CFA

Executive Director, Head of Multisector/Global Fixed Income — Macquarie Investment Management, Americas

Start date on the Fund: November 2014

Years of industry experience: 26

(View bio)


Kashif Ishaq

Kashif Ishaq 

Senior Vice President, Global Head of Corporate Bond Trading

Start date on the Fund: November 2013

Years of industry experience: 16

(View bio)


Paul Matlack

Paul A. Matlack, CFA

Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

Start date on the Fund: December 2012

Years of industry experience: 33

(View bio)


John McCarthy

John P. McCarthy, CFA

Senior Vice President, Co-Head of High Yield, Senior Portfolio Manager

Start date on the Fund: December 2012

Years of industry experience: 32

(View bio)


Institutional Class shares available 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 fees0.48%
Distribution and service (12b-1) feesnone
Other expenses0.19%
Total annual fund operating expenses0.67%
Fee waivers and expense reimbursements(0.10%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.57%

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

1The Fund’s 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, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.57% of the Fund’s average daily net assets from Jan. 31, 2019 through Jan. 31, 2020. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

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 800 523-1918. 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 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 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.

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.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 02/21/2019)

Institutional ClassPriceNet change
NAV$5.60-0.01
Max offer price$5.60n/a

Total net assets (as of 01/31/2019)

$776.7 million all share classes

Overall Morningstar RatingTM

 
Institutional Class shares (as of 01/31/2019)
RatingNo. of funds
Overall4181
3 Yrs3181
5 Yrs3150
10 Yrs584
Morningstar categoryMorningstar Corporate Bond Category

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 01/31/2019)

YTD ranking12 / 266
1 year126 / 251
3 years95 / 181
5 years80 / 150
10 years12 / 84
Morningstar categoryMorningstar Corporate Bond Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 01/31/2019)

YTD ranking30 / 279
1 year171 / 270
3 years102 / 214
5 years85 / 186
10 years9 / 116
Lipper classificationLipper Corporate Debt Funds BBB-Rated Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Benchmark, peer group

Bloomberg Barclays US Corporate Investment Grade Index (view definition)

Morningstar Corporate Bond Category (view definition)

Lipper Corporate Debt Funds BBB-Rated Average (view definition)

Additional information