Delaware Diversified Income Fund

Key features

  • A flexible core bond fund 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
Fund information
Inception date12/29/1997
Dividends paid (if any)Monthly
Capital gains paid (if any)November or December
Fund identifiers
NASDAQDPDFX
CUSIP246248744
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
Payroll DeductionYes
IRAsYes

On Sept. 25, 2014, Class B shares of the Fund converted to Class A shares.

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 (05/31/2019)

as of quarter-end (03/31/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)6.44%5.98%3.16%2.40%5.13%6.36%12/29/1997
Max offer price1.62%1.18%1.60%1.46%4.64%6.13%
Bloomberg Barclays US Aggregate Index4.80%6.40%2.50%2.70%3.83%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)4.35%3.01%2.81%2.44%5.71%6.31%12/29/1997
Max offer price-0.38%-1.59%1.24%1.49%5.23%6.08%
Bloomberg Barclays US Aggregate Index2.94%4.48%2.03%2.74%3.77%n/a

Returns for less than one year are not annualized.

Class A shares have a maximum up-front sales charge of 4.50% and are subject to an annual distribution fee.

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
Gross0.88%
Net0.70%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Feb. 28, 2019 through Feb. 28, 2020. Please see the fee table in the Fund's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20194.35%n/an/an/an/a
2018-0.96%-1.24%-0.03%-0.02%-2.23%
20171.50%2.00%1.17%0.50%5.26%
20162.35%2.63%1.05%-2.42%3.56%
20151.89%-1.55%-0.28%-1.17%-1.15%
20142.45%2.50%-0.47%0.57%5.11%
20130.32%-3.63%0.83%1.17%-1.37%
20121.29%2.24%2.65%0.55%6.88%
20111.23%2.00%0.79%2.22%6.38%
20103.06%1.09%3.79%-0.32%7.77%
20090.44%10.21%9.67%3.28%25.38%
Portfolio characteristics - as of 05/31/2019Bloomberg Barclays US Aggregate Index
Number of holdings1,00410,479
Number of credit issuers362
Portfolio turnover (last fiscal year)122%n/a
Effective duration (weighted average) (view definition)5.29 years5.73 years
Effective maturity (weighted average) (view definition)7.33 years7.82 years
Yield to maturity (view definition)3.75%2.69%
Average market price (view definition)$101.08$103.66
Average coupon (view definition)4.15%3.23%
Yield to worst (view definition)3.69%2.69%
SEC 30-day yield with waiver (view definition)3.34%
SEC 30-day yield without waiver (view definition)3.17%
Annualized standard deviation, 3 years (view definition)2.99n/a
Portfolio composition as of 05/31/2019Total may not equal 100% due to rounding.
High grade securities82.3%
High yield securities9.8%
Emerging markets7.9%
Top 10 fixed income holdings as of 05/31/2019

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

List excludes cash and cash equivalents.

Holding% of portfolio
Treasury Note 2.125 3/31/202410.77%
Treasury Note 2.625 2/15/20296.51%
Fhlmc Gold 30yr Giant1.45%
Fnma 30yr1.08%
FNCL 3.5 6/190.98%
Fnma 30yr0.81%
wi Treasury Bond 3.000 2/15/20490.79%
Fnma 30yr0.74%
Petroleos Mexicanos 4.625 9/21/20230.74%
Fnma 30yr0.70%
Total % Portfolio in Top 10 holdings24.57%
Fixed income sectors as of 05/31/2019

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
Investment grade credits30.3%
U.S. Treasury securities18.5%
MBS and CMOs16.4%
Commercial mortgage-backed securities8.9%
High yield credits8.4%
Emerging markets7.9%
Asset-backed securities7.2%
Municipal bonds0.1%
Credit quality as of 05/31/2019
RatingFundBenchmark
AAA48.5%72.4%
AA3.2%3.5%
A11.8%10.6%
BBB22.8%13.6%
BB7.0%0.0%
B5.6%0.0%
CCC0.8%0.0%
C0.0%0.0%
D0.0%0.0%
Not rated0.4%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 (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
Return of
capital
20190.0000.1260.000
20180.0000.2560.058
20170.0000.3120.008
20160.0000.2610.013
20150.0000.2840.021
20140.0580.3140.000
20130.0000.2480.083
20120.0900.3410.000
20110.2340.3930.000
20100.3670.4560.000
20090.0680.4840.000

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.

J. David Hillmeyer

David Hillmeyer, CFA

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

Start date on the Fund: February 2011

Years of industry experience: 26

(View bio)


Daniela Mardarovici

Daniela Mardarovici, CFA

Division Director, Co-Head of Multisector/Core Plus Fixed Income — Macquarie Investment Management, Americas

Start date on the Fund: March 2019

Years of industry experience: 18

(View bio)


Roger Early

Roger A. Early, CPA, CFA

Executive Director, Chief Investment Officer of US Fixed Income

Start date on the Fund: May 2007

Years of industry experience: 43

(View bio)


Adam Brown

Adam H. Brown, CFA

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

Start date on the Fund: November 2015

Years of industry experience: 20

(View bio)


John McCarthy

John P. McCarthy, CFA

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

Start date on the Fund: July 2016

Years of industry experience: 32

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

Executive Director, Head of US Fixed Income

Start date on the Fund: February 2015

Years of industry experience: 30

(View bio)


You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Delaware Funds® by Macquarie. More information about these and other discounts is available from your financial intermediary, in the Fund's Prospectus under the section entitled "About your account," and in the Fund's statement of additional information (SAI) under the section entitled "Purchasing Shares."

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 price4.50%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.46%
Distribution and service (12b-1) fees0.25%
Other expenses0.17%
Total annual fund operating expenses0.88%
Fee waivers and expense reimbursements(0.18%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.70%

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 0.45% of the Fund's average daily net assets from Feb. 28, 2019 through Feb. 28, 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 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 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 06/14/2019)

Class APriceNet change
NAV$8.65no chg
Max offer price$9.06n/a

Total net assets (as of 05/31/2019)

$3.7 billion all share classes

Overall Morningstar RatingTM

 
Class A shares (as of 05/31/2019)
Class ANo. of funds
Overall3549
3 Yrs3549
5 Yrs3464
10 Yrs3337
Morningstar categoryIntermediate Core-Plus Bond

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 05/31/2019)

YTD ranking10 / 656
1 year335 / 624
3 years216 / 549
5 years292 / 464
10 years105 / 337
Morningstar categoryIntermediate Core-Plus Bond

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 05/31/2019)

YTD ranking19 / 308
1 year186 / 286
3 years121 / 242
5 years132 / 198
10 years55 / 123
Lipper classificationLipper Core Plus Bond Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Benchmark, peer group

Bloomberg Barclays US Aggregate Index (view definition)

Morningstar Intermediate Core-Plus Bond Category (view definition)

Lipper Core Plus Bond Funds Average (view definition)

Additional information