Macquarie Delaware Funds by Macquarie Delaware Funds by Macquarie

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 (01/31/2019)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.27%0.03%2.63%2.29%5.46%6.26%12/29/1997
Max offer price-2.37%-4.47%1.05%1.36%4.98%6.02%
Bloomberg Barclays US Aggregate Index1.06%2.25%1.95%2.44%3.68%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.02%-2.23%2.15%2.06%5.31%6.17%12/29/1997
Max offer price-4.51%-6.62%0.60%1.12%4.83%5.94%
Bloomberg Barclays US Aggregate Index1.64%0.01%2.06%2.52%3.48%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
Gross0.89%
Net0.70%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from April 1, 2018 through April 1, 2019. Please see the fee table in the Fund's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2018-0.96%-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 01/31/2019Bloomberg Barclays US Aggregate Index
Number of holdings1,31710,274
Number of credit issuers536
Portfolio turnover (last fiscal year)122%n/a
Effective duration (weighted average) (view definition)6.15 years5.86 years
Effective maturity (weighted average) (view definition)8.59 years8.19 years
Yield to maturity (view definition)4.41%3.16%
Average market price (view definition)$101.85$100.95
Average coupon (view definition)4.41%3.21%
Yield to worst (view definition)4.33%3.15%
SEC 30-day yield with waiver (view definition)4.06%
SEC 30-day yield without waiver (view definition)3.90%
Annualized standard deviation, 3 years (view definition)2.79n/a
Portfolio composition as of 01/31/2019Total may not equal 100% due to rounding.
High grade securities73.8%
High yield securities16.8%
Emerging markets7.6%
International developed1.8%
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
United States Treasury Note Bond 3.125 11/15/20286.09%
United States Treasury Note Bond 2.625 12/31/20233.51%
FG G618091.35%
FNCL 3.5 2/190.90%
FN AL99030.68%
FG G616030.55%
KeyBank NA Cleveland OH 6.950 2/1/20280.54%
USB Capital IX 3.807 10/29/20490.53%
FN BM44950.47%
CVS Health Corp. 4.300 3/25/20280.44%
Total % Portfolio in Top 10 holdings15.06%
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
Investment grade credits33.6%
High yield credits15.6%
MBS and CMOs14.2%
U.S. Treasury securities10.0%
Commercial mortgage-backed securities7.6%
Emerging markets7.6%
Asset-backed securities6.4%
International developed1.8%
Municipal bonds0.1%
Credit quality as of 01/31/2019
RatingFundBenchmark
AAA37.3%72.6%
AA4.1%3.6%
A12.1%10.1%
BBB25.2%13.8%
BB11.1%0.0%
B8.5%0.0%
CCC1.6%0.0%
C0.1%0.0%
D0.0%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 (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income		Return of
capital
20190.0000.0260.000
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.

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)

Roger A. Early biography

Roger Early

Roger A. Early,CPA, CFA

Executive Director, Global Co-Head of Fixed Income

Roger A. Early is global co-head of the firm’s fixed income team. He rejoined Macquarie Investment Management (MIM) in March 2007 as a member of the firm’s taxable fixed income portfolio management team, with primary responsibility for portfolio construction and strategic asset allocation. He became head of fixed income investments in the Americas in February 2015. During his previous time at the firm, from 1994 to 2001, he was a senior portfolio manager in the same area, and he left the firm as head of its US investment grade fixed income group. In recent years, Early was a senior portfolio manager at Chartwell Investment Partners and Rittenhouse Financial and was the chief investment officer for fixed income at Turner Investments. Prior to joining the firm in 1994, he worked for more than 10 years at Federated Investors where he managed more than $25 billion in mutual fund and institutional portfolios in the short-term and investment grade markets. He left the firm as head of institutional fixed income management. Earlier in his career, he held management positions with the Federal Reserve Bank, PNC Financial, Touche Ross, and Rockwell International. Early earned his bachelor’s degree in economics from The Wharton School of the University of Pennsylvania and an MBA with concentrations in finance and accounting from the University of Pittsburgh. He is a member of the CFA Society of Philadelphia.

Paul Grillo

Paul Grillo, CFA

Senior Vice President, Chief Investment Officer — Diversified Income

Start date on the Fund: February 2001

Years of industry experience: 37

(View bio)

Paul Grillo biography

Paul Grillo

Paul Grillo,CFA

Senior Vice President, Chief Investment Officer — Diversified Income

Paul Grillo is a member of the firm’s taxable fixed income portfolio management team with primary responsibility for portfolio construction and strategic asset allocation. He is also a member of the firm’s asset allocation committee, which is responsible for building and managing multi-asset class portfolios. He joined Macquarie Investment Management (MIM) in 1992 as a mortgage-backed and asset-backed securities analyst, assuming portfolio management responsibilities in the mid-1990s. Grillo serves as lead portfolio manager for the firm’s Diversified Income products and has been influential in the growth and distribution of the firm’s multisector strategies. Prior to joining the firm, Grillo was a mortgage strategist and trader at Dreyfus Corporation. He also worked as a mortgage strategist and portfolio manager at Chemical Investment Group and as a financial analyst at Chemical Bank. Grillo holds a bachelor’s degree in business management from North Carolina State University and an MBA with a concentration in finance from Pace University.

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)

Adam H. Brown biography

Adam Brown

Adam H. Brown,CFA

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

Adam H. Brown is a senior portfolio manager and co-head of the firm’s high yield strategies. He manages the bank loan portfolios and is a co-portfolio manager for the high yield, fixed rate multisector, and core plus strategies. Brown joined Macquarie Investment Management (MIM) in April 2011 as part of the firm’s integration of Macquarie Four Corners Capital Management, where he had worked since 2002. At Four Corners, he was a co-portfolio manager on the firm’s collateralized loan obligations (CLOs) and a senior research analyst supporting noninvestment grade portfolios. Before that, Brown was with the predecessor of Wells Fargo Securities, where he worked in the leveraged finance group arranging senior secured bank loans and high yield bond financings for financial sponsors and corporate issuers. He earned a bachelor’s degree in accounting from the University of Florida and an MBA from the A.B. Freeman School of Business at Tulane University.

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)

David Hillmeyer biography

J. David Hillmeyer

David Hillmeyer,CFA

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

J. David Hillmeyer is head of multisector/global fixed income in the Americas. He is co-portfolio manager for the fixed rate diversified multisector, core plus, and investment grade corporate bond strategies. Prior to joining Macquarie Investment Management (MIM) in August 2007 as a vice president and corporate bond trader, he worked for more than 11 years in various roles at Hartford Investment Management Company, including senior corporate bond trader, high yield portfolio manager / trader, and quantitative analyst. He began his career as an investment advisor in January 1989 at Shawmut Bank, leaving the firm as an investment officer in November 1995. Hillmeyer earned his bachelor’s degree from Colorado State University, and he is a member of the CFA Society of Philadelphia and the Philadelphia Council for Business Economics.

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)

John P. McCarthy biography

John McCarthy

John P. McCarthy,CFA

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

John P. McCarthy is a senior portfolio manager and co-head for the firm’s high yield strategies, a role he assumed in July 2016. From December 2012 to June 2016, he was co-head of credit research on the firm’s taxable fixed income team. McCarthy rejoined Macquarie Investment Management (MIM) in March 2007 as a senior research analyst, after he worked in the firm’s fixed income area from 1990 to 2000 as a senior high yield analyst and high yield trader, and from 2001 to 2002 as a municipal bond trader. Prior to rejoining the firm, he was a senior high yield analyst/trader at Chartwell Investment Partners. McCarthy earned a bachelor’s degree in business administration from Babson College, and he is a member of the CFA Society of Philadelphia.

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)

Brian C. McDonnell biography

Brian McDonnell

Brian C. McDonnell,CFA

Executive Director, Head of US Fixed Income

Brian C. McDonnell is a member of the firm’s taxable fixed income portfolio management team with primary responsibility for portfolio construction and strategic asset allocation. He joined Macquarie Investment Management (MIM) in March 2007 as a vice president and senior structured products analyst/trader, assuming portfolio management responsibilities in 2009. Prior to joining the firm, he was a managing director and head of fixed income trading at Sovereign Securities, where he was responsible for risk management and hedging of the firm’s holdings. Earlier in his career, he spent more than 10 years in various fixed income capacities with Prudential Securities in New York. McDonnell has a bachelor’s degree in finance from Boston College, and he is a member of the CFA Society of Philadelphia.

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 fees0.45%
Distribution and service (12b-1) fees0.25%
Other expenses0.19%
Total annual fund operating expenses0.89%
Fee waivers and expense reimbursements(0.19%)
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 April 1, 2018 through April 1, 2019. 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 02/21/2019)

Class APriceNet change
NAV$8.37-0.02
Max offer price$8.76n/a

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

$4.0 billion all share classes

Overall Morningstar RatingTM