Delaware Floating Rate II Fund** (formerly, First Investors Floating Rate Fund)

Key features

  • A floating-rate bank loan fund designed to generate high current income
  • An actively managed portfolio built on a foundation of strong fundamental research
  • Experienced team with an average of nearly 25 years’ industry experience
Fund information
Inception date10/21/2013
Dividends paid (if any)Monthly
Capital gains paid (if any)November or December
Fund identifiers

Class R6 shares are available only to certain investors. See the prospectus for more information.

Please click below to view Fund 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 (02/29/2020)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.59% 3.02% 3.34% 3.32% n/a2.81% 10/21/2013
S&P/LSTA Leveraged Loan Index-0.77%3.48%3.71%3.92%n/a3.78%
Credit Suisse Leveraged Loan Index-0.83%3.25%3.81%4.02%n/a3.93%
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.24% 7.50% 3.69% 3.69% n/a2.98% 10/21/2013
S&P/LSTA Leveraged Loan Index1.73%8.64%4.35%4.45%n/a4.02%
Credit Suisse Leveraged Loan Index1.68%8.17%4.48%4.54%n/a4.18%

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end following 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

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Nov. 29, 2019 through Nov. 29, 2020. Please see the fee table in the Fund's prospectus for more information.

Calendar year total returns @ NAV
YearAnnual return

Class R6 shares are available only to certain investors. See the prospectus for more information.

Please click here to view monthly holdings.

Portfolio characteristics - as of 02/29/2020S&P/LSTA Leveraged Loan Index
Number of holdings1071,439
Number of credit issuers91
Portfolio turnover (last fiscal year)88%%
Effective duration (weighted average) (view definition).99 years .25 years
Effective maturity (weighted average) (view definition)5.29 years 4.79 years
Yield to maturity (view definition)5.49%6.19%
Average market price (view definition) $94.98 $96.23
Average coupon (view definition)4.89%3.29%
Yield to worst (view definition)5.47%6.19%
SEC 30-day yield with waiver (view definition)4.56%
SEC 30-day yield without waiver (view definition)4.63%
Annualized standard deviation, 3 years (view definition)2.43n/a
Portfolio composition as of 02/29/2020Total may not equal 100% due to rounding.
Bank loans92.2%
High yield corporate bonds6.5%
Investment grade corporate bonds1.0%
Cash and cash equivalents0.3%
Top 10 fixed income holdings as of 02/29/2020

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

List excludes cash and cash equivalents.

Holding% of portfolio
Vistra Operations Co. Llc 1.750 12/31/20252.39%
Applied Systems Inc. 8.320 9/19/20251.85%
Panda Liberty Llc 7.500 8/21/20201.82%
hd Supply Inc. 4.030 10/17/20231.80%
Ultimate Software Group Inc. (the) 3.750 5/4/20261.79%
Ensemble Health Partners 3.750 8/1/20261.79%
ZAYO Group Llc (zayo Capital Inc) 3.561 1/19/20241.79%
Esh Hospitality 2.000 9/18/20261.79%
Jbs Usa Lux S.A. 2.000 5/1/20261.78%
Ss&c Technologies Inc. 1.750 4/16/20251.77%
Total % Portfolio in Top 10 holdings18.57%
Fixed income sectors as of 02/29/2020

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.

Telecommunication/cellular communication14.6%
Business equipment and services4.8%
Chemical / plastics4.7%
Oil and gas4.7%
Building and development3.5%
Broadcast radio and television3.4%
Cable television3.2%
Retailers (other than food/drug)2.5%
Containers and glass products2.2%
Hotels/motels/inns and casinos1.8%
Food products1.8%
Food/drug retailers1.6%
Ecological services & equipment1.2%
Food services1.1%
Industrial equipment0.9%
Aerospace and defense0.9%
Forest products0.5%
Surface transportation0.4%
Financial intermediaries0.3%
Credit quality as of 02/29/2020
Not rated1.7%1.4%

Total may not equal 100% due to rounding. The Fund’s investment manager, DMC, 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. 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 J)1,2
Distributions ($ per share)
YearCapital gains3Net investment

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.

Class R6 shares are available only to certain investors. See the prospectus for more information.

Adam Brown

Adam H. Brown, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 21

(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)

Class R6 shares are available only 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 fees0.50%
Distribution and service (12b-1) feesnone
Other expenses0.46%
Total annual fund operating expenses0.96%
Fee waivers and expense reimbursements(0.22%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.74%

Class R6 shares are available only to certain investors. See the prospectus for more information.

1 “Other expenses” for Class R6 are estimated and account for Class R6 shares not being subject to certain expenses as described further in the section of the prospectus entitled “Choosing a share class."

2 The 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 acquired fund fees and expenses, taxes, interest, short sale and dividend 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 0.74% of the Fund’s 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 Fund.

*The Fund changed its broad-based securities index to the S&P/LSTA Leveraged Loan Index as of Oct. 4, 2019. The Fund elected to use the new index because it more closely reflected the Fund’s 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.

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. For investors investing in Delaware Funds by Macquarie (formerly First Investors Funds) please call 800 423-4026. Investors should read the prospectus and the summary prospectus carefully before investing.

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

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.

Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.

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.

Because the Fund may invest in bank loans and other direct indebtedness, it is subject to the risk that the fund will not receive payment of principal, interest, and other amounts due in connection with these investments, which primarily depend on the financial condition of the borrower and the lending institution.

LIBOR risk is the risk that potential changes related to the use of the London Interbank Offered Rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.

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.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 03/30/2020)

Class R6PriceNet change
Max offer price$8.40n/a

Total net assets (as of 02/29/2020)

$83.2 million all share classes

Overall Morningstar RatingTM

Class R6 shares (as of 02/29/2020)
Class R6No. of funds
3 Yrs4221
5 Yrs3197
Morningstar categoryBank Loan

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 02/29/2020)

YTD ranking20 / 248
1 year55 / 242
3 years42 / 221
5 years73 / 197
10 yearsn/a
Morningstar categoryBank Loan

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 02/29/2020)

YTD ranking27 / 251
1 year58 / 245
3 years43 / 220
5 years73 / 194
10 yearsn/a
Lipper classificationLipper Loan Participation Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.


Prospectuses and reports

Benchmark and peer group

Morningstar Bank Loan Category (view definition)

Lipper Loan Participation Funds Average (view definition)

Additional information