Delaware Extended Duration Bond Fund

Objective

Delaware Extended Duration Bond Fund seeks to provide investors with total return.

Strategy

The Fund will primarily invest in long duration investment grade corporate bonds. The Fund may also invest in unrated bonds if we believe their credit quality is comparable to those that have investment grade ratings.

Fund information
Inception date09/15/1998
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQDEEIX
CUSIP245908793

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 (09/30/2017)

as of quarter-end (09/30/2017)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)9.08%3.21%4.93%5.08%9.33%8.36%09/15/1998
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.15%3.21%4.93%5.08%9.33%8.36%09/15/1998

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
Gross0.75%
Net0.71%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursement from Nov. 28, 2016 through Nov. 28, 2017. Please see the fee table in the Fund's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20171.93%4.76%2.15%n/an/a
20165.45%5.21%2.42%-5.38%7.52%
20153.14%-6.86%0.60%-1.22%-4.55%
20146.55%5.58%0.09%3.23%16.21%
2013-0.11%-5.47%-0.48%2.40%-3.78%
20121.26%6.68%5.57%2.35%16.71%
20111.05%2.87%7.87%4.17%16.81%
20103.95%5.03%7.82%-2.64%14.60%
2009-6.19%14.73%14.98%1.26%25.31%
20080.10%-1.73%-8.56%8.25%-2.61%
20071.09%-2.07%1.86%2.25%3.10%

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

Portfolio characteristics - as of 09/30/2017Bloomberg Barclays Long US Corporate Index
Number of holdings1751,732
Number of credit issuers132
Portfolio turnover (last fiscal year)187%%
Effective duration (weighted average) (view definition)14.12 years14.19 years
Effective maturity (weighted average) (view definition)24.01 years23.72 years
Yield to maturity (view definition)4.21%4.18%
Average market price (view definition)$106.90$113.08
Average coupon (view definition)4.76%5.17%
Yield to worst (view definition)4.16%4.18%
SEC 30-day yield with waiver (view definition)3.44%
SEC 30-day yield without waiver (view definition)3.41%
Annualized standard deviation, 3 years (view definition)6.92n/a
Portfolio composition as of 09/30/2017Total may not equal 100% due to rounding.
Credits97.2%
U.S. government securities2.7%
Municipal bonds0.1%
Top 10 fixed income holdings as of 09/30/2017

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

List excludes cash and cash equivalents.

Holding% of portfolio
Siemens Financieringsmaatschappij NV 4.200 3/16/20471.52%
Anheuser-Busch InBev Finance Inc. 4.900 2/1/20461.48%
Bank of America Corp. 4.443 1/20/20481.42%
Eli Lilly & Co. 3.950 5/15/20471.42%
Morgan Stanley 4.375 1/22/20471.35%
Enel Finance International NV 4.750 5/25/20471.33%
Goldman Sachs Group Inc. 5.150 5/22/20451.30%
Airbus SE 3.950 4/10/20471.26%
Kinder Morgan Inc DE 5.050 2/15/20461.24%
JPMorgan Chase & Co. 4.032 7/24/20481.23%
Total % Portfolio in Top 10 holdings13.55%

Fixed income sectors as of 09/30/2017

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.
SectorFundBenchmark
Financial institutions24.9%17.2%
Utility18.3%11.8%
Consumer noncyclical14.7%17.1%
Energy11.2%11.1%
Capital goods7.6%5.2%
Communications7.4%15.3%
Consumer cyclical3.3%6.9%
Noncorporate3.3%0.0%
Basic industry2.9%4.4%
Technology2.3%6.9%
Transportation1.4%3.5%
U.S. government0.4%0.0%
Municipal bonds0.1%0.0%
Credit quality as of 09/30/2017
RatingFundBenchmark
AAA3.4%3.3%
AA6.4%7.9%
A32.9%39.4%
BBB54.9%49.3%
BB2.4%0.0%
B0.1%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
Return of
capital
20170.0000.2020.000
20160.0000.2310.003
20150.0100.2690.000
20140.2950.3010.000
20130.0000.3060.000
20120.4360.3190.000
20110.2660.3440.000
20100.3170.3650.000
20090.0000.3670.000
20080.0000.3180.000
20070.0000.3290.000

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.

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

Wayne Anglace

Wayne A. Anglace, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: January 2017

Years of industry experience: 19

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

Senior Vice President, Senior Portfolio Manager, Senior Structured Products Analyst

Start date on the Fund: January 2017

Years of industry experience: 28

(View bio)


Mike Wildstein

Michael G. Wildstein, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: November 2014

Years of industry experience: 16

(View bio)


Roger Early

Roger A. Early, CPA, CFA

Executive Director, Global Co-Head of Fixed Income — Macquarie Investment Management

Start date on the Fund: May 2007

Years of industry experience: 41

(View bio)


Craig Dembeck

Craig C. Dembek, CFA

Senior Vice President, Head of Credit Research — Macquarie Investment Management, Americas

Start date on the Fund: December 2012

Years of industry experience: 23

(View bio)


J. David Hillmeyer

David Hillmeyer, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: November 2014

Years of industry experience: 24

(View bio)


Kashif Ishaq

Kashif Ishaq 

Senior Vice President, Head of Investment Grade Corporate Bond Trading

Start date on the Fund: November 2013

Years of industry experience: 15

(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: 32

(View bio)


John McCarthy

John P. McCarthy, CFA

Senior Vice President, Senior Portfolio Manager, Co-Head of High Yield — Macquarie Investment Management, Americas

Start date on the Fund: December 2012

Years of industry experience: 30

(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 fees0.54%
Distribution and service (12b-1) feesnone
Other expenses0.21%
Total annual fund operating expenses0.75%
Fee waivers and expense reimbursements(0.04%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.71%

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 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 0.71% of the Fund's average daily net assets from Nov. 28, 2016 through Nov. 28, 2017. 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 800 362-7500. 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 fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund 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.

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.

The Funds are distributed by Delaware Distributors, L.P., an affiliate of Macquarie Investment Management Business Trust (MIMBT), Macquarie Management Holdings, Inc., and Macquarie Group Limited. Macquarie Investment Management (MIM), a member of Macquarie Group, refers to the companies comprising the asset management division of Macquarie Group Limited and its subsidiaries and affiliates worldwide.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 10/20/2017)

Institutional ClassPriceNet change
NAV$6.64-0.04
Max offer price$6.64n/a

Total net assets (as of 09/30/2017)

$685.7 million all share classes

Overall Morningstar RatingTM

 
Institutional Class shares (as of 09/30/2017)
RatingNo. of funds
Overall5174
3 Yrs4174
5 Yrs5145
10 Yrs585
Morningstar categoryCorporate Bond

(View Morningstar disclosure)

Morningstar ranking (as of 09/30/2017)

YTD ranking2 / 229
1 year48 / 227
3 years24 / 174
5 years5 / 145
10 years1 / 85
Morningstar categoryCorporate Bond

(View Morningstar disclosure)

Lipper ranking (as of 09/30/2017)

YTD ranking5 / 263
1 year52 / 261
3 years26 / 204
5 years4 / 173
10 years2 / 113
Lipper classificationCorp Debt BBB Rated Fds

(View Lipper disclosure)

Benchmark, peer group

Bloomberg Barclays Long US Corporate Index (view definition)

Morningstar Corporate Bond Category (view definition)

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

Additional information