Delaware High-Yield Opportunities Fund

Objective

Delaware High-Yield Opportunities Fund seeks total return and, as a secondary objective, high current income.

Strategy

The Fund primarily invests in high yield corporate bonds. The Fund’s manager engages thorough credit research to attempt to capture the high yield bond market’s premium return potential.

Fund information
Inception date12/30/1996
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQDHOIX
CUSIP245908843

Institutional Class shares are 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 (04/30/2017)

as of quarter-end (03/31/2017)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.49%12.04%1.88%5.35%6.19%7.03%12/30/1996
BofA Merrill Lynch U.S. High Yield Constrained Index3.87%13.65%4.79%6.87%7.41%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.25%13.08%1.63%5.33%6.20%7.00%12/30/1996
BofA Merrill Lynch U.S. High Yield Constrained Index2.71%16.87%4.64%6.85%7.43%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
Gross0.89%
Net0.80%

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
20172.25%n/an/an/an/a
20162.61%3.46%5.07%1.75%13.48%
20152.52%-0.26%-5.75%-3.01%-6.52%
20142.83%2.53%-2.19%-3.49%-0.47%
20133.58%-1.59%2.88%4.04%9.10%
20126.92%1.45%4.89%3.48%17.73%
20114.26%0.77%-9.37%7.35%2.20%
20105.30%-0.73%6.70%4.60%16.66%
20095.08%19.54%12.95%5.83%50.12%
2008-2.53%0.84%-7.71%-18.01%-25.61%
20073.11%0.80%-0.50%-1.44%1.92%

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

Portfolio characteristics - as of 04/30/2017BofA Merrill Lynch U.S. High Yield Constrained Index
Number of holdings2021,928
Number of credit issuers164
Portfolio turnover (last fiscal year)109%%
Effective duration (weighted average) (view definition)4.34 years3.99 years
Effective maturity (weighted average) (view definition)6.17 years6.25 years
Yield to maturity (view definition)5.74%6.01%
Average market price (view definition)$104.10$101.43
Average coupon (view definition)6.59%6.46%
Yield to worst (view definition)5.26%5.57%
SEC 30-day yield with waiver (view definition)4.97%
SEC 30-day yield without waiver (view definition)4.81%
Annualized standard deviation, 3 years (view definition)5.99n/a
Portfolio composition as of 04/30/2017Total may not equal 100% due to rounding.
Credits80.0%
Foreign bonds16.8%
Cash and cash equivalents3.2%
Top 10 fixed income holdings as of 04/30/2017
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Prime Security Services Borrower LLC Prime Finance Inc. 9.250 5/15/20231.3%
CSC Holdings LLC 10.875 10/15/20251.0%
VTR Finance BV 6.875 1/15/20241.0%
Boyd Gaming Corp. 6.375 4/1/20261.0%
Freeport-McMoRan Inc. 6.875 2/15/20231.0%
Scientific Games International Inc. 10.000 12/1/20220.9%
HUB International Ltd. 7.875 10/1/20210.9%
Gardner Denver Inc. 6.875 8/15/20210.9%
Sprint Corp. 7.125 6/15/20240.9%
Gray Television Inc. 5.875 7/15/20260.8%
Total % Portfolio in Top 10 holdings9.7%

Fixed income sectors as of 04/30/2017

List excludes cash and cash equivalents.

SectorFundBenchmark
Energy13.8%14.3%
Basic industry12.1%12.2%
Media8.8%11.2%
Healthcare8.0%9.5%
Telecommunications7.4%10.0%
Services7.0%4.8%
Leisure5.5%4.5%
Banking5.1%3.5%
Technology & electric4.9%6.3%
Capital goods4.4%5.3%
Emerging markets3.8%0.0%
Consumer goods3.5%2.6%
Retail3.4%4.6%
Utility3.4%2.6%
Insurance2.3%0.8%
Financial services2.2%3.8%
Transportation0.6%1.1%
Automotive0.6%2.2%
Credit quality as of 04/30/2017
RatingFundBenchmark
AAA3.2%0.3%
BBB2.7%0.0%
BB38.1%48.1%
B43.9%36.9%
CCC12.1%13.9%

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 Financial Services LLC (S&P), Moody’s Investors Service, and Fitch Ratings, 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
20170.0000.0900.000
20160.0000.2120.003
20150.0000.2440.000
20140.0580.2500.000
20130.0000.2860.000
20120.0000.3110.000
20110.0000.3320.000
20100.0000.3580.000
20090.0000.3200.000
20080.0000.3080.000
20070.0000.3480.000

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

Adam Brown

Adam H. Brown, CFA

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

Start date on the Fund: November 2014

Years of industry experience: 18

(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: 22

(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: 31

(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 are 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 fees0.65%
Distribution and service (12b-1) feesnone
Other expenses0.24%
Total annual fund operating expenses0.89%
Fee waivers and expense reimbursements(0.09%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.80%

Institutional Class shares are 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 0.80% 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 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.

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 05/26/2017)

Institutional ClassPriceNet change
NAV$3.86no chg
Max offer price$3.86n/a

Total net assets (as of 04/30/2017)

$291.9 million all share classes

Overall Morningstar RatingTM

 
Institutional Class shares (as of 04/30/2017)
RatingNo. of funds
Overall3599
3 Yrs2599
5 Yrs3474
10 Yrs3323
Morningstar categoryHigh Yield Bond

(View Morningstar disclosure)

Morningstar ranking (as of 04/30/2017)

YTD ranking347 / 724
1 year284 / 697
3 years549 / 599
5 years304 / 474
10 years130 / 323
Morningstar categoryHigh Yield Bond

(View Morningstar disclosure)

Lipper ranking (as of 04/30/2017)

YTD ranking311 / 702
1 year263 / 672
3 years521 / 574
5 years295 / 456
10 years125 / 309
Lipper classificationHigh Yield Funds

(View Lipper disclosure)

Benchmark, peer group

BofA Merrill Lynch US High Yield Constrained Index (view definition)

Morningstar High-Yield Bond Category (view definition)

Lipper High Yield Funds Average (view definition)

Additional information