Delaware Limited-Term Diversified Income Fund

Objective

Delaware Limited-Term Diversified Income Fund seeks maximum total return, consistent with reasonable risk.

Strategy

The Fund invests primarily in investment grade fixed income securities, and maintains an average effective duration from one to three years. The Fund is generally diversified across multiple types of fixed income securities.

Fund information
Inception date06/01/1992
Dividends paid (if any)Monthly
Capital gains paid (if any)November or December
Fund identifiers
NASDAQDTINX
CUSIP245912506

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 (01/31/2018)

as of quarter-end (12/31/2017)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.52%1.66%1.33%1.07%2.72%4.09%06/01/1992
Bloomberg Barclays 1-3 Year US Government/Credit Index-0.27%0.39%0.66%0.78%1.65%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.23%2.39%1.86%1.06%2.96%4.12%06/01/1992
Bloomberg Barclays 1-3 Year US Government/Credit Index-0.21%0.84%0.93%0.84%1.86%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
Gross0.67%
Net0.59%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20170.74%0.92%0.48%0.23%2.39%
20161.38%1.20%0.59%-0.73%2.45%
20151.27%-0.48%0.25%-0.27%0.77%
20140.57%0.77%-0.24%0.33%1.43%
2013-0.22%-2.19%-0.02%0.78%-1.66%
20121.24%1.34%0.60%-0.55%2.64%
20110.14%2.02%1.36%-0.60%2.94%
20101.99%0.25%1.73%-0.04%3.97%
20091.85%4.80%4.42%1.33%12.93%
20082.39%-0.93%0.22%0.69%2.37%

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

Portfolio characteristics - as of 01/31/2018Bloomberg Barclays 1-3 Year US Government/Credit Index
Number of holdings7511,513
Number of credit issuers191
Portfolio turnover (last fiscal year)124%n/a
Effective duration (weighted average) (view definition)2.93 years1.91 years
Effective maturity (weighted average) (view definition)5.82 years1.98 years
Yield to maturity (view definition)2.75%2.27%
Average market price (view definition)$97.49$99.69
Average coupon (view definition)3.14%2.12%
Yield to worst (view definition)2.70%2.27%
SEC 30-day yield with waiver (view definition)2.80%
SEC 30-day yield without waiver (view definition)2.71%
Annualized standard deviation, 3 years (view definition)1.03n/a
Portfolio composition as of 01/31/2018Total may not equal 100% due to rounding.
Credits39.5%
Asset-backed securities28.0%
Mortgage-backed securities17.5%
U.S. government securities/Short term14.6%
Commercial mortgage-backed securities0.3%
Top 10 fixed income holdings as of 01/31/2018

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 2.250 11/15/20277.93%
United States Treasury Floating Rate Note 1.478 10/31/20192.32%
DCENT 2017-A1 A11.91%
CCCIT 2017-A7 A71.62%
United States Treasury Note Bond 2.125 12/31/20221.35%
CHAIT 2013-A9 A1.21%
FN BM19481.12%
AMOT 2015-2 A11.02%
CHAIT 2016-A3 A31.01%
FN AL99030.95%
Total % Portfolio in Top 10 holdings20.44%

Fixed income sectors as of 01/31/2018

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
Investment grade credits31.6%32.3%
Asset-backed securities28.0%0.0%
MBS and CMOs17.6%0.0%
U.S. Treasury securities11.6%62.7%
High yield credits4.8%0.0%
Emerging markets2.8%0.0%
Municipal bonds0.4%0.0%
Commercial mortgage-backed securities0.3%0.0%
Credit quality as of 01/31/2018
RatingFundBenchmark
AAA60.6%71.6%
AA4.0%7.0%
A14.1%11.6%
BBB14.7%9.9%
BB3.2%0.0%
B3.3%0.0%
CCC0.2%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
20180.0000.0150.000
20170.0000.1600.053
20160.0000.1530.012
20150.0000.1420.014
20140.0000.1490.004
20130.0000.0000.153
20120.0150.1880.000
20110.1250.2340.000
20100.0410.2590.000
20090.0000.3490.000
20080.0000.3600.000

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.

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)


Paul Grillo

Paul Grillo, CFA

Senior Vice President, Chief Investment Officer of Total Return Strategies

Start date on the Fund: February 1999

Years of industry experience: 36

(View bio)


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: October 2013

Years of industry experience: 19

(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: July 2016

Years of industry experience: 31

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

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

Start date on the Fund: April 2012

Years of industry experience: 29

(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 fees0.49%
Distribution and service (12b-1) feesnone
Other expenses0.18%
Total annual fund operating expenses0.67%
Fee waivers and expense reimbursements(0.08%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.59%

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

1 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 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 0.59% of the Fund’s average daily net assets from Oct. 5, 2016 through Oct. 5, 2017. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund. Additionally, the Fund’s distributor, Delaware Distributors, L.P. (Distributor), has contracted to limit the Fund’s Class A shares’ 12b-1 fees to no more than 0.15% of average daily net assets from April 29, 2016 through May 1, 2017. This waiver may be terminated only by agreement of the Distributor 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 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.

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 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.

Diversification may not protect against market risk.

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 02/20/2018)

Institutional ClassPriceNet change
NAV$8.36no chg
Max offer price$8.36n/a

Total net assets (as of 01/31/2018)

$738.3 million all share classes

Overall Morningstar RatingTM

 
Institutional Class shares (as of 01/31/2018)
RatingNo. of funds
Overall4463
3 Yrs3463
5 Yrs3396
10 Yrs4256
Morningstar categoryShort-Term Bond

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 01/31/2018)

YTD ranking490 / 562
1 year112 / 514
3 years142 / 463
5 years157 / 396
10 years50 / 256
Morningstar categoryShort-Term Bond

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 01/31/2018)

YTD ranking120 / 201
1 year35 / 180
3 years53 / 162
5 years68 / 135
10 years40 / 84
Lipper classificationSht-Intmt Inv Grade Debt

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Benchmark, peer group

Bloomberg Barclays 1–3 Year US Government/Credit Index (view definition)

Morningstar Short-Term Bond Category (view definition)

Lipper Short-Intermediate Investment Grade Debt Funds Average (view definition)

Additional information