Delaware VIP® Limited-Term Diversified Income Series


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


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

Series information
Inception date05/01/2000
Dividends paid (if any)Monthly
Capital gains paid (if any)Annually
Series identifier

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)-0.44%1.23%0.89%0.86%2.33%3.64%05/01/2000
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)-0.03%1.92%1.42%0.87%2.51%3.68%05/01/2000
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

Net expense ratio reflects a contractual distribution fee waiver from May 1, 2017 to May 1, 2018. Please see the fee table in the Series' prospectus for more information.

The performance and expense ratio information shown represent the performance and fees as they relate to actual shares of the Series. These examples do not include any fees or sales charges imposed by the variable insurance contract for which the Series is an investment option. If they were included, your costs would be higher and performance would be lower. Investors should consult the contract prospectus or disclosure documents for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 01/31/2018
Number of holdings371
Effective maturity (weighted average) (view definition)4.10 years
Effective duration (weighted average) (view definition)2.63 years
Annualized standard deviation, 3 years (view definition)1.16
SEC 30-day yield with waiver (view definition)1.62%
SEC 30-day yield without waiver (view definition)1.57%
Portfolio turnover (last fiscal year)143%
Portfolio composition as of 01/31/2018Total may not equal 100% due to rounding.
Asset-backed securities29.5%
U.S. nominal treasuries17.6%
MBS and CMOs15.0%
Cash and cash equivalents1.9%
Commercial mortgage-backed securities0.4%
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 11/15/20277.91%
United States Treasury Floating Rate Note 1.430 1/31/20205.63%
United States Treasury Floating Rate Note 1.478 10/31/20194.04%
FN AL91283.41%
FN AL99032.79%
FORDF 2015-2 A21.85%
CCCIT 2017-A7 A71.36%
CCCIT 2017-A5 A51.22%
MBMOT 2015-BA A1.17%
CHAIT 2016-A3 A31.12%
Total % Portfolio in Top 10 holdings30.50%

Top 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.
Sector% of portfolio
Investment grade credits34.6%
Asset-backed securities29.5%
U.S. Treasury securities17.6%
MBS and CMOs15.0%
High yield credits0.6%
Commercial mortgage-backed securities0.4%
Municipal bonds0.3%
Emerging markets0.2%
Credit quality as of 01/31/2018

Total may not equal 100% due to rounding. The Series’ 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 Series’ Statement of Additional 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: May 2007

Years of industry experience: 36

(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)

The following table describes the fees and expenses that you may pay if you buy and hold shares of the Series. The fee table does not reflect any fees or sales charges imposed by variable insurance contracts. If it did, the expenses would be higher.

Annual series operating expenses
Management fees0.48%
Distribution and service (12b-1) fees0.30%
Other expenses0.07%
Total annual series operating expenses0.85%
Fee waivers and expense reimbursements(0.05%)
Total annual series operating expenses after fee waivers and expense reimbursements0.80%

1The Series' distributor, Delaware Distributors, L.P. (Distributor), has contracted to limit the 12b-1 fees to no more than 0.25% 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 Series.

Carefully consider the Series' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Series' prospectus and its summary prospectus, which may be obtained by visiting 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 portfolios 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 Series may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Series may be prepaid prior to maturity, potentially forcing the Series to reinvest that money at a lower interest rate.

If and when the Series invests in forward foreign currency contracts or use other investments to hedge against currency risks, the Series will be subject to special risks, including counterparty risk.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. Adverse conditions may affect the issuer's ability to pay interest and principal on these securities.

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 Series to obtain precise valuations of the high yield securities in its portfolio.

The Series 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.

The Series may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

All third-party marks cited are the property of their respective owners.

Delaware VIP Series refers to Delaware VIP Funds. Delaware VIP Funds are not available for direct investment except for issuers of variable insurance product contracts. They are only available through the purchase of certain variable insurance products.

The Series is 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.

Fund Finder

Daily pricing (as of 02/16/2018)

Service ClassPriceNet change
Max offer price$9.66n/a

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

$1.4 billion all share classes

Benchmark, peer group

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

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

Additional information