Delaware Diversified Income Fund

Delaware Diversified Income Fund

Key features

A diversified fixed income portfolio, seeking to maximize opportunity in all market cycles

An agile, active investment process that is anchored in evidence and confident standing against the tide

An experienced management team with investment hubs across the globe covering the fixed income universe

Daily pricing as of 06/14/2024

NAV
NAV 1-day net change
Max offer price
$7.60

Total net assets as of 05/31/2024

All share classes
$3.0 billion

Overview

Fund information
Inception date 10/28/2002
Dividends paid (if any) Monthly
Capital gains paid (if any) November or December
Fund identifiers
NASDAQ DPFFX
CUSIP 246248587

Benchmark and peer group

Bloomberg US Aggregate Index (view definition)

Morningstar Intermediate Core-Plus Bond Category (view definition)

Lipper Core Plus Bond Funds Average (view definition)

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 (as applicable) 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 (05/31/2024)

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.

Average annual total return as of quarter-end (03/31/2024)

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.

Overall Morningstar RatingTM

Institutional Class shares - as of 05/31/2024

MorningstarMorningstarMorningstar
Rating No. of funds
Overall 3 554
3 years 3 554
5 years 4 526
10 years 3 374
Morningstar category Intermediate Core-Plus Bond

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 05/31/2024
1 year 270 / 624
3 years 244 / 554
5 years 106 / 526
10 years 95 / 374
Morningstar category Intermediate Core-Plus Bond

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 05/31/2024
1 year 147 / 335
3 years 147 / 305
5 years 66 / 284
10 years 51 / 184
Lipper classification Lipper Core Plus Bond Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
0.62%
Net
0.45%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from February 27, 2024 through February 26, 2025. Please see the fee table in the Fund's prospectus for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2023
6.52%
2022
-13.70%
2021
-0.94%
2020
10.94%
2019
10.90%
2018
-1.98%
2017
5.51%
2016
3.94%
2015
-1.01%
2014
5.37%

Portfolio

Portfolio characteristics as of 05/31/2024

Number of holdings
824
Number of credit issuers
486
Portfolio turnover (last fiscal year)
107%
Effective duration (weighted average) (view definition)
6.45 years
Effective maturity (weighted average) (view definition)
8.20 years
Yield to maturity (view definition)
5.58%
Average market price (view definition)
$94.11
Average coupon (view definition)
4.29%
Yield to worst (view definition)
5.46%
SEC 30-day yield with waiver (view definition)
4.55%
SEC 30-day yield without waiver (view definition)
4.37%
Annualized standard deviation, 3 years (view definition)
8.21

Portfolio composition as of 05/31/2024
Total may not equal 100% due to rounding.

High grade securities
89.0%
High yield securities
6.0%
Emerging markets
4.1%
International developed
0.8%

Top 10 fixed income holdings as of 05/31/2024

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
TREASURY NOTE
3.19
TREASURY NOTE
2.60
TREASURY NOTE
2.27
TREASURY NOTE
1.84
TREASURY NOTE
1.71
TREASURY BOND
1.28
FR SD8257
1.15
FR SD8329
0.97
FN MA4784
0.89
FR SD3685
0.87

Total % Portfolio in Top 10 holdings - 16.77%

List of monthly holdingsList of quarterly holdings

Fixed income sectors as of 05/31/2024

List may exclude cash, cash equivalents, and exchange-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

Sector
Fund
Sector
Fund
RMBS
30.5%
Investment grade corporates
26.4%
U.S. Treasury securities
18.1%
Commercial mortgage-backed securities
8.4%
Asset-backed securities/CLO
4.3%
Emerging markets
4.1%
High yield corporates
3.4%
Bank loans
2.2%
Government related
0.9%
Tax exempt municipals
0.1%
Other
0.1%

Credit quality as of 05/31/2024

Rating
Fund
Rating
Fund
AAA
12.9%
AA
47.4%
A
10.9%
BBB
20.6%
BB
4.4%
B
2.4%
CCC
0.8%
CC
0.0%
C
0.0%
D
0.0%
Not rated
0.8%

Total may not equal 100% due to rounding. The Fund’s investment manager, Delaware Management Company (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 NSRO ratings and the index credit quality rules. 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)

Year
Capital gains3
Net investment income
Return of capital
Year
Capital gains3
Net investment income
Return of capital
2024
0.000
0.131
0.000
2023
0.000
0.319
0.000
2022
0.000
0.285
0.000
2021
0.062
0.249
0.000
2020
0.004
0.291
0.000
2019
0.000
0.306
0.000
2018
0.000
0.273
0.061
2017
0.000
0.334
0.008
2016
0.000
0.282
0.015
2015
0.000
0.305
0.022
2014
0.060
0.335
0.000

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.

Management

Janaki Rao

Janaki Rao 

  • Managing Director, Head of US Multisector
  • Start date on the Fund: May 2024
  • Years of industry experience: 31
  • Read bio
Andrew Vonthethoff

Andrew Vonthethoff, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: May 2024
  • Years of industry experience: 16
  • Read bio

Fees

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price none
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none
Annual fund operating expenses
Management fees 0.47%
Distribution and service (12b-1) fees none
Other expenses 0.15%
Total annual fund operating expenses 0.62%
Fee waivers and expense reimbursements1 (0.17%)
Total annual fund operating expenses after fee waivers and expense reimbursements 0.45%

Please see the prospectus and SAI for additional information.

1Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from February 27, 2024 through February 26, 2025. Please see the fee table in the Fund's prospectus for more information.

Institutional Class shares are available only 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 dividend and 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 0.45% of the Fund's average daily net assets from February 25, 2022 through February 28, 2023. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

Significant Fund Event

On May 6, 2024, the portfolio management responsibilities of the Fund changed, and Janaki Rao and Andrew Vonthethoff now serve as portfolio managers of 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 visiting delawarefunds.com/literature or calling 877 693-3546. Investors should read the prospectus and the summary prospectus carefully before investing.

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 visiting delawarefunds.com/literature or calling 800 523-1918. 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 (MIMEL), Macquarie Investment Management Austria Kapitalanlage AG (MIMAK), and Macquarie Investment Management Global Limited (MIMGL) (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 principal on a fixed income security may be prepaid prior to maturity, which may require reinvestment at a lower interest rate. .

High yield securities (“junk bonds”) are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than higher-rated 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 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.

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

International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.

IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.

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

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