Delaware Total Return Fund

Delaware Total Return Fund

Key features

Seeks total return with a flexible exposure to securities throughout the capital structure that offer the potential for capital growth and current income

Provides diversification among different asset classes and across geographies consistent with a moderate investment risk tolerance

Strategic and tactical allocations made by an investment team with more than 30 years' collective experience managing multi-asset portfolios

Daily pricing as of 01/27/2023

NAV
$14.42
NAV 1-day net change
-0.01
Max offer price
$14.42

Total net assets as of 12/31/2022

All share classes
$391.3 million

Overview

Fund information
Inception date 04/01/2013
Dividends paid (if any) Monthly
Capital gains paid (if any) November or December
Fund identifiers
NASDAQ FITUX
CUSIP 24611D631

Benchmark and peer group

S&P 500® Index (primary) (view definition)

60% S&P 500® Index / 40% Bloomberg US Aggregate Index (view definition)

Bloomberg US Aggregate Index (view definition)

Morningstar Allocation — 50% to 70% Equity Category (view definition)

Lipper Mixed-Asset Target Allocation Moderate 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 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 (12/31/2022)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to the Fund's inception date.

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 (12/31/2022)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to the Fund's inception date.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Morningstar ranking - as of 12/31/2022
1 year 93 / 757
3 years 418 / 697
5 years 435 / 657
10 years n/a
Morningstar category Morningstar Allocation -- 50% to 70% Equity Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Expense ratio

Gross
0.88%
Net
0.81%

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2022
-10.11%
2021
16.90%
2020
2.57%
2019
19.20%
2018
-7.54%
2017
12.06%
2016
6.74%
2015
-1.59%
2014
5.95%

Portfolio

Portfolio characteristics as of 12/31/2022

Number of holdings
714
Portfolio turnover (last fiscal year)
57%
Beta (relative to S&P 500 Index) (view definition)
0.70
SEC 30-day yield with waiver (view definition)
2.72%
SEC 30-day yield without waiver (view definition)
2.59%
Annualized standard deviation, 3 years (view definition)
15.52

Portfolio composition as of 12/31/2022
Total may not equal 100% due to rounding.

US quality and income equity
30.9%
Large-cap value
16.2%
Investment grade
13.2%
Opportunistic
12.7%
Convertibles
9.4%
High yield
5.4%
International equity
4.2%
International fixed income
3.7%
REITs
2.8%
Cash and cash equivalents
1.7%

Top 10 equity holdings as of 12/31/2022

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

List may exclude cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
Ishares--5 Year Investment Grade C
5.04
Hixon Properties Inc.
2.61
Vanguard Russell Index FUND;ETF
2.54
Apple Inc.
2.32
Microsoft Corp.
2.02
Johnson & Johnson
1.45
Merck & Co. Inc.
1.27
Broadcom Inc.
1.22
TJX Inc.
1.11
Metlife Inc.
1.01

Total % Portfolio in Top 10 holdings - 20.59%

List of monthly holdingsList of quarterly holdings

Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2022
0.321
0.270
2021
2.151
0.288
2020
0.000
0.373
2019
3.731
0.438
2018
1.520
0.425
2017
0.352
0.385
2016
0.300
0.341
2015
0.430
0.319
2014
0.668
0.336
2013
0.416
0.242
2012
0.000
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.

Total may not equal 100% due to rounding.

Management

Investment manager

Delaware Management Company (DMC)

Stefan Lowenthal

Stefan Löwenthal, CFA

  • Managing Director, Chief Investment Officer — Global Multi Asset Team
  • Start date on the Fund: June 2020
  • Years of industry experience: 14
  • Read bio
Jurgen Wurzer

Jürgen Wurzer, CFA

  • Senior Vice President, Deputy Head of Portfolio Management— Global Multi Asset Team
  • Start date on the Fund: June 2020
  • Years of industry experience: 16
  • Read bio
Aaron Young

Aaron D. Young 

  • Senior Vice President, Portfolio Manager
  • Start date on the Fund: May 2022
  • Years of industry experience: 18
  • 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 0.65%
Distribution and service (12b-1) fees none
Other expenses 0.23%
Total annual fund operating expenses 0.88%
Fee waivers and expense reimbursements1 (0.07%)
Total annual fund operating expenses after fee waivers and expense reimbursements 0.81%

Please see the prospectus and SAI for additional information.

1Net expense ratio reflects a contractual waiver of certain fees/and/or expense reimbursements from January 28, 2022 through January 28, 2023. 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.

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 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 0.81% of the Fund’s average daily net assets from January 28, 2022 through January 28, 2023. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

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 it's 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 it's 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.

Macquarie Investment Management Austria Kapitalanlage AG (MIMAK) serves as sub-advisor for the Fund. MIMAK is primarily responsible for the day-to-day management of the Fund's portfolio and determines it asset allocation. The Fund's investment manager, Delaware Management Company (Manager), may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Europe Limited (MIMEL) and Macquarie Investment Management Global Limited (MIMGL). The Manager may also permit MIMEL, MIMGL, and Macquarie Funds Management Hong Kong Limited (MFMHKL) to execute Fund security trades on behalf of the Manager. The Manager may also permit MIMEL and MIMGL to exercise investment discretion for securities in certain markets where the Manager believes it will be beneficial to utilize their specialized market knowledge, and the Manager may also seek quantitative support from MIMGL. MIMGL is also responsible for managing real estate investment trust securities and other equity asset classes to which the portfolio managers may allocate assets from time to time.

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.

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.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.

Risk controls and asset allocation models do not promise any level of performance or guarantee against loss of principal. Each [Fund] has a different level of risk.

The risks of investing in an exchange-traded fund (ETF) typically reflect the risks of the types of instruments in which the ETFs invest. Because ETFs are investment companies, a fund will bear its proportionate share of the fees and expenses of an investment in an ETF. As a result, a fund’s expenses may be higher and performance may be lower.

Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.

“Non-diversified” funds may allocate more of their net assets to investments in single securities than “diversified” funds. Resulting adverse effects may subject these funds to greater risks and volatility.

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.

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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