Delaware Ivy VIP High Income

Delaware Ivy VIP High Income

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Key features

A research-driven high yield bond fund seeking long-term growth and income

Leverages the team’s deep credit expertise and sizable presence in the corporate bond market

An experienced management team with more than 25 years average industry experience

Daily pricing as of 06/05/2023

NAV
$2.74
NAV 1-day net change
0.01
Max offer price
$2.74

Total net assets as of 04/30/2023

All share classes
$761.2 million

Overview

Series information
Inception date 04/28/2017
Dividends paid (if any) Annual
Series identifiers
CUSIP 46600H620

Benchmark

ICE BofA US High Yield Constrained Index (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 (05/31/2023)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of 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 (03/31/2023)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the Series' 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.

Expense ratio

Gross
0.67%
Net
0.67%

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.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2022
-10.91%
2021
6.33%
2020
6.30%
2019
11.50%
2018
-1.87%

Portfolio

Portfolio characteristics as of 04/30/2023

Number of holdings
221
Portfolio turnover (last fiscal year)
61%
Effective duration (weighted average) (view definition)
3.39 years
Effective maturity (weighted average) (view definition)
5.60 years
SEC 30-day yield with waiver (view definition)
8.06%
SEC 30-day yield without waiver (view definition)
8.06%
Annualized standard deviation, 3 years (view definition)
8.63

Portfolio composition as of 04/30/2023
Total may not equal 100% due to rounding.

Credits
78.2%
Foreign bonds
16.3%
Cash and cash equivalents
3.5%
Other
2.1%

Top 10 fixed income holdings as of 05/31/2023

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
FORM TECHNOLOGIES LLC
1.47
EQM MIDSTREAM PARTNERS LP
1.20
ROYAL CARIBBEAN CRUISES LTD
1.11
MURPHY OIL CORPORATION
1.10
AERCAP HOLDINGS NV
1.05
CONNECT FINCO SARL
1.05
NEW COTAI TL EXIT PIK
1.03
AIR CANADA
1.02
VANTAGE SPECIALTY CHEMICALS INC
1.01
UKG INC
1.01

Total % Portfolio in Top 10 holdings - 11.05%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 04/30/2023

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

Sector
% of portfolio
Sector
% of portfolio
Automotive
2.0%
Basic industry
6.2%
Capital goods
4.7%
Consumer goods
2.0%
Emerging markets
2.1%
Energy
14.1%
Financial services
5.0%
Healthcare
8.3%
Insurance
4.3%
Leisure
9.1%
Media
10.4%
Retail
4.3%
Services
3.5%
Technology & electric
7.9%
Telecommunications
6.3%
Transportation
1.5%
Utility
2.5%
Other
2.1%

Credit quality as of 04/30/2023

Rating
Series
Rating
Series
AAA
5.0%
BBB
1.1%
BB
26.9%
B
44.1%
CCC
14.7%
CC
0.2%
Not rated
8.1%

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.

Management

Adam Brown

Adam H. Brown, CFA

  • Managing Director, Senior Portfolio Manager
  • Start date on the Fund: November 2021
  • Years of industry experience: 24
  • Read bio
John McCarthy

John P. McCarthy, CFA

  • Managing Director, Senior Portfolio Manager
  • Start date on the Fund: November 2021
  • Years of industry experience: 36
  • Read bio

Fees

Annual series operating expenses
Management fees 0.62%
Distribution and service (12b-1) fees none
Other expenses 0.05%
Total annual Series operating expenses 0.67%
Fee waivers and expense reimbursements1 none
Total annual series operating expenses after fee waivers and expense reimbursements 0.67%

Please see the prospectus and SAI for additional information.

1Other expenses contain a 0.03% acquired fund fees and expenses. Acquired fund fees and expenses sets forth the Portfolio's pro rata portion of the cumulative expenses charged by the registered investment companies (RICs) in which the Portfolio invested during the last fiscal year. The actual Acquired fund fees and expenses will vary with changes in the allocations of the Portfolio's assets. The Acquired fund fees and expenses shown are based on the total expense ratio of the RICs for the RICs' most recent fiscal period. These expenses are not direct costs paid by Portfolio shareholders, and are not used to calculate the Portfolio's NAV.

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 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 0.72% of the Fund’s average daily net assets from April 30, 2021 through April 30, 2022. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

The Portfolio’s investment manager, Delaware Management Company (Manager), may permit its affiliates, Macquarie Investment Management Global Limited (MIMGL) and Macquarie Funds Management Hong Kong Limited, to execute Portfolio security trades on behalf of the Manager. The Manager may also seek quantitative support from MIMGL. The Portfolio’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 Portfolio 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.

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 delawarefunds.com/vip-literature 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 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.

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 Series’ 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 Series from executing advantageous investment decisions in a timely manner and could negatively impact the Series’ ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Series.

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

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

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