Delaware VIP® Total Return Series** (formerly, First Investors Life Series 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 05/26/2020

NAV
NAV 1-day net change
Max offer price
$10.79

Total net assets as of 04/30/2020

All share classes
$48.2 million

Overview

Series information
Inception date12/17/2012
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifiers
CUSIP246493423

Benchmark

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

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

Bloomberg Barclays US Aggregate Index (view definition)

ICE BofA US Corporate, Government & Mortgage 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 (04/30/2020)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end following 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.

Performance shown prior to Oct. 4, 2019, are as of the predecessor fund and investment team. Please see the Updated Significant Fund Event and prospectus for more information.

Average annual total return as of quarter-end (03/31/2020)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end following 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.

Performance shown prior to Oct. 4, 2019, are as of the predecessor series and investment team. Please see the Updated Significant Series Event and prospectus for more information.

Expense ratio

Gross
0.92%
Net
0.86%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Oct. 4, 2019 through Oct. 31, 2021. 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.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2019
18.88%
2018
-7.65%
2017
11.75%
2016
6.62%
2015
-1.61%
2014
5.97%
2013
17.02%

Portfolio

Portfolio characteristics as of 04/30/2020

Number of holdings
252
Market cap (median) Source: FactSet
$32.0 billion
Market cap (weighted average) Source: FactSet
$390.90 trillion
Portfolio turnover (last fiscal year)
150%
Beta (relative to S&P 500 Index) (view definition)
0.70
SEC 30-day yield with waiver (view definition)
3.04%
SEC 30-day yield without waiver (view definition)
2.90%
Annualized standard deviation, 3 years (view definition)
12.26

Portfolio composition as of 04/30/2020
Total may not equal 100% due to rounding.

Large-cap value
41.6%
Cash and cash equivalents
14.4%
Convertibles
11.6%
High yield
10.8%
Opportunistic
8.6%
REITs
5.3%
International fixed income
2.9%
International equity
2.7%
Municipal
1.8%
Investment grade
0.3%

Top 10 equity holdings as of 04/30/2020

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

List may exclude cash, cash equivalents, and exchange-traded funds (ETFs) that are used for cash management purposes.

Holding
% of portfolio
Holding
% of portfolio
Conocophillips
1.55
Dupont DE Nemours Inc.
1.42
Amazon Com Inc.
1.41
Lowes Companies Inc.
1.33
Pfizer Inc.
1.32
Allstate Corp.
1.31
Cigna Corp.
1.30
Comcast Corp. Class A
1.29
Marsh & Mclennan Inc.
1.29
Conagra Brands Inc.
1.29

Total % Portfolio in Top 10 holdings - 13.51%

List of monthly holdingsList of quarterly holdings

Management

Bob Zenouzi

Bob Zenouzi 

  • Senior Vice President, Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)
  • Start date on the Fund: October 2019
  • Years of industry experience: 33
  • Read bio
Damon Andres

Damon J. Andres, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 29
  • Read bio

Fees

Annual series operating expenses
Management fees0.65%
Distribution and service (12b-1) feesnone
Other expenses0.27%
Total annual Series operating expenses0.92%
Fee waivers and expense reimbursements1(0.06%)
Total annual series operating expenses after fee waivers and expense reimbursements0.86%

1The Series’ 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 series operating expenses from exceeding 0.86% of the Series’ average daily net assets from Oct. 4, 2019 through Oct. 31, 2021. These waivers and reimbursements may only be terminated by agreement of the Manager and the Series.

Resources

*The Fund's secondary benchmark, the ICE BofA US Corporate, Government & Mortgage Index was removed as of Oct. 4, 2019.

**Updated Significant Series Event. On April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts and the First Investors Fund shareholders approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund in the Delaware Funds by Macquarie family of funds. The Transaction closed on Oct. 4, 2019.

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

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.

The Series' investment manager, Delaware Management Company (Manager), may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Europe Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited (MIMGL), and Macquarie Funds Management Hong Kong Limited (MFMHKL) (together, the “Affiliated Sub-Advisors”). The Manager may also permit these Affiliated Sub-Advisors to execute Series security trades on behalf of the Manager and exercise investment discretion for securities in certain markets where the Manager believes it will be beneficial to utilize an Affiliated Sub-Advisor’s specialized market knowledge. The Series may permit its affiliates, MIMGL and MFMHKL, to execute series security trades on behalf of the Manager. The Manager may also seek quantitative support from MIMGL.

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 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.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.

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.

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.

An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.

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 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.

LIBOR risk is the risk that potential changes related to the use of the London Interbank Offered Rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.

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.

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 available only through the purchase of certain variable insurance products.

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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