Macquarie VIP High Income Series

Macquarie VIP High Income Series(formerly, Delaware Ivy VIP High Income)

Key features

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

Leverages the team's credit expertise and presence in corporate bond market

An experienced management team with significant experience managing through market cycles

Daily pricing as of 06/14/2024

NAV
NAV 1-day net change
Max offer price
$2.83

Total net assets as of 05/31/2024

All share classes
$795.7 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 (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.

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.

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

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
0.71%
Net
0.71%

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
2023
12.22%
2022
-10.91%
2021
6.33%
2020
6.30%
2019
11.50%
2018
-1.87%

Portfolio

Portfolio characteristics as of 05/31/2024

Number of holdings
217
Portfolio turnover (last fiscal year)
33%
Effective duration (weighted average) (view definition)
3.03 years
Effective maturity (weighted average) (view definition)
4.06 years
SEC 30-day yield with waiver (view definition)
7.33%
SEC 30-day yield without waiver (view definition)
7.33%
Annualized standard deviation, 3 years (view definition)
7.92

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

Credits
79.0%
Foreign bonds
16.1%
Cash and cash equivalents
3.0%
Other
1.9%

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
NEW COTAI TL EXIT PIK
1.28
FORM TECHNOLOGIES LLC
1.26
EQM MIDSTREAM PARTNERS LP
1.19
ROYAL CARIBBEAN CRUISES LTD
1.10
MURPHY OIL CORPORATION
1.05
AERCAP HOLDINGS NV
1.04
ADT CORP
1.01
VISTRA CORP
1.00
AIR CANADA
0.97
BOYD GAMING CORPORATION
0.96

Total % Portfolio in Top 10 holdings - 10.86%

List of monthly holdingsList of quarterly holdings

Sector allocation 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 Series’ complete list of holdings for more information.

Sector
% of portfolio
Sector
% of portfolio
Energy
12.9%
Media
8.6%
Leisure
8.6%
Basic industry
8.0%
Healthcare
7.6%
Technology & electric
7.1%
Capital goods
7.1%
Services
7.0%
Financial services
5.6%
Insurance
4.3%
Telecommunications
4.1%
Retail
3.5%
Utility
2.6%
Automotive
2.5%
Consumer goods
2.4%
Transportation
1.5%
Banking
1.0%
Emerging markets
0.7%
Other
1.9%

Credit quality as of 05/31/2024

Rating
Series
Rating
Series
AAA
5.1%
AA
-0.8%
BBB
1.1%
BB
35.5%
B
36.2%
CCC
12.9%
CC
0.6%
Not rated
9.5%

Total may not equal 100% due to rounding. The Series' 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 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: 25
  • Read bio
John McCarthy

John P. McCarthy, CFA

  • Managing Director, Senior Portfolio Manager
  • Start date on the Fund: November 2021
  • Years of industry experience: 37
  • Read bio
Vivek Bommi

Vivek Bommi 

  • Managing Director, Head of Leveraged Credit
  • Start date on the Fund: November 2023
  • Years of industry experience: 24
  • Read bio

Fees

Annual portfolio operating expenses
Management fees 0.62%
Distribution and service (12b-1) fees none
Other expenses 0.09%
Total annual series operating expenses 0.71%

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 Series' pro rata portion of the cumulative expenses charged by the registered investment companies (RICs) in which the Series invested during the last fiscal year. The actual Acquired fund fees and expenses will vary with changes in the allocations of the Series' 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 Series shareholders, and are not used to calculate the Series' 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

Effective May 1, 2024, Class I was renamed Standard Class and Class II was renamed Service Class.

The Series’ investment manager, Delaware Management Company (Manager), may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Austria Kapitalanlage AG (MIMAK), Macquarie Investment Management Europe Limited (MIMEL), and Macquarie Investment Management Global Limited (MIMGL) (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.

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.

The prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. An issuer of a fixed income security may be unable to make interest payments and/or repay principal in a timely manner. 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.

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.

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.

Macquarie 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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