Delaware Investments Corporate Bond Fund

Investment objective

The investment objective of Delaware Investments Corporate Bond Fund is to aim to achieve total return (income plus capital appreciation).

Philosophy

The investment manager analyses economic and market conditions, seeking to identify the securities or market sectors that it thinks are the best investments for the Fund. Before selecting corporate bonds, the investment manager evaluates each individual bond, including its income potential and the size of the bond issuance. The investment manager carries out a credit analysis of the issuer to determine whether the company has the financial ability to meet the bond's repayments. The investment manager seeks to maintain a well-diversified portfolio of bonds that represents many different sectors and industries.

Performance as of 31 October 2018

  October1 YTD1 1 Year 3 Year Since inception(15/12/2014)
Delaware Investments Corporate Bond Fund
(Class I USD (Accumulating) shares, net of fees, in US dollars)
-1.55% -3.99% -3.48% 2.35% 2.08%
Primary benchmark: Bloomberg Barclays US Corporate Investment Grade Index -1.46% -3.76% -3.02% 2.47% 2.02%
Secondary benchmark: Bloomberg Barclays Global Aggregate Corporate Index -1.66% -4.39% -3.08% 2.35% 1.12%

1. Returns for less than one year are not annualized.

As of 30 June 2018, Delaware Investments Corporate Bond Fund had 5,165,263.017 settled shares, and a total balance of shares in issue of 5,165,263.017 across all share classes of the Fund.

The performance data quoted represent past performance; past performance may not be a reliable guide to future performance and does not guarantee future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

The Bloomberg Barclays US Corporate Investment Grade Index is composed of US dollar-denominated, investment grade, US Securities and Exchange Commission (SEC)-registered corporate bonds issued by industrial, utility, and financial companies. All bonds in the index have at least one year to maturity.

The Bloomberg Barclays Global Aggregate Corporate Index is composed of investment grade fixed-rate corporate bonds issued by corporations in emerging and developed markets worldwide. All bonds in the index have at least one year to maturity.

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

Portfolio characteristics as of 31 October 2018

Primary benchmark: Bloomberg Barclays US Corporate Investment Grade Index

Secondary benchmark: Bloomberg Barclays Global Aggregate Corporate Index

  Fund Primary
benchmark
Secondary
benchmark
Effective maturity 11.5 yrs 10.7 yrs 8.9 yrs
Effective duration 6.8 yrs 7.1 yrs 6.4 yrs
Current yield 4.9% 4.1% 3.5%
Yield to worst 4.8% 4.3% 3.4%
Number of securities 229 5,830 11,880

Top 10 sector weightings as of 31 October 2018

  Fund Primary
benchmark
Secondary
benchmark
Banking 21.5% 23.4% 26.6%
Communications 12.9% 9.0% 8.4%
Energy 11.9% 9.1% 7.1%
Electric 8.3% 6.5% 5.9%
Consumer noncyclical 7.8% 16.1% 13.9%
Capital goods 5.4% 5.2% 4.7%
Technology 4.8% 8.0% 5.2%
Consumer cyclical 4.6% 7.3% 7.7%
Insurance 4.3% 4.7% 5.8%
Brokerage Asset Mgers Exchanges 3.2% 1.0% 1.0%

Credit quality as of 31 October 2018

  Fund Primary
benchmark
Secondary
benchmark
AAA 1.2% 1.9% 1.3%
AA 0.5% 8.3% 10.0%
A 13.1% 41.0% 39.0%
BBB 65.0% 48.8% 49.7%
Below BBB 20.2% 0.0% 0.0%

Total may not equal 100% due to rounding. The Fund’s investment manager, Macquarie Investment Management Advisers (MIMA), a series of Macquarie Investment Management Business Trust (MIMBT) receives “Credit Quality” ratings for the underlaying securities held by the Fund from three “Nationally Recognized Statistical Rating Agencies” (NRSROs) — Standard & Poor&rsuo;s (S&P), Moody’s Investors Services, and Fitch, Inc. The credit quality breakdown is calculated by MIMA 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 agencies are included in the “not rated” category when applicable. Unrated securities do not necessarily indicate low quality.

Per Standard & Poor’s credit rating agency, bonds rated below AAA are more susceptible to the adverse effects of changes in circumstances and economic conditions than those in higher rated categories, but the obligor’s capacity to meet its financial commitment on the obligation is still strong. Bonds rated BBB exhibit adequate protection parameters, although adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics with BB indicating the least degree of speculation.

The Bloomberg Barclays US Corporate Investment Grade Index is composed of US dollar-denominated, investment grade, US Securities and Exchange Commission (SEC)-registered corporate bonds issued by industrial, utility, and financial companies. All bonds in the index have at least one year to maturity.

The Bloomberg Barclays Global Aggregate Corporate Index is composed of investment grade fixed-rate corporate bonds issued by corporations in emerging and developed markets worldwide. All bonds in the index have at least one year to maturity.

Mike Wildstein

Michael G. Wildstein, CFA

Executive Director, Head of Credit and Insurance Asset Management

Start date on the Fund: December 2014

Years of industry experience: 17

(View bio)


Wayne Anglace

Wayne A. Anglace, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: July 2016

Years of industry experience: 20

(View bio)


J. David Hillmeyer

David Hillmeyer, CFA

Executive Director, Head of Multisector/Global Fixed Income — Macquarie Investment Management, Americas

Start date on the Fund: December 2014

Years of industry experience: 25

(View bio)


Kashif Ishaq

Kashif Ishaq 

Senior Vice President, Global Head of Corporate Bond Trading

Start date on the Fund: December 2014

Years of industry experience: 16

(View bio)


Paul Matlack

Paul A. Matlack, CFA

Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

Start date on the Fund: December 2014

Years of industry experience: 33

(View bio)


Portfolio holdings are as of the date noted above and are subject to change at any time. Holdings may not be representative of current or future investments and may not include the entire investment portfolio. Holdings information is made available to the public 30 calendar days after the most recent month-end for monthly holdings and 30 calendar days after the most recent quarter-end for quarterly holdings.

Holdings data is for informational purposes only, and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any specific security. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or part. In no event shall the Macquarie Collective Funds plc or its affiliates have any liability relating to the use of the portfolio holdings.

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

Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and Key Investor Information Documents (KIIDs) contain this and other important information about the Fund. You can request a prospectus, fund supplement, and/or KIID free of charge by calling +353-1-483-2429, visiting delawarefunds.com/ucits/literature or by contacting your applicable local agent. Investors should read the prospectus, fund and country supplements (if applicable), and KIIDs carefully before investing or sending money.

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.

Because the Fund may invest in bank loans and other direct indebtedness, it is subject to the risk that the fund will not receive payment of principal, interest, and other amounts due in connection with these investments, which primarily depend on the financial condition of the borrower and the lending institution.

Credit risk is the risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise meet a contractual obligation. Credit risk arises whenever a borrower expects to use future cash flows to pay a current debt. Investors are compensated for assuming credit risk by way of interest payments from the borrower or issuer of a debt obligation.

Credit risk is closely tied to the potential return of an investment, the most notable being that the yields on bonds correlate strongly to their perceived credit risk.

Prices of derivatives may move in unexpected ways. Some derivatives are “leveraged” and may magnify or otherwise increase investment losses. A liquid secondary market may not always exist for the Funds’ derivatives positions and may not be able to be “closed out” when desired. Derivatives involve legal risk, the risk of loss due to the unexpected application of a law or regulation, or because contracts are not legally enforceable or documented correctly.

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.

Fund finder

Daily pricing (as of 13/12/2018)

ClassPriceNet changeYTD
I USD (Acc.)$10.84no chg-3.90%
F USD (Acc.)$10.50no chg-4.20%

Class I$*

(Accumulating)

Currency USD
ISIN IE00BRYG7Z67
Sedol BRYG7Z6
CUSIP G5735R591
Bloomberg ID DELCBIU

Fees and expenses

Management fee 0.40%
Expense ratio 0.62%

Literature

Fund documents

Visit our Literature page for Key Investor Information Documents (KIIDs).

* For information on other share classes, please contact Delaware Investments at +1 215 255-1505 or at MacquarieUCITS@macquarie.com.