UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-06569 |
Exact name of registrant as specified in charter: | Ivy Funds |
Address of principal executive offices: | 610 Market Street Philadelphia, PA 19106 |
Name and address of agent for service: | David F. Connor, Esq. 610 Market Street Philadelphia, PA 19106 |
Registrant’s telephone number, including area code: | (800) 523-1918 |
Date of fiscal year end: | September 30 |
Date of reporting period: | March 31, 2024 |
Item 1. Reports to Stockholders
![]() | ![]() |
Semiannual report
Ivy Funds
Delaware Ivy Government Securities Fund
Delaware Ivy High Yield Fund
Delaware Ivy Multi-Asset Income Fund
Delaware Ivy Total Return Bond Fund
March 31, 2024
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, 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.
You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawarefunds.com/edelivery.
Experience Delaware Funds by Macquarie®
Macquarie Asset Management (MAM) is a global asset manager that aims to deliver positive impact for everyone. MAM’s public markets businesses trace their roots to 1929 and partner with institutional and individual clients to deliver specialist active investment capabilities across global equities, fixed income, and multi-asset solutions using a conviction-based, long-term approach to investing. In the US, retail investors recognize our Delaware Funds by Macquarie family of funds as one of the oldest mutual fund families.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for the Funds at delawarefunds.com/literature.
Manage your account online
· Check your account balance and transactions
· View statements and tax forms
· Make purchases and redemptions
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities, and multi-asset solutions.
The Funds are advised by Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT), a US registered investment adviser, and distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
The Funds are governed by US laws and regulations.
This semiannual report is for the information of Delaware Ivy Government Securities Fund, Delaware Ivy High Yield Fund, Delaware Ivy Multi-Asset Income Fund, and Delaware Ivy Total Return Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the applicable fund's current prospectus or summary prospectus. These documents are available at delawarefunds.com/literature.
Unless otherwise noted, views expressed herein are current as of March 31, 2024, and subject to change for events occurring after such date. These views are not intended to be investment advice, to forecast future events, or to guarantee future results.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested. All third-party marks cited are the property of their respective owners.
© 2024 Macquarie Management Holdings, Inc.
For the six-month period from October 1, 2023 to March 31, 2024 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from October 1, 2023 to March 31, 2024.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
Delaware Ivy Government Securities Fund
Expense analysis of an investment of $1,000
Expenses | ||||||||||||
Paid | ||||||||||||
Beginning | Ending | During | ||||||||||
Account | Account | Annualized | Period | |||||||||
Value | Value | Expense | 10/1/23 to | |||||||||
10/1/23 | 3/31/24 | Ratio | 3/31/24* | |||||||||
Actual Fund return† | ||||||||||||
Class A | $ 1,000.00 | $ 1,049.60 | 0.89% | $ 4.56 | ||||||||
Class C | 1,000.00 | 1,043.40 | 1.64% | 8.38 | ||||||||
Class I | 1,000.00 | 1,050.90 | 0.64% | 3.28 | ||||||||
Class R6 | 1,000.00 | 1,051.30 | 0.57% | 2.92 | ||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||
Class A | $ 1,000.00 | $ 1,020.55 | 0.89% | $ 4.50 | ||||||||
Class C | 1,000.00 | 1,016.80 | 1.64% | 8.27 | ||||||||
Class I | 1,000.00 | 1,021.80 | 0.64% | 3.23 | ||||||||
Class R6 | 1,000.00 | 1,022.15 | 0.57% | 2.88 |
Delaware Ivy High Yield Fund
Expense analysis of an investment of $1,000
Expenses | ||||||||||||
Paid | ||||||||||||
Beginning | Ending | During | ||||||||||
Account | Account | Annualized | Period | |||||||||
Value | Value | Expense | 10/1/23 to | |||||||||
10/1/23 | 3/31/24 | Ratio | 3/31/24* | |||||||||
Actual Fund return† | ||||||||||||
Class A | $ 1,000.00 | $ 1,083.20 | 0.97% | $ 5.05 | ||||||||
Class I | 1,000.00 | 1,085.10 | 0.72% | 3.75 | ||||||||
Class R6 | 1,000.00 | 1,084.60 | 0.69% | 3.60 | ||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||
Class A | $ 1,000.00 | $ 1,020.15 | 0.97% | $ 4.90 | ||||||||
Class I | 1,000.00 | 1,021.40 | 0.72% | 3.64 | ||||||||
Class R6 | 1,000.00 | 1,021.55 | 0.69% | 3.49 |
1
Disclosure of Fund expenses
Delaware Ivy Multi-Asset Income Fund
Expense analysis of an investment of $1,000
Expenses | ||||||||||||
Paid | ||||||||||||
Beginning | Ending | During | ||||||||||
Account | Account | Annualized | Period | |||||||||
Value | Value | Expense | 10/1/23 to | |||||||||
10/1/23 | 3/31/24 | Ratio | 3/31/24* | |||||||||
Actual Fund return† | ||||||||||||
Class A | $ 1,000.00 | $ 1,099.40 | 1.00% | $ 5.25 | ||||||||
Class C | 1,000.00 | 1,095.10 | 1.75% | 9.17 | ||||||||
Class I | 1,000.00 | 1,100.60 | 0.75% | 3.94 | ||||||||
Class R6 | 1,000.00 | 1,101.30 | 0.71% | 3.73 | ||||||||
Class Y | 1,000.00 | 1,099.30 | 1.00% | 5.25 | ||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||
Class A | $ 1,000.00 | $ 1,020.00 | 1.00% | $ 5.05 | ||||||||
Class C | 1,000.00 | 1,016.25 | 1.75% | 8.82 | ||||||||
Class I | 1,000.00 | 1,021.25 | 0.75% | 3.79 | ||||||||
Class R6 | 1,000.00 | 1,021.45 | 0.71% | 3.59 | ||||||||
Class Y | 1,000.00 | 1,020.00 | 1.00% | 5.05 |
Delaware Ivy Total Return Bond Fund
Expense analysis of an investment of $1,000
Expenses | ||||||||||||
Paid | ||||||||||||
Beginning | Ending | During | ||||||||||
Account | Account | Annualized | Period | |||||||||
Value | Value | Expense | 10/1/23 to | |||||||||
10/1/23 | 3/31/24 | Ratio | 3/31/24* | |||||||||
Actual Fund return† | ||||||||||||
Class A | $ 1,000.00 | $ 1,067.60 | 1.21% | $ 6.25 | ||||||||
Class C | 1,000.00 | 1,063.00 | 1.96% | 10.11 | ||||||||
Class I | 1,000.00 | 1,068.80 | 0.96% | 4.97 | ||||||||
Class R6 | 1,000.00 | 1,069.70 | 0.89% | 4.61 | ||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||
Class A | $ 1,000.00 | $ 1,018.95 | 1.21% | $ 6.11 | ||||||||
Class C | 1,000.00 | 1,015.20 | 1.96% | 9.87 | ||||||||
Class I | 1,000.00 | 1,020.20 | 0.96% | 4.85 | ||||||||
Class R6 | 1,000.00 | 1,020.55 | 0.89% | 4.50 |
*“Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
†Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns.
In addition to the Funds’ expenses reflected above and on the previous page, each Fund also indirectly bears its portion of the fees and expenses of any investment companies (Underlying Funds), including exchange-traded funds, in which it invests. The tables above and on the previous page do not reflect the expenses of any Underlying Funds.
2
Security type / sector allocations
Delaware Ivy Government Securities Fund
As of March 31, 2024 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different from another fund’s sector designations.
Security type / sector | Percentage of net assets | |||
Agency Collateralized Mortgage Obligations | 1.86 | % | ||
Agency Commercial Mortgage-Backed Securities | 2.60 | % | ||
Agency Mortgage-Backed Securities | 44.37 | % | ||
Agency Obligations | 1.54 | % | ||
US Treasury Obligations | 47.97 | % | ||
Short-Term Investments | 2.65 | % | ||
Total Value of Securities | 100.99 | % | ||
Liabilities Net of Receivables and Other Assets | (0.99 | )% | ||
Total Net Assets | 100.00 | % |
3
Security type / sector allocations
Delaware Ivy High Yield Fund
As of March 31, 2024 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different from another fund’s sector designations.
Security type / sector | Percentage of net assets | |||
Corporate Bonds | 101.70 | % | ||
Automotive | 0.74 | % | ||
Banking | 1.55 | % | ||
Basic Industry | 9.09 | % | ||
Capital Goods | 6.57 | % | ||
Consumer Goods | 1.50 | % | ||
Electric | 3.18 | % | ||
Energy | 13.42 | % | ||
Financial Services | 3.37 | % | ||
Healthcare | 9.53 | % | ||
Insurance | 5.81 | % | ||
Leisure | 8.72 | % | ||
Media | 11.13 | % | ||
Retail | 5.25 | % | ||
Services | 5.33 | % | ||
Technology & Electronics | 5.84 | % | ||
Telecommunications | 9.83 | % | ||
Transportation | 0.84 | % | ||
Total Value of Securities | 101.70 | % | ||
Liabilities Net of Receivables and Other Assets | (1.70 | )% | ||
Total Net Assets | 100.00 | % |
4
Security type / sector allocations and top 10 equity holdings
Delaware Ivy Multi-Asset Income Fund
As of March 31, 2024 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different from another fund’s sector designations.
Security type / sector | Percentage of net assets | |||
Agency Mortgage-Backed Securities | 3.70 | % | ||
Convertible Bond | 1.01 | % | ||
Corporate Bonds | 30.20 | % | ||
Banking | 1.90 | % | ||
Basic Industry | 1.29 | % | ||
Brokerage | 0.45 | % | ||
Capital Goods | 3.56 | % | ||
Communications | 5.53 | % | ||
Consumer Cyclical | 3.95 | % | ||
Consumer Non-Cyclical | 2.80 | % | ||
Electric | 1.74 | % | ||
Energy | 4.02 | % | ||
Finance Companies | 0.49 | % | ||
Financials | 0.13 | % | ||
Insurance | 1.86 | % | ||
Real Estate Investment Trusts | 0.10 | % | ||
Technology | 2.32 | % | ||
Transportation | 0.06 | % | ||
Non-Agency Commercial Mortgage-Backed Securities | 0.93 | % | ||
Loan Agreements | 0.46 | % | ||
US Treasury Obligations | 1.12 | % | ||
Common Stocks | 54.48 | % | ||
Basic Industry | 0.61 | % | ||
Capital Goods | 0.49 | % | ||
Consumer Cyclical | 0.07 | % | ||
Consumer Discretionary | 4.27 | % | ||
Consumer Non-Cyclical | 7.57 | % | ||
Consumer Staples | 6.17 | % | ||
Energy | 3.58 | % | ||
Financial Services | 1.11 | % | ||
Healthcare | 1.35 | % | ||
Home Builders | 0.09 | % | ||
Industrials | 5.80 | % | ||
Integrated Telecommunication Services | 0.01 | % | ||
Materials | 4.95 | % | ||
Real Estate | 1.03 | % | ||
Real Estate Operating Companies/Developer | 0.54 | % | ||
REIT Diversified | 1.07 | % | ||
REIT Healthcare | 0.44 | % | ||
REIT Industrial | 1.53 | % | ||
REIT Information Technology | 1.32 | % | ||
REIT Lodging | 0.26 | % | ||
REIT Mall | 0.21 | % | ||
REIT Manufactured Housing | 0.46 | % | ||
REIT Multifamily | 1.48 | % | ||
REIT Office | 0.37 | % | ||
REIT Retail | 0.28 | % | ||
REIT Self-Storage | 0.52 | % | ||
REIT Shopping Center | 0.82 | % | ||
REIT Single Tenant | 0.39 | % | ||
REIT Specialty | 0.50 | % | ||
Technology | 1.85 | % | ||
Utilities | 5.34 | % | ||
Preferred Stocks | 0.77 | % | ||
Exchange-Traded Funds | 5.79 | % | ||
Master Limited Partnerships | 0.30 | % | ||
Warrants | 0.02 | % | ||
Short-Term Investments | 0.56 | % | ||
Total Value of Securities | 99.34 | % | ||
Receivables and Other Assets Net of Liabilities | 0.66 | % | ||
Total Net Assets | 100.00 | % |
5
Security type / sector allocations and top 10 equity holdings
Delaware Ivy Multi-Asset Income Fund
Top 10 equity holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
Top 10 equity holdings | Percentage of net assets | |||
SAP | 1.21 | % | ||
Koninklijke Ahold Delhaize | 1.20 | % | ||
Nestle | 1.10 | % | ||
Unilever | 1.09 | % | ||
Diageo | 1.05 | % | ||
Clorox | 0.86 | % | ||
Air Liquide | 0.85 | % | ||
Amadeus IT Group | 0.83 | % | ||
Smith & Nephew | 0.82 | % | ||
Welltower | 0.79 | % |
6
Security type / sector allocations
Delaware Ivy Total Return Bond Fund
As of March 31, 2024 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different from another fund’s sector designations.
Security type / sector | Percentage of net assets | |||
Agency Mortgage-Backed Securities | 14.02 | % | ||
Corporate Bonds | 40.97 | % | ||
Banking | 13.05 | % | ||
Basic Industry | 1.06 | % | ||
Brokerage | 0.69 | % | ||
Capital Goods | 0.82 | % | ||
Communications | 2.61 | % | ||
Consumer Cyclical | 0.88 | % | ||
Consumer Non-Cyclical | 1.38 | % | ||
Electric | 5.76 | % | ||
Energy | 5.29 | % | ||
Finance Companies | 2.20 | % | ||
Industrials | 0.83 | % | ||
Insurance | 2.52 | % | ||
Natural Gas | 0.38 | % | ||
Real Estate Investment Trusts | 1.46 | % | ||
Technology | 1.22 | % | ||
Transportation | 0.82 | % | ||
Government Agency Obligation | 0.92 | % | ||
Sovereign Bonds | 34.30 | % | ||
Australia | 1.45 | % | ||
Belgium | 0.70 | % | ||
Bermuda | 0.80 | % | ||
Brazil | 0.32 | % | ||
Chile | 0.80 | % | ||
Dominican Republic | 0.83 | % | ||
Finland | 0.04 | % | ||
France | 0.39 | % | ||
Georgia | 0.78 | % | ||
Germany | 5.23 | % | ||
Indonesia | 1.65 | % | ||
Italy | 4.29 | % | ||
Ivory Coast | 1.46 | % | ||
Japan | 2.23 | % | ||
Netherlands | 2.88 | % | ||
Paraguay | 1.25 | % | ||
Poland | 1.36 | % | ||
Serbia | 0.74 | % | ||
Spain | 1.81 | % | ||
United Kingdom | 5.07 | % | ||
Uruguay | 0.22 | % | ||
Supranational Banks | 1.78 | % | ||
US Treasury Obligations | 5.76 | % | ||
Options Purchased | 0.01 | % | ||
Total Value of Securities Before Options Written | 97.76 | % | ||
Options Written | 0.00 | % | ||
Receivables and Other Assets Net of Liabilities | 2.24 | % | ||
Total Net Assets | 100.00 | % |
7
Delaware Ivy Government Securities Fund
March 31, 2024 (Unaudited)
Principal amount° | Value (US $) | |||||||
Agency Collateralized Mortgage Obligations — 1.86% | ||||||||
Freddie Mac REMICs | ||||||||
Series 4568 DA 3.00% 4/15/46 | 759,772 | $ | 686,226 | |||||
Series 4764 PA 3.00% 10/15/45 | 296,717 | 283,472 | ||||||
Series 4922 PA 2.50% 7/25/49 | 681,739 | 586,621 | ||||||
GNMA | ||||||||
Series 2004-31 ZB 5.00% 4/20/34 | 780,115 | 774,454 | ||||||
Total Agency Collateralized Mortgage Obligations | ||||||||
(cost $2,610,729) | 2,330,773 | |||||||
Agency Commercial Mortgage-Backed Securities — 2.60% | ||||||||
Fannie Mae - Aces | ||||||||
Series 2016-M6 A2 2.488% 5/25/26 | 1,593,372 | 1,515,398 | ||||||
Freddie Mac Multifamily Structured Pass Through Certificates | ||||||||
Series K068 X1 0.417% 8/25/27 t, • | 63,456,885 | 778,546 | ||||||
Series K729 A2 3.136% 10/25/24 t | 849,107 | 837,181 | ||||||
Series KW02 A1 2.896% 4/25/26 t | 137,215 | 133,219 | ||||||
Total Agency Commercial Mortgage-Backed Securities | ||||||||
(cost $3,443,116) | 3,264,344 | |||||||
Agency Mortgage-Backed Securities — 44.37% | ||||||||
Fannie Mae S.F. 20 yr | ||||||||
4.00% 12/1/31 | 381,175 | 369,554 | ||||||
4.00% 8/1/42 | 169,501 | 159,566 | ||||||
4.00% 9/1/42 | 415,690 | 390,647 | ||||||
5.50% 8/1/43 | 725,193 | 729,030 | ||||||
Fannie Mae S.F. 30 yr | ||||||||
2.00% 3/1/51 | 1,085,960 | 862,674 | ||||||
2.50% 11/1/51 | 848,178 | 705,849 | ||||||
2.50% 1/1/52 | 1,150,712 | 953,762 | ||||||
2.50% 2/1/52 | 3,198,742 | 2,663,741 | ||||||
3.00% 8/1/49 | 1,666,528 | 1,465,525 | ||||||
3.00% 10/1/49 | 537,887 | 467,228 | ||||||
3.00% 3/1/50 | 3,187,644 | 2,796,553 | ||||||
3.50% 6/1/52 | 3,706,812 | 3,319,412 | ||||||
3.50% 9/1/52 | 1,340,000 | 1,209,634 | ||||||
4.00% 6/1/52 | 1,371,624 | 1,272,253 | ||||||
4.00% 9/1/52 | 268,430 | 248,955 | ||||||
4.50% 4/1/50 | 831,555 | 806,502 | ||||||
4.50% 10/1/52 | 1,491,985 | 1,420,712 | ||||||
4.50% 12/1/52 | 292,793 | 278,807 | ||||||
4.50% 2/1/53 | 781,021 | 743,711 | ||||||
5.50% 10/1/52 | 1,210,375 | 1,206,986 | ||||||
5.50% 11/1/52 | 1,010,468 | 1,013,613 | ||||||
5.50% 12/1/52 | 226,198 | 225,486 | ||||||
5.50% 3/1/53 | 2,912,348 | 2,898,946 | ||||||
6.00% 12/1/52 | 2,139,963 | 2,165,160 | ||||||
Freddie Mac S.F. 30 yr | ||||||||
2.00% 3/1/52 | 2,160,886 | 1,711,456 | ||||||
2.50% 2/1/52 | 3,897,306 | 3,243,939 | ||||||
3.50% 6/1/47 | 902,088 | 822,482 | ||||||
3.50% 4/1/52 | 1,739,561 | 1,565,622 | ||||||
4.00% 8/1/52 | 435,595 | 405,874 | ||||||
4.00% 9/1/52 | 1,763,385 | 1,638,483 | ||||||
4.50% 9/1/52 | 3,567,606 | 3,407,390 | ||||||
4.50% 10/1/52 | 1,501,558 | 1,429,828 | ||||||
5.00% 6/1/53 | 4,489,160 | 4,380,840 | ||||||
5.50% 9/1/52 | 2,528,664 | 2,557,648 | ||||||
5.50% 11/1/52 | 987,194 | 987,920 | ||||||
5.50% 3/1/53 | 1,709,418 | 1,716,094 | ||||||
GNMA II S.F. 30 yr | ||||||||
3.00% 1/20/52 | 540,596 | 476,701 | ||||||
5.50% 5/20/53 | 1,687,239 | 1,686,129 | ||||||
6.00% 5/20/53 | 1,367,675 | 1,385,141 | ||||||
Total Agency Mortgage-Backed Securities | ||||||||
(cost $56,933,871) | 55,789,853 | |||||||
Agency Obligations — 1.54% | ||||||||
Federal Home Loan Mortgage | ||||||||
4.00% 2/28/25 | 980,000 | 970,182 | ||||||
4.20% 8/28/25 | 980,000 | 969,664 | ||||||
Total Agency Obligations | ||||||||
(cost $1,960,000) | 1,939,846 | |||||||
US Treasury Obligations — 47.97% | ||||||||
US Treasury Bonds | ||||||||
1.375% 11/15/40 | 465,000 | 299,171 | ||||||
1.375% 8/15/50 | 600,000 | 317,039 | ||||||
1.875% 2/15/41 | 565,000 | 394,065 | ||||||
2.50% 2/15/45 | 8,215,000 | 6,009,946 | ||||||
4.125% 8/15/53 | 2,755,000 | 2,648,674 | ||||||
4.50% 8/15/39 | 2,270,000 | 2,326,484 | ||||||
US Treasury Floating Rate Note | ||||||||
5.545% (USBMMY3M + 0.25% ) 1/31/26 • | 2,025,000 | 2,027,282 | ||||||
US Treasury Notes | ||||||||
1.125% 2/15/31 | 2,385,000 | 1,956,352 | ||||||
1.625% 2/15/26 | 723,000 | 683,800 | ||||||
2.875% 8/15/28 | 1,345,000 | 1,270,289 | ||||||
3.50% 1/31/30 | 1,350,000 | 1,299,296 | ||||||
3.75% 12/31/28 | 3,215,000 | 3,146,995 | ||||||
3.875% 12/31/29 | 1,700,000 | 1,669,520 | ||||||
4.00% 10/31/29 | 7,780,000 | 7,689,740 |
8
Principal amount° | Value (US $) | |||||||
US Treasury Obligations (continued) | ||||||||
US Treasury Notes | ||||||||
4.125% 10/31/27 | 1,750,000 | $ | 1,736,465 | |||||
4.125% 11/15/32 | 7,680,000 | 7,628,850 | ||||||
4.25% 3/15/27 | 9,725,000 | 9,680,934 | ||||||
4.25% 2/28/29 | 7,375,000 | 7,385,948 | ||||||
4.50% 11/15/33 | 2,100,000 | 2,147,086 | ||||||
Total US Treasury Obligations | ||||||||
(cost $61,509,602) | 60,317,936 | |||||||
Number of | ||||||||
shares | ||||||||
Short-Term Investments — 2.65% | ||||||||
Money Market Mutual Funds — 2.65% | ||||||||
BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 5.20%) | 834,022 | 834,022 | ||||||
Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 5.21%) | 834,022 | 834,022 | ||||||
Goldman Sachs Financial Square Government Fund –Institutional Shares (seven-day effective yield 5.34%) | 834,022 | 834,022 | ||||||
Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 5.22%) | 834,022 | 834,022 | ||||||
Total Short-Term Investments | ||||||||
(cost $3,336,088) | 3,336,088 | |||||||
Total Value of Securities—100.99% | ||||||||
(cost $129,793,406) | $ | 126,978,840 |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
t | Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes. |
· | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at March 31, 2024. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. SOFR01M, SOFR03M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
9
Schedules of investments
Delaware Ivy Government Securities Fund
The following futures contracts were outstanding at March 31, 2024:1
Futures Contracts
Exchange-Traded
Variation | |||||||||||||||||||||||||||
Margin | |||||||||||||||||||||||||||
Notional | Value/ | Value/ | Due from | ||||||||||||||||||||||||
Notional | Cost | Expiration | Unrealized | Unrealized | (Due to) | ||||||||||||||||||||||
Contracts to Buy (Sell) | Amount | (Proceeds) | Date | Appreciation | Depreciation | Brokers | |||||||||||||||||||||
30 | US Treasury 2 yr Notes | $ | 6,134,531 | $ | 6,139,524 | 6/28/24 | $ | — | $ | (4,993 | ) | $ | (6,094 | ) | |||||||||||||
87 | US Treasury 5 yr Notes | 9,310,360 | 9,299,011 | 6/28/24 | 11,349 | — | (10,194 | ) | |||||||||||||||||||
23 | US Treasury 10 yr Notes | 2,548,328 | 2,537,042 | 6/18/24 | 11,286 | — | (1,797 | ) | |||||||||||||||||||
15 | US Treasury 10 yr Ultra Notes | 1,719,141 | 1,702,529 | 6/18/24 | 16,612 | — | 234 | ||||||||||||||||||||
Total Futures Contracts | $ | 19,678,106 | $ | 39,247 | $ | (4,993 | ) | $ | (17,851 | ) |
The use of futures contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The notional amounts presented above represent the Fund’s total exposure in such contracts, whereas only the variation margin is reflected in the Fund’s net assets.
1 See Note 7 in “Notes to financial statements.”
Summary of abbreviations:
GNMA – Government National Mortgage Association
S.F. – Single Family
SOFR01M – Secured Overnight Financing Rate 1 Month
SOFR03M – Secured Overnight Financing Rate 3 Month
USBMMY3M – US Treasury 3 Month Bill Money Market Yield
USD – US Dollar
yr – Year
See accompanying notes, which are an integral part of the financial statements.
10
Delaware Ivy High Yield Fund
March 31, 2024 (Unaudited)
Principal amount° | Value (US $) | |||||||
Corporate Bonds — 101.70% | ||||||||
Automotive — 0.74% | ||||||||
Goodyear Tire & Rubber 5.25% 7/15/31 | 170,000 | $ | 155,077 | |||||
Wand NewCo 3 144A 7.625% 1/30/32 # | 40,000 | 41,402 | ||||||
196,479 | ||||||||
Banking — 1.55% | ||||||||
Bank of Montreal 7.70% 5/26/84 m | 200,000 | 202,850 | ||||||
Barclays 9.625% 12/15/29 m, y | 200,000 | 212,581 | ||||||
415,431 | ||||||||
Basic Industry — 9.09% | ||||||||
Arsenal AIC Parent 144A 8.00% 10/1/30 # | 100,000 | 105,113 | ||||||
Cleveland-Cliffs 144A 7.00% 3/15/32 # | 200,000 | 202,890 | ||||||
CP Atlas Buyer 144A 7.00% 12/1/28 # | 180,000 | 169,165 | ||||||
First Quantum Minerals 144A 8.625% 6/1/31 # | 260,000 | 253,066 | ||||||
FMG Resources August 2006 144A 5.875% 4/15/30 # | 220,000 | 216,652 | ||||||
NOVA Chemicals 144A 8.50%11/15/28 # | 220,000 | 234,436 | ||||||
Novelis 144A 4.75% 1/30/30 # | 340,000 | 313,976 | ||||||
Olympus Water US Holding 144A 9.75% 11/15/28 # | 200,000 | 213,293 | ||||||
Roller Bearing Co. of America 144A 4.375% 10/15/29 # | 340,000 | 311,736 | ||||||
Standard Industries 144A 3.375% 1/15/31 # | 310,000 | 260,259 | ||||||
Vibrantz Technologies 144A 9.00% 2/15/30 # | 165,000 | 152,559 | ||||||
2,433,145 | ||||||||
Capital Goods — 6.57% | ||||||||
Ardagh Metal Packaging Finance USA 144A 4.00% 9/1/29 # | 200,000 | 161,427 | ||||||
Bombardier | ||||||||
144A 6.00% 2/15/28 # | 141,000 | 138,853 | ||||||
144A 7.25% 7/1/31 # | 65,000 | 65,214 | ||||||
144A 7.50% 2/1/29 # | 115,000 | 118,548 | ||||||
144A 8.75% 11/15/30 # | 60,000 | 64,142 | ||||||
Clydesdale Acquisition Holdings | ||||||||
144A 6.625% 4/15/29 # | 50,000 | 50,011 | ||||||
144A 8.75% 4/15/30 # | 135,000 | 132,784 | ||||||
Esab 144A 6.25% 4/15/29 # | 55,000 | 55,326 | ||||||
Mauser Packaging Solutions Holding | ||||||||
144A 7.875% 8/15/26 # | 350,000 | 356,825 | ||||||
144A 9.25% 4/15/27 # | 105,000 | 104,282 | ||||||
Sealed Air 144A 5.00% 4/15/29 # | 140,000 | 134,528 | ||||||
TransDigm | ||||||||
144A 6.625% 3/1/32 # | 105,000 | 106,212 | ||||||
144A 6.875% 12/15/30 # | 265,000 | 270,431 | ||||||
1,758,583 | ||||||||
Consumer Goods — 1.50% | ||||||||
Acushnet 144A 7.375% 10/15/28 # | 97,000 | 100,603 | ||||||
Cerdia Finanz 144A 10.50% 2/15/27 # | 165,000 | 171,906 | ||||||
Fiesta Purchaser 144A 7.875% 3/1/31 # | 125,000 | 129,184 | ||||||
401,693 | ||||||||
Electric — 3.18% | ||||||||
Calpine | ||||||||
144A 4.625% 2/1/29 # | 50,000 | 46,327 | ||||||
144A 5.125% 3/15/28 # | 275,000 | 264,162 | ||||||
Vistra | ||||||||
144A 7.00% 12/15/26 #, µ, y | 365,000 | 361,767 | ||||||
144A 8.00% 10/15/26 #, µ, y | 175,000 | 179,251 | ||||||
851,507 | ||||||||
Energy — 13.42% | ||||||||
Ascent Resources Utica Holdings 144A 5.875% 6/30/29 # | 270,000 | 257,675 | ||||||
Callon Petroleum | ||||||||
144A 7.50% 6/15/30 # | 125,000 | 132,576 | ||||||
144A 8.00% 8/1/28 # | 335,000 | 351,326 | ||||||
Civitas Resources 144A 8.625% 11/1/30 # | 155,000 | 166,542 | ||||||
EQM Midstream Partners 144A 4.75% 1/15/31 # | 359,000 | 334,186 | ||||||
Genesis Energy | ||||||||
7.75% 2/1/28 | 135,000 | 135,782 | ||||||
8.00% 1/15/27 | 49,000 | 49,614 | ||||||
Hilcorp Energy I | ||||||||
144A 6.00% 4/15/30 # | 170,000 | 166,606 | ||||||
144A 6.00% 2/1/31 # | 30,000 | 29,282 | ||||||
144A 6.25% 4/15/32 # | 138,000 | 136,207 | ||||||
Kodiak Gas Services 144A 7.25% 2/15/29 # | 80,000 | 81,540 | ||||||
Murphy Oil 6.375% 7/15/28 | 288,000 | 290,129 | ||||||
Nabors Industries | ||||||||
144A 7.25% 1/15/26 # | 37,000 | 36,796 | ||||||
144A 9.125% 1/31/30 # | 110,000 | 114,455 | ||||||
Southwestern Energy | ||||||||
5.375% 2/1/29 | 108,000 | 104,990 |
11
Schedules of investments
Delaware Ivy High Yield Fund
Principal amount° | Value (US $) | |||||||
Corporate Bonds (continued) | ||||||||
Energy (continued) | ||||||||
Southwestern Energy | ||||||||
5.375% 3/15/30 | 269,000 | $ | 259,152 | |||||
Transocean 144A 8.00% 2/1/27 # | 220,000 | 218,516 | ||||||
USA Compression Partners | ||||||||
6.875% 9/1/27 | 60,000 | 60,180 | ||||||
144A 7.125% 3/15/29 # | 70,000 | 70,916 | ||||||
Vital Energy | ||||||||
144A 7.75% 7/31/29 # | 280,000 | 282,533 | ||||||
144A 7.875% 4/15/32 # | 55,000 | 55,916 | ||||||
Weatherford International 144A 8.625% 4/30/30 # | 245,000 | 255,974 | ||||||
3,590,893 | ||||||||
Financial Services — 3.37% | ||||||||
AerCap Holdings 5.875% 10/10/79 µ | 399,000 | 396,449 | ||||||
Air Lease 4.65% 6/15/26 m, y | 230,000 | 217,740 | ||||||
Castlelake Aviation Finance DAC 144A 5.00% 4/15/27 # | 297,000 | 286,344 | ||||||
900,533 | ||||||||
Healthcare — 9.53% | ||||||||
AthenaHealth Group 144A 6.50% 2/15/30 # | 160,000 | 146,505 | ||||||
Avantor Funding 144A 3.875% 11/1/29 # | 220,000 | 198,550 | ||||||
Bausch Health 144A 6.125% 2/1/27 # | 335,000 | 209,055 | ||||||
Catalent Pharma Solutions | ||||||||
144A 3.125% 2/15/29 # | 72,000 | 68,870 | ||||||
144A 3.50% 4/1/30 # | 15,000 | 14,299 | ||||||
Cheplapharm Arzneimittel 144A 5.50% 1/15/28 # | 240,000 | 228,929 | ||||||
CHS | ||||||||
144A 5.25% 5/15/30 # | 235,000 | 191,826 | ||||||
144A 6.125% 4/1/30 # | 37,000 | 26,713 | ||||||
144A 6.875% 4/15/29 # | 35,000 | 26,237 | ||||||
DaVita 144A 4.625% 6/1/30 # | 185,000 | 165,750 | ||||||
Legacy LifePoint Health 144A 4.375% 2/15/27 # | 115,000 | 109,679 | ||||||
Medline Borrower | ||||||||
144A 3.875% 4/1/29 # | 208,000 | 189,459 | ||||||
144A 5.25% 10/1/29 # | 262,000 | 247,835 | ||||||
Organon & Co. 144A 5.125% 4/30/31 # | 250,000 | 222,459 | ||||||
Surgery Center Holdings 144A 7.25% 4/15/32 # | 135,000 | 136,217 | ||||||
Tenet Healthcare | ||||||||
4.375% 1/15/30 | 240,000 | 222,024 | ||||||
6.125% 10/1/28 | 145,000 | 144,602 | ||||||
2,549,009 | ||||||||
Insurance — 5.81% | ||||||||
Ardonagh Finco 144A 7.75% 2/15/31 # | 200,000 | 199,301 | ||||||
Howden UK Refinance 144A 7.25% 2/15/31 # | 200,000 | 200,962 | ||||||
HUB International | ||||||||
144A 5.625% 12/1/29 # | 160,000 | 150,176 | ||||||
144A 7.375% 1/31/32 # | 145,000 | 146,067 | ||||||
Jones Deslauriers Insurance Management | ||||||||
144A 8.50% 3/15/30 # | 230,000 | 239,949 | ||||||
144A 10.50% 12/15/30 # | 245,000 | 259,133 | ||||||
NFP 144A 7.50% 10/1/30 # | 110,000 | 115,980 | ||||||
Panther Escrow Issuer 144A 7.125% 6/1/31 # | 130,000 | 132,276 | ||||||
USI 144A 7.50% 1/15/32 # | 110,000 | 110,340 | ||||||
1,554,184 | ||||||||
Leisure — 8.72% | ||||||||
Boyd Gaming 144A 4.75% 6/15/31 # | 510,000 | 469,140 | ||||||
Caesars Entertainment | ||||||||
144A 6.50% 2/15/32 # | 25,000 | 25,236 | ||||||
144A 7.00% 2/15/30 # | 280,000 | 287,591 | ||||||
Carnival | ||||||||
144A 5.75% 3/1/27 # | 152,000 | 150,535 | ||||||
144A 6.00% 5/1/29 # | 305,000 | 301,137 | ||||||
Light & Wonder International 144A 7.25% 11/15/29 # | 275,000 | 282,491 | ||||||
Royal Caribbean Cruises | ||||||||
144A 5.375% 7/15/27 # | 68,000 | 67,085 | ||||||
144A 5.50% 4/1/28 # | 338,000 | 334,291 | ||||||
144A 7.25% 1/15/30 # | 80,000 | 83,175 | ||||||
Scientific Games Holdings 144A 6.625% 3/1/30 # | 345,000 | 333,786 | ||||||
2,334,467 | ||||||||
Media — 11.13% | ||||||||
AMC Networks 4.25% 2/15/29 | 270,000 | 191,556 | ||||||
Arches Buyer 144A 6.125% 12/1/28 # | 315,000 | 264,231 | ||||||
CCO Holdings 144A 4.50% 8/15/30 # | 680,000 | 570,297 | ||||||
CMG Media 144A 8.875% 12/15/27 # | 390,000 | 258,781 | ||||||
CSC Holdings | ||||||||
144A 4.625% 12/1/30 # | 225,000 | 114,437 | ||||||
144A 5.00% 11/15/31 # | 275,000 | 139,317 | ||||||
Cumulus Media New Holdings 144A 6.75% 7/1/26 # | 265,000 | 143,375 | ||||||
Directv Financing 144A 5.875% 8/15/27 # | 395,000 | 373,931 | ||||||
DISH DBS 144A 5.75% 12/1/28 # | 370,000 | 254,978 |
12
Principal amount° | Value (US $) | |||||||
Corporate Bonds (continued) | ||||||||
Media (continued) | ||||||||
Gray Television | ||||||||
144A 4.75% 10/15/30 # | 245,000 | $ | 160,873 | |||||
144A 5.375% 11/15/31 # | 130,000 | 85,368 | ||||||
Nexstar Media 144A 4.75% 11/1/28 # | 180,000 | 164,183 | ||||||
Sirius XM Radio 144A 4.125% 7/1/30 # | 295,000 | 258,064 | ||||||
2,979,391 | ||||||||
Retail — 5.25% | ||||||||
Asbury Automotive Group 4.75% 3/1/30 | 185,000 | 170,548 | ||||||
Bath & Body Works | ||||||||
6.875% 11/1/35 | 215,000 | 220,017 | ||||||
6.95% 3/1/33 | 85,000 | 84,804 | ||||||
LSF9 Atlantis Holdings 144A 7.75% 2/15/26 # | 159,000 | 157,709 | ||||||
Murphy Oil USA | ||||||||
144A 3.75% 2/15/31 # | 75,000 | 65,569 | ||||||
4.75% 9/15/29 | 400,000 | 379,683 | ||||||
PetSmart 144A 7.75% 2/15/29 # | 335,000 | 326,401 | ||||||
1,404,731 | ||||||||
Services — 5.33% | ||||||||
GFL Environmental 144A 6.75% 1/15/31 # | 110,000 | 112,867 | ||||||
Prime Security Services Borrower | ||||||||
144A 3.375% 8/31/27 # | 270,000 | 248,269 | ||||||
144A 5.75% 4/15/26 # | 185,000 | 184,587 | ||||||
SRS Distribution | ||||||||
144A 6.00% 12/1/29 # | 80,000 | 81,807 | ||||||
144A 6.125% 7/1/29 # | 80,000 | 81,666 | ||||||
Staples 144A 7.50% 4/15/26 # | 179,000 | 174,871 | ||||||
United Rentals North America 3.875% 2/15/31 | 185,000 | 165,942 | ||||||
White Cap Buyer 144A 6.875% 10/15/28 # | 223,000 | 218,988 | ||||||
White Cap Parent 144A PIK 8.25% 3/15/26 #, > | 157,000 | 156,984 | ||||||
1,425,981 | ||||||||
Technology & Electronics — 5.84% | ||||||||
CommScope Technologies 144A 6.00% 6/15/25 # | 85,000 | 74,031 | ||||||
Entegris 144A 5.95% 6/15/30 # | 365,000 | 361,030 | ||||||
NCR Voyix 144A 5.125% 4/15/29 # | 259,000 | 240,509 | ||||||
Seagate HDD Cayman | ||||||||
5.75% 12/1/34 | 100,000 | 97,906 | ||||||
144A 8.25% 12/15/29 # | 90,000 | 96,795 | ||||||
Sensata Technologies 144A 4.00% 4/15/29 # | 160,000 | 146,260 | ||||||
SS&C Technologies 144A 5.50% 9/30/27 # | 210,000 | 205,507 | ||||||
UKG 144A 6.875% 2/1/31 # | 335,000 | 341,518 | ||||||
1,563,556 | ||||||||
Telecommunications — 9.83% | ||||||||
Altice France 144A 5.50% 10/15/29 # | 330,000 | 224,330 | ||||||
Altice France Holding 144A 6.00% 2/15/28 # | 200,000 | 57,132 | ||||||
Connect Finco 144A 6.75% 10/1/26 # | 380,000 | 372,763 | ||||||
Consolidated Communications | ||||||||
144A 5.00% 10/1/28 # | 30,000 | 25,033 | ||||||
144A 6.50% 10/1/28 # | 315,000 | 275,947 | ||||||
Digicel Intermediate Holdings 12.00% 5/25/27 | 1 | 1 | ||||||
Frontier Communications Holdings | ||||||||
144A 5.00% 5/1/28 # | 45,000 | 41,802 | ||||||
144A 5.875% 10/15/27 # | 365,000 | 353,658 | ||||||
5.875% 11/1/29 | 120,000 | 101,527 | ||||||
144A 6.75% 5/1/29 # | 120,000 | 107,074 | ||||||
144A 8.75% 5/15/30 # | 70,000 | 71,688 | ||||||
Northwest Fiber 144A 4.75% 4/30/27 # | 330,000 | 337,659 | ||||||
Sable International Finance 144A 5.75% 9/7/27 # | 200,000 | 193,141 | ||||||
Vmed O2 UK Financing I 144A 4.75% 7/15/31 # | 240,000 | 207,086 | ||||||
VZ Secured Financing 144A 5.00% 1/15/32 # | 305,000 | 262,170 | ||||||
2,631,011 | ||||||||
Transportation — 0.84% | ||||||||
Air Canada 144A 3.875% 8/15/26 # | 235,000 | 224,531 | ||||||
224,531 | ||||||||
Total Corporate Bonds | ||||||||
(cost $27,866,855) | 27,215,125 | |||||||
Total Value of Securities—101.70% | ||||||||
(cost $27,866,855) | $ | 27,215,125 |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2024, the aggregate value of Rule 144A securities was $23,351,971, which represents 87.27% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
m | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at March 31, 2024. Rate will reset at a future date. |
y | Perpetual security. Maturity date represents next call date. |
> | PIK. 100% of the income received was in the form of cash. |
13
Schedules of investments
Delaware Ivy High Yield Fund
Summary of abbreviations:
DAC – Designated Activity Company
PIK – Payment-in-kind
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
14
Delaware Ivy Multi-Asset Income Fund
March 31, 2024 (Unaudited)
Principal amount° | Value (US $) | |||||||
Agency Mortgage-Backed Securities — 3.70% | ||||||||
Fannie Mae S.F. 15 yr | ||||||||
2.00% 3/1/37 | 44,109 | $ | 39,373 | |||||
2.50% 8/1/36 | 47,109 | 42,933 | ||||||
3.00% 11/1/33 | 14,673 | 13,855 | ||||||
Fannie Mae S.F. 20 yr 4.00% 9/1/42 | 57,158 | 53,714 | ||||||
Fannie Mae S.F. 30 yr | ||||||||
2.00% 3/1/51 | 127,031 | 100,912 | ||||||
2.00% 9/1/51 | 41,815 | 33,206 | ||||||
2.50% 2/1/52 | 99,461 | 83,075 | ||||||
3.00% 1/1/50 | 268,586 | 234,359 | ||||||
3.00% 6/1/52 | 53,407 | 46,307 | ||||||
3.50% 6/1/51 | 255,820 | 230,274 | ||||||
3.50% 6/1/52 | 206,186 | 184,638 | ||||||
4.00% 5/1/51 | 42,774 | 40,274 | ||||||
4.50% 1/1/50 | 117,326 | 115,064 | ||||||
4.50% 10/1/52 | 299,312 | 285,014 | ||||||
4.50% 2/1/53 | 125,572 | 119,574 | ||||||
5.50% 8/1/52 | 125,261 | 124,910 | ||||||
5.50% 11/1/52 | 232,036 | 232,758 | ||||||
6.00% 6/1/53 | 99,380 | 100,278 | ||||||
6.00% 9/1/53 | 37,953 | 38,296 | ||||||
Freddie Mac S.F. 20 yr | ||||||||
2.00% 8/1/42 | 65,383 | 55,225 | ||||||
2.50% 9/1/42 | 33,944 | 29,473 | ||||||
3.00% 5/1/40 | 258,931 | 233,718 | ||||||
Freddie Mac S.F. 30 yr | ||||||||
2.00% 3/1/52 | 160,266 | 126,933 | ||||||
2.50% 7/1/50 | 323,614 | 270,058 | ||||||
4.00% 8/1/52 | 100,942 | 94,054 | ||||||
4.00% 9/1/52 | 42,876 | 39,772 | ||||||
4.50% 10/1/52 | 38,384 | 36,551 | ||||||
5.00% 9/1/52 | 140,829 | 138,613 | ||||||
5.00% 6/1/53 | 174,012 | 169,766 | ||||||
5.50% 9/1/52 | 29,119 | 29,233 | ||||||
5.50% 10/1/52 | 41,691 | 41,566 | ||||||
5.50% 6/1/53 | 99,877 | 99,374 | ||||||
Total Agency Mortgage-Backed Securities | ||||||||
(cost $3,661,883) | 3,483,150 | |||||||
Convertible Bond — 1.01% | ||||||||
New Cotai 5.00% exercise price $0.40, maturity date 2/2/27 = | 373,851 | 952,618 | ||||||
Total Convertible Bond | ||||||||
(cost $365,514) | 952,618 | |||||||
Corporate Bonds — 30.20% | ||||||||
Banking — 1.90% | ||||||||
Bank of America | ||||||||
5.468% 1/23/35 µ | 35,000 | 35,241 | ||||||
5.819% 9/15/29 µ | 15,000 | 15,386 | ||||||
6.204% 11/10/28 µ | 95,000 | 98,318 | ||||||
Bank of Montreal 7.70% 5/26/84 µ | 200,000 | 202,850 | ||||||
Bank of New York Mellon 4.70% 9/20/25 µ, y | 40,000 | 39,349 | ||||||
Barclays 9.625% 12/15/29 µ, y | 200,000 | 212,580 | ||||||
Citigroup 5.61% 9/29/26 µ | 25,000 | 25,046 | ||||||
Deutsche Bank 6.72% 1/18/29 µ | 150,000 | 155,217 | ||||||
Fifth Third Bancorp 6.361% 10/27/28 µ | 43,000 | 44,022 | ||||||
Goldman Sachs Group | ||||||||
1.542% 9/10/27 µ | 180,000 | 164,520 | ||||||
6.484% 10/24/29 µ | 30,000 | 31,573 | ||||||
Huntington Bancshares 6.208% 8/21/29 µ | 25,000 | 25,604 | ||||||
JPMorgan Chase & Co. | ||||||||
5.012% 1/23/30 µ | 170,000 | 169,374 | ||||||
5.336% 1/23/35 µ | 20,000 | 20,086 | ||||||
6.254% 10/23/34 µ | 27,000 | 28,859 | ||||||
KeyBank 5.85% 11/15/27 | 30,000 | 29,767 | ||||||
KeyCorp 6.401% 3/6/35 µ | 30,000 | 30,655 | ||||||
Morgan Stanley | ||||||||
6.296% 10/18/28 µ | 33,000 | 34,153 | ||||||
6.407% 11/1/29 µ | 70,000 | 73,430 | ||||||
6.627% 11/1/34 µ | 55,000 | 60,206 | ||||||
PNC Financial Services Group | ||||||||
5.676% 1/22/35 µ | 35,000 | 35,335 | ||||||
6.875% 10/20/34 µ | 35,000 | 38,346 | ||||||
State Street 4.993% 3/18/27 | 45,000 | 45,100 | ||||||
SVB Financial Group 4.57% 4/29/33 ‡ | 74,000 | 46,944 | ||||||
US Bancorp | ||||||||
4.653% 2/1/29 µ | 56,000 | 54,911 | ||||||
5.384% 1/23/30 µ | 15,000 | 15,070 | ||||||
5.678% 1/23/35 µ | 35,000 | 35,355 | ||||||
6.787% 10/26/27 µ | 25,000 | 25,895 | ||||||
1,793,192 | ||||||||
Basic Industry — 1.29% | ||||||||
BHP Billiton Finance USA 5.25% 9/8/30 | 15,000 | 15,262 | ||||||
Cleveland-Cliffs 144A 7.00% 3/15/32 # | 165,000 | 167,384 | ||||||
First Quantum Minerals 144A 6.875% 10/15/27 # | 200,000 | 191,984 |
15
Schedules of investments
Delaware Ivy Multi-Asset Income Fund
Principal amount° | Value (US $) | |||||||
Corporate Bonds (continued) | ||||||||
Basic Industry (continued) | ||||||||
FMG Resources August 2006 144A 5.875% 4/15/30 # | 285,000 | $ | 280,662 | |||||
Freeport-McMoRan 5.45% 3/15/43 | 60,000 | 57,494 | ||||||
LYB International Finance III | ||||||||
3.625% 4/1/51 | 40,000 | 28,362 | ||||||
5.50% 3/1/34 | 100,000 | 100,225 | ||||||
NOVA Chemicals 144A 8.50% 11/15/28 # | 35,000 | 37,297 | ||||||
Novelis 144A 4.75% 1/30/30 # | 295,000 | 272,420 | ||||||
Sherwin-Williams 3.30% 5/15/50 | 90,000 | 63,694 | ||||||
1,214,784 | ||||||||
Brokerage — 0.45% | ||||||||
Jefferies Financial Group | ||||||||
5.875% 7/21/28 | 36,000 | 36,667 | ||||||
6.05% 3/12/25 | 50,000 | 50,056 | ||||||
NFP | ||||||||
144A 6.875% 8/15/28 # | 219,000 | 221,965 | ||||||
144A 7.50% 10/1/30 # | 110,000 | 115,980 | ||||||
424,668 | ||||||||
Capital Goods — 3.56% | ||||||||
ARD Finance 144A PIK 6.50% 6/30/27 #, > | 320,000 | 107,420 | ||||||
Ardagh Metal Packaging Finance USA | ||||||||
144A 3.25% 9/1/28 # | 150,000 | 129,732 | ||||||
144A 4.00% 9/1/29 # | 200,000 | 161,427 | ||||||
Bombardier | ||||||||
144A 6.00% 2/15/28 # | 130,000 | 128,021 | ||||||
144A 7.25% 7/1/31 # | 60,000 | 60,197 | ||||||
144A 7.50% 2/1/29 # | 134,000 | 138,134 | ||||||
144A 8.75% 11/15/30 # | 55,000 | 58,796 | ||||||
Canpack 144A 3.875% 11/15/29 # | 154,000 | 136,446 | ||||||
Clydesdale Acquisition Holdings 144A 8.75% 4/15/30 # | 115,000 | 113,112 | ||||||
CP Atlas Buyer 144A 7.00% 12/1/28 # | 135,000 | 126,874 | ||||||
Esab 144A 6.25% 4/15/29 # | 55,000 | 55,326 | ||||||
GFL Environmental | ||||||||
144A 5.125% 12/15/26 # | 58,000 | 57,032 | ||||||
144A 6.75% 1/15/31 # | 90,000 | 92,346 | ||||||
Mauser Packaging Solutions Holding | ||||||||
144A 7.875% 8/15/26 # | 175,000 | 178,413 | ||||||
144A 9.25% 4/15/27 # | 65,000 | 64,556 | ||||||
Northrop Grumman 5.20% 6/1/54 | 65,000 | 63,355 | ||||||
Roller Bearing Co. of America 144A 4.375% 10/15/29 # | 255,000 | 233,802 | ||||||
Sealed Air 144A 5.00% 4/15/29 # | 160,000 | 153,746 | ||||||
SRS Distribution | ||||||||
144A 6.00% 12/1/29 # | 65,000 | 66,468 | ||||||
144A 6.125% 7/1/29 # | 65,000 | 66,353 | ||||||
Standard Industries | ||||||||
144A 3.375% 1/15/31 # | 225,000 | 188,897 | ||||||
144A 4.375% 7/15/30 # | 30,000 | 26,977 | ||||||
144A 4.75% 1/15/28 # | 28,000 | 26,745 | ||||||
Teledyne Technologies 2.25% 4/1/28 | 25,000 | 22,492 | ||||||
TransDigm | ||||||||
144A 6.625% 3/1/32 # | 55,000 | 55,635 | ||||||
144A 6.875% 12/15/30 # | 240,000 | 244,919 | ||||||
Wesco Aircraft Holdings 144A 8.50% 11/15/24 #, ‡ | 657,000 | 213,525 | ||||||
White Cap Buyer 144A 6.875% 10/15/28 # | 245,000 | 240,592 | ||||||
White Cap Parent 144A PIK 8.25% 3/15/26 #, > | 143,000 | 142,985 | ||||||
3,354,323 | ||||||||
Communications — 5.53% | ||||||||
Advantage Sales & Marketing 144A 6.50% 11/15/28 # | 116,000 | 109,386 | ||||||
Altice France 144A 5.125% 7/15/29 # | 254,000 | 171,983 | ||||||
AMC Networks 4.25% 2/15/29 | 165,000 | 117,062 | ||||||
American Tower | ||||||||
2.30% 9/15/31 | 30,000 | 24,503 | ||||||
5.20% 2/15/29 | 75,000 | 75,001 | ||||||
5.45% 2/15/34 | 40,000 | 40,080 | ||||||
AT&T 3.50% 9/15/53 | 60,000 | 42,365 | ||||||
CCO Holdings | ||||||||
144A 4.50% 8/15/30 # | 336,000 | 281,794 | ||||||
144A 5.375% 6/1/29 # | 175,000 | 160,328 | ||||||
Charter Communications Operating 3.85% 4/1/61 | 55,000 | 32,670 | ||||||
CMG Media 144A 8.875% 12/15/27 # | 230,000 | 152,614 | ||||||
Comcast | ||||||||
3.375% 8/15/25 | 125,000 | 122,203 | ||||||
4.55% 1/15/29 | 25,000 | 24,811 | ||||||
Connect Finco 144A 6.75% 10/1/26 # | 200,000 | 196,191 | ||||||
Consolidated Communications | ||||||||
144A 5.00% 10/1/28 # | 2,000 | 1,669 | ||||||
144A 6.50% 10/1/28 # | 350,000 | 306,608 |
16
Principal amount° | Value (US $) | |||||||||||
Corporate Bonds (continued) | ||||||||||||
Communications (continued) | ||||||||||||
CSC Holdings | ||||||||||||
144A 5.00% 11/15/31 # | 254,000 | $ | 128,678 | |||||||||
144A 5.375% 2/1/28 # | 285,000 | 245,380 | ||||||||||
144A 5.75% 1/15/30 # | 202,000 | 107,094 | ||||||||||
Cumulus Media New Holdings 144A 6.75% 7/1/26 # | 420,000 | 227,235 | ||||||||||
Digicel Intermediate Holdings 12.00% 5/25/27 | 1 | 1 | ||||||||||
Directv Financing 144A 5.875% 8/15/27 # | 238,000 | 225,305 | ||||||||||
Discovery Communications 4.00% 9/15/55 | 100,000 | 68,492 | ||||||||||
DISH DBS 144A 5.75% 12/1/28 # | 385,000 | 265,315 | ||||||||||
Frontier Communications Holdings | ||||||||||||
144A 5.00% 5/1/28 # | 31,000 | 28,797 | ||||||||||
144A 5.875% 10/15/27 # | 234,000 | 226,729 | ||||||||||
5.875% 11/1/29 | 60,847 | 51,480 | ||||||||||
144A 6.75% 5/1/29 # | 99,000 | 88,336 | ||||||||||
Gray Television | ||||||||||||
144A 4.75% 10/15/30 # | 15,000 | 9,849 | ||||||||||
144A 5.375% 11/15/31 # | 340,000 | 223,269 | ||||||||||
Matterhorn Telecom 3.125% 9/15/26 | EUR | 69,000 | 72,580 | |||||||||
Northwest Fiber 144A 4.75% 4/30/27 # | 380,000 | 388,819 | ||||||||||
Rogers Communications | ||||||||||||
5.00%2/15/29 | 60,000 | 59,609 | ||||||||||
5.30%2/15/34 | 65,000 | 64,445 | ||||||||||
Sable International Finance 144A 5.75% 9/7/27 # | 240,000 | 231,769 | ||||||||||
Sirius XM Radio 144A 4.125% 7/1/30 # | 240,000 | 209,950 | ||||||||||
Sprint Capital 6.875% 11/15/28 | 30,000 | 31,993 | ||||||||||
T-Mobile USA 5.75% 1/15/34 | 75,000 | 78,144 | ||||||||||
Verizon Communications | ||||||||||||
2.875%11/20/50 | 35,000 | 22,880 | ||||||||||
5.50%2/23/54 | 65,000 | 65,749 | ||||||||||
Vmed O2 UK Financing I 144A 4.75% 7/15/31 # | 265,000 | 228,658 | ||||||||||
5,209,824 | ||||||||||||
Consumer Cyclical — 3.95% | ||||||||||||
Allison Transmission 144A 5.875% 6/1/29 # | 120,000 | 118,922 | ||||||||||
Amazon.com 2.50% 6/3/50 | 105,000 | 67,076 | ||||||||||
Arches Buyer 144A 6.125% 12/1/28 # | 294,000 | 246,616 | ||||||||||
Asbury Automotive Group | ||||||||||||
144A 4.625% 11/15/29 # | 3,000 | 2,771 | ||||||||||
4.75%3/1/30 | 170,830 | 157,485 | ||||||||||
Bath & Body Works 6.875% 11/1/35 | 270,000 | 276,300 | ||||||||||
Boyd Gaming 144A 4.75% 6/15/31 # | 275,000 | 252,967 | ||||||||||
Caesars Entertainment | ||||||||||||
144A 6.50% 2/15/32 # | 85,000 | 85,802 | ||||||||||
144A 7.00% 2/15/30 # | 275,000 | 282,455 | ||||||||||
Carnival | ||||||||||||
144A 5.75% 3/1/27 # | 71,000 | 70,316 | ||||||||||
144A 6.00% 5/1/29 # | 335,000 | 330,757 | ||||||||||
Clarios Global 144A 8.50% 5/15/27 # | 175,000 | 175,593 | ||||||||||
General Motors | ||||||||||||
5.40%4/1/48 | 41,000 | 37,644 | ||||||||||
5.95%4/1/49 | 14,000 | 13,817 | ||||||||||
General Motors Financial 5.75% 2/8/31 | 20,000 | 20,224 | ||||||||||
Light & Wonder International 144A 7.25% 11/15/29 # | 240,000 | 246,538 | ||||||||||
LSF9 Atlantis Holdings 144A 7.75% 2/15/26 # | 141,000 | 139,855 | ||||||||||
Murphy Oil USA 4.75% 9/15/29 | 45,000 | 42,714 | ||||||||||
PetSmart 144A 7.75% 2/15/29 # | 340,000 | 331,273 | ||||||||||
Royal Caribbean Cruises | ||||||||||||
144A 5.50% 4/1/28 # | 239,000 | 236,378 | ||||||||||
144A 7.25% 1/15/30 # | 70,000 | 72,778 | ||||||||||
Scientific Games Holdings 144A 6.625% 3/1/30 # | 300,000 | 290,249 | ||||||||||
Staples 144A 7.50% 4/15/26 # | 159,000 | 155,333 | ||||||||||
VICI Properties 4.95% 2/15/30 | 75,000 | 72,584 | ||||||||||
3,726,447 | ||||||||||||
Consumer Non-Cyclical — 2.80% | ||||||||||||
AbbVie | ||||||||||||
4.95%3/15/31 | 90,000 | 90,687 | ||||||||||
5.35%3/15/44 | 25,000 | 25,508 | ||||||||||
Acushnet 144A 7.375% 10/15/28 # | 84,000 | 87,120 | ||||||||||
Amgen | ||||||||||||
5.15% 3/2/28 | 30,000 | 30,207 | ||||||||||
5.25% 3/2/30 | 35,000 | 35,545 | ||||||||||
5.25% 3/2/33 | 37,000 | 37,328 | ||||||||||
Bunge Limited Finance 2.75% 5/14/31 | 65,000 | 56,003 | ||||||||||
Cardinal Health 5.125% 2/15/29 | 55,000 | 55,131 |
17
Schedules of investments
Delaware Ivy Multi-Asset Income Fund
Principal amount° | Value (US $) | |||||||
Corporate Bonds (continued) | ||||||||
Consumer Non-Cyclical (continued) | ||||||||
Catalent Pharma Solutions | ||||||||
144A 3.125% 2/15/29 # | 70,000 | $ | 66,957 | |||||
144A 3.50% 4/1/30 # | 5,000 | 4,766 | ||||||
CHS 144A 5.25% 5/15/30 # | 210,000 | 171,419 | ||||||
DaVita | ||||||||
144A 3.75% 2/15/31 # | 115,000 | 96,384 | ||||||
144A 4.625% 6/1/30 # | 70,000 | 62,716 | ||||||
Fiesta Purchaser 144A 7.875% 3/1/31 # | 142,000 | 146,753 | ||||||
Gilead Sciences 5.55% 10/15/53 | 40,000 | 41,434 | ||||||
HCA | ||||||||
3.50% 7/15/51 | 42,000 | 29,035 | ||||||
5.45% 4/1/31 | 30,000 | 30,167 | ||||||
6.00% 4/1/54 | 85,000 | 86,349 | ||||||
Heartland Dental 144A 8.50% 5/1/26 # | 247,000 | 245,161 | ||||||
Legacy LifePoint Health 144A 4.375% 2/15/27 # | 95,000 | 90,604 | ||||||
MajorDrive Holdings IV 144A 6.375% 6/1/29 # | 239,000 | 224,385 | ||||||
Medline Borrower | ||||||||
144A 3.875% 4/1/29 # | 139,000 | 126,610 | ||||||
144A 5.25% 10/1/29 # | 200,000 | 189,187 | ||||||
Royalty Pharma 3.35% 9/2/51 | 175,000 | 115,208 | ||||||
Surgery Center Holdings 144A 7.25% 4/15/32 # | 130,000 | 131,172 | ||||||
Tenet Healthcare | ||||||||
4.375% 1/15/30 | 215,000 | 198,897 | ||||||
6.125% 10/1/28 | 135,000 | 134,629 | ||||||
Zoetis 5.40% 11/14/25 | 25,000 | 25,041 | ||||||
2,634,403 | ||||||||
Electric — 1.74% | ||||||||
American Electric Power 5.699% 8/15/25 | 170,000 | 170,413 | ||||||
Berkshire Hathaway Energy 2.85% 5/15/51 | 35,000 | 22,566 | ||||||
Calpine | ||||||||
144A 5.00% 2/1/31 # | 180,000 | 165,299 | ||||||
144A 5.125% 3/15/28 # | 170,000 | 163,300 | ||||||
Constellation Energy Generation 5.75% 3/15/54 | 45,000 | 45,107 | ||||||
DTE Energy 5.10% 3/1/29 | 45,000 | 44,839 | ||||||
Duke Energy Carolinas 4.95% 1/15/33 | 110,000 | 109,476 | ||||||
NextEra Energy Capital Holdings | ||||||||
3.00% 1/15/52 | 40,000 | 25,890 | ||||||
5.55% 3/15/54 | 20,000 | 19,885 | ||||||
5.749% 9/1/25 | 20,000 | 20,092 | ||||||
Oglethorpe Power | ||||||||
3.75% 8/1/50 | 35,000 | 25,389 | ||||||
144A 6.20% 12/1/53 # | 10,000 | 10,522 | ||||||
Pacific Gas & Electric | ||||||||
3.30% 8/1/40 | 40,000 | 29,400 | ||||||
4.95% 7/1/50 | 175,000 | 150,684 | ||||||
PacifiCorp | ||||||||
5.10% 2/15/29 | 10,000 | 10,080 | ||||||
5.45% 2/15/34 | 5,000 | 5,019 | ||||||
5.80% 1/15/55 | 5,000 | 4,935 | ||||||
Southern California Edison 5.20% 6/1/34 | 105,000 | 103,995 | ||||||
Vistra 144A 7.00% 12/15/26 #, µ, y | 380,000 | 376,633 | ||||||
Vistra Operations | ||||||||
144A 4.30% 7/15/29 # | 109,000 | 102,325 | ||||||
144A 6.95% 10/15/33 # | 30,000 | 32,049 | ||||||
1,637,898 | ||||||||
Energy — 4.02% | ||||||||
Ascent Resources Utica Holdings | ||||||||
144A 5.875% 6/30/29 # | 219,000 | 209,003 | ||||||
144A 7.00% 11/1/26 # | 154,000 | 154,491 | ||||||
Callon Petroleum | ||||||||
144A 7.50% 6/15/30 # | 145,000 | 153,788 | ||||||
144A 8.00% 8/1/28 # | 190,000 | 199,259 | ||||||
Cheniere Energy Partners 4.50% 10/1/29 | 95,000 | 90,509 | ||||||
Civitas Resources 144A 8.625% 11/1/30 # | 130,000 | 139,680 | ||||||
Diamondback Energy | ||||||||
3.125% 3/24/31 | 105,000 | 93,075 | ||||||
4.25% 3/15/52 | 74,000 | 59,972 | ||||||
Enbridge 6.70% 11/15/53 | 30,000 | 33,935 | ||||||
Energy Transfer | ||||||||
5.75% 2/15/33 | 135,000 | 137,236 | ||||||
5.95% 5/15/54 | 60,000 | 59,914 | ||||||
EQM Midstream Partners | ||||||||
144A 4.75% 1/15/31 # | 255,000 | 237,374 | ||||||
6.50% 7/15/48 | 90,000 | 90,334 | ||||||
Genesis Energy | ||||||||
7.75% 2/1/28 | 130,000 | 130,753 | ||||||
8.00% 1/15/27 | 64,000 | 64,802 | ||||||
Hilcorp Energy I | ||||||||
144A 6.00% 2/1/31 # | 25,000 | 24,402 | ||||||
144A 6.25% 4/15/32 # | 250,000 | 246,753 | ||||||
Kinder Morgan | ||||||||
5.00% 2/1/29 | 15,000 | 14,948 | ||||||
5.20% 6/1/33 | 20,000 | 19,707 |
18
Principal amount° | Value (US $) | |||||||
Corporate Bonds (continued) | ||||||||
Energy (continued) | ||||||||
Kodiak Gas Services 144A 7.25% 2/15/29 # | 60,000 | $ | 61,155 | |||||
Murphy Oil 6.375% 7/15/28 | 235,000 | 236,737 | ||||||
Nabors Industries | ||||||||
144A 7.25% 1/15/26 # | 31,000 | 30,829 | ||||||
144A 9.125% 1/31/30 # | 90,000 | 93,645 | ||||||
NuStar Logistics | ||||||||
6.00% 6/1/26 | 146,000 | 145,448 | ||||||
6.375% 10/1/30 | 145,000 | 146,071 | ||||||
Occidental Petroleum 6.125% 1/1/31 | 123,000 | 127,498 | ||||||
ONEOK | ||||||||
5.65% 11/1/28 | 20,000 | 20,455 | ||||||
5.80% 11/1/30 | 25,000 | 25,775 | ||||||
6.05% 9/1/33 | 17,000 | 17,738 | ||||||
Targa Resources Partners 5.00% 1/15/28 | 20,000 | 19,728 | ||||||
Transocean 144A 8.00% 2/1/27 # | 196,000 | 194,678 | ||||||
USA Compression Partners | ||||||||
6.875% 9/1/27 | 200,000 | 200,601 | ||||||
144A 7.125% 3/15/29 # | 25,000 | 25,327 | ||||||
Vital Energy 144A 7.875% 4/15/32 # | 50,000 | 50,833 | ||||||
Weatherford International 144A 8.625% 4/30/30 # | 225,000 | 235,079 | ||||||
3,791,532 | ||||||||
Finance Companies — 0.49% | ||||||||
AerCap Holdings 5.875% 10/10/79 µ | 225,000 | 223,562 | ||||||
AerCap Ireland Capital DAC 3.65% 7/21/27 | 150,000 | 141,915 | ||||||
Aviation Capital Group 144A 3.50% 11/1/27 # | 105,000 | 97,772 | ||||||
463,249 | ||||||||
Financials — 0.13% | ||||||||
Air Lease 4.65% 6/15/26 µ, y | 130,000 | 123,071 | ||||||
123,071 | ||||||||
Insurance — 1.86% | ||||||||
American International Group 5.125% 3/27/33 | 35,000 | 34,828 | ||||||
Aon 2.90% 8/23/51 | 25,000 | 15,942 | ||||||
Aon North America | ||||||||
5.30% 3/1/31 | 70,000 | 70,572 | ||||||
5.75% 3/1/54 | 10,000 | 10,262 | ||||||
Ardonagh Finco 144A 7.75% 2/15/31 # | 200,000 | 199,301 | ||||||
Athene Global Funding 144A 1.985% 8/19/28 # | 30,000 | 25,930 | ||||||
Athene Holding 6.25% 4/1/54 | 20,000 | 20,322 | ||||||
Howden UK Refinance | ||||||||
144A 7.25% 2/15/31 # | 200,000 | 200,962 | ||||||
144A 8.125% 2/15/32 # | 200,000 | 201,887 | ||||||
HUB International | ||||||||
144A 5.625% 12/1/29 # | 130,000 | 122,018 | ||||||
144A 7.375% 1/31/32 # | 120,000 | 120,883 | ||||||
Jones Deslauriers Insurance | ||||||||
Management | ||||||||
144A 8.50% 3/15/30 # | 205,000 | 213,867 | ||||||
144A 10.50% 12/15/30 # | 155,000 | 163,941 | ||||||
New York Life Global Funding 144A 5.45% 9/18/26 # | 60,000 | 60,511 | ||||||
Panther Escrow Issuer 144A 7.125% 6/1/31 # | 125,000 | 127,189 | ||||||
UnitedHealth Group | ||||||||
4.90% 4/15/31 | 40,000 | 40,036 | ||||||
5.375% 4/15/54 | 35,000 | 35,623 | ||||||
USI 144A 7.50% 1/15/32 # | 90,000 | 90,278 | ||||||
1,754,352 | ||||||||
Real Estate Investment Trusts — 0.10% | ||||||||
American Homes 4 Rent | ||||||||
3.625% 4/15/32 | 15,000 | 13,196 | ||||||
5.50% 2/1/34 | 10,000 | 9,974 | ||||||
Extra Space Storage 5.40% 2/1/34 | 75,000 | 74,698 | ||||||
97,868 | ||||||||
Technology — 2.32% | ||||||||
Autodesk 2.40% 12/15/31 | 20,000 | 16,759 | ||||||
CDW | ||||||||
2.67% 12/1/26 | 145,000 | 134,791 | ||||||
3.276% 12/1/28 | 45,000 | 41,099 | ||||||
CommScope Technologies 144A 6.00% 6/15/25 # | 97,000 | 84,482 | ||||||
Entegris | ||||||||
144A 4.75% 4/15/29 # | 75,000 | 71,959 | ||||||
144A 5.95% 6/15/30 # | 375,000 | 370,921 | ||||||
Iron Mountain 144A 5.25% 7/15/30 # | 250,000 | 236,768 | ||||||
NCR Voyix 144A 5.00% 10/1/28 # | 228,000 | 212,784 | ||||||
Oracle | ||||||||
3.60% 4/1/50 | 77,000 | 55,675 | ||||||
4.65% 5/6/30 | 70,000 | 68,669 | ||||||
Seagate HDD Cayman | ||||||||
5.75% 12/1/34 | 88,000 | 86,158 | ||||||
144A 8.25% 12/15/29 # | 80,000 | 86,040 | ||||||
Sensata Technologies 144A 4.00% 4/15/29 # | 360,000 | 329,084 |
19
Schedules of investments
Delaware Ivy Multi-Asset Income Fund
Principal amount° | Value (US $) | |||||||
Corporate Bonds (continued) | ||||||||
Technology (continued) | ||||||||
UKG 144A 6.875% 2/1/31 # | 380,000 | $ | 387,394 | |||||
2,182,583 | ||||||||
Transportation — 0.06% | ||||||||
Burlington Northern Santa Fe 2.875% 6/15/52 | 25,000 | 16,394 | ||||||
ERAC USA Finance | ||||||||
144A 4.90% 5/1/33 # | 15,000 | 14,713 | ||||||
144A 5.00% 2/15/29 # | 25,000 | 25,056 | ||||||
56,163 | ||||||||
Total Corporate Bonds | ||||||||
(cost $29,332,531) | 28,464,357 | |||||||
Non-Agency Commercial Mortgage-Backed Securities — 0.93% | ||||||||
BANK | ||||||||
Series 2019-BN21 A5 2.851% 10/17/52 | 100,000 | 88,303 | ||||||
Series 2020-BN26 A4 2.403% 3/15/63 | 220,000 | 188,762 | ||||||
Series 2021-BN32 A5 2.643% 4/15/54 | 250,000 | 214,539 | ||||||
Benchmark Mortgage Trust | ||||||||
Series 2020-B17 A5 2.289% 3/15/53 | 225,000 | 187,868 | ||||||
Series 2022-B33 A5 3.458% 3/15/55 | 225,000 | 200,415 | ||||||
Total Non-Agency Commercial Mortgage- Backed Securities | ||||||||
(cost $903,944) | 879,887 | |||||||
Loan Agreements — 0.46% | ||||||||
Foresight Energy Operating | ||||||||
Tranche A 13.409% (SOFR03M + 8.10%) 6/30/27 • | 209,024 | 202,753 | ||||||
MLN US HoldCo | ||||||||
1st Lien 12.11% (SOFR03M + 6.80%) 10/18/27 • | 871,480 | 174,296 | ||||||
Tranche B 14.66% (SOFR03M + 9.35%) 10/18/27 • | 376,000 | 51,700 | ||||||
Total Loan Agreements | ||||||||
(cost $1,376,532) | 428,749 | |||||||
US Treasury Obligations — 1.12% | ||||||||
US Treasury Bonds | ||||||||
2.25% 8/15/46 | 30,000 | 20,542 | ||||||
4.25% 2/15/54 | 60,000 | 59,020 | ||||||
4.50% 2/15/44 | 75,000 | 75,434 | ||||||
US Treasury Notes | ||||||||
4.00% 2/15/34 | 485,000 | 477,043 | ||||||
4.25% 3/15/27 | 55,000 | 54,751 | ||||||
4.25% 2/28/29 | 270,000 | 270,401 | ||||||
4.25% 2/28/31 | 100,000 | 100,195 | ||||||
Total US Treasury Obligations | ||||||||
(cost $1,059,209) | 1,057,386 | |||||||
Number of | ||||||||
shares | ||||||||
Common Stocks — 54.48% | ||||||||
Basic Industry — 0.61% | ||||||||
Foresight Energy † | 31,163 | 577,142 | ||||||
Westmoreland Coal † | 145 | 254 | ||||||
577,396 | ||||||||
Capital Goods — 0.49% | ||||||||
Otis Worldwide | 4,648 | 461,407 | ||||||
461,407 | ||||||||
Consumer Cyclical — 0.07% | ||||||||
True Religion Apparel † | 2 | 62,738 | ||||||
62,738 | ||||||||
Consumer Discretionary — 4.27% | ||||||||
adidas | 2,573 | 574,607 | ||||||
Amadeus IT Group | 12,174 | 780,680 | ||||||
H & M Hennes & Mauritz Class B | 27,739 | 452,417 | ||||||
Kering | 890 | 351,761 | ||||||
LVMH Moet Hennessy Louis Vuitton | 431 | 387,658 | ||||||
Sodexo | 7,337 | 629,126 | ||||||
Studio City International Holdings † | 60,131 | 416,708 | ||||||
Studio City International Holdings ADR † | 28,486 | 197,408 | ||||||
Swatch Group | 1,009 | 234,279 | ||||||
4,024,644 | ||||||||
Consumer Non-Cyclical — 7.57% | ||||||||
Anheuser-Busch InBev | 7,727 | 470,666 | ||||||
Clorox | 5,291 | 810,105 | ||||||
Henry Schein † | 9,421 | 711,474 | ||||||
Ingredion | 6,277 | 733,467 | ||||||
Kimberly-Clark | 1,862 | 240,850 | ||||||
Lamb Weston Holdings | 5,340 | 568,870 | ||||||
Merck & Co. | 5,230 | 690,098 | ||||||
Pfizer | 22,676 | 629,259 | ||||||
Roche Holding | 1,887 | 480,616 | ||||||
Smith & Nephew | 61,732 | 772,606 | ||||||
Unilever | 20,527 | 1,029,979 | ||||||
7,137,990 |
20
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
Consumer Staples — 6.17% | ||||||||
Bunge Global | 4,039 | $ | 414,078 | |||||
Danone | 11,116 | 718,231 | ||||||
Diageo | 26,892 | 992,965 | ||||||
Essity Class B | 21,980 | 521,984 | ||||||
Estee Lauder Class A | 3,734 | 575,596 | ||||||
Kao | 11,500 | 429,674 | ||||||
Koninklijke Ahold Delhaize | 37,776 | 1,129,719 | ||||||
Nestle | 9,722 | 1,032,191 | ||||||
5,814,438 | ||||||||
Energy — 3.58% | ||||||||
BP ADR | 6,815 | 256,789 | ||||||
Chesapeake Energy | 2,647 | 235,133 | ||||||
Chord Energy | 901 | 160,594 | ||||||
Enbridge | 11,909 | 430,361 | ||||||
Kimbell Royalty Partners | 19,849 | 308,056 | ||||||
Parex Resources | 4,842 | 77,355 | ||||||
Permian Resources | 10,615 | 187,461 | ||||||
Schlumberger | 4,794 | 262,759 | ||||||
Shell | 15,472 | 512,610 | ||||||
TC Energy | 10,079 | 405,080 | ||||||
Tourmaline Oil | 3,473 | 162,375 | ||||||
Unit | 5,298 | 196,026 | ||||||
Valero Energy | 1,022 | 174,445 | ||||||
3,369,044 | ||||||||
Financial Services — 1.11% | ||||||||
New Cotai =, † | 318,315 | 324,442 | ||||||
Visa Class A | 2,577 | 719,189 | ||||||
1,043,631 | ||||||||
Healthcare — 1.35% | ||||||||
Novo Nordisk Class B | 4,128 | 529,513 | ||||||
Welltower | 7,990 | 746,585 | ||||||
1,276,098 | ||||||||
Home Builders — 0.09% | ||||||||
Lifestyle Communities | 3,360 | 34,310 | ||||||
Sekisui House | 2,000 | 45,369 | ||||||
79,679 | ||||||||
Industrials — 5.80% | ||||||||
Athens International Airport † | 20,215 | 185,376 | ||||||
Atlas Arteria | 116,228 | 403,694 | ||||||
CCR | 145,580 | 402,018 | ||||||
DSV | 1,440 | 234,079 | ||||||
Enav 144A # | 101,069 | 423,069 | ||||||
GrafTech International | 29,308 | 40,445 | ||||||
Intertek Group | 8,055 | 506,806 | ||||||
Knorr-Bremse | 6,152 | 465,260 | ||||||
Kone Class B | 7,414 | 345,059 | ||||||
Makita | 12,900 | 364,298 | ||||||
Pluxee † | 5,947 | 175,796 | ||||||
Sacyr | 120,844 | 445,874 | ||||||
Securitas Class B | 70,798 | 729,873 | ||||||
Transurban Group | 42,808 | 371,573 | ||||||
Vinci | 2,935 | 376,045 | ||||||
5,469,265 | ||||||||
Integrated Telecommunication Services — 0.01% | ||||||||
Helios Towers † | 7,359 | 8,815 | ||||||
8,815 | ||||||||
Materials — 4.95% | ||||||||
Air Liquide | 3,855 | 802,015 | ||||||
Air Products and Chemicals | 338 | 81,887 | ||||||
Alcoa | 6,971 | 235,550 | ||||||
Anglo American | 20,476 | 504,419 | ||||||
CF Industries Holdings | 1,343 | 111,751 | ||||||
Corteva | 6,499 | 374,797 | ||||||
CRH | 443 | 38,177 | ||||||
Endeavour Mining | 13,785 | 279,946 | ||||||
ERO Copper † | 11,466 | 221,101 | ||||||
Glencore † | 55,053 | 302,469 | ||||||
Hudbay Minerals | 42,295 | 296,065 | ||||||
Metallus † | 1,815 | 40,384 | ||||||
Newmont | 13,265 | 475,418 | ||||||
Nutrien | 7,558 | 410,475 | ||||||
Sylvamo | 1,899 | 117,244 | ||||||
West Fraser Timber | 1,539 | 132,886 | ||||||
Wheaton Precious Metals | 5,098 | 240,269 | ||||||
4,664,853 | ||||||||
Real Estate — 1.03% | ||||||||
Crown Castle | 3,656 | 386,915 | ||||||
Weyerhaeuser | 16,320 | 586,051 | ||||||
972,966 | ||||||||
Real Estate Operating Companies/Developer — 0.54% | ||||||||
Mitsubishi Estate | 16,000 | 290,131 | ||||||
Sumitomo Realty & Development | 5,900 | 218,882 | ||||||
509,013 | ||||||||
REIT Diversified — 1.07% | ||||||||
CapitaLand Ascendas REIT | 64,400 | 132,115 | ||||||
Charter Hall Group | 12,490 | 111,913 | ||||||
CK Asset Holdings | 12,500 | 51,425 | ||||||
DigitalBridge Group | 4,370 | 84,210 | ||||||
Fastighets Balder Class B † | 5,800 | 42,633 | ||||||
Inmobiliaria Colonial Socimi | 7,950 | 47,087 | ||||||
Land Securities Group | 8,510 | 70,696 | ||||||
Mapletree Logistics Trust | 98,900 | 106,939 | ||||||
Merlin Properties Socimi | 7,470 | 80,389 | ||||||
Shaftesbury Capital | 16,541 | 30,126 | ||||||
Sun Hung Kai Properties | 6,500 | 62,659 |
21
Schedules of investments
Delaware Ivy Multi-Asset Income Fund
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
REIT Diversified (continued) | ||||||||
United Urban Investment | 120 | $ | 121,997 | |||||
Wharf Real Estate Investment | 20,000 | 65,032 | ||||||
1,007,221 | ||||||||
REIT Healthcare — 0.44% | ||||||||
Alexandria Real Estate Equities | 2,570 | 331,299 | ||||||
American Healthcare REIT | 5,920 | 87,320 | ||||||
418,619 | ||||||||
REIT Industrial — 1.53% | ||||||||
First Industrial Realty Trust | 3,910 | 205,431 | ||||||
Goodman Group | 10,680 | 235,305 | ||||||
Mitsubishi Estate Logistics REIT Investment | 24 | 61,039 | ||||||
Nippon Prologis REIT | 65 | 115,762 | ||||||
Prologis | 4,650 | 605,523 | ||||||
Segro | 10,700 | 122,058 | ||||||
Warehouses De Pauw CVA | 3,260 | 93,061 | ||||||
1,438,179 | ||||||||
REIT Information Technology — 1.32% | ||||||||
American Tower | 870 | 171,903 | ||||||
Digital Realty Trust | 2,350 | 338,494 | ||||||
Equinix | 890 | 734,544 | ||||||
1,244,941 | ||||||||
REIT Lodging — 0.26% | ||||||||
Ryman Hospitality Properties | 1,300 | 150,293 | ||||||
Sunstone Hotel Investors | 8,380 | 93,353 | ||||||
243,646 | ||||||||
REIT Mall — 0.21% | ||||||||
Simon Property Group | 1,280 | 200,307 | ||||||
200,307 | ||||||||
REIT Manufactured Housing — 0.46% | ||||||||
Equity LifeStyle Properties | 2,380 | 153,272 | ||||||
Sun Communities | 2,210 | 284,162 | ||||||
437,434 | ||||||||
REIT Multifamily — 1.48% | ||||||||
Advance Residence Investment | 55 | 121,714 | ||||||
American Homes 4 Rent Class A | 6,500 | 239,070 | ||||||
AvalonBay Communities | 1,760 | 326,586 | ||||||
Boardwalk Real Estate Investment Trust | 1,330 | 76,665 | ||||||
CapitaLand Ascott Trust | 1,904 | 1,332 | ||||||
Equity Residential | 3,610 | 227,827 | ||||||
InterRent Real Estate Investment Trust | 6,840 | 68,473 | ||||||
LEG Immobilien † | 840 | 72,118 | ||||||
UNITE Group | 8,580 | 105,910 | ||||||
Vonovia | 5,190 | 153,419 | ||||||
1,393,114 | ||||||||
REIT Office — 0.37% | ||||||||
Castellum † | 3,570 | 46,993 | ||||||
Derwent London | 1,170 | 32,015 | ||||||
Fabege | 3,290 | 30,767 | ||||||
Gecina | 660 | 67,395 | ||||||
Nippon Building Fund | 27 | 107,907 | ||||||
Tokyu REIT | 40 | 42,542 | ||||||
Wihlborgs Fastigheter | 2,490 | 23,076 | ||||||
350,695 | ||||||||
REIT Retail — 0.28% | ||||||||
Frasers Centrepoint Trust | 73,700 | 119,536 | ||||||
Link REIT | 33,023 | 141,975 | ||||||
261,511 | ||||||||
REIT Self-Storage — 0.52% | ||||||||
Big Yellow Group | 6,330 | 85,007 | ||||||
National Storage REIT | 36,760 | 57,491 | ||||||
Public Storage | 1,190 | 345,172 | ||||||
487,670 | ||||||||
REIT Shopping Center — 0.82% | ||||||||
Agree Realty | 5,390 | 307,877 | ||||||
Federal Realty Investment Trust | 1,820 | 185,858 | ||||||
Kite Realty Group Trust | 12,700 | 275,336 | ||||||
769,071 | ||||||||
REIT Single Tenant — 0.39% | ||||||||
Realty Income | 6,730 | 364,093 | ||||||
364,093 | ||||||||
REIT Specialty — 0.50% | ||||||||
CBRE Group Class A † | 560 | 54,454 | ||||||
Corp Inmobiliaria Vesta ADR | 2,670 | 104,771 | ||||||
Invitation Homes | 8,770 | 312,300 | ||||||
471,525 | ||||||||
Technology — 1.85% | ||||||||
Cellnex Telecom 144A # | 15,158 | 535,895 | ||||||
NEXTDC † | 5,560 | 64,456 | ||||||
SAP | 5,864 | 1,141,658 | ||||||
1,742,009 | ||||||||
Utilities — 5.34% | ||||||||
APA Group | 43,457 | 238,161 | ||||||
Enel | 60,854 | 401,727 | ||||||
Hydro One 144A # | 12,412 | 361,946 | ||||||
National Grid | 30,313 | 407,847 |
22
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
Utilities (continued) | ||||||||
NextEra Energy | 7,074 | $ | 452,099 | |||||
Orsted 144A #, † | 7,693 | 429,876 | ||||||
Pennon Group | 46,736 | 381,946 | ||||||
Severn Trent | 10,726 | 334,384 | ||||||
Snam | 85,717 | 404,674 | ||||||
SSE | 19,817 | 412,699 | ||||||
Terna - Rete Elettrica Nazionale | 49,605 | 409,935 | ||||||
United Utilities Group | 31,918 | 414,536 | ||||||
Xcel Energy | 7,191 | 386,516 | ||||||
5,036,346 | ||||||||
Total Common Stocks | ||||||||
(cost $50,303,662) | 51,338,358 | |||||||
Preferred Stocks — 0.77% | ||||||||
Henkel AG & Co. 2.53% w | 8,849 | 711,232 | ||||||
True Religion Apparel 6.25% †, w | 2 | 10,280 | ||||||
Total Preferred Stocks | ||||||||
(cost $745,535) | 721,512 | |||||||
Exchange-Traded Funds — 5.79% | ||||||||
Vanguard Global ex-U.S. Real Estate ETF | 4,220 | 177,831 | ||||||
Vanguard High Dividend Yield ETF | 26,260 | 3,177,197 | ||||||
Vanguard International High Dividend Yield ETF | 30,559 | 2,102,459 | ||||||
Total Exchange-Traded Funds | ||||||||
(cost $4,967,113) | 5,457,487 | |||||||
Master Limited Partnerships — 0.30% | ||||||||
Black Stone Minerals | 17,872 | 285,595 | ||||||
Total Master Limited Partnerships | ||||||||
(cost $144,905) | 285,595 | |||||||
Warrants — 0.02% | ||||||||
California Resources † | 1,167 | 22,827 | ||||||
Total Warrants | ||||||||
(cost $101,593) | 22,827 | |||||||
Short-Term Investments — 0.56% | ||||||||
Money Market Mutual Funds — 0.56% | ||||||||
BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 5.20%) | 131,036 | 131,036 | ||||||
Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 5.21%) | 131,036 | 131,036 | ||||||
Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 5.34%) | 131,036 | 131,036 | ||||||
Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 5.22%) | 131,036 | 131,036 | ||||||
Total Short-Term Investments | ||||||||
(cost $524,144) | 524,144 | |||||||
Total Value of Securities—99.34% | ||||||||
(cost $93,486,565) | $ | 93,616,070 |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
= | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
m | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at March 31, 2024. Rate will reset at a future date. |
y | Perpetual security. Maturity date represents next call date. |
‡ | Non-income producing security. Security is currently in default. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2024, the aggregate value of Rule 144A securities was $21,554,711, which represents 22.87% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
> | PIK. 100% of the income received was in the form of cash. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at March 31, 2024. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. SOFR01M, SOFR03M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
† | Non-income producing security. |
w | Perpetual security with no stated maturity date. |
23
Schedules of investments
Delaware Ivy Multi-Asset Income Fund
The following futures contracts were outstanding at March 31, 2024:1
Futures Contracts
Exchange-Traded
Variation | |||||||||||||||||||||||||||
Margin | |||||||||||||||||||||||||||
Notional | Value/ | Value/ | Due from | ||||||||||||||||||||||||
Notional | Cost | Expiration | Unrealized | Unrealized | (Due to) | ||||||||||||||||||||||
Contracts to Buy (Sell) | Amount | (Proceeds) | Date | Appreciation | Depreciation | Brokers | |||||||||||||||||||||
1 | US Treasury 2 yr Notes | $ | 204,484 | $ | 204,651 | 6/28/24 | $ | — | $ | (167 | ) | $ | (203 | ) | |||||||||||||
6 | US Treasury 5 yr Notes | 642,094 | 641,311 | 6/28/24 | 783 | — | (703 | ) | |||||||||||||||||||
(2) | US Treasury 10 yr Ultra Notes | (229,218 | ) | (226,979 | ) | 6/18/24 | — | (2,239 | ) | (31 | ) | ||||||||||||||||
Total Futures Contracts | $ | 618,983 | $ | 783 | $ | (2,406 | ) | $ | (937 | ) |
The use of futures contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The notional amounts presented above represent the Fund’s total exposure in such contracts, whereas only the variation margin is reflected in the Fund’s net assets.
1 | See Note 7 in “Notes to financial statements.” |
Summary of abbreviations:
ADR – American Depositary Receipt
AG – Aktiengesellschaft
CVA – Certified Dutch Certificate
DAC – Designated Activity Company
ETF – Exchange-Traded Fund
PIK – Payment-in-kind
REIT – Real Estate Investment Trust
S.F. – Single Family
SOFR01M – Secured Overnight Financing Rate 1 Month
SOFR03M – Secured Overnight Financing Rate 3 Month
USD – US Dollar
yr – Year
Summary of currencies:
EUR – European Monetary Unit
See accompanying notes, which are an integral part of the financial statements.
24
Delaware Ivy Total Return Bond Fund
March 31, 2024 (Unaudited)
Principal amount° | Value (US $) | |||||||||||
Agency Mortgage-Backed Securities — 14.02% | ||||||||||||
Fannie Mae S.F. 20 yr 4.00% 8/1/42 | 99,452 | $ | 93,623 | |||||||||
Fannie Mae S.F. 30 yr 2.00% 9/1/51 | 159,580 | 126,725 | ||||||||||
2.50% 2/1/52 | 104,678 | 87,061 | ||||||||||
3.00% 5/1/51 | 93,696 | 81,013 | ||||||||||
3.50% 6/1/52 | 194,378 | 174,064 | ||||||||||
3.50% 9/1/52 | 99,259 | 88,882 | ||||||||||
4.00% 5/1/51 | 146,652 | 138,081 | ||||||||||
4.50% 4/1/50 | 84,140 | 81,605 | ||||||||||
4.50% 12/1/52 | 186,493 | 177,584 | ||||||||||
5.00% 9/1/52 | 129,758 | 126,705 | ||||||||||
5.50% 10/1/52 | 310,265 | 309,300 | ||||||||||
5.50% 3/1/53 | 278,192 | 276,912 | ||||||||||
Freddie Mac S.F. 15 yr 5.00% 6/1/38 | 110,493 | 110,324 | ||||||||||
Freddie Mac S.F. 20 yr 5.50% 6/1/43 | 112,717 | 113,315 | ||||||||||
Freddie Mac S.F. 30 yr | ||||||||||||
3.00% 12/1/46 | 39,493 | 34,726 | ||||||||||
4.50% 9/1/52 | 227,649 | 216,868 | ||||||||||
5.00% 6/1/53 | 485,832 | 475,343 | ||||||||||
5.50% 2/1/54 | 158,862 | 158,871 | ||||||||||
6.00% 12/1/52 | 129,575 | 130,980 | ||||||||||
6.00% 3/1/53 | 158,730 | 160,305 | ||||||||||
GNMA II S.F. 30 yr | ||||||||||||
3.00% 12/20/51 | 159,786 | 140,965 | ||||||||||
6.00% 2/20/54 | 61,887 | 62,464 | ||||||||||
Total Agency Mortgage-Backed Securities | ||||||||||||
(cost $3,377,999) | 3,365,716 | |||||||||||
| ||||||||||||
Corporate Bonds — 40.97% | ||||||||||||
Banking — 13.05% | ||||||||||||
Bank of America | ||||||||||||
5.468% 1/23/35 µ | 35,000 | 35,242 | ||||||||||
5.819% 9/15/29 µ | 33,000 | 33,848 | ||||||||||
6.204% 11/10/28 µ | 185,000 | 191,461 | ||||||||||
Barclays 7.385% 11/2/28 µ | 160,000 | 169,748 | ||||||||||
Commonwealth Bank of Australia 6.86% 11/9/32 µ | AUD | 500,000 | 342,693 | |||||||||
Credit Agricole | ||||||||||||
1.625% 6/5/30 µ | EUR | 100,000 | 104,550 | |||||||||
144A 5.365% 3/11/34 # | 35,000 | 35,120 | ||||||||||
144A 6.316% 10/3/29 #, µ | 250,000 | 259,307 | ||||||||||
Deutsche Bank 6.72% 1/18/29 µ | 205,000 | 212,130 | ||||||||||
Huntington National Bank 5.65% 1/10/30 | 175,000 | 176,060 | ||||||||||
JPMorgan Chase & Co. | ||||||||||||
1.764% 11/19/31 µ | 220,000 | 178,312 | ||||||||||
5.012% 1/23/30 µ | 25,000 | 24,908 | ||||||||||
5.336% 1/23/35 µ | 35,000 | 35,150 | ||||||||||
KeyCorp 6.401% 3/6/35 µ | 60,000 | 61,309 | ||||||||||
Morgan Stanley | ||||||||||||
2.95% 5/7/32 µ | EUR | 100,000 | 103,803 | |||||||||
5.173% 1/16/30 µ | 20,000 | 20,023 | ||||||||||
5.466% 1/18/35 µ | 20,000 | 20,186 | ||||||||||
6.296% 10/18/28 µ | 231,000 | 239,070 | ||||||||||
National Australia Bank 6.322% 8/3/32 µ | AUD | 500,000 | 335,472 | |||||||||
PNC Financial Services Group | ||||||||||||
5.676% 1/22/35 µ | 20,000 | 20,191 | ||||||||||
6.875% 10/20/34 µ | 30,000 | 32,868 | ||||||||||
State Street 4.993% 3/18/27 | 30,000 | 30,067 | ||||||||||
SVB Financial Group 4.57% 4/29/33 ‡ | 134,000 | 85,006 | ||||||||||
Turkiye Garanti Bankasi 144A 8.375% 2/28/34 #, µ | 200,000 | 200,138 | ||||||||||
US Bancorp | ||||||||||||
4.653% 2/1/29 µ | 133,000 | 130,413 | ||||||||||
5.384% 1/23/30 µ | 10,000 | 10,047 | ||||||||||
5.678% 1/23/35 µ | 20,000 | 20,203 | ||||||||||
6.787% 10/26/27 µ | 25,000 | 25,895 | ||||||||||
3,133,220 | ||||||||||||
Basic Industry — 1.06% | ||||||||||||
ELM for Firmenich International 3.75% 9/3/25 µ, ψ | EUR | 100,000 | 106,407 | |||||||||
Freeport-McMoRan 5.45% 3/15/43 | 50,000 | 47,912 | ||||||||||
LYB International Finance III 5.50% 3/1/34 | 100,000 | 100,225 | ||||||||||
254,544 | ||||||||||||
Brokerage — 0.69% | ||||||||||||
Jefferies Financial Group | ||||||||||||
2.625% 10/15/31 | 165,000 | 136,023 | ||||||||||
6.05% 3/12/25 | 30,000 | 30,034 | ||||||||||
166,057 | ||||||||||||
Capital Goods — 0.82% | ||||||||||||
Carrier Global 4.125% 5/29/28 | EUR | 100,000 | 110,411 |
25
Schedules of investments
Delaware Ivy Total Return Bond Fund
Principal amount° | Value (US $) | |||||||||||
Corporate Bonds (continued) | ||||||||||||
Capital Goods (continued) | ||||||||||||
Holcim Finance Luxembourg 0.50% 4/23/31 | EUR | 100,000 | $ | 87,488 | ||||||||
197,899 | ||||||||||||
Communications — 2.61% | ||||||||||||
American Tower | ||||||||||||
2.30% 9/15/31 | 75,000 | 61,256 | ||||||||||
5.20% 2/15/29 | 20,000 | 20,000 | ||||||||||
5.45% 2/15/34 | 15,000 | 15,030 | ||||||||||
Charter Communications Operating 3.85% 4/1/61 | 145,000 | 86,130 | ||||||||||
Discovery Communications 4.00% 9/15/55 | 110,000 | 75,341 | ||||||||||
Sprint Capital 6.875% 11/15/28 | 185,000 | 197,290 | ||||||||||
T-Mobile USA | ||||||||||||
3.375% 4/15/29 | 135,000 | 124,961 | ||||||||||
5.75% 1/15/34 | 45,000 | 46,887 | ||||||||||
626,895 | ||||||||||||
Consumer Cyclical — 0.88% | ||||||||||||
Edenred 3.625% 6/13/31 | EUR | 100,000 | 108,881 | |||||||||
General Motors Financial 5.75% 2/8/31 | 100,000 | 101,119 | ||||||||||
210,000 | ||||||||||||
Consumer Non-Cyclical — 1.38% | ||||||||||||
AbbVie 4.95% 3/15/31 | 100,000 | 100,764 | ||||||||||
Amgen 5.15% 3/2/28 | 130,000 | 130,896 | ||||||||||
HCA 5.45% 4/1/31 | 100,000 | 100,556 | ||||||||||
332,216 | ||||||||||||
Electric — 5.76% | ||||||||||||
AES Andes 144A 6.30% 3/15/29 # | 200,000 | 202,182 | ||||||||||
Appalachian Power 4.50% 8/1/32 | 85,000 | 79,797 | ||||||||||
Constellation Energy Generation 5.60% 3/1/28 | 125,000 | 127,374 | ||||||||||
DTE Energy 5.10% 3/1/29 | 25,000 | 24,911 | ||||||||||
Duke Energy 3.10% 6/15/28 | EUR | 200,000 | 212,046 | |||||||||
PacifiCorp | ||||||||||||
5.10%2/15/29 | 5,000 | 5,040 | ||||||||||
5.45%2/15/34 | 10,000 | 10,037 | ||||||||||
Southern 1.875% 9/15/81 µ | EUR | 200,000 | 189,475 | |||||||||
Southern California Edison 5.20% 6/1/34 | 100,000 | 99,043 | ||||||||||
Vistra Operations | ||||||||||||
144A 5.00% 7/31/27 # | 290,000 | 281,049 | ||||||||||
144A 5.625% 2/15/27 # | 68,000 | 67,010 | ||||||||||
144A 6.95% 10/15/33 # | 80,000 | 85,463 | ||||||||||
1,383,427 | ||||||||||||
Energy — 5.29% | ||||||||||||
Ampol 7.946% (BBSW3M + 3.60%) 12/9/80 • | AUD | 500,000 | 335,275 | |||||||||
Diamondback Energy 3.125% 3/24/31 | 125,000 | 110,803 | ||||||||||
Energy Transfer | ||||||||||||
5.95%5/15/54 | 20,000 | 19,972 | ||||||||||
6.50% 11/15/26 µ, y | 65,000 | 63,872 | ||||||||||
Galaxy Pipeline Assets Bidco 2.16% 3/31/34 | 169,888 | 146,444 | ||||||||||
Kinder Morgan | ||||||||||||
5.00%2/1/29 | 10,000 | 9,965 | ||||||||||
5.20%6/1/33 | 90,000 | 88,681 | ||||||||||
Occidental Petroleum 6.125% 1/1/31 | 162,000 | 167,924 | ||||||||||
Targa Resources Partners 5.00% 1/15/28 | 160,000 | 157,828 | ||||||||||
Thaioil Treasury Center 144A 2.50% 6/18/30 # | 200,000 | 169,039 | ||||||||||
1,269,803 | ||||||||||||
Finance Companies — 2.20% | ||||||||||||
AerCap Ireland Capital DAC 3.00% 10/29/28 | 150,000 | 135,802 | ||||||||||
Air Lease | ||||||||||||
4.625%10/1/28 | 59,000 | 57,454 | ||||||||||
5.10%3/1/29 | 42,000 | 41,755 | ||||||||||
Aroundtown 1.45% 7/9/28 | EUR | 200,000 | 177,895 | |||||||||
Aviation Capital Group 144A 3.50% 11/1/27 # | 125,000 | 116,395 | ||||||||||
529,301 | ||||||||||||
Industrials — 0.83% | ||||||||||||
CK Hutchison International 23 144A 4.875% 4/21/33 # | 200,000 | 198,329 | ||||||||||
198,329 | ||||||||||||
Insurance — 2.52% | ||||||||||||
Allianz 2.625% 10/30/30 µ, y | EUR | 200,000 | 169,994 | |||||||||
Aon North America 5.30% 3/1/31 | 100,000 | 100,818 | ||||||||||
Athene Global Funding 4.76% 4/21/27 | AUD | 500,000 | 309,563 |
26
Principal amount° | Value (US $) | |||||||||||
Corporate Bonds (continued) | ||||||||||||
Insurance (continued) | ||||||||||||
UnitedHealth Group 4.90% 4/15/31 | 25,000 | $ | 25,023 | |||||||||
605,398 | ||||||||||||
Natural Gas — 0.38% | ||||||||||||
Engie 0.50% 10/24/30 | EUR | 100,000 | 90,268 | |||||||||
90,268 | ||||||||||||
Real Estate Investment Trusts — 1.46% | ||||||||||||
American Homes 4 Rent 5.50% 2/1/34 | 65,000 | 64,829 | ||||||||||
Charter Hall LWR Pty 2.086% 3/3/28 | AUD | 500,000 | 284,960 | |||||||||
349,789 | ||||||||||||
Technology — 1.22% | ||||||||||||
Autodesk 2.40% 12/15/31 | 75,000 | 62,846 | ||||||||||
CDW 3.276% 12/1/28 | 110,000 | 100,465 | ||||||||||
Entegris 144A 4.75% 4/15/29 # | 135,000 | 129,527 | ||||||||||
292,838 | ||||||||||||
Transportation — 0.82% | ||||||||||||
Autostrade per l'Italia 2.00% 1/15/30 | EUR | 100,000 | 98,043 | |||||||||
Babcock International Group 1.375% 9/13/27 | EUR | 100,000 | 99,645 | |||||||||
197,688 | ||||||||||||
Total Corporate Bonds | ||||||||||||
(cost $10,009,307) | 9,837,672 | |||||||||||
Government Agency Obligation — 0.92% | ||||||||||||
QazaqGaz JSC 144A 4.375%9/26/27# | 235,000 | 221,613 | ||||||||||
Total Government Agency Obligation | ||||||||||||
(cost $216,670) | 221,613 | |||||||||||
Sovereign Bonds — 34.30%∆ | ||||||||||||
Australia — 1.45% | ||||||||||||
Australia Government Bond 4.75% 6/21/54 | AUD | 500,000 | 348,644 | |||||||||
348,644 | ||||||||||||
Belgium — 0.70% | ||||||||||||
Kingdom of Belgium Government Bond 144A 3.45% 6/22/43 # | EUR | 150,000 | 166,909 | |||||||||
166,909 | ||||||||||||
Bermuda — 0.80% | ||||||||||||
Bermuda Government International Bond 144A 5.00% 7/15/32 # | 200,000 | 192,900 | ||||||||||
192,900 | ||||||||||||
Brazil — 0.32% | ||||||||||||
Brazil Notas do Tesouro Nacional Serie F 10.00% 1/1/33 | BRL | 400,000 | 75,945 | |||||||||
75,945 | ||||||||||||
Chile — 0.80% | ||||||||||||
Chile Government International Bond 4.34% 3/7/42 | 219,000 | 191,565 | ||||||||||
191,565 | ||||||||||||
Dominican Republic — 0.83% | ||||||||||||
Dominican Republic International Bond 6.50% 2/15/48 | 210,000 | 200,222 | ||||||||||
200,222 | ||||||||||||
Finland — 0.04% | ||||||||||||
Finland Government Bond 144A 1.375% 4/15/27 # | EUR | 10,000 | 10,360 | |||||||||
10,360 | ||||||||||||
France — 0.39% | ||||||||||||
French Republic Government Bond OAT 144A 3.50% 11/25/33 # | EUR | 83,000 | 94,756 | |||||||||
94,756 | ||||||||||||
Georgia — 0.78% | ||||||||||||
Georgia Government International Bond 144A 2.75% 4/22/26 # | 200,000 | 186,526 | ||||||||||
186,526 | ||||||||||||
Germany — 5.23% | ||||||||||||
Bundesobligation 1.30% 10/15/27 | EUR | 500,000 | 519,235 | |||||||||
Bundesrepublik Deutschland Bundesanleihe | ||||||||||||
1.80% 8/15/53 | EUR | 110,000 | 102,767 | |||||||||
2.20% 2/15/34 | EUR | 395,000 | 422,719 | |||||||||
2.60% 8/15/33 | EUR | 190,000 | 210,565 | |||||||||
1,255,286 | ||||||||||||
Indonesia — 1.65% | ||||||||||||
Indonesia Government International Bond 1.40% 10/30/31 | EUR | 110,000 | 100,577 |
27
Schedules of investments
Delaware Ivy Total Return Bond Fund
Principal amount° | Value (US $) | |||||||||||
Sovereign BondsΔ (continued) | ||||||||||||
Indonesia (continued) | ||||||||||||
Indonesia Treasury Bond 6.625% 2/15/34 | IDR | 1,510,000,000 | $ | 94,497 | ||||||||
Perusahaan Penerbit SBSN Indonesia III 4.70% 6/6/32 | 204,000 | 200,302 | ||||||||||
395,376 | ||||||||||||
Italy — 4.29% | ||||||||||||
Italy Buoni Poliennali Del Tesoro | ||||||||||||
0.95% 6/1/32 | EUR | 420,000 | 373,878 | |||||||||
144A 2.95% 9/1/38 # | EUR | 320,000 | 309,578 | |||||||||
3.80% 4/15/26 | EUR | 110,000 | 120,028 | |||||||||
4.20% 3/1/34 | EUR | 200,000 | 225,985 | |||||||||
1,029,469 | ||||||||||||
Ivory Coast — 1.46% | ||||||||||||
Ivory Coast Government International Bond 5.875% 10/17/31 | EUR | 350,000 | 349,674 | |||||||||
349,674 | ||||||||||||
Japan — 2.23% | ||||||||||||
Japan Government Thirty Year Bond 0.40% 3/20/50 | JPY | 110,000,000 | 535,483 | |||||||||
535,483 | ||||||||||||
Netherlands — 2.88% | ||||||||||||
Netherlands Government Bonds | ||||||||||||
144A 2.00% 1/15/54 # | EUR | 130,000 | 121,836 | |||||||||
144A 2.50% 7/15/33 # | EUR | 530,000 | 569,342 | |||||||||
691,178 | ||||||||||||
Paraguay — 1.25% | ||||||||||||
Paraguay Government International Bond 144A 4.95%4/28/31# | 312,000 | 300,925 | ||||||||||
300,925 | ||||||||||||
Poland — 1.36% | ||||||||||||
Bank Gospodarstwa Krajowego 144A 5.375% 5/22/33 # | 200,000 | 199,221 | ||||||||||
Republic of Poland Government International Bond 5.50% 4/4/53 | 128,000 | 127,872 | ||||||||||
327,093 | ||||||||||||
Serbia — 0.74% | ||||||||||||
Serbia International Bond 1.00% 9/23/28 | EUR | 193,000 | 177,194 | |||||||||
177,194 | ||||||||||||
Spain — 1.81% | ||||||||||||
Spain Government Bonds | ||||||||||||
144A 1.90% 10/31/52 # | EUR | 180,000 | 133,307 | |||||||||
144A 3.55% 10/31/33 # | EUR | 270,000 | 301,891 | |||||||||
435,198 | ||||||||||||
United Kingdom — 5.07% | ||||||||||||
United Kingdom Gilt | ||||||||||||
1.75% 9/7/37 | GBP | 365,000 | 348,785 | |||||||||
4.50% 6/7/28 | GBP | 490,000 | 632,090 | |||||||||
4.75% 10/22/43 | GBP | 87,000 | 115,152 | |||||||||
0.375% 10/22/30 | GBP | 120,000 | 121,999 | |||||||||
1,218,026 | ||||||||||||
Uruguay — 0.22% | ||||||||||||
Uruguay Government International Bond 9.75% 7/20/33 | UYU | 1,839,000 | 51,547 | |||||||||
51,547 | ||||||||||||
Total Sovereign Bonds | ||||||||||||
(cost $8,283,380) | 8,234,276 | |||||||||||
| ||||||||||||
Supranational Banks — 1.78% | ||||||||||||
Banque Ouest Africaine de Developpement 4.70% 10/22/31 | 200,000 | 172,656 | ||||||||||
European Union 1.00% 7/6/32 | EUR | 270,000 | 254,205 | |||||||||
Total Supranational Banks | ||||||||||||
(cost $475,161) | 426,861 | |||||||||||
| ||||||||||||
US Treasury Obligations — 5.76% | ||||||||||||
US Treasury Bonds | ||||||||||||
3.875%5/15/43 | 2,900 | 2,677 | ||||||||||
4.50%2/15/44 | 325,000 | 326,879 | ||||||||||
4.75%11/15/43 | 1,000 | 1,038 | ||||||||||
US Treasury Notes | ||||||||||||
4.00%1/31/31 | 25,000 | 24,678 | ||||||||||
4.00%2/15/34 | 25,000 | 24,590 | ||||||||||
4.25%3/15/27 | 65,000 | 64,706 | ||||||||||
4.25%2/28/29 | 830,000 | 831,232 | ||||||||||
4.50%11/15/33 | 105,000 | 107,354 | ||||||||||
Total US Treasury Obligations | ||||||||||||
(cost $1,386,890) | 1,383,154 |
28
Number of contracts | Value (US $) | |||||||
Options Purchased — 0.01% | ||||||||
Foreign Currency Put Options — 0.01% | ||||||||
CHF vs JPY, strike price $156, expiration date 6/14/24, notional amount $83,460,000 (JPMCB) | 535,000 | $ | 690 | |||||
USD vs JPY, strike price $139, expiration date 5/14/24, notional amount $87,795,180 (JPMCB) | 631,620 | 364 | ||||||
Total Options Purchased | ||||||||
(cost $25,458) | 1,054 | |||||||
Total Value of Securities Before Options Written—97.76% | ||||||||
(cost $23,774,865) | 23,470,346 | |||||||
| ||||||||
Options Written — (0.00%) | ||||||||
Foreign Currency Put Options — (0.00%) | ||||||||
CHF vs JPY, strike price $152, expiration date 6/14/24, notional amount $(81,320,000) (JPMCB) | (535,000 | ) | (305 | ) | ||||
USD vs JPY, strike price $134, expiration date 5/14/24, notional amount $(84,637,080) (JPMCB) | (631,620 | ) | (130 | ) | ||||
Futures Call Options — 0.00% | ||||||||
US Treasury 10 yr Notes, strike price $117, expiration date 4/26/24, notional amount $(105,300,000) | (9 | ) | 0 | |||||
Total Options Written | ||||||||
(premium received $17,249) | $ | (435 | ) |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
m | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at March 31, 2024. Rate will reset at a future date. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2024, the aggregate value of Rule 144A securities was $4,552,723, which represents 18.96% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
‡ | Non-income producing security. Security is currently in default. |
ψ | Perpetual security. Maturity date represents next call date. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at March 31, 2024. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. SOFR01M, SOFR03M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
∆ | Securities have been classified by country of risk. |
The following forward foreign currency exchange contracts, futures contracts, and swap contracts were outstanding at March 31, 2024:1
Forward Foreign Currency Exchange Contracts
Currency to | Settlement | Unrealized | Unrealized | |||||||||||||||||||||||||
Counterparty | Receive (Deliver) | In Exchange For | Date | Appreciation | Depreciation | |||||||||||||||||||||||
CITI | AUD | (3,070,000 | ) | USD | 2,018,444 | 4/19/24 | $ | 16,620 | $ | — | ||||||||||||||||||
CITI | GBP | (975,000 | ) | USD | 1,237,762 | 4/19/24 | 7,017 | — | ||||||||||||||||||||
CITI | JPY | (83,490,880 | ) | USD | 553,168 | 4/19/24 | — | (217 | ) | |||||||||||||||||||
JPMCB | CZK | 1,144,211 | USD | (49,376 | ) | 4/19/24 | — | (599 | ) | |||||||||||||||||||
JPMCB | EUR | (583,000 | ) | USD | 637,608 | 4/19/24 | 8,086 | — | ||||||||||||||||||||
JPMCB | INR | 10,125,540 | USD | (122,252 | ) | 4/19/24 | — | (893 | ) | |||||||||||||||||||
TD | CAD | 25,000 | USD | (18,498 | ) | 4/19/24 | — | (35 | ) | |||||||||||||||||||
TD | EUR | (5,195,000 | ) | USD | 5,655,407 | 4/19/24 | 45,857 | — | ||||||||||||||||||||
Total Forward Foreign Currency Exchange Contracts | $ | 77,580 | $ | (1,744 | ) |
29
Schedules of investments
Delaware Ivy Total Return Bond Fund
Futures Contracts
Exchange-Traded
Variation | ||||||||||||||||||||||||||
Margin | ||||||||||||||||||||||||||
Notional | Value/ | Value/ | Due from | |||||||||||||||||||||||
Notional | Cost | Expiration | Unrealized | Unrealized | (Due to) | |||||||||||||||||||||
Contracts to Buy (Sell) | Amount | (Proceeds) | Date | Appreciation | Depreciation | Brokers | ||||||||||||||||||||
(5) | 10 yr Gilt | $ | (630,696 | ) | $ | (617,120 | ) | 6/26/24 | $ | — | $ | (13,576 | ) | $ | (1,120 | ) | ||||||||||
26 | Australian 3 yr Treasury Bonds | 1,811,436 | 1,812,342 | 6/17/24 | — | (906 | ) | 1,499 | ||||||||||||||||||
9 | Australian 10 yr Treasury Bonds | 683,700 | 683,033 | 6/17/24 | 667 | — | 2,108 | |||||||||||||||||||
9 | Canadian Treasury 10 yr Bonds | 799,572 | 804,642 | 6/19/24 | — | (5,070 | ) | (142 | ) | |||||||||||||||||
32 | Euro-Bobl | 4,082,368 | 4,070,994 | 6/6/24 | 11,374 | — | — | |||||||||||||||||||
(14) | Euro-BTP | (1,797,515 | ) | (1,770,752 | ) | 6/6/24 | — | (26,763 | ) | 7,070 | ||||||||||||||||
(8) | Euro-Bund | (1,151,176 | ) | (1,142,097 | ) | 6/6/24 | — | (9,079 | ) | (54 | ) | |||||||||||||||
1 | Euro-Buxl | 146,507 | 145,193 | 6/6/24 | 1,314 | — | 190 | |||||||||||||||||||
4 | Euro-OAT | 553,105 | 549,790 | 6/6/24 | 3,315 | — | (662 | ) | ||||||||||||||||||
(9) | Euro-Schatz | (1,026,310 | ) | (1,026,764 | ) | 6/6/24 | 454 | — | 291 | |||||||||||||||||
(1) | Mini 10 yr Japanese Government Bond | (96,254 | ) | (96,232 | ) | 6/12/24 | — | (22 | ) | 7 | ||||||||||||||||
8 | Short-Term Euro-BTP | 913,829 | 912,551 | 6/6/24 | 1,278 | — | (871 | ) | ||||||||||||||||||
12 | US Treasury 2 yr Notes | 2,453,813 | 2,455,716 | 6/28/24 | — | (1,903 | ) | (2,438 | ) | |||||||||||||||||
27 | US Treasury 5 yr Notes | 2,889,422 | 2,880,837 | 6/28/24 | 8,585 | — | (3,164 | ) | ||||||||||||||||||
(30) | US Treasury 10 yr Notes | (3,323,907 | ) | (3,302,073 | ) | 6/18/24 | — | (21,834 | ) | 2,344 | ||||||||||||||||
(28) | US Treasury 10 yr Ultra Notes | (3,209,063 | ) | (3,188,268 | ) | 6/18/24 | — | (20,795 | ) | (438 | ) | |||||||||||||||
1 | US Treasury Long Bonds | 120,438 | 118,066 | 6/18/24 | 2,372 | — | 250 | |||||||||||||||||||
Total Futures Contracts | $ | 3,289,858 | $ | 29,359 | $ | (99,948 | ) | $ | 4,870 |
Swap Contracts
CDS Contracts2
Counterparty/ Reference Obligation/ Termination Date/ Payment Frequency | Notional Amount3 | Annual Protection Payments | Value | Amortized Upfront Payments Paid (Received) | Unrealized Appreciation4 | Unrealized Depreciation4 | ||||||||||||||||||
Over-The-Counter: Protection Purchased/ Moody’s Ratings: | ||||||||||||||||||||||||
JPMCB Republic of Brazil 1.00%6/20/28 Ba2 6/20/28- Quarterly | 347,000 | 1.000 | % | $ | 1,206 | $ | 12,451 | $ | — | $ | (11,245 | ) | ||||||||||||
JPMCB Republic of Indonesia 1.00% 6/20/28 Baa2 6/20/28- Quarterly | 495,000 | 1.000 | % | (7,728 | ) | (2,402 | ) | — | (5,326 | ) | ||||||||||||||
Total CDS Contracts | $ | (6,522 | ) | $ | 10,049 | $ | — | $ | (16,571 | ) |
30
IRS Contracts5 Reference Obligation/ Termination Date/ Payment Frequency (Fixed Rate/ | Notional Amount3 | Fixed/ | Value | Amortized Upfront Payments Paid (Received) | Unrealized Appreciation4 | Unrealized Depreciation4 | Variation Margin | |||||||||||||||||||||
Centrally Cleared: | ||||||||||||||||||||||||||||
1 yr IRS6 6/19/25- | ||||||||||||||||||||||||||||
(Quarterly / | (4.095 | )%/ | ||||||||||||||||||||||||||
Quarterly) | AUD 10,150,000 | 4.344 | % | $ | 2,638 | $ | — | $ | 2,638 | $ | — | $ | 164 | |||||||||||||||
2 yr IRS7 3/15/26- | ||||||||||||||||||||||||||||
(Annually/ | (4.401 | )%/ | ||||||||||||||||||||||||||
Annually) | 950,000 | 5.32 | % | (187 | ) | — | — | (187 | ) | (991 | ) | |||||||||||||||||
10 yr IRS8 | ||||||||||||||||||||||||||||
2//15/33- | ||||||||||||||||||||||||||||
(Annually/ | (2.551 | )%/ | ||||||||||||||||||||||||||
Annually) | EUR 133,000 | 3.906 | % | 1,515 | (19 | ) | 1,534 | — | (85 | ) | ||||||||||||||||||
12 yr IRS9 3/7/36- | ||||||||||||||||||||||||||||
(Annually/ | (3.811 | )%/ | ||||||||||||||||||||||||||
Annually) | GBP 200,000 | 5.19 | % | 4,033 | (69 | ) | 4,102 | — | (58 | ) | ||||||||||||||||||
20 yr IRS7 8/15/43- | ||||||||||||||||||||||||||||
(Annually/ | 3.669 | %/ | ||||||||||||||||||||||||||
Annually) | 282,000 | (5.32 | )% | 5,356 | 22 | 5,334 | — | (42 | ) | |||||||||||||||||||
20 yr IRS9 | ||||||||||||||||||||||||||||
10/22/43- | ||||||||||||||||||||||||||||
(Annually/ | 3.698 | %/ | ||||||||||||||||||||||||||
Annually) | GBP 84,000 | (5.19 | )% | 500 | 385 | 115 | — | 44 | ||||||||||||||||||||
Total IRS Contracts | $ | 13,855 | $ | 319 | $ | 13,723 | $ | (187 | ) | $ | (968 | ) |
The use of forward foreign currency exchange contracts, futures contracts, and swap contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The forward foreign currency exchange contracts and notional amounts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) and variation margin are reflected in the Fund’s net assets.
1 | See Note 7 in “Notes to financial statements.” |
2 | A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the CDS agreement. |
3 | Notional amount shown is stated in USD unless noted that the swap is denominated in another currency. |
4 | Unrealized appreciation (depreciation) does not include periodic interest payments (receipt) on swap contracts accrued daily in the amount of $830. |
5 | An IRS agreement is an exchange of interest rates between counterparties. Periodic payments (receipt) on such contracts are accrued daily and recorded as unrealized appreciation (depreciation) on swap contracts. Upon periodic payment (receipt) or termination of the contract, such amounts are recorded as realized gains (losses) on swap contracts. |
6 | Rates reset based on BBSW3M. |
7 | Rates reset based on SOFR. |
8 | Rates reset based on ESTR. |
9 | Rates reset based on SONIA. |
31
Schedules of investments
Delaware Ivy Total Return Bond Fund
Summary of abbreviations:
BBSW3M – Bank Bill Swap Rate 3 Month
BTP – Buoni del Tesoro Poliennali
CITI – Citigroup
DAC – Designated Activity Company
ESTR – Euro Short-Term Rate
GNMA – Government National Mortgage Association
JPMCB – JPMorgan Chase Bank
JSC – Joint Stock Company
OAT – Obligations Assimilables du Trésor
S.F. – Single Family
SOFR – Secured Overnight Financing Rate
SOFR01M – Secured Overnight Financing Rate 1 Month
SOFR03M – Secured Overnight Financing Rate 3 Month
SONIA – Sterling Overnight Indexed Average
TD – TD Bank
yr – Year
Summary of currencies:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
CZK – Czech Koruna
EUR – European Monetary Unit
GBP – British Pound Sterling
IDR – Indonesian Rupiah
INR – Indian Rupee
JPY – Japanese Yen
USD – US Dollar
UYU – Uruguayan Peso
See accompanying notes, which are an integral part of the financial statements.
32
Statements of assets and liabilities
Ivy Funds
March 31, 2024 (Unaudited)
Delaware Ivy | ||||||||||||||||
Government | Delaware Ivy | Delaware Ivy | Delaware Ivy | |||||||||||||
Securities | High Yield | Multi-Asset | Total Return | |||||||||||||
Fund | Fund | Income Fund | Bond Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value* | $ | 126,978,840 | $ | 27,215,125 | $ | 93,616,070 | $ | 23,470,346 | ||||||||
Foreign currencies, at valueΔ | — | — | 8,002 | 144,371 | ||||||||||||
Cash | 66,146 | — | 98,814 | — | ||||||||||||
Cash collateral due from brokers | 271,893 | — | 6,501 | 288,600 | ||||||||||||
Dividends and interest receivable | 769,680 | 479,676 | 648,504 | 259,238 | ||||||||||||
Receivable for fund shares sold | 204,173 | 69,843 | 58,279 | 28,189 | ||||||||||||
Prepaid expenses | 31,327 | 40,072 | 37,112 | 44,373 | ||||||||||||
Receivable for securities sold | — | 15,403 | 718,069 | 189,924 | ||||||||||||
Foreign tax reclaims receivable | — | — | 185,512 | — | ||||||||||||
Variation margin due from broker on futures contracts | — | — | — | 4,870 | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | — | — | — | 77,580 | ||||||||||||
Upfront payments paid on over-the-counter credit default swap contracts | — | — | — | 10,049 | ||||||||||||
Investment management fees receivable | — | 2,570 | — | 8,680 | ||||||||||||
Other assets | 10,194 | — | — | — | ||||||||||||
Total Assets | 128,332,253 | 27,822,689 | 95,376,863 | 24,526,220 | ||||||||||||
Liabilities: | ||||||||||||||||
Options written, at valueΣ | — | — | — | 435 | ||||||||||||
Due to custodian | — | 497,976 | — | 219,327 | ||||||||||||
Payable for securities purchased | 2,046,103 | 385,331 | 562,177 | 49,055 | ||||||||||||
Payable for fund shares redeemed | 319,029 | 123,499 | 444,725 | 107,938 | ||||||||||||
Other accrued expenses | 107,688 | 32,245 | 44,580 | 86,453 | ||||||||||||
Administration expenses payable to affiliates | 65,096 | 22,840 | 53,499 | 33,795 | ||||||||||||
Investment management fees payable to affiliates | 33,204 | — | 18,149 | — | ||||||||||||
Variation margin due to broker on futures contracts | 17,851 | — | 937 | — | ||||||||||||
Distribution fees payable to affiliates | 9,702 | 1,453 | 12,329 | 1,318 | ||||||||||||
Distribution payable | 638 | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | — | — | — | 1,744 | ||||||||||||
Variation margin due to brokers on centrally cleared interest rate swap contracts | — | — | — | 968 | ||||||||||||
Unrealized depreciation on over-the-counter credit default swap contracts | — | — | — | 16,571 | ||||||||||||
Total Liabilities | 2,599,311 | 1,063,344 | 1,136,396 | 517,604 | ||||||||||||
Total Net Assets | $ | 125,732,942 | $ | 26,759,345 | $ | 94,240,467 | $ | 24,008,616 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in capital | $ | 168,104,123 | $ | 36,631,002 | $ | 107,313,678 | $ | 43,661,472 | ||||||||
Total distributable earnings (loss) | (42,371,181 | ) | (9,871,657 | ) | (13,073,211 | ) | (19,652,856 | ) | ||||||||
Total Net Assets | $ | 125,732,942 | $ | 26,759,345 | $ | 94,240,467 | $ | 24,008,616 |
33
Statements of assets and liabilities
Ivy Funds
Delaware Ivy | ||||||||||||||||
Government | Delaware Ivy | Delaware Ivy | Delaware Ivy | |||||||||||||
Securities | High Yield | Multi-Asset | Total Return | |||||||||||||
Fund | Fund | Income Fund | Bond Fund | |||||||||||||
Net Asset Value | ||||||||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 43,433,870 | $ | 6,630,606 | $ | 43,697,132 | $ | 5,372,750 | ||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 9,157,665 | 774,672 | 4,593,683 | 642,937 | ||||||||||||
Net asset value per share | $ | 4.74 | $ | 8.56 | $ | 9.51 | $ | 8.36 | ||||||||
Sales charge | 4.50 | % | 4.50 | % | 5.75 | % | 4.50 | % | ||||||||
Offering price per share, equal to net asset value per share / (1 - sales charge) | $ | 4.96 | $ | 8.96 | $ | 10.09 | $ | 8.75 | ||||||||
Class C: | ||||||||||||||||
Net assets | $ | 481,449 | $ | — | $ | 3,561,599 | $ | 182,703 | ||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 101,480 | — | 374,000 | 22,130 | ||||||||||||
Net asset value per share | $ | 4.74 | $ | — | $ | 9.52 | $ | 8.26 | ||||||||
Class I: | ||||||||||||||||
Net assets | $ | 49,319,106 | $ | 20,112,631 | $ | 45,753,245 | $ | 18,411,925 | ||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 10,400,133 | 2,348,706 | 4,804,894 | 2,185,296 | ||||||||||||
Net asset value per share | $ | 4.74 | $ | 8.56 | $ | 9.52 | $ | 8.43 | ||||||||
Class R6: | ||||||||||||||||
Net assets | $ | 32,498,517 | $ | 16,108 | $ | 1,164,793 | $ | 41,238 | ||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 6,851,894 | 1,868 | 122,482 | 4,797 | ||||||||||||
Net asset value per share | $ | 4.74 | $ | 8.62 | $ | 9.51 | $ | 8.60 | ||||||||
Class Y: | ||||||||||||||||
Net assets | $ | — | $ | — | $ | 63,698 | $ | — | ||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | — | — | 6,684 | — | ||||||||||||
Net asset value per share | $ | — | $ | — | $ | 9.53 | $ | — | ||||||||
$ | 129,793,406 | $ | 27,866,855 | $ | 93,486,565 | $ | 23,774,865 | |||||||||
∆Foreign currencies, at cost | — | — | 7,783 | 257,251 | ||||||||||||
∑Options written, premium received | — | — | — | (17,249 | ) |
See accompanying notes, which are an integral part of the financial statements.
34
Ivy Funds
Six months ended March 31, 2024 (Unaudited)
Delaware Ivy | ||||||||||||||||
Government | Delaware Ivy | Delaware Ivy | Delaware Ivy | |||||||||||||
Securities | High Yield | Multi-Asset | Total Return | |||||||||||||
Fund | Fund | Income Fund | Bond Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Interest | $ | 2,849,479 | $ | 1,133,636 | $ | 1,631,262 | $ | 590,885 | ||||||||
Dividends | 27,797 | — | 957,107 | 32,478 | ||||||||||||
Foreign tax withheld | — | — | (41,653 | ) | — | |||||||||||
2,877,276 | 1,133,636 | 2,546,716 | 623,363 | |||||||||||||
| ||||||||||||||||
Expenses: | ||||||||||||||||
Management fees | 349,753 | 93,448 | 351,379 | 124,483 | ||||||||||||
Distribution expenses — Class A | 52,503 | 9,391 | 55,552 | 7,048 | ||||||||||||
Distribution expenses — Class C | 3,104 | — | 18,864 | 900 | ||||||||||||
Distribution expenses — Class Y | — | — | 76 | — | ||||||||||||
Dividend disbursing and transfer agent fees and expenses | 72,422 | 17,451 | 67,328 | 17,254 | ||||||||||||
Registration fees | 35,184 | 26,090 | 41,362 | 39,892 | ||||||||||||
Accounting and administration expenses | 30,676 | 17,983 | 27,433 | 19,618 | ||||||||||||
Audit and tax fees | 19,290 | 22,385 | 24,057 | 26,303 | ||||||||||||
Reports and statements to shareholders expenses | 17,317 | 6,952 | 12,964 | 9,646 | ||||||||||||
Legal fees | 5,065 | 1,171 | 7,062 | 4,215 | ||||||||||||
Trustees’ fees and expenses | 4,868 | 759 | 3,016 | 1,408 | ||||||||||||
Custodian fees | 49 | 684 | 20,307 | 16,774 | ||||||||||||
Other | 17,439 | 25,786 | 56,734 | 27,841 | ||||||||||||
607,670 | 222,100 | 686,134 | 295,382 | |||||||||||||
Less expenses waived | (117,676 | ) | (104,985 | ) | (235,212 | ) | (155,727 | ) | ||||||||
Less expenses paid indirectly | (170 | ) | (76 | ) | (213 | ) | (89 | ) | ||||||||
Total operating expenses | 489,824 | 117,039 | 450,709 | 139,566 | ||||||||||||
Net Investment Income (Loss) | 2,387,452 | 1,016,597 | 2,096,007 | 483,797 |
35
Statements of operations
Ivy Funds
Delaware Ivy | ||||||||||||||||
Government | Delaware Ivy | Delaware Ivy | Delaware Ivy | |||||||||||||
Securities | High Yield | Multi-Asset | Total Return | |||||||||||||
Fund | Fund | Income Fund | Bond Fund | |||||||||||||
Net Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | $ | (5,382,137 | ) | $ | (57,357 | ) | $ | (1,189,031 | ) | $ | (1,650,123 | ) | ||||
Foreign currencies | — | — | (13,706 | ) | (414,251 | ) | ||||||||||
Forward foreign currency exchange contracts | — | — | — | 373,474 | ||||||||||||
Futures contracts | (96,266 | ) | — | (2,500 | ) | 179,140 | ||||||||||
Options purchased | — | — | — | 16,989 | ||||||||||||
Options written | 4,948 | — | — | (5,551 | ) | |||||||||||
Swap contracts | — | — | — | 52,320 | ||||||||||||
Net realized gain (loss) | (5,473,455 | ) | (57,357 | ) | (1,205,237 | ) | (1,448,002 | ) | ||||||||
| ||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 10,244,992 | 1,485,355 | 8,648,387 | 3,129,603 | ||||||||||||
Foreign currencies | — | — | 6,501 | (8,322 | ) | |||||||||||
Forward foreign currency exchange contracts | — | — | — | (445,767 | ) | |||||||||||
Futures contracts | 151,385 | — | (2,123 | ) | (168,366 | ) | ||||||||||
Options purchased | — | — | — | (60,035 | ) | |||||||||||
Options written | — | — | — | 16,814 | ||||||||||||
Swap contracts | — | — | — | (8,837 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | 10,396,377 | 1,485,355 | 8,652,765 | 2,455,090 | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 4,922,922 | 1,427,998 | 7,447,528 | 1,007,088 | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 7,310,374 | $ | 2,444,595 | $ | 9,543,535 | $ | 1,490,885 |
See accompanying notes, which are an integral part of the financial statements.
36
Statements of changes in net assets
Ivy Funds
Delaware Ivy | ||||||||||||||||
Government | Delaware Ivy | |||||||||||||||
Securities | High Yield | |||||||||||||||
Fund | Fund | |||||||||||||||
Six months | Six months | |||||||||||||||
ended | ended | |||||||||||||||
3/31/24 | Year ended | 3/31/24 | Year ended | |||||||||||||
(Unaudited) | 9/30/23 | (Unaudited) | 9/30/23 | |||||||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
Net investment income (loss) | $ | 2,387,452 | $ | 4,234,559 | $ | 1,016,597 | $ | 2,406,328 | ||||||||
Net realized gain (loss) | (5,473,455 | ) | (8,305,849 | ) | (57,357 | ) | (3,727,425 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 10,396,377 | 2,081,740 | 1,485,355 | 5,169,700 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 7,310,374 | (1,989,550 | ) | 2,444,595 | 3,848,603 |
| ||||||||||
| ||||||||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||
Distributable earnings: | ||||||||||||||||
Class A | (687,282 | ) | (1,234,530 | ) | (246,307 | ) | (610,522 | ) | ||||||||
Class C | (7,758 | ) | (12,189 | ) | — | — | ||||||||||
Class I | (1,112,473 | ) | (2,341,706 | ) | (773,081 | ) | (1,903,847 | ) | ||||||||
Class R6 | (604,311 | ) | (759,490 | ) | (543 | ) | (1,005 | ) | ||||||||
(2,411,824 | ) | (4,347,915 | ) | (1,019,931 | ) | (2,515,374 | ) | |||||||||
| ||||||||||||||||
Capital Share Transactions (See Note 4): | ||||||||||||||||
Proceeds from shares sold: | ||||||||||||||||
Class A | 7,420,475 | 6,773,632 | 611,503 | 1,872,134 | ||||||||||||
Class C | 109,669 | 238,986 | — | — | ||||||||||||
Class I | 4,439,088 | 26,433,399 | 1,698,799 | 4,490,314 | ||||||||||||
Class R6 | 2,207,029 | 15,477,939 | — | — | ||||||||||||
| ||||||||||||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||
Class A | 683,819 | 1,228,827 | 245,813 | 609,536 | ||||||||||||
Class C | 7,699 | 12,131 | — | — | ||||||||||||
Class I | 1,112,149 | 2,341,374 | 771,936 | 1,901,057 | ||||||||||||
Class R6 | 604,311 | 759,490 | 542 | 1,005 | ||||||||||||
16,584,239 | 53,265,778 | 3,328,593 | 8,874,046 | |||||||||||||
Cost of shares redeemed: | ||||||||||||||||
Class A | (9,057,715 | ) | (18,481,894 | ) | (2,177,592 | ) | (5,173,294 | ) | ||||||||
Class C | (298,965 | ) | (329,909 | ) | — | — | ||||||||||
Class I | (34,402,125 | ) | (51,286,080 | ) | (6,299,395 | ) | (17,470,495 | ) | ||||||||
Class R6 | (4,927,514 | ) | (10,206,225 | ) | — | — | ||||||||||
(48,686,319 | ) | (80,304,108 | ) | (8,476,987 | ) | (22,643,789 | ) | |||||||||
Decrease in net assets derived from capital share transactions | (32,102,080 | ) | (27,038,330 | ) | (5,148,394 | ) | (13,769,743 | ) | ||||||||
Net Decrease in Net Assets | (27,203,530 | ) | (33,375,795 | ) | (3,723,730 | ) | (12,436,514 | ) | ||||||||
| ||||||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 152,936,472 | 186,312,267 | 30,483,075 | 42,919,589 | ||||||||||||
End of period | $ | 125,732,942 | $ | 152,936,472 | $ | 26,759,345 | $ | 30,483,075 |
See accompanying notes, which are an integral part of the financial statements.
37
Statements of changes in net assets
Ivy Funds
Delaware Ivy | Delaware Ivy | |||||||||||||||
Multi-Asset | Total Return | |||||||||||||||
Income Fund | Bond Fund | |||||||||||||||
Six months | Six months | |||||||||||||||
ended | ended | |||||||||||||||
3/31/24 | Year ended | 3/31/24 | Year ended | |||||||||||||
(Unaudited) | 9/30/23 | (Unaudited) | 9/30/23 | |||||||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
Net investment income (loss) | $ | 2,096,007 | $ | 5,116,686 | $ | 483,797 | $ | 1,701,700 | ||||||||
Net realized gain (loss) | (1,205,237 | ) | (12,216,215 | ) | (1,448,002 | ) | (8,798,251 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 8,652,765 | 24,555,102 | 2,455,090 | 10,480,414 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 9,543,535 | 17,455,573 | 1,490,885 | 3,383,863 | ||||||||||||
| ||||||||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||
Distributable earnings: | ||||||||||||||||
Class A | (1,443,838 | ) | (4,929,511 | ) | (102,829 | ) | (624,261 | ) | ||||||||
Class C | (105,757 | ) | (406,153 | ) | (2,528 | ) | (23,924 | ) | ||||||||
Class I | (1,635,702 | ) | (7,828,438 | ) | (374,171 | ) | (2,997,676 | ) | ||||||||
Class R6 | (41,135 | ) | (101,902 | ) | — | (3,045,625 | ) | |||||||||
Class Y | (2,052 | ) | (7,553 | ) | — | — | ||||||||||
(3,228,484 | ) | (13,273,557 | ) | (479,528 | ) | (6,691,486 | ) | |||||||||
| ||||||||||||||||
Capital Share Transactions (See Note 4): | ||||||||||||||||
Proceeds from shares sold: | ||||||||||||||||
Class A | 2,196,343 | 4,227,541 | 459,025 | 1,788,274 | ||||||||||||
Class C | 59,651 | 174,156 | 21,807 | 35,827 | ||||||||||||
Class I | 1,256,652 | 4,457,791 | 1,961,299 | 2,212,071 | ||||||||||||
Class R6 | 267,604 | 110,927 | 7,198 | 2,371,555 | ||||||||||||
| ||||||||||||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||
Class A | 1,443,412 | 4,924,822 | 102,829 | 624,261 | ||||||||||||
Class C | 104,976 | 405,486 | 2,528 | 23,924 | ||||||||||||
Class I | 1,630,413 | 7,813,894 | 374,171 | 2,997,676 | ||||||||||||
Class R6 | 41,135 | 101,902 | — | 3,045,625 | ||||||||||||
Class Y | 2,052 | 7,553 | — | — | ||||||||||||
7,002,238 | 22,224,072 | 2,928,857 | 13,099,213 | |||||||||||||
Cost of shares redeemed: | ||||||||||||||||
Class A | (8,006,871 | ) | (21,938,170 | ) | (1,230,119 | ) | (3,400,674 | ) | ||||||||
Class C | (769,872 | ) | (1,649,817 | ) | (25,505 | ) | (219,477 | ) | ||||||||
Class I | (15,849,453 | ) | (57,003,573 | ) | (4,147,702 | ) | (22,040,860 | ) | ||||||||
Class R6 | (183,150 | ) | (278,505 | ) | (16,447,485 | ) | (21,909,551 | ) | ||||||||
Class Y | — | (40,657 | ) | — | — | |||||||||||
(24,809,346 | ) | (80,910,722 | ) | (21,850,811 | ) | (47,570,562 | ) | |||||||||
Decrease in net assets derived from capital share transactions | (17,807,108 | ) | (58,686,650 | ) | (18,921,954 | ) | (34,471,349 | ) | ||||||||
Net Decrease in Net Assets | (11,492,057 | ) | (54,504,634 | ) | (17,910,597 | ) | (37,778,972 | ) | ||||||||
| ||||||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 105,732,524 | 160,237,158 | 41,919,213 | 79,698,185 | ||||||||||||
End of period | $ | 94,240,467 | $ | 105,732,524 | $ | 24,008,616 | $ | 41,919,213 |
See accompanying notes, which are an integral part of the financial statements.
38
Delaware Ivy Government Securities Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 4.59 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | $ | 5.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.08 | 0.12 | 0.04 | 0.03 | 0.06 | 0.08 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.15 | (0.21 | ) | (0.80 | ) | (0.14 | ) | 0.20 | 0.37 | |||||||||||||||
Total from investment operations | 0.23 | (0.09 | ) | (0.76 | ) | (0.11 | ) | 0.26 | 0.45 | |||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.12 | ) | (0.05 | ) | (0.06 | ) | (0.07 | ) | (0.09 | ) | ||||||||||||
Total dividends and distributions | (0.08 | ) | (0.12 | ) | (0.05 | ) | (0.06 | ) | (0.07 | ) | (0.09 | ) | ||||||||||||
Net asset value, end of period | $ | 4.74 | $ | 4.59 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | ||||||||||||
Total return3 | 4.96 | % | (1.96 | )% | (13.67 | )% | (1.94 | )% | 4.75 | % | 8.59 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 43,434 | $ | 43,011 | $ | 55,336 | $ | 79 | 4 | $ | 96 | 4 | $ | 68 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.89 | % | 0.92 | % | 0.97 | % | 0.97 | % | 0.98 | % | 1.00 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 1.06 | % | 1.01 | % | 1.13 | % | 1.00 | % | 1.05 | % | 1.13 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.22 | % | 2.41 | % | 0.67 | % | 0.59 | % | 1.07 | % | 1.47 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.05 | % | 2.32 | % | 0.51 | % | 0.56 | % | 1.00 | % | 1.34 | % | ||||||||||||
Portfolio turnover | 55 | % | 136 | % | 148 | %6 | 31 | % | 43 | % | 12 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
39
Financial highlights
Delaware Ivy Government Securities Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 4.60 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | $ | 5.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | 0.06 | 0.08 | (0.01 | ) | (0.01 | ) | 0.01 | 0.03 | ||||||||||||||||
Net realized and unrealized gain (loss) | 0.14 | (0.20 | ) | (0.80 | ) | (0.15 | ) | 0.20 | 0.37 | |||||||||||||||
Total from investment operations | 0.20 | (0.12 | ) | (0.81 | ) | (0.16 | ) | 0.21 | 0.40 | |||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.08 | ) | — | 3 | (0.01 | ) | (0.02 | ) | (0.04 | ) | ||||||||||||
Total dividends and distributions | (0.06 | ) | (0.08 | ) | — | 3 | (0.01 | ) | (0.02 | ) | (0.04 | ) | ||||||||||||
Net asset value, end of period | $ | 4.74 | $ | 4.60 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | ||||||||||||
Total return4 | 4.34 | %5 | (2.52 | )%5 | (14.44 | )%5 | (2.75 | )% | 3.83 | %5 | 7.61 | %5 | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 481 | $ | 645 | $ | 754 | $ | 1 | 6 | $ | 2 | 6 | $ | 1 | 6 | |||||||||
Ratio of expenses to average net assets7 | 1.64 | % | 1.70 | % | 1.83 | % | 1.82 | % | 1.86 | % | 1.88 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived7 | 1.81 | % | 1.86 | % | 2.06 | % | 1.82 | % | 1.90 | % | 1.95 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | 2.47 | % | 1.64 | % | (0.19 | )% | (0.26 | )% | 0.18 | % | 0.59 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets prior to fees waived | 2.30 | % | 1.48 | % | (0.42 | )% | (0.26 | )% | 0.14 | % | 0.52 | % | ||||||||||||
Portfolio turnover | 55 | % | 136 | % | 148 | %8 | 31 | % | 43 | % | 12 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Amount is less than $0.005 per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
5 | Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
6 | Net assets reported in millions. |
7 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
8 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
40
Delaware Ivy Government Securities Fund Class I
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 4.59 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | $ | 5.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.08 | 0.13 | 0.05 | 0.05 | 0.08 | 0.09 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.15 | (0.21 | ) | (0.80 | ) | (0.15 | ) | 0.20 | 0.37 | |||||||||||||||
Total from investment operations | 0.23 | (0.08 | ) | (0.75 | ) | (0.10 | ) | 0.28 | 0.46 | |||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.13 | ) | (0.06 | ) | (0.07 | ) | (0.09 | ) | (0.10 | ) | ||||||||||||
Total dividends and distributions | (0.08 | ) | (0.13 | ) | (0.06 | ) | (0.07 | ) | (0.09 | ) | (0.10 | ) | ||||||||||||
Net asset value, end of period | $ | 4.74 | $ | 4.59 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | ||||||||||||
Total return3 | 5.09 | % | (1.71 | )% | (13.45 | )% | (1.69 | )% | 5.01 | % | 8.89 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 49,319 | $ | 75,816 | $ | 101,424 | $ | 130 | 4 | $ | 140 | 4 | $ | 93 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.64 | % | 0.67 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 0.81 | % | 0.68 | % | 0.80 | % | 0.76 | % | 0.77 | % | 0.77 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.47 | % | 2.66 | % | 0.91 | % | 0.84 | % | 1.32 | % | 1.75 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.30 | % | 2.65 | % | 0.83 | % | 0.80 | % | 1.27 | % | 1.70 | % | ||||||||||||
Portfolio turnover | 55 | % | 136 | % | 148 | %6 | 31 | % | 43 | % | 12 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
41
Financial highlights
Delaware Ivy Government Securities Fund Class R6
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 4.59 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | $ | 5.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.08 | 0.13 | 0.05 | 0.05 | 0.08 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.15 | (0.20 | ) | (0.79 | ) | (0.14 | ) | 0.20 | 0.37 | |||||||||||||||
Total from investment operations | 0.23 | (0.07 | ) | (0.74 | ) | (0.09 | ) | 0.28 | 0.47 | |||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.14 | ) | (0.07 | ) | (0.08 | ) | (0.09 | ) | (0.11 | ) | ||||||||||||
Total dividends and distributions | (0.08 | ) | (0.14 | ) | (0.07 | ) | (0.08 | ) | (0.09 | ) | (0.11 | ) | ||||||||||||
Net asset value, end of period | $ | 4.74 | $ | 4.59 | $ | 4.80 | $ | 5.61 | $ | 5.78 | $ | 5.59 | ||||||||||||
Total return3 | 5.13 | %4 | (1.65 | )%4 | (13.36 | )%4 | (1.57 | )% | 5.13 | % | 9.01 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 32,499 | $ | 33,464 | $ | 28,798 | $ | 138 | 5 | $ | 172 | 5 | $ | 120 | 5 | |||||||||
Ratio of expenses to average net assets6 | 0.57 | % | 0.60 | % | 0.62 | % | 0.60 | % | 0.61 | % | 0.61 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived6 | 0.71 | % | 0.66 | % | 0.63 | % | 0.60 | % | 0.61 | % | 0.61 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.54 | % | 2.75 | % | 0.96 | % | 0.96 | % | 1.44 | % | 1.86 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.40 | % | 2.69 | % | 0.95 | % | 0.96 | % | 1.44 | % | 1.86 | % | ||||||||||||
Portfolio turnover | 55 | % | 136 | % | 148 | %7 | 31 | % | 43 | % | 12 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
4 | Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
42
Delaware Ivy High Yield Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.17 | $ | 7.96 | $ | 10.24 | $ | 9.72 | $ | 9.88 | $ | 9.81 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.28 | 0.53 | 0.47 | 0.47 | 0.48 | 0.52 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.39 | 0.24 | (1.98 | ) | 0.54 | (0.16 | ) | 0.06 | ||||||||||||||||
Total from investment operations | 0.67 | 0.77 | (1.51 | ) | 1.01 | 0.32 | 0.58 | |||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.56 | ) | (0.50 | ) | (0.49 | ) | (0.48 | ) | (0.51 | ) | ||||||||||||
Net realized gain | — | — | (0.27 | ) | — | — | — | |||||||||||||||||
Total dividends and distributions | (0.28 | ) | (0.56 | ) | (0.77 | ) | (0.49 | ) | (0.48 | ) | (0.51 | ) | ||||||||||||
Net asset value, end of period | $ | 8.56 | $ | 8.17 | $ | 7.96 | $ | 10.24 | $ | 9.72 | $ | 9.88 | ||||||||||||
Total return3 | 8.32 | % | 9.81 | % | (15.64 | )% | 10.50 | % | 3.40 | % | 6.27 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 6,631 | $ | 7,584 | $ | 9,968 | $ | 14 | 4 | $ | 15 | 4 | $ | 10 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.97 | % | 0.97 | % | 0.99 | % | 0.99 | % | 0.99 | % | 1.00 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 1.67 | % | 1.41 | % | 1.28 | % | 1.13 | % | 1.16 | % | 1.15 | % | ||||||||||||
Ratio of net investment income to average net assets | 6.61 | % | 6.37 | % | 5.05 | % | 4.64 | % | 5.02 | % | 5.32 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 5.91 | % | 5.93 | % | 4.76 | % | 4.50 | % | 4.85 | % | 5.17 | % | ||||||||||||
Portfolio turnover | 16 | % | 42 | % | 47 | % | 83 | % | 80 | % | 69 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
43
Financial highlights
Delaware Ivy High Yield Fund Class I
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.17 | $ | 7.96 | $ | 10.25 | $ | 9.72 | $ | 9.88 | $ | 9.81 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.29 | 0.55 | 0.49 | 0.50 | 0.51 | 0.54 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.39 | 0.24 | (1.98 | ) | 0.54 | (0.17 | ) | 0.07 | ||||||||||||||||
Total from investment operations | 0.68 | 0.79 | (1.49 | ) | 1.04 | 0.34 | 0.61 | |||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.58 | ) | (0.53 | ) | (0.51 | ) | (0.50 | ) | (0.54 | ) | ||||||||||||
Net realized gain | — | — | (0.27 | ) | — | — | — | |||||||||||||||||
Total dividends and distributions | (0.29 | ) | (0.58 | ) | (0.80 | ) | (0.51 | ) | (0.50 | ) | (0.54 | ) | ||||||||||||
Net asset value, end of period | $ | 8.56 | $ | 8.17 | $ | 7.96 | $ | 10.25 | $ | 9.72 | $ | 9.88 | ||||||||||||
Total return3 | 8.51 | % | 10.07 | % | (15.51 | )% | 10.91 | % | 3.68 | % | 6.44 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 20,112 | $ | 22,884 | $ | 32,938 | $ | 85 | 4 | $ | 87 | 4 | $ | 54 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 1.42 | % | 1.13 | % | 1.03 | % | 0.97 | % | 1.01 | % | 1.02 | % | ||||||||||||
Ratio of net investment income to average net assets | 6.86 | % | 6.62 | % | 5.23 | % | 4.90 | % | 5.30 | % | 5.60 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 6.16 | % | 6.21 | % | 4.92 | % | 4.65 | % | 5.01 | % | 5.30 | % | ||||||||||||
Portfolio turnover | 16 | % | 42 | % | 47 | % | 83 | % | 80 | % | 69 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
44
Delaware Ivy High Yield Fund Class R6
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.23 | $ | 8.01 | $ | 10.24 | $ | 9.71 | $ | 9.88 | $ | 9.80 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.29 | 0.56 | 0.49 | 0.50 | 0.51 | 0.54 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.40 | 0.24 | (1.99 | ) | 0.54 | (0.18 | ) | 0.08 | ||||||||||||||||
Total from investment operations | 0.69 | 0.80 | (1.50 | ) | 1.04 | 0.33 | 0.62 | |||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.30 | ) | (0.58 | ) | (0.46 | ) | (0.51 | ) | (0.50 | ) | (0.54 | ) | ||||||||||||
Net realized gain | — | — | (0.27 | ) | — | — | — | |||||||||||||||||
Total dividends and distributions | (0.30 | ) | (0.58 | ) | (0.73 | ) | (0.51 | ) | (0.50 | ) | (0.54 | ) | ||||||||||||
Net asset value, end of period | $ | 8.62 | $ | 8.23 | $ | 8.01 | $ | 10.24 | $ | 9.71 | $ | 9.88 | ||||||||||||
Total return3 | 8.46 | % | 10.15 | % | (15.56 | )% | 10.92 | % | 3.58 | % | 6.55 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 16 | $ | 15 | $ | 14 | $ | 35 | 4 | $ | 40 | 4 | $ | 38 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.69 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 1.32 | % | 1.12 | % | 0.87 | % | 0.80 | % | 0.83 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assets | 6.89 | % | 6.68 | % | 5.20 | % | 4.91 | % | 5.29 | % | 5.59 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 6.26 | % | 6.28 | % | 5.05 | % | 4.83 | % | 5.18 | % | 5.47 | % | ||||||||||||
Portfolio turnover | 16 | % | 42 | % | 47 | % | 83 | % | 80 | % | 69 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
45
Financial highlights
Delaware Ivy Multi-Asset Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months ended 3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.94 | $ | 8.90 | $ | 11.28 | $ | 9.81 | $ | 10.58 | $ | 11.07 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.19 | 0.34 | 0.34 | 0.37 | 0.39 | 0.43 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.69 | 0.60 | (2.18 | ) | 1.53 | (0.61 | ) | (0.13 | ) | |||||||||||||||
Total from investment operations | 0.88 | 0.94 | (1.84 | ) | 1.90 | (0.22 | ) | 0.30 | ||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.28 | ) | (0.54 | ) | (0.43 | ) | (0.42 | ) | (0.45 | ) | ||||||||||||
Net realized gain | — | (0.62 | ) | — | — | (0.13 | ) | (0.34 | ) | |||||||||||||||
Total dividends and distributions | (0.31 | ) | (0.90 | ) | (0.54 | ) | (0.43 | ) | (0.55 | ) | (0.79 | ) | ||||||||||||
Net asset value, end of period | $ | 9.51 | $ | 8.94 | $ | 8.90 | $ | 11.28 | $ | 9.81 | $ | 10.58 | ||||||||||||
Total return3 | 9.94 | % | 10.53 | % | (16.99 | )% | 19.57 | %4 | (2.10 | )% | 3.22 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 43,697 | $ | 45,306 | $ | 56,948 | $ | 87 | 5 | $ | 88 | 5 | $ | 119 | 5 | |||||||||
Ratio of expenses to average net assets6 | 1.00 | % | 1.06 | % | 1.19 | % | 1.17 | % | 1.20 | % | 1.20 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived6 | 1.47 | % | 1.31 | % | 1.36 | % | 1.24 | % | 1.27 | % | 1.24 | % | ||||||||||||
Ratio of net investment income to average net assets | 4.07 | % | 3.59 | % | 3.21 | % | 3.38 | % | 3.89 | % | 4.06 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.60 | % | 3.34 | % | 3.04 | % | 3.31 | % | 3.82 | % | 4.02 | % | ||||||||||||
Portfolio turnover | 28 | % | 51 | % | 127 | %7 | 57 | % | 71 | % | 54 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Payments from affiliates had no impact on net asset value and total return. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
46
Delaware Ivy Multi-Asset Income Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.95 | $ | 8.91 | $ | 11.27 | $ | 9.81 | $ | 10.58 | $ | 11.07 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.15 | 0.27 | 0.26 | 0.29 | 0.32 | 0.35 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.70 | 0.59 | (2.17 | ) | 1.51 | (0.61 | ) | (0.12 | ) | |||||||||||||||
Total from investment operations | 0.85 | 0.86 | (1.91 | ) | 1.80 | (0.29 | ) | 0.23 | ||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.20 | ) | (0.45 | ) | (0.34 | ) | (0.35 | ) | (0.38 | ) | ||||||||||||
Net realized gain | — | (0.62 | ) | — | — | (0.13 | ) | (0.34 | ) | |||||||||||||||
Total dividends and distributions | (0.28 | ) | (0.82 | ) | (0.45 | ) | (0.34 | ) | (0.48 | ) | (0.72 | ) | ||||||||||||
Net asset value, end of period | $ | 9.52 | $ | 8.95 | $ | 8.91 | $ | 11.27 | $ | 9.81 | $ | 10.58 | ||||||||||||
Total return3 | 9.51 | % | 9.65 | % | (17.54 | )% | 18.56 | %4 | (2.85 | )% | 2.46 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 3,561 | $ | 3,927 | $ | 4,909 | $ | 8 | 5 | $ | 10 | 5 | $ | 14 | 5 | |||||||||
Ratio of expenses to average net assets6 | 1.75 | % | 1.82 | % | 1.99 | % | 1.95 | % | 1.96 | % | 1.94 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived6 | 2.22 | % | 2.11 | % | 2.18 | % | 2.02 | % | 2.03 | % | 1.98 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.32 | % | 2.83 | % | 2.40 | % | 2.61 | % | 3.13 | % | 3.31 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 2.85 | % | 2.54 | % | 2.21 | % | 2.54 | % | 3.06 | % | 3.27 | % | ||||||||||||
Portfolio turnover | 28 | % | 51 | % | 127 | %7 | 57 | % | 71 | % | 54 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Payments from affiliates had no impact on net asset value and total return. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
47
Financial highlights
Delaware Ivy Multi-Asset Income Fund Class I
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.95 | $ | 8.90 | $ | 11.28 | $ | 9.81 | $ | 10.59 | $ | 11.07 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.20 | 0.37 | 0.39 | 0.42 | 0.43 | 0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.69 | 0.60 | (2.18 | ) | 1.53 | (0.61 | ) | (0.11 | ) | |||||||||||||||
Total from investment operations | 0.89 | 0.97 | (1.79 | ) | 1.95 | (0.18 | ) | 0.36 | ||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.30 | ) | (0.59 | ) | (0.48 | ) | (0.47 | ) | (0.50 | ) | ||||||||||||
Net realized gain | — | (0.62 | ) | — | — | (0.13 | ) | (0.34 | ) | |||||||||||||||
Total dividends and distributions | (0.32 | ) | (0.92 | ) | (0.59 | ) | (0.48 | ) | (0.60 | ) | (0.84 | ) | ||||||||||||
Net asset value, end of period | $ | 9.52 | $ | 8.95 | $ | 8.90 | $ | 11.28 | $ | 9.81 | $ | 10.59 | ||||||||||||
Total return3 | 10.06 | % | 10.95 | % | (16.64 | )% | 20.08 | %4 | (1.76 | )% | 3.77 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 45,753 | $ | 55,473 | $ | 97,268 | $ | 211 | 5 | $ | 220 | 5 | $ | 320 | 5 | |||||||||
Ratio of expenses to average net assets6 | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived6 | 1.22 | % | 0.98 | % | 1.05 | % | 0.99 | % | 0.99 | % | 0.97 | % | ||||||||||||
Ratio of net investment income to average net assets | 4.32 | % | 3.94 | % | 3.60 | % | 3.81 | % | 4.32 | % | 4.51 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.85 | % | 3.71 | % | 3.30 | % | 3.57 | % | 4.08 | % | 4.29 | % | ||||||||||||
Portfolio turnover | 28 | % | 51 | % | 127 | %7 | 57 | % | 71 | % | 54 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Payments from affiliates had no impact on net asset value and total return. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
48
Delaware Ivy Multi-Asset Income Fund Class R6
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.94 | $ | 8.90 | $ | 11.28 | $ | 9.82 | $ | 10.59 | $ | 11.08 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.21 | 0.37 | 0.39 | 0.43 | 0.44 | 0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.69 | 0.60 | (2.18 | ) | 1.51 | (0.61 | ) | (0.12 | ) | |||||||||||||||
Total from investment operations | 0.90 | 0.97 | (1.79 | ) | 1.94 | (0.17 | ) | 0.35 | ||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.31 | ) | (0.59 | ) | (0.48 | ) | (0.47 | ) | (0.50 | ) | ||||||||||||
Net realized gain | — | (0.62 | ) | — | — | (0.13 | ) | (0.34 | ) | |||||||||||||||
Total dividends and distributions | (0.33 | ) | (0.93 | ) | (0.59 | ) | (0.48 | ) | (0.60 | ) | (0.84 | ) | ||||||||||||
Net asset value, end of period | $ | 9.51 | $ | 8.94 | $ | 8.90 | $ | 11.28 | $ | 9.82 | $ | 10.59 | ||||||||||||
Total return3 | 10.13 | % | 10.91 | % | (16.60 | )% | 19.95 | %4 | (1.66 | )% | 3.69 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 1,165 | $ | 969 | $ | 1,024 | $ | 2 | 5 | $ | 3 | 5 | $ | 4 | 5 | |||||||||
Ratio of expenses to average net assets6 | 0.71 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived6 | 1.11 | % | 0.96 | % | 0.92 | % | 0.84 | % | 0.84 | % | 0.92 | % | ||||||||||||
Ratio of net investment income to average net assets | 4.36 | % | 3.89 | % | 3.66 | % | 3.91 | % | 4.34 | % | 4.50 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.96 | % | 3.68 | % | 3.49 | % | 3.82 | % | 4.25 | % | 4.33 | % | ||||||||||||
Portfolio turnover | 28 | % | 51 | % | 127 | %7 | 57 | % | 71 | % | 54 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Payments from affiliates had no impact on net asset value and total return. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
49
Financial highlights
Delaware Ivy Multi-Asset Income Fund Class Y
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months ended 3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.96 | $ | 8.90 | $ | 11.28 | $ | 9.82 | $ | 10.59 | $ | 11.07 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.19 | 0.34 | 0.34 | 0.39 | 0.40 | 0.42 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.69 | 0.60 | (2.17 | ) | 1.50 | (0.61 | ) | (0.10 | ) | |||||||||||||||
Total from investment operations | 0.88 | 0.94 | (1.83 | ) | 1.89 | (0.21 | ) | 0.32 | ||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.26 | ) | (0.55 | ) | (0.43 | ) | (0.43 | ) | (0.46 | ) | ||||||||||||
Net realized gain | — | (0.62 | ) | — | — | (0.13 | ) | (0.34 | ) | |||||||||||||||
Total dividends and distributions | (0.31 | ) | (0.88 | ) | (0.55 | ) | (0.43 | ) | (0.56 | ) | (0.80 | ) | ||||||||||||
Net asset value, end of period | $ | 9.53 | $ | 8.96 | $ | 8.90 | $ | 11.28 | $ | 9.82 | $ | 10.59 | ||||||||||||
Total return3 | 9.93 | % | 10.60 | % | (16.94 | )% | 19.50 | %4 | (2.06 | )% | 3.33 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 64 | $ | 58 | $ | 88 | $ | — | 5,6 | $ | 3 | 5 | $ | 4 | 5 | |||||||||
Ratio of expenses to average net assets7 | 1.00 | % | 1.06 | % | 1.16 | % | 1.15 | % | 1.15 | % | 1.17 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived7 | 1.47 | % | 1.27 | % | 1.33 | % | 1.22 | % | 1.22 | % | 1.21 | % | ||||||||||||
Ratio of net investment income to average net assets | 4.07 | % | 3.60 | % | 3.23 | % | 3.61 | % | 3.95 | % | 4.06 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 3.60 | % | 3.39 | % | 3.06 | % | 3.54 | % | 3.88 | % | 4.02 | % | ||||||||||||
Portfolio turnover | 28 | % | 51 | % | 127 | %8 | 57 | % | 71 | % | 54 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Payments from affiliates had no impact on net asset value and total return. |
5 | Net assets reported in millions. |
6 | Rounds to less than $500 thousands. |
7 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
8 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
50
Delaware Ivy Total Return Bond Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months ended 3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.98 | $ | 8.49 | $ | 10.16 | $ | 10.22 | $ | 10.22 | $ | 10.02 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.14 | 0.22 | 0.08 | 0.10 | 0.09 | 0.17 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.40 | 0.09 | (1.50 | ) | (0.04 | ) | 0.10 | 0.52 | ||||||||||||||||
Total from investment operations | 0.54 | 0.31 | (1.42 | ) | 0.06 | 0.19 | 0.69 | |||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.82 | ) | (0.09 | ) | (0.02 | ) | (0.16 | ) | (0.49 | ) | ||||||||||||
Net realized gain | — | — | (0.16 | ) | (0.10 | ) | (0.03 | ) | — | |||||||||||||||
Total dividends and distributions | (0.16 | ) | (0.82 | ) | (0.25 | ) | (0.12 | ) | (0.19 | ) | (0.49 | ) | ||||||||||||
Net asset value, end of period | $ | 8.36 | $ | 7.98 | $ | 8.49 | $ | 10.16 | $ | 10.22 | $ | 10.22 | ||||||||||||
Total return3 | 6.76 | % | 3.56 | % | (14.25 | )% | 0.77 | % | 2.07 | % | 7.23 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 5,373 | $ | 5,782 | $ | 7,125 | $ | 13 | 4 | $ | 23 | 4 | $ | 23 | 4 | |||||||||
Ratio of expenses to average net assets5 | 1.21 | %6 | 1.21 | % | 1.33 | % | 1.24 | % | 1.22 | % | 1.22 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 2.38 | % | 2.31 | % | 1.59 | % | 1.42 | % | 1.41 | % | 1.40 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.33 | % | 2.62 | % | 0.81 | % | 0.95 | % | 0.90 | % | 1.74 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 2.16 | % | 1.52 | % | 0.55 | % | 0.77 | % | 0.71 | % | 1.56 | % | ||||||||||||
Portfolio turnover | 104 | % | 127 | % | 105 | % | 119 | % | 112 | % | 121 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The ratio of interest expense to average net assets was 0.01%. |
See accompanying notes, which are an integral part of the financial statements.
51
Financial highlights
Delaware Ivy Total Return Bond Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.88 | $ | 8.33 | $ | 10.03 | $ | 10.10 | $ | 10.10 | $ | 9.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.10 | 0.15 | — | 3 | 0.02 | 0.02 | 0.10 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.40 | 0.11 | (1.47 | ) | (0.03 | ) | 0.10 | 0.51 | ||||||||||||||||
Total from investment operations | 0.50 | 0.26 | (1.47 | ) | (0.01 | ) | 0.12 | 0.61 | ||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.71 | ) | (0.07 | ) | (0.01 | ) | (0.10 | ) | (0.42 | ) | ||||||||||||
Net realized gain | — | — | (0.16 | ) | (0.05 | ) | (0.02 | ) | — | |||||||||||||||
Total dividends and distributions | (0.12 | ) | (0.71 | ) | (0.23 | ) | (0.06 | ) | (0.12 | ) | (0.42 | ) | ||||||||||||
Net asset value, end of period | $ | 8.26 | $ | 7.88 | $ | 8.33 | $ | 10.03 | $ | 10.10 | $ | 10.10 | ||||||||||||
Total return4 | 6.30 | % | 2.93 | % | (14.92 | )% | (0.17 | )% | 1.32 | % | 6.45 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 183 | $ | 175 | $ | 348 | $ | 1 | 5 | $ | 5 | 5 | $ | 4 | 5 | |||||||||
Ratio of expenses to average net assets6 | 1.96 | %7 | 1.95 | % | 2.08 | % | 1.95 | % | 1.92 | % | 1.92 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived6 | 3.13 | % | 3.15 | % | 2.58 | % | 2.13 | % | 2.11 | % | 2.10 | % | ||||||||||||
Ratio of net investment income to average net assets | 2.58 | % | 1.83 | % | 0.05 | % | 0.22 | % | 0.20 | % | 1.05 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets prior to fees waived | 1.41 | % | 0.63 | % | (0.45 | )% | 0.04 | % | 0.01 | % | 0.87 | % | ||||||||||||
Portfolio turnover | 104 | % | 127 | % | 105 | % | 119 | % | 112 | % | 121 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Amount is less than $0.005 per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The ratio of interest expense to average net assets was 0.01%. |
See accompanying notes, which are an integral part of the financial statements.
52
Delaware Ivy Total Return Bond Fund Class I
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months ended 3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.05 | $ | 8.54 | $ | 10.20 | $ | 10.25 | $ | 10.26 | $ | 10.06 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.15 | 0.23 | 0.10 | 0.12 | 0.11 | 0.20 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.40 | 0.11 | (1.50 | ) | (0.02 | ) | 0.09 | 0.51 | ||||||||||||||||
Total from investment operations | 0.55 | 0.34 | (1.40 | ) | 0.10 | 0.20 | 0.71 | |||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.83 | ) | (0.10 | ) | (0.03 | ) | (0.18 | ) | (0.51 | ) | ||||||||||||
Net realized gain | — | — | (0.16 | ) | (0.12 | ) | (0.03 | ) | — | |||||||||||||||
Total dividends and distributions | (0.17 | ) | (0.83 | ) | (0.26 | ) | (0.15 | ) | (0.21 | ) | (0.51 | ) | ||||||||||||
Net asset value, end of period | $ | 8.43 | $ | 8.05 | $ | 8.54 | $ | 10.20 | $ | 10.25 | $ | 10.26 | ||||||||||||
Total return3 | 6.88 | % | 3.93 | % | (14.03 | )% | 0.96 | % | 2.19 | % | 7.45 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 18,412 | $ | 19,323 | $ | 37,651 | $ | 99 | 4 | $ | 102 | 4 | $ | 120 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.96 | %6 | 0.97 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 2.13 | % | 1.91 | % | 1.27 | % | 1.23 | % | 1.24 | % | 1.23 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.58 | % | 2.81 | % | 1.10 | % | 1.20 | % | 1.12 | % | 1.98 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 2.41 | % | 1.87 | % | 0.83 | % | 0.98 | % | 0.88 | % | 1.75 | % | ||||||||||||
Portfolio turnover | 104 | % | 127 | % | 105 | % | 119 | % | 112 | % | 121 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The ratio of interest expense to average net assets was 0.01%. |
See accompanying notes, which are an integral part of the financial statements.
53
Financial highlights
Delaware Ivy Total Return Bond Fund Class R6
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
3/31/241 | Year ended | |||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.04 | $ | 8.57 | $ | 10.23 | $ | 10.28 | $ | 10.28 | $ | 10.08 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.16 | 0.24 | 0.12 | 0.14 | 0.13 | 0.21 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.40 | 0.11 | (1.51 | ) | (0.03 | ) | 0.09 | 0.51 | ||||||||||||||||
Total from investment operations | 0.56 | 0.35 | (1.39 | ) | 0.11 | 0.22 | 0.72 | |||||||||||||||||
Less dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.88 | ) | (0.11 | ) | (0.03 | ) | (0.19 | ) | (0.52 | ) | |||||||||||||
Net realized gain | — | — | (0.16 | ) | (0.13 | ) | (0.03 | ) | — | |||||||||||||||
Total dividends and distributions | — | (0.88 | ) | (0.27 | ) | (0.16 | ) | (0.22 | ) | (0.52 | ) | |||||||||||||
Net asset value, end of period | $ | 8.60 | $ | 8.04 | $ | 8.57 | $ | 10.23 | $ | 10.28 | $ | 10.28 | ||||||||||||
Total return3 | 6.97 | % | 3.94 | % | (13.95 | )% | 1.08 | % | 2.41 | % | 7.57 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 41 | $ | 16,639 | $ | 34,574 | $ | 60 | 4 | $ | 56 | 4 | $ | 70 | 4 | |||||||||
Ratio of expenses to average net assets5 | 0.89 | %6 | 0.87 | % | 0.87 | % | 0.87 | % | 0.87 | % | 0.87 | % | ||||||||||||
Ratio of expenses to average net assets prior to fees waived5 | 1.58 | % | 1.78 | % | 1.13 | % | 1.06 | % | 1.07 | % | 1.06 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.65 | % | 2.88 | % | 1.26 | % | 1.33 | % | 1.24 | % | 2.11 | % | ||||||||||||
Ratio of net investment income to average net assets prior to fees waived | 2.96 | % | 1.97 | % | 1.00 | % | 1.14 | % | 1.04 | % | 1.92 | % | ||||||||||||
Portfolio turnover | 104 | % | 127 | % | 105 | % | 119 | % | 112 | % | 121 | % |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The ratio of interest expense to average net assets was 0.02%. |
See accompanying notes, which are an integral part of the financial statements.
54
Ivy Funds
March 31, 2024 (Unaudited)
Ivy Funds (Trust) is organized as a Delaware statutory trust and offers 30 funds. These financial statements and the related notes pertain to 4 funds: Delaware Ivy Government Securities Fund, Delaware Ivy High Yield Fund, Delaware Ivy Multi-Asset Income Fund, and Delaware Ivy Total Return Bond Fund, (each, a Fund or collectively, the Funds). The Trust is an open-end investment company. Each Fund is considered diversified under the Investment Company Act of 1940, as amended (1940 Act).
Each Fund offers Class A , Class I and Class R6 shares.. Each Fund (other than Delaware Ivy High Yield Fund) offers Class C shares, and Delaware Ivy Multi-Asset Income Fund offers Class Y shares. Class A shares are subject to an initial sales charge. There is no front-end sales charge when you purchase $1 million or more of Class A shares. However, if Delaware Distributors, L.P. (DDLP) paid your financial intermediary a commission on your purchase of $1 million or more of Class A shares, you will have to pay a limited contingent deferred sales charge (Limited CDSC) of 1.00% if you redeem these shares within the first 18 months after your purchase, unless a specific waiver of the Limited CDSC applies. Class C shares have no upfront sales charge, but are sold with a contingent deferred sales charge (CDSC) of 1.00%, which will be incurred if redeemed during the first 12 months. Class I, Class R6 and Class Y shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services — Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation — Equity securities and exchange-traded funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security or ETF does not trade, the mean between the bid and the ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. US government and agency securities are valued at the mean between the bid and the ask prices, which approximates fair value. Open-end investment companies, other than ETFs, are valued at their published net asset value (NAV). Fixed income securities, credit default swap (CDS) contracts, interest rate swap (IRS) contracts, CDS and IRS options contracts (swaptions) are generally priced based upon valuations provided by an independent pricing service or broker/counterparty in accordance with methodologies included within Delaware Management Company (DMC)’s Pricing Policy (the Policy). Fixed income security valuations, CDS contracts and IRS contracts are then reviewed by DMC as part of its duties as each Fund’s valuation designee and, to the extent required by the Policy and applicable regulation, fair valued consistent with the Policy. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. For asset-backed securities, collateralized mortgage obligations (CMOs), commercial mortgage securities, and US government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as broker/dealer-supplied prices. Swap prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades, and values of the underlying reference instruments. Forward foreign currency exchange contracts are valued at the mean between the bid and the ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by DMC. Subject to the oversight of the Trust’s Board of Trustees (Board), DMC, as valuation designee, has adopted policies and procedures to fair value securities for which market quotations are not readily available consistent with the requirements of Rule 2a-5 under the 1940 Act. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Certain Funds may use fair value pricing more frequently for securities traded primarily in non-US markets because, among other things, most foreign markets close well before the Funds value their securities, generally as of 4:00pm ET. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. Whenever such a significant event occurs, the Funds
55
Notes to financial statements
Ivy Funds
1. Significant Accounting Policies (continued)
may value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing). Restricted securities and private placements are valued at fair value.
Federal and Foreign Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the six months ended March 31, 2024, and for all open tax years (years ended September 30, 2020–September 30, 2023), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. In regard to foreign taxes only, each Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of each Fund. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the six months ended March 31, 2024, the Funds did not incur any interest or tax penalties.
Class Accounting — Investment income, common expenses, and realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class. Class R6 shares will not be allocated any expenses related to service fees, sub-accounting fees, and/or sub-transfer agency fees paid to brokers, dealers, or other financial intermediaries.
Underlying Funds — Each Fund may invest in other investment companies (Underlying Funds) to the extent permitted by the 1940 Act. The Underlying Funds in which each Fund may invest include ETFs. Each Fund will indirectly bear the investment management fees and other expenses of the Underlying Funds.
Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The value of all assets and liabilities denominated in foreign currencies is translated daily into US dollars at the exchange rate of such currencies against the US dollar. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Funds generally bifurcate that portion of realized gains and losses on investments in debt securities which is due to changes in foreign exchange rates from that which is due to changes in market prices of debt securities. That portion of realized gains (losses), attributable to changes in foreign exchange rates, is included on the “Statements of operations” under “Net realized gain (loss) on foreign currencies.” For foreign equity securities, the realized gains and losses are included on the “Statements of operations” under “Net realized gain (loss) on investments.” The Funds report certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.
Derivative Financial Instruments — The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds intend to use either derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk.
Segregation and Collateralization — In certain cases, based on requirements and agreements with certain exchanges and third-party broker-dealers, the Funds may deliver or receive collateral in connection with certain investments (e.g., futures contracts, forward foreign currency exchange contracts, options written, securities with extended settlement periods, and swaps). Certain countries require that cash reserves be held while investing in companies incorporated in that country. Cash collateral that has been pledged/received to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the “Statements of assets and liabilities” as cash collateral due to/from broker. Securities collateral pledged for the same purpose, if any, is noted on the “Schedules of investments.”
56
Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds by Macquarie® (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Income and capital gain distributions from any Underlying Funds, in which each Fund invests are recorded on the ex-dividend date. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. When a loan agreement is purchased, the Funds may pay an assignment fee. On an ongoing basis, the Funds may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by the borrower. Prepayment penalty, facility, commitment, consent, and amendment fees are recorded to income as earned or paid. Distributions received from investments in real estate investment trusts (REITs) are recorded as dividend income on the ex-dividend date, which are estimated, subject to reclassification upon notice of the character of such distributions by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Funds are aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends and interest have been recorded in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Certain Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Each Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The “Statements of operations” include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes. Each Fund may pay foreign capital gains taxes on certain foreign securities held, which are reported as components of realized losses for financial reporting purposes, whereas such components are treated as ordinary loss for federal income tax purposes. Delaware Ivy Government Securities Fund declares dividends daily and pays monthly. Delaware Ivy High Yield Fund declares and pays dividends monthly. Delaware Ivy Multi-Asset Fund and Delaware Ivy Total Return Bond Fund declare and pay dividends quarterly. Each Fund declares and pays distributions from net realized gain on investments, if any, at least annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.”
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays DMC, a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
Fund | Management Fee (annual rate as a percentage of average daily net assets) | |
Delaware Ivy Government Securities Fund | 0.50% of net assets up to $500 million; | |
0.45% of net assets over $500 million and up to $1 billion; | ||
0.40% of net assets over $1 billion and up to $1.5 billion; | ||
0.35% of net assets over $1.5 billion. |
57
Notes to financial statements
Ivy Funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Fund | Management Fee (annual rate as a percentage of average daily net assets) | |
Delaware Ivy High Yield Fund | 0.625% of net assets up to $500 million; | |
0.60% of net assets over $500 million and up to $1 billion; | ||
0.55% of net assets over $1 billion and up to $1.5 billion; | ||
0.50% of net assets over $1.5 billion and up to $10 billion; | ||
0.49% of net assets over $10 billion and up to $20 billion; | ||
0.48% of net assets over $20 billion. | ||
Delaware Ivy Multi-Asset Income Fund | 0.70% of net assets up to $1 billion; | |
0.65% of net assets over $1 billion and up to $2 billion; | ||
0.61% of net assets over $2 billion and up to $3 billion; | ||
0.58% of net assets over $3 billion. | ||
Delaware Ivy Total Return Bond Fund | 0.90% of net assets up to $1 billion; | |
0.85% of net assets over $1 billion and up to $2 billion; | ||
0.80% of net assets over $2 billion and up to $5 billion; | ||
0.75% of net assets over $5 billion. |
DMC may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Austria Kapitalanlage AG (MIMAK), Macquarie Investment Management Europe Limited, and Macquarie Investment Management Global Limited (together, the Affiliated Sub-Advisors). DMC may also permit these Affiliated Sub-Advisors to execute Fund security trades on behalf of DMC 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. In addition and with respect only to Delaware Ivy Multi-Asset Income Fund, MIMAK is responsible for the day-to-day management of the Fund. Pursuant to the terms of the relevant sub-advisory agreement, DMC pays each Affiliated Sub-Advisor a sub-advisory fee.
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.0050% of the first $60 billion; 0.00475% of the next $30 billion; and 0.0015% of aggregate average daily net assets in excess of $90 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative NAV basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the six months ended March 31, 2024, each Fund paid for these services as follows:
Fund | Fees | |||
Delaware Ivy Government Securities Fund | $ | 4,935 | ||
Delaware Ivy High Yield Fund | 2,630 | |||
Delaware Ivy Multi-Asset Income Fund | 4,111 | |||
Delaware Ivy Total Return Bond Fund | 2,568 |
DIFSC is also the transfer agent and dividend disbursing agent of each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; 0.004% of the next $20 billion; 0.002% of the next $25 billion; and 0.0015% of average daily net assets in excess of $75 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended March 31, 2024, each Fund paid for these services as follows:
Fund | Fees | |||
Delaware Ivy Government Securities Fund | $ | 4,623 | ||
Delaware Ivy High Yield Fund | 987 | |||
Delaware Ivy Multi-Asset Income Fund | 3,314 |
58
Fund | Fees | |||
Delaware Ivy Total Return Bond Fund | $ | 916 |
Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to each Fund. Sub-transfer agency fees are paid by each Fund and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees are calculated daily and paid as invoices on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service (12b-1) fee of 0.25%, 1.00%, and 0.25% of the average daily net assets of the Class A, Class C, and Class Y shares, respectively. The fees are calculated daily and paid monthly. Class I and Class R6 shares do not pay 12b-1 fees.
DMC has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, 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 the following percentages of each Fund’s average daily net assets from October 1, 2023 (except as noted) through January 28, 2025. These waivers and reimbursements may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
Fund | Operating expense limitation as a percentage of average daily net assets all share classes other than Class R6 | Operating expense limitation as a percentage of average daily net assets Class R6 | ||||||
Delaware Ivy Government Securities Fund | 0.63 | %* | 0.51 | %* | ||||
Delaware Ivy High Yield Fund | 0.72 | % | 0.62 | %** | ||||
Delaware Ivy Multi-Asset Income Fund | 0.75 | % | 0.63 | %*** | ||||
Delaware Ivy Total Return Bond Fund | 0.95 | % | 0.72 | %**** |
* | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Government Securities Fund was 0.64% for all share classes other than Class R6 and 0.60% for Class R6 shares. |
** | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy High Yield Fund was 0.72% for Class R6 shares. |
*** | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy Multi-Asset Income Fund was 0.75% for Class R6 shares. |
**** | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy Total Return Bond Fund was 0.87% for Class R6 shares. |
After consideration of class specific expenses, including 12b-1 fees, the class level operating expense limitation as a percentage of average daily net assets from October 1, 2023 (except as noted) through January 28, 2025, unless terminated by agreement of DMC and the Fund, is as follows:
Operating expense limitation as a percentage of average daily net assets | ||||||||||||||||||||
Fund | Class A | Class C | Class I | Class R6 | Class Y | |||||||||||||||
Delaware Ivy Government Securities Fund | 0.88 | %* | 1.63 | %* | 0.63 | %* | 0.51 | %* | n/a | |||||||||||
Delaware Ivy High Yield Fund | 0.97 | % | n/a | 0.72 | % | 0.62 | %** | n/a | ||||||||||||
Delaware Ivy Multi-Asset Income Fund | 1.00 | % | 1.75 | % | 0.75 | % | 0.63 | %*** | 1.00 | % | ||||||||||
Delaware Ivy Total Return Bond Fund | 1.20 | % | 1.95 | % | 0.95 | % | 0.72 | %**** | n/a |
59
Notes to financial statements
Ivy Funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
* | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy Government Securities Fund were as follows for Class A, Class C, Class I, and Class R6 shares, respectively: 0.89%, 1.64%, 0.64% and 0.60%. |
** | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy High Yield Fund was 0.72% for Class R6 shares. |
*** | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy Multi-Asset Income Fund was 0.75% for Class R6 shares. |
**** | Effective January 29, 2024. Prior to January 29, 2024, the expense limitation for Delaware Ivy Total Return Bond Fund was 0.87% for Class R6 shares. |
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended March 31, 2024, each Fund paid for internal legal and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
Fund | Fees | |||
Delaware Ivy Government Securities Fund | $ | 1,792 | ||
Delaware Ivy High Yield Fund | 423 | |||
Delaware Ivy Multi-Asset Income Fund | 4,986 | |||
Delaware Ivy Total Return Bond Fund | 2,652 |
For the six months ended March 31, 2024, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Fund | Class A | |||
Delaware Ivy Government Securities Fund | $ | 910 | ||
Delaware Ivy High Yield Fund | 280 | |||
Delaware Ivy Multi-Asset Income Fund | 1,933 | |||
Delaware Ivy Total Return Bond Fund | 176 |
For the six months ended March 31, 2024, DDLP received gross CDSC commissions on redemptions of certain Funds' Class A and Class C shares and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
Fund | Class A | Class C | ||||||
Delaware Ivy Government Securities Fund | $ | — | $ | 12 | ||||
Delaware Ivy Multi-Asset Income Fund | 94 | 15 | ||||||
Delaware Ivy Total Return Bond Fund | — | 13 |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
In addition to the management fees and other expenses of a Fund, a Fund indirectly bears the investment management fees and other expenses of any Underlying Funds, including ETFs, in which it invests. The amount of these fees and expenses incurred indirectly by a Fund will vary based upon the expense and fee levels of any Underlying Funds and the number of shares that are owned of any Underlying Funds at different times.
60
3. Investments
For the six months ended March 31, 2024, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Fund | Purchases other than US government securities | Purchases of US government securities | Sales other than US government securities | Sales of US government securities | ||||||||||||
Delaware Ivy Government Securities Fund | $ | — | $ | 75,765,250 | $ | — | $ | 108,382,333 | ||||||||
Delaware Ivy High Yield Fund | 4,635,823 | — | 8,162,404 | — | ||||||||||||
Delaware Ivy Multi-Asset Income Fund | 21,951,577 | 5,393,154 | 41,858,620 | 4,999,392 | ||||||||||||
Delaware Ivy Total Return Bond Fund | 20,949,199 | 5,378,316 | 35,702,741 | 7,353,757 |
At March 31, 2024, the cost and unrealized appreciation (depreciation) of investments and derivatives for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At March 31, 2024, the cost and unrealized appreciation (depreciation) of investments and derivatives for each Fund were as follows:
Fund | Cost of investments and derivatives | Aggregate unrealized appreciation of investments and derivatives | Aggregate unrealized depreciation of investments and derivatives | Net unrealized appreciation (depreciation) of investments and derivatives | ||||||||||||
Delaware Ivy Government Securities Fund | $ | 129,793,406 | $ | 701,354 | $ | (3,481,666 | ) | $ | (2,780,312 | ) | ||||||
Delaware Ivy High Yield Fund | 27,866,855 | 651,334 | (1,303,064 | ) | (651,730 | ) | ||||||||||
Delaware Ivy Multi-Asset Income Fund | 93,486,565 | 9,049,731 | (8,921,849 | ) | 127,882 | |||||||||||
Delaware Ivy Total Return Bond Fund | 23,757,616 | 546,908 | (832,401 | ) | (285,493 | ) |
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. At September 30, 2023, the Funds had capital loss carryforwards available to offset future realized capital gains as follows:
Loss carryforward character | ||||||||||||
Short-term | Long-term | Total | ||||||||||
Delaware Ivy Government Securities Fund | $ | 17,781,615 | $ | 16,252,701 | $ | 34,034,316 | ||||||
Delaware Ivy High Yield Fund | 3,516,154 | 5,545,763 | 9,061,917 | |||||||||
Delaware Ivy Multi-Asset Income Fund | 6,252,038 | 6,008,392 | 12,260,430 | |||||||||
Delaware Ivy Total Return Bond Fund | 6,174,366 | 7,957,078 | 14,131,444 |
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for |
61
Notes to financial statements
Ivy Funds
3. Investments (continued)
the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, forward foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) |
Level 3 – | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of March 31, 2024:
Delaware Ivy Government Securities Fund | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Securities | ||||||||||||
Assets: | ||||||||||||
Agency Collateralized Mortgage Obligations | $ | — | $ | 2,330,773 | $ | 2,330,773 | ||||||
Agency Commercial Mortgage-Backed Securities | — | 3,264,344 | 3,264,344 | |||||||||
Agency Mortgage-Backed Securities | — | 55,789,853 | 55,789,853 | |||||||||
Agency Obligations | — | 1,939,846 | 1,939,846 | |||||||||
US Treasury Obligations | — | 60,317,936 | 60,317,936 | |||||||||
Short-Term Investments | 3,336,088 | — | 3,336,088 | |||||||||
Total Value of Securities | $ | 3,336,088 | $ | 123,642,752 | $ | 126,978,840 | ||||||
Derivatives1 | ||||||||||||
Assets: | ||||||||||||
Futures Contracts | $ | 39,247 | $ | — | $ | 39,247 | ||||||
Liabilities: | ||||||||||||
Futures Contracts | $ | (4,993 | ) | $ | — | $ | (4,993 | ) |
1Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument at the period end.
Delaware Ivy High Yield Fund | ||||
Level 2 | ||||
Securities | ||||
Assets: | ||||
Corporate Bonds | $ | 27,215,125 |
62
Delaware Ivy Multi-Asset Income Fund | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Securities | ||||||||||||||||
Assets: | ||||||||||||||||
Agency Mortgage-Backed Securities | $ | — | $ | 3,483,150 | $ | — | $ | 3,483,150 | ||||||||
Common Stocks | ||||||||||||||||
Basic Industry | — | — | 577,396 | 577,396 | ||||||||||||
Capital Goods | 461,407 | — | — | 461,407 | ||||||||||||
Consumer Cyclical | — | — | 62,738 | 62,738 | ||||||||||||
Consumer Discretionary | 4,024,644 | — | — | 4,024,644 | ||||||||||||
Consumer Non-Cyclical | 7,137,990 | — | — | 7,137,990 | ||||||||||||
Consumer Staples | 5,814,438 | — | — | 5,814,438 | ||||||||||||
Energy | 3,369,044 | — | — | 3,369,044 | ||||||||||||
Financial Services | 719,189 | — | 324,442 | 1,043,631 | ||||||||||||
Healthcare | 746,585 | 529,513 | — | 1,276,098 | ||||||||||||
Home Builders | 79,679 | — | — | 79,679 | ||||||||||||
Industrials | 5,235,186 | 234,079 | — | 5,469,265 | ||||||||||||
Integrated Telecommunication Services | 8,815 | — | — | 8,815 | ||||||||||||
Materials | 4,664,853 | — | — | 4,664,853 | ||||||||||||
Real Estate | 972,966 | — | — | 972,966 | ||||||||||||
Real Estate Operating Companies/Developer | 509,013 | — | — | 509,013 | ||||||||||||
REIT Diversified | 1,007,221 | — | — | 1,007,221 | ||||||||||||
REIT Healthcare | 418,619 | — | — | 418,619 | ||||||||||||
REIT Industrial | 1,438,179 | — | — | 1,438,179 | ||||||||||||
REIT Information Technology | 1,244,941 | — | — | 1,244,941 | ||||||||||||
REIT Lodging | 243,646 | — | — | 243,646 | ||||||||||||
REIT Mall | 200,307 | — | — | 200,307 | ||||||||||||
REIT Manufactured Housing | 437,434 | — | — | 437,434 | ||||||||||||
REIT Multifamily | 1,393,114 | — | — | 1,393,114 | ||||||||||||
REIT Office | 350,695 | — | — | 350,695 | ||||||||||||
REIT Retail | 261,511 | — | — | 261,511 | ||||||||||||
REIT Self-Storage | 487,670 | — | — | 487,670 | ||||||||||||
REIT Shopping Center | 769,071 | — | — | 769,071 | ||||||||||||
REIT Single Tenant | 364,093 | — | — | 364,093 | ||||||||||||
REIT Specialty | 471,525 | — | — | 471,525 | ||||||||||||
Technology | 1,742,009 | — | — | 1,742,009 | ||||||||||||
Utilities | 4,606,470 | 429,876 | — | 5,036,346 | ||||||||||||
Convertible Bond | — | — | 952,618 | 952,618 | ||||||||||||
Corporate Bonds | — | 28,464,357 | — | 28,464,357 | ||||||||||||
Exchange-Traded Funds | 5,457,487 | — | — | 5,457,487 | ||||||||||||
Loan Agreements | — | 428,749 | — | 428,749 | ||||||||||||
Master Limited Partnerships | 285,595 | — | — | 285,595 | ||||||||||||
Non-Agency Commercial Mortgage-Backed Securities | — | 879,887 | — | 879,887 | ||||||||||||
Preferred Stocks | 711,232 | — | 10,280 | 721,512 | ||||||||||||
US Treasury Obligations | — | 1,057,386 | — | 1,057,386 | ||||||||||||
Warrants | 22,827 | — | — | 22,827 |
63
Notes to financial statements
Ivy Funds
3. Investments (continued)
Delaware Ivy Multi-Asset Income Fund | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Short-Term Investments | $ | 524,144 | $ | — | $ | — | $ | 524,144 | ||||||||
Total Value of Securities | $ | 56,181,599 | $ | 35,506,997 | $ | 1,927,474 | $ | 93,616,070 | ||||||||
Derivatives1 | ||||||||||||||||
Assets: | ||||||||||||||||
Futures Contracts | $ | 783 | $ | — | $ | — | $ | 783 | ||||||||
Liabilities: | ||||||||||||||||
Futures Contracts | $ | (2,406 | ) | $ | — | $ | — | $ | (2,406 | ) |
1Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument at the period end.
Delaware Ivy Total Return Bond Fund | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Securities | ||||||||||||
Assets: | ||||||||||||
Agency Mortgage-Backed Securities | $ | — | $ | 3,365,716 | $ | 3,365,716 | ||||||
Corporate Bonds | — | 9,837,672 | 9,837,672 | |||||||||
Government Agency Obligation | — | 221,613 | 221,613 | |||||||||
Sovereign Bonds | — | 8,234,276 | 8,234,276 | |||||||||
Supranational Banks | — | 426,861 | 426,861 | |||||||||
US Treasury Obligations | — | 1,383,154 | 1,383,154 | |||||||||
Options Purchased | — | 1,054 | 1,054 | |||||||||
Total Value of Securities Before Options Written | $ | — | $ | 23,470,346 | $ | 23,470,346 | ||||||
Liabilities: | ||||||||||||
Options Written | $ | — | $ | (435 | ) | $ | (435 | ) | ||||
Derivatives1 | ||||||||||||
Assets: | ||||||||||||
Centrally Cleared Interest Rate Swap Contracts | $ | — | $ | 13,723 | $ | 13,723 | ||||||
Forward Foreign Currency Exchange Contracts | — | 77,580 | 77,580 | |||||||||
Futures Contracts | 29,359 | — | 29,359 | |||||||||
Liabilities: | ||||||||||||
Centrally Cleared Interest Rate Swap Contracts | $ | — | $ | (187 | ) | $ | (187 | ) | ||||
Forward Foreign Currency Exchange Contracts | — | (1,744 | ) | (1,744 | ) | |||||||
Futures Contracts | (99,948 | ) | — | (99,948 | ) | |||||||
Over-The-Counter Credit Default Swap Contracts | — | (16,571 | ) | (16,571 | ) |
1Forward foreign currency exchange contracts, futures contracts and swap contracts are valued at the unrealized appreciation (depreciation) on the instrument at the period end.
During the six months ended March 31, 2024, there were no transfers into or out of Level 3 investments. Each Fund’s policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting period.
64
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning or end of the period in relation to that Fund’s net assets. As of March 31, 2024, Delaware Ivy Government Securities Fund, Delaware Ivy High Yield and Delaware Ivy Total Return Bond Fund had no Level 3 investments.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the Delaware Ivy Multi-Asset Income Fund:
Common Stocks | Convertible Bond | Corporate Bonds | Preferred Stock | Total | ||||||||||||||||
Balance as of 9/30/23 | $ | 1,229,647 | $ | 681,812 | $ | — | 1 | $ | 10,280 | $ | 1,921,739 | |||||||||
Purchases | — | 14,997 | — | — | 14,997 | |||||||||||||||
Sales | (1 | ) | — | (193,000 | ) | — | (193,001 | ) | ||||||||||||
Net realized gain (loss) | 1 | — | 193,000 | — | 193,001 | |||||||||||||||
Amortization | — | 1,180 | — | — | 1,180 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | (265,071 | ) | 254,629 | — | 2 | — | (10,442 | ) | ||||||||||||
Balance as of 3/31/24 | $ | 964,576 | $ | 952,618 | $ | — | $ | 10,280 | $ | 1,927,474 | ||||||||||
Net change in unrealized appreciation (depreciation) from Level 3 investments still held as of 3/31/24 | $ | (265,071 | ) | $ | 254,629 | $ | — | $ | — | $ | (10,442 | ) |
1The security was valued at zero on the “Schedules of investments” as of September 30, 2023 and is considered to be Level 3 investment in this table.
2Amount rounds to zero.
When market quotations are not readily available for one or more portfolio securities, the Fund's NAV shall be calculated by using the “fair value” of the securities as determined by the Pricing Committee. Such “fair value” is the amount that the Fund might reasonably expect to receive for the security (or asset) upon its current sale. Each such determination should be based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the size of the holding, (iii) the initial cost of the security, (iv) the existence of any contractual restrictions of the security’s disposition, (v) the price and extent of public trading in similar securities of the issuer or of comparable companies, (vi) quotations or evaluated prices from broker/ dealers and/or pricing services, (vii) information obtained from the issuer, analysts, and/or appropriate stock exchange (for exchange-traded securities), (viii) an analysis of the company’s financial statements, and (ix) an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
A significant change to the inputs may result in a significant change to the valuation. Quantitative information about Level 3 fair value measurements for Delaware Ivy Multi-Asset Income Fund is as follows:
Delaware Ivy Multi-Asset Income Fund
Assets | Value | Valuation Techniques | Unobservable Inputs | Input Value | ||||||
Common Stocks | $ | 62,738 | Market approach | EV/Revenue multiple | 0.41x | |||||
EV/EBITDA multiple | 6.71x | |||||||||
Common Stocks | 577,142 | Market approach | EV/Revenue multiple | 0.90x | ||||||
EV/EBITDA multiple | 2.56x | |||||||||
Common Stocks | 324,442 | Market approach | Financials | N/A | ||||||
Convertible Bonds | 952,618 | Market approach | Financials | N/A | ||||||
Preferred Stocks | 10,280 | Market approach | EV/Revenue multiple | 0.41x | ||||||
EV/EBITDA multiple | 6.71x |
Level 3 securities with a total value of $254 have been valued using third party pricing information without adjustment and are excluded from the table above.
65
Notes to financial statements
Ivy Funds
4. Capital Shares
Transactions in capital shares were as follows:
Delaware Ivy Government Securities Fund | Delaware Ivy High Yield Fund | Delaware Ivy Multi-Asset Income Fund | Delaware Ivy Total Return Bond Fund | |||||||||||||||||||||||||||||
Six months | Six months | Six months | Six months | |||||||||||||||||||||||||||||
ended | Year ended | ended | Year ended | ended | Year ended | ended | Year ended | |||||||||||||||||||||||||
3/31/24 | 9/30/23 | 3/31/24 | 9/30/23 | 3/31/24 | 9/30/23 | 3/31/24 | 9/30/23 | |||||||||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||||||||||
Class A | 1,578,741 | 1,407,552 | 73,943 | 227,769 | 235,345 | 453,351 | 55,364 | 219,793 | ||||||||||||||||||||||||
Class C | 22,636 | 49,292 | — | — | 6,388 | 18,436 | 2,655 | 4,357 | ||||||||||||||||||||||||
Class I | 951,834 | 5,471,568 | 200,729 | 543,695 | 134,907 | 473,912 | 236,457 | 268,371 | ||||||||||||||||||||||||
Class R6 | 486,565 | 3,243,433 | — | — | 29,280 | 11,830 | — | 288,187 | ||||||||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||||||||||||||||
Class A | 144,876 | 255,386 | 29,349 | 74,025 | 153,127 | 535,166 | 12,330 | 76,764 | ||||||||||||||||||||||||
Class C | 1,630 | 2,522 | — | — | 11,117 | 44,084 | 307 | 2,967 | ||||||||||||||||||||||||
Class I | 236,037 | 486,934 | 92,079 | 230,667 | 172,754 | 848,169 | 44,491 | 365,808 | ||||||||||||||||||||||||
Class R6 | 128,002 | 158,234 | 64 | 121 | 4,365 | 11,066 | — | 372,042 | ||||||||||||||||||||||||
Class Y | — | — | — | — | 217 | 820 | — | — | ||||||||||||||||||||||||
3,550,321 | 11,074,921 | 396,164 | 1,076,277 | 747,500 | 2,396,834 | 351,604 | 1,598,289 | |||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (1,927,337 | ) | (3,829,082 | ) | (257,465 | ) | (625,776 | ) | (860,695 | ) | (2,321,389 | ) | (148,875 | ) | (411,902 | ) | ||||||||||||||||
Class C | (63,088 | ) | (68,526 | ) | — | — | (82,141 | ) | (175,175 | ) | (3,104 | ) | (26,838 | ) | ||||||||||||||||||
Class I | (7,291,225 | ) | (10,584,092 | ) | (744,054 | ) | (2,111,210 | ) | (1,700,291 | ) | (6,050,863 | ) | (495,274 | ) | (2,641,498 | ) | ||||||||||||||||
Class R6 | (1,045,831 | ) | (2,117,439 | ) | — | — | (19,476 | ) | (29,583 | ) | (2,063,578 | ) | (2,625,441 | ) | ||||||||||||||||||
Class Y | — | — | — | — | — | (4,236 | ) | — | — | |||||||||||||||||||||||
(10,327,481 | ) | (16,599,139 | ) | (1,001,519 | ) | (2,736,986 | ) | (2,662,603 | ) | (8,581,246 | ) | (2,710,831 | ) | (5,705,679 | ) | |||||||||||||||||
Net decrease | (6,777,160 | ) | (5,524,218 | ) | (605,355 | ) | (1,660,709 | ) | (1,915,103 | ) | (6,184,412 | ) | (2,359,227 | ) | (4,107,390 | ) |
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included in shares sold and shares redeemed in the tables above and on the previous page and on the “Statements of changes in net assets.” For the six months ended March 31, 2024 and the year ended September 30, 2023, each Fund had the following exchange transactions:
Six months ended March 31, 2024 | Year ended September 30, 2023 | |||||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | Value | Exchange Redemptions | Exchange Subscriptions | Value | |||||||||||||||||||
Delaware Ivy Government Securities Fund | $ | 10,783 | $ | 774,509 | ||||||||||||||||||||
Class A | 1,743 | 635 | 155,837 | 1,246 | ||||||||||||||||||||
Class C | 635 | — | 1,246 | — | ||||||||||||||||||||
Class I | — | 1,743 | — | 155,888 | ||||||||||||||||||||
Delaware Ivy High Yield Fund* | $ | — | $ | 22,786 | ||||||||||||||||||||
Class A | — | — | 2,674 | — | ||||||||||||||||||||
Class I | — | — | — | 2,671 |
66
Six months ended March 31, 2024 | Year ended September 30, 2023 | |||||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | Value | Exchange Redemptions | Exchange Subscriptions | Value | |||||||||||||||||||
Delaware Ivy Multi-Asset Income Fund | $ | 50,800 | $ | 76,661 | ||||||||||||||||||||
Class A | — | 5,334 | 2,188 | 5,889 | ||||||||||||||||||||
Class C | 5,333 | — | 5,895 | — | ||||||||||||||||||||
Class I | — | — | — | 2,184 | ||||||||||||||||||||
Delaware Ivy Total Return Bond Fund | $ | 643 | $ | 71,818 | ||||||||||||||||||||
Class A | — | 77 | 7,376 | 1,331 | ||||||||||||||||||||
Class C | 79 | — | 1,347 | — | ||||||||||||||||||||
Class I | — | — | — | 7,323 |
*Delaware Ivy High Yield Fund did not have any exchange transactions for the six months ended March 31, 2024.
5. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $355,000,000 revolving line of credit (Agreement) intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum of one third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on October 30, 2023.
On October 30, 2023, each Fund, along with the other Participants, entered into an amendment to the Agreement for a $335,000,000 revolving line of credit to be used as described above. It operates in substantially the same manner as the original Agreement. Under the amendment to the Agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants based on a weighted average of the respective net assets of each Participant. The line of credit available under the Agreement expires on October 28, 2024.
Each Fund had no amounts outstanding as of March 31, 2024, or at any time during the period then ended.
6. Interfund Lending Program
Pursuant to an exemptive order issued by the SEC (Order), the Ivy Funds and Ivy Variable Insurance Portfolios (collectively, the Funds, only for purposes of this Note 6) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (Interfund Lending Program). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each, an Interfund Loan), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. This program is in existence but is not currently in use. The Funds made no Interfund Loans under the Interfund Lending Program during the six months ended March 31, 2024.
7. Derivatives
US GAAP requires disclosures that enable investors to understand: (1) how and why an entity uses derivatives; (2) how they are accounted for; and (3) how they affect an entity’s results of operations and financial position.
Forward Foreign Currency Exchange Contracts — Each Fund may enter into forward foreign currency exchange contracts as a way of managing foreign exchange rate risk. Each Fund may enter into these contracts to fix the US dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. Each Fund may also enter into these contracts to hedge the US dollar value of securities it already owns that are denominated in foreign currencies. In addition, each Fund may enter into these contracts to facilitate or expedite the settlement of portfolio transactions. The change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
67
Notes to financial statements
Ivy Funds
7. Derivatives (continued)
The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts limit the risk of loss due to an unfavorable change in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency change favorably. In addition, each Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. Each Fund’s maximum risk of loss from counterparty credit risk is the value of its currency exchanged with the counterparty. The risk is generally mitigated by having a netting arrangement between each Fund and the counterparty and by the posting of collateral by the counterparty to each Fund to cover each Fund’s exposure to the counterparty. Open forward foreign currency exchange contracts, if any, are disclosed on the “Schedules of investments.”
During the six months ended March 31, 2024, Delaware Ivy Total Return Bond Fund used forward foreign currency exchange contracts to hedge the US dollar value of securities it already owns that are denominated in foreign currencies to decrease exposure to foreign currencies.
Futures Contracts — A futures contract is an agreement in which the writer (or seller) of the contract agrees to deliver to the buyer an amount of cash or securities equal to a specific dollar amount times the difference between the value of a specific security or index at the close of the last trading day of the contract and the price at which the agreement is made. Each Fund may use futures contracts in the normal course of pursuing its investment objective. Each Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions. Upon entering into a futures contract, the Funds deposit cash or pledge US government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Funds as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is reduced counterparty credit risk to the Funds because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Delaware Ivy Government Securities Fund posted $271,893, Delaware Ivy Multi-Asset Income Fund posted $6,501 and Delaware Ivy Total Return Bond Fund posted $240,872 cash collateral as margin for open futures contracts, which is presented in “Cash collateral due from brokers” on the “Statements of assets and liabilities.” Open futures contracts, if any, are disclosed on the “Schedules of investments.”
During the six months ended March 31, 2024, the Delaware Ivy Multi-Asset Income Fund experienced net realized and unrealized gains or losses attributable to futures contracts, which are disclosed on the "Statements of assets and liabilities" and the “Statements of operations.”
During the six months ended March 31, 2024, Delaware Ivy Government Securities Fund and Delaware Ivy Total Return Bond Fund invested in futures contracts to hedge each Fund’s existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions. During the six months ended March 31, 2024, Delaware Ivy Multi-Asset Income Fund invested in futures contracts to hedge the Fund’s existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions and as a cash management tool.
Options Contracts — Each Fund may enter into options contracts in the normal course of pursuing its investment objective. Each Fund may buy or write options contracts for any number of reasons, including without limitation: to manage each Fund’s exposure to changes in securities prices caused by interest rates or market conditions and foreign currencies; as an efficient means of adjusting each Fund’s overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. Each Fund may buy or write call or put options on securities, futures, swaps, swaptions, financial indices, and foreign currencies. When each Fund buys an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the option purchased. When each Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the option written. Premiums received from writing options that expire unexercised are treated by each Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether each Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by each Fund. Each Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written
68
option. When writing options, each Fund is subject to minimal counterparty risk because the counterparty is only obligated to pay premiums and does not bear the market risk of an unfavorable market change. Open option contracts, if any, are disclosed on the “Schedules of investments.”
During the six months ended March 31, 2024, Delaware Ivy Government Securities Fund and Delaware Ivy Total Return Bond Fund used options contracts to manage each Fund’s exposure to changes in securities prices caused by interest rates or market conditions.
Swap Contracts — Delaware Ivy Total Return Bond Fund may enter into CDS contracts in the normal course of pursuing its investment objective. Delaware Ivy Total Return Bond Fund entered into CDS contracts in order to hedge against a credit event. The Fund will not be permitted to enter into any swap transactions unless, at the time of entering into such transactions, the unsecured long-term debt of the actual counterparty, combined with any credit enhancements, is rated at least BBB- by Standard & Poor’s Financial Services LLC (S&P) or Baa3 by Moody’s Investors Service, Inc. (Moody’s) or is determined to be of equivalent credit quality by DMC.
Interest Rate Swaps. An IRS contract is an exchange of interest rates between counterparties. In one instance, an interest rate swap involves payments received by a Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation (depreciation) on swap contracts. Upon periodic payment (receipt) or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the IRS contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty and (2) for cleared swaps, trading these instruments through a central counterparty.
During the six months ended March 31, 2024, Delaware Ivy Total Return Bond Fund used IRS contracts to manage the Fund’s sensitivity to interest rates or to hedge against changes in interest rates.
Credit Default Swaps. A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the reference security (or basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.
During the six months ended March 31, 2024, Delaware Ivy Total Return Bond Fund entered into CDS contracts as a purchaser, as a hedge against credit events. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement. Initial margin and variation margin are posted to central counterparties for centrally cleared CDS basket trades, as determined by the applicable central counterparty.
CDS contracts may involve greater risks than if the Fund had invested in the reference obligation directly. CDS contracts are subject to general market risk, liquidity risk, counterparty risk, and credit risk. The Fund’s maximum risk of loss from counterparty credit risk, either as the seller of protection or the buyer of protection, is the fair value of the contract. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty, and (2) for cleared swaps, trading these instruments through a central counterparty.
During the six months ended March 31, 2024, Delaware Ivy Total Return Bond Fund used CDS contracts to hedge against credit events.
During the six months ended March 31, 2024, Delaware Ivy Total Return Bond Fund posted $47,728 cash collateral for certain centrally cleared derivatives, which is included in “Cash collateral due from brokers” on the “Statements of assets and liabilities.”
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Notes to financial statements
Ivy Funds
7. Derivatives (continued)
Fair values of derivative instruments as of March 31, 2024 were as follows:
Delaware Ivy Government Securities Fund Asset Derivatives Fair Value | ||||
Interest | ||||
Statements of Assets and | Rate | |||
Liabilities Location | Contracts | |||
Variation margin due from broker on futures contracts* | $ | 39,247 |
Delaware Ivy Government Securities Fund Liability Derivatives Fair Value | ||||
Interest | ||||
Statements of Assets and | Rate | |||
Liabilities Location | Contracts | |||
Variation margin due from broker on futures contracts* | $ | (4,993 | ) |
Delaware Ivy Total Return Bond Fund | ||||||||||||
Asset Derivatives Fair Value | ||||||||||||
Interest | ||||||||||||
Statements of Assets and | Currency | Rate | ||||||||||
Liabilities Location | Contracts | Contracts | Total | |||||||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 77,580 | $ | — | $ | 77,580 | ||||||
Variation margin due from broker on futures contracts* | — | 29,359 | 29,359 | |||||||||
Variation margin due to brokers on centrally cleared interest rate swap contracts* | — | 13,723 | 13,723 | |||||||||
Options purchased, at value** | 1,054 | — | 1,054 | |||||||||
Total | $ | 78,634 | $ | 43,082 | $ | 121,716 |
Delaware Ivy Total Return Bond Fund | ||||||||||||||||
Liability Derivatives Fair Value | ||||||||||||||||
Interest | ||||||||||||||||
Statements of Assets and | Currency | Rate | Credit | |||||||||||||
Liabilities Location | Contracts | Contracts | Contracts | Total | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | (1,744 | ) | $ | — | $ | — | $ | (1,744 | ) | ||||||
Variation margin due from broker on futures contracts* | — | (99,948 | ) | — | (99,948 | ) | ||||||||||
Variation margin due to brokers on centrally cleared interest rate swap contracts* | — | (187 | ) | — | (187 | ) | ||||||||||
Unrealized depreciation on over-the-counter credit default swap contracts | — | — | (16,571 | ) | (16,571 | ) | ||||||||||
Options written, at value | (435 | ) | — | — | (435 | ) | ||||||||||
Total | $ | (2,179 | ) | $ | (100,135 | ) | $ | (16,571 | ) | $ | (118,885 | ) |
*Includes cumulative appreciation (depreciation) of futures contracts, and centrally cleared IRS contracts from the date the contracts were opened through March 31, 2024. Only current day variation margin is reported on the Fund’s “Statements of assets and liabilities.”
** Included with “Investments, at value.”
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The effect of derivative instruments on the “Statements of operations” for the six months ended March 31, 2024 was as follows:
Delaware Ivy Government Securities Fund | Net Realized Gain (Loss) on: | |||||||||||
Futures Contracts | Options Written | Total | ||||||||||
Interest rate contracts | $ | (96,266 | ) | $ | 4,948 | $ | (91,318 | ) |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures | ||||
Contracts | ||||
Interest rate contracts | $ | 151,385 |
Delaware Ivy Total Return Bond Fund | Net Realized Gain (Loss) on: | |||||||||||||||||||||||
Forward Foreign Currency Exchange Contracts | Futures Contracts | Options Purchased | Options Written | Swap Contracts | Total | |||||||||||||||||||
Currency contracts | $ | 373,474 | $ | 181,609 | $ | 19,873 | $ | (11,847 | ) | $ | 34,959 | $ | 598,068 | |||||||||||
Interest rate contracts | — | (51,250 | ) | 9,059 | (1,333 | ) | 35,748 | (7,776 | ) | |||||||||||||||
Credit contracts | — | 48,781 | (11,943 | ) | 7,629 | (18,387 | ) | 26,080 | ||||||||||||||||
Total | $ | 373,474 | $ | 179,140 | $ | 16,989 | $ | (5,551 | ) | $ | 52,320 | $ | 616,372 |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Forward Foreign Currency Exchange Contracts | Futures Contracts | Options Purchased | Options Written | Swap Contracts | Total | |||||||||||||||||||
Currency contracts | $ | (445,767 | ) | $ | — | $ | — | $ | — | $ | — | $ | (445,767 | ) | ||||||||||
Interest rate contracts | — | (168,366 | ) | — | — | — | (168,366 | ) | ||||||||||||||||
Credit contracts | — | — | (60,035 | ) | 16,814 | (8,837 | ) | (52,058 | ) | |||||||||||||||
Total | $ | (445,767 | ) | $ | (168,366 | ) | $ | (60,035 | ) | $ | 16,814 | $ | (8,837 | ) | $ | (666,191 | ) |
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Notes to financial statements
Ivy Funds
7. Derivatives (continued)
The tables below summarize the average daily balance of derivative holdings by certain Funds during the six months ended March 31, 2024:
Long Derivative Volume | ||||||||||
Delaware Ivy Government Securities Fund | Delaware Ivy Multi-Asset Income Fund | Delaware Ivy Total Return Bond Fund | ||||||||
Forward foreign currency exchange contracts (average notional value) | USD | — | USD | — | USD | 2,389,122 | ||||
Futures contracts (average notional value) | 16,131,955 | 939,741 | 30,043,836 | |||||||
Options contracts (average notional value)* | — | — | 28,382 | |||||||
CDS contracts (average notional value)** | USD | — | USD | — | USD | 891,661 | ||||
Interest rate swap contracts (average notional value) | AUD | — | AUD | — | AUD | 2,701,210 | ||||
Interest rate swap contracts (average notional value) | EUR | — | EUR | — | EUR | 469,766 | ||||
Interest rate swap contracts (average notional value) | GBP | — | GBP | — | GBP | 116,677 | ||||
Interest rate swap contracts (average notional value) | JPY | — | JPY | — | JPY | 433,467,742 | ||||
Interest rate swap contracts (average notional value) | USD | — | USD | — | USD | 138,823 |
Short Derivative Volume | ||||||||||
Delaware Ivy Government Securities Fund | Delaware Ivy Multi-Asset Income Fund | Delaware Ivy Total Return Bond Fund | ||||||||
Forward foreign currency exchange contracts (average notional value) | USD | — | USD | — | USD | 13,443,066 | ||||
Futures contracts (average notional value) | — | 521,744 | 19,814,803 | |||||||
Options contracts (average notional value)* | 275 | — | 8,985 |
* Long represents purchased options and short represents written options.
** Long represents buying protection and short represents selling protection.
8. Offsetting
Certain Funds entered into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or a similar agreement with certain of its derivative contract counterparties in order to better define its contractual rights and to secure rights that will help certain Funds mitigate its counterparty risk. An ISDA Master Agreement is a bilateral agreement between certain Funds and a counterparty that governs over-the-counter derivatives and foreign exchange contracts and typically contains, among other things, collateral posting items and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, certain Funds may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out), including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
For financial reporting purposes, certain Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements on the “Statements of assets and liabilities.”
At March 31, 2024, certain Funds had the following assets and liabilities subject to offsetting provisions:
Offsetting of Financial Assets and Liabilities and Derivative Assets and Liabilities
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Delaware Ivy Total Return Bond Fund | ||||||||||||
Gross Value of | Gross Value of | |||||||||||
Counterparty | Derivative Asset | Derivative Liability | Net Position | |||||||||
Citigroup | $ | 23,637 | $ | (217 | ) | $ | 23,420 | |||||
JPMorgan Chase Bank | 21,264 | (42,467 | ) | (21,203 | ) | |||||||
TD Bank | 45,857 | (35 | ) | 45,822 | ||||||||
Total | 90,758 | (42,719 | ) | 48,039 |
Fair Value of | Fair Value of | |||||||||||||||||||||||
Non-Cash | Cash Collateral | Non-Cash | Cash Collateral | |||||||||||||||||||||
Counterparty | Net Position | Collateral Received | Received | Collateral Pledged | Pledged | Net Exposure(a) | ||||||||||||||||||
Citigroup | $ | 23,420 | $ | — | $ | — | $ | — | $ | — | $ | 23,420 | ||||||||||||
JPMorgan Chase Bank | (21,203 | ) | — | — | — | — | (21,203 | ) | ||||||||||||||||
TD Bank | 45,822 | — | — | — | — | 45,822 | ||||||||||||||||||
Total | $ | 90,758 | — | — | — | — | $ | 48,039 |
(a) The value of the related collateral exceeded the value of the derivatives as of March 31, 2024, as applicable.
(b) Net exposure represents the receivable (payable) that would be due from (to) the counterparty in the event of default.
9. Securities Lending
Each Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day, may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by each Fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; certain money market funds; and asset-backed securities. Each Fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to each Fund or, at the discretion of the lending agent, replace the loaned securities. Each Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. Each Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, each Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the
73
Notes to financial statements
Ivy Funds
9. Securities Lending (continued)
earnings from the collateral investments are shared among each Fund, the security lending agent, and the borrower. Each Fund records security lending income net of allocations to the security lending agent and the borrower.
Each Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in each collateral investment account defaulted or became impaired. Under those circumstances, the value of each Fund’s cash collateral account may be less than the amount each Fund would be required to return to the borrowers of the securities and each Fund would be required to make up for this shortfall.
At March 31, 2024, each Fund had no securities out on loan.
10. Credit and Market Risks
The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.
Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which the Funds invest will cause the NAV of the Funds to fluctuate.
Some countries in which the Funds may invest require governmental approval for the repatriation of investment income, capital, or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller, less liquid, and more volatile than the major securities markets in the US. Consequently, acquisition and disposition of securities by the Funds may be inhibited. In addition, a significant portion of the aggregate market value of securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Funds.
Certain Funds invest a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by S&P and lower than Baa3 by Moody's, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher-rated securities. Additionally, lower-rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Certain Funds invest in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are CMOs. CMOs are debt securities issued by US government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligations and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse effect on a Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.
Certain Funds may invest in mortgage-backed and asset-backed securities. Mortgage-backed and asset-backed securities, like other fixed income securities, are subject to credit risk and interest rate risk, and may also be subject to prepayment risk and extension risk. Mortgage-backed and asset-backed securities can be highly sensitive to interest rate changes. As a result, small movements in interest rates can
74
substantially impact the value and liquidity of these securities. Prepayment risk is the risk that the principal on mortgage-backed or asset-backed securities may be prepaid at any time, which will reduce the yield and market value of the securities and may cause a Fund to reinvest the proceeds in lower yielding securities. Extension risk is the risk that principal on mortgage-backed or asset-backed securities will be repaid more slowly than expected, which may reduce the proceeds available for reinvestment in higher yielding securities and may cause the security to experience greater volatility due to the extended maturity of the security. When interest rates rise, the value of mortgage-backed and asset-backed securities can be expected to decline. When interest rates go down, however, the value of these securities may not increase as much as other fixed income securities due to borrowers refinancing their loans at lower interest rates or prepaying their loans. In addition, mortgage-backed and asset-backed securities may decline in value, become more volatile, face difficulties in valuation, or experience reduced liquidity due to changes in general economic conditions. During periods of economic downturn, for example, underlying borrowers may not make timely payments on their loans and the value of property that secures the loans may decline in value such that it is worth less than the amount of the associated loans. If the collateral securing a mortgage-backed or asset-backed security is insufficient to repay the loan, a Fund could sustain a loss. Such risks generally will be heightened where a mortgage-backed or asset-backed security includes “subprime” loans. Although mortgage-backed securities are often supported by government guarantees or private insurance, there can be no guarantee that those obligations will be met. Furthermore, in certain economic conditions, loan servicers, loan originators and other participants in the market for mortgage-backed and other asset-backed securities may be unable to receive sufficient funding, impairing their ability to perform their obligations on the loans. Certain mortgage-backed or asset-backed securities may be more susceptible to these risks than other mortgage-backed, asset-backed, or fixed-income securities. For example, a Fund’s investments in CMOs, real estate mortgage investment conduits (“REMICs”), and stripped mortgage-backed securities are generally highly susceptible to interest rate risk, prepayment risk, and extension risk. At times, these investments may be difficult to value and/or illiquid. Some classes of CMOs and REMICs may have preference in receiving principal or interest payments relative to more junior classes. The market prices and yields of these junior classes will generally be more volatile than more senior classes and will be more susceptible to interest rate risk, prepayment risk, and extension risk than more senior classes. Stripped mortgage-backed securities that receive only payments of interest (“IOs”) will generally decrease in value if interest rates decline or prepayment rates increase. Stripped mortgage-backed securities that receive only payments of principal (“POs”) will generally decrease in value if interest rates increase or prepayment rates decrease. These changes in value can be substantial and could cause a Fund to lose the entire value of its investment in CMOs, REMICs, and stripped mortgage-backed securities.
Certain Funds invest in bank loans and other securities that may subject them to direct indebtedness risk, the risk that the Funds will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower. Loans that are fully secured offer the Funds more protection than unsecured loans in the event of nonpayment of scheduled interest or principal, although there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated. Some loans or claims may be in default at the time of purchase. Certain of the loans and the other direct indebtedness acquired by the Funds may involve revolving credit facilities or other standby financing commitments that obligate the Funds to pay additional cash on a certain date or on demand. These commitments may require each Fund to increase its investment in a company at a time when the Funds might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that each Fund is committed to advance additional funds, it will at all times hold and maintain cash or other high grade debt obligations in an amount sufficient to meet such commitments.
As the Funds may be required to rely upon another lending institution to collect and pass on to the Funds amounts payable with respect to the loan and to enforce the Funds' rights under the loan and other direct indebtedness, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Funds from receiving such amounts. The highly leveraged nature of many loans may make them especially vulnerable to adverse changes in economic or market conditions. Investments in such loans and other direct indebtedness may involve additional risk to the Funds. There were no unfunded loan commitments at the six months ended March 31, 2024.
Certain Funds invest in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. The Funds will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Certain Funds may invest in REITs and are subject to the risks associated with that industry. If a Fund holds real estate directly or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. There were no direct real estate holdings during the six months ended March 31, 2024. The Funds’ REIT holdings are also affected by interest rate changes, particularly if the REITs they hold use floating rate debt to finance their ongoing operations. The Funds also invest in real estate acquired as a result of
75
Notes to financial statements
Ivy Funds
10. Credit and Market Risks (continued)
ownership of securities or other instruments, including issuers that invest, deal, or otherwise engage in transactions in real estate or interests therein. These instruments may include interests in private equity limited partnerships or limited liability companies that hold real estate investments (Real Estate Limited Partnerships). The Funds will limit their investments in Real Estate Limited Partnerships to 5% of their total assets at the time of purchase.
Derivatives contracts, such as futures, forward foreign currency contracts, options, and swaps, may involve additional expenses (such as the payment of premiums) and are subject to significant loss, which may exceed amounts disclosed on the “Statements of assets and liabilities”, if a security, index, reference rate, or other asset or market factor to which a derivatives contract is associated, moves in the opposite direction from what the portfolio manager anticipated. When used for hedging, the change in value of the derivatives instrument may also not correlate specifically with the currency, rate, or other risk being hedged, in which case a Fund may not realize the intended benefits. Derivatives contracts are also subject to the risk that the counterparty may fail to perform its obligations under the contract due to, among other reasons, financial difficulties (such as a bankruptcy or reorganization).
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of the Funds’ limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedules of investments.”
11. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
12. Subsequent Events
On January 16, 2024, the Board approved the reorganization of the Funds below into and with a substantially similar fund and class of another Delaware Fund (each a “Reorganization”) as shown in the table below:
Acquired Fund | Acquiring Fund |
Delaware Ivy Government Securities Fund, a series of the Trust | Delaware Limited-Term Diversified Income Fund, a series of Delaware Group Limited-Term Government Funds |
Delaware Ivy High Yield Fund, a series of the Trust | Delaware Ivy High Income Fund, a series of the Trust |
Delaware Ivy Total Return Bond Fund, a series of the Trust | Delaware Ivy Global Bond Fund, a series of the Trust |
Delaware Ivy Government Securities Fund shareholders approved the reorganization at a special shareholder meeting held on March 25, 2024. The results of the voting at the meeting were as follows:
Proposal | For | Against | Abstain | |||||||||
Reorganization | 13,993,109 | 150,650 | 546,154 |
The other Reorganizations did not require shareholder approval. Each Reorganization occurred on April 26, 2024.
Management has determined that no other material events or transactions occurred subsequent to March 31, 2024, that would require recognition or disclosure in the Funds’ financial statements.
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Other Fund information (Unaudited)
Ivy Funds
Form N-PORT and proxy voting information
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Forms N-PORT. Each Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedule of Investments included in the Funds’ most recent Form N-PORT are available without charge on the Funds’ website at delawarefunds.com/literature.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
77
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Semiannual report
Ivy Funds
Delaware Sustainable Equity Income Fund
March 31, 2024
Carefully consider a Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in a Fund’s prospectus and its 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.
You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawarefunds.com/edelivery.
Experience Delaware Funds by Macquarie®
Macquarie Asset Management (MAM) is a global asset manager that aims to deliver positive impact for everyone. MAM’s public markets businesses trace their roots to 1929 and partner with institutional and individual clients to deliver specialist active investment capabilities across global equities, fixed income, and multi-asset solutions using a conviction-based, long-term approach to investing. In the US, retail investors recognize our Delaware Funds by Macquarie family of funds as one of the oldest mutual fund families.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for the Delaware Funds at delawarefunds.com/literature.
Manage your account online
● | Check your account balance and transactions |
● | View statements and tax forms |
● | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities, and multi-asset solutions.
The Delaware Funds are advised by Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT), a US registered investment adviser, and distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
The Fund is governed by US laws and regulations.
This semiannual report is for the information of Delaware Sustainable Equity Income Fund shareholders.
Unless otherwise noted, views expressed herein are current as of March 31, 2024, and subject to change for events occurring after such date. These views are not intended to be investment advice, to forecast future events, or to guarantee future results.
The Fund is not FDIC insured and is not guaranteed. It is possible to lose the principal amount invested.
All third-party marks cited are the property of their respective owners.
© 2024 Macquarie Management Holdings, Inc.
For the six-month period from October 1, 2023 to March 31, 2024 (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from October 1, 2023 to March 31, 2024.
Actual expenses
The first section of the table shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the table shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Fund’s expenses shown in the table reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
1 |
Disclosure of Fund expenses
For the six-month period from October 1, 2023 to March 31, 2024 (Unaudited)
Delaware Sustainable Equity Income Fund
Expense analysis of an investment of $1,000
Beginning Account Value 10/1/23 | Ending Account Value 3/31/24 | Annualized Expense Ratio | Expenses Paid During Period 10/1/23 to 3/31/24* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,195.10 | 0.74% | $ | 4.06 | |||||||
Class I | 1,000.00 | 1,198.00 | 0.50% | 2.75 | ||||||||||
Class R | 1,000.00 | 1,192.60 | 1.11% | 6.08 | ||||||||||
Class R6 | 1,000.00 | 1,197.20 | 0.46% | 2.53 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.30 | 0.74% | $ | 3.74 | |||||||
Class I | 1,000.00 | 1,022.50 | 0.50% | 2.53 | ||||||||||
Class R | 1,000.00 | 1,019.45 | 1.11% | 5.60 | ||||||||||
Class R6 | 1,000.00 | 1,022.70 | 0.46% | 2.33 |
* | ”Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
† | Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns. |
In addition to the Fund’s expenses reflected above, the Fund also indirectly bears its portion of the fees and expenses of any investment companies (Underlying Funds), in which it invests. The table above does not reflect the expenses of any Underlying Funds.
2 |
Security type / sector allocations and top 10 equity holdings
Delaware Sustainable Equity Income Fund | As of March 31, 2024 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different from another fund’s sector designations.
Security type / sector | Percentage of net assets | |||
Common Stocks | 99.18 | % | ||
Communication Services | 4.76 | % | ||
Consumer Discretionary | 4.87 | % | ||
Consumer Staples | 7.49 | % | ||
Energy | 7.75 | % | ||
Financials | 22.50 | % | ||
Healthcare | 14.54 | % | ||
Industrials | 14.04 | % | ||
Information Technology | 9.55 | % | ||
Materials | 4.72 | % | ||
Real Estate | 4.60 | % | ||
Utilities | 4.36 | % | ||
Short-Term Investments | 0.29 | % | ||
Total Value of Securities | 99.47 | % | ||
Receivables and Other Assets Net of Liabilities | 0.53 | % | ||
Total Net Assets | 100.00 | % |
Top 10 equity holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
Top 10 equity holdings | Percentage of net assets | |||
JPMorgan Chase & Co. | 2.78 | % | ||
Chevron | 2.24 | % | ||
Johnson & Johnson | 1.82 | % | ||
Procter & Gamble | 1.61 | % | ||
ConocoPhillips | 1.53 | % | ||
Merck & Co. | 1.44 | % | ||
General Electric | 1.35 | % | ||
S&P Global | 1.32 | % | ||
BlackRock | 1.28 | % | ||
Walt Disney | 1.21 | % |
3 |
Delaware Sustainable Equity Income Fund | March 31, 2024 (Unaudited) |
Number of shares | Value (US $) | |||||||
Common Stocks — 99.18% | ||||||||
Communication Services — 4.76% | ||||||||
AT&T | 13,623 | $ | 239,765 | |||||
Comcast Class A | 8,264 | 358,244 | ||||||
News Class B | 7,241 | 195,941 | ||||||
T-Mobile US | 1,293 | 211,044 | ||||||
Verizon Communications | 7,955 | 333,792 | ||||||
Walt Disney | 3,731 | 456,525 | ||||||
1,795,311 | ||||||||
Consumer Discretionary — 4.87% | ||||||||
Best Buy | 2,171 | 178,087 | ||||||
Ford Motor | 11,349 | 150,715 | ||||||
General Motors | 3,125 | 141,719 | ||||||
Hilton Worldwide Holdings | 1,325 | 282,636 | ||||||
Lowe’s | 653 | 166,339 | ||||||
McDonald’s | 939 | 264,751 | ||||||
NIKE Class B | 1,482 | 139,278 | ||||||
Ralph Lauren | 857 | 160,910 | ||||||
Tapestry | 2,224 | 105,595 | ||||||
Whirlpool | 1,181 | 141,283 | ||||||
Yum! Brands | 744 | 103,156 | ||||||
1,834,469 | ||||||||
Consumer Staples — 7.49% | ||||||||
Archer-Daniels-Midland | 2,266 | 142,327 | ||||||
Coca-Cola | 4,531 | 277,207 | ||||||
Colgate-Palmolive | 2,319 | 208,826 | ||||||
Conagra Brands | 4,350 | 128,934 | ||||||
Ingredion | 877 | 102,477 | ||||||
J M Smucker | 998 | 125,618 | ||||||
Kellanova | 2,501 | 143,282 | ||||||
Keurig Dr Pepper | 3,089 | 94,740 | ||||||
Kroger | 5,317 | 303,760 | ||||||
Mondelez International Class A | 3,090 | 216,300 | ||||||
PepsiCo | 1,182 | 206,862 | ||||||
Procter & Gamble | 3,743 | 607,302 | ||||||
Target | 942 | 166,932 | ||||||
Walgreens Boots Alliance | 4,478 | 97,128 | ||||||
2,821,695 | ||||||||
Energy — 7.75% | ||||||||
Baker Hughes | 7,745 | 259,458 | ||||||
Chevron | 5,360 | 845,486 | ||||||
ConocoPhillips | 4,543 | 578,233 |
4 |
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
Energy (continued) | ||||||||
Devon Energy | 5,446 | $ | 273,280 | |||||
Hess | 1,598 | 243,919 | ||||||
Pioneer Natural Resources | 1,537 | 403,462 | ||||||
Schlumberger | 5,806 | 318,227 | ||||||
2,922,065 | ||||||||
Financials — 22.50% | ||||||||
Aflac | 2,028 | 174,124 | ||||||
Allstate | 1,136 | 196,539 | ||||||
American Express | 1,600 | 364,304 | ||||||
American International Group | 3,067 | 239,747 | ||||||
Aon Class A | 381 | 127,147 | ||||||
Arthur J Gallagher & Co. | 724 | 181,029 | ||||||
Bank of America | 11,984 | 454,433 | ||||||
Bank of New York Mellon | 4,838 | 278,766 | ||||||
BlackRock | 581 | 484,380 | ||||||
Capital One Financial | 1,635 | 243,435 | ||||||
Chubb | 1,059 | 274,419 | ||||||
Citigroup | 4,762 | 301,149 | ||||||
Fifth Third Bancorp | 5,899 | 219,502 | ||||||
Goldman Sachs Group | 996 | 416,019 | ||||||
Hartford Financial Services Group | 1,887 | 194,455 | ||||||
Huntington Bancshares | 17,533 | 244,585 | ||||||
JPMorgan Chase & Co. | 5,231 | 1,047,769 | ||||||
MetLife | 2,194 | 162,597 | ||||||
Moody’s | 511 | 200,838 | ||||||
Morgan Stanley | 4,320 | 406,771 | ||||||
Nasdaq | 2,940 | 185,514 | ||||||
Northern Trust | 2,312 | 205,583 | ||||||
PNC Financial Services Group | 1,534 | 247,895 | ||||||
Popular | 1,455 | 128,171 | ||||||
S&P Global | 1,172 | 498,628 | ||||||
State Street | 2,408 | 186,187 | ||||||
T Rowe Price Group | 2,863 | 349,057 | ||||||
US Bancorp | 4,563 | 203,966 | ||||||
Voya Financial | 2,442 | 180,513 | ||||||
Western Union | 6,097 | 85,236 | ||||||
8,482,758 | ||||||||
Healthcare — 14.54% | ||||||||
Abbott Laboratories | 3,376 | 383,716 | ||||||
Amgen | 434 | 123,395 |
5 |
Schedule of investments
Delaware Sustainable Equity Income Fund
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
Healthcare (continued) | ||||||||
Becton Dickinson and Co. | 798 | $ | 197,465 | |||||
Boston Scientific † | 5,615 | 384,571 | ||||||
Bristol-Myers Squibb | 4,891 | 265,239 | ||||||
Cigna Group | 791 | 287,283 | ||||||
CVS Health | 3,220 | 256,827 | ||||||
Danaher | 1,592 | 397,554 | ||||||
Elevance Health | 472 | 244,751 | ||||||
Gilead Sciences | 2,780 | 203,635 | ||||||
Johnson & Johnson | 4,342 | 686,861 | ||||||
McKesson | 334 | 179,308 | ||||||
Medtronic | 3,906 | 340,408 | ||||||
Merck & Co. | 4,126 | 544,426 | ||||||
Pfizer | 11,437 | 317,377 | ||||||
Regeneron Pharmaceuticals † | 255 | 245,435 | ||||||
Thermo Fisher Scientific | 456 | 265,032 | ||||||
UnitedHealth Group | 323 | 159,788 | ||||||
5,483,071 | ||||||||
Industrials — 14.04% | ||||||||
3M | 2,411 | 255,735 | ||||||
AECOM | 1,347 | 132,114 | ||||||
Armstrong World Industries | 848 | 105,338 | ||||||
Automatic Data Processing | 514 | 128,366 | ||||||
Carlisle | 379 | 148,511 | ||||||
Cummins | 676 | 199,183 | ||||||
Dover | 1,198 | 212,274 | ||||||
Eaton | 938 | 293,294 | ||||||
Emerson Electric | 2,457 | 278,673 | ||||||
FedEx | 770 | 223,100 | ||||||
Fortive | 1,393 | 119,826 | ||||||
General Electric | 2,909 | 510,617 | ||||||
Ingersoll Rand | 2,458 | 233,387 | ||||||
Johnson Controls International | 2,329 | 152,130 | ||||||
KBR | 2,474 | 157,495 | ||||||
Lennox International | 281 | 137,341 | ||||||
Oshkosh | 970 | 120,969 | ||||||
Otis Worldwide | 1,650 | 163,795 | ||||||
Owens Corning | 767 | 127,936 | ||||||
Parker-Hannifin | 739 | 410,729 | ||||||
Republic Services | 905 | 173,253 | ||||||
Union Pacific | 1,413 | 347,499 | ||||||
United Parcel Service Class B | 1,425 | 211,798 |
6 |
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
Industrials (continued) | ||||||||
Waste Management | 566 | $ | 120,643 | |||||
Westinghouse Air Brake Technologies | 1,349 | 196,522 | ||||||
Xylem | 1,024 | 132,342 | ||||||
5,292,870 | ||||||||
Information Technology — 9.55% | ||||||||
Advanced Micro Devices † | 1,535 | 277,052 | ||||||
Analog Devices | 1,553 | 307,168 | ||||||
Applied Materials | 758 | 156,322 | ||||||
Cisco Systems | 8,589 | 428,677 | ||||||
Cognizant Technology Solutions Class A | 2,217 | 162,484 | ||||||
Hewlett Packard Enterprise | 5,115 | 90,689 | ||||||
Intel | 8,215 | 362,857 | ||||||
International Business Machines | 2,295 | 438,253 | ||||||
Juniper Networks | 2,513 | 93,132 | ||||||
Marvell Technology | 2,142 | 151,825 | ||||||
Micron Technology | 2,392 | 281,993 | ||||||
NetApp | 931 | 97,727 | ||||||
ON Semiconductor † | 1,302 | 95,762 | ||||||
Oracle | 2,217 | 278,477 | ||||||
Salesforce | 932 | 280,700 | ||||||
Western Digital † | 1,407 | 96,014 | ||||||
3,599,132 | ||||||||
Materials — 4.72% | ||||||||
Air Products and Chemicals | 604 | 146,331 | ||||||
Amcor | 12,495 | 118,827 | ||||||
AptarGroup | 692 | 99,572 | ||||||
CF Industries Holdings | 929 | 77,302 | ||||||
Corteva | 1,764 | 101,730 | ||||||
Dow | 4,205 | 243,596 | ||||||
DuPont de Nemours | 1,712 | 131,259 | ||||||
Freeport-McMoRan | 5,415 | 254,613 | ||||||
International Flavors & Fragrances | 1,313 | 112,905 | ||||||
LyondellBasell Industries Class A | 2,402 | 245,677 | ||||||
Newmont | 2,153 | 77,164 | ||||||
Sonoco Products | 1,606 | 92,891 | ||||||
United States Steel | 1,898 | 77,400 | ||||||
1,779,267 | ||||||||
Real Estate — 4.60% | ||||||||
AvalonBay Communities | 561 | 104,099 | ||||||
Brixmor Property Group | 4,273 | 100,202 |
7 |
Schedule of investments
Delaware Sustainable Equity Income Fund
Number of shares | Value (US $) | |||||||
Common Stocks (continued) | ||||||||
Real Estate (continued) | ||||||||
Digital Realty Trust | 1,114 | $ | 160,460 | |||||
Equinix | 130 | 107,293 | ||||||
Equity Residential | 1,643 | 103,690 | ||||||
Host Hotels & Resorts | 3,802 | 78,625 | ||||||
Iron Mountain | 2,097 | 168,200 | ||||||
Jones Lang LaSalle † | 330 | 64,380 | ||||||
Kilroy Realty | 2,961 | 107,869 | ||||||
Prologis | 2,376 | 309,403 | ||||||
Regency Centers | 1,403 | 84,966 | ||||||
Rexford Industrial Realty | 2,062 | 103,719 | ||||||
Simon Property Group | 1,036 | 162,124 | ||||||
UDR | 2,078 | 77,738 | ||||||
1,732,768 | ||||||||
Utilities — 4.36% | ||||||||
AES | 8,094 | 145,125 | ||||||
American Electric Power | 2,631 | 226,529 | ||||||
American Water Works | 1,055 | 128,932 | ||||||
Avangrid | 4,371 | 159,279 | ||||||
Brookfield Renewable Class A | 5,578 | 137,051 | ||||||
Edison International | 3,042 | 215,161 | ||||||
Entergy | 1,950 | 206,076 | ||||||
Eversource Energy | 2,526 | 150,979 | ||||||
Southern | 3,832 | 274,908 | ||||||
1,644,040 | ||||||||
Total Common Stocks (cost $29,423,580) | 37,387,446 | |||||||
Short-Term Investments — 0.29% | ||||||||
Money Market Mutual Funds — 0.29% | ||||||||
BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 5.20%) | 27,764 | 27,764 | ||||||
Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 5.21%) | 27,763 | 27,763 | ||||||
Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 5.34%) | 27,763 | 27,763 |
8 |
Number of shares | Value (US $) | |||||||
Short-Term Investments (continued) | ||||||||
Money Market Mutual Funds (continued) | ||||||||
Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 5.22%) | 27,764 | $ | 27,764 | |||||
Total Short-Term Investments (cost $111,054) | 111,054 | |||||||
Total Value of Securities—99.47% (cost $29,534,634) | $ | 37,498,500 |
† | Non-income producing security. |
Summary of abbreviations:
S&P – Standard & Poor’s Financial Services LLC
See accompanying notes, which are an integral part of the financial statements.
9 |
Statement of assets and liabilities
Delaware Sustainable Equity Income Fund | March 31, 2024 (Unaudited) |
Assets: | ||||
Investments, at value* | $ | 37,498,500 | ||
Cash | 16,015 | |||
Receivable for securities sold | 473,987 | |||
Prepaid expenses | 136,463 | |||
Receivable for fund shares sold | 60,590 | |||
Dividends receivable | 54,174 | |||
Receivable due from Advisor | 20,877 | |||
Foreign tax reclaims receivable | 929 | |||
Total Assets | 38,261,535 | |||
Liabilities: | ||||
Payable for fund shares redeemed | 382,860 | |||
Other accrued expenses | 106,020 | |||
Administration expenses payable to affiliates | 73,908 | |||
Distribution fees payable to affiliates | 1,377 | |||
Total Liabilities | 564,165 | |||
Total Net Assets | $ | 37,697,370 | ||
Net Assets Consist of: | ||||
Paid-in capital | $ | 28,052,744 | ||
Total distributable earnings (loss) | 9,644,626 | |||
Total Net Assets | $ | 37,697,370 |
10 |
Net Asset Value | |||||
Class A: | |||||
Net assets | $ | 5,406,396 | |||
Shares of beneficial interest outstanding, unlimited authorization, no par | 958,499 | ||||
Net asset value per share | $ | 5.64 | |||
Sales charge | 5.75 | % | |||
Offering price per share, equal to net asset value per share / (1 - sales charge) | $ | 5.98 | |||
Class I: | |||||
Net assets | $ | 32,199,728 | |||
Shares of beneficial interest outstanding, unlimited authorization, no par | 5,676,426 | ||||
Net asset value per share | $ | 5.67 | |||
Class R: | |||||
Net assets | $ | 43,495 | |||
Shares of beneficial interest outstanding, unlimited authorization, no par | 7,671 | ||||
Net asset value per share | $ | 5.67 | |||
Class R6: | |||||
Net assets | $ | 47,751 | |||
Shares of beneficial interest outstanding, unlimited authorization, no par | 8,160 | ||||
Net asset value per share | $ | 5.85 | |||
| |||||
* | Investments, at cost | $ | 29,534,634 |
See accompanying notes, which are an integral part of the financial statements.
11 |
Delaware Sustainable Equity Income Fund | Six months ended March 31, 2024 (Unaudited) |
Investment Income: | ||||
Dividends | $ | 653,328 | ||
Foreign tax withheld | (593 | ) | ||
652,735 | ||||
Expenses: | ||||
Management fees | 84,513 | |||
Distribution expenses — Class A | 9,532 | |||
Distribution expenses — Class R | 75 | |||
Registration fees | 96,767 | |||
Dividend disbursing and transfer agent fees and expenses | 32,255 | |||
Legal fees | 22,414 | |||
Accounting and administration expenses | 21,932 | |||
Custodian fees | 17,365 | |||
Audit and tax fees | 15,185 | |||
Reports and statements to shareholders expenses | 14,329 | |||
Trustees’ fees and expenses | 2,122 | |||
Other | 7,823 | |||
324,312 | ||||
Less expenses waived | (194,785 | ) | ||
Less expenses paid indirectly | (164 | ) | ||
Total operating expenses | 129,363 | |||
Net Investment Income (Loss) | 523,372 | |||
Net Realized and Unrealized Gain (Loss): | ||||
Net realized gain (loss) on investments | 3,034,471 | |||
Net change in unrealized appreciation (depreciation) on investments | 4,788,973 | |||
Net Realized and Unrealized Gain (Loss) | 7,823,444 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 8,346,816 |
See accompanying notes, which are an integral part of the financial statements.
12 |
Statements of changes in net assets
Delaware Sustainable Equity Income Fund
Six months ended 3/31/24 (Unaudited) | Year ended 9/30/23 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income (loss) | $ | 523,372 | $ | 2,150,466 | ||||
Net realized gain (loss) | 3,034,471 | 7,071,580 | ||||||
Net change in unrealized appreciation (depreciation) | 4,788,973 | 7,725,737 | ||||||
Net increase (decrease) in net assets resulting from operations | 8,346,816 | 16,947,783 | ||||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (883,899 | ) | (6,599,662 | ) | ||||
Class I | (4,696,786 | ) | (65,011,401 | ) | ||||
Class R | (2,661 | ) | (29,256 | ) | ||||
Class R6 | (4,823 | ) | (134,611 | ) | ||||
(5,588,169 | ) | (71,774,930 | ) | |||||
Capital Share Transactions (See Note 4): | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 331,079 | 5,093,461 | ||||||
Class I | 581,171 | 11,767,087 | ||||||
Class R | 18,035 | 103,251 | ||||||
Class R6 | 1,472 | 435,292 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 879,412 | 6,599,114 | ||||||
Class I | 4,695,572 | 63,255,481 | ||||||
Class R | 2,661 | 29,256 | ||||||
Class R6 | 4,823 | 134,611 | ||||||
6,514,225 | 87,417,553 |
13 |
Statements of changes in net assets
Delaware Sustainable Equity Income Fund
Six months ended 3/31/24 (Unaudited) | Year ended 9/30/23 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (4,627,645 | ) | $ | (6,853,922 | ) | ||
Class I | (23,566,693 | ) | (100,807,021 | ) | ||||
Class R | (58 | ) | (137,338 | ) | ||||
Class R6 | (144,223 | ) | (382,697 | ) | ||||
(28,338,619 | ) | (108,180,978 | ) | |||||
Decrease in net assets derived from capital share transactions | (21,824,394 | ) | (20,763,425 | ) | ||||
Net Decrease in Net Assets | (19,065,747 | ) | (75,590,572 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 56,763,117 | 132,353,689 | ||||||
End of period | $ | 37,697,370 | $ | 56,763,117 |
See accompanying notes, which are an integral part of the financial statements.
14 |
Delaware Sustainable Equity Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets5 |
Ratio of expenses to average net assets prior to fees waived5 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to the repositioning of the Fund. |
See accompanying notes, which are an integral part of the financial statements.
15 |
Six months ended 3/31/241 | Year ended | ||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | ||||||||||||||||||
$ | 5.32 | $ | 12.64 | $ | 14.84 | $ | 12.63 | $ | 12.66 | $ | 11.96 | ||||||||||||
0.05 | 0.14 | 0.25 | 0.25 | 0.24 | 0.21 | ||||||||||||||||||
0.93 | 1.52 | (1.17 | ) | 2.80 | 0.11 | 0.83 | |||||||||||||||||
0.98 | 1.66 | (0.92 | ) | 3.05 | 0.35 | 1.04 | |||||||||||||||||
(0.10 | ) | (0.17 | ) | (0.37 | ) | (0.26 | ) | (0.23 | ) | (0.22 | ) | ||||||||||||
(0.56 | ) | (8.81 | ) | (0.91 | ) | (0.58 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||
(0.66 | ) | (8.98 | ) | (1.28 | ) | (0.84 | ) | (0.38 | ) | (0.34 | ) | ||||||||||||
$ | 5.64 | $ | 5.32 | $ | 12.64 | $ | 14.84 | $ | 12.63 | $ | 12.66 | ||||||||||||
19.51 | % | 12.56 | % | (7.48 | %) | 24.85 | % | 2.88 | % | 9.04 | % | ||||||||||||
$ | 5,406 | $ | 8,416 | $ | 9,035 | $ | 4 | 4 | $ | 4 | 4 | $ | 3 | 4 | |||||||||
0.74 | % | 0.74 | % | 0.74 | % | 0.74 | % | 0.74 | % | 0.75 | % | ||||||||||||
1.55 | % | 0.97 | % | 0.93 | % | 0.88 | % | 0.84 | % | 0.89 | % | ||||||||||||
1.97 | % | 2.24 | % | 1.73 | % | 1.75 | % | 2.01 | % | 1.79 | % | ||||||||||||
1.16 | % | 2.01 | % | 1.54 | % | 1.61 | % | 1.91 | % | 1.65 | % | ||||||||||||
21 | % | 160 | % | 94 | %6 | 29 | % | 40 | % | 28 | % |
16 |
Financial highlights
Delaware Sustainable Equity Income Fund Class I
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets5 |
Ratio of expenses to average net assets prior to fees waived5 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
4 | Net assets reported in millions. |
5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
6 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to the repositioning of the Fund. |
See accompanying notes, which are an integral part of the financial statements.
17 |
Six months ended 3/31/241 | Year ended | ||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | ||||||||||||||||||
$ | 5.34 | $ | 12.66 | $ | 14.83 | $ | 12.63 | $ | 12.67 | $ | 11.96 | ||||||||||||
0.06 | 0.17 | 0.27 | 0.29 | 0.27 | 0.24 | ||||||||||||||||||
0.94 | 1.50 | (1.15 | ) | 2.78 | 0.10 | 0.84 | |||||||||||||||||
1.00 | 1.67 | (0.88 | ) | 3.07 | 0.37 | 1.08 | |||||||||||||||||
(0.11 | ) | (0.18 | ) | (0.38 | ) | (0.29 | ) | (0.26 | ) | (0.25 | ) | ||||||||||||
(0.56 | ) | (8.81 | ) | (0.91 | ) | (0.58 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||
(0.67 | ) | (8.99 | ) | (1.29 | ) | (0.87 | ) | (0.41 | ) | (0.37 | ) | ||||||||||||
$ | 5.67 | $ | 5.34 | $ | 12.66 | $ | 14.83 | $ | 12.63 | $ | 12.67 | ||||||||||||
19.80 | % | 12.73 | % | (7.18 | %) | 25.05 | % | 3.07 | % | 9.39 | % | ||||||||||||
$ | 32,200 | $ | 48,144 | $ | 123,164 | $ | 334 | 4 | $ | 297 | 4 | $ | 301 | 4 | |||||||||
0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
1.30 | % | 0.70 | % | 0.68 | % | 0.64 | % | 0.64 | % | 0.69 | % | ||||||||||||
2.21 | % | 2.49 | % | 1.85 | % | 2.00 | % | 2.21 | % | 2.04 | % | ||||||||||||
1.41 | % | 2.29 | % | 1.67 | % | 1.86 | % | 2.07 | % | 1.85 | % | ||||||||||||
21 | % | 160 | % | 94 | %6 | 29 | % | 40 | % | 28 | % |
18 |
Financial highlights
Delaware Sustainable Equity Income Fund Class R
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets7 |
Ratio of expenses to average net assets prior to fees waived7 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
4 | Total return during the period presented reflects waivers by the manager and/or distributor (as applicable). Performance would have been lower had the waivers not been in effect. |
5 | Net assets reported in millions. |
6 | Rounds to less than $500 thousands. |
7 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
8 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to the repositioning of the Fund. |
See accompanying notes, which are an integral part of the financial statements.
19 |
Six months ended 3/31/241 | Year ended | ||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | ||||||||||||||||||
$ | 5.35 | $ | 12.64 | $ | 14.85 | $ | 12.62 | $ | 12.65 | $ | 11.95 | ||||||||||||
0.05 | 0.12 | 0.17 | 0.17 | 0.19 | 0.15 | ||||||||||||||||||
0.92 | 1.51 | (1.15 | ) | 2.79 | 0.10 | 0.83 | |||||||||||||||||
0.97 | 1.63 | (0.98 | ) | 2.96 | 0.29 | 0.98 | |||||||||||||||||
(0.09 | ) | (0.11 | ) | (0.32 | ) | (0.15 | ) | (0.17 | ) | (0.16 | ) | ||||||||||||
(0.56 | ) | (8.81 | ) | (0.91 | ) | (0.58 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||
(0.65 | ) | (8.92 | ) | (1.23 | ) | (0.73 | ) | (0.32 | ) | (0.28 | ) | ||||||||||||
$ | 5.67 | $ | 5.35 | $ | 12.64 | $ | 14.85 | $ | 12.62 | $ | 12.65 | ||||||||||||
19.26 | %4 | 12.08 | %4 | (7.87 | %)4 | 24.14 | % | 2.37 | % | 8.50 | %4 | ||||||||||||
$ | 43 | $ | 20 | $ | 46 | $ | — | 5,6 | $ | 1 | 5 | $ | 1 | 5 | |||||||||
1.11 | % | 1.22 | % | 1.22 | % | 1.24 | % | 1.19 | % | 1.26 | % | ||||||||||||
1.86 | % | 1.27 | % | 1.28 | % | 1.24 | % | 1.19 | % | 1.28 | % | ||||||||||||
1.60 | % | 1.82 | % | 1.18 | % | 1.22 | % | 1.53 | % | 1.28 | % | ||||||||||||
0.85 | % | 1.77 | % | 1.12 | % | 1.22 | % | 1.53 | % | 1.26 | % | ||||||||||||
21 | % | 160 | % | 94 | %8 | 29 | % | 40 | % | 28 | % |
20 |
Financial highlights
Delaware Sustainable Equity Income Fund Class R6
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets6 |
Ratio of expenses to average net assets prior to fees waived6 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Calculated using average shares outstanding. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
4 | Total return during the period presented reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
5 | Net assets reported in millions. |
6 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
7 | The Fund’s portfolio turnover rate increased substantially during the year ended September 30, 2022 due to the repositioning of the Fund. |
See accompanying notes, which are an integral part of the financial statements.
21 |
Six months ended 3/31/241 | Year ended | ||||||||||||||||||||||
(Unaudited) | 9/30/23 | 9/30/22 | 9/30/21 | 9/30/20 | 9/30/19 | ||||||||||||||||||
$ | 5.49 | $ | 12.79 | $ | 14.84 | $ | 12.63 | $ | 12.67 | $ | 11.96 | ||||||||||||
0.07 | 0.16 | 0.28 | 0.29 | 0.27 | 0.24 | ||||||||||||||||||
0.95 | 1.54 | (1.17 | ) | 2.79 | 0.10 | 0.84 | |||||||||||||||||
1.02 | 1.70 | (0.89 | ) | 3.08 | 0.37 | 1.08 | |||||||||||||||||
(0.10 | ) | (0.19 | ) | (0.25 | ) | (0.29 | ) | (0.26 | ) | (0.25 | ) | ||||||||||||
(0.56 | ) | (8.81 | ) | (0.91 | ) | (0.58 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||
(0.66 | ) | (9.00 | ) | (1.16 | ) | (0.87 | ) | (0.41 | ) | (0.37 | ) | ||||||||||||
$ | 5.85 | $ | 5.49 | $ | 12.79 | $ | 14.84 | $ | 12.63 | $ | 12.67 | ||||||||||||
19.72 | %4 | 12.90 | %4 | (7.21 | %)4 | 25.16 | % | 3.07 | % | 9.40 | %4 | ||||||||||||
$ | 48 | $ | 183 | $ | 109 | $ | 70 | 5 | $ | 80 | 5 | $ | 86 | 5 | |||||||||
0.46 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | 0.50 | % | ||||||||||||
1.15 | % | 0.70 | % | 0.52 | % | 0.48 | % | 0.50 | % | 0.53 | % | ||||||||||||
2.25 | % | 2.55 | % | 1.86 | % | 2.02 | % | 2.24 | % | 2.03 | % | ||||||||||||
1.56 | % | 2.33 | % | 1.82 | % | 2.02 | % | 2.24 | % | 2.00 | % | ||||||||||||
21 | % | 160 | % | 94 | %7 | 29 | % | 40 | % | 28 | % |
22 |
Delaware Sustainable Equity Income Fund | March 31, 2024 (Unaudited) |
Ivy Funds (Trust) is organized as a Delaware statutory trust and offers 30 funds. These financial statements and the related notes pertain to Delaware Sustainable Equity Income Fund. The Trust is an open-end investment company. The Fund is considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offers Class A, Class I, Class R and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.75%. There is no front-end sales charge when you purchase $1 million or more of Class A shares. However, if Delaware Distributors, L.P. (DDLP) paid your financial intermediary a commission on your purchase of $1 million or more of Class A shares, you will have to pay a limited contingent deferred sales charge (Limited CDSC) of 1.00% if you redeem these shares within the first 18 months after your purchase, unless a specific waiver of the Limited CDSC applies. Class I, Class R and Class R6 shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries.
1. Significant Accounting Policies
The Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services — Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Fund.
Security Valuation — Equity securities and exchange-traded funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security or ETF does not trade, the mean between the bid and the ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. Open-end investment companies, other than ETFs, are valued at their published net asset value (NAV). Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by Delaware Management Company (DMC). Subject to the oversight of the Trust’s Board of Trustees (Board), DMC, as valuation designee, has adopted policies and procedures to fair value securities for which market quotations are not readily available consistent with the requirements of Rule 2a-5 under the 1940 Act. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities and private placements are valued at fair value.
Federal Income Taxes — No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to
23 |
be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken or expected to be taken on the Fund’s federal income tax returns through the six months ended March 31, 2024, and for all open tax years (years ended September 30, 2020–September 30, 2023), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. If applicable, the Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statement of operations.” During the six months ended March 31, 2024, the Fund did not incur any interest or tax penalties.
Class Accounting — Investment income, common expenses, and realized and unrealized gain (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class. Class R6 shares will not be allocated any expenses related to service fees, sub-accounting fees, and/or sub-transfer agency fees paid to brokers, dealers, or other financial intermediaries.
Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other — Expenses directly attributable to the Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Funds by Macquarie® (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Income and capital gain distributions from any investment companies (Underlying Funds) in which the Fund invests are recorded on the ex-dividend date. Distributions received from investments in real estate investment trusts are recorded as dividend income on the ex-dividend date, which are estimated, subject to reclassification upon notice of the character of such distributions by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends have been recorded in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. The Fund declares and pays dividends from net investment income and distributions from net realized gain on investments, if any, at least annually. The Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
24 |
Notes to financial statements
Delaware Sustainable Equity Income Fund
1. Significant Accounting Policies (continued)
The Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.”
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its investment management agreement, the Fund pays DMC, a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly at the rates of 0.35% of net assets up to $1 billion, 0.33% of net assets over $1 billion and up to $2 billion, 0.31% of net assets over $2 billion and up to $5 billion, and 0.30% of net assets over $5 billion.
Effective January 29, 2024, DMC has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any distribution and service (12b-1) fees, 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 0.49% of the Fund’s average daily net assets for all share classes other than Class R6, and 0.38% of the Fund’s Class R6 shares’ average daily net assets through January 28, 2025. These waivers and reimbursements may only be terminated by agreement of DMC and the Fund. The waivers and reimbursements are accrued daily and received monthly.
After consideration of class specific expenses, including 12b-1 fees, the class level operating expense limitation as a percentage of average daily net assets from October 1, 2023 (except as noted) through January 28, 2025, unless terminated by agreement of DMC and the Fund, is as follows:
Operating expense limitation as a percentage of average daily net assets | |||||||
Class A | Class I | Class R | Class R6 | ||||
0.74% | 0.49%* | 0.99%* | 0.38%* |
* | Effective January 29, 2024. Prior to January 29, 2024 were as follows for Class A, Class I, Class R, and Class R6 shares, respectively: 0.74%, 0.50%, 1.22% , and 0.48%. |
DMC may seek investment advice and recommendations from its affiliate, Macquarie Investment Management Global Limited (MIMGL). DMC may also permit MIMGL to execute Fund security trades on behalf of DMC and exercise investment discretion for securities in certain markets where DMC believes it will be beneficial to utilize MIMGL’s specialized market knowledge. For these services, DMC, not the Fund, pays MIMGL a portion of its investment management fee.
25 |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to the Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.0050% of the first $60 billion; 0.00475% of the next $30 billion; and 0.0015% of aggregate average daily net assets in excess of $90 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative NAV basis. This amount is included on the “Statement of operations” under “Accounting and administration expenses.” For the six months ended March 31, 2024, the Fund paid $3,010 for these services.
DIFSC is also the transfer agent and dividend disbursing agent of the Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; 0.004% of the next $20 billion; 0.002% of the next $25 billion; and 0.0015% of average daily net assets in excess of $75 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. This amount is included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended March 31, 2024, the Fund paid $1,597 for these services. Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to the Fund. Sub-transfer agency fees are paid by the Fund and are also included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, the Fund pays DDLP, the distributor and an affiliate of DMC, an annual 12b-1 fee of 0.25% and 0.50% of the average daily net assets of the Class A and Class R shares, respectively. The fees are calculated daily and paid monthly. Class I and Class R6 shares do not pay 12b-1 fees.
As provided in the investment management agreement, the Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal and regulatory reporting services to the Fund. For the six months ended March 31, 2024, the Fund paid $2,367 for internal legal and regulatory reporting services provided by DMC and/or its affiliates’ employees. This amount is included on the “Statement of operations” under “Legal fees.”
For the six months ended March 31, 2024, DDLP earned $922 for commissions on sales of the Fund’s Class A shares. For the six months ended March 31, 2024, DDLP received gross CDSC commissions of $350 on redemptions of the Fund’s Class A shares and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares.
26 |
Notes to financial statements
Delaware Sustainable Equity Income Fund
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Trustees’ fees include expenses accrued by the Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Fund.
In addition to the management fees and other expenses of the Fund, the Fund indirectly bears the investment management fees and other expenses of any Underlying Funds, including ETFs, in which it invests. The amount of these fees and expenses incurred indirectly by the Fund will vary based upon the expense and fee levels of any Underlying Funds and the number of shares that are owned of any Underlying Funds at different times.
3. Investments
For the six months ended March 31, 2024, the Fund made purchases and sales of investment securities other than short-term investments and US government securities as follows:
Purchases | $ | 9,908,237 | ||
Sales | 36,993,182 |
At March 31, 2024, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At March 31, 2024, the cost and unrealized appreciation (depreciation) of investments for the Fund were as follows:
Cost of investments | $ | 29,534,634 | ||
Aggregate unrealized appreciation of investments | $ | 8,580,191 | ||
Aggregate unrealized depreciation of investments | (616,325 | ) | ||
Net unrealized appreciation of investments | $ | 7,963,866 |
US GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The Fund’s
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investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, forward foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) |
Level 3 – | Significant unobservable inputs, including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of March 31, 2024:
Level 1 | ||||
Securities | ||||
Assets: | ||||
Common Stocks | $ | 37,387,446 | ||
Short-Term Investments | 111,054 | |||
Total Value of Securities | $ | 37,498,500 |
During the six months ended March 31, 2024, there were no transfers into or out of Level 3 investments. The Fund’s policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning or end of the period in relation to the Fund’s net assets. As of March 31, 2024, there were no Level 3 investments.
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Notes to financial statements
Delaware Sustainable Equity Income Fund
4. Capital Shares
Transactions in capital shares were as follows:
Six months ended 3/31/24 | Year ended 9/30/23 | |||||||
Shares sold: | ||||||||
Class A | 62,617 | 702,678 | ||||||
Class I | 108,244 | 1,204,061 | ||||||
Class R | 3,440 | 7,119 | ||||||
Class R6 | 266 | 65,608 | ||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 168,980 | 1,211,368 | ||||||
Class I | 896,481 | 11,569,846 | ||||||
Class R | 505 | 5,361 | ||||||
Class R6 | 891 | 24,013 | ||||||
1,241,424 | 14,790,054 | |||||||
Shares redeemed: | ||||||||
Class A | (855,726 | ) | (1,046,303 | ) | ||||
Class I | (4,336,450 | ) | (13,497,146 | ) | ||||
Class R | (11 | ) | (12,406 | ) | ||||
Class R6 | (26,351 | ) | (64,781 | ) | ||||
(5,218,538 | ) | (14,620,636 | ) | |||||
Net increase (decrease) | (3,977,114 | ) | 169,418 |
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included in shares sold and shares redeemed in the tables above and on the “Statements of changes in net assets.” The Fund did not have exchange transactions for the six months ended March 31, 2024. For the year ended September 30, 2023, the Fund had the following exchange transactions:
Exchange Redemptions | Exchange Subscriptions | |||||||||||
Class A Shares | Class I Shares | Value | ||||||||||
Year ended | ||||||||||||
9/30/23 | 5,949 | 5,918 | $ | 33,972 |
5. Line of Credit
The Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $355,000,000 revolving line of credit (Agreement) intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the Agreement, the Participants were charged an annual commitment fee of
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0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum of one-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on October 30, 2023.
On October 30, 2023, the Fund, along with the other Participants, entered into an amendment to the Agreement for a $335,000,000 revolving line of credit to be used as described above. It operates in substantially the same manner as the original Agreement. Under the amendment to the Agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants based on a weighted average of the respective net assets of each Participant. The line of credit available under the Agreement expires on October 28, 2024.
The Fund had no amounts outstanding as of March 31, 2024, or at any time during the period then ended.
6. Interfund Lending Program
Pursuant to an exemptive order issued by the SEC (Order), the Ivy Funds and Ivy Variable Insurance Portfolios (collectively, the Funds, only for purposes of this Note 6) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (Interfund Lending Program). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each, an Interfund Loan), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. This program is in existence but is not currently in use. The Funds made no Interfund Loans under the Interfund Lending Program during the six months ended March 31, 2024.
7. Securities Lending
The Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the
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Notes to financial statements
Delaware Sustainable Equity Income Fund
7. Securities Lending (continued)
applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day, may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by the Fund is generally invested in an individual separate account. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; certain money market funds; and asset-backed securities. The Fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Fund, the security lending agent, and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower.
The Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of the Fund’s cash collateral account may be less than the amount the Fund would be required to return to the borrowers of the securities and the Fund would be required to make up for this shortfall.
At March 31, 2024, the Fund had no securities out on loan.
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8. Credit and Market Risks
The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen.
Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which the Fund invests will cause the NAV of the Fund to fluctuate.
The Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 15% limit on investments in illiquid securities. As of March 31, 2024, there were no Rule 144A securities held by the Fund.
9. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
10. Subsequent Events
On January 16, 2024, the Board unanimously voted to approve a proposal to liquidate and dissolve the Fund. The liquidation and dissolution occurred on April 19, 2024.
Management has determined that no other material events or transactions occurred subsequent to March 31, 2024, that would require recognition or disclosure in the Fund’s financial statements.
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Other Fund information (Unaudited)
Delaware Sustainable Equity Income Fund
Form N-PORT and proxy voting information
The Delaware Funds file complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT. The Form N-PORT, as well as a description of the policies and procedures that a Fund uses to determine how to vote proxies (if any) relating to portfolio securities, is available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that a Fund uses to determine how to vote proxies (if any) relating to portfolio securities and the Schedule of Investments included in the Fund’s most recent Form N-PORT are available without charge on the Fund’s website at delawarefunds.com/literature.
Information (if any) regarding how a Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Fund’s website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
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Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures.
The registrant’s principal executive officer and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b)
under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)) and provide reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Recovery of Erroneously Awarded Compensation
Not applicable.
Item 14. Exhibits
(a) | (1) Code of Ethics |
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
IVY FUNDS
/s/SHAWN K. LYTLE | ||
By: | Shawn K. Lytle | |
Title: | President and Chief Executive Officer | |
Date: | June 3, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/SHAWN K. LYTLE | ||
By: | Shawn K. Lytle | |
Title: | President and Chief Executive Officer | |
Date: | June 3, 2024 |
/s/RICHARD SALUS | ||
By: | Richard Salus | |
Title: | Chief Financial Officer | |
Date: | June 3, 2024 |