Macquarie VIP Investment Grade Series

Macquarie VIP Investment Grade Series(formerly, Delaware VIP® Investment Grade Series)

Key features

A high-quality, research-driven corporate bond fund designed for long-term growth

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

An experienced management team and a time-tested process and philosophy

Daily pricing as of 07/19/2024

NAV
$8.42
NAV 1-day net change
-0.02
Max offer price
$8.42

Total net assets as of 06/30/2024

All share classes
$33.9 million

Overview

Series information
Inception date 10/31/2019
Dividends paid (if any) Annual
Capital gains paid (if any) Annually
Series identifiers
CUSIP 246493381

Benchmark

Bloomberg US Corporate Bond Index (view definition)

Performance

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Total returns may reflect waivers and/or expense reimbursements by the manager and/or distributor (as applicable) for some or all of the periods shown. Performance would have been lower without such waivers and reimbursements.

Average annual total return as of month-end (06/30/2024)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the Series' inception date.

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

Average annual total return as of quarter-end (06/30/2024)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the Series' inception date.

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

Expense ratio

Gross
1.15%
Net
0.93%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from May 1, 2024 through April 30, 2025. Please see the fee table in the Series' prospectus for more information.

The performance and expense ratio information shown represent the performance and fees as they relate to actual shares of the Series. These examples do not include any fees or sales charges imposed by the variable insurance contract for which the Series is an investment option. If they were included, your costs would be higher and performance would be lower. Investors should consult the contract prospectus or disclosure documents for more information.

Portfolio

Portfolio characteristics as of 06/30/2024

Number of holdings
219
Portfolio turnover (last fiscal year)
93%
Effective duration (weighted average) (view definition)
6.87 years
Effective maturity (weighted average) (view definition)
11.53 years
SEC 30-day yield with waiver (view definition)
4.81%
SEC 30-day yield without waiver (view definition)
4.49%
Annualized standard deviation, 3 years (view definition)
9.36

Portfolio composition as of 06/30/2024
Total may not equal 100% due to rounding.

Credits
98.5%
Other
1.2%
U.S. government securities
0.3%

Top 10 fixed income holdings as of 06/30/2024

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
TRUIST BANK
1.28
VISTRA OPERATIONS COMPANY LLC
1.23
BANK OF AMERICA CORP
1.22
FYBR_24-1
1.18
CDW LLC / CDW FINANCE CORP
1.17
ENERGY TRANSFER LP
1.12
FREEPORT-MCMORAN COPPER & GOLD INC
1.09
ASHTEAD CAPITAL INC
1.08
BANK OF NEW YORK MELLON/THE
1.02
BOEING CO
1.01

Total % Portfolio in Top 10 holdings - 11.40%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 06/30/2024

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

Sector
% of portfolio
Sector
% of portfolio
Financial institutions
35.3%
Utility
13.1%
Energy
11.7%
Consumer noncyclical
8.8%
Capital goods
7.8%
Communications
6.8%
Consumer cyclical
6.7%
Technology
5.0%
Basic industry
2.6%
Transportation
0.4%
Noncorporate
0.3%
Other
1.2%

Credit quality as of 06/30/2024

Rating
Series
Rating
Series
AAA
1.6%
AA
1.8%
A
27.2%
BBB
61.4%
BB
7.2%
CCC
0.3%
Not rated
0.5%

Total may not equal 100% due to rounding. The Series' investment manager, Delaware Management Company (DMC) receives “Credit Quality” ratings for the underlying securities held by the Fund from three “nationally recognized statistical rating organizations” (NRSROs) — Standard & Poor’s (S&P), Moody’s Investors Service, and Fitch, Inc. The credit quality breakdown is calculated by DMC based on the NSRO ratings and the index credit quality rules. For securities rated by an NRSRO other than S&P, that rating is converted to the equivalent S&P credit rating. Securities that are unrated by any of the three NRSROs are included in the “not rated” category when applicable. Unrated securities do not necessarily indicate low quality. More information about securities ratings is contained in the Series' Statement of Additional Information.

Management

Michael Wildstein

Michael G. Wildstein, CFA

  • Senior Managing Director, Head of US Credit and Insurance
  • Start date on the Fund: October 2019
  • Years of industry experience: 22
  • Read bio
Kashif Ishaq

Kashif Ishaq 

  • Managing Director, Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 22
  • Read bio

Fees

Annual portfolio operating expenses
Management fees 0.50%
Distribution and service (12b-1) fees 0.30%
Other expenses 0.35%
Total annual series operating expenses 1.15%
Fee waivers and expense reimbursements1 (0.22%)
Total annual series operating expenses after fee waivers and expense reimbursements 0.93%

Please see the prospectus and SAI for additional information.

1Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from May 1, 2024 through April 30, 2025. Please see the fee table in the Series' prospectus for more information.

1The Series’ investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual series operating expenses from exceeding 0.93% of the Series’ average daily net assets from April 30, 2021 through April 30, 2022. These waivers and reimbursements may only be terminated by agreement of the Manager and the Series.

Resources

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

Carefully consider the Series' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Series' prospectus and its summary prospectus, which may be obtained by visiting delawarefunds.com/vip-literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

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

High yield securities (“junk bonds”) are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than higher-rated securities.

Mortgage-backed securities (MBS) and asset-backed securities (ABS) are subject to credit risk and interest rate risk and may also be subject to prepayment risk and extension risk. In addition, MBS and ABS may decline in value, become more volatile, face difficulties in valuation, or experience reduced liquidity due to changes in interest rates or general economic conditions. Certain MBS, such as collateralized mortgage obligations, real estate mortgage investment conduits, and stripped MBS may be more susceptible to these risks than other MBS.

The principal on a fixed income security may be prepaid prior to maturity, which may require reinvestment at a lower interest rate.

The Series may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Series' investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Series from executing advantageous investment decisions in a timely manner and could negatively impact the Series' ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Series.

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

Macquarie VIP Funds are not available for direct investment except for issuers of variable insurance product contracts. They are available only through the purchase of certain variable insurance products.

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

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