Macquarie VIP Limited-Term Bond Series

Macquarie VIP Limited-Term Bond Series(formerly, Delaware Ivy VIP Limited-Term Bond)

Key features

A flexible short-term bond fund designed with the goal of weathering market cycles

An actively managed bond portfolio emphasizing risk mitigation and liquidity

Experienced management team with a long history of managing short-term portfolios

Daily pricing as of 11/20/2024

NAV
$4.67
NAV 1-day net change
-0.01
Max offer price
$4.67

Total net assets as of 10/31/2024

All share classes
$173.0 million

Overview

Series information
Inception date 08/23/2010
Dividends paid (if any) Annual
Series identifiers
CUSIP 46600H687

Benchmark

Bloomberg 1-3 Year US Government/Credit 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 (10/31/2024)

Returns for less than one year are not annualized.

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 (09/30/2024)

Returns for less than one year are not annualized.

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

Expense ratio

Gross
0.86%
Net
0.79%

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.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2023
4.73%
2022
-4.20%
2021
-0.49%
2020
4.14%
2019
4.23%
2018
0.78%
2017
1.40%
2016
1.94%
2015
0.87%
2014
0.98%

Portfolio

Portfolio characteristics as of 10/31/2024

Number of holdings
164
Portfolio turnover (last fiscal year)
143%
Effective duration (weighted average) (view definition)
1.97 years
Effective maturity (weighted average) (view definition)
2.25 years
SEC 30-day yield with waiver (view definition)
3.96%
SEC 30-day yield without waiver (view definition)
3.94%
Annualized standard deviation, 3 years (view definition)
2.72

Portfolio composition as of 10/31/2024
Total may not equal 100% due to rounding.

Credits
33.2%
U.S. government securities/Short term
31.1%
Asset-backed securities
25.5%
Mortgage-backed securities
7.3%
Commercial mortgage-backed securities
3.0%

Top 10 fixed income holdings as of 10/31/2024

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
TREASURY NOTE
7.42
TREASURY NOTE
5.51
TREASURY NOTE
3.34
TREASURY NOTE
2.94
TREASURY NOTE
2.89
TREASURY NOTE
2.85
TREASURY NOTE
2.04
TREASURY NOTE
1.38
GENERAL MOTORS 23-1
1.31
JPMORGAN CHASE & CO
1.29

Total % Portfolio in Top 10 holdings - 30.97%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 10/31/2024

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

Sector
% of portfolio
Sector
% of portfolio
Investment grade corporates
30.2%
U.S. Treasury securities
29.1%
Asset-backed securities/CLO
25.5%
RMBS
7.3%
Commercial mortgage-backed securities
3.0%
High yield corporates
1.5%
Emerging markets
1.4%

Credit quality as of 10/31/2024

Rating
Series
Rating
Series
AAA
26.4%
AA
38.1%
A
14.4%
BBB
17.4%
BB
1.1%
B
0.6%
Not rated
2.0%

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

Janaki Rao

Janaki Rao 

  • Managing Director, Head of US Multisector
  • Start date on the Fund: May 2024
  • Years of industry experience: 31
  • Read bio
Andrew Vonthethoff

Andrew Vonthethoff, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: May 2024
  • Years of industry experience: 17
  • Read bio

Fees

Annual portfolio operating expenses
Management fees 0.50%
Distribution and service (12b-1) fees 0.25%
Other expenses 0.11%
Total annual series operating expenses 0.86%
Fee waivers and expense reimbursements1 (0.07%)
Total annual series operating expenses after fee waivers and expense reimbursements 0.79%

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.

Resources

Significant Fund Event

On May 6, 2024, the portfolio management responsibilities of the Series changed, and Janaki Rao and Andrew Vonthethoff now serve as portfolio managers of the Series.

Effective May 1, 2024, Class II was renamed Service Class.

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

Investing involves risk, including the possible loss of principal.

The prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. An issuer of a fixed income security may be unable to make interest payments and/or repay principal in a timely manner. The principal on a fixed income security may be prepaid prior to maturity, which may require reinvestment at a lower interest rate. High yield securities (“junk bonds”) are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than higher-rated securities.

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

If and when the Series invests in forward foreign currency contracts or use other investments to hedge against currency risks, the Series will be subject to special risks, including counterparty risk.

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.

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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