Macquarie Core Plus Bond Portfolio (formerly, The Core Plus Fixed Income Portfolio)


Macquarie Core Plus Bond Portfolio seeks maximum long-term total return, consistent with reasonable risk.


The Portfolio allocates its investments principally among the following three sectors of the fixed income securities markets: the US investment grade sector, the US high yield sector, and the international sector. Under normal circumstances, the Portfolio will invest at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities (80% Policy). The Portfolio’s 80% Policy may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change.

The Manager will determine how much of the Portfolio to allocate to each of the three sectors, based on its evaluation of economic and market conditions and its assessment of the returns and potential for appreciation that can be achieved from investments in each of the three sectors. The Manager will periodically reallocate the Portfolio’s assets, as deemed necessary. The relative proportion of the Portfolio’s assets to be allocated among sectors is described below.

  • US investment grade sector Under normal circumstances, between 50% and 100% of the Portfolio’s total assets will be invested in the US investment grade sector. In managing the Portfolio’s assets allocated to the US investment grade sector, the Manager will invest principally in debt obligations issued or guaranteed by the US government, its agencies, or instrumentalities, and by US corporations. The corporate debt obligations in which the Portfolio may invest include bonds, notes, debentures, and commercial paper of US companies. The US government securities in which the Portfolio may invest include a variety of securities that are issued or guaranteed as to the payment of principal and interest by the US government, and by various agencies or instrumentalities that have been established or sponsored by the US government.

    The US investment grade sector of the Portfolio’s assets may also be invested in mortgage-backed securities (MBS) issued or guaranteed by the US government, its agencies, or instrumentalities or by government-sponsored corporations. Other MBS in which the Portfolio may invest are issued by certain private, nongovernment entities. Subject to the quality limitations, the Portfolio may also invest in securities that are backed by assets such as receivables on home equity and credit card loans, automobile, mobile home, recreational vehicle, and other loans, wholesale dealer floor plans, and leases.

    Securities purchased by the Portfolio within this sector will be rated in one of the four highest rating categories or will be unrated securities that the Manager determines are of comparable quality.

  • US high yield sector Under normal circumstances, up to 30% of the Portfolio’s total assets will be allocated to the high yield sector. The Manager will invest the Portfolio’s assets that are allocated to the high yield sector primarily in those securities having a liberal and consistent yield and those tending to reduce the risk of market fluctuations. The Portfolio may invest in corporate debt obligations, including, notes, which may be convertible or nonconvertible, commercial paper, units consisting of bonds with stock or warrants to buy stock attached, debentures, convertible debentures, zero-coupon bonds, and PIK securities.

    The Portfolio will invest in both rated and unrated bonds. The rated bonds that the Portfolio may purchase in this sector will generally be rated lower than BBB- by S&P, Baa3 by Moody’s, or similarly rated by another NRSRO.

  • International sector The Portfolio may invest up to 30% of its total assets in the international sector. The international sector invests primarily in fixed income securities of issuers organized or having a majority of their assets or deriving a majority of their operating income in foreign countries. These fixed income securities include foreign government securities, debt obligations of foreign companies, and securities issued by supranational entities. A supranational entity is an entity established or financially supported by the national governments of one or more countries to promote reconstruction or development. Examples of supranational entities include, among others, the International Bank for Reconstruction and Development (more commonly known as the World Bank), the European Economic Community, the European Investment Bank, the Inter-American Development Bank, and the Asian Development Bank.

    The Portfolio may invest in securities issued in any currency and may hold foreign currencies. Securities of issuers within a given country may be denominated in the currency of another country or in multinational currency units, such as the euro. The Portfolio may, from time to time, purchase or sell foreign currencies and/or engage in forward foreign currency transactions in order to expedite settlement of Portfolio transactions and to minimize currency value fluctuations. Currency considerations carry a special risk for the Portfolio to the extent that it allocates a significant portion of its assets to foreign securities.

    The Portfolio will invest in both rated and unrated foreign securities. It may purchase securities of issuers in any foreign country, developed and underdeveloped. These investments may include direct obligations of issuers located in emerging markets countries.

The Portfolio’s total non-US dollar currency exposure will be limited, in aggregate, to no more than 10% of net assets, and the Portfolio’s investments in emerging markets securities will be limited to no more than 15% of the Portfolio’s net assets.

The Portfolio may hold a substantial portion of its assets in cash or short-term fixed income obligations in unusual market conditions to meet redemption requests, for temporary defensive purposes, and pending investment. The Portfolio may also use a wide range of derivative instruments, typically including options, futures contracts, options on futures contracts, and swaps. The Portfolio will use derivatives for both hedging and nonhedging purposes. For example, the Portfolio may invest in: futures and options to manage duration and for defensive purposes, such as to protect gains or hedge against potential losses in the portfolio without actually selling a security, or to stay fully invested; forward foreign currency contracts to manage foreign currency exposure; interest rate swaps to neutralize the impact of interest rate changes; credit default swaps to hedge against bond defaults, to manage credit exposure or to enhance total return; and index swaps to enhance return or to effect diversification. The Portfolio will not use derivatives for reasons inconsistent with its investment objective.

    Portfolio information
    Inception date06/28/2002
    Dividends paid (if any)Annually
    Capital gains paid (if any)December
    Portfolio identifiers
    Investment minimums
    Initial investment**$1,000,000
    Subsequent InvestmentsNo minimum

    **In the aggregate across all Portfolios of the Delaware Pooled Trust.

    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 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 (01/31/2018)

    as of quarter-end (12/31/2017)

    YTD1 year3 year5 year10 yearLifetimeInception date
    NAV (view definition)-0.30%4.19%1.67%2.45%5.10%5.55%06/28/2002
    Bloomberg Barclays US Aggregate Index-1.15%2.15%1.14%2.01%3.71%n/a
    1 year3 year5 year10 yearLifetimeInception date
    NAV (view definition)0.48%4.91%2.53%2.45%5.30%5.60%06/28/2002
    Bloomberg Barclays US Aggregate Index0.39%3.54%2.24%2.10%4.01%n/a

    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

    Net expense ratio reflects contractual waivers and/or expense reimbursements from Feb. 28, 2017 to Feb. 28, 2018. Please see the fee table in the Portfolio's prospectus for more information.

    Quarterly total returns @ NAV
    Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
    Portfolio characteristics - as of 01/31/2018
    Number of holdings1,009
    Effective maturity (weighted average) (view definition)8.17 years
    Effective duration (weighted average) (view definition)4.71 years
    Annualized standard deviation, 3 years (view definition)2.42
    SEC 30-day yield with waiver (view definition)n/a
    SEC 30-day yield without waiver (view definition)n/a
    Portfolio turnover (last fiscal year)162%
    Top 10 fixed income holdings as of 01/31/2018

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

    List excludes cash and cash equivalents.

    Holding% of portfolio
    FNCL 4.5 3/182.74%
    FN AL99031.59%
    United States Treasury Inflation Indexed Bonds 0.125 4/15/20221.16%
    FG G607371.09%
    FN BM18860.82%
    FN MA31010.80%
    Colombian TES 7.000 6/30/20320.76%
    Apple Inc. 2.750 1/13/20250.51%
    FHR 4663 HZ0.51%
    Verizon Communications Inc. 4.500 8/10/20330.49%
    Total % Portfolio in Top 10 holdings10.47%

    Top sectors as of 01/31/2018

    List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.
    Sector% of portfolio
    Investment grade credits34.7%
    MBS and CMOs20.1%
    High yield credits20.0%
    Emerging markets9.0%
    Commercial mortgage-backed securities7.0%
    Asset-backed securities5.1%
    Treasury inflation-protected securities1.2%
    International developed1.1%
    Municipal bonds0.1%
    U.S. Treasury securities0.1%
    Distribution history - annual distributions (Original Class)1,2
    Distributions ($ per share)
    YearCapital gains3Net investment

    1If a Portfolio makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Portfolio will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Portfolio's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Portfolio (if any).

    2Information on return of capital distributions (if any) is only provided from June 1, 2014 onward.

    3Includes both short- and long-term capital gains.

    Roger Early

    Roger A. Early, CPA, CFA

    Executive Director, Global Co-Head of Fixed Income — Macquarie Investment Management

    Start date on the Fund: May 2007

    Years of industry experience: 41

    (View bio)

    Paul Grillo

    Paul Grillo, CFA

    Senior Vice President, Chief Investment Officer of Total Return Strategies

    Start date on the Fund: June 2002

    Years of industry experience: 36

    (View bio)

    Adam Brown

    Adam H. Brown, CFA

    Senior Vice President, Senior Portfolio Manager, Co-Head of High Yield — Macquarie Investment Management, Americas

    Start date on the Fund: November 2015

    Years of industry experience: 19

    (View bio)

    Craig Dembeck

    Craig C. Dembek, CFA

    Senior Vice President, Head of Credit Research — Macquarie Investment Management, Americas

    Start date on the Fund: December 2012

    Years of industry experience: 23

    (View bio)

    J. David Hillmeyer

    David Hillmeyer, CFA

    Senior Vice President, Senior Portfolio Manager

    Start date on the Fund: February 2014

    Years of industry experience: 25

    (View bio)

    Paul Matlack

    Paul A. Matlack, CFA

    Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

    Start date on the Fund: December 2012

    Years of industry experience: 32

    (View bio)

    John McCarthy

    John P. McCarthy, CFA

    Senior Vice President, Senior Portfolio Manager, Co-Head of High Yield — Macquarie Investment Management, Americas

    Start date on the Fund: December 2012

    Years of industry experience: 31

    (View bio)

    The table below describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio.

    Shareholder fees
    Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
    Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
    Purchase reimbursement feesnone
    Redemption reimbursement feesnone
    Annual portfolio operating expenses
    Management fees0.43%
    Distribution and service (12b-1) feesnone
    Other expenses0.17%
    Total annual portfolio operating expenses0.60%
    Fee waivers and expense reimbursements(0.15%)
    Total annual portfolio operating expenses after fee waivers and expense reimbursements0.45%

    1The Portfolio’s investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, expenses, 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 portfolio operating expenses from exceeding 0.45% of the Portfolio’s average daily net assets from Feb. 28, 2017 through Feb. 28, 2018. These waivers and reimbursements may only be terminated by agreement of the Manager and the Portfolio.

    Carefully consider the Portfolio's investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Portfolio's prospectus and, if available, its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 231-8002. Investors should read the prospectus, and, if available, the summary prospectus carefully before investing.

    Investing involves risk, including the possible loss of principal.

    Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

    The Portfolio may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Portfolio may be prepaid prior to maturity, potentially forcing the Portfolio to reinvest that money at a lower interest rate.

    Interest payments on inflation-indexed debt securities will vary as the principal and/or interest is adjusted for inflation.

    High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.

    The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.

    International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

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

    The Portfolio may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

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

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

    Not FDIC Insured | No Bank Guarantee | May Lose Value

    Fund Finder

    Daily pricing (as of 02/20/2018)

    Original ClassPriceNet change
    Max offer price$10.01n/a

    Total net assets (as of 01/31/2018)

    $197.3 million all share classes

    Lipper ranking (as of 01/31/2018)

    YTD ranking21 / 273
    1 year47 / 256
    3 years113 / 204
    5 years81 / 188
    10 years18 / 112
    Lipper classificationCore Plus Bond Funds

    (View Lipper disclosure)

    Benchmark, peer group

    Bloomberg Barclays US Aggregate Index (view definition)

    Lipper Core Plus Bond Funds Average (view definition)

    Additional information