Optimum Fixed Income Fund

Key features

  • The objective of Optimum Fixed Income Fund is to seek a high level of income, and it may also seek growth of capital.
  • PIMCO selects securities by developing an outlook for interest rates, currency exchange rates and the economy; analyzing credit and call risks, and utilizing other security selection techniques.
  • Delaware’s investment process emphasizes bottom-up, fundamental research coupled with top-down macroeconomic analysis.
Fund information
Inception date08/01/2003
Dividends paid (if any)Annually
Capital gains paid (if any)December
Fund identifiers
NASDAQOAFIX
CUSIP246118681
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Account features
Payroll DeductionNo
IRAsYes

On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.

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 (08/31/2018)

as of quarter-end (06/30/2018)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-1.16%-1.35%1.62%2.04%4.40%4.24%08/01/2003
Max offer price-5.66%-5.82%0.07%1.11%3.92%3.92%
Bloomberg Barclays US Aggregate Index-0.96%-1.05%1.76%2.49%3.70%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.54%-0.33%1.44%1.80%4.26%4.26%08/01/2003
Max offer price-5.01%-4.82%-0.10%0.88%3.78%3.93%
Bloomberg Barclays US Aggregate Index-0.16%-0.40%1.72%2.27%3.72%n/a

Returns for less than one year are not annualized.

Class A shares have a maximum up-front sales charge of 4.50% and are subject to an annual distribution fee.

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
Gross1.10%
Net1.10%
Performance characteristics - as of 08/31/2018
Annualized standard deviation, 3 years (view definition)2.24
SEC 30-day yield with waiver (view definition)2.79%
SEC 30-day yield without waiver (view definition)2.79%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2018-1.06%-0.54%n/an/an/a
20171.30%1.60%1.05%0.23%4.23%
20161.96%1.81%1.05%-2.10%2.69%
20151.78%-1.65%-0.42%-0.49%-0.81%
20141.81%1.95%-0.31%0.74%4.25%
20130.10%-3.53%0.21%0.17%-3.06%
20121.25%2.59%2.13%0.56%6.68%
20111.27%1.96%1.66%1.68%6.74%
20103.45%2.85%3.62%-0.85%9.32%
20091.31%9.23%9.75%3.40%25.58%
20080.11%-1.04%-3.11%-5.10%-8.91%

On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.

Investment managers

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: 42

(View bio)


Paul Grillo

Paul Grillo, CFA

Senior Vice President, Chief Investment Officer — Diversified Income

Start date on the Fund: August 2003

Years of industry experience: 37

(View bio)


Adam Brown

Adam H. Brown, CFA

Senior Vice President, Co-Head of High Yield, Senior Portfolio Manager

Start date on the Fund: January 2016

Years of industry experience: 20

(View bio)


Wen-Dar Chen

Wen-Dar Chen, Ph.D.

Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

Start date on the Fund: May 2007

Years of industry experience: 32

(View bio)


J. David Hillmeyer

David Hillmeyer, CFA

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

Start date on the Fund: April 2011

Years of industry experience: 25

(View bio)


John McCarthy

John P. McCarthy, CFA

Senior Vice President, Co-Head of High Yield, Senior Portfolio Manager

Start date on the Fund: July 2016

Years of industry experience: 31

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

Executive Director, Head of US Fixed Income

Start date on the Fund: February 2015

Years of industry experience: 29

(View bio)


Sub-advisor

Pacific Investment Management Company, LLC (PIMCO)

Jerome M. Schneider

Managing Director (Newport Beach) and Portfolio Manager

Start date on the Fund: January 2015

Jerome M. Schneider shares primary responsibility for the day-to-day management of PIMCO’s share of the Fund’s assets. He is a managing director in the Newport Beach office and head of short-term portfolio management and funding. Morningstar named him Fixed-Income Fund Manager of the Year (US) for 2015. Prior to joining PIMCO in 2008, Schneider was a senior managing director with Bear Stearns. There he most recently specialized in credit and mortgage-related funding transactions and helped develop one of the first "repo" conduit financing companies. Additionally, during his tenure at Bear Stearns he held various positions on the municipal and fixed income derivatives trading desks. Schneider has 22 years of investment experience and holds an undergraduate degree in economics and international relations from the University of Pennsylvania and an MBA from the Stern School of Business at New York University.

Marc P. Seidner

CIO Non-traditional Strategies, Managing Director, and Head of Portfolio Management (NY Office)

Start date on the Fund: January 2015

Marc P. Seidner shares primary responsibility for the day-to-day management of PIMCO’s share of the Fund’s assets. He is also a generalist portfolio manager and a member of the Investment Committee. Seidner rejoined PIMCO in November 2014 after serving as head of fixed income at GMO LLC. Previously, he was a PIMCO managing director, generalist portfolio manager and member of the Investment Committee until January 2014. Prior to joining PIMCO in 2009, he was a managing director and domestic fixed income portfolio manager at Harvard Management Company. Previously, Seidner was director of active core strategies at Standish Mellon Asset Management and a senior portfolio manager at Fidelity Management and Research. He has 31 years of investment experience and holds an undergraduate degree in economics from Boston College.

In addition, PIMCO has an Investment Committee, which oversees the setting of investment policy decisions, including duration positioning, yield curve management, sector rotation, credit quality and overall portfolio composition, for all PIMCO portfolios and strategies, including PIMCO’s share of the Fund’s assets.

On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.

You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Optimum Funds. More information about these and other discounts is available from your financial intermediary, in the Fund's Prospectus under the section entitled "About your account," and in the Fund's statement of additional information (SAI) under the section entitled "Purchasing Shares."

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

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price4.50%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.53%
Distribution and service (12b-1) fees0.25%
Other expenses0.32%
Total annual fund operating expenses1.10%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers1.10%

On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.

1The Fund’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, 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 0.85% of the Fund’s average daily net assets from July 27, 2018 through July 29, 2019. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

The chart below lists the percentage of the Fund's total assets under management that each sub-advisor manages on behalf of the Fund. The percentages include securities, cash, and any other assets managed by each sub-advisor in its sleeve of the Fund. These percentage allocations should be updated some time after 30 days following a given month end.

Date Delaware
Management Company
PIMCO Total
Strategy Multisector Floating-rate
multisector
Total return Low duration
08/31/2017 46.35% 5.02% 44.03% 4.59% 100%
09/29/2017 46.35% 5.08% 43.95% 4.62% 100%
10/31/2017 46.29% 5.13% 43.95% 4.63% 100%
11/30/2017 46.27% 5.16% 43.93% 4.63% 100%
12/30/2017 46.25% 5.18% 43.96% 4.61% 100%
01/31/2018 46.37% 5.29% 43.71% 4.63% 100%
02/28/2018 46.25% 5.36% 43.72% 4.67% 100%
03/29/2018 46.13% 5.37% 43.85% 4.65% 100%
04/30/2018 46.01% 5.46% 43.84% 4.69% 100%
05/31/2018 45.78% 5.46% 44.07% 4.69% 100%
06/30/2018 45.63% 5.48% 44.19% 4.70% 100%
07/31/2018 45.64% 5.50% 44.15%  4.70%  100%

Total may not equal 100% due to rounding.

On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by visiting optimummutualfunds.com/literature or calling 800 914-0278. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Mortgage-backed securities may experience increased prepayments on the underlying mortgages if rates decline, which may require the Fund to reinvest in lower yielding securities.

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 Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

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

Securities in the lowest of the rating categories considered to be investment grade (that is, Baa or BBB) have some speculative characteristics.

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.

Diversification may not protect against market risk.

The Fund 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.

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 09/21/2018)

Class APriceNet change
NAV$9.28no chg
Max offer price$9.72n/a

Total net assets (as of 08/31/2018)

$2.3 billion all share classes

Lipper ranking (as of 08/31/2018)

YTD ranking159 / 282
1 year178 / 271
3 years171 / 216
5 years166 / 197
10 years79 / 122
Lipper classificationCore Plus Bond Funds

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Holdings

Benchmark, peer group

Bloomberg Barclays US Aggregate Index (view definition)

Lipper Core Plus Bond Funds Average (view definition)

Additional information

On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.