Objective
The Fund’s investment objective is to seek to provide total return through a combination of a high level of current income and capital appreciation.
Strategy
The Fund will seek to achieve its investment objective by investing primarily in a portfolio of high yield corporate bonds of varying maturities and other fixed income instruments of predominantly corporate issuers, including secured and unsecured loan assignments, loan participations and other loan instruments (“Loans”). Under normal circ*mstances, the Fund will invest at least 80% of its Managed Assets (as defined herein) in a portfolio of U.S. and foreign bonds, loans and other fixed income instruments, as well as other investments (including derivatives) with similar economic characteristics. The Fund will invest primarily in instruments that are, at the time of purchase, rated below investment grade (below Baa3 by Moody’s Investors Service, Inc. (“Moody’s”) or below BBB- by either Standard & Poor’s Rating Services (“S&P”) or Fitch, Inc. (“Fitch”), or comparably rated by another nationally recognized statistical rating organization (“NRSRO”)), or unrated but judged by the Adviser to be of comparable quality.
Total net assets as of 11/30/2022
All share classes
$193.8 million
Portfolio
| Fund information as of 01/31/2024 | |
|---|---|
| Ticker symbol (NAV) | XIVHX |
| Ticker symbol | IVH |
| Trading Exchange | NYSE AMEX |
| SEC yield | n/a |
| YTD distributions declared | n/a |
| Expense ratio | 1.12% |
| Turnover ratio | 51% |
| Inception date | 05/29/2013 |
For Fund distributions declared please see the fact sheet and/or dividend press releases.
Holdings are as of the date indicated and subject to change.
Management
Adam H. Brown,CFA
- Managing Director, Senior Portfolio Manager
- Start date on the Fund: November 2021
- Years of industry experience: 24
- Read bio
Biography
Adam H. Brown
Managing Director, Senior Portfolio Manager
Adam H. Brown is a Senior Portfolio Manager for the firm’s high yield strategies within Macquarie AssetManagement Fixed Income (MFI). He manages MFI’s bank loan portfolios and is a co-portfolio manager for thehigh yield, fixed rate multisector, and core plus strategies. Brown joined Macquarie Asset Management (MAM) inApril 2011 as part of the firm’s integration of Macquarie Four Corners Capital Management, where he hadworked since 2002. At Four Corners, he was a co-portfolio manager on the firm’s collateralized loan obligations(CLOs) and a senior research analyst supporting noninvestment grade portfolios. Before that, Brown was withthe predecessor of Wells Fargo Securities, where he worked in the leveraged finance group arranging seniorsecured bank loans and high yield bond financings for financial sponsors and corporate issuers. He earned anMBA from the A.B. Freeman School of Business at Tulane University and a bachelor’s degree in Accountingfrom the University of Florida.
John P. McCarthy,CFA
- Managing Director, Senior Portfolio Manager
- Start date on the Fund: November 2021
- Years of industry experience: 35
- Read bio
Biography
John P. McCarthy
Managing Director, Senior Portfolio Manager
John P. McCarthy is a Senior Portfolio Manager for the Macquarie Investment Management Fixed Income (MFI) high yield strategies, a role he assumed in July 2016. From December 2012 to June 2016, he was co-head of credit research for MFI. McCarthy rejoined Macquarie Investment Management in March 2007 as a senior research analyst, after he worked in the firm’s fixed income area from 1990 to 2000 as a senior high yield analyst and high yield trader, and from 2001 to 2002 as a municipal bond trader. Prior to rejoining the firm, he was a senior high yield analyst/trader at Chartwell Investment Partners. McCarthy earned a bachelor’s degree in business administration from Babson College, and he is a member of the CFA Society of Philadelphia.
Supplemental data
Ratios and supplemental data
Year ended
| 9/30/2022 | 9/30/2021 | 9/30/2020 | 9/30/2019 | 9/30/2018 | |
|---|---|---|---|---|---|
| Net asset value, beginning of period | $14.93 | $13.58 | $15.05 | $15.96 | $16.34 |
| Net investment income | 0.931 | 1.002 | 1.122 | 1.252 | 1.362 |
| Net realized and unrealized gain (loss) on investments | (3.75) | 1.32 | (1.36) | (0.84) | (0.46) |
| Total from investment operations | (2.82) | 2.32 | (0.24) | 0.41 | 0.90 |
| Distributions from net investment income | (0.88) | (0.97) | (1.23) | (1.32) | (1.28) |
| Net asset value, end of period | $11.23 | $14.93 | $13.58 | $15.05 | $15.96 |
| Market value, end of period | $10.09 | $13.67 | $11.90 | $13.71 | $14.26 |
| Total return based on net asset value3 | (19.18%) | 18.29% | (0.24)% | 4.10% | 6.68% |
| Total return based on market value3 | (20.69%) | 23.59% | (4.04)% | 6.07% | (2.47)% |
| Net assets, end of period (in millions) | $186,029 | $2474 | $2254 | $2494 | $2644 |
| Ratio of expenses to average net assets5 | 2.15% | 1.82% | 2.60% | 3.16% | 2.77% |
| Ratio of expenses to average net assets excluding interest expense6 | 1.55% | 1.50% | 1.82% | 1.73% | 1.59% |
| Ratio of net investment income to average net assets7 | 6.85% | 6.80% | 8.18% | 8.27% | 8.50% |
| Portfolio turnover rate | 51% | 55% | 45% | 34% | 46% |
1Calculated using average shares outstanding.
2Based on average weekly shares outstanding.
3Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan.
4Net assets reported in millions.
5The ratio of expenses to adjusted average net assets (excluding debt outstanding) for the years ended September 30, 2022, 2021, 2020, 2019 and 2018 are 1.55%, 1.34%, 1.82%, 2.17%, and 1.90%, respectively.
6The ratio of expenses to adjusted average net assets excluding interest expense (excluding debt outstanding) for the years ended September 30, 2022, 2021, 2020, 2019 and2018 are 1.12%, 1.11%, 1.27%, 1.19%, and 1.09%, respectively.
7The ratio of net investment income to adjusted average net assets (excluding debt outstanding) for the years ended September 30, 2022, 2021, 2020, 2019 and 2018 are 4.94%, 5.01%,5.71%, 5.69%, and 5.81%, respectively.
Resources
Fact sheet and commentaries
Prospectuses and reports
Additional information
Significant Fund Event
On August 11, 2022, the Board of Trustees of Delaware Ivy High Income Opportunities Fund (“Acquired Fund”) approved the reorganization of the Acquired Fund into abrdn Income Credit Strategies Fund (“Acquiring Fund”). It is currently expected that the reorganization will be completed in the first quarter of 2023 subject to (i) approval of the reorganization by the Acquired Fund shareholders, (ii) approval by Acquiring Fund shareholders of the issuance of shares of the Acquiring Fund, and (iii) the satisfaction of customary closing conditions.
Significant Fund Event
On September 13, 2021, the Board of Trustees (Board) approved the appointment of the portfolio manager team of Adam H. Brown and John P. McCarthy of Delaware Management Company as new Fund portfolio managers that took effect on or about November 15, 2021.
Investing in closed-end investment companies involves risk, including the possible loss of principal.
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 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.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
Closed-end fund shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation or any other government agency.
Closed-end funds, unlike open-end funds, are not continuously offered. After being issued during a one-time-only public offering, shares of closed-end funds are sold in the open market through a securities exchange. Net asset value (NAV) is calculated by subtracting total liabilities by total assets, then dividing by the number of shares outstanding. At the time of sale, your shares may have a market price that is above or below NAV, and may be worth more or less than your original investment.
Not FDIC Insured • No Bank Guarantee • May Lose Value
All third-party marks cited are the property of their respective owners.
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.
