FPIMX — Delaware Premium Income Fund
Data updated: 2024-05-28
FPIMX — Delaware Premium Income Fund. United States Large Cap Blend / Core Equity · $24.51M AUM. Holdings, fees, performance and SEC filings.
FPIMX Fund Overview
FPIMX — Delaware Premium Income Fund is a US mutual fund managed by Delaware Group Equity Funds IV, categorised as United States Large Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Delaware Group Equity Funds IV
- Category: United States Large Cap Blend / Core Equity
- Assets under management: $24.51M
- 1-year return: 9.7%
- Ticker: FPIMX
- SEC CIK: 0000778108
- SEC series ID: S000065919
- Share class ID: C000212940
FPIMX Investment Objective and Strategy
Delaware Premium Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Delaware Group Equity Funds IV.
Investment objective
Delaware Premium Income Fund seeks to generate income.
Principal investment strategy
The Fund invests in a portfolio of equity securities and writes (sells) call options on those securities. Under normal circumstances, the Fund will write (sell) call options on a majority of its total assets. Typically, all of the call options written (sold) by the Fund are expected to be in the money at the time they are written (sold). The Funds call option writing strategy is designed to generate income and lower the overall risk profile of the Funds portfolio. A call option gives the purchaser of the option the right to buy, and the writer, in this case, the Fund, the obligation to sell, the underlying security at the exercise price at any time prior to the expiration of the option, regardless of the market price of the underlying security during the option period. An in-the-money call option means that its exercise price is below the current market price of the underlying security.
The Fund receives premiums for writing covered call options as consideration for undertaking the obligations under the option contracts. Premiums received for a call option the Fund writes will be treated as a short-term capital gain if the option expires. The Fund will normally write (sell) covered call options listed on US exchanges on the equity securities held by the Fund. The Funds equity investments will consist primarily of common stocks of large-size US companies (companies over $10 billion in market capitalization), certain of which may pay dividends, and US dollar-denominated equity securities of foreign issuers (i.e., American Depositary Receipts (ADRs)), traded on US securities exchanges. To a lesser extent, the Fund may also invest in and write (sell) covered call options on securities of mid- and small-capitalization issuers and exchange-traded funds (ETFs) that track certain market indices, such as the S&P 500.
Small - capitalization companies are defined as companies that have a market cap no greater than $5 billion and mid-capitalization companies have a market cap between $5 and $10 billion. The Funds covered call writing strategy is intended to generate income rather than keep pace with the equity markets. As a result, the Fund may be expected to underperform equity markets during periods of sharply rising equity prices. Covered call options may be sold up to the number of shares of the equity securities held by the Fund. In selecting investments, Ziegler Capital Management, LLC (ZCM), the Funds sub-advisor, considers the following, among other criteria: a) companies in an industry with a large market share or significant revenues that fit the Funds investment strategy; b) companies with new products or new management to replace underperforming management; c) recent or anticipated fundamental improvements in industry environment; and d) companies that are out of favor.
ZCM considers several factors when writing (selling) call options, including the overall equity market outlook, sector and/or industry attractiveness, individual security considerations, and relative and/or historical levels of option premiums. The Fund may sell a security based on the following, among other criteria: a) an actual or anticipated significant decline in an issuers profitability and/or a significant negative outlook from management; b) a large appreciation in the stock price that leads to overvaluation relative to itself and its peers historically; c) significant management turnover at the senior level; d) an industry-wide decrease in demand for an issuers products or services; or e) unattractive call premiums. ZCM writes call options based upon its outlook on the economy and stock market and analysis of individual stocks, which can impact the exercise price and expiration of a call option.
The writing of covered call options may result in frequent trading and a high portfolio turnover rate.
FPIMX Holdings
Top 10 holdings of Delaware Premium Income Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| BlackRock Inc | 7.14% |
| Alphabet Inc | 6.47% |
| Broadcom Inc | 5.95% |
| Booking Holdings Inc | 5.92% |
| Microsoft Corp | 5.84% |
| Cisco Systems Inc | 5.27% |
| Bank of America Corp | 4.86% |
| Boeing Co/The | 4.72% |
| Texas Instruments Inc | 4.69% |
| Corning Inc | 4.60% |
FPIMX Portfolio Allocation
Asset-class allocation of Delaware Premium Income Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 121.9% |
FPIMX Performance
Total returns for FPIMX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 9.7% |
| 3 years (annualised) | 6.3% |
FPIMX Risk Information
Risk metrics for FPIMX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 3.5%
FPIMX Costs and Fees
FPIMX costs about $98 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.98%
- Gross expense ratio: 1.12%
- Portfolio turnover: 22%
- Brokerage commissions: 12.64 bps of average net assets (SEC N-CEN)
FPIMX Cashflows
Over the 12 months to 2024-03, Delaware Premium Income Fund had net outflows of $868.08K, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-03 | −$16.15M |
| 2024-02 | −$1.52M |
| 2024-01 | −$2.65M |
| 2023-12 | $1.88M |
| 2023-11 | $3.21M |
| 2023-10 | $3.41M |
FPIMX Debt Constituents
No individual debt constituents are reported in Delaware Premium Income Fund's latest SEC N-PORT filing.
FPIMX Prospectus and SEC Filings
Official Delaware Premium Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2024-01-26
- Prospectus (485BPOS) — filed 2023-01-27
- Prospectus (485BPOS) — filed 2022-01-27
- Portfolio holdings (N-PORT) — filed 2024-05-28
- Portfolio holdings (N-PORT) — filed 2024-02-27
- Portfolio holdings (N-PORT) — filed 2023-11-21
- Annual census (N-CEN) — filed 2023-12-11
- Annual census (N-CEN) — filed 2022-12-13
Related Funds
Other United States Large Cap Blend / Core Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.