Delaware Capital Management Advisors, Inc.

107 Pages·2016·1.13 MB·English

Brochure

June 2022

Macquarie Investment
Management
Business Trust

Form ADV — Part 2A

This brochure provides information about the qualifications and business
practices of Macquarie Investment Management Business Trust (“MIMBT”).
If you have any questions about the contents of this brochure, please
contact us at [phone]. The information in this brochure has not
been approved or verified by the United States Securities and
Exchange Commission (the “SEC”) or by any state securities authority.
MIMBT is a registered investment adviser. Registration of an investment
adviser does not imply any level of skill or training. Additional information
about MIMBT is available on the SEC’s website at www.adviserinfo.sec.gov.
Pursuant to an exemption from the Commodity Futures Trading
Commission in connection with accounts of qualified eligible persons,
this brochure or account document is not required to be, and has not
been, filed with the Commission. The Commodity Futures Trading
Commission does not pass upon the merits of participating in a
trading program or upon the adequacy or accuracy of commodity
trading advisor disclosure, consequently, the Commodity Futures
Trading Commission has not reviewed or approved this trading
program or this brochure or account document.

610 Market Street, Philadelphia, PA 19106
[phone]
www.delawarefunds.com
Item 2 — Summary of Material Changes
The United States Securities and Exchange Commission (“SEC”) requires that Macquarie
Investment Management Business Trust (“MIMBT”) provide our clients with a summary of any
material changes made to MIMBT’s Form ADV Part 2A (the “Brochure”) since the date of our last
annual update. Our goal when preparing our Brochure and this summary of material changes is
to provide you with easy-to-understand “plain English disclosure,” using an easy-to-read format
and definite, concrete, and understandable words.
Below is a summary of the material changes to this Brochure since our last annual update. We
urge you to carefully review this summary of material changes and all subsequent summaries, as
they contain important information about any significant changes to our advisory services, fee
structure, business practices, conflicts of interest and disciplinary history.
A complete copy of MIMBT’s Brochure is available by calling [phone]. Our Brochure is also
available free of charge on the SEC’s website at www.adviserinfo.sec.gov.

• Item 5 – Fees and Compensation fee schedules included in Appendix A has been updated
to reflect our most recent fee schedule.

• Item 10 – Other Financial Industry Activities and Affiliations has been updated to reflect
the following:

o Macquarie Management Holdings, Inc. of Macquarie Asset Management (MAM),
the asset management division of Macquarie Group, purchased Waddell & Reed
Financial, Inc. on April 30th, 2021. This purchase included the registered
investment advisor, Ivy Investment Management Company and the broker-dealer,
Ivy Distributors, Inc. The transaction of the advisor and advisory asset business
has been completed and the transition of Ivy investment teams and businesses has
progressed throughout the year.

o MAM acquired New York-based Central Park Group, LLC (CPG), an independent
investment advisory firm that specializes in institutional-quality alternative
investment strategies for high-net-worth investors. The transaction closed March
14th, 2022.

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Item 3 — Table of Contents
Item 2 — Summary of Material Changes ..................................................................................... ii
Item 4 — Advisory Business ............................................................................................................ 1
Our Firm .......................................................................................................................... 1
Assets Under Management ............................................................................................. 1
Advisory Services and Individual Needs of Clients ........................................................ 1
Delaware Management Company (“DMC”) ..................................................................... 1
Macquarie Investment Management Advisers (“MIMA”) ............................................... 2
Defined Benefit Plans ................................................................................................................ 3
Endowments and Foundations ................................................................................................ 3
Other Services ............................................................................................................................. 3
Delaware Capital Management (“DCM”) ........................................................................ 3
Macquarie Asset Advisers (“MAA”) ................................................................................. 4
Macquarie Alternative Strategies (“MAS”) ..................................................................... 4
Delaware Investments Fund Advisers (“DIFA”) ............................................................. 4
Item 5 — Fees and Compensation .................................................................................................. 5
Delaware Management Company (“DMC”) ..................................................................... 5
Macquarie Investment Management Advisers (“MIMA”) ............................................... 5
Delaware Capital Management (“DCM”) ........................................................................ 6
Macquarie Asset Advisers (“MAA”) ................................................................................. 7
Macquarie Alternative Strategies (“MAS”) ..................................................................... 7
Delaware Investments Fund Advisers (“DIFA”) ............................................................. 7
Item 6 — Performance-Based Fees and Side-By-Side Management ...................................... 7
Performance-Based Fees .................................................................................................. 7
Side-by-Side Management ............................................................................................... 8
Item 7 — Types of Clients................................................................................................................. 8
Institutional Clients......................................................................................................... 8
Retail Investors ................................................................................................................ 8
Item 8 — Methods of Analysis, Investment Strategies and Risk of Loss .............................. 8
Methods of Analysis and Investment Strategies............................................................. 8
Risk of Loss ...................................................................................................................... 9
Item 9 — Disciplinary Information .............................................................................................. 10
Item 10 — Other Financial Industry Activities and Affiliations ........................................... 11
Registrations of Management Persons as Broker-Dealers or Registered
Representatives of Broker-Dealers ................................................................................ 11

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Registrations of Management Persons as Futures Commission Merchants,
Commodity Pool Operators or Commodity Trading Advisors ....................................... 11
Affiliations and Conflicts of Interest ............................................................................. 11
Recommendation of Other Investment Advisers .......................................................... 14
Item 11 — Code of Ethics, Participation or Interest in Client Transactions
and Personal Trading ...................................................................................................................... 14
Code of Ethics................................................................................................................. 14
Potential Conflicts Relating to Advisory Activities ....................................................... 15
Investments in Affiliated Funds .................................................................................... 16
Potential Restrictions and Conflicts Relating to Information Possessed
or Provided by MIMBT .................................................................................................. 16
Material Non-Public Information and Insider Trading ...................................................16
Information Barriers/Ethical Walls ......................................................................................17
Other Trading Restrictions.....................................................................................................17
Item 12 — Brokerage Practices .....................................................................................................17
Research and Other Soft Dollar Benefits ...................................................................... 17
Brokerage for Client Referrals ...................................................................................... 18
Directed Brokerage ........................................................................................................ 18
Aggregating Orders ........................................................................................................ 19
Wrap Accounts ............................................................................................................... 20
Item 13 — Review of Accounts ......................................................................................................21
Content and Frequency of Reports Provided to Clients ................................................ 22
Item 14 — Client Referrals and Other Compensation from Non-Clients ............................ 22
Compensation for Client Referrals ................................................................................ 22
Item 15 — Custody ...........................................................................................................................23
Item 16 — Investment Discretion ......................................................................................................... 23
Item 17 — Voting Client Securities .............................................................................................. 24
Item 18 — Financial Information .................................................................................................25
APPENDIX A .....................................................................................................................................26
APPENDIX B .....................................................................................................................................39

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Item 4 — Advisory Business institutional clients through its
investment advisory agreement with the
Our Firm client, written agreements regarding the
client’s investment guidelines and
Macquarie Investment Management objectives, or other written instructions.
Business Trust (“MIMBT”) is a business
Delaware Management Company
trust organized under the Delaware
(“DMC”)
Statutory Trust Act that consists of the
following six series:
The DMC series provides investment
• Delaware Management Company advisory services (the investment and
• Macquarie Investment Management reinvestment of assets) to registered
Advisers investment companies or “funds” within
• Delaware Capital Management Delaware Funds® by Macquarie (“DFM”)
• Macquarie Asset Advisers (formerly the Delaware Investments®
• Macquarie Alternative Strategies Family of Funds), as well as to certain
• Delaware Investments Fund Advisers other affiliated funds and pooled
vehicles. These services include
MIMBT has been in business since 1929 professional portfolio management,
and is a registered investment adviser investment research and analysis, and
under the Investment Advisers Act of the securities trading capabilities
1940 (the “Advisers Act”). required to make all investment
decisions for such funds, as well as
MIMBT’s principal owners (those owning managing fund assets on an ongoing
more than 25% of the firm) are Delaware basis and placing orders for the execution
Investments Management Company, of securities transactions.
LLC, Macquarie Management Holdings,
Inc., Macquarie Affiliated Managers DMC provides both direct investment
(USA) Inc., Macquarie Affiliated management services, where it invests
Managers Holdings (USA) Inc., and reinvests fund assets, and indirect
Macquarie FG Holdings Inc., Macquarie investment management services, where
Asset Management US Holdings Pty it identifies and hires sub-advisory firms
Limited, Macquarie Asset Management with specific investment expertise to
Holdings Pty Limited, and Macquarie manage fund assets. When a sub-adviser
Group Limited. has been engaged, DMC pays the sub-
adviser out of its management fee and
Assets Under Management supervises and monitors the activities of
the sub-advisory firm. DMC is the
As of March 31, 2022, MIMBT had assets advisor to a continuously offered closed-
under management of $236,026,994,245 end fund in a new auction-fund structure
all of which are managed on a that seeks to offer shareholders annual
discretionary basis. tenders and the ability to buy and sell
shares monthly. The Fund focuses on
private markets securities.
Advisory Services and Individual Needs
of Clients DMC enters into an investment advisory
agreement with a given fund. The
The services offered by the various series advisory agreement is subject to periodic
of MIMBT are described more fully review and continuance (generally
below. In addition, MIMBT often tailors annually) by the fund’s Board of
its investment advisory services to the Directors or Trustees, as required under
individual needs of particular the Investment Company Act of 1940, as

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amended (the “1940 Act”). Each advisory generally managed on a fully
agreement is terminable without discretionary basis).
penalty, generally upon sixty (60) days’
notice by the fund’s Board or by DMC, On a limited basis, MIMA also provides
and each terminates automatically in the investment advisory services to certain
event of its assignment (as that term is clients under an all-inclusive fee
defined in the 1940 Act). Each fund’s arrangement known as a “wrap fee
board supervises and directs DMC’s agreement.” MIMA provides investment
provision of advisory services. management services to clients who
generally do not direct trading of their
Macquarie Investment Management
account to a particular bank or a
Advisers (“MIMA”) registered broker/dealer or a financial
service organization (also known as
The MIMA series provides investment “wrap fee sponsors”). These types of
advisory services to large institutional accounts are also known as "free trading
clients domiciled in the U.S. and abroad, accounts.”
many of which are tax-exempt, and to
insurance company general and separate In addition to traditional investment
accounts. Clients of MIMA include management services, MIMA offers
without limitation, pension and profit- asset/liability analysis services for
sharing plans and endowment funds, pension plans, endowments, and
domestic or international registered and foundations. These services attempt to
unregistered pooled vehicles, as well as manage a client’s assets relative to a
the nuclear decommissioning trusts of future defined benefit pension liability or
utility companies. spending requirements.

MIMBT’s MIMA series is also the Certain MIMBT series, such as MIMA,
investment manager for Macquarie Fund Macquarie Asset Advisers (“MAA”) or
Macquarie Alternative Strategies
Solutions (the “Company”), an
(“MAS”), offer transition management
investment company organized as an
services to institutional clients seeking to
investment company (société
transition their portfolio holdings from
d'investissement à capital variable) one investment manager to another
registered under Part I of the and/or from one investment strategy to
Luxembourg Law of 17 December 2010 another. Such services may be provided
in conjunction with a MIMBT series or an
concerning undertakings for collective
affiliate of MIMBT within the Macquarie
investment (the "Law of 2010"). The
Group, as well as third parties. The
SICAV funds are available to qualified,
relevant MIMBT series may give advice
non-U.S. investors. MIMA provides
to transition management clients
investment sub-advisory services to regarding trading strategies, including
other UCITS and ex-U.S. pooled vehicles. recommending trading baskets of
securities rather than individual
In addition to the foregoing, MIMA securities when deemed to be in the best
serves as investment manager to interest of such clients and to the extent
Macquarie Collective Investment Trust consistent with applicable laws. MIMBT
(“CIT”), a collective investment of assets affiliates within the Macquarie Group
of participating tax qualified pension and may provide brokerage and other
profit-sharing plans and related trusts services, including referral services, to
and other tax deferred entities and transition accounts of MIMBT series that
provides advisory services to high-net- have been authorized or directed by the
worth individuals (whose accounts are transition management clients to use

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such affiliates to the extent consistent marketed to intermediaries, certain
with applicable laws and may be clients request our traditional asset
compensated directly or indirectly for management services in connection with
their services in accordance with receiving the asset allocation service. The
applicable law. asset management services include
developing and implementing a
MIMA provides these services on its own particular asset solution given the
or in conjunction with our traditional client’s projected spending goals.
investment management services, which
Other Services
are described elsewhere in this brochure.
These services can be provided to
financial intermediaries or to their Other services offered by MIMA include:
clients.
(1) General investment management
Defined Benefit Plans services; and

Our asset/liability analysis involves (2) Related computer and reporting
assessing a client’s existing asset services, or services to liaison with the
solution relative to its pension liabilities. client’s custodian although MIMA never
We may include additional alternative has custody of client account assets.
asset solutions in the analysis. Some or
Delaware Capital Management (“DCM”)
all of the following factors may be
considered in the analysis, among others:
projected liability cash flow projections; The DCM series participates primarily in
liability return review and custom wrap fee arrangements that it enters
liability benchmarking; and modelling of with various wrap fee sponsors for equity
asset returns. and fixed income strategies. These wrap
fee sponsors may also be registered as
Certain clients request MIMA’s investment advisers under the Advisers
traditional asset management services in Act.
connection with receiving the
asset/liability analysis. These asset In some circumstances, DCM enters into
management services can include agreements directly with individual
developing and implementing a wrap fee clients using a wrap fee
particular asset solution given the plan’s agreement. The purpose of these wrap
liability structure and funded status and fee agreements is to allow DCM to
the plan sponsor’s financial position and manage wrap fee client accounts and
objectives. Examples of the asset make investment decisions on behalf of
management services include: liability the client as to which securities are
driven investments; long duration bought and sold for the account, as well
portfolio management; and excess alpha as the total amount of securities to be
and low correlation investment bought and sold at a given time. The
strategies. discretionary authority granted to DCM
may be limited by conditions imposed by
Endowments and Foundations wrap sponsors or wrap fee clients in their
stated investment guidelines and
The model for our asset allocation service
objectives or using separate written
for endowments and foundations
instructions. At times, DCM’s
incorporates user-defined parameters
discretionary authority is limited by
including inflation and capital market
directions from the wrap fee client to
assumptions to allow a client to assess
have transactions effected only through
projected asset and spending levels.
designated registered broker-dealers.
Although the service is generally
DCM does not generally take taxes into

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consideration when making investment Macquarie Asset Advisers (“MAA”)
decisions for wrap fee clients.
The MAA series provides investment
It should be noted that, in some advisory services primarily to private
instances, wrap account assets are CDOs and CLOs that are sold to large
invested in a money market mutual fund institutional investors.
that is not managed by DCM. The
expenses of investing in these funds will Macquarie Alternative Strategies
include management fees that are (“MAS”)
incurred in addition to any fees payable
to DCM. The MAS series provides investment
advisory services primarily to
DCM also provides investment advisory institutional accounts and alternative
services to wrap sponsors by providing a investment portfolios, including on-shore
model portfolio of securities to wrap fee and off-shore products.
sponsors. The wrap fee sponsor typically
has full discretion with regard to the Delaware Investments Fund Advisers
implementation of these model portfolios. (“DIFA”)

DCM also provides investment advisory
The DIFA series provides investment
services to fixed income wrap program
sub-advisory services to certain
participants. For the accounts of these
registered investment companies or
clients, DCM generally does not execute
“funds” other than DFM and certain
any transactions in fixed income
other affiliated funds. These services
securities through a wrap sponsor or an
include professional portfolio
affiliated broker of the wrap sponsor’s
management, investment research and
firm. For certain equity investment
analysis, and the securities trading
strategies, DCM will “trade away” from
capabilities needed for making all
the wrap sponsor (or an affiliated broker-
investment decisions for such funds, as
dealer of the wrap sponsor). This
well as managing fund assets on an
practice is unlike the typical wrap
ongoing basis and placing orders for the
program practice whereby most
execution of securities transactions.
securities transactions are directed to

and executed by the wrap sponsor (or an
DIFA either enters into an investment
affiliated broker-dealer of the wrap
advisory agreement with a given fund
sponsor) and the wrap fee paid by the
and/or into a sub-advisory agreement
client covers or includes brokerage
with the fund’s investment adviser. In
transaction costs. As a result, any such
each case, the advisory or sub-advisory
“trade away” brokerage transaction costs
agreement is subject to periodic review
of “trade away” transactions, (e.g.,
and continuance (generally annually) by
commissions, mark-ups and mark-
the fund’s Board of Directors or Trustees,
downs) paid for fixed-income securities
as required under the 1940 Act. Each
transactions and equity securities
advisory or sub-advisory agreement is
transactions effected for wrap program
terminable without penalty, generally
participants will not have been offset or
upon sixty (60) days’ notice by the fund’s
reduced by wrap fees paid and will
Board or by DIFA, and each terminates
represent an additional cost to be paid by
automatically in the event of its
the wrap program participant (in
assignment (as that term is defined in
addition to the wrap fee).
the 1940 Act). Each fund’s board

supervises and directs DIFA’s provision
of advisory services and, in cases where
DIFA acts as sub-adviser, DIFA is also

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supervised by the separate investment Generally, the fee is based upon the
advisory firm that acts as investment market value of the account as of the end
adviser to the fund. of each calendar quarter, although in
some instances it can be based upon the
Item 5 — Fees and account’s average quarterly assets, three
Compensation month or four-month average. The fee
structure vary from time to time as the

advisory fees are subject to negotiation.
MIMBT’s fees and compensation vary
In certain instances, a portion of the fee,
based upon the type of service provided.
which may be greater or less than the
Clients generally have different fee
standard fee schedule, is calculated on a
arrangements. The standard fee
performance basis. Fees generally are
structures and schedules currently in
calculated and payable quarterly,
effect for the services offered by each of
monthly in some instances per client
MIMBT’s series are described more fully
contract and will be prorated if a contract
below and in Appendix A, attached to this
is terminated other than at quarter-end.
Brochure. Additionally, clients will
Fees for institutional accounts are
generally incur brokerage fees for the
generally not billed in advance of
transactions executed in their accounts
services. A table of representative fee
as discussed more fully in Item 12,
schedules for institutional accounts is
“Brokerage Practices.” Brokerage fees
attached to this Brochure as Appendix A.
differ for MIMBT’s wrap fee clients as

described below.
The advisory and other fees and expenses
Delaware Management Company that MIMA receives from the UCITS
(“DMC”) funds and/or SICAVS for which it serves
as the advisor and sub-advisor are

generally disclosed in the applicable
The advisory and other fees and expenses
prospectus. The compensation paid to
that DMC receives from the funds for
MIMA by each UCITS fund varies,
which it serves as advisor or sub-advisor
although most fees are computed based
are disclosed in each fund’s prospectus,
on the average daily net assets of the
generally most fees are computed based
specific UCITS fund. The fees are
on the average daily net assets of the
accrued daily and paid monthly in
specific fund. A copy of the appropriate
arrears. As described in the fund
prospectus is provided to clients prior to
prospectus, MIMA from time to time
investment and is available free of
agrees to waive fees and/or out-of-pocket
charge upon request at any time.
expenses to the extent necessary to limit

the UCITS funds’ expenses to specified
As described in the fund prospectus,
amounts.
DMC from time to time agrees to waive

fees and/or out-of-pocket expenses to the
Compensation paid to MIMA by pooled
extent necessary to limit the funds’
vehicles it manages will generally be
expenses to specified amounts.
similarly structured and will be governed

by and disclosed in an offering document
Macquarie Investment Management
or similar document.
Advisers (“MIMA”)

The trustee of the Macquarie CIT pays
The compensation paid to MIMA by each
MIMA directly for the investment
institutional client account, including
advisory and administrative services
registered or unregistered pooled
provided by MIMA to the Macquarie CIT.
vehicles, is generally based upon a
The trustee receives a fee, calculated
percentage of assets under management
daily, and paid monthly in arrears, for
and may be subject to a minimum charge.

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the trustee, management, investment Delaware Capital Management (“DCM”)
advisory and administrative services
provided by the trustee and MIMA. DCM clients that receive investment
advisory services subject to a wrap fee
Advisory services provided to high-net- agreement are generally charged a
worth individuals are provided at fee bundled fee by the wrap fee sponsor
rates that correspond to those outlined (referred to as a “wrap fee”) based upon a
for institutional clients in Appendix A. percentage of the market value of the
account. This wrap fee generally covers
MIMA clients may receive investment portions of or all services for: (1) selection
advisory services subject to wrap fee or assistance in the selection of one or
agreements similar to those utilized by more investment advisers participating
MIMBT’s DCM series. Please reference in the program; (2) the investment
the discussion of DCM’s wrap fees below adviser's fee to manage the client's
for more information. portfolio on a discretionary basis or to
provide a portfolio model; (3) brokerage
Over time, the fee structure for these commissions and, in some instances,
types of services vary as the advisory fees dealer mark-ups or mark-downs for the
are subject to negotiation with the execution of trades by the designated
sponsor or client. MIMA can be broker; (4) acting as custodian for the
compensated on a different basis with assets in the client's portfolio which also
respect to other wrap fee programs, but includes providing the client with trade
under no circumstances will MIMA be confirms and regular statements; (5)
compensated on the basis of a share of periodic evaluation and comparison of
the capital gains upon, or the capital account performance, and (6) continuing
appreciation of, the assets under consultation on investment objectives. A
management. wrap fee agreement may not include all
fees described above and not all fees will
MIMA may charge clients a flat or other be covered by the wrap fee (such as
fee for certain services, such as “trade-away” transactions). Please refer
asset/liability analysis, transition to the information relating to wrap
management services, or management of accounts in Item 12, “Brokerage
derivatives. The fee may vary from time Practices.”
to time, as it is subject to negotiation.
The fee may also be waived in certain For the vast majority of wrap accounts,
instances. If such a fee is charged, the fee
the sponsor charges the fee to the client,
is typically not based on assets under
rather than DCM. The sponsor calculates
management.
the fee to be paid to DCM based upon the

negotiated fee contained within the
Fees for other investment management
services, including investment contract between the sponsor and DCM.
management services provided to The fees received for investment advice
insurance company and separate to wrap programs vary depending on the
accounts (“Insurance Asset
investment strategy selected, level of
Management”) provided by MIMA are
assets under management, and other
generally calculated as a percentage of
factors.
assets under management and are
payable in arrears. However, such fees
For some wrap accounts, DCM has a
are also typically negotiated on a case-by-
direct contract with the client. In these
case basis and vary between clients.
cases, DCM calculates the fee due based

on the fee schedule in place with the
client. DCM may bill the client or may

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