Delaware International Value Equity Fund


Delaware International Value Equity Fund seeks long-term growth without undue risk to principal.


The Fund invests primarily in equity securities that are organized, have a majority of their assets, or generate the majority of their operating income outside the United States, and that provide the potential for capital appreciation.

Fund information
Inception date10/31/1991
Dividends paid*Annually
Capital gains paid*Annually

*If any.

Fund identifiers
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
Payroll DeductionYes

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 (03/31/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.56%14.27%3.68%15.13%5.73%6.73%10/31/1991
Max offer pricen/a7.73%1.65%13.77%5.10%6.45%
MSCI EAFE Index (Gross)0.77%18.06%7.72%16.55%7.01%n/a
MSCI EAFE Index (Net)0.66%17.56%7.21%16.01%6.53%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.56%-0.56%14.27%3.68%15.13%5.73%6.73%10/31/1991
Max offer price-6.28%-6.28%7.73%1.65%13.77%5.10%6.45%
MSCI EAFE Index (Gross)0.77%0.77%18.06%7.72%16.55%7.01%n/a
MSCI EAFE Index (Net)0.66%0.66%17.56%7.21%16.01%6.53%n/a

Returns for less than one year are not annualized.

Class A shares have a maximum up-front sales charge of 5.75% and are subject to an annual distribution fee.

Expense ratio

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from March 28, 2014 to March 30, 2015. Please see the fee table in the Fund’s prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 03/31/2014
Share assets$104.2 million
Number of holdings45
Market cap (median)$28.67 billion
Market cap (weighted average)$51.76 billion
Portfolio turnover (last fiscal year)30%
P/E ratio (weighted average trailing 12 months) (view definition)14.94x
Beta (relative to MSCI EAFE Index (Gross)) (view definition)0.96
Annualized standard deviation, 3 years (view definition)16.80
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
International equities & depository receipts95.7%
Cash and cash equivalents4.1%
Domestic equities0.2%
Top 10 holdings as of 03/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Teva Pharmaceutical Industries Ltd.4.0%
Toyota Motor Corp.3.9%
Nordea Bank AB3.6%
Novartis AG3.6%
AXA S.A.3.5%
CGI Group Inc.3.3%
Vinci S.A.3.3%
Mitsubishi UFJ Financial Group Inc.3.0%
Total % Portfolio in Top 10 holdings36.4%

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

Top 10 countries as of 03/31/2014List excludes cash and cash equivalents.
Country% of portfolio
United Kingdom10.1%
Hong Kong3.4%
Distribution history - annual distributions (Class A)
Distributions ($ per share)
YearCapital gainsDividends
Ned Gray

Ned Gray, CFA

Chief Investment Officer — Global and International Value Equity

Start date on the Fund: May 2006

(View bio)

Todd Bassion

Todd A. Bassion, CFA

Portfolio Manager

Start date on the Fund: May 2006

(View bio)

You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Delaware Investments® Funds. More information about these and other discounts is available from your financial advisor, 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 price5.75%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.85%
Distribution and service (12b-1) fees0.25%
Other expenses0.37%
Total annual fund operating expenses1.47%
Fee waivers and expense reimbursements(0.01%)
Total annual fund operating expenses after fee waivers and expense reimbursements1.46%

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, taxes, interest, short sale and dividend interest expenses, brokerage fees, certain insurance costs, acquired fund fees and expenses, 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 1.21% of the Fund’s average daily net assets from March 28, 2014 through March 30, 2015. These waivers and reimbursements may only be terminated by agreement of the Manager or the Distributor, as applicable, and the Fund.

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Delaware International Value Equity Fund Quarterly commentary March 31, 2014 Class A (DEGIX)

Within the Fund

For the first quarter of 2014, Delaware International Value Equity Fund (Class A shares at net asset value) posted a slightly negative return that trailed that of its benchmark, the MSCI EAFE Index.

On a regional basis, market performance was strong in Europe ex–euro zone, and to a lesser extent in Asia Pacific ex–Japan and the euro zone, which offset weak performance in Japan and the United Kingdom. On a sector basis, performance was especially strong in utilities and healthcare while performance in telecommunications, consumer discretionary, and financials was weak.

Within the Fund’s portfolio, strong stock selection in Europe ex–euro zone was offset by adverse stock selection in the U.K., Japan, and the euro zone. The effects of overall regional allocation were positive due to a favorable overweight position in Europe ex–euro zone and an underweight position in Japan, which more than offset the negative effects of exposures to emerging markets and Canada. On a sector basis, strong stock selection in financials, healthcare, and consumer staples more than offset weak stock selection in telecommunications, energy, and consumer discretionary. An adverse underweight exposure to utilities offset the positive contribution from an underweight exposure to financials. Overall currency effect was negative due to an overweight exposure to the Canadian dollar and no exposure to the Australian dollar.

General outlook

The interplay of the business and economic cycles of various regions with the policy interventions intended to moderate or ameliorate them, as the case may be, remains critical in understanding global equity market dynamics. In the United States, where recovery from the global financial crisis is now well entrenched, the Federal Reserve is in early stages of withdrawing the strongly interventionist monetary stimulus that began in 2008. Japan saw an even more dramatic approach to monetary intervention, but at a much later date than in the U.S. Japan’s policy mix, which also includes a significant fiscal component as well as structural reform, remains unproven in its longer-term efficacy. In Europe, where crisis prevailed as recently as 2011, policy makers have taken a far less draconian approach, while still signaling their readiness to step up their activism should the circumstances call for it. With growth still slow and rates declining, there is increasing speculation that such measures will be required to stave off deflation.

The trajectory of these issues is hardly transparent, and with current monetary policy interventions having no real precedent, history is of limited use as a guide. The interaction of interest rates, underlying economic metrics, and equity market valuations helps define the risk parameters within which market opportunities may be found. We believe these factors remain generally supportive of market prospects. As bottom-up (company-by-company) stock pickers focused on individual company strengths and valuations, however, we do not rely on these macro measures as the key determinants of our decisions, important as they may be.

As global equity managers taking a contrarian approach to bottom-up stock selection, we believe we have some distinct advantages in addressing the chaos of economic volatility and policy uncertainty. The first of these is that our investable universe represents a broad variety of distinct regional economies and asynchronous valuation cycles from which to choose. The second is our conviction that cyclical volatility can create opportunities for those who understand and are prepared for it.

Finally, we believe that the identification of strong, competitive companies with solid managements and compelling valuations will continue to provide a reliable way to seize the potential opportunities that unpredictable market volatility will send our way.


The views expressed represent the Manager's assessment of the Fund and market environment as of the date indicated, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Information is as of the date indicated and subject to change.

Document must be used in its entirety.

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 and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

International investments entail risks not ordinarily associated with U.S. 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.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 04/23/2014)

Class APriceNet changeYTD
Max offer price$15.11n/an/a

Total net assets (as of 03/31/2014)

$323.6 million all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking279 / 376
1 year230 / 361
3 years276 / 317
5 years159 / 283
10 years66 / 120
Lipper classificationInternational Multi-Cap Core

(View Lipper disclosure)


Prospectuses and reports

Benchmark, peer group

MSCI EAFE (Europe, Australasia, Far East) Index (view)

Lipper International Multi-Cap Core Funds Average (view)

Additional information