2015 Investment Outlooks

Read all outlooks


Read compilations of our teams' perspectives on some of the major investment themes that could impact markets in 2015.

Divergence

The performance of domestic stocks handily outpaced that of most developed and developing markets in 2014, thanks to the relatively sanguine economic environment within the United States. Read about what this disparity may mean for markets in the new year.

Read more

Market expectations

Valuations, interest rates, tax reform, or any number of other factors could impact performance in 2015. Download our brief summaries of economic and market performance expectations across a number of asset classes for the new year.

Read more

Rising rates

Although a move in nominal interest rates in 2015 still seems contingent on improving economic data, it could affect a range of investment sectors. Read about which sectors might benefit from an orderly rise in interest rates, and which may be losers.

Read more

Valuations

Investors often disagree about whether a market is fully valued. Read our perspective on what current valuations within the large- and small-cap markets may mean for performance within both markets in 2015 and beyond.

Read more

Fortunately, small-cap valuations have declined at a time when both corporate conditions and the economic environment remain supportive to small-cap stock performance. One example is the earnings of small-cap companies, which have outpaced those of large-caps for each of the past five quarters (source: Russell Investments, data ended the third quarter of 2014).

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Francis X. Morris

Francis X. Morris

Chief Investment Officer — Core Equity

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

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.

While fundamentals in various geographies may be trending in a positive direction, we don’t believe we are entering a typical post-recessionary global boom cycle.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Liu-Er Chen

Liu-Er Chen, CFA

Chief Investment Officer — Emerging Markets and Healthcare

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Because the Funds expect to hold a concentrated portfolio of a limited number of securities, the Fund's risk is increased because each investment has a greater effect on the Fund's overall performance.

We believe that overall global liquidity conditions will remain supportive, but as we have witnessed, any indication of monetary tightening from developed-market central banks can swiftly affect emerging market capital flows.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Liu-Er Chen

Liu-Er Chen, CFA

Chief Investment Officer — Emerging Markets and Healthcare

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

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.

One of the key issues for fixed income investors will be the timing of interest rate moves and the trajectory of the rate path. As it stands today, we think the answer will be complicated by a combination of a weaker economic recovery and a litany of geopolitical events.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Joseph R. Baxter

Joseph R. Baxter

Head of Municipal Bond Department,
Senior Portfolio Manager

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

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. These funds may also be subject to prepayment risk (the risk that the principal of a fixed income security may be prepaid prior to maturity), potentially forcing a fund to reinvest that money at a lower interest rate.

Funds that invest primarily in one state may be more susceptible to economic, regulatory, and other factors of that state than funds that invest more broadly.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

The outlook for fixed income markets appears positive from the perspective of issuer-level fundamentals, though macro-level risks will remain a critical part of the picture.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Joseph R. Baxter

Paul A. Matlack, CFA

Senior Portfolio Manager, Fixed Income Strategist

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

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.

Certain fixed income securities are subject to prepayment risk, the risk that the principal may be prepaid prior to maturity, potentially forcing the bond owner to reinvest that money at a lower interest rate.

As global stock pickers, what we find intriguing is this: in an interconnected global market, domicile does not limit opportunity. If a European multinational trades at a recessionary valuation multiple but has competitive positions in the world’s best growth markets, that company’s investors can enjoy the benefits of both valuation and strong fundamentals.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Ned Gray

Ned Gray, CFA

Chief Investment Officer — Global and International Value Equity

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

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.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

Over [the next three to five years], we are cautiously optimistic about the prospects for equities, especially those of
higher-quality companies that are trading well below their long-term average valuation multiples... Longer term, it’s hard for us to envision robust returns for stocks because of the broad market’s extraordinary rise over the last five-and-a-half years and, more importantly, its full valuation.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Ty Nutt

Ty Nutt

Senior Portfolio Manager, Team Leader

(View bio)

Carl D. Rice

Carl D. Rice, CFA

Senior Investment Specialist

(View bio)

 

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

Value investing focuses on buying stocks that are trading at bargain prices based on fundamental analysis, then holding them until they become fully valued. Typically, value investors select securities with lower-than-average price-to-book or price-to-earnings ratios and/or high dividend yields.

We don't want our perspective to be whitewashed by a blizzard of negative headlines. Instead, we pursue a clear understanding of the facts on the ground, recognizing that each market segment we cover has its own characteristics and its own responses to different risk factors.

Read the Global Real Estate Securities outlook Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Babak Zenouzi

Babak "Bob" Zenouzi

Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

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.

We continue to focus on finding attractively valued companies that have opportunities to return free cash flow to shareholders. While somewhat agnostic between share buybacks and dividends, we expect that, with dividend payout ratios below their historical averages, there is ample opportunity for companies to increase their dividends.

Read the outlook

Learn more about the equity and fixed income investment teams at Delaware Investments.
Christopher S. Beck

Christopher S. Beck, CFA

Chief Investment Officer — Small-Cap Value / Mid-Cap Value Equity

(View bio)

The views expressed represent the Manager’s assessment of the market environment as of December 2014 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. Views are subject to change without notice and may not reflect the Manager’s current views.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Certain statements made here are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “project,” “will,” “shall,” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA is claimed hereunder.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.

The payout of dividends is not guaranteed. While dividend payments can provide an important income cushion, they should not be construed as having the same level of risk as interest payments received from bonds. Generally speaking, dividend income can be more volatile than interest income.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

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.

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds' prospectuses and their summary prospectuses, which may be obtained by visiting our fund literature page or calling 800 362-7500. Investors should read the prospectuses and the summary prospectuses carefully before investing.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.