The Emerging Markets Portfolio II

Objective

The Emerging Markets Portfolio II seeks long-term capital appreciation.

Strategy

The Portfolio invests primarily in a broad range of equity securities of companies located in emerging market countries. Emerging market countries include those currently considered to be developing by the World Bank, the United Nations or the countries’ governments. These countries typically are located in the Asia-Pacific region, Eastern Europe, the Middle East, Central and South America, and Africa. The Portfolio may invest in companies of any size. Under normal market conditions, at least 80% of the Portfolio’s net assets, plus any borrowings for investments purposes, will be invested in equity securities of issuers from countries whose economies are considered to be emerging (80% policy). The Portfolio’s 80% policy can be changed without shareholder approval. However, shareholders would be given at least 60 days’ notice prior to any such change.

The Portfolio may invest in a broad range of equity securities, including common or ordinary stocks, preferred stocks, and securities convertible into common or ordinary stocks. The Portfolio may also invest in foreign companies through sponsored or unsponsored depositary receipts, which are receipts typically issued by a bank or trust company evidencing ownership of underlying securities issued by a foreign company. The Portfolio may invest in securities issued in any currency and may hold foreign currency. The Portfolio invests primarily in equity securities of issuers from emerging foreign countries. These countries are generally recognized to be emerging or developing countries by the international financial community.

The portfolio manager believes that although market price and intrinsic business value are positively correlated in the long run, short-term divergences can emerge. The Portfolio seeks to take advantage of these divergences through a fundamental, bottom-up approach. The Portfolio invests in securities of companies with sustainable franchises when they are trading at a discount to the manager’s intrinsic value estimate for that security.

The Portfolio defines sustainable franchises as those companies with potential to earn excess returns above their cost of capital over the long run. Sustainability analysis involves identification of a company’s source of competitive advantage and the ability of its management to maximize its return potential. We prefer companies with large market opportunities in which to deploy capital, providing opportunities to grow faster than the overall economy.

Intrinsic value assessment is quantitatively determined through a variety of valuation methods including discounted cash flow, replacement cost, private market transaction, and multiples analysis.

The Portfolio may invest more than 25% of its total assets in the securities of issuers located in the same country. The Portfolio may invest up to 10% of its net assets in real estate investment trusts.

Portfolio information
Inception date06/23/2010
Dividends paid*Annually
Capital gains paid*December

*If any.

Portfolio identifiers
NASDAQDPEGX
CUSIP246248470
Investment minimums
Initial investment**$1,000,000
Subsequent InvestmentsNo minimum

**In the aggregate across all Portfolios of the Delaware Pooled Trust.

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)-2.00%6.90%-1.07%n/an/a4.66%06/23/2010
MSCI Emerging Markets Index (Gross)-0.37%-1.07%-2.54%n/an/an/a
MSCI Emerging Markets Index (Net)-0.43%-1.42%-2.86%n/an/an/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-2.00%-2.00%6.90%-1.07%n/an/a4.66%06/23/2010
MSCI Emerging Markets Index (Gross)-0.37%-0.37%-1.07%-2.54%n/an/an/a
MSCI Emerging Markets Index (Net)-0.43%-0.43%-1.42%-2.86%n/an/an/a

Returns for less than one year are not annualized.

Expense ratio
Gross1.36%
Net1.20%

Net expense ratio reflects contractual waivers and/or expense reimbursements from Feb. 27, 2014 to Feb. 27, 2015. Please see the fee table in the Portfolio's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2014-2.00%n/an/an/an/a
20131.26%-6.02%12.68%3.01%10.47%
201211.52%-11.03%7.92%6.86%14.42%
20112.89%-2.71%-24.40%6.28%-19.58%
2010n/an/a15.53%8.96%n/a
Portfolio characteristics - as of 03/31/2014
Share assets$41.2 million
Number of holdings120
Market cap (median)$10.92 billion
Market cap (weighted average)$37.16 billion
Portfolio turnover (last fiscal year)11%
P/E ratio (weighted average trailing 12 months) (view definition)19.17x
Beta (relative to MSCI Emerging Markets Index (Gross)) (view definition)0.97
Annualized standard deviation, 3 years (view definition)19.65
Top 10 holdings as of 03/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Baidu Inc.5.5%
Tim Participacoes S.A.4.6%
Reliance Industries Ltd.4.1%
Samsung Electronics Co. Ltd.3.9%
SK Telecom Co. Ltd.3.0%
Yahoo! Inc.2.6%
Teva Pharmaceutical Industries Ltd.2.6%
Sohu.com Inc.2.5%
Grupo Televisa SAB2.4%
KB Financial Group Inc.2.4%
Total % Portfolio in Top 10 holdings33.6%
Top 10 countries as of 03/31/2014List excludes cash and cash equivalents.
Country% of portfolio
Korea20.3%
Brazil17.9%
China17.8%
India7.7%
Mexico7.3%
Russia6.4%
Taiwan5.0%
United States4.4%
Israel2.6%
Poland1.9%
Distribution history - annual distributions (Original Class)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.000
20130.0370.092
20120.0000.041
20110.2940.128
20100.0740.026
20090.0000.000
20080.0000.000
20070.0000.000
20060.0000.000
20050.0000.000
20040.0000.000
Liu-Er Chen

Liu-Er Chen, CFA

Chief Investment Officer — Emerging Markets and Healthcare

Start date on the Fund: June 2010

(View bio)


The following table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Purchase reimbursement feesnone
Redemption reimbursement feesnone
Annual portfolio operating expenses
Management fees1.00%
Distribution and service (12b-1) feesnone
Other expenses0.36%
Total annual portfolio operating expenses1.36%
Fee waivers and expense reimbursements(0.16%)
Total annual portfolio operating expenses after fee waivers and expense reimbursements1.20%

1The Portfolio’s investment manager, Delaware Management Company (Manager), is contractually waiving its investment advisory fees and/or paying Portfolio 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) to the extent necessary to prevent total annual portfolio operating expenses from exceeding 1.20% of the Portfolio’s average daily net assets from Feb. 27, 2014 through Feb. 27, 2015. These waivers and reimbursements may only be terminated by agreement of the Manager and the Portfolio.

Carefully consider the Portfolio's investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Portfolio's prospectus, if available, its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 231-8002. Investors should read the prospectus, and, if available, 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.

If and when the Portfolio invests in forward foreign currency contracts or use other investments to hedge against currency risks, the Portfolio will be subject to special risks, including counterparty risk.

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 Portfolio may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Portfolio may be prepaid prior to maturity, potentially forcing the Portfolio to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

The Portfolio may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

The Portfolio is distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 04/23/2014)

Original ClassPriceNet changeYTD
NAV$9.39-0.05-0.95%
Max offer price$9.39n/an/a

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

$41.2 million all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking555 / 740
1 year75 / 630
3 years135 / 423
5 yearsn/a
10 yearsn/a
Lipper classificationEmerging Markets Funds

(View Lipper disclosure)

Benchmark, peer group

MSCI Emerging Markets Index (view)

Lipper Emerging Market Funds Average (view)

Additional information