The Select 20 Portfolio

Objective

The Select 20 Portfolio seeks long-term capital appreciation.

Strategy

The Portfolio seeks to achieve its objective by investing in a portfolio of 20 securities. The Portfolio will invest in no fewer than 15 and no more than 25 equity securities. The Portfolio is considered “nondiversified” as defined in the 1940 Act, which means that it may invest in a smaller number of issuers than a diversified mutual fund.

We invest primarily in common stocks of companies that we believe have long-term capital appreciation potential and are expected to grow faster than the U.S. economy. We consider companies of any size or market capitalization. Using a bottom-up approach, we seek to select securities of companies that have large market opportunities. Companies that have large market opportunities are those that, in our opinion, may have a large demand or market for their goods or services. We also consider a company’s operational efficiencies, management plans for capital allocation, and the company’s shareholder orientation.

We research individual companies and analyze economic and market conditions, seeking to identify the securities or market sectors that we think are the best investments for the Portfolio. Specifically, we look for structural changes in the economy, industry, or product cycle changes, or changes in management, targeting those companies that can best capitalize on such changes. The following is a description of how the portfolio managers pursue the Portfolio’s investment goals.

We strive to identify companies that offer the potential for long-term price appreciation because they are likely to experience sustainable free cash flow growth. Using a bottom-up approach, we look for companies that:

  • have attractive end market potential or dominance of a profitable niche market, dominant business models, and strong cash flow generation;
  • demonstrate operational and scale efficiencies;
  • have demonstrated expertise for capital allocation; or
  • have clear shareholder oriented governance and compensation policies.

All of these factors give us insight into the outlook for a company, helping us to identify companies poised for sustainable free cash flow growth. We believe that sustainable free cash flow growth, if it occurs, may result in price appreciation for the company’s stock.

We maintain a diversified portfolio, typically holding a mix of different stocks, representing a wide array of industries and a mix of small-, medium-, and large-size companies.

Portfolio information
Inception date03/31/2000
Dividends paid*Annually
Capital gains paid*December

*If any.

Portfolio identifiers
NASDAQDPCEX
CUSIP246248645
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)0.50%19.04%15.45%22.69%7.26%1.52%03/31/2000
Russell 3000 Growth Index1.07%23.53%14.53%21.94%7.95%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.50%0.50%19.04%15.45%22.69%7.26%1.52%03/31/2000
Russell 3000 Growth Index1.07%1.07%23.53%14.53%21.94%7.95%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross0.85%
Net0.85%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20140.50%n/an/an/an/a
20136.40%-0.23%8.11%9.82%26.03%
201214.90%-6.84%6.70%-0.09%14.10%
20117.58%1.62%-7.51%13.31%14.57%
20103.82%-10.53%14.12%8.76%15.30%
2009-0.26%18.57%13.42%8.28%45.24%
2008-5.79%-4.82%-15.36%-21.91%-40.73%
20070.34%3.72%7.18%-2.74%8.49%
20063.94%-7.41%-2.31%7.29%0.86%
2005-6.06%4.49%3.93%5.04%7.16%
20043.99%-2.49%-5.12%13.07%8.78%
Portfolio characteristics - as of 03/31/2014
Share assets$107.9 million
Number of holdings20
Market cap (median)$33.10 billion
Market cap (weighted average)$87.24 billion
Portfolio turnover (last fiscal year)46%
P/E ratio (weighted average FY1) (view definition)19.21x
Beta (relative to Russell 3000 Growth Index) (view definition)0.84
Annualized standard deviation, 3 years (view definition)12.11
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
Visa Inc.7.4%
Google Inc.6.1%
Microsoft Corp.6.0%
QUALCOMM Inc.5.9%
Adobe Systems Inc.5.8%
EOG Resources Inc.5.6%
j2 Global Inc.5.3%
Liberty Interactive Corp.5.1%
Crown Castle International Corp.5.1%
Allergan Inc.5.1%
Total % Portfolio in Top 10 holdings57.4%

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

Top sectors as of 03/31/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Technology35.8%
Financial Services21.1%
Consumer Discretionary18.1%
Health Care8.4%
Energy7.7%
Utilities5.3%
Distribution history - annual distributions (Original Class)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.000
20130.1460.006
20120.1280.016
20110.0000.002
20100.0000.000
20090.0000.000
20080.0000.007
20070.0000.000
20060.0000.000
20050.0000.000
20040.0000.000
Chris Bonavico

Christopher J. Bonavico, CFA

Senior Portfolio Manager, Equity Analyst

Start date on the Fund: September 2005

(View bio)


Ken Broad

Kenneth F. Broad, CFA

Senior Portfolio Manager, Equity Analyst

Start date on the Fund: September 2005

(View bio)


Daniel J. Prislin, CFA

Senior Portfolio Manager, Equity Analyst

Start date on the Fund: September 2005

(View bio)


Jeff VanHarte

Jeffrey S. Van Harte, CFA

Chief Investment Officer — Focus Growth Equity

Start date on the Fund: September 2005

(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 fees0.75%
Distribution and service (12b-1) feesnone
Other expenses0.10%
Total annual portfolio operating expenses0.85%
Fee waivers and expense reimbursementsnone
Total annual portfolio operating expenses after fee waivers and expense reimbursements0.85%

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 0.89% 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.

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

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

“Nondiversified” portfolios may allocate more of their net assets to investments in single securities than “diversified” Portfolios. Resulting adverse effects may subject these Portfolios to greater risks and volatility.

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 04/15/2014)

Original ClassPriceNet changeYTD
NAV$9.900.08-1.88%
Max offer price$9.90n/an/a

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

$107.9 million all share classes

Lipper ranking (as of 03/31/2014)

YTD ranking334 / 576
1 year486 / 547
3 years77 / 471
5 years114 / 416
10 years175 / 273
Lipper classificationMulti-Cap Growth Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 3000® Growth Index (view)

Lipper Multi-Cap Growth Funds Average (view)

Additional information