Delaware Foundation® Moderate Allocation Fund

Objective

Delaware Foundation Moderate Allocation Fund seeks capital appreciation with current income as a secondary objective.

Strategy

The Fund invests in a combination of underlying securities, using an active allocation approach and representing a variety of asset classes and investment styles that are managed by the advisor.

Fund information
Inception date12/31/1997
Dividends paid (if any)Quarterly
Capital gains paid (if any)December
Fund identifiers
NASDAQDFFIX
CUSIP245918800

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 (06/30/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)5.45%16.28%8.52%12.23%7.08%5.61%12/31/1997
Barclays U.S. Aggregate Index3.93%4.37%3.66%4.85%4.93%n/a
S&P 500 Index7.14%24.61%16.58%18.83%7.78%n/a
Average annual total return as of quarter-end (06/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)4.15%5.45%16.28%8.52%12.23%7.08%5.61%12/31/1997
Barclays U.S. Aggregate Index2.04%3.93%4.37%3.66%4.85%4.93%n/a
S&P 500 Index5.23%7.14%24.61%16.58%18.83%7.78%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross0.97%
Net0.90%

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

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20141.25%4.15%n/an/an/a
20134.87%-1.35%5.39%4.63%14.07%
20127.29%-2.31%4.74%1.73%11.67%
20113.87%1.41%-10.52%6.33%0.22%
20103.35%-6.43%9.71%4.96%11.36%
2009-5.37%13.72%13.22%4.87%27.78%
2008-5.50%-2.91%-7.33%-8.28%-22.01%
20071.14%3.75%1.27%-1.28%4.91%
20063.27%-1.78%3.62%4.84%10.19%
2005-0.53%1.50%3.59%1.43%6.08%
20041.85%-0.34%0.57%7.52%9.75%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Portfolio characteristics - as of 06/30/2014
Share assets$82.3 million
Number of holdings1,390
Portfolio turnover (last fiscal year)135%
Annualized standard deviation, 3 years (view definition)8.62
SEC 30-day yield with waiver (view definition)1.72%
SEC 30-day yield without waiver (view definition)1.71%
Asset allocations* (as of June 30, 2014)
  Range Strategic policy weight Actual**
Equity asset class (total) 40-70% 60% 61.1%
U.S. equity asset class 10-40% 30% 31.6%
U.S. Large Cap Core     6.8%
U.S. Large Cap Growth     10.2%
U.S Large Cap Value     10.3%
U.S. Small Cap Core     4.3%
International equity asset class 10-40% 22.5% 18.9%
International Growth     8.3%
International Value     10.6%
Global real estate equity asset class 0-15% 0% 1.9%
U.S. real estate     1.9%
Global ex-U.S. real estate     0.0%
Emerging markets asset class 0-15% 7.5% 8.7%
Fixed income asset class (total) 30-60% 40% 39.2%
Diversified fixed income asset class 30-60% 40% 39.2%
Diversified fixed income 20-50% 38% 38.8%
Money market / cash equivalents 0-15% 2% 0.4%

*The percentages listed in this chart for "Range," "Strategic policy weight," and "Actual" represent the proportion of the Fund's assets allocated to the portfolio manager responsible for investing in a particular asset class or investment style. Each individual manager is responsible for determining how his or her assets are invested, subject to the constraints outlined in the Fund's prospectus. The "Range" and "Strategic policy weight" are as of the prospectus date. 

**Total may not equal 100% due to rounding.

Top 10 holdings as of 06/30/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Teva Pharmaceutical Industries Ltd.0.7%
Celgene Corp.0.7%
EOG Resources Inc.0.7%
Microsoft Corp.0.6%
QUALCOMM Inc.0.6%
Walgreen Co.0.5%
Visa Inc.0.5%
Toyota Motor Corp.0.5%
Allergan Inc.0.5%
Novartis AG0.5%
Total % Portfolio in Top 10 holdings5.8%

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

Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20140.0000.154
20130.6520.184
20120.0000.213
20110.0000.257
20100.0000.236
20090.0000.244
20080.0690.144
20070.2020.308
20060.0290.229
20050.0000.141
20040.0000.145

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Jackson Square Partners, LLC (JSP) is the sub-advisor to the Fund’s U.S. large-cap growth sleeve. As sub-advisor, JSP is responsible for day-to-day management of its portion of the Fund’s assets. Although JSP serves as sub-advisor, the investment manager, Delaware Management Company, a series of Delaware Management Business Trust, has ultimate responsibility for all investment advisory services with JSP.

Mike Hogan

Michael J. Hogan, CFA

Executive Vice President, Head of Equity Investments

Start date on the Fund: June 2007

(View bio)


Paul Grillo

Paul Grillo, CFA

Senior Vice President, Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: September 2008

(View bio)


Sharon Hill

Sharon Hill, Ph.D.

Senior Vice President, Head of Equity Quantitative Research and Analytics

Start date on the Fund: September 2008

(View bio)


Francis X. Morris

Francis X. Morris 

Senior Vice President, Chief Investment Officer – Core Equity

Start date on the Fund: May 2004

(View bio)


Bob Zenouzi

Bob Zenouzi 

Senior Vice President, Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

Start date on the Fund: September 2008

(View bio)


Investment manager

Delaware Management Company, a series of Delaware Management Business Trust

Sub-advisors

Jackson Square Partners, LLC


Jeff VanHarte

Jeffrey S. Van Harte, CFA

Chairman, Chief Investment Officer — Jackson Square Partners, LLC

Start date on the Fund: May 2014

(View bio)


Chris Bonavico

Christopher J. Bonavico, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: May 2014

(View bio)


Chris Ericksen

Christopher M. Ericksen, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: May 2014

(View bio)


Daniel J. Prislin, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: May 2014

(View bio)


Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Jackson Square Partners, LLC (JSP) is the sub-advisor to the Fund’s U.S. large-cap growth sleeve. As sub-advisor, JSP is responsible for day-to-day management of its portion of the Fund’s assets. Although JSP serves as sub-advisor, the investment manager, Delaware Management Company, a series of Delaware Management Business Trust, has ultimate responsibility for all investment advisory services with JSP.

The following table 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 pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.65%
Distribution and service (12b-1) feesnone
Other expenses0.32%
Total annual fund operating expenses0.97%
Fee waivers and expense reimbursements(0.07%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.90%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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, 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 0.90% of the Fund's average daily net assets from Jan. 28, 2014 through Jan. 28, 2015. These waivers and reimbursements may only be terminated by agreement of the Manager or Distributor, as applicable, and the Fund.

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 800 362-7500. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

This Fund is subject to the same risks as the underlying styles in which it invests.

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

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

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

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.

The Fund may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

Risk controls and asset allocation models do not promise any level of performance or guarantee against loss of principal. Each Fund has a different level of risk.

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

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.

The Funds are 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 07/31/2014)

Institutional ClassPriceNet changeYTD
NAV$12.81-0.144.23%
Max offer price$12.81n/an/a

Total net assets (as of 06/30/2014)

$343.5 million all share classes

Lipper ranking (as of 06/30/2014)

YTD ranking184 / 541
1 year127 / 524
3 years230 / 447
5 years124 / 387
10 years47 / 256
Lipper classificationMixed-Asset Target Allocation Moderate

(View Lipper disclosure)

Benchmark, peer group

S&P 500® Index (view)

Barclays U.S. Aggregate Index (view)

Lipper Mixed-Asset Target Allocation Moderate Funds Average (view)

Additional information