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 date11/09/1992
Dividends paid (if any)Annually
Capital gains paid (if any)November or December
Fund identifiers

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 (09/30/2015)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-2.51%-9.12%4.85%2.71%2.19%6.57%11/09/1992
Average annual total return as of quarter-end (09/30/2015)
Current quarterYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-8.59%-2.51%-9.12%4.85%2.71%2.19%6.57%11/09/1992

Returns for less than one year are not annualized.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Expense ratio
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return

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

Portfolio characteristics - as of 09/30/2015
Number of holdings49
Market cap (median)$20.64 billion
Market cap (weighted average)$48.41 billion
Portfolio turnover (last fiscal year)26%
Beta, 3 years (relative to MSCI EAFE Index (Gross)) (view definition)0.97
Annualized standard deviation, 3 years (view definition)12.17
Portfolio composition as of 09/30/2015Total may not equal 100% due to rounding.
International equities & depositary receipts97.7%
Cash and cash equivalents2.3%
Top 10 holdings as of 09/30/2015
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Teva Pharmaceutical Industries Ltd.4.1%
Mitsubishi UFJ Financial Group Inc.3.8%
AXA S.A.3.8%
Nippon Telegraph & Telephone Corp.3.7%
Novartis AG3.7%
Toyota Motor Corp.3.4%
Nordea Bank AB3.3%
Yue Yuen Industrial Holdings Ltd.3.1%
CGI Group Inc.2.9%
Total % Portfolio in Top 10 holdings35.3%

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

Top 10 countries as of 09/30/2015List excludes cash and cash equivalents.
Country% of portfolio
United Kingdom11.5%
Hong Kong4.9%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment

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 (if any) 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. 

Ned Gray

Ned A. Gray, CFA

Senior Vice President, Chief Investment Officer — Global and International Value Equity

Start date on the Fund: May 2006

Years of industry experience: 29

(View bio)

Todd Bassion

Todd A. Bassion, CFA

Vice President, Portfolio Manager

Start date on the Fund: May 2006

Years of industry experience: 15

(View bio)

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

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 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 fees0.85%
Distribution and service (12b-1) feesnone
Other expenses0.32%
Total annual fund operating expenses1.17%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements1.17%

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, acquired fund fees and expenses, 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 1.21% of the Fund’s average daily net assets from March 30, 2015 through March 30, 2016. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

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Delaware International Value Equity Fund Quarterly commentary June 30, 2015

Economic Developments/Market Drivers


For the quarter ended June 30, 2015, Delaware International Value Equity Fund outperformed its benchmark, the MSCI EAFE Index (net), primarily due to strong stock selection. Regional stock selection was positive, with strength in Japan and the eurozone more than offsetting weakness in the U.K. and Europe ex-euro zone. Overall regional allocation was negative due to unfavorable exposure to Canada and emerging markets. Stock selection on a sector basis was strong in telecommunications, financials, and health care, which more than offset adverse stock selection in consumer staples. Net currency effect was negative, primarily due to an underweight exposure to the British pound and exposure to the U.S. dollar.

Prospective global market drivers and general outlook

Given the subdued and inconsistent nature of global economic growth, and the prominence and variety of reversals across risk factors, it is no great surprise that equity markets failed to sustain the broad strength that marked the first quarter of the year. We believe that prospective returns, though, will likely be shaped by the future evolution of these economic drivers as well as their interaction with market valuations.

In Europe, relative high valuations on trailing earnings continue to reflect in part the cyclical weakness that still prevails. Returns on equity remain in the lower band of the historical range, and normalization of profitability under a scenario of economic recovery could support stock prices even without further expansion of valuations. In Japan, as was the case at the end of the prior quarter, a steep valuation discount to global norms on book value suggests there is room for further gains if the corresponding lag in returns on equity continues to close. Such a transition could play out over a period of years, and though progress on this front is among the targets of the government reform plans, success is not assured.

In contrast to Europe and Japan, U.S. companies are already among the most profitable and highly valued in the world. Underlying secular growth and the security of a relatively business-friendly regulatory regime may justify some measure of a valuation premium, but these qualities could be overshadowed in the event of an accelerating cyclical recovery elsewhere. Though valuations are high relative to other alternatives, they do not deviate meaningfully from their long-term range, and if relatively benign economic conditions persist, low prevailing interest rates could justify their further expansion.

Finally, emerging markets have achieved and will likely retain a magnitude sufficient to exert a meaningful influence on all other economies and the companies that operate within them. The changes in commodity and currency markets over the past year are obvious manifestations of this influence, while others are more subtle. While some may lament the slower growth that has come to characterize developed economies, we would point out that the rapid expansion in the emerging world engenders correspondingly greater dislocations and adjustments, and along with them, economic and market volatility.

For us, these distinctive regional developments constitute the economic ecosystem within which individual companies must operate. As a guide to investment policy, we believe that prediction of the complex interaction of economic trends is a daunting enterprise, but that strength and adaptability can be recognized at the company level, and it is these qualities that will help facilitate long-term success under a variety of economic outcomes that may be difficult to envision today. Coupled with the rigor of compelling valuation, we find the identification of these companies is likely to be the surest route to success.


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 800 362-7500. 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.

All third-party marks cited are the property of their respective owners.

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 10/02/2015)

Institutional ClassPriceNet changeYTD
Max offer price$12.66n/an/a

Total net assets (as of 09/30/2015)

$244.1 million all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 08/31/2015)
RatingNo. of funds
3 Yrs3288
5 Yrs3253
10 Yrs3124
Morningstar categoryForeign Large Value

(View Morningstar disclosure)

Lipper ranking (as of 08/31/2015)

YTD ranking26 / 191
1 year65 / 179
3 years63 / 142
5 years50 / 118
10 years35 / 71
Lipper classificationInternational Multi-Cap Value

(View Lipper disclosure)

Benchmark, peer group

MSCI EAFE Index (view definition)

Lipper International Multi-Cap Value Funds Average (view definition)

Additional information