Delaware U.S. Growth Fund


Delaware U.S. Growth Fund seeks long-term capital appreciation by investing in equity securities of companies we believe have the potential for sustainable free cash flow growth.


The Fund invests in stocks of medium- to large-sized companies that are believed to have long-term capital appreciation potential and are expected to grow faster than the U.S. economy.

Fund information
Inception date02/03/1994
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 (01/31/2016)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-5.47%2.73%12.46%12.91%7.14%7.51%02/03/1994
Average annual total return as of quarter-end (12/31/2015)
Current quarter1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)8.75%5.16%16.72%14.78%7.98%7.81%02/03/1994
Russell 1000 Growth Index7.32%5.67%16.83%13.53%8.53%n/a

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 01/31/2016
Number of holdings30
Market cap (median)$31.05 billion
Market cap (weighted average)$119.30 billion
Portfolio turnover (last fiscal year)40%
Beta, 3 years (relative to Russell 1000 Growth Index) (view definition)1.02
Annualized standard deviation, 3 years (view definition)12.13
Portfolio composition as of 01/31/2016Total may not equal 100% due to rounding.
Domestic equities94.0%
International equities & depositary receipts5.6%
Cash and cash equivalents0.5%
Top 10 holdings as of 01/31/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Visa Inc.5.9%
Allergan plc5.4%
Celgene Corp.5.0%
Microsoft Corp.4.8%
Crown Castle International Corp.4.5%
Liberty Interactive Corp. QVC Group4.5%
Walgreens Boots Alliance Inc.4.4%
MasterCard Inc.4.1%
Equinix Inc.4.1%
Total % Portfolio in Top 10 holdings47.6%
Top sectors as of 01/31/2016
List excludes cash and cash equivalents.
Sector% of portfolio
Financial services26.0%
Consumer discretionary17.6%
Consumer staples4.4%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ 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. 

Investment manager

Delaware Management Company, a series of Delaware Management Business Trust


Jackson Square Partners, LLC

Jeff VanHarte

Jeffrey S. Van Harte, CFA

Chairman, Chief Investment Officer — Jackson Square Partners, LLC

Start date on the Fund: April 2005

Years of industry experience: 35

(View bio)

Chris Bonavico

Christopher J. Bonavico, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: April 2005

Years of industry experience: 28

(View bio)

Chris Ericksen

Christopher M. Ericksen, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: September 2005

Years of industry experience: 21

(View bio)

Daniel J. Prislin, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: April 2005

Years of industry experience: 21

(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 fees0.57%
Distribution and service (12b-1) feesnone
Other expenses0.24%
Total annual fund operating expenses0.81%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.81%

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

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Delaware U.S. Growth Fund Quarterly commentary December 31, 2015

Within the Fund

For the fourth quarter of 2015, Delaware U.S. Growth Fund (Institutional Class shares and Class A shares at net asset value) outperformed its benchmark, the Russell 1000® Growth Index. On a sector level, strong relative performance in the technology and financial services sectors was partially offset by weak relative performance in the healthcare and, to a lesser extent, the consumer staples sectors.

Baidu contributed to the Fund’s performance during the quarter. The company reported relatively strong financial results and also announced its plan to enter China’s online banking industry through a strategic partnership to potentially capitalize on Baidu’s massive existing user base. While the company continues to show progress in its mobile-related services, its heavy capital investments into various business segments and its attempt to expand geographically should continue to affect margins and earnings in the near term. We agree with Baidu’s heavy investment spending strategy and continue to believe the company stands to benefit significantly from the proliferation of wireless and streaming technologies in China, making the company’s services even more accessible. We feel the company has upside potential given the sheer size of the Chinese market population, along with ancillary businesses that are becoming significant drivers of growth (including social media, multimedia sharing services, and mobile search).

TripAdvisor was a contributor to performance during the quarter, despite reporting financial results that fell short of consensus estimates. This was driven, in part, by headwinds that resulted from the launch of its new “instant booking” platform. The stock rose sharply after a deal was announced between the company and Priceline to integrate a portion of Priceline’s hotel inventory into TripAdvisor’s “instant booking” platform. While the company has a massive amount of user traffic that has been historically under-monetized, it is making a strategic push to better monetize this business through an “instant booking” button that allows consumers to reserve directly on TripAdvisor’s site rather than losing customers to competitor sites. We feel this strategic push and the announced partnership with Priceline (among others) could create meaningful growth for the company going forward.

Equinix also contributed to performance during the quarter. The stock experienced relative strength despite reporting somewhat mixed financial results, as the company continues to benefit from significant opportunities associated with cloud computing and its disruption in the information technology supply chain. Increased globalization, combined with the need for a secure and accessible network to meet the needs of a dispersed user base, seems to be creating significant demand for a company like Equinix. We believe its innovative product offerings could make the company well positioned in a technology spending environment that is focused on addressing the needs of enterprises struggling to maintain the highest level of network performance and quality of service for global users.

Valeant Pharmaceuticals detracted from the Fund’s performance during the quarter. The company was meaningfully affected by allegations of wrongdoing at its specialty pharmacy partner, Philidor. Investors’ lack of familiarity with this relationship left the stock vulnerable when questions were raised, and a short seller’s analogy to Enron put incremental pressure on the stock and raised investor scrutiny. Our best assessment at this point is that Philidor was a relatively small part of Valeant’s total business. Furthermore, third-quarter cash generation was positive and seemed to indicate that the company is what we thought it was — a cash-generating business with solid medium-term growth prospects. It is now trading at a very high free cash-flow-yield on our 2016 projections, despite revising those projections downward to reflect the transition away from Philidor and to its new pharmacy partner, Walgreens. We also note that the shareholder base — and board — include large owners with an interest in reaching the right economic outcome. Considering both risk and reward, and the remaining unknowns, we believe we have the stock appropriately weighted.

Qualcomm was a detractor from performance during the quarter. The company's patent licensing business reported lingering negotiating issues with handset makers in China and a new flare-up in South Korea. While these issues continue to affect sentiment, we do not believe they materially threaten the company’s business model over the long term. We also believe its mobile chip business should rebound, as it recovers from 2015 product cycle issues that are unlikely to recur. Additionally, we are encouraged by the aggressive steps that management is taking to run the business in a much more efficient way, which should positively affect not only free cash generation but also capital structure.

Electronic Arts also detracted from performance during the quarter. The stock experienced weakness after a key retailer reported lower-than-expected sales for the company’s newly released flagship holiday video game, Star Wars Battlefront. We are not overly concerned with this news given that the report does not take into account full game digital downloads, which is an increasingly meaningful component of sales. We continue to believe the company should continue to benefit from upcoming and established game franchises, and from its growth within the digital downloads and mobile phone gaming channels, which should be increasingly important for the company's growth moving forward.


Despite positive absolute returns in the equity market during recent years, we believe the ever-changing market sentiment demonstrates that there are more than just fundamental factors affecting stock prices. A lack of confidence in the fundamental outlook suggests to us that many investors appear to be struggling with accurately predicting the pace of global economic recovery and are assessing external factors that threaten economic fundamentals (for example, central bank actions and fiscal policy debates around the globe). While some fundamentals in various geographies may be trending in a positive direction (from a very low base during the global financial crisis in 2008–2009), we don’t believe we are entering into a typical post-recessionary global boom cycle. Rather, we believe the lingering effects of the credit crisis could lead to moderate growth, at best, for the intermediate term. In such a tenuous environment, we believe the quality of a company’s business model, competitive position, and management may prove to be of utmost importance.

Regardless of the economic outcome, we remain consistent in our long-term investment philosophy: We want to own what we view as strong secular-growth companies with solid business models and competitive positions that we believe can grow market share and have the potential to deliver shareholder value in a variety of market environments.


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.

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

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

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

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.

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 02/08/2016)

Institutional ClassPriceNet changeYTD
Max offer price$22.20n/an/a

Total net assets (as of 01/31/2016)

$3.4 billion all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 01/31/2016)
RatingNo. of funds
3 Yrs41546
5 Yrs51325
10 Yrs4936
Morningstar categoryLarge Growth

(View Morningstar disclosure)

Lipper ranking (as of 01/31/2016)

YTD ranking120 / 731
1 year102 / 668
3 years200 / 614
5 years30 / 543
10 years113 / 390
Lipper classificationLarge-Cap Growth Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 1000® Growth Index (view definition)

Lipper Large-Cap Growth Funds Average (view definition)

Additional information