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 (10/31/2015)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)4.65%7.90%17.14%15.76%8.36%7.85%02/03/1994
Russell 1000 Growth Index6.94%9.18%17.94%15.30%9.09%n/a
Average annual total return as of quarter-end (09/30/2015)
Last quarter1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-7.24%3.07%13.24%14.97%7.47%7.49%02/03/1994
Russell 1000 Growth Index-5.29%3.17%13.61%14.47%8.09%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 10/31/2015
Number of holdings30
Market cap (median)$38.75 billion
Market cap (weighted average)$116.02 billion
Portfolio turnover (last fiscal year)25%
Beta, 3 years (relative to Russell 1000 Growth Index) (view definition)1.05
Annualized standard deviation, 3 years (view definition)11.76
Portfolio composition as of 10/31/2015Total may not equal 100% due to rounding.
Domestic equities92.4%
International equities & depositary receipts6.1%
Cash and cash equivalents1.5%
Top 10 holdings as of 10/31/2015
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Celgene Corp.5.8%
Visa Inc.5.8%
Allergan plc5.0%
MasterCard Inc.4.5%
Walgreens Boots Alliance Inc.4.4%
Equinix Inc.4.3%
Crown Castle International Corp.4.3%
Liberty Interactive Corp. QVC Group4.2%
Microsoft Corp.4.1%
Total % Portfolio in Top 10 holdings48.2%
Top sectors as of 10/31/2015
List excludes cash and cash equivalents.
Sector% of portfolio
Financial services25.7%
Consumer discretionary17.8%
Consumer staples4.4%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ 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: 27

(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 September 30, 2015

Within the Fund

For the third quarter of 2015, Delaware U.S. Growth Fund (Institutional Class shares and Class A shares at net asset value) underperformed its benchmark, the Russell 1000® Growth Index. On a sector level, strong relative performance in the financial services sector was unable to overcome weak relative performance in the consumer discretionary and energy sectors. It should be noted that we exited the Fund’s positions within the energy sector during the quarter as we grew increasingly uncomfortable with cyclical headwinds and persistently low oil and natural gas prices. While we don’t typically allow top-down macro factors to drive our buy-sell decisions, we couldn’t ignore how current energy industry dynamics might affect company fundamentals in the near-to-intermediate term. We believe extreme changes in the overall energy industry have meaningfully affected the risk-reward trade-off of these particular energy companies.

Equinix contributed to the Fund’s performance during the quarter. The company reported relatively strong financial results and increased its 2015 outlook. Additionally, the company is pursuing several strategic acquisitions that should further strengthen its global presence. The company continues to benefit from significant opportunities associated with cloud computing and its disruption in the information technology (IT) 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 allow the company to be well positioned in a technology spending environment that is focused on addressing the needs of enterprises which are struggling to maintain the highest level of network performance and quality of service for global users.

NIKE was a contributor to performance during the quarter. The stock rose sharply toward the end of the quarter after the company reported better-than-expected financial results due, in part, to strong growth in revenues and margin improvements. The company continues to experience growth in its product lines, increased market share, and expansion into new geographies. The company’s product innovation and future product pipeline continue to be a key part of its competitive advantage and leadership position in the industry. We continue to hold the Fund’s position as the company’s future growth prospects — especially in emerging markets — remains attractive to us at this time.

Visa also contributed to performance during the quarter. Aside from reporting strong financial results that beat consensus estimates, the stock experienced several positive developments during the quarter. The market reacted favorably to acquisition talks that are currently underway between Visa and Visa Europe (the latter is a past subsidiary of Visa that has been an independent entity since 2007). Additionally, Visa invested in an online digital payment company, Stripe, which gives Visa immediate access to the digital payment space. While there are some concerns over disintermediating technologies, such as alternative mobile payment services, we believe Visa has attempted to take aggressive initiatives through technology upgrades and strategic partnerships. We continue to believe the company is well positioned to benefit from the secular global trend of payment transactions moving from paper-based currency to electronic transactions.

Baidu detracted from the Fund’s performance during the quarter. The company reported weaker-than-expected financial results driven, in part, by increased capital expenditure costs and disappointing guidance. In addition, concerns about China’s slowing economy, its falling stock market, and yuan devaluation efforts negatively affected the stock (note that Baidu reports financials in U.S. dollars but earns revenue primarily in yuan). While the company’s heavy capital investments into its mobile-related services is already providing growth for the company, its transition has affected near-term margins and revenue. We agree with the heavy investment spending strategy and continue to believe Baidu 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.

Valeant Pharmaceuticals International was a detractor from performance during the quarter. The stock fell sharply after the company, among others in the pharmaceutical industry, received criticism for its drug pricing policy. Certain members of Congress are pressuring the company to provide documents related to specific drug price increases. We believe the recent controversy has been exaggerated and do not believe it should have a meaningful effect on the company’s long-term ability to grow. However, we are continuing to review the effect it could have on the company’s intrinsic business value as it acquires smaller and more nimble companies that it can integrate into its platform. We have seen benefits of recent acquisitions and are supportive of the company’s acquisition strategy going forward.

TripAdvisor also detracted from performance during the quarter. The company reported financial results that fell short of consensus estimates driven, in part, by an increase in sales and marketing costs, and the negative effects of currency volatility. Additionally, the company lowered future guidance due to expected currency and global economy headwinds. We feel that currency effects are inherently temporary and therefore do not affect our overall long-term thesis of the company. Additionally, we feel the recent increase in certain costs may ultimately help increase user traffic and could help build a more valuable global platform over the long term. While the company has a significant amount of user traffic that has been historically under-monetized, TripAdvisor is making a strategic push to better monetize this business (that is, through an “instant booking” button that allows consumers to reserve directly on its site rather than losing customers to competitor sites). We feel this strategic push and its recent partnerships could create meaningful growth for the company going 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 across 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 11/30/2015)

Institutional ClassPriceNet changeYTD
Max offer price$28.46n/an/a

Total net assets (as of 10/31/2015)

$3.8 billion all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 10/31/2015)
RatingNo. of funds
3 Yrs31512
5 Yrs51331
10 Yrs3931
Morningstar categoryLarge Growth

(View Morningstar disclosure)

Lipper ranking (as of 10/31/2015)

YTD ranking472 / 673
1 year359 / 672
3 years342 / 593
5 years65 / 537
10 years152 / 384
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