Delaware VIP® International Value Equity Series

Objective

Delaware VIP International Value Equity Series seeks long-term growth without undue risk to principal.

Strategy

The Series 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.

Series information
Inception date05/01/2000
Dividends paid*Annually
Capital gains paid*Annually

*If any.

Series identifier
CUSIP246493779

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)-0.66%14.27%3.55%15.11%5.83%5.65%05/01/2000
MSCI EAFE Index (Gross)0.77%18.06%7.72%16.55%7.01%n/a
MSCI EAFE Index (Net)0.66%17.56%7.21%16.01%6.53%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.66%-0.66%14.27%3.55%15.11%5.83%5.65%05/01/2000
MSCI EAFE Index (Gross)0.77%0.77%18.06%7.72%16.55%7.01%n/a
MSCI EAFE Index (Net)0.66%0.66%17.56%7.21%16.01%6.53%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross1.37%
Net1.32%

Net expense ratio reflects a contractual distribution fee waiver from April 30, 2013 to April 30, 2014. Please see the fee table in the Series' prospectus for more information.

The performance and expense ratio information shown represent the performance and fees as they relate to actual shares of the Series. These examples do not include any fees or sales charges imposed by the variable insurance contract for which the Series is an investment option. If they were included, your costs would be higher and performance would be lower. Investors should consult the contract prospectus or disclosure documents for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2014-0.66%n/an/an/an/a
20136.45%-2.38%11.43%5.74%22.45%
201210.81%-7.62%6.57%5.22%14.79%
20117.36%2.31%-25.22%3.94%-14.62%
20102.02%-12.47%17.54%5.47%10.71%
2009-12.09%21.91%20.41%4.32%34.61%
2008-8.47%-6.58%-16.56%-19.64%-42.67%
20074.33%6.79%-2.12%-3.74%4.98%
20068.11%-1.09%5.00%9.76%23.24%
20050.97%-0.16%9.01%2.52%12.65%
20042.29%1.60%2.46%14.04%21.44%
Portfolio characteristics - as of 03/31/2014
Share assets$0.0 million
Number of holdings45
Market cap (median)$28.67 billion
Market cap (weighted average)$51.69 billion
Portfolio turnover (last fiscal year)28%
P/E ratio (weighted average trailing 12 months) (view definition)14.94x
Beta (relative to MSCI EAFE Index (Gross)) (view definition)0.96
Annualized standard deviation, 3 years (view definition)16.73
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
International equities & depository receipts95.1%
Cash and cash equivalents4.7%
Domestic equities0.2%
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
ARYZTA AG4.9%
Teva Pharmaceutical Industries Ltd.3.9%
Toyota Motor Corp.3.8%
Novartis AG3.5%
Nordea Bank AB3.5%
AXA S.A.3.4%
CGI Group Inc.3.3%
Sanofi3.3%
Vinci S.A.3.2%
Nippon Telegraph & Telephone Corp.3.1%
Total % Portfolio in Top 10 holdings35.9%
Top 10 countries as of 03/31/2014List excludes cash and cash equivalents.
Country% of portfolio
France21.4%
Japan17.0%
United Kingdom10.0%
Switzerland8.4%
Canada6.8%
Germany5.5%
Israel3.9%
Sweden3.8%
Italy3.7%
Hong Kong3.4%
Todd Bassion

Todd A. Bassion, CFA

Portfolio Manager

Start date on the Fund: May 2006

(View bio)


Ned Gray

Ned Gray, CFA

Chief Investment Officer — Global and International Value Equity

Start date on the Fund: July 2008

(View bio)


The following table describes the fees and expenses that you may pay if you buy and hold shares of the Series. The fee table does not reflect any fees or sales charges imposed by variable insurance contracts. If it did, the expenses would be higher.

Annual series operating expenses
Management fees0.85%
Distribution and service (12b-1) fees0.30%
Other expenses0.22%
Total annual series operating expenses1.37%
Fee waivers and expense reimbursements(0.05%)
Total annual series operating expenses after fee waivers and expense reimbursements1.32%

1The Series' distributor, Delaware Distributors, L.P. (Distributor), has contracted to limit the 12b-1 fees to no more than 0.25% of average daily net assets from April 30, 2013 through April 30, 2014. This waiver and/or reimbursement may be terminated only by agreement of the Distributor and the Series.

Carefully consider the Series' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Series' prospectus and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or by calling 800 523-1918. 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.

Delaware VIP Series refers to Delaware VIP Funds. Delaware VIP Funds are not available for direct investment except for issuers of variable insurance product contracts. They are only available through the purchase of certain variable insurance products.

The Series is distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Fund Finder

Daily pricing (as of 04/17/2014)

Service ClassPriceNet changeYTD
NAV$12.140.04-0.16%
Max offer price$12.14n/an/a

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

$60.1 million all share classes

Benchmark, peer group

MSCI EAFE (Europe, Australasia, Far East) Index (view)

Lipper International Core Funds Average (view)

Additional information