Delaware VIP® Small Cap Value Series

Objective

Delaware VIP Small Cap Value Series seeks capital appreciation.

Strategy

We invest primarily in stocks of small companies whose stock prices appear low relative to their underlying value or future potential.

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

*If any.

Series identifier
CUSIP246493688

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)3.03%22.29%12.64%25.25%9.68%11.78%05/01/2000
Russell 2000 Value Index1.78%22.65%12.74%23.33%8.07%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.03%3.03%22.29%12.64%25.25%9.68%11.78%05/01/2000
Russell 2000 Value Index1.78%1.78%22.65%12.74%23.33%8.07%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross1.11%
Net1.06%

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
20143.03%n/an/an/an/a
201312.20%1.02%7.52%9.28%33.17%
201211.25%-4.31%3.97%2.67%13.63%
20117.37%-2.02%-19.55%16.27%-1.59%
20109.51%-7.27%13.03%14.92%31.92%
2009-13.61%16.29%22.71%6.73%31.56%
2008-4.38%1.10%-4.36%-24.37%-30.07%
20072.65%4.73%-6.79%-7.03%-6.84%
200611.54%-2.87%1.25%5.64%15.89%
2005-0.64%3.53%4.31%1.72%9.15%
20045.53%-0.11%0.79%14.03%21.16%
Portfolio characteristics - as of 03/31/2014
Share assets$727.3 million
Number of holdings104
Market cap (median)$2.11 billion
Market cap (weighted average)$2.91 billion
Portfolio turnover (last fiscal year)23%
P/E ratio (weighted average FY1) (view definition)16.38x
Beta (relative to Russell 2000 Value Index) (view definition)0.92
Annualized standard deviation, 3 years (view definition)15.36
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
Domestic equities98.7%
Cash and cash equivalents1.3%
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
United Rentals Inc.2.7%
Whiting Petroleum Corp.2.6%
East West Bancorp Inc.2.5%
ITT Corp.2.0%
Chemtura Corp.1.8%
HB Fuller Co.1.7%
Hancock Holding Co.1.6%
Patterson-UTI Energy Inc.1.6%
Synopsys Inc.1.6%
Helix Energy Solutions Group Inc.1.6%
Total % Portfolio in Top 10 holdings19.7%
Top sectors as of 03/31/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Financial Services21.7%
Technology14.7%
Capital Spending10.9%
Basic Industry9.9%
Consumer Services9.2%
Energy8.7%
Reits6.5%
Health Care6.1%
Consumer Cyclical4.0%
Transportation2.9%
Chris Beck

Chris Beck, CFA

Chief Investment Officer — Small-Cap Value / Mid-Cap Value Equity

Start date on the Fund: May 1997

(View bio)


Steve Catricks

Steven G. Catricks, CFA

Portfolio Manager, Equity Analyst

Start date on the Fund: July 2012

(View bio)


Kent Madden

Kent P. Madden, CFA

Portfolio Manager, Equity Analyst

Start date on the Fund: July 2012

(View bio)


Kelly McKee

Kelley A. McKee, CFA

Portfolio Manager, Equity Analyst

Start date on the Fund: July 2012

(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 fees0.73%
Distribution and service (12b-1) fees0.30%
Other expenses0.08%
Total annual series operating expenses1.11%
Fee waivers and expense reimbursements(0.05%)
Total annual series operating expenses after fee waivers and expense reimbursements1.06%

1The Series' distributor, Delaware Distributors, L.P. (Distributor), has contracted to limit the 12b-1 fees to no more than 0.25% of the Series' 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.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

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.

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 04/23/2014)

Service ClassPriceNet changeYTD
NAV$38.78-0.192.19%
Max offer price$38.78n/an/a

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

$1.1 billion all share classes

Benchmark, peer group

Russell 2000® Value Index (view)

Additional information