Delaware VIP® Smid Cap Growth Series (closed to new investors)

Objective

Delaware VIP Smid Cap Growth Series seeks long-term capital appreciation.

Strategy

The Series invests primarily in common stocks of growth-oriented companies that the portfolio management team believes have long-term capital appreciation potential and expect to grow faster than the U.S. economy. The team particularly seeks small to mid-sized companies.

Series information
Inception date05/01/2000
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifier
CUSIP246493845

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 (11/30/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.92%5.42%15.52%19.65%10.98%5.79%05/01/2000
Russell 2500 Growth Index5.71%8.54%19.48%18.72%9.74%n/a
Average annual total return as of quarter-end (09/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-1.96%-6.05%4.30%16.89%18.16%11.05%5.26%05/01/2000
Russell 2500 Growth Index-4.21%-0.41%8.05%22.68%16.85%10.10%n/a

Returns for less than one year are not annualized.

Expense ratio
Gross1.13%
Net1.08%

Net expense ratio reflects a contractual distribution fee waiver from April 30, 2013 to April 30, 2014 or, if longer, until the Series is offered under new participation agreements or under new contracts with existing insurance companies (other than the update and modification of existing contracts in the normal course of business that may require registration or re-registration under state insurance laws as a new insurance contract, provided the new insurance contract effectively replaces the current insurance contract). This waiver and/or reimbursement may be terminated only by agreement of the Distributor and the Series.

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
2014-4.31%0.14%-1.96%n/an/a
201310.39%4.02%10.58%11.02%40.98%
201217.37%-6.27%2.55%-1.87%10.71%
201114.27%3.33%-16.11%8.93%7.90%
20104.96%-1.50%14.76%14.61%35.99%
20090.82%14.74%17.18%7.06%45.12%
2008-14.29%7.06%-12.66%-26.03%-40.71%
20075.36%8.04%3.06%-3.93%12.71%
20069.44%-5.98%-2.65%5.85%6.03%
2005-3.23%3.53%5.49%5.21%11.20%
20042.84%-0.14%-5.87%15.99%12.13%
Portfolio characteristics - as of 11/30/2014
Share assets$205.5 million
Number of holdings26
Market cap (median)$3.26 billion
Market cap (weighted average)$4.17 billion
Portfolio turnover (last fiscal year)19%
Beta - (relative to Russell 2500 Growth Index) (view definition)0.87
Annualized standard deviation, 3 years (view definition)12.58
Portfolio composition as of 11/30/2014Total may not equal 100% due to rounding.
Domestic equities91.0%
International equities & depository receipts6.9%
Cash and cash equivalents2.1%
Top 10 holdings as of 11/30/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
DineEquity Inc.6.2%
Heartland Payment Systems Inc.6.1%
MSCI Inc.5.7%
Sally Beauty Holdings Inc.5.5%
j2 Global Inc.5.4%
Ulta Salon Cosmetics & Fragrance Inc.5.3%
Graco Inc.5.2%
Bio-Techne Corp.5.0%
Affiliated Managers Group Inc.4.5%
Zebra Technologies Corp.4.4%
Total % Portfolio in Top 10 holdings53.3%
Top sectors as of 11/30/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Consumer Discretionary25.2%
Financial Services20.6%
Producer Durables17.0%
Technology15.9%
Health Care10.0%
Utilities5.4%
Energy3.9%

Investment manager

Delaware Management Company, a series of Delaware Management Business Trust

Sub-advisors

Jackson Square Partners, LLC


Chris Bonavico

Christopher J. Bonavico, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: January 2010

Years of industry experience: 26

(View bio)


Ken Broad

Kenneth F. Broad, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: January 2010

Years of industry experience: 20

(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 fees0.74%
Distribution and service (12b-1) fees0.30%
Other expenses0.09%
Total annual series operating expenses1.13%
Fee waivers and expense reimbursements(0.05%)
Total annual series operating expenses after fee waivers and expense reimbursements1.08%

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, 2014 through April 30, 2015 or, if longer, until the Series is offered under new participation agreements or under new contracts with existing insurance companies (other than the update and modification of existing contracts in the normal course of business that may require registration or re-registration under state insurance laws as a new insurance contract, provided the new insurance contract effectively replaces the current insurance contract). This waiver may be terminated only by agreement of the Distributor and the Series.

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

As of Feb. 24, 2012, Delaware VIP Smid Cap Growth Series is closed to new investors. The Series will continue to be available in the products in which it is currently utilized, and the Series will remain open to new and existing contract holders of current insurance company products that include the Series. Contract holders of existing insurance companies that offer the Series will be able to continue to make purchases of shares, including purchases through reinvestment of dividends or capital gains distributions, and exchanges, regardless of whether they own, or have owned in the past, shares of the Series. The Series reserves the right to modify this policy at any time. Please read the latest prospectus and summary prospectus for more information concerning this event. Please request a prospectus.

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.

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 12/26/2014)

Service ClassPriceNet changeYTD
NAV$29.480.134.40%
Max offer price$29.48n/an/a

Total net assets (as of 11/30/2014)

$593.7 million all share classes

Benchmark, peer group

Russell 2500 Growth Index (view)

Lipper Mid-Cap Growth Funds Average (view)

Additional information