Optimum Small-Mid Cap Growth Fund seeks long-term growth of capital.
Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of small- and mid-market capitalization companies (80% policy). This policy may be changed only upon 60 days' prior notice to shareholders. For purposes of this Fund, small-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell 2000® Growth Index, and mid-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell Midcap® Growth Index. As of June 30, 2015, the Russell 2000 Growth Index had a market capitalization range between $64.4 million and $4.7 billion, and the Russell Midcap Growth Index had a market capitalization range between $1.8 billion and $28.1 billion. The market capitalization range for these Indices will change on a periodic basis. A company's market capitalization is based on its current market capitalization or its market capitalization at the time of the Fund's investment. Companies whose market capitalization no longer meets the respective definition above after purchase continue to be considered either small- or mid-market-capitalization companies, as applicable, for purposes of this 80% policy.
The Fund intends to invest primarily in common stocks of U.S. companies, but it may also invest in other securities that the sub-advisor believes provide opportunities for capital growth, such as preferred stocks, warrants, and securities convertible into common stocks. In keeping with the Fund's investment objective, the Fund may also invest in foreign securities, including American Depositary Receipts (ADRs) and other depositary receipts and shares; futures, options, and other derivatives; and fixed income securities, including those rated below investment grade.
The Fund's manager, Delaware Management Company (Manager), has selected Columbia Wanger Asset Management, LLC (Columbia WAM) and Wellington Management Company LLP (Wellington Management) to serve as the Fund's sub-advisors. Each sub-advisor is responsible for the day-to-day investment management of the portion of the Fund's assets that the Manager allocates to the sub-advisor. The Manager may change the allocation at any time. The relative values of each sub-advisor's share of the Fund's assets also may change over time. Each sub-advisor selects investments for its portion of the Fund based on its own investment style and strategy.
In managing its portion of the Fund's assets, Columbia WAM typically looks for companies with a strong business franchise that offers growth potential, products and services that give the company a competitive advantage, and/or a stock price that Columbia WAM believes is reasonable relative to the assets and earnings power of the company. Columbia WAM may identify what it believes are important economic, social, or technological trends and try to identify companies it thinks will benefit from these trends. Columbia WAM relies primarily on independent, internally generated research to uncover companies that may be less well known than the more popular names. To find these companies, Columbia WAM compares growth potential, financial strength, and fundamental value among companies.
In managing its portion of the Fund's assets, Wellington Management seeks to invest in stocks of rapidly growing companies, adding value through bottom-up, fundamental security selection decisions. The investment process consists of three phases: defining a universe, selecting individual stocks, and executing a portfolio strategy. Throughout this process, Wellington Management identifies both emerging and re-emerging growth companies. They generally look for companies that exhibit some or all of the following fundamental characteristics: sustainable revenue growth, superior market position, positive financial trends, and high quality management. A stock is purchased when it is considered to be undervalued relative to their fundamental outlook for the company. This valuation methodology focuses on a number of metrics, including absolute and relative forward price-to-earnings multiples, enterprise value/earnings before interest, taxes, depreciation and amortization (EBITDA), price-to-sales ratios, and the present value of future cash flows. The most compelling purchase candidates look attractive through several of these valuation metrics.
In response to market, economic, political, or other conditions, a sub-advisor may temporarily use a different investment strategy for defensive purposes. If a sub-advisor does so, different factors could affect the Fund's performance and the Fund may not achieve its investment objective. The Fund's investment objective is nonfundamental and can be changed without shareholder approval. However, the Fund's Board of Trustees must approve any changes to nonfundamental investment objectives, and the Fund's shareholders would be given at least 60 days' notice prior to any such change.
|Dividends paid (if any)||Annually|
|Capital gains paid (if any)||November or December|
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)|
|YTD||1 year||3 year||5 year||10 year||Lifetime||Inception date|
|NAV (view definition)||-4.14%||-2.64%||12.42%||11.03%||5.10%||7.44%||08/01/2003|
|Max offer price||-9.66%||-8.22%||10.23%||9.72%||4.48%||6.92%|
|Russell 2500 Growth Index||1.18%||4.17%||16.48%||14.25%||9.29%||n/a|
|Average annual total return as of quarter-end (09/30/2015)|
|Last quarter||1 year||3 year||5 year||10 year||Lifetime||Inception date|
|NAV (view definition)||-12.65%||-1.91%||10.16%||10.93%||4.34%||7.17%||08/01/2003|
|Max offer price||-17.68%||-7.54%||8.01%||9.62%||3.72%||6.64%|
|Russell 2500 Growth Index||-11.05%||3.35%||13.79%||13.93%||8.37%||n/a|
Returns for less than one year are not annualized.
Class A shares have a maximum up-front sales charge of 5.75% and are subject to an annual distribution fee.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Net expense ratio reflects a contractual waiver from certain fees and/or expense reimbursements from July 29, 2015 to July 29, 2016. Please see the fee table in the Fund’s prospectus for more information.
|Performance characteristics - as of 10/31/2015|
|Annualized standard deviation, 3 years (view definition)||13.22|
|Quarterly total returns @ NAV|
|Year||1st quarter||2nd quarter||3rd quarter||4th quarter||Annual return|
Delaware Management Company
Columbia Wanger Asset Management, LLC (Columbia WAM)
Robert A. Chalupnik, CFA
Start date on the Fund: October 2010
Robert A. Chalupnik, CFA, shares primary responsibility for the day-to-day management of Columbia WAM’s share of the Fund’s assets. Chalupnik is a domestic analyst at Columbia WAM and joined the firm in 1998. He holds the Chartered Financial Analyst designation and has held his Fund responsibilities since October 2010.
William Doyle, CFA
Start date on the Fund: October 2015
Bill Doyle, CFA, shares primary responsibility for the day-to-day management of Columbia WAM’s share of the Fund’s assets. Doyle is the global energy analyst at Columbia WAM and joined the firm in 2006. He earned bachelors' degrees in finance and history from Illinois State University and an MBA from Loyola University of Chicago. In addition, Doyle holds the Chartered Financial Analyst designation and has held his Fund responsibilities since October 2015.
Wellington Management Company, LLP
Steven C. Angeli, CFA
Senior Managing Director and Equity Portfolio Manager
Start date on the Fund: June 2008
Steven C. Angeli, CFA, Senior Vice President and Equity Portfolio Manager of Wellington Management, is primarily responsible for the day-to-day management of Wellington Management’s share of the Fund’s assets. Angeli joined Wellington Management as an investment professional in 1994. He has held his Fund responsibilities since June 2008.
You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $75,000 in the Optimum Funds. More information about these and other discounts is available from your financial advisor, in the Fund's prospectus under the section entitled "About your account," and in the Fund's statement of additional information (SAI) under the section entitled "Purchasing shares."
The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.
|Maximum sales charge (load) imposed on purchases as a percentage of offering price||5.75%|
|Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower||none|
|Annual fund operating expenses|
|Distribution and service (12b-1) fees||0.25%|
|Total annual fund operating expenses||1.77%|
|Fee waivers and expense reimbursements||(0.18%)|
|Total annual fund operating expenses after fee waivers and expense reimbursements||1.59%|
The chart below lists the percentage of the Fund's total assets under management that each sub-advisor manages on behalf of the Fund. The percentages include securities, cash, and any other assets managed by each sub-advisor in its sleeve of the Fund. These percentage allocations should be updated some time after 30 days following a given month end.
|Date||Columbia Wanger Asset Management||Wellington Management Company||Total|
Total may not equal 100% due to rounding.
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.
Investing involves risk, including the possible loss of principal.
High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.
The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.
The Funds may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
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.
Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.