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2014 Investment Outlooks

2014 Investment Outlooks

2014 Investment Themes

Read All Themes

Read below for edited compilations of our investment teams’ perspectives on some of the major investment themes that could impact the markets in 2014.

Insights on the prospects for economic growth, corporate performance, and broad market trends.

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After a year in which income-oriented investments were in demand, where might yield-oriented investors turn next?

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Developed world stocks far outpaced emerging market equities in 2013. Where might growth come from in 2014?

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Core

Portfolio managers

  • Frank Morris
  • Christopher Adams
  • Michael Morris
  • Donald Padilla
We see a landscape in which corporate balance sheets appear to us to be in good shape. Read the outlook

The views expressed represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

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

Emerging Markets

Portfolio manager

  • Liu-Er Chen
We believe emerging market stocks in 2014 will be driven by three main factors: the Chinese economy, global monetary policy, and politics. Read The Outlook
Economic growth within emerging markets is often linked to growth within developed economies — a trend that softened in 2013, but which we expect will regain momentum in the years ahead.

Caption

Source: International Monetary Fund, World Economic Outlook Database, October 2013. Most recent data available.

Gross domestic product (GDP) measures the amount of goods and services produced within a country in a given period.

The views expressed represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

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.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

Focus Growth

Portfolio managers

  • Jeffrey Van Harte
  • Christopher Bonavico
  • Kenneth Broad
  • Christopher Ericksen
  • Ian Ferry
  • Patrick Fortier
  • Gregory Heywood
  • Daniel Prislin
  • Van Tran
Macroeconomic data points generally do not drive our investment process. Rather, we focus on a company’s fundamentals as the largest driver of long-term value and won’t be deterred by short-term shifts in macroeconomic data points or market sentiment. Read The Outlook

Focusing on intrinsic business value [Runtime: 0:40]

The views expressed represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

Intrinsic value, which may or may not be the same as the current market value, is the actual value of a company based on an underlying perception of its true value that includes all aspects of the business.

IMPORTANT RISK CONSIDERATIONS

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.

Because the Fund expects to hold a concentrated portfolio of a limited number of securities, the Fund's risk is increased because each investment has a greater effect on the Fund's overall performance.

Global and International Value

Portfolio managers

  • Ned Gray
  • Todd Bassion
We believe cyclical volatility will always create opportunities for those who understand and are prepared for it. Read The Outlook

Segmenting value stocks [Runtime: 1:16]

Investment opportunities [Runtime: 1:04]

The views expressed in the video represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

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.

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

Global Infrastructure

Portfolio managers

  • Brad Frishberg
  • Jonathon Ong
We continue to see a number of attractive opportunities in listed infrastructure companies globally, offering a combination of generally lower economic cyclicality, inflation protection, and stable cash flows. Read The Outlook
Demand for infrastructure
Demand for infrastructure

The views expressed represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

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.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors. Because the Fund concentrates its investments in securities issued by companies principally engaged in the infrastructure industry, the Fund has greater exposure to the potential adverse economic, regulatory, political, and other changes affecting such entities.

"Nondiversified" Funds may allocate more of their net assets to investments in single securities than "diversified" Funds. Resulting adverse effects may subject these Funds to greater risks and volatility. Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

Macquarie Capital Investment Management LLC, an affiliate of Delaware Distributors, L.P., is the Fund's sub-adviser. The sub-adviser is responsible for the investment management of the Fund's assets.

Large-Cap Value

Portfolio managers

  • Ty Nutt
  • Kristen Bartholdson
  • Nikhil Lalvani
  • Anthony Lombardi
  • Robert Vogel Jr.
We are cautiously optimistic about the prospects for equities, especially those of higher-quality companies that are trading well below their long-term average valuation multiples. Read The Outlook

The views expressed represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.

Because the Fund expects to hold a concentrated portfolio of a limited number of securities, the Fund's risk is increased because each investment has a greater effect on the Fund's overall performance.

Portfolio turnover is a measure of how frequently the managers buy and sell assets within a fund over a particular period.

Diversification may not protect against market risk.

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.

Small-Cap Value / Mid-Cap Value

Portfolio managers

  • Chris Beck
  • Steven Catricks
  • Kent Madden
  • Kelley McKee
In our view, we are still in the middle of an economic recovery and a number of catalysts remain that could help propel the market higher in 2014. Read The Outlook

Small-cap companies returning cash to shareholders [Runtime: 1:38]

The views expressed in the video represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds' prospectuses and their summary prospectuses, which may be obtained by visiting our fund literature page or calling 877 693-3546. Investors should read the prospectus and the summary prospectus carefully before investing.

Past performance does not guarantee future results.

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.

There is no guarantee that dividend-paying stocks will continue to pay dividends.

Free cash flow is the concrete cash that a company generates in a given period.

Real Estate Securities and Income Solutions (RESIS)

Portfolio managers

  • Bob Zenouzi
  • Damon Andres
We believe income-seeking investors should place less emphasis on the highest current yield and more emphasis on the potential for growth in yield.

Global central bank policies and income securities [Runtime: 1:21]

The views expressed in the video represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.

Fixed income securities can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

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. A REIT fund’s tax status as a regulated investment company could be jeopardized if it holds real estate directly, as a result of defaults, or receives rental income from real estate holdings.

“Nondiversified” funds may allocate more of their net assets to investments in single securities than “diversified” Funds. Resulting adverse effects may subject these Funds to greater risks and volatility.

Fixed Income

Team leaders

  • See Yeng Quek
  • Joe Baxter
  • Tom Chow
  • Roger Early
  • Paul Grillo

Municipal

We intend to maintain our emphasis on bonds within the lower tier of the investment grade bond universe. We believe this segment of the marketplace provides better long-term value potential for diligent investors like us. Read The Outlook

Liquidity concerns [Runtime: 1:21]

Taxable

Our research-driven approach means that we will focus on protecting our portfolios, resisting the urge to overreach for yield or otherwise put our portfolios in jeopardy. Read The Outlook

The views expressed in the videos represent the Manager’s assessment of the Fund and market environment as of December 2013, 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.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.

Fixed income securities can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer's ability to make interest and principal payments on its debt.

Fixed income securities may also be subject to prepayment risk, the risk that the principal of a fixed income security may be prepaid prior to maturity, potentially forcing the investor to reinvest that money at a lower interest rate.

A bottom-up approach to investing primarily considers factors affecting individual companies and secondarily focuses on industries and economic trends.

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds' prospectuses and their summary prospectuses, which may be obtained by visiting the fund literature page or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.

Certain statements made here are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," "project," "will," "shall" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. The protection afforded by the safe harbor for forward-looking statements provided by the PSLRA are claimed hereunder.

Due to the uncertainty inherent in forward-looking statements, actual results or economic conditions may differ materially from those anticipated in the forward-looking statements.

Investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligations to update any forward-looking statements to reflect events or circumstances that occur after the date of this document.