Delaware Investments Global Value Fund

Investment objective

The investment objective of Delaware Investments Global Value Fund (Fund) is to aim to achieve long-term capital appreciation. The Fund primarily invests in U.S. and non-U.S. companies, which may include companies located or operating in established or emerging countries. While the Fund may purchase securities in any country, it will primarily invest in countries in developed markets. The Fund may invest in companies of any size, but will generally invest in mid- and large-sized companies.

Philosophy

The Delaware Investments Global and International Value Equity investment team, based in Boston, Massachusetts, U.S.A., has an investment approach that is based on the concept that adversity creates opportunity and that transitory problems can be overcome by well managed companies.

Investment process

The Delaware Investments Global and International Value Equity investment team employs a six-step investment process that combines quantitative, valuation-based screening followed by comprehensive and rigorous company and industry specific research to arrive at a carefully constructed portfolio of stocks that we believe offers the most attractive investment opportunities within a three-to-five year time horizon.

Step 1. Initial market capitalization and liquidity screens

We screen the broad investment universe for market capitalization and the appropriate measure of liquidity.

Step 2. Quantitative valuation screen

Our valuation and ranking of stocks based on earnings, book value, cash flow, and profitability further narrows the universe.

Step 3. Universe segmentation and secondary analytics

This step helps us quickly and efficiently frame, categorize, and understand the nature of potential investment opportunities. Through secondary analytics, we examine the information behind the valuation metrics on which we’ve screened.

Step 4. In-depth fundamental analysis

In-depth analysis is performed to determine a company's underlying value and potential for future growth. Team members examine a company's earnings power, financial position, capital efficiency, overall management effectiveness, and competitive dynamics to assess its value and potential upside.

Step 5. Portfolio construction

The Fund is fully invested, equally weighted, concentrated in value, and broadly diversified by type of value, economic sector, industry, and market capitalization. Stocks are added to the portfolio holdings based on their individual merit. The investment strategy is benchmark-aware but not benchmark-driven.

Step 6. Sell discipline

We will typically sell a holding when it reaches its target price, the investment thesis has changed or fundamentals have deteriorated. We will also trim or eliminate a position when we believe better relative value opportunities become available.

Performance as of 30 June 2014

  June 2Q14 1 year 3 year 5 year Since inception(24/12/2007)
Delaware Investments Global Value Fund
(Class F $ (accumulating) shares, net of fees)
2.53% 5.90% 22.35% 7.31% 13.13% 1.40%
MSCI World Index
(net)
1.79% 4.86% 24.05% 11.81% 14.99% 3.70%

The performance data quoted represent past performance; past performance may not be a reliable guide to future performance and does not guarantee future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

The MSCI World Index (net) is a free float-adjusted market capitalization weighted index designed to measure equity market performance across developed markets world-wide. It is an unmanaged index and a theoretical measure of stock-market performance rather than an actual available investment. You cannot invest directly in an index. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.

Portfolio characteristics as of 30 June 2014

Benchmark Index: MSCI World Index (net)

  Fund Index
Weighted average P/E ratio 14.9x 16.7x
Weighted average price/book ratio 1.8x 1.7x
Number of holdings 56 1,611
Weighted average market capitalization (millions) $71,304 $92,338
Median market capitalization (millions) $32,076 $9,482

Top 10 country weightings as of 30 June 2014

  Fund Index
United States 46.9% 54.8%
Japan 10.9% 8.3%
France 10.6% 4.1%
Canada 5.9% 4.3%
United Kingdom 4.2% 8.8%
Italy 3.8% 1.1%
Switzerland 3.1% 3.7%
Israel 2.7% 0.2%
Russia 1.9% 0.0%
Norway 1.7% 0.4%

The MSCI World Index (net) is a free float-adjusted market capitalization weighted index designed to measure equity market performance across developed markets world-wide. It is an unmanaged index and a theoretical measure of stock-market performance rather than an actual available investment. You cannot invest directly in an index. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.

Ned Gray

Ned Gray, CFA

Senior Vice President, Chief Investment Officer — Global and International Value Equity

Start date on the Fund: July 2008

(View bio)


Todd Bassion

Todd A. Bassion, CFA

Vice President, Portfolio Manager

Start date on the Fund: June 2011

(View bio)


Portfolio holdings are as of the date noted above and are subject to change at any time. Holdings may not be representative of current or future investments and may not include the entire investment portfolio. Holdings information is made available to the public 30 calendar days after the most recent month-end for monthly holdings and 30 calendar days after the most recent quarter-end for quarterly holdings.

Holdings data is for informational purposes only, and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any specific security. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or part. In no event shall the Macquarie Collective Funds plc or its affiliates have any liability relating to the use of the portfolio holdings.

Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and Key Investor Information Documents (KIIDs) contain this and other important information about the Fund and can be obtained by clicking the prospectus link located in the right-hand sidebar or calling +353-1-483-2429. Investors should read the prospectus carefully before investing or sending money.

There are risks involved with investing in the Fund, including loss of principal.

Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

Diversification may not protect against market risk.

Non-U.S. investments are subject to risks not ordinarily associated with U.S. investments, such as currency, economic and political risks, and different accounting standards.

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Current tax levels and relief may change. Depending on individual circumstances, this may affect investment returns.

Fund Finder

Daily pricing (as of 31/07/2014)

ClassPriceNet changeYTD
F USD Acc.$10.83-0.154.64%

Class F $ Accumulating*

Currency USD
ISIN IE00B29Q9B69
Sedol B29Q9B6
CUSIP G2774C122
Bloomberg ID DLGLVFA

Fees and expenses

Management fee 1.45%
Expense ratio 1.90%

Literature

Prospectuses and reports

Visit our Literature page for Key Investor Information Documents (KIIDs).

* For information on other share classes, please contact Delaware Investments at +1 215 255 1505 or at delawareoffshore@delinvest.com