Delaware Emerging Markets Fund


Delaware Emerging Markets Fund seeks long-term capital appreciation.


The Fund invests primarily in a broad range of equity securities of companies located in emerging market countries.

Fund information
Inception date06/10/1996
Dividends paid (if any)Annually
Capital gains paid (if any)November or December
Fund identifiers
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
Payroll DeductionYes

On Sept. 25, 2014, Class B shares of the Fund converted to Class A shares.

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 (09/30/2015)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-21.25%-29.75%-4.09%-3.73%3.72%6.21%06/10/1996
Max offer price-25.79%-33.78%-5.97%-4.86%3.10%5.89%
MSCI Emerging Markets Index (Gross)-15.22%-18.98%-4.93%-3.25%4.60%n/a
MSCI Emerging Markets Index (Net)-15.48%-19.28%-5.27%-3.58%4.27%n/a
Average annual total return as of quarter-end (09/30/2015)
Current quarterYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-21.74%-21.25%-29.75%-4.09%-3.73%3.72%6.21%06/10/1996
Max offer price-26.22%n/a-33.78%-5.97%-4.86%3.10%5.89%
MSCI Emerging Markets Index (Gross)n/a-15.22%-18.98%-4.93%-3.25%4.60%n/a
MSCI Emerging Markets Index (Net)n/a-15.48%-19.28%-5.27%-3.58%4.27%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.

Expense ratio
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 09/30/2015
Number of holdings104
Market cap (median)$2.63 billion
Market cap (weighted average)$33.86 billion
Portfolio turnover (last fiscal year)26%
Beta, 3 years (relative to MSCI Emerging Markets Index (Gross)) (view definition)1.15
Annualized standard deviation, 3 years (view definition)16.75
Portfolio composition as of 09/30/2015Total may not equal 100% due to rounding.
International equities & depositary receipts97.5%
Cash and cash equivalents1.5%
Domestic equities0.9%
Top 10 holdings as of 09/30/2015
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holdings based by issuer.
Holding% of portfolio
Samsung Electronics Co Ltd7.3%
Reliance Industries Ltd7.0%
Baidu Inc4.2%
SINA Corp/China4.1% Inc4.1%
SK Telecom Co Ltd3.6%
China Mobile Ltd3.3%
Tencent Holdings Ltd2.1%
Uni-President China Holdings L1.9%
Itau Unibanco Holding SA1.9%
Total % Portfolio in Top 10 holdings39.5%

Fund commentary summary

Data sheet

Holdings are as of the date indicated and subject to change.

Top 10 countries as of 09/30/2015List excludes cash and cash equivalents.
Country% of portfolio
South Korea19.0%
United States0.9%
Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions (if any) is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Liu-Er Chen

Liu-Er Chen, CFA

Senior Vice President, Chief Investment Officer — Emerging Markets and Healthcare

Start date on the Fund: September 2006

Years of industry experience: 19

(View bio)

You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Delaware Investments® 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.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price5.75%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees1.17%
Distribution and service (12b-1) fees0.25%
Other expenses0.27%
Total annual fund operating expenses1.69%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements1.69%

View printable commentary E-mail this page

This commentary is currently not available. Please check back later.

Delaware Emerging Markets Fund Quarterly commentary June 30, 2015

Within the Fund

For the second quarter of 2015, Delaware Emerging Markets Fund (Institutional Class shares and Class A shares at net asset value) outperformed its benchmark, the MSCI Emerging Markets Index.

Among countries, China contributed the most to performance. In the Internet sector, positions in SINA, Youku Tudou, and were favorable. Shares of SINA rose after the company’s chairman invested in additional shares. Shares of Youku Tudou rallied in sympathy with its peers listed domestically in China. rose due to its inexpensive valuations in the Internet sector, highlighted by a wave of privatization offers. However, these gains were somewhat mitigated by the Fund’s position in Baidu, whose shares have declined recently as the company’s continued investment in growth initiatives have affected short-term margins. In the consumer staples sector, performance was boosted by the Fund’s holdings in Uni-President China as pricing competition in the noodle and beverage industries is showing signs of rationalizing, and the company’s profitability outlook is improving.

India contributed positively to performance mainly due to the Fund’s large overweight position in Reliance Industries. Shares rose due to optimism about profitability in the company’s petrochemicals business. The Fund’s underweight stance in the technology and financials sectors also contributed positively to relative performance. In Brazil, the Fund’s holdings in Petrobras contributed positively to performance. Shares of the state-owned company rallied more than 40% after the company released its audited financial results. Shares of Hypermarcas also rose following the company’s decision to divest its diaper business.

Elsewhere, in Mexico the Fund’s overweight position in Grupo Televisa was favorable. The company has shown strong growth in the broadband market, and the value of its stake in Univision may become more transparent through an initial public offering. Finally, the Fund’s underweight in Indonesia was favorable in terms of asset allocation.

On the negative side, Fund positioning in Korea detracted the most from performance. Shares of SK Telecom declined due to lower-than-expected first-quarter earnings and concerns about a potential new entrant to the market. Our overweight in Samsung Electronics also detracted from Fund performance as concerns about smartphone sales and corporate governance weighed on the stock. Corporate governance concerns also affected KCC, which acquired shares of Samsung C&T to support its merger with Cheil Industries. Lotte Chilsung Beverage was a bright spot, however, as the stock benefited from the company’s market-share gains in beer.

Among sectors, technology contributed positively to performance due to Chinese Internet stocks. The energy sector contributed positively due to the Fund’s holdings in Petrobras and Reliance Industries. In the consumer sector, positions in Lotte Chilsung, Uni-President China, Hypermarcas, and Grupo Televisa boosted Fund performance. Financials detracted from performance due to the Fund’s underweight position in Chinese financials. Telecommunications also underperformed due to SK Telecom and Telefonica Brasil.


We believe that the outlook for emerging markets appears mixed and volatile, yet we remain optimistic about the stocks in our portfolio. While uncertainty pertaining to Greece may heighten general short-term risk aversion, we do not expect a significant long-term impact to emerging markets. The correction in Chinese domestic equities represents another source of potential volatility, and we remain vigilant about the Chinese economy. For many individual stocks in emerging markets, we find valuations attractive and long-term growth prospects intact. Our investment approach continues to be driven by bottom-up, stock-by-stock security selection with an emphasis on each company’s long-term franchise sustainability and discount to intrinsic value.


The views expressed represent the Manager’s assessment of the Fund and market environment as of the date indicated, 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. Information is as of the date indicated and subject to change.

Document must be used in its entirety.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 877 693-3546. Investors should read the prospectus and the summary prospectus carefully before investing.

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.

All third-party marks cited are the property of their respective owners.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 10/07/2015)

Class APriceNet changeYTD
Max offer price$13.01n/an/a

Total net assets (as of 09/30/2015)

$1.6 billion all share classes

Overall Morningstar RatingTM

Load waived

With load

Class A shares (as of 09/30/2015)
Load waivedWith loadNo. of funds
3 Yrs32561
5 Yrs22376
10 Yrs33168
Morningstar categoryDiversified Emerging Mkts

(View Morningstar disclosure)

Lipper ranking (as of 09/30/2015)

YTD ranking765 / 819
1 year752 / 778
3 years233 / 545
5 years190 / 367
10 years86 / 157
Lipper classificationEmerging Markets Funds

(View Lipper disclosure)

Benchmark, peer group

MSCI Emerging Markets Index (view definition)

Lipper Emerging Markets Funds Average (view definition)

Additional information