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 (10/31/2015)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-10.90%-20.14%-0.02%-2.05%5.61%6.86%06/10/1996
Max offer price-16.03%-24.74%-1.98%-3.21%4.99%6.54%
MSCI Emerging Markets Index (Gross)-9.17%-14.22%-2.53%-2.47%6.04%n/a
MSCI Emerging Markets Index (Net)-9.45%-14.53%-2.87%-2.80%5.70%n/a
Average annual total return as of quarter-end (09/30/2015)
Last quarter1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-21.74%-29.75%-4.09%-3.73%3.72%6.21%06/10/1996
Max offer price-26.22%-33.78%-5.97%-4.86%3.10%5.89%
MSCI Emerging Markets Index (Gross)-17.78%-18.98%-4.93%-3.25%4.60%n/a
MSCI Emerging Markets Index (Net)n/a-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 10/31/2015
Number of holdings103
Market cap (median)$3.01 billion
Market cap (weighted average)$38.42 billion
Portfolio turnover (last fiscal year)26%
Beta, 3 years (relative to MSCI Emerging Markets Index (Gross)) (view definition)1.21
Annualized standard deviation, 3 years (view definition)18.45
Portfolio composition as of 10/31/2015Total may not equal 100% due to rounding.
International equities & depositary receipts100.1%
Domestic equities1.0%
Cash and cash equivalents-1.1%
Top 10 holdings as of 10/31/2015
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 Ltd8.4%
Reliance Industries Ltd7.1%
Baidu Inc5.2% Inc4.6%
SINA Corp/China4.4%
SK Telecom Co Ltd3.2%
China Mobile Ltd3.1%
Tencent Holdings Ltd2.2%
Youku Tudou Inc2.1%
Yandex NV1.9%
Total % Portfolio in Top 10 holdings42.2%

Data sheet

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

Top 10 countries as of 10/31/2015List excludes cash and cash equivalents.
Country% of portfolio
South Korea18.3%
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: 20

(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%

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Delaware Emerging Markets Fund Quarterly commentary September 30, 2015

Within the Fund

Delaware Emerging Markets Fund (Institutional Class shares and Class A shares at net asset value) underperformed its benchmark, the MSCI Emerging Markets Index, during the third quarter.

Among countries, South Korea was the main positive contributor. The Fund’s investments in the telecom sector, including SK Telecom and LG Uplus, outperformed due to the stable nature of their businesses. In addition, intense competitive pressures have subsided in recent months. Elsewhere in South Korea, shares of Lotte Confectionery rose as the Lotte Group disclosed its intention to publicly list key subsidiaries and simplify the group’s ownership structure, thereby improving transparency.

In contrast, Brazil detracted the most from performance. The Fund’s overweight position in Brazil was unfavorable in terms of asset allocation. In addition, several of our holdings underperformed the Brazilian market. Shares of Petrobras declined in sympathy with oil prices. Shares of consumer companies Hypermarcas and B2W Companhia Digital and telecom operators Tim Participacoes and Telefonica Brasil declined as general economic weakness negatively affected consumers’ purchasing power. In addition, currency depreciation eroded revenue and profits in U.S. dollar terms. We believe that the long-term competitiveness and franchise sustainability of these companies remain intact and that they are well positioned for structural growth when the economy recovers.

In Mexico, underperformance primarily stemmed from the Fund’s investment in Grupo Televisa. Recent advertising revenue has come in weaker than expected, raising questions about whether this is a cyclical or structural downturn. In addition, the correction in U.S. media stocks has cast a cloud over Grupo Televisa’s proposed initial public offering (IPO) of Univision. We believe that Grupo Televisa’s ecosystem remains robust and that the company is well positioned to benefit from long-term growth in consumption and income.

Among sectors, financials contributed positively due to the Fund’s underweight position in Chinese financials. Shares of banks, brokerages, property developers, and insurance companies declined as concerns about the economy’s health escalated and the domestic equity market continued to sell off sharply from its June peak. Other positive contributors included Reliance Capital in India and Sberbank in Russia.

On the negative side, technology was the weakest-performing sector in the Fund. We have been significantly overweight in the Chinese technology sector, and these stocks were punished amid a wave of negative sentiment toward the Chinese economy. Baidu underperformed due to downward pressure on short-term earnings as the company invested more heavily in future growth initiatives. We believe that Baidu’s long-term earnings power remains intact, underpinned by its dominant position in online search. Shares of corrected as the suspension of IPOs in the domestic equity market reduced the likelihood of unlocking value in key subsidiaries such as search and video. Shares of Yahoo declined in sympathy with Alibaba’s stock, as Alibaba is experiencing slower-than-expected near-term growth. Elsewhere, in Taiwan, shares of MediaTek declined due to weak demand for non-Apple smartphones. In Russia, currency depreciation negatively affected Fund investments in Yandex and Qiwi. Finally, in India, the Fund’s underweight position in software stocks detracted from performance.


In our view, the Chinese economy and U.S. interest rates are likely to remain critical drivers of emerging market equities. With respect to China, we believe that the economy will muddle through, supported by structural growth in consumption, improvement in living standards, and selective policy support from the government. While the path may not be smooth, any evidence of stabilization in growth could serve as a positive catalyst. Regarding U.S. interest rates, we expect monetary policy to remain accommodative overall in light of lingering global growth concerns.

Our investment approach remains centered on identifying individual companies that we believe possess sustainable franchises and favorable long-term growth prospects and that trade at significant discounts to their intrinsic value. We are particularly focused on companies we believe may benefit from long-term changes in how people in emerging markets live and work. Sectors we currently favor include technology and telecommunications. In the short term, global growth concerns are eclipsing fundamental valuation merits. However, we remain patient with our investments and expect companies with sound fundamentals to have the potential to outperform over the long term.


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 12/01/2015)

Class APriceNet changeYTD
Max offer price$13.68n/an/a

Total net assets (as of 10/31/2015)

$1.7 billion all share classes

Overall Morningstar RatingTM

Load waived

With load

Class A shares (as of 10/31/2015)
Load waivedWith loadNo. of funds
3 Yrs33562
5 Yrs32371
10 Yrs33170
Morningstar categoryDiversified Emerging Mkts

(View Morningstar disclosure)

Lipper ranking (as of 10/31/2015)

YTD ranking533 / 812
1 year682 / 773
3 years122 / 548
5 years125 / 363
10 years60 / 159
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