Delaware International Value Equity Fund


Delaware International Value Equity Fund seeks long-term growth without undue risk to principal.


The Fund invests primarily in equity securities that are organized, have a majority of their assets, or generate the majority of their operating income outside the United States, and that provide the potential for capital appreciation.

Fund information
Inception date10/31/1991
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)3.06%-1.31%6.15%2.90%2.79%6.03%10/31/1991
Max offer price-2.89%-7.00%4.08%1.69%2.18%5.77%
MSCI EAFE Index (Gross)2.53%0.37%8.48%5.28%4.53%n/a
MSCI EAFE Index (Net)2.13%-0.07%8.02%4.81%4.05%n/a
Average annual total return as of quarter-end (09/30/2015)
Last quarter1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-8.63%-9.41%4.54%2.42%1.90%5.79%10/31/1991
Max offer price-13.90%-14.61%2.50%1.22%1.30%5.53%
MSCI EAFE Index (Gross)-10.19%-8.27%6.08%4.45%3.44%n/a
MSCI EAFE Index (Net)n/a-8.66%5.63%3.98%2.97%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 holdings49
Market cap (median)$23.95 billion
Market cap (weighted average)$52.08 billion
Portfolio turnover (last fiscal year)26%
Beta, 3 years (relative to MSCI EAFE Index (Gross)) (view definition)0.95
Annualized standard deviation, 3 years (view definition)12.57
Portfolio composition as of 10/31/2015Total may not equal 100% due to rounding.
International equities & depositary receipts99.3%
Cash and cash equivalents0.7%
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.
Holding% of portfolio
Teva Pharmaceutical Industries Ltd.4.1%
AXA S.A.4.0%
Mitsubishi UFJ Financial Group Inc.3.9%
Nippon Telegraph & Telephone Corp.3.7%
Novartis AG3.5%
Toyota Motor Corp.3.4%
Nordea Bank AB3.1%
ITOCHU Corp.2.9%
Yue Yuen Industrial Holdings Ltd.2.9%
Total % Portfolio in Top 10 holdings35.0%

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
United Kingdom11.2%
Hong Kong4.6%
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.

Opportunity through adversity — international value investing at Delaware Investments

Buying stocks that appear risky, when in fact they are far less risky than people think is at the heart of the Global and International Value Equity team's philosophy. Watch the team elaborate on its investment process as well as the unique chemistry that helps make the team work.

Watch the video

Ned Gray

Ned A. Gray, CFA

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

Start date on the Fund: May 2006

Years of industry experience: 29

(View bio)

Todd Bassion

Todd A. Bassion, CFA

Vice President, Portfolio Manager

Start date on the Fund: May 2006

Years of industry experience: 15

(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 fees0.85%
Distribution and service (12b-1) fees0.25%
Other expenses0.32%
Total annual fund operating expenses1.42%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements1.42%

1The Fund's investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 1.21% of the Fund’s average daily net assets from March 30, 2015 through March 30, 2016. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

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Delaware International Value Equity Fund Quarterly commentary September 30, 2015

Within the Fund

For the quarter ended Sept. 30, 2015, Delaware International Value Equity Fund outperformed its benchmark, the MSCI EAFE Index.

The Fund’s outperformance was primarily due to strong stock selection. On a regional basis, strong stock selection in the euro zone and Asia Pacific, including Japan, more than offset weak stock selection in Europe ex euro zone and the United Kingdom. Overall regional allocation was slightly negative, with an adverse exposure to emerging markets and underexposure to the U.K. more than offsetting the favorable effect from an overweight exposure to Europe ex euro zone and underweight to Asia ex Japan.

On a sector basis, strong stock selection in information technology, consumer discretionary, and industrials more than offset weak stock selection in consumer staples and financials. Overall sector allocation was positive, with an underweight exposure to materials and overweight exposure to healthcare more than offsetting unfavorable underweight exposures in utilities and consumer staples. Net currency effect was positive, with underweight exposures to the Australian dollar and British pound more than offsetting unfavorable exposures to the Canadian dollar and Indonesian rupiah.

Prospective global market drivers and general outlook

Not for the first time, the tone and direction of equity market performance in developed markets outside the United States has appeared to owe more to events outside that group than within it. The sheer scale of the economies in the U.S. and China is sufficient today that speculation about the timing of a rate action by the U.S. Federal Reserve or the protracted slowing of Chinese industrial production can define outcomes for the rest of the world, at least in the very short term. We believe that prospective returns, though, have more to do with long-term developments in economic growth, profitability, and valuation than the vicissitudes of local cycles. By these measures, we see some cause for optimism.

Across much of the developed world, little has changed since the end of the June quarter except a clearer recognition that earnings from emerging markets may be less certain than previously thought, and that valuations are correspondingly more attractive. In Europe, relatively high valuations on trailing earnings continue to reflect in part the cyclical weakness that still prevails. Returns on equity remain in the lower band of the historical range, and normalization of profitability under a scenario of economic recovery could support stock prices even without further expansion of valuations. In Japan, as was the case earlier in the year, a steep valuation discount to global norms on book value suggests to us that there is room for further gains if the corresponding lag in returns on equity continues to close.

As a group, U.S. companies are both highly profitable and highly valued. The past quarter’s rotation toward defensive consumer staple and utility stocks suggests the market is concerned that there is little room for further improvement from here. It should be noted, though, that few of the indications of tightness in the economy that typically mark the top of the business cycle are in place today, and that low prevailing interest rates could justify further expansion of valuations.

Finally, emerging economies remain the most significant source of volatility in the markets. There is little indication even now that the rate of deterioration in economic growth has started to slow — a necessary precondition to the renewal of confidence in the group as an attractive place to invest. Given the scale and duration of the investment cycle of the past decade, we are wary of further downside.

As a guide to investment policy, we believe that predicting the complex interaction of economic trends is a daunting enterprise, but that strength and adaptability can be recognized at the company level, and it is these qualities, in our view, that will facilitate long-term success under a variety of economic outcomes that may be difficult to envision today.


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 11/30/2015)

Class APriceNet changeYTD
Max offer price$13.75n/an/a

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

$257.1 million all share classes

Lipper ranking (as of 10/31/2015)

YTD ranking47 / 186
1 year63 / 179
3 years78 / 144
5 years69 / 121
10 years40 / 72
Lipper classificationInternational Multi-Cap Value

(View Lipper disclosure)

Benchmark, peer group

MSCI EAFE Index (view definition)

Lipper International Multi-Cap Value Funds Average (view definition)

Additional information