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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 (11/30/2016)

as of quarter-end (09/30/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.46%1.15%-1.76%5.43%0.48%5.76%10/31/1991
Max offer price-3.43%-4.66%-3.68%4.20%-0.12%5.51%
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)6.98%9.07%0.77%7.24%1.40%5.92%10/31/1991
Max offer price0.83%2.77%-1.20%5.98%0.80%5.67%
MSCI EAFE Index (Gross)6.50%7.06%0.93%7.88%2.30%n/a
MSCI EAFE Index (Net)6.43%6.52%0.48%7.39%1.82%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 10/31/2016MSCI EAFE Index (Net)
Number of holdings49924
Market cap (median)$25.48 billion$8.80 billion
Market cap (weighted average)$49.52 billion$51.68 billion
Portfolio turnover (last fiscal year)13%n/a
Beta (relative to MSCI EAFE Index (Net)) (view definition)0.95n/a
SEC 30-day yield with waiver (view definition)1.37%
SEC 30-day yield without waiver (view definition)1.37%
Annualized standard deviation, 3 years (view definition)12.26n/a
Portfolio composition as of 11/30/2016Total may not equal 100% due to rounding.
International equities & depositary receipts96.4%
Cash and cash equivalents3.6%
Top 10 equity holdings as of 11/30/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Mitsubishi UFJ Financial Group Inc.3.7%
Toyota Motor Corp.3.4%
ITOCHU Corp.3.3%
Nippon Telegraph & Telephone Corp.3.1%
Samsung Electronics Co. Ltd.3.1%
Nordea Bank AB3.1%
Vinci S.A.2.8%
Novartis AG2.8%
Yue Yuen Industrial Holdings Ltd.2.7%
Total % Portfolio in Top 10 holdings31.4%

Top 10 countries as of 11/30/2016

List excludes cash and cash equivalents.

Country% of portfolio
United Kingdom11.8%
Hong Kong4.6%
South Korea3.1%
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: 30

(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 intermediary, 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 expenses0.26%
Total annual fund operating expenses1.36%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements1.36%

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 May 2, 2016 through May 2, 2017. 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, 2016

Within the Fund

Delaware International Value Equity Fund (Institutional Class shares and Class A shares at net asset value) outperformed its benchmark, the MSCI EAFE Index, for the third quarter of 2016, primarily due to strong stock selection.

On a sector basis, strong stock selection in industrials, consumer staples, and financials more than offset weak stock selection in materials and healthcare. Overall sector allocation was neutral, with a favorable effect from an overweight exposure in consumer discretionary and underweight exposures to consumer staples and utilities more than offsetting the adverse effect of underweights in materials and financials and an overweight in telecommunications.

On a regional basis, strong stock selection in the euro zone and the United Kingdom more than offset weak stock selection in Japan. Overall regional allocation was slightly negative, with adverse exposure to Canada more than offsetting the favorable effect of exposure to emerging markets.

Net currency effect was positive, with underexposure to the British pound more than offsetting the negative effect of underexposure to the Australian dollar.

Prospective global market drivers and general outlook

The Fund’s trading activity during the quarter continued moves that were initiated near the end of June. These included paring back some of our successful investments that were approaching their targets and redeploying the proceeds at attractive valuations. This activity has included reduced positions in Japan and Europe and corresponding additions to new and existing positions in Japan and the U.K.

While the market’s strong performance during the quarter is encouraging, despite a highly stressed starting point, one critical element of the global financial picture remains largely unchanged. Bond yields have recovered only modestly from the extreme low reached during the quarter, and negative yields persist in several major developed markets. These conditions suggest to us that the market is concerned with deflation rather than inflation for the foreseeable future. Lack of inflation also implies lack of growth, and the two together suggest an environment in which investment returns may be modest at best. The market faces a conundrum as it considers both a scarcity of conviction that economies will reaccelerate along the lines of past cycles, and clear demonstrations by monetary authorities that they will stand in the way of any accelerating weakness.

The U.S. Federal Reserve stands apart in articulating its path toward gradual tightening, but even here, the pace and uncertainty of progress in that direction has invited skepticism. At the level of equity valuations, the current landscape reveals a U.S. market selling at a premium to the rest of the world, while Japan and Europe sell at substantial discounts. These gaps presumably reflect diverging expectations of growth potential and risk, and have changed little since June. What also remains intact, though, is that for active managers, stocks reflect stakes in dynamic enterprises that can change and adapt to shifting circumstances. While the market presents us with uncertainty, we find confidence in the fact that success in equity investing reflects the varying manners in which company managements navigate these changes as well as the efficiency and focus with which they do so. We believe that the qualities that drive this success can be recognized and, when accompanied by attractive valuation, can lead to strong and sustained outperformance.


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 12/02/2016)

Class APriceNet change
Max offer price$13.79n/a

Total net assets (as of 11/30/2016)

$243.6 million all share classes

Overall Morningstar RatingTM

Load waived

With load

Class A shares (as of 10/31/2016)
Load waivedWith loadNo. of funds
3 Yrs43282
5 Yrs43233
10 Yrs33142
Morningstar categoryForeign Large Value

(View Morningstar disclosure)

Morningstar ranking (as of 10/31/2016)

YTD ranking74 / 359
1 year50 / 356
3 years64 / 282
5 years52 / 233
10 years48 / 142
Morningstar categoryForeign Large Value

(View Morningstar disclosure)

Lipper ranking (as of 10/31/2016)

YTD ranking33 / 159
1 year23 / 159
3 years30 / 134
5 years28 / 111
10 years24 / 71
Lipper classificationInternational Multi-Cap Value

(View Lipper disclosure)

Benchmark, peer group

MSCI EAFE Index (view definition)

Morningstar Foreign Large Value Category (view definition)

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

Additional information