Delaware Investments Delaware Investments Delaware Investments

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 (11/30/2016)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)17.59%13.87%-2.38%3.56%4.07%7.15%06/10/1996
Max offer price10.80%7.32%-4.29%2.33%3.45%6.84%
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)14.24%35.14%0.28%6.64%5.85%7.48%06/10/1996
Max offer price7.66%27.39%-1.67%5.39%5.23%7.17%
MSCI Emerging Markets Index (Gross)9.15%17.21%-0.21%3.39%4.28%n/a
MSCI Emerging Markets Index (Net)9.03%16.78%-0.56%3.03%3.94%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

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from May 2, 2016 through May 2, 2017. Please see the fee table in the Fund’s prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 10/31/2016MSCI Emerging Markets Index (Net)
Number of holdings102647
Market cap (median)$5.93 billion$5.65 billion
Market cap (weighted average)$47.44 billion$59.61 billion
Portfolio turnover (last fiscal year)12%n/a
Beta (relative to MSCI Emerging Markets Index (Net)) (view definition)1.19n/a
Annualized standard deviation, 3 years (view definition)20.25n/a
Portfolio composition as of 11/30/2016Total may not equal 100% due to rounding.Values in excess of 100% and negative values may appear as the result of certain assets and liabilities.
International equities & depositary receipts102.3%
Domestic equities1.1%
Cash and cash equivalents-3.3%
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.
Holdings based by issuer.
Holding% of portfolio
SINA Corp/China6.3%
Reliance Industries Ltd5.8%
Samsung Electronics Co Ltd5.0%
Alibaba Group Holding Ltd3.8%
SK Telecom Co Ltd3.2%
Baidu Inc3.2% Inc3.1%
Itau Unibanco Holding SA2.6%
Tencent Holdings Ltd2.5%
MediaTek Inc2.3%
Total % Portfolio in Top 10 holdings37.8%

Data sheet

Top 10 countries as of 11/30/2016

List excludes cash and cash equivalents.

Country% of portfolio
South Korea13.1%
United States1.1%
Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
Return of

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: 21

(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 fees1.18%
Distribution and service (12b-1) fees0.25%
Other expenses0.30%
Total annual fund operating expenses1.73%
Fee waivers and expense reimbursements(0.03%)
Total annual fund operating expenses after fee waivers and expense reimbursements1.70%

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 1.45% of the Fund's average daily net assets from May 2, 2016 through May 2, 2017 for all share classes other than Class R6, and 1.32% of the Fund's Class R6 shares' 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 Emerging Markets Fund Quarterly commentary September 30, 2016

Market review

The MSCI Emerging Markets Index rose 9% during the third quarter of 2016, marking the strongest quarterly gain in more than four years and significantly outpacing developed markets (source: Bloomberg). Positive drivers of performance included a sustained recovery in commodity prices, expectations for a continued slow pace of interest rate increases by the U.S. Federal Reserve, evidence of economic stabilization in China and Brazil, and strong liquidity inflows into the emerging markets asset class.

Among regions, Asia posted the strongest returns, led by China. Despite lingering concerns about a protracted slowdown in the Chinese economy, evidence seems to point to stabilization in the near term. In addition, the approval of the Hong Kong-Shenzhen Connect system — enabling foreign investors to trade Chinese stocks through Hong Kong brokers — sparked increased investor interest in Hong Kong–listed Chinese stocks. Among sectors, technology and consumer discretionary delivered the highest returns as consumption of online content and services continued to grow at a rapid pace, benefiting e-commerce companies such as Alibaba Group Holding (which is held in the Fund). Financials also performed relatively well, with stabilizing economic data allaying concerns about asset quality in the banking sector.

In addition to China, Taiwan and Korea outperformed. In Taiwan, high dividend yields seemed to appeal to investors seeking income in an environment of low global interest rates. The technology sector also benefited from robust smartphone demand. In Korea, currency appreciation bolstered overall returns, while at the sector level, technology and energy outperformed the most.

Markets in South and Southeast Asia generally underperformed the MSCI Emerging Markets Index. Indonesia fared relatively better on the back of stronger commodity prices and liquidity inflows resulting from a tax amnesty bill. In Thailand, equities rose due to optimism stemming from the constitutional referendum and improving economic data. In India, positive sentiment continued to drive the equity market higher amid favorable monsoons and a smooth transition of the central bank governorship. In the Philippines, equity returns were negative as controversial comments made by the new president gave investors pause.

In Latin America, Brazil was the lone outperforming market as economic data showed signs of stabilization and political noise seemed to diminish. The energy and materials sectors performed particularly well on the back of firm commodity prices. In contrast, Mexico underperformed the most, chiefly due to currency depreciation and perceptions that the economy may be affected by the outcome of the upcoming U.S. presidential election.

In the EMEA (Europe, Middle East, and Africa) region, Egypt, Hungary, and Russia relatively outperformed. Egyptian equities rallied in anticipation of a loan from the International Monetary Fund (IMF). In Hungary, equities rebounded from an initial selloff following the United Kingdom’s vote to leave the European Union. In Russia, the benefits of rising oil prices spread to other sectors including consumer and financials. In South Africa, strength in both the rand and metals prices provided a favorable backdrop for financial and consumer stocks. In contrast, both equities and the lira sold off in Turkey, following a failed coup attempt that raised political uncertainty and investor risk aversion.

Among sectors, technology outperformed the most, while utilities, consumer staples, and telecommunications underperformed.

Within the Fund

Delaware Emerging Markets Fund (Institutional Class shares and Class A shares at net asset value) outperformed its benchmark, the MSCI Emerging Markets Index, during the third quarter of 2016.

Brazil and China were the main contributors to performance primarily due to stock selection. In Brazil, shares of B2W Cia Digital rebounded from their recent underperformance as the company raised capital through a rights offering. Shares of Petrobras rose as the company continued to execute on its plan to reduce debt through asset sales. Shares of Eletrobras continued to rally due to expectations for improved operating performance following asset divestments and the installment of new management.

In China, SINA and Weibo were the largest contributors to performance. SINA operates an online portal and owns a majority stake in Weibo, a leading social media platform. Shares of Weibo rose as the company showed progress in generating advertising revenue on its platform, and this in turn has boosted SINA’s valuation. In addition, SINA distributed a small portion of its Weibo holdings to shareholders, which investors seemed to view favorably from a corporate governance perspective.

Among other countries, India and Argentina contributed to performance. In India, Reliance Industries outperformed as the company’s foray into 4G mobile services appeared to garner significant consumer interest. The Fund’s underweight position in the software sector was also favorable. In Argentina, shares of Cresud rose on the back of improving investor sentiment toward the economy.

On the negative side, Russia detracted the most from performance due to unfavorable stock selection. Shares of Internet company Yandex paused following their strong rally in the second quarter. In the energy sector, shares of Transneft declined as the company rebuffed shareholder requests to increase dividends.

The Fund’s overweight in Turkey detracted from performance as the failed coup attempt against President Erdogan prompted a broad selloff in equities and currency depreciation. Shares of Akbank, a bellwether for the economy, declined. Shares of mobile operator Turkcell also underperformed due to intense competition and rising capital spending.

Among sectors, technology contributed the most to performance due to the Fund’s overweight positions in SINA and Weibo. Consumer discretionary also outperformed due to the Fund’s holdings in B2W Cia Digital and Gol Linhas Aereas Inteligentes in Brazil. In contrast, financials detracted the most from performance. In addition to Akbank in Turkey, shares of Grupo Financiero Santander Mexico declined in sympathy with the broader Mexican market.


In our view, emerging markets are likely to remain volatile, yet our long-term positive view remains intact. While economic growth may continue to face near-term headwinds, we believe that monetary and fiscal policies, coupled with government reform measures, should provide support. With respect to China, we continue to believe that the economy will muddle through, supported by structural growth in consumption, improvement in living standards, and selective policy support from the government.

Despite a challenging macroeconomic backdrop, we believe that there are pockets of opportunities for long-term stock appreciation driven by structural demographic shifts, technology adoption, implementation of government policy, improvement in corporate governance, and industry consolidation. 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 that we expect to benefit from long-term changes in how people in emerging markets live and work. Sectors we currently favor include technology and telecommunications.


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 800 523-1918. 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$15.11n/a

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

$2.0 billion all share classes

Overall Morningstar RatingTM

Load waived

With load

Class A shares (as of 10/31/2016)
Load waivedWith loadNo. of funds
3 Yrs32612
5 Yrs43449
10 Yrs44195
Morningstar categoryDiversified Emerging Mkts

(View Morningstar disclosure)

Morningstar ranking (as of 10/31/2016)

YTD ranking33 / 883
1 year26 / 867
3 years181 / 612
5 years33 / 449
10 years12 / 195
Morningstar categoryDiversified Emerging Mkts

(View Morningstar disclosure)

Lipper ranking (as of 10/31/2016)

YTD ranking41 / 853
1 year28 / 835
3 years168 / 591
5 years42 / 433
10 years14 / 173
Lipper classificationEmerging Markets Funds

(View Lipper disclosure)

Benchmark, peer group

MSCI Emerging Markets Index (view definition)

Morningstar Diversified Emerging Markets Category (view definition)

Lipper Emerging Markets Funds Average (view definition)

Additional information