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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 (02/28/2017)

as of quarter-end (12/31/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.16%17.24%-0.46%4.54%0.56%5.92%10/31/1991
Max offer price-2.76%10.50%-2.40%3.30%-0.04%5.67%
MSCI EAFE Index (Gross)4.39%16.31%-0.17%5.63%1.50%n/a
MSCI EAFE Index (Net)4.37%15.75%-0.62%5.16%1.03%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.84%4.74%-1.35%6.15%0.37%5.83%10/31/1991
Max offer price-6.51%-1.28%-3.28%4.91%-0.22%5.58%
MSCI EAFE Index (Gross)-0.68%1.51%-1.15%7.02%1.22%n/a
MSCI EAFE Index (Net)-0.71%1.00%-1.60%6.53%0.75%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 02/28/2017MSCI EAFE Index (Net)
Number of holdings49922
Market cap (median)$27.42 billion$9.30 billion
Market cap (weighted average)$54.52 billion$54.33 billion
Portfolio turnover (last fiscal year)13%n/a
Beta (relative to MSCI EAFE Index (Net)) (view definition)0.93n/a
SEC 30-day yield with waiver (view definition)1.23%
SEC 30-day yield without waiver (view definition)1.23%
Annualized standard deviation, 3 years (view definition)11.79n/a
Portfolio composition as of 02/28/2017Total may not equal 100% due to rounding.
International equities & depositary receipts97.1%
Cash and cash equivalents2.9%
Top 10 equity holdings as of 02/28/2017
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.4.0%
Samsung Electronics Co. Ltd.3.4%
ITOCHU Corp.3.4%
Nordea Bank AB3.3%
Nippon Telegraph & Telephone Corp.3.1%
Toyota Motor Corp.3.1%
Novartis AG3.0%
Vinci S.A.3.0%
East Japan Railway Co.2.7%
Total % Portfolio in Top 10 holdings32.4%

Top 10 countries as of 02/28/2017

List excludes cash and cash equivalents.

Country% of portfolio
United Kingdom11.9%
Hong Kong4.4%
South Korea3.4%
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.

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 December 31, 2016

Within the Fund

Delaware International Value Equity Fund (Institutional Class shares and Class A shares at net asset value) underperformed its benchmark, the MSCI EAFE Index, for the fourth quarter of 2016.

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

On a regional basis, strong stock selection in the euro zone and Japan more than offset weak stock selection in Asia Pacific ex Japan, Europe ex–euro zone, and the United Kingdom. Net currency effect was positive. Exposure to the Canadian dollar, and an overweight exposure the Hong Kong dollar and U.S. dollar more than offset the adverse effect from an underweight exposure to the British pound and Australian dollar.

Prospective global market drivers and general outlook

The Fund’s trading activity during the year was centered on paring back some of our successful investments that were approaching their targets and redeploying the proceeds on what we viewed as more attractively valued stocks. This activity involved positions across a variety of sectors and regions, but did not result in material changes to portfolio positioning with respect to those measures.

While we are encouraged by the market’s strong performance beyond the volatility of February and June 2016, some elements of the global financial picture remain uncertain. Even after the November surge, bond yields remain historically low. This, combined with persistently slow growth, suggests to us an environment in which investment returns may be modest. The market has been facing a conundrum: both a scarcity of conviction that economies will reaccelerate along the lines of past cycles, as well as central bank efforts to prevent further weakness.

Recent market action suggests to us a greater sense of optimism in the air, but much remains to be proven. At the current 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 appear to 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 are confident that success in equity investing reflects the varying ways in which company managements navigate these changes, and how efficient and focused they are in doing so. We believe that the qualities that drive this success can be recognized and, when accompanied by attractive valuation, can potentially lead to strong and sustained long-term 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 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 03/22/2017)

Class APriceNet change
Max offer price$14.49n/a

Total net assets (as of 02/28/2017)

$259.7 million all share classes

Overall Morningstar RatingTM

Class A shares (as of 02/28/2017)
Class ANo. of funds
3 Yrs4275
5 Yrs3223
10 Yrs3139
Morningstar categoryForeign Large Value

(View Morningstar disclosure)

Morningstar ranking (as of 02/28/2017)

YTD ranking285 / 352
1 year142 / 333
3 years75 / 275
5 years88 / 223
10 years59 / 139
Morningstar categoryForeign Large Value

(View Morningstar disclosure)

Lipper ranking (as of 02/28/2017)

YTD ranking154 / 164
1 year63 / 153
3 years38 / 128
5 years50 / 105
10 years30 / 69
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