Delaware Investments Delaware Investments Delaware Investments

Delaware Foundation® Moderate Allocation Fund


Delaware Foundation Moderate Allocation Fund seeks capital appreciation with current income as a secondary objective.


The Fund invests in a combination of underlying securities, using an active allocation approach and representing a variety of asset classes and investment styles that are managed by the advisor.

Fund information
Inception date12/31/1997
Dividends paid (if any)Quarterly
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 (09/30/2016)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)5.72%8.43%4.37%7.94%5.25%4.87%12/31/1997
Max offer price-0.37%2.24%2.34%6.68%4.62%4.54%
Bloomberg Barclays U.S. Aggregate Index5.80%5.19%4.03%3.08%4.79%n/a
S&P 500 Index7.84%15.43%11.16%16.37%7.24%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.36%8.43%4.37%7.94%5.25%4.87%12/31/1997
Max offer price-2.57%2.24%2.34%6.68%4.62%4.54%
Bloomberg Barclays U.S. Aggregate Index0.46%5.19%4.03%3.08%4.79%n/a
S&P 500 Index3.85%15.43%11.16%16.37%7.24%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 July 29, 2016 to July 29, 2017. Please see the fee table in the Fund's prospectus for more information. Additionally, the Fund's Class A shares are subject to a blended 12b-1 fee of 0.10% on all shares acquired prior to June 1, 1992 and 0.25% on all shares acquired on or after June 1, 1992.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 09/30/2016Idx Blend Foundation Moderate
Number of holdings1,445n/a
Portfolio turnover (last fiscal year)131%%
SEC 30-day yield with waiver (view definition)1.44%
SEC 30-day yield without waiver (view definition)1.39%
Annualized standard deviation, 3 years (view definition)6.79n/a
Asset allocations* (as of 09/30/2016)
Range Strategic policy weight Actual**
Equity asset class (total) 40-70%60%54.9%
U.S. equity asset class10-40%30%27.9%
U.S. large-cap core6.5%
U.S. large-cap growth5.9%
U.S. large-cap value9.0%
U.S. small-cap core6.6%
U.S. small-cap growth0.0%
U.S. small-cap value0.0%
International equity asset class10-40%22.5%17.3%
International growth7.2%
International small-cap growth0.0%
International value10.1%
Global real estate equity asset class0-15%0%3.1%
Global ex-U.S. real estate0.0%
U.S. real estate3.1%
Emerging markets asset class0-15%7.5%6.6%
Emerging markets6.6%
Emerging markets opportunities0.0%
Emerging markets small-cap0.0%
Fixed income asset class (total) 30-60%40%45.1%
Diversified fixed income asset class30-60%40%45.1%
Diversified fixed income20-50%38%44.8%
Money market / cash equivalents0-15%2%0.3%

*The percentages listed in this chart for "Range," "Strategic policy weight," and "Actual" represent the proportion of the Fund's assets allocated to the portfolio manager responsible for investing in a particular asset class or investment style. Each individual manager is responsible for determining how his or her assets are invested, subject to the constraints outlined in the Fund's prospectus. The "Range" and "Strategic policy weight" are as of the prospectus date.

**Total may not equal 100% due to rounding.

Top 10 equity holdings as of 09/30/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Novartis AG0.5%
Samsung Electronics Co. Ltd.0.5%
Chevron Corp.0.4%
AT&T Inc.0.4%
Facebook Inc.0.4%
Microsoft Corp.0.4%
Alphabet Inc.0.4%
Merck & Co. Inc.0.4%
Intel Corp.0.4%
Total % Portfolio in Top 10 holdings4.2%
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.

Jackson Square Partners, LLC (JSP), a U.S. registered investment advisor, is the sub-advisor to the Fund's U.S. large-cap growth sleeve. As sub-advisor, JSP is responsible for day-to-day management of its portion of the Fund’s assets. Although JSP serves as sub-advisor, the investment manager, Delaware Management Company (DMC), a series of Delaware Management Business Trust, has ultimate responsibility for all investment advisory services.

Paul Grillo

Paul Grillo, CFA

Senior Vice President, Co-Chief Investment Officer — Total Return Fixed Income Strategy

Start date on the Fund: September 2008

Years of industry experience: 35

(View bio)

Sharon Hill

Sharon Hill, Ph.D.

Senior Vice President, Head of Equity Quantitative Research and Analytics

Start date on the Fund: September 2008

Years of industry experience: 18

(View bio)

Francis X. Morris

Francis X. Morris 

Senior Vice President, Chief Investment Officer — Core Equity

Start date on the Fund: May 2004

Years of industry experience: 33

(View bio)

Bob Zenouzi

Bob Zenouzi 

Senior Vice President, Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

Start date on the Fund: September 2008

Years of industry experience: 30

(View bio)

Investment manager

Delaware Management Company, a series of Delaware Management Business Trust


Jackson Square Partners, LLC (Large-cap growth investment sleeve)

Jeff VanHarte

Jeffrey S. Van Harte, CFA

Chairman, Chief Investment Officer — Jackson Square Partners, LLC

Start date on the Fund: May 2014

Years of industry experience: 35

(View bio)

Chris Bonavico

Christopher J. Bonavico, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: May 2014

Years of industry experience: 28

(View bio)

Chris Ericksen

Christopher M. Ericksen, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: May 2014

Years of industry experience: 22

(View bio)

Daniel J. Prislin, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: May 2014

Years of industry experience: 22

(View bio)

Jackson Square Partners, LLC (JSP), a U.S. registered investment advisor, is the sub-advisor to the Fund's U.S. large-cap growth sleeve. As sub-advisor, JSP is responsible for day-to-day management of its portion of the Fund’s assets. Although JSP serves as sub-advisor, the investment manager, Delaware Management Company (DMC), a series of Delaware Management Business Trust, has ultimate responsibility for all investment advisory services.

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 fees0.65%
Distribution and service (12b-1) fees0.24%
Other expenses0.28%
Total annual fund operating expenses1.17%
Fee waivers and expense reimbursements(0.03%)
Total annual fund operating expenses after fee waivers and expense reimbursements1.14%

1 "Other expenses" have been restated to reflect future lower operating expenses.

2 The 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, 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 0.90% of the Fund's average daily net assets from July 29, 2016 through July 29, 2017. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund. Additionally, the Fund's Class A shares are subject to a blended 12b-1 fee of 0.10% on all shares acquired prior to June 1, 1992, and 0.25% on all shares acquired on or after June 1, 1992.

Delaware Foundation® Moderate Allocation Fund Quarterly commentary September 30, 2016

View printable commentary E-mail this page

This commentary is currently not available. Please check back later.

Market overview

All of the major equity indices rose during the third quarter of 2016, with the strongest performance coming from U.S. small-cap equities and emerging market equities. U.S. and global investment grade fixed income securities also delivered modestly positive returns.

Style Benchmark Index return for 3Q16 (in USD)
U.S. large-cap growth Russell 1000® Growth Index +4.6%
U.S. large-cap value Russell 1000® Value Index +3.5%
U.S. small-cap Russell 2000® Index +9.0%
International growth MSCI EAFE Growth Index (gross) +5.0%
International value MSCI EAFE Value Index (gross) +8.2%
Emerging markets MSCI Emerging Markets Index (gross) +9.2%
U.S. fixed income Bloomberg Barclays U.S. Aggregate Index +0.5%
Global fixed income Bloomberg Barclays Global Aggregate Index +0.8%

Sources: Bloomberg, MSCI, and Russell, October 2016

The price of oil declined during the third quarter of 2016, as did the prices of many other commodities. The S&P GSCI® and the Thomson Reuters/CoreCommodity CRB Index both dropped, and the spot price of gold also fell. All else equal, we believe a fall in commodity prices is likely to mean better margins for manufacturers, but lower profits for producers of oil, gas, and raw materials.

Category Benchmark 06/30/16 09/30/16 Change
Broad commodities S&P GSCI 374.0 364.5 -2.6%
Broad commodities Thomson Reuters/CoreCommodity CRB Index 192.6 186.3 -3.2%
Crude oil West Texas Intermediate spot 48.33 48.24 -0.2%
Gold New York spot price 1322.20 1315.75 -0.5%

Source: Bloomberg, October 2016

The currency markets were fairly active during the third quarter of 2016. The trade-weighted euro and the trade-weighted yen both rose, while the trade-weighted dollar dropped slightly during the quarter. The trade-weighted pound continued to fall, as the markets have remained dubious about the long-term outlook for the British economy. In general, an economy’s competitiveness tends to be enhanced by currency depreciation and tends to be impaired by currency appreciation.

Trade-weighted currency Source 06/30/16 09/30/16 Change
U.S. dollar (USD) U.S. Treasury via Bloomberg 96.1 95.5 -0.7%
Euro (EUR) Bank of England via Bloomberg 88.1 89.7 +1.8%
Sterling (GBP) Bank of England via Bloomberg 80.2 77.0 -4.0%
Japanese yen (JPY) Bank of England via Bloomberg 149.8 151.6 +1.2%

Source: Bloomberg, October 2016

Within the Funds

The Asset Allocation Committee’s decisions are taken collectively, and the weightings assigned to individual asset classes reflect the consensus of opinion across all members. During the quarter, the Committee reduced its exposure to U.S. large-cap equities, while remaining overweight in U.S. small-cap equities and in fixed income securities, and also increasing its tactical exposure to U.S. real estate investment trusts (REITs). The Committee also moved closer to neutrality in emerging market equities, though it remains underweight in foreign equities. As has been true for the past few years, the Committee remains underweight in cash and cash-like securities.

Relative to strategic policy weights
Asset class Underweight Neutral Overweight
U.S. large-cap core
U.S. large-cap growth
U.S. large-cap value
U.S. small-cap core
International growth
International value
Emerging markets
Diversified fixed income
Cash and cash equivalents

Notes: The graphic above is based on tactical positions of Delaware Foundation Funds relative to the strategic policy weights for each Fund, with tactical and strategic weights adjusted by total assets under management (AUM) in each Fund, and breakpoints at 0.5%, 1%, and 3%; weights reflect tactical positioning as of Sept. 30, 2016; actual sleeve weights may deviate from tactical weights due to different rates of asset appreciation and other factors; tactical weights may vary from time to time, and Delaware Investments makes no commitment to update this information in a timely manner; tactical weights are provided for information purposes only and should not be construed as asset allocation advice.


The Committee continues to believe that a global economic recovery will likely require consumers to begin spending more freely, and the available evidence indicates that this is starting to occur in the U.S. economy. There is still good reason to be apprehensive about the economic outlook for Europe, where proponents of austerity-based approaches continue to dominate policy making. The referendum in late June on whether Britain should leave the European Union seems to have increased the volatility of financial markets in Europe, and there are continuing market concerns about the outlook for banks in the euro zone. However, the Committee continues to believe that the global economy is gradually moving toward more normal conditions.

As described above, the Funds continue to have a slightly defensive position relative to their strategic policy weights. Nevertheless, the Committee continues to believe that the global macroeconomic environment may continue to improve, though probably at a rather slow pace. Over the medium term, the Funds’ commitment to global diversification may prove beneficial, as participating in a large number of different markets may help reduce the risk that any single market might deliver disappointing performance in any particular period.

Diversification may not protect against market risk.


Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

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.

This Fund is subject to the same risks as the underlying styles in which it invests.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.

If and when the Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.

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.

Risk controls and asset allocation models do not promise any level of performance or guarantee against loss of principal.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.

The Fund may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

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 10/20/2016)

Class APriceNet change
Max offer price$11.76n/a

Total net assets (as of 09/30/2016)

$278.2 million all share classes

Morningstar ranking (as of 09/30/2016)

YTD ranking594 / 939
1 year611 / 926
3 years662 / 826
5 years584 / 716
10 years234 / 492
Morningstar categoryAllocation--50% to 70% Equity

(View Morningstar disclosure)

Lipper ranking (as of 09/30/2016)

YTD ranking383 / 579
1 year324 / 567
3 years320 / 513
5 years242 / 441
10 years112 / 329
Lipper classificationMixed-Asset Target Allocation Moderate

(View Lipper disclosure)

Benchmark, peer group

S&P 500® Index (view definition)

Bloomberg Barclays U.S. Aggregate Index (view definition)

Morningstar Allocation — 50% to 70% Equity Category (view definition)

Lipper Mixed-Asset Target Allocation Moderate Funds Average (view definition)

Additional information