The Focus Smid-Cap Growth Equity Portfolio*


The Focus Smid-Cap Growth Equity Portfolio seeks long-term capital appreciation.


The Portfolio invests primarily in common stocks of growth-oriented companies that its portfolio managers believe have long-term capital appreciation potential and expect to grow faster than the U.S. economy. Under normal circumstances, the Portfolio invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities of small- and mid-capitalization companies (80% policy). The Portfolio’s 80% policy may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change. For purposes of this Portfolio, small-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell 2000® Growth Index, and mid-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell Midcap® Growth Index. The two indices listed above are for purposes of determining range and not for targeting portfolio management. As of Dec. 31, 2015, the Russell 2000 Growth Index had a market capitalization range between $18.66 million and $6.5 billion, and the Russell Midcap Growth Index had a market capitalization range between $717.6 million and $30.5 billion. The market capitalization ranges for the Russell 2000 Growth Index and Russell Midcap Growth Index will change on a periodic basis. A company’s market capitalization is determined based on its current market capitalization.

Under normal circumstances, the Portfolio will invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of small and mid-capitalization companies (80% Policy). The Portfolio’s 80% Policy may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change.

Using a bottom-up approach, the portfolio managers seek to select securities of companies that have large market opportunities. Companies that have large market opportunities are those that, in the portfolio managers' opinion, may have a large demand or market for their goods or services. The portfolio managers also consider a company’s operational efficiencies, management’s plans for capital allocation, and the company’s shareholder orientation. All of these factors give the portfolio managers insight into the outlook for a company, helping the portfolio managers identify companies poised for sustainable free cash-flow growth. The portfolio managers believe that sustainable free cash-flow growth, if it occurs, may result in price appreciation for the company’s stock.

The Portfolio generally holds 25 to 30 stocks, although from time to time the Portfolio may hold fewer or more names depending on our assessment of the investment opportunities available. In addition, the portfolio managers maintain a diversified portfolio representing a number of different industries. Such an approach helps to minimize the impact that any one security or industry could have on the Portfolio if the security or industry were to experience a period of slow or declining growth.

Because the Portfolio’s objective is capital appreciation, the amount of dividend income that a stock provides is only an incidental consideration.

The Portfolio may engage in options and futures transactions. In addition, the Portfolio may invest up to 20% of its assets in foreign securities, which may include global depositary receipts (GDRs) and, without limitation, in sponsored and unsponsored American depositary receipts (ADRs) that are actively traded in the United States. The Portfolio may invest up to 10% of its net assets in emerging market securities.

The Portfolio may invest in real estate investment trusts (REITs).

In unusual market conditions, in order to meet redemption requests, for temporary defensive purposes and pending investment, the Portfolio may hold a substantial portion of its assets in cash or short-term, debt obligations.

Portfolio information
Inception date12/01/2003
Dividends paid (if any)Annually
Capital gains paid (if any)December
Portfolio identifiers
Investment minimums
Initial investment**$1,000,000
Subsequent InvestmentsNo minimum

**In the aggregate across all Portfolios of the Delaware Pooled Trust.

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 (06/30/2016)

as of quarter-end (06/30/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.57%0.75%11.20%9.73%11.31%10.22%12/01/2003
Russell 2500 Growth Index-0.03%-7.69%9.06%9.27%7.96%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.56%0.75%11.20%9.73%11.31%10.22%12/01/2003
Russell 2500 Growth Index2.70%-7.69%9.06%9.27%7.96%n/a

Returns for less than one year are not annualized.

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 06/30/2016
Number of holdings30
Market cap (median)$2.96 billion
Market cap (weighted average)$3.70 billion
Portfolio turnover (last fiscal year)21%
Beta, 3 years (relative to Russell 2500 Growth Index) (view definition)0.69
Annualized standard deviation, 3 years (view definition)11.38
Top 10 holdings as of 06/30/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Sally Beauty Holdings Inc.6.1%
Bio-Techne Corp.5.9%
Equity Commonwealth5.5%
Blackbaud Inc.5.3%
Graco Inc.4.9%
DineEquity Inc.4.4%
Dunkin' Brands Group Inc.4.2%
j2 Global Inc.4.1%
ABIOMED Inc.4.1%
Outfront Media Inc.3.9%
Total % Portfolio in Top 10 holdings48.4%

Top sectors as of 06/30/2016

List excludes cash and cash equivalents.

Sector% of portfolio
Consumer discretionary28.5%
Financial services15.2%
Producer durables11.5%

List excludes cash and cash equivalents.

Distribution history - annual distributions (Original Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment

1If a Portfolio 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 Portfolio will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Portfolio'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 Portfolio (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.

Investment manager

Delaware Management Company, a series of Delaware Management Business Trust (a Delaware statutory trust)


Jackson Square Partners, LLC

Chris Bonavico

Christopher J. Bonavico, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: December 2005

Years of industry experience: 28

(View bio)

Ken Broad

Kenneth F. Broad, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: December 2005

Years of industry experience: 27

(View bio)

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Purchase reimbursement feesnone
Redemption reimbursement feesnone
Annual portfolio operating expenses
Management fees0.75%
Distribution and service (12b-1) feesnone
Other expenses0.17%
Total annual portfolio operating expenses0.92%
Fee waivers and expense reimbursementsnone
Total annual portfolio operating expenses after fee waivers and expense reimbursements0.92%

1The Portfolio’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, expenses, 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 portfolio operating expenses from exceeding 0.92% of the Portfolio's average daily net assets from Feb. 26, 2016 through Feb. 28, 2017. The waivers and reimbursements may only be terminated by agreement of the Manager and the Portfolio.

*Proposed reorganization

On May 19, 2016, the Board of Trustees of the Trust approved the submission of an Agreement and Plan of Reorganization to shareholders of The Large-Cap Growth Equity Portfolio, The Focus Smid-Cap Growth Equity Portfolio, and The Select 20 Portfolio (each an “Acquired Fund” and together, the “Acquired Funds”) providing for the reorganization of the Acquired Funds with and into Jackson Square Large-Cap Growth Fund, Jackson Square SMID-Cap Growth Fund, and Jackson Square Select 20 Growth Fund (each an “Acquiring Fund” and together, the “Acquiring Funds”), respectively (the “Reorganization”). Each Acquiring Fund is a series of Managed Portfolio Series administered by US Bancorp Fund Services, LLC. Jackson Square Partners, LLC (“JSP”), currently the sub-advisor to the Acquired Funds, is the investment advisor to the Acquiring Funds.

The Reorganization is subject to the approval of the shareholders of each Acquired Fund and is intended to be a tax-free transaction. On the date of the Reorganization, each Acquired Fund will exchange all of its assets at net asset value for shares of the corresponding Acquiring Fund. Shareholders of each Acquired Fund will receive shares of the corresponding Acquiring Fund with a value equal to the net asset value of their ownership interests in the Acquired Fund at the date of the Reorganization. More information about the proposed Reorganization will be provided to shareholders in the proxy materials. If approved by shareholders of the Acquired Funds, the Reorganization is expected to occur in the third quarter of 2016.

Jackson Square Partners, LLC (JSP), a U.S. registered investment advisor, is the sub-advisor to the Portfolio. As sub-advisor, JSP is responsible for day-to-day management of the Portfolio’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.

All third-party marks cited are the property of their respective owners.

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.

Carefully consider the Portfolio's investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Portfolio's prospectus, if available, its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 231-8002. Investors should read the prospectus, and, if available, the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Because the Portfolio expects to hold a concentrated portfolio of a limited number of securities, the Portfolio's risk is increased because each investment has a greater effect on the Portfolio's overall performance.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

The Portfolio is distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Not FDIC Insured | No Bank Guarantee | May Lose Value

(16765) 6/16

Fund Finder

Daily pricing (as of 07/29/2016)

Original ClassPriceNet change
Max offer price$18.71n/a

Total net assets (as of 06/30/2016)

$60.1 million all share classes

Lipper ranking (as of 06/30/2016)

YTD ranking132 / 571
1 year35 / 556
3 years14 / 491
5 years63 / 440
10 years4 / 311
Lipper classificationSmall-Cap Growth Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 2500 Growth Index (view definition)

Lipper Small-Cap Growth Funds Average (view definition)

Additional information