Delaware U.S. Growth Fund


Delaware U.S. Growth Fund seeks long-term capital appreciation by investing in equity securities of companies we believe have the potential for sustainable free cash flow growth.


The Fund invests in stocks of medium- to large-sized companies that its portfolio managers believe to have long-term capital appreciation potential and are expected to grow faster than the U.S. economy.

Fund information
Inception date02/03/1994
Dividends paid (if any)Annually
Capital gains paid (if any)November or December
Fund identifiers

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 (05/31/2016)

as of quarter-end (03/31/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-4.57%-4.87%10.89%11.80%7.89%7.44%02/03/1994
Russell 1000 Growth Index1.76%1.61%12.50%12.11%8.78%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-6.40%-4.24%10.59%11.96%6.86%7.40%02/03/1994
Russell 1000 Growth Index0.74%2.52%13.61%12.38%8.28%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

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Portfolio characteristics - as of 05/31/2016Russell 1000 Growth Index
Number of holdings28634
Market cap (median)$32.99 billion$8.61 billion
Market cap (weighted average)$119.01 billion$135.56 billion
Portfolio turnover (last fiscal year)40%n/a
Beta (relative to Russell 1000 Growth Index) (view definition)0.97n/a
Annualized standard deviation, 3 years (view definition)12.42n/a
Portfolio composition as of 05/31/2016Total may not equal 100% due to rounding.
Domestic equities95.6%
International equities & depositary receipts3.0%
Cash and cash equivalents1.5%
Top 10 equity holdings as of 05/31/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Visa Inc.5.8%
Celgene Corp.5.2%
Crown Castle International Corp.4.7%
Allergan plc4.7%
Electronic Arts Inc.4.7%
PayPal Holdings Inc.4.6%
Liberty Interactive Corp. QVC Group4.6%
Microsoft Corp.4.6%
MasterCard Inc.4.4%
Total % Portfolio in Top 10 holdings48.4%

Equity sectors as of 05/31/2016

List excludes cash and cash equivalents.

Financial services26.7%0.0%
Consumer discretionary20.8%0.0%
Consumer staples4.2%0.0%
Distribution history - annual distributions (Institutional Class)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.

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Investment manager

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


Jackson Square Partners, LLC

Jeff VanHarte

Jeffrey S. Van Harte, CFA

Chairman, Chief Investment Officer — Jackson Square Partners, LLC

Start date on the Fund: April 2005

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: April 2005

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: September 2005

Years of industry experience: 21

(View bio)

Daniel J. Prislin, CFA

Portfolio Manager, Equity Analyst — Jackson Square Partners, LLC

Start date on the Fund: April 2005

Years of industry experience: 22

(View bio)

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.55%
Distribution and service (12b-1) feesnone
Other expenses0.24%
Total annual fund operating expenses0.79%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.79%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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Delaware U.S. Growth Fund Quarterly commentary March 31, 2016

Within the Fund

For the first quarter of 2016, Delaware U.S. Growth Fund (Institutional Class shares and Class A shares at net asset value) underperformed its benchmark, the Russell 1000® Growth Index. While performance was largely driven by our stock exposure, on a sector level, weak relative performance in the healthcare and consumer discretionary sectors were the main detractors from performance.

Equinix contributed to the Fund’s performance during the quarter. The company completed its acquisition of TelecityGroup and announced further expansion plans that include additional data centers and potential acquisitions. The company continues to benefit from significant opportunities associated with cloud computing and its disruption in the information technology supply chain. Increased globalization — combined with the need for a secure and accessible network to meet the needs of a dispersed user base — continue to create significant demand for a company like Equinix. We believe its innovative product offerings allow the company to be well positioned in a technology spending environment that is focused on addressing the needs of enterprises that are struggling to maintain the highest level of network performance and quality of service for global users.

Nielsen Holdings, a relatively new position in the Fund’s portfolio, contributed to performance during the quarter. The company reported better-than-expected financial results and continues to return capital to shareholders through a dividend and share repurchase program. Additionally, the company reported an acquisition of Informate Mobile Intelligence as Nielsen looks to expand its mobile measurement capabilities and expand its suite of products within the mobile space globally. While acquisitions and investments into the company’s technology, infrastructure, and new products may affect margins in the near term, we are optimistic for the company’s future growth prospects, especially outside the United States and within the mobile space.

PayPal Holdings was also a contributor to performance during the quarter. The company reported relatively strong financial results and an increase in market share that seemed to help alleviate, in part, investors’ concerns about the company’s ability to maintain its competitive position and growth trajectory amid increased competition. The company also announced a $2 billion stock buyback plan which the market appeared to view favorably. Additionally, despite formidable competition, PayPal’s digital peer-to-peer payment application, Venmo, continues to see strong growth, especially among millennials. We believe that Venmo, a fairly recent acquisition of PayPal, should continue to see increased usage, especially as it expands into the merchant space, and becomes a meaningful driver of growth for the company moving forward.

Valeant Pharmaceuticals International detracted from the Fund’s performance during the quarter, as the company experienced multiple market moving events. The company released disappointing earnings and forward guidance and announced a delayed timeline to release its audited financials, which heightened investor concerns about a possible technical default on its bank debt. A “perfect storm” of negative fundamental developments has occurred at Valeant over the past several months — many of which we believe were caused by the company, but some of which were exacerbated by industry dynamics and negative investor sentiment toward healthcare stocks more broadly. Our target weight over the period has not exceeded a mid-portfolio weight. It is currently a low weight in the portfolio to reflect a higher risk-reward profile. The situation with Valeant is extremely fluid, and we continue to closely monitor near-term data points.

Celgene was a detractor from performance during the quarter. The company reported weaker-than-expected earnings results and forward guidance driven, in part, by negative foreign currency effects, an increase in research and developments costs, and slowing sales in its key cancer drug, Revlimid. Additionally, the company announced changes to its senior management. We are not overly concerned with the news and feel the long-term prospects for the company’s key drug continue to appear robust as the drug seems poised to gain approval for new indications within new markets. Celgene continues to be a leader in the treatment of blood cancer with a growing pipeline of breast, lung, and pancreatic cancer treatments. We believe that the company is well positioned to continue to benefit from growth prospects driven by additional indications for its drugs, by increased use of existing drugs, and by international growth opportunities.

Allergan also detracted from performance during the quarter. The stock, along with others in the pharmaceutical industry, experienced weakness due, in part, to larger specialty pharmaceutical companies being under intensified pressure in the wake of Valeant Pharmaceutical’s ongoing issues. Additionally, investors grew concerned about the proposed merger between Pfizer and Allergan. We continue to believe that Allergan operates at a high level, driven by the core ophthalmology franchise and by the broader use of Botox in both cosmetic and other medical indications. Since Allergan recently merged with Actavis, we continue to assess the investment merits of a combined Allergan/Actavis entity.


Despite positive absolute returns in the equity market during recent years, the ever-changing market sentiment demonstrates to us that there are more than just fundamental factors affecting stock prices. In our view, a lack of confidence in the fundamental outlook suggests that many investors appear to be struggling with accurately predicting the pace of global economic recovery and are assessing external factors that threaten economic fundamentals (for example, central bank actions and fiscal policy debates across the globe). While some fundamentals in various geographies may be trending in a positive direction (from a very low base during the global financial crisis in 2008-2009), we don’t believe we are entering into a typical post-recessionary global boom cycle. Rather, we believe the lingering effects of the credit crisis could lead to moderate growth, at best, for the intermediate term. In such a tenuous environment, we believe the quality of a company’s business model, competitive position, and management may prove to be of utmost importance.

Regardless of the economic outcome, we remain consistent in our long-term investment philosophy: We want to own what we view as strong secular-growth companies with solid business models and competitive positions that we believe can grow market share and have the potential to deliver shareholder value in a variety of market environments.


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.

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

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 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 800 362-7500. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

The Funds are 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

Fund Finder

Daily pricing (as of 06/24/2016)

Institutional ClassPriceNet change
Max offer price$23.10n/a

Total net assets (as of 05/31/2016)

$3.4 billion all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 05/31/2016)
RatingNo. of funds
3 Yrs31467
5 Yrs41288
10 Yrs3932
Morningstar categoryLarge Growth

(View Morningstar disclosure)

Lipper ranking (as of 05/31/2016)

YTD ranking661 / 715
1 year603 / 670
3 years359 / 616
5 years116 / 546
10 years166 / 394
Lipper classificationLarge-Cap Growth Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 1000® Growth Index (view definition)

Lipper Large-Cap Growth Funds Average (view definition)

Additional information