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 (09/30/2016)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.94%7.73%9.22%15.35%8.24%7.50%02/03/1994
Russell 1000 Growth Index6.00%13.76%11.83%16.59%8.85%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)7.27%7.73%9.22%15.35%8.24%7.50%02/03/1994
Russell 1000 Growth Index4.58%13.76%11.83%16.59%8.85%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 09/30/2016Russell 1000 Growth Index
Number of holdings30598
Market cap (median)$36.64 billion$9.02 billion
Market cap (weighted average)$123.16 billion$151.60 billion
Portfolio turnover (last fiscal year)40%n/a
Beta (relative to Russell 1000 Growth Index) (view definition)1.01n/a
Annualized standard deviation, 3 years (view definition)12.65n/a
Portfolio composition as of 09/30/2016Total may not equal 100% due to rounding.
Domestic equities97.8%
International equities & depositary receipts1.8%
Cash and cash equivalents0.4%
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
Visa Inc.5.9%
PayPal Holdings Inc.5.5%
Celgene Corp.5.0%
Microsoft Corp.4.8%
Crown Castle International Corp.4.8%
Mastercard Inc.4.5%
Allergan plc4.4%
eBay Inc.4.3%
Biogen Inc.4.3%
Total % Portfolio in Top 10 holdings48.8%

Equity sectors as of 09/30/2016

List excludes cash and cash equivalents.

Information technology50.0%0.0%
Consumer discretionary14.0%0.0%
Real Estate7.1%0.0%
Consumer staples1.7%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: 22

(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 September 30, 2016

Within the Fund

For the third quarter of 2016, Delaware U.S. Growth Fund (Institutional Class shares and Class A shares at net asset value) outperformed its benchmark, the Russell 1000® Growth Index. While performance was largely driven by our stock exposure, on a sector level, strong performance in information technology was partially offset by weak performance in the healthcare and real estate sectors.

Qualcomm contributed to the Fund’s performance during the third quarter. Recovered royalties from China and improved smartphone demand led the company to report positive financial results, beating guidance for revenue. We believe that many of the headwinds that have been plaguing the company are beginning to transition to tailwinds. In addition, the company’s changes to operating expense, which it made several quarters ago, appear to be leading to positive changes in financial metrics. Furthermore, the stock rose late in the quarter amid rumors of a potential strategic acquisition.

eBay contributed to performance in the third quarter. The company beat earnings and demonstrated to investors its ability to generate growth. Post spin from PayPal, eBay has launched initiatives designed to spark growth, including a new user interface that allows for complete price discovery between new, refurbished, and used items. The results suggest to us that we are beginning to see some of the improvements in optimization of the search engine, the overall customer experience in marketplaces, and the mobile app. Additionally, the company is continuing to make improvements to the seller experience via eBay’s Seller Hub. We believe that the company could be at the beginning of a multiple quarter improvement in user experience.

Biogen was also a contributor to performance during the quarter. The company released second quarter financial results, showing double-digit revenue growth year over year and beating estimates by $100 million. The balance sheet looks healthy to us, and the company is focused on buying back stock and on other areas to grow shareholder returns. In August, the stock climbed partly due to rumors of takeover offers from larger pharmaceutical companies. Later in the quarter, the company received positive data from the Tecfidera clinical trial program further affirming the drug’s efficacy and safety profile for people living with multiple sclerosis. We continue to believe the company’s existing product offerings, attractive and robust pipeline, and progress in the ever-growing field of neurodegenerative and cognitive impairment diseases should allow for future growth.

Liberty Interactive detracted from the Fund’s performance during the third quarter. The company has experienced significant headwinds in the choppy retail environment leading to earnings revisions and multiple contractions. While the level of domestic sales volatility experienced from June–August was surprising to investors — given the historical durability of the QVC model — we do not believe the company is in permanent decline and therefore we anticipate a return to growth. The company has maintained stable viewership, performed well in its international segments, and has upside potential from the acquisition of Zulily, which has already begun generating returns that have beat expectations.

Novo Nordisk also detracted from performance during the third quarter. The company reduced full-year guidance by taking down annual sales growth and operating profit growth. The company also announced that 2017 net prices are expected to be moderately lower in the U.S. market as a result of its U.S. formulary negotiations and less overall pricing power. Despite these headwinds, we believe the company should continue to see a growing need for its products; unfortunately, diabetes is rising globally due to rising obesity rates in developing markets and a growing middle class in emerging markets. In addition, we believe the company’s biologics franchise, driven by oral insulin, has significant upside potential.

Finally, Crown Castle detracted from performance during the third quarter. In early July, the stock was at an all-time high, as investors were seeking higher dividend yields. However, yield stocks sold off in front of investor concerns over a U.S. Federal Reserve interest rate hike later in the quarter.


Despite positive absolute returns in the equity market during recent years, we believe the ever-changing market sentiment demonstrates that there are more than just fundamental factors affecting stock prices. A lack of confidence in the fundamental outlook suggests to us 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 10/21/2016)

Institutional ClassPriceNet change
Max offer price$25.12n/a

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

$3.0 billion all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 09/30/2016)
RatingNo. of funds
3 Yrs31482
5 Yrs31285
10 Yrs4924
Morningstar categoryLarge Growth

(View Morningstar disclosure)

Morningstar ranking (as of 09/30/2016)

YTD ranking1566 / 1651
1 year1342 / 1629
3 years832 / 1482
5 years575 / 1285
10 years291 / 924
Morningstar categoryLarge Growth

(View Morningstar disclosure)

Lipper ranking (as of 09/30/2016)

YTD ranking658 / 706
1 year590 / 694
3 years429 / 628
5 years259 / 549
10 years146 / 398
Lipper classificationLarge-Cap Growth Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 1000® Growth Index (view definition)

Morningstar Large Growth Category (view definition)

Lipper Large-Cap Growth Funds Average (view definition)

Additional information