Optimum Large Cap Growth Fund seeks long-term growth of capital.
Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of large market capitalization companies (80% policy). This policy may be changed only upon 60 days’ prior notice to shareholders. For purposes of this Fund, large market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell 1000® Growth Index. As of June 30, 2016, the Russell 1000 Growth Index had a market capitalization range between $1.1 billion and $523.7 billion. The market capitalization range for this index will change on a periodic basis. A company’s market capitalization is based on its current market capitalization or its market capitalization at the time of the Fund’s investment. Companies whose market capitalization no longer meets this definition after purchase continue to be considered to have a large capitalization for purposes of this 80% policy.
The Fund intends to invest primarily in common stocks of U.S. companies, but it may also invest in other securities that a sub-advisor believes provide opportunities for capital growth, such as preferred stocks, warrants, and securities convertible into common stocks. In keeping with the Fund’s investment objective, the Fund may also invest in foreign securities, including American depositary receipts (ADRs) and other depositary receipts and shares; futures, options, and other derivatives; and fixed income securities, including those rated below investment grade.
The Fund’s manager, Delaware Management Company (Manager), has selected T. Rowe Price Associates, Inc. (T. Rowe Price) and Fred Alger Management, Inc. (Alger) to serve as the Fund’s sub-advisors. Each sub-advisor is responsible for the day-to-day investment management of the portion of the Fund’s assets that the Manager allocates to the sub-advisor. The Manager may change the allocation at any time. The relative values of each sub-advisor’s share of the Fund’s assets also may change over time. Each sub-advisor selects investments for its portion of the Fund based on the sub-advisor's own investment style and strategy.
In managing its portion of the Fund’s assets, T. Rowe Price normally invests in common stocks of a diversified group of growth companies. While it may invest in companies of any market capitalization, T. Rowe Price generally seeks investments in stocks of large-capitalization companies with one or more of the following characteristics: strong cash flow and an above-average rate of earnings growth; the ability to sustain earnings momentum during economic downturns; and occupation of a lucrative niche in the economy and ability to expand even during times of slow economic growth. T. Rowe Price believes that when a company increases its earnings faster than both inflation and the overall growth rate of the economy, the market will eventually reward it with a higher stock price. T. Rowe Price's portion of the Fund may at times invest significantly in technology stocks.
In pursuing its investment strategy, T. Rowe Price has the discretion to deviate from its normal investment criteria, as described above, and purchase securities that T. Rowe Price believes will provide an opportunity for substantial appreciation. These situations might arise when T. Rowe Price's management believes a security could increase in value for a variety of reasons, including a change in management, an extraordinary corporate event, a new product introduction or innovation, or a favorable competitive development. T. Rowe Price may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities.
In managing its portion of the Fund’s assets, Alger invests primarily in growth companies undergoing “Positive Dynamic Change.” Alger believes that investing in growth companies undergoing “Positive Dynamic Change” offers their clients the best investment opportunities over the long-term. Alger identifies these companies as those who demonstrate the following characteristics:
- High unit volume growth
Vital, creative companies which offer goods or services to a rapidly expanding marketplace. They include both established and emerging firms, exercising market dominance, offering new or improved products, or firms simply fulfilling an increased demand for an existing product line.
- Positive life cycle change
Companies experiencing a major change that is expected to produce advantageous results. These changes may be as varied as new management, products or technologies; restructuring or reorganization; regulatory change; or merger and acquisition.
In implementing this philosophy, Alger places a heavy emphasis on original, in-depth analysis. Accordingly, Alger currently employs a team of more than 30 analysts. Analysts are sector specialists with responsibility to cover fundamental trends across the capitalization spectrum of their industries. The research team is composed of experienced analysts, who have years of experience analyzing the same industries and following the same companies as well as junior analysts supporting Alger’s research, financial modeling and analytical process. The portfolio manager may sell a stock when it reaches a target price, exhibits deteriorating fundamentals, or to allocate to an opportunity with a more attractive risk/return profile.
In response to market, economic, political, or other conditions, a sub-advisor may temporarily use a different investment strategy for defensive purposes. If a sub-advisor does so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective. The Fund’s investment objective is nonfundamental and may be changed without shareholder approval. However, the Fund’s Board of Trustees must approve any changes to nonfundamental investment objectives, and the Fund's shareholders would be given at least 60 days' notice prior to any such change.
|Dividends paid (if any)||Annually|
|Capital gains paid (if any)||November or December|
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 (01/31/2017)
as of quarter-end (12/31/2016)
|YTD||1 year||3 year||5 year||10 year||Lifetime||Inception date|
|NAV (view definition)||5.08%||15.21%||8.84%||13.40%||6.79%||8.02%||08/01/2003|
|Max offer price||-0.99%||8.56%||6.72%||12.06%||6.16%||7.55%|
|Russell 1000 Growth Index||3.37%||17.23%||10.82%||13.93%||8.42%||n/a|
|1 year||3 year||5 year||10 year||Lifetime||Inception date|
|NAV (view definition)||-0.97%||0.61%||6.38%||13.70%||6.57%||7.68%||08/01/2003|
|Max offer price||-6.66%||-5.20%||4.31%||12.37%||5.93%||7.20%|
|Russell 1000 Growth Index||1.01%||7.08%||8.55%||14.50%||8.33%||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.
Net expense ratio reflects a contractual waiver from 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.
|Performance characteristics - as of 01/31/2017|
|Annualized standard deviation, 3 years (view definition)||12.50|
|Quarterly total returns @ NAV|
|Year||1st quarter||2nd quarter||3rd quarter||4th quarter||Annual return|
Delaware Management Company
T. Rowe Price Associates, Inc.
Joseph B. Fath, CPA
Start date on the Fund: January 2014
Joseph B. Fath is primarily responsible for the day-to-day management of T. Rowe Price’s share of the Fund’s assets. Fath is Chairman of T. Rowe Price’s Investment Advisory Committee, which develops and executes the Fund's investment program. He joined T. Rowe Price in 2002 as an equity research analyst and, since 2008, has assisted other T. Rowe Price portfolio managers in managing the firm's U.S. large-cap growth strategies. Fath has held his Fund responsibilities since January 2014.
Fred Alger Management, Inc.
Ankur Crawford, Ph.D.
Senior Vice President
Start date on the Fund: June 2015
Ankur Crawford shares primary responsibility for the day-to-day management of the investment program for Alger’s portion of the Fund. Dr. Crawford has been employed by Alger since 2004 and currently serves as Senior Vice President and portfolio manager. She has held her Fund responsibilities since June 2015.
Patrick Kelly, CFA
Executive Vice President
Start date on the Fund: September 2008
Patrick Kelly shares primary responsibility for the day-to-day management of the investment program for Alger’s portion of the Fund. Kelly has been employed by Alger since 1999 and currently serves as Executive Vice President and portfolio manager. He has held his Fund responsibilities since September 2008.
You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $75,000 in the Optimum 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.
|Maximum sales charge (load) imposed on purchases as a percentage of offering price||5.75%|
|Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower||none|
|Annual fund operating expenses|
|Distribution and service (12b-1) fees||0.25%|
|Total annual fund operating expenses||1.37%|
|Fee waivers and expense reimbursements||(0.02%)|
|Total annual fund operating expenses after fee waivers and expense reimbursements||1.35%|
The chart below lists the percentage of the Fund's total assets under management that each sub-adviser manages on behalf of the Fund. The percentages include securities, cash, and any other assets managed by each sub-adviser in its sleeve of the Fund. These percentages allocations should be updated some time after 30 days following a given month end.
|Date||Fred Alger Management||Marsico Capital Management||T. Rowe Price||Total|
Total may not equal 100% due to rounding.
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Investing involves risk, including the possible loss of principal.
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. A REIT fund’s tax status as a regulated investment company could be jeopardized if it holds real estate directly, as a result of defaults, or receives rental income from real estate holdings.