Investing in disruptions

Enhancing client portfolios through times of accelerated digitalization

Finding opportunities amid volatility can be challenging. Identifying disruptions can help cut through the noise. For example, the digitalization of most consumer and business activities is now accelerating. We expect these transitions will continue regardless of macroeconomic headwinds.

Delaware Smid Cap Growth Fund

Thematically oriented with a concentrated approach to portfolio management

Focused on competitively advantaged companies well positioned to participate in major demand trends

Has consistently utilized the same investment philosophy since 1997

Smid-cap growth 2020: Investing in disruptions

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In the news

Recently, Alex Ely shared his insights with two major media outlets around the team’s investment philosophy and process, and how the Fund is positioned to take advantage of current disruptions in the market.

'Seven stock picks from a five-star money manager’s ‘disruptive’ portfolio'May 4, 2020

Read more

'Top Fund Manager Seeks Stocks That Benefit Amid Coronavirus Chaos'April 6, 2020

Read more

Best mutual funds 2020

#5

Top 5
best-of-the-best funds1

Morningstar Morningstar Morningstar Morningstar Morningstar

Overall Morningstar RatingTM
Institutional Class shares – as of 4/30/2020

Top decile

Rank for 1-, 3-, 5-
and 10-year performance.

The Morningstar rating is based on risk-adjusted returns measure that accounts for variation in a managed product’s monthly excess performance. Past performance does not guarantee future results. Institutional Class shares rated 5, 5, and 5 stars and Class A shares (load waived) rated 5, 5, and 5 stars for the 3-, 5-, and 10-year periods ended 4/30/2020 among 565, 503, and 387 Mid-Cap Growth funds, respectively. There are 565 funds in the overall rating.

1Ranked by Investor’s Business Daily and based on 10-year performance. To determine the winners, IBD compared the 1-, 3-, 5-, and 10-year performance of 3,374 funds that have been around for at least 10 years as of Dec. 31, 2019.

Delaware Smid Cap Growth Fund (DFDIX)

Historically outperforming the benchmark and its peers

Delaware Smid Cap Growth Fund versus its benchmark and Morningstar category
Average annualized total returns (%) as of April 30, 2020

Delaware Smid Cap Growth Fund

Source: Morningstar. Data as of April 30, 2020. Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal. The Morningstar ranking is based on historical total returns.

2As of April 30, 2020. Delaware Smid Cap Growth Fund was ranked against the following numbers of Mid-Cap Growth funds over the following time periods: 619 funds for YTD, 605 funds in the last year, 565 funds in the last three years, 503 funds in the last five years, and 387 funds in the last 10 years.

*Returns for less than one year are not annualized.

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. Performance data for all share classes current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.

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.

To learn more about Delaware Smid Cap Growth Fund (DFDIX)

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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 summary prospectus, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and summary prospectus carefully before investing. Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Investing involves risk, including the possible loss of principal.

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

The risk that all or a majority of the securities in a certain market — like the stock market or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Market risk is the risk that all or a majority of the securities in a certain market – like the stock market or bond market – will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Risk is increased in a concentrated portfolio since it holds a limited number of securities with each investment having a greater effect on the overall performance.

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

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Russell 2500 Growth Index measures the performance of the small- to mid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.

The Morningstar Mid-Cap Growth Category compares funds that target US firms that are projected to grow faster than other mid-cap stocks, therefore commanding relatively higher prices. The US mid-cap range for market capitalization typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the US equity market.

Institutional Class shares rated 5, 5, and 5 stars and Class A shares (load waived) rated 5, 5, and 5 stars for the 3-, 5-, and 10-year periods ended 4/30/2020 among 565, 503, and 387 Mid-Cap Growth funds, respectively. There are 565 funds in the overall rating.

The Morningstar Rating™ for funds, or "star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Morningstar Rating is for the Class(es) indicated; other classes may have different performance characteristics.

Morningstar Rank is the total return percentile rank within each Morningstar Category. The highest (or most favorable) percentile rank is zero and the lowest (or least favorable) percentile rank is 100. Historical percentile ranks are based on a snapshot of a fund at the time of calculation. Percentile Rank is a standardized way of ranking items within a peer group, in this case, funds within the same Morningstar Category. The observation with the largest numerical value is ranked one the observation with the smallest numerical value is ranked 100. The remaining observations are placed equal distance from one another on the rating scale. Note that lower percentile ranks are generally more favorable for returns (high returns), while higher percentile ranks are generally more favorable for risk measures (low risk).

© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Institutional Class shares, Class R shares, and Class R6 shares are available only to certain investors. See the prospectus for more information.

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

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

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

The Fund’s investment manager, Delaware Management Company (Manager), may permit its affiliates, Macquarie Investment Management Global Limited (MIMGL) and Macquarie Funds Management Hong Kong Limited, to execute Fund security trades on behalf of the Manager. The Manager may also seek quantitative support from MIMGL.

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

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

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