Investing in disruptions

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.

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

Medical breakthroughs

Personalized medicine and virtual health care are dramatically improving medical treatments.

Better living

People are living better with higher-quality foods, active lifestyles, and mobile services.

Network changing the world

The network is changing our world by digitalizing almost all consumer and business activity.

Insist on Growth

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.

Read more about the US Growth Equity team’s approach to investing in disruptions and what may lie ahead.

Read more

In the news

Alex Ely recently shared his insights with various major media outlets about the team's investment philosophy and process, and current positioning that seeks to benefit from current disruptions in the market.

CNBC Worldwide Exchange

Alex Ely shares insights on his picks in the small- / mid-cap sector.
October 14, 2020

CNBC Worldwide Exchange

'Ely: The bull market should roll on in the second half, helped by unprecedented monetary and fiscal support'
July 1, 2020

‘Opinion: Five investing rules from a money manager who crushes the stock market – and his take on the best companies to own now’
December 11, 2020

Read more

'We spoke with Wall Street's 9 best-performing fund managers of 2020 to learn how they crushed the chaotic market - and compile the biggest bets they're making for 2021'
December 9, 2020

Read more

'Q&A: Macquarie Investment Management on Small-Cap and Midcap Investing'
December 9, 2020

Read more

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

Read more

Thematically oriented, concentrated approach to portfolio management

Delaware Small Cap Growth Fund 37 holdings*94% active share

Learn more
Small Cap Growth category
$5.4 billion weighted avg. market cap
(as of Jan. 31, 2021)

Delaware Smid Cap Growth Fund 42 holdings*93% active share

Learn more
Mid Cap Growth category
$14.2 billion weighted average market cap
(as of Jan. 31, 2021)

Delaware Select Growth Fund 40 holdings*83% active share

Learn more
Large Cap Growth category
$179.1 billion weighted average market cap
(as of Jan. 31, 2021)

*Holdings are as of Jan. 31, 2021 and are subject to change.

Five ideas
for 2021

Idea #1: Smid-cap growth in a sweet spot

With a host of vaccines being approved, the pandemic will likely come to an end by summer. As this reality nears, economic visibility should continue to improve. Equities and risk assets benefit from greater visibility.

Learn more

Average annualized total return (%) as of 12/31/20 versus benchmark and peers

Small Cap Growth Graph
Morningstar percentile rank2 1 2 -
Excess return versus its benchmark +62.12% +21.71% +16.06%

1. Benchmark lifetime returns are as of the Fund’s Class A share inception date of 6/30/2016.
Source: Morningstar. Data as of Dec. 31, 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.

2. As of Dec. 31, 2020. Delaware Small Cap Growth Fund was ranked against the following numbers of Small Growth funds over the following time periods: 616 funds for last year, 576 funds in the last three years.

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.

View the Fund standardized performance

Average annualized total return (%) as of 12/31/20 versus benchmark and peers

Smid Cap Growth Graph
Morningstar percentile rank2 4 4 3 2
Excess return versus its benchmark +53.91% +18.43% +9.34% +5.46%

1. Effective June 30, 2016 the US Growth Equity team began managing the portfolio.
Source: Morningstar. Data as of Dec. 31, 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.

2. As of Dec. 31, 2020. Delaware Smid Cap Growth Fund was ranked against the following numbers of Mid-Cap Growth funds over the following time periods: 604 funds in the last year, 564 funds in the last three years, 504 funds in the last five years, and 383 funds in the last 10 years.

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.

View the Fund standardized performance

Average annualized total return (%) as of 12/31/20 versus benchmark and peers

Select Growth Graph
Morningstar percentile rank3 17 36 62 63
Excess return versus its benchmark +8.16% -0.31% -3.61% -2.48%

1. Effective July 31, 2020 the US Growth Equity team began managing the portfolio.
Source: Morningstar. Data as of Dec. 31, 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.

2. As of Dec. 31, 2020. Delaware Select Growth Fund was ranked against the following numbers of Large Growth funds over the following time periods: 1289 funds in the last year, 1197 funds in the last three years, 1070 funds in the last five years, and 789 funds in the last 10 years.

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.

View the Fund standardized performance


*On May 20, 2020, the Board of Trustees approved the replacement of the Fund’s current sub-advisor with the US Small-Mid Cap Growth Equity team of the Fund’s investment manager, Delaware Management Company. In connection with this determination, the Board approved certain changes to the Fund’s investment strategies. These portfolio management and strategy changes were effective July 31, 2020. The investment strategy changes may result in higher portfolio turnover in the near term, as the new portfolio management team purchases and sells securities to accommodate the investment strategy changes. A higher portfolio turnover is likely to cause the Fund to realize capital gains and incur transaction costs. You should consult your financial advisor about the changes that will result from the investment strategy changes.

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 2000 Growth Index measures the performance of the small-cap growth segment of the US equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

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 Russell 3000 Growth Index measures the performance of the broad growth segment of the US equity universe. It includes those Russell 3000 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.

The Morningstar Small Growth Category compares funds that focus on faster-growing companies whose shares are at the lower end of the market-capitalization range. These funds tend to favor companies in up-and-coming industries or young firms in their early growth stages. Small-cap stocks are those in the bottom 10% of the capitalization of the US equity market, and growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields).

The Morningstar Large Growth Category compares funds that invest primarily in big US companies that are projected to grow faster than other large-cap stocks. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields).

© 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.

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 6/30/2020 among 558, 500, and 381 Mid-Cap Growth funds, respectively. There are 558 funds in the overall rating.

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).

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.

[1505991] 2/2021

[1561934]

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

You can check the background of your investment professional on FINRA's BrokerCheck.