Delaware Global Real Estate Opportunities Fund

Key features

  • Focus on both real estate-specific and capital markets factors in our research Global portfolio can provide both income and diversification to a broader investment portfolio, as well as possible inflation protection Experienced investment team with establ
  • Focus on both real estate-specific and capital markets factors in our research Global portfolio can provide both income and diversification to a broader investment portfolio, as well as possible inflation protection Experienced investment team with establ
  • Focus on both real estate-specific and capital markets factors in our research Global portfolio can provide both income and diversification to a broader investment portfolio, as well as possible inflation protection Experienced investment team with establ
Fund information
Inception date01/10/2007
Dividends paid (if any)Quarterly
Capital gains paid (if any)November or December
Fund identifiers
NASDAQDGRPX
CUSIP245917653
Investment minimums
Initial investment$1,000
Subsequent investments$100
Systematic withdrawal balance$5,000
Account features
Payroll deductionYes
IRAsYes

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 (09/30/2019)

as of quarter-end (09/30/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)19.12%10.96%4.69%6.24%8.74%3.01%01/10/2007
Max offer price12.23%4.61%2.65%4.99%8.11%2.53%
FTSE EPRA Nareit Developed Index NR19.82%13.00%5.61%6.81%8.63%n/a
FTSE EPRA Nareit Developed Index TR20.69%14.11%6.62%7.78%9.50%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)4.01%10.96%4.69%6.24%8.74%3.01%01/10/2007
Max offer price-1.92%4.61%2.65%4.99%8.11%2.53%
FTSE EPRA Nareit Developed Index NR4.63%13.00%5.61%6.81%8.63%n/a
FTSE EPRA Nareit Developed Index TR4.87%14.11%6.62%7.78%9.50%n/a

Returns for less than one year are not annualized.

The Delaware Global Real Estate Opportunities Fund's performance information for periods prior to Sept. 28, 2012, reflects the performance of The Global Real Estate Securities Portfolio (the “Portfolio”) of Delaware Pooled® Trust, which merged into Delaware Global Real Estate Opportunities Fund (the “Fund”) as of that date. The performance information for Class A shares at offer has been adjusted to reflect the Fund’s current maximum sales charge. The Fund also has higher expenses than the Portfolio, including a Rule 12b-1 fee to which the Institutional Class of the Portfolio was not subject. Historical performance results at net asset value and offer prior to Sept. 28, 2012 have not been recalculated to reflect these expenses, but future results will be affected by them. The historical performance of the Portfolio would have been lower had it been subject to the Fund’s expense ratio.

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.

Expense ratio
Gross1.80%
Net1.40%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Feb. 28, 2019 through Feb. 28, 2020. Please see the fee table in the Fund's prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2009-21.32%31.78%21.75%3.31%30.40%
20103.43%-7.42%17.93%5.72%19.39%
20112.96%3.96%-16.78%7.63%-4.13%
201211.69%2.71%4.57%7.43%28.87%
20136.00%-3.11%1.27%0.34%4.36%
20144.62%7.06%-4.14%7.79%15.74%
20153.60%-6.98%-0.17%3.65%-0.29%
20163.78%5.02%0.70%-5.46%3.76%
20171.42%3.80%0.13%3.07%8.65%
2018-4.33%4.25%0.95%-6.85%-6.21%
201913.18%1.20%n/an/an/a
Portfolio characteristics - as of 09/30/2019FTSE EPRA Nareit Developed Index NR
Number of holdings65n/a
Market cap (median) Source: FactSet$7.9 billionn/a
Market cap (weighted average) Source: FactSet$15.4 billionn/a
Portfolio turnover (last fiscal year)187%%
Beta (relative to FTSE EPRA Nareit Developed Index NR) (view definition)1.01n/a
Annualized standard deviation, 3 years (view definition)11.03n/a
Portfolio composition as of 09/30/2019Total may not equal 100% due to rounding.
Domestic equities61.1%
International equities & depositary receipts36.5%
Cash and cash equivalents2.4%
Top 10 holdings as of 09/30/2019

Holdings are as of the date indicated and subject to change.

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

Holdings based by issuer.

Holding% of portfolio
Welltower Inc.4.93%
Brookdale Senior Living Inc.4.88%
Prologis Inc.4.70%
STORE Capital Corp.2.85%
HCP Inc.2.45%
Americold Realty Trust2.40%
Sun Communities Inc.2.38%
Invitation Homes Inc.2.36%
GOODMAN GROUP PTY LTD2.35%
Essex Property Trust Inc.2.35%
Total % Portfolio in Top 10 holdings31.65%

Top 10 countries as of 09/30/2019

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes.

Country% of portfolio
United States61.1%
Japan10.3%
Hong Kong4.6%
Australia4.2%
United Kingdom3.6%
Canada3.4%
Singapore2.6%
Germany2.0%
Spain1.8%
Sweden1.4%
Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
Return of
capital
20190.0000.0840.011
20180.0000.1860.000
20170.0000.1460.000
20160.0000.1530.000
20150.0000.0700.000
20140.0000.1510.000
20130.0000.1900.000
20120.0000.1460.000
20110.0000.2120.000
20100.0000.4890.000
20090.0000.3620.000

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.

Bob Zenouzi

Bob Zenouzi 

Senior Vice President, Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

Start date on the Fund: September 2012

Years of industry experience: 33

(View bio)


Damon Andres

Damon J. Andres, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: September 2012

Years of industry experience: 28

(View bio)


Scott Hastings

Scott P. Hastings, CFA, CPA

Vice President, Portfolio Manager

Start date on the Fund: July 2016

Years of industry experience: 16

(View bio)


You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Delaware Funds by Macquarie. 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.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price5.75%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.99%
Distribution and service (12b-1) fees0.25%
Other expenses0.56%
Total annual fund operating expenses1.80%
Fee waivers and expense reimbursements(0.40%)
Total annual fund operating expenses after fee waivers and expense reimbursements1.40%

1The Fund's investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 1.15% of the Fund's average daily net assets from Feb. 28, 2019 through Feb. 28, 2020. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

This commentary is currently not available. Please check back later.

Delaware Global Real Estate Opportunities Fund Quarterly commentary March 31, 2018

Market Review

The start of 2018 finally saw a halt in the long-running gains across global equity markets, as the MSCI World Index (net) declined 1.3%. It was that index’s first quarterly loss in seven consecutive quarters. Global bonds, however, registered a 1.4% gain, as represented by the Bloomberg Barclays Global Aggregate Index. Listed real estate, which sometimes trades more closely to bond markets, was not favored in the first quarter, and the FTSE EPRA/NAREIT Developed Index posted a 4.3% loss. The two largest global concerns affecting markets are the tightening of financial conditions by central banks and the new potential for trade wars affecting global growth and geopolitical tensions. In the first quarter, the US Federal Reserve raised rates and projected an additional two to three rate hikes for the remainder of 2018. With the Fed rate hike in March, the yield curve dramatically flattened, signaling expectations for low growth and inflation. This has raised concerns among investors that the Fed has been too aggressive in removing stimulus. In Europe, the European Central Bank (ECB) has begun to slowly withdraw its stimulus by tapering asset purchases, and has also started to discuss the potential of raising interest rates in 2019. While the new US tax law should prove to be a modest boost to gross domestic product (GDP), other developments, such as tariffs and potential trade wars, may offset this benefit. While it’s too early to determine if these events will occur or what the response will be, it is clear to us that investors are uncertain and concerned about the volatility that could result and its impact on the global economy.

The commercial real estate sector has been under pressure globally, primarily driven by fears of rising interest rates. The retail sector continues to be under pressure as ecommerce takes market share from traditional brick-and-mortar business. While we believe these are valid concerns, the selloff in publicly traded real estate securities has created one of the larger disconnects between public and private market pricing in years. Across most property types, there are significant discounts between public market valuations and the private market. The question remains: Have the public markets correctly anticipated a future decline in private market real estate values, or have the public markets oversold real estate securities on overblown fears? Privatizations and mergers have picked up in the last six months, which we believe supports the latter view that real estate securities are oversold and offer a compelling investment opportunity. Today, the largest discounts remain in the United States and the United Kingdom.

Within the Fund

The Fund’s investments in the US and Japan were the largest detractors from performance. While the US continued to lag its benchmark, the FTSE EPRA/NAREIT Developed Index, one specific investment, Brookdale Senior Living Inc., proved to be the Fund’s largest detractor with a loss of more than 30% for the quarter. Brookdale Senior Living drastically sold off after prospects for its sale or privatization collapsed, and investors seemed to give up hope that value would be realized quickly. At current levels, we believe downside is limited in Brookdale Senior Living, and the company has many catalysts to realize upside in the stock. Additionally in the US, the Fund’s investment in Urban Edge Properties hurt performance. Urban Edge Properties was down more than 15% for the quarter, in response to the announced liquidation of Toys“R”Us. Urban Edge Properties has approximately 1.5% of its total rent revenue coming from Toys“R”Us. While this is a near-term negative for Urban Edge Properties, we believe it should realize value as it can now re-lease Toys“R”Us space to what it views as more attractive tenants at higher rents. Japan was the strongest-performing country with a more than 6% return on the quarter. Despite our strong stock selection within Japan, the Fund’s underweight to Japan was a detractor to performance overall. Japanese developers and real estate investment trusts (REITs) both performed well as the Bank of Japan continued to be accommodative. Longer-term issues facing the Japanese economy continue to persist, and we remain cautious on the country’s ability to drive economic growth in the long term.

Europe, which had performed well in the fourth quarter, faltered during the first quarter. Despite overall weakness in European real estate, the Fund realized outperformance in certain areas. Within the euro region, Spain and Ireland performed well. In Spain, the Fund’s investment in Inmobiliaria Colonial Socimi S.A. performed particularly well, rising 16%. The Spanish company primarily invests in office buildings that have shown a strong recovery both in value appreciation and rental growth. Similar to Europe, Canada posted a negative return, but the Fund’s investments outperformed the benchmark, primarily due to privatizations. In January, Pure Industrial Real Estate Trust agreed to be acquired by Blackstone Group LP, and the Fund realized a 20% return on its investment during the quarter. We believe this acquisition highlights the strength and appetite for investment in industrial real estate as global supply chains benefit from ecommerce.

Outlook

Despite the strong rally in the broader equity markets, real estate has continued to lag as investors around the globe look for growth over value and yield. Real estate delivers value and yield, and does not compete with growth-oriented investments. As a result, the US real estate market has lagged the broader equity market by 62 percentage points over the past decade, with much of this underperformance coming in the last two to three years as investors searched for growth at the expense of yield. Currently, real estate securities are trading at significant discounts relative to private market valuations.

Actions taken by central banks and politicians have continued to dominate the investment community. One of the more interesting events to watch will be the movement in longer-duration US Treasurys relative to shorter-term bonds. As the Fed has raised rates more aggressively, the spread between 2- and 10-year Treasurys has fallen significantly. This implies low growth and inflation, which should make yield and real estate a more favored asset class relative to growth. Additionally, the ECB continues to slowly taper its bond purchases and in general has tried to learn from the success and failures of the Fed’s stimulus reduction. We are hopeful this indicates a path to less central bank influence.

In general, we believe the backdrop for commercial real estate remains constructive. There has been little speculative real estate development in most areas of the developed world. Credit remains widely available for commercial real estate landlords, and thus, as long as the market can continue to slowly grow and capital remains available, commercial real estate has the potential to perform well in this low-growth world. As evidence of this, despite the fall in public market real estate prices around the globe, the credit spreads for these companies has tightened.

We believe the US remains attractive given its solid fundamentals, low supply, reasonable rental growth, and attractive valuations. We have further reduced the Fund’s exposure to Australia as the stocks have become less attractive to us given slower expected growth and strong performance over the past few years. While we like the Fund’s exposure to London, we remain selective given the continued uncertainty generated by Brexit. Hong Kong has continued to perform well, driven by a strong influx of Chinese capital, particularly into the residential sector. Foreign buyers have pushed residential housing prices to unsustainable levels, and we are concerned about downward pressure over time. China has clearly stated its intention to grow at a slower pace in an effort to use less debt financing for growth. While we are in favor of the country’s trying to rely on less debt financing, we question its ability to manage the slowdown without unintended consequences both within China and in surrounding areas. We believe the consolidation of power within China is further evidence of a more challenging near-term growth profile. As the country transitions to a less debt-financed economy, it will face challenges, and it is easier to navigate those challenges when one party is in full control. We continue to believe Japan is in a difficult situation. The Bank of Japan has implemented an unprecedented amount of stimulus, yet it has not been able to drive inflation higher. After lagging the broader equity markets, we believe many areas of global commercial real estate are attractive trading at discounts to private market valuations.

Past performance is not a guarantee of future results.

The FTSE EPRA/NAREIT Developed Index tracks the performance of listed real estate companies and real estate investment trusts (REITs) worldwide, based in US dollars.

The MSCI World Index is a free float-adjusted market capitalization weighted index designed to measure equity market performance across developed markets worldwide. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.

The Bloomberg Barclays Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets.

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

[480982] 04/18

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.

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 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

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.

Investing involves risk, including the possible loss of principal.

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

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.

“Non-diversified” funds may allocate more of their net assets to investments in single securities than “diversified” funds. Resulting adverse effects may subject these funds to greater risks and volatility.

International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

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

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 10/23/2019)

Class APriceNet change
NAV$8.470.01
Max offer price$8.99n/a

Total net assets (as of 09/30/2019)

$31.8 million all share classes

Overall Morningstar RatingTM

 
Class A shares (as of 09/30/2019)
Class ANo. of funds
Overall3203
3 Yrs2203
5 Yrs3162
10 Yrs4115
Morningstar categoryMorningstar Global Real Estate Category*

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 09/30/2019)

YTD ranking126 / 232
1 year155 / 230
3 years159 / 203
5 years83 / 162
10 years36 / 115
Morningstar categoryMorningstar Global Real Estate Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 09/30/2019)

YTD ranking133 / 184
1 year148 / 183
3 years127 / 157
5 years76 / 121
10 years38 / 82
Lipper classificationLipper Global Real Estate Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Benchmark

FTSE EPRA Nareit Developed Index TR (view definition)

FTSE EPRA Nareit Developed Index NR (view definition)

Morningstar Global Real Estate Category (view definition)

Lipper Global Real Estate Funds Average (view definition)

Additional information