Delaware Healthcare Fund

Delaware Healthcare Fund

Key features

Actively managed, globally oriented fund with focused exposure to an industry with significant long-term growth potential

Emphasis on companies with franchise sustainability and attractive valuations

Portfolio manager with extensive experience in both the healthcare and asset management industries

Daily pricing as of 11/29/2023

NAV
$24.44
NAV 1-day net change
0.12
Max offer price
$24.44

Total net assets as of 10/31/2023

All share classes
$689.7 million

Overview

Fund information
Inception date 09/28/2007
Dividends paid (if any) Annually
Capital gains paid (if any) December
Fund identifiers
NASDAQ DLHIX
CUSIP 24610E408

Benchmark and peer group

Russell 3000® Healthcare Index (view definition)

Morningstar Health Category (view definition)

Lipper Health/Biotechnology Funds Average (view definition)

Performance

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 (10/31/2023)

Returns for less than one year are not annualized.

Prior to Jan. 28, 2010, the Fund had not engaged in a broad distribution effort of its shares and had been subject to limited redemption requests. The returns reflect expense limitations that were in effect during certain periods and which may have been lower than the Fund's current expenses. The returns would have been lower without expense limitations.

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

Average annual total return as of quarter-end (09/30/2023)

Returns for less than one year are not annualized.

Prior to Jan. 28, 2010, the Fund had not engaged in a broad distribution effort of its shares and had been subject to limited redemption requests. The returns reflect expense limitations that were in effect during certain periods and which may have been lower than the Fund's current expenses. The returns would have been lower without expense limitations.

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

Overall Morningstar RatingTM

Institutional Class shares - as of 10/31/2023

MorningstarMorningstarMorningstarMorningstar
Rating No. of funds
Overall 4 158
3 years 4 158
5 years 4 135
10 years 4 113
Morningstar category Morningstar Health Category

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 10/31/2023
1 year 57 / 175
3 years 64 / 158
5 years 61 / 135
10 years 45 / 113
Morningstar category Morningstar Health Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 10/31/2023
1 year 33 / 123
3 years 40 / 111
5 years 30 / 94
10 years 28 / 76
Lipper classification Lipper Health/Biotechnology Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
1.01%
Net
0.96%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from July 31, 2023 through July 30, 2024. Please see the fee table in the Fund's prospectus for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2022
-1.06%
2021
5.56%
2020
11.44%
2019
31.83%
2018
-0.58%
2017
32.32%
2016
-4.09%
2015
11.66%
2014
17.32%
2013
50.98%

Portfolio

Portfolio characteristics as of 10/31/2023

Number of holdings
98
Market cap (median) Source: FactSet
$2.1 billion
Market cap (weighted average) Source: FactSet
$157.9 billion
Portfolio turnover (last fiscal year)
3%
Beta (relative to Russell 3000 Healthcare Index) (view definition)
0.84
Annualized standard deviation, 3 years (view definition)
13.51

Portfolio composition as of 10/31/2023
Total may not equal 100% due to rounding.

Domestic equities
86.6%
International equities & depositary receipts
14.2%
Cash, cash equivalents and other assets
-0.8%

Values in excess of 100% and negative values may appear as the result of certain assets and liabilities. See the Fund's prospectus for securities in which the Fund would typically invest.

Top 10 holdings as of 10/31/2023

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

List may exclude cash and cash equivalents. Please see the Fund's complete list of holdings for more information.

Holdings based by issuer.

Holding
% of portfolio
Holding
% of portfolio
ELI LILLY AND COMPANY
9.64
AMGEN INC
7.41
REGENERON PHARMACEUTICALS INC.
7.35
UNITEDHEALTH GROUP INC
5.90
ABBVIE INC
4.64
MERCK & CO INC
4.39
ELEVANCE HEALTH INC
4.11
CHUGAI PHARMACEUTICAL CO LTD
3.01
ROCHE HOLDING AG
2.99
BOSTON SCIENTIFIC CORPORATION
2.82

Total % Portfolio in Top 10 holdings - 52.26%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 10/31/2023

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

Sector
Fund
Sector
Fund
Blue chip medical products
49.4%
Biotechnology
32.2%
Healthcare services
11.6%
Small/mid-cap medical products
6.3%
Other
1.3%

Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2023
0.000
0.000
2022
2.274
0.063
2021
1.476
0.044
2020
1.496
0.125
2019
2.015
0.026
2018
0.263
0.200
2017
0.000
0.727
2016
1.216
0.223
2015
1.343
0.221
2014
2.072
0.062
2013
0.420
0.000

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.

Management

Liu-Er Chen

Liu-Er Chen, CFA

  • Managing Director, Chief Investment Officer – Emerging Markets and Healthcare Equity
  • Start date on the Fund: September 2007
  • Years of industry experience: 28
  • Read bio

Fees

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price none
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none
Annual fund operating expenses
Management fees 0.83%
Distribution and service (12b-1) fees none
Other expenses 0.18%
Total annual fund operating expenses 1.01%
Fee waivers and expense reimbursements (0.05%)
Total annual fund operating expenses after fee waivers and expense reimbursements 0.96%

Please see the prospectus and SAI for additional information.

1Net expense ratio reflects a contractual waiver of certain fees/and/or expense reimbursements from July 31, 2023 through July 30, 2024. Please see the fee table in the Fund's prospectus for more information.

Institutional Class shares are available only to certain investors. See the prospectus for more information.

Resources

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 visiting delawarefunds.com/literature or calling 877 693-3546. Investors should read the prospectus and the summary prospectus carefully before investing.

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 visiting delawarefunds.com/literature 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 affiliate, Macquarie Investment Management Global Limited (MIMGL) 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.

Healthcare companies are subject to extensive government regulation and their profitability can be affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure, and malpractice or other litigation.

International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.

“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.

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions 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. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.

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

Not FDIC Insured • No Bank Guarantee • May Lose Value

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