Delaware Hedged U.S. Equity Opportunities Fund

Delaware Hedged U.S. Equity Opportunities Fund

Key features

A US equity portfolio balanced across styles and market capitalizations that seeks to provide total return

Utilizes a hedging strategy overlay to reduce market risk

Offers potential diversification benefits when added to an overall portfolio

Daily pricing as of 01/27/2023

NAV
NAV 1-day net change
Max offer price
$8.11

Total net assets as of 12/31/2022

All share classes
$57.5 million

Overview

Fund information
Inception date 08/01/2016
Dividends paid (if any) Annually
Capital gains paid (if any) November or December
Fund identifiers
NASDAQ FHEKX
CUSIP 24611D839

Benchmark and peer group

Russell 3000® Index (primary) (view definition)

ICE BofA US 3-Month Treasury Bill Index (view definition)

70% Russell 3000® Index / 30% ICE BofA US 3-Month Treasury Bill Index (view definition)

Morningstar Long-Short Equity Category (view definition)

Lipper Multi-Cap Core 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 (12/31/2022)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to the Fund's inception date.

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 (12/31/2022)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to the Fund's inception date.

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 12/31/2022

MorningstarMorningstarMorningstarMorningstar
Rating No. of funds
Overall 4 178
3 years 3 178
5 years 4 161
Morningstar category Long-Short Equity

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 12/31/2022
1 year 147 / 197
3 years 92 / 177
5 years 26 / 158
10 years n/a
Morningstar category Long-Short Equity

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Expense ratio

Gross
1.55%
Net
1.30%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from January 28, 2022 through January 28, 2023. 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
-13.41%
2021
9.85%
2020
16.07%
2019
22.20%
2018
-2.94%
2017
12.65%

Portfolio

Portfolio characteristics as of 12/31/2022

Number of holdings
291
Market cap (median) Source: FactSet
$29.5 billion
Market cap (weighted average) Source: FactSet
$215.5 billion
Portfolio turnover (last fiscal year)
70%
Beta (relative to Russell 3000 Index) (view definition)
0.65
Annualized standard deviation, 3 years (view definition)
14.36

Portfolio composition as of 12/31/2022
Total may not equal 100% due to rounding.

Domestic equities
91.0%
International equities & depositary receipts
5.9%
Cash, cash equivalents and other assets
3.1%

Top 10 holdings as of 12/31/2022

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
Microsoft Corp.
2.77
Alphabet Inc.
2.03
Apple Inc.
1.86
Chubb Ltd.
1.53
Charles Schwab Corp.
1.35
AMAZON.COM Inc.
1.29
TJX Companies Inc.
1.22
Danaher Corporation
1.17
Nike Inc.
1.14
Meta Platforms Inc.
1.12

Total % Portfolio in Top 10 holdings - 15.48%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 12/31/2022

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
Information technology
17.9%
Financials
14.5%
Healthcare
14.4%
Industrials
12.9%
Consumer discretionary
11.6%
Consumer staples
5.7%
Communication services
5.6%
Materials
5.1%
Energy
3.3%
Real estate
2.9%
Utilities
2.2%
Options
0.6%

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

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2022
0.718
0.000
2021
1.074
0.000
2020
2.907
0.000
2019
1.914
0.045
2018
0.208
0.000
2017
0.000
0.000
2016
0.000
0.002
2015
0.000
0.000
2014
0.000
0.000
2013
0.000
0.000
2012
0.000
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

Investment manager

Delaware Management Company (DMC)

Sub-advisor

Wellington Management Company LLP

Gregg R Thomas

Gregg R. Thomas, CFA

  • Senior Managing Director, Partner, and Director, Investment Strategy
  • Start date on the Fund: October 2019
  • Years of industry experience: 30
  • Read bio
Roberto J Isch

Roberto J. Isch, CFA

  • Managing Director, Research Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 16
  • 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 1.15%
Distribution and service (12b-1) fees none
Other expenses 0.40%
Total annual fund operating expenses 1.55%
Fee waivers and expense reimbursements1 (0.25%)
Total annual fund operating expenses after fee waivers and expense reimbursements 1.30%

Please see the prospectus and SAI for additional information.

1Net expense ratio reflects a contractual waiver of certain fees/and/or expense reimbursements from January 28, 2022 through January 28, 2023. 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.

1 The 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 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 1.30% of the Fund’s average daily net assets from January 28, 2022 through January 28, 2023. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

Wellington Management Company LLP (Wellington Management), a US registered investment advisor, is the sub-advisor to the Fund. As sub-advisor, Wellington Management Company LLP (Wellington Management) is responsible for day-to-day management of the Fund’s assets. Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), has ultimate responsibility for all investment advisory services.

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 it's 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 it's 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.

Investing involves risk, including the possible loss of principal.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

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

Hedging seeks to limit downside risks, but it also will limit the Fund’s return potential. This will especially be true during periods of rapid or large market gains. Hedging activities involve fees and expenses, which can further reduce the Fund’s returns. If the Fund uses a hedging instrument at the wrong time or judges market conditions incorrectly, or the hedged instrument does not correlate to the risk sought to be hedged, the hedge might be unsuccessful, reduce the Fund’s return, and/or create a loss.

The risks of investing in an exchange-traded fund (ETF) typically reflect the risks of the types of instruments in which the ETFs invest. Because ETFs are investment companies, a fund will bear its proportionate share of the fees and expenses of an investment in an ETF. As a result, a fund’s expenses may be higher and performance may be lower.

The Fund may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.

Futures and options involve risks, such as possible default by a counterparty, potential losses if markets do not move as expected, and the potential for greater losses than if these techniques had not been used. Investments in derivatives can increase the volatility of the Fund’s share price and expose it to significant additional costs. Derivatives may be difficult to sell, unwind or value.

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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Not FDIC Insured • No Bank Guarantee • May Lose Value

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