Delaware Special Situations Fund

Key features

Stocks are selected by a highly experienced, value-focused investment team of five sector specialists, averaging over 20 years of industry experience

Focus on a company’s ability to effectively deploy and generate sustainable free-cash flow

A disciplined investment process with a focus on risk mitigation that has been consistently applied for over 20 years

Daily pricing as of 10/27/2020

NAV
NAV 1-day net change
Max offer price
$18.77

Total net assets as of 09/30/2020

All share classes
$279.8 million

Overview

Fund information
Inception date04/01/2013
Dividends paid (if any)Annually
Capital gains paid (if any)November or December
Fund identifiers
NASDAQFISTX
CUSIP24611D664

Benchmark and peer group

Russell 2000® Value Index (primary) (view definition)

MSCI USA Small Cap Value Index (gross) (view definition)

Russell 2000® Index (view definition)

Morningstar Small Value Category (view definition)

Lipper Small-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 (09/30/2020)

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.

Performance shown prior to Oct. 4, 2019, are as of the predecessor fund and investment team. Please see the Updated Significant Fund Event and prospectus for more information.

Average annual total return as of quarter-end (09/30/2020)

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.

Performance shown prior to Oct. 4, 2019, are as of the predecessor fund and investment team. Please see the Updated Significant Fund Event and prospectus for more information.

Overall Morningstar RatingTM

Institutional Class shares - as of 09/30/2020

RatingNo. of funds
Overall2387
3 years2387
5 years2356
10 years3254
Morningstar categoryMorningstar Small Value Category
 

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 09/30/2020
YTD ranking 356 / 420
1 year 355 / 416
3 years 336 / 387
5 years 292 / 356
10 years n/a
Morningstar categoryMorningstar Small Value Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 09/30/2020
YTD ranking 878 / 910
1 year 866 / 903
3 years 827 / 848
5 years 691 / 719
10 years n/a
Lipper classificationLipper Small-Cap Core Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
1.03%
Net
1.02%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from from Oct. 4, 2019 through Oct. 31, 2021. Please see the fee table in the Fund's prospectus for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2019
20.31%
2018
-16.80%
2017
18.02%
2016
15.96%
2015
-0.75%
2014
6.05%

Portfolio

Portfolio characteristics as of 09/30/2020

Number of holdings
108
Market cap (median) Source: FactSet
$2.5 billion
Market cap (weighted average) Source: FactSet
$3.4 billion
Portfolio turnover (last fiscal year)
51%
Beta (relative to Russell 2000 Value Index) (view definition)
1.01
SEC 30-day yield with waiver (view definition)
1.54%
SEC 30-day yield without waiver (view definition)
1.53%
Annualized standard deviation, 3 years (view definition)
24.14

Portfolio composition as of 09/30/2020
Total may not equal 100% due to rounding.

Domestic equities
97.7%
International equities & depositary receipts
1.6%
Cash and cash equivalents
0.7%

Top 10 holdings as of 09/30/2020

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

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.

Holdings based by issuer.

Holding
% of portfolio
Holding
% of portfolio
East West Bancorp Inc.
2.50
Berry Global Group Inc.
2.18
ITT Inc.
2.01
MasTec Inc.
2.00
STIFEL FINL CORP
1.94
LOUISIANA PACIFIC CORP
1.83
Meritage Homes Corp.
1.68
Teradyne Inc.
1.66
ALTRA INDUSTRIAL MOTION CORP
1.50
WEBSTER FINL CORP
1.49

Total % Portfolio in Top 10 holdings - 18.79%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 09/30/2020

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
Financial services
24.6%
Technology
12.2%
Consumer services
10.6%
REITs
9.3%
Capital spending
9.1%
Basic industry
7.6%
Consumer cyclical
4.9%
Utilities
4.7%
Consumer staples
4.1%
Healthcare
4.1%
Transportation
3.6%
Energy
3.0%
Business services
1.7%

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

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2020
0.000
0.000
2019
3.437
0.000
2018
3.829
0.102
2017
0.869
0.038
2016
0.237
0.178
2015
1.441
0.036
2014
1.425
0.077
2013
4.604
0.000
2012
0.000
0.000
2011
0.000
0.000
2010
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

Christopher Beck

Christopher S. Beck, CFA

  • Executive Director, Chief Investment Officer — US Small-Mid Cap Value Equity
  • Start date on the Fund: October 2019
  • Years of industry experience: 39
  • Read bio
Kelley McKee

Kelley McKee Carabasi, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 18
  • Read bio
Steven Catricks

Steven G. Catricks, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 21
  • Read bio
Kent P Madden

Kent P. Madden, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 24
  • Read bio
Michael Foley

Michael Foley, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 11
  • Read bio

Fees

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.75%
Distribution and service (12b-1) feesnone
Other expenses0.28%
Total annual fund operating expenses1.03%
Fee waivers and expense reimbursements1(0.01%)
Total annual fund operating expenses after fee waivers and expense reimbursements1.02%

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 and dividend 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 1.02% of the Fund’s average daily net assets from Oct. 4, 2019 through Oct. 31, 2021. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

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

*The Fund changed its broad-based securities index to the Russell 2000 Value Index as of Oct. 4, 2019. The Fund had previously changed its broad-based securities index to the MSCI USA Small Cap Value Index as of Jan. 31, 2019. In each case Fund elected to use the new index because it more closely reflected the Fund’s investment strategies. The Fund’s secondary benchmark, the Russell 2000 Index was removed as of Oct. 4, 2019.

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 under the Resources section, 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 are located under the Resources section, 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.

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

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.

An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.

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.

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.

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

Not FDIC Insured • No Bank Guarantee • May Lose Value

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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.