Delaware Sustainable Equity Income Fund

Delaware Sustainable Equity Income Fund

Key features

Equity fund investing in securities with products, services or practices that align with the UN SDGs with similar risk profiles to the Russell 1000 Value Index

The Fund's portfolio seeks a dividend yield higher than its benchmark, the Russell 1000® Value Index

Striving to satisfy dual societal and investment objectives, the Fund’s investment team combines sustainability experience with quantitative experience

Daily pricing as of 02/23/2024

NAV
NAV 1-day net change
Max offer price
$5.45

Total net assets as of 01/31/2024

All share classes
$46.2 million

Overview

Fund information
Inception date 04/20/2017
Dividends paid (if any) Quarterly
Capital gains paid (if any) December
Fund identifiers
NASDAQ IDAIX
CUSIP 46600A617

Benchmark

Russell 1000® Value Index (view definition) 

Morningstar Large Value Category (view definition)

Lipper Multi-Cap Value 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 (01/31/2024)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the Fund's inception date.

The returns shown for periods prior to August 1, 2022, reflect that of the Fund prior to its repositioning, which included changes to the Fund’s investment objective, strategy, benchmark, and/or investment team.

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 (12/31/2023)

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the Fund's inception date.

The returns shown for periods prior to August 1, 2022, reflect that of the Fund prior to its repositioning, which included changes to the Fund’s investment objective, strategy, benchmark, and/or investment team.

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 01/31/2024

MorningstarMorningstarMorningstarMorningstar
Rating No. of funds
Overall 4 1129
3 years 3 1129
5 years 4 1074
Morningstar category US Insurance Large Value

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 01/31/2024
1 year 862 / 1215
3 years 679 / 1129
5 years 255 / 1074
10 years n/a
Morningstar category US Insurance Large Value

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 01/31/2024
1 year 469 / 679
3 years 376 / 634
5 years 130 / 597
10 years n/a
Lipper classification Lipper Multi-Cap Value Funds

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
0.70%
Net
0.49%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from January 29, 2024 through January 28, 2025. Please see the fee table in the Fund's prospectus for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2023
9.71%
2022
-5.95%
2021
25.22%
2020
8.15%
2019
27.29%
2018
-3.30%

Portfolio

Portfolio characteristics as of 01/31/2024

Number of holdings
165
Market cap (median) Source: FactSet
$46.6 billion
Market cap (weighted average) Source: FactSet
$125.3 billion
Portfolio turnover (last fiscal year)
160%
Beta (relative to Russell 1000 Value Index) (view definition)
0.98
Annualized standard deviation, 3 years (view definition)
16.89

Portfolio composition as of 01/31/2024
Total may not equal 100% due to rounding.

Domestic equities
95.9%
International equities & depositary receipts
3.6%
Cash, cash equivalents and other assets
0.5%

Top 10 holdings as of 01/31/2024

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
JPMORGAN CHASE & CO
2.61
CHEVRON CORP
2.27
JOHNSON & JOHNSON
2.15
PROCTER & GAMBLE CO
1.69
S&P GLOBAL INC
1.53
MERCK & CO INC
1.49
CONOCOPHILLIPS
1.45
BLACKROCK INC
1.27
CISCO SYSTEMS INC
1.24
COMCAST CORPORATION
1.22

Total % Portfolio in Top 10 holdings - 16.92%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 01/31/2024

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
Financials
21.9%
Healthcare
15.1%
Industrials
13.3%
Information technology
10.2%
Consumer staples
7.8%
Energy
7.4%
Communication services
5.1%
Real estate
4.9%
Consumer discretionary
4.7%
Utilities
4.6%
Materials
4.5%

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

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2024
0.000
0.000
2023
0.560
0.132
2022
8.808
0.347
2021
0.906
0.300
2020
0.584
0.288
2019
0.153
0.251
2018
0.123
0.238
2017
0.001
0.079
2016
0.000
0.000
2015
0.000
0.000
2014
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

Barry Gladstein

Barry Gladstein, CFA, CPA

  • Managing Director, Head of Sustainable Investing – Equities & Multi-Asset/Credit
  • Start date on the Fund: November 2021
  • Years of industry experience: 28
  • Read bio
Chris Gowlland

Chris Gowlland, CFA

  • Senior Vice President, Head of Equity Quantitative Research
  • Start date on the Fund: November 2021
  • Years of industry experience: 27
  • 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 0.35%
Distribution and service (12b-1) fees none
Other expenses 0.35%
Total annual fund operating expenses 0.70%
Fee waivers and expense reimbursements1 (0.21%)
Total annual fund operating expenses after fee waivers and expense reimbursements 0.49%

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 29, 2024 through January 28, 2025. 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.

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 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 0.50% 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

Significant Fund Event

On January 16, 2024, the Board of Trustees unanimously voted to approve a proposal to liquidate and dissolve the Fund. The liquidation and dissolution are expected to take effect on or about April 19, 2024 (“Liquidation Date”). The Fund closed to new investors on January 30, 2024. However, the Fund will continue to accept purchases from existing shareholders (including reinvested dividends, capital gains, and automatic investment plans) until five (5) business days before the Liquidation Date.

Investing involves risk, including the possible loss of principal.

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.

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

Investing with a focus on companies that exhibit a commitment to sustainable practices may result in the Fund investing in certain types of companies, industries or sectors that the market may not favor.

Equity securities are subject to price fluctuation and possible loss of principal. There is no guarantee that dividend-paying stocks will continue to pay dividends.

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.

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..

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.

Not FDIC Insured • No Bank Guarantee • May Lose Value

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.

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