Delaware VIP® Special Situations Series**(formerly, First Investors Life Series 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 05/22/2020

NAV
NAV 1-day net change
Max offer price
$19.32

Total net assets as of 04/30/2020

All share classes
$167.9 million

Overview

Series information
Inception date11/09/1987
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifiers
CUSIP246493449

Benchmark

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

MSCI USA Small Cap Value Index (gross) (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 (04/30/2020)

Returns for less than one year are not annualized.

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 (03/31/2020)

Returns for less than one year are not annualized.

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 series and investment team. Please see the Updated Significant Series Event and prospectus for more information.

Expense ratio

Gross
0.84%
Net
0.80%

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

The performance and expense ratio information shown represent the performance and fees as they relate to actual shares of the Series. These examples do not include any fees or sales charges imposed by the variable insurance contract for which the Series is an investment option. If they were included, your costs would be higher and performance would be lower. Investors should consult the contract prospectus or disclosure documents for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2019
20.36%
2018
-16.60%
2017
18.26%
2016
16.10%
2015
-0.52%
2014
6.30%
2013
30.88%
2012
10.01%
2011
2.24%
2010
26.57%

Portfolio

Portfolio characteristics as of 04/30/2020

Number of holdings
101
Market cap (median) Source: FactSet
$2.4 billion
Market cap (weighted average) Source: FactSet
$3.2 billion
Portfolio turnover (last fiscal year)
128%
Beta (relative to Russell 2000 Value Index) (view definition)
0.99
SEC 30-day yield with waiver (view definition)
2.05%
SEC 30-day yield without waiver (view definition)
1.96%
Annualized standard deviation, 3 years (view definition)
23.79

Portfolio composition as of 04/30/2020
Total may not equal 100% due to rounding.

Domestic equities
94.3%
Cash and cash equivalents
4.0%
International equities & depositary receipts
1.7%

Top 10 holdings as of 04/30/2020

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 Series' complete list of holdings for more information.

Holdings based by issuer.

Holding
% of portfolio
Holding
% of portfolio
East West Bancorp Inc.
2.79
ITT Inc.
2.35
Teradyne Inc.
2.06
MasTec Inc.
1.99
Berry Global Group Inc.
1.92
STIFEL FINL CORP
1.73
WEBSTER FINL CORP
1.62
SOUTHWEST GAS HOLDINGS INC
1.60
UMPQUA HLDGS CORP
1.58
HANOVER INSURANCE GROUP INC
1.56

Total % Portfolio in Top 10 holdings - 19.20%

List of monthly holdingsList of quarterly holdings

Sector allocation as of 04/30/2020

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

Sector
% of portfolio
Sector
% of portfolio
Financial services
28.2%
Technology
13.8%
REITs
9.2%
Capital spending
8.4%
Consumer services
7.1%
Utilities
6.0%
Basic industry
4.9%
Consumer staples
4.1%
Transportation
3.8%
Consumer cyclical
3.8%
Healthcare
3.2%
Energy
2.8%
Business services
0.9%

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: 38
  • Read bio
Kelley McKee

Kelley McKee Carabasi, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 17
  • 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: 23
  • Read bio
Michael Foley

Michael Foley, CFA

  • Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 10
  • Read bio

Fees

Annual series operating expenses
Management fees0.75%
Distribution and service (12b-1) feesnone
Other expenses0.09%
Total annual Series operating expenses0.84%
Fee waivers and expense reimbursements1(0.04%)
Total annual series operating expenses after fee waivers and expense reimbursements0.80%

1The Series’ 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 series operating expenses from exceeding 0.80% of the Series’ 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 Series.

Resources

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

**Updated Significant Series Event. On April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts and the First Investors Fund shareholders approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund in the Delaware Funds by Macquarie family of funds. The Transaction closed on Oct. 4, 2019.

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

The Series' investment manager, Delaware Management Company (Manager), may permit its affiliates, Macquarie Investment Management Global Limited (MIMGL) and Macquarie Funds Management Hong Kong Limited (MFMHKL), to execute Series security trades on behalf of the Manager. The Manager may also seek quantitative support from MIMGL.

Carefully consider the Series' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Series' prospectus and its summary prospectus, which may be obtained by visiting delawarefunds.com/vip-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.

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.

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.

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 Series’ 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 Series from executing advantageous investment decisions in a timely manner and could negatively impact the Series’ ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Series.

Delaware VIP® Series refers to Delaware VIP Funds. Delaware VIP Funds are not available for direct investment except for issuers of variable insurance product contracts. They are available only through the purchase of certain variable insurance products.

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

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