Objective
Optimum Small-Mid Cap Growth Fund seeks long-term growth of capital.
Strategy
Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of small- and mid-market capitalization companies (80% policy). This policy may be changed only upon 60 days’ prior notice to shareholders. For purposes of this Fund, small-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell 2000® Growth Index, and mid-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell Midcap® Growth Index. As of June 30, 2017, the Russell 2000 Growth Index had a market capitalization range between $14.2 million and $5.8 billion, and the Russell Midcap Growth Index had a market capitalization range between $1.8 billion and $47.2 billion. The market capitalization ranges for these Indices will change on a periodic basis. A company’s market capitalization is based on its current market capitalization or its market capitalization at the time of the Fund’s investment. Companies whose market capitalization no longer meets the respective definition above after purchase continue to be considered either small- or mid-market-capitalization companies, as applicable, for purposes of this 80% policy. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of the Russell Investment Group.
The Fund intends to invest primarily in common stocks of US companies, but it may also invest in other securities that a sub-advisor believes provide opportunities for capital growth, such as preferred stocks, warrants, and securities convertible into common stocks. In keeping with the Fund’s investment objective, the Fund may also invest in foreign securities, including American depositary receipts (ADRs) and other depositary receipts and shares; futures, options, and other derivatives; and fixed income securities, including those rated below investment grade.
The Fund’s manager, Delaware Management Company (Manager), has selected Columbus Circle Investors (CCI) and Peregrine Capital Management, Inc. (Peregrine) to serve as the Fund’s sub-advisors. Each sub-advisor is responsible for the day-to-day investment management of the portion of the Fund’s assets that the Manager allocates to the sub-advisor. The Manager may change the allocation at any time. The relative values of each sub-advisor’s share of the Fund’s assets also may change over time. Each sub-advisor selects investments for its portion of the Fund based on the sub-advisor’s own investment style and strategy.
In managing its portion of the Fund’s assets, CCI’s primary objective is to outperform the Russell 2500TM Growth Index over a full market cycle. No assurances can be given that this objective will be achieved. CCI targets small- to mid-sized businesses providing new technologies, products or services. CCI’s Positive Momentum & Positive Surprise investment philosophy is based on the premise that companies producing better than expected results will have rising securities prices, while companies producing less than expected results will not. CCI focuses its research on finding Positive Momentum & Positive Surprise, that is, companies that exceed investors’ expectations. Through thorough analysis of company fundamentals in the context of the prevailing economic environment, CCI’s team of investment professionals selects companies that meet its criteria of Positive Momentum & Positive Surprise. Companies whose stocks are experiencing Positive Momentum & Positive Surprise are considered attractive for purchase, and companies falling short or in line with CCI’s expectations are avoided or sold.
In managing its portion of the Fund's assets, Peregrine’s investment process is designed to profit from identifying “Information Gaps,” when a stock’s underlying fundamentals are not reflected in the price of the stock. These Information Gaps exist frequently in small, rapidly growing companies, creating the potential for dramatic stock price appreciation. Accordingly, Peregrine focuses its research on companies experiencing high growth and significant fundamental change. Fundamental research is the most important aspect of Peregrine’s investment process. A key driver of the research process is one-on-one meetings with management teams. During these discussions, the team assesses four key variables: the size of the growth opportunity; the company’s ability to manufacture, market, and sell its product or service; income statement and balance sheet quality and trends; and the credibility and capability of the management team. The process does not seek to identify companies that score top marks in all of these categories, rather the Peregrine investment team is focused on gaining a differentiated view of the company’s future earnings potential or underlying acquisition value versus the street — an Information Gap. The resulting portfolio is well-diversified and is structured to derive the majority of it returns through stock selection.
In response to market, economic, political, or other conditions, a sub-advisor may temporarily use a different investment strategy for defensive purposes. If a sub-advisor does so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective. The Fund’s investment objective is nonfundamental and may be changed without shareholder approval. However, the Fund’s Board of Trustees (Board) must approve any changes to nonfundamental investment objectives, and the Fund’s shareholders would be given at least 60 days' notice prior to any such change.
| Fund identifiers |
|---|
| NASDAQ | OASGX |
| CUSIP | 246118822 |
| Investment minimums |
|---|
| Initial investment | $1,000 |
| Subsequent Investments | $100 |
| Account features |
|---|
| Payroll Deduction | No |
| IRAs | Yes |
On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.
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 (08/31/2017)
as of quarter-end (06/30/2017)
| YTD | 1 year | 3 year | 5 year | 10 year | Lifetime | Inception date |
|---|
| NAV (view definition) | 14.99% | 16.13% | 4.35% | 10.45% | 4.78% | 7.58% | 08/01/2003 |
| Max offer price | 8.42% | 9.43% | 2.30% | 9.14% | 4.16% | 7.13% | |
| Russell 2500 Growth Index | 12.33% | 15.57% | 8.13% | 14.04% | 8.64% | n/a | |
| | 1 year | 3 year | 5 year | 10 year | Lifetime | Inception date |
|---|
| NAV (view definition) | 3.61% | 22.36% | 3.41% | 10.56% | 4.21% | 7.54% | 08/01/2003 |
| Max offer price | -2.34% | 15.30% | 1.38% | 9.25% | 3.59% | 7.08% | |
| Russell 2500 Growth Index | 4.13% | 21.44% | 7.65% | 14.33% | 8.18% | n/a | |
Returns for less than one year are not annualized.
Performance at NAV assumes that no front-end sales charge applied. Performance at max offer price assumes that a front-end sales charge applied.
Class A shares have a maximum up-front sales charge of 5.75% and are subject to an annual distribution fee.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
| Expense ratio |
|---|
| Gross | 1.66% |
| Net | 1.54% |
Net expense ratio reflects a contractual waiver from certain fees and/or expense reimbursements from July 29, 2017 to July 30, 2018. Please see the fee table in the Fund’s prospectus for more information.
| Quarterly total returns @ NAV |
|---|
| Year | 1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Annual return |
|---|
| 2017 | 9.01% | 3.61% | n/a | n/a | n/a |
| 2016 | -7.98% | 2.92% | 7.45% | 0.83% | 2.61% |
| 2015 | 4.35% | 1.30% | -12.65% | 2.23% | -5.61% |
| 2014 | -0.57% | 3.25% | -4.83% | 6.24% | 3.80% |
| 2013 | 12.29% | 2.74% | 10.79% | 7.48% | 37.37% |
| 2012 | 16.59% | -5.41% | 4.29% | 1.56% | 16.81% |
| 2011 | 9.88% | 0.79% | -21.76% | 9.13% | -5.44% |
| 2010 | 7.31% | -11.12% | 10.49% | 15.52% | 21.75% |
| 2009 | -11.52% | 18.93% | 22.01% | 5.91% | 35.99% |
| 2008 | -18.44% | 2.66% | -8.12% | -28.20% | -44.76% |
| 2007 | 1.96% | 7.47% | 0.13% | -4.25% | 5.06% |
On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.
Investment manager
Delaware Management Company
Sub-advisors
Columbus Circle Investors (CCI)
Clifford G. Fox, CFA
Senior Managing Director, Portfolio Manager
Start date on the Fund: April 2016
Clifford G. Fox shares primary responsibility for the day-to-day management of CCI’s share of the Fund’s assets. He has been a senior managing director at CCI since 2000. Fox has served as a portfolio manager of CCI’s small-cap portfolios since June 2002, mid-cap portfolios since April 1999 and SMID portfolios since October 2003.
Michael Iacono, CFA
Senior Managing Director, Portfolio Manager, Mid Cap
Start date on the Fund: April 2016
Michael Iacono shares primary responsibility for the day-to-day management of CCI’s share of the Fund’s assets. He has been a managing director at CCI since 2001. Iacono has served as a co-portfolio manager of CCI’s mid-cap portfolios since March 2014, and its SMID and small-cap portfolios since 2013.
Katerina Wasserman
Senior Managing Director, Portfolio Manager
Start date on the Fund: April 2016
Katerina Wasserman shares primary responsibility for the day-to-day management of CCI’s share of the Fund’s assets. She has served as a co-portfolio manager of CCI's small-cap, mid-cap, and SMID portfolios since 2009.
Christopher Corbett, CFA
Senior Vice President, Portfolio Manager
Start date on the Fund: July 2017
Christopher Corbett shares primary responsibility for the day-to-day management of CCI’s share of the Fund’s assets. He has served as a co-portfolio manager of CCI's small-cap, mid-cap, and SMID portfolios since March 2017.
Peregrine Capital Management, Inc. (Peregrine)
William A. Grierson, CFA
Principal, Portfolio Manager
Start date on the Fund: April 2016
William A. Grierson shares primary responsibility for the day-to-day management of Peregrine’s share of the Fund’s assets. He is a portfolio manager for the small-cap growth style and shares the responsibility for fundamental research, stock selection and portfolio management with his team. Grierson joined Peregrine’s small-cap growth team in 2000 as a securities analyst. Prior to Peregrine, he was a senior research analyst & portfolio manager with Kopp Investment Advisors for more than six years. Previously, he worked as a reporting analyst for Northern Trust. He graduated from Lawrence University in 1992. Grierson is a member of the CFA Society of Minnesota and the CFA Institute.
Daniel J. Hagen, CFA
Principal, Portfolio Manager
Start date on the Fund: April 2016
Daniel J. Hagen shares primary responsibility for the day-to-day management of Peregrine’s share of the Fund’s assets. He is a portfolio manager for the small-cap growth style and shares the responsibility for fundamental research, stock selection and portfolio management with his team. Hagen joined Peregrine’s small-cap growth team in 1996 as a research analyst. Prior to Peregrine, he was a managing director and assistant manager for the Equity Strategy Group at Piper Jaffray. He joined Piper Jaffray as a statistical analyst in 1983, upon graduating from the University of Minnesota. Hagen is a member of the CFA Society of Minnesota and the CFA Institute and a past board member of the Piper Jaffray Foundation. He regularly shares his financial expertise with a number of nonprofit organizations.
James P. Ross, CFA
Principal, Portfolio Manager
Start date on the Fund: April 2016
James P. Ross shares primary responsibility for the day-to-day management of Peregrine’s share of the Fund’s assets. He is a portfolio manager for the small-cap growth style and shares the responsibility for fundamental research, stock selection and portfolio management with his team. He joined Peregrine’s small-cap growth team in 1996 as a senior portfolio advisor. Before coming to Peregrine, Ross spent six years at Norwest Investment Management (now Wells Capital Management), where he held various positions, including chief investment officer and product manager for the Norwest Advantage Funds. He was also responsible for the analysis and oversight of the corporation’s benefit plans. He started his career working as a treasury analyst at Ecolab, Inc. He holds a BBA and an MBA from the University of Iowa and is a member of the CFA Society of Minnesota and the CFA Institute.
Paul E. von Kuster, CFA
Principal, Portfolio Manager
Start date on the Fund: April 2016
Mr. von Kuster shares primary responsibility for the day-to-day management of Peregrine’s share of the Fund’s assets. He is a portfolio manager for the small-cap growth style and shares the responsibility for fundamental research, stock selection and portfolio management with his team. He has been with the firm since its inception in 1984. Prior to Peregrine, Mr. von Kuster managed small-cap funds for the Trust Department at Norwest Bank Minnesota, N.A. (now Wells Fargo Bank Minnesota, N.A.). He began his career with Norwest Bank Minnesota, N.A. in 1972 after graduating from Princeton. Mr. von Kuster is a member of the CFA Society of Minnesota and the CFA Institute.
On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.
You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $75,000 in Optimum Funds. More information about these and other discounts is available from your financial intermediary, in the Fund's Prospectus under the section entitled "About your account," and in the Fund's statement of additional information (SAI) under the section entitled "Purchasing Shares."
The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.
| Shareholder fees |
|---|
| Maximum sales charge (load) imposed on purchases as a percentage of offering price | 5.75% |
| 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 | 1.06% |
| Distribution and service (12b-1) fees | 0.25% |
| Other expenses | 0.35% |
| Total annual fund operating expenses | 1.66% |
| Fee waivers and expense reimbursements | (0.12%) |
| Total annual fund operating expenses after fee waivers and expense reimbursements | 1.54% |
On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.
The chart below lists the percentage of the Fund's total assets under management that each sub-advisor manages on behalf of the Fund. The percentages include securities, cash, and any other assets managed by each sub-advisor in its sleeve of the Fund. These percentage allocations should be updated some time after 30 days following a given month end.
| Date | Columbus Circle Investors | Delaware Management Company | Peregrine Capital Management, Inc. | Total |
|---|
| 08/31/2016 | 49.31% | 1.33% | 49.35% | 100% |
| 09/30/2016 | 48.71% | 1.58% | 49.71% | 100% |
| 10/31/2016 | 48.96% | 1.63% | 49.41% | 100% |
| 11/30/2016 | 48.44% | 1.57% | 49.99% | 100% |
| 12/31/2016 | 48.40% | 1.51% | 50.09% | 100% |
| 01/31/2017 | 48.86% | 1.43% | 49.71% | 100% |
| 02/28/2017 | 48.93% | 1.46% | 49.61% | 100% |
| 03/31/2017 | 49.60% | 1.27% | 49.13% | 100% |
| 04/30/2017 | 49.97% | 1.30% | 48.73% | 100% |
| 05/31/2017 | 51.12% | 1.37% | 47.51% | 100% |
| 06/30/2017 | 50.60% | 1.03% | 48.37% | 100% |
| 07/31/2017 | 50.96% | 1.04% | 48.00% | 100% |
Total may not equal 100% due to rounding.
On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.
All third-party marks cited are the property of their respective owners.
Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.
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.