Objective
Optimum Small-Mid Cap Value Fund seeks long-term growth of capital.
Strategy
Under normal circumstances, the Fund will invest 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® Value Index, and mid-market capitalization companies are those companies whose market capitalization is similar to the market capitalization of companies in the Russell Midcap® Value Index. As of June 30, 2017, the Russell 2000 Value Index had a market capitalization range between $14.2 million and $5.5 billion, and the Russell Midcap Value Index had a market capitalization range between $1.8 billion and $31.1 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-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 LSV Asset Management (LSV) and Westwood Management Corp. (Westwood) 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 its own investment style and strategy.
In managing its portion of the Fund's assets, LSV uses a quantitative investment model to make investment decisions for its sleeve of the Fund. The investment model ranks securities based on fundamental measures of value (such as the price-to-earnings ratio) and indicators of near-term appreciation potential (such as recent price appreciation). The investment model selects stocks to buy from the higher-ranked stocks and selects stocks to sell from those whose rankings have decreased, subject to overall risk controls.
In managing its portion of the Fund's assets, Westwood utilizes a value style of investing in choosing common stocks that it believes have limited downside risk and it believes are currently undervalued in the market. Other key metrics for evaluating the risk/return profile of an investment may include, but are not limited to, strong free cash flow; an improving return on equity; a declining debt/equity ratio; and in the case of common equities, positive earnings surprises without a corresponding increase in Wall Street estimates. Westwood also has disciplines in place that generally serve as sell signals, such as a security reaching a predetermined price target or a change to a company's fundmentals that negatively impacts the original investment thesis.
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 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 | OASVX |
| CUSIP | 246118772 |
| 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 (03/31/2018)
as of quarter-end (03/31/2018)
| YTD | 1 year | 3 year | 5 year | 10 year | Lifetime | Inception date |
|---|
| NAV (view definition) | -2.57% | 4.59% | 3.34% | 5.96% | 6.39% | 7.58% | 08/01/2003 |
| Max offer price | -8.20% | -1.42% | 1.33% | 4.71% | 5.77% | 7.15% | |
| Russell 2500 Value Index | -2.65% | 5.72% | 7.26% | 9.88% | 9.34% | n/a | |
| | 1 year | 3 year | 5 year | 10 year | Lifetime | Inception date |
|---|
| NAV (view definition) | -2.57% | 4.59% | 3.34% | 5.96% | 6.39% | 7.58% | 08/01/2003 |
| Max offer price | -8.20% | -1.42% | 1.33% | 4.71% | 5.77% | 7.15% | |
| Russell 2500 Value Index | -2.65% | 5.72% | 7.26% | 9.88% | 9.34% | 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 | 1.56% |
| Net | 1.47% |
Net expense ratio reflects a contractual waiver of 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 |
|---|
| 2018 | -2.57% | n/a | n/a | n/a | n/a |
| 2017 | 2.00% | 0.29% | 3.26% | 3.66% | 9.49% |
| 2016 | 0.61% | 1.56% | 4.95% | 10.23% | 18.21% |
| 2015 | 1.64% | -0.22% | -13.08% | 0.90% | -11.06% |
| 2014 | 1.22% | 2.46% | -6.92% | 2.45% | -1.10% |
| 2013 | 10.18% | 1.67% | 9.45% | 8.18% | 32.64% |
| 2012 | 13.63% | -7.82% | 5.71% | 5.46% | 16.77% |
| 2011 | 9.37% | -2.54% | -22.38% | 17.50% | -2.78% |
| 2010 | 9.10% | -10.72% | 11.57% | 14.96% | 24.92% |
| 2009 | -13.39% | 25.13% | 22.89% | 5.49% | 40.49% |
| 2008 | -5.38% | -0.03% | -5.31% | -33.03% | -40.01% |
On Nov. 4, 2014, Class B shares of the Fund converted to Class A shares.
Investment manager
Delaware Management Company
Sub-advisors
LSV Asset Management
Josef Lakonishok, Ph.D.
Founding Partner, Portfolio Manager, CEO, CIO
Start date on the Fund: January 2016
Josef Lakonishok shares primary responsibility for the day-to-day management of LSV’s share of the Fund’s assets. Dr. Lakonishok has served as CEO, CIO, partner and portfolio manager for LSV since its founding in 1994.
Menno Vermeulen, CFA
Partner, Portfolio Manager
Start date on the Fund: January 2016
Menno Vermeulen shares primary responsibility for the day-to-day management of LSV’s share of the Fund’s assets. Vermeulen has served as a portfolio manager for LSV since 1995 and a partner since 1998. Prior to joining LSV, he worked at ABP where he was responsible for the development and implementation of quantitative active investment strategies.
Puneet Mansharamani, CFA
Partner, Portfolio Manager
Start date on the Fund: January 2016
Puneet Mansharamani shares primary responsibility for the day-to-day management of LSV’s share of the Fund’s assets. He has served as a partner and portfolio manager for LSV since 2006. Prior to joining LSV, Mansharamani was an analyst at Institutional Trust National City Corporation. Prior to this experience, he was a systems consultant for Maximations, Inc.
Greg Sleight
Partner, Portfolio Manager
Start date on the Fund: January 2016
Greg Sleight shares primary responsibility for the day-to-day management of LSV’s share of the Fund’s assets. He has served as a quantitative analyst of LSV since 2006, a partner since 2012 and portfolio manager since 2014 and is part of LSV's quantitative and implementation team, which is responsible for the day-to-day data management, portfolio implementation and ongoing enhancement of our models and systems.
Guy Lakonishok, CFA
Partner, Portfolio Manager
Start date on the Fund: January 2016
Guy Lakonishok shares primary responsibility for the day-to-day management of LSV’s share of the Fund’s assets. Lakonishok has served as a quantitative analyst of LSV since 2009, a partner since 2013 and a portfolio manager since 2014. Prior to joining LSV, he was a vice president in the quantitative equity group at BlackRock.
Westwood Management Corp.
Prashant Inamdar, CFA
Vice President, Portfolio Manager, Research Analyst
Start date on the Fund: December 2013
Prashant Inamdar is part of a team of portfolio managers primarily responsible for the day-to-day management of Westwood’s share of the Fund’s assets. All of the portfolio team members participate in the investment decision process when determining the stock selection for the portfolio and the appropriate weight of the stocks selected. Inamdar is a vice president and portfolio manager who joined Westwood in December 2013. Prior to joining Westwood, Inamdar worked at Chilton Investment Company as vice president of research from 2010 to 2012. Most recently, he served as senior analyst at 3 Twelve Capital from 2012 to 2013. Inamdar has held his Fund responsibilities since December 2013.
Tom Lieu, CFA
Senior Vice President, Portfolio Manager, Research Analyst
Start date on the Fund: January 2011
Tom Lieu is part of a team of portfolio managers primarily responsible for the day-to-day management of Westwood's share of the Fund's assets. All of the portfolio team members participate in the investment process when determining the stock selection for the portfolio and the appropriate weight of the stocks selected. Lieu is a senior vice president and portfolio manager who joined the Westwood team in 2010. Prior to joining Westwood, Lieu held positions at Lazard and Bank of America. Most recently, he served as a research analyst at Persistency Capital, LLC, in New York City. He has held his Fund responsibilities since January 2011.
Susan Schmidt, CFA
Senior Vice President, Portfolio Manager
Start date on the Fund: August 2015
Susan Schmidt is part of a team of portfolio managers primarily responsible for the day-to-day management of Westwood’s share of the Fund’s assets. All of the portfolio team members participate in the investment decision process when determining the stock selection for the portfolio and the appropriate weight of the stocks selected. Schmidt is a senior vice president and portfolio manager who joined Westwood in 2015. Prior to joining Westwood, Schmidt worked at Essex Investment Management Company from 2008 to 2009, and most recently, served as portfolio manager at Mesirow Financial from 2009 to 2015. She has held her Fund responsibilities since August 2015.
Grant Taber, CFA
Senior Vice President, Portfolio Manager, Research Analyst
Start date on the Fund: December 2008
Grant Taber is part of a team of portfolio managers primarily responsible for the day-to-day management of Westwood’s share of the Fund’s assets. All of the portfolio team members participate in the investment decision process when determining the stock selection for the portfolio and the appropriate weight of the stocks selected. Taber is a senior vice president and portfolio manager who joined Westwood in 2008. Prior to joining Westwood, Taber worked at Bessemer Trust Company from 2004 until 2008, where he served as vice president, large cap research analyst. He has held his Fund responsibilities since December 2008.
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 | 0.96% |
| Distribution and service (12b-1) fees | 0.25% |
| Other expenses | 0.35% |
| Total annual fund operating expenses | 1.56% |
| Fee waivers and expense reimbursements | (0.09%) |
| Total annual fund operating expenses after fee waivers and expense reimbursements | 1.47% |
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 | LSV Asset Management | Westwood Management Corporation | Total |
|---|
| 03/31/2017 | 54.32% | 45.68% | 100% |
| 04/30/2017 | 54.67% | 45.33% | 100% |
| 05/31/2017 | 53.92% | 46.08% | 100% |
| 06/30/2017 | 54.41% | 45.59% | 100% |
| 07/31/2017 | 54.23% | 45.77% | 100% |
| 08/31/2017 | 54.24% | 45.76% | 100% |
| 09/30/2017 | 54.20% | 45.80% | 100% |
| 10/31/2017 | 53.60% | 46.40% | 100% |
| 11/30/2017 | 53.97% | 46.03% | 100% |
| 12/31/2017 | 54.22% | 45.78% | 100% |
| 01/31/2018 | 54.12% | 45.88% | 100% |
| 02/28/2018 | 53.57% | 46.43% | 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.