UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-00750 | |
Exact name of registrant as specified in charter: | Delaware Group® Equity Funds II | |
Address of principal executive offices: | 2005 Market Street | |
Philadelphia, PA 19103 | ||
Name and address of agent for service: | David F. Connor, Esq. | |
2005 Market Street | ||
Philadelphia, PA 19103 | ||
Registrant’s telephone number, including area code: | (800) 523-1918 | |
Date of fiscal year end: | November 30 | |
Date of reporting period: | November 30, 2020 |
Item 1. Reports to Stockholders
Visit delawarefunds.com/edelivery.
with offices in the United States, Europe, Asia, and Australia. As active
managers, we prioritize autonomy and accountability at the investment
team level in pursuit of opportunities that matter for clients. Delaware Funds
is one of the longest-standing mutual fund families, with more than 80 years
in existence.
1 | |
4 | |
8 | |
10 | |
11 | |
13 | |
15 | |
16 | |
18 | |
28 | |
38 | |
39 | |
43 | |
51 |
Delaware Value® Fund | December 8, 2020 (Unaudited) |
Delaware Value Fund (Institutional Class shares) | 1-year return | -0.68% |
Delaware Value Fund (Class A shares) | 1-year return | -0.90% |
Russell 1000® Value Index (benchmark) | 1-year return | +1.72% |
shelter-in-place orders in March and April, and the unemployment rate peaked at 14.7%. Central bankers and policymakers around the world responded to the pandemic-induced downturn by authorizing fiscal and monetary support programs worth trillions of dollars. In the US, the Federal Reserve implemented a range of support measures aimed at backstopping the financial markets and the economy, which led to a $3 trillion expansion in the size of the Fed’s balance sheet. By the end of the Fund’s fiscal year, the US economy had recouped 12.2 million jobs, and unemployment was down to 6.7%. (Sources: Bureau of Labor Statistics, Federal Reserve Bank.)
As the end of the Fund’s fiscal year approached, in our opinion the stock market’s rise seemed driven more by momentum and speculation than by signs of lasting fundamental improvement in areas such as corporate earnings and economic activity. Once again, a key support for stocks was the Federal Reserve, which signaled that monetary policy would likely remain very accommodative for years to come. In this environment, we saw lingering uncertainties associated with the coronavirus pandemic and remained focused on companies with more defensible business models that, in our view, could navigate through more adverse market conditions. |
several years.
valuation levels.
market conditions.
Delaware Value® Fund | November 30, 2020 (Unaudited) |
Fund and benchmark performance1,2 | Average annual total returns through November 30, 2020 | |||
1 year | 5 year | 10 year | Lifetime | |
Class A (Est. September 15, 1998) | ||||
Excluding sales charge | -0.90% | +7.36% | +11.16% | +7.33% |
Including sales charge | -6.61% | +6.09% | +10.50% | +7.04% |
Class C (Est. May 1, 2002) | ||||
Excluding sales charge | -1.68% | +6.56% | +10.33% | +6.47% |
Including sales charge | -2.62% | +6.56% | +10.33% | +6.47% |
Class R (Est. September 1, 2005) | ||||
Excluding sales charge | -1.16% | +7.09% | +10.88% | +7.16% |
Including sales charge | -1.16% | +7.09% | +10.88% | +7.16% |
Institutional Class (Est. September 15, 1998) | ||||
Excluding sales charge | -0.68% | +7.62% | +11.44% | +7.55% |
Including sales charge | -0.68% | +7.62% | +11.44% | +7.55% |
Class R6 (Est. May 2, 2016) | ||||
Excluding sales charge | -0.57% | — | — | +7.48% |
Including sales charge | -0.57% | — | — | +7.48% |
Russell 1000 Value Index | +1.72% | +8.44% | +10.93% | +7.36%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date. |
Fund expense ratios | Class A | Class C | Class R | Institutional Class | Class R6 |
Total annual operating expenses (without fee waivers) | 0.93% | 1.68% | 1.18% | 0.68% | 0.58% |
Net expenses (including fee waivers, if any) | 0.93% | 1.68% | 1.18% | 0.68% | 0.58% |
Type of waiver | n/a | n/a | n/a | n/a | n/a |
For period beginning November 30, 2010 through November 30, 2020 | Starting value | Ending value | |
Delaware Value Fund — Institutional Class shares | $10,000 | $29,547 | |
Russell 1000 Value Index | $10,000 | $28,208 | |
Delaware Value Fund — Class A shares | $9,425 | $27,153 |
through 7.
in the Russell 1000 Value Index as of
November 30, 2010. The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes
growth values.
stock market.
Nasdaq symbols | CUSIPs | |
Class A | DDVAX | 24610C881 |
Class C | DDVCX | 24610C865 |
Class R | DDVRX | 245907860 |
Institutional Class | DDVIX | 24610C857 |
Class R6 | DDZRX | 24610C840 |
do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Fund's expenses shown in the table assume reinvestment of all dividends and distributions.
Expense analysis of an investment of $1,000
Beginning Account Value 6/1/20 | Ending Account Value 11/30/20 | Annualized Expense Ratio | Expenses Paid During Period 6/1/20 to 11/30/20* | |
Actual Fund return† | ||||
Class A | $1,000.00 | $1,121.10 | 0.93% | $4.93 |
Class C | 1,000.00 | 1,116.90 | 1.68% | 8.89 |
Class R | 1,000.00 | 1,119.70 | 1.18% | 6.25 |
Institutional Class | 1,000.00 | 1,122.50 | 0.68% | 3.61 |
Class R6 | 1,000.00 | 1,123.10 | 0.58% | 3.08 |
Hypothetical 5% return (5% return before expenses) | ||||
Class A | $1,000.00 | $1,020.35 | 0.93% | $4.70 |
Class C | 1,000.00 | 1,016.60 | 1.68% | 8.47 |
Class R | 1,000.00 | 1,019.10 | 1.18% | 5.96 |
Institutional Class | 1,000.00 | 1,021.60 | 0.68% | 3.44 |
Class R6 | 1,000.00 | 1,022.10 | 0.58% | 2.93 |
*“Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
†Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns. |
Delaware Value® Fund | As of November 30, 2020 (Unaudited) |
Security type / sector | Percentage of net assets |
Common Stock | 98.50% |
Communication Services | 11.70% |
Consumer Discretionary | 6.08% |
Consumer Staples | 8.97% |
Energy | 2.88% |
Financials | 12.50% |
Healthcare | 17.55% |
Industrials | 12.07% |
Information Technology | 17.90% |
Materials | 3.08% |
Real Estate | 2.81% |
Utilities | 2.96% |
Short-Term Investments | 1.40% |
Total Value of Securities | 99.90% |
Receivables and Other Assets Net of Liabilities | 0.10% |
Total Net Assets | 100.00% |
Top 10 equity holdings | Percentage of net assets |
Dollar Tree | 3.40% |
Raytheon Technologies | 3.17% |
Walt Disney | 3.15% |
Cognizant Technology Solutions Class A | 3.15% |
Broadcom | 3.14% |
Caterpillar | 3.12% |
Allstate | 3.10% |
DuPont de Nemours | 3.08% |
American International Group | 3.06% |
Comcast Class A | 3.06% |
Delaware Value® Fund | November 30, 2020 |
Number of shares | Value (US $) | ||
Common Stock — 98.50% | |||
Communication Services — 11.70% | |||
AT&T | 9,584,508 | $275,554,605 | |
Comcast Class A | 6,342,147 | 318,629,465 | |
Verizon Communications | 4,915,733 | 296,959,431 | |
Walt Disney | 2,218,746 | 328,396,595 | |
1,219,540,096 | |||
Consumer Discretionary — 6.08% | |||
Dollar Tree † | 3,244,958 | 354,479,212 | |
Lowe's | 1,789,566 | 278,850,174 | |
633,329,386 | |||
Consumer Staples — 8.97% | |||
Archer-Daniels-Midland | 6,266,337 | 311,875,593 | |
Conagra Brands | 8,465,224 | 309,488,589 | |
Mondelez International Class A | 5,456,660 | 313,485,117 | |
934,849,299 | |||
Energy — 2.88% | |||
ConocoPhillips | 7,583,623 | 300,008,126 | |
300,008,126 | |||
Financials — 12.50% | |||
Allstate | 3,152,682 | 322,677,003 | |
American International Group | 8,311,300 | 319,486,372 | |
Bank of New York Mellon | 1,517,580 | 59,367,729 | |
Discover Financial Services | 3,859,543 | 293,981,390 | |
Truist Financial | 6,633,923 | 307,946,706 | |
1,303,459,200 | |||
Healthcare — 17.55% | |||
Cardinal Health | 5,792,444 | 316,209,518 | |
Cigna | 1,502,364 | 314,204,407 | |
CVS Health | 4,595,402 | 311,522,302 | |
Johnson & Johnson | 2,033,412 | 294,194,048 | |
Merck & Co. | 3,804,142 | 305,814,975 | |
Pfizer | 4,114,982 | 157,644,961 | |
Viatris † | 7,756,522 | 130,464,700 | |
1,830,054,911 | |||
Industrials — 12.07% | |||
Caterpillar | 1,872,692 | 325,080,604 | |
Honeywell International | 1,533,106 | 312,630,976 | |
Northrop Grumman | 958,562 | 289,734,950 | |
Raytheon Technologies | 4,607,807 | 330,471,918 | |
1,257,918,448 |
Number of shares | Value (US $) | ||
Common Stock (continued) | |||
Information Technology — 17.90% | |||
Broadcom | 814,700 | $327,167,226 | |
Cisco Systems | 7,107,147 | 305,749,464 | |
Cognizant Technology Solutions Class A | 4,200,441 | 328,180,455 | |
Intel | 6,038,329 | 291,953,207 | |
Motorola Solutions | 1,827,100 | 313,402,463 | |
Oracle | 5,194,200 | 299,809,224 | |
1,866,262,039 | |||
Materials — 3.08% | |||
DuPont de Nemours | 5,067,007 | 321,450,924 | |
321,450,924 | |||
Real Estate — 2.81% | |||
Equity Residential | 5,064,100 | 293,312,672 | |
293,312,672 | |||
Utilities — 2.96% | |||
Edison International | 5,034,800 | 308,935,328 | |
308,935,328 | |||
Total Common Stock (cost $7,261,213,624) | 10,269,120,429 | ||
Short-Term Investments — 1.40% | |||
Money Market Mutual Funds — 1.40% | |||
BlackRock FedFund – Institutional Shares (seven-day effective yield 0.00%) | 36,481,858 | 36,481,858 | |
Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 0.01%) | 36,481,858 | 36,481,858 | |
GS Financial Square Government Fund – Institutional Shares (seven-day effective yield 0.01%) | 36,481,859 | 36,481,859 | |
Morgan Stanley Government Portfolio – Institutional Share Class (seven-day effective yield 0.00%) | 36,481,858 | 36,481,858 | |
Total Short-Term Investments (cost $145,927,433) | 145,927,433 | ||
Total Value of Securities—99.90% (cost $7,407,141,057) | $10,415,047,862 |
† | Non-income producing security. |
Summary of abbreviations: |
GS – Goldman Sachs |
Delaware Value® Fund | November 30, 2020 |
Assets: | |
Investments, at value* | $10,415,047,862 |
Receivable for securities sold | 37,219,450 |
Dividends receivable | 27,451,965 |
Receivable for fund shares sold | 12,918,610 |
Total Assets | 10,492,637,887 |
Liabilities: | |
Due to custodian | 10 |
Payable for securities purchased | 33,720,826 |
Payable for fund shares redeemed | 25,744,381 |
Investment management fees payable to affiliates | 4,350,277 |
Other accrued expenses | 2,363,023 |
Distribution fees payable to affiliates | 589,052 |
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 75,210 |
Trustees' fees and expenses payable to affiliates | 69,984 |
Accounting and administration expenses payable to affiliates | 28,643 |
Legal fees payable to affiliates | 14,150 |
Reports and statements to shareholders expenses payable to affiliates | 10,080 |
Total Liabilities | 66,965,636 |
Total Net Assets | $10,425,672,251 |
Net Assets Consist of: | |
Paid-in capital | $7,338,896,204 |
Total distributable earnings (loss) | 3,086,776,047 |
Total Net Assets | $10,425,672,251 |
Net Asset Value | |
Class A: | |
Net assets | $1,505,191,420 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 71,188,215 |
Net asset value per share | $21.14 |
Sales charge | 5.75% |
Offering price per share, equal to net asset value per share / (1 - sales charge) | $22.43 |
Class C: | |
Net assets | $319,179,989 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 15,124,066 |
Net asset value per share | $21.10 |
Class R: | |
Net assets | $52,839,468 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 2,500,659 |
Net asset value per share | $21.13 |
Institutional Class: | |
Net assets | $7,427,158,945 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 351,278,779 |
Net asset value per share | $21.14 |
Class R6: | |
Net assets | $1,121,302,429 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 53,034,605 |
Net asset value per share | $21.14 |
*Investments, at cost | $7,407,141,057 |
Delaware Value® Fund | Year ended November 30, 2020 |
Investment Income: | |
Dividends | $322,654,082 |
Expenses: | |
Management fees | 58,444,914 |
Distribution expenses — Class A | 4,020,126 |
Distribution expenses — Class C | 4,026,508 |
Distribution expenses — Class R | 297,416 |
Dividend disbursing and transfer agent fees and expenses | 12,729,161 |
Accounting and administration expenses | 1,895,306 |
Reports and statements to shareholders expenses | 899,234 |
Trustees’ fees and expenses | 664,917 |
Legal fees | 610,623 |
Custodian fees | 407,439 |
Registration fees | 211,485 |
Audit and tax fees | 35,760 |
Other | 315,066 |
84,557,955 | |
Less expenses paid indirectly | (15,484) |
Total operating expenses | 84,542,471 |
Net Investment Income | 238,111,611 |
Net Realized and Unrealized Gain: | |
Net realized gain on investments | 69,465,897 |
Net change in unrealized appreciation (depreciation) of investments | (872,158,900) |
Net Realized and Unrealized Loss | (802,693,003) |
Net Decrease in Net Assets Resulting from Operations | $(564,581,392) |
Year ended | |||
11/30/20 | 11/30/19 | ||
Increase (Decrease) in Net Assets from Operations: | |||
Net investment income | $238,111,611 | $262,543,323 | |
Net realized gain | 69,465,897 | 439,173,865 | |
Net change in unrealized appreciation (depreciation) | (872,158,900) | 313,774,114 | |
Net increase (decrease) in net assets resulting from operations | (564,581,392) | 1,015,491,302 | |
Dividends and Distributions to Shareholders from: | |||
Distributable earnings: | |||
Class A | (90,690,637) | (117,124,328) | |
Class C | (20,807,776) | (26,349,930) | |
Class R | (3,428,708) | (5,869,279) | |
Institutional Class | (509,251,688) | (612,263,565) | |
Class R6 | (57,620,740) | (37,841,532) | |
(681,799,549) | (799,448,634) | ||
Capital Share Transactions: | |||
Proceeds from shares sold: | |||
Class A | 270,232,035 | 345,550,097 | |
Class C | 23,000,041 | 92,604,049 | |
Class R | 7,301,395 | 20,655,518 | |
Institutional Class | 2,051,438,936 | 3,466,134,595 | |
Class R6 | 324,407,162 | 733,412,953 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | |||
Class A | 87,274,794 | 113,220,748 | |
Class C | 19,761,795 | 25,020,804 | |
Class R | 3,424,905 | 5,846,466 | |
Institutional Class | 473,598,323 | 564,797,086 | |
Class R6 | 46,874,376 | 36,004,457 | |
3,307,313,762 | 5,403,246,773 |
Year ended | |||
11/30/20 | 11/30/19 | ||
Capital Share Transactions (continued): | |||
Cost of shares redeemed: | |||
Class A | $(708,156,064) | $(614,597,628) | |
Class C | (215,256,245) | (127,966,345) | |
Class R | (32,973,642) | (61,111,408) | |
Institutional Class | (5,146,040,267) | (3,569,942,665) | |
Class R6 | (349,030,222) | (215,611,209) | |
(6,451,456,440) | (4,589,229,255) | ||
Increase (decrease) in net assets derived from capital share transactions | (3,144,142,678) | 814,017,518 | |
Net Increase (Decrease) in Net Assets | (4,390,523,619) | 1,030,060,186 | |
Net Assets: | |||
Beginning of year | 14,816,195,870 | 13,786,135,684 | |
End of year | $10,425,672,251 | $14,816,195,870 |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of net investment income to average net assets |
Portfolio turnover |
1 | The average shares outstanding method has been applied for per share information. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
Year ended | ||||||||
11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | 11/30/16 | ||||
$22.44 | $22.29 | $21.63 | $19.56 | $18.15 | ||||
0.38 | 0.36 | 0.32 | 0.29 | 0.30 | ||||
(0.63) | 1.02 | 1.19 | 2.23 | 1.65 | ||||
(0.25) | 1.38 | 1.51 | 2.52 | 1.95 | ||||
(0.38) | (0.36) | (0.33) | (0.29) | (0.30) | ||||
(0.67) | (0.87) | (0.52) | (0.16) | (0.24) | ||||
(1.05) | (1.23) | (0.85) | (0.45) | (0.54) | ||||
$21.14 | $22.44 | $22.29 | $21.63 | $19.56 | ||||
(0.90%) | 7.09% | 7.10% | 13.05% | 11.02% | ||||
$1,505,191 | $1,992,320 | $2,135,717 | $2,392,927 | $3,928,981 | ||||
0.93% | 0.93% | 0.93% | 0.95% | 0.97% | ||||
1.93% | 1.68% | 1.44% | 1.43% | 1.64% | ||||
25% | 16% | 20% | 16% | 9% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of net investment income to average net assets |
Portfolio turnover |
1 | The average shares outstanding method has been applied for per share information. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
Year ended | ||||||||
11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | 11/30/16 | ||||
$22.38 | $22.23 | $21.57 | $19.50 | $18.10 | ||||
0.23 | 0.20 | 0.15 | 0.14 | 0.17 | ||||
(0.62) | 1.01 | 1.18 | 2.23 | 1.63 | ||||
(0.39) | 1.21 | 1.33 | 2.37 | 1.80 | ||||
(0.22) | (0.19) | (0.15) | (0.14) | (0.16) | ||||
(0.67) | (0.87) | (0.52) | (0.16) | (0.24) | ||||
(0.89) | (1.06) | (0.67) | (0.30) | (0.40) | ||||
$21.10 | $22.38 | $22.23 | $21.57 | $19.50 | ||||
(1.68%) | 6.29% | 6.29% | 12.26% | 10.18% | ||||
$319,180 | $542,875 | $545,157 | $607,974 | $818,879 | ||||
1.68% | 1.68% | 1.68% | 1.70% | 1.72% | ||||
1.18% | 0.93% | 0.69% | 0.68% | 0.89% | ||||
25% | 16% | 20% | 16% | 9% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of net investment income to average net assets |
Portfolio turnover |
1 | The average shares outstanding method has been applied for per share information. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
Year ended | ||||||||
11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | 11/30/16 | ||||
$22.43 | $22.27 | $21.61 | $19.54 | $18.14 | ||||
0.33 | 0.30 | 0.26 | 0.24 | 0.26 | ||||
(0.62) | 1.03 | 1.19 | 2.23 | 1.63 | ||||
(0.29) | 1.33 | 1.45 | 2.47 | 1.89 | ||||
(0.34) | (0.30) | (0.27) | (0.24) | (0.25) | ||||
(0.67) | (0.87) | (0.52) | (0.16) | (0.24) | ||||
(1.01) | (1.17) | (0.79) | (0.40) | (0.49) | ||||
$21.13 | $22.43 | $22.27 | $21.61 | $19.54 | ||||
(1.16%) | 6.85% | 6.82% | 12.78% | 10.70% | ||||
$52,840 | $81,159 | $116,330 | $170,221 | $184,004 | ||||
1.18% | 1.18% | 1.18% | 1.20% | 1.22% | ||||
1.68% | 1.43% | 1.19% | 1.18% | 1.39% | ||||
25% | 16% | 20% | 16% | 9% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of net investment income to average net assets |
Portfolio turnover |
1 | The average shares outstanding method has been applied for per share information. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
Year ended | ||||||||
11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | 11/30/16 | ||||
$22.45 | $22.30 | $21.64 | $19.56 | $18.16 | ||||
0.43 | 0.41 | 0.37 | 0.34 | 0.35 | ||||
(0.64) | 1.02 | 1.19 | 2.23 | 1.63 | ||||
(0.21) | 1.43 | 1.56 | 2.57 | 1.98 | ||||
(0.43) | (0.41) | (0.38) | (0.33) | (0.34) | ||||
(0.67) | (0.87) | (0.52) | (0.16) | (0.24) | ||||
(1.10) | (1.28) | (0.90) | (0.49) | (0.58) | ||||
$21.14 | $22.45 | $22.30 | $21.64 | $19.56 | ||||
(0.68%) | 7.36% | 7.36% | 13.38% | 11.23% | ||||
$7,427,159 | $11,037,713 | $10,406,840 | $9,242,253 | $8,870,934 | ||||
0.68% | 0.68% | 0.68% | 0.70% | 0.72% | ||||
2.18% | 1.93% | 1.69% | 1.68% | 1.89% | ||||
25% | 16% | 20% | 16% | 9% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets4 |
Ratio of net investment income to average net assets |
Portfolio turnover |
1 | Date of commencement of operations; ratios have been annualized and total return has not been annualized. |
2 | The average shares outstanding method has been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
4 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
5 | Portfolio turnover is representative of the Fund for the entire period. |
Year ended | 5/2/161 to 11/30/16 | |||||||
11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | |||||
$22.45 | $22.30 | $21.64 | $19.57 | $18.49 | ||||
0.45 | 0.44 | 0.39 | 0.36 | 0.22 | ||||
(0.64) | 1.01 | 1.19 | 2.23 | 1.04 | ||||
(0.19) | 1.45 | 1.58 | 2.59 | 1.26 | ||||
(0.45) | (0.43) | (0.40) | (0.36) | (0.18) | ||||
(0.67) | (0.87) | (0.52) | (0.16) | — | ||||
(1.12) | (1.30) | (0.92) | (0.52) | (0.18) | ||||
$21.14 | $22.45 | $22.30 | $21.64 | $19.57 | ||||
(0.57%) | 7.48% | 7.46% | 13.45% | 6.83% | ||||
$1,121,302 | $1,162,129 | $582,092 | $276,328 | $4,650 | ||||
0.58% | 0.58% | 0.58% | 0.60% | 0.62% | ||||
2.28% | 2.03% | 1.79% | 1.78% | 2.01% | ||||
25% | 16% | 20% | 16% | 9%5 |
Delaware Value® Fund | November 30, 2020 |
(US GAAP) and are consistently followed by the Fund.
than-not” threshold are recorded as a tax benefit or expense in the current year. Management has
analyzed the Fund’s tax positions taken or expected to be taken on the Fund’s federal income tax returns through the year ended November 30, 2020 and for all open tax years (years ended
November 30, 2017–November 30, 2019), and has concluded that no provision for federal income tax is
“Less expenses paid indirectly.” For the year ended November 30, 2020, the Fund earned $5,864 under this arrangement.
“Legal fees.”
Purchases | $2,759,558,345 |
Sales | 6,338,404,696 |
Cost of investments | $7,440,844,327 |
Aggregate unrealized appreciation of investments | $3,052,592,008 |
Aggregate unrealized depreciation of investments | (78,388,473) |
Net unrealized appreciation of investments | $2,974,203,535 |
income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
Level 1 | |
Securities | |
Assets: | |
Common Stock | $10,269,120,429 |
Short-Term Investments | 145,927,433 |
Total Value of Securities | $10,415,047,862 |
Year ended | |||
11/30/20 | 11/30/19 | ||
Ordinary income | $271,849,602 | $292,501,173 | |
Long-term capital gains | 409,949,947 | 506,947,461 | |
Total | $681,799,549 | $799,448,634 |
Shares of beneficial interest | $7,338,896,204 |
Undistributed ordinary income | 39,075,435 |
Undistributed long-term capital gains | 73,497,077 |
Unrealized appreciation of investments | 2,974,203,535 |
Net assets | $10,425,672,251 |
Year ended | |||
11/30/20 | 11/30/19 | ||
Shares sold: | |||
Class A | 14,074,024 | 16,275,817 | |
Class C | 1,160,200 | 4,446,572 | |
Class R | 377,038 | 995,164 | |
Institutional Class | 106,416,654 | 163,725,366 | |
Class R6 | 17,018,763 | 33,953,996 | |
Shares issued upon reinvestment of dividends and distributions: | |||
Class A | 4,230,831 | 5,807,783 | |
Class C | 937,235 | 1,296,289 | |
Class R | 164,612 | 301,718 | |
Institutional Class | 22,972,530 | 28,829,825 | |
Class R6 | 2,296,394 | 1,829,053 | |
169,648,281 | 257,461,583 | ||
Shares redeemed: | |||
Class A | (35,881,362) | (29,125,002) | |
Class C | (11,231,247) | (6,011,964) | |
Class R | (1,659,236) | (2,901,315) | |
Institutional Class | (269,777,829) | (167,587,844) | |
Class R6 | (18,046,940) | (10,118,594) | |
(336,596,614) | (215,744,719) | ||
Net increase (decrease) | (166,948,333) | 41,716,864 |
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||
Class A Shares | Class C Shares | Institutional Class Shares | Class R6 Shares | Class A Shares | Institutional Class Shares | Class R6 Shares | Value | |||||||||||
Year ended | ||||||||||||||||||
11/30/20 | 208,406 | 126,105 | 234,341 | 15,157 | 68,124 | 281,354 | 234,341 | $11,666,097 | ||||||||||
Year ended | ||||||||||||||||||
11/30/19 | 282,921 | 82,800 | 9,685,519 | 6,734 | 24,120 | 351,714 | 9,685,782 | 217,219,295 |
then ended.
Delaware Value® Fund
Philadelphia, Pennsylvania
January 21, 2021
(A) Long-Term Capital Gain Distributions (Tax Basis) | 60.13% |
(B) Ordinary Income Distributions (Tax Basis)* | 39.87% |
Total Distributions (Tax Basis) | 100.00% |
(C) Qualified Dividends1 | 100.00% |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Interested Trustee | |||||
Shawn K. Lytle1 610 Market Street Philadelphia, PA 19106-2354 February 1970 | President, Chief Executive Officer, and Trustee | President and Chief Executive Officer since August 2015 Trustee since September 2015 | Global Head of Macquarie Investment Management2 (January 2019–Present) Head of Americas of Macquarie Group (December 2017–Present) Deputy Global Head of Macquarie Investment Management (2017–2019) Head of Macquarie Investment Management Americas (2015–2017) | 85 | Trustee — UBS Relationship Funds, SMA Relationship Trust, and UBS Funds (May 2010–April 2015) |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Independent Trustees | |||||
Jerome D. Abernathy 610 Market Street Philadelphia, PA 19106-2354 July 1959 | Trustee | Since January 2019 | Managing Member, Stonebrook Capital Management, LLC (financial technology: macro factors and databases) (January 1993-Present) | 85 | None |
Thomas L. Bennett 610 Market Street Philadelphia, PA 19106-2354 October 1947 | Chair and Trustee | Trustee since March 2005 Chair since March 2015 | Private Investor (March 2004–Present) | 85 | None |
Ann D. Borowiec 610 Market Street Philadelphia, PA 19106-2354 November 1958 | Trustee | Since March 2015 | Chief Executive Officer, Private Wealth Management (2011–2013) and Market Manager, New Jersey Private Bank (2005–2011) — J.P. Morgan Chase & Co. | 85 | Director — Banco Santander International (October 2016–December 2019) Director — Santander Bank, N.A. (December 2016–December 2019) |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Joseph W. Chow 610 Market Street Philadelphia, PA 19106-2354 January 1953 | Trustee | Since January 2013 | Private Investor (April 2011–Present) | 85 | Director and Audit Committee Member — Hercules Technology Growth Capital, Inc. (July 2004–July 2014) |
John A. Fry 610 Market Street Philadelphia, PA 19106-2354 May 1960 | Trustee | Since January 2001 | President — Drexel University (August 2010–Present) President — Franklin & Marshall College (July 2002–June 2010) | 85 | Director; Compensation Committee and Governance Committee Member — Community Health Systems (May 2004–Present) Director — Drexel Morgan & Co. (2015–2019) Director and Audit Committee Member — vTv Therapeutics Inc. (2017–Present) Director and Audit Committee Member — FS Credit Real Estate Income Trust, Inc. (2018–Present) Director — Federal Reserve Bank of Philadelphia (January 2020–Present) |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Lucinda S. Landreth 610 Market Street Philadelphia, PA 19106-2354 June 1947 | Trustee | Since March 2005 | Private Investor (2004–Present) | 85 | None |
Frances A. Sevilla-Sacasa 610 Market Street Philadelphia, PA 19106-2354 January 1956 | Trustee | Since September 2011 | Private Investor (January 2017–Present) Chief Executive Officer — Banco Itaú International (April 2012–December 2016) Executive Advisor to Dean (August 2011–March 2012) and Interim Dean (January 2011–July 2011) — University of Miami School of Business Administration President — U.S. Trust, Bank of America Private Wealth Management (Private Banking) (July 2007-December 2008) | 85 | Trust Manager and Audit Committee Chair — Camden Property Trust (August 2011–Present) Director; Strategic Planning and Reserves Committee and Nominating and Governance Committee Member — Callon Petroleum Company (December 2019–Present) Director; Audit Committee Member — Carrizo Oil & Gas, Inc. (March 2018–December 2019) |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Thomas K. Whitford 610 Market Street Philadelphia, PA 19106-2354 March 1956 | Trustee | Since January 2013 | Vice Chairman (2010–April 2013) — PNC Financial Services Group | 85 | Director — HSBC North America Holdings Inc. (December 2013–Present) Director — HSBC USA Inc. (July 2014–Present) Director — HSBC Bank USA, National Association (July 2014–March 2017) Director — HSBC Finance Corporation (December 2013–April 2018) |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Christianna Wood 610 Market Street Philadelphia, PA 19106-2354 August 1959 | Trustee | Since January 2019 | Chief Executive Officer and President — Gore Creek Capital, Ltd. (August 2009–Present) | 85 | Director; Finance Committee and Audit Committee Member — H&R Block Corporation (July 2008–Present) Director; Investments Committee, Capital and Finance Committee, and Audit Committee Member — Grange Insurance (2013–Present) Trustee; Chair of Nominating and Governance Committee and Audit Committee Member — The Merger Fund (2013–Present), The Merger Fund VL (2013–Present); WCM Alternatives: Event-Driven Fund (2013–Present), and WCM Alternatives: Credit Event Fund (December 2017–Present) Director; Chair of Governance Committee and Audit Committee Member — International Securities Exchange (2010–2016) |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Janet L. Yeomans 610 Market Street Philadelphia, PA 19106-2354 July 1948 | Trustee | Since April 1999 | Vice President and Treasurer (January 2006–July 2012), Vice President — Mergers & Acquisitions (January 2003–January 2006), and Vice President and Treasurer (July 1995–January 2003) — 3M Company | 85 | Director; Personnel and Compensation Committee Chair; Member of Nominating, Investments, and Audit Committees for various periods throughout directorship — Okabena Company (2009–2017) |
Officers | |||||
David F. Connor 610 Market Street Philadelphia, PA 19106-2354 December 1963 | Senior Vice President, General Counsel, and Secretary | Senior Vice President, since May 2013; General Counsel since May 2015; Secretary since October 2005 | David F. Connor has served in various capacities at different times at Macquarie Investment Management. | 85 | None3 |
Daniel V. Geatens 610 Market Street Philadelphia, PA 19106-2354 October 1972 | Vice President and Treasurer | Vice President and Treasurer since October 2007 | Daniel V. Geatens has served in various capacities at different times at Macquarie Investment Management. | 85 | None3 |
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer |
Richard Salus 610 Market Street Philadelphia, PA 19106-2354 October 1963 | Senior Vice President and Chief Financial Officer | Senior Vice President and Chief Financial Officer since November 2006 | Richard Salus has served in various capacities at different times at Macquarie Investment Management. | 85 | None |
Chief Executive Officer
Delaware Funds®
by Macquarie
Philadelphia, PA
Stonebrook Capital
Management, LLC
Jersey City, NJ
Delaware Funds
by Macquarie
Private Investor
Rosemont, PA
Officer
Private Wealth Management
J.P. Morgan Chase & Co.
New York, NY
President
State Street Corporation
Boston, MA
Drexel University
Philadelphia, PA
Officer
Assurant, Inc.
New York, NY
Sevilla-Sacasa
Officer
Banco Itaú International
Miami, FL
PNC Financial Services Group
Pittsburgh, PA
and President
Gore Creek Capital, Ltd.
Golden, CO
Treasurer
3M Company
St. Paul, MN
General Counsel,
and Secretary
Delaware Funds
by Macquarie
Philadelphia, PA
Treasurer
Delaware Funds
by Macquarie
Philadelphia, PA
Chief Financial Officer
Delaware Funds
by Macquarie
Philadelphia, PA
delawarefunds.com/literature.
and use
broker/dealers; and other financial services companies with whom we have joint marketing agreements). Our service providers also include nonfinancial companies and individuals (for example, consultants; information services vendors; and companies that perform mailing or marketing services on our behalf). Information obtained from a report prepared by a service provider may be kept by the service provider and shared with other persons; however, we require our service providers to protect your personal information and to use or disclose it only for the work they are performing for us, or as permitted by law.
This and other information can be found in the Fund’s prospectus and, if available, its summary prospectus.
A Delaware Funds by Macquarie prospectus may be obtained by visiting delawarefunds.com/literature or
calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully
before investing.
Municipal fixed income funds
out the convenient options provided by Macquarie Investment Management. We try to make it easy for you to avoid some of the sales charges that you might otherwise have to pay when you withdraw and invest your money with another firm.
exchange all or part of your shares in one Delaware Funds® by Macquarie mutual fund for shares of the same class of another fund without paying a front-end sales charge or a contingent deferred sales charge (CDSC).
any changes:
or $75 quarterly. If the annual amount you withdraw is less than 12% of your account balance at the time the systematic withdrawal plan is established, the CDSC ordinarily applicable to certain fund classes will be waived. More details are available in your prospectus or at
delawarefunds.com/literature.
read it carefully before buying shares through an exchange.
800 523-1918, weekdays from 8:30am to
6:00pm ET
institutions representatives only
800 362-7500
P.O. Box 9876
Providence, RI 02940-8076
4400 Computer Drive
Westborough, MA 01581-1722
Macquarie Investment Management (MIM) is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Delaware Funds® by Macquarie Internet Web site at www.delawarefunds.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Jerome D. Abernathy
John A. Fry
Thomas K. Whitford, Chair
Christianna Wood
Item 4. Principal Accountant Fees and Services
(a) Audit fees.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $30,910 for the fiscal year ended November 30, 2020.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $31,670 for the fiscal year ended November 30, 2019.
(b) Audit-related fees.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended November 30, 2020.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $903,282 for the registrant’s fiscal year ended November 30, 2020. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year-end audit procedures; group reporting and subsidiary statutory audits.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended November 30, 2019.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $909,000 for the registrant’s fiscal year ended November 30, 2019. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year-end audit procedures; group reporting and subsidiary statutory audits.
(c) Tax fees.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $4,850 for the fiscal year ended November 30, 2020. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2020. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $4,850 for the fiscal year ended November 30, 2019. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2019. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
(d) All other fees.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended November 30, 2020.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2020. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended November 30, 2019.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2019. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Funds® by Macquarie.
Service | Range of Fees |
Audit Services | |
Statutory audits or financial audits for new Funds | up to $40,000 per Fund |
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters | up to $10,000 per Fund |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) | up to $25,000 in the aggregate |
Audit-Related Services | |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) | up to $25,000 in the aggregate |
Tax Services | |
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) | up to $25,000 in the aggregate |
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) | up to $5,000 per Fund |
Review of federal, state, local and international income, franchise and other tax returns | up to $5,000 per Fund |
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
Service | Range of Fees |
Non-Audit Services | |
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters | up to $10,000 in the aggregate |
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $8,455,000 and $4,687,000 for the registrant’s fiscal years ended November 30, 2020 and November 30, 2019, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
(a) (1) Code of Ethics
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT. |
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
DELAWARE GROUP® EQUITY FUNDS II
/s/SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | February 3, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | February 3, 2021 |
/s/RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | February 3, 2021 |