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Before
Change
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After
Change
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Name
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Delaware
Small Cap Growth Trust
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Delaware
Smid-Cap Growth Trust
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Investment
Objectives
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The
Trust seeks capital appreciation by investing primarily in securities of
emerging or other growth-oriented companies. The Trust’s
benchmark is the Russell 2000®
Growth Index.
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The
Trust seeks long term capital appreciation by investing primarily in
common stocks of growth oriented companies The Trust’s
benchmark is the Russell 2500®
Growth Index.
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Investment
Strategies
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The
Trust invests primarily in small companies that the sub-advisor believes
offer above-average opportunities for long-term price appreciation because
they are poised to benefit from changing and dominant trends within
society or the political arena. The sub-advisor uses a
bottom-up approach to stock selection that seeks market leaders, strong
product cycles, innovative concepts, and industry trends. The
sub-advisor relies on its own research in choosing securities for the
Trust portfolio, reviewing price-to-earnings ratios, estimated growth
rates, market capitalization, and cash flows, ultimately investing in:
common stocks, American Depository Receipts (ADRs), repurchase agreements,
restricted securities, illiquid securities, convertible securities,
warrants, preferred stocks, bonds, and lending securities.
The
Trust may buy or sell securities on a “when issued” or “delayed delivery”
basis, borrow money from banks as a temporary measure for extraordinary or
emergency purposes, or to facilitate redemptions, or take temporary
defensive positions.
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The
Trust investment primarily in stocks
of growth-oriented companies that the sub-advisor believes have
long-term capital appreciation potential and expect to grow faster than
the U.S. economy. The sub-advisor generally considers companies
that, at the time of purchase, have total market capitalizations within
the range of market capitalizations of companies in the Russell 2500®
Growth Index. Under normal circumstances the Trust will
invest at least 80% of its net assets in equity securities of small- and
mid-capitalization companies (80% Policy).
The
sub-advisor uses the bottom up approach, seeking to select securities of
companies, the sub-advisor believes have attractive end market potential,
dominant business models, and strong cash flow generation that are
attractively priced compared to intrinsic value of the
securities. The sub-advisor also considers a company’s
operational efficiencies, management’s plans for capital allocation, and
the company’s shareholder orientation. These factors give the
sub-advisor insight into the outlook for a company, helping to identify
companies poised for free cash flow growth. The sub-advisor
believes that sustainable free cash flow growth, if it occurs, may result
in price appreciation for the company’s stock.
The
Fund generally holds 25 to 30 stocks, although from time to time it may
hold fewer or more names, depending upon the Sub-Advisor’s assessment of
the investment opportunities available. In addition, the
Sub-Advisor maintains a diversified portfolio representing a number of
different industries. Such an approach helps to minimize the
impact that any one security or industry could have on the Fund if it were
to experience a period of slow or declining
growth.
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| Before Change | After Change | |
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Primary
Risks
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Company Size
Risk, Industry and Security Risk, Interest Rate Risk,
International Risk, Liquidity Risk, Market Risk. For
specific definitions/explanations of these types of risks, please see the
disclosure statement for this Trust. In general, because this
Trust expects to invest in the stocks of small and/or medium-sized
companies typically involve greater risk, particularly in the short term,
than those investing in larger, more established
companies. Foreign investments are subject to risks and not
ordinarily associated with domestic investments, such as currency,
economic and political risks, and different accounting
standards.
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Market Risk, Industry/Sector
Risk, Small- and Medium-size company risk, International Risk, Futures and
Options Risk, Limited Number of Stocks Risk, Liquidity
Risk. For specific definitions/explanations of these
types of risks, please see the disclosure statement for this
Trust. In general, because this Trust expects to invest in the
stocks of small- and medium-sized companies typically involve greater risk
than those of larger companies because of limited financial resources or
dependence on narrow product lines. International investments
are subject to risks and not ordinarily associated with domestic
investments, such as currency, economic and political risks, and different
accounting standards.
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Manager
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Wilmington
Trust Retirement and Institutional Services Company (the “Trustee”),
formerly known as AST Capital Trust Company, serves as the Trustee of the
Trust and maintains ultimate fiduciary authority over the management of,
and investments made, in the Trust. The Trustee is a wholly
owned subsidiary of Wilmington Trust FSB and a Delaware State chartered
trust company. The Trustee has engaged Delaware Investment
Advisers, a series of Delaware Management Business Trust, to act as the
investment sub-advisor to the Trust.
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Wilmington
Trust Retirement and Institutional Services Company (the “Trustee”),
formerly known as AST Capital Trust Company, serves as the Trustee of the
Trust and maintains ultimate fiduciary authority over the management of,
and investments made, in the Trust. The Trustee is a wholly
owned subsidiary of Wilmington Trust FSB and a Delaware State chartered
trust company. The Trustee has engaged Delaware Investment
Advisers, a series of Delaware Management Business Trust, to act as the
investment sub-advisor to the Trust.
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Expense
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0.80%.
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0.80%
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