Fund Description

The fund invests primarily in small companies whose stock prices, in the portfolio managers' opinion, appear low relative to underlying value or future potential. The investment manager, Delaware Management Company, assesses financial strength, management, industry prospects, and anticipated company changes that may improve outlook. Stock selection emphasizes free cash flow, seeking companies believed to have a sustainable ability to buy back shares, lower debt, and/or increase or initiate dividends. Under normal circumstances, at least 80% of net assets plus borrowings are invested in small-cap companies, generally those with market caps less than 3.5 times the Russell 2000 Index's dollar-weighted median at purchase. Up to 15% may be invested in REITs.