Macquarie Labor Select International Equity Portfolio

Objective

Macquarie Labor Select International Equity Portfolio seeks maximum long-term total return.

Strategy

The Portfolio will primarily invest in equity securities of companies that are organized, have a majority of their assets, or derive most of their operating income outside of the United States, and which, in the opinion of the Portfolio’s portfolio managers, are undervalued at the time of purchase based on the rigorous fundamental analysis that the portfolio managers employ. In addition to following these quantitative guidelines, the Sub-advisor will select securities of issuers that present certain characteristics that are compatible or operate in accordance with certain investment policies or restrictions followed by organized labor. 

Under normal circumstances, the Portfolio will invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities (80% Policy). The Portfolio’s 80% Policy may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change. Under normal circumstances, the Portfolio will invest at least 40% of its total assets in securities of non-US issuers. This policy is in addition to the 80% Policy.

In selecting portfolio securities, the portfolio managers emphasize strong performance in falling markets relative to other mutual funds focusing on international equity investments. Equity securities include, but are not limited to, common stocks, securities convertible into common stocks, securities having common stock characteristics, such as rights and warrants to purchase common stocks, and preferred shares. To the extent that this Portfolio invests in convertible debt securities, those securities will be purchased on the basis of their equity characteristics, and ratings of those securities, if any, will not be an important factor in their selection. Additionally, the Portfolio may, from time to time, hold its assets in cash (which may be US dollars or foreign currency, including the euro) or may invest in short-term debt securities or other money market instruments. Except when a temporary defensive approach is appropriate, the Portfolio generally will not hold more than 5% of its assets in cash or such short-term instruments.

From time to time, the Portfolio may invest up to 30% of its net assets in securities of issuers in the commercial banking industry; to the extent the Portfolio invests 30% of its net assets in such securities, it may be slightly more sensitive to movement in the commercial banking industry.

The portfolio managers’ approach in selecting investments for the Portfolio is primarily quantitatively oriented to individual stock selection and is value driven. In selecting stocks for the Portfolio, the portfolio managers identify those stocks that they believe will provide the highest total return over a market cycle, taking into consideration the movement in the price of the individual security, the impact of currency adjustment on a US-domiciled, dollar-based investor, and the investment guidelines described below. The portfolio managers conduct extensive fundamental research on a global basis, and it is through this research effort that securities with the potential for maximum long-term total return are identified. The center of the fundamental research effort is a value-oriented dividend discount methodology applied to individual securities and market analysis that isolates value across country boundaries. The portfolio managers’ approach focuses on future anticipated dividends and discounts the value of those dividends back to what they would be worth if they were being paid today. Comparisons of the values of different possible investments are then made.

Supplementing the portfolio managers’ quantitative approach to stock selection, the portfolio managers also attempt to follow certain qualitative investment guidelines that seek to identify issuers that present certain characteristics that are compatible or operate in accordance with certain investment policies or restrictions followed by organized labor. These qualitative investment guidelines include country screens, as well as additional issuer-specific criteria. The country screens require that the securities are of companies domiciled in those countries that are included in the MSCI EAFE (Europe, Australasia, and Far East) Index and Canada. Nations that are currently in this Index include, among others, Japan, the United Kingdom, Germany, France, and the Netherlands. In addition, the Portfolio will tend to favor investments in issuers located in those countries that the portfolio managers perceive as enjoying favorable relations with the US. Pursuant to the Portfolio’s issuer-specific criteria, the Portfolio will: (1) invest only in companies that are publicly traded; (2) focus on companies that show, in the portfolio managers’ opinion, evidence of pursuing fair labor practices; (3) focus on companies that have not been subject to penalties or tariffs imposed by applicable US government agencies for unfair trade practices within the previous two years; and (4) not invest in initial public offerings. Evidence of pursuing fair labor practices would include whether a company has demonstrated patterns of noncompliance with applicable labor or health and safety laws. The qualitative labor sensitivity factors that the portfolio managers will utilize in selecting securities will vary over time, and will be solely in the portfolio managers’ discretion.

The portfolio managers do not normally intend to respond to short-term market fluctuations or to acquire securities for the purpose of short-term trading; however, the portfolio managers may take advantage of short-term opportunities that are consistent with the Portfolio’s investment objective. It is anticipated that the annual turnover rate of the Portfolio, under normal circumstances, will generally not exceed 100%.

Currency considerations carry a special risk for a portfolio of international securities, and the portfolio managers use a purchasing power parity approach to evaluate currency risk. In this regard, the Portfolio may actively carry out hedging activities, and may invest in forward foreign currency contracts to hedge currency risks associated with the purchase of individual securities denominated in a particular currency.

Portfolio information
Inception date12/19/1995
Dividends paid (if any)Annually
Capital gains paid (if any)December
Portfolio identifiers
NASDAQDELPX
CUSIP246248876
Investment minimums
Initial investment**$1,000,000
Subsequent InvestmentsNo minimum

**In the aggregate across all Portfolios of Macquarie Institutional Portfolios.

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 (03/31/2019)

as of quarter-end (03/31/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)8.42%-3.46%5.83%1.30%7.69%6.70%12/19/1995
MSCI EAFE Index (Net)9.98%-3.71%7.27%2.33%8.96%n/a
MSCI EAFE Index (Gross)10.13%-3.22%7.80%2.81%9.47%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)8.42%-3.46%5.83%1.30%7.69%6.70%12/19/1995
MSCI EAFE Index (Net)9.98%-3.71%7.27%2.33%8.96%n/a
MSCI EAFE Index (Gross)10.13%-3.22%7.80%2.81%9.47%n/a

Returns for less than one year are not annualized.

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
Gross0.87%
Net0.87%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20198.42%n/an/an/an/a
2018-1.47%-2.31%1.46%-10.16%-12.26%
20178.14%4.16%5.54%2.38%21.70%
20160.63%-0.08%3.46%-0.97%3.02%
20154.72%0.63%-9.94%1.32%-3.84%
20143.70%5.19%-6.47%-5.46%-3.55%
20133.75%1.54%9.31%6.19%22.28%
20126.32%-5.79%4.65%2.85%7.82%
20113.89%3.16%-13.82%3.90%-4.03%
2010-1.36%-13.75%16.38%3.38%2.37%
2009-17.66%21.23%18.13%2.20%20.52%
Portfolio characteristics - as of 03/31/2019
Number of holdings53
Market cap (median) Source: FactSet$29.76 billion
Market cap (weighted average) Source: FactSet$51.09 billion
Portfolio turnover (last fiscal year)20%
Beta, 3 years (relative to MSCI EAFE Index (Net)) (view definition)0.91
Annualized standard deviation, 3 years (view definition)10.14
Top 10 holdings as of 03/31/2019

Holdings are as of the date indicated and subject to change.

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

Holdings based by issuer.

Holding% of portfolio
Enel SpA3.32%
CK Hutchison Holdings Ltd.3.21%
Lloyds Banking Group PLC3.19%
United Overseas Bank Ltd.3.10%
Honda Motor Co. Ltd.3.07%
Telia Co. AB3.04%
Eni SpA2.97%
Royal Dutch Shell PLC2.91%
Takeda Pharmaceutical Co. Ltd.2.85%
GlaxoSmithKline PLC2.76%
Total % Portfolio in Top 10 holdings30.42%

Top 10 countries as of 03/31/2019

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes.

Country% of portfolio
United Kingdom24.0%
Japan21.5%
Germany8.8%
Switzerland6.5%
France6.5%
Italy6.3%
Singapore6.2%
Hong Kong5.9%
Spain5.9%
Sweden3.0%
Distribution history - annual distributions (Original Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20190.0000.000
20180.0000.423
20170.0000.435
20160.0000.380
20150.0000.367
20140.0000.800
20130.0000.450
20120.0000.420
20110.0000.535
20100.0000.406
20090.0000.376

1If a Portfolio makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Portfolio will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Portfolio's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Portfolio (if any).

2Information on return of capital distributions (if any) is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Investment manager

Delaware Management Company, a series of Macquarie Investment Management Business Trust (a Delaware statutory trust).

Sub-advisors

Mondrian Investment Partners Ltd. (Mondrian)

Elizabeth A. Desmond, CFA  

Deputy Chief Executive Officer and Chief Investment Officer, International Equities

Start date on the Fund: November 2014

Years of industry experience: 31

(View bio)


Nigel A. Bliss 

Senior Portfolio Manager

Start date on the Fund: October 2002

Years of industry experience: 25

(View bio)


Zsolt Mester, CFA

Portfolio Manager — Mondrian Investment Partners Ltd.

Start date on the Fund: February 2019

Years of industry experience: 8

(View bio)


The table below describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Purchase reimbursement feesnone
Redemption reimbursement feesnone
Annual portfolio operating expenses
Management fees0.75%
Distribution and service (12b-1) feesnone
Other expenses0.12%
Total annual portfolio operating expenses0.87%
Fee waivers and expense reimbursementsnone
Total annual portfolio operating expenses after fee waivers and expense reimbursements0.87%

Carefully consider the Portfolio's investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Portfolio's prospectus and, if available, its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 231-8002. Investors should read the prospectus, and, if available, the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

If and when the Portfolio invests in forward foreign currency contracts or use other investments to hedge against currency risks, the Portfolio will be subject to special risks, including counterparty risk.

From time to time, the Portfolio may invest up to 30% of its net assets in securities of issuers in the commercial banking industry; to the extent that the Portfolio invests 30% of its net assets in such securities, it may be slightly more sensitive to movement in the commercial banking industry.

All third-party marks cited are the property of their respective owners.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 04/18/2019)

Original ClassPriceNet change
NAV$14.22-0.11
Max offer price$14.22n/a

Total net assets (as of 03/31/2019)

$425.4 million all share classes

Lipper ranking (as of 03/31/2019)

YTD ranking8 / 40
1 year2 / 36
3 years8 / 30
5 years2 / 29
10 years7 / 25
Lipper classificationInternational Large-Cap Value

(View Lipper disclosure)

Benchmark, peer group

MSCI EAFE (Europe, Australasia, Far East) Index (view definition)

Lipper International Large-Cap Value Funds Average (view definition)

Additional information