Delaware VIP Small Cap Value Service Class
Objective And StrategyObjective
Seeks capital appreciation.
The Series invests primarily in investments of small companies whose stock prices, in the portfolio managers' opinion, appear low relative to their underlying value or future potential. Among other factors, the Series' investment manager, Delaware Management Company (Manager), considers the financial strength of a company, its management, the prospects for its industry, and any anticipated changes within the company that might suggest a more favorable outlook going forward. The Manager focuses on free cash flow in its individual stock selection, seeking companies that the Manager believes have a sustainable ability to buy back shares, lower debt, and/or increase or initiate dividends. Under normal circumstances, at least 80% of the Series' net assets, plus the amount of any borrowings for investment purposes, will be in investments of small-capitalization companies (80% policy). The Series considers small-capitalization companies to be companies with a market capitalization generally less than 3.5 times the dollar-weighted, median market capitalization of the Russell 2000 ® Index at the time of purchase. The Series may invest up to 15% of its net assets in real estate investment trusts (REITs). The Series' 80% policy is non-fundamental and may be changed without shareholder approval. Series shareholders would be given at least 60 days' notice prior to any such change.