2013 Lipper Awards
Delaware does it again
Scott Coleman of Delaware Investments on how the fund company won Lipper's small fund company of the year award for the second time in three years.
We think the Multi-boutique Structure Delaware is very unique in the aspect that it allows each one of our teams to operate independently and we feel it offers the best of both worlds, where the team CIOs get to operate their own business and focus all their time and energy on delivering alpha or solid performance for our clients. Whereas the platform of Delaware that supports the Multi-boutique Structure handles all of the more mundane task that are essential to running a business likely going operations, marketing distribution, that the portfolio managers don't necessarily have to pay attention to as if they were running their own firm. So, as a result is that we're able to recruit very talented PMs who enjoy the structure, enjoy the independence, enjoy the autonomy and it provides an environment for them to really focus on the portfolios that they manage and deliver alpha to our clients. At Delaware, our investment philosophy is long-term oriented and we strive to achieve superior long term results for our clients. The philosophy of Delaware also encompasses we're strong believers in active management. So, each one of our teams builds our portfolio from the bottom up. Research is a very active part of the process, which may lead to some short-term volatility. Our equity teams manage portfolios in a very concentrated fashion. Over the long-term as exhibited by the performance and the risk adjusted performance, we have superior results, but year to year that may result in some volatility. We don't necessarily do anything to fix that or to change it. Again, our teams operate independently and autonomously. We have strong conviction and philosophy in the process that they use to build our client portfolios. We do have a chief investment officer for both equity and fixed income that provides over site to the boutiques. They don't tell the portfolio managers what to do or how to invest but they do monitor the risk positions and reflect that back to the portfolio managers. But we're long term investors and I think our results speak for themselves in turning both our absolute and risk adjusted basics. On the equity portfolio's Delaware managers, typically they could be anywhere from 30 to 50, perhaps 60 positions in the portfolios and across the span of equity portfolios that typically falls into a concentrated description and again, this falls back on our belief and active management and we feel that with our research intensive process in our stock picking approach that to deliver the best ideas to the client that a smaller rather than larger number securities will accomplish that goal. So, even though Delaware is based in Philadelphia that we do provide global and international exposure in our portfolios, we have an emerging markets product managed by [unk] Chan who is actually based in Boston. We have an international value product investing in non-U. S. securities of the value nature. We have an international bond fund on the fixed income side. So, we do have capabilities to invest domestically within North America and outside the U.S. For advisers looking at Delaware in terms of what distinguishes us from other fund companies, I think that Delaware has a very long history. We've been in the business since 1929. We have a demonstrated track record of superior long term risk adjusted performance. We have a structure at the firm that attracts and retains very talented portfolio managers and we'd like to think that we deliver excellent client service be it a large institution to find benefit plan or somebody that is invested in one of our mutual funds. We have excellent relationships with advisers and institutional consultants and I think Delaware is well-known for providing that client service in combination with the superior long-term or suggested performance as well.
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