Delaware Group Equity Funds III
Delaware Technology and Innovation Fund
Supplement to the Statement of Additional Information
The following supplements the Redemption and Exchange
section of the Statement of Additional Information:
Systematic Withdrawal Plans
Shareholders of Class A Shares, Class B Shares and
Class C Shares of the Delaware Technology and Innovation
Fund who own or purchase $5,000 or more of shares at the
offering price, or net asset value, as applicable, for which
certificates have not been issued may establish a Systematic
Withdrawal Plan for monthly withdrawals of $25 or more, or
quarterly withdrawals of $75 or more, although the Fund does
not recommend any specific amount of withdrawal. This is
particularly useful to shareholders living on fixed incomes,
since it can provide them with a stable supplemental amount.
This $5,000 minimum does not apply for the Fund's prototype
retirement plans. Shares purchased with the initial
investment and through reinvestment of cash dividends and
realized securities profits distributions will be credited
to the shareholder's account and sufficient full and
fractional shares will be redeemed at the net asset value
calculated on the third business day preceding the mailing
date.
Checks are dated either the 1st or the 15th of the
month, as selected by the shareholder (unless such date
falls on a holiday or a weekend), and are normally mailed
within two business days. Both ordinary income dividends
and realized securities profits distributions will be
automatically reinvested in additional shares of the Class
at net asset value. This plan is not recommended for all
investors and should be started only after careful
consideration of its operation and effect upon the
investor's savings and investment program. To the extent
that withdrawal payments from the plan exceed any dividends
and/or realized securities profits distributions paid on
shares held under the plan, the withdrawal payments will
represent a return of capital, and the share balance may in
time be depleted, particularly in a declining market.
Shareholders should not purchase additional shares while
participating in a Systematic Withdrawal Plan.
The sale of shares for withdrawal payments constitutes
a taxable event and a shareholder may incur a capital gain
or loss for federal income tax purposes. This gain or loss
may be long-term or short-term depending on the holding
period for the specific shares liquidated. Premature
withdrawals from retirement plans may have adverse tax
consequences.
Withdrawals under this plan made concurrently with the
purchases of additional shares may be disadvantageous to the
shareholder. Purchases of Class A Shares through a periodic
investment program in a fund managed by the Manager must be
terminated before a Systematic Withdrawal Plan with respect
to such shares can take effect, except if the shareholder is
Delaware Investments funds which do not carry a sales
charge. Redemptions of Class A Shares pursuant to a
Systematic Withdrawal Plan may be subject to a Limited CDSC
if the purchase was made at net asset value and a dealer's
commission has been paid on that purchase. The applicable
Limited CDSC for Class A Shares and CDSC for Class B and C
Shares redeemed via a Systematic Withdrawal Plan will be
waived if the annual amount withdrawn in each year is less
than 12% of the account balance on the date that the Plan is
established. If the annual amount withdrawn in any year
exceeds 12% of the account balance on the date that the
Systematic Withdrawal Plan is established, all redemptions
under the Plan will be subjected to the applicable
contingent deferred sales charge, including an assessment
for previously redeemed amounts under the Plan. Whether a
waiver of the contingent deferred sales charge is available
or not, the first shares to be redeemed for each Systematic
Withdrawal Plan payment will be those not subject to a
contingent deferred sales charge because they have either
satisfied the required holding period or were acquired
through the reinvestment of distributions.
An investor wishing to start a Systematic Withdrawal
Plan must complete an authorization form. If the recipient
of Systematic Withdrawal Plan payments is other than the
registered shareholder, the shareholder's signature on this
authorization must be guaranteed. Each signature guarantee
must be supplied by an eligible guarantor institution. The
Fund reserves the right to reject a signature guarantee
supplied by an eligible institution based on its
creditworthiness. This plan may be terminated by the
shareholder or the Transfer Agent at any time by giving
written notice.
Systematic Withdrawal Plan payments are normally made
by check. In the alternative, you may elect to have your
payments transferred from your Fund account to your
predesignated bank account through the MoneyLine (SM) Direct
Deposit Service. Your funds will normally be credited to
your bank account up to four business days after the payment
date. There are no separate fees for this redemption
method. It may take up to four business days for the
transactions to be completed. You can initiate this service
by completing an Account Services form. If your name and
address are not identical to the name and address on your
Fund account, you must have your signature guaranteed. The
Fund does not charge a fee for this service; however, your
bank may charge a fee. This service is not available for
retirement plans.
Shareholders should consult with their financial
advisers to determine whether a Systematic Withdrawal Plan
would be suitable for them.
The following supplements the Waivers of Contingent
Deferred Sales Charge section under Redemption and Exchange
for Delaware Technology and Innovation Fund:
In addition, the applicable Limited CDSC for Class A
Shares and CDSC for Class B and C Shares redeemed via a
Systematic Withdrawal Plan will be waived if the annual
amount withdrawn in each year is less than 12% of the
account balance on the date that the Plan is established.
See Systematic Withdrawal Plans, above.
