Delaware Investments is taking pruning shears to its topiary of funds. Pending shareholder approval, the Philadelphia-based firm intends to merge nine funds and liquidate three.

Delaware is lopping off its Global Equity (DEGAX), Global Bond (DGBAX), and New Pacific Funds (DENPX). The Global Equity Fund is not being merged into the International Equity Fund for "obscure legal reasons," according to Tom Gariepy, spokesperson for Delaware. The latter two suffer from low assets, $3 million and $6 million respectively.

While nine funds are being merged due to lackluster asset gathering, the cleanup operation also removes redundancies such as the US Government Securities Fund (VUSGX), virtually indistinguishable from the American Government Bond Fund it will be swept into.

"We had acquired a company that had fund similar to our American Government Bond Fund (DEGGX)," explained Gariepy. "That was an acquisition a number of years ago."

Better late than never!

Surprisingly enough, the Tax-Efficient Equity Fund (DVXAX), listed in Delaware's "growth of capital" category, will merge into the Devon Fund (DDGAX), a "total return product." Whose cuffs and collar don't match?

"Those funds are relatively close together, in spite of what category those two funds were in," said Gariepy. "Devon is probably more like a growth capital than a total return. I think they're looking at the classifications of a lot of funds. There are a number of funds that we've changed from total return to capital appreciation."

After this flurry of pruning, Delaware may add more funds.

"There is a possibility that we will add more funds as the year progresses," said Gariepy. "You have to have something that interests the public and puts up the numbers." 

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