Delaware Mid Cap Value Fund


 Delaware Mid Cap Value Fund seeks capital appreciation. 


The Fund invests primarily in investments of medium-sized companies whose stock prices appear low relative to their underlying value or future potential. 

Fund information
Inception date02/01/2008
Dividends paid (if any)Annually
Capital gains paid (if any)December
Fund identifiers
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
Payroll DeductionYes

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 (08/31/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)8.50%24.36%16.97%15.85%n/a7.95%02/01/2008
Max offer price2.24%17.18%14.68%14.48%n/a6.98%
Russell Midcap Value Index12.48%27.21%22.34%19.45%n/an/a
Average annual total return as of quarter-end (06/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)4.45%7.82%25.09%11.91%18.56%n/a8.06%02/01/2008
Max offer price-1.55%1.60%17.89%9.72%17.17%n/a7.06%
Russell Midcap Value Index5.63%11.14%27.76%17.56%22.97%n/an/a

Returns for less than one year are not annualized.

Class A shares have a maximum up-front sales charge of 5.75% and are subject to an annual distribution fee.

Prior to July 31, 2008, the Fund had not engaged in a broad distribution of its shares and had been subject to limited redemption requests. The returns reflect expense limitations that were in effect during certain periods and which may have been lower than the Fund’s current expenses. The returns would have been lower without expense limitations.

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

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Feb. 27, 2014 through Feb. 27, 2015. Please see the fee table in the Fund’s prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 08/31/2014
Share assets$3.7 million
Number of holdings81
Market cap (median)$7.71 billion
Market cap (weighted average)$12.05 billion
Portfolio turnover (last fiscal year)22%
Beta - (relative to Russell Midcap Value Index) (view definition)1.11
Annualized standard deviation, 3 years (view definition)14.93
Portfolio composition as of 08/31/2014Total may not equal 100% due to rounding.
Domestic equities94.2%
Cash and cash equivalents4.8%
International equities & depository receipts1.0%
Top 10 holdings as of 08/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Whiting Petroleum Corp.2.8%
United Rentals Inc.2.7%
East West Bancorp Inc.2.4%
American Financial Group Inc.2.3%
Comerica Inc.2.2%
Celanese Corp.2.2%
Torchmark Corp.2.1%
Newfield Exploration Co.2.0%
Cytec Industries Inc.1.8%
Superior Energy Services Inc.1.7%
Total % Portfolio in Top 10 holdings22.2%

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

Top sectors as of 08/31/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Financial Services20.0%
Basic Industry9.4%
Capital Spending8.0%
Health Care8.0%
Consumer Services7.7%
Consumer Cyclical4.6%
Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment

1If a Fund 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 Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund'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 Fund (if any).

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

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

Chris Beck

Christopher S. Beck, CFA

Senior Vice President, Chief Investment Officer — Small-Cap Value / Mid-Cap Value Equity

Start date on the Fund: February 2008

Years of industry experience: 33

(View bio)

Steve Catricks

Steven G. Catricks, CFA

Vice President, Portfolio Manager, Equity Analyst

Start date on the Fund: July 2012

Years of industry experience: 15

(View bio)

Kent Madden

Kent P. Madden, CFA

Vice President, Portfolio Manager, Equity Analyst

Start date on the Fund: July 2012

Years of industry experience: 18

(View bio)

Kelly McKee

Kelley A. McKee, CFA

Vice President, Portfolio Manager, Equity Analyst

Start date on the Fund: July 2012

Years of industry experience: 12

(View bio)

You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Delaware Investments® Funds. More information about these and other discounts is available from your financial advisor, in the Fund's prospectus under the section entitled "About your account," and in the Fund's statement of additional information under the section entitled "Purchasing Shares."

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

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price5.75%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.75%
Distribution and service (12b-1) fees0.25%
Other expenses1.22%
Total annual fund operating expenses2.22%
Fee waivers and expense reimbursements(0.97%)
Total annual fund operating expenses after fee waivers and expense reimbursements1.25%

1The Fund's investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, taxes, interest, short sale and dividend interest expenses, brokerage fees, certain insurance costs, acquired fund fees and expenses, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent annual fund operating expenses from exceeding 1.00% of the Fund's average daily net assets from Feb. 27, 2014 through Feb. 27, 2015. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

View printable commentary E-mail this page

This commentary is currently not available. Please check back later.

Delaware Mid Cap Value Fund Quarterly commentary June 30, 2014 Class A (DLMAX)

Within the Fund

Delaware Mid Cap Value Fund (Class A shares at net asset value) posted a positive return but underperformed its benchmark, the Russell Midcap® Value Index, during the second quarter of 2014.

Stock selection in the energy, consumer cyclical, and basic industry sectors contributed the most to the Fund’s performance. While all of the sectors in the Fund posted positive returns for the quarter, stock selection lagged that of the Index in the technology, utilities, and financial services sectors.

Among the stocks that outperformed during the quarter was Newfield Exploration, an energy company with primary operations in the Rocky Mountain and Texas regions. The stock increased more than 40% during the quarter as production increased above expectations and the company’s newer discoveries delivered solid results. We maintained the Fund’s position as the company continues to trade at a valuation discount to its peers.

In the basic industry sector, Celanese, a chemical and specialty materials company, was a top contributor to Fund performance. The stock appreciated more than 15% during the quarter after the company’s first quarter earnings report showed solid operational performance and progress towards cost reduction goals. The company also experienced volume improvement in its automotive and industrial end markets.

Shares of D.R. Horton, the nation’s largest homebuilder, advanced more than 10% during the quarter. The company reported solid earnings as well as strong order growth, which contributed to the Fund’s gains. In addition, after a period of sluggish industry volumes, there are signs that overall homebuilding sales are starting to accelerate. We maintained the Fund’s position in D.R. Horton as we continue to like the company’s valuation and future business prospects.

On the negative side, shares of Raymond James Financial declined nearly 10% during the quarter as commissions were flat and mergers-and-acquisition activity had a negative comparison. We maintained the Fund’s position as we believe the stock is reasonably priced and we anticipate that the environment for capital markets activity is likely to improve.

Avnet is a distributor of computer products, semiconductors, and electromechanical components. The stock declined nearly 5% during the quarter as the company reported sales and earnings at the low end of company guidance. This weak performance was due to a decline in the company’s Technology Solutions services sales. Given the solid performance in the prior quarter for Avnet Technology Solutions and a product refresh in storage, we believe the shortfall is a temporary issue and therefore we continue to hold shares of Avnet.

In the capital spending sector, Chicago Bridge and Iron, an engineering and construction firm focused primarily on the energy sector, declined more than 20% during the quarter. The company reported an earnings miss from underutilized assets and higher selling, general, and administrative expenses. The company also had some negative press later in the quarter. We maintained the Fund’s position as we believe the company is reasonably priced and it continues to grow backlog with large energy project wins capitalizing on the strong U.S. energy cycle.


We continue to believe that the outlook for the economy and domestic equities is favorable. We believe that the U.S. economy will continue to grow at a moderate pace as employment trends, manufacturing data, consumer confidence levels, and bank lending gradually improve. Additionally, we continue to see the benefits of an accommodative Federal Reserve policy on equities.

The Fund’s positioning remains largely the same with overweights in the capital spending, basic industry, and consumer services sectors. We continue to maintain our underweights in the traditionally defensive sectors of the market: real estate investment trusts (REITs) and utilities.

So far this year, we have seen some signs that investor sentiment is shifting from lower-quality equities to higher-quality equities. We believe that this type of environment offers the potential for outperformance from the types of stocks that we focus our efforts on — those that have the potential to generate strong free cash flow, have a healthy balance sheet, and are likely to deploy their cash in shareholder-friendly ways such as dividends or share repurchases.


The views expressed represent the Manager's assessment of the Fund and market environment as of the date indicated, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Information is as of the date indicated and subject to change.

Document must be used in its entirety.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 09/19/2014)

Class APriceNet changeYTD
Max offer price$6.67n/an/a

Total net assets (as of 08/31/2014)

$5.6 million all share classes

Lipper ranking (as of 08/31/2014)

YTD ranking124 / 372
1 year105 / 366
3 years254 / 321
5 years217 / 283
10 yearsn/a
Lipper classificationMid-Cap Core Funds

(View Lipper disclosure)

Benchmark, peer group

Russell Midcap® Value Index (view)

Lipper Mid-Cap Core Funds Average (view)

Additional information