Delaware Value® Fund


Delaware Value® Fund seeks long-term capital appreciation.


The Fund invests in large-capitalization companies, seeking consistent long-term performance. The Fund follows a traditional value-oriented investment philosophy using a research-intensive approach.

Fund information
Inception date09/15/1998
Dividends paid (if any)Quarterly
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)11.60%25.18%22.74%18.24%9.01%7.75%09/15/1998
Max offer price5.21%18.00%20.34%16.85%8.37%7.35%
Russell 1000 Value Index10.35%24.43%21.57%16.62%8.23%n/a
Average annual total return as of quarter-end (06/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)5.51%8.38%23.86%17.86%19.85%8.54%7.64%09/15/1998
Max offer price-0.57%2.18%16.71%15.55%18.45%7.89%7.24%
Russell 1000 Value Index5.10%8.28%23.81%16.92%19.23%8.03%n/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.

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
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
Portfolio characteristics - as of 08/31/2014
Share assets$2071.7 million
Number of holdings32
Market cap (median)$42.48 billion
Market cap (weighted average)$79.83 billion
Portfolio turnover (last fiscal year)6%
Beta - (relative to Russell 1000 Value Index) (view definition)0.80
Annualized standard deviation, 3 years (view definition)9.98
Portfolio composition as of 08/31/2014Total may not equal 100% due to rounding.
Domestic equities95.9%
Cash and cash equivalents4.1%
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
Intel Corp.3.4%
Broadcom Corp.3.3%
Lowe's Cos. Inc.3.1%
Xerox Corp.3.1%
Kraft Foods Group Inc.3.1%
Raytheon Co.3.0%
Marathon Oil Corp.3.0%
Allstate Corp.3.0%
Halliburton Co.3.0%
Edison International3.0%
Total % Portfolio in Top 10 holdings31.0%

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
Health Care17.7%
Information Technology12.8%
Consumer Staples11.9%
Consumer Discretionary6.0%
Telecommunication Services5.9%
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.

Ty Nutt

Ty Nutt  

Senior Vice President, Senior Portfolio Manager, Team Leader

Start date on the Fund: July 2004

Years of industry experience: 31

(View bio)

Anthony Lombardi

Anthony A. Lombardi, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: July 2004

Years of industry experience: 25

(View bio)

Bob Vogel

Robert A. Vogel Jr., CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: July 2004

Years of industry experience: 22

(View bio)

Nik Lalvani

Nikhil G. Lalvani, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: October 2006

Years of industry experience: 17

(View bio)

Kristen Bartholdson

Kristen E. Bartholdson 

Vice President, Senior Portfolio Manager

Start date on the Fund: December 2008

Years of industry experience: 14

(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 (SAI) under the section entitled "Purchasing Shares."

The table below 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 fees0.57%
Distribution and service (12b-1) fees0.25%
Other expenses0.20%
Total annual fund operating expenses1.02%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements1.02%

1The Fund's Distributor, Delaware Distributors, L.P. (Distributor) has contracted to limit the Fund's Class B shares' 12b-1 fee to no more than 0.25% of average daily net assets from Nov. 1, 2013 through March 30, 2015. This waiver may only be terminated by agreement of the Distributor and the Fund. Additionally, the Fund's Class A shares are subject to a blended 12b-1 fee of 0.10% on all shares acquired prior to May 2, 1994, and 0.25% on all shares acquired on or after May 2, 1994. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board.

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Delaware Value® Fund Quarterly commentary June 30, 2014 Class A (DDVAX)

Within the Fund

For the second quarter of 2014, Delaware Value Fund (Class A shares at net asset value) posted a positive return and modestly outperformed its benchmark, the Russell 1000® Value Index. Relative performance benefited from stock selection and, to a larger extent, positive sector allocation results.

The largest contributions to relative performance came from investments in information technology and financials. The portfolio benefited from stock selection in both sectors, as well as an overweight in technology and an underweight in financials. Semiconductor manufacturers Intel and Broadcom were the Fund’s top contributors, advancing 20.7% and 18.4%, respectively. In mid-June, Intel raised its forecast for both revenue and profit margin for the current quarter and year. Earlier in the month, Broadcom announced that it was exploring strategic alternatives for its cellular baseband business, an area that had dragged down overall earnings per share by approximately 25% as recently as last year. In financials, Bank of New York Mellon led the way, up 6.7%. Its shares got a boost when activist investor Nelson Peltz announced that his investment partnership, Trian Fund Management, had amassed a 2.5% stake in the company. Elsewhere in the portfolio, energy exploration and production company ConocoPhillips was a top performer, gaining 22.9%. Sales and profits for last quarter came in ahead of expectations as the company benefited from increased production, higher prices, and expanding margins.

The largest drags on relative returns came in the healthcare and industrials sectors. Stock selection was the main source of negative attribution in each. The Fund’s six healthcare holdings had a combined return of 0.5% versus 3.4% for those in the benchmark. Shares of pharmaceutical maker Pfizer fared worst with a drop of -6.8%. In addition to reporting weaker-than-expected revenue for last quarter, Pfizer’s failed bid for U.K.-based AstraZeneca created some uncertainty around its long-range strategic plans. In industrials, defense contractors Raytheon and Northrop Grumman posted disappointing returns (-6.0% and -2.5%, respectively). Concerns about the effect of Pentagon budget constraints on several large programs put pressure on defense stocks, generally. Also, Raytheon reported a modest decrease in sales and did not raise its full-year guidance, which the market viewed as disappointing. Another weak performer in the portfolio was diversified specialty chemical company DuPont, which declined -1.8%. Near the end of the quarter, DuPont reduced earnings guidance for the year citing lower expected sales in its agricultural segment.

There were no full-position sales or purchases in the portfolio during the second quarter.


After a period of notable resilience for stocks, our three- to five-year view is for below-average market gains. That’s not to say we’re bearish on equities. For long-term investors, we think stocks of higher-quality U.S. companies, trading at reasonable prices, have the potential to provide attractive returns relative to other investments. Near-term, things appear more uncertain to us. The U.S. market looks fully valued across numerous measures including book value, cash flow, earnings, and sales, but valuations are not at extreme levels. It’s been more than 1,000 days since the S&P 500® Index has had a correction of at least 10%, the 5th longest stretch on record (source: Leuthold Group). However, inflation and interest rates remain very low, as does market volatility, while profit margins and investor sentiment are near peak levels. It occurs to us that all of these things (inflation, interest rates, volatility, profits, and investor sentiment) tend to move back toward their averages over time. The question is when. The economy appears to be improving, albeit slowly. As this continues, companies may increase their outlays for capital expenditures and wages, which could put a dent in profit margins and stock buybacks — two strong supports in the current market.

Our more cautious near-term view is reflected in the Fund’s positioning — overweights in traditionally defensive sectors (where valuations remain attractive) and a greater-than-usual emphasis on quality (that is, balance sheet strength, diversified sources of revenue, more predictable cash flows, and attractive dividends). In a stock market that’s risen a cumulative 224% from the March 2009 bottom (S&P 500 Index total return through the second quarter of 2014), finding stocks that meet our criteria for quality and cheapness has become increasingly difficult. This is where all of our energies are focused right now as we continually strive to maintain a “margin of safety” in the portfolio. 

The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the U.S. stock market.


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.

Holding a relatively concentrated portfolio of a limited number of securities may increase risk because each investment has a greater effect on the Fund’s overall performance than would be the case for a more diversified fund.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 09/22/2014)

Class APriceNet changeYTD
Max offer price$19.07n/an/a

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

$5.8 billion all share classes

Overall Morningstar RatingTM

Load waived

With load

Class A shares (as of 08/31/2014)

Load waivedWith loadNo. of funds
3 Yrs541086
5 Yrs55958
10 Yrs54630
Morningstar categoryLarge Value

(View Morningstar disclosure)

Lipper ranking (as of 08/31/2014)

YTD ranking21 / 503
1 year70 / 490
3 years28 / 430
5 years8 / 381
10 years29 / 252
Lipper classificationLarge-Cap Value Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 1000® Value Index (view)

Lipper Large-Cap Value Funds Average (view)

Additional information