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)November or December
Fund identifiers

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 (10/31/2015)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.80%3.11%15.97%15.17%8.07%7.56%09/15/1998
Russell 1000 Value Index-2.09%0.53%14.52%13.26%6.75%n/a
Average annual total return as of quarter-end (09/30/2015)
Last quarter1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-7.28%-4.33%12.60%14.11%6.87%7.08%09/15/1998
Russell 1000 Value Index-8.39%-4.42%11.59%12.29%5.71%n/a

Returns for less than one year are not annualized.

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

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Portfolio characteristics - as of 10/31/2015
Number of holdings33
Market cap (median)$45.52 billion
Market cap (weighted average)$77.73 billion
Portfolio turnover (last fiscal year)7%
Beta, 3 years (relative to Russell 1000 Value Index) (view definition)0.91
Annualized standard deviation, 3 years (view definition)10.16
Portfolio composition as of 10/31/2015Total may not equal 100% due to rounding.
Domestic equities98.8%
Cash and cash equivalents1.2%
Top 10 holdings as of 10/31/2015
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
EI du Pont de Nemours & Co.3.6%
Intel Corp.3.4%
Northrop Grumman Corp.3.3%
Raytheon Co.3.3%
Mondelez International Inc.3.3%
Waste Management Inc.3.2%
Merck & Co. Inc.3.2%
Lowe's Cos. Inc.3.2%
Express Scripts Holding Co.3.1%
Quest Diagnostics Inc.3.1%
Total % Portfolio in Top 10 holdings32.7%

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

Top sectors as of 10/31/2015
List excludes cash and cash equivalents.
Sector% of portfolio
Consumer staples12.3%
Information technology12.0%
Consumer discretionary6.3%
Telecommunication services6.1%
Distribution history - annual distributions (Institutional Class)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 (if any) is only provided from June 1, 2014 onward.

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

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

The process is our star

The Large-Cap Value team at Delaware Investments discusses why a fundamental research-driven process, with roots going back to the 1970s, is the true star of the team.

Watch the video

Read video transcript

Ty Nutt

Ty Nutt  

Senior Vice President, Senior Portfolio Manager, Team Leader

Start date on the Fund: July 2004

Years of industry experience: 32

(View bio)

Kristen Bartholdson

Kristen E. Bartholdson 

Vice President, Senior Portfolio Manager

Start date on the Fund: December 2008

Years of industry experience: 15

(View bio)

Nik Lalvani

Nikhil G. Lalvani, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: October 2006

Years of industry experience: 18

(View bio)

Anthony Lombardi

Anthony A. Lombardi, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: July 2004

Years of industry experience: 26

(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: 23

(View bio)

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.54%
Distribution and service (12b-1) feesnone
Other expenses0.20%
Total annual fund operating expenses0.74%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.74%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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Delaware Value® Fund Quarterly commentary September 30, 2015

Within the Fund

For the third quarter of 2015, Delaware Value Fund (Institutional Class shares and Class A shares at net asset value) posted a negative return but outperformed its benchmark, the Russell 1000® Value Index. At the portfolio level, stock selection accounted for all of the outperformance.

The Fund’s investments in financials and energy caused the largest drags on relative returns. Its four financial holdings trailed those in the benchmark, -8.6% versus -6.4%. Regional bank BB&T led the sector lower with a decline of -11.1%. Like other banks involved in traditional spread lending, BB&T’s net interest margin has remained under pressure because of ultra-low interest rates. We continue to believe that the market is overly discounting the company’s long-term prospects. Shares of property casualty insurer Allstate also struggled, falling -9.8%. The company reported weaker-than-expected earnings for the second quarter due to an increase in auto claims frequency, which sent the stock down -10% the day of the announcement. Longer term, this experience should lead to improved pricing and better underwriting in the company’s auto business. In the energy sector, the Fund’s five stocks dropped -21.6%, on average, versus -17.8% for those in the benchmark. Brent crude oil fell -22% in the third quarter, from $63 to $49 a barrel. Exploration and production company Marathon Oil was the weakest holding in the Fund, down -41.3%. The company has the highest oil sensitivity and highest percentage of North American exposure out of the Fund’s energy holdings. Also, investors’ concerns about the potential for more dividend cuts in the energy sector appear to have negatively affected the stock. We continue to watch Marathon closely for signs of lasting financial stress. Much will depend on the path of oil prices.

Investments in industrials and information technology contributed the most to relative performance. The Fund’s three industrial stocks rose 9.2%, on average, compared to a decline of -9.4% for the sector in the benchmark. The less-cyclical holdings (two defense contractors and a commercial services company), benefited as concerns over slowing global economic activity dragged down much of the sector, including stocks in the machinery and electrical equipment industries. Raytheon was the strongest performer, up 14.2%. The defense company raised its sales guidance and share buyback plan, and expressed greater optimism about the effect of its recent acquisition of Websense, a cybersecurity firm. Waste Management was not far behind with a gain of 8.3%. The company has held firm on pricing and improved its expense management. In technology, the Fund’s four holdings fell -4.3%, on average, versus a decline of -6.3% for technology stocks in the benchmark. Intel was the strongest performer within the sector, posting a -0.1% return. Despite flagging PC sales, recent gross margin trends have been solid and the company has been reducing its capital expenditure budget for the current year. Furthermore, the company’s pending acquisition of Altera, which should enhance its offering in programmable chips, appears to be on track.

There were no full-position sales or purchases during the third quarter. In July, Kraft completed its merger with Heinz to form Kraft Heinz Co. We decided to retain a target weight position in the company, believing it offered an attractive risk-reward opportunity within the consumer staples sector. DuPont completed the spin-off of its performance chemicals business, which became Chemours. This represented a small, 0.15% position in the portfolio, which led us to sell the Fund’s shares and invest the proceeds back into DuPont. Baxter International split into two separate companies of nearly equal size: Baxalta (biopharma) and Baxter (medical devices and infusion therapies). We are nearly finished analyzing the two entities as potential full-position investments. As always, it will depend on our view of each business’ valuation, financial strength, and long-term prospects.


It’s too early to tell if the current downturn will remain a correction or turn into a cyclical bear market. Either path is possible. A common pattern in past market downturns has been sharp declines followed by modest rebounds followed by the testing of prior lows.

Slower economic growth, inflated asset prices, softer corporate revenue and earnings growth, and geopolitical instability are among the downside risks facing stocks. While weakening global economic trends have clearly unnerved investors, the root causes of the slowdown remain somewhat unclear. It’s hard to know for sure, but we suspect excessive debt, unfavorable demographic trends, and ambiguous monetary and fiscal policies may be playing important roles.

For a long time now (years, not months or quarters), our team has positioned the portfolio fairly defensively. We have overweights in naturally defensive sectors like healthcare, staples, and telecommunications. And we have underweights in some of the economically sensitive sectors, like consumer discretionary and financials. The exception — because of our very long term view on global supply and demand — has been energy, where the Fund is overweighted. We’re beginning to see very early signs of a possible bottoming process in crude oil. And we’re doing new fundamental research, based on adjusted crude oil price assumptions, for all of the Fund’s energy holdings.

We’ve emphasized quality, that is, stronger balance sheets and more predictable earnings, believing it could contribute to the defensive character of the portfolio. Naturally, we’ve also continued to insist on companies with low price multiples versus our universe of candidates. Lastly, the Fund’s dividend yield is above that of the Russell 1000 Value Index and well above that of the S&P 500® Index. None of this will guarantee outperformance in a down market, but we hope it has the potential to help.

Document must be used in its entirety.

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.

All third-party marks cited are the property of their respective owners.

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

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 800 362-7500. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Because the Fund expects to hold a concentrated portfolio of a limited number of securities, the Fund's risk is increased because each investment has a greater effect on the Fund's overall performance.

The Funds are distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 11/30/2015)

Institutional ClassPriceNet changeYTD
Max offer price$18.16n/an/a

Total net assets (as of 10/31/2015)

$9.3 billion all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 10/31/2015)
RatingNo. of funds
3 Yrs51197
5 Yrs51055
10 Yrs5742
Morningstar categoryLarge Value

(View Morningstar disclosure)

Lipper ranking (as of 10/31/2015)

YTD ranking34 / 512
1 year40 / 507
3 years32 / 447
5 years4 / 395
10 years14 / 289
Lipper classificationLarge-Cap Value Funds

(View Lipper disclosure)

Benchmark, peer group

Russell 1000® Value Index (view definition)

Lipper Large-Cap Value Funds Average (view definition)

Additional information