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

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 (11/30/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)13.12%15.26%20.95%17.36%8.72%7.92%09/15/1998
Russell 1000 Value Index12.76%15.62%21.45%15.69%7.59%n/a
Average annual total return as of quarter-end (09/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.74%10.33%20.83%24.40%17.96%8.88%7.83%09/15/1998
Russell 1000 Value Index-0.19%8.07%18.89%23.93%15.26%7.84%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 11/30/2014
Share assets$3946.6 million
Number of holdings32
Market cap (median)$37.66 billion
Market cap (weighted average)$79.75 billion
Portfolio turnover (last fiscal year)6%
Beta - (relative to Russell 1000 Value Index) (view definition)0.82
Annualized standard deviation, 3 years (view definition)8.02
Portfolio composition as of 11/30/2014Total may not equal 100% due to rounding.
Domestic equities95.8%
Cash and cash equivalents4.2%
Top 10 holdings as of 11/30/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Lowe's Cos. Inc.3.2%
Johnson Controls Inc.3.2%
Intel Corp.3.2%
Archer-Daniels-Midland Co.3.2%
Mondelez International Inc.3.1%
Cisco Systems Inc.3.1%
Broadcom Corp.3.1%
Johnson & Johnson3.1%
Allstate Corp.3.0%
Baxter International Inc.3.0%
Total % Portfolio in Top 10 holdings31.2%

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

Top sectors as of 11/30/2014
List excludes cash and cash equivalents.
Sector% of portfolio
Health Care18.2%
Information Technology12.4%
Consumer Staples12.3%
Consumer Discretionary6.4%
Telecommunication Services6.0%
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. 

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)

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 fees0.57%
Distribution and service (12b-1) feesnone
Other expenses0.20%
Total annual fund operating expenses0.77%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.77%

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

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 September 30, 2014

Within the Fund

For the third quarter of 2014, Delaware Value Fund (Class A and Institutional Class shares at net asset value) posted a positive return and outperformed its benchmark, the Russell 1000® Value Index. Relative performance was driven by stock selection, which accounted for approximately 90% of positive attribution.

The largest contributions to relative performance came from investments in industrials and information technology. Stock selection in both sectors, as well as an overweight in technology, had positive effects. As a group, the portfolio’s three industrial stocks rose 9.6%, led by defense contractors Northrop Grumman (up 10.8%) and Raytheon (up 10.7%), compared to a return of -2.9% for the sector in the benchmark. In general, defense stocks benefited from expanding military activity in the Middle East, and from a rotation out of more-cyclical industrial companies, whose revenues have come under pressure because of slowing global growth. In technology, semiconductor manufacturer Intel led with a 13.5% increase. In July, the company reported second-quarter results that were ahead of levels it preannounced in June, which had also lifted the shares. Elsewhere in the portfolio, grain processing and servicing company Archer-Daniels-Midland was the top performer, up 16.4%. The company has been benefiting from abundant crop supplies as well as restructuring and cost-saving initiatives.

The largest drag on relative returns came from investments in financials. Shares of regional bank BB&T dropped -5.0% after the company announced second-quarter results that missed expectations. Loan growth was better than expected but net interest income remained under pressure and the bank’s progress on expense reductions has been slow. Energy was the next-weakest sector from an attribution standpoint. Each of the Fund’s holdings had a negative return owing to a stronger U.S. dollar, rising supply in the United States, and concerns about softening global demand. Exploration and production company ConocoPhillips fared the worst, declining -10.0%. Other weak performers in the portfolio included Johnson Controls (down -­11.5%), a manufacturer of automotive interiors, batteries, and building control systems, and snack food maker Mondelez International (down -8.5%). Both companies have been contending with slowing product demand, primarily in emerging markets, where each has meaningful exposure.

In late August, we completed the sale of Motorola Solutions (MSI), a manufacturer of two-way radios, mobile computers, barcode scanners, and mobile broadband devices for government and public safety agencies as well as businesses. The Fund’s holding in MSI dated back to early January 2011 when Motorola was split into two companies: Motorola Solutions and Motorola Mobility (MMI). MMI retained Motorola’s mobile device and home set-top box businesses. The Fund’s position in the parent company was first initiated in 2007.

Following the split, we decided to sell MMI and round up MSI to a full 3% position. We viewed MSI as a more attractive, long-term investment opportunity given its potential for steady revenue growth; sustainable cash flow generation and attractive free cash flow yield; favorable capital management prospects, which could lead to dividend payments and share repurchases; and market leadership. The company initiated a dividend in mid-2011. Shares outstanding were reduced by approximately 20% during our holding period.

Our sale of MSI began in early May 2014. At the time, the stock was at its price target, scored in the fifth-cheapest decile in our opportunity screen, and was trading at elevated levels across several valuation measures. Beyond valuation, there were several other developments at MSI, related more to company quality, which led us to believe a sale was the right course of action. The company had been benefiting from an artificially low tax rate, which was set to rise. Sales were falling and earnings-per-share targets were missed. The more stable government segment (approximately three-quarters of the overall business) was experiencing margin declines. In April 2014, management announced the sale of the smaller enterprise business, despite having indicated in late 2013 its intention to keep the company whole. And, after the sale of the enterprise segment, the remaining business would be more leveraged and MSI’s market cap would be reduced to approximately $10 billion.


The fourth quarter, especially the latter part, has historically been a good one for equities. Given the improving trajectory of the U.S. economy and lack of favorable investment alternatives, we believe stocks could gain strength and move higher from here. Seasonality aside, some of the risks currently facing the market could continue to dampen investor enthusiasm and keep stock prices in check. These risks include the end of quantitative-easing stimulus, the likelihood that the U.S. Federal Reserve moves short-term interest rates up from zero next year, slowing economic activity in some key regions outside the U.S., and rising geopolitical conflicts. Also, it’s worth noting that economic activity and stock market performance have the potential to take divergent paths over shorter time frames.

Longer term, it’s hard for us to envision robust returns for stocks because of the broad market’s extraordinary rise over the last five years or so and, more importantly, its full valuation. Given the importance of starting valuation to long-term equity returns, we foresee mid-single-digit annualized total returns looking out 5 to 10 years — a level below historical averages, but still potentially attractive given the current low-interest-rate environment around much of the globe. Our concerns about equity valuations and potential market risks mean that we remain defensively oriented with a focus on what we view as higher-quality businesses with relatively low price multiples and attractive risk-return profiles.


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 800 362-7500. 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 12/26/2014)

Institutional ClassPriceNet changeYTD
Max offer price$18.48n/an/a

Total net assets (as of 11/30/2014)

$6.8 billion all share classes

Lipper ranking (as of 11/30/2014)

YTD ranking39 / 498
1 year65 / 494
3 years133 / 432
5 years7 / 384
10 years13 / 269
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