Delaware Value® Fund

Objective

Delaware Value® Fund seeks long-term capital appreciation.

Strategy

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
NASDAQDDVIX
CUSIP24610C857

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 (05/31/2016)

as of quarter-end (03/31/2016)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)7.92%3.43%11.69%12.90%7.85%7.69%09/15/1998
Russell 1000 Value Index5.39%-0.06%9.23%10.70%6.11%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.69%-0.48%11.06%12.24%7.15%7.41%09/15/1998
Russell 1000 Value Index1.64%-1.54%9.38%10.25%5.72%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
Gross0.72%
Net0.72%
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20161.69%8.98%n/an/an/a
20151.83%-1.67%-7.28%7.33%-0.35%
20142.79%5.51%1.74%3.05%13.69%
201312.24%3.91%4.47%9.52%33.44%
20128.25%-0.42%4.79%1.35%14.48%
20117.86%1.71%-12.91%14.23%9.14%
20103.75%-9.68%12.60%9.96%16.03%
2009-10.67%10.53%11.45%7.03%17.77%
2008-9.70%-5.74%-8.79%-13.55%-32.88%
20070.45%6.44%-2.85%-6.39%-2.77%
20066.33%0.34%8.44%7.07%23.88%

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

Portfolio characteristics - as of 05/31/2016Russell 1000 Value Index
Number of holdings33686
Market cap (median)$45.30 billion$7.44 billion
Market cap (weighted average)$80.47 billion$112.41 billion
Portfolio turnover (last fiscal year)12%n/a
Beta (relative to Russell 1000 Value Index) (view definition)0.91n/a
SEC 30-day yield with waiver (view definition)1.78%
SEC 30-day yield without waiver (view definition)1.78%
Annualized standard deviation, 3 years (view definition)10.79n/a
Portfolio composition as of 05/31/2016Total may not equal 100% due to rounding.
Domestic equities98.7%
Cash and cash equivalents1.3%
Top 10 equity holdings as of 05/31/2016
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Halliburton Co.3.4%
Archer-Daniels-Midland Co.3.3%
Pfizer Inc.3.2%
Baxalta Inc.3.2%
Bank of New York Mellon Corp.3.2%
Johnson Controls Inc.3.2%
Chevron Corp.3.1%
Cisco Systems Inc.3.1%
CA Inc.3.1%
Marsh & McLennan Cos Inc.3.1%
Total % Portfolio in Top 10 holdings31.9%

Equity sectors as of 05/31/2016

List excludes cash and cash equivalents.

SectorFundBenchmark
Healthcare21.5%0.0%
Energy13.5%0.0%
Consumer staples12.3%0.0%
Financials12.3%0.0%
Information technology12.1%0.0%
Industrials9.0%0.0%
Consumer discretionary6.2%0.0%
Telecommunication services5.9%0.0%
Materials3.0%0.0%
Utilities3.0%0.0%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20160.0000.166
20150.2430.332
20140.0000.289
20130.0000.258
20120.0000.199
20110.0000.221
20100.0000.202
20090.0000.209
20080.0000.279
20070.6500.274
20060.2240.223

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: 33

(View bio)


Kristen Bartholdson

Kristen E. Bartholdson 

Vice President, Senior Portfolio Manager

Start date on the Fund: December 2008

Years of industry experience: 16

(View bio)


Nik Lalvani

Nikhil G. Lalvani, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: October 2006

Years of industry experience: 19

(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: 24

(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 fees0.52%
Distribution and service (12b-1) feesnone
Other expenses0.20%
Total annual fund operating expenses0.72%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.72%

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

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Delaware Value® Fund Quarterly commentary March 31, 2016

Within the Fund

For the first quarter of 2016, Delaware Value Fund Institutional Class shares outperformed its benchmark, the Russell 1000® Value Index, while the Fund’s Class A shares (at net asset value) performed in-line with the benchmark. At the portfolio level, sector allocation had a positive effect while stock selection had a negative effect.

Investments in healthcare and energy caused the largest drags on relative returns. As a group, the Fund’s seven healthcare holdings trailed those in the benchmark, falling -3.5% versus -1.6% for the sector more broadly. Shares of pharmacy benefits manager Express Scripts led the sector lower with a decline of -21.4%. The company is in an ongoing dispute with health insurer Anthem related to its 10-year contract. Anthem filed suit against Express Scripts in March citing both pricing and operational issues. While pricing on the Anthem contract is more favorable to Express Scripts than on other, similar pieces of business, this is by design because Express Scripts made a large, upfront payment at inception. In our view, the stock will likely be range-bound until there is some resolution. We continue to like Express Scripts because of its valuation, solid cash flow, improving return on invested capital, and market leadership position. In the energy sector, stock selection drove relative underperformance as the Fund’s holdings lost -0.4%, on average, versus a gain of 4.2% for the sector in the benchmark. Exploration and production company ConocoPhillips fared worse, down -13.1%. The company reported a hefty loss for the previous quarter, largely on asset write-downs to reflect lower oil prices and cut its quarterly dividend by approximately two-thirds, to $0.25. Combined with other cost-cutting measures, ConocoPhillips has stated that it expects to improve net cash flow by $4.4 billion in 2016.

Investments in the financial and telecommunication services sectors contributed the most to relative performance during the quarter. In financials, the portfolio benefited from stock selection and an underweight allocation. The Fund’s four financial stocks fell -0.7%, on average, compared to a drop of -5.3% for the sector in the benchmark. Insurance broker and professional services provider Marsh & McLennan Companies was the Fund’s strongest holding in the sector, up 10.3%. The company reported better-than-expected revenue growth for the most recent quarter, despite generating about half of its revenue outside of the United States. Excluding the effect of currency fluctuations and acquisitions, Marsh & McLennan’s revenue grew 5% last quarter on a year-over-year basis. In the telecommunication services sector, the Fund’s two holdings modestly outperformed the sector, overall, 16.9% versus 13.9%. Verizon Communications had the strongest performance, with a gain of 18.5%. Nonetheless, most of the relative outperformance came from an overweight allocation. Telecommunication services was the second-strongest performing sector in the Fund’s portfolio and benchmark after utilities for the first quarter, and the strongest-performing sector in both the Fund and benchmark for the trailing year. It had either the highest or second-highest growth in revenues and earnings among all sectors in the most recent quarter and for calendar year 2015 (source: FactSet Research Systems).

There were no full-position purchases or sales in the portfolio during the first quarter. One of the Fund’s energy sector holdings, Occidental Petroleum, distributed retained shares of California Resources (a company it spun off in December 2014) as a special dividend in late March.

Outlook

We anticipate that there will likely be a continuation of the modest economic growth that has characterized the U.S. economy since the current recovery began in 2009. Early on, the need for deleveraging among consumers and financial institutions appeared to be a key impediment to economic activity. More recently, a significant build-up of debt outside of the U.S. seems to be contributing to lower demand for goods and services. Of course, in the U.S., government debt levels have been on the rise. Federal debt was at an all-time high at the end of 2015, having grown to $18.9 trillion from $10.7 trillion at the end of 2008 (source: Federal Reserve Bank of St. Louis). Globally, among the 22 largest countries, in terms of gross domestic product (GDP), private domestic nonfinancial debt recently surpassed its 2009 peak of 151% of GDP, hitting 154% at the end of September 2015 (source: Ned Davis Research).

U.S. stocks generally look fully valued to us. Price multiples for the S&P 500® Index are well above average while prospects for corporate revenue and earnings growth remain modest, in our view.

Overall, we expect to maintain a defensive tilt in the Fund’s portfolio, with overweight allocations in consumer staples, healthcare, and telecommunication services and underweights in most of the more-cyclical areas of the market. We are currently working on new investment ideas in the consumer discretionary, healthcare, and information technology sectors.

[16346]

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 07/01/2016)

Institutional ClassPriceNet change
NAV$19.30-0.02
Max offer price$19.30n/a

Total net assets (as of 05/31/2016)

$11.7 billion all share classes

Overall Morningstar RatingTM

Institutional Class shares (as of 05/31/2016)
RatingNo. of funds
Overall51174
3 Yrs51174
5 Yrs51030
10 Yrs5753
Morningstar categoryLarge Value

(View Morningstar disclosure)

Morningstar ranking (as of 05/31/2016)

YTD ranking101 / 1427
1 year110 / 1355
3 years11 / 1174
5 years6 / 1030
10 years44 / 753
Morningstar categoryLarge Value

(View Morningstar disclosure)

Lipper ranking (as of 05/31/2016)

YTD ranking15 / 535
1 year16 / 493
3 years2 / 443
5 years3 / 401
10 years8 / 291
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