Delaware Investments U.S. Large Cap Value Fund

Investment objective

The investment objective of Delaware Investments U.S. Large Cap Value Fund (Fund) is to aim to achieve long-term capital appreciation. The focus of the Fund’s investments is on equity securities (shares and other similar instruments) of large U.S. companies. At least 80% of the assets of the Fund will normally be invested in such securities.


The Large-Cap Value team takes a classic approach to value-oriented equity investing. We believe stock prices are influenced by human emotion and crowd psychology. We seek to capitalise on discrepancies between estimated intrinsic value and price, typically buying at times of excessive pessimism and selling at times of undue optimism. We develop relatively concentrated and equally weighted portfolios that reflect our deep conviction.

Our style is to seek consistent and potentially enhanced results through the application of a disciplined investment process, identifying equities that may be undervalued relative to their earnings power or asset values. We follow a bottom-up security selection process that emphasizes fundamental research and employs a macroeconomic overlay to help determine our sector positioning. All portfolio decisions are achieved through a vote by the team's five portfolio managers, and each manager's vote counts equally.

Investment process

Step 1. Opportunity universe

The investment team uses a multifactor value screen to define its investment universe. Developed by the quantitative research team at Delaware Investments, the screen utilizes valuation and quality factors. Value factors include price to book value, dividend yield, price to cash flow, price to trailing earnings per share, and other value measures. Among the quality measures we employ are the Ford Quality Rating, return on equity, and change in working capital.

Step 2. Preliminary research

The list of investment candidates is further narrowed after the creation of a "quick look" research report. We examine a security's long-term valuation history, summarize its financial statements, and assess its potential in both bear and bull market environments.

Step 3. In-depth fundamental research

Team-driven primary research includes an in-depth review of company financial statements and direct contact with company management. We develop earnings models using our own assumptions and perform various valuation analyses to help determine estimated intrinsic value. Sell-side research is also reviewed but not for a sense of recommendation or timing. Ultimately, we set high and low price levels for each stock and incorporate a risk/return tradeoff of these levels in our investment decision.

Step 4. Macroeconomic overlay

We analyse economic and corporate trends to identify long-term themes that we believe could affect a sector's price performance. Sector valuation levels are also an important consideration. This leads to our sector overweight and underweight decisions, which are made relative to the S&P 500® Index

Step 5. Portfolio construction

Integration of the macroeconomic overlay and fundamental research occurs in a consensus-building process that leads to the selection of our target portfolio. Through this work, we consider risks at the sector and industry group levels. Primary considerations when constructing the Fund’s portfolio are having exposure across 10 economic sectors, and weighting stocks equally at inception.

Step 6. Sell disciplines

We may decide to sell holdings based on valuation, deteriorating fundamentals, sector weight changes, or position size limits. For example, we may sell because a stock met our price target, or appeared overvalued to us versus its sector or peers. A material change in company-specific or macroeconomic fundamentals could cause us to sell a position. We may also sell because we determine a more attractive long-term investment opportunity is available in another sector. And, a stock may likely be sold or trimmed if it reaches 5% of portfolio value.

Class F USD (Accumulating) shares, net of fees

Performance as of 30 November 2019

  November1 YTD1 1 year 3 year 5 year 10 year Since inception(24/12/2007)
Delaware Investments U.S. Large Cap Value Fund
(Class F USD (Accumulating) shares, net of fees)
2.61% 15.73% 6.64% 8.06% 6.52% 10.95% 6.02%
Russell 1000 Value Index 3.09% 23.15% 11.33% 9.59% 7.83% 11.69% 6.92%

Class I USD (Accumulating) shares, net of fees

Performance as of 30 November 2019

  November1 YTD1 1 year 3 year 5 year  Since inception(17/12/2009)
Delaware Investments U.S. Large Cap Value Fund
(Class I USD (Accumulating) shares, net of fees)
2.68% 16.51% 7.42% 8.86% 7.31% 11.77%
Russell 1000 Value Index 3.09% 23.15% 11.33% 9.59% 7.83% 11.57%

1. Returns for less than one year are not annualized.

As of 30 September 2019, Delaware Investments Large Cap Value Fund had 647,461.282 settled shares, and a total balance of shares in issue of 647,461.282 across all share classes of the Fund.

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. It is an unmanaged index and a theoretical measure of stock-market performance than an actual available instrument. You cannot invest directly in an index.

Portfolio characteristics as of 30 November 2019

Benchmark Index: Russell 1000® Value Index

  Fund Index
Weighted average P/E ratio (FY2) 16.6x 19.3x
Weighted average dividend yield 2.6% 2.5%
Number of holdings 33 766
Weighted average market capitalisation (billions) $99.5 $127.0
Median market capitalisation (billions) $59.3 $9.7

Sector weightings as of 30 November 2019

Sector classifications reflect the changes to the GICS structure which began being implemented in late September 2018. We are using these classifications even though not all index providers may have yet fully incorporated the changes. We are using this approach to maintain consistency across our products.

  Fund Index
Healthcare 21.7 12.9
Financials 15.7 24.2
Information technology 12.0 6.2
Energy 11.6 7.9
Industrials 9.1 9.7
Consumer staples 8.6 8.9
Communication services 6.2 8.2
Consumer discretionary 5.8 5.9
Real estate 3.0 5.3
Utilities 2.9 6.5
Materials 2.6 4.3
Cash 0.8 0.0

The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. It is an unmanaged index and a theoretical measure of stock-market performance than an actual available instrument. You cannot invest directly in an index.

Nik Lalvani

Nikhil G. Lalvani, CFA

Vice President, Senior Portfolio Manager, Team Leader

Start date on the Fund: October 2018

Years of industry experience: 23

(View bio)

Kristen Bartholdson

Kristen E. Bartholdson 

Vice President, Senior Portfolio Manager

Start date on the Fund: December 2008

Years of industry experience: 19

(View bio)

Bob Vogel

Robert A. Vogel Jr., CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: December 2007

Years of industry experience: 28

(View bio)

Portfolio holdings are as of the date noted above and are subject to change at any time. Holdings may not be representative of current or future investments and may not include the entire investment portfolio. Holdings information is made available to the public 30 calendar days after the most recent month-end for monthly holdings and 30 calendar days after the most recent quarter-end for quarterly holdings.

Holdings data is for informational purposes only, and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any specific security. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or part. In no event shall the Macquarie Collective Funds plc or its affiliates have any liability relating to the use of the portfolio holdings.

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

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

Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and Key Investor Information Documents (KIIDs) contain this and other important information about the Fund. You can request a prospectus, fund supplement, and/or KIID free of charge by calling +353-1-483-2429, visiting or by contacting your applicable local agent. Investors should read the prospectus, fund and country supplements (if applicable), and KIIDs carefully before investing or sending money.

Investing involves risk, including the possible loss of principal.

Fixed income securities and bond investments can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

Each Fund is exposed to the risk that a counterparty will not settle a transaction due to a credit or liquidity problem. In the case of a default, the Fund could be subject to adverse market movements while replacement transactions are executed. This may be accentuated for contracts with longer maturities, or where there are concentrated transactions with a small group of counterparties.

Interest rates are determined by factors of supply and demand in the international money markets which are influenced by macro economic factors, speculation and central bank and government intervention. Fluctuations in short-term and/or long-term interest rates may affect the value of the Shares. Fluctuations in interest rates of the currency in which the Shares are denominated and/or fluctuations in interest rates of the currency or currencies in which a Fund’s assets are denominated may affect the value of the Shares.

International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

Non-publicly traded and Rule 144A Securities may involve a high degree of business and financial risk and may result in substantial losses. These securities may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realised from these sales could be less than those originally paid by a Fund.

Prices of derivatives may move in unexpected ways. Some derivatives are “leveraged” and may magnify or otherwise increase investment losses. A liquid secondary market may not always exist for the Funds’ derivatives positions and may not be able to be “closed out” when desired. Derivatives involve legal risk, the risk of loss due to the unexpected application of a law or regulation, or because contracts are not legally enforceable or documented correctly.

Trading in options can cause the Fund’s Net Asset Value to experience more frequent and wider fluctuations than if the Fund did not utilise options. No assurance can be given that the Funds will be able to effect closing transactions at a time when they wish to do so. The Fund may be required to hold assets that it would otherwise have sold and continue to be at market risk on such assets encurring higher transaction costs. Options that are not exchange traded will subject a Fund to risks relating to its counterparty, such as the counterparty’s bankruptcy, insolvency, or refusal to honour its contractual obligations.

Companies involved in Initial Public Offerings generally have limited operating histories, and prospects for future profitability are uncertain. Prices of IPOs may also be unstable because of the absence of a prior public market, the small number of shares available for trading, and limited investor information. IPOs will frequently be sold within 12 months of purchase.

In the event of bankruptcy or other default of a borrower of portfolio securities, a Fund could experience both delays in liquidating the loan collateral or recovering the loaned securities. Possible losses include (a) decline in the value of the collateral or in the value of the securities loaned during the period which the Fund seeks to enforce its rights thereto, (b) sub-normal levels of income and lack of access to income during this period, and (c) expenses of enforcing its rights.

The Funds that invest in debt securities and hold active currency positions may be exposed to currency exchange risk. Currency exchange rates may fluctuate over short periods of time. A Fund may engage in non-U.S. currency transactions in order to hedge against currency fluctuations. Hedging transactions, while potentially reducing the currency risks to which the Fund would otherwise be exposed, involve certain other risks, including the risk of a default by a counterparty.

Fund finder

Daily pricing (as of 21/01/2020)

ClassPriceNet changeYTD
F USD (Acc.)$20.95-0.070.96%
I USD (Acc.)$31.61-0.110.99%
F GBP (Dist.)$31.77-0.192.52%
I GBP (Dist.)$24.78-0.142.57%
I EUR (Acc.)$13.95-0.042.20%

Class F$*


Currency USD
Sedol B29QBC1
CUSIP G2774C148
Bloomberg ID DLCVLFA

Class I$*


Currency USD
Sedol B29QBH6
CUSIP G2774E508
Bloomberg ID DULCIAU

Class F USD (Acc.)
Fees and expenses

Management fee 1.35%
Expense ratio 1.80%

Class I USD (Acc.)
Fees and expenses

Management fee 0.60%
Expense ratio 1.05%


Fund documents

Visit our Literature page for Key Investor Information Documents (KIIDs).

* For information on other share classes, please contact Delaware Investments at +1 215 255-1505 or at