Delaware Group Foundation Funds NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number:		811-08457

Exact name of registrant as specified in charter:		Delaware Group^®Foundation Funds

Address of principal executive offices:		2005 Market Street
		Philadelphia, PA 19103

Name and address of agent for service:		David F. Connor, Esq.
		2005 Market Street
		Philadelphia, PA 19103

Registrant’s telephone number, including area code:		(800) 523-1918

Date of fiscal year end:		September 30

Date of reporting period:		March 31, 2012

Item 1. Reports to Stockholders



Semiannual Report

Delaware Foundation Funds^®	March 31, 2012


Delaware
Foundation^® Equity Fund

Delaware Foundation
Growth Allocation Fund
	Multi-asset mutual funds

Delaware Foundation Moderate Allocation Fund Delaware Foundation Conservative Allocation Fund	Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting www.delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.
	You can obtain shareholder reports and prospectuses online instead of in the mail. Visit www.delawareinvestments.com/edelivery.

Table of contents

	> Disclosure of Fund expenses	1

	> Security type/sector allocations, top 10 equity holdings and country allocations	3

	> Statements of net assets	11

	> Statements of assets and liabilities	83

	> Statements of operations	84

	> Statements of changes in net assets	86

	> Financial highlights	90

	> Notes to financial statements	109

	> Other Fund information	126

	> About the organization	127

Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of Delaware Investments) are wholly owned subsidiaries of Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services.

Investments in Delaware Foundation Funds^® are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Unless otherwise noted, views expressed herein are current as of March 31, 2012, and subject to change.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

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

Disclosure of Fund expenses

For the six-month period from October 1, 2011 to March 31, 2012

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from October 1, 2011 to March 31, 2012.

Actual Expenses

The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.

Delaware Foundation^® Equity Fund
expense analysis of an investment of $1,000

							Expenses
	Beginning		Ending				Paid During
	Account		Account		Annualized		Period
	Value		Value		Expense		10/1/11 to
	10/1/11		3/31/12		Ratio		3/31/12*
Actual Fund return
Class A	$	1,000.00	$	1,224.10	1.18	%	$	6.56
Class C		1,000.00		1,218.20	1.93	%		10.70
Class R		1,000.00		1,222.50	1.43	%		7.95
Institutional Class		1,000.00		1,225.80	0.93	%		5.17
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,019.10	1.18	%	$	5.96
Class C		1,000.00		1,015.35	1.93	%		9.72
Class R		1,000.00		1,017.85	1.43	%		7.21
Institutional Class		1,000.00		1,020.35	0.93	%		4.70

Delaware Foundation Growth Allocation Fund
expense analysis of an investment of $1,000
							Expenses
	Beginning		Ending				Paid During
	Account		Account		Annualized		Period
	Value		Value		Expense		10/1/11 to
	10/1/11		3/31/12		Ratio		3/31/12*
Actual Fund return
Class A	$	1,000.00	$	1,175.90	1.15	%	$	6.26
Class B		1,000.00		1,175.90	1.15	%		6.26
Class C		1,000.00		1,171.00	1.90	%		10.31
Class R		1,000.00		1,174.10	1.40	%		7.61
Institutional Class		1,000.00		1,176.90	0.90	%		4.90
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,019.25	1.15	%	$	5.81
Class B		1,000.00		1,019.25	1.15	%		5.81
Class C		1,000.00		1,015.50	1.90	%		9.57
Class R		1,000.00		1,018.00	1.40	%		7.06
Institutional Class		1,000.00		1,020.50	0.90	%		4.55

(continues) 1

Disclosure of Fund expenses

Delaware Foundation^® Moderate Allocation Fund
expense analysis of an investment of $1,000

							Expenses
	Beginning		Ending				Paid During
	Account		Account		Annualized		Period
	Value		Value		Expense		10/1/11 to
	10/1/11		3/31/12		Ratio		3/31/12*
Actual Fund return
Class A	$	1,000.00	$	1,139.50	1.13	%	$	6.04
Class B		1,000.00		1,134.50	1.90	%		10.14
Class C		1,000.00		1,134.10	1.90	%		10.14
Class R		1,000.00		1,138.30	1.40	%		7.48
Institutional Class		1,000.00		1,140.80	0.90	%		4.82
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,019.35	1.13	%	$	5.70
Class B		1,000.00		1,015.50	1.90	%		9.57
Class C		1,000.00		1,015.50	1.90	%		9.57
Class R		1,000.00		1,018.00	1.40	%		7.06
Institutional Class		1,000.00		1,020.50	0.90	%		4.55

Delaware Foundation Conservative Allocation Fund
expense analysis of an investment of $1,000

							Expenses
	Beginning		Ending				Paid During
	Account		Account		Annualized		Period
	Value		Value		Expense		10/1/11 to
	10/1/11		3/31/12		Ratio		3/31/12*
Actual Fund return
Class A	$	1,000.00	$	1,100.70	1.13	%		$5.93
Class B		1,000.00		1,101.00	1.13	%		5.94
Class C		1,000.00		1,096.40	1.88	%		9.85
Class R		1,000.00		1,099.30	1.38	%		7.24
Institutional Class		1,000.00		1,103.00	0.88	%		4.63
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,019.35	1.13	%		$5.70
Class B		1,000.00		1,019.35	1.13	%		5.70
Class C		1,000.00		1,015.60	1.88	%		9.47
Class R		1,000.00		1,018.10	1.38	%		6.96
Institutional Class		1,000.00		1,020.60	0.88	%		4.45

*	“Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

Security type/sector allocations,
top 10 equity holdings and country allocations

Delaware Foundation^® Equity Fund
As of March 31, 2012

Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations.

	Percentage
Security type/sector	of net assets
Common Stock	92.66	%
U.S. Markets	51.52	%
Consumer Discretionary	5.50	%
Consumer Staples	4.95	%
Energy	5.02	%
Financials	6.60	%
Healthcare	6.51	%
Industrials	5.06	%
Information Technology	13.66	%
Materials	1.31	%
Telecommunication Services	2.10	%
Utilities	0.81	%
Developed Markets	27.98	%
Consumer Discretionary	4.12	%
Consumer Staples	3.97	%
Energy	1.73	%
Financials	2.41	%
Healthcare	3.41	%
Industrials	4.71	%
Information Technology	1.81	%
Materials	4.26	%
Telecommunication Services	0.81	%
Utilities	0.75	%
Emerging Markets	13.16	%
Consumer Discretionary	0.93	%
Consumer Staples	1.18	%
Energy	3.02	%
Financials	1.90	%
Industrials	0.72	%
Information Technology	2.11	%
Materials	1.27	%
Telecommunication Services	2.03	%
Exchange-Traded Funds	2.34	%
Preferred Stock	0.07	%
Short-Term Investments	5.32	%
Securities Lending Collateral	0.15	%
Total Value of Securities	100.54	%
Obligation to Return Securities Lending Collateral	(0.15	%)
Other Liabilities Net of Receivables and Other Assets	(0.39	%)
Total Net Assets	100.00	%

Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.

	Percentage
Top 10 equity holdings	of net assets
Apple	2.21	%
iShares MSCI Japan Index Fund	1.80	%
QUALCOMM	1.22	%
Google Class A	1.04	%
Visa Class A	0.92	%
EOG Resources	0.88	%
MasterCard Class A	0.87	%
Crown Castle International	0.81	%
priceline.com	0.80	%
Pfizer	0.80	%

(continues) 3

Security type/sector allocations,
top 10 equity holdings and country allocations

Delaware Foundation^® Equity Fund

	Percentage
Country	of net assets
Australia	1.31	%
Austria	0.05	%
Belgium	0.12	%
Bermuda	0.05	%
Brazil	2.92	%
Canada	1.81	%
China	2.01	%
Denmark	1.17	%
Finland	0.43	%
France	4.22	%
Germany	1.75	%
Guernsey	0.08	%
Hong Kong	1.41	%
India	0.43	%
Indonesia	0.22	%
Ireland	0.43	%
Israel	0.91	%
Italy	0.19	%
Japan	2.83	%
Malaysia	0.13	%
Mexico	0.83	%
Netherlands	0.55	%
New Zealand	0.06	%
Norway	0.12	%
Panama	0.35	%
Poland	0.07	%
Republic of Korea	2.53	%
Russia	1.22	%
Singapore	0.15	%
South Africa	1.01	%
Spain	0.28	%
Sweden	1.05	%
Switzerland	2.75	%
Taiwan	0.91	%
Thailand	0.49	%
Turkey	0.10	%
United Kingdom	6.27	%
United States	53.86	%
Total	95.07	%

Delaware Foundation^® Growth Allocation Fund
As of March 31, 2012

	Percentage
Security type/sector	of net assets
Common Stock	74.34	%
U.S. Markets	40.01	%
Consumer Discretionary	4.38	%
Consumer Staples	3.76	%
Energy	3.87	%
Financials	5.18	%
Healthcare	5.15	%
Industrials	3.99	%
Information Technology	10.40	%
Materials	1.06	%
Telecommunication Services	1.59	%
Utilities	0.63	%
Developed Markets	23.53	%
Consumer Discretionary	3.51	%
Consumer Staples	3.32	%
Energy	1.37	%
Financials	2.17	%
Healthcare	2.74	%
Industrials	4.05	%
Information Technology	1.66	%
Materials	3.41	%
Telecommunication Services	0.67	%
Utilities	0.63	%
Emerging Markets	10.80	%
Consumer Discretionary	0.82	%
Consumer Staples	1.08	%
Energy	2.39	%
Financials	1.55	%
Industrials	0.50	%
Information Technology	1.75	%
Materials	1.06	%
Telecommunication Services	1.65	%
Utilities	0.00	%
Convertible Preferred Stock	0.09	%
Exchange-Traded Funds	0.05	%
Agency Collateralized Mortgage Obligations	0.30	%
Agency Mortgage-Backed Securities	2.41	%
Commercial Mortgage-Backed Securities	0.61	%
Convertible Bonds	0.56	%
Corporate Bonds	10.76	%
Banking	1.34	%
Basic Industry	1.19	%
Brokerage	0.06	%
Capital Goods	0.19	%
Consumer Cyclical	0.56	%
Consumer Non-Cyclical	1.03	%
Energy	1.95	%
Financials	0.60	%
Insurance	0.30	%
Media	0.27	%
Real Estate	0.50	%
Services	0.29	%
Technology	0.51	%
Telecommunications	0.88	%
Transportation	0.14	%
Utilities	0.95	%
Non-Agency Asset-Backed Securities	0.11	%
Non-Agency Collateralized Mortgage Obligations	0.03	%
Regional Bonds	0.77	%
Senior Secured Loans	1.01	%
Sovereign Bonds	1.79	%
Supranational Banks	0.06	%
U.S. Treasury Obligations	2.57	%
Preferred Stock	0.11	%
Short-Term Investments	6.86	%
Total Value of Securities	102.43	%
Option Written	(0.00	%)
Liabilities Net of Receivables and Other Assets	(2.43	%)
Total Net Assets	100.00	%

(continues) 5

Security type/sector allocations,
top 10 equity holdings and country allocations

Delaware Foundation^® Growth Allocation Fund

Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.

	Percentage
Top 10 equity holdings	of net assets
Apple	1.64	%
QUALCOMM	0.90	%
Google Class A	0.79	%
Visa Class A	0.68	%
EOG Resources	0.65	%
MasterCard Class A	0.64	%
Toyota Motor	0.64	%
CGI Group Class A	0.63	%
Pfizer	0.62	%
Crown Castle International	0.60	%

	Percentage
Country	of net assets
Argentina	0.09	%
Australia	1.79	%
Austria	0.04	%
Belgium	0.10	%
Bermuda	0.11	%
Brazil	2.25	%
Canada	2.06	%
Cayman Islands	0.62	%
China	1.73	%
Colombia	0.05	%
Curacao	0.02	%
Denmark	0.90	%
Finland	0.37	%
France	3.29	%
Germany	1.47	%
Guernsey	0.04	%
Hong Kong	1.33	%
India	0.67	%
Indonesia	0.17	%
Ireland	0.36	%
Israel	0.70	%
Italy	0.24	%
Japan	3.84	%
Jersey	0.01	%
Liberia	0.01	%
Luxembourg	0.20	%
Malaysia	0.13	%
Mexico	0.92	%
Netherlands	0.57	%
New Zealand	0.04	%
Norway	0.51	%
Panama	0.31	%
Peru	0.09	%
Philippines	0.14	%
Poland	0.14	%
Republic of Korea	1.89	%
Russia	1.12	%
Singapore	0.21	%
South Africa	0.86	%
Spain	0.29	%
Supranational	0.06	%
Sweden	0.91	%
Switzerland	2.15	%
Taiwan	0.87	%
Thailand	0.40	%
Turkey	0.09	%
United Kingdom	5.28	%
United States	55.99	%
Uruguay	0.03	%
Venezuela	0.11	%
Total	95.57	%

Delaware Foundation^® Moderate Allocation Fund
As of March 31, 2012

	Percentage
Security type/sector	of net assets
Common Stock	56.33	%
U.S. Markets	30.21	%
Consumer Discretionary	3.26	%
Consumer Staples	2.90	%
Energy	2.96	%
Financials	3.90	%
Healthcare	3.88	%
Industrials	3.00	%
Information Technology	7.82	%
Materials	0.81	%
Telecommunication Services	1.20	%
Utilities	0.48	%
Developed Markets	17.81	%
Consumer Discretionary	2.66	%
Consumer Staples	2.51	%
Energy	1.03	%
Financials	1.65	%
Healthcare	2.07	%
Industrials	3.06	%
Information Technology	1.26	%
Materials	2.58	%
Telecommunication Services	0.51	%
Utilities	0.48	%
Emerging Markets	8.31	%
Consumer Discretionary	0.62	%
Consumer Staples	0.83	%
Energy	1.85	%
Financials	1.17	%
Industrials	0.39	%
Information Technology	1.38	%
Materials	0.82	%
Telecommunication Services	1.25	%
Convertible Preferred Stock	0.17	%
Exchange-Traded Funds	0.03	%
Agency Asset-Backed Securities	0.02	%
Agency Collateralized Mortgage Obligations	0.27	%
Agency Mortgage-Backed Securities	3.92	%
Commercial Mortgage-Backed Securities	1.34	%
Convertible Bonds	1.15	%
Corporate Bonds	20.16	%
Banking	2.38	%
Basic Industry	2.31	%
Brokerage	0.22	%
Capital Goods	0.50	%
Consumer Cyclical	1.16	%
Consumer Non-Cyclical	2.05	%
Energy	3.45	%
Financials	0.85	%
Insurance	0.48	%
Media	0.57	%
Real Estate	0.94	%
Services	0.51	%
Technology	1.03	%
Telecommunications	1.55	%
Transportation	0.28	%
Utilities	1.88	%
Municipal Bond	0.06	%
Non-Agency Asset-Backed Securities	0.52	%
Non-Agency Collateralized Mortgage Obligations	0.12	%
Regional Bonds	1.26	%
Senior Secured Loans	1.85	%
Sovereign Bonds	3.44	%
Supranational Banks	0.12	%
U.S. Treasury Obligations	4.47	%
Preferred Stock	0.22	%
Short-Term Investments	8.61	%
Total Value of Securities	104.06	%
Option Written	(0.01	%)
Liabilities Net of Receivables and Other Assets	(4.05	%)
Total Net Assets	100.00	%

(continues) 7

Security type/sector allocations,
top 10 equity holdings and country allocations

Delaware Foundation^® Moderate Allocation Fund

Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.

	Percentage
Top 10 equity holdings	of net assets
Apple		1.22	%
QUALCOMM		0.67	%
Google Class A		0.59	%
Visa Class A		0.51	%
EOG Resources		0.48	%
CGI Group Class A		0.48	%
MasterCard Class A		0.48	%
Toyota Motor		0.48	%
Pfizer		0.48	%
Archer-Daniels-Midland		0.47	%

	Percentage
Country	of net assets
Argentina		0.07	%
Australia		1.88	%
Austria		0.03	%
Belgium		0.07	%
Bermuda		0.20	%
Brazil		2.17	%
Canada		2.58	%
Cayman Islands		0.91	%
Chile		0.22	%
China		1.36	%
Colombia		0.12	%
Curacao		0.02	%
Denmark		0.68	%
Finland		0.31	%
France		2.60	%
Germany		1.17	%
Guernsey		0.03	%
Hong Kong		1.00	%
India		0.50	%
Indonesia		0.23	%
Ireland		0.35	%
Israel		0.53	%
Italy		0.17	%
Japan		2.91	%
Jersey		0.03	%
Liberia		0.01	%
Luxembourg		0.29	%
Malaysia		0.11	%
Mexico		0.72	%
Netherlands		0.89	%
New Zealand		0.03	%
Norway		0.85	%
Panama		0.31	%
Peru		0.15	%
Philippines		0.13	%
Poland		0.18	%
Qatar		0.06	%
Republic of Korea		1.65	%
Russia		0.96	%
Singapore		0.16	%
South Africa		0.93	%
Spain		0.26	%
Supranational		0.12	%
Sweden		0.78	%
Switzerland		1.62	%
Taiwan		0.66	%
Thailand		0.30	%
Turkey		0.12	%
United Kingdom		4.70	%
United States		59.02	%
Uruguay		0.06	%
Venezuela		0.24	%
Total		95.45	%

Delaware Foundation^® Conservative Allocation Fund
As of March 31, 2012

	Percentage
Security type/sector	of net assets
Common Stock		37.78	%
U.S. Markets		20.36	%
Consumer Discretionary		2.19	%
Consumer Staples		1.94	%
Energy		1.99	%
Financials		2.63	%
Healthcare		2.63	%
Industrials		2.03	%
Information Technology		5.27	%
Materials		0.55	%
Telecommunication Services		0.81	%
Utilities		0.32	%
Developed Markets		11.88	%
Consumer Discretionary		1.78	%
Consumer Staples		1.68	%
Energy		0.69	%
Financials		1.09	%
Healthcare		1.38	%
Industrials		2.04	%
Information Technology		0.84	%
Materials		1.72	%
Telecommunication Services		0.34	%
Utilities		0.32	%
Emerging Markets		5.54	%
Consumer Discretionary		0.41	%
Consumer Staples		0.55	%
Energy		1.25	%
Financials		0.78	%
Industrials		0.26	%
Information Technology		0.92	%
Materials		0.53	%
Telecommunication Services		0.84	%
Convertible Preferred Stock		0.20	%
Exchange-Traded Funds		0.04	%
Agency Collateralized Mortgage Obligations		0.53	%
Agency Mortgage-Backed Securities		7.07	%
Commercial Mortgage-Backed Securities		2.04	%
Convertible Bonds		1.25	%
Corporate Bonds		28.48	%
Banking		3.45	%
Basic Industry		3.28	%
Brokerage		0.29	%
Capital Goods		0.66	%
Consumer Cyclical		1.44	%
Consumer Non-Cyclical		3.11	%
Energy		5.00	%
Financials		1.26	%
Insurance		0.66	%
Media		0.84	%
Real Estate		1.29	%
Services		0.68	%
Technology		1.23	%
Telecommunications		2.28	%
Transportation		0.39	%
Utilities		2.62	%
Non-Agency Asset-Backed Securities		0.76	%
Non-Agency Collateralized Mortgage Obligations		0.10	%
Regional Bonds		1.46	%
Senior Secured Loans		2.70	%
Sovereign Bonds		4.41	%
Supranational Banks		0.17	%
U.S. Treasury Obligations		8.28	%
Preferred Stock		0.31	%
Short-Term Investments		11.76	%
Total Value of Securities		107.34	%
Option Written		(0.02	%)
Liabilities Net of Receivables and Other Assets		(7.32	%)
Total Net Assets		100.00	%

(continues) 9

Security type/sector allocations,
top 10 equity holdings and country allocations

Delaware Foundation^® Conservative Allocation Fund

Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.

	Percentage
Top 10 equity holdings	of net assets
Apple		0.82	%
QUALCOMM		0.45	%
Google Class A		0.40	%
Visa Class A		0.34	%
MasterCard Class A		0.33	%
CGI Group Class A		0.32	%
EOG Resources		0.32	%
Pfizer		0.32	%
Toyota Motor		0.32	%
Archer-Daniels-Midland		0.31	%

	Percentage
Country	of net assets
Argentina		0.05	%
Australia		2.07	%
Austria		0.02	%
Belgium		0.05	%
Bermuda		0.27	%
Brazil		1.26	%
Canada		2.68	%
Cayman Islands		1.42	%
Chile		0.19	%
China		0.90	%
Colombia		0.17	%
Curacao		0.04	%
Denmark		0.45	%
Finland		0.26	%
France		1.82	%
Germany		0.94	%
Guernsey		0.02	%
Hong Kong		0.67	%
India		0.35	%
Indonesia		0.19	%
Ireland		0.24	%
Israel		0.34	%
Italy		0.20	%
Japan		1.94	%
Jersey		0.06	%
Liberia		0.01	%
Luxembourg		0.47	%
Malaysia		0.09	%
Mexico		0.57	%
Netherlands		1.08	%
New Zealand		0.02	%
Norway		1.14	%
Panama		0.26	%
Peru		0.21	%
Philippines		0.11	%
Poland		0.23	%
Republic of Korea		1.24	%
Russia		0.91	%
Singapore		0.10	%
South Africa		0.77	%
Spain		0.23	%
Supranational		0.17	%
Sweden		0.64	%
Switzerland		1.08	%
Taiwan		0.45	%
Thailand		0.20	%
Turkey		0.04	%
United Kingdom		4.08	%
United States		64.52	%
Uruguay		0.08	%
Venezuela		0.28	%
Total		95.58	%

Statements of net assets

Delaware Foundation^® Equity Fund
March 31, 2012 (Unaudited)

		Number of	Value
		Shares	(U.S. $)
Common Stock – 92.66%
U.S. Markets – 51.52%
Consumer Discretionary – 5.50%
†	AFC Enterprises	65	$	1,102
†	Apollo Group Class A	216		8,346
†	Bally Technologies	12		561
†	Buffalo Wild Wings	11		998
	CEC Entertainment	20		758
†	Cheesecake Factory	22		647
	Cinemark Holdings	33		724
	Comcast Class A	288		8,643
	Comcast Special Class	150		4,427
	Cooper Tire & Rubber	37		563
	DSW Class A	17		931
	Ford Motor	230		2,873
†	G-III Apparel Group	21		597
†	Iconix Brand Group	55		956
†	Jack in the Box	36		863
	Jarden	64		2,575
	Jones Group	24		301
†	Jos. A Bank Clothiers	20		1,008
†	Knology	47		855
	Lowe’s	303		9,508
	Macy’s	59		2,344
†	Madden (Steven)	30		1,283
	McDonald’s	36		3,532
	National CineMedia	43		658
	NIKE Class B	84		9,109
	Nordstrom	46		2,563
†	OpenTable	10		405
†	Perry Ellis International	42		784
†	priceline.com	20		14,351
*	Regal Entertainment Group Class A	42		571
†	Shuffle Master	75		1,320
	Staples	450		7,281
	Starbucks	32		1,788
	Target	35		2,039
†	Tenneco	25		929
	Viacom Class B	54		2,563
				98,756
Consumer Staples – 4.95%
	Archer-Daniels-Midland	412		13,043
	Avon Products	569		11,016
	Casey’s General Stores	24		1,331
	Coca-Cola	28		2,072
	CVS Caremark	276		12,364
†	Fresh Market	16		767
	General Mills	57		2,249
	J&J Snack Foods	18		944
	Kimberly-Clark	152		11,231
	Kraft Foods	222		8,438
	PepsiCo	63		4,180
†	Prestige Brands Holdings	39		682
	Procter & Gamble	77		5,175
*	Safeway	433		8,751
†	Susser Holdings	45		1,155
	Walgreen	161		5,392
				88,790
Energy – 5.02%
	Baker Hughes	17		713
	Berry Petroleum Class A	19		895
	Bristow Group	21		1,002
†	Carrizo Oil & Gas	34		961
	Chevron	119		12,762
	ConocoPhillips	111		8,437
	El Paso	241		7,122
	EOG Resources	142		15,775
	Exxon Mobil	76		6,591
	Hess	30		1,769
†	Key Energy Services	38		587
*	Kinder Morgan	88		3,401
	Lufkin Industries	11		887
	Marathon Oil	275		8,718
	National Oilwell Varco	8		636
†	Newfield Exploration	42		1,457
	Occidental Petroleum	16		1,524
†	Pioneer Drilling	96		845
†	RigNet	39		684
†	Rosetta Resources	16		780
	Schlumberger	53		3,706
†	Swift Energy	22		639
	Williams	276		8,504
†	WPX Energy	92		1,657
				90,052
Financials – 6.60%
	AFLAC	45		2,070
	Allstate	262		8,625
	American Equity Investment Life Holding	81		1,034
	Ameriprise Financial	31		1,771
	Bank of New York Mellon	392		9,459
†	BBCN Bancorp	53		590
	BlackRock	13		2,664
	Capital One Financial	38		2,118
	Cardinal Financial	61		689
	City Holding	18		625
	CME Group	33		9,548
	DCT Industrial Trust	144		850
	Delphi Financial Group	30		1,343
	Dime Community Bancshares	54		789
*	DuPont Fabros Technology	36		880
	EastGroup Properties	21		1,055
	Entertainment Properties Trust	20		928
	Flushing Financial	59		794
	Home Bancshares	28		745

(continues) 11

Statements of net assets

Delaware Foundation^® Equity Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Financials (continued)
	Home Properties	18	$	1,098
	Host Hotels & Resorts	128		2,102
@	Independent Bank	26		747
†	IntercontinentalExchange	97		13,331
	JPMorgan Chase	114		5,242
	LaSalle Hotel Properties	39		1,097
	Marsh & McLennan	262		8,591
	Park National	14		968
†	Piper Jaffray	26		692
	Primerica	34		857
	ProAssurance	10		881
	Progressive	478		11,081
	Prosperity Bancshares	18		824
	Prudential Financial	39		2,472
	Sovran Self Storage	22		1,096
	State Street	43		1,957
	Susquehanna Bancshares	95		939
	Tanger Factory Outlet Centers	30		892
†	Texas Capital Bancshares	18		623
	Travelers	169		10,006
	Trustmark	27		674
	Webster Financial	41		929
	Wells Fargo	142		4,848
				118,524
Healthcare – 6.51%
	Abbott Laboratories	50		3,065
†	Acorda Therapeutics	27		717
†	Air Methods	12		1,047
†	Align Technology	46		1,267
	Allergan	149		14,220
	AmerisourceBergen	35		1,389
	Baxter International	144		8,608
	Cardinal Health	202		8,708
†	Catalyst Health Solutions	16		1,020
†	Celgene	31		2,403
	Conmed	26		777
†	CryoLife	73		385
†	Express Scripts	55		2,980
†	Gilead Sciences	52		2,540
†	Greenway Medical Technologies	33		504
†	Haemonetics	14		976
*†	Incyte	49		946
	Johnson & Johnson	142		9,366
	Merck	335		12,864
†	Merit Medical Systems	67		832
†	ONYX Pharmaceuticals	33		1,243
	Perrigo	56		5,785
	Pfizer	632		14,322
	Quality Systems	21		918
	Quest Diagnostics	139		8,500
†	Quidel	52		955
†	Salix Pharmaceuticals	16		840
†	Spectrum Pharmaceuticals	65		821
	Thermo Fisher Scientific	45		2,537
	UnitedHealth Group	70		4,126
†	Vertex Pharmaceuticals	29		1,189
	West Pharmaceutical Services	21		893
				116,743
Industrials – 5.06%
	AAON	42		848
	Acuity Brands	16		1,005
	Applied Industrial Technologies	32		1,316
	Barnes Group	37		973
	Caterpillar	84		8,948
†	Chart Industries	14		1,027
†	Columbus McKinnon	39		635
†	CRA International	18		454
	Cummins	11		1,320
	Deere	31		2,508
	Ducommun	13		155
	ESCO Technologies	21		772
†	Esterline Technologies	18		1,286
	Expeditors International of Washington	148		6,883
	FedEx	16		1,471
	Fluor	28		1,681
†	FTI Consulting	18		675
	General Electric	144		2,890
	Granite Construction	20		575
	Honeywell International	46		2,808
†	Hub Group Class A	34		1,225
	Hunt (J.B.) Transport Services	24		1,305
†	Kadant	34		810
†	KEYW Holding	45		349
†	Kforce	63		939
	Lockheed Martin	20		1,797
	Manpower	22		1,042
	McGrath RentCorp	17		546
†	MYR Group	39		697
	Northrop Grumman	139		8,490
	Raytheon	165		8,709
	Republic Services	38		1,161
	Rockwell Collins	13		748
	Roper Industries	9		892
†	RPX	17		288
†	Tetra Tech	28		738
†	Titan Machinery	36		1,015
	Towers Watson Class A	28		1,850
	Triumph Group	33		2,068
†	Tutor Perini	25		390
	Union Pacific	20		2,150
	United Stationers	35		1,086
	United Technologies	46		3,815

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Industrials (continued)
	URS	28	$	1,191
	US Ecology	36		783
	Waste Management	242		8,460
				90,774
Information Technology – 13.66%
†	Adobe Systems	321		11,014
	Adtran	31		967
*†	Amkor Technology	95		584
†	Anixter International	16		1,160
†	Apple	66		39,566
†	Applied Micro Circuits	107		743
†	Cirrus Logic	28		666
	Cisco Systems	476		10,067
†	Citrix Systems	11		868
†	Cognizant Technology Solutions Class A	33		2,539
†	comScore	30		642
†	Demandware	2		60
†	eBay	38		1,402
†	EMC	132		3,944
†	EPAM Systems	24		492
†	ExlService Holdings	17		466
†	FARO Technologies	19		1,108
†	Google Class A	29		18,596
	Intel	432		12,144
	International Business Machines	8		1,669
	Intuit	202		12,146
†	IXYS	57		752
	j2 Global	34		975
†	Liquidity Services	19		851
†	LogMeln	25		881
	MasterCard Class A	37		15,560
	Microsoft	188		6,063
	Motorola Solutions	174		8,844
†	NETGEAR	18		688
†	Nuance Communications	46		1,177
	Plantronics	22		886
†	Polycom	251		4,787
†	Progress Software	37		874
	QUALCOMM	321		21,835
†	QuinStreet	51		535
†	Rofin-Sinar Technologies	18		475
†	Semtech	27		768
†	SolarWinds	19		734
†	SS&C Technologies Holdings	53		1,236
†	Symantec	90		1,683
†	Synaptics	14		511
	Syntel	11		616
†	TeleTech Holdings	48		773
†	Teradata	122		8,314
†	ValueClick	46		908
	VeriSign	288		11,042
†	ViaSat	16		771
	Visa Class A	140		16,520
†	Vocus	44		583
	Xerox	1,057		8,541
†	Yahoo	404		6,149
				245,175
Materials – 1.31%
	Allegheny Technologies	20		823
	Boise	87		714
†	Castle (A.M.)	72		911
	Celanese Class A	42		1,940
	Cliffs Natural Resources	21		1,454
†	Coeur d’Alene Mines	29		688
	duPont (E.I.) deNemours	200		10,581
	Eastman Chemical	31		1,602
†	Ferro	113		671
	Innophos Holdings	16		802
	Koppers Holdings	14		540
†	Owens-Illinois	46		1,074
	Silgan Holdings	22		972
†	TPC Group	15		663
				23,435
Telecommunication Services – 2.10%
	AT&T	424		13,242
	Atlantic Tele-Network	14		509
†	Crown Castle International	274		14,615
	NTELOS Holdings	25		518
	Verizon Communications	229		8,755
				37,639
Utilities – 0.81%
	AGL Resources	31		1,216
	Cleco	24		952
	Edison International	202		8,587
	MDU Resources Group	55		1,231
	NorthWestern	19		674
	OGE Energy	23		1,231
	UIL Holdings	17		591
				14,482
Total U.S. Markets
	(cost $696,409)			924,370

§Developed Markets – 27.98%
Consumer Discretionary – 4.12%
	Adidas	18		1,405
	Bayerische Motoren Werke	75		6,745
	Cie Financiere Richemont Class A	29		1,818
	Crown	127		1,143
	Don Quijote	200		7,260
	Eutelsat Communications	32		1,183
	Hennes & Mauritz Class B	35		1,266
	Inditex	20		1,916

(continues) 13

Statements of net assets

Delaware Foundation^® Equity Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Consumer Discretionary (continued)
	LVMH Moet Hennessy Louis Vuitton	9	$	1,547
	Next	30		1,431
	Pirelli & C	95		1,130
	PPR	25		4,301
	Publicis Groupe	140		7,718
	Reed Elsevier	130		1,154
	Sky City Entertainment Group	325		1,048
	Sumitomo Rubber Industries	322		4,275
	Swatch Group Bearer Shares	3		1,381
	Techtronic Industries	4,000		5,408
	Toyota Motor	300		12,938
	Yamada Denki	13		812
	Yamaha	100		1,036
	Yue Yuen Industrial Holdings	2,000		7,018
				73,933
Consumer Staples – 3.97%
	Anheuser-Busch InBev	31		2,265
	Aryzta	230		11,363
	British American Tobacco	77		3,880
	Carlsberg Class B	84		6,941
	Coca-Cola Amatil	515		6,652
	Danone	19		1,325
	Diageo	85		2,043
	Golden Agri-Resources	2,000		1,249
	Greggs	560		4,662
	Imperial Tobacco Group	36		1,460
	Kerry Group Class A	30		1,388
	Koninklijke Ahold	105		1,455
	L’Oreal	13		1,604
	Nestle	89		5,600
	Reckitt Benckiser Group	32		1,808
	SABMiller	30		1,204
	Tesco	1,739		9,179
	Unilever	67		2,212
	Unilever CVA	60		2,042
	Wesfarmers	30		933
	Woolworths	75		2,018
				71,283
Energy – 1.73%
	Aker Solutions	75		1,269
	AMEC	70		1,241
	BG Group	126		2,918
†	EDP Renovaveis	200		994
†	Lundin Petroleum	47		1,007
	Neste Oil	90		1,108
	Noble	49		1,836
	Petrofac	44		1,225
	Santos	95		1,401
	Subsea 7	295		7,813
	Total	169		8,619
	Woodside Petroleum	43		1,550
				30,981
Financials – 2.41%
	AIA Group	400		1,465
	Alterra Capital Holdings	40		919
	Assicurazioni Generali	110		1,708
	AXA	419		6,946
	Banca Carige	485		636
	Erste Group Bank	41		945
	Hong Kong Exchanges & Clearing	100		1,680
†	Lloyds Banking Group	3,300		1,774
	London Stock Exchange Group	65		1,075
	Man Group	400		862
	Mitsubishi UFJ Financial Group	1,300		6,470
	Nordea Bank	726		6,601
	Standard Chartered	391		9,756
†	UBS	175		2,452
				43,289
Healthcare – 3.41%
†	Alkermes	74		1,373
	Cie Generale d’Optique
	Essilor International	11		980
	Coloplast Class B	6		1,039
	Dainippon Sumitomo Pharma	100		1,059
	Fresenius	11		1,128
	Getinge Class B	42		1,196
	GlaxoSmithKline	155		3,462
†	ICON ADR	37		785
	Meda Class A	343		3,271
	Novartis	130		7,195
	Novo Nordisk ADR	71		9,848
	Novo Nordisk Class B	16		2,215
	Roche Holding	30		5,221
	Sanofi	97		7,533
	Shire	50		1,615
	Teva Pharmaceutical Industries ADR	293		13,203
				61,123
Industrials – 4.71%
	ABB	111		2,277
	Aeroports de Paris	13		1,067
	Aggreko	35		1,260
	Alfa Laval	50		1,029
	Alstom	170		6,634
	Cie de Saint-Gobain	102		4,555
	Copa Holdings Class A	78		6,178
	Deutsche Post	492		9,472
	DSV	45		1,020
	East Japan Railway	120		7,552
	Elbit Systems	29		1,125
	European Aeronautic Defence & Space	45		1,843
	Ferrovial	95		1,092
	Fraport	19		1,190
	G4S	280		1,220
	Invensys	310		987

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Industrials (continued)
	ITOCHU	717	$	7,821
	Koninklijke Philips Electronics	91		1,845
	QR National	270		1,043
	Rolls-Royce Holdings	90		1,169
	Sandvik	110		1,588
	Schneider Electric	18		1,176
	Siemens	24		2,419
	Societe BIC	11		1,104
	Teleperformance	349		9,971
	Vallourec	71		4,498
	Volvo Class B	125		1,821
	Yamato Holdings	100		1,545
				84,501
Information Technology – 1.81%
	Accenture Class A	39		2,516
	ASML Holding	40		1,999
	Avago Technologies	36		1,403
†	CGI Group Class A	641		14,284
	Computershare	125		1,165
†	Foxconn International Holdings	2,000		1,424
†	InterXion Holding	41		736
*	Nokia	1,195		6,506
	SAP	36		2,514
				32,547
Materials – 4.26%
	Agrium	25		2,159
	Air Liquide	14		1,866
	Anglo American	50		1,869
	Anglo American ADR	100		1,867
†	AuRico Gold	811		7,228
	BASF	40		3,499
	BHP Billiton	102		3,112
	BHP Billiton Limited	140		5,019
	Israel Chemicals	170		1,935
	Johnson Matthey	28		1,056
	Kazakhmys	75		1,089
	Lafarge	66		3,150
	Lanxess	11		909
	Newcrest Mining	55		1,691
	Rexam	1,533		10,498
	Rio Tinto	143		7,882
	Rio Tinto Limited	14		948
	Syngenta	5		1,729
	Syngenta ADR	124		8,535
	Wacker Chemie	9		794
	Yamana Gold	559		8,719
	Yara International	20		954
				76,508
Telecommunication Services – 0.81%
	China Mobile ADR	78		4,296
	Tele2 Class B	55		1,122
	Vodafone Group	2,451		6,751
	Vodafone Group ADR	84		2,324
				14,493
Utilities – 0.75%
	Centrica	250		1,265
	Enagas	55		1,058
	National Grid	960		9,680
	SSE	65		1,382
				13,385
Total Developed Markets
	(cost $457,357)			502,043


XEmerging Markets – 13.16%
Consumer Discretionary – 0.93%
*†	Ctrip.com International ADR	156		3,376
	Focus Media Holding ADR	69		1,733
	Grupo Televisa ADR	230		4,848
	Hyundai Home Shopping Network	32		3,788
	Hyundai Motor	7		1,441
	LG Electronics	20		1,463
				16,649
Consumer Staples – 1.18%
	Brazil Foods ADR	115		2,301
	Cia Brasileira de Distribuicao Grupo
	Pao de Acucar ADR	51		2,429
	Fomento Economico Mexicano ADR	32		2,633
	Hypermarcas	326		2,302
@	Lotte Chilsung Beverage	5		5,372
@	Lotte Confectionery	2		2,931
	Tingyi Cayman Islands Holding	139		402
	Tsingtao Brewery	71		384
	Wal-Mart de Mexico Series V	730		2,450
				21,204
Energy – 3.02%
	Banpu NVDR	175		3,451
	CNOOC	3,000		6,166
	CNOOC ADR	11		2,247
	Gazprom ADR	358		4,428
	LUKOIL ADR	56		3,405
	PetroChina ADR	16		2,248
	Petroleo Brasileiro SA ADR	388		10,305
	Petroleo Brasileiro SP ADR	291		7,438
†	Polski Koncern Naftowy Orlen	102		1,225
	PTT	277		3,181
#	Reliance Industries GDR 144A	188		5,480
	Rosneft Oil GDR	315		2,230
	Sasol ADR	48		2,335
				54,139

(continues) 15

Statements of net assets

Delaware Foundation^® Equity Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
XEmerging Markets (continued)
Financials – 1.90%
	Banco Santander Brasil ADR	200	$	1,834
	Bangkok Bank	171		1,026
	China Construction Bank	2,897		2,238
=#@†	Etalon Group 144A GDR	200		1,370
	ICICI Bank ADR	48		1,674
	Industrial & Commercial Bank of China	5,125		3,306
	Itau Unibanco Holding ADR	200		3,838
@	KB Financial Group ADR	124		4,551
	Samsung Life Insurance	22		1,924
=@	Sberbank	1,267		4,098
	Standard Bank Group	270		3,920
@†	UEM Land Holdings	3,277		2,397
	VTB Bank GDR	404		1,822
				33,998
Industrials – 0.72%
	All America Latina Logistica	330		1,647
	Gol Linhas Aereas Inteligentes ADR	250		1,683
@	KCC	13		3,744
	Santos Brasil Participacoes	113		1,976
	United Tractors	1,085		3,916
				12,966
Information Technology – 2.11%
†	Baidu ADR	18		2,624
	Hon Hai Precision Industry	1,660		6,442
	LG Display ADR	138		1,624
	Samsung Electronics	9		10,138
†	Sina	31		2,015
*†	Sohu.com	129		7,117
	Taiwan Semiconductor
	Manufacturing ADR	246		3,759
	United Microelectronics	7,390		3,619
†	WNS Holdings ADR	47		566
				37,904
Materials – 1.27%
	Anglo American Platinum	25		1,740
	ArcelorMittal South Africa	226		1,649
*	Braskem ADR	103		1,641
*	Cemex ADR	317		2,461
	Fibria Celulose ADR	330		2,769
@	Gerdau	200		1,561
	Gerdau ADR	118		1,136
	Impala Platinum Holdings	86		1,694
	Siam Cement NVDR	100		1,151
	Vale ADR	300		6,999
				22,801
Telecommunication Services – 2.03%
	America Movil ADR	99		2,458
	China Telecom	4,000		2,215
	China Unicom Hong Kong ADR	233		3,914
	Chunghwa Telecom ADR	79		2,430
	KT ADR	258		3,532
	Mobile Telesystems ADR	326		5,979
	MTN Group	135		2,376
	SK Telecom ADR	354		4,924
	Telefonica Brasil ADR	80		2,450
	Turkcell Iletisim Hizmet ADR	141		1,777
	Vodacom Group	316		4,455
				36,510
Total Emerging Markets
	(cost $235,983)			236,171

Total Common Stock
	(cost $1,389,749)			1,662,584

Exchange-Traded Funds – 2.34%
	iShares MSCI EAFE Growth Index	130		7,623
	iShares MSCI Hong Kong Index Fund	60		1,046
	iShares MSCI Japan Index Fund	3,170		32,271
	iShares MSCI Singapore Index Fund	85		1,096
Total Exchange-Traded Funds
	(cost $41,301)			42,036

Preferred Stock – 0.07%
	Volkswagen	7		1,231
Total Preferred Stock (cost $1,178)				1,231

		Principal
		Amount
Short-Term Investments – 5.32%
≠Discount Notes – 2.02%
	Federal Home Loan Bank
	0.04% 4/27/12	$14,923		14,923
	0.65% 4/25/12	21,406		21,406
				36,329
Repurchase Agreements – 2.79%
	Bank of America 0.03%, dated
	3/30/12, to be repurchased
	on 4/2/12, repurchase price
	$14,923 (collateralized by U.S.
	government obligations 0.125%-
	4.125% 12/31/13-5/15/15;
	market value $15,221)	14,923		14,923
	BNP Paribas 0.04%, dated 3/30/12,
	to be repurchased on 4/2/12,
	repurchase price $35,154
	(collateralized by U.S. government
	obligations 1.375%-7.50% 6/15/12-
	2/15/37; market value $35,857)	35,154		35,154
				50,077

		Principal	Value
		Amount	(U.S. $)
Short-Term Investments (continued)
≠U.S. Treasury Obligation – 0.51%
	U.S. Treasury Bill 0.008% 4/19/12	$9,163	$	9,163
				9,163
Total Short-Term Investments
	(cost $95,568)			95,569

Total Value of Securities Before Securities
	Lending Collateral – 100.39%
	(cost $1,527,796)			1,801,420

		Number of
		Shares
Securities Lending Collateral – 0.15%**
	Investment Companies
	Delaware Investments Collateral
	Fund No. 1	2,639		2,639
Total Securities Lending Collateral
	(cost $2,639)			2,639

Total Value of Securities – 100.54%
	(cost $1,530,435)			1,804,059		©
Obligation to Return Securities Lending
	Collateral – (0.15%)**			(2,639		)
Other Liabilities Net of Receivables and
	Other Assets – (0.39%)			(7,106		)«
Net Assets Applicable to 172,479 Shares
	Outstanding – 100.00%		$	1,794,314

Net Asset Value – Delaware Foundation^®Equity Fund
	Class A ($421,128 / 40,493 Shares)				$10.40
Net Asset Value – Delaware Foundation Equity Fund
	Class C ($28,711 / 2,771 Shares)				$10.36
Net Asset Value – Delaware Foundation Equity Fund
	Class R ($6,637 / 639 Shares)				$10.39
Net Asset Value – Delaware Foundation Equity Fund
	Institutional Class ($1,337,838 / 128,576 Shares)				$10.41

Components of Net Assets at March 31, 2012:
Shares of beneficial interest
	(unlimited authorization – no par)		$	1,544,429
Undistributed net investment income				609
Accumulated net realized loss on investments				(24,312		)
Net unrealized appreciation of investments
	and derivatives			273,588
Total net assets			$	1,794,314

†	Non income producing security.
*	Fully or partially on loan.
@	Illiquid security. At March 31, 2012, the aggregate value of illiquid securities was $26,771, which represented 1.49% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
§	Developed Markets – countries that are thought to be most developed and therefore less risky than emerging markets.
X	Emerging Markets – developing countries with relatively low per capita income, often with above-average economic growth potential but more risk.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2012, the aggregate value of Rule 144A securities was $6,850, which represented 0.38% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
=	Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2012, the aggregate value of fair valued securities was $5,468, which represented 0.30% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
≠	The rate shown is the effective yield at the time of purchase.
**	See Note 9 in “Notes to financial statements” for additional information on securities lending collateral.
©	Includes $2,539 of securities loaned.
«	Includes foreign currency valued at $21,489 with a cost of $21,584.

Net Asset Value and Offering Price Per Share –
Delaware Foundation Equity Fund
Net asset value Class A (A)	$	10.40
Sales charge (5.75% of offering price) (B)		0.63
Offering price	$	11.03

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $50,000 or more.

(continues) 17

Statements of net assets

Delaware Foundation^® Equity Fund

The following foreign currency exchange contract was outstanding at March 31, 2012:¹

Foreign Currency Exchange Contracts

Unrealized

Contracts to

Settlement

Appreciation

Counterparty

Receive (Deliver)

In Exchange For

Date

(Depreciation)

MNB

EUR

501

USD

(665

)

4/3/12

$ 2

The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts recognized in the financial statements. The notional values presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.

¹See Note 8 in “Notes to financial statements.”

Summary of Abbreviations:
ADR — American Depositary Receipt
CVA — Dutch Certificate
EUR — European Monetary Unit
GDR — Global Depositary Receipt
MNB — Mellon National Bank
NVDR — Non-Voting Depositary Receipt
USD — United States Dollar

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Growth Allocation Fund
March 31, 2012 (Unaudited)

		Number of	Value
		Shares	(U.S. $)
Common Stock – 74.34%
U.S. Markets – 40.01%
Consumer Discretionary – 4.38%
†	AFC Enterprises	3,295	$	55,883
†	Apollo Group Class A	8,700		336,168
†	Bally Technologies	580		27,115
†	Buffalo Wild Wings	490		44,438
	CEC Entertainment	1,015		38,479
†	Cheesecake Factory	1,045		30,713
	Cinemark Holdings	1,650		36,218
	Comcast Class A	14,600		438,146
	Comcast Special Class	6,400		188,864
	Cooper Tire & Rubber	1,755		26,711
	DSW Class A	1,605		87,906
	Ford Motor	10,240		127,898
†	G-III Apparel Group	1,010		28,704
†	Iconix Brand Group	2,795		48,577
†	Jack in the Box	1,780		42,667
	Jarden	2,760		111,035
	Jones Group	1,200		15,072
†	Jos. A Bank Clothiers	1,045		52,678
†	Knology	2,325		42,315
	Lowe’s	13,700		429,906
	Macy’s	2,670		106,079
†	Madden (Steven)	1,655		70,751
	McDonald’s	1,560		153,036
	National CineMedia	2,205		33,737
	NIKE Class B	3,575		387,673
	Nordstrom	1,990		110,883
†	OpenTable	480		19,426
†	Perry Ellis International	2,135		39,860
†	priceline.com	850		609,875
	Regal Entertainment Group
	Class A	1,750		23,800
†	Shuffle Master	3,905		68,728
	Staples	19,000		307,420
	Starbucks	1,510		84,394
	Target	1,570		91,484
†	Tenneco	1,285		47,738
	Viacom Class B	2,760		130,990
				4,495,367
Consumer Staples – 3.76%
	Archer-Daniels-Midland	19,400		614,203
	Avon Products	21,100		408,496
	Casey’s General Stores	1,185		65,720
	Coca-Cola	1,200		88,812
	CVS Caremark	12,000		537,599
†	Fresh Market	795		38,120
	General Mills	2,440		96,258
	J&J Snack Foods	885		46,427
	Kimberly-Clark	6,820		503,929
	Kraft Foods	10,100		383,901
	PepsiCo	2,640		175,164
†	Prestige Brands Holdings	1,875		32,775
	Procter & Gamble	3,360		225,826
	Safeway	17,600		355,696
†	Susser Holdings	2,275		58,399
	Walgreen	6,800		227,732
				3,859,057
Energy – 3.87%
	Baker Hughes	730		30,616
	Berry Petroleum Class A	995		46,894
	Bristow Group	1,065		50,832
†	Carrizo Oil & Gas	1,660		46,912
	Chevron	5,170		554,432
	ConocoPhillips	5,300		402,853
	El Paso	10,200		301,410
	EOG Resources	6,000		666,601
	Exxon Mobil	3,270		283,607
	Hess	1,360		80,172
†	Key Energy Services	1,850		28,583
	Kinder Morgan	5,000		193,250
	Lufkin Industries	535		43,148
	Marathon Oil	11,700		370,890
	National Oilwell Varco	370		29,404
†	Newfield Exploration	1,730		59,996
	Occidental Petroleum	700		66,661
†	Pioneer Drilling	4,530		39,864
†	RigNet	1,905		33,395
†	Rosetta Resources	790		38,520
	Schlumberger	2,270		158,741
†	Swift Energy	1,060		30,772
	Williams	11,500		354,315
†	WPX Energy	3,833		69,032
				3,980,900
Financials – 5.18%
	AFLAC	1,990		91,520
	Allstate	12,900		424,668
	American Equity Investment
	Life Holding	4,150		52,996
	Ameriprise Financial	1,400		79,982
	Bank of New York Mellon	17,600		424,688
†	BBCN Bancorp	2,625		29,216
	BlackRock	550		112,695
	Capital One Financial	1,640		91,414
	Cardinal Financial	3,030		34,239
	City Holding	910		31,595
	CME Group	1,385		400,722
	DCT Industrial Trust	7,100		41,890
	Dime Community Bancshares	2,635		38,497
	DuPont Fabros Technology	1,730		42,299
	EastGroup Properties	1,055		52,982

(continues) 19

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Financials (continued)
	Entertainment Properties Trust	1,065	$	49,395
	Flushing Financial	2,990		40,245
	Home Bancshares	1,330		35,391
	Home Properties	935		57,044
	Host Hotels & Resorts	5,470		89,817
@	Independent Bank	1,350		38,786
†	IntercontinentalExchange	4,110		564,797
	JPMorgan Chase	4,850		223,003
	LaSalle Hotel Properties	1,970		55,436
	Marsh & McLennan	11,700		383,643
	Park National	655		45,306
†	Piper Jaffray	1,285		34,207
	Primerica	1,745		43,991
	ProAssurance	460		40,531
	Progressive	20,300		470,555
	Prosperity Bancshares	970		44,426
	Prudential Financial	1,710		108,397
	Sovran Self Storage	1,175		58,550
	State Street	1,920		87,360
	Susquehanna Bancshares	4,660		46,041
	Tanger Factory Outlet Centers	1,445		42,960
†	Texas Capital Bancshares	910		31,504
	Travelers	8,240		487,809
	Trustmark	1,350		33,723
	Webster Financial	2,160		48,967
	Wells Fargo	6,200		211,668
				5,322,955
Healthcare – 5.15%
	Abbott Laboratories	2,240		137,290
†	Acorda Therapeutics	1,390		36,905
†	Air Methods	600		52,350
†	Align Technology	2,250		61,988
	Allergan	6,350		605,981
	AmerisourceBergen	1,550		61,504
	Baxter International	7,200		430,416
	Cardinal Health	9,400		405,234
†	Catalyst Health Solutions	770		49,072
†	Celgene	1,350		104,652
	Conmed	1,320		39,428
†	CryoLife	3,685		19,420
†	Express Scripts	2,350		127,323
†	Gilead Sciences	2,230		108,936
†	Greenway Medical Technologies	1,595		24,372
†	Haemonetics	655		45,640
†	Incyte	2,505		48,347
	Johnson & Johnson	5,970		393,781
	Merck	15,210		584,064
†	Merit Medical Systems	3,213		39,905
†	ONYX Pharmaceuticals	1,580		59,534
	Perrigo	2,400		247,944
	Pfizer	28,329		641,923
	Quality Systems	1,035		45,261
	Quest Diagnostics	6,700		409,705
†	Quidel	2,535		46,568
†	Salix Pharmaceuticals	770		40,425
†	Spectrum Pharmaceuticals	3,125		39,469
	Thermo Fisher Scientific	1,940		109,377
	UnitedHealth Group	3,060		180,356
†	Vertex Pharmaceuticals	1,290		52,903
	West Pharmaceutical Services	1,025		43,593
				5,293,666
Industrials – 3.99%
	AAON	2,015		40,683
	Acuity Brands	780		49,007
	Applied Industrial Technologies	1,595		65,602
	Barnes Group	1,875		49,331
	Caterpillar	3,620		385,602
†	Chart Industries	745		54,631
†	Columbus McKinnon	2,205		35,919
†	CRA International	925		23,329
	Cummins	510		61,220
	Deere	1,380		111,642
	Ducommun	635		7,557
	ESCO Technologies	1,020		37,505
†	Esterline Technologies	980		70,031
	Expeditors International
	of Washington	6,300		293,013
	FedEx	690		63,452
	Fluor	1,160		69,646
†	FTI Consulting	880		33,018
	General Electric	6,220		124,835
	Granite Construction	980		28,165
	Honeywell International	2,030		123,932
†	Hub Group Class A	1,705		61,431
	Hunt (J.B.) Transport Services	1,040		56,545
†	Kadant	1,600		38,112
†	KEYW Holding	2,220		17,205
†	Kforce	3,375		50,288
	Lockheed Martin	800		71,888
	Manpower	910		43,107
	McGrath RentCorp	830		26,651
†	MYR Group	1,980		35,363
	Northrop Grumman	6,500		397,020
	Raytheon	7,500		395,850
	Republic Services	1,440		44,006
	Rockwell Collins	550		31,658
	Roper Industries	370		36,689
†	RPX	860		14,586
†	Tetra Tech	1,410		37,168
†	Titan Machinery	1,645		46,389

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Industrials (continued)
	Towers Watson Class A	1,230	$	81,266
	Triumph Group	1,385		86,784
†	Tutor Perini	1,295		20,176
	Union Pacific	820		88,134
	United Stationers	1,670		51,820
	United Technologies	1,980		164,221
	URS	1,190		50,599
	US Ecology	1,825		39,676
	Waste Management	10,900		381,064
				4,095,816
Information Technology – 10.40%
†	Adobe Systems	13,600		466,616
	Adtran	1,550		48,345
†	Amkor Technology	4,810		29,557
†	Anixter International	795		57,661
†	Apple	2,810		1,684,510
†	Applied Micro Circuits	5,280		36,643
†	Cirrus Logic	1,410		33,558
	Cisco Systems	21,320		450,918
†	Citrix Systems	490		38,666
†	Cognizant Technology
	Solutions Class A	1,450		111,578
†	comScore	1,415		30,267
†	Demandware	115		3,427
†	eBay	1,600		59,024
†	EMC	5,530		165,236
†	EPAM Systems	1,135		23,290
†	ExlService Holdings	870		23,873
†	FARO Technologies	970		56,580
†	Google Class A	1,260		807,961
	Intel	19,250		541,118
	International Business Machines	350		73,028
	Intuit	8,550		514,112
†	IXYS	2,795		36,894
	j2 Global	1,665		47,752
†	Liquidity Services	930		41,664
†	LogMeln	1,230		43,333
	MasterCard Class A	1,575		662,350
	Microsoft	8,810		284,123
	Motorola Solutions	7,371		374,668
†	NETGEAR	895		34,189
†	Nuance Communications	1,880		48,090
	Plantronics	1,145		46,098
†	Polycom	10,700		204,049
†	Progress Software	1,820		42,988
	QUALCOMM	13,610		925,751
†	QuinStreet	2,495		26,173
†	Rofin-Sinar Technologies	1,000		26,370
†	Semtech	1,380		39,275
†	SolarWinds	1,010		39,037
†	SS&C Technologies Holdings	2,535		59,142
†	Symantec	3,850		71,995
†	Synaptics	750		27,383
	Syntel	515		28,840
†	TeleTech Holdings	2,415		38,882
†	Teradata	5,200		354,380
†	ValueClick	2,330		45,994
	VeriSign	12,200		467,748
†	ViaSat	800		38,568
	Visa Class A	5,925		699,149
†	Vocus	2,145		28,421
	Xerox	46,500		375,720
†	Yahoo	18,000		273,960
				10,688,954
Materials – 1.06%
	Allegheny Technologies	890		36,641
	Boise	4,640		38,094
†	Castle (A.M.)	3,550		44,908
	Celanese Class A	1,820		84,048
	Cliffs Natural Resources	860		59,564
†	Coeur d’Alene Mines	1,470		34,898
	duPont (E.I.) deNemours	9,390		496,731
	Eastman Chemical	1,370		70,815
†	Ferro	5,385		31,987
	Innophos Holdings	760		38,091
	Koppers Holdings	725		27,956
†	Owens-Illinois	2,010		46,913
	Silgan Holdings	1,095		48,399
†	TPC Group	735		32,494
				1,091,539
Telecommunication Services – 1.59%
	AT&T	18,870		589,310
	Atlantic Tele-Network	655		23,816
†	Crown Castle International	11,600		618,743
	NTELOS Holdings	1,255		25,979
	Verizon Communications	9,900		378,477
				1,636,325
Utilities – 0.63%
	AGL Resources	1,380		54,124
	Cleco	1,205		47,778
	Edison International	8,900		378,339
	MDU Resources Group	2,350		52,617
	NorthWestern	910		32,269
	OGE Energy	1,040		55,640
	UIL Holdings	880		30,589
				651,356
Total U.S. Markets (cost $30,178,157)				41,115,935

(continues) 21

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets – 23.53%
Consumer Discretionary – 3.51%
	Adidas	785	$	61,286
	Bayerische Motoren Werke	3,429		308,363
	Cie Financiere Richemont Class A	1,240		77,749
	Crown	5,650		50,854
	Don Quijote	8,300		301,280
	Eutelsat Communications	1,410		52,126
	Hennes & Mauritz Class B	1,560		56,449
	Inditex	895		85,726
	LVMH Moet Hennessy Louis Vuitton	380		65,300
	McDonald’s Holdings Japan	1,500		39,790
	Next	1,240		59,162
	Pirelli & C	4,070		48,417
	PPR	991		170,492
	Publicis Groupe	6,273		345,808
	Reed Elsevier	5,600		49,711
	Shimamura	400		44,742
	Shimano	900		54,195
	Sky City Entertainment Group	13,500		43,549
	Sumitomo Rubber Industries	15,368		204,016
	Suzuki Motor	2,400		57,315
	Swatch Group Bearer Shares	140		64,440
	Techtronic Industries	201,500		272,452
	Toyota Motor	15,186		654,876
	Yamada Denki	656		40,968
	Yamaha	4,500		46,639
	Yue Yuen Industrial Holdings	102,000		357,925
				3,613,630
Consumer Staples – 3.32%
	Anheuser-Busch InBev	1,360		99,358
	Aryzta	9,752		481,820
	Asahi Group Holdings	2,600		57,568
	British American Tobacco	3,420		172,336
	Carlsberg Class B	3,799		313,911
	Coca-Cola Amatil	23,472		303,160
	Danone	800		55,800
	Diageo	3,750		90,119
	Golden Agri-Resources	79,000		49,340
	Greggs	26,066		217,003
	Imperial Tobacco Group	1,560		63,252
	Japan Tobacco	16		90,065
	Kao	2,700		70,839
	Kerry Group Class A	1,235		57,153
	Koninklijke Ahold	4,500		62,355
	L’Oreal	590		72,776
	Nestle	4,010		252,319
	Reckitt Benckiser Group	1,360		76,852
	SABMiller	1,260		50,574
	Seven & I Holdings	1,600		47,506
	Tesco	77,919		411,271
	Unilever	2,990		98,708
	Unilever CVA	2,540		86,431
	Wesfarmers	1,200		37,312
	Woolworths	3,380		90,952
				3,408,780
Energy – 1.37%
	Aker Solutions	3,070		51,948
	AMEC	2,995		53,077
	BG Group	5,650		130,854
†	EDP Renovaveis	8,750		43,480
	Inpex	7		47,267
†	Lundin Petroleum	2,030		43,509
	Neste Oil	3,770		46,432
	Noble	2,170		81,310
	Petrofac	1,940		53,991
	Santos	4,000		58,996
	Subsea 7	13,448		356,157
	Total	7,314		373,005
	Woodside Petroleum	1,830		65,980
				1,406,006
Financials – 2.17%
	AIA Group	22,000		80,599
	Alterra Capital Holdings	1,995		45,845
	Assicurazioni Generali	4,620		71,719
	AXA	18,909		313,460
	Banca Carige	21,000		27,559
	City Developments	6,000		54,181
	Daito Trust Construction	600		53,850
	Erste Group Bank	1,820		41,967
	Hong Kong Exchanges & Clearing	3,200		53,776
†	Lloyds Banking Group	142,000		76,324
	London Stock Exchange Group	2,750		45,480
	Man Group	17,000		36,653
	Mitsubishi UFJ Financial Group	74,814		372,330
	Nordea Bank	33,142		301,318
	Seven Bank	22,000		47,835
	Sony Financial Holdings	2,700		47,943
	Standard Chartered	17,909		446,855
	Swire Properties	2,450		6,089
†	UBS	7,700		107,904
				2,231,687
Healthcare – 2.74%
��	Alkermes	3,555		65,945
	Cie Generale d’Optique
	Essilor International	480		42,781
	Coloplast Class B	285		49,347
	Dainippon Sumitomo Pharma	4,800		50,850
	Fresenius	475		48,709
	Getinge Class B	1,800		51,258
	GlaxoSmithKline	6,750		150,770

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Healthcare (continued)
†	ICON ADR	1,720	$	36,498
	Meda Class A	15,951		152,135
	Miraca Holdings	1,300		50,722
	Novartis	5,909		327,034
	Novo Nordisk ADR	3,000		416,130
	Novo Nordisk Class B	715		99,001
	Roche Holding	1,340		233,205
	Sanofi	4,429		343,949
	Santen Pharmaceutical	1,100		46,971
	Shire	2,180		70,433
	Teva Pharmaceutical Industries ADR	12,800		576,768
				2,812,506
Industrials – 4.05%
	ABB	5,000		102,581
	Aeroports de Paris	580		47,602
	Aggreko	1,440		51,827
	Alfa Laval	2,120		43,612
	Alstom	7,731		301,684
	Central Japan Railway	7		57,667
	Cie de Saint-Gobain	4,830		215,695
	Copa Holdings Class A	3,300		261,360
	Deutsche Post	20,779		400,021
	DSV	1,980		44,894
	East Japan Railway	5,903		371,500
	Elbit Systems	1,300		50,450
	European Aeronautic
	Defence & Space	1,900		77,804
	FANUC	300		53,198
	Ferrovial	4,150		47,698
	Fraport	810		50,718
	Fraser and Neave	9,000		47,975
	G4S	12,050		52,520
	Hoya	2,700		60,631
	IHI	19,000		47,968
	Invensys	14,100		44,879
	ITOCHU	33,523		365,661
	Koninklijke Philips Electronics	3,819		77,417
	Kurita Water Industries	1,500		36,746
	Mitsubishi Electric	8,000		70,737
	QR National	12,100		46,747
	Rolls-Royce Holdings	4,050		52,600
	Sandvik	4,800		69,288
	Schneider Electric	760		49,655
	Siemens	1,090		109,884
	Societe BIC	475		47,663
	Swire Pacific Class A	4,500		50,444
	Teleperformance	14,581		416,629
	Vallourec	3,207		203,158
	Volvo Class B	5,570		81,160
	Yamato Holdings	3,500		54,074
				4,164,147
Information Technology – 1.66%
	Accenture Class A	1,660		107,070
	ASM Pacific Technology	3,650		53,253
	ASML Holding	1,740		86,974
	Avago Technologies	1,580		61,573
	Canon	2,400		113,354
†	CGI Group Class A	29,128		649,105
	Computershare	5,350		49,871
†	Foxconn International Holdings	63,000		44,863
†	InterXion Holding	2,000		35,900
	Nokia	54,360		295,934
	SAP	1,590		111,030
	Tokyo Electron	800		45,757
	Trend Micro	1,600		49,149
				1,703,833
Materials – 3.41%
	Agrium	1,090		94,143
	Air Liquide	635		84,653
	Anglo American	2,130		79,618
	Anglo American ADR	3,900		72,812
†	AuRico Gold	35,324		314,802
	BASF	1,745		152,642
	BHP Billiton	4,550		138,818
	BHP Billiton Limited	6,285		225,300
	Israel Chemicals	7,900		89,908
	Johnson Matthey	1,245		46,975
	Kansai Paint	5,000		50,432
	Kazakhmys	3,340		48,507
	Lafarge	2,789		133,104
	Lanxess	490		40,503
	Newcrest Mining	2,420		74,393
	Nitto Denko	1,300		52,371
	Rexam	69,785		477,835
	Rio Tinto	6,404		352,970
	Rio Tinto Limited	590		39,965
	Sika Bearer Shares	18		38,963
	Syngenta	230		79,520
	Syngenta ADR	5,250		361,358
	Wacker Chemie	395		34,826
	Yamana Gold	24,350		379,817
	Yara International	880		41,975
				3,506,210
Telecommunication Services – 0.67%
	China Mobile ADR	3,650		201,042
	KDDI	8		51,797
	Tele2 Class B	2,340		47,749
	Vodafone Group	104,017		286,489
	Vodafone Group ADR	3,570		98,782
				685,859

(continues) 23

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Utilities – 0.63%
	Centrica	10,750	$	54,402
	Enagas	2,310		44,455
	National Grid	43,858		442,286
	Shikoku Electric Power	1,500		42,272
	SSE	2,870		61,007
				644,422
Total Developed Markets
	(cost $21,558,987)			24,177,080

XEmerging Markets – 10.80%
Consumer Discretionary – 0.82%
†	Ctrip.com International ADR	6,600		142,824
	Focus Media Holding ADR	3,200		80,384
	Grupo Televisa ADR	10,600		223,448
	Hyundai Home Shopping Network	1,302		154,137
	Hyundai Motor	330		67,930
	LG Electronics	1,171		85,660
	Mahindra & Mahindra	6,403		88,177
				842,560
Consumer Staples – 1.08%
	Brazil Foods ADR	4,600		92,046
	China Mengniu Dairy	23,000		67,381
	Cia Brasileira de Distribuicao
	Grupo Pao de Acucar ADR	2,200		104,764
	Fomento Economico
	Mexicano ADR	1,375		113,121
	Hypermarcas	15,500		109,438
@	Lotte Chilsung Beverage	125		134,287
@	Lotte Confectionery	75		109,926
	Tingyi Cayman Islands Holding	30,245		87,437
	Tsingtao Brewery	13,202		71,318
@	United Spirits	8,879		105,834
	Wal-Mart de Mexico Series V	33,848		113,581
				1,109,133
Energy – 2.39%
	Banpu NVDR	7,380		145,541
	CNOOC	160,000		328,835
	CNOOC ADR	500		102,145
	Gazprom ADR	15,800		195,446
	LUKOIL ADR	2,400		145,920
	PetroChina ADR	725		101,884
	Petroleo Brasileiro SA ADR	17,175		456,168
	Petroleo Brasileiro SP ADR	12,000		306,720
	Polski Koncern Naftowy Orlen	4,748		57,044
	PTT	9,868		113,308
#	Reliance Industries GDR 144A	7,686		224,047
	Rosneft Oil GDR	13,310		94,235
	Sasol ADR	2,000		97,280
	YPF ADR	3,200		90,912
				2,459,485
Financials – 1.55%
	Banco Santander Brasil ADR	11,110		101,879
	Bangkok Bank	17,931		107,598
	China Construction Bank	120,933		93,437
†#@=	Etalon Group GDR 144A	6,500		44,525
	ICICI Bank ADR	2,100		73,227
	Industrial & Commercial
	Bank of China	244,600		157,804
	Itau Unibanco Holding ADR	6,300		120,897
@	KB Financial Group ADR	5,693		208,946
	Samsung Life Insurance	1,470		128,571
@=	Sberbank	61,617		199,282
	Standard Bank Group	11,137		161,682
†@	UEM Land Holdings	153,095		112,005
	VTB Bank GDR	18,500		83,435
				1,593,288
Industrials – 0.50%
	All America Latina Logistica	15,288		76,287
	Gol Linhas Aereas
	Inteligentes ADR	9,900		66,627
@	KCC	545		156,966
	Santos Brasil Participacoes	5,000		87,421
	United Tractors	34,452		124,335
				511,636
Information Technology – 1.75%
†	Baidu ADR	800		116,616
	Hon Hai Precision Industry	71,887		278,953
	HTC	4,255		86,089
	LG Display ADR	6,000		70,620
	MediaTek	8,001		76,602
	Samsung Electronics	349		393,122
†	Sina	1,500		97,500
†	Sohu.com	5,600		308,952
	Taiwan Semiconductor
	Manufacturing	43,074		123,936
	Taiwan Semiconductor
	Manufacturing ADR	4,500		68,760
	United Microelectronics	306,000		149,853
†	WNS Holdings ADR	2,270		27,354
				1,798,357
Materials – 1.06%
	Anglo American Platinum	1,159		80,684
	ArcelorMittal South Africa	10,281		75,003
	Braskem ADR	4,800		76,464
†	Cemex ADR	14,672		113,857
	Fibria Celulose ADR	11,497		96,460
@	Gerdau	7,000		54,638
	Gerdau ADR	5,100		49,113
	Impala Platinum Holdings	3,978		78,360

		Number of		Value
		Shares		(U.S. $)
Common Stock (continued)
XEmerging Markets (continued)
Materials (continued)
	Siam Cement NVDR		3,900	$	44,908
	Steel Authority of India		31,157		57,755
	Ultratech Cement		3,596		107,116
	Vale ADR		10,850		253,131
					1,087,489
Telecommunication Services – 1.65%
	America Movil ADR		4,200		104,286
	China Telecom		172,000		95,241
	China Unicom Hong Kong ADR		10,819		181,759
	Chunghwa Telecom ADR		3,680		113,197
	KT ADR		11,200		153,328
	Mobile Telesystems ADR		18,000		330,120
	MTN Group		4,621		81,339
	SK Telecom ADR		18,000		250,380
	Telefonica Brasil ADR		3,680		112,718
	Turkcell Iletisim Hizmet ADR		7,650		96,390
	Vodacom Group		12,432		175,280
					1,694,038
Utilities – 0.00%
†@	Enel OGK-5 GDR		100		393
					393
Total Emerging Markets
	(cost $10,966,153)				11,096,379

Total Common Stock
	(cost $62,703,297)				76,389,394

Convertible Preferred Stock – 0.09%
	Apache 6.00% exercise price
	$109.12, expiration date 8/1/13		200		11,108
	Aspen Insurance Holdings
	5.625% exercise price $29.28,
	expiration date 12/31/49		262		14,541
	Bank of America 7.25%
	exercise price $50.00,
	expiration date 12/31/49		3		2,937
#	Chesapeake Energy 144A
	5.75% exercise price $27.94,
	expiration date 12/31/49		10		10,200
	HealthSouth 6.50%
	exercise price $30.50,
	expiration date 12/31/49		18		17,735
	PPL 9.50% exercise price
	$28.80, expiration date 7/1/13		250		13,585
	SandRidge Energy 8.50%
	exercise price $8.01, expiration
	date 12/31/49		73		8,710
	Wells Fargo 7.50%
	exercise price $156.71,
	expiration date 12/31/49		9		10,050
Total Convertible Preferred Stock
	(cost $93,378)				88,866

Exchange-Traded Funds – 0.05%
	iShares MSCI EAFE Growth Index		380		22,283
	iShares MSCI Japan Index Fund		2,800		28,504
Total Exchange-Traded Funds
	(cost $49,573)				50,787

		Principal
		Amount°
Agency Collateralized Mortgage Obligations – 0.30%
	Fannie Mae REMICs
	Series 2003-26 AT
	5.00% 11/25/32	USD	35,447		37,669
	Series 2003-32 PH
	5.50% 3/25/32		24,615		25,659
	Series 2010-29 PA
	4.50% 10/25/38		62,092		65,494
	Series 2010-41 PN
	4.50% 4/25/40		20,000		21,573
	Freddie Mac REMICs
	Series 2512 PG
	5.50% 10/15/22		75,000		83,093
	GNMA Series 2010-113 KE
	4.50% 9/20/40		50,000		54,972
	NCUA Guaranteed Notes
	Series 2010-C1 A2
	2.90% 10/29/20		20,000		20,985
Total Agency Collateralized Mortgage
	Obligations (cost $294,868)				309,445

Agency Mortgage-Backed Securities – 2.41%
	Fannie Mae S.F. 15 yr
	4.00% 11/1/25		46,751		50,103
	5.50% 7/1/22		17,888		19,505
	Fannie Mae S.F. 15 yr TBA
	3.00% 4/1/27		183,000		189,434
	3.00% 5/1/27		70,000		72,275
	3.50% 4/1/27		240,000		251,700
	Fannie Mae S.F. 20 yr
	5.50% 8/1/28		17,652		19,260
	Fannie Mae S.F. 30 yr
	3.50% 2/1/41		103,140		106,027
	4.00% 1/1/42		34,814		36,541
	5.00% 12/1/36		109,905		118,844
	6.00% 2/1/41		85,586		94,837
	6.50% 2/1/36		8,533		9,627
	Fannie Mae S.F. 30 yr TBA
	3.50% 4/1/42		260,000		266,988
	3.50% 5/1/42		170,000		174,064
	4.00% 5/1/42		180,000		188,325
	5.50% 5/1/42		60,000		65,269
	6.00% 4/1/42		85,000		93,646
	6.00% 5/1/42		294,000		323,447
	6.00% 6/1/42		75,000		82,406

(continues) 25

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Agency Mortgage-Backed Securities (continued)
	Freddie Mac S.F. 30 yr
	5.50% 3/1/42	USD	130,000	$	141,659
	6.00% 8/1/38		64,409		71,577
	6.00% 10/1/38		90,679		100,771
Total Agency Mortgage-Backed
	Securities (cost $2,455,845)				2,476,305

Commercial Mortgage-Backed Securities – 0.61%
#	American Tower Trust
	Series 2007-1A AFX 144A
	5.42% 4/15/37		25,000		26,615
	BAML Commercial
	Mortgage Securities
	•Series 2005-1 A5
	5.171% 11/10/42		10,000		10,998
	Series 2006-4 A4
	5.634% 7/10/46		110,000		124,132
•	Bear Stearns Commercial
	Mortgage Securities
	Series 2004-PWR4 A3
	5.468% 6/11/41		40,000		42,921
	Series 2006-PW12 A4
	5.719% 9/11/38		40,000		45,405
w	Commercial Mortgage Pass
	Through Certificates
	•Series 2005-C6 A5A
	5.116% 6/10/44		15,000		16,530
	#Series 2010-C1 A1 144A
	3.156% 7/10/46		19,426		20,221
	Goldman Sachs Mortgage
	Securities II
	•Series 2004-GG2 A5
	5.279% 8/10/38		100,000		105,770
	•Series 2004-GG2 A6
	5.396% 8/10/38		45,000		48,550
	Series 2005-GG4 A4
	4.761% 7/10/39		15,000		15,994
	Series 2005-GG4 A4A
	4.751% 7/10/39		20,000		21,689
•	JPMorgan Chase Commercial
	Mortgage Securities
	Series 2005-LDP3 A4A
	4.936% 8/15/42		15,000		16,470
	Series 2005-LDP5 A4
	5.205% 12/15/44		15,000		16,731
	LB-UBS Commercial Mortgage
	Trust Series 2004-C1 A4
	4.568% 1/15/31		15,000		15,774
•	Morgan Stanley Capital I
	Series 2007-T27 A4
	5.64% 6/11/42		55,000		63,229
	#WF-RBS Commercial Mortgage
	Trust Series 2011-C3 A4 144A
	4.375% 3/15/44		30,000		32,153
Total Commercial Mortgage-Backed
	Securities (cost $559,311)				623,182

Convertible Bonds – 0.56%
	AAR 1.75%
	exercise price $29.04,
	expiration date 1/1/26		12,000		11,910
	Advanced Micro Devices
	5.75% exercise price $20.13,
	expiration date 8/15/12		4,000		4,075
	6.00% exercise price $28.08,
	expiration date 4/30/15		24,000		25,080
#	Alaska Communications System
	Group 144A 6.25%
	exercise price $10.28,
	expiration date 4/27/18		13,000		10,075
	Alcatel-Lucent USA 2.875%
	exercise price $15.35,
	expiration date 6/15/25		15,000		14,813
	Alere 3.00%
	exercise price $43.98,
	expiration date 5/15/16		11,000		11,096
#	Ares Capital 144A 5.75%
	exercise price $19.13,
	expiration date 2/1/16		13,000		13,634
Φ	ArvinMeritor 4.00%
	exercise price $26.73,
	expiration date 2/15/27		20,000		16,775
#	BGC Partners 144A 4.50%
	exercise price $9.84,
	expiration date 7/13/16		7,000		7,061
	Chesapeake Energy 2.25%
	exercise price $85.81,
	expiration date 12/15/38		11,000		8,951
#	Clearwire Communications
	144A 8.25%
	exercise price $7.08,
	expiration date 11/30/40		15,000		11,756
#	Corporate Office Properties
	144A 4.25%
	exercise price $48.00,
	expiration date 4/12/30		25,000		24,468
	Dendreon 2.875%
	exercise price $51.24,
	expiration date 1/13/16		5,000		4,025
	Equinix 4.75%
	exercise price $84.32,
	expiration date 6/15/16		7,000		14,035
	Euronet Worldwide 3.50%
	exercise price $40.48,
	expiration date 10/15/25		10,000		10,088
#	Gaylord Entertainment 144A
	3.75% exercise price $27.25,
	expiration date 9/29/14		9,000		11,588
Φ	General Cable 4.50%
	exercise price $36.75,
	expiration date 11/15/29		6,000		6,353
	Health Care REIT 3.00%
	exercise price $51.08,
	expiration date 11/30/29		15,000		17,212

		Principal		Value
		Amount°		(U.S. $)
Convertible Bonds (continued)
	Helix Energy Solutions Group
	3.25% exercise price $25.02,
	expiration date 3/12/32	USD	15,000	$	15,900
Φ	Hologic 2.00%
	exercise price $31.17,
	expiration date 2/27/42		3,000		2,996
#	Illumina 144A 0.25%
	exercise price $83.55,
	expiration date 3/11/16		5,000		4,819
	Intel 2.95%
	exercise price $29.96,
	expiration date 12/15/35		10,000		11,550
	James River Coal 4.50%
	exercise price $25.78,
	expiration date 12/1/15		6,000		3,390
	Jefferies Group 3.875%
	exercise price $37.94,
	expiration date 11/1/29		18,000		17,190
	L-3 Communications Holdings
	3.00% exercise price $96.48,
	expiration date 8/1/35		17,000		16,639
	Leap Wireless International
	4.50% exercise price $93.21,
	expiration date 7/15/14		18,000		17,257
#	Lexington Realty Trust 144A
	6.00% exercise price $7.01,
	expiration date 1/11/30		10,000		13,813
	Linear Technology 3.00%
	exercise price $43.39,
	expiration date 5/1/27		28,000		29,924
	Live Nation Entertainment 2.875%
	exercise price $27.14,
	expiration date 7/14/27		37,000		35,566
	MGM Resorts International
	4.25% exercise price $18.58,
	expiration date 4/10/15		12,000		12,735
	Mylan 3.75%
	exercise price $13.32,
	expiration date 9/10/15		10,000		18,775
	National Retail Properties 5.125%
	exercise price $25.37,
	expiration date 6/15/28		7,000		7,998
#	Nuance Communications 144A
	2.75% exercise price $32.30,
	expiration date 11/1/31		4,000		4,540
	NuVasive
	2.25% exercise price $44.74,
	expiration date 3/15/13		6,000		5,955
	2.75% exercise price $42.13,
	expiration date 6/30/17		11,000		9,433
#	Owens-Brockway Glass
	Container 144A 3.00%
	exercise price $47.47,
	expiration date 5/28/15		25,000		24,594
	Pantry 3.00%
	exercise price $50.09,
	expiration date 11/15/12		16,000		16,100
	Peabody Energy 4.75%
	exercise price $58.19,
	expiration date 12/15/41		2,000		1,910
	PHH 4.00%
	exercise price $25.80,
	expiration date 9/1/14		26,000		25,090
	Rovi 2.625%
	exercise price $47.36,
	expiration date 2/10/40		11,000		11,591
	SanDisk 1.50%
	exercise price $52.37,
	expiration date 8/11/17		11,000		13,076
	SBA Communications 4.00%
	exercise price $30.38,
	expiration date 10/1/14		6,000		10,575
	Transocean 1.50%
	exercise price $158.97,
	expiration date 12/15/37		8,000		7,960
	VeriSign 3.25%
	exercise price $34.37,
	expiration date 8/15/37		13,000		16,673
Total Convertible Bonds
	(cost $547,650)				579,044

Corporate Bonds – 10.76%
Banking – 1.34%
	Abbey National Treasury Services
	4.00% 4/27/16		25,000		24,826
	Bank of America
	3.75% 7/12/16		15,000		15,090
	3.875% 3/22/17		25,000		25,166
	5.70% 1/24/22		45,000		47,726
	BB&T
	3.95% 3/22/22		55,000		55,256
	5.25% 11/1/19		90,000		98,934
•	BB&T Capital Trust IV
	6.82% 6/12/57		10,000		10,138
	Capital One Capital V
	10.25% 8/15/39		18,000		18,585
	City National 5.25% 9/15/20		30,000		30,217
	Cooperatieve Centrale
	Raiffeisen-Boerenleenbank
	3.875% 2/8/22		35,000		33,916
	Fifth Third Bancorp
	3.50% 3/15/22		90,000		88,122
•	Fifth Third Capital Trust IV
	6.50% 4/15/37		45,000		45,000
•#	HBOS Capital Funding 144A
	6.071% 6/29/49		20,000		14,350
	HSBC Holdings 4.00% 3/30/22		135,000		134,088
	JPMorgan Chase 4.50% 1/24/22		25,000		26,060
	JPMorgan Chase Capital XXV
	6.80% 10/1/37		50,000		50,530
	KeyCorp 5.10% 3/24/21		80,000		88,336
	Lloyds TSB Bank 4.20% 3/28/17		85,000		85,734

(continues) 27

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Banking (continued)
	PNC Funding
	3.30% 3/8/22	USD	15,000	$	14,871
	5.125% 2/8/20		135,000		153,166
	5.625% 2/1/17		52,000		58,094
	SunTrust Banks 3.50% 1/20/17		25,000		25,528
	SVB Financial Group
	5.375% 9/15/20		50,000		54,166
•	USB Capital IX 3.50% 10/29/49		65,000		50,188
	Wachovia
	•0.937% 10/15/16		20,000		18,610
	5.25% 8/1/14		10,000		10,769
	5.625% 10/15/16		45,000		50,217
	Wells Fargo 3.50% 3/8/22		25,000		24,663
	Zions Bancorporation
	7.75% 9/23/14		25,000		27,391
					1,379,737
Basic Industry – 1.19%
	AK Steel 7.625% 5/15/20		20,000		19,400
	Alcoa
	5.40% 4/15/21		55,000		56,934
	6.75% 7/15/18		35,000		39,948
#	Algoma Acquisition 144A
	9.875% 6/15/15		15,000		13,725
	ArcelorMittal
	6.25% 2/25/22		45,000		45,583
	9.85% 6/1/19		35,000		42,171
#	Barrick Gold 144A
	3.85% 4/1/22		55,000		55,332
	5.25% 4/1/42		5,000		5,046
	Barrick North America Finance
	4.40% 5/30/21		45,000		47,522
	Century Aluminum
	8.00% 5/15/14		22,000		22,605
	CF Industries 7.125% 5/1/20		32,000		38,200
	Compass Minerals International
	8.00% 6/1/19		15,000		16,350
	Domtar 4.40% 4/1/22		20,000		19,803
	Dow Chemical 8.55% 5/15/19		98,000		128,610
#	FMG Resources August 2006
	144A 6.875% 4/1/22		25,000		24,438
	Georgia-Pacific
	#144A 5.40% 11/1/20		10,000		11,182
	8.00% 1/15/24		70,000		89,291
	Headwaters 7.625% 4/1/19		25,000		24,438
	Hexion U.S. Finance
	8.875% 2/1/18		18,000		18,720
	International Paper
	4.75% 2/15/22		65,000		68,630
	9.375% 5/15/19		5,000		6,615
#	MacDermid 144A 9.50% 4/15/17		7,000		7,298
	Mohawk Industries
	6.375% 1/15/16		9,000		9,990
	Momentive Performance Materials
	11.50% 12/1/16		10,000		8,350
#	Murray Energy 144A
	10.25% 10/15/15		17,000		16,618
	Norcraft 10.50% 12/15/15		10,000		8,825
	Nortek 8.50% 4/15/21		25,000		24,875
	Novelis 8.75% 12/15/20		20,000		22,000
	Ply Gem Industries
	13.125% 7/15/14		10,000		10,150
	Rayonier 3.75% 4/1/22		25,000		24,583
	Rio Tinto Finance USA
	3.50% 3/22/22		110,000		110,431
	Ryerson
	•7.922% 11/1/14		3,000		2,835
	12.00% 11/1/15		19,000		19,570
	Smurfit Kappa Funding
	7.75% 4/1/15		15,000		15,150
	Steel Dynamics 7.75% 4/15/16		5,000		5,213
	Teck Resources
	3.00% 3/1/19		15,000		14,826
	5.20% 3/1/42		35,000		33,328
	Vale Overseas 4.375% 1/11/22		92,000		92,868
					1,221,453
Brokerage – 0.06%
	Jefferies Group
	6.25% 1/15/36		5,000		4,563
	6.45% 6/8/27		10,000		9,950
	Lazard Group 6.85% 6/15/17		45,000		49,526
					64,039
Capital Goods – 0.19%
	Anixter 10.00% 3/15/14		3,000		3,285
	Berry Plastics 9.75% 1/15/21		20,000		21,950
	Koninklijke Philips Electronics
	3.75% 3/15/22		25,000		25,200
	5.00% 3/15/42		50,000		50,090
	Kratos Defense & Security
	Solutions 10.00% 6/1/17		10,000		10,875
#	Plastipak Holdings 144A
	10.625% 8/15/19		10,000		11,450
	Pregis 12.375% 10/15/13		19,000		19,118
	RBS Global 11.75% 8/1/16		14,000		14,858
	Stanley Black & Decker
	3.40% 12/1/21		25,000		25,377
	Trimas 9.75% 12/15/17		10,000		11,100
					193,303
Consumer Cyclical – 0.56%
	American Axle & Manufacturing
	7.875% 3/1/17		24,000		24,840
	CKE Restaurants
	11.375% 7/15/18		16,000		18,360
	Dave & Buster’s 11.00% 6/1/18		5,000		5,375

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Consumer Cyclical (continued)
#	Delphi 144A 6.125% 5/15/21	USD	20,000	$	21,400
	Ford Motor 7.45% 7/16/31		44,000		54,009
	Hanesbrands 6.375% 12/15/20		15,000		15,488
	Historic TW 6.875% 6/15/18		65,000		79,774
	Host Hotels & Resorts
	#144A 5.25% 3/15/22		15,000		15,000
	5.875% 6/15/19		10,000		10,588
	6.00% 11/1/20		15,000		15,975
	#144A 6.00% 10/1/21		12,000		12,840
	Ingles Markets 8.875% 5/15/17		12,000		13,050
	Macy’s Retail Holdings
	3.875% 1/15/22		45,000		45,221
	5.90% 12/1/16		23,000		26,421
	Meritor 8.125% 9/15/15		28,000		29,680
	New Albertsons 7.25% 5/1/13		7,000		7,350
	OSI Restaurant Partners
	10.00% 6/15/15		12,000		12,480
#	Rite Aid 144A 9.25% 3/15/20		5,000		5,063
#	Sealy Mattress 144A
	10.875% 4/15/16		8,000		8,700
	Target 2.90% 1/15/22		30,000		29,714
	Tomkins 9.00% 10/1/18		18,000		20,025
	Tops Holding 10.125% 10/15/15		7,000		7,508
	Wyndham Worldwide
	4.25% 3/1/22		55,000		54,025
	5.625% 3/1/21		20,000		21,570
	5.75% 2/1/18		20,000		22,299
					576,755
Consumer Non-Cyclical – 1.03%
	Accellent 8.375% 2/1/17		10,000		10,100
#	AMGH Merger Sub 144A
	9.25% 11/1/18		15,000		15,675
#	Aristotle Holding 144A
	2.65% 2/15/17		20,000		20,249
	3.50% 11/15/16		10,000		10,457
	3.90% 2/15/22		10,000		10,128
	4.75% 11/15/21		10,000		10,723
	Biomet
	11.625% 10/15/17		10,000		10,863
	PIK 10.375% 10/15/17		10,000		10,825
	Bio-Rad Laboratories
	4.875% 12/15/20		5,000		5,141
	8.00% 9/15/16		9,000		10,035
	Boston Scientific 6.00% 1/15/20		30,000		34,488
	CareFusion 6.375% 8/1/19		55,000		64,005
	Celgene 3.95% 10/15/20		30,000		30,604
	Community Health Systems
	#144A 8.00% 11/15/19		5,000		5,200
	8.875% 7/15/15		2,000		2,075
	Del Monte 7.625% 2/15/19		20,000		20,000
#	Dole Food 144A 8.00% 10/1/16		9,000		9,495
	General Mills 3.15% 12/15/21		15,000		15,045
	Jarden 6.125% 11/15/22		15,000		15,788
#	Kinetic Concepts 144A
	12.50% 11/1/19		20,000		19,000
•	Kraft Foods 1.457% 7/10/13		40,000		40,270
	Kroger 2.20% 1/15/17		80,000		81,359
	Medtronic 3.125% 3/15/22		25,000		25,171
#	Multiplan 144A 9.875% 9/1/18		20,000		21,700
	NBTY 9.00% 10/1/18		25,000		27,656
	PepsiCo 2.75% 3/5/22		35,000		34,127
	Quest Diagnostics 4.70% 4/1/21		40,000		43,377
	Radnet Management
	10.375% 4/1/18		10,000		10,000
#	SABMiller Holdings 144A
	2.45% 1/15/17		225,000		228,077
	Safeway 4.75% 12/1/21		30,000		31,073
	Sara Lee 4.10% 9/15/20		18,000		18,266
	Scotts Miracle-Gro
	6.625% 12/15/20		10,000		10,575
	Teva Pharmaceutical Finance IV
	3.65% 11/10/21		15,000		15,215
	Tyson Foods 10.50% 3/1/14		14,000		16,310
#	Woolworths 144A
	3.15% 4/12/16		15,000		15,559
	4.55% 4/12/21		50,000		53,859
	Zimmer Holdings
	3.375% 11/30/21		30,000		30,149
	4.625% 11/30/19		25,000		27,628
					1,060,267
Energy – 1.95%
	AmeriGas Finance
	6.75% 5/20/20		15,000		15,263
	7.00% 5/20/22		5,000		5,113
	Antero Resources Finance
	9.375% 12/1/17		7,000		7,613
	Berry Petroleum 10.25% 6/1/14		8,000		9,280
#	Canadian Oil Sands 144A
	4.50% 4/1/22		25,000		25,234
	Chesapeake Energy
	6.125% 2/15/21		5,000		4,975
	6.50% 8/15/17		11,000		11,770
	6.625% 8/15/20		10,000		10,225
	Comstock Resources
	7.75% 4/1/19		5,000		4,675
#	Continental Resources 144A
	5.00% 9/15/22		15,000		15,094
	Copano Energy 7.75% 6/1/18		12,000		12,630
	Ecopetrol 7.625% 7/23/19		41,000		50,943
	El Paso Pipeline Partners
	Operating 6.50% 4/1/20		30,000		33,675
•	Enbridge Energy Partners
	8.05% 10/1/37		50,000		54,378
	Encana 3.90% 11/15/21		55,000		53,649

(continues) 29

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Energy (continued)
	Energy Transfer Partners
	4.65% 6/1/21	USD	65,000	$	66,343
	6.05% 6/1/41		5,000		5,063
	9.70% 3/15/19		20,000		25,604
#	ENI 144A 4.15% 10/1/20		100,000		99,341
	Enterprise Products Operating
	•7.034% 1/15/68		55,000		59,195
	9.75% 1/31/14		65,000		74,623
	Forest Oil 7.25% 6/15/19		15,000		14,738
#	Helix Energy Solutions Group
	144A 9.50% 1/15/16		12,000		12,585
#	Hercules Offshore 144A
	10.50% 10/15/17		24,000		25,260
#	Hilcorp Energy I 144A
	7.625% 4/15/21		10,000		10,850
	HollyFrontier 9.875% 6/15/17		12,000		13,440
	Husky Energy 3.95% 4/15/22		100,000		100,879
	Inergy 6.875% 8/1/21		10,000		9,675
	Kinder Morgan Energy Partners
	3.95% 9/1/22		60,000		59,529
	9.00% 2/1/19		40,000		51,306
	Linn Energy
	#144A 6.50% 5/15/19		5,000		4,925
	8.625% 4/15/20		10,000		10,825
#	NFR Energy 144A 9.75% 2/15/17		15,000		12,975
	NiSource Finance
	4.45% 12/1/21		10,000		10,451
	5.80% 2/1/42		25,000		26,778
	Noble Holding International
	3.95% 3/15/22		30,000		30,039
	5.25% 3/15/42		70,000		69,801
	Pemex Project Funding Master
	Trust 6.625% 6/15/35		20,000		23,000
	Petrobras International Finance
	3.50% 2/6/17		10,000		10,275
	5.375% 1/27/21		64,000		69,231
	5.75% 1/20/20		25,000		27,820
	5.875% 3/1/18		5,000		5,633
	Petrohawk Energy 7.25% 8/15/18		30,000		34,463
	Petroleos de Venezuela
	9.00% 11/17/21		118,000		96,169
	12.75% 2/17/22		14,000		14,035
	Petroleum Development
	12.00% 2/15/18		12,000		13,080
	Plains All American Pipeline
	3.65% 6/1/22		50,000		49,190
	8.75% 5/1/19		40,000		52,172
	Pride International
	6.875% 8/15/20		65,000		79,396
	Quicksilver Resources
	9.125% 8/15/19		10,000		9,800
	Range Resources 5.00% 8/15/22		20,000		19,775
#	Samson Investment 144A
	9.75% 2/15/20		5,000		5,069
	SandRidge Energy
	7.50% 3/15/21		5,000		4,950
#	Southwestern Energy 144A
	4.10% 3/15/22		25,000		24,832
•	TransCanada PipeLines
	6.35% 5/15/67		70,000		72,431
	Transocean
	5.05% 12/15/16		5,000		5,360
	6.375% 12/15/21		75,000		84,543
	Weatherford International
	4.50% 4/15/22		10,000		9,986
	9.625% 3/1/19		30,000		39,812
	Williams
	7.75% 6/15/31		10,000		12,215
	8.75% 3/15/32		7,000		9,253
	Williams Partners
	4.00% 11/15/21		25,000		25,312
	7.25% 2/1/17		35,000		42,163
#	Woodside Finance 144A
	8.125% 3/1/14		45,000		49,905
	8.75% 3/1/19		5,000		6,354
					2,004,966
Financials – 0.60%
	E Trade Financial
	12.50% 11/30/17		26,000		30,388
	General Electric Capital
	4.65% 10/17/21		85,000		90,642
	5.50% 2/1/17	NZD	20,000		16,732
	6.00% 8/7/19	USD	99,000		115,783
	International Lease Finance
	5.875% 4/1/19		10,000		9,678
	6.25% 5/15/19		21,000		20,734
	8.25% 12/15/20		35,000		38,595
	8.75% 3/15/17		35,000		39,025
#	IPIC GMTN 144A 5.50% 3/1/22		200,000		206,750
#	Nuveen Investments 144A
	10.50% 11/15/15		25,000		25,906
	Syngenta Finance
	3.125% 3/28/22		25,000		25,218
					619,451
Insurance – 0.30%
•	Chubb 6.375% 3/29/67		35,000		36,313
	Coventry Health Care
	5.45% 6/15/21		50,000		54,832
#	Highmark 144A
	4.75% 5/15/21		15,000		15,051
	6.125% 5/15/41		5,000		5,214
•	ING Groep 5.775% 12/29/49		25,000		21,625
•#	Liberty Mutual Group 144A
	7.00% 3/15/37		10,000		9,050

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Insurance (continued)
	MetLife
	6.40% 12/15/36	USD	35,000	$	34,475
	6.817% 8/15/18		55,000		67,480
	Prudential Financial
	3.875% 1/14/15		10,000		10,537
	4.50% 11/15/20		10,000		10,628
	4.50% 11/16/21		10,000		10,640
	6.00% 12/1/17		10,000		11,665
•	XL Group 6.50% 12/31/49		25,000		21,313
					308,823
Media – 0.27%
	Affinion Group 7.875% 12/15/18		20,000		18,300
	CBS 3.375% 3/1/22		55,000		53,202
	CCO Holdings 7.00% 1/15/19		5,000		5,325
	Clear Channel Communications
	9.00% 3/1/21		10,000		9,050
#	Clear Channel Worldwide 144A
	7.625% 3/15/20		15,000		14,700
	DISH DBS 7.875% 9/1/19		12,000		13,860
	Interpublic Group 4.00% 3/15/22		40,000		39,248
	Nielsen Finance
	11.50% 5/1/16		3,000		3,473
	11.625% 2/1/14		2,000		2,320
#	Sinclair Television Group 144A
	9.25% 11/1/17		12,000		13,410
#	Sirius XM Radio 144A
	8.75% 4/1/15		20,000		22,800
	Time Warner Cable 5.50% 9/1/41		35,000		36,800
#	Univision Communications 144A
	6.875% 5/15/19		20,000		20,375
	Videotron 6.375% 12/15/15		3,000		3,079
#	XM Satellite Radio 144A
	13.00% 8/1/13		17,000		19,316
					275,258
Real Estate – 0.50%
	Alexandria Real Estate Equities
	4.60% 4/1/22		35,000		34,329
	American Tower
	4.70% 3/15/22		10,000		10,100
	5.90% 11/1/21		70,000		77,306
	Brandywine Operating Partnership
	4.95% 4/15/18		30,000		30,631
	Developers Diversified Realty
	4.75% 4/15/18		20,000		20,745
	7.50% 4/1/17		5,000		5,679
	7.875% 9/1/20		30,000		35,536
	9.625% 3/15/16		15,000		18,176
	Digital Realty Trust 5.25% 3/15/21		65,000		67,140
	Health Care REIT
	4.125% 4/1/19		50,000		49,676
	5.25% 1/15/22		40,000		41,920
	Regency Centers 4.80% 4/15/21		30,000		31,015
	UDR 4.625% 1/10/22		50,000		51,285
#	WEA Finance 144A
	4.625% 5/10/21		40,000		40,538
					514,076
Services – 0.29%
	Ameristar Casinos 7.50% 4/15/21		20,000		21,075
	Beazer Homes USA
	9.125% 5/15/19		10,000		8,650
	Casella Waste Systems
	11.00% 7/15/14		4,000		4,300
#	Equinox Holdings 144A
	9.50% 2/1/16		3,000		3,223
	Geo Group 6.625% 2/15/21		10,000		10,513
	Iron Mountain 7.75% 10/1/19		5,000		5,488
	M/I Homes 8.625% 11/15/18		15,000		15,075
	Marina District Finance
	9.875% 8/15/18		5,000		4,513
	MGM Resorts International
	11.375% 3/1/18		42,000		50,137
	Mobile Mini 6.875% 5/1/15		5,000		5,075
	PHH 9.25% 3/1/16		40,000		40,849
	Pinnacle Entertainment
	8.75% 5/15/20		23,000		25,242
	Royal Caribbean Cruises
	7.00% 6/15/13		7,000		7,350
	RSC Equipment Rental
	10.25% 11/15/19		14,000		15,750
	Ryland Group 8.40% 5/15/17		12,000		13,320
	Standard Pacific 10.75% 9/15/16		15,000		17,325
#	United Air Lines 144A
	12.00% 11/1/13		18,000		19,170
	Western Union 3.65% 8/22/18		20,000		21,414
	Wynn Las Vegas 7.75% 8/15/20		5,000		5,519
					293,988
Technology – 0.51%
	Amkor Technology
	7.375% 5/1/18		10,000		10,763
	Avaya
	#144A 7.00% 4/1/19		20,000		20,150
	9.75% 11/1/15		15,000		14,850
	PIK 10.125% 11/1/15		5,000		4,975
	Broadcom 2.70% 11/1/18		35,000		35,641
	CDW 12.535% 10/12/17		10,000		10,913
	First Data
	9.875% 9/24/15		15,000		15,150
	11.25% 3/31/16		20,000		18,200
	GXS Worldwide 9.75% 6/15/15		35,000		34,213
	Hewlett-Packard 4.05% 9/15/22		75,000		74,852
	Jabil Circuit 7.75% 7/15/16		8,000		9,160
	National Semiconductor
	6.60% 6/15/17		55,000		67,927

(continues) 31

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Technology (continued)
#	Seagate Technology International
	144A 10.00% 5/1/14	USD	25,000	$	28,375
	Symantec 4.20% 9/15/20		25,000		25,548
	Tyco Electronics Group
	3.50% 2/3/22		80,000		78,152
#	Unisys 144A 12.75% 10/15/14		7,000		7,840
	Xerox
	4.50% 5/15/21		50,000		51,533
	6.35% 5/15/18		10,000		11,617
					519,859
Telecommunications – 0.88%
	America Movil SAB 5.00% 3/30/20		160,000		178,718
	CenturyLink 5.80% 3/15/22		25,000		24,458
#	Clearwire Communications 144A
	12.00% 12/1/15		33,000		32,670
	Cricket Communications
	7.75% 10/15/20		30,000		29,588
#	Crown Castle Towers 144A
	4.883% 8/15/20		135,000		139,143
#	DIRECTV Holdings 144A
	3.80% 3/15/22		85,000		84,005
	5.15% 3/15/42		15,000		14,668
	Frontier Communications
	6.25% 1/15/13		2,000		2,060
	Intelsat Jackson Holdings
	7.25% 10/15/20		15,000		15,806
	Intelsat Luxembourg
	11.25% 2/4/17		20,000		20,850
	PIK 11.50% 2/4/17		274		286
	Level 3 Financing 10.00% 2/1/18		12,000		13,200
	MetroPCS Wireless
	6.625% 11/15/20		10,000		9,963
	NII Capital 10.00% 8/15/16		21,000		23,888
	PAETEC Holding 8.875% 6/30/17		9,000		9,810
	Qwest
	6.75% 12/1/21		20,000		22,375
	8.375% 5/1/16		45,000		53,996
	Sprint Capital 8.75% 3/15/32		12,000		10,350
	Sprint Nextel
	6.00% 12/1/16		10,000		8,975
	8.375% 8/15/17		10,000		9,700
	#144A 9.125% 3/1/17		20,000		19,950
	Telefonica Emisiones
	6.421% 6/20/16		75,000		80,029
	Telesat Canada
	11.00% 11/1/15		31,000		33,248
	12.50% 11/1/17		12,000		13,470
#	Vivendi 144A 6.625% 4/4/18		37,000		41,617
	West 7.875% 1/15/19		5,000		5,350
	Windstream 8.125% 8/1/13		9,000		9,630
					907,803
Transportation – 0.14%
#	Brambles USA 144A
	3.95% 4/1/15		40,000		41,333
	Burlington Northern Santa Fe
	4.40% 3/15/42		50,000		47,461
	CSX 4.75% 5/30/42		10,000		9,736
#	ERAC USA Finance 144A
	2.75% 3/15/17		5,000		5,001
	5.25% 10/1/20		40,000		43,441
					146,972
Utilities – 0.95%
	AES 8.00% 6/1/20		9,000		10,373
	Ameren Illinois 9.75% 11/15/18		50,000		67,820
#	American Transmission Systems
	144A 5.25% 1/15/22		50,000		56,559
	Baltimore Gas & Electric
	3.50% 11/15/21		45,000		45,576
#	Calpine 144A 7.875% 7/31/20		15,000		16,388
	CenterPoint Energy
	5.95% 2/1/17		30,000		34,095
	CMS Energy
	4.25% 9/30/15		65,000		67,765
	6.25% 2/1/20		10,000		10,974
	ComEd Financing III
	6.35% 3/15/33		20,000		19,296
	Commonwealth Edison
	3.40% 9/1/21		50,000		51,657
	GenOn Energy 9.875% 10/15/20		10,000		9,150
	Great Plains Energy
	5.292% 6/15/22		90,000		96,215
	Ipalco Enterprises 5.00% 5/1/18		15,000		15,000
	Jersey Central Power & Light
	5.625% 5/1/16		10,000		11,246
	LG&E & KU Energy
	3.75% 11/15/20		25,000		24,939
	#144A 4.375% 10/1/21		25,000		25,748
•	NextEra Energy Capital Holdings
	6.35% 10/1/66		25,000		25,525
	NRG Energy
	7.375% 1/15/17		15,000		15,638
	7.875% 5/15/21		15,000		14,475
	PacifiCorp 2.95% 2/1/22		30,000		29,638
	Pennsylvania Electric
	5.20% 4/1/20		25,000		27,136
•	PPL Capital Funding
	6.70% 3/30/67		15,000		15,016
	Public Service Company of
	Oklahoma 5.15% 12/1/19		100,000		112,474
	Puget Energy 6.00% 9/1/21		10,000		10,662
•	Puget Sound Energy
	6.974% 6/1/67		40,000		41,053
	SCANA 4.125% 2/1/22		25,000		25,063

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Utilities (continued)
	Southwest Gas
	3.875% 4/1/22	USD	35,000	$	35,777
	•Wisconsin Energy
	6.25% 5/15/67		55,000		56,712
					971,970
Total Corporate Bonds
	(cost $10,621,768)				11,058,720

Non-Agency Asset-Backed Securities – 0.11%
	•Bank of America Credit Card Trust
	Series 2007-A10 A10
	0.312% 12/15/16		100,000		99,960
	#Sonic Capital Series 2011-1A
	A2 144A 5.438% 5/20/41		14,625		15,238
Total Non-Agency Asset-Backed
	Securities (cost $113,336)				115,198

Non-Agency Collateralized Mortgage Obligations – 0.03%
	Bank of America Alternative
	Loan Trust
	Series 2005-3 2A1
	5.50% 4/25/20		1,567		1,609
	Series 2005-6 7A1
	5.50% 7/25/20		1,549		1,479
	Wells Fargo Mortgage-Backed
	Securities Trust
	Series 2006-2 3A1
	5.75% 3/25/36		10,188		10,075
	•Series 2006-AR5 2A1
	2.638% 4/25/36		19,303		15,258
Total Non-Agency Collateralized Mortgage
	Obligations (cost $22,918)				28,421

ΔRegional Bonds – 0.77%
Australia – 0.62%
	New South Wales Treasury
	6.00% 4/1/19	AUD	203,000		229,556
	Queensland Treasury
	6.00% 9/14/17	AUD	54,000		60,284
	6.25% 6/14/19	AUD	308,000		350,607
					640,447
Canada – 0.15%
	Province of Ontario
	3.15% 6/2/22	CAD	91,000		91,422
	Province of Quebec
	4.25% 12/1/21	CAD	56,000		61,452
					152,874
Total Regional Bonds
	(cost $779,338)				793,321

«Senior Secured Loans – 1.01%
	99 Cents Only Stores Tranche B
	7.00% 10/4/18	USD	19,950		20,313
	AIG Tranche 2 7.00% 3/17/16		25,000		25,119
	Allied Security Holdings
	Tranche 2L 8.50% 1/21/18		10,000		10,033
	Attachmate 6.50% 11/21/16		39,000		38,830
	BNY ConvergEx Group
	7.50% 12/16/17		14,088		14,018
	(EZE Castle Software)
	8.75% 11/29/17		5,912		5,882
	Brock Holdings III
	10.00% 2/15/18		10,000		9,788
	Tranche B 6.00% 2/15/17		9,606		9,582
	Burlington Coat Factory
	Tranche B 6.25% 2/10/17		63,348		63,875
	Caesars Entertainment
	Operating Tranche B6
	5.494% 1/28/18		45,000		40,757
	Cengage Learning Acquisitions
	2.25% 7/3/14		10,000		9,242
	7.50% 7/7/14		43,972		42,681
	Charter Communications
	Operating Tranche B
	8.50% 3/6/14		841		843
	Chrysler Group 6.00% 4/28/17		47,673		48,512
	Clear Channel Communications
	Tranche A 3.40% 7/30/14		48,151		44,630
	Consolidated Container
	5.50% 9/28/14		10,000		9,550
	Delta Air Lines Tranche B
	5.50% 3/29/17		19,925		19,928
	Emdeon Tranche B
	6.75% 8/3/18		19,950		20,272
	First Data 5.00% 3/24/17		25,510		24,466
	Frac Tech International
	Tranche B 6.25% 4/19/16		28,575		28,513
	GenOn Energy Tranche B
	6.00% 6/20/17		19,749		19,593
	Houghton International
	Tranche B 6.75% 1/11/16		9,857		9,900
	Immucor Tranche B
	7.25% 7/2/18		9,950		10,078
	Lawson Software Tranche B
	6.25% 3/16/18		30,000		29,700
	Level 3 Financing
	Tranche B2 5.75% 4/11/18		15,000		15,169
	Tranche B3 5.75% 9/1/18		20,000		20,225
	Lord & Taylor 5.75% 12/2/18		10,000		10,084
	Multiplan 4.75% 8/26/17		14,229		14,132
	Nuveen Investments
	5.50% 5/13/17		36,165		36,218
	8.25% 3/1/19		25,000		25,396

(continues) 33

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
«Senior Secured Loans (continued)
	OSI Restaurant Partners
	2.00% 6/14/13	USD	4,487	$	4,431
	2.53% 6/13/14		45,366		44,673
	PQ 6.79% 7/30/15		20,000		19,289
@	Prime Healthcare Services
	Tranche B 7.25% 4/28/15		34,900		34,245
	Protection One
	5.75% 3/31/19		20,000		19,875
	Remy International Tranche B
	6.25% 12/16/16		19,282		19,378
	Reynolds Group Holdings
	Tranche C 6.50% 7/7/18		59,453		60,300
@	SandRidge Energy
	5.00% 2/2/17		20,000		20,000
	Sensus USA 2nd Lien
	8.50% 4/13/18		25,000		25,000
	Texas Competitive Electric
	Holdings 3.50% 10/10/14		10,000		6,126
	Toys R US Tranche B
	6.00% 9/1/16		24,837		24,922
	Univision Communications
	4.25% 3/29/17		64,454		59,880
	Visant 5.25% 12/31/16		18,897		18,485
Total Senior Secured Loans
	(cost $1,017,918)				1,033,933

ΔSovereign Bonds – 1.79%
Brazil – 0.14%
	Federal Republic of Brazil
	5.625% 1/7/41		100,000		115,750
	8.875% 10/14/19		20,000		28,370
					144,120
Canada – 0.08%
	Canadian Government
	3.75% 6/1/19	CAD	37,000		41,740
	4.00% 6/1/17	CAD	36,000		40,322
					82,062
Finland – 0.04%
	Finland Government
	4.00% 7/4/25	EUR	24,000		36,659
					36,659
Germany – 0.13%
	Deutschland Republic
	2.00% 1/4/22	EUR	57,000		77,383
	2.50% 1/4/21	EUR	18,032		25,759
	3.50% 7/4/19	EUR	20,000		30,665
					133,807
Indonesia – 0.05%
	Indonesia Government
	International
	7.25% 4/20/15	USD	24,000		27,450
	Indonesia Treasury Bond
	11.00% 11/15/20	IDR	179,000,000		26,227
					53,677
Malaysia – 0.02%
	Malaysia Government
	4.262% 9/15/16	MYR	52,000		17,630
					17,630
Mexico – 0.09%
	Mexican Bonos
	6.50% 6/10/21	MXN	219,500		17,585
	8.50% 5/31/29	MXN	457,700		41,055
	8.50% 11/18/38	MXN	187,500		16,424
	Mexico Government
	International
	4.75% 3/8/44	USD	20,000		19,650
					94,714
Norway – 0.42%
	Norwegian Government
	3.75% 5/25/21	NOK	318,000		61,820
	4.25% 5/19/17	NOK	166,000		32,402
	4.50% 5/22/19	NOK	777,000		156,309
	5.00% 5/15/15	NOK	936,000		180,945
					431,476
Panama – 0.05%
	Republic of Panama
	6.70% 1/26/36	USD	4,000		5,280
	7.25% 3/15/15		18,000		20,889
	8.875% 9/30/27		17,000		26,138
					52,307
Peru – 0.09%
	Republic of Peru
	5.625% 11/18/50		10,000		11,250
	7.125% 3/30/19		61,000		78,080
					89,330
Philippines – 0.14%
	Republic of Philippines
	9.50% 10/21/24		99,000		148,253
					148,253
Poland – 0.09%
	Poland Government
	5.25% 10/25/17	PLN	82,000		26,712
	5.25% 10/25/20	PLN	78,000		24,813
	Poland Government
	International
	5.00% 3/23/22	USD	34,000		36,007
					87,532

		Principal		Value
		Amount°		(U.S. $)
ΔSovereign Bonds (continued)
Republic of Korea – 0.03%
	Korea Treasury Inflation
	Linked 2.75% 6/10/20	KRW	29,245,346	$	29,718
					29,718
Russia – 0.10%
	Russian-Eurobond
	7.50% 3/31/30	USD	70,406		84,574
	#144A 7.50% 3/31/30		14,195		17,052
					101,626
South Africa – 0.13%
	South Africa Government
	8.00% 12/21/18	ZAR	1,031,000		136,740
					136,740
Sweden – 0.09%
	Sweden Government
	3.00% 7/12/16	SEK	420,000		67,435
	5.00% 12/1/20	SEK	130,000		24,493
					91,928
United Kingdom – 0.07%
	United Kingdom Gilt
	4.25% 12/7/27	GBP	18,000		33,931
	4.50% 3/7/19	GBP	19,000		36,389
					70,320
Uruguay – 0.03%
	Republic of Uruguay
	8.00% 11/18/22	USD	25,500		35,254
					35,254
Total Sovereign Bonds
	(cost $1,779,957)				1,837,153

Supranational Banks – 0.06%
	International Bank for
	Reconstruction &
	Development
	3.25% 12/15/17	SEK	100,000		15,896
	3.375% 4/30/15	NOK	190,000		34,460
	3.625% 6/22/20	NOK	90,000		16,108
Total Supranational Banks
	(cost $64,345)				66,464

U.S. Treasury Obligations – 2.57%
	U.S. Treasury Bonds
	¥3.125% 11/15/41	USD	1,070,000		1,026,531
	3.125% 2/15/42		10,000		9,588
	U.S. Treasury Notes
	1.00% 3/31/17		795,000		793,261
	2.00% 2/15/22		830,000		814,179
Total U.S. Treasury Obligations
	(cost $2,690,191)				2,643,559

		Number of
		Shares
Preferred Stock – 0.11%
	Alabama Power 5.625%		825		21,161
•	US Bancorp
	3.50%		25		19,750
	6.50%		800		21,752
	Volkswagen		320		56,270
Total Preferred Stock
	(cost $113,418)				118,933

		Principal
		Amount°
Short-Term Investments – 6.86%
≠Discount Notes – 2.19%
	Federal Home Loan Bank
	0.04% 4/27/12	USD	1,095,568		1,095,560
	0.65% 4/25/12		1,155,191		1,155,184
					2,250,744
Repurchase Agreements – 3.58%
	Bank of America 0.03%,
	dated 3/30/12, to be
	repurchased on 4/2/12,
	repurchase price
	$1,095,570 (collateralized
	by U.S. government
	obligations 0.125%-4.125%
	12/31/13-5/15/15; market
	value $1,117,479)		1,095,568		1,095,568
	BNP Paribas 0.04%,
	dated 3/30/12, to be
	repurchased on 4/2/12,
	repurchase price 2,580,908
	(collateralized by
	U.S. government
	obligations 1.375%-7.50%
	6/15/12-2/15/37; market
	value $2,632,517)		2,580,899		2,580,899
					3,676,467
≠U.S. Treasury Obligation – 1.09%
	U.S. Treasury Bill
	0.008% 4/19/12		1,120,892		1,120,872
					1,120,872
Total Short-Term Investments
	(cost $7,047,994)				7,048,083

Total Value of Securities – 102.43%
	(cost $90,955,105)				105,260,808

(continues) 35

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

	Number of	Value
	Contracts	(U.S. $)
Option Written – (0.00%)
Put Option – (0.00%)
U.S. Bond Future,
strike price $139.00,
expires 4/21/12 (JPMC)	(3)	$	(6,093	)
Total Option Written
(premium received $(4,288))			(6,093	)

Liabilities Net of Receivables
and Other Assets – (2.43%)			(2,494,374	)«
Net Assets Applicable to 10,177,029
Shares Outstanding – 100.00%		$	102,760,341

Net Asset Value – Delaware Foundation Growth Allocation
Fund Class A ($44,244,293 / 4,378,014 Shares)			$10.11
Net Asset Value – Delaware Foundation Growth Allocation
Fund Class B ($2,282,521 / 230,404 Shares)			$ 9.91
Net Asset Value – Delaware Foundation Growth Allocation
Fund Class C ($6,797,103 / 686,490 Shares)			$ 9.90
Net Asset Value – Delaware Foundation Growth Allocation
Fund Class R ($12,516,538 / 1,245,240 Shares)			$10.05
Net Asset Value – Delaware Foundation Growth Allocation
Fund Institutional Class ($36,919,886 / 3,636,881 Shares)			$10.15

Components of Net Assets at March 31, 2012:
Shares of beneficial interest
(unlimited authorization – no par)		$	88,985,652
Undistributed net investment income			204,808
Accumulated net realized loss on investments			(725,103	)
Net unrealized appreciation of investments
and derivatives			14,294,984
Total net assets		$	102,760,341

†	Non income producing security.
@	Illiquid security. At March 31, 2012, the aggregate value of illiquid securities was $1,219,820, which represented 1.19% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
§	Developed Markets – countries that are thought to be most developed and therefore less risky than emerging markets.
X	Emerging Markets – developing countries with relatively low per capita income, often with above-average economic growth potential but with more risk.
=	Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2012, the aggregate value of fair valued securities was $243,807, which represented 0.24% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2012, the aggregate value of Rule 144A securities was $2,443,778, which represented 2.38% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
°	Principal amount shown is stated in the currency in which each security is denominated.
•	Variable rate security. The rate shown is the rate as of March 31, 2012. Interest rates reset periodically.
w	Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes.
Φ	Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at March 31, 2012.
Δ	Securities have been classified by country of origin.
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at March 31, 2012.
¥	Fully or partially pledged as collateral for futures contracts.
≠	The rate shown is the effective yield at the time of purchase.
«	Includes foreign currency valued at $285,307 with a cost of $280,765.

Net Asset Value and Offering Price Per Share –
Delaware Foundation Growth Allocation Fund
Net asset value Class A (A)	$	10.11
Sales charge (5.75% of offering price) (B)		0.62
Offering price	$	10.73

The following foreign currency exchange contracts, futures contracts and swap contracts were outstanding at March 31, 2012:¹

Foreign Currency Exchange Contracts
								Unrealized
	Contracts to						Settlement	Appreciation
Counterparty	Receive (Deliver)			In Exchange For			Date	(Depreciation)
BAML	AUD	(88,613	)	USD	92,248		5/2/12		$	810
BAML	BRL	188,485		USD	(102,299	)	5/2/12			177
BAML	EUR	(315,894	)	USD	416,885		5/2/12			(4,471	)
BAML	HUF	(60,095,700	)	USD	270,000		5/2/12			(956	)
BAML	JPY	(2,477,807	)	USD	29,501		5/2/12			(439	)
BAML	MXN	2,391,285		USD	(187,863	)	5/2/12			(1,546	)
BAML	NOK	(284,033	)	USD	49,267		5/2/12			(552	)
BAML	NZD	(12,069	)	USD	9,790		5/2/12			(70	)
BAML	RUB	4,207,920		USD	(142,964	)	5/2/12			(181	)
BAML	ZAR	(1,129,729	)	USD	146,944		5/2/12			375
BCLY	EUR	(29,734	)	USD	39,383		5/2/12			(279	)
BCLY	JPY	2,668,921		USD	(31,838	)	5/2/12			411
CITI	BRL	189,200		USD	(102,910	)	5/2/12			(46	)
CITI	EUR	(79,078	)	USD	104,346		5/2/12			(1,132	)
CITI	JPY	2,843,862		USD	(33,921	)	5/2/12			442
GSC	BRL	223,284		USD	(121,120	)	5/2/12			275
GSC	GBP	42,296		USD	(66,942	)	5/2/12			694
GSC	NOK	(110,720	)	USD	19,129		5/2/12			(291	)
GSC	RUB	2,081,100		USD	(70,630	)	5/2/12			(14	)
HSBC	AUD	(133,798	)	USD	139,270		5/2/12			1,207
HSBC	EUR	(14,584	)	USD	19,246		5/2/12			(206	)
HSBC	NOK	(488,764	)	USD	84,898		5/2/12			(831	)
HSBC	PLN	(222,768	)	USD	70,000		5/2/12			(1,393	)
JPMC	BRL	124,250		USD	(67,490	)	5/2/12			61
JPMC	EUR	(36,271	)	USD	47,842		5/2/12			(539	)
JPMC	NOK	(566,745	)	USD	98,180		5/2/12			(1,227	)
MNB	EUR	21,677		USD	(28,808	)	4/3/12			101
MNB	HKD	134,803		USD	(17,365	)	4/3/12			(5	)
MSC	AUD	(41,085	)	USD	42,678		5/2/12			283
MSC	EUR	(171,611	)	USD	226,375		5/2/12			(2,529	)
MSC	GBP	(19,600	)	USD	31,022		5/2/12			(320	)
MSC	JPY	1,630,940		USD	(19,882	)	5/2/12			(176	)
MSC	NOK	(221,444	)	USD	38,357		5/2/12			(484	)
MSC	RUB	1,798,700		USD	(61,066	)	5/2/12			(33	)
									$	(12,884	)

Futures Contracts
	Notional							Unrealized
Contracts to	Cost			Notional			Expiration	Appreciation
Buy (Sell)	(Proceeds)			Value			Date	(Depreciation)
1 Euro-Bund	$	181,875		$	184,697		6/12/12		$	2,822
(3) U.S. Treasury
10 yr Notes		(387,179	)		(388,453	)	6/29/12			(1,274	)
	$	(205,304	)						$	1,548

Swap Contracts CDS Contracts

				Annual			Unrealized
	Swap Referenced	Notional		Protection		Termination	Appreciation
Counterparty	Obligation	Value		Payments		Date	(Depreciation)
	Protection Purchased:
	ITRAXX Europe
	Subordinate
	Financials 17.1
BAML	5 yr CDS	EUR	215,000	5.00	%	6/20/17		$	5,353
	Kingdom of Spain
BAML	5 yr CDS	USD	59,000	1.00	%	12/20/15			1,420
	ITRAXX Europe
	Subordinate
	Financials 17.1
BCLY	5 yr CDS	EUR	315,000	5.00	%	6/20/17			7,742
	Kingdom of Spain
BCLY	5 yr CDS	USD	60,000	1.00	%	3/20/15			4,197
BCLY	5 yr CDS		30,000	1.00	%	3/21/16			875
	Republic of France
BCLY	5 yr CDS		74,000	0.25	%	9/20/16			(1,207	)
	Republic of France
GSC	5 yr CDS		32,000	0.25	%	9/20/16			(465	)
	ITRAXX Europe
	Crossover 16.1
JPMC	5 yr CDS	EUR	275,000	5.00	%	12/20/16			(15,572	)
	Kingdom of Spain
JPMC	5 yr CDS	USD	38,000	1.00	%	3/20/17			937
	Republic of France
JPMC	5 yr CDS		53,000	0.25	%	9/20/16			(852	)
	Japan
MSC	5 yr CDS		50,000	1.00	%	9/20/16			(595	)
MSC	5 yr CDS		82,000	1.00	%	3/20/17			(1,704	)
	Kingdom of
	Belgium
MSC	5 yr CDS		104,000	1.00	%	12/20/16			(4,040	)
MSC	5 yr CDS		32,000	1.00	%	3/20/17			(1,474	)
	Kingdom of Spain
MSC	5 yr CDS		72,000	1.00	%	6/20/16			3,976
MSC	5 yr CDS		80,000	1.00	%	9/20/16			806
MSC	5 yr CDS		70,000	1.00	%	3/20/17			912
	Republic of France
MSC	5 yr CDS		57,000	0.25	%	12/20/16			(1,031	)
	Republic of Italy
MSC	5 yr CDS		60,000	1.00	%	9/20/16			909
MSC	5 yr CDS		32,000	1.00	%	3/20/17			(1,640	)
								$	(1,453	)
	Protection Sold /
	Moody’s Rating:
	Tyson Foods
JPMC	CDS / Ba		30,000	1.00	%	3/20/16		$	976
								$	976
Total								$	(477	)

(continues) 37

Statements of net assets

Delaware Foundation^® Growth Allocation Fund

The use of foreign currency exchange contracts, futures contracts, option written and swaps contracts involves elements of market risk and risks in excess of the amount recognized in the financial statements. The notional values presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.

¹See Note 8 in “Notes to financial statements.”

Summary of Abbreviations:
ADR — American Depositary Receipt
AUD — Australian Dollar
BAML — Bank of America Merrill Lynch
BCLY — Barclays Bank
BRL — Brazilian Real
CAD — Canadian Dollar
CDS — Credit Default Swap
CITI — Citigroup Global Markets
CVA — Dutch Certificate
EUR — European Monetary Unit
GBP — British Pound Sterling
GDR — Global Depositary Receipt
GNMA — Government National Mortgage Association
GSC — Goldman Sachs Capital
HKD — Hong Kong Dollar
HSBC — Hong Kong Shanghai Bank
HUF — Hungarian Forint
IDR — Indonesian Rupiah
JPMC — JPMorgan Chase Bank
JPY — Japanese Yen
KRW — South Korean Won
MNB — Mellon National Bank
MSC — Morgan Stanley Capital
MXN — Mexican Peso
MYR — Malaysian Ringgit
NCUA — National Credit Union Administration
NOK — Norwegian Kroner
NVDR — Non-Voting Depositary Receipt
NZD — New Zealand Dollar
PIK — Pay-in-kind
PLN — Polish Zloty
REIT — Real Estate Investment Trust
REMIC — Real Estate Mortgage Investment Conduit
RUB — Russian Ruble
SEK — Swedish Krona
S.F. — Single Family
TBA — To be announced
USD — United States Dollar
yr — year
ZAR — South African Rand

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Moderate Allocation Fund
March 31, 2012 (Unaudited)

		Number of	Value
		Shares	(U.S. $)
Common Stock – 56.33%
U.S. Markets – 30.21%
Consumer Discretionary – 3.26%
†	AFC Enterprises	9,730	$	165,021
†	Apollo Group Class A	25,300		977,592
†	Bally Technologies	1,720		80,410
†	Buffalo Wild Wings	1,455		131,954
	CEC Entertainment	3,040		115,246
†	Cheesecake Factory	3,120		91,697
	Cinemark Holdings	4,870		106,897
	Comcast Class A	39,500		1,185,395
	Comcast Special Class	18,970		559,805
	Cooper Tire & Rubber	5,305		80,742
	DSW Class A	4,840		265,087
	Ford Motor	30,020		374,950
†	G-III Apparel Group	3,005		85,402
†	Iconix Brand Group	8,315		144,515
†	Jack in the Box	5,300		127,041
	Jarden	8,010		322,242
	Jones Group	3,545		44,525
†	Jos. A Bank Clothiers	3,110		156,775
†	Knology	6,845		124,579
	Lowe’s	41,500		1,302,269
	Macy’s	7,740		307,510
†	Madden (Steven)	4,770		203,918
	McDonald’s	4,590		450,279
	National CineMedia	6,555		100,292
	NIKE Class B	10,400		1,127,776
	Nordstrom	5,900		328,748
†	OpenTable	1,430		57,872
†	Perry Ellis International	6,285		117,341
†	priceline.com	2,500		1,793,749
	Regal Entertainment Group Class A	5,190		70,584
†	Shuffle Master	11,195		197,032
	Staples	55,600		899,608
	Starbucks	4,350		243,122
	Target	4,650		270,956
†	Tenneco	3,740		138,941
	Viacom Class B	7,970		378,256
				13,128,128
Consumer Staples – 2.90%
	Archer-Daniels-Midland	59,380		1,879,970
	Avon Products	68,300		1,322,287
	Bunge	1,475		100,949
	Casey’s General Stores	3,435		190,505
	Coca-Cola	3,510		259,775
	CVS Caremark	36,120		1,618,175
†	Fresh Market	2,310		110,765
	General Mills	7,180		283,251
	J&J Snack Foods	2,550		133,773
	Kimberly-Clark	20,300		1,499,966
	Kraft Foods	30,200		1,147,902
	PepsiCo	7,690		510,232
†	Prestige Brands Holdings	5,575		97,451
	Procter & Gamble	9,760		655,970
	Safeway	51,400		1,038,794
†	Susser Holdings	6,600		169,422
	Walgreen	19,900		666,451
				11,685,638
Energy – 2.96%
	Baker Hughes	2,200		92,268
	Berry Petroleum Class A	2,985		140,683
	Bristow Group	3,055		145,815
†	Carrizo Oil & Gas	4,850		137,061
	Chevron	15,500		1,662,219
	ConocoPhillips	15,000		1,140,150
	El Paso	29,900		883,545
	EOG Resources	17,500		1,944,249
	Exxon Mobil	9,830		852,556
	Hess	3,980		234,621
†	Key Energy Services	5,500		84,975
	Kinder Morgan	14,600		564,290
	Lufkin Industries	1,595		128,637
	Marathon Oil	35,600		1,128,520
	National Oilwell Varco	1,090		86,622
†	Newfield Exploration	5,100		176,868
	Occidental Petroleum	2,030		193,317
†	Pioneer Drilling	13,675		120,340
†	RigNet	5,620		98,519
†	Rosetta Resources	2,305		112,392
	Schlumberger	6,820		476,923
†	Swift Energy	3,170		92,025
	Williams	37,900		1,167,699
†	WPX Energy	12,633		227,520
				11,891,814
Financials – 3.90%
	AFLAC	5,790		266,282
	Allstate	39,000		1,283,880
	American Equity Investment Life Holding	12,025		153,559
	Ameriprise Financial	4,060		231,948
	Bank of New York Mellon	53,400		1,288,542
†	BBCN Bancorp	7,545		83,976
	BlackRock	1,620		331,938
	Capital One Financial	4,840		269,782
	Cardinal Financial	8,875		100,288
	City Holding	2,645		91,834
	CME Group	4,050		1,171,787
	DCT Industrial Trust	20,960		123,664
	Dime Community Bancshares	7,885		115,200
	DuPont Fabros Technology	5,110		124,940
	EastGroup Properties	3,110		156,184
	Entertainment Properties Trust	3,075		142,619
	Flushing Financial	8,620		116,025
	Home Bancshares	3,945		104,976

(continues) 39

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Financials (continued)
	Home Properties	2,705	$	165,032
	Host Hotels & Resorts	16,340		268,303
@	Independent Bank	3,910		112,334
†	IntercontinentalExchange	11,870		1,631,176
	JPMorgan Chase	14,370		660,733
	LaSalle Hotel Properties	5,935		167,011
	Marsh & McLennan	35,600		1,167,324
	Park National	1,920		132,806
†	Piper Jaffray	3,700		98,494
	Primerica	5,250		132,353
	ProAssurance	1,365		120,270
	Progressive	59,100		1,369,938
	Prosperity Bancshares	2,810		128,698
	Prudential Financial	4,990		316,316
	Sovran Self Storage	3,400		169,427
	State Street	5,610		255,255
	Susquehanna Bancshares	13,700		135,356
	Tanger Factory Outlet Centers	4,280		127,244
†	Texas Capital Bancshares	2,410		83,434
	Travelers	24,120		1,427,905
	Trustmark	4,060		101,419
	Webster Financial	6,030		136,700
	Wells Fargo	18,130		618,958
				15,683,910
Healthcare – 3.88%
	Abbott Laboratories	6,550		401,450
†	Acorda Therapeutics	4,125		109,519
†	Air Methods	1,800		157,050
†	Align Technology	6,815		187,753
	Allergan	18,400		1,755,911
	AmerisourceBergen	4,540		180,147
	Baxter International	21,800		1,303,204
	Cardinal Health	27,500		1,185,525
†	Catalyst Health Solutions	2,285		145,623
†	Celgene	3,980		308,530
	Conmed	3,915		116,941
†	CryoLife	10,675		56,257
†	Express Scripts	6,970		377,635
†	Gilead Sciences	6,670		325,830
†	Greenway Medical Technologies	4,760		72,733
†	Haemonetics	1,940		135,179
†	Incyte	7,475		144,268
	Johnson & Johnson	17,860		1,178,046
	Merck	45,370		1,742,207
†	Merit Medical Systems	9,275		115,196
†	ONYX Pharmaceuticals	4,725		178,038
	Perrigo	7,000		723,170
	Pfizer	84,662		1,918,440
	Quality Systems	3,045		133,158
	Quest Diagnostics	18,800		1,149,620
†	Quidel	7,370		135,387
†	Salix Pharmaceuticals	2,300		120,750
†	Spectrum Pharmaceuticals	9,265		117,017
	Thermo Fisher Scientific	5,810		327,570
	UnitedHealth Group	9,020		531,639
†	Vertex Pharmaceuticals	3,800		155,838
	West Pharmaceutical Services	2,995		127,377
				15,617,008
Industrials – 3.00%
	AAON	5,880		118,717
	Acuity Brands	2,275		142,938
	Applied Industrial Technologies	4,625		190,226
	Barnes Group	5,425		142,732
	Caterpillar	10,540		1,122,721
†	Chart Industries	2,210		162,059
†	Columbus McKinnon	6,275		102,220
†	CRA International	2,700		68,094
	Cummins	1,490		178,860
	Deere	4,030		326,027
	Ducommun	1,885		22,432
	ESCO Technologies	3,080		113,252
†	Esterline Technologies	2,895		206,877
	Expeditors International of Washington	18,200		846,482
	FedEx	2,050		188,518
	Fluor	3,390		203,536
†	FTI Consulting	2,625		98,490
	General Electric	18,430		369,890
	Granite Construction	2,810		80,759
	Honeywell International	5,900		360,195
†	Hub Group Class A	5,055		182,132
	Hunt (J.B.) Transport Services	3,010		163,654
†	Kadant	4,800		114,336
†	KEYW Holding	6,535		50,646
†	Kforce	9,840		146,616
	Lockheed Martin	2,330		209,374
	Manpower	2,730		129,320
	McGrath RentCorp	2,410		77,385
†	MYR Group	5,995		107,071
	Northrop Grumman	18,900		1,154,412
	Raytheon	22,700		1,198,106
	Republic Services	4,140		126,518
	Rockwell Collins	1,650		94,974
	Roper Industries	1,110		110,068
†	RPX	2,475		41,976
†	Tetra Tech	4,250		112,030
†	Titan Machinery	4,805		135,501
	Towers Watson Class A	3,530		233,227
	Triumph Group	4,135		259,099
†	Tutor Perini	3,935		61,307
	Union Pacific	2,380		255,802
	United Stationers	4,965		154,064
	United Technologies	5,730		475,246

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Industrials (continued)
	URS	3,400	$	144,568
	US Ecology	5,205		113,157
	Waste Management	33,100		1,157,176
				12,052,790
Information Technology – 7.82%
†	Adobe Systems	39,700		1,362,107
	Adtran	4,520		140,979
†	Amkor Technology	14,140		86,890
†	Anixter International	2,285		165,731
†	Apple	8,215		4,924,645
†	Applied Micro Circuits	15,415		106,980
†	Cirrus Logic	4,125		98,175
	Cisco Systems	64,370		1,361,426
†	Citrix Systems	1,440		113,630
†	Cognizant Technology Solutions Class A	4,290		330,116
†	comScore	4,165		89,089
†	Demandware	340		10,132
†	eBay	4,680		172,645
†	EMC	15,890		474,793
†	EPAM Systems	3,380		69,358
†	ExlService Holdings	2,610		71,618
†	FARO Technologies	2,845		165,949
†	Google Class A	3,695		2,369,382
	Intel	57,870		1,626,726
	International Business Machines	1,020		212,823
	Intuit	25,000		1,503,250
†	IXYS	8,005		105,666
	j2 Global	4,910		140,819
†	Liquidity Services	2,800		125,440
†	LogMeln	3,590		126,476
	MasterCard Class A	4,600		1,934,484
	Microsoft	25,620		826,245
	Motorola Solutions	23,414		1,190,134
†	NETGEAR	2,620		100,084
†	Nuance Communications	5,400		138,132
	Plantronics	3,455		139,098
†	Polycom	31,100		593,077
†	Progress Software	5,300		125,186
	QUALCOMM	39,730		2,702,434
†	QuinStreet	7,405		77,678
†	Rofin-Sinar Technologies	2,920		77,000
†	Semtech	3,940		112,132
†	SolarWinds	3,040		117,496
†	SS&C Technologies Holdings	7,540		175,908
†	Symantec	11,550		215,985
†	Synaptics	2,230		81,417
	Syntel	1,540		86,240
†	TeleTech Holdings	7,045		113,425
†	Teradata	15,100		1,029,065
†	ValueClick	6,955		137,292
	VeriSign	35,500		1,361,070
†	ViaSat	2,330		112,329
	Visa Class A	17,250		2,035,500
†	Vocus	6,395		84,734
	Xerox	134,800		1,089,184
†	Yahoo	54,500		829,490
				31,439,664
Materials – 0.81%
	Allegheny Technologies	2,640		108,689
	Boise	13,545		111,204
†	Castle (A.M.)	10,735		135,798
	Celanese Class A	5,340		246,601
	Cliffs Natural Resources	2,570		177,998
†	Coeur d’Alene Mines	4,405		104,575
	duPont (E.I.) deNemours	28,400		1,502,361
	Eastman Chemical	4,010		207,277
†	Ferro	16,090		95,575
	Innophos Holdings	2,260		113,271
	Koppers Holdings	2,170		83,675
†	Owens-Illinois	6,020		140,507
=∏†	PT Holdings	35		0
	Silgan Holdings	3,230		142,766
†	TPC Group	2,185		96,599
				3,266,896
Telecommunication Services – 1.20%
	AT&T	56,470		1,763,558
	Atlantic Tele-Network	1,945		70,720
†	Crown Castle International	33,900		1,808,226
	NTELOS Holdings	3,735		77,315
	Verizon Communications	28,500		1,089,555
				4,809,374
Utilities – 0.48%
	AGL Resources	4,020		157,664
	Cleco	3,545		140,559
	Edison International	27,000		1,147,770
	MDU Resources Group	6,790		152,028
	NorthWestern	2,720		96,451
	OGE Energy	3,000		160,500
	UIL Holdings	2,665		92,635
				1,947,607
Total U.S. Markets
	(cost $86,394,185)			121,522,829

§Developed Markets – 17.81%
Consumer Discretionary – 2.66%
	Adidas	2,340		182,688
	Bayerische Motoren Werke	10,171		914,658
	Cie Financiere Richemont Class A	3,680		230,739
	Crown	16,800		151,211
	Don Quijote	24,400		885,692

(continues) 41

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Consumer Discretionary (continued)
	Eutelsat Communications	4,200	$	155,269
	Hennes & Mauritz Class B	4,630		167,539
	Inditex	2,660		254,782
	LVMH Moet Hennessy Louis Vuitton	1,130		194,180
	McDonald’s Holdings Japan	4,600		122,022
	Next	3,700		176,533
	Pirelli & C	12,100		143,944
	PPR	2,903		499,435
	Publicis Groupe	18,720		1,031,967
	Reed Elsevier	16,800		149,133
	Shimamura	1,300		145,413
	Shimano	2,700		162,584
	Sky City Entertainment Group	40,000		129,035
	Sumitomo Rubber Industries	45,741		607,228
	Suzuki Motor	7,200		171,944
	Swatch Group Bearer Shares	420		193,320
	Techtronic Industries	592,000		800,453
	Toyota Motor	44,689		1,927,156
	Yamada Denki	1,970		123,028
	Yamaha	13,400		138,880
	Yue Yuen Industrial Holdings	298,000		1,045,702
				10,704,535
Consumer Staples – 2.51%
	Anheuser-Busch InBev	4,030		294,421
	Aryzta	28,816		1,423,721
	Asahi Group Holdings	7,800		172,705
	British American Tobacco	10,150		511,465
	Carlsberg Class B	11,306		934,213
	Coca-Cola Amatil	69,847		902,130
	Danone	2,380		166,005
	Diageo	11,150		267,954
	Golden Agri-Resources	233,000		145,521
	Greggs	77,575		645,823
	Imperial Tobacco Group	4,620		187,323
	Japan Tobacco	47		264,565
	Kao	7,900		207,269
	Kerry Group Class A	3,675		170,070
	Koninklijke Ahold	13,400		185,679
	L’Oreal	1,760		217,095
	Nestle	11,900		748,776
	Reckitt Benckiser Group	4,050		228,860
	SABMiller	3,750		150,518
	Seven & I Holdings	4,600		136,580
	Tesco	231,684		1,222,870
	Unilever	8,900		293,813
	Unilever CVA	7,550		256,912
	Wesfarmers	3,600		111,936
	Woolworths	10,000		269,088
				10,115,312
Energy – 1.03%
	Aker Solutions	9,100		153,984
	AMEC	8,900		157,725
	BG Group	16,700		386,773
†	EDP Renovaveis	26,100		129,696
	Inpex	21		141,801
†	Lundin Petroleum	6,020		129,028
	Neste Oil	11,250		138,558
	Noble	6,290		235,686
	Petrofac	5,770		160,582
	Santos	11,900		175,514
	Subsea 7	39,998		1,059,308
	Total	21,534		1,098,208
	Woodside Petroleum	5,450		196,497
				4,163,360
Financials – 1.65%
	AIA Group	65,400		239,599
	Alterra Capital Holdings	6,095		140,063
	Assicurazioni Generali	13,720		212,985
	AXA	56,521		936,964
	Banca Carige	62,300		81,757
	City Developments	18,000		162,543
	Daito Trust Construction	1,800		161,551
	Erste Group Bank	5,380		124,056
	Hong Kong Exchanges & Clearing	9,600		161,327
†	Lloyds Banking Group	420,000		225,748
	London Stock Exchange Group	8,200		135,614
	Man Group	50,500		108,881
	Mitsubishi UFJ Financial Group	222,173		1,105,699
	Nordea Bank	98,026		891,226
	Seven Bank	66,000		143,504
	Sony Financial Holdings	8,100		143,830
	Standard Chartered	52,279		1,304,435
	Swire Properties	7,700		19,137
†	UBS	22,850		320,209
				6,619,128
Healthcare – 2.07%
†	Alkermes	10,540		195,517
	Cie Generale d’Optique Essilor International	1,425		127,007
	Coloplast Class B	840		145,443
	Dainippon Sumitomo Pharma	13,900		147,253
	Fresenius	1,410		144,588
	Getinge Class B	5,350		152,351
	GlaxoSmithKline	20,050		447,843
†	ICON ADR	5,010		106,312
	Meda Class A	47,774		455,651
	Miraca Holdings	3,800		148,264
	Novartis	17,583		973,132
	Novo Nordisk ADR	8,800		1,220,648

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Healthcare (continued)
	Novo Nordisk Class B	2,130	$	294,927
	Roche Holding	3,970		690,913
	Sanofi	13,136		1,020,121
	Santen Pharmaceutical	3,200		136,643
	Shire	6,500		210,008
	Teva Pharmaceutical Industries ADR	37,800		1,703,267
				8,319,888
Industrials – 3.06%
	ABB	14,750		302,614
	Aeroports de Paris	1,720		141,165
	Aggreko	4,300		154,747
	Alfa Laval	6,250		128,573
	Alstom	22,930		894,788
	Central Japan Railway	21		173,002
	Cie de Saint-Gobain	14,223		635,160
	Copa Holdings Class A	9,900		784,080
	Deutsche Post	60,936		1,173,093
	DSV	5,900		133,776
	East Japan Railway	17,441		1,097,634
	Elbit Systems	3,870		150,187
	European Aeronautic Defence & Space	5,650		231,366
	FANUC	900		159,594
	Ferrovial	12,300		141,369
	Fraport	2,390		149,650
	Fraser and Neave	26,000		138,595
	G4S	35,800		156,034
	Hoya	7,900		177,401
	IHI	58,000		146,427
	Invensys	42,000		133,682
	ITOCHU	97,549		1,064,042
	Koninklijke Philips Electronics	11,191		226,858
	Kurita Water Industries	4,600		112,687
	Mitsubishi Electric	25,000		221,055
	QR National	35,800		138,308
	Rolls-Royce Holdings	12,000		155,850
	Sandvik	14,300		206,419
	Schneider Electric	2,265		147,985
	Siemens	3,240		326,626
	Societe BIC	1,410		141,485
	Swire Pacific Class A	14,000		156,936
	Teleperformance	42,626		1,217,973
	Vallourec	9,511		602,506
	Volvo Class B	16,500		240,421
	Yamato Holdings	10,500		162,221
				12,324,309
Information Technology – 1.26%
	Accenture Class A	4,840		312,180
	ASM Pacific Technology	10,750		156,842
	ASML Holding	5,170		258,423
	Avago Technologies	4,680		182,380
	Canon	7,100		335,339
†	CGI Group Class A	87,217		1,943,596
	Computershare	15,900		148,216
†	Foxconn International Holdings	188,000		133,878
†	InterXion Holding	5,945		106,713
	Nokia	161,763		880,631
	SAP	4,720		329,597
	Tokyo Electron	2,500		142,991
	Trend Micro	4,600		141,303
				5,072,089
Materials – 2.58%
	Agrium	3,180		274,657
	Air Liquide	1,890		251,959
	Anglo American	6,310		235,862
	Anglo American ADR	10,900		203,500
†	AuRico Gold	105,164		937,204
	BASF	5,180		453,116
	BHP Billiton	13,500		411,878
	BHP Billiton Limited	18,650		668,552
	Israel Chemicals	23,900		272,001
	Johnson Matthey	3,720		140,359
	Kansai Paint	14,000		141,209
	Kazakhmys	9,940		144,359
	Lafarge	8,176		390,197
	Lanxess	1,450		119,856
	Newcrest Mining	7,190		221,028
	Nitto Denko	3,800		153,083
	Rexam	207,664		1,421,926
	Rio Tinto	18,993		1,046,838
	Rio Tinto Limited	1,750		118,542
	Sika Bearer Shares	54		116,889
	Syngenta	680		235,104
	Syngenta ADR	15,300		1,053,099
	Wacker Chemie	1,170		103,156
	Yamana Gold	72,494		1,130,777
	Yara International	2,610		124,495
				10,369,646
Telecommunication Services – 0.51%
	China Mobile ADR	10,925		601,749
	KDDI	25		161,865
	Tele2 Class B	7,000		142,838
	Vodafone Group	311,670		858,418
	Vodafone Group ADR	10,420		288,321
				2,053,191
Utilities – 0.48%
	Centrica	31,900		161,435
	Enagas	6,850		131,825
	National Grid	130,445		1,315,478
	Shikoku Electric Power	4,600		129,635

(continues) 43

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Utilities (continued)
	SSE	8,550	$	181,745
				1,920,118
Total Developed Markets
	(cost $63,051,231)			71,661,576

XEmerging Markets – 8.31%
Consumer Discretionary – 0.62%
†	Ctrip.com International ADR	19,300		417,652
	Focus Media Holding ADR	9,600		241,152
	Grupo Televisa ADR	29,150		614,482
	Hyundai Home Shopping Network	3,813		451,402
	Hyundai Motor	1,251		257,517
	LG Electronics	3,206		234,523
	Mahindra & Mahindra	19,388		266,997
				2,483,725
Consumer Staples – 0.83%
	Brazil Foods ADR	14,960		299,350
	China Mengniu Dairy	64,000		187,494
	Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR	7,100		338,102
	Fomento Economico Mexicano ADR	4,525		372,272
	Hypermarcas	49,300		348,083
@	Lotte Chilsung Beverage	324		348,073
@	Lotte Confectionery	218		319,518
	Tingyi Cayman Islands Holding	95,816		277,000
	Tsingtao Brewery	44,162		238,564
@	United Spirits	22,220		264,853
	Wal-Mart de Mexico Series V	102,496		343,937
				3,337,246
Energy – 1.85%
	Banpu NVDR	22,133		436,486
	CNOOC	472,000		970,063
	CNOOC ADR	1,540		314,607
	Gazprom ADR	47,730		590,420
	LUKOIL ADR	6,800		413,440
	PetroChina ADR	2,300		323,219
	Petroleo Brasileiro SA ADR	52,000		1,381,120
	Petroleo Brasileiro SP ADR	35,100		897,156
	Polski Koncern Naftowy Orlen	14,377		172,729
	PTT	29,991		344,366
#	Reliance Industries GDR 144A	24,258		707,121
	Rosneft Oil GDR	40,600		287,448
	Sasol ADR	6,700		325,888
	YPF ADR	9,600		272,736
				7,436,799
Financials – 1.17%
	Banco Santander Brasil ADR	31,350		287,480
	Bangkok Bank	52,722		316,366
	China Construction Bank	419,449		324,082
=†#@	Etalon Group GDR 144A	16,400		112,340
	ICICI Bank ADR	6,700		233,629
	Industrial & Commercial Bank of China	739,800		477,284
	Itau Unibanco Holding ADR	23,700		454,803
@	KB Financial Group ADR	16,589		608,831
	Samsung Life Insurance	4,543		397,347
=@	Sberbank	153,957		497,928
	Standard Bank Group	34,233		496,980
†@	UEM Land Holdings	463,623		339,190
	VTB Bank GDR	38,300		172,733
				4,718,993
Industrials – 0.39%
	All America Latina Logistica	46,293		231,002
	Gol Linhas Aereas Inteligentes ADR	32,600		219,398
@	KCC	1,759		506,612
	Santos Brasil Participacoes	13,400		234,288
	United Tractors	104,469		377,021
				1,568,321
Information Technology – 1.38%
†	Baidu ADR	2,500		364,425
	Hon Hai Precision Industry	232,377		901,724
	HTC	11,820		239,148
	LG Display ADR	19,300		227,161
	MediaTek	24,005		229,824
	Samsung Electronics	1,197		1,348,330
†	Sina	4,300		279,500
†	Sohu.com	16,400		904,788
	Taiwan Semiconductor Manufacturing	83,069		239,013
	Taiwan Semiconductor Manufacturing ADR	17,700		270,456
	United Microelectronics	928,000		454,455
†	WNS Holdings ADR	6,765		81,518
				5,540,342
Materials – 0.82%
	Anglo American Platinum	3,509		244,281
	ArcelorMittal South Africa	31,132		227,117
	Braskem ADR	14,475		230,587
†	Cemex ADR	44,550		345,712
	Fibria Celulose ADR	36,190		303,634
@	Gerdau	18,000		140,498
	Gerdau ADR	21,600		208,008
	Impala Platinum Holdings	12,046		237,286
	Siam Cement NVDR	10,300		118,602
	Steel Authority of India	67,087		124,357
	Ultratech Cement	11,461		341,396
	Vale ADR	33,525		782,138
				3,303,616

		Number of		Value
		Shares		(U.S. $)
Common Stock (continued)
XEmerging Markets (continued)
Telecommunication Services – 1.25%
	America Movil ADR		14,200	$	352,586
	China Telecom		576,000		318,945
	China Unicom Hong Kong ADR		31,743		533,282
	Chunghwa Telecom ADR		11,060		340,206
	KT ADR		33,850		463,407
	Mobile Telesystems ADR		54,800		1,005,032
	MTN Group		14,778		260,123
	SK Telecom ADR		50,000		695,500
	Telefonica Brasil ADR		11,205		343,209
	Turkcell Iletisim Hizmet ADR		20,650		260,190
	Vodacom Group		32,723		461,365
					5,033,845
Total Emerging Markets
	(cost $32,292,655)				33,422,887

Total Common Stock
	(cost $181,738,071)				226,607,292

Convertible Preferred Stock – 0.17%
	Apache 6.00%
	exercise price $109.12,
	expiration date 8/1/13		1,100		61,094
	Aspen Insurance
	Holdings 5.625%
	exercise price $29.28,
	expiration date 12/31/49		1,957		108,614
	Bank of America 7.25%
	exercise price $50.00,
	expiration date 12/31/49		28		27,412
#	Chesapeake Energy 144A 5.75%
	exercise price $27.94,
	expiration date 12/31/49		81		82,620
	HealthSouth 6.50%
	exercise price $30.50,
	expiration date 12/31/49		147		144,832
	PPL 9.50%
	exercise price $28.80,
	expiration date 7/1/13		2,150		116,831
	SandRidge Energy 8.50%
	exercise price $8.01,
	expiration date 12/31/49		583		69,559
	Wells Fargo 7.50%
	exercise price $156.71,
	expiration date 12/31/49		72		80,402
Total Convertible Preferred Stock
	(cost $726,956)				691,364

Exchange-Traded Funds – 0.03%
	iShares MSCI EAFE
	Growth Index		1,370		80,337
	iShares MSCI Japan Index Fund		4,800		48,864
Total Exchange-Traded Funds
	(cost $124,095)				129,201

		Principal
		Amount°
Agency Asset-Backed Securities – 0.02%
	Fannie Mae
	Grantor Trust
	Series 2003-T4 2A5
	5.407% 9/26/33	USD	63,272		66,790
•	Fannie Mae
	Whole Loan Series
	2002-W11 AV1
	0.582% 11/25/32		11,125		10,273
Total Agency Asset-Backed Securities
	(cost $73,890)				77,063

Agency Collateralized Mortgage Obligations – 0.27%
	Fannie Mae Grantor
	Trust Series 2001-T8
	A2 9.50% 7/25/41		44,574		53,660
	Fannie Mae REMICs
	Series 1996-46 ZA
	7.50% 11/25/26		47,052		53,174
	Series 2003-26 AT
	5.00% 11/25/32		232,377		246,940
	Series 2003-122 AJ
	4.50% 2/25/28		26,230		26,849
	Series 2010-41 PN
	4.50% 4/25/40		120,000		129,440
	Freddie Mac REMICs
	Series 1730 Z
	7.00% 5/15/24		36,309		42,259
	Series 2662 MA
	4.50% 10/15/31		2,826		2,829
	Series 2872 GC
	5.00% 11/15/29		64,973		65,184
	Series 3022 MB
	5.00% 12/15/28		13,170		13,183
	Series 3337 PB
	5.50% 7/15/30		12,439		12,437
	GNMA Series
	2010-113 KE
	4.50% 9/20/40		295,000		324,332
	NCUA Guaranteed
	Notes Series
	2010-C1 A2
	2.90% 10/29/20		100,000		104,926
Total Agency Collateralized
	Mortgage Obligations
	(cost $1,040,081)				1,075,213

Agency Mortgage-Backed Securities – 3.92%
	Fannie Mae 6.50% 8/1/17		30,037		33,103
	Fannie Mae Relocation
	30 yr 5.00% 1/1/36		24,467		26,197
	Fannie Mae S.F. 15 yr
	4.00% 11/1/25		374,007		400,823
	5.00% 9/1/18		37,370		40,563
	5.50% 6/1/22		5,795		6,316

(continues) 45

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Agency Mortgage-Backed Securities (continued)
	Fannie Mae S.F. 15 yr TBA
	3.00% 4/1/27	USD	2,775,000	$	2,872,559
	3.00% 5/1/27		470,000		485,275
	3.50% 4/1/27		1,932,000		2,026,185
	Fannie Mae S.F. 20 yr
	5.50% 8/1/28		44,129		48,151
	Fannie Mae S.F. 30 yr
	3.50% 2/1/41		492,259		506,034
	4.00% 1/1/42		24,867		26,101
	5.00% 12/1/36		161,685		174,835
	5.00% 12/1/37		41,219		44,558
	5.00% 2/1/38		33,324		36,025
	6.00% 2/1/41		284,364		315,104
	6.50% 2/1/36		73,953		83,435
	7.50% 6/1/31		29,816		35,678
	Fannie Mae S.F. 30 yr TBA
	3.50% 4/1/42		1,490,000		1,530,044
	3.50% 5/1/42		1,055,000		1,080,221
	4.00% 5/1/42		1,330,000		1,391,513
	5.50% 5/1/42		500,000		543,906
	6.00% 4/1/42		1,100,000		1,211,891
	6.00% 5/1/42		160,000		176,025
	6.00% 6/1/42		605,000		664,744
•	Freddie Mac ARM
	2.495% 7/1/36		44,820		47,861
	2.56% 4/1/34		14,758		15,742
	Freddie Mac S.F. 15 yr
	5.00% 6/1/18		43,435		46,570
	Freddie Mac S.F. 30 yr
	5.50% 3/1/42		1,170,000		1,274,934
	6.00% 8/1/38		214,215		238,055
	6.00% 10/1/38		301,585		335,148
	7.00% 11/1/33		32,046		37,278
	GNMA I S.F. 30 yr
	7.50% 9/15/31		18,321		20,185
Total Agency Mortgage-Backed
	Securities (cost $15,691,434)				15,775,059

Commercial Mortgage-Backed Securities – 1.34%
#	American Tower Trust
	Series 2007-1A AFX
	144A 5.42% 4/15/37		100,000		106,460
	BAML Commercial
	Mortgage Securities
	•Series 2005-1 A5
	5.171% 11/10/42		95,000		104,479
	Series 2006-4 A4
	5.634% 7/10/46		135,000		152,345
•	Bear Stearns Commercial
	Mortgage Securities
	Series 2004-PWR4
	A3 5.468% 6/11/41		70,000		75,112
	Series 2005-PW10 A4
	5.405% 12/11/40		90,000		100,530
	Series 2005-T20 A4A
	5.145% 10/12/42		75,000		83,452
	Series 2006-PW12
	A4 5.719% 9/11/38		345,000		391,621
#	CFCRE Commercial Mortgage
	Trust Series 2011-C1 A2
	144A 3.759% 4/15/44		100,000		105,183
w	Commercial Mortgage Pass
	Through Certificates
	•Series 2005-C6 A5A
	5.116% 6/10/44		85,000		93,669
	Series 2006-C7 A2
	5.69% 6/10/46		11,029		11,027
	#Series 2010-C1 A1 144A
	3.156% 7/10/46		131,126		136,490
•	Credit Suisse Mortgage
	Capital Certificates
	Series 2006-C1 AAB
	5.419% 2/15/39		57,219		60,420
#	DBUBS Mortgage Trust
	Series 2011-LC1A A3
	144A 5.002% 11/10/46		315,000		354,463
	Goldman Sachs Mortgage
	Securities II
	•Series 2004-GG2
	A5 5.279% 8/10/38		75,000		79,327
	•Series 2004-GG2
	A6 5.396% 8/10/38		220,000		237,355
	Series 2005-GG4
	A4 4.761% 7/10/39		240,000		255,900
	Series 2005-GG4 A4A
	4.751% 7/10/39		120,000		130,135
	#Series 2010-C1 A2 144A
	4.592% 8/10/43		165,000		181,676
	•#Series 2010-C1 C 144A
	5.635% 8/10/43		100,000		105,695
	•#Series 2011-GC3 B 144A
	5.361% 3/10/44		100,000		107,404
•	JPMorgan Chase Commercial
	Mortgage Securities
	Series 2005-LDP3 A4A
	4.936% 8/15/42		125,000		137,248
	Series 2005-LDP5 A4
	5.205% 12/15/44		1,110,000		1,238,103
	LB-UBS Commercial Mortgage
	Trust Series 2004-C1 A4
	4.568% 1/15/31		90,000		94,645
	Morgan Stanley Capital I
	Series 2005-HQ6 A4A
	4.989% 8/13/42		400,000		439,210
	•Series 2007-T27 A4
	5.64% 6/11/42		245,000		281,656
#	OBP Depositor Trust Series
	2010-OBP A 144A
	4.646% 7/15/45		135,000		150,934
#	WF-RBS Commercial
	Mortgage Trust
	Series 2011-C3 A4 144A
	4.375% 3/15/44		180,000		192,917
Total Commercial Mortgage-Backed
	Securities (cost $4,985,643)				5,407,456

		Principal		Value
		Amount°		(U.S. $)
Convertible Bonds – 1.15%
	AAR 1.75%
	exercise price $29.04,
	expiration date 1/1/26	USD	112,000	$	111,160
	Advanced Micro Devices
	5.75% exercise price $20.13,
	expiration date 8/15/12		31,000		31,581
	6.00% exercise price $28.08,
	expiration date 4/30/15		193,000		201,685
#	Alaska Communications
	System Group 144A 6.25%
	exercise price $10.28,
	expiration date 4/27/18		105,000		81,375
	Alcatel-Lucent USA 2.875%
	exercise price $15.35,
	expiration date 6/15/25		85,000		83,938
	Alere 3.00%
	exercise price $43.98,
	expiration date 5/15/16		87,000		87,761
#	Ares Capital 144A 5.75%
	exercise price $19.13,
	expiration date 2/1/16		123,000		128,996
Φ	ArvinMeritor 4.00%
	exercise price $26.73,
	expiration date 2/15/27		174,000		145,943
#	BGC Partners 144A 4.50%
	exercise price $9.84,
	expiration date 7/13/16		55,000		55,481
	Chesapeake Energy 2.25%
	exercise price $85.81,
	expiration date 12/15/38		70,000		56,963
#	Clearwire Communications
	144A 8.25%
	exercise price $7.08,
	expiration date 11/30/40		104,000		81,510
	#Corporate Office
	Properties 144A 4.25%
	exercise price $48.00,
	expiration date 4/12/30		171,000		167,366
	Dendreon 2.875%
	exercise price $51.24,
	expiration date 1/13/16		50,000		40,250
	Equinix 4.75%
	exercise price $84.32,
	expiration date 6/15/16		59,000		118,295
	Euronet Worldwide 3.50%
	exercise price $40.48,
	expiration date 10/15/25		60,000		60,525
#	Gaylord Entertainment
	144A 3.75%
	exercise price $27.25,
	expiration date 9/29/14		68,000		87,550
Φ	General Cable 4.50%
	exercise price $36.75,
	expiration date 11/15/29		69,000		73,054
	Health Care REIT 3.00%
	exercise price $51.08,
	expiration date 11/30/29		76,000		87,210
	Helix Energy
	Solutions Group 3.25%
	exercise price $25.02,
	expiration date 3/12/32		119,000		126,140
Φ	Hologic 2.00%
	exercise price $31.17,
	expiration date 2/27/42		24,000		23,970
#	Illumina 144A 0.25%
	exercise price $83.55,
	expiration date 3/11/16		44,000		42,405
	Intel 2.95%
	exercise price $29.96,
	expiration date 12/15/35		65,000		75,075
	James River Coal 4.50%
	exercise price $25.78,
	expiration date 12/1/15		55,000		31,075
	Jefferies Group 3.875%
	exercise price $37.94,
	expiration date 11/1/29		143,000		136,565
	L-3 Communications
	Holdings 3.00%
	exercise price $96.48,
	expiration date 8/1/35		134,000		131,153
	Leap Wireless
	International 4.50%
	exercise price $93.21,
	expiration date 7/15/14		150,000		143,812
#	Lexington Realty
	Trust 144A 6.00%
	exercise price $7.01,
	expiration date 1/11/30		80,000		110,500
	LifePoint Hospitals 3.50%
	exercise price $51.79,
	expiration date 5/14/14		160,000		167,999
	Linear Technology 3.00%
	exercise price $43.39,
	expiration date 5/1/27		201,000		214,818
	Live Nation
	Entertainment 2.875%
	exercise price $27.14,
	expiration date 7/14/27		228,000		219,165
	MGM Resorts
	International 4.25%
	exercise price $18.58,
	expiration date 4/10/15		50,000		53,063
	Mylan 3.75%
	exercise price $13.32,
	expiration date 9/10/15		81,000		152,077
	National Retail
	Properties 5.125%
	exercise price $25.37,
	expiration date 6/15/28		140,000		159,950
#	Nuance Communications
	144A 2.75%
	exercise price $32.30,
	expiration date 11/1/31		33,000		37,455

(continues) 47

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Convertible Bonds (continued)
	NuVasive
	2.25%
	exercise price $44.74,
	expiration date 3/15/13	USD	48,000	$	47,640
	2.75%
	exercise price $42.13,
	expiration date 6/30/17		93,000		79,748
#	Owens-Brockway Glass
	Container 144A 3.00%
	exercise price $47.47,
	expiration date 5/28/15		215,000		211,506
	Pantry 3.00%
	exercise price $50.09,
	expiration date 11/15/12		153,000		153,956
	Peabody Energy 4.75%
	exercise price $58.19,
	expiration date 12/15/41		17,000		16,235
	PHH 4.00%
	exercise price $25.80,
	expiration date 9/1/14		173,000		166,946
	Rovi 2.625%
	exercise price $47.36,
	expiration date 2/10/40		85,000		89,569
	SanDisk 1.50%
	exercise price $52.37,
	expiration date 8/11/17		96,000		114,120
	SBA Communications 4.00%
	exercise price $30.38,
	expiration date 10/1/14		29,000		51,113
	Transocean 1.50%
	exercise price $158.97,
	expiration date 12/15/37		51,000		50,745
	VeriSign 3.25%
	exercise price $34.37,
	expiration date 8/15/37		97,000		124,402
Total Convertible Bonds
	(cost $4,398,848)				4,631,845

Corporate Bonds – 20.16%
Banking – 2.38%
	Abbey National Treasury
	Services 4.00% 4/27/16		165,000		163,854
	AgriBank 9.125% 7/15/19		325,000		412,925
	Bank of America
	3.75% 7/12/16		120,000		120,716
	3.875% 3/22/17		175,000		176,163
	5.70% 1/24/22		305,000		323,477
	BB&T
	3.95% 3/22/22		370,000		371,719
	5.25% 11/1/19		219,000		240,739
•	BB&T Capital Trust IV
	6.82% 6/12/57		90,000		91,238
	Capital One Capital V
	10.25% 8/15/39		135,000		139,388
	City National
	5.25% 9/15/20		190,000		191,373
	Cooperatieve Centrale
	Raiffeisen-Boerenleenbank
	3.875% 2/8/22		235,000		227,721
	Export-Import Bank of Korea
	5.00% 4/11/22		270,000		286,199
	Fifth Third Bancorp
	3.50% 3/15/22		290,000		283,948
•	Fifth Third Capital Trust IV
	6.50% 4/15/37		330,000		330,000
•#	HBOS Capital Funding 144A
	6.071% 6/29/49		140,000		100,450
#	HSBC Bank 144A
	4.75% 1/19/21		300,000		317,754
	HSBC Holdings 4.00% 3/30/22		640,000		635,675
	JPMorgan Chase
	4.50% 1/24/22		200,000		208,480
	JPMorgan Chase Bank
	6.00% 10/1/17		285,000		326,487
	JPMorgan Chase Capital XXV
	6.80% 10/1/37		175,000		176,855
	KeyBank 5.45% 3/3/16		290,000		318,899
	KeyCorp 5.10% 3/24/21		165,000		182,194
	Korea Development Bank
	8.00% 1/23/14		100,000		110,481
	Lloyds TSB Bank
	4.20% 3/28/17		360,000		363,108
•	National City Bank
	0.845% 6/7/17		250,000		228,226
	PNC Funding
	3.30% 3/8/22		115,000		114,007
	5.125% 2/8/20		530,000		601,323
•#	PNC Preferred Funding Trust II
	144A 1.696% 3/31/49		300,000		230,481
•	SunTrust Bank 0.782% 8/24/15		125,000		114,181
	SunTrust Banks 3.50% 1/20/17		100,000		102,112
	SVB Financial Group
	5.375% 9/15/20		305,000		330,415
	US Bank 6.30% 2/4/14		570,000		624,372
•	USB Capital IX 3.50% 10/29/49		290,000		223,918
	Wachovia
	•0.937% 10/15/16		130,000		120,965
	5.25% 8/1/14		115,000		123,847
	Wachovia Bank 5.60% 3/15/16		265,000		295,195
	Wells Fargo 3.50% 3/8/22		170,000		167,708
	Zions Bancorporation
	7.75% 9/23/14		182,000		199,403
					9,575,996
Basic Industry – 2.31%
	AK Steel 7.625% 5/15/20		125,000		121,250
	Alcoa
	5.40% 4/15/21		375,000		388,184
	6.75% 7/15/18		270,000		308,169
#	Algoma Acquisition 144A
	9.875% 6/15/15		77,000		70,455

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Basic Industry (continued)
#	Anglo American
	Capital 144A
	2.625% 4/3/17	USD	470,000	$	471,051
	ArcelorMittal
	6.25% 2/25/22		260,000		263,367
	9.85% 6/1/19		200,000		240,976
#	Barrick Gold 144A
	3.85% 4/1/22		440,000		442,655
	5.25% 4/1/42		45,000		45,415
	Barrick North
	America Finance
	4.40% 5/30/21		305,000		322,095
	BHP Billiton Finance USA
	3.25% 11/21/21		115,000		116,300
#	Cemex Espana
	Luxembourg 144A
	9.25% 5/12/20		75,000		69,563
	Century Aluminum
	8.00% 5/15/14		114,000		117,135
	CF Industries 7.125% 5/1/20		111,000		132,506
#	CODELCO 144A
	3.75% 11/4/20		320,000		329,438
	Compass Minerals International
	8.00% 6/1/19		90,000		98,100
	Domtar 4.40% 4/1/22		145,000		143,573
	Dow Chemical 8.55% 5/15/19		776,000		1,018,389
#	FMG Resources August 2006
	144A 6.875% 4/1/22		165,000		161,288
	Georgia-Pacific
	#144A 5.40% 11/1/20		60,000		67,093
	8.00% 1/15/24		550,000		701,570
	Headwaters 7.625% 4/1/19		170,000		166,175
	Hexion U.S. Finance
	8.875% 2/1/18		95,000		98,800
	International Paper
	4.75% 2/15/22		455,000		480,412
	9.375% 5/15/19		45,000		59,538
#	LyondellBasell
	Industries 144A
	5.75% 4/15/24		210,000		210,000
#	MacDermid 144A
	9.50% 4/15/17		26,000		27,105
	Mohawk Industries
	6.375% 1/15/16		37,000		41,070
	Momentive Performance
	Materials 11.50% 12/1/16		75,000		62,625
#	Murray Energy 144A
	10.25% 10/15/15		97,000		94,818
	Norcraft 10.50% 12/15/15		82,000		72,365
	Nortek 8.50% 4/15/21		150,000		149,250
	Novelis 8.75% 12/15/20		120,000		132,000
	Ply Gem Industries
	13.125% 7/15/14		72,000		73,080
	Rayonier 3.75% 4/1/22		180,000		176,998
	Rio Tinto Finance USA
	3.50% 3/22/22		595,000		597,336
	Ryerson
	•7.922% 11/1/14		8,000		7,560
	12.00% 11/1/15		120,000		123,600
	Smurfit Kappa Funding
	7.75% 4/1/15		87,000		87,870
	Steel Dynamics
	7.75% 4/15/16		22,000		22,935
	Teck Resources
	3.00% 3/1/19		100,000		98,840
	5.20% 3/1/42		260,000		247,577
	Vale Overseas
	4.375% 1/11/22		636,000		642,008
					9,300,534
Brokerage – 0.22%
•	Bear Stearns 4.923% 12/7/12	AUD	430,000		443,072
	Jefferies Group
	6.25% 1/15/36	USD	35,000		31,938
	6.45% 6/8/27		75,000		74,625
	Lazard Group 6.85% 6/15/17		300,000		330,178
					879,813
Capital Goods – 0.50%
	Anixter 10.00% 3/15/14		3,000		3,285
	Berry Plastics
	9.75% 1/15/21		125,000		137,188
	Koninklijke Philips Electronics
	3.75% 3/15/22		190,000		191,521
	5.00% 3/15/42		335,000		335,605
	Kratos Defense &
	Security Solutions
	10.00% 6/1/17		60,000		65,250
#	Plastipak Holdings 144A
	10.625% 8/15/19		67,000		76,715
	Pregis 12.375% 10/15/13		129,000		129,803
	RBS Global 11.75% 8/1/16		77,000		81,716
#	Reynolds Group Issuer 144A
	9.00% 4/15/19		330,000		326,700
	Stanley Black & Decker
	3.40% 12/1/21		165,000		167,487
	Trimas 9.75% 12/15/17		67,000		74,370
#	URS 144A 5.00% 4/1/22		200,000		198,083
#	Votorantim Cimentos
	144A 7.25% 4/5/41		200,000		205,000
					1,992,723
Consumer Cyclical – 1.16%
	American Axle &
	Manufacturing
	7.875% 3/1/17		152,000		157,320
	Chrysler Group 8.25% 6/15/21		200,000		203,000
	CKE Restaurants
	11.375% 7/15/18		98,000		112,455

(continues) 49

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Consumer Cyclical (continued)
	Dave & Buster’s
	11.00% 6/1/18	USD	35,000	$	37,625
#	Delphi 144A 6.125% 5/15/21		135,000		144,450
	Ford Motor 7.45% 7/16/31		263,000		322,833
	Ford Motor Credit
	5.00% 5/15/18		215,000		223,247
	12.00% 5/15/15		185,000		229,863
#	FUEL Trust 144A
	3.984% 6/15/16		200,000		203,104
	Hanesbrands
	6.375% 12/15/20		115,000		118,738
	Historic TW 6.875% 6/15/18		450,000		552,288
	Host Hotels & Resorts
	#144A 5.25% 3/15/22		95,000		95,000
	5.875% 6/15/19		65,000		68,819
	6.00% 11/1/20		85,000		90,525
	#144A 6.00% 10/1/21		118,000		126,260
	Ingles Markets
	8.875% 5/15/17		72,000		78,300
	Macy’s Retail Holdings
	3.875% 1/15/22		370,000		371,812
	5.90% 12/1/16		91,000		104,535
	Meritor 8.125% 9/15/15		167,000		177,020
	New Albertsons
	7.25% 5/1/13		13,000		13,650
	OSI Restaurant Partners
	10.00% 6/15/15		75,000		78,000
#	Rite Aid 144A 9.25% 3/15/20		35,000		35,438
#	Sealy Mattress 144A
	10.875% 4/15/16		21,000		22,838
	Target 2.90% 1/15/22		210,000		207,997
	Tomkins 9.00% 10/1/18		126,000		140,175
	Tops Holding
	10.125% 10/15/15		44,000		47,190
	Wyndham Worldwide
	4.25% 3/1/22		365,000		358,533
	5.625% 3/1/21		115,000		124,028
	5.75% 2/1/18		180,000		200,693
					4,645,736
Consumer Non-Cyclical – 2.05%
	Accellent 8.375% 2/1/17		70,000		70,700
#	AMGH Merger Sub 144A
	9.25% 11/1/18		105,000		109,725
#	Aristotle Holding 144A
	2.65% 2/15/17		160,000		161,992
	3.50% 11/15/16		75,000		78,425
	3.90% 2/15/22		90,000		91,153
	4.75% 11/15/21		65,000		69,699
	Biomet
	11.625% 10/15/17		67,000		72,779
	PIK 10.375% 10/15/17		57,000		61,703
	Bio-Rad Laboratories
	4.875% 12/15/20		40,000		41,128
	8.00% 9/15/16		52,000		57,980
	Boston Scientific
	6.00% 1/15/20		220,000		252,914
	CareFusion 6.375% 8/1/19		380,000		442,213
	Celgene 3.95% 10/15/20		235,000		239,728
	Community Health Systems
	#144A 8.00% 11/15/19		50,000		52,000
	8.875% 7/15/15		10,000		10,375
	Del Monte 7.625% 2/15/19		120,000		120,000
	General Mills 3.15% 12/15/21		105,000		105,314
#	Heineken 144A
	3.40% 4/1/22		310,000		308,363
	Jarden
	6.125% 11/15/22		65,000		68,413
	7.50% 1/15/20		25,000		27,250
#	Kinetic Concepts 144A
	12.50% 11/1/19		120,000		114,000
•	Kraft Foods 1.457% 7/10/13		305,000		307,060
	Kroger 2.20% 1/15/17		565,000		574,598
	Medtronic 3.125% 3/15/22		185,000		186,269
#	Multiplan 144A
	9.875% 9/1/18		135,000		146,475
	NBTY 9.00% 10/1/18		175,000		193,594
	PepsiCo 2.75% 3/5/22		255,000		248,641
#	Pernod-Ricard 144A
	2.95% 1/15/17		150,000		151,688
	5.50% 1/15/42		150,000		151,350
	Quest Diagnostics
	4.70% 4/1/21		330,000		357,857
	Radnet Management
	10.375% 4/1/18		52,000		52,000
#	SABMiller Holdings 144A
	2.45% 1/15/17		685,000		694,371
	3.75% 1/15/22		885,000		902,200
	Safeway 4.75% 12/1/21		215,000		222,691
	Sara Lee 4.10% 9/15/20		130,000		131,919
	Scotts Miracle-Gro
	6.625% 12/15/20		50,000		52,875
	Teva Pharmaceutical
	Finance IV
	3.65% 11/10/21		95,000		96,360
	Tyson Foods 10.50% 3/1/14		66,000		76,890
#	Woolworths 144A
	3.15% 4/12/16		85,000		88,168
	4.55% 4/12/21		355,000		382,398
	Yale University
	2.90% 10/15/14		230,000		243,296
	Zimmer Holdings
	3.375% 11/30/21		235,000		236,166
	4.625% 11/30/19		180,000		198,922
					8,251,642

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Energy – 3.45%
	AmeriGas Finance
	6.75% 5/20/20	USD	95,000	$	96,663
	7.00% 5/20/22		30,000		30,675
	Antero Resources Finance
	9.375% 12/1/17		44,000		47,850
	Berry Petroleum
	10.25% 6/1/14		10,000		11,600
#	BG Energy Capital 144A
	4.00% 10/15/21		385,000		402,294
#	Canadian Oil Sands
	144A 4.50% 4/1/22		195,000		196,828
	Chesapeake Energy
	6.125% 2/15/21		90,000		89,550
	6.50% 8/15/17		20,000		21,400
	6.625% 8/15/20		55,000		56,238
	Comstock Resources
	7.75% 4/1/19		50,000		46,750
#	Continental Resources 144A
	5.00% 9/15/22		90,000		90,563
	Copano Energy
	7.75% 6/1/18		57,000		59,993
	Ecopetrol 7.625% 7/23/19		163,000		202,528
	El Paso Pipeline
	Partners Operating
	6.50% 4/1/20		225,000		252,562
•	Enbridge Energy Partners
	8.05% 10/1/37		350,000		380,648
	Encana 3.90% 11/15/21		410,000		399,926
	Energy Transfer Partners
	4.65% 6/1/21		270,000		275,580
	6.05% 6/1/41		60,000		60,753
	9.70% 3/15/19		105,000		134,420
#	ENI 144A 4.15% 10/1/20		250,000		248,356
	Enterprise Products Operating
	•7.034% 1/15/68		345,000		371,317
	9.75% 1/31/14		195,000		223,869
	Forest Oil 7.25% 6/15/19		98,000		96,285
#	Helix Energy Solutions Group
	144A 9.50% 1/15/16		72,000		75,510
#	Hercules Offshore 144A
	10.50% 10/15/17		155,000		163,138
#	Hilcorp Energy I 144A
	7.625% 4/15/21		65,000		70,525
	HollyFrontier 9.875% 6/15/17		82,000		91,840
	Husky Energy 3.95% 4/15/22		540,000		544,750
	Inergy 6.875% 8/1/21		65,000		62,888
	Kinder Morgan Energy Partners
	3.95% 9/1/22		360,000		357,176
	9.00% 2/1/19		280,000		359,143
	Linn Energy
	#144A 6.25% 11/1/19		25,000		24,281
	#144A 6.50% 5/15/19		35,000		34,475
	8.625% 4/15/20		57,000		61,703
	Lukoil International Finance
	6.125% 11/9/20		250,000		266,250
#	NFR Energy 144A
	9.75% 2/15/17		92,000		79,580
	NiSource Finance
	4.45% 12/1/21		60,000		62,707
	5.80% 2/1/42		190,000		203,509
	Noble Holding International
	3.95% 3/15/22		230,000		230,300
	5.25% 3/15/42		510,000		508,548
	Pemex Project Funding
	Master Trust
	6.625% 6/15/35		110,000		126,500
	Petrobras International Finance
	3.50% 2/6/17		200,000		205,494
	5.375% 1/27/21		644,000		696,639
	5.875% 3/1/18		25,000		28,166
	Petrohawk Energy
	7.25% 8/15/18		220,000		252,725
	Petroleos de Venezuela
	9.00% 11/17/21		1,034,000		842,709
	12.75% 2/17/22		129,000		129,323
	Petroleum Development
	12.00% 2/15/18		89,000		97,010
	Plains All American Pipeline
	3.65% 6/1/22		340,000		334,490
	8.75% 5/1/19		290,000		378,247
	Pride International
	6.875% 8/15/20		590,000		720,667
	Quicksilver Resources
	9.125% 8/15/19		75,000		73,500
	Range Resources
	5.00% 8/15/22		125,000		123,594
#	Ras Laffan Liquefied
	Natural Gas III 144A
	5.832% 9/30/16		128,007		137,608
#	Samson Investment 144A
	9.75% 2/15/20		35,000		35,481
	SandRidge Energy
	7.50% 3/15/21		40,000		39,600
#	Southwestern Energy 144A
	4.10% 3/15/22		190,000		188,720
•	TransCanada PipeLines
	6.35% 5/15/67		505,000		522,538
	Transocean
	5.05% 12/15/16		165,000		176,888
	6.375% 12/15/21		495,000		557,983
	Weatherford International
	4.50% 4/15/22		85,000		84,877
	9.625% 3/1/19		205,000		272,048
	Williams
	7.75% 6/15/31		44,000		53,746
	8.75% 3/15/32		50,000		66,093

(continues) 51

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Energy (continued)
	Williams Partners
	4.00% 11/15/21	USD	170,000	$	172,123
	7.25% 2/1/17		240,000		289,115
#	Woodside Finance
	144A 8.75% 3/1/19		220,000		279,578
					13,878,433
Financials – 0.85%
#	CDP Financial 144A
	4.40% 11/25/19		250,000		270,310
	5.60% 11/25/39		250,000		293,765
	E Trade Financial
	12.50% 11/30/17		172,000		201,025
	General Electric Capital
	4.65% 10/17/21		375,000		399,891
	5.50% 2/1/17	NZD	130,000		108,755
	6.00% 8/7/19	USD	595,000		695,869
#	Hyundai Capital Services
	144A 3.50% 9/13/17		200,000		200,716
•#	ILFC E-Capital Trust I 144A
	5.03% 12/21/65		250,000		167,540
	International Lease Finance
	5.875% 4/1/19		70,000		67,747
	6.25% 5/15/19		138,000		136,251
	8.25% 12/15/20		245,000		270,164
	8.75% 3/15/17		50,000		55,750
#	IPIC GMTN 144A
	5.50% 3/1/22		200,000		206,750
#	Nuveen Investments 144A
	10.50% 11/15/15		135,000		139,894
	Syngenta Finance
	3.125% 3/28/22		190,000		191,659
					3,406,086
Insurance – 0.48%
	American International Group
	5.85% 1/16/18		25,000		27,255
	8.25% 8/15/18		145,000		174,503
•	Chubb 6.375% 3/29/67		220,000		228,250
	Coventry Health Care
	5.45% 6/15/21		360,000		394,792
#	Highmark 144A
	4.75% 5/15/21		105,000		105,357
	6.125% 5/15/41		40,000		41,710
•	ING Groep 5.775% 12/29/49		110,000		95,150
•#	Liberty Mutual Group 144A
	7.00% 3/15/37		70,000		63,350
	MetLife 6.40% 12/15/36		20,000		19,700
#	MetLife Capital Trust X
	144A 9.25% 4/8/38		400,000		484,001
	Prudential Financial
	3.875% 1/14/15		55,000		57,953
	6.00% 12/1/17		105,000		122,483
=‡w@#	Twin Reefs Pass-Through Trust
	144A 0.00% 12/31/49		200,000		0
	•XL Group 6.50% 12/31/49		140,000		119,350
					1,933,854
Media – 0.57%
	Affinion Group
	7.875% 12/15/18		120,000		109,800
	CBS 3.375% 3/1/22		390,000		377,258
	CCO Holdings
	7.00% 1/15/19		25,000		26,625
	7.375% 6/1/20		20,000		21,800
	Clear Channel
	Communications
	9.00% 3/1/21		70,000		63,350
#	Clear Channel
	Worldwide 144A
	7.625% 3/15/20		100,000		98,350
	DISH DBS 7.875% 9/1/19		73,000		84,315
	Interpublic Group
	4.00% 3/15/22		270,000		264,923
#	Nara Cable Funding 144A
	8.875% 12/1/18		200,000		191,000
	Nielsen Finance
	11.50% 5/1/16		21,000		24,308
	11.625% 2/1/14		2,000		2,320
#	Sinclair Television Group 144A
	9.25% 11/1/17		72,000		80,460
#	Sirius XM Radio 144A
	8.75% 4/1/15		145,000		165,300
	Time Warner Cable
	5.50% 9/1/41		195,000		205,027
	8.25% 4/1/19		160,000		204,908
#	Univision Communications
	144A 6.875% 5/15/19		125,000		127,344
#	UPCB Finance III 144A
	6.625% 7/1/20		150,000		153,750
	Videotron 6.375% 12/15/15		3,000		3,079
#	XM Satellite Radio 144A
	13.00% 8/1/13		74,000		84,083
					2,288,000
Real Estate – 0.94%
	Alexandria Real Estate
	Equities 4.60% 4/1/22		255,000		250,112
	American Tower
	4.70% 3/15/22		80,000		80,802
	5.90% 11/1/21		500,000		552,181
	Brandywine Operating
	Partnership
	4.95% 4/15/18		190,000		193,996
	Developers Diversified Realty
	4.75% 4/15/18		95,000		98,541
	7.50% 4/1/17		40,000		45,432
	7.875% 9/1/20		242,000		286,656
	9.625% 3/15/16		72,000		87,245
	Digital Realty Trust
	5.25% 3/15/21		455,000		469,973

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Real Estate (continued)
	Health Care REIT
	4.125% 4/1/19	USD	365,000	$	362,636
	5.25% 1/15/22		300,000		314,404
#	Qatari Diar Finance 144A
	5.00% 7/21/20		113,000		121,616
	Regency Centers
	4.80% 4/15/21		80,000		82,706
	5.875% 6/15/17		100,000		111,962
	UDR 4.625% 1/10/22		385,000		394,892
•#	USB Realty 144A
	1.719% 12/22/49		100,000		75,856
#	WEA Finance 144A
	4.625% 5/10/21		255,000		258,433
					3,787,443
Services – 0.51%
	Ameristar Casinos
	7.50% 4/15/21		135,000		142,256
	Beazer Homes USA
	9.125% 5/15/19		75,000		64,875
	Casella Waste Systems
	11.00% 7/15/14		50,000		53,750
#	Equinox Holdings 144A
	9.50% 2/1/16		18,000		19,339
	FTI Consulting 6.75% 10/1/20		50,000		53,813
	Geo Group 6.625% 2/15/21		75,000		78,844
	Iron Mountain 7.75% 10/1/19		30,000		32,925
	M/I Homes 8.625% 11/15/18		110,000		110,550
	Marina District Finance
	9.875% 8/15/18		45,000		40,613
	MGM Resorts International
	11.375% 3/1/18		262,000		312,762
	Mobile Mini 6.875% 5/1/15		64,000		64,960
	PHH 9.25% 3/1/16		270,000		275,737
	Pinnacle Entertainment
	8.75% 5/15/20		152,000		166,820
	Royal Caribbean Cruises
	7.00% 6/15/13		26,000		27,300
	RSC Equipment Rental
	10.25% 11/15/19		91,000		102,375
	Ryland Group 8.40% 5/15/17		72,000		79,920
	Standard Pacific
	10.75% 9/15/16		95,000		109,725
#	United Air Lines 144A
	12.00% 11/1/13		115,000		122,475
	Western Union 3.65% 8/22/18		145,000		155,248
	Wynn Las Vegas
	7.75% 8/15/20		25,000		27,594
					2,041,881
Technology – 1.03%
	Amkor Technology
	7.375% 5/1/18		65,000		69,956
	Avaya
	#144A 7.00% 4/1/19		135,000		136,013
	9.75% 11/1/15		125,000		123,750
	PIK 10.125% 11/1/15		45,000		44,775
	Broadcom 2.70% 11/1/18		240,000		244,397
	CDW 12.535% 10/12/17		75,000		81,844
	Cisco Systems 4.45% 1/15/20		630,000		716,209
	First Data
	9.875% 9/24/15		90,000		90,900
	11.25% 3/31/16		135,000		122,850
	GXS Worldwide
	9.75% 6/15/15		221,000		216,028
	Hewlett-Packard
	4.05% 9/15/22		525,000		523,967
	Jabil Circuit 7.75% 7/15/16		38,000		43,510
	National Semiconductor
	6.60% 6/15/17		345,000		426,086
#	Seagate Technology
	International 144A
	10.00% 5/1/14		181,000		205,435
	Symantec 4.20% 9/15/20		165,000		168,614
	Tyco Electronics Group
	3.50% 2/3/22		370,000		361,457
#	Unisys 144A 12.75% 10/15/14		40,000		44,800
	Xerox
	4.50% 5/15/21		345,000		355,578
	6.35% 5/15/18		140,000		162,645
					4,138,814
Telecommunications – 1.55%
	America Movil SAB
	5.00% 3/30/20		100,000		111,700
#	Brasil Telecom 144A
	5.75% 2/10/22		216,000		222,750
	9.75% 9/15/16		593,000		337,808
	CenturyLink 5.80% 3/15/22		195,000		190,774
#	Clearwire Communications
	144A 12.00% 12/1/15		224,000		221,760
	Cricket Communications
	7.75% 10/15/20		200,000		197,250
#	Crown Castle Towers 144A
	4.883% 8/15/20		770,000		793,630
#	Deutsche Telekom
	International Finance
	144A 2.25% 3/6/17		505,000		500,408
#	DIRECTV Holdings 144A
	3.80% 3/15/22		605,000		597,919
	5.15% 3/15/42		105,000		102,674
	Frontier Communications
	6.25% 1/15/13		4,000		4,120
	Intelsat Jackson Holdings
	7.25% 10/15/20		130,000		136,988
	Level 3 Financing
	10.00% 2/1/18		112,000		123,200
	MetroPCS Wireless
	6.625% 11/15/20		55,000		54,794
	NII Capital 10.00% 8/15/16		134,000		152,425
	PAETEC Holding
	8.875% 6/30/17		67,000		73,030

(continues) 53

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Telecommunications (continued)
	Qwest
	6.75% 12/1/21	USD	150,000	$	167,813
	8.375% 5/1/16		257,000		308,380
	Sprint Capital 8.75% 3/15/32		72,000		62,100
	Sprint Nextel
	6.00% 12/1/16		60,000		53,850
	8.375% 8/15/17		65,000		63,050
	#144A 9.125% 3/1/17		125,000		124,688
	Telefonica Emisiones
	5.462% 2/16/21		10,000		9,738
	6.421% 6/20/16		280,000		298,776
	Telesat Canada
	11.00% 11/1/15		214,000		229,515
	12.50% 11/1/17		44,000		49,390
	Virgin Media Secured Finance
	6.50% 1/15/18		490,000		534,712
#	Vivendi 144A 6.625% 4/4/18		240,000		269,950
	West 7.875% 1/15/19		45,000		48,150
#	Wind Acquisition Finance 144A
	11.75% 7/15/17		160,000		158,400
	Windstream 8.125% 8/1/13		48,000		51,360
					6,251,102
Transportation – 0.28%
#	Brambles USA 144A
	3.95% 4/1/15		345,000		356,501
	Burlington Northern Santa Fe
	4.40% 3/15/42		375,000		355,958
	5.65% 5/1/17		30,000		34,948
	CSX 4.75% 5/30/42		55,000		53,550
#	ERAC USA Finance 144A
	2.75% 3/15/17		50,000		50,006
	5.25% 10/1/20		260,000		282,365
					1,133,328
Utilities – 1.88%
	AES 8.00% 6/1/20		75,000		86,438
	Ameren Illinois
	9.75% 11/15/18		480,000		651,081
#	American Transmission
	Systems 144A
	5.25% 1/15/22		365,000		412,878
	Baltimore Gas & Electric
	3.50% 11/15/21		335,000		339,286
#	Calpine 144A 7.875% 7/31/20		85,000		92,863
	CenterPoint Energy
	5.95% 2/1/17		210,000		238,666
#	Centrais Eletricas
	Brasileiras 144A
	5.75% 10/27/21		664,000		730,067
#	China Resources Gas Group
	144A 4.50% 4/5/22		200,000		196,947
	CMS Energy
	4.25% 9/30/15		125,000		130,318
	6.25% 2/1/20		550,000		603,546
	ComEd Financing III
	6.35% 3/15/33		160,000		154,372
	Commonwealth Edison
	3.40% 9/1/21		419,000		432,886
	GenOn Energy
	9.875% 10/15/20		60,000		54,900
	Great Plains Energy
	5.292% 6/15/22		450,000		481,080
	Ipalco Enterprises
	5.00% 5/1/18		100,000		100,000
	Jersey Central Power & Light
	5.625% 5/1/16		65,000		73,098
	LG&E & KU Energy
	3.75% 11/15/20		145,000		144,646
	#144A 4.375% 10/1/21		245,000		252,333
•	NextEra Energy Capital
	Holdings 6.35% 10/1/66		195,000		199,093
	NRG Energy 7.875% 5/15/21		85,000		82,025
	PacifiCorp 2.95% 2/1/22		200,000		197,584
	Pennsylvania Electric
	5.20% 4/1/20		190,000		206,235
•	PPL Capital Funding
	6.70% 3/30/67		85,000		85,089
	Public Service Company of
	Oklahoma 5.15% 12/1/19		280,000		314,931
	Puget Energy 6.00% 9/1/21		85,000		90,623
•	Puget Sound Energy
	6.974% 6/1/67		344,000		353,058
	SCANA 4.125% 2/1/22		195,000		195,490
	Southwest Gas 3.875% 4/1/22		255,000		260,659
•	Wisconsin Energy
	6.25% 5/15/67		405,000		417,604
					7,577,796
Total Corporate Bonds
	(cost $78,117,854)				81,083,181

Municipal Bond – 0.06%
	Oregon State of Taxable
	Pension 5.892% 6/1/27		200,000		242,966
Total Municipal Bond
	(cost $200,000)				242,966

Non-Agency Asset-Backed Securities – 0.52%
•	Ally Master Owner Trust
	Series 2011-1 A1
	2.742% 1/15/16		195,000		196,660
•	American Express Credit
	Account Master
	Trust Series 2010-1 B
	0.842% 11/16/15		100,000		100,158
#	Avis Budget Rental Car
	Funding AESOP Series
	2011-2A A 144A
	2.37% 11/20/14		120,000		121,757

		Principal		Value
		Amount°		(U.S. $)
Non-Agency Asset-Backed Securities (continued)
#	Cabela’s Master Credit Card
	Trust Series 2012-1A A1
	144A 1.63% 2/18/20	USD	165,000	$	163,957
	Capital One Multi-Asset
	Execution Trust
	Series 2007-A7 A7
	5.75% 7/15/20		165,000		196,221
	CenterPoint Energy Transition
	Bond Series 2012-1 A2
	2.161% 10/15/21		105,000		105,414
#	CIT Equipment Collateral
	Series 2010-VT1A A3
	144A 2.41% 5/15/13		36,366		36,491
	Citibank Credit Card Issuance
	Trust Series 2007-A3 A3
	6.15% 6/15/39		80,000		103,329
	CNH Equipment Trust
	Series 2010-A A4
	2.49% 1/15/16		240,000		244,979
	Discover Card Master Trust
	Series 2007-A1 A1
	5.65% 3/16/20		105,000		125,257
#	Ford Auto Securitization Trust
	Series 2011-R1A A3 144A
	3.02% 2/15/16	CAD	100,000		102,351
•	Ford Credit Floorplan Master
	Owner Trust Series 2009-2
	A 1.792% 9/15/14	USD	100,000		100,688
#	Golden Credit Card Trust
	Series 2012-2A A1 144A
	1.77% 1/15/19		150,000		149,678
	Harley-Davidson Motorcycle
	Trust Series 2009-4 A3
	1.87% 2/15/14		18,820		18,845
	Mid-State Trust Series 11 A1
	4.864% 7/15/38		78,678		79,207
•	Residential Asset Securities
	Series 2006-KS3 AI3
	0.412% 4/25/36		180,385		164,305
#	Sonic Capital Series 2011-1A
	A2 144A 5.438% 5/20/41		82,875		86,350
Total Non-Agency Asset-Backed
	Securities (cost $2,045,584)				2,095,647

Non-Agency Collateralized Mortgage Obligations – 0.12%
	American Home Mortgage
	Investment Trust
	Series 2005-2 5A1
	5.064% 9/25/35		37,889		35,085
	Bank of America
	Alternative Loan Trust
	Series 2005-3 2A1
	5.50% 4/25/20		97,135		99,748
	Series 2005-6 7A1
	5.50% 7/25/20		10,841		10,353
•	Bank of America Mortgage
	Securities Series 2003-D
	1A2 2.747% 5/25/33		378		296
•	ChaseFlex Trust Series 2006-1
	A4 6.23% 6/25/36		110,000		81,749
•#	GSMPS Mortgage Loan
	Trust 144A
	Series 1998-3 A
	7.75% 9/19/27		34,991		37,147
	Series 1999-3 A
	8.00% 8/19/29		58,666		57,922
•	MASTR ARM Trust
	Series 2005-6 7A1
	5.206% 6/25/35		90,875		91,269
•#	MASTR Specialized
	Loan Trust Series
	2005-2 A2 144A
	5.006% 7/25/35		38,427		38,649
•	Structured ARM
	Loan Trust Series
	2006-5 5A4
	5.231% 6/25/36		29,088		2,303
•	Wells Fargo Mortgage-
	Backed Securities
	Trust Series
	2006-AR5 2A1
	2.638% 4/25/36		36,675		28,989
Total Non-Agency Collateralized Mortgage
	Obligations (cost $478,748)				483,510

ΔRegional Bonds – 1.26%
Australia – 0.83%
	New South Wales Treasury
	6.00% 4/1/19	AUD	943,000		1,066,362
	Queensland Treasury
	6.00% 9/14/17	AUD	402,000		448,782
	6.25% 6/14/19	AUD	1,592,000		1,812,225
					3,327,369
Canada – 0.43%
	Province of Ontario
	3.15% 6/2/22	CAD	701,000		704,254
	Province of Quebec
	4.25% 12/1/21	CAD	953,000		1,045,773
					1,750,027
Total Regional Bonds (cost $5,003,407)					5,077,396

«Senior Secured Loans – 1.85%
	99 Cents Only Stores Tranche B
	7.00% 10/4/18	USD	234,413		238,682
	AIG Tranche 2 7.00% 3/17/16		180,000		180,860
	Attachmate 6.50% 11/21/16		160,875		160,172
	BNY ConvergEx Group
	7.50% 12/16/17		88,053		87,612
	(EZE Castle Software)
	8.75% 11/29/17		36,947		36,763

(continues) 55

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
«Senior Secured Loans (continued)
	Brock Holdings III
	10.00% 2/15/18	USD	65,000	$	63,619
	Tranche B 6.00% 2/15/17		62,438		62,282
	Burlington Coat
	Factory Tranche B
	6.25% 2/10/17		494,438		498,542
	Caesars Entertainment
	Operating Tranche B6
	5.494% 1/28/18		342,000		309,753
	Cengage Learning
	Acquisitions
	2.25% 7/3/14		85,000		78,561
	7.50% 7/7/14		322,462		312,991
	Charter Communications
	Operating Tranche B
	8.50% 3/6/14		5,376		5,386
	Chrysler Group
	6.00% 4/28/17		347,338		353,456
	Clear Channel
	Communications Tranche A
	3.40% 7/30/14		449,894		416,995
	Consolidated Container
	5.50% 9/28/14		75,000		71,625
	Delta Air Lines Tranche B
	5.50% 3/29/17		154,162		154,186
	Emdeon Tranche B
	6.75% 8/3/18		154,613		157,109
	First Data 5.00% 3/24/17		194,313		186,359
	Frac Tech International
	Tranche B 6.25% 4/19/16		81,950		81,774
	GenOn Energy Tranche B
	6.00% 6/20/17		123,434		122,457
	Houghton International
	Tranche B 6.75% 1/11/16		69,000		69,302
	Immucor Tranche B
	7.25% 7/2/18		214,125		216,869
	Lawson Software Tranche B
	6.25% 3/16/18		190,000		188,100
	Level 3 Financing
	Tranche B2
	5.75% 4/11/18		110,000		111,238
	Tranche B3
	5.75% 9/1/18		135,000		136,519
	Lord & Taylor 5.75% 12/2/18		80,000		80,675
	Multiplan 4.75% 8/26/17		85,375		84,789
	Nuveen Investments
	5.50% 5/13/17		189,834		190,111
	8.25% 3/1/19		270,000		274,274
	OSI Restaurant Partners
	2.00% 6/14/13		31,856		31,458
	2.53% 6/13/14		322,101		317,181
	PQ 6.79% 7/30/15		140,000		135,025
@	Prime Healthcare Services
	Tranche B 7.25% 4/28/15		244,298		239,717
	Protection One
	5.75% 3/31/19		155,000		154,031
	Remy International
	Tranche B
	6.25% 12/16/16		120,512		121,114
	Reynolds Group Holdings
	Tranche C 6.50% 7/7/18		423,642		429,681
@	SandRidge Energy
	5.00% 2/2/17		125,000		125,000
	Sensus USA 2nd Lien
	8.50% 4/13/18		165,000		165,000
	Texas Competitive
	Electric Holdings
	3.50% 10/10/14		115,000		70,450
	Toys R US Tranche B
	6.00% 9/1/16		183,832		184,459
	Univision Communications
	4.25% 3/29/17		447,656		415,884
	Visant 5.25% 12/31/16		127,556		124,777
Total Senior Secured Loans
	(cost $7,312,739)				7,444,838

ΔSovereign Bonds – 3.44%
Australia – 0.03%
	Australia Government
	5.75% 5/15/21	AUD	93,000		109,241
					109,241
Brazil – 0.14%
	Federal Republic of Brazil
	5.625% 1/7/41	USD	231,000		267,383
	8.875% 10/14/19		200,000		283,700
					551,083
Canada – 0.14%
	Canadian Government
	3.75% 6/1/19	CAD	203,000		229,007
	4.00% 6/1/17	CAD	291,000		325,933
					554,940
Chile – 0.14%
	Chile Government
	International
	5.50% 8/5/20	CLP	256,000,000		550,196
					550,196
Colombia – 0.07%
	Colombia Government
	International
	6.125% 1/18/41	USD	228,000		280,440
					280,440
Finland – 0.06%
	Finland Government
	4.00% 7/4/25	EUR	156,000		238,285
					238,285

		Principal		Value
		Amount°		(U.S. $)
ΔSovereign Bonds (continued)
Germany – 0.16%
	Deutschland Republic
	2.00% 1/4/22	EUR	254,000	$	344,831
	2.50% 1/4/21	EUR	94,404		134,856
	3.50% 7/4/19	EUR	99,000		151,793
					631,480
Indonesia – 0.13%
	Indonesia Government
	International
	7.25% 4/20/15	USD	11,000		12,581
	Indonesia
	Treasury Bond
	11.00% 11/15/20	IDR	1,824,000,000		267,252
#	Republic of
	Indonesia 144A
	5.25% 1/17/42	USD	235,000		247,631
					527,464
Malaysia – 0.02%
	Malaysia Government
	4.262% 9/15/16	MYR	281,000		95,269
					95,269
Mexico – 0.19%
	Mexican Bonos
	6.50% 6/10/21	MXN	1,195,500		95,777
	8.50% 5/31/29	MXN	4,159,300		373,076
	8.50% 11/18/38	MXN	1,406,300		123,186
	Mexico Government
	International
	4.75% 3/8/44	USD	180,000		176,850
					768,889
Norway – 0.78%
	Norwegian Government
	3.75% 5/25/21	NOK	1,091,000		212,092
	4.25% 5/19/17	NOK	1,193,000		232,864
	4.50% 5/22/19	NOK	6,318,000		1,271,001
	5.00% 5/15/15	NOK	7,438,000		1,437,899
					3,153,856
Panama – 0.11%
	Republic of Panama
	6.70% 1/26/36	USD	60,000		79,200
	7.125% 1/29/26		100,000		134,000
	7.25% 3/15/15		57,000		66,149
	8.875% 9/30/27		116,000		178,350
					457,699
Peru – 0.14%
	Republic of Peru
	5.625% 11/18/50		80,000		90,000
	7.125% 3/30/19		386,000		494,080
					584,080
Philippines – 0.13%
	Republic of Philippines
	5.00% 1/13/37		200,000		209,500
	6.50% 1/20/20		100,000		121,375
	9.50% 10/21/24		132,000		197,670
					528,545
Poland – 0.14%
	Poland Government
	5.25% 10/25/17	PLN	550,000		179,164
	5.25% 10/25/20	PLN	502,000		159,696
	Poland Government
	International
	5.00% 3/23/22	USD	214,000		226,630
					565,490
Republic of Korea – 0.05%
	Korea Treasury
	Inflation Linked
	2.75% 6/10/20	KRW	180,192,527		183,107
					183,107
Russia – 0.23%
	Russian-Eurobond
	#144A 3.25% 4/4/17	USD	200,000		201,841
	7.50% 3/31/30		334,426		401,729
	#144A 7.50% 3/31/30		254,675		305,928
					909,498
South Africa – 0.37%
#	Eskom Holdings 144A
	5.75% 1/26/21		258,000		272,190
	South Africa Government
	7.25% 1/15/20	ZAR	2,089,000		264,250
	8.00% 12/21/18	ZAR	7,051,000		935,166
					1,471,606
Sweden – 0.15%
	Sweden Government
	3.00% 7/12/16	SEK	3,050,000		489,707
	5.00% 12/1/20	SEK	615,000		115,869
					605,576
Turkey – 0.05%
	Turkey Government
	International
	5.625% 3/30/21	USD	200,000		209,700
					209,700
United Kingdom – 0.15%
	United Kingdom Gilt
	4.25% 12/7/27	GBP	119,000		224,322
	4.50% 3/7/19	GBP	91,000		174,282
	4.75% 3/7/20	GBP	100,000		195,345
					593,949

(continues) 57

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

		Principal			Value
		Amount°			(U.S. $)
ΔSovereign Bonds (continued)
Uruguay – 0.06%
	Republic of Uruguay
	8.00% 11/18/22	USD	177,750		$	245,739
						245,739
Total Sovereign Bonds
	(cost $13,357,421)					13,816,132

Supranational Banks – 0.12%
	International Bank for
	Reconstruction &
	Development
	3.25% 12/15/17	SEK	450,000			71,533
	3.375% 4/30/15	NOK	1,500,000			272,050
	3.625% 6/22/20	NOK	790,000			141,396
Total Supranational Banks
	(cost $466,209)					484,979

U.S. Treasury Obligations – 4.47%
	U.S. Treasury Bonds
	3.125% 11/15/41	USD	4,970,000			4,768,094
	3.125% 2/15/42		75,000			71,906
	3.75% 8/15/41		5,000			5,406
	U.S. Treasury Notes
	1.00% 3/31/17		6,550,000			6,535,675
	∞2.00% 2/15/22		6,725,000			6,596,808
Total U.S. Treasury Obligations
	(cost $18,226,367)					17,977,889

		Number of
		Shares
Preferred Stock – 0.22%
	Alabama Power 5.625%		4,955			127,096
•	PNC Financial Services
	Group 8.25%		115,000			118,430
•	U.S. Bancorp 6.50%		600			474,001
	Volkswagen		945			166,170
Total Preferred Stock
	(cost $806,545)					885,697

		Principal
		Amount°
Short-Term Investments – 8.61%
≠Discount Notes – 2.77%
	Federal Home Loan Bank
	0.04% 4/27/12	USD	5,305,652			5,305,615
	0.65% 4/25/12		5,850,506			5,850,470
						11,156,085
Repurchase Agreements – 4.43%
	Bank of America 0.03%,
	dated 3/30/12, to be
	repurchased on 4/2/12,
	repurchase price
	$5,305,666 (collateralized
	by U.S. government
	obligations
	0.125%-4.125%
	12/31/13-5/15/15;
	market value $5,411,765)		5,305,652			5,305,652
	BNP Paribas 0.04%,
	dated 3/30/12, to
	be repurchased on
	4/2/12, repurchase
	price $12,498,910
	(collateralized by U.S.
	government obligations
	1.375%-7.50%
	6/15/12-2/15/37; market
	value $12,748,846)		12,498,869			12,498,869
						17,804,521
≠U.S. Treasury Obligation – 1.41%
	U.S. Treasury Bill
	0.008% 4/19/12		5,688,984			5,688,881
						5,688,881
Total Short-Term Investments
	(cost $34,649,042)					34,649,487

Total Value of Securities – 104.06%
	(cost $369,442,934)					418,636,215

		Number of
		Contracts
Option Written – (0.01%)
Put Option – (0.01%)
	U.S. Bond Future,
	strike price $139.00,
	expires 4/21/12 (JPMC)		(26	)		(52,813	)
Total Option Written
	(premium received $(35,723))					(52,813	)

Liabilities Net of Receivables and
	Other Assets – (4.05%)					(16,294,769	)«
Net Assets Applicable to 35,408,233
	Shares Outstanding – 100.00%				$	402,288,633


Net Asset Value – Delaware Foundation^®
	Moderate Allocation Fund Class A
	($222,279,414 / 19,563,349 Shares)			$11.36
Net Asset Value – Delaware Foundation
	Moderate Allocation Fund Class B
	($2,640,057 / 232,364 Shares)			$11.36
Net Asset Value – Delaware Foundation
	Moderate Allocation Fund Class C
	($17,124,445 / 1,502,816 Shares)			$11.39
Net Asset Value – Delaware Foundation
	Moderate Allocation Fund Class R
	($21,635,514 / 1,908,168 Shares)			$11.34
Net Asset Value – Delaware Foundation
	Moderate Allocation Fund Institutional Class
	($138,609,203 / 12,201,536 Shares)			$11.36

Components of Net Assets at March 31, 2012:
Shares of beneficial interest
	(unlimited authorization – no par)	$	362,898,999
Accumulated net investment loss			(581,942		)
Accumulated net realized loss			(9,161,240		)
Net unrealized appreciation of investments
	and derivatives		49,132,816
Total net assets		$	402,288,633

†	Non income producing security.
@	Illiquid security. At March 31, 2012, the aggregate value of illiquid securities was $3,614,894, which represented 0.90% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
∏	Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended and have certain restrictions on resale which may limit their liquidity. At March 31, 2012, the aggregate value of the restricted securities was $0 or 0.00% of the Fund’s net assets.
§	Developed Markets – countries that are thought to be most developed and therefore less risky than emerging markets.
X	Emerging Markets – developing countries with relatively low per capita income, often with above-average economic growth potential but with more risk.
=	Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2012, the aggregate value of fair valued securities was $610,268, which represented 0.15% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
‡	Non income producing security. Security is currently in default.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2012, the aggregate value of Rule 144A securities was $24,331,031, which represented 6.05% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
°	Principal amount shown is stated in the currency in which each security is denominated.
•	Variable rate security. The rate shown is the rate as of March 31, 2012. Interest rates reset periodically.
w	Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes.
Φ	Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at March 31, 2012.
Δ	Securities have been classified by country of origin.
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at March 31, 2012.
¥	Fully or partially pledged as collateral for futures contracts.
≠	The rate shown is the effective yield at the time of purchase.
«	Includes foreign currency valued at $874,325 with a cost of $852,888.

Net Asset Value and Offering Price Per Share –
	Delaware Foundation Moderate Allocation Fund
Net asset value Class A (A)		$	11.36
Sales charge (5.75% of offering price) (B)			0.69
Offering price		$	12.05

(continues) 59

Statements of net assets

Delaware Foundation^® Moderate Allocation Fund

The following foreign currency exchange contracts, futures contracts and swap contracts were outstanding at March 31, 2012:¹

Foreign Currency Exchange Contracts

Counterparty	Contracts to Receive (Deliver)			In Exchange For			Settlement Date	Unrealized Appreciation (Depreciation)
BAML	AUD	199,476		USD	(208,823	)	5/2/12		$	(2,988	)
BAML	BRL	1,405,070		USD	(762,589	)	5/2/12			1,316
BAML	CLP	(40,492,000	)	USD	82,940		5/2/12			(105	)
BAML	EUR	(2,106,340	)	USD	2,779,415		5/2/12			(30,129	)
BAML	HUF	(436,154,300	)	USD	1,960,000		5/2/12			(6,506	)
BAML	JPY	5,992,027		USD	(72,119	)	5/2/12			283
BAML	MXN	20,495,459		USD	(1,610,151	)	5/2/12			(13,252	)
BAML	NOK	(1,541,117	)	USD	267,313		5/2/12			(2,998	)
BAML	NZD	(72,415	)	USD	58,737		5/2/12			(419	)
BAML	RUB	29,165,110		USD	(990,881	)	5/2/12			(1,256	)
BAML	ZAR	(7,600,840	)	USD	988,695		5/2/12			2,580
BCLY	EUR	(223,009	)	USD	295,370		5/2/12			(2,090	)
BCLY	JPY	13,699,746		USD	(163,425	)	5/2/12			2,112
CITI	BRL	1,410,400		USD	(767,147	)	5/2/12			(344	)
CITI	EUR	(554,276	)	USD	731,386		5/2/12			(7,936	)
CITI	JPY	13,717,452		USD	(163,621	)	5/2/12			2,130
GSC	BRL	1,718,176		USD	(932,019	)	5/2/12			2,116
GSC	GBP	180,120		USD	(285,076	)	5/2/12			2,955
GSC	NOK	(387,520	)	USD	66,952		5/2/12			(1,018	)
GSC	RUB	14,567,700		USD	(494,407	)	5/2/12			(98	)
HSBC	AUD	(896,899	)	USD	933,582		5/2/12			8,091
HSBC	EUR	(56,625	)	USD	74,729		5/2/12			(800	)
HSBC	NOK	(3,534,416	)	USD	613,923		5/2/12			(6,012	)
HSBC	PLN	(1,368,432	)	USD	430,000		5/2/12			(8,557	)
JPMC	BRL	869,750		USD	(472,433	)	5/2/12			430
JPMC	EUR	(230,598	)	USD	304,159		5/2/12			(3,425	)
JPMC	NOK	(3,513,819	)	USD	608,717		5/2/12			(7,605	)
MNB	AUD	(2,901	)	USD	2,991		4/3/12			(13	)
MNB	CHF	(9,991	)	USD	10,993		4/3/12			(77	)
MNB	EUR	(14,721	)	USD	19,618		4/2/12			(13	)
MNB	EUR	61,937		USD	(82,315	)	4/3/12			290
MNB	GBP	(4,630	)	USD	7,345		4/3/12			(60	)
MNB	HKD	494,276		USD	(63,671	)	4/3/12			(20	)
MNB	JPY	(1,226,098	)	USD	14,871		4/3/12			60
MNB	MYR	(1,525	)	USD	497		4/2/12			(1	)
MSC	AUD	(308,138	)	USD	320,081		5/2/12			2,120
MSC	EUR	(1,003,368	)	USD	1,323,560		5/2/12			(14,785	)
MSC	GBP	(150,266	)	USD	237,838		5/2/12			(2,452	)
MSC	JPY	(4,754,070	)	USD	54,757		5/2/12			(2,687	)
MSC	NOK	(3,709,187	)	USD	642,477		5/2/12			(8,112	)
MSC	RUB	14,693,100		USD	(498,833	)	5/2/12			(268	)
									$	(99,543	)

Futures Contracts

Contracts to Buy (Sell)	Notional Cost (Proceeds)				Notional Value			Expiration Date	Unrealized Appreciation (Depreciation)
13 Euro-Bund		$	2,364,383		$	2,401,064		6/12/12		$	36,681
2 Long Gilt			361,870			366,306		6/30/12			4,436
(49) U.S. Treasury
10 yr Notes			(6,373,916	)		(6,344,735	)	6/29/12			29,181
2 U.S. Treasury
Long Bond			277,506			275,563		6/21/12			(1,943	)
		$	(3,370,157	)						$	68,355

Swap Contracts
CDS Contracts

Counterparty	Swap Referenced Obligation	Notional Value		Annual Protection Payments			Termination Date		Unrealized Appreciation (Depreciation)
	Protection Purchased:
	ITRAXX Europe
	Subordinate
	Financials 17.1
BAML	5 yr CDS	EUR	1,615,000		5.00	%		6/20/17		$	40,210
	Kingdom of Spain
BAML	5 yr CDS	USD	380,000		1.00	%		12/20/15			9,143
	ITRAXX Europe
	Subordinate
	Financials 17.1
BCLY	5 yr CDS	EUR	2,220,000		5.00	%		6/20/17			54,560
	Kingdom of Spain
BCLY	5 yr CDS	USD	375,000		1.00	%		3/20/15			26,230
BCLY	5 yr CDS		190,000		1.00	%		3/21/16			5,540
	Republic of France
BCLY	5 yr CDS		530,000		0.25	%		9/20/16			(8,643	)
	Republic of France
GSC	5 yr CDS		227,000		0.25	%		9/20/16			(3,301	)
	ITRAXX Europe
	Crossover 16.1
JPMC	5 yr CDS	EUR	815,000		5.00	%		12/20/16			(69,833	)
	Kingdom of Spain
JPMC	5 yr CDS	USD	330,000		1.00	%		3/20/17			8,137
	MeadWestvaco
JPMC	5 yr CDS		185,000		1.00	%		12/20/16			(7,300	)
	Republic of France
JPMC	5 yr CDS		378,000		0.25	%		9/20/16			(6,073	)
	ITRAXX Europe
	Crossover 16.1
MSC	5 yr CDS	EUR	1,210,000		5.00	%		12/20/16			(42,196	)
	Japan
MSC	5 yr CDS	USD	350,000		1.00	%		9/20/16			(4,168	)
MSC	5 yr CDS		594,000		1.00	%		3/20/17			(12,343	)
	Kingdom of Belgium
MSC	5 yr CDS		750,000		1.00	%		12/20/16			(29,132	)
MSC	5 yr CDS		233,000		1.00	%		3/20/17			(10,735	)

Counterparty	Swap Referenced Obligation	Notional Value		Annual Protection Payments			Termination Date		Unrealized Appreciation (Depreciation)
MSC	Kingdom of Spain
MSC	5 yr CDS	USD	507,000		1.00	%		6/20/16		$	28,202
MSC	5 yr CDS		500,000		1.00	%		9/20/16			5,039
MSC	5 yr CDS		500,000		1.00	%		3/20/17			6,517
MSC	Republic of France
	5 yr CDS		485,000		0.25	%		12/20/16			(8,773	)
MSC	Republic of Italy
MSC	5 yr CDS		400,000		1.00	%		9/20/16			6,061
MSC	5 yr CDS		233,000		1.00	%		3/20/17			(11,937	)
										$	(24,795	)

	Protection Sold/
	Moody’s Rating:
JPMC	Georgia Pacific
	5 yr CDS / Baa	USD	185,000		1.00	%		12/20/16		$	6,190
JPMC	Tyson Foods
	CDS / Ba		195,000		1.00	%		3/20/16			6,343
										$	12,533
Total										$	(12,262	)

¹See Note 8 in “Notes to financial statements.”

Summary of Abbreviations:
ADR — American Depositary Receipt
ARM — Adjustable Rate Mortgage
AUD — Australian Dollar
BAML — Bank of America Merrill Lynch
BCLY — Barclays Bank
BRL — Brazilian Real
CAD — Canadian Dollar
CDS — Credit Default Swap
CHF — Swiss Franc
CLP — Chilean Peso
CITI — Citigroup Global Markets
CVA — Dutch Certificate
EUR — European Monetary Unit
GBP — British Pound Sterling
GDR — Global Depositary Receipt
GNMA — Government National Mortgage Association
GSC — Goldman Sachs Capital
GSMPS — Goldman Sachs Reforming Mortgage Securities
HKD — Hong Kong Dollar
HSBC — Hong Kong Shanghai Bank
HUF — Hungarian Forint
IDR — Indonesian Rupiah
JPMC — JPMorgan Chase Bank
JPY — Japanese Yen
KRW — South Korean Won
MNB — Mellon National Bank
MSC — Morgan Stanley Capital
MXN — Mexican Peso
MYR — Malaysian Ringgit
NCUA — National Credit Union Administration
NOK — Norwegian Kroner
NVDR — Non-Voting Depositary Receipt
NZD — New Zealand Dollar
PIK — Pay-in-kind
PLN — Polish Zloty
REIT — Real Estate Investment Trust
REMIC — Real Estate Mortgage Investment Conduit
RUB — Russian Ruble
SEK — Swedish Krona
S.F. — Single Family
TBA — To be announced
USD — United States Dollar
yr — year
ZAR — South African Rand

See accompanying notes, which are an integral part of the financial statements.

(continues) 61

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund
March 31, 2011 (Unaudited)

		Number of		Value
		Shares		(U.S. $)
Common Stock – 37.78%
U.S. Markets – 20.36%
Consumer Discretionary – 2.19%
†	AFC Enterprises	2,355	$	39,941
†	Apollo Group Class A	6,000		231,840
†	Bally Technologies	395		18,466
†	Buffalo Wild Wings	330		29,928
	CEC Entertainment	720		27,295
†	Cheesecake Factory	730		21,455
	Cinemark Holdings	1,170		25,682
	Comcast Class A	9,500		285,095
	Comcast Special Class	4,500		132,795
	Cooper Tire & Rubber	1,275		19,406
	DSW Class A	1,130		61,890
	Ford Motor	7,180		89,678
†	G-III Apparel Group	705		20,036
†	Iconix Brand Group	1,985		34,499
†	Jack in the Box	1,265		30,322
	Jarden	1,930		77,644
	Jones Group	850		10,676
†	Jos. A Bank Clothiers	728		36,673
†	Knology	1,615		29,393
	Lowe’s	9,200		288,696
	Macy’s	1,870		74,295
†	Madden (Steven)	1,195		51,086
	McDonald’s	1,090		106,929
	National CineMedia	1,570		24,021
	NIKE Class B	2,475		268,389
	Nordstrom	1,430		79,680
†	OpenTable	340		13,760
†	Perry Ellis International	1,530		28,565
†	priceline.com	590		423,324
	Regal Entertainment Group Class A	1,220		16,592
†	Shuffle Master	2,780		48,928
	Staples	13,150		212,767
	Starbucks	1,040		58,126
	Target	1,090		63,514
†	Tenneco	920		34,178
	Viacom Class B	1,880		89,225
				3,104,789
Consumer Staples – 1.94%
	Archer-Daniels-Midland	13,850		438,490
	Avon Products	15,700		303,952
	Casey’s General Stores	825		45,755
	Coca-Cola	820		60,688
	CVS Caremark	8,580		384,383
†	Fresh Market	555		26,612
	General Mills	1,670		65,882
	J&J Snack Foods	630		33,050
	Kimberly-Clark	4,750		350,977
	Kraft Foods	7,273		276,447
	PepsiCo	1,780		118,103
†	Prestige Brands Holdings	1,315		22,986
	Procter & Gamble	2,340		157,271
	Safeway	13,200		266,772
†	Susser Holdings	1,555		39,917
	Walgreen	4,700		157,403
				2,748,688
Energy – 1.99%
	Baker Hughes	490		20,551
	Berry Petroleum Class A	715		33,698
	Bristow Group	735		35,082
†	Carrizo Oil & Gas	1,175		33,206
	Chevron	3,660		392,497
	ConocoPhillips	3,800		288,837
	El Paso	7,050		208,328
	EOG Resources	4,150		461,064
	Exxon Mobil	2,300		199,479
	Hess	950		56,003
†	Key Energy Services	1,315		20,317
	Kinder Morgan	3,500		135,275
	Lufkin Industries	380		30,647
	Marathon Oil	8,400		266,280
	National Oilwell Varco	260		20,662
†	Newfield Exploration	1,210		41,963
	Occidental Petroleum	490		46,663
†	Pioneer Drilling	3,440		30,272
†	RigNet	1,365		23,928
†	Rosetta Resources	555		27,062
	Schlumberger	1,590		111,189
†	Swift Energy	745		21,627
	Williams	9,000		277,290
†	WPX Energy	2,766		49,816
				2,831,736
Financials – 2.63%
	AFLAC	1,390		63,926
	Allstate	8,600		283,112
	American Equity Investment Life Holding	2,945		37,608
	Ameriprise Financial	980		55,987
	Bank of New York Mellon	12,000		289,560
†	BBCN Bancorp	1,880		20,924
	BlackRock	380		77,862
	Capital One Financial	1,160		64,658
	Cardinal Financial	2,160		24,408
	City Holding	610		21,179
	CME Group	960		277,757
	DCT Industrial Trust	5,080		29,972
	Dime Community Bancshares	1,860		27,175
	DuPont Fabros Technology	1,250		30,563
	EastGroup Properties	735		36,912
	Entertainment Properties Trust	745		34,553
	Flushing Financial	2,085		28,064
	Home Bancshares	955		25,413
	Home Properties	635		38,741

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Financials (continued)
	Host Hotels & Resorts	3,820	$	62,724
@	Independent Bank	935		26,863
†	IntercontinentalExchange	2,870		394,395
	JPMorgan Chase	3,420		157,252
	LaSalle Hotel Properties	1,390		39,115
	Marsh & McLennan	8,900		291,831
	Park National	475		32,856
†	Piper Jaffray	915		24,357
	Primerica	1,235		31,134
	ProAssurance	340		29,957
	Progressive	14,000		324,520
	Prosperity Bancshares	695		31,831
	Prudential Financial	1,190		75,434
	Sovran Self Storage	825		41,110
	State Street	1,350		61,425
	Susquehanna Bancshares	3,380		33,394
	Tanger Factory Outlet Centers	1,020		30,325
†	Texas Capital Bancshares	600		20,772
	Travelers	5,880		348,096
	Trustmark	955		23,856
	Webster Financial	1,525		34,572
	Wells Fargo	4,270		145,778
				3,729,971
Healthcare – 2.63%
	Abbott Laboratories	1,570		96,225
†	Acorda Therapeutics	985		26,152
†	Air Methods	435		37,954
†	Align Technology	1,625		44,769
	Allergan	4,375		417,506
	AmerisourceBergen	1,090		43,251
	Baxter International	4,700		280,966
	Cardinal Health	6,700		288,837
†	Catalyst Health Solutions	535		34,096
†	Celgene	950		73,644
	Conmed	950		28,377
†	CryoLife	2,575		13,570
†	Express Scripts	1,650		89,397
†	Gilead Sciences	1,560		76,206
†	Greenway Medical Technologies	1,115		17,037
†	Haemonetics	480		33,446
†	Incyte	1,780		34,354
	Johnson & Johnson	4,550		300,118
	Merck	10,920		419,328
†	Merit Medical Systems	2,306		28,641
†	ONYX Pharmaceuticals	1,120		42,202
	Perrigo	1,650		170,462
	Pfizer	19,938		451,795
	Quality Systems	740		32,360
	Quest Diagnostics	4,700		287,405
†	Quidel	1,845		33,893
†	Salix Pharmaceuticals	540		28,350
†	Spectrum Pharmaceuticals	2,180		27,533
	Thermo Fisher Scientific	1,360		76,677
	UnitedHealth Group	2,150		126,721
†	Vertex Pharmaceuticals	910		37,319
	West Pharmaceutical Services	725		30,834
				3,729,425
Industrials – 2.03%
	AAON	1,440		29,074
	Acuity Brands	585		36,756
	Applied Industrial Technologies	1,095		45,037
	Barnes Group	1,335		35,124
	Caterpillar	2,525		268,963
†	Chart Industries	530		38,865
†	Columbus McKinnon	1,525		24,842
†	CRA International	630		15,889
	Cummins	350		42,014
	Deere	980		79,282
	Ducommun	455		5,415
	ESCO Technologies	710		26,107
†	Esterline Technologies	705		50,379
	Expeditors International of Washington	4,300		199,993
	FedEx	480		44,141
	Fluor	750		45,030
†	FTI Consulting	615		23,075
	General Electric	4,430		88,910
	Granite Construction	705		20,262
	Honeywell International	1,380		84,249
†	Hub Group Class A	1,220		43,957
	Hunt (J.B.) Transport Services	720		39,146
†	Kadant	1,130		26,917
†	KEYW Holding	1,585		12,284
†	Kforce	2,425		36,133
	Lockheed Martin	550		49,423
	Manpower	640		30,317
	McGrath RentCorp	595		19,105
†	MYR Group	1,450		25,897
	Northrop Grumman	4,500		274,860
	Raytheon	5,400		285,012
	Republic Services	940		28,726
	Rockwell Collins	380		21,873
	Roper Industries	270		26,773
†	RPX	615		10,430
†	Tetra Tech	1,035		27,283
†	Titan Machinery	1,170		32,994
	Towers Watson Class A	850		56,160
	Triumph Group	985		61,720
†	Tutor Perini	955		14,879
	Union Pacific	580		62,338
	United Stationers	1,190		36,926
	United Technologies	1,370		113,628

(continues) 63

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
U.S. Markets (continued)
Industrials (continued)
	URS	820	$	34,866
	US Ecology	1,340		29,132
	Waste Management	7,800		272,688
				2,876,874
Information Technology – 5.27%
†	Adobe Systems	9,400		322,514
	Adtran	1,095		34,153
†	Amkor Technology	3,500		21,508
†	Anixter International	560		40,617
†	Apple	1,940		1,162,971
†	Applied Micro Circuits	3,830		26,580
†	Cirrus Logic	1,010		24,038
	Cisco Systems	15,240		322,326
†	Citrix Systems	350		27,619
†	Cognizant Technology Solutions Class A	1,040		80,028
†	comScore	1,015		21,711
†	Demandware	80		2,384
†	eBay	1,120		41,317
†	EMC	3,770		112,648
†	EPAM Systems	810		16,621
†	ExlService Holdings	620		17,013
†	FARO Technologies	695		40,539
†	Google Class A	885		567,496
	Intel	13,730		385,950
	International Business Machines	240		50,076
	Intuit	5,900		354,767
†	IXYS	1,890		24,948
	j2 Global	1,220		34,990
†	Liquidity Services	675		30,240
†	LogMeln	865		30,474
	MasterCard Class A	1,100		462,593
	Microsoft	5,930		191,243
	Motorola Solutions	5,514		280,277
†	NETGEAR	615		23,493
†	Nuance Communications	1,290		32,998
	Plantronics	840		33,818
†	Polycom	7,400		141,118
†	Progress Software	1,272		30,045
	QUALCOMM	9,430		641,428
†	QuinStreet	1,775		18,620
†	Rofin-Sinar Technologies	720		18,986
†	Semtech	915		26,041
†	SolarWinds	720		27,828
†	SS&C Technologies Holdings	1,820		42,461
†	Symantec	2,700		50,490
†	Synaptics	540		19,715
	Syntel	365		20,440
†	TeleTech Holdings	1,720		27,692
†	Teradata	3,600		245,340
†	ValueClick	1,660		32,768
	VeriSign	8,400		322,056
†	ViaSat	565		27,239
	Visa Class A	4,100		483,799
†	Vocus	1,540		20,405
	Xerox	33,200		268,256
†	Yahoo	12,900		196,338
				7,479,015
Materials – 0.55%
	Allegheny Technologies	630		25,937
	Boise	3,335		27,380
†	Castle (A.M.)	2,565		32,447
	Celanese Class A	1,280		59,110
	Cliffs Natural Resources	610		42,249
†	Coeur d’Alene Mines	1,050		24,927
	duPont (E.I.) deNemours	6,720		355,487
	Eastman Chemical	950		49,106
†	Ferro	3,770		22,394
	Innophos Holdings	530		26,564
	Koppers Holdings	520		20,051
†	Owens-Illinois	1,440		33,610
	Silgan Holdings	810		35,802
†	TPC Group	510		22,547
				777,611
Telecommunication Services – 0.81%
	AT&T	13,630		425,665
	Atlantic Tele-Network	480		17,453
†	Crown Castle International	8,050		429,392
	NTELOS Holdings	892		18,464
	Verizon Communications	7,000		267,610
				1,158,584
Utilities – 0.32%
	AGL Resources	940		36,867
	Cleco	855		33,901
	Edison International	6,400		272,064
	MDU Resources Group	1,540		34,481
	NorthWestern	640		22,694
	OGE Energy	730		39,055
	UIL Holdings	635		22,073
				461,135
Total U.S. Markets
	(cost $21,696,287)			28,897,828

§Developed Markets – 11.88%
Consumer Discretionary – 1.78%
	Adidas	555		43,330
	Bayerische Motoren Werke	2,466		221,762
	Cie Financiere Richemont Class A	880		55,177
	Crown	4,020		36,183

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Consumer Discretionary (continued)
	Don Quijote	5,800	$	210,533
	Eutelsat Communications	990		36,599
	Hennes & Mauritz Class B	1,100		39,804
	Inditex	630		60,343
	LVMH Moet Hennessy Louis Vuitton	270		46,397
	McDonald’s Holdings Japan	1,100		29,179
	Next	880		41,986
	Pirelli & C	2,870		34,142
	PPR	677		116,472
	Publicis Groupe	4,356		240,131
	Reed Elsevier	4,000		35,508
	Shimamura	300		33,557
	Shimano	600		36,130
	Sky City Entertainment Group	9,650		31,130
	Sumitomo Rubber Industries	10,657		141,475
	Suzuki Motor	1,700		40,598
	Swatch Group Bearer Shares	100		46,029
	Techtronic Industries	138,000		186,592
	Toyota Motor	10,599		457,068
	Yamada Denki	470		29,352
	Yamaha	3,200		33,165
	Yue Yuen Industrial Holdings	69,000		242,126
				2,524,768
Consumer Staples – 1.68%
	Anheuser-Busch InBev	960		70,135
	Aryzta	6,701		331,079
	Asahi Group Holdings	1,900		42,069
	British American Tobacco	2,415		121,693
	Carlsberg Class B	2,634		217,647
	Coca-Cola Amatil	16,273		210,179
	Danone	570		39,757
	Diageo	2,650		63,684
	Golden Agri-Resources	56,000		34,975
	Greggs	18,088		150,585
	Imperial Tobacco Group	1,100		44,601
	Japan Tobacco	11		61,919
	Kao	1,900		49,850
	Kerry Group Class A	870		40,262
	Koninklijke Ahold	3,190		44,203
	L’Oreal	420		51,807
	Nestle	2,830		178,070
	Reckitt Benckiser Group	960		54,248
	SABMiller	890		35,723
	Seven & I Holdings	1,100		32,661
	Tesco	54,235		286,262
	Unilever	2,110		69,657
	Unilever CVA	1,800		61,251
	Wesfarmers	860		26,740
	Woolworths	2,400		64,581
				2,383,638
Energy – 0.69%
	Aker Solutions	2,170		36,719
	AMEC	2,130		37,748
	BG Group	3,980		92,177
†	EDP Renovaveis	6,200		30,809
	Inpex	5		33,762
†	Lundin Petroleum	1,440		30,864
	Neste Oil	2,680		33,008
	Noble	1,510		56,580
	Petrofac	1,370		38,128
	Santos	2,830		41,740
	Subsea 7	9,304		246,407
	Total	4,930		251,424
	Woodside Petroleum	1,310		47,231
				976,597
Financials – 1.09%
	AIA Group	15,600		57,152
	Alterra Capital Holdings	1,400		32,172
	Assicurazioni Generali	3,260		50,607
	AXA	13,095		217,079
	Banca Carige	14,800		19,422
	City Developments	4,000		36,121
	Daito Trust Construction	400		35,900
	Erste Group Bank	1,290		29,746
	Hong Kong Exchanges & Clearing	2,300		38,651
†	Lloyds Banking Group	100,000		53,750
	London Stock Exchange Group	1,950		32,250
	Man Group	12,000		25,873
	Mitsubishi UFJ Financial Group	49,781		247,747
	Nordea Bank	23,375		212,519
	Seven Bank	15,900		34,571
	Sony Financial Holdings	1,900		33,738
	Standard Chartered	12,708		317,083
	Swire Properties	1,750		4,349
†	UBS	5,430		76,093
				1,554,823
Healthcare – 1.38%
†	Alkermes	2,480		46,004
	Cie Generale d’Optique Essilor International	340		30,303
	Coloplast Class B	200		34,629
	Dainippon Sumitomo Pharma	3,400		36,019
	Fresenius	335		34,352
	Getinge Class B	1,280		36,450
	GlaxoSmithKline	4,770		106,544
†	ICON ADR	1,220		25,888
	Meda Class A	11,176		106,593
	Miraca Holdings	900		35,115
	Novartis	4,096		226,693
	Novo Nordisk ADR	2,075		287,823
	Novo Nordisk Class B	510		70,616
	Roche Holding	945		164,462

(continues) 65

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
§Developed Markets (continued)
Healthcare (continued)
	Sanofi	3,056	$	237,324
	Santen Pharmaceutical	800		34,161
	Shire	1,550		50,079
	Teva Pharmaceutical Industries ADR	8,842		398,421
				1,961,476
Industrials – 2.04%
	ABB	3,540		72,627
	Aeroports de Paris	410		33,650
	Aggreko	1,020		36,707
	Alfa Laval	1,500		30,857
	Alstom	5,334		208,147
	Central Japan Railway	5		41,191
	Cie de Saint-Gobain	3,342		149,245
	Copa Holdings Class A	2,301		182,239
	Deutsche Post	14,265		274,619
	DSV	1,400		31,743
	East Japan Railway	4,125		259,603
	Elbit Systems	920		35,703
	European Aeronautic Defence & Space	1,340		54,873
	FANUC	200		35,465
	Ferrovial	2,930		33,676
	Fraport	570		35,690
	Fraser and Neave	6,000		31,983
	G4S	8,500		37,047
	Hoya	1,900		42,666
	IHI	14,000		35,345
	Invensys	10,000		31,829
	ITOCHU	22,537		245,828
	Koninklijke Philips Electronics	2,612		52,949
	Kurita Water Industries	1,100		26,947
	Mitsubishi Electric	6,000		53,053
	QR National	8,600		33,225
	Rolls-Royce Holdings	2,870		37,274
	Sandvik	3,400		49,079
	Schneider Electric	545		35,608
	Siemens	770		77,624
	Societe BIC	335		33,615
	Swire Pacific Class A	3,500		39,234
	Teleperformance	9,902		282,934
	Vallourec	2,212		140,127
	Volvo Class B	3,950		57,555
	Yamato Holdings	2,500		38,624
				2,898,581
Information Technology – 0.84%
	Accenture Class A	1,130		72,885
	ASM Pacific Technology	2,650		38,663
	ASML Holding	1,230		61,482
	Avago Technologies	1,110		43,257
	Canon	1,700		80,292
†	CGI Group Class A	20,423		455,118
	Computershare	3,800		35,423
†	Foxconn International Holdings	45,000		32,045
†	InterXion Holding	1,390		24,951
	Nokia	37,688		205,172
	SAP	1,120		78,210
	Tokyo Electron	600		34,318
	Trend Micro	1,100		33,790
				1,195,606
Materials – 1.72%
	Agrium	770		66,505
	Air Liquide	450		59,990
	Anglo American	1,500		56,069
	Anglo American ADR	2,900		54,142
†	AuRico Gold	24,755		220,612
	BASF	1,230		107,593
	BHP Billiton	3,210		97,936
	BHP Billiton Limited	4,435		158,983
	Israel Chemicals	4,811		54,753
	Johnson Matthey	880		33,203
	Kansai Paint	3,000		30,259
	Kazakhmys	2,370		34,420
	Lafarge	1,908		91,059
	Lanxess	345		28,518
	Newcrest Mining	1,700		52,260
	Nitto Denko	900		36,257
	Rexam	48,381		331,276
	Rio Tinto	4,441		244,775
	Rio Tinto Limited	420		28,450
	Sika Bearer Shares	13		28,140
	Syngenta	160		55,318
	Syngenta ADR	3,625		249,508
	Wacker Chemie	280		24,687
	Yamana Gold	17,065		266,183
	Yara International	620		29,574
				2,440,470
Telecommunication Services – 0.34%
	China Mobile ADR	2,600		143,208
	KDDI	6		38,848
	Tele2 Class B	1,660		33,873
	Vodafone Group	70,963		195,450
	Vodafone Group ADR	2,450		67,792
				479,171
Utilities – 0.32%
	Centrica	7,600		38,461
	Enagas	1,640		31,561
	National Grid	30,344		306,004
	Shikoku Electric Power	1,100		31,000
	SSE	2,030		43,151
				450,177
Total Developed Markets
	(cost $15,084,908)			16,865,307

		Number of	Value
		Shares	(U.S. $)
Common Stock (continued)
XEmerging Markets – 5.54%
Consumer Discretionary – 0.41%
†	Ctrip.com International ADR	4,600	$	99,544
	Focus Media Holding ADR	2,200		55,264
	Grupo Televisa ADR	7,325		154,411
	Hyundai Home Shopping Network	888		105,126
	Hyundai Motor	275		56,608
	LG Electronics	814		59,545
	Mahindra & Mahindra	4,269		58,790
				589,288
Consumer Staples – 0.55%
	Brazil Foods ADR	3,700		74,037
	China Mengniu Dairy	14,000		41,014
	Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR	1,500		71,430
	Fomento Economico Mexicano ADR	1,100		90,497
	Hypermarcas	11,600		81,902
@	Lotte Chilsung Beverage	72		77,350
@	Lotte Confectionery	51		74,750
	Tingyi Cayman Islands Holding	23,908		69,117
	Tsingtao Brewery	10,004		54,042
@	United Spirits	6,171		73,556
	Wal-Mart de Mexico Series V	21,763		73,028
				780,723
Energy – 1.25%
	Banpu NVDR	5,117		100,913
	CNOOC	110,000		226,074
	CNOOC ADR	400		81,716
	Gazprom ADR	11,960		147,945
	LUKOIL ADR	1,800		109,440
	PetroChina ADR	475		66,752
	Petroleo Brasileiro SA ADR	12,019		319,224
	Petroleo Brasileiro SP ADR	7,604		194,358
	Polski Koncern Naftowy Orlen	3,392		40,752
	PTT	8,172		93,834
#	Reliance Industries 144A GDR	5,970		174,026
	Rosneft Oil GDR	10,100		71,508
	Sasol ADR	1,600		77,824
	YPF ADR	2,300		65,343
				1,769,709
Financials – 0.78%
	Banco Santander Brasil ADR	8,200		75,194
	Bangkok Bank	11,668		70,016
	China Construction Bank	99,080		76,553
=#@†	Etalon Group GDR 144A	3,700		25,345
	ICICI Bank ADR	1,600		55,792
	Industrial & Commercial Bank of China	174,459		112,553
	Itau Unibanco Holding ADR	5,200		99,788
@	KB Financial Group ADR	3,727		136,781
	Samsung Life Insurance	770		67,347
=@	Sberbank	44,716		144,620
	Standard Bank Group	7,495		108,809
@†	UEM Land Holdings	109,352		80,003
	VTB Bank GDR	11,000		49,610
				1,102,411
Industrials – 0.26%
	All America Latina Logistica	10,630		53,044
	Gol Linhas Aereas Inteligentes ADR	7,200		48,456
@	KCC	396		114,052
	Santos Brasil Participacoes	3,600		62,943
	United Tractors	24,736		89,270
				367,765
Information Technology – 0.92%
†	Baidu ADR	600		87,462
	Hon Hai Precision Industry	53,327		206,932
	HTC	3,152		63,773
	LG Display ADR	4,600		54,142
	MediaTek	6,000		57,444
	Samsung Electronics	270		304,135
†	Sina	1,000		65,000
†	Sohu.com	3,906		215,494
	Taiwan Semiconductor Manufacturing	22,034		63,398
	Taiwan Semiconductor Manufacturing ADR	3,500		53,480
	United Microelectronics	235,000		115,083
†	WNS Holdings ADR	1,620		19,521
				1,305,864
Materials – 0.53%
	Anglo American Platinum	806		56,110
	ArcelorMittal South Africa	6,558		47,843
	Braskem ADR	3,400		54,162
†	Cemex ADR	10,559		81,939
	Fibria Celulose ADR	8,337		69,947
@	Gerdau	4,000		31,222
	Gerdau ADR	3,400		32,742
	Impala Platinum Holdings	2,842		55,983
	Siam Cement NVDR	2,100		24,181
	Steel Authority of India	19,171		35,537
	Ultratech Cement	2,704		80,546
	Vale ADR	7,925		184,890
				755,102
Telecommunication Services – 0.84%
	America Movil ADR	3,000		74,490
	China Telecom	136,000		75,306
	China Unicom Hong Kong ADR	7,508		126,134
	Chunghwa Telecom ADR	2,560		78,746

(continues) 67

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

			Number of	Value
			Shares	(U.S. $)
Common Stock (continued)
XEmerging Markets (continued)
Telecommunication Services (continued)
	KT ADR		8,600	$	117,734
	Mobile Telesystems ADR		12,912		236,806
	MTN Group		3,344		58,861
	SK Telecom ADR		13,000		180,830
	Telefonica Brasil ADR		2,650		81,170
	Turkcell Iletisim Hizmet ADR		4,687		59,056
	Vodacom Group		7,742		109,155
					1,198,288
Total Emerging Markets
	(cost $7,735,477)				7,869,150

Total Common Stock
	(cost $44,516,672)				53,632,285

Convertible Preferred Stock – 0.20%
	Apache 6.00%
	exercise price $109.12,
	expiration date 8/1/13		600		33,324
	Aspen Insurance Holdings 5.625%
	exercise price $29.28,
	expiration date 12/31/49		777		43,124
	Bank of America 7.25%
	exercise price $50.00,
	expiration date 12/31/49		11		10,769
#	Chesapeake Energy 144A 5.75%
	exercise price $27.94,
	expiration date 12/31/49		32		32,640
	HealthSouth 6.50%
	exercise price $30.50,
	expiration date 12/31/49		59		58,129
	PPL 9.50%
	exercise price $28.80,
	expiration date 7/1/13		850		46,189
	SandRidge Energy 8.50%
	exercise price $8.01,
	expiration date 12/31/49		233		27,800
	Wells Fargo 7.50%
	exercise price $156.71,
	expiration date 12/31/49		28		31,268
Total Convertible Preferred Stock
	(cost $297,545)				283,243

Exchange-Traded Funds – 0.04%
	iShares MSCI EAFE Growth Index		520		30,493
	iShares MSCI Japan Index Fund		1,950		19,851
Total Exchange-Traded Funds
	(cost $48,748)				50,344

		Principal
		Amount°
Agency Collateralized Mortgage Obligations – 0.53%
	Fannie Mae REMICs
	Series 2003-26 AT
	5.00% 11/25/32	USD	110,281		117,192
	Series 2003-32 PH
	5.50% 3/25/32		61,538		64,147
	Series 2010-41 PN
	4.50% 4/25/40		60,000		64,720
	Series 2010-96 DC
	4.00% 9/25/25		115,000		123,617
	Freddie Mac REMIC
	Series 2512 PG
	5.50% 10/15/22		165,000		182,804
	GNMA Series 2010-113 KE
	4.50% 9/20/40		140,000		153,920
	NCUA Guaranteed Notes
	Series 2010-C1 A2
	2.90% 10/29/20		50,000		52,463
Total Agency Collateralized Mortgage
	Obligations (cost $719,994)				758,863

Agency Mortgage-Backed Securities – 7.07%
	Fannie Mae S.F. 15 yr
	4.00% 11/1/25		165,753		177,638
	4.00% 1/1/26		276,457		293,082
	5.00% 9/1/18		35,332		38,351
	5.50% 7/1/22		42,655		46,513
	Fannie Mae S.F. 15 yr TBA
	3.00% 4/1/27		1,422,000		1,471,991
	3.00% 5/1/27		240,000		247,800
	3.50% 4/1/27		930,000		975,338
	Fannie Mae S.F. 20 yr
	5.50% 8/1/28		76,491		83,462
	Fannie Mae S.F. 30 yr
	3.50% 2/1/41		126,581		130,123
	4.00% 1/1/42		9,947		10,440
	5.00% 12/1/36		398,404		430,809
	6.00% 2/1/41		240,882		266,921
	6.50% 2/1/36		24,177		27,277
	Fannie Mae S.F. 30 yr TBA
	3.50% 4/1/42		1,175,000		1,206,578
	3.50% 5/1/42		710,000		726,973
	4.00% 5/1/42		660,000		690,525
	5.50% 5/1/42		350,000		380,734
	6.00% 4/1/42		143,000		157,546
	6.00% 5/1/42		924,000		1,016,544
	6.00% 6/1/42		245,000		269,194
	Freddie Mac S.F. 30 yr
	5.50% 3/1/42		825,000		898,992
	6.00% 8/1/38		181,407		201,596
	6.00% 10/1/38		255,396		283,819
Total Agency Mortgage-Backed
	Securities (cost $9,977,060)				10,032,246

			Principal		Value
			Amount°		(U.S. $)
Commercial Mortgage-Backed Securities – 2.04%
#	American Tower Trust
	Series 2007-1A AFX 144A
	5.42% 4/15/37	USD		70,000	$	74,522
	BAML Commercial Mortgage
	Securities
	•Series 2005-1 A5
	5.171% 11/10/42			35,000		38,492
	Series 2006-4 A4
	5.634% 7/10/46			50,000		56,424
•	Bear Stearns Commercial
	Mortgage Securities
	Series 2004-PWR4 A3
	5.468% 6/11/41			90,000		96,573
	Series 2005-PW10 A4
	5.405% 12/11/40			60,000		67,020
	Series 2005-T20 A4A
	5.145% 10/12/42			35,000		38,944
	Series 2006-PW12 A4
	5.719% 9/11/38			25,000		28,378
#	CFCRE Commercial
	Mortgage Trust Series
	2011-C1 A2 144A
	3.759% 4/15/44			100,000		105,183
w	Commercial Mortgage Pass
	Through Certificates
	•Series 2005-C6 A5A
	5.116% 6/10/44			50,000		55,100
	#Series 2010-C1 A1 144A
	3.156% 7/10/46			63,135		65,717
#	DBUBS Mortgage Trust
	Series 2011-LC1A A3
	144A 5.002% 11/10/46			300,000		337,584
	Goldman Sachs
	Mortgage Securities II
	•Series 2004-GG2 A5
	5.279% 8/10/38			225,000		237,982
	•Series 2004-GG2 A6
	5.396% 8/10/38			115,000		124,072
	Series 2005-GG4 A4
	4.761% 7/10/39			290,000		309,213
	Series 2005-GG4 A4A
	4.751% 7/10/39			50,000		54,223
	#Series 2010-C1 A2 144A
	4.592% 8/10/43			100,000		110,107
	•#Series 2011-GC3 B 144A
	5.361% 3/10/44			100,000		107,404
•	JPMorgan Chase Commercial
	Mortgage Securities
	Series 2005-LDP3 A4A
	4.936% 8/15/42			65,000		71,369
	Series 2005-LDP5 A4
	5.205% 12/15/44			275,000		306,737
	LB-UBS Commercial Mortgage
	Trust Series 2004-C1 A4
	4.568% 1/15/31			50,000		52,581
	Morgan Stanley Capital I
	Series 2005-HQ6 A4A
	4.989% 8/13/42			60,000		65,881
	•Series 2007-T27 A4
	5.64% 6/11/42			240,000		275,908
#	OBP Depositor Trust Series
	2010-OBP A 144A
	4.646% 7/15/45			100,000		111,803
#	WF-RBS Commercial
	Mortgage Trust
	Series 2011-C3 A4 144A
	4.375% 3/15/44			95,000		101,817
Total Commercial Mortgage-Backed
	Securities (cost $2,644,525)					2,893,034

Convertible Bonds – 1.25%
	AAR 1.75% exercise price $29.04,
	expiration date 1/1/26			41,000		40,693
	Advanced Micro Devices
	5.75% exercise price $20.13,
	expiration date 8/15/12			31,000		31,581
	6.00% exercise price $28.08,
	expiration date 4/30/15			58,000		60,610
#	Alaska Communications
	System Group 144A 6.25%
	exercise price $10.28,
	expiration date 4/27/18			43,000		33,325
	Alcatel-Lucent USA 2.875%
	exercise price $15.35,
	expiration date 6/15/25			40,000		39,500
	Alere 3.00%
	exercise price $43.98,
	expiration date 5/15/16			35,000		35,306
#	Ares Capital 144A 5.75%
	exercise price $19.13,
	expiration date 2/1/16			39,000		40,901
	ArvinMeritor 4.00%
	exercise price $26.73,
	expiration date 2/15/27			67,000		56,196
#	BGC Partners 144A 4.50%
	exercise price $9.84,
	expiration date 7/13/16			30,000		30,263
	Chesapeake Energy 2.25%
	exercise price $85.81,
	expiration date 12/15/38			36,000		29,295
#	Clearwire Communications
	144A 8.25%
	exercise price $7.08,
	expiration date 11/30/40			38,000		29,783
#	Corporate Office Properties
	144A 4.25%
	exercise price $48.00,
	expiration date 4/12/30			70,000		68,512
	Dendreon 2.875%
	exercise price $51.24,
	expiration date 1/13/16			18,000		14,490

(continues) 69

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Convertible Bonds (continued)
	Equinix 4.75%
	exercise price $84.32,
	expiration date 6/15/16	USD	23,000	$	46,114
	Euronet Worldwide 3.50%
	exercise price $40.48,
	expiration date 10/15/25		30,000		30,263
#	Gaylord Entertainment
	144A 3.75%
	exercise price $27.25,
	expiration date 9/29/14		25,000		32,188
Φ	General Cable 4.50%
	exercise price $36.75,
	expiration date 11/15/29		25,000		26,469
	Health Care REIT 3.00%
	exercise price $51.08,
	expiration date 11/30/29		48,000		55,080
	Helix Energy Solutions
	Group 3.25%
	exercise price $25.02,
	expiration date 3/12/32		48,000		50,880
Φ	Hologic 2.00%
	exercise price $31.17,
	expiration date 2/27/42		9,000		8,989
#	Illumina 144A 0.25%
	exercise price $83.55,
	expiration date 3/11/16		17,000		16,384
	Intel 2.95%
	exercise price $29.96,
	expiration date 12/15/35		25,000		28,875
	James River Coal 4.50%
	exercise price $25.78,
	expiration date 12/1/15		16,000		9,040
	Jefferies Group 3.875%
	exercise price $37.94,
	expiration date 11/1/29		59,000		56,345
	L-3 Communications
	Holdings 3.00%
	exercise price $96.48,
	expiration date 8/1/35		53,000		51,873
	Leap Wireless International 4.50%
	exercise price $93.21,
	expiration date 7/15/14		55,000		52,730
#	Lexington Realty Trust 144A 6.00%
	exercise price $7.01,
	expiration date 1/11/30		30,000		41,438
	Linear Technology 3.00%
	exercise price $43.39,
	expiration date 5/1/27		82,000		87,638
	Live Nation Entertainment 2.875%
	exercise price $27.14,
	expiration date 7/14/27		94,000		90,357
	MGM Resorts International 4.25%
	exercise price $18.58,
	expiration date 4/10/15		37,000		39,266
	Mylan 3.75%
	exercise price $13.32,
	expiration date 9/10/15		33,000		61,957
	National Retail Properties 5.125%
	exercise price $25.37,
	expiration date 6/15/28		22,000		25,135
#	Nuance Communications
	144A 2.75%
	exercise price $32.30,
	expiration date 11/1/31		13,000		14,755
	NuVasive
	2.25% exercise price $44.74,
	expiration date 3/15/13		18,000		17,865
	2.75% exercise price $42.13,
	expiration date 6/30/17		37,000		31,728
#	Owens-Brockway Glass
	Container 144A 3.00%
	exercise price $47.47,
	expiration date 5/28/15		80,000		78,700
	Pantry 3.00%
	exercise price $50.09,
	expiration date 11/15/12		57,000		57,356
	Peabody Energy 4.75%
	exercise price $58.19,
	expiration date 12/15/41		7,000		6,685
	PHH 4.00%
	exercise price $25.80,
	expiration date 9/1/14		69,000		66,585
	Rovi 2.625%
	exercise price $47.36,
	expiration date 2/10/40		37,000		38,989
	SanDisk 1.50%
	exercise price $52.37,
	expiration date 8/11/17		38,000		45,173
	SBA Communications 4.00%
	exercise price $30.38,
	expiration date 10/1/14		13,000		22,913
	Transocean 1.50%
	exercise price $158.97,
	expiration date 12/15/37		27,000		26,865
	VeriSign 3.25%
	exercise price $34.37,
	expiration date 8/15/37		40,000		51,300
Total Convertible Bonds
	(cost $1,690,779)				1,780,390

Corporate Bonds – 28.48%
Banking – 3.45%
	Abbey National Treasury Services
	4.00% 4/27/16		90,000		89,375
	Bank of America
	3.75% 7/12/16		65,000		65,388
	3.875% 3/22/17		90,000		90,598
	5.70% 1/24/22		70,000		74,241
	BB&T
	3.95% 3/22/22		190,000		190,883
	5.25% 11/1/19		115,000		126,415
•	BB&T Capital Trust IV
	6.82% 6/12/57		45,000		45,619

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Banking (continued)
	Capital One Capital V
	10.25% 8/15/39	USD	67,000	$	69,178
	City National 5.25% 9/15/20		90,000		90,650
	Cooperatieve Centrale
	Raiffeisen-Boerenleenbank
	3.875% 2/8/22		120,000		116,283
	Export-Import Bank of Korea
	5.00% 4/11/22		200,000		212,000
	Fifth Third Bancorp
	3.50% 3/15/22		280,000		274,156
•	Fifth Third Capital Trust IV
	6.50% 4/15/37		160,000		160,000
•#	HBOS Capital Funding 144A
	6.071% 6/29/49		70,000		50,225
#	HSBC Bank 144A
	4.75% 1/19/21		150,000		158,877
	HSBC Holdings
	4.00% 3/30/22		300,000		297,972
	JPMorgan Chase
	4.50% 1/24/22		100,000		104,240
	JPMorgan Chase Capital XXV
	6.80% 10/1/37		185,000		186,961
	KeyCorp 5.10% 3/24/21		270,000		298,134
	Korea Development Bank
	8.00% 1/23/14		100,000		110,481
	Lloyds TSB Bank
	4.20% 3/28/17		275,000		277,374
	PNC Funding
	3.30% 3/8/22		60,000		59,482
	5.125% 2/8/20		305,000		346,044
	5.625% 2/1/17		165,000		184,338
•#	PNC Preferred Funding Trust II 144A
	1.696% 3/31/49		100,000		76,827
	SunTrust Banks
	3.50% 1/20/17		105,000		107,218
	SVB Financial Group
	5.375% 9/15/20		150,000		162,499
	US Bank 6.30% 2/4/14		250,000		273,848
•	USB Capital IX
	3.50% 10/29/49		220,000		169,869
	Wachovia
	•0.937% 10/15/16		90,000		83,745
	5.25% 8/1/14		45,000		48,462
	5.625% 10/15/16		115,000		128,333
	Wells Fargo 3.50% 3/8/22		85,000		83,854
	Zions Bancorporation
	7.75% 9/23/14		73,000		79,980
					4,893,549
Basic Industry – 3.28%
	AK Steel 7.625% 5/15/20		65,000		63,050
	Alcoa
	5.40% 4/15/21		195,000		201,856
	6.75% 7/15/18		140,000		159,791
#	Algoma Acquisition 144A
	9.875% 6/15/15		34,000		31,110
#	Anglo American Capital
	144A 2.625% 4/3/17		200,000		200,447
	ArcelorMittal
	6.25% 2/25/22		180,000		182,331
	9.85% 6/1/19		115,000		138,561
#	Barrick Gold 144A
	3.85% 4/1/22		265,000		266,599
	5.25% 4/1/42		25,000		25,231
	Barrick North America Finance
	4.40% 5/30/21		155,000		163,688
	Century Aluminum
	8.00% 5/15/14		66,000		67,815
	CF Industries 7.125% 5/1/20		47,000		56,106
#	CODELCO 144A
	3.75% 11/4/20		100,000		102,950
	Compass Minerals International
	8.00% 6/1/19		37,000		40,330
	Domtar 4.40% 4/1/22		75,000		74,262
	Dow Chemical
	8.55% 5/15/19		288,000		377,958
#	FMG Resources August 2006 144A
	6.875% 4/1/22		25,000		24,438
	7.00% 11/1/15		55,000		56,375
	Georgia-Pacific
	#144A 5.40% 11/1/20		30,000		33,547
	8.00% 1/15/24		240,000		306,140
	Headwaters 7.625% 4/1/19		85,000		83,088
	Hexion U.S. Finance
	8.875% 2/1/18		42,000		43,680
	International Paper
	4.75% 2/15/22		230,000		242,846
	9.375% 5/15/19		25,000		33,077
#	LyondellBasell Industries 144A
	5.75% 4/15/24		200,000		200,000
#	MacDermid 144A
	9.50% 4/15/17		47,000		48,998
	Mohawk Industries
	6.375% 1/15/16		23,000		25,530
	Momentive Performance Materials
	11.50% 12/1/16		40,000		33,400
#	Murray Energy 144A
	10.25% 10/15/15		48,000		46,920
	Norcraft 10.50% 12/15/15		43,000		37,948
	Nortek 8.50% 4/15/21		75,000		74,625
	Novelis 8.75% 12/15/20		60,000		66,000
	Ply Gem Industries
	13.125% 7/15/14		40,000		40,600
	Rayonier 3.75% 4/1/22		95,000		93,416
	Rio Tinto Finance USA
	3.50% 3/22/22		390,000		391,530
	Ryerson
	•7.922% 11/1/14		4,000		3,780
	12.00% 11/1/15		57,000		58,710
	Smurfit Kappa Funding
	7.75% 4/1/15		43,000		43,430

(continues) 71

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Basic Industry (continued)
	Steel Dynamics 7.75% 4/15/16	USD	8,000	$	8,340
	Teck Resources
	3.00% 3/1/19		50,000		49,420
	5.20% 3/1/42		130,000		123,788
	Vale Overseas 4.375% 1/11/22		334,000		337,154
					4,658,865
Brokerage – 0.29%
•	Bear Stearns 4.923% 12/7/12	AUD	190,000		195,776
	Jefferies Group
	6.25% 1/15/36	USD	10,000		9,125
	6.45% 6/8/27		35,000		34,825
	Lazard Group 6.85% 6/15/17		152,000		167,290
					407,016
Capital Goods – 0.66%
	Anixter 10.00% 3/15/14		4,000		4,380
	Berry Plastics 9.75% 1/15/21		60,000		65,850
	Koninklijke Philips Electronics
	3.75% 3/15/22		100,000		100,800
	5.00% 3/15/42		170,000		170,307
	Kratos Defense & Security Solutions
	10.00% 6/1/17		30,000		32,625
#	Plastipak Holdings 144A
	10.625% 8/15/19		28,000		32,060
	Pregis 12.375% 10/15/13		64,000		64,398
	RBS Global 11.75% 8/1/16		43,000		45,634
#	Reynolds Group Issuer 144A
	9.00% 4/15/19		100,000		99,000
	Stanley Black & Decker
	3.40% 12/1/21		85,000		86,281
	Trimas 9.75% 12/15/17		28,000		31,080
#	URS 144A 5.00% 4/1/22		200,000		198,084
					930,499
Consumer Cyclical – 1.44%
	American Axle & Manufacturing
	7.875% 3/1/17		78,000		80,730
	CKE Restaurants
	11.375% 7/15/18		46,000		52,785
	Dave & Buster’s 11.00% 6/1/18		20,000		21,500
#	Delphi 144A 6.125% 5/15/21		75,000		80,250
	Ford Motor 7.45% 7/16/31		122,000		149,755
	Ford Motor Credit
	12.00% 5/15/15		100,000		124,250
	Hanesbrands 6.375% 12/15/20		60,000		61,950
	Historic TW 6.875% 6/15/18		230,000		282,280
	Host Hotels & Resorts
	#144A 5.25% 3/15/22		55,000		55,000
	5.875% 6/15/19		35,000		37,056
	6.00% 11/1/20		50,000		53,250
	#144A 6.00% 10/1/21		46,000		49,220
	Ingles Markets 8.875% 5/15/17		33,000		35,888
	Macy’s Retail Holdings
	3.875% 1/15/22		195,000		195,955
	5.90% 12/1/16		45,000		51,693
	Meritor 8.125% 9/15/15		75,000		79,500
	New Albertsons 7.25% 5/1/13		14,000		14,700
	OSI Restaurant Partners
	10.00% 6/15/15		35,000		36,400
#	Rite Aid 144A 9.25% 3/15/20		20,000		20,250
#	Sealy Mattress 144A
	10.875% 4/15/16		12,000		13,050
	Target 2.90% 1/15/22		110,000		108,951
	Tomkins 9.00% 10/1/18		67,000		74,538
	Tops Holding 10.125% 10/15/15		19,000		20,378
	Wyndham Worldwide
	4.25% 3/1/22		195,000		191,545
	5.625% 3/1/21		65,000		70,103
	5.75% 2/1/18		80,000		89,197
					2,050,174
Consumer Non-Cyclical – 3.11%
	Accellent 8.375% 2/1/17		35,000		35,350
#	AMGH Merger Sub 144A
	9.25% 11/1/18		55,000		57,475
#	Aristotle Holding 144A
	2.65% 2/15/17		80,000		80,996
	3.50% 11/15/16		40,000		41,826
	3.90% 2/15/22		45,000		45,576
	4.75% 11/15/21		35,000		37,530
	Biomet
	11.625% 10/15/17		28,000		30,415
	PIK 10.375% 10/15/17		23,000		24,898
	Bio-Rad Laboratories
	4.875% 12/15/20		20,000		20,564
	8.00% 9/15/16		18,000		20,070
	Boston Scientific 6.00% 1/15/20		115,000		132,205
	CareFusion 6.375% 8/1/19		185,000		215,288
	Celgene 3.95% 10/15/20		120,000		122,414
	Community Health Systems
	#144A 8.00% 11/15/19		25,000		26,000
	8.875% 7/15/15		5,000		5,188
	Del Monte 7.625% 2/15/19		60,000		60,000
#	Dole Food 144A 8.00% 10/1/16		28,000		29,540
	General Mills 3.15% 12/15/21		55,000		55,165
#	Heineken 144A 3.40% 4/1/22		200,000		198,944
	Jarden
	6.125% 11/15/22		40,000		42,100
	7.50% 1/15/20		5,000		5,450
#	Kinetic Concepts 144A
	12.50% 11/1/19		60,000		57,000
•	Kraft Foods 1.457% 7/10/13		155,000		156,047
	Medtronic 3.125% 3/15/22		95,000		95,651
#	Multiplan 144A 9.875% 9/1/18		60,000		65,100
	NBTY 9.00% 10/1/18		90,000		99,563
	PepsiCo 2.75% 3/5/22		135,000		131,633
#	Pernod-Ricard 144A
	2.95% 1/15/17		150,000		151,688
	Quest Diagnostics 4.70% 4/1/21		195,000		211,461

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Consumer Non-Cyclical (continued)
	Radnet Management
	10.375% 4/1/18	USD	23,000	$	23,000
#	SABMiller Holdings 144A
	2.45% 1/15/17		510,000		516,977
	3.75% 1/15/22		710,000		723,799
	Safeway 4.75% 12/1/21		105,000		108,756
	Sara Lee 4.10% 9/15/20		64,000		64,945
	Scotts Miracle-Gro
	6.625% 12/15/20		25,000		26,438
	Teva Pharmaceutical Finance IV
	3.65% 11/10/21		50,000		50,716
	Tyson Foods 10.50% 3/1/14		37,000		43,105
#	Woolworths 144A
	3.15% 4/12/16		45,000		46,677
	4.55% 4/12/21		175,000		188,506
	Yale University 2.90% 10/15/14		105,000		111,070
	Zimmer Holdings
	3.375% 11/30/21		160,000		160,794
	4.625% 11/30/19		90,000		99,461
					4,419,381
Energy – 5.00%
	AmeriGas Finance
	6.75% 5/20/20		55,000		55,963
	7.00% 5/20/22		15,000		15,338
	Antero Resources Finance
	9.375% 12/1/17		19,000		20,663
	Berry Petroleum 10.25% 6/1/14		12,000		13,920
#	BG Energy Capital 144A
	4.00% 10/15/21		200,000		208,984
#	Canadian Oil Sands 144A
	4.50% 4/1/22		100,000		100,938
	Chesapeake Energy
	6.50% 8/15/17		55,000		58,850
	6.625% 8/15/20		25,000		25,563
	Comstock Resources
	7.75% 4/1/19		25,000		23,375
#	Continental Resources 144A
	5.00% 9/15/22		45,000		45,281
	Copano Energy 7.75% 6/1/18		33,000		34,733
	Ecopetrol 7.625% 7/23/19		90,000		111,825
	El Paso Pipeline Partners
	Operating 6.50% 4/1/20		115,000		129,087
•	Enbridge Energy Partners
	8.05% 10/1/37		175,000		190,324
	Encana 3.90% 11/15/21		210,000		204,840
	Energy Transfer Partners
	4.65% 6/1/21		225,000		229,650
	6.05% 6/1/41		25,000		25,314
	9.70% 3/15/19		56,000		71,691
#	ENI 144A 4.15% 10/1/20		180,000		178,816
	Enterprise Products Operating
	•7.034% 1/15/68		190,000		204,493
	9.75% 1/31/14		150,000		172,207
	Forest Oil 7.25% 6/15/19		44,000		43,230
#	Helix Energy Solutions Group
	144A 9.50% 1/15/16		41,000		42,999
#	Hercules Offshore 144A
	10.50% 10/15/17		77,000		81,043
#	Hilcorp Energy I 144A
	7.625% 4/15/21		55,000		59,675
	HollyFrontier 9.875% 6/15/17		33,000		36,960
	Husky Energy 3.95% 4/15/22		370,000		373,254
	Inergy 6.875% 8/1/21		30,000		29,025
	Kinder Morgan Energy Partners
	3.95% 9/1/22		185,000		183,549
	9.00% 2/1/19		140,000		179,571
	Linn Energy
	#144A 6.25% 11/1/19		15,000		14,569
	#144A 6.50% 5/15/19		20,000		19,700
	8.625% 4/15/20		28,000		30,310
#	NFR Energy 144A
	9.75% 2/15/17		48,000		41,520
	NiSource Finance
	4.45% 12/1/21		30,000		31,354
	5.80% 2/1/42		100,000		107,110
	Noble Holding International
	3.95% 3/15/22		120,000		120,156
	5.25% 3/15/42		260,000		259,260
	Pemex Project Funding
	Master Trust
	6.625% 6/15/35		50,000		57,500
	Petrobras International Finance
	3.50% 2/6/17		60,000		61,648
	5.375% 1/27/21		258,000		279,089
	5.75% 1/20/20		75,000		83,460
	5.875% 3/1/18		15,000		16,900
	Petrohawk Energy 7.25% 8/15/18		135,000		155,081
	Petroleos de Venezuela
	9.00% 11/17/21		420,000		342,299
	12.75% 2/17/22		53,000		53,133
	Petroleum Development
	12.00% 2/15/18		48,000		52,320
	Plains All American Pipeline
	3.65% 6/1/22		175,000		172,164
	8.75% 5/1/19		140,000		182,602
	Pride International
	6.875% 8/15/20		245,000		299,260
	Quicksilver Resources
	9.125% 8/15/19		40,000		39,200
	Range Resources 5.00% 8/15/22		65,000		64,269
#	Samson Investment 144A
	9.75% 2/15/20		15,000		15,206
	SandRidge Energy 7.50% 3/15/21		20,000		19,800
#	Southwestern Energy 144A
	4.10% 3/15/22		100,000		99,326
•	TransCanada PipeLines
	6.35% 5/15/67		260,000		269,030

(continues) 73

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Energy (continued)
	Transocean
	5.05% 12/15/16	USD	55,000	$	58,963
	6.375% 12/15/21		280,000		315,626
	Weatherford International
	4.50% 4/15/22		45,000		44,935
	9.625% 3/1/19		105,000		139,342
	Williams
	7.75% 6/15/31		28,000		34,202
	8.75% 3/15/32		25,000		33,046
	Williams Partners
	4.00% 11/15/21		90,000		91,124
	7.25% 2/1/17		125,000		150,581
#	Woodside Finance 144A
	8.125% 3/1/14		160,000		177,441
	8.75% 3/1/19		10,000		12,708
					7,095,395
Financials – 1.26%
#	CDP Financial 144A
	4.40% 11/25/19		250,000		270,310
	E Trade Financial
	12.50% 11/30/17		73,000		85,319
	General Electric Capital
	4.65% 10/17/21		285,000		303,918
	5.50% 2/1/17	NZD	80,000		66,926
	6.00% 8/7/19	USD	265,000		309,924
•#	ILFC E-Capital Trust I 144A
	5.03% 12/21/65		125,000		83,770
	International Lease Finance
	5.875% 4/1/19		35,000		33,874
	6.25% 5/15/19		77,000		76,024
	8.25% 12/15/20		125,000		137,839
	8.75% 3/15/17		35,000		39,025
#	IPIC GMTN 144A 5.50% 3/1/22		200,000		206,750
#	Nuveen Investments 144A
	10.50% 11/15/15		70,000		72,538
	Syngenta Finance
	3.125% 3/28/22		95,000		95,829
					1,782,046
Insurance – 0.66%
	American International
	Group 5.85% 1/16/18		10,000		10,902
•	Chubb 6.375% 3/29/67		105,000		108,938
	Coventry Health Care
	5.45% 6/15/21		180,000		197,396
#	Highmark 144A
	4.75% 5/15/21		55,000		55,187
	6.125% 5/15/41		20,000		20,855
•	ING Groep 5.775% 12/29/49		60,000		51,900
•#	Liberty Mutual Group 144A
	7.00% 3/15/37		35,000		31,675
	MetLife
	6.40% 12/15/36		120,000		118,200
	6.817% 8/15/18		95,000		116,559
	Prudential Financial
	3.875% 1/14/15		25,000		26,342
	4.50% 11/15/20		35,000		37,199
	4.50% 11/16/21		45,000		47,878
	6.00% 12/1/17		50,000		58,325
•	XL Group 6.50% 12/29/49		70,000		59,675
					941,031
Media – 0.84%
	Affinion Group
	7.875% 12/15/18		60,000		54,900
	CBS 3.375% 3/1/22		200,000		193,465
	CCO Holdings
	7.00% 1/15/19		25,000		26,625
	7.375% 6/1/20		15,000		16,350
	Clear Channel Communications
	9.00% 3/1/21		35,000		31,675
#	Clear Channel Worldwide
	Holdings 144A
	7.625% 3/15/20		55,000		54,100
	DISH DBS 7.875% 9/1/19		40,000		46,200
	Interpublic Group
	4.00% 3/15/22		140,000		137,368
	Nielsen Finance
	11.50% 5/1/16		2,000		2,315
	11.625% 2/1/14		4,000		4,640
#	Sinclair Television Group 144A
	9.25% 11/1/17		33,000		36,878
#	Sirius XM Radio 144A
	8.75% 4/1/15		65,000		74,100
	Time Warner Cable
	5.50% 9/1/41		100,000		105,142
	8.25% 4/1/19		105,000		134,471
#	Univision Communications 144A
	6.875% 5/15/19		65,000		66,219
#	UPCB Finance III 144A
	6.625% 7/1/20		150,000		153,750
	Videotron 6.375% 12/15/15		4,000		4,105
#	XM Satellite Radio 144A
	13.00% 8/1/13		49,000		55,676
					1,197,979
Real Estate – 1.29%
	Alexandria Real Estate Equities
	4.60% 4/1/22		130,000		127,508
	American Tower
	4.70% 3/15/22		40,000		40,401
	5.90% 11/1/21		260,000		287,135
	Brandywine Operating
	Partnership 4.95% 4/15/18		100,000		102,103
	Developers Diversified Realty
	4.75% 4/15/18		55,000		57,050
	7.50% 4/1/17		35,000		39,753
	7.875% 9/1/20		108,000		127,929
	9.625% 3/15/16		33,000		39,987

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Real Estate (continued)
	Digital Realty Trust
	5.25% 3/15/21	USD	235,000	$	242,733
	Health Care REIT
	4.125% 4/1/19		185,000		183,802
	5.25% 1/15/22		145,000		151,962
	Regency Centers 4.80% 4/15/21		90,000		93,044
	UDR 4.625% 1/10/22		200,000		205,139
#	WEA Finance 144A
	4.625% 5/10/21		135,000		136,817
					1,835,363
Services – 0.68%
	Ameristar Casinos
	7.50% 4/15/21		65,000		68,494
	Beazer Homes USA
	9.125% 5/15/19		40,000		34,600
	Casella Waste Systems
	11.00% 7/15/14		10,000		10,750
#	Equinox Holdings 144A
	9.50% 2/1/16		9,000		9,669
	FTI Consulting 6.75% 10/1/20		5,000		5,381
	Geo Group 6.625% 2/15/21		40,000		42,050
	Iron Mountain 7.75% 10/1/19		15,000		16,463
	M/I Homes 8.625% 11/15/18		50,000		50,250
	Marina District Finance
	9.875% 8/15/18		25,000		22,563
	MGM Resorts International
	11.375% 3/1/18		138,000		164,737
	Mobile Mini 6.875% 5/1/15		13,000		13,195
	PHH 9.25% 3/1/16		140,000		142,975
	Pinnacle Entertainment
	8.75% 5/15/20		75,000		82,313
	Royal Caribbean Cruises
	7.00% 6/15/13		17,000		17,850
	RSC Equipment Rental
	10.25% 11/15/19		42,000		47,250
	Ryland Group 8.40% 5/15/17		33,000		36,630
	Standard Pacific
	10.75% 9/15/16		42,000		48,510
#	United Air Lines 144A
	12.00% 11/1/13		52,000		55,380
	Western Union 3.65% 8/22/18		70,000		74,947
	Wynn Las Vegas 7.75% 8/15/20		15,000		16,556
					960,563
Technology – 1.23%
	Amkor Technology
	7.375% 5/1/18		35,000		37,669
	Avaya
	#144A 7.00% 4/1/19		70,000		70,525
	9.75% 11/1/15		65,000		64,350
	PIK 10.125% 11/1/15		25,000		24,875
	Broadcom 2.70% 11/1/18		155,000		157,840
	CDW 12.535% 10/12/17		40,000		43,650
	First Data
	9.875% 9/24/15		30,000		30,300
	11.25% 3/31/16		70,000		63,700
	GXS Worldwide 9.75% 6/15/15		114,000		111,435
	Hewlett-Packard 4.05% 9/15/22		260,000		259,488
	Jabil Circuit 7.75% 7/15/16		9,000		10,305
	National Semiconductor
	6.60% 6/15/17		185,000		228,481
#	Seagate Technology International
	144A 10.00% 5/1/14		88,000		99,880
	Symantec 4.20% 9/15/20		85,000		86,862
	Tyco Electronics Group
	3.50% 2/3/22		185,000		180,728
#	Unisys 144A 12.75% 10/15/14		17,000		19,040
	Xerox
	4.50% 5/15/21		170,000		175,213
	6.35% 5/15/18		75,000		87,131
					1,751,472
Telecommunications – 2.28%
	CenturyLink 5.80% 3/15/22		100,000		97,833
#	Clearwire Communications 144A
	12.00% 12/1/15		121,000		119,790
	Cricket Communications
	7.75% 10/15/20		110,000		108,488
#	Crown Castle Towers 144A
	4.883% 8/15/20		385,000		396,814
#	Deutsche Telekom
	International Finance 144A
	2.25% 3/6/17		300,000		297,272
#	Digicel 144A 8.25% 9/1/17		110,000		117,425
#	DIRECTV Holdings 144A
	3.80% 3/15/22		315,000		311,313
	5.15% 3/15/42		55,000		53,781
	Frontier Communications
	6.25% 1/15/13		4,000		4,120
	Intelsat Bermuda
	11.25% 2/4/17		55,000		57,338
	PIK 11.50% 2/4/17		959		1,000
	Intelsat Jackson Holdings
	7.25% 10/15/20		60,000		63,225
	Level 3 Financing 10.00% 2/1/18		48,000		52,800
	MetroPCS Wireless
	6.625% 11/15/20		30,000		29,888
	NII Capital 10.00% 8/15/16		61,000		69,388
	PAETEC Holding
	8.875% 6/30/17		28,000		30,520
	Qwest
	6.75% 12/1/21		75,000		83,906
	8.375% 5/1/16		168,000		201,587
	Sprint Capital 8.75% 3/15/32		40,000		34,500

(continues) 75

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
Corporate Bonds (continued)
Telecommunications (continued)
	Sprint Nextel
	6.00% 12/1/16	USD	30,000	$	26,925
	8.375% 8/15/17		35,000		33,950
	#144A 9.125% 3/1/17		65,000		64,838
	Telefonica Emisiones
	6.421% 6/20/16		155,000		165,394
	Telesat Canada
	11.00% 11/1/15		111,000		119,048
	12.50% 11/1/17		19,000		21,328
	Virgin Media Secured Finance
	6.50% 1/15/18		400,000		436,499
#	Vivendi 144A 6.625% 4/4/18		115,000		129,351
	West 7.875% 1/15/19		25,000		26,750
#	Wind Acquisition Finance 144A
	11.75% 7/15/17		50,000		49,500
	Windstream
	7.875% 11/1/17		10,000		11,075
	8.125% 8/1/13		19,000		20,330
					3,235,976
Transportation – 0.39%
#	Brambles USA
	144A 3.95% 4/1/15		160,000		165,333
	Burlington Northern Santa Fe
	4.40% 3/15/42		190,000		180,353
	CSX 4.75% 5/30/42		30,000		29,209
#	ERAC USA Finance 144A
	5.25% 10/1/20		160,000		173,763
					548,658
Utilities – 2.62%
	AES 8.00% 6/1/20		31,000		35,728
	Ameren Illinois 9.75% 11/15/18		200,000		271,284
#	American Transmission Systems
	144A 5.25% 1/15/22		155,000		175,332
	Baltimore Gas & Electric
	3.50% 11/15/21		175,000		177,239
#	Calpine 144A 7.875% 7/31/20		40,000		43,700
	CenterPoint Energy
	5.95% 2/1/17		105,000		119,333
	CMS Energy
	4.25% 9/30/15		215,000		224,148
	6.25% 2/1/20		180,000		197,524
	ComEd Financing III
	6.35% 3/15/33		80,000		77,186
	Commonwealth Edison
	3.40% 9/1/21		215,000		222,125
	GenOn Energy
	9.875% 10/15/20		30,000		27,450
	Great Plains Energy
	5.292% 6/15/22		320,000		342,100
	Ipalco Enterprises
	5.00% 5/1/18		55,000		55,000
	Jersey Central Power & Light
	5.625% 5/1/16		35,000		39,361
	LG&E & KU Energy
	3.75% 11/15/20		110,000		109,732
	#144A 4.375% 10/1/21		130,000		133,891
•	NextEra Energy Capital Holdings
	6.35% 10/1/66		100,000		102,099
	NRG Energy
	7.625% 1/15/18		15,000		15,113
	7.875% 5/15/21		45,000		43,425
	PacifiCorp 2.95% 2/1/22		105,000		103,731
	Pennsylvania Electric
	5.20% 4/1/20		115,000		124,827
•	PPL Capital Funding
	6.70% 3/30/67		35,000		35,037
	Public Service Company of
	Oklahoma 5.15% 12/1/19		330,000		371,167
	Puget Energy 6.00% 9/1/21		45,000		47,977
•	Puget Sound Energy
	6.974% 6/1/67		176,000		180,634
	SCANA 4.125% 2/1/22		100,000		100,251
	Southwest Gas 3.875% 4/1/22		130,000		132,885
•	Wisconsin Energy 6.25% 5/15/67		200,000		206,224
					3,714,503
Total Corporate Bonds
	(cost $38,886,886)				40,422,470

Non-Agency Asset-Backed Securities – 0.76%
•	Ally Master Owner Trust
	Series 2011-1 A1
	2.742% 1/15/16		100,000		100,851
•	American Express
	Credit Account Master Trust
	Series 2010-1 B
	0.842% 11/16/15		100,000		100,158
#	Avis Budget Rental
	Car Funding AESOP
	Series 2011-2A A 144A
	2.37% 11/20/14		100,000		101,464
#	Cabela’s Master
	Credit Card Trust
	Series 2012-1A A1 144A
	1.63% 2/18/20		100,000		99,368
	Capital One Multi-Asset
	Execution Trust
	Series 2007-A7 A7
	5.75% 7/15/20		150,000		178,383
	CenterPoint Energy Transition
	Bond Series 2012-1 A2
	2.161% 10/15/21		100,000		100,394
#	CIT Equipment Collateral
	Series 2010-VT1A A3 144A
	2.41% 5/15/13		36,366		36,491
	CNH Equipment Trust
	Series 2010-A A4
	2.49% 1/15/16		105,000		107,178

		Principal		Value
		Amount°		(U.S. $)
Non-Agency Asset-Backed Securities (continued)
#	Ford Auto Securitization Trust
	Series 2011-R1A A3 144A
	3.02% 2/15/16	CAD	100,000	$	102,351
#	Golden Credit Card Trust
	Series 2012-2A A1 144A
	1.77% 1/15/19	USD	100,000		99,785
#	Sonic Capital
	Series 2011-1A A2 144A
	5.438% 5/20/41		43,875		45,715
Total Non-Agency Asset-Backed
	Securities (cost $1,058,980)				1,072,138

Non-Agency Collateralized Mortgage Obligations – 0.10%
	Bank of America Alternative
	Loan Trust
	Series 2005-3 2A1
	5.50% 4/25/20		4,700		4,826
	Series 2005-6 7A1
	5.50% 7/25/20		3,097		2,958
•	ChaseFlex Trust Series 2006-1 A4
	6.23% 6/25/36		100,000		74,319
	Citicorp Mortgage Securities
	Series 2006-4 3A1
	5.50% 8/25/21		7,956		7,801
	Wells Fargo Mortgage-Backed
	Securities Trust
	Series 2006-2 3A1
	5.75% 3/25/36		36,677		36,272
	•Series 2006-AR5 2A1
	2.638% 4/25/36		19,303		15,257
Total Non-Agency Collateralized
	Mortgage Obligations
	(cost $107,298)				141,433

ΔRegional Bonds – 1.46%
Australia – 1.19%
	New South Wales Treasury
	6.00% 4/1/19	AUD	573,000		647,959
	Queensland Treasury
	6.00% 9/14/17	AUD	197,000		219,926
	6.25% 6/14/19	AUD	726,000		826,429
					1,694,314
Canada – 0.27%
	Province of Ontario
	3.15% 6/2/22	CAD	287,000		288,332
	Province of Quebec
	4.25% 12/1/21	CAD	86,000		94,372
					382,704
Total Regional Bonds
	(cost $2,047,007)				2,077,018

«Senior Secured Loans – 2.70%
	99 Cents Only Stores Tranche B
	7.00% 10/4/18	USD	114,713		116,802
	AIG Tranche 2 7.00% 3/17/16		90,000		90,430
	Allied Security Holdings
	Tranche 2L 8.50% 1/21/18		35,000		35,117
	Attachmate 6.50% 11/21/16		102,375		101,928
	BNY ConvergEx Group
	7.50% 12/16/17		45,787		45,558
	(EZE Castle Software)
	8.75% 11/29/17		19,213		19,117
	Brock Holdings III
	10.00% 2/15/18		30,000		29,363
	Tranche B 6.00% 2/15/17		28,818		28,746
	Burlington Coat Factory
	Tranche B 6.25% 2/10/17		264,218		266,411
	Caesars Entertainment
	Operating Tranche B6
	5.494% 1/28/18		183,000		165,745
	Cengage Learning Acquisitions
	2.25% 7/3/14		45,000		41,591
	7.50% 7/7/14		122,145		118,557
	Charter Communications
	Operating Tranche B
	8.50% 3/6/14		2,688		2,693
	Chrysler Group 6.00% 4/28/17		169,833		172,824
	Clear Channel Communications
	Tranche A 3.40% 7/30/14		173,450		160,766
	Consolidated Container
	5.50% 9/28/14		40,000		38,200
	Delta Air Lines Tranche B
	5.50% 3/29/17		79,575		79,587
	Emdeon Tranche B
	6.75% 8/3/18		79,800		81,089
	First Data 5.00% 3/24/17		114,556		109,867
	Frac Tech International Tranche B
	6.25% 4/19/16		50,949		50,840
	GenOn Energy Tranche B
	6.00% 6/20/17		64,185		63,677
	Houghton International Tranche B1
	6.75% 1/11/16		34,500		34,651
	Immucor Tranche B
	7.25% 7/2/18		149,450		151,365
	Lawson Software Tranche B
	6.25% 3/16/18		100,000		99,000
	Level 3 Financing
	Tranche B2 5.75% 4/11/18		55,000		55,619
	Tranche B3 5.75% 9/1/18		70,000		70,788
	Lord & Taylor 5.75% 12/2/18		40,000		40,338
	Multiplan 4.75% 8/26/17		42,688		42,394
	Nuveen Investments
	5.50% 5/13/17		111,190		111,352
	8.25% 3/1/19		110,000		111,741

(continues) 77

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

		Principal		Value
		Amount°		(U.S. $)
«Senior Secured Loans (continued)
	OSI Restaurant Partners
	2.00% 6/14/13	USD	16,601	$	16,393
	2.53% 6/13/14		167,855		165,291
	PQ 6.79% 7/30/15		65,000		62,690
@	Prime Healthcare Services
	Tranche B 7.25% 4/28/15		124,642		122,305
	Protection One 5.75% 3/31/19		80,000		79,500
	Remy International Tranche B
	6.25% 12/16/16		62,666		62,979
	Reynolds Group Holdings
	Tranche C 6.50% 7/7/18		217,072		220,166
@	SandRidge Energy
	5.00% 2/2/17		65,000		65,000
	Sensus USA 2nd Lien
	8.50% 4/13/18		85,000		85,000
	Texas Competitive Electric
	Holdings 3.50% 10/10/14		55,000		33,694
	Toys R US Tranche B
	6.00% 9/1/16		94,410		94,732
	Univision Communications
	4.25% 3/29/17		233,301		216,742
	Visant 5.25% 12/31/16		66,156		64,716
Total Senior Secured Loans
	(cost $3,760,964)				3,825,364

ΔSovereign Bonds – 4.41%
Brazil – 0.18%
	Federal Republic of Brazil
	5.625% 1/7/41		124,000		143,530
	8.875% 10/14/19		80,000		113,480
					257,010
Canada – 0.20%
	Canadian Government
	3.75% 6/1/19	CAD	119,000		134,246
	4.00% 6/1/17	CAD	136,000		152,326
					286,572
Chile – 0.12%
	Chile Government
	International 5.50% 8/5/20	CLP	76,000,000		163,339
					163,339
Colombia – 0.09%
	Colombia Government
	International
	6.125% 1/18/41	USD	100,000		123,000
					123,000
Finland – 0.09%
	Finland Government
	4.00% 7/4/25	EUR	84,000		128,307
					128,307
Germany – 0.26%
	Deutschland Republic
	2.00% 1/4/22	EUR	151,000		204,998
	2.50% 1/4/21	EUR	53,036		75,762
	3.50% 7/4/19	EUR	58,000		88,929
					369,689
Indonesia – 0.13%
	Indonesia Government
	International
	7.25% 4/20/15	USD	47,000		53,756
	Indonesia Treasury Bond
	11.00% 11/15/20	IDR	901,000,000		132,014
					185,770
Malaysia – 0.04%
	Malaysia Government
	4.262% 9/15/16	MYR	159,000		53,906
					53,906
Mexico – 0.24%
	Mexican Bonos
	6.50% 6/10/21	MXN	708,000		56,721
	8.50% 5/31/29	MXN	1,852,700		166,181
	8.50% 11/18/38	MXN	562,500		49,273
	Mexico Government
	International
	4.75% 3/8/44	USD	70,000		68,775
					340,950
Norway – 1.09%
	Norwegian Government
	3.75% 5/25/21	NOK	760,000		147,745
	4.25% 5/19/17	NOK	580,000		113,211
	4.50% 5/22/19	NOK	3,158,000		635,299
	5.00% 5/15/15	NOK	3,395,000		656,315
					1,552,570
Panama – 0.13%
	Republic of Panama
	6.70% 1/26/36	USD	35,000		46,200
	7.25% 3/15/15		48,000		55,704
	8.875% 9/30/27		57,000		87,638
					189,542
Peru – 0.21%
	Republic of Peru
	5.625% 11/18/50		40,000		45,000
	7.125% 3/30/19		197,000		252,160
					297,160
Philippines – 0.11%
	Republic of Philippines
	6.50% 1/20/20		100,000		121,375
	9.50% 10/21/24		25,000		37,438
					158,813

		Principal		Value
		Amount°		(U.S. $)
ΔSovereign Bonds (continued)
Poland – 0.20%
	Poland Government
	5.25% 10/25/17	PLN	292,000	$	95,120
	5.25% 10/25/20	PLN	258,000		82,075
	Poland Government
	International
	5.00% 3/23/22	USD	102,000		108,019
					285,214
Republic of Korea – 0.06%
	Korea Treasury Inflation
	Linked 2.75% 6/10/20	KRW	87,424,917		88,839
					88,839
Russia – 0.38%
	Russian-Eurobond
	#144A 3.25% 4/4/17	USD	200,000		201,841
	7.50% 3/31/30		280,092		336,460
					538,301
South Africa – 0.41%
	South Africa Government
	7.25% 1/15/20	ZAR	929,000		117,515
	8.00% 12/21/18	ZAR	3,504,000		464,731
					582,246
Sweden – 0.22%
	Sweden Government
	3.00% 7/12/16	SEK	1,490,000		239,234
	5.00% 12/1/20	SEK	365,000		68,768
					308,002
United Kingdom – 0.16%
	United Kingdom Gilt
	4.25% 12/7/27	GBP	64,000		120,644
	4.50% 3/7/19	GBP	54,000		103,420
					224,064
Uruguay – 0.09%
	Republic of Uruguay
	8.00% 11/18/22	USD	87,000		120,278
					120,278
Total Sovereign Bonds
	(cost $6,049,580)				6,253,572

Supranational Banks – 0.17%
	International Bank for
	Reconstruction &
	Development
	3.25% 12/15/17	SEK	270,000		42,920
	3.375% 4/30/15	NOK	720,000		130,584
	3.625% 6/22/20	NOK	350,000		62,644
Total Supranational Banks
	(cost $227,925)				236,148

U.S. Treasury Obligations – 8.28%
	U.S. Treasury Bonds
	¥3.125% 11/15/41	USD	2,985,000		2,863,734
	3.125% 2/15/42		35,000		33,556
	U.S. Treasury Notes
	1.00% 3/31/17		4,315,000		4,305,563
	2.00% 2/15/22		4,645,000		4,556,458
Total U.S. Treasury Obligations
	(cost $11,922,126)				11,759,311

		Number of
		Shares
Preferred Stock – 0.31%
	Alabama Power 5.625%		2,475		63,484
•	PNC Financial Services
	Group 8.25%		25,000		25,746
•	U.S. Bancorp 6.50%		400		316,000
	Volkswagen		225		39,564
Total Preferred Stock
	(cost $406,547)				444,794

		Principal
		Amount°
Short-Term Investments – 11.76%
≠Discount Notes – 3.81%
	Federal Home Loan Bank
	0.04% 4/27/12	USD	2,524,948		2,524,931
	0.65% 4/25/12		2,880,718		2,880,701
					5,405,632
Repurchase Agreements – 5.97%
	Bank of America 0.03%,
	dated 3/30/12, to be
	repurchased on 4/2/12,
	repurchase price $2,524,955
	(collateralized by U.S.
	government obligations
	0.125%-4.125%
	12/31/13-5/15/15; market
	value $2,575,447)		2,524,949		2,524,949
	BNP Paribas 0.04%,
	dated 3/30/12, to be
	repurchased on 4/2/12,
	repurchase price $5,948,204
	(collateralized by U.S.
	government obligations
	1.375%-7.50%
	6/15/12-2/15/37; market
	value $6,067,148)		5,948,184		5,948,184
					8,473,133

(continues) 79

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

	Principal			Value
	Amount°			(U.S. $)
Short-Term Investments (continued)
≠U.S. Treasury Obligation – 1.98%
U.S. Treasury Bill
0.008% 4/19/12	USD	2,810,270		$	2,810,220
					2,810,220
Total Short-Term Investments
(cost $16,688,768)					16,688,985

Total Value of Securities – 107.34%
(cost $141,051,404)					152,351,638

		Number of
		Contracts
Option Written – (0.02%)
Put Option – (0.02%)
U.S. Bond Future, strike price
$139.00, expires 4/21/12 (JPMC)		(12	)		(24,375		)
Total Option Written
(premium received $(16,341))					(24,375		)

Liabilities Net of Receivables
and Other Assets – (7.32%)					(10,385,387		)«
Net Assets Applicable to 14,180,882
Shares Outstanding – 100.00%				$	141,941,876

Net Asset Value – Delaware Foundation
Conservative Allocation Fund Class A
($73,303,278 / 7,329,364 Shares)						$10.00
Net Asset Value – Delaware Foundation
Conservative Allocation Fund Class B
($612,136 / 60,743 Shares)						$10.08
Net Asset Value – Delaware Foundation
Conservative Allocation Fund Class C
($21,987,812 / 2,193,631 Shares)						$10.02
Net Asset Value – Delaware Foundation
Conservative Allocation Fund Class R
($3,347,350 / 334,751 Shares)						$10.00
Net Asset Value – Delaware Foundation
Conservative Allocation Fund Institutional Class
($42,691,300 / 4,262,393 Shares)						$10.02

Components of Net Assets at March 31, 2012:
Shares of beneficial interest
(unlimited authorization – no par)				$	131,359,306
Undistributed net investment income					128,862
Accumulated net realized loss on investments					(791,467		)
Net unrealized appreciation of investments
and derivatives					11,245,175
Total net assets				$	141,941,876

†	Non income producing security.
@	Illiquid security. At March 31, 2012, the aggregate value of illiquid securities was $971,847, which represented 0.68% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
§	Developed Markets – countries that are thought to be most developed and therefore less risky than emerging markets.
X	Emerging Markets – developing countries with relatively low per capita income, often with above-average economic growth potential but with more risk.
=	Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2012, the aggregate value of fair valued securities was $169,965, which represented 0.12% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2012, the aggregate value of Rule 144A securities was $11,359,932, which represented 8.00% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
°	Principal amount is stated in the currency in which each security is denominated.
•	Variable rate security. The rate shown or the rate as of March 31, 2012. Interest rates reset periodically.
w	Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes.
Φ	Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at March 31, 2012.
Δ	Securities have been classified by country of origin.
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at March 31, 2012.
¥	Fully or partially pledged as collateral for futures contracts.
≠	The rate shown is the effective yield at time of purchase.
«	Includes foreign currency valued at $299,199 with a cost of $295,519.

Net Asset Value and Offering Price Per Share –
Delaware Foundation Conservative Allocation Fund
Net asset value Class A (A)	$	10.00
Sales charge (5.75% of offering price) (B)		0.61
Offering price	$	10.61

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $50,000 or more.

The following foreign currency exchange contracts, futures contracts and swap contracts were outstanding at March 31, 2012:¹

Foreign Currency Exchange Contracts
								Unrealized
	Contracts to						Settlement	Appreciation
Counterparty	Receive (Deliver)			In Exchange For			Date	(Depreciation)
BAML	AUD	59,533		USD	(62,322	)	5/2/12		$	(892	)
BAML	BRL	719,670		USD	(390,594	)	5/2/12			674
BAML	EUR	(1,085,274	)	USD	1,432,165		5/2/12			(15,429	)
BAML	HUF	(222,543,500	)	USD	1,000,000		5/2/12			(3,391	)
BAML	JPY	(979,831	)	USD	11,379		5/2/12			(459	)
BAML	MXN	8,685,019		USD	(682,307	)	5/2/12			(5,616	)
BAML	NOK	(912,575	)	USD	158,290		5/2/12			(1,775	)
BAML	NZD	(36,207	)	USD	29,369		5/2/12			(210	)
BAML	RUB	15,636,020		USD	(531,232	)	5/2/12			(673	)
BAML	ZAR	(3,841,582	)	USD	499,674		5/2/12			1,276
BCLY	EUR	(111,504	)	USD	147,685		5/2/12			(1,045	)
BCLY	JPY	8,775,079		USD	(104,678	)	5/2/12			1,353
CITI	BRL	722,400		USD	(392,929	)	5/2/12			(176	)
CITI	EUR	(287,844	)	USD	379,820		5/2/12			(4,121	)
CITI	JPY	8,029,728		USD	(95,778	)	5/2/12			1,247
GSC	BRL	858,856		USD	(465,883	)	5/2/12			1,057
GSC	GBP	140,730		USD	(222,733	)	5/2/12			2,308
GSC	NOK	(276,800	)	USD	47,823		5/2/12			(727	)
GSC	RUB	7,729,800		USD	(262,338	)	5/2/12			(52	)
HSBC	AUD	(467,959	)	USD	487,098		5/2/12			4,221
HSBC	EUR	(45,774	)	USD	60,408		5/2/12			(648	)
HSBC	NOK	(1,796,799	)	USD	312,101		5/2/12			(3,056	)
HSBC	PLN	(731,952	)	USD	230,000		5/2/12			(4,577	)
JPMC	BRL	461,500		USD	(250,679	)	5/2/12			228
JPMC	EUR	(111,426	)	USD	146,971		5/2/12			(1,655	)
JPMC	NOK	(1,813,584	)	USD	314,177		5/2/12			(3,925	)
MNB	EUR	15,277		USD	(20,303	)	4/3/12			71
MNB	HKD	112,335		USD	(14,471	)	4/3/12			(5	)
MSC	AUD	(154,069	)	USD	160,041		5/2/12			1,060
MSC	EUR	(551,287	)	USD	727,211		5/2/12			(8,123	)
MSC	GBP	(71,866	)	USD	113,749		5/2/12			(1,173	)
MSC	JPY	56,530		USD	(1,888	)	5/2/12			(1,204	)
MSC	NOK	(1,384,025	)	USD	239,730		5/2/12			(3,027	)
MSC	RUB	7,189,225		USD	(244,075	)	5/2/12			(131	)
									$	(48,595	)

Futures Contracts

										Unrealized
		Notional Cost				Notional			Expiration	Appreciation
Contracts to Buy (Sell)		(Proceeds)				Value			Date	(Depreciation)
7	Euro-Bund		$	1,273,129		$	1,292,880		6/12/12		$	19,751
1	Long Gilt			180,935			183,153		6/30/12			2,218
(17)	U.S. Treasury
	10 yr Notes			(2,208,827	)		(2,201,234	)	6/29/12			7,593
(9)	U.S. Treasury
	Long Bond			(1,227,213	)		(1,240,031	)	6/21/12			(12,818	)
			$	(1,981,976	)						$	16,744

Swap Contracts
CDS Contracts

				Annual			Unrealized
	Swap Referenced	Notional		Protection	Termination		Appreciation
Counterparty	Obligation	Value		Payments	Date		(Depreciation)
	Protection Purchased:
	ITRAXX Europe
	Subordinate
	Financials 17.1
BAML	5 yr CDS	EUR	745,000	5.00%		6/20/17		$	18,549
	Kingdom of Spain
BAML	5 yr CDS	USD	189,000	1.00%		12/20/15			4,547
	ITRAXX Europe
	Subordinate
	Financials 17.1
BCLY	5 yr CDS	EUR	1,130,000	5.00%		6/20/17			27,772
	Kingdom of Spain
BCLY	5 yr CDS	USD	186,000	1.00%		3/20/15			13,010
BCLY	5 yr CDS		100,000	1.00%		3/21/16			2,916
	Republic of France
BCLY	5 yr CDS		266,000	0.25%		9/20/16			(4,338	)
	Republic of France
GSC	5 yr CDS		114,000	0.25%		9/20/16			(1,658	)
	ITRAXX Europe
	Crossover 16.1
JPMC	5 yr CDS	EUR	1,030,000	5.00%		12/20/16			(57,038	)
	Kingdom of Belgium
JPMC	5 yr CDS	USD	119,000	1.00%		3/20/17			(5,483	)
	Kingdom of Spain
JPMC	5 yr CDS		143,000	1.00%		3/20/17			3,526
	MeadWestvaco
JPMC	5 yr CDS		90,000	1.00%		12/20/16			(3,551	)
	Republic of France
JPMC	5 yr CDS		190,000	0.25%		9/20/16			(3,053	)
	Japan
MSC	5 yr CDS		190,000	1.00%		9/20/16			(2,262	)
MSC	5 yr CDS		306,000	1.00%		3/20/17			(6,358	)
	Kingdom of Belgium
MSC	5 yr CDS		374,000	1.00%		12/20/16			(14,527	)
	Kingdom of Spain
MSC	5 yr CDS		286,000	1.00%		6/20/16			15,950
MSC	5 yr CDS		270,000	1.00%		9/20/16			2,721
MSC	5 yr CDS		260,000	1.00%		3/20/17			3,389
	Republic of France
MSC	5 yr CDS		228,000	0.25%		12/20/16			(4,124	)
	Republic of Italy
MSC	5 yr CDS		200,000	1.00%		9/20/16			3,030
MSC	5 yr CDS		119,000	1.00%		3/20/17			(6,097	)
								$	(13,079	)

(continues) 81

Statements of net assets

Delaware Foundation^® Conservative Allocation Fund

Annual

Unrealized

Swap Referenced

Notional

Protection

Termination

Appreciation

Counterparty

Obligation

Value

Payments

Date

(Depreciation)

Protection Sold /

Moody’s Rating:

Georgia Pacific

JPMC

5 yr CDS / Baa

USD

90,000

1.00%

12/20/16

3,012

Tyson Foods

JPMC

CDS / Ba

95,000

1.00%

3/20/16

3,090

6,102

Total

(6,977

)

¹See Note 8 in “Notes to financial statements.”

Summary of Abbreviations:
ADR — American Depositary Receipt
AUD — Australian Dollar
BAML — Bank of America Merrill Lynch
BCLY — Barclays Bank
BRL — Brazilian Real
CAD — Canadian Dollar
CDS — Credit Default Swap
CITI — Citigroup Global Markets
CLP — Chilean Peso
CVA — Dutch Certificate
EUR — European Monetary Unit
GBP — British Pound Sterling
GDR — Global Depositary Receipt
GNMA — Government National Mortgage Association
GSC — Goldman Sachs Capital
HKD — Hong Kong Dollar
HSBC — Hong Kong Shanghai Bank
HUF — Hungarian Forint
IDR — Indonesian Rupiah
JPMC — JPMorgan Chase Bank
JPY — Japanese Yen
KRW — South Korean Won
MNB — Mellon National Bank
MSC — Morgan Stanley Capital
MXN — Mexican Peso
MYR — Malaysian Ringgit
NCUA — National Credit Union Administration
NOK — Norwegian Kroner
NVDR — Non-Voting Depositary Receipt
NZD — New Zealand Dollar
PIK — Pay-in-kind
PLN — Polish Zloty
REIT — Real Estate Investment Trust
REMIC — Real Estate Mortgage Investment Conduit
RUB — Russian Ruble
SEK — Swedish Krona
S.F. — Single Family
TBA — To be announced
USD — United States Dollar
yr — year
ZAR — South African Rand

See accompanying notes, which are an integral part of the financial statements.

Statements of assets and liabilities

Delaware Foundation Funds^®Six Months Ended March 31, 2012 (Unaudited)

			Delaware		Delaware			Delaware
	Delaware		Foundation		Foundation			Foundation
	Foundation		Growth		Moderate			Conservative
	Equity		Allocation		Allocation			Allocation
	Fund		Fund		Fund			Fund
Assets:
Investments, at value	$	1,705,851	$	98,212,725	$	383,986,728		$	135,662,653
Short-term investments, at value		95,569		7,048,083		34,649,487			16,688,985
Short-term investments held as collateral for loaned securities, at value		2,639		—		—			—
Cash		1,453		23,268		—			57,498
Restricted cash		—		—		230,000			110,000
Foreign currencies, at value		21,489		285,307		874,325			299,199
Receivable for fund shares sold		519		99,186		283,518			582,107
Receivable for securities sold		2,572		2,468,512		14,810,467			10,111,689
Unrealized gain on foreign currency exchange contracts		2		892		4,143			2,960
Dividends and interest receivable		4,959		460,198		2,335,548			992,110
Due from DMC		13,950		—		—			—
Securities lending income receivable		3		—		—			—
Variation margin receivable on futures contracts		—		—		156,527			—
Unrealized gain on credit default swap contracts¹		—		41,927		285,622			151,632
Other assets		—		—		6,954			—
Total assets		1,849,006		108,640,098		437,623,319			164,658,833

Liabilities:
Cash overdraft		—		—		35,607			—
Options written, at value		—		6,093		52,813			24,375
Payable for securities purchased		30,460		5,621,594		34,628,507			22,276,500
Payable for fund shares redeemed		—		124,266		47,200			191,950
Variation margin receivable on futures contracts		—		1,966		—			5,974
Unrealized loss on foreign currency exchange contracts		—		13,776		103,686			51,555
Obligation to return securities lending collateral		2,639		—		—			—
Due to manager and affiliates		202		67,310		298,093			102,754
Annual protection payments on swap contracts		—		2,054		14,876			7,406
Other accrued expenses		21,391		41,924		143,285			50,451
Other liabilities		—		774		10,619			5,992
Total liabilities		54,692		5,879,757		35,334,685			22,716,957

Total Net Assets	$	1,794,314	$	102,760,341	$	402,288,633		$	141,941,876

Investments, at cost	$	1,432,228	$	83,907,111	$	334,793,892		$	124,362,636
Short-term investments, at cost		95,568		7,047,994		34,649,042			16,688,768
Short-term investments held as collateral for loaned securities, at cost		2,639		—		—			—
Options written, at cost		—		4,288		(35,723	)		(16,341	)
Foreign currencies, at cost		21,584		280,765		852,888			295,519

¹Including upfront payments received		—		42,404		297,883			158,609

See accompanying notes, which are an integral part of the financial statements.

Statements of operations

Delaware Foundation Funds^®Six Months Ended March 31, 2012 (Unaudited)

				Delaware			Delaware			Delaware
	Delaware			Foundation			Foundation			Foundation
	Foundation^®			Growth			Moderate			Conservative
	Equity			Allocation			Allocation			Allocation
	Fund			Fund			Fund			Fund
Investment Income:
Interest	$	23		$	434,186		$	3,112,783		$	1,532,278
Dividends		15,147			693,095			2,086,466			493,457
Securities lending income		27			—			—			—
Foreign tax withheld		(436	)		(21,960	)		(64,086	)		(14,174	)
		14,761			1,105,321			5,135,163			2,011,561

Expenses:
Management fees		5,302			309,382			1,226,847			424,727
Distribution expenses – Class A		499			62,846			293,650			105,368
Distribution expenses – Class B		—			12,317			14,702			3,102
Distribution expenses – Class C		121			31,844			82,897			94,719
Distribution expenses – Class R		19			32,412			61,132			9,262
Dividend disbursing and transfer agent fees and expenses		864			107,601			314,305			132,688
Custodian fees		31,384			49,183			59,228			55,048
Registration fees		26,940			32,736			36,288			34,413
Accounting and administration expenses		319			18,680			74,076			25,283
Pricing fees		5,539			14,654			17,201			15,737
Audit and tax		6,247			8,761			12,765			17,093
Reports and statements to shareholders		2,383			6,239			33,410			6,301
Legal fees		94			5,828			16,749			7,528
Dues and services		4,289			4,671			5,005			4,698
Trustees’ fees		42			2,446			9,710			3,351
Insurance fees		11			817			1,645			1,058
Consulting fees		11			388			1,073			501
Trustees’ expenses		3			182			742			246
		84,067			700,987			2,261,425			941,123
Less fees waived		(75,807	)		(133,996	)		(113,454	)		(154,657	)
Less waived distribution expenses – Class A		(83	)		(10,474	)		(46,914	)		(17,561	)
Less waived distribution expenses – Class B		—			(9,238	)		—			(2,326	)
Less waived distribution expenses – Class R		(3	)		(5,402	)		(10,189	)		(1,544	)
Less expense paid indirectly		(1	)		(30	)		(112	)		(28	)
Total operating expenses		8,173			541,847			2,090,756			765,007
Net Investment Income		6,588			563,474			3,044,407			1,246,554

				Delaware			Delaware			Delaware
	Delaware			Foundation			Foundation			Foundation
	Foundation^®			Growth			Moderate			Conservative
	Equity			Allocation			Allocation			Allocation
	Fund			Fund			Fund			Fund
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(10,207	)		105,514			828,714			527,699
Foreign currencies		(287	)		(4,580	)		(10,034	)		(3,392	)
Foreign currency exchange contracts		(487	)		(107,383	)		(584,935	)		(223,432	)
Futures contracts		—			74,620			545,237			263,149
Options written		—			6,006			97,412			45,012
Swap contracts		—			(171,452	)		(1,220,858	)		(613,713	)
Net realized loss		(10,981	)		(97,275	)		(344,464	)		(4,677	)
Net change in unrealized appreciation (depreciation) on:
Investments		327,912			14,837,272			46,905,884			11,672,603
Foreign currencies		1,245			47,820			208,992			42,993
Foreign currency exchange contracts		(1	)		(35,979	)		(270,429	)		(134,172	)
Futures contracts		—			(73,452	)		(549,754	)		(283,918	)
Options written		—			(1,805	)		(17,090	)		(8,034	)
Swap contracts		—			(46,835	)		(353,147	)		(171,723	)
Net change in unrealized appreciation (depreciation)		329,156			14,727,021			45,924,456			11,117,749
Net Realized and Unrealized Gain		318,175			14,629,746			45,579,992			11,113,072

Net Increase in Net Assets Resulting from Operations	$	324,763		$	15,193,220		$	48,624,399		$	12,359,626

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets

Delaware Foundation Funds^®

	Delaware Foundation^®						Delaware Foundation
	Equity Fund						Growth Allocation Fund
	Six Months			Year			Six Months			Year
	Ended			Ended			Ended			Ended
	3/31/12			9/30/11			3/31/12			9/30/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	6,588		$	21,411		$	563,474		$	1,481,599
Net realized gain (loss)		(10,981	)		37,781			(97,275	)		2,771,724
Net change in unrealized appreciation (depreciation)		329,156			(173,330	)		14,727,021			(7,611,064	)
Net increase (decrease) in net assets resulting from operations		324,763			(114,138	)		15,193,220			(3,357,741	)

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,962	)		(1,878	)		(626,554	)		(593,892	)
Class B		—			—			(37,281	)		(29,061	)
Class C		(34	)		(21	)		(50,094	)		(60,894	)
Class R		(39	)		(48	)		(127,290	)		(113,903	)
Institutional Class		(14,688	)		(14,835	)		(581,974	)		(538,214	)

Net realized gain on investments:
Class A		(9,883	)		(5,046	)		(1,062,601	)		—
Class B		—			—			(63,226	)		—
Class C		(716	)		(171	)		(165,445	)		—
Class R		(182	)		(163	)		(257,660	)		—
Institutional Class		(37,934	)		(32,007	)		(843,201	)		—
		(66,438	)		(54,169	)		(3,815,326	)		(1,335,964	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		73,704			346,502			3,478,911			11,016,361
Class B		—			—			27,057			82,569
Class C		3,972			26,397			552,230			1,899,357
Class R		—			—			2,340,038			4,305,307
Institutional Class		28,969			257,513			4,981,343			8,078,941

Net asset value of shares issued upon reinvestment of dividends and distributions:
Class A		11,614			5,835			1,653,746			571,064
Class B		—			—			98,537			28,477
Class C		750			191			211,259			59,182
Class R		221			210			383,238			113,319
Institutional Class		52,622			46,842			1,420,887			537,583
		171,852			683,490			15,147,246			26,692,160

	Delaware Foundation^®						Delaware Foundation
	Equity Fund						Growth Allocation Fund
	Six Months			Year			Six Months			Year
	Ended			Ended			Ended			Ended
	3/31/12			9/30/11			3/31/12			9/30/11
	(Unaudited)						(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(3,029	)	$	(143,190	)	$	(4,525,884	)	$	(8,092,818	)
Class B		—			—			(581,524	)		(889,134	)
Class C		—			(9,456	)		(793,811	)		(2,441,727	)
Class R		—			—			(1,623,466	)		(1,883,064	)
Institutional Class		(107,657	)		(155,714	)		(3,852,328	)		(5,837,769	)
		(110,686	)		(308,360	)		(11,377,013	)		(19,144,512	)
Increase in net assets derived from capital share transactions		61,166			375,130			3,770,233			7,547,648
Net Increase in Net Assets		319,491			206,823			15,148,127			2,853,943

Net Assets:
Beginning of period		1,474,823			1,268,000			87,612,214			84,758,271
End of period	$	1,794,314		$	1,474,823		$	102,760,341		$	87,612,214

Undistributed net investment income	$	609		$	12,544		$	204,808		$	1,099,382

See accompanying notes, which are an integral part of the financial statements.

(continues) 87

Statements of changes in net assets

Delaware Foundation Funds^®

	Delaware Foundation^®						Delaware Foundation
	Moderate Allocation Fund						Conservative Allocation Fund
	Six Months			Year			Six Months			Year
	Ended			Ended			Ended			Ended
	3/31/12			9/30/11			3/31/12			9/30/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,044,407		$	6,783,350		$	1,246,554		$	2,753,668
Net realized gain (loss) on investments and foreign currencies		(344,464	)		16,080,106			(4,677	)		3,135,885
Net change in unrealized appreciation (depreciation)		45,924,456			(32,651,376	)		11,117,749			(6,541,963	)
Net increase (decrease) in net assets resulting from operations		48,624,399			(9,787,920	)		12,359,626			(652,410	)

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,332,628	)		(3,868,384	)		(716,563	)		(1,528,834	)
Class B		(18,304	)		(39,185	)		(5,982	)		(20,387	)
Class C		(111,340	)		(163,342	)		(126,128	)		(233,833	)
Class R		(198,102	)		(225,762	)		(26,478	)		(47,853	)
Institutional Class		(1,556,717	)		(1,685,531	)		(424,977	)		(803,726	)

Net realized gain on investments:
Class A		—			—			(1,855,590	)		(1,735,268	)
Class B		—			—			(16,086	)		(26,029	)
Class C		—			—			(485,359	)		(371,858	)
Class R		—			—			(74,412	)		(54,947	)
Institutional Class		—			—			(891,838	)		(861,642	)
		(4,217,091	)		(5,982,204	)		(4,623,413	)		(5,684,377	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		11,509,875			28,163,456			9,799,090			23,653,820
Class B		64,255			305,193			109,343			245,405
Class C		3,487,628			6,709,516			5,187,696			11,356,442
Class R		1,988,499			14,890,335			710,388			2,047,689
Institutional Class		16,151,071			66,208,993			14,791,247			15,608,367

Net asset value of shares issued upon reinvestment of dividends and distributions:
Class A		1,964,833			3,174,676			2,503,158			3,100,597
Class B		17,899			36,728			20,489			30,493
Class C		100,398			152,143			556,396			536,181
Class R		198,102			225,754			100,890			102,800
Institutional Class		1,284,785			1,649,802			1,284,466			1,591,588
		36,767,345			121,516,596			35,063,163			58,273,382

	Delaware Foundation^®						Delaware Foundation
	Moderate Allocation Fund						Conservative Allocation Fund
	Six Months			Year			Six Months			Year
	Ended			Ended			Ended			Ended
	3/31/12			9/30/11			3/31/12			9/30/11
	(Unaudited)						(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(13,864,384	)	$	(28,042,077	)	$	(9,302,385	)	$	(12,651,032	)
Class B		(797,093	)		(1,398,761	)		(121,444	)		(614,399	)
Class C		(2,209,664	)		(4,512,322	)		(2,059,029	)		(4,319,025	)
Class R		(1,594,826	)		(2,464,813	)		(874,020	)		(331,265	)
Institutional Class		(6,977,454	)		(13,275,105	)		(9,251,487	)		(12,287,920	)
		(25,443,421	)		(49,693,078	)		(21,608,365	)		(30,203,641	)
Increase in net assets derived from capital share transactions		11,323,924			71,823,518			13,454,798			28,069,741
Net Increase in Net Assets		55,731,232			56,053,394			21,191,011			21,732,954

Net Assets:
Beginning of period		346,557,401			290,504,007			120,750,865			99,017,911
End of period	$	402,288,633		$	346,557,401		$	141,941,876		$	120,750,865

Undistributed (accumulated) net investment income (loss)	$	(581,942	)	$	943,218		$	128,862		$	283,878

See accompanying notes, which are an integral part of the financial statements.

Financial highlights

Delaware Foundation^® Equity Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months								8/31/09²
	Ended			Year Ended					to
	3/31/12¹				9/30/11		9/30/10		9/30/09
	(Unaudited)
Net asset value, beginning of period		$8.850			$9.760		$8.880		$8.500

Income (loss) from investment operations:
Net investment income³		0.031			0.115		0.093		0.008
Net realized and unrealized gain (loss)		1.905			(0.649	)	0.839		0.372
Total from investment operations		1.936			(0.534	)	0.932		0.380

Less dividends and distributions from:
Net investment income		(0.089	)		(0.102	)	(0.009	)	—
Net realized gain on investments		(0.297	)		(0.274	)	(0.043	)	—
Total dividends and distributions		(0.386	)		(0.376	)	(0.052	)	—

Net asset value, end of period		$10.400			$8.850		$9.760		$8.880

Total return⁴		22.41%			(5.99%	)	10.53%		4.47%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$421			$287		$116		$5
Ratio of expenses to average net assets		1.18%			1.18%		1.16%		1.16%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		10.53%			10.09%		19.15%		31.53%
Ratio of net investment income to average net assets		0.63%			1.10%		1.01%		1.11%
Ratio of net investment loss to average net assets
prior to fees waived and expense paid indirectly		(8.72%	)		(7.81%	)	(16.98%	)	(29.26%	)
Portfolio turnover		22%			69%		42%		109%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

² Date of commencement of operations; ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

⁴ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Equity Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months							8/31/09²
	Ended			Year Ended				to
	3/31/12¹			9/30/11		9/30/10		9/30/09
	(Unaudited)
Net asset value, beginning of period		$8.790		$9.690		$8.880		$8.500

Income (loss) from investment operations:
Net investment income (loss)³		(0.006	)	0.038		0.024		0.003
Net realized and unrealized gain (loss)		1.887		(0.631	)	0.829		0.377
Total from investment operations		1.881		(0.593	)	0.853		0.380

Less dividends and distributions from:
Net investment income		(0.014	)	(0.033	)	—	⁴	—
Net realized gain on investments		(0.297	)	(0.274	)	(0.043	)	—
Total dividends and distributions		(0.311	)	(0.307	)	(0.043	)	—

Net asset value, end of period		$10.360		$8.790		$9.690		$8.880

Total return⁵		21.82%		(6.56%	)	9.63%		4.47%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$29		$20		$6		$6
Ratio of expenses to average net assets		1.93%		1.93%		1.91%		1.91%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		11.23%		10.79%		19.85%		32.23%
Ratio of net investment income (loss) to average net assets		(0.12%	)	0.35%		0.26%		0.36%
Ratio of net investment loss to average net assets
prior to fees waived and expense paid indirectly		(9.42%	)	(8.51%	)	(17.68%	)	(29.96%	)
Portfolio turnover		22%		69%		42%		109%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

² Date of commencement of operations; ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

⁴ For the year ended September 30, 2010, net investment income on investment distributions of $2 was made by the Fund, which calculated to de minimus amount of 0.000 per share.

⁵ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 91

Financial highlights

Delaware Foundation^® Equity Fund Class R

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months								8/31/09²
	Ended			Year Ended					to
	3/31/12¹				9/30/11		9/30/10		9/30/09
	(Unaudited)
Net asset value, beginning of period		$8.830			$9.740		$8.880		$8.500

Income (loss) from investment operations:
Net investment income³		0.018			0.088		0.070		0.006
Net realized and unrealized gain (loss)		1.903			(0.644	)	0.836		0.374
Total from investment operations		1.921			(0.556	)	0.906		0.380

Less dividends and distributions from:
Net investment income		(0.064	)		(0.080	)	(0.003	)	—
Net realized gain on investments		(0.297	)		(0.274	)	(0.043	)	—
Total dividends and distributions		(0.361	)		(0.354	)	(0.046	)	—

Net asset value, end of period		$10.390			$8.830		$9.740		$8.880

Total return⁴		22.25%			(6.21%	)	10.23%		4.47%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$6			$5		$6		$5
Ratio of expenses to average net assets		1.43%			1.43%		1.41%		1.41%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		10.83%			10.39%		19.45%		31.83%
Ratio of net investment income to average net assets		0.38%			0.85%		0.76%		0.86%
Ratio of net investment loss to average net assets
prior to fees waived and expense paid indirectly		(9.02%	)		(8.11%	)	(17.28%	)	(29.56%	)
Portfolio turnover		22%			69%		42%		109%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

² Date of commencement of operations; ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

⁴ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Equity Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months								8/31/09²
	Ended			Year Ended					to
	3/31/12¹				9/30/11		9/30/10		9/30/09
	(Unaudited)
Net asset value, beginning of period		$8.870			$9.780		$8.880			$8.500

Income (loss) from investment operations:
Net investment income³		0.043			0.141		0.116			0.010
Net realized and unrealized gain (loss)		1.909			(0.650	)	0.845			0.370
Total from investment operations		1.952			(0.509	)	0.961			0.380

Less dividends and distributions from:
Net investment income		(0.115	)		(0.127	)	(0.018	)		—
Net realized gain on investments		(0.297	)		(0.274	)	(0.043	)		—
Total dividends and distributions		(0.412	)		(0.401	)	(0.061	)		—

Net asset value, end of period		$10.410			$8.870		$9.780			$8.880

Total return⁴		22.58%			(5.66%	)	10.75%			4.47%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$1,338			$1,163		$1,140			$1,030
Ratio of expenses to average net assets		0.93%			0.93%		0.91%			0.91%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		10.23%			9.79%		18.85%			31.23%
Ratio of net investment income to average net assets		0.88%			1.35%		1.26%			1.36%
Ratio of net investment loss to average net assets
prior to fees waived and expense paid indirectly		(8.42%	)		(7.51%	)	(16.68%	)		(28.96%	)
Portfolio turnover		22%			69%		42%			109%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

² Date of commencement of operations; ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

⁴ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 93

Financial highlights

Delaware Foundation^® Growth Allocation Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2				9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$8.970			$9.390		$8.670		$8.340		$11.350		$10.610

Income (loss) from investment operations:
Net investment income³		0.057			0.158		0.158		0.191		0.103		0.107
Net realized and unrealized gain (loss)		1.482			(0.426	)	0.745		0.385		(2.519	)	1.372
Total from investment operations		1.539			(0.268	)	0.903		0.576		(2.416	)	1.479

Less dividends and distributions from:
Net investment income		(0.148	)		(0.152	)	(0.183	)	—		(0.267	)	(0.163	)
Net realized gain on investments		(0.251	)		—		—		(0.246	)	(0.327	)	(0.576	)
Total dividends and distributions		(0.399	)		(0.152	)	(0.183	)	(0.246	)	(0.594	)	(0.739	)

Net asset value, end of period		$10.110			$8.970		$9.390		$8.670		$8.340		$11.350

Total return⁴		17.59%			(3.00%	)	10.53%		7.85%		(22.51%	)	14.52%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$44,244			$38,595		$37,248		$30,085		$27,329		$38,495
Ratio of expenses to average net assets		1.15%			1.15%		1.12%		1.11%		0.81%		0.81%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.48%			1.54%		1.66%		1.79%		1.12%		1.05%
Ratio of net investment income to average net assets		1.17%			1.58%		1.77%		2.65%		1.04%		0.98%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.84%			1.19%		1.23%		1.97%		0.73%		0.74%
Portfolio turnover		53%			110%		98%		94%		108%		8%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

² On September 22, 2008, the Fund was restructured to invest directly in a combination of underlying securities representing a variety of asset classes and investment styles. Prior to September 22, 2008, the Fund invested only in other open-end investment companies (mutual funds). The restructuring caused significant changes in the Fund’s income, expense, and portfolio turnover. Select data is not comparable to prior years.

³ The average shares outstanding method has been applied for per share information.

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Growth Allocation Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2				9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$8.800			$9.170		$8.480		$8.230		$11.200		$10.480

Income (loss) from investment operations:
Net investment income³		0.055			0.135		0.089		0.138		0.029		0.026
Net realized and unrealized gain (loss)		1.454			(0.419	)	0.728		0.358		(2.487	)	1.355
Total from investment operations		1.509			(0.284	)	0.817		0.496		(2.458	)	1.381

Less dividends and distributions from:
Net investment income		(0.148	)		(0.086	)	(0.127	)	—		(0.185	)	(0.085	)
Net realized gain on investments		(0.251	)		—		—		(0.246	)	(0.327	)	(0.576	)
Total dividends and distributions		(0.399	)		(0.086	)	(0.127	)	(0.246	)	(0.512	)	(0.661	)

Net asset value, end of period		$9.910			$8.800		$9.170		$8.480		$8.230		$11.200

Total return⁴		17.59%			(3.18%	)	9.71%		7.09%		(23.14%	)	13.66%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$2,282			$2,437		$3,274		$3,797		$4,573		$7,908
Ratio of expenses to average net assets		1.15%			1.35%		1.87%		1.86%		1.56%		1.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		2.18%			2.24%		2.36%		2.49%		1.82%		1.75%
Ratio of net investment income to average net assets		1.17%			1.38%		1.02%		1.90%		0.29%		0.23%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.14%			0.49%		0.53%		1.27%		0.03%		0.04%
Portfolio turnover		53%			110%		98%		94%		108%		8%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

⁴ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects a waiver by the manager and/or distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 95

Financial highlights

Delaware Foundation^® Growth Allocation Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2				9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$8.760			$9.180		$8.490		$8.240		$11.210		$10.490

Income (loss) from investment operations:
Net investment income³		0.020			0.081		0.089		0.138		0.029		0.026
Net realized and unrealized gain (loss)		1.447			(0.415	)	0.728		0.358		(2.487	)	1.355
Total from investment operations		1.467			(0.334	)	0.817		0.496		(2.458	)	1.381

Less dividends and distributions from:
Net investment income		(0.076	)		(0.086	)	(0.127	)	—		(0.185	)	(0.085	)
Net realized gain on investments		(0.251	)		—		—		(0.246	)	(0.327	)	(0.576	)
Total dividends and distributions		(0.327	)		(0.086	)	(0.127	)	(0.246	)	(0.512	)	(0.661	)

Net asset value, end of period		$9.900			$8.760		$9.180		$8.490		$8.240		$11.210

Total return⁴		17.10%			(3.73%	)	9.70%		7.08%		(23.11%	)	13.65%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$6,797			$6,043		$6,789		$5,078		$4,728		$6,027
Ratio of expenses to average net assets		1.90%			1.90%		1.87%		1.86%		1.56%		1.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		2.18%			2.24%		2.36%		2.49%		1.82%		1.75%
Ratio of net investment income to average net assets		0.42%			0.83%		1.02%		1.90%		0.29%		0.23%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.14%			0.49%		0.53%		1.27%		0.03%		0.04%
Portfolio turnover		53%			110%		98%		94%		108%		8%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

⁴ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the period shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Growth Allocation Fund Class R

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2				9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07

	(Unaudited)
Net asset value, beginning of period		$8.910			$9.330		$8.610		$8.310		$11.310		$10.580

Income (loss) from investment operations:
Net investment income³		0.044			0.132		0.136		0.173		0.078		0.080
Net realized and unrealized gain (loss)		1.471			(0.424	)	0.747		0.373		(2.512	)	1.362
Total from investment operations		1.515			(0.292	)	0.883		0.546		(2.434	)	1.442

Less dividends and distributions from:
Net investment income		(0.124	)		(0.128	)	(0.163	)	—		(0.239	)	(0.136	)
Net realized gain on investments		(0.251	)		—		—		(0.246	)	(0.327	)	(0.576	)
Total dividends and distributions		(0.375	)		(0.128	)	(0.163	)	(0.246	)	(0.566	)	(0.712	)

Net asset value, end of period		$10.050			$8.910		$9.330		$8.610		$8.310		$11.310

Total return⁴		17.41%			(3.25%	)	10.36%		7.50%		(22.70%	)	14.18%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$12,517			$10,085		$8,136		$1,934		$1,638		$2,241
Ratio of expenses to average net assets		1.40%			1.40%		1.37%		1.36%		1.06%		1.06%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.78%			1.84%		1.96%		2.09%		1.42%		1.35%
Ratio of net investment income to average net assets		0.92%			1.33%		1.52%		2.40%		0.79%		0.73%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.54%			0.89%		0.93%		1.67%		0.43%		0.44%
Portfolio turnover		53%			110%		98%		94%		108%		8%

¹ Ratios have been annualized and total return and portfolio turnover have not been annualized.

³ The average shares outstanding method has been applied for per share information.

See accompanying notes, which are an integral part of the financial statements.

(continues) 97

Financial highlights

Delaware Foundation^® Growth Allocation Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$9.020		$9.440		$8.710		$8.360		$11.380		$10.630

Income (loss) from investment operations:
Net investment income³		0.069		0.184		0.181		0.209		0.128		0.134
Net realized and unrealized gain (loss) on investments		1.485		(0.429	)	0.751		0.387		(2.527	)	1.381
Total from investment operations		1.554		(0.245	)	0.932		0.596		(2.399	)	1.515

Less dividends and distributions from:
Net investment income		(0.173	)	(0.175	)	(0.202	)	—		(0.294	)	(0.189	)
Net realized gain on investments		(0.251	)	—		—		(0.246	)	(0.327	)	(0.576	)
Total dividends and distributions		(0.424	)	(0.175	)	(0.202	)	(0.246	)	(0.621	)	(0.765	)

Net asset value, end of period		$10.150		$9.020		$9.440		$8.710		$8.360		$11.380

Total return⁴		17.69%		(2.76%	)	10.84%		8.07%		(22.34%	)	14.87%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$36,920		$30,452		$29,311		$12,291		$281		$115
Ratio of expenses to average net assets		0.90%		0.90%		0.87%		0.86%		0.56%		0.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.18%		1.24%		1.36%		1.49%		0.82%		0.75%
Ratio of net investment income to average net assets		1.42%		1.83%		2.02%		2.90%		1.29%		1.23%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.14%		1.49%		1.53%		2.27%		1.03%		1.04%
Portfolio turnover		53%		110%		98%		94%		108%		8%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

2 On September 22, 2008, the Fund was restructured to invest directly in a combination of underlying securities representing a variety of asset classes and investment styles. Prior to September 22, 2008, the Fund invested only in other open-end investment companies (mutual funds). The restructuring caused significant changes in the Fund’s income, expense, and portfolio turnover. Select data is not comparable to prior years.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Delaware Foundation^® Moderate Allocation Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$10.080		$10.410		$9.740		$8.950		$11.170		$10.270

Income (loss) from investment operations:
Net investment income³		0.086		0.225		0.249		0.271		0.171		0.181
Net realized and unrealized gain (loss)		1.314		(0.355	)	0.817		0.708		(1.908	)	0.952
Total from investment operations		1.400		(0.130	)	1.066		0.979		(1.737	)	1.133

Less dividends and distributions from:
Net investment income		(0.120	)	(0.200	)	(0.396	)	(0.120	)	(0.281	)	(0.204	)
Net realized gain on investments		—		—		—		(0.069	)	(0.202	)	(0.029	)
Total dividends and distributions		(0.120	)	(0.200	)	(0.396	)	(0.189	)	(0.483	)	(0.233	)

Net asset value, end of period		$11.360		$10.080		$10.410		$9.740		$8.950		$11.170

Total return⁴		13.95%		(1.39%	)	11.06%		11.57%		(16.23%	)	11.18%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$222,279		$197,639		$201,006		$195,233		$35,453		$39,526
Ratio of expenses to average net assets		1.13%		1.13%		1.10%		1.12%		0.80%		0.81%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.24%		1.24%		1.33%		1.41%		1.05%		1.02%
Ratio of net investment income to average net assets		1.59%		2.05%		2.49%		3.20%		1.69%		1.67%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.48%		1.94%		2.26%		2.91%		1.44%		1.46%
Portfolio turnover		82%		164%		134%		193%		123%		8%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects waivers by the manager and distributor, as applicable. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 99

Financial highlights

Delaware Foundation^® Moderate Allocation Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$10.080		$10.400		$9.700		$8.910		$11.120		$10.230

Income (loss) from investment operations:
Net investment income³		0.044		0.141		0.172		0.208		0.094		0.100
Net realized and unrealized gain (loss)		1.308		(0.342	)	0.802		0.701		(1.903	)	0.947
Total from investment operations		1.352		(0.201	)	0.974		0.909		(1.809	)	1.047

Less dividends and distributions from:
Net investment income		(0.072	)	(0.119	)	(0.274	)	(0.050	)	(0.199	)	(0.128	)
Net realized gain on investments		—		—		—		(0.069	)	(0.202	)	(0.029	)
Total dividends and distributions		(0.072	)	(0.119	)	(0.274	)	(0.119	)	(0.401	)	(0.157	)

Net asset value, end of period		$11.360		$10.080		$10.400		$9.700		$8.910		$11.120

Total return⁴		13.45%		(2.03%	)	10.19%		10.64%		(16.94%	)	10.32%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$2,640		$3,002		$4,110		$5,598		$3,317		$5,072
Ratio of expenses to average net assets		1.90%		1.90%		1.87%		1.89%		1.55%		1.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.96%		2.01%		2.06%		2.13%		1.75%		1.72%
Ratio of net investment income to average net assets		0.82%		1.28%		1.72%		2.43%		0.94%		0.92%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.76%		1.17%		1.53%		2.19%		0.74%		0.76%
Portfolio turnover		82%		164%		134%		193%		123%		8%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

100

Delaware Foundation^® Moderate Allocation Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$10.100		$10.430		$9.730		$8.930		$11.140		$10.250

Income (loss) from investment operations:
Net investment income³		0.045		0.141		0.172		0.208		0.095		0.100
Net realized and unrealized gain (loss)		1.317		(0.352	)	0.802		0.711		(1.904	)	0.947
Total from investment operations		1.362		(0.211	)	0.974		0.919		(1.809	)	1.047

Less dividends and distributions from:
Net investment income		(0.072	)	(0.119	)	(0.274	)	(0.050	)	(0.199	)	(0.128	)
Net realized gain on investments		—		—		—		(0.069	)	(0.202	)	(0.029	)
Total dividends and distributions		(0.072	)	(0.119	)	(0.274	)	(0.119	)	(0.401	)	(0.157	)

Net asset value, end of period		$11.390		$10.100		$10.430		$9.730		$8.930		$11.140

Total return⁴		13.41%		(2.03%	)	10.16%		10.73%		(16.91%	)	10.30%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$17,125		$13,813		$12,068		$10,739		$5,998		$6,081
Ratio of expenses to average net assets		1.90%		1.90%		1.87%		1.89%		1.55%		1.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.96%		2.01%		2.06%		2.13%		1.75%		1.72%
Ratio of net investment income to average net assets		0.82%		1.28%		1.72%		2.43%		0.94%		0.92%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.76%		1.17%		1.53%		2.19%		0.74%		0.76%
Portfolio turnover		82%		164%		134%		193%		123%		8%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 101

Financial highlights

Delaware Foundation^® Moderate Allocation Fund Class R

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$10.060		$10.380		$9.710		$8.920		$11.140		$10.240

Income (loss) from investment operations:
Net investment income³		0.072		0.195		0.223		0.250		0.146		0.154
Net realized and unrealized gain (loss)		1.314		(0.348	)	0.799		0.706		(1.911	)	0.953
Total from investment operations		1.386		(0.153	)	1.022		0.956		(1.765	)	1.107

Less dividends and distributions from:
Net investment income		(0.106	)	(0.167	)	(0.352	)	(0.097	)	(0.253	)	(0.178	)
Net realized gain on investments		—		—		—		(0.069	)	(0.202	)	(0.029	)
Total dividends and distributions		(0.106	)	(0.167	)	(0.352	)	(0.166	)	(0.455	)	(0.207	)

Net asset value, end of period		$11.340		$10.060		$10.380		$9.710		$8.920		$11.140

Total return⁴		13.83%		(1.60%	)	10.73%		11.16%		(16.49%	)	10.94%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$21,636		$18,645		$6,994		$1,568		$1,207		$1,157
Ratio of expenses to average net assets		1.40%		1.40%		1.37%		1.39%		1.05%		1.06%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.56%		1.61%		1.66%		1.73%		1.35%		1.32%
Ratio of net investment income to average net assets		1.32%		1.78%		2.22%		2.93%		1.44%		1.42%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.16%		1.57%		1.93%		2.59%		1.14%		1.16%
Portfolio turnover		82%		164%		134%		193%		123%		8%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

102

Delaware Foundation^® Moderate Allocation Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$10.080		$10.400		$9.760		$8.970		$11.200		$10.300

Income (loss) from investment operations:
Net investment income³		0.099		0.250		0.272		0.291		0.197		0.208
Net realized and unrealized gain (loss)		1.314		(0.345	)	0.802		0.712		(1.917	)	0.950
Total from investment operations		1.413		(0.095	)	1.074		1.003		(1.720	)	1.158

Less dividends and distributions from:
Net investment income		(0.133	)	(0.225	)	(0.434	)	(0.144	)	(0.308	)	(0.229	)
Net realized gain on investments		—		—		—		(0.069	)	(0.202	)	(0.029	)
Total dividends and distributions		(0.133	)	(0.225	)	(0.434	)	(0.213	)	(0.510	)	(0.258	)

Net asset value, end of period		$11.360		$10.080		$10.400		$9.760		$8.970		$11.200

Total return⁴		14.08%		(1.07%	)	11.26%		11.76%		(16.06%	)	11.41%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$138,609		$113,458		$66,326		$38,124		$1,357		$98
Ratio of expenses to average net assets		0.90%		0.90%		0.87%		0.89%		0.55%		0.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		0.96%		1.01%		1.06%		1.13%		0.75%		0.72%
Ratio of net investment income to average net assets		1.82%		2.28%		2.72%		3.43%		1.94%		1.92%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.76%		2.17%		2.53%		3.19%		1.74%		1.76%
Portfolio turnover		82%		164%		134%		193%		123%		8%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

See accompanying notes, which are an integral part of the financial statements.

(continues) 103

Financial highlights

Delaware Foundation^® Conservative Allocation Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$9.430		$9.900		$9.360		$8.320		$9.770		$9.270

Income (loss) from investment operations:
Net investment income³		0.096		0.245		0.289		0.304		0.226		0.260
Net realized and unrealized gain (loss)		0.836		(0.183	)	0.687		0.942		(1.253	)	0.503
Total from investment operations		0.932		0.062		0.976		1.246		(1.027	)	0.763

Less dividends and distributions from:
Net investment income		(0.100	)	(0.236	)	(0.436	)	(0.206	)	(0.324	)	(0.263	)
Net realized gain on investments		(0.262	)	(0.296	)	—		—		(0.099	)	—
Total dividends and distributions		(0.362	)	(0.532	)	(0.436	)	(0.206	)	(0.423	)	(0.263	)

Net asset value, end of period		$10.000		$9.430		$9.900		$9.360		$8.320		$9.770

Total return⁴		10.07%		0.48%		10.70%		15.53%		(10.98%	)	8.36%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$73,303		$66,175		$55,513		$43,873		$35,619		$39,863
Ratio of expenses to average net assets		1.13%		1.14%		1.13%		1.13%		0.81%		0.81%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.42%		1.47%		1.55%		1.65%		1.09%		1.06%
Ratio of net investment income to average net assets		1.95%		2.44%		3.02%		3.78%		2.48%		2.73%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.66%		2.11%		2.60%		3.26%		2.20%		2.48%
Portfolio turnover		114%		211%		192%		177%		136%		13%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

104

Delaware Foundation^® Conservative Allocation Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$9.500		$9.990		$9.380		$8.330		$9.770		$9.270

Income (loss) from investment operations:
Net investment income³		0.096		0.247		0.271		0.243		0.157		0.188
Net realized and unrealized gain (loss)		0.846		(0.188	)	0.691		0.948		(1.247	)	0.506
Total from investment operations		0.942		0.059		0.962		1.191		(1.090	)	0.694

Less dividends and distributions from:
Net investment income		(0.100	)	(0.253	)	(0.352	)	(0.141	)	(0.251	)	(0.194	)
Net realized gain on investments		(0.262	)	(0.296	)	—		—		(0.099	)	—
Total dividends and distributions		(0.362	)	(0.549	)	(0.352	)	(0.141	)	(0.350	)	(0.194	)

Net asset value, end of period		$10.080		$9.500		$9.990		$9.380		$8.330		$9.770

Total return⁴		10.10%		0.44%		10.48%		14.66%		(11.56%	)	7.57%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$612		$567		$938		$892		$677		$826
Ratio of expenses to average net assets		1.13%		1.14%		1.33%		1.88%		1.56%		1.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		2.12%		2.17%		2.25%		2.35%		1.79%		1.76%
Ratio of net investment income to average net assets		1.95%		2.44%		2.28%		3.03%		1.73%		1.98%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.96%		1.41%		1.90%		2.56%		1.50%		1.78%
Portfolio turnover		114%		211%		192%		177%		136%		13%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 105

Financial highlights

Delaware Foundation^® Conservative Allocation Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$9.450		$9.920		$9.330		$8.290		$9.730		$9.230

Income (loss) from investment operations:
Net investment income³		0.059		0.170		0.218		0.245		0.159		0.189
Net realized and unrealized gain (loss)		0.836		(0.190	)	0.695		0.936		(1.249	)	0.505
Total from investment operations		0.895		(0.020	)	0.913		1.181		(1.090	)	0.694

Less dividends and distributions from:
Net investment income		(0.063	)	(0.154	)	(0.323	)	(0.141	)	(0.251	)	(0.194	)
Net realized gain on investments		(0.262	)	(0.296	)	—		—		(0.099	)	—
Total dividends and distributions		(0.325	)	(0.450	)	(0.323	)	(0.141	)	(0.350	)	(0.194	)

Net asset value, end of period		$10.020		$9.450		$9.920		$9.330		$8.290		$9.730

Total return⁴		9.64%		(0.34%	)	9.98%		14.61%		(11.61%	)	7.60%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$21,988		$17,206		$10,578		$4,004		$3,373		$2,294
Ratio of expenses to average net assets		1.88%		1.89%		1.88%		1.88%		1.56%		1.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		2.12%		2.17%		2.25%		2.35%		1.79%		1.76%
Ratio of net investment income to average net assets		1.20%		1.69%		2.27%		3.03%		1.73%		1.98%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		0.96%		1.41%		1.90%		2.56%		1.50%		1.78%
Portfolio turnover		114%		211%		192%		177%		136%		13%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

106

Delaware Foundation^® Conservative Allocation Fund Class R

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2			9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$9.430		$9.900		$9.350		$8.310		$9.750		$9.250

Income (loss) from investment operations:
Net investment income³		0.083		0.220		0.265		0.284		0.204		0.237
Net realized and unrealized gain (loss)		0.836		(0.184	)	0.683		0.940		(1.245	)	0.503
Total from investment operations		0.919		0.036		0.948		1.224		(1.041	)	0.740

Less dividends and distributions from:
Net investment income		(0.087	)	(0.210	)	(0.398	)	(0.184	)	(0.300	)	(0.240	)
Net realized gain on investments		(0.262	)	(0.296	)	—		—		(0.099	)	—
Total dividends and distributions		(0.349	)	(0.506	)	(0.398	)	(0.184	)	(0.399	)	(0.240	)

Net asset value, end of period		$10.000		$9.430		$9.900		$9.350		$8.310		$9.750

Total return⁴		9.93%		0.22%		10.39%		15.36%		(11.23%	)	8.12%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$3,348		$3,220		$1,590		$840		$866		$792
Ratio of expenses to average net assets		1.38%		1.39%		1.38%		1.38%		1.06%		1.06%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.72%		1.77%		1.85%		1.95%		1.39%		1.36%
Ratio of net investment income to average net assets		1.70%		2.19%		2.77%		3.53%		2.23%		2.48%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.36%		1.81%		2.30%		2.96%		1.90%		2.18%
Portfolio turnover		114%		211%		192%		177%		136%		13%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

4 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

(continues) 107

Financial highlights

Delaware Foundation^® Conservative Allocation Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	3/31/12^1,2				9/30/11²		9/30/10²		9/30/09²		9/30/08²		9/30/07
	(Unaudited)
Net asset value, beginning of period		$9.440			$9.920		$9.390		$8.350		$9.800		$9.290

Income (loss) from investment operations:
Net investment income³		0.108			0.271		0.314		0.324		0.249		0.284
Net realized and unrealized gain (loss)		0.846			(0.194	)	0.692		0.943		(1.252	)	0.512
Total from investment operations		0.954			0.077		1.006		1.267		(1.003	)	0.796

Less dividends and distributions from:
Net investment income		(0.112	)		(0.261	)	(0.476	)	(0.227	)	(0.348	)	(0.286	)
Net realized gain on investments		(0.262	)		(0.296	)	—		—		(0.099	)	—
Total dividends and distributions		(0.374	)		(0.557	)	(0.476	)	(0.227	)	(0.447	)	(0.286	)

Net asset value, end of period		$10.020			$9.440		$9.920		$9.390		$8.350		$9.800

Total return⁴		10.30%			0.63%		11.02%		15.93%		(10.82%	)	8.72%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$42,691			$33,583		$30,399		$8,740		$185		$87
Ratio of expenses to average net assets		0.88%			0.89%		0.88%		0.88%		0.56%		0.56%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		1.12%			1.17%		1.25%		1.35%		0.79%		0.76%
Ratio of net investment income to average net assets		2.20%			2.69%		3.27%		4.03%		2.73%		2.98%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		1.96%			2.41%		2.90%		3.56%		2.50%		2.78%
Portfolio turnover		114%			211%		192%		177%		136%		13%

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.

3 The average shares outstanding method has been applied for per share information.

See accompanying notes, which are an integral part of the financial statements.

108

Notes to financial statements

Delaware Foundation Funds^®March 31, 2012 (Unaudited)

Delaware Group^® Foundation Funds (Trust) is organized as a Delaware statutory trust and offers four funds: Delaware Foundation^® Equity Fund, Delaware Foundation Growth Allocation Fund, Delaware Foundation Moderate Allocation Fund and Delaware Foundation Conservative Allocation Fund (each, a Fund, or collectively as the Funds). The Trust is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended. The Delaware Foundation Growth Allocation Fund, Delaware Foundation Moderate Allocation Fund and Delaware Foundation Conservative Allocation Fund offer Class A, Class B, Class C, Class R and Institutional Class shares. Delaware Foundation Equity Fund offers Class A, Class C, Class R and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months. Class R and Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.

The investment objective of Delaware Foundation Equity Fund is to seek long-term capital growth.

The investment objective of Delaware Foundation Growth Allocation Fund is to seek long-term capital growth.

The investment objective of Delaware Foundation Moderate Allocation Fund is to seek capital appreciation with current income as a secondary objective.

The investment objective of Delaware Foundation Conservative Allocation Fund is to seek a combination of current income and preservation of capital with capital appreciation.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Funds.

Security Valuation — Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are generally valued at the last quoted sales price on the valuation date. Short-term debt securities are valued at market value. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities, credit default swap (CDS) contracts and interest rate swap contracts are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Open-end investment companies are valued at their published net asset value. Investment company securities are valued at net asset value per share. Foreign currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Funds’ Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or suspension of trading in a security. The Funds may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before each Fund values its securities generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the Funds may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (September 30, 2008 - September 30, 2011, as applicable), and has concluded that no provision for federal income tax is required in the Funds’ financial statements.

Class Accounting — Investment income, common expenses and realized and unrealized gain (loss) on investments are allocated to the various classes of the Funds on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

(continues) 109

Notes to financial statements

Delaware Foundation Funds^®

1. Significant Accounting Policies (continued)

Repurchase Agreements — The Funds may purchase certain U.S. government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Fund’s custodian or a third-party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on March 30, 2012.

To Be Announced Trades — The Funds may contract to purchase securities for a fixed price at a transaction date beyond the customary settlement period (e.g., “when issued,” “delayed delivery,” “forward commitment,” or “TBA transactions”) consistent with the Funds’ ability to manage their investment portfolio and meet redemption requests. These transactions involve a commitment by the Funds to purchase securities for a predetermined price or yield with payment and delivery taking place more than three days in the future, or after a period longer than the customary settlement period for that type of security. No interest will be earned by the Funds on such purchases until the securities are delivered; however the market value may change prior to delivery.

Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with each Fund’s prospectus. The value of all assets and liabilities denominated in foreign currencies is translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Funds generally isolate that portion of realized gains and losses on investments in debt securities, which is due to changes in the foreign exchange rates from that which is due to changes in market prices of debt securities. For foreign equity securities, these changes are included in net realized gain and unrealized gain or loss on investments. The Funds report certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.

Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other — Expenses directly attributable to the Funds are charged directly to the Funds. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on non-convertible bonds are amortized to interest income over the estimated lives of the respective securities using the effective interest method. Realized gains (losses) on paydowns of mortgage- and asset-backed securities are classified as interest income. Distributions received from investments in Real Estate Investment Trusts are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Funds are aware of such dividends, net of all non-rebatable tax withholdings. Withholding taxes on foreign dividends and interest have been recorded in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Each Fund declares and pays dividends from net investment income quarterly and distributions from net realized gain on investments, if any, annually. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended March 31, 2012.

The Funds receive earnings credits from their transfer agent when positive cash balances are maintained, which are be used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.” For the six months ended March 31, 2012, the Funds earned the following amounts under this agreement:

	Delaware	Delaware	Delaware
Delaware	Foundation	Foundation	Foundation
Foundation^®	Growth	Moderate	Conservative
Equity Fund	Allocation Fund	Allocation Fund	Allocation Fund
$1	$30	$112	$28

110

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

In accordance with the terms of its investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual management fee which is calculated at the rate 0.65% on the first $500 million of average daily net assets of each Fund, 0.60% on the next $500 million, 0.55% on the next $1.5 billion, and 0.50% on average daily net assets in excess of $2.5 billion.

DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sales and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), do not exceed each Fund’s average daily net assets through January 28, 2013 as shown below. For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by each Fund’s Board and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Funds.

	Delaware	Delaware	Delaware
Delaware	Foundation	Foundation	Foundation
Foundation^®	Growth	Moderate	Conservative
Equity Fund	Allocation Fund	Allocation Fund	Allocation Fund
0.95%	0.90%	0.90%	0.88%

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments^® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the six months ended March 31, 2012, the Funds were charged for these services as follows:

	Delaware	Delaware	Delaware
Delaware	Foundation	Foundation	Foundation
Foundation	Growth	Moderate	Conservative
Equity Fund	Allocation Fund	Allocation Fund	Allocation Fund
$40	$2,347	$9,308	$3,222

DSC also provides dividend disbursing and transfer agency services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.30% of the average daily net assets of the Class A shares, 1.00% of the average daily net assets of the Class B and C shares and 0.60% of the average daily net assets of the Class R shares. Institutional Class shares pay no distribution and service expenses. DDLP has contracted to limit the Class A and Class R shares’ 12b-1 fees through January 28, 2013 to no more than 0.25% and 0.50%, respectively, of average daily net assets. For the Delaware Foundation Conservative Allocation Fund and for the Delaware Foundation Growth Allocation Fund, DDLP has voluntarily agreed to waive Class B shares’ 12B-1 fees to 0.25% of average daily net assets until such time as the waiver is discontinued. This waiver may be discontinued at any time because it is voluntary.

In connection with the Delaware Foundation Moderate Allocation Fund merger with Delaware Balanced Fund, the Board has adopted a formula for calculating 12b-1 plan fees for the Fund’s Class A shares. The total 12b-1 fees to be paid by Class A shareholders of the Fund will be the sum of 0.10% of the average daily net assets representing shares that were acquired prior to June 1, 1992 and 0.30% of the average daily net assets representing shares that were acquired on or after June 1, 1992. All Class A shareholders will bear 12b-1 fees at the same rate, the blended rate based upon the allocation of the 0.10% and 0.30% (currently waived to 0.25% through January 28, 2013) rates described above.

(continues) 111

Notes to financial statements

Delaware Foundation Funds^®

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

At March 31, 2012, the Funds had receivables due from or liabilities payable to affiliates as follows:

					Delaware				Delaware				Delaware
	Delaware				Foundation				Foundation				Foundation
	Foundation				Growth				Moderate				Conservative
	Equity Fund				Allocation Fund				Allocation Fund				Allocation Fund
Investment management fee payable to DMC		$	—			$	(35,368	)		$	(196,750	)		$	(56,164	)
Dividend disbursing, transfer agent and fund accounting
oversight fees and other expenses payable to DSC			(74	)			(2,409	)			(9,471	)			(3,337	)
Distribution fees payable to DDLP			(105	)			(20,684	)			(69,973	)			(35,209	)
Other expenses payable to DMC and affiliates*			(23	)			(8,849	)			(21,899	)			(8,044	)
Receivable from DMC under expense limitation agreement			13,950				—				—				—

*DMC, as part of its administrative services, pays operating expenses on behalf of each Fund and is reimbursed on a periodic basis. Expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, registration fees and trustees’ fees.

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to the Funds by DMC and/or its affiliates’ employees. For the six months ended March 31, 2012, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

	Delaware	Delaware	Delaware
Delaware	Foundation	Foundation	Foundation
Foundation^®	Growth	Moderate	Conservative
Equity Fund	Allocation Fund	Allocation Fund	Allocation Fund
$24	$1,415	$5,620	$1,949

For the six months ended March 31, 2012, DDLP earned commissions on sales of Class A shares for each Fund as follows:

	Delaware	Delaware	Delaware
Delaware	Foundation	Foundation	Foundation
Foundation	Growth	Moderate	Conservative
Equity Fund	Allocation Fund	Allocation Fund	Allocation Fund
$86	$3,215	$9,648	$20,086

For the six months ended March 31, 2012, DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B, and Class C shares, respectively, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:

	Delaware		Delaware		Delaware
	Foundation		Foundation		Foundation
	Growth		Moderate		Conservative
	Allocation Fund		Allocation Fund		Allocation Fund
Class A	$	49		$ 3	$	—
Class B		832		589		220
Class C		126		826		398

Trustees’ fees include expenses accrued by the Funds for each Trustee’s retainer and meeting fees. Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.

3. Investments

For the six months ended March 31, 2012, the Funds made purchases and sales of investment securities other than short-term investments as follows:

				Delaware			Delaware			Delaware
	Delaware			Foundation			Foundation			Foundation
	Foundation			Growth			Moderate			Conservative
	Equity Fund			Allocation Fund			Allocation Fund			Allocation Fund
Purchases other than U.S. government securities		$	346,862		$	38,089,911		$	251,265,030		$	101,311,918
Purchases of U.S. government securities			—			10,969,948			54,220,727			51,644,035
Sales other than U.S. government securities			389,689			38,566,667			201,874,030			88,655,840
Sales of U.S. government securities			—			11,247,705			93,334,872			52,229,950

112

At March 31, 2012, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At March 31, 2012, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

					Delaware				Delaware				Delaware
	Delaware				Foundation				Foundation				Foundation
	Foundation				Growth				Moderate				Conservative
	Equity Fund				Allocation Fund				Allocation Fund				Allocation Fund
Cost of investments		$	1,546,066			$	91,654,829			$	372,365,316			$	141,833,350
Aggregate unrealized appreciation		$	330,451			$	16,894,278			$	56,803,965			$	13,278,587
Aggregate unrealized depreciation			(72,458	)			(3,294,392	)			(10,533,066	)			(2,760,299	)
Net unrealized appreciation		$	257,993			$	13,599,886			$	46,270,899			$	10,518,288

U.S. GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 – inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)

Level 2 – other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

Level 3 – inputs are significant unobservable inputs (including the Fund’s own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs, including related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following table summarizes the valuation of Delaware Foundation^® Equity Fund’s investments by fair value hierarchy levels as of March 31, 2012:

	Level 1		Level 2		Total
Common Stock	$	1,655,249	$	7,335	$	1,662,584
Investment Companies		42,036		—		42,036
Short-Term Investments		—		95,569		95,569
Securities Lending Collateral		—		2,639		2,639
Other		1,231		—		1,231
Total	$	1,698,516	$	105,543	$	1,804,059
Foreign Currency Exchange Contracts	$	—	$	2	$	2

(continues) 113

Notes to financial statements

Delaware Foundation Funds^®

3. Investments (continued)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Delaware Foundation Equity Fund
	Common
	Stock
Balance as of 9/30/11		$	724
Net realized loss			(1	)
Sales			(24	)
Transfers out of Level 3			(1,400	)
Net change in unrealized appreciation/depreciation			701
Balance as of 3/31/12		$	—

Net change in unrealized appreciation/depreciation
from investments still held as of 3/31/12		$	—

The following table summarizes the valuation of Delaware Foundation^® Growth Allocation Fund’s investments by fair value hierarchy levels as of March 31, 2012:

	Level 1			Level 2			Level 3		Total
Agency, Asset- & Mortgage-Backed Securities	$	—		$	3,410,892		$	141,659	$	3,552,551
Common Stock		76,072,382			317,012			—		76,389,394
Corporate Debt		21,158			12,739,405			—		12,760,563
Foreign Debt		—			2,696,938			—		2,696,938
Investment Companies		50,787			—			—		50,787
U.S. Treasury Obligations		—			2,643,559			—		2,643,559
Short-Term Investments		—			7,048,083			—		7,048,083
Preferred Stock		118,933			—			—		118,933
Option Written		(6,093	)		—			—		(6,093	)
Total	$	76,257,167		$	28,855,889		$	141,659	$	105,254,715
Foreign Currency Exchange Contracts	$	—		$	(12,884	)	$	—	$	(12,844	)
Future Contracts	$	1,548		$	—		$	—	$	1,548
Swap Contracts	$	—		$	(477	)	$	—	$	(477	)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Delaware Foundation Growth Allocation Fund
	Agency,
	Asset- &
	Mortgage-Backed			Common
	Securities			Stock				Total
Balance as of 9/30/11		$	—		$	23,783		$	23,783
Net realized loss			—			(54	)		(54	)
Purchases			141,659			—			141,659
Sales			—			(1,027	)		(1,027	)
Transfers out of Level 3			—			(45,500	)		(45,500	)
Net change in unrealized appreciation/depreciation			—			22,798			22,798
Balance as of 3/31/12		$	141,659		$	—		$	141,659

Net change in unrealized appreciation/depreciation
from investments still held as of 3/31/12		$	—		$	—		$	—

114

The following table summarizes the valuation of Delaware Foundation Moderate Allocation Fund’s investments by fair value hierarchy levels as of March 31, 2012:

	Level 1			Level 2			Level 3		Total
Agency, Asset- & Mortgage-Backed Securities	$	—		$	23,536,663		$	1,377,285	$	24,913,948
Common Stock		225,793,524			813,768			—		226,607,292
Corporate Debt		141,496			93,709,732			—		93,851,228
Foreign Debt		—			19,378,507			—		19,378,507
Investment Companies		129,201			—			—		129,201
Municipal Bond		—			242,966			—		242,966
U.S. Treasury Obligations		—			17,977,889			—		17,977,889
Short-Term Investments		—			34,649,487			—		34,649,487
Other		767,267			118,430			—		885,697
Option Written		(52,813	)		—			—		(52,813	)
Total	$	226,778,675		$	190,427,442		$	1,377,285	$	418,583,402
Foreign Currency Exchange Contracts	$	—		$	(99,543	)	$	—	$	(99,547	)
Futures Contracts	$	68,355		$	—		$	—	$	68,355
Swap Contracts	$	—		$	(12,262	)	$	—	$	(12,262	)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Delaware Foundation^® Moderate Allocation Fund
	Agency,
	Asset- &
	Mortgage-Backed			Corporate
	Securities			Debt			Total
Balance as of 9/30/11		$	97,796	$	60,409		$	158,205
Net realized loss			—		(157	)		(157	)
Purchases			1,274,934		—			1,274,934
Sales			—		(2,991	)		(2,991	)
Transfers out of Level 3			—		(114,800	)		(114,800	)
Net change in unrealized appreciation/depreciation			4,555		57,539			62,094
Balance as of 3/31/12		$	1,377,285	$	—		$	1,377,285

Net change in unrealized appreciation/depreciation
from investments still held as of 3/31/12		$	4,555	$	—		$	4,555

The following table summarizes the valuation of Delaware Foundation Conservative Allocation Fund’s investments by fair value hierarchy levels as of March 31, 2012:

	Level 1			Level 2			Level 3		Total
Agency, Asset- & Mortgage-Backed Securities	$	—		$	13,896,371		$	1,001,343	$	14,897,714
Common Stock		53,408,178			224,107			—		53,632,285
Corporate Debt		64,592			46,246,875			—		46,311,467
Foreign Debt		—			8,566,738			—		8,566,738
Investment Companies		50,344			—			—		50,344
U.S. Treasury Obligations		—			11,759,311			—		11,759,311
Short-Term Investments		—			16,688,985			—		16,688,985
Other		419,048			25,746			—		444,794
Options Written		(24,375	)		—			—		(24,375	)
Total	$	53,917,787		$	97,408,133		$	1,001,343	$	152,327,263
Foreign Currency Exchange Contracts	$	—		$	(48,595	)	$	—	$	(48,595	)
Futures Contract	$	16,744		$	—		$	—	$	16,744
Swap Contracts	$	—		$	(6,977	)	$	—	$	(6,977	)

(continues) 115

Notes to financial statements

Delaware Foundation Funds^®

3. Investments (continued)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Delaware Foundation Conservative Allocation Fund
	Agency,
	Asset- &
	Mortgage-Backed			Common
	Securities			Stock				Total
Balance as of 9/30/11		$	97,796		$	13,676		$	111,472
Net realized loss			—			(38	)		(38	)
Purchases			898,993			—			898,993
Sales			—			(722	)		(722	)
Transfers out of Level 3			—			(25,900	)		(25,900	)
Net change in unrealized appreciation/depreciation			4,554			12,984			17,538
Balance as of 3/31/12		$	1,001,343		$	—		$	1,001,343

Net change in unrealized appreciation/depreciation
from investments still held as of 3/31/12		$	4,554		$	—		$	4,554

During the six months ended March 31, 2012, Delaware Foundation^® Equity Fund, Delaware Foundation Growth Allocation Fund, Delaware Foundation Moderate Allocation Fund and Delaware Foundation Conservative Allocation Fund had transfers out of Level 3 investments into Level 2 investments in the amount of $14,000, $45,500 $114,800 and $25,900 respectively, due to the Funds’ using a price with observable inputs that have been using a price with unobservable inputs. During the six months ended March 31, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Delaware Foundation Equity Fund, Delaware Foundation Growth Allocation Fund, Delaware Foundation Moderate Allocation Fund and Delaware Foundation Conservative Allocation Fund. This does not include transfers between Level 1 investments and Level 2 investments due to the Funds utilizing international fair value pricing during the six months. International fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on which the investment is principally traded in accordance with the fair valuation procedures described in Note 1, causing a change in classification between levels. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

In May 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-04 modifying Topic 820, Fair Value Measurements and Disclosures. ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, and the reasons for the transfers, ii) for Level 3 fair value measurements, iii) quantitative information about significant unobservable inputs used, iv) a description of the valuation processes used by the reporting entity and v) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. Management is currently evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.

4. Dividend and Distribution Information

Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Additionally, distributions from net gains on foreign currency transactions and net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the six months ended March 31, 2012 and the year ended September 30, 2011 was as follows:

			Delaware		Delaware		Delaware
	Delaware		Foundation		Foundation		Foundation
	Foundation		Growth		Moderate		Conservative
	Equity Fund		Allocation Fund		Allocation Fund		Allocation Fund
Six Months Ended 3/31/12*
Ordinary income	$	24,284	$	2,747,920	$	4,217,091	$	3,190,088
Long-term capital gain		42,154		1,067,406		—		1,433,325
Total	$	66,438	$	3,815,326	$	4,217,091	$	4,623,413

Year Ended 9/30/11
Ordinary income	$	50,758	$	1,335,964	$	5,982,204	$	4,437,691
Long-term capital gain		3,411		—		—		1,246,686
Total	$	54,169	$	1,335,964	$	5,982,204	$	5,684,377

*Tax information for the six months ended March 31, 2012 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

116

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of March 31, 2012, the estimated components of net assets on a tax basis were as follows:

				Delaware			Delaware			Delaware
	Delaware			Foundation			Foundation			Foundation
	Foundation			Growth			Moderate			Conservative
	Equity Fund			Allocation Fund			Allocation Fund			Allocation Fund
Shares of beneficial interest	$	1,544,429		$	88,985,652		$	362,898,999		$	131,359,306
Undistributed ordinary income		1,676			315,904			330,962			499,994
Realized gains (losses) 10/1/11 – 3/31/12		(9,745	)		35,009			342,503			263,090
Other temporary differences		—			(24,886	)		(178,648	)		(93,046	)
Capital loss carryforwards as of 9/30/11		—			—			(6,190,481	)		—
Unrealized appreciation of investments and foreign currencies		257,954			13,448,662			45,085,298			9,912,532
Net assets	$	1,794,314		$	102,760,341		$	402,288,633		$	141,941,876

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, mark-to-market of futures contracts, mark-to-market of foreign currency exchange contracts, tax deferral of losses on straddles, tax treatment of passive foreign investment companies, CDS contracts and tax treatment of market discount and premium on debt instruments.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of gain (loss) on foreign currency transactions, CDS contracts, dividends and distributions, market discount and premium on certain debt instruments and paydowns of mortgage- and asset-backed securities. Results of operations and net assets were not affected by these reclassifications. For the six months ended March 31, 2012, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

				Delaware			Delaware			Delaware
	Delaware			Foundation			Foundation			Foundation
	Foundation^®			Growth			Moderate			Conservative
	Equity Fund			Allocation Fund			Allocation Fund			Allocation Fund
Undistributed net investment income	$	(800	)	$	(34,855	)	$	(352,476	)	$	(101,442	)
Accumulated net realized gain (loss)		800			34,855			352,476			101,442

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining for Delaware Moderate Allocation Fund at September 30, 2011 will expire as follows:

2016	$	5,141,336
2017		368,871
2018		680,274
Total	$	6,190,481

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the Act) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

For the six months ended March 31, 2012, the Delaware Foundation Moderate Allocation Fund had capital gains of $342,503, which may reduce capital loss carryforwards.

(continues) 117

Notes to financial statements

Delaware Foundation Funds^®

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Foundation						Delaware Foundation				Delaware Foundation				Delaware Foundation
	Equity Fund						Growth Allocation Fund				Moderate Allocation Fund				Conservative Allocation Fund
	Six Months			Year			Six Months		Year		Six Months		Year		Six Months		Year
	Ended			Ended			Ended		Ended		Ended		Ended		Ended		Ended
	3/31/12			9/30/11			3/31/12		9/30/11		3/31/12		9/30/11		3/31/12		9/30/11
Shares sold:
Class A		7,166			33,215		360,641		1,090,947		1,056,146		2,552,356		999,381		2,362,924
Class B		—			—		2,749		8,553		5,924		27,857		11,103		24,114
Class C		403			2,617		57,407		192,764		329,363		606,595		524,403		1,132,079
Class R		—			—		240,266		436,565		183,907		1,384,276		71,520		203,699
Institutional Class		2,974			24,903		510,731		799,577		1,475,075		5,937,772		1,518,246		1,554,162

Shares issued upon reinvestment
of dividends and distributions:
Class A		1,254			570		179,365		58,035		180,886		289,797		261,438		315,732
Class B		—			—		10,912		2,951		1,654		3,323		2,123		3,084
Class C		81			19		23,344		6,126		9,232		13,714		58,023		54,456
Class R		24			21		41,792		11,575		18,284		20,603		10,538		10,475
Institutional Class		5,683			4,574		153,609		54,411		117,903		151,307		133,783		161,939
		17,585			65,919		1,580,816		2,661,504		3,378,374		10,987,600		3,590,558		5,822,664

Shares repurchased:
Class A		(316	)		(13,269	)	(466,696	)	(810,749	)	(1,277,078	)	(2,553,939	)	(949,035	)	(1,266,156	)
Class B		—			—		(60,328	)	(91,393	)	(73,185	)	(128,250	)	(12,213	)	(61,413	)
Class C		—			(971	)	(84,385	)	(248,184	)	(202,674	)	(410,225	)	(209,582	)	(432,504	)
Class R		—			—		(168,948	)	(187,874	)	(147,123	)	(225,445	)	(88,869	)	(33,120	)
Institutional Class		(11,131	)		(15,075	)	(404,454	)	(581,242	)	(647,732	)	(1,207,769	)	(945,881	)	(1,224,905	)
		(11,447	)		(29,315	)	(1,184,811	)	(1,919,442	)	(2,347,792	)	(4,525,628	)	(2,205,580	)	(3,018,098	)
Net increase		6,138			36,604		396,005		742,062		1,030,582		6,461,972		1,384,978		2,804,566

For the six months ended March 31, 2012 and the year ended September 30, 2011, the following Class B shares were converted to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the tables above and the statements of changes in net assets.

	Six Months Ended				Year Ended
	3/31/12				9/30/11
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Foundation^®Growth Allocation Fund	27,171	26,639	$	264,346	54,147	53,043	$	523,268
Delaware Foundation Moderate Allocation Fund	26,842	26,781		294,314	69,462	69,322		755,888
Delaware Foundation Conservative Allocation Fund	6,033	6,076		60,064	15,488	15,374		153,981

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments^® Family of Funds (Participants), was a participant in a $50,000,000 revolving line of credit to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the agreement, the Participants were charged an annual commitment fee, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. On August 1, 2011, the Funds, along with the other Participants, entered into an amendment for a $100,000,000 revolving line of credit. The line of credit under the agreement expired on November 15, 2011.

On November 15, 2011, the Funds, along with the other Participants, entered into an amendment to the agreement for a $125,000,000 revolving line of credit. The agreement is to be used as described above and operates in substantially the same manner as the original agreement. The agreement expires on November 13, 2012. The Funds had no amounts outstanding as of March 31, 2012 or at any time during the period then ended.

8. Derivatives

U.S. GAAP requires disclosures that enable investors to understand: 1) how and why an entity uses derivatives, 2) how they are accounted for, and 3) how they affect an entity’s results of operations and financial position.

118

Foreign Currency Exchange Contracts — Each Fund may enter into foreign currency exchange contracts as a way of managing foreign exchange rate risk. Each Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. Each Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. The change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts limit the risk of loss due to an unfavorable change in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency change favorably. In addition, the Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. The Funds’ maximum risk of loss from counterparty credit risk is the value of its currency exchanged with the counterparty. The risk is generally mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Funds’ exposure to the counterparty.

Futures Contracts — A futures contract is an agreement in which the writer (or seller) of the contract agrees to deliver to the buyer an amount of cash or securities equal to a specific dollar amount times the difference between the value of a specific security or index at the close of the last trading day of the contract and the price at which the agreement is made. Each Fund may use futures in the normal course of pursuing its investment objective. Each Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, each Fund deposits cash or pledges U.S. government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by each Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, each Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default.

Options Contracts — During the six months ended March 31, 2012, Delaware Foundation^® Growth Allocation Fund, Delaware Foundation Moderate Allocation Fund and Delaware Foundation Conservative Allocation Fund entered into options contracts in the normal course of pursuing its investment objective. Each Fund may buy or write options contracts for any number of reasons, including without limitation: to manage each Fund’s exposure to changes in securities prices and foreign currencies; as an efficient means of adjusting the Funds’ overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. Each Fund may buy or write call or put options on securities, futures, swaps “swaptions”, financial indices, and foreign currencies. When each Fund buys an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the options purchased. When each Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the options written. Premiums received from writing options that expire unexercised are treated by each Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether each Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by each Fund. Each Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. When writing options, each Fund is subject to minimal counterparty risk because the counterparty is only obligated to pay premiums and does not bear the market risk of an unfavorable market change.

Transactions in options during the six months ended March 31, 2012 for each Fund were as follows:

	Delaware							Delaware						Delaware
	Foundation							Foundation						Foundation
	Growth							Moderate						Conservative
	Allocation Fund							Allocation Fund						Allocation Fund
	Number of							Number of						Number of
	Contracts			Premiums				Contracts			Premiums			Contracts			Premiums
Options outstanding at September 30, 2011		—			$	—			—		$	—			—		$	—
Options written		9				10,723			141			148,451			65			68,586
Options expired		(2	)			(1,071	)		(43	)		(27,807	)		(20	)		(12,588	)
Options terminated in closing purchase transactions		(4	)			(5,364	)		(72	)		(84,921	)		(33	)		(39,657	)
Options outstanding at March 31, 2012		3			$	4,288			26		$	35,723			12		$	16,341

(continues) 119

Notes to financial statements

Delaware Foundation Funds^®

8. Derivatives (continued)

Swap Contracts — The Funds may enter into CDS contracts in the normal course of pursuing its investment objective. The Funds may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets.

Credit Default Swaps. A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Funds in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the reference security (or basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.

During the six months ended March 31, 2012, the Funds entered into CDS contracts as a purchaser and seller of protection. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement. At March 31, 2012, the net unrealized depreciation of CDS contracts for each Fund was as follows:

Delaware	Delaware	Delaware
Foundation	Foundation	Foundation
Growth	Moderate	Conservative
Allocation Fund	Allocation Fund	Allocation Fund
$(477)	$(12,262)	$(6,977)

The Funds had posted cash collateral for open swap contracts which is presented as restricted cash on the statements of assets and liabilities as follows:

	Delaware		Delaware
	Foundation		Foundation
	Moderate		Conservative
	Allocation Fund		Allocation Fund
	$230,000		$110,000

If a credit event had occurred for all swap transactions where collateral posting was required as of March 31, 2012, the Funds would have received the following amounts less the value of the contracts’ related reference obligations.

Delaware

Foundation^®

Foundation

Growth

Moderate

Conservative

Allocation Fund

EUR

805,000

EUR

5,860,000

EUR

2,905,000

USD

955,00

USD

6,767,000

USD

3,445,000

The Funds received securities collateral for certain open derivatives as follows:

	Delaware		Delaware
	Foundation		Foundation
	Moderate		Conservative
	Allocation Fund		Allocation Fund
	$385,000		$168,000

As disclosed in the footnotes to the statements of net assets, at March 31, 2012, the notional value of the protection sold for the Funds was as follows:

Delaware	Delaware	Delaware
Foundation	Foundation	Foundation
Growth	Moderate	Conservative
Allocation Fund	Allocation Fund	Allocation Fund
$30,000	$380,000	$185,000

These amounts reflect the maximum potential amount the Funds could be required to make as a seller of credit protection if a credit event had occurred. The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative if the swap

120

agreement had been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. At March 31, 2012, the net unrealized appreciation of the protection sold for each Fund was as follows:

Delaware	Delaware	Delaware
Foundation	Foundation	Foundation
Growth	Moderate	Conservative
Allocation Fund	Allocation Fund	Allocation Fund
$976	$12,533	$6,102

CDS contracts may involve greater risks than if the Funds had invested in the reference obligation directly. CDS contracts are subject to general market risk, liquidity risk, counterparty risk and credit risk. The Funds’ maximum risk of loss from counterparty credit risk, either as the seller of protection or the buyer of protection, is the fair value of the contract. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.

Swaps Generally. Because there is no organized market for swap contracts, the value of open swaps may differ from that which would be realized in the event each Fund terminated its position in the agreement. Risks of entering into these contracts include the potential inability of the counterparty to meet the terms of the contracts. This type of risk is generally limited to the amount of favorable movement in the value of the underlying security, instrument or basket of instruments, if any, at the day of default. Risks also arise from potential losses from adverse market movements and such losses could exceed the unrealized amounts shown on the statements of net assets.

See the statement of operations on pages 84-85 for the realized and unrealized gain or loss on derivatives for the Delaware Foundation Equity Fund.

Fair values of derivative instruments as of March 31, 2012 for each Fund were as follows:

	Delaware Foundation^® Growth Allocation Fund
	Asset Derivatives					Liability Derivatives
	Statement of					Statement of
	Assets & Liabilities Location	Fair Value				Assets & Liabilities Location	Fair Value
Forward currency exchange contracts (Foreign currency exchange contracts)	Foreign currency exchange contracts, at value		$	892		Foreign currency exchange contracts, at value		$	(13,776	)

Interest rate contracts (Futures contracts)	Variation margin receivable on futures contracts			1,548	*	Variation margin payable on futures contracts			—

Equity contracts (Options written)	Options written, at value			—		Options written, at value			(6,093	)

Credit contracts (CDS contracts)	Unrealized gain on CDS contracts			18,857		Unrealized loss on CDS contracts			(18,380	)

Total			$	21,297				$	(38,249	)

	Delaware Foundation Moderate Allocation Fund
	Asset Derivatives					Liability Derivatives
	Statement of					Statement of
	Assets & Liabilities Location	Fair Value				Assets & Liabilities Location	Fair Value
Forward currency exchange contracts (Foreign currency exchange contracts)	Foreign currency exchange contracts, at value		$	4,143		Foreign currency exchange contracts, at value	$	(103,686	)

Interest rate contracts (Futures contracts)	Variation margin receivable on futures contracts			68,355	*	Variation margin payable on futures contracts		—

Equity contracts (Options written)	Options written, at value			—		Options written, at value		(17,090	)

Credit contracts (CDS contracts)	Unrealized gain on CDS contracts			127,040		Unrealized loss on CDS contracts		(139,302	)

Total			$	199,538			$	(260,078	)

(continues) 121

Notes to financial statements

Delaware Foundation Funds^®

8. Derivatives (continued)

	Delaware Foundation Conservative Allocation Fund
	Asset Derivatives					Liability Derivatives
	Statement of					Statement of
	Assets & Liabilities Location	Fair Value				Assets & Liabilities Location	Fair Value
Forward currency exchange contracts (Foreign currency exchange contracts)	Foreign currency exchange contracts, at value		$	2,960		Foreign currency exchange contracts, at value	$	(51,555	)

Interest rate contracts (Futures contracts)	Variation margin receivable on futures contracts			16,744	*	Variation margin payable on futures contracts		—

Equity contracts (Options written)	Options written, at value			—		Options written, at value		(8,034	)

Credit contracts (CDS contracts)	Unrealized gain on CDS contracts			62,456		Unrealized loss on CDS contracts		(69,433	)

Total			$	82,160			$	(129,022	)

*Includes cumulative appreciation of futures contracts from the date the contracts are opened at March 31, 2012. Only current day variation margin is reported on the Fund’s statement of assets and liabilities.

The effect of derivative instruments on the statements of operations for the six months ended March 31, 2012 was as follows:

	Delaware Foundation^®Growth Allocation Fund
						Change in Unrealized
		Realized Gain or Loss on				Appreciation or
	Location of Gain or Loss on	Derivatives Recognized in				Depreciation on Derivatives
	Derivatives Recognized in Income	Income				Recognized in Income
Forward currency exchange contracts (Foreign currency exchange contracts)	Net realized loss on foreign currency exchange contracts and net change in unrealized appreciation (depreciation) on foreign currency exchange contracts		$	(107,383	)		$	(35,979	)
Interest rate contracts (Futures contracts)	Net realized gain on futures contracts and net change in unrealized appreciation (depreciation) on futures contracts			74,620				(73,452	)
Equity contracts (Options written)	Net realized gain on options written and net change in unrealized appreciation (depreciation) on options written			6,006				(1,805	)
Credit contracts (Swap contracts)	Net realized loss on swap contracts and net change in unrealized appreciation (depreciation) on swap contracts			(171,452	)			(46,835	)
Total			$	(198,209	)		$	(158,071	)

	Delaware Foundation Moderate Allocation Fund
						Change in Unrealized
		Realized Gain or Loss on				Appreciation or
	Location of Gain or Loss on	Derivatives Recognized in				Depreciation on Derivatives
	Derivatives Recognized in Income	Income				Recognized in Income
Forward currency exchange contracts (Foreign currency exchange contracts)	Net realized loss on foreign currency exchange contracts and net change in unrealized appreciation (depreciation) on foreign currency exchange contracts		$	(584,935	)		$	(270,429	)
Interest rate contracts (Futures contracts)	Net realized gain on futures contracts and net change in unrealized appreciation (depreciation) on futures contracts			545,237				(549,754	)
Equity contracts (Options written)	Net realized gain on options written and net change in unrealized appreciation (depreciation) on options written			97,412				(17,090	)
Credit contracts (Swap contracts)	Net realized loss on swap contracts and net change in unrealized appreciation (depreciation) on swap contracts			(1,220,858	)			(353,147	)
Total			$	(1,163,144	)		$	(1,190,420	)

122

	Delaware Foundation Conservative Allocation Fund
						Change in Unrealized
		Realized Gain or Loss on				Appreciation or
	Location of Gain or Loss on	Derivatives Recognized in				Depreciation on Derivatives
	Derivatives Recognized in Income	Income				Recognized in Income
Forward currency exchange contracts (Foreign currency exchange contracts)	Net realized loss on foreign currency exchange contracts and net change in unrealized appreciation (depreciation) on foreign currency exchange contracts		$	(223,432	)		$	(134,172	)
Interest rate contracts (Futures contracts)	Net realized gain on futures contracts and net change in unrealized appreciation (depreciation) on futures contracts			263,149				(283,918	)
Equity contracts (Options written)	Net realized gain on options written and net change in unrealized appreciation (depreciation) on options written			45,012				(8,034	)
Credit contracts (Swap contracts)	Net realized loss on swap contracts and net change in unrealized appreciation (depreciation) on swap contracts			(613,713	)			(171,723	)
Total			$	(528,984	)		$	(597,847	)

Derivatives Generally. The table below summarizes the average balance of derivative holdings by the Funds during the six months ended March 31, 2012. The average balance of derivatives held is generally similar to the volume of derivative activity for the six months ended March 31, 2012.

	Delaware Foundation^®Equity Fund
	Asset Derivative Volume			Liability Derivative Volume
Foreign currency exchange contracts (average cost)		USD	1,564		USD	1,384

	Delaware Foundation Growth Allocation Fund
	Asset Derivative Volume			Liability Derivative Volume
Foreign currency exchange contracts (average cost)		USD	725,033		USD	2,122,862
Futures contracts (average notional value)			897,870			664,425
		EUR	243,933		EUR	—
Options contracts (average notional value)		USD	14		USD	1,615
Swap contracts (average notional value)			34,480			1,820,067
		EUR	—		EUR	706,880

	Delaware Foundation Moderate Allocation Fund
	Asset Derivative Volume			Liability Derivative Volume
Foreign currency exchange contracts (average cost)		USD	4,453,950		USD	14,273,838
Futures contracts (average notional value)			9,264,624			7,090,950
		EUR	3,194,599			—
		GBP	11,683			—
Options contracts (average notional value)		USD	99			19,405
Swap contracts (average notional value)			413,920			13,111,321
			—		EUR	5,115,184

	Delaware Foundation Conservative Allocation Fund
	Asset Derivative Volume			Liability Derivative Volume
Foreign currency exchange contracts (average cost)		USD	2,355,688		USD	6,859,103
Futures contracts (average notional value)			2,514,710			2,905,461
		EUR	1,191,512			—
		GBP	4,376			—
Options contracts (average notional value)		USD	50			9,014
Swap contracts (average notional value)			201,640			6,601,432
			—		EUR	2,500,840

(continues) 123

Notes to financial statements

Delaware Foundation Funds^®

9. Securities Lending

The Funds, along with other funds in the Delaware Investments^® Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (i) 102% with respect to U.S. securities and foreign securities that are denominated and payable in U.S. dollars; and (ii) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security may be temporarily more or less than the value of the security on loan.

Cash collateral received is generally invested in the Delaware Investments Collateral Fund No. 1 (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of funds managed by DMC that participate in BNY Mellon’s securities lending program. The Collective Trust may invest in U.S. government securities and high quality corporate debt, asset-backed and other money market securities and in repurchase agreements collateralized by such securities, provided that the Collective Trust will generally have a dollar-weighted average portfolio maturity of 60 days or less. Effective April 20, 2009, BNY Mellon transferred the assets of the Funds’ previous collateral investment pool other than cash and assets with a maturity of one business day or less to the BNY Mellon SL DBT II Liquidating Fund (Liquidating Fund), effectively bifurcating the previous collateral investment pool. The Funds’ exposure to the Liquidating Fund is expected to decrease as the Liquidating Fund’s assets mature or are sold. In October 2008, BNY Mellon transferred certain distressed securities from the previous collateral investment pool into the Mellon GSL Reinvestment Trust II. The Funds can also accept U.S. government securities and letters of credit (non-cash collateral) in connection with securities loans. In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Funds, or at the discretion of the lending agent, replace the loaned securities. The Funds continue to record dividends or interest, as applicable, on the securities loaned and is subject to change in value of the securities loaned that may occur during the term of the loan. The Funds have the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Funds receive loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Funds, the security lending agent and the borrower. The Funds record security lending income net of allocations to the security lending agent and the borrower.

The Collective Trust used for the investment of cash collateral received from borrowers of securities seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The Funds may incur investment losses as a result of investing securities lending collateral in the Collective Trust or another collateral investment pool. This could occur if an investment in a collateral investment pool defaulted or if it were necessary to liquidate assets in the collateral investment pool to meet returns on outstanding security loans at a time when the collateral investment pool’s net asset value per unit was less than $1.00. Under those circumstances, the Funds may not receive an amount from the collateral investment pool that is equal in amount to the collateral the Funds would be required to return to the borrower of the securities and the Funds would be required to make up this shortfall.

During the six months ended March 31, 2012, Delaware Foundation^® Growth Allocation Fund, Delaware Foundation Moderate Allocation Fund and Delaware Foundation Conservative Allocation Fund had no securities out on loan. At March 31, 2012, the values of securities on loan for Delaware Foundation Equity Fund was $2,539, for which cash collateral was received and invested in accordance with the Lending Agreement. At March 31, 2012, the value of invested collateral was $2,639. These investments are presented on the statement of net assets under the caption “Securities Lending Collateral”.

10. Credit and Market Risk

Some countries in which the Funds may invest require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.

The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Funds may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Funds.

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Each Fund may invest a portion of its assets in high yield fixed income securities, which are securities rated BB or lower by Standard & Poor’s and Ba or lower by Moody’s Investors Services, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.

The Funds invest a significant portion of their assets in small companies and may be subject to certain risks associated with ownership of securities of such companies. Investments in small-sized companies may be more volatile than investments in larger companies for a number of reasons, which include limited financial resources or a dependence on narrow product lines.

Each Fund invests in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligation and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities, which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse effect on each Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, each Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.

Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Funds’ Board has delegated to DMC, the day-to-day functions of determining whether individual securities are liquid for purposes of the Funds’ limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. Rule 144A and illiquid securities have been identified on the statements of net assets.

11. Contractual Obligations

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.

12. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to March 31, 2012 that would require recognition or disclosure in the Funds’ financial statements.

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Other Fund information
(Unaudited)

Delaware Foundation Funds^®

Change in Independent Registered Public Accounting Firm. Due to independence matters under the Securities and Exchange Commission’s auditor independence rules relating to the January 4, 2010 acquisition of Delaware Investments (including DMC, DDLP and DSC) by Macquarie Group, Ernst & Young LLP (E&Y) has resigned as the independent registered public accounting firm for Delaware Group^® Foundation Funds (the Trust) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Trust, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Trust for the fiscal year ending September 30, 2010. During the fiscal years ended September 30, 2009 and September 30, 2008, E&Y’s audit reports on the financial statements of the Trust did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trust and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trust nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Trust’s financial statements.

126

About the organization

This semiannual report is for the information of Delaware Foundation Funds^® shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Foundation Funds and the Delaware Investments^® Fund fact sheet for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

Board of trustees	Affiliated officers	Contact information

Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA John A. Fry President Drexel University Philadelphia, PA Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA Ann R. Leven Consultant ARL Associates New York, NY	David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA Daniel V. Geatens Vice President and Treasurer Delaware Investments Family of Funds Philadelphia, PA David P. O’Connor Executive Vice President, General Counsel and Chief Legal Officer Delaware Investments Family of Funds Philadelphia, PA Richard Salus Senior Vice President and Chief Financial Officer Delaware Investments Family of Funds Philadelphia, PA	Investment manager Delaware Management Company, a series of Delaware Management Business Trust Philadelphia, PA National distributor Delaware Distributors, L.P. Philadelphia, PA Shareholder servicing, dividend disbursing, and transfer agent Delaware Service Company, Inc. 2005 Market Street Philadelphia, PA 19103-7094 For shareholders 800 523-1918 For securities dealers and financial institutions representatives only 800 362-7500 Website www.delawareinvestments.com

Frances A. Sevilla-Sacasa Executive Advisor to Dean, University of Miami School of Business Administration Coral Gables, FL Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ	Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries. The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at www.sec.gov. In addition, a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on the Funds’ website at www.delawareinvestments.com. Each Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330. Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at www.delawareinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

127

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.

(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)		(1) Code of Ethics

		Not applicable.

		(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.

		(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.

		Not applicable.

(b)		Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.

Name of Registrant: DELAWARE GROUP^® FOUNDATION FUNDS

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	June 6, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	June 6, 2012

/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	June 6, 2012

Delaware Group Foundation Funds N-CSRSCertified semi-annual shareholder report (management investment company)