Delaware Group Income Funds NCSR Certified 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: 811-02071

Exact name of registrant as specified in charter: Delaware Group® Income 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: July 31

Date of reporting period: April 30

Item 1. Reports to Stockholders

Semiannual report

Delaware Core Bond Fund

April 30, 2010

Fixed income mutual fund

The figures in the semiannual report for Delaware Core Bond Fund represent past results, which are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The Delaware Core Bond Fund prospectus contains this and other important information about the Fund. Prospectuses for all open-end funds in the Delaware Investments® Family of Funds are available from your financial advisor, online at www.delawareinvestments.com, or by phone at 800 523-1918. Please read the prospectus carefully before you invest or send money.

You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit www.delawareinvestments.com/edelivery.

Experience Delaware Investments

Delaware Investments is committed to the pursuit of consistently superior asset management and unparalleled client service. We believe in our investment processes, which seek to deliver consistent results, and in convenient services that help add value for our clients.

If you are interested in learning more about creating an investment plan, contact your financial advisor.

You can learn more about Delaware Investments or obtain a prospectus for Delaware Core Bond Fund at www.delawareinvestments.com.

Manage your investments online

24-hour access to your account information
Obtain share prices
Check your account balance and recent transactions
Request statements or literature
Make purchases and redemptions

On January 4, 2010, Delaware Management Holdings, Inc., and its subsidiaries (collectively known by the marketing name of Delaware Investments) were sold by a subsidiary of Lincoln National Corporation to Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. Please see your Fund’s prospectus and any supplements thereto for more complete information.

Investments in Delaware Core Bond Fund 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 Fund, the repayment of capital from the Fund, or any particular rate of return.

Table of contents
Disclosure of Fund expenses	1
Security type	3
Statement of net assets	4
Statement of operations	16
Statements of changes in net assets	17
Financial highlights	18
Notes to financial statements	23
Other Fund information	33
About the organization	42

Unless otherwise noted, views expressed herein are current as of April 30, 2010, and are 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 Fund’s distributor Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

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

Disclosure of Fund expenses
For the period November 1, 2009 to April 30, 2010

As a shareholder of the 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. This example is 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 example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2009 to April 30, 2010.

Actual expenses

The first section of the table 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 table shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s 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 the 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 table 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 the 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 Fund’s expenses shown in the table reflect fee waivers in effect. The expenses shown in the table assume reinvestment of all dividends and distributions.

Disclosure of Fund expenses

Delaware Core Bond Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	11/1/09		4/30/10		Expense Ratio		11/1/09 to 4/30/10*
Actual Fund return
Class A	$	1,000.00	$	1,028.10		0.90%		$4.53
Class C		1,000.00		1,027.90		1.65%		8.30
Class R		1,000.00		1,040.10		1.15%		5.82
Institutional Class		1,000.00		1,036.00		0.65%		3.28
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.33		0.90%		$4.51
Class C		1,000.00		1,016.61		1.65%		8.25
Class R		1,000.00		1,019.09		1.15%		5.76
Institutional Class		1,000.00		1,021.57		0.65%		3.26

*“Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Security type
Delaware Core Bond Fund	As of April 30, 2010

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.

Security type	Percentage of net assets
Agency Asset-Backed Securities	0.13	%
Agency Collateralized Mortgage Obligations	1.20	%
Agency Mortgage-Backed Securities	25.06	%
Commercial Mortgage-Backed Securities	8.33	%
Corporate Bonds	35.41	%
Banking	13.30	%
Basic Industry	1.44	%
Brokerage	3.88	%
Capital Goods	0.31	%
Communications	4.55	%
Consumer Cyclical	0.89	%
Consumer Non-Cyclical	2.03	%
Electric	1.90	%
Energy	1.76	%
Financials	1.35	%
Insurance	1.31	%
Natural Gas	1.99	%
Real Estate	0.52	%
Technology	0.18	%
Non-Agency Asset-Backed Securities	9.30	%
Non-Agency Collateralized Mortgage Obligation	0.42	%
Regional Authorities	1.44	%
Sovereign Agencies	3.21	%
Supranational Banks	0.55	%
U.S. Treasury Obligations	11.97	%
Preferred Stock	0.18	%
Discount Note	26.01	%
Total Value of Securities	123.21	%
Liabilities Net of Receivables and Other Assets	(23.21	%)
Total Net Assets	100.00	%

Statement of net assets
Delaware Core Bond Fund	April 30, 2010 (Unaudited)

		Principal amount (U.S. $)			Value (U.S.$)
Agency Asset-Backed Securities – 0.13%
	Fannie Mae Grantor Trust
	Series 2003-T4 2A5 5.407% 9/26/33		$	11,004	$	10,002
	Fannie Mae Whole Loan
	Series 2001-W2 AS5 6.473% 10/25/31			13,758		13,871
	•Series 2002-W11 AV1 0.603% 11/25/32			2,208		2,205
Total Agency Asset-Backed Securities (cost $26,847)						26,078

Agency Collateralized Mortgage Obligations – 1.20%
	Fannie Mae REMIC
	Series 2004-49 EB 5.00% 7/25/24			65,000		69,114
	Fannie Mae Whole Loan
	Series 2003-W15 2A7 5.55% 8/25/43			26,645		28,397
	Freddie Mac REMIC
	Series 2326 ZQ 6.50% 6/15/31			53,622		58,796
	Series 3027 DE 5.00% 9/15/25			60,000		63,402
•	Vendee Mortgage Trust
	Series 2000-1 1A 6.809% 1/15/30			24,808		26,908
Total Agency Collateralized Mortgage
	Obligations (cost $239,818)					246,617

Agency Mortgage-Backed Securities – 25.06%
	Fannie Mae 8.50% 9/20/10			160		164
•	Fannie Mae ARM
	2.853% 12/1/33			20,362		21,308
	3.423% 8/1/34			31,832		33,026
	Fannie Mae FHAVA 11.00% 12/1/15			51		52
	Fannie Mae Relocation 30 yr 5.00% 1/1/34			3,971		4,082
	Fannie Mae S.F. 15 yr 8.00% 10/1/14			408		428
	Fannie Mae S.F. 15 yr TBA
	4.00% 5/1/25			400,000		406,812
	4.50% 5/1/25			1,010,000		1,049,610
	5.00% 5/1/25			400,000		422,188
	5.50% 5/1/25			590,000		630,469
	Fannie Mae S.F. 20 yr 5.50% 8/1/28			98,618		104,656
	Fannie Mae S.F. 30 yr
	5.00% 12/1/37			7,889		8,184
	5.00% 1/1/38			14,242		14,774
	5.00% 2/1/38			6,831		7,082
	7.50% 12/1/32			5,367		6,070
	9.50% 4/1/18			1,080		1,247

		Principal amount (U.S. $)			Value (U.S.$)
Agency Mortgage-Backed Securities (continued)
	Fannie Mae S.F. 30 yr TBA
	4.50% 5/1/40		$	170,000	$	171,381
	5.00% 5/1/40			550,000		569,250
•	Freddie Mac ARM
	3.326% 4/1/33			6,320		6,591
	3.417% 4/1/34			4,730		4,928
	5.066% 8/1/38			269,207		283,709
	5.694% 7/1/36			12,452		13,153
	Freddie Mac Relocation 15 yr 3.50% 10/1/18			3,714		3,647
	Freddie Mac S.F. 15 yr 5.00% 4/1/20			18,299		19,548
	Freddie Mac S.F. 15 yr TBA
	5.00% 5/1/25			180,000		190,266
	5.50% 5/1/25			180,000		192,600
	Freddie Mac S.F. 30 yr TBA
	6.00% 5/1/40			840,000		899,061
	6.50% 5/1/40			75,000		81,316
	GNMA I S.F. 15 yr
	7.50% 4/15/13			721		720
	8.50% 8/15/10			36		36
	GNMA I S.F. 30 yr 7.50% 2/15/32			3,096		3,502
Total Agency Mortgage-Backed
	Securities (cost $5,125,344)					5,149,860

Commercial Mortgage-Backed Securities – 8.33%
	Bank of America Commercial Mortgage Securities
	Series 2004-2 A3 4.05% 11/10/38			92,333		93,895
	Series 2005-1 A3 4.877% 11/10/42			32,006		31,988
	Bear Stearns Commercial Mortgage Securities
	Series 2005-PW10 A1 5.085% 12/11/40			15,499		15,623
	•Series 2005-PW10 A4 5.405% 12/11/40			225,000		233,486
	•Series 2005-T20 A4A 5.297% 10/12/42			25,000		26,348
	Series 2006-PW14 A4 5.201% 12/11/38			50,000		50,533
	Series 2007-PW15 A4 5.331% 2/11/44			25,000		24,700
	•Series 2007-PW16 A4 5.908% 6/11/40			100,000		101,827
	•Series 2007-T28 A4 5.742% 9/11/42			100,000		105,122
w•	Commercial Mortgage Pass Through Certificates
	Series 2005-C6 A5A 5.116% 6/10/44			120,000		123,712
#•	Credit Suisse First Boston Mortgage Securities
	Series 2001-SPGA A2 144A 6.515% 8/13/18			65,000		68,417

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S.$)
Commercial Mortgage-Backed Securities (continued)
•	Credit Suisse Mortgage Capital Certificates
	Series 2006-C1 AAB 5.681% 2/15/39		$	20,000	$	21,010
•	General Electric Capital Commercial Mortgage
	Series 2005-C4 A2 5.305% 11/10/45			25,000		25,305
	Goldman Sachs Mortgage Securities II
	•Series 2004-GG2 A6 5.396% 8/10/38			20,000		21,058
	Series 2005-GG4 A4 4.761% 7/10/39			35,000		35,636
	Series 2005-GG4 A4A 4.751% 7/10/39			115,000		117,577
	•Series 2006-GG6 A4 5.553% 4/10/38			120,000		122,887
•	JPMorgan Chase Commercial Mortgage Securities
	Series 2005-LDP5 A4 5.344% 12/15/44			25,000		26,257
	Lehman Brothers-UBS Commercial Mortgage Trust
	Series 2004-C1 A4 4.568% 1/15/31			100,000		102,920
	Morgan Stanley Capital I
	Series 2005-HQ6 A4A 4.989% 8/13/42			160,000		165,618
	•Series 2007-T27 A4 5.802% 6/11/42			190,000		199,263
Total Commercial Mortgage-Backed
	Securities (cost $1,633,171)					1,713,182

Corporate Bonds – 35.41%
Banking – 13.30%
#	Achmea Hypotheekbank 144A 3.20% 11/3/14			100,000		102,043
	Bank of America
	4.50% 4/1/15			245,000		247,515
	5.75% 12/1/17			20,000		20,464
	Barclays Bank 5.20% 7/10/14			200,000		214,713
	BB&T
	5.20% 12/23/15			30,000		31,867
	5.25% 11/1/19			171,000		174,386
	Capital One Financial 7.375% 5/23/14			140,000		161,951
	Citigroup 6.01% 1/15/15			175,000		186,697
	Credit Suisse 5.40% 1/14/20			200,000		203,997
#	Dexia Credit Local 144A 2.75% 1/10/14			100,000		101,842
	JPMorgan Chase Capital XXII 6.45% 2/2/37			10,000		9,469
	JPMorgan Chase Capital XXV 6.80% 10/1/37			150,000		150,843
	KFW 4.00% 1/27/20			55,000		55,280
#	NIBC Bank 144A 2.80% 12/2/14			100,000		100,319

		Principal amount (U.S. $)			Value (U.S.$)
Corporate Bonds (continued)
Banking (continued)
	Oesterreichische Kontrollbank
	1.75% 3/11/13		$	50,000	$	50,077
	4.875% 2/16/16			95,000		103,931
	PNC Funding
	5.125% 2/8/20			210,000		214,222
	5.25% 11/15/15			15,000		15,967
	Regions Financial
	5.75% 6/15/15			5,000		5,010
	7.75% 11/10/14			60,000		64,854
	Rentenbank
	3.125% 7/15/15			50,000		50,740
	3.25% 3/15/13			55,000		57,521
	4.125% 7/15/13			25,000		26,704
	US Bancorp 3.15% 3/4/15			55,000		55,330
•	USB Capital IX 6.189% 4/15/49			70,000		61,513
	Wachovia
	5.25% 8/1/14			195,000		207,070
	5.625% 10/15/16			40,000		42,734
•	Wells Fargo Capital XIII 7.70% 12/29/49			15,000		15,675
						2,732,734
Basic Industry – 1.44%
	Cytec Industries 8.95% 7/1/17			50,000		61,206
	Dow Chemical 8.55% 5/15/19			65,000		79,556
	International Paper 9.375% 5/15/19			50,000		63,702
	Reliance Steel & Aluminum 6.85% 11/15/36			10,000		8,988
	Teck Resources 9.75% 5/15/14			45,000		54,900
	Vale Overseas 6.875% 11/10/39			25,000		26,355
						294,707
Brokerage – 3.88%
	Bear Stearns 6.40% 10/2/17			100,000		110,797
#	FIH Erhvervsbank 144A 1.75% 12/6/12			100,000		100,373
	Goldman Sachs Group
	�� 5.375% 3/15/20			80,000		77,853
	5.95% 1/18/18			5,000		5,137
	6.15% 4/1/18			20,000		20,750
	6.25% 9/1/17			160,000		167,711

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S.$)
Corporate Bonds (continued)
Brokerage (continued)
	Jefferies Group
	5.875% 6/8/14		$	10,000	$	10,640
	6.45% 6/8/27			15,000		13,827
	Lazard Group
	6.85% 6/15/17			45,000		45,815
	7.125% 5/15/15			5,000		5,296
	Morgan Stanley
	5.375% 10/15/15			130,000		134,836
	6.25% 8/28/17			100,000		103,741
						796,776
Capital Goods – 0.31%
	Allied Waste North America
	6.875% 6/1/17			10,000		11,041
	7.125% 5/15/16			20,000		21,852
	Thermo Fisher Scientific
	3.20% 5/1/15			15,000		15,106
	4.70% 5/1/20			15,000		15,280
						63,279
Communications – 4.55%
	American Tower 7.00% 10/15/17			45,000		50,513
	AT&T 6.50% 9/1/37			90,000		96,201
	Comcast
	5.85% 11/15/15			30,000		33,330
	6.30% 11/15/17			20,000		22,201
	6.95% 8/15/37			45,000		50,280
#	COX Communications 144A
	6.25% 6/1/18			20,000		21,872
	6.45% 12/1/36			5,000		5,245
	DIRECTV Holdings/Financing 7.625% 5/15/16			145,000		162,054
#	NBC Universal 144A 5.15% 4/30/20			70,000		70,954
	Qwest 8.375% 5/1/16			50,000		57,250
	Rogers Communications 7.50% 3/15/15			25,000		29,475
	Telecom Italia Capital 5.25% 10/1/15			170,000		175,507
	Time Warner Cable
	8.25% 2/14/14			5,000		5,907
	8.25% 4/1/19			55,000		67,335
	Verizon Communications 6.40% 2/15/38			10,000		10,744

		Principal amount (U.S. $)			Value (U.S.$)
Corporate Bonds (continued)
Communications (continued)
#	Vivendi 144A
	5.75% 4/4/13		$	30,000	$	32,596
	6.625% 4/4/18			40,000		44,380
						935,844
Consumer Cyclical – 0.89%
t#	CVS Pass Through Trust 144A 8.353% 7/10/31			148,138		177,806
	International Game Technology 7.50% 6/15/19			5,000		5,832
						183,638
Consumer Non-Cyclical – 2.03%
	Beckman Coulter
	6.00% 6/1/15			15,000		16,545
	7.00% 6/1/19			10,000		11,377
#	Brambles USA 144A
	3.95% 4/1/15			20,000		20,271
	5.35% 4/1/20			20,000		20,407
#	CareFusion 144A 6.375% 8/1/19			25,000		27,978
	Hospira 6.40% 5/15/15			30,000		33,785
	Kraft Foods 5.375% 2/10/20			50,000		51,959
	Life Technologies
	4.40% 3/1/15			5,000		5,139
	6.00% 3/1/20			65,000		68,518
	Medco Health Solutions 7.125% 3/15/18			120,000		139,611
	Yale University 2.90% 10/15/14			20,000		20,439
						416,029
Electric – 1.90%
#	American Transmission Systems 144A
	5.25% 1/15/22			65,000		66,792
	Illinois Power 9.75% 11/15/18			45,000		59,192
	PacifiCorp 5.50% 1/15/19			205,000		223,668
	Pennsylvania Electric 5.20% 4/1/20			20,000		20,488
	Public Service Oklahoma 5.15% 12/1/19			20,000		20,787
						390,927
Energy – 1.76%
	Anadarko Finance 7.50% 5/1/31			25,000		28,867
	Nexen 7.50% 7/30/39			25,000		29,963
	Noble Energy 8.25% 3/1/19			15,000		18,496
	Petrobras International Finance 5.75% 1/20/20			5,000		5,103

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S.$)
Corporate Bonds (continued)
Energy (continued)
	Pride International 8.50% 6/15/19		$	15,000	$	17,306
#	Ras Laffan Liquefied Natural Gas III 144A
	5.832% 9/30/16			90,000		97,109
#	SEMCO Energy 144A 5.15% 4/21/20			15,000		15,428
	Transocean 6.80% 3/15/38			25,000		27,711
	Weatherford International 9.625% 3/1/19			45,000		58,291
#	Woodside Finance 144A
	4.50% 11/10/14			50,000		51,825
	8.125% 3/1/14			10,000		11,576
						361,675
Financials – 1.35%
	AngloGold Ashanti Holdings 5.375% 4/15/20			25,000		25,324
	Capital One Capital V 10.25% 8/15/39			30,000		36,188
	General Electric Capital 6.00% 8/7/19			200,000		216,570
						278,082
Insurance – 1.31%
	MetLife 6.817% 8/15/18			185,000		208,731
	Prudential Financial 3.875% 1/14/15			60,000		60,944
						269,675
Natural Gas – 1.99%
•	Enbridge Energy Partners 8.05% 10/1/37			30,000		30,520
	Energy Transfer Partners 9.70% 3/15/19			25,000		32,358
	Enterprise Products Operating
	7.50% 2/1/11			15,000		15,671
	9.75% 1/31/14			60,000		73,578
	Kinder Morgan Energy Partners 9.00% 2/1/19			55,000		70,504
#	Midcontinent Express Pipeline 144A
	5.45% 9/15/14			10,000		10,466
	6.70% 9/15/19			45,000		47,973
	Plains All American Pipeline
	5.75% 1/15/20			10,000		10,449
	8.75% 5/1/19			20,000		24,908
#	Rockies Express Pipeline 144A 5.625% 4/15/20			40,000		40,086
•	TransCanada PipeLines 6.35% 5/15/67			55,000		52,964
						409,477

		Principal amount (U.S. $)			Value (U.S.$)
Corporate Bonds (continued)
Real Estate – 0.52%
	Developers Diversified Realty 7.50% 4/1/17		$	10,000	$	10,400
#	Digital Realty Trust 144A 5.875% 2/1/20			5,000		5,032
	ProLogis
	6.25% 3/15/17			5,000		5,026
	6.875% 3/15/20			5,000		4,959
	7.375% 10/30/19			65,000		67,673
	Regency Centers 5.875% 6/15/17			14,000		14,290
						107,380
Technology – 0.18%
	National Semiconductor
	3.95% 4/15/15			15,000		15,023
	6.60% 6/15/17			20,000		22,058
						37,081
Total Corporate Bonds (cost $7,123,354)						7,277,304

Non-Agency Asset-Backed Securities – 9.30%
#•	AH Mortgage Advance Trust
	Series 2009-ADV3 A1 144A 2.194% 10/6/21			110,000		109,891
•	American Express Issuance Trust
	Series 2005-2 A 0.324% 8/15/13			100,000		99,518
#	Bank of America Auto Trust
	Series 2009-3A A4 144A 2.67% 12/15/16			100,000		101,884
•	Bank of America Credit Card Trust
	Series 2006-A11 A11 0.284% 4/15/16			65,000		64,296
	Series 2007-A6 A6 0.314% 9/15/16			75,000		74,135
	Series 2008-A5 A5 1.454% 12/16/13			100,000		101,207
•	Bank One Issuance Trust
	Series 2004-A7 A7 0.374% 5/15/14			60,000		59,935
•	Capital One Multi-Asset Execution Trust
	Series 2007-A4 A4 0.284% 3/16/15			100,000		99,573
	Chase Issuance Trust
	Series 2005-A7 A7 4.55% 3/15/13			15,000		15,410
	•Series 2009-A2 A2 1.804% 4/15/14			200,000		204,938
•	Citibank Credit Card Issuance Trust
	Series 2008-A6 A6 1.456% 5/22/17			115,000		119,482
	Series 2009-A1 A1 2.004% 3/17/14			100,000		102,886
	Series 2009-A2 A2 1.804% 5/15/14			100,000		102,711

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S.$)
Non-Agency Asset-Backed Securities (continued)
	CNH Equipment Trust
	•Series 2007-A A4 0.294% 9/17/12		$	4,421	$	4,415
	•Series 2007-B A3B 0.854% 10/17/11			117		117
	Series 2008-A A3 4.12% 5/15/12			1,531		1,546
	Series 2008-A A4A 4.93% 8/15/14			10,000		10,435
	Series 2008-B A3A 4.78% 7/16/12			4,172		4,238
	Series 2009-C A3 1.85% 12/16/13			5,000		5,031
	Series 2009-C A4 3.00% 8/17/15			110,000		111,722
	Series 2010-A A4 2.49% 1/15/16			50,000		50,134
#•	CNH Wholesale Master Note Trust
	Series 2009-1A A 144A 1.954% 7/15/15			100,000		100,765
	Discover Card Master Trust
	Series 2008-A4 A4 5.65% 12/15/15			100,000		110,445
	Harley Davidson Motorcycle Trust
	Series 2008-1 A4 4.90% 12/15/13			100,000		105,133
	John Deere Owner Trust
	Series 2010-A A4 2.13% 10/17/16			35,000		34,993
•	Merrill Auto Trust Securitization
	Series 2007-1 A4 0.314% 12/15/13			4,751		4,725
	Mid-State Trust
	Series 11 A1 4.864% 7/15/38			27,362		25,836
	#Series 2006-1 A 144A 5.787% 10/15/40			27,279		27,310
#•	Nissan Master Owner Trust Receivables
	Series 2010-AA A 144A 1.404% 1/15/15			50,000		50,131
•	World Omni Auto Receivables Trust
	Series 2007-B A3B 0.644% 1/17/12			7,977		7,980
Total Non-Agency Asset-Backed
	Securities (cost $1,902,097)					1,910,822

Non-Agency Collateralized Mortgage Obligation – 0.42%
	Deutsche Alternative Securities Loan Trust
	Series 2003-4XS A6A 4.82% 10/25/33			93,689		86,759
Total Non-Agency Collateralized Mortgage
	Obligation (cost $91,567)					86,759

		Principal amount (U.S. $)			Value (U.S.$)
Regional Authorities – 1.44%Δ
Canada – 1.44%
	Province of British Columbia Canada
	2.85% 6/15/15		$	40,000	$	40,273
	Province of Ontario Canada
	4.10% 6/16/14			145,000		153,931
	4.40% 4/14/20			100,000		101,479
Total Regional Authorities (cost $293,174)						295,683

Sovereign Agencies – 3.21%Δ
Japan – 0.49%
	Japan Finance 1.50% 7/6/12			100,000		100,250
						100,250
Norway – 1.72%
	Eksportfinans
	3.00% 11/17/14			150,000		152,460
	5.50% 5/25/16			90,000		100,964
#	Kommunalbanken 144A 2.75% 5/5/15			100,000		99,615
						353,039
Sweden – 1.00%
	Swedish Export Credit 3.25% 9/16/14			200,000		205,793
						205,793
Total Sovereign Agencies (cost $654,091)						659,082

Supranational Banks – 0.55%
	African Development Bank 3.00% 5/27/14			50,000		51,321
	Inter-American Development Bank 3.50% 7/8/13			25,000		26,425
	International Finance 3.00% 4/22/14			35,000		36,139
Total Supranational Banks (cost $113,433)						113,885

U.S. Treasury Obligations – 11.97%
	U.S. Treasury Bond 4.375% 11/15/39			85,000		82,888
	U.S. Treasury Notes
	1.00% 4/30/12			90,000		90,071
	1.75% 4/15/13			345,000		347,641
	2.50% 4/30/15			895,000		898,425
	3.625% 2/15/20			1,045,000		1,042,062
Total U.S. Treasury Obligations (cost $2,445,776)						2,461,087

Statement of net assets
Delaware Core Bond Fund

		Number of shares			Value (U.S.$)
Preferred Stock – 0.18%
•	PNC Financial Services Group 8.25%			35,000	$	37,499
Total Preferred Stock (cost $30,388)						37,499

		Principal amount (U.S. $)
≠Discount Note – 26.01%
	Federal Home Loan Bank 0.06% 5/3/10		$	5,346,032		5,346,014
Total Discount Note (cost $5,346,014)						5,346,014

Total Value of Securities – 123.21%
	(cost $25,025,074)					25,323,872
Liabilities Net of Receivables
	and Other Assets – (23.21%)z					(4,770,562	)
Net Assets Applicable to 1,944,673
	Shares Outstanding – 100.00%				$	20,553,310

Net Asset Value – Delaware Core Bond Fund
	Class A ($3,717,351 / 353,949 Shares)					$10.50
Net Asset Value – Delaware Core Bond Fund
	Class C ($38,092 / 3,613 Shares)					$10.54
Net Asset Value – Delaware Core Bond Fund
	Class R ($2,119 / 199.1 Shares)					$10.64
Net Asset Value – Delaware Core Bond Fund
	Institutional Class ($16,795,748 / 1,586,912 Shares)					$10.58

Components of Net Assets at April 30, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	20,663,565
Undistributed net investment income						2,428
Accumulated net realized loss on investments						(411,481	)
Net unrealized appreciation of investments						298,798
Total net assets					$	20,553,310


•	Variable rate security. The rate shown is the rate as of April 30, 2010.
t	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.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At April 30, 2010, the aggregate amount of Rule 144A securities was $1,730,386, which represented 8.42% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
≠	The rate shown is the effective yield at the time of purchase.
Δ	Securities have been classified by country of origin.
z	Of this amount, $4,960,020 represents payable for securities purchased as of April 30, 2010.

Summary of abbreviations:
ARM — Adjustable Rate Mortgage
FHAVA — Federal Housing Administration & Veterans Administration
GNMA — Government National Mortgage Association
REMIC — Real Estate Mortgage Investment Conduit
S.F. — Single Family
TBA — To be announced
yr — Year

Net Asset Value and Offering Price Per Share –
Delaware Core Bond Fund
Net asset value Class A (A)	$	10.50
Sales charge (4.50% of offering price) (B)		0.50
Offering price	$	11.00

(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 purchase of $100,000 or more.

See accompanying notes

Statement of operations
Delaware Core Bond Fund	Six Months Ended April 30, 2010 (Unaudited)

Investment Income:
Interest	$	186,759
Dividends		1,856	$	188,615

Expenses:
Registration fees		34,447
Management fees		31,912
Legal fees		23,055
Reports and statements to shareholders		14,367
Dividend disbursing and transfer agent fees and expenses		10,251
Audit and tax		10,137
Distribution expenses – Class A		8,156
Distribution expenses – Class C		74
Distribution expenses – Class R		6
Pricing fees		5,546
Accounting and administration expenses		2,538
Custodian fees		1,202
Trustees’ fees		275
Dues and services		211
Insurance fees		107
Consulting fees		69
Trustees’ expenses		24		142,377
Less fees waived				(92,890	)
Less waived distribution expenses – Class A				(1,359	)
Less waived distribution expenses – Class R				(1	)
Total operating expenses				48,127
Net Investment Income				140,488

Net Realized and Unrealized Gain on Investments:
Net realized gain on Investments				17,632
Net change in unrealized appreciation/depreciation of investments				192,444
Net Realized and Unrealized Gain on Investments				210,076

Net Increase in Net Assets Resulting from Operations			$	350,564

See accompanying notes

Statements of changes in net assets
Delaware Core Bond Fund

	Six Months
	Ended			Year
	4/30/10			Ended
	(Unaudited)			10/31/09
Increase in Net Assets from Operations:
Net investment income	$	140,488		$	318,523
Net realized gain on investments		17,632			210,351
Net change in unrealized
appreciation/depreciation of investments		192,444			641,103
Net increase in net assets resulting from operations		350,564			1,169,977

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(81,126	)		(337,265	)
Class C		(113	)		(6	)
Class R		(27	)		(6	)
Institutional Class		(88,106	)		(7	)
		(169,372	)		(337,284	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		224,322			153,596
Class C		35,583			2,022
Class R		—			2,022
Institutional Class		16,601,164			2,022

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		79,620			300,080
Class C		113			4
Class R		27			5
Institutional Class		79,733			6
		17,020,562			459,757
Cost of shares repurchased:
Class A		(3,000,917	)		(1,697,319	)
		(3,000,917	)		(1,697,319	)
Increase (decrease) in net assets derived from capital
share transactions		14,019,645			(1,237,562	)
Net Increase (Decrease) in Net Assets		14,200,837			(404,869	)

Net Assets:
Beginning of period		6,352,473			6,757,342
End of period (including undistributed net investment
income of $2,428 and $9,166, respectively)	$	20,553,310		$	6,352,473

See accompanying notes

Financial highlights
Delaware Core Bond Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income3

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return4

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets prior to fees

waived and expense paid indirectly

Ratio of net investment income to average net assets

prior to fees waived and expense paid indirectly

Portfolio turnover

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

2 Effective September 30, 2009, the Fund received all of the assets and liabilities of the Delaware Pooled® Trust – The Intermediate Fixed Income Portfolio (the Portfolio). The Class A shares financial highlights for the periods prior to September 30, 2009 reflect the performance of the Institutional Class shares of the Portfolio. Fees paid by Portfolio were less than Class A share fees, and performance would have been lower if Class A fees were paid. See Note 2 in “Notes to financial statements.”

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

See accompanying notes

Six Months Ended			Year Ended
4/30/101			10/31/092		10/31/082		10/31/072		10/31/062		10/31/052
(Unaudited)
	$10.370		$ 9.200		$ 9.880		$ 9.940		$ 9.960		$10.310


	0.107		0.445		0.460		0.457		0.427		0.382
	0.172		1.195		(0.643	)	(0.014	)	0.025		(0.283	)
	0.279		1.640		(0.183	)	0.443		0.452		0.099


	(0.149	)	(0.470	)	(0.497	)	(0.503	)	(0.472	)	(0.449	)
	(0.149	)	(0.470	)	(0.497	)	(0.503	)	(0.472	)	(0.449	)

	$10.500		$10.370		$ 9.200		$ 9.880		$ 9.940		$ 9.960

	2.81%		18.29%		(2.07%	)	4.68%		4.68%		0.97%


	$3,717		$6,346		$6,757		$13,791		$28,795		$15,786
	0.90%		0.70%		0.39%		0.39%		0.43%	5	0.44%

	2.40%		1.60%		1.12%		0.66%		0.67%		0.68%
	2.06%		4.35%		4.66%		4.61%		4.38%		3.76%

	0.56%		3.45%		3.93%		4.33%		4.14%		3.52%
	807%		346%		391%		251%		342%		212%

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.

5 Ratio for the year ended October 31, 2006, including fees paid indirectly in accordance with Securities and Exchange Commission rules, was 0.44%.

Financial highlights
Delaware Core Bond Fund Class C

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

	Six Months Ended			9/30/092
	4/30/101			to
	(Unaudited)			10/31/09
Net asset value, beginning of period		$10.370		$10.310

Income from investment operations:
Net investment income3		0.069		0.030
Net realized and unrealized gain on investments		0.209		0.059
Total from investment operations		0.278		0.089

Less dividends and distributions from:
Net investment income		(0.108	)	(0.029	)
Total dividends and distributions		(0.108	)	(0.029	)

Net asset value, end of period		$10.540		$10.370

Total return4		2.79%		0.86%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$38		$2
Ratio of expenses to average net assets		1.65%		1.65%
Ratio of expenses to average net assets
prior to fees waived		3.10%		5.32%
Ratio of net investment income to average net assets		1.31%		3.33%
Ratio of net investment loss to average
net assets prior to fees waived		(0.14%	)	(0.34%	)
Portfolio turnover		807%		346%	5

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

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

3 The average shows 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.

5 Portfolio turnover is representative of the Fund for the entire year.

See accompanying notes

Delaware Core Bond Fund Class R

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

	Six Months Ended			9/30/092
	4/30/101			to
	(Unaudited)			10/31/09
Net asset value, beginning of period		$10.370		$	10.310

Income from investment operations:
Net investment income3		0.093			0.035
Net realized and unrealized gain on investments		0.310			0.059
Total from investment operations		0.403			0.094

Less dividends and distributions from:
Net investment income		(0.133	)		(0.034	)
Total dividends and distributions		(0.133	)		(0.034	)

Net asset value, end of period		$10.640		$	10.370

Total return4		4.01%			0.90%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$2			$2
Ratio of expenses to average net assets		1.15%			1.15%
Ratio of expenses to average net assets
prior to fees waived		2.70%			4.92%
Ratio of net investment income to average net assets		1.81%			3.83%
Ratio of net investment income to average net assets
prior to fees waived		0.26%			0.06%
Portfolio turnover		807%			346%	5

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

2 Date of commencement of operations; ratios have been annualized and total return has 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.

5 Portfolio turnover is representative of the Fund for the entire year.

See accompanying notes

Financial highlights

Delaware Core Bond Fund Institutional Class

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

	Six Months Ended			9/30/092
	4/30/101			to
	(Unaudited)			10/31/09
Net asset value, beginning of period		$10.370		$	10.310

Income from investment operations:
Net investment income3		0.120			0.039
Net realized and unrealized gain on investments		0.251			0.060
Total from investment operations		0.371			0.099

Less dividends and distributions from:
Net investment income		(0.161	)		(0.039	)
Total dividends and distributions		(0.161	)		(0.039	)

Net asset value, end of period		$10.580		$	10.370

Total return4		3.60%			0.96%

Ratios and supplemental data:
Net assets, end of period (000 omitted)		$16,796			$2
Ratio of expenses to average net assets		0.65%			0.65%
Ratio of expenses to average net assets
prior to fees waived		2.10%			4.32%
Ratio of net investment income to average net assets		2.31%			4.33%
Ratio of net investment income to average net assets
prior to fees waived		0.86%			0.66%
Portfolio turnover		807%			346%	5

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

2 Date of commencement of operations; ratios have been annualized and total return has 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.

5 Portfolio turnover is representative of the Fund for the entire year.

See accompanying notes

Notes to financial statements
Delaware Core Bond Fund		April 30, 2010 (Unaudited)

Delaware Group® Income Funds (Trust) is organized as a Delaware statutory trust and offers five Series: Delaware Core Bond Fund, Delaware Corporate Bond Fund, Delaware Extended Duration Bond Fund, Delaware Diversified Floating Rate Fund and Delaware High-Yield Opportunities Fund. These financial statements and the related notes pertain to Delaware Core Bond Fund (Fund). The Trust is an open-end investment company. The Fund is considered diversified under the Investment Company Act of 1940, as amended, and 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 4.50%. 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 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 the Fund is to seek maximum long term total return, consistent with reasonable risk.

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 Fund.

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. Securities listed on foreign exchange are 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. Other debt securities, credit default swap (CDS) contracts and interest rate swap contracts are valued by an independent pricing service or broker. 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. Financial futures contracts and options on futures contracts are valued at the daily quoted settlement prices. 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 Fund’s 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 Fund 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 the Fund values its securities at 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

Notes to financial statements

Delaware Core Bond Fund

1. Significant Accounting Policies (continued)

may have occurred in the interim. To account for this, the Fund 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 the 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 Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax return 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 Fund’s tax positions taken on federal income tax returns for all open tax years (October 31, 2006 – October 31, 2009), and has concluded that no position for federal income tax is required in the Fund’s financial statements.

Class Accounting — Investment income and common expenses are allocated to the various classes of the Fund on the basis of “settled shares” of each class in relation to the net assets of the Fund. Realized and unrealized gains (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

Repurchase Agreements — The Fund may invest in a pooled cash account along with other members of the Delaware Investments® Family of Funds pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund’s custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is at least 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings. At April 30, 2010, the Fund held no investments in repurchase agreements.

Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of 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.

Other — Expenses directly attributable to the Fund are charged directly to the Fund. 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 lives of the respective securities. Realized gains (losses) on paydowns of mortgage- and asset-backed securities are classified as interest income. The Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually.

The Fund may receive earnings credits from its custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the period ended April 30, 2010.

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

In accordance with the terms of its investment management agreement, the Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee which is calculated daily at the rate of 0.50% on the first $500 million of average daily net assets of the Fund, 0.475% on the next $500 million, 0.45% on the next $1.5 billion, and 0.425% 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 the Fund to the extent necessary to ensure the annual operating expenses, (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program 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 (collectively, nonroutine expenses)), do not exceed 0.65% of average daily net assets of the Fund through November 30, 2010. For purposes of this waiver and reimbursement, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by the Fund’s Board and DMC. This expense waiver and reimbursement applies only to expenses paid directly by the Fund.

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Fund. For these services, the Fund pays 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 April 30, 2010, the Fund was charged $319 for these services.

DSC also provides dividend disbursing and transfer agency services. The 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, the 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 C shares

Notes to financial statements
Delaware Core Bond Fund

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

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 waive distribution and service fees of Class A and Class R shares from exceeding 0.25% and 0.50%, respectively, of average daily net assets through November 30, 2010.

At April 30, 2010, the Fund had receivables due from or liabilities payable to affiliates as follows:

Receivables from DMC under expense limitation agreement	$	11,120
Dividend disbursing, transfer agent and fund accounting
oversight fees and other expenses payable to DSC		(127	)
Distribution fees payable to DDLP		(784	)
Other expenses payable to DMC and affiliates*		(2,268	)

*DMC, as part of its administrative services, pays operating expenses on behalf of the Fund and is reimbursed on a periodic basis. Such 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, the Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to the Fund by DMC and/or its affiliates’ employees. For the six months ended April 30, 2010, the Fund was charged $ 432 for internal legal and tax services provided by DMC and/or its affiliates’ employees.

For the six months ended April 30, 2010, DDLP earned $10 for commissions on sales of the Fund’s Class A shares.

Trustees’ fees include expenses accrued by the Fund 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 Fund.

3. Investments

For the six months ended April 30, 2010, the Fund made purchases of $31,672,193 and sales of $19,254,376 of investment securities other than U.S. government securities and short-term investments. For the six months ended April 30, 2010, the Fund made purchases of $27,776,572 and sales of $26,622,848 of long-term U.S. government securities.

At April 30, 2010, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At April 30, 2010, the cost of investments was $25,047,913. At April 30, 2010, the net unrealized appreciation was $275,959, of which $299,935 related to unrealized appreciation of investments and $23,976 related to unrealized depreciation of investments.

U.S. GAAP defines fair value as the price that the 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. The 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

Level 2 – inputs are observable, directly or indirectly

Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of April 30, 2010:

	Level 1		Level 2		Level 3		Total
Agency, Asset-Backed &
Mortgage-Backed Securities	$	—	$	8,938,300	$	195,018	$	9,133,318
Corporate Debt		—		7,277,304		—		7,277,304
Foreign Debt		—		1,068,650		—		1,068,650
U.S. Treasury Obligations		2,461,087		—		—		2,461,087
Short-Term		—		5,346,014		—		5,346,014
Other		—		37,499		—		37,499
Total	$	2,461,087	$	22,667,767	$	195,018	$	25,323,872

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

	Agency, Asset-Backed &
	Mortgage-Backed
			Securities
Balance as of 10/31/09		$	37,000
Net change in unrealized appreciation/depreciation			76,052
Purchases			185,480
Sales			(35,000	)
Net realized loss			(68,514	)
Balance as of 4/30/10		$	195,018

Net change in unrealized appreciation/depreciation
from investments still held as of 4/30/10		$	(462	)

Notes to financial statements
Delaware Core Bond Fund

3. Investments (continued)

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented above. The new disclosures and clarifications of existing disclosures are generally effective for the Fund’s year ending October 31, 2011 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

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 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 April 30, 2010 and the year ended October 31, 2009 was as follows:

	Six Months Ended	Year Ended
	4/30/10*	10/31/09
Ordinary income	$169,372	$337,284

*Tax information for the period ended April 30, 2010 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

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 April 30, 2010, the estimated components of net assets on a tax basis were as follows:

Shares of beneficial interest	$	20,663,565
Undistributed ordinary income		2,428
Realized gains 11/1/09 – 4/30/10		14,623
Capital loss carryforwards as of 10/31/09		(393,084	)
Other temporary differences		(10,181	)
Unrealized appreciation of investments		275,959
Net assets	$	20,553,310

The differences between book basis and tax basis components of the net assets are primarily attributable to tax deferral of losses on wash sales, straddles 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 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 April 30, 2010, the Fund recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end:

Undistributed net investment income		$	22,146
Accumulated net realized gain			(22,146	)

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at October 31, 2009 will expire as follows: $120,154 expires in 2014, and $272,930 expires in 2015.

For the six months ended April 30, 2010, the Fund had capital gains of $14,623, which may reduce the capital loss carryforwards.

6. Capital Shares

Transactions in capital shares were as follows:

	Six Months		Year
	Ended		Ended
	4/30/10		10/31/09
Shares sold:
Class A	21,307		16,224
Class C	3,406		196
Class R	—		196
Institutional Class	1,579,146		196

Shares issued upon reinvestment of dividends and distributions:
Class A	7,989		30,960
Class C	11		—
Class R	2		1
Institutional Class	7,569		1
	1,619,430		47,774

Shares repurchased:
Class A	(287,444	)	(169,379	)
	(287,444	)	(169,379	)
Net increase (decrease)	1,331,986		(121,605	)

Notes to financial statements
Delaware Core Bond Fund

7. Line of Credit

The Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), participates in a $35,000,000 revolving line of credit with The Bank of New York Mellon (BNY Mellon) 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 are charged an annual commitment fee, which is allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The agreement expires on November 16, 2010. The Fund had no amounts outstanding as of April 30, 2010 or at any time during the period then ended.

8. Securities Lending

The Fund, along with other funds in the Delaware Investments® Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with BNY Mellon. With respect to each loan, if the aggregate market value of securities collateral held plus cash collateral received on any business day 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 not less than the applicable collateral requirements. Cash collateral received is generally invested in the BNY Mellon Securities Lending Overnight Fund (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of clients participating in its securities lending programs. The Collective Trust may only hold cash and high quality assets with a maturity of one business day or less (Cash/Overnight Assets). The Collective Trust 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 Fund may incur investment losses as a result of investing securities lending collateral in the Collective Trust. This could occur if an investment in the Collective Trust defaulted or if it were necessary to liquidate assets in the Collective Trust to meet returns on outstanding security loans at a time when the Collective Trust’s net asset value per unit was less than $1.00. Under those circumstances, the Fund may not receive an amount from the Collective Trust that is equal in amount to the collateral the Fund would be required to return to the borrower of the securities and the Fund would be required to make up for this shortfall. The Fund 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 Fund, or at the discretion of the lending agent, replace the loaned securities. The Fund continues 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 Fund has 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 Fund receives 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 Fund, the security lending agent and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower. The Fund had no securities out on loan as of April 30, 2010.

9. Credit and Market Risk

The 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 the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages or 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 obligations 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 affect on the Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.

The 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 the 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 Fund’s Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund’s limitation on investments in illiquid assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 15% limit on investments in illiquid securities. As of April 30, 2010, no securities have been determined to be illiquid under the Fund’s Liquidity Procedures. Rule 144A securities have been identified on the statement of net assets.

10. Contractual Obligations

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

Notes to financial statements
Delaware Core Bond Fund

11. Sale of Delaware Investments to Macquarie Group

On August 18, 2009, Lincoln National Corporation (former parent company of Delaware Investments) and Macquarie Group (Macquarie) entered into an agreement pursuant to which Delaware Investments, including DMC, DDLP and DSC, would be acquired by Macquarie, an Australia-based global provider of banking, financial, advisory, investment and funds management services (Transaction). The Transaction was completed on January 4, 2010. DMC, DDLP and DSC are now wholly owned subsidiaries of Macquarie.

The Transaction resulted in a change of control of DMC which, in turn, caused the termination of the investment management agreement between DMC and the Fund. On January 4, 2010, the new investment management agreement between DMC and the Fund that was approved by the shareholders became effective.

12. Subsequent Events

Management has determined no material events or transactions occurred subsequent to April 30, 2010 that would require recognition or disclosure in the Fund’s financial statements.

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of New Investment Advisory Agreement

At a meeting held on September 3, 2009 (the “Meeting”), the Board of Trustees of the Delaware Investments® Family of Funds (the “Board”), including the independent Trustees, unanimously approved a new investment advisory agreement between each registrant on behalf of each series (each, a “Fund” and together, the “Funds”) and Delaware Management Company (“DMC”) in connection with the sale of Delaware Investments’ advisory business to Macquarie Bank Limited (the “Macquarie Group”) (the “Transaction”). In making its decision, the Board considered information furnished specifically in connection with the approval of the new investment advisory agreements with DMC (the “New Investment Advisory Agreements”) which included extensive materials about the Transaction and matters related to the proposed approvals. To assist the Board in considering the New Investment Advisory Agreements, Macquarie Group provided materials and information about Macquarie Group, including detailed written responses to the questions posed by the independent Trustees. DMC also provided materials and information about the Transaction, including detailed written responses to the questions posed by the independent Trustees.

At the Meeting, the Trustees discussed the Transaction with DMC management and with key Macquarie Group representatives. The Meeting included discussions of the strategic rationale for the Transaction and Macquarie Group’s general plans and intentions regarding the Funds and DMC. The Board members also inquired about the plans for, and anticipated roles and responsibilities of, key employees and officers of Delaware Management Holdings Inc. and DMC in connection with the Transaction.

In connection with the Trustees’ review of the New Investment Advisory Agreements for the Funds, DMC and/or Macquarie Group emphasized that:

They expected that there would be no adverse changes as a result of the Transaction, in the nature, quality, or extent of services currently provided to the Funds and their shareholders, including investment management, distribution, or other shareholder services.
No material changes in personnel or operations were contemplated in the operation of DMC under Macquarie Group as a result of the Transaction and no material changes were currently contemplated in connection with third party service providers to the Funds.
Macquarie Group had no intention to cause DMC to alter the voluntary expense waivers and reimbursements currently in effect for the Funds.
Under the agreement between Macquarie Group and Lincoln National Corporation (“LNC”) (the “Transaction Agreement”), Macquarie Group has agreed to conduct, and to cause its affiliates to conduct, their respective businesses in compliance with the conditions of Section 15(f) of the Investment Company Act of 1940 (the “1940 Act”) with respect to the Funds, to the extent within its control, including maintaining Board composition of at least 75% of the Board members qualifying as independent Trustees and not imposing any “unfair burden” on the Funds for at least two years from the closing of the Transaction (the “Closing”).

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of New Investment Advisory Agreement (continued)

In addition to the information provided by DMC and Macquarie Group as described above, the Trustees also considered all other factors they believed to be relevant to evaluating the New Investment Advisory Agreements, including the specific matters discussed below. In their deliberations, the Trustees did not identify any particular information that was controlling, and different Trustees may have attributed different weights to the various factors. However, for each Fund, the Trustees determined that the overall arrangements between the Fund and DMC, as provided in the respective New Investment Advisory Agreement, including the proposed advisory fee and the related administration arrangements between the Fund and DMC, were fair and reasonable in light of the services to be performed, expenses incurred, and such other matters as the Trustees considered relevant. Factors evaluated included:

The potential for expanding distribution of Fund shares through access to Macquarie Group’s existing distribution channels;
Delaware Investments’ acquisition of an exclusive wholesaling sales force from a subsidiary of LNC;
The reputation, financial strength, and resources of Macquarie Group as well as its historic and ongoing commitment to the asset management business in Australia as well as other parts of the world;
The terms and conditions of the New Investment Advisory Agreements, including that each Fund’s total contractual fee rate under the New Investment Advisory Agreement will remain the same;
The Board’s full annual review (or initial approval) of the current investment advisory agreements at their in-person meeting in May 2009 as required by the 1940 Act and its determination that (i) DMC had the capabilities, resources, and personnel necessary to provide the satisfactory advisory and administrative services currently provided to each Fund and (ii) the advisory and/or management fees paid by each Fund, taking into account any applicable fee waivers and breakpoints, represented reasonable compensation to DMC in light of the services provided, the costs to DMC of providing those services, economies of scale, and the fees and other expenses paid by similar funds and such other matters that the Board considered relevant in the exercise of its reasonable judgment;
The portfolio management teams for the Funds are not currently expected to change as a result of the Transaction;
LNC and Macquarie Group were expected to execute a reimbursement agreement pursuant to which LNC and Macquarie Group would agree to pay (or reimburse) all reasonable out-of-pocket costs and expenses of the Funds in connection with the Board’s consideration of the Transaction, the New Investment Advisory Agreements and related agreements, and all costs related to the proxy solicitation (the “Expense Agreement”);

The likelihood that Macquarie Group would invest additional amounts in Delaware Investments, including DMC, which could result in increased assets under management, which in turn would allow some Funds the potential opportunity to achieve economies of scale and lower fees payable by Fund shareholders; and
The compliance and regulatory history of Macquarie Group and its affiliates.

In making their decision relating to the approval of each Fund’s New Investment Advisory Agreement, the independent Trustees gave attention to all information furnished. The following discussion, however, identifies the primary factors taken into account by the Trustees and the conclusions reached in approving the New Investment Advisory Agreements.

Nature, Extent, and Quality of Service. The Trustees considered the services historically provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered that the New Investment Advisory Agreements would be substantially similar to the current investment advisory agreements between the Funds and DMC (the “Current Investment Advisory Agreements”), and therefore, considered the many reports furnished to them throughout 2008 and 2009 at regular Board meetings covering matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; the compliance of management personnel with the code of ethics adopted throughout the Delaware Investments Family of Funds complex; and the adherence to fair value pricing procedures as established by the Board. The Trustees were pleased with the current staffing of DMC and the emphasis placed on research and risk management in the investment process. Favorable consideration was given to DMC’s efforts to maintain expenditures and, in some instances, increase financial and human resources committed to Fund matters.

The Board also considered the transfer agent and shareholder services that would continue to be provided to Fund shareholders by DMC’s affiliate, Delaware Service Company, Inc. (“DSC”). The Trustees noted, in particular, DSC’s commitment to maintain a high level of service as well as DMC’s expenditures to improve the delivery of shareholder services. The Board was assured that shareholders would continue to receive the benefits provided to Fund shareholders by being part of the Delaware Investments Family of Funds, including each shareholder’s ability to exchange an investment in one Delaware Investments Fund for the same class of shares in another Delaware Investments Fund without a sales charge, to reinvest Fund dividends into additional shares of any of the Funds, and the privilege to combine holdings in other Funds to obtain a reduced sales charge.

Based on the information provided by DMC and Macquarie Group, including that Macquarie Group and DMC currently expected no material changes as a result of the Transaction in (i) personnel or operations of DMC or (ii) third party service providers to the Funds, the Board concluded that the satisfactory nature, extent, and quality of services currently provided to the Funds and their shareholders were very likely to continue under the New Investment Advisory

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of New Investment Advisory Agreement (continued)

Agreements. Moreover, the Board concluded that the Funds would probably benefit from the expanded distribution resources that would become available to Delaware Investments following the Transaction. The Board also concluded that it was very unlikely that any “unfair burden” would be imposed on any of the Funds for the first two years following the Closing as a result of the Transaction. Consequently, the Board concluded that it did not expect the Transaction to result in any adverse changes in the nature, quality, or extent of services (including investment management, distribution or other shareholder services) currently provided to the Funds and their shareholders.

Investment Performance. The Board considered the overall investment performance of DMC and the Funds. The Trustees placed significant emphasis on the investment performance of the Funds in view of its importance to shareholders. Although the Trustees gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Trustees gave particular weight to their review of investment performance in connection with the approval of the Current Investment Advisory Agreements at the Board meeting held in May 2009. At that meeting, the Trustees reviewed reports prepared by Lipper, Inc., an independent statistical compilation organization (“Lipper”), which showed each Fund’s investment performance as of December 31, 2008 in comparison to a group of funds selected by Lipper as being similar to the Fund (the “Performance Universe”). During the May 2009 agreement review process, the Trustees observed the significant improvements to relative investment performance of the Funds compared to the Funds’ performance as of December 31, 2007.

At their meeting on September 3, 2009, the Trustees, including the independent Trustees in consultation with their independent counsel, reviewed the investment performance of each Fund. The Trustees compared the performance of each Fund relative to that of its respective Performance Universe for the 1-, 3-, 5-, and 10-year periods ended June 30, 2009 and compared its relative investment performance against the corresponding relative investment performance of each Fund for such time periods ended December 31, 2008, to the extent applicable. As of June 30, 2009, 30 of the Funds had investment performance relative to that of the respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for all applicable time periods. At June 30, 2009, an additional 6 Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for a majority of the applicable time periods. At June 30, 2009, 15 additional Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative performance at December 31, 2008 and only 29 Funds had poorer relative investment performance at June 30, 2009 compared to that at December 31, 2008.

The Board therefore concluded that the investment performance of the Funds, on an aggregate basis, had continued to improve relative to their respective Performance Universe since the data reviewed at the May 2009 meeting. Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreement would likely have an adverse effect on the investment performance of any Fund because (i) DMC and Macquarie Group did not currently expect the Transaction to cause any material change to the Funds’ portfolio management teams responsible for investment performance, which the Board found to be satisfactory and improving; and (ii) as discussed in more detail below, the Funds’ expenses were not expected to increase as a result of the Transaction.

Comparative Expenses. The Trustees also considered expense comparison data for the Funds previously provided in May 2009. At that meeting, DMC had provided the Board with information on pricing levels and fee structures for the Funds and comparative funds. The Trustees focused on the comparative analysis of the effective management fees and total expense ratios of each Fund versus the effective management fees and expense ratios of a group of funds selected by Lipper as being similar to each Fund (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) of other funds within the Expense Group, taking into account any applicable breakpoints and fee limitations. Each Fund’s total expenses were also compared with those of its Expense Group. The Trustees also considered fees paid to Delaware Investments for nonmanagement services. At the September 3, 2009 meeting, DMC advised the Board that the more recent comparative expenses for the Funds remained consistent with the previous review in May 2009 and, consequently, the Trustees concluded that expenses of the Funds were satisfactory.

The Board also considered the Expense Agreement under negotiation in evaluating Fund expenses. The Trustees expected that the Expense Agreement would provide that LNC and Macquarie Group would pay or reimburse the Trusts for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the consideration of the New Investment Advisory Agreements (subject to certain limited exceptions).

Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreements likely would have an adverse effect on the Funds’ expenses because (i) each Fund’s contractual fee rates under the New Investment Advisory Agreement would remain the same; (ii) under the Expense Agreement, the Funds would be reimbursed for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the related proxy solicitation (subject to certain limited exceptions); and (iii) the expense ratios of certain Funds might decline as a result of the possible increased investment in Delaware Investments by Macquarie Group, as discussed below under “Economies of Scale.”

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of New Investment Advisory Agreement (continued)

Management Profitability. At their meeting on September 3, 2009, the Board evaluated DMC’s profitability in connection with the operation of the Funds. The Board had previously considered DMC’s profitability in connection with the operation of the Funds at its May 2009 meeting. At that meeting, the Board reviewed an analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the Funds and the Delaware Investments Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability.

At the May 2009 meeting, representatives of DMC had stated that the level of profits of DMC, to a certain extent, reflect operational cost savings and efficiencies initiated by Delaware Investments (including DMC and its affiliates that provide services to the Funds). The Board considered Delaware Investments’ efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide U.S. Securities and Exchange Commission initiatives. At that meeting, the Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC. At the September 3, 2009 meeting, DMC advised the Board that DMC did not expect the Transaction to affect materially the profitability of Delaware Investments compared to the level of profitability considered during the May 2009 review. Moreover, the Trustees reviewed pro forma balance sheets of certain key companies in Delaware Investments as of June 30, 2009 (which were provided by Macquarie Group and DMC in response to the Trustees’ requests) and evaluated the projections of Delaware Investments’ capitalization following the Transaction for purposes of evaluating the financial ability of Delaware Investments to continue to provide the nature, extent, and quality of services as it had under the Current Investment Advisory Agreement.

Based on information provided by DMC and Macquarie Group, the Board concluded that DMC and Delaware Investments would be sufficiently capitalized following the Transaction to continue the same level and quality of services to the Funds under the New Investment Advisory Agreements as was the case under the Current Investment Advisory Agreements. The Board also concluded that Macquarie Group had sufficient financial strength and resources, as well as an ongoing commitment to a global asset management business, to continue investing in Delaware Investments, including DMC, to the extent that Macquarie Group determined it was appropriate. Finally, because services and costs were expected to be substantially the same (and DMC had represented that, correspondingly, profitability would be about the same), under the New Investment Advisory Agreements as under the Current Investment Advisory Agreements, the Trustees concluded that the profitability of Delaware Investments would not result in an inequitable charge on the Funds or their shareholders. Accordingly, the Board concluded that the fees charged under the New Investment Advisory Agreements would be reasonable in light of the services to be provided and the expected profitability of DMC.

Economies of Scale. The Trustees considered whether economies of scale would be realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale would be reflected in the management fees charged. The Trustees took into account DMC’s practice of maintaining the competitive nature of management fees based on its analysis of fees charged by comparable funds. DMC management believed, and the Board agreed, that the Funds were priced with breakpoints and relatively low management fees to reflect potential economies of scale to Fund shareholders.

The Board also acknowledged Macquarie Group’s statement that the Transaction would not by itself immediately provide additional economies of scale given Macquarie Group’s limited presence in the U.S. mutual fund market. Nonetheless, the Trustees concluded that additional economies of scale could potentially be achieved in the future if DMC were owned by Macquarie Group as a result of Macquarie Group’s willingness to invest further in Delaware Investments if appropriate opportunities arise. The Board further concluded that potential economies of scale could be achieved as a result of Delaware Investments’ expanded distribution capabilities arising from the Transaction, as well as opportunities that might arise from Macquarie Group’s global asset management business.

Fall-Out Benefits. The Board acknowledged that DMC would continue to benefit from soft dollar arrangements using portfolio brokerage of each Fund that invests in equity securities and that DMC’s profitability would likely be somewhat lower without the benefit of practices with respect to allocating Fund portfolio brokerage for brokerage and research services. The Board also considered that Macquarie Group and Delaware Investments may derive reputational, strategic, and other benefits from their association with the Delaware Investments Family of Funds, including service relationships with DMC, DSC, and Delaware Distributors, L.P., and evaluated the extent to which Delaware Investments might derive ancillary benefits from Fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds and the benefits from allocation of Fund brokerage to improve trading efficiencies. However, the Board concluded that (i) any such benefits under the New Investment Advisory Agreements would not be dissimilar from those existing under the Current Investment Advisory Agreements; (ii) such benefits did not impose a cost or burden on the Funds or their shareholders; and (iii) such benefits would probably have an indirectly beneficial effect on the Funds and their shareholders because of the added importance that DMC and Macquarie Group might attach to the Funds as a result of the fall-out benefits that the Funds conveyed.

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of New Investment Advisory Agreement (continued)

Board Review of Macquarie Group. The Trustees reviewed detailed information supplied by Macquarie Group about its operations as well as other information regarding Macquarie Group provided by independent legal counsel to the independent Trustees. Based on this review, the Trustees concluded that Delaware Investments would continue to have the financial ability to maintain the high quality of services required by the Funds. The Trustees noted that there would be a limited transition period during which some services previously provided by LNC to Delaware Investments would continue to be provided by LNC after the Closing, and concluded that this arrangement would help minimize disruption in Delaware Investments’ provision of services to the Funds following the Transaction.

The Board considered Macquarie Group’s support for Delaware Investments’ plans for Fund distribution by transferring wholesalers from Lincoln Financial Distributors, Inc., LNC’s retail distributor, to Delaware Investments, and Macquarie Group’s current intention to leave the Funds’ other service providers in place. The Board also considered Macquarie Group’s current strategic plans to increase its asset management activities, one of its core businesses, particularly in North America, and its statement that its acquisition of DMC is an important component of this strategic growth and the establishment of a significant presence in the United States. Based in part on the information provided by DMC and Macquarie Group, the Board concluded that Macquarie Group’s acquisition of Delaware Investments could potentially enhance the nature, quality, and extent of services provided to the Funds and their shareholders.

Conclusion. The Board concluded that the advisory fee rate under each New Investment Advisory Agreement was reasonable in relation to the services provided and that execution of the New Investment Advisory Agreement would be in the best interests of the shareholders. For each Fund, the Trustees noted that they had concluded in their most recent advisory agreement continuance considerations in May 2009 that the management fees and total expense ratios were at acceptable levels in light of the quality of services provided to the Funds and in comparison to those of the Funds’ respective peer groups; that the advisory fee schedule would not be increased and would stay the same for all of the Funds; that the total expense ratio had not changed materially since that determination; and that DMC had represented that the overall expenses for each Fund were not expected to be adversely affected by the Transaction. The Trustees also noted, with respect to the Funds that currently had the benefit of voluntary fee limitations, that Macquarie Group had no present intention to cause DMC to alter any voluntary expense limitations or reimbursements currently in effect. On that basis, the Trustees concluded that the total expense ratios and proposed advisory fees for the Funds anticipated to result from the Transaction were acceptable. In approving each New Investment Advisory Agreement, the Board stated that it anticipated reviewing the continuance of the New Investment Advisory Agreement in advance of the expiration of the initial two-year period.

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® Income Funds (the “Fund”) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Fund, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLC (“PwC”) to serve as the independent registered public accounting firm for the Fund for the fiscal year ending July 31, 2010. During the fiscal years ended July 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Fund 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 Fund 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 Fund 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 Fund’s financial statements.

About the organization

Board of trustees

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 Franklin & Marshall College Lancaster, 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 Thomas F. Madison President and Chief Executive Officer MLM Partners, Inc. Minneapolis, MN	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

Affiliated officers

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 Senior 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

This semiannual report is for the information of Delaware Core Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Core Bond Fund 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.

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

The Fund files its 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 Fund’s Forms N-Q, as well as a description of the policies and procedures that the 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 Web site at www.sec.gov. In addition, a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities and the Fund’s Schedule of Investments are available without charge on the Fund’s Web site at www.delawareinvestments.com. The 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 the 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 Fund’s Web site at www.delawareinvestments.com; and (ii) on the SEC’s Web site at www.sec.gov.

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® Income Funds

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	June 23, 2010

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.

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	June 23, 2010


RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	June 23, 2010

Delaware Group Income Funds N-CSRCertified annual shareholder report (management investment company)