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

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number:		811-04304

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:		January 31, 2012

Item 1. Reports to Stockholders

Semiannual report

Delaware Corporate Bond Fund
Delaware Extended Duration Bond Fund

January 31, 2012

Fixed income mutual funds

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting www.delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

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

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 Corporate Bond Fund and Delaware Extended Duration Bond Fund at www.delawareinvestments.com.

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

Investments in Delaware Corporate Bond Fund and Delaware Extended Duration 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 Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Disclosure of Fund expenses	1
Security type/sector allocations	4
Statements of net assets	6
Statements of operations	44
Statements of changes in net assets	46
Financial highlights	50
Notes to financial statements	70
Other Fund information	96
About the organization	100

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

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

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

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

Disclosure of Fund expenses
For the six-month period from August 1, 2011 to January 31, 2012

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

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

Actual expenses

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

Hypothetical example for comparison purposes

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

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

Disclosure of Fund expenses

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

	Beginning		Ending					Expenses
	Account Value		Account Value		Annualized			Paid During Period
	8/1/11		1/31/12		Expense Ratio			8/1/11 to 1/31/12*
Actual Fund return
Class A	$	1,000.00	$	1,037.50		0.95	%	$	4.87
Class B		1,000.00		1,033.70		1.70	%		8.69
Class C		1,000.00		1,033.60		1.70	%		8.69
Class R		1,000.00		1,036.20		1.20	%		6.14
Institutional Class		1,000.00		1,038.80		0.70	%		3.59
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.36		0.95	%	$	4.82
Class B		1,000.00		1,016.59		1.70	%		8.62
Class C		1,000.00		1,016.59		1.70	%		8.62
Class R		1,000.00		1,019.10		1.20	%		6.09
Institutional Class		1,000.00		1,021.62		0.70	%		3.56

Delaware Extended Duration Bond Fund
Expense analysis of an investment of $1,000
	Beginning		Ending					Expenses
	Account Value		Account Value		Annualized			Paid During Period
	8/1/11		1/31/12		Expense Ratio			8/1/11 to 1/31/12*
Actual Fund return
Class A	$	1,000.00	$	1,113.50		0.95	%	$	5.05
Class B		1,000.00		1,109.60		1.70	%		9.01
Class C		1,000.00		1,109.40		1.70	%		9.01
Class R		1,000.00		1,112.00		1.20	%		6.37
Institutional Class		1,000.00		1,115.10		0.70	%		3.72
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.36		0.95	%	$	4.82
Class B		1,000.00		1,016.59		1.70	%		8.62
Class C		1,000.00		1,016.59		1.70	%		8.62
Class R		1,000.00		1,019.10		1.20	%		6.09
Institutional Class		1,000.00		1,021.62		0.70	%		3.56

Effective November 28, 2011, Delaware Management Company (DMC) has contractually agreed to waive that portion, if any, of its management fee and reimburse Delaware Corporate Bond Fund to the extent necessary to prevent that total annual operating expenses, (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings and liquidations) from exceeding 0.69% of the Fund’s average daily net assets through November 28, 2012. The Fund’s expense analysis would be as follows if this new limit was in effect for the entire period:

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

	Beginning			Ending					Expenses
	Account Value			Account Value			Annualized		Paid During Period
	8/1/11			1/31/12			Expense Ratio		8/1/11 to 1/31/12*
Actual Fund return
Class A		$	1,000.00		$	1,037.50		0.94%		$	4.81
Class B			1,000.00			1,033.70		1.69%			8.64
Class C			1,000.00			1,033.60		1.69%			8.64
Class R			1,000.00			1,036.20		1.19%			6.09
Institutional Class			1,000.00			1,038.80		0.69%			3.54
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.41		0.94%		$	4.77
Class B			1,000.00			1,016.64		1.69%			8.57
Class C			1,000.00			1,016.64		1.69%			8.57
Class R			1,000.00			1,019.15		1.19%			6.04
Institutional Class			1,000.00			1,021.67		0.69%			3.51

*“Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

Security type/sector allocations
Delaware Corporate Bond Fund	As of January 31, 2012

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

Security type/sector	Percentage of net assets
Commercial Mortgage-Backed Security	0.02	%
Convertible Bonds	1.29	%
Corporate Bonds	82.36	%
Banking	14.61	%
Basic Industry	7.60	%
Brokerage	1.86	%
Capital Goods	1.52	%
Communications	7.95	%
Consumer Cyclical	5.86	%
Consumer Non-Cyclical	6.87	%
Electric	9.38	%
Energy	6.90	%
Finance Companies	1.67	%
Insurance	5.07	%
Natural Gas	5.55	%
Real Estate	3.87	%
Technology	3.65	%
Municipal Bonds	4.46	%
Regional Bonds	0.63	%
Senior Secured Loans	2.06	%
Sovereign Bonds	3.89	%
U.S. Treasury Obligations	1.11	%
Common Stock	0.00	%
Preferred Stock	1.13	%
Options Purchased	0.04	%
Short-Term Investments	2.41	%
Securities Lending Collateral	0.09	%
Total Value of Securities	99.49	%
Obligation to Return Securities Lending Collateral	(0.11	%)
Receivables and Other Assets Net of Other Liabilities	0.62	%
Total Net Assets	100.00	%

Delaware Extended Duration Bond Fund

As of January 31, 2012

Security type/sector	Percentage of net assets
Commercial Mortgage-Backed Securities	0.02	%
Convertible Bonds	1.06	%
Corporate Bonds	82.92	%
Banking	11.04	%
Basic Industry	8.40	%
Brokerage	1.47	%
Capital Goods	1.34	%
Communications	9.17	%
Consumer Cyclical	5.19	%
Consumer Non-Cyclical	8.09	%
Electric	11.14	%
Energy	6.76	%
Finance Companies	2.43	%
Insurance	5.16	%
Natural Gas	7.31	%
Real Estate	2.20	%
Technology	1.68	%
Transportation	1.54	%
Municipal Bonds	5.48	%
Regional Bonds	0.39	%
Senior Secured Loans	1.88	%
Sovereign Bonds	3.25	%
U.S. Treasury Obligations	2.30	%
Preferred Stock	0.90	%
Options Purchased	0.03	%
Short-Term Investments	3.56	%
Securities Lending Collateral	0.34	%
Total Value of Securities	102.13	%
Obligation to Return Securities Lending Collateral	(0.36	%)
Other Liabilities Net of Receivables and Other Assets	(1.77	%)
Total Net Assets	100.00	%

Statements of net assets
Delaware Corporate Bond Fund	January 31, 2012 (Unaudited)

		Principal amount°		Value (U.S. $)
Commercial Mortgage-Backed Security – 0.02%
#	Merrill Lynch Mortgage Trust
	Series 2002-MW1 J 144A 5.695% 7/12/34	USD	295,000	$	240,138
Total Commercial Mortgage-Backed
	Security (cost $251,274)				240,138

Convertible Bonds – 1.29%
Φ	ArvinMeritor 4.00% exercise price $26.73,
	expiration date 2/15/27		3,555,000		2,564,044
#	Gaylord Entertainment 144A 3.75%
	exercise price $27.25,
	expiration date 9/29/14		840,000		1,024,800
	Health Care REIT 3.00% exercise price $51.13,
	expiration date 11/30/29		2,255,000		2,672,174
	Linear Technology 3.00% exercise price $43.39,
	expiration date 5/1/27		1,575,000		1,685,250
	Live Nation Entertainment 2.875%
	exercise price $27.14,
	expiration date 7/14/27		2,607,000		2,431,028
#	Owens-Brockway Glass Container 144A
	3.00% exercise price $47.47,
	expiration date 5/28/15		1,512,000		1,489,320
	PHH 4.00% exercise price $25.80,
	expiration date 9/1/14		1,817,000		1,648,928
Total Convertible Bonds (cost $13,159,009)					13,515,544

Corporate Bonds – 82.36%
Banking – 14.61%
	Abbey National Treasury Services 4.00% 4/27/16		9,875,000		9,591,192
	AgriBank 9.125% 7/15/19		4,517,000		5,900,656
	BAC Capital Trust VI 5.625% 3/8/35		2,475,000		2,081,703
	Bank of America 5.70% 1/24/22		5,500,000		5,707,933
•	BB&T Capital Trust IV 6.82% 6/12/57		9,400,000		9,529,249
•	Bear Stearns 4.947% 12/7/12	AUD	710,000		748,106
	Capital One Capital V 10.25% 8/15/39	USD	3,685,000		3,878,463
	Capital One Financial 4.75% 7/15/21		1,515,000		1,597,674
	Citigroup 5.875% 1/30/42		3,940,000		4,093,538
	City National 5.25% 9/15/20		3,025,000		3,039,596
@#	CoBank 144A 7.875% 4/16/18		2,060,000		2,477,426
	Export-Import Bank of Korea 5.00% 4/11/22		5,855,000		6,047,407

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Banking (continued)
•	Fifth Third Capital Trust IV 6.50% 4/15/37	USD	8,670,000	$	8,648,325
	Goldman Sachs Group 5.75% 1/24/22		3,155,000		3,276,480
•#	HBOS Capital Funding 144A 6.071% 6/29/49		5,280,000		3,854,400
#	HSBC Bank 144A 4.75% 1/19/21		8,860,000		9,404,846
	JPMorgan Chase
	4.50% 1/24/22		3,115,000		3,216,390
	•4.642% 6/21/12	AUD	1,800,000		1,905,099
	6.00% 10/1/17	USD	6,430,000		7,148,925
	JPMorgan Chase Capital XXV 6.80% 10/1/37		2,823,000		2,876,253
	KeyBank 6.95% 2/1/28		4,700,000		5,345,841
	KeyCorp 5.10% 3/24/21		2,310,000		2,515,953
	Korea Development Bank 8.00% 1/23/14		3,030,000		3,342,787
•	National City Bank 0.904% 6/7/17		2,030,000		1,834,024
	PNC Bank 6.875% 4/1/18		3,051,000		3,579,027
	PNC Funding
	5.25% 11/15/15		115,000		125,202
	5.625% 2/1/17		25,000		27,734
	Rabobank Utrecht 3.375% 1/19/17		7,325,000		7,547,577
•	Regions Financing Trust II 6.625% 5/15/47		5,700,000		5,130,000
	Santander Holdings USA 4.625% 4/19/16		1,900,000		1,857,195
	SunTrust Bank
	•0.796% 8/24/15		3,630,000		3,315,402
	3.50% 1/20/17		1,755,000		1,800,397
	SVB Financial Group 5.375% 9/15/20		3,785,000		3,902,138
•	USB Capital IX 3.50% 10/29/49		7,967,000		5,970,868
•	Wachovia 0.937% 10/15/16		2,730,000		2,436,304
	Wachovia Bank 5.60% 3/15/16		4,075,000		4,448,274
	Wells Fargo 2.625% 12/15/16		1,085,000		1,108,879
	Zions Bancorp
	5.50% 11/16/15		1,823,000		1,852,256
	7.75% 9/23/14		1,940,000		2,088,063
					153,251,582
Basic Industry – 7.60%
	Alcoa
	5.40% 4/15/21		1,365,000		1,435,707
	6.75% 7/15/18		2,427,000		2,805,168
	ArcelorMittal 9.85% 6/1/19		5,640,000		6,658,539
	Barrick North America Finance 4.40% 5/30/21		3,500,000		3,860,227
	CF Industries 7.125% 5/1/20		4,200,000		5,040,000
	Dow Chemical 8.55% 5/15/19		5,795,000		7,692,844

Statements of net assets
Delaware Corporate Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Basic Industry (continued)
	Ecolab 5.50% 12/8/41	USD	3,530,000	$	4,083,928
	Georgia-Pacific
	8.00% 1/15/24		9,790,000		12,740,020
	#144A 5.40% 11/1/20		1,285,000		1,455,167
	#144A 8.25% 5/1/16		450,000		498,959
	Hexion 8.875% 2/1/18		1,595,000		1,598,988
	International Paper
	4.75% 2/15/22		2,240,000		2,426,131
	7.30% 11/15/39		1,000,000		1,257,197
	9.375% 5/15/19		565,000		747,231
#	Kinross Gold 144A 5.125% 9/1/21		4,525,000		4,574,635
	Lubrizol
	5.50% 10/1/14		2,105,000		2,343,503
	8.875% 2/1/19		2,765,000		3,829,746
	Lyondell Chemical 11.00% 5/1/18		2,338,279		2,572,107
	Momentive Performance Materials
	11.50% 12/1/16		1,370,000		1,157,650
#	Newcrest Finance Property 144A 4.45% 11/15/21		2,195,000		2,224,622
#	Taminco Global Chemical 144A 9.75% 3/31/20		2,310,000		2,367,750
	Teck Resources
	6.25% 7/15/41		1,100,000		1,298,325
	9.75% 5/15/14		3,180,000		3,750,460
	Vale Overseas 4.375% 1/11/22		3,280,000		3,313,538
					79,732,442
Brokerage – 1.86%
	E Trade Financial 12.50% 11/30/17		1,930,000		2,243,625
	Jefferies Group
	6.25% 1/15/36		645,000		561,150
	6.45% 6/8/27		5,627,000		5,148,705
	Lazard Group 6.85% 6/15/17		8,495,000		9,186,272
	Nuveen Investments
	10.50% 11/15/15		965,000		1,010,838
	#144A 10.50% 11/15/15		1,280,000		1,328,000
					19,478,590
Capital Goods – 1.52%
#	Meccanica Holdings USA 144A 6.25% 7/15/19		6,376,000		5,436,076
#	Odebrecht Finance 144A 6.00% 4/5/23		3,439,000		3,479,236
	RSC Equipment Rental 10.25% 11/15/19		935,000		1,033,175

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Capital Goods (continued)
	Stanley Black & Decker 3.40% 12/1/21	USD	2,000,000	$	2,073,068
#	Votorantim Cimentos 144A 7.25% 4/5/41		3,840,000		3,916,800
					15,938,355
Communications – 7.95%
	America Movil 6.125% 3/30/40		1,300,000		1,595,836
	American Tower 5.90% 11/1/21		2,335,000		2,517,833
#	Brasil Telecom 144A 9.75% 9/15/16	BRL	3,332,000		1,903,565
	Cablevision Systems
	8.00% 4/15/20	USD	2,220,000		2,442,000
	8.625% 9/15/17		570,000		638,400
#	Clearwire Communications 144A
	12.00% 12/1/15		2,830,000		2,681,425
	Cricket Communications 7.75% 10/15/20		1,040,000		993,200
#	Crown Castle Towers 144A 4.883% 8/15/20		7,360,000		7,677,319
#	Digicel Group 144A
	8.875% 1/15/15		1,500,000		1,518,750
	10.50% 4/15/18		775,000		823,438
	Intelsat Bermuda 11.25% 2/4/17		1,980,000		2,004,750
#	Nara Cable Funding 144A 8.875% 12/1/18		3,200,000		3,056,000
	PAETEC Holding 9.50% 7/15/15		850,000		896,750
	Qwest
	6.75% 12/1/21		7,170,000		7,972,065
	8.375% 5/1/16		2,007,000		2,347,034
	Qwest Communications International
	7.125% 4/1/18		2,000,000		2,150,000
	Sprint Capital 6.875% 11/15/28		990,000		738,788
	Telefonica Emisiones
	5.462% 2/16/21		2,660,000		2,647,392
	6.421% 6/20/16		3,310,000		3,548,366
	Time Warner Cable 8.25% 4/1/19		4,481,000		5,782,739
#	VimpelCom Holdings 144A 7.504% 3/1/22		2,940,000		2,778,300
	Virgin Media Secured Finance 6.50% 1/15/18		9,535,000		10,297,799
#	Vivendi 144A 6.625% 4/4/18		5,377,000		6,052,082
#	Wind Acquisition Finance 144A
	11.75% 7/15/17		4,555,000		4,532,225
#	WPP Finance 2010 144A
	4.75% 11/21/21		4,360,000		4,487,508
#	XM Satellite Radio 144A 13.00% 8/1/13		1,100,000		1,259,500
					83,343,064

Statements of net assets
Delaware Corporate Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Consumer Cyclical – 5.86%
	Brinker International 5.75% 6/1/14	USD	3,000,000	$	3,161,646
#	Chrysler Group 144A 8.25% 6/15/21		2,475,000		2,376,000
#	Delphi 144A 6.125% 5/15/21		980,000		1,033,900
	Ford Motor 7.45% 7/16/31		1,360,000		1,683,000
	Ford Motor Credit 5.00% 5/15/18		4,130,000		4,283,739
#	FUEL Trust 144A
	3.984% 6/15/16		850,000		866,407
	4.207% 4/15/16		740,000		760,646
	Harrah’s Operating 10.00% 12/15/18		1,265,000		983,538
	Historic TW 6.875% 6/15/18		4,035,000		4,899,397
	Host Hotels & Resorts
	5.875% 6/15/19		2,055,000		2,193,713
	#144A 6.00% 10/1/21		1,850,000		1,984,125
#	Hyundai Capital America 144A 4.00% 6/8/17		2,930,000		2,974,170
	Johnson Controls 3.75% 12/1/21		3,930,000		4,090,926
	Macy’s Retail Holdings
	3.875% 1/15/22		2,810,000		2,884,656
	5.125% 1/15/42		3,655,000		3,820,418
	*7.875% 7/15/15		1,799,000		2,115,183
	MGM Resorts International 11.375% 3/1/18		2,180,000		2,512,450
	OSI Restaurant Partners 10.00% 6/15/15		1,460,000		1,518,400
*	Quiksilver 6.875% 4/15/15		1,105,000		1,069,088
	Ryland Group 8.40% 5/15/17		358,000		387,535
	Target 2.90% 1/15/22		4,495,000		4,553,682
	Western Union 3.65% 8/22/18		2,400,000		2,463,926
	Wyndham Worldwide
	5.625% 3/1/21		5,930,000		6,273,364
	5.75% 2/1/18		2,460,000		2,619,192
					61,509,101
Consumer Non-Cyclical – 6.87%
#	Aristotle Holding 144A
	3.50% 11/15/16		585,000		602,246
	4.75% 11/15/21		3,060,000		3,244,411
	Boston Scientific 6.00% 1/15/20		2,385,000		2,719,413
	General Mills 3.15% 12/15/21		2,000,000		2,040,148
#	Grupo Bimbo 144A 4.50% 1/25/22		2,169,000		2,219,186
	HCA Holdings 7.75% 5/15/21		1,155,000		1,215,638
#	inVentiv Health 144A 10.00% 8/15/18		1,120,000		1,019,200
#	JBS USA 144A 8.25% 2/1/20		2,500,000		2,525,000

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Consumer Non-Cyclical (continued)
	Mattel 5.45% 11/1/41	USD	5,225,000	$	5,538,082
#	Mylan 144A 7.625% 7/15/17		920,000		1,015,450
	PerkinElmer 5.00% 11/15/21		1,490,000		1,567,337
#	Pernod-Ricard 144A 5.50% 1/15/42		10,855,000		11,457,127
#	SABMiller Holdings 144A
	3.75% 1/15/22		4,820,000		5,028,026
	4.95% 1/15/42		5,100,000		5,444,775
	Safeway 4.75% 12/1/21		4,300,000		4,496,028
	Sara Lee 4.10% 9/15/20		1,771,000		1,803,275
	Smucker (J.M.) 3.50% 10/15/21		3,000,000		3,125,601
	Teva Pharmaceutical Finance IV 3.65% 11/10/21		4,100,000		4,345,861
	Tyson Foods 10.50% 3/1/14		2,586,000		3,012,690
#	Woolworths 144A
	3.15% 4/12/16		1,775,000		1,846,763
	4.55% 4/12/21		7,155,000		7,782,465
					72,048,722
Electric – 9.38%
	Ameren Illinois 9.75% 11/15/18		7,971,000		10,621,359
#	American Transmission Systems 144A
	5.25% 1/15/22		2,110,000		2,384,068
	Baltimore Gas & Electric 3.50% 11/15/21		4,350,000		4,484,967
	CenterPoint Energy 5.95% 2/1/17		5,155,000		5,884,757
#	Centrais Eletricas Brasileiras 144A
	5.75% 10/27/21		2,990,000		3,160,430
	ComEd Financing III 6.35% 3/15/33		6,500,000		6,565,754
•	FPL Group Capital
	6.35% 10/1/66		4,325,000		4,372,610
	6.65% 6/15/67		5,105,000		5,174,586
	Ipalco Enterprises 5.00% 5/1/18		2,450,000		2,428,563
	LG&E & KU Energy
	3.75% 11/15/20		1,630,000		1,644,654
	#144A 4.375% 10/1/21		3,850,000		3,955,548
	National Rural Utilities Cooperative
	Finance 3.05% 2/15/22		3,090,000		3,135,735
	Pacific Gas & Electric 4.50% 12/15/41		2,750,000		2,872,658
	Pennsylvania Electric 5.20% 4/1/20		4,281,000		4,688,829
•	PPL Capital Funding 6.70% 3/30/67		7,315,000		7,231,316
•	Puget Sound Energy 6.974% 6/1/67		8,395,000		8,444,144
	SCANA 4.125% 2/1/22		3,870,000		3,900,256

Statements of net assets
Delaware Corporate Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Electric (continued)
	South Carolina Electric & Gas 5.45% 2/1/41	USD	1,000,000	$	1,201,775
	Virginia Electric & Power 2.95% 1/15/22		3,935,000		4,017,182
•	Wisconsin Energy 6.25% 5/15/67		9,859,000		10,092,086
•	WPS Resources 6.11% 12/1/66		2,140,000		2,102,036
					98,363,313
Energy – 6.90%
	#BG Energy Capital 144A
	2.875% 10/15/16		2,000,000		2,085,780
	4.00% 10/15/21		2,550,000		2,738,904
	Chesapeake Energy 7.25% 12/15/18		459,000		494,573
	Encana 3.90% 11/15/21		2,520,000		2,471,823
#	ENI 144A 4.15% 10/1/20		4,885,000		4,927,636
	Ensco 4.70% 3/15/21		2,250,000		2,415,656
#	Hercules Offshore 144A
	10.50% 10/15/17		775,000		778,875
#	Korea National Oil 144A 4.00% 10/27/16		3,540,000		3,671,444
	Laredo Petroleum 9.50% 2/15/19		2,825,000		3,100,438
	Noble Energy 8.25% 3/1/19		5,144,000		6,523,770
	Petrobras International Finance
	5.375% 1/27/21		3,560,000		3,748,488
	Petrohawk Energy 7.25% 8/15/18		8,475,000		9,703,874
#	Petroleos Mexicanos 144A 6.50% 6/2/41		4,446,000		4,935,060
	Pride International 6.875% 8/15/20		2,500,000		3,023,503
	Transocean
	5.05% 12/15/16		5,045,000		5,411,444
	6.375% 12/15/21		2,065,000		2,346,042
	Weatherford Bermuda 9.625% 3/1/19		2,920,000		3,917,411
	Williams
	7.75% 6/15/31		2,483,000		3,013,706
	8.75% 3/15/32		186,000		246,465
#	Woodside Finance 144A
	4.60% 5/10/21		250,000		258,978
	8.75% 3/1/19		5,105,000		6,500,186
					72,314,056
Finance Companies – 1.67%
	FTI Consulting 6.75% 10/1/20		975,000		1,040,813
	General Electric Capital
	4.65% 10/17/21		2,000,000		2,116,980
	6.00% 8/7/19		2,039,000		2,364,514

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Finance Companies (continued)
•#	ILFC E-Capital Trust I 144A 4.34% 12/21/65	USD	2,400,000	$	1,528,248
•#	ILFC E-Capital Trust II 144A 6.25% 12/21/65		3,065,000		2,222,125
#	IPIC GMTN 144A 5.50% 3/1/22		5,429,000		5,524,007
	PHH 9.25% 3/1/16		2,810,000		2,711,650
					17,508,337
Insurance – 5.07%
	American International Group
	4.875% 9/15/16		485,000		492,765
	•8.175% 5/15/58		2,675,000		2,608,125
	8.25% 8/15/18		4,545,000		5,247,071
•	Chubb 6.375% 3/29/67		6,606,000		6,771,150
	Coventry Health Care 5.45% 6/15/21		6,645,000		7,446,919
#	Highmark 144A
	4.75% 5/15/21		5,195,000		5,388,592
	6.125% 5/15/41		920,000		998,149
•	ING Groep 5.775% 12/29/49		4,765,000		3,943,038
*#	Liberty Mutual 144A 7.00% 3/15/37		2,775,000		2,455,875
#	MetLife Capital Trust X 144A 9.25% 4/8/38		6,730,000		7,991,875
	Prudential Financial
	4.50% 11/15/20		1,365,000		1,442,092
	4.50% 11/16/21		640,000		676,349
w=‡@#	Twin Reefs Pass Through Trust 144A
	0.00% 12/31/49		3,100,000		0
•#	ZFS Finance USA Trust II 144A 6.45% 12/15/65		3,870,000		3,676,500
•#	ZFS Finance USA Trust IV 144A 5.875% 5/9/32		4,060,000		3,999,100
					53,137,600
Natural Gas – 5.55%
	AmeriGas Finance
	6.75% 5/20/20		475,000		476,188
	7.00% 5/20/22		470,000		472,350
	El Paso Pipeline Partners Operating 6.50% 4/1/20		1,705,000		1,912,817
•	Enbridge Energy Partners 8.05% 10/1/37		6,970,000		7,516,309
	Energy Transfer Partners
	4.65% 6/1/21		3,670,000		3,753,757
	9.70% 3/15/19		6,041,000		7,648,879
	Enterprise Products Operating
	•7.034% 1/15/68		7,550,000		7,993,819
	9.75% 1/31/14		1,999,000		2,303,288

Statements of net assets
Delaware Corporate Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Natural Gas (continued)
	Kinder Morgan Energy Partners
	6.95% 1/15/38	USD	2,250,000	$	2,599,857
	9.00% 2/1/19		2,805,000		3,568,989
	Plains All American Pipeline 8.75% 5/1/19		1,985,000		2,561,295
•	TransCanada PipeLines 6.35% 5/15/67		8,652,000		8,755,962
	Williams Partners 7.25% 2/1/17		7,170,000		8,671,312
					58,234,822
Real Estate – 3.87%
	Brandywine Operating Partnership
	4.95% 4/15/18		2,850,000		2,860,964
	Developers Diversified Realty
	7.50% 4/1/17		2,500,000		2,818,983
	7.875% 9/1/20		1,125,000		1,332,857
	9.625% 3/15/16		1,415,000		1,662,196
	Digital Realty Trust
	5.25% 3/15/21		5,535,000		5,663,905
	5.875% 2/1/20		1,680,000		1,812,727
	ERP Operating 4.625% 12/15/21		1,920,000		2,049,936
	Health Care REIT 5.25% 1/15/22		2,115,000		2,237,748
	Regency Centers
	4.80% 4/15/21		2,935,000		3,072,857
	5.875% 6/15/17		2,325,000		2,606,702
	UDR 4.625% 1/10/22		4,670,000		4,891,461
	Vornado Realty 5.00% 1/15/22		4,600,000		4,827,833
#	WEA Finance 144A 4.625% 5/10/21		4,475,000		4,732,603
					40,570,772
Technology – 3.65%
	Applied Materials 5.85% 6/15/41		1,500,000		1,758,428
	Broadcom 2.70% 11/1/18		3,455,000		3,554,794
	CDW 12.535% 10/12/17		2,780,000		3,023,250
*	First Data 11.25% 3/31/16		1,120,000		977,200
	GXS Worldwide 9.75% 6/15/15		1,610,000		1,585,850
	Hewlett-Packard
	4.375% 9/15/21		1,705,000		1,797,501
	4.65% 12/9/21		3,500,000		3,772,528
	National Semiconductor 6.60% 6/15/17		6,644,000		8,140,095
#	Seagate Technology International 144A
	10.00% 5/1/14		3,948,000		4,530,330

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Technology (continued)
	Tyco Electronics Group 3.50% 2/3/22	USD	3,920,000	$	3,904,594
	Xerox
	4.50% 5/15/21		2,885,000		2,966,683
	6.35% 5/15/18		1,940,000		2,235,608
					38,246,861
Total Corporate Bonds (cost $824,769,898)					863,677,617

Municipal Bonds – 4.46%
	California State Various Purposes
	5.00% 10/1/41		5,000,000		5,424,450
	Los Angeles, California Department of
	Water & Power Revenue Taxable Build
	America Bond 6.574% 7/1/45		5,365,000		7,255,250
	Massachusetts Development Finance
	Agency Revenue (Harvard University)
	Series B-1 5.00% 10/15/40	10,010,000			11,545,834
	Metropolitan Transportation Authority,
	New York Taxable Build America
	Bond (Dedicated Tax Fund) Series C-1
	6.687% 11/15/40		4,500,000		5,783,400
	New Jersey Transportation Trust Fund
	Authority Series B 5.00% 6/15/42		5,000,000		5,454,750
	San Francisco Bay Area Toll Authority,
	California Toll Bridge Revenue
	Taxable Build America Bond Series S3
	6.907% 10/1/50		3,575,000		4,901,325
	Triborough Bridge & Tunnel Authority,
	New York Revenue Taxable
	Build America Bond Series A-2
	5.45% 11/15/32		5,560,000		6,439,258
Total Municipal Bonds (cost $39,179,977)					46,804,267

ΔRegional Bonds – 0.63%
	Australia – 0.38%
	New South Wales Treasury 6.00% 4/1/19	AUD	1,105,000		1,288,488
	Queensland Treasury 6.25% 6/14/19	AUD	2,300,000		2,684,609
					3,973,097

Statements of net assets
Delaware Corporate Bond Fund

		Principal amount°		Value (U.S. $)
ΔRegional Bonds (continued)
Canada – 0.25%
	Ontario Province 3.15% 6/2/22	CAD	993,000	$	1,014,784
	Quebec Province 4.25% 12/1/21	CAD	1,429,000		1,593,495
					2,608,279
Total Regional Bonds (cost $6,251,717)					6,581,376

«Senior Secured Loans – 2.06%
	Alliance HealthCare Services 7.25% 6/1/16	USD	1,105,956		977,389
	Burlington Coat Factory Warehouse
	Tranche B 6.25% 2/10/17		1,636,629		1,635,876
	Chrysler Group 6.00% 4/28/17		2,985,000		2,929,464
	Immucor Tranche B 7.25% 7/2/18		1,780,538		1,796,562
	Kinetic Concepts Tranche B 7.00% 1/12/18		3,075,000		3,131,057
	MGM Resorts International Tranche E
	7.00% 2/21/14		2,705,000		2,710,072
	Nuveen Investments 2nd Lien 12.50% 7/9/15		1,335,000		1,395,743
	Reynolds Group Holdings 6.50% 7/7/18		2,491,657		2,504,116
@	United Rentals
	Secured Bridge Loan 7.37% 12/15/12		1,341,364		1,341,364
	Unsecured Bridge Loan 8.88% 12/15/12		3,198,636		3,198,636
Total Senior Secured Loans (cost $21,466,921)					21,620,279

ΔSovereign Bonds – 3.89%
Australia – 0.34%
	Australian Government Inflation-Linked
	Bond 4.00% 8/20/15	AUD	1,853,000		3,557,957
					3,557,957
Brazil – 0.24%
	Brazilian Government International Bond
	5.625% 1/7/41	USD	2,143,000		2,475,165
					2,475,165
Canada – 0.13%
	Canadian Government Bond 3.75% 6/1/19	CAD	1,173,000		1,339,701
					1,339,701
Chile – 0.17%
	Chile Government International Bond
	5.50% 8/5/20	CLP	829,000,000		1,764,189
					1,764,189

		Principal amount°		Value (U.S. $)
ΔSovereign Bonds (continued)
Colombia – 0.57%
	Colombia Government International Bond
	6.125% 1/18/41	USD	5,001,000	$	6,026,205
					6,026,205
Germany – 0.04%
	Deutschland Republic 2.00% 1/4/22	EUR	331,000		440,599
					440,599
Indonesia – 0.73%
	Indonesia Treasury Bond 11.00% 11/15/20	IDR	17,218,000,000		2,663,062
#	Republic of Indonesia 144A
	5.25% 1/17/42	USD	4,788,000		4,967,549
					7,630,611
Peru – 0.05%
	Peruvian Government International Bond
	5.625% 11/18/50		500,000		540,500
					540,500
Philippines – 0.25%
	Philippine Government International
	Bond 5.00% 1/13/37		2,490,000		2,570,925
					2,570,925
Poland – 0.40%
	Poland Government International Bond
	5.00% 3/23/22		4,149,000		4,227,831
					4,227,831
Republic of Korea – 0.34%
	Korea Treasury Inflation-Linked Bond
	2.75% 6/10/20	KRW	3,525,686,835		3,591,669
					3,591,669
Romania – 0.39%
#	Romanian Government International
	Bond 144A 6.75% 2/7/22	USD	4,100,000		4,063,387
					4,063,387
Russia – 0.24%
	Russian-Eurobond 7.50% 3/31/30		2,145,950		2,548,316
					2,548,316

Statements of net assets
Delaware Corporate Bond Fund

		Principal amount°		Value (U.S. $)
ΔSovereign Bonds (continued)
Uruguay – 0.00%
	Uruguay Government International Bond
	PIK 7.875% 1/15/33	USD	1	$	1
					1
Total Sovereign Bonds (cost $38,747,418)					40,777,056

U.S. Treasury Obligations – 1.11%
	U.S. Treasury Notes
	1.375% 12/31/18		3,460,000		3,495,953
	2.00% 11/15/21		8,040,000		8,181,954
Total U.S. Treasury Obligations
	(cost $11,511,637)				11,677,907

		Number of shares
Common Stock – 0.00%
	Masco		251		3,030
†	United Continental Holdings		40		924
Total Common Stock (cost $1,783)					3,954

Preferred Stock – 1.13%
	Alabama Power 5.625%		118,065		3,021,732
	Ally Financial
	#144A 7.00%		1,500		1,207,922
	∏•8.50%		100,000		2,091,000
	•GMAC Capital Trust I 8.125%		50,000		1,109,500
	•PNC Financial Services Group 8.25%		3,112,000		3,244,288
	•US Bancorp 6.50%		44,000		1,122,000
Total Preferred Stock (cost $11,780,133)					11,796,442

		Number of contracts
Options Purchased – 0.04%
Put Swaptions – 0.04%
	10-Yr IRS, strike price 5.23%,
	expires 1/9/14 (CITI)		10,000,000		48,511
	30-Yr IRS, strike price 4.813%,
	expires 1/9/14 (BAML)		20,000,000		362,425
Total Options Purchased (cost $2,456,000)					410,936

		Principal amount°		Value (U.S. $)
Short-Term Investments – 2.41%
≠Discount Notes – 0.14%
	Fannie Mae 0.01% 3/7/12	USD	849,250	$	849,233
	Federal Home Loan Bank 0.02% 3/21/12		561,805		561,790
					1,411,023
Repurchase Agreement – 2.19%
	BNP Paribas 0.18%, dated 1/31/12, to
	be repurchased on 2/1/12, repurchase
	price $23,008,115 (collateralized by
	U.S. government obligations
	0.00%-4.625% 5/15/12-2/15/19;
	market value $23,467,908)		23,008,001		23,008,001
					23,008,001
≠U.S. Treasury Obligation – 0.08%
	U.S. Treasury Bill 0.001% 2/23/12		849,250		849,229
					849,229
Total Short-Term Investments
	(cost $25,268,280)				25,268,253

Total Value of Securities Before Securities
	Lending Collateral – 99.40%
	(cost $994,844,047)				1,042,373,769

		Number of shares
**Securities Lending Collateral – 0.09%
Investment Companies
	BNY Mellon SL DBT II Liquidating Fund		70,568		68,557
	Delaware Investments Collateral Fund No.1		820,855		820,855
@†	Mellon GSL Reinvestment Trust II		230,639		0
Total Securities Lending Collateral
	(cost $1,122,062)				889,412

Total Value of Securities – 99.49%
	(cost $995,966,109)				1,043,263,181	©
**Obligation to Return Securities
	Lending Collateral – (0.11%)				(1,122,062	)
***Receivables and Other Assets
	Net of Other Liabilities – 0.62%				6,485,185	«
Net Assets Applicable to 175,451,341
	Shares Outstanding – 100.00%			$	1,048,626,304

Statements of net assets
Delaware Corporate Bond Fund


Net Asset Value – Delaware Corporate Bond Fund
Class A ($485,856,582 / 81,293,247 Shares)			$5.98
Net Asset Value – Delaware Corporate Bond Fund
Class B ($5,611,995 / 939,261 Shares)			$5.97
Net Asset Value – Delaware Corporate Bond Fund
Class C ($174,421,430 / 29,179,822 Shares)			$5.98
Net Asset Value – Delaware Corporate Bond Fund
Class R ($14,065,603 / 2,351,533 Shares)			$5.98
Net Asset Value – Delaware Corporate Bond Fund
Institutional Class ($368,670,694 / 61,687,478 Shares)			$5.98

Components of Net Assets at January 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	999,923,049
Distributions in excess of net investment income		(308,286		)
Accumulated net realized gain		3,975,785
Net unrealized appreciation of investments and derivatives		45,035,756
Total net assets	$	1,048,626,304

°	Principal amount shown is stated in the currency in which each security is denominated.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At January 31, 2012, the aggregate value of Rule 144A securities was $221,405,355, which represented 21.11% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
Φ	Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at January 31, 2012.
•	Variable rate security. The rate shown is the rate as of January 31, 2012. Interest rates reset periodically.
@	Illiquid security. At January 31, 2012, the aggregate value of illiquid securities was $7,017,427, which represented 0.67% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
*	Fully or partially on loan.
w	Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes.
=	Security is being fair valued in accordance with the Fund’s fair valuation policy. At January 31, 2012, the aggregate value of fair valued securities was $0, which represented 0.00% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”


‡	Non income producing security. Security is currently in default.
Δ	Securities have been classified by country of origin.
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at January 31, 2012.
†	Non income producing security.
∏	Restricted security. This investment is in a security not registered under the Securities Act of 1933, as amended, and has certain restrictions on resale which may limit its liquidity. At January 31, 2012, the aggregate value of the restricted security was $2,091,000, which represented 0.20% of the Fund’s net assets.
≠	The rate shown is the effective yield at the time of purchase.
**	See Note 9 in “Notes to financial statements” for additional information on securities lending collateral.
©	Includes $1,084,683 of securities loaned.
***	Includes $1,407,000 collateral for futures contracts.
«	Includes foreign currency valued at $477,901 with a cost of $463,495.

Net Asset Value and Offering Price Per Share –
Delaware Corporate Bond Fund
Net asset value Class A (A)	$	5.98
Sales charge (4.50% of offering price) (B)		0.28
Offering price	$	6.26

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

Statements of net assets
Delaware Corporate Bond Fund

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

Foreign Currency Exchange Contracts

								Unrealized
	Contracts to							Appreciation
Counterparty	Receive (Deliver)			In Exchange For			Settlement Date	(Depreciation)
BAML	EUR	(1,550,563	)	USD	1,975,324		2/17/12	$	(54,440	)
BCLY	AUD	(8,250,727	)	USD	8,395,610		2/17/12		(372,848	)
BCLY	EUR	(4,869,619	)	USD	6,201,313		2/17/12		(173,261	)
GSC	GBP	1,531,701		USD	(2,365,330	)	2/17/12		51,771
HSBC	AUD	1,331,430		USD	(1,356,394	)	2/17/12		58,583
HSBC	EUR	(1,557,611	)	USD	1,983,065		2/17/12		(55,926	)
JPMC	EUR	(1,180,000	)	USD	1,502,258		2/17/12		(42,421	)
MSC	EUR	(267,298	)	USD	340,172		2/17/12		(9,735	)
								$	(598,277	)

Futures Contracts

								Unrealized
	Notional Cost							Appreciation
Contracts to Buy (Sell)	(Proceeds)			Notional Value			Expiration Date	(Depreciation)
(1,008) U.S. Treasury 10 yr Note	$	(130,950,111	)	$	(133,308,000	)	3/30/12	$	(2,357,889	)
749 U.S. Treasury Long Bond		107,601,660			108,932,688		3/30/12		1,331,028
	$	(23,348,451	)					$	(1,026,861	)

Swap Contracts
CDS Contracts

				Annual		Unrealized
	Swap			Protection	Termination	Appreciation
Counterparty	Referenced Obligation	Notional Value		Payments	Date	(Depreciation)
	Protection Purchased:
BAML	ITRAXX Europe Subordinate
	Financials 16.1 5 yr CDS	EUR	2,400,000	5.00%	12/20/16	$	(190,026	)
JPMC	Finmeccanica 5 yr CDS	USD	3,190,000	5.00%	3/20/17		(71,216	)
JPMC	ITRAXX Europe Crossover
	Financials 16.1 5 yr CDS	EUR	1,925,000	5.00%	12/20/16		(62,579	)
JPMC	ITRAXX Europe Subordinate
	Financials 16.1 5 yr CDS	EUR	1,300,000	5.00%	12/20/16		(130,769	)
JPMC	MeadWestvaco 5 yr CDS	USD	3,900,000	1.00%	12/20/16		(134,728	)
JPMC	Republic of France 5 yr CDS		3,049,000	0.25%	9/20/16		15,106
MSC	Japan 5 yr CDS		2,500,000	1.00%	9/20/16		15,864
MSC	People’s Republic of China 5 yr CDS		4,414,000	1.00%	12/20/16		(141,922	)
MSC	Republic of France 5 yr CDS		2,204,000	0.25%	12/20/16		(18,400	)
						$	(718,670	)
	Protection Sold / Moody’s Rating:
JPMC	Georgia Pacific 5 yr CDS / Baa	USD	3,900,000	1.00%	12/20/16	$	125,074
JPMC	Tyson Foods CDS / Ba		2,500,000	1.00%	3/20/16		66,809
						$	191,883
Total						$	(526,787	)

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

Statements of net assets
Delaware Corporate Bond Fund

Summary of abbreviations:
AUD — Australian Dollar
BAML — Bank of America Merrill Lynch
BCLY — Barclays Bank
BRL — Brazilian Real
CAD — Canadian Dollar
CDS — Credit Default Swap
CITI — Citigroup Global Markets
CLP — Chilean Peso
EUR — European Monetary Unit
GBP — British Pound Sterling
GSC — Goldman Sachs Capital
HSBC — Hong Kong Shanghai Bank
IDR — Indonesia Rupiah
IRS — Interest Rate Swap
JPMC — JPMorgan Chase Bank
KRW — South Korean Won
MSC — Morgan Stanley Capital
PIK — Pay-in-Kind
REIT — Real Estate Investment Trust
USD — United States Dollar
yr — Year

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

Delaware Extended Duration Bond Fund

January 31, 2012 (Unaudited)

		Principal amount°		Value (U.S. $)
Commercial Mortgage-Backed Securities – 0.02%
	Merrill Lynch Mortgage Trust
	#Series 2002-MW1 J 144A 5.695% 7/12/34	USD	110,000	$	89,543
	Series 2005-CIP1 A2 4.96% 7/12/38		21,658		21,931
Total Commercial Mortgage-Backed Securities
	(cost $107,518)				111,474

Convertible Bonds – 1.06%
Φ	ArvinMeritor 4.00% exercise price $26.73,
	expiration date 2/15/27		2,472,000		1,782,930
#	Gaylord Entertainment 144A 3.75%
	exercise price $27.25, expiration date 9/29/14		320,000		390,400
	Health Care REIT 3.00% exercise price $51.13,
	expiration date 11/30/29		885,000		1,048,725
	Linear Technology 3.00% exercise price $43.39,
	expiration date 5/1/27		825,000		882,750
	Live Nation Entertainment 2.875%
	exercise price $27.14, expiration date 7/14/27		1,180,000		1,100,350
#	Owens-Brockway Glass Container 144A 3.00%
	exercise price $47.47, expiration date 5/28/15		806,000		793,910
	PHH 4.00% exercise price $25.80,
	expiration date 9/1/14		1,183,000		1,073,573
Total Convertible Bonds (cost $6,860,006)					7,072,638

Corporate Bonds – 82.92%
Banking – 11.04%
	Abbey National Treasury Services 4.00% 4/27/16		7,800,000		7,575,827
	AgriBank 9.125% 7/15/19		1,210,000		1,580,650
	BAC Capital Trust VI 5.625% 3/8/35		1,700,000		1,429,856
	Bank of America 5.70% 1/24/22		2,510,000		2,604,893
	BB&T Capital Trust II 6.75% 6/7/36		2,403,000		2,523,751
•	BB&T Capital Trust IV 6.82% 6/12/57		630,000		638,663
•	Bear Stearns 4.947% 12/7/12	AUD	1,410,000		1,485,676
	Capital One Capital V 10.25% 8/15/39	USD	3,080,000		3,241,700
	Citigroup 5.875% 1/30/42		2,555,000		2,654,566

Statements of net assets
Delaware Extended Duration Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Banking (continued)
	City National 5.25% 9/15/20	USD	1,155,000	$	1,160,573
@#	CoBank 144A 7.875% 4/16/18		935,000		1,124,463
	Export-Import Bank of Korea 5.00% 4/11/22		4,030,000		4,162,434
•	Fifth Third Capital Trust IV 6.50% 4/15/37		3,515,000		3,506,213
	Goldman Sachs Group 5.75% 1/24/22		2,045,000		2,123,741
•#	HBOS Capital Funding 144A 6.071% 6/29/49		3,320,000		2,423,600
#	HSBC Bank 144A 4.75% 1/19/21		800,000		849,196
	HSBC Holdings 6.10% 1/14/42		2,025,000		2,352,724
	JPMorgan Chase 4.50% 1/24/22		2,680,000		2,767,231
	JPMorgan Chase Capital XXV 6.80% 10/1/37		4,395,000		4,477,906
	KeyBank 6.95% 2/1/28		2,467,000		2,805,998
•#	PNC Preferred Funding Trust II 144A
	6.113% 3/29/49		3,900,000		2,944,500
	Rabobank Utrecht
	3.375% 1/19/17		2,360,000		2,431,711
	5.25% 5/24/41		2,465,000		2,714,939
•	Regions Financing Trust II 6.625% 5/15/47		3,650,000		3,285,000
	Santander Holdings USA 4.625% 4/19/16		875,000		855,287
	SVB Financial Group 5.375% 9/15/20		1,705,000		1,757,766
•	USB Capital IX 3.50% 10/29/49		4,325,000		3,241,371
	Wachovia Bank 6.60% 1/15/38		2,910,000		3,470,178
	Zions Bancorp
	5.50% 11/16/15		900,000		914,443
	7.75% 9/23/14		750,000		807,241
					73,912,097
Basic Industry – 8.40%
	Alcoa 6.75% 7/15/18		1,693,000		1,956,798
	ArcelorMittal 7.00% 10/15/39		4,880,000		4,906,123
	Barrick North America Finance
	5.70% 5/30/41		2,555,000		3,082,242
	#144A 5.70% 5/30/41		30,000		36,191
	CF Industries 7.125% 5/1/20		2,630,000		3,156,000
	Dow Chemical
	5.25% 11/15/41		1,940,000		2,116,804
	8.55% 5/15/19		1,375,000		1,825,308
	Ecolab 5.50% 12/8/41		5,000,000		5,784,600

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Basic Industry (continued)
	Georgia-Pacific
	8.00% 1/15/24	USD	6,280,000	$	8,172,353
	#144A 5.40% 11/1/20		480,000		543,564
	#144A 8.25% 5/1/16		185,000		205,128
	Hexion 8.875% 2/1/18		705,000		706,763
	International Paper
	6.00% 11/15/41		4,490,000		5,134,405
	7.30% 11/15/39		1,000,000		1,257,197
	9.375% 5/15/19		2,385,000		3,154,241
#	Kinross Gold 144A 6.875% 9/1/41		2,235,000		2,379,613
	Lyondell Chemical 11.00% 5/1/18		1,250,243		1,375,267
	Momentive Performance Materials 11.50% 12/1/16		655,000		553,475
	Mosaic 4.875% 11/15/41		2,820,000		2,942,439
#	Newcrest Finance 144A 4.45% 11/15/21		1,545,000		1,565,850
	Steel Dynamics 7.75% 4/15/16		420,000		441,000
	Teck Resources 6.25% 7/15/41		4,205,000		4,963,140
					56,258,501
Brokerage – 1.47%
	E Trade Financial 12.50% 11/30/17		1,065,000		1,238,063
	Jefferies Group
	6.25% 1/15/36		680,000		591,600
	6.45% 6/8/27		2,640,000		2,415,600
	Lazard Group 6.85% 6/15/17		3,271,000		3,537,174
	Nuveen Investments
	10.50% 11/15/15		1,320,000		1,382,700
	#144A 10.50% 11/15/15		620,000		643,250
					9,808,387
Capital Goods – 1.34%
	Ball
	7.125% 9/1/16		188,000		205,860
	7.375% 9/1/19		282,000		315,840
	Clean Harbors 7.625% 8/15/16		468,000		498,420
#	Meccanica Holdings USA 144A 6.25% 7/15/19		1,365,000		1,163,777
#	Odebrecht Finance 144A 6.00% 4/5/23		1,561,000		1,579,264
	RSC Equipment Rental 10.25% 11/15/19		820,000		906,100
#	Votorantim Cimentos 144A 7.25% 4/5/41		2,900,000		2,958,000
	WMX Technologies 7.10% 8/1/26		1,025,000		1,319,395
					8,946,656

Statements of net assets
Delaware Extended Duration Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Communications – 9.17%
	America Movil 6.125% 3/30/40	USD	2,615,000	$	3,210,085
	American Tower 5.90% 11/1/21		1,495,000		1,612,060
#	Brasil Telecom 144A 9.75% 9/15/16	BRL	2,133,000		1,218,579
*	Cablevision Systems 8.00% 4/15/20	USD	1,955,000		2,150,500
#	CC Holdings 144A 7.75% 5/1/17		235,000		256,444
#	Clearwire Communications 144A 12.00% 12/1/15		2,190,000		2,075,025
	Comcast 6.95% 8/15/37		5,072,000		6,599,589
	Cricket Communications 7.75% 10/15/20		735,000		701,925
	Crown Castle International 9.00% 1/15/15		660,000		722,700
#	Crown Castle Towers 144A 4.883% 8/15/20		2,000,000		2,086,228
	Deutsche Telekom International Finance
	8.75% 6/15/30		1,335,000		1,934,985
#	Digicel Group 144A
	8.875% 1/15/15		1,050,000		1,063,125
	10.50% 4/15/18		520,000		552,500
	DIRECTV Holdings 6.375% 3/1/41		1,615,000		1,910,117
	DISH DBS 7.875% 9/1/19		380,000		439,850
	Intelsat Bermuda 11.25% 2/4/17		1,180,000		1,194,750
#	Nara Cable Funding 144A 8.875% 12/1/18		2,100,000		2,005,500
*	PAETEC Holding 9.50% 7/15/15		400,000		422,000
	Qwest 6.75% 12/1/21		3,940,000		4,380,744
	Qwest Communications International
	7.125% 4/1/18		700,000		752,500
	Sprint Capital 6.875% 11/15/28		1,460,000		1,089,525
	Telefonica Emisiones
	5.134% 4/27/20		1,000,000		977,296
	5.462% 2/16/21		3,280,000		3,264,453
	Telesat 11.00% 11/1/15		230,000		247,250
	Time Warner Cable 5.50% 9/1/41		4,000,000		4,336,372
	US West Communications 6.875% 9/15/33		3,510,000		3,513,496
#	VimpelCom Holdings 144A 7.504% 3/1/22		1,520,000		1,436,400
	Virgin Media Secured Finance 6.50% 1/15/18		4,725,000		5,103,000
#	Wind Acquisition Finance 144A 11.75% 7/15/17		3,045,000		3,029,775
#	WPP Finance 2010 144A 4.75% 11/21/21		2,400,000		2,470,188
#	XM Satellite Radio 144A 13.00% 8/1/13		570,000		652,650
					61,409,611

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Consumer Cyclical – 5.19%
#	Chrysler Group 144A 8.25% 6/15/21	USD	1,725,000	$	1,656,000
	CVS Caremark 5.75% 5/15/41		4,035,000		4,862,239
#	Delphi 144A 6.125% 5/15/21		1,625,000		1,714,375
	Ford Motor 7.45% 7/16/31		1,125,000		1,392,188
	Ford Motor Credit 5.00% 5/15/18		2,010,000		2,084,822
	Harrah’s Operating
	10.00% 12/15/18		1,085,000		843,588
	11.25% 6/1/17		335,000		364,731
	Host Hotels & Resorts
	5.875% 6/15/19		1,130,000		1,206,275
	6.00% 11/1/20		295,000		316,019
	#144A 6.00% 10/1/21		900,000		965,250
	Johnson Controls 5.25% 12/1/41		2,640,000		2,854,178
	Macy’s Retail Holdings
	5.125% 1/15/42		2,370,000		2,477,261
	7.875% 7/15/15		150,000		176,363
	MGM Resorts International
	10.375% 5/15/14		90,000		103,050
	11.125% 11/15/17		110,000		125,675
	11.375% 3/1/18		1,580,000		1,820,950
	13.00% 11/15/13		175,000		205,406
	OSI Restaurant Partners 10.00% 6/15/15		1,735,000		1,804,400
	Quiksilver 6.875% 4/15/15		1,000,000		967,500
	Ryland Group 8.40% 5/15/17		495,000		535,838
	Time Warner 5.375% 10/15/41		2,000,000		2,223,416
	Wal-Mart Stores 4.875% 7/8/40		2,650,000		3,000,084
	Wyndham Worldwide 5.625% 3/1/21		2,880,000		3,046,760
					34,746,368
Consumer Non-Cyclical – 8.09%
	Amgen
	4.95% 10/1/41		2,252,000		2,328,595
	5.15% 11/15/41		2,300,000		2,451,375
#	Aristotle Holding 144A 6.125% 11/15/41		6,320,000		6,909,719
	Celgene 5.70% 10/15/40		4,895,000		5,490,511
	Corn Products International 6.625% 4/15/37		2,950,000		3,496,756
	Delhaize Group 5.70% 10/1/40		1,895,000		1,859,419
#	Grupo Bimbo 144A 4.50% 1/25/22		880,000		900,361
	HCA Holdings 7.75% 5/15/21		570,000		599,925
#	inVentiv Health 144A 10.00% 8/15/18		1,025,000		932,750

Statements of net assets
Delaware Extended Duration Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Consumer Non-Cyclical (continued)
	Mattel 5.45% 11/1/41	USD	3,440,000	$	3,646,125
#	Mylan 144A 7.625% 7/15/17		1,530,000		1,688,738
#	Pernod-Ricard 144A 5.50% 1/15/42		8,074,000		8,521,864
	Quest Diagnostics 5.75% 1/30/40		4,875,000		5,395,153
#	SABMiller Holdings 144A 4.95% 1/15/42		6,500,000		6,939,420
	Supervalu 7.50% 11/15/14		460,000		470,925
	Teva Pharmaceutical Finance IV 3.65% 11/10/21		1,000,000		1,059,966
	Tyson Foods 10.50% 3/1/14		1,290,000		1,502,850
					54,194,452
Electric – 11.14%
	AES 8.00% 6/1/20		325,000		370,500
	Ameren Illinois 9.75% 11/15/18		2,180,000		2,904,850
#	Centrais Eletricas Brasileiras 144A 5.75% 10/27/21		2,055,000		2,172,135
	ComEd Financing III 6.35% 3/15/33		4,500,000		4,545,522
	Duke Energy Carolinas 4.25% 12/15/41		6,025,000		6,378,293
#	Enel Finance International 144A 6.00% 10/7/39		3,800,000		3,241,601
	Florida Power & Light 4.125% 2/1/42		5,650,000		5,908,923
•	FPL Group Capital
	6.35% 10/1/66		3,067,000		3,100,762
	6.65% 6/15/67		975,000		988,290
	Ipalco Enterprises 5.00% 5/1/18		830,000		822,738
	LG&E & KU Energy 3.75% 11/15/20		525,000		529,720
#	Oncor Electric Delivery 144A 4.55% 12/1/41		5,500,000		5,649,820
	Pacific Gas & Electric
	4.50% 12/15/41		2,510,000		2,621,954
	5.40% 1/15/40		2,180,000		2,573,767
•	PPL Capital Funding 6.70% 3/30/67		4,780,000		4,725,317
	PPL Electric Utilities 5.20% 7/15/41		2,800,000		3,359,073
	Puget Sound Energy
	4.434% 11/15/41		4,870,000		5,161,036
	•6.974% 6/1/67		2,495,000		2,509,606
	South Carolina Electric & Gas 5.45% 2/1/41		5,135,000		6,171,114
•	Wisconsin Energy 6.25% 5/15/67		4,405,000		4,509,143
•	WPS Resources 6.11% 12/1/66		1,375,000		1,350,608
	Xcel Energy 4.80% 9/15/41		4,500,000		4,967,145
					74,561,917

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Energy – 6.76%
#	BG Energy Capital 144A 4.00% 10/15/21	USD	4,000,000	$	4,296,320
	Chesapeake Energy 7.25% 12/15/18		650,000		700,375
	Encana
	3.90% 11/15/21		585,000		573,816
	5.15% 11/15/41		1,140,000		1,113,599
#	ENI 144A 5.70% 10/1/40		3,450,000		3,713,380
#	Hercules Offshore 144A 10.50% 10/15/17		595,000		597,975
#	Korea National Oil 144A 4.00% 10/27/16		2,235,000		2,317,988
	Laredo Petroleum 9.50% 2/15/19		1,910,000		2,096,225
	Noble Energy
	4.15% 12/15/21		1,000,000		1,041,963
	6.00% 3/1/41		1,185,000		1,368,583
	Noble Holding International 6.05% 3/1/41		2,400,000		2,741,570
	Petrobras International Finance 5.375% 1/27/21		3,415,000		3,595,811
	Petrohawk Energy 7.25% 8/15/18		5,575,000		6,383,374
#	Petroleos Mexicanos 144A 6.50% 6/2/41		2,998,000		3,327,780
	Suncor Energy 6.85% 6/1/39		2,500,000		3,296,288
	Transocean 6.375% 12/15/21		945,000		1,073,613
	Weatherford Bermuda 6.75% 9/15/40		4,290,000		5,103,885
	Williams
	7.75% 6/15/31		919,000		1,115,423
	8.75% 3/15/32		619,000		820,226
					45,278,194
Finance Companies – 2.43%
	FTI Consulting
	6.75% 10/1/20		865,000		923,388
	7.75% 10/1/16		375,000		391,875
	General Electric Capital 5.875% 1/14/38		5,845,000		6,416,535
•#	ILFC E-Capital Trust I 144A 4.34% 12/21/65		1,000,000		636,770
•#	ILFC E-Capital Trust II 144A 6.25% 12/21/65		1,250,000		906,250
	International Lease Finance 6.25% 5/15/19		1,292,000		1,267,884
#	IPIC GMTN 144A 5.50% 3/1/22		3,807,000		3,873,622
	PHH 9.25% 3/1/16		1,935,000		1,867,275
					16,283,599
Insurance – 5.16%
	American International Group
	•8.175% 5/15/58		2,575,000		2,510,625
	8.25% 8/15/18		2,470,000		2,851,543
•	Chubb 6.375% 3/29/67		2,555,000		2,618,875

Statements of net assets
Delaware Extended Duration Bond Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Insurance (continued)
	Coventry Health Care 5.45% 6/15/21	USD	3,875,000	$	4,342,635
#	Highmark 144A 6.125% 5/15/41		4,510,000		4,893,103
•	ING Groep 5.775% 12/29/49		3,200,000		2,648,000
#	Liberty Mutual 144A 7.00% 3/15/37		1,600,000		1,416,000
#	MetLife Capital Trust IV 144A 7.875% 12/15/37		900,000		965,250
#	MetLife Capital Trust X 144A 9.25% 4/8/38		3,530,000		4,191,875
	Prudential Financial 5.625% 5/12/41		3,210,000		3,346,839
	Transatlantic Holdings 8.00% 11/30/39		704,000		800,566
•#	ZFS Finance USA Trust II 144A 6.45% 12/15/65		1,395,000		1,325,250
•#	ZFS Finance USA Trust IV 144A 5.875% 5/9/32		2,705,000		2,664,425
					34,574,986
Natural Gas – 7.31%
*	AGL Capital 5.875% 3/15/41		4,605,000		5,656,939
	AmeriGas Finance
	6.75% 5/20/20		310,000		310,775
	7.00% 5/20/22		305,000		306,525
@	Boston Gas 6.95% 12/1/23		200,000		248,920
	El Paso Pipeline Partners Operating 7.50% 11/15/40		3,065,000		3,630,342
•	Enbridge Energy Partners 8.05% 10/1/37		4,750,000		5,122,305
	Energy Transfer Partners
	6.50% 2/1/42		4,835,000		5,234,265
	9.70% 3/15/19		1,535,000		1,943,557
•	Enterprise Products Operating 7.034% 1/15/68		3,020,000		3,197,528
#	KeySpan Gas East 144A 5.819% 4/1/41		1,195,000		1,452,845
	Kinder Morgan Energy Partners 6.95% 1/15/38		5,050,000		5,835,234
	NiSource Finance
	*5.95% 6/15/41		4,000,000		4,423,108
	6.25% 12/15/40		1,710,000		1,966,820
	Plains All American Pipeline 6.65% 1/15/37		1,415,000		1,703,274
	Sempra Energy 6.00% 10/15/39		3,160,000		3,944,002
•	TransCanada PipeLines 6.35% 5/15/67		3,940,000		3,987,343
					48,963,782
Real Estate – 2.20%
	Developers Diversified Realty 7.875% 9/1/20		2,010,000		2,381,372
	Digital Realty Trust 5.25% 3/15/21		2,270,000		2,322,866
	Health Care REIT 6.50% 3/15/41		3,615,000		3,954,889
	Regency Centers 5.875% 6/15/17		1,140,000		1,278,125

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Real Estate (continued)
	UDR 4.625% 1/10/22	USD	2,730,000	$	2,859,462
#	WEA Finance 144A 4.625% 5/10/21		1,805,000		1,908,905
					14,705,619
Technology – 1.68%
	Applied Materials 5.85% 6/15/41		2,000,000		2,344,570
	CDW 12.535% 10/12/17		1,925,000		2,093,438
*	First Data 11.25% 3/31/16		1,120,000		977,200
	GXS Worldwide 9.75% 6/15/15		1,320,000		1,300,200
	Tyco Electronics Group 3.50% 2/3/22		2,480,000		2,470,253
	Xerox 4.50% 5/15/21		2,000,000		2,056,626
					11,242,287
Transportation – 1.54%
	Burlington Northern Santa Fe 4.95% 9/15/41		4,000,000		4,404,428
	CSX 4.75% 5/30/42		5,620,000		5,881,971
					10,286,399
Total Corporate Bonds (cost $519,975,471)					555,172,855

Municipal Bonds – 5.48%
	California State Various Purposes 5.00% 10/1/41		2,500,000		2,712,225
	Chicago, Illinois O’Hare International Airport
	Taxable Build America Bond Series B
	6.395% 1/1/40		3,800,000		4,858,947
	Long Island power Authority, New York Electric
	System Revenue Taxable Build America Bond
	5.85% 5/1/41		3,600,000		4,240,080
	Los Angeles, California Department of Water &
	Power Revenue Taxable Build America Bond
	6.574% 7/1/45		2,225,000		3,008,934
	Massachusetts Development Finance Agency
	Revenue (Harvard University) Series B-1
	5.00% 10/15/40		3,975,000		4,584,884
	Metropolitan Transportation Authority,
	New York Taxable Build America Bond
	(Dedicated Tax Fund)
	Series A2 6.089% 11/15/40		3,205,000		4,052,690
	Series C-1 6.687% 11/15/40		3,000,000		3,855,600
	New Jersey Transportation Trust Fund Authority
	Series B 5.00% 6/15/42		2,500,000		2,727,375

Statements of net assets
Delaware Extended Duration Bond Fund

		Principal amount°		Value (U.S. $)
Municipal Bonds (continued)
	Oregon Department of Transportation Highway
	User Tax Revenue Taxable Build America Bond
	(Subordinate Lien Direct Payment) Series A
	5.834% 11/15/34	USD	1,605,000	$	1,957,635
	San Francisco Bay Area Toll Authority, California
	Toll Bridge Revenue Taxable Build America
	Bond Series S3 6.907% 10/1/50		1,485,000		2,035,935
	Triborough Bridge & Tunnel Authority, New York
	Revenue Taxable Build America Bond
	Series A-2 5.45% 11/15/32		2,310,000		2,675,303
Total Municipal Bonds (cost $30,285,752)					36,709,608

ΔRegional Bonds – 0.39%
Australia – 0.24%
	New South Wales Treasury 6.00% 4/1/19	AUD	428,000		499,070
	Queensland Treasury 6.25% 6/14/19	AUD	968,000		1,129,871
					1,628,941
Canada – 0.15%
	Ontario Province 3.15% 6/2/22	CAD	303,000		309,647
	Quebec Province 4.25% 12/1/21	CAD	584,000		651,225
					960,872
Total Regional Bonds (cost $2,461,064)					2,589,813

«Senior Secured Loans – 1.88%
	Alliance HealthCare Services 7.25% 6/1/16	USD	405,866		358,684
	Burlington Coat Factory Warehouse Tranche B
	6.25% 2/10/17		763,120		762,769
	Chrysler Group 6.00% 4/28/17		1,393,000		1,367,083
	Immucor Tranche B 7.25% 7/2/18		1,211,963		1,222,870
	Kinetic Concepts Tranche B 7.00% 1/12/18		2,125,000		2,163,739
	MGM Resorts International Tranche E
	7.00% 2/21/14		1,848,632		1,852,098
	Nuveen Investments 2nd Lien 12.50% 7/9/15		620,000		648,210
	Reynolds Group Holdings 6.50% 7/7/18		1,238,428		1,244,620
@	United Rentals
	Secured Bridge Loan 7.37% 12/15/12		876,023		876,023
	Unsecured Bridge Loan 8.88% 12/15/12		2,088,977		2,088,977
Total Senior Secured Loans (cost $12,475,497)					12,585,073

		Principal amount°		Value (U.S. $)
ΔSovereign Bonds – 3.25%
Australia – 0.20%
	Australian Government Inflation-Linked Bond
	4.00% 8/20/15	AUD	697,000	$	1,338,314
					1,338,314
Brazil – 0.19%
	Brazilian Government International Bond
	5.625% 1/7/41	USD	1,110,000		1,282,050
					1,282,050
Canada – 0.07%
	Canadian Government Bond 3.75% 6/1/19	CAD	418,000		477,404
					477,404
Chile – 0.17%
	Chile Government International Bond
	5.50% 8/5/20	CLP	537,000,000		1,142,786
					1,142,786
Colombia – 0.46%
	Colombia Government International Bond
	6.125% 1/18/41	USD	2,589,000		3,119,745
					3,119,745
Germany – 0.03%
	Deutschland Republic 2.00% 1/4/22	EUR	132,000		175,707
					175,707
Indonesia – 0.66%
	Indonesia Treasury Bond 11.00% 11/15/20	IDR	7,466,000,000		1,154,746
#	Republic of Indonesia 144A 5.25% 1/17/42	USD	3,121,000		3,238,037
					4,392,783
Peru – 0.05%
	Peruvian Government International Bond
	5.625% 11/18/50		320,000		345,920
					345,920
Philippines – 0.25%
	Philippine Government International Bond
	5.00% 1/13/37		1,640,000		1,693,300
					1,693,300
Poland – 0.39%
	Poland Government International Bond
	5.00% 3/23/22		2,552,000		2,600,488
					2,600,488

Statements of net assets
Delaware Extended Duration Bond Fund

		Principal amount°		Value (U.S. $)
ΔSovereign Bonds (continued)
Republic of Korea – 0.21%
	Korea Treasury Inflation-Linked Bond
	2.75% 6/10/20	KRW	1,356,547,247	$	1,381,934
					1,381,934
Romania – 0.40%
#	Romanian Government International Bond 144A
	6.75% 2/7/22	USD	2,680,000		2,656,068
					2,656,068
Russia – 0.17%
	Russian-Eurobond 7.50% 3/31/30		968,600		1,150,213
					1,150,213
Total Sovereign Bonds (cost $20,870,697)					21,756,712

U.S. Treasury Obligations – 2.30%
	U.S. Treasury Bonds 3.75% 8/15/41		3,180,000		3,707,683
	U.S. Treasury Notes
	1.375% 12/31/18		1,770,000		1,788,392
	2.00% 11/15/21		6,445,000		6,558,793
^∞	U.S. Treasury Strip Principal 3.005% 11/15/41		8,505,000		3,365,990
Total U.S. Treasury Obligations
	(cost $15,270,168)				15,420,858

		Number of shares
Preferred Stock – 0.90%
	Alabama Power 5.625%		16,200		414,620
	Ally Financial
	#144A 7.00%		2,175		1,751,486
	∏•8.50%		50,000		1,045,500
•	PNC Financial Services Group 8.25%		1,615,000		1,683,652
•	US Bancorp 6.50%		44,000		1,122,000
Total Preferred Stock (cost $6,315,229)					6,017,258

		Notional of contracts		Value (U.S. $)
Options Purchased – 0.03%
Put Swaptions – 0.03%
	10-Yr IRS, strike price 5.23%,
	expires 1/9/14 (CITI)		4,000,000	$	19,404
	30-Yr IRS, strike price 4.813%,
	expires 1/9/14 (BAML)		8,000,000		144,970
Total Options Purchased (cost $982,400)					164,374

		Principal amount°
Short-Term Investments – 3.56%
≠Discount Notes – 0.35%
	Fannie Mae 0.01% 3/7/12	USD	521,293		521,283
	Federal Home Loan Bank 0.02% 3/21/12		1,820,879		1,820,830
					2,342,113
Repurchase Agreement – 3.13%
	BNP Paribas 0.18%, dated 1/31/12, to be
	repurchased on 2/1/12, repurchase price
	$20,985,105 (collateralized by U.S.
	government obligations 0.00%-4.625%
	5/15/21-2/15/19; market value $21,404,469)		20,985,000		20,985,000
					20,985,000
≠U.S. Treasury Obligation – 0.08%
	U.S. Treasury Bill 0.001% 2/23/12		521,293		521,280
					521,280
Total Short-Term Investments (cost $23,848,410)					23,848,393

Total Value of Securities Before Securities
	Lending Collateral – 101.79%
	(cost $639,452,212)				681,449,056

		Number of shares
**Securities Lending Collateral – 0.34%
Investment Companies
	BNY Mellon SL DBT II Liquidating Fund		40,572		39,416
	Delaware Investments Collateral Fund No.1		2,265,960		2,265,960
@†	Mellon GSL Reinvestment Trust II		96,378		0
Total Securities Lending Collateral
	(cost $2,402,910)				2,305,376

Statements of net assets
Delaware Extended Duration Bond Fund

	Value (U.S. $)

Total Value of Securities – 102.13%
(cost $641,855,122)	$	683,754,432	©
**Obligation to Return Securities
Lending Collateral – (0.36%)		(2,402,910	)
***Other Liabilities Net of Receivables
and Other Assets – (1.77%)		(11,858,996	)«
Net Assets Applicable to 100,691,114
Shares Outstanding – 100.00%	$	669,492,526

Net Asset Value – Delaware Extended Duration Bond Fund
Class A ($397,559,024 / 59,767,809 Shares)		$6.65
Net Asset Value – Delaware Extended Duration Bond Fund
Class B ($2,132,176 / 321,143 Shares)		$6.64
Net Asset Value – Delaware Extended Duration Bond Fund
Class C ($43,281,027 / 6,508,809 Shares)		$6.65
Net Asset Value – Delaware Extended Duration Bond Fund
Class R ($15,591,486 / 2,341,312 Shares)		$6.66
Net Asset Value – Delaware Extended Duration Bond Fund
Institutional Class ($210,928,813 / 31,752,041 Shares)		$6.64

Components of Net Assets at January 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	612,162,139
Undistributed net investment income		957,973
Accumulated net realized gain		14,041,088
Net unrealized appreciation of investments and derivatives		42,331,326
Total net assets	$	669,492,526

°	Principal amount shown is stated in the currency in which each security is denominated.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At January 31, 2012, the aggregate value of Rule 144A securities was $123,962,025, which represented 18.52% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
Φ	Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at January 31, 2012.
•	Variable rate security. The rate shown is the rate as of January 31, 2012. Interest rates reset periodically.
@	Illiquid security. At January 31, 2012, the aggregate value of illiquid securities was $4,338,383, which represented 0.65% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
*	Fully or partially on loan.
Δ	Securities have been classified by country of origin.
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at January 31, 2012.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
∞	Fully or partially pledged as collateral for futures contracts.
∏	Restricted security. This investment is in a security not registered under the Securities Act of 1933, as amended, and has certain restrictions on resale which may limit its liquidity. At January 31, 2012, the aggregate value of the restricted security was $1,045,500, which represented 0.16% of the Fund’s net assets.
≠	The rate shown is the effective yield at the time of purchase.
**	See Note 9 in “Notes to financial statements” for additional information on securities lending collateral.
†	Non income producing security.
©	Includes $2,342,395 of securities loaned.
***	Includes $1,950,000 collateral for futures contracts.
«	Includes foreign currency valued at $189,887 with a cost of $184,665.

Statements of net assets
Delaware Extended Duration Bond Fund


Net Asset Value and Offering Price Per Share –
Delaware Extended Duration Bond Fund
Net asset value Class A (A)	$	6.65
Sales charge (4.50% of offering price) (B)		0.31
Offering price	$	6.96

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)		See the current prospectus for purchases of $100,000 or more.

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

Foreign Currency Exchange Contracts

								Unrealized
	Contracts to							Appreciation
Counterparty	Receive (Deliver)			In Exchange For			Settlement Date	(Depreciation)
BAML	EUR	(774,643	)	USD	986,849		2/17/12		$	(27,198	)
BCLY	AUD	(2,974,259	)	USD	3,026,487		2/17/12			(134,406	)
BCLY	EUR	(2,213,335	)	USD	2,818,616		2/17/12			(78,750	)
GSC	GBP	768,904		USD	(1,187,381	)	2/17/12			25,989
HSBC	AUD	522,505		USD	(532,302	)	2/17/12			22,990
HSBC	EUR	(2,553,455	)	USD	3,250,919		2/17/12			(91,682	)
JPMC	EUR	(443,000	)	USD	563,983		2/17/12			(15,926	)
MSC	EUR	(406,648	)	USD	517,513		2/17/12			(14,810	)
									$	(313,793	)

Futures Contracts

									Unrealized
		Notional Cost							Appreciation
Contracts to Buy (Sell)		(Proceeds)			Notional Value			Expiration Date	(Depreciation)
(586)	U.S. Treasury 10 yr Note	$	(76,203,774	)	$	(77,498,500	)	3/30/12		$	(1,294,726	)
1,029	U.S. Treasury Long Bond		147,855,445			149,655,188		3/30/12			1,799,743
381	U.S. Treasury Ultra Term Bond		60,244,830			60,948,094		3/30/12			703,264
		$	131,896,501							$	1,208,281


Swap Contracts
CDS Contracts

				Annual		Unrealized
	Swap	Notional		Protection	Termination	Appreciation
Counterparty	Referenced Obligation	Value		Payments	Date	(Depreciation)
	Protection Purchased:
BAML	ITRAXX Europe Subordinate
	Financials 16.1 5 yr CDS	EUR	1,100,000	5.00%	12/20/16	$	(87,095	)
JPMC	Finmeccanica 5 yr CDS	USD	685,000	5.00%	3/20/17		(15,293	)
JPMC	ITRAXX Europe Crossover
	Financials 16.1 5 yr CDS	EUR	1,255,000	5.00%	12/20/16		(40,798	)
JPMC	ITRAXX Europe Subordinate
	Financials 16.1 5 yr CDS	EUR	1,860,000	5.00%	12/20/16		(187,100	)
JPMC	MeadWestvaco 5 yr CDS	USD	2,600,000	1.00%	12/20/16		(89,819	)
JPMC	Republic of France 5 yr CDS		1,631,000	0.25%	9/20/16		8,081
MSC	Japan 5 yr CDS		1,390,000	1.00%	9/20/16		8,820
MSC	People’s Republic of China
	5 yr CDS		2,975,000	1.00%	12/20/16		(95,655	)
MSC	Republic of France 5 yr CDS		1,498,000	0.25%	12/20/16		(12,506	)
						$	(511,365	)
	Protection Sold/Moody’s Rating:
JPMC	Georgia Pacific 5 yr CDS / Baa	USD	2,600,000	1.00%	12/20/16	$	83,383
JPMC	Tyson Foods CDS / Ba		1,100,000	1.00%	3/20/16		29,396
						$	112,779
Total						$	(398,586	)

Statements of net assets
Delaware Extended Duration Bond Fund

Summary of abbreviations:
AUD — Australian Dollar
BAML — Bank of America Merrill Lynch
BCLY — Barclays Bank
BRL — Brazilian Real
CAD — Canadian Dollar
CDS — Credit Default Swap
CITI — Citigroup Global Markets
CLP — Chilean Peso
EUR — European Monetary Unit
GBP — British Pound Sterling
GSC — Goldman Sachs Capital
HSBC — Hong Kong Shanghai Bank
IDR — Indonesia Rupiah
IRS — Interest Rate Swap
JPMC — JPMorgan Chase Bank
KRW — South Korean Won
MSC — Morgan Stanley Capital
REIT — Real Estate Investment Trust
USD — United States Dollar
yr — Year

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

Statements of operations
	Six Months Ended January 31, 2012 (Unaudited)

	Delaware			Delaware
	Corporate			Extended
	Bond			Duration Bond
	Fund			Fund
Investment Income:
Interest	$	23,517,892		$	16,863,661
Dividends		395,552			207,250
Securities lending income		35,013			24,006
Foreign tax withheld		(35,633	)		(7,708	)
		23,912,824			17,087,209
Expenses:
Management fees		2,292,840			1,656,300
Distribution expense – Class A		633,037			575,210
Distribution expense – Class B		29,875			10,884
Distribution expense – Class C		739,691			165,761
Distribution expense – Class R		39,393			40,592
Dividend disbursing and transfer agent fees and expenses		643,427			309,637
Accounting and administration expenses		184,864			120,528
Reports and statements to shareholders		51,974			29,102
Registration fees		41,925			45,008
Legal fees		38,290			28,281
Trustees’ fees		24,700			15,804
Custodian fees		19,211			13,241
Audit and tax		18,666			17,353
Dues and services		7,237			5,624
Insurance fees		5,196			2,764
Pricing fees		4,357			4,719
Consulting fees		3,606			2,685
Trustees’ expenses		2,052			1,192
		4,780,341			3,044,685
Less fees waived		(72,729	)		(114,938	)
Less waived distribution expenses – Class A		(105,506	)		(95,868	)
Less waived distribution expenses – Class R		(6,566	)		(6,765	)
Less expense paid indirectly		(227	)		(148	)
Total operating expenses		4,595,313			2,826,966
Net Investment Income		19,317,511			14,260,243

	Delaware			Delaware
	Corporate			Extended
	Bond			Duration Bond
	Fund			Fund
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	22,201,238		$	17,191,459
Futures contracts		3,266,898			21,046,404
Swap contracts		1,162,227			292,094
Foreign currencies		602,011			260,991
Foreign currency exchange contracts		(89,899	)		344,945
Options written		(119,191	)		(225,468	)
Net realized gain		27,023,284			38,910,425
Net change in unrealized appreciation (depreciation) on:
Options written		17,913			8,757
Foreign currency exchange contracts		(764,345	)		(383,108	)
Futures contracts		(315,274	)		(132,064	)
Foreign currencies		14,462			5,779
Swap contracts		(2,474,604	)		(1,259,480	)
Investments		(8,201,117	)		14,264,891
Net change in unrealized appreciation (depreciation)		(11,722,965	)		12,504,775
Net Realized and Unrealized Gain		15,300,319			51,415,200

Net Increase in Net Assets Resulting
from Operations	$	34,617,830		$	65,675,443

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

Statements of changes in net assets
Delaware Corporate Bond Fund

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	19,317,511		$	44,109,977
Net realized gain		27,023,284			33,584,238
Net change in unrealized appreciation (depreciation)		(11,722,965	)		7,684,323
Net increase in net assets resulting from operations		34,617,830			85,378,538

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(10,626,387	)		(20,177,208	)
Class B		(128,255	)		(360,259	)
Class C		(3,168,700	)		(5,958,860	)
Class R		(314,658	)		(536,724	)
Institutional Class		(9,223,288	)		(23,146,689	)

Net realized gain:
Class A		(9,737,378	)		(18,619,739	)
Class B		(130,539	)		(400,441	)
Class C		(3,416,230	)		(6,355,176	)
Class R		(327,404	)		(474,102	)
Institutional Class		(7,396,501	)		(20,157,143	)
		(44,469,340	)		(96,186,341	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		151,077,083			155,538,522
Class B		76,902			97,900
Class C		47,221,325			36,483,043
Class R		6,658,213			7,492,056
Institutional Class		145,409,646			300,959,811

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		16,783,457			31,298,663
Class B		214,090			575,629
Class C		5,411,736			9,519,702
Class R		624,528			989,624
Institutional Class		13,245,882			34,711,566
		386,722,862			577,666,516

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(70,849,351	)	$	(200,246,754	)
Class B		(1,302,827	)		(3,680,277	)
Class C		(13,163,221	)		(50,191,010	)
Class R		(5,078,350	)		(6,651,589	)
Institutional Class		(251,422,165	)		(221,334,191	)
		(341,815,914	)		(482,103,821	)
Increase in net assets derived
from capital share transactions		44,906,948			95,562,695
Net Increase in Net Assets		35,055,438			84,754,892

Net Assets:
Beginning of period		1,013,570,866			928,815,974
End of period	$	1,048,626,304		$	1,013,570,866

Distributions in excess of net investment income	$	(308,286	)	$	(361,280	)

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

Statements of changes in net assets
Delaware Extended Duration Bond Fund

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Increase in Net Assets from Operations:
Net investment income	$	14,260,243		$	21,773,393
Net realized gain		38,910,425			16,770,963
Net change in unrealized appreciation		12,504,775			2,791,904
Net increase in net assets resulting from operations		65,675,443			41,336,260

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(9,756,479	)		(15,852,945	)
Class B		(47,108	)		(131,629	)
Class C		(719,206	)		(1,089,216	)
Class R		(327,239	)		(695,505	)
Institutional Class		(4,746,027	)		(4,741,267	)

Net realized gain:
Class A		(16,010,715	)		(14,282,673	)
Class B		(85,710	)		(157,648	)
Class C		(1,444,849	)		(1,262,536	)
Class R		(571,733	)		(744,442	)
Institutional Class		(7,635,267	)		(3,440,914	)
		(41,344,333	)		(42,398,775	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		81,854,347			153,640,124
Class B		24,905			50,958
Class C		18,238,075			11,682,865
Class R		6,456,666			12,378,423
Institutional Class		102,361,702			110,747,266

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		24,645,688			28,522,062
Class B		111,323			222,194
Class C		1,903,453			1,924,842
Class R		894,315			1,439,947
Institutional Class		11,162,280			7,217,008
		247,652,754			327,825,689

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(75,982,231	)	$	(103,758,638	)
Class B		(315,791	)		(1,462,031	)
Class C		(2,804,800	)		(11,781,175	)
Class R		(3,139,973	)		(16,929,980	)
Institutional Class		(33,935,949	)		(44,476,105	)
		(116,178,744	)		(178,407,929	)
Increase in net assets derived
from capital share transactions		131,474,010			149,417,760
Net Increase in Net Assets		155,805,120			148,355,245

Net Assets:
Beginning of period		513,687,406			365,332,161
End of period	$	669,492,526		$	513,687,406

Undistributed net investment income	$	957,973		$	936,905

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

Financial highlights
Delaware Corporate 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 income²
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Net realized gain
Total dividends and distributions

Net asset value, end of period

Total return³

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
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly
Portfolio turnover

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

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

3 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 reflect waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.050		$6.080		$5.460		$5.240		$5.520		$5.490


	0.123		0.268		0.309		0.314		0.279		0.301
	0.092		0.278		0.647		0.216		(0.272	)	0.046
	0.215		0.546		0.956		0.530		0.007		0.347


	(0.149	)	(0.305	)	(0.336	)	(0.310	)	(0.287	)	(0.317	)
	(0.136	)	(0.271	)	—		—		—		—
	(0.285	)	(0.576	)	(0.336	)	(0.310	)	(0.287	)	(0.317	)

	$5.980		$6.050		$6.080		$5.460		$5.240		$5.520

	3.75%		9.44%		17.91%		11.04%		0.04%		6.35%


	$485,856		$392,313		$409,671		$459,892		$268,659		$304,255
	0.95%		0.95%		0.94%		0.90%		0.90%		0.82%

	1.01%		1.09%		1.10%		1.11%		1.08%		1.06%
	4.14%		4.45%		5.31%		6.45%		5.10%		5.35%

	4.08%		4.31%		5.15%		6.24%		4.92%		5.11%
	118%		204%		219%		271%		355%		244%

Financial highlights
Delaware Corporate Bond Fund Class B

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 income²
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Net realized gain
Total dividends and distributions

Net asset value, end of period

Total return³

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
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly
Portfolio turnover

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.050		$6.080		$5.460		$5.230		$5.520		$5.480


	0.101		0.223		0.265		0.278		0.238		0.259
	0.082		0.278		0.647		0.225		(0.283	)	0.055
	0.183		0.501		0.912		0.503		(0.045	)	0.314


	(0.127	)	(0.260	)	(0.292	)	(0.273	)	(0.245	)	(0.274	)
	(0.136	)	(0.271	)	—		—		—		—
	(0.263	)	(0.531	)	(0.292	)	(0.273	)	(0.245	)	(0.274	)

	$5.970		$6.050		$6.080		$5.460		$5.230		$5.520

	3.37%		8.62%		17.04%		10.43%		(0.90%	)	5.56%


	$5,612		$6,705		$9,807		$11,938		$15,525		$22,694
	1.70%		1.70%		1.69%		1.65%		1.65%		1.57%

	1.71%		1.79%		1.80%		1.81%		1.78%		1.76%
	3.39%		3.70%		4.56%		5.70%		4.35%		4.60%

	3.38%		3.61%		4.45%		5.54%		4.22%		4.41%
	118%		204%		219%		271%		355%		244%

Financial highlights
Delaware Corporate Bond Fund Class C

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 income²
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Net realized gain
Total dividends and distributions

Net asset value, end of period

Total return³

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
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly
Portfolio turnover

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.050		$6.090		$5.470		$5.240		$5.520		$5.490


	0.101		0.223		0.266		0.278		0.238		0.259
	0.092		0.268		0.646		0.225		(0.273	)	0.045
	0.193		0.491		0.912		0.503		(0.035	)	0.304


	(0.127	)	(0.260	)	(0.292	)	(0.273	)	(0.245	)	(0.274	)
	(0.136	)	(0.271	)	—		—		—		—
	(0.263	)	(0.531	)	(0.292	)	(0.273	)	(0.245	)	(0.274	)

	$5.980		$6.050		$6.090		$5.470		$5.240		$5.520

	3.36%		8.44%		17.01%		10.41%		(0.71%	)	5.55%


	$174,421		$135,912		$141,328		$121,901		$62,211		$67,693
	1.70%		1.70%		1.69%		1.65%		1.65%		1.57%

	1.71%		1.79%		1.80%		1.81%		1.78%		1.76%
	3.39%		3.70%		4.56%		5.70%		4.35%		4.60%

	3.38%		3.61%		4.45%		5.54%		4.22%		4.41%
	118%		204%		219%		271%		355%		244%

Financial highlights
Delaware Corporate Bond Fund Class R

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 income²
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Net realized gain
Total dividends and distributions

Net asset value, end of period

Total return³

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
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly
Portfolio turnover

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

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

3 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 reflect waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.050		$6.090		$5.470		$5.240		$5.520		$5.490


	0.116		0.253		0.295		0.302		0.265		0.287
	0.092		0.268		0.646		0.226		(0.272	)	0.045
	0.208		0.521		0.941		0.528		(0.007	)	0.332


	(0.142	)	(0.290	)	(0.321	)	(0.298	)	(0.273	)	(0.302	)
	(0.136	)	(0.271	)	—		—		—		—
	(0.278	)	(0.561	)	(0.321	)	(0.298	)	(0.273	)	(0.302	)

	$5.980		$6.050		$6.090		$5.470		$5.240		$5.520

	3.62%		8.98%		17.60%		10.97%		(0.21%	)	6.07%


	$14,066		$11,981		$10,209		$11,229		$11,973		$15,802
	1.20%		1.20%		1.19%		1.15%		1.15%		1.07%

	1.31%		1.39%		1.40%		1.41%		1.38%		1.36%
	3.89%		4.20%		5.06%		6.20%		4.85%		5.10%

	3.78%		4.01%		4.85%		5.94%		4.62%		4.81%
	118%		204%		219%		271%		355%		244%

Financial highlights
Delaware Corporate Bond Fund Institutional Class

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 income²
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Net realized gain
Total dividends and distributions

Net asset value, end of period

Total return³

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
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly
Portfolio turnover

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.050		$6.090		$5.470		$5.240		$5.520		$5.480


	0.131		0.283		0.329		0.327		0.293		0.315
	0.092		0.268		0.641		0.225		(0.273	)	0.056
	0.223		0.551		0.970		0.552		0.020		0.371


	(0.157	)	(0.320	)	(0.350	)	(0.322	)	(0.300	)	(0.331	)
	(0.136	)	(0.271	)	—		—		—		—
	(0.293	)	(0.591	)	(0.350	)	(0.322	)	(0.300	)	(0.331	)

	$5.980		$6.050		$6.090		$5.470		$5.240		$5.520

	3.88%		9.52%		18.40%		11.53%		0.10%		6.81%


	$368,671		$466,660		$357,801		$50,235		$205,197		$180,631
	0.70%		0.70%		0.69%		0.65%		0.65%		0.57%

	0.71%		0.79%		0.80%		0.81%		0.78%		0.76%
	4.39%		4.70%		5.56%		6.70%		5.35%		5.60%

	4.38%		4.61%		5.45%		6.54%		5.22%		5.41%
	118%		204%		219%		271%		355%		244%

Financial highlights
Delaware Extended Duration 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 income²

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return³

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.380		$6.440		$5.600		$5.210		$5.460		$5.410


	0.151		0.318		0.348		0.344		0.296		0.306
	0.551		0.268		0.850		0.385		(0.245	)	0.065
	0.702		0.586		1.198		0.729		0.051		0.371


	(0.166	)	(0.329	)	(0.358	)	(0.339	)	(0.301	)	(0.321	)
	(0.266	)	(0.317	)	—		—		—		—
	(0.432	)	(0.646	)	(0.358	)	(0.339	)	(0.301	)	(0.321	)

	$6.650		$6.380		$6.440		$5.600		$5.210		$5.460

	11.35%		9.74%		22.00%		15.17%		0.83%		6.82%


	$397,559		$352,060		$275,312		$184,538		$163,372		$180,853
	0.95%		0.95%		0.94%		0.90%		0.90%		0.88%

	1.04%		1.12%		1.18%		1.29%		1.23%		1.20%
	4.63%		5.07%		5.77%		7.03%		5.42%		5.44%

	4.54%		4.90%		5.53%		6.64%		5.09%		5.12%
	86%		147%		149%		234%		443%		276%

Financial highlights
Delaware Extended Duration Bond Fund Class B

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 income²

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return³

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹				7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.370			$6.430		$5.590		$5.200		$5.450		$5.410


	0.127			0.271		0.301		0.307		0.254		0.264
	0.550			0.268		0.852		0.384		(0.244	)	0.054
	0.677			0.539		1.153		0.691		0.010		0.318


	(0.141	)		(0.282	)	(0.313	)	(0.301	)	(0.260	)	(0.278	)
	(0.266	)		(0.317	)	—		—		—		—
	(0.407	)		(0.599	)	(0.313	)	(0.301	)	(0.260	)	(0.278	)

	$6.640			$6.370		$6.430		$5.590		$5.200		$5.450

	10.96%			8.93%		21.13%		14.33%		0.08%		5.84%


	$2,132			$2,219		$3,464		$3,992		$4,718		$5,959
	1.70%			1.70%		1.69%		1.65%		1.65%		1.63%

	1.74%			1.82%		1.88%		1.99%		1.93%		1.90%
	3.88%			4.32%		5.02%		6.28%		4.67%		4.69%

	3.84%			4.20%		4.83%		5.94%		4.39%		4.42%
	86%			147%		149%		234%		443%		276%

Financial highlights
Delaware Extended Duration Bond Fund Class C

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 income²

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return³

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹				7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.380			$6.430		$5.600		$5.210		$5.460		$5.410


	0.127			0.272		0.302		0.307		0.254		0.264
	0.550			0.277		0.841		0.385		(0.244	)	0.064
	0.677			0.549		1.143		0.692		0.010		0.328


	(0.141	)		(0.282	)	(0.313	)	(0.302	)	(0.260	)	(0.278	)
	(0.266	)		(0.317	)	—		—		—		—
	(0.407	)		(0.599	)	(0.313	)	(0.302	)	(0.260	)	(0.278	)

	$6.650			$6.380		$6.430		$5.600		$5.210		$5.460

	10.94%			9.09%		20.91%		14.32%		0.08%		6.03%


	$43,281			$24,532		$23,115		$19,120		$17,976		$20,156
	1.70%			1.70%		1.69%		1.65%		1.65%		1.63%

	1.74%			1.82%		1.88%		1.99%		1.93%		1.90%
	3.88%			4.32%		5.02%		6.28%		4.67%		4.69%

	3.84%			4.20%		4.83%		5.94%		4.39%		4.42%
	86%			147%		149%		234%		443%		276%

Financial highlights
Delaware Extended Duration Bond Fund Class R

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 income²

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return³

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹				7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.390			$6.440		$5.600		$5.210		$5.460		$5.410


	0.143			0.303		0.339		0.332		0.282		0.293
	0.551			0.278		0.845		0.385		(0.245	)	0.064
	0.694			0.581		1.184		0.717		0.037		0.357


	(0.158	)		(0.314	)	(0.344	)	(0.327	)	(0.287	)	(0.307	)
	(0.266	)		(0.317	)	—		—		—		—
	(0.424	)		(0.631	)	(0.344	)	(0.327	)	(0.287	)	(0.307	)

	$6.660			$6.390		$6.440		$5.600		$5.210		$5.460

	11.20%			9.63%		21.48%		15.08%		0.39%		6.75%


	$15,592			$10,800		$14,131		$665		$377		$250
	1.20%			1.20%		1.19%		1.15%		1.15%		1.13%

	1.34%			1.42%		1.48%		1.59%		1.53%		1.50%
	4.38%			4.82%		5.52%		6.78%		5.17%		5.19%

	4.24%			4.60%		5.23%		6.34%		4.79%		4.82%
	86%			147%		149%		234%		443%		276%

Financial highlights
Delaware Extended Duration Bond Fund Institutional Class

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 income²

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return³

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$6.370		$6.430		$5.590		$5.200		$5.450		$5.410


	0.159		0.332		0.364		0.356		0.309		0.320
	0.551		0.269		0.849		0.385		(0.244	)	0.055
	0.710		0.601		1.213		0.741		0.065		0.375


	(0.174	)	(0.344	)	(0.373	)	(0.351	)	(0.315	)	(0.335	)
	(0.266	)	(0.317	)	—		—		—		—
	(0.440	)	(0.661	)	(0.373	)	(0.351	)	(0.315	)	(0.335	)

	$6.640		$6.370		$6.430		$5.590		$5.200		$5.450

	11.51%		10.01%		22.33%		15.48%		1.09%		6.90%


	$210,929		$124,076		$49,310		$26,223		$36,494		$65,537
	0.70%		0.70%		0.69%		0.65%		0.65%		0.63%

	0.74%		0.82%		0.88%		0.99%		0.93%		0.90%
	4.88%		5.32%		6.02%		7.28%		5.67%		5.69%

	4.84%		5.20%		5.83%		6.94%		5.39%		5.42%
	86%		147%		149%		234%		443%		276%

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund
January 31, 2012 (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 Diversified Floating Rate Fund, Delaware Extended Duration Bond Fund, and Delaware High Yield Opportunities Fund. These financial statements and the related notes pertain to Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund (each, a Fund or collectively, the Funds). The Trust is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, 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 B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months. Class R and Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.

The investment objective of the Funds is to seek to provide investors with total return.

1. Significant Accounting Policies

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

Security Valuation — Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are generally valued at the last quoted sales price on the valuation date. Short-term debt securities are valued at market value. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities and credit default swap (CDS) contracts are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Investment company securities are valued at net asset value per share. Foreign currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts are valued at

the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each 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. Each 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 each Fund values its securities, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the Funds may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).

Federal Income Taxes — No provision for federal income taxes has been made as the Funds intend to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken on federal income tax returns for all open tax years (July 31, 2008 – July 31, 2011), and has concluded that no provision for federal income tax is required in the Funds’ financial statements.

Class Accounting — Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets each Fund. Realized and unrealized gains (loss) on investments are allocated to the various classes of each 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 Funds may purchase certain U.S. government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Funds’ custodian or a third party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on January 31, 2012.

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

1. Significant Accounting Policies (continued)

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

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

Other — Expenses directly attributable to a Fund are charged directly to that 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 debt securities are amortized to interest income over the lives of the respective securities. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. Withholding taxes on foreign interest have been recorded in accordance with each Fund’s understanding of the applicable country’s tax rules and rates. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

Each 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 six months ended January 31, 2012.

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

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
	$227		$148

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

In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee which is calculated based on each Fund’s average daily net assets as follows:

	Delaware			Delaware
	Corporate			Extended Duration
	Bond Fund			Bond Fund
On the first $500 million		0.500	%		0.550	%
On the next $500 million		0.475	%		0.500	%
On the next $1.5 billion		0.450	%		0.450	%
In excess of $2.5 billion		0.425	%		0.425	%

Effective November 28, 2011, DMC has contractually agreed through November 28, 2012 to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to prevent total annual operating expenses (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings and liquidations (collectively, nonroutine expenses)) from exceeding the following percentages of each Fund’s average daily net assets. These waivers and reimbursements may only be terminated by agreement of the Manager and the Funds.

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
	0.69%		0.70%

Prior to November 28, 2011, each Fund had a contractual waiver of 0.70%.

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments^® Family of Funds at the

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

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

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 January 31, 2012, the Funds were charged for these services as follows:

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
	$23,257		$15,163

DSC also provides dividend disbursing and transfer agency services. The Funds pay DSC a monthly asset-based fee for these services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.30% of the average daily net assets of the Class A shares, 1.00% of the average daily net assets of the Class B and Class C shares and 0.60% of the average daily net assets of Class R shares. Institutional Class shares pay no distribution and service expenses. DDLP has contracted to limit the Class A and Class R shares’ 12b-1 fees for each Fund through November 28, 2012 to no more than 0.25% and 0.50% of their respective average daily net assets.

At January 31, 2012, each Fund had liabilities payable to affiliates as follows:

	Delaware			Delaware
	Corporate			Extended Duration
	Bond Fund			Bond Fund
Investment management fees payable to DMC		$	395,085		$	255,231
Dividend disbursing, transfer agent and fund accounting oversight fees and other expenses payable to DSC			23,809			15,483
Distribution fees payable to DDLP			244,577			122,475
Other expenses payable to DMC and affiliates*			23,537			19,735

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

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

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
	$13,525		$8,921

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

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
	$76,889		$62,789

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

	Delaware			Delaware
	Corporate			Extended Duration
	Bond Fund			Bond Fund
Class A		$	0		$	442
Class B			2,105			598
Class C			2,962			3,392

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

3. Investments

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

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
Purchases other than U.S. government securities	$	924,480,989		$	534,357,588
Purchases of U.S. government securities		168,068,386			92,590,665
Sales other than U.S. government securities		925,785,540			424,140,802
Sales of U.S. government securities		156,705,762			82,214,737

	Delaware			Delaware
	Corporate			Extended Duration
	Bond Fund			Bond Fund
Cost of investments	$	1,002,664,553			$	643,079,003
Aggregate unrealized appreciation	$	54,737,709			$	45,671,116
Aggregate unrealized depreciation		(14,139,081	)			(4,995,687	)
Net unrealized appreciation	$	40,598,628			$	40,675,429

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

3. Investments (continued)

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

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

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

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

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

The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of January 31, 2012:

	Delaware Corporate Bond Fund
	Level 1			Level 2			Level 3		Total
Commercial Mortgage-
Backed Security	$	—		$	240,138		$	—	$	240,138
Common Stock		3,954			—			—		3,954
Corporate Debt		—			894,273,440			4,540,000		898,813,440
Foreign Debt		—			47,358,432			—		47,358,432
Municipal Bonds		—			46,804,267			—		46,804,267
U.S. Treasury Obligations		—			11,677,907			—		11,677,907
Preferred Stock		7,344,232			4,452,210			—		11,796,442
Purchased Options		—			—			410,936		410,936
Short-Term Investments		—			25,268,253			—		25,268,253
Securities Lending Collateral		—			889,412			—		889,412
Total	$	7,348,186		$	1,030,964,059		$	4,950,936	$	1,043,263,181

Foreign Currency
Exchange Contracts	$	—		$	(598,277	)	$	—	$	(598,277	)
Futures Contracts	$	(1,026,861	)	$	—		$	—	$	(1,026,861	)
Swap Contracts	$	—		$	(526,787	)	$	—	$	(526,787	)

	Delaware Extended Duration Bond Fund
	Level 1			Level 2			Level 3		Total
Commercial Mortgage-
Backed Securities	$	—		$	111,474		$	—	$	111,474
Corporate Debt		—			571,865,566			2,965,000		574,830,566
Foreign Debt		—			24,346,525			—		24,346,525
Municipal Bonds		—			36,709,608			—		36,709,608
U.S. Treasury Obligations		—			15,420,858			—		15,420,858
Preferred stock		2,582,120			3,435,138			—		6,017,258
Purchased Options		—			—			164,374		164,374
Short-Term Investments		—			23,848,393			—		23,848,393
Securities Lending Collateral		—			2,305,376			—		2,305,376
Total	$	2,582,120		$	678,042,938		$	3,129,374	$	683,754,432

Foreign Currency
Exchange Contracts	$	—		$	(313,793	)	$	—	$	(313,793	)
Futures Contracts	$	1,208,281		$	—		$	—	$	1,208,281
Swap Contracts	$	—		$	(398,586	)	$	—	$	(398,586	)

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

3. Investments (continued)

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

	Delaware Corporate Bond Fund
	Corporate		Foreign			Purchased
	Debt		Debt			Options			Total
Balance as of 7/31/11	$	—	$	3,855,450		$	1,777,129		$	5,632,579
Purchases		4,540,000		—			—			4,540,000
Sales		—		(3,858,470	)		—			(3,858,470	)
Net realized gain		—		289,900			—			289,900
Net change in unrealized
appreciation (depreciation)		—		(286,880	)		(1,366,193	)		(1,653,073	)
Balance as of 1/31/12	$	4,540,000	$	—		$	410,936		$	4,950,936

Net change in unrealized
appreciation (depreciation)
from investments still held
as of 1/31/12	$	—	$	—		$	(1,366,193	)	$	(1,366,193	)


	Swap
	Contracts
Balance as of 7/31/11	$	169,242
Sales		—
Net realized loss		(486,725	)
Net change in unrealized
appreciation (depreciation)		317,483
Balance as of 1/31/12	$	—

Net change in unrealized
appreciation (depreciation)
from investments still held
as of 1/31/12	$	—

	Delaware Extended Duration Bond Fund
	Corporate		Foreign			Purchased
	Debt		Debt			Options			Total
Balance as of 7/31/11	$	—	$	1,496,277		$	710,852		$	2,207,128
Purchases		2,965,000		—			—			2,965,000
Sales		—		(1,497,449	)		—			(1,497,449	)
Net realized gain		—		112,509			—			112,509
Net change in unrealized
appreciation (depreciation)		—		(111,337	)		(546,478	)		(657,814	)
Balance as of 1/31/12	$	2,965,000	$	—		$	164,374		$	3,129,374

Net change in unrealized
Appreciation (depreciation)
from investments still held
as of 1/31/12	$	—	$	—		$	(546,478	)	$	(546,478	)


	Swap
	Contracts
Balance as of 7/31/11	$	75,554
Sales		—
Net realized loss		(217,282	)
Net change in unrealized
appreciation (depreciation)		141,728
Balance as of 1/31/12	$	—

Net change in unrealized
appreciation (depreciation)
from investments still held
as of 1/31/12	$	—

During the six months ended January 31, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Funds. Each Fund’s policy is to recognize transfers between levels at the end of the reporting period.

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

4. Dividend and Distribution Information

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

	Delaware				Delaware
	Corporate				Extended Duration
	Bond Fund				Bond Fund
	Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended
	1/31/12*		7/31/11		1/31/12*		7/31/11
Ordinary income	$	34,119,785	$	88,886,401	$	28,566,994	$	32,799,733
Long-term capital gains		10,349,555		7,299,940		12,777,339		9,599,043
Total	$	44,469,340	$	96,186,341	$	41,344,333	$	42,398,776

*Tax information for the six months ended January 31, 2012 is an estimate and the tax character of dividends and distributions may be redesigned 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 January 31, 2012, the estimated components of net assets on a tax basis were as follows:

	Delaware				Delaware
	Corporate			Extended Duration
	Bond Fund			Bond Fund
Shares of beneficial interest	$	999,923,049		$	612,162,139
Undistributed ordinary income		13,489,936			19,572,610
Distributions payable		(1,249,836	)		(830,313	)
Other temporary differences		(661,066	)		(344,556	)
Unrealized appreciation		37,124,221			38,932,646
Net assets	$	1,048,626,304		$	669,492,526

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

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

	Delaware			Delaware
	Corporate			Extended Duration
	Bond Fund			Bond Fund
Undistributed net investment income	$	4,196,771		$	1,356,884
Accumulated net realized gain		(4,196,771	)		(1,356,884	)

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware				Delaware
	Corporate				Extended Duration
	Bond Fund				Bond Fund
	Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended
	1/31/12		7/31/11		1/31/12		7/31/11
Shares sold:
Class A	25,529,313		25,899,488		12,579,202		24,425,937
Class B	12,903		16,369		3,912		8,189
Class C	8,005,641		6,055,130		2,798,664		1,814,217
Class R	1,120,346		1,246,714		992,734		2,008,490
Institutional Class	24,568,180		49,659,946		15,767,431		17,772,089

Shares issued upon reinvestment of dividends and distributions:
Class A	2,875,927		5,245,037		3,836,687		4,583,991
Class B	36,692		96,453		17,363		35,777
Class C	928,491		1,594,147		296,845		309,766
Class R	106,984		165,556		139,109		231,677
Institutional Class	2,264,892		5,813,001		1,741,382		1,164,018
	65,449,369		95,791,841		38,173,329		52,354,151

Shares repurchased:
Class A	(11,991,021	)	(33,592,983	)	(11,812,081	)	(16,621,429	)
Class B	(219,424	)	(615,775	)	(48,494	)	(234,753	)
Class C	(2,227,870	)	(8,397,145	)	(431,877	)	(1,871,364	)
Class R	(855,551	)	(1,109,000	)	(480,750	)	(2,743,122	)
Institutional Class	(42,311,663	)	(37,098,717	)	(5,223,201	)	(7,142,279	)
	(57,605,529	)	(80,813,620	)	(17,996,403	)	(28,612,947	)
Net increase	7,843,840		14,978,221		20,176,926		23,741,204

For the six months ended January 31, 2012 and the year ended July 31, 2011, the following shares and values were converted from Class B to Class A shares. The amounts are included in Class B redemptions and Class A subscriptions in the tables on previous page and the statements of changes in net assets.

	Six Months Ended				Year Ended
	1/31/12				7/31/11
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Corporate Bond Fund	91,281	91,488	$	544,387	233,042	232,847	$	1,383,913
Delaware Extended Duration Fund	7,345	7,341		47,997	56,970	56,858		353,603

7. Line of Credit

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

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

8. Derivatives

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

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

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

8. Derivatives (continued)

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

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

Options Contracts — During the six months ended January 31, 2012, each Fund entered into options contracts in the normal course of pursuing its investment objective. The Funds may buy or write options contracts for any number of reasons, including without limitation: to manage the Funds’ exposure to changes in securities prices and foreign currencies; as an efficient means of adjusting the Funds’ overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. The Funds may buy or write call or put options on securities, futures, swaps, “swaptions”, financial indices, and foreign currencies. When the Funds buy an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the options purchased. When the Funds write an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market

value of the options written. Premiums received from writing options that expire unexercised are treated by the Funds on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Funds have a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Funds. Each Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. When writing options, each Fund is subject to minimal counterparty risk because the counterparty is only obligated to pay premiums and does not bear the market risk of an unfavorable market change.

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

	Delaware					Delaware
	Corporate					Extended Duration
	Bond Fund					Bond Fund
	Number of					Number of
	contracts		Premiums			contracts		Premiums
Options outstanding at July 31, 2011	34		$	22,887		17		$	11,643
Options written	347			219,886		450			186,459
Options expired	(67	)		(96,977	)	(33	)		(48,890	)
Options terminated in closing
purchase transactions	(314	)		(145,796	)	(434	)		(149,212	)
Options outstanding at January 31, 2012	—		$	—		—		$	—

Swap Contracts – Each Fund enters into inflation swap contracts and CDS contracts in the normal course of pursuing its investment objective. Each Fund may use inflation swaps to hedge the inflation risk in nominal bonds, thereby creating synthetic inflation-indexed bonds. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets.

Inflation Swaps. Inflation swap agreements involve commitments to pay a regular stream of inflation-indexed cash payments in exchange for receiving a stream of nominal interest payments (or vice versa), where both payment streams are based on notional amounts. The nominal interest payments may be based on either a fixed interest rate or variable interest rate such as London Interbank Offered Rate (LIBOR). The change in value of swap contracts outstanding, if any, is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded on maturity or termination of the swap contract. Each Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the index swap contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

8. Derivatives (continued)

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

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

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
	$526,787		$398,586

The Funds had posted cash collateral for open swap contracts as follows:

	Delaware	Delaware
	Corporate	Extended Duration
	Bond Fund	Bond Fund
Cash	$440,000	$270,000

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

	Delaware	Delaware
	Corporate	Extended Duration
	Bond Fund	Bond Fund
EUR	5,625,000	4,215,000
USD	12,857,000	7,079,000

The Funds received collateral for open swap contracts as follows:

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
Cash	$	110,000	$	50,000
Securities		1,512,000		643,000

As disclosed in the footnotes to the statements of net assets, at January 31, 2012, the notional value of the protection sold for each Fund are listed below, which reflects the maximum potential amount the Funds would have been required to make as a seller of credit protection if a credit event had occurred. The quoted market prices and resulting market values for CDS contracts on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative if the swap agreement has been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.

Delaware		Delaware
Corporate		Extended Duration
Bond Fund		Bond Fund
$	6,400,000	$	3,700,000

At January 31, 2012, the net unrealized appreciation of the protection sold for each Fund was as follows:

Delaware		Delaware
Corporate		Extended Duration
Bond Fund		Bond Fund
$	191,883	$	112,779

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

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

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

8. Derivatives (continued)

Fair values of derivative instruments as of January 31, 2012 was as follows:

	Delaware Corporate Bond Fund
	Asset Derivatives			Liability Derivatives
	Statements of Net			Statements of Net
	Assets Location	Fair Value		Assets Location	Fair Value
Forward currency exchange contracts (Foreign currency
exchange contracts)	Receivables and other assets net of other liabilities	$	54,428	Receivables and other assets net of other liabilities	$	(652,705	)
Interest rate contracts
(Futures contracts)	Receivables and other assets net of other liabilities		—	Receivables and other assets net of other liabilities		(1,026,861	)
Credit contracts
(Swaps contracts)	Receivables and other assets net of other liabilities		—	Receivables and other assets net of liabilities		(526,787	)
Total		$	54,428		$	(2,206,353	)

	Delaware Extended Duration Bond Fund
	Asset Derivatives			Liability Derivatives
	Statements of Net			Statements of Net
	Assets Location	Fair Value		Assets Location	Fair Value
Forward currency
exchange contracts
(Foreign currency
exchange contracts)	Other liabilities net of receivables and other assets	$	25,989	Other liabilities net of receivables and other assets	$(339,782	)
Interest rate contracts
(Futures contracts)	Other liabilities net of receivables and other assets		1,208,281	Other liabilities net of receivables and other assets	—
Credit contracts
(Swaps contracts)	Other liabilities net of receivables and other assets		—	Other liabilities net of receivables and other assets	(398,586	)
Total		$	1,234,270		$(738,368	)

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

8. Derivatives (continued)

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

	Delaware Corporate Bond Fund
		Realized Gain				Change in Unrealized
		(Loss) on				Appreciation
		Derivatives				(Depreciation)
	Location of Gain (Loss) on	Recognized in				on Derivatives
	Derivatives Recognized in Income	Income				Recognized in Income
Forward Currency
exchange contracts
(Foreign currency
exchange contracts)	Net realized loss on foreign currency exchange contracts and net change in unrealized appreciation (depreciation)		$	(89,899	)		$	(764,345	)
Interest rate contracts
(Futures contracts)	Net realized gain on futures contracts and net change in unrealized appreciation (depreciation)			3,266,898				(315,274	)
Equity contracts
(Options written)	Net realized loss on options written and net change in unrealized appreciation (depreciation)			(119,191	)			17,913
Interest and credit contracts
(Swaps contracts)	Net realized gain on swap contracts and net change in unrealized appreciation (depreciation)			1,162,227				(2,474,604	)
Total			$	4,220,035			$	(3,536,310	)

	Delaware Extended Duration Bond Fund
		Realized Gain				Change in Unrealized
		(Loss) on				Appreciation
		Derivatives				(Depreciation)
	Location of Gain (Loss) on	Recognized in				on Derivatives
	Derivatives Recognized in Income	Income				Recognized in Income
Forward Currency
exchange contracts
(Foreign currency
exchange contracts)	Net realized gain on foreign currency exchange contracts and net change in unrealized appreciation (depreciation)		$	344,945			$	(383,108	)
Interest rate contracts
(Futures contracts)	Net realized gain on futures contracts and net change in unrealized appreciation (depreciation)			21,046,404				(132,064	)
Equity contracts
(Options written)	Net realized loss on options written and net change in unrealized appreciation (depreciation)			(225,468	)			8,757
Interest and credit contracts
(Swaps contracts)	Net realized gain on swap contracts and net change in unrealized appreciation (depreciation)			292,094				(1,259,480	)
Total			$	21,457,975			$	(1,765,895	)

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

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

8. Derivatives (continued)

	Delaware Corporate Bond Fund
	Asset Derivative		Liability Derivative
	Volume		Volume
Foreign currency exchange contracts (average cost)	USD	5,720,866	USD	23,047,319
Futures contracts (average notional value)		93,551,903		101,355,379
Options contracts (average notional value)		987,632		83,242
Swap contracts (average notional value)		8,845,197		52,978,646
		—	EUR	10,349,441

	Delaware Extended Duration Bond Fund
	Asset Derivative		Liability Derivative
	Volume		Volume
Foreign currency exchange contracts (average cost)	USD	2,553,847	USD	12,489,313
Futures contracts (average notional value)		180,618,905		70,143,470
Options contracts (average notional value)		424,088		43,777
Swap contracts (average notional value)		9,815,276		27,383,669
			EUR	6,048,543

9. Securities Lending

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

other money market securities and in repurchase agreements collateralized by such securities, provided that the Collective Trust will generally have a dollar-weighted average portfolio maturity of 60 days or less. Effective April 20, 2009, BNY Mellon transferred the assets of the Funds’ previous collateral investment pool other than cash and assets with a maturity of one business day or less to the BNY Mellon SL DBT II Liquidating Fund (Liquidating Fund), effectively bifurcating the previous collateral investment pool. Each Fund’s exposure to the Liquidating Fund is expected to decrease as the Liquidating Fund’s assets mature or are sold. In October 2008, BNY Mellon transferred certain distressed securities from the previous collateral investment pool into the Mellon GSL Reinvestment Trust II. Each 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 Funds or, at the discretion of the lending agent, replace the loaned securities. The Funds continue to record dividends or interest, as applicable, on the securities loaned and are subject to changes in value of the securities loaned that may occur during the term of the loan. The Funds have the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Funds receive loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Funds, the security lending agent and the borrower. The Funds record security lending income net of allocations to the security lending agent and the borrower.

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

At January 31, 2012, the values of securities on loan and the values of invested collateral for each Fund is presented below, for which cash collateral was received and invested in accordance with the Lending Agreement. These investments are presented on the statements of net assets under the caption “Securities Lending Collateral”.

	Delaware		Delaware
	Corporate		Extended Duration
	Bond Fund		Bond Fund
Values of securities on loan	$	1,084,683		$	2,342,395
Values of invested collateral		889,412			2,305,376

Notes to financial statements
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

10. Credit and Market Risk

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

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

Each Fund invests in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s and Baa3 by Moody’s Investor Services, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.

Each Fund invests in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the 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 effect on the Funds’ yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Funds may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.

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

11. Contractual Obligations

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

12. Subsequent Events

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

Other Fund information
(Unaudited)
Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund

Board Consideration of Delaware Corporate Bond Fund and Delaware Extended
Duration Bond Fund Investment Advisory Agreements

At a meeting held on August 16-17, 2011 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for the Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished specifically in connection with the renewal of the Investment Advisory Agreements with Delaware Management Company (“DMC”), which included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Funds, the costs of such services to the Funds, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2011 and included independent historical and comparative reports provided by Lipper. The Lipper reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

In considering information relating to the approval of each Fund’s advisory agreement, the independent Trustees received assistance and advice from and met separately with independent legal counsel to the independent Trustees. Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.

Nature, Extent and Quality of Service. The Board considered the services provided by Delaware Investments to the Funds and their shareholders. In reviewing the nature, extent and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of each Fund, compliance of portfolio managers with the investment policies, strategies and restrictions for each Fund, compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Investments Family of Funds complex and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of the Funds’ investment advisor and the emphasis placed on research in the investment process. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board noted that in July 2011 Management implemented measures to reduce overall costs and improve transfer agent and shareholder servicing functions through outsourcing. It is expected that such measures will improve the quality and lower the cost of delivering transfer agent and shareholder servicing services to the

Board Consideration of Delaware Corporate Bond Fund and Delaware Extended
Duration Bond Fund Investment Advisory Agreements (continued)

Funds. The Board once again noted the benefits provided to Fund shareholders through 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 the same Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Investment Performance. The Board placed significant emphasis on the investment performance of the Funds in view of its importance to shareholders. Although the Board gave appropriate consideration to performance reports and discussions with portfolio managers at Investment Committee meetings throughout the year, the Board gave particular weight to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for each Fund showed the investment performance of its Class A shares in comparison to a group of similar funds as selected by Lipper (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past one-, three-, five- and ten-year periods, as applicable, ended March 31, 2011. The Board’s objective is that each Fund’s performance for the periods considered be at or above the median of its Performance Universe. The following paragraphs summarize the performance results for the Funds and the Board’s view of such performance.

Delaware Corporate Bond Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional BBB-rated corporate debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the three-, five- and ten-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the one-year period was in the second quartile. The Board was satisfied with performance.

Delaware Extended Duration Bond Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional BBB-rated corporate debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, three-, five- and ten-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.

also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and expense ratios of a group of similar funds as selected by Lipper (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) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Lipper total expenses, for comparative consistency, were shown by Lipper for Class A shares and comparative total expenses including 12b-1 and non 12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit each Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraphs summarize the expense results for the Funds and the Board’s view of such expenses.

Delaware Corporate Bond Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating total expenses, the Board considered fee waivers in place through November 2011 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Delaware Extended Duration Bond Fund — The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

Management Profitability. The Board considered the level of profits realized by Delaware Investments in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the individual 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. Management stated that the level of profits of Delaware Investments, to a certain extent, reflect recent operational cost savings and efficiencies initiated by Delaware Investments. 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 Securities and Exchange Commission initiatives. The Board also considered 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

Board Consideration of Delaware Corporate Bond Fund and Delaware Extended
Duration Bond Fund Investment Advisory Agreements (continued)

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. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of Delaware Investments.

Economies of Scale. The Trustees considered whether economies of scale are realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed the standardized advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case on all assets when the asset levels specified are exceeded. The Board noted that the fee under each Fund’s management contract fell within the standard structure. The Board also noted that the Delaware Corporate Bond Fund’s assets exceeded the first breakpoint level. The Board believed that, given the extent to which economics of scale might be realized by the advisor and its affiliates, the schedule of fees under the Investment Advisory Agreement provides a sharing of benefits with the Fund and its shareholders. With respect to the Delaware Extended Duration Bond Fund, although the Fund has not reached a size at which it can take advantage of breakpoints, the Board recognized that the fees were structured so that when the Fund grows, economies of scale may be shared.

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 Trust) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Trust upon recommendation of the Audit Committee selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Trust for the fiscal year ended July 31, 2010. During the fiscal years ended July 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Trust did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trust and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trust nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Trust’s financial statements.

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 Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Frances A. Sevilla-Sacasa Executive Advisor to Dean, University of Miami School of Business Administration Coral Gables, FL	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

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 Corporate Bond Fund and Delaware Extended Duration Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

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

Each 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. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at www.sec.gov. In addition, a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on the Funds’ website at www.delawareinvestments.com. Each Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.

Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at www.delawareinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

100

Semiannual report

Delaware High-Yield Opportunities Fund

January 31, 2012

Fixed income mutual fund

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and, if available, its summary prospectus, which may be obtained by visiting www.delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

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

Experience Delaware Investments

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 High-Yield Opportunities 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

Investments in Delaware High-Yield Opportunities 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/sector allocation	3
Statement of net assets	4
Statement of operations	15
Statements of changes in net assets	16
Financial highlights	18
Notes to financial statements	28
Other Fund information	39
About the organization	44

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

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

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the 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 six-month period from August 1, 2011 to January 31, 2012

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 six-month period from August 1, 2011 to January 31, 2012.

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 High-Yield Opportunities Fund
Expense analysis of an investment of $1,000

	Beginning			Ending					Expenses
	Account Value			Account Value			Annualized		Paid During Period
	8/1/11			1/31/12			Expense Ratio		8/1/11 to 1/31/12*
Actual Fund return
Class A		$	1,000.00		$	996.80		1.11%		$	5.57
Class B			1,000.00			995.60		1.81%			9.08
Class C			1,000.00			995.70		1.81%			9.08
Class R			1,000.00			995.80		1.31%			6.57
Institutional Class			1,000.00			998.20		0.81%			4.07
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,019.56		1.11%		$	5.63
Class B			1,000.00			1,016.04		1.81%			9.17
Class C			1,000.00			1,016.04		1.81%			9.17
Class R			1,000.00			1,018.55		1.31%			6.65
Institutional Class			1,000.00			1,021.06		0.81%			4.12

*“Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

Security type/sector allocation
Delaware High-Yield Opportunities Fund	As of January 31, 2012

Security type/sector	Percentage of net assets
Corporate Bonds	89.25	%
Automotive	3.75	%
Banking	3.31	%
Basic Industry	12.58	%
Capital Goods	5.36	%
Consumer Cyclical	5.65	%
Consumer Non-Cyclical	3.31	%
Energy	11.16	%
Financial Services	2.23	%
Healthcare	5.09	%
Insurance	3.12	%
Media	6.47	%
Services	10.31	%
Technology & Electronics	5.81	%
Telecommunications	9.08	%
Utilities	2.02	%
Senior Secured Loans	3.39	%
Common Stock	0.35	%
Preferred Stock	1.73	%
Warrant	0.00	%
Repurchase Agreement	4.17	%
Securities Lending Collateral	0.83	%
Total Value of Securities	99.72	%
Obligation to Return Securities Lending Collateral	(0.92	%)
Receivables and Other Assets Net of Other Liabilities	1.20	%
Total Net Assets	100.00	%

Statement of net assets
Delaware High-Yield Opportunities Fund	January 31, 2012 (Unaudited)

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds – 89.25%
Automotive – 3.75%
	American Axle & Manufacturing
	7.75% 11/15/19	$	1,850,000	$	1,924,000
	7.875% 3/1/17		784,000		809,480
	ArvinMeritor
	8.125% 9/15/15		2,019,000		1,955,906
	10.625% 3/15/18		1,257,000		1,266,428
#	Chrysler Group 144A 8.25% 6/15/21		8,425,000		8,088,000
	Ford Motor Credit 12.00% 5/15/15		1,971,000		2,473,605
#	International Automotive Components Group 144A
	9.125% 6/1/18		1,860,000		1,683,300
#	Jaguar Land Rover 144A 8.125% 5/15/21		2,740,000		2,698,900
					20,899,619
Banking – 3.31%
	BAC Capital Trust VI 5.625% 3/8/35		4,740,000		3,986,776
•	Fifth Third Capital Trust IV 6.50% 4/15/37		4,141,000		4,130,648
•#	HBOS Capital Funding 144A 6.071% 6/29/49		5,845,000		4,266,850
•	Regions Financing Trust II 6.625% 5/15/47		6,720,000		6,048,000
					18,432,274
Basic Industry – 12.58%
*	AK Steel 7.625% 5/15/20		2,321,000		2,303,593
#	Algoma Acquisition 144A 9.875% 6/15/15		2,694,000		2,330,310
#	APERAM 144A 7.75% 4/1/18		2,095,000		1,801,700
#	Cemex Espana Luxembourg 144A 9.25% 5/12/20		5,252,000		4,464,199
#	FMG Resources August 2006 144A
	6.875% 2/1/18		1,960,000		2,004,100
	7.00% 11/1/15		1,846,000		1,915,225
	Headwaters 7.625% 4/1/19		2,706,000		2,530,110
	Hexion US Finance 9.00% 11/15/20		1,413,000		1,356,480
	Immucor 11.125% 8/15/19		2,365,000		2,577,850
#	Ineos Group Holdings 144A 8.50% 2/15/16		6,035,000		5,461,674
	Interface 7.625% 12/1/18		1,735,000		1,878,138
#	International Wire Group Holdings 144A
	9.75% 4/15/15		2,060,000		2,104,208
#	JMC Steel Group 144A 8.25% 3/15/18		2,777,000		2,860,310
#	Kinove German Bondco 144A 9.625% 6/15/18		2,665,000		2,665,000
#	Longview Fibre Paper & Packaging 144A
	8.00% 6/1/16		2,735,000		2,875,169

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Basic Industry (continued)
#	LyondellBasell Industries 144A 6.00% 11/15/21	$	1,390,000	$	1,518,575
#	MacDermid 144A 9.50% 4/15/17		2,872,000		2,943,800
#	Masonite International 144A 8.25% 4/15/21		2,635,000		2,707,463
#	Millar Western Forest Products 144A 8.50% 4/1/21		1,965,000		1,483,575
	Momentive Performance Materials 9.00% 1/15/21		4,622,000		4,206,019
#	Murray Energy 144A 10.25% 10/15/15		2,162,000		2,194,430
	Norcraft 10.50% 12/15/15		2,891,000		2,695,858
#	Nortek 144A 8.50% 4/15/21		2,680,000		2,559,400
	Ply Gem Industries 13.125% 7/15/14		2,253,000		2,140,350
	Polypore International 7.50% 11/15/17		2,407,000		2,539,385
=@	PT Holdings 12.431% 8/27/12		1,027,849		467,671
	Ryerson
	•7.804% 11/1/14		844,000		784,920
	12.00% 11/1/15		1,939,000		1,968,085
#	Taminco Global Chemical 144A 9.75% 3/31/20		2,635,000		2,700,875
					70,038,472
Capital Goods – 5.36%
	Anixter 10.00% 3/15/14		971,000		1,062,031
	Berry Plastics
	9.75% 1/15/21		3,503,000		3,678,150
	10.25% 3/1/16		1,699,000		1,703,248
#	DAE Aviation Holdings 144A 11.25% 8/1/15		2,517,000		2,642,850
	Kratos Defense & Security Solutions 10.00% 6/1/17		2,650,000		2,815,625
	Mueller Water Products 7.375% 6/1/17		2,721,000		2,612,160
	Pregis 12.375% 10/15/13		2,884,000		2,768,640
#	Reynolds Group Issuer 144A
	8.25% 2/15/21		820,000		781,050
	9.00% 4/15/19		3,811,000		3,811,000
	9.875% 8/15/19		4,850,000		4,959,125
#	Sealed Air 144A
	8.125% 9/15/19		530,000		589,625
	8.375% 9/15/21		740,000		836,200
	TriMas 9.75% 12/15/17		1,436,000		1,579,600
					29,839,304
Consumer Cyclical – 5.65%
	Brown Shoe 7.125% 5/15/19		2,160,000		2,084,400
	Burlington Coat Factory Warehouse
	10.00% 2/15/19		4,214,000		4,024,369

Statement of net assets
Delaware High-Yield Opportunities Fund

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Consumer Cyclical (continued)
	CKE Restaurants 11.375% 7/15/18	$	1,811,000	$	2,064,540
	Dave & Buster’s 11.00% 6/1/18		2,901,000		3,071,434
	DineEquity 9.50% 10/30/18		3,232,000		3,539,040
	Express 8.75% 3/1/18		1,395,000		1,541,475
#	Icon Health & Fitness 144A 11.875% 10/15/16		946,000		749,705
*	Levi Strauss 7.625% 5/15/20		1,300,000		1,365,000
	Michaels Stores
	11.375% 11/1/16		845,000		899,841
	13.00% 11/1/16		1,640,000		1,754,636
	OSI Restaurant Partners 10.00% 6/15/15		2,145,000		2,230,800
	Quiksilver 6.875% 4/15/15		2,917,000		2,822,198
	Rite Aid 8.625% 3/1/15		2,630,000		2,643,150
	Tops Holding 10.125% 10/15/15		2,465,000		2,662,200
					31,452,788
Consumer Non-Cyclical – 3.31%
#	Armored Autogroup 144A 9.25% 11/1/18		2,673,000		2,245,320
	Dean Foods 7.00% 6/1/16		1,200,000		1,212,000
	Del Monte 7.625% 2/15/19		2,592,000		2,562,840
#	JBS USA 144A 8.25% 2/1/20		2,700,000		2,727,000
	NBTY 9.00% 10/1/18		2,859,000		3,173,489
	Pinnacle Foods Finance 10.625% 4/1/17		2,831,000		3,007,938
	Visant 10.00% 10/1/17		1,373,000		1,252,863
#	Viskase 144A 9.875% 1/15/18		2,204,000		2,264,610
					18,446,060
Energy – 11.16%
	American Petroleum Tankers 10.25% 5/1/15		1,881,000		1,951,538
	AmeriGas Finance 7.00% 5/20/22		2,000,000		2,010,000
	Antero Resources Finance 9.375% 12/1/17		2,290,000		2,524,725
#	Calumet Specialty Products Partners 144A
	9.375% 5/1/19		4,125,000		4,166,249
	Chaparral Energy 8.25% 9/1/21		4,017,000		4,227,892
	Chesapeake Energy
	6.625% 8/15/20		2,285,000		2,307,850
	6.875% 11/15/20		278,000		286,340
	7.25% 12/15/18		133,000		143,308
	Comstock Resources 7.75% 4/1/19		3,800,000		3,533,999
	Copano Energy 7.75% 6/1/18		1,381,000		1,463,860

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Energy (continued)
	Crosstex Energy 8.875% 2/15/18	$	1,622,000	$	1,767,980
	Frontier Oil 6.875% 11/15/18		2,200,000		2,266,000
#	Helix Energy Solutions Group 144A 9.50% 1/15/16		1,265,000		1,334,575
#	Hercules Offshore 144A 10.50% 10/15/17		2,219,000		2,230,095
#	Hilcorp Energy I 144A 8.00% 2/15/20		2,264,000		2,484,740
#	Kodiak Oil & Gas 144A 8.125% 12/1/19		2,400,000		2,547,000
	Laredo Petroleum 9.50% 2/15/19		2,845,000		3,122,388
	Linn Energy
	#144A 6.50% 5/15/19		865,000		877,975
	8.625% 4/15/20		1,730,000		1,928,950
#	NFR Energy 144A 9.75% 2/15/17		3,524,000		3,013,020
	Oasis Petroleum 7.25% 2/1/21		2,121,000		2,237,655
	Offshore Group Investments 11.50% 8/1/15		2,161,000		2,404,113
	Petrohawk Energy 7.25% 8/15/18		1,800,000		2,061,000
	Petroleum Development 12.00% 2/15/18		2,303,000		2,521,785
	Pioneer Drilling
	9.875% 3/15/18		2,207,000		2,361,490
	#144A 9.875% 3/15/18		980,000		1,048,600
	Quicksilver Resources 9.125% 8/15/19		2,390,000		2,342,200
	SandRidge Energy
	7.50% 3/15/21		2,506,000		2,556,120
	8.75% 1/15/20		429,000		456,885
					62,178,332
Financial Services – 2.23%
	E Trade Financial PIK 12.50% 11/30/17		1,868,000		2,171,550
•#	ILFC E-Capital Trust I 144A 4.34% 12/21/65		2,460,000		1,566,454
•#	ILFC E-Capital Trust II 144A 6.25% 12/21/65		4,420,000		3,204,500
	Nuveen Investments 10.50% 11/15/15		5,230,000		5,478,425
					12,420,929
Healthcare – 5.09%
	Accellent 10.00% 11/1/17		1,175,000		978,188
	Alere 9.00% 5/15/16		515,000		542,038
#	AMGH Merger Sub 144A 9.25% 11/1/18		2,440,000		2,586,400
	Community Health Systems
	#144A 8.00% 11/15/19		1,265,000		1,301,369
	8.875% 7/15/15		1,428,000		1,488,690
	HCA 7.50% 2/15/22		2,840,000		3,045,899

Statement of net assets
Delaware High-Yield Opportunities Fund

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Healthcare (continued)
	HealthSouth 7.75% 9/15/22	$	533,000	$	558,318
#	inVentiv Health 144A 10.00% 8/15/18		1,733,000		1,577,030
#	Kinetic Concepts 144A 10.50% 11/1/18		750,000		766,875
	Lantheus Medical Imaging 9.75% 5/15/17		3,422,000		2,763,265
	LVB Acquisition 11.625% 10/15/17		3,508,000		3,832,489
#	Multiplan 144A 9.875% 9/1/18		2,637,000		2,887,515
	Radiation Therapy Services 9.875% 4/15/17		2,278,000		1,600,295
	Radnet Management 10.375% 4/1/18		1,879,000		1,742,773
#	STHI Holding 144A 8.00% 3/15/18		2,533,000		2,700,811
					28,371,955
Insurance – 3.12%
•	American International Group 8.175% 5/15/58		4,281,000		4,173,975
•	ING Groep 5.775% 12/29/49		6,918,000		5,724,645
•#	Liberty Mutual Group 144A 7.00% 3/15/37		4,218,000		3,732,930
•	XL Group 6.50% 12/31/49		4,465,000		3,767,344
					17,398,894
Media – 6.47%
	Affinion Group 7.875% 12/15/18		2,907,000		2,500,020
#	AMC Networks 144A 7.75% 7/15/21		2,675,000		2,952,531
#	AMO Escrow 144A 11.50% 12/15/17		1,255,000		1,148,325
*	Cablevision Systems 8.00% 4/15/20		2,393,000		2,632,300
	CCO Holdings
	7.00% 1/15/19		284,000		303,170
	8.125% 4/30/20		2,199,000		2,443,639
	Clear Channel Communications 9.00% 3/1/21		2,734,000		2,392,250
	DISH DBS 6.75% 6/1/21		2,350,000		2,573,250
	Entravision Communications 8.75% 8/1/17		1,970,000		2,029,100
	MDC Partners
	11.00% 11/1/16		2,275,000		2,465,531
	#144A 11.00% 11/1/16		1,260,000		1,352,925
#	Nara Cable Funding 144A 8.875% 12/1/18		1,700,000		1,623,500
	Nexstar Broadcasting 8.875% 4/15/17		2,039,000		2,171,535
#	Ono Finance II 144A 10.875% 7/15/19		4,816,000		4,334,400
#	Univision Communications 144A 8.50% 5/15/21		1,485,000		1,447,875
#	UPC Holding 144A 9.875% 4/15/18		2,072,000		2,263,660
	Virgin Media Finance 8.375% 10/15/19		1,249,000		1,405,125
					36,039,136

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Services – 10.31%
#	ARAMARK Holdings PIK 144A 8.625% 5/1/16	$	2,055,000	$	2,121,788
	Beazer Homes USA
	9.125% 6/15/18		723,000		580,208
	9.125% 5/15/19		2,954,000		2,348,430
	Cardtronics 8.25% 9/1/18		997,000		1,099,193
	Casella Waste Systems 7.75% 2/15/19		1,571,000		1,578,855
#	Chester Downs & Marina 144A 9.25% 2/1/20		1,410,000		1,445,250
#	Delta Air Lines 144A 12.25% 3/15/15		1,931,000		2,066,170
#	Equinox Holdings 144A 9.50% 2/1/16		1,904,000		1,999,200
	Harrah’s Operating 10.00% 12/15/18		6,246,000		4,856,264
	Iron Mountain 8.375% 8/15/21		795,000		872,513
	Kansas City Southern de Mexico
	6.125% 6/15/21		850,000		922,250
	8.00% 2/1/18		1,654,000		1,854,548
	M/I Homes 8.625% 11/15/18		3,824,000		3,613,679
*	Marina District Finance 9.875% 8/15/18		830,000		780,200
	MGM Resorts International 11.375% 3/1/18		6,026,000		6,944,964
	Peninsula Gaming 10.75% 8/15/17		2,595,000		2,809,088
	PHH 9.25% 3/1/16		3,280,000		3,165,199
*	Pinnacle Entertainment 8.75% 5/15/20		2,890,000		2,955,025
	RSC Equipment Rental III
	8.25% 2/1/21		3,016,000		3,129,100
	PIK 10.25% 11/15/19		164,000		181,220
#	Seven Seas Cruises 144A 9.125% 5/15/19		3,325,000		3,416,437
	Standard Pacific 10.75% 9/15/16		908,000		1,014,690
	Swift Services Holdings 10.00% 11/15/18		1,115,000		1,216,744
*#	Swift Transportation 144A 12.50% 5/15/17		1,009,000		1,086,885
#	United Air Lines 144A 12.00% 11/1/13		2,495,000		2,644,700
	West 7.875% 1/15/19		2,605,000		2,741,763
					57,444,363
Technology & Electronics – 5.81%
	Advanced Micro Devices 7.75% 8/1/20		3,825,000		4,150,125
	Aspect Software 10.625% 5/15/17		2,135,000		2,263,100
	Avaya
	9.75% 11/1/15		420,000		404,250
	10.125% 11/1/15		3,350,000		3,224,375
	CDW 12.535% 10/12/17		3,825,000		4,159,688
	Fidelity National Information Services 7.875% 7/15/20		1,200,000		1,356,000

Statement of net assets
Delaware High-Yield Opportunities Fund

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Technology & Electronics (continued)
*	First Data 11.25% 3/31/16	$	8,267,000	$	7,212,957
	GXS Worldwide 9.75% 6/15/15		2,171,000		2,138,435
	iGate 9.00% 5/1/16		2,660,000		2,839,550
	MagnaChip Semiconductor 10.50% 4/15/18		1,540,000		1,651,650
	Seagate HDD Cayman 7.75% 12/15/18		2,649,000		2,947,013
					32,347,143
Telecommunications – 9.08%
#	Clearwire Communications 144A 12.00% 12/1/15		4,615,000		4,372,713
#	Columbus International 144A 11.50% 11/20/14		2,800,000		2,990,400
	Cricket Communications 7.75% 10/15/20		2,374,000		2,267,170
#	Digicel Group 144A
	8.875% 1/15/15		765,000		774,563
	10.50% 4/15/18		4,724,000		5,019,249
#	EH Holding 144A 7.625% 6/15/21		2,190,000		2,321,400
#	Integra Telecom Holdings 144A 10.75% 4/15/16		2,025,000		1,711,125
	Intelsat Bermuda
	11.25% 2/4/17		4,310,000		4,363,875
	PIK 11.50% 2/4/17		3,708,300		3,736,112
	Level 3 Communications 11.875% 2/1/19		2,200,000		2,409,000
	Level 3 Financing 10.00% 2/1/18		2,456,000		2,634,060
	MetroPCS Wireless 6.625% 11/15/20		1,365,000		1,358,175
	NII Capital 7.625% 4/1/21		1,356,000		1,396,680
	PAETEC Holding 9.875% 12/1/18		1,720,000		1,930,700
	Satmex Escrow 9.50% 5/15/17		1,330,000		1,396,500
	Sprint Capital 8.75% 3/15/32		3,059,000		2,584,855
	Sprint Nextel 8.375% 8/15/17		2,275,000		2,127,125
	Telesat Canada 12.50% 11/1/17		1,343,000		1,517,590
#	Wind Acquisition Finance 144A
	7.25% 2/15/18		1,000,000		972,500
	11.75% 7/15/17		4,730,000		4,706,350
					50,590,142
Utilities – 2.02%
#	Calpine 144A
	7.50% 2/15/21		1,625,000		1,738,750
	7.875% 1/15/23		1,050,000		1,131,375
	Elwood Energy 8.159% 7/5/26		1,220,229		1,214,128

		Principal
		amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Utilities (continued)
	GenOn Energy
	*9.50% 10/15/18		$1,094,000	$	1,039,300
	9.875% 10/15/20		1,135,000		1,061,225
	Mirant Americas 8.50% 10/1/21		2,862,000		2,647,350
#	NRG Energy 144A 7.875% 5/15/21		2,500,000		2,387,500
					11,219,628
Total Corporate Bonds (cost $494,079,869)					497,119,039

«Senior Secured Loans – 3.39%
	Brock Holdings III 10.00% 2/15/18		925,000		877,978
	Clear Channel Communication Tranche B
	3.89% 1/29/16		2,975,000		2,396,006
	Dynegy Power 1st Lien 9.25% 7/11/16		2,458,838		2,520,308
	PQ 6.74% 7/30/15		2,504,000		2,345,622
	Prestige Brands 9.25% 12/20/12		675,000		675,000
	Samson Investment 8.00% 11/22/12		2,640,000		2,640,000
	Texas Competitive Electric Holdings 3.76% 10/10/14		6,870,000		4,683,622
@	United Rentals
	7.37% 12/15/12		803,636		803,636
	8.88% 12/15/12		1,916,364		1,916,364
Total Senior Secured Loans (cost $19,338,715)					18,858,536

			Number of shares
Common Stock – 0.35%
†	Alliance HealthCare Services		107,528		122,582
=∏†	Avado Brands		10,210		0
=†	Calpine		2,490,000		0
=†	Century Communications		4,250,000		0
†	Delta Air Lines		266		2,806
†	DIRECTV Class A		19,150		861,942
†	Flextronics International		49,950		343,157
†	GenOn Energy		5,032		10,718
†	GeoEye		7,900		173,089
†	Mobile Mini		22,073		459,118
=∏†	PT Holdings		3,285		33
Total Common Stock (cost $5,237,421)					1,973,445

Statement of net assets
Delaware High-Yield Opportunities Fund

		Number of shares		Value (U.S. $)
Preferred Stock – 1.73%
	Ally Financial
	#144A 7.00%		7,500	$	6,039,610
	∏•8.50%		50,000		1,045,500
•	GMAC Capital Trust I 8.125%		115,000		2,551,850
=†	PT Holdings		657		0
Total Preferred Stock (cost $10,033,902)					9,636,960

Warrant – 0.00%
=∏@	PT Holdings		657		7
Total Warrant (cost $15,768)					7

		Principal
		amount (U.S. $)
Repurchase Agreement – 4.17%
	BNP Paribas 0.18%, dated 1/31/12, to be
	repurchased on 2/1/12, repurchase price
	$23,243,116 (collateralized by U.S.
	government obligations 0.00%-4.625%
	5/15/12-2/15/19; market value $23,707,605)	$	23,243,000		23,243,000
Total Repurchase Agreement (cost $23,243,000)					23,243,000

Total Value of Securities Before Securities
	Lending Collateral – 98.89% (cost $551,948,675)				550,830,987

		Number of shares
**Securities Lending Collateral – 0.83%
	Investment Companies
	BNY Mellon SL DBT II Liquidating Fund		263,870		256,350
	Delaware Investments Collateral Fund No. 1		4,360,020		4,360,020
	†@Mellon GSL Reinvestment Trust II		514,615		0
Total Securities Lending Collateral (cost $5,138,505)					4,616,370


Total Value of Securities – 99.72%
(cost $557,087,180)	$	555,447,357		©
**Obligation to Return Securities
Lending Collateral – (0.92%)		(5,138,505		)
Receivables and Other Assets
Net of Other Liabilities – 1.20%		6,704,396
Net Assets Applicable to 138,478,380
Shares Outstanding – 100.00%	$	557,013,248
Net Asset Value – Delaware High-Yield Opportunities Fund
Class A ($314,002,504 / 78,085,119 Shares)			$4.02
Net Asset Value – Delaware High-Yield Opportunities Fund
Class B ($5,796,883 / 1,442,050 Shares)			$4.02
Net Asset Value – Delaware High-Yield Opportunities Fund
Class C ($56,544,241 / 14,041,094 Shares)			$4.03
Net Asset Value – Delaware High-Yield Opportunities Fund
Class R ($19,107,367 / 4,736,862 Shares)			$4.03
Net Asset Value – Delaware High-Yield Opportunities Fund
Institutional Class ($161,562,253 / 40,173,255 Shares)			$4.02

Components of Net Assets at January 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	604,013,500
Undistributed net investment income		725,284
Accumulated net realized loss on investments		(46,085,392		)
Net unrealized depreciation of investments		(1,640,144		)
Total net assets	$	557,013,248

#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At January 31, 2012, the aggregate value of Rule 144A securities was $185,028,867, which represented 33.22% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of January 31, 2012. Interest rates reset periodically.
*	Fully or partially on loan.
=	Security is being fair valued in accordance with the Fund’s fair valuation policy. At January 31, 2012, the aggregate value of fair valued securities was $467,711, which represented 0.08% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”

Statement of net assets
Delaware High-Yield Opportunities Fund


@	Illiquid security. At January 31, 2012, the aggregate value of illiquid securities was $3,187,678, which represented 0.57% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at January 31, 2012.
†	Non income producing security.
∏	Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended and have certain restrictions on resale which may limit their liquidity. At January 31, 2012, the aggregate value of restricted securities was $1,045,540, which represented 0.19% of the Fund’s net assets.
**	See Note 8 in “Notes to financial statements” for additional information on securities lending collateral.
©	Includes $3,870,058 of securities loaned.

PIK — Pay-in-kind

Net Asset Value and Offering Price Per Share –
Delaware High-Yield Opportunities Fund
Net asset value Class A (A)		$4.02
Sales charge (4.50% of offering price) (B)		0.19
Offering price		$4.21

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

(B)	See the current prospectus for purchases of $100,000 or more.

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

Statement of operations
Delaware High-Yield Opportunities Fund	Six Months Ended January 31, 2012 (Unaudited)

Investment Income:
Interest	$	21,637,457
Dividends		485,277
Securities lending income		217,856	$	22,340,590

Expenses:
Management fees		1,587,668
Distribution expenses – Class A		420,686
Distribution expenses – Class B		31,067
Distribution expenses – Class C		245,394
Distribution expenses – Class R		54,117
Dividend disbursing and transfer agent fees and expenses		291,239
Accounting and administration expenses		96,308
Registration fees		51,655
Reports and statements to shareholders		28,667
Legal fees		20,201
Trustees’ fees		13,052
Audit and tax		12,064
Custodian fees		6,808
Dues and services		5,796
Pricing fees		3,219
Trustees’ expenses		1,146		2,869,087
Less fees waived				(140,792	)
Less waived distribution expenses – Class R				(9,020	)
Less expense paid indirectly				(176	)
Total operating expenses				2,719,099
Net Investment Income				19,621,491

Net Realized and Unrealized Loss:
Net realized loss				(3,382,340	)
Net change in unrealized appreciation (depreciation)				(13,577,275	)
Net Realized and Unrealized Loss				(16,959,615	)

Net Increase in Net Assets Resulting from Operations			$	2,661,876

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

Statements of changes in net assets
Delaware High-Yield Opportunities Fund

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	19,621,491		$	39,735,177
Net realized gain (loss)		(3,382,340	)		30,062,333
Net change in unrealized appreciation (depreciation)		(13,577,275	)		(3,141,584	)
Net increase in net assets resulting from operations		2,661,876			66,655,926

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(11,426,973	)		(28,743,438	)
Class B		(229,246	)		(663,551	)
Class C		(1,808,622	)		(3,302,907	)
Class R		(710,423	)		(1,280,922	)
Institutional Class		(5,545,604	)		(6,949,686	)
		(19,720,868	)		(40,940,504	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		123,135,429			147,142,944
Class B		38,487			89,206
Class C		14,170,867			24,959,490
Class R		4,449,204			10,148,940
Institutional Class		88,785,614			107,327,461

Net asset value of shares issued upon reinvestment of
dividends and distributions:
Class A		8,313,966			21,600,062
Class B		153,347			378,617
Class C		1,184,505			2,000,469
Class R		708,134			1,262,481
Institutional Class		4,212,470			4,633,841
		245,152,023			319,543,511

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(112,821,508	)	$	(216,729,375	)
Class B		(1,555,295	)		(3,578,810	)
Class C		(10,108,011	)		(11,892,841	)
Class R		(4,364,959	)		(7,872,999	)
Institutional Class		(51,113,565	)		(52,727,065	)
		(179,963,338	)		(292,801,090	)
Increase in net assets derived
from capital share transactions		65,188,685			26,742,421
Net Increase in Net Assets		48,129,693			52,457,843

Net Assets:
Beginning of period		508,883,555			456,425,712
End of period (including undistributed net investment
income of $725,284 and $716,341, respectively)	$	557,013,248		$	508,883,555

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

Financial highlights
Delaware High-Yield Opportunities 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 income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$4.200		$3.980		$3.560		$3.880		$4.260		$4.260


	0.157		0.315		0.356		0.323		0.299		0.321
	(0.179	)	0.231		0.412		(0.347	)	(0.368	)	0.012
	(0.022	)	0.546		0.768		(0.024	)	(0.069	)	0.333


	(0.158	)	(0.326	)	(0.348	)	(0.296	)	(0.311	)	(0.333	)
	(0.158	)	(0.326	)	(0.348	)	(0.296	)	(0.311	)	(0.333	)

	$4.020		$4.200		$3.980		$3.560		$3.880		$4.260

	(0.32%	)	14.11%		22.30%		0.81%		(1.74%	)	7.82%


	$314,003		$306,304		$335,684		$261,286		$86,809		$102,420
	1.11%		1.11%		1.11%		1.15%		1.13%		1.13%

	1.17%		1.20%		1.25%		1.37%		1.31%		1.27%
	8.02%		7.60%		9.25%		9.92%		7.28%		7.24%

	7.96%		7.51%		9.11%		9.70%		7.10%		7.10%
	23%		115%		141%		89%		143%		149%

Financial highlights
Delaware High-Yield Opportunities Fund Class B

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 income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$4.190		$3.980		$3.560		$3.880		$4.260		$4.260


	0.143		0.286		0.329		0.300		0.271		0.291
	(0.169	)	0.221		0.412		(0.347	)	(0.368	)	0.012
	(0.026	)	0.507		0.741		(0.047	)	(0.097	)	0.303


	(0.144	)	(0.297	)	(0.321	)	(0.273	)	(0.283	)	(0.303	)
	(0.144	)	(0.297	)	(0.321	)	(0.273	)	(0.283	)	(0.303	)

	$4.020		$4.190		$3.980		$3.560		$3.880		$4.260

	(0.44%	)	13.06%		21.46%		0.11%		(2.42%	)	7.08%


	$5,797		$7,527		$10,143		$11,966		$7,827		$12,446
	1.81%		1.81%		1.81%		1.85%		1.83%		1.83%

	1.87%		1.90%		1.95%		2.07%		2.01%		1.97%
	7.32%		6.90%		8.55%		9.22%		6.58%		6.54%

	7.26%		6.81%		8.41%		9.00%		6.40%		6.40%
	23%		115%		141%		89%		143%		149%

Financial highlights
Delaware High-Yield Opportunities Fund Class C

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 income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$4.200		$3.990		$3.560		$3.880		$4.260		$4.260


	0.143		0.287		0.329		0.300		0.270		0.290
	(0.169	)	0.221		0.422		(0.347	)	(0.368	)	0.012
	(0.026	)	0.508		0.751		(0.047	)	(0.098	)	0.302


	(0.144	)	(0.298	)	(0.321	)	(0.273	)	(0.282	)	(0.302	)
	(0.144	)	(0.298	)	(0.321	)	(0.273	)	(0.282	)	(0.302	)

	$4.030		$4.200		$3.990		$3.560		$3.880		$4.260

	(0.43%	)	13.04%		21.75%		0.10%		(2.44%	)	7.07%


	$56,544		$53,151		$36,060		$31,415		$21,146		$27,179
	1.81%		1.81%		1.81%		1.85%		1.83%		1.83%

	1.87%		1.90%		1.95%		2.07%		2.01%		1.97%
	7.32%		6.90%		8.55%		9.22%		6.58%		6.54%

	7.26%		6.81%		8.41%		9.00%		6.40%		6.40%
	23%		115%		141%		89%		143%		149%

Financial highlights
Delaware High-Yield Opportunities Fund Class R

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 income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$4.210		$3.990		$3.570		$3.890		$4.270		$4.270


	0.153		0.308		0.349		0.316		0.291		0.313
	(0.179	)	0.231		0.412		(0.347	)	(0.368	)	0.012
	(0.026	)	0.539		0.761		(0.031	)	(0.077	)	0.325


	(0.154	)	(0.319	)	(0.341	)	(0.289	)	(0.303	)	(0.325	)
	(0.154	)	(0.319	)	(0.341	)	(0.289	)	(0.303	)	(0.325	)

	$4.030		$4.210		$3.990		$3.570		$3.890		$4.270

	(0.42%	)	13.87%		22.01%		0.62%		(1.93%	)	7.59%


	$19,107		$19,046		$14,708		$15,323		$11,305		$9,251
	1.31%		1.31%		1.31%		1.35%		1.33%		1.33%

	1.47%		1.50%		1.55%		1.67%		1.61%		1.57%
	7.82%		7.40%		9.05%		9.72%		7.08%		7.04%

	7.66%		7.21%		8.81%		9.40%		6.80%		6.80%
	23%		115%		141%		89%		143%		149%

Financial highlights
Delaware High-Yield Opportunities Fund Institutional Class

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 income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

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

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

Six Months Ended			Year Ended
1/31/12¹			7/31/11		7/31/10		7/31/09		7/31/08		7/31/07
(Unaudited)
	$4.200		$3.980		$3.560		$3.880		$4.260		$4.260


	0.162		0.328		0.367		0.332		0.312		0.335
	(0.179	)	0.231		0.412		(0.347	)	(0.368	)	0.012
	(0.017	)	0.559		0.779		(0.015	)	(0.056	)	0.347


	(0.163	)	(0.339	)	(0.359	)	(0.305	)	(0.324	)	(0.347	)
	(0.163	)	(0.339	)	(0.359	)	(0.305	)	(0.324	)	(0.347	)

	$4.020		$4.200		$3.980		$3.560		$3.880		$4.260

	(0.18%	)	14.45%		22.65%		1.11%		(1.45%	)	8.15%


	$161,562		$122,855		$59,831		$45,166		$37,465		$26,557
	0.81%		0.81%		0.81%		0.85%		0.83%		0.83%

	0.87%		0.90%		0.95%		1.07%		1.01%		0.97%
	8.32%		7.90%		9.55%		10.22%		7.58%		7.54%

	8.26%		7.81%		9.41%		10.00%		7.40%		7.40%
	23%		115%		141%		89%		143%		149%

Notes to financial statements
Delaware High-Yield Opportunities Fund	January 31, 2012 (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 High-Yield Opportunities 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 B, 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 B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months. Class R and Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.

The investment objective of the Fund is to seek total return and, as a secondary objective, high current income.

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, which approximates fair value. Short-term debt securities are valued at market value. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Investment company securities are valued at net asset value per share. 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, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the 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 returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (July 31, 2008-July 31, 2011), and has concluded that no provision 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 gain (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 purchase certain U.S. government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Fund’s custodian or a third party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on January 31, 2012.

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

Notes to financial statements
Delaware High-Yield Opportunities Fund

1. Significant Accounting Policies (continued)

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 debt securities are amortized to interest income over the lives of the respective securities. The Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. The Fund may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The 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 six months ended January 31, 2012.

The Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statement of operations with the corresponding expense offset shown as “expense paid indirectly.” For the six months ended January 31, 2012, the Fund earned $176 under this agreement.

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 0.65% on the first $500 million of average daily net assets of the Fund, 0.60% on the next $500 million, 0.55% on the next $1.5 billion, and 0.50% on average daily net assets in excess of $2.5 billion.

DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse the Fund to the extent necessary to prevent that total annual operating expenses, (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations (collectively, nonroutine expenses)), from exceeding 0.81% of average daily net assets of the Fund through November 28, 2012. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

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 January 31, 2012, the Fund was charged $12,116 for these services.

DSC also provides dividend disbursing and transfer agency services. The Fund pays DSC a monthly asset-based fee for these 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 B and Class C shares and 0.60% of the average daily net assets of the Class R shares. Institutional Class shares pay no distribution and service expenses. DDLP has contracted to limit the Class R shares’ 12b-1 fees through November 28, 2012 to no more than 0.50% of its average daily net assets. The total 12b-1 fees to be paid by Class A shareholders of the Fund will be the sum of 0.10% of the average daily net assets representing shares that were acquired prior to June 1, 1992 and 0.30% of the average daily net assets representing shares that were acquired on or after June 1, 1992. All Class A shareholders will bear 12b-1 fees at the same rate, the blended rate based upon the allocation of the rates described above.

At January 31, 2012, the Fund had liabilities payable to affiliates as follows:

Investment management fees payable to DMC	$	288,297
Dividend disbursing, transfer agent and fund accounting oversight
fees and other expenses payable to DSC		13,162
Distribution fees payable to DDLP		136,491
Other expenses payable to DMC and affiliates*		12,568

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

As provided in the investment management agreement, 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 January 31, 2012, the Fund was charged $7,150 for internal legal and tax services provided by DMC and/or its affiliates’ employees.

For the six months ended January 31, 2012, DDLP earned $43,436 for commissions on sales of the Fund’s Class A shares. For the six months ended January 31, 2012, DDLP received gross CDSC commissions of $ 316, $1,651 and $ 4,640 on redemptions of the Fund’s Class A, Class B and Class C shares, respectively, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares.

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.

Notes to financial statements
Delaware High-Yield Opportunities Fund

3. Investments

For the six months ended January 31, 2011, the Fund made purchases of $161,710,576 and sales of $107,079,326 of investment securities other than short-term investments.

At January 31, 2012, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At January 31, 2012, the cost of investments was $ 557,095,319. At January 31, 2012, net unrealized depreciation was $1,647,962, of which $18,947,594 related to unrealized appreciation of investments and $20,595,556 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 for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)

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

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

be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of January 31, 2012:

	Level 1		Level 2		Level 3		Total
Common Stock	$	1,973,412	$	—	$	33	$	1,973,445
Corporate Debt		—		509,474,904		6,502,671		515,977,575
Short-Term Investments		—		23,243,000		—		23,243,000
Securities Lending Collateral		—		4,616,370		—		4,616,370
Other		3,597,350		6,039,610		7		9,636,967
Total	$	5,570,762	$	543,373,884	$	6,502,711	$	555,447,357

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

	Common			Corporate					Total
	Stock			Debt		Other			Fund
Balance as of 7/31/11		$	33	$	438,120		$	7	$	438,160
Purchases			—		6,064,551			—		6,064,551
Balance as of 1/31/12		$	33	$	6,502,671		$	7	$	6,502,711

Net change in unrealized
appreciation (depreciation)
from investments still held
as of 1/31/12		$	—	$	—		$	—	$	—

During the six months ended January 31, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Fund. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

Notes to financial statements
Delaware High-Yield Opportunities Fund

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 January 31, 2012 and the year ended July 31, 2011 was as follows:

	Six months	Year
	Ended	Ended
	1/31/12*	7/31/11
Ordinary income	$19,720,868	$40,940,504

*Tax information for the six months ended January 31, 2012 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

Shares of beneficial interest	$	604,013,500
Undistributed ordinary income		1,914,368
Distributions payable		(1,189,084	)
Realized losses 8/1/11-1/31/12		(3,132,259	)
Capital loss carryforwards as of July 31,2011		(42,944,994	)
Unrealized depreciation of investments		(1,648,283	)
Net assets	$	557,013,248

The differences between book basis and tax basis components of the net assets are primarily attributable to tax deferral of losses on wash sales, tax treatment of distributions payable, 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. Results of operations and net assets were not affected by these reclassifications. For the six months ended January 31, 2012, the Fund recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

Undistributed net investment income		$	108,320
Accumulated net realized loss			(108,320	)

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at July 31, 2011 will expire as follows: $2,444,609 expires in 2016 and $40,500,385 expires in 2017. The use of these losses is subject to an annual limitation in accordance with the internal revenue code.

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

For the six months ended January 31, 2012, the Fund had short-term capital losses of $3,132,259, which may increase the capital loss carryforwards.

6. Capital Shares

Transactions in capital shares were as follows:

	Six Months		Year
	Ended		Ended
	1/31/12		7/31/11
Shares sold:
Class A	31,675,147		35,395,485
Class B	9,871		21,522
Class C	3,637,752		5,978,891
Class R	1,143,559		2,418,512
Institutional Class	22,859,924		25,749,143

Shares issued upon reinvestment of dividends and distributions:
Class A	2,147,186		5,202,322
Class B	39,642		91,383
Class C	305,505		480,119
Class R	182,306		302,749
Institutional Class	1,088,048		1,111,162
	63,088,940		76,751,288

Shares repurchased:
Class A	(28,752,712	)	(51,905,636	)
Class B	(402,552	)	(866,308	)
Class C	(2,552,731	)	(2,851,557	)
Class R	(1,114,915	)	(1,878,009	)
Institutional Class	(13,055,568	)	(12,603,596	)
	(45,878,478	)	(70,105,106	)

Net increase	17,210,462		6,646,182

Notes to financial statements
Delaware High-Yield Opportunities Fund

6. Capital Shares (continued)

For the six months ended January 31, 2012 and the year ended July 31, 2011, 208,535 Class B shares were converted to 209,038 Class A shares valued at $806,886 and 426,642 Class B shares were converted to 426,407 Class A shares valued at $1,754,683, respectively. The respective amounts are included in Class B redemptions and Class A subscriptions in the table on previous page and the statements of changes in net assets.

7. Line of Credit

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

On November 15, 2011, the Fund, along with the other Participants, entered into an amendment to the agreement for a $125,000,000 revolving line of credit. The agreement is to be used as described above and operates in substantially the same manner as the original agreement. The agreement expires on November 13, 2012. The Fund had no amounts outstanding as of January 31, 2012, 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 The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (i) 102% with respect to U.S. securities and foreign securities that are denominated and payable in U.S. dollars; and (ii) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of collateral held with respect to a loaned security may be temporarily more or less than the value of the security on loan.

Cash collateral received is generally invested in the Delaware Investment Collateral Fund No. 1 (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of funds managed by DMC that participates in BNY Mellon’s securities lending program. The Collective Trust may invest in U.S. government securities and high quality corporate debt, asset-backed and other money market securities in repurchase agreements collateralized by such securities, provided that the Collective Trust will generally have a dollar-weighted average portfolio maturity of 60 days or less. Effective April 20, 2009, BNY Mellon transferred the assets of the Fund’s previous collateral investment pool other than cash and assets with a maturity of one business day or less to the BNY Mellon SL DBT II Liquidating Fund (Liquidating Fund), effectively bifurcating the previous collateral investment pool. The Fund’s exposure to the Liquidating Fund is expected to decrease as the Liquidating Fund’s assets mature or are sold. In October 2008, BNY Mellon transferred certain distressed securities from the previous collateral investment pool into the Mellon GSL Reinvestment Trust II. The 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 are subject to changes 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 Collective Trust used for the investment of cash collateral received from borrowers of securities seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The Fund may incur investment losses as a result of investing securities lending collateral in the Collective Trust or another collateral investment pool. This could occur if an investment in a collateral investment pool defaulted or if it were necessary to liquidate assets in the collateral investment pool to meet returns on outstanding security loans at a time when the collateral investment pool’s net asset value per unit was less than $1.00. Under those circumstances, the Fund may not receive an amount from the collateral investment pool 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.

At January 31, 2012, the value of the securities on loan was $3,870,058, for which cash collateral was received and invested in accordance with the Lending Agreement. At January 31, 2012, the value of invested collateral was $4,616,370. These investments are presented on the statement of net assets under the caption “Securities Lending Collateral.”

Notes to financial statements
Delaware High-Yield Opportunities Fund

9. Credit and Market Risk

The Fund invests in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s and Baa3 by Moody’s Investor Services, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.

The 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 securities. 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. Rule 144A and illiquid 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.

11. Subsequent Events

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

Other Fund information
(Unaudited)
Delaware High-Yield Opportunities Fund

Board Consideration of Delaware High-Yield Opportunities Fund Investment Advisory Agreement

At a meeting held on August 16-17, 2011 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreement for the Delaware High-Yield Opportunities Fund (the “Fund”). In making its decision, the Board considered information furnished specifically in connection with the renewal of the Investment Advisory Agreement with Delaware Management Company (“DMC”), which included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Fund, the costs of such services to the Fund, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2011 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared the Fund’s investment performance and expenses with those of other comparable mutual funds. The independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

In considering information relating to the approval of the Fund’s advisory agreement, the independent Trustees received assistance and advice from and met separately with independent legal counsel to the independent Trustees. Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.

Nature, Extent and Quality of Service. The Board considered the services provided by Delaware Investments to the Fund and its shareholders. In reviewing the nature, extent and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Fund, compliance of portfolio managers with the investment policies, strategies and restrictions for the Fund, compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Investments Family of Funds complex and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of the Fund’s investment advisor and the emphasis placed on research in the investment process. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board noted that in July 2011 Management implemented measures to reduce overall costs and improve transfer agent and shareholder servicing functions through outsourcing. It is expected that such measures will improve the quality and lower the cost of delivering transfer agent and shareholder servicing services to

Other Fund information
(Unaudited)
Delaware High-Yield Opportunities Fund

Board Consideration of Delaware High-Yield Opportunities Fund Investment Advisory Agreement (continued)

the Fund. The Board once again noted the benefits provided to Fund shareholders through 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 the Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Investment Performance. The Board placed significant emphasis on the investment performance of the Fund in view of its importance to shareholders. Although the Board gave appropriate consideration to performance reports and discussions with portfolio managers at Investment Committee meetings throughout the year, the Board gave particular weight to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for the Fund showed the investment performance of its Class A shares in comparison to a group of similar funds as selected by Lipper (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for the Fund was shown for the past one-, three-, five- and ten-year periods, as applicable, ended March 31, 2011. The Board’s objective is that the Fund’s performance for the periods considered be at or above the median of its Performance Universe. The following paragraph summarizes the performance results for the Fund and the Board’s view of such performance.

The Performance Universe for the Fund consisted of the Fund and all retail and institutional high current yield funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, five- and ten-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-year period was in the second quartile. The Board was satisfied with performance.

Comparative Expenses. The Board considered expense comparison data for the Delaware Investments Family of Funds. Management provided the Board with information on pricing levels and fee structures for the Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of the Fund versus effective management fees and expense ratios of a group of similar funds as selected by Lipper (the “Expense Group”). In reviewing comparative costs, the 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) within the Expense Group, taking into account any applicable breakpoints and fee waivers. The Fund’s total expenses were also

compared with those of its Expense Group. The Lipper total expenses, for comparative consistency, were shown by Lipper for Class A shares and comparative total expenses including 12b-1 and non 12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit the Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraph summarizes the expense results for the Fund and the Board’s view of such expenses.

The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating total expenses, the Board considered fee waivers in place through November 2011 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Management Profitability. The Board considered the level of profits realized by Delaware Investments in connection with the operation of the Fund. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the individual 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. Management stated that the level of profits of Delaware Investments, to a certain extent, reflect recent operational cost savings and efficiencies initiated by Delaware Investments. 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 Securities and Exchange Commission initiatives. The Board also considered 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. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of Delaware Investments.

Economies of Scale. The Trustees considered whether economies of scale are realized by Delaware Investments as the Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed the standardized advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case on all assets when the asset levels specified are exceeded. The Board noted that the fee

Other Fund information
(Unaudited)
Delaware High-Yield Opportunities Fund

Board Consideration of Delaware High-Yield Opportunities Fund Investment Advisory Agreement (continued)

under the Fund’s management contract fell within the standard structure. The Board also noted that the Fund’s assets exceeded the first breakpoint level. The Board believed that, given the extent to which economics of scale might be realized by the advisor and its affiliates, the schedule of fees under the Investment Advisory Agreement provides a sharing of benefits with the Fund and its shareholders.

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 Trust) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Trust, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Trust for the fiscal year ending July 31, 2010. During the fiscal years ended July 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Trust did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trust and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trust nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Trust’s financial statements.

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 Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Frances A. Sevilla-Sacasa Executive Advisor to Dean, University of Miami School of Business Administration Coral Gables, FL	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

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 High-Yield Opportunities Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

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 website 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 website 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 Funds’ website at www.delawareinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

Semiannual report

Delaware Core Bond Fund

January 31, 2012

Fixed income mutual fund

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

Experience Delaware Investments

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.

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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/sector allocation	3
Statement of net assets	4
Statement of operations	17
Statements of changes in net assets	18
Financial highlights	20
Notes to financial statements	28
Other Fund information	39
About the organization	44

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

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

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the 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 six-month period from August 1, 2011 to January 31, 2012

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from August 1, 2011 to January 31, 2012.

Actual expenses

Hypothetical example for comparison purposes

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
	8/1/11		1/31/12		Expense Ratio	8/1/11 to 1/31/12*
Actual Fund return
Class A		$1,000.00		$1,046.30	0.90%		$4.63
Class C		1,000.00		1,042.30	1.65%		8.47
Class R		1,000.00		1,044.50	1.15%		5.91
Institutional Class		1,000.00		1,047.40	0.65%		3.35
Hypothetical 5% return (5% return before expenses)
Class A		$1,000.00		$1,020.61	0.90%		$4.57
Class C		1,000.00		1,016.84	1.65%		8.36
Class R		1,000.00		1,019.36	1.15%		5.84
Institutional Class		1,000.00		1,021.87	0.65%		3.30

Security type/sector allocation
Delaware Core Bond Fund		As of January 31, 2012

Security type/sector	Percentage of net assets
Agency Asset-Backed Securities	0.08	%
Agency Collateralized Mortgage Obligations	2.21	%
Agency Mortgage-Backed Securities	28.21	%
Commercial Mortgage-Backed Securities	4.09	%
Corporate Bonds	33.13	%
Banking	5.93	%
Basic Industry	3.00	%
Brokerage	0.29	%
Capital Goods	0.23	%
Communications	3.31	%
Consumer Cyclical	1.89	%
Consumer Non-Cyclical	5.05	%
Electric	2.16	%
Energy	2.46	%
Financials	0.88	%
Insurance	1.38	%
Natural Gas	1.81	%
Real Estate	1.85	%
Technology	2.16	%
Transportation	0.73	%
Municipal Bond	0.84	%
Non-Agency Asset-Backed Securities	5.03	%
Regional Bonds	0.42	%
Supranational Bank	0.06	%
U.S. Treasury Obligations	19.95	%
Preferred Stock	0.21	%
Short-Term Investments	23.45	%
Total Value of Securities	117.68	%
Liabilities Net of Receivables and Other Assets	(17.68	%)
Total Net Assets	100.00	%

Statement of net assets
Delaware Core Bond Fund			January 31, 2012 (Unaudited)

		Principal amount (U.S. $)		Value (U.S. $)
Agency Asset-Backed Securities – 0.08%
	Fannie Mae Grantor Trust
	Series 2003-T4 2A5 5.407% 9/26/33	$	11,004	$	11,702
	Fannie Mae Whole Loan
	Series 2001-W2 AS5 6.473% 10/25/31		7,858		8,185
	•Series 2002-W11 AV1 0.616% 11/25/32		1,175		1,085
Total Agency Asset-Backed Securities
	(cost $19,928)				20,972

Agency Collateralized Mortgage Obligations – 2.21%
	Fannie Mae REMICs
	Series 2004-49 EB 5.00% 7/25/24		55,212		60,327
	Series 2010-35 AB 5.00% 11/25/49		96,354		104,807
	Series 2010-116 Z 4.00% 10/25/40		36,914		37,009
	Fannie Mae Whole Loan
	Series 2003-W15 2A7 5.55% 8/25/43		18,301		20,091
	Freddie Mac REMICs
	Series 2326 ZQ 6.50% 6/15/31		36,939		42,061
	Series 3027 DE 5.00% 9/15/25		60,000		65,392
	Series 3656 PM 5.00% 4/15/40		10,000		11,532
	•Series 3800 AF 0.79% 2/15/41		149,415		149,618
	GNMA Series 2010-113 KE 4.50% 9/20/40		50,000		56,155
	NCUA Guaranteed Notes
	Series 2010-C1 A2 2.90% 10/29/20		20,000		21,295
•	Vendee Mortgage Trust
	Series 2000-1 1A 6.809% 1/15/30		20,956		25,166
Total Agency Collateralized Mortgage
	Obligations (cost $568,738)				593,453

Agency Mortgage-Backed Securities – 28.21%
•	Fannie Mae ARM
	2.327% 12/1/33		18,375		19,306
	2.338% 8/1/34		23,902		25,266
	Fannie Mae Relocation 30 yr 5.00% 1/1/34		1,261		1,350
	Fannie Mae S.F. 15 yr
	3.00% 11/1/26		57,439		59,976
	3.50% 8/1/26		233,302		245,792
	4.00% 7/1/25		186,333		197,612
	4.00% 11/1/25		290,848		311,636
	5.00% 9/1/25		476,462		513,665
	8.00% 10/1/14		14		15

		Principal amount (U.S. $)		Value (U.S. $)
Agency Mortgage-Backed Securities (continued)
	Fannie Mae S.F. 15 yr TBA
	3.00% 2/1/27	$	377,000	$	392,964
	3.50% 2/1/27		1,010,000		1,062,709
	3.50% 3/1/27		180,000		189,056
	Fannie Mae S.F. 20 yr 5.50% 8/1/28		47,143		51,319
	Fannie Mae S.F. 30 yr
	4.00% 1/1/42		294,597		311,836
	5.00% 12/1/37		3,917		4,234
	5.00% 2/1/38		3,639		3,933
	6.00% 7/1/38		224,899		247,527
	6.00% 9/1/38		218,337		240,236
	6.00% 12/1/38		220,371		242,544
	6.00% 3/1/39		24,013		26,430
	6.00% 10/1/39		221,773		244,295
	7.50% 12/1/32		4,943		5,474
	9.50% 4/1/18		632		735
	Fannie Mae S.F. 30 yr TBA
	3.50% 2/1/42		245,000		254,532
	3.50% 3/1/42		75,000		77,707
	4.00% 4/1/42		215,000		226,086
	5.50% 2/1/42		360,000		391,613
	5.50% 4/1/42		160,000		173,425
	6.00% 2/1/42		1,410,000		1,549,732
	6.00% 4/1/42		140,000		153,305
•	Freddie Mac ARM
	2.458% 4/1/33		5,190		5,233
	2.495% 7/1/36		7,894		8,376
	2.547% 4/1/34		3,605		3,823
	5.046% 8/1/38		180,946		194,632
	Freddie Mac Relocation 15 yr 3.50% 10/1/18		1,698		1,744
	Freddie Mac S.F. 15 yr
	5.00% 4/1/20		9,988		10,777
	5.50% 7/1/24		101,331		110,161
	GNMA I S.F. 15 yr 7.50% 4/15/13		168		169
	GNMA I S.F. 30 yr 7.50% 2/15/32		2,385		2,800
Total Agency Mortgage-Backed Securities
	(cost $7,510,929)				7,562,025

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)		Value (U.S. $)
Commercial Mortgage-Backed Securities – 4.09%
	Bank of America Merrill Lynch Commercial Mortgage
	Series 2004-2 A3 4.05% 11/10/38	$	10,496	$	10,643
	Series 2005-1 A3 4.877% 11/10/42		6,843		6,838
•	Bear Stearns Commercial Mortgage Securities
	Series 2005-PW10 A4 5.405% 12/11/40		25,000		27,971
w•	Commercial Mortgage Pass Through Certificates
	Series 2005-C6 A5A 5.116% 6/10/44		120,000		132,855
•	Credit Suisse Mortgage Capital Certificates Series
	2006-C1 AAB 5.594% 2/15/39		15,967		16,873
•	General Electric Capital Commercial Mortgage
	Series 2005-C4 A2 5.305% 11/10/45		6,063		6,061
	Goldman Sachs Mortgage Securities II
	•Series 2004-GG2 A6 5.396% 8/10/38		20,000		21,610
	Series 2005-GG4 A4 4.761% 7/10/39		35,000		37,193
	Series 2005-GG4 A4A 4.751% 7/10/39		105,000		113,658
	•Series 2006-GG6 A4 5.553% 4/10/38		120,000		132,930
•	JPMorgan Chase Commercial Mortgage Securities
	Series 2005-LDP4 A4 4.918% 10/15/42		30,000		32,882
	Series 2005-LDP5 A4 5.373% 12/15/44		15,000		16,797
	Lehman Brothers-UBS Commercial Mortgage Trust
	Series 2004-C1 A4 4.568% 1/15/31		100,000		105,231
	Morgan Stanley Capital I
	Series 2005-HQ6 A4A 4.989% 8/13/42		160,000		175,613
	•Series 2007-T27 A4 5.792% 6/11/42		190,000		220,413
#	TimberStar Trust
	Series 2006-1A A 144A 5.668% 10/15/36		35,000		39,443
Total Commercial Mortgage-Backed Securities
	(cost $977,157)				1,097,011

Corporate Bonds – 33.13%
Banking – 5.93%
	Abbey National Treasury Services 4.00% 4/27/16		70,000		67,988
	Bank of America 5.70% 1/24/22		30,000		31,134
	BB&T
	5.20% 12/23/15		30,000		32,724
	5.25% 11/1/19		101,000		112,177

		Principal amount (U.S. $)		Value (U.S. $)
Corporate Bonds (continued)
Banking (continued)
	Capital One Capital V 10.25% 8/15/39	$	30,000	$	31,575
	Capital One Financial 4.75% 7/15/21		140,000		147,640
	City National 5.25% 9/15/20		30,000		30,145
	Fifth Third Bancorp 3.625% 1/25/16		85,000		88,678
	Goldman Sachs Group 5.75% 1/24/22		25,000		25,963
	JPMorgan Chase 4.50% 1/24/22		20,000		20,651
	JPMorgan Chase Capital XXV 6.80% 10/1/37		70,000		71,320
	KeyCorp 5.10% 3/24/21		105,000		114,361
	PNC Funding
	5.125% 2/8/20		170,000		195,707
	5.25% 11/15/15		15,000		16,331
	Santander Holdings USA 4.625% 4/19/16		20,000		19,549
	SunTrust Banks
	3.50% 1/20/17		40,000		41,035
	3.60% 4/15/16		20,000		20,681
	SVB Financial Group 5.375% 9/15/20		50,000		51,547
	US Bancorp
	3.15% 3/4/15		55,000		58,200
	4.125% 5/24/21		80,000		89,262
•	USB Capital IX 3.50% 10/29/49		70,000		52,462
	Wachovia
	•0.937% 10/15/16		20,000		17,848
	5.25% 8/1/14		200,000		215,009
	5.625% 10/15/16		35,000		39,102
					1,591,089
Basic Industry – 3.00%
	Alcoa
	5.40% 4/15/21		5,000		5,259
	6.75% 7/15/18		50,000		57,791
	ArcelorMittal 9.85% 6/1/19		55,000		64,933
	Barrick North America Finance 4.40% 5/30/21		75,000		82,719
	BHP Billiton Finance 3.25% 11/21/21		20,000		21,031
	Dow Chemical
	4.125% 11/15/21		45,000		47,453
	8.55% 5/15/19		118,000		156,644
	Ecolab 3.00% 12/8/16		85,000		89,973
	Georgia-Pacific
	#144A 5.40% 11/1/20		10,000		11,324
	8.00% 1/15/24		50,000		65,067

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S. $)
Corporate Bonds (continued)
Basic Industry (continued)
	International Paper
	4.75% 2/15/22		$	20,000	$	21,662
	9.375% 5/15/19			40,000		52,901
#	Kinross Gold 144A 5.125% 9/1/21			35,000		35,384
	Lubrizol 5.50% 10/1/14			15,000		16,700
	Teck Resources
	4.75% 1/15/22			20,000		22,122
	6.25% 7/15/41			20,000		23,606
	9.75% 5/15/14			26,000		30,664
						805,233
Brokerage – 0.29%
	Jefferies Group
	5.875% 6/8/14			10,000		10,150
	6.45% 6/8/27			15,000		13,725
	Lazard Group 6.85% 6/15/17			50,000		54,069
						77,944
Capital Goods – 0.23%
	Stanley Black & Decker 3.40% 12/1/21			60,000		62,192
						62,192
Communications – 3.31%
	American Tower 5.90% 11/1/21			65,000		70,090
#	Crown Castle Towers 144A 4.883% 8/15/20			85,000		88,665
	DIRECTV Holdings 5.00% 3/1/21			80,000		88,156
	NBCUniversal Media 4.375% 4/1/21			105,000		114,213
	Qwest
	6.75% 12/1/21			15,000		16,678
	8.375% 5/1/16			90,000		105,247
	Telefonica Emisiones 6.421% 6/20/16			85,000		91,121
	Time Warner Cable
	4.00% 9/1/21			25,000		26,198
	8.25% 2/14/14			5,000		5,673
	8.25% 4/1/19			45,000		58,073
	Verizon Communications 3.50% 11/1/21			95,000		99,567
#	Vivendi 144A 6.625% 4/4/18			55,000		61,905
#	WPP Finance 2010 144A 4.75% 11/21/21			60,000		61,755
						887,341

		Principal amount (U.S. $)			Value (U.S. $)
Corporate Bonds (continued)
Consumer Cyclical – 1.89%
	CVS Caremark 4.75% 5/18/20		$	55,000	$	62,671
	Historic TW 6.875% 6/15/18			50,000		60,711
	Johnson Controls 3.75% 12/1/21			30,000		31,228
	Macy’s Retail Holdings 3.875% 1/15/22			155,000		159,118
	Target 2.90% 1/15/22			165,000		167,155
	Western Union 3.65% 8/22/18			25,000		25,666
						506,549
Consumer Non-Cyclical – 5.05%
	Amgen
	3.45% 10/1/20			15,000		15,420
	3.875% 11/15/21			60,000		62,612
#	Aristotle Holding 144A 4.75% 11/15/21			50,000		53,013
	Becton, Dickinson 3.125% 11/8/21			70,000		72,971
	Boston Scientific 6.00% 1/15/20			25,000		28,505
	Celgene 3.95% 10/15/20			35,000		36,441
	DENTSPLY International 4.125% 8/15/21			25,000		26,272
	Dr. Pepper Snapple Group 3.20% 11/15/21			5,000		5,112
	Express Scripts 3.125% 5/15/16			55,000		56,985
	General Mills 3.15% 12/15/21			60,000		61,204
	Kraft Foods 6.125% 8/23/18			50,000		60,372
	Medco Health Solutions
	4.125% 9/15/20			20,000		20,283
	7.125% 3/15/18			65,000		76,748
	PerkinElmer 5.00% 11/15/21			20,000		21,038
	Quest Diagnostics
	4.70% 4/1/21			120,000		131,899
	4.75% 1/30/20			5,000		5,484
#	SABMiller Holdings 144A 4.95% 1/15/42			200,000		213,522
	Safeway 4.75% 12/1/21			70,000		73,191
	Smucker (J.M.) 3.50% 10/15/21			35,000		36,465
	Teva Pharmaceutical Finance IV 3.65% 11/10/21			85,000		90,097
#	Woolworths 144A
	3.15% 4/12/16			40,000		41,617
	4.55% 4/12/21			55,000		59,823
	Yale University 2.90% 10/15/14			20,000		21,222
	Zimmer Holdings 4.625% 11/30/19			75,000		83,281
						1,353,577

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S. $)
Corporate Bonds (continued)
Electric – 2.16%
	Baltimore Gas & Electric 3.50% 11/15/21		$	40,000	$	41,241
	Commonwealth Edison 3.40% 9/1/21			65,000		68,935
	LG&E & KU Energy
	3.75% 11/15/20			35,000		35,315
	#144A 4.375% 10/1/21			30,000		30,822
	National Rural Utilities Cooperative Finance
	3.05% 2/15/22			105,000		106,554
	PPL Electric Utilities 3.00% 9/15/21			20,000		20,626
	SCANA 4.125% 2/1/22			85,000		85,665
	Virginia Electric & Power 2.95% 1/15/22			115,000		117,402
	Wisconsin Electric Power 2.95% 9/15/21			15,000		15,471
•	Wisconsin Energy 6.25% 5/15/67			55,000		56,300
						578,331
Energy – 2.46%
	Canadian Natural Resources 3.45% 11/15/21			25,000		26,472
	Encana 3.90% 11/15/21			75,000		73,566
	Ensco 4.70% 3/15/21			15,000		16,104
	Noble Energy
	4.15% 12/15/21			35,000		36,469
	8.25% 3/1/19			50,000		63,411
	Petrobras International Finance 5.375% 1/27/21			65,000		68,441
	Pride International 6.875% 8/15/20			80,000		96,753
#	Ras Laffan Liquefied Natural Gas III
	144A 5.832% 9/30/16			69,822		75,582
	Transocean
	5.05% 12/15/16			10,000		10,726
	6.375% 12/15/21			40,000		45,444
	Weatherford International
	5.125% 9/15/20			25,000		27,034
	9.625% 3/1/19			35,000		46,955
#	Woodside Finance 144A
	8.125% 3/1/14			30,000		33,412
	8.75% 3/1/19			30,000		38,199
						658,568
Financials – 0.88%
	General Electric Capital
	4.65% 10/17/21			140,000		148,189
	6.00% 8/7/19			75,000		86,973
						235,162

		Principal amount (U.S. $)			Value (U.S. $)
Corporate Bonds (continued)
Insurance – 1.38%
•	Chubb 6.375% 3/29/67		$	35,000	$	35,875
#	Highmark 144A
	4.75% 5/15/21			35,000		36,304
	6.125% 5/15/41			5,000		5,425
	MetLife 6.817% 8/15/18			185,000		224,701
	Prudential Financial
	3.875% 1/14/15			20,000		20,996
	6.00% 12/1/17			40,000		45,690
						368,991
Natural Gas – 1.81%
	Energy Transfer Partners
	4.65% 6/1/21			30,000		30,685
	9.70% 3/15/19			40,000		50,646
	Enterprise Products Operating 9.75% 1/31/14			70,000		80,655
	Kinder Morgan Energy Partners 9.00% 2/1/19			50,000		63,618
	Plains All American Pipeline 8.75% 5/1/19			45,000		58,065
	Sempra Energy 6.15% 6/15/18			20,000		23,900
	Southern Natural Gas 4.40% 6/15/21			20,000		20,700
•	TransCanada Pipelines 6.35% 5/15/67			55,000		55,661
	Williams Partners 7.25% 2/1/17			85,000		102,798
						486,728
Real Estate – 1.85%
	Brandywine Operating Partnership 4.95% 4/15/18			30,000		30,115
	Digital Realty Trust
	5.25% 3/15/21			40,000		40,932
	5.875% 2/1/20			35,000		37,765
	ERP Operating 4.625% 12/15/21			90,000		96,090
	Health Care REIT 5.25% 1/15/22			50,000		52,902
	Regency Centers
	4.80% 4/15/21			15,000		15,705
	5.875% 6/15/17			14,000		15,696
	Simon Property Group 4.125% 12/1/21			35,000		37,682
	UDR 4.625% 1/10/22			80,000		83,794
	Vornado Realty 5.00% 1/15/22			35,000		36,734
#	WEA Finance 144A 4.625% 5/10/21			45,000		47,590
						495,005

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S. $)
Corporate Bonds (continued)
Technology – 2.16%
	Applied Materials 4.30% 6/15/21		$	80,000	$	88,718
	Broadcom 2.70% 11/1/18			105,000		108,032
	Hewlett-Packard
	4.30% 6/1/21			55,000		57,585
	4.375% 9/15/21			25,000		26,356
	4.65% 12/9/21			10,000		10,779
	National Semiconductor 6.60% 6/15/17			50,000		61,259
#	Seagate Technology International 144A
	10.00% 5/1/14			25,000		28,688
	Symantec 4.20% 9/15/20			20,000		20,540
	Tyco Electronics Group 3.50% 2/3/22			90,000		89,646
	Xerox
	4.50% 5/15/21			45,000		46,274
	6.35% 5/15/18			35,000		40,333
						578,210
Transportation – 0.73%
	Burlington Northern Santa Fe 4.10% 6/1/21			60,000		65,594
	CSX 4.75% 5/30/42			80,000		83,729
	Ryder System 3.50% 6/1/17			45,000		46,806
						196,129
Total Corporate Bonds (cost $8,463,767)						8,881,049

Municipal Bond – 0.84%
	Massachusetts Development Finance
	Agency Revenue (Harvard University)
	Series B-1 5.00% 10/15/40			195,000		224,919
Total Municipal Bond (cost $203,484)						224,919

Non-Agency Asset-Backed Securities – 5.03%
•	Ally Master Owner Trust
	Series 2011-1 A1 1.155% 1/15/16			100,000		100,242
•	American Express Credit Account Master Trust
	Series 2011-1 A 0.46% 4/17/17			100,000		100,062
•	Capital One Multi-Asset Execution Trust
	Series 2004-A1 A1 0.495% 12/15/16			80,000		79,994
	Series 2004-A4 A4 0.505% 3/15/17			55,000		54,974
	Series 2006-A12 A 0.35% 7/15/16			100,000		99,755
	Series 2007-A4 A4 0.315% 3/16/15			100,000		99,971

		Principal amount (U.S. $)			Value (U.S. $)
Non-Agency Asset-Backed Securities (continued)
•	Citibank Credit Card Issuance Trust
	Series 2008-A6 A6 1.481% 5/22/17		$	115,000	$	118,867
	Series 2009-A2 A2 1.835% 5/15/14			100,000		100,448
	CNH Equipment Trust
	Series 2010-A A4 2.49% 1/15/16			50,000		51,180
•	GE Capital Credit Card Master Note Trust
	Series 2011-1 A 0.835% 1/15/17			100,000		100,772
#	Great America Leasing Receivables
	Series 2011-1 A3 144A 1.69% 2/15/14			35,000		35,177
	Harley Davidson Motorcycle Trust
	Series 2008-1 A4 4.90% 12/15/13			41,671		42,133
	John Deere Owner Trust
	Series 2009-A A4 3.96% 5/16/16			50,000		50,459
	Series 2010-A A4 2.13% 10/17/16			35,000		35,680
	Series 2011-A A4 1.96% 4/16/18			35,000		35,928
•	Merrill Auto Trust Securitization
	Series 2007-1 A4 0.345% 12/15/13			532		532
	Mid-State Trust Series 11 A1 4.864% 7/15/38			24,995		25,533
#	Navistar Financial Owner Trust
	Series 2010-B A3 144A 1.08% 3/18/14			50,000		50,004
•#	Nissan Master Owner Trust Receivables
	Series 2010-AA A 144A 1.435% 1/15/15			45,000		45,307
•#	Volkswagen Credit Auto Master Trust
	Series 2011-1A NOTE 144A 0.961% 9/20/16			120,000		120,010
Total Non-Agency Asset-Backed Securities
	(cost $1,346,638)					1,347,028

ΔRegional Bonds – 0.42%
Canada – 0.42%
	Province of New Brunswick 2.75% 6/15/18			40,000		42,371
	Province of Ontario 3.00% 7/16/18			65,000		69,119
Total Regional Bonds (cost $105,190)						111,490

Supranational Bank – 0.06%
	Inter-American Development Bank
	3.875% 10/28/41			15,000		15,941
Total Supranational Bank (cost $14,963)						15,941

Statement of net assets
Delaware Core Bond Fund

		Principal amount (U.S. $)			Value (U.S. $)
U.S. Treasury Obligations – 19.95%
	U.S. Treasury Bond 3.75% 8/15/41		$	80,000	$	93,275
	U.S. Treasury Notes
	0.25% 11/30/13			250,000		250,195
	0.25% 1/15/15			200,000		199,750
	0.875% 1/31/17			2,485,000		2,505,385
	1.375% 12/31/18			20,000		20,208
	2.00% 11/15/21			2,240,000		2,279,549
Total U.S. Treasury Obligations (cost $5,295,011)						5,348,362

		Number of shares
Preferred Stock – 0.21%
	Alabama Power 5.625%			825		21,115
•	PNC Financial Services Group 8.25%			35,000		36,488
Total Preferred Stock (cost $50,477)						57,603

		Principal amount (U.S. $)
Short-Term Investments – 23.45%
≠Discount Notes – 2.98%
	Fannie Mae 0.01% 3/7/12		$	343,591		343,584
	Federal Home Loan Bank 0.02% 3/21/12			454,122		454,110
						797,694
Repurchase Agreements – 19.19%
	BNP Paribas 0.18% dated 1/31/12, to be
	repurchased on 2/1/12, repurchase price
	$5,143,026 (collateralized by U.S. government
	obligations 0.00%-4.625% 5/15/12-2/15/19;
	market value $5,245,803)			5,143,000		5,143,000
						5,143,000
≠U.S. Treasury Bill – 1.28%
	U.S. Treasury Bill 0.001% 2/23/12			343,591		343,582
						343,582
Total Short-Term Investments (cost $6,284,287)						6,284,276


Total Value of Securities – 117.68%
(cost $30,840,569)	$	31,544,129
Liabilities Net of Receivables and
Other Assets – (17.68%)		(4,739,409		)z
Net Assets Applicable to 2,444,357
Shares Outstanding – 100.00%	$	26,804,720

Net Asset Value – Delaware Core Bond Fund
Class A ($5,315,877 / 487,827 Shares)			$10.90
Net Asset Value – Delaware Core Bond Fund
Class C ($1,134,521 / 103,710 Shares)			$10.94
Net Asset Value – Delaware Core Bond Fund
Class R ($2,350 / 215.2 Shares)			$10.92
Net Asset Value – Delaware Core Bond
Institutional Class ($20,351,972 / 1,852,605 Shares)			$10.99

Components of Net Assets at January 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	26,004,662
Undistributed net investment income		5,369
Accumulated net realized gain on investments		91,129
Net unrealized appreciation of investments		703,560
Total net assets	$	26,804,720

#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At January 31, 2012, the aggregate value of Rule 144A securities was $1,212,971 which represented 4.53% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of January 31, 2012. Interest rates reset periodically.
w	Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes.
Δ	Securities have been classified by country of origin.
≠	The rate shown is the effective yield at the time of purchase.
z	Of this amount, $6,156,279 represents payable for securities purchased as of January 31, 2012.

Statement of net assets
Delaware Core Bond Fund

Summary of abbreviations:
ARM — Adjustable Rate Mortgage
GNMA — Government National Mortgage Association
NCUA — National Credit Union Administration
REIT — Real Estate Investment Trust
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)	$	10.90
Sales charge (4.50% of offering price) (B)		0.51
Offering price	$	11.41

(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, which are an integral part of the financial statements.

Statement of operations
Delaware Core Bond Fund	Six months ended January 31, 2012 (Unaudited)

Investment Income:
	Interest	$	287,614
	Dividends		2,024	$	289,638

Expenses:
	Management fees		64,089
	Registration fees		27,060
	Distribution expense – Class A		7,254
	Distribution expense – Class C		3,983
	Distribution expense – Class R		7
	Reports and statements to shareholders		11,028
	Dividend disbursing and transfer agent fees and expenses		6,957
	Audit and tax		5,988
	Pricing fees		5,707
	Accounting and administration expenses		5,047
	Legal fees		4,857
	Dues and services		4,516
	Custodian fees		1,412
	Trustees’ fees		667
	Insurance fees		186
	Consulting fees		91
	Trustees’ expenses		51		148,900
	Less fees waived				(54,246	)
	Less waived distribution expenses – Class A				(1,209	)
	Less waived distribution expenses – Class R				(1	)
	Less expense paid indirectly				(1	)
	Total operating expenses				93,443
Net Investment Income					196,195

Net Realized and Unrealized Gain:
	Net realized gain on investments				925,598
	Net change in unrealized appreciation (depreciation) of investments				46,496
Net Realized and Unrealized Gain					972,094

Net Increase in Net Assets Resulting from Operations				$	1,168,289

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

Statements of changes in net assets
Delaware Core Bond Fund

		Six Months			Year
		Ended			Ended
		1/31/12			7/31/11
		(Unaudited)
Increase in Net Assets from Operations:
	Net investment income	$	196,195		$	457,512
	Net realized gain		925,598			499,079
	Net change in unrealized appreciation (depreciation)		46,496			154,330
	Net increase in net assets resulting from operations		1,168,289			1,110,921

Dividends and Distributions to Shareholders from:
	Net investment income:
	Class A		(45,182	)		(92,817	)
	Class C		(4,407	)		(3,937	)
	Class R		(44	)		(57	)
	Institutional Class		(212,705	)		(467,492	)

	Net realized gain on investments:
	Class A		(169,117	)		(28,966	)
	Class C		(39,070	)		(1,782	)
	Class R		(79	)		(17	)
	Institutional Class		(637,452	)		(132,171	)
			(1,108,056	)		(727,239	)

Capital Share Transactions:
	Proceeds from shares sold:
	Class A		1,026,618			840,175
	Class C		1,148,307			258,795
	Class R		—			14
	Institutional Class		1,732,970			5,415,653

	Net asset value of shares issued upon reinvestment
	of dividends and distributions:
	Class A		210,749			119,982
	Class C		32,407			4,899
	Class R		99			49
	Institutional Class		795,975			549,038
			4,947,125			7,188,605

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(265,851	)	$	(704,664	)
Class C		(377,678	)		(65,899	)
Institutional Class		(3,605,730	)		(819,537	)
		(4,249,259	)		(1,590,100	)
Increase in net assets derived from capital share transactions		697,866			5,598,505
Net Increase in Net Assets		758,099			5,982,187

Net Assets:
Beginning of period		26,046,621			20,064,434
End of period (including undistributed net investment
income of $5,369 and $5,065, respectively)	$	26,804,720		$	26,046,621

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

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 income⁴

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return⁵

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

² During the period ended July 31, 2010, the Fund changed its fiscal year end from October to July. Ratios have been annualized and total return and portfolio turnover have not been annualized.

³ 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 accompanying notes, which are an integral part of the financial statements

Six Months Ended			Year Ended		11/1/09		Year Ended
1/31/12¹			7/31/11		to		10/31/09³		10/31/08³		10/31/07³		10/31/06³
(Unaudited)					7/31/10²
	$10.890		$10.750		$10.370		$9.200		$9.880		$9.940		$9.960


	0.075		0.199		0.159		0.445		0.460		0.457		0.427
	0.420		0.274		0.434		1.195		(0.643	)	(0.014	)	0.025
	0.495		0.473		0.593		1.640		(0.183	)	0.443		0.452


	(0.103	)	(0.249	)	(0.213	)	(0.470	)	(0.497	)	(0.503	)	(0.472	)
	(0.382	)	(0.084	)	—		—		—		—		—
	(0.485	)	(0.333	)	(0.213	)	(0.470	)	(0.497	)	(0.503	)	(0.472	)

	$10.900		$10.890		$10.750		$10.370		$9.200		$9.880		$9.940

	4.63%		4.49%		5.89%		18.29%		(2.07%	)	4.68%		4.68%


	$5,316		$4,348		$4,022		$6,346		$6,757		$13,791		$28,795
	0.90%		0.90%		0.90%		0.70%		0.39%		0.39%		0.43%	⁶

	1.37%		1.46%		2.25%		1.60%		1.12%		0.66%		0.67%
	1.36%		1.86%		2.04%		4.35%		4.66%		4.61%		4.38%

	0.89%		1.30%		0.69%		3.45%		3.93%		4.33%		4.14%
	266%		503%		528%		346%		391%		251%		342%

⁴ The average shares outstanding method has been applied for per share information.

⁵ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during 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.

⁶ 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:

Net asset value, beginning of period

Income from investment operations:

Net investment income⁴

Net realized and unrealized gain

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return⁵

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

Ratio of net investment income to average net assets

Ratio of net investment income (loss) to average net assets

prior to fees waived

Portfolio turnover

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

² During the period ended July 31, 2010, the Fund changed its fiscal year end from October to July. Ratios have been annualized and total return and portfolio turnover have not been annualized.

³ Date of commencement of operations; ratios have been annualized and total return has not been annualized.

⁴ The average shares outstanding method has been applied for per share information.

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

Six Months Ended			Year Ended		11/1/09		9/30/09³
1/31/12¹			7/31/11		to		to
(Unaudited)					7/31/10²		10/31/09
	$10.930		$10.790		$10.370		$10.310


	0.034		0.120		0.103		0.030
	0.420		0.273		0.469		0.059
	0.454		0.393		0.572		0.089


	(0.062	)	(0.169	)	(0.152	)	(0.029	)
	(0.382	)	(0.084	)	—		—
	(0.444	)	(0.253	)	(0.152	)	(0.029	)

	$10.940		$10.930		$10.790		$10.370

	4.23%		3.70%		5.67%		0.86%


	$1,135		$347		$145		$2
	1.65%		1.65%		1.65%		1.65%
	2.07%		2.16%		2.95%		5.32%
	0.61%		1.11%		1.29%		3.33%

	0.19%		0.60%		(0.01%	)	(0.34%	)
	266%		503%		528%		346%	⁶

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

⁶ Portfolio turnover is representative of the Fund for the entire year.

Financial highlights
Delaware Core Bond Fund Class R

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

Net asset value, beginning of period

Income from investment operations:

Net investment income⁴

Net realized and unrealized gain

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return⁶

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

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

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

² During the period ended July 31, 2010, the Fund changed its fiscal year end from October to July. Ratios have been annualized and total return and portfolio turnover have not been annualized.

³ Date of commencement of operations; ratios have been annualized and total return has not been annualized.

⁴ The average shares outstanding method has been applied for per share information.

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

Six Months Ended			Year Ended		11/1/09		9/30/09³
1/31/12¹			7/31/11		to		to
(Unaudited)					7/31/10²		10/31/09
	$10.920		$10.830		$10.370		$10.310


	0.062		0.174		0.141		0.035
	0.415		0.226	⁵	0.510		0.059
	0.477		0.400	⁵	0.651		0.094


	(0.095	)	(0.226	)	(0.191	)	(0.034	)
	(0.382	)	(0.084	)	—		—
	(0.477	)	(0.310	)	(0.191	)	(0.034	)

	$10.920		$10.920	⁵	$10.830		$10.370

	4.45%		3.76%	⁵	6.44%		0.90%


	$2		$2		$2		$2
	1.15%		1.15%		1.15%		1.15%
	1.67%		1.76%		2.55%		4.92%
	1.11%		1.61%		1.79%		3.83%

	0.59%		1.00%		0.39%		0.06%
	266%		503%		528%		346%	⁷

⁵ Includes adjustments from the period ending July 31, 2010 in the amount of $13 (or $0.063 per share) which impacted total return by -0.59%. The adjustment is to correct a misallocation of distributions among share classes which had no impact on distribution amounts reported and paid to shareholders.

⁶ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

⁷ Portfolio turnover is representative of the Fund for the entire year.

Financial highlights
Delaware Core Bond Fund Institutional Class

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

Net asset value, beginning of period

Income from investment operations:

Net investment income⁴

Net realized and unrealized gain

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return⁵

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

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

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

2 During the period ended July 31, 2010, the Fund changed its fiscal year end from October to July. Ratios have been annualized and total return and portfolio turnover have not been annualized.

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

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

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

Six Months Ended			Year Ended		11/1/09		9/30/09³
1/31/12¹			7/31/11		to		to
(Unaudited)					7/31/10²		10/31/09
	$10.980		$10.830		$10.370		$10.310


	0.089		0.227		0.181		0.039
	0.421		0.285		0.512		0.060
	0.510		0.512		0.693		0.099


	(0.118	)	(0.278	)	(0.233	)	(0.039	)
	(0.382	)	(0.084	)	—		—
	(0.500	)	(0.362	)	(0.233	)	(0.039	)

	$10.990		$10.980		$10.830		$10.370

	4.74%		4.83%		6.76%		0.96%


	$20,352		$21,350		$15,895		$2
	0.65%		0.65%		0.65%		0.65%
	1.07%		1.16%		1.95%		4.32%
	1.61%		2.11%		2.29%		4.33%

	1.19%		1.60%		0.99%		0.66%
	266%		503%		528%		346%	⁶

5 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. 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.

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

Notes to financial statements

Delaware Core Bond Fund

January 31, 2012 (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 Diversified Floating Rate Fund, Delaware Extended Duration Bond 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, which approximates fair value. Securities listed on a foreign exchange are generally valued at the last quoted sales price on the valuation date. Short-term debt securities are valued at market value. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. 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, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign

markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the 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 returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (October 31, 2008 – July 31, 2011), and has concluded that no provision for federal income tax is required in the Fund’s financial statements.

Repurchase Agreements — The Fund may purchase certain U.S. government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Fund’s custodian or a third party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on January 31, 2012.

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

Notes to financial statements
Delaware Core Bond Fund

1. Significant Accounting Policies (continued)

the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other — Expenses directly attributable to the 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 debt securities 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 dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Dividends and distributions, if any, are recorded on the ex-dividend date. The Fund may distribute income dividends and capital gains more frequently, if necessary for tax purposes.

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 28, 2012. 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 January 31, 2012, the Fund was charged $ 635 for these services.

DSC also provides dividend disbursing and transfer agent services. The Fund pays DSC a monthly asset-based fee for these services.

At January 31, 2012, the Fund had liabilities payable to affiliates as follows:

Investment management fees payable to DMC	$	364
Dividend disbursing, transfer agent and fund accounting
oversight fees and other expenses payable to DSC		626
Distribution fees payable to DDLP		2,049
Other expenses payable to DMC and affiliates*		234

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 January 31, 2012, the Fund was charged $ 380 for internal legal and tax services provided by DMC and/or its affiliates’ employees.

For the six months ended January 31, 2012, DDLP earned $407 for commissions on sales of the Fund’s Class A shares. For the six months ended January 31, 2012, DDLP received gross CDSC commissions of $9 on redemption of the Fund’s Class C shares and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares.

Notes to financial statements
Delaware Core Bond Fund

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

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 January 31, 2012, the Fund made purchases of $33,181,089 and sales of $31,334,339 of investment securities other than U.S. government securities and short-term investments. For the six months ended January 31, 2012, the Fund made purchases of $32,363,100 and sales of $35,619,196 of long-term U.S. government securities.

At January 31, 2012, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At January 31, 2012, the cost of investments was $30,931,581. At January 31, 2012, the net unrealized appreciation was $612,548, of which $651,483 related to unrealized appreciation of investments and $38,935 related to unrealized depreciation of investments.

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

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

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

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of January 31, 2012:

	Level 1		Level 2		Total
Agency, Asset-Backed &
Mortgage-Backed Securities	$	—	$	10,620,489	$	10,620,489
Corporate Debt		—		8,881,049		8,881,049
Foreign Debt		—		127,431		127,431
Municipal Bond		—		224,919		224,919
U.S. Treasury Obligations		—		5,348,362		5,348,362
Short-Term Investments		—		6,284,276		6,284,276
Preferred Stock		21,115		36,488		57,603
Total	$	21,115	$	31,523,014	$	31,544,129

There were no unobservable inputs used to value investments at the beginning or end of the period.

During the six months ended January 31, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Fund. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

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 January 31, 2012 and year ended July 31, 2011 was as follows:

	Six Months		Year
	Ended		Ended
	1/31/12*		7/31/11
Ordinary income	$	1,052,708	$	727,239
Long-term capital gain		55,348		—
	$	1,108,056	$	727,239

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

Notes to financial statements
Delaware Core Bond Fund

5. Components of Net Assets on a Tax Basis

Shares of beneficial interest	$	26,004,662
Undistributed ordinary income		207,041
Undistributed long-term capital gains		3,630
Distributions payable		(12,982	)
Other temporary differences		(10,181	)
Unrealized appreciation of investments		612,550
Net assets	$	26,804,720

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, straddles, tax treatment of distribution payable 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 market discount and premium on certain debt instruments and paydowns of asset- and mortgage-backed securities. Results of operations and net assets were not affected by these reclassifications. For the six months ended January 31, 2012, the Fund recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

Undistributed net investment income		$	66,447
Accumulated net realized gain			(66,447	)

6. Capital Shares

Transactions in capital shares were as follows:

	Six
	Months		Year
	Ended		Ended
	1/31/2012		7/31/11
Shares Sold:
Class A	93,496		78,477
Class C	103,644		24,029
Class R	—		4
Institutional Class	158,346		503,198

Shares issued upon reinvestment of dividends and distributions:
Class A	19,580		11,190
Class C	3,008		455
Class R	9		2
Institutional Class	73,252		50,814
	451,335		668,169
Shares repurchased:
Class A	(24,346	)	(64,858	)
Class C	(34,687	)	(6,211	)
Institutional Class	(323,342	)	(77,235	)
	(382,375	)	(148,304	)
Net increase	68,960		519,865

7. Line of Credit

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

Notes to financial statements
Delaware Core Bond Fund

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

Cash collateral received is generally invested in the Delaware Investments Collateral Fund No. 1 (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of funds managed by DMC that participate in BNY Mellon’s securities lending program. The Collective Trust may invest in U.S. government securities and high quality corporate debt, asset-backed and other money market securities and in repurchase agreements collateralized by such securities, provided that the Collective Trust will generally have a dollar-weighted average portfolio maturity of 60 days or less. 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 changes 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 Collective Trust used for the investment of cash collateral received from borrowers of securities seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The 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. During the period ended January 31, 2012, the Fund had no securities out on loan.

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 and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the 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 invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s and Baa3 by Moody’s Investor Services, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

The Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s and Baa3 by Moody’s Investor Services, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

Notes to financial statements
Delaware Core Bond Fund

9. Credit and Market Risk (continued)

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 securities. 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 January 31, 2012, 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

11. Subsequent Events

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

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of Delaware Core Bond Fund Investment Advisory Agreement

At a meeting held on August 16-17, 2011 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreement for the Delaware Core Bond Fund (the “Fund”). In making its decision, the Board considered information furnished specifically in connection with the renewal of the Investment Advisory Agreement with Delaware Management Company (“DMC”), which included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Fund, the costs of such services to the Fund, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2011 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared the Fund’s investment performance and expenses with those of other comparable mutual funds. The independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

Other Fund information
(Unaudited)
Delaware Core Bond Fund

Board Consideration of Delaware Core Bond Fund Investment Advisory Agreement (continued)

to Fund shareholders through 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 the Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

The Performance Universe for the Fund consisted of the Fund and all retail and institutional intermediate investment-grade debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the three- and ten-year periods was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the one- and five-year periods was in the fourth quartile and second quartile, respectively. The Board determined that the Fund’s performance results were mixed. In evaluating the Fund’s performance, the Board considered interest rate challenges faced in the post-2007 investment environment and the fact that the team was adhering to its philosophy and process.

the Expense Group, taking into account any applicable breakpoints and fee waivers. The Fund’s total expenses were also compared with those of its Expense Group. The Lipper total expenses, for comparative consistency, were shown by Lipper for Class A shares and comparative total expenses including 12b-1 and non 12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit the Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraph summarizes the expense results for the Fund and the Board’s view of such expenses.

The expense comparisons for the Fund showed that its contractual management fee and total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

Other Fund information
(Unaudited)
Delaware Core Bond Fund

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 Trust) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Trust, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Trust for the fiscal period ending July 31, 2010. During the fiscal years ended October 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Trust did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trust and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trust nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Trust’s financial statements.

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 Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Frances A. Sevilla-Sacasa Executive Advisor to Dean, University of Miami School of Business Administration Coral Gables, FL	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

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 the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

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

Semiannual report

Delaware Diversified Floating Rate Fund

January 31, 2012

Fixed income mutual fund

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

Experience Delaware Investments

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 Diversified Floating Rate 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

Investments in Delaware Diversified Floating Rate 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/sector allocation	3
Statement of net assets	5
Statement of assets and liabilities	19
Statement of operations	20
Statements of changes in net assets	22
Financial highlights	24
Notes to financial statements	32
Other Fund information	48
About the organization	52

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

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

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the 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 six-month period from August 1, 2011 to January 31, 2012

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from August 1, 2011 to January 31, 2012.

Actual expenses

Hypothetical example for comparison purposes

Disclosure of Fund expenses

Delaware Diversified Floating Rate Fund
Expense analysis of an investment of $1,000

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	8/1/11			1/31/12			Expense Ratio			8/1/11 to 1/31/12*
Actual Fund return
Class A		$	1,000.00		$	997.10		1.05	%		$	5.27
Class C			1,000.00			992.20		1.80	%			9.01
Class R			1,000.00			994.40		1.30	%			6.52
Institutional Class			1,000.00			997.20		0.80	%			4.02
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,019.86		1.05	%		$	5.33
Class C			1,000.00			1,016.09		1.80	%			9.12
Class R			1,000.00			1,018.60		1.30	%			6.60
Institutional Class			1,000.00			1,021.11		0.80	%			4.06

Security type/sector allocation
Delaware Diversified Floating Rate Fund	As of January 31, 2012

Security type/sector	Percentage of net assets
Agency Collateralized Mortgage Obligations	1.82	%
Agency Mortgage-Backed Security	0.03	%
Commercial Mortgage-Backed Securities	0.91	%
Convertible Bonds	1.77	%
Corporate Bonds	55.79	%
Auto Manufacturer	0.53	%
Auto Parts & Equipment	1.62	%
Banking	12.33	%
Beverages	1.78	%
Building Materials	0.27	%
Chemicals	1.52	%
Commercial Services	0.51	%
Diversified Financial Services	5.36	%
Electric	6.52	%
Electronics	1.38	%
Food	1.33	%
Forest Products & Paper	0.35	%
Gas	0.97	%
Healthcare Products	0.04	%
Healthcare Services	1.25	%
Insurance	2.92	%
Media	0.95	%
Mining	0.39	%
Miscellaneous Manufacturing	2.24	%
Office/Business Equipment	3.21	%
Oil & Gas	2.94	%
Pharmaceuticals	1.73	%
Pipelines	1.07	%
Real Estate	0.34	%
Retail	0.24	%
Technology	0.23	%
Telecommunications	3.77	%

Security type/sector allocation

Security type/sector	Percentage of net assets
Municipal Bonds	2.92	%
Non-Agency Asset-Backed Securities	1.99	%
Senior Secured Loans	33.13	%
Sovereign Bonds	1.01	%
Short-Term Investment	0.06	%
Total Value of Securities	99.43	%
Receivables and Other Assets Net of Liabilities	0.57	%
Total Net Assets	100.00	%

Statement of net assets
Delaware Diversified Floating Rate Fund	January 31, 2012 (Unaudited)

		Principal amount°		Value (U.S. $)
Agency Collateralized Mortgage Obligations – 1.82%
•	Fannie Mae REMICs
	Series 2004-36 FA 0.676% 5/25/34	USD	94,915	$	94,893
	Series 2005-66 FD 0.576% 7/25/35		111,399		110,968
	Series 2005-106 QF 0.786% 12/25/35		650,752		651,817
	Series 2006-105 FB 0.696% 11/25/36		179,933		179,743
	Series 2007-109 NF 0.826% 12/25/37		52,892		53,045
•	Freddie Mac REMICs
	Series 3067 FA 0.64% 11/15/35		263,433		262,627
	Series 3239 EF 0.64% 11/15/36		249,003		248,212
	Series 3241 FM 0.67% 11/15/36		36,621		36,541
	Series 3780 LF 0.69% 3/15/29		52,530		52,461
Total Agency Collateralized Mortgage Obligations
	(cost $1,684,522)				1,690,307

Agency Mortgage-Backed Security – 0.03%
•	Freddie Mac ARM 4.669% 2/1/35		32,000		33,381
Total Agency Mortgage-Backed Security
	(cost $33,800)				33,381

Commercial Mortgage-Backed Securities – 0.91%
#•	American Tower Trust
	Series 2007-1A AFL 144A 0.475% 4/15/37		625,000		609,378
#•	Goldman Sachs Mortgage Securities II
	Series 2010-C1 C 144A 5.635% 8/10/43		100,000		92,024
#	WF-RBS Commercial Mortgage Trust
	Series 2011-C3 A4 144A 4.375% 3/15/44		135,000		147,449
Total Commercial Mortgage-Backed Securities
	(cost $843,136)				848,851

Convertible Bonds – 1.77%
	Advanced Micro Devices 5.75% exercise price $20.13,
	expiration date 8/15/12		329,000		333,113
	Euronet Worldwide 3.50% exercise price $40.48,
	expiration date 10/15/25		205,000		205,000
	Health Care REIT 3.00% exercise price $51.13,
	expiration date 11/30/29		160,000		189,600
	Linear Technology 3.00% exercise price $43.39,
	expiration date 5/1/27		205,000		219,350

Statement of net assets
Delaware Diversified Floating Rate Fund

		Principal amount°		Value (U.S. $)
Convertible Bonds (continued)
	Live Nation Entertainment 2.875% exercise price $27.14,
	expiration date 7/14/27	USD	334,000	$	311,455
	Mylan 3.75% exercise price $13.32,
	expiration date 9/10/15		19,000		32,466
	PHH 4.00% exercise price $25.80,
	expiration date 9/1/14		365,000		331,238
	SanDisk 1.50% exercise price $52.37,
	expiration date 8/11/17		14,000		16,240
	Transocean 1.50% exercise price $164.09,
	expiration date 12/15/37		4,000		3,950
Total Convertible Bonds (cost $1,623,725)					1,642,412

Corporate Bonds – 55.79%
Auto Manufacturer – 0.53%
#•	Daimler Finance North America 144A 1.742% 9/13/13		490,000		489,574
					489,574
Auto Parts & Equipment – 1.62%
#	Delphi 144A 6.125% 5/15/21		265,000		279,575
•	Johnson Controls 0.843% 2/4/14		1,225,000		1,224,749
					1,504,324
Banking – 12.33%
•	Abbey National Treasury Services 2.137% 4/25/14		785,000		744,901
#•	Australia & New Zealand Banking Group 144A
	1.321% 1/10/14		350,000		348,502
•	Bank of Montreal 1.023% 4/29/14		625,000		624,593
•	Barclays Bank 1.616% 1/13/14		595,000		582,360
•	Branch Banking & Trust
	0.795% 5/23/17		750,000		686,139
	0.862% 9/13/16		525,000		487,150
•	Capital One Financial 1.717% 7/15/14		565,000		557,394
	Citigroup 5.125% 5/5/14		260,000		273,148
	City National 5.25% 9/15/20		50,000		50,241
#•	CoBank 144A 1.146% 6/15/22		75,000		58,739
•	Fifth Third Bank 0.576% 5/17/13		700,000		687,796
•	Fifth Third Capital Trust IV 6.50% 4/15/37		50,000		49,875
•	Goldman Sachs Group 1.02% 3/22/16		320,000		286,239

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Banking (continued)
	JPMorgan Chase Bank
	•0.872% 6/13/16	USD	650,000	$	591,466
	4.50% 1/24/22		100,000		103,255
	•4.642% 6/21/12	AUD	100,000		105,839
#•	National Australia Bank 144A 1.301% 4/11/14	USD	990,000		976,389
•	National City Bank 0.904% 6/7/17		250,000		225,865
•	PNC Funding 0.751% 1/31/14		935,000		923,722
#•	Standard Chartered 144A 1.403% 5/12/14		500,000		496,184
•	SunTrust Bank 0.796% 8/24/15		985,000		899,634
#•	Swedbank 144A 1.021% 1/14/13		100,000		100,085
•	U.S. Bank 0.847% 10/14/14		420,000		412,789
•	USB Capital IX 3.50% 4/15/49		460,000		344,747
•	Wachovia 0.937% 10/15/16		695,000		620,231
•	Wells Fargo Bank 0.671% 5/16/16		250,000		226,815
					11,464,098
Beverages – 1.78%
•	Anheuser-Busch InBev Worldwide 0.927% 7/14/14		350,000		349,796
•	Coca-Cola Enterprises 0.771% 2/18/14		1,050,000		1,047,778
#	Pernod-Ricard 144A 4.45% 1/15/22		250,000		261,686
					1,659,260
Building Materials – 0.27%
#•	Cemex SAB 144A 5.579% 9/30/15		300,000		250,500
					250,500
Chemicals – 1.52%
	CF Industries 7.125% 5/1/20		250,000		300,000
	Dow Chemical 8.55% 5/15/19		140,000		185,850
•	duPont (E.I.) deNemours 0.994% 3/25/14		920,000		924,969
					1,410,819
Commercial Services – 0.51%
•	Western Union 1.114% 3/7/13		475,000		475,203
					475,203
Diversified Financial Services – 5.36%
#•	American Honda Finance 144A 0.805% 11/7/12		250,000		250,458
•	Caterpillar Financial Services 0.648% 2/22/13		250,000		250,720
#	CDP Financial 144A 4.40% 11/25/19		250,000		274,037

Statement of net assets
Delaware Diversified Floating Rate Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Diversified Financial Services (continued)
#	Crown Castle Towers 144A 4.883% 8/15/20	USD	1,200,000	$	1,251,738
#	ERAC USA Finance 144A 5.25% 10/1/20		288,000		312,384
	General Electric Capital
	•1.571% 9/23/13		168,000		167,966
	4.65% 10/17/21		432,000		457,268
	International Lease Finance 6.25% 5/15/19		360,000		353,280
•	John Deere Capital 0.717% 7/15/13		400,000		401,217
	Lazard Group 6.85% 6/15/17		250,000		270,344
#•	MassMutual Global Funding II 144A 1.074% 9/27/13		300,000		299,960
	National Rural Utilities Cooperative Finance
	3.05% 2/15/22		55,000		55,814
#•	ZFS Finance USA Trust IV 144A 5.875% 5/9/32		650,000		640,251
					4,985,437
Electric – 6.52%
	Ameren Illinois 9.75% 11/15/18		165,000		219,863
•	CMS Energy 1.521% 1/15/13		600,000		599,250
•	Columbus Southern Power 0.955% 3/16/12		815,000		814,565
	Commonwealth Edison 1.95% 9/1/16		200,000		204,091
•	DTE Energy 1.227% 6/3/13		900,000		899,717
•	Georgia Power
	0.841% 1/15/13		250,000		250,132
	0.866% 3/15/13		842,000		842,928
•	NextEra Energy Capital Holdings 0.841% 11/9/12		1,510,000		1,507,387
	SCANA 4.125% 2/1/22		70,000		70,547
•	Southern California Edison 0.996% 9/15/14		440,000		438,630
	Virginia Electric & Power 2.95% 1/15/22		161,000		164,362
•	Wisconsin Energy 6.25% 5/15/67		55,000		56,300
					6,067,772
Electronics – 1.38%
	National Semiconductor 6.60% 6/15/17		310,000		379,806
•	Texas Instruments 0.637% 5/15/13		900,000		903,195
					1,283,001
Food – 1.33%
•	General Mills 0.811% 5/16/14		780,000		780,129
#	Grupo Bimbo SAB 144A 4.50% 1/25/22		100,000		102,314
	Kraft Foods 5.375% 2/10/20		300,000		350,938
					1,233,381

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Forest Products & Paper – 0.35%
	Georgia-Pacific 8.00% 1/15/24	USD	250,000	$	325,332
					325,332
Gas – 0.97%
•	Sempra Energy 1.306% 3/15/14		900,000		897,836
					897,836
Healthcare Products – 0.04%
•	Universal Hospital Services 4.121% 6/1/15		35,000		32,988
					32,988
Healthcare Services – 1.25%
•	Quest Diagnostics 1.424% 3/24/14		1,115,000		1,121,459
•	Select Medical Holdings 6.267% 9/15/15		50,000		44,938
					1,166,397
Insurance – 2.92%
•	Berkshire Hathaway Finance 0.911% 1/10/14		820,000		821,487
•	Chubb 6.375% 3/29/67		260,000		266,500
#•	MetLife Institutional Funding II 144A 1.481% 4/4/14		1,150,000		1,150,481
#•	New York Life Global Funding 144A 0.841% 4/4/14		485,000		480,756
					2,719,224
Media – 0.95%
	DIRECTV Holdings 5.00% 3/1/21		130,000		143,253
	Historic TW 6.875% 6/15/18		120,000		145,707
	NBCUniversal Media 4.375% 4/1/21		30,000		32,632
	Time Warner Cable
	4.00% 9/1/21		120,000		125,751
	8.25% 4/1/19		125,000		161,313
#	Vivendi 144A 6.625% 4/4/18		245,000		275,760
					884,416
Mining – 0.39%
	Alcoa
	5.40% 4/15/21		195,000		205,101
	6.75% 7/15/18		140,000		161,814
					366,915

Statement of net assets
Delaware Diversified Floating Rate Fund

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Miscellaneous Manufacturing – 2.24%
•	Danaher 0.817% 6/21/13	USD	1,265,000	$	1,270,058
	Tyco Electronics Group 1.60% 2/3/15		110,000		109,776
•	VF 1.245% 8/23/13		700,000		700,438
					2,080,272
Office/Business Equipment – 3.21%
	Xerox 4.50% 5/15/21		2,900,000		2,982,107
					2,982,107
Oil & Gas – 2.94%
#	BG Energy Capital 144A 4.00% 10/15/21		200,000		214,816
•	BP Capital Markets 1.14% 3/11/14		983,000		987,054
	Petrohawk Energy 7.875% 6/1/15		450,000		479,250
#•	Schlumberger Investment 144A 1.09% 9/12/14		470,000		470,856
•	Total Capital Canada 0.947% 1/17/14		470,000		472,194
	Transocean
	5.05% 12/15/16		15,000		16,090
	6.375% 12/15/21		85,000		96,568
					2,736,828
Pharmaceuticals – 1.73%
•	DENTSPLY International 1.957% 8/15/13		650,000		654,826
	Teva Pharmaceutical Finance IV 3.65% 11/10/21		900,000		953,970
					1,608,796
Pipelines – 1.07%
•	Enbridge Energy Partners 8.05% 10/1/37		511,000		551,053
	Energy Transfer Partners 8.50% 4/15/14		180,000		205,327
•	Enterprise Products Operating 7.034% 1/15/68		100,000		105,878
•	TransCanada PipeLines 6.35% 5/15/67		135,000		136,622
					998,880
Real Estate – 0.34%
	Digital Realty Trust 5.25% 3/15/21		310,000		317,220
					317,220
Retail – 0.24%
	Macy’s Retail Holdings 3.875% 1/15/22		85,000		87,258
	Target 2.90% 1/15/22		130,000		131,697
					218,955

		Principal amount°		Value (U.S. $)
Corporate Bonds (continued)
Technology – 0.23%
•	Hewlett-Packard 0.923% 5/30/14	USD	75,000	$	73,098
#	Seagate Technology International 144A 10.00% 5/1/14		126,000		144,585
					217,683
Telecommunications – 3.77%
	Qwest 6.75% 12/1/21		675,000		750,508
•	Telefonica Emisiones 0.763% 2/4/13		505,000		493,091
	Verizon Communications
	2.00% 11/1/16		185,000		188,997
	3.50% 11/1/21		795,000		833,216
#•	VimpelCom Holdings 144A 4.576% 6/29/14		470,000		455,585
	Virgin Media Secured Finance 6.50% 1/15/18		550,000		593,999
•	Vodafone Group 0.792% 2/27/12		190,000		190,060
					3,505,456
Total Corporate Bonds (cost $51,877,053)					51,882,674

Municipal Bonds – 2.92%
•	Connecticut State Series A 1.63% 3/1/21		750,000		749,993
•	Kentucky Higher Education Student Loan Revenue
	Series A-1 0.929% 5/1/20		50,000		49,754
•	Missouri Higher Education Loan Authority Student
	Revenue Series A-1 1.307% 8/27/29		60,164		58,121
•	New Jersey Economic Development Authority Revenue
	(Build America Bonds) 1.546% 6/15/13		75,000		75,005
•	New Mexico Educational Assistance Foundation
	Series A-3 1.51% 12/1/38		120,000		119,992
•	North Texas Higher Education Authority Student
	Loan Revenue
	Series A-1 1.472% 4/1/40		362,868		352,091
	Series A-2 1.481% 7/1/30		75,000		73,934
•	Oklahoma State Student Loan Authority Revenue
	Series 1 1.498% 6/1/40		1,159,600		1,143,736
	Series A-2A 1.496% 9/1/37		95,000		94,220
Total Municipal Bonds (cost $2,747,632)					2,716,846

Statement of net assets
Delaware Diversified Floating Rate Fund

		Principal amount°		Value (U.S. $)
Non-Agency Asset-Backed Securities – 1.99%
•	Ally Master Owner Trust Series 2010-4 A
	1.355% 8/15/17	USD	100,000	$	100,433
•	American Express Issuance Trust Series 2007-2 A
	0.535% 7/15/13		200,000		200,184
•	Bank of America Credit Card Trust Series 2007-A6 A6
	0.345% 9/15/16		250,000		249,504
•	Capital One Multi-Asset Execution Trust
	Series 2004-A4 A4 0.505% 3/15/17		250,000		249,880
	Series 2005-A1 A1 0.355% 1/15/15		200,000		200,000
	CNH Equipment Trust Series 2010-A A4 2.49% 1/15/16		10,000		10,236
•	MBNA Credit Card Master Note Trust Series 2005-A2 A2
	0.365% 10/15/14		100,000		99,998
•#	Nissan Master Owner Trust Receivables
	Series 2010-AA A 144A 1.435% 1/15/15		375,000		377,555
@#•	Victoria Falls Series 2005-1A A2 144A 0.796% 2/17/17		375,908		360,372
Total Non-Agency Asset-Backed Securities
	(cost $1,850,691)				1,848,162

«Senior Secured Loans – 33.13%
	99 Cents Only Stores Term Loan B 7.00% 10/4/18		310,000		310,873
	Alliance HealthCare Services 5.50% 6/1/16		27,788		24,558
	Allied Security Holdings Tranche 2L 8.50% 1/21/18		150,000		146,625
	Anchor Glass Container 6.00% 2/3/16		14,247		14,252
	Aspect Software Tranche B 6.25% 5/7/16		24,563		24,573
	Attachmate 6.50% 11/21/16		617,188		608,960
	Autoparts Holdings
	1st Lien 6.50% 7/5/17		344,138		345,141
	2nd Lien 10.50% 7/5/18		345,000		334,650
	BNY ConvergEx Group
	7.50% 12/16/17		313,468		306,415
	8.75% 11/29/17		131,532		128,573
	Brickman Group Holdings Tranche B 7.25% 10/14/16		546,415		550,855
	Brock Holdings III
	10.00% 2/15/18		345,000		327,462
	Tranche B 6.00% 2/15/17		109,175		107,970
	Burlington Coat Factory Warehouse Tranche B
	6.25% 2/10/17		740,244		739,904

		Principal amount°		Value (U.S. $)
«Senior Secured Loans (continued)
	Cengage Learning Acquisitions
	2.25% 7/3/14	USD	748,047	$	664,999
	7.50% 7/7/14		73,539		69,189
	Charter Communications Operating Tranche B
	2.25% 3/6/14		29,889		29,784
	8.50% 3/6/14		17,696		17,761
	Chester Downs & Marina 12.375% 12/31/16		43,091		43,486
	Chrysler Group 6.00% 4/28/17		1,060,149		1,040,424
	CityCenter Holdings 7.50% 1/10/15		228,750		230,466
	Clear Channel Communication
	Tranche A 3.40% 7/30/14		543,991		499,928
	Tranche B 3.65% 1/29/16		445,000		358,394
	Consolidated Container 5.50% 9/28/14		790,000		696,780
	Datatel Tranche B 6.25% 7/19/18		230,000		232,329
	Delos Aircraft Tranche 2 7.00% 3/17/16		200,577		201,938
	Delta Air Lines Tranche B 5.50% 3/29/17		745,000		728,796
	Dynegy Power 1st Lien 9.25% 8/5/16		683,288		700,370
	Emdeon Tranche B 6.75% 8/3/18		900,000		909,913
	First Data Tranche B2 3.47% 9/24/14		907,410		863,804
	Frac Tech International Tranche B 6.25% 4/19/16		628,646		627,348
	GenOn Energy Tranche B 6.00% 6/20/17		786,110		778,642
	Goodman Global Tranche B 5.75% 10/28/16		237,596		239,081
	Grifols Tranche B 6.00% 6/4/16		164,175		165,488
	Harrah’s Operating
	Tranche B1 3.00% 1/28/15		540,000		490,277
	Tranche B2 4.468% 1/28/15		480,000		435,802
	Houghton International Tranche B 6.75% 1/11/16		331,051		331,326
	IASIS Healthcare Tranche B 5.00% 4/18/18		892,500		891,384
	Immucor Tranche B 7.25% 7/2/18		1,012,463		1,021,574
	International Lease Finance Tranche 1 6.75% 3/17/15		364,423		366,852
	Kinetic Concepts Tranche B 7.00% 1/12/18		950,000		967,318
	Level 3 Financing Tranche B2 5.75% 9/1/18		775,000		775,973
@	Mediacom Illinois Tranche D 5.50% 3/31/17		272,215		271,535
	MGM Resorts International Tranche E 7.00% 2/21/14		954,699		956,488
	Multiplan 4.75% 8/26/17		871,375		856,671
	NPC International 6.75% 12/28/18		230,000		232,013

Statement of net assets
Delaware Diversified Floating Rate Fund

		Principal amount°		Value (U.S. $)
«Senior Secured Loans (continued)
	Nuveen Investment
	5.50% 5/13/17	USD	260,826	$	259,881
	2nd Lien 12.50% 7/9/15		635,000		663,893
	Tranche B 6.70% 11/13/14		175,000		172,594
	OSI Restaurant Partners
	2.00% 6/14/13		53,841		51,151
	2.25% 6/14/13		30,869		30,292
	2.53% 6/13/14		858,939		842,894
	Pinnacle Foods Finance Tranche D 6.00% 4/2/14		21,243		21,394
	PQ 6.79% 7/30/15		495,000		463,691
@	Prime Healthcare Services Tranche B 7.25% 4/28/15		21,806		21,042
	Remy International Tranche B 6.25% 12/16/16		193,050		192,085
	Reynolds & Reynolds Tranche B 3.75% 3/9/18		920,714		922,440
	Reynolds Group Holdings 6.50% 7/7/18		1,036,135		1,041,314
	Roundy’s Supermarkets 10.50% 4/16/16		20,000		20,125
	RPI Finance Trust Tranche B 4.00% 5/10/18		1,169,125		1,170,825
	Sensus USA 2nd Lien 8.50% 4/13/18		565,000		557,938
	Surgical Care Affiliates Tranche B 5.50% 5/26/18		766,150		708,689
	Texas Competitive Electric Holdings 3.50% 10/10/14		655,000		446,546
	Toys R US Tranche B 6.00% 9/1/16		647,871		647,291
	Univision Communications 4.25% 3/29/17		645,104		608,010
	US TelePacific 5.75% 2/10/17		693,081		657,131
	Visant 5.25% 12/31/16		148,500		141,887
	Walter Energy Tranche B 4.00% 2/3/18		502,259		501,068
Total Senior Secured Loans (cost $30,693,135)					30,809,125

ΔSovereign Bonds – 1.01%
Australia – 0.59%
	Australian Government Inflation-Linked Bond
	4.00% 8/20/15	AUD	286,000		549,151
					549,151
South Africa – 0.42%
	South Africa Government Inflation-Linked Bond
	2.75% 1/31/22	ZAR	2,879,280		391,440
					391,440
Total Sovereign Bonds (cost $970,162)					940,591

		Principal amount°		Value (U.S. $)
Short-Term Investment – 0.06%
≠Discount Note – 0.06%
	Federal Home Loan Bank 0.02% 3/21/12	USD	52,832	$	52,831
Total Short-Term Investment (cost $52,831)					52,831

Total Value of Securities – 99.43%
	(cost $92,376,687)				92,465,180
Receivables and Other Assets
	Net of Liabilities – 0.57%				531,369	*
Net Assets Applicable to 10,986,746
	Shares Outstanding – 100.00%			$	92,996,549

Net Asset Value – Delaware Diversified Floating Rate Fund
	Class A ($37,739,984 / 4,457,768 Shares)				$8.47
Net Asset Value – Delaware Diversified Floating Rate Fund
	Class C ($22,739,578 / 2,686,816 Shares)				$8.46
Net Asset Value – Delaware Diversified Floating Rate Fund
	Class R ($5,193 / 614 Shares)				$8.46
Net Asset Value – Delaware Diversified Floating Rate Fund
	Institutional Class ($32,511,794 / 3,841,548 Shares)				$8.46

Components of Net Assets at January 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)				$	95,017,064
Distributions in excess of net investment income					(78,554	)
Accumulated net realized loss					(1,675,726	)
Net unrealized depreciation of investments and derivatives					(266,235	)
Total net assets				$	92,996,549

Statement of net assets
Delaware Diversified Floating Rate Fund


°	Principal amount shown is stated in the currency in which each security is denominated.
•	Variable rate security. The rate shown is the rate as of January 31, 2012. Interest rates reset periodically.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At January 31, 2012 the aggregate value of Rule 144A securities was $11,171,993, which represented 12.01% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
Δ	Securities have been classified by country of origin.
«	Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. Stated rate in effect at January 31, 2012.
@	Illiquid security. At January 31, 2012, the aggregate value of illiquid securities was $652,949, which represented 0.70% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
≠	The rate shown is the effective yield at time of purchase.
*	Includes foreign currency valued at $6,732 with a cost of $6,319.

Net Asset Value and Offering Price Per Share –
Delaware Diversified Floating Rate Fund
Net asset value Class A (A)	$	8.47
Sales charge (2.75% of offering price) (B)		0.24
Offering Price	$	8.71

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)		See the current prospectus for purchases of $100,000 or more.

The following foreign currency exchange contracts and swap contracts were outstanding at January 31, 2012¹:

Foreign Currency Exchange Contracts

									Unrealized
									Appreciation
Counterparty	Contracts to Receive (Deliver)				In Exchange For			Settlement Date	(Depreciation)
BAML		EUR	(233,850	)	USD	297,911		2/17/12		$	(8,211	)
BAML		ZAR	2,176,934		USD	(280,000	)	2/17/12			(876	)
HSBC		AUD	(548,513	)	USD	558,798		2/17/12			(24,134	)
MSC		EUR	(861,949	)	USD	1,096,942		2/17/12			(31,392	)
										$	(64,613	)

Swap Contracts
CDS Contracts

								Unrealized
					Annual Protection	Termination		Appreciation
Counterparty		Swap Referenced Obligation	Notional Value		Payments	Date		(Depreciation)
	Protection Purchased:
	ITRAXX Europe Subordinate
BCLY	Financials 16.1 5 yr CDS		EUR	1,520,000	5.00%		12/20/16	$	(110,458	)
	Kingdom of Belgium
MSC	5 yr CDS		USD	313,000	1.00%		12/20/16		(5,884	)
	People’s Republic of China
MSC	5 yr CDS			267,000	1.00%		12/20/16		(5,998	)
	Republic of France
MSC	5 yr CDS			667,000	0.25%		9/20/16		(2,834	)
MSC	5 yr CDS			476,000	0.25%		12/20/16		(2,112	)
Total								$	(127,286	)

Statement of net assets
Delaware Diversified Floating Rate Fund


Interest Rate Swap Contracts

			Fixed		Floating
			Interest Rate		Interest Rate		Unrealized
Counterparty &			Received		Received	Termination	Appreciation
Referenced Obligation	Notional Value		(Paid)		(Paid)	Date	(Depreciation)
JPMC
7 yr Interest Rate Swap		$3,600,000	(1.813	%)	0.523%	8/31/18		$	(104,493	)
10 yr Interest Rate Swap		6,800,000	(2.013	%)	0.551%	1/31/22			(66,643	)
MSC
3 yr Interest Rate Swap		1,400,000	(0.65	%)	0.523%	8/31/14			(2,735	)
5 yr Interest Rate Swap		5,000,000	(1.26	%)	0.523%	8/31/16			(79,801	)
Total								$	(253,672	)

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

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

Summary of abbreviations:
ARM — Adjustable Rate Mortgage
AUD — Australian Dollar
BAML — Bank of America Merrill Lynch
BCLY — Barclays Bank
CDS — Credit Default Swap
EUR — European Monetary Unit
HSBC — Hong Kong Shanghai Bank
JPMC — JPMorgan Chase Bank
MSC — Morgan Stanley Capital
REIT — Real Estate Investment Trust
REMIC — Real Estate Mortgage Investment Conduit
USD — United States Dollar
yr — Year
ZAR — South African Rand

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

Statement of assets and liabilities
Delaware Diversified Floating Rate Fund	January 31, 2012 (Unaudited)

Assets:
	Investments, at value	$	92,412,349
	Short-term investments, at value		52,831
	Foreign currencies, at value		6,732
	Receivable for fund shares sold		158,032
	Receivable for securities sold		4,409,376
	Dividends and interest receivable		391,265
	Total assets		97,430,585

Liabilities:
	Cash overdraft		2,609,844
	Payables for securities purchased		1,052,364
	Payables for fund shares redeemed		236,383
	Foreign currency contracts, at value		64,613
	Distribution payables		47,130
	Credit default swap contracts, at value¹		251,876
	Annual protection payments on swap contracts		86,033
	Due to manager and affiliates		71,299
	Other accrued expenses		14,494
	Total liabilities		4,434,036

Total Net Assets		$	92,996,549

	Investments, at cost	$	92,282,066
	Short-term investments, at cost		52,831
	Foreign currencies, at cost		6,319
	¹Including upfront payments received		129,083

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

Statement of operations
Delaware Diversified Floating Rate Fund	Six Months Ended January 31, 2012 (Unaudited)

Investment Income:
Interest			$	1,706,811

Expenses:
Management fees	$	260,386
Distribution expenses – Class A		70,609
Distribution expenses – Class C		118,653
Distribution expenses – Class R		15
Dividend disbursing and transfer agent fees and expenses		54,004
Registration fees		30,508
Accounting and administration expenses		20,507
Reports and statements to shareholders		16,775
Audit and tax		13,114
Pricing fees		5,911
Custodian fees		4,427
Dues and services		4,356
Legal fees		3,582
Trustees’ fees		2,792
Consulting fees		917
Insurance fees		379
Trustees’ expenses		189		607,124
Less fees waived				(2,450	)
Less waived distribution expenses – Class A				(11,768	)
Less waived distribution expenses – Class R				(2	)
Less expense paid indirectly				(13	)
Total operating expenses				592,891
Net Investment Income				1,113,920

Net Realized and Unrealized Gain (Loss) on:
Net realized gain (loss) on:
Investments	$	96,449
Foreign currencies		15,257
Foreign currency exchange contracts		(12,626	)
Swap contracts		(1,356,064	)
Net realized loss		(1,256,984	)
Net change in unrealized appreciation (depreciation) on:
Investments		(438,637	)
Foreign currencies		224
Foreign currency exchange contracts		(75,169	)
Swap contracts		(53,875	)
Net change in unrealized appreciation (depreciation)		(567,457	)
Net Realized and Unrealized Loss		(1,824,441	)

Net Decrease in Net Assets Resulting from Operations	$	(710,521	)

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

Statements of changes in net assets
Delaware Diversified Floating Rate Fund

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,113,920		$	931,057
Net realized loss		(1,256,984	)		(400,204	)
Net change in unrealized appreciation (depreciation)		(567,457	)		265,928
Net increase (decrease) in net assets
resulting from operations		(710,521	)		796,781

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(514,972	)		(556,521	)
Class C		(171,497	)		(145,889	)
Class R		(112	)		(107	)
Institutional Class		(410,834	)		(267,029	)
		(1,097,415	)		(969,546	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		6,715,838			70,402,085
Class C		1,740,125			26,119,241
Class R		—			1
Institutional Class		10,281,924			40,446,138

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		336,512			300,447
Class C		142,920			106,805
Class R		49			44
Institutional Class		320,171			218,783
		19,537,539			137,593,544

	Six Months			Year
	Ended			Ended
	1/31/12			7/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(23,583,546	)	$	(18,418,469	)
Class C		(4,516,676	)		(2,127,988	)
Institutional Class		(10,846,398	)		(10,733,235	)
		(38,946,620	)		(31,279,692	)
Increase (decrease) in net assets
derived from capital share transactions		(19,409,081	)		106,313,852
Net Increase (Decrease) in Net Assets		(21,217,017	)		106,141,087

Net Assets:
Beginning of period		114,213,566			8,072,479
End of period (including distributions in excess of net
investment income of $78,544 and $83,896, respectively)	$	92,996,549		$	114,213,566

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

Financial highlights
Delaware Diversified Floating Rate 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)

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

prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income (loss) to average net assets

prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

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

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

Six Months Ended			Year Ended		2/26/10²to
1/31/12¹			7/31/11		7/31/10
(Unaudited)
	$8.590		$8.490		$8.500


	0.094		0.166		0.088
	(0.120	)	0.114		(0.014	)
	(0.026	)	0.280		0.074


	(0.094	)	(0.180	)	(0.084	)
	(0.094	)	(0.180	)	(0.084	)

	$8.470		$8.590		$8.490

	(0.29%	)	3.33%		0.87%


	$37,740		$55,209		$2,959
	1.05%		1.05%		1.04%

	1.10%		1.34%		4.92%
	2.23%		1.92%		2.43%

	2.18%		1.63%		(1.45%	)
	38%		75%		39%

Financial highlights
Delaware Diversified Floating Rate Fund Class C

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)

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

prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income (loss) to average net assets

prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

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

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

Six Months Ended			Year Ended		2/26/10²to
1/31/12¹			7/31/11		7/31/10
(Unaudited)
	$8.590		$8.490		$8.500


	0.063		0.102		0.062
	(0.131	)	0.116		(0.014	)
	(0.068	)	0.218		0.048


	(0.062	)	(0.118	)	(0.058	)
	(0.062	)	(0.118	)	(0.058	)

	$8.460		$8.590		$8.490

	(0.78%	)	2.58%		0.56%


	$22,740		$25,769		$1,714
	1.80%		1.80%		1.79%

	1.80%		2.04%		5.62%
	1.48%		1.17%		1.68%

	1.48%		0.93%		(2.15%	)
	38%		75%		39%

Financial highlights
Delaware Diversified Floating Rate Fund Class R

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)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return⁵

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income (loss) to average net assets

prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

4 Includes adjustments from the period ending July 31, 2010 in the amount of $9 (or $0.010 per share) which impacted total return by -0.12%. The adjustment is to correct a misallocation of distributions among share classes which had no impact on distribution amounts reported and paid to shareholders.

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

Six Months Ended			Year Ended		2/26/10² to
1/31/12¹			7/31/11		7/31/10
(Unaudited)
	$8.590		$8.500		$8.500


	0.084		0.145		0.079
	(0.133	)	0.106	⁴	(0.004	)
	(0.049	)	0.251	⁴	0.075


	(0.081	)	(0.161	)	(0.075	)
	(0.081	)	(0.161	)	(0.075	)

	$8.460		$8.590	⁴	$8.500

	(0.56%	)	2.96%		0.89%


	$5		$5		$5
	1.30%		1.30%		1.29%

	1.40%		1.64%		5.22%
	1.98%		1.67%		2.18%

	1.88%		1.33%		(1.75%	)
	38%		75%		39%

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

Financial highlights
Delaware Diversified Floating Rate Fund Institutional Class

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)

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

prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income (loss) to average net assets

prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

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

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

Six Months Ended			Year Ended		2/26/10²to
1/31/12¹			7/31/11		7/31/10
(Unaudited)
	$8.590		$8.490		$8.500


	0.105		0.187		0.098
	(0.131	)	0.117		(0.016	)
	(0.026	)	0.304		0.082


	(0.104	)	(0.204	)	(0.092	)
	(0.104	)	(0.204	)	(0.092	)

	$8.460		$8.590		$8.490

	(0.28%	)	3.61%		0.97%


	$32,512		$33,231		$3,394
	0.80%		0.80%		0.79%

	0.80%		1.04%		4.62%
	2.48%		2.17%		2.68%

	2.48%		1.93%		(1.15%	)
	38%		75%		39%

Notes to financial statements
Delaware Diversified Floating Rate Fund	January 31, 2012 (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 Diversified Floating Rate Fund, Delaware Extended Duration Bond Fund and Delaware High-Yield Opportunities Fund. These financial statements and the related notes pertain to Delaware Diversified Floating Rate 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 2.75%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 0.75% if redeemed during the first 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 total return.

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 — U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Securities listed on a foreign exchange are valued at the last quoted sales price on the valuation date. Short-term debt securities are valued at market value. Other debt securities, credit default swaps (CDS) contracts and interest rate swap contracts are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Foreign currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. 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, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or

pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the 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 returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (July 31, 2010-July 31, 2011), and has concluded that no provision for federal income tax is required in the Fund’s financial statements.

Repurchase Agreements — The Fund may purchase certain U.S. government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Fund’s custodian or a third party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. At January 31, 2012, the Fund held no investments in repurchase agreements.

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

Notes to financial statements
Delaware Diversified Floating Rate Fund

1. Significant Accounting Policies (continued)

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. Interest income is recorded on the accrual basis. Discounts and premiums on non-convertible debt securities 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 dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. The Fund may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

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/or pay/reimburse the Fund to the extent necessary to ensure that total annual operating expenses, (excluding any 12b-1 plan expenses and certain nonroutine expenses), do not exceed 0.80% of average daily net assets of the Fund through November 28, 2012. 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 January 31, 2012, the Fund was charged $2,580 for these services.

DSC also provides dividend disbursing and transfer agency services. The Fund pays DSC a monthly asset-based fee for these services.

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

Investment management fee payable to DMC	$	39,384
Dividend disbursing, transfer agent and fund accounting
oversight fees and other expenses payable to DSC		2,319
Distribution fees payable to DDLP		27,827
Other expenses payable to DMC and affiliates*		1,769

Notes to financial statements
Delaware Diversified Floating Rate Fund

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

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 January 31, 2012, the Fund was charged $1,632 for internal legal and tax services provided by DMC and/or its affiliates’ employees.

For the six months ended January 31, 2012, DDLP earned $1,026 for commissions on sales of the Fund’s Class A shares. For the six months ended January 31, 2012, DDLP received gross CDSC commissions of $7,273 and $3,323 on redemption of the Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares.

3. Investments

For the six months ended January 31, 2012, the Fund made purchases of $ 38,092,260 and sales of $53,346,249 of investment securities other than U.S. government securities and short-term investments. For the six months ended January 31, 2012, the Fund made purchases of $495,826 and sales of $561,755 of long-term U.S. government securities.

At January 31, 2012, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At January 31, 2012, the cost of investments was $92,385,810. At January 31, 2012, net unrealized appreciation was $79,370, of which $975,836 related to unrealized appreciation of investments and $896,466 related to unrealized depreciation of investments.

Level 1 –

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

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

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

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

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of January 31, 2012:

	Level 1		Level 2			Level 3		Total
Agency, Asset- & Mortgage-Backed Securities		$—	$	4,060,329		$	360,372	$	4,420,701
Corporate Debt		—		84,334,211			—		84,334,211
Foreign Debt		—		940,591			—		940,591
Municipal Bonds		—		2,716,846			—		2,716,846
Short-Term Investments		—		52,831			—		52,831
Total		$—	$	92,104,808		$	360,372	$	92,465,180

Foreign Currency Exchange Contracts		$—	$	(64,613	)	$	—	$	(64,613	)
Swap Contracts		$—	$	(380,958	)	$	—	$	(380,958	)

Notes to financial statements
Delaware Diversified Floating Rate Fund

3. Investments (continued)

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

	Agency, Asset- &
	Mortgage-Backed Securities
Balance as of 7/31/11		$	—
Purchases			363,163
Net change in unrealized appreciation (depreciation)			(2,791	)
Balance as of 1/31/12		$	360,372

Net change in unrealized appreciation (depreciation)
from investments still held as of 1/31/12		$	(2,791	)

During the period ended January 31, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Fund. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

4. Dividend and Distribution Information

	Six Months	Year
	Ended	Ended
	1/31/12*	7/31/11
Ordinary income	$1,097,415	$969,546

*Tax information for the period ended January 31, 2012 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

Shares of beneficial interest	$	95,017,064
Undistributed ordinary income		49,767
Distributions payable		(47,130	)
Six month period realized losses		(1,637,956	)
Capital loss carryforwards as of 7/31/11		(37,551	)
Other temporary differences		(14,008	)
Unrealized appreciation		(333,637	)
Net assets	$	92,996,549

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, tax treatment of distribution payable, mark-to-market of forward foreign currency contracts, tax treatment of CDS and interest rate swap contracts, tax deferral of losses on straddles and tax treatment of market discount and premium on debt instrument.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of gain (loss) on foreign currency transactions, 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 January 31, 2012, the Fund recorded an estimate of these differences since the final tax characteristics cannot be determined until fiscal year end.

Undistributed net investment loss	$	(11,163	)
Accumulated net realized loss		11,163

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at July 31, 2011, if not utilized in future years, will expire as follows: $37,551 expires in 2018.

Notes to financial statements
Delaware Diversified Floating Rate Fund

5. Components of Net Assets on a Tax Basis (continued)

pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

For the six months ended January 31, 2012, the Fund had capital losses of $1,637,956 which may increase the capital loss carryforwards.

6. Capital Shares

Transactions in capital shares were as follows:

	Six Months		Year
	Ended		Ended
	1/31/12		7/31/11
Shares sold:
Class A	794,050		8,177,801
Class C	206,788		3,032,005
Class R	—		—	*
Institutional Class	1,221,783		4,686,554

Shares issued upon reinvestment of dividends and distributions:
Class A	40,003		34,854
Class C	16,995		12,399
Class R	6		11
Institutional Class	38,074		25,419
	2,317,699		15,969,043

Shares repurchased:
Class A	(2,800,492	)	(2,137,077	)
Class C	(536,343	)	(247,017	)
Institutional Class	(1,286,347	)	(1,243,757	)
	(4,623,182	)	(3,627,851	)
Net increase (decrease)	(2,305,483	)	12,341,192

*Shares rounds to less than 1.

7. Line of Credit

of their net assets under the agreement. On August 1, 2011, the Fund, along with the other Participants, entered into an amendment for a $100,000,000 revolving line of credit. The line of credit under the agreement expired on November 15, 2011.

8. Derivatives

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

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

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

Swap Contracts — The Fund enters into interest rate swap contracts and CDS contracts in the normal course of pursuing its investment objectives. The Fund may use interest rate swaps to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets.

Notes to financial statements
Delaware Diversified Floating Rate Fund

8. Derivatives (continued)

Interest Rate Swaps. An interest rate swap contract is an exchange of interest rates between counterparties. In one instance, an interest rate swap involves payments received by the Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation/depreciation on swap contracts. Upon periodic payment/receipt or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the interest rate swap contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.

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

During the six months ended January 31, 2012, the Fund entered into CDS contracts as a purchaser and seller of protection. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement. At January 31, 2012, the net unrealized depreciation of credit default swaps was $127,286. The Fund posted $210,000 as collateral for certain open derivatives. If a credit event had occurred for all swap transactions where collateral posting was required as of

January 31, 2012, the Fund would have received EUR 1,520,000 and USD 1,723,000 less the value of the contracts’ related reference obligations. The Fund received securities collateral of $49,000 for certain open derivatives.

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

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

Fair values of derivative instruments as of January 31, 2012 were as follows:

Asset Derivatives

Liability Derivatives

Statement of Asset

Statement of Assets

and Liabilities

Location

Fair Value

Location

Fair Value

Forward currency exchange contracts
(Foreign currency exchange contracts)

Receivables

$—

Payables

(64,613

)

Credit and interest contracts
(Swap contracts)

Receivables

—

Payables

(380,958

)

Total

$—

(445,571

)

Notes to financial statements
Delaware Diversified Floating Rate Fund

8. Derivatives (continued)

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


						Change in Unrealized
		Realized Gain				Appreciation
		or Loss on				or Depreciation
	Location of Gain or Loss on	Derivatives				on Derivatives
	Derivatives Recognized in	Recognized in				Recognized in
	Income	Income				Income
Forward currency exchange contracts
(Foreign currency exchange contracts)	Net realized loss on foreign currency contracts and net change in unrealized appreciation (depreciation) of foreign currency exchange contracts		$	(12,626	)		$	(75,169	)
Credit and interest contracts
(Swap contracts)	Net realized loss on swap contracts and net change in unrealized appreciation (depreciation) of swap contracts			(1,356,064	)			(53,875	)
Total			$	(1,368,690	)		$	(129,044	)

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

	Asset		Liability
	Derivative		Derivative
	Volume		Volume
Foreign currency exchange contracts (average cost)	USD	122,612	USD	1,924,033
Swap contracts (average notional value)		22,677		14,705,047
			EUR	1,683,465

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

Cash collateral received is generally invested in the Delaware Investments Collateral Fund No. 1 (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of funds managed by DMC, that participate in BNY Mellon’s securities lending program. The Collective Trust may invest in U.S. government securities and high quality corporate debt, asset-backed and other money market securities and in repurchase agreement collateralized by such securities, provided that the Collective Trust will generally have a dollar-weighted average portfolio maturity of 60 days or less. 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 are 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.

Notes to financial statements
Delaware Diversified Floating Rate Fund

9. Securities Lending (continued)

The Collective Trust used for the investment of cash collateral received from borrowers of securities seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The 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.

During the six months ended January 31, 2012, the Fund had no securities out on loan.

10. 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 and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the 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 effect 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-today functions of determining whether individual securities are liquid for purposes of the Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 15% limit on investments in illiquid securities. Rule 144A and illiquid securities have been identified on the statement of net assets.

11. Contractual Obligations

12. Subsequent Events

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

Other Fund information
(Unaudited)
Delaware Diversified Floating Rate Fund

Board Consideration of Delaware Diversified Floating Rate Fund Investment
Advisory Agreement

At a meeting held on August 16-17, 2011 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreement for the Delaware Diversified Floating Rate Fund (the “Fund”). In making its decision, the Board considered information furnished specifically in connection with the renewal of the Investment Advisory Agreement with Delaware Management Company (“DMC”), which included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Fund, the costs of such services to the Fund, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2011 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared the Fund’s investment performance and expenses with those of other comparable mutual funds. The independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

Nature, Extent and Quality of Service. The Board considered the services provided by Delaware Investments to the Fund and its shareholders. In reviewing the nature, extent and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Fund, compliance of portfolio managers with the investment policies, strategies and restrictions for the Fund, compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Investments^® Family of Funds complex and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of the Fund’s investment advisor and the emphasis placed on research in the investment process. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board noted that in July 2011 Management implemented measures to reduce overall costs and improve transfer agent and shareholder servicing functions through outsourcing. It is expected that such measures will improve the quality and lower the cost of delivering transfer agent and

shareholder servicing services to the Fund. The Board once again noted the benefits provided to Fund shareholders through 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 the Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Lipper currently classifies the Fund as an ultra-short obligation fund. However, Management believes that it would be more appropriate to include the Fund in the loan participation funds category. Accordingly, the Lipper report prepared for the Fund compares the Fund’s performance to two separate Performance Universes consisting of the Fund and all retail and institutional ultra-short obligation funds and all retail and institutional loan participation funds. When compared to other ultra-short obligation funds, the Lipper report comparison showed that the Fund’s total return for the one-year period was in the first quartile of its Performance Universe. When compared to other loan participation funds, the Lipper report comparison showed that the Fund’s total return for the one-year period was in the fourth quartile of its Performance Universe. The Board noted that, when compared to other loan participation funds, the Fund’s performance results were not in line with the Board’s objective. In evaluating the Fund’s performance, the Board considered the Fund’s recent inception. The Board also considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve Fund performance and meet the Board’s performance objective.

Other Fund information
(Unaudited)
Delaware Diversified Floating Rate Fund

Board Consideration of Delaware Diversified Floating Rate Fund Investment
Advisory Agreement (continued)

Comparative Expenses. The Board considered expense comparison data for the Delaware Investments^® Family of Funds. Management provided the Board with information on pricing levels and fee structures for the Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of the Fund versus effective management fees and expense ratios of a group of similar funds as selected by Lipper (the “Expense Group”). In reviewing comparative costs, the 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) within the Expense Group, taking into account any applicable breakpoints and fee waivers. The Fund’s total expenses were also compared with those of its Expense Group. The Lipper total expenses, for comparative consistency, were shown by Lipper for Class A shares and comparative total expenses including 12b-1 and non 12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit the Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraph summarizes the expense results for the Fund and the Board’s view of such expenses.

When compared to other ultra-short obligation funds, the expense comparisons for the Fund showed that its contractual management fee and total expenses were in the quartile with the highest expenses of its Expense Group. When compared to other loan participation funds, the expense comparisons for the Fund showed that its contractual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board noted that, when compared to other ultra-short obligation funds, the Fund’s total expenses were not in line with the Board’s objective. In evaluating total expenses, the Board considered fee waivers in place through November 2011 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

considered 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. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of Delaware Investments.

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 Trust) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Trust, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Trust for the fiscal year ending July 31, 2010. Because the Fund launched on February 26, 2010, E&Y has not issued any audit reports on the Fund. Neither the Trust nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Trust’s financial statements.

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 Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Frances A. Sevilla-Sacasa Executive Advisor to Dean, University of Miami School of Business Administration Coral Gables, FL	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

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 Diversified Floating Rate Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

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

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

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	April 4, 2012

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

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	April 4, 2012

/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	April 4, 2012

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