Delaware Group Government Fund NCSRS Certified semi-annual shareholder report (management investment company)

Delaware Group Government Fund N-CSRSCertified 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^®Government Fund

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, 2017

Item 1. Reports to Stockholders

LOGO

Semiannual report

Fixed income mutual fund

Delaware Emerging Markets Debt Fund

January 31, 2017

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 delawareinvestments.com/literature 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 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 Emerging Markets Debt Fund at delawareinvestments.com/literature.

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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.

Neither Delaware Investments nor its affiliates referred to in this document are authorized deposit-taking institutions for the purpose of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited (MBL), a subsidiary of Macquarie Group Limited and an affiliate of Delaware Investments. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Fund is governed by U.S. laws and regulations.

Table of contents


Disclosure of Fund expenses			1
Security type / sector allocation			3
Schedule of investments			4
Statement of assets and liabilities			12
Statement of operations			14
Statements of changes in net assets			16
Financial highlights			18
Notes to financial statements			26
Other Fund information			42
About the organization			46

Unless otherwise noted, views expressed herein are current as of Jan. 31, 2017, and subject to change for events occurring after such date.

The Fund is not FDIC insured and is 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 marks cited are the property of their respective owners.

Disclosure of Fund expenses

For the six-month period August 1, 2016 to January 31, 2017 (Unaudited)

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 Aug. 1, 2016 to Jan. 31, 2017.

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

For the six-month period August 1, 2016 to January 31, 2017 (Unaudited)

Delaware Emerging Markets Debt Fund

Expense analysis of an investment of $1,000


	Beginning		Ending			Expenses
	Account Value		Account Value		Annualized	Paid During Period
	8/1/16		1/31/17		Expense Ratio	8/1/16 to 1/31/17*
Actual Fund return^†
Class A		$1,000.00		$1,010.70	1.00%		$5.07
Class C		1,000.00		1,010.70	1.00%		5.07
Class R		1,000.00		1,011.90	1.00%		5.07
Institutional Class		1,000.00		1,011.90	1.00%		5.07
Hypothetical 5% return (5% return before expenses)
Class A		$1,000.00		$1,020.16	1.00%		$5.09
Class C		1,000.00		1,020.16	1.00%		5.09
Class R		1,000.00		1,020.16	1.00%		5.09
Institutional Class		1,000.00		1,020.16	1.00%		5.09

*	“Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

^†	Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns.

Security type / sector allocation


Delaware Emerging Markets Debt Fund		As of January 31, 2017 (Unaudited)

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.


Security type / sector			Percentage of net assets
Corporate Bonds			66.31%
Banking			9.52%
Basic Industry			10.90%
Capital Goods			3.12%
Communications			9.50%
Consumer Cyclical			4.71%
Consumer Non-Cyclical			7.39%
Electric			6.50%
Energy			12.55%
Real Estate			0.94%
Transportation			1.18%
Loan Agreement			1.90%
Regional Bond			0.74%
Sovereign Bonds			26.59%
Options Purchased			0.02%
Short-Term Investments			3.27%
Total Value of Securities			98.83%
Receivables and Other Assets Net of Liabilities			1.17%
Total Net Assets			100.00%


Schedule of investments
Delaware Emerging Markets Debt Fund		January 31, 2017 (Unaudited)


	Principal amount°		Value (U.S. $)

Corporate Bonds – 66.31%

Banking – 9.52%
Banco Nacional de Costa Rica 144A 5.875% 4/25/21 #	235,000	$	245,634
BBVA Bancomer 6.50% 3/10/21	250,000		268,670
Export Credit Bank of Turkey 144A 5.375% 2/8/21 #	275,000		273,974
Export-Import Bank of India 144A 3.375% 8/5/26 #	200,000		188,957
ICICI Bank 144A 4.00% 3/18/26 #	200,000		196,924
SUAM Finance 144A 4.875% 4/17/24 #	220,000		228,800
Turkiye Garanti Bankasi 144A 6.25% 4/20/21 #	210,000		216,066
Woori Bank 144A 4.75% 4/30/24 #	295,000		301,775

			1,920,800

Basic Industry – 10.90%
Equate Petrochemical 144A 3.00% 3/3/22 #	255,000		247,842
MMC Norilsk Nickel
144A 5.55% 10/28/20 #	250,000		266,816
144A 6.625% 10/14/22 #	200,000		223,596
OCP 144A 4.50% 10/22/25 #	500,000		480,913
Southern Copper 5.875% 4/23/45	195,000		199,703
Suzano Austria 144A 5.75% 7/14/26 #	240,000		240,912
Vale Overseas 5.875% 6/10/21	245,000		262,763
Vedanta Resources 144A 6.375% 7/30/22 #	275,000		276,100

			2,198,645

Capital Goods – 3.12%
Cemex 144A 7.75% 4/16/26 #	250,000		279,175
St. Marys Cement 144A 5.75% 1/28/27 #	200,000		196,250
Union Andina de Cementos 144A 5.875% 10/30/21 #	150,000		155,265

			630,690

Communications – 9.50%
Cablevision 144A 6.50% 6/15/21 #	180,000		185,850
Columbus Cable Barbados 144A 7.375% 3/30/21 #	250,000		266,250
Digicel Group
144A 7.125% 4/1/22 #	200,000		161,018
144A 8.25% 9/30/20 #	300,000		267,750
Millicom International Cellular 144A 6.00% 3/15/25 #	200,000		204,392
MTS International Funding 144A 5.00% 5/30/23 #	200,000		206,531
Myriad International Holdings 144A 5.50% 7/21/25 #	200,000		204,512
VimpelCom Holdings 144A 5.95% 2/13/23 #	200,000		209,740


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Communications (continued)
VTR Finance 144A 6.875% 1/15/24 #	200,000	$	210,500

			1,916,543

Consumer Cyclical – 4.71%
Alibaba Group Holding 3.125% 11/28/21	200,000		201,267
Cencosud 144A 6.625% 2/12/45 #	355,000		352,621
JD.com 3.125% 4/29/21	400,000		396,193

			950,081

Consumer Non-Cyclical – 7.39%
Becle 144A 3.75% 5/13/25 #	200,000		191,969
BRF 144A 4.35% 9/29/26 #	295,000		279,143
Gruma 144A 4.875% 12/1/24 #	200,000		207,690
JBS USA 144A 5.75% 6/15/25 #	150,000		154,125
Kernel Holding 144A 8.75% 1/31/22 #	220,000		221,375
Marfrig Holdings Europe 144A 8.00% 6/8/23 #	200,000		211,300
Raizen Fuels Finance 144A 5.30% 1/20/27 #	225,000		225,113

			1,490,715

Electric – 6.50%
AES Andres 144A 7.95% 5/11/26 #	200,000		210,004
AES Gener 144A 8.375% 12/18/73 #●	200,000		213,560
Enel Americas 4.00% 10/25/26	185,000		180,560
Pampa Energia 144A 7.50% 1/24/27 #	295,000		291,976
Perusahaan Listrik Negara 144A 5.50% 11/22/21 #	200,000		216,076
Trinidad Generation 144A 5.25% 11/4/27 #	200,000		198,550

			1,310,726

Energy – 12.55%
CNOOC Finance 2015 Australia 2.625% 5/5/20	400,000		399,080
Ecopetrol
5.875% 9/18/23	50,000		53,673
7.375% 9/18/43	160,000		164,592
Empresa Nacional del Petroleo 144A 4.75% 12/6/21 #	150,000		156,786
Pertamina Persero
144A 5.25% 5/23/21 #	200,000		211,999
144A 5.625% 5/20/43 #	200,000		190,284
Petrobras Global Finance
5.375% 1/27/21	165,000		166,650
7.375% 1/17/27	165,000		172,128
8.375% 5/23/21	105,000		117,054
Petroleos Mexicanos
144A 4.607% 3/11/22 #●	90,000		93,600
6.75% 9/21/47	170,000		160,854
Petronas Global Sukuk 144A 2.707% 3/18/20 #	205,000		207,192

Schedule of investments

Delaware Emerging Markets Debt Fund


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Energy (continued)
Tengizchevroil Finance Co. International 144A 4.00% 8/15/26 #	200,000	$	188,238
YPF
144A 8.50% 3/23/21 #	125,000		135,781
144A 23.854% 7/7/20 #●	100,000		113,250

			2,531,161

Real Estate – 0.94%
Trust F 144A 5.25% 1/30/26 #	200,000		190,000

			190,000

Transportation – 1.18%
Aeropuertos Argentina 144A 6.875% 2/1/27 #	235,000		237,937

			237,937

Total Corporate Bonds (cost $13,165,132)			13,377,298



Loan Agreement – 1.90%«

Republic of Angola (Unsecured) 7.57% 12/16/23	446,250		382,659

Total Loan Agreement (cost $446,250)			382,659



Regional Bond – 0.74%D

Argentina – 0.74%
Provincia de Buenos Aires 144A 7.875% 6/15/27 #	150,000		149,805

Total Regional Bond (cost $154,991)			149,805



Sovereign Bonds – 26.59%D

Argentina – 1.65%
Argentine Republic Government International Bond
144A 5.625% 1/26/22 #	125,000		125,469
144A 7.125% 7/6/36 #	220,000		207,900

			333,369

Azerbaijan – 0.99%
Republic of Azerbaijan International Bond 144A 4.75% 3/18/24 #	200,000		199,438

			199,438

Bahrain – 1.02%
Bahrain Government International Bond 144A 7.00% 10/12/28 #	200,000		205,566

			205,566

Bermuda – 0.95%
Bermuda Government International Bond 144A 3.717% 1/25/27 #	200,000		191,366

			191,366


		Principal amount°		Value (U.S. $)

Sovereign BondsD (continued)

Brazil – 1.49%
Brazil Notas do Tesouro Nacional Series F 10.00% 1/1/25	BRL	282,000	$	85,666
Brazilian Government International Bond 6.00% 4/7/26		200,000		214,750

				300,416

Colombia – 1.22%
Colombia Government International Bond 5.00% 6/15/45		250,000		245,625

				245,625

Costa Rica – 0.97%
Costa Rica Government International Bond 7.158% 3/12/45		200,000		195,306

				195,306

Croatia – 1.17%
Croatia Government International Bond 144A 6.375% 3/24/21 #		215,000		235,694

				235,694

Ecuador – 1.05%
Ecuador Government International Bond 144A 9.65% 12/13/26 #		200,000		212,100

				212,100

Honduras – 0.74%
Honduras Government International Bond 144A 6.25% 1/19/27 #		150,000		149,700

				149,700

Hungary – 0.55%
Hungary Government International Bond 5.75% 11/22/23		100,000		111,824

				111,824

Indonesia – 1.54%
Indonesia Government International Bond 144A 3.70% 1/8/22 #		200,000		203,236
Indonesia Treasury Bond 9.00% 3/15/29	IDR	1,321,000,000		107,184

				310,420

Jamaica – 1.11%
Jamaica Government International Bond 8.00% 3/15/39		200,000		225,006

				225,006

Jordan – 1.21%
Jordan Government International Bond 144A 5.75% 1/31/27 #		255,000		243,596

				243,596

Mongolia – 1.05%
Mongolia Government International Bond 144A 10.875% 4/6/21 #		200,000		211,932

				211,932

Schedule of investments

Delaware Emerging Markets Debt Fund


		Principal amount°		Value (U.S. $)

Sovereign BondsD (continued)

Peru – 0.95%
Peruvian Government International Bond 6.95% 8/12/31	PEN	600,000	$	192,096

				192,096

Portugal – 0.67%
Portugal Government International Bond 144A 5.125% 10/15/24 #		140,000		135,776

				135,776

Russia – 1.08%
Russian Foreign Bond - Eurobond 144A 5.625% 4/4/42 #		200,000		217,274

				217,274

Saudi Arabia – 0.97%
Saudi Government International Bond 144A 2.375% 10/26/21 #		200,000		194,980

				194,980

Serbia – 1.02%
Republic of Serbia 144A 4.875% 2/25/20 #		200,000		205,770

				205,770

South Africa – 2.44%
Republic of South Africa Government Bond 8.00% 1/31/30	ZAR	3,065,000		206,551
Republic of South Africa Government International Bond 5.875% 5/30/22		260,000		285,960

				492,511

Sri Lanka – 1.98%
Sri Lanka Government International Bond
144A 6.00% 1/14/19 #		200,000		206,656
144A 6.125% 6/3/25 #		200,000		192,795

				399,451

Uruguay – 0.77%
Uruguay Government International Bond 5.10% 6/18/50		165,000		155,100

				155,100

Total Sovereign Bonds (cost $5,374,280)				5,364,316


	Number of contracts

Options Purchased – 0.02%

Currency Call Option
USD vs TWD strike price $32.50, expiration date 4/17/17		1,250,000		2,862


Total Options Purchased (cost $7,625)				2,862


	Principal amount°		Value (U.S. $)

Short-Term Investments – 3.27%

Discount Notes – 2.80%≠
Federal Home Loan Bank
0.389% 2/3/17		69,453	$	69,451
0.495% 2/24/17		76,141		76,122
0.505% 3/10/17		65,989		65,955
0.51% 2/15/17		5,999		5,998
0.516% 2/6/17		17,997		17,995
0.52% 2/27/17		86,195		86,171
0.52% 2/10/17		57,464		57,458
0.521% 3/24/17		103,102		103,029
0.53% 4/25/17		82,486		82,387

				564,566

U.S. Treasury Obligation – 0.47%≠
U.S. Treasury Bill 0.465% 2/9/17		95,176		95,166

				95,166

Total Short-Term Investments (cost $659,711)				659,732


Total Value of Securities – 98.83% (cost $19,807,989)			$	19,936,672

#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Jan. 31, 2017, the aggregate value of Rule 144A securities was $14,123,164, which represents 70.01% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”

≠	The rate shown is the effective yield at the time of purchase.

Loan agreements generally pay interest at rates which are periodically reset 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 U.S. banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Loan agreements may be subject to restrictions on resale. Stated rate in effect at Jan. 31, 2017.

°	Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency.

D	Securities have been classified by country of origin.

●	Variable rate security. Each rate shown is as of Jan. 31, 2017. Interest rates reset periodically.

Schedule of investments

Delaware Emerging Markets Debt Fund

The following foreign currency exchange contracts and swap contracts were outstanding at Jan. 31, 2017:¹

Foreign Currency Exchange Contracts


Counterparty	Contracts to Receive (Deliver)			In Exchange For				Settlement Date		Unrealized Appreciation (Depreciation)
BNP		BRL	379,354		USD	(118,659	)		3/3/17	$	839
GSC		COP	419,457,372		USD	(142,614	)		3/3/17		45
TD		MXN	46,032		USD	(2,136	)		3/3/17		62
UBS		RUB	8,464,609		USD	(140,748	)		3/3/17		(491	)

										$	455

Swap Contracts

CDS Contracts²

Counterparty

Swap
Referenced

Obligation

Notional Value³

Annual

Protection

Payments

Termination

Date

Upfront

Payment

Paid

(Received)

Unrealized

Appreciation

(Depreciation)⁴

Protection
Purchased:

HSBC

CDX.EM.26⁵

570,000

1.00%

12/20/21

37,063

(2,794

)

The use of foreign currency exchange contracts and swap contracts involve elements of market risk and risks in excess of the amounts disclosed in these financial statements. The foreign currency exchange contracts and 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 6 in “Notes to financial statements.”

²A Credit Default Swap (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). 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 daily as unrealized appreciation or depreciation. 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.

³Notional value shown is stated in U.S. Dollars unless noted that the swap is denominated in another currency.

⁴Unrealized appreciation (depreciation) does not include periodic interest payments (receipts) on swap contracts accrued daily in the amount of $(681).

⁵Markit’s CDX.EM Index is composed of fourteen sovereign issuers from the following regions: Latin America, Middle East, Eastern Europe, Africa, and Asia.

Summary of abbreviations:

BNP – BNP Paribas

BRL – Brazilian Real

CDX.EM – Credit Default Swap Index Emerging Markets

COP – Colombian Peso

GSC – Goldman Sachs Capital

HSBC – Hong Kong Shanghai Bank

IDR – Indonesian Rupiah

MXN – Mexican Peso

PEN – Peruvian Nuevo Sol

RUB – Russian Ruble

TD – Toronto Dominion Bank

TWD – Taiwan Dollar

UBS – Union Bank of Switzerland

USD – U.S. Dollar

ZAR – South African Rand

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


Statement of assets and liabilities
Delaware Emerging Markets Debt Fund		January 31, 2017 (Unaudited)


Assets:
Investments, at value¹	$	19,276,940
Short-term investments, at value²		659,732
Cash		99,702
Foreign currencies, at value³		5,849
Receivable for securities sold		271,883
Interest receivable		249,672
Upfront payments paid on credit default swap contracts		37,063
Unrealized appreciation on foreign currency exchange contracts		946

Total assets		20,601,787

Liabilities:
Payable for securities purchased		401,692
Unrealized depreciation on credit default swap contracts		2,794
Swaps payment payable		681
Unrealized depreciation on foreign currency exchange contracts		491
Audit and tax fees payable		18,540
Investment management fees payable to affiliates		1,928
Other accrued expenses		1,123
Dividend disbursing and transfer agent fees and expenses payable to affiliates		342
Accounting and administration expenses payable to affiliates		80
Trustees’ fees and expenses payable		59
Legal fees payable to affiliates		33
Reports and statements to shareholders payable to affiliates		21
Capital gain tax payable		394

Total liabilities		428,178

Total Net Assets	$	20,173,609


Net Assets Consist of:
Paid-in capital	$	20,356,205
Undistributed net investment income		9,508
Accumulated net realized loss on investments		(317,515	)
Net unrealized appreciation of investments		133,052
Net unrealized appreciation of foreign currencies		142
Net unrealized appreciation of foreign currency exchange contracts		455
Net unrealized depreciation of options purchased		(4,763	)
Net unrealized depreciation of swap contracts		(3,475	)

Total Net Assets	$	20,173,609


Class A:
Net assets	$	2,308
Shares of beneficial interest outstanding, unlimited authorization, no par		275
Net asset value per share	$	8.39
Sales charge		4.50	%
Offering price per share, equal to net asset value per share / (1 – sales charge)	$	8.79

Class C:
Net assets	$	2,298
Shares of beneficial interest outstanding, unlimited authorization, no par		274
Net asset value per share	$	8.39

Class R:
Net assets	$	2,311
Shares of beneficial interest outstanding, unlimited authorization, no par		275
Net asset value per share	$	8.40

Institutional Class:
Net assets	$	20,166,692
Shares of beneficial interest outstanding, unlimited authorization, no par		2,399,934
Net asset value per share	$	8.40


¹Investments, at cost	$	19,148,278
²Short-term investments, at cost		659,711
³Foreign currencies, at cost		5,914

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


Statement of operations
Delaware Emerging Markets Debt Fund		Six months ended January 31, 2017


Investment Income:
Interest	$	534,556
Dividends		5,011

		539,567

Expenses:
Management fees		75,694
Distribution expenses – Class A		3
Distribution expenses – Class C		11
Distribution expenses – Class R		6
Registration fees		32,896
Audit and tax fees		22,409
Reports and statements to shareholders expenses		11,083
Legal fees		6,577
Custodian fees		3,416
Accounting and administration expenses		3,162
Dividend disbursing and transfer agent fees and expenses		3,094
Trustees’ fees and expenses		476
Other		7,545

Expenses before dividends on short sales and interest expense		166,372
Interest expense		39

		166,411
Less expenses waived		(65,414	)
Less waived distribution expenses – Class A		(3	)
Less waived distribution expenses – Class C		(11	)
Less waived distribution expenses – Class R		(6	)

Total operating expenses		100,977

Net Investment Income		438,590


Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments¹	$	347,508
Foreign currencies		(28,081	)
Foreign currency exchange contracts		18,472
Futures contracts		20,075
Swap contracts		(1,004	)

Net realized gain		356,970

Net change in unrealized appreciation (depreciation) of:
Investments²		(551,808	)
Foreign currencies		(875	)
Foreign currency exchange contracts		1,994
Options purchased		(4,763	)
Swap contracts		(3,475	)

Net change in unrealized appreciation (depreciation)		(558,927	)

Net Realized and Unrealized Loss		(201,957	)

Net Increase in Net Assets Resulting from Operations	$	236,633

¹Includes $903 capital gains taxes paid.

² Includes $437 capital gains taxes accrued.

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

Statements of changes in net assets

Delaware Emerging Markets Debt Fund


	Six months
	ended
	1/31/17			Year ended
	(Unaudited)			7/31/16
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	438,590		$	815,892
Net realized gain (loss)		356,970			(85,028	)
Net change in unrealized appreciation (depreciation)		(558,927	)		668,592

Net increase in net assets resulting from operations		236,633			1,399,456


Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(49	)		(87	)
Class C		(48	)		(86	)
Class R		(49	)		(86	)
Institutional Class		(426,615	)		(755,933	)


		(426,761	)		(756,192	)


Capital Share Transactions:
Net asset value of shares issued upon reinvestment of dividends and distributions:
Class A		49			87
Class C		48			86
Class R		49			86
Institutional Class		426,615			755,933

		426,761			756,192

Increase in net assets derived from capital share transactions		426,761			756,192

Net Increase in Net Assets		236,633			1,399,456

Net Assets:
Beginning of period		19,936,976			18,537,520

End of period	$	20,173,609		$	19,936,976


Undistributed (distributions in excess of) net investment income	$	9,508		$	(2,321	)

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

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Financial highlights

Delaware Emerging Markets Debt 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

Net realized gain

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 excluding interest expense

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 excluding interest expense

Ratio of net investment income to average net assets

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

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

⁴

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

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


Six months ended										9/30/13²
	1/31/17¹ (Unaudited)			Year ended						to 7/31/14
	1/31/17¹ (Unaudited)			7/31/16			7/31/15			to 7/31/14

	$	8.480		$	8.210		$	8.840		$	8.500


		0.185			0.358			0.371			0.323
		(0.095	)		0.241			(0.604	)		0.333

		0.090			0.599			(0.233	)		0.656



		(0.180	)		(0.329	)		(0.303	)		(0.316	)
		—			—			(0.094	)		—

		(0.180	)		(0.329	)		(0.397	)		(0.316	)


	$	8.390		$	8.480		$	8.210		$	8.840


		1.07%			7.62%			(2.65%	)		7.86%


	$	3		$	3		$	2		$	2
		1.00%			1.01%			1.08%			1.31%
		1.00%			1.03%			1.14%			1.50%
		1.65%			2.04%			2.03%			2.48%
		4.35%			4.44%			4.46%			4.66%
		4.35%			4.42%			4.40%			4.47%
		3.70%			3.41%			3.51%			3.49%
		69%			232%			288%			152%

Financial highlights

Delaware Emerging Markets Debt 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

Net realized gain

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 excluding interest expense

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 excluding interest expense

Ratio of net investment income to average net assets

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	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

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


Six months ended										9/30/13²
	1/31/17¹			Year ended						to
	(Unaudited)			7/31/16			7/31/15			7/31/14

	$	8.480		$	8.220		$	8.840		$	8.500


		0.185			0.359			0.371			0.271
		(0.095	)		0.230			(0.594	)		0.333

		0.090			0.589			(0.223	)		0.604



		(0.180	)		(0.329	)		(0.303	)		0.264
		—			—			(0.094	)		—

		(0.180	)		(0.329	)		(0.397	)		0.264


	$	8.390		$	8.480		$	8.220		$	8.840


		1.07%			7.49%			(2.53%	)		7.22%


	$	2		$	2		$	2		$	2
		1.00%			1.01%			1.08%			2.03%
		1.00%			1.03%			1.14%			2.22%
		1.65%			2.79%			2.78%			3.20%
		4.35%			4.44%			4.46%			3.94%
		4.35%			4.42%			4.40%			3.75%
		3.70%			2.66%			2.76%			2.77%
		69%			232%			288%			152%

Financial highlights

Delaware Emerging Markets Debt 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

Net realized gain

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 excluding interest expense

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 excluding interest expense

Ratio of net investment income to average net assets

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

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

⁴

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

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


Six months ended										9/30/13²
	1/31/17¹			Year ended						to
	(Unaudited)			7/31/16			7/31/15			7/31/14

	$	8.480		$	8.220		$	8.840		$	8.500


		0.185			0.359			0.371			0.306
		(0.085	)		0.230			(0.594	)		0.332

		0.100			0.589			(0.223	)		0.638



		(0.180	)		(0.329	)		(0.303	)		(0.298	)
		—			—			(0.094	)		—

		(0.180	)		(0.329	)		(0.397	)		(0.298	)


	$	8.400		$	8.480		$	8.220		$	8.840


		1.19%			7.49%			(2.53%	)		7.64%


	$	2		$	2		$	2		$	2
		1.00%			1.01%			1.08%			1.55%
		1.00%			1.03%			1.14%			1.74%
		1.65%			2.29%			2.28%			2.72%
		4.35%			4.44%			4.46%			4.42%
		4.35%			4.42%			4.40%			4.23%
		3.70%			3.16%			3.26%			3.25%
		69%			232%			288%			152%

Financial highlights

Delaware Emerging Markets Debt 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

Net realized gain

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 excluding interest expense

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 excluding interest expense

Ratio of net investment income to average net assets

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

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

⁴

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

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


Six months ended										9/30/13²
	1/31/17¹			Year ended						to
	(Unaudited)			7/31/16			7/31/15			7/31/14

	$	8.480		$	8.220		$	8.840		$	8.500


		0.185			0.359			0.371			0.340
		(0.085	)		0.230			(0.594	)		0.333

		0.100			0.589			(0.223	)		0.673



		(0.180	)		(0.329	)		(0.303	)		(0.333	)
		—			—			(0.094	)		—

		(0.180	)		(0.329	)		(0.397	)		(0.333	)


	$	8.400		$	8.480		$	8.220		$	8.840


		1.19%			7.49%			(2.53%	)		8.08%


	$	20,167		$	19,930		$	18,532		$	19,020
		1.00%			1.01%			1.08%			1.07%
		1.00%			1.03%			1.14%			1.26%
		1.65%			1.79%			1.78%			2.24%
		4.35%			4.44%			4.46%			4.90%
		4.35%			4.42%			4.40%			4.71%
		3.70%			3.66%			3.76%			3.73%
		69%			232%			288%			152%


Notes to financial statements
Delaware Emerging Markets Debt Fund		January 31, 2017 (Unaudited)

Delaware Group^® Government Fund (Trust) is organized as a Delaware statutory trust and offers two series: Delaware Strategic Income Fund (formerly, Delaware Core Plus Bond Fund) and Delaware Emerging Markets Debt Fund. These financial statements and the related notes pertain to Delaware Emerging Markets Debt 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 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1.00% 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 charge of 1.00%, if redeemed during the first 12 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 primarily seek current income and secondarily capital appreciation.

1. Significant Accounting Policies

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

Security Valuation – Equity securities and exchange-traded funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs 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 or ETF does not trade, the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. Debt securities are valued based upon valuations provided by an independent pricing service or broker/counterparty 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. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. 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 and foreign cross 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 Trust’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.

Federal and Foreign 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 for all open federal income tax years (July 31, 2014–July 31, 2016), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of the Fund.

Class Accounting – Investment income, common expenses and 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. At Jan. 31, 2017, the fund had no open repurchase agreements.

Short Sales – The Fund may make short sales in an attempt to protect against declines in an individual security or the overall market, to manage duration, or for such other purposes consistent with the Fund’s investment objectives and strategies. Typically, short sales are transactions in which the Fund sells a security it does not own and, at the time a short sale is effected, the Fund incurs an obligation to replace the security borrowed at whatever its price may be at the time the Fund purchases it for delivery to the lender. The price at such time may be more or less than the price at which the security was sold by the Fund. When a short sale transaction is closed out by delivery of the security, any gain or loss on the transaction generally is taxable as short-term capital gain or loss. Until the security is replaced, the Fund is required to pay to the lender amounts equal to any dividends or interest that accrue during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale, and potentially additional margin, will be retained by the broker from whom the security is borrowed, to the extent necessary to meet margin requirements, until the short position is closed out.

Leverage – The Fund may employ leverage to attempt to take advantage of or increase the total return of investment opportunities the investment manager believes are attractive. The Fund may initiate leverage to the extent that the sum of aggregate borrowed funds and the notional value plus any gain or minus any loss of derivatives positions may not exceed an amount equal to 33 1/3% of the Fund’s total assets, measured at the time the leverage is employed. When the Fund initiates leverage, the leverage may include borrowing through a margin account maintained with a broker. For the six months ended Jan. 31, 2017, the Fund did not initiate leverage by borrowing through a margin account maintained with a broker.

Notes to financial statements

Delaware Emerging Markets Debt 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 Fund’s prospectus. The value of all assets and liabilities denominated in foreign currencies is translated daily into U.S. dollars at the exchange rate of such currencies against the U.S. dollar. 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 bifurcates 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. That portion of gains (losses) attributable to changes in foreign exchange rates is included on the “Statement of operations” under “Net realized gain (loss) on foreign currencies.” 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.

Use of Estimates – The Fund is an investment company, whose financial statements are prepared in conformity with U.S. GAAP. Therefore, the Fund follows the accounting and reporting guidelines for investment companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other – Expenses directly attributable to the Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated among 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 debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. The Fund declares and pays dividends from net investment income monthly and pays distributions from net realized gain on investments, if any, annually. The Fund may distribute 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 may be used to offset custody fees. There were no such earnings credits for the six months ended Jan. 31, 2017.

The Fund may receive earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1.00, the expense paid under this arrangement is included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expense offset shown under “Less expense paid indirectly.” For the six months ended Jan. 31, 2017, the Fund earned less than $1 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 0.75% on the first $500 million of average daily net assets of the Fund, 0.70% on the next $500 million, 0.65% on the next $1.5 billion, and 0.60% on average daily net assets in excess of $2.5 billion.

DMC has contractually agreed to waive all or a portion, if any, of its management fee and/or pay/reimburse the Fund to the extent necessary to limit annual operating expenses (excluding any 12b-1 fees, taxes, interest, short sale and dividend interest expenses, acquired fund fees and 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), to 1.00% of average daily net assets of the Fund from Aug. 1, 2016 through Jan. 31, 2017.* For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by the Fund’s Board and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Fund and may be terminated by agreement of DMC and the Fund.

Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Fund. For these services, DIFSC’s fees are calculated 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 DIFSC under the service agreement described above are allocated among all funds in the Delaware Investments Family of Funds on a relative NAV basis. For the six months ended Jan. 31, 2017, the Fund was charged $474 for these services. This amount is included on the “Statement of operations” under “Accounting and administration expenses.”

DIFSC is also the transfer agent and dividend disbursing agent of the Fund. For these services, DIFSC’s fees are calculated based on the aggregate daily net assets of the retail funds within the Delaware Investments Family of Funds at the following annual rate: 0.025% of the first $20 billion; 0.020% of the next $5 billion; 0.015% of the next $5 billion; and 0.013% of average daily net assets in excess of $30 billion. The fees payable to DIFSC under the service agreement described above are allocated among all retail funds in the Delaware Investments Family of Funds on a relative net asset value basis. This amount is included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended Jan. 31, 2017, the Fund was charged $2,035 for these services. Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to the Fund. Sub-transfer agency fees are paid by the Fund and are also included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.”

Pursuant to a distribution agreement and distribution plan, the Fund may pay DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee of 0.25%, 1.00%, and 0.50% of the average daily net assets of the Class A, Class C, and Class R shares, respectively. Institutional Class shares pay no distribution and service expenses. Effective July 22, 2014, DDLP agreed to voluntarily suspend the

Notes to financial statements

Delaware Emerging Markets Debt Fund

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

distribution and service fees for Class A, Class C, and Class R shares. The suspension of the distribution and service fees will remain in effect while the Fund is not broadly distributed.

As provided in the investment management agreement, the Fund bears a portion of the cost of resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to the Fund. For the six months ended Jan. 31, 2017, the Fund was charged $198 for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees. This amount is included on the “Statement of operations” under “Legal fees.”

For the six months ended Jan. 31, 2017, DDLP earned no commissions on sales of the Fund’s Class A shares. For the six months ended Jan. 31, 2017, DDLP received no gross CDSC commissions on redemption of the Fund’s Class A and Class C shares.

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

* The aggregate contractual waiver period covering this report is from Nov. 27, 2015, through Nov. 28, 2017.

3. Investments

For the six months ended Jan. 31, 2017, the Fund made purchases and sales of investment securities other than short-term investments as follows:


Purchases	$	13,892,238
Sales		12,922,964

At Jan. 31, 2017, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal six months end. At Jan. 31, 2017, the cost of investments and unrealized appreciation (depreciation) were as follows:


Cost of investments	$	19,807,989

Aggregate unrealized appreciation of investments	$	402,792
Aggregate unrealized depreciation of investments		(274,109	)

Net unrealized appreciation of investments	$	128,683

Under the Regulated Investment Company Modernization Act of 2010 (Act), net capital losses recognized for the tax years beginning after Dec. 22, 2010 may be carried forward indefinitely, and their tax character is retained as short-term or long-term losses.

Losses incurred that will be carried forward under the Act are as follows:


		Loss carryforward character
		Short-term		Long-term
		$173,777		$498,264

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 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. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded 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. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

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

Level 3 investments are valued using significant unobservable inputs. 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.

Notes to financial statements

Delaware Emerging Markets Debt Fund

3. Investments (continued)

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of Jan. 31, 2017:


Securities	Level 2			Level 3		Total
Corporate Debt	$	13,377,298		$	—	$	13,377,298
Foreign Debt		5,514,121			—		5,514,121
Loan Agreement		—			382,659		382,659
Short-Term Investments		659,732			—		659,732
Options Purchased		2,862			—		2,862

Total Value of Securities	$	19,554,013		$	382,659	$	19,936,672

Foreign Currency Exchange Contracts	$	455		$	—	$	455
Swap Contracts	$	(2,794	)	$	—	$	(2,794	)

During the six months ended Jan. 31, 2017, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a significant impact to the Fund. The Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

The Fund’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in significantly lower or higher value of such Level 3 investments. The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:


	Loan Agreement
Balance as of 7/31/16		$	418,359
Net change in unrealized appreciation (depreciation)			(3,825	)
Sales			(31,875	)

Balance as of 1/31/17		$	382,659

Net change in unrealized appreciation (depreciation) from investments still held at the end of the period		$	(3,825	)

4. Capital Shares

Transactions in capital shares were as follows:


	Six months
	ended		Year ended
	1/31/17		7/31/16
Shares issued upon reinvestment of dividends and distributions:
Class A		5		11
Class C		6		11
Class R		6		11
Institutional Class		50,663		94,559

Net increase		50,680		94,592

5. Line of Credit

The Fund, along with certain other funds in the Delaware Investments^® Family of Funds (Participants), was a participant in a $155,000,000 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 of 0.10%, which was allocated across the Participants on the basis of relative net assets 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. Each Participant is individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the agreement expired on Nov. 7, 2016.

On Nov. 7, 2016, the Fund, along with the other Participants, entered into an amendment to the agreement for a $155,000,000 revolving line of credit. The line of credit is to be used as described above and operates in substantially the same manner as the original agreement, with the exception of the annual commitment fee. Under the amendment to the agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants on the basis of relative net assets of each Participant’s allocation of the entire facility. The line of credit available under the agreement expires on Nov. 6, 2017.

The Fund had no amounts outstanding as of Jan. 31, 2017 or at any time during the period then ended.

6. 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 and foreign cross 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. In addition, the Fund may enter into these contracts to facilitate or expedite the settlement of portfolio transactions. 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 and foreign cross 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 and foreign cross 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

Notes to financial statements

Delaware Emerging Markets Debt Fund

6. Derivatives (continued)

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.

During the six months ended Jan. 31, 2017, the Fund used foreign currency exchange contracts and cross currency exchange contracts to hedge the U.S. dollar value of securities it already owned that were denominated in foreign currencies and to facilitate or expedite the settlement of portfolio transactions.

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. The Fund may use futures contracts in the normal course of pursuing its investment objective. The Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in fair value caused by changes in interest rates or market conditions. Upon entering into a futures contract, the Fund deposits cash or pledges U.S. government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is reduced counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. No futures contracts were outstanding at Jan. 31, 2017.

During the six months ended Jan. 31, 2017, the Fund used futures contracts to hedge the Fund’s existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions.

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 Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The 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, the 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. No options written were outstanding at Jan. 31, 2017.

There were no transactions in options written during the six months ended Jan. 31, 2017.

During the six months ended Jan. 31, 2017, the Fund used options contracts to manage the Fund’s exposure to changes in foreign currencies.

Swap Contracts – The Fund may enter into CDS contracts in the normal course of pursuing its investment objective. The Fund may enter into CDS contracts in order to hedge against credit events, to enhance total return, or to gain exposure to certain securities or markets. The Fund will not be permitted to enter into any swap transactions unless, at the time of entering into such transactions, the unsecured long-term debt of the actual counterparty, combined with any credit enhancements, is rated at least BBB- by Standard & Poor’s Financial Services LLC (S&P) or at least Baa3 by Moody’s Investors Service, Inc. (Moody’s) or is determined to be of equivalent credit quality by DMC.

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 Jan. 31, 2017, the Fund entered into CDS contracts as a purchaser 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 daily as unrealized appreciation or depreciation. 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. For the six months ended Jan. 31, 2017, the Fund did not enter into any CDS contracts as a seller of protection. Initial margin and variation margin are posted to central counterparties for CDS basket trades, as determined by the applicable central counterparty.

Notes to financial statements

Delaware Emerging Markets Debt Fund

6. Derivatives (continued)

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 (1) for bilateral swap contracts, 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 or (2) for cleared swaps, trading these instruments through a central counterparty.

During the six months ended Jan. 31, 2017, the Fund used CDS contracts to hedge against credit events.

Swaps Generally. The value of open swaps may differ from that which would be realized in the event the Fund terminated its position in the contract on a given day. 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 “Schedule of investments.”

Fair value of derivative instruments as of Jan. 31, 2017 was as follows:


	Asset Derivatives Fair Value
Statement of Assets and Liabilities Location	Currency Contracts			Credit Contracts			Total
Unrealized appreciation on foreign currency exchange contracts		$	946		$	—		$	946
Upfront payments paid on credit swap contracts			—			37,063			37,063

Total		$	946		$	37,063		$	38,009



	Liability Derivatives Fair Value
Statement of Assets and Liabilities Location	Currency Contracts			Credit Contracts			Total
Unrealized depreciation on foreign currency exchange contracts		$	491		$	—		$	491
Unrealized depreciation on credit default swap contracts			—			2,794			2,794

Total		$	491		$	2,794		$	3,285

The effect of derivative instruments on the “Statement of operations” for the six months ended Jan. 31, 2017 was as follows:


	Net Realized Gain (Loss) on:
	Foreign Currency Exchange Contracts			Futures Contracts				Swap Contracts				Total
Currency contracts		$	18,472		$	—			$	—			$	18,472
Interest rate contracts			—			20,075				—				20,075
Credit contracts			—			—				(1,004	)			(1,004	)

Total		$	18,472		$	20,075			$	(1,004	)		$	37,543


	Net Change in Unrealized Appreciation (Depreciation) of:
	Foreign Currency Exchange Contracts			Options Purchased				Swap Contracts				Total
Currency contracts		$	1,994		$	(4,763	)		$	—			$	(2,769	)
Credit contracts			—			—				(3,475	)			(3,475	)

Total		$	1,994		$	(4,763	)		$	(3,475	)		$	(6,244	)

Derivatives Generally. The table below summarizes the average balance of derivative holdings by the Fund during the six months ended Jan. 31, 2017.


	Long Derivative Volume		Short Derivative Volume
Foreign currency exchange contracts (average cost)		$296,643		$293,144
Futures contracts (average notional value)		—		486,877
Options contracts (average notional value)		391		—
CDS contracts (average notional value)*		134,646		—

*Long represents buying protection and short represents selling protection.

7. Offsetting

In December 2011, the Financial Accounting Standards Board (FASB) issued guidance that expanded disclosure requirements on the offsetting of certain assets and liabilities. The disclosures are required for investments and derivative financial instruments subject to master netting or similar agreements which are eligible for offset in the “Statement of assets and liabilities” and require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarified which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting is limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing.

Notes to financial statements

Delaware Emerging Markets Debt Fund

7. Offsetting (continued)

counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs over-the-counter (OTC) derivatives and foreign exchange contracts and typically contains, among other things, collateral posting items and provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out), including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the “Statement of assets and liabilities.”

At Jan. 31, 2017, the Fund had the following assets and liabilities subject to offsetting provisions:

Offsetting of Financial Assets and Liabilities and Derivatives Assets and Liabilities


	Gross Value of			Gross Value of
Counterparty	Derivative Asset			Derivative Liability				Net Position
BNP Paribas		$	839			—			$	839
Goldman Sachs Capital			45			—				45
HSBC			—			(2,794	)			(2,794	)
Toronto Dominion Bank			62			—				62
Union Bank of Switzerland			—			(491	)			(491	)

Total		$	946		$	(3,285	)		$	(2,339	)


Counterparty	Net Position				Fair Value of Non-Cash Collateral Received			Cash Collateral Received			Fair Value of Non-Cash Collateral Pledged			Cash Collateral Pledged			Net Exposure^(a)
BNP Paribas		$	839			$	—		$	—		$	—		$	—		$	839
Goldman Sachs Capital			45				—			—			—			—			45
HSBC			(2,794	)			—			—			—			—			(2,794	)
Toronto Dominion Bank			62				—			—			—			—			62
Union Bank of Switzerland			(491	)			—			—			—			—			(491	)

Total		$	(2,339	)		$	—		$	—		$	—		$	—		$	(2,339	)

^(a)Net exposure represents the receivable (payable) that would be due from (to) the counterparty in the event of default.

8. Securities Lending

percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to U.S. securities and foreign securities that are denominated and payable in U.S. dollars; and (2) 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 on any particular day may be more or less than the value of the security on loan.

Cash collateral received by each Fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a Fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by U.S. Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities or establishments; obligations of supranational organizations, commercial paper, notes, bonds and other debt obligations; certificates of deposits and other bank obligations; and asset-backed securities.

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 Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of a Fund’s cash collateral account may be less than the amount the Fund would be required to return to the borrowers of the securities and the Fund would be required to make up for this shortfall.

During the six months ended Jan. 31, 2017, the Fund had no securities out on loan.

Notes to financial statements

Delaware Emerging Markets Debt Fund

9. Credit and Market Risk

Some countries in which the Fund 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 Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund.

The Fund invests a portion of its assets in high yield, fixed income securities, which are securities rated lower than BBB- by S&P and Baa3 by Moody’s 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 in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of the security.

The Fund invests in bank loans and other securities that may subject it to direct indebtedness risk, the risk that the Fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower. Loans that are fully secured offer the Fund more protection than unsecured loans in the event of nonpayment of scheduled interest or principal, although there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated. Some loans or claims may be in default at the time of purchase. Certain of the loans and the other direct indebtedness acquired by the Fund may involve revolving credit facilities or other standby financing commitments that obligate the Fund to pay additional cash on a certain date or on demand. These commitments may require the Fund to increase its investment in a company at a time when the Fund might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that the Fund is committed to advance additional funds, it will at all times hold and maintain cash or other high grade debt obligations in an amount sufficient to meet such commitments. As the Fund may be required to rely upon another lending institution to collect and pass on to the Fund amounts payable with respect to the loan and to enforce the Fund’s rights under the loan and other direct indebtedness, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Fund from receiving such amounts. The highly leveraged nature of many loans may make them especially vulnerable to adverse changes in

economic or market conditions. Investments in such loans and other direct indebtedness may involve additional risk to the Fund.

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 promulgated under 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 securities have been identified on the “Schedule of investments.”

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. Recent Accounting Pronouncements

On Oct. 13, 2016, the Securities and Exchange Commission amended existing rules intended to modernize reporting and disclosure of information. These amounts relate to Regulation S-X which sets forth the form and content of financial statements. At this time, management is evaluating the implications of adopting these amendments and their impact on the financial statements and accompanying notes.

12. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to Jan. 31, 2017 that would require recognition or disclosure in the Fund’s financial statements.

Other Fund information (Unaudited)

Delaware Emerging Markets Debt Fund

Board consideration of Delaware Emerging Markets Debt Fund investment advisory agreement

At a meeting held on Aug. 16–18, 2016 (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 Delaware Emerging Markets Debt Fund (the “Fund”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies, and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Management Agreement with Delaware Management Company (“DMC”) 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 investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, reports were provided to the Trustees in May 2016 and included reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared the Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; comparative client fee information; and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’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 DMC 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 recognized DMC’s receipt of several industry distinctions during the past several years. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to Fund matters. The Board also 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 DMC.

Investment performance. The Board placed significant emphasis on the investment performance of the Fund in view of the importance of investment performance 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 Broadridge reports furnished for the Annual Meeting. The Broadridge 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 Broadridge (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 1-, 3-, 5-, and 10-year periods, to the extent applicable, ended Jan. 31, 2016. 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 Performance Universe for the Fund consisted of the Fund and all retail and institutional emerging markets hard currency debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-year and since inception periods was in the second quartile of its Performance Universe. 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 Broadridge (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 Broadridge total expenses, for comparative consistency, were shown by Broadridge for Class A shares and comparative total expenses including 12b-1 and non-12b-1 service fees. The Board’s objective is to limit the Fund’s total expense ratio to be competitive with that of the Expense Group.

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 Broadridge report.

Other Fund information (Unaudited)

Delaware Emerging Markets Debt Fund

Board consideration of Delaware Emerging Markets Debt Fund investment advisory agreement (continued)

determining profitability. Management stated that the level of profits of DMC, to a certain extent, reflects recent operational cost savings and efficiencies initiated by DMC. The Board considered DMC’s 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 DMC 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 DMC.

Economies of scale. The Trustees considered whether economies of scale are realized by DMC 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, and which applies to most funds in the Delaware Investments Family of Funds complex. 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 in the absence of breakpoints, when the asset levels specified in the breakpoints are exceeded. The Board noted that, in order to remain consistent with the Fund’s peers, the fee under the Fund’s Management Contract did not fall within the standardized fee pricing structure. Although, as of May 31, 2016, the Fund had not reached a size at which it can take advantage of any breakpoints in the applicable fee schedule, the Board recognized that the fee was structured so that if the Fund grows, economies of scale may be shared.

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About the organization

Board of trustees

Shawn K. Lytle

President and

Chief Executive Officer

Delaware Investments^®

Family of Funds

Philadelphia, PA

Thomas L. Bennett

Chairman of the Board

Delaware Investments

Family of Funds

Private Investor

Rosemont, PA

Ann D. Borowiec

Former Chief Executive

Officer

Private Wealth Management

J.P. Morgan Chase & Co.

New York, NY

Joseph W. Chow

Former Executive Vice

President

State Street Corporation

Boston, MA

John A. Fry

President

Drexel University

Philadelphia, PA

Lucinda S. Landreth

Former Chief Investment

Officer

Assurant, Inc.

New York, NY

Frances A.

Sevilla-Sacasa

Former Chief Executive

Officer

Banco Itaú

International

Miami, FL

Thomas K. Whitford

Former Vice Chairman

PNC Financial Services Group

Pittsburgh, PA

Janet L. Yeomans

Former Vice President and

Treasurer

3M Company

St. Paul, MN

Affiliated officers

David F. Connor

Senior Vice President,

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

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 Emerging Markets Debt 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 delawareinvestments.com/literature.

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 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 Schedules of Investments included in the Fund’s most recent Form N-Q are available without charge on the Fund’s website at delawareinvestments.com/literature. The Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC- 0330.

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

LOGO

Semiannual report

Fixed income mutual fund

Delaware Strategic Income Fund

(formerly, Delaware Core Plus Bond Fund)

January 31, 2017

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

You can obtain shareholder reports and prospectuses online instead of in the mail.

Visit 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 Strategic Income Fund at delawareinvestments.com/literature.

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Table of contents


Disclosure of Fund expenses			1
Security type / sector allocation			3
Schedule of investments			4
Statement of assets and liabilities			34
Statement of operations			36
Statements of changes in net assets			38
Financial highlights			40
Notes to financial statements			48
Other Fund information			67
About the organization			70

Unless otherwise noted, views expressed herein are current as of Jan. 31, 2017, and subject to change for events occurring after such date.

The Fund is not FDIC insured and is not guaranteed. It is possible to lose the principal amount invested.

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

Disclosure of Fund expenses

For the six-month period from August 1, 2016 to January 31, 2017 (Unaudited)

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 Aug. 1, 2016 to Jan. 31, 2017.

Actual expenses

Hypothetical example for comparison purposes

Disclosure of Fund expenses

For the six-month period from August 1, 2016 to January 31, 2017 (Unaudited)

Delaware Strategic Income Fund

Expense analysis of an investment of $1,000


	Beginning Account Value 8/1/16	Ending Account Value 1/31/17	Annualized Expense Ratio	Expenses Paid During Period 8/1/16 to 1/31/17*
Actual Fund return^†
Class A	$1,000.00	$975.40	0.90%	$4.48
Class C	1,000.00	971.80	1.65%	8.20
Class R	1,000.00	974.30	1.15%	5.72
Institutional Class	1,000.00	976.70	0.65%	3.24
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.67	0.90%	$4.58
Class C	1,000.00	1,016.89	1.65%	8.39
Class R	1,000.00	1,019.41	1.15%	5.85
Institutional Class	1,000.00	1,021.93	0.65%	3.31

*	“Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

^†	Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns.


Security type / sector allocation
Delaware Strategic Income Fund		As of January 31, 2017 (Unaudited)

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.


Security type / sector	Percentage of net assets
Agency Collateralized Mortgage Obligations		6.11	%
Agency Commercial Mortgage-Backed Securities		1.99	%
Agency Mortgage-Backed Securities		9.57	%
Collateralized Debt Obligations		2.62	%
Convertible Bonds		0.18	%
Corporate Bonds		54.29	%
Banking		12.59	%
Basic Industry		3.60	%
Brokerage		0.44	%
Capital Goods		2.29	%
Communications.		5.82	%
Consumer Cyclical		3.77	%
Consumer Non-Cyclical		5.55	%
Electric		6.46	%
Energy		6.02	%
Finance Companies		1.72	%
Insurance		1.27	%
Natural Gas		0.28	%
REITs		1.01	%
Technology		2.06	%
Transportation		1.41	%
Municipal Bonds		0.92	%
Non-Agency Asset-Backed Securities		4.39	%
Non-Agency Collateralized Mortgage Obligations		1.98	%
Non-Agency Commercial Mortgage-Backed Securities		5.57	%
Regional Bonds		0.28	%
Loan Agreements		8.99	%
Sovereign Bonds		1.09	%
Supranational Bank		0.11	%
U.S. Treasury Obligations		1.75	%
Convertible Preferred Stock		0.02	%
Preferred Stock		1.12	%
Short-Term Investments		3.41	%
Total Value of Securities		104.39	%
Liabilities Net of Receivables and Other Assets		(4.39	%)
Total Net Assets		100.00	%


Schedule of investments
Delaware Strategic Income Fund		January 31, 2017 (Unaudited)


	Principal amount°		Value (U.S. $)
Agency Collateralized Mortgage Obligations – 6.11%
Fannie Mae Grantor Trust
Series 2002-T1 A2 7.00% 11/25/31		35,973	$	42,148
Fannie Mae Interest Strip
Series 35 2 12.00% 7/25/18		3,005		3,182
Fannie Mae REMIC Trust
Series 2002-W1 2A 6.157% 2/25/42 ●		43,779		49,690
Fannie Mae REMICs
Series 1988-15 A 9.00% 6/25/18		49		51
Series 1996-46 ZA 7.50% 11/25/26		32,100		36,565
Series 2002-83 GH 5.00% 12/25/17		17,363		17,540
Series 2005-70 PA 5.50% 8/25/35		8,317		9,282
Series 2008-15 SB 5.829% 8/25/36 S●		22,886		4,377
Series 2010-129 SM 5.229% 11/25/40 S●		147,552		24,725
Series 2011-80 CB 4.00% 8/25/26		1,953,713		2,077,161
Series 2012-122 SD 5.329% 11/25/42 S●		275,022		57,049
Series 2013-7 EI 3.00% 10/25/40 S		116,766		14,624
Series 2013-26 ID 3.00% 4/25/33 S		203,588		29,103
Series 2013-38 AI 3.00% 4/25/33 S		191,891		26,236
Series 2013-43 IX 4.00% 5/25/43 S		590,558		138,920
Series 2013-44 DI 3.00% 5/25/33 S		609,152		97,326
Series 2013-55 AI 3.00% 6/25/33 S		246,294		35,980
Series 2014-68 BS 5.379% 11/25/44 S●		207,794		42,232
Series 2014-90 SA 5.379% 1/25/45 S●		571,881		115,017
Series 2015-27 SA 5.679% 5/25/45 S●		76,575		16,471
Series 2015-44 Z 3.00% 9/25/43		200,280		191,749
Series 2015-89 AZ 3.50% 12/25/45		19,791		19,120
Series 2015-95 SH 5.229% 1/25/46 S●		193,857		45,499
Series 2016-50 IB 3.00% 2/25/46 S		97,642		15,016
Series 2016-55 SK 5.229% 8/25/46 S●		158,419		39,036
Series 2016-62 SA 5.229% 9/25/46 S●		307,556		77,702
Series 2016-74 GS 5.229% 10/25/46 S●		98,035		24,303
Series 2016-99 DI 3.50% 1/25/46 S		99,658		15,645
Freddie Mac REMICs
Series 3656 PM 5.00% 4/15/40		124,384		136,103
Series 4109 AI 3.00% 7/15/31 S		386,575		45,354
Series 4120 IK 3.00% 10/15/32 S		307,180		44,399
Series 4146 IA 3.50% 12/15/32 S		161,607		24,863
Series 4159 KS 5.383% 1/15/43 S●		144,422		32,423
Series 4181 DI 2.50% 3/15/33 S		101,577		12,740
Series 4184 GS 5.353% 3/15/43 S●		164,320		36,571
Series 4185 LI 3.00% 3/15/33 S		150,960		21,402
Series 4191 CI 3.00% 4/15/33 S		67,288		9,535
Series 4435 DY 3.00% 2/15/35		162,000		160,191


	Principal amount°		Value (U.S. $)
Agency Collateralized Mortgage Obligations (continued)
Freddie Mac REMICs
Series 4494 SA 5.413% 7/15/45 S●		80,990	$	17,098
Series 4543 HI 3.00% 4/15/44 S		86,668		12,871
Series 4581 LI 3.00% 5/15/36 S		88,146		12,442
Series 4592 WT 5.50% 6/15/46		340,013		377,409
Series 4594 SG 5.233% 6/15/46 S●		432,522		108,719
Series 4614 HB 2.50% 9/15/46		77,000		68,357
Series 4623 LZ 2.50% 10/15/46		65,407		55,407
Series 4623 MW 2.50% 10/15/46		75,000		69,758
Series 4625 BI 3.50% 6/15/46 S		278,783		55,094
Series 4631 GS 5.233% 11/15/46 S●		353,991		71,901
Series 4636 NZ 3.00% 12/15/46		84,210		74,047
Freddie Mac Strips
Series 267 S5 5.233% 8/15/42 S●		213,717		44,688
Series 299 S1 5.233% 1/15/43 S●		160,740		32,321
Series 326 S2 5.183% 3/15/44 S●		109,470		22,045
Freddie Mac Structured Agency Credit Risk Debt Notes
Series 2017-DNA1 M2 4.029% 7/25/29 ●		500,000		500,000
Freddie Mac Structured Pass Through Certificates
Series T-42 A5 7.50% 2/25/42 ◆		18,599		21,795
GNMA
Series 2010-42 PC 5.00% 7/20/39		545,000		597,385
Series 2010-113 KE 4.50% 9/20/40		245,000		265,387
Series 2012-136 MX 2.00% 11/20/42		30,000		26,964
Series 2013-113 AZ 3.00% 8/20/43		206,050		195,090
Series 2013-113 LY 3.00% 5/20/43		22,000		21,561
Series 2015-64 GZ 2.00% 5/20/45		80,642		65,148
Series 2015-74 CI 3.00% 10/16/39 S		159,794		20,105
Series 2015-133 AL 3.00% 5/20/45		214,000		204,938
Series 2016-108 SK 5.273% 8/20/46 S●		216,147		52,514
Series 2016-111 PB 2.50% 8/20/46		74,000		66,129
Series 2016-116 GI 3.50% 11/20/44 S		270,498		46,266
Series 2016-120 AS 5.323% 9/20/46 S●		232,637		58,915
Series 2016-121 JS 5.323% 9/20/46 S●		217,108		52,705
Series 2016-134 MW 3.00% 10/20/46		12,000		11,874
Series 2016-156 PB 2.00% 11/20/46		46,000		36,843
Series 2016-160 GI 3.50% 11/20/46 S		183,113		43,890

Total Agency Collateralized Mortgage Obligations (cost $7,362,143)				7,098,996


Agency Commercial Mortgage-Backed Securities – 1.99%
Freddie Mac Multifamily Structured Pass Through Certificates
Series K013 A2 3.974% 1/25/21 ◆●		100,000		106,880

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)
Agency Commercial Mortgage-Backed Securities (continued)
Freddie Mac Multifamily Structured Pass Through Certificates
Series K031 A2 3.30% 4/25/23 ◆●		320,000	$	334,824
Series K055 A2 2.673% 3/25/26 ◆		245,000		240,836
Series K056 A2 2.525% 5/25/26 ◆		85,000		82,421
Series K057 A2 2.57% 7/25/26 ◆		70,000		68,019
Series K719 A1 2.53% 12/25/21 ◆		57,860		58,503
Series K724 A2 3.062% 11/25/23 ◆		115,000		118,353
Series KS03 A4 3.161% 5/25/25 ◆●		110,000		111,155
FREMF Mortgage Trust
Series 2010-K7 B 144A 5.449% 4/25/20 #●		95,000		102,921
Series 2011-K10 B 144A 4.631% 11/25/49 #●		110,000		116,799
Series 2011-K12 B 144A 4.344% 1/25/46 #●		80,000		84,709
Series 2011-K14 B 144A 5.167% 2/25/47 #●		50,000		54,577
Series 2011-K15 B 144A 4.948% 8/25/44 #●		75,000		81,095
Series 2011-K704 B 144A 4.536% 10/25/30 #●		80,000		82,706
Series 2012-K18 B 144A 4.255% 1/25/45 #●		55,000		58,125
Series 2012-K22 B 144A 3.686% 8/25/45 #●		190,000		194,929
Series 2012-K708 B 144A 3.751% 2/25/45 #●		110,000		112,851
Series 2013-K33 B 144A 3.502% 8/25/46 #●		65,000		65,549
Series 2013-K712 B 144A 3.365% 5/25/45 #●		60,000		61,246
Series 2013-K713 B 144A 3.165% 4/25/46 #●		35,000		35,519
Series 2013-K713 C 144A 3.165% 4/25/46 #●		140,000		138,881

Total Agency Commercial Mortgage-Backed Securities (cost $2,363,094)				2,310,898


Agency Mortgage-Backed Securities – 9.57%
Fannie Mae
3.00% 1/1/47		545,000		535,189
10.50% 6/1/30		9,871		10,045
Fannie Mae ARM
2.531% 12/1/46 ●		187,982		188,993
2.965% 4/1/46 ●		18,154		18,533
Fannie Mae S.F. 30 yr
4.50% 11/1/39		58,902		63,985
4.50% 1/1/40		562,547		609,304
4.50% 6/1/40		62,277		67,542
4.50% 8/1/40		18,351		19,800
4.50% 7/1/41		158,935		172,105
4.50% 8/1/41		164,211		178,220
4.50% 1/1/42		35,966		38,929
4.50% 10/1/44		55,718		60,196
4.50% 3/1/46		23,241		25,142
4.50% 7/1/46		93,027		100,474


	Principal amount°		Value (U.S. $)
Agency Mortgage-Backed Securities (continued)
Fannie Mae S.F. 30 yr
5.50% 12/1/32		1,956	$	2,190
5.50% 2/1/33		24,678		27,566
5.50% 6/1/33		15,456		17,288
5.50% 4/1/34		11,066		12,391
5.50% 5/1/34		108,168		121,000
5.50% 7/1/34		3,544		3,970
5.50% 9/1/34		57,074		63,837
5.50% 11/1/34		10,546		11,797
5.50% 12/1/34		234,519		262,462
5.50% 3/1/35		21,688		24,277
5.50% 4/1/35		64,168		71,769
5.50% 5/1/35		58,329		65,257
5.50% 6/1/35		7,337		8,207
5.50% 12/1/35		9,790		10,910
5.50% 1/1/36		48,243		54,004
5.50% 5/1/36		4,941		5,514
5.50% 7/1/36		2,985		3,343
5.50% 9/1/36		59,232		66,344
5.50% 11/1/36		8,609		9,606
5.50% 1/1/37		34,536		38,453
5.50% 2/1/37		24,775		27,605
5.50% 4/1/37		71,470		79,693
5.50% 8/1/37		51,415		57,491
5.50% 9/1/37		47,506		52,917
5.50% 1/1/38		539,599		603,577
5.50% 2/1/38		85,884		95,984
5.50% 6/1/38		84,782		94,464
5.50% 7/1/38		17,094		19,085
5.50% 9/1/38		76,384		85,405
5.50% 12/1/38		334,623		374,726
5.50% 1/1/39		96,264		107,736
5.50% 2/1/39		129,438		144,714
5.50% 6/1/39		48,519		54,238
5.50% 12/1/39		92,401		103,171
5.50% 3/1/40		113,778		127,271
5.50% 7/1/40		72,146		80,600
5.50% 3/1/41		220,604		246,944
5.50% 6/1/41		127,397		142,681
5.50% 9/1/41		534,740		596,970
6.00% 6/1/36		3,509		3,966
6.00% 9/1/36		20,088		23,264
6.00% 12/1/36		3,643		4,155

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)
Agency Mortgage-Backed Securities (continued)
Fannie Mae S.F. 30 yr
6.00% 6/1/37		1,974	$	2,258
6.00% 7/1/37		135,973		155,429
6.00% 8/1/37		21,103		23,944
6.00% 5/1/38		19,590		22,148
6.00% 9/1/38		147,058		166,250
6.00% 9/1/39		102,208		115,394
6.00% 10/1/39		168,081		193,184
6.00% 3/1/40		16,105		18,214
6.00% 4/1/40		27,008		30,535
6.00% 11/1/40		5,648		6,493
6.00% 5/1/41		40,936		46,296
6.00% 7/1/41		57,926		66,584
6.50% 5/1/40		34,897		39,469
10.00% 2/1/25		16,969		18,130
Fannie Mae S.F. 30 yr TBA
3.00% 3/1/47		746,000		736,607
Freddie Mac ARM
2.927% 10/1/45 ●		65,500		66,941
2.979% 11/1/45 ●		50,515		51,607
3.111% 3/1/46 ●		96,187		98,731
Freddie Mac S.F. 30 yr
4.50% 4/1/39		10,102		10,910
4.50% 5/1/40		386,739		419,524
4.50% 3/1/42		240,468		260,712
4.50% 7/1/42		99,987		107,975
4.50% 12/1/43		90,144		97,274
4.50% 8/1/44		150,498		163,061
5.50% 3/1/34		4,315		4,852
5.50% 12/1/34		4,014		4,512
5.50% 12/1/35		458,973		516,830
5.50% 6/1/36		2,471		2,761
5.50% 11/1/36		5,292		5,866
5.50% 9/1/37		5,319		5,897
5.50% 7/1/38		19,568		21,686
5.50% 6/1/39		19,594		21,718
5.50% 3/1/40		13,122		14,548
5.50% 8/1/40		47,214		52,350
5.50% 1/1/41		15,154		16,801
5.50% 6/1/41		316,887		353,025
6.00% 2/1/36		8,638		9,828
6.00% 9/1/37		13,941		15,760
6.00% 1/1/38		5,079		5,719


	Principal amount°		Value (U.S. $)
Agency Mortgage-Backed Securities (continued)
Freddie Mac S.F. 30 yr
6.00% 6/1/38		13,947	$	15,757
6.00% 8/1/38		84,612		96,760
6.00% 5/1/40		33,433		37,982
6.00% 7/1/40		73,594		83,448
GNMA I S.F. 30 yr
5.00% 3/15/40		312,563		342,898
5.50% 2/15/41		38,000		42,469
GNMA II S.F. 30 yr
5.50% 5/20/37		30,656		34,114
5.50% 4/20/40		27,970		30,589
6.00% 2/20/39		39,259		44,530
6.00% 10/20/39		65,000		72,661
6.00% 2/20/40		139,336		159,511
6.00% 4/20/46		41,989		46,904
6.50% 10/20/39		49,205		55,535

Total Agency Mortgage-Backed Securities (cost $11,206,475)				11,128,280


Collateralized Debt Obligations – 2.62%
Anchorage Capital CLO 6
Series 2015-6A A1 144A 2.563% 4/15/27 #●		250,000		249,696
Avery Point III CLO
Series 2013-3A A 144A 2.424% 1/18/25 #●		250,000		249,874
Benefit Street Partners CLO IV
Series 2014-IVA A1R 144A 2.515% 1/20/29 #●		500,000		499,747
BlueMountain CLO
Series 2015-2A A1 144A 2.454% 7/18/27 #●		250,000		250,429
Cedar Funding VI CLO
Series 2016-6A A1 144A 2.344% 10/20/28 #●		250,000		250,239
Cent CLO
Series 2014-21A A1B 144A 2.427% 7/27/26 #●		250,000		250,308
Magnetite IX
Series 2014-9A A1 144A 2.458% 7/25/26 #●		495,000		495,639
Neuberger Berman CLO XIX
Series 2015-19A A1 144A 2.443% 7/15/27 #●		250,000		249,874
Shackleton CLO
Series 2014-5A A 144A 2.381% 5/7/26 #●		250,000		250,077
Venture CDO
Series 2016-25A A1 144A 2.49% 4/20/29 #●		100,000		99,946
Venture XXIV CLO
Series 2016-24A A1D 144A 2.24% 10/20/28 #●		195,000		195,175

Total Collateralized Debt Obligations (cost $3,036,746)				3,041,004

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)
Convertible Bonds – 0.18%
Alaska Communications Systems Group 6.25% exercise price $10.28, maturity date 5/1/18		24,000	$	23,880
Blucora 4.25% exercise price $21.66, maturity date 4/1/19		5,000		4,991
Ciena 144A 3.75% exercise price $20.17, maturity date 10/15/18 #		14,000		18,909
General Cable 4.50% exercise price $31.67, maturity date 11/15/29 f		28,000		23,380
Hologic 2.00% exercise price $31.18, maturity date 3/1/42 f		19,000		26,006
Jefferies Group 3.875% exercise price $43.93, maturity date 11/1/29		32,000		32,360
Meritor 4.00% exercise price $26.73, maturity date 2/15/27 f		39,000		40,340
Nuance Communications 2.75% exercise price $32.30,maturity date 11/1/31		27,000		27,186
Vector Group 2.50% exercise price $15.22, maturity date 1/15/19 ●		8,000		12,034

Total Convertible Bonds (cost $189,860)				209,086


Corporate Bonds – 54.29%
Banking – 12.59%
Ally Financial 5.75% 11/20/25		285,000		291,820
Banco Nacional de Costa Rica 144A 5.875% 4/25/21 #		200,000		209,050
Bank of America
4.183% 11/25/27		95,000		94,460
4.443% 1/20/48 ●		40,000		40,011
4.45% 3/3/26		835,000		853,739
Bank of New York Mellon
2.15% 2/24/20		30,000		30,009
2.20% 8/16/23		135,000		129,103
3.442% 2/7/28 ●		370,000		370,000
4.625% 12/29/49 ●		195,000		185,796
Barclays
3.20% 8/10/21		235,000		233,863
4.337% 1/10/28		200,000		199,579
4.95% 1/10/47		200,000		200,184
Citigroup 3.887% 1/10/28 ●		145,000		145,133
Citizens Bank 2.55% 5/13/21		250,000		249,116
Citizens Financial Group 4.30% 12/3/25		115,000		116,955
Compass Bank 3.875% 4/10/25		250,000		239,771
Cooperatieve Rabobank 3.75% 7/21/26		250,000		243,869
Credit Suisse Group 144A 6.25% 12/29/49 #●		400,000		395,700
Credit Suisse Group Funding Guernsey 4.55% 4/17/26		615,000		632,465
Fifth Third Bancorp 2.875% 7/27/20		50,000		50,845


		Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Banking (continued)
Fifth Third Bank
2.25% 6/14/21			200,000	$	197,547
3.85% 3/15/26			200,000		201,194
Goldman Sachs Group
3.50% 11/16/26			180,000		175,694
3.85% 1/26/27			65,000		65,043
5.15% 5/22/45			250,000		259,599
HSBC Holdings 4.375% 11/23/26			200,000		201,449
JPMorgan Chase & Co.
3.625% 12/1/27			240,000		231,591
3.782% 2/1/28 ●			200,000		200,946
4.25% 10/1/27			540,000		551,733
KeyBank 3.40% 5/20/26			545,000		531,027
KeyCorp 5.00% 12/29/49 ●			260,000		247,975
Landwirtschaftliche Rentenbank 5.375% 4/23/24	NZD		38,000		30,072
Lloyds Banking Group
3.00% 1/11/22			200,000		199,491
3.75% 1/11/27			270,000		265,942
7.50% 4/30/49 ●			200,000		207,958
Morgan Stanley
2.625% 11/17/21			325,000		320,343
3.95% 4/23/27			90,000		88,141
4.375% 1/22/47			290,000		288,296
Nationwide Building Society 144A 4.00% 9/14/26 #			250,000		238,281
PNC Bank
2.30% 6/1/20			335,000		335,930
2.45% 11/5/20			250,000		251,210
PNC Financial Services Group 5.00% 12/29/49 ●			155,000		153,063
Popular 7.00% 7/1/19			295,000		309,750
Royal Bank of Scotland Group
3.875% 9/12/23			200,000		194,612
8.625% 12/29/49 ●			400,000		414,000
Santander UK Group Holdings 3.571% 1/10/23			200,000		200,497
SunTrust Bank 3.30% 5/15/26			200,000		193,472
SunTrust Banks 2.70% 1/27/22			35,000		34,875
Swedbank 144A 2.65% 3/10/21 #			200,000		200,568
Toronto-Dominion Bank
2.50% 12/14/20			100,000		100,436
3.625% 9/15/31 ●			155,000		151,263
UBS Group 6.875% 12/29/49 ●			310,000		309,523
UBS Group Funding Jersey
144A 2.65% 2/1/22 #			400,000		388,635

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Banking (continued)
UBS Group Funding Jersey
144A 4.125% 4/15/26 #		350,000	$	354,379
USB Capital IX 3.50% 10/29/49 ●		705,000		585,150
Wells Fargo & Co.
3.069% 1/24/23		50,000		49,969
4.75% 12/7/46		200,000		204,347
Wells Fargo Bank 2.15% 12/6/19		300,000		299,916
Wells Fargo Capital X 5.95% 12/15/36		50,000		52,937
Westpac Banking 4.322% 11/23/31 ●		125,000		124,581
Woori Bank 144A 4.75% 4/30/24 #		200,000		204,593
Zions Bancorporation 4.50% 6/13/23		105,000		107,705

				14,635,201

Basic Industry – 3.60%
BHP Billiton Finance USA 144A 6.25% 10/19/75 #●		400,000		440,600
Dow Chemical 8.55% 5/15/19		479,000		547,853
Eastman Chemical 4.65% 10/15/44		195,000		197,115
Equate Petrochemical 144A 3.00% 3/3/22 #		200,000		194,386
Freeport-McMoRan 4.55% 11/14/24		325,000		306,313
Georgia-Pacific 8.00% 1/15/24		195,000		247,657
Hudbay Minerals 144A 7.625% 1/15/25 #		135,000		145,125
International Paper
4.40% 8/15/47		210,000		201,921
5.15% 5/15/46		125,000		132,405
INVISTA Finance 144A 4.25% 10/15/19 #		120,000		121,217
NOVA Chemicals 144A 5.00% 5/1/25 #		60,000		60,300
OCP 144A 4.50% 10/22/25 #		200,000		192,365
Potash Corp. of Saskatchewan 4.00% 12/15/26		225,000		226,477
Steel Dynamics 5.50% 10/1/24		360,000		382,950
Suzano Austria 144A 5.75% 7/14/26 #		300,000		301,140
Vale Overseas 5.875% 6/10/21		130,000		139,425
Vedanta Resources 144A 6.375% 7/30/22 #		200,000		200,800
Westlake Chemical 144A 5.00% 8/15/46 #		75,000		75,435
WR Grace & Co.-Conn 144A 5.625% 10/1/24 #		68,000		71,910

				4,185,394

Brokerage – 0.44%
Affiliated Managers Group 3.50% 8/1/25		110,000		105,458
E*TRADE Financial 5.875% 12/29/49 ●		160,000		160,624
Jefferies Group
6.45% 6/8/27		60,000		66,500
6.50% 1/20/43		50,000		51,289
Lazard Group 3.75% 2/13/25		125,000		123,490

				507,361


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Capital Goods – 2.29%
Ardagh Packaging Finance 144A 6.00% 2/15/25 #		295,000	$	297,581
Ball 5.25% 7/1/25		280,000		295,134
CCL Industries 144A 3.25% 10/1/26 #		95,000		90,398
Cemex 144A 7.75% 4/16/26 #		200,000		223,340
Crown Americas 144A 4.25% 9/30/26 #		200,000		191,500
Fortune Brands Home & Security 3.00% 6/15/20		70,000		70,678
LafargeHolcim Finance U.S. 144A 3.50% 9/22/26 #		400,000		388,800
Lennox International 3.00% 11/15/23		100,000		97,693
Masco 3.50% 4/1/21		175,000		179,438
Parker-Hannifin 3.30% 11/21/24		10,000		10,171
Roper Technologies
2.80% 12/15/21		80,000		80,024
3.80% 12/15/26		65,000		64,967
St Marys Cement Canada 144A 5.75% 1/28/27 #		200,000		196,250
United Rentals North America 5.875% 9/15/26		340,000		354,875
United Technologies 3.75% 11/1/46		125,000		117,728

				2,658,577

Communications – 5.82%
21st Century Fox America 4.95% 10/15/45		180,000		182,532
American Tower
2.25% 1/15/22		15,000		14,377
4.00% 6/1/25		150,000		150,538
4.40% 2/15/26		75,000		77,156
American Tower Trust #1 144A 3.07% 3/15/23 #		210,000		209,189
AT&T
3.20% 3/1/22		5,000		4,996
4.35% 6/15/45		95,000		81,869
4.50% 3/9/48		385,000		337,405
5.25% 3/1/37		75,000		74,647
CC Holdings GS V 3.849% 4/15/23		100,000		102,360
Charter Communications Operating 4.908% 7/23/25		220,000		231,068
Cincinnati Bell 144A 7.00% 7/15/24 #		140,000		148,225
Columbus Cable Barbados 144A 7.375% 3/30/21 #		200,000		213,000
Comcast 3.00% 2/1/24		170,000		168,318
Crown Castle International 5.25% 1/15/23		150,000		163,507
Crown Castle Towers 144A 4.883% 8/15/20 #		505,000		538,463
CSC Holdings 144A 5.50% 4/15/27 #		200,000		203,250
Deutsche Telekom International Finance
144A 2.485% 9/19/23 #		295,000		282,179
144A 3.60% 1/19/27 #		215,000		212,842
DISH DBS 7.75% 7/1/26		255,000		285,521
Frontier Communications 10.50% 9/15/22		80,000		83,950

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Communications (continued)
GTP Acquisition Partners I 144A 2.35% 6/15/20 #		100,000	$	98,395
Midcontinent Communications 144A 6.875% 8/15/23 #		150,000		161,813
Millicom International Cellular 144A 6.00% 3/15/25 #		200,000		204,392
Nielsen Co. Luxembourg 144A 5.00% 2/1/25 #		295,000		293,525
SBA Tower Trust 144A 2.24% 4/16/18 #		160,000		160,317
Sirius XM Radio 144A 5.375% 4/15/25 #		290,000		296,887
Sprint Communications 144A 7.00% 3/1/20 #		230,000		250,413
Time Warner Cable 7.30% 7/1/38		370,000		454,322
Unitymedia 144A 6.125% 1/15/25 #		200,000		207,750
Verizon Communications
4.125% 8/15/46		120,000		103,756
4.522% 9/15/48		135,000		122,431
Viacom 3.45% 10/4/26		95,000		88,352
Wind Acquisition Finance 144A 7.375% 4/23/21 #		200,000		208,480
WPP Finance 2010 5.625% 11/15/43		45,000		48,621
Zayo Group 144A 5.75% 1/15/27 #		295,000		302,375

				6,767,221

Consumer Cyclical – 3.77%
Adient Global Holdings 144A 4.875% 8/15/26 #		200,000		196,876
Boyd Gaming 144A 6.375% 4/1/26 #		275,000		296,313
Daimler Finance North America 144A 3.45% 1/6/27 #		150,000		149,674
Ford Motor Credit 3.096% 5/4/23		200,000		193,936
General Motors Financial
3.45% 1/14/22		40,000		40,004
3.45% 4/10/22		155,000		154,901
3.70% 5/9/23		130,000		129,111
4.00% 10/6/26		165,000		160,183
5.25% 3/1/26		65,000		68,851
GLP Capital 5.375% 4/15/26		240,000		250,500
Goodyear Tire & Rubber 5.00% 5/31/26		325,000		328,250
Hyundai Capital America
144A 2.125% 10/2/17 #		130,000		130,356
144A 3.00% 3/18/21 #		70,000		70,161
JD.com 3.125% 4/29/21		200,000		198,096
Lennar 4.875% 12/15/23		160,000		163,600
Levi Strauss & Co. 5.00% 5/1/25		190,000		191,781
Marriott International
3.75% 3/15/25		140,000		140,981
4.50% 10/1/34		20,000		20,006
Mastercard 3.80% 11/21/46		30,000		29,149
MGM Growth Properties Operating Partnership 144A
4.50% 9/1/26 #		220,000		211,750


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Consumer Cyclical (continued)
Murphy Oil USA 6.00% 8/15/23		170,000	$	178,925
PulteGroup 5.00% 1/15/27		165,000		162,731
Target 3.625% 4/15/46		525,000		475,719
Walgreens Boots Alliance
3.10% 6/1/23		380,000		379,736
3.45% 6/1/26		65,000		63,492

				4,385,082

Consumer Non-Cyclical – 5.55%
ACCO Brands 144A 5.25% 12/15/24 #		440,000		443,894
Altria Group 3.875% 9/16/46		175,000		160,817
Anheuser-Busch InBev Finance 3.65% 2/1/26		755,000		761,375
Aramark Services 144A 4.75% 6/1/26 #		170,000		169,575
Becle 144A 3.75% 5/13/25 #		150,000		143,976
Biogen 5.20% 9/15/45		145,000		155,622
BRF 144A 4.35% 9/29/26 #		200,000		189,250
Celgene 3.25% 8/15/22		280,000		283,382
Gilead Sciences 4.15% 3/1/47		230,000		215,836
Gruma 144A 4.875% 12/1/24 #		200,000		207,690
HCA 5.375% 2/1/25		285,000		291,056
Kroger 4.45% 2/1/47		120,000		117,546
Molson Coors Brewing
3.00% 7/15/26		135,000		127,237
4.20% 7/15/46		115,000		106,610
Mylan 144A 3.95% 6/15/26 #		285,000		270,278
New York & Presbyterian Hospital 4.063% 8/1/56		130,000		122,727
Pernod Ricard
144A 3.25% 6/8/26 #		160,000		154,129
144A 4.45% 1/15/22 #		300,000		319,660
Pfizer 3.00% 12/15/26		160,000		157,348
Revlon Consumer Products 6.25% 8/1/24		140,000		145,250
Reynolds American 4.00% 6/12/22		160,000		167,330
Scotts Miracle-Gro 144A 5.25% 12/15/26 #		190,000		191,782
Shire Acquisitions Investments Ireland 2.40% 9/23/21		160,000		155,624
Sigma Alimentos 144A 4.125% 5/2/26 #		200,000		188,600
Sysco 3.30% 7/15/26		335,000		328,338
Tempur Sealy International 5.50% 6/15/26		330,000		325,875
Thermo Fisher Scientific 3.00% 4/15/23		560,000		553,097

				6,453,904

Electric – 6.46%
AES 5.50% 4/15/25		135,000		137,364
AES Gener 144A 5.00% 7/14/25 #		200,000		200,367
Ameren Illinois 9.75% 11/15/18		389,000		442,670

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Electric (continued)
American Transmission Systems 144A 5.25% 1/15/22 #		100,000	$	111,091
Black Hills 3.95% 1/15/26		40,000		40,933
Calpine
144A 5.25% 6/1/26 #		125,000		126,563
5.50% 2/1/24		65,000		63,700
Cleveland Electric Illuminating 5.50% 8/15/24		115,000		131,742
CMS Energy 6.25% 2/1/20		190,000		211,075
ComEd Financing III 6.35% 3/15/33		190,000		200,148
Commonwealth Edison 4.35% 11/15/45		130,000		136,696
Consumers Energy
3.25% 8/15/46		125,000		110,827
4.10% 11/15/45		35,000		35,666
Dominion Resources
2.85% 8/15/26		35,000		32,827
3.90% 10/1/25		245,000		250,772
DTE Energy
2.85% 10/1/26		180,000		167,931
3.30% 6/15/22		115,000		117,284
Duke Energy 4.80% 12/15/45		70,000		74,577
Duke Energy Carolinas 3.875% 3/15/46		50,000		48,937
Dynegy 7.625% 11/1/24		170,000		162,775
Emera 6.75% 6/15/76 ●		205,000		224,475
Emera U.S. Finance
3.55% 6/15/26		80,000		78,609
4.75% 6/15/46		220,000		224,473
Enel 144A 8.75% 9/24/73 #●		200,000		228,500
Enel Americas 4.00% 10/25/26		30,000		29,280
Enel Finance International 144A 6.00% 10/7/39 #		100,000		114,345
Entergy 4.00% 7/15/22		285,000		298,578
Entergy Louisiana 4.95% 1/15/45		55,000		56,548
Entergy Mississippi 2.85% 6/1/28		105,000		99,858
Exelon 3.95% 6/15/25		90,000		91,954
Fortis 144A 3.055% 10/4/26 #		280,000		261,421
Indiana Michigan Power 4.55% 3/15/46		65,000		68,406
IPALCO Enterprises 3.45% 7/15/20		125,000		128,125
Kansas City Power & Light 3.65% 8/15/25		255,000		257,273
LG&E & KU Energy 4.375% 10/1/21		380,000		404,062
Louisville Gas & Electric 4.375% 10/1/45		40,000		42,494
Massachusetts Electric 144A 4.004% 8/15/46 #		295,000		284,755
Metropolitan Edison 144A 4.00% 4/15/25 #		50,000		50,603
MidAmerican Energy 4.25% 5/1/46		170,000		176,692


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Electric (continued)
National Rural Utilities Cooperative Finance
2.70% 2/15/23		170,000	$	169,371
4.75% 4/30/43 ●		190,000		192,027
5.25% 4/20/46 ●		60,000		62,497
New York State Electric & Gas 144A 3.25% 12/1/26 #		145,000		144,106
NV Energy 6.25% 11/15/20		100,000		113,211
Pennsylvania Electric 5.20% 4/1/20		175,000		187,234
SCANA 4.125% 2/1/22		85,000		86,089
Southern
2.75% 6/15/20		180,000		182,322
3.25% 7/1/26		170,000		164,994
4.40% 7/1/46		135,000		134,145
Trans-Allegheny Interstate Line 144A 3.85% 6/1/25 #		70,000		71,472
Wisconsin Electric Power 4.30% 12/15/45		75,000		77,923

				7,509,787

Energy – 6.02%
AmeriGas Partners 5.50% 5/20/25		315,000		324,056
Anadarko Petroleum 6.60% 3/15/46		325,000		408,849
Antero Resources 144A 5.00% 3/1/25 #		290,000		284,925
BP Capital Markets
3.216% 11/28/23		235,000		236,116
3.561% 11/1/21		60,000		62,689
Cheniere Corpus Christi Holdings 144A 5.875% 3/31/25 #		155,000		164,494
CNOOC Finance 2015 Australia 2.625% 5/5/20		200,000		199,540
ConocoPhillips 4.95% 3/15/26		270,000		297,001
Dominion Gas Holdings 4.60% 12/15/44		90,000		90,740
Empresa Nacional del Petroleo 144A 4.75% 12/6/21 #		170,000		177,691
Enbridge
4.25% 12/1/26		70,000		72,171
6.00% 1/15/77 ●		115,000		116,725
Energy Transfer Partners
6.125% 12/15/45		195,000		213,376
9.70% 3/15/19		127,000		145,823
EnLink Midstream Partners 4.85% 7/15/26		85,000		87,591
Enterprise Products Operating 7.034% 1/15/68 ●		30,000		31,345
Kinder Morgan Energy Partners 5.80% 3/1/21		115,000		127,133
MPLX 4.875% 6/1/25		100,000		105,194
Murphy Oil 6.875% 8/15/24		325,000		349,375
Nabors Industries 144A 5.50% 1/15/23 #		276,000		289,800
Newfield Exploration 5.75% 1/30/22		395,000		422,650
Noble Energy 5.05% 11/15/44		90,000		92,327
Pertamina Persero 144A 4.875% 5/3/22 #		200,000		207,565

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Energy (continued)
Petrobras Global Finance
5.375% 1/27/21		25,000	$	25,250
7.375% 1/17/27		25,000		26,080
8.375% 5/23/21		50,000		55,740
Petroleos Mexicanos
144A 4.607% 3/11/22 #●		85,000		88,400
6.75% 9/21/47		55,000		52,041
Petronas Global Sukuk 144A 2.707% 3/18/20 #		200,000		202,138
Plains All American Pipeline
4.50% 12/15/26		80,000		81,108
8.75% 5/1/19		195,000		221,274
Regency Energy Partners 5.00% 10/1/22		155,000		166,948
Shell International Finance
2.875% 5/10/26		90,000		86,468
4.00% 5/10/46		235,000		226,498
4.375% 5/11/45		50,000		50,963
Southwestern Energy 4.95% 1/23/25		245,000		246,837
Sunoco Logistics Partners Operations 3.45% 1/15/23		60,000		59,632
Tengizchevroil Finance International 144A 4.00% 8/15/26 #		200,000		188,238
Transcanada Trust 5.875% 8/15/76 ●		130,000		137,800
Transocean Proteus 144A 6.25% 12/1/24 #		250,000		260,313
Woodside Finance
144A 3.65% 3/5/25 #		70,000		68,676
144A 3.70% 9/15/26 #		100,000		97,651
144A 8.75% 3/1/19 #		125,000		140,872

				6,990,103

Finance Companies – 1.72%
AerCap Global Aviation Trust 144A 6.50% 6/15/45 #●		400,000		414,000
AerCap Ireland Capital 3.95% 2/1/22		450,000		459,324
Air Lease 3.00% 9/15/23		140,000		136,010
Aviation Capital Group
144A 2.875% 9/17/18 #		10,000		10,137
144A 2.875% 1/20/22 #		345,000		342,389
Park Aerospace Holdings 144A 5.50% 2/15/24 #		239,000		245,871
Peachtree Corners Funding Trust 144A 3.976% 2/15/25 #		200,000		197,308
SMBC Aviation Capital Finance 144A 2.65% 7/15/21 #		200,000		194,028

				1,999,067

Insurance – 1.27%
Allstate 3.28% 12/15/26		40,000		39,904
Highmark 144A 6.125% 5/15/41 #		10,000		9,297
MetLife 5.25% 12/29/49 ●		145,000		148,625
Metropolitan Life Global Funding I 144A 3.45% 12/18/26 #		230,000		231,149


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Insurance (continued)
Principal Life Global Funding II 144A 3.00% 4/18/26 #		105,000	$	101,855
Prudential Financial
4.50% 11/15/20		50,000		53,807
5.375% 5/15/45 ●		95,000		98,087
TIAA Asset Management Finance
144A 2.95% 11/1/19 #		95,000		96,718
144A 4.125% 11/1/24 #		425,000		432,835
XLIT
4.45% 3/31/25		85,000		85,073
5.50% 3/31/45		115,000		112,956
6.50% 12/29/49 ●		80,000		67,600

				1,477,906

Natural Gas – 0.28%
KeySpan Gas East 144A 2.742% 8/15/26 #		155,000		148,159
Southern Co. Gas Capital
3.25% 6/15/26		90,000		88,230
3.95% 10/1/46		95,000		88,888

				325,277

REITs – 1.01%
Corporate Office Properties
3.60% 5/15/23		150,000		146,063
5.25% 2/15/24		85,000		89,571
DDR 7.875% 9/1/20		90,000		104,823
Education Realty Operating Partnership 4.60% 12/1/24		115,000		115,717
Hospitality Properties Trust 4.50% 3/15/25		100,000		97,882
Host Hotels & Resorts
3.75% 10/15/23		135,000		134,496
4.50% 2/1/26		5,000		5,133
Kite Realty Group 4.00% 10/1/26		45,000		43,465
Lifestorage 3.50% 7/1/26		95,000		91,186
Regency Centers 3.60% 2/1/27		60,000		59,666
Trust F/1401 144A 5.25% 1/30/26 #		200,000		190,000
WP Carey 4.60% 4/1/24		90,000		92,157

				1,170,159

Technology – 2.06%
Analog Devices
2.50% 12/5/21		25,000		24,770
3.50% 12/5/26		75,000		73,867
Apple 3.45% 2/9/45		120,000		105,479
Broadcom
144A 3.00% 1/15/22 #		125,000		124,580

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Technology (continued)
Broadcom
144A 3.625% 1/15/24 #		245,000	$	244,773
144A 3.875% 1/15/27 #		65,000		64,797
CDK Global 5.00% 10/15/24		110,000		110,137
Diamond 1 Finance
144A 6.02% 6/15/26 #		195,000		210,896
144A 8.10% 7/15/36 #		25,000		30,272
Fidelity National Information Services
3.00% 8/15/26		55,000		51,859
5.00% 10/15/25		250,000		272,213
Microsoft
2.40% 2/6/22		35,000		35,010
2.875% 2/6/24		40,000		39,939
4.10% 2/6/37		135,000		137,069
4.25% 2/6/47		135,000		136,612
4.50% 2/6/57		75,000		76,200
NXP 144A 4.625% 6/1/23 #		330,000		349,800
Oracle 4.00% 7/15/46		75,000		70,566
Samsung Electronics America 144A 1.75% 4/10/17 #		200,000		200,139
Tech Data 3.70% 2/15/22		35,000		34,936

				2,393,914

Transportation – 1.41%
Air Canada 2015-1 Class A Pass Through Trust 144A
3.60% 3/15/27 #◆		67,217		66,629
American Airlines 2014-1 Class A Pass Through Trust
3.70% 10/1/26 ◆		48,697		48,818
American Airlines 2015-1 Class A Pass Through Trust
3.375% 5/1/27 ◆		83,630		82,271
American Airlines 2015-2 Class AA Pass Through Trust
3.60% 9/22/27 ◆		24,409		24,561
American Airlines 2016-1 Class AA Pass Through Trust
3.575% 1/15/28 ◆		58,483		58,702
Avis Budget Car Rental 144A 6.375% 4/1/24 #		145,000		143,187
Burlington Northern Santa Fe 4.70% 9/1/45		275,000		302,382
CSX 3.80% 11/1/46		65,000		59,170
ERAC USA Finance
144A 3.30% 12/1/26 #		200,000		191,703
144A 4.20% 11/1/46 #		60,000		55,376
Penske Truck Leasing
144A 3.30% 4/1/21 #		115,000		116,560
144A 3.375% 2/1/22 #		215,000		217,447
144A 3.40% 11/15/26 #		25,000		24,002


	Principal amount°		Value (U.S. $)

Corporate Bonds (continued)

Transportation (continued)
Transurban Finance 144A 3.375% 3/22/27 #		60,000	$	57,054
United Airlines 2014-1 Class A Pass Through Trust
4.00% 4/11/26 ◆		41,185		42,317
United Airlines 2014-2 Class A Pass Through Trust
3.75% 9/3/26 ◆		94,232		95,646
United Airlines 2016-1 Class AA Pass Through Trust
3.10% 7/7/28 ◆		55,000		53,556

				1,639,381


Total Corporate Bonds (cost $63,084,076)				63,098,334



Municipal Bonds – 0.92%

Bay Area Toll Authority
(Build America Bond) Series S-3 6.907% 10/1/50		170,000		239,895
Commonwealth of Massachusetts
Series C 5.00% 10/1/25		90,000		109,446
New Jersey Turnpike Authority
(Build America Bonds)
Series A 7.102% 1/1/41		90,000		126,122
Series F 7.414% 1/1/40		45,000		65,425
New York City, New York
Series C 5.00% 8/1/26		25,000		29,905
Series C 5.00% 8/1/27		35,000		41,515
South Carolina Public Service Authority
Series D 4.77% 12/1/45		55,000		56,714
State of California Various Purposes
(Build America Bond) 7.55% 4/1/39		135,000		199,305
Texas Water Development Board
Series A 5.00% 10/15/45		45,000		51,074
(Master Trust) Series 2016 5.00% 10/15/46		130,000		148,568

Total Municipal Bonds (cost $1,136,873)				1,067,969



Non-Agency Asset-Backed Securities – 4.39%

AEP Texas Central Transition Funding II
Series 2006-A A4 5.17% 1/1/18		32,331		33,132
Ally Master Owner Trust
Series 2012-5 A 1.54% 9/15/19		110,000		110,124
Series 2014-4 A2 1.43% 6/17/19		180,000		180,011
ARI Fleet Lease Trust
Series 2015-A A2 144A 1.11% 11/15/18 #		43,679		43,651

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Non-Agency Asset-Backed Securities (continued)

Avis Budget Rental Car Funding AESOP
Series 2013-1A A 144A 1.92% 9/20/19 #		120,000	$	119,395
Series 2014-1A A 144A 2.46% 7/20/20 #		200,000		200,811
Bank of America Credit Card Trust
Series 2014-A3 A 1.058% 1/15/20 ●		265,000		265,158
Series 2016-A1 A 1.158% 10/15/21 ●		125,000		125,543
California Republic Auto Receivables Trust
Series 2013-1 A2 144A 1.41% 9/17/18 #		3,057		3,057
Capital One Multi-Asset Execution Trust
Series 2007-A2 A2 0.848% 12/16/19 ●		110,000		110,000
Series 2014-A4 A4 1.128% 6/15/22 ●		120,000		120,297
Chase Issuance Trust
Series 2007-C1 C1 1.227% 4/15/19 ●		100,000		100,012
Series 2013-A6 A6 1.188% 7/15/20 ●		150,000		150,485
Chesapeake Funding
Series 2014-1A A 144A 1.186% 3/7/26 #●		85,845		85,579
Citibank Credit Card Issuance Trust
Series 2016-A3 A3 1.266% 12/7/23 ●		250,000		251,208
CNH Equipment Trust
Series 2016-B A2B 1.168% 10/15/19 ●		24,774		24,760
Discover Card Execution Note Trust
Series 2013-A1 A1 1.068% 8/17/20 ●		200,000		200,219
Series 2014-A1 A1 1.198% 7/15/21 ●		200,000		200,698
Series 2016-A2 A2 1.307% 9/15/21 ●		100,000		100,659
Series 2017-A1 A1 1.252% 7/15/24 ●		135,000		135,007
Ford Credit Auto Lease Trust
Series 2015-A A3 1.13% 6/15/18		72,012		72,005
Ford Credit Auto Owner Trust
Series 2016-2 A 144A 2.03% 12/15/27 #		240,000		236,447
Series 2016-B A2B 1.078% 3/15/19 ●		89,471		89,517
Golden Credit Card Trust
Series 2014-2A A 144A 1.217% 3/15/21 #●		500,000		500,739
HOA Funding
Series 2014-1A A2 144A 4.846% 8/20/44 #		47,750		42,306
Hyundai Auto Lease Securitization Trust
Series 2016-C A3 144A 1.49% 2/18/20 #		100,000		99,847
Hyundai Auto Receivables Trust
Series 2015-C A2B 1.138% 11/15/18 ●		57,407		57,416
Mercedes-Benz Auto Lease Trust
Series 2016-A A2B 1.328% 7/16/18 ●		58,072		58,137
Mercedes-Benz Master Owner Trust
Series 2016-AA A 144A 1.347% 5/15/20 #●		100,000		100,304
Navistar Financial Dealer Note Master Owner Trust II
Series 2016-1 A 144A 2.121% 9/27/21 #●		65,000		64,798


	Principal amount°		Value (U.S. $)

Non-Agency Asset-Backed Securities (continued)

Nissan Auto Lease Trust
Series 2015-B A2B 1.298% 12/15/17 ●		38,800	$	38,828
Series 2016-A A2B 1.148% 8/15/18 ●		74,579		74,644
Series 2016-B A3 1.50% 7/15/19		100,000		99,876
Penarth Master Issuer
Series 2015-1A A1 144A 1.168% 3/18/19 #●		150,000		149,983
PFS Financing
Series 2015-AA A 144A 1.388% 4/15/20 #●		100,000		99,825
Synchrony Credit Card Master Note Trust
Series 2012-6 A 1.36% 8/17/20		100,000		100,064
Towd Point Mortgage Trust
Series 2015-5 A1B 144A 2.75% 5/25/55 #●		79,528		79,662
Toyota Auto Receivables Owner Trust
Series 2016-B A2B 1.018% 10/15/18 ●		87,999		88,049
Verizon Owner Trust
Series 2016-2A A 144A 1.68% 5/20/21 #		100,000		99,538
Volkswagen Credit Auto Master Trust
Series 2014-1A A2 144A 1.40% 7/22/19 #		265,000		264,803
Volvo Financial Equipment
Series 2014-1A A3 144A 0.82% 4/16/18 #		14,259		14,248
Wells Fargo Dealer Floorplan Master Note Trust
Series 2014-2 A 1.227% 10/20/19 ●		30,000		30,014
World Financial Network Credit Card Master Trust
Series 2015-A A 1.248% 2/15/22 ●		85,000		85,168

Total Non-Agency Asset-Backed Securities (cost $5,117,676)				5,106,024



Non-Agency Collateralized Mortgage Obligations – 1.98%

American Home Mortgage Investment Trust
Series 2005-2 5A1 5.064% 9/25/35 f		3,448		3,408
Citicorp Residential Mortgage Trust
Series 2006-3 A5 5.822% 11/25/36 f		300,000		306,520
Credit Suisse First Boston Mortgage Securities
Series 2005-5 6A3 5.00% 7/25/35		66,857		66,535
GSMPS Mortgage Loan Trust
Series 1998-2 A 144A 7.75% 5/19/27 #●		34,618		35,703
JPMorgan Mortgage Trust
Series 2006-S1 1A1 6.00% 4/25/36		49,517		50,623
Series 2007-A1 7A4 3.201% 7/25/35 ●		98,118		87,169
Series 2014-2 B1 144A 3.425% 6/25/29 #●		80,626		79,822
Series 2014-2 B2 144A 3.425% 6/25/29 #●		80,626		78,970
Series 2014-IVR6 2A4 144A 2.50% 7/25/44 #●		100,000		98,783
Series 2015-1 B1 144A 2.627% 12/25/44 #●		196,904		195,011
Series 2015-4 B1 144A 3.628% 6/25/45 #●		96,678		93,888

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Non-Agency Collateralized Mortgage Obligations (continued)

JPMorgan Mortgage Trust
Series 2015-4 B2 144A 3.628% 6/25/45 #●		96,678	$	92,272
Series 2015-5 B2 144A 2.889% 5/25/45 #●		97,987		92,369
Series 2015-6 B1 144A 3.627% 10/25/45 #●		96,729		95,215
Series 2015-6 B2 144A 3.627% 10/25/45 #●		96,729		93,819
Series 2016-4 B1 144A 3.914% 10/25/46 #●		99,588		100,873
Series 2016-4 B2 144A 3.914% 10/25/46 #●		99,588		96,886
New Residential Mortgage Loan Trust
Series 2015-2A A1 144A 3.75% 8/25/55 #●		85,543		88,234
Series 2016-4A A1 144A 3.75% 11/25/56 #●		95,586		98,978
Sequoia Mortgage Trust
Series 2013-11 B1 144A 3.668% 9/25/43 #●		92,469		92,635
Series 2014-2 A4 144A 3.50% 7/25/44 #●		51,378		51,105
Series 2015-1 B2 144A 3.88% 1/25/45 #●		47,719		47,104
Stru
Series Iff-1521 CS4 3.50% 12/31/49		100,000		14,000
Structured Asset Securities Mortgage Pass Through Certificates
Series 2004-20 2A1 5.50% 11/25/34 ◆		23,735		24,246
Towd Point Mortgage Trust
Series 2015-6 A1B 144A 2.75% 4/25/55 #●		82,307		82,313
Washington Mutual Mortgage Pass Through Certificates Trust
Series 2005-1 5A2 6.00% 3/25/35 ◆		62,705		24,384
Wells Fargo Mortgage-Backed Securities Trust
Series 2006-AR5 2A1 3.162% 4/25/36 ●		13,604		12,780
WinWater Mortgage Loan Trust
Series 2015-3 B1 144A 3.912% 3/20/45 #●		96,329		95,617

Total Non-Agency Collateralized Mortgage Obligations (cost $2,302,009)				2,299,262



Non-Agency Commercial Mortgage-Backed Securities – 5.57%

Banc of America Commercial Mortgage Trust
Series 2007-4 AM 5.818% 2/10/51 ●		80,000		81,249
Bear Stearns Commercial Mortgage Securities Trust
Series 2007-PW18 A4 5.70% 6/11/50		55,803		56,819
CD Mortgage Trust
Series 2016-CD2 A3 3.248% 11/10/49		85,000		85,912
Series 2016-CD2 A4 3.526% 11/10/49 ●		80,000		82,262
CFCRE Commercial Mortgage Trust
Series 2016-C7 A3 3.839% 12/10/54		65,000		67,484
Citigroup Commercial Mortgage Trust
Series 2007-C6 AM 5.714% 12/10/49 ●		65,000		65,789
Series 2014-GC25 A4 3.635% 10/10/47		120,000		124,496
Series 2015-GC27 A5 3.137% 2/10/48		150,000		149,910


	Principal amount°		Value (U.S. $)

Non-Agency Commercial Mortgage-Backed Securities (continued)

Citigroup Commercial Mortgage Trust
Series 2016-P3 A4 3.329% 4/15/49		110,000	$	110,993
Series 2016-P5 A4 2.941% 10/10/49		95,000		92,565
COMM Mortgage Trust
Series 2013-CR6 AM 144A 3.147% 3/10/46 #		110,000		110,361
Series 2013-WWP A2 144A 3.424% 3/10/31 #		100,000		103,624
Series 2014-CR19 A5 3.796% 8/10/47		80,000		83,805
Series 2014-CR20 AM 3.938% 11/10/47		410,000		425,892
Series 2015-3BP A 144A 3.178% 2/10/35 #		190,000		190,128
Series 2015-CR23 A4 3.497% 5/10/48		120,000		122,839
Commercial Mortgage Trust
Series 2007-GG9 AM 5.475% 3/10/39		12,172		12,166
DB-JPM
Series 2016-C1 A4 3.276% 5/10/49		190,000		191,754
Series 2016-C3 A5 2.89% 9/10/49		230,000		224,557
DB-UBS Mortgage Trust
Series 2011-LC1A C 144A 5.685% 11/10/46 #●		245,000		271,581
GRACE Mortgage Trust
Series 2014-GRCE A 144A 3.369% 6/10/28 #		300,000		312,074
Series 2014-GRCE B 144A 3.52% 6/10/28 #		200,000		206,541
GS Mortgage Securities Trust
Series 2010-C1 C 144A 5.635% 8/10/43 #●		150,000		160,121
Series 2014-GC24 A5 3.931% 9/10/47		245,000		259,206
Series 2015-GC32 A4 3.764% 7/10/48		75,000		78,321
JPM-BB Commercial Mortgage Securities Trust
Series 2015-C33 A4 3.77% 12/15/48		255,000		265,077
JPM-DB Commercial Mortgage Securities Trust
Series 2016-C2 A4 3.144% 6/15/49		200,000		199,464
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2005-CB11 E 5.524% 8/12/37 ●		35,000		36,719
Series 2013-LC11 B 3.499% 4/15/46		95,000		96,006
Series 2015-JP1 A5 3.914% 1/15/49		165,000		173,842
Series 2016-JP2 A4 2.822% 8/15/49		220,000		213,564
Series 2016-WIKI A 144A 2.798% 10/5/31 #		55,000		55,383
Series 2016-WIKI B 144A 3.201% 10/5/31 #		85,000		85,980
LB-UBS Commercial Mortgage Trust
Series 2006-C6 AJ 5.452% 9/15/39 ●		97,287		84,640
Morgan Stanley BAML Trust
Series 2014-C17 A5 3.741% 8/15/47		100,000		104,595
Series 2015-C23 A4 3.719% 7/15/50		295,000		307,157
Series 2015-C26 A5 3.531% 10/15/48		140,000		143,898
Series 2016-C29 A4 3.325% 5/15/49		95,000		95,894
Morgan Stanley Capital I Trust
Series 2006-HQ10 B 5.448% 11/12/41 ●		100,000		101,369

Schedule of investments

Delaware Strategic Income Fund


	Principal amount°		Value (U.S. $)

Non-Agency Commercial Mortgage-Backed Securities (continued)

UBS Commercial Mortgage Trust
Series 2012-C1 A3 3.40% 5/10/45		211,966	$	221,124
Wells Fargo Commercial Mortgage Trust
Series 2014-LC18 A5 3.405% 12/15/47		135,000		138,759
Series 2015-NXS3 A4 3.617% 9/15/57		90,000		92,678
Series 2016-BNK1 A3 2.652% 8/15/49		155,000		148,404
WF-RBS Commercial Mortgage Trust
Series 2012-C9 A3 2.87% 11/15/45		100,000		101,393
Series 2012-C10 A3 2.875% 12/15/45		135,000		137,148

Total Non-Agency Commercial Mortgage-Backed Securities (cost $6,608,067)				6,473,543



Regional Bonds – 0.28%D

Canada – 0.11%
Province of British Columbia Canada 2.25% 6/2/26		135,000		128,586

				128,586

Japan – 0.17%
Japan Finance Organization For Municipalities 144A 2.125% 10/25/23 #		212,000		201,745

				201,745

Total Regional Bonds (cost $345,643)				330,331



Loan Agreements – 8.99%«

Accudyne Industries Borrower 1st Lien 4.00% 12/13/19		135,000		128,199
Air Medical Group Holdings Tranche B 1st Lien 4.25% 4/28/22		472,039		471,301
Albertsons Tranche B 1st Lien 3.778% 8/25/21		230,000		231,495
Amaya Holdings 1st Lien 5.00% 8/1/21		124,684		125,541
American Airlines Tranche B 1st Lien 3.267% 12/14/23		230,000		231,610
Applied Systems Tranche 2nd Lien 7.50% 1/23/22		125,000		126,068
Aramark Services Tranche E 1st Lien 3.498% 9/7/19		102,834		103,948
Ardagh Holdings USA Tranche B 1st Lien 4.009% 12/17/21		230,000		232,983
BJ’s Wholesale Club 2nd Lien
8.50% 3/31/20		125,000		125,625
8.50% 1/27/25		83,000		84,453
Blue Ribbon Tranche 1st Lien 5.00% 11/13/21		130,000		128,822
Builders FirstSource Tranche B 1st Lien 4.75% 7/31/22		373,125		374,913
BWAY Holding Tranche B 1st Lien 4.75% 8/14/23		124,688		125,869
Caesars Growth Properties Holdings Tranche B 1st Lien 6.25% 5/8/21		124,680		125,849
Calpine Construction Finance 3.02% 5/3/20		314,186		314,906
Charter Communications Operating Tranche F 1st Lien 2.00% 1/3/21		190,000		190,546


	Principal amount°		Value (U.S. $)

Loan Agreements« (continued)

Communications Sale & Leasing Tranche B 1st Lien 4.50% 10/24/22		230,000	$	232,759
Community Health Systems Tranche H 1st Lien 4.00% 1/27/21		165,022		156,462
DaVita Tranche B 1st Lien 3.53% 6/24/21		555,750		563,826
FCA U.S. Tranche B 1st Lien 3.528% 5/24/17		96,804		96,922
First Data 1st Lien 3.584% 3/24/21		315,588		317,684
First Eagle Holdings Tranche B 1st Lien 4.998% 12/1/22		175,000		176,531
Flying Fortress Tranche B 1st Lien 3.248% 10/30/22		230,000		231,840
FMG Resources August 2006 1st Lien 3.75% 6/30/19		261,241		263,091
Gates Global 1st Lien 4.25% 7/6/21		124,676		124,560
Hilton Worldwide Finance Tranche B1 1st Lien 3.50% 10/26/20		14,070		14,202
Hilton Worldwide Finance Tranche B2 1st Lien 3.271% 10/25/23		191,295		193,492
inVentiv Group Holdings Tranche B 1st Lien 4.75% 11/9/23		230,000		231,992
JC Penney Tranche B 1st Lien 5.25% 6/23/23		308,050		309,334
Keurig Green Mountain Tranche B 1st Lien 5.313% 3/3/23		168,813		171,577
KIK Custom Products 1st Lien 5.50% 8/26/22		314,205		317,739
Kinetic Concepts Tranche F1 1st Lien 5.00% 11/4/20		319,196		320,127
Landry’s 4.00% 10/4/23		115,000		116,253
Las Vegas Sands Tranche B 1st Lien 3.02% 12/19/20		115,000		115,719
Level 3 Financing Tranche B 1st Lien 4.00% 1/15/20		250,000		252,031
MGM Growth Properties Operating Partnership Tranche B 1st Lien 3.52% 4/25/23		347,375		350,197
Nature’s Bounty Tranche B 1st Lien 5.00% 5/5/23		191,831		193,429
NXP Tranche B 1st Lien 3.27% 12/7/20		124,688		125,441
ON Semiconductor Tranche B 1st Lien 4.028% 3/31/23		314,213		317,856
Penn National Gaming Tranche B 1st Lien 3.25% 1/19/24		235,000		236,175
PQ 1st Lien 5.289% 11/4/22		244,388		247,617
Radiate Holdco 1st Lien 3.75% 2/1/23		115,000		116,068
Scientific Games International 6.00% 10/18/20		124,679		126,050
SFR Group Tranche B 1st Lien 5.289% 1/15/24		347,375		351,066
Sinclair Television Group Tranche B2 1st Lien 3.03% 1/3/24		289,608		290,909
Solera Tranche B 1st Lien 5.75% 3/3/23		138,950		140,581
Tennessee Merger Sub Tranche B 1st Lien 3.75% 2/6/24		175,000		175,000
Univision Communications Tranche C4 1st Lien 4.00% 3/1/20		328,243		329,360
USI Tranche B 1st Lien 4.25% 12/27/19		115,000		115,479

Total Loan Agreements (cost $10,404,791)				10,443,497

Schedule of investments

Delaware Strategic Income Fund


		Principal amount°		Value (U.S. $)

Sovereign Bonds – 1.09%D

Argentina – 0.15%
Argentine Republic Government International Bond 144A 5.625% 1/26/22 #			175,000	$	175,656

					175,656

Colombia – 0.17%
Colombia Government International Bond 5.00% 6/15/45			200,000		196,500

					196,500

Honduras – 0.21%
Honduras Government International Bond 144A 6.25% 1/19/27 #			250,000		249,500

					249,500

Hungary – 0.24%
Hungary Government International Bond 5.75% 11/22/23			250,000		279,560

					279,560

Mexico – 0.12%
Mexican Bonos 8.00% 6/11/20	MXN		2,754,000		136,172

					136,172

New Zealand – 0.08%
New Zealand Government Bond 2.75% 4/15/25	NZD		124,000		87,598

					87,598

South Africa – 0.12%
Republic of South Africa Government Bond 8.00% 1/31/30	ZAR		2,042,000		137,611

					137,611

Total Sovereign Bonds (cost $1,276,026)					1,262,597



Supranational Bank – 0.11%

International Bank for Reconstruction & Development 3.50% 1/22/21	NZD		180,000		132,691

Total Supranational Bank (cost $136,606)					132,691



U.S. Treasury Obligations – 1.75%

U.S. Treasury Inflation Indexed Bonds
0.125% 4/15/19			1,282,375		1,306,872
0.125% 4/15/21			458,253		465,006
U.S. Treasury Notes
1.875% 1/31/22			25,000		24,958
2.00% 12/31/21			135,000		135,575
2.00% 11/15/26			105,000		100,909

Total U.S. Treasury Obligations (cost $2,017,943)					2,033,320


	Number of shares		Value (U.S. $)

Convertible Preferred Stock – 0.02%

Bank of America 7.25% exercise price $50.00, expiration date 12/31/49		7	$	8,346
Wells Fargo & Co. 7.50% exercise price $156.71, expiration date 12/31/49		14		16,814

Total Convertible Preferred Stock (cost $26,268)				25,160



Preferred Stock – 1.12%

General Electric 5.00% ●		481,000		499,278
Integrys Holdings 6.00% ●		4,400		113,575
PNC Preferred Funding Trust II 144A 2.186% #●		300,000		289,875
U.S. Bancorp 3.50% ●		350		313,215
USB Realty 2.169% #●		100,000		84,500

Total Preferred Stock (cost $1,210,276)				1,300,443



	Principal amount°

Short-Term Investments – 3.41%

Discount Notes – 3.01%≠
Federal Home Loan Bank
0.39% 2/3/17		582,703		582,690
0.495% 2/24/17		367,267		367,175
0.505% 3/10/17		318,298		318,134
0.515% 2/6/17		482,992		482,966
0.52% 2/10/17		342,063		342,030
0.52% 2/27/17		513,095		512,950
0.521% 3/24/17		497,316		496,963
0.53% 4/25/17		397,872		397,395

				3,500,303

U.S. Treasury Obligation – 0.40%≠
U.S. Treasury Bill 0.465% 2/9/17		459,083		459,036

				459,036

Total Short-Term Investments (cost $3,959,221)				3,959,339


Total Value of Securities – 104.39%
(cost $121,783,793)			$	121,320,774

#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Jan. 31, 2017, the aggregate value of Rule 144A securities was $31,644,238, which represents 27.23% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”

◆	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.

≠	The rate shown is the effective yield at the time of purchase.

Schedule of investments

Delaware Strategic Income Fund

°	Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency.

D	Securities have been classified by country of origin.

S	Interest only security. An interest only security is the interest only portion of a fixed income security, which is separated and sold individually from the principal portion of the security.

●	Variable rate security. Each rate shown is as of Jan. 31, 2017. Interest rates reset periodically.

f	Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at Jan. 31, 2017.

The following foreign currency exchange contracts, futures contracts, and swap contracts were outstanding at Jan. 31, 2017:¹

Foreign Currency Exchange Contracts


Counterparty	Contracts to Receive (Deliver)	In Exchange For	Settlement Date	Unrealized Appreciation (Depreciation)
TD	MXN (1,222,974)	USD 56,767	3/3/17	$ (1,635)

Futures Contracts


Contracts to Buy (Sell)				Notional Cost (Proceeds)		Notional Value			Expiration Date	Unrealized Appreciation (Depreciation)
	(31	)	Euro-Bond		$ (5,468,275)	$	(5,425,599	)	3/9/17	$	42,676
	27		U.S. Treasury 10 yr Notes		3,360,823		3,360,656		3/23/17		(167	)
					$ (2,107,452)						$42,509

Interest Rate Swap Contracts²


Counterparty & Swap Referenced Obligation	Notional Value³	Fixed Interest Rate Received (Paid)	Floating Interest Rate Received (Paid)	Termination Date	Unrealized Appreciation (Depreciation)⁴
CME - CITI
30 yr IRS	250,000	(2.767%)	1.035%	12/21/46	$ (4,742)
LCH - BB
30 yr IRS	60,000	(2.661%)	1.035%	1/27/47	(397)
LCH - CITI
30 yr IRS	60,000	(2.623%)	1.035%	1/24/47	108
30 yr IRS	95,000	(2.687%)	1.035%	1/30/47	(1,166)
LCH - GS
30 yr IRS	60,000	(2.596%)	1.035%	1/23/47	459
LCH - MSC
30 yr IRS	125,000	(2.716%)	1.035%	12/22/46	(2,332)
30 yr IRS	85,000	(2.480%)	1.035%	1/11/47	2,820
					$ (5,250)

The use of foreign currency exchange contracts, futures contracts, and swap contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The notional values and foreign currency exchange contracts 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 6 in “Notes to financial statements.

²An interest rate swap agreement is an exchange of interest rates between counterparties. Periodic payments (receipt) 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 (losses) on swap contracts.

³Notional value shown is stated in U.S. dollars unless noted that the swap is denominated in another currency.

⁴Unrealized appreciation (depreciation) does not include periodic interest payments (receipt) on swap contracts accrued daily in the amount of $(4,556).

Summary of abbreviations:

ARM – Adjustable Rate Mortgage

BAML – Bank of America Merrill Lynch

BB – Barclays Bank

CDO – Collateralized Debt Obligation

CITI – Citigroup Global Markets

CLO – Collateralized Loan Obligation

CME – Chicago Mercantile Exchange Inc.

DB – Deutsche Bank

GNMA – Government National Mortgage Association

GS – Goldman Sachs

Schedule of investments

Delaware Strategic Income Fund

Summary of abbreviations (continued)

GSMPS – Goldman Sachs Reperforming Mortgage Securities

IRS – Interest Rate Swap

JPM – JPMorgan

LB – Lehman Brothers

LCH – London Clearing House

MSC – Morgan Stanley Capital

MXN – Mexican Peso

NZD – New Zealand Dollar

RBS – Royal Bank of Scotland

REIT – Real Estate Investment Trust

REMIC – Real Estate Mortgage Investment Conduit

S.F. – Single Family

TBA – To be announced

TD – Toronto Dominion Bank

UBS – Union Bank of Switzerland

USD – U.S. Dollar

WF – Wells Fargo

yr – Year

ZAR – South African Rand

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

This page intentionally left blank.


Statement of assets and liabilities
Delaware Strategic Income Fund		January 31, 2017 (Unaudited)


Assets:
Investments, at value¹	$	117,361,435
Short-term investments, at value²		3,959,339
Cash collateral due from brokers		281,051
Foreign currencies, at value³		10,749
Receivable for securities sold		5,346,898
Interest receivable		830,604
Receivable for fund shares sold		40,623
Variation margin due from broker on futures contracts		5,156
Unrealized appreciation on interest rate swap contracts		4,728
Swap payments receivable		335
Other assets⁴		97,871

Total assets		127,938,789

Liabilities:
Payable for securities purchased		10,421,032
Cash overdraft		513,678
Payable for fund shares redeemed		196,234
Other accrued expenses		97,863
Income distribution payable		91,280
Audit and tax fees payable		23,660
Distribution fees payable to affiliates		21,180
Investment management fees payable to affiliates		17,773
Variation margin due to broker on centrally cleared interest rate swap contracts		5,041
Unrealized depreciation on interest rate swap contracts		4,937
Dividend disbursing and transfer agent fees and expenses payable to affiliates		2,009
Unrealized depreciation on foreign currency exchange contracts		1,635
Swap payments payable		1,071
Accounting and administration expenses payable to affiliates		469
Trustees’ fees and expenses payable to affiliates		346
Legal fees payable to affiliates		201
Reports and statements to shareholders payable to affiliates		120
Bond proceeds payable⁴		326,237

Total liabilities		11,724,766

Total Net Assets	$	116,214,023


Net Assets Consist of:
Paid-in capital	$	120,348,973
Distributions in excess of net investment income		(655,410	)
Accumulated net realized loss on investments		(3,047,426	)
Net unrealized depreciation of investments		(463,019	)
Net unrealized depreciation of foreign currencies		(163	)
Net unrealized depreciation of foreign currency exchange contracts		(1,635	)
Net unrealized appreciation of futures contracts		42,509
Net unrealized depreciation of swap contracts		(9,806	)

Total Net Assets	$	116,214,023


Net Asset Value
Class A:
Net assets	$	56,321,241
Shares of beneficial interest outstanding, unlimited authorization, no par		6,831,527
Net asset value per share	$	8.24
Sales charge		4.50	%
Offering price per share, equal to net asset value per share / (1 – sales charge)	$	8.63

Class C:
Net assets	$	7,352,694
Shares of beneficial interest outstanding, unlimited authorization, no par		890,866
Net asset value per share	$	8.25

Class R:
Net assets	$	6,256,421
Shares of beneficial interest outstanding, unlimited authorization, no par		756,412
Net asset value per share	$	8.27

Institutional Class:
Net assets	$	46,283,667
Shares of beneficial interest outstanding, unlimited authorization, no par		5,607,965
Net asset value per share	$	8.25


¹Investments, at cost	$	117,824,572
²Short-term investments, at cost		3,959,221
³Foreign currencies, at cost		10,793
⁴See Note 11 in “Notes to financial statements.”

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

Statement of operations


Delaware Strategic Income Fund		Six months ended January 31, 2017 (Unaudited)


Investment Income:
Interest	$	1,872,479
Dividends		10,340

		1,882,819

Expenses:
Management fees		357,168
Distribution expenses – Class A		82,297
Distribution expenses – Class C		43,826
Distribution expenses – Class R		16,445
Dividend disbursing and transfer agent fees and expenses		84,523
Legal fees		40,417
Registration fees		34,165
Audit and tax fees		25,494
Reports and statements to shareholders		22,650
Accounting and administration expenses		20,346
Custodian fees		12,046
Trustees’ fees and expenses		3,115
Other		27,872

		770,364
Less expenses waived		(204,543	)
Less expense paid indirectly		(114	)

Total operating expenses		565,707

Net Investment Income		1,317,112


Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	(755,350	)
Foreign currencies		(36,333	)
Foreign currency exchange contracts		(944	)
Futures contracts		(77,350	)
Options purchased		22,753
Swap contracts		5,360

Net realized loss		(841,864	)

Net change in unrealized appreciation (depreciation) of:
Investments		(3,586,292	)
Foreign currencies		15
Foreign currency exchange contracts		(1,635	)
Futures contracts		(212,638	)
Swap contracts		(4,460	)

Net change in unrealized appreciation (depreciation)		(3,805,010	)

Net Realized and Unrealized Loss		(4,646,874	)

Net Decrease in Net Assets Resulting from Operations	$	(3,329,762	)

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

Statements of changes in net assets

Delaware Strategic Income Fund


	Six months ended 1/31/17 (Unaudited)			Year ended 7/31/16
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,317,112		$	2,372,697
Net realized gain (loss)		(841,864	)		468,130
Net change in unrealized appreciation (depreciation)		(3,805,010	)		2,558,214

Net increase (decrease) in net assets resulting from operations		(3,329,762	)		5,399,041


Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(933,121	)		(1,595,501	)
Class C		(91,380	)		(145,027	)
Class R		(85,166	)		(136,982	)
Institutional Class		(756,605	)		(1,167,961	)

Return of capital:
Class A		—			(64,610	)
Class C		—			(8,809	)
Class R		—			(6,292	)
Institutional Class		—			(48,347	)

		(1,866,272	)		(3,173,529	)


Capital Share Transactions:
Proceeds from shares sold:
Class A		4,236,146			26,720,996
Class C		1,029,940			3,897,214
Class R		376,825			1,324,152
Institutional Class		14,668,134			20,253,016


	Six months ended 1/31/17 (Unaudited)			Year ended 7/31/16
Capital Share Transactions (continued):
Net asset value of shares issued upon reinvestment of dividends and distributions:
Class A	$	858,308		$	1,520,870
Class C		84,095			142,343
Class R		83,738			143,695
Institutional Class		736,326			1,206,863

		22,073,512			55,209,149

Cost of shares redeemed:
Class A		(15,601,114	)		(23,861,526	)
Class C		(2,900,070	)		(3,104,476	)
Class R		(741,456	)		(1,640,481	)
Institutional Class		(19,308,884	)		(16,401,880	)

		(38,551,524	)		(45,008,363	)

Increase (Decrease) in net assets derived from capital share transactions		(16,478,012	)		10,200,786

Net Increase (Decrease) in Net Assets		(21,674,046	)		12,426,298

Net Assets:
Beginning of period		137,888,069			125,461,771

End of period	$	116,214,023		$	137,888,069


Distributions in excess of net investment income	$	(655,410	)	$	(106,250	)

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

Financial highlights

Delaware Strategic Income 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

Return of capital

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

Ratio of net investment income to average net assets

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	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				��
1/31/17¹ (Unaudited)	Year ended

	7/31/16				7/31/15			7/31/14			7/31/13				7/31/12

$8.570	$	8.430			$	8.530		$	8.340		$	8.750			$	8.420


0.084		0.151				0.196			0.226			0.202				0.205
(0.294)		0.192				(0.056	)		0.233			(0.328	)			0.375

(0.210)		0.343				0.140			0.459			(0.126	)			0.580



(0.120)		(0.195	)			(0.234	)		(0.234	)		(0.265	)			(0.250	)
—		(0.008	)			(0.006	)		(0.035	)		—				—
—		—				—			—			(0.019	)			—

(0.120)		(0.203	)			(0.240	)		(0.269	)		(0.284	)			(0.250	)


$8.240	$	8.570			$	8.430		$	8.530		$	8.340			$	8.750
														��

(2.46%)		4.15%				1.65%			5.60%			(1.51%	)			7.01%


$56,321	$	69,524			$	64,069		$	65,466		$	81,042			$	91,099
0.90%		0.90%				0.91%			0.90%			0.90%				0.90%
1.22%		1.21%				1.21%			1.19%			1.17%				1.18%
2.00%		1.80%				2.30%			2.70%			2.33%				2.41%
1.68%		1.49%				2.00%			2.41%			2.06%				2.13%
111%		316%				313%			273%			340%				422%

Financial highlights

Delaware Strategic Income 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

Return of capital

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

Ratio of net investment income to average net assets

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

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
1/31/17¹ (Unaudited)	Year ended

	7/31/16			7/31/15			7/31/14			7/31/13			7/31/12

$8.580	$	8.440		$	8.540		$	8.350		$	8.760		$	8.430


0.053		0.088			0.132			0.164			0.137			0.142
(0.294)		0.192			(0.056	)		0.232			(0.328	)		0.374

(0.241)		0.280			0.076			0.396			(0.191	)		0.516



(0.089)		(0.132	)		(0.170	)		(0.171	)		(0.200	)		(0.186	)
—		(0.008	)		(0.006	)		(0.035	)		—			—
—		—			—			—			(0.019	)		—

(0.089)		(0.140	)		(0.176	)		(0.206	)		(0.219	)		(0.186	)


$8.250	$	8.580		$	8.440		$	8.540		$	8.350		$	8.760


(2.82%)		3.37%			0.89%			4.81%			(2.24%	)		6.20%


$7,353	$	9,490		$	8,375		$	8,572		$	10,990		$	12,989
1.65%		1.65%			1.66%			1.65%			1.65%			1.65%
1.97%		1.96%			1.96%			1.93%			1.87%			1.88%
1.25%		1.05%			1.55%			1.95%			1.58%			1.66%
0.93%		0.74%			1.25%			1.67%			1.36%			1.43%
111%		316%			313%			273%			340%			422%

Financial highlights

Delaware Strategic Income 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

Return of capital

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

Ratio of net investment income to average net assets

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	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
1/31/17¹ (Unaudited)	Year ended

	7/31/16			7/31/15			7/31/14			7/31/13			7/31/12

$8.600	$	8.460		$	8.560		$	8.370		$	8.780		$	8.450


0.074		0.130			0.176			0.206			0.181			0.185
(0.294)		0.192			(0.056	)		0.233			(0.328	)		0.374

(0.220)		0.322			0.120			0.439			(0.147	)		0.559



(0.110)		(0.174	)		(0.214	)		(0.214	)		(0.244	)		(0.229	)
—		(0.008	)		(0.006	)		(0.035	)		—			—
—		—			—			—			(0.019	)		—

(0.110)		(0.182	)		(0.220	)		(0.249	)		(0.263	)		(0.229	)


$8.270	$	8.600		$	8.460		$	8.560		$	8.370		$	8.780


(2.57%)		3.88%			1.40%			5.32%			(1.74%	)		6.73%


$6,256	$	6,793		$	6,863		$	7,793		$	8,077		$	9,180
1.15%		1.15%			1.16%			1.15%			1.15%			1.15%
1.47%		1.46%			1.46%			1.45%			1.47%			1.48%
1.75%		1.55%			2.05%			2.45%			2.08%			2.16%
1.43%		1.24%			1.75%			2.15%			1.76%			1.83%
111%		316%			313%			273%			340%			422%

Financial highlights

Delaware Strategic Income 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

Return of capital

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

Ratio of net investment income to average net assets

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

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
1/31/17¹ (Unaudited)	Year ended

	7/31/16			7/31/15			7/31/14			7/31/13			7/31/12

$8.580	$	8.440		$	8.540		$	8.350		$	8.760		$	8.430


0.095		0.172			0.215			0.248			0.224			0.228
(0.294)		0.192			(0.053	)		0.233			(0.328	)		0.373

(0.199)		0.364			0.162			0.481			(0.104	)		0.601



(0.131)		(0.216	)		(0.256	)		(0.256	)		(0.287	)��		(0.271	)
—		(0.008	)		(0.006	)		(0.035	)		—			—
—		—			—			—			(0.019	)		—

(0.131)		(0.224	)		(0.262	)		(0.291	)		(0.306	)		(0.271	)


$8.250	$	8.580		$	8.440		$	8.540		$	8.350		$	8.760


(2.33%)		4.40%			1.90%			5.86%			(1.26%	)		7.27%


$46,284	$	52,081		$	46,155		$	30,241		$	60,210		$	75,469
0.65%		0.65%			0.66%			0.65%			0.65%			0.65%
0.97%		0.96%			0.96%			0.93%			0.87%			0.88%
2.25%		2.05%			2.55%			2.95%			2.58%			2.66%
1.93%		1.74%			2.25%			2.67%			2.36%			2.43%
111%		316%			313%			273%			340%			422%

Notes to financial statements


Delaware Strategic Income Fund		January 31, 2017 (Unaudited)

Delaware Group^® Government Fund (Trust) is organized as a Delaware statutory trust and offers two series: Delaware Emerging Markets Debt Fund and Delaware Strategic Income Fund (formerly, Delaware Core Plus Bond Fund). These financial statements and the related notes pertain to Delaware Strategic Income Fund (Fund). The Trust is an open-end investment company. The Fund is considered diversified under the Investment Company Act of 1940 (1940 Act), 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 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1.00% 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 1.00%, if redeemed during the first 12 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 high current income and, secondarily, long-term 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 — Equity securities, except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity 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, the mean between the bid and ask prices will be used, which approximates fair value. 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 normally valued at the last quoted sales price on the valuation date. Other debt securities, credit default swap (CDS) contracts, and interest rate swap contracts are valued based upon valuations provided by an independent pricing service or broker/counterparty 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. For asset-backed securities, collateralized mortgage obligations, commercial mortgage securities, and U.S. government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as broker/dealer-supplied prices. 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. Swap prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades, and values of the underlying reference instruments. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. 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 Trust’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.

Federal and Foreign 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 for all open federal income tax years (July 31, 2013–July 31, 2016), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of the Fund.

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. At Jan. 31, 2017, the Fund held no investment in repurchase agreements.

To Be Announced Trades (TBA) — The Fund may contract to purchase or sell securities for a fixed price at a transaction date beyond the customary settlement period (examples: 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 or deliver 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 or transaction is completed; however, the market value may change prior to delivery.

Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with the Fund’s prospectus. The value of all assets and liabilities denominated in foreign currencies is translated daily into U.S. dollars at the exchange rate of such currencies against the U.S. dollar. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency

Notes to financial statements

Delaware Strategic Income Fund

1. Significant Accounting Policies (continued)

transaction are reported in operations for the current period. The Fund generally bifurcates 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. That portion of gains (losses), which is due to changes in foreign exchange rates, is included on the “Statement of operations” under “Net realized gain (loss) on foreign currencies.” 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.

Use of Estimates — The Fund is an investment company, whose financial statements are prepared in conformity with U.S. GAAP. Therefore, the Fund follows the accounting and reporting guidelines for investment companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other — Expenses directly attributable to the Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated among such funds on the basis of average net assets. Management fees and certain 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 debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. 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 more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expense paid under this arrangement is included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expense offset shown under “Less expense paid indirectly.” For the six months ended Jan. 31, 2017, the Fund earned $114 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 0.55% on the first $500 million of average daily net assets of the Fund, 0.50% 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 all or a portion of its investment advisory fees and/or pay/reimburse the Fund to the extent necessary to prevent total annual operating expenses (excluding any distribution and service (12b-1) fees, acquired fund fees and expenses, taxes, interest, 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 0.65% of the Fund’s average daily net assets from Aug. 1, 2016 through Jan. 31, 2017.* These waivers and reimbursements may only be terminated by agreement of DMC and the Fund.

Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Fund. For these services, DIFSC’s fees are calculated 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 DIFSC under the service agreement described above are allocated among all funds in the Delaware Investments Family of Funds on a relative net asset value (NAV) basis. For the six months ended Jan. 31, 2017, the Fund was charged $3,048 for these services. This amount is included on the “Statement of operations” under “Accounting and administration expenses.”

DIFSC is also the transfer agent and dividend disbursing agent of the Fund. For these services, DIFSC’s fees are calculated based on the aggregate daily net assets of the retail funds within the Delaware Investments Family of Funds at the following annual rate: 0.025% of the first $20 billion; 0.020% of the next $5 billion; 0.015% of the next $5 billion; and 0.013% on average daily net assets in excess of $30 billion. The fees payable to DIFSC under the service agreement described above are allocated among all retail funds in the Delaware Investments Family of Funds on a relative NAV basis. This amount is included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended Jan. 31, 2017, the Fund was charged $13,097 for these services. Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to the Fund. Sub-transfer agency fees are paid by the Fund and are also included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.”

Pursuant to a distribution agreement and distribution plan, the Fund pays DDLP, the distributor and an affiliate of DMC, an annual 12b-1 fee of 0.25% of the average daily net assets of the Class A shares, 1.00% of the average daily net assets of the Class C shares, and 0.50% of the average daily net assets of the Class R shares. The Board has adopted a formula for calculating 12b-1 fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended 12b-1 fees equal to the sum of: (i) 0.10% of the average daily net assets representing shares

Notes to financial statements

Delaware Strategic Income Fund

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

that were acquired prior to June 1, 1992, and (ii) 0.25% of the average daily net assets representing shares that were acquired on or after June 1, 1992. All Class A shareholders currently bear 12b-1 fees at the same rate, the blended rate based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Institutional Class shares pay no 12b-1 fees.

As provided in the investment management agreement, the Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to the Fund. For the six months ended Jan. 31, 2017, the Fund was charged $1,307 for internal legal, tax, and regulatory reporting provided by DMC and/or its affiliates’ employees. This amount is included on the “Statement of operations” under “Legal fees.”

For the six months ended Jan. 31, 2017, DDLP earned $1,665 for commissions on sales of the Fund’s Class A shares. For the six months ended Jan. 31, 2017, DDLP received gross CDSC commissions of $49 and $251 on redemptions of the Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares.

Cross trades for the six months ended Jan. 31, 2017 were executed by the Fund pursuant to procedures adopted by the Board designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At its regularly scheduled meetings, the Board reviews such transactions for compliance with the procedures adopted by the Board. Pursuant to these procedures, for the six months ended Jan. 31, 2017, the Fund engaged in securities purchases of $373,540 and securities sales of $2,323,592, which resulted in net realized losses of $107.

*The aggregate contractual waiver period covering this report is from Nov. 27, 2015 through Jan. 31, 2018.

3. Investments

For the six months ended Jan. 31, 2017, the Fund made purchases and sales of investment securities other than short-term investments as follows:


Purchases other than U.S. government securities	$	120,034,132
Purchases of U.S. government securities		20,385,262
Sales other than U.S. government securities		128,334,200
Sales of U.S. government securities		20,877,556

At Jan. 31, 2017, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At Jan. 31, 2017, the cost and unrealized appreciation (depreciation) of investments were as follows:


Cost of investments	$	122,347,145
Aggregate unrealized appreciation of investments	$	1,078,535
Aggregate unrealized depreciation of investments		(2,104,906	)
Net unrealized depreciation of investments	$	(1,026,371	)

Under the Regulated Investment Company Modernization Act of 2010 (Act), net capital losses recognized for the tax years beginning after Dec. 22, 2010 may be carried forward indefinitely, and their character is retained as short-term or long-term losses.

Losses incurred that will be carried forward under the Act are as follows:


Level 1 –		Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded 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. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

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

Notes to financial statements

Delaware Strategic Income Fund

3. Investments (continued)

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of Jan. 31, 2017:


Securities	Level 1		Level 2			Level 3		Total

Agency, Asset- & Mortgage-Backed Securities¹	$	—	$	36,843,134		$	614,873	$	37,458,007
Corporate Debt		—		63,307,420			—		63,307,420
Municipal Bonds		—		1,067,969			—		1,067,969
Foreign Bonds		—		1,725,619			—		1,725,619
Loan Agreements		—		10,443,497			—		10,443,497
U.S. Treasury Obligations		—		2,033,320			—		2,033,320
Convertible Preferred Stock¹		8,346		16,814			—		25,160
Preferred Stock¹		313,215		987,228			—		1,300,443
Short-Term Investments		—		3,959,339			—		3,959,339

Total Value of Securities	$	321,561	$	120,384,340		$	614,873	$	121,320,774


Foreign Currency Exchange Contracts	$	—	$	(1,635	)	$	—	$	(1,635	)
Futures Contracts		42,509		—			—		42,509
Swap Contracts		—		(5,250	)		—		(5,250	)

¹Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments, Level 2 investments represent investments with observable inputs or matrix-priced investments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments, Level 2 investments, and Level 3 investments represent the following percentages of the total market value of these security types:


	Level 1			Level 2			Level 3			Total
Agency, Asset & Mortgage- Backed Securities		—			98.36	%		1.64	%		100.00	%
Convertible Preferred Stock		33.17	%		66.83	%		—			100.00	%
Preferred Stock		24.09	%		75.91	%		—			100.00	%

During the six months ended Jan. 31, 2017, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Fund. The Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of period in relation to the Fund’s net assets. Management has determined not to provide a reconciliation of Level 3 investments as they are not considered significant to the Fund’s net assets at the beginning, interim, or end of the period. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments are not considered significant to the Fund’s net assets at the end of the period.

4. Capital Shares

Transactions in capital shares were as follows:


	Six months ended 1/31/17			Year ended 7/31/16
Shares sold:
Class A		507,058			3,171,785
Class C		123,135			466,751
Class R		44,778			156,819
Institutional Class		1,740,187			2,416,690

Shares issued upon reinvestment of dividends and distributions:
Class A		102,568			181,533
Class C		10,036			16,964
Class R		9,978			17,085
Institutional Class		87,909			143,761

		2,625,649			6,571,388


Shares redeemed:
Class A		(1,889,057	)		(2,841,943	)
Class C		(348,152	)		(370,047	)
Class R		(88,246	)		(195,284	)
Institutional Class		(2,289,393	)		(1,959,593	)

		(4,614,848	)		(5,366,867	)

Net increase (decrease)		(1,989,199	)		1,204,521

Certain shareholders may exchange shares of one class for shares of another class in the same fund. For the year ended July 31, 2016, 444,706 Class A shares were exchanged to 444,814 Institutional Class shares valued at $3,772,744. The exchange transactions are included as subscriptions and redemptions in the table above and the “Statements of changes in net assets.”

5. Line of Credit

The Fund, along with certain other funds in the Delaware Investments^® Family of Funds (Participants), was a participant in a $155,000,000 revolving line of credit intended 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 of 0.10%, which was allocated

Notes to financial statements

Delaware Strategic Income Fund

5. Line of Credit (continued)

across the Participants on the basis of relative net assets 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. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the agreement expired on Nov. 7, 2016.

The Fund had no amounts outstanding as of Jan. 31, 2017, or at any time during the period then ended.

6. 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 and foreign cross 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 securities 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. In addition, the Fund may enter into these contracts to facilitate or expedite the settlement of portfolio transactions. 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.

During the six months ended Jan. 31, 2017, the Fund used foreign currency exchange contracts to hedge the U.S. dollar value of securities it already owned that were denominated in foreign currencies.

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. The Fund may use futures contracts in the normal course of pursuing its investment objective. The Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in fair value caused by changes in interest rates or market conditions. Upon entering into a futures contract, the Fund deposits cash or pledges U.S. government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is reduced counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. At Jan. 31, 2017, the Fund posted $126,000 in cash as collateral for open futures contracts, which is presented as “Cash collateral due from brokers” on the “Statement of assets and liabilities.”

Options Contracts – During the six months ended Jan. 31, 2017, the Fund entered into options contracts in the normal course of pursuing its investment objective. The Fund may buy or write options contracts for any number of reasons, including without limitation: to manage the Fund’s exposure to changes in securities prices caused by interest rates or market conditions and foreign currencies; as an efficient means of adjusting the Fund’s overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. The Fund may buy or write call or put options on securities, futures, swaps, swaptions, financial indices, and foreign currencies. When the Fund buys an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the option purchased. When the Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The 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, the Fund is subject to minimal counterparty risk because the counterparty

Notes to financial statements

Delaware Strategic Income Fund

6. Derivatives (continued)

is only obligated to pay premiums and does not bear the market risk of an unfavorable market change. No options contracts were outstanding at Jan. 31, 2017.

There were no transactions in options written during the six months ended Jan. 31, 2017.

During the six months ended Jan. 31, 2017, the Fund used options contracts to manage the Fund’s exposure to changes in securities prices caused by interest rates or market conditions.

Swap Contracts — The Fund may enter into interest rate swap contracts and CDS contracts in the normal course of pursuing its investment objective. The Fund may enter interest rate swaps to manage the Fund’s sensitivity to interest rates or 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. The Fund will not be permitted to enter into any swap transactions unless, at the time of entering into such transactions, the unsecured long-term debt of the actual counterparty, combined with any credit enhancements, is rated at least BBB- by Standard & Poor’s Financial Services LLC (S&P) or Baa3 by Moody’s Investors Service, Inc. (Moody’s) or is determined to be of equivalent quality by DMC.

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 payments (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 (1) for bilateral swap contracts, 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, and (2) for cleared swaps, trading these instruments through a central counterparty.

During the six months ended Jan. 31, 2017, the Fund used interest rate swap contracts to manage the Fund’s sensitivity to interest rates or to hedge against changes in interest rates.

basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.

During the six months ended Jan. 31, 2017, the Fund entered into CDS contracts as a purchaser and seller of protection, as a hedge against credit events. 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 daily as unrealized appreciation or depreciation. 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. Initial margin and variation margin are posted to central counterparties for centrally cleared CDS basket trades, as determined by the applicable central counterparty.

CDS contracts may involve greater risks than if the Fund had invested in the reference obligation directly. CDS contracts 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 (1) for bilateral swap contracts, 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, or (2) for cleared swaps, trading these instruments through a central counterparty. No CDS contracts were outstanding at Jan. 31, 2017.

During the six months ended Jan. 31, 2017, the Fund used CDS contracts to hedge against credit events.

Swaps Generally. The value of open swaps may differ from that which would be realized in the event the Fund terminated its position in the contract on a given day. 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 “Schedule of investments.”

At Jan. 31, 2017, the Fund posted $84,051 in cash as collateral for open centrally cleared swap contracts and $71,000 as cash collateral for certain open derivatives, which is presented as “Cash collateral due from brokers” on the “Statement of assets and liabilities.”

Notes to financial statements

Delaware Strategic Income Fund

6. Derivatives (continued)

Fair values of derivative instruments as of Jan. 31, 2017 was as follows:


			Asset Derivatives Fair Value
Statement of Assets and Liabilities Location	Equity Contracts		Interest Rate Contracts		Total
Variation margin due from broker on futures contracts*		$42,676		$ —		$42,676
Unrealized appreciation on interest rate swap contracts		—		4,728		4,728

Total		$42,676		$4,728		$47,404


	Liability Derivatives Fair Value
Statement of Assets and Liabilities Location	Currency Contracts		Interest Rate Contracts		Total
Unrealized depreciation on foreign currency exchange contracts		$1,635		$ —		$ 1,635
Variation margin due from broker on futures contracts*		—		167		167
Unrealized depreciation on interest rate swap contracts		—		4,937		4,937
Variation margin due to broker on centrally cleared interest rate swap contracts		—		5,041		5,041

Total		$1,635		$10,145		$11,780

*Includes cumulative appreciation / depreciation from futures contracts from the date the contracts were opened through Jan. 31, 2017. Only current day variation margin is reported on the Fund’s “Statement of assets and liabilities.”

The effect of derivative instruments on the “Statement of operations” for the six months ended Jan. 31, 2017 was as follows:


	Net Realized Gain (Loss) on:
	Foreign Currency Exchange Contracts			Futures Contracts			Options Purchased		Swap Contracts			Total
Currency contracts	$	(944	)	$	—		$	—	$	—		$	(944	)
Interest rate contracts		—			(22,336	)		22,753		(1,583	)		(1,166	)
Equity contracts		—			(55,014	)		—		—			(55,014	)
Credit contracts		—			—			—		6,943			6,943

Total	$	(944	)	$	(77,350	)	$	22,753	$	5,360		$	(50,181	)


	Net Change in Unrealized Appreciation (Depreciation) of:
	Foreign Currency Exchange Contracts			Futures Contracts			Swap Contracts			Total
Currency contracts	$	(1,635	)	$	—		$	—		$	(1,635	)
Interest rate contracts		—			(301,629	)		(9,806	)		(311,435	)
Equity contracts		—			88,991			—			88,991
Credit contracts		—			—			5,346			5,346

Total	$	(1,635	)	$	(212,638	)	$	(4,460	)	$	(218,733	)

Derivatives Generally. The table below summarizes the average balance of derivative holdings by the Fund during the six months ended Jan. 31, 2017:


		Long Derivative Volume			Short Derivative Volume
Foreign currency exchange contracts (average cost)	USD		149,683	USD		33,137
Futures contracts (average notional value)			5,076,433			8,148,795
Options contracts (average notional value)			3,029			—
CDS contracts (average notional value)*			234,764			—
Interest rate swap contracts (average notional value)**			356,890			—

*Long represents buying protection and short represents selling protection.

**Long represents paying fixed interest payments and short represents receiving fixed interest payments.

7. Offsetting

In December 2011, the Financial Accounting Standards Board (FASB) issued guidance that expanded disclosure requirements on the offsetting of certain assets and liabilities. The disclosures are required for investments and derivative financial instruments subject to master netting or similar agreements which are eligible for offset on the “Statement of assets and liabilities” and require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarified which investments and transactions are subject to

Notes to financial statements

Delaware Strategic Income Fund

7. Offsetting (continued)

the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting is limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing.

In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund entered into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or a similar agreement with certain of its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs over-the-counter (OTC) derivatives and foreign exchange contracts and typically contains, among other things, collateral posting items and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out), including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements on the “Statement of assets and liabilities.”

At Jan. 31, 2017, the Fund had the following assets and liabilities subject to offsetting provisions:

Offsetting of Financial Assets and Liabilities and Derivative Assets and Liabilities


Counterparty	Gross Value of Derivative Asset	Gross Value of Derivative Liability	Net Position

Toronto Dominion Bank	$—	$(1,635)	$(1,635)


		Gross Amounts Not Offset in the Statement of Assets and Liabilities

Counterparty	Net Position	Fair Value of Non-Cash Collateral Received	Cash Collateral Received	Fair Value of Non-Cash Collateral Pledged	Cash Collateral Pledged	Net Exposure^(a)

Toronto Dominion Bank	$(1,635)	$—	$—	$—	$—	$(1,635)

^(a)Net exposure represents the receivable (payable) that would be due from (to) the counterparty in the event of default.

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: (1) 102% with respect to U.S. securities and foreign securities that are denominated and payable in U.S. dollars; and (2) 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 that are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day may be more or less than the value of the security on loan.

Cash collateral received by each Fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a Fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by U.S. Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities ,or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; and asset-backed securities.

During the six months ended Jan. 31, 2017, the Fund had no securities out on loan.

9. Credit and Market Risk

The Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by S&P and lower than Baa3 by Moody’s, or similarly rated by another nationally

Notes to financial statements

Delaware Strategic Income Fund

9. Credit and Market Risk (continued)

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 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.

As the Fund may be required to rely upon another lending institution to collect and pass on to the Fund amounts payable with respect to the loan and to enforce the Fund’s rights under the loan and other direct indebtedness, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Fund from receiving such amounts. The highly leveraged nature of many loans may make them especially vulnerable to adverse changes in economic or market conditions. Investments in such loans and other direct indebtedness may involve additional risk to the Fund.

The Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction or through a combination of such approaches. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of the security.

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 promulgated under 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 have been identified on the “Schedule of investments.”

10.

Contractual Obligations

11.

General Motors Term Loan Litigation

The Fund received notice of a litigation proceeding related to a General Motors Corporation (G.M.) term loan participation previously held by the Fund in 2009. We believe the matter subject to the litigation notice will likely lead to a recovery from the Fund of certain amounts received by the Fund because a U.S. Court of Appeals has ruled that the Fund and similarly situated investors were unsecured creditors rather than secured lenders of G.M. as a result of an erroneous Uniform Commercial Code filing made by a third party. The Fund received the full principal on the loans in 2009 after the G.M. bankruptcy. However, based upon the court ruling the estate is seeking to recover such amounts arguing that, as unsecured creditors, the Fund should not have received payment in full. Based upon currently available information related to the litigation and the Fund’s potential exposure, the Fund recorded a liability of $326,237 and an asset of $97,871 based on the expected recoveries to unsecured creditors as of Jan. 31, 2017 that resulted in a net decrease in the Fund’s NAV to reflect this likely recovery.

12.

Recent Accounting Pronouncements

Notes to financial statements

Delaware Strategic Income Fund

13.

Subsequent Events

Effective Jan. 31, 2017, the Fund’s name, portfolio management team, and investment objectives, strategies and policies changed and the Fund was repositioned as a strategic income fund. In connection with the repositioning, the Fund’s name changed to Delaware Strategic Income Fund.

Management has determined that no other material events or transactions occurred subsequent to Jan. 31, 2017 that would require recognition or disclosure in the Fund’s financial statements.

Other Fund information (Unaudited)

Delaware Strategic Income Fund

Board consideration of Delaware Strategic Income Fund investment advisory agreement

At a meeting held on Aug. 16–18, 2016 (the “Annual Meeting”), the Board of Trustees (collectively referred to here as the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreement for Delaware Core Plus Bond Fund, currently known as Delaware Strategic Income Fund after the Fund’s repositioning described in Note 13, (the “Fund”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment, strategies, and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Management Agreement with Delaware Management Company (“DMC”) 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 investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, reports were provided to the Trustees in May 2016 and included reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared the Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; comparative client fee information; and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’s ability to invest fully in accordance with Fund policies.

Other Fund information (Unaudited)

Delaware Strategic Income Fund

Board consideration of Delaware Strategic Income Fund investment advisory agreement (continued)

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 DMC.

Investment performance. The Board placed significant emphasis on the investment performance of the Fund in view of the importance of investment performance 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 Broadridge reports furnished for the Annual Meeting. The Broadridge 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 Broadridge (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 1-, 3-, 5-, and 10-year periods, to the extent applicable, ended Jan. 31, 2017. 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 Performance Universe for the Fund consisted of the Fund and all retail and institutional core plus bond funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1- and 5-year periods was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the 3- and 10-year period was in the second quartile of its Performance Universe. The Fund’s performance results were mixed but tended toward median, which was acceptable.

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 Broadridge (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 Broadridge for Class A shares and comparative total expenses including 12b-1 and non-12b-1 service fees. The Board’s objective is to limit the Fund’s total expense ratio to be competitive with that of the Expense Group.

The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Groups and its total expenses were in the quartile with the second lowest expenses of its Expense Group. In evaluating total expenses, the Board considered fee waivers in place through Nov. 28, 2016 and various initiatives implemented by Management, such as the

negotiation of lower fees for fund accounting services, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.

Management profitability. The Board considered the level of profits realized by DMC 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 DMC’s 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 DMC, to a certain extent, reflects recent operational cost savings and efficiencies initiated by DMC. The Board considered DMC’s 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 DMC 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 DMC.

Economies of scale. The Trustees considered whether economies of scale are realized by DMC 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, and which applies to most funds in the Delaware Investments Family of Funds complex. 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 in the absence of breakpoints, when the asset levels specified in the breakpoints are exceeded. The Board noted that the fee under the Fund’s management contract fell within the standardized fee pricing structure. Although the Fund has not reached a size at which it can take advantage of any breakpoints in the applicable fee schedule, the Board recognized that the fee was structured so that if the Fund grows, economies of scale may be shared.

About the organization

Board of trustees

Shawn K. Lytle

President and

Chief Executive Officer

Delaware Investments ^®

Family of Funds

Philadelphia, PA

Thomas L. Bennett

Chairman of the Board

Delaware Investments

Family of Funds

Private Investor

Rosemont, PA

Ann D. Borowiec

Former Chief Executive

Officer

Private Wealth Management

J.P. Morgan Chase & Co.

New York, NY

Joseph W. Chow

Former Executive Vice

President

State Street Corporation

Boston, MA

John A. Fry

President

Drexel University

Philadelphia, PA

Lucinda S. Landreth

Former Chief Investment

Officer

Assurant, Inc.

New York, NY

Frances A.

Sevilla-Sacasa

Former Chief Executive

Officer

Banco Itaú

International

Miami, FL

Thomas K. Whitford

Former Vice Chairman

PNC Financial Services Group

Pittsburgh, PA

Janet L. Yeomans

Former Vice President and

Treasurer

3M Company

St. Paul, MN

Affiliated officers

David F. Connor

Senior Vice President,

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

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 Strategic Income 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 delawareinvestments.com/literature.

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

PwC has informed the Trust that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being considered independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm. PwC has informed the Trust that PwC has relationships with lenders who hold or own more than ten percent of the shares of certain funds within the Delaware Funds^SM by Macquarie. These relationships call into question PwC’s independence under the Loan Rule with respect to those funds, as well as all other funds in the complex. The SEC has granted no-action relief to another fund complex in circumstances that appear to be substantially similar to the Trust’s (see Fidelity Management & Research Company et al., No-Action Letter (June 20, 2016)). In addition, PwC has advised the Trust’s Audit Committee that PwC believes that under the facts and circumstances surrounding PwC’s lending relationships, its ability to exercise objective and impartial judgment in connection with its audit engagement with the Trust has not been impaired and that a reasonable investor with knowledge of all relevant facts and circumstances would reach the same conclusion. If in the future, however, the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Trust will need to take other action in order for the Trust’s filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Finally, the SEC has indicated that its no-action relief will expire 18 months from its issuance, after which PwC and the Delaware Funds^SM by Macquarie will no longer be able rely on the letter unless its term is extended or made permanent by the SEC Staff.

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.

DELAWARE GROUP^® GOVERNMENT FUND

/s/ SHAWN K. LYTLE
By:	Shawn K. Lytle
Title:	President and Chief Executive Officer
Date:	April 5, 2017

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/ SHAWN K. LYTLE
By:	Shawn K. Lytle
Title:	President and Chief Executive Officer
Date:	April 5, 2017


/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	April 5, 2017

No Expiration

Loss carryforward character

Short-term

$1,106,735