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: | 811-04413 | |
| Exact name of registrant as specified in charter: | Delaware Group® Equity Funds IV | |
| Address of principal executive offices: | 610 Market Street | |
| Philadelphia, PA 19106 | ||
| Name and address of agent for service: | David F. Connor, Esq. | |
| 610 Market Street | ||
| Philadelphia, PA 19106 | ||
| Registrant’s telephone number, including area code: | (800) 523-1918 | |
| Date of fiscal year end: | September 30 | |
| Date of reporting period: | September 30, 2021 |
Item 1. Reports to Stockholders
 |  |
Annual report | |
| Equity funds | Alternative/specialty funds |
| Delaware Equity Income Fund Delaware Growth and Income Fund Delaware Growth Equity Fund Delaware Opportunity Fund Delaware Global Equity Fund | Delaware Covered Call Strategy Fund Delaware Hedged U.S. Equity Opportunities Fund Delaware Premium Income Fund Multi-asset fund Delaware Total Return Fund |
September 30, 2021
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.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 delawarefunds.com/edelivery.
Experience Delaware Funds by Macquarie®
Macquarie Investment Management (MIM) is a global asset manager with offices in the United States, Europe, Asia, and Australia. As active managers, we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for the Funds at delawarefunds.com/literature.
Manage your account online
| ● | Check your account balance and transactions |
| ● | View statements and tax forms |
| ● | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. MIM is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
The Funds are governed by US laws and regulations.
Unless otherwise noted, views expressed herein are current as of September 30, 2021, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2021 Macquarie Management Holdings, Inc.
Portfolio management reviews
Delaware Equity Income Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Equity Income Fund (Institutional Class shares) | 1-year return | +30.91% | ||
| Delaware Equity Income Fund (Class A shares) | 1-year return | +30.49% | ||
| Russell 1000® Value Index (benchmark) | 1-year return | +35.01% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Equity Income Fund, please see the table on page 19.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 21 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks total return.
At a meeting on November 18, 2020, Delaware Group® Equity Funds IV Board of Trustees (the “Board”) approved the replacement of the Fund’s current portfolio managers with the Global Systematic Investments team of the Fund’s current sub-advisor, Macquarie Investment Management Global Limited (MIMGL). In connection with this determination, the Board approved certain changes to the Fund’s investment strategies. These portfolio management and strategy changes were effective on or about January 29, 2021. The investment management changes may result in higher portfolio turnover in the near term, as the new portfolio management team purchases and sells securities to accommodate the investment changes. A higher portfolio turnover is likely to cause the Fund to realize capital gains and incur transaction costs. You should consult your financial advisor about the changes that will result from the investment strategy changes. Please see the supplement in the Fund’s prospectus dated November 23, 2020 for more information.
Market review
Overall, equity markets were strong during the fiscal year ended September 30, 2021, recording new highs in each quarter. Investors were buoyed by the Federal Reserve’s commitment to an accommodative monetary policy. Together with the successful introduction of COVID-19 vaccines, which enabled many businesses to reopen and resume near-normal activity, investors had ample reason to be optimistic.
The 12-month period was not without concerns, however, chief among them the threat of inflation, supply-chain disruptions, an acute labor shortage, and uneven vaccination acceptance that threatened renewed lockdowns in some areas of the country.
Throughout the latter half of the fiscal period, investors and economists debated whether the uptick in inflation was transitory. Bond yields increased slightly in response to inflationary concern but remained at relatively low levels.
Both the supply-chain disruptions and the shortage of workers willing to fill many service and hospital jobs were also unresolved at period end, making it difficult for many businesses to resume normal business activity. Although the introduction of COVID-19 vaccines was met with great enthusiasm initially, as the summer months approached, the vaccination rates declined dramatically, though not uniformly across the country. The high degree of vaccination resistance proved to be problematic, especially given the highly transmissible Delta variant.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Equity Income Fund underperformed its benchmark, the Russell 1000® Value Index. The Fund’s Institutional Class shares gained 30.91%. The Fund’s Class A shares gained 30.49% at net asset value (NAV) and 23.00% at maximum offer price. These figures reflect reinvestment of all distributions. During the same period, the Fund’s benchmark gained 35.01%. For complete, annualized performance of Delaware Equity Income Fund, please see the table on page 19.
Following is a discussion about performance during the period from January 29, 2021 (when the Global Systematic Investments team began managing the Fund) to September 30, 2021.
On a sector basis, industrials, information technology (IT), and energy contributed to Fund performance during the period that the team managed the Fund. The strong performance from industrials was driven mainly by positive stock selection although sector allocation also contributed. In particular, holdings in Caterpillar Inc., Raytheon Technologies Corp., and Northrop Grumman Corp. contributed to the Fund’s performance. Construction and mining equipment manufacturer Caterpillar hit record highs during the
1
Portfolio management reviews
Delaware Equity Income Fund
period that the team managed the Fund. Caterpillar’s largest global dealer, Finning International Inc., reported solid sequential demand improvement, with demand for mining equipment notably picking up in Canada and Latin America. This is a positive sign for us that restocking of dealer inventory is beginning.
In the IT sector, stock selection was the key driver, although this was partially offset by a negative sector allocation effect. Overweight positions in Motorola Solutions Inc. and Oracle Corp. were the largest contributors to performance.
Stock selection drove outperformance in the energy sector, while sector allocation was neutral. The key driver was an overweight holding in ConocoPhillips. The company announced in March that it is resuming a share-buyback program that was previously suspended. It expects to buy back shares at an annualized rate of $1.5 billion, 50% more than before. ConocoPhillips also intends to return more than 30% of its cash from operations to shareholders every year. In a statement, the CEO said that commodity prices have strengthened such that the dividend alone may not be sufficient to meet the company’s return-of-capital (ROC) commitment.
Healthcare, materials, and communication services were the leading detractors from performance during the period that the team managed the Fund. Healthcare was the main detractor, driven by both negative stock selection and sector allocation. Among the Fund’s holdings, shares of Viatris Inc. fell after the pharmaceutical and healthcare services company provided a downbeat revenue outlook for 2021, adding that it was initiating a dividend. The company, formed in November 2020 through the combination of Mylan and Pfizer Inc.’s Upjohn business, said it expects 2021 revenue of $17.2 billion to $17.8 billion, compared to the consensus estimate of $18.4 billion.
Underperformance in materials was driven by stock selection. The sector allocation effect was flat. An overweight in DuPont de Nemours Inc. detracted from performance, while underweight positions in companies such as Nucor Corp., Freeport-McMoRan Inc.,and Steel Dynamics Inc. also detracted from performance.
In communication services, stock selection detracted from performance, while sector allocation was neutral. Holdings in AT&T Inc. and Verizon Communications Inc. were key detractors.
As of the close of the fiscal year, the Fund held 49 names diversified across sectors. Cash was 0.3% of the total portfolio and no derivative instruments were held. From a sector positioning point of view, the Fund was overweight energy, healthcare, and IT and was underweight financials, real estate, and utilities. The largest active positions were First American Financial Corp. and technology firms Motorola Solutions and Broadcom Inc. From a factor perspective, at the end of the period the Fund had a quality and value tilt. Due to the Fund’s objective, there was also a large exposure to income.
2
Portfolio management reviews
Delaware Growth and Income Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Growth and Income Fund (Institutional Class shares) | 1-year return | +31.19% | ||
| Delaware Growth and Income Fund (Class A shares) | 1-year return | +30.89% | ||
| Russell 1000® Value Index (benchmark) | 1-year return | +35.01% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Growth and Income Fund, please see the table on page 22.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 24 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks long-term growth of capital and current income.
At a meeting on November 18, 2020, Delaware Group® Equity Funds IV Board of Trustees (the “Board”) approved the replacement of the Fund’s current portfolio managers with the Global Systematic Investments team of the Fund’s current sub-advisor, Macquarie Investment Management Global Limited (MIMGL). In connection with this determination, the Board approved certain changes to the Fund’s investment strategies. These portfolio management and strategy changes were effective on or about January 29, 2021. The investment management changes may result in higher portfolio turnover in the near term, as the new portfolio management team purchases and sells securities to accommodate the investment changes. A higher portfolio turnover is likely to cause the Fund to realize capital gains and incur transaction costs. You should consult your financial advisor about the changes that will result from the investment strategy changes. Please see the supplement in the Fund’s prospectus dated November 23, 2020 for more information.
Market review
Overall, equity markets were strong during the fiscal year ended September 30, 2021, recording new highs in each quarter. Investors were buoyed by the Federal Reserve’s commitment to an accommodative monetary policy. Together with the successful introduction of COVID-19 vaccines, which enabled many businesses to reopen and resume near-normal activity, investors had ample reason to be optimistic.
The 12-month period was not without concerns, however, chief among them the threat of inflation, supply-chain disruptions, an acute labor shortage, and uneven vaccination acceptance that threatened renewed lockdowns in some areas of the country.
Throughout the latter half of the fiscal period, investors and economists debated whether the uptick in inflation was transitory. Bond yields increased slightly in response to inflationary concern but remained at relatively low levels.
Both the supply-chain disruptions and the shortage of workers willing to fill many service and hospital jobs were also unresolved at period end, making it difficult for many businesses to resume normal business activity. Although the introduction of COVID-19 vaccines was met with great enthusiasm initially, as the summer months approached, the vaccination rates declined dramatically, though not uniformly across the country. The high degree of vaccination resistance proved to be problematic, especially given the highly transmissible Delta variant.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Growth and Income Fund underperformed its benchmark, the Russell 1000® Value Index. The Fund’s Institutional Class shares gained 31.19%. The Fund’s Class A shares gained 30.89% at net asset value (NAV) and 23.35% at maximum offer price. These figures reflect reinvestment of all distributions. During the same period, the Fund’s benchmark gained 35.01%. For complete, annualized performance of Delaware Growth and Income Fund, please see the table on page 22.
Following is a discussion about performance during the period from January 29, 2021 (when the Global Systematic Investments team began managing the Fund) to September 30, 2021.
On a sector basis, industrials, information technology (IT), and energy contributed to Fund performance during the period that the team managed the Fund. The strong performance from industrials was driven mainly by positive stock selection although sector allocation also contributed. In particular, holdings in Caterpillar Inc., Raytheon Technologies Corp.,and Northrop Grumman Corp. contributed to the Fund’s performance. Construction and mining equipment manufacturer Caterpillar hit record highs during the
3
Portfolio management reviews
Delaware Growth and Income Fund
period that the team managed the Fund. Caterpillar’s largest global dealer, Finning International Inc., reported solid sequential demand improvement, with demand for mining equipment notably picking up in Canada and Latin America. This is a positive sign for us that restocking of dealer inventory is beginning.
In the IT sector, stock selection was the key driver, although this was partially offset by a negative sector allocation effect. Overweight positions in Motorola Solutions Inc. and Oracle Corp. were the largest contributors to performance.
Stock selection drove outperformance in the energy sector, while sector allocation was neutral. The key driver was an overweight holding in ConocoPhillips. The company announced in March that it is resuming a share-buyback program that was previously suspended. It expects to buy back shares at an annualized rate of $1.5 billion, 50% more than before. ConocoPhillips also intends to return more than 30% of its cash from operations to shareholders every year. In a statement the CEO said that commodity prices have strengthened such that the dividend alone may not be sufficient to meet the company’s return-of-capital (ROC) commitment.
Healthcare, materials, and communication services were the leading detractors from performance during the period that the team managed the Fund. Healthcare was the main detractor, driven by both negative stock selection and sector allocation. Among the Fund’s holdings, shares of Viatris Inc. fell after the pharmaceutical and healthcare services company provided a downbeat revenue outlook for 2021, adding that it was initiating a dividend. The company, formed in November 2020 through the combination of Mylan and Pfizer Inc.’s Upjohn business, said it expects 2021 revenue of $17.2 billion to $17.8 billion, compared to the consensus estimate of $18.4 billion.
Underperformance in materials was driven by stock selection. The sector allocation effect was flat. An overweight in DuPont de Nemours Inc. detracted from performance, while underweight positions in companies such as Nucor Corp., Freeport-McMoRan Inc., and Steel Dynamics Inc. also detracted from performance.
In communication services, stock selection detracted from performance, while sector allocation was neutral. Holdings in AT&T Inc. and Verizon Communications Inc. were key detractors.
As of the close of the fiscal year, the Fund held 49 names diversified across sectors. Cash was 0.3% of the total portfolio and no derivative instruments were held. From a sector positioning point of view, the Fund was overweight energy, healthcare, and IT and was underweight financials, real estate, and utilities. The largest active positions were First American Financial Corp. and technology firms Motorola Solutions and Broadcom Inc. From a factor perspective, at the end of the period the Fund had a quality and value tilt. Due to the Fund’s objective, there was also a large exposure to income.
4
Portfolio management reviews
Delaware Growth Equity Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Growth Equity Fund (Institutional Class shares) | 1-year return | +41.98% | ||
| Delaware Growth Equity Fund (Class A shares) | 1-year return | +41.67% | ||
| Russell 1000® Growth Index (benchmark) | 1-year return | +27.32% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Growth Equity Fund, please see the table on page 25.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 27 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks long-term growth of capital.
Smith Asset Management Group, L.P. (Smith), a US registered investment advisor, is the sub-advisor to the Fund. As sub-advisor, Smith is responsible for day-to-day management of the Fund’s assets. Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), has ultimate responsibility for all investment advisory services.
The 12-month period ended September 30, 2021 continued to build on the economic rebound from the COVID-19 pandemic. The Fund’s benchmark, the Russell 1000® Growth Index, started the fiscal period strongly, rising 11.4% for the final quarter of 2020. The benchmark went on to record four positive quarterly moves for the fiscal year, two barely positive and two quarterly gains of more than 11%.
Optimistic projections of very strong global economic growth have trended downward toward more reasonable levels. The combination of the COVID-19 Delta variant and supply chain bottlenecks have acted like a dam holding back the gush of liquidity into the economy. Yet while growth has been inhibited, it has not been derailed. Economic reports earlier in the calendar year were pervasively ahead of expectations and the outlook for the rest of 2021 grew to be quite optimistic. Those hurdles became more difficult to achieve, however, given some of the constraints that businesses experienced and a resurgence of a new, more infectious COVID strain.
The Citigroup® Economic Surprise Index turned negative in August and drifted down to the bottom decile of historic readings before bottoming in mid-September. Manufacturers reported strong demand, but tight inputs made it difficult to meet that demand. As the fiscal year ended, a tight labor market, materials shortages, inflation, and logistics issues continued to cause capacity constraints.
Our investment process is centered on a specific and clearly defined fundamental outcome: Companies that can sustainably grow earnings faster than expected have the potential to outperform over time. During the fiscal year, the Fund’s holdings delivered 31.4% earnings growth versus an expectation of 6.3%, compared with the benchmark, where holdings delivered 21.4% earnings growth versus an expectation of 8.0%.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Growth Equity Fund outperformed its benchmark, the Russell 1000 Growth Index. The Fund’s Institutional Class shares gained 41.98%. The Fund’s Class A shares gained 41.67% at net asset value and 33.56% at maximum offer price. These figures reflect all distributions reinvested. For the same period, the benchmark gained 27.32%. For complete, annualized performance of Delaware Growth Equity Fund, please see the table on page 25.
The information technology sector – with holdings gaining 48% – was the strongest contributor to the Fund’s returns, even while holdings in the financials and communication services sectors delivered stronger absolute returns at 68% and 55%, respectively. Shares of Fortinet Inc., a provider of both hardware- and software-based cyber-security solutions, gained 150% as the company benefited from businesses reevaluating their technology needs in a post-pandemic environment. Zebra Technologies Corp. is a developer of automated identification and data capture technologies such as bar-code and radio-frequency identification (RFID) equipment that are used in a variety of end markets, including retail and ecommerce, manufacturing, healthcare, logistics, banking, and others. The company saw demand grow at a strong pace, as economic activity rebounded. Shares rose 105% during the fiscal year. Shares of EPAM Systems Inc., a provider of software product
5
Portfolio management reviews
Delaware Growth Equity Fund
development and digital platform engineering, rose 77% during the 12-month period due to growing demand for business processing outsourcing services.
While cash in the Fund’s portfolio was the largest detractor from performance, causing a 0.4% drag for the fiscal year, the communication services sector also had a negative effect on the Fund’s relative returns. Alphabet Inc., the parent company of Google, was the most significant source of return in the sector with a gain of 83% during the period. With an average weight of 5.3% in the benchmark, the Fund’s exposure of just 3.6% caused a significant negative relative return for the sector. Thus, although the Fund’s holdings in the sector delivered the second-strongest absolute returns at 55% during the fiscal year, the overall effect relative to the benchmark was negative due to the lower weight of the Alphabet position. The Fund’s two other largest individual detractors for the 12-month period were Tesla Inc. and Moderna, Inc. The Fund held neither stock based on valuation concerns. Tesla returned 80% for the 12-month period, while Moderna gained 444% on its successful COVID-vaccine development.
We believe the global economy has the potential to deliver historic growth numbers. While fiscal policy seeks to pour more fuel on the fire, there is an output gap to be filled in important segments of the economy. Central bankers seem loath to reduce stimulus until inflation is clearly on a sustained upward trajectory and employment approaches prior peak levels. Vaccinations continue to ramp up in both developed and developing countries and global economic data outpaces estimates by close to a record margin, per the Citigroup Economic Surprise Index. Although we believe there will likely be some bumps in the road, we think the trend for the global economy and corporate earnings seems to indicate recovery and expansion.
6
Portfolio management reviews
Delaware Opportunity Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Opportunity Fund (Institutional Class shares) | 1-year return | +47.50% | ||
| Delaware Opportunity Fund (Class A shares) | 1-year return | +47.10% | ||
| Russell Midcap® Value Index (benchmark) | 1-year return | +42.40% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Opportunity Fund, please see the table on page 28.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 30 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks long-term capital growth.
Market review
Mid-cap value stocks experienced a strong run during the Fund’s fiscal year ended September 30, 2021. During the fiscal year, value companies outperformed growth companies across the US market capitalization spectrum as investors showed a preference for higher-quality companies in cyclical and economically sensitive industries that lagged during the first nine months of calendar year 2020. The performance disparity between value companies and growth companies was significant in mid-cap equities over the fiscal year, as the Russell Midcap Value Index returned 42.40%, outpacing the 30.45% return of the Russell Midcap® Growth Index.
The US Food and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for two COVID-19 vaccines in December 2020, resulting in a surge in the US equity markets. The US economy continued to improve during the fiscal year, aided by strengthening consumer confidence and spending. During the fiscal year, the Fed maintained its extremely accommodative monetary policy, keeping short-term rates near zero as inflation rose well above its 2% target and the unemployment rate declined from 7.8% in September 2020 to 4.8% in September 2021.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Opportunity Fund outperformed its benchmark, the Russell Midcap Value Index. The Fund’s Institutional Class shares gained 47.50%. The Fund’s Class A shares gained 47.10% at net asset value (NAV) and 38.64% at maximum offer price. These figures reflect reinvestment of all distributions. During the same period, the Fund’s benchmark, the Russell Midcap Value Index, gained 42.40%. For complete annualized performance of Delaware Opportunity Fund, please see the table on page 28.
Stock selection and sector positioning contributed to relative outperformance during the fiscal year. Stock selection and a relative overweight allocation contributed to the financial services sector. The Fund’s holdings in the industrials, REIT, and technology sectors outperformed those in the benchmark during the fiscal year. The Fund’s holdings in the basic industry, consumer discretionary, and transportation sectors advanced during the fiscal year but lagged the stronger returns of those sectors in the benchmark, which detracted from performance.
Shares of regional bank East West Bancorp Inc. outperformed for the fiscal year. East West Bancorp is one of the largest independent banks headquartered in California, operating over 120 locations in the US and in China. East West Bancorp reported multiple quarters of better-than-expected earnings results during the fiscal year. We maintained the Fund’s position in East West Bancorp as its loan growth is accelerating and its profitability is strong.
Quanta Services Inc. is a specialized contracting services company that delivers comprehensive infrastructure solutions for the utility, communications, pipeline, and energy industries. During the Fund’s fiscal year, Quanta outperformed as the company reported multiple quarters of better-than-expected financial results. Quanta has multi-year projects to modernize and harden utility infrastructure and renewable energy sources. We maintained the Fund’s position in Quanta as it has been able to increase its dividend and repurchase its stock and seems to have a healthy backlog of projects.
During the Fund’s fiscal year, shares of Newmont Corp. lagged the broader metals and mining industry. Newmont is the world’s leading gold company and a producer of copper, silver, zinc, and lead. We believed Newmont’s stock price performance would lag during periods of strong market performance, which is what we experienced during the Fund’s fiscal year. During this period, Newmont increased its dividend and repurchased its stock. This is consistent with the company’s framework to return incremental free cash flow to
7
Portfolio management reviews
Delaware Opportunity Fund
shareholders. We maintained the Fund’s position in Newmont as it generates significant free cash flow and remains disciplined with its use of capital.
Cable One Inc. is a video, broadband communications, and telephone provider serving residential and business customers in 24 states. Shares of Cable One outperformed during the first nine months of calendar year 2020 but traded slightly lower during the Fund’s fiscal year, which detracted. With more Americans staying home during the pandemic, Cable One added more broadband subscribers than expected. However, the pace of subscription growth slowed during the Fund’s fiscal year, while company’s financial results remained strong. We maintained the Fund’s position in Cable One as it is growing its free cash flow, pays a dividend, and has organic growth potential.
The Fund ended the fiscal year overweight the financial services, technology, basic industry, and transportation sectors. The Fund ended the fiscal year underweight the REIT, healthcare, consumer staples, and utilities sectors. Sector weightings were similar to those in the benchmark in the consumer discretionary, industrials, and energy sectors at fiscal year end.
Our team’s disciplined philosophy remains unchanged. We continue to focus on bottom-up stock selection and specifically on identifying companies that, in our view, trade at attractive valuations, generate strong free cash flow, and have the ability to implement shareholder-friendly policies through share buybacks, dividend increases, and debt reduction.
8
Portfolio management reviews
Delaware Global Equity Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Global Equity Fund (Institutional Class shares) | 1-year return | +12.54% | ||
| Delaware Global Equity Fund (Class A shares) | 1-year return | +12.11% | ||
| MSCI World Index (benchmark) (net) | 1-year return | +28.82% | ||
| MSCI World Index (benchmark) (gross) | 1-year return | +29.39% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Global Equity Fund, please see the table on page 31.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 33 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks long-term capital growth.
Economic developments and market performance
For the past 12 months, investors have watched the unravelling of the external shock of the COVID-19 pandemic, affecting every industry and every sector, both short-term and long-term. With one-third of the world’s population vaccinated against the coronavirus by the end of summer 2021, hope for the return of life as we knew it lifted stock markets and equity prices. As long as a vaccine-resistant virus does not emerge, it seems like humanity, in a collective effort with the excellent help of the global healthcare industry, has defied another pandemic.
Supported by the relief after surviving humanity’s latest brush with death, the Fund’s benchmark MSCI World Index (net) gained +28.82%. Based on the lessons learned and conclusions drawn, one focus of the stock market going forward is the weaker estimates for gross domestic product (GDP) growth in the US, where unemployment is still higher than it was pre-pandemic, despite labor shortages and wage increases in some pandemic-hit sectors. On the positive side, for equity markets, there is a chance that inflation will be short-lived, negating the need for the Federal Reserve to raise interest rates.
Brent crude prices, which, at the beginning of the pandemic, were below $20 US quadrupled to $80 by the end of third quarter 2021. At the same time, a shortage of electricity and record prices for coal hit China’s industrial heartland. This might cut short China’s GDP growth. Heading into the Northern Hemisphere’s winter season does not help energy prices either.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Global Equity Fund underperformed its benchmark, the MSCI World Index (net). The Fund’s Institutional Class shares gained 12.54%. The Fund’s Class A shares gained 12.11% at net asset value (NAV) and 5.62% at maximum offer price. These figures reflect reinvestment of all distributions. During the same period, the Fund’s benchmark gained 28.82%. For complete, annualized performance of Delaware Global Equity Fund, please see the table on page 31.
The portfolio management team invests with the mindset of long-term business owners. Our research is focused on how well we think a company can deploy its capital and redeploy retained earnings. Therefore, the Fund’s portfolio is built bottom-up (stock-by-stock) by selecting company stocks based on quantitative insights and qualitative assessments.
We use a multivariate risk model to analyze what we view as the various potential contributors to and detractors from the Fund’s performance against its benchmark. For the year ended September 2021, active country and region weights had a minor negative impact on performance. The Fund’s overweight in Switzerland and Germany and the Fund’s underweight in the US relative to the benchmark had a negative effect. The Fund’s overweight in France relative to its benchmark was positive.
The greatest impact on the Fund’s underperformance from the active sector allocation came from the Fund’s overweight in consumer staples. In addition, the Fund has no holdings in financials, real estate, energy, and utilities. The underweights to energy and financials relative to the benchmark had a negative impact on performance, as these were the two strongest-performing sectors for the past 12 months. No holdings in utilities had a positive allocation effect on the Fund’s performance.
9
Portfolio management reviews
Delaware Global Equity Fund
In terms of individual holdings, three of the largest contributors to active performance were French advertising agency conglomerate Publicis Group, offering a various range of services globally; Danish multinational pharmaceutical company Novo Nordisk A/S, specializing in producing insulin and treating obesity; and US pharma company Pfizer, upgrading its sales forecasts of the COVID-19 vaccine on several occasions, when efficacy studies of its effectiveness against the coronavirus exceeded market expectations.
Conversely, three of the largest detractors from performance during the year were Fresenius Medical Care AG, a German healthcare provider and global leader in treating dialysis patients who unfortunately are vulnerable to the coronavirus; Smith & Nephew, a British-based advanced medical devices and treatment provider with a hesitant customer group who have postponed medical care during the pandemic; and Lamb Weston, an American frozen potato and french fries producer that struggled with global COVID restrictions and rising transportation costs, especially affecting restaurants – maybe the company’s most important customers.
10
Portfolio management reviews
Delaware Covered Call Strategy Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Covered Call Strategy Fund (Institutional Class shares) | 1-year return | +20.40% | ||
| Delaware Covered Call Strategy Fund (Class A shares) | 1-year return | +20.11% | ||
| Cboe S&P 500 BuyWrite Index (benchmark) | 1-year return | +21.10% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Covered Call Strategy Fund, please see the table on page 34.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 36 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks long-term capital appreciation.
Ziegler Capital Management, LLC (ZCM), an investment advisor registered with the US Securities and Exchange Commission, is the sub-advisor to the Fund. As sub-advisor, ZCM is responsible for day-to-day management of the Fund’s assets. DMC, a series of MIMBT, has ultimate responsibility for all investment advisory services.
Market review
Equity markets rose to record highs for each successive calendar quarter during the fiscal year, with the S&P 500® Index producing a total return of 29.98% for the period. According to Bloomberg, S&P 500 Index trailing earnings also grew nearly 30% during the fiscal year and are expected to grow 9.1% in calendar year 2022. The resulting forward price-to-earnings (P/E) ratio of the market was an above-average 19.6.
Bond returns were disappointing for the fiscal year, with the Bloomberg US Aggregate Index returning -0.90%. Interest rates rose modestly but remained at significantly low levels. For example, the Bloomberg US Aggregate Index ended the period with a yield of 1.56%, which equates to a negative real yield as inflation has been consistently above 2%.
The fiscal year began with numerous uncertainties on the horizon, including a presidential election, COVID-related lockdowns, and highly anticipated initial reporting from COVID-19 vaccine trials. Considering these significant unknowns, implied volatility, as measured by the Cboe Volatility Index® (VIX®), began the fiscal year at 26.4% and rose to 40.3% before the election, well above the long-term average of 19.6%.
COVID-19 and the accompanying restrictions on economic activity have been the main impediments to economic growth since the pandemic began, and they persisted through the first half of the fiscal year. Consumer spending was most depressed in coronavirus-sensitive industries, including retail, food service, hospitality, recreation, and leisure. Large fiscal stimulus alongside economic restrictions essentially resulted in forced savings, as households were limited in their spending on a multitude of items. Fortunately, the vaccine trials were successful, and a rapid rollout of the vaccine ensued during late winter and early spring. As vaccination rates increased, restrictions were lifted, and consumer spending rebounded with gross domestic product (GDP) growing at a near 6% annualized rate over the past six months.
Despite rising inflation metrics in recent quarters, inflation expectations have remained well-anchored near long-term average levels. The US Consumer Price Index (CPI) is expected to return to more typical levels later next year as the economy normalizes, supply chain constraints abate, labor supply increases, and COVID-19 cases decline with higher global vaccination rates.
Source: Bloomberg.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Covered Call Strategy Fund underperformed its benchmark, the Cboe S&P 500 BuyWrite Index. The Fund’s Institutional Class shares gained 20.40%. The Fund’s Class A shares gained 20.11% at net asset value and 13.20% at maximum offer price. Both figures reflect all distributions reinvested. For the same period, the Fund’s benchmark gained 21.10%. For complete, annualized performance of Delaware Covered Call Strategy Fund, please see the table on page 34.
The Fund captured 72% of the return of the S&P 500 Index, an above-average upside capture ratio during a notably strong period of equity-market outperformance. The Fund’s outperformance versus the benchmark was due entirely to outperformance from call options, while the stocks in the Fund lagged the stocks in the benchmark.
11
Portfolio management reviews
Delaware Covered Call Strategy Fund
The actively managed, single-stock call options in the Fund outperformed the index call options in the benchmark by 444 basis points during the fiscal year (a basis point equals one hundredth of a percentage point). Since the Fund’s inception in 2016, the call options in the Fund have outperformed the benchmark’s call options by 405 basis points per year. There are three main reasons for the Fund’s consistent call-option outperformance. First, actively managing the call options allows us to analyze the entire option chain and select what we believe are the most attractive call options for each individual stock in the portfolio, while the rules-based benchmark is limited to the same at-the-money index option every month. Second, the Fund’s active option strategy takes advantage of high implied volatility levels. For example, the elevated level of implied volatility, particularly during the first half of the fiscal year, allowed us to write longer-term options to “lock in” high-call premiums, which gradually decayed during subsequent months. In contrast, the Fund’s rules-based benchmark is limited to one-month options every month and, as a result, it cannot sell longer-term options during volatility spikes. Third, the Fund’s single-stock call options tend to provide higher call premiums than the benchmark’s index options – a consistent feature of the Fund versus the benchmark.
The stocks in the Fund performed in line with those in the benchmark during the first half of the fiscal year. During that period, the Fund owned a variety of COVID-19 reopening and recovery stocks that performed strongly. However, during the spring, the Fund purchased energy and financial stocks. Despite continued economic growth and rising oil prices, these energy and financial stocks detracted from returns. As a result, the Fund’s stocks underperformed for the second half of the fiscal year. For instance, large-cap growth stocks returned 14.02% for the second half of the fiscal year, while large-cap value stocks returned only 4.10%. Both software and hardware companies in the portfolio outperformed, particularly the semiconductor companies, as global demand for these products has continued to remain strong amid tight supply. The Fund’s holdings of aerospace and defense companies underperformed the benchmark. An underweight to the healthcare sector, owing to the potential for increased government regulation, contributed to returns, as this sector lagged the market during the fiscal year.
Stock selection detracted from performance in communication services. Stock selection made a large positive contribution in consumer discretionary, as we continue to believe consumers are generally in strong financial health, with a still large amount of pent-up savings and plentiful job opportunities.
Overall, we think implied volatility for the market has remained attractive, and call premiums are generally above average. We will continue to closely monitor implied volatility opportunities, which we think could have the potential to add further excess returns versus the benchmark’s rules-based, index options. We continue to believe the Fund’s portfolio of stocks offers significant risk-reward potential going forward, especially when combined with actively managed, single-stock call premiums.
12
Portfolio management reviews
Delaware Hedged U.S. Equity Opportunities Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Hedged U.S. Equity Opportunities Fund (Institutional Class shares) | 1-year return | +14.79% | ||
| Delaware Hedged U.S. Equity Opportunities Fund (Class A shares) | 1-year return | +14.35% | ||
| Russell 3000® Index (primary benchmark) | 1-year return | +31.88% | ||
| 70% Russell 3000 Index / 30% ICE BofA US 3-Month Treasury Bill Index (secondary benchmark) | 1-year return | +23.06% | ||
| ICE BofA US 3-Month Treasury Bill Index (secondary benchmark) | 1-year return | +0.07% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Hedged U.S. Equity Opportunities Fund, please see the table on page 38.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 40 for a description of the indices. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks total return and, secondarily, capital preservation.
Wellington Management Company LLP (Wellington Management), a US-registered investment advisor, is the sub-advisor to the Fund. As sub-advisor, Wellington Management is responsible for day-to-day management of the Fund’s assets. Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), has ultimate responsibility for all investment advisory services.
Market review
US equity markets rose during the 12-month period ended September 30, 2021. Throughout the period, a supportive macroeconomic backdrop underpinned equity-market strength. Joe Biden was elected president after a closely contested election, removing a key element of investors’ uncertainty. In the fourth quarter of 2020 corporate earnings were better than expected, the Federal Reserve continued to provide substantial monetary support, and a long-awaited new stimulus package was approved.
On the pandemic front, optimism became reality as several COVID-19 vaccines were approved in the first half of 2021. The rapid initial uptake of the vaccines enabled economic growth to accelerate as the reopening of many businesses contributed to equity-market strength. However, inflation increased sharply as robust demand for goods and services and significant global supply-chain disruptions drove consumer and producer prices significantly higher.
Amid this changing inflation and growth backdrop, the Fed grew increasingly hawkish in 2021. In the third quarter of 2021, anxiety about rising inflation, political gridlock in Washington, and Fed policy normalization weighed against robust corporate earnings and continued strong demand for goods and services. The tension between anxiety and optimism coincided with rotations between value and growth stocks. Growth stocks outperformed their value counterparts in July and August. At the end of September, however, surging Treasury yields sparked a sharp selloff in shares of large technology companies that triggered a rotation into value stocks.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Hedged U.S. Equity Opportunities Fund underperformed its primary benchmark, the Russell 3000 Index, and its secondary benchmark, a blend of 70% Russell 3000 Index and 30% ICE BofA US 3-Month Treasury Bill Index. The Fund outperformed its other secondary benchmark, the ICE BofA US 3-Month Treasury Bill Index. The Fund’s Institutional Class shares gained 14.79%. The Fund’s Class A shares gained 14.35% at net asset value and 7.76% at maximum offer price (both figures reflect all distributions reinvested). For the same period, the Russell 3000 Index gained 31.88%. The blend of 70% Russell 3000 Index / 30% ICE BofA US 3-Month Treasury Bill Index gained 23.06%, and the ICE BofA US 3-Month Treasury Bill Index gained 0.07%. For complete, annualized performance of Delaware Hedged U.S. Equity Opportunities Fund, please see the table on page 38.
While the Fund posted positive absolute returns, it underperformed its primary benchmark, the Russell 3000 Index, for the fiscal year. The primary driver of underperformance was weak stock selection within the industrials, information technology, and consumer discretionary sectors. Sector allocation, a residual of the underlying managers’ bottom-up stock selection process – we note that as the lead portfolio managers, we allocate to other portfolio managers at Wellington to manage the active equity portion of the Fund – detracted from performance, driven by our underweight allocations to
13
Portfolio management reviews
Delaware Hedged U.S. Equity Opportunities Fund
energy and information technology. The Fund’s overweight allocation to financials partially offset this.
Our decision not to hold consumer discretionary company Tesla Inc. was the largest relative detractor from performance. Shares of the electric-vehicle manufacturer rose after the company was added to the S&P 500 Index, triggering forced buying by index-tracking investors and mutual funds. Furthermore, positive investor and consumer sentiment for electric vehicles remained a strong tailwind for the industry.
The Fund’s overweight positioning in healthcare company Novartis AG detracted from results. Shares declined after the company reported 2020 results and 2021 guidance. Reduced patient traffic in 2020, a result of the pandemic, led to a decline in the company’s dermatology and oncology segments. Shares further declined following second-quarter results showing that the oncology segment was still experiencing patient volumes below pre-COVID levels. Key drug Sandoz also faced headwinds and was a drag on earnings. The company also announced it discontinued a study of CFZ533 in kidney transplant patients because of lack of demonstrated efficacy. We continued to hold the name in the Fund as of fiscal year end.
In the financials sector, the Fund’s overweight position in The Charles Schwab Corp. was the largest relative contributor to performance during the fiscal year. The stock price rose after the company posted better-than-expected fourth-quarter 2020 results, with record client engagement across all channels. First- and second-quarter 2021 results were also strong as the company again saw record client engagement. The stock performed well as rates moved higher and investors sought exposure to “reflation trades.” The company continued to focus on making improvements and structural changes in monetization, pricing, and industry structure which, we believe, should help the stock continue to outperform. The Fund continued to hold Charles Schwab as of fiscal year end.
In the consumer discretionary sector, the Fund’s underweight position in Amazon.com Inc. contributed to results. Shares of the ecommerce giant rose early in the 12-month period following strong third-quarter 2020 results that beat analysts’ expectations, and then fell in the early part of 2021, after the company announced that founder Jeff Bezos would step down as CEO to focus on new products and initiatives. The stock price remained under pressure, despite the company’s reporting second-quarter earnings that exceeded expectations. Management stated that sales growth was expected to slow over the next several quarters. We maintained a position in Amazon.com as of the end of the fiscal year.
The Fund’s hedging strategy detracted from results during the fiscal year. The beta hedge, which is designed to reduce the Fund’s equity exposure by selling futures on US indices, detracted from results as US markets rose. The Fund’s tail risk management strategy, designed to mitigate capital losses in periods when equities experience a sharp decline, also detracted from results as markets rallied.
We believe volatility is likely to continue as investors balance long-term opportunities and nearer-term risks. While company earnings have improved relative to 2020, risks continue to evolve, including the potential economic ramifications of the rapidly spreading COVID-19 Delta variant, the approaching government debt ceiling in the US, and the potential impact on company fundamentals as central banks begin rolling back stimulus programs. We remain vigilant in managing risks in the Fund’s portfolio and seek to deliver performance that is driven by security selection.
Looking across markets, we are mindful of the ever-evolving risks of different equity factors and seek to create a portfolio of differentiated investment styles and philosophies. We maintain exposure to cyclical areas of the market through allocations to managers who look to invest in undervalued companies with solid fundamentals, and we complement these exposures with allocations to managers who seek to invest in attractive companies with favorable growth prospects. We balance these exposures with allocations to managers who focus on high-quality stable businesses that we believe may outperform in the event of an unexpected shock to markets. We combine these allocations with our hedging strategy, as we strive to deliver a robust and consistent risk profile.
The Fund used the following derivatives during the fiscal year:
| Instrument | Ending allocation | Performance effect |
| Futures | -17% (notional exposure) | Negative, as markets rose |
| Options | -6% (notional exposure) | Negative, as markets rose |
| Foreign currency exchange forwards | -3% (market value) | Neutral |
14
Portfolio management reviews
Delaware Premium Income Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Premium Income Fund (Institutional Class shares) | 1-year return | +12.27% | ||
| Delaware Premium Income Fund (Class A shares) | 1-year return | +11.96% | ||
| Cboe S&P 500 BuyWrite Index (benchmark) | 1-year return | +21.10% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Premium Income Fund, please see the table on page 42.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 44 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks to generate income.
Ziegler Capital Management, LLC (ZCM), an investment adviser registered with the US Securities and Exchange Commission, is the sub-adviser to the Fund. As sub-adviser, ZCM is responsible for day-to-day management of the Fund’s assets. DMC, a series of MIMBT, has ultimate responsibility for all investment advisory services.
Market review
Equity markets rose to record highs for each successive calendar quarter during the past fiscal year, with the S&P 500® Index returning 29.98% for the period. According to Bloomberg, S&P 500 Index trailing earnings also grew nearly 30% during the fiscal year and are expected to grow 9.1% in calendar year 2022. The resulting forward price-to-earnings (P/E) ratio of the market is an above-average 19.6.
Bond returns were disappointing for the fiscal year, with the Bloomberg US Aggregate Index returning -0.90% for the period. Interest rates rose modestly but remained at significantly low levels. For example, the Bloomberg US Aggregate Index ended the fiscal year with a yield of 1.56%, which equates to a negative real yield as inflation has been consistently above 2%.
The fiscal year began with numerous uncertainties on the horizon, including a presidential election, COVID-related lockdowns, and highly anticipated initial reporting from nascent COVID-19 vaccine trials. Considering these significant unknowns, implied volatility, as measured by the Cboe Volatility Index® (VIX®), began the fiscal year at 26.4% and rose to 40.3% before the election, well above the long-term average of 19.6%.
COVID-19 and the accompanying restrictions on economic activity have been the main impediments to economic growth since the pandemic began, and they persisted through the first half of the fiscal year. Consumer spending was most depressed in coronavirus-sensitive industries, including retail, food service, hospitality, recreation, and leisure. Large fiscal stimulus, alongside economic restrictions, essentially resulted in forced savings, as households were limited in their spending on a multitude of items. Fortunately, the vaccine trials were successful, and a rapid rollout of the vaccine ensued during late winter and early spring. As vaccination rates increased, restrictions were lifted and consumer spending rebounded with gross domestic product (GDP) growing at a near 6% annualized rate over the past six months.
Despite rising inflation metrics in recent quarters, inflation expectations have remained well-anchored near long-term average levels, and it appears that investors believe many of the factors currently causing higher inflation are transitory. The US Consumer Price Index (CPI) is expected to return to more typical levels later next year as the economy normalizes, supply chain constraints abate, labor supply increases, and COVID-19 cases decline with higher global vaccination rates.
Source: Bloomberg.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Premium Income Fund underperformed its benchmark, the Cboe S&P 500 BuyWrite Index. The Fund’s Institutional Class shares gained 12.27%. The Fund’s Class A shares gained 11.96% at net asset value and 5.54% at maximum offer price. Both figures reflect all distributions reinvested. For the same period, the benchmark gained 21.10%. For complete, annualized performance of Delaware Premium Income Fund, please see the table on page 42.
The Fund returned 13.47%, gross of fees, for the fiscal year, producing an above-average upside capture ratio of 45% relative to the S&P 500 Index during a strong period of equity-market outperformance. The Fund produced 40% less risk than its benchmark and 61% less risk than the S&P 500 Index for the fiscal
15
Portfolio management reviews
Delaware Premium Income Fund
year as measured by standard deviation. We feel the risk-adjusted return is a more accurate measure to compare performance relative to standard market indices. For the fiscal year, the Fund’s risk-adjusted return outperformed all three major indices: the S&P 500 Index, the Cboe S&P 500 BuyWrite Index, and the Bloomberg US Aggregate Index. The outperformance was due to both the risk-dampening characteristics of the in-the-money call options, as well as the returns from call option time decay and dividends.
The Fund outperformed the Bloomberg US Aggregate Index by a wide margin during the fiscal year, as the index posted a negative return of -0.90% during the period. The 10-year Treasury bond began the fiscal year with a yield of 0.69% and ended the fiscal year at 1.48%, which is still well below the level of inflation expected over the next ten years. Writer James Grant of Grant’s Interest Rate Observer famously described low-yielding bonds as “return-free risk.” If inflation or interest rates continue to rise, bonds may continue to suffer losses as they have over the past year. Unlike bonds, the Fund’s returns historically have not been negatively affected by higher interest rates. Considering today’s continued low interest rate environment, we believe Delaware Premium Income Fund may be an attractive, non-correlating strategy to complement investors’ fixed income portfolios.
The high levels of implied volatility throughout most of the fiscal year created above-average call premiums within the Fund. This provided a substantial tailwind to returns as the above-average time value in these call options gradually decayed during subsequent months. While the Fund’s absolute return on the call options underperformed the call options in the benchmark, we think this is not an apples-to-apples comparison because the Fund is designed to have less equity-market exposure by writing deep in-the-money call options, and the benchmark writes at-the-money call options. During such a strong period for equity markets, at-the-money call options would naturally outperform in-the-money call options because they offer the potential for more upside-capture. However, on a risk-adjusted basis, the call options in the Fund outperformed the call options in the benchmark.
Value-leaning stocks have been the foundation of the Fund’s investment strategy. This value tilt in the portfolio contributed to performance during the fiscal year, as value stocks outperformed the market. For example, the Fund’s overweight positions in energy and financials were additive, as these sectors were the leading contributors during the first half of the fiscal year, the result of positive vaccine news and the gradual reopening of the economy. An overweight to consumer staples detracted from returns as this relatively stable sector lagged the market during the fiscal year’s strong equity-market rally. Stock selection was positive in consumer discretionary and information technology but was negative in industrials as the main defense stock in the Fund underperformed. The semi-conductor holdings in the Fund continued to outperform, as global demand for these products has continued to remain strong amid tight supply.
Given the current environment of historically low interest rates, attractive call premiums, and compelling valuations of the value-oriented stocks in the Fund, we believe the Fund is well-positioned relative to bonds at the end of the fiscal year and can serve as a low-volatility component for an equity-overweighted position. As we manage the active option writing strategy of the Fund, we will continue to closely monitor for implied volatility opportunities and downside protection amounts that we think could help enhance the risk-adjusted return of the Fund relative to our benchmarks. We continue to believe the stocks in the Fund offer attractive risk-reward potential going forward, especially when combined with deep in-the-money call options that can help stabilize returns by offering opportunities for both downside protection and a return component.
16
Portfolio management reviews
Delaware Total Return Fund
October 12, 2021 (Unaudited)
| Performance preview (for the year ended September 30, 2021) | ||||
| Delaware Total Return Fund (Institutional Class shares) | 1-year return | +22.06% | ||
| Delaware Total Return Fund (Class A shares) | 1-year return | +21.77% | ||
| S&P 500 Index® (primary benchmark) | 1-year return | +30.00% | ||
| 60% S&P 500 Index / 40% Bloomberg US Aggregate Index (secondary benchmark) | 1-year return | +16.91% | ||
| Bloomberg US Aggregate Index (secondary benchmark) | 1-year return | -0.90% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Total Return Fund, please see the table on page 46.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 48 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks to provide sustainable current income with potential for capital appreciation with moderate investment risk.
Market review
A risk-on environment characterized the Fund’s fiscal year. Higher-risk assets continued to perform strongly on the back of the recovery story after the COVID-19-related crash. Although there were short setbacks – mainly due to further COVID waves – the Federal Reserve’s continued loose monetary policy coupled with extremely expansive fiscal policy led equities to new highs. High yield corporates also recorded very strong performance in the fiscal year, but commodity prices developed even more strongly – with the exception of gold. On the other hand, due to rising yields, government bonds recorded losses, especially in the US and the UK, but also in the European Union.
The change in power to the Democrats in the White House and Congress made further stimulus packages possible in 2021. Rising demand led to supply bottlenecks and sharply rising energy prices. This price pressure manifested itself in the highest inflation rates in years and led to discussions about tapering the central bank’s bond purchases. Accordingly, yields also rose significantly, and in September, the Fed officially spoke of the possibility of starting tapering in 2021.
China also caused a lot of turbulence over the summer, with tough government regulatory measures against its own technology sector, the collapse of the real estate giant Evergrande, and electricity shortages in the country leading to restrictions.
After seven positive months, stock markets recorded their first monthly loss in September in the face of various uncertainties, including the US debt ceiling debate. However, a government shutdown was avoided for the present with a last-minute decision to extend government funding for two months.
Within the Fund
For the fiscal year ended September 30, 2021, Delaware Total Return Fund underperformed its primary benchmark, the S&P 500 Index. With respect to its secondary benchmarks, the Fund outperformed both – a blend of 60% S&P 500 Index and 40% Bloomberg US Aggregate Index and the Bloomberg US Aggregate Index. The Fund’s Institutional Class shares rose 22.06%. The Fund’s Class A shares gained 21.77% at net asset value and 14.74% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the S&P 500 Index rose 30.00%. The blend of 60% S&P 500 Index and 40% Bloomberg US Aggregate Index gained 16.91% while the Bloomberg US Aggregate Index fell 0.90%. For complete annualized performance of Delaware Total Return Fund, please see the table on page 46.
The Fund’s outperformance for the fiscal year mainly stemmed from equity exposure that first was largely allocated to value equities, but over the course of the year shifted more and more toward quality and income stocks after value had performed very strongly. Although US large-cap value outperformed US large-cap core over the 12-month period, the reallocation toward quality and income proved to be very beneficial for the Fund, as the sector outperformed value stocks strongly from March 2021 on. Accordingly, profits were taken from value at the right time. Additionally, the Fund’s allocation to international and real estate equities contributed to performance. While international equities lagged US performance, US REITs strongly outperformed.
Another important performance contributor were convertible bonds, which delivered by far the highest performance of the bond sleeves. To take profits here as well, their weight was reduced in the last third of the Fund’s fiscal year. The same was true for high yield bonds,
17
Portfolio management reviews
Delaware Total Return Fund
which also showed decent gains, albeit at a much slower pace than equities and convertibles. The freed-up funds were partly shifted to investment grade corporates and partly to the opportunistic sleeve. While the allocation to investment grade produced a neutral result, the increase of the previously strongly performing opportunistic sleeve was detrimental as the sleeve had its best performance before the shift. However, over the course of the full 12 months, it still contributed substantially to the Fund’s performance.
The Fund’s strategic policy weights reflect a commitment to seeking diversification across geographies and asset classes. As part of the oversight process, we periodically analyze the sources of the Fund’s active performance. For the fiscal year, the Fund’s active positioning with respect to the strategic policy weights of different asset classes contributed to performance.
We periodically examine the contribution of derivatives to the Fund’s performance. Based on the available information, we believe the Fund’s combination of futures, options, swaps, and currency positions had only a limited effect on performance during the fiscal year.
At the end of the Fund’s fiscal year, we sought to continue to deliver the potential benefits of diversification while actively managing risk. With these two principles in mind, the Fund seeks to deliver returns that are derived from tactical asset allocation decisions as well as from active management of individual asset classes and investment styles.
We manage the Fund based on the assumption that investors should keep a global perspective when evaluating potential investment opportunities. We therefore continue to include investment possibilities around the globe within the Fund.
We believe a thoughtful, active management approach is needed, given today’s increased political, economic, and market uncertainty. The Multi Asset team’s decisions are taken collectively, and the weightings assigned to individual asset classes reflect our unique asset class ranking methodology, highlighted by our distinctive pairwise approach, which includes assessment of one asset class versus another on a head-to-head basis. Vigilant and continuous assessment of the current market environment may offer opportunities to take advantage of market dislocations and has the potential to achieve what we view as attractive risk-adjusted returns through an active focus on portfolio risk and diversification.
18
Performance summaries
Delaware Equity Income Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||||
| 1 year | 5 year | 10 year | Lifetime | |||||||
| Class A (Est. February 22, 1993) | ||||||||||
| Excluding sales charge | +30.49% | +8.77% | +11.02% | — | ||||||
| Including sales charge | +23.00% | +7.50% | +10.36% | — | ||||||
| Institutional Class (Est. April 1, 2013) | ||||||||||
| Excluding sales charge | +30.91% | +9.07% | — | +9.12% | ||||||
| Including sales charge | +30.91% | +9.07% | — | +9.12% | ||||||
| Class R6 (Est. April 1, 2013) | ||||||||||
| Excluding sales charge | +30.91% | +9.18% | — | +9.23% | ||||||
| Including sales charge | +30.91% | +9.18% | — | +9.23% | ||||||
| Russell 1000 Value Index | +35.01% | +10.94% | — | +10.74% | * | |||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 20. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
Risk is increased in a concentrated portfolio since it holds a limited number of securities with each investment having a greater effect on the overall performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
19
Performance summaries
Delaware Equity Income Fund
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.17%, 0.85%, and 0.81% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Prior to January 27, 2021, the expense waiver was 1.17% of the Fund’s average daily net assets for Class A shares. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.16% | 0.94% | 0.88% | |||
| Net expenses (including fee waivers, if any) | 1.12% | 0.85% | 0.81% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
Performance of a $10,000 investment1
Class A shares
Average annual total returns from September 30, 2011 through September 30, 2021
| For period beginning September 30, 2011 through September 30, 2021 | Starting value | Ending value | |||||||||
 | Russell 1000 Value Index | $ | 10,000 | $ | 35,522 | ||||||
 | Delaware Equity Income Fund — Class A shares | $ | 9,425 | $ | 26,792 | ||||||
20
Institutional Class shares
Average annual total returns from April 1, 2013 (Fund’s inception) through September 30, 2021
| For period beginning April 1, 2013 through September 30, 2021 | Starting value | Ending value | |||||||||
| Russell 1000 Value Index | $ | 10,000 | $ | 24,735 | ||||||
| Delaware Equity Income Fund — Institutional Class shares | $ | 10,000 | $ | 21,000 | ||||||
| 1 | The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on September 30, 2011, and includes the effect of a 5.75% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in Russell 1000 Value Index as of September 30, 2011. |
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on April 1, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in Russell 1000 Value Index as of April 1, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 20. Please note additional details on pages 19 through 21.
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FIUTX | 24611D409 | ||
| Institutional Class | FIUUX | 24611D508 | ||
| Class R6 | FIUVX | 24611D607 |
The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
21
Performance summaries
Delaware Growth and Income Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||||||
| 1 year | 5 year | 10 year | Lifetime | |||||||||
| Class A (Est. October 4, 1993) | ||||||||||||
| Excluding sales charge | +30.89 | % | +9.10 | % | +11.93 | % | — | |||||
| Including sales charge | +23.35 | % | +7.82 | % | +11.27 | % | — | |||||
| Institutional Class (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +31.19 | % | +9.43 | % | — | +9.44 | % | |||||
| Including sales charge | +31.19 | % | +9.43 | % | — | +9.44 | % | |||||
| Class R6 (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +31.25 | % | +9.50 | % | — | +9.50 | % | |||||
| Including sales charge | +31.25 | % | +9.50 | % | — | +9.50 | % | |||||
| Russell 1000 Value Index | +35.01 | % | +10.94 | % | — | +10.74 | %* | |||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 23. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
Risk is increased in a concentrated portfolio since it holds a limited number of securities with each investment having a greater effect on the overall performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
22
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.11%, 0.82%, and 0.75% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Prior to January 27, 2021, the expense waiver was 1.11% of the Fund’s average daily net assets for Class A shares. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.10% | 0.86% | 0.81% | |||
| Net expenses (including fee waivers, if any) | 1.08% | 0.82% | 0.75% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
Performance of a $10,000 investment1
Class A shares
Average annual total returns from September 30, 2011 through September 30, 2021
| For period beginning September 30, 2011 through September 30, 2021 | Starting value | Ending value | |||||||||
| Russell 1000 Value Index | $ | 10,000 | $ | 35,522 | ||||||
| Delaware Growth and Income Fund — Class A shares | $ | 9,425 | $ | 29,091 | ||||||
23
Performance summaries
Delaware Growth and Income Fund
Institutional Class shares
Average annual total returns from April 1, 2013 (Fund’s inception) through September 30, 2021
| For period beginning April 1, 2013 through September 30, 2021 | Starting value | Ending value | |||
| Russell 1000 Value Index | $10,000 | $24,735 | ||
| Delaware Growth and Income Fund — Institutional Class shares | $10,000 | $21,522 | ||
| 1 | The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on September 30, 2011, and includes the effect of a 5.75% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in Russell 1000 Value Index as of September 30, 2011. |
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on April 1, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in Russell 1000 Value Index as of April 1, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 23. Please note additional details on pages 22 through 24.
The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FGINX | 24611D870 | ||
| Institutional Class | FGIPX | 24611D862 | ||
| Class R6 | FGIQX | 24611D854 |
24
Performance summaries
Delaware Growth Equity Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||||||
| 1 year | 5 year | 10 year | Lifetime | |||||||||
| Class A (Est. October 25, 2000) | ||||||||||||
| Excluding sales charge | +41.67 | % | +20.66 | % | +17.52 | % | — | |||||
| Including sales charge | +33.56 | % | +19.23 | % | +16.84 | % | — | |||||
| Institutional Class (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +41.98 | % | +21.03 | % | — | +17.20 | % | |||||
| Including sales charge | +41.98 | % | +21.03 | % | — | +17.20 | % | |||||
| Class R6 (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +42.12 | % | +21.11 | % | — | +17.31 | % | |||||
| Including sales charge | +42.12 | % | +21.11 | % | — | +17.31 | % | |||||
| Russell 1000 Growth Index | +27.32 | % | +22.84 | % | — | +18.77 | %* | |||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 26. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.
Because the Fund expects to hold a concentrated portfolio of limited number of securities, the Fund’s risk is increased because each investment has a greater effect on the Fund’s overall performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
25
Performance summaries
Delaware Growth Equity Fund
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.17%, 0.86%, and 0.79% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Prior to January 27, 2021, the expense waiver was 1.17% and 0.86% of the Fund’s average daily net assets for Class A shares and Institutional Class shares, respectively. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.14% | 0.89% | 0.83% | |||
| Net expenses (including fee waivers, if any) | 1.14% | 0.86% | 0.79% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
Performance of a $10,000 investment1
Class A shares
Average annual total returns from September 30, 2011 through September 30, 2021
| For period beginning September 30, 2011 through September 30, 2021 | Starting value |
| Ending value | ||||||||
| Russell 1000 Growth Index | $ | 10,000 | $ | 60,261 | ||||||
| Delaware Growth Equity Fund — Class A shares | $ | 9,425 | $ | 47,406 | ||||||
26
Institutional Class shares
Average annual total returns from April 1, 2013 (Fund’s inception) through September 30, 2021
| For period beginning April 1, 2013 through September 30, 2021 | Starting value | Ending value | |||
| Russell 1000 Growth Index | $10,000 | $43,441 | ||
| Delaware Growth Equity Fund — Institutional Class shares | $10,000 | $38,533 | ||
| 1 | The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on September 30, 2011, and includes the effect of a 5.75% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Russell 1000 Growth Index as of September 30, 2011. |
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on April 1, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Russell 1000 Growth Index as of April 1, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 26. Please note additional details on pages 25 through 27.
The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Citigroup® Economic Surprise Index, mentioned on pages 5 and 6, is a 3-month rolling measure of actual economic surprises relative to market expectations. A positive reading means that data have been stronger than expected, while a negative reading means that economic data have been weaker than expected.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FICGX | 24611D714 | ||
| Institutional Class | FICHX | 24611D698 | ||
| Class R6 | FICIX | 24611D680 |
27
Performance summaries
Delaware Opportunity Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||||||
| 1 year | 5 year | 10 year | Lifetime | |||||||||
| Class A (Est. August 24, 1992) | ||||||||||||
| Excluding sales charge | +47.10 | % | +9.88 | % | +12.73 | % | — | |||||
| Including sales charge | +38.64 | % | +8.58 | % | +12.07 | % | — | |||||
| Institutional Class (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +47.50 | % | +10.22 | % | — | +10.24 | % | |||||
| Including sales charge | +47.50 | % | +10.22 | % | — | +10.24 | % | |||||
| Class R6 (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +47.71 | % | +10.34 | % | — | +10.39 | % | |||||
| Including sales charge | +47.71 | % | +10.34 | % | — | +10.39 | % | |||||
| Russell Midcap Value Index | +42.40 | % | +10.59 | % | +13.93 | % | +10.86 | %* | ||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 29. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.
An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
28
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.21%, 0.90%, and 0.78% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.24% | 1.04% | 0.95% | |||
| Net expenses (including fee waivers, if any) | 1.21% | 0.90% | 0.78% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report is from January 28, 2021 through January 31, 2022. |
Performance of a $10,000 investment1
Class A shares
Average annual total returns from September 30, 2011 through September 30, 2021
| For period beginning September 30, 2011 through September 30, 2021 | Starting value | Ending value | |||||||||
| Russell Midcap Value Index | $ | 10,000 | $ | 36,857 | ||||||
| Delaware Opportunity Fund — Class A shares | $ | 9,425 | $ | 31,241 | ||||||
29
Performance summaries
Delaware Opportunity Fund
Institutional Class shares
Average annual total returns from April 1, 2013 (Fund’s inception) through September 30, 2021
| For period beginning April 1, 2013 through September 30, 2021 | Starting value | Ending value | |||
| Russell Midcap Value Index | $10,000 | $25,116 | ||
| Delaware Opportunity Fund — Institutional Class shares | $10,000 | $22,896 | ||
| 1 | The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on September 30, 2011, and includes the effect of a 5.75% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in Russell Midcap Value Index as of September 30, 2011. |
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on April 1, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in Russell Midcap Value Index as of April 1, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 29. Please note additional details on pages 28 through 30.
The Russell Midcap Value Index measures the performance of the mid-cap value segment of the US equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values.
The Russell Midcap Growth Index, mentioned on page 7, measures the performance of the mid-cap growth segment of the US equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FIUSX | 24611D771 | ||
| Institutional Class | FIVUX | 24611D763 | ||
| Class R6 | FIVVX | 24611D755 |
30
Performance summaries
Delaware Global Equity Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||||||
| 1 year | 5 year | 10 year | Lifetime | |||||||||
| Class A (Est. November 16, 1981) | ||||||||||||
| Excluding sales charge | +12.11 | % | +8.43 | % | +9.89 | % | — | |||||
| Including sales charge | +5.62 | % | +7.14 | % | +9.24 | % | — | |||||
| Institutional Class (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +12.54 | % | +8.80 | % | — | +8.47 | % | |||||
| Including sales charge | +12.54 | % | +8.80 | % | — | +8.47 | % | |||||
| Class R6 (Est. April 1, 2013) | ||||||||||||
| Excluding sales charge | +12.61 | % | +8.86 | % | — | +8.57 | % | |||||
| Including sales charge | +12.61 | % | +8.86 | % | — | +8.57 | % | |||||
| MSCI World Index (net) | +28.82 | % | +13.74 | % | — | +11.16 | %* | |||||
| MSCI World Index (gross) | +29.39 | % | +14.34 | % | — | +11.77 | %* | |||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 32. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.
The Fund may allocate more of their net assets to investments in single securities than “diversified” funds.
Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
31
Performance summaries
Delaware Global Equity Fund
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.41%, 1.07%, and 1.02% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Prior to January 27, 2021, the expense waiver was 1.41% of the Fund’s average daily net assets for Class A shares. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.42% | 1.18% | 1.13% | |||
| Net expenses (including fee waivers, if any) | 1.37% | 1.07% | 1.02% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
Performance of a $10,000 investment1
Class A shares
Average annual total returns from September 30, 2011 through September 30, 2021
| For period beginning September 30, 2011 through September 30, 2021 | Starting value | Ending value | |||||||||
 | MSCI World Index (gross) | $ | 10,000 | $ | 34,860 | ||||||
| MSCI World Index (net) | $ | 10,000 | $ | 32,996 | ||||||
| Delaware Global Equity Fund — Class A shares | $ | 9,425 | $ | 24,200 | ||||||
32
Institutional Class shares
Average annual total returns from April 1, 2013 (Fund’s inception) through September 30, 2021
| For period beginning April 1,2013 through September 30, 2021 | Starting value | Ending value | |||||||||
| MSCI World Index (gross) | $ | 10,000 | $ | 24,939 | ||||||
| MSCI World Index (net) | $ | 10,000 | $ | 23,827 | ||||||
| Delaware Global Equity Fund — Institutional Class shares | $ | 10,000 | $ | 19,962 | ||||||
| 1 | The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on September 30, 2011, and includes the effect of a 5.75% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the MSCI World Index as of September 30, 2011. |
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on April 1, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the MSCI World Index as of April 1, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 32. Please note additional details on pages 31 through 33.
| Nasdaq symbols | CUSIPs | |||
| Class A | FIISX | 24611D706 | ||
| Institutional Class | FIITX | 24611D805 | ||
| Class R6 | FIIUX | 24611D888 |
The MSCI World Index represents large- and mid-cap stocks across 23 developed market countries worldwide. The index covers approximately 85% of the free float-adjusted market capitalization in each country. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate. Index “gross” return approximates the maximum possible dividend reinvestment.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
33
Performance summaries
Delaware Covered Call Strategy Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | ||||||
| 1 year | 3 year | 5 year | Lifetime | ||||
| Class A (Est. April 1, 2016) | |||||||
| Excluding sales charge | +20.11% | +4.55% | +5.91% | +6.10% | |||
| Including sales charge | +13.20% | +2.52% | +4.67% | +4.96% | |||
| Institutional Class (Est. April 1, 2016) | |||||||
| Excluding sales charge | +20.40% | +4.81% | +6.21% | +6.40% | |||
| Including sales charge | +20.40% | +4.81% | +6.21% | +6.40% | |||
| Class R6 (Est. April 1, 2016) | |||||||
| Excluding sales charge | +20.57% | +5.01% | +6.38% | +6.58% | |||
| Including sales charge | +20.57% | +5.01% | +6.38% | +6.58% | |||
| Cboe S&P 500 BuyWrite Index | +21.10% | +4.15% | +6.95% | +7.26%* | |||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 34. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
A covered call is a transaction in which the investor selling call options owns the equivalent amount of the underlying security. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a security at a specified price within a specific time period. The investor’s long position in the asset is the “cover” because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.
An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
Investing in ADRs may have some limitations for investors such as the absence of voting rights.
Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.
The Fund may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.
Writing call options involves risks.
There is no guarantee that dividend-paying stocks will continue to pay dividends.
By writing covered call options, the Fund will give up the opportunity to benefit from potential increases in the value of a Fund asset above the exercise price, but will bear the risk of declines in the value of the
34
asset. Writing call options may expose the Fund to significant additional costs. Derivatives may be difficult to sell, unwind or value.
Writing call options may significantly reduce or eliminate the amount of Fund dividends that qualify to be taxed to non-corporate shareholders at a lower rate. Covered calls also are subject to federal tax rules that may: (1) limit the allowance of certain losses or deductions by the Fund; (2) convert the Fund’s long-term capital gains into higher taxed short-term capital gains or ordinary income; (3) convert the Fund’s ordinary losses or deductions to capital losses, the deductibility of which is more limited; and/or (4) cause the Fund to recognize income or gains without a corresponding receipt of cash.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.31%, 1.06%, and 0.88% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 through September 20, 2021.* Prior to January 27, 2021, the expense waiver was 1.09% of the Fund’s average daily net assets for Institutional Class shares. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.37% | 1.12% | 1.07% | |||
| Net expenses (including fee waivers, if any) | 1.31% | 1.06% | 0.88% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
35
Performance summaries
Delaware Covered Call Strategy Fund
Performance of a $10,000 investment1
Institutional Class and Class A shares
Average annual total returns from April 1, 2016 (Fund’s inception) through September 30, 2021
| For period beginning April 1, 2016 through September 30, 2021 | Starting value | Ending value | |||||||||
| S&P 500 Index | $ | 10,000 | $ | 24,203 | ||||||
| Cboe S&P 500 BuyWrite Index | $ | 10,000 | $ | 14,641 | ||||||
 | Delaware Covered Call Strategy Fund — Institutional Class shares | $ | 10,000 | $ | 14,065 | ||||||
| Delaware Covered Call Strategy Fund — Class A shares | $ | 9,425 | $ | 13,053 | ||||||
| 1 | The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on April 1, 2016, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 35. Please note additional details on pages 34 through 37. |
The graph also assumes $10,000 invested in the Cboe S&P 500 BuyWrite Index as of April 1, 2016. The Cboe S&P 500 BuyWrite Index is designed to show the hypothetical performance of a portfolio that engages in a buy-write strategy using S&P 500® Index call options.
The S&P 500 Index, mentioned on page 11, measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
The Bloomberg US Aggregate Index, mentioned on page 11, is a broad composite that tracks the investment grade US bond market.
The Cboe Volatility Index, mentioned on page 11, is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.
The US Consumer Price Index (CPI), mentioned on page 11, is a measure of inflation that is calculated by the US Department of Labor, representing changes in prices of all goods and services purchased for consumption by urban households.
Gross domestic product, mentioned on page 11, is a measure of all goods and services produced by a nation in a year.
The price-to-earnings ratio (P/E ratio), mentioned on page 11, is a valuation ratio of a company’s current share price compared to its earnings per share. Generally, a high P/E ratio means that investors are anticipating higher growth in the future. A forward P/E ratio is calculated using consensus forecasted earnings per share for the next 12 months.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
36
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FRCCX | 24611D102 | ||
| Institutional Class | FRCDX | 24611D201 | ||
| Class R6 | FRCEX | 24611D300 |
37
Performance summaries
Delaware Hedged U.S. Equity Opportunities Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||
| 1 year | 3 year | 5 year | Lifetime | |||||
| Class A (Est. August 1, 2016) | ||||||||
| Excluding sales charge | +14.35% | +10.34% | +10.04% | +9.51% | ||||
| Including sales charge | +7.76% | +8.17% | +8.75% | +8.26% | ||||
| Institutional Class (Est. August 1, 2016) | ||||||||
| Excluding sales charge | +14.79% | +10.68% | +10.41% | +9.87% | ||||
| Including sales charge | +14.79% | +10.68% | +10.41% | +9.87% | ||||
| Class R6 (Est. August 1, 2016) | ||||||||
| Excluding sales charge | +14.92% | +10.85% | +10.55% | +10.00% | ||||
| Including sales charge | +14.92% | +10.85% | +10.55% | +10.00% | ||||
| Russell 3000 Index (primary benchmark) | +31.88% | +16.00% | +16.85% | +16.36%* | ||||
| 70% Russell 3000 Index / 30% ICE BofA US 3-Month Treasury Bill Index | ||||||||
| (secondary benchmark) | +23.06% | +12.45% | +12.61% | +12.24%* | ||||
| ICE BofA US 3-Month Treasury Bill Index (secondary benchmark) | +0.07% | +1.18% | +1.16% | +1.13%* | ||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 39. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
Fixed income securities and bond funds can lose value, and investors can lose principal as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
Hedging seeks to limit downside risks, but it also will limit the Fund’s return potential. This will especially be true during periods of rapid or large market gains. Hedging activities involve fees and expenses, which can further reduce the Fund’s returns. If the Fund uses a hedging instrument at the wrong time or judges market conditions incorrectly, or the hedged instrument does not correlate to the risk sought to be hedged, the hedge might be unsuccessful, reduce the Fund’s return, and/or create a loss.
An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.
38
The Fund may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability.
Futures and options involve risks, such as possible default by a counterparty, potential losses if markets do not move as expected, and the potential for greater losses than if these techniques had not been used. Investments in derivatives can increase the volatility of the Fund’s share price and expose it to significant additional costs. Derivatives may be difficult to sell, unwind, or value.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.64%, 1.30%, and 1.20% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.85% | 1.62% | 1.57% | |||
| Net expenses (including fee waivers, if any) | 1.64% | 1.30% | 1.20% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
39
Performance summaries
Delaware Hedged U.S. Equity Opportunities Fund
Performance of a $10,000 investment1
Institutional Class and Class A shares
Average annual total returns August 1, 2016 (Fund’s inception) through September 30, 2021
| For period beginning August 1, 2016 through September 30, 2021 | Starting value | Ending value | |||||||||
| Russell 3000 Index (primary benchmark) | $ | 10,000 | $ | 28,897 | ||||||
 | 70% Russell 3000 Index / 30% ICE BofA US 3-Month Treasury Bill Index (secondary benchmark) | $ | 10,000 | $ | 18,129 | ||||||
 | Delaware Hedged U.S. Equity Opportunities Fund — Institutional Class shares | $ | 10,000 | $ | 16,260 | ||||||
| Delaware Hedged U.S. Equity Opportunities Fund — Class A shares | $ | 9,425 | $ | 15,067 | ||||||
 | ICE BofA US 3-Month Treasury Bill Index (secondary benchmark) | $ | 10,000 | $ | 10,599 | ||||||
| 1 | The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 1, 2016, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 39. Please note additional details on pages 38 through 41. |
The graph also assumes $10,000 invested in the Russell 3000 Index, 70% Russell 3000 Index/30% ICE BofA US 3-Month Treasury Bill Index, and the ICE BofA US 3-Month Treasury Bill Index as of August 1, 2016.
The Russell 3000 Index measures the performance of the largest 3,000 US companies, representing approximately 98% of the investable US equity market.
The ICE BofA US 3-Month Treasury Bill Index tracks the performance of US Treasury bills with a maturity of three months. The index comprises a single Treasury issue purchased at the beginning of the month, which is then sold at the end of the month and rolled into a newly selected issue that matures closest to, but not beyond, three months from the transaction date (known as the rebalancing date).
The S&P 500 Index, mentioned on page 14, measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
40
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FHEJX | 24611D847 | ||
| Institutional Class | FHEKX | 24611D839 | ||
| Class R6 | FHELX | 24611D821 |
41
Performance summaries
Delaware Premium Income Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | ||||||
| 1 year | 3 year | Lifetime | |||||
| Class A (Est. April 2, 2018) | |||||||
| Excluding sales charge | +11.96% | +3.14% | +3.58% | ||||
| Including sales charge | +5.54% | +1.11% | +1.84% | ||||
| Institutional Class (Est. April 2, 2018) | |||||||
| Excluding sales charge | +12.27% | +3.42% | +3.85% | ||||
| Including sales charge | +12.27% | +3.42% | +3.85% | ||||
| Class R6 (Est. April 2, 2018) | |||||||
| Excluding sales charge | +12.54% | +3.61% | +4.04% | ||||
| Including sales charge | +12.54% | +3.61% | +4.04% | ||||
| Cboe S&P 500 BuyWrite Index | +21.10% | +4.15% | +5.98%* | ||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 43. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee. A covered call is a transaction in which the investor selling call options owns the equivalent amount of the underlying security. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a security at a specified price within a specific time period. The investor’s long position in the asset is the “cover” because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.
Writing call options involves risks. By writing covered call options, the Fund will lose money if the exercise price of an option is below the market price of the asset on which an option was written and the premium received by the Fund for writing the option is insufficient to make up for that loss. The Fund will also give up the opportunity to benefit from potential increases in the value of a Fund asset above the option’s exercise price. Nevertheless, the Fund will continue to bear the risk of declines in the value of the covered assets. Derivatives may be difficult to sell, unwind or value.
There is no guarantee that dividend-paying stocks will continue to pay dividends. Writing call options may significantly reduce or eliminate the amount of dividends that generally are taxable to non-corporate shareholders at a lower rate.
Covered call options also are subject to federal tax rules that: (1) limit the allowance of certain losses or deductions; (2) convert long-term capital gains into higher taxed short-term capital gains or ordinary income; (3) convert ordinary losses or deductions to capital losses, the deductibility of which are more limited; and/or (4) cause the recognition of income or gains without a corresponding receipt of cash.
Writing call options may significantly reduce or eliminate the amount of Fund dividends that qualify to be taxed to non-corporate shareholders at a lower rate. Covered calls also are subject to federal tax rules that may: (1) limit the allowance of certain losses or
42
deductions by the Fund; (2) convert the Fund’s long-term capital gains into higher taxed short-term capital gains or ordinary income; (3) convert the Fund’s ordinary losses or deductions to capital losses, the deductibility of which is more limited; and/or (4) cause the Fund to recognize income or gains without a corresponding receipt of cash.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and 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) expenses from exceeding 1.30%, 1.05%, and 0.90% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.44% | 1.19% | 1.13% | |||
| Net expenses (including fee waivers, if any) | 1.30% | 1.05% | 0.90% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
43
Performance summaries
Delaware Premium Income Fund
Performance of a $10,000 investment1
Institutional Class and Class A shares
Average annual total returns from April 2, 2018 (Fund’s inception) through September 30, 2021
| For period beginning April 2, 2018 through September 30, 2021 | Starting value | Ending value | |||||||||
| Cboe S&P 500 BuyWrite Index | $ | 10,000 | $ | 12,306 | ||||||
 | Delaware Premium Income Fund — Institutional Class shares | $ | 10,000 | $ | 11,412 | ||||||
| Delaware Premium Income Fund — Class A shares | $ | 9,425 | $ | 10,657 | ||||||
| 1 | The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on April 2, 2018, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 43. Please note additional details on pages 42 through 45. |
The graph also assumes $10,000 invested in the Cboe S&P 500 BuyWrite Index as of April 2, 2018. The Cboe S&P 500 BuyWrite Index is designed to show the hypothetical performance of a portfolio that engages in a buy-write strategy using S&P 500® Index call options.
The S&P 500 Index, mentioned on page 15, measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
The Bloomberg US Aggregate Index, mentioned on page 15, is a broad composite that tracks the investment grade US bond market.
The Cboe Volatility Index, mentioned on page 15, is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.
The US Consumer Price Index (CPI), mentioned on page 15, is a measure of inflation that is calculated by the US Department of Labor, representing changes in prices of all goods and services purchased for consumption by urban households.
Gross domestic product, mentioned on page 15, is a measure of all goods and services produced by a nation in a year.
The price-to-earnings ratio (P/E ratio), mentioned on page 16, is a valuation ratio of a company’s current share price compared to its earnings per share. Generally, a high P/E ratio means that investors are anticipating higher growth in the future. A forward P/E ratio is calculated using consensus forecasted earnings per share for the next 12 months.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
44
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FPIKX | 24611D748 | ||
| Institutional Class | FPILX | 24611D730 | ||
| Class R6 | FPIMX | 24611D722 |
45
Performance summaries
Delaware Total Return Fund
September 30, 2021 (Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through September 30, 2021 | |||||||
| 1 year | 5 year | 10 year | Lifetime | |||||
| Class A (Est. April 24, 1990) | ||||||||
| Excluding sales charge | +21.77% | +6.73% | +8.32% | — | ||||
| Including sales charge | +14.74% | +5.47% | +7.68% | — | ||||
| Institutional Class (Est. April 1, 2013) | ||||||||
| Excluding sales charge | +22.06% | +7.09% | — | +6.78% | ||||
| Including sales charge | +22.06% | +7.09% | — | +6.78% | ||||
| Class R6 (Est. April 1, 2013) | ||||||||
| Excluding sales charge | +22.23% | +7.15% | — | +6.88% | ||||
| Including sales charge | +22.23% | +7.15% | — | +6.88% | ||||
| S&P 500 Index (primary benchmark) | +30.00% | +16.90% | +16.63% | +14.86%* | ||||
| 60% S&P 500 Index / 40% Bloomberg US Aggregate Index | ||||||||
| (secondary benchmark) | +16.91% | +11.63% | +11.34% | +10.36%* | ||||
| Bloomberg US Aggregate Index (secondary benchmark) | -0.90% | +2.94% | +3.01% | +2.93%* | ||||
| * | The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the month end prior to the Fund’s Institutional Class inception date. |
| 1 | Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares. |
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 47. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.
Fixed income securities and bond funds can lose value, and investors can lose principal as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for to obtain precise valuations of the high yield securities.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
46
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.
Risk controls and asset allocation models do not promise any level of performance or guarantee against loss of principal.
An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.
Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.
“Non-diversified” investments may allocate more of their net assets to investments in single securities than “diversified” investments. Resulting adverse effects may subject these investments to greater risks and volatility.
The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
| 2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 1.15%, 0.91%, and 0.79% of the Fund’s average daily net assets for Class A shares, Institutional Class shares, and Class R6 shares, respectively, from October 1, 2020 to September 30, 2021.* Prior to January 27, 2021, the expense waiver was 0.91% of the Fund’s average daily net assets for Institutional Class shares. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios. |
| Fund expense ratios | Class A | Institutional Class | Class R6 | |||
| Total annual operating expenses (without fee waivers) | 1.17% | 0.90% | 0.89% | |||
| Net expenses (including fee waivers, if any) | 1.15% | 0.90% | 0.79% | |||
| Type of waiver | Contractual | Contractual | Contractual |
| * | The aggregate contractual waiver period covering this report for Class R6 shares is from October 4, 2019 through January 31, 2022, and for Class A and Institutional Class shares is from January 28, 2021 through January 31, 2022. |
47
Performance summaries
Delaware Total Return Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from September 30, 2011 through September 30, 2021
| For period beginning September 30, 2011 through September 30, 2021 | Starting value | Ending value | |||||||||
 | S&P 500 Index (primary benchmark) | $ | 10,000 | $ | 46,586 | ||||||
 | 60% S&P 500 Index / 40% Bloomberg US Aggregate Index | ||||||||||
| (secondary benchmark) | $ | 10,000 | $ | 29,275 | |||||||
 | Delaware Total Return Fund — Class A shares | $ | 9,425 | $ | 20,960 | ||||||
| Bloomberg US Aggregate Index (secondary benchmark) | $ | 10,000 | $ | 13,455 | ||||||
Institutional Class shares
Average annual total returns from April 1, 2013 (Fund’s inception) through September 30, 2021
| For period beginning April 1, 2013 through September 30, 2021 | Starting value | Ending value | |||||||||
| S&P 500 Index (primary benchmark) | $ | 10,000 | $ | 34,207 | ||||||
| Bloomberg US Aggregate Index (secondary benchmark) | $ | 10,000 | $ | 24,735 | ||||||
| 60% S&P 500 Index / 40% Bloomberg US Aggregate Index | ||||||||||
| (secondary benchmark) | $ | 10,000 | $ | 22,666 | |||||||
| Delaware Total Return Fund — Institutional Class shares | $ | 10,000 | $ | 17,460 | ||||||
| 1 | The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on September 30, 2011, and includes the effect of a 5.75% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the S&P 500 Index (the Fund’s primary benchmark), 60% S&P 500 Index / 40% Bloomberg US Aggregate |
48
Index (the Fund’s secondary benchmark), and the Bloomberg Aggregate Index (the Fund’s secondary benchmark) as of September 30, 2011.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on April 1, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the S&P 500 Index (the Fund’s primary benchmark), 60% S&P 500 Index / 40% Bloomberg US Aggregate Index (the Fund’s secondary benchmark), and the Bloomberg Aggregate Index (the Fund’s secondary benchmark) as of April 1, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 47. Please note additional details on pages 46 through 49.
| Nasdaq | ||||
| symbols | CUSIPs | |||
| Class A | FITRX | 24611D649 | ||
| Institutional Class | FITUX | 24611D631 | ||
| Class R6 | FITVX | 24611D623 |
The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
The Bloomberg US Aggregate Index is a broad composite that tracks the investment grade US bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
49
Disclosure of Fund expenses
For the six-month period from April 1, 2021 to September 30, 2021 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from April 1, 2021 to September 30, 2021.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on a 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 each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
Delaware Equity Income Fund
Expense analysis of an investment of $1,000
| Beginning Account Value 4/1/21 | Ending Account Value 9/30/21 | Annualized Expense Ratio | Expenses Paid During Period 4/1/21 to 9/30/21* | ||||||||||||||
| Actual Fund return† | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,042.20 | 1.13% | $ | 5.79 | ||||||||||
| Institutional Class | 1,000.00 | 1,044.80 | 0.85% | 4.36 | |||||||||||||
| Class R6 | 1,000.00 | 1,044.10 | 0.81% | 4.15 | |||||||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.40 | 1.13% | $ | 5.72 | ||||||||||
| Institutional Class | 1,000.00 | 1,020.81 | 0.85% | 4.31 | |||||||||||||
| Class R6 | 1,000.00 | 1,021.01 | 0.81% | 4.10 | |||||||||||||
50
Delaware Growth and Income Fund
Expense analysis of an investment of $1,000
| Beginning Account Value 4/1/21 | Ending Account Value 9/30/21 | Annualized Expense Ratio | Expenses Paid During Period 4/1/21 to 9/30/21* | ||||||||||||||
| Actual Fund return† | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,044.30 | 1.07% | $ | 5.48 | ||||||||||
| Institutional Class | 1,000.00 | 1,045.60 | 0.82% | 4.20 | |||||||||||||
| Class R6 | 1,000.00 | 1,045.70 | 0.75% | 3.85 | |||||||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.70 | 1.07% | $ | 5.42 | ||||||||||
| Institutional Class | 1,000.00 | 1,020.96 | 0.82% | 4.15 | |||||||||||||
| Class R6 | 1,000.00 | 1,021.31 | 0.75% | 3.80 | |||||||||||||
Delaware Growth Equity Fund
Expense analysis of an investment of $1,000
| Beginning Account Value 4/1/21 | Ending Account Value 9/30/21 | Annualized Expense Ratio | Expenses Paid During Period 4/1/21 to 9/30/21* | ||||||||||||||
| Actual Fund return† | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,152.30 | 1.09% | $ | 5.88 | ||||||||||
| Institutional Class | 1,000.00 | 1,153.60 | 0.84% | 4.53 | |||||||||||||
| Class R6 | 1,000.00 | 1,154.20 | 0.75% | 4.05 | |||||||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.60 | 1.09% | $ | 5.52 | ||||||||||
| Institutional Class | 1,000.00 | 1,020.86 | 0.84% | 4.26 | |||||||||||||
| Class R6 | 1,000.00 | 1,021.31 | 0.75% | 3.80 | |||||||||||||
51
Disclosure of Fund expenses
Delaware Opportunity Fund
Expense analysis of an investment of $1,000
| Expenses | |||||||||||||
| Paid | |||||||||||||
| Beginning | Ending | During | |||||||||||
| Account | Account | Annualized | Period | ||||||||||
| Value | Value | Expense | 4/1/21 to | ||||||||||
| 4/1/21 | 9/30/21 | Ratio | 9/30/21* | ||||||||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,037.60 | 1.20% | $ | 6.13 | ||||||
| Institutional Class | 1,000.00 | 1,039.20 | 0.90% | 4.60 | |||||||||
| Class R6 | 1,000.00 | 1,039.80 | 0.78% | 3.99 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.05 | 1.20% | $ | 6.07 | ||||||
| Institutional Class | 1,000.00 | 1,020.56 | 0.90% | 4.56 | |||||||||
| Class R6 | 1,000.00 | 1,021.16 | 0.78% | 3.95 | |||||||||
Delaware Global Equity Fund
Expense analysis of an investment of $1,000
| Expenses | |||||||||||||
| Paid | |||||||||||||
| Beginning | Ending | During | |||||||||||
| Account | Account | Annualized | Period | ||||||||||
| Value | Value | Expense | 4/1/21 to | ||||||||||
| 4/1/21 | 9/30/21 | Ratio | 9/30/21* | ||||||||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,021.50 | 1.35% | $ | 6.84 | ||||||
| Institutional Class | 1,000.00 | 1,023.30 | 1.07% | 5.43 | |||||||||
| Class R6 | 1,000.00 | 1,022.90 | 1.02% | 5.17 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.30 | 1.35% | $ | 6.83 | ||||||
| Institutional Class | 1,000.00 | 1,019.70 | 1.07% | 5.42 | |||||||||
| Class R6 | 1,000.00 | 1,019.95 | 1.02% | 5.16 | |||||||||
52
Delaware Covered Call Strategy Fund
Expense analysis of an investment of $1,000
| Expenses | |||||||||||||
| Paid | |||||||||||||
| Beginning | Ending | During | |||||||||||
| Account | Account | Annualized | Period | ||||||||||
| Value | Value | Expense | 4/1/21 to | ||||||||||
| 4/1/21 | 9/30/21 | Ratio | 9/30/21* | ||||||||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,037.80 | 1.31% | $ | 6.69 | ||||||
| Institutional Class | 1,000.00 | 1,039.50 | 1.06% | 5.42 | |||||||||
| Class R6 | 1,000.00 | 1,040.40 | 0.88% | 4.50 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.50 | 1.31% | $ | 6.63 | ||||||
| Institutional Class | 1,000.00 | 1,019.75 | 1.06% | 5.37 | |||||||||
| Class R6 | 1,000.00 | 1,020.66 | 0.88% | 4.46 | |||||||||
Delaware Hedged U.S. Equity Opportunities Fund
Expense analysis of an investment of $1,000
| Expenses | |||||||||||||
| Paid | |||||||||||||
| Beginning | Ending | During | |||||||||||
| Account | Account | Annualized | Period | ||||||||||
| Value | Value | Expense | 4/1/21 to | ||||||||||
| 4/1/21 | 9/30/21 | Ratio | 9/30/21* | ||||||||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,033.40 | 1.64% | $ | 8.36 | ||||||
| Institutional Class | 1,000.00 | 1,035.70 | 1.30% | 6.63 | |||||||||
| Class R6 | 1,000.00 | 1,036.60 | 1.20% | 6.13 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,016.85 | 1.64% | $ | 8.29 | ||||||
| Institutional Class | 1,000.00 | 1,018.55 | 1.30% | 6.58 | |||||||||
| Class R6 | 1,000.00 | 1,019.05 | 1.20% | 6.07 | |||||||||
53
Disclosure of Fund expenses
Delaware Premium Income Fund
Expense analysis of an investment of $1,000
| Expenses | |||||||||||||
| Paid | |||||||||||||
| Beginning | Ending | During | |||||||||||
| Account | Account | Annualized | Period | ||||||||||
| Value | Value | Expense | 4/1/21 to | ||||||||||
| 4/1/21 | 9/30/21 | Ratio | 9/30/21* | ||||||||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,023.40 | 1.30% | $ | 6.59 | ||||||
| Institutional Class | 1,000.00 | 1,024.90 | 1.05% | 5.33 | |||||||||
| Class R6 | 1,000.00 | 1,027.20 | 0.90% | 4.57 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.55 | 1.30% | $ | 6.58 | ||||||
| Institutional Class | 1,000.00 | 1,019.80 | 1.05% | 5.32 | |||||||||
| Class R6 | 1,000.00 | 1,020.56 | 0.90% | 4.56 | |||||||||
Delaware Total Return Fund
Expense analysis of an investment of $1,000
| Expenses | |||||||||||||
| Paid | |||||||||||||
| Beginning | Ending | During | |||||||||||
| Account | Account | Annualized | Period | ||||||||||
| Value | Value | Expense | 4/1/21 to | ||||||||||
| 4/1/21 | 9/30/21 | Ratio | 9/30/21* | ||||||||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,047.40 | 1.14% | $ | 5.85 | ||||||
| Institutional Class | 1,000.00 | 1,048.50 | 0.89% | 4.57 | |||||||||
| Class R6 | 1,000.00 | 1,048.90 | 0.79% | 4.06 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.35 | 1.14% | $ | 5.77 | ||||||
| Institutional Class | 1,000.00 | 1,020.61 | 0.89% | 4.51 | |||||||||
| Class R6 | 1,000.00 | 1,021.11 | 0.79% | 4.00 | |||||||||
| * | “Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (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. |
In addition to the Fund’s expenses reflected above, each Fund also indirectly bears its portion of the fees and expenses of the investment companies (Underlying Funds) in which it invests, including exchange-traded funds. The tables above do not reflect the expenses of the Underlying Funds.
54
Security type / sector allocations and top 10 equity holdings
Delaware Equity Income Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | |||||
| Security type / sector | of net assets | ||||
| Common Stock | 99.74 | % | |||
| Communication Services | 9.66 | % | |||
| Consumer Discretionary | 3.74 | % | |||
| Consumer Staples | 7.52 | % | |||
| Energy | 6.59 | % | |||
| Financials | 18.96 | % | |||
| Healthcare | 22.56 | % | |||
| Industrials | 10.12 | % | |||
| Information Technology | 16.35 | % | |||
| Materials | 3.75 | % | |||
| Real Estate | 0.08 | % | |||
| Utilities | 0.41 | % | |||
| Short-Term Investments | 0.22 | % | |||
| Total Value of Securities | 99.96 | % | |||
| Receivables and Other Assets Net of | |||||
| Liabilities | 0.04 | % | |||
| Total Net Assets | 100.00 | % | |||
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |||||
| Top 10 equity holdings | of net assets | ||||
| Johnson & Johnson | 4.46 | % | |||
| Cisco Systems | 3.97 | % | |||
| Raytheon Technologies | 3.70 | % | |||
| Philip Morris International | 3.58 | % | |||
| Comcast Class A | 3.56 | % | |||
| Verizon Communications | 3.54 | % | |||
| Motorola Solutions | 3.53 | % | |||
| Exxon Mobil | 3.49 | % | |||
| First American Financial | 3.33 | % | |||
| Broadcom | 3.22 | % | |||
55
Security type / sector allocations and top 10 equity holdings
Delaware Growth and Income Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | |||||
| Security type / sector | of net assets | ||||
| Common Stock | 99.68 | % | |||
| Communication Services | 9.55 | % | |||
| Consumer Discretionary | 3.77 | % | |||
| Consumer Staples | 7.41 | % | |||
| Energy | 6.70 | % | |||
| Financials | 18.79 | % | |||
| Healthcare | 22.80 | % | |||
| Industrials | 10.21 | % | |||
| Information Technology | 16.16 | % | |||
| Materials | 3.82 | % | |||
| Real Estate | 0.07 | % | |||
| Utilities | 0.40 | % | |||
| Short-Term Investments | 0.25 | % | |||
| Total Value of Securities | 99.93 | % | |||
| Receivables and Other Assets Net of | |||||
| Liabilities | 0.07 | % | |||
| Total Net Assets | 100.00 | % | |||
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |||||
| Top 10 equity holdings | of net assets | ||||
| Johnson & Johnson | 4.49 | % | |||
| Cisco Systems | 3.89 | % | |||
| Raytheon Technologies | 3.65 | % | |||
| Comcast Class A | 3.55 | % | |||
| Philip Morris International | 3.53 | % | |||
| Motorola Solutions | 3.48 | % | |||
| Verizon Communications | 3.46 | % | |||
| ConocoPhillips | 3.43 | % | |||
| First American Financial | 3.35 | % | |||
| Exxon Mobil | 3.27 | % | |||
56
Security type / sector allocations and top 10 equity holdings
Delaware Growth Equity Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | ||||
| Security type / sector | of net assets | |||
| Common Stock ◆ | 98.91% | |||
| Communication Services | 6.94% | |||
| Consumer Discretionary | 16.14% | |||
| Consumer Staples | 2.36% | |||
| Financials | 9.28% | |||
| Healthcare | 15.35% | |||
| Industrials | 11.19% | |||
| Information Technology* | 36.47% | |||
| Materials | 1.18% | |||
| Short-Term Investments | 1.25% | |||
| Total Value of Securities | 100.16% | |||
| Liabilities Net of Receivables and Other | ||||
| Assets | (0.16% | ) | ||
| Total Net Assets | 100.00% | |||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| * | To monitor compliance with the Fund’s concentration guidelines as described in the Fund’s prospectus and Statement of Additional Information, the Information Technology sector (as disclosed herein for financial reporting purposes) is subdivided into a variety of “industries” (in accordance with the requirements of the Investment Company Act of 1940, as amended). The Information Technology sector consisted of commercial services, computers, electronics, office/business equipment, semiconductors, and software. As of September 30, 2021, such amounts, as a percentage of total net assets were 3.30%, 11.34%, 1.91%, 3.20%, 5.81%, and 10.91%, respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentage in the Information Technology sector for financial reporting purposes may exceed 25%. |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | ||||
| Top 10 equity holdings | of net assets | |||
| Apple | 4.88% | |||
| Microsoft | 4.86% | |||
| Alphabet Class A | 3.81% | |||
| NVIDIA | 3.56% | |||
| Fortinet | 3.33% | |||
| PayPal Holdings | 3.29% | |||
| Tempur Sealy International | 3.22% | |||
| Zebra Technologies Class A | 3.20% | |||
| Facebook Class A | 3.14% | |||
| EPAM Systems | 3.13% | |||
57
Security type / sector allocations and top 10 equity holdings
Delaware Opportunity Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | ||||
| Security type / sector | of net assets | |||
| Common Stock | 99.45% | |||
| Basic Industry | 8.72% | |||
| Business Services | 1.49% | |||
| Capital Spending | 10.27% | |||
| Consumer Cyclical | 5.53% | |||
| Consumer Services | 8.61% | |||
| Consumer Staples | 2.98% | |||
| Energy | 5.33% | |||
| Financial Services | 21.08% | |||
| Healthcare | 6.01% | |||
| Real Estate Investment Trusts | 7.71% | |||
| Technology | 12.81% | |||
| Transportation | 2.99% | |||
| Utilities | 5.92% | |||
| Short-Term Investments | 0.66% | |||
| Total Value of Securities | 100.11% | |||
| Liabilities Net of Receivables and Other | ||||
| Assets | (0.11% | ) | ||
| Total Net Assets | 100.00% | |||
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | ||||
| Top 10 equity holdings | of net assets | |||
| East West Bancorp | 2.61% | |||
| Hess | 2.25% | |||
| Raymond James Financial | 2.19% | |||
| Quanta Services | 2.11% | |||
| Synchrony Financial | 1.99% | |||
| KBR | 1.89% | |||
| Synopsys | 1.84% | |||
| Hartford Financial Services Group | 1.78% | |||
| Agilent Technologies | 1.73% | |||
| Teradyne | 1.70% | |||
58
Security type / country and sector allocations
Delaware Global Equity Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | ||||
| Security type / country | of net assets | |||
| Common Stock by Country | 98.20% | |||
| Denmark | 3.01% | |||
| France | 14.87% | |||
| Germany | 10.88% | |||
| Japan | 8.45% | |||
| Netherlands | 3.83% | |||
| Spain | 3.20% | |||
| Sweden | 7.36% | |||
| Switzerland | 9.98% | |||
| United Kingdom | 8.71% | |||
| United States | 27.91% | |||
| Exchange-Traded Fund | 1.10% | |||
| Short-Term Investments | 0.17% | |||
| Total Value of Securities | 99.47% | |||
| Receivables and Other Assets Net of | ||||
| Liabilities | 0.53% | |||
| Total Net Assets | 100.00% | |||
| Percentage | ||||
| Common stock and preferred stock by sector◆ | of net assets | |||
| Communication Services | 5.21% | |||
| Consumer Discretionary | 9.72% | |||
| Consumer Staples* | 42.96% | |||
| Healthcare | 21.98% | |||
| Industrials | 8.60% | |||
| Information Technology | 3.20% | |||
| Materials | 3.52% | |||
| Technology | 3.01% | |||
| Total | 98.20% | |||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| * | To monitor compliance with the Fund’s concentration guidelines as described in the Fund’s prospectus and Statement of Additional Information, the Consumer Staples sector (as disclosed herein for financial reporting purposes) is subdivided into a variety of “industries” (in accordance with the requirements of the Investment Company Act of 1940, as amended). The Consumer Staples sector consisted of beverages, cosmetics/personal care, agricultural products, food retail, packaged foods & meats, household products/ wares, and retail. As of September 30, 2021, such amounts, as a percentage of total net assets were 6.36%, 4.76%, 2.63%, 6.56%, 16.75%, 4.48% and 1.42%, respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentage in the Consumer Staples sector for financial reporting purposes may exceed 25%. |
(continues) 59
Security type / sector allocations and top 10 equity holdings
Delaware Covered Call Strategy Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | ||||
| Security type / sector | of net assets | |||
| Common Stock ◆ | 98.49% | |||
| Communication Services | 8.17% | |||
| Consumer Discretionary | 15.93% | |||
| Consumer Staples | 4.83% | |||
| Energy | 4.58% | |||
| Financials | 8.94% | |||
| Healthcare | 9.24% | |||
| Industrials | 9.36% | |||
| Information Technology* | 30.57% | |||
| Materials | 3.42% | |||
| Utilities | 3.45% | |||
| Short-Term Investments | 3.38% | |||
| Total Value of Securities Before Options | ||||
| Written | 101.87% | |||
| Options Written | (1.70% | ) | ||
| Liabilities Net of Receivables and Other | ||||
| Assets | (0.17% | ) | ||
| Total Net Assets | 100.00% | |||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| * | To monitor compliance with the Fund’s concentration guidelines as described in the Fund’s prospectus and Statement of Additional Information, the Information Technology sector (as disclosed herein for financial reporting purposes) is subdivided into a variety of “industries” (in accordance with the requirements of the Investment Company Act of 1940, as amended). The Information Technology sector consisted of computers, diversified financial services, semiconductors, and software. As of September 30, 2021, such amounts, as a percentage of total net assets were 8.92%, 4.35%, 8.88%, and 8.42%, respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentage in the Information Technology sector for financial reporting purposes may exceed 25%. |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | ||||
| Top 10 equity holdings | of net assets | |||
| Apple | 8.92% | |||
| Microsoft | 8.42% | |||
| Alphabet Class A | 5.95% | |||
| Home Depot | 4.86% | |||
| Costco Wholesale | 4.83% | |||
| Medtronic | 4.75% | |||
| Texas Instruments | 4.53% | |||
| Booking Holdings | 4.37% | |||
| Broadcom | 4.36% | |||
| BlackRock | 3.93% | |||
60
Security type / sector allocations and top 10 equity holdings
Delaware Hedged U.S. Equity Opportunities Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | ||||
| Security type / sector | of net assets | |||
| Common Stock | 94.50% | |||
| Communication Services | 7.68% | |||
| Consumer Discretionary | 14.65% | |||
| Consumer Staples | 6.80% | |||
| Energy | 1.37% | |||
| Financials | 12.97% | |||
| Healthcare | 13.82% | |||
| Industrials | 10.74% | |||
| Information Technology | 18.18% | |||
| Materials | 3.10% | |||
| Real Estate | 3.09% | |||
| Utilities | 2.10% | |||
| Exchange-Traded Fund | 0.45% | |||
| Options Purchased | 1.20% | |||
| Short-Term Investments | 3.57% | |||
| Total Value of Securities Before Options | ||||
| Written | 99.72% | |||
| Options Written | (0.63% | ) | ||
| Receivables and Other Assets Net of | ||||
| Liabilities | 0.91% | |||
| Total Net Assets | 100.00% | |||
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | ||||
| Top 10 equity holdings | of net assets | |||
| Alphabet Class A | 2.16% | |||
| Microsoft | 2.12% | |||
| Amazon.com | 2.05% | |||
| Facebook Class A | 1.53% | |||
| Apple | 1.40% | |||
| Chubb | 1.37% | |||
| Medtronic | 1.24% | |||
| Marsh & McLennan | 1.21% | |||
| Johnson & Johnson | 1.10% | |||
| TJX | 1.07% | |||
(continues) 61
Security type / sector allocations and top 10 equity holdings
Delaware Premium Income Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | |||||
| Security type / sector | of net assets | ||||
| Common Stock ◆ | 117.14 | % | |||
| Communication Services | 8.58 | % | |||
| Consumer Discretionary | 13.45 | % | |||
| Consumer Staples | 6.88 | % | |||
| Energy | 10.28 | % | |||
| Financials | 14.17 | % | |||
| Healthcare | 13.84 | % | |||
| Industrials | 16.38 | % | |||
| Information Technology* | 31.40 | % | |||
| Materials | 2.16 | % | |||
| Short-Term Investments | 2.82 | % | |||
| Total Value of Securities Before Options | |||||
| Written | 119.96 | % | |||
| Options Written | (19.95 | %) | |||
| Liabilities Net of Receivables and Other | |||||
| Assets | (0.01 | %) | |||
| Total Net Assets | 100.00 | % | |||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| * | To monitor compliance with the Fund’s concentration guidelines as described in the Fund’s prospectus and Statement of Additional Information, the Information Technology sector (as disclosed herein for financial reporting purposes) is subdivided into a variety of “industries” (in accordance with the requirements of the Investment Company Act of 1940, as amended). The Information Technology sector consisted of computers, energy-alternate sources, semiconductors, software, and telecommunications. As of September 30, 2021, such amounts, as a percentage of total net assets were 4.34%, 2.02%, 12.04%, 2.92%, and 10.08%, respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentage in the Information Technology sector for financial reporting purposes may exceed 25%. |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |||||
| Top 10 equity holdings | of net assets | ||||
| Broadcom | 10.45 | % | |||
| ConocoPhillips | 5.70 | % | |||
| Corning | 5.37 | % | |||
| Home Depot | 4.90 | % | |||
| Pfizer | 4.75 | % | |||
| Cisco Systems | 4.70 | % | |||
| Chevron | 4.58 | % | |||
| Lockheed Martin | 4.58 | % | |||
| CSX | 4.38 | % | |||
| Apple | 4.34 | % | |||
62
Security type / sector allocations and top 10 equity holdings
Delaware Total Return Fund
As of September 30, 2021 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Percentage | |||||
| Security type / sector | of net assets | ||||
| Agency Mortgage-Backed Securities | 3.07 | % | |||
| Collateralized Debt Obligations | 0.27 | % | |||
| Convertible Bonds | 6.73 | % | |||
| Corporate Bonds | 12.62 | % | |||
| Banking | 1.30 | % | |||
| Basic Industry | 1.04 | % | |||
| Brokerage | 0.06 | % | |||
| Capital Goods | 0.34 | % | |||
| Communications | 1.43 | % | |||
| Consumer Cyclical | 1.17 | % | |||
| Consumer Non-Cyclical | 0.79 | % | |||
| Energy | 2.05 | % | |||
| Financials | 0.61 | % | |||
| Healthcare | 0.45 | % | |||
| Insurance | 0.47 | % | |||
| Media | 0.63 | % | |||
| Real Estate Investment Trusts | 0.21 | % | |||
| Services | 0.19 | % | |||
| Technology | 0.88 | % | |||
| Transportation | 0.19 | % | |||
| Utilities | 0.81 | % | |||
| Non-Agency Asset-Backed Securities | 0.18 | % | |||
| Non-Agency Commercial Mortgage-Backed | |||||
| Securities | 0.99 | % | |||
| Sovereign Bonds | 1.84 | % | |||
| Armenia | 0.04 | % | |||
| Colombia | 0.12 | % | |||
| Dominican Republic | 0.19 | % | |||
| Egypt | 0.13 | % | |||
| Gabon | 0.04 | % | |||
| Honduras | 0.04 | % | |||
| Indonesia | 0.03 | % | |||
| Ivory Coast | 0.12 | % | |||
| Malaysia | 0.14 | % | |||
| Mongolia | 0.06 | % | |||
| Morocco | 0.12 | % | |||
| North Macedonia | 0.03 | % | |||
| Paraguay | 0.17 | % | |||
| Peru | 0.10 | % | |||
| Romania | 0.02 | % | |||
| Senegal | 0.04 | % | |||
| Serbia | 0.10 | % | |||
| Turkey | 0.04 | % | |||
| Ukraine | 0.08 | % | |||
| Uruguay | 0.11 | % | |||
| Uzbekistan | 0.12 | % | |||
| Supranational Banks | 0.15 | % | |||
| US Treasury Obligations | 2.29 | % | |||
| Common Stock | 58.81 | % | |||
| Communication Services | 4.47 | % | |||
| Consumer Discretionary | 7.90 | % | |||
| Consumer Staples | 5.34 | % | |||
| Energy | 2.74 | % | |||
| Financials | 7.13 | % | |||
| Healthcare | 8.52 | % | |||
| Industrials | 3.21 | % | |||
| Information Technology | 13.24 | % | |||
| Materials | 1.07 | % | |||
| REIT Diversified | 0.05 | % | |||
| REIT Healthcare | 0.51 | % | |||
| REIT Hotel | 0.31 | % | |||
| REIT Industrial | 0.40 | % | |||
| REIT Information Technology | 0.32 | % | |||
| REIT Mall | 0.10 | % | |||
| REIT Manufactured Housing | 0.11 | % | |||
| REIT Multifamily | 1.05 | % | |||
| REIT Office | 0.26 | % | |||
| REIT Self-Storage | 0.55 | % | |||
| REIT Shopping Center | 0.27 | % | |||
| REIT Single Tenant | 0.21 | % | |||
| REIT Specialty | 0.08 | % | |||
| Utilities | 0.97 | % | |||
| Convertible Preferred Stock | 1.46 | % | |||
| Exchange-Traded Funds | 4.69 | % | |||
| Limited Liability Corporation | 1.73 | % | |||
| Short-Term Investments | 5.16 | % | |||
(continues) 63
Security type / sector allocations and top 10 equity holdings
Delaware Total Return Fund
| Percentage | |||||
| Security type / sector | of net assets | ||||
| Total Value of Securities | 99.99 | % | |||
| Receivables and Other Assets Net of | |||||
| Liabilities | 0.01 | % | |||
| Total Net Assets | 100.00 | % | |||
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |||||
| Top 10 equity holdings | of net assets | ||||
| Apple | 2.02 | % | |||
| Microsoft | 1.88 | % | |||
| Johnson & Johnson | 1.23 | % | |||
| Broadcom | 1.10 | % | |||
| Lowe’s | 1.08 | % | |||
| ConocoPhillips | 1.05 | % | |||
| Merck & Co. | 1.02 | % | |||
| Verizon Communications | 1.02 | % | |||
| MetLife | 0.97 | % | |||
| Amazon.com | 0.92 | % | |||
64
Schedules of investments
Delaware Equity Income Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 99.74% | ||||||
| Communication Services – 9.66% | ||||||
| AT&T | 277,723 | $ | 7,501,298 | |||
| Comcast Class A | 185,628 | 10,382,174 | ||||
| Verizon Communications | 191,311 | 10,332,707 | ||||
| 28,216,179 | ||||||
| Consumer Discretionary – 3.74% | ||||||
| Lowe’s | 13,334 | 2,704,935 | ||||
| TJX | 124,461 | 8,211,937 | ||||
| 10,916,872 | ||||||
| Consumer Staples – 7.52% | ||||||
| Altria Group | 97,007 | 4,415,759 | ||||
| Archer-Daniels-Midland | 13,394 | 803,774 | ||||
| Herbalife Nutrition † | 35,548 | 1,506,524 | ||||
| Mondelez International Class A | 82,134 | 4,778,556 | ||||
| Philip Morris International | 110,300 | 10,455,337 | ||||
| 21,959,950 | ||||||
| Energy – 6.59% | ||||||
| ConocoPhillips | 133,681 | 9,059,561 | ||||
| Exxon Mobil | 173,372 | 10,197,741 | ||||
| 19,257,302 | ||||||
| Financials – 18.96% | ||||||
| Allstate | 67,046 | 8,535,626 | ||||
| American Financial Group | 5,434 | 683,760 | ||||
| American International Group | 111,419 | 6,115,789 | ||||
| Discover Financial Services | 9,254 | 1,136,854 | ||||
| First American Financial | 145,106 | 9,729,357 | ||||
| MetLife | 119,353 | 7,367,661 | ||||
| Old Republic International | 184,973 | 4,278,425 | ||||
| OneMain Holdings | 57,085 | 3,158,513 | ||||
| Synchrony Financial | 127,937 | 6,253,561 | ||||
| Truist Financial | 138,323 | 8,112,644 | ||||
| 55,372,190 | ||||||
| Healthcare – 22.56% | ||||||
| AbbVie | 44,752 | 4,827,398 | ||||
| AmerisourceBergen | 31,499 | 3,762,556 | ||||
| Bristol-Myers Squibb | 144,350 | 8,541,189 | ||||
| Cardinal Health | 42,114 | 2,082,958 | ||||
| Cigna | 30,300 | 6,064,848 | ||||
| CVS Health | 65,468 | 5,555,614 | ||||
| Gilead Sciences | 58,762 | 4,104,526 | ||||
| Johnson & Johnson | 80,588 | 13,014,962 | ||||
| Merck & Co. | 113,861 | 8,552,100 | ||||
| Pfizer | 55,594 | 2,391,098 | ||||
| Viatris | 514,205 | 6,967,478 | ||||
| 65,864,727 | ||||||
| Industrials – 10.12% | ||||||
| Emerson Electric | 42,593 | 4,012,260 | ||||
| Honeywell International | 25,685 | 5,452,412 | ||||
| Northrop Grumman | 25,765 | 9,279,265 | ||||
| Raytheon Technologies | 125,841 | 10,817,292 | ||||
| 29,561,229 | ||||||
| Information Technology – 16.35% | ||||||
| Broadcom | 19,389 | 9,402,308 | ||||
| Cisco Systems | 212,768 | 11,580,962 | ||||
| Cognizant Technology Solutions | ||||||
| Class A | 116,683 | 8,659,046 | ||||
| HP | 100,578 | 2,751,814 | ||||
| Motorola Solutions | 44,437 | 10,323,604 | ||||
| Oracle | 46,764 | 4,074,547 | ||||
| Western Union | 46,563 | 941,504 | ||||
| 47,733,785 | ||||||
| Materials – 3.75% | ||||||
| DuPont de Nemours | 119,997 | 8,158,596 | ||||
| Newmont | 51,219 | 2,781,192 | ||||
| 10,939,788 | ||||||
| Real Estate – 0.08% | ||||||
| Equity Residential | 2,881 | 233,131 | ||||
| 233,131 | ||||||
| Utilities – 0.41% | ||||||
| NRG Energy | 29,047 | 1,185,989 | ||||
| 1,185,989 | ||||||
| Total Common Stock | ||||||
| (cost $257,730,922) | 291,241,142 | |||||
| Short-Term Investments – 0.22% | ||||||
| Money Market Mutual Funds – 0.22% | ||||||
| BlackRock FedFund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 163,431 | 163,431 | ||||
| Fidelity Investments Money | ||||||
| Market Government Portfolio | ||||||
| – Class I (seven-day effective | ||||||
| yield 0.01%) | 163,431 | 163,431 | ||||
| GS Financial Square | ||||||
| Government Fund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 163,431 | 163,431 | ||||
65
Schedules of investments
Delaware Equity Income Fund
| Number of | ||||||
| shares | Value (US $) | |||||
| Short-Term Investments (continued) | ||||||
| Money Market Mutual Funds (continued) | ||||||
| Morgan Stanley Government | ||||||
| Portfolio – Institutional | ||||||
| Share Class (seven-day | ||||||
| effective yield 0.03%) | 163,431 | $ | 163,431 | |||
| Total Short-Term Investments | ||||||
| (cost $653,724) | 653,724 | |||||
| Total Value of | ||||||
| Securities–99.96% | ||||||
| (cost $258,384,646) | $ | 291,894,866 | ||||
| † | Non-income producing security. |
Summary of abbreviations:
GS – Goldman Sachs
See accompanying notes, which are an integral part of the financial statements.
66
Delaware Growth and Income Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 99.68% | ||||||
| Communication Services – 9.55% | ||||||
| AT&T | 981,296 | $ | 26,504,805 | |||
| Comcast Class A | 660,714 | 36,953,734 | ||||
| Verizon Communications | 667,858 | 36,071,011 | ||||
| 99,529,550 | ||||||
| Consumer Discretionary – 3.77% | ||||||
| Lowe’s | 47,605 | 9,657,150 | ||||
| TJX | 448,677 | 29,603,709 | ||||
| 39,260,859 | ||||||
| Consumer Staples – 7.41% | ||||||
| Altria Group | 346,842 | 15,788,248 | ||||
| Archer-Daniels-Midland | 52,426 | 3,146,084 | ||||
| Herbalife Nutrition † | 123,440 | 5,231,387 | ||||
| Mondelez International | ||||||
| Class A | 279,301 | 16,249,732 | ||||
| Philip Morris International | 387,800 | 36,759,562 | ||||
| 77,175,013 | ||||||
| Energy – 6.70% | ||||||
| ConocoPhillips | 528,327 | 35,804,721 | ||||
| Exxon Mobil | 578,820 | 34,046,192 | ||||
| 69,850,913 | ||||||
| Financials – 18.79% | ||||||
| Allstate | 237,781 | 30,271,899 | ||||
| American Financial Group | 19,309 | 2,429,651 | ||||
| American International | ||||||
| Group | 402,713 | 22,104,917 | ||||
| Discover Financial Services | 32,650 | 4,011,053 | ||||
| First American Financial | 520,599 | 34,906,163 | ||||
| MetLife | 411,460 | 25,399,426 | ||||
| Old Republic International | 648,640 | 15,003,043 | ||||
| OneMain Holdings | 198,291 | 10,971,441 | ||||
| Synchrony Financial | 453,274 | 22,156,033 | ||||
| Truist Financial | 487,412 | 28,586,714 | ||||
| 195,840,340 | ||||||
| Healthcare – 22.80% | ||||||
| AbbVie | 160,286 | 17,290,051 | ||||
| AmerisourceBergen | 114,040 | 13,622,078 | ||||
| Bristol-Myers Squibb | 558,333 | 33,036,564 | ||||
| Cardinal Health | 151,732 | 7,504,665 | ||||
| Cigna | 106,438 | 21,304,630 | ||||
| CVS Health | 232,160 | 19,701,097 | ||||
| Gilead Sciences | 215,359 | 15,042,826 | ||||
| Johnson & Johnson | 289,514 | 46,756,511 | ||||
| Merck & Co. | 398,332 | 29,918,716 | ||||
| Pfizer | 198,963 | 8,557,399 | ||||
| Viatris | 1,830,524 | 24,803,600 | ||||
| 237,538,137 | ||||||
| Industrials – 10.21% | ||||||
| Emerson Electric | 153,077 | 14,419,853 | ||||
| Honeywell International | 94,681 | 20,098,883 | ||||
| Northrop Grumman | 94,025 | 33,863,104 | ||||
| Raytheon Technologies | 442,282 | 38,018,561 | ||||
| 106,400,401 | ||||||
| Information Technology – 16.16% | ||||||
| Broadcom | 69,501 | 33,703,120 | ||||
| Cisco Systems | 744,932 | 40,546,649 | ||||
| Cognizant Technology | ||||||
| Solutions Class A | 411,757 | 30,556,487 | ||||
| HP | 349,143 | 9,552,552 | ||||
| Motorola Solutions | 156,314 | 36,314,869 | ||||
| Oracle | 165,908 | 14,455,564 | ||||
| Western Union | 162,628 | 3,288,338 | ||||
| 168,417,579 | ||||||
| Materials – 3.82% | ||||||
| DuPont de Nemours | 433,464 | 29,471,217 | ||||
| Newmont | 190,683 | 10,354,087 | ||||
| 39,825,304 | ||||||
| Real Estate – 0.07% | ||||||
| Equity Residential | 8,737 | 706,998 | ||||
| 706,998 | ||||||
| Utilities – 0.40% | ||||||
| NRG Energy | 102,895 | 4,201,203 | ||||
| 4,201,203 | ||||||
| Total Common Stock | ||||||
| (cost $902,506,123) | 1,038,746,297 | |||||
| Short-Term Investments – 0.25% | ||||||
| Money Market Mutual Funds – 0.25% | ||||||
| BlackRock FedFund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 644,190 | 644,190 | ||||
| Fidelity Investments Money | ||||||
| Market Government | ||||||
| Portfolio – Class I (seven- | ||||||
| day effective yield 0.01%) | 644,190 | 644,190 | ||||
| GS Financial Square | ||||||
| Government Fund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 644,190 | 644,190 | ||||
67
Schedules of investments
Delaware Growth and Income Fund
| Number of | ||||||
| shares | Value (US $) | |||||
| Short-Term Investments (continued) | ||||||
| Money Market Mutual Funds (continued) | ||||||
| Morgan Stanley Government | ||||||
| Portfolio – Institutional | ||||||
| Share Class (seven-day | ||||||
| effective yield 0.03%) | 644,191 | $ | 644,191 | |||
| Total Short-Term Investments | ||||||
| (cost $2,576,761) | 2,576,761 | |||||
| Total Value of | ||||||
| Securities–99.93% | ||||||
| (cost $905,082,884) | $ | 1,041,323,058 | ||||
| † | Non-income producing security. |
Summary of abbreviations:
GS – Goldman Sachs
See accompanying notes, which are an integral part of the financial statements.
68
Delaware Growth Equity Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 98.91%◆ | ||||||
| Communication Services – 6.94% | ||||||
| Alphabet Class A † | 8,550 | $ | 22,858,596 | |||
| Facebook Class A † | 55,490 | 18,832,751 | ||||
| 41,691,347 | ||||||
| Consumer Discretionary – 16.14% | ||||||
| Amazon.com † | 4,760 | 15,636,790 | ||||
| AutoZone † | 8,300 | 14,093,317 | ||||
| Deckers Outdoor † | 48,850 | 17,595,770 | ||||
| Lowe’s | 69,160 | 14,029,798 | ||||
| Target | 71,031 | 16,249,762 | ||||
| Tempur Sealy International | 416,730 | 19,340,439 | ||||
| 96,945,876 | ||||||
| Consumer Staples – 2.36% | ||||||
| Costco Wholesale | 31,500 | 14,154,525 | ||||
| 14,154,525 | ||||||
| Financials – 9.28% | ||||||
| Ameriprise Financial | 54,370 | 14,360,204 | ||||
| Capital One Financial | 94,520 | 15,309,405 | ||||
| JPMorgan Chase & Co. | 81,180 | 13,288,354 | ||||
| US Bancorp | 214,460 | 12,747,502 | ||||
| 55,705,465 | ||||||
| Healthcare – 15.35% | ||||||
| Encompass Health | 182,000 | 13,657,280 | ||||
| Envista Holdings † | 320,660 | 13,406,795 | ||||
| HCA Healthcare | 57,200 | 13,883,584 | ||||
| IQVIA Holdings † | 53,600 | 12,839,344 | ||||
| Merck & Co. | 110,680 | 8,313,175 | ||||
| Thermo Fisher Scientific | 21,970 | 12,552,120 | ||||
| West Pharmaceutical Services | 41,300 | 17,533,502 | ||||
| 92,185,800 | ||||||
| Industrials – 11.19% | ||||||
| Dover | 90,570 | 14,083,635 | ||||
| EMCOR Group | 108,470 | 12,515,269 | ||||
| Parker-Hannifin | 53,640 | 14,998,817 | ||||
| Rockwell Automation | 44,300 | 13,025,972 | ||||
| United Parcel Service Class B | 69,110 | 12,584,931 | ||||
| 67,208,624 | ||||||
| Information Technology – 36.47% | ||||||
| Adobe † | 32,500 | 18,710,900 | ||||
| Apple | 207,278 | 29,329,837 | ||||
| Arrow Electronics † | 102,220 | 11,478,284 | ||||
| Cadence Design Systems † | 116,160 | 17,591,270 | ||||
| EPAM Systems † | 32,953 | 18,799,027 | ||||
| Fortinet † | 68,440 | 19,987,218 | ||||
| KLA | 40,500 | 13,547,655 | ||||
| Microsoft | 103,540 | 29,189,997 | ||||
| NVIDIA | 103,080 | 21,354,053 | ||||
| PayPal Holdings † | 76,050 | 19,788,970 | ||||
| Zebra Technologies Class A † | 37,307 | 19,228,774 | ||||
| 219,005,985 | ||||||
| Materials – 1.18% | ||||||
| International Paper | 127,210 | 7,113,583 | ||||
| 7,113,583 | ||||||
| Total Common Stock | ||||||
| (cost $344,554,586) | 594,011,205 | |||||
| Short-Term Investments – 1.25% | ||||||
| Money Market Mutual Funds – 1.25% | ||||||
| BlackRock FedFund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 1,870,480 | 1,870,480 | ||||
| Fidelity Investments Money | ||||||
| Market Government Portfolio | ||||||
| – Class I (seven-day effective | ||||||
| yield 0.01%) | 1,870,481 | 1,870,481 | ||||
| GS Financial Square | ||||||
| Government Fund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 1,870,481 | 1,870,481 | ||||
| Morgan Stanley Government | ||||||
| Portfolio – Institutional | ||||||
| Share Class (seven-day | ||||||
| effective yield 0.03%) | 1,870,481 | 1,870,481 | ||||
| Total Short-Term Investments | ||||||
| (cost $7,481,923) | 7,481,923 | |||||
| Total Value of | ||||||
| Securities–100.16% | ||||||
| (cost $352,036,509) | $ | 601,493,128 | ||||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| † | Non-income producing security. |
Summary of abbreviations:
GS – Goldman Sachs
See accompanying notes, which are an integral part of the financial statements.
69
Schedules of investments
Delaware Opportunity Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 99.45% | ||||||
| Basic Industry – 8.72% | ||||||
| Alcoa † | 99,600 | $ | 4,874,424 | |||
| Axalta Coating Systems † | 137,500 | 4,013,625 | ||||
| Berry Global Group † | 135,900 | 8,273,592 | ||||
| Celanese | 47,100 | 7,095,144 | ||||
| Crown Holdings | 65,600 | 6,611,168 | ||||
| Graphic Packaging Holding | 385,900 | 7,347,536 | ||||
| Huntsman | 380,000 | 11,244,200 | ||||
| Louisiana-Pacific | 81,800 | 5,020,066 | ||||
| Newmont | 65,000 | 3,529,500 | ||||
| 58,009,255 | ||||||
| Business Services – 1.49% | ||||||
| Brink’s | 85,600 | 5,418,480 | ||||
| ManpowerGroup | 41,500 | 4,493,620 | ||||
| 9,912,100 | ||||||
| Capital Spending – 10.27% | ||||||
| AECOM † | 138,200 | 8,727,330 | ||||
| AMETEK | 32,200 | 3,993,122 | ||||
| Gates Industrial † | 298,000 | 4,848,460 | ||||
| ITT | 129,700 | 11,133,448 | ||||
| KBR | 318,600 | 12,552,840 | ||||
| Oshkosh | 65,200 | 6,674,524 | ||||
| Quanta Services | 123,500 | 14,056,770 | ||||
| United Rentals † | 18,100 | 6,351,833 | ||||
| 68,338,327 | ||||||
| Consumer Cyclical – 5.53% | ||||||
| Aptiv † | 52,400 | 7,806,028 | ||||
| DR Horton | 130,200 | 10,932,894 | ||||
| Johnson Controls International | 133,200 | 9,068,256 | ||||
| Stanley Black & Decker | 51,100 | 8,958,341 | ||||
| 36,765,519 | ||||||
| Consumer Services – 8.61% | ||||||
| AutoZone † | 5,400 | 9,169,146 | ||||
| Cable One | 2,500 | 4,532,825 | ||||
| Darden Restaurants | 36,800 | 5,574,096 | ||||
| Dollar Tree † | 46,100 | 4,412,692 | ||||
| Hasbro | 49,900 | 4,452,078 | ||||
| Marriott International Class A † | 65,100 | 9,640,659 | ||||
| Polaris | 45,600 | 5,456,496 | ||||
| PVH † | 25,700 | 2,641,703 | ||||
| Ross Stores | 37,800 | 4,114,530 | ||||
| VF | 67,300 | 4,508,427 | ||||
| ViacomCBS Class B | 71,100 | 2,809,161 | ||||
| 57,311,813 | ||||||
| Consumer Staples – 2.98% | ||||||
| Campbell Soup | 56,600 | 2,366,446 | ||||
| Conagra Brands | 128,200 | 4,342,134 | ||||
| Kellogg | 67,700 | 4,327,384 | ||||
| Tyson Foods Class A | 56,500 | 4,460,110 | ||||
| US Foods Holding † | 124,300 | 4,308,238 | ||||
| 19,804,312 | ||||||
| Energy – 5.33% | ||||||
| Cabot Oil & Gas | 304,800 | 6,632,448 | ||||
| Hess | 191,900 | 14,989,309 | ||||
| Marathon Oil | 713,400 | 9,752,178 | ||||
| Valero Energy | 57,700 | 4,071,889 | ||||
| 35,445,824 | ||||||
| Financial Services – 21.08% | ||||||
| Affiliated Managers Group | 42,600 | 6,436,434 | ||||
| Allstate | 78,000 | 9,930,180 | ||||
| American Financial Group | 38,000 | 4,781,540 | ||||
| Assurant | 45,900 | 7,240,725 | ||||
| East West Bancorp | 223,600 | 17,337,944 | ||||
| Globe Life | 63,200 | 5,626,696 | ||||
| Hancock Whitney | 162,265 | 7,645,927 | ||||
| Hartford Financial Services | ||||||
| Group | 168,700 | 11,851,175 | ||||
| KeyCorp | 512,500 | 11,080,250 | ||||
| Raymond James Financial | 157,650 | 14,547,942 | ||||
| Reinsurance Group of America | 54,400 | 6,052,544 | ||||
| Signature Bank | 34,500 | 9,393,660 | ||||
| Synchrony Financial | 271,500 | 13,270,920 | ||||
| Synovus Financial | 163,300 | 7,167,237 | ||||
| Western Alliance Bancorp | 72,300 | 7,867,686 | ||||
| 140,230,860 | ||||||
| Healthcare – 6.01% | ||||||
| AmerisourceBergen | 53,300 | 6,366,685 | ||||
| Quest Diagnostics | 57,700 | 8,384,387 | ||||
| Service Corp. International | 93,500 | 5,634,310 | ||||
| STERIS | 31,300 | 6,393,964 | ||||
| Syneos Health † | 59,300 | 5,187,564 | ||||
| Zimmer Biomet Holdings | 54,600 | 7,991,256 | ||||
| 39,958,166 | ||||||
| Real Estate Investment Trusts – 7.71% | ||||||
| Apartment Income REIT | 130,729 | 6,380,882 | ||||
| Brandywine Realty Trust | 377,300 | 5,063,366 | ||||
| Host Hotels & Resorts † | 263,300 | 4,299,689 | ||||
| Kimco Realty | 330,900 | 6,866,175 | ||||
| Life Storage | 58,650 | 6,729,501 | ||||
| MGM Growth Properties | ||||||
| Class A | 198,100 | 7,587,230 | ||||
| Outfront Media | 242,300 | 6,105,960 | ||||
| Spirit Realty Capital | 179,100 | 8,245,764 | ||||
| 51,278,567 | ||||||
| Technology – 12.81% | ||||||
| Agilent Technologies | 73,200 | 11,531,196 | ||||
70
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock (continued) | ||||||
| Technology (continued) | ||||||
| Avnet | 138,800 | $ | 5,131,436 | |||
| Ciena † | 106,500 | 5,468,775 | ||||
| Citrix Systems | 15,700 | 1,685,709 | ||||
| Fiserv † | 28,400 | 3,081,400 | ||||
| Flex † | 440,000 | 7,779,200 | ||||
| Keysight Technologies † | 56,600 | 9,298,814 | ||||
| ON Semiconductor † | 148,500 | 6,796,845 | ||||
| Qorvo † | 50,500 | 8,443,095 | ||||
| Synopsys † | 40,800 | 12,215,928 | ||||
| Teradyne | 103,700 | 11,320,929 | ||||
| Western Digital † | 44,200 | 2,494,648 | ||||
| 85,247,975 | ||||||
| Transportation — 2.99% | ||||||
| CSX | 98,200 | 2,920,468 | ||||
| JB Hunt Transport Services | 29,100 | 4,866,102 | ||||
| Kirby † | 73,500 | 3,525,060 | ||||
| Southwest Airlines † | 166,500 | 8,563,095 | ||||
| 19,874,725 | ||||||
| Utilities — 5.92% | ||||||
| CMS Energy | 120,700 | 7,209,411 | ||||
| Edison International | 80,400 | 4,459,788 | ||||
| MDU Resources Group | 152,000 | 4,509,840 | ||||
| NRG Energy | 160,500 | 6,553,215 | ||||
| Public Service Enterprise Group | 140,600 | 8,562,540 | ||||
| WEC Energy Group | 50,000 | 4,410,000 | ||||
| Xcel Energy | 59,300 | 3,706,250 | ||||
| 39,411,044 | ||||||
| Total Common Stock | ||||||
| (cost $487,648,819) | 661,588,487 | |||||
| Short-Term Investments – 0.66% | ||||||
| Money Market Mutual Funds – 0.66% | ||||||
| BlackRock FedFund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 1,101,139 | 1,101,139 | ||||
| Fidelity Investments Money | ||||||
| Market Government Portfolio | ||||||
| – Class I (seven-day effective | ||||||
| yield 0.01%) | 1,101,139 | 1,101,139 | ||||
| GS Financial Square | ||||||
| Government Fund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 1,101,139 | 1,101,139 | ||||
| Morgan Stanley Government | ||||||
| Portfolio – Institutional | ||||||
| Share Class (seven-day | ||||||
| effective yield 0.03%) | 1,101,140 | 1,101,140 | ||||
| Total Short-Term Investments | ||||||
| (cost $4,404,557) | 4,404,557 | |||||
| Total Value of | ||||||
| Securities–100.11% | ||||||
| (cost $492,053,376) | $ | 665,993,044 | ||||
| † | Non-income producing security. |
Summary of abbreviations:
GS – Goldman Sachs
REIT – Real Estate Investment Trust
See accompanying notes, which are an integral part of the financial statements.
71
Schedules of investments
Delaware Global Equity Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 98.20%Δ | ||||||
| Denmark – 3.01% | ||||||
| Novo Nordisk Class B | 77,790 | $ | 7,498,145 | |||
| 7,498,145 | ||||||
| France – 14.87% | ||||||
| Air Liquide | 54,770 | 8,771,972 | ||||
| Danone | 137,420 | 9,369,014 | ||||
| Orange | 542,020 | 5,861,873 | ||||
| Publicis Groupe | 106,170 | 7,132,268 | ||||
| Sodexo † | 68,110 | 5,952,522 | ||||
| 37,087,649 | ||||||
| Germany – 10.88% | ||||||
| adidas AG | 18,510 | 5,816,889 | ||||
| Fresenius Medical Care AG & | ||||||
| Co. | 137,380 | 9,636,426 | ||||
| Knorr-Bremse | 38,910 | 4,163,043 | ||||
| SAP | 55,550 | 7,511,983 | ||||
| 27,128,341 | ||||||
| Japan – 8.45% | ||||||
| Asahi Group Holdings | 97,100 | 4,685,598 | ||||
| Kao | 101,400 | 6,034,679 | ||||
| Lawson | 72,300 | 3,551,545 | ||||
| Seven & i Holdings | 149,400 | 6,801,352 | ||||
| 21,073,174 | ||||||
| Netherlands – 3.83% | ||||||
| Koninklijke Ahold Delhaize | 286,710 | 9,546,909 | ||||
| 9,546,909 | ||||||
| Spain – 3.20% | ||||||
| Amadeus IT Group † | 121,180 | 7,970,231 | ||||
| 7,970,231 | ||||||
| Sweden – 7.36% | ||||||
| Essity Class B | 188,250 | 5,838,382 | ||||
| H & M Hennes & Mauritz | ||||||
| Class B † | 200,905 | 4,066,642 | ||||
| Securitas Class B | 532,800 | 8,432,954 | ||||
| 18,337,978 | ||||||
| Switzerland – 9.98% | ||||||
| Nestle | 85,780 | 10,335,638 | ||||
| Roche Holding | 23,700 | 8,649,788 | ||||
| Swatch Group | 22,620 | 5,901,145 | ||||
| 24,886,571 | ||||||
| United Kingdom – 8.71% | ||||||
| Diageo | 230,530 | 11,161,112 | ||||
| Next | 22,640 | 2,490,420 | ||||
| Smith & Nephew | 467,960 | 8,061,938 | ||||
| 21,713,470 | ||||||
| United States – 27.91% | ||||||
| 3M | 36,590 | 6,418,618 | ||||
| Clorox | 17,120 | 2,835,243 | ||||
| Conagra Brands | 174,290 | 5,903,202 | ||||
| General Mills | 110,620 | 6,617,288 | ||||
| Henry Schein † | 103,420 | 7,876,467 | ||||
| Ingredion | 73,580 | 6,549,356 | ||||
| Kimberly-Clark | 62,940 | 8,335,774 | ||||
| Lamb Weston Holdings | 155,640 | 9,551,627 | ||||
| Merck & Co. | 107,960 | 8,108,876 | ||||
| Parker-Hannifin | 8,690 | 2,429,898 | ||||
| Pfizer | 115,520 | 4,968,515 | ||||
| 69,594,864 | ||||||
| Total Common Stock | ||||||
| (cost $228,325,104) | 244,837,332 | |||||
| Exchange-Traded Fund – 1.10% | ||||||
| Vanguard S&P 500 ETF | 6,980 | 2,752,912 | ||||
| Total Exchange-Traded Fund | ||||||
| (cost $2,782,179) | 2,752,912 | |||||
| Short-Term Investments – 0.17% | ||||||
| Money Market Mutual Funds – 0.17% | ||||||
| BlackRock FedFund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 105,783 | 105,783 | ||||
| Fidelity Investments Money | ||||||
| Market Government Portfolio | ||||||
| – Class I (seven-day effective | ||||||
| yield 0.01%) | 105,783 | 105,783 | ||||
| GS Financial Square | ||||||
| Government Fund – | ||||||
| Institutional Shares (seven- | ||||||
| day effective yield 0.03%) | 105,783 | 105,783 | ||||
| Morgan Stanley Government | ||||||
| Portfolio – Institutional | ||||||
| Share Class (seven-day | ||||||
| effective yield 0.03%) | 105,784 | 105,784 | ||||
| Total Short-Term Investments | ||||||
| (cost $423,133) | 423,133 | |||||
| Total Value of | ||||||
| Securities–99.47% | ||||||
| (cost $231,530,416) | $ | 248,013,377 | ||||
| Δ | Securities have been classified by country of origin. Aggregate classification by business sector has been presented on page 59 in “Security type / country and sector allocations.” |
| † | Non-income producing security. |
72
The following foreign currency exchange contracts were outstanding at September 30, 2021:1
Foreign Currency Exchange Contracts
| Currency to | Settlement | Unrealized | |||||||||||||||||
| Counterparty | Receive (Deliver) | In Exchange For | Date | Depreciation | |||||||||||||||
| BNYM | DKK | (175,365 | ) | USD | 27,253 | 10/4/21 | $ | (65 | ) | ||||||||||
| BNYM | EUR | (27,853 | ) | USD | 32,191 | 10/4/21 | (75 | ) | |||||||||||
| BNYM | JPY | (2,018,590 | ) | USD | 18,081 | 10/4/21 | (57 | ) | |||||||||||
| BNYM | SEK | (300,859 | ) | USD | 34,279 | 10/4/21 | (88 | ) | |||||||||||
| Total Foreign Currency Exchange Contracts | $ | (285 | ) | ||||||||||||||||
The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The 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.
| 1 | See Note 8 in “Notes to financial statements.” |
Summary of abbreviations:
AG – Aktiengesellschaft
BNYM – Bank of New York Mellon
ETF – Exchange-Traded Fund
GS – Goldman Sachs
S&P – Standard & Poor’s Financial Services LLC
Summary of currencies:
DKK – Danish Krone
EUR – European Monetary Unit
JPY – Japanese Yen
SEK – Swedish Krona
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
73
Schedules of investments
Delaware Covered Call Strategy Fund
September 30, 2021
| Number of | |||||||||
| shares | Value (US $) | ||||||||
| Common Stock – 98.49%◆ | |||||||||
| Communication Services – 8.17% | |||||||||
| Alphabet Class A ~, † | 2,900 | $ | 7,753,208 | ||||||
| Facebook Class A ~, † | 8,500 | 2,884,815 | |||||||
| 10,638,023 | |||||||||
| Consumer Discretionary – 15.93% | |||||||||
| Amazon.com ~, † | 600 | 1,971,024 | |||||||
| Booking Holdings ~, † | 2,400 | 5,697,288 | |||||||
| Home Depot ~ | 19,300 | 6,335,418 | |||||||
| Tesla ~, † | 3,300 | 2,559,084 | |||||||
| Whirlpool ~ | 20,500 | 4,179,130 | |||||||
| 20,741,944 | |||||||||
| Consumer Staples – 4.83% | |||||||||
| Costco Wholesale ~ | 14,000 | 6,290,900 | |||||||
| 6,290,900 | |||||||||
| Energy – 4.58% | |||||||||
| Chevron ~ | 27,600 | 2,800,020 | |||||||
| Exxon Mobil ~ | 53,800 | 3,164,516 | |||||||
| 5,964,536 | |||||||||
| Financials – 8.94% | |||||||||
| Bank of America ~ | 95,200 | 4,041,240 | |||||||
| BlackRock ~ | 6,100 | 5,115,826 | |||||||
| JPMorgan Chase & Co. ~ | 15,200 | 2,488,088 | |||||||
| 11,645,154 | |||||||||
| Healthcare – 9.24% | |||||||||
| Bristol-Myers Squibb ~ | 37,500 | 2,218,875 | |||||||
| Medtronic ~ | 49,300 | 6,179,755 | |||||||
| UnitedHealth Group ~ | 9,300 | 3,633,882 | |||||||
| 12,032,512 | |||||||||
| Industrials – 9.36% | |||||||||
| Lockheed Martin ~ | 12,300 | 4,244,730 | |||||||
| Raytheon Technologies ~ | 24,900 | 2,140,404 | |||||||
| Southwest Airlines ~, † | 62,100 | 3,193,803 | |||||||
| Union Pacific ~ | 13,300 | 2,606,933 | |||||||
| 12,185,870 | |||||||||
| Information Technology – 30.57% | |||||||||
| Apple ~ | 82,100 | 11,617,150 | |||||||
| Broadcom ~ | 11,700 | 5,673,681 | |||||||
| Mastercard Class A ~ | 11,800 | 4,102,624 | |||||||
| Microsoft ~ | 38,900 | 10,966,688 | |||||||
| Texas Instruments ~ | 30,700 | 5,900,847 | |||||||
| Visa Class A ~ | 7,000 | 1,559,250 | |||||||
| 39,820,240 | |||||||||
| Materials – 3.42% | |||||||||
| PPG Industries ~ | 31,200 | 4,461,912 | |||||||
| 4,461,912 | |||||||||
| Utilities – 3.45% | |||||||||
| NextEra Energy ~ | 57,200 | 4,491,344 | |||||||
| 4,491,344 | |||||||||
| Total Common Stock | |||||||||
| (cost $84,372,562) | 128,272,435 | ||||||||
| Short-Term Investments – 3.38% | |||||||||
| Money Market Mutual Funds – 3.38% | |||||||||
| BlackRock FedFund – | |||||||||
| Institutional Shares (seven- | |||||||||
| day effective yield 0.03%) | 1,100,214 | 1,100,214 | |||||||
| Fidelity Investments Money | |||||||||
| Market Government Portfolio | |||||||||
| – Class I (seven-day effective | |||||||||
| yield 0.01%) | 1,100,214 | 1,100,214 | |||||||
| GS Financial Square | |||||||||
| Government Fund – | |||||||||
| Institutional Shares (seven- | |||||||||
| day effective yield 0.03%) | 1,100,214 | 1,100,214 | |||||||
| Morgan Stanley Government | |||||||||
| Portfolio – Institutional | |||||||||
| Share Class (seven-day | |||||||||
| effective yield 0.03%) | 1,100,214 | 1,100,214 | |||||||
| Total Short-Term Investments | |||||||||
| (cost $4,400,856) | 4,400,856 | ||||||||
| Total Value of Securities Before | |||||||||
| Options Written–101.87% | |||||||||
| (cost $88,773,418) | 132,673,291 | ||||||||
| Number of | |||||||||
| contracts | |||||||||
| Options Written – (1.70%) | |||||||||
| Equity Call Options – (1.70%) | |||||||||
| Alphabet, strike price $3,000, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(8,700,000) | (29 | ) | (46,110 | ) | |||||
| Amazon.com, strike price | |||||||||
| $3,480, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(2,088,000) | (6 | ) | (5,670 | ) | |||||
| Apple, strike price $150, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(12,315,000) | (821 | ) | (203,197 | ) | |||||
| Bank of America, strike price | |||||||||
| $42, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $(1,911,000) | (455 | ) | (98,052 | ) | |||||
74
| Number of | |||||||||
| contracts | Value (US $) | ||||||||
| Options Written (continued) | |||||||||
| Equity Call Options (continued) | |||||||||
| Bank of America, strike price | |||||||||
| $44, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(2,186,800) | (497 | ) | $ | (23,359 | ) | ||||
| BlackRock, strike price $940, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(5,734,000) | (61 | ) | (6,100 | ) | |||||
| Booking Holdings, strike price | |||||||||
| $2,415, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $(5,796,000) | (24 | ) | (232,320 | ) | |||||
| Bristol-Myers Squibb, strike | |||||||||
| price $65, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $(2,437,500) | (375 | ) | (18,562 | ) | |||||
| Broadcom, strike price $520, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(6,084,000) | (117 | ) | (64,935 | ) | |||||
| Chevron, strike price $105, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(2,898,000) | (276 | ) | (26,772 | ) | |||||
| Costco Wholesale, strike price | |||||||||
| $460, expiration date | |||||||||
| 12/17/21, notional amount | |||||||||
| $(6,440,000) | (140 | ) | (172,900 | ) | |||||
| Exxon Mobil, strike price $60, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(3,228,000) | (538 | ) | (49,765 | ) | |||||
| Facebook, strike price $365, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(3,102,500) | (85 | ) | (58,225 | ) | |||||
| Home Depot, strike price $335, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(6,465,500) | (193 | ) | (64,655 | ) | |||||
| JPMorgan Chase & Co., strike | |||||||||
| price $160, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(2,432,000) | (152 | ) | (85,500 | ) | |||||
| Lockheed Martin, strike price | |||||||||
| $370, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(4,551,000) | (123 | ) | (4,305 | ) | |||||
| Mastercard, strike price $370, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(4,366,000) | (118 | ) | (11,446 | ) | |||||
| Medtronic, strike price $130, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(6,409,000) | (493 | ) | (35,496 | ) | |||||
| Microsoft, strike price $305, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(11,864,500) | (389 | ) | (124,480 | ) | |||||
| NextEra Energy, strike price | |||||||||
| $85, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $(4,862,000) | (572 | ) | (41,470 | ) | |||||
| PPG Industries, strike price | |||||||||
| $170, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(5,304,000) | (312 | ) | (7,800 | ) | |||||
| Raytheon Technologies, strike | |||||||||
| price $90, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(2,241,000) | (249 | ) | (8,840 | ) | |||||
| Southwest Airlines, strike price | |||||||||
| $55, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $(3,415,500) | (621 | ) | (80,419 | ) | |||||
| Tesla, strike price $640, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(2,112,000) | (33 | ) | (519,585 | ) | |||||
| Texas Instruments, strike price | |||||||||
| $200, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $(6,140,000) | (307 | ) | (116,660 | ) | |||||
| Union Pacific, strike price $215, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(2,859,500) | (133 | ) | (18,421 | ) | |||||
75
Schedules of investments
Delaware Covered Call Strategy Fund
| Number of | |||||||||
| contracts | Value (US $) | ||||||||
| Options Written (continued) | |||||||||
| Equity Call Options (continued) | |||||||||
| UnitedHealth Group, strike price | |||||||||
| $440, expiration date | |||||||||
| 10/15/21, notional amount | |||||||||
| $(4,092,000) | (93 | ) | $ | (2,744 | ) | ||||
| Visa, strike price $240, | |||||||||
| expiration date 10/15/21, | |||||||||
| notional amount | |||||||||
| $(1,680,000) | (70 | ) | (2,065 | ) | |||||
| Whirlpool, strike price $220, | |||||||||
| expiration date 11/19/21, | |||||||||
| notional amount | |||||||||
| $(4,510,000) | (205 | ) | (82,000 | ) | |||||
| Total Options Written | |||||||||
| (premium received $3,312,478) | $ | (2,211,853 | ) | ||||||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| ~ | All or portion of the security has been pledged as collateral with outstanding options written. |
| † | Non-income producing security. |
Summary of abbreviations:
GS – Goldman Sachs
See accompanying notes, which are an integral part of the financial statements.
76
Delaware Hedged U.S. Equity Opportunities Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 94.50% | ||||||
| Communication Services – 7.68% | ||||||
| Activision Blizzard | 1,887 | $ | 146,035 | |||
| Alphabet Class A † | 564 | 1,507,865 | ||||
| Alphabet Class C † | 127 | 338,494 | ||||
| AT&T | 3,182 | 85,946 | ||||
| Cable One | 210 | 380,757 | ||||
| Charter Communications | ||||||
| Class A † | 94 | 68,391 | ||||
| Electronic Arts | 1,351 | 192,180 | ||||
| Facebook Class A † | 3,141 | 1,066,024 | ||||
| Match Group † | 1,198 | 188,074 | ||||
| Pinterest Class A † | 2,133 | 108,676 | ||||
| Roku † | 526 | 164,822 | ||||
| Snap Class A † | 5,093 | 376,220 | ||||
| Spotify Technology † | 1,273 | 286,858 | ||||
| T-Mobile US † | 1,323 | 169,027 | ||||
| Twitter † | 2,351 | 141,977 | ||||
| Verizon Communications | 1,616 | 87,280 | ||||
| ZoomInfo Technologies Class A † | 800 | 48,952 | ||||
| 5,357,578 | ||||||
| Consumer Discretionary – 14.65% | ||||||
| Airbnb Class A † | 4,098 | 687,440 | ||||
| Alibaba Group Holding ADR † | 592 | 87,646 | ||||
| Amazon.com † | 436 | 1,432,277 | ||||
| Arrival † | 6,194 | 81,451 | ||||
| Booking Holdings † | 96 | 227,892 | ||||
| CarMax † | 2,658 | 340,118 | ||||
| Carter’s | 2,078 | 202,065 | ||||
| Chegg † | 1,517 | 103,186 | ||||
| Chewy Class A † | 2,394 | 163,055 | ||||
| Chipotle Mexican Grill † | 114 | 207,197 | ||||
| Choice Hotels International | 1,631 | 206,109 | ||||
| Compass Group † | 14,595 | 298,485 | ||||
| Denny’s † | 6,183 | 101,030 | ||||
| Dollar General | 469 | 99,494 | ||||
| Dollar Tree † | 2,577 | 246,670 | ||||
| DraftKings Class A † | 4,895 | 235,743 | ||||
| Etsy † | 1,080 | 224,597 | ||||
| Five Below † | 729 | 128,895 | ||||
| Garmin | 2,046 | 318,071 | ||||
| General Motors † | 2,009 | 105,894 | ||||
| Genuine Parts | 869 | 105,349 | ||||
| Las Vegas Sands † | 4,814 | 176,192 | ||||
| Lennar Class A | 1,452 | 136,023 | ||||
| Lululemon Athletica † | 1,066 | 431,410 | ||||
| McDonald’s | 2,781 | 670,527 | ||||
| MercadoLibre † | 112 | 188,093 | ||||
| NIKE Class B | 3,694 | 536,480 | ||||
| NVR † | 114 | 546,525 | ||||
| Penn National Gaming † | 3,528 | 255,639 | ||||
| Polaris | 940 | 112,480 | ||||
| Ross Stores | 2,290 | 249,267 | ||||
| Six Flags Entertainment † | 2,926 | 124,355 | ||||
| Steven Madden | 4,094 | 164,415 | ||||
| Thor Industries | 1,395 | 171,250 | ||||
| TJX | 11,249 | 742,209 | ||||
| Wyndham Hotels & Resorts | 1,431 | 110,459 | ||||
| 10,217,988 | ||||||
| Consumer Staples – 6.80% | ||||||
| Clorox | 470 | 77,837 | ||||
| Coca-Cola | 9,653 | 506,493 | ||||
| Colgate-Palmolive | 9,685 | 731,992 | ||||
| Constellation Brands Class A | 970 | 204,369 | ||||
| Costco Wholesale | 243 | 109,192 | ||||
| Diageo | 12,335 | 597,199 | ||||
| General Mills | 1,198 | 71,664 | ||||
| Hormel Foods | 1,883 | 77,203 | ||||
| Kellogg | 1,398 | 89,360 | ||||
| Keurig Dr Pepper | 6,833 | 233,415 | ||||
| PepsiCo | 4,433 | 666,768 | ||||
| Philip Morris International | 3,236 | 306,740 | ||||
| Procter & Gamble | 4,061 | 567,728 | ||||
| Sovos Brands † | 1,828 | 25,501 | ||||
| Sysco | 801 | 62,879 | ||||
| Tyson Foods Class A | 2,379 | 187,798 | ||||
| US Foods Holding † | 4,079 | 141,378 | ||||
| Walmart | 612 | 85,301 | ||||
| 4,742,817 | ||||||
| Energy – 1.37% | ||||||
| Baker Hughes | 3,903 | 96,521 | ||||
| Canadian Natural Resources | 6,475 | 236,596 | ||||
| ConocoPhillips | 1,170 | 79,291 | ||||
| Diamondback Energy | 2,481 | 234,876 | ||||
| Halliburton | 2,946 | 63,693 | ||||
| Schlumberger | 3,630 | 107,593 | ||||
| SolarEdge Technologies † | 525 | 139,241 | ||||
| 957,811 | ||||||
| Financials – 12.97% | ||||||
| AerCap Holdings † | 2,792 | 161,406 | ||||
| Alleghany † | 225 | 140,492 | ||||
| American Express | 3,562 | 596,742 | ||||
| Arthur J Gallagher & Co. | 754 | 112,082 | ||||
| Assurant | 996 | 157,119 | ||||
| Athene Holding Class A † | 2,634 | 181,404 | ||||
| Bank of America | 9,317 | 395,507 | ||||
| Berkshire Hathaway Class B † | 1,127 | 307,603 | ||||
| Brown & Brown | 1,956 | 108,460 | ||||
| Charles Schwab | 8,662 | 630,940 | ||||
| Chubb | 5,511 | 956,048 | ||||
77
Schedules of investments
Delaware Hedged U.S. Equity Opportunities Fund
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock (continued) | ||||||
| Financials (continued) | ||||||
| CNO Financial Group | 9,426 | $ | 221,888 | |||
| Coinbase Global Class A † | 265 | 60,282 | ||||
| Credit Acceptance † | 479 | 280,359 | ||||
| Equitable Holdings | 3,540 | 104,926 | ||||
| First Citizens BancShares Class A | 143 | 120,573 | ||||
| First Republic Bank | 813 | 156,811 | ||||
| Hanover Insurance Group | 870 | 112,769 | ||||
| Intercontinental Exchange | 835 | 95,875 | ||||
| Kemper | 1,315 | 87,829 | ||||
| M&T Bank | 3,084 | 460,565 | ||||
| Markel † | 250 | 298,782 | ||||
| MarketAxess Holdings | 175 | 73,621 | ||||
| Marsh & McLennan | 5,566 | 842,859 | ||||
| MetLife | 4,415 | 272,538 | ||||
| Moody’s | 272 | 96,590 | ||||
| Progressive | 1,865 | 168,577 | ||||
| Raymond James Financial | 2,517 | 232,269 | ||||
| S&P Global | 379 | 161,033 | ||||
| Tradeweb Markets Class A | 1,474 | 119,070 | ||||
| Travelers | 811 | 123,280 | ||||
| Voya Financial | 5,088 | 312,352 | ||||
| Western Alliance Bancorp | 2,327 | 253,224 | ||||
| White Mountains Insurance | ||||||
| Group | 83 | 88,778 | ||||
| Willis Towers Watson | 409 | 95,076 | ||||
| Zions Bancorp | 7,322 | 453,159 | ||||
| 9,040,888 | ||||||
| Healthcare – 13.82% | ||||||
| Abbott Laboratories | 496 | 58,592 | ||||
| ABIOMED † | 507 | 165,039 | ||||
| Acadia Healthcare † | 1,700 | 108,426 | ||||
| Agilent Technologies | 669 | 105,388 | ||||
| Align Technology † | 578 | 384,619 | ||||
| Allakos † | 1,130 | 119,633 | ||||
| AstraZeneca ADR | 3,158 | 189,669 | ||||
| Baxter International | 4,860 | 390,890 | ||||
| Becton Dickinson and Co. | 533 | 131,022 | ||||
| Biogen † | 231 | 65,371 | ||||
| Boston Scientific † | 3,637 | 157,809 | ||||
| Bristol-Myers Squibb | 1,443 | 85,382 | ||||
| Centene † | 3,103 | 193,348 | ||||
| Cerner | 1,221 | 86,105 | ||||
| CVS Health | 2,486 | 210,962 | ||||
| Danaher | 1,560 | 474,926 | ||||
| Dexcom † | 627 | 342,881 | ||||
| Elanco Animal Health † | 3,532 | 112,635 | ||||
| Eli Lilly & Co. | 946 | 218,573 | ||||
| Encompass Health | 2,217 | 166,364 | ||||
| Exact Sciences † | 1,238 | 118,167 | ||||
| GoodRx Holdings Class A † | 3,486 | 142,996 | ||||
| Humana | 399 | 155,271 | ||||
| Illumina † | 534 | 216,596 | ||||
| Insulet † | 1,270 | 360,972 | ||||
| Integra LifeSciences | ||||||
| Holdings † | 1,939 | 132,783 | ||||
| Johnson & Johnson | 4,736 | 764,864 | ||||
| Kodiak Sciences † | 1,737 | 166,717 | ||||
| Laboratory Corp. of America | ||||||
| Holdings † | 318 | 89,498 | ||||
| Medtronic | 6,912 | 866,419 | ||||
| Merck & Co. | 1,130 | 84,874 | ||||
| Molina Healthcare † | 600 | 162,786 | ||||
| Multiplan † | 13,782 | 77,593 | ||||
| Oak Street Health † | 2,314 | 98,414 | ||||
| Organon & Co. | 3,473 | 113,880 | ||||
| Pfizer | 2,393 | 102,923 | ||||
| PTC Therapeutics † | 4,041 | 150,366 | ||||
| Regeneron Pharmaceuticals † | 287 | 173,687 | ||||
| Seagen † | 2,323 | 394,445 | ||||
| STERIS | 44 | 8,988 | ||||
| Stryker | 800 | 210,976 | ||||
| Teleflex | 577 | 217,269 | ||||
| Thermo Fisher Scientific | 189 | 107,981 | ||||
| UnitedHealth Group | 1,680 | 656,443 | ||||
| Veeva Systems Class A † | 497 | 143,221 | ||||
| Vertex Pharmaceuticals † | 822 | 149,103 | ||||
| 9,634,866 | ||||||
| Industrials – 10.74% | ||||||
| Airbus † | 839 | 111,231 | ||||
| AMERCO | 270 | 174,428 | ||||
| Canadian National Railway | 1,816 | 210,447 | ||||
| Carlisle | 688 | 136,767 | ||||
| CH Robinson Worldwide | 995 | 86,565 | ||||
| Cintas | 755 | 287,398 | ||||
| Clean Harbors † | 1,519 | 157,778 | ||||
| Colfax † | 3,660 | 167,994 | ||||
| Copart † | 4,129 | 572,775 | ||||
| CoStar Group † | 2,330 | 200,520 | ||||
| CRH | 1,564 | 73,392 | ||||
| Expeditors International of | ||||||
| Washington | 2,575 | 306,760 | ||||
| Fastenal | 3,761 | 194,105 | ||||
| Fortive | 1,802 | 127,167 | ||||
| IDEX | 1,117 | 231,163 | ||||
| IHS Markit | 751 | 87,582 | ||||
| II-VI † | 3,288 | 195,176 | ||||
| Ingersoll Rand † | 2,487 | 125,370 | ||||
| JB Hunt Transport Services | 1,264 | 211,366 | ||||
78
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock (continued) | ||||||
| Industrials (continued) | ||||||
| JELD-WEN Holding † | 4,464 | $ | 111,734 | |||
| Johnson Controls International | 2,870 | 195,390 | ||||
| Kennametal | 2,855 | 97,727 | ||||
| Lennox International | 742 | 218,274 | ||||
| Lockheed Martin | 1,397 | 482,105 | ||||
| Middleby † | 1,564 | 266,678 | ||||
| Northrop Grumman | 1,893 | 681,764 | ||||
| PACCAR | 2,125 | 167,705 | ||||
| Raytheon Technologies | 3,500 | 300,860 | ||||
| Rollins | 2,347 | 82,919 | ||||
| SPX FLOW | 1,599 | 116,887 | ||||
| Union Pacific | 2,270 | 444,943 | ||||
| Waste Connections | 846 | 106,537 | ||||
| Westinghouse Air Brake | ||||||
| Technologies | 6,420 | 553,468 | ||||
| 7,484,975 | ||||||
| Information Technology – 18.18% | ||||||
| Accenture Class A | 1,442 | 461,325 | ||||
| Advanced Micro Devices † | 3,656 | 376,202 | ||||
| Amphenol Class A | 1,134 | 83,043 | ||||
| ANSYS † | 226 | 76,942 | ||||
| Apple | 6,913 | 978,189 | ||||
| Arista Networks † | 844 | 290,032 | ||||
| Automatic Data Processing | 537 | 107,357 | ||||
| Black Knight † | 1,840 | 132,480 | ||||
| Booz Allen Hamilton Holding | 1,052 | 83,476 | ||||
| Broadcom | 390 | 189,123 | ||||
| CDW | 1,232 | 224,249 | ||||
| Cisco Systems | 4,835 | 263,169 | ||||
| Cognizant Technology Solutions | ||||||
| Class A | 3,053 | 226,563 | ||||
| Constellation Software | 229 | 375,162 | ||||
| EPAM Systems † | 147 | 83,861 | ||||
| F5 Networks † | 1,802 | 358,202 | ||||
| Fair Isaac † | 500 | 198,965 | ||||
| Fidelity National Information | ||||||
| Services | 1,214 | 147,720 | ||||
| First Solar † | 2,162 | 206,385 | ||||
| Fleetcor Technologies † | 1,464 | 382,499 | ||||
| Flex † | 13,025 | 230,282 | ||||
| Genpact | 6,922 | 328,864 | ||||
| GoDaddy Class A † | 2,183 | 152,155 | ||||
| Guidewire Software † | 1,658 | 197,086 | ||||
| Intel | 1,532 | 81,625 | ||||
| Jack Henry & Associates | 567 | 93,022 | ||||
| KLA | 269 | 89,983 | ||||
| Leidos Holdings | 4,998 | 480,458 | ||||
| Lumentum Holdings † | 3,995 | 333,742 | ||||
| Marvell Technology | 2,195 | 132,380 | ||||
| Mastercard Class A | 1,200 | 417,216 | ||||
| Micron Technology | 1,975 | 140,185 | ||||
| Microsoft | 5,244 | 1,478,388 | ||||
| MKS Instruments | 1,666 | 251,416 | ||||
| MongoDB † | 384 | 181,060 | ||||
| Motorola Solutions | 336 | 78,060 | ||||
| NXP Semiconductors | 446 | 87,358 | ||||
| Oracle | 1,414 | 123,202 | ||||
| Paychex | 1,004 | 112,900 | ||||
| Paycom Software † | 774 | 383,710 | ||||
| Q2 Holdings † | 366 | 29,331 | ||||
| RingCentral Class A † | 686 | 149,205 | ||||
| salesforce.com † | 1,405 | 381,064 | ||||
| Samsung Electronics GDR | 69 | 99,689 | ||||
| Topicus.com † | 365 | 38,324 | ||||
| Tower Semiconductor † | 2,300 | 68,770 | ||||
| Tyler Technologies † | 203 | 93,106 | ||||
| Universal Display | 585 | 100,012 | ||||
| Varonis Systems † | 1,994 | 121,335 | ||||
| Visa Class A | 1,449 | 322,765 | ||||
| VMware Class A † | 1,117 | 166,098 | ||||
| WEX † | 1,165 | 205,203 | ||||
| Workday Class A † | 1,124 | 280,876 | ||||
| 12,673,814 | ||||||
| Materials – 3.10% | ||||||
| Ball | 1,389 | 124,968 | ||||
| Celanese | 1,892 | 285,011 | ||||
| Ecolab | 1,948 | 406,392 | ||||
| FMC | 4,157 | 380,615 | ||||
| Linde | 1,526 | 447,698 | ||||
| Reliance Steel & Aluminum | 1,307 | 186,143 | ||||
| Rogers † | 661 | 123,263 | ||||
| Sherwin-Williams | 733 | 205,042 | ||||
| 2,159,132 | ||||||
| Real Estate – 3.09% | ||||||
| American Tower | 2,092 | 555,238 | ||||
| Americold Realty Trust | 4,788 | 139,091 | ||||
| Digital Realty Trust | 518 | 74,825 | ||||
| Equinix | 143 | 112,989 | ||||
| Gaming and Leisure Properties | 3,597 | 166,613 | ||||
| Public Storage | 642 | 190,738 | ||||
| Redfin † | 2,528 | 126,653 | ||||
| Ryman Hospitality Properties † | 2,260 | 189,162 | ||||
| STORE Capital | 6,699 | 214,569 | ||||
| VICI Properties | 8,451 | 240,093 | ||||
| Welltower | 1,740 | 143,376 | ||||
| 2,153,347 | ||||||
| Utilities – 2.10% | ||||||
| American Electric Power | 69 | 5,602 | ||||
79
Schedules of investments
Delaware Hedged U.S. Equity Opportunities Fund
| Number of | |||||||||
| shares | Value (US $) | ||||||||
| Common Stock (continued) | |||||||||
| Utilities (continued) | |||||||||
| Atmos Energy | 897 | $ | 79,115 | ||||||
| Avangrid | 1,556 | 75,622 | |||||||
| Consolidated Edison | 2,029 | 147,285 | |||||||
| Dominion Energy | 839 | 61,264 | |||||||
| Duke Energy | 1,799 | 175,564 | |||||||
| Exelon | 4,968 | 240,153 | |||||||
| Iberdrola | 13,617 | 136,993 | |||||||
| Pinnacle West Capital | 3,924 | 283,941 | |||||||
| UGI | 3,882 | 165,451 | |||||||
| WEC Energy Group | 1,092 | 96,314 | |||||||
| 1,467,304 | |||||||||
| Total Common Stock | |||||||||
| (cost $55,587,951) | 65,890,520 | ||||||||
| Exchange-Traded Fund – 0.45% | |||||||||
| iShares Russell 1000 Growth ETF | 1,140 | 312,406 | |||||||
| Total Exchange-Traded Fund | |||||||||
| (cost $319,346) | 312,406 | ||||||||
| Number of | |||||||||
| contracts | |||||||||
| Options Purchased – 1.20% | |||||||||
| Options on Indices – 1.20% | |||||||||
| S&P 500 Index, strike price | |||||||||
| $3,800, expiration date | |||||||||
| 3/18/22, notional amount | |||||||||
| $6,460,000 | 17 | 184,705 | |||||||
| S&P 500 Index, strike price | |||||||||
| $3,875, expiration date | |||||||||
| 12/17/21, notional amount | |||||||||
| $5,425,000 | 14 | 78,470 | |||||||
| S&P 500 Index, strike price | |||||||||
| $4,025, expiration date | |||||||||
| 11/19/21, notional amount | |||||||||
| $4,830,000 | 12 | 64,140 | |||||||
| S&P 500 Index, strike price | |||||||||
| $4,050, expiration date | |||||||||
| 12/17/21, notional amount | |||||||||
| $6,075,000 | 15 | 126,450 | |||||||
| S&P 500 Index, strike price | |||||||||
| $4,100, expiration date | |||||||||
| 6/17/22, notional amount | |||||||||
| $6,560,000 | 16 | 380,720 | |||||||
| Total Options Purchased | |||||||||
| (cost $978,178) | 834,485 | ||||||||
| Number of | |||||||||
| shares | |||||||||
| Short-Term Investments – 3.57% | |||||||||
| Money Market Mutual Funds – 3.57% | |||||||||
| BlackRock FedFund – | |||||||||
| Institutional Shares (seven-day | |||||||||
| effective yield 0.03%) | 621,797 | $ | 621,797 | ||||||
| Fidelity Investments Money | |||||||||
| Market Government Portfolio | |||||||||
| – Class I (seven-day effective | |||||||||
| yield 0.01%) | 621,798 | 621,798 | |||||||
| GS Financial Square Government | |||||||||
| Fund – Institutional Shares | |||||||||
| (seven-day effective yield | |||||||||
| 0.03%) | 621,798 | 621,798 | |||||||
| Morgan Stanley Government | |||||||||
| Portfolio – Institutional Share | |||||||||
| Class (seven-day effective | |||||||||
| yield 0.03%) | 621,797 | 621,797 | |||||||
| Total Short-Term Investments | |||||||||
| (cost $2,487,190) | 2,487,190 | ||||||||
| Total Value of Securities Before | |||||||||
| Options Written–99.72% | |||||||||
| (cost $59,372,665) | 69,524,601 | ||||||||
| Number of | |||||||||
| contracts | |||||||||
| Options Written – (0.63%) | |||||||||
| Options on Indices – (0.63%) | |||||||||
| S&P 500 Index, strike price | |||||||||
| $3,475, expiration date | |||||||||
| 3/18/22, notional amount | |||||||||
| $(5,907,500) | (17 | ) | (110,415 | ) | |||||
| S&P 500 Index, strike price | |||||||||
| $3,500, expiration date | |||||||||
| 12/17/21, notional amount | |||||||||
| $(4,900,000) | (14 | ) | (33,460 | ) | |||||
| S&P 500 Index, strike price | |||||||||
| $3,625, expiration date | |||||||||
| 12/17/21, notional amount | |||||||||
| $(5,437,500) | (15 | ) | (47,400 | ) | |||||
| S&P 500 Index, strike price | |||||||||
| $3,750, expiration date | |||||||||
| 6/17/22, notional amount | |||||||||
| $(6,000,000) | (16 | ) | (244,800 | ) | |||||
| Total Options Written | |||||||||
| (premium received $562,551) | $ | (436,075 | ) | ||||||
| † | Non-income producing security. |
80
The following foreign currency exchange contracts and futures contracts were outstanding at September 30, 2021:1
Foreign Currency Exchange Contracts
| Currency to | Settlement | Unrealized | ||||||||||||||
| Counterparty | Receive (Deliver) | In Exchange For | Date | Appreciation | ||||||||||||
| BNP | GBP | (954,000 | ) | USD | 1,316,308 | 12/15/21 | $ | 30,687 | ||||||||
| BNYM | CAD | (6,979 | ) | USD | 5,510 | 10/1/21 | — | |||||||||
| BNYM | GBP | (195 | ) | USD | 262 | 10/1/21 | — | |||||||||
| MS | CAD | (1,295,000 | ) | USD | 1,024,598 | 12/15/21 | 2,169 | |||||||||
| Total Foreign Currency Exchange Contracts | $ | 32,856 | ||||||||||||||
Futures Contracts
Exchange-Traded
| Variation | ||||||||||||||||||||||
| Margin | ||||||||||||||||||||||
| Notional | Value/ | Value/ | Due from | |||||||||||||||||||
| Notional | Cost | Expiration | Unrealized | Unrealized | (Due to) | |||||||||||||||||
| Contracts to Buy (Sell) | Amount | (Proceeds) | Date | Appreciation | Depreciation | Brokers | ||||||||||||||||
| (17) | E-mini S&P 500 Index | $ | (3,653,088 | ) | $ | (3,810,561 | ) | 12/17/21 | $ | 157,473 | $ | — | $ | 44,200 | ||||||||
| (22) | E-mini S&P MidCap 400 Index | (5,793,040 | ) | (5,951,833 | ) | 12/17/21 | 158,793 | — | 93,500 | |||||||||||||
| (13) | FTSE 100 Index | (1,239,008 | ) | (1,231,717 | ) | 12/17/21 | — | (7,291 | ) | 230 | ||||||||||||
| (5) | MSCI EAFE Index | (566,750 | ) | (594,576 | ) | 12/17/21 | 27,826 | — | 2,075 | |||||||||||||
| (5) | S&P/TSX 60 Index | (944,339 | ) | (971,660 | ) | 12/16/21 | 27,321 | — | 4,901 | |||||||||||||
| Total Futures Contracts | $ | (12,560,347 | ) | $ | 371,413 | $ | (7,291 | ) | $ | 144,906 | ||||||||||||
The use of foreign currency exchange contracts and futures 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 amounts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) and variation margin are reflected in the Fund’s net assets.
| 1 | See Note 8 in “Notes to financial statements.” |
| Summary of abbreviations: |
| ADR – American Depositary Receipt |
| BNP – BNP Paribas |
| BNYM – Bank of New York Mellon |
| EAFE – Europe, Australasia, and Far East |
| ETF – Exchange-Traded Fund |
| FTSE – Financial Times Stock Exchange |
| GDR – Global Depositary Receipt |
| GS – Goldman Sachs |
| MS – Morgan Stanley |
| MSCI – Morgan Stanley Capital International |
| S&P – Standard & Poor’s Financial Services LLC |
| TSX – Toronto Stock Exchange |
| Summary of currencies: |
| CAD – Canadian Dollar |
| GBP – British Pound Sterling |
| USD – US Dollar |
See accompanying notes, which are an integral part of the financial statements.
81
Schedules of investments
Delaware Premium Income Fund
September 30, 2021
| Number of | ||||||
| shares | Value (US $) | |||||
| Common Stock – 117.14% ◆ | ||||||
| Communication Services – 8.58% | ||||||
| Alphabet Class A ~, † | 400 | $ | 1,069,408 | |||
| Comcast Class A ~ | 28,200 | 1,577,226 | ||||
| Facebook Class A ~, † | 4,400 | 1,493,316 | ||||
| 4,139,950 | ||||||
| Consumer Discretionary – 13.45% | ||||||
| Booking Holdings ~, † | 500 | 1,186,935 | ||||
| Home Depot ~ | 7,200 | 2,363,472 | ||||
| TJX ~ | 16,800 | 1,108,464 | ||||
| Whirlpool ~ | 9,000 | 1,834,740 | ||||
| 6,493,611 | ||||||
| Consumer Staples – 6.88% | ||||||
| Constellation Brands Class A ~ | 9,400 | 1,980,486 | ||||
| Mondelez International | ||||||
| Class A ~ | 22,700 | 1,320,686 | ||||
| Philip Morris International ~ | 200 | 18,958 | ||||
| 3,320,130 | ||||||
| Energy – 10.28% | ||||||
| Chevron ~ | 21,800 | 2,211,610 | ||||
| ConocoPhillips ~ | 40,600 | 2,751,462 | ||||
| 4,963,072 | ||||||
| Financials – 14.17% | ||||||
| American Express ~ | 9,300 | 1,558,029 | ||||
| Bank of America ~ | 44,200 | 1,876,290 | ||||
| BlackRock ~ | 2,400 | 2,012,784 | ||||
| JPMorgan Chase & Co. ~ | 8,500 | 1,391,365 | ||||
| 6,838,468 | ||||||
| Healthcare – 13.84% | ||||||
| Amgen ~ | 3,200 | 680,480 | ||||
| Bristol-Myers Squibb ~ | 24,800 | 1,467,416 | ||||
| Merck & Co. ~ | 19,900 | 1,494,689 | ||||
| Pfizer ~ | 53,300 | 2,292,433 | ||||
| UnitedHealth Group ~ | 1,900 | 742,406 | ||||
| 6,677,424 | ||||||
| Industrials – 16.38% | ||||||
| Boeing ~, † | 7,500 | 1,649,550 | ||||
| CSX ~ | 71,100 | 2,114,514 | ||||
| Lockheed Martin ~ | 6,400 | 2,208,640 | ||||
| Raytheon Technologies ~ | 9,800 | 842,408 | ||||
| United Rentals ~, † | 3,100 | 1,087,883 | ||||
| 7,902,995 | ||||||
| Information Technology – 31.40% | ||||||
| Apple ~ | 14,800 | 2,094,200 | ||||
| Broadcom ~ | 10,400 | 5,043,272 | ||||
| Cisco Systems ~ | 41,700 | 2,269,731 | ||||
| Corning ~ | 71,100 | 2,594,439 | ||||
| First Solar ~, † | 10,200 | 973,692 | ||||
| Microsoft ~ | 5,000 | 1,409,600 | ||||
| Texas Instruments ~ | 4,000 | 768,840 | ||||
| 15,153,774 | ||||||
| Materials – 2.16% | ||||||
| PPG Industries ~ | 7,300 | 1,043,973 | ||||
| 1,043,973 | ||||||
| Total Common Stock | ||||||
| (cost $45,712,189) | 56,533,397 | |||||
| Short-Term Investments – 2.82% | ||||||
| Money Market Mutual Funds – 2.82% | ||||||
| BlackRock FedFund – | ||||||
| Institutional Shares (seven-day | ||||||
| effective yield 0.03%) | 340,505 | 340,505 | ||||
| Fidelity Investments Money | ||||||
| Market Government Portfolio | ||||||
| – Class I (seven-day effective | ||||||
| yield 0.01%) | 340,505 | 340,505 | ||||
| GS Financial Square Government | ||||||
| Fund – Institutional Shares | ||||||
| (seven-day effective yield | ||||||
| 0.03%) | 340,505 | 340,505 | ||||
| Morgan Stanley Government | ||||||
| Portfolio – Institutional Share | ||||||
| Class (seven-day effective | ||||||
| yield 0.03%) | 340,506 | 340,506 | ||||
| Total Short-Term Investments | ||||||
| (cost $1,362,021) | 1,362,021 | |||||
| Total Value of Securities Before | ||||||
| Options Written–119.96% | ||||||
| (cost $47,074,210) | 57,895,418 | |||||
| Number of | |||||||
| contracts | |||||||
| Options Written – (19.95%) | |||||||
| Equity Call Options – (19.95%) | |||||||
| Alphabet, strike price $2,120, | |||||||
| expiration date 3/18/22, | |||||||
| notional amount $(848,000) | (4 | ) | (242,460 | ) | |||
| American Express, strike price | |||||||
| $140, expiration date | |||||||
| 6/17/22, notional amount | |||||||
| $(1,302,000) | (93 | ) | (315,735 | ) | |||
| Amgen, strike price $220, | |||||||
| expiration date 1/21/22, | |||||||
| notional amount $(704,000) | (32 | ) | (25,200 | ) | |||
| Apple, strike price $110, | |||||||
| expiration date 1/21/22, | |||||||
| notional amount $(1,628,000) | (148 | ) | (490,990 | ) | |||
82
| Number of | ||||||||
| contracts | Value (US $) | |||||||
| Options Written (continued) | ||||||||
| Equity Call Options (continued) | ||||||||
| Bank of America, strike price | ||||||||
| $32, expiration date 1/21/22, | ||||||||
| notional amount $(1,414,400) | (442 | ) | $ | (481,780 | ) | |||
| BlackRock, strike price $720, | ||||||||
| expiration date 6/17/22, | ||||||||
| notional amount $(1,728,000) | (24 | ) | (359,880 | ) | ||||
| Boeing, strike price $190, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(1,425,000) | (75 | ) | (273,562 | ) | ||||
| Booking Holdings, strike price | ||||||||
| $1,880, expiration date | ||||||||
| 3/18/22, notional amount | ||||||||
| $(376,000) | (2 | ) | (110,620 | ) | ||||
| Booking Holdings, strike price | ||||||||
| $1,930, expiration date | ||||||||
| 1/21/22, notional amount | ||||||||
| $(579,000) | (3 | ) | (145,965 | ) | ||||
| Bristol-Myers Squibb, strike price | ||||||||
| $57.50, expiration date | ||||||||
| 6/17/22, notional amount | ||||||||
| $(1,426,000) | (248 | ) | (146,940 | ) | ||||
| Broadcom, strike price $380, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(2,470,000) | (65 | ) | (720,850 | ) | ||||
| Broadcom, strike price $400, | ||||||||
| expiration date 6/17/22, | ||||||||
| notional amount $(1,560,000) | (39 | ) | (395,655 | ) | ||||
| Chevron, strike price $95, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(2,071,000) | (218 | ) | (207,645 | ) | ||||
| Cisco Systems, strike price $46, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(1,918,200) | (417 | ) | (375,300 | ) | ||||
| Comcast, strike price $42.50, | ||||||||
| expiration date 10/15/21, | ||||||||
| notional amount $(25,500) | (6 | ) | (8,100 | ) | ||||
| Comcast, strike price $47.50, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(1,311,000) | (276 | ) | (250,470 | ) | ||||
| ConocoPhillips, strike price $45, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(1,264,500) | (281 | ) | (654,730 | ) | ||||
| ConocoPhillips, strike price $48, | ||||||||
| expiration date 11/19/21, | ||||||||
| notional amount $(600,000) | (125 | ) | (251,562 | ) | ||||
| Constellation Brands, strike price | ||||||||
| $180, expiration date | ||||||||
| 1/21/22, notional amount | ||||||||
| $(1,692,000) | (94 | ) | (312,550 | ) | ||||
| Corning, strike price $37, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(595,700) | (161 | ) | (31,637 | ) | ||||
| Corning, strike price $39, | ||||||||
| expiration date 11/19/21, | ||||||||
| notional amount $(2,145,000) | (550 | ) | (38,500 | ) | ||||
| CSX, strike price $29.17, | ||||||||
| expiration date 6/17/22, | ||||||||
| notional amount $(2,073,987) | (711 | ) | (218,633 | ) | ||||
| Facebook, strike price $290, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(870,000) | (30 | ) | (173,625 | ) | ||||
| Facebook, strike price $300, | ||||||||
| expiration date 3/18/22, | ||||||||
| notional amount $(420,000) | (14 | ) | (76,580 | ) | ||||
| First Solar, strike price $72.50, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(739,500) | (102 | ) | (250,155 | ) | ||||
| Home Depot, strike price $290, | ||||||||
| expiration date 6/17/22, | ||||||||
| notional amount $(2,088,000) | (72 | ) | (368,280 | ) | ||||
| JPMorgan Chase & Co., strike | ||||||||
| price $140, expiration date | ||||||||
| 1/21/22, notional amount | ||||||||
| $(1,190,000) | (85 | ) | (219,300 | ) | ||||
| Lockheed Martin, strike price | ||||||||
| $320, expiration date | ||||||||
| 6/17/22, notional amount | ||||||||
| $(2,048,000) | (64 | ) | (251,520 | ) | ||||
| Merck & Co., strike price $65, | ||||||||
| expiration date 6/17/22, | ||||||||
| notional amount $(1,293,500) | (199 | ) | (236,313 | ) | ||||
| Microsoft, strike price $190, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(950,000) | (50 | ) | (470,000 | ) | ||||
| Mondelez International, strike | ||||||||
| price $50, expiration date | ||||||||
| 1/21/22, notional amount | ||||||||
| $(1,135,000) | (227 | ) | (200,895 | ) | ||||
| Pfizer, strike price $37, expiration | ||||||||
| date 9/16/22, notional | ||||||||
| amount $(1,972,100) | (533 | ) | (379,762 | ) | ||||
83
Schedules of investments
Delaware Premium Income Fund
| Number of | ||||||||
| contracts | Value (US $) | |||||||
| Options Written (continued) | ||||||||
| Equity Call Options (continued) | ||||||||
| Philip Morris International, strike | ||||||||
| price $80, expiration date | ||||||||
| 1/21/22, notional amount | ||||||||
| $(16,000) | (2 | ) | $ | (3,195 | ) | |||
| PPG Industries, strike price $130, | ||||||||
| expiration date 5/20/22, | ||||||||
| notional amount $(520,000) | (40 | ) | (81,000 | ) | ||||
| PPG Industries, strike price $140, | ||||||||
| expiration date 2/18/22, | ||||||||
| notional amount $(462,000) | (33 | ) | (35,475 | ) | ||||
| Raytheon Technologies, strike | ||||||||
| price $75, expiration date | ||||||||
| 6/17/22, notional amount | ||||||||
| $(375,000) | (50 | ) | (70,250 | ) | ||||
| Raytheon Technologies, strike | ||||||||
| price $80, expiration date | ||||||||
| 6/17/22, notional amount | ||||||||
| $(384,000) | (48 | ) | (50,040 | ) | ||||
| Texas Instruments, strike price | ||||||||
| $160, expiration date 1/21/ | ||||||||
| 22, notional amount | ||||||||
| $(640,000) | (40 | ) | (139,900 | ) | ||||
| TJX, strike price $60, expiration | ||||||||
| date 1/21/22, notional | ||||||||
| amount $(1,008,000) | (168 | ) | (130,200 | ) | ||||
| United Rentals, strike price $300, | ||||||||
| expiration date 3/18/22, | ||||||||
| notional amount $(930,000) | (31 | ) | (212,660 | ) | ||||
| UnitedHealth Group, strike price | ||||||||
| $360, expiration date | ||||||||
| 1/21/22, notional amount | ||||||||
| $(684,000) | (19 | ) | (83,410 | ) | ||||
| Whirlpool, strike price $200, | ||||||||
| expiration date 1/21/22, | ||||||||
| notional amount $(1,800,000) | (90 | ) | (135,450 | ) | ||||
| Total Options Written | ||||||||
| (premium received $10,379,173) | $ | (9,626,774 | ) | |||||
| ◆ | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| ~ | All or portion of the security has been pledged as collateral with outstanding options written. |
| † | Non-income producing security. |
Summary of abbreviations:
GS – Goldman Sachs
See accompanying notes, which are an integral part of the financial statements.
84
Delaware Total Return Fund
September 30, 2021
| Principal | ||||||
| amount° | Value (US $) | |||||
| Agency Mortgage-Backed Securities – 3.07% | ||||||
| Fannie Mae | ||||||
| 4.50% 2/1/44 | 80,578 | $ | 88,785 | |||
| Fannie Mae S.F. 15 yr | ||||||
| 2.00% 2/1/36 | 258,633 | 267,216 | ||||
| 2.00% 3/1/36 | 156,683 | 162,343 | ||||
| 2.50% 7/1/36 | 253,051 | 264,423 | ||||
| Fannie Mae S.F. 20 yr | ||||||
| 2.00% 3/1/41 | 72,309 | 73,316 | ||||
| 2.00% 4/1/41 | 361,056 | 365,039 | ||||
| 2.00% 5/1/41 | 277,527 | 281,907 | ||||
| 2.50% 1/1/41 | 63,543 | 65,665 | ||||
| 3.00% 3/1/33 | 413,403 | 437,986 | ||||
| Fannie Mae S.F. 30 yr | ||||||
| 2.00% 11/1/50 | 169,924 | 170,509 | ||||
| 2.00% 12/1/50 | 68,629 | 68,865 | ||||
| 2.00% 3/1/51 | 152,225 | 152,771 | ||||
| 2.00% 6/1/51 | 1,770,338 | 1,786,924 | ||||
| 2.50% 10/1/50 | 187,348 | 195,748 | ||||
| 2.50% 2/1/51 | 138,075 | 142,488 | ||||
| 2.50% 5/1/51 | 563,490 | 581,499 | ||||
| 2.50% 7/1/51 | 436,357 | 450,586 | ||||
| 2.50% 8/1/51 | 349,968 | 363,833 | ||||
| 2.50% 9/1/51 | 235,630 | 243,314 | ||||
| 3.00% 11/1/46 | 346,317 | 366,072 | ||||
| 3.00% 3/1/50 | 203,321 | 215,770 | ||||
| 3.00% 6/1/50 | 41,997 | 43,986 | ||||
| 3.00% 7/1/50 | 212,410 | 222,370 | ||||
| 3.00% 8/1/50 | 102,900 | 108,094 | ||||
| 3.00% 9/1/50 | 209,862 | 219,374 | ||||
| 3.00% 5/1/51 | 16,566 | 17,621 | ||||
| 3.50% 12/1/47 | 533,978 | 568,635 | ||||
| 3.50% 1/1/48 | 350,914 | 373,301 | ||||
| 4.00% 3/1/47 | 298,840 | 323,748 | ||||
| 4.50% 9/1/40 | 174,446 | 193,530 | ||||
| 5.00% 7/1/47 | 116,153 | 132,672 | ||||
| 6.00% 5/1/36 | 32,516 | 36,515 | ||||
| 6.00% 6/1/37 | 11,819 | 13,961 | ||||
| 6.00% 7/1/37 | 14,626 | 17,016 | ||||
| 6.00% 8/1/37 | 15,673 | 18,413 | ||||
| 6.00% 10/1/40 | 136,241 | 160,738 | ||||
| 6.50% 11/1/33 | 81,563 | 91,611 | ||||
| 6.50% 6/1/36 | 36,173 | 41,156 | ||||
| 7.00% 3/1/32 | 109,106 | 116,638 | ||||
| 7.00% 8/1/32 | 84,202 | 87,264 | ||||
| Fannie Mae S.F. 30 yr TBA | ||||||
| 2.50% 10/1/51 | 479,000 | 493,875 | ||||
| Freddie Mac S.F. 15 yr | ||||||
| 1.50% 3/1/36 | 113,046 | 114,447 | ||||
| 2.00% 12/1/35 | 116,245 | 120,668 | ||||
| 3.00% 3/1/35 | 388,120 | 411,890 | ||||
| Freddie Mac S.F. 20 yr | ||||||
| 2.00% 3/1/41 | 83,658 | 84,823 | ||||
| 2.50% 6/1/41 | 436,141 | 451,787 | ||||
| 3.00% 9/1/40 | 602,711 | 634,000 | ||||
| 3.50% 9/1/35 | 398,292 | 429,130 | ||||
| Freddie Mac S.F. 30 yr | ||||||
| 2.00% 12/1/50 | 455,156 | 456,723 | ||||
| 3.00% 8/1/51 | 1,106,994 | 1,179,307 | ||||
| 3.50% 8/1/49 | 446,067 | 478,541 | ||||
| 4.50% 10/1/40 | 316,943 | 355,485 | ||||
| GNMA II S.F. 30 yr | ||||||
| 3.00% 5/20/51 | 106,819 | 111,736 | ||||
| 3.00% 7/20/51 | 199,041 | 208,204 | ||||
| Total Agency Mortgage-Backed Securities | ||||||
| (cost $15,086,692) | 15,062,318 | |||||
| Collateralized Debt Obligations – 0.27% | ||||||
| Octagon Investment | ||||||
| Partners 34 | ||||||
| Series 2017-1A | ||||||
| A1 144A 1.274% | ||||||
| (LIBOR03M + 1.14%) | ||||||
| 1/20/30 #, ● | 1,000,000 | 1,002,258 | ||||
| Venture 34 CLO | ||||||
| Series 2018-34A A | ||||||
| 144A 1.356% | ||||||
| (LIBOR03M + 1.23%, | ||||||
| Floor 1.23%) | ||||||
| 10/15/31 #, ● | 300,000 | 300,236 | ||||
| Total Collateralized Debt Obligations | ||||||
| (cost $1,297,725) | 1,302,494 | |||||
| Convertible Bonds – 6.73% | ||||||
| Basic Industry – 0.12% | ||||||
| Ivanhoe Mines 144A | ||||||
| 2.50% exercise price | ||||||
| $7.43, maturity date | ||||||
| 4/15/26 # | 513,000 | 602,270 | ||||
| 602,270 | ||||||
| Capital Goods – 0.49% | ||||||
| Chart Industries 144A | ||||||
| 1.00% exercise price | ||||||
| $58.73, maturity date | ||||||
| 11/15/24 # | 482,000 | 1,575,839 | ||||
| Kaman 3.25% exercise | ||||||
| price $65.26, maturity | ||||||
| date 5/1/24 | 798,000 | 813,360 | ||||
| 2,389,199 | ||||||
85
Schedules of investments
Delaware Total Return Fund
| Principal | ||||||
| amount° | Value (US $) | |||||
| Convertible Bonds (continued) | ||||||
| Communications – 1.23% | ||||||
| Cable One 144A 1.125% | ||||||
| exercise price | ||||||
| $2,275.83, maturity | ||||||
| date 3/15/28 # | 984,000 | $ | 1,003,316 | |||
| DISH Network 3.375% | ||||||
| exercise price $65.18, | ||||||
| maturity date 8/15/26 | 1,007,000 | 1,049,294 | ||||
| InterDigital 2.00% | ||||||
| exercise price $81.29, | ||||||
| maturity date 6/1/24 | 1,057,000 | 1,146,184 | ||||
| Liberty Broadband 144A | ||||||
| 1.25% exercise price | ||||||
| $900.01, maturity | ||||||
| date 9/30/50 # | 1,013,000 | 1,033,767 | ||||
| Liberty Latin America | ||||||
| 2.00% exercise price | ||||||
| $20.65, maturity date | ||||||
| 7/15/24 | 541,000 | 551,820 | ||||
| Liberty Media 2.25% | ||||||
| exercise price $32.28, | ||||||
| maturity date 9/30/46 | 2,744,000 | 1,241,650 | ||||
| 6,026,031 | ||||||
| Consumer Cyclical – 0.26% | ||||||
| Cheesecake Factory | ||||||
| 0.375% exercise price | ||||||
| $78.40, maturity date | ||||||
| 6/15/26 | 583,000 | 558,223 | ||||
| Ford Motor 144A 0.00% | ||||||
| exercise price $17.49, | ||||||
| maturity date | ||||||
| 3/15/26 #, ^ | 682,000 | 738,691 | ||||
| 1,296,914 | ||||||
| Consumer Non-Cyclical – 1.96% | ||||||
| BioMarin Pharmaceutical | ||||||
| 0.599% exercise price | ||||||
| $124.67, maturity | ||||||
| date 8/1/24 | 743,000 | 762,085 | ||||
| Chefs’ Warehouse | ||||||
| 1.875% exercise price | ||||||
| $44.20, maturity date | ||||||
| 12/1/24 | 1,110,000 | 1,188,558 | ||||
| Coherus Biosciences | ||||||
| 1.50% exercise price | ||||||
| $19.26, maturity date | ||||||
| 4/15/26 | 738,000 | 822,398 | ||||
| Collegium | ||||||
| Pharmaceutical | ||||||
| 2.625% exercise price | ||||||
| $29.19, maturity date | ||||||
| 2/15/26 | 811,000 | 809,785 | ||||
| FTI Consulting 2.00% | ||||||
| exercise price | ||||||
| $101.38, maturity | ||||||
| date 8/15/23 | 595,000 | 835,380 | ||||
| Insulet 0.375% exercise | ||||||
| price $226.73, | ||||||
| maturity date 9/1/26 | 313,000 | 436,831 | ||||
| Integra | ||||||
| LifeSciences Holdings | ||||||
| 0.50% exercise price | ||||||
| $73.67, maturity date | ||||||
| 8/15/25 | 1,088,000 | 1,200,608 | ||||
| Ionis Pharmaceuticals | ||||||
| 0.125% exercise price | ||||||
| $83.28, maturity date | ||||||
| 12/15/24 | 808,000 | 740,845 | ||||
| Jazz Investments I 2.00% | ||||||
| exercise price | ||||||
| $155.81, maturity | ||||||
| date 6/15/26 | 468,000 | 542,587 | ||||
| Neurocrine Biosciences | ||||||
| 2.25% exercise price | ||||||
| $75.92, maturity date | ||||||
| 5/15/24 | 284,000 | 379,373 | ||||
| Paratek Pharmaceuticals | ||||||
| 4.75% exercise price | ||||||
| $15.90, maturity date | ||||||
| 5/1/24 | 1,269,000 | 1,124,563 | ||||
| Repay Holdings 144A | ||||||
| 0.316% exercise price | ||||||
| $33.60, maturity date | ||||||
| 2/1/26 #, ^ | 799,000 | 775,529 | ||||
| 9,618,542 | ||||||
| Energy – 0.43% | ||||||
| Cheniere Energy 4.25% | ||||||
| exercise price | ||||||
| $138.38, maturity | ||||||
| date 3/15/45 | 1,242,000 | 1,077,989 | ||||
| Helix Energy Solutions | ||||||
| Group 6.75% exercise | ||||||
| price $6.97, maturity | ||||||
| date 2/15/26 | 967,000 | 1,010,703 | ||||
| 2,088,692 | ||||||
| Real Estate Investment Trusts – 0.33% | ||||||
| Blackstone Mortgage | ||||||
| Trust 4.75% exercise | ||||||
| price $36.23, maturity | ||||||
| date 3/15/23 | 813,000 | 834,808 | ||||
86
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Convertible Bonds (continued) | ||||||||
| Real Estate Investment Trusts (continued) | ||||||||
| Summit Hotel Properties | ||||||||
| 1.50% exercise price | ||||||||
| $11.99, maturity date | ||||||||
| 2/15/26 | 739,000 | $ | 779,852 | |||||
| 1,614,660 | ||||||||
| Technology – 1.27% | ||||||||
| Knowles 3.25% exercise | ||||||||
| price $18.43, maturity | ||||||||
| date 11/1/21 | 638,000 | 668,341 | ||||||
| Microchip Technology | ||||||||
| 1.625% exercise price | ||||||||
| $93.85, maturity date | ||||||||
| 2/15/27 | 440,000 | 1,006,928 | ||||||
| ON Semiconductor | ||||||||
| 1.625% exercise price | ||||||||
| $20.72, maturity date | ||||||||
| 10/15/23 | 513,000 | 1,157,585 | ||||||
| Palo Alto Networks | ||||||||
| 0.75% exercise price | ||||||||
| $266.35, maturity | ||||||||
| date 7/1/23 | 489,000 | 889,931 | ||||||
| Quotient Technology | ||||||||
| 1.75% exercise price | ||||||||
| $17.36, maturity date | ||||||||
| 12/1/22 | 1,017,000 | 987,834 | ||||||
| Travere Therapeutics | ||||||||
| 2.50% exercise price | ||||||||
| $38.80, maturity date | ||||||||
| 9/15/25 | 905,000 | 912,238 | ||||||
| Vishay Intertechnology | ||||||||
| 2.25% exercise price | ||||||||
| $31.32, maturity date | ||||||||
| 6/15/25 | 567,000 | 585,316 | ||||||
| 6,208,173 | ||||||||
| Transportation – 0.39% | ||||||||
| Seaspan 144A 3.75% | ||||||||
| exercise price $13.01, | ||||||||
| maturity date | ||||||||
| 12/15/25 # | 977,000 | 1,256,422 | ||||||
| Spirit Airlines 1.00% | ||||||||
| exercise price $49.07, | ||||||||
| maturity date 5/15/26 | 723,000 | 681,005 | ||||||
| 1,937,427 | ||||||||
| Utilities – 0.25% | ||||||||
| NextEra Energy Partners | ||||||||
| 144A 0.357% exercise | ||||||||
| price $76.10, maturity | ||||||||
| date 11/15/25 #, ^ | 377,000 | 401,505 | ||||||
| NRG Energy 2.75% | ||||||||
| exercise price $45.21, | ||||||||
| maturity date 6/1/48 | 703,000 | 828,134 | ||||||
| 1,229,639 | ||||||||
| Total Convertible Bonds | ||||||||
| (cost $29,750,339) | 33,011,547 | |||||||
| Corporate Bonds – 12.62% | ||||||||
| Banking – 1.30% | ||||||||
| Banco Continental 144A | ||||||||
| 2.75% 12/10/25 # | 200,000 | 198,752 | ||||||
| Banco Nacional de | ||||||||
| Panama 144A 2.50% | ||||||||
| 8/11/30 # | 205,000 | 196,851 | ||||||
| Bank of America | ||||||||
| 1.898% 7/23/31 µ | 85,000 | 82,018 | ||||||
| 2.482% 9/21/36 µ | 370,000 | 362,851 | ||||||
| Bank of New York Mellon | ||||||||
| 4.70% 9/20/25 µ, ψ | 20,000 | 22,000 | ||||||
| Barclays 5.20% 5/12/26 | 200,000 | 229,157 | ||||||
| BBVA Bancomer 144A | ||||||||
| 1.875% 9/18/25 # | 200,000 | 201,340 | ||||||
| Citigroup | ||||||||
| 4.00% 12/10/25 µ, ψ | 10,000 | 10,387 | ||||||
| 4.45% 9/29/27 | 375,000 | 426,753 | ||||||
| Corp. Financiera de | ||||||||
| Desarrollo 144A | ||||||||
| 2.40% 9/28/27 # | 200,000 | 198,783 | ||||||
| Credit Agricole 144A | ||||||||
| 2.811% 1/11/41 # | 620,000 | 592,601 | ||||||
| Credit Suisse Group | ||||||||
| 144A 2.593% | ||||||||
| 9/11/25 #, µ | 250,000 | 259,240 | ||||||
| Deutsche Bank 2.222% | ||||||||
| 9/18/24 µ | 335,000 | 343,461 | ||||||
| Development Bank of | ||||||||
| Kazakhstan 144A | ||||||||
| 10.95% 5/6/26 # | KZT | 100,000,000 | 236,573 | |||||
| Goldman Sachs Group | ||||||||
| 1.542% 9/10/27 µ | 480,000 | 478,386 | ||||||
| JPMorgan Chase & Co. | ||||||||
| 1.47% 9/22/27 µ | 5,000 | 4,970 | ||||||
| 2.58% 4/22/32 µ | 230,000 | 233,361 | ||||||
| 3.328% 4/22/52 µ | 10,000 | 10,494 | ||||||
| 4.023% 12/5/24 µ | 150,000 | 160,691 | ||||||
| 4.60% 2/1/25 µ, ψ | 30,000 | 30,712 | ||||||
| Morgan Stanley | ||||||||
| 2.484% 9/16/36 µ | 254,000 | 248,731 | ||||||
| 3.622% 4/1/31 µ | 20,000 | 22,055 | ||||||
| 5.00% 11/24/25 | 110,000 | 125,810 | ||||||
87
Schedules of investments
Delaware Total Return Fund
| Principal | ||||||
| amount° | Value (US $) | |||||
| Corporate Bonds (continued) | ||||||
| Banking (continued) | ||||||
| NBK SPC 144A 1.625% | ||||||
| 9/15/27 #, µ | 205,000 | $ | 202,745 | |||
| PNC Financial Services | ||||||
| Group 2.60% | ||||||
| 7/23/26 | 130,000 | 138,234 | ||||
| QNB Finance 2.625% | ||||||
| 5/12/25 | 200,000 | 208,504 | ||||
| SVB Financial Group | ||||||
| 1.80% 2/2/31 | 15,000 | 14,411 | ||||
| 4.00% 5/15/26 µ, ψ | 405,000 | 415,631 | ||||
| Truist Bank 2.636% | ||||||
| 9/17/29 µ | 275,000 | 287,569 | ||||
| Truist Financial | ||||||
| 1.887% 6/7/29 µ | 20,000 | 19,999 | ||||
| 4.95% 9/1/25 µ, ψ | 30,000 | 32,845 | ||||
| US Bancorp | ||||||
| 1.45% 5/12/25 | 30,000 | 30,492 | ||||
| 3.00% 7/30/29 | 290,000 | 311,676 | ||||
| Wells Fargo & Co. 3.90% | ||||||
| 3/15/26 µ, ψ | 40,000 | 41,275 | ||||
| 6,379,358 | ||||||
| Basic Industry – 1.04% | ||||||
| AngloGold Ashanti | ||||||
| Holdings 3.75% | ||||||
| 10/1/30 | 200,000 | 205,373 | ||||
| Artera Services 144A | ||||||
| 9.033% 12/4/25 # | 520,000 | 564,850 | ||||
| Avient 144A 5.75% | ||||||
| 5/15/25 # | 144,000 | 151,920 | ||||
| Chemours 144A 5.75% | ||||||
| 11/15/28 # | 260,000 | 272,597 | ||||
| Corp Nacional del Cobre | ||||||
| de Chile 144A 3.15% | ||||||
| 1/14/30 # | 657,000 | 679,103 | ||||
| CSN Inova Ventures 144A | ||||||
| 6.75% 1/28/28 # | 200,000 | 213,590 | ||||
| First Quantum Minerals | ||||||
| 144A 7.25% 4/1/23 # | 360,000 | 366,750 | ||||
| 144A 7.50% 4/1/25 # | 365,000 | 374,884 | ||||
| Freeport-McMoRan | ||||||
| 5.45% 3/15/43 | 280,000 | 345,100 | ||||
| Georgia-Pacific | ||||||
| 144A 1.75% | ||||||
| 9/30/25 # | 20,000 | 20,485 | ||||
| 144A 2.10% | ||||||
| 4/30/27 # | 145,000 | 149,393 | ||||
| 144A 2.30% | ||||||
| 4/30/30 # | 35,000 | 35,657 | ||||
| INEOS Quattro Finance 2 | ||||||
| 144A 3.375% | ||||||
| 1/15/26 # | 200,000 | 202,250 | ||||
| International Flavors & | ||||||
| Fragrances 144A | ||||||
| 1.832% 10/15/27 # | 240,000 | 240,504 | ||||
| LyondellBasell Industries | ||||||
| 4.625% 2/26/55 | 215,000 | 260,006 | ||||
| New Gold 144A 7.50% | ||||||