0000769220 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010992Member delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010993Member delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010994Member delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010995Member delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010996Member delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010992Member rr:AfterTaxesOnDistributionsMember delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:C000010992Member rr:AfterTaxesOnDistributionsAndSalesMember delaware:AAAAMember 2012-11-28 2012-11-28 0000769220 delaware:S000003919Member delaware:benchmark0103AAAAMember delaware:AAAAMember 2012-11-28 2012-11-28 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares Other 2012-07-31 DELAWARE GROUP GOVERNMENT FUND 0000769220 false 2012-11-28 2012-11-30 2012-11-28 <div style="display: none">~ http://xbrl.sec.gov/rr/role/RiskReturnDetailData column period compact * row dei_DocumentInformationDocumentAxis compact * row dei_LegalEntityAxis compact * row rr_ProspectusShareClassAxis compact * row rr_PerformanceMeasureAxis compact * row primary compact * ~</div> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> What is the Fund's investment objective? </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> Delaware Core Plus Bond Fund seeks maximum long-term total return, consistent with reasonable risk. </p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> What are the Fund's fees and expenses? </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Delaware Investments® Funds. More information about these and other discounts is available from your financial advisor, in the Fund's prospectus under the section entitled &quot;About your account,&quot; and in the Fund's statement of additional information under the section entitled &quot;Purchasing shares.&quot; </p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> Shareholder fees (fees paid directly from your investment) </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment) </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> Example </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and reflects the applicable waivers and reimbursements for the 1-year contractual period and the total operating expenses without waivers for years 2 through 10. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> Portfolio turnover </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &quot;turns over&quot; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 422% of the average value of its portfolio.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> What are the Fund's principal investment strategies? </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">Under normal circumstances, the Manager will invest at least 80% of the Fund's net assets in fixed income securities (the 80% Policy). This is not a fundamental policy and can be changed without shareholder approval. However, shareholders would be given at least 60 days' notice prior to any change in the 80% Policy.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">The Fund will invest at least 65% of its net assets in domestic (U.S.) investment grade debt securities (the &quot;core&quot; portion of the portfolio). Such securities may include, but are not limited to, debt securities issued by the U.S. government and its agencies, high-quality corporate bonds, and mortgage-backed and asset-backed securities. In addition to this core allocation, the Fund may also invest in high yielding, lower-quality corporate bonds (also called &quot;junk bonds&quot;) and foreign securities. However, the Fund may invest no more than 20% of its net assets in high yield securities and no more than 20% of its net assets in foreign securities. Moreover, the Fund's total non-U.S. dollar currency exposure will be limited, in aggregate, to no more than 10% of net assets, and the Fund's investments in emerging markets securities will be limited to no more than 15% of the Fund's net assets. Due to the manner in which the Fund is managed, it may be subject to a high rate of portfolio turnover.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">The Fund may hold a substantial portion of its assets in cash or short-term fixed income obligations in unusual market conditions to meet redemption requests, for temporary defensive purposes, and pending investment. The Fund may also use a wide range of derivative instruments, typically including options, futures contracts, options on futures contracts, and swaps. The Fund will use derivatives for both hedging and nonhedging purposes. For example, the Fund may invest in: futures and options to manage duration and for defensive purposes, such as to protect gains or hedge against potential losses in the portfolio without actually selling a security, or to stay fully invested; forward foreign currency contracts to manage foreign currency exposure; interest rate swaps to neutralize the impact of interest rate changes; credit default swaps to hedge against bond defaults, to manage credit exposure or to enhance total return; and index swaps to enhance return or to affect diversification. The Fund will not use derivatives for reasons inconsistent with its investment objective and will limit its investments in derivative instruments to 20% of net assets.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> What are the principal risks of investing in the Fund? </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in the Fund will increase and decrease according to changes in the value of the securities in the Fund's portfolio. Principal risks include:</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Investments not guaranteed by the Manager or its affiliates</b> — Investments in the Fund are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Fund, the repayment of capital from the Fund, or any particular rate of return.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Market risk</b> — The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Interest rate risk </b>— The risk that securities will decrease in value if interest rates rise. This risk is generally associated with bonds.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>High yield (junk bond) risk </b>— The risk that high yield securities, commonly known as &quot;junk bonds,&quot; are subject to reduced creditworthiness of issuers; increased risk of default and a more limited and less liquid secondary market; and greater price volatility and risk of loss of income and principal than are higher rated securities. High yield bonds are sometimes issued by municipalities with less financial strength and therefore less ability to make projected debt payments on the bonds.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Credit risk </b>— The risk that an issuer of a debt security, including a governmental issuer, may be unable to make interest payments and repay principal in a timely manner.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Liquidity risk</b> — The possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Bank loans and other indebtedness</b> <b>risk</b> — The risk that the portfolio will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower and the lending institution.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Foreign risk</b> — The risk that foreign securities (particularly in emerging markets) may be adversely affected by political instability; changes in currency exchange rates; inefficient markets and higher transaction costs; foreign economic conditions; or inadequate or different regulatory and accounting standards.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Forward foreign currency risk</b> — The use of forward foreign currency exchange contracts may substantially change a fund's exposure to currency exchange rates and could result in losses to the fund if currencies do not perform as the Manager expects. The use of these investments as a hedging technique to reduce a fund's exposure to currency risks may also reduce its ability to benefit from favorable changes in currency exchange rates.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Derivatives risk</b> — Derivative contracts, such as options, futures, and swaps, may involve additional expenses (such as the payment of premiums) and are subject to significant loss if a security, or a securities index to which a derivative contract is associated, moves in the opposite direction from what the portfolio manager anticipated. Derivative contracts are also subject to the risk that the counterparty may fail to perform its obligations under the contract due to financial difficulties (such as a bankruptcy or reorganization).</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Mortgage-backed and asset-backed securities risk</b> — The risk that the principal on mortgage-backed or asset-backed securities may be prepaid at any time, which will reduce the yield and market value.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Prepayment risk</b> — The risk that the principal on a bond that is held by a portfolio will be prepaid prior to maturity at a time when interest rates are lower than what that bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Government and regulatory risk</b> — The risk that governments or regulatory authorities have, from time to time, taken or considered actions that could adversely affect various sectors of the securities markets.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> <b>Valuation risk</b> — The risk that a less liquid secondary market may make it more difficult for a fund to obtain precise valuations of certain securities in its portfolio.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> How has Delaware Core Plus Bond Fund performed? </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the 1-, 5-, and 10-year or lifetime periods compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how it will perform in the future. The returns reflect expense caps in effect during certain of these periods. The returns would be lower without the expense caps. You may obtain the Fund's most recently available month-end performance by calling 800 523-1918 or by visiting our website at <u>delawareinvestments.com/performance.</u></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">On January 31, 2007, the Fund's investment objective and strategy changed from seeking high current income by investing primarily in U.S. government debt obligations to seeking maximum long-term total return by investing in U.S. investment grade bonds, corporate junk bonds, and foreign bonds.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> Year-by-year total return (Class A) </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"> As of September 30, 2012, the Fund's Class A shares had a calendar year-to-date return of 5.36%. During the periods illustrated in this bar chart, Class A's highest quarterly return was 8.30% for the quarter ended September 30, 2009 and its lowest quarterly return was -3.49% for the quarter ended September 30, 2008. The maximum Class A sales charge of 4.50%, which is normally assessed when you purchase shares, is not reflected in the highest/lowest quarterly returns or in the bar chart. If this fee were included, the returns would be less than those shown. The average annual returns in the table below do include the sales charge.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;"><b> Average annual total returns for periods ended December 31, 2011 </b></p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax-deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts (IRAs). The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the periods presented and do not reflect the impact of state and local taxes.</p> <div style="display:none">~http://delaware/role/ShareholderFeesDataAAAA column period compact * column rr_ProspectusShareClassAxis compact * row primary compact * row dei_LegalEntityAxis compact delaware_S000003919Member ~</div> 0.045 0 0 0.04 0 0.01 0 0 0 0 <div style="display:none">~ http://delaware/role/OperatingExpensesDataAAAA column period compact * column rr_ProspectusShareClassAxis compact * row primary compact * row dei_LegalEntityAxis compact delaware_S000003919Member ~</div> 0.0055 0.003 0.0033 0.0118 -0.0028 0.009 0.0055 0.01 0.0033 0.0188 -0.0023 0.0165 0.0055 0.01 0.0033 0.0188 -0.0023 0.0165 0.0055 0.006 0.0033 0.0148 -0.0033 0.0115 0.0055 0 0.0033 0.0088 -0.0023 0.0065 <div style="display:none">~ http://delaware/role/ExpenseExampleAAAA column period compact * column rr_ProspectusShareClassAxis compact * row primary compact * row dei_LegalEntityAxis compact delaware_S000003919Member ~</div> 538 781 1044 1794 568 794 1145 1999 268 569 995 2182 117 436 777 1740 66 258 465 1063 <div style="display:none">~ http://delaware/role/ExpenseExampleNoRedemptionAAAA column period compact * column rr_ProspectusShareClassAxis compact * row primary compact * row dei_LegalEntityAxis compact delaware_S000003919Member ~</div> 168 569 995 1999 168 569 995 2182 <div style="display:none">~ http://delaware/role/BarChartDataAAAA column period compact * column rr_ProspectusShareClassAxis compact * row primary compact * row dei_LegalEntityAxis compact delaware_S000003919Member ~</div> 0.0988 0.0209 0.0382 0.0194 0.0301 0.0506 -0.0165 0.1975 0.0788 0.0749 <div style="display:none">~ http://delaware/role/PerformanceTableDataAAAA column period compact * column rr_ProspectusShareClassAxis compact * row primary compact * row dei_LegalEntityAxis compact delaware_S000003919Member ~</div> 0.026 0.0135 0.0166 0.027 0.0569 0.0709 0.0776 0.0784 0.065 0.0481 0.0454 0.0649 0.0671 0.0727 0.0778 0.065 0.053 0.0364 0.0352 0.0517 0.0503 0.0497 0.0609 0.0578 <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in the Fund will increase and decrease according to changes in the value of the securities in the Fund's portfolio.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">After-tax performance is presented only for Class A shares of the Fund.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">After-tax returns are not relevant for shares held in tax-deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts (IRAs).</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the periods presented and do not reflect the impact of state and local taxes.</p> 100000 <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Delaware Investments&#174; Funds. More information about these and other discounts is available from your financial advisor, in the Fund's prospectus under the section entitled &quot;About your account,&quot; and in the Fund's statement of additional information under the section entitled &quot;Purchasing shares.&quot;</p> 4.22 2012-09-30 0.0536 0.083 2009-09-30 -0.0349 2008-09-30 <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">The Fund's past performance (before and after taxes) is not necessarily an indication of how it will perform in the future.</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">800 523-1918</p> <p style="font-size:12;padding-top:2;padding-bottom:0;padding-left:0;">delawareinvestments.com/performance</p> As of September 30, 2012, the Fund's Class A shares had a calendar year-to-date return of 5.36%. highest quarterly return was 8.30% for the quarter ended September 30, 2009 lowest quarterly return was -3.49% for the quarter ended September 30, 2008 (lifetime: 6/2/03-12/31/11) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge (CDSC) of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth years, 1.00% during the sixth year, and 0% thereafter. Class C shares redeemed within one year of purchase are subject to a 1.00% CDSC. The Fund's investment manager, Delaware Management Company (Manager), is contractually waiving its investment advisory fees and/or paying expenses (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) to the extent necessary to prevent total annual fund operating expenses from exceeding 0.65% of the Fund's average daily net assets from November 28, 2012 through November 28, 2013. The Fund's distributor, Delaware Distributors, L.P. (Distributor), has also contracted to limit the Class A and Class R shares' 12b-1 fees to no more than 0.25% and 0.50%, respectively, of its average daily net assets from November 28, 2012 through November 28, 2013. These waivers and reimbursements may only be terminated by agreement of the Manager and the Distributor, as applicable, and the Fund. Additionally, the Fund's Class A shares are subject to a blended 12b-1 fee of 0.10% on all shares acquired prior to June 1, 1992, and 0.30% on all shares acquired on or after June 1, 1992. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board.