N-CSR 1 miminmif4197541-ncsr.htm N-CSR

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: 811-06569
   
Exact name of registrant as specified in charter: Ivy Funds
   
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: March 31
   
Date of reporting period: March 31, 2023

 

Item 1. Reports to Stockholders

Annual report

Equity funds

Delaware Ivy Core Equity Fund

Delaware Ivy Large Cap Growth Fund

Delaware Ivy Mid Cap Growth Fund

Delaware Ivy Mid Cap Income Opportunities Fund

Delaware Ivy Small Cap Growth Fund

Delaware Ivy Smid Cap Core Fund
(formerly, Delaware Ivy Small Cap Core Fund)

Delaware Ivy Value Fund

Fixed income funds

Delaware Ivy Core Bond Fund
(formerly, Delaware Ivy Securian Core Bond Fund)

Delaware Ivy Global Bond Fund

Delaware Ivy High Income Fund

Delaware Ivy Limited-Term Bond Fund

Delaware Ivy Municipal Bond Fund

Delaware Ivy Municipal High Income Fund

Global / international equity funds

Delaware Global Value Equity Fund
(formerly, Delaware Ivy Global Equity Income Fund)

Delaware Ivy Global Growth Fund

Delaware Ivy International Core Equity Fund

Delaware Ivy International Value Fund

Delaware Ivy Systematic Emerging Markets Equity Fund
(formerly, Ivy Emerging Markets Equity Fund)

Multi-asset fund

Delaware Ivy Managed International Opportunities Fund

March 31, 2023

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.

 

Table of contents

Portfolio management reviews   1
Performance summaries   44
Disclosure of Fund expenses   105
Security type / sector / country allocations and top 10 equity holdings   111
Schedules of investments   131
Statements of assets and liabilities   200
Statements of operations   210
Statements of changes in net assets   220
Financial highlights   240
Notes to financial statements   351
Report of independent registered public accounting firm   406
Other Fund information   408
Board of trustees and officers addendum   410

Experience Delaware Funds by Macquarie®

Macquarie Asset Management (MAM) is a global asset manager that aims to deliver positive impact for everyone. MAM Public Investments traces its roots to 1929 and partners with institutional and individual clients to deliver specialist active investment capabilities across global equities, fixed income, and multi-asset solutions using a conviction-based, long-term approach to investing. In the US, retail investors recognize our Delaware Funds by Macquarie family of funds as one of the oldest mutual fund families.

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) is the asset management division of Macquarie Group. MAM is a full-service asset manager offering a diverse range of products across public and private markets including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and asset finance. The Public Investments business is a part of MAM and 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 ABN 46 008 583 542 ("Macquarie Bank"), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

The Funds are governed by US laws and regulations.

This annual report is for the information of Delaware Global Value Equity Fund, Delaware Ivy Core Equity Fund, Delaware Ivy Core Bond Fund, Delaware Ivy Global Bond Fund, Delaware Ivy Global Growth Fund, Delaware Ivy High Income Fund, Delaware Ivy International Core Equity Fund, Delaware Ivy International Value Fund, Delaware Ivy Large Cap Growth Fund, Delaware Ivy Limited-Term Bond Fund, Delaware Ivy Managed International Opportunities Fund, Delaware Ivy Mid Cap Growth Fund, Delaware Ivy Mid Cap Income Opportunities Fund, Delaware Ivy Municipal Bond Fund, Delaware Ivy Municipal High Income Fund, Delaware Ivy Small Cap Growth Fund, Delaware Ivy Smid Cap Core Fund, Delaware Ivy Systematic Emerging Markets Equity Fund, and Delaware Ivy Value Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.

Unless otherwise noted, views expressed herein are current as of March 31, 2023, 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.

© 2023 Macquarie Management Holdings, Inc.

 

Portfolio management reviews
Delaware Global Value Equity Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Global Value Equity Fund (Class I shares) 1-year return +5.99%
Delaware Global Value Equity Fund (Class A shares) 1-year return +5.75%
MSCI World Index (net) (benchmark) 1-year return -7.02%
MSCI World Index (gross) (benchmark) 1-year return -6.54%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Global Value Equity Fund, please see the table on page 44.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 46 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 total return through a combination of current income and capital appreciation.

Significant Fund event

At a meeting on July 19, 2022, the shareholders of Delaware Global Value Equity Fund (formerly, Delaware Ivy Global Equity Income Fund) approved an amendment to its fundamental investment restriction related to industry concentration and a change in its diversification status. These changes went into effect on July 29, 2022.

Market review

Central bank rhetoric started to change as of late 2021. Nervousness spread across markets as inflation, liquidity crunches, and higher interest rates, combined with geopolitical tensions and Russia's invasion of Ukraine in February 2022, raised investor concerns. Several times during 2022, however, the stock market breathed a sigh of relief as hopes rose that the US central bank would soon start to lower interest rates.

Strongly rising inflation resulted in large interest rate increases, particularly in the US, but also in Europe, from historically low levels. Bonds have returned as a viable alternative to stocks. At the same time, interest rate increases mean that price-to-equity (P/E) multiples in the stock market fell during 2022. This was also reflected in the pricing of certain parts of the stock market, which brought back memories of the bursting of the dot-com bubble at the start of this millennium.

But gravity always strikes, and 2022 brought about a solid wake-up call for global investors.

Despite significant uncertainties, the stock market found support during the first quarter of 2023, as the global economy seemed to hold up better than expected, at least for the time. The reopening of China after its zero-COVID policy was lifted also added to optimism.

Furthermore, lower oil prices eased inflationary pressure and provided hope that the cycle of interest rate hikes would soon come to an end.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Global Value Equity Fund posted a positive return and outperformed its benchmark, the MSCI World Index. The Fund’s Class I shares gained 5.99%. The Fund’s Class A shares advanced 5.75% at net asset value (NAV) and declined 0.36% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark fell 7.02% (net). For complete, annualized performance of Delaware Global Value Equity Fund, please see the table on page 44.

The bottom-up approach the investment manager follows seeks to identify what are viewed as undervalued quality companies that have the potential to provide solid relative capital in challenging times. With the difficult market environment during the year, this worked well for the portfolio. The defensive and high-quality characteristics of the companies in the Fund shielded investors to a large extent against the market’s havoc.

The annual outperformance resulted from both sector allocation and security selection. The Fund’s overweight position in the consumer staples sector and solid stock selection in both the consumer staples and consumer discretionary sectors contributed to relative returns. Not investing in the energy sector was a drag on relative performance.

Among individual holdings, two of the largest contributors to performance were the French caterer and on-site food-service solution provider Sodexo, and Merck & Co. Inc., an American multinational pharmaceutical company.

Sodexo finally regained the business it had lost as a result of COVID-19, a great relief for investors. In 2022, revenues grew by

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Portfolio management reviews

Delaware Global Value Equity Fund

double digits organically and profit margins improved, signifying positive developments. Sodexo is focusing on developing its food service to improve working conditions for employees, a nod to the ongoing labor shortage. Additionally, the company plans to be more selective and limit its activity to 50 countries. Going forward, Sodexo expects margins to be higher than they were pre-COVID-19.

Merck & Co. has surprised the stock market positively several times during 2022. The latest news from the company shows successful trials treating pulmonary hypertension, a type of high blood pressure that affects the arteries in the lungs and the right side of the heart.

Conversely, two of the largest detractors from performance during the fiscal year were Fresenius Medical Care AG & Co., a German healthcare company that provides kidney dialysis services, and adidas AG, a world leader in the design, manufacturing, and marketing of sports equipment and articles.

We believe the world's leading kidney dialysis company, Fresenius Medical Care, was in a perfect storm together with its competitors. COVID-19 has reduced the patient population, slowed clinic traffic, and increased patient costs. The industry works on a contract basis, and the final payors and prices for dialysis services have yet to be adjusted higher to reflect inflation. In essence, Fresenius Medical Care must absorb these higher costs until prices are renegotiated.

A challenging trading environment in China, caused by COVID-19 restrictions and industry-wide supply chain disruptions, hurt adidas's shares. In 2022, the company lowered its outlook a few times. China is a major driver behind the company’s growth challenges, as China is a profitable market for adidas as well as an important sourcing market. In effect, the zero-COVID policy in China has significantly affected adidas and overshadowed the company’s positive attributes. Despite the current challenges, we are still confident that adidas will remain a very strong brand and will be able to restore profitability relatively fast.

We believe the long-term investment case and return potential is still intact for both companies. Therefore, we continue to hold them in the Fund.

During the fiscal year, the Fund used foreign exchange currency contracts to secure the US dollar value of securities between trade date and settlement date. These did not have a material impact on performance (that is, more than 0.50 percentage points).

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Portfolio management reviews
Delaware Ivy Core Bond Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Core Bond Fund (Class I shares) 1-year return -4.61%
Delaware Ivy Core Bond Fund (Class A shares) 1-year return -4.91%
Bloomberg US Aggregate Index (benchmark) 1-year return -4.78%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Core Bond Fund, please see the table on page 47.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 49 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 current income consistent with preservation of capital.

Significant Fund event

On March 3, 2022, the Board of Trustees of the Ivy Funds (“Board”) approved the termination of the Sub-Advisory Agreement between Delaware Management Company (the “Manager” or “DMC”), and Securian Asset Management, Inc. as it relates to the Fund. In addition, the Board approved the appointment of affiliated sub-advisors of the Manager, Macquarie Investment Management Europe Limited (“MIMEL”), Macquarie Investment Management Austria Kapitalanlage AG (“MIMAK”), and Macquarie Investment Management Global Limited (“MIMGL”) to provide portfolio management and trading services, as well as to share investment research and recommendations, to the Fund. Further, the Board approved changes to certain of the Fund’s investment policies, and approved a name change, with all such changes to take effect on or about July 31, 2022 (the “Effective Date”). Please see the prospectus for more information.

Market review

The fiscal year ended March 31, 2023, saw a dizzying number of geopolitical, monetary policy, financial, and economic events. The period started with the backdrop of Russia’s invasion of Ukraine, the launch of unconventional economic weapons by the West, and a second shock to supply chains via agricultural and energy routes. To complicate things, on the journey to managing escalating inflation not seen since the early 1980s era of US Federal Reserve Chair Paul Volcker, the Federal Open Market Committee (FOMC) delivered the second-steepest rate-hiking cycle in recent history, removing liquidity and ultimately playing a role in the banking system tremors of March 2023. While it may be too early to say inflation is in the past, metrics like the inverted yield curve and leading indicators are flashing red for recession risk for calendar 2023, indicating a handoff of risks from inflation to recession.

Policymakers, like investors, are often visited by ghosts of crises past. Events in March 2023 were a reminder that the Fed’s misstep during the time of Chair Volcker is not the only memory to fear. For many, the global financial crisis of 2008 came back into view, as did other unusual phenomena, such as the Long-Term Capital Management (LTCM) crisis of 1998 or the 1987 insurance crash. Regardless of the preferred history book example, the importance of confidence in the financial system came back into focus.

In March, Silicon Valley Bank, a little-known regional bank with an idiosyncratic depositor base and long history of high-quality lending, succumbed to depositor crowd behavior and was taken into receivership by the Federal Deposit Insurance Corporation (FDIC). The event spooked depositors and markets, opening the door to the possibility of a run on banks. At record speed, the Fed put into place a lending facility for US banks to borrow against Treasury and agency mortgage-backed securities (MBS) at par, effectively insuring deposits. Additionally, in Europe, the Swiss regulator engineered an arrangement between UBS and Credit Suisse to prevent a confidence crisis at Credit Suisse from becoming a systemic issue.

Despite the temporary market disruption, central banks remained focused on fighting inflation. Even with the backdrop of a bank confidence crisis, the European Central Bank (ECB) opted to raise interest rates by 0.50 percentage points to 3.50%, and the FOMC increased rates by another 0.25 percentage points in March to a range of 4.75% to 5.00%, pursuing a tightrope walk of remaining both focused on inflation and committed to financial stability. So far, markets have seemed willing to accept that the worst has been averted. Even as interest rate volatility remains near all-time highs, the compensation for credit risk, with few exceptions, still fails, in our view, to fully reflect the likelihood of a recession.

With a backdrop of unhinged inflation and resilient labor markets, all but one of the interest rate hikes during this cycle took place during this fiscal year – the US federal funds rate increased from near zero to a range of 4.75% to 5.00% by fiscal year end. While the yield curve inverted somewhat predictably, with long-term interest rates rising less than short-term rates, the fiscal year saw a significant

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Portfolio management reviews

Delaware Ivy Core Bond Fund

decline in bond market returns and drastically higher consumer lending rates, including for auto loans and mortgages.

The US dollar maintained its strength for most of the year, while the euro fluctuated around parity with the dollar. Despite crowded calls that the dollar may have seen its peak strength, the shift from rate cycle beneficiary to safe-haven asset by March 2023 averted the shift in the dollar era.

Against this highly volatile backdrop, credit markets behaved reasonably well in 2022, albeit while sustaining broad losses largely owing to the increase in interest rates. However, higher yields were viewed as an opportunity for many fixed income investors and may have provided important technical support at a time when central banks across most of the developed world were raising short-term rates. Indeed, even despite the Silicon Valley Bank default and banking sector concerns, credit premiums have yet to match the highs seen during other stress periods. Looking forward, the silver lining for fixed income investors may be manifest in the higher yields that offer an income buffer to further price volatility.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Core Bond Fund posted a negative return but slightly outperformed its benchmark, the Bloomberg US Aggregate Index which also declined. The Fund’s Class I shares declined 4.61%. The Fund’s Class A shares fell 4.91% at net asset value and fell 9.21% at maximum offer price. These figures reflect all distributions reinvested. For the same period, the Fund’s benchmark declined 4.78%. Complete annualized performance for Delaware Ivy Core Bond Fund is shown in the table on page 47.

Following is a discussion of the Fund’s performance during the period from April 1, 2022, to July 31, 2022, when Securian Asset Management, Inc. was the Fund’s sub-advisor.

Security selection in non-agency collateralized mortgage obligations (CMOs), industrials, commercial mortgage-backed securities (CMBS), financials, and asset-backed securities (ABS) were the main performance detractors. In particular, the Fund’s positions in Enterprise Products Partners LP performed poorly, despite the overall strength in energy prices. Other notable underperforming positions were Viatris Inc. and International Ltd. The Fund’s overweight positions in utilities, financials, and ABS also detracted from performance. Conversely, the Fund benefited from its interest rate exposure, which averaged less than that of the benchmark during the period. The Fund also benefited from its overweight positions in the industrials sector, as well as in cash, and positive security selection in the utilities sector.

We continued to sell credit positions during the period on concerns about rising market volatility and in response to steady outflows from the Fund. The Fund’s exposure to corporate bonds ended the period at about 41.4% on July 31, 2022, down about 1.4 percentage points from the beginning of the fiscal year, compared with the index weighting of 24%. The Fund’s largest overweight positions by market weight were in electric utilities, transportation, energy, banks, and insurance. The Fund’s energy exposure remained in midstream pipeline companies and refiners, with no direct exposure to volatile energy prices. The largest underweight positions from a market-weight perspective in the corporate space were in information technology, capital goods, basic industry, and communications.

The Fund was overweight non-agency MBS, ABS, and CMBS, and underweight agency MBS. We remained comfortable with the Fund’s overweight positions in the consumer-facing sectors of ABS, such as in the single-family rental space, and non-agency MBS as we believe a healthy home-equity cushion as well as a healthy borrowing base should continue to support these structures.

The Fund’s overall exposure to interest rates in terms of duration changed little during the period. As of July 29, 2022, we thought the Fund remained positioned to potentially benefit from rising rates relative to its benchmark. The Fund utilized Treasury futures contracts to help hedge interest rate exposures across the curve. The use of these futures contributed very little to the Fund’s performance during the period, however.

Following is a discussion about performance during the period from August 1, 2022, when the firm’s current portfolio management team began serving as the investment manager for the Fund, to March 31, 2023.

Investors widely expected that the Fed would be active throughout most of the fiscal year. That expectation became reality when the Fed began raising rates in March 2022, just prior to the beginning of this fiscal period, and continued through March 2023 when the federal funds rate reached a range of 4.75% to 5.00%. As cumulative rate hikes rose, investors slowly shifted their focus from inflation risk to recession risk and any unexpected consequences of the rapid liquidity withdrawal.

In managing the Fund, we try to provide, rather than take, liquidity. Liquidity enables us to take advantage of periods of uncertainty. It provides us with the investment flexibility to take advantage of market opportunities as they arise.

Throughout the volatility period of the fiscal year, we increased the Fund’s allocation to dislocated sectors, such as investment grade corporates and MBS, when risk premiums increased amid investor fears. Conversely, we reduced allocations to credit-related securities such as investment grade, high yield, and emerging markets debt,

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when liquidity improved, and risk premiums tightened excessively compared to expectations of higher recession risk.

To manage interest rate risk, we positioned the Fund’s portfolio with a short duration for most of the fiscal year, then shifted to a neutral and long position once 10-year Treasury rates reached 4%. This risk-management approach aided performance during the period that we managed the Fund, along with positioning exposure to maturities that benefited from yield curve flattening.

In addition, our disciplined reduction of the starting underweight to agency MBS as valuations became more attractive contributed to performance, as did our preference for up-in-coupon more recent securities within the sector. The allocation to floating-rate non-agency MBS benefited returns as well since price volatility was absorbed by the significantly higher yields.

Lastly our decision to add to investment grade credit as spreads widened in mid-2022 helped performance for the period the team managed the Fund, as the sector benefited from the lower inflation fears by the start of 2023. Higher-quality industrial securities in particular outperformed as economic strength continued to bolster returns. Airlines such as United Airlines Inc., which we continue to hold, benefited in the environment.

Among performance detractors, the bank sector tremors in the first quarter of 2023 negatively affected the Fund’s modest overweight to certain regional banks. In particular, the exposure to Silicon Valley Bank, which unexpectedly suffered a depositor run and was taken under conservatorship by the FDIC in record time, was the key detractor from performance. We have retained exposure to Silicon Valley Bank securities, as we expect a more beneficial recovery outcome post-bankruptcy than by selling securities at distressed market prices. The high-quality assets available to the holding company offer multiple paths to stronger-than-priced recovery scenarios. In addition, Fund holdings in certain other banks that were caught in the headlines detracted from performance. The Fund’s exposure to senior securities of Citizens Bank N.A., a regional bank, and Credit Suisse AG, eventually taken over by UBS, detracted from performance. Although we reduced the Fund’s exposure in both issuers, we continue to hold positions.

The heightened volatility in risk assets during the period resulted in indiscriminate underperformance for higher-quality securitized issues. As a result, the Fund’s overweight to CMBS detracted from Fund performance for the period that we managed the Fund. The focus on senior structures with ample subordination and fundamentally sound collateral is expected to benefit from an eventual stabilization in volatility, and we continue to hold the overweight with an expectation of opportunistically increasing exposure if weakness persists.

Key risks and opportunities

Investors face complex considerations going forward, from the remaining stress on smaller regional banks to pressure in commercial real estate markets, the possibility of lingering inflation, and the high risk of recession. However, we suggest the landscape may be simplified to something more straightforward: We are in the middle of a risk handoff from inflation to recession after a secular repricing in interest rates, with relatively simple implications.

First, with yields returning to where they were before quantitative easing (QE) monetary policy took hold, bonds seem to be acting like bonds again, featuring historically compelling yields and a return to their inverse correlation with equities, which manifested clearly in the first quarter.

Second, history suggests it may be better to be early than late at turning points in tightening cycles, as yield curve inversions and rising recession risks mean the outlook for longer-term interest rates is quite bright, in our view.

Lastly, transitions don’t usually go smoothly. In our opinion, volatility is likely to remain high; credit spreads, while more attractive than before the tightening cycle, may need to increase further as recession risks take center stage; and market movements may happen rapidly.

We think this is a compelling time for agile active management and bottom-up (bond by bond) security selection as dispersion increases. Value has emerged in certain areas of the market, such as agency MBS and high-quality securitized debt, far from the eye of the storm. Meanwhile, the high-income feature of credit and emerging markets debt, coupled with volatility, may create opportunities down the road. Bonds are bonds again, in our view, and exposure to the asset class is as attractive as we’ve seen in decades. We believe agility and security selection will remain key to navigating the uncertainty.

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Portfolio management reviews

Delaware Ivy Core Bond Fund

During the fiscal year, the Fund used a variety of derivatives, including Treasury futures, options, and credit default swaps. Treasury futures and options were primarily used to manage interest rate risk. Credit default swaps and currency hedges were used to manage credit and foreign exchange (FX) risk through the cycle.

The use of derivatives detracted modestly from the Fund’s performance for the fiscal year.

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Portfolio management reviews
Delaware Ivy Core Equity Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Core Equity Fund (Class I shares) 1-year return -6.46%
Delaware Ivy Core Equity Fund (Class A shares) 1-year return -6.71%
S&P 500® Index (benchmark) 1-year return -7.73%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Core Equity Fund, please see the table on page 50.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 52 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 capital growth and appreciation.

Market review

For the fiscal year ended March 31, 2023, equity markets as measured by the S&P 500 Index declined 7.73%. The worst-performing sectors during the period included real estate, consumer discretionary, and communication services. Energy and consumer staples were the only sectors that appreciated during the period though energy weakened notably in early 2023. Consumer staples provided defensive ballast when investors grew concerned with slowing growth.

The period was characterized by strong, albeit slowing, economic growth and persistent inflation that pushed the US Federal Reserve to continue an aggressive series of rate increases that began in March 2022. During this past fiscal year, growth took on a far different flavor versus the prior period, as consumer spending on goods slowed meaningfully while spending on consumer services like travel and hospitality accelerated following the end of pandemic-related safety measures. Consumer expenditures on technology goods and through online channels were especially weak.

Industrial activity accelerated through much of the period, buoyed by historic tax incentives enacted to encourage onshore semiconductor manufacturing and investments in decarbonization and green energy. The Infrastructure and Jobs Act passed in late 2021 also gave rise to investors’ optimism about industrials.

Equity markets marked a bottom in October 2022 as evidence emerged that inflationary pressures were easing. While September core inflation (excluding food and energy) rose to 6.6%, the October reading dropped to 6.3% and continued to moderate into 2023, ending the fiscal period at 5.5%. Investors took this as a sign that the Fed was near the end of its rate-hike campaign, though inflation remained well above the Fed’s long-term 2% target.

A broader look back at events that transpired during the fiscal year suggests that signs of excessive risk taking by participants returned with vigor, despite every effort by the Fed to slow US economic growth and global policy makers taking similar steps overseas. Bitcoin's strong rally in the first three months of 2023, in conjunction with the aforementioned moves in more growth-oriented information technology consumer discretionary shares (Tesla Inc., NVIDIA Corp., and Meta Platforms Inc.), is indicative of a market that is story driven and somewhat valuation insensitive. The trade higher in the market’s largest companies was also noteworthy during the first quarter of 2023 with the top 10 companies by market capitalization driving approximately 80% of the S&P 500’s gain in the first three months of 2023. The concentration of market returns to just a handful of large companies is even more perplexing when considering that some of these companies have seen significant reductions in near-term earnings growth rates. Tesla, one example, has reduced prices across its product lineup and is now expected to earn far less in 2023 than previously anticipated. Even with the product price reductions, the stock advanced significantly for the first quarter of 2023.

Signs of increased “animal spirits” and the desire to pile-on risk in the equity market are even more perplexing when we consider other events that transpired during the first calendar quarter of 2023, notably failure of two high-profile financial institutions, Silicon Valley Bank and Signature Bank. We have previously written about the most rapid increase in the federal funds rate in any cycle. The period from 2004 to 2006 was somewhat similar as the Fed raised short-term rates by 4.25 percentage points, though it did so over the course of two years as opposed to 4.75 percentage points in one year so far in this tightening cycle.

This affects growth by making durable goods purchases more expensive and by draining liquidity from the banking system. It is the second mechanism that appeared to rapidly take hold. Deposit outflows from US banks are down about $1 trillion from the peak levels reached in April of 2022 (Federal Reserve). The record deposit outflows, even from levels that were elevated from pre-pandemic levels, will likely increase the risk of a more rapid slowdown in economic growth as banks slow lending in response to fewer low-cost deposits.

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Portfolio management reviews

Delaware Ivy Core Equity Fund

We believe that a more rapid slowdown in growth catalyzed by lower bank-lending is something the Fed welcomes to snuff out inflation across the economy.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Core Equity Fund declined, although it outperformed its benchmark, the S&P 500 Index, which also declined. The Fund’s Class I shares fell 6.46%. The Fund’s Class A shares declined 6.71% at net asset value and declined 12.06% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 7.73%. For complete annualized performance of Delaware Ivy Core Equity Fund, please see the table on page 50.

The Fund outperformed the benchmark on a relative basis during the fiscal year. Active return (outperformance) was strongest within the consumer discretionary sector where the Fund’s meaningful underweight compared to the benchmark contributed to relative performance. Stock selection within the healthcare sector also contributed. Somewhat offsetting these benefits, however, was the Fund’s underweight allocation to the top-performing energy sector and its underweight allocation to the consumer staples sector.

Leading contributors to Fund performance during the period included United Rentals Inc., an equipment rental company that benefited from higher rental rates and a robust recovery in non-residential construction activity. The Progressive Corp. also added strongly to performance. Progressive led the insurance industry in recapturing pricing following the loss of profitability during the pandemic when used-car prices and associated repair costs rapidly inflated. Eli Lilly & Co. also contributed significantly on expectations that it will achieve blockbuster status for a new diabetes drug that has ancillary weight-loss benefits.

Blackstone Inc. and Union Pacific Corp. were two of the weakest-performing investments during the period as tighter monetary conditions and reduced freight activity, respectively, weighed on the share price. CME Group Inc. also declined as investors priced in peak financial and interest rate volatility. Given the decline in the overall market, our modest cash holdings were beneficial.

The Fund’s current positioning increasingly reflects more caution with respect to the ultimate impact of a rapid decrease in banks’ willingness to extend credit. We have recently moderated our position sizes and holdings in more economically sensitive equities that do not appear to us to reflect further weakness in growth. We have reduced our weighting of the financial sector several points with sales of The Charles Schwab Corp., Discover Financial Services, Bank of America Corp., and reduced weightings in our alternative investment positions, Blackstone and KKR & Co. Inc. We have also reduced positions in two industrials, Deere & Co. and United Rentals Inc., that we think appear at risk to short-term tightness in lending standards.

Finally, we have reduced our weight in semiconductors, which continues to benefit from easing supply chain pressures but could be susceptible to reductions in demand if critical industrial end markets weaken. At the same time, we have increased position sizes in more defensive companies like hospital HCA Healthcare Inc., auto parts retailer AutoZone Inc., and in consumer staples. One cyclical area where we retain high conviction is in commercial aerospace associated holdings. While recessionary conditions appear more likely in some sectors, commercial aerospace has been in a deep recession with the inability to supply the world’s airlines with planes ordered many years ago. Additionally, safety issues interrupted production of The Boeing Co.’s 737 and 787. Airbus SE and Raytheon Technologies Corp. remain our preferred ways to play increased aircraft production over the next four to five years.

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Portfolio management reviews
Delaware Ivy Global Bond Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)     
Delaware Ivy Global Bond Fund (Class I shares) 1-year return -1.76%
Delaware Ivy Global Bond Fund (Class A shares) 1-year return -2.00%
Bloomberg 1-10 Year Global Aggregate Index Hedged USD (benchmark) 1-year return -1.59%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Global Bond Fund, please see the table on page 53.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 55 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 a combination of current income and capital appreciation.

Market review

Fixed income markets were highly volatile and overall produced poor performance for the year ended March 31, 2023. Over the 12 months, the widely followed Bloomberg Global Aggregate Index Hedged USD returned -3.86%, a vast improvement over the low of -12.1% for the 12 months ended September 30, 2022, but still the worst 12-month return period since the index’s inception outside of the 2022-2023 period. Inflation was the key driver of weakness in the bond market (and broader risk market). Year-over-year US Consumer Price Index (CPI) results continued to accelerate through the second quarter of 2022, peaking at more than 9% in June. In reaction, central banks remained in significant tightening mode, with the US Federal Reserve increasing rates at the fastest pace since the early 1980s. The retreat in inflation in most developed markets (though still highly elevated) in the fourth quarter of 2022 and first quarter of 2023 was fuel for a rebound in both bond and risk-market pricing. Russia’s war in Ukraine continued to have financial market effects for much of the year, most notably through summer 2022 as investors feared the impact of energy shortages on European and global growth. Financial issuers came under severe pressure in March 2023 after the failure of Silicon Valley Bank and the forced takeover of Credit Suisse by UBS, though by month end the immediate market panic had subsided, replaced with expectations of medium-term tightening in lending conditions, impacting the broader economy.

Inflation was the single largest factor influencing market sentiment over the past year, with progress in the fight against price increases the key determinant of performance. US headline CPI reached a peak of 9.1% in June 2022, before falling back to 5% year over year by March 2023. The drivers of inflation have broadened materially, from initially in used cars, semiconductors, and so on, to a broad-based impact on goods, services, and rents. But markets have taken significant solace from the clear improvement, with expectations that inflation can continue to gradually decline (albeit likely in a volatile manner). Central bank tightening in reaction to inflation was aggressive: the Fed increased rates by 4.50 percentage points during the year ended March 2023, and the European Central Bank increased rates by 3.50 percentage points (moving away from negative rate settings for the first time since 2014). The Bank of Japan was the only major developed central bank to barely budge on monetary policy, with no rate hikes and only a modest widening of its yield curve control corridor for 10-year Japanese government bonds. Rate hikes and inflation wreaked havoc on government bond yields. Yields on the 10-year US Treasury rose from 2.34% on March 31, 2022, to a peak of 4.24% in October before rebounding to 3.47% by the end of March 2023. The calendar year 2022 made history for having the worst government bond returns in at least the last 100 years.

Credit markets were highly volatile, reflecting many of the same concerns. The average credit spread on US investment grade corporates traded above 1.60% on three separate occasions and had three full round trips of more than 0.3 percentage points from peak to trough each time – exceptional volatility for a high-quality asset class. Much of 2022’s volatility centered on inflation and the perceived need for a significant economic slowdown to cool prices.

The lingering financial market impacts of Russia’s ongoing war in Ukraine also affected markets. Fears of a severe energy shortage in Europe drove significant underperformance in that region’s assets in the second and third quarters of 2022. The euro fell more than 13% versus the US dollar, and European investment grade corporates widened versus their US counterparts. But with a relatively mild winter, and significant scrambling for seaborne liquefied natural gas (LNG) supplies, much of the underperformance reversed in the second half of the year.

Financial industry turmoil was the key development late in the 12-month period, initially with the sudden collapse of Silicon Valley Bank in the US. That was followed a week later by the rescue deal in which UBS agreed to purchase rival Credit Suisse, and the unprecedented write-down of Credit Suisse’s additional tier 1 (AT1) securities to zero – without a bankruptcy or full equity write-down. This turbulence drove broad market weakness, but particularly in

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Portfolio management reviews

Delaware Ivy Global Bond Fund

financials, with European banks and US regional banks performing poorly. The broader market impact had mostly faded by month end, with the lingering effects most likely to be lower lending and general tightening of financial conditions for bank borrowers in the medium term.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Global Bond Fund declined and underperformed its benchmark, the Bloomberg 1-10 Year Global Aggregate Index Hedged USD, which also declined. The Fund’s Class I shares fell 1.76%. The Fund’s Class A shares declined 2.00% at net asset value and declined 6.40% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark fell 1.59%. For complete, annualized performance of Delaware Ivy Global Bond Fund, please see the table on page 53.

A mix of factors drove the underperformance: outright duration overweights early in the 12-month period were a key detractor, as were modest non-US-dollar currency positions and security selection within investment grade credit due to an overweight to US regional banks. This was mostly offset by duration curve positioning (favoring longer-dated versus short-maturity exposures), underweight positions in agency mortgage-backed securities (MBS), which materially underperformed most other sectors, and security selection within emerging markets.

Fund positioning

We added duration in the Fund’s portfolio throughout the year, from a low of just under 4 years in early 2022 to a peak of more than 5.75 years in mid-March 2023. We viewed increasingly higher yields as attractive against a backdrop of peaking price pressures in the fourth quarter of 2022 and the first quarter of 2023, and a more difficult economic outlook. The Fund’s duration was weighted to US dollar and Australian dollar bonds, but European duration was also added as yields in that market rose well above zero. The US dollar and Australian dollar positions are aligned with our view these markets offer the most compelling outlook: higher yields, but also expectations that these economies will cool relatively faster – particularly in Australia, where most mortgages are floating rate and so interest rate increases flow through very quickly to consumer incomes.

The Fund gradually added to holdings of investment grade corporate credit through the second and third quarters of 2022, with volatile and wide credit spreads offering attractive entry points for increasing exposure. The Fund used spread widening in the fourth quarter of 2022 and early first quarter of 2023 to reduce some exposure and add credit hedges to the portfolio, which had the benefit of reducing volatility and adding to returns in the March volatility. We added back some of the Fund’s investment grade allocations in late March, reflecting overall wider spreads.

The Fund’s currency exposures remain heavily weighted to the US dollar, as we judge the US economy to be stronger than most global peers, and the US dollar is likely to benefit both from safe-haven flows in a risk-off environment or from relatively higher yields in a scenario of stickier-than-expected inflation.

During the fiscal year, the Fund’s use of swaps, futures, foreign exchange currency positions, and options had a limited effect. Overall, derivatives were immaterial to the Fund’s performance during the fiscal year.

Our overall stance of gradually increasing duration and finding pockets of value in credit markets to add to the portfolio is in line with our expectation for continued volatility in fixed income markets and an increasing focus on global growth. The Fund has significant ability to increase its credit holdings, and we will look to do so as potential opportunities emerge.

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Portfolio management reviews
Delaware Ivy Global Growth Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Global Growth Fund (Class I shares) 1-year return -4.24%*
Delaware Ivy Global Growth Fund (Class A shares) 1-year return -4.48%
MSCI ACWI Index (net) (benchmark) 1-year return -7.44%
MSCI ACWI Index (gross) (benchmark) 1-year return -6.96%

Past performance does not guarantee future results.

*Total return for the report period presented in the table differs from the return in “Financial highlights.” The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in “Financial highlights” is calculated in the same manner but also takes into account certain adjustments that are necessary under US generally accepted accounting principles required in the annual report.

For complete, annualized performance for Delaware Ivy Global Growth Fund, please see the table on page 57.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 59 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 growth of capital.

Market review

Fiscal 2023 marked one of the great paradigm shifts for global markets and economies in recent history. A confluence of events, including fallout from pandemic spending and loose monetary policy, catalyzed what had been years in the making.

Major central bank policy shifts, inflation, changes to global supply chains, the end of inexpensive Russian energy for Europe, and labor shortages created broad-based asset price declines with few exceptions. Equities fell along with bond markets, which typically provide protection, as investors scrambled to face what we believe will be a new reality.

Years of lower interest rates and quantitative easing finally came to roost in the form of inflation. Perpetuating inflationary pressure, the war in Ukraine drove increases to energy and food prices, particularly in Europe. As a result of Russia’s actions, Western nations implemented sanctions against Russia. This all but cut off Russia’s ability to supply natural gas, oil, wheat, and other commodities to most of the world. In addition, rising home prices and rapid wage growth became concerning. Home affordability was historically low and labor shortages along with demographic shifts created a difficult task for central banks.

In response, the US Federal Reserve took action through a series of interest rate hikes. Central banks around the world soon followed. The Fed and the European Central Bank increased rates throughout the year. Europe abandoned negative rate policy after nearly a decade. With higher rates, market valuations quickly declined. Extremely high valuations, afforded by longer-duration growth companies in a low-rate environment, were hit particularly hard. US regional banks were caught with liability mismatches and mark-to-market losses in their Treasury holdings, all stemming from the rapid rate increases. This caused a run on several banks and turmoil in the system. At the same time, one of the oldest Swiss financial institutions, Credit Suisse, had to be rescued in a coordinated effort between UBS and Swiss central bank.

China maintained its zero-COVID policy throughout most of calendar year 2022 before finally reopening in December when the pressure from its population and weakening economy became too great. With the easing of this overhang, economic activity accelerated.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Global Growth Fund declined, although it outperformed its benchmark, the MSCI All Country World Index, which also declined. The Fund’s Class I shares fell 4.24%. The Fund’s Class A shares declined 4.48% at net asset value and declined 9.97% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 7.44% (net). For complete annualized performance of Delaware Ivy Global Growth Fund, please see the table on page 57.

The Fund posted a negative return for the fiscal year but outperformed its benchmark. The largest contribution to relative performance came from stock selection in the consumer discretionary, communication services, and healthcare sectors while stock selection in the consumer staples sector was the largest detractor. Geographically, stock selection in the US and India contributed most while selection in Japan and Germany was a drag

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Portfolio management reviews

Delaware Ivy Global Growth Fund

on performance. Sector and country exposure is primarily a result of our bottom-up (stock-by-stock) process.

On an individual stock basis, Deutsche Telekom AG, a large German telecommunications company, and Darden Restaurants Inc., a US restaurant operator best known for its Olive Garden franchise, were the leading contributors. Deutsche Telekom has continued to execute and benefit from the strength of its US subsidiary, T-Mobile US Inc. Deutsche Telekom appears to be ahead of schedule in bringing its ownership stake in T-Mobile to more than 50%. This should help enable the firm to generate additional cash, which it plans to return to shareholders through dividends. T-Mobile is gaining share in a competitive US wireless environment and German operations are growing. Darden has grown significantly post the COVID reopening, as diners were eager to eat out again. It has also been able to pass on inflationary pressures and maintain profit margins in the face of labor cost increases and higher raw material expenses.

The largest detractors from performance were First Republic Bank, a US-based regional bank, and Alphabet Inc., the US-based internet company and parent of Google. First Republic was swept up in a broad run on regional bank deposits. Historically, it has been a well-managed bank but was quickly put under pressure after several peers in similar geographies showed signs of collapsing. While we believe First Republic had a different risk profile, many depositors withdrew their money, and we were no longer able to handicap the risk of owning. We exited the position after the initial pullback, but before the major selloff in shares. Alphabet fell under pressure when advertising spending, a major source of revenue, slowed across the industry as advertising is highly sensitive to economic cycles. The stock also fell along with other large benchmark growth names sensitive to higher interest rates. We exited our position.

During the fiscal year, the Fund’s use of foreign exchange (FX) currency positions had a limited effect. Overall, derivatives were immaterial to the Fund’s performance during the fiscal year.

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Portfolio management reviews
Delaware Ivy High Income Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)     
Delaware Ivy High Income Fund (Class I shares) 1-year return -5.79%
Delaware Ivy High Income Fund (Class A shares) 1-year return -6.02%
ICE BofA US High Yield Constrained Index (benchmark) 1-year return -3.58%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy High Income Fund, please see the table on page 60.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 62 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 total return through a combination of high current income and capital appreciation.

Market review

Throughout the fiscal year ended March 31, 2023, high yield bond markets were volatile as investors responded to the US Federal Reserve and its efforts to contain inflation via an aggressive series of rate hikes that began March 17, 2022, just prior to the start of the Fund’s12-month fiscal period.

Even though the Fed’s first increase was small, just 0.25 percentage points, it was the first increase in more than three years, and it seemed to set investors on edge. Coming on the heels of the Russian invasion of Ukraine the month before, consumer sentiment declined and investors worried about growth profiles going forward as speculation about a forthcoming recession, its depth and length, dominated financial discussions. At the same time, inflation, apparently unaffected by the Fed’s action, continued to rise. Through the first three months of the fiscal period, high yield markets declined 10.0%, setting the stage for a difficult 12 months.

Volatility set in as summer began. Sentiment picked up in July. By that time, the Fed had hiked rates in both May and June, by 0.50 and 0.75 percentage points, respectively. Investors, clinging to the belief that further hikes would be lower and slower, pushed Treasury yields lower by 80 basis points (one basis point is a hundredth of a percentage point). High yield markets advanced 6%. The Fed operated from a different playbook, however, and continued to raise rates another 0.75 percentage points in both late July and September. The high yield market sold off, ending up essentially unchanged for the second fiscal quarter.

High yield markets see-sawed for much of the remainder of the 12-month period, advancing in October and November before declining in December. High yield bonds posted strong gains in January 2023 before receding somewhat in February. Virtually all the markets’ movements were attributable to the Fed’s actions and inflation data, which began to improve, showing signs of easing as 2023 began. Only in March, the final month of the fiscal year, did the narrative shift, when two US regional banks – Silicon Valley Bank and Signature Bank – failed due to rising interest rates that had adversely affected its balance sheet. The banks’ failure set off a small panic that rippled through the banking system. Equity markets responded as expected, shedding earlier gains, but the high yield market rallied, gaining 1.1% in March. The gains were uneven, however, with BB-rated credits significantly outperforming B-rated credits, up about 0.5%, and CCC-rated credits, which declined as investors sought quality.

Overall, the high-yield market struggled throughout the fiscal year to overcome its opening-month loss. Though the market made progress, it finished the period with an overall decline of 3.58%.

During the fiscal year, the broadcasting, telecommunications, and cable sectors were the leading underperformers in the Fund’s benchmark, the ICE BofA US High Yield Constrained Index. Investors’ concern with the onset of a recession weighed heavily on the broadcasting sector, which suffers slow growth and a loss of advertising revenue in such a scenario. Additionally, these three sectors typically have longer-dated securities with some duration. So, with the upward move in rates, fundamentals softened and bond prices declined. Recession fears also led to a decline in the retail sector as investors became concerned that consumer spending would slow.

Energy, paper and packaging, and diversified media all outperformed within the benchmark during the fiscal year. Oil prices spiked following Russia’s invasion of Ukraine and natural gas prices were fairly strong during the period. Paper and packaging, running the gamut from paper to plastic bags, is diversified and resilient, and its operators typically have strong balance sheets. Compared with broadcasting, diversified media has relatively little advertising exposure, and has the potential to perform well in a recessionary environment.

Source: Bloomberg, unless noted otherwise.

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Portfolio management reviews

Delaware Ivy High Income Fund

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy High Income Fund declined, underperforming its benchmark, the ICE BofA US High Yield Constrained Index, which also declined. The Fund’s Class I shares declined 5.79%. The Fund’s Class A shares fell 6.02% at net asset value and fell 10.28% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 3.58%. For complete annualized performance of Delaware Ivy High Income Fund, please see the table on page 60.

The health services sector was the most significant detractor from the Fund’s relative performance during the fiscal year, principally due to its position in dialysis provider U.S. Renal Care Inc. The company underwent a leveraged buyout in 2019 and has since had a highly leveraged balance sheet. The business suffered during the pandemic and has not bounced back. On top of that, labor costs have risen dramatically. The company is in trouble, and we think it is likely headed for a restructuring. We continue to hold it in the Fund.

Wesco International Inc. is an aerospace defense contractor that detracted from the Fund’s performance during the fiscal year. The company provides distribution services for the defense industry. It has a highly levered balance sheet and sits at the bottom of the capital structure. With one balance sheet restructuring already behind it, Wesco is generating insufficient cash flow and its maturity date is next year. With a refinancing unlikely due to poor fundamentals, Wesco is another company facing a likely restructuring.

Similarly, satellite telecommunications company Ligado Networks LLC also appears to be running out of cash. Ligado owns satellite spectrum assets that the FCC approved but the Defense Department subsequently blocked due to potential interference with global positioning satellite (GPS) systems. With no resolution in sight, the company is unable to profit from its assets and it, too, appears headed for restructuring.

On the positive side of the ledger, the Fund outperformed in the retail sector, on the strength of both security selection and an underweight relative to the benchmark. The Fund has a bias toward high-quality retailers, which performed better in a difficult environment.

The Fund also performed well in the leisure sector. New Cotai LLC owns a gaming property in Macau called Studio City. During the pandemic, the company restructured its balance sheet, resulting in the Fund owning some equity and equity-linked securities. With the reopening of China, allowing people to resume travel and gaming, those securities significantly outperformed. Other leisure companies that performed well include cruise line Royal Caribbean Cruises Ltd.

In the technology sector, Entegris Inc. significantly contributed to performance during the fiscal period. The company provides critical components used in the manufacturing of semiconductors. Although it has solid fundamentals, it nonetheless traded down during the pandemic and through subsequent supply chain issues. Entegris has a strong balance sheet and is rated BB. We purchased the credits at a favorable price and, with the reopening of China and the easing of the supply chain bottleneck, the bonds have performed well. Overall, we did well in the technology sector as we generally favor software services, which are less susceptible to cyclical swings than hardware.

Throughout the fiscal year, we migrated the Fund to higher-quality credits. We took the Fund’s CCC-rated exposure down from 26% to 16% of the portfolio. We reduced the Fund’s B-rated exposure from about 52% down to 44% and increased the Fund’s BB-rated exposure from about 10% up to 25% of the portfolio. We believe that with these changes we have a more balanced credit-risk profile that has the potential to be less volatile than the portfolio has been in the past. At the same time, we are mindful of the importance of income in a high yield portfolio. Over the long term, income, rather than price appreciation, is the primary source of return.

Similarly, we made changes to the Fund’s sector positioning. We increased energy from about 10% to 13% of the Fund’s portfolio; basic industry from less than 2% to more than 6%; healthcare from 6% to 9%; technology from 5.4% to 7%; and leisure from 4.5% to 7.5%. We cut the Fund’s retail exposure in half from 9% to 4.5%. Services was reduced from about 16% to 6.5% and telecommunications from about 13.5% to about 7%. Also of note, we reduced the Fund’s exposure to bank loans from about 24% down to 13%.

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Portfolio management reviews
Delaware Ivy International Core Equity Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy International Core Equity Fund (Class I shares) 1-year return -0.17%
Delaware Ivy International Core Equity Fund (Class A shares) 1-year return -0.55%
MSCI ACWI ex USA Index (net) (benchmark) 1-year return -5.07%
MSCI ACWI ex USA Index (gross) (benchmark) 1-year return -4.57%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy International Core Equity Fund, please see the table on page 63.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 65 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 capital growth and appreciation.

Market review

Fiscal 2023 marked one of the great paradigm shifts for global markets and economies in recent history. A confluence of events, including fallout from pandemic spending and loose monetary policy, catalyzed what had been years in the making.

Major central bank policy shifts, inflation, changes to global supply chains, the end of inexpensive Russian energy for Europe, and labor shortages created broad-based asset price declines with few exceptions. Equities fell along with bond markets, which typically provide protection, as investors scrambled to face what we believe will be a new reality.

Years of lower interest rates and quantitative easing finally came to roost in the form of inflation. Perpetuating inflationary pressure, the war in Ukraine drove increases to energy and food prices, particularly in Europe. As a result of Russia’s actions, Western nations implemented sanctions against Russia. This all but cut off Russia’s ability to supply natural gas, oil, wheat, and other commodities to most of the world. In addition, rising home prices and rapid wage growth became concerning. Home affordability was historically low and labor shortages along with demographic shifts created a difficult task for central banks.

In response, the US Federal Reserve took action through a series of interest rate hikes. Central banks around the world soon followed. The Fed and the European Central Bank increased rates throughout the year. Europe abandoned negative rate policy after nearly a decade. With higher rates, market valuations quickly declined. Extremely high valuations, afforded by longer-duration growth companies in a low-rate environment, were hit particularly hard. Regional banks in the US were caught with liability mismatches and mark-to-market losses in their Treasury holdings, all stemming from the rapid rate increases. This caused a run on several banks and turmoil in the system. At the same time, one of the oldest Swiss financial institutions, Credit Suisse, had to be rescued in a coordinated effort between UBS and Swiss central bank.

China maintained its zero-COVID policy throughout most of calendar year 2022 before finally reopening in December when the pressure from its population and weakening economy became too great. With the easing of this overhang, economic activity accelerated.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy International Core Equity Fund declined, although it outperformed its benchmark, the MSCI ACWI (All Country World Index) ex USA Index, which also declined. The Fund’s Class I shares fell 0.17%. The Fund’s Class A shares declined 0.55% at net asset value and declined 6.24% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 5.07% (net). For complete annualized performance of Delaware Ivy International Core Equity Fund, please see the table on page 63.

The Fund posted a slight negative return for the year, but outperformed its benchmark, the MSCI ACWI ex USA Index. The largest contribution to relative performance came from stock selection in the financials, energy, and information technology sectors while stock selection in the consumer staples sector was the largest detractor. From a country perspective, stock selection in Canada was a key contributor, primarily due to energy exposure. Sector and country exposure is largely a result of our bottom-up (stock-by-stock) process.

On an individual stock basis, H World Group Ltd., a China-based hotel operator, and Renesas Electronics Corp., a Japanese semiconductor company, were the leading contributors. H World Group stock had been under pressure due to continued COVID-19

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Portfolio management reviews

Delaware Ivy International Core Equity Fund

lockdowns and travel bans in China. We took the opportunity to buy the stock when it was weak, and expectations were low. Ultimately, when China abandoned its zero-COVID policy, the stock recovered in anticipation of a rebound in travel. Renesas Electronics was up after it reported its fourth-quarter results. It saw major gains in autos and the internet of things, both viewed as long-term structural growth opportunities, and announced a significant share buyback program.

The largest detractors from performance were HelloFresh SE, a German food delivery service popular in the US and overseas, and Adidas AG, a German athletic company. HelloFresh had benefited from the pandemic as more people opted for food delivery, but despite continued sales growth, the company has since had to spend more on customer acquisition and marketing expenses. Also, as interest rates climbed, higher growth and higher valuation stocks, including HelloFresh, pulled back more than the market. We continue to own HelloFresh as we believe the company will successfully convert customers into its subscription model and return to positive cash flow. Adidas fell under pressure when economic instability led to a slowdown in discretionary goods purchasing. Adidas has significant Chinese exposure, which continued to weigh on sales as a result of lockdowns. Heightened inventory likewise put the company at risk of discounting and margin pressure. We sold the stock in anticipation of better opportunities.

During the fiscal year, the Fund’s use of foreign exchange (FX) currency positions had a limited effect. Overall, derivatives were immaterial to the Fund’s performance during the fiscal year.

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Portfolio management reviews
Delaware Ivy International Value Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy International Value Fund (Class I shares) 1-year return +0.58%
Delaware Ivy International Value Fund (Class A shares) 1-year return +0.23%
MSCI EAFE (Europe, Australasia, Far East) Index (net) (benchmark) 1-year return -1.38%
MSCI EAFE (Europe, Australasia, Far East) Index (gross) (benchmark) 1-year return -0.86%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy International Value Fund, please see the table on page 66.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 68 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 capital appreciation.

Market review

Central bank rhetoric started to change as of late 2021. Nervousness spread across markets as inflation, liquidity crunches, and higher interest rates, combined with geopolitical tensions and Russia's invasion of Ukraine in February 2022, raised investor concerns. Several times during 2022, however, the stock market breathed a sigh of relief as hopes rose that the US central bank would soon start to lower interest rates.

Strongly rising inflation resulted in large interest rate increases, particularly in the US, but also in Europe, from historically low levels. Bonds have returned as a viable alternative to stocks. At the same time, interest rate increases mean that price-to-earnings (P/E) multiples in the stock market fell during 2022. This was also reflected in the pricing of certain parts of the stock market, which brought back memories of the bursting of the dot-com bubble at the start of this millennium.

But gravity always strikes, and 2022 brought about a solid wake-up call for global investors. Despite significant uncertainties, the stock market found support during the first quarter of 2023, as the global economy seemed to hold up better than expected, at least for the time. The reopening of China after its zero-COVID policy was lifted also added to optimism. Furthermore, lower oil prices eased inflationary pressure and provided hope that the cycle of interest rate hikes would soon come to an end.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy International Value Fund posted a slight gain, outperforming its benchmark, the MSCI EAFE (Europe, Australasia, Far East) Index, which declined. The Fund’s Class I shares gained 0.58%. The Fund’s Class A shares advanced 0.23% at net asset value (NAV) and declined 5.53% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 1.38% (net). For complete, annualized performance of Delaware Ivy International Value Fund, please see the table on page 66.

The bottom-up approach of the investment manager seeks to identify what are viewed as undervalued quality companies that have the potential to provide solid relative capital protection in challenging times. With the difficult market environment during the year, this worked well for the portfolio. The defensive and high-quality characteristics of the companies in the Fund partly shielded investors against the market’s havoc.

The annual outperformance resulted from sector and security selection. The Fund’s overweight position in the consumer staples sector and its stock selection in communication services and information technology contributed to relative returns. Security selection within healthcare and industrials was a drag on relative performance.

Among individual holdings, two of the largest contributors to performance were the French caterer and on-site food-service solution provider Sodexo and Danish Novo Nordisk, a world-leading diabetes care company.

Novo Nordisk posted strong performance and raised its guidance three times in 2022, growing both sales and earnings by double-digit rates, including some tailwind from a strong US dollar. The company’s key franchises, diabetes (GLP-1) and obesity care show strong growth rates and offer a very attractive combination of large and expanding addressable markets. Novo Nordisk is a leader in both. Novo expanded its leading position in the GLP-1 space with a dominant market share. Obesity care is a big opportunity; globally, more than 760 million people are obese, but today very few are treated.

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Portfolio management reviews

Delaware Ivy International Value Fund

Sodexo finally regained the business it had lost as a result of COVID-19, a great relief for investors. In 2022, revenues grew by double digits organically and profit margins improved, signifying positive developments. Sodexo is focusing on developing its food service to improve working conditions for employees, a nod to the ongoing labor shortage. Additionally, the company plans to be more selective and limit its activity to 50 countries. Going forward, Sodexo expects margins to be higher than they were pre-COVID-19.

Conversely, two of the largest detractors from performance during the fiscal year were Fresenius Medical Care AG & Co., a German healthcare company that provides kidney dialysis services, and adidas AG, a world leader in the design, manufacturing, and marketing of sports equipment and articles.

We believe the world's leading kidney dialysis company, Fresenius Medical Care, was in a perfect storm together with its competitors. COVID-19 has reduced the patient population, slowed clinic traffic, and increased patient costs. The industry works on a contract basis, and the final payors and prices for dialysis services have yet to be adjusted higher to reflect inflation. In essence, Fresenius Medical Care must absorb these higher costs until prices are renegotiated.

A challenging trading environment in China, caused by COVID-19 restrictions and industry-wide supply chain disruptions, hurt adidas's shares. In 2022, the company lowered its outlook a few times. China is a major driver behind the company’s growth challenges, as China is a profitable market for adidas as well as an important sourcing market. In effect, the zero-COVID policy in China significantly affected adidas and overshadowed the company’s positive attributes. Despite the current challenges, we are still confident that adidas will remain a very strong brand and has the potential to restore profitability relatively fast.

We believe the long-term investment case and return potential is still intact for both companies. Therefore, we continue to hold them in the Fund.

During the fiscal year, the Fund used foreign exchange currency contracts to secure the US dollar value of securities between trade date and settlement date. These did not have a material impact on performance.

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Portfolio management reviews
Delaware Ivy Large Cap Growth Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Large Cap Growth Fund (Class I shares) 1-year return -8.99%
Delaware Ivy Large Cap Growth Fund (Class A shares) 1-year return -9.24%
Russell 1000® Growth Index (benchmark) 1-year return -10.90%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Large Cap Growth Fund, please see the table on page 69.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 71 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 growth of capital.

Market review

After posting solid gains of 62.7% and 15.0% during the Fund’s 2021 and 2022 fiscal years, the Russell 1000 Growth Index declined 10.9% in the fiscal year ended March 31, 2023. The measurement period finished on an up note, however, as the index returned 14.4% in the period’s final quarter, the first calendar quarter of 2023. Despite the overall decline and growing uncertainty that characterized the fiscal period, it is important to keep things in perspective. Over the past five years the Russell 1000 Growth Index generated annualized gains of 13.7%, strong performance considering the recent drawdown. Over the past ten years the index posted annualized gains of 14.6%.

While value styles shined during the trailing 12-month period, there were also moments of clarity where investors were drawn back to business quality – profitability, cash flow, and competitive advantage – as a necessary consideration. The market’s hunt for the next “thematic” trade, whether that be peak interest rates, lower inflation, or a US Federal Reserve policy pivot, was not a sustainable and repeatable investment strategy. It is not surprising that in a period when the relative growth of many “hyper-growth” companies disappointed, investors returned to a theme with lasting power – business quality. The gains realized during fiscal 2020 and early fiscal 2021 in many low-quality, hyper-growth companies were based on unsustainable growth expectations, which led to disappointment in these stocks during fiscal 2023.

There were some key events that occurred during fiscal 2023 that will shape the outlook for the coming year. Particularly notable was the aggressive increase of interest rates. The Fed raised rates an aggregate 4.25 percentage points from a starting point near zero in March 2022. This has been one of the most aggressive upward rate trajectories in history. Additionally, starting in June 2022 the Fed initiated quantitative tightening by reducing its balance sheet by $80 to $90 billion per month. The inversion of the yield curve provided support for those arguing a recession is on the horizon.

The Fed confirmed the greatest enemy remains inflationary pressure and reiterated its desire to maintain tight policy that it sees as necessary to extinguish inflationary risk. Policy remained hawkish despite several signals of increasing uncertainty regarding the future pace of economic growth. The pace of growth in the US already appeared to be slowing with the Institute for Supply Management (ISM) Manufacturing Index and Services Purchasing Managers’ Index (PMI) both weakening during the period. Orders are slowing and inventories have normalized. Particularly notable were the second- and third-largest bank failures in recent history, events that the market interpreted as a mere inconvenience but will likely produce sustained financial tightening effects.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Large Cap Growth Fund declined, although it outperformed its benchmark, the Russell 1000 Growth Index, which also declined. The Fund’s Class I shares fell 8.99%. The Fund’s Class A shares declined 9.24% at net asset value and declined 14.46% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 10.90%. For complete annualized performance of Delaware Ivy Large Cap Growth Fund, please see the table on page 69.

Our strategy is anchored in our beliefs, supported by empirical evidence, that business quality is more persistent than growth, that the market structurally undervalues quality businesses, and that wide-moat growth companies with attractive risk-reward profiles are the soundest vehicles for long-term compounding of wealth. As such, we continue to populate the Fund with what we consider to be high-quality, wide-moat companies supported by secular growth tailwinds and reasonable valuations.

From a sector perspective, strong stock selection in the consumer discretionary, information technology (IT), and communication

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Portfolio management reviews

Delaware Ivy Large Cap Growth Fund

services sectors was the largest contributor to relative outperformance. A sector overweight in industrials and an underweight in financials sectors also contributed. Stock selection in industrials and health care was a large detractor, along with an overweight position in communication services.

The consumer discretionary sector was the largest contributor to the Fund’s outperformance. Lack of exposure to Tesla Inc. accounted for most of the outperformance in the sector. We continue to believe that economics in the automotive industry will be competed away over time and that Tesla is overpriced relative to its realizable future earnings. Additional contributors, but of lesser magnitude, included positions in Ferrari NV and LVMH Moet Hennessy Louis Vuitton SE.

Positive relative performance in IT was helped by outperformance from the Fund’s significant overweight position in Motorola Solutions Inc. The company posted strong results throughout the year while maintaining a healthy backlog of future revenue. VeriSign Inc., NVIDIA Corp., and Microsoft Corp. also contributed to relative outperformance.

Electronic Arts Inc. drove the Fund’s relative outperformance within the communications services sector. Despite some recent choppiness in the company’s mobile business, Electronic Arts has sustained its post-pandemic growth because of its subscription-like video game franchises. Lack of exposure to Netflix Inc. and Match Group Inc., which we consider to be lower-quality businesses, also drove outperformance.

The relative underperformance within the industrials sector was driven by weakness in TransUnion. Poorly received acquisitions and exposure to cyclical consumer credit volumes were causes of TransUnion’s relative underperformance. Machinery stocks such as Caterpillar Inc., which we did not own, saw strong relative performance as investors favored relative value. A notable positive offset to the headwind in industrials was relative strength from the Fund’s overweight position in CoStar Group Inc.

The healthcare sector negatively affected performance during the year since the Fund lacked exposure to the biopharmaceuticals group. We believe this group benefited from the market’s flight-to-stability. While there were certain notable company-specific events during the year, no companies in the group have what we think are attractive idiosyncratic investment theses.

We anticipate that an environment defined by elevated volatility will persist as market participants guess and wait for the effect of financial tightening to manifest. A volatile environment may result in risky markets that are temporarily driven by emotion rather than fundamental business analysis. For example, investors’ preference for “low price” stocks at the start of calendar 2023, igniting one of the most powerful low-price rallies of the last 30 years, confirms, in our view, the persistence of value-destructive behavioral tendencies. This reference dependence (the desire to buy something that was at a higher price 12 months ago) is another example of emotions and behavioral tendencies guiding the market rather than fundamental business model analysis. Although we are prepared to be temporarily wrong in such markets, we are confident in our belief that this is not a sustainable investment strategy.

In contrast, quality-first investing is a sustainable investment strategy that has been empirically proven to generate excess returns over time. We believe the market environment is ripe for quality to outperform given relatively attractive valuations in high-quality stocks and mounting risks to corporate profitability that create potential downside risk for the growthy and cyclical tails of the market. We still see unrealistic growth expectations for the growthy tail of the market even though prices and, in some cases, valuations have become more attractive.

In terms of the economic environment, inflationary pressures are cooling but remain relatively high. Unfortunately, the policy environment has become complicated for the Fed, tasked with maintaining financial stability and constraining inflation. The Fed is possibly caught between a rock and a hard place. Do they acknowledge the recent risk to financial stability and set aside the fight on inflation or do they continue to fight inflation at the risk of causing further instability? We detail this unattractive decision tree facing the Fed not to create fear but simply to highlight that businesses relying on improving economic activity to drive growth could struggle in the coming quarters and years. The eventual “Fed pivot” to lower rates is unlikely to be perceived as positively as it has been in the recent past, and bad news is likely to be interpreted simply as bad news.

If the economic environment does in fact become choppy over the next 12 to 18 months, we think our high-quality growth companies should experience a below-average level of earnings volatility due to the critical nature of their products and services and their unique competitive positions. These advantages should minimize price competition, churn, trade-down, and other forces that erode growth and profitability. Furthermore, we believe these companies will be rewarded with a higher relative valuation such that they will potentially generate outperformance from relative growth, earnings stability (fewer negative revisions), and higher relative valuations.

Finally, we remain optimistic that active stock picking is on the verge of once again proving its value. We believe it is unlikely that we will return to a zero-interest rate environment and with that regime change comes a different set of standards. Higher valuation levels and access to capital will have to be earned through consistent growth, strong cash generation, strong profitability, and disciplined

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capital management. That is even more true post the recent disruption in the financial sector. The days of free money and an “everyone wins” mentality are likely behind us, and, in our opinion, enhanced discretion on the part of investors will reward durable, high-quality growth companies.

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Portfolio management reviews
Delaware Ivy Limited-Term Bond Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Limited-Term Bond Fund (Class I shares) 1-year return +0.07%
Delaware Ivy Limited-Term Bond Fund (Class A shares) 1-year return -0.17%
Bloomberg 1-3 Year US Government/Credit Index (benchmark) 1-year return +0.26%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Limited-Term Bond Fund, please see the table on page 73.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 76 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 current income consistent with preservation of capital.

Market review

The fiscal year ended March 31, 2023, saw a dizzying number of geopolitical, monetary policy, financial, and economic events. The period started with the backdrop of Russia’s invasion of Ukraine, the launch of unconventional economic weapons by the West, and a second shock to supply chains via agricultural and energy routes. To complicate things, on the journey to managing escalating inflation not seen since the early 1980s era of US Federal Reserve Chair Paul Volcker, the Federal Open Market Committee (FOMC) delivered the second-steepest rate-hiking cycle in recent history, removing liquidity and ultimately playing a role in the banking system tremors of March 2023. While it may be too early to say inflation is in the past, metrics like the inverted yield curve and leading indicators are flashing red for recession risk for calendar 2023, indicating a handoff of risks from inflation to recession.

Policymakers, like investors, are often visited by ghosts of crises past. Events in March 2023 were a reminder that the Fed’s misstep during the time of Chair Volcker is not the only memory to fear. For many, the global financial crisis of 2008 came back into view, as did other unusual phenomena, such as the Long-Term Capital Management (LTCM) crisis of 1998 or the 1987 insurance crash. Regardless of the preferred history book example, the importance of confidence in the financial system came back into focus.

In March, Silicon Valley Bank, a little-known regional bank with an idiosyncratic depositor base and long history of high-quality lending, succumbed to depositor crowd behavior and was taken into receivership by the Federal Deposit Insurance Corporation (FDIC). The event spooked depositors and markets, opening the door to the possibility of a run on banks. At record speed, the Fed put into place a lending facility for US banks to borrow against Treasury and agency mortgage-backed securities (MBS) at par, effectively insuring deposits. Additionally, in Europe, the Swiss regulator engineered an arrangement between UBS and Credit Suisse to prevent a confidence crisis at Credit Suisse from becoming a systemic issue.

Despite the temporary market disruption, central banks remained focused on fighting inflation. Even with the backdrop of a bank confidence crisis, the European Central Bank (ECB) opted to raise interest rates by 0.50 percentage points to 3.50%, and the FOMC increased rates by another 0.25 percentage points in March to a range of 4.75% to 5.00%, pursuing a tightrope walk of remaining both focused on inflation and committed to financial stability. So far, markets have seemed willing to accept that the worst has been averted. Even as interest rate volatility remains near all-time highs, the compensation for credit risk, with few exceptions, still fails, in our view, to fully reflect the likelihood of a recession.

With a backdrop of unhinged inflation and resilient labor markets, all but one of the interest rate hikes during this cycle took place during this fiscal year – the US federal funds rate increased from near zero to a range of 4.75% to 5.00% by fiscal year end. While the yield curve inverted somewhat predictably, with long-term interest rates rising less than short-term rates, the fiscal year saw a significant decline in bond market returns and drastically higher consumer lending rates, including for auto loans and mortgages.

The US dollar maintained its strength for most of the year, while the euro fluctuated around parity with the dollar. Despite crowded calls that the dollar may have seen its peak strength, the shift from rate cycle beneficiary to safe-haven asset by March 2023 averted the shift in the dollar era.

Against this highly volatile backdrop, credit markets behaved reasonably well in 2022, albeit while sustaining broad losses largely owing to the increase in interest rates. However, higher yields were viewed as an opportunity for many fixed income investors and may have provided important technical support at a time when central banks across most of the developed world were raising short-term rates. Indeed, even despite the Silicon Valley Bank default and banking sector concerns, credit premiums have yet to match the highs seen during other stress periods. Looking forward, the silver

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lining for fixed income investors may be manifest in the higher yields that potentially offer an income buffer to further price volatility.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Limited-Term Bond Fund underperformed its benchmark, the Bloomberg 1-3 Year US Government/Credit Index. The Fund’s Class I shares gained 0.07%. The Fund’s Class A shares declined 0.17% at net asset value and declined 2.92% at maximum offer price. These figures reflect all distributions reinvested. For the same period, the Fund’s benchmark gained 0.26%. Complete, annualized performance for Delaware Ivy Limited-Term Bond Fund is shown in the table on page 73.

Investors widely expected that the Fed would be active throughout most of the fiscal year. That expectation became reality when the Fed began raising rates in March 2022, just prior to the beginning of this fiscal period, and continued through March 2023 when the federal funds rates reached a range of 4.75% to 5.00%. As cumulative rate hikes rose, investors slowly shifted their focus from inflation risk to recession risk and any unexpected consequences of the rapid liquidity withdrawal.

In managing the Fund, we try to provide, rather than take, liquidity. Liquidity enables us to take advantage of periods of uncertainty. It provides us with the investment flexibility to take advantage of market opportunities as they arise.

The Fund entered the fiscal year with an overweight allocation to investment grade corporate credit, which neither detracted nor added to relative performance. However, an overweight to BBB-rated industrials was a leading driver of performance, as higher yields started to benefit total returns during a volatile period. The Fund’s higher relative allocation to industrials than financials limited its exposure to the March 2023 spread widening. Meanwhile, we maintained the Fund’s overweight to investment grade corporate credit but reduced it modestly in early 2023 as investors’ exuberance for continued economic growth despite increased interest rates took risk premiums too low, based on our assessments.

The Fund’s out-of-benchmark allocation to commercial mortgage-backed securities (CMBS) contributed to performance, as the higher spreads in the sector helped absorb the price volatility, while the Fund remains focused predominantly on AAA-rated securities.

Lastly, the Fund’s modest allocation to high yield securities was beneficial, as the higher income helped buffer price volatility. Specific examples included MGM Resorts International, which benefited from the global economic reopening, and Sensata Technologies BV, a hardware company that benefited from improved supply chain operations. We continue to hold both issuers in the Fund.

Yield curve management detracted from performance. We maintained a modestly greater interest rate sensitivity during the fiscal year, which detracted from returns as short-term interest rates rose.

Out-of-benchmark exposure to collateralized loan obligations (CLOs) detracted from performance as well, as spreads widened on the heels of greater volatility. We believe the Fund’s exposure to high-quality AAA-rated securities should benefit from the higher yields as volatility stabilizes.

Lastly, the heightened volatility in the banking sector in March 2023 resulted in underperformance for several of the Fund’s bank holdings. In particular, the Fund’s allocation to Credit Suisse AG senior securities detracted from performance as spreads widened ahead of the company’s arranged acquisition by UBS. Similarly, an allocation to Citizens Bank N.A. senior securities detracted from performance as markets repriced risk premiums on regional bank securities over concerns of fleeing depositors. We continue to hold both of these issuers in the Fund, as we believe fundamentals remain supportive of recovery.

Key risks and opportunities

Investors face complex considerations going forward, from the remaining stress on smaller regional banks to pressure in commercial real estate markets, the possibility of lingering inflation, and the high risk of recession. However, we suggest the landscape may be simplified to something more straightforward: We are in the middle of a risk handoff from inflation to recession after a secular repricing in interest rates, with relatively simple implications.

First, with yields returning to where they were before quantitative easing (QE) monetary policy took hold, bonds seem to be acting like bonds again, featuring historically compelling yields and a return to their inverse correlation with equities, which manifested clearly in the first quarter.

Second, history suggests it may be better to be early than late at turning points in tightening cycles, as yield curve inversions and rising recession risks mean the outlook for longer-term interest rates is quite bright, in our view.

Lastly, transitions don’t usually go smoothly. In our opinion, volatility is likely to remain high; credit spreads, while more attractive than before the tightening cycle, may need to increase further as recession risks take center stage; and market movements may happen rapidly.

We think this is a compelling time for agile active management and bottom-up (bond by bond) security selection as dispersion increases. Value has emerged in certain areas of the market, such as agency mortgage-backed securities (MBS) and high-quality securitized debt,

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Portfolio management reviews

Delaware Ivy Limited-Term Bond Fund

far from the eye of the storm. Meanwhile, the high-income feature of credit and emerging markets debt, coupled with volatility, may create opportunities down the road. Bonds are bonds again, in our view, and exposure to the asset class is as attractive as we’ve seen in decades. We believe agility and security selection will remain key to navigating the uncertainty.

During the fiscal year, the Fund used derivatives, including interest rate futures and high yield credit default swaps (CDX) to tactically gain access to the high yield asset class. Derivatives detracted from performance by less than 50 basis points.

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Portfolio management reviews
Delaware Ivy Managed International Opportunities Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Managed International Opportunities Fund (Class I shares) 1-year return -3.50%
Delaware Ivy Managed International Opportunities Fund (Class A shares) 1-year return -3.79%
MSCI ACWI (All Country World Index) ex USA Index (net) (benchmark) 1-year return -5.07%
MSCI ACWI (All Country World Index) ex USA Index (gross) (benchmark) 1-year return -4.57%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Managed International Opportunities Fund, please see the table on page 77.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 79 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 capital growth and appreciation.

Market review

At the start of the Fund’s fiscal year on March 31, 2022, persistently high inflation led to tighter central bank monetary policy, with the US Federal Reserve leading the way in raising interest rates. This increase in rates was the Fed’s aggressive attempt to try to bring inflation under control. Other central banks, including the Bank of England and the European Central Bank (ECB), also took repeated steps to tighten monetary policy in their jurisdictions. Meanwhile, equities and bonds posted poor performance in the face of brutal headwinds and unrelenting negative news. This included soaring inflation, consequent aggressive monetary tightening, ongoing supply chain problems, China’s zero-COVID policy-related lockdowns, the Russia-Ukraine war, and soaring energy prices. The higher prices and disruptions within the supply of oil and gas hit Europe hardest as Russia cut off gas to several European Union (EU) countries. In turn, the Group of Seven (G7) nations and later the EU implemented an oil embargo.

Markets rallied briefly in July 2022, when a near-term turnaround in inflation seemed possible. Despite investors’ concerns about the slowing of economic growth, stocks appreciated along with other risk asset classes, including corporate, high yield, convertible, and emerging market bonds. A key reason for this appreciation was the decline in yields on US and euro-zone government bonds, leading to significant price gains. However, the tide turned again in mid-August and the bear market returned for most asset classes when hopes for a slowdown in inflation were dashed. Central banks then reaffirmed their intentions to continue aggressively tightening monetary policy. Recession fears mounted and the energy crisis worsened as Russia announced it was shutting down a gas pipeline for maintenance. German yields rose sharply, and the euro fell below parity with the US dollar for the first time in 20 years.

The fourth quarter of 2022, like the third quarter, had a friendly start. Most equities advanced, and the US and European broad indices posted substantial gains. Continued high inflation and interest rate hikes by numerous central banks characterized the market environment in October, and, by November, it appeared that markets were in recovery mode. After the Fed’s expected 0.75-percentage-point interest rate hike at the beginning of October, poorer economic data and slightly declining inflation rates fueled hopes of slower interest rate hikes in the near future. Instead of a year-end rally, however, equities and bonds suffered significant losses in December. Global inflation rates fell slightly, and as expected, the major central banks raised key interest rates but by less than before (for example, the Fed and the ECB each raised rates by 0.50 percentage points).

The positive reversal of trends from the challenges and large drawdowns that had occurred for most of calendar year 2022 continued as the new year began. The equity and bond markets started 2023 strong on the heels of China’s reopening and hopes of falling inflation. Although headline inflation rates fell due to declining energy prices, core inflation fluctuated. This caused the ECB and the Fed to again emphasize their intention to remain restrictive for longer. GDP growth for the fourth quarter of 2022 was better than expected in the US and in China, but slightly negative in Germany and other European countries.

In February 2023, inflation and interest rate hike expectations rose once again as did bond yields. In the US in particular, the January inflation rate was surprisingly high, the labor market remained strong, and globally, indicators pointed to high demand in the services sector. Fed and ECB spokespersons again stressed that they would remain hawkish. In this environment, government and corporate bonds fell in unison. In the equity markets, North America and emerging markets lost ground while Europe and Japan gained. Commodities fell sharply in some cases, partly because demand from China was weaker than

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Portfolio management reviews

Delaware Ivy Managed International Opportunities Fund

expected. The US dollar broke out of a four-month downtrend and strengthened against the euro.

The collapse of three US regional banks and Switzerland's Credit Suisse caused severe turbulence in March. Bank share prices plummeted, and stock markets in general fell quite sharply. Government bonds and gold rallied, risk premiums on corporate bonds widened, and the US dollar lost ground against the euro. Since one contributory factor was the sharp interest rate hikes, central banks sought to perform a balancing act between maintaining financial stability and fighting inflation. While the ECB and Fed guaranteed massive liquidity for the banking system, it also raised key interest rates due to continued high core inflation. Markets then calmed down, and broad equity indices turned positive again.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Managed International Opportunities Fund declined, although it outperformed its benchmark, the MSCI ACWI ex USA Index, which also declined. The Fund’s Class I shares declined 3.50%. The Fund’s Class A shares fell 3.79% at net asset value and fell 9.32% at maximum offer price. These figures reflect all distributions reinvested. For the same period, the benchmark declined 5.07% (net). For complete, annualized performance of Delaware Ivy Managed International Opportunities Fund, please see the table on page 77.

The recent environment for international equities has been a challenging one, and, as a result, the Fund’s performance declined for the fiscal year. Despite the challenging backdrop, however, the Fund managed to outperform its benchmark. Fund performance reflected the mix of returns in the underlying funds and their allocation weightings. The most significant contributors to both absolute performance and performance relative to the Fund’s benchmark over the past year were Delaware Ivy International Value Fund, Delaware Global Value Equity Fund, Delaware Ivy International Core Equity Fund, and a modest allocation to cash during the period. Conversely, the most significant detractors to both absolute and relative fund performance were Delaware Ivy Systematic Emerging Markets Equity Fund and Delaware Ivy International Small Cap Fund.

The unprecedented hiking cycle in the US and the euro zone has already begun to affect the economy’s largest stakeholders, in our view. One year after the Fed’s initial rate hike of 0.25 percentage points, the current financial market environment seems staged for a binary outcome, in our opinion. We believe much depends on how confidence in the banking sector develops and whether more pain appears on the horizon. Central banks in the US and the euro zone face a dilemma as the targets of both price and financial market stability seem to us hard to achieve simultaneously. Even though the situation is fluid, we believe that unlike 2022, there are more asset classes that could offer intrinsic diversification. Our focus remains then on risk management while we seek what we consider to be the most attractive investment opportunities in the context of carefully constructed, well-diversified portfolios.

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Portfolio management reviews
Delaware Ivy Mid Cap Growth Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Mid Cap Growth Fund (Class I shares) 1-year return -9.80%
Delaware Ivy Mid Cap Growth Fund (Class A shares) 1-year return -10.07%
Russell Midcap® Growth Index (benchmark) 1-year return -8.52%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Mid Cap Growth Fund, please see the table on page 80.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 82 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 growth of capital.

Market review

Though the overwhelming trend was to the downside, there was significant volatility throughout the trailing 12-month period as the markets tried to understand and price peak inflation and the corresponding aggressive US Federal Reserve moves juxtaposed against stubborn employment, wage, and manufacturing data. Continued strength in these later measures led the Fed to reiterate its higher-and-hold interest rate policy instead of pivoting to a more dovish stance. As labor markets remained tight, the talk of peak inflation continued to be offset by the growing concern of a hard landing due to the stress of tighter financial conditions.

With interest rates continuing to move higher, housing affordability rolled over as mortgage rates more than doubled from their lows, causing affordability to sink precipitously. The downdraft continued as focus shifted from the macro concerns to corporate earnings degradation and the ultimate impact on how earnings and earnings growth should be appropriately priced, given the new higher interest rate environment. The final volatility-inducing event of the 12-month period occurred early in March 2023 as the banking sector came under intense scrutiny, particularly at regional banks due to mismatches in assets and liabilities caused by the Fed’s aggressive tightening cycle. Though there were only two bank casualties in the US, a contagion was averted when the Fed stepped in announcing a new emergency liquidity facility while protecting the uninsured deposits at those institutions that were in need. All of this changed the narrative to the expectation of an aggressive Fed pivot, which provided a significant tailwind once again to the equity markets, particularly larger capitalization growth stocks.

The Russell Midcap Growth Index (the Fund’s benchmark) declined for the trailing year. All sectors within the index turned in negative performance except for the energy, utilities, and consumer staples sectors. The Russell Midcap Growth Index outperformed both the large- and small-cap growth indexes as well as the Russell Midcap® Value Index for the period, with lower debt, lower price-to-earnings (P/E) and sales growth, higher gross margins, and higher earnings per share growth outperforming within the index.

Source: FactSet, unless noted otherwise.

Within the Fund

For the fiscal period ending March 31, 2023, Delaware Ivy Mid Cap Growth Fund declined, underperforming its benchmark, the Russell Midcap Growth Index, which also declined. The Fund’s Class I shares declined 9.80%. The Fund’s Class A shares fell 10.07% at net asset value and fell 15.23% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 8.52%. For complete, annualized performance of Delaware Ivy Mid Cap Growth Fund, please see the table on page 80.

Both stock selection and asset allocation negatively affected relative performance in the period. With the litany of uncertainties presented in the macroeconomic environment, we remain vigilant in our fundamental research, maintaining a concentrated portfolio of profitable, lower-debt companies that we think can grow throughout a market and economic cycle. Sector overweight and underweight positions are primarily a by-product of bottom-up (stock-by-stock) selection, with notable overweight positions in information technology (IT), healthcare, and communication services, while significant underweights are in materials, real estate, consumer staples, and industrials. The lack of exposure to the energy sector over the period was the main contributor to the Fund’s relative underperformance, while our underweight to materials provided the largest positive relative sector contribution to performance.

Healthcare, the second largest sector allocation in the benchmark and an overweight in the Fund, was a significant relative contributor to performance, with both the overweight allocation to the sector as well as strong stock selection contributing. West Pharmaceutical Services Inc. is a leading manufacturer in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable medicines. We have researched and

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Portfolio management reviews

Delaware Ivy Mid Cap Growth Fund

followed the company for several years but were not comfortable with the risk-reward potential given the valuation of the stock over time. The market pullback in 2022 gave us the valuation opportunity that we had patiently waited to initiate a position in the Fund’s portfolio. In our opinion, West has deftly navigated the stepdown from the accelerated demand for its products due to COVID-19, while increasing production capacity and maintaining focus on product development that suits the needs of the new biologic therapies coming to market.

The consumer discretionary sector produced the second-highest relative contribution for the period, with stock selection driving the outperformance over the index. BorgWarner Inc., the second-highest stock contributor to performance for the trailing year, engages in the provision of technology solutions for combustion, hybrid, and electric vehicles. Management announced a spinoff of much of its legacy internal combustion business late in 2022. The company’s message over the past four years has been one of transition: winning business in new powertrain technology, specifically hybrid and electric vehicles. With this spinoff, the company is executing on its goal of being 1/3 Electric Vehicle Revenue by mid-decade. We have held BorgWarner for a long time, and, we think, our patience – coupled with the fruits of their labors – is beginning to pay off.

The industrials sector, a market-weight position in the Fund’s portfolio, was the largest detractor to relative performance for the year with negative stock selection driving underperformance. CoStar Group Inc., a real estate data, analytics, and online marketplace, was a bright spot in the industrials sector for the period and, remains the second largest position in the Fund. There is always a bit of handwringing when CoStar announces guidance for the upcoming year, and 2023 was no different. The company guided well below consensus expectations due to the investments they made to expand their revenue model into the residential real estate market with the launch of Homes.com, which is expected to roll out mid-year. We believe strongly that management can navigate into the residential real estate market with the same, if not better, success as their launch of Apartments.com, which in the fourth quarter of 2022 announced net new bookings growth of more than 170% year over year.

The financial sector came under tremendous pressure in the first quarter of 2023 as news of Silicon Valley Bank’s (SVB’s) tenuous capital situation came into focus with unexpected and alarming rapidity. Fears of contagion and potential bank runs became widespread in a short period of time, bringing the entirety of the financial sector down as bank capital structures were fully scrutinized. While we didn’t own SVB, we did have exposure to two regional banks that suffered at the hands of the market. Of note is First Republic Bank, which we had held in the Fund’s portfolio for more than a decade. Though the bank’s capital situation was much different than that of SVB, the market treated the stock in a similar fashion, selling off more than 80% in the first quarter, making First Republic the largest single relative detractor to performance within the portfolio for the period. We sold the name as judiciously as possible, as we believe the landscape for regional banks has elevated scrutiny, increased the potential for unknown risks, and raised the likelihood for increased regulation.

Information technology, the largest overweight position to the largest sector in the index, was a slight drag on performance for the period coupled with negative relative returns from stock selection. While the energy sector is a small allocation compared to the benchmark, and we continue to have no exposure in this sector, it was responsible for the highest negative relative sector allocation performance for the Fund during the performance period. We remain wary of the business models within the energy sector, where companies, in our view, have tended to spend with reckless cyclical abandon, and not for the longer-term viability and profile of their businesses. Recently however, we noted an interesting change in that dynamic, as shareholders have spoken, and managements have listened to the desire for more capital discipline. We continue to research potential names for the portfolio but have yet to enter any positions of note.

Finally, a slight overweight to communication services had a negative effect on relative performance. Strong stock selection, however, returned a positive overall relative contribution to the Fund within this sector. While an underweight to the materials and consumer staples sectors provided a positive contribution to relative returns, stock selection in both sectors offset any gains from the weightings. No exposure to the underperforming real estate sector added to relative outperformance while our cash position detracted.

The top five individual holdings that were relative contributors to the Fund’s performance for the reporting period were MarketAxess Holdings Inc., BorgWarner Inc., Seagen Inc., Abiomed Inc., and Horizon Therapeutics. Abiomed and Horizon Therapeutics are no longer held in the Fund.

The bottom five individual holdings that were relative detractors to the Fund’s performance for the reporting period were First Republic Bank, Coherent Corp., Marvell Technology Inc., National Vision Holdings Inc., and Generac Holdings Inc.

The Fund’s use of options had a limited effect. Overall, derivatives were immaterial to the Fund’s performance during the fiscal year.

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Portfolio management reviews
Delaware Ivy Mid Cap Income Opportunities Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Mid Cap Income Opportunities Fund (Class I shares) 1-year return -4.42%
Delaware Ivy Mid Cap Income Opportunities Fund (Class A shares) 1-year return -4.73%
Russell Midcap® Index (benchmark) 1-year return -8.78%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Mid Cap Income Opportunities Fund, please see the table on page 83.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 85 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 total return through a combination of current income and capital appreciation.

Market review

Investors were filled with optimism as they entered calendar year 2022. Expectations for an emergence from the COVID-19 pandemic, strong economic demand, robust company and consumer balance sheets, extremely low interest rates, and expansionary fiscal spending combined to push equity valuations to very high levels. As the year unfolded, however, it was these exact bullish ingredients that brought the unwanted outcome of high inflation. The US Federal Reserve concluded that the inflation was largely transitory and would recede throughout the year. This assessment proved to be misguided as the inflationary environment continued to gain steam, inevitability forcing the Fed’s hand. In March 2022, the Fed began aggressively raising interest rates to combat inflation, a policy that continued through the first calendar quarter of 2023.

Prevailing wisdom suggests that during a tightening cycle, the Fed will increase interest rates until something breaks. In the first calendar quarter of 2023, some banks broke. Bank customers moved deposits from lower-yielding accounts to Treasurys and other institutions where they could earn higher levels of interest, forcing banks to raise deposit rates to maintain their level of deposits. Silicon Valley Bank (SVB) experienced an effective failure in the quarter. This caused significant anxiety across the banking industry as customers grew concerned about the safety of their deposits. Signature Bank experienced the same outcome as SVB. Customers of First Republic Bank, whose high-net-worth customer base maintained deposits in excess of the FDIC insurance level, made massive withdrawals over a short period, pressuring its balance sheet. Despite these events, the Fed has remained resolute with its focus on continuing its rate tightening cycle.

Beyond the banking issues, the overall economy surprised to the upside with stronger growth and continued robust employment growth. Cash flows were negatively pressured when many companies experienced a significant build in working capital, particularly inventory levels. This occurred as firms attempted to mitigate the supply chain pressures from the preceding two years. We expect this pressure to ease in the new fiscal year, improving free cash flow generation.

The Russell Midcap Index declined in fiscal 2023. Two sectors, energy and industrials, produced positive performance. The consumer staples, utility, healthcare, and consumer discretionary sectors delivered negative total returns but outperformed relative to the benchmark. The communications and real estate sectors had the worst relative performance, both declining greater than 20%. The financials sector underperformed, particularly late in the period. The information technology (IT) sector extended its period of multiple compression, driving underperformance. Materials produced benchmark-like returns for the quarter.

Overall, the investment environment was broadly positive for our investment process. Dividend-paying companies outperformed their non-dividend-paying brethren.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal period ended March 31, 2023, Delaware Ivy Mid Cap Income Opportunities Fund declined, although it outperformed its benchmark, the Russell Midcap Index. The Fund’s Class I shares declined 4.42%. The Fund’s Class A shares fell 4.73% at net asset value and fell 10.22% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 8.78%. For complete, annualized performance of Delaware Ivy Mid Cap Income Opportunities Fund, please see the table on page 83.

Dividend income nicely contributed to relative overall performance in a contracting equity market environment.

Sector allocation and stock selection contributed equally. Within sector allocation, the Fund’s underweight position to the poorly performing real estate and communications services sectors, and its

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Portfolio management reviews

Delaware Ivy Mid Cap Income Opportunities Fund

overweight allocation to the strongly performing industrial and the consumer discretionary sectors, were the main contributors. Slightly offsetting these positive allocation decisions were underweight positions in the energy and utilities sectors. Although stock selection was positive within the materials, financials, real estate, and consumer staples sectors, these gains were slightly offset within the industrials and consumer discretionary sectors.

The real estate sector produced the strongest relative return for the Fund, which was significantly underweight this underperforming sector. American Campus Communities was the only holding during the year. The company was acquired early in the period by private equity for a premium given the arbitrage of private market valuation rates versus the public value of ACC.

Strong stock selection within the materials sector also contributed greatly to relative outperformance as most of our holdings generated positive returns in a down equity market. RPM International Inc. produced better-than-expected results as pricing initiatives finally surpassed costs increases, allowing for margin expansion in the second half of the year. Avery Dennison Corp. continued to benefit from greater adoption of radio frequency identification (RFID) technology across multiple industries, driving better-than-expected results. This product carries higher margins than its base business, thus driving secular margin expansion.

Stock selection also drove outperformance within the financials sector. A large portion of this was the avoidance of the troubled banks. The Fund did experience weakness in its regional bank holdings, Columbia Banking System Inc. and Glacier Bancorp Inc., which was more than offset by strong performance in our non-bank financial exposure. Arthur J. Gallagher & Co. experienced stronger than expected organic growth throughout the year with solid pricing and economic growth supporting results. Ares Management LLC continued to produce strong results leading to a significant increase in the company’s dividend.

The Fund’s outperformance in the consumer staples sector was split evenly between our overweight to the outperforming sector and stock selection. The Clorox Co. performed strongly in the period. After a difficult cost inflation period for the company, Clorox passed through significant price increases and has begun its margin recovery journey. Sysco Corp. demonstrated market share gains and, like Clorox, began margin recovery following periods of significant inflation.

The consumer discretionary and industrials sectors were both areas of relative weakness driven by negative stock selection. Results for Hasbro Inc. were pressured as retailers found themselves over-inventoried and made significant adjustments to orders, particularly within the toy category. This led to negative revenue and earnings revisions. We sold our position in the stock. Stanley Black & Decker Inc., experienced significant margin and cash flow contraction as underlying demand first exploded to the upside, then quickly slowed, leading to a significant build in inventory coupled with raw material and logistics cost increases. We continue to own Stanley Black & Decker, believing we have reached the free cash flow generation inflection.

We keep watch on several key variables to determine Fund positioning. These variables (domestic economic growth, change in interest rates, change in commodity prices, and foreign economic growth) have remained consistent since the Fund’s inception and continue to be monitored.

Domestic economic growth: Most market participants have forecasted that 2023 will usher in a recession as the Fed is focused on combating US inflation. We believe this is a reasonable expectation, with the main debate the depth and duration of the recession. We find ourselves in the short and shallow crowd, believing the probability of a severe recession is low. Banks are likely to tighten lending standards following recent events, which could further impede growth. Company and consumer balance sheets, while deteriorating, are currently at robust levels, providing the backdrop for stronger spending than normally experienced in an economic contraction. Significant fiscal infrastructure spending is scheduled to occur in 2023 and projected to grow again in 2024. While we think the rate of layoffs will increase this year, the recent difficultly of hiring experienced skilled workers will likely keep employment levels higher than those seen in previous recessionary periods. As we closely monitor this situation, we remain constructive on the financial markets as valuations have compressed and expectations for corporate earnings have begun their negative revisions.

Change in interest rates: The short- and long-term segments of the interest rate curve indicated dramatically different environments. The short end has continued to march higher with each Fed increase. Inflation has remained persistently high; however, there are indicators of moderation forthcoming in multiple areas. We continue to believe the Fed will err on the side of too many rate increases to ensure that inflation eases. The medium to long-end of the interest rate curve suggests the Fed will quickly pivot to rate cuts after the ensuing recession and moderating inflation. The fly in the ointment remains employment and wage pressure. We do worry about its relative stickiness, as overall unemployment remains low, and companies want to hold on to their skilled labor in preparation for the next expansionary cycle. Our expectation is we are in the very late innings of the interest rate increases cycle and anticipate the Fed pausing in the near term and potentially cutting interest rates as economic growth slows and inflation eases.

30

Change in commodity prices: Strong demand, challenging production, and supply chain issues have been supportive of higher commodity prices since 2020. We now have easing in all three of these components, which is driving a moderation in many industrial commodities. The Russian invasion of Ukraine added another level of uncertainty, particularly within the energy and agriculture markets. Should a resolution be found, we would expect commodity prices to ease further, but visibility to such a resolution remains opaque. A closely watched survey from the Institute for Supply Management has shown significant moderation in its ISM® Manufacturing Prices Index throughout the most recent quarter, indicating that less cost pass-through appears to be forthcoming.

Foreign economic growth: It appears China has loosened its stance regarding COVID-19, providing an environment that supports global economic growth. A resolution to the Russian-Ukrainian conflict has the potential to ease pressures in the region and could also support economic growth but remains difficult to predict. The anticipated European energy crisis was largely averted with a warmer than normal winter. We think this result should produce better than previously forecasted growth in the region.

31

Portfolio management reviews
Delaware Ivy Municipal Bond Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Municipal Bond Fund (Class I shares) 1-year return -3.62%
Delaware Ivy Municipal Bond Fund (Class A shares) 1-year return -3.83%
Bloomberg Municipal Bond Index (benchmark) 1-year return +0.26%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Municipal Bond Fund, please see the table on page 86.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 88 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 the level of current income consistent with preservation of capital and that is not subject to federal income tax.

Market review

For the fiscal year ended March 31, 2023, and especially in its first half, inflation in the US remained a major concern for policymakers and investors. Higher energy costs, worsened by Russia’s invasion of Ukraine in February 2022, and disruptions in the supply chain, primarily drove the rise in prices. In June 2022, the US Consumer Price Index (CPI) peaked at an annual increase of 9.1%, the fastest rise in more than 40 years. However, this trend meaningfully slowed during the final three quarters of this fiscal year. By March 2023, the annual CPI increase had dropped to 5.0% – still historically high but the lowest rate of inflation in more than a year, as interest rate hikes by the US Federal Reserve appeared to have their desired impact.

The US central bank took decisive action by raising short-term interest rates when inflation became a growing concern for the Fed. Throughout the fiscal year, the Fed increased rates frequently and rapidly, raising the federal funds rate eight times from 0.25% at the start of the fiscal year to 4.75% by the end of March 2023. Although the Fed was expected to continue raising rates in 2023, most analysts believed that the rate-hiking cycle would soon come to an end as concerns about a recession grew. Concern about the economic backdrop grew further in the final month of the fiscal year amid worries about the banking industry, precipitated by the collapse of US lenders Silicon Valley Bank and Signature Bank, and Europe’s Credit Suisse.

Amid rising inflation and interest rates, the US economy began the fiscal year on a downturn. In the first half of 2022, the country’s gross domestic product (GDP) – a measure of national economic output – decreased by an annualized 1.6% and 0.6%, in the first and second quarter, respectively. However, in the third quarter, US GDP grew by an annualized 3.2%. The economy continued its expansion in the fourth quarter, growing at an estimated annual rate of 2.6% during that three-month period, driven primarily by inventory adjustments and consumer spending.

Despite the challenging economic conditions, the US jobs market remained robust throughout the fiscal year. The unemployment rate began the period at an historically low 3.6%, which was a significant improvement from the pandemic peak of 14.7% in April 2020. In February 2023, the jobless rate reached a 53-year low of 3.4% before ticking back up to 3.5% the following month.

In an often-volatile environment for fixed-income investors, the municipal bond market, as measured by the Bloomberg Municipal Bond Index, gained 0.26% for the fiscal year ended March 31, 2023.

Investors in municipal bonds encountered two very different sets of market conditions during the Fund’s fiscal year. Market conditions were highly challenging for fixed-income investors in its first half, as an unfavorable supply and demand backdrop hurt the municipal bond market.

Despite generally healthy credit quality among municipal issuers, rising interest rates and concerns that higher inflation would lead to even more rate hikes by the Fed led to significant outflows from municipal bond funds, causing a decrease in bond values.

In the second half of the fiscal year, however, investors’ concern about inflation eased and expectations that the Fed would soon end its rate-hike cycle grew as the odds of recession increased. Outflows from the municipal bond market slowed and demand for municipal securities increased, helping the market recover the value it had lost earlier in the fiscal year.

In this market environment, the weakest performers by far were longest-dated bonds, hampered by their increased sensitivity to higher rates. Meanwhile, shorter term and especially intermediate-term bonds fared the best. Additionally, bonds with lower credit ratings were more likely to lag their higher-rated counterparts during the fiscal year.

Source: Bloomberg, unless noted otherwise.

32

These tables show municipal bond returns by maturity length and by credit quality for the fiscal year ended March 31, 2023.

Returns by maturity  
1 year +1.55%
3 years +1.52%
5 years +1.75%
10 years +2.38%
22+ years -3.64%
   
Returns by credit rating  
AAA +0.55%
AA +0.58%
A -0.04%
BBB -1.32%

Source: Bloomberg.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Municipal Bond Fund posted negative returns and underperformed its benchmark, the Bloomberg Municipal Bond Index. The Fund’s Class I shares fell 3.62%. The Fund’s Class A shares declined 3.83% at net asset value (NAV) and declined 8.18% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark gained 0.26%. For complete, annualized performance of Delaware Ivy Municipal Bond Fund, please see the table on page 86.

Regardless of the market backdrop, we regularly maintain a consistent management approach throughout the fiscal year. Our bottom-up investment strategy relies on deep credit research to select municipal securities on an issuer-by-issuer basis. We prioritize tax-exempt bonds that we believe offer a favorable balance between risk and return potential for our shareholders.

We have high confidence in our team’s credit research capabilities. Therefore, when looking for new investments to add to the Fund’s portfolio, we give priority to lower-rated, higher-yielding bonds with strong credit fundamentals. We believe these types of securities provide greater opportunities for us to add value for the Fund’s shareholders.

During the fiscal year, against a highly volatile backdrop for the municipal bond market and the Fund, we encountered a high degree of investment outflows as shareholders redeemed shares. When we made bond sales and, less often, purchases during this fiscal year, we were mindful of keeping the Fund’s duration, credit quality, and sector allocations relatively consistent, as we liked how the Fund was positioned coming into the fiscal period.

To generate the proceeds needed to meet shareholders’ redemptions, we were active sellers of bonds during the 12-month time frame. We prioritized selling bonds with lower book yields, which allowed us to realize increased tax losses that we may be able to apply against future gains. Also, to a lesser extent, we engaged in tax-loss swaps to take advantage of higher yields available in the marketplace. With this strategy, we exchanged bonds with lower yields for those providing similar risk characteristics but with better coupons. This approach allowed us to improve the Fund’s income profile. Meanwhile, we were careful to avoid selling securities we believed would perform relatively well in the future, once market conditions begin to heal.

The top individual performer for the Fund was a general obligation bond issue for Palomar Health, a California healthcare district. These zero-coupon bonds, rated AA by Standard & Poor’s and maturing in 2033, gained 4% for this fiscal year, benefiting from their favorable structure and yield curve positioning.

Our next-strongest-performing investment, nonrated New York tobacco-securitization bonds maturing in 2060, rose 4%. These securities benefited from their high yield, which was desirable to investors and was sufficient to offset the negative price movement to a greater extent than many other bonds in the Fund’s portfolio. They also benefited from their recovery off a lower valuation to start this fiscal year.

On the negative side, we saw underperformance from a couple of issuers of debt for senior housing facilities. These included nonrated bonds issued for Sanctuary LTC LLC, which owns various senior healthcare facilities in Texas and Oklahoma, and Tapestry Senior Living in Wickliffe, Ohio. These securities returned -20% and -13%, respectively, for the fiscal year. In an environment in which bonds of lower credit quality tended to underperform, the senior-living sector, which primarily features lower-rated issuers, disproportionately struggled.

33

Portfolio management reviews
Delaware Ivy Municipal High Income Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Municipal High Income Fund (Class I shares) 1-year return -6.53%
Delaware Ivy Municipal High Income Fund (Class A shares) 1-year return -6.78%
Bloomberg Municipal Bond Index (benchmark) 1-year return +0.26%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Municipal High Income Fund, please see the table on page 89.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 91 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 a high level of current income that is not subject to federal income tax.

Market review

For the fiscal year ended March 31, 2023, and especially in its first half, inflation in the US remained a major concern for policymakers and investors. Higher energy costs, worsened by Russia’s invasion of Ukraine in February 2022, and disruptions in the supply chain, primarily drove the rise in prices. In June 2022, the US Consumer Price Index (CPI) peaked at an annual increase of 9.1%, the fastest rise in more than 40 years. However, this trend meaningfully slowed during the final three quarters of this fiscal year. By March 2023, the annual CPI increase had dropped to 5.0% – still historically high but the lowest rate of inflation in more than a year, as interest rate hikes by the US Federal Reserve appeared to have their desired impact.

The US central bank took decisive action by raising short-term interest rates when inflation became a growing concern for the Fed. Throughout the fiscal year, the Fed increased rates frequently and rapidly, raising the federal funds rate eight times from 0.25% at the start of the fiscal year to 4.75% by the end of March 2023. Although the Fed was expected to continue raising rates in 2023, most analysts believed that the rate-hiking cycle would soon come to an end as concerns about a recession grew. Concern about the economic backdrop grew further in the final month of the fiscal year amid worries about the banking industry, precipitated by the collapse of US lenders Silicon Valley Bank and Signature Bank, and Europe’s Credit Suisse.

Amid rising inflation and interest rates, the US economy began the fiscal year on a downturn. In the first half of 2022, the country’s gross domestic product (GDP) – a measure of national economic output – decreased by an annualized 1.6% and 0.6%, in the first and second quarter, respectively. However, in the third quarter, US GDP grew by an annualized 3.2%. The economy continued its expansion in the fourth quarter, growing at an estimated annual rate of 2.6% during that three-month period, driven primarily by inventory adjustments and consumer spending.

Despite the challenging economic conditions, the US jobs market remained robust throughout the fiscal year. The unemployment rate began the period at a historically low 3.6%, which was a significant improvement from the pandemic peak of 14.7% in April 2020. In February 2023, the jobless rate reached a 53-year low of 3.4% before ticking back up to 3.5% the following month.

In an often-volatile environment for fixed-income investors, the municipal bond market, as measured by the Bloomberg Municipal Bond Index, gained 0.26% for the fiscal year ended March 31, 2023.

Investors in municipal bonds encountered two very different sets of market conditions during the Fund’s fiscal year. Market conditions were highly challenging for fixed-income investors in its first half, as an unfavorable supply and demand backdrop hurt the municipal bond market. Despite generally healthy credit quality among municipal issuers, rising interest rates and concerns that higher inflation would lead to even more rate hikes by the Fed led to significant outflows from municipal bond funds, causing a decrease in bond values.

In the second half of the fiscal year, however, investors’ concerns about inflation eased and expectations that the Fed would soon end its rate-hike cycle grew as the odds of recession increased. Outflows from the municipal bond market slowed and demand for municipal securities increased, helping the market recover the value it had lost earlier in the fiscal year.

In this market environment, the weakest performers by far were longer-dated bonds hampered by their increased sensitivity to higher rates. Meanwhile, shorter-term, and especially intermediate-term bonds fared the best. Additionally, bonds with lower credit ratings were more likely to lag their higher-rated counterparts during the fiscal year.

Source: Bloomberg, unless noted otherwise.

34

These tables show municipal bond returns by maturity length and by credit quality for the fiscal year ended March 31, 2023.

Returns by credit rating  
AAA 0.55%
AA 0.58%
A -0.04%
BBB -1.32%
   
Returns by maturity  
1 year 1.55%
3 years 1.52%
5 years 1.75%
10 years 2.38%
22+ years -3.64%

Source: Bloomberg.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Municipal High Income Fund posted negative returns and underperformed its benchmark, the Bloomberg Municipal Bond Index. The Fund’s Class I shares fell 6.53%. The Fund’s Class A shares declined 6.78% at net asset value (NAV) and declined 11.04% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark gained 0.26%. For complete, annualized performance of Delaware Ivy Municipal High Income Fund, please see the table on page 89.

Regardless of the market backdrop, we regularly maintain a consistent management approach throughout the fiscal year. Our bottom-up investment strategy relies on deep credit research to select municipal securities on an issuer-by-issuer basis. We prioritize tax-exempt bonds that we believe offer a favorable balance between risk and return potential for our shareholders.

We have high confidence in our team’s credit research capabilities. Therefore, when looking for new investments to add to the Fund’s portfolio, we give priority to lower-rated, higher-yielding bonds with strong credit fundamentals. We believe these types of securities provide greater opportunities for us to add value for the Fund’s shareholders.

During the fiscal year, against a highly volatile backdrop for the municipal bond market and the Fund, we encountered a high degree of investment outflows as shareholders redeemed shares. When we made bond sales and, less often, purchases during this fiscal year, we were mindful of keeping the Fund’s duration, credit quality, and sector allocations relatively consistent, as we liked how the Fund was positioned coming into the fiscal period.

To generate the proceeds needed to meet shareholders’ redemptions, we were active sellers of bonds during the 12-month time frame. We prioritized selling bonds with lower book yields, which allowed us to realize increased tax losses that we may be able to apply against future gains. Also, to a lesser extent, we engaged in tax-loss swaps to take advantage of higher yields available in the marketplace. With this strategy, we exchanged bonds with lower yields for those providing similar risk characteristics but with better coupons. This approach allowed us to improve the Fund’s income profile. Meanwhile, we were careful to avoid selling securities we believed would perform relatively well in the future, once market conditions begin to heal.

The top individual performer for the Fund was a nonrated Washington, D.C., tobacco-securitization bond issue maturing in 2055. These securities, which gained about 17%, benefited from their high yield, which was desirable to investors and was sufficient to offset the negative price movement to a greater extent than many other bonds in the Fund’s portfolio. They also benefited from their recovery off a lower valuation to start this fiscal year.

Another contributor to the Fund’s performance was a general obligation (GO) bond issue of Riverdale, Illinois. These nonrated bonds maturing in 2036 gained 8% for this fiscal year, benefiting from their favorable structure and yield curve positioning.

On the negative side, we saw underperformance from a couple of issuers of debt for senior housing facilities. These included bonds issued for Church Homes, a retirement community in Hartford, Connecticut, and the Harborside senior living community in Port Washington, New York. These securities returned -36% and -15%, respectively, for the fiscal year. In an environment in which bonds of lower credit quality tended to underperform, the senior-living sector, which primarily features lower-rated issuers, disproportionately struggled.

The Fund’s nonrated bonds for the Legacy Cares athletic complex project in Mesa, Arizona also hampered performance. These securities returned -33%, meaningfully detracting from the Fund’s performance as the issuer experienced credit challenges during the fiscal year.

35

Portfolio management reviews
Delaware Ivy Small Cap Growth Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Small Cap Growth Fund (Class I shares) 1-year return -14.68%
Delaware Ivy Small Cap Growth Fund (Class A shares) 1-year return -14.90%
Russell 2000® Growth Index (benchmark) 1-year return -10.60%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Small Cap Growth Fund, please see the table on page 92.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 94 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 growth of capital.

Market review

The fiscal year ended March 31, 2023 was not favorable for small-cap growth stocks. The Russell 2000 Growth Index declined more than 10% for the period despite rallying in the last three months. Calendar year 2022 for small-cap growth stocks was the third worst in more than 25 years, eclipsed only by the recession of 2008-2009 and the 2002 “tech bubble.” Through the first nine months of the period, rising interest rates impacted valuations while economic disruption and recession affected earnings estimates. The 10-year Treasury yield, in a downtrend since the great financial crisis, was near zero percent for almost a year following the onset of the COVID-19 pandemic. Responding to significant fiscal and monetary stimulus in 2021, earnings growth surged for most of the major sectors of the market and growth stocks thrived. In 2022, however, rapidly growing consumer demand led to shortages and supply chain snarls that fed inflation, taking a toll on equity markets.

Small-cap growth stocks had been a major beneficiary of the low interest-rate, healthy economic environment that prevailed in 2021 and were thus highly vulnerable when conditions changed. During the fiscal year the 10-year Treasury yield rose from 2.3% to more than 4.2% in the fall of 2022 before settling back to 3.5% by year-end. The yield curve inverted midway through the year. High-yield spreads rose more than 2.5 percentage points by midyear, signaling increased concern about a potential recession. Higher interest rates crushed small-cap growth stocks by the end of the first fiscal quarter. A brief attempt at a late summer rally was thwarted until 2023 when a modest rebound took hold. The Russell 2000 Growth Index benchmark lagged the mid-cap and large-cap indexes for the fiscal year. Growth stocks, however, outperformed small value stocks for the period.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal period ending March 31, 2023, Delaware Ivy Small Cap Growth Fund declined, underperforming its benchmark, the Russell 2000 Growth Index, which also declined. The Fund’s Class I shares declined 14.68%. The Fund’s Class A shares fell 14.90% at net asset value and fell 19.78% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 10.60%. For complete, annualized performance of Delaware Ivy Small Cap Growth Fund, please see the table on page 92.

The Fund lagged the benchmark for the year principally due to pressure on our two largest sectors, healthcare, and information technology (IT). The healthcare sector was a significant detractor from relative performance, primarily attributable to poor stock selection. Several previously strong performers drastically reversed course due to high valuations, underwhelming profitability, weakness in procedure volumes, and disappointing sales as potential customers were constrained by persistent inflation. The overall healthcare sector underperformed the broader index, a departure from typical down years. More specifically, small-cap healthcare did not perform like a defensive sector. The repercussions of COVID-19 on the healthcare system lasted well beyond expectations. Many companies with new products or services faced challenges getting in front of decision makers or obtaining budget signoffs. Additionally, some potential customers were unable to hire the personnel necessary to accept, install, and implement new product platforms.

In many cases we felt the new product or service was superior and would gain traction in the marketplace, but that scenario was rarely realized. For example, Omnicell Inc. has what we view as a best-in-class solution for medication management that successfully gained share in past years. It hit a significant wall this period, however, due to budget constraints and facilities’ inability to implement new platforms while labor is scarce. As a result, previously

36

consistent revenues and bookings dried up for several quarters, visibility was lost, and we decided to sell the Fund’s position.

We decided to maintain our positions in some healthcare companies where we felt confident that competitive advantages remained compelling. In other instances, we exited our positions and moved on. We may renew those positions if and when sales visibility better matches our investment horizon. Through this environment, we still maintained our long-term philosophy of owning names with novel offerings that make healthcare more efficient and value based.

The IT sector has historically been a large driver of alpha (excess return relative to the benchmark) for the Fund, and we expect it to continue to be the most-favored sector from a fundamental growth perspective. Last year, however, was a correction year reflecting the macro factors mentioned above. We reduced our large overweight versus the index throughout the year as we exited less-seasoned companies and favored a higher-quality and more-profitable group of stocks. The result was performance that lagged the benchmark for the year, largely due to an overweight in software stocks and a disappointing earnings outlook for one of our communication stocks, Viavi Solutions Inc. The Fund benefited from several take-outs as private equity firms took advantage of lower stock prices to make strategic acquisitions. SailPoint Technologies Inc., ForgeRock Inc., and Switch Inc. were among the companies acquired but the gains were insufficient to offset several poorly performing software stocks including Domo Inc., Five9 Inc., and Varonis Systems Inc. However, semiconductors, led by Allegro MicroSystems Inc., positively contributed. The IT sector rallied strongly in the last quarter of the fiscal year, but that was not enough to offset the shortfall from the previous nine months.

The consumer discretionary, financials, communications, and industrials sectors were all positive for the fiscal year. Led by the consumer discretionary sector, strong stock gains from Fox Factory Holding Corp., Visteon Corp., and Texas Roadhouse Inc. drove a healthy gain for the Fund for the fiscal year. Consumer spending remained resilient throughout the year and the Fund positioned itself in a diversified group of high-quality leaders like those mentioned above. Kinsale Capital Group Inc. and Shift4 Payments Inc. were strong performers in the financials sector while Iridium Communications Inc. contributed in the communication services sector. The industrials sector contributed positively during the period, benefiting from advantageous stock selection. The industrials sector outperformed the market as a whole and our stock selection outperformed the sector. We had exposure to alternative energy, resource management, and electrification, which we think have plenty of demand and visibility going forward. While reducing the Fund’s exposure to areas only growing via cyclical inflation did not significantly contribute to performance, we believe that has the potential to benefit the portfolio as the economic cycle weakens.

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Portfolio management reviews
Delaware Ivy Smid Cap Core Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Smid Cap Core Fund (Class I shares) 1-year return -6.69%
Delaware Ivy Smid Cap Core Fund (Class A shares) 1-year return -7.02%
Russell 2500TM Index (benchmark) 1-year return -10.39%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Smid Cap Core Fund, please see the table on page 95.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 98 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 capital appreciation.

Market review

Equity markets declined during the fiscal year ended March 31, 2023. During the fiscal year, small-cap stocks declined on average, underperforming mid-cap and large-cap stocks. The smaller-cap Russell 2000® Index declined 11.61% during the fiscal year and the Fund’s benchmark, the Russell 2500 Index declined 10.39%. The Russell Midcap® Index declined 8.78%, and the large-cap Russell 1000® Index was the strongest size segment, with a return of -8.39%. Small- to mid-cap value stocks performed roughly in line with small-to mid-cap growth stocks, as the Russell 2500TM Value Index declined 10.53% and the Russell 2500TM Growth Index declined 10.35%.

Sector-level performance within the Russell 2500 Index was mostly negative as only two sectors, capital goods and consumer staples advanced, and the other 14 declined. Companies in the real estate investment trust (REIT), media, technology, finance, and healthcare sectors performed the weakest for the year as each fell by more than 15%. The credit cyclicals, consumer services, business services, energy, transportation, consumer discretionary, basic materials, communications services, and utilities sectors in the benchmark declined for the year by less than 10%.

Real gross domestic product (GDP) increased 2.1% in 2022, compared with an increase of 5.9% in 2021. The FactSet economic consensus estimate for 2023 Real GDP is 1.0%, reflecting the potential for a recession during the year.

With respect to labor, the US unemployment rate ended March 2023 at 3.5%, which is not far from where it was at the start of the fiscal year, 3.6%, for March 2022. The National Federation of Independent Business (NFIB) Small Business Optimism Index, a composite of ten seasonally adjusted components that provides an indication of the health of small businesses in the US, has been below its 49-year average of 98 for 15 consecutive months, with a reading of 90.1 in March 2023. The Conference Board Consumer Confidence Index® which reflects prevailing business conditions and likely developments for the months ahead, decreased during the fiscal year, from a March 2022 reading of 107.6 to 104.2 in March 2023. The March Purchasing Manager’s Index (PMI) registered 46.3%, which indicated the manufacturing sector contracted for the fifth consecutive month, following a 28-month period of growth. Readings below 50% indicate contraction. For the 12 months ended March 31, 2023, the US Consumer Price Index (CPI) increased 5.0%, the smallest 12-month increase since the period ended May 31, 2021, as inflation cooled.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Smid Cap Core Fund declined, although it outperformed the Fund’s benchmark, the Russell 2500 Index which also declined. The Fund’s Class I shares declined 6.69%. The Fund’s Class A shares at net asset value (NAV) declined 7.02% and declined 12.35% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark declined 10.39%. For complete, annualized performance of Delaware Ivy Smid Cap Core Fund, please see the table on page 95.

Positive stock selection contributed to relative outperformance during the fiscal year. The Fund’s holdings in the consumer discretionary and credit cyclicals sectors advanced on average while those in the benchmark declined. The Fund’s holdings in the technology and healthcare sectors declined by less than those in the benchmark for the year. Stock selection detracted from performance in two sectors: capital goods and consumer staples.

In the energy sector, shares of Diamondback Energy Inc. outperformed as the company continued to improve its earnings and free cash flow profile. During the fiscal year, Diamondback increased its dividend and declared an additional variable cash dividend. Diamondback is committed to returning 75% of free cash flow to shareholders, using various methods including dividends, share repurchases, and debt paydowns. We maintained the Fund’s position in Diamondback as the company is a leader in low-cost operations,

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has a high free cash flow yield, and management is committed to maximizing returns for shareholders.

Specialty contractor Quanta Services, Inc. was a top contributor for the fiscal year as the company delivered financial strength across its electric power, renewable energy, and underground utility infrastructure solutions business segments. Quanta’s fiscal year 2022 revenues and earnings were the company’s highest on record and management guided to fiscal 2023 growth. We maintained the Fund’s position in Quanta Services as we believe that the company offers attractive opportunities for investors to gain exposure to long-term secular growth trends.

The Fund’s positions in the consumer discretionary sector outperformed those in the benchmark for the fiscal year. Discount retailer Five Below, Inc. outperformed, as the company navigated the retail industry’s inventory issues well with minimal impact to its gross margins and continued strength in sales. Five Below sells high-quality toys, accessories, and electronics, with a focus on tweens and teens, with most items priced between $1 and $5. We maintained the Fund’s position in Five Below as the company sells high-quality items at a favorable price point while maintaining strong store economics.

In the software industry, shares of cyber-security analytics company Rapid7 Inc. underperformed during the fiscal year. Since we purchased Rapid7, it diversified its offerings to become a multi-pillar platform covering threat detection and response, cloud security, and vulnerability risk. Most of the decline in Rapid7’s share price occurred in May 2022, following the company’s fiscal first-quarter financial report, as management reduced its annualized recurring revenue (ARR) growth guidance on softening economic conditions. We continue to view Rapid7 as attractive, due to our positive view of its market opportunity and the traction in its broadening suite of what we view as best-in-class offerings.

In the medical products industry, shares of contract development and manufacturing company Catalent Inc. underperformed. Catalent’s fiscal fourth-quarter 2022 and first-quarter 2023 financial results were weaker than expected and its stock price reacted negatively to the reports. While the stock was pressured, Catalent’s guidance is conservative and reflects lower biologics revenue from its production of Moderna’s COVID-19 vaccine. We maintained the Fund’s position in Catalent as we think it has an impressive suite of products, is trading at a discounted valuation, and management has taken steps to position the company for organic growth.

The failures of Silicon Valley Bank and Signature Bank in March 2023 illustrated how quickly deposit outflows could result in a liquidity event. Consumers and corporations recognized the risk of having uninsured deposits, which created deposit outflows at certain banks. Western Alliance Bancorp was one of the banks which came under pressure as it was associated with Silicon Valley Bank due to Western Alliance Bancorp’s technology and innovation group. We exited the Fund’s position in Western Alliance Bancorp prior to the end of the fiscal year on increased risk.

At the end of the fiscal year, the Fund remained overweight the transportation, consumer discretionary, credit cyclicals, business services, and healthcare sectors. The Fund was overweight the finance, capital goods, and communications services sectors at the start of the fiscal year, and we reduced weight in those sectors ending the fiscal year underweight relative to the benchmark. The Fund remained underweight the utilities, technology, consumer services, and basic materials sectors.

We believe that the current market and economic environment should continue to support active management. In our opinion, we can take advantage of market conditions that have created valuation disconnects. We continue to maintain our strategy of investing in companies that we believe have strong balance sheets and cash flow, sustainable competitive advantages, and high-quality management teams with the potential to deliver value to shareholders. We appreciate your confidence and look forward to serving your investment needs in the next fiscal year.

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Portfolio management reviews
Delaware Ivy Systematic Emerging Markets Equity Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Systematic Emerging Markets Equity Fund (Class I shares) 1-year return -11.08%
Delaware Ivy Systematic Emerging Markets Equity Fund (Class A shares) 1-year return -11.42%
MSCI Emerging Markets Index (net) (benchmark) 1-year return -10.70%
MSCI Emerging Markets Index (gross) (benchmark) 1-year return -10.30%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Systematic Emerging Markets Equity Fund, please see the table on page 99.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 101 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 growth of capital.

Market review

The MSCI Emerging Markets Index (net) declined 10.7% during the Fund’s fiscal year ended March 31, 2023, lagging the developed markets MSCI World Index (net), which fell 7.0% for the period.

Emerging market equities declined significantly in the first half of the fiscal year for three reasons. The ongoing conflict in Ukraine led to significant reductions of Russian oil and gas supplied to Europe, raising investors’ concern about economic growth in the region. China maintained its stringent stance on COVID-19, continuing lockdowns in major metropolitan areas and further dampening the region’s economic outlook. Monetary tightening by the US Federal Reserve showed no sign of abating, contributing to rising US bond yields and a strengthening US dollar.

Emerging markets reversed course in the second half of the period as China ended its zero-COVID policy, fueling investors’ optimism for an economic rebound. Performance in 2023 benefited from a weakening US dollar. The rally reversed in February as the Fed continued to express concern about high inflation, suggesting that interest rates might rise further. Additional factors denting investor sentiment included a dearth of stimulus measures at China’s “Two Sessions” meeting, escalating geopolitical tensions between China and the US, and unforeseen turmoil in the US and European banking sectors.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Systematic Emerging Markets Equity Fund Class I shares fell, underperforming the Fund’s benchmark, the MSCI Emerging Markets Index, which also fell. The Fund’s Class I shares declined 11.08%. The Fund’s Class A shares declined 11.42% at net asset value (NAV) and fell 16.53% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark fell 10.70% (net). For complete, annualized performance of Delaware Ivy Systematic Emerging Markets Equity Fund, please see the table on page 99.

Strong stock selection in Brazil, India, and South Korea contributed to the Fund’s relative performance for the fiscal year. Shares of Petróleo Brasileiro SA (Petrobras), AmBev SA, and Banco do Brasil SA outperformed in sympathy with improving sentiment for the Brazilian economy. In South Korea, shares of car companies Kia Corp. and Hyundai Motor Co. added to performance as the market focused on the companies’ improving product mix and stronger position in key markets. Both have strong and growing exposure to the Indian market, which surpassed 3.8 million vehicles in calendar year 2022.

The technology sector was the primary source of the Fund’s underperformance during the fiscal year. Amid growing evidence of softening demand for consumer electronics and some pullbacks in enterprise technology spending, several stocks in the Fund corrected significantly. The share prices of semiconductor-chip manufacturers, including Taiwan Semiconductor Manufacturing Co. Ltd., SK hynix Inc., and Samsung Electronics Co. Ltd., declined as investors anticipated weaker earnings.

During the fiscal year, the Fund’s use of foreign exchange (FX) currency positions had a limited effect. Overall, derivatives were immaterial to the Fund’s performance.

In our view, the near-term outlook remains clouded by a host of issues including US monetary policy, concern about global economic growth, and escalating geopolitical tension. As such, we believe market conditions are likely to remain volatile. Nonetheless, we do not believe that these uncertainties have derailed long-term growth opportunities underpinned by secular trends such as digitalization and consumption premiumization (consumers’ preference for high-quality, healthy, and premium products). Furthermore, we believe that

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equity valuations across several pockets of the emerging markets universe appear attractive.

In this environment, we think a strategy that focuses on identifying what we view as high-quality companies, with positive operating momentum, at reasonable valuations, and without being captive to one specific style such as value or growth, should hold up better and potentially contribute to stronger long-term performance.

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Portfolio management reviews
Delaware Ivy Value Fund March 31, 2023 (Unaudited)

Performance preview (for the year ended March 31, 2023)    
Delaware Ivy Value Fund (Class I shares) 1-year return -6.25%
Delaware Ivy Value Fund (Class A shares) 1-year return -6.47%
Russell 1000® Value Index (benchmark) 1-year return -5.91%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Value Fund, please see the table on page 102.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Class I shares and Class A shares reflects the reinvestment of all distributions. Please see page 104 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 capital appreciation.

Significant Fund event

The portfolio management team for the Fund changed effective December 5, 2022. Please read the latest prospectus, including the supplement dated December 5, 2022, for more information concerning this event.

Market review

US stocks were under pressure for much of the Fund’s fiscal year. There were several strong rallies during the 12-month period, but the stock market trend was broadly lower. Rising inflation, high interest rates, and their potential effect on consumer spending and economic growth appeared to unnerve investors. The war in Ukraine along with sanctions imposed by Western democracies against Russia created further disruption, straining energy markets and interfering with the post-pandemic global economic recovery. Toward the end of the Fund’s fiscal year, the failures of Silicon Valley Bank and Signature Bank added to an already volatile period. Investors’ fear about broader systemic risks and potential contagion in the US banking system caused a selloff in bank stocks, especially smaller and mid-sized institutions. In response, the US Federal Reserve created an emergency lending facility, the Bank Term Funding Program (BTFP), and guaranteed all deposits (insured and uninsured) at both banks to quell investors’ concern and minimize deposit risk elsewhere. As part of its program to combat inflation, the Fed raised the federal funds rate eight times during the fiscal year to a range between 4.75% and 5.00%.

As the end of the Fund’s fiscal year approached, inflation readings moderated, according to data from the Bureau of Economic Analysis. The Personal Consumption Expenditures Price Index (PCE) rose 5.0% in February from a year earlier, down from a high of 7.0% in June. The Core Personal Consumption Expenditures Price Index (Core PCE), the Fed’s preferred inflation gauge, which excludes food and energy prices, increased 4.6% in February year over year, down from highs of 5.4% in both February and March.

Source: Bloomberg, unless noted otherwise.

Within the Fund

For the fiscal year ended March 31, 2023, Delaware Ivy Value Fund underperformed its benchmark, the Russell 1000 Value Index, which also declined. The Fund’s Class I shares fell 6.25%. The Fund’s Class A shares declined 6.47% at net asset value (NAV) and declined 11.87% at maximum offer price.These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark fell 5.91%. For complete, annualized performance of Delaware Ivy Value Fund, please see the table on page 102.

Following is a discussion about performance during the period from December 5, 2022, when the firm’s current portfolio management team began serving as the investment manager for the Fund, to March 31, 2023.

The Fund’s financials sector holdings were significant detractors during the period that the team managed the Fund. In March, the Fund’s two regional bank holdings, Truist Financial Corp. and US Bancorp, came under significant pressure following the failures of Silicon Valley Bank and Signature Bank. Our intent is to have a more defensive and less credit-sensitive positioning in financials as well as an underweight allocation compared with the benchmark. Despite being among the 10 largest banks in the US, Truist and US Bancorp sold off along with much of the group, reflecting investors’ concerns about net interest margins, potential deposit flight, and lingering fears of contagion. We believe the selloff was overdone. Both banks have solid fundamentals with diversified loan portfolios and deposit bases as well as strong capital positions. Looking ahead, we think credit conditions will become more challenging for banks and other credit-sensitive financials. Part of our rationale for holding Truist and US Bancorp is that they have historically been conservative loan underwriters and have diversified business models.

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Information technology (IT) services provider Fidelity National Information Services Inc. was another significant detractor. In February 2023, the company announced that it would spin off its Merchant Solutions business (retail transaction processing) later this year as it seeks to unlock value by strengthening the strategic and operational focus across each of its business segments. Merchant Solutions represents about 30% of total revenue; the balance is in its Banking and Capital Markets business (Fidelity National Information Services processes data for financial institutions). We view the Banking and Capital Markets segment as an attractive business. It has high recurring revenue (more than 80%) and high client retention rates. The company has approximately 1,200 banking customers and no relationship represents more than 3% of revenue. In March 2023, the company’s shares came under pressure, trading down with regional banks following the government takeovers of Silicon Valley Bank and Signature Bank. The selloff appeared overdone to us. Fidelity National Information Services is not a bank and does not have credit or loan exposure. The handful of regional banks deemed “at risk” represented less than 1% of the company’s revenue and it is still getting paid on those contracts. Its stock currently trades at an all-time low price-to-earnings (P/E) ratio, and we believe the shares offer an attractive trade-off between potential upside and downside over our three- to five-year investment horizon.

Investments in the IT sector made the largest contribution to relative returns during the period that the team managed the Fund. Motorola Solutions Inc., a provider of mission-critical communication systems and analytics, including land mobile radios, command-center software, and video security equipment, was a leading contributor. In February, the company reported fourth-quarter 2022 revenue and earnings per share (EPS) that were ahead of expectations and issued guidance for the current quarter that was above consensus estimates. The environment for public-safety spending remains supportive and should hold up relatively well even in an economic downturn, in our view. Broadcom Inc., a provider of semiconductor and enterprise software solutions, was a strong contributor. The company reported solid results for the most-recent quarter. Revenue was in line with expectations, while EPS was ahead. Broadcom’s guidance for revenue and earnings in the coming quarter was modestly above consensus estimates. Broadcom continues to see steady demand for its products and highlighted artificial intelligence (AI) networking and the recovery in China as areas of strength.

Dover Corp., a diversified industrial products maker and solutions provider, was another notable contributor. Investors reacted positively to the company’s 2023 guidance presented during an earnings call in late January. Dover’s guidance for full-year EPS was ahead of Wall Street analysts’ consensus estimate, driven by stronger-than-expected organic growth along with positive pricing and cost inputs on the margin front. In addition, Dover called out a positive inflection in orders for biopharma connectors (a product used by biopharmaceutical manufacturers, and one of Dover’s highest margin businesses) after multiple quarters of sequential declines.

The Fund’s recent underperformance was largely attributable to our financial sector holdings, which experienced steep declines despite their strong capital positions, diversified business models, and comparably sound investment portfolios.

We think our focus on valuation and quality is especially appropriate right now. We don’t believe that last year’s bear market is over. The full effects of the Fed’s aggressive rate hikes on both the economy and corporate profits still lie ahead, in our view. Leading indicators such as housing, purchasing managers indexes (PMIs), and an inverted yield curve suggest that economic and market conditions will become more challenging. Banks are tightening lending standards, and consensus estimates for corporate earnings, while trending lower, still seem too optimistic to us. In the past, meaningful declines in earnings have presaged a bear market. In addition, the stock market has historically experienced significant declines during Fed easing cycles following the first rate cut. This doesn’t appear to be on most investors’ radar, in our view.

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Performance summaries

Delaware Global Value Equity Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. June 4, 2012)        
Excluding sales charge +5.75% +5.67% +6.73%
Including sales charge -0.36% +4.43% +6.10%
Class C (Est. June 4, 2012)        
Excluding sales charge +4.84% +4.84% +6.15%
Including sales charge +4.21% +4.84% +6.15%
Class I (Est. June 4, 2012)        
Excluding sales charge +5.99% +5.98% +7.07%
Including sales charge +5.99% +5.98% +7.07%
Class R (Est. December 19, 2012)        
Excluding sales charge +5.37% +5.34% +6.41%
Including sales charge +5.37% +5.34% +6.41%
Class R6 (Est. July 31, 2014)        
Excluding sales charge +6.09% +6.12% +6.05%
Including sales charge +6.09% +6.12% +6.05%
Class Y (Est. June 4, 2012)        
Excluding sales charge +5.74% +5.69% +6.80%
Including sales charge +5.74% +5.69% +6.80%
MSCI World Index (net) -7.02% +8.01% +8.85%
MSCI World Index (gross) -6.54% +8.57% +9.44%

1Returns 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 in the “Fund expense ratios” table on page 45. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

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Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.25% 2.04% 0.94% 1.54% 0.79% 1.18%
Net expenses (including fee waivers, if any) 1.17% 1.92% 0.92% 1.42% 0.79% 1.17%
 
Type of waiver Contractual Contractual Contractual Contractual n/a Contractual

 

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Performance summaries

Delaware Global Value Equity Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
MSCI World Index (gross) $10,000 $24,641
MSCI World Index (net) $10,000 $23,357
Delaware Global Value Equity Fund - Class I shares $10,000 $19,809
Delaware Global Value Equity Fund - Class A shares $  9,425 $18,072

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 45. Please note additional details on pages 44 through 46.

The graph also assumes $10,000 invested in the MSCI World Index as of March 31, 2013. 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A IBIAX   465899631  
Class C IBICX   465899615  
Class I IBIIX   465899599  
Class R IYGEX   465899458  
Class R6 IICNX   46600A864  
Class Y IBIYX   465899581  

 

46

Performance summaries

Delaware Ivy Core Bond Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. August 14, 1987)        
Excluding sales charge -4.91% +0.73% +1.54%
Including sales charge -9.21% -0.45% +0.94%
Class C (Est. December 8, 2003)        
Excluding sales charge -5.69% -0.03% +0.93%
Including sales charge -6.61% -0.03% +0.93%
Class I (Est. April 2, 2007)        
Excluding sales charge -4.61% +1.16% +1.93%
Including sales charge -4.61% +1.16% +1.93%
Class R (Est. December 19, 2012)        
Excluding sales charge -5.17% +0.43% +1.24%
Including sales charge -5.17% +0.43% +1.24%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -4.60% +1.16% +1.93%
Including sales charge -4.60% +1.16% +1.93%
Class Y (Est. December 8, 2003)        
Excluding sales charge -4.90% +0.76% +1.58%
Including sales charge -4.90% +0.76% +1.58%
Bloomberg US Aggregate Index -4.78% +0.91% +1.36%

1Returns 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 48. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service (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. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 5.75% to 4.50%.

Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

47

Performance summaries

Delaware Ivy Core Bond Fund

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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 to obtain precise valuations of the high yield securities.

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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 0.98% 1.76% 0.71% 1.34% 0.58% 0.99%
Net expenses (including fee waivers, if any) 0.70% 1.45% 0.45% 0.95% 0.45% 0.70%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

48

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
Delaware Ivy Core Bond Fund - Class I shares $10,000 $12,102
Bloomberg US Aggregate Index $10,000 $11,451
Delaware Ivy Core Bond Fund - Class A shares $  9,425 $10,981

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 5.75% to 4.50%. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations may have been 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 48. Please note additional details on pages 47 through 49.

The graph also assumes $10,000 invested in the Bloomberg US Aggregate Index as of March 31, 2013. The Bloomberg US Aggregate Index is a broad-based benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A IBOAX   465898344  
Class C IBOCX   465898328  
Class I IVBIX   465897775  
Class R IYBDX   465899524  
Class R6 IBNDX   46600A302  
Class Y IBOYX   465898575  

 

49

Performance summaries

Delaware Ivy Core Equity Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. July 3, 2000)        
Excluding sales charge -6.71% +11.25% +10.95%
Including sales charge -12.06% +9.94% +10.30%
Class C (Est. September 21, 1992)        
Excluding sales charge -7.48% +10.31% +10.24%
Including sales charge -8.26% +10.31% +10.24%
Class I (Est. April 2, 2007)        
Excluding sales charge -6.46% +11.48% +11.23%
Including sales charge -6.46% +11.48% +11.23%
Class R (Est. December 19, 2012)        
Excluding sales charge -6.98% +10.84% +10.55%
Including sales charge -6.98% +10.84% +10.55%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -6.44% +11.64% +10.18%
Including sales charge -6.44% +11.64% +10.18%
Class Y (Est. December 29, 1995)        
Excluding sales charge -6.63% +11.41% +11.20%
Including sales charge -6.63% +11.41% +11.20%
S&P 500 Index -7.73% +11.19% +12.24%

1Returns 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 in the “Fund expense ratios” table on page 51. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

50

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

             
Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 0.97% 1.85% 0.79% 1.39% 0.64% 1.04%
Net expenses (including fee waivers, if any) 0.97% 1.75% 0.75% 1.25% 0.64% 1.00%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

51

Performance summaries

Delaware Ivy Core Equity Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
S&P 500 Index $10,000 $31,736
Delaware Ivy Core Equity Fund - Class I shares $10,000 $28,992
Delaware Ivy Core Equity Fund - Class A shares $  9,425 $26,646

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 51. Please note additional details on pages 50 through 52.

The graph also assumes $10,000 invested in the S&P 500 Index as of March 31, 2013. 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.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A WCEAX   466000106  
Class C WTRCX   466000304  
Class I ICIEX   466000163  
Class R IYCEX   465899573  
Class R6 ICEQX   46600A401  
Class Y WCEYX   466000403  

 

52

Performance summaries

Delaware Ivy Global Bond Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. April 4, 2008)        
Excluding sales charge -2.00% +1.42% +1.54%
Including sales charge -6.40% +0.23% +0.94%
Class C (Est. April 4, 2008)        
Excluding sales charge -2.68% +0.68% +0.92%
Including sales charge -3.63% +0.68% +0.92%
Class I (Est. April 4, 2008)        
Excluding sales charge -1.76% +1.66% +1.79%
Including sales charge -1.76% +1.66% +1.79%
Class R (Est. December 19, 2012)        
Excluding sales charge -2.31% +0.95% +1.06%
Including sales charge -2.31% +0.95% +1.06%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -1.75% +1.69% +1.62%
Including sales charge -1.75% +1.69% +1.62%
Class Y (Est. April 4, 2008)        
Excluding sales charge -2.06% +1.41% +1.53%
Including sales charge -2.06% +1.41% +1.53%
Bloomberg 1-10 Year Global Aggregate Index Hedged USD -1.59% +1.20% +1.66%

1Returns 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 in the “Fund expense ratios” table on page 54. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service (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. Effective July 1, 2021, the maximum sales charge imposed on purchases for Class A shares changed from 5.75% to 4.50%.

Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

53

Performance summaries

Delaware Ivy Global Bond Fund

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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 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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.19% 1.97% 0.86% 1.45% 0.70% 1.11%
Net expenses (including fee waivers, if any) 0.96% 1.71% 0.71% 1.21% 0.70% 0.96%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

54

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
Delaware Ivy Global Bond Fund - Class I shares $10,000 $11,939
Bloomberg 1-10 Year Global Aggregate Index Hedged USD $10,000 $11,793
Delaware Ivy Global Bond Fund - Class A shares $  9,425 $10,977

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. Effective July 1, 2021, the maximum sales charge imposed on purchases for Class A shares changed from 5.75% to 4.50%. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations may have been 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 54. Please note additional details on pages 53 through 56.

The graph also assumes $10,000 invested in the Bloomberg 1-10 Year Global Aggregate Index Hedged USD Index as of March 31, 2013. The Bloomberg 1-10 Year Global Aggregate Index Hedged USD provides a broad-based measure of the global investment grade fixed-rate debt market with a maturity of greater than 1 year and less than 10 years. Index returns are currency-hedged, and adjustments are made to the par amount outstanding of bonds for holdings of central governments that are publicly available.

The Bloomberg Global Aggregate Index Hedged USD, mentioned on page 9, provides a broad-based measure of global investment grade fixed-rate debt markets. Index returns are currency-hedged, and adjustments are made to the par amount outstanding of bonds for holdings of central governments that are publicly available.

The US Consumer Price Index (CPI), mentioned on page 9, 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.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

55

Performance summaries

Delaware Ivy Global Bond Fund

  Nasdaq
symbols
  CUSIPs  
Class A IVSAX   465899748  
Class C IVSCX   465899722  
Class I IVSIX   465899714  
Class R IYGOX   465899516  
Class R6 IVBDX   46600A872  
Class Y IVSYX   465899698  

 

56

Performance summaries

Delaware Ivy Global Growth Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. April 30, 1986)        
Excluding sales charge -4.48% +7.16% +7.70%
Including sales charge -9.97% +5.90% +7.07%
Class C (Est. April 30, 1996)        
Excluding sales charge -5.30% +6.23% +7.02%
Including sales charge -5.72% +6.23% +7.02%
Class I (Est. April 2, 2007)        
Excluding sales charge -4.24%* +7.45% +8.04%
Including sales charge -4.24% +7.45% +8.04%
Class R (Est. December 19, 2012)        
Excluding sales charge -4.74% +6.82% +7.40%
Including sales charge -4.74% +6.82% +7.40%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -4.18%* +7.58% +7.15%
Including sales charge -4.18% +7.58% +7.15%
Class Y (Est. July 24, 2003)        
Excluding sales charge -4.50% +7.17% +7.76%
Including sales charge -4.50% +7.17% +7.76%
MSCI ACWI Index (net) -7.44% +6.93% +8.06%
MSCI ACWI Index (gross) -6.96% +7.46% +8.62%

*Total returns for the report period presented in the table differs from the return in “Financial highlights.” The total returns presented in the above table are calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total returns presented in “Financial highlights” are calculated in the same manner, but also takes into account certain adjustments that are necessary under US generally accepted accounting principles required in the annual report.

1Returns 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 in the “Fund expense ratios” table on page 58. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

57

Performance summaries

Delaware Ivy Global Growth Fund

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.27% 2.22% 1.07% 1.66% 0.91% 1.32%
Net expenses (including fee waivers, if any) 1.21% 1.97% 0.97% 1.47% 0.91% 1.22%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

58

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
MSCI ACWI Index (gross) $10,000 $22,859
MSCI ACWI Index (net) $10,000 $21,708
Delaware Ivy Global Growth Fund - Class I shares $10,000 $21,677
Delaware Ivy Global Growth Fund - Class A shares $  9,425 $19,796

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 58. Please note additional details on pages 57 through 59.

The graph also assumes $10,000 invested in the MSCI ACWI Index as of March 31, 2013. The MSCI ACWI (All Country World Index) represents large- and mid-cap stocks across developed and emerging markets worldwide. The index covers approximately 85% of the global investable equity opportunity set. 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A IVINX   465897502  
Class C IVNCX   465897585  
Class I IGIIX   465898724  
Class R IYIGX   465899425  
Class R6 ITGRX   46600A815  
Class Y IVIYX   465897114  

 

59

Performance summaries

Delaware Ivy High Income Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. July 3, 2000)        
Excluding sales charge -6.02% +1.97% +3.38%
Including sales charge -10.28% +0.76% +2.77%
Class C (Est. July 31, 1997)        
Excluding sales charge -6.70% +1.25% +2.80%
Including sales charge -7.57% +1.25% +2.80%
Class I (Est. April 2, 2007)        
Excluding sales charge -5.79% +2.21% +3.63%
Including sales charge -5.79% +2.21% +3.63%
Class R (Est. December 19, 2012)        
Excluding sales charge -6.29% +1.61% +3.02%
Including sales charge -6.29% +1.61% +3.02%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -5.68% +2.35% +3.18%
Including sales charge -5.68% +2.35% +3.18%
Class Y (Est. December 30, 1998)        
Excluding sales charge -6.02% +1.98% +3.38%
Including sales charge -6.02% +1.98% +3.38%
ICE BofA US High Yield Constrained Index -3.58% +3.04% +4.02%

1Returns 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 in the “Fund expense ratios” table on page 61. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service (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. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 5.75% to 4.50%.

Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

60

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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 to obtain precise valuations of the high yield securities.

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.

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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 0.95% 1.70% 0.74% 1.34% 0.60% 0.99%
Net expenses (including fee waivers, if any) 0.95% 1.70% 0.74% 1.25% 0.60% 0.99%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

61

Performance summaries

Delaware Ivy High Income Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
ICE BofA US High Yield Constrained Index $10,000 $14,832
Delaware Ivy High Income Fund - Class I shares $10,000 $14,282
Delaware Ivy High Income Fund - Class A shares $  9,425 $13,144

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 5.75% to 4.50%. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations may have been 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 61. Please note additional details on pages 60 through 62.

The graph also assumes $10,000 invested in the ICE BofA US High Yield Constrained Index as of March 31, 2013. The ICE BofA US High Yield Constrained Index tracks the performance of US dollar-denominated high yield corporate debt publicly issued in the US domestic market, but caps individual issuer exposure at 2% of the benchmark.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A WHIAX   466000668  
Class C WRHIX   466000643  
Class I IVHIX   466000122  
Class R IYHIX   465899490  
Class R6 IHIFX   46600A831  
Class Y WHIYX   466000635  

 

62

Performance summaries

Delaware Ivy International Core Equity Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. May 13, 1997)        
Excluding sales charge -0.55% +1.91% +4.94%
Including sales charge -6.24% +0.71% +4.32%
Class C (Est. May 13, 1997)        
Excluding sales charge -1.23% +1.22% +4.38%
Including sales charge -2.21% +1.22% +4.38%
Class I (Est. April 2, 2007)        
Excluding sales charge -0.17% +2.34% +5.34%
Including sales charge -0.17% +2.34% +5.34%
Class R (Est. December 19, 2012)        
Excluding sales charge -0.78% +1.62% +4.66%
Including sales charge -0.78% +1.62% +4.66%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -0.22% +2.35% +3.28%
Including sales charge -0.22% +2.35% +3.28%
Class Y (Est. July 24, 2003)        
Excluding sales charge -0.46% +1.97% +5.02%
Including sales charge -0.46% +1.97% +5.02%
MSCI ACWI ex USA Index (net) -5.07% +2.47% +4.17%
MSCI ACWI ex USA Index (gross) -4.57% +2.97% +4.65%

1Returns 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 in the “Fund expense ratios” table on page 64. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

63

Performance summaries

Delaware Ivy International Core Equity Fund

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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.

To the extent the Fund invests a significant portion of its assets in a particular geographical region or country, economic, political, social and environmental conditions in that region or country will have a greater effect on Fund performance than they would in a more geographically diversified equity fund and the Fund’s performance may be more volatile than the performance of a more geographically diversified fund.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.36% 2.06% 1.02% 1.63% 0.88% 1.28%
Net expenses (including fee waivers, if any) 1.04% 1.79% 0.79% 1.29% 0.79% 1.04%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

64

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
Delaware Ivy International Core Equity Fund - Class I shares $10,000 $16,823
MSCI ACWI ex USA Index (gross) $10,000 $15,759
Delaware Ivy International Core Equity Fund - Class A shares $10,000 $15,263
MSCI ACWI ex USA Index (net) $  9,425 $15,040

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 64. Please note additional details on pages 63 through 65.

The graph also assumes $10,000 invested in the MSCI ACWI ex USA Index as of March 31, 2013. The MSCI ACWI (All Country World Index) ex USA Index represents large- and mid-cap stocks across developed and emerging markets worldwide, excluding the United States. The index covers approximately 85% of the global investable equity opportunity set outside the United States. 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A IVIAX   465897353  
Class C IVIFX   465897338  
Class I ICEIX   465899706  
Class R IYITX   465899433  
Class R6 IINCX   46600A823  
Class Y IVVYX   465898682  

 

65

Performance summaries

Delaware Ivy International Value Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. September 4, 2001)        
Excluding sales charge +0.23% +2.02% +3.35%
Including sales charge -5.53% +0.82% +2.73%
Class C (Est. October 19, 2001)        
Excluding sales charge -0.49%* +1.29% +2.84%
Including sales charge -1.38% +1.29% +2.84%
Class I (Est. April 2, 2007)        
Excluding sales charge +0.58% +2.44% +3.80%
Including sales charge +0.58% +2.44% +3.80%
Class R (Est. December 19, 2012)        
Excluding sales charge +0.10% +1.86% +3.20%
Including sales charge +0.10% +1.86% +3.20%
Class R6 (Est. July 31, 2014)        
Excluding sales charge +0.58% +2.57% +1.92%
Including sales charge +0.58% +2.57% +1.92%
Class Y (Est. July 24, 2003)        
Excluding sales charge +0.35%* +2.17% +3.54%
Including sales charge +0.35% +2.17% +3.54%
MSCI EAFE Index (net) -1.38% +3.52% +5.00%
MSCI EAFE Index (gross) -0.86% +4.03% +5.50%

*Total returns for the report period presented in the table differs from the return in “Financial highlights.” The total returns presented in the above table are calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total returns presented in “Financial highlights” are calculated in the same manner, but also takes into account certain adjustments that are necessary under US generally accepted accounting principles required in the annual report.

1Returns 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 in the “Fund expense ratios” table on page 67. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

66

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.45% 2.28% 1.08% 1.75% 0.92% 1.34%
Net expenses (including fee waivers, if any) 1.20% 1.95% 0.95% 1.45% 0.92% 1.20%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

67

Performance summaries

Delaware Ivy International Value Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
MSCI EAFE Index (gross) $10,000 $17,076
MSCI EAFE Index (net) $10,000 $16,288
Delaware Ivy International Value Fund - Class I shares $10,000 $14,513
Delaware Ivy International Value Fund - Class A shares $  9,425 $13,096

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 67. Please note additional details on pages 66 through 68.

The graph also assumes $10,000 invested in the MSCI EAFE Index as of March 31, 2013. The MSCI EAFE (Europe, Australasia, Far East) Index represents large- and mid-cap stocks across 21 developed markets, excluding the United States and Canada. 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A ICDAX   465898880  
Class C ICDCX   465898781  
Class I ICVIX   465898112  
Class R IYCUX   465899474  
Class R6 ICNGX   46600A500  
Class Y ICDYX   465897148  

 

68

Performance summaries

Delaware Ivy Large Cap Growth Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. June 30, 2000)        
Excluding sales charge -9.24% +13.41% +14.21%
Including sales charge -14.46% +12.08% +13.53%
Class C (Est. July 3, 2000)        
Excluding sales charge -9.97% +12.49% +13.52%
Including sales charge -10.74% +12.49% +13.52%
Class I (Est. April 2, 2007)        
Excluding sales charge -8.99% +13.75% +14.53%
Including sales charge -8.99% +13.75% +14.53%
Class R (Est. December 29, 2005)        
Excluding sales charge -9.55% +12.98% +13.81%
Including sales charge -9.55% +12.98% +13.81%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -9.01% +13.78% +13.59%
Including sales charge -9.01% +13.78% +13.59%
Class Y (Est. July 6, 2000)        
Excluding sales charge -9.28% +13.40% +14.26%
Including sales charge -9.28% +13.40% +14.26%
Russell 1000 Growth Index -10.90% +13.66% +14.59%

1Returns 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 in the “Fund expense ratios” table on page 70. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

69

Performance summaries

Delaware Ivy Large Cap Growth Fund

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

“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.

Risk is increased in a concentrated portfolio since it holds a limited number of securities with each investment having a greater effect on 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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 0.94% 1.80% 0.77% 1.37% 0.64% 1.02%
Net expenses (including fee waivers, if any) 0.89% 1.64% 0.64% 1.14% 0.64% 0.89%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

70

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
Russell 1000 Growth Index $10,000 $39,043
Delaware Ivy Large Cap Growth Fund - Class I shares $10,000 $38,842
Delaware Ivy Large Cap Growth Fund - Class A shares $  9,425 $35,586

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 70. Please note additional details on pages 69 through 72.

The graph also assumes $10,000 invested in the Russell 1000 Growth Index as of March 31, 2013. 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.

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.

The S&P 500 Index, mentioned on page 19, 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 Institute for Supply Management (ISM) Manufacturing and Non-Manufacturing New Orders Index, mentioned on page 19, monitors new order volume based on the ISM’s surveys of manufacturing and non-manufacturing firms.

The Purchasing Managers’ Index (PMI), mentioned on page 19, is an indicator of the economic health of the manufacturing sector. A PMI reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

71

Performance summaries

Delaware Ivy Large Cap Growth Fund

  Nasdaq
symbols
  CUSIPs  
Class A WLGAX   466000627  
Class C WLGCX   466000593  
Class I IYGIX   466001203  
Class R WLGRX   466000429  
Class R6 ILGRX   46600A799  
Class Y WLGYX   466000585  

 

72

Performance summaries

Delaware Ivy Limited-Term Bond Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. August 17, 2000)        
Excluding sales charge -0.17% +1.16% +0.89%
Including sales charge -2.92% +0.66% +0.63%
Class C (Est. September 21, 1992)        
Excluding sales charge -0.95% +0.40% +0.28%
Including sales charge -1.93% +0.40% +0.28%
Class I (Est. April 2, 2007)        
Excluding sales charge +0.07% +1.39% +1.12%
Including sales charge +0.07% +1.39% +1.12%
Class R (Est. December 19, 2012)        
Excluding sales charge -0.46% +0.80% +0.53%
Including sales charge -0.46% +0.80% +0.53%
Class R6 (Est. July 31, 2014)        
Excluding sales charge +0.11% +1.53% +1.42%
Including sales charge +0.11% +1.53% +1.42%
Class Y (Est. December 29, 1995)        
Excluding sales charge -0.18% +1.16% +0.88%
Including sales charge -0.18% +1.16% +0.88%
Bloomberg 1-3 Year US Government/Credit Index +0.26% +1.27% +1.01%

1Returns 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 in the “Fund expense ratios” table on page 75. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 2.75%, and have an annual distribution and service (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. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 2.50% to 2.75%.

Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

73

Performance summaries

Delaware Ivy Limited-Term Bond Fund

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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 to obtain precise valuations of the high yield securities.

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.

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.

If and when the Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

74

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 0.89% 1.67% 0.68% 1.29% 0.53% 0.93%
Net expenses (including fee waivers, if any) 0.78% 1.53% 0.53% 1.03% 0.53% 0.78%
 
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

 

75

Performance summaries

Delaware Ivy Limited-Term Bond Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

       
    Starting value Ending value
Delaware Ivy Limited-Term Bond Fund - Class I shares $10,000 $11,180
Bloomberg 1-3 Year US Government/Credit Index $10,000 $11,059
Delaware Ivy Limited-Term Bond Fund - Class A shares $  9,750 $10,646

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, and includes the effect of a 2.50% front-end sales charge (for Class A shares) and the reinvestment of all distributions. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 2.50% to 2.75%. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations may have been 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 75. Please note additional details on pages 73 through 76.

The graph also assumes $10,000 invested in the Bloomberg 1-3 Year US Government/Credit Index as of March 31, 2013. The Bloomberg 1-3 Year US Government/Credit Index is a market value-weighted index of government fixed-rate debt securities and investment grade US and foreign fixed-rate debt securities with average maturities of one to three years.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A WLTAX   466000882  
Class C WLBCX   466000866  
Class I ILTIX   466001401  
Class R IYLTX   465899482  
Class R6 ILMDX   46600A781  
Class Y WLTYX   466000858  

 

76

Performance summaries  
Delaware Ivy Managed International Opportunities Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. April 2, 2007)        
Excluding sales charge -3.79% +1.78% +4.45%
Including sales charge -9.32% +0.59% +3.83%
Class C (Est. April 2, 2007)        
Excluding sales charge -4.57% +1.07% +3.90%
Including sales charge -5.39% +1.07% +3.90%
Class I (Est. April 2, 2007)        
Excluding sales charge -3.50% +2.06% +4.73%
Including sales charge -3.50% +2.06% +4.73%
Class R (Est. December 19, 2012)        
Excluding sales charge -4.01% +1.60% +4.28%
Including sales charge -4.01% +1.60% +4.28%
Class R6 (Est. July 5, 2017)        
Excluding sales charge -3.48% +2.06% +3.44%
Including sales charge -3.48% +2.06% +3.44%
Class Y (Est. April 2, 2007)        
Excluding sales charge -3.70% +1.87% +4.54%
Including sales charge -3.70% +1.87% +4.54%
MSCI ACWI ex USA Index (net) -5.07% +2.47% +4.17%
MSCI ACWI ex USA Index (gross) -4.57% +2.97% +4.65%

1Returns 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 may have been 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 in the “Fund expense ratios” table on page 78. If applicable, performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

77

Performance summaries

Delaware Ivy Managed International Opportunities Fund

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.43% 2.32% 1.04% 1.54% 1.04% 1.32%
Net expenses (including fee waivers, if any) 1.43% 2.32% 1.04% 1.54% 1.04% 1.32%
             
Type of waiver n/a n/a n/a n/a n/a n/a

78

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

    Starting value Ending value
Delaware Ivy Managed International Opportunities Fund - Class I shares $10,000 $15,867
MSCI ACWI ex USA Index (gross) $10,000 $15,759
MSCI ACWI ex USA Index (net) $10,000 $15,040
Delaware Ivy Managed International Opportunities Fund - Class A shares $  9,425 $14,561

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 78. Please note additional details on pages 77 through 79.

The graph also assumes $10,000 invested in the MSCI ACWI ex USA Index as of March 31, 2013. The MSCI ACWI (All Country World Index) ex USA Index represents large- and mid-cap stocks across developed and emerging markets worldwide, excluding the United States. The index covers approximately 85% of the global investable equity opportunity set outside the United States. 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq
symbols
  CUSIPs  
Class A IVTAX   465898229  
Class C IVTCX   465898195  
Class I IVTIX   465898179  
Class R IYMGX   465899391  
Class R6 IVTNX   46600A229  
Class Y IVTYX   465898161  

79

Performance summaries  
Delaware Ivy Mid Cap Growth Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. June 30, 2000)        
Excluding sales charge -10.07% +11.92% +11.52%
Including sales charge -15.23% +10.61% +10.86%
Class C (Est. July 3, 2000)        
Excluding sales charge -10.79% +11.07% +10.88%
Including sales charge -11.57% +11.07% +10.88%
Class I (Est. April 2, 2007)        
Excluding sales charge -9.80% +12.33% +11.89%
Including sales charge -9.80% +12.33% +11.89%
Class R (Est. December 29, 2005)        
Excluding sales charge -10.34% +11.52% +11.16%
Including sales charge -10.34% +11.52% +11.16%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -9.80% +12.34% +11.62%
Including sales charge -9.80% +12.34% +11.62%
Class Y (Est. July 10, 2000)        
Excluding sales charge -10.09% +11.93% +11.56%
Including sales charge -10.09% +11.93% +11.56%
Russell Midcap Growth Index -8.52% +9.07% +11.17%

1Returns 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 in the “Fund expense ratios” table on page 81. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

80

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.12% 1.93% 0.95% 1.55% 0.80% 1.19%
Net expenses (including fee waivers, if any) 1.04% 1.79% 0.79% 1.29% 0.79% 1.04%
             
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

81

Performance summaries

Delaware Ivy Mid Cap Growth Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

    Starting value Ending value
Delaware Ivy Mid Cap Growth Fund - Class I shares $10,000 $30,760
Russell Midcap Growth Index $10,000 $28,830
Delaware Ivy Mid Cap Growth Fund - Class A shares $  9,425 $28,051

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, 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 may have been 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 81. Please note additional details on pages 80 through 82.

The graph also assumes $10,000 invested in the Russell Midcap Growth Index as of March 31, 2013. The Russell Midcap Growth Index 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.

The Russell Midcap Value Index, mentioned on page 27, 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.

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 the 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq      
  symbols   CUSIPs  
Class A WMGAX   466000577  
Class C WMGCX   466000551  
Class I IYMIX   466001609  
Class R WMGRX   466000411  
Class R6 IGRFX   46600A765  
Class Y WMGYX   466000544  

82

Performance summaries  
Delaware Ivy Mid Cap Income Opportunities Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. October 1, 2014)        
Excluding sales charge -4.73% +7.62% +8.97%
Including sales charge -10.22% +6.35% +8.21%
Class C (Est. October 1, 2014)        
Excluding sales charge -5.42% +6.81% +8.22%
Including sales charge -6.34% +6.81% +8.22%
Class I (Est. October 1, 2014)        
Excluding sales charge -4.42% +8.02% +9.35%
Including sales charge -4.42% +8.02% +9.35%
Class R (Est. October 1, 2014)        
Excluding sales charge -4.99% +7.26% +8.59%
Including sales charge -4.99% +7.26% +8.59%
Class R6 (Est. October 1, 2014)        
Excluding sales charge -4.37% +8.05% +9.39%
Including sales charge -4.37% +8.05% +9.39%
Class Y (Est. October 1, 2014)        
Excluding sales charge -4.68% +7.63% +8.98%
Including sales charge -4.68% +7.63% +8.98%
Russell Midcap Index -8.78% +8.05% +8.95%*

*The benchmark lifetime return is calculated using the Fund’s inception date.

1Returns 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 in the “Fund expense ratios” table on page 84. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

83

Performance summaries

Delaware Ivy Mid Cap Income Opportunities Fund

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

There is no guarantee that dividend-paying stocks will continue to pay dividends.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense
ratios
Class A Class C Class I Class R Class R6 Class Y
Total annual operating expenses (without fee waivers) 1.26% 2.01% 1.07% 1.63% 0.89% 1.30%
Net expenses (including fee waivers, if any) 1.08% 1.83% 0.83% 1.33% 0.83% 1.08%
             
Type of waiver Contractual Contractual Contractual Contractual Contractual Contractual

84

Performance of a $10,000 investment1

For the period October 1, 2014 (Fund's inception) through March 31, 2023

    Starting value Ending value
Delaware Ivy Mid Cap Income Opportunities Fund - Class I shares $10,000 $21,367
Russell Midcap Index $10,000 $20,728
Delaware Ivy Mid Cap Income Opportunities Fund - Class A shares $  9,425 $19,557

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on October 1, 2014, 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 may have been 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 84. Please note additional details on pages 83 through 85.

The graph also assumes $10,000 invested in the Russell Midcap Index as of October 1, 2014. The Russell Midcap Index measures the performance of the mid-cap segment of the US equity universe. The Russell Midcap Index is a subset of the Russell 1000® Index.

The Institute for Supply Management (ISM) Manufacturing Prices Index, mentioned on page 31, monitors pricing trends based on the ISM’s surveys of manufacturing firms.

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 the 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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq      
  symbols   CUSIPs  
Class A IVOAX   46600B102  
Class C IVOCX   46600B201  
Class I IVOIX   46600B409  
Class R IVORX   46600B508  
Class R6 IVOSX   46600B607  
Class Y IVOYX   46600B706  

85

Performance summaries  
Delaware Ivy Municipal Bond Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. September 15, 2000)        
Excluding sales charge -3.83% +0.15% +1.01%
Including sales charge -8.18% -0.72% +0.58%
Class C (Est. September 21, 1992)        
Excluding sales charge -4.65% -0.69% +0.37%
Including sales charge -5.58% -0.69% +0.37%
Class I (Est. November 4, 2009)        
Excluding sales charge -3.62% +0.32% +1.19%
Including sales charge -3.62% +0.32% +1.19%
Class R6 (Est. July 5, 2017)        
Excluding sales charge -3.60% +0.41% +0.55%
Including sales charge -3.60% +0.41% +0.55%
Bloomberg Municipal Bond Index +0.26% +2.03% +2.38%

1Returns 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 in the “Fund expense ratios” table on page 87. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service (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. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 4.25% to 4.50%.

Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. Class R6 shares are available only to certain types of 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,

86

temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult to obtain precise valuations of the high yield securities.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense ratios Class A Class C Class I Class R6
Total annual operating expenses (without fee waivers) 0.87% 1.67% 0.72% 0.58%
Net expenses (including fee waivers, if any) 0.80% 1.55% 0.55% 0.55%
         
Type of waiver Contractual Contractual Contractual Contractual

87

Performance summaries

Delaware Ivy Municipal Bond Fund

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

    Starting value Ending value
Bloomberg Municipal Bond Index $10,000 $12,655
Delaware Ivy Municipal Bond Fund - Class I shares $10,000 $11,256
Delaware Ivy Municipal Bond Fund - Class A shares $  9,575 $10,591

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, and includes the effect of a 4.25% front-end sales charge (for Class A shares) and the reinvestment of all distributions. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 4.25% to 4.50%. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations may have been 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 87. Please note additional details on pages 86 through 88.

The graph also assumes $10,000 invested in the Bloomberg Municipal Bond Index as of March 31, 2013. The Bloomberg Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

The US Consumer Price Index (CPI), mentioned on page 32, 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.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq      
  symbols   CUSIPs  
Class A WMBAX   466000841  
Class C WMBCX   466000825  
Class I IMBIX   46601B101  
Class R6 IMBNX   46600A211  

88

Performance summaries  
Delaware Ivy Municipal High Income Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. May 18, 2009)        
Excluding sales charge -6.78% +0.57% +1.69%
Including sales charge -11.04% -0.29% +1.25%
Class C (Est. May 18, 2009)        
Excluding sales charge -7.44% -0.13% +1.11%
Including sales charge -8.33% -0.13% +1.11%
Class I (Est. December 30, 1998)        
Excluding sales charge -6.53% +0.84% +1.92%
Including sales charge -6.53% +0.84% +1.92%
Class R6 (Est. July 5, 2017)        
Excluding sales charge -6.55% +0.87% +1.11%
Including sales charge -6.55% +0.87% +1.11%
Class Y (Est. May 18, 2009)        
Excluding sales charge -6.79% +0.57% +1.69%
Including sales charge -6.79% +0.57% +1.69%
Bloomberg Municipal Bond Index +0.26% +2.03% +2.38%

1Returns 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 in the “Fund expense ratios” table on page 90. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service (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. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 4.25% to 4.50%.

Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. Class R6 shares are available only to certain types of 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.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

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

89

Performance summaries

Delaware Ivy Municipal High Income Fund

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 to obtain precise valuations of the high yield securities.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Duration measures a bond’s sensitivity to interest rates, by indicating the approximate percentage of change in a bond or bond fund’s price given a 1% change in interest rates.

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.

2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.

Fund expense ratios Class A Class C Class I Class R6 Class Y
Total annual operating expenses (without fee waivers) 0.89% 1.71% 0.75% 0.60% 1.00%
Net expenses (including fee waivers, if any) 0.86% 1.58% 0.61% 0.60% 0.86%
           
Type of waiver Contractual Contractual Contractual Contractual Contractual

90

Performance of a $10,000 investment1

For the period March 31, 2013 through March 31, 2023

    Starting value Ending value
Bloomberg Municipal Bond Index $10,000 $12,655
Delaware Ivy Municipal High Income Fund - Class I shares $10,000 $12,098
Delaware Ivy Municipal High Income Fund - Class A shares $  9,575 $11,326

1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on March 31, 2013, and includes the effect of a 4.25% front-end sales charge (for Class A shares) and the reinvestment of all distributions. Effective July 1, 2021, the maximum front-end sales charge imposed on purchases for Class A shares changed from 4.25% to 4.50%. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations may have been 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 90. Please note additional details on pages 89 through 91.

The graph also assumes $10,000 invested in the Bloomberg Municipal Bond Index as of March 31, 2013. The Bloomberg Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

The US Consumer Price Index (CPI), mentioned on page 38, 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 household.

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 does not guarantee future results.

Performance of other Fund classes will vary due to different charges and expenses.

  Nasdaq      
  symbols   CUSIPs  
Class A IYIAX   466001849  
Class C IYICX   466001765  
Class I WYMHX   466001757  
Class R6 IYINX   46600A195  
Class Y IYIYX   466001740  

91

Performance summaries  
Delaware Ivy Small Cap Growth Fund March 31, 2023 (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 March 31, 2023
  1 year 5 year 10 year Lifetime
Class A (Est. July 3, 2000)        
Excluding sales charge -14.90% +5.10% +8.87%
Including sales charge -19.78% +3.86% +8.22%
Class C (Est. September 21, 1992)        
Excluding sales charge -15.56% +4.31% +8.26%
Including sales charge -16.33% +4.31% +8.26%
Class I (Est. April 2, 2007)        
Excluding sales charge -14.68% +5.47% +9.25%
Including sales charge -14.68% +5.47% +9.25%
Class R (Est. December 29, 2005)        
Excluding sales charge -15.18% +4.75% +8.55%
Including sales charge -15.18% +4.75% +8.55%
Class R6 (Est. July 31, 2014)        
Excluding sales charge -14.67% +5.49% +8.75%
Including sales charge -14.67% +5.49% +8.75%
Class Y (Est. December 29, 1995)        
Excluding sales charge -14.91% +5.11% +8.93%
Including sales charge -14.91% +5.11% +8.93%
Russell 2000 Growth Index -10.60% +4.26% +8.49%

1Returns 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 in the “Fund expense ratios” table on page 93. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (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 C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.

Class I shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class I shares pay no 12b-1 fee.

Effective July 1, 2021, Class N shares were renamed Class R6 shares. 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.

92

Class R shares are available only for certain retirement plan products. They are sold without a sales charge and have an annual 12b-1 fee of 0.50% of average daily net assets.

Class Y shares are available only to certain investors. Class Y shares have an annual 12b-1 fee of 0.25% of average daily net assets.

Investing in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.