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Ivy Funds – ‘N-CSR’ for 9/30/23

On:  Wednesday, 12/6/23, at 4:59pm ET   ·   Effective:  12/6/23   ·   For:  9/30/23   ·   Accession #:  1206774-23-1307   ·   File #:  811-06569

Previous ‘N-CSR’:  ‘N-CSR’ on 9/5/23 for 6/30/23   ·   Latest ‘N-CSR’:  This Filing   ·   5 References:   By:  Ivy Funds – ‘497’ on 3/4/24 By:  Delaware Group Ltd.-Term Government Funds – ‘497’ on 2/27/24 By:  Ivy Funds – ‘485BPOS’ on 1/26/24 By:  Delaware Group Ltd.-Term Government Funds – ‘N-14’ on 1/18/24 By:  Ivy Funds – ‘N-14’ on 1/18/24 

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

12/06/23  Ivy Funds                         N-CSR       9/30/23    3:3.6M                                   DG3/FA
          → Delaware Ivy Corporate Bond Fund ⇒ Class A (IBJAX) — Class C (IBJCX) — Class I (IBJIX) — Class Y (IBJYX)
          → Delaware Ivy Government Securities Fund ⇒ Class A (IGJAX) — Class C (IGJCX) — Class I (IGJIX) — Class R6 (IGJNX)
          → Delaware Ivy High Yield Fund ⇒ Class A (IPNAX) — Class I (IPNIX) — Class R6 (IPNNX)
          → Delaware Ivy Multi-Asset Income Fund ⇒ Class A (IMAAX) — Class C (IMACX) — Class I (IMAIX) — Class R6 (IMURX) — Class Y (IMAYX)
          → Delaware Ivy Total Return Bond Fund ⇒ Class A (IRBAX) — Class C (IRBCX) — Class I (IRBIX) — Class R6 (IRBRX)
          → Delaware Sustainable Equity Income Fund ⇒ Class A (IDAAX) — Class I (IDAIX) — Class R (IDARX) — Class R6 (IDANX)

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       Annual Certified Shareholder Report by an           HTML   3.05M 
                Investment Company                                               
 3: EX-99.906 CERT  Certification -- §906 - SOA'02                  HTML      7K 
 2: EX-99.CERT  Certification -- §302 - SOA'02                      HTML     23K 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Item 1. Reports to Stockholders

Annual report

Ivy Funds

Delaware Ivy Corporate Bond Fund

Delaware Ivy Government Securities Fund

Delaware Ivy High Yield Fund

Delaware Ivy Multi-Asset Income Fund

Delaware Ivy Total Return Bond Fund

September 30, 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

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

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 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 Ivy Corporate Bond Fund, Delaware Ivy Government Securities Fund, Delaware Ivy High Yield Fund, Delaware Ivy Multi-Asset Income Fund, and Delaware Ivy Total Return Bond 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 September 30, 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

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Corporate Bond Fund, please see the table on page 11.

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 13 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 Fund’s fiscal year ended September 30, 2023, began much as the previous period ended, with investment grade debt weakening further as the US Federal Reserve continued its assault on inflation by raising interest rates. In the final quarter of 2022, however, the investment grade market showed marked signs of improvement with indications that the Fed’s aggressive series of rate hikes was achieving its desired effect. That fueled investor demand as yields reached historically attractive levels.

While the full calendar year 2022 was one of the weakest ever for fixed income markets, investors had cause for optimism when 2023 began.

Investor sentiment reversed abruptly in March 2023 with the collapse of Silicon Valley Bank (SVB). We held SVB in the Fund during the fiscal year. While the bank’s sudden failure was an isolated event involving a large percentage of uninsured deposits, mismatched liabilities, and inadequate risk management, it set off a near panic that threatened to engulf the entire regional banking sector. The Fed’s quick action, however, enabled banks to meet obligations without having to sell bonds at a loss, as SVB did. While that was sufficient to stabilize the US banking system, it did not prevent Credit Suisse Group from succumbing to investor pressure. Only the intervention of the Swiss authorities, which engineered a takeover by UBS Group, eased the looming banking crisis.

Throughout the fiscal period, we anticipated several potential pitfalls that, surprisingly in our view, did not materialize. The war in Ukraine is a case in point. While the invasion began before the Fund’s fiscal year started, the conflict continued throughout the 12-month period. As did most of Europe, we anticipated supply disruptions, particularly for food, energy, and several vital commodities. We thought that the war, taking place in the breadbasket of Europe, would have an adverse impact throughout the region and beyond. Early in the war, Russia shut down a large natural gas supply that threatened the winter heating season in Europe. This pressured energy prices, and food prices increased as well – though perhaps due largely to already high overall inflation because of factors unrelated to the war – but all in all, we were surprised by how well financial markets navigated the situation.

Our concern about Europe was much broader than the war in Ukraine. When Credit Suisse showed signs of distress, we thought that higher energy costs, food shortages, and supply disruptions combined with banking turmoil would lead the region into a recession. Here again, our concern did not manifest itself. Demand, and the ability to navigate the supply-side disruptions, has been noteworthy, in our view.

We think that central banks – the Fed and the European Central Bank (ECB) in particular – deserve credit for their handling of the inflationary pressures that took hold in the wake of the pandemic and the lifting of economic lockdowns. In all candor, we thought the Fed should have gone slower and waited to see if any negative effects resulted from its aggressive rate-tightening regime. The Fed raised rates six times during the 12-month period, taking the federal funds rate from 3.00% in September 2022 to 5.25% in September 2023. Much to our surprise, the housing market barely reacted, labor markets were incredibly resilient, and bank lending conditions didn’t cause massive deterioration on Main Street. While you could argue that SVB was a casualty, we think that was the direct result of a management team that took its eye off the ball from a risk-management perspective.After four to five years of near-zero interest rates, the Fed has taken notable steps toward achieving its goal without severe damage to the economy.

The ECB has been just as aggressive, with similar results. For the past few years, interest rates in Europe had been near zero, even negative. In just 18 months though, the ECB brought rates nearly in line with the Fed. That has created a bit of a headwind for US credit markets. With higher interest rates, investing in Europe became more attractive than it had been for the past five years. While the investment grade market in the US had benefited from offshore

Portfolio management reviews

Delaware Ivy Corporate Bond Fund

investors’ demand, we were not surprised that as European rates increased, the US market grew less attractive to offshore investors.

What did surprise us is that demand for investment grade corporate bonds increased from US entities during the same period. Now that yields are in the 5.5% to 6.0% range, we are seeing increased demand domestically from pension funds, companies, and individual investors. As the fiscal period ended, inflation remained still stubbornly elevated. But at these yields, even if inflation recedes, the real yield could exceed anything that investors have seen in years. In the near term, we believe investors’ return on fixed income may even exceed the return on stocks in a mediocre equity market.

High yield bonds outperformed investment grade credits during the Fund’s fiscal year. High yield benefited from less rate sensitivity when rates steadily advanced early in the fiscal year. More recently, macroeconomic conditions were favorable, and investor sentiment was positive. With investors holding the Fed in a favorable light, a risk-on mood generated strong performance in high yield.

Source: Bloomberg, unless otherwise noted.

Within the Fund

For the fiscal year ended September 30, 2023, Delaware Ivy Corporate Bond Fund posted a positive return but underperformed its benchmark, the Bloomberg US Corporate Bond Index. The Fund’s Class I shares gained 2.94%. The Fund’s Class A shares gained 2.66% at net asset value and declined 1.98% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the benchmark gained 3.65%. For complete, annualized performance of Delaware Ivy Corporate Bond Fund, please see the table on page 11.

Given the difficulties in navigating a fraught investment environment, we think it is notable that only a few of our investments markedly underperformed, the most significant of which was SVB. On the plus side, the Fund benefited from its underweight positioning in the long end of the curve and its slight overweight positioning in the front end, as rates have been on a steady upward increase since April of 2023.

We were concerned early in the Fund’s fiscal year that a consumer slowdown, higher inflation that adversely affected profit margins, and the ongoing war in Ukraine were all risks confronting the Fund. We wanted to adopt a more defensive position and we achieved that by reducing the Fund’s spread duration positioning relative to the benchmark, primarily within the electric and banking sectors.

During the fiscal year, the Fund benefited by underweighting longer-dated issues in the electric sector as well as underweighting the sector as a whole. Electric utilities have a longer duration profile and defensive characteristics compared to most other sectors in the benchmark, which worked against it amid a backdrop of tightening spreads and rising rates. The Fund also benefited from security selection in capital goods, particularly its investments in aerospace-defense and environmental. Finance was another contributor, stemming from the Fund’s exposure to shorter-dated aircraft lessors that reported solid operating metrics during the 12-month period.

Banking was the weakest-performing sector during the fiscal period, due to the Fund’s exposure to SVB. We generally consider regional banks to be more defensive than the large money-center banks, given that the smaller banks engage in less trading and merger and acquisition activity, which can be problematic when capital markets enter a downturn. And while we were roughly evenly weighted to regional banks as a whole, the Fund’s overweight to SVB was the deciding factor that weighed on the banking sector’s performance.

The Fund’s overweight to longer dated issues within the brokerage/ asset management sector, also detracted from performance during a period of rising interest rates. The Fund’s exposure to Treasurys likewise detracted from performance. As part of our defensive posture, we had built up some cash in the portfolio. We hedged that with Treasurys to add some duration. In a period of rising interest rates, however, that detracted from performance.

Looking at individual credits, the strongest contributors included several aircraft lessors and airline issues, including Air Lease Corp., United Airlines Inc., and AerCap Ireland Capital DAC, as these issuers posted strong performance amid robust travel bookings and strong demand for aircraft. The Fund’s shorter-duration holdings in these names also contributed as rates rose during the fiscal year.

SVB, UnitedHealth Group Inc., and Oglethorpe Power Corp. were the leading detractors from the Fund’s performance during the fiscal year. UnitedHealth Group and Oglethorpe Power both lagged given the long duration of the positions held as rates surged over the fiscal period amid continued hawkish Fed policy.

Portfolio management reviews

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Government Securities Fund, please see the table on page 14.

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 16 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 September 30, 2023, was a time of significant uncertainty in the financial markets. Fixed income markets began the period with investors questioning how high the Federal Open Market Committee (FOMC) would need to raise the federal funds rate, when it would begin to slow the pace of its rate hikes, and when it would be able to stop rate hikes altogether.

We have the answer to only one of those questions so far. The US Federal Reserve reduced the pace of its rate increases from 75 basis points to 50 basis points in December 2022, and from 50 basis points to 25 basis points in February 2023. (A basis point equals one hundredth of a percentage point.) The Fed also decided to “skip” hiking rates in June and September 2023. At this point, we believe the hiking cycle should be near an end, although there is a chance of another rate increase in 2023 and potentially in 2024 since the Fed’s decision making remains data dependent.

Investor sentiment pulled back abruptly in March 2023 with the collapse of Silicon Valley Bank (SVB). While the bank’s sudden failure was an isolated event involving a large percentage of uninsured deposits, mismatched liabilities, and inadequate risk management, it set off a near panic that threatened to engulf the entire regional banking sector. In response, the Fed created the Bank Term Funding Program (BTFP), which enabled banks to meet obligations without having to sell securities at a loss, as SVB did, therefore ending the panic in relatively short order. The Fed showed that reducing the federal funds rate would not be the first line of defense during a crisis, as it applied macroprudential tools – policies aimed at ensuring the stability of the financial system – developed during the global financial crisis and the pandemic.

Once it became clear that the regional bank crisis would not spread to other sectors or send the economy into an immediate recession, the Fed continued along a data-dependent path. In fact, the Fed,along with other global central banks, hiked rates during March 2023 as the crisis unfolded. While inflation has receded, most central banks remain concerned that inflation has not pulled back quickly enough and has not yet reached their targets. Although the Fed has slowed the pace of the hikes, and has skipped hikes while it waits for the long and variable lags to work their way through the economy, the Fed continues to talk about remaining “higher for longer.”

While we’re not completely on board with the “higher for longer” mantra, we do believe the Fed can remain restrictive for a long period as witnessed in the 1980s and 1990s. At this point, central banks do not want to repeat the inflationary history of the 1970s and 1980s while they wait for a potential cyclical recession in the next 6 to 12 months to solve the inflation issue.

Source: Bloomberg, unless otherwise noted.

Within the Fund

For the fiscal year ended September 30, 2023, Delaware Ivy Government Securities Fund underperformed its benchmark, the Bloomberg US Government/Mortgage-Backed Securities Index. The Fund’s Class I shares fell 1.71%. The Fund’s Class A shares declined 1.96% at net asset value and fell 6.44% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the benchmark declined 0.51%. For complete, annualized performance of Delaware Ivy Government Securities Fund, please see the table on page 14.

To start the period, the Fund had underweight allocations to duration and agency mortgage-backed securities (MBS) relative to the benchmark, which contributed to performance. During the year, we added duration as yields rose and purchased agency MBS as spreads widened. Adding duration and agency MBS was initially beneficial to performance. However, as yields continued to rise, owning more duration than the benchmark began to weigh on performance and was ultimately the largest detractor from the Fund’s performance for the fiscal year.

Portfolio management reviews

Delaware Ivy Government Securities Fund

The Fund is longer duration than the benchmark as of fiscal year end and has close to a neutral weight in agency MBS. We expect to continue adding agency MBS if spreads remain wide or widen further.

The Fund’s US Treasury holdings were positioned with a flattening bias at the beginning of the fiscal year, which helped performance. As we added duration, we moved from a flattening bias to a steepening bias as we anticipated that the Fed’s rate hiking cycle may be nearing its end.

At fiscal year end, we believe the Fund is well positioned, as the Fed has raised the federal funds rate by more than 500 basis points since March 2022, and agency MBS spreads have widened to approximately 180 basis points, which we view as an attractive level on a historical basis to add MBS exposure.

Portfolio management reviews

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy High Yield Fund, please see the table on page 17

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 19 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

Volatility dominated the high yield bond market during the Fund’s fiscal year ended September 30, 2023. Throughout the period, each new release of economic data and every pronouncement by the US Federal Reserve ignited speculation about the onset of recession. With each new change in outlook, the market underwent a roller coaster of ups and downs.

Inconsistent data points and the varying outlook led to market leadership alternating monthly. The Fed expressed hawkish views and took aggressive actions at the start of the Fund’s fiscal year. This pushed up the yield on 10-year US Treasurys. High yield securities sustained monthly losses and rate-sensitive BB-rated bonds fared the worst.

As fear of recession increased, lower-quality CCC-rated bonds underperformed. Then, as recession fears receded on better-than-expected earnings reports, the high yield market rallied. This volatile pattern of data-dependent monthly gyrations continued throughout the 12-month period.

Source: Bloomberg, unless otherwise noted.

Within the Fund

For the fiscal year ended September 30, 2023, Delaware Ivy High Yield Fund posted a positive return but underperformed its benchmark, the ICE BofA US High Yield Constrained Index. The Fund’s Class I shares gained 10.07%. The Fund’s Class A shares advanced 9.81% at net asset value and gained 4.81% at maximum offer price. These figures reflect all distributions reinvested. During the same period, the Fund’s benchmark gained 10.19%. For complete, annualized performance of Delaware Ivy High Yield Fund, please see the table on page 17.

Liquidity, a key consideration while managing the portfolio’s risk through a volatile market, is challenging. Seemingly in an instant, risk-on sentiment can become risk-off, whipsawing investors. We were satisfied with the portfolio’s overall positioning throughout the Fund’s fiscal period. Our focus was on individual credit selection, and earnings played a key role in determining individual credit performance.

We had a constructive long-term view, which we retain. We believe that it’s possible for the Fed to achieve a soft landing in which it manages to either tame inflation by slowing the economy without triggering a recession or limits a recession to a fairly shallow decline over a brief period. With that in mind, we were content with a yield profile that exceeded the benchmark by 20 to 30 basis points over the Fund’s entire fiscal year. (A basis point equals one hundredth of a percentage point.) Because of that long-term view, we were comfortable holding some securities that appeared to have higher levels of short-term risk.

We didn’t make any major shifts to the portfolio’s composition during the Fund’s fiscal year. Our goal was to out-yield the benchmark while we maintained a duration-neutral stance. We do this through all market cycles since doing so isolates the Fund’s risk exposure to a focus on credit, rather than interest-rate-related risk.

Sectors that generally outperformed were commodities-related: metals and mining as well as energy. Copper companies dominate the metals and mining industry in the high yield market. Copper prices were elevated during the Fund’s fiscal year.This led to a strong tailwind for copper-mining companies as they generated significant free cash flow. In our view, copper was a good place to seek shelter in a volatile market.

Similarly, energy generally enjoyed a favorable environment during the fiscal year. Oil companies did well. The constructive outlook for these commodities tended to shine a positive light on companies in oil and other commodities-based industries.

Housing rebounded somewhat after taking it on the chin in the Fund’s previous fiscal year ended September 30, 2022, when rising interest

Portfolio management reviews

Delaware Ivy High Yield Fund

rates had made houses less affordable. In the current period, however, low inventories, despite higher rates, supported the housing market.

Sectors that underperformed during the Fund’s fiscal year included broadcasting, telecommunications, and cable. All three of these sectors tend to have somewhat levered balance sheets and all three have generally faced a bit of a secular decline or challenge within their business models. They are often highly levered and have maturity walls that typically begin in 2025. A prevailing concern here is that in the event of a recession, access to capital markets could dry up, posing problems for firms that must rebalance their balance sheets.

Individual credits that contributed the most to the Fund’s performance included Royal Caribbean Cruises Ltd. and Carnival Corp. Our fundamental outlook for the cruise-line industry has been very favorable. Earnings have been encouraging, and both companies are doing what they said they would do. Pre-COVID-19, they were both investment grade credits. Their management teams seek to return to investment grade status within two to three years. Both Royal Caribbean and Carnival are performing well, exceeding their pre-pandemic passenger volumes. Their free cash flow profiles continue to improve. In summary, we believe they are on target to reach their multiyear financial-recovery goals.

The largest detractors included Altice France SA, a French wireless company, and Altice USA Inc., the former Cablevision Systems, a cable service that predominantly operates in the New York City metropolitan market. Altice USA has levered balance sheets,aggressive capital expenditures, and minimal free cash flow. In a rising-rate environment, it risks losing access to capital markets next year to refinance its balance sheets. The prospect of rising cost of capital further weighed on its free cash flow profile.

Both businesses did perform fairly well, however, and we still own both holdings. Although we recognize the near-term risks these companies face, we remain constructive on their long-term outlook. One positive, in our opinion, is the existence of a larger set of refinancing options for these firms. These include asset-backed securities, private financing, the public bond market, and the loan market.

At the Fund’s fiscal year end, we believe we are situated quite well in terms of how we manage the Fund, even if this uncertain and turbulent market environment were to continue. Market volatility presents dislocations at times when the fundamentals don’t always match current valuations. We think that could lead to our finding opportunities in what we view as attractively valued securities. The key, in our view, is to remain disciplined and cautious, turning over every rock and seeking out opportunities as they arise.

The Fund’s positioning is consistent in terms of seeking slightly higher yield than the benchmark. With liquidity in this environment not supporting major shifts in risk exposure, our focus is on fundamental elements of portfolio management and ensuring that we are comfortable with our exposure to each security from a fundamental standpoint. This can include taking advantage of opportunities to move up or down in the capital structure on certain holdings depending on volatility and the attractiveness of valuations.

Portfolio management reviews

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Multi-Asset Income Fund, please see the table on page 20.

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 22 for a description of the indices. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Investment objective

The Fund seeks to provide a high level of current income. Capital appreciation is a secondary objective.

Market review

The fiscal year ended September 30, 2023, began on an encouraging note. Most equities advanced and the US and European broad indices posted substantial gains. Chinese equities and large US technology stocks, on the other hand, did not fare well. Bond yields, in general, shifted only moderately. While US bond yields continued to rise, yields on peripheral euro bonds and others fell. Risk premiums on global investment grade corporate bonds remained largely stable, while those in the high yield segment fell, leading to price gains. UK government bonds also posted strong gains, but only after initially suffering heavy losses due to the political turmoil resulting from Prime Minister Liz Truss’s resignation after just 44 days in office. The swift appointment of Rishi Sunak as prime minister finally calmed markets, enabling bonds to rally and the British pound to recover somewhat.

Instead of a typical year-end market rally, equities and bonds suffered significant losses in December 2022. The major central banks raised key interest rates, though by less than previously. The US Federal Reserve and the European Central Bank (ECB) each raised rates by 0.50 percentage points, for example. However, ECB president Christine Lagarde stated that significantly higher interest rates were still needed, causing yields to rise sharply and prices to fall. In Europe, bonds lost much more than stocks, while the reverse occurred in the US, as tech stocks slipped again. China surprised many by ending its zero-COVID policy. Japan slightly tightened its monetary policy, which helped firm up the yen. Meanwhile, the US dollar lost some ground.

Beginning in 2023, there was a positive reversal of trends from the challenges and large drawdowns that characterized most of 2022.

The equity and bond markets started the year strong on the heels of China’s reopening and hope for falling inflation. Although headline inflation rates tended to fall thanks to the downtrend in energy prices, core inflation often continued to rise.

Three US regional banks collapsed in March and Switzerland’s Credit Suisse experienced severe turbulence before its acquisition by UBS Group AG. 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.

Stock markets of developed countries trended slightly positive as the second quarter of 2023 began, although, at times, North American equities were under water. Europe and the Pacific region were the strongest performers whereas emerging markets, led by China, slipped into negative territory.

In June, risk appetites prevailed as equity markets performed strongly, particularly in Japan and the US, although, in general, equity performance was somewhat bumpy. After Congress passed the US debt ceiling regulation in early June, equities rallied significantly. The positive phase was short lived, however, when there was a large downturn following the central bank meetings of the Fed and the ECB. Only toward the end of June, after several surprisingly good US economic data points were released, did strong performance once again ensue.

The third quarter of 2023 was a challenge for markets as most major asset classes declined for the period largely due to the continued tightening of monetary policy by central banks around the world. In the US, the Fed continued hiking rates, while in September, the Federal Open Market Committee increased its interest rate outlook with the latest dot plot calling for a median federal funds rate of 5.6% at the end of 2023. Other central banks also continued to raise interest rates. The ECB raised short-term policy rates to the highest

Portfolio management reviews

Delaware Ivy Multi-Asset Income Fund

level in more than 20 years. China continued to be the contrarian among major economies, easing both fiscal and monetary policy.

Higher rates make servicing debt more difficult, especially for governments running large budget deficits. None of this was lost on Fitch Ratings. It downgraded the US credit rating in August from AAA to AA+, focusing attention on the US government, which carries a national debt of more than $33 trillion.

Capital markets reacted accordingly, starting with a selloff in bonds as interest rates soared globally. The 10-year Treasury yield peaked at a level not seen since 2007. Similar trends were observed globally with both 10-year German and Japanese government bonds rising to levels not seen in a decade.

Global equities mostly suffered losses. Energy stocks were an exception as oil prices rose during the quarter. Crude oil had its biggest quarterly gain since the Russian invasion of Ukraine began in early 2022. This followed news that Saudi Arabia and Russia were extending productions cuts until the end of 2023, reducing the overall supply to markets.

Source: Bloomberg, unless otherwise noted.

Within the Fund

For the fiscal year ended September 30, 2023, Delaware Ivy Multi-Asset Income Fund posted a positive return but underperformed its blended benchmark, the 50% MSCI ACWI (All Country World Index) / 50% ICE BofA US High Yield Index. The Fund’s Class I shares gained 10.95%. The Fund’s Class A shares advanced 10.53% at net asset value and gained 4.21% at maximum offer price. These figures reflect all distributions reinvested. For the same period the Fund’s benchmark gained 15.53%. For complete annualized performance of Delaware Ivy Multi-Asset Income Fund, please see the table on page 20.

Both allocation and security selection effects detracted from the Fund’s performance. One large detractor was the Fund’s underweight, relative to the benchmark, of global equities, which outperformed other invested asset classes during the fiscal year.

On the equity side, natural resources and real estate underperformed relative to global equities, which performed strongly over the trailing period owing in part to the outperformance of a small number of growth stocks. While security selection detracted from performance, the underlying strategies of global equities and global natural resources also detracted. Global listed infrastructure contributed from a stock-selection standpoint.

On the fixed income side, the Fund’s overweight to high yield corporate bonds relative to the benchmark contributed to performance, as credit spreads were tight for the fiscal year. The allocation to multisector fixed income detracted as it was one of the poorest-performing asset classes over the period. From a security selection standpoint, all fixed income underlying holdings contributed.

We periodically examine the contribution of derivatives to the Fund’s performance. Based on the available information, the Fund’s derivative positions had no material impact on performance.

Portfolio management reviews

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Ivy Total Return Bond Fund, please see the table on page 24.

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 26 for a description of the indices. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Investment objective

The Fund seeks to provide total return through a combination of current income and capital appreciation.

Significant Fund event

Effective July 31, 2023, the Fund changed its benchmark index from the Bloomberg Global Aggregate 1-10 Year Index, Hedged to USD, to the Bloomberg Global Aggregate Bond Index, Hedged to USD.

Market review

Mirroring the previous fiscal period, fixed income markets were highly volatile during the fiscal year ended September 30, 2023. During the fiscal year, the 10-year US Treasury traded in a 130-basis-point range (a basis point equals one hundredth of a percentage point), ultimately ending the period at the one-year high in yield, nearly 4.60%. Multiple factors drove the volatility, most notably more-resilient-than-expected economic growth momentum, particularly in the US. Inflation remained a factor as well, despite headline readings that were well off the 2022 highs, with evidence of stickiness in service industries. Technicals also played a role, particularly in the period’s final quarter, with significant bond supply hitting an already weary market. Weakness in the fixed income markets had a clear impact on other sectors – notably the financial sector from March 2023 onward – but did not lead to the broad economic slowdown that had generally been expected.

Economic growth globally proved much more resilient to shocks than expected. The most obvious jolt was the historic pace of rate hikes, compounded by supply disruptions caused by the Russia-Ukraine war, and the staggered restart of the global economy. The US economy was the clearest leader, with the labor market and consumption proving to be very resilient. Internationally, the picture was more mixed: European manufacturing surveys indicated contraction for the entire year, and the euro-zone Citigroup^® Economic Surprise Index (a broad aggregate for the pace of economic releases, versus expectations) dropped to the lowest level seen since 2020. China reopened its economy, but the rebound was slower than anticipated, with consumers in particular held back by ongoing housing-market weakness. Regardless, bond yields across developed markets were pushed higher, mainly by the resilience of US growth.

Inflation was a key theme globally. Central banks were in restrictive mode, willing to sacrifice growth – if necessary – to return to a more stable inflation path. The US was further along in crimping inflation than most other developed markets, but stubbornly high wage growth and low unemployment suggest further progress will be harder. Other regions such as the UK and Europe faced similar challenges but from an even more difficult starting point. China again was the exception, briefly entering deflation in the third quarter of 2023 due to very tepid consumer and offshore demand. It was not clear though that China’s low inflation could be exported, as goods inflation in much of the world had already returned to near-normal levels.

In recent months, technicals have played an increasing role, particularly in the US. Fitch downgraded the country’s credit rating to AA+ during the year amid an explosion in new Treasury supply to fund ongoing elevated deficits. Higher yields are a natural result, as investors are demanding a return of term premium to fund long-duration government obligations (duration measures a security’s sensitivity to changes in interest rates).

Credit markets were also highly volatile, reflecting many of the same concerns. The average credit spread on US investment grade corporates traded above 160 basis points in the fourth quarter of 2022 and briefly visited similar levels during the financial system stress that began in March 2023. In between, the investment grade Bloomberg US Corporate Bond Index traded through long-term averages. Credit markets continued to be caught in the tug-of-war between a possible recession, higher overall yields (that make credit yields historically attractive), and reduced supply.

Financial-industry turmoil was the key new development for credit markets, beginning with the sudden collapse of SVB in the US in March. That was followed a week later by a rescue deal in which UBS Group agreed to purchase rival Credit Suisse. The agreement

Portfolio management reviews

Delaware Ivy Total Return Bond Fund

included an 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 financials, with European banks and US regional banks performing poorly. The broader market impact mostly faded by month end, though financials remained relatively weak in the months that followed.

Source: Bloomberg, unless otherwise noted.

Within the Fund

For the fiscal year ended September 30, 2023, Delaware Ivy Total Return Bond Fund outperformed its benchmark, the Bloomberg Global Aggregate Bond Index, Hedged to USD. The Fund’s Class I shares gained 3.93%. The Fund’s Class A shares advanced 3.56% at net asset value and declined 1.10% at maximum offer price. These figures reflect all distributions reinvested. For the same period, the Bloomberg Global Aggregate Bond Index, Hedged to USD, advanced 2.10%. For complete, annualized performance of Delaware Ivy Total Return Bond Fund, please see the table on page 24.

A mix of factors drove the Fund’s outperformance. Curve positioning within interest rates was a key positive, as our increased weighting to shorter-dated bonds boosted performance, particularly in the final quarter of the fiscal year. Sector allocation and security selection were also key positives, with overweight positions in emerging markets debt and investment grade credit both contributing to returns. This reflected strong overall spread performance, despite the volatile backdrop.

These factors were somewhat offset by overall duration positioning: the Fund was overweight US dollar and Australian dollar duration, both of which underperformed the benchmark average. The Fund was also negatively affected by an overweight to financials issuers during the March volatility. An underweight position to US agency mortgage-backed securities (MBS) for much of the fiscal year contributed to performance, as this sector was one of the weakest risk-adjusted performers.

Fund positioning

We added duration to the Fund throughout the year, from a low of less than 5 years at the end of September 2022 to a peak of more than 5.75 years, before trimming back exposure to finish the year at just over 5.5 years. The mix of duration was also adjusted during the year, moving away from the US from April through July as yields fell and it became clear that rate hikes and the financial-sector distress were not causing a broad slowdown. We added allocations to euro- and Australian dollar-denominated duration, given their attractive hedged yields, more-attractive curve shapes, and clearly slower pace of growth.

We generally maintained the Fund’s investment grade credit exposure over the fiscal year, balancing gradually less-attractive spreads with strong technicals and historically high all-in yields. We trimmed higher beta (volatile) sectors as spreads rallied – mostly via emerging markets (EM). We view EM spreads as fair compared with developed market (DM) equivalents, but overall we found better entry levels in DM for rebuilding a more meaningful allocation to the sector. We also added materially to the Fund’s agency MBS allocation, from a zero weight to approximately 15% of market value, representing a small overweight to the sector. Agency MBS had suffered material spread widening as Treasury-market volatility remained elevated, and supply-demand technicals remained weak around the Federal Deposit Insurance Corporation (FDIC) sell-down process and the US Federal Reserve’s balance-sheet rolldown. We think current spreads (around the widest they’ve been since the global financial crisis) compensate for the risks.

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. We think the US dollar is likely to benefit both from safe-haven flows in a risk-off environment and from relatively higher yields in a scenario of stickier-than-expected inflation.

The Fund’s use of swaps, futures, foreign exchange currency positions, and options had a limited performance effect. Overall, hedging positions in credit derivatives added 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 Fund’s 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.

Performance summaries

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.

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 12. 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 (load) imposed on purchases (as a%ofoffering price) 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 within one year of purchase. 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.

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.

Performance summaries

Delaware Ivy Corporate Bond Fund

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 fulfil 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.

Performance of a $10,000 investment¹

For the period September 30, 2013 through September 30, 2023

		Starting value	Ending value
	Bloomberg US Corporate Bond Index	$10,000	$12,467
	Delaware Ivy Corporate Bond Fund - Class I shares	$10,000	$11,494
	Delaware Ivy Corporate Bond Fund - Class A shares	$ 9,425	$10,529

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on September 30, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) (the front-end sales charge in effect for Class A shares at the beginning of the period) 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 were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 12. Please note additional details on pages 11 through 13.

The graph also assumes $10,000 invested in the Bloomberg US Corporate Bond Index as of September 30, 2013. The Bloomberg US Corporate Bond Index, formerly known as the Bloomberg US Corporate Investment Grade Index, is composed of US dollar-denominated, investment grade corporate bonds that are US Securities and Exchange Commission (SEC)-registered or 144A with registration rights, and issued by industrial, utility, and financial companies. All bonds in the index have at least one year to maturity.

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.

Performance summaries

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.

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 15. 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 (load) imposed on purchases (as a%ofoffering price) 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 within one year of purchase. 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.

Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.

Fixed income securities and bond funds can lose value, and investors can lose principal as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

The Fund may also be subject to 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.

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.

Performance summaries

Delaware Ivy Government Securities Fund

Performance of a $10,000 investment¹

For the period September 30, 2013 through September 30, 2023

		Starting value	Ending value
	Bloomberg US Government/Mortgage-Backed Securities Index	$10,000	$10,670
	Delaware Ivy Government Securities Fund - Class I shares	$10,000	$ 9,906
	Delaware Ivy Government Securities Fund - Class A shares	$ 9,575	$ 9,233

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on September 30, 2013, and includes the effect of a 4.25% front-end sales charge (for Class A shares) (the front-end sales charge in effect for Class A shares at the beginning of the period) 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 were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 15. Please note additional details on pages 14 through 16.

The graph also assumes $10,000 invested in the Bloomberg US Government/Mortgage-Backed Securities Index as of October 1, 2013. The Bloomberg US Government/Mortgage-Backed Securities Index measures the performance of US government bonds and mortgage-related securities.

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.

Performance summaries

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.

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 18. 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 (as a%ofoffering price) changed from 5.75% to 4.50%.

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 12b-1 fee.

Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.

Fixed income securities and bond funds can lose value, and investors can lose principal as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.

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.

Performance summaries

Delaware Ivy High Yield Fund

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.

Performance of a $10,000 investment¹

For the period May 18, 2017 (Fund’s inception) through September 30, 2023

		Starting value	Ending value
	ICE BofA US High Yield Constrained Index	$10,000	$12,142
	Delaware Ivy High Yield Fund - Class I shares	$10,000	$11,938
	Delaware Ivy High Yield Fund - Class A shares	$ 9,425	$11,066

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on May 18, 2017, and includes the effect of a 5.75% front-end sales charge (for Class A shares) (the front-end sales charge in effect for Class A shares at the beginning of the period) 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 were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 18. Please note additional details on pages 17 through 19.

The graph also assumes $10,000 invested in the ICE BofA US High Yield Constrained Index as of May 18, 2017. 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.

Performance summaries

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.

*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.

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 21. 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 within one year of purchase. 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.

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 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.

Risk controls and asset allocation models do not promise any level of performance or guarantee against loss of principal.

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.

Investing in the real estate industry includes risks such as declines in real estate value, lack of availability of mortgage funds, overbuilding, extended vacancies, increases in property taxes, changes in zoning laws, costs from cleanup of environmental problems, uninsured damages, variations in rents, and changes 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.

Performance summaries

Delaware Ivy Multi-Asset Income Fund

Performance of a $10,000 investment¹

For the period October 1, 2015 (Fund’s inception) through September 30, 2023

		Starting value	Ending value
	MSCI ACWI (All Country World Index) Index (gross)	$10,000	$20,774
	MSCI ACWI (All Country World Index) Index (net)	$10,000	$19,859
	50% MSCI ACWI (All Country World Index) + 50% ICE BofA US High Yield Index	$10,000	$17,170
	ICE BofA US High Yield Index	$10,000	$14,569
	Delaware Ivy Multi-Asset Income Fund - Class I shares	$10,000	$13,849
	Delaware Ivy Multi-Asset Income Fund - Class A shares	$  9,425	$12,668

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, 2015, and includes the effect of a 5.75% front-end sales charge (for Class A shares) (the front-end sales charge in effect for Class A shares at the beginning of the period) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 21. Please note additional details on pages 20 through 23.

The graph also assumes $10,000 invested in 50% MSCI ACWI Index + 50% ICE BofA US High Yield Index, MSCI ACWI Index (Net), MSCI ACWI Index (Gross), and ICE BofA US High Yield Index as of October 1, 2015.

The ICE BofA US High Yield Index tracks the performance of US dollar-denominated below-investment-grade corporate debt publicly issued in the US domestic market. Qualifying securities must have a below-investment-grade rating (based on an average of Moody’s, S&P, and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule, and a minimum amount outstanding of $250 million.

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.

Performance summaries

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.

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 25. 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 (load) imposed on purchases (as a%ofoffering price) 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 within one year of purchase. 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.

Class R6 shares are available only to certain investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers, or other financial intermediaries. Class R6 shares pay no 12b-1 fee.

Fixed income securities and bond funds can lose value, and investors can lose principal as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions,

temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult 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 fulfil 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.

Performance summaries

Delaware Ivy Total Return Bond Fund

Performance of a $10,000 investment¹

For the period January 4, 2016 (Fund’s inception) through September 30, 2023

		Starting value	Ending value
	Bloomberg Global Aggregate 1-10 Year Index, Hedged to USD	$10,000	$11,074
	Bloomberg Global Aggregate Bond Index, Hedged to USD	$10,000	$11,002
	Delaware Ivy Total Return Bond Fund - Class I shares	$10,000	$10,260
	Delaware Ivy Total Return Bond Fund - Class A shares	$  9,425	$ 9,486

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class I and Class A shares of the Fund on January 4, 2016, and includes the effect of a 5.75% front-end sales charge (for Class A shares) (the front-end sales charge in effect for Class A shares at the beginning of the period) 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 25. Please note additional details on pages 24 through 27.

The graph also assumes $10,000 invested in the Bloomberg Global Aggregate Bond Index, Hedged to USD, and the Bloomberg Global Aggregate 1-10 Year Index, Hedged to USD, as of January 4, 2016.

The Bloomberg Global Aggregate Bond Index, Hedged to USD, provides a broad-based measure of the global investment grade fixed-rate debt markets. Index returns are hedged to the US dollar, taking rolling one-month forward contracts that are reset at the end of each month and hedging each non-US-dollar-denominated bond in the index into US dollar terms.

The Bloomberg Global Aggregate 1-10 Year Index, Hedged to USD, provides a broad-based measure of the global investment grade fixed-rate debt market with a maturity greater of than 1 year and less than 10 years.

The Citigroup Economic Surprise Index (euro zone), mentioned on page 9, is a 3-month rolling measure of actual economic surprises relative to market expectations. A positive reading means that data have been stronger than expected, while a negative reading means that economic data have been weaker than expected.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

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

Disclosure of Fund expenses

For the six-month period from April 1, 2023 to September 30, 2023 (Unaudited)

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from April 1, 2023 to September 30, 2023.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

Delaware Ivy Government Securities Fund
Expense analysis of an investment of $1,000

Delaware Ivy High Yield Fund
Expense analysis of an investment of $1,000

Delaware Ivy Multi-Asset Income Fund
Expense analysis of an investment of $1,000

Delaware Ivy Total Return Bond Fund
Expense analysis of an investment of $1,000

*“Expenses Paid During Period” are equal to the relevant Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

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

In addition to the Funds' expenses reflected above and on the previous pages, each Fund also indirectly bears its portion of the fees and expenses of any investment companies (Underlying Funds), including exchange-traded funds, in which it invests. The tables above and on the previous pages do not reflect the expenses of any Underlying Funds.

Security type / sector allocations

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

Security type / sector allocations

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

Security type / sector allocations

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

Security type / sector allocations and top 10 equity holdings

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

Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.

Security type / sector allocations

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

Schedules of investments

Schedules of investments

Delaware Ivy Corporate Bond Fund