Delaware Diversified Income Fund - Overview

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Fund profile
Objective		Portfolio manager(s)
Delaware Diversified Income Fund seeks maximum long-term total return, consistent with reasonable risk.		Kevin P. Loome (2007) Paul Grillo (2001) Roger A. Early (2007) Thomas H. Chow (2007) Wen-Dar Chen (2007) Delaware Management Company
Main investment strategies
The Fund allocates its investments principally among the following four sectors of the fixed income securities markets: the U.S. Investment Grade Sector, the U.S. High-Yield Sector, the International Developed Markets Sector, and the Emerging Markets Sector. Under normal circumstances, the Fund will invest at least 80% of its net assets in fixed income securities (the 80% policy). We will determine how much of the Fund to allocate to each of the four sectors, based on our evaluation of economic and market conditions and our assessment of the returns and potential for appreciation that can be achieved from investments in each of the four sectors. We will periodically reallocate the Fund's assets, as deemed necessary. In unusual market conditions, in order to meet redemption requests, for temporary defensive purposes, and pending investment, the Fund may hold a substantial portion of its assets in cash or short-term fixed income obligations. The Fund may also use a wide range of hedging instruments, including options, futures contracts, and options on futures contracts subject to certain limitations. The Fund's investments in emerging markets will, in the aggregate, be limited to no more than 15% of the Fund's total assets. The Manager will limit non-U.S. dollar denominated securities to no more than 50% of net assets, but total non-U.S. dollar currency exposure will be limited, in aggregate, to no more than 25% of net assets. The Fund's 80% policy described above may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change.
Fund information (As of 10/31/09)
Fixed Income style		Total net assets $5.5 billion       Class A $3.7 billion       Class B $50.6 million       Class C $1.4 billion       Class I $323.1 million       Class R $137.2 million Inception date         Class A 12/29/97       Class B 10/28/02       Class C 10/28/02       Class I 10/28/02       Class R 06/02/03 Dividends Mid Month Capital gains December

Effective at the close of business on May 31, 2007, no new or subsequent investments will be allowed in Class B shares of the Delaware Investments® Family of Funds except through a reinvestment of dividends or capital gains or permitted exchanges. http://www.delawareinvestments.com/Corporate/shareholder/supp_bclass.pdf

The Fund will also be affected by prepayment risk due to its holdings of mortgage-backed securities. With prepayment risk, when homeowners prepay mortgages during periods of low interest rates, the Fund may be forced to re-deploy its assets in lower yielding securities.

If, and to the extent that, we invest in forward foreign currency contracts or use other investments to hedge against currency risks, the Fund will be subject to the special risks associated with those activities

A rise/fall in the interest rates can have a significant impact on bond prices and the NAV (net asset value) of the fund. Funds that invest in bonds can lose their value as interest rates rise and an investor can lose principal.

The Delaware information provided herein may be used in conjunction with the offering of shares only if preceded or accompanied by a prospectus. All Delaware Funds are offered by prospectus only. The prospectus contains more complete information on advisory fees, distribution charges, and other expenses and should be read carefully before investing or sending money. A printed copy of any Delaware Investments fund prospectus may be obtained by calling Delaware Investments at 800 523-1918.

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