delenhancedglobal_ncsr.htm
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
 
Investment Company Act file number: 811-22050
 
Exact name of registrant as specified in charter:
Delaware Enhanced Global Dividend and Income Fund
 
Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103
 
Name and address of agent for service:
David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
 
Registrant’s telephone number, including area code: (800) 523-1918
 
Date of fiscal year end: November 30
 
Date of reporting period: November 30, 2009
 


Item 1. Reports to Stockholders
 
 
 
 
Annual Report Delaware
Enhanced Global
Dividend and Income
Fund
 
  November 30, 2009 
   
 
 
 
 
 
 
 
 
 
The figures in the annual report for Delaware Enhanced Global Dividend and Income Fund represent past results, which are not a guarantee of future results. A rise or fall in interest rates can have a significant impact on bond prices. Funds that invest in bonds can lose their value as interest rates rise.
 
 
 
 
  Closed-end fund
 
 
 


Table of contents
 
 
 
       > Portfolio management review 1
 
> Performance summary 4
 
> Security type and country allocations 6
 
> Statement of net assets 8
 
> Statement of operations 24
   
> Statements of changes in net assets 25
 
> Statement of cash flows 26
   
> Financial highlights 27
 
> Notes to financial statements 28
 
> Report of independent registered public accounting firm 35
 
> Other Fund information 36
 
> Board of trustees/directors and officers addendum 44
 
> About the organization 47






On January 4, 2010, Delaware Management Holdings, Inc., and its subsidiaries (collectively known by the marketing name of Delaware Investments) were sold by a subsidiary of Lincoln National Corporation to Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. Please see recent press releases for more complete information.
 
Investments in Delaware Enhanced Global Dividend and Income Fund are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including subsidiaries or related companies, and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Fund, the repayment of capital from the Fund, or any particular rate of return.
 
 
Views expressed herein are current as of Dec. 8, 2009 and are subject to change.
 
Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
 
Mutual fund advisory services are provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
 
© 2010 Delaware Management Holdings, Inc.
 
All third-party trademarks cited are the property of their respective owners.
 


Portfolio management review
 
Delaware Enhanced Global Dividend and Income Fund
 
Dec. 8, 2009
 
Performance preview (for the period ended Nov. 30, 2009)          
Delaware Enhanced Global Dividend and Income Fund @ market price   1-year return +134.96%
Delaware Enhanced Global Dividend and Income Fund @ NAV 1-year return +59.12%
Lipper Closed-end Global Funds Average @ market price 1-year return +66.52%
Lipper Closed-end Global Funds Average @ NAV 1-year return +34.75%
Past performance does not guarantee future results.
 
For complete, annualized performance for Delaware Investments Global Dividend and Income Fund, please see the table on page 4.
 
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Enhanced Global Dividend and Income Fund returned +59.12% at net asset value and 134.96% at market price (both figures reflect all distributions reinvested) for the fiscal year ended Nov. 30, 2009. Complete annualized performance information for Delaware Enhanced Global Dividend and Income Fund is shown in the table on page 4.
 
Prices of risky assets fell steeply before recovery
 
The fiscal year was largely a story in two parts. The period began amid the worst economic and financial markets that the portfolio management team has ever witnessed. The latter part of the period, however, featured a considerable recovery, with what the team viewed as extraordinarily attractive opportunities within both the fixed income and equity markets.
 
At the start of the fiscal period, financial markets were still reacting to the jolt received when storied Wall Street investment bank Lehman Brothers declared bankruptcy in September 2008. The bankruptcy, followed soon after by the federal bailout of insurance giant American International Group (AIG), sent the financial markets into a near panic. Risk aversion had become extreme by late 2008 and many investors seemingly fled all “risk” assets for the relative safety of securities issued by the U.S. government and other sovereign entities. Signs of the fallout from the financial crisis were abundant, both in the economy and in the securities markets.
 
The MSCI ACWI (All Country World Index), a broad measure of equity markets around the world, had declined by March 2009 to very near its lowest level since July 1995. The S&P 500 Index, a measure of the broad stock market in the United States, dropped by March to its lowest level since September 1996. Meanwhile, high yield bond spreads (which are used to measure a bond’s perceived level of risk) in the U.S. peaked in December 2008 at 21.0% as measured by J.P. Morgan, a level not seen since January 1995. (Source: Bloomberg.)
 
The prices of energy and commodities also fell sharply during the first half of the year, before starting to recover during the latter half. In early March 2009, the broad-based Thomson Reuters/Jefferies CRB Commodity Index dropped to its lowest level since January 2002 (source: Bloomberg). The price of crude oil also sank, with the West Texas Intermediate (a type of crude oil used as a benchmark in oil pricing) hitting a low of $31 a barrel in late December 2008, a full 78% below its all-time peak price of $145 in early July 2008 (source: Bloomberg).
 
Global equity and fixed income markets touched lows in March, and then began to recover vigorously for much of the rest of the period. Governments and central banks around the world stressed their intentions of continuing to provide support for economic recovery for as long as necessary, which helped investors become more willing to accept risk. At first, many investors began to reach for risk at the expense of quality, within both the equity and fixed income markets. Lower-rated bonds, for example, significantly outperformed their higher-rated peers during the spring and summer months, while stocks of many companies with questionable fundamentals outpaced those of fundamentally solid companies. As the market recovery matured, however, it broadened to include almost every corner of the market, including higher-quality securities.
 
The views expressed are current as of the date of this report and are subject to change.
 
(continues)     1
 


Portfolio management review
 
Delaware Enhanced Global Dividend and Income Fund
 
Importantly, economies around the world began to show early signs of stabilization and cyclical recovery. During the third calendar quarter of 2009, in fact, the U.S. economy expanded by an estimated 2.8%, according to the U.S. Commerce Department’s reading of GDP released in November. It was the fastest growth in the past two years.
 
Fund positioning
 
The Fund’s primary objective is to seek current income, with a secondary objective of capital appreciation. In managing the Fund, we pursue these goals by investing broadly in a range of income-generating securities from around the globe. These include “core” fixed income holdings (such as Treasury and agency securities) as well as investment grade and high yield corporate bonds, convertible bonds, real estate investment trusts (REITs), large-cap value stocks, and international value stocks.
 
Broadly speaking, we positioned the Fund defensively as the period began. When determining the Fund’s asset allocation at a portfolio level, for instance, we placed an emphasis on fixed income securities and convertible bonds over equities and REITs. From a risk-reward perspective, we tended to find fixed income asset classes as more appropriate for the Fund.
 
Among corporate bonds, for example, yields rose to historically high levels during the opening months of the period. Because prices decline as yields rise, the high yields on corporate bonds reflected the extreme risk aversion by investors at that time, and also highlighted some extraordinary value opportunities in our opinion. Although corporate bonds were impacted by the difficult investment climate early in the period, both high yield and investment grade corporate bond positions within the Fund ultimately contributed performance for the fiscal year. Both asset classes performed well during the market’s recovery, and high yield bonds’ rebound was particularly notable.
 
Within high yield, the Fund generally carried a heavy position in speculative B-rated securities because we believed that the most favorable risk and reward opportunities existed there. Conversely, we maintained less exposure to bonds with a higher BB rating, which is just below investment grade. Our limited exposure to BB-rated bonds moderated Fund returns, however, because these bonds were among the better-performing bonds within the high yield asset class. (Credit ratings based on Standard & Poor’s opinion.)
 
The Fund’s increased exposure to convertible bonds also added to its overall performance. We added to convertible bond exposure because we believed the combination of yield, capital structure positioning, and potential upside made them attractive.
 
Among our REIT holdings, we continued to employ our “bottom up” security selection strategy, in which we evaluate potential investments one by one, based on our assessment of each company’s growth prospects, relative valuation, and balance-sheet quality (among other factors). Given the highly volatile conditions of the fiscal year, however, our approach was more opportunistic than usual, as we sought to take advantage of a shifting marketplace.
 
Early on, as the investment environment deteriorated, we made our REIT positioning more defensive by focusing on companies with longer lease terms, including healthcare and “triple net” REITs. Triple-net leases, in which tenants pay all property maintenance costs in addition to rent, tend to be relatively defensive because they provide a greater income stream to landlords. Simultaneously, we limited our exposure to companies with shorter-duration leases, such as hotel companies, which tend to have uncertain cash flows relative to other sectors. We also looked to avoid stocks of companies with what we believed were significant balance-sheet problems.
 
This defensive stance was generally beneficial to Fund performance during the downturn. Nonetheless, we calculated that the recovery would be much shorter than it turned out to be when credit markets loosened and the REIT market advanced. In actuality, credit conditions continued to improve, and by summer it was evident that a longer-lived improvement was taking place. Our maintenance of cautious positioning for a time caused the Fund’s REIT positions to trail the broader market gains during some of the REIT rally.
 
2
 


The gains made during the fiscal year by the Fund’s large-cap value equity holdings were more subdued than those of its high yield fixed income or REIT holdings. Much of the performance gains (versus the broader equity markets) from this equity allocation relative to the S&P 500 Index came in periods of market decline, such as the first several months of the period and again in October 2009.
 
This trend has been consistent with the aim of our equity management approach; through our value-oriented, defensive style, we seek to do well in relative terms in down markets by minimizing losses. The biggest positive for the Fund’s large-cap value holdings came from de-emphasizing the financial sector, the hardest-hit group in the marketplace during the downturn. Fund returns were negatively affected by our holdings in both the materials and industrials sectors, two groups in which our security selection proved disappointing.
 
In international equities, we maintained a defensive posture through the first half of 2009. This included dramatically cutting the Fund’s allocation to financial stocks that were highly sensitive economically. It also meant avoiding industrial and consumer-related companies with significant debt levels, which we believed would suffer if capital became less readily available. Beginning in the third quarter of 2009, as evidence mounted that the market’s progress was sustainable and that the economy was slowly improving, we felt more comfortable adding to our risk exposure in this portion of the Fund.
 
As the period came to a close, we were encouraged as it appeared to us that international equity investors once again were generally favoring stocks with solid business fundamentals, sustainable earnings, and reasonable valuations. We believe this constitutes a more normalized investment environment than the speculative atmosphere of the second quarter. By the end of November 2009, the market appeared to be assessing stocks on a company-by-company basis, and because of our regular emphasis on careful individual stock research, we felt this was a favorable backdrop for our style of investing.
 
We recognize that the recent environment, one in which investors could be rewarded for simply increasing the amount of risk within their portfolios, cannot last forever. With this in mind, the Fund continued at the portfolio level to be positioned generally defensively at fiscal year end, based on our opinion of relative value opportunities among asset classes.
 
3
 


Performance summary
 
Delaware Enhanced Global Dividend and Income Fund
 
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Funds that invest in bonds can lose their value as interest rates rise, and an investor can lose principal. Please obtain the performance data for the most recent month end by calling 800 523-1918.
 
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.
 
Fund performance
Average annual total returns  
Through Nov. 30, 2009               1 year               Lifetime
At market price (inception date June 29, 2007)   +134.96%   -4.65%
At net asset value (NAV) (inception date June 29, 2007)   +59.12% -5.39%

Instances of high double-digit returns are unusual, cannot be sustained, and were achieved primarily during favorable market conditions.
 
Diversification may not protect against market risk.
 
Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors. REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.
 
International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.
 
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. The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate. High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.
 
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 derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
 
If and when the Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.
 
The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
 
Returns reflect the reinvestment of all distributions. Dividends and distributions, if any, are assumed, for the purpose of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment policy. Shares of the Fund were initially offered with a sales charge of 4.50%. Performance since inception does not include the sales charge or any other brokerage commission for purchases made since inception. Past performance is not a guarantee of future results.
 
Fund basics
As of Nov. 30, 2009
 
Fund objective
The Fund seeks to achieve current income. Capital appreciation is a secondary objective.
 
Total Fund net assets
$156 million
 
Number of holdings
741
 
Fund start date
June 29, 2007
 
NYSE symbol
DEX

4
 


Market price versus net asset value (see notes below)
Nov. 30, 2008, through Nov. 30, 2009
 
 
 
Starting value       Ending value
      (Nov. 30, 2008)   (Nov. 30, 2009)

    Delaware Enhanced Global Dividend and Income Fund @ Market Price $6.08   $12.29

Delaware Enhanced Global Dividend and Income Fund @ NAV $8.77   $12.06

Past performance is not a guarantee of future results.
 
Performance of a $10,000 Investment
Average annual total returns from June 29, 2007, through Nov. 30, 2009
 
 
 
     Starting value       Ending value
      (June 29, 2007)   (Nov. 30, 2009)

Delaware Enhanced Global Dividend and Income Fund @ Market Price $10,000   $8,910

  Delaware Enhanced Global Dividend and Income Fund @ NAV $10,000   $8,744


  Lipper Closed-end Global Funds Average @ Market Price $10,000   $8,373


Lipper Closed-end Global Funds Average @ NAV $10,000   $8,249

The chart assumes $10,000 invested in the Fund on June 29, 2007, and includes the reinvestment of all distributions at market value. The chart assumes $10,000 in the Lipper Closed-end Global Funds Average at market price and at NAV. Performance of the Fund and the Lipper class at market value is based on market performance during the period. Performance of the Fund and Lipper class at NAV is based on the fluctuations in NAV during the period. Delaware Enhanced Global Dividend and Income Fund was initially offered with a sales charge of 4.50%. Performance shown in both charts above does not include fees, the initial sales charge, or any brokerage commissions for purchases. Investments in the Fund are not available at NAV.
 
The Lipper Closed-end Global Funds Average represents the average return of closed-end global mutual funds tracked by Lipper (source: Lipper).
 
Market price is the price an investor would pay for shares of the Fund on the secondary market. NAV is the total value of one fund share, generally equal to a fund’s net assets divided by the number of shares outstanding.
 
Past performance is not a guarantee of future results.
 
5
 


Security type and country allocations
 
Delaware Enhanced Global Dividend and Income Fund
As of November 30, 2009
 
Sector designations may be different than 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 than another fund’s sector designations.
 
Percentage
Security Type of Net Assets
Common Stock 44.25 %
Consumer Discretionary 6.84 %
Consumer Staples 3.68 %
Diversified REITs 1.14 %
Energy 4.84 %
Financials 5.27 %
Health Care 4.66 %
Health Care REITs 0.06 %
Industrial REITs 0.30 %
Industrials 4.96 %
Information Technology 2.98 %
Malls REITs 0.38 %
Manufactured Housing REITs 0.07 %
Materials 2.68 %
Mortgage REITs 0.13 %
Multifamily REITs 0.10 %
Office REITs 0.58 %
Real Estate Management & Development 0.36 %
Shopping Center REITs 0.57 %
Telecommunications 2.16 %
Utilities 2.49 %
Convertible Preferred Stock 2.03 %
Agency Collateralized Mortgage Obligations 0.38 %
Agency Mortgage-Backed Securities 3.01 %
Commercial Mortgage-Backed Securities 2.52 %
Convertible Bonds 10.66 %
Aerospace & Defense 0.32 %
Automobiles 0.18 %
Banking, Finance & Insurance 0.37 %
Basic Materials 1.22 %
Building & Materials 0.10 %
Computers & Technology 1.29 %
Electronics & Electrical Equipment 0.09 %
Energy 0.50 %
Health Care & Pharmaceuticals 1.58 %
Leisure, Lodging & Entertainment 0.82 %
Real Estate 1.27 %
Telecommunications 2.44 %
Transportation 0.48 %
Corporate Bonds 36.28 %
Banking 2.88 %
Basic Industry 4.71 %
Brokerage 1.63 %
Capital Goods 2.16 %
Consumer Cyclical 3.13 %
Consumer Non-Cyclical 1.47 %
Energy 5.05 %
Finance & Investments 1.21 %
Media 2.34 %
Real Estate 0.17 %
Services Cyclical 2.02 %
Services Non-Cyclical 1.91 %
Technology 0.70 %
Telecommunications 5.21 %
Utilities 1.69 %
Foreign Agencies 1.54 %
Municipal Bonds 0.12 %
Non-Agency Asset-Backed Securities 0.61 %
Non-Agency Collateralized Mortgage Obligations 0.60 %
Regional Authority 0.06 %
Senior Secured Loans 0.28 %
Sovereign Debt 6.44 %
Supranational Banks 4.07 %
U.S. Treasury Obligations 2.58 %
Leveraged Non-Recourse Security 0.00 %
Exchange Traded Fund 0.01 %
Limited Partnership 0.04 %
Preferred Stock 0.36 %
Residual Interest Trust Certificate 0.00 %
Discount Note 6.60 %
Securities Lending Collateral 10.17 %
Total Value of Securities 132.61 %
Obligation to Return Securities Lending Collateral (10.41 %)
Borrowing Under Line of Credit (25.63 %)
Receivables and Other Assets Net of Liabilities 3.43 %
Total Net Assets 100.00 %

6
 


Percentage
Country of Net Assets
Australia 1.43 %
Austria 0.19 %
Barbados 1.17 %
Belgium 0.01 %
Bermuda 1.48 %
Brazil 1.76 %
British Virgin Islands 0.26 %
Canada 3.30 %
Cayman Islands 0.85 %
Colombia 0.34 %
Denmark 0.38 %
Finland 0.35 %
France 4.02 %
Germany 2.38 %
Hong Kong 1.56 %
Ireland 0.90 %
Italy 1.22 %
Japan 2.26 %
Liberia 0.08 %
Luxembourg 5.17 %
Marshall Island 0.05 %
Mexico 2.74 %
Netherlands 2.11 %
Norway 0.08 %
Pakistan 1.13 %
Republic of Korea 0.45 %
Singapore 0.71 %
Supranational 4.07 %
South Africa 0.40 %
Spain 0.45 %
Sweden 0.87 %
Switzerland 0.87 %
Taiwan 0.34 %
United Kingdom 2.88 %
United States 69.58 %
Total 115.84 %

The percentage of net assets exceeds 100% because the Fund utilizes a line of credit with the Bank of New York Mellon, as described in note 7 in “Notes to financial statements.” The Fund utilizes leveraging techniques in an attempt to obtain a higher return for the Fund. There is no assurance that the Fund will achieve its investment objectives through the use of such techniques.
 
7
 


Statement of net assets
 
Delaware Enhanced Global Dividend and Income Fund
 
November 30, 2009
 
Number of Value
                Shares       (U.S. $)
Common Stock – 44.25%v
Consumer Discretionary – 6.84%
Autoliv 18,300 $ 743,163
* Bayerische Motoren Werke 14,865 703,426
*† DIRECTV Group 1,900 60,097
Disney (Walt) 18,000 543,960
* Don Quijote 22,400 566,154
Esprit Holdings 93,631 629,454
Gap 22,900 490,518
Home Depot 19,200 525,312
* KB HOME 17,000 230,350
Lowe’s 23,900 521,259
Mattel 28,000 544,880
McGraw-Hill Companies 19,500 584,220
* PPR 5,123 619,907
* Publicis Groupe 13,943 536,713
* Round One 40,482 238,818
Target 10,600 493,536
Techtronic Industries 664,500 532,468
Toyota Motor 12,984 516,657
Vivendi 27,259 785,330
WPP Group 37,084 346,814
Yue Yuen Industrial Holdings 162,000 456,744
10,669,780
Consumer Staples – 3.68%
Archer-Daniels-Midland 17,700 545,337
Coca-Cola Amatil 71,354 692,554
CVS Caremark 13,800 427,938
@ Greggs 65,996 471,180
Heinz (H.J.) 12,600 534,870
Kimberly-Clark 8,700 573,939
Kraft Foods Class A 19,200 510,336
Metro 10,765 676,359
Parmalat 245,978 715,677
Safeway 26,300 591,750
5,739,940
Diversified REITs – 1.14%
British Land 27,905 204,507
Corio 2,648 180,485
* Digital Realty Trust 4,400 214,104
Duke Realty 8,600 96,406
Entertainment
          Properties Trust 8,236 260,175
Goodman Group 247,237 135,830
Lexington Reality Trust 28,070 136,420
Stockland 64,000 236,750
* Unibail-Rodamco 1,399 315,048
1,779,725
Energy – 4.84%
Anadarko Petroleum 8,100 482,193
BP 52,030 491,983
Chevron 7,100 554,084
CNOOC 442,000 680,978
ConocoPhillips 11,000 569,470
Devon Energy 7,200 484,920
Exxon Mobil 7,300 548,011
Marathon Oil 15,400 502,348
National Oilwell Varco 10,600 456,012
Occidental Petroleum 6,600 533,214
Petroleo Brasiliero ADR 16,500 743,490
* Total 7,689 475,707
Transocean 5,700 486,723
Williams Companies 27,400 544,986
7,554,119
Financials – 5.27%
Allstate 17,000 482,970
* AXA 23,140 551,325
Banco Santander 41,366 708,593
Bank of New York Mellon 17,500 466,200
BB&T 17,800 443,220
Comerica 17,400 495,378
Global Brands Acquisition 9,396 92,175
JPMorgan Chase & Co 11,200 475,888
Marsh & McLennan 21,100 475,805
Mitsubishi UFJ
          Financial Group 125,989 702,449
* Nordea Bank 59,678 618,846
Standard Chartered 25,672 626,719
State Street 10,000 413,000
SunTrust Banks 21,500 508,045
Travelers Companies 10,900 571,051
UniCredit 171,662 586,304
8,217,968
Health Care – 4.66%
Abbott Laboratories 10,900 593,942
Alliance HealthCare Services 4,875 28,860
Astellas Pharma 15,400 568,259
AstraZeneca 5,984 267,510
Bristol-Myers Squibb 22,700 574,537
Cardinal Health 18,200 586,586
Johnson & Johnson 8,300 521,572
Merck 26,743 968,362
Novartis 13,038 723,541
Novo Nordisk Class B 7,161 480,357
Pace 198,606 561,299
Pfizer 28,744 522,278
Quest Diagnostics 9,500 550,430
Sanofi-Aventis 4,315 325,978
7,273,511
Health Care REITs – 0.06%
Nationwide Health
          Properties 2,800 95,228
95,228
Industrial REITs – 0.30%
Cambridge Industrial Trust 1,170,000 350,831
* ING Industrial Fund 307,371 119,614
470,445

8
 


Number of Value
                Shares       (U.S. $)
Common Stock (continued)
Industrials – 4.96%
* Asahi Glass 67,000 $ 585,136
* Compagnie de Saint-Gobain 14,096 766,605
Deutsche Post 36,062 675,124
Finmeccanica 36,740 608,390
Flextronics International 6,400 45,248
General Electric 29,700 475,794
Honeywell International 12,900 496,263
* Koninklijke Philips Electronics 28,746 786,094
*† Mobile Mini 2,394 36,413
Northrop Grumman 9,800 537,040
Pitney Bowes 20,100 463,104
Singapore Airlines 59,000 566,980
Teleperformance 21,700 719,978
Vallourec 2,563 428,648
* Waste Management 16,900 554,996
7,745,813
Information Technology – 2.98%
CGI Group Class A 106,161 1,312,490
EMC 52,500 883,575
Intel 25,400 487,680
International Business
          Machines 4,200 530,670
Motorola 59,400 475,794
* Nokia 41,800 550,356
Xerox 54,200 417,340
4,657,905
Malls REITs – 0.38%
* Simon Property Group 8,214 596,829
596,829
Manufactured Housing REITs – 0.07%
Equity Lifestyle Properties 2,300 110,423
110,423
Materials – 2.68%
Agrium 12,300 687,078
ArcelorMittal 8,548 333,019
Dow Chemical 19,200 533,376
duPont (E.I.) deNemours 15,400 532,532
Lafarge 7,366 605,236
Linde 5,939 728,901
Nucor 10,300 436,823
* Vale ADR 11,400 326,838
4,183,803
Mortgage REITs – 0.13%
Annaly Capital
          Management 2,600 47,866
Chimera Investment 12,100 48,763
Cypress Sharpridge
          Investments 8,200 107,420
204,049
Multifamily REITs – 0.10%
Camden Property Trust 3,900 151,125
151,125
Office REITs – 0.58%
Government Properties
          Income Trust 3,852 96,184
ING UK Real Estate Trust 317,470 263,738
Mack-Cali Realty 8,300 254,727
Orix REIT 17 75,119
Parkway Properties 3,500 65,345
SL Green Realty 3,300 146,586
901,699
Real Estate Management & Development – 0.36%
Mitsubishi Estate 10,549 164,123
Shimao Property Holdings 25,500 48,434
Starwood Property Trust 17,700 343,380
555,937
Shopping Center REITs – 0.57%
Kimco Realty 16,900 208,208
Link REIT 33,000 83,119
Macquarie
          CountryWide Trust 355,587 185,588
Ramco-Gershenson
          Properties Trust 10,006 91,055
* Regency Centers 3,900 130,533
Westfield Group 16,989 189,938
888,441
Telecommunications – 2.16%
AT&T 18,600 501,084
Chunghwa Telecom ADR 29,802 530,178
Frontier Communications 25,700 203,030
GeoEye 500 15,585
Telstra 99,588 310,950
TELUS 20,411 661,319
Verizon Communications 16,900 531,674
Vodafone Group 272,101 613,687
3,367,507
Utilities – 2.49%
American Electric Power 16,100 518,259
Duke Energy 32,600 543,768
Edison International 14,800 503,940
National Grid 61,607 669,394
NorthWestern 3,800 98,002
Progress Energy 13,100 512,079
Public Service
          Enterprise Group 16,200 508,032
Sempra Energy 10,100 536,714
3,890,188
Total Common Stock (cost $78,392,485) 69,054,435

(continues)     9
 


Statement of net assets
 
Delaware Enhanced Global Dividend and Income Fund
 
Number of Value
          Shares       (U.S. $)
Convertible Preferred Stock – 2.03%        
Banking, Finance & Insurance – 0.02%
@ Fannie Mae 8.75%
          exercise price $32.45,
          expiration date 5/13/11 20,000 $ 28,000
28,000
Energy – 0.15%
  Whiting Petroleum 6.25%
          exercise price $43.42,
          expiration date 12/31/49 1,500 241,440
241,440
Health Care & Pharmaceuticals – 0.72%
  Mylan 6.50%
          exercise price $17.08,
          expiration date 11/15/10 1,000 1,116,500
1,116,500
Telecommunications – 1.14%
Crown Castle
          International 6.50%
          exercise price $36.88,
          expiration date 8/15/12 18,000 1,039,500
Lucent Technologies
          Capital Trust I 7.75%
          exercise price $24.80,
          expiration date 3/15/17 1,000 740,250
1,779,750
Total Convertible Preferred Stock
(cost $3,976,492) 3,165,690
 
Principal
Amount°
Agency Collateralized Mortgage Obligations – 0.38%
Fannie Mae Series
          Series 2001-50 BA
          7.00% 10/25/41 USD 177,828 196,167
          Series 2003-122
          4.50% 2/25/28 107,977 111,558
Freddie Mac
          Series 2557 WE
          5.00% 1/15/18 60,000 64,678
          Series 3094 US
          6.75% 9/15/34 79,662 77,856
          Series 3131 MC
          5.50% 4/15/33 40,000 43,223
          Series 3173 PE
          6.00% 4/15/35 65,000 71,236
          Series 3337 PB
          5.50% 7/15/30 25,000 26,346
Total Agency Collateralized
Mortgage Obligations
(cost $550,643) 591,064
 
Agency Mortgage-Backed Securities – 3.01%
· Fannie Mae ARM
          5.138% 11/1/35   30,956   32,504
          5.164% 3/1/38 69,618 73,335
          5.372% 4/1/36 37,213 39,015
          6.019% 10/1/36 44,163 46,785
          6.086% 10/1/36 29,044 30,813
          6.306% 4/1/36 159,979 169,663
Fannie Mae S.F. 15 yr
          5.50% 1/1/23 73,064 78,339
Fannie Mae S.F. 30 yr
          5.00% 12/1/36 228,779 240,419
          5.00% 12/1/37 30,384 31,914
          5.00% 2/1/38 22,845 23,995
          6.50% 6/1/36 54,859 59,392
          6.50% 10/1/36 40,568 43,921
          6.50% 3/1/37 37,979 41,117
          6.50% 7/1/37 904,993 978,789
          6.50% 8/1/37 56,079 60,652
          6.50% 11/1/37 39,069 42,255
          6.50% 12/1/37 55,648 60,185
Freddie Mac
          6.00% 1/1/17 86,548 90,918
· Freddie Mac ARM
          5.682% 7/1/36 25,897 27,339
          5.816% 10/1/36 68,906 72,907
Freddie Mac S.F. 15 yr
          5.00% 6/1/18 25,148 27,014
          5.00% 12/1/22 155,401 165,796
Freddie Mac S.F. 30 yr
          5.00% 1/1/34 1,121,764 1,180,766
          7.00% 11/1/33 66,580 74,527
          9.00% 9/1/30 81,816 95,119
Freddie Mac S.F. 30 yr TBA
          4.00% 12/1/39 70,000 70,186
          5.00% 12/1/39 50,000 52,414
GNMA I S.F. 30 yr
          7.50% 12/15/23 126,370 143,306
          7.50% 1/15/32 95,960 109,899
          9.50% 9/15/17 81,642 92,310
          12.00% 5/15/15 62,074 70,805
GNMA II S.F. 30 yr
          6.00% 11/20/28 112,278 121,642
          6.50% 2/20/30 225,294 246,386
Total Agency Mortgage-Backed
  Securities (cost $4,371,314) 4,694,427
 
Commercial Mortgage-Backed Securities – 2.52%
# American Tower Trust 144A
          Series 2007-1A AFX
          5.42% 4/15/37 75,000 75,750
          Series 2007-1A D
          5.957% 4/15/37 25,000 25,000

10
 


Principal Value
          Amount°       (U.S. $)
Commercial Mortgage-Backed Securities (continued)
Bank of America      
          Commercial Mortgage
          Securities
          ·Series 2004-3 A5  
          5.578% 6/10/39 USD 50,000 $ 51,761
          Series 2004-5 A3
          4.561% 11/10/41 475,000 480,759
          Series 2005-1 A3
          4.877% 11/10/42 91,158 91,183
          ·Series 2005-6 A4
          5.351% 9/10/47 180,000 182,537
          ·Series 2005-6 AM
          5.351% 9/10/47 25,000 21,966
          ·Series 2007-3 A4
          5.837% 6/10/49 30,000 24,892
          ·Series 2007-4 AM
          6.002% 2/10/51 40,000 28,878
Bear Stearns Commercial
          Mortgage Securities
          ·Series 2005-PW10 A4
          5.405% 12/11/40 100,000 100,439
          ·Series 2005-T20 A4A
          5.298% 10/12/42 230,000 232,671
          ·Series 2006-PW12 A4
          5.903% 9/11/38 25,000 25,126
          Series 2006-PW14 A4
          5.201% 12/11/38 60,000 56,973
          Series 2007-PW15 A4
          5.331% 2/11/44 75,000 64,254
          ·Series 2007-T28 A4
          5.742% 9/11/42 65,000 63,729
w· Commercial Mortgage
          Pass Through
          Certificates Series
          2005-C6 A5A
          5.116% 6/10/44 95,000 94,593
Goldman Sachs Mortgage
          Securities II
          ·Series 2004-GG2 A6
          5.396% 8/10/38 60,000 60,348
          Series 2005-GG4 A4A
          4.751% 7/10/39 420,000 405,368
          ·Series 2006-GG6 A4
          5.553% 4/10/38 60,000 54,124
          ·Series 2007-GG10 A4
          5.999% 8/10/45 70,000 57,622
· Greenwich Capital
          Commercial Funding
          Series 2004-GG1 A7
          5.317% 6/10/36 25,000 25,779
· JPMorgan Chase
          Commercial Mortgage
          Securities
          Series 2005-LDP3 A4A
          4.936% 8/15/42 35,000 33,888
          Series 2005-LDP5 A4
          5.344% 12/15/44 150,000 151,695
· LB-UBS Commercial
          Mortgage Trust Series
          2004-C4 A4 2004-C4
          A4 5.398% 6/15/29 475,000   476,986
· Merrill Lynch/Countrywide
          Commercial Mortgage
          Trust Series 2007-7 A4
          5.75% 6/12/50 150,000 122,069
Morgan Stanley Capital I
          Series 2005-IQ9 A4
          4.66% 7/15/56 350,000 347,007
        ·Series 2006-HQ9 A4
          5.731% 7/12/44 315,000 303,675
        ·Series 2007-IQ14 A4
          5.692% 4/15/49 150,000 122,597
        ·Series 2007-T27 A4
          5.803% 6/11/42 160,000 153,068
Total Commercial Mortgage-Backed
Securities (cost $3,829,845) 3,934,737
 
Convertible Bonds – 10.66%
Aerospace & Defense – 0.32%
L-3 Communications
          Holdings 3.00%
          exercise price $100.14,
          expiration date 8/1/35 460,000 472,650
# L-3 Communications
          Holdings 144A 3.00%
          exercise price $100.14,
          expiration date 8/1/35 25,000 25,688
498,338
Automobiles – 0.18%
Ford Motor 4.25%
          exercise price $9.30,
          expiration date 11/15/16 240,000 274,500
274,500
Banking, Finance & Insurance – 0.37%
Jefferies Group 3.875%
          exercise price $39.20
          expiration date 11/1/29 615,000 573,488
573,488
Basic Materials – 1.22%
Century Aluminum 1.75%
          exercise price $30.54,
          expiration date 8/1/24 30,000 27,863
Rayonier TRS Holdings
          3.75% exercise price
          $54.81, expiration date
          10/15/12 1,250,000 1,309,375
# Sino Forest 144A 5.00%
          exercise price $20.29,
          expiration date 8/1/13 500,000 568,750
1,905,988

(continues)     11
 


Statement of net assets
 
Delaware Enhanced Global Dividend and Income Fund
 
Principal Value
          Amount°       (U.S. $)
Convertible Bonds (continued)      
Building & Materials – 0.10%
Beazer Homes USA 4.625%
          exercise price $49.64,  
          expiration date 6/15/24 USD 170,000 $ 155,975
155,975
Computers & Technology – 1.29%
* Advanced Micro Devices
          6.00% exercise price
          $28.08, expiration date
          5/1/15 840,000 741,300
Euronet Worldwide 3.50%
          exercise price $40.48,
          expiration date 10/15/25 900,000 833,625
# Intel 144A 3.25%
          exercise price $22.68,
          expiration date 8/1/39 125,000 138,906
Linear Technology 3.00%
          exercise price $46.12,
          expiration date 5/1/27 310,000 302,638
  2,016,469
Electronics & Electrical Equipment – 0.09%
Flextronics International
          1.00% exercise price
          $15.53, expiration
          date 8/1/10 140,000 138,075
  138,075
Energy – 0.50%
Chesapeake Energy 2.25%
          exercise price $85.89,
          expiration date 12/15/38 750,000 559,688
Transocean 1.50%
          exercise price $168.61,
          expiration date 12/15/37 220,000 212,850
  772,538
Health Care & Pharmaceuticals – 1.58%
Φ Hologic 2.00%
          exercise price $38.59,
          expiration date 12/15/37 990,000 806,850
Inverness Medical
          Innovations 3.00%
          exercise price $43.98,
          expiration date 5/15/16 980,000 1,125,774
Medtronic 1.625%
          exercise price $55.41,
          expiration date 4/15/13 525,000 536,156
  2,468,780
Leisure, Lodging & Entertainment – 0.82%
# Gaylord Entertainment
          144A 3.75%
          exercise price $27.25,
          expiration date 9/29/14 655,000 620,613
# International Game
          Technology 144A 3.25%
          exercise price $19.97,
          expiration date 5/1/14 540,000   662,850
1,283,463
Real Estate – 1.27%
*# Corporate Office Properties
          144A 3.50%
          exercise price $53.12,
          expiration date 9/15/26 330,000 312,675
Developers Diversified
          Realty 3.00%
          exercise price $74.75,
          expiration date 3/15/12 90,000 82,688
*# Digital Realty Trust
          144A 5.50%
          exercise price $43.00,
          expiration date 4/15/29 380,000 488,775
National Retail Properties
          5.125% exercise price
          $25.42, expiration
          date 6/15/28 335,000 344,631
Vornado Realty Trust 2.85%
          exercise price $157.18,
          expiration date 3/15/27 750,000 753,750
  1,982,519
Telecommunications – 2.44%
Alaska Communications
          Systems Group 5.75%
          exercise price $12.90,
          expiration date 3/1/13 1,000,000 904,999
Alcatel-Lucent USA 2.875%
          exercise price $16.75,
          expiration date 6/15/23 45,000 44,719
Interpublic Group 4.25%
          exercise price $12.42,
          expiration date 3/15/23 105,000 102,638
Leap Wireless
          International 4.50%
          exercise price $93.21,
          expiration date 7/15/14 135,000 106,650
Level 3 Communications
          5.25% exercise price
          $3.98, expiration
          date 12/15/11 750,000 684,374
NII Holdings 3.125%
          exercise price $118.32,
          expiration date 6/15/12 1,000,000 908,749
Qwest Communications
          International 4.00%
          exercise price $5.12,
          expiration date 11/15/25 200,000 200,750
# SBA Communications
          144A 4.00%
          exercise price $30.38,
          expiration date 10/1/14 285,000 358,388

12
 


Principal Value
          Amount°       (U.S. $)
Convertible Bonds (continued)      
Telecommunications (continued)
VeriSign 3.25%
          exercise price $34.37,
          expiration date 8/15/37 USD 160,000 $ 134,000
# Virgin Media 144A 6.50%
          exercise price $19.22,
          expiration date 11/15/16 307,000 358,423
3,803,690
Transportation – 0.48%
Bristow Group 3.00%
          exercise price $77.34,
          expiration date 6/14/38 875,000 756,875
  756,875
Total Convertible Bonds
(cost $14,842,942) 16,630,698
 
Corporate Bonds – 36.28%
Banking – 2.88%
# Achmea Hypotheekbank
          144A 3.20% 11/3/14 110,000 112,867
· BAC Capital Trust XIV
          5.63% 12/31/49 205,000 136,838
Bank of America
          5.125% 11/15/14 100,000 103,848
          5.75% 12/1/17 75,000 76,611
Barclays Bank
          6.75% 5/22/19 100,000 113,648
# Barclays Bank 144A
          6.05% 12/4/17 100,000 104,274
BB&T 5.25% 11/1/19 87,000 87,272
Capital One Financial
          7.375% 5/23/14 150,000 172,218
Credit Suisse/New York
          6.00% 2/15/18 100,000 107,139
JPMorgan Chase Capital
          XVIII 6.95% 8/17/36 20,000 19,818
          XXII 6.45% 2/2/37 35,000 31,599
          XXV 6.80% 10/1/37 85,000 84,099
· Kazkommerts Finance 2
          8.625% 7/27/16 1,000,000 739,999
# National Australia Bank
          144A 3.375% 7/8/14 100,000 103,728
# NIBC Bank 144A
          2.80% 12/2/14 100,000 100,249
PNC Funding
          5.25% 11/15/15 100,000 105,286
          5.625% 2/1/17 60,000 60,990
@ Popular North America
          Capital Trust I
          6.564% 9/15/34 100,000 73,542
·# Rabobank
          Nederland 144A
          11.00% 12/29/49 190,000 235,579
Regions Financial
          7.75% 11/10/14 65,000   65,381
# Russian Agricultural Bank
          144A 9.00% 6/11/14 1,000,000 1,124,599
· USB Capital IX
          6.189% 10/29/49 295,000 233,050
Wachovia
          5.25% 8/1/14 20,000 21,062
          5.625% 10/15/16 90,000 94,530
· Wells Fargo Capital XIII
          7.70% 12/29/49 140,000 128,100
Westpac Banking
          4.875% 11/19/19 45,000 45,778
Zions Bancorporation
          5.50% 11/16/15 80,000 55,665
          5.65% 5/15/14 15,000 11,446
          6.00% 9/15/15 215,000 149,786
4,499,001
Basic Industry – 4.71%
# Algoma Acqusition 144A
          9.875% 6/15/15 110,000 94,050
ArcelorMittal
          6.125% 6/1/18 20,000 20,450
          9.00% 2/15/15 20,000 23,510
          9.85% 6/1/19 70,000 86,388
California Steel Industries
          6.125% 3/15/14 135,000 126,225
Century Aluminum
          7.50% 8/15/14 110,000 101,750
·# Cognis GmbH 144A
          2.299% 9/15/13 95,000 87,400
Dow Chemical
          5.70% 5/15/18 35,000 35,573
          8.55% 5/15/19 95,000 112,465
# Evraz Group 144A
          8.25% 11/10/15 1,000,000 977,499
          9.50% 4/24/18 280,000 282,100
Freeport-McMoRan
          Copper & Gold
          8.25% 4/1/15 195,000 209,363
# Innophos Holding 144A
          9.50% 4/15/12 115,000 115,575
International Paper
          7.30% 11/15/39 45,000 44,883
Lubrizol 8.875% 2/1/19 75,000 94,720
# MacDermid 144A
          9.50% 4/15/17 280,000 278,600
# Momentive Performance
          Material 144A
          12.50% 6/15/14 65,000 71,500
# NewPage 144A
          11.375% 12/31/14 140,000 138,600
· Noranda Aluminium
          Acquisition PIK
          5.274% 5/15/15 181,673 132,621

(continues)     13
 


Statement of net assets
 
Delaware Enhanced Global Dividend and Income Fund
 
Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Basic Industry (continued)
Norske Skog Canada
          8.625% 6/15/11 USD 65,000 $ 48,588
@# Norske Skogindustrier 144A  
          7.125% 10/15/33 150,000 78,750
Novelis 8.25% 2/15/15 5,000 4,538
# Novelis 144A
          11.50% 2/15/15   105,000 109,725
Reliance Steel & Aluminum  
          6.85% 11/15/36 34,000 30,125
Ryerson
        ·7.656% 11/1/14 115,000 102,063
          12.00% 11/1/15 65,000 66,463
# Sappi Papier Holding
          144A 6.75% 6/15/12 95,000 88,450
Southern Copper
          7.50% 7/27/35 1,000,000 1,005,758
# Steel Capital 144A
          9.75% 7/29/13 1,100,000 1,112,374
# Steel Dynamics 144A
          8.25% 4/15/16 190,000 192,850
# Teck Resources 144A
          10.25% 5/15/16 60,000 68,100
          10.75% 5/15/19 115,000 134,838
Vale Overseas
          6.875% 11/21/36 979,000 1,001,425
          6.875% 11/10/39 60,000 62,318
# Vedanta Resources 144A
          9.50% 7/18/18 205,000 204,488
7,344,125
Brokerage – 1.63%
Citigroup
          6.375% 8/12/14 150,000 157,944
          6.50% 8/19/13 80,000 85,372
· Citigroup Capital XXI
          8.30% 12/21/57 100,000 89,500
E TRADE Financial PIK
          12.50% 11/30/17 111,563 126,066
Goldman Sachs Group
          5.125% 1/15/15 80,000 85,017
          5.25% 10/15/13 35,000 37,756
          5.95% 1/18/18 20,000 21,433
          6.25% 9/1/17 30,000 32,750
Jefferies Group
          6.25% 1/15/36 5,000 4,058
          6.45% 6/8/27 90,000 76,787
JPMorgan Chase & Co
          6.30% 4/23/19 100,000 111,634
LaBranche & Co
          11.00% 5/15/12 350,000 337,750
Lazard Group
          6.85% 6/15/17 50,000 51,355
          7.125% 5/15/15 9,000 9,406
Morgan Stanley
          5.375% 10/15/15 100,000   105,773
          6.00% 4/28/15 160,000 174,047
# Morgan Stanley 144A
          10.09% 5/3/17 BRL 2,000,000 1,033,894
2,540,542
Capital Goods – 2.16%
AMH Holdings
          11.25% 3/1/14 USD 60,000 56,550
*# Associated Materials 144A
          9.875% 11/15/16 15,000 15,750
# BAE Systems Holdings
          144A 5.20% 8/15/15 30,000 31,822
Building Materials
          7.75% 8/1/14 155,000 154,225
# BWAY 144A
          10.00% 4/15/14 195,000 205,238
·# C8 Capital 144A
          6.64% 12/31/49 140,000 99,001
# CPM Holdings 144A
          10.625% 9/1/14 40,000 42,000
Eastman Kodak
          7.25% 11/15/13 155,000 124,000
# FMG Finance 144A
          10.625% 9/1/16 130,000 142,350
Graham Packaging
          9.875% 10/15/14 305,000 311,099
# Graphic Packaging
          International 144A
          9.50% 6/15/17 120,000 127,200
* Hexion US Finance
          9.75% 11/15/14 114,000 110,010
Intertape Polymer
          8.50% 8/1/14 85,000 66,725
# Plastipak Holdings 144A
          8.50% 12/15/15 105,000 105,394
          10.625% 8/15/19 105,000 116,025
Pregis 12.375% 10/15/13 210,000 200,550
* RBS Global/Rexnord
          11.75% 8/1/16 235,000 231,475
# Reynolds Group Issuer
          Escrow 144A
          7.75% 10/15/16 100,000 101,500
* Sally Holdings
          10.50% 11/15/16 225,000 241,874
Smurfit Kappa Funding
          7.75% 4/1/15 200,000 192,000
* Solo Cup 8.50% 2/15/14 205,000 198,338
Thermadyne Holdings
          10.50% 2/1/14 195,000 170,625
Tyco International Finance
          8.50% 1/15/19 80,000 99,389
USG 6.30% 11/15/16 205,000 178,863
# USG 144A 9.75% 8/1/14 45,000 47,363
3,369,366

14
 


Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Consumer Cyclical – 3.13%
# Allison Transmission 144A
          11.00% 11/1/15 USD 200,000 $ 208,000
* ArvinMeritor  
          8.125% 9/15/15 170,000 155,550
Beazer Homes USA  
          8.625% 5/15/11 130,000 126,750
Burlington Coat Factory
          Investment Holdings
          14.50% 10/15/14 215,000 216,613
* Burlington Coat
          Factory Warehouse
          11.125% 4/15/14 70,000 72,800
Carrols 9.00% 1/15/13 50,000 50,500
CVS Caremark
          6.60% 3/15/19 15,000 16,853
w# CVS Pass Through Trust
          144A 8.353% 7/10/31 129,295 147,159
Darden Restaurants
          6.80% 10/15/37 80,000 84,397
Denny’s Holdings
          10.00% 10/1/12 75,000 76,875
Ford Motor
          7.45% 7/16/31 270,000 231,187
Ford Motor Credit
          7.80% 6/1/12 120,000 119,973
          12.00% 5/15/15 255,000 294,186
# GMAC 144A
          6.00% 12/15/11 135,000 128,419
          6.625% 5/15/12 110,000 105,188
          6.875% 9/15/11 175,000 170,188
          6.875% 8/28/12 293,000 280,547
Interface 9.50% 2/1/14 25,000 24,906
# Interface 144A
          11.375% 11/1/13 40,000 43,950
K Hovnanian Enterprises
          6.25% 1/15/15 35,000 25,375
          7.50% 5/15/16 65,000 47,125
# K Hovnanian
          Enterprises 144A
          10.625% 10/15/16 65,000 66,625
# Landry’s Restaurants 144A
          11.625% 12/1/15 205,000 209,100
M/I Homes
          6.875% 4/1/12 90,000 84,150
Macy’s Retail Holdings
          6.375% 3/15/37 105,000 89,250
          6.70% 7/15/34 15,000 12,750
          7.875% 8/15/36 45,000 39,600
Meritage Homes
          6.25% 3/15/15 35,000 32,025
          7.00% 5/1/14 160,000 152,800
Mobile Mini
          6.875% 5/1/15 145,000 136,300
Navistar International
          8.25% 11/1/21 140,000 138,250
Norcraft Holdings
          9.75% 9/1/12 145,000 138,475
Nordstrom
          6.75% 6/1/14 55,000 62,167
          7.00% 1/15/38 35,000 38,181
* OSI Restaurant Partners
          10.00% 6/15/15 127,000 110,490
Quiksilver
          6.875% 4/15/15 200,000 154,000
Rite Aid 9.375% 12/15/15 275,000 231,687
# Standard Pacific Escrow
          144A 10.75% 9/15/16 75,000 74,625
Target 4.00% 6/15/13 60,000 63,768
* Tenneco
          8.625% 11/15/14 225,000 221,625
# Toys R Us Property 144A
          10.75% 7/15/17 5,000 5,363
# TRW Automotive 144A
          7.00% 3/15/14 100,000 95,125
          7.25% 3/15/17 100,000 93,000
  4,875,897
Consumer Non-Cyclical – 1.47%
# Alliance One International
          144A 10.00% 7/15/16 205,000 216,274
# Anheuser-Busch InBev
          Worldwide 144A
          5.375% 11/15/14 45,000 48,835
          5.375% 1/15/20 5,000 5,258
          7.20% 1/15/14 50,000 57,477
Beckman Coulter
          6.00% 6/1/15 40,000 44,779
          7.00% 6/1/19 40,000 46,564
# Cott Beverages 144A
          8.375% 11/15/17 85,000 85,213
Delhaize Group
          5.875% 2/1/14 10,000 10,918
# Dole Food 144A
          13.875% 3/15/14 91,000 107,380
# Ingles Markets 144A
          8.875% 5/15/17 115,000 118,738
# JBS USA Finance 144A
          11.625% 5/1/14 170,000 189,762
# JohnsonDiversey Holdings
          144A 10.50% 5/15/20 290,000 286,374
LVB Acquisition
          11.625% 10/15/17 110,000 120,175
LVB Acquisition PIK
          10.375% 10/15/17 85,000 91,588
# Medco Health Solutions
          144A 7.125% 3/15/18 95,000 110,117
# M-Foods Holdings 144A
          9.75% 10/1/13 65,000 67,925

(continues)     15
 


Statement of net assets
 
Delaware Enhanced Global Dividend and Income Fund
 
Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Consumer Non-Cyclical (continued)
# ServiceMaster PIK 144A
          10.75% 7/15/15 USD 150,000 $ 152,250
Smithfield Foods
          7.75% 5/15/13 155,000 144,538
# Smithfield Foods 144A
          10.00% 7/15/14 35,000 36,838
# TOPS Markets 144A
          10.125% 10/15/15 135,000 139,050
Yale University
          2.90% 10/15/14 75,000 76,985
Yankee Acquisition
          9.75% 2/15/17 145,000 139,200
2,296,238
Energy – 5.05%
# Antero Resources Finance
          144A 9.375% 12/1/17 110,000 110,825
Chesapeake Energy
          9.50% 2/15/15 140,000 147,350
Complete Production
          Services 8.00% 12/15/16 130,000 128,050
Copano Energy
          7.75% 6/1/18 125,000 125,000
Denbury Resources
          7.50% 4/1/13 10,000 10,050
          9.75% 3/1/16 105,000 111,563
*# Drummond 144A
          9.00% 10/15/14 135,000 138,375
Dynergy Holdings
          7.75% 6/1/19 210,000 172,725
El Paso
          6.875% 6/15/14 44,000 43,560
          7.00% 6/15/17 205,000 201,925
Enbridge Energy Partners
          9.875% 3/1/19 60,000 76,669
Energy Transfer Partners
          9.70% 3/15/19 45,000 56,287
Enterprise Products
          Operating
          5.00% 3/1/15 20,000 21,024
        ·8.375% 8/1/66 75,000 73,123
          9.75% 1/31/14 70,000 85,317
Forest Oil 7.25% 6/15/19 135,000 128,588
*# Headwaters 144A
          11.375% 11/1/14 140,000 143,850
# Helix Energy Solutions
          Group 144A
          9.50% 1/15/16 235,000 239,112
# Hercules Offshore 144A
          10.50% 10/15/17 140,000 142,100
# Hilcorp Energy I 144A
          7.75% 11/1/15 220,000 212,849
# Holly 144A
          9.875% 6/15/17 115,000 119,888
International Coal Group
          10.25% 7/15/14 180,000 175,500
* Key Energy Services
          8.375% 12/1/14 250,000 245,312
Kinder Morgan Energy
          Partners
          6.85% 2/15/20 15,000 17,047
          9.00% 2/1/19 30,000 37,049
Lukoil International Finance
          6.356% 6/7/17 1,000,000 977,499
Mariner Energy
          8.00% 5/15/17 270,000 256,499
MarkWest Energy Partners
          8.75% 4/15/18 125,000 126,563
# Midcontinent Express
          Pipeline 144A
          6.70% 9/15/19 40,000 40,931
# Murray Energy 144A
          10.25% 10/15/15 110,000 108,350
Nexen 7.50% 7/30/39 60,000 67,709
Noble Energy
          8.25% 3/1/19 60,000 72,920
OPTI Canada
          7.875% 12/15/14 255,000 203,999
Petrobras International
          Finance
          5.75% 1/20/20 45,000 46,069
PetroHawk Energy
          7.875% 6/1/15 55,000 55,138
Petroleum Development
          12.00% 2/15/18 145,000 147,175
Plains All American Pipeline
          5.75% 1/15/20 105,000 109,287
Plains Exploration
          & Production
          8.625% 10/15/19 25,000 25,188
Pride International
          8.50% 6/15/19 50,000 55,625
Quicksilver Resources
          7.125% 4/1/16 115,000 104,363
          11.75% 1/1/16 30,000 33,488
Regency Energy Partners
          8.375% 12/15/13 85,000 87,763
# SandRidge Energy 144A
          9.875% 5/15/16 185,000 190,550
TNK-BP Finance
          7.875% 3/13/18 2,000,000 2,017,499
· TransCanada PipeLines
          6.35% 5/15/67 45,000 42,167
Weatherford International
          4.95% 10/15/13 45,000 47,835
          5.95% 6/15/12 25,000 27,057
# Woodside Finance 144A
          4.50% 11/10/14 45,000 46,117
          5.00% 11/15/13 20,000 20,886
7,873,815

16
 


Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Finance & Investments – 1.21%
Capital One Capital V
          10.25% 8/15/39 USD 200,000 $ 220,549
Cardtronics
          9.25% 8/15/13 125,000 127,813
General Electric Capital
          6.00% 8/7/19 250,000 263,824
*·# ILFC E-Capital Trust II 144A
          6.25% 12/21/65 50,000 23,500
International Lease Finance
          5.25% 1/10/13 135,000 108,878
          5.35% 3/1/12 65,000 55,472
          5.55% 9/5/12 90,000 72,531
          5.625% 9/20/13 165,000 129,958
          5.875% 5/1/13 30,000 23,785
          6.375% 3/25/13 70,000 56,389
          6.625% 11/15/13 145,000 117,133
MetLife 6.40% 12/15/36 155,000 131,363
·# MetLife Capital Trust X 144A
          9.25% 4/8/38 125,000 131,250
@# Nuveen Investments 144A
          10.50% 11/15/15 415,000 367,274
WellPoint
          6.00% 2/15/14 30,000 32,800
          7.00% 2/15/19 25,000 28,798
1,891,317
Media – 2.34%
Affinion Group
          11.50% 10/15/15 100,000 104,500
# Cablevision Systems 144A
          8.625% 9/15/17 75,000 77,250
# Cengage Learning
          Acquisitions 144A
          10.50% 1/15/15 80,000 74,600
# Charter Communications
          Operating 144A
          8.00% 4/30/12 45,000 46,013
          8.375% 4/30/14 95,000 97,138
          10.875% 9/15/14 520,000 581,749
# Columbus
          International 144A
          11.50% 11/20/14 130,000 133,744
Comcast
          4.95% 6/15/16 45,000 47,052
          6.50% 1/15/15 20,000 22,507
# COX Communications 144A
          5.875% 12/1/16 25,000 26,479
          6.95% 6/1/38 10,000 10,682
          8.375% 3/1/39 25,000 30,694
DIRECTV Holdings
          7.625% 5/15/16 70,000 75,521
DISH DBS 7.875% 9/1/19 80,000 81,000
# DISH DBS 144A
          7.875% 9/1/19 55,000 55,688
@ Grupo Televisa
          8.49% 5/11/37 MXN   10,000,000   649,799
# MDC Partners 144A
          11.00% 11/1/16 USD 70,000 70,350
# Mediacom Capital 144A
          9.125% 8/15/19 140,000 142,800
Nielsen Finance
          10.00% 8/1/14 110,000 114,125
          11.50% 5/1/16 40,000 43,200
          *11.625% 2/1/14 35,000 37,800
         W12.50% 8/1/16 95,000 83,600
# Nielsen Finance 144A
          11.625% 2/1/14 50,000 54,000
*# Sinclair Television Group
          144A 9.25% 11/1/17 95,000 96,781
# Terremark Worldwide 144A
          12.00% 6/15/17 95,000 104,144
Time Warner Cable
          6.75% 7/1/18 20,000 22,363
*# Univision Communications
          144A 12.00% 7/1/14 95,000 103,788
# UPC Holding 144A
          9.875% 4/15/18 100,000 104,500
# Vivendi 144A
          5.75% 4/4/13 85,000 90,469
          6.625% 4/4/18 45,000 49,366
WPP Finance UK
          8.00% 9/15/14 100,000 114,112
XM Satellite Radio
          Holdings PIK
          10.00% 6/1/11 185,000 177,600
# XM Satellite Radio 144A
          13.00% 8/1/13 125,000 130,313
3,653,727
Real Estate – 0.17%
Developers Diversified
          Realty 9.625% 3/15/16 45,000 46,911
# Felcor Lodging 144A
          10.00% 10/1/14 130,000 127,400
ProLogis
          7.375% 10/30/19 60,000 60,938
* Regency Centers
          5.875% 6/15/17 35,000 33,587
268,836
Services Cyclical – 2.02%
ARMARK 8.50% 2/1/15 80,000 80,600
# Ashtead Capital 144A
          9.00% 8/15/16 100,000 98,500
Avis Budget Car Rental
          7.625% 5/15/14 185,000 171,125
          7.75% 5/15/16 125,000 112,500
CSX 5.75% 3/15/13 25,000 27,321
Delta Air Lines
          7.92% 11/18/10 90,000 90,000

(continues)     17
 


Statement of net assets
 
Delaware Enhanced Global Dividend and Income Fund
 
Principal Value
           Amount°       (U.S. $)
Corporate Bonds (continued)      
Services Cyclical (continued)
# Delta Air Lines 144A
          9.50% 9/15/14 USD 60,000 $ 61,200
# Galaxy Entertainment
          Finance 144A
          9.875% 12/15/12 305,000 308,049
Gaylord Entertainment
          6.75% 11/15/14 80,000 72,800
# General Maritime 144A
          12.00% 11/15/17 80,000 83,400
Global Cash Access
          8.75% 3/15/12 40,000 39,350
# Harrah’s Operating 144A
          10.00% 12/15/18 225,000 172,125
* Hertz 10.50% 1/1/16 140,000 146,300
Kansas City Southern
          de Mexico
          9.375% 5/1/12 250,000 256,875
MGM Mirage
          6.625% 7/15/15 60,000 45,000
          7.50% 6/1/16 175,000 133,438
          *7.625% 1/15/17 130,000 99,450
          13.00% 11/15/13 95,000 108,181
Mohegan Tribal
          Gaming Authority
          7.125% 8/15/14 95,000 60,325
*# NCL 144A
          11.75% 11/15/16 70,000 69,388
PHH 7.125% 3/1/13 135,000 126,563
Pinnacle Entertainment
          7.50% 6/15/15 330,000 295,350
Royal Caribbean Cruises
          6.875% 12/1/13 125,000 118,125
* RSC Equipment Rental
          9.50% 12/1/14 210,000 206,588
# Shingle Springs Tribal
          Gaming Authority
          144A 9.375% 6/15/15 230,000 167,900
3,150,453
Services Non-Cyclical – 1.91%
Accellent 10.50% 12/1/13 100,000 96,750
# Alliance HealthCare
          Services 144A
          8.00% 12/1/16 65,000 64,350
Allied Waste
          North America
          6.875% 6/1/17 10,000 10,603
          7.125% 5/15/16 105,000 111,444
* Bausch & Lomb
          9.875% 11/1/15 205,000 211,663
# CareFusion 144A
          6.375% 8/1/19 105,000 116,583
Casella Waste Systems
          9.75% 2/1/13 305,000 298,900
Cornell 10.75% 7/1/12 60,000 61,500
DJO Finance
          10.875% 11/15/14 120,000   126,900
HCA 9.25% 11/15/16 175,000 185,500
Hospira 6.40% 5/15/15 155,000 175,717
Inverness Medical  
          Innovations  
          9.00% 5/15/16 160,000 162,800
* Psychiatric Solutions
          7.75% 7/15/15     140,000 135,800
# Psychiatric Solutions 144A
          7.75% 7/15/15 60,000 56,700
Quest Diagnostic
          5.45% 11/1/15 120,000 132,456
          6.40% 7/1/17 35,000 39,315
Select Medical
          7.625% 2/1/15 345,000 332,063
Tenet Healthcare
          7.375% 2/1/13 135,000 133,650
UnitedHealth Group
          5.50% 11/15/12 80,000 86,059
          5.80% 3/15/36 10,000 9,367
          6.00% 2/15/18 25,000 26,671
Universal Hospital Services
          PIK 8.50% 6/1/15 120,000 118,800
· US Oncology Holdings
          6.428% 3/15/12 280,000 253,400
WellPoint
          5.00% 1/15/11 15,000 15,575
          5.00% 12/15/14 16,000 17,108
2,979,674
Technology – 0.70%
CA 5.375% 12/1/19 20,000 20,543
Cisco Systems
          4.45% 1/15/20 35,000 35,673
First Data 9.875% 9/24/15 280,000 250,600
* Freescale Semiconductor
          8.875% 12/15/14 165,000 141,075
* Sanmina-SCI
          8.125% 3/1/16 231,000 225,803
* SunGard Data Systems
          10.25% 8/15/15 250,000 257,500
# Unisys 144A
          12.75% 10/15/14 110,000 123,200
Xerox 8.25% 5/15/14 35,000 40,758
1,095,152
Telecommunications – 5.21%
American Tower
          7.00% 10/15/17 50,000 55,250
AT&T 6.50% 9/1/37 115,000 122,630
Cincinnati Bell
          8.25% 10/15/17 100,000 99,750
Citizens Utilities
          7.125% 3/15/19 120,000 112,500
# Clearwire Communications
          144A 12.00% 12/1/15 280,000 275,975

18
 


Principal Value
           Amount°       (U.S. $)
Corporate Bonds (continued)      
Telecommunications (continued)