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: May 31, 2013


Item 1. Reports to Stockholders

   
   
   
   
Semiannual report
Delaware
Enhanced Global 
Dividend and Income
Fund
 
 
  May 31, 2013 
   
 
   
 
 
 
 
 
 
 
The figures in the semiannual 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
 
      Security type/sector and country allocations 1
 
Statement of net assets 3
 
Statement of operations 17
 
Statements of changes in net assets 18
 
Statement of cash flows 19
 
Financial highlights 20
 
Notes to financial statements 21
 
Other Fund information 30
 
About the organization 33
 
 


 
Unless otherwise noted, views expressed herein are current as of May 31, 2013, and 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, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

© 2013 Delaware Management Holdings, Inc.

All third-party marks cited are the property of their respective owners.


Security type/sector and country allocations

Delaware Enhanced Global Dividend and Income Fund
As of May 31, 2013 (Unaudited)

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/sector of net assets
Common Stock 60.98 %
Consumer Discretionary 7.71 %
Consumer Staples 5.77 %
Diversified REITs 0.82 %
Energy 5.84 %
Financials 6.64 %
Healthcare 7.95 %
Healthcare REITs 0.27 %
Hotel REITs 0.54 %
Industrial REITs 1.08 %
Industrials 6.15 %
Information Technology 5.34 %
Mall REITs 0.88 %
Manufactured Housing REITs 0.25 %
Materials 3.99 %
Mixed REITs 0.23 %
Mortgage REITs 0.28 %
Multifamily REITs 0.47 %
Office REITs 0.71 %
Real Estate Management & Development 0.02 %
Self-Storage REITs 0.18 %
Shopping Center REITs 0.92 %
Single Tenant REIT 0.18 %
Specialty REITs 0.74 %
Telecommunications 2.90 %
Utilities 1.12 %
Convertible Preferred Stock 2.41 %
Exchange-Traded Fund 0.23 %
Agency Collateralized Mortgage Obligations 0.09 %
Agency Mortgage-Backed Securities 0.70 %
Commercial Mortgage-Backed Securities 0.11 %
Convertible Bonds 13.11 %
Automotive 0.68 %
Basic Industry 0.35 %
Capital Goods 1.45 %
Communications 1.70 %
Consumer Cyclical 1.65 %
Consumer Non-Cyclical 2.27 %
Energy 0.61 %
Financials 0.78 %
Industrials 0.19 %
Insurance 0.22 %
Real Estate Investment Trust 0.32 %
Technology 2.89 %
Corporate Bonds 40.20 %
Automotive 0.92 %
Banking 1.11 %
Basic Industry 4.56 %
Brokerage 0.03 %
Capital Goods 2.84 %
Communications 3.54 %
Consumer Cyclical 2.84 %
Consumer Non-Cyclical 1.53 %
Energy 6.97 %
Financials 0.83 %
Healthcare 2.45 %
Industrials 0.02 %
Insurance 1.68 %
Media 3.20 %
Natural Gas 0.13 %
Real Estate Investment Trusts 0.08 %
Services 4.16 %
Technology 2.24 %
Transportation 0.04 %
Utilities 1.03 %
Non-Agency Asset-Backed Security 0.01 %
Non-Agency Collateralized Mortgage Obligations 0.11 %
Senior Secured Loans 0.74 %
Sovereign Bonds 4.14 %
U.S. Treasury Obligations 0.46 %
Leveraged Non-Recourse Security 0.00 %
Limited Partnerships 0.36 %
Preferred Stock 0.79 %
Short-Term Investments 6.44 %
Securities Lending Collateral 7.02 %
Total Value of Securities 137.90 %
Obligation to Return Securities Lending Collateral (7.15 %)
Borrowing Under Line of Credit (31.86 %)
Receivables and Other Assets Net of Other Liabilities 1.11 %
Total Net Assets 100.00 %

(continues)       1


Security type/sector and country allocations

Delaware Enhanced Global Dividend and Income Fund

  Percentage
*Country of net assets
Australia 0.76 %
Austria 0.41 %
Barbados 0.15 %
Bermuda 0.53 %
Brazil 2.79 %
Canada 4.00 %
Cayman Islands 0.84 %
China/Hong Kong 1.95 %
Denmark 0.77 %
France 8.49 %
Germany 2.80 %
Indonesia 0.78 %
Ireland 0.96 %
Israel 1.06 %
Italy 1.02 %
Japan 7.27 %
Jersey 0.38 %
Luxembourg 2.40 %
Marshall Island 0.19 %
Mexico 0.89 %
Multinational 0.08 %
Netherlands 1.82 %
Norway 0.00 %
Panama 0.60 %
Poland 0.32 %
Republic of Korea 0.38 %
Russia 0.64 %
Singapore 0.06 %
Spain 0.16 %
Sweden 1.66 %
Switzerland 3.05 %
Turkey 0.14 %
United Kingdom 5.93 %
United States 71.16 %
Total 124.44 %

* Allocation includes all investments except for short-term investments and securities lending collateral.

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 5 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.

2


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund
May 31, 2013 (Unaudited)

           Number of Value
Shares       (U.S. $)
vCommon Stock – 60.98%  
Consumer Discretionary – 7.71%
Bayerische Motoren Werke 13,931 $ 1,322,029
Carnival 43,200 1,429,920
† DIRECTV Class A 2,250   137,543
Don Quijote 20,800 937,754
Genuine Parts 8,900 691,886
Hyundai Home Shopping Network 5,582 784,124
Kering 5,219 1,134,124
L Brands 4,124 206,241
Mattel 16,100 720,475
Nitori Holdings 17,554 1,381,872
Publicis Groupe 22,134 1,583,696
Techtronic Industries 305,500 783,732
Toyota Motor 51,505 3,006,995
† United Rentals 3,729 211,956
Yue Yuen Industrial Holdings 539,000 1,570,501
15,902,848
Consumer Staples – 5.77%
Archer-Daniels-Midland 15,500 499,565
† Aryzta 49,227 2,824,750
Carlsberg Class B 16,790 1,594,549
ConAgra Foods 30,500 1,027,545
Greggs 38,196 236,326
Kimberly-Clark 10,500 1,016,715
Kraft Foods Group 19,500 1,075,035
Lorillard 24,800 1,052,512
* Safeway 32,100 738,621
TESCO 330,677 1,831,148
11,896,766
Diversified REITs – 0.82%
Champion REIT 125,000 59,066
Fibra Uno Administracion 87,563 303,964
Investors Real Estate Trust 10,260 92,340
Lexington Realty Trust 52,975 666,955
Mapletree Logistics Trust 70,996 67,897
* Nieuwe Steen Investments 89 625
Orix JREIT 40 43,077
Stockland 70,059 243,101
Vornado Realty Trust 2,641 211,148
1,688,173
Energy – 5.84%
Chevron 5,700 699,675
CNOOC 824,000 1,443,413
ConocoPhillips 11,700 717,678
Occidental Petroleum 6,100 561,627
Royal Dutch Shell ADR 15,600 1,073,748
Saipem 26,977 719,383
Spectra Energy 23,700 724,509
* Subsea 7 61,141 1,346,755
Total 40,273 2,012,980
Total ADR 21,800 1,086,730
Transocean 23,100 1,160,313
Williams 14,400 506,592
12,053,403
Financials – 6.64%
  Aspen Insurance Holdings 3,522 129,386
* AXA 101,928 2,057,897
BB&T 33,700 1,109,404
Fifth Street Finance 16,638 174,699
Gallagher (Arthur J.) 24,100 1,052,688
Home Loan Servicing Solutions 32,995 753,606
Marsh & McLennan 18,400 736,368
Mitsubishi UFJ Financial Group 406,128 2,357,909
Nordea Bank 153,298 1,883,419
Nordea Bank FDR 38,212 470,163
Solar Capital 8,309 191,107
Standard Chartered 59,846 1,385,745
UniCredit 248,430 1,394,236
13,696,627
Healthcare – 7.95%
AbbVie 15,500 661,695
† Alliance HealthCare Services 1,689 27,379
AstraZeneca ADR 14,700 753,375
Baxter International 7,300 513,409
Bristol-Myers Squibb 19,000 874,190
Cardinal Health 10,900 511,864
Johnson & Johnson 10,400 875,472
* Meda Class A 51,214 658,125
Merck 29,800 1,391,660
Novartis 32,073 2,298,055
Pfizer 40,960 1,115,341
Sanofi 24,139 2,573,898
Stada Arzneimittel 44,913 1,964,113
Teva Pharmaceutical Industries ADR 57,100 2,181,220
16,399,796
Healthcare REITs – 0.27%
HCP 1,100 52,118
Health Care REIT 1,875 127,556
Ventas 5,342 381,259
560,933
Hotel REITs – 0.54%
Ashford Hospitality Trust 61,800 816,378
DiamondRock Hospitality 17,600 167,376
LaSalle Hotel Properties 1,200 31,680
Summit Hotel Properties 9,300 91,791
1,107,225
Industrial REITs – 1.08%
DCT Industrial Trust 16,877 124,552
First Industrial Realty Trust 63,827 1,078,038
Goodman Group 49,447 241,466
ProLogis 385 15,516
STAG Industrial 35,063 771,386
2,230,958
Industrials – 6.15%
* Alstom 30,096 1,132,731
† Delta Air Lines 6 108
Deutsche Post 68,399 1,723,646
East Japan Railway 23,261 1,723,176

(continues)       3


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

           Number of Value
Shares (U.S. $)
vCommon Stock (continued)        
Industrials (continued)
† Flextronics International 7,400 $ 55,204
ITOCHU 156,202 1,936,522
Koninklijke Philips Electronics 53,706 1,520,741
Northrop Grumman 8,900 733,271
Raytheon 16,400 1,092,896
Vinci 32,945 1,689,580
Waste Management 25,900 1,085,987
12,693,862
Information Technology – 5.34%
Applied Materials 62,300 946,960
* Canon ADR 19,700 675,316
*† CGI Group Class A 105,751 3,238,494
Cisco Systems 37,700 907,816
Intel 53,200 1,291,696
Microsoft 23,600 823,168
Teleperformance 47,893 2,254,206
Xerox 100,000 879,000
11,016,656
Mall REITs – 0.88%
CBL & Associates Properties 8,968 206,174
General Growth Properties 12,497 256,563
Macerich 389 25,250
Pennsylvania Real Estate
          Investment Trust 8,500 169,065
* Rouse Properties 748 15,042
Simon Property Group 6,908 1,149,769
1,821,863
Manufactured Housing REITs – 0.25%
Equity Lifestyle Properties 2,478 191,227
Sun Communities 6,586 329,103
520,330
Materials – 3.99%
AuRico Gold 125,665 638,964
Dow Chemical 17,800 613,388
duPont (E.I.) deNemours 11,900 663,901
Lafarge 24,369 1,737,771
Rexam 181,927 1,456,239
Rio Tinto 35,909 1,533,751
Yamana Gold 134,679 1,587,898
8,231,912
Mixed REITs – 0.23%
Duke Realty 11,447 189,677
* DuPont Fabros Technology 2,500 60,575
Liberty Property Trust 4,797 194,662
PS Business Parks 400 30,524
475,438
Mortgage REITs – 0.28%
Chimera Investment 17,000 51,850
Starwood Property Trust 20,900 530,233
582,083
Multifamily REITs – 0.47%
Apartment Investment
            & Management 15,728 475,930
BRE Properties 1,000 49,990
Camden Property Trust 5,109 353,798
Equity Residential 1,597 90,310
970,028
Office REITs – 0.71%
* Alstria Office REIT 33,657 406,966
Commonwealth Property
          Office Fund 105,000 110,321
Government Properties
          Income Trust 4,752 115,521
Link REIT 33,000 170,196
Mack-Cali Realty 11,500 304,750
Parkway Properties 20,673 355,162
1,462,916
Real Estate Management & Development – 0.02%
Cyrela Brazil Realty 4,100 32,549
32,549
Self-Storage REITs – 0.18%
Extra Space Storage 4,555 190,809
Public Storage 1,150 174,570
365,379
Shopping Center REITs – 0.92%
Agree Realty 9,350 311,635
Charter Hall Retail REIT 71,117 278,931
* Corio 2,685 119,673
Equity One 1,500 34,995
First Capital Realty 2,922 54,524
Kimco Realty 12,857 284,783
Ramco-Gershenson
          Properties Trust 19,634 306,487
Regency Centers 900 46,440
Unibail-Rodamco 910 223,570
Westfield Group 16,989 186,579
Westfield Retail Trust 21,112 61,991
1,909,608
Single Tenant REIT – 0.18%
* National Retail Properties 10,537 377,962
377,962
Specialty REITs – 0.74%
EPR Properties 8,736 457,941
Gladstone Land 18,590 284,241
GLP J-REIT 304 279,676
Nippon Prologis REIT 50 402,333
Plum Creek Timber 1,520 72,504
Rayonier 450 24,930
1,521,625
Telecommunications – 2.90%
AT&T 26,600 930,734
=† Century Communications 125,000 0
CenturyLink 5,543 189,293
France Telecom ADR 900 9,090

4


           Number of Value
Shares       (U.S. $)
vCommon Stock (continued)
Telecommunications (continued)
KDDI 33,370 $ 1,506,054
Mobile TeleSystems ADR 68,000 1,310,360
NTT DOCOMO ADR 51,600 757,488
Verizon Communications 14,100 683,568
Vodafone Group 203,080 588,568
5,975,155
Utilities – 1.12%
American Water Works 800 31,952
Edison International 11,200 514,528
National Grid 61,244 728,240
* National Grid ADR 11,600 690,896
NorthWestern 3,800 156,408
NRG Energy 7,753 197,857
2,319,881
Total Common Stock
(cost $108,072,793) 125,813,976
 
Convertible Preferred Stock – 2.41%
# Chesapeake Energy 144A
          5.75% exercise price
          $27.83, expiration
          date 12/31/49 430 473,000
El Paso Energy Capital
          Trust I 4.75% exercise
          price $34.49, expiration
          date 3/31/28 1,950 115,928
HealthSouth 6.50% exercise
          price $30.50, expiration
          date 12/31/49 835 1,019,952
Huntington Bancshares 8.50%
          exercise price $11.95,
          expiration date 12/31/49 510 675,755
MetLife 5.00% exercise
          price $44.28, expiration
          date 9/4/13 13,000 691,730
PPL 9.50% exercise price
          $28.80, expiration
          date 7/1/13 11,250 590,288
SandRidge Energy
          7.00% exercise price $7.76,
          expiration date 12/31/49 3,600 318,825
          8.50% exercise price $8.01,
          expiration date 12/31/49 2,205 213,069
Wells Fargo 7.50% exercise
          price $156.71, expiration
          date 12/31/49 695 872,225
Total Convertible Preferred Stock
(cost $4,434,574) 4,970,772
 
Exchange-Traded Fund – 0.23%  
*† iPATH S&P 500 VIX Short-Term  
          Futures ETN 25,000   479,500
Total Exchange-Traded Fund
(cost $1,178,000) 479,500
 
Principal
Amount°
Agency Collateralized Mortgage Obligations – 0.09%
Fannie Mae REMICs
          Series 2001-50 BA
          7.00% 10/25/41 USD 91,130 105,990
          Series 2003-122 AJ
          4.50% 2/25/28 6,183 6,194
Freddie Mac REMICs
          Series 2557 WE
          5.00% 1/15/18 42,898 45,714
          Series 3131 MC
          5.50% 4/15/33 10,164 10,242
          Series 3173 PE
          6.00% 4/15/35 28,657 29,521
Total Agency Collateralized
Mortgage Obligations
(cost $180,868) 197,661
 
Agency Mortgage-Backed Securities – 0.70%
• Fannie Mae ARM
          2.423% 3/1/38 12,153 12,902
          2.428% 4/1/36 36,885 39,522
          2.541% 4/1/36 9,461 10,058
          2.717% 10/1/36 5,965 6,387
          2.81% 11/1/35 9,076 9,697
          2.884% 10/1/36 9,802 10,451
Fannie Mae S.F. 15 yr
          4.00% 11/1/25 114,976 123,926
          5.50% 1/1/23 20,300 22,101
Fannie Mae S.F. 15 yr TBA
          2.50% 6/1/28 71,000 72,445
          2.50% 7/1/28 40,000 40,727
          3.00% 6/1/28 41,000 42,659
          3.00% 7/1/28 40,000 41,563
Fannie Mae S.F. 20 yr 5.50% 12/1/29 1,453 1,577
Fannie Mae S.F. 30 yr
          3.50% 3/1/43 1,994 2,069
          4.00% 11/1/40 2,138 2,255
          4.00% 9/1/41 1,473 1,555
          4.50% 7/1/36 1,722 1,841
          6.50% 6/1/36 16,789 18,979
          6.50% 10/1/36 11,976 13,448
          6.50% 12/1/37 17,533 19,774
Freddie Mac 6.00% 1/1/17 3,939 4,014
• Freddie Mac ARM
          2.76% 7/1/36 8,134 8,713
          5.775% 10/1/36 13,939 14,882

(continues)       5


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

           Principal Value
Amount° (U.S. $)
Agency Mortgage-Backed Securities (continued)
Freddie Mac S.F. 15 yr            
          5.00% 6/1/18 USD 7,484 $ 7,925
          5.00% 12/1/22 34,742 37,299
Freddie Mac S.F. 30 yr  
          5.00% 1/1/34   345,014 371,316
          7.00% 11/1/33 29,503 34,459
          9.00% 9/1/30 44,122 48,547
GNMA I S.F. 30 yr
          7.50% 12/15/23 60,630 76,671
          7.50% 1/15/32 51,231 61,732
          9.50% 9/15/17 35,562 39,524
          12.00% 5/15/15 14,784 15,713
GNMA II S.F. 30 yr
          6.00% 11/20/28 56,648 62,887
          6.50% 2/20/30 141,170 157,939
Total Agency Mortgage-Backed
Securities (cost $1,328,071) 1,435,557
 
Commercial Mortgage-Backed Securities – 0.11%
• Bear Stearns Commercial
          Mortgage Securities Series
          2006-PW12 A4
          5.716% 9/11/38 25,000 27,844
•t COMM Mortgage Trust
          Certificates Series 2005-C6
          A5A 5.116% 6/10/44 10,000 10,780
GS Mortgage Securities II
        •Series 2004-GG2 A6
          5.396% 8/10/38 60,000 61,961
          Series 2005-GG4 A4A
          4.751% 7/10/39 30,000 31,669
        •Series 2006-GG6 A4
          5.553% 4/10/38 10,000 10,994
• JPMorgan Chase Commercial
          Mortgage Securities
          Series 2005-LDP3 A4A
          4.936% 8/15/42 35,000 37,500
• Morgan Stanley Capital I
          Trust Series 2007-T27 A4
          5.647% 6/11/42 25,000 28,742
WF-RBS Commercial Mortgage
          Trust Series 2013-C11 A5
          3.071% 3/15/45 10,000 9,927
Total Commercial Mortgage-
Backed Securities
(cost $183,476) 219,417
 
Convertible Bonds – 13.11%
Automotive – 0.68%
ϕ ArvinMeritor 4.00%
          exercise price $26.73,
          expiration date 2/12/27 1,493,000 1,398,753
1,398,753
Basic Industry – 0.35%
* Peabody Energy 4.75%
          exercise price $57.95,
            expiration date 12/15/41 391,000 338,459
Steel Dynamics 5.125%
          exercise price $17.25,
          expiration date 6/15/14 341,000 377,232
  715,691
Capital Goods – 1.45%
L-3 Communications
          Holdings 3.00%
          exercise price $90.24,
          expiration date 8/1/35 769,000 790,148
# Owens-Brockway Glass
          Container 144A 3.00%
          exercise price $47.47,
          expiration date 5/28/15 1,245,000 1,277,681
Titan Machinery 3.75%
          exercise price $43.17,
          expiration date 4/30/19 947,000 929,244
  2,997,073
Communications – 1.70%
# Alaska Communications
          Systems Group
          144A 6.25%
          exercise price $10.28,
          expiration date 4/27/18 597,000 477,227
# Blucora 144A 4.25%
          exercise price $21.66,
          expiration date 3/29/19 317,000 358,804
# Clearwire Communications
          144A 8.25%
          exercise price $7.08,
          expiration date 11/30/40 568,000 632,965
Leap Wireless International 4.50%
          exercise price $93.21,
          expiration date 7/10/14 826,000 843,553
Rovi 2.625%
          exercise price $47.36,
          expiration date 2/10/40 497,000 515,016
SBA Communications 4.00%
          exercise price $30.38,
          expiration date 9/29/14 274,000 684,315
3,511,880
Consumer Cyclical – 1.65%
Iconix Brand Group 2.50%
          exercise price $30.75,
          expiration date 5/31/16 634,000 742,573
International Game
          Technology 3.25%
          exercise price $19.93,
          expiration date 5/1/14 493,000 540,143

6


          Principal Value
Amount°       (U.S. $)
Convertible Bonds (continued)      
Consumer Cyclical (continued)
Live Nation Entertainment
          2.875% exercise price
          $27.14, expiration
          date 7/14/27 USD 1,232,000 $ 1,242,780
MGM Resorts International
          4.25% exercise price
          $18.58, expiration
          date 4/10/15 768,000   875,040
3,400,536
Consumer Non-Cyclical – 2.27%
Alere 3.00%
          exercise price $43.98,
          expiration date 5/15/16 705,000 708,525
Dendreon 2.875%  
            exercise price $51.24,
          expiration date 1/13/16 586,000 440,965
*Φ Hologic 2.00%  
          exercise price $31.17,
          expiration date 2/27/42 597,000 617,895
# Illumina 144A 0.25%
          exercise price $83.55,
          expiration date 3/11/16     297,000 318,718
LifePoint Hospitals 3.50%
          exercise price $51.79,
          expiration date 5/14/14 870,000 958,631
  Mylan 3.75%
          exercise price $13.32,
          expiration date 9/15/15 188,000 438,275
NuVasive 2.75%
          exercise price $42.13,
          expiration date 6/30/17 1,077,000 1,058,825
# Opko Health 144A 3.00%
          exercise price $7.07,
          expiration date 1/28/33 143,000 139,336
4,681,170
Energy – 0.61%
* Chesapeake Energy 2.50%
          exercise price $50.90,
          expiration date 5/15/37 349,000 350,527
Helix Energy Solutions
          Group 3.25%
          exercise price $25.02,
          expiration date 3/12/32 697,000 903,486
1,254,013
Financials – 0.78%
Ares Capital 5.75%
          exercise price $19.13,
          expiration date 2/1/16 561,000 618,503
BGC Partners 4.50%
          exercise price $9.84,
          expiration date 7/13/16 365,000 379,600
PHH 4.00%
          exercise price $25.81,
          expiration date 8/27/14 573,000 620,272
1,618,375
Industrials – 0.19%
Φ General Cable 4.50%
          exercise price $36.75,
          expiration date 11/15/29 310,000 385,563
385,563
Insurance – 0.22%
# WellPoint 144A 2.75%
          exercise price $75.47,
          expiration date 10/15/42 374,000 458,618
458,618
Real Estate Investment Trust – 0.32%
# Lexington Realty Trust 144A
          6.00% exercise price $6.93,
          expiration date 1/11/30 358,000 665,209
665,209
Technology – 2.89%
Advanced Micro Devices
          6.00% exercise price $28.08,
          expiration date 4/30/15 898,000 926,062
        #144A 6.00% exercise price
          $28.08, expiration date
          4/30/15 31,000 31,969
# Ciena 144A 3.75%
          exercise price $20.17,
          expiration date 10/15/18 535,000 636,316
Intel 3.25%
          exercise price $21.94,
          expiration date 8/1/39 501,000 654,747
Linear Technology 3.00%
          exercise price $41.46,
          expiration date 4/30/27 541,000 576,503
Nuance Communications 2.75%
          exercise price $32.30,
          expiration date 11/1/31 766,000 797,597
SanDisk 1.50% exercise price
          $52.37, expiration date 8/11/17 529,000 704,562
TIBCO Software 2.25%
          exercise price $50.57,
          expiration date 4/30/32 1,004,000 993,332
VeriSign 3.25%
          exercise price $34.37,
          expiration date 8/15/37 424,000 633,350
5,954,438
Total Convertible Bonds
(cost $23,995,804) 27,041,319
 
Corporate Bonds – 40.20%
Automotive – 0.92%
American Axle & Manufacturing
          7.75% 11/15/19 55,000 62,975
Chrysler Group 8.25% 6/15/21 515,000 584,525
Dana Holding 6.75% 2/15/21 119,000 128,520
# International Automotive
          Components Group 144A
          9.125% 6/1/18 445,000 442,219

(continues)       7


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

          Principal Value
Amount°       (U.S. $)
Corporate Bonds (continued)      
Automotive (continued)
# Jaguar Land Rover
          Automotive 144A
          5.625% 2/1/23 USD 200,000 $ 205,500
            8.125% 5/15/21 260,000 294,450
Meritor 6.75% 6/15/21 190,000 188,575
  1,906,764
Banking – 1.11%
Bank of America
          2.00% 1/11/18 30,000 29,763
            3.875% 3/22/17 10,000 10,697
         •5.20% 12/29/49 210,000 208,950
• Bank of New York Mellon
          4.50% 12/31/49 10,000 10,063
* Barclays Bank 7.625% 11/21/22 375,000 377,813
Citigroup 3.50% 5/15/23 10,000 9,424
City National 5.25% 9/15/20 15,000 16,888
• Fifth Third Bancorp
          5.10% 12/31/49 195,000 195,000
• Fifth Third Capital Trust IV
          6.50% 4/15/37 5,000 5,031
#• HBOS Capital Funding 144A
          6.071% 6/29/49 864,000 792,719
HSBC Holdings 4.00% 3/30/22 20,000 21,244
JPMorgan Chase 1.625% 5/15/18 10,000 9,824
Morgan Stanley
          2.125% 4/25/18 20,000 19,765
          4.10% 5/22/23 30,000 28,800
• PNC Financial Services Group
          4.494% 5/29/49 10,000 10,000
          4.85% 5/29/49 5,000 4,975
PNC Funding
          5.125% 2/8/20 30,000 34,643
          5.625% 2/1/17 35,000 39,502
Regions Financial 2.00% 5/15/18 5,000 4,902
Santander Holdings USA
          4.625% 4/19/16 10,000 10,705
State Street 3.10% 5/15/23 10,000 9,744
* SVB Financial Group
          5.375% 9/15/20 25,000 28,313
# Turkiye Halk Bankasi 144A
          3.875% 2/5/20 300,000 296,250
• USB Capital IX 3.50% 10/29/49 80,000 75,800
Wachovia
         •0.647% 10/15/16 10,000 9,877
          5.25% 8/1/14 20,000 21,035
Zions Bancorporation
          4.50% 3/27/17 5,000 5,390
          7.75% 9/23/14 5,000 5,400
2,292,517
Basic Industry – 4.56%
AK Steel 7.625% 5/15/20 221,000 198,900
# American Builders &
          Contractors Supply 144A
          5.625% 4/15/21 110,000 111,650
# APERAM 144A 7.75% 4/1/18 225,000 225,000
ArcelorMittal
          6.125% 6/1/18 775,000 824,405
          10.35% 6/1/19 15,000 18,638
# Barrick Gold 144A
          2.50% 5/1/18 5,000 4,940
          4.10% 5/1/23 15,000 14,288
Barrick North America Finance
          4.40% 5/30/21 5,000 5,032
# Builders FirstSource 144A
          7.625% 6/1/21 280,000 282,100
# Cemex Espana Luxembourg
          144A 9.25% 5/12/20 309,000 332,948
CF Industries
          4.95% 6/1/43 5,000 4,970
          6.875% 5/1/18 25,000 30,069
Dow Chemical 8.55% 5/15/19 34,000 45,294
# Essar Steel Algoma 144A
          9.375% 3/15/15 205,000 191,675
*# FMG Resources August 2006 144A
          6.875% 2/1/18 115,000 117,444
          6.875% 4/1/22 275,000 278,781
# Freeport-McMoRan Copper &
          Gold 144A 3.875% 3/15/23 15,000 14,629
Georgia-Pacific 8.00% 1/15/24 25,000 34,111
# Glencore Funding 144A
          2.50% 1/15/19 15,000 14,737
HD Supply
        #144A 7.50% 7/15/20 400,000 424,999
          10.50% 1/15/21 55,000 57,269
Headwaters 7.625% 4/1/19 310,000 334,025
# Inmet Mining 144A 8.75% 6/1/20 300,000 324,750
International Paper
          6.00% 11/15/41 10,000 11,598
          9.375% 5/15/19 5,000 6,785
# JMC Steel Group 144A
          8.25% 3/15/18 385,000 391,738
# Kinove German Bondco 144A
          9.625% 6/15/18 320,000 357,600
# MacDermid 144A 9.50% 4/15/17 396,000 410,603
# Masonite International 144A
          8.25% 4/15/21 370,000 412,550
# New Gold 144A 6.25% 11/15/22 380,000 393,300
Norcraft 10.50% 12/15/15 186,000 194,603
Nortek 8.50% 4/15/21 320,000 352,000
Peabody Energy 6.25% 11/15/21 300,000 315,000
# Perstorp Holding 144A
          8.75% 5/15/17 400,000 415,000
Praxair 1.25% 11/7/18 5,000 4,914
Rockwood Specialties Group
          4.625% 10/15/20 360,000 368,550
# Ryerson 144A
          9.00% 10/15/17 245,000 265,519
          11.25% 10/15/18 105,000 112,088

8


Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Basic Industry (continued)
# Sappi Papier Holding 144A
          8.375% 6/15/19 USD 405,000 $ 448,030
# Taminco Global Chemical 144A
          9.75% 3/31/20 290,000 329,875
# TPC Group 144A
          8.75% 12/15/20 450,000 476,999
*# US Coatings Acquisition 144A
          7.375% 5/1/21 230,000 243,513
9,400,919
Brokerage – 0.03%
Jefferies Group  
            5.125% 1/20/23   10,000   10,479
          6.45% 6/8/27 5,000 5,575
          6.50% 1/20/43   5,000 5,352
Lazard Group 6.85% 6/15/17 34,000 38,986
60,392
Capital Goods – 2.84%
Anixter 10.00% 3/15/14 15,000 15,923
# Ardagh Packaging Finance
          144A 7.00% 11/15/20 360,000 369,900
Berry Plastics 9.75% 1/15/21 217,000 251,720
# BOE Intermediate Holding PIK
          144A 9.00% 11/1/17 145,000 143,550
# BOE Merger PIK 144A
          9.50% 11/1/17 375,000 392,813
# Consolidated Container 144A
          10.125% 7/15/20 385,000 436,013
# Crown Americas 144A
          4.50% 1/15/23 35,000 34,388
# GenCorp 144A 7.125% 3/15/21 175,000 188,125
Kratos Defense & Security
          Solutions 10.00% 6/1/17 275,000 301,125
# Milacron 144A 7.75% 2/15/21 375,000 395,625
Mueller Water Products
          7.375% 6/1/17 300,000 309,000
Northrop Grumman
          3.25% 8/1/23 15,000 14,826
Reynolds Group Issuer
          5.75% 10/15/20 175,000 178,063
          9.875% 8/15/19 555,000 607,030
# Sealed Air 144A
          8.125% 9/15/19 70,000 79,625
          8.375% 9/15/21 475,000 550,999
# Silver II Borrower 144A
          7.75% 12/15/20 365,000 380,513
# Votorantim Cimentos 144A
          7.25% 4/5/41 1,118,000 1,201,849
5,851,087
Communications – 3.54%
American Tower 5.90% 11/1/21 15,000 17,347
# American Tower Trust I 144A
          1.551% 3/15/18 5,000 4,989
          3.07% 3/15/23 20,000 19,774
# CC Holdings 144A
          3.849% 4/15/23 5,000 4,993
CenturyLink 5.80% 3/15/22 210,000 215,775
# Clearwire Communications
          144A 12.00% 12/1/15 375,000 401,738
# Columbus International 144A
          11.50% 11/20/14 270,000 301,725
# Cox Communications 144A
          3.25% 12/15/22 20,000 19,701
# Crown Castle Towers 144A
          4.883% 8/15/20 30,000 33,374
# Digicel Group 144A
          8.25% 9/30/20 530,000 567,099
Equinix
          4.875% 4/1/20 132,000 134,970
          5.375% 4/1/23 263,000 272,863
Hughes Satellite Systems
          7.625% 6/15/21 280,000 314,300
# Intelsat Jackson Holdings 144A
          5.50% 8/1/23 85,000 83,513
# Intelsat Luxembourg 144A
          7.75% 6/1/21 445,000 469,475
          8.125% 6/1/23 490,000 526,138
Interpublic Group
          3.75% 2/15/23 10,000 9,796
          4.00% 3/15/22 15,000 15,093
Level 3 Communications
        *8.875% 6/1/19 190,000 206,863
          11.875% 2/1/19 280,000 322,700
Level 3 Financing 7.00% 6/1/20 245,000 258,781
# MetroPCS Wireless 144A
          6.25% 4/1/21 180,000 189,225
Qwest 6.75% 12/1/21 10,000 11,508
# SES 144A 3.60% 4/4/23 20,000 20,066
Sprint Capital 8.75% 3/15/32 178,000 208,260
Sprint Nextel
          8.375% 8/15/17 475,000 549,813
          9.125% 3/1/17 125,000 146,875
Time Warner Cable 8.25% 4/1/19 20,000 25,791
# VimpelCom 144A 7.748% 2/2/21 275,000 304,631
# Vivendi 144A
          3.45% 1/12/18 5,000 5,159
          6.625% 4/4/18 10,000 11,765
Vodafone Group 2.95% 2/19/23 10,000 9,659
# Wind Acquisition Finance 144A
          7.25% 2/15/18 535,000 560,412
          11.75% 7/15/17 190,000 200,925
Windstream 7.50% 4/1/23 235,000 247,925
Zayo Group 10.125% 7/1/20 530,000 618,774
7,311,795

(continues)       9


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Consumer Cyclical – 2.84%
ADT 4.125% 6/15/23 USD 5,000 $ 5,004
Amazon.com 2.50% 11/29/22 20,000 19,013
# BC Mountain 144A
          7.00% 2/1/21 110,000 116,875
# Bon-Ton Department Stores
          144A 8.00% 6/15/21 395,000 407,344
Brinker International
          2.60% 5/15/18 5,000 5,009
          3.875% 5/15/23 5,000 4,915
Burlington Coat Factory
          Warehouse 10.00% 2/15/19 325,000 364,406
# CDR DB Sub 144A 7.75% 10/15/20   450,000   471,375
CKE Restaurants 11.375% 7/15/18 21,000 21,971
#* Claire’s Stores 144A 7.75% 6/1/20 110,000 111,925
Dave & Buster’s 11.00% 6/1/18 330,000 372,075
#^ Dave & Buster’s Entertainment
          144A 10.004% 2/15/16 510,000 397,800
Dollar General
          1.875% 4/15/18 5,000 4,980
          3.25% 4/15/23 5,000 4,862
eBay 4.00% 7/15/42   10,000 8,897
Express 8.75% 3/1/18 118,000 128,178
Historic TW 6.875% 6/15/18 25,000 30,666
Host Hotels & Resorts
          4.75% 3/1/23 20,000 21,199
# Landry’s 144A 9.375% 5/1/20 455,000 497,087
# LKQ 144A 4.75% 5/15/23 405,000 405,000
Michaels Stores
          11.375% 11/1/16 61,000 63,974
Pantry 8.375% 8/1/20 405,000 444,994
# Party City Holdings 144A
          8.875% 8/1/20 435,000 490,462
* Quiksilver 6.875% 4/15/15 250,000 250,315
# QVC 144A 4.375% 3/15/23 15,000 15,106
Rite Aid 9.25% 3/15/20 385,000 436,494
# Tempur-Pedic International
          144A 6.875% 12/15/20 285,000 308,869
Western Union 3.65% 8/22/18 10,000 10,448
# Wok Acquisition 144A
          10.25% 6/30/20 375,000 421,875
Wyndham Worldwide
          4.25% 3/1/22 5,000 5,095
          5.625% 3/1/21 10,000 11,012
5,857,225
Consumer Non-Cyclical – 1.53%
# Alphabet Holding PIK 144A
          7.75% 11/1/17 145,000 150,075
B&G Foods 4.625% 6/1/21 215,000 215,000
Boston Scientific 6.00% 1/15/20 10,000 11,666
CareFusion 6.375% 8/1/19 65,000 76,799
Celgene 3.95% 10/15/20 15,000 16,001
Constellation Brands
          3.75% 5/1/21 65,000 63,538
          6.00% 5/1/22 290,000 326,974
Covidien International Finance
          4.20% 6/15/20 20,000 22,091
Del Monte 7.625% 2/15/19 300,000 312,375
Energizer Holdings
          4.70% 5/24/22 20,000 20,992
#* ESAL 144A 6.25% 2/5/23 400,000 398,999
# First Quality Finance 144A
          4.625% 5/15/21 225,000 220,500
# Heineken 144A 3.40% 4/1/22 15,000 15,281
# Heinz (H.J.) Finance 144A
          7.125% 8/1/39 175,000 198,188
# JBS USA 144A 8.25% 2/1/20 290,000 319,724
Laboratory Corp. of America
          Holdings 2.20% 8/23/17 15,000 15,071
Merck 2.80% 5/18/23 5,000 4,908
Molson Coors Brewing
          5.00% 5/1/42 10,000 10,312
# Mylan 144A 3.125% 1/15/23 10,000 9,550
Newell Rubbermaid
          2.05% 12/1/17 5,000 4,989
Quest Diagnostics 4.70% 4/1/21 5,000 5,342
Smithfield Foods 6.625% 8/15/22 125,000 142,500
# Spectrum Brands Escrow 144A
          6.375% 11/15/20 75,000 80,719
          6.625% 11/15/22 280,000 303,100
St. Jude Medical 3.25% 4/15/23 15,000 14,769
Visant 10.00% 10/1/17 145,000 139,563
Zimmer Holdings
          4.625% 11/30/19 30,000 33,679
# Zoetis 144A 3.25% 2/1/23 15,000 14,871
3,147,576
Energy – 6.97%
AmeriGas Finance 7.00% 5/20/22 300,000 327,000
Antero Resources Finance
          6.00% 12/1/20 415,000 433,675
* Apache 2.625% 1/15/23 10,000 9,587
# Athlon Holdings 144A
          7.375% 4/15/21 280,000 291,900
Calumet Specialty Products
          Partners 9.375% 5/1/19 720,000 804,599
Chaparral Energy
          7.625% 11/15/22 180,000 195,300
          8.25% 9/1/21 160,000 177,600
# CHC Helicopter 144A
          9.375% 6/1/21 210,000 216,038
Chesapeake Energy
          5.375% 6/15/21 80,000 81,600
          5.75% 3/15/23 120,000 125,100
          6.125% 2/15/21 55,000 60,225
          6.625% 8/15/20 335,000 374,363
Comstock Resources
          7.75% 4/1/19 365,000 387,813
Copano Energy 7.125% 4/1/21 65,000 75,238

10


Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Energy (continued)
Crosstex Energy
          7.125% 6/1/22 USD 135,000 $ 145,125
          8.875% 2/15/18 210,000 226,800
# Drill Rigs Holdings 144A
          6.50% 10/1/17 390,000 399,750
# Exterran Partners 144A
          6.00% 4/1/21 395,000   406,850
# Gazprom 144A 3.85% 2/6/20 500,000 492,364
# Genesis Energy 144A
          5.75% 2/15/21 440,000 449,625
# Halcon Resources 144A
          8.875% 5/15/21 425,000 434,563
# Hercules Offshore 144A  
          10.50% 10/15/17 547,000 590,759
# Hilcorp Energy I 144A
          8.00% 2/15/20 271,000 300,810
Kodiak Oil & Gas
      *#144A 5.50% 1/15/21 10,000 10,388
          8.125% 12/1/19 430,000 485,899
Laredo Petroleum
          7.375% 5/1/22 75,000 82,875
          9.50% 2/15/19 325,000 369,688
Linn Energy  
          6.50% 5/15/19 60,000 61,350
          8.625% 4/15/20 241,000 265,100
MarkWest Energy Partners
          6.50% 8/15/21 174,000 189,225
# Midstates Petroleum 144A  
          9.25% 6/1/21 335,000 333,744
Newfield Exploration
          5.625% 7/1/24 10,000 10,550
Noble Holding International
          3.95% 3/15/22 10,000 10,182
          5.25% 3/15/42 5,000 4,884
Northern Oil & Gas
          8.00% 6/1/20 370,000 386,650
# Offshore Group Investment
          144A 7.125% 4/1/23 180,000 186,750
# PDC Energy 144A
          7.75% 10/15/22 385,000 421,575
Pemex Project Funding Master
          Trust 6.625% 6/15/35 1,000,000 1,149,999
Petrobras International Finance
          5.375% 1/27/21 39,000 41,431
# Petroleos Mexicanos 144A
          5.50% 6/27/44 512,000 503,039
Pioneer Energy Services
          9.875% 3/15/18 361,000 395,295
Pride International
          6.875% 8/15/20 20,000 24,783
Range Resources 5.00% 8/15/22 300,000 306,000
# Regency Energy Partners 144A
          4.50% 11/1/23 80,000 79,400
Rosetta Resources
          5.625% 5/1/21 250,000 250,938
# Samson Investment 144A
          9.75% 2/15/20 440,000 460,900
SandRidge Energy
          7.50% 3/15/21 155,000 160,425
          8.125% 10/15/22 395,000 423,638
        *8.75% 1/15/20 10,000 10,800
Statoil
          2.65% 1/15/24 5,000 4,787
          3.95% 5/15/43 5,000 4,708
Talisman Energy 5.50% 5/15/42 25,000 25,739
# Targa Resources Partners 144A
          4.25% 11/15/23 185,000 177,138
TNK-BP Finance
          7.875% 3/13/18 400,000 472,999
Weatherford International
          4.50% 4/15/22 5,000 5,153
          9.625% 3/1/19 15,000 19,519
# Woodside Finance 144A
          8.125% 3/1/14 15,000 15,757
          8.75% 3/1/19 15,000 19,765
14,377,757
Financials – 0.83%
E Trade Financial 6.375% 11/15/19 390,000 411,450
General Electric Capital
          2.10% 12/11/19 35,000 34,934
          6.00% 8/7/19 50,000 60,073
#• ILFC E-Capital Trust II 144A
          6.25% 12/21/65 455,000 429,975
International Lease Finance
          4.625% 4/15/21 180,000 178,988
          6.25% 5/15/19 12,000 13,170
          8.75% 3/15/17 20,000 23,775
# Nuveen Investments 144A
          9.50% 10/15/20 455,000 490,263
# Provident Funding Associates
          144A 6.75% 6/15/21 75,000 76,875
1,719,503
Healthcare – 2.45%
Air Medical Group Holdings
          9.25% 11/1/18 257,000 283,343
# Alere 144A
          6.50% 6/15/20 220,000 221,925
          7.25% 7/1/18 195,000 212,550
# Biomet 144A 6.50% 10/1/20 390,000 396,825
# CDRT Holding PIK 144A
          9.25% 10/1/17 190,000 196,175
Community Health Systems
          7.125% 7/15/20 290,000 318,638
          8.00% 11/15/19 265,000 292,825
DaVita HealthCare Partners
          6.625% 11/1/20 300,000 321,750

(continues)       11


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

          Principal Value
Amount°       (U.S. $)
Corporate Bonds (continued)      
Healthcare (continued)
Immucor 11.125% 8/15/19 USD 275,000 $ 312,813
Kinetic Concepts
            10.50% 11/1/18 250,000 271,875
        *12.50% 11/1/19 215,000 223,600
# MultiPlan 144A 9.875% 9/1/18 428,000 481,499
Radnet Management
          10.375% 4/1/18 209,000 225,459
# Sky Growth Acquisition
          Holdings 144A
          7.375% 10/15/20 590,000 629,824
# STHI Holding 144A 8.00% 3/15/18 275,000 301,125
# Truven Health Analytics 144A  
          10.625% 6/1/20 125,000 141,875
# VPI Escrow 144A 6.375% 10/15/20 220,000   232,100
5,064,201
Industrials – 0.02%  
# URS 144A 4.10% 4/1/17 10,000 10,374
Yale University 2.90% 10/15/14 22,000 22,747
    33,121
Insurance – 1.68%
American International Group
          6.40% 12/15/20 15,000 18,160
        •8.175% 5/15/58 435,000 572,025
• Chubb 6.375% 3/29/67 15,000 16,950
# Highmark 144A
          4.75% 5/15/21 5,000 4,885
          6.125% 5/15/41 5,000 4,657
# Hub International 144A
          8.125% 10/15/18 450,000 486,000
*• ING Groep 5.775% 12/29/49 725,000 710,499
# ING US 144A
          3.15% 2/15/18 5,000 5,097
          5.75% 7/15/22 5,000 5,590
# Liberty Mutual Group 144A
          4.95% 5/1/22 10,000 10,913
          6.50% 5/1/42 10,000 11,733
         •7.00% 3/15/37 385,000 404,250
MetLife 6.40% 12/15/36 100,000 113,500
# Onex USI Acquisition 144A
          7.75% 1/15/21 395,000 407,838
Prudential Financial
          3.875% 1/14/15 35,000 36,685
WellPoint 3.30% 1/15/23 20,000 19,893
• XL Group 6.50% 12/29/49 625,000 629,687
3,458,362
Media – 3.20%
AMC Networks 4.75% 12/15/22 200,000 200,500
CCO Holdings 5.25% 9/30/22 385,000 386,925
# Cequel Communications
          Holdings 1 144A
          6.375% 9/15/20 300,000 315,000
Clear Channel Communications
          9.00% 3/1/21 655,000 653,362
Clear Channel Worldwide
          Holdings 7.625% 3/15/20 390,000 416,175
# Cogeco Cable 144A
          4.875% 5/1/20 190,000 190,000
CSC Holdings 6.75% 11/15/21 265,000 298,125
DISH DBS 5.00% 3/15/23 560,000 532,000
# Griffey Intermediate 144A
          7.00% 10/15/20 385,000 391,738
# Lynx II 144A 6.375% 4/15/23 400,000 419,000
# MDC Partners 144A
          6.75% 4/1/20 255,000 262,013
# Nara Cable Funding 144A
          8.875% 12/1/18 400,000 421,000
# Nexstar Broadcasting 144A
          6.875% 11/15/20 385,000 411,950
# Ono Finance II 144A
          10.875% 7/15/19 240,000 255,000
Satelites Mexicanos
          9.50% 5/15/17 160,000 173,600
# Sirius XM Radio 144A
          4.625% 5/15/23 150,000 144,375
# Univision Communications
          144A 8.50% 5/15/21 735,000 799,312
# UPCB Finance VI 144A
          6.875% 1/15/22 300,000 325,500
6,595,575
Natural Gas – 0.13%
#• DCP Midstream 144A
          5.85% 5/21/43 15,000 15,113
El Paso Pipeline Partners
          Operating 6.50% 4/1/20 15,000 18,076
• Enbridge Energy Partners
          8.05% 10/1/37 25,000 29,166
Energy Transfer Partners
          9.70% 3/15/19 7,000 9,347
Enterprise Products Operating
         •7.034% 1/15/68 25,000 29,029
          9.75% 1/31/14 5,000 5,295
# GDF Suez 144A
          2.875% 10/10/22 10,000 9,836
Kinder Morgan Energy Partners
          9.00% 2/1/19 20,000 26,442
Nisource Finance
          3.85% 2/15/23 5,000 5,105
          4.80% 2/15/44 15,000 14,672
          5.80% 2/1/42 5,000 5,553
Plains All American Pipeline
          8.75% 5/1/19 10,000 13,372
Spectra Energy Capital
          3.30% 3/15/23 5,000 4,883
Sunoco Logistics Partners
          Operations 3.45% 1/15/23 20,000 19,385
• TransCanada Pipelines
          6.35% 5/15/67 30,000 32,135
Williams Partners 7.25% 2/1/17 20,000 23,799
261,208

12


Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Real Estate Investment Trusts – 0.08%
Alexandria Real Estate Equities
          4.60% 4/1/22 USD 15,000 $ 16,058
BRE Properties 3.375% 1/15/23 10,000 9,735
# Corporate Office Properties
          144A 3.60% 5/15/23 5,000 4,823
Developers Diversified Realty
            4.75% 4/15/18 5,000 5,533
          7.50% 4/1/17 5,000 5,944
          7.875% 9/1/20 20,000 25,499
Digital Realty Trust
          5.25% 3/15/21 20,000 22,270
          5.875% 2/1/20 10,000 11,569
Duke Realty 3.625% 4/15/23   5,000   4,894
National Retail Properties  
          3.30% 4/15/23 5,000 4,862
          3.80% 10/15/22 5,000   5,138
Regency Centers 5.875% 6/15/17 20,000 22,743
UDR 4.625% 1/10/22 15,000 16,343
# WEA Finance 144A
          4.625% 5/10/21 10,000 11,002
Weingarten Realty Investors
          3.50% 4/15/23 10,000 9,767
176,180
Services – 4.16%
# Algeco Scotsman Global
          Finance 144A
          8.50% 10/15/18 175,000 182,875
          10.75% 10/15/19 585,000 582,074
Ameristar Casinos 7.50% 4/15/21 285,000 312,075
# Avis Budget Car Rental 144A
          5.50% 4/1/23 350,000 355,250
*# Beazer Homes USA 144A
          7.25% 2/1/23 110,000 117,013
Caesars Entertainment
          Operating 8.50% 2/15/20 380,000 363,138
# Carlson Wagonlit 144A
          6.875% 6/15/19 290,000 306,675
# DigitalGlobe 144A 5.25% 2/1/21 325,000 329,063
# Geo Group 144A 5.125% 4/1/23 330,000 337,425
H&E Equipment Services
          7.00% 9/1/22 350,000 379,750
M/I Homes 8.625% 11/15/18 486,000 539,459
*# Mattamy Group 144A
          6.50% 11/15/20 390,000 390,975
Meritage Homes 7.00% 4/1/22 60,000 67,650
MGM Resorts International
        #144A 6.75% 10/1/20 215,000 234,888
          7.75% 3/15/22 180,000 206,100
          11.375% 3/1/18 473,000 614,899
NCL
        #144A 5.00% 2/15/18 126,000 129,150
          9.50% 11/15/18 35,000 39,638
PHH
        *7.375% 9/1/19 205,000 233,700
          9.25% 3/1/16 196,000 228,830
Pinnacle Entertainment
          7.75% 4/1/22 125,000 136,875
          8.75% 5/15/20 58,000 63,583
RSC Equipment Rental
          8.25% 2/1/21 255,000 283,688
Seven Seas Cruises
          9.125% 5/15/19 305,000 334,738
Swift Services Holdings
          10.00% 11/15/18 370,000 424,574
# Taylor Morrison Communities
          144A 7.75% 4/15/20 277,000 310,240
Toll Brothers Finance
          4.375% 4/15/23 430,000 436,449
United Rentals North America
          6.125% 6/15/23 70,000 73,675
          7.625% 4/15/22 85,000 94,563
# Watco 144A 6.375% 4/1/23 185,000 195,638
# Wynn Las Vegas 144A
          4.25% 5/30/23 280,000 272,650
8,577,300
Technology – 2.24%
Apple 2.40% 5/3/23 20,000 19,119
# Avaya 144A 10.50% 3/1/21 237,000 200,265
CDW
          8.50% 4/1/19 225,000 250,031
          12.535% 10/12/17 171,000 184,680
# CommScope Holdings PIK
          144A 6.625% 6/1/20 75,000 74,438
Fidelity National Information
          Services 3.50% 4/15/23 10,000 9,647
First Data
        #144A 8.25% 1/15/21 375,000 399,375
        *11.25% 3/31/16 400,000 404,000
        #144A 11.25% 1/15/21 260,000 267,150
      *#144A 11.75% 8/15/21 180,000 174,600
GXS Worldwide 9.75% 6/15/15 287,000 294,893
iGate 9.00% 5/1/16 105,000 113,400
Infor US 9.375% 4/1/19 445,000 503,962
j2 Global 8.00% 8/1/20 585,000 631,799
MagnaChip Semiconductor
          10.50% 4/15/18 156,000 173,550
Microsoft 2.125% 11/15/22 10,000 9,495
National Semiconductor
          6.60% 6/15/17 20,000 23,937
NetApp
          2.00% 12/15/17 5,000 4,948
          3.25% 12/15/22 10,000 9,568
Oracle 5.75% 4/15/18 5,000 5,961
# Seagate HDD Cayman 144A
          4.75% 6/1/23 420,000 409,500
Symantec 4.20% 9/15/20 5,000 5,294
Texas Instruments 2.25% 5/1/23 5,000 4,691
Total System Services 3.75% 6/1/23 15,000 14,724

(continues)       13


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

Principal Value
          Amount°       (U.S. $)
Corporate Bonds (continued)      
Technology (continued)
# Viasystems 144A
          7.875% 5/1/19 USD 395,000   $ 424,624
Xerox 6.35% 5/15/18 10,000 11,719
4,625,370
Transportation – 0.04%  
# Brambles USA 144A
          3.95% 4/1/15 15,000 15,723
          5.35% 4/1/20 15,000 16,928
# ERAC USA Finance 144A
          5.25% 10/1/20 35,000 39,955
FedEx 4.10% 4/15/43 10,000 9,363
# Kansas City Southern de Mexico  
          144A 3.00% 5/15/23   10,000 9,644
91,613
Utilities – 1.03%
AES
          4.875% 5/15/23 205,000 201,925
          7.375% 7/1/21 295,000 346,625
          8.00% 6/1/20 64,000 77,120
Ameren Illinois 9.75% 11/15/18 45,000 62,451
# American Transmission Systems
          144A 5.25% 1/15/22 25,000 27,970
# APT Pipelines 144A
          3.875% 10/11/22 5,000 4,934
CenterPoint Energy 5.95% 2/1/17 13,000 14,895
CMS Energy 6.25% 2/1/20 5,000 6,012
Commonwealth Edison
          5.80% 3/15/18 5,000 5,921
Elwood Energy 8.159% 7/5/26 217,204 236,752
Exelon Generation 4.25% 6/15/22 25,000 25,940
• FPL Group Capital 6.35% 10/1/66 20,000 21,216
GenOn Energy 9.875% 10/15/20 390,000 442,651
Great Plains Energy
          10.00% 6/15/22 15,000 16,837
• Integrys Energy Group
          6.11% 12/1/66 15,000 15,920
Ipalco Enterprises 5.00% 5/1/18 10,000 10,800
Kansas City Power & Light
          3.15% 3/15/23 5,000 4,964
LG&E & KU Energy
          4.375% 10/1/21 20,000 21,425
Mirant Americas 8.50% 10/1/21 335,000 388,600
# Narragansett Electric 144A
          4.17% 12/10/42 5,000 4,796
• National Rural Utilities
          Cooperative Finance
          4.75% 4/30/43 10,000 10,225
NV Energy 6.25% 11/15/20 10,000 12,196
Pennsylvania Electric
          5.20% 4/1/20 25,000 28,066
• PPL Capital Funding
          6.70% 3/30/67 25,000 26,647
PPL Electric Utilities
          3.00% 9/15/21 10,000 10,307
  Public Service Oklahoma
          5.15% 12/1/19 30,000 34,346
Puget Energy 6.00% 9/1/21 5,000 5,608
• Puget Sound Energy
          6.974% 6/1/67 20,000 21,384
SCANA 4.125% 2/1/22 15,000 15,485
• Wisconsin Energy 6.25% 5/15/67 20,000 21,744
2,123,762
Total Corporate Bonds
(cost $78,226,919) 82,932,227
 
Non-Agency Asset-Backed Security – 0.01%
• Nissan Master Owner Trust
          Receivables Series 2012-A A
          0.669% 5/15/17 25,000 25,099
Total Non-Agency Asset-Backed
Security (cost $25,086) 25,099
 
Non-Agency Collateralized Mortgage Obligations – 0.11%
Citicorp Mortgage Securities
          Series 2007-1 2A1
          5.50% 1/25/22 12,899 12,960
• Citicorp Residential Mortgage
          Securities Series 2006-3 A5
          5.948% 11/25/36 100,000 96,706
• GSR Mortgage Loan Trust
          Series 2006-AR1 3A1
          2.992% 1/25/36 96,420 85,004
• MASTR ARM Trust Series
          2006-2 4A1 2.649% 2/25/36 34,445 32,719
Total Non-Agency Collateralized
Mortgage Obligations
(cost $228,457) 227,389
 
«Senior Secured Loans – 0.74%
Equipower Resources Holdings
          2nd Lien 10.00% 5/23/19 150,000 154,500
Hostess Brands 1st Lien 6.75% 3/12/20 325,000 333,125
Panda Temple Power II Tranche B
          1st Lien 7.25% 3/28/19 320,000 326,400
Penney (J.C.) 1st Lien 6.00% 5/21/18 205,000 208,203
Rite Aid 2nd Lien 5.75% 8/3/20 198,000 205,301
Smart & Final 2nd Lien
          10.50% 11/8/20 294,359 302,454
Total Senior Secured Loans
(cost $1,499,842) 1,529,983

14


Principal Value
          Amount°       (U.S. $)
ΔSovereign Bonds – 4.14%      
Brazil – 2.19%
Brazil Notas do Tesouro
          Nacional Serie F
          10.00% 1/1/17 BRL   9,600,000 $ 4,517,129
4,517,129
Indonesia – 0.78%
Indonesia Government  
          International Bond
          6.625% 2/17/37 USD   1,350,000   1,611,563
1,611,563
Mexico – 0.41%
Mexican Bonos  
          7.50% 6/3/27 MXN 533,000 48,680
          7.75% 5/29/31 MXN   8,720,000 798,671
847,351
Panama – 0.44%
Panama Government
          International Bond
          6.70% 1/26/36 USD 700,000 897,750
897,750
Poland – 0.32%
Poland Government Bonds  
          4.00% 10/25/23 PLN 624,000 196,694
          5.75% 10/25/21 PLN   1,318,000 468,067
664,761
Total Sovereign Bonds
(cost $9,291,109) 8,538,554
 
U.S. Treasury Obligations – 0.46%
U.S. Treasury Bond
          2.75% 11/15/42 USD 115,000 102,961
U.S. Treasury Notes
          1.00% 5/31/18 120,000 119,719
        *1.75% 5/15/23 750,000 722,695
Total U.S. Treasury Obligations
(cost $971,576) 945,375
 
Leveraged Non-Recourse Security – 0.00%
t@#JPMorgan Fixed Income Pass
          Through Trust Series 2007-B
          144A 0.00% 1/15/87 500,000 0
Total Leveraged Non-Recourse
Security (cost $425,000) 0
 
Number of
Shares
Limited Partnerships – 0.36%
Brookfield Infrastructure Partners 5,400 196,128
* Lehigh Gas Partners 22,400 555,744
Total Limited Partnerships
(cost $607,629) 751,872
 
Preferred Stock – 0.79%
Alabama Power 5.625% 410 10,640
# Ally Financial 144A 7.00% 600 588,262
BB&T 5.85% 225 5,715
Freddie Mac 6.02% 40,000 202,000
• GMAC Capital Trust I 8.125% 12,000 319,440
National Retail Properties 5.70% 200 4,944
* Public Storage 5.20% 200 4,972
* Regions Financial 6.375% 16,000 405,280
Vornado RealtyTrust 6.625% 3,700 93,906
Total Preferred Stock
(cost $2,275,356) 1,635,159
 
Principal
Amount°
Short-Term Investments – 6.44%
≠Discount Notes – 2.50%
Fannie Mae 0.06% 9/16/13 USD 1,111,736 1,111,606
Federal Home Loan Bank
          0.045% 7/24/13 510,897 510,883
          0.05% 7/26/13 294,277 294,268
          0.06% 7/2/13 1,084,824 1,084,807
            0.06% 8/14/13 1,228,774 1,228,700
          0.06% 8/16/13 403,609 403,584
          0.06% 8/21/13 510,897 510,863
5,144,711
Repurchase Agreements – 3.94%
Bank of America 0.03%, dated
          5/31/13, to be repurchased
          on 6/3/13, repurchase price
          $1,648,910 (collateralized
          by U.S. government
          obligations 0.75%-3.625%
          6/15/14-8/15/19; market
          value $1,681,884) 1,648,906 1,648,906
BNP Paribas 0.05%, dated
          5/31/13, to be repurchased
          on 6/3/13, repurchase price
          $6,487,121 (collateralized
          by U.S. government
          obligations 0.00%-1.75%
          8/29/13-1/31/18; market
          value $6,616,836) 6,487,094 6,487,094
8,136,000
Total Short-Term Investments
(cost $13,280,431) 13,280,711
Total Value of Securities Before Securities
Lending Collateral – 130.88%
(cost $246,204,991) 270,024,571

(continues)       15


Statement of net assets

Delaware Enhanced Global Dividend and Income Fund

Number of Value
      Shares       (U.S. $)
**Securities Lending Collateral – 7.02%
Investment Companies
          Delaware Investments
          Collateral Fund No.1 14,477,368 $ 14,477,368
     †@Mellon GSL Reinvestment Trust II 278,673 0
Total Securities Lending      
          Collateral (cost $14,756,041) 14,477,368
Total Value of Securities – 137.90%  
          (cost $260,961,032) 284,501,939 ©
 
**Obligation to Return Securities  
          Lending Collateral – (7.15%) (14,756,041 )
Borrowing Under Line of Credit – (31.86%) (65,725,000 )
«Receivables and Other Assets
          Net of Other Liabilities – 1.11% 2,288,975
Net Assets Applicable to 15,863,616
          Shares Outstanding; Equivalent to
          $13.01 Per Share – 100.00% $ 206,309,873
 
Components of Net Assets at May 31, 2013:
Shares of beneficial interest
          (unlimited authorization – no par) $ 240,349,384
Distributions in excess of net investment income (3,481,021 )
Accumulated net realized loss on investments (54,074,128 )
Net unrealized appreciation of investments
          and derivatives 23,515,638
Total net assets $ 206,309,873

v Securities have been classified by type of business. Classification by country of origin has been presented on page 2 in “Security type/sector and country allocations.”
† Non income producing security.
* Fully or partially on loan.
= Security is being fair valued in accordance with the Fund’s fair valuation policy. At May 31, 2013, the aggregate value of fair valued securities was $0, which represented 0.00% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
# Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At May 31, 2013, the aggregate value of Rule 144A securities was $48,679,769, which represented 23.60% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
° Principal amount shown is stated in the currency in which each security is denominated.
• Variable rate security. The rate shown is the rate as of May 31, 2013. Interest rates reset periodically.
w Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes.
Φ Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at May 31, 2013.
@ Illiquid security. At May 31, 2013, the aggregate value of illiquid securities was $0, which represented 0.00% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
^ Zero Coupon Security. The rate shown is the yield at the time of purchase.
« Senior secured loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior secured loans may be subject to restrictions on resale. Stated rate in effect at May 31, 2013.
Δ Securities have been classified by country of origin.
≠ The rate shown is the effective yield at the time of purchase.
** See Note 7 in “Notes to financial statements” for additional information on securities lending collateral and non-cash collateral.
© Includes $14,563,845 of securities loaned.
« Includes foreign currency valued at $5,937 with a cost of $6,634.

The following foreign currency exchange contracts were outstanding at May 31, 2013:1

Unrealized
Contracts to Settlement   Appreciation
Counterparty         Receive (Deliver)       In Exchange For       Date       (Depreciation)
MNB GBP (4,976 )   USD 7,534 6/3/13 $ (27 )
MNB   GBP (1,431 ) USD 2,163 6/4/13 (11 )
MNB GBP (8,674 ) USD 13,215 6/5/13   35
MNB JPY    (16,413,649 ) USD    161,902   6/3/13   (1,558 )
MNB JPY (17,520,863 ) USD 172,178 6/4/13 (2,309 )
MNB SGD (1,013 ) USD 799 6/3/13 (2 )
      $ (3,872 )    

The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The foreign currency exchange contracts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.

1See Note 6 in “Notes to financial statements.”

Summary of Abbreviations:
ADR — American Depositary Receipt
ARM — Adjustable Rate Mortgage
BRL — Brazilian Real
FDR — Fiduciary Deposit Receipt
GBP — British Pound Sterling
GNMA — Government National Mortgage Association
JPY — Japanese Yen
MASTR — Mortgage Asset Securitization Transactions, Inc.
MNB — Mellon National Bank
MXN — Mexican Peso
PIK — Pay-in-kind
PLN — Polish Zloty
REIT — Real Estate Investment Trust
REMIC — Real Estate Mortgage Investment Conduit
S.F. — Single Family
SGD — Singapore Dollar
TBA — To be announced
USD — United States Dollar
yr — Year

See accompanying notes, which are an integral part of the financial statements.

16


Statement of operations

Delaware Enhanced Global Dividend and Income Fund
Six Months Ended May 31, 2013 (Unaudited)

Investment Income:            
       Interest $ 4,303,929
       Dividends 2,604,035
       Securities lending income 64,939  
       Foreign tax withheld (169,649 ) $ 6,803,254
 
Expenses:
       Management fees 1,269,514
       Reports to shareholders 84,947
       Accounting and administration expenses 51,796  
       Dividend disbursing and transfer agent fees and expenses 35,376
       Legal fees 26,844
       Custodian fees 24,039
       Audit and tax 11,165  
       Pricing fees   9,119  
       NYSE fees 8,271
       Dues and services   6,156
       Trustee’s fees 5,031
       Insurance fees 1,835  
       Consulting fees 1,037
       Leverage expenses 1,006
       Registration fees 769
       Trustees’ expenses 346
       Total operating expenses (before interest expense) 1,537,251
       Interest expense 376,446
       Total operating expenses (after interest expense)   1,913,697
Net Investment Income 4,889,557
 
Net Realized and Unrealized Gain (Loss):
       Net realized gain (loss) on:
              Investments 6,796,411
              Foreign currencies (155,462 )
              Foreign currency exchange contracts (13,607 )
              Options written 135,957
              Swap contracts (4,572 )
       Net realized gain 6,758,727
       Net change in unrealized appreciation (depreciation) of:
              Investments 11,129,696
              Foreign currencies 71,136
              Foreign currency exchange contracts (3,093 )
       Net change in unrealized appreciation (depreciation) 11,197,739
Net Realized and Unrealized Gain 17,956,466
 
Net Increase in Net Assets Resulting from Operations $ 22,846,023

See accompanying notes, which are an integral part of the financial statements.

17


Statements of changes in net assets

Delaware Enhanced Global Dividend and Income Fund

Six Months Year
Ended Ended
      5/31/13       11/30/12
(Unaudited)
Increase in Net Assets from Operations:
       Net investment income   $ 4,889,557     $ 8,814,467
       Net realized gain   6,758,727   448,599  
       Net change in unrealized appreciation (depreciation) 11,197,739 19,380,386
       Net increase in net assets resulting from operations 22,846,023 28,643,452
 
Dividends and Distributions to Shareholders from:
       Net investment income (7,138,627 ) (9,927,316 )
       Return of capital — (8,242,639 )
  (7,138,627 ) (18,169,955 )
 
Capital Share Transactions:
       Cost of shares reinvested1 — 714,620
       Increase in net assets derived from capital share transactions — 714,620
 
Net Increase in Net Assets 15,707,396 11,188,117
 
Net Assets:
       Beginning of period 190,602,477 179,414,360
       End of period (including distributions in excess of net investment income of $3,481,021
              and $1,231,951, respectively) $ 206,309,873 $ 190,602,477

1 See Note 4 in “Notes to financial statements.”
 
See accompanying notes, which are integral part of the financial statements.

18


Statement of cash flows

Delaware Enhanced Global Dividend and Income Fund
Six Months Ended May 31, 2013 (Unaudited)

Net Cash (Including Foreign Currency) Provided by (Used For) Operating Activities:      
Net increase in net assets resulting from operations $ 22,846,023
 
       Adjustments to reconcile net increase in net assets from
              operations to cash provided by operating activities:
              Amortization of premium and discount on investments purchased (29,237 )
              Purchase of investment securities     (74,257,377 )
              Proceeds from disposition of investment securities 86,617,205
              Proceeds of short-term investment securities, net (6,579,493 )
              Premiums received for options written 163,972
              Premiums paid to close options written (28,015 )
              Net realized gain   (6,861,201 )
              Net change in net unrealized appreciation (depreciation) (11,197,739 )
              Increase in receivable for investments sold   (971,791 )
              Decrease in interest and dividends receivable 21,429
              Decrease in payable for investments purchased (2,144,595 )
              Decrease in interest expense payable (169,433 )
              Increase in accrued expenses and other liabilities 27,945
       Total adjustments (15,408,330 )
Net cash provided by operating activities 7,437,693
 
Cash Flows Used for Financing Activities:
       Cash dividends and distributions paid (7,138,627 )
Net cash used for financing activities (7,138,627 )
Effect of exchange rates on cash (5,877 )
Net increase in cash 293,189
Cash at beginning of period (732,039 )
Cash at end of period $ (438,850 )
 
Cash paid for interest expense for leverage $ 545,879

See accompanying notes, which are an integral part of the financial statements.

19


Financial highlights

Delaware Enhanced Global Dividend and Income Fund

 

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months
Ended Year Ended
    5/31/131         11/30/12     11/30/11     11/30/10     11/30/09     11/30/08    
(Unaudited)
Net asset value, beginning of period      $12.020      $11.350 $12.320 $12.060 $8.770 $17.640
 
Income (loss) from investment operations:
Net investment income2 0.308     0.557 0.587 0.568 0.685     0.769  
Net realized and unrealized gain (loss)   1.132 1.261 (0.327 )   0.922 3.875 (7.935 )
Total from investment operations 1.440 1.818 0.260 1.490 4.560 (7.166 )
 
Less dividends and distributions from:
Net investment income (0.450 ) (0.627 ) (0.750 ) (0.918 ) (0.668 ) (0.644 )
Return of capital — (0.521 ) (0.480 ) (0.312 ) (0.602 ) (1.060 )
Total dividends and distributions   (0.450 ) (1.148 ) (1.230 ) (1.230 ) (1.270 ) (1.704 )
 
Net asset value, end of period $13.010 $12.020 $11.350 $12.320 $12.060 $8.770
 
Market value, end of period $12.370 $11.100 $10.920 $12.310 $12.290 $6.080
 
Total return based on:3
Net asset value 12.32% 16.85% 1.77% 13.13% 59.12% (42.25% )
Market value 15.65% 12.15% (2.01% ) 10.92% 134.96% (54.14% )
 
Ratios and supplemental data:
Net assets, end of period (000 omitted) $206,310 $190,602 $179,414 $160,465 $156,048 $113,400
Ratio of expenses to average net assets 1.90% 2.15% 1.98% 1.95% 2.14% 1.66%
Ratio of expenses to adjusted average net assets (before interest expense)4 1.15% 1.19% 1.28% 1.22% 1.26% 1.24%
Ratio of interest expense to adjusted average net assets4 0.28% 0.42%     0.31% 0.33%   0.35% 0.29%
Ratio of net investment income to average net assets 4.85% 4.74% 4.68% 4.68% 6.73% 5.33%
Ratio of net investment income to adjusted average net assets4 3.66% 3.57% 3.76% 3.73%   5.06% 4.91%
Portfolio turnover 29% 53% 72% 83% 88% 97%
 
Leverage Analysis:
Debt outstanding at end of period at par (000 omitted) $65,725 $65,725 $50,725 $40,000 $40,000 $40,000
Asset coverage per $1,000 of debt outstanding at end of period $4,139 $3,900 $4,537 $5,012 $4,901 $3,835

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 The average shares outstanding method has been applied for per share information.
3 Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. 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 plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.
4 Adjusted average net assets excludes debt outstanding.

See accompanying notes, which are an integral part of the financial statements.

20


Notes to financial statements

Delaware Enhanced Global Dividend and Income Fund
May 31, 2013 (Unaudited)
 

Delaware Enhanced Global Dividend and Income Fund (Fund) is organized as a Delaware statutory trust and is a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund’s shares trade on the New York Stock Exchange (NYSE) under the symbol DEX.

The primary investment objective of the Fund is to seek current income, with a secondary objective of capital appreciation.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Fund.

Security Valuation — Equity securities and Exchange-Traded Funds (ETFs), except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the NYSE on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security or ETF does not trade, then the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Debt securities and credit default swap (CDS) contracts are valued based upon valuations provided by an independent pricing service or broker/counterparty and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Swaps prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Investment company securities are valued at net asset value per share, as reported by the underlying investment company. Open-end investments companies are valued at their published net asset value. Foreign currency exchange contracts and forward foreign cross currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before the Fund values its securities, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the Fund may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).

Federal & Foreign Income Taxes — No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken for all open federal income tax years (Nov. 30, 2009 – Nov. 30, 2012), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries it invests in that may date back to the inception of the Fund.

Distributions — The Fund has implemented a managed distribution policy. Under the policy, the Fund is managed with a goal of generating as much of the distribution as possible from net investment income and short-term capital gains. The balance of the distribution will then come from long-term capital gains to the extent permitted, and if necessary, a return of capital. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in

(continues)       21


Notes to financial statements

Delaware Enhanced Global Dividend and Income Fund


1. Significant Accounting Policies (continued)

part, by the Fund’s capital loss carryovers from prior years. For federal income tax purposes, the effect of such capital loss carryovers may be to convert (to the extent of such current year gains) what would otherwise be returns of capital into distributions taxable as ordinary income. This tax effect can occur during times of extended market volatility. Under the Regulated Investment Company Modernization Act of 2010 (Act), this tax effect attributable to the Fund’s capital loss carryovers (the conversion of returns of capital into distributions taxable as ordinary income) will no longer apply to net capital losses of the Fund arising in Fund tax years beginning after Nov. 30, 2012. The actual determination of the source of the Fund’s distributions can be made only at year end.

Repurchase Agreements — The Fund may purchase certain U.S. government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Fund’s custodian or a third-party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on May 31, 2013.

To Be Announced Trades — The Fund may contract to purchase securities for a fixed price at a transaction date beyond the customary settlement period (e.g, “when issued,” “delayed delivery,” “forward commitment,” or “TBA transactions”) consistent with the Fund’s ability to manage its investment portfolio and meet redemption requests. These transactions involve a commitment by the Fund to purchase securities for a predetermined price or yield with payment and delivery taking place more than three days in the future, or after a period longer than the customary settlement period for that type of security. No interest will be earned by the Fund on such purchases until the securities are delivered; however, the market value may change prior to delivery.

Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with the Fund’s prospectus. The value of all assets and liabilities denominated in foreign currencies is translated daily into U.S. dollars at the exchange rate of such currencies against the U.S. dollar. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Fund generally bifurcates that portion of realized gains and losses on investments in debt securities, which is due to changes in foreign exchange rates from that which is due to changes in market prices of debt securities. That portion of gains (losses) is included in the statement of operations under the caption net realized gain (loss) on foreign currencies. For foreign equity securities, these changes are included in net realized and unrealized gain or loss on investments. The Fund reports certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, wher