DELAWARE IVY MUNICIPAL BOND FUND

DELAWARE IVY MUNICIPAL HIGH INCOME FUND

DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND

DELAWARE IVY CORPORATE BOND FUND

DELAWARE IVY CROSSOVER CREDIT FUND

DELAWARE IVY LIMITED-TERM BOND FUND

DELAWARE IVY STRATEGIC INCOME FUND

100 Independence,

610 Market Street

Philadelphia, Pennsylvania 19106-2354

800 523-1918

IMPORTANT SHAREHOLDER INFORMATION

This Prospectus/Proxy Statement is being provided to you in conjunction with a Special Meeting of Shareholders for the Acquired Funds listed below on June 27, 2023, at 12:30 pm ET, to consider the proposed reorganization of your Fund as described further below. The specific details and reasons for the proposed reorganizations are discussed in the enclosed combined Prospectus/Proxy Statement. Please read it carefully.

The Board of Trustees (the “Board”) of the Ivy Funds (the “Acquired Trust”) on behalf of each of the Delaware Ivy Municipal Bond Fund, Delaware Ivy Municipal High Income Fund, Delaware Ivy California Municipal High Income Fund, Delaware Ivy Corporate Bond Fund, Delaware Ivy Crossover Credit Fund, Delaware Ivy Limited-Term Bond Fund, and Delaware Ivy Strategic Income Fund (each, an “Acquired Fund” and together, the “Acquired Funds”) has approved a Plan of Reorganization, subject to shareholder approval, pursuant to which each Acquired Fund is proposed to be reorganized with and into a corresponding fund (each, an “Acquiring Fund” and together, the “Acquiring Funds”), as follows (each, a “Reorganization” and together, the “Reorganizations”), on or about September 15, 2023 (“Reorganization Date”):

After careful consideration, the Board of Trustees of Ivy Funds unanimously approved each proposed reorganization and recommends that shareholders vote “FOR” the proposal relating to the reorganization of your Fund(s).

This special meeting will be held via audioconference. While we hope you can attend this meeting, it is very important that you vote your shares at your earliest convenience. To assist with the solicitation of proxies, we have engaged Morrow Sodali Fund Solutions, a proxy solicitation firm. As the meeting date approaches, if you have not voted your shares you may receive a phone call from them urging you to vote your shares.

Your vote is important, regardless of the number of shares you own. It is important that we receive your vote no later than the time of the special meeting of shareholders on June 27, 2023. If you have more than one account registered in your name, you will receive a separate proxy card for each account. Please vote and return each proxy card that you receive, or take

advantage of the telephonic or electronic voting procedures described in the proxy card(s). Please help your Fund avoid the expense of a follow-up mailing by voting today.

The Prospectus/Proxy Statement discusses the Reorganizations and provides you with information that you should consider prior to casting your vote.  The Board of the Acquired Trust approved the Reorganizations and concluded that each Reorganization is in the best interests of each Acquired Fund and its shareholders.  The attached proxy card seeks your vote in favor of the proposed reorganization of your Fund. Each Reorganization is a separate transaction, and no Reorganization is contingent upon the approval of any other Reorganization described herein.

The investment objectives, strategies, and risks of each Acquired Fund are similar, but also differ in certain respects, from those of the corresponding Acquiring Fund. The enclosed Prospectus/Proxy Statement provides important information regarding such differences, as well as similarities, that shareholders should consider in determining whether an investment in the Acquiring Fund(s) is appropriate for them. Shareholders may redeem their shares of an Acquired Fund at any time prior to the closing of the relevant Reorganization. No contingent deferred sales charge will be assessed in connection with any redemption of your shares of an Acquired Fund prior to the Reorganizations.

These materials also include a proxy card, which is, in essence, a ballot.  If you complete, sign and return a proxy card, we’ll vote your proxy exactly as you tell us.  If you simply sign and return your proxy card without indicating how your shares are to be voted, we’ll vote your proxy FOR the Reorganizations of the Acquired Funds, which is in accordance with the recommendation of the Acquired Trust’s Board of Trustees.

We urge you to review carefully the Reorganization proposals in the Prospectus/Proxy Statement.  Then, fill out the proxy card and return it to us so that we know how you would like to vote.  When shareholders return their proxy cards promptly, additional costs of having to conduct additional solicitation or mailings may be avoided. If you have any questions on how to cast your vote or would like to quickly vote your shares, call Morrow Sodali Fund Solutions, our proxy solicitor, toll free at 833 459-3558.

DELAWARE IVY MUNICIPAL BOND FUND

DELAWARE IVY MUNICIPAL HIGH INCOME FUND

DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND

DELAWARE IVY CORPORATE BOND FUND

DELAWARE IVY CROSSOVER CREDIT FUND

DELAWARE IVY LIMITED-TERM BOND FUND

DELAWARE IVY STRATEGIC INCOME FUND

100 Independence,

610 Market Street

Philadelphia, Pennsylvania 19106-2354

800 523-1918

NOTICE OF SPECIAL MEETING OF SHAREHOLDERS

To be held on June 27, 2023

To the Shareholders of Delaware Ivy Municipal Bond Fund, Delaware Ivy Municipal High Income Fund, Delaware Ivy California Municipal High Income Fund, Delaware Ivy Corporate Bond Fund, Delaware Ivy Crossover Credit Fund, Delaware Ivy Limited-Term Bond Fund, and Delaware Ivy Strategic Income Fund:

NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders (the “Meeting”) of Delaware Ivy Municipal Bond Fund, Delaware Ivy Municipal High Income Fund, Delaware Ivy California Municipal High Income Fund, Delaware Ivy Corporate Bond Fund, Delaware Ivy Crossover Credit Fund, Delaware Ivy Limited-Term Bond Fund, and Delaware Ivy Strategic Income Fund will be held via teleconference on June 27, 2023 at 12:30pm ET. As described further below, the shareholders of each Acquired Fund are being asked to approve an Agreement and Plan of Reorganization with respect to that Fund. Each Reorganization is a separate transaction, and no Reorganization is contingent upon the approval of any other Reorganization described herein.

The Meeting is being called for the following purposes:

1. For Delaware Ivy Municipal Bond Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy Municipal Bond Fund and Delaware Tax-Free USA Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Municipal Bond Fund by Delaware Tax-Free USA Fund in exchange solely for shares of Delaware Tax-Free USA Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Municipal Bond Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Municipal Bond Fund.

2. For Delaware Ivy Municipal High Income Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy Municipal High Income Fund and Delaware National High-Yield Municipal Bond Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Municipal High Income Fund by Delaware National High-Yield Municipal Bond Fund in exchange solely for shares of Delaware National High-Yield Municipal Bond Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Municipal High Income Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Municipal High Income Fund.

3. For Delaware Ivy California Municipal High Income Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy California Municipal High Income Fund and Delaware Tax-Free California Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy California Municipal High Income Fund by Delaware Tax-Free California Fund in exchange solely for shares of Delaware Tax-Free California Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy California Municipal High Income Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy California Municipal High Income Fund.

4. For Delaware Ivy Corporate Bond Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy Corporate Bond Fund and Delaware Corporate Bond Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Corporate Bond Fund by Delaware Corporate Bond Fund in exchange solely for shares of Delaware Corporate Bond Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Corporate Bond Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Corporate Bond Fund.

5. For Delaware Ivy Crossover Credit Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy Crossover Credit Fund and Delaware Corporate Bond Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Crossover Credit Fund by Delaware Corporate Bond Fund in exchange solely for shares of Delaware Corporate Bond Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Crossover Credit Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Crossover Credit Fund.

6. For Delaware Ivy Limited-Term Bond Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy Limited-Term Bond Fund and Delaware Limited-Term Diversified Income Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Limited-Term Bond Fund by Delaware Limited-Term Diversified Income Fund in exchange solely for shares of Delaware Limited-Term Diversified Income Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Limited-Term Bond Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Limited-Term Bond Fund.

7. For Delaware Ivy Strategic Income Fund shareholders only: To approve an Agreement and Plan of Reorganization (the “Plan”) between Delaware Ivy Strategic Income Fund and Delaware Strategic Income Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Strategic Income Fund by Delaware Strategic Income Fund in exchange solely for shares of Delaware Strategic Income Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Strategic Income Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Strategic Income Fund.

8. To transact such other business as may properly come before the Meeting.

A copy of the form of the Plan, which more completely sets forth the terms of each proposed Reorganization, is attached as Exhibit A to the Prospectus/Proxy Statement.

Shareholders of record as of the close of business on April 10, 2023 (the “Record Date”) are entitled to notice of, and to vote at, the Meeting and any adjournment or postponement of the Meeting.  Each shareholder will be entitled to vote only with respect to a Reorganization involving any Acquiring Fund in which the shareholder held shares as of the Record Date.

The Meeting will be conducted exclusively via teleconference. Any shareholder wishing to participate in the Meeting telephonically can do so. If you were a record holder of the Fund shares as of the Record Date, please send an e-mail to the Fund’s proxy solicitor, Morrow Sodali Fund Solutions (“MSFS”), at msfs-meetinginfo@morrowsodali.com no later than 2:00pm ET on June 26, 2023 to register. Please include the Fund’s name(s) in the subject line and provide your name and address in the body of the e-mail. MSFS will then e-mail you the credentials to the teleconference and instructions for voting during the Meeting. If you held Fund shares through an intermediary, such as a broker-dealer, as of the Record Date, and you want to participate in the Meeting, please e-mail MSFS at msfs-meetinginfo@morrowsodali.com no later than 2:00pm ET on June 26, 2023 to register. Please include the Fund’s name(s) in the subject line and provide your name, address and proof of ownership as of the Record Date from your intermediary. Please be aware that if you wish to vote at the Meeting you must first obtain a legal proxy from your intermediary reflecting the Fund’s name(s), the number of Fund shares you held and your name and e-mail address. You may forward an email from your intermediary containing the legal proxy or e-mail an image of the legal proxy to MSFS at msfs-meetinginfo@morrowsodali.com and put “Legal Proxy” in the subject line. MSFS will then provide you with the credentials for the teleconference and instructions for voting during the Meeting. The teleconference credentials will only be active for the date and time of the Meeting. If you have any questions prior to the Meeting, please call MSFS at 833 459-3558.

Whether or not you plan to attend the Meeting via teleconference, your vote is needed.

Voting is quick and easy. Everything you need is enclosed. You may vote by completing and returning your proxy card in the enclosed postage-paid return envelope, by calling the toll-free telephone number listed on the enclosed proxy card, or by visiting the Internet website listed on the enclosed proxy card. You may receive more than one set of proxy materials if

you hold shares in more than one account. Please be sure to vote each proxy card you receive. If we do not hear from you, our proxy solicitor, MSFS, may contact you. This will ensure that your vote is counted even if you cannot or do not wish to attend the Meeting. If you have any questions about the proposals or how to vote, you may call MSFS at 833 459-3558 and a representative will assist you.

May 3, 2023

Important Notice Regarding the Availability of Proxy Materials for the Meeting:

The Notice of Special Meeting of Shareholders and Proxy Statement/Prospectus are available at https://proxyvotinginfo.com/p/delawareivy2023.

PROSPECTUS/ PROXY STATEMENT

TABLE OF CONTENTS

DELAWARE IVY MUNICIPAL BOND FUND

DELAWARE IVY MUNICIPAL HIGH INCOME FUND

DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND

DELAWARE IVY CORPORATE BOND FUND

DELAWARE IVY CROSSOVER CREDIT FUND

DELAWARE IVY LIMITED-TERM BOND FUND

DELAWARE IVY STRATEGIC INCOME FUND

100 Independence,

610 Market Street

Philadelphia, Pennsylvania 19106-2354

800 523-1918

PROXY STATEMENT/PROSPECTUS

Dated May 3, 2023

This Proxy Statement/Prospectus solicits proxies to be voted at a Special Meeting of Shareholders (the “Meeting”) of Delaware Ivy Municipal Bond Fund, Delaware Ivy Municipal High Income Fund, Delaware Ivy California Municipal High Income Fund, Delaware Ivy Corporate Bond Fund, Delaware Ivy Crossover Credit Fund, Delaware Ivy Limited-Term Bond Fund, and Delaware Ivy Strategic Income Fund (each, an “Acquired Fund” and together, the “Acquired Funds”). Each Acquired Fund is a series of Ivy Funds (the “Acquired Trust”). At the Meeting, shareholders of each Acquired Fund will be asked to approve an Agreement and Plan of Reorganization (the “Plan”). The Meeting is being called for the following purposes:

1. For Delaware Ivy Municipal Bond Fund shareholders only: To approve a Plan between Delaware Ivy Municipal Bond Fund and Delaware Tax-Free USA Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Municipal Bond Fund by Delaware Tax-Free USA Fund in exchange solely for shares of Delaware Tax-Free USA Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Municipal Bond Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Municipal Bond Fund.

2. For Delaware Ivy Municipal High Income Fund shareholders only: To approve a Plan between Delaware Ivy Municipal High Income Fund and Delaware National High-Yield Municipal Bond Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Municipal High Income Fund by Delaware National High-Yield Municipal Bond Fund in exchange solely for shares of Delaware National High-Yield Municipal Bond Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Municipal High Income Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Municipal High Income Fund.

3. For Delaware Ivy California Municipal High Income Fund shareholders only: To approve a Plan between Delaware Ivy California Municipal High Income Fund and Delaware Tax-Free California Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy California Municipal High Income Fund by Delaware Tax-Free California Fund in exchange solely for shares of Delaware Tax-Free California Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy California Municipal High Income Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy California Municipal High Income Fund.

4. For Delaware Ivy Corporate Bond Fund shareholders only: To approve a Plan between Delaware Ivy Corporate Bond Fund and Delaware Corporate Bond Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Corporate Bond Fund by Delaware Corporate Bond Fund in exchange solely for shares of Delaware Corporate Bond Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Corporate Bond Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Corporate Bond Fund.

5. For Delaware Ivy Crossover Credit Fund shareholders only: To approve a Plan between Delaware Ivy Crossover Credit Fund and Delaware Corporate Bond Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Crossover Credit Fund by Delaware Corporate Bond Fund in exchange solely for shares of Delaware Corporate Bond Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Crossover Credit Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Crossover Credit Fund.

6. For Delaware Ivy Limited-Term Bond Fund shareholders only: To approve a Plan between Delaware Ivy Limited-Term Bond Fund and Delaware Limited-Term Diversified Income Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Limited-Term Bond Fund by Delaware Limited-Term Diversified Income Fund in exchange solely for shares of Delaware Limited-Term Diversified Income Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Limited-Term Bond Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Limited-Term Bond Fund.

7. For Delaware Ivy Strategic Income Fund shareholders only: To approve a Plan between Delaware Ivy Strategic Income Fund and Delaware Strategic Income Fund, that provides for: (i) the acquisition of substantially all of the assets of Delaware Ivy Strategic Income Fund by Delaware Strategic Income Fund in exchange solely for shares of Delaware Strategic Income Fund; (ii) the distribution of such shares to the shareholders of Delaware Ivy Strategic Income Fund; and (iii) the complete liquidation and dissolution of Delaware Ivy Strategic Income Fund.

8. To transact such other business as may properly come before the Meeting.

Each of the Acquired Funds will be reorganized into its corresponding Delaware Funds by Macquarie as indicated below (each, an “Acquiring Fund” and together, the “Acquiring Funds”), on or about September 15, 2023 (“Reorganization Date”).

Delaware Group Tax-Free Fund, Voyageur Mutual Funds, Delaware Group Income Funds, Delaware Group Limited-Term Government Funds, and Delaware Group Government Fund are each referred to individually as an “Acquiring Trust” and together as the “Acquiring Trusts.” The Acquired Funds and Acquiring Funds together are referred to as the “Funds.”

If an Acquired Fund’s shareholders vote to approve the Plan: (i) all of the property, assets, and goodwill (Assets) of each Acquired Fund will be acquired by the corresponding Acquiring Fund, and (ii) each Acquiring Trust, on behalf

of the corresponding Acquiring Fund, will assume the liabilities of the Acquired Fund, in exchange for shares of the Acquiring Fund.  According to the Plan, each Acquired Fund will be liquidated and dissolved following the Reorganization. The Boards of Trustees of the Acquired Trust and the Acquiring Trusts (each, a “Board” and together, the “Boards”) have approved the Plan and each Reorganization. Pursuant to the Plan, holders of Class A, Class C, Class R, Class R6, Institutional Class, and Class Y shares, as applicable, of each Acquired Fund will receive shares of equal aggregate net asset value (“NAV”) of Class A, Class C, Class R, Class R6, and Institutional Class shares, as applicable, respectively, of the corresponding Acquiring Fund. This exchange will occur on a date agreed upon by the parties to the Plan, which is currently anticipated to occur on or around September 15, 2023 (“Reorganization Date”). Class A shareholders of the Acquired Funds, as applicable, will not be assessed sales charges, including any contingent deferred sales charge, for the exchange of their shares for Class A shares of the Acquiring Funds. Additionally, Class C shareholders of the Acquiring Funds, as applicable, will not incur any contingent deferred sales charge for the exchange of their shares for Class C shares of the corresponding Acquiring Fund. As applicable, subsequent purchases of Class A shares or Class C shares of an Acquiring Fund will, however, be subject to applicable sales charges.  Each Acquiring Fund will be the accounting survivor of the related Reorganization.

Each Fund is a diversified series of its respective trust. Delaware Management Company (“DMC” or the “Manager”), a series of Macquarie Investment Management Business Trust (a Delaware statutory trust), serves as the investment advisor for the Funds.

This Proxy Statement/Prospectus sets forth the information that you should know about the Reorganizations. You should retain this Proxy Statement/Prospectus for future reference.  A Statement of Additional Information (“SAI”) dated May 3, 2023, relating to this Proxy Statement/Prospectus, contains additional information about the Acquiring Funds and the Reorganizations, and has been filed with the U.S. Securities and Exchange Commission (“SEC”) and is incorporated herein by reference.

The prospectuses of the Acquiring Funds (“Acquiring Fund Prospectuses”) are intended to provide you with information about each Acquiring Fund.  The prospectuses of the Acquired Funds (“Acquired Fund Prospectuses”) provide additional information about the Acquired Funds and are incorporated herein by reference. Relevant information about the Acquired Fund Prospectuses and Acquiring Fund Prospectuses are as follows:

You can request a free copy of any of the Funds’ Prospectuses, SAIs, Annual Reports, or Semiannual Reports by calling 800 523-1918 or by writing to the Funds c/o Delaware Funds by Macquarie^®, P.O. Box 534437, Pittsburgh, PA 15253-4437 (regular mail) or c/o Delaware Funds by Macquarie Service Center, Attention: 534437, 500 Ross Street, 154-0520, Pittsburgh, PA 15262 (overnight courier service).

Additional information about each Acquiring Fund can be viewed online from the EDGAR database without charge on the SEC’s internet site at www.sec.gov.

The SEC has not approved or disapproved these securities or passed upon the adequacy of this Proxy Statement/Prospectus.  Any representation to the contrary is a criminal offense.

THE REORGANIZATIONS

At a meeting held on February 14-16, 2023, the Boards, including a majority of the Trustees who are not “interested persons” (the “Independent Trustees”) as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), on behalf of each of the Funds, considered the proposal to reorganize each Acquired Fund with and into the corresponding Acquiring Fund, and approved the Plan.

What am I being asked to vote upon?

The shareholders of each Acquired Fund are being asked to vote to approve the Agreement and Plan of Reorganization between the Acquired Fund and its corresponding Acquiring Fund. The Acquired Trust and each Acquiring Trust are organized as Delaware statutory trusts with identical shareholder rights. Each Plan provides that: (i) all of the property, assets, and goodwill (“Assets”) of the applicable Acquired Fund will be acquired by the corresponding Acquiring Fund, and (ii) each Acquiring Trust, on behalf of the corresponding Acquiring Fund, will assume the liabilities of the Acquired Fund, in exchange for shares of the Acquiring Fund.  According to the Plan, each Acquired Fund will be liquidated and dissolved following the Reorganization. Each Reorganization constitutes a separate reorganization, and no Reorganization is contingent upon the approval of any other Reorganization. Each Reorganization was proposed by Management and approved by the appliable Fund’s Board. Management proposed each Reorganization in consideration of portfolio characteristics, similarities in investment approach, overlap of portfolio holdings and shared portfolio management teams, among other considerations.

What are the Board recommendations regarding each of the Reorganizations?

For the following reasons and the reasons set forth below under “Reasons for the Reorganization,” the Board of each Fund has determined that the Reorganization is in the best interests of the respective Fund and its shareholders. The Board of each Acquired Fund and Acquiring Fund has also concluded that the interests of the existing shares of such Fund will not be diluted as a result of the applicable Reorganization. In making these determinations, the Board of each Fund noted the recommendation of DMC, the Funds’ investment manager, and considered the following, among other factors: (i) each Acquiring Fund and its corresponding Acquired Fund share similar investment objectives, principal investment strategies and principal risks, and materially similar fundamental investment restrictions, (ii) each Acquiring Fund and its corresponding Acquired Fund have the same portfolio management teams and a high degree of portfolio holding overlap, which is anticipated to mitigate transaction costs in connection with each Reorganization; (iii) each Acquiring Fund’s overall total expense ratio is expected to be equal to or lower than the corresponding Acquired Fund’s total expense ratio following the Reorganizations, taking into account applicable expense limitation arrangements, with the exception of Class C shares of Delaware National High-Yield Municipal Bond Fund (Acquiring Fund), which will have a total expense ratio that is 2 basis points (0.02%) higher than Class C shares of Delaware Ivy Municipal High Income Fund (Acquired Fund); (iv) each Acquiring Fund’s assets will increase as a result of the Reorganization which may result in increased economies of scale and reach and/or get closer (as applicable) to breakpoints in the management fee schedules; (v) the reduced number of substantially similar Funds should benefit distribution efforts and shelf space eligibility; (vi) the performance of the Funds, noting generally favorable Acquiring Fund performance across various periods as compared to the corresponding Acquired Fund; (vii) each Acquired Fund and its corresponding Acquiring Fund share the same portfolio management team; (viii) the assets under management of each Fund (e.g., smaller funds going into larger

funds) and DMC’s view on ability to garner additional assets of each Fund outside of the Reorganizations; and (ix) each Reorganization will be structured so it qualifies as a tax-free reorganization.

What will happen if shareholders approve the Plan?

What is the anticipated timing of the Reorganizations?

The Meeting is scheduled to occur on June 27, 2023.  If the necessary shareholder approval is obtained for a Reorganization, the Reorganization is expected to be completed on or around September 15, 2023.

What are the costs of the Reorganizations?

The expenses related to the Reorganizations (excluding brokerage costs, if any), including the costs associated with the delivery of this Prospectus/Proxy Statement, are anticipated to be approximately $1,430,000-$1,630,000. The total costs of each Reorganization, as detailed in the table below, will be split as follows: one third paid by the Acquiring Funds together, one third paid by the Acquired Funds together, and one third by DMC, with individual Fund contributions to be assessed based on proportional assets.

How will the Reorganizations affect Fund fees and expenses?

With respect to the Delaware Ivy California Municipal High Income Fund, the Delaware Ivy Corporate Bond Fund and the Delaware Ivy Limited-Term Bond Fund, the corresponding Acquiring Fund’s management fee rate is higher than the Acquired Fund’s management fee rate at current asset levels. The net expense ratio of each Acquiring Fund is expected to be equal to or lower than the net expense ratio of the corresponding Acquired Fund following the Reorganization, with the exception of Class C shares of Delaware National High-Yield Municipal Bond Fund (Acquiring Fund), which have a total expense ratio that is 2 basis points (0.02%) higher than Class C shares of Delaware Ivy Municipal High Income Fund (Acquired Fund). As illustrated in the fee and expense tables below, certain existing classes of the Acquired Funds will be converted into share classes of a corresponding Acquiring Fund that are anticipated to have a higher gross expense ratios following the respective Reorganization. Management has implemented a voluntary fee waiver to reduce the gross expenses of each Acquiring Fund as detailed in the tables below. However, there is a possibility that these voluntary waivers will not be extended. Each waiver will remain in effect for the stated term and may not be terminated prior to the date indicated.

What happens if a Reorganization is not approved?

If a Reorganization is not approved by the applicable Acquired Fund’s shareholders or does not close for any other reason, such shareholders will remain shareholders of the Acquired Fund, and the Acquired Fund will continue to operate. The Acquired Fund’s Board then will consider such other actions as it deems necessary or appropriate, including possible liquidation of the Acquired Fund.

How will shareholder voting be handled?

Shareholders who own shares of an Acquired Fund at the close of business on the Record Date will be entitled to vote at the Meeting, and will be entitled to one vote for each full share and a proportionate fractional vote for each fractional share that they hold.  Approval of a Reorganization requires the affirmative vote of the lesser of: (i) a majority of the outstanding shares of an Acquired Fund; or (ii) 67% or more of the outstanding shares of the Acquired Fund present at or represented by proxy at the Meeting if the holders of more than 50% of the outstanding shares are present or represented by proxy (“1940 Act Majority Vote”).  MSFS has been retained by the Acquired Funds to solicit, collect, and tabulate shareholder votes.

Please vote by proxy as soon as you receive this Proxy Statement/Prospectus. You may cast your vote by completing, signing and mailing the enclosed proxy card, by calling the number on the enclosed proxy card, or via the Internet by following the on-line instructions if your account is eligible.  If you vote by any of these methods, the persons appointed as proxies will officially cast your votes on your behalf at the Meeting.  You may also attend the Meeting and cast your vote at the Meeting via teleconference.

The Meeting will be conducted exclusively via teleconference. Any shareholder wishing to participate in the Meeting telephonically can do so. If you were a record holder of the Fund shares as of the Record Date, please send an e-mail to the Fund’s proxy solicitor, MSFS, at msfs-meetinginfo@morrowsodali.com no later than 2:00pm

ET on June 26, 2023 to register. Please include the Fund’s name(s) in the subject line and provide your name and address in the body of the e-mail. MSFS will then e-mail you the credentials to the teleconference and instructions for voting during the Meeting. If you held Fund shares through an intermediary, such as a broker-dealer, as of the Record Date, and you want to participate in the Meeting, please e-mail MSFS at msfs-meetinginfo@morrowsodali.com no later than 2:00pm ET on June 26, 2023 to register. Please include the Fund’s name(s) in the subject line and provide your name, address and proof of ownership as of the Record Date from your intermediary. Please be aware that if you wish to vote at the Meeting you must first obtain a legal proxy from your intermediary reflecting the Fund’s name(s), the number of Fund shares you held and your name and e-mail address. You may forward an email from your intermediary containing the legal proxy or e-mail an image of the legal proxy to MSFS at msfs-meetinginfo@morrowsodali.com and put “Legal Proxy” in the subject line. MSFS will then provide you with the credentials for the teleconference and instructions for voting during the Meeting. The teleconference credentials will only be active for the date and time of the Meeting. If you have any questions prior to the Meeting, please call MSFS at 833 459-3558.

You can revoke your proxy or change your voting instructions at any time until the vote is taken at the Meeting.  For more details about shareholder voting, see the “Voting Information” section of this Prospectus/Proxy Statement.

THE BOARD OF EACH ACQUIRED FUND RECOMMENDS THAT YOU VOTE TO APPROVE THE PLAN FOR SUCH ACQUIRED FUND.

COMPARISON OF INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT STRATEGIES, PRINCIPAL RISKS, AND FUNDAMENTAL INVESTMENT RESTRICTIONS

How do the investment objectives, principal investment strategies, principal risks, and fundamental investment restrictions of the Acquired Funds compare against those of the Acquiring Funds?

This section will help you compare the investment objectives, principal investment strategies, principal risks, and fundamental investment restrictions of the Acquired Funds and the Acquiring Funds. More complete information may be found in the Funds’ Prospectuses and SAIs.  For a complete description of an Acquiring Fund’s investment objectives, investment strategies, and risks, you should read the Acquiring Fund Prospectus.

REORGANIZATION OF DELAWARE IVY MUNICIPAL BOND FUND INTO DELAWARE TAX-FREE USA FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have substantially the same investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” and neither Fund will concentrate its investments in any one industry.

Each Fund primarily invests in municipal debt obligations and in doing so generate income that is exempt from federal income tax.

Under normal circumstances, the Acquiring Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities the income from which is exempt from federal income tax, including the federal alternative minimum tax. Similarly, under normal circumstances, at least 80% of the net assets of the Acquired Fund, plus any borrowings for investment purposes, will be invested in municipal bonds. Each Fund’s 80% policy is fundamental and may not be changed without prior shareholder approval. With respect to the Acquiring Fund, for purposes of its 80% policy, the Fund invests specifically in securities the income from which is exempt from federal income tax, including the federal alternative minimum tax (AMT).  In contrast, the Acquired Fund, for purposes of its 80% policy, invests in securities, the interest of which is exempt from federal income tax, but a portion of the interest of which is excludable from gross income for federal tax purpose, may be an item of tax preference of the AMT.

The Acquired Fund principally invests in municipal bonds. “Municipal bonds” means obligations issued by or on behalf of states, territories and possessions of the United States (including the District of Columbia, Puerto Rico, the US Virgin Islands and Guam), the interest on which is excludable from gross income for federal income tax purposes. Similarly, the Acquiring Fund primarily invests municipal debt obligations that are issued by state and local government to raise funds for various public purposes, which includes general obligation bonds and revenue bonds, which the Acquired Fund primarily invests in.

Each Fund invests in securities of various maturities. However, the Acquiring Fund may invest up to 20% of its net assets in  below investment grade or high yield fixed income securities (Junk Bonds), while the Acquired Fund mainly invests in investment grade municipal bonds of any maturity. The Acquiring Fund will typically invest in securities that have a dollar-weighted average effective maturity of between 5 and 30 years.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The principal investment risks for the Acquired Fund and Acquiring Fund are similar, but do have differences. Both Funds are subject to interest rate risk, credit risk, alternative minimum tax risk, liquidity risk, IBOR risk, and active management and selection risk. Although there are certain risks that are labeled differently between the Acquired Fund and the Acquiring Fund, many of them address the same or related risks. For example, the Acquired Fund’s prospectus discloses that it is subject to political, legislative or regulatory risk while the Acquiring Fund’s prospectus discloses that it is subject to government and regulatory risk. In addition, the Acquired Fund discloses that it is subject to prepayment risk while the Acquiring Fund discloses that it is subject to call risk. Likewise, the Acquired Fund’s prospectus discloses that the Fund is subject to focus risk, while the Acquiring Fund’s prospectus discloses that the Fund is subject to industry and sector risk and geographic concentration risk, both of which are discussed in the focus risk section for the Acquired Fund.

In addition, the Acquiring Fund is subject to high yield (junk bond) risk and market risk. While the Acquired Fund’s prospectus did not disclose a specific market risk, it included related risks such as fixed income risk. The Acquired Fund is also subject to taxability risk, which was discussed in other risk disclosure for the Acquiring Fund.

Even though the Acquired Fund and Acquiring Fund share many of the same types of risks, the degree of such risks may vary.  Each Fund’s relative risk/return profile cannot be determined by the following risk descriptions and comparisons alone. However, the Acquired Fund and Acquiring Fund share a similar risk/return profile.

Market risk. (Acquiring Fund) The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Fixed Income risk. (Acquired Fund) The risk that bonds may decrease in value if interest rates increase; an issuer may not be able to make principal and interest payments when due; a bond may be prepaid prior to maturity; and, in

the case of high yield bonds (junk bonds), such bonds may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Prepayment risk (Acquired Fund) The risk that the principal on a bond that is held by a fund will be prepaid prior to maturity at a time when interest rates are lower than what that bond was paying. A fund may then have to reinvest that money at a lower interest rate.

Call risk. (Acquiring Fund) The risk that a bond issuer will prepay the bond during periods of low interest rates, forcing a fund to reinvest that money at interest rates that might be lower than rates on the called bond.

Interest rate risk. (Acquired Fund and Acquiring Fund) The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Credit risk. (Acquired Fund and Acquiring Fund) The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

Liquidity risk. (Acquired Fund and Acquiring Fund) The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Government and regulatory risk. (Acquiring Fund) The risk that heightened sensitivity to regional, state, US territories or possessions (such as the Commonwealth of Puerto Rico, Guam, or the US Virgin Islands), and local political and economic conditions could adversely affect the holdings in and performance of a fund. There is also the risk that there could be an inadequate supply of municipal bonds in a particular state or US territory or possession.

Political, legislative or regulatory risk. (Acquired Fund) The risk that the municipal securities market generally, or certain municipal securities in particular, may be significantly affected by adverse political, legislative or regulatory changes or litigation at the federal or state level.

Alternative minimum tax risk. (Acquired Fund and Acquiring Fund) The risk that the Fund may invest in municipal bonds the interest on which (and, therefore, any part of Fund dividends attributable to such interest) is a Tax Preference Item for shareholders subject to the AMT. If a Fund shareholder’s AMT liability is increased as a result of such treatment, that would reduce the Fund’s after-tax return to the shareholder.

Taxability risk. (Acquired Fund) The risk that the Fund and the Manager rely on the opinion of an issuer’s bond counsel that the interest paid on the issuer’s securities will not be subject to federal income tax. However, after the Fund buys a security backed by such an opinion, distributions by the Fund may become taxable to shareholders due to noncompliant conduct by a bond issuer, unfavorable changes in federal tax laws, or adverse interpretations of tax laws by the Internal Revenue Service (IRS) or other authorities or because of other factors. Such adverse interpretations or actions could cause interest from a security to become taxable, possibly retroactively, subjecting shareholders to increased tax liability. In addition, such adverse interpretations or actions could cause the value of a security, and therefore, the value of the Fund’s shares, to decline.

High yield (junk bond) risk. (Acquiring Fund) The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

Industry and sector risk. (Acquiring Fund) The risk that the value of securities in a particular industry or sector will decline because of changing expectations for the performance of that industry or sector.

Geographic concentration risk. (Acquiring Fund) The risk that heightened sensitivity to regional, state, US territories or possessions (such as the Commonwealth of Puerto Rico, Guam, or the US Virgin Islands), and local political and economic conditions could adversely affect the holdings in and performance of a fund. There is also the risk that there could be an inadequate supply of municipal bonds in a particular state or US territory or possession.

Focus risk. (Acquired Fund) The risk that, at times, the Fund may invest significantly in municipal bonds that finance similar types of projects, such as those in health care, life care, public power, education and transportation, among others, and in municipal bonds of issuers located in the same geographical area. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project or a declining need for the project, likely would affect all similar projects, thereby increasing market risk.

IBOR risk. (Acquired Fund and Acquiring Fund) The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

Active management and selection risk. (Acquired Fund and Acquiring Fund) The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions. Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

REORGANIZATION OF DELAWARE IVY MUNICIPAL HIGH INCOME FUND INTO DELAWARE NATIONAL HIGH-YIELD MUNICIPAL BOND FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have similar, but not identical investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” and neither Fund will concentrate its investments in any one industry.

Under normal circumstances, the Acquiring Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in municipal securities the income from which is exempt from federal income tax. (80% policy). Similarly, the Acquired Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in a diversified portfolio of municipal bonds (80% policy). Each Fund’s 80% policy is fundamental and may not be changed without prior shareholder approval.

Each Fund primarily invests in municipal debt obligations and in doing so generates income that is exempt from federal income tax.  With respect to the Acquired Fund, for purposes of its 80% policy, the Fund invests in a diversified portfolio of municipal bonds, the interest of which is exempt from federal income tax, but a significant portion of the interest of which is excludable from gross income for federal tax purpose, may be an item of tax preference of the AMT. “Municipal bonds” means obligations issued by or on behalf of states, territories and possessions of the United States (including the District of Columbia, Puerto Rico, the US Virgin Islands and Guam), the interest on which is excludable from gross income for federal income tax purposes. Similarly, the Acquiring Fund primarily invests municipal debt obligations that are issued by state and local government to raise funds for various public purposes, which includes revenue bonds, which the Acquired Fund primarily invests in.

Each Fund will invest in lower-rated securities. Under normal conditions, the Acquiring Fund will primarily invest in lower-rated municipal securities, which typically offer higher income potential and involve greater risk than higher-quality securities. The Acquired Fund typically invests 65% of its total net assets in medium- and lower-quality bonds, but may invest up to 100% of its total assets in non-investment grade bonds.

The Acquired Fund may invest in higher-quality municipal bonds at times when yield spreads are narrow and the Manager believes that the higher yields do not justify the increased risk, and/or when, in the opinion of the Manager, there is a lack of medium- and lower-quality bonds in which to invest.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The principal investment risks for the Acquired Fund and Acquiring Fund are similar, but not identical. Both Funds are subject to interest rate risk, high yield (junk bond) risk, credit risk, alternative minimum tax risk, liquidity risk, IBOR risk, and active management and selection risk. Although there are certain risks that are described differently between the Acquired Fund and the Acquiring Fund, many of them address the same or related risks. For example, the Acquired Fund’s prospectus discloses that it is subject to political, legislative or regulatory risk while the Acquiring Fund’s prospectus discloses that it is subject to government and regulatory risk. In addition, the Acquired Fund’s prospectus discloses that it is subject to prepayment risk while the Acquiring Fund’s prospectus discloses that it is subject to call risk. Likewise, the Acquired Fund’s prospectus discloses that the Fund is subject to focus risk, while the Acquiring Fund’s prospectus discloses that the Fund is subject to industry and sector risk and geographic concentration risk, both of which are discussed in the focus risk section for the Acquired Fund.

In addition, the Acquiring Fund is subject to market risk. While the Acquired Fund’s prospectus did not disclose a specific market risk, it addressed risks disclosed in the Acquiring Fund’s market risk section in other risks such as fixed income risk. The Acquired Fund is also subject to taxability risks, which were discussed in other risk disclosure for the Acquiring Fund.

Even though the Acquired Fund and Acquiring Fund share many of the same types of risks, the degree of such risks may vary. Each Fund’s relative risk/return profile cannot be determined solely by the following risk descriptions and comparisons. However, the Acquired Fund and Acquiring Fund share a similar risk/return profile.

Market risk. (Acquiring Fund) The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Fixed Income risk. (Acquired Fund) The risk that bonds may decrease in value if interest rates increase; an issuer may not be able to make principal and interest payments when due; a bond may be prepaid prior to maturity; and, in the case of high yield bonds (“junk bonds”), such bonds may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Prepayment risk (Acquired Fund) The risk that the principal on a bond that is held by a fund will be prepaid prior to maturity at a time when interest rates are lower than what that bond was paying. A fund may then have to reinvest that money at a lower interest rate.

Call risk. (Acquiring Fund) The risk that a bond issuer will prepay the bond during periods of low interest rates, forcing a fund to reinvest that money at interest rates that might be lower than rates on the called bond.

Interest rate risk. (Acquired Fund and Acquiring Fund) The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Credit risk. (Acquired Fund and Acquiring Fund) The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

Liquidity risk. (Acquired Fund and Acquiring Fund) The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Government and regulatory risk. (Acquiring Fund) The risk that heightened sensitivity to regional, state, US territories or possessions (such as the Commonwealth of Puerto Rico, Guam, or the US Virgin Islands), and local political and economic conditions could adversely affect the holdings in and performance of a fund. There is also the risk that there could be an inadequate supply of municipal bonds in a particular state or US territory or possession.

Political, legislative or regulatory risk. (Acquired Fund) The risk that the municipal securities market generally, or certain municipal securities in particular, may be significantly affected by adverse political, legislative or regulatory changes or litigation at the federal or state level.

Alternative minimum tax risk. (Acquired Fund and Acquiring Fund) The risk that the Fund may invest in municipal bonds the interest on which (and, therefore, any part of Fund dividends attributable to such interest) is a Tax Preference Item for shareholders subject to the AMT. If a Fund shareholder’s AMT liability is increased as a result of such treatment, that would reduce the Fund’s after-tax return to the shareholder.

Taxability risk. (Acquired Fund) The risk that the Fund and the Manager rely on the opinion of an issuer’s bond counsel that the interest paid on the issuer’s securities will not be subject to federal income tax. However, after the Fund buys a security backed by such an opinion, distributions by the Fund may become taxable to shareholders due to noncompliant conduct by a bond issuer, unfavorable changes in federal tax laws, or adverse interpretations of tax laws by the Internal Revenue Service (IRS) or other authorities or because of other factors. Such adverse interpretations or actions could cause interest from a security to become taxable, possibly retroactively, subjecting shareholders to increased tax liability. In addition, such adverse interpretations or actions could cause the value of a security, and therefore, the value of the Fund’s shares, to decline.

High yield (junk bond) risk. (Acquired and Acquiring Fund) The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

Industry and sector risk. (Acquiring Fund) The risk that the value of securities in a particular industry or sector will decline because of changing expectations for the performance of that industry or sector.

Geographic concentration risk. (Acquiring Fund) The risk that heightened sensitivity to regional, state, US territories or possessions (such as the Commonwealth of Puerto Rico, Guam, or the US Virgin Islands), and local

political and economic conditions could adversely affect the holdings in and performance of a fund. There is also the risk that there could be an inadequate supply of municipal bonds in a particular state or US territory or possession.

Focus risk. (Acquired Fund) The risk that, at times, the Fund may invest significantly in municipal bonds that finance similar types of projects, such as those in health care, life care, public power, education and transportation, among others, and in municipal bonds of issuers located in the same geographical area. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project or a declining need for the project, likely would affect all similar projects, thereby increasing market risk.

IBOR risk. (Acquired Fund and Acquiring Fund) T The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

Active management and selection risk. (Acquired Fund and Acquiring Fund) The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions.  Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

REORGANIZATION OF DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND INTO DELAWARE TAX-FREE CALIFORNIA FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have substantially the same investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” and neither Fund will concentrate its investments in any one industry.

Under normal circumstances, the Acquiring Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in municipal securities the income from which is exempt from federal income tax, including the federal alternative minimum tax, and from California state personal income taxes. Similarly, the Acquired Fund, under normal circumstances, invests at least 80% of its net assets in a diversified portfolio of municipal securities with income payments that are exempt from Federal and California income taxes. Each Fund’s 80% policy is fundamental and may not be changed without prior shareholder approval. The Acquired Fund’s prospectus specifies that a significant portion of the current income paid by the Fund may be a tax preference item for purposes of the Federal alternative minimum tax (AMT).

The Acquired Fund’s prospectus discloses that it may invest up to 20% of its net assets in securities that pay taxable income. The Acquiring Fund may also invest up to 20% of its net assets in securities that pay taxable income.

Each Fund may invest in junk bonds. The Acquired Fund typically invests at least 50% of its total assets in medium- and lower- quality municipal securities, which includes junk bonds, while the Acquiring Fund may invest up to 20% of its net assets in junk bonds. In addition, the Acquired Fund may invest up to 100% of total assets in non-investment grade bonds. The Acquired Fund’s prospectus also discloses that the Manager may base its investment decision for a particular instrument primarily on its own credit analysis and not that of an NRSRO.

Lastly, the Acquired Fund may invest in higher-quality municipal bonds at times when yield spreads are narrow and the Manager believes that the higher yields do not justify the increased risk, and/or when, in the opinion of the Manager, there is a lack of medium- and lower-quality bonds in which to invest.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The Acquired Fund and the Acquiring Fund share the same principal investment risks and risk profile. Even though the Acquired Fund and Acquiring Fund share the same risks, the degree of such risks may vary. Each Fund’s relative risk/return profile cannot be determined by the following risk descriptions and comparisons alone.

Each below risk is applicable to both the Acquired and Acquiring Fund:

Market risk. The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Interest rate risk. The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Credit risk. The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

High yield (junk bond) risk. The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

Call risk. The risk that a bond issuer will prepay the bond during periods of low interest rates, forcing a fund to reinvest that money at interest rates that might be lower than rates on the called bond.

Liquidity risk. The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Alternative minimum tax risk. If a fund invests in bonds whose income is subject to the alternative minimum tax, that portion of the fund’s distributions would be taxable for shareholders who are subject to this tax.

Government and regulatory risk. The risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance. For example, a tax-exempt security may be reclassified by the Internal Revenue Service or a state tax authority as taxable, and/or future legislative, administrative, or court actions could cause interest from a tax-exempt security to become taxable, possibly retroactively.

Geographic concentration risk. The risk that heightened sensitivity to regional, state, US territories or possessions (such as the Commonwealth of Puerto Rico, Guam, or the US Virgin Islands), and local political and economic conditions could adversely affect the holdings in and performance of a fund. There is also the risk that there could be an inadequate supply of municipal bonds in a particular state or US territory or possession.

Industry and sector risk. The risk that the value of securities in a particular industry or sector will decline because of changing expectations for the performance of that industry or sector.

IBOR risk. The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

Active management and selection risk — The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions. Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

REORGANIZATION OF DELAWARE IVY CORPORATE BOND FUND INTO DELAWARE CORPORATE BOND FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have different investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” and neither Fund will concentrate its investments in any one industry.

Under normal circumstances, the Acquiring Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in corporate bonds (80% policy). Similarly, under normal circumstances, the Acquired Fund invests at least 80% of its net assets in corporate bonds (also referred to as corporate “debt securities” or “fixed-income securities”).  For the Acquired Fund, for purposes of its 80% Policy, “corporate bonds” includes any debt security issued by a domestic or foreign company with an initial maturity greater than one year. Each Fund’s 80% policy is nonfundamental and may be changed without shareholder approval.

Both Funds invest primarily in corporate bonds that have investment-grade credit ratings, or if unrated, are determined by the Manager to be of comparable quality to those that have investment grade ratings. The Acquired

Fund may not invest more than 20% of its total assets in non-investment grade debt securities. Similarly, the Acquiring Fund may invest up to 20% of its net assets in high yield corporate bonds (“junk bonds”).

Both Funds can invest in foreign securities. The Acquired Fund may not invest more than 40% of its total assets in foreign securities. Similarly, the Acquiring Fund may invest up to 40% of its total assets in foreign securities, but the Fund’s total non-US-dollar currency exposure will be limited, in the aggregate, to no more than 25% of net assets.

The Acquired Fund has no limitations regarding the duration of its holdings. Meanwhile, the Acquiring Fund’s average portfolio duration will generally vary within two years (plus or minus) of the current average duration of the Bloomberg US Corporate Investment Grade Index.

The Acquired Fund may significantly invest in debt securities payable from the same sector.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The principal investment risks for the Acquired Fund and Acquiring Fund are substantially similar, but do have differences. Both Funds are subject to foreign risk, interest rate risk, credit risk, liquidity risk, IBOR risk, high yield (junk bond) risk, active management and selection risk, and industry and sector risk. The Acquired Fund is also subject to Financials sector risk specifically.

Although there are certain risks that are labeled differently in the prospectuses for the Acquired Fund and Acquiring Fund, many of them relate to the same or similar risks. For example, the Acquired Fund’s prospectus discloses that it is subject to fixed income risk. The Acquiring Fund’s prospectus does not disclose fixed-income risk, but it does include market risk and loans and other indebtedness risk, both of which together include substantially similar risk disclosure to the Acquired Fund’s fixed-income risk. The Acquired Fund’s prospectus discloses that it is subject to US government securities risk while the Acquiring Fund discloses that it is subject to government and regulatory risk.

Even though the Acquired Fund and Acquiring Fund share many of the same types of risks, the degree of such risks may vary.  Each Fund’s relative risk/return profile cannot be determined by the following risk descriptions and

comparisons alone. However, the Acquired Fund and Acquiring Fund share a substantially similar risk/return profile.

Market risk. (Acquiring Fund) The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Financials sector risk. (Acquired Fund) The risk that the value of a fund’s shares will be affected by factors particular to the financials and related sectors (such as government regulation) and may fluctuate more widely than that of a fund that invests in a broad range of sectors.

Fixed income risk. (Acquired Fund)  The risk that bonds may decrease in value if interest rates increase; an issuer may not be able to make principal and interest payments when due; a bond may be prepaid prior to maturity; and, in the case of high yield bonds (“junk bonds”), such bonds may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates due to the current period of historically low interest rates.

Interest rate risk. (Acquired Fund and Acquiring Fund) The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Credit risk. (Acquired Fund and Acquiring Fund) The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

Industry and sector risk. (Acquired Fund and Acquiring Fund)  The risk that the value of securities in a particular industry or sector (such as banking) will decline because of changing expectations for the performance of that industry or sector.

High yield (junk bond) risk. (Acquired Fund and Acquiring Fund) The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

Loans and other indebtedness risk. (Acquiring Fund)  The risk that a fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower and the lending institution. A fund’s ability to sell its loans or to realize their full value upon sale may also be impaired due to the lack of an active trading market, irregular trading activity, wide bid/ask spreads, contractual restrictions, and extended trade settlement periods. In addition, certain loans in which a fund invests may not be considered securities. A fund therefore may not be able to rely upon the anti-fraud provisions of the federal securities laws with respect to these investments.

Foreign risk. (Acquired Fund and Acquiring Fund)  The risk that foreign securities (particularly in emerging markets) may be adversely affected by political instability, changes in currency exchange rates, inefficient markets and higher transaction costs, foreign economic conditions, the imposition of economic or trade sanctions, or inadequate or different regulatory and accounting standards.

IBOR risk. (Acquired Fund and Acquiring Fund) The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

Liquidity risk. (Acquired Fund and Acquiring Fund)  The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Government and regulatory risk. (Acquiring Fund)  The risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance.

US Government securities risk. (Acquired Fund)  The risk that certain US government securities, such as securities issued by Fannie Mae, Freddie Mac and the FHLB, are not backed by the full faith and credit of the US government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury

Active management and selection risk. (Acquired Fund and Acquiring Fund) The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions.  Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

REORGANIZATION OF DELAWARE IVY CROSSOVER CREDIT FUND INTO DELAWARE CORPORATE BOND FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have similar, but not identical investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” and neither Fund will concentrate its investments in any one industry.

Under normal circumstances, the Acquiring Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in corporate bonds (80% policy).  Similarly, under normal circumstances, the Acquired Fund invests at least 80% of its net assets in bonds (for this purpose, “bonds” includes any debt security with an initial maturity greater than one year) (80% policy). Each Fund’s 80% policy is nonfundamental and therefore, may be changed without shareholder approval.

The Acquired Fund primarily invests in corporate debt fixed-income securities. Each Fund can invest in both investment grade and non-investment grade rated bonds. The Acquiring Fund invests primarily in corporate bonds that have investment-grade credit ratings, but may invest up to 20% of its net assets in high yield corporate bonds (“junk bonds”). Whereas, the Acquired Fund typically will not invest more than 35% of its total assets in non-investment grade securities.. Each Fund also may invest in unrated debt securities if the Manager determines that they are of comparable quality.

The Acquired Fund invests in crossover debt, which generally refers to bonds rated at or near the point where the lower end of investment grade debt and higher end of high yield debt meet. Depending on the current Fund composition and market conditions, the Manager expect that a majority of the crossover bonds invested in by the Acquired Fund will be rated either BBB or BB by S&P, or comparably rated by another NRSRO, or if unrated, determined by the Manager to be of comparable quality.

Each Fund may invest in foreign securities. The Acquired Fund will primarily invest in debt securities issued by domestic companies, but also may invest up to 40% of its total assets in debt securities issued by foreign companies, including foreign securities that are denominated in US dollars or foreign currencies. Similarly, the Acquiring Fund may invest up to 40% of its total assets in foreign securities, but the Fund’s total non-US-dollar currency exposure will be limited, in the aggregate, to no more than 25% of net assets.

The Acquiring Fund’s average portfolio duration will generally vary within two years (plus or minus) of the current average duration of the Bloomberg US Corporate Investment Grade Index. In contrast, the Acquired Fund, except as noted below, has no limitations regarding the  duration or dollar-weighted average of its holdings.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The principal investment risks for the Acquired Fund and Acquiring Fund are substantially similar, but do have differences. Both Funds are subject to foreign risk, interest rate risk, credit risk, liquidity risk, IBOR risk, high yield (junk bond) risk and active management and selection risk.

Although there are certain risks that are labeled differently in the prospectuses for the Acquired Fund and Acquiring Fund, many of them relate to the same or similar risks. For example, the Acquired Fund’s prospectus discloses that it is subject to fixed income risk. The Acquiring Fund’s prospectus does not disclose fixed-income risk, but it does include market risk and loans and other indebtedness risk, both of which together include substantially similar risk disclosure to the Acquired Fund’s fixed-income risk. Similarly, the Acquired Fund’s prospectus includes financials sector risk, while the Acquiring Fund includes industry and sector risk. The risk profile is still substantially similar because the industry and sector risk is sufficiently broad as to encompass the risk of the Fund investing in a particular sector or industry, which would include the risk of investing in the financials sector. In addition, the Acquired Fund’s prospectus includes US government securities risk, while the Acquiring Fund’s prospectus discloses government and regulatory risk, which generally relates to US government risk. The Acquired Fund’s prospectus includes portfolio turnover risk and limited number of securities risk, while the Acquiring Fund’s prospectus does not include similar risk.

Even though the Acquired Fund and Acquiring Fund share many of the same types of risks, the degree of such risks may vary.  Each Fund’s relative risk/return profile cannot be determined by the following risk descriptions and comparisons alone. However, the Acquired Fund and Acquiring Fund share a substantially similar risk/return profile.

Market risk. (Acquiring Fund) The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Financials sector risk. (Acquired Fund) The risk that the value of a fund’s shares will be affected by factors particular to the financials and related sectors (such as government regulation) and may fluctuate more widely than that of a fund that invests in a broad range of sectors.

Fixed income risk. (Acquired Fund)  The risk that bonds may decrease in value if interest rates increase; an issuer may not be able to make principal and interest payments when due; a bond may be prepaid prior to maturity; and, in the case of high yield bonds (“junk bonds”), such bonds may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates due to the current period of historically low interest rates.

Interest rate risk. (Acquired Fund and Acquiring Fund) The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Credit risk. (Acquired Fund and Acquiring Fund) The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

Industry and sector risk. (Acquiring Fund)  The risk that the value of securities in a particular industry or sector (such as banking) will decline because of changing expectations for the performance of that industry or sector.

High yield (junk bond) risk. (Acquired Fund and Acquiring Fund) The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

Loans and other indebtedness risk. (Acquiring Fund)  The risk that a fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower and the lending institution. A fund’s ability to sell its loans or to realize their full value upon sale may also be impaired due to the lack of an active trading market, irregular trading activity, wide bid/ask spreads, contractual restrictions, and extended trade settlement periods. In addition, certain loans in which a fund invests may not be considered securities. A fund therefore may not be able to rely upon the anti-fraud provisions of the federal securities laws with respect to these investments.

Limited number of securities risk. (Acquired Fund) The possibility that a single security’s increase or decrease in value may have a greater impact on a fund’s value and total return because the fund may hold larger positions in fewer securities than other funds. In addition, a fund that holds a limited number of securities may be more volatile than those funds that hold a greater number of securities.

Foreign risk. (Acquired Fund and Acquiring Fund)  The risk that foreign securities (particularly in emerging markets) may be adversely affected by political instability, changes in currency exchange rates, inefficient markets and higher transaction costs, foreign economic conditions, the imposition of economic or trade sanctions, or inadequate or different regulatory and accounting standards.

Portfolio turnover risk. (Acquired Fund) High portfolio turnover rates may increase a fund’s transaction costs and lower returns.

IBOR risk. (Acquired Fund and Acquiring Fund) The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average

(EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

Liquidity risk. (Acquired Fund and Acquiring Fund)  The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Government and regulatory risk. (Acquiring Fund)  The risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance.

US government securities risk  (Acquired Fund) The risk that certain US government securities, such as securities issued by Fannie Mae, Freddie Mac and the FHLB, are not backed by the full faith and credit of the US government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury.

Active management and selection risk. (Acquired Fund and Acquiring Fund) The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions.  Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

REORGANIZATION OF DELAWARE IVY LIMITED-TERM BOND FUND INTO DELAWARE LIMITED-TERM DIVERSIFIED INCOME FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have different investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” and neither Fund will concentrate its investments in any one industry.

The investment strategies of the Funds are similar in some ways, but also differ in certain respects.

Under normal circumstances, each Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in investment grade fixed income securities, including, but not limited to, fixed income securities issued or guaranteed by the US government, its agencies or instrumentalities, and US corporations (80% policy). Each Fund’s 80% policy is nonfundamental and therefore, may be changed without shareholder approval.

Both Funds may also invest up to 20% of their respective net assets in below-investment grade securities (also known as high yield or “junk” bonds). In addition, each Fund may invest up to 30% of its net assets in foreign securities, including up to 10% of its net assets in securities of issuers located in emerging markets. The Acquiring Fund’s total non-US dollar currency exposure will be limited, in the aggregate, to no more than 10% of its net assets.

Both Funds may also invest in mortgage-backed securities issued or guaranteed by the US government, its agencies or instrumentalities, government-sponsored corporations, and mortgage-backed securities issued by certain private, nongovernment entities; and securities that are backed by assets such as receivables on home equity and credit card loans, automobile, mobile home, recreational vehicle and other loans, wholesale dealer floor plans, and leases. Both Funds will maintain an average effective duration from one to three years.

Each Fund may use a wide range of derivatives instruments, typically including options, futures contracts, options on futures contracts, forward foreign currency contracts and swaps.  The Funds will use derivatives for both hedging and nonhedging purposes. Each Fund will not use derivatives for reasons inconsistent with its investment objective and will limit its respective investments in derivatives instruments to 20% of its net assets.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The principal investment risks for the Acquired Fund and Acquiring Fund are substantially similar but not identical. Both Funds are subject to interest rate risk, mortgage-back and asset-backed securities risk, credit risk, prepayment risk, IBOR risk, and active management and selection risk.

Although there are certain risks that are labeled differently in the prospectuses for the Acquired Fund and the Acquiring Fund, many of them relate to the same or similar risks. For example, the Acquired Fund’s prospectus discloses that it is subject to fixed income risk. The Acquiring Fund’s prospectus does not disclose fixed-income risk, but it does include market risk, credit risk and interest rate risk, all of which together include substantially similar risk disclosure to the Acquired Fund’s fixed-income risk.

Similarly, the Acquired Fund’s prospectus includes US government securities risk, while the Acquiring Fund’s prospectus discloses Government and regulatory risk, which generally relates to US government risk. The Acquiring Fund’s prospectus discloses liquidity risk, derivatives risk, leveraging risk, foreign risk, and valuation risk, which, while not disclosed in the Acquiring Fund’s prospectus, are also potentially applicable for Acquiring Fund based on its investment strategies, perhaps to a different degree.

Even though the Acquired Fund and Acquiring Fund share many of the same types of risks, the degree of such risks may vary.  Each Fund’s relative risk/return profile cannot be determined by the following risk descriptions and comparisons alone. However, the Acquired Fund and Acquiring Fund share a similar risk/return profile.

Fixed income risk. (Acquired Fund) The risk that bonds may decrease in value if interest rates increase; an issuer may not be able to make principal and interest payments when due; a bond may be prepaid prior to maturity; and, in the case of high yield bonds (“junk bonds”), such bonds may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Interest rate risk. (Acquired and Acquiring Fund) The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

Credit risk. (Acquired and Acquiring Fund)  The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

High yield (junk bond) risk. (Acquiring Fund) The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

Prepayment risk. (Acquired and Acquiring Fund) The risk that the principal on a bond that is held by a fund will be prepaid prior to maturity at a time when interest rates are lower than what that bond was paying. A fund may then have to reinvest that money at a lower interest rate.

Liquidity risk. (Acquiring Fund) The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Derivatives risk. (Acquiring Fund) Derivatives contracts, such as futures, forward foreign currency contracts, options, and swaps, may involve additional expenses (such as the payment of premiums) and are subject to significant loss if a security, index, reference rate, or other asset or market factor to which a derivatives contract is associated, moves in the opposite direction from what the Manager anticipated. When used for hedging, the change in value of the derivatives instrument may also not correlate specifically with the currency, rate, or other risk being hedged, in which case a fund may not realize the intended benefits. Derivatives contracts are also subject to the risk that the counterparty may fail to perform its obligations under the contract due to, among other reasons, financial difficulties (such as a bankruptcy or reorganization).

Mortgage-backed and asset-backed securities risk (Acquired and Acquiring Fund) The risk that the principal on mortgage-backed or asset-backed securities may be prepaid at any time, which will reduce the yield and market value. If interest rates fall, the rate of prepayments tends to increase as borrowers are motivated to pay off debt and refinance at new lower rates. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, a fund that holds mortgage-related securities may exhibit additional volatility.

Leveraging risk. (Acquiring Fund) The risk that certain fund transactions, such as reverse repurchase agreements, short sales, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivatives instruments, may give rise to leverage, causing a fund to be more volatile than if it had not been leveraged, which may result in increased losses to the fund.

Foreign risk. (Acquiring Fund) The risk that foreign securities (particularly in emerging markets) may be adversely affected by political instability, changes in currency exchange rates, inefficient markets and higher transaction costs, foreign economic or government conditions, the imposition of economic and/or trade sanctions, inadequate or different regulatory and accounting standards, and the possibility that significant events in foreign markets, including broad market moves, may affect the value of fund shares.

Valuation risk. (Acquiring Fund) The risk that a less liquid secondary market may make it more difficult for a fund to obtain precise valuations of certain securities in its portfolio.

IBOR risk. (Acquired and Acquiring Fund) The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

US government securities risk. (Acquired Fund) The risk that certain US government securities, such as securities issued by Fannie Mae, Freddie Mac and the FHLB, are not backed by the full faith and credit of the US government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury.

Government and regulatory risk. (Acquiring Fund) The risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance.

Active management and selection risk. (Acquired and Acquiring Fund) The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions.  Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

REORGANIZATION OF DELAWARE IVY STRATEGIC INCOME FUND INTO DELAWARE STRATEGIC INCOME FUND

Investment Objectives.  The Acquired Fund and Acquiring Fund have similar, but not identical, investment objectives, as described in each of their Prospectuses, and included below. Each Fund’s investment objective is nonfundamental, and may be changed without shareholder approval.

Principal Investment Strategies. The Acquired Fund and Acquiring Fund have similar, but not identical, principal investment strategies, as described in each of their Prospectuses, and included below. 

Each Fund is classified as “diversified” under applicable federal law and neither Fund will concentrate its investments in any one industry.

Principal Investment Risks. Investing in any mutual fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in a Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio.  An investment in the Fund may not be appropriate for all investors. Each Fund’s principal risks, as listed in their Prospectuses, are included below.

The principal investment risks for the Acquired Fund and Acquiring Fund are substantially similar, but have differences. Both Funds are subject to market risk, interest rate risk, high yield (junk bond) risk, IBOR risk, liquidity risk, credit risk, loans and other indebtedness risk, adjustable rate securities risk, foreign and emerging markets risk, derivatives risk, leveraging risk, mortgage-backed and asset-backed securities risk, prepayment risk, valuation risk, portfolio turnover risk, government and regulatory risk, and active management and selection risk.

Even though the Acquired Fund and Acquiring Fund share many of the same types of risks, the degree of such risks may vary. The Acquiring Fund is also subject to currency risk and US government securities risk. Each Fund’s relative risk/return profile cannot be determined by the following risk descriptions and comparisons alone. However, the Acquired Fund and Acquiring Fund share a substantially similar risk/return profile.

Market risk.  (Acquired Fund and Acquiring Fund) The risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Interest rate risk. (Acquired Fund and Acquiring Fund)   The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.

 High yield (junk bond) risk. (Acquired Fund and Acquiring Fund)  The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.

IBOR risk. (Acquired Fund and Acquiring Fund) The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.

Liquidity risk. (Acquired Fund and Acquiring Fund) The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.

Credit risk. (Acquired Fund and Acquiring Fund)  The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.

Loans and other indebtedness risk. (Acquired Fund and Acquiring Fund)   The risk that a fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower and the lending institution. A fund’s ability to sell its loans or to

realize their full value upon sale may also be impaired due to the lack of an active trading market, irregular trading activity, wide bid/ask spreads, contractual restrictions, and extended trade settlement periods. In addition, certain loans in which a fund invests may not be considered securities. A fund therefore may not be able to rely upon the anti-fraud provisions of the federal securities laws with respect to these investments.

Adjustable rate securities risk. (Acquired Fund and Acquiring Fund)  During periods of rising interest rates, because changes in interest rates on adjustable rate securities may lag behind changes in market rates, the value of such securities may decline until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on adjustable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.

Foreign and emerging markets risk. (Acquired Fund and Acquiring Fund) The risk that international investing (particularly in emerging markets) may be adversely affected by political instability; changes in currency exchange rates; inefficient markets and higher transaction costs; foreign economic conditions; the imposition of economic or trade sanctions; or inadequate or different regulatory and accounting standards. The risk associated with international investing will be greater in emerging markets than in more developed foreign markets because, among other things, emerging markets may have less stable political and economic environments. In addition, there often is substantially less publicly available information about issuers and such information tends to be of a lesser quality. Economic markets and structures tend to be less mature and diverse and the securities markets may also be smaller, less liquid, and subject to greater price volatility.

Currency risk. (Acquiring Fund)   The risk that fluctuations in exchange rates between the US dollar and foreign currencies and between various foreign currencies may cause the value of an investment to decline.

Derivatives risk. (Acquired Fund and Acquiring Fund)  Derivatives contracts, such as futures, forward foreign currency contracts, options, and swaps, may involve additional expenses (such as the payment of premiums) and are subject to significant loss if a security, index, reference rate, or other asset or market factor to which a derivatives contract is associated, moves in the opposite direction from what the portfolio manager anticipated. When used for hedging, the change in value of the derivatives instrument may also not correlate specifically with the currency, rate, or other risk being hedged, in which case a fund may not realize the intended benefits. Derivatives contracts are also subject to the risk that the counterparty may fail to perform its obligations under the contract due to, among other reasons, financial difficulties (such as a bankruptcy or reorganization).

Leveraging risk. (Acquired Fund and Acquiring Fund)  The risk that certain fund transactions, such as reverse repurchase agreements, short sales, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivatives instruments, may give rise to leverage, causing a fund to be more volatile than if it had not been leveraged, which may result in increased losses to the fund.

Mortgage-backed and asset-backed securities risk. (Acquired Fund and Acquiring Fund)  The risk that the principal on mortgage-backed or asset-backed securities may be prepaid at any time, which will reduce the yield and market value.

Prepayment risk. (Acquired Fund and Acquiring Fund)  The risk that the principal on a bond that is held by a fund will be prepaid prior to maturity at a time when interest rates are lower than what that bond was paying. A fund may then have to reinvest that money at a lower interest rate.

Valuation risk. (Acquired Fund and Acquiring Fund)  The risk that a less liquid secondary market may make it more difficult for a fund to obtain precise valuations of certain securities in its portfolio.

Portfolio turnover risk. (Acquired Fund and Acquiring Fund)  High portfolio turnover rates may increase a fund’s transaction costs and lower returns.

Government and regulatory risk. (Acquired Fund and Acquiring Fund)  The risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance.

US government securities risk. (Acquiring Fund)  The risk that certain US government securities, such as securities issued by Fannie Mae, Freddie Mac and the FHLB, are not backed by the “faith and credit” of the US government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the US Treasury.

Active management and selection risk. (Acquired Fund and Acquiring Fund) The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.

Fundamental Investment Restrictions.  Each Fund has adopted the following fundamental investment restrictions, which cannot be changed without approval by the holders of a “majority” of the Fund’s outstanding shares, which is a vote by the holders of the lesser of (i) 67% or more of the voting securities present in person or by proxy at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy; or (ii) more than 50% of the outstanding voting securities.

The Funds have adopted materially similar, but not identical, fundamental investment restrictions. Certain differences are summarized below. Please see each Fund’s SAI.

For the Acquired Fund, an investment policy or restriction that states a maximum percentage of the Acquired Fund’s assets that may be so invested or prescribes quality standards typically is applied immediately after, and based on, the Acquired Fund’s acquisition of an asset. Accordingly, a subsequent change in the asset’s value, net assets, or other circumstances will not be considered when determining whether the investment complies with the Acquired Fund’s investment policies and restrictions.

For the Acquiring Fund, except for the Acquiring Fund’s policy with respect to borrowing, any investment restriction or limitation that involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or a utilization of assets and such excess results therefrom.

INFORMATION ABOUT THE FUNDS

What are the fees and expenses of each Fund and what are the anticipated fees and expenses after the Reorganization?

After factoring in applicable expense waivers and the effect of advisory fee breakpoints, it is anticipated that each Acquired Fund shareholder will pay comparable or lower annual fund expenses as Acquiring Fund shareholders after the applicable Reorganization, with the exception of Class C shares of Delaware National High-Yield Municipal Bond Fund, which has a total expense ratio that is 2 basis points higher than Class C shares of Delaware Ivy Municipal High Income Fund. The tables below describe the fees and expenses that you may pay if you buy, hold and sell shares of the Funds, depending on the share class you hold, followed by those anticipated to be charged by the Acquiring Fund shares after the Reorganization.  You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.  The operating expenses shown for the Funds are based on expenses incurred as of the dates listed below:

REORGANIZATION OF DELAWARE IVY MUNICIPAL BOND FUND INTO DELAWARE TAX-FREE USA FUND

¹ For Class A shares, a 1% contingent deferred sales charge (CDSC) is only imposed on Class A shares that were purchased prior to July 1, 2021 at net asset value (NAV) for $250,000 or more that are subsequently redeemed within 12 months of purchase, or on shares that were purchased after July 1, 2021 at net asset value (NAV) for $250,000 or more that are subsequently redeemed within 18 months of purchase. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

² Delaware Management Company (Manager), the Fund's investment manager, Delaware Distributors, L.P. (Distributor), the Fund's distributor, and/or Delaware Investments Fund Services Company (DIFSC), the Fund's transfer agent, have contractually agreed to waive all or a portion of fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.55% of the Fund's average daily net assets from July 29, 2022 through July 29, 2023. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

³  Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge (CDSC).

⁴  The Fund’s investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.55% of the Fund’s average daily net assets from December 29, 2022 through December 29, 2023. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund. The Fund’s Class A shares also are subject to a blended 12b-1 fee of 0.10% on all shares acquired prior to June 1, 1992 and 0.25% on all shares acquired on or after June 1, 1992.

⁵  The Fund’s investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.55% of the Fund’s average daily net assets through December 30, 2024. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund. The Fund’s Class A shares also are subject to a blended 12b-1 fee of 0.10% on all shares acquired prior to June 1, 1992 and 0.25% on all shares acquired on or after June 1, 1992.

REORGANIZATION OF DELAWARE IVY MUNICIPAL HIGH INCOME FUND INTO DELAWARE NATIONAL HIGH-YIELD MUNICIPAL BOND FUND

REORGANIZATION OF DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND INTO DELAWARE TAX-FREE CALIFORNIA FUND

REORGANIZATION OF DELAWARE IVY CORPORATE BOND FUND AND DELAWARE IVY CROSSOVER CREDIT FUND INTO DELAWARE CORPORATE BOND FUND

operating expenses from exceeding 0.57% of the Fund’s average daily net assets for each class listed above, from November 28, 2022 through November 28, 2023. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

7

The Fund’s investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.57% of the Fund’s average daily net assets for each above-listed class, through November 28, 2024. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

REORGANIZATION OF DELAWARE IVY LIMITED-TERM BOND FUND INTO DELAWARE LIMITED-TERM DIVERSIFIED INCOME FUND

REORGANIZATION OF DELAWARE IVY STRATETIC INCOME FUND INTO DELAWARE STRATEGIC INCOME FUND

How can I compare the costs of investing in Acquired Fund shares with the cost of investing in Acquiring Fund shares of the comparable class?

The examples below are intended to help you compare the costs of investing in Acquired Fund shares with the cost of investing in Acquiring Fund shares of the comparable class, both before and after the Reorganization.  The examples assume that you invest $10,000 in a Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The examples also assume that your investment has a 5% return each year and reflect the Manager’s applicable expense waivers and reimbursements for the 1-year contractual period and the total operating expenses without waivers for years 2 through 10.  Any investment advisory fee waiver for the Acquiring Funds after the Reorganization is only reflected in the examples through the waiver period.  Although your actual costs may be higher or lower, based on these assumptions, the costs would be:

REORGANIZATION OF DELAWARE IVY MUNICIPAL BOND FUND INTO DELAWARE TAX-FREE USA FUND

REORGANIZATION OF DELAWARE IVY MUNICIPAL HIGH INCOME FUND INTO DELAWARE NATIONAL HIGH-YIELD MUNICIPAL BOND FUND

REORGANIZATION OF DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND INTO DELAWARE TAX-FREE CALIFORNIA FUND

REORGANIZATION OF DELAWARE IVY CORPORATE BOND FUND INTO DELAWARE CORPORATE BOND FUND

REORGANIZATION OF DELAWARE IVY CROSSOVER CREDIT FUND INTO DELAWARE CORPORATE BOND FUND

REORGANIZATION OF DELAWARE IVY LIMITED-TERM BOND FUND INTO DELAWARE LIMITED-TERM DIVERSIFIED INCOME FUND

REORGANIZATION OF DELAWARE IVY STRATEGIC INCOME FUND INTO DELAWARE STRATEGIC INCOME FUND

What are the general tax consequences of the Reorganizations?

The Reorganizations are each intended to qualify as a tax-free reorganization for federal income tax purposes and the delivery of a legal opinion to that effect is a condition of closing of the Reorganizations (although there can be no assurance that the Internal Revenue Service (IRS) will adopt a similar position). This means that, subject to the limited exceptions described below under the heading “What are the tax consequences of each Reorganization,”  Acquiring Fund shareholders will not recognize any gain or loss for federal income tax purposes as a result of the exchange of all of their Acquired Fund shares for Acquiring Fund shares pursuant to the Reorganizations.  Prior to the closing of the Reorganizations, each Acquired Fund will distribute to its shareholders, in one or more distributions, all of its income and gains (net of available capital loss carryovers) not previously distributed for taxable years ending on or prior to the date of closing of the Reorganization.  You should consult your tax advisor regarding the effect, if any, of the distribution(s) and Reorganizations in light of your individual circumstances.  You should also consult your tax advisor about the state and local tax consequences of the Reorganizations, if any, because the information about tax consequences in this document relates to the federal income tax consequences of the Reorganizations only.   For more information, please see the section “What are the tax consequences of each Reorganization” below.

Who manages the Funds?

The Funds’ investment manager is DMC, located at 100 Independence, 610 Market Street, Philadelphia, PA   19106-2354. Together, the Manager and the subsidiaries of Macquarie Management Holdings, Inc. (MMHI) manage, as of February 28, 2023, approximately $184.0 billion in assets, including mutual funds, separate accounts, and other investment vehicles. The Manager and its predecessors have been managing Delaware Funds since 1938. The Manager is a series of Macquarie Investment Management Business Trust (a Delaware statutory trust), which is a subsidiary of MMHI. MMHI is a wholly owned subsidiary of Macquarie Group Limited. The Manager makes investment decisions for the Funds, manages the Funds’ business affairs, and provides daily administrative services. 

For each Fund, the Manager’s fee is based on a percentage of average net assets as described further in the Fund’s SAI.  For its services to each Acquiring Fund, the Manager was paid an aggregate fee, net of fee waivers (if applicable), of average daily net assets during the last fiscal year, as follows:

A discussion of the basis for the Board’s approval of each Acquired Fund’s investment advisory contract is available, for Delaware Ivy Corporate Bond Fund, Delaware Ivy California Municipal High Income Fund, Delaware Ivy Crossover Credit Fund, and Delaware Ivy Strategic Income Fund, in each Fund’s annual report to shareholders for the fiscal year ended September 30, 2022; and, for Delaware Ivy Municipal Bond Fund, Delaware Ivy Municipal High Income Fund, and Delaware Ivy Limited-Term Bond Fund, in each Fund’s semiannual report to shareholders for the period ended September 30, 2022.

A discussion of the basis for the Board’s approval of each Acquiring Fund’s investment advisory contract is available, for Delaware Strategic Income Fund and Delaware Corporate Bond Fund, in each Fund’s semiannual report to shareholders for the period ended January 31, 2023; for Delaware Tax-Free USA Fund, Delaware National High-Yield Municipal Bond Fund, and Delaware Tax-Free California Fund, in each Fund’s annual report to shareholders for the fiscal year ended August 31, 2022; and for the Delaware Limited-Term Diversified Income Fund, in the Fund’s annual report to shareholders for the fiscal year ended December 31, 2022.

The Manager may seek investment advice and recommendations from its Affiliated Sub-Advisors (as defined above). The Manager may also permit these Affiliated Sub-Advisors to execute Fund security trades on behalf of the Manager and exercise investment discretion for securities in certain markets where the Manager believes it will be beneficial to utilize an Affiliated Sub-Advisor's specialized market knowledge.

Portfolio Managers of the Funds

REORGANIZATION OF DELAWARE IVY MUNICIPAL BOND FUND INTO DELAWARE TAX-FREE USA FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, Gregory A. Gizzi, Stephen J. Czepiel and Jake van Roden. Mr. Gizzi, Mr. Czepiel, and Mr. van Roden are the lead portfolio managers primarily responsible for the day-to-day management of the Funds.

Gregory A. Gizzi, Managing Director, Head of US Fixed Income and Head of Municipal Bonds, Senior Portfolio Manager. Mr. Gizzi has managed the Acquiring Fund since December of 2012 and the Acquired Fund since November 2021.

REORGANIZATION OF DELAWARE IVY MUNICIPAL HIGH INCOME FUND INTO DELAWARE NATIONAL HIGH-YIELD MUNICIPAL BOND FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, Gregory A. Gizzi, Stephen J. Czepiel and Jake van Roden. Mr. Gizzi, Mr. Czepiel, and Mr. van Roden are the lead portfolio managers primarily responsible for the day-to-day management of the Funds.

Gregory A. Gizzi, Managing Director, Head of US Fixed Income and Head of Municipal Bonds, Senior Portfolio Manager. Mr. Gizzi has managed the Acquiring Fund since December of 2012 and the Acquired Fund since November 2021.

Stephen J. Czepiel, Managing Director, Head of Municipal Bonds Portfolio Management, Senior Portfolio Manager. Mr. Czepiel has managed the Acquiring Fund since July 2007 and the Acquired Fund since November 2021.

Jake van Roden, Managing Director, Senior Portfolio Manager. Mr. van Roden has managed the Acquiring Fund since February 2019 and the Acquired Fund since November 2021.

REORGANIZATION OF DELAWARE IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND INTO DELAWARE TAX-FREE CALIFORNIA FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, Gregory A. Gizzi, Stephen J. Czepiel and Jake van Roden. Mr. Gizzi, Mr. Czepiel, and Mr. van Roden are the lead portfolio managers primarily responsible for the day-to-day management of the Funds.

Gregory A. Gizzi, Managing Director, Head of US Fixed Income and Head of Municipal Bonds, Senior Portfolio Manager. Mr. Gizzi has managed the Acquiring Fund since December of 2012 and the Acquired Fund since November 2021.

Stephen J. Czepiel, Managing Director, Head of Municipal Bonds Portfolio Management, Senior Portfolio Manager. Mr. Czepiel has managed the Acquiring Fund since July 2007 and the Acquired Fund since November 2021.

Jake van Roden, Managing Director, Senior Portfolio Manager. Mr. van Roden has managed the Acquiring Fund since December 2017 and the Acquired Fund since November 2021.

REORGANIZATION OF DELAWARE IVY CORPORATE BOND FUND INTO DELAWARE CORPORATE BOND FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, Michael G. Wildstein, Wayne A. Anglace, CFA and Kashif Ishaq. Mr. Wildstein, Mr. Anglace and Mr. Ishaq are the lead portfolio managers primarily responsible for the day-to-day management of the Funds. When making decisions for the Funds, Mr. Wildstein, Mr. Anglace and Mr. Ishaq regularly consult with other investment professionals.

Michael G. Wildstein, Senior Managing Director, Head of US Credit and Insurance. Mr. Wildstein has managed the Acquiring Fund since November 2014 and the Acquired Fund since November 2021.

Wayne A. Anglace, CFA, Managing Director, Senior Portfolio Manager. Mr. Anglace has managed the Acquiring Fund since July 2016 and the Acquired Fund since November 2021.

Kashif Ishaq, Managing Director, Senior Portfolio Manager. Mr. Ishaq has managed the Acquiring Fund since November 2013 and the Acquired Fund since November 2021.

REORGANIZATION OF DELAWARE IVY CROSSOVER CREDIT FUND INTO DELAWARE CORPORATE BOND FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, Michael G. Wildstein, Wayne A. Anglace, CFA and Kashif Ishaq. Mr. Wildstein, Mr. Anglace and Mr. Ishaq are the lead portfolio managers primarily responsible for the day-to-day management of the Funds. When making decisions for the Funds, Mr. Wildstein, Mr. Anglace and Mr. Ishaq regularly consult with other investment professionals.

Michael G. Wildstein, Senior Managing Director, Head of US Credit and Insurance. Mr. Wildstein has managed the Acquiring Fund since November 2014 and the Acquired Fund since November 2021.

Wayne A. Anglace, CFA, Managing Director, Senior Portfolio Manager. Mr. Anglace has managed the Acquiring Fund since July 2016 and the Acquired Fund since November 2021.

Kashif Ishaq, Managing Director, Senior Portfolio Manager. Mr. Ishaq has managed the Acquiring Fund since November 2013 and the Acquired Fund since November 2021.

REORGANIZATION OF DELAWARE IVY LIMITED-TERM BOND FUND INTO DELAWARE LIMITED-TERM DIVERSIFIED INCOME FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, J. David Hillmeyer, CFA and Daniela Mardarovici, CFA. Mr. Hillmeyer and Ms. Mardarovici are the lead portfolio managers primarily responsible for the day-to-day management of the Funds. When making decisions for the Funds, Mr. Mr. Hillmeyer and Ms. Mardarovici regularly consult with other investment professionals.

J. David Hillmeyer, CFA, Senior Managing Director, Co-Head of US Multisector Fixed Income. Mr. Hillmeyer has managed the Acquiring Fund since September 2020 and the Acquired Fund since November 2021.

Daniela Mardarovici, Managing Director, Co-Head of US Multisector Fixed Income. Ms. Mardarovici has managed the Acquiring Fund since September 2020 and the Acquired Fund since November 2021.

REORGANIZATION OF DELAWARE IVY STRATEGIC INCOME FUND INTO DELAWARE STRATEGIC INCOME FUND

The Acquired Fund and Acquiring Fund share the same portfolio managers, J. David Hillmeyer, CFA and Daniela Mardarovici, CFA. Mr. Hillmeyer and Ms. Mardarovici are the lead portfolio managers primarily responsible for the day-to-day management of the Funds. When making decisions for the Funds, Mr. Hillmeyer and Ms. Mardarovici regularly consult with other investment professionals.

J. David Hillmeyer, CFA, Senior Managing Director, Co-Head of US Multisector Fixed Income. Mr. Hillmeyer has managed the Acquiring Fund since November 2011 and the Acquired Fund since November 2021.

Daniela Mardarovici, Managing Director, Co-Head of US Multisector Fixed Income. Ms. Mardarovici has managed the Acquiring Fund since March 2019 and the Acquired Fund since November 2021.

Each Acquiring Fund’s portfolio managers will continue to manage the Fund after the Reorganizations.

The SAIs for the Funds provide additional information about each portfolio manager’s compensation, other accounts managed by each portfolio manager, and each portfolio manager’s ownership of Fund shares.  For information on how to obtain a copy of the SAIs for the Funds, please see the section entitled, “More Information about the Funds.”

Manager of Managers Structure

The Funds and the Manager have received an exemptive order from the SEC to operate under a manager of managers structure that permits the Manager, with the approval of the Funds’ Boards, to appoint and replace both affiliated and unaffiliated sub-advisors, and to enter into and make material amendments to the related sub-advisory contracts on behalf of the Funds without shareholder approval (Manager of Managers Structure).  Under the Manager of Managers Structure, the Manager has ultimate responsibility, subject to oversight by the Boards, for overseeing the Funds’ sub-advisors and recommending to the Boards their hiring, termination, or replacement.

The Manager of Managers Structure enables the Funds to operate with greater efficiency and without incurring the expense and delays associated with obtaining shareholder approvals for matters relating to sub-advisors or sub-advisory agreements.  The Manager of Managers Structure does not permit an increase in the overall management and advisory fees payable by the Funds without shareholder approval.  Shareholders will be notified of the hiring of any new sub-advisor within 90 days of the hiring.

The Funds and the Manager also have an exemptive order from the SEC that allows the approval of a new sub-advisor to be taken at a Board of Trustees meeting held via any means of communication that allows the Trustees to hear each other simultaneously during the meeting. If a new unaffiliated sub-adviser is hired for the Funds, shareholders will receive information about the new sub-advisor within 90 days of the change.

How do the performance records of the Funds compare?

The bar charts and tables below provide some indication of the risks of investing in the Funds by showing changes in each Fund’s performance from year to year and by showing how each Fund’s average annual total returns for the 1-, 5-, and 10-year or lifetime periods compare with those of a broad measure of market performance.  Each Fund’s past performance (before and after taxes) is not necessarily an indication of how it will perform in the future. The returns reflect any expense caps in effect during these periods. The returns would be lower without the expense caps. You may obtain the Funds’ most recently available month-end performance by calling 800 523‑1918 or by visiting our website at delawarefunds.com/performance.

REORGANIZATION OF DELAWARE IVY MUNICIPAL BOND FUND INTO DELAWARE TAX-FREE USA FUND

On April 30, 2021, the Acquired Fund became part of Delaware Funds and DMC became the Fund’s investment manager. The returns shown from before April 30, 2021 are from the Acquired Fund’s prior investment manager.

Effective November 15, 2021, the Acquired Fund changed its investment strategy. Performance prior to     November 15, 2021 reflects the Acquired Fund’s former strategy; its performance may have differed if the Fund’s current strategy had been in place.

Acquired Fund

Average annual total returns for periods ended December 31, 2022

After-tax performance is presented only for Class A shares of the Acquired Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor’s individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax-advantaged investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts (IRAs). The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the periods presented and do not reflect the impact of state and local taxes.