Item 1. Reports to Stockholders
Annual report
Fixed income mutual funds
Delaware Tax-Free Arizona Fund
Delaware Tax-Free California Fund
Delaware Tax-Free Colorado Fund
Delaware Tax-Free Idaho Fund
Delaware Tax-Free New York Fund
Delaware Tax-Free Pennsylvania Fund
August 31, 2020
Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up at delawarefunds.com/edelivery. If you own these shares through a financial intermediary, you may contact your financial intermediary.
You may elect to receive paper copies of all future shareholder reports free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 800 523-1918. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the Delaware Funds® by Macquarie or your financial intermediary.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of in the mail. Visit delawarefunds.com/edelivery.
Experience Delaware Funds® by Macquarie
Macquarie Investment Management (MIM) is a global asset manager with offices in the United States, Europe, Asia, and Australia. As active managers, we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund at delawarefunds.com/literature.
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Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. MIM is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
The Funds are governed by US laws and regulations.
Table of contents
Unless otherwise noted, views expressed herein are current as of August 31, 2020, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2020 Macquarie Management Holdings, Inc.
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| Portfolio management review |
| Delaware Funds® by Macquarie state tax-free funds | | September 8, 2020 (Unaudited) |
Performance preview (for the year ended August 31, 2020)
| | | | |
| Delaware Tax-Free Arizona Fund (Institutional Class shares) | | 1-year return | | +2.05% |
| Delaware Tax-Free Arizona Fund (Class A shares) | | 1-year return | | +1.79% |
| Bloomberg Barclays Municipal Bond Index (benchmark) | | 1-year return | | +3.24% |
| Lipper Other States Municipal Debt Funds Average | | 1-year return | | +2.14% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Arizona Fund, please see the table on page 10.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Other States Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation on a specified city or state basis.
Please see page 14 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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| Delaware Tax-Free California Fund (Institutional Class shares) | | 1-year return | | +1.84% |
| Delaware Tax-Free California Fund (Class A shares) | | 1-year return | | +1.59% |
| Bloomberg Barclays Municipal Bond Index (benchmark) | | 1-year return | | +3.24% |
| Lipper California Municipal Debt Funds Average | | 1-year return | | +1.62% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free California Fund, please see the table on page 15.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper California Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in California (double tax-exempt) or a city in California (triple tax-exempt).
Please see page 19 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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| Delaware Tax-Free Colorado Fund (Institutional Class shares) | | 1-year return | | +2.14% |
| Delaware Tax-Free Colorado Fund (Class A shares) | | 1-year return | | +1.88% |
| Bloomberg Barclays Municipal Bond Index (benchmark) | | 1-year return | | +3.24% |
| Lipper Other States Municipal Debt Funds Average | | 1-year return | | +2.14% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Colorado Fund, please see the table on page 20.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Other States Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation on a specified city or state basis.
Please see page 24 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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| Portfolio management review |
Delaware Funds® by Macquarie state tax-free funds | | |
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| Delaware Tax-Free Idaho Fund (Institutional Class shares) | | 1-year return | | +2.02% |
| Delaware Tax-Free Idaho Fund (Class A shares) | | 1-year return | | +1.77% |
| Bloomberg Barclays Municipal Bond Index (benchmark) | | 1-year return | | +3.24% |
| Lipper Other States Municipal Debt Funds Average | | 1-year return | | +2.14% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Idaho Fund, please see the table on page 25.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Other States Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation on a specified city or state basis.
Please see page 29 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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| Delaware Tax-Free New York Fund (Institutional Class shares) | | 1-year return | | +2.03% |
| Delaware Tax-Free New York Fund (Class A shares) | | 1-year return | | +1.68% |
| Bloomberg Barclays Municipal Bond Index (benchmark) | | 1-year return | | +3.24% |
| Lipper New York Municipal Debt Funds Average | | 1-year return | | +0.95% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free New York Fund, please see the table on page 30.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper New York Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in New York (double tax-exempt) or a city in New York (triple tax-exempt).
Please see page 34 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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| Delaware Tax-Free Pennsylvania Fund (Institutional Class shares) | | 1-year return | | +1.84% |
| Delaware Tax-Free Pennsylvania Fund (Class A shares) | | 1-year return | | +1.72% |
| Bloomberg Barclays Municipal Bond Index (benchmark) | | 1-year return | | +3.24% |
| Lipper Pennsylvania Municipal Debt Funds Average | | 1-year return | | +1.84% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Pennsylvania Fund, please see the table on page 35.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Pennsylvania Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Pennsylvania (double tax-exempt) or a city in Pennsylvania (triple tax-exempt).
Please see page 39 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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Investment objectives
Delaware Tax-Free Arizona Fund seeks as high a level of current income exempt from federal income tax and from the Arizona state personal income tax as is consistent with preservation of capital.
Delaware Tax-Free California Fund seeks as high a level of current income exempt from federal income tax and from the California state personal income tax as is consistent with preservation of capital.
Delaware Tax-Free Colorado Fund seeks as high a level of current income exempt from federal income tax and from the personal income tax in Colorado as is consistent with preservation of capital.
Delaware Tax-Free Idaho Fund seeks as high a level of current income exempt from federal income tax and from Idaho personal income taxes as is consistent with preservation of capital.
Delaware Tax-Free New York Fund seeks as high a level of current income exempt from federal income tax and from New York state personal income taxes as is consistent with preservation of capital.
Delaware Tax-Free Pennsylvania Fund seeks as high a level of current income exempt from federal income tax and from Pennsylvania state personal income tax as is consistent with preservation of capital.
Economic backdrop
For most of the first half of the fiscal year ended August 31, 2020, the US economy continued along its steady growth path with historically low unemployment. In both the third and fourth calendar quarters of 2019, the nation’s gross domestic product (GDP) – a measure of national economic output – rose by an annualized 2.1%. Meanwhile, the US jobless rate remained at or near a half-century low throughout 2019 and into 2020, reaching a low of 3.9% in September 2019.
Starting in February 2020, however, global economic conditions began to dramatically worsen as the full social and financial impact of the coronavirus pandemic became evident. Quarantine orders mounted across the country and around the world, economic activity ground to a halt, and job losses grew by the millions. US GDP shrank by an annualized 5.0% in the first quarter of 2020 and then by an annualized 31.7% in the second quarter, the worst quarterly economic contraction in US history.
Both the US Federal Reserve and the federal government took aggressive action to attempt to
ease this economic damage. In early March, the Fed cut the federal funds rate, its benchmark short-term interest rate, by 0.50 percentage points. Two weeks later, it cut the federal funds rate by another full percentage point, bringing it to essentially zero, where it stood throughout the remainder of the fiscal year. Further, in late March, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus bill focused on providing support to individuals and businesses hurt by the economic fallout.
After the United States lost 20.5 million jobs in April 2020, the US unemployment rate soared to 14.7%, the highest level seen since the Great Depression. As economies around the country gradually reopened, however, the national economic picture slowly improved. By August, the US jobless rate fell to 8.4% – still historically high, though a significant improvement from earlier in the year – as some workers returned to their positions after temporary layoffs.
Sources: US Bureau of Economic Analysis, US Bureau of Labor Statistics, and Bloomberg.
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| Portfolio management review |
| Delaware Funds® by Macquarie state tax-free funds | | |
Municipal bond market conditions
Overall, the municipal bond market, as measured by the Bloomberg Barclays Municipal Bond Index, returned 3.24% for the fiscal year ended August 31, 2020.
When describing market conditions, we can divide the fiscal year into three distinct periods. The first covers September 2019 through March 9, 2020, during which municipal bonds enjoyed solid performance amid favorable demand for tax-exempt securities, coupled with relatively limited supply. In this environment, longer-duration, lower-rated securities generally outperformed their shorter-maturity, more highly rated counterparts, as many investors accepted greater interest rate risk and credit risk in exchange for higher yields. During this period, the municipal bond market, as measured by the Bloomberg Barclays Municipal Bond Index, gained 3.04%.
Starting on March 10, however, conditions for investors in municipal bonds abruptly shifted. With mounting concern about the coronavirus, market volatility soared, liquidity dried up, and more highly leveraged institutional investors were forced to unload their municipal debt. Investors, eager for safety, bid up prices of more highly rated, shorter-term bonds, while lower-quality, longer-term issues lagged, reflecting their increased credit and duration risk. Between March 10 and April 30, the Bloomberg Barclays Municipal Bond Index declined 4.84%, with most of that loss coming during two especially difficult weeks in March. Lower-investment-grade and below-investment-grade bonds performed notably poorly during this roughly seven-week stretch, declining 11.85% and 14.00%, respectively.
Finally, between May and the end of the fiscal year on August 31, municipal securities rallied strongly, with the Bloomberg Barclays Municipal Bond Index gaining 5.29%. Better-than-expected national economic data and heightened demand for tax-exempt bonds, especially lower-rated
issues that had fallen disproportionately during the market’s earlier downturn, boosted the asset class.
Looking at the full fiscal year, the following tables indicate that bonds with intermediate maturities generally outperformed their shorter- and longer-dated counterparts, while more highly rated issues fared better than lower-rated bonds.
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| Returns by maturity | | | | |
1 year | | | 1.95 | % |
3 years | | | 2.88 | % |
5 years | | | 3.51 | % |
10 years | | �� | 3.53 | % |
22+ years | | | 3.05 | % |
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| Returns by credit rating | | | | |
AAA | | | 4.03 | % |
AA | | | 3.58 | % |
A | | | 2.75 | % |
BBB | | | 1.33 | % |
Source: Bloomberg.
Economic backdrop in the states
Arizona’s economy has shown some resilience relative to the national economy, even with the pandemic’s spread in the state. Its unemployment rate as of July was 10.6%, down from 12.6% in April, but above national levels. Arizona’s fiscal year 2020 revenues are expected to finish 8% below estimates due to the coronavirus, with fiscal year 2021 General Fund revenues down 7% from expectations. The two-year combined revenue loss is $1.63 billion. Arizona is getting $1.85 billion in CARES Act funding. The 2021 budget contains no new spending aside from teacher salary increases. In the second quarter of 2020, the governor added $55 million to spending for virus-related costs. (Sources: bls.gov, bea.gov, ncsl.org.)
California’s unemployment rate had been 3.9% from December 2019 to February 2020 before
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rising to 5.5% in March and 16.4% in April, then easing to 16.3% in May and 13.3% in July. Only Maine, New York, Massachusetts, Nevada, New Jersey, and Pennsylvania have higher unemployment rates. The fiscal year 2021 budget of $143 billion includes $14 billion of federal funding not yet approved. If not received by October, the state will have to cut the same amount out of the budget for the balance of the year. The 2021 budget is nearly $10 billion lower than original projections. The coronavirus pandemic has moved the state from a $17.9 billion surplus to a $16 billion deficit by fiscal year 2024, with a total of $54 billion in lost revenues due to the coronavirus. The budget surplus will be drawn over three years. The 2021 budget has personal tax revenues down 18.9% from 2020 and sales tax revenues down 17.4%. The 2021 budget has no decrease for K-12 education and community colleges but does cut university funding by $1 billion. In what could be a positive sign, state tax withholding revenues from March through June were down 3% from 2019. The state received $9.52 billion in CARES Act funding. (Sources: bls.gov, dof.ca.gov.)
Colorado’s General Fund revenue declines due to the pandemic in 2020-2022 fiscal years are $1.3 billion, $3.2 billion, and $2.4 billion, respectively. A total of $228.7 million of budget adjustments were made in the second quarter of 2020 to meet the balanced budget requirement for fiscal year 2020. Statutory budgeted reserves of 7.5% of expenditures for 2020 are $653 million below specifications at $340 million. In 2020, personal income tax revenues, sales taxes, and corporate taxes are 5.6%, 1.8%, and 37% below expectations, respectively. The state unemployment rate, which had been 2.5% for the three months before the pandemic, rose to 5.2% in March and 12.2% in April, then dropped to 10.2% in May and 7.4% in July, below national
levels. Colorado is receiving $1.67 billion in CARES Act funding. (Sources: bls.gov, bea.gov, ncsl.org.)
Idaho had several months of below 3% unemployment prior to the coronavirus. Its unemployment rate rose to 11.8% in April before falling to 8.9% in May and 5% in July, the third lowest of any state. Idaho state tax revenues in May came in $42.9 million above forecasts. The state General Fund shortfall through May was down to $313 million from $356 million a month earlier. June brought in more revenues than expected and the state rainy-day fund of $580 million will not be needed to cover any revenue shortfalls for fiscal year 2021. The governor had asked for across-the-board 1% spending cuts pre-pandemic, and while most states had pushed back their tax payment day by three months, from April 15 to July 15, Idaho moved it back only two months to keep the tax revenues in fiscal year 2020. Idaho received $1.25 billion in CARES Act funding. (Sources: bls.gov, dfm.idaho.gov.)
New York is the only state with a March 31 fiscal year, which caused immediate cuts to spending based on expected revenue losses from the coronavirus. Total revenue declines are expected to be $12 billion for fiscal year 2021 and as much as $69 billion through fiscal year 2024. Medicaid cuts for 2021 are $2.1 billion. The state is holding back aid to localities by 20%. New York is receiving 5% of the CARES Act funding ($5.2 billion), though it makes up 8% of national GDP and, at the peak, accounted for 15% of coronavirus cases. New York unemployment rose from 3.7% in February to 4.1% in March, then 15.3% in April, 14.5% in May, 15.6% in June, and 15.9% in July – the only state seeing unemployment rates higher in July than in June. New York City, which accounts for more than half of the state’s GDP, had an unemployment rate of 19.8% for July. (Sources: bls.gov, bea.gov, ncsl.org, budget.ny.gov.)
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| Portfolio management review |
| Delaware Funds® by Macquarie state tax-free funds | | |
Pennsylvania passed a five-month temporary budget for fiscal year 2021 at frozen spending levels with no tax increases to get a better handle on projected revenue losses from the coronavirus pandemic for all departments except education and health and human services, which received 12-month funding. The fiscal year 2020 budget was in a $3.2 billion deficit with revenues down 9%. Fiscal year 2021 has projected revenue declines of $4.8 billion relative to original estimates. Pennsylvania received $3.9 billion in CARES Act funding. The state deposited $250 million into its rainy-day fund for 2021, which had fallen to $22.5 million. The state unemployment rate is falling more slowly than the rest of the nation, reaching a high of 15.1% in April and dropping to only 13.7% for July, more than 3% above national levels. Prior to the pandemic, per capita income growth in the first quarter of 2020 was 1.8%. Standard & Poor’s recently changed the commonwealth’s A+ rating outlook from stable to negative due to structural budget issues. (Sources: bls.gov, bea.gov, census.gov, ncsl.org, budget.pa.gov, revenue.pa.gov.)
A consistent management approach
For all the Funds highlighted in this report, we maintained the same management strategy we employ in all market conditions. We follow a bottom-up (bond by bond) investment approach, which means we select bonds on an issuer-by-issuer basis, based on our team’s thorough credit research. We regularly seek bonds that offer the Funds’ shareholders what we view as an attractive trade-off between reward potential and risk.
Following this approach, we generally maintain less exposure to highly rated, lower yielding bonds and more exposure to bonds with lower-investment-grade or below-investment-grade credit ratings. We believe that by focusing on higher yielding securities that have solid underlying credit quality, we have more
opportunity to add value for the Funds’ shareholders. That said, in certain states, particularly those with more constrained municipal supply, it can sometimes be difficult to add as many lower-rated, higher yielding bonds to these Funds’ portfolios as we would ordinarily prefer. In such an environment, we look to achieve an appropriate balance of risk and reward while remaining ready to invest in suitable lower-rated issues when they present themselves.
As of fiscal year end on August 31, 2020, roughly 42.2% of the net assets of Delaware Tax-Free Arizona Fund were invested in bonds with lower-investment-grade credit ratings (A and BBB). Approximately 47.9% of the net assets of Delaware Tax-Free California Fund were invested in these same credit tiers, while Delaware Tax-Free Colorado Fund’s holdings in lower-investment-grade bonds totaled about 42.5% of net assets. Meanwhile, Delaware Tax-Free Idaho Fund’s exposure to bonds rated A and BBB was roughly 39.5% of the Fund’s net assets, compared with about 50.0% and 50.3%, respectively, for Delaware Tax-Free New York Fund and Delaware Tax-Free Pennsylvania Fund.
All six Funds also maintained allocations to high yield municipal bonds, those with credit ratings below BBB. As indicated in the prospectus, the Funds may hold up to 20% of their net assets in high yield debt, although these allocations remained below that threshold throughout the fiscal year. When investing in the high yield market segment, we thoroughly analyze the securities’ credit risk and emphasize those bonds that we believe offer a favorable risk-reward balance.
Tactical investment opportunities
For the first part of the fiscal year – roughly the period between September 2019 and the pandemic-fueled market selloff in March – we tended to limit our activity in the Funds’ portfolios.
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This approach reflected our assessment that the Funds were well positioned with many older bonds that had been issued in times of higher interest rates. This meant they offered a level of income that would be difficult to replace through the purchase of newer bonds.
Market conditions shifted dramatically, however, with the arrival of the coronavirus. In March, demand for municipal bonds suddenly weakened, and an environment of mutual fund inflows across the market turned into one of rapid outflows. We quickly determined this outflow trend was likely to worsen. As a result, we decided to raise cash in these Funds by selling bonds in an orderly way. Our goal was to preserve each Fund’s positioning as best we could, to be able to satisfy shareholder redemptions while avoiding having to sell securities at temporarily depressed prices. We believe these proactive sales worked to shareholders’ benefit, as the Funds had enough cash on hand to meet the redemption requests we received.
Beginning in April, municipal market conditions began to improve, reflecting aggressive economic stimulus and investors’ optimism about state economies around the country beginning to reopen. In this environment, we saw opportunities to purchase bonds priced significantly lower than what we believed was justified given these securities’ underlying credit quality. We embraced this strategy across all the municipal mutual funds we manage, even as supply constraints in certain state municipal bond markets sometimes made it difficult to execute it as frequently as we would have preferred.
We also employed a tax-loss swapping strategy to varying degrees in all six Funds. This approach entailed selling existing holdings at a loss (which can be applied against future capital gains) and using the sale proceeds to buy bonds with similar risk characteristics but higher yields.
Notable performance factors
For the fiscal year, longer-duration bonds – those with more sensitivity to interest rates – outperformed bonds with shorter durations. At the same time, bonds with higher credit ratings outperformed lower-quality bonds, which suffered disproportionately during the market’s March downturn. Many of the Funds’ strongest and weakest performers during the fiscal year reflected these performance trends.
For the 12-month period, tobacco-securitization bonds were among the strongest performers overall in the municipal bond marketplace and for some of the Funds profiled in this report. These securities have benefited as tobacco consumption trends have weakened more slowly than expected. In addition, because many tobacco issuers have refinanced their outstanding debt, older, higher yielding bonds have benefited from their scarcity. The tobacco-bond positions in Delaware Tax-Free California Fund and Delaware Tax-Free New York Fund gained nearly 23% and more than 5%, respectively. Along with being helped by the factors that lifted the overall tobacco sector, the California securities further benefited from being zero-coupon bonds, which, owing to their high durations (interest rate sensitivity), rose to a greater extent as rates declined.
Puerto Rico sales-tax bonds, known as COFINA bonds, were also notably strong performers for Delaware Tax-Free Arizona Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund, with gains that hovered around 7%. COFINA bonds benefited from strong investor demand due to the securities’ fully tax-exempt status (bonds of US territories are generally tax-exempt for residents in all 50 states), as well as Puerto Rico’s better-than-expected fiscal position.
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| Portfolio management review |
| Delaware Funds® by Macquarie state tax-free funds | | |
Bonds for the Edkey charter school project also contributed to performance for Delaware Tax-Free Arizona Fund. The Fund’s position in these bonds – which were rated BB-, with a final maturity date of 2048 and 6% coupon – gained more than 7% for the fiscal year, reflecting the issuer’s slow but steady fundamental improvement. Meanwhile, gradually better credit fundamentals helped lift the performance of a California charter school bond issue for Escuela Popular Del Pueblo, which gained 10% for Delaware Tax-Free California Fund.
The most notable individual contributor for Delaware Tax-Free Colorado Fund was a position in A-rated North Colorado Medical Center hospital bonds, with a 4% coupon and a 2032 final maturity date. These bonds were refunded during the fiscal year, resulting in a near 10% gain for the Fund.
In Delaware Tax-Free Idaho Fund, the Fund’s leading individual performer was an issue from Nampa Development Corp., an urban renewal agency in the state. These A-rated bonds were refunded during the fiscal year, resulting in a gain of more than 16% for the Fund.
In Delaware Tax-Free Pennsylvania Fund, the most notable individual performer was an investment in bonds issued for Procter & Gamble, rated AA- and which gained more than 6% due to their generally higher credit quality and noncallable nature. Healthcare bonds for Allegheny Health Network also added value to the Fund’s performance. These A-rated healthcare securities, which offered a 4% coupon and had a 2044 final maturity, gained more than 5% for the Fund.
Turning to detractors, many of the market’s weakest performers over the 12-month period included bonds of healthcare issuers, especially those of senior living operators, which struggled amid concern about how the coronavirus would affect their finances.
Delaware Tax-Free Arizona Fund, for example, showed particularly weak results from holdings in continuing care retirement community (CCRC) bonds for Great Lakes Senior Living Communities. These BBB-rated senior housing bonds lost more than 20% for the Fund. CCRC bonds for Mirabella at ASU, a privately owned retirement community on the campus of Arizona State University, also detracted from the Fund’s performance, declining close to 5%.
A position in Grand River Hospital District bonds, which fell more than 3%, weighed on Delaware Tax-Free Colorado Fund, while Valley Vista Care Corporation senior housing bonds, which lost more than 9%, were weak performers for Delaware Tax-Free Idaho Fund. The weakest-performing holding in Delaware Tax-Free New York Fund also came from the CCRC sector: bonds for Promenade Senior Living at University Place in Guilderland, N.Y., which declined nearly 22%.
The coronavirus pandemic also directly affected performance in other holdings in the Funds. For instance, in Delaware Tax-Free Pennsylvania Fund, we saw disappointing performance from lower-investment-grade higher education bonds for two Catholic liberal arts colleges, King’s College and Cabrini University. These and other smaller higher-education institutions with less certain financial positions have faced a particularly challenging operating environment during the fiscal year, and these issuers’ bond prices fell accordingly.
In Delaware Tax-Free California Fund, bonds of Goodwill Industries of Sacramento Valley and Northern Nevada struggled to a near 10% loss, as this operator of nonprofit retail facilities was forced to close its establishments for several months at the height of the pandemic.
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Delaware Tax-Free Colorado Fund’s holding in Denver Convention Center Hotel Authority bonds fell nearly 5%, reflecting a lack of hotel and convention business during the pandemic. Finally, in Delaware Tax-Free New York Fund, Metropolitan Transportation Authority bonds unsurprisingly struggled, falling close to 7%, as public transportation usage rapidly and sharply declined.
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| Performance summaries |
| Delaware Tax-Free Arizona Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
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| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
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Class A (Est. April 1, 1991) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.79% | | | | +3.44% | | | | +3.51% | | | | +5.12% | |
Including sales charge | | | -2.78% | | | | +2.49% | | | | +3.03% | | | | +4.96% | |
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| | | | |
Class C (Est. May 25, 1994) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.03% | | | | +2.67% | | | | +2.73% | | | | +3.94% | |
Including sales charge | | | +0.05% | | | | +2.67% | | | | +2.73% | | | | +3.94% | |
|
| |
| | | | |
Institutional Class (Est. December 31, 2013) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.05% | | | | +3.70% | | | | – | | | | +4.69% | |
Including sales charge | | | +2.05% | | | | +3.70% | | | | – | | | | +4.69% | |
|
| |
| | | | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +4.48%* | |
|
| |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 12. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual
12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the
10
time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
11
Performance summaries
Delaware Tax-Free Arizona Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating 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) from exceeding 0.59% of the Fund’s average daily net assets from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
|
|
Total annual operating expenses
(without fee waivers) | | 1.02% | | 1.77% | | 0.77% |
| | | |
Net expenses
(including fee waivers, if any) | | 0.84% | | 1.59% | | 0.59% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
|
|
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
12
Performance of a $10,000 investment1
Class A shares
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | |
|
|
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
|
|
 Bloomberg Barclays Municipal Bond Index
| | $10,000 | | $14,768 |
| | |
 Delaware Tax-Free Arizona Fund – Class A shares
| | $9,550 | | $13,481 |
|
|
Institutional Class shares
Average annual total returns from December 31, 2013 (inception date) through August 31, 2020
| | | | |
|
|
| For period beginning December 31, 2013 through August 31, 2020 | | Starting value | | Ending value |
|
|
Delaware Tax-Free Arizona Fund – Institutional Class shares | | $10,000 | | $13,576 |
| | |
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $13,397 |
|
|
13
Performance summaries
Delaware Tax-Free Arizona Fund
1The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on December 31, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of December 31, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions
or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 12. Please note additional details on pages 10 through 14.
The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | |
|
|
| | | Nasdaq symbols | | CUSIPs |
Class A | | VAZIX | | 928916204 |
Class C | | DVACX | | 928916501 |
Institutional Class | | DAZIX | | 928916873 |
|
|
14
| | |
| Performance summaries |
| Delaware Tax-Free California Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
|
| |
| | | | |
Class A (Est. March 2, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.59% | | | | +3.72% | | | | +4.29% | | | | +5.33% | |
Including sales charge | | | -3.00% | | | | +2.77% | | | | +3.81% | | | | +5.14% | |
|
| |
| | | | |
Class C (Est. April 9, 1996) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +0.83% | | | | +2.96% | | | | +3.52% | | | | +4.48% | |
Including sales charge | | | -0.15% | | | | +2.96% | | | | +3.52% | | | | +4.48% | |
|
| |
| | | | |
Institutional Class (Est. December 31, 2013) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.84% | | | | +3.98% | | | | – | | | | +5.08% | |
Including sales charge | | | +1.84% | | | | +3.98% | | | | – | | | | +5.08% | |
|
| |
| | | | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +4.48%* | |
|
| |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 17. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1
fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the
15
Performance summaries
Delaware Tax-Free California Fund
time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
16
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating 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) from exceeding 0.57% of the Fund’s average daily net assets from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
|
|
Total annual operating expenses
(without fee waivers) | | 1.03% | | 1.78% | | 0.78% |
| | | |
Net expenses
(including fee waivers, if any) | | 0.82% | | 1.57% | | 0.57% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
|
|
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
17
Performance summaries
Delaware Tax-Free California Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | |
|
|
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
|
|
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $14,768 |
| | |
Delaware Tax-Free California Fund – Class A shares | | $9,550 | | $14,529 |
|
|
Institutional Class shares
Average annual total returns from December 31, 2013 (inception date) through August 31, 2020
| | | | |
|
|
| For period beginning December 31, 2013 through August 31, 2020 | | Starting value | | Ending value |
|
|
Delaware Tax-Free California Fund — Institutional Class shares | | $10,000 | | $13,917 |
| | |
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $13,397 |
|
|
18
1The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on December 31, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of December 31, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions
or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 17. Please note additional details on pages 15 through 19.
The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | |
|
|
| | | Nasdaq symbols | | CUSIPs |
Class A | | DVTAX | | 928928829 |
Class C | | DVFTX | | 928928795 |
Institutional Class | | DCTIX | | 928928167 |
|
|
19
| | |
| Performance summaries |
| Delaware Tax-Free Colorado Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
|
| |
| | | | |
Class A (Est. April 23, 1987) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.88% | | | | +3.59% | | | | +3.70% | | | | +5.56% | |
Including sales charge | | | -2.69% | | | | +2.64% | | | | +3.22% | | | | +5.42% | |
|
| |
| | | | |
Class C (Est. May 5, 1994) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.12% | | | | +2.81% | | | | +2.92% | | | | +4.03% | |
Including sales charge | | | +0.14% | | | | +2.81% | | | | +2.92% | | | | +4.03% | |
|
| |
| | | | |
Institutional Class (Est. December 31, 2013) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.14% | | | | +3.85% | | | | – | | | | +4.82% | |
Including sales charge | | | +2.14% | | | | +3.85% | | | | – | | | | +4.82% | |
|
| |
| | | | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +4.48%* | |
|
| |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 22. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1
fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the
20
��
time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
21
Performance summaries
Delaware Tax-Free Colorado Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating 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) from exceeding 0.59% of the Fund’s average daily net assets from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
|
|
Total annual operating expenses
(without fee waivers) | | 0.97% | | 1.72% | | 0.72% |
| | | |
Net expenses
(including fee waivers, if any) | | 0.84% | | 1.59% | | 0.59% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
|
|
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
22
Performance of a $10,000 investment1
Class A shares
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | |
|
|
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
|
|
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $14,768 |
| | |
Delaware Tax-Free Colorado Fund – Class A shares | | $9,550 | | $13,730 |
|
|
Institutional Class shares
Average annual total returns from December 31, 2013 (inception date) through August 31, 2020
| | | | |
|
|
| For period beginning December 31, 2013 through August 31, 2020 | | Starting value | | Ending value |
|
|
Delaware Tax-Free Colorado Fund – Institutional Class shares | | $10,000 | | $13,686 |
| | |
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $13,397 |
|
|
23
Performance summaries
Delaware Tax-Free Colorado Fund
1The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on December 31, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of December 31, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions
or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 22. Please note additional details on pages 20 through 24.
The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | |
|
|
| | | Nasdaq symbols | | CUSIPs |
Class A | | VCTFX | | 928920107 |
Class C | | DVCTX | | 92907R101 |
Institutional Class | | DCOIX | | 92907R200 |
|
|
24
| | |
| Performance summaries |
| Delaware Tax-Free Idaho Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
|
| |
| | | | |
Class A (Est. January 4, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.77% | | | | +3.09% | | | | +2.79% | | | | +4.69% | |
Including sales charge | | | -2.82% | | | | +2.15% | | | | +2.31% | | | | +4.51% | |
|
| |
| | | | |
Class C (Est. January 10, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.00% | | | | +2.32% | | | | +2.02% | | | | +3.89% | |
Including sales charge | | | +0.02% | | | | +2.32% | | | | +2.02% | | | | +3.89% | |
|
| |
| | | | |
Institutional Class (Est. December 31, 2013) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.02% | | | | +3.35% | | | | – | | | | +4.04% | |
Including sales charge | | | +2.02% | | | | +3.35% | | | | – | | | | +4.04% | |
|
| |
| | | | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +4.48%* | |
|
| |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 27. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1
fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the
25
Performance summaries
Delaware Tax-Free Idaho Fund
time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
26
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating 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) from exceeding 0.61% of the Fund’s average daily net assets from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
|
|
Total annual operating expenses
(without fee waivers) | | 1.03% | | 1.78% | | 0.78% |
| | | |
Net expenses
(including fee waivers, if any) | | 0.86% | | 1.61% | | 0.61% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
|
|
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
27
Performance summaries
Delaware Tax-Free Idaho Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | |
|
|
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
|
|
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $14,768 |
| | |
Delaware Tax-Free Idaho Fund – Class A shares | | $9,550 | | $12,572 |
|
|
Institutional Class shares
Average annual total returns from December 31, 2013 (inception date) through August 31, 2020
| | | | |
|
|
| For period beginning December 31, 2013 through August 31, 2020 | | Starting value | | Ending value |
|
|
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $13,397 |
| | |
Delaware Tax-Free Idaho Fund – Institutional Class shares | | $10,000 | | $13,022 |
|
|
28
1The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on December 31, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of December 31, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions
or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 27. Please note additional details on pages 25 through 29.
The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | |
|
|
| | | Nasdaq symbols | | CUSIPs |
Class A | | VIDAX | | 928928704 |
Class C | | DVICX | | 928928803 |
Institutional Class | | DTIDX | | 928928159 |
|
|
29
| | |
| Performance summaries |
| Delaware Tax-Free New York Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
|
| |
| | | | |
Class A (Est. November 6, 1987) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.68% | | | | +3.52% | | | | +3.84% | | | | +5.45% | |
Including sales charge | | | -2.91% | | | | +2.57% | | | | +3.36% | | | | +5.31% | |
|
| |
| | | | |
Class C (Est. April 26, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +0.92% | | | | +2.75% | | | | +3.06% | | | | +3.88% | |
Including sales charge | | | -0.07% | | | | +2.75% | | | | +3.06% | | | | +3.88% | |
|
| |
| | | | |
Institutional Class (Est. December 31, 2013) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.03% | | | | +3.80% | | | | – | | | | +4.82% | |
Including sales charge | | | +2.03% | | | | +3.80% | | | | – | | | | +4.82% | |
|
| |
| | | | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +4.48%* | |
|
| |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 32. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1
fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the
30
time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
31
Performance summaries
Delaware Tax-Free New York Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating 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) from exceeding 0.55% of the Fund’s average daily net assets from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
|
|
Total annual operating expenses
(without fee waivers) | | 1.07% | | 1.82% | | 0.82% |
| | | |
Net expenses
(including fee waivers, if any) | | 0.80% | | 1.55% | | 0.55% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
|
|
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
32
Performance of a $10,000 investment1
Class A shares
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | |
|
|
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
|
|
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $14,768 |
| | |
Delaware Tax-Free New York Fund – Class A shares | | $9,550 | | $13,913 |
|
|
Institutional Class shares
Average annual total returns from December 31, 2013 (inception date) through August 31, 2020
| | | | |
|
|
| For period beginning December 31, 2013 through August 31, 2020 | | Starting value | | Ending value |
|
|
Delaware Tax-Free New York Fund – Institutional Class shares | | $10,000 | | $13,689 |
| | |
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $13,397 |
|
|
33
Performance summaries
Delaware Tax-Free New York Fund
1The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on December 31, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of December 31, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions
or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 32. Please note additional details on pages 30 through 34.
The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | |
|
|
| | | Nasdaq symbols | | CUSIPs |
Class A | | FTNYX | | 928928274 |
Class C | | DVFNX | | 928928258 |
Institutional Class | | DTNIX | | 928928142 |
|
|
34
| | |
| Performance summaries |
| Delaware Tax-Free Pennsylvania Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
|
| |
| | | | |
Class A (Est. March 23, 1977) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.72% | | | | +3.45% | | | | +3.76% | | | | +5.43% | |
Including sales charge | | | -2.87% | | | | +2.51% | | | | +3.29% | | | | +5.32% | |
|
| |
| | | | |
Class C (Est. November 29, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +0.95% | | | | +2.67% | | | | +2.98% | | | | +3.62% | |
Including sales charge | | | -0.03% | | | | +2.67% | | | | +2.98% | | | | +3.62% | |
|
| |
| | | | |
Institutional Class (Est. December 31, 2013) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.84% | | | | +3.70% | | | | – | | | | +4.71% | |
Including sales charge | | | +1.84% | | | | +3.70% | | | | – | | | | +4.71% | |
|
| |
| | | | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +4.48%* | |
|
| |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 37. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1
fee of 0.25% of average daily net assets. The Board has adopted a formula for calculating 12b-1 plan fees for the Fund’s Class A shares. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All Class A shares currently bear 12b-1 fees at the same rate, the blended rate, currently 0.24% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets.
35
Performance summaries
Delaware Tax-Free Pennsylvania Fund
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR)
or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
36
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating 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) from exceeding 0.59% of the Fund’s average daily net assets from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
|
|
Total annual operating expenses
(without fee waivers) | | 0.93% | | 1.69% | | 0.69% |
| | | |
Net expenses
(including fee waivers, if any) | | 0.83% | | 1.59% | | 0.59% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
|
|
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
37
Performance summaries
Delaware Tax-Free Pennsylvania Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | |
|
|
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
|
|
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $14,768 |
| | |
Delaware Tax-Free Pennsylvania Fund – Class A shares | | $9,550 | | $13,821 |
|
|
Institutional Class shares
Average annual total returns from December 31, 2013 (inception date) through August 31, 2020
| | | | |
|
|
| For period beginning December 31, 2013 through August 31, 2020 | | Starting value | | Ending value |
|
|
Delaware Tax-Free Pennsylvania Fund – Institutional Class shares | | $10,000 | | $13,590 |
| | |
Bloomberg Barclays Municipal Bond Index | | $10,000 | | $13,397 |
|
|
38
1The “Performance of a $10,000 investment” graph for Class A shares assumes $10,000 invested in Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010.
The “Performance of a $10,000 investment” graph for Institutional Class shares assumes $10,000 invested in Institutional Class shares of the Fund on December 31, 2013, and includes the reinvestment of all distributions. The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of December 31, 2013.
The graphs do not reflect the deduction of taxes the shareholders would pay on Fund distributions
or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 37. Please note additional details on pages 35 through 39.
The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | |
|
|
| | | Nasdaq symbols | | CUSIPs |
Class A | | DELIX | | 233216100 |
Class C | | DPTCX | | 233216308 |
Institutional Class | | DTPIX | | 24609H701 |
|
|
39
Disclosure of Fund expenses
For the six-month period from March 1, 2020 to August 31, 2020 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from March 1, 2020 to August 31, 2020.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
40
Delaware Tax-Free Arizona Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
| | | | |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $983.10 | | | | | 0.84% | | | | | $4.19 | |
Class C | | | | 1,000.00 | | | | | 979.50 | | | | | 1.59% | | | | | 7.91 | |
Institutional Class | | | | 1,000.00 | | | | | 984.40 | | | | | 0.59% | | | | | 2.94 | |
| | |
Hypothetical 5% return (5% return before expenses) | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $1,020.91 | | | | | 0.84% | | | | | $4.27 | |
Class C | | | | 1,000.00 | | | | | 1,017.14 | | | | | 1.59% | | | | | 8.06 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.17 | | | | | 0.59% | | | | | 3.00 | |
|
Delaware Tax-Free California Fund Expense analysis of an investment of $1,000 | |
| | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
| | | | |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $978.00 | | | | | 0.82% | | | | | $4.08 | |
Class C | | | | 1,000.00 | | | | | 975.10 | | | | | 1.57% | | | | | 7.79 | |
Institutional Class | | | | 1,000.00 | | | | | 979.20 | | | | | 0.57% | | | | | 2.84 | |
|
Hypothetical 5% return (5% return before expenses) | |
Class A | | | | $1,000.00 | | | | | $1,021.01 | | | | | 0.82% | | | | | $4.17 | |
Class C | | | | 1,000.00 | | | | | 1,017.24 | | | | | 1.57% | | | | | 7.96 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.27 | | | | | 0.57% | | | | | 2.90 | |
41
Disclosure of Fund expenses
For the six-month period from March 1, 2020 to August 31, 2020 (Unaudited)
Delaware Tax-Free Colorado Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
| | | | |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $986.90 | | | | | 0.84% | | | | | $4.20 | |
Class C | | | | 1,000.00 | | | | | 983.30 | | | | | 1.59% | | | | | 7.93 | |
Institutional Class | | | | 1,000.00 | | | | | 988.20 | | | | | 0.59% | | | | | 2.95 | |
| | |
Hypothetical 5% return (5% return before expenses) | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $1,020.91 | | | | | 0.84% | | | | | $4.27 | |
Class C | | | | 1,000.00 | | | | | 1,017.14 | | | | | 1.59% | | | | | 8.06 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.17 | | | | | 0.59% | | | | | 3.00 | |
|
Delaware Tax-Free Idaho Fund Expense analysis of an investment of $1,000 | |
| | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
| | | | |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $986.90 | | | | | 0.86% | | | | | $4.30 | |
Class C | | | | 1,000.00 | | | | | 983.10 | | | | | 1.61% | | | | | 8.03 | |
Institutional Class | | | | 1,000.00 | | | | | 988.10 | | | | | 0.61% | | | | | 3.05 | |
|
Hypothetical 5% return (5% return before expenses) | |
Class A | | | | $1,000.00 | | | | | $1,020.81 | | | | | 0.86% | | | | | $4.37 | |
Class C | | | | 1,000.00 | | | | | 1,017.04 | | | | | 1.61% | | | | | 8.16 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.07 | | | | | 0.61% | | | | | 3.10 | |
42
Delaware Tax-Free New York Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
| | | | |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | $ | 1,000.00 | | | | $ | 979.00 | | | | | 0.80 | % | | | $ | 3.98 | |
Class C | | | | 1,000.00 | | | | | 975.20 | | | | | 1.55 | % | | | | 7.70 | |
Institutional Class | | | | 1,000.00 | | | | | 981.10 | | | | | 0.55 | % | | | | 2.74 | |
| | |
Hypothetical 5% return (5% return before expenses) | | | | | | | | | | | |
Class A | | | $ | 1,000.00 | | | | $ | 1,021.11 | | | | | 0.80 | % | | | $ | 4.06 | |
Class C | | | | 1,000.00 | | | | | 1,017.34 | | | | | 1.55 | % | | | | 7.86 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.37 | | | | | 0.55 | % | | | | 2.80 | |
|
Delaware Tax-Free Pennsylvania Fund Expense analysis of an investment of $1,000 | |
| | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
| | | | |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | $ | 1,000.00 | | | | $ | 981.80 | | | | | 0.83 | % | | | $ | 4.13 | |
Class C | | | | 1,000.00 | | | | | 978.10 | | | | | 1.59 | % | | | | 7.91 | |
Institutional Class | | | | 1,000.00 | | | | | 983.00 | | | | | 0.59 | % | | | | 2.94 | |
|
Hypothetical 5% return (5% return before expenses) | |
Class A | | | $ | 1,000.00 | | | | $ | 1,020.96 | | | | | 0.83 | % | | | $ | 4.22 | |
Class C | | | | 1,000.00 | | | | | 1,017.14 | | | | | 1.59 | % | | | | 8.06 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.17 | | | | | 0.59 | % | | | | 3.00 | |
| * | “Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| † | Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns. |
In addition to the Funds’ expenses reflected above, each Fund also indirectly bears its portion of the fees and expenses of the investment companies (Underlying Funds) in which it invests. The tables above do not reflect the expenses of the Underlying Funds.
43
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free Arizona Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | | | | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | | | 97.90 | % |
Corporate Revenue Bonds | | | | 6.76 | % |
Education Revenue Bonds | | | | 24.46 | % |
Electric Revenue Bonds | | | | 5.57 | % |
Healthcare Revenue Bonds | | | | 21.20 | % |
Lease Revenue Bonds | | | | 5.58 | % |
Local General Obligation Bonds | | | | 4.36 | % |
Pre-Refunded Bonds | | | | 4.34 | % |
Special Tax Revenue Bonds | | | | 12.84 | % |
State General Obligation Bonds | | | | 1.30 | % |
Transportation Revenue Bonds | | | | 5.13 | % |
Water & Sewer Revenue Bonds | | | | 6.36 | % |
Short-Term Investments | | | | 1.25 | % |
Total Value of Securities | | | | 99.15 | % |
Receivables and Other Assets Net of Liabilities | | | | 0.85 | % |
Total Net Assets | | | | 100.00 | % |
* As of the date of this report, Delaware Tax-Free Arizona Fund held bonds issued by or on behalf of territories and the states of the US as follows:
| | | | | |
| State / territory | | Percentage of net assets |
Arizona | | | | 85.87 | % |
Guam | | | | 1.98 | % |
Puerto Rico | | | | 11.30 | % |
Total Value of Securities | | | | 99.15 | % |
44
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free California Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | | | | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | | | 96.90 | % |
Corporate Revenue Bonds | | | | 7.31 | % |
Education Revenue Bonds | | | | 31.34 | % |
Electric Revenue Bonds | | | | 0.84 | % |
Healthcare Revenue Bonds | | | | 17.58 | % |
Housing Revenue Bonds | | | | 3.85 | % |
Lease Revenue Bonds | | | | 7.08 | % |
Local General Obligation Bonds | | | | 1.82 | % |
Pre-Refunded Bonds | | | | 3.91 | % |
Special Tax Revenue Bonds | | | | 9.04 | % |
State General Obligation Bonds | | | | 4.83 | % |
Transportation Revenue Bonds | | | | 9.30 | % |
Short-Term Investments | | | | 1.12 | % |
Total Value of Securities | | | | 98.02 | % |
Receivables and Other Assets Net of Liabilities | | | | 1.98 | % |
Total Net Assets | | | | 100.00 | % |
* As of the date of this report, Delaware Tax-Free California Fund held bonds issued by or on behalf of territories and the states of the US as follows:
| | | | | |
| State / territory | | Percentage of net assets |
California | | | | 88.43 | % |
Puerto Rico | | | | 9.59 | % |
Total Value of Securities | | | | 98.02 | % |
45
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free Colorado Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | | | | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | | | 98.60 | % |
Corporate Revenue Bonds | | | | 3.23 | % |
Education Revenue Bonds | | | | 11.94 | % |
Electric Revenue Bonds | | | | 3.88 | % |
Healthcare Revenue Bonds | | | | 25.76 | % |
Housing Revenue Bonds | | | | 0.09 | % |
Lease Revenue Bonds | | | | 2.04 | % |
Local General Obligation Bonds | | | | 11.32 | % |
Pre-Refunded Bonds | | | | 6.64 | % |
Special Tax Revenue Bonds | | | | 18.84 | % |
State General Obligation Bonds | | | | 1.32 | % |
Transportation Revenue Bonds | | | | 11.03 | % |
Water & Sewer Revenue Bonds | | | | 2.51 | % |
Short-Term Investments | | | | 0.52 | % |
Total Value of Securities | | | | 99.12 | % |
Receivables and Other Assets Net of Liabilities | | | | 0.88 | % |
Total Net Assets | | | | 100.00 | % |
* As of the date of this report, Delaware Tax-Free Colorado Fund held bonds issued by or on behalf of territories and the states of the US as follows:
| | | | | |
| State / territory | | Percentage of net assets |
Colorado | | | | 89.14 | % |
Guam | | | | 1.70 | % |
Idaho | | | | 0.29 | % |
Puerto Rico | | | | 7.53 | % |
US Virgin Islands | | | | 0.46 | % |
Total Value of Securities | | | | 99.12 | % |
46
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free Idaho Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | | | | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | | | 97.15 | % |
Corporate Revenue Bonds | | | | 3.11 | % |
Education Revenue Bonds | | | | 14.92 | % |
Electric Revenue Bonds | | | | 4.12 | % |
Healthcare Revenue Bonds | | | | 9.33 | % |
Housing Revenue Bonds | | | | 4.36 | % |
Lease Revenue Bonds | | | | 10.67 | % |
Local General Obligation Bonds | | | | 22.19 | % |
Pre-Refunded Bonds | | | | 6.38 | % |
Special Tax Revenue Bonds | | | | 16.31 | % |
State General Obligation Bonds | | | | 1.77 | % |
Transportation Revenue Bonds | | | | 2.69 | % |
Water & Sewer Revenue Bonds | | | | 1.30 | % |
Short-Term Investments | | | | 1.84 | % |
Total Value of Securities | | | | 98.99 | % |
Receivables and Other Assets Net of Liabilities | | | | 1.01 | % |
Total Net Assets | | | | 100.00 | % |
* As of the date of this report, Delaware Tax-Free Idaho Fund held bonds issued by or on behalf of territories and the states of the US as follows:
| | | | | |
| State / territory | | Percentage of net assets |
Guam | | | | 4.99 | % |
Idaho | | | | 81.81 | % |
Puerto Rico | | | | 11.95 | % |
US Virgin Islands | | | | 0.24 | % |
Total Value of Securities | | | | 98.99 | % |
47
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free New York Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | | | | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | | | 98.59 | % |
Corporate Revenue Bonds | | | | 6.11 | % |
Education Revenue Bonds | | | | 19.36 | % |
Electric Revenue Bonds | | | | 6.69 | % |
Healthcare Revenue Bonds | | | | 13.77 | % |
Lease Revenue Bonds | | | | 6.82 | % |
Local General Obligation Bond | | | | 0.71 | % |
Pre-Refunded Bonds | | | | 4.55 | % |
Resource Recovery Revenue Bond | | | | 1.76 | % |
Special Tax Revenue Bonds | | | | 19.01 | % |
State General Obligation Bonds | | | | 1.29 | % |
Transportation Revenue Bonds | | | | 11.89 | % |
Water & Sewer Revenue Bonds | | | | 6.63 | % |
Short-Term Investments | | | | 0.46 | % |
Total Value of Securities | | | | 99.05 | % |
Receivables and Other Assets Net of Liabilities | | | | 0.95 | % |
Total Net Assets | | | | 100.00 | % |
* As of the date of this report, Delaware Tax-Free New York Fund held bonds issued by or on behalf of territories and the states of the US as follows:
| | | | | |
| State / territory | | Percentage of net assets |
Guam | | | | 0.28 | % |
New York | | | | 89.88 | % |
Puerto Rico | | | | 8.89 | % |
Total Value of Securities | | | | 99.05 | % |
48
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free Pennsylvania Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | | | | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | | | 98.50 | % |
Corporate Revenue Bonds | | | | 7.54 | % |
Education Revenue Bonds | | | | 12.15 | % |
Electric Revenue Bonds | | | | 0.86 | % |
Healthcare Revenue Bonds | | | | 38.22 | % |
Housing Revenue Bond | | | | 0.45 | % |
Lease Revenue Bonds | | | | 1.16 | % |
Local General Obligation Bonds | | | | 4.53 | % |
Pre-Refunded/Escrowed to Maturity Bonds | | | | 8.01 | % |
Special Tax Revenue Bonds | | | | 12.90 | % |
State General Obligation Bonds | | | | 2.68 | % |
Transportation Revenue Bonds | | | | 8.70 | % |
Water & Sewer Revenue Bonds | | | | 1.30 | % |
Short-Term Investments | | | | 0.35 | % |
Total Value of Securities | | | | 98.85 | % |
Receivables and Other Assets Net of Liabilities | | | | 1.15 | % |
Total Net Assets | | | | 100.00 | % |
* As of the date of this report, Delaware Tax-Free Pennsylvania Fund held bonds issued by or on behalf of territories and the states of the US as follows:
| | | | | |
| State / territory | | Percentage of net assets |
Pennsylvania | | | | 87.85 | % |
Puerto Rico | | | | 11.00 | % |
Total Value of Securities | | | | 98.85 | % |
49
| | |
| Schedules of investments |
| Delaware Tax-Free Arizona Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds – 97.90% | | | | | | | | |
Corporate Revenue Bonds – 6.76% | | | | | | | | |
Chandler Industrial Development Authority Revenue | | | | | | | | |
(Intel Corporation Project) 2.70% 12/1/37 (AMT)• | | | 1,000,000 | | | $ | 1,053,710 | |
Pima County Industrial Development Authority Pollution Control Revenue | | | | | | | | |
(Tucson Electric Power) Series A 5.25% 10/1/40 | | | 1,600,000 | | | | 1,604,256 | |
Salt Verde Financial Senior Gas Revenue | | | | | | | | |
5.00% 12/1/37 | | | 2,000,000 | | | | 2,738,260 | |
| | | | | | | | |
| | | | 5,396,226 | |
| | | | | | | | |
Education Revenue Bonds – 24.46% | | | | | | | | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(Academies of Math & Science Projects) Series A 5.00% 7/1/51 | | | 1,000,000 | | | | 1,151,400 | |
(ACCEL Schools Project) Series A 144A 5.25% 8/1/48 # | | | 350,000 | | | | 364,462 | |
(American Charter Schools Foundation Project) | | | | | | | | |
144A 6.00% 7/1/37 # | | | 250,000 | | | | 278,977 | |
144A 6.00% 7/1/47 # | | | 400,000 | | | | 439,344 | |
(Doral Academy of Nevada - Fire Mesa and Red Rock Campus Projects)
Series A 144A 5.00% 7/15/49 # | | | 375,000 | | | | 390,199 | |
(Empower College Prep Project) 144A 6.00% 7/1/49 # | | | 500,000 | | | | 529,810 | |
(Equitable School Revolving Fund) Series A 4.00% 11/1/49 | | | 1,600,000 | | | | 1,789,696 | |
(Odyssey Preparatory Academy Project) Series A 144A 5.50% 7/1/52 # | | | 375,000 | | | | 403,301 | |
(Pinecrest Academy of Nevada-Horizon, Inspirada and St. Rose Campus Projects) Series A 144A 5.75% 7/15/48 # | | | 250,000 | | | | 273,768 | |
(Somerset Academy of Las Vegas - Lone Mountain Campus Project) Series A 144A 5.00% 12/15/49 # | | | 500,000 | | | | 506,390 | |
Arizona State University Energy Management Revenue | | | | | | | | |
(Arizona State University Tempe Campus II Project) | | | | | | | | |
4.50% 7/1/24 | | | 1,000,000 | | | | 1,003,310 | |
Glendale Industrial Development Authority Revenue | | | | | | | | |
(Midwestern University) | | | | | | | | |
5.00% 5/15/31 | | | 645,000 | | | | 673,767 | |
50
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Education Revenue Bonds (continued) | | | | | | | | |
Maricopa County Industrial Development Authority Revenue | | | | | | | | |
(Arizona Autism Charter Schools Project) | | | | | | | | |
Series A 144A 5.00% 7/1/40 # | | | 500,000 | | | $ | 529,230 | |
(Creighton University Project) 4.00% 7/1/50 | | | 1,000,000 | | | | 1,079,250 | |
(GreatHearts Arizona Projects) | | | | | | | | |
Series A 5.00% 7/1/52 | | | 725,000 | | | | 845,140 | |
(Reid Traditional Schools Projects) 5.00% 7/1/47 | | | 785,000 | | | | 861,428 | |
McAllister Academic Village Revenue | | | | | | | | |
(Arizona State University Hassayampa Academic Village Project) 5.00% 7/1/31 | | | 500,000 | | | | 607,255 | |
Phoenix Industrial Development Authority | | | | | | | | |
(Choice Academies Project) 5.625% 9/1/42 | | | 1,250,000 | | | | 1,276,325 | |
(Eagle College Preparatory Project) Series A 5.00% 7/1/43 | | | 500,000 | | | | 504,580 | |
(Great Hearts Academic Project) 5.00% 7/1/46 | | | 1,000,000 | | | | 1,075,020 | |
(Rowan University Project) 5.00% 6/1/42 | | | 2,000,000 | | | | 2,075,780 | |
Pima County Industrial Development Authority Education Revenue | | | | | | | | |
(American Leadership Academy Project) | | | | | | | | |
144A 5.00% 6/15/47 # | | | 100,000 | | | | 100,297 | |
144A 5.00% 6/15/52 # | | | 90,000 | | | | 90,191 | |
(Edkey Charter School Project) 6.00% 7/1/48 | | | 1,000,000 | | | | 1,012,710 | |
(Tucson Country Day School Project) 5.00% 6/1/37 | | | 750,000 | | | | 750,367 | |
University of Arizona Board of Regents | | | | | | | | |
Series A 4.00% 6/1/44 | | | 475,000 | | | | 548,701 | |
Series A 5.00% 6/1/25 | | | 335,000 | | | | 361,924 | |
| | | | | | | | |
| | | | 19,522,622 | |
| | | | | | | | |
Electric Revenue Bonds – 5.57% | | | | | | | | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 55,000 | | | | 37,950 | |
Series AAA 5.25% 7/1/25 ‡ | | | 35,000 | | | | 24,194 | |
Series WW 5.00% 7/1/28 ‡ | | | 245,000 | | | | 169,050 | |
Series XX 4.75% 7/1/26 ‡ | | | 35,000 | | | | 23,975 | |
Series XX 5.25% 7/1/40 ‡ | | | 355,000 | | | | 245,394 | |
51
Schedules of investments
Delaware Tax-Free Arizona Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Electric Revenue Bonds (continued) | | | | | | | | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series XX 5.75% 7/1/36 ‡ | | | 125,000 | | | $ | 87,187 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 30,000 | | | | 20,550 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 45,000 | | | | 31,106 | |
Salt River Project Agricultural Improvement & Power District Electric System Revenue | | | | | | | | |
Series A 5.00% 1/1/39 | | | 2,000,000 | | | | 2,512,340 | |
Series A 5.00% 1/1/47 | | | 1,000,000 | | | | 1,291,330 | |
| | | | | | | | |
| | | | 4,443,076 | |
| | | | | | | | |
Healthcare Revenue Bonds – 21.20% | | | | | | | | |
Arizona Health Facilities Authority Hospital System Revenue | | | | | | | | |
(Banner Health) Series A 5.00% 1/1/43 | | | 500,000 | | | | 521,745 | |
(Phoenix Children’s Hospital) Series A 5.00% 2/1/34 | | | 995,000 | | | | 1,046,442 | |
(Scottsdale Lincoln Hospital Project) 5.00% 12/1/42 | | | 1,000,000 | | | | 1,123,850 | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(Great Lakes Senior Living Communities LLC Project First Tier) Series A
5.00% 1/1/54 | | | 145,000 | | | | 127,003 | |
(Great Lakes Senior Living Communities LLC Project Second Tier) | | | | | | | | |
Series B 5.00% 1/1/49 | | | 55,000 | | | | 46,302 | |
Series B 5.125% 1/1/54 | | | 65,000 | | | | 54,877 | |
(Great Lakes Senior Living Communities LLC Project Third Tier) Series C 144A 5.00% 1/1/49 # | | | 500,000 | | | | 398,000 | |
(Legacy Cares Project) Series A 144A 7.75% 7/1/50# | | | 285,000 | | | | 282,010 | |
Glendale Industrial Development Authority Revenue | | | | | | | | |
(Glencroft Retirement Community Project) | | | | | | | | |
5.00% 11/15/36 | | | 270,000 | | | | 264,403 | |
5.25% 11/15/46 | | | 415,000 | | | | 400,653 | |
(Sun Health Services) Series A 5.00% 11/15/48 | | | 1,000,000 | | | | 1,125,640 | |
(The Beatitudes Campus Project) | | | | | | | | |
5.00% 11/15/45 | | | 200,000 | | | | 207,076 | |
5.00% 11/15/53 | | | 300,000 | | | | 308,928 | |
(The Terraces of Phoenix Project) Series A 5.00% 7/1/48 | | | 375,000 | | | | 375,619 | |
52
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Maricopa County Industrial Development Authority Health Facilities Revenue | | | | | | | | |
(Banner Health) | | | | | | | | |
Series A 4.00% 1/1/41 | | | 1,000,000 | | | $ | 1,124,270 | |
Series A 4.00% 1/1/44 | | | 1,500,000 | | | | 1,707,810 | |
Maricopa County Industrial Development Authority Senior Living Facility Revenue | | | | | | | | |
(Christian Care Surprise Project) 144A 6.00% 1/1/48 # | | | 405,000 | | | | 391,773 | |
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | | | | | | | | |
(Hospital Auxilio Mutuo Obligated Group Project) Series A 6.00% 7/1/33 | | | 790,000 | | | | 810,769 | |
Tempe Industrial Development Authority Revenue | | | | | | | | |
(Friendship Village) Series A 6.25% 12/1/42 | | | 1,200,000 | | | | 1,218,384 | |
(Mirabella at ASU Project) Series A 144A 6.125% 10/1/52 # | | | 800,000 | | | | 822,344 | |
Yavapai County Industrial Development Authority Hospital Facility | | | | | | | | |
(Yavapai Regional Medical Center) | | | | | | | | |
4.00% 8/1/43 | | | 1,500,000 | | | | 1,691,850 | |
Series A 5.25% 8/1/33 | | | 2,000,000 | | | | 2,201,200 | |
Yuma Industrial Development Authority Hospital Revenue | | | | | | | | |
(Yuma Regional Medical Center) | | | | | | | | |
Series A 5.00% 8/1/32 | | | 295,000 | | | | 332,500 | |
Series A 5.25% 8/1/32 | | | 300,000 | | | | 341,946 | |
| | | | | | | | |
| | | | 16,925,394 | |
| | | | | | | | |
Lease Revenue Bonds – 5.58% | | | | | | | | |
Arizona Game & Fish Department & Community Beneficial Interest Certificates | | | | | | | | |
(Administration Building Project) 5.00% 7/1/32 | | | 1,000,000 | | | | 1,003,710 | |
Arizona Sports & Tourism Authority Senior Revenue | | | | | | | | |
(Multipurpose Stadium Facility) Series A 5.00% 7/1/36 | | | 350,000 | | | | 367,157 | |
Maricopa County Industrial Development Authority Correctional Contract Revenue | | | | | | | | |
(Phoenix West Prison) Series B 5.375% 7/1/22 (ACA) | | | 685,000 | | | | 687,007 | |
53
Schedules of investments
Delaware Tax-Free Arizona Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Lease Revenue Bonds (continued) | | | | | | | | |
Phoenix Civic Improvement Airport Revenue | | | | | | | | |
(Junior Lien) Series A 5.00% 7/1/49 | | | 2,000,000 | | | $ | 2,396,140 | |
| | | | | | | | |
| | | | 4,454,014 | |
| | | | | | | | |
Local General Obligation Bonds – 4.36% | | | | | | | | |
Maricopa County High School District No. 214 Tolleson Union High School | | | | | | | | |
(School Improvement Project) Series B 4.00% 7/1/37 | | | 1,000,000 | | | | 1,170,300 | |
Maricopa County School District No. 3 Tempe Elementary | | | | | | | | |
(School Improvement Project) Series B 5.00% 7/1/30 | | | 560,000 | | | | 722,411 | |
Maricopa County Unified School District No 69 Paradise Valley | | | | | | | | |
4.00% 7/1/39 | | | 600,000 | | | | 715,368 | |
Maricopa County Unified School District No. 95 Queen Creek | | | | | | | | |
(School Improvement) 4.00% 7/1/35 | | | 500,000 | | | | 587,285 | |
Pinal County Community College District | | | | | | | | |
4.00% 7/1/31 | | | 250,000 | | | | 286,998 | |
| | | | | | | | |
| | | | 3,482,362 | |
| | | | | | | | |
Pre-Refunded Bonds – 4.34% | | | | | | | | |
Northern Arizona University | | | | | | | | |
5.00% 6/1/36-21 § | | | 475,000 | | | | 491,829 | |
Phoenix Industrial Development Authority | | | | | | | | |
(Great Hearts Academic Project) | | | | | | | | |
6.30% 7/1/42-21 § | | | 500,000 | | | | 524,090 | |
6.40% 7/1/47-21 § | | | 500,000 | | | | 524,500 | |
Pinal County Electric District No. 3 | | | | | | | | |
Series A 5.25% 7/1/41-21 § | | | 750,000 | | | | 781,672 | |
University of Arizona Board of Regents | | | | | | | | |
Series A 5.00% 6/1/25-22 § | | | 10,000 | | | | 10,804 | |
Series A 5.00% 6/1/38-23 § | | | 1,000,000 | | | | 1,129,670 | |
| | | | | | | | |
| | | | 3,462,565 | |
| | | | | | | | |
Special Tax Revenue Bonds – 12.84% | | | | | | | | |
GDB Debt Recovery Authority | | | | | | | | |
(Taxable) 7.50% 8/20/40 | | | 478,650 | | | | 328,474 | |
54
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Glendale Municipal Property Excise Tax Revenue | | | | | | | | |
(Senior Lien) Series B 5.00% 7/1/33 | | | 570,000 | | | $ | 626,236 | |
Glendale Transportation Excise Tax Revenue | | | | | | | | |
5.00% 7/1/30 (AGM) | | | 1,000,000 | | | | 1,206,010 | |
Guam Government Business Privilege Tax Revenue | | | | | | | | |
Series A 5.125% 1/1/42 | | | 545,000 | | | | 559,268 | |
Series A 5.25% 1/1/36 | | | 705,000 | | | | 727,038 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.75% 7/1/53 | | | 3,635,000 | | | | 3,820,530 | |
Series A-1 5.00% 7/1/58 | | | 750,000 | | | | 800,775 | |
Series A-1 5.273% 7/1/46 ^ | | | 970,000 | | | | 278,264 | |
Series A-2 4.329% 7/1/40 | | | 1,245,000 | | | | 1,307,263 | |
Regional Public Transportation Authority | | | | | | | | |
(Maricopa County Public Transportation) 5.25% 7/1/24 | | | 500,000 | | | | 595,685 | |
| | | | | | | | |
| | | | 10,249,543 | |
| | | | | | | | |
State General Obligation Bonds – 1.30% | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 5.00% 7/1/41 ‡ | | | 235,000 | | | | 147,169 | |
Series A 5.375% 7/1/33 ‡ | | | 270,000 | | | | 190,687 | |
Series A 8.00% 7/1/35 ‡ | | | 355,000 | | | | 216,994 | |
Series B 5.75% 7/1/38 ‡ | | | 680,000 | | | | 481,950 | |
| | | | | | | | |
| | | | 1,036,800 | |
| | | | | | | | |
Transportation Revenue Bonds – 5.13% | | | | | | | | |
Arizona Department of Transportation State Highway Fund Revenue | | | | | | | | |
5.00% 7/1/35 | | | 500,000 | | | | 611,650 | |
Phoenix Civic Improvement Airport Revenue | | | | | | | | |
(Senior Lien) | | | | | | | | |
4.00% 7/1/48 (AMT) | | | 500,000 | | | | 546,020 | |
5.00% 7/1/32 (AMT) | | | 500,000 | | | | 549,500 | |
Series A 5.00% 7/1/36 (AMT) | | | 1,000,000 | | | | 1,192,420 | |
Series B 5.00% 7/1/37 | | | 1,000,000 | | | | 1,192,690 | |
| | | | | | | | |
| | | | 4,092,280 | |
| | | | | | | | |
Water & Sewer Revenue Bonds – 6.36% | | | | | | | | |
Arizona Water Infrastructure Finance Authority | | | | | | | | |
(Water Quality Revenue) Series A 5.00% 10/1/26 | | | 1,000,000 | | | | 1,186,840 | |
55
Schedules of investments
Delaware Tax-Free Arizona Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Water & Sewer Revenue Bonds (continued) | | | | | | | | |
Central Arizona Water Conservation District | | | | | | | | |
(Central Arizona Project) 5.00% 1/1/31 | | | 600,000 | | | $ | 733,812 | |
Guam Government Waterworks Authority Revenue | | | | | | | | |
5.00% 7/1/37 | | | 250,000 | | | | 292,253 | |
Mesa Utility System Revenue | | | | | | | | |
4.00% 7/1/31 | | | 850,000 | | | | 983,535 | |
Phoenix Civic Improvement Corporation | | | | | | | | |
(Junior Lien) | | | | | | | | |
5.00% 7/1/27 | | | 1,000,000 | | | | 1,256,140 | |
5.00% 7/1/31 | | | 500,000 | | | | 621,570 | |
| | | | | | | | |
| | | | 5,074,150 | |
| | | | | | | | |
Total Municipal Bonds (cost $74,051,044) | | | | 78,139,032 | |
| | | | | | | | |
| | | | | | | | |
| | | |
Short-Term Investments – 1.25% | | | | | | | | |
Variable Rate Demand Note – 1.25%¤ | | | | | | | | |
Phoenix Industrial Development Authority | | | | | | | | |
(Mayo Clinic) Series B 0.01% 11/15/52 (SPA - Northern Trust Company) | | | 1,000,000 | | | | 1,000,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $1,000,000) | | | | 1,000,000 | |
| | | | | | | | |
Total Value of Securities–99.15%
(cost $75,051,044) | | | | | | $ | 79,139,032 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| ● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $5,800,096, which represents 7.27% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
| ‡ | Non-income producing security. Security is currently in default. |
56
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 8 in “Notes to financial statements.” |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
ACA – Insured by American Capital Access
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
57
| | |
| Schedules of investments |
| Delaware Tax-Free California Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds – 96.90% | | | | | | | | |
Corporate Revenue Bonds – 7.31% | | | | | | | | |
Golden State Tobacco Securitization Settlement Revenue | | | | | | | | |
(Asset-Backed) Series A-2 5.00% 6/1/47 | | | 2,000,000 | | | $ | 2,056,440 | |
(Capital Appreciation Asset-Backed) Subordinate Series B
1.548% 6/1/47 ^ | | | 1,615,000 | | | | 340,975 | |
Inland Empire Tobacco Securitization Authority | | | | | | | | |
(Capital Appreciation Turbo Asset-Backed) Series F 144A
1.46% 6/1/57 #, ^ | | | 16,655,000 | | | | 677,192 | |
M-S-R Energy Authority Revenue | | | | | | | | |
Series B 6.50% 11/1/39 | | | 500,000 | | | | 796,565 | |
Tobacco Securitization Authority of Southern California | | | | | | | | |
(San Diego County) | | | | | | | | |
Capital Appreciation Second Subordinate Series C 0.558% 6/1/46 ^ | | | 9,285,000 | | | | 1,764,614 | |
Capital Appreciation Third Subordinate Series D 0.307% 6/1/46 ^ | | | 3,460,000 | | | | 574,014 | |
| | | | | | | | |
| | | | 6,209,800 | |
| | | | | | | | |
Education Revenue Bonds – 31.34% | | | | | | | | |
California Educational Facilities Authority | | | | | | | | |
(Loma Linda University) Series A 5.00% 4/1/47 | | | 1,000,000 | | | | 1,129,740 | |
(Stanford University) | | | | | | | | |
Series U-1 5.25% 4/1/40 | | | 775,000 | | | | 1,211,519 | |
Series V-1 5.00% 5/1/49 | | | 2,600,000 | | | | 4,237,662 | |
California Municipal Finance Authority | | | | | | | | |
(Bella Mente Montessori Academy Project) Series A 144A 5.00% 6/1/48 # | | | 500,000 | | | | 523,325 | |
(Biola University) 5.00% 10/1/39 | | | 1,000,000 | | | | 1,130,100 | |
(California Baptist University) Series A 144A 5.375% 11/1/40 # | | | 1,000,000 | | | | 1,056,350 | |
(CHF - Davis I, LLC - West Village Student Housing Project)
5.00% 5/15/48 | | | 1,000,000 | | | | 1,139,220 | |
(Creative Center of Los Altos Project - Pinewood School & Oakwood School) Series B 144A 4.50% 11/1/46 # | | | 500,000 | | | | 495,415 | |
(Julian Charter School Project) Series A 144A 5.625% 3/1/45 # | | | 600,000 | | | | 605,424 | |
58
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Education Revenue Bonds (continued) | | | | | | | | |
California Municipal Finance Authority | | | | | | | | |
(Literacy First Charter Schools Project) Series A 5.00% 12/1/49 | | | 750,000 | | | $ | 865,522 | |
(Southwestern Law School) 6.50% 11/1/41 | | | 1,140,000 | | | | 1,200,420 | |
California Public Finance Authority Educational Facilities Revenue | | | | | | | | |
(Trinity Classical Academy Project) Series A 144A 5.00% 7/1/54 # | | | 500,000 | | | | 510,745 | |
California School Finance Authority | | | | | | | | |
(Aspire Public Schools - Obligated Group) Series A 144A
5.00% 8/1/45 # | | | 715,000 | | | | 795,123 | |
(Encore Education Obligated Group) Series A 144A 5.00% 6/1/42 # | | | 500,000 | | | | 467,870 | |
(Escuela Popular Project) 144A 6.50% 7/1/50 # | | | 250,000 | | | | 272,508 | |
(Granada Hills Charter Obligated Group) 144A 5.00% 7/1/49 # | | | 475,000 | | | | 524,452 | |
(Green Dot Public Schools Project) Series A 144A 5.00% 8/1/35 # | | | 1,000,000 | | | | 1,116,760 | |
(Grimmway Schools - Obligated Group) Series A 144A 5.00% 7/1/36 # | | | 500,000 | | | | 524,950 | |
(ICEF - View Park Elementary & Middle Schools) Series A 5.625% 10/1/34 | | | 575,000 | | | | 616,319 | |
(KIPP LA Projects) Series A 5.125% 7/1/44 | | | 1,000,000 | | | | 1,098,150 | |
(KIPP SoCal Projects) Series A 144A 5.00% 7/1/49 # | | | 1,000,000 | | | | 1,185,870 | |
(Partnerships to Uplift Communities Valley Project) Series A 144A
6.75% 8/1/44 # | | | 1,000,000 | | | | 1,094,920 | |
California State University Systemwide Revenue Series A 5.00% 11/1/47 | | | 1,000,000 | | | | 1,217,510 | |
California Statewide Communities Development Authority Charter School Revenue | | | | | | | | |
(Green Dot Public Schools - Animo Inglewood Charter High School Project) Series A 7.25% 8/1/41 | | | 300,000 | | | | 312,396 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(California Baptist University) Series A 6.125% 11/1/33 | | | 750,000 | | | | 819,495 | |
59
Schedules of investments
Delaware Tax-Free California Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Education Revenue Bonds (continued) | | | | | | | | |
California Statewide Communities Development Authority Student Housing Revenue | | | | | | | | |
(University of California Irvine East Campus Apartments) 5.375% 5/15/38 | | | 1,000,000 | | | $ | 1,019,870 | |
Mt. San Antonio Community College District Convertible Capital Appreciation Election 2008 | | | | | | | | |
Series A 0.00% 8/1/28 ~ | | | 1,000,000 | | | | 1,161,450 | |
University of California | | | | | | | | |
Series BE 5.00% 5/15/32 | | | 220,000 | | | | 301,341 | |
| | | | | | | | |
| | | | 26,634,426 | |
| | | | | | | | |
Electric Revenue Bonds – 0.84% | | | | | | | | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 70,000 | | | | 48,300 | |
Series AAA 5.25% 7/1/25 ‡ | | | 40,000 | | | | 27,650 | |
Series CCC 5.25% 7/1/27 ‡ | | | 325,000 | | | | 224,656 | |
Series WW 5.00% 7/1/28 ‡ | | | 310,000 | | | | 213,900 | |
Series XX 4.75% 7/1/26 ‡ | | | 45,000 | | | | 30,825 | |
Series XX 5.75% 7/1/36 ‡ | | | 150,000 | | | | 104,625 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 35,000 | | | | 23,975 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 55,000 | | | | 38,019 | |
| | | | | | | | |
| | | | 711,950 | |
| | | | | | | | |
Healthcare Revenue Bonds – 17.58% | | | | | | | | |
ABAG Finance Authority for Nonprofit Corporations | | | | | | | | |
(Episcopal Senior Communities) 6.125% 7/1/41 | | | 850,000 | | | | 866,481 | |
(Sharp HealthCare) Series A 5.00% 8/1/28 | | | 250,000 | | | | 265,075 | |
California Health Facilities Financing Authority Revenue | | | | | | | | |
(Cedars-Sinai Medical Center) Series B 4.00% 8/15/36 | | | 500,000 | | | | 568,135 | |
(Children’s Hospital Los Angeles) | | | | | | | | |
Series A 5.00% 11/15/34 | | | 500,000 | | | | 528,920 | |
Series A 5.00% 8/15/47 | | | 500,000 | | | | 562,355 | |
(Dignity Health) Series E 5.625% 7/1/25 | | | 1,000,000 | | | | 1,003,830 | |
(Kaiser Permanente) Subordinate Series A-2 4.00% 11/1/44 | | | 1,005,000 | | | | 1,126,143 | |
(Sutter Health) Series D 5.25% 8/15/31 | | | 1,000,000 | | | | 1,044,190 | |
60
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
California Municipal Finance Authority Revenue | | | | | | | | |
(Community Medical Centers) | | | | | | | | |
Series A 5.00% 2/1/42 | | | 750,000 | | | $ | 867,668 | |
Series A 5.00% 2/1/47 | | | 250,000 | | | | 287,245 | |
(Goodwill Industry of Sacramento Valley & Northern Nevada Project) 5.00% 1/1/35 | | | 635,000 | | | | 549,808 | |
(Northbay Healthcare Group) Series A 5.25% 11/1/47 | | | 500,000 | | | | 550,985 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(Adventist Health System/West) Series A 4.00% 3/1/48 | | | 1,000,000 | | | | 1,112,460 | |
(Covenant Retirement Communities) Series C 5.625% 12/1/36 | | | 1,000,000 | | | | 1,091,280 | |
(Emanate Health) Series A 4.00% 4/1/45 | | | 255,000 | | | | 290,629 | |
(Episcopal Communities & Services) 5.00% 5/15/32 | | | 600,000 | | | | 631,026 | |
(Huntington Memorial Hospital) 4.00% 7/1/48 | | | 500,000 | | | | 556,095 | |
(Marin General Hospital - Green Bonds) Series A 4.00% 8/1/45 | | | 500,000 | | | | 522,545 | |
(Redlands Community Hospital) 5.00% 10/1/46 | | | 1,000,000 | | | | 1,110,980 | |
Palomar Health | | | | | | | | |
5.00% 11/1/47 (AGM) | | | 500,000 | | | | 576,145 | |
San Buenaventura | | | | | | | | |
(Community Memorial Health System) 7.50% 12/1/41 | | | 785,000 | | | | 826,440 | |
| | | | | | | | |
| | | | 14,938,435 | |
| | | | | | | | |
Housing Revenue Bonds – 3.85% | | | | | | | | |
California Municipal Finance Authority Mobile Home Park Revenue | | | | | | | | |
(Caritas Projects) Series A 5.50% 8/15/47 | | | 250,000 | | | | 263,958 | |
Independent Cities Finance Authority Mobile Home Park Revenue | | | | | | | | |
(Pillar Ridge) | | | | | | | | |
Series A 5.25% 5/15/44 | | | 1,000,000 | | | | 1,087,030 | |
Series A 5.25% 5/15/49 | | | 850,000 | | | | 922,105 | |
61
Schedules of investments
Delaware Tax-Free California Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Housing Revenue Bonds (continued) | | | | | | | | |
Santa Clara County Multifamily Housing Authority Revenue | | | | | | | | |
(RiverTown Apartments Project) Series A 5.85% 8/1/31 (AMT) | | | 1,000,000 | | | $ | 1,003,450 | |
| | | | | | | | |
| | | | 3,276,543 | |
| | | | | | | | |
Lease Revenue Bonds – 7.08% | | | | | | | | |
Abag Finance Authority for Nonprofit Corporations | | | | | | | | |
(Jackson Laboratory) 5.00% 7/1/37 | | | 1,000,000 | | | | 1,055,110 | |
California Infrastructure & Economic Development Bank | | | | | | | | |
(Academy of Motion Picture Arts & Sciences Obligated Group) Series A 5.00% 11/1/41 | | | 1,000,000 | | | | 1,112,360 | |
California State Public Works Board Lease Revenue | | | | | | | | |
(Department of Corrections and Rehabilitation) Series C 5.00% 10/1/26 | | | 1,000,000 | | | | 1,050,090 | |
Golden State Tobacco Securitization Settlement Revenue | | | | | | | | |
(Enhanced Asset-Backed) Series A 5.00% 6/1/29 | | | 1,000,000 | | | | 1,115,140 | |
Oceanside Public Financing Authority | | | | | | | | |
(El Corazon Aquatics Center Project) 4.00% 11/1/49 | | | 1,000,000 | | | | 1,129,810 | |
San Jose Financing Authority Lease Revenue | | | | | | | | |
(Civic Center Project) Series A 5.00% 6/1/33 | | | 500,000 | | | | 551,405 | |
| | | | | | | | |
| | | | 6,013,915 | |
| | | | | | | | |
Local General Obligation Bonds – 1.82% | | | | | | | | |
Anaheim School District Capital Appreciation Election 2002 | | | | | | | | |
4.58% 8/1/25 (NATL)^ | | | 1,000,000 | | | | 959,350 | |
San Francisco Bay Area Rapid Transit District Election of 2016 | | | | | | | | |
(Green Bonds) Series B-1 4.00% 8/1/44 | | | 500,000 | | | | 591,665 | |
| | | | | | | | |
| | | | 1,551,015 | |
| | | | | | | | |
Pre-Refunded Bonds – 3.91% | | | | | | | | |
Anaheim Public Financing Authority Revenue | | | | | | | | |
(Anaheim Electric System Distribution Facilities) Series A 5.00% 10/1/25-21 § | | | 800,000 | | | | 822,744 | |
62
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
Pre-Refunded Bonds (continued) | | | | | | | | |
La Verne | | | | | | | | |
(Brethren Hillcrest Homes) 5.00% 5/15/36-22 § | | | 750,000 | | | $ | 817,418 | |
Pittsburg Unified School District Financing Authority Revenue | | | | | | | | |
(Pittsburg Unified School District Bond Program) 5.50% 9/1/46-21 (AGM)§ | | | 800,000 | | | | 842,384 | |
Rancho Santa Fe Community Services District Financing Authority Revenue | | | | | | | | |
(Superior Lien Bonds) Series A 5.75% 9/1/30-21 § | | | 800,000 | | | | 843,960 | |
| | | | | | | | |
| | | | 3,326,506 | |
| | | | | | | | |
Special Tax Revenue Bonds – 9.04% | | | | | | | | |
GDB Debt Recovery Authority of Puerto Rico | | | | | | | | |
7.50% 8/20/40 | | | 503,323 | | | | 345,405 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.75% 7/1/53 | | | 1,745,000 | | | | 1,834,065 | |
Series A-1 5.00% 7/1/58 | | | 2,585,000 | | | | 2,760,005 | |
Series A-1 5.349% 7/1/46 ^ | | | 3,890,000 | | | | 1,115,924 | |
Sacramento Transient Occupancy Tax Revenue | | | | | | | | |
(Convention Center Complex) Senior Series A 5.00% 6/1/48 | | | 1,000,000 | | | | 1,109,020 | |
Yucaipa Special Tax Community Facilities District No. 98-1 | | | | | | | | |
(Chapman Heights) 5.375% 9/1/30 | | | 500,000 | | | | 520,910 | |
| | | | | | | | |
| | | | 7,685,329 | |
| | | | | | | | |
State General Obligation Bonds – 4.83% | | | | | | | | |
California | | | | | | | | |
(Various Purpose) | | | | | | | | |
5.00% 4/1/32 | | | 300,000 | | | | 427,236 | |
5.00% 8/1/46 | | | 1,000,000 | | | | 1,218,640 | |
5.25% 4/1/35 | | | 1,000,000 | | | | 1,073,910 | |
Commonwealth of Puerto Rico | | | | | | | | |
(Public Improvement) | | | | | | | | |
Series A 5.00% 7/1/24 ‡ | | | 185,000 | | | | 131,581 | |
Series A 5.00% 7/1/41 ‡ | | | 300,000 | | | | 187,875 | |
Series A 5.25% 7/1/34 ‡ | | | 155,000 | | | | 110,631 | |
Series A 5.375% 7/1/33 ‡ | | | 350,000 | | | | 247,188 | |
Series B 5.75% 7/1/38 ‡ | | | 430,000 | | | | 304,763 | |
63
Schedules of investments
Delaware Tax-Free California Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
State General Obligation Bonds (continued) | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
(Public Improvement) | | | | | | | | |
Series C 6.00% 7/1/39 ‡ | | | 450,000 | | | $ | 316,687 | |
Unrefunded Series B 5.00% 7/1/35 ‡ | | | 125,000 | | | | 88,906 | |
| | | | | | | | |
| | | | 4,107,417 | |
| | | | | | | | |
Transportation Revenue Bonds – 9.30% | | | | | | | | |
California Municipal Finance Authority Senior Lien | | | | | | | | |
(LINXS APM Project) Series A 5.00% 12/31/47 (AMT) | | | 645,000 | | | | 738,099 | |
Long Beach Marina Revenue | | | | | | | | |
(Alamitos Bay Marina Project) 5.00% 5/15/45 | | | 500,000 | | | | 539,340 | |
Los Angeles Department of Airports | | | | | | | | |
(Los Angeles International Airport) Senior Series D 5.00% 5/15/36 (AMT) | | | 1,000,000 | | | | 1,152,930 | |
Riverside County Transportation Commission Senior Lien | | | | | | | | |
(Current Interest Obligations) Series A 5.75% 6/1/44 | | | 500,000 | | | | 545,610 | |
Sacramento County Airport System Revenue | | | | | | | | |
Series C 5.00% 7/1/39 (AMT) | | | 500,000 | | | | 598,565 | |
Subordinate Series B 5.00% 7/1/41 | | | 500,000 | | | | 583,965 | |
San Diego Redevelopment Agency | | | | | | | | |
(Centre City Redevelopment Project) Series A 6.40% 9/1/25 | | | 870,000 | | | | 874,307 | |
San Francisco City & County Airports Commission | | | | | | | | |
(San Francisco International Airport) | | | | | | | | |
Second Series A 5.00% 5/1/49 (AMT) | | | 1,000,000 | | | | 1,207,140 | |
Second Series E 5.00% 5/1/50 (AMT) | | | 500,000 | | | | 602,995 | |
San Francisco Municipal Transportation Agency Revenue | | | | | | | | |
Series B 5.00% 3/1/37 | | | 1,000,000 | | | | 1,058,120 | |
| | | | | | | | |
| | | | 7,901,071 | |
| | | | | | | | |
Total Municipal Bonds (cost $77,333,851) | | | | 82,356,407 | |
| | | | | | | | |
| | | | | | | | |
| | | |
Short-Term Investments – 1.12% | | | | | | | | |
Variable Rate Demand Notes – 1.12%¤ | | | | | | | | |
California | | | | | | | | |
Series A2 0.01% 5/1/34 (LOC - State Street Bank and Trust) | | | 150,000 | | | | 150,000 | |
64
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Short-Term Investments (continued) | |
University of California | | | | | | | | |
Series AL-2 0.01% 5/15/48 | | | 800,000 | | | $ | 800,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $950,000) | | | | 950,000 | |
| | | | | | | | |
Total Value of Securities–98.02%
(cost $78,283,851) | | | | | | $ | 83,306,407 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $9,850,904, which represents 11.59% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
| ~ | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Stated rate in effect at August 31, 2020. |
| ‡ | Non-income producing security. Security is currently in default. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 8 in “Notes to financial statements.” |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
CHF – Collegiate Housing Foundation
ICEF – Inner City Education Foundation
KIPP – Knowledge is Power Program
LLC – Limited Liability Corporation
LOC – Letter of Credit
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
65
| | |
| Schedules of investments |
| Delaware Tax-Free Colorado Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds – 98.60% | | | | | | | | |
Corporate Revenue Bonds – 3.23% | | | | | | | | |
Denver City & County | | | | | | | | |
(United Airlines Project) 5.00% 10/1/32 (AMT) | | | 415,000 | | | $ | 419,963 | |
Public Authority for Colorado Energy Natural Gas Revenue | | | | | | | | |
6.50% 11/15/38 | | | 4,250,000 | | | | 6,776,328 | |
| | | | | | | | |
| | | | 7,196,291 | |
| | | | | | | | |
Education Revenue Bonds – 11.94% | | | | | | | | |
Board of Governors of the Colorado State University | | | | | | | | |
System Enterprise Revenue | | | | | | | | |
Series A 5.00% 3/1/43 | | | 2,480,000 | | | | 3,619,783 | |
Board of Trustees For Colorado Mesa University Enterprise Revenue | | | | | | | | |
Series B 5.00% 5/15/44 | | | 1,000,000 | | | | 1,247,410 | |
Series B 5.00% 5/15/49 | | | 750,000 | | | | 929,910 | |
Colorado Educational & Cultural Facilities Authority Revenue | | | | | | | | |
(Alexander Dawson School-Nevada Project) 5.00% 5/15/29 | | | 1,230,000 | | | | 1,476,861 | |
(Aspen Ridge School Project) | | | | | | | | |
Series A 144A 5.00% 7/1/36 # | | | 500,000 | | | | 510,495 | |
Series A 144A 5.25% 7/1/46 # | | | 1,350,000 | | | | 1,377,567 | |
(Atlas Preparatory Charter School) 144A 5.25% 4/1/45 # | | | 1,300,000 | | | | 1,320,540 | |
(Charter School Project) 5.00% 7/15/37 | | | 1,150,000 | | | | 1,220,564 | |
(Community Leadership Academy, Inc. Second Campus Project)
7.45% 8/1/48 | | | 1,000,000 | | | | 1,101,480 | |
(Johnson & Wales University) Series A 5.25% 4/1/37 | | | 1,790,000 | | | | 1,909,482 | |
(Liberty Common Charter School Project) Series A 5.00% 1/15/39 | | | 1,000,000 | | | | 1,086,920 | |
(Littleton Preparatory Charter School Project) | | | | | | | | |
5.00% 12/1/33 | | | 450,000 | | | | 458,874 | |
5.00% 12/1/42 | | | 540,000 | | | | 545,902 | |
(Loveland Classical Schools Project) | | | | | | | | |
144A 5.00% 7/1/36 # | | | 625,000 | | | | 638,900 | |
144A 5.00% 7/1/46 # | | | 500,000 | | | | 502,725 | |
(Pinnacle Charter School Project) 5.00% 6/1/26 | | | 700,000 | | | | 766,444 | |
66
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
(Science Technology Engineering and Math School Project) | | | | | | | | |
5.00% 11/1/44 | | | 890,000 | | | $ | 950,030 | |
5.00% 11/1/54 | | | 1,500,000 | | | | 1,594,665 | |
(Skyview Charter School) | | | | | | | | |
144A 5.375% 7/1/44 # | | | 860,000 | | | | 878,258 | |
144A 5.50% 7/1/49 # | | | 870,000 | | | | 890,715 | |
(University of Denver Project) | | | | | | | | |
Series A 4.00% 3/1/35 | | | 400,000 | | | | 448,572 | |
Series A 4.00% 3/1/36 | | | 550,000 | | | | 614,741 | |
(University of Lab Charter School) 5.00% 12/15/45 | | | 500,000 | | | | 539,755 | |
(Vail Mountain School Project) | | | | | | | | |
4.00% 5/1/46 | | | 80,000 | | | | 78,577 | |
5.00% 5/1/31 | | | 1,000,000 | | | | 1,036,410 | |
(Windsor Charter Academy Project) 144A 5.00% 9/1/46 # | | | 890,000 | | | | 891,024 | |
| | | | | | | | |
| | | | 26,636,604 | |
| | | | | | | | |
Electric Revenue Bonds – 3.88% | | | | | | | | |
Loveland Colorado Electric & Communications Enterprise Revenue | | | | | | | | |
Series A 5.00% 12/1/44 | | | 2,185,000 | | | | 2,711,935 | |
Platte River Power Authority Revenue | | | | | | | | |
Series JJ 5.00% 6/1/27 | | | 3,300,000 | | | | 4,120,842 | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 170,000 | | | | 117,300 | |
Series AAA 5.25% 7/1/25 ‡ | | | 95,000 | | | | 65,669 | |
Series CCC 5.25% 7/1/27 ‡ | | | 705,000 | | | | 487,331 | |
Series WW 5.00% 7/1/28 ‡ | | | 660,000 | | | | 455,400 | |
Series XX 4.75% 7/1/26 ‡ | | | 105,000 | | | | 71,925 | |
Series XX 5.25% 7/1/40 ‡ | | | 295,000 | | | | 203,919 | |
Series XX 5.75% 7/1/36 ‡ | | | 365,000 | | | | 254,587 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 85,000 | | | | 58,225 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 140,000 | | | | 96,775 | |
| | | | | | | | |
| | | | 8,643,908 | |
| | | | | | | | |
Healthcare Revenue Bonds – 25.76% | | | | | | | | |
Colorado Health Facilities Authority Revenue | | | | | | | | |
(AdventHealth Obligated Group) Series A 4.00% 11/15/43 | | | 4,000,000 | | | | 4,576,520 | |
(American Baptist) | | | | | | | | |
7.625% 8/1/33 | | | 150,000 | | | | 158,928 | |
67
| | |
| Schedules of investments |
| Delaware Tax-Free Colorado Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Colorado Health Facilities Authority Revenue | | | | | | | | |
(American Baptist) | | | | | | | | |
8.00% 8/1/43 | | | 1,000,000 | | | $ | 1,063,680 | |
(Bethesda Project) Series A-1 5.00% 9/15/48 | | | 2,250,000 | | | | 2,414,498 | |
(Cappella of Grand Junction Project) 144A 5.00% 12/1/54 # | | | 1,000,000 | | | | 975,900 | |
(Christian Living Community Project) | | | | | | | | |
5.25% 1/1/37 | | | 1,500,000 | | | | 1,507,725 | |
6.375% 1/1/41 | | | 1,000,000 | | | | 1,030,930 | |
(CommonSpirit Health) | | | | | | | | |
Series A-1 4.00% 8/1/39 | | | 2,000,000 | | | | 2,247,880 | |
Series A-1 4.00% 8/1/44 | | | 2,000,000 | | | | 2,218,460 | |
Series A-2 4.00% 8/1/49 | | | 3,000,000 | | | | 3,307,320 | |
Series A-2 5.00% 8/1/38 | | | 1,500,000 | | | | 1,832,070 | |
Series A-2 5.00% 8/1/39 | | | 1,505,000 | | | | 1,832,955 | |
(Covenant Retirement Communities) | | | | | | | | |
Series A 5.00% 12/1/33 | | | 4,000,000 | | | | 4,167,120 | |
Series A 5.00% 12/1/35 | | | 1,000,000 | | | | 1,079,560 | |
(Craig Hospital Project) 5.00% 12/1/32 | | | 3,500,000 | | | | 3,755,185 | |
(Frasier Meadows Retirement Community Project) Series B 5.00% 5/15/48 | | | 660,000 | | | | 694,346 | |
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | | | 2,000,000 | | | | 2,121,720 | |
(National Jewish Health Project) 5.00% 1/1/27 | | | 300,000 | | | | 313,437 | |
(Sanford Health) Series A 5.00% 11/1/44 | | | 4,500,000 | | | | 5,547,285 | |
(SCL Health System) | | | | | | | | |
Series A 4.00% 1/1/37 | | | 2,150,000 | | | | 2,514,597 | |
Series A 4.00% 1/1/38 | | | 3,895,000 | | | | 4,539,973 | |
Series A 5.00% 1/1/44 | | | 3,050,000 | | | | 3,352,621 | |
(Sunny Vista Living Center) Series A 144A 6.25% 12/1/50 # | | | 935,000 | | | | 939,030 | |
(Vail Valley Medical Center Project) 5.00% 1/15/35 | | | 1,000,000 | | | | 1,163,590 | |
(Valley View Hospital Association Project) Series A 4.00% 5/15/35 | | | 685,000 | | | | 762,343 | |
Denver Health & Hospital Authority Health Care Revenue | | | | | | | | |
Series A 4.00% 12/1/39 | | | 1,000,000 | | | | 1,069,670 | |
Series A 4.00% 12/1/40 | | | 250,000 | | | | 266,632 | |
68
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | | | | | | | | |
(Auxilio Mutuo) | | | | | | | | |
Series A 6.00% 7/1/33 | | | 1,945,000 | | | $ | 1,996,134 | |
| | | | | | | | |
| | | | 57,450,109 | |
| | | | | | | | |
Housing Revenue Bonds – 0.09% | | | | | | | | |
Colorado Housing and Finance Authority | | | | | | | | |
(Single Family Program Class 1) | | | | | | | | |
Series AA 4.50% 5/1/23 (GNMA) | | | 95,000 | | | | 95,549 | |
Series AA 4.50% 11/1/23 (GNMA) | | | 95,000 | | | | 95,544 | |
| | | | | | | | |
| | | | 191,093 | |
| | | | | | | | |
Lease Revenue Bonds – 2.04% | | | | | | | | |
Colorado Department of Transportation Certificates of Participation | | | | | | | | |
5.00% 6/15/34 | | | 660,000 | | | | 806,098 | |
5.00% 6/15/36 | | | 1,055,000 | | | | 1,284,557 | |
Denver Health & Hospital Authority | | | | | | | | |
4.00% 12/1/38 | | | 750,000 | | | | 802,230 | |
Regional Transportation District Certificates of Participation | | | | | | | | |
Series A 5.00% 6/1/33 | | | 1,500,000 | | | | 1,655,025 | |
| | | | | | | | |
| | | | 4,547,910 | |
| | | | | | | | |
Local General Obligation Bonds – 11.32% | | | | | | | | |
Adams & Weld Counties School District No. 27J Brighton | | | | | | | | |
4.00% 12/1/30 | | | 300,000 | | | | 344,148 | |
4.00% 12/1/31 | | | 1,000,000 | | | | 1,145,300 | |
Arapahoe County School District No. 6 Littleton | | | | | | | | |
(Littleton Public Schools) | | | | | | | | |
Series A 5.50% 12/1/33 | | | 1,000,000 | | | | 1,337,470 | |
Series A 5.50% 12/1/38 | | | 350,000 | | | | 458,899 | |
Beacon Point Metropolitan District | | | | | | | | |
5.00% 12/1/30 (AGM) | | | 1,130,000 | | | | 1,351,796 | |
Boulder Valley School District No. Re-2 Boulder | | | | | | | | |
Series A 4.00% 12/1/48 | | | 1,370,000 | | | | 1,601,393 | |
Central Colorado Water Conservancy District | | | | | | | | |
(Limited Tax) 5.00% 12/1/33 | | | 1,000,000 | | | | 1,134,990 | |
69
| | |
| Schedules of investments |
| Delaware Tax-Free Colorado Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Local General Obligation Bonds (continued) | | | | | | | | |
Commerce City Northern Infrastructure General Improvement District | | | | | | | | |
5.00% 12/1/32 (AGM) | | | 2,125,000 | | | $ | 2,337,904 | |
Denver International Business CenterMetropolitan District No. 1 | | | | | | | | |
5.00% 12/1/30 | | | 350,000 | | | | 352,065 | |
Eaton Area Park & Recreation District | | | | | | | | |
5.25% 12/1/34 | | | 360,000 | | | | 369,479 | |
5.50% 12/1/38 | | | 455,000 | | | | 469,005 | |
El Paso County School District No 2. Harrison | | | | | | | | |
5.00% 12/1/38 | | | 1,000,000 | | | | 1,276,020 | |
Grand River Hospital District | | | | | | | | |
5.25% 12/1/35 (AGM) | | | 1,000,000 | | | | 1,171,940 | |
Jefferson County School District No. R-1 | | | | | | | | |
5.25% 12/15/24 | | | 1,250,000 | | | | 1,514,662 | |
Leyden Rock Metropolitan District No. 10 | | | | | | | | |
Series A 5.00% 12/1/45 | | | 1,000,000 | | | | 1,026,510 | |
Sierra Ridge Metropolitan District No. 2 | | | | | | | | |
Series A 5.50% 12/1/46 | | | 1,000,000 | | | | 1,031,360 | |
Weld County Reorganized School District No. Re-8 | | | | | | | | |
5.00% 12/1/31 | | | 990,000 | | | | 1,234,263 | |
5.00% 12/1/32 | | | 660,000 | | | | 818,763 | |
Weld County School District No. Re-1 | | | | | | | | |
5.00% 12/15/31 (AGM) | | | 1,000,000 | | | | 1,247,980 | |
Weld County School District No. Re-2 Eaton | | | | | | | | |
5.00% 12/1/44 | | | 2,000,000 | | | | 2,563,440 | |
Weld County School District No. Re-3J | | | | | | | | |
5.00% 12/15/34 (BAM) | | | 2,000,000 | | | | 2,468,440 | |
| | | | | | | | |
| | | | 25,255,827 | |
| | | | | | | | |
Pre-Refunded Bonds – 6.64% | | | | | | | | |
Colorado Health Facilities Authority Revenue | | | | | | | | |
(Catholic Health Initiatives) | | | | | | | | |
Series A 5.00% 2/1/41-21 § | | | 2,250,000 | | | | 2,294,280 | |
Series A 5.25% 2/1/33-21 § | | | 1,000,000 | | | | 1,020,710 | |
Series A 5.25% 1/1/45-23 § | | | 2,000,000 | | | | 2,227,260 | |
(NCMC Project) 4.00% 5/15/32-26 § | | | 2,000,000 | | | | 2,395,560 | |
70
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Pre-Refunded Bonds (continued) | | | | | | | | |
(The Evangelical Lutheran Good Samaritan Society Project) 5.625% 6/1/43-23 § | | | 1,150,000 | | | $ | 1,318,774 | |
(Total Long-Term Care National Obligated Group Project) Series A 6.25% 11/15/40-20 § | | | 750,000 | | | | 759,127 | |
Denver Health & Hospital Authority Health Care Revenue | | | | | | | | |
(Recovery Zone Facilities) 5.625% 12/1/40-20 § | | | 2,500,000 | | | | 2,533,000 | |
University of Colorado | | | | | | | | |
Series A 5.00% 6/1/33-23 § | | | 2,000,000 | | | | 2,262,280 | |
| | | | | | | | |
| | | | 14,810,991 | |
| | | | | | | | |
Special Tax Revenue Bonds – 18.84% | | | | | | | | |
Broomfield Colorado Sales & Use Tax Revenue | | | | | | | | |
5.00% 12/1/33 | | | 1,000,000 | | | | 1,261,300 | |
Central Platte Valley Metropolitan District | | | | | | | | |
5.00% 12/1/43 | | | 725,000 | | | | 748,838 | |
Commerce City | | | | | | | | |
5.00% 8/1/44 (AGM) | | | 1,500,000 | | | | 1,720,275 | |
Denver Convention Center Hotel Authority Revenue | | | | | | | | |
5.00% 12/1/40 | | | 2,660,000 | | | | 2,827,660 | |
Denver International Business CenterMetropolitan District No. 1 | | | | | | | | |
5.375% 12/1/35 | | | 1,750,000 | | | | 1,760,290 | |
Fountain Urban Renewal Authority Tax Increment Revenue | | | | | | | | |
(Academy Highlands Project) Series A 5.50% 11/1/44 | | | 1,375,000 | | | | 1,409,801 | |
Guam Government Business Privilege Tax Revenue | | | | | | | | |
Series A 5.125% 1/1/42 | | | 1,250,000 | | | | 1,282,725 | |
Series A 5.25% 1/1/36 | | | 1,675,000 | | | | 1,727,361 | |
Lincoln Park Metropolitan District | | | | | | | | |
5.00% 12/1/46 (AGM) | | | 1,000,000 | | | | 1,207,300 | |
Plaza Metropolitan District No. 1 | | | | | | | | |
144A 5.00% 12/1/40 # | | | 1,265,000 | | | | 1,289,149 | |
Prairie Center Metropolitan District No. 3 | | | | | | | | |
Series A 144A 5.00% 12/15/41 # | | | 1,000,000 | | | | 1,020,460 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
Series A-2 4.536% 7/1/53 | | | 3,000,000 | | | | 3,110,310 | |
(Restructured) | | | | | | | | |
Series A-1 4.75% 7/1/53 | | | 3,445,000 | | | | 3,620,833 | |
71
| | |
| Schedules of investments |
| Delaware Tax-Free Colorado Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 5.00% 7/1/58 | | | 3,122,000 | | | $ | 3,333,359 | |
Regional Transportation District | | | | | | | | |
6.00% 1/15/34 | | | 1,450,000 | | | | 1,452,856 | |
6.00% 1/15/41 | | | 2,400,000 | | | | 2,404,728 | |
Regional Transportation District Sales Tax Revenue | | | | | | | | |
Series A 5.00% 11/1/30 | | | 670,000 | | | | 827,611 | |
Series A 5.00% 11/1/31 | | | 1,495,000 | | | | 1,831,674 | |
Series A 5.00% 11/1/36 | | | 2,750,000 | | | | 3,309,460 | |
Solaris Metropolitan District No. 3 | | | | | | | | |
Series A 5.00% 12/1/46 | | | 500,000 | | | | 512,445 | |
Southlands Metropolitan District No. 1 | | | | | | | | |
Series A-1 5.00% 12/1/37 | | | 300,000 | | | | 320,472 | |
Series A-1 5.00% 12/1/47 | | | 700,000 | | | | 735,973 | |
Sterling Ranch Community Authority Board | | | | | | | | |
Series A 5.75% 12/1/45 | | | 975,000 | | | | 1,007,204 | |
Tallyn’s Reach Metropolitan District No. 3 | | | | | | | | |
5.125% 11/1/38 | | | 740,000 | | | | 754,445 | |
Thornton Development Authority | | | | | | | | |
Series B 5.00% 12/1/35 | | | 485,000 | | | | 570,244 | |
Series B 5.00% 12/1/36 | | | 810,000 | | | | 951,620 | |
Virgin Islands Public Finance Authority | | | | | | | | |
5.00% 10/1/29 (AGM) | | | 1,000,000 | | | | 1,019,160 | |
| | | | | | | | |
| | | | 42,017,553 | |
| | | | | | | | |
State General Obligation Bonds – 1.32% | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 5.00% 7/1/41 ‡ | | | 680,000 | | | | 425,850 | |
Series A 5.375% 7/1/33 ‡ | | | 675,000 | | | | 476,719 | |
Series A 8.00% 7/1/35 ‡ | | | 1,215,000 | | | | 742,669 | |
Series B 5.75% 7/1/38 ‡ | | | 960,000 | | | | 680,400 | |
Series C 6.00% 7/1/39 ‡ | | | 890,000 | | | | 626,337 | |
| | | | | | | | |
| | | | 2,951,975 | |
| | | | | | | | |
Transportation Revenue Bonds – 11.03% | | | | | | | | |
Colorado High Performance Transportation Enterprise Revenue | | | | | | | | |
(C-470 Express Lanes) 5.00% 12/31/56 | | | 2,000,000 | | | | 2,154,380 | |
(Senior U.S. 36 & I-25 Managed Lanes) 5.75% 1/1/44 (AMT) | | | 2,140,000 | | | | 2,293,310 | |
72
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Transportation Revenue Bonds (continued) | | | | | | | | |
Denver City & County Airport System Revenue | | | | | | | | |
Series A 4.00% 12/1/48 (AMT) | | | 400,000 | | | $ | 439,904 | |
Series A 5.00% 11/15/30 (AMT) | | | 1,750,000 | | | | 2,156,980 | |
Series A 5.00% 12/1/48 (AMT) | | | 2,000,000 | | | | 2,387,700 | |
Series B 5.00% 11/15/30 | | | 1,000,000 | | | | 1,081,920 | |
Series B 5.00% 11/15/32 | | | 1,000,000 | | | | 1,077,600 | |
Series B 5.00% 11/15/37 | | | 8,000,000 | | | | 8,572,080 | |
E-470 Public Highway Authority | | | | | | | | |
Series A 5.00% 9/1/34 | | | 900,000 | | | | 1,196,478 | |
Series A 5.00% 9/1/35 | | | 400,000 | | | | 529,216 | |
Series A 5.00% 9/1/36 | | | 1,300,000 | | | | 1,711,931 | |
Series C 5.375% 9/1/26 | | | 1,000,000 | | | | 1,000,000 | |
| | | | | | | | |
| | | | 24,601,499 | |
| | | | | | | | |
Water & Sewer Revenue Bonds – 2.51% | | | | | | | | |
Arapahoe County Water & Wastewater Authority | | | | | | | | |
4.00% 12/1/37 | | | 1,000,000 | | | | 1,221,060 | |
4.00% 12/1/38 | | | 1,845,000 | | | | 2,236,804 | |
Dominion Water & Sanitation District | | | | | | | | |
6.00% 12/1/46 | | | 735,000 | | | | 767,568 | |
Douglas County Centennial Water & Sanitation District | | | | | | | | |
4.00% 12/1/38 | | | 500,000 | | | | 586,940 | |
Guam Government Waterworks Authority Water & Wastewater System Revenue | | | | | | | | |
5.00% 7/1/37 | | | 675,000 | | | | 789,082 | |
| | | | | | | | |
| | | | 5,601,454 | |
| | | | | | | | |
Total Municipal Bonds (cost $208,297,962) | | | | 219,905,214 | |
| | | | | | | | |
| | | Number of shares | | | | |
Short-Term Investments – 0.52% | |
Money Market Mutual Fund – 0.29% | | | | | | | | |
Dreyfus AMT-Free Tax Exempt Cash Management Fund - Institutional Shares (seven-day effective yield 0.00%) | | | 653,583 | | | | 653,583 | |
| | | | | | | | |
| | | | 653,583 | |
| | | | | | | | |
73
| | |
| Schedules of investments |
| Delaware Tax-Free Colorado Fund | | |
| | | | | | | | |
| | | Principal amount | | | Value (US $) | |
Variable Rate Demand Note – 0.23%¤ | | | | | | | | |
Denver City & County | | | | | | | | |
Series A 0.02% 12/1/31 (SPA - JPMorgan Chase Bank N.A.) | | | 500,000 | | | $ | 500,000 | |
| | | | | | | | |
| | | | 500,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $1,153,583) | | | | 1,153,583 | |
| | | | | | | | |
| | |
Total Value of Securities–99.12%
(cost $209,451,545) | | | | | | $ | 221,058,797 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $11,234,763, which represents 5.04% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
| ‡ | Non-income producing security. Security is currently in default. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 8 in “Notes to financial statements.” |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
GNMA – Government National Mortgage Association
N.A. – National Association
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
74
| | |
| Schedules of investments |
| Delaware Tax-Free Idaho Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
Municipal Bonds – 97.15% | |
Corporate Revenue Bonds – 3.11% | | | | | | | | |
Nez Perce County Pollution Control Revenue | | | | | | | | |
(Potlatch Project) 2.75% 10/1/24 | | | 1,250,000 | | | $ | 1,272,263 | |
Power County Industrial Development Revenue | | | | | | | | |
(FMC Project) 6.45% 8/1/32 (AMT) | | | 2,000,000 | | | | 2,009,840 | |
| | | | | | | | |
| | | | 3,282,103 | |
| | | | | | | | |
Education Revenue Bonds – 14.92% | | | | | | | | |
Boise State University Revenue | | | | | | | | |
(General Project) | | | | | | | | |
Series A 5.00% 4/1/47 | | | 500,000 | | | | 591,875 | |
Series A 5.00% 4/1/48 | | | 1,000,000 | | | | 1,207,240 | |
Idaho Housing & Finance Association | | | | | | | | |
(Compass Public Charter School Project) | | | | | | | | |
Series A 144A 5.00% 7/1/54 # | | | 1,000,000 | | | | 1,039,990 | |
Series A 144A 6.00% 7/1/39 # | | | 370,000 | | | | 422,244 | |
Series A 144A 6.00% 7/1/49 # | | | 595,000 | | | | 669,607 | |
Series A 144A 6.00% 7/1/54 # | | | 570,000 | | | | 639,443 | |
(Idaho Arts Charter School Project) | | | | | | | | |
Series A 5.00% 12/1/38 | | | 1,000,000 | | | | 1,103,020 | |
Series A 144A 5.00% 12/1/46# | | | 1,000,000 | | | | 1,074,180 | |
(North Star Charter School Project) | | | | | | | | |
Capital Appreciation Subordinate Series B 144A 4.88% 7/1/49 #, ^ | | | 2,888,155 | | | | 484,372 | |
Series A 6.75% 7/1/48 | | | 529,151 | | | | 572,420 | |
(Victory Charter School Project) Series B 5.00% 7/1/39 | | | 1,000,000 | | | | 1,096,640 | |
(Xavier Charter School Project) Series A 5.00% 6/1/50 | | | 1,275,000 | | | | 1,381,246 | |
Idaho State University Revenue | | | | | | | | |
3.00% 4/1/49 | | | 1,700,000 | | | | 1,741,140 | |
5.00% 4/1/40 | | | 190,000 | | | | 229,603 | |
5.00% 4/1/43 | | | 250,000 | | | | 299,760 | |
5.00% 4/1/44 | | | 250,000 | | | | 299,105 | |
University of Idaho | | | | | | | | |
Series 2011 5.25% 4/1/41 • | | | 1,670,000 | | | | 1,711,316 | |
Series A 5.00% 4/1/41 | | | 1,000,000 | | | | 1,183,110 | |
| | | | | | | | |
| | | | 15,746,311 | |
| | | | | | | | |
Electric Revenue Bonds – 4.12% | | | | | | | | |
Boise-Kuna Irrigation District Revenue | | | | | | | | |
(Idaho Arrowrock Hydroelectric Project) 5.00% 6/1/34 | | | 2,000,000 | | | | 2,339,640 | |
75
| | |
| Schedules of investments |
| Delaware Tax-Free Idaho Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Electric Revenue Bonds (continued) | | | | | | | | |
Guam Power Authority Revenue | | | | | | | | |
Series A 5.00% 10/1/40 | | | 1,000,000 | | | $ | 1,151,020 | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 75,000 | | | | 51,750 | |
Series AAA 5.25% 7/1/25 ‡ | | | 45,000 | | | | 31,106 | |
Series CCC 5.25% 7/1/27 ‡ | | | 345,000 | | | | 238,481 | |
Series WW 5.00% 7/1/28 ‡ | | | 320,000 | | | | 220,800 | |
Series XX 4.75% 7/1/26 ‡ | | | 50,000 | | | | 34,250 | |
Series XX 5.25% 7/1/40 ‡ | | | 135,000 | | | | 93,319 | |
Series XX 5.75% 7/1/36 ‡ | | | 175,000 | | | | 122,063 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 40,000 | | | | 27,400 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 60,000 | | | | 41,475 | |
| | | | | | | | |
| | | | 4,351,304 | |
| | | | | | | | |
Healthcare Revenue Bonds – 9.33% | | | | | | | | |
Idaho Health Facilities Authority Revenue | | | | | | | | |
(Madison Memorial Hospital Project) 5.00% 9/1/37 | | | 1,350,000 | | | | 1,513,093 | |
(St. Luke’s Health System Project) | | | | | | | | |
Series A 5.00% 3/1/27 | | | 1,000,000 | | | | 1,232,080 | |
Series A 5.00% 3/1/47 | | | 1,500,000 | | | | 1,555,350 | |
(Trinity Health Credit Group) | | | | | | | | |
Series A 5.00% 12/1/47 | | | 390,000 | | | | 467,618 | |
Series ID 4.00% 12/1/43 | | | 1,000,000 | | | | 1,136,050 | |
Series ID 5.00% 12/1/46 | | | 750,000 | | | | 890,213 | |
(Valley Vista Care Corporation) | | | | | | | | |
Series A 5.25% 11/15/37 | | | 1,005,000 | | | | 968,539 | |
Series A 5.25% 11/15/47 | | | 1,130,000 | | | | 1,033,848 | |
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | | | | | | | | |
(Hospital Auxilio Mutuo Obligated Group Project) Series A 6.00% 7/1/33 | | | 1,020,000 | | | | 1,046,816 | |
| | | | | | | | |
| | | | 9,843,607 | |
| | | | | | | | |
Housing Revenue Bonds – 4.36% | | | | | | | | |
Idaho Housing & Finance Association | | | | | | | | |
Series A 4.50% 1/21/49 (GNMA) | | | 820,065 | | | | 876,764 | |
Idaho Housing & Finance Association Single Family Mortgage Revenue | | | | | | | | |
Series A 3.05% 7/1/39 (GNMA) | | | 1,665,000 | | | | 1,772,060 | |
Series A 3.25% 1/1/43 (GNMA) | | | 820,000 | | | | 870,446 | |
76
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Housing Revenue Bonds (continued) | | | | | | | | |
Idaho Housing & Finance Association Single Family Mortgage Revenue | | | | | | | | |
Series A Class II 4.375% 7/1/32 | | | 250,000 | | | $ | 250,343 | |
Series C 3.00% 1/1/43 (FHA) | | | 800,000 | | | | 837,296 | |
| | | | | | | | |
| | | | 4,606,909 | |
| | | | | | | | |
Lease Revenue Bonds – 10.67% | | | | | | | | |
Boise Urban Renewal Agency | | | | | | | | |
5.00% 12/15/31 | | | 750,000 | | | | 870,750 | |
5.00% 12/15/32 | | | 750,000 | | | | 866,468 | |
Idaho Fish & Wildlife Foundation | | | | | | | | |
(Idaho Department of Fish & Game Headquarters Office Project) | | | | | | | | |
4.00% 12/1/36 | | | 650,000 | | | | 783,907 | |
4.00% 12/1/39 | | | 1,545,000 | | | | 1,845,502 | |
4.00% 12/1/42 | | | 1,300,000 | | | | 1,533,272 | |
4.00% 12/1/44 | | | 250,000 | | | | 292,355 | |
(Idaho Department of Fish & Game Nampa Regional Office Project) 5.00% 12/1/41 | | | 200,000 | | | | 247,796 | |
Idaho Housing & Finance Association Economic Development Facilities Revenue | | | | | | | | |
(TDF Facilities Project) | | | | | | | | |
Series A 6.50% 2/1/26 | | | 1,350,000 | | | | 1,373,638 | |
Series A 7.00% 2/1/36 | | | 1,500,000 | | | | 1,523,730 | |
Idaho State Building Authority Revenue | | | | | | | | |
(Capitol Mall Parking Project) | | | | | | | | |
Series A 4.50% 9/1/26 | | | 485,000 | | | | 541,958 | |
Series A 4.50% 9/1/27 | | | 505,000 | | | | 563,080 | |
(Department of Health & Welfare Project) Series B 4.00% 9/1/48 | | | 750,000 | | | | 823,245 | |
| | | | | | | | |
| | | | 11,265,701 | |
| | | | | | | | |
Local General Obligation Bonds – 22.19% | | | | | | | | |
Ada & Boise Counties Independent School District Boise City | | | | | | | | |
5.00% 8/1/33 | | | 1,010,000 | | | | 1,247,896 | |
5.00% 8/1/34 | | | 1,500,000 | | | | 1,849,230 | |
5.00% 8/1/35 | | | 1,160,000 | | | | 1,425,524 | |
5.00% 8/1/36 | | | 500,000 | | | | 612,480 | |
Ada & Canyon Counties Joint School District No. 3 Kuna | | | | | | | | |
(Sales Tax & Credit Enhancement Guaranty) | | | | | | | | |
Series B 5.00% 9/15/33 | | | 1,000,000 | | | | 1,242,900 | |
77
| | |
| Schedules of investments |
| Delaware Tax-Free Idaho Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Local General Obligation Bonds (continued) | | | | | | | | |
Ada & Canyon Counties Joint School District No. 3 Kuna | | | | | | | | |
(Sales Tax & Credit Enhancement Guaranty) | | | | | | | | |
Series B 5.00% 9/15/35 | | | 1,100,000 | | | $ | 1,359,721 | |
Canyon County School District No. 131 Nampa | | | | | | | | |
(School Board Guaranteed) Series B 5.00% 8/15/23 | | | 1,295,000 | | | | 1,462,223 | |
Canyon County School District No. 132 Caldwell | | | | | | | | |
Series A 5.00% 9/15/22 (AGM) | | | 1,725,000 | | | | 1,731,607 | |
Series A 5.00% 9/15/23 (AGM) | | | 1,810,000 | | | | 1,816,878 | |
Canyon County School District No. 139 Vallivue | | | | | | | | |
(School Board Guaranteed) | | | | | | | | |
5.00% 9/15/33 | | | 1,000,000 | | | | 1,131,690 | |
Series B 5.00% 9/15/24 | | | 1,480,000 | | | | 1,621,310 | |
Idaho Bond Bank Authority Revenue | | | | | | | | |
Series A 4.00% 9/15/33 | | | 530,000 | | | | 614,567 | |
Series A 4.00% 9/15/37 | | | 1,000,000 | | | | 1,146,400 | |
Series C 5.00% 9/15/42 | | | 500,000 | | | | 614,175 | |
Madison County School District No. 321 Rexburg | | | | | | | | |
(Sales Tax & Credit Enhancement Guaranty) | | | | | | | | |
Series B 5.00% 8/15/25 | | | 1,080,000 | | | | 1,325,203 | |
Series B 5.00% 8/15/26 | | | 500,000 | | | | 631,845 | |
Nez Perce County Independent School District No. 1 | | | | | | | | |
(Sales Tax & Credit Enhancement Guaranty) | | | | | | | | |
Series B 5.00% 9/15/36 | | | 1,000,000 | | | | 1,230,020 | |
Series B 5.00% 9/15/37 | | | 1,000,000 | | | | 1,225,530 | |
Twin Falls County School District No. 411 | | | | | | | | |
(School Board Guaranteed) Series A 4.75% 9/15/37 | | | 1,000,000 | | | | 1,128,930 | |
| | | | | | | | |
| | | | 23,418,129 | |
| | | | | | | | |
Pre-Refunded Bonds – 6.38% | | | | | | | | |
Boise State University Revenue | | | | | | | | |
(General Project) | | | | | | | | |
Series A 4.00% 4/1/37-22 § | | | 1,250,000 | | | | 1,322,262 | |
Series A 5.00% 4/1/42-22 § | | | 1,350,000 | | | | 1,449,306 | |
Idaho Health Facilities Authority Revenue | | | | | | | | |
(Trinity Health Credit Group) | | | | | | | | |
Series D 4.50% 12/1/37-20 § | | | 1,385,000 | | | | 1,399,778 | |
Series ID 5.00% 12/1/32-22 § | | | 1,000,000 | | | | 1,081,290 | |
Idaho State Building Authority Revenue | | | | | | | | |
Series B 5.00% 9/1/40-22 § | | | 250,000 | | | | 273,960 | |
78
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Pre-Refunded Bonds (continued) | | | | | | | | |
Nampa Development Corporation Revenue | | | | | | | | |
(Library Square Project) 144A 5.00% 9/1/31-24 #, § | | | 1,000,000 | | | $ | 1,206,390 | |
| | | | | | | | |
| | | | 6,732,986 | |
| | | | | | | | |
Special Tax Revenue Bonds – 16.31% | | | | | | | | |
GDB Debt Recovery Authority of Puerto Rico | | | | | | | | |
7.50% 8/20/40 | | | 631,620 | | | | 433,449 | |
Guam Government Business Privilege Tax Revenue | | | | | | | | |
Series A 5.125% 1/1/42 | | | 545,000 | | | | 559,268 | |
Series A 5.25% 1/1/36 | | | 705,000 | | | | 727,038 | |
Series B-1 5.00% 1/1/42 | | | 1,425,000 | | | | 1,459,642 | |
Idaho Water Resource Board Loan Program Revenue | | | | | | | | |
(Ground Water Rights Mitigation) Series A 5.00% 9/1/32 | | | 3,565,000 | | | | 3,872,802 | |
Ketchum Urban Renewal Agency Tax Increment Revenue | | | | | | | | |
5.50% 10/15/34 | | | 1,500,000 | | | | 1,501,725 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.55% 7/1/40 | | | 875,000 | | | | 931,858 | |
Series A-1 4.75% 7/1/53 | | | 3,485,000 | | | | 3,662,874 | |
Series A-1 5.00% 7/1/58 | | | 1,531,000 | | | | 1,634,649 | |
Series A-1 5.273% 7/1/46 ^ | | | 1,240,000 | | | | 355,719 | |
Series A-2 4.329% 7/1/40 | | | 730,000 | | | | 766,507 | |
Series A-2 4.784% 7/1/58 | | | 1,000,000 | | | | 1,053,310 | |
Virgin Islands Public Finance Authority Revenue | | | | | | | | |
(Senior Lien-Matching Fund Loan Note) 5.00% 10/1/29 (AGM) | | | 250,000 | | | | 254,790 | |
| | | | | | | | |
| | | | 17,213,631 | |
| | | | | | | | |
State General Obligation Bonds – 1.77% | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 8.00% 7/1/35 ‡ | | | 610,000 | | | | 372,863 | |
Series B 5.00% 7/1/35 ‡ | | | 145,000 | | | | 103,131 | |
Series B 5.75% 7/1/38 ‡ | | | 460,000 | | | | 326,025 | |
Series C 6.00% 7/1/39 ‡ | | | 465,000 | | | | 327,244 | |
(Public Improvement) | | | | | | | | |
Series A 5.00% 7/1/24 ‡ | | | 210,000 | | | | 149,363 | |
Series A 5.00% 7/1/41 ‡ | | | 325,000 | | | | 203,531 | |
79
| | |
| Schedules of investments |
| Delaware Tax-Free Idaho Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | |
State General Obligation Bonds (continued) | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
(Public Improvement) | | | | | | | | |
Series A 5.25% 7/1/34 ‡ | | | 175,000 | | | $ | 124,906 | |
Series A 5.375% 7/1/33 ‡ | | | 365,000 | | | | 257,781 | |
| | | | | | | | |
| | | | 1,864,844 | |
| | | | | | | | |
Transportation Revenue Bonds – 2.69% | | | | | | | | |
Boise City Airport Revenue | | | | | | | | |
(Air Terminal Facilities Project) 5.75% 9/1/20 (AGM) (AMT) | | | 500,000 | | | | 500,000 | |
(Parking Facilities Project) 4.00% 9/1/32 | | | 2,180,000 | | | | 2,235,023 | |
Idaho Housing & Finance Association | | | | | | | | |
(Federal Highway Trust Fund) Series A 5.00% 7/15/31 | | | 80,000 | | | | 100,488 | |
| | | | | | | | |
| | | | 2,835,511 | |
| | | | | | | | |
Water & Sewer Revenue Bonds – 1.30% | | | | | | | | |
Guam Government Waterworks Authority | | | | | | | | |
5.00% 7/1/40 | | | 370,000 | | | | 429,578 | |
5.00% 1/1/46 | | | 835,000 | | | | 944,368 | |
| | | | | | | | |
| | | | 1,373,946 | |
| | | | | | | | |
Total Municipal Bonds (cost $97,617,536) | | | | | | | 102,534,982 | |
| | | | | | | | |
| | | Number of shares | | | | |
Short-Term Investments – 1.84% | |
Money Market Mutual Fund – 1.44% | | | | | | | | |
Dreyfus AMT-Free Tax Exempt Cash Management Fund - Institutional Shares (seven-day effective yield 0.00%) | | | 1,516,489 | | | | 1,516,489 | |
| | | | | | | | |
| | | | 1,516,489 | |
| | | | | | | | |
80
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Variable Rate Demand Notes – 0.40%¤ | | | | | | | | |
Idaho Health Facilities Authority Revenue | | | | | | | | |
(St. Luke’s Health System Project) Series C 0.02% 3/1/48 (LOC – US Bank N.A.) | | | 425,000 | | | $ | 425,000 | |
| | | | | | | | |
| | | | 425,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $1,941,489) | | | | 1,941,489 | |
| | | | | | | | |
Total Value of Securities–98.99%
(cost $99,559,025) | | | | | | $ | 104,476,471 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $5,536,226, which represents 5.25% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| • | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
| ‡ | Non-income producing security. Security is currently in default. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 8 in “Notes to financial statements.” |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
FHA – Federal Housing Administration
GNMA – Government National Mortgage Association
ICE – Intercontinental Exchange, Inc.
81
| | |
| Schedules of investments |
| Delaware Tax-Free Idaho Fund | | |
Summary of abbreviations: (continued)
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LOC – Letter of Credit
N.A. – National Association
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
82
| | |
| Schedules of investments |
| Delaware Tax-Free New York Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds – 98.59% | | | | | | | | |
|
| |
Corporate Revenue Bonds – 6.11% | | | | | | | | |
Erie County Tobacco Asset Securitization | | | | | | | | |
(Asset-Backed) Series A 1.53% 6/1/60 ^ | | | 25,400,000 | | | $ | 1,154,430 | |
New York Liberty Development | | | | | | | | |
(Goldman Sachs Headquarters Issue) 5.25% 10/1/35 | | | 1,000,000 | | | | 1,395,610 | |
New York Transportation Development Corporation Special Facilities Revenue | | | | | | | | |
(Delta Air Lines - LaGuardia Airport Terminals C&D Redevelopment Project) 5.00% 1/1/36 (AMT) | | | 1,000,000 | | | | 1,080,080 | |
Suffolk Tobacco Asset Securitization | | | | | | | | |
Series B 5.25% 6/1/37 | | | 700,000 | | | | 726,705 | |
TSASC Revenue | | | | | | | | |
(Senior) Fiscal 2017 Series A 5.00% 6/1/41 | | | 900,000 | | | | 1,015,614 | |
| | | | | | | | |
| | | | | | | 5,372,439 | |
| | | | | | | | |
Education Revenue Bonds – 19.36% | | | | | | | | |
Albany Industrial Development Agency Civic Facilities Revenue | | | | | | | | |
(Brighter Choice Charter School) Series A 5.00% 4/1/37 | | | 250,000 | | | | 250,108 | |
Buffalo & Erie County Industrial Land Development | | | | | | | | |
(Tapestry Charter School Project) Series A 5.00% 8/1/52 | | | 500,000 | | | | 519,815 | |
Build NYC Resource | | | | | | | | |
(Bronx Charter School for Excellence Project) | | | | | | | | |
Series A 5.00% 4/1/33 | | | 500,000 | | | | 526,770 | |
Series A 5.50% 4/1/43 | | | 500,000 | | | | 527,270 | |
(Inwood Academy for Leadership Charter School Project) | | | | | | | | |
Series A 144A 5.50% 5/1/48 # | | | 500,000 | | | | 538,115 | |
(Manhattan College Project) 5.00% 8/1/47 | | | 500,000 | | | | 569,750 | |
(Metropolitan College of New York Project) 5.50% 11/1/44 | | | 600,000 | | | | 632,052 | |
(Metropolitan Lighthouse Charter School Project) | | | | | | | | |
Series A 144A 5.00% 6/1/52 # | | | 250,000 | | | | 263,130 | |
(New Dawn Charter Schools Project) 144A 5.75% 2/1/49 # | | | 500,000 | | | | 523,115 | |
(The Packer Collegiate Institute Project) 5.00% 6/1/40 | | | 750,000 | | | | 831,525 | |
83
| | |
| Schedules of investments |
| Delaware Tax-Free New York Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Education Revenue Bonds (continued) | | | | | | | | |
Dutchess County Local Development | | | | | | | | |
(The Culinary Institute of America Project) Series A-1 5.00% 7/1/46 | | | 300,000 | | | $ | 321,639 | |
Hempstead Town Local Development | | | | | | | | |
(Hofstra University Project) 5.00% 7/1/42 | | | 500,000 | | | | 584,395 | |
Monroe County Industrial Development Revenue | | | | | | | | |
(St. John Fisher College Project) Series A 5.50% 6/1/39 | | | 300,000 | | | | 329,421 | |
(University of Rochester Project) Series C 4.00% 7/1/43 | | | 500,000 | | | | 562,010 | |
New York City Trust for Cultural Resources | | | | | | | | |
(Alvin Ailey Dance Foundation) Series A 4.00% 7/1/46 | | | 1,000,000 | | | | 1,062,680 | |
(Whitney Museum of American Art) 5.00% 7/1/31 | | | 500,000 | | | | 506,005 | |
New York State Dormitory Authority | | | | | | | | |
(Barnard College) Series A 5.00% 7/1/35 | | | 400,000 | | | | 458,612 | |
(Fordham University) 5.00% 7/1/44 | | | 650,000 | | | | 723,444 | |
(Marymount Manhattan College) 5.00% 7/1/24 | | | 285,000 | | | | 285,618 | |
(New York University) 5.50% 7/1/40 (AMBAC) | | | 740,000 | | | | 1,078,987 | |
(Pratt Institute) Series A 5.00% 7/1/34 | | | 500,000 | | | | 556,160 | |
(Touro College & University) Series A 5.50% 1/1/44 | | | 1,000,000 | | | | 1,058,740 | |
(University of Rochester Project) Unrefunded Series A 5.125% 7/1/39 | | | 20,000 | | | | 20,019 | |
Onondaga Civic Development Revenue | | | | | | | | |
(Le Moyne College Project) | | | | | | | | |
Series B 4.00% 7/1/39 | | | 325,000 | | | | 343,934 | |
Series B 4.00% 7/1/40 | | | 300,000 | | | | 316,542 | |
St. Lawrence County Industrial Development Agency Civic Development Revenue | | | | | | | | |
(St. Lawrence University Project) Series A 4.00% 7/1/43 | | | 1,000,000 | | | | 1,068,830 | |
Tompkins County Development | | | | | | | | |
(Ithaca College Project) | | | | | | | | |
5.00% 7/1/34 | | | 750,000 | | | | 855,225 | |
5.00% 7/1/41 | | | 500,000 | | | | 592,075 | |
84
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Education Revenue Bonds (continued) | | | | | | | | |
Troy Industrial Development Authority | | | | | | | | |
(Rensselaer Polytechnic Institute Project) Series E 5.20% 4/1/37 | | | 500,000 | | | $ | 513,665 | |
Yonkers Economic Development Educational Revenue | | | | | | | | |
(Charter School of Educational Excellence Project) | | | | | | | | |
Series A 6.25% 10/15/40 | | | 600,000 | | | | 602,262 | |
| | | | | | | | |
| | | | | | | 17,021,913 | |
| | | | | | | | |
Electric Revenue Bonds – 6.69% | | | | | | | | |
Build NYC Resource | | | | | | | | |
(Brooklyn Navy Yard Cogeneration Partners, L.P. Project) 144A 5.25% 12/31/33 (AMT)# | | | 500,000 | | | | 530,775 | |
Long Island Power Authority Electric System Revenue | | | | | | | | |
5.00% 9/1/37 | | | 450,000 | | | | 565,272 | |
5.00% 9/1/47 | | | 500,000 | | | | 603,305 | |
Series A 5.00% 9/1/44 | | | 750,000 | | | | 860,445 | |
New York State Power Authority Revenue | | | | | | | | |
Series A 4.00% 11/15/50 | | | 1,000,000 | | | | 1,182,110 | |
Series A 5.00% 11/15/38 | | | 500,000 | | | | 527,300 | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 65,000 | | | | 44,850 | |
Series AAA 5.25% 7/1/25 ‡ | | | 35,000 | | | | 24,194 | |
Series WW 5.00% 7/1/28 ‡ | | | 270,000 | | | | 186,300 | |
Series XX 4.75% 7/1/26 ‡ | | | 40,000 | | | | 27,400 | |
Series XX 5.25% 7/1/40 ‡ | | | 390,000 | | | | 269,587 | |
Series XX 5.75% 7/1/36 ‡ | | | 140,000 | | | | 97,650 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 30,000 | | | | 20,550 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 50,000 | | | | 34,563 | |
Utility Debt Securitization Authority | | | | | | | | |
(Restructuring Bonds) 5.00% 12/15/37 | | | 750,000 | | | | 904,462 | |
| | | | | | | | |
| | | | | | | 5,878,763 | |
| | | | | | | | |
Healthcare Revenue Bonds – 13.77% | | | | | | | | |
Buffalo & Erie County Industrial Land Development | | | | | | | | |
(Catholic Health System Project) 5.25% 7/1/35 | | | 250,000 | | | | 285,405 | |
Build NYC Resource | | | | | | | | |
(The Children’s Aid Society Project) 4.00% 7/1/49 | | | 1,000,000 | | | | 1,121,760 | |
85
| | |
| Schedules of investments |
| Delaware Tax-Free New York Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Dutchess County Local Development | | | | | | | | |
(Nuvance Health) Series B 4.00% 7/1/49 | | | 1,000,000 | | | $ | 1,088,590 | |
Guilderland Industrial Development Agency | | | | | | | | |
(Albany Place Development Project) Series A 144A 5.875% 1/1/52 #, ‡ | | | 500,000 | | | | 375,000 | |
Monroe County Industrial Development | | | | | | | | |
(The Rochester General Hospital Project) | | | | | | | | |
5.00% 12/1/36 | | | 405,000 | | | | 471,744 | |
5.00% 12/1/46 | | | 540,000 | | | | 621,265 | |
(The Unity Hospital of Rochester Project) 5.50% 8/15/40 (FHA) | | | 585,000 | | | | 594,945 | |
Nassau County Local Economic Assistance | | | | | | | | |
(Catholic Health Services of Long Island Obligated Group Project) 5.00% 7/1/33 | | | 725,000 | | | | 809,897 | |
New York City Trust for Cultural Resources | | | | | | | | |
(Carnegie Hall) 5.00% 12/1/39 | | | 250,000 | | | | 302,545 | |
New York State Dormitory Authority | | | | | | | | |
(Montefiore Obligated Group) | | | | | | | | |
Series A 4.00% 8/1/38 | | | 1,000,000 | | | | 1,090,900 | |
Series A 4.00% 9/1/50 | | | 1,000,000 | | | | 1,081,230 | |
(NYU Langone Hospitals Obligated Group) Series A 4.00% 7/1/53 | | | 500,000 | | | | 562,275 | |
New York State Dormitory Authority Revenue Non-State Supported Debt | | | | | | | | |
(New York University Hospitals Center) Series A 4.00% 7/1/40 | | | 465,000 | | | | 511,170 | |
(Orange Regional Medical Center Obligated Group) | | | | | | | | |
144A 5.00% 12/1/34 # | | | 500,000 | | | | 581,765 | |
144A 5.00% 12/1/45 # | | | 700,000 | | | | 769,468 | |
Orange County Funding Assisted Living Residence Revenue | | | | | | | | |
(The Hamlet at Wallkill Assisted Living Project) 6.50% 1/1/46 | | | 400,000 | | | | 400,892 | |
Southold Local Development Revenue | | | | | | | | |
(Peconic Landing at Southold Project) 5.00% 12/1/45 | | | 750,000 | | | | 783,157 | |
86
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Suffolk County Economic Development Revenue | | | | | | | | |
(Peconic Landing at Southhold Project) 6.00% 12/1/40 | | | 650,000 | | | $ | 659,016 | |
| | | | | | | | |
| | | | | | | 12,111,024 | |
| | | | | | | | |
Lease Revenue Bonds – 6.82% | | | | | | | | |
Hudson Yards Infrastructure | | | | | | | | |
Unrefunded Fiscal 2012 Series A 5.75% 2/15/47 | | | 385,000 | | | | 393,932 | |
MTA Hudson Rail Yards Trust Obligations | | | | | | | | |
(The Metropolitan Transportation Authority) Series A 5.00% 11/15/56 | | | 710,000 | | | | 789,286 | |
New York City Industrial Development Agency | | | | | | | | |
(Senior Trips) Series A 5.00% 7/1/28 (AMT) | | | 1,500,000 | | | | 1,578,300 | |
New York City Transitional Finance Authority Revenue | | | | | | | | |
(Building Aid) Fiscal 2020 Subordinate Series S-1B 4.00% 7/15/45 | | | 445,000 | | | | 506,624 | |
New York Liberty Development | | | | | | | | |
(4 World Trade Center Project) 5.00% 11/15/31 | | | 500,000 | | | | 524,030 | |
(Class 1 - 3 World Trade Center Project) 144A 5.00% 11/15/44 # | | | 1,500,000 | | | | 1,591,965 | |
(Class 2 - 3 World Trade Center Project) 144A 5.375% 11/15/40 # | | | 500,000 | | | | 528,285 | |
New York State Dormitory Authority | | | | | | | | |
(State Sales Tax) Series A 4.00% 3/15/48 | | | 80,000 | | | | 89,446 | |
| | | | | | | | |
| | | | | | | 6,001,868 | |
| | | | | | | | |
Local General Obligation Bond – 0.71% | | | | | | | | |
New York City | | | | | | | | |
Subordinate Series E-1 5.25% 3/1/35 | | | 500,000 | | | | 625,335 | |
| | | | | | | | |
| | | | | | | 625,335 | |
| | | | | | | | |
Pre-Refunded Bonds – 4.55% | | | | | | | | |
Buffalo & Erie County Industrial Land Development | | | | | | | | |
(Buffalo State College Foundation Housing Project) | | | | | | | | |
Series A 6.00% 10/1/31-21 § | | | 525,000 | | | | 542,687 | |
Dutchess County Local Development | | | | | | | | |
(Health Quest Systems Project) Series A 5.00% 7/1/44-24 § | | | 1,000,000 | | | | 1,178,030 | |
87
| | |
| Schedules of investments |
| Delaware Tax-Free New York Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Pre-Refunded Bonds (continued) | | | | | | | | |
Monroe County Industrial Development Revenue | | | | | | | | |
(Nazareth College of Rochester Project) | | | | | | | | |
5.25% 10/1/31-21 § | | | 500,000 | | | $ | 526,960 | |
5.50% 10/1/41-21 § | | | 500,000 | | | | 528,310 | |
Onondaga Civic Development Revenue | | | | | | | | |
(St. Joseph’s Hospital Health Center Project) | | | | | | | | |
4.50% 7/1/32-22 § | | | 380,000 | | | | 408,675 | |
5.00% 7/1/42-22 § | | | 750,000 | | | | 813,435 | |
| | | | | | | | |
| | | | | | | 3,998,097 | |
| | | | | | | | |
Resource Recovery Revenue Bond – 1.76% | | | | | | | | |
Niagara Area Development Revenue | | | | | | | | |
(Covanta Project) Series A 144A 4.75% 11/1/42 (AMT)# | | | 1,500,000 | | | | 1,551,270 | |
| | | | | | | | |
| | | | | | | 1,551,270 | |
| | | | | | | | |
Special Tax Revenue Bonds – 19.01% | | | | | | | | |
Build NYC Resource | | | | | | | | |
(YMCA of Greater New York Project) 5.00% 8/1/40 | | | 450,000 | | | | 497,538 | |
Glen Cove Local Economic Assistance | | | | | | | | |
(Garvies Point Public Improvement Project) Series A 5.00% 1/1/56 | | | 250,000 | | | | 258,055 | |
Guam Government Business Privilege Tax Revenue | | | | | | | | |
Series A 5.25% 1/1/36 | | | 240,000 | | | | 247,502 | |
New York City Transitional Finance Authority Revenue | | | | | | | | |
(Building Aid) | | | | | | | | |
Fiscal 2012 Subordinate Series S-1A 5.25% 7/15/37 | | | 1,000,000 | | | | 1,038,920 | |
Fiscal 2015 Subordinate Series S-1 5.00% 7/15/43 | | | 1,000,000 | | | | 1,153,720 | |
(Future Tax Secured) | | | | | | | | |
Fiscal 2014 Subordinate Series A-1 5.00% 11/1/42 | | | 750,000 | | | | 840,967 | |
Fiscal 2014 Subordinate Series B-1 5.00% 11/1/40 | | | 750,000 | | | | 855,495 | |
Fiscal 2015 Subordinate Series E-1 5.00% 2/1/41 | | | 1,000,000 | | | | 1,159,270 | |
Fiscal 2016 Subordinate Series C-1 4.00% 11/1/42 | | | 500,000 | | | | 573,845 | |
Fiscal 2017 Subordinate Series A-1 4.00% 5/1/42 | | | 500,000 | | | | 552,205 | |
Fiscal 2017 Subordinate Series E-1 5.00% 2/1/43 | | | 1,000,000 | | | | 1,189,530 | |
Unrefunded Fiscal 2011 Subordinate Series D-1 5.25% 2/1/29 | | | 195,000 | | | | 198,916 | |
88
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Special Tax Revenue Bonds (continued) | | | | | | | | |
New York Convention Center Development Revenue | | | | | | | | |
(Hotel Unit Fee Secured) 5.00% 11/15/35 | | | 1,000,000 | | | $ | 1,108,400 | |
New York State Dormitory Authority Revenue | | | | | | | | |
(General Purpose) Series C 5.00% 3/15/34 | | | 500,000 | | | | 511,865 | |
New York State Urban Development Revenue | | | | | | | | |
(General Purpose) Series A 4.00% 3/15/36 | | | 500,000 | | | | 560,295 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.55% 7/1/40 | | | 425,000 | | | | 452,617 | |
Series A-1 4.75% 7/1/53 | | | 1,475,000 | | | | 1,550,284 | |
Series A-1 5.00% 7/1/58 | | | 2,745,000 | | | | 2,930,836 | |
Series A-2 4.536% 7/1/53 | | | 1,000,000 | | | | 1,036,770 | |
| | | | | | | | |
| | | | 16,717,030 | |
| | | | | | | | |
State General Obligation Bonds – 1.29% | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 8.00% 7/1/35 ‡ | | | 465,000 | | | | 284,232 | |
(Public Improvement) | | | | | | | | |
Series A 5.00% 7/1/41 ‡ | | | 265,000 | | | | 165,956 | |
Series A 5.375% 7/1/33 ‡ | | | 260,000 | | | | 183,625 | |
Series B 5.75% 7/1/38 ‡ | | | 35,000 | | | | 24,806 | |
Series C 6.00% 7/1/39 ‡ | | | 680,000 | | | | 478,550 | |
| | | | | | | | |
| | | | 1,137,169 | |
| | | | | | | | |
Transportation Revenue Bonds – 11.89% | | | | | | | | |
Buffalo & Fort Erie Public Bridge Authority | | | | | | | | |
5.00% 1/1/47 | | | 435,000 | | | | 515,279 | |
Metropolitan Transportation Authority Revenue | | | | | | | | |
Series D 5.00% 11/15/32 | | | 500,000 | | | | 518,370 | |
(Green Bonds) | | | | | | | | |
Series B 4.00% 11/15/50 | | | 1,000,000 | | | | 1,004,840 | |
Series C-1 5.25% 11/15/55 | | | 750,000 | | | | 844,245 | |
New York State Thruway Authority General Revenue | | | | | | | | |
Series B 4.00% 1/1/50 | | | 1,000,000 | | | | 1,141,640 | |
Series L 5.00% 1/1/35 | | | 100,000 | | | | 122,976 | |
(Junior Indebtedness Obligation) Series A 5.25% 1/1/56 | | | 1,000,000 | | | | 1,150,400 | |
89
| | |
| Schedules of investments |
| Delaware Tax-Free New York Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Transportation Revenue Bonds (continued) | | | | | | | | |
Port Authority of New York & New Jersey | | | | | | | | |
(Consolidated Bonds - Two Hundred Seventeen Series) 4.00% 11/1/49 | | | 1,000,000 | | | $ | 1,147,520 | |
(Consolidated Bonds - Two Hundred Sixteen Series) 4.00% 9/1/49 | | | 1,000,000 | | | | 1,145,260 | |
(JFK International Air Terminal Project) | | | | | | | | |
Series 8 6.00% 12/1/42 | | | 700,000 | | | | 708,561 | |
Series 8 6.50% 12/1/28 | | | 550,000 | | | | 557,387 | |
Triborough Bridge & Tunnel Authority | | | | | | | | |
(MTA Bridges and Tunnels) | | | | | | | | |
Series A 5.00% 11/15/47 | | | 1,000,000 | | | | 1,191,310 | |
Series A 5.00% 11/15/49 | | | 325,000 | | | | 411,388 | |
| | | | | | | | |
| | | | | | | 10,459,176 | |
| | | | | | | | |
Water & Sewer Revenue Bonds – 6.63% | | | | | | | | |
New York City Municipal Water Finance Authority Water & Sewer System Revenue | | | | | | | | |
(Second General Resolution) | | | | | | | | |
Fiscal 2017 Series DD 5.00% 6/15/47 | | | 1,000,000 | | | | 1,218,610 | |
Fiscal 2019 Subordinate Series FF-1 4.00% 6/15/49 | | | 1,000,000 | | | | 1,154,600 | |
Fiscal 2020 Series AA 4.00% 6/15/40 | | | 1,000,000 | | | | 1,182,130 | |
Fiscal 2020 Series GG-1 4.00% 6/15/50 | | | 500,000 | | | | 584,675 | |
New York State Environmental Facilities Clean Water and Drinking Water Revenue | | | | | | | | |
(New York City Municipal Water Finance Authority Projects - Second Resolution) | | | | | | | | |
Fiscal 2011 Series B 5.00% 6/15/30 | | | 500,000 | | | | 517,870 | |
Series B 4.00% 6/15/49 | | | 1,000,000 | | | | 1,173,010 | |
| | | | | | | | |
| | | | 5,830,895 | |
| | | | | | | | |
Total Municipal Bonds (cost $83,036,135) | | | | 86,704,979 | |
| | | | | | | | |
| | | | | | | | |
|
| |
Short-Term Investments – 0.46% | | | | | | | | |
|
| |
Variable Rate Demand Notes – 0.46%¤ | | | | | | | | |
New York City Municipal Water Finance Authority Water & Sewer System Revenue | | | | | | | | |
(Second General Resolution) Fiscal 2011 Subordinate Series DD-2 0.02% 6/15/43 (SPA - JPMorgan Chase Bank N.A.) | | | 200,000 | | | | 200,000 | |
90
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Short-Term Investments (continued) | | | | | | | | |
|
| |
New York City Transitional Finance Authority Revenue | | | | | | | | |
Fiscal 2013 Subordinate Series A-4 0.02% 8/1/39 (SPA - JPMorgan Chase Bank N.A.) | | | 200,000 | | | $ | 200,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $400,000) | | | | | | | 400,000 | |
| | | | | | | | |
| | |
Total Value of Securities–99.05%
(cost $83,436,135) | | | | | | $ | 87,104,979 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $7,252,888, which represents 8.25% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
| ‡ | Non-income producing security. Security is currently in default. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 8 in “Notes to financial statements.” |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
FHA – Federal Housing Administration
L.P. – Limited Partnership
N.A. – National Association
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
91
| | |
| Schedules of investments |
| Delaware Tax-Free Pennsylvania Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | | Value (US $) | |
| |
Municipal Bonds – 98.50% | | | | | | | | |
| |
Corporate Revenue Bonds – 7.54% | | | | | | | | |
Allegheny County Industrial Development Authority Revenue | | | | | | | | |
(United States Steel Corporation Project) | | | | | | | | |
4.875% 11/1/24 | | | 3,900,000 | | | $ | 3,714,633 | |
5.125% 5/1/30 | | | 600,000 | | | | 541,824 | |
Pennsylvania Commonwealth Financing Authority Revenue | | | | | | | | |
(Tobacco Master Settlement Payment Revenue) 4.00% 6/1/39 (AGM) | | | 5,045,000 | | | | 5,727,841 | |
Pennsylvania Economic Development Financing Authority | | | | | | | | |
(National Gypsum) 5.50% 11/1/44 (AMT) | | | 4,000,000 | | | | 4,110,320 | |
Pennsylvania Economic Development Financing Authority Solid Waste Disposal Revenue | | | | | | | | |
(CarbonLite P, LLC Project) | | | | | | | | |
144A 5.25% 6/1/26 (AMT)# | | | 1,750,000 | | | | 1,745,555 | |
144A 5.75% 6/1/36 (AMT)# | | | 2,375,000 | | | | 2,338,543 | |
(Proctor & Gamble Paper Project) 5.375% 3/1/31 (AMT) | | | 11,000,000 | | | | 14,953,290 | |
| | | | | | | | |
| | | | 33,132,006 | |
| | | | | | | | |
Education Revenue Bonds – 12.15% | | | | | | | | |
Allegheny County Higher Education Building Authority Revenue | | | | | | | | |
(Carnegie Mellon University) Series A 5.00% 3/1/24 | | | 1,000,000 | | | | 1,071,630 | |
(Chatham University) Series A 5.00% 9/1/30 | | | 1,500,000 | | | | 1,539,075 | |
(Robert Morris University) | | | | | | | | |
5.00% 10/15/47 | | | 1,500,000 | | | | 1,560,000 | |
Series A 5.50% 10/15/30 | | | 1,275,000 | | | | 1,279,067 | |
Series A 5.75% 10/15/40 | | | 2,200,000 | | | | 2,206,160 | |
Bucks County Industrial Development Authority Revenue | | | | | | | | |
(George School Project) 5.00% 9/15/36 | | | 4,455,000 | | | | 4,661,400 | |
(School Lane Charter School Project) Series A 5.125% 3/15/46 | | | 2,500,000 | | | | 2,749,250 | |
Chester County Industrial Development Authority Revenue | | | | | | | | |
(Avon Grove Charter School Project) | | | | | | | | |
Series A 5.00% 12/15/47 | | | 1,160,000 | | | | 1,275,478 | |
Series A 5.00% 12/15/51 | | | 770,000 | | | | 844,551 | |
92
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Education Revenue Bonds (continued) | | | | | | | | |
Chester County Industrial Development Authority Revenue | | | | | | | | |
(Renaissance Academy Charter School Project) | | | | | | | | |
5.00% 10/1/34 | | | 1,000,000 | | | $ | 1,077,710 | |
5.00% 10/1/39 | | | 1,250,000 | | | | 1,336,875 | |
5.00% 10/1/44 | | | 1,000,000 | | | | 1,062,340 | |
Chester County Industrial Development Authority Student Housing Revenue | | | | | | | | |
(University Student Housing Project at West Chester University) | | | | | | | | |
Series A 5.00% 8/1/30 | | | 1,100,000 | | | | 1,139,479 | |
Series A 5.00% 8/1/45 | | | 1,250,000 | | | | 1,267,988 | |
Delaware County Authority Revenue | | | | | | | | |
(Cabrini University) 5.00% 7/1/47 | | | 2,000,000 | | | | 2,084,380 | |
East Hempfield Township Industrial Development Authority | | | | | | | | |
(Student Services - Student Housing Project at Millersville University) | | | | | | | | |
5.00% 7/1/39 | | | 875,000 | | | | 889,569 | |
5.00% 7/1/45 | | | 2,500,000 | | | | 2,524,125 | |
5.00% 7/1/46 | | | 1,425,000 | | | | 1,442,727 | |
5.00% 7/1/47 | | | 1,000,000 | | | | 1,014,920 | |
Montgomery County Higher Education and Health Authority | | | | | | | | |
(Arcadia University) 5.75% 4/1/40 | | | 2,000,000 | | | | 2,155,120 | |
Northeastern Pennsylvania Hospital and Education Authority Revenue | | | | | | | | |
(King’s College Project) 5.00% 5/1/44 | | | 1,000,000 | | | | 1,082,960 | |
Pennsylvania Higher Educational Facilities Authority College & University Revenue | | | | | | | | |
(Drexel University) 5.00% 5/1/41 | | | 1,000,000 | | | | 1,193,220 | |
Philadelphia Authority for Industrial Development Revenue | | | | | | | | |
(First Philadelphia Preparatory Charter School Project) | | | | | | | | |
Series A 7.25% 6/15/43 | | | 2,500,000 | | | | 2,796,600 | |
(Green Woods Charter School Project) | | | | | | | | |
Series A 5.50% 6/15/22 | | | 390,000 | | | | 401,665 | |
Series A 5.75% 6/15/42 | | | 2,500,000 | | | | 2,559,350 | |
93
| | |
| Schedules of investments |
| Delaware Tax-Free Pennsylvania Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Education Revenue Bonds (continued) | | | | | | | | |
Philadelphia Authority for Industrial Development Revenue | | | | | | | | |
(International Apartments of Temple University) | | | | | | | | |
Series A 5.375% 6/15/30 | | | 1,500,000 | | | $ | 1,502,490 | |
Series A 5.625% 6/15/42 | | | 3,000,000 | | | | 3,003,870 | |
(Philadelphia Performing Arts Charter School Project) 144A 6.75% 6/15/43 # | | | 2,550,000 | | | | 2,555,839 | |
(Tacony Academy Charter School Project) | | | | | | | | |
Series A-1 6.75% 6/15/33 | | | 1,020,000 | | | | 1,104,946 | |
Series A-1 7.00% 6/15/43 | | | 1,535,000 | | | | 1,654,730 | |
State Public School Building Authority | | | | | | | | |
(Montgomery County Community College) 5.00% 5/1/28 | | | 2,000,000 | | | | 2,335,740 | |
| | | | | | | | |
| | | | 53,373,254 | |
| | | | | | | | |
Electric Revenue Bonds – 0.86% | | | | | | | | |
Puerto Rico Electric Power Authority | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 400,000 | | | | 276,000 | |
Series AAA 5.25% 7/1/25 ‡ | | | 225,000 | | | | 155,531 | |
Series WW 5.00% 7/1/28 ‡ | | | 1,385,000 | | | | 955,650 | |
Series XX 4.75% 7/1/26 ‡ | | | 185,000 | | | | 126,725 | |
Series XX 5.25% 7/1/40 ‡ | | | 2,160,000 | | | | 1,493,100 | |
Series XX 5.75% 7/1/36 ‡ | | | 655,000 | | | | 456,863 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 145,000 | | | | 99,325 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 315,000 | | | | 217,744 | |
| | | | | | | | |
| | | | 3,780,938 | |
| | | | | | | | |
Healthcare Revenue Bonds – 38.22% | | | | | | | | |
Allegheny County Hospital Development Authority Revenue | | | | | | | | |
(Allegheny Health Network Obligated Group Issue) Series A 4.00% 4/1/44 | | | 1,350,000 | | | | 1,497,110 | |
(University of Pittsburgh Medical Center) | | | | | | | | |
Series A 4.00% 7/15/36 | | | 1,750,000 | | | | 2,016,735 | |
Series A 4.00% 7/15/37 | | | 1,500,000 | | | | 1,722,660 | |
Berks County Industrial Development Authority Revenue | | | | | | | | |
(The Highlands at Wyomissing) | | | | | | | | |
5.00% 5/15/38 | | | 415,000 | | | | 443,564 | |
5.00% 5/15/43 | | | 500,000 | | | | 530,320 | |
5.00% 5/15/48 | | | 1,000,000 | | | | 1,055,820 | |
Series A 5.00% 5/15/37 | | | 1,365,000 | | | | 1,466,065 | |
Series A 5.00% 5/15/42 | | | 500,000 | | | | 531,230 | |
94
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Berks County Industrial Development Authority Revenue | | | | | | | | |
(The Highlands at Wyomissing) | | | | | | | | |
Series A 5.00% 5/15/47 | | | 600,000 | | | $ | 633,852 | |
Series C 5.00% 5/15/42 | | | 1,000,000 | | | | 1,062,450 | |
Series C 5.00% 5/15/47 | | | 1,000,000 | | | | 1,056,420 | |
(Tower Health Project) | | | | | | | | |
4.00% 11/1/47 | | | 2,500,000 | | | | 2,487,025 | |
5.00% 11/1/47 | | | 4,500,000 | | | | 4,826,520 | |
5.00% 11/1/50 | | | 5,105,000 | | | | 5,458,725 | |
Bucks County Industrial Development Authority Revenue | | | | | | | | |
(Saint Luke’s University Health Network Project) | | | | | | | | |
4.00% 8/15/44 | | | 2,400,000 | | | | 2,625,696 | |
4.00% 8/15/50 | | | 1,400,000 | | | | 1,522,150 | |
Butler County Hospital Authority Revenue | | | | | | | | |
(Butler Health System Project) Series A 5.00% 7/1/39 | | | 1,625,000 | | | | 1,770,015 | |
Centre County Hospital Authority Revenue | | | | | | | | |
(Mount Nittany Medical Center Project) Series A 4.00% 11/15/47 | | | 1,400,000 | | | | 1,549,100 | |
Chester County Health and Education Facilities Authority | | | | | | | | |
(Main Line Health System) Series A 4.00% 9/1/50 | | | 3,500,000 | | | | 4,005,085 | |
Cumberland County Municipal Authority Revenue | | | | | | | | |
(Asbury Pennsylvania Obligated Group) 5.00% 1/1/45 | | | 3,000,000 | | | | 2,897,400 | |
(Diakon Lutheran Social Ministries Project) 5.00% 1/1/38 | | | 2,000,000 | | | | 2,106,340 | |
(Penn State Health) 4.00% 11/1/49 | | | 9,825,000 | | | | 11,100,383 | |
DuBois Hospital Authority | | | | | | | | |
(Penn Highlands Healthcare) 4.00% 7/15/48 | | | 2,000,000 | | | | 2,175,620 | |
Franklin County Industrial Development Authority Revenue | | | | | | | | |
(Menno-Haven Project) 5.00% 12/1/53 | | | 1,900,000 | | | | 1,908,778 | |
Geisinger Authority Health System Revenue | | | | | | | | |
(Geisinger Health System) | | | | | | | | |
Series A-1 5.00% 2/15/45 | | | 5,000,000 | | | | 5,907,300 | |
Series A-1 5.125% 6/1/41 | | | 4,000,000 | | | | 4,102,200 | |
95
| | |
| Schedules of investments |
| Delaware Tax-Free Pennsylvania Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Healthcare Revenue Bonds (continued) | | | | | | | | |
General Authority of Southcentral Pennsylvania Revenue | | | | | | | | |
(WellSpan Health Obligated Group) | | | | | | | | |
Series A 5.00% 6/1/38 | | | 1,000,000 | | | $ | 1,254,330 | |
Series A 5.00% 6/1/39 | | | 5,000,000 | | | | 6,253,800 | |
Indiana County Hospital Authority Revenue | | | | | | | | |
(Indiana Regional Medical Center) Series A 6.00% 6/1/39 | | | 1,625,000 | | | | 1,729,650 | |
Lancaster County Hospital Authority Revenue | | | | | | | | |
(Brethren Village Project) | | | | | | | | |
5.25% 7/1/35 | | | 250,000 | | | | 257,825 | |
5.25% 7/1/41 | | | 1,000,000 | | | | 1,041,230 | |
5.50% 7/1/45 | | | 1,000,000 | | | | 1,029,360 | |
(Landis Homes Retirement Community Project) Series A 5.00% 7/1/45 | | | 2,000,000 | | | | 2,052,460 | |
(Masonic Villages Project) | | | | | | | | |
5.00% 11/1/35 | | | 1,000,000 | | | | 1,157,330 | |
5.00% 11/1/36 | | | 510,000 | | | | 588,795 | |
5.00% 11/1/37 | | | 250,000 | | | | 288,097 | |
(St. Anne’s Retirement Community Project) 5.00% 4/1/33 | | | 1,830,000 | | | | 1,855,181 | |
Lehigh County General Purpose Authority Revenue | | | | | | | | |
(Bible Fellowship Church Homes Project) | | | | | | | | |
5.125% 7/1/32 | | | 1,000,000 | | | | 1,026,550 | |
5.25% 7/1/42 | | | 1,500,000 | | | | 1,531,095 | |
Lehigh County General Purpose Hospital Authority Revenue | | | | | | | | |
(Lehigh Valley Health Network) Series A 4.00% 7/1/49 | | | 5,000,000 | | | | 5,566,800 | |
Monroe County Hospital Authority Revenue | | | | | | | | |
(Pocono Medical Center) | | | | | | | | |
5.00% 7/1/36 | | | 1,710,000 | | | | 2,003,864 | |
5.00% 7/1/41 | | | 1,000,000 | | | | 1,159,550 | |
Monroeville Finance Authority | | | | | | | | |
(University of Pittsburgh Medical Center) 5.00% 2/15/25 | | | 1,000,000 | | | | 1,185,260 | |
Montgomery County Higher Education and Health Authority | | | | | | | | |
(Thomas Jefferson University) | | | | | | | | |
5.00% 9/1/51 | | | 2,000,000 | | | | 2,402,360 | |
Series A 4.00% 9/1/49 | | | 2,500,000 | | | | 2,711,600 | |
96
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Montgomery County Industrial Development Authority Revenue | | | | | | | | |
(Albert Einstein Healthcare Network) Series A 5.25% 1/15/45 | | | 2,500,000 | | | $ | 2,634,500 | |
(Waverly Heights Project) | | | | | | | | |
5.00% 12/1/44 | | | 500,000 | | | | 554,540 | |
5.00% 12/1/49 | | | 1,250,000 | | | | 1,381,850 | |
(Whitemarsh Continuing Care Retirement Community Project) | | | | | | | | |
4.00% 1/1/25 | | | 530,000 | | | | 532,162 | |
5.375% 1/1/50 | | | 4,000,000 | | | | 4,051,240 | |
Series A 5.375% 1/1/51 | | | 1,500,000 | | | | 1,525,215 | |
Moon Industrial Development Authority Revenue | | | | | | | | |
(Baptist Homes Society) 6.125% 7/1/50 | | | 4,000,000 | | | | 4,150,720 | |
Northampton County Industrial Development Authority | | | | | | | | |
(Morningstar Senior Living Project) 5.00% 11/1/44 | | | 1,000,000 | | | | 1,028,070 | |
Pennsylvania Economic Development Financing Authority First Mortgage Revenue | | | | | | | | |
(Tapestry Moon Senior Housing Project) | | | | | | | | |
Series A 144A 6.50% 12/1/38 # | | | 715,000 | | | | 702,924 | |
Series A 144A 6.75% 12/1/53 # | | | 5,400,000 | | | | 5,232,708 | |
Pennsylvania Economic Development Financing Authority Revenue | | | | | | | | |
(University of Pittsburgh Medical Center) Series A 5.00% 7/1/43 | | | 1,265,000 | | | | 1,393,334 | |
Pennsylvania Higher Educational Facilities Authority College & University Revenue | | | | | | | | |
(Thomas Jefferson University) | | | | | | | | |
Series A 5.00% 9/1/45 | | | 5,000,000 | | | | 5,662,800 | |
Series A 5.25% 9/1/50 | | | 2,500,000 | | | | 2,850,075 | |
Pennsylvania Higher Educational Facilities Authority Revenue | | | | | | | | |
(University of Pennsylvania Health System) | | | | | | | | |
4.00% 8/15/49 | | | 6,000,000 | | | | 6,841,920 | |
5.00% 8/15/49 | | | 6,000,000 | | | | 7,435,440 | |
Series A 4.00% 8/15/42 | | | 4,000,000 | | | | 4,506,400 | |
Philadelphia Authority for Industrial Development Revenue | | | | | | | | |
(Children’s Hospital of Philadelphia Project) 5.00% 7/1/34 | | | 5,000,000 | | | | 6,116,600 | |
97
| | |
| Schedules of investments |
| Delaware Tax-Free Pennsylvania Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Philadelphia Authority for Industrial Development Revenue | | | | | | | | |
(Thomas Jefferson University) Series A 5.00% 9/1/47 | | | 2,500,000 | | | $ | 2,885,700 | |
(Wesley Enhanced Living Obligated Group) Series A 5.00% 7/1/49 | | | 2,500,000 | | | | 2,447,500 | |
Pocono Mountains Industrial Park Authority Revenue | | | | | | | | |
(St. Luke’s Hospital - Monroe Project) Series A 5.00% 8/15/40 | | | 4,000,000 | | | | 4,456,080 | |
| | | | | | | | |
| | | | 167,943,478 | |
| | | | | | | | |
Housing Revenue Bond – 0.45% | | | | | | | | |
Philadelphia Authority for Industrial Development Revenue | | | | | | | | |
(The PresbyHomes Germantown Project) Series A 5.625% 7/1/35 (HUD) | | | 1,990,000 | | | | 1,990,557 | |
| | | | | | | | |
| | | | 1,990,557 | |
| | | | | | | | |
Lease Revenue Bonds – 1.16% | | | | | | | | |
Pennsylvania Economic Development Financing Authority Tax-Exempt Private Activity Revenue | | | | | | | | |
(The Pennsylvania Rapid Bridge Replacement Project) 5.00% 12/31/29 (AMT) | | | 500,000 | | | | 583,110 | |
Philadelphia Municipal Authority Revenue | | | | | | | | |
(Juvenile Justice Services Center) | | | | | | | | |
5.00% 4/1/37 | | | 1,250,000 | | | | 1,505,813 | |
5.00% 4/1/38 | | | 1,000,000 | | | | 1,201,730 | |
5.00% 4/1/39 | | | 1,500,000 | | | | 1,798,530 | |
| | | | | | | | |
| | | | 5,089,183 | |
| | | | | | | | |
Local General Obligation Bonds – 4.53% | | | | | | | | |
Allegheny County | | | | | | | | |
Series C-77 5.00% 11/1/43 | | | 4,535,000 | | | | 5,649,567 | |
Chester County | | | | | | | | |
4.00% 7/15/32 | | | 1,000,000 | | | | 1,220,590 | |
City of Philadelphia | | | | | | | | |
5.00% 8/1/41 | | | 1,260,000 | | | | 1,509,833 | |
Series A 5.00% 8/1/37 | | | 1,750,000 | | | | 2,117,027 | |
Series A 5.25% 7/15/29 | | | 2,500,000 | | | | 2,881,250 | |
Philadelphia School District | | | | | | | | |
Series F 5.00% 9/1/36 | | | 2,000,000 | | | | 2,386,860 | |
98
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Local General Obligation Bonds (continued) | | | | | | | | |
Philadelphia School District | | | | | | | | |
Series F 5.00% 9/1/37 | | | 1,500,000 | | | $ | 1,785,420 | |
Series F 5.00% 9/1/38 | | | 2,000,000 | | | | 2,375,520 | |
| | | | | | | | |
| | | | 19,926,067 | |
| | | | | | | | |
Pre-Refunded/Escrowed to Maturity Bonds – 8.01% | | | | | | | | |
Allegheny County | | | | | | | | |
Series C-69 5.00% 12/1/28-22 § | | | 1,000,000 | | | | 1,107,570 | |
Series C-70 5.00% 12/1/33-22 § | | | 2,205,000 | | | | 2,442,192 | |
Allegheny County Higher Education Building Authority Revenue | | | | | | | | |
(Carlow University Project) | | | | | | | | |
6.75% 11/1/31-21 § | | | 750,000 | | | | 805,972 | |
7.00% 11/1/40-21 § | | | 1,000,000 | | | | 1,077,170 | |
Central Bradford Progress Authority | | | | | | | | |
(Guthrie Health Issue) 5.375% 12/1/41-21§ | | | 1,000,000 | | | | 1,062,740 | |
City of Pittsburgh | | | | | | | | |
Series B 5.00% 9/1/26-22 § | | | 3,000,000 | | | | 3,284,340 | |
Delaware County Regional Water Quality Control Authority | | | | | | | | |
5.00% 5/1/32-23 § | | | 2,000,000 | | | | 2,254,920 | |
Monroe County Hospital Authority | | | | | | | | |
(Pocono Medical Center) | | | | | | | | |
Series A 5.00% 1/1/32-22 § | | | 1,150,000 | | | | 1,220,437 | |
Series A 5.00% 1/1/41-22 § | | | 1,500,000 | | | | 1,591,875 | |
Montgomery County Industrial Development Authority Retirement Community Revenue | | | | | | | | |
(ACTS Retirement Life Communities Obligated Group) | | | | | | | | |
5.00% 11/15/27-22 § | | | 1,250,000 | | | | 1,350,150 | |
5.00% 11/15/28-22 § | | | 1,600,000 | | | | 1,728,192 | |
5.00% 11/15/29-22 § | | | 680,000 | | | | 734,482 | |
Pennsylvania Higher Educational Facilities Authority College & University Revenue | | | | | | | | |
(AICUP Financing Program - St. Francis University Project) Series JJ2 6.25% 11/1/41-21 § | | | 2,355,000 | | | | 2,519,403 | |
(Indiana University - Student Housing Project) | | | | | | | | |
Series A 5.00% 7/1/27-22 § | | | 1,740,000 | | | | 1,884,820 | |
Series A 5.00% 7/1/41-22 § | | | 1,500,000 | | | | 1,624,845 | |
(Philadelphia University) 5.00% 6/1/32-23 § | | | 2,000,000 | | | | 2,259,340 | |
99
| | |
| Schedules of investments |
| Delaware Tax-Free Pennsylvania Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Pre-Refunded/Escrowed to Maturity Bonds (continued) | | | | | | | | |
(Shippensburg University - Student Housing Project) 6.25% 10/1/43-21 § | | | 2,000,000 | | | $ | 2,125,120 | |
(University of the Arts) 5.20% 3/15/25 (AGC) | | | 4,490,000 | | | | 4,989,827 | |
Philadelphia Authority for Industrial Development Revenue | | | | | | | | |
(New Foundations Charter School Project) 6.625% 12/15/41-22 § | | | 1,000,000 | | | | 1,140,770 | |
| | | | | | | | |
| | | | 35,204,165 | |
| | | | | | | | |
Special Tax Revenue Bonds – 12.90% | | | | | | | | |
Allentown Neighborhood Improvement Zone Development Authority Revenue | | | | | | | | |
Series A 5.00% 5/1/42 | | | 2,500,000 | | | | 2,597,900 | |
(City Center Project) 144A 5.375% 5/1/42 # | | | 3,900,000 | | | | 4,090,632 | |
(City Center Refunding Project) 144A 5.00% 5/1/42 # | | | 2,500,000 | | | | 2,612,100 | |
Chester County Industrial Development Authority Special Obligation Revenue | | | | | | | | |
(Woodlands at Greystone Project) | | | | | | | | |
144A 5.00% 3/1/38 # | | | 560,000 | | | | 567,336 | |
144A 5.125% 3/1/48 # | | | 1,000,000 | | | | 1,006,490 | |
GDB Debt Recovery Authority | | | | | | | | |
(Taxable) 7.50% 8/20/40 | | | 4,175,172 | | | | 2,865,212 | |
Northampton County Industrial Development Authority | | | | | | | | |
(Route 33 Project) 7.00% 7/1/32 | | | 1,800,000 | | | | 1,937,538 | |
Port Authority of Allegheny County | | | | | | | | |
5.75% 3/1/29 | | | 5,200,000 | | | | 5,334,368 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.75% 7/1/53 | | | 7,958,000 | | | | 8,364,176 | |
Series A-1 5.00% 7/1/58 | | | 13,591,000 | | | | 14,511,111 | |
Series A-1 5.381% 7/1/46 ^ | | | 24,055,000 | | | | 6,900,658 | |
Series A-2 4.329% 7/1/40 | | | 3,150,000 | | | | 3,307,531 | |
Series A-2 4.536% 7/1/53 | | | 1,000,000 | | | | 1,036,770 | |
100
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Washington County Redevelopment Authority Revenue | | | | | | | | |
(Victory Centre Tax Increment Financing Project) 5.00% 7/1/35 | | | 1,500,000 | | | $ | 1,532,205 | |
| | | | | | | | |
| | | | 56,664,027 | |
| | | | | | | | |
State General Obligation Bonds – 2.68% | | | | | | | | |
Commonwealth of Pennsylvania | | | | | | | | |
5.00% 9/15/26 | | | 3,340,000 | | | | 4,194,606 | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 8.00% 7/1/35 ‡ | | | 2,175,000 | | | | 1,329,469 | |
Series B 5.00% 7/1/35 ‡ | | | 605,000 | | | | 430,306 | |
Series C 6.00% 7/1/39 ‡ | | | 1,880,000 | | | | 1,323,050 | |
(Public Improvement) | | | | | | | | |
Series A 5.00% 7/1/24 ‡ | | | 890,000 | | | | 633,012 | |
Series A 5.125% 7/1/37 ‡ | | | 1,340,000 | | | | 871,000 | |
Series A 5.25% 7/1/34 ‡ | | | 725,000 | | | | 517,469 | |
Series A 5.375% 7/1/33 ‡ | | | 600,000 | | | | 423,750 | |
Series A 6.00% 7/1/38 ‡ | | | 880,000 | | | | 632,500 | |
Series B 5.75% 7/1/38 ‡ | | | 2,000,000 | | | | 1,417,500 | |
| | | | | | | | |
| | | | 11,772,662 | |
| | | | | | | | |
Transportation Revenue Bonds – 8.70% | | | | | | | | |
Delaware River Joint Toll Bridge Commission | | | | | | | | |
(Pennsylvania - New Jersey) 5.00% 7/1/47 | | | 5,000,000 | | | | 6,049,700 | |
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue | | | | | | | | |
(Amtrak Project) | | | | | | | | |
Series A 5.00% 11/1/32 (AMT) | | | 3,500,000 | | | | 3,798,340 | |
Series A 5.00% 11/1/41 (AMT) | | | 5,000,000 | | | | 5,382,550 | |
Pennsylvania Economic Development Financing Authority Tax-Exempt Private Activity Revenue | | | | | | | | |
(The Pennsylvania Rapid Bridge Replacement Project) 5.00% 12/31/34 (AMT) | | | 2,115,000 | | | | 2,421,252 | |
Pennsylvania Turnpike Commission Revenue | | | | | | | | |
Series A 5.00% 12/1/23 | | | 2,450,000 | | | | 2,799,394 | |
Series A 5.00% 12/1/49 | | | 2,000,000 | | | | 2,446,860 | |
Series C 5.00% 12/1/44 | | | 5,000,000 | | | | 5,608,750 | |
Philadelphia Airport Revenue | | | | | | | | |
Series A 5.00% 7/1/47 | | | 3,750,000 | | | | 4,366,463 | |
Series B 5.00% 7/1/47 (AMT) | | | 3,000,000 | | | | 3,450,300 | |
101
| | |
| Schedules of investments |
| Delaware Tax-Free Pennsylvania Fund | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
|
| |
Municipal Bonds (continued) | | | | | | | | |
|
| |
Transportation Revenue Bonds (continued) | | | | | | | | |
Susquehanna Area Regional Airport Authority Revenue | | | | | | | | |
5.00% 1/1/35 (AMT) | | | 800,000 | | | $ | 857,808 | |
5.00% 1/1/38 (AMT) | | | 1,000,000 | | | | 1,062,840 | |
| | | | | | | | |
| | | | 38,244,257 | |
| | | | | | | | |
Water & Sewer Revenue Bonds – 1.30% | | | | | | | | |
Allegheny County Sanitary Authority | | | | | | | | |
5.00% 12/1/28 (BAM) | | | 2,345,000 | | | | 2,872,297 | |
Philadelphia Water & Wastewater Revenue | | | | | | | | |
Series A 5.00% 7/1/45 | | | 2,500,000 | | | | 2,829,550 | |
| | | | | | | | |
| | | | 5,701,847 | |
| | | | | | | | |
Total Municipal Bonds (cost $407,528,531) | | | | 432,822,441 | |
| | | | | | | | |
| | | | | | | | |
|
| |
Short-Term Investments – 0.35% | | | | | | | | |
|
| |
Variable Rate Demand Notes – 0.35%¤ | | | | | | | | |
Philadelphia Hospitals & Higher Education Facilities Authority Revenue | | | | | | | | |
(Children’s Hospital of Philadelphia Project) | | | | | | | | |
Series A 0.01% 2/15/21 (SPA - Wells Fargo Bank, N.A.) | | | 645,000 | | | | 645,000 | |
Series B 0.01% 7/1/41 (SPA - Bank of America, N.A.) | | | 900,000 | | | | 900,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $1,545,000) | | | | 1,545,000 | |
| | | | | | | | |
| | |
Total Value of Securities–98.85%
(cost $409,073,531) | | | | | | $ | 434,367,441 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $20,852,127, which represents 4.75% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
| ‡ | Non-income producing security. Security is currently in default. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 8 in “Notes to financial statements.” |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
102
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
HUD – Housing and Urban Development Section 8
LLC – Limited Liability Corporation
N.A. – National Association
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
103
| | |
| Statements of assets and liabilities |
| | | August 31, 2020 |
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Arizona Fund | | | Delaware Tax-Free
California Fund | | | Delaware Tax-Free
Colorado Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value* | | $ | 79,139,032 | | | $ | 83,306,407 | | | $ | 221,058,797 | |
Cash | | | 107,337 | | | | 862,654 | | | | — | |
Dividend and interest receivable | | | 676,333 | | | | 907,049 | | | | 2,273,235 | |
Receivable for fund shares sold | | | 21,765 | | | | 233,147 | | | | 61,071 | |
| | | | | | | | | | | | |
Total Assets | | | 79,944,467 | | | | 85,309,257 | | | | 223,393,103 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Cash due to custodian | | | — | | | | — | | | | 11,626 | |
Distribution payable | | | 49,924 | | | | 54,873 | | | | 140,201 | |
Investment management fee payable | | | 22,442 | | | | 25,477 | | | | 79,721 | |
Distribution fees payable to affiliates | | | 15,376 | | | | 15,263 | | | | 41,737 | |
Accounting and administration expenses payable to non-affiliates | | | 14,760 | | | | 14,899 | | | | 19,482 | |
Reports and statements to shareholders expenses payable to non-affiliates | | | 7,018 | | | | 7,412 | | | | 12,725 | |
Audit and tax fees payable | | | 5,500 | | | | 5,500 | | | | 5,500 | |
Other accrued expenses | | | 4,524 | | | | 5,408 | | | | 8,822 | |
Dividend disbursing and transfer agent fees and expenses payable to non-affiliates | | | 3,524 | | | | 4,765 | | | | 12,431 | |
Dividend disbursing and transfer agent fees and expenses payable to affiliates | | | 629 | | | | 667 | | | | 1,756 | |
Trustees’ fees and expenses payable to affiliates | | | 585 | | | | 625 | | | | 1,635 | |
Accounting and administration expenses payable to affiliates | | | 570 | | | | 584 | | | | 985 | |
Legal fees payable to affiliates | | | 140 | | | | 150 | | | | 392 | |
Payable for fund shares redeemed | | | 58 | | | | 187,612 | | | | 39,013 | |
| | | | | | | | | | | | |
Total Liabilities | | | 125,050 | | | | 323,235 | | | | 376,026 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 79,819,417 | | | $ | 84,986,022 | | | $ | 223,017,077 | |
| | | | | | | | | | | | |
| | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 75,762,289 | | | $ | 80,243,932 | | | $ | 213,401,580 | |
Total distributable earnings (loss) | | | 4,057,128 | | | | 4,742,090 | | | | 9,615,497 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 79,819,417 | | | $ | 84,986,022 | | | $ | 223,017,077 | |
| | | | | | | | | | | | |
104
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Arizona Fund | | | Delaware Tax-Free
California Fund | | | Delaware Tax-Free
Colorado Fund | |
Net Asset Value | | | | | | | | | | | | |
Class A: | | | | | | | | | | | | |
Net assets | | $ | 62,185,962 | | | $ | 44,058,928 | | | $ | 162,954,732 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 5,382,419 | | | | 3,616,196 | | | | 14,340,121 | |
Net asset value per share | | $ | 11.55 | | | $ | 12.18 | | | $ | 11.36 | |
Sales charge | | | 4.50 | % | | | 4.50 | % | | | 4.50 | % |
Offering price per share, equal to net asset value per share / (1 - sales charge) | | $ | 12.09 | | | $ | 12.75 | | | $ | 11.90 | |
Class C: | | | | | | | | | | | | |
Net assets | | $ | 2,561,400 | | | $ | 6,829,148 | | | $ | 8,121,250 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 221,134 | | | | 559,530 | | | | 712,849 | |
Net asset value per share | | $ | 11.58 | | | $ | 12.21 | | | $ | 11.39 | |
Institutional Class: | | | | | | | | | | | | |
Net assets | | $ | 15,072,055 | | | $ | 34,097,946 | | | $ | 51,941,095 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 1,304,391 | | | | 2,798,826 | | | | 4,571,050 | |
Net asset value per share | | $ | 11.55 | | | $ | 12.18 | | | $ | 11.36 | |
| | | | | | | | | | | | |
| | | |
*Investments, at cost | | $ | 75,051,044 | | | $ | 78,283,851 | | | $ | 209,451,545 | |
See accompanying notes, which are an integral part of the financial statements.
105
Statements of assets and liabilities
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Idaho Fund | | | Delaware Tax-Free
New York Fund | | | Delaware Tax-Free
Pennsylvania Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value* | | $ | 104,476,471 | | | $ | 87,104,979 | | | $ | 434,367,441 | |
Cash | | | — | | | | 77,946 | | | | 90,741 | |
Dividend and interest receivable | | | 1,265,877 | | | | 867,665 | | | | 5,094,433 | |
Receivable for fund shares sold | | | 132,155 | | | | 506,928 | | | | 838,767 | |
| | | | | | | | | | | | |
Total Assets | | | 105,874,503 | | | | 88,557,518 | | | | 440,391,382 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Cash due to custodian | | | 36,084 | | | | — | | | | — | |
Payable for fund shares redeemed | | | 133,546 | | | | 480,513 | | | | 323,754 | |
Distribution payable | | | 64,060 | | | | 52,158 | | | | 293,350 | |
Investment management fee payable | | | 35,779 | | | | 24,011 | | | | 171,677 | |
Distribution fees payable to affiliates | | | 20,482 | | | | 15,215 | | | | 91,752 | |
Accounting and administration expenses payable to non-affiliates | | | 15,571 | | | | 15,047 | | | | 26,621 | |
Reports and statements to shareholders expenses payable to non-affiliates | | | 7,455 | | | | 6,648 | | | | 23,204 | |
Dividend disbursing and transfer agent fees and expenses payable to non-affiliates | | | 5,537 | | | | 5,542 | | | | 24,157 | |
Audit and tax fees payable | | | 5,500 | | | | 5,500 | | | | 5,500 | |
Other accrued expenses | | | 5,336 | | | | 6,001 | | | | 14,624 | |
Dividend disbursing and transfer agent fees and expenses payable to affiliates | | | 830 | | | | 695 | | | | 3,461 | |
Trustees’ fees and expenses payable to affiliates | | | 773 | | | | 645 | | | | 3,228 | |
Accounting and administration expenses payable to affiliates | | | 645 | | | | 594 | | | | 1,612 | |
Legal fees payable to affiliates | | | 185 | | | | 155 | | | | 774 | |
| | | | | | | | | | | | |
Total Liabilities | | | 331,783 | | | | 612,724 | | | | 983,714 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 105,542,720 | | | $ | 87,944,794 | | | $ | 439,407,668 | |
| | | | | | | | | | | | |
| | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 105,528,187 | | | $ | 83,950,452 | | | $ | 414,133,959 | |
Total distributable earnings (loss) | | | 14,533 | | | | 3,994,342 | | | | 25,273,709 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 105,542,720 | | | $ | 87,944,794 | | | $ | 439,407,668 | |
| | | | | | | | | | | | |
106
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Idaho Fund | | | Delaware Tax-Free
New York Fund | | | Delaware Tax-Free
Pennsylvania Fund | |
Net Asset Value | | | | | | | | | | | | |
Class A: | | | | | | | | | | | | |
Net assets | | $ | 60,666,830 | | | $ | 42,513,909 | | | $ | 364,480,386 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 5,265,789 | | | | 3,645,081 | | | | 45,225,844 | |
Net asset value per share | | $ | 11.52 | | | $ | 11.66 | | | $ | 8.06 | |
Sales charge | | | 4.50 | % | | | 4.50 | % | | | 4.50 | % |
Offering price per share, equal to net asset value per share / (1 - sales charge) | | $ | 12.06 | | | $ | 12.21 | | | $ | 8.44 | |
Class C: | | | | | | | | | | | | |
Net assets | | $ | 8,818,730 | | | $ | 7,037,107 | | | $ | 19,008,521 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 766,037 | | | | 604,930 | | | | 2,358,083 | |
Net asset value per share | | $ | 11.51 | | | $ | 11.63 | | | $ | 8.06 | |
Institutional Class: | | | | | | | | | | | | |
Net assets | | $ | 36,057,160 | | | $ | 38,393,778 | | | $ | 55,918,761 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 3,129,040 | | | | 3,293,490 | | | | 6,943,439 | |
Net asset value per share | | $ | 11.52 | | | $ | 11.66 | | | $ | 8.05 | |
| | | | | | | | | | | | |
| | | |
*Investments, at cost | | $ | 99,559,025 | | | $ | 83,436,135 | | | $ | 409,073,531 | |
See accompanying notes, which are an integral part of the financial statements.
107
| | |
| Statements of operations |
| | | Year ended August 31, 2020 |
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Arizona Fund | | | Delaware Tax-Free
California Fund | | | Delaware Tax-Free
Colorado Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 2,925,011 | | | $ | 3,683,059 | | | $ | 8,280,628 | |
Dividends | | | — | | | | — | | | | 10,372 | |
| | | | | | | | | | | | |
| | | 2,925,011 | | | 3,683,059 | | | 8,291,000 | |
| | | | | | | | | | | | |
| | | |
Expenses: | | | | | | | | | | | | |
Management fees | | | 394,491 | | | | 508,126 | | | | 1,215,638 | |
Distribution expenses - Class A | | | 152,308 | | | | 104,214 | | | | 410,237 | |
Distribution expenses - Class C | | | 27,288 | | | | 99,899 | | | | 93,560 | |
Accounting and administration expenses | | | 52,082 | | | | 54,282 | | | | 75,591 | |
Audit and tax fees | | | 45,140 | | | | 45,140 | | | | 45,140 | |
Dividend disbursing and transfer agent fees and expenses | | | 42,899 | | | | 49,529 | | | | 128,526 | |
Registration fees | | | 16,847 | | | | 10,890 | | | | 11,795 | |
Reports and statements to shareholders expenses | | | 13,270 | | | | 14,292 | | | | 24,675 | |
Legal fees | | | 9,542 | | | | 10,632 | | | | 21,810 | |
Trustees’ fees and expenses | | | 4,558 | | | | 5,321 | | | | 12,748 | |
Custodian fees | | | 2,535 | | | | 2,927 | | | | 6,318 | |
Other | | | 17,573 | | | | 19,433 | | | | 27,383 | |
| | | | | | | | | | | | |
| | | 778,533 | | | | 924,685 | | | | 2,073,421 | |
Less expenses waived | | | (132,505 | ) | | | (192,366 | ) | | | (264,839 | ) |
Less expenses paid indirectly | | | (871 | ) | | | (1,131 | ) | | | (532 | ) |
| | | | | | | | | | | | |
Total operating expenses | | | 645,157 | | | | 731,188 | | | | 1,808,050 | |
| | | | | | | | | | | | |
Net Investment Income | | | 2,279,854 | | | | 2,951,871 | | | | 6,482,950 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain (Loss): | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 142,666 | | | | (75,285 | ) | | | 841,092 | |
Net change in unrealized appreciation (depreciation) of investments | | | (1,042,553 | ) | | | (2,508,025 | ) | | | (3,462,710 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss | | | (899,887 | ) | | | (2,583,310 | ) | | | (2,621,618 | ) |
| | | | | | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 1,379,967 | | | $ | 368,561 | | | $ | 3,861,332 | |
| | | | | | | | | | | | |
108
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Idaho Fund | | | Delaware Tax-Free
New York Fund | | | Delaware Tax-Free
Pennsylvania Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 3,894,208 | | | $ | 3,193,813 | | | $ | 17,212,774 | |
Dividends | | | 8,647 | | | | — | | | | — | |
| | | | | | | | | | | | |
| | | 3,902,855 | | | | 3,193,813 | | | | 17,212,774 | |
| | | | | | | | | | | | |
| | | |
Expenses: | | | | | | | | | | | | |
Management fees | | | 575,159 | | | | 480,384 | | | | 2,415,901 | |
Distribution expenses - Class A | | | 142,451 | | | | 93,792 | | | | 893,208 | |
Distribution expenses - Class C | | | 109,362 | | | | 112,954 | | | | 216,851 | |
Accounting and administration expenses | | | 56,320 | | | | 53,481 | | | | 111,689 | |
Audit and tax fees | | | 45,140 | | | | 45,140 | | | | 45,140 | |
Dividend disbursing and transfer agent fees and expenses | | | 64,640 | | | | 53,231 | | | | 249,565 | |
Registration fees | | | 9,965 | | | | 17,455 | | | | 21,209 | |
Reports and statements to shareholders expenses | | | 13,632 | | | | 13,079 | | | | 45,103 | |
Legal fees | | | 11,110 | | | | 9,395 | | | | 39,957 | |
Trustees’ fees and expenses | | | 6,015 | | | | 5,031 | | | | 25,362 | |
Custodian fees | | | 3,449 | | | | 3,008 | | | | 16,761 | |
Other | | | 17,997 | | | | 20,663 | | | | 36,587 | |
| | | | | | | | | | | | |
| | | 1,055,240 | | | | 907,613 | | | | 4,117,333 | |
Less expenses waived | | | (164,889 | ) | | | (219,323 | ) | | | (412,925 | ) |
Less expenses paid indirectly | | | (567 | ) | | | (1,057 | ) | | | (1,926 | ) |
| | | | | | | | | | | | |
Total operating expenses | | | 889,784 | | | | 687,233 | | | | 3,702,482 | |
| | | | | | | | | | | | |
Net Investment Income | | | 3,013,071 | | | | 2,506,580 | | | | 13,510,292 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain (Loss): | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | (436,187 | ) | | | 721,770 | | | | 1,773,628 | |
Net change in unrealized appreciation (depreciation) of investments | | | (1,157,926 | ) | | | (1,943,082 | ) | | | (8,662,514 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss | | | (1,594,113 | ) | | | (1,221,312 | ) | | | (6,888,886 | ) |
| | | | | | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 1,418,958 | | | $ | 1,285,268 | | | $ | 6,621,406 | |
| | | | | | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
109
Statements of changes in net assets
Delaware Tax-Free Arizona Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 2,279,854 | | | $ | 2,491,421 | |
Net realized gain | | | 142,666 | | | | 393,695 | |
Net change in unrealized appreciation (depreciation) | | | (1,042,553 | ) | | | 2,638,928 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,379,967 | | | | 5,524,044 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (1,860,733 | ) | | | (1,967,135 | ) |
Class C | | | (63,009 | ) | | | (76,738 | ) |
Institutional Class | | | (503,085 | ) | | | (409,955 | ) |
| | | | | | | | |
| | | (2,426,827 | ) | | | (2,453,828 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 4,040,085 | | | | 2,955,388 | |
Class C | | | 475,896 | | | | 480,567 | |
Institutional Class | | | 4,314,261 | | | | 6,622,321 | |
| | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 1,492,624 | | | | 1,574,396 | |
Class C | | | 58,762 | | | | 72,176 | |
Institutional Class | | | 476,431 | | | | 386,192 | |
| | | | | | | | |
| | | 10,858,059 | | | | 12,091,040 | |
| | | | | | | | |
110
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (4,618,457 | ) | | $ | (8,235,796 | ) |
Class C | | | (1,028,355 | ) | | | (701,906 | ) |
Institutional Class | | | (3,614,076 | ) | | | (3,500,751 | ) |
| | | | | | | | |
| | | (9,260,888 | ) | | | (12,438,453 | ) |
| | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 1,597,171 | | | | (347,413 | ) |
| | | | | | | | |
Net Increase in Net Assets | | | 550,311 | | | | 2,722,803 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 79,269,106 | | | | 76,546,303 | |
| | | | | | | | |
End of year | | $ | 79,819,417 | | | $ | 79,269,106 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
111
Statements of changes in net assets
Delaware Tax-Free California Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 2,951,871 | | | $ | 3,217,006 | |
Net realized gain (loss) | | | (75,285 | ) | | | 685,110 | |
Net change in unrealized appreciation (depreciation) | | | (2,508,025 | ) | | | 3,465,712 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 368,561 | | | | 7,367,828 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (1,696,888 | ) | | | (1,658,408 | ) |
Class C | | | (337,450 | ) | | | (324,849 | ) |
Institutional Class | | | (1,813,306 | ) | | | (1,388,704 | ) |
| | | | | | | | |
| | | (3,847,644 | ) | | | (3,371,961 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 9,654,592 | | | | 2,965,405 | |
Class C | | | 600,032 | | | | 1,612,305 | |
Institutional Class | | | 21,957,497 | | | | 24,977,510 | |
| | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 1,518,859 | | | | 1,478,640 | |
Class C | | | 281,331 | | | | 268,745 | |
Institutional Class | | | 1,276,762 | | | | 941,368 | |
| | | | | | | | |
| | | 35,289,073 | | | | 32,243,973 | |
| | | | | | | | |
112
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (8,275,307 | ) | | $ | (17,173,906 | ) |
Class C | | | (5,300,634 | ) | | | (3,810,193 | ) |
Institutional Class | | | (31,647,616 | ) | | | (15,995,310 | ) |
| | | | | | | | |
| | | (45,223,557 | ) | | | (36,979,409 | ) |
| | | | | | | | |
Decrease in net assets derived from capital share transactions | | | (9,934,484 | ) | | | (4,735,436 | ) |
| | | | | | | | |
Net Decrease in Net Assets | | | (13,413,567 | ) | | | (739,569 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 98,399,589 | | | | 99,139,158 | |
| | | | | | | | |
End of year | | $ | 84,986,022 | | | $ | 98,399,589 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
113
Statements of changes in net assets
Delaware Tax-Free Colorado Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 6,482,950 | | | $ | 6,761,506 | |
Net realized gain | | | 841,092 | | | | 680,050 | |
Net change in unrealized appreciation (depreciation) | | | (3,462,710 | ) | | | 7,595,228 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 3,861,332 | | | | 15,036,784 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (4,770,153 | ) | | | (5,362,602 | ) |
Class C | | | (201,810 | ) | | | (259,844 | ) |
Institutional Class | | | (1,499,974 | ) | | | (1,136,337 | ) |
| | | | | | | | |
| | | (6,471,937 | ) | | | (6,758,783 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 13,355,973 | | | | 10,480,175 | |
Class C | | | 755,250 | | | | 1,296,364 | |
Institutional Class | | | 23,852,027 | | | | 21,425,538 | |
| | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 4,244,536 | | | | 4,775,340 | |
Class C | | | 195,451 | | | | 246,683 | |
Institutional Class | | | 1,381,497 | | | | 1,026,471 | |
| | | | | | | | |
| | | 43,784,734 | | | | 39,250,571 | |
| | | | | | | | |
114
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (19,822,488 | ) | | $ | (18,606,927 | ) |
Class C | | | (3,060,813 | ) | | | (2,489,442 | ) |
Institutional Class | | | (15,090,632 | ) | | | (9,058,719 | ) |
| | | | | | | | |
| | | (37,973,933 | ) | | | (30,155,088 | ) |
| | | | | | | | |
Increase in net assets derived from capital share transactions | | | 5,810,801 | | | | 9,095,483 | |
| | | | | | | | |
Net Increase in Net Assets | | | 3,200,196 | | | | 17,373,484 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 219,816,881 | | | | 202,443,397 | |
| | | | | | | | |
End of year | | $ | 223,017,077 | | | $ | 219,816,881 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
115
Statements of changes in net assets
Delaware Tax-Free Idaho Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 3,013,071 | | | $ | 3,022,948 | |
Net realized gain (loss) | | | (436,187 | ) | | | 124,264 | |
Net change in unrealized appreciation (depreciation) | | | (1,157,926 | ) | | | 3,691,615 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,418,958 | | | | 6,838,827 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (1,630,043 | ) | | | (1,747,356 | ) |
Class C | | | (231,712 | ) | | | (348,293 | ) |
Institutional Class | | | (1,140,918 | ) | | | (919,443 | ) |
| | | | | | | | |
| | | (3,002,673 | ) | | | (3,015,092 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 11,036,343 | | | | 5,186,079 | |
Class C | | | 1,110,294 | | | | 981,176 | |
Institutional Class | | | 12,301,476 | | | | 21,084,240 | |
| | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 1,518,853 | | | | 1,618,585 | |
Class C | | | 222,405 | | | | 337,431 | |
Institutional Class | | | 1,009,131 | | | | 786,152 | |
| | | | | | | | |
| | | 27,198,502 | | | | 29,993,663 | |
| | | | | | | | |
116
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (6,770,542 | ) | | $ | (12,821,129 | ) |
Class C | | | (5,190,934 | ) | | | (6,549,156 | ) |
Institutional Class | | | (11,622,682 | ) | | | (9,266,863 | ) |
| | | | | | | | |
| | | (23,584,158 | ) | | | (28,637,148 | ) |
| | | | | | | | |
Increase in net assets derived from capital share transactions | | | 3,614,344 | | | | 1,356,515 | |
| | | | | | | | |
Net Increase in Net Assets | | | 2,030,629 | | | | 5,180,250 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 103,512,091 | | | | 98,331,841 | |
| | | | | | | | |
End of year | | $ | 105,542,720 | | | $ | 103,512,091 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
117
Statements of changes in net assets
Delaware Tax-Free New York Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 2,506,580 | | | $ | 2,622,309 | |
Net realized gain | | | 721,770 | | | | 585,562 | |
Net change in unrealized appreciation (depreciation) | | | (1,943,082 | ) | | | 3,228,074 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,285,268 | | | | 6,435,945 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (1,250,944 | ) | | | (1,100,376 | ) |
Class C | | | (299,096 | ) | | | (331,625 | ) |
Institutional Class | | | (1,387,966 | ) | | | (1,194,609 | ) |
| | | | | | | | |
| | | (2,938,006 | ) | | | (2,626,610 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 11,463,562 | | | | 6,693,985 | |
Class C | | | 553,210 | | | | 1,503,175 | |
Institutional Class | | | 9,818,570 | | | | 16,439,856 | |
| | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 1,098,145 | | | | 1,011,485 | |
Class C | | | 204,540 | | | | 232,362 | |
Institutional Class | | | 1,267,893 | | | | 1,065,959 | |
| | | | | | | | |
| | | 24,405,920 | | | | 26,946,822 | |
| | | | | | | | |
118
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (5,523,695 | ) | | $ | (11,304,145 | ) |
Class C | | | (6,950,159 | ) | | | (3,817,643 | ) |
Institutional Class | | | (11,214,772 | ) | | | (12,814,924 | ) |
| | | | | | | | |
| | | (23,688,626 | ) | | | (27,936,712 | ) |
| | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 717,294 | | | | (989,890 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (935,444 | ) | | | 2,819,445 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 88,880,238 | | | | 86,060,793 | |
| | | | | | | | |
End of year | | $ | 87,944,794 | | | $ | 88,880,238 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
119
Statements of changes in net assets
Delaware Tax-Free Pennsylvania Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 13,510,292 | | | $ | 15,062,570 | |
Net realized gain | | | 1,773,628 | | | | 2,465,773 | |
Net change in unrealized appreciation (depreciation) | | | (8,662,514 | ) | | | 14,954,570 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 6,621,406 | | | | 32,482,913 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (14,779,475 | ) | | | (12,803,560 | ) |
Class C | | | (710,638 | ) | | | (683,223 | ) |
Institutional Class | | | (2,147,319 | ) | | | (1,575,787 | ) |
| | | | | | | | |
| | | (17,637,432 | ) | | | (15,062,570 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 34,845,316 | | | | 30,339,814 | |
Class C | | | 2,876,652 | | | | 2,951,101 | |
Institutional Class | | | 14,679,950 | | | | 19,813,229 | |
| | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 13,086,822 | | | | 11,094,776 | |
Class C | | | 679,779 | | | | 645,844 | |
Institutional Class | | | 1,843,684 | | | | 1,355,377 | |
| | | | | | | | |
| | | 68,012,203 | | | | 66,200,141 | |
| | | | | | | | |
120
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (51,146,281 | ) | | $ | (57,138,828 | ) |
Class C | | | (8,994,602 | ) | | | (5,875,403 | ) |
Institutional Class | | | (6,718,565 | ) | | | (17,175,868 | ) |
| | | | | | | | |
| | | (66,859,448 | ) | | | (80,190,099 | ) |
| | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 1,152,755 | | | | (13,989,958 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (9,863,271 | ) | | | 3,430,385 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 449,270,939 | | | | 445,840,554 | |
| | | | | | | | |
End of year | | $ | 439,407,668 | | | $ | 449,270,939 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
121
Financial highlights
Delaware Tax-Free Arizona Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
122
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.70 | | | | | $ | 11.24 | | | | | $ | 11.48 | | | | | $ | 11.83 | | | | | $ | 11.44 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.33 | | | | | | 0.37 | | | | | | 0.36 | | | | | | 0.37 | | | | | | 0.38 | |
| | | (0.13 | ) | | | | | 0.46 | | | | | | (0.24 | ) | | | | | (0.35 | ) | | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.20 | | | | | | 0.83 | | | | | | 0.12 | | | | | | 0.02 | | | | | | 0.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.35 | ) | | | | | (0.37 | ) | | | | | (0.36 | ) | | | | | (0.37 | ) | | | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.35 | ) | | | | | (0.37 | ) | | | | | (0.36 | ) | | | | | (0.37 | ) | | | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.55 | | | | | $ | 11.70 | | | | | $ | 11.24 | | | | | $ | 11.48 | | | | | $ | 11.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.79% | | | | | | 7.51% | | | | | | 1.11% | | | | | | 0.24% | | | | | | 6.79% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 62,186 | | | | | $ | 62,033 | | | | | $ | 63,327 | | | | | $ | 66,839 | | | | | $ | 74,556 | |
| | | 0.84% | | | | | | 0.84% | | | | | | 0.84% | | | | | | 0.84% | | | | | | 0.84% | |
| | | 1.01% | | | | | | 1.02% | | | | | | 1.00% | | | | | | 0.97% | | | | | | 0.96% | |
| | | 2.87% | | | | | | 3.29% | | | | | | 3.23% | | | | | | 3.25% | | | | | | 3.23% | |
| | | 2.70% | | | | | | 3.11% | | | | | | 3.07% | | | | | | 3.12% | | | | | | 3.11% | |
| | | 36% | | | | | | 31% | | | | | | 6% | | | | | | 9% | | | | | | 14% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
123
Financial highlights
Delaware Tax-Free Arizona Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| |
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
124
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.73 | | | | | $ | 11.27 | | | | | $ | 11.51 | | | | | $ | 11.87 | | | | | $ | 11.47 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.24 | | | | | | 0.28 | | | | | | 0.28 | | | | | | 0.29 | | | | | | 0.29 | |
| | | (0.12 | ) | | | | | 0.46 | | | | | | (0.24 | ) | | | | | (0.37 | ) | | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.12 | | | | | | 0.74 | | | | | | 0.04 | | | | | | (0.08 | ) | | | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.27 | ) | | | | | (0.28 | ) | | | | | (0.28 | ) | | | | | (0.28 | ) | | | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.27 | ) | | | | | (0.28 | ) | | | | | (0.28 | ) | | | | | (0.28 | ) | | | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.58 | | | | | $ | 11.73 | | | | | $ | 11.27 | | | | | $ | 11.51 | | | | | $ | 11.87 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.03% | | | | | | 6.70% | | | | | | 0.36% | | | | | | (0.59% | ) | | | | | 6.07% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 2,561 | | | | | $ | 3,100 | | | | | $ | 3,122 | | | | | $ | 5,215 | | | | | $ | 6,816 | |
| | | 1.59% | | | | | | 1.59% | | | | | | 1.59% | | | | | | 1.59% | | | | | | 1.59% | |
| | | 1.76% | | | | | | 1.77% | | | | | | 1.75% | | | | | | 1.72% | | | | | | 1.71% | |
| | | 2.12% | | | | | | 2.54% | | | | | | 2.48% | | | | | | 2.50% | | | | | | 2.48% | |
| | | 1.95% | | | | | | 2.36% | | | | | | 2.32% | | | | | | 2.37% | | | | | | 2.36% | |
| | | 36% | | | | | | 31% | | | | | | 6% | | | | | | 9% | | | | | | 14% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
125
Financial highlights
Delaware Tax-Free Arizona Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
126
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.70 | | | | | $ | 11.24 | | | | | $ | 11.48 | | | | | $ | 11.84 | | | | | $ | 11.44 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.36 | | | | | | 0.39 | | | | | | 0.39 | | | | | | 0.40 | | | | | | 0.41 | |
| | | (0.13 | ) | | | | | 0.46 | | | | | | (0.24 | ) | | | | | (0.36 | ) | | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.23 | | | | | | 0.85 | | | | | | 0.15 | | | | | | 0.04 | | | | | | 0.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.38 | ) | | | | | (0.39 | ) | | | | | (0.39 | ) | | | | | (0.40 | ) | | | | | (0.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.38 | ) | | | | | (0.39 | ) | | | | | (0.39 | ) | | | | | (0.40 | ) | | | | | (0.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.55 | | | | | $ | 11.70 | | | | | $ | 11.24 | | | | | $ | 11.48 | | | | | $ | 11.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 2.05% | | | | | | 7.78% | | | | | | 1.36% | | | | | | 0.40% | | | | | | 7.14% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 15,072 | | | | | $ | 14,136 | | | | | $ | 10,097 | | | | | $ | 7,080 | | | | | $ | 3,645 | |
| | | 0.59% | | | | | | 0.59% | | | | | | 0.59% | | | | | | 0.59% | | | | | | 0.59% | |
| | | 0.76% | | | | | | 0.77% | | | | | | 0.75% | | | | | | 0.72% | | | | | | 0.71% | |
| | | 3.12% | | | | | | 3.54% | | | | | | 3.48% | | | | | | 3.50% | | | | | | 3.48% | |
| | | 2.95% | | | | | | 3.36% | | | | | | 3.32% | | | | | | 3.37% | | | | | | 3.36% | |
| | | 36% | | | | | | 31% | | | | | | 6% | | | | | | 9% | | | | | | 14% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
127
Financial highlights
Delaware Tax-Free California Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
128
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 12.49 | | | | | $ | 11.98 | | | | | $ | 12.26 | | | | | $ | 12.60 | | | | | $ | 12.11 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.38 | | | | | | 0.40 | | | | | | 0.40 | | | | | | 0.41 | | | | | | 0.43 | |
| | | (0.20 | ) | | | | | 0.53 | | | | | | (0.28 | ) | | | | | (0.34 | ) | | | | | 0.48 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.18 | | | | | | 0.93 | | | | | | 0.12 | | | | | | 0.07 | | | | | | 0.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.38 | ) | | | | | (0.40 | ) | | | | | (0.40 | ) | | | | | (0.41 | ) | | | | | (0.42 | ) |
| | | (0.11 | ) | | | | | (0.02 | ) | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.49 | ) | | | | | (0.42 | ) | | | | | (0.40 | ) | | | | | (0.41 | ) | | | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 12.18 | | | | | $ | 12.49 | | | | | $ | 11.98 | | | | | $ | 12.26 | | | | | $ | 12.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.59% | | | | | | 7.99% | | | | | | 1.00% | | | | | | 0.63% | | | | | | 7.67% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 44,059 | | | | | $ | 42,203 | | | | | $ | 53,171 | | | | | $ | 54,076 | | | | | $ | 63,284 | |
| | | 0.82% | | | | | | 0.82% | | | | | | 0.82% | | | | | | 0.82% | | | | | | 0.82% | |
| | | 1.03% | | | | | | 1.03% | | | | | | 1.02% | | | | | | 1.01% | | | | | | 1.01% | |
| | | 3.17% | | | | | | 3.36% | | | | | | 3.30% | | | | | | 3.36% | | | | | | 3.43% | |
| | | 2.96% | | | | | | 3.15% | | | | | | 3.10% | | | | | | 3.17% | | | | | | 3.24% | |
| | | 36% | | | | | | 32% | | | | | | 16% | | | | | | 27% | | | | | | 18% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
129
Financial highlights
Delaware Tax-Free California Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
130
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 12.52 | | | | | $ | 12.00 | | | | | $ | 12.28 | | | | | $ | 12.62 | | | | | $ | 12.13 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.29 | | | | | | 0.32 | | | | | | 0.31 | | | | | | 0.32 | | | | | | 0.33 | |
| | | (0.20 | ) | | | | | 0.54 | | | | | | (0.28 | ) | | | | | (0.34 | ) | | | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.09 | | | | | | 0.86 | | | | | | 0.03 | | | | | | (0.02 | ) | | | | | 0.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.29 | ) | | | | | (0.32 | ) | | | | | (0.31 | ) | | | | | (0.32 | ) | | | | | (0.33 | ) |
| | | (0.11 | ) | | | | | (0.02 | ) | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.40 | ) | | | | | (0.34 | ) | | | | | (0.31 | ) | | | | | (0.32 | ) | | | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 12.21 | | | | | $ | 12.52 | | | | | $ | 12.00 | | | | | $ | 12.28 | | | | | $ | 12.62 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 0.83% | | | | | | 7.26% | | | | | | 0.25% | | | | | | (0.12% | ) | | | | | 6.86% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 6,829 | | | | | $ | 11,551 | | | | | $ | 13,015 | | | | | $ | 16,473 | | | | | $ | 18,827 | |
| | | 1.57% | | | | | | 1.57% | | | | | | 1.57% | | | | | | 1.57% | | | | | | 1.57% | |
| | | 1.78% | | | | | | 1.78% | | | | | | 1.77% | | | | | | 1.76% | | | | | | 1.76% | |
| | | 2.42% | | | | | | 2.61% | | | | | | 2.55% | | | | | | 2.61% | | | | | | 2.68% | |
| | | 2.21% | | | | | | 2.40% | | | | | | 2.35% | | | | | | 2.42% | | | | | | 2.49% | |
| | | 36% | | | | | | 32% | | | | | | 16% | | | | | | 27% | | | | | | 18% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
131
Financial highlights
Delaware Tax-Free California Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
132
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 12.49 | | | | | $ | 11.98 | | | | | $ | 12.26 | | | | | $ | 12.60 | | | | | $ | 12.11 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.41 | | | | | | 0.43 | | | | | | 0.43 | | | | | | 0.44 | | | | | | 0.46 | |
| | | (0.20 | ) | | | | | 0.53 | | | | | | (0.28 | ) | | | | | (0.34 | ) | | | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.21 | | | | | | 0.96 | | | | | | 0.15 | | | | | | 0.10 | | | | | | 0.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.41 | ) | | | | | (0.43 | ) | | | | | (0.43 | ) | | | | | (0.44 | ) | | | | | (0.46 | ) |
| | | (0.11 | ) | | | | | (0.02 | ) | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.52 | ) | | | | | (0.45 | ) | | | | | (0.43 | ) | | | | | (0.44 | ) | | | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 12.18 | | | | | $ | 12.49 | | | | | $ | 11.98 | | | | | $ | 12.26 | | | | | $ | 12.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.84% | | | | | | 8.25% | | | | | | 1.26% | | | | | | 0.89% | | | | | | 7.94% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 34,098 | | | | | $ | 44,646 | | | | | $ | 32,953 | | | | | $ | 28,209 | | | | | $ | 17,410 | |
| | | 0.57% | | | | | | 0.57% | | | | | | 0.57% | | | | | | 0.57% | | | | | | 0.57% | |
| | | 0.78% | | | | | | 0.78% | | | | | | 0.77% | | | | | | 0.76% | | | | | | 0.76% | |
| | | 3.42% | | | | | | 3.61% | | | | | | 3.55% | | | | | | 3.61% | | | | | | 3.68% | |
| | | 3.21% | | | | | | 3.40% | | | | | | 3.35% | | | | | | 3.42% | | | | | | 3.49% | |
| | | 36% | | | | | | 32% | | | | | | 16% | | | | | | 27% | | | | | | 18% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
133
Financial highlights
Delaware Tax-Free Colorado Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of expenses to average net assets prior to fees waived3 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
134
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year ended | | | | | | | | | | | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.48 | | | | | $ | 11.04 | | | | | $ | 11.28 | | | | | $ | 11.65 | | | | | $ | 11.24 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.33 | | | | | | 0.37 | | | | | | 0.37 | | | | | | 0.39 | | | | | | 0.40 | |
| | | (0.12 | ) | | | | | 0.44 | | | | | | (0.24 | ) | | | | | (0.37 | ) | | | | | 0.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.21 | | | | | | 0.81 | | | | | | 0.13 | | | | | | 0.02 | | | | | | 0.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.33 | ) | | | | | (0.37 | ) | | | | | (0.37 | ) | | | | | (0.39 | ) | | | | | (0.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.33 | ) | | | | | (0.37 | ) | | | | | (0.37 | ) | | | | | (0.39 | ) | | | | | (0.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.36 | | | | | $ | 11.48 | | | | | $ | 11.04 | | | | | $ | 11.28 | | | | | $ | 11.65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.88% | | | | | | 7.48% | | | | | | 1.22% | | | | | | 0.26% | | | | | | 7.33% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 162,955 | | | | | $ | 167,136 | | | | | $ | 164,087 | | | | | $ | 165,554 | | | | | $ | 182,764 | |
| | | 0.84% | | | | | | 0.84% | | | | | | 0.84% | | | | | | 0.84% | | | | | | 0.84% | |
| | | 0.96% | | | | | | 0.97% | | | | | | 0.97% | | | | | | 0.96% | | | | | | 0.96% | |
| | | 2.91% | | | | | | 3.31% | | | | | | 3.36% | | | | | | 3.48% | | | | | | 3.50% | |
| | | 2.79% | | | | | | 3.18% | | | | | | 3.23% | | | | | | 3.36% | | | | | | 3.38% | |
| | | 18% | | | | | | 16% | | | | | | 6% | | | | | | 17% | | | | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
135
Financial highlights
Delaware Tax-Free Colorado Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of expenses to average net assets prior to fees waived3 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
136
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.51 | | | | | $ | 11.07 | | | | | $ | 11.31 | | | | | $ | 11.68 | | | | | $ | 11.27 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.24 | | | | | | 0.29 | | | | | | 0.29 | | | | | | 0.31 | | | | | | 0.32 | |
| | | (0.12 | ) | | | | | 0.44 | | | | | | (0.24 | ) | | | | | (0.37 | ) | | | | | 0.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.12 | | | | | | 0.73 | | | | | | 0.05 | | | | | | (0.06 | ) | | | | | 0.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.24 | ) | | | | | (0.29 | ) | | | | | (0.29 | ) | | | | | (0.31 | ) | | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.24 | ) | | | | | (0.29 | ) | | | | | (0.29 | ) | | | | | (0.31 | ) | | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.39 | | | | | $ | 11.51 | | | | | $ | 11.07 | | | | | $ | 11.31 | | | | | $ | 11.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.12% | | | | | | 6.67% | | | | | | 0.47% | | | | | | (0.48% | ) | | | | | 6.52% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 8,121 | | | | | $ | 10,364 | | | | | $ | 10,923 | | | | | $ | 15,975 | | | | | $ | 16,461 | |
| | | 1.59% | | | | | | 1.59% | | | | | | 1.59% | | | | | | 1.59% | | | | | | 1.59% | |
| | | 1.71% | | | | | | 1.72% | | | | | | 1.72% | | | | | | 1.71% | | | | | | 1.71% | |
| | | 2.16% | | | | | | 2.56% | | | | | | 2.61% | | | | | | 2.73% | | | | | | 2.75% | |
| | | 2.04% | | | | | | 2.43% | | | | | | 2.48% | | | | | | 2.61% | | | | | | 2.63% | |
| | | 18% | | | | | | 16% | | | | | | 6% | | | | | | 17% | | | | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
137
Financial highlights
Delaware Tax-Free Colorado Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of expenses to average net assets prior to fees waived3 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
138
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.48 | | | | | $ | 11.04 | | | | | $ | 11.28 | | | | | $ | 11.65 | | | | | $ | 11.24 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.36 | | | | | | 0.40 | | | | | | 0.40 | | | | | | 0.42 | | | | | | 0.43 | |
| | | (0.12 | ) | | | | | 0.44 | | | | | | (0.24 | ) | | | | | (0.37 | ) | | | | | 0.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.24 | | | | | | 0.84 | | | | | | 0.16 | | | | | | 0.05 | | | | | | 0.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.36 | ) | | | | | (0.40 | ) | | | | | (0.40 | ) | | | | | (0.42 | ) | | | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.36 | ) | | | | | (0.40 | ) | | | | | (0.40 | ) | | | | | (0.42 | ) | | | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.36 | | | | | $ | 11.48 | | | | | $ | 11.04 | | | | | $ | 11.28 | | | | | $ | 11.65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 2.14% | | | | | | 7.74% | | | | | | 1.47% | | | | | | 0.51% | | | | | | 7.60% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 51,941 | | | | | $ | 42,317 | | | | | $ | 27,433 | | | | | $ | 19,788 | | | | | $ | 12,211 | |
| | | 0.59% | | | | | | 0.59% | | | | | | 0.59% | | | | | | 0.59% | | | | | | 0.59% | |
| | | 0.71% | | | | | | 0.72% | | | | | | 0.72% | | | | | | 0.71% | | | | | | 0.71% | |
| | | 3.16% | | | | | | 3.56% | | | | | | 3.61% | | | | | | 3.73% | | | | | | 3.75% | |
| | | 3.04% | | | | | | 3.43% | | | | | | 3.48% | | | | | | 3.61% | | | | | | 3.63% | |
| | | 18% | | | | | | 16% | | | | | | 6% | | | | | | 17% | | | | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
139
Financial highlights
Delaware Tax-Free Idaho Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of expenses to average net assets prior to fees waived3 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
140
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.65 | | | | | $ | 11.21 | | | | | $ | 11.49 | | | | | $ | 11.79 | | | | | $ | 11.51 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.33 | | | | | | 0.35 | | | | | | 0.34 | | | | | | 0.35 | | | | | | 0.36 | |
| | | (0.13 | ) | | | | | 0.44 | | | | | | (0.28 | ) | | | | | (0.30 | ) | | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.20 | | | | | | 0.79 | | | | | | 0.06 | | | | | | 0.05 | | | | | | 0.64 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.33 | ) | | | | | (0.35 | ) | | | | | (0.34 | ) | | | | | (0.35 | ) | | | | | (0.36 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.33 | ) | | | | | (0.35 | ) | | | | | (0.34 | ) | | | | | (0.35 | ) | | | | | (0.36 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.52 | | | | | $ | 11.65 | | | | | $ | 11.21 | | | | | $ | 11.49 | | | | | $ | 11.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.77% | | | | | | 7.19% | | | | | | 0.56% | | | | | | 0.47% | | | | | | 5.66% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 60,667 | | | | | $ | 55,480 | | | | | $ | 59,425 | | | | | $ | 67,907 | | | | | $ | 70,306 | |
| | | 0.86% | | | | | | 0.86% | | | | | | 0.86% | | | | | | 0.86% | | | | | | 0.86% | |
| | | 1.02% | | | | | | 1.03% | | | | | | 1.01% | | | | | | 1.00% | | | | | | 0.99% | |
| | | 2.87% | | | | | | 3.11% | | | | | | 3.04% | | | | | | 3.03% | | | | | | 3.11% | |
| | | 2.71% | | | | | | 2.94% | | | | | | 2.89% | | | | | | 2.89% | | | | | | 2.98% | |
| | | 22% | | | | | | 14% | | | | | | 11% | | | | | | 10% | | | | | | 11% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
141
Financial highlights
Delaware Tax-Free Idaho Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
|
|
Less dividends and distributions from: |
|
Net investment income |
|
Total dividends and distributions |
|
|
Net asset value, end of period |
|
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of expenses to average net assets prior to fees waived3 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
142
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.64 | | | | | $ | 11.20 | | | | | $ | 11.48 | | | | | $ | 11.78 | | | | | $ | 11.50 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.24 | | | | | | 0.27 | | | | | | 0.26 | | | | | | 0.26 | | | | | | 0.27 | |
| | | (0.13 | ) | | | | | 0.44 | | | | | | (0.28 | ) | | | | | (0.30 | ) | | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.11 | | | | | | 0.71 | | | | | | (0.02 | ) | | | | | (0.04 | ) | | | | | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.24 | ) | | | | | (0.27 | ) | | | | | (0.26 | ) | | | | | (0.26 | ) | | | | | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.24 | ) | | | | | (0.27 | ) | | | | | (0.26 | ) | | | | | (0.26 | ) | | | | | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.51 | | | | | $ | 11.64 | | | | | $ | 11.20 | | | | | $ | 11.48 | | | | | $ | 11.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.00% | | | | | | 6.40% | | | | | | (0.19% | ) | | | | | (0.29% | ) | | | | | 4.88% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 8,819 | | | | | $ | 12,875 | | | | | $ | 17,597 | | | | | $ | 29,375 | | | | | $ | 30,834 | |
| | | 1.61% | | | | | | 1.61% | | | | | | 1.61% | | | | | | 1.61% | | | | | | 1.61% | |
| | | 1.77% | | | | | | 1.78% | | | | | | 1.76% | | | | | | 1.75% | | | | | | 1.74% | |
| | | 2.12% | | | | | | 2.36% | | | | | | 2.29% | | | | | | 2.28% | | | | | | 2.36% | |
| | | 1.96% | | | | | | 2.19% | | | | | | 2.14% | | | | | | 2.14% | | | | | | 2.23% | |
| | | 22% | | | | | | 14% | | | | | | 11% | | | | | | 10% | | | | | | 11% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
143
Financial highlights
Delaware Tax-Free Idaho Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets3 |
Ratio of expenses to average net assets prior to fees waived3 |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
144
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.65 | | | | | $ | 11.21 | | | | | $ | 11.49 | | | | | $ | 11.79 | | | | | $ | 11.51 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.36 | | | | | | 0.38 | | | | | | 0.37 | | | | | | 0.37 | | | | | | 0.39 | |
| | | (0.13 | ) | | | | | 0.44 | | | | | | (0.28 | ) | | | | | (0.29 | ) | | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.23 | | | | | | 0.82 | | | | | | 0.09 | | | | | | 0.08 | | | | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.36 | ) | | | | | (0.38 | ) | | | | | (0.37 | ) | | | | | (0.38 | ) | | | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.36 | ) | | | | | (0.38 | ) | | | | | (0.37 | ) | | | | | (0.38 | ) | | | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.52 | | | | | $ | 11.65 | | | | | $ | 11.21 | | | | | $ | 11.49 | | | | | $ | 11.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 2.02% | | | | | | 7.46% | | | | | | 0.82% | | | | | | 0.71% | | | | | | 5.92% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 36,057 | | | | | $ | 35,157 | | | | | $ | 21,310 | | | | | $ | 12,090 | | | | | $ | 10,248 | |
| | | 0.61% | | | | | | 0.61% | | | | | | 0.61% | | | | | | 0.61% | | | | | | 0.61% | |
| | | 0.77% | | | | | | 0.78% | | | | | | 0.76% | | | | | | 0.75% | | | | | | 0.74% | |
| | | 3.12% | | | | | | 3.36% | | | | | | 3.29% | | | | | | 3.28% | | | | | | 3.36% | |
| | | 2.96% | | | | | | 3.19% | | | | | | 3.14% | | | | | | 3.14% | | | | | | 3.23% | |
| | | 22% | | | | | | 14% | | | | | | 11% | | | | | | 10% | | | | | | 11% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
145
Financial highlights
Delaware Tax-Free New York Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
146
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.86 | | | | | $ | 11.33 | | | | | $ | 11.62 | | | | | $ | 11.98 | | | | | $ | 11.48 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.33 | | | | | | 0.36 | | | | | | 0.36 | | | | | | 0.35 | | | | | | 0.36 | |
| | | (0.14 | ) | | | | | 0.53 | | | | | | (0.29 | ) | | | | | (0.35 | ) | | | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.19 | | | | | | 0.89 | | | | | | 0.07 | | | | | | — | 2 | | | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.33 | ) | | | | | (0.36 | ) | | | | | (0.36 | ) | | | | | (0.36 | ) | | | | | (0.36 | ) |
| | | (0.06 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.39 | ) | | | | | (0.36 | ) | | | | | (0.36 | ) | | | | | (0.36 | ) | | | | | (0.36 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.66 | | | | | $ | 11.86 | | | | | $ | 11.33 | | | | | $ | 11.62 | | | | | $ | 11.98 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.68% | | | | | | 8.00% | | | | | | 0.60% | | | | | | 0.05% | | | | | | 7.57% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 42,514 | | | | | $ | 36,058 | | | | | $ | 38,139 | | | | | $ | 40,647 | | | | | $ | 55,418 | |
| | | 0.80% | | | | | | 0.80% | | | | | | 0.80% | | | | | | 0.80% | | | | | | 0.80% | |
| | | 1.05% | | | | | | 1.07% | | | | | | 1.08% | | | | | | 1.03% | | | | | | 1.02% | |
| | | 2.86% | | | | | | 3.12% | | | | | | 3.10% | | | | | | 3.04% | | | | | | 3.06% | |
| | | 2.61% | | | | | | 2.85% | | | | | | 2.82% | | | | | | 2.81% | | | | | | 2.84% | |
| | | 31% | | | | | | 21% | | | | | | 10% | | | | | | 14% | | | | | | 8% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
147
Financial highlights
Delaware Tax-Free New York Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
|
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
148
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| |
| | | Year ended | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 11.83 | | | | | $ | 11.30 | | | | | $ | 11.59 | | | | | $ | 11.95 | | | | | $ | 11.45 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.24 | | | | | | 0.27 | | | | | | 0.27 | | | | | | 0.26 | | | | | | 0.27 | |
| | | (0.14 | ) | | | | | 0.53 | | | | | | (0.29 | ) | | | | | (0.35 | ) | | | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.10 | | | | | | 0.80 | | | | | | (0.02 | ) | | | | | (0.09 | ) | | | | | 0.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.24 | ) | | | | | (0.27 | ) | | | | | (0.27 | ) | | | | | (0.27 | ) | | | | | (0.27 | ) |
| | | (0.06 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.30 | ) | | | | | (0.27 | ) | | | | | (0.27 | ) | | | | | (0.27 | ) | | | | | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.63 | | | | | $ | 11.83 | | | | | $ | 11.30 | | | | | $ | 11.59 | | | | | $ | 11.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 0.92% | | | | | | 7.20% | | | | | | (0.16% | ) | | | | | (0.71% | ) | | | | | 6.78% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 7,037 | | | | | $ | 13,459 | | | | | $ | 14,941 | | | | | $ | 17,073 | | | | | $ | 20,899 | |
| | | 1.55% | | | | | | 1.55% | | | | | | 1.55% | | | | | | 1.55% | | | | | | 1.55% | |
| | | 1.80% | | | | | | 1.82% | | | | | | 1.83% | | | | | | 1.78% | | | | | | 1.77% | |
| | | 2.11% | | | | | | 2.37% | | | | | | 2.35% | | | | | | 2.29% | | | | | | 2.31% | |
| | | 1.86% | | | | | | 2.10% | | | | | | 2.07% | | | | | | 2.06% | | | | | | 2.09% | |
| | | 31% | | | | | | 21% | | | | | | 10% | | | | | | 14% | | | | | | 8% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
149
Financial highlights
Delaware Tax-Free New York Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
150
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | | $ | 11.85 | | | | | $ | 11.33 | | | | | $ | 11.61 | | | | | $ | 11.97 | | | | | $ | 11.47 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.36 | | | | | | 0.38 | | | | | | 0.39 | | | | | | 0.38 | | | | | | 0.39 | |
| | | (0.13 | ) | | | | | 0.52 | | | | | | (0.28 | ) | | | | | (0.35 | ) | | | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.23 | | | | | | 0.90 | | | | | | 0.11 | | | | | | 0.03 | | | | | | 0.89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.36 | ) | | | | | (0.38 | ) | | | | | (0.39 | ) | | | | | (0.39 | ) | | | | | (0.39 | ) |
| | | (0.06 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.42 | ) | | | | | (0.38 | ) | | | | | (0.39 | ) | | | | | (0.39 | ) | | | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 11.66 | | | | | $ | 11.85 | | | | | $ | 11.33 | | | | | $ | 11.61 | | | | | $ | 11.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 2.03% | | | | | | 8.17% | | | | | | 0.93% | | | | | | 0.29% | | | | | | 7.84% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 38,394 | | | | | $ | 39,363 | | | | | $ | 32,981 | | | | | $ | 32,192 | | | | | $ | 19,929 | |
| | | 0.55% | | | | | | 0.55% | | | | | | 0.55% | | | | | | 0.55% | | | | | | 0.55% | |
| | | 0.80% | | | | | | 0.82% | | | | | | 0.83% | | | | | | 0.78% | | | | | | 0.77% | |
| | | 3.11% | | | | | | 3.37% | | | | | | 3.35% | | | | | | 3.29% | | | | | | 3.31% | |
| | | 2.86% | | | | | | 3.10% | | | | | | 3.07% | | | | | | 3.06% | | | | | | 3.09% | |
| | | 31% | | | | | | 21% | | | | | | 10% | | | | | | 14% | | | | | | 8% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
151
Financial highlights
Delaware Tax-Free Pennsylvania Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
152
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | | $ | 8.25 | | | | | $ | 7.93 | | | | | $ | 8.14 | | | | | $ | 8.39 | | | | | $ | 8.15 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.25 | | | | | | 0.28 | | | | | | 0.28 | | | | | | 0.28 | | | | | | 0.29 | |
| | | (0.11 | ) | | | | | 0.32 | | | | | | (0.20 | ) | | | | | (0.25 | ) | | | | | 0.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.14 | | | | | | 0.60 | | | | | | 0.08 | | | | | | 0.03 | | | | | | 0.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.25 | ) | | | | | (0.28 | ) | | | | | (0.28 | ) | | | | | (0.28 | ) | | | | | (0.29 | ) |
| | | (0.08 | ) | | | | | — | | | | | | (0.01 | ) | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.33 | ) | | | | | (0.28 | ) | | | | | (0.29 | ) | | | | | (0.28 | ) | | | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 8.06 | | | | | $ | 8.25 | | | | | $ | 7.93 | | | | | $ | 8.14 | | | | | $ | 8.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.72% | | | | | | 7.72% | | | | | | 0.93% | | | | | | 0.48% | | | | | | 6.60% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 364,480 | | | | | $ | 376,965 | | | | | $ | 378,038 | | | | | $ | 399,001 | | | | | $ | 439,379 | |
| | | 0.83% | | | | | | 0.85% | | | | | | 0.88% | | | | | | 0.88% | | | | | | 0.88% | |
| | | 0.92% | | | | | | 0.93% | | | | | | 0.93% | | | | | | 0.94% | | | | | | 0.94% | |
| | | 3.09% | | | | | | 3.49% | | | | | | 3.48% | | | | | | 3.51% | | | | | | 3.50% | |
| | | 3.00% | | | | | | 3.41% | | | | | | 3.43% | | | | | | 3.45% | | | | | | 3.44% | |
| | | 40% | | | | | | 23% | | | | | | 19% | | | | | | 15% | | | | | | 14% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
153
Financial highlights
Delaware Tax-Free Pennsylvania Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
154
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Year ended | |
| | |
| | | | | | | | |
| | | | | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| | |
| | | | | | | $ | 8.25 | | | | | $ | 7.93 | | | | | $ | 8.14 | | | | | $ | 8.39 | | | | | $ | 8.15 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 0.19 | | | | | | 0.22 | | | | | | 0.22 | | | | | | 0.22 | | | | | | 0.23 | |
| | | | | | | (0.11 | ) | | | | | 0.32 | | | | | | (0.20 | ) | | | | | (0.25 | ) | | | | | 0.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 0.08 | | | | | | 0.54 | | | | | | 0.02 | | | | | | (0.03 | ) | | | | | 0.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | (0.19 | ) | | | | | (0.22 | ) | | | | | (0.22 | ) | | | | | (0.22 | ) | | | | | (0.23 | ) |
| | | | | | | (0.08 | ) | | | | | — | | | | | | (0.01 | ) | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | (0.27 | ) | | | | | (0.22 | ) | | | | | (0.23 | ) | | | | | (0.22 | ) | | | | | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | $ | 8.06 | | | | | $ | 8.25 | | | | | $ | 7.93 | | | | | $ | 8.14 | | | | | $ | 8.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | 0.95% | | | | | | 6.91% | | | | | | 0.16% | | | | | | (0.27% | ) | | | | | 5.79% | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | $ | 19,009 | | | | | $ | 25,065 | | | | | $ | 26,376 | | | | | $ | 33,298 | | | | | $ | 36,215 | |
| | | | | | | 1.59% | | | | | | 1.61% | | | | | | 1.64% | | | | | | 1.64% | | | | | | 1.64% | |
| | | | | | | 1.68% | | | | | | 1.69% | | | | | | 1.69% | | | | | | 1.70% | | | | | | 1.70% | |
| | | | | | | 2.33% | | | | | | 2.73% | | | | | | 2.72% | | | | | | 2.75% | | | | | | 2.74% | |
| | | | | | | 2.24% | | | | | | 2.65% | | | | | | 2.67% | | | | | | 2.69% | | | | | | 2.68% | |
| | | | | | | 40% | | | | | | 23% | | | | | | 19% | | | | | | 15% | | | | | | 14% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | |
155
Financial highlights
Delaware Tax-Free Pennsylvania Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
| |
|
|
| |
|
|
Net asset value, beginning of period |
|
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
| |
Total from investment operations |
| |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
| |
Total dividends and distributions |
| |
|
Net asset value, end of period |
| |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
|
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
156
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Year ended | |
| |
| | | | |
| | | 8/31/20 | | | | | 8/31/19 | | | | | 8/31/18 | | | | | 8/31/17 | | | | | 8/31/16 | |
|
| |
| | $ | 8.25 | | | | | $ | 7.92 | | | | | $ | 8.13 | | | | | $ | 8.38 | | | | | $ | 8.14 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.27 | | | | | | 0.30 | | | | | | 0.30 | | | | | | 0.30 | | | | | | 0.31 | |
| | | (0.12 | ) | | | | | 0.33 | | | | | | (0.20 | ) | | | | | (0.25 | ) | | | | | 0.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0.15 | | | | | | 0.63 | | | | | | 0.10 | | | | | | 0.05 | | | | | | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.27 | ) | | | | | (0.30 | ) | | | | | (0.30 | ) | | | | | (0.30 | ) | | | | | (0.31 | ) |
| | | (0.08 | ) | | | | | — | | | | | | (0.01 | ) | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (0.35 | ) | | | | | (0.30 | ) | | | | | (0.31 | ) | | | | | (0.30 | ) | | | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | $ | 8.05 | | | | | $ | 8.25 | | | | | $ | 7.92 | | | | | $ | 8.13 | | | | | $ | 8.38 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | 1.84% | | | | | | 8.12% | | | | | | 1.16% | | | | | | 0.73% | | | | | | 6.86% | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 55,919 | | | | | $ | 47,241 | | | | | $ | 41,427 | | | | | $ | 33,373 | | | | | $ | 26,372 | |
| | | 0.59% | | | | | | 0.61% | | | | | | 0.64% | | | | | | 0.64% | | | | | | 0.64% | |
| | | 0.68% | | | | | | 0.69% | | | | | | 0.69% | | | | | | 0.70% | | | | | | 0.70% | |
| | | 3.33% | | | | | | 3.73% | | | | | | 3.72% | | | | | | 3.75% | | | | | | 3.74% | |
| | | 3.24% | | | | | | 3.65% | | | | | | 3.67% | | | | | | 3.69% | | | | | | 3.68% | |
| | | 40% | | | | | | 23% | | | | | | 19% | | | | | | 15% | | | | | | 14% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
157
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | August 31, 2020 |
Voyageur Insured Funds is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Arizona Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund. Voyageur Mutual Funds II is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Colorado Fund. Delaware Group® State Tax-Free Income Trust is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Pennsylvania Fund. Voyageur Insured Funds, Voyageur Mutual Funds, Voyageur Mutual Funds II, and Delaware Group State Tax-Free Income Trust are each referred to as a Trust, or collectively as the Trusts. These financial statements and the related notes pertain to Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund (each a Fund, or together, the Funds). Each Trust is an open-end investment company. Each Fund is considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offers Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 4.50%. Class A share purchases of $1,000,000 or more for Delaware Tax-Free California Fund and Delaware Tax-Free New York Fund and $250,000 or more for Delaware Tax-Free Arizona Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free Pennsylvania Fund, will incur a contingent deferred sales charge (CDSC) instead of a front-end sales charge of 1.00%, if redeemed during the first year, and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class C shares are sold with a CDSC of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Open-end investment companies are valued at their published net asset value (NAV). Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.
158
Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the year ended August 31, 2020 and for all open tax years (years ended August 31, 2017–August 31, 2019), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the year ended August 31, 2020, the Funds did not incur any interest or tax penalties.
Class Accounting — Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included
159
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
1. Significant Accounting Policies (continued)
under “Less expenses paid indirectly.” For the year ended August 31, 2020, each Fund earned the following amounts under this arrangement:
| | | | | |
Fund | | Custody Credits |
Delaware Tax-Free Arizona Fund | | | $ | 828 | |
Delaware Tax-Free California Fund | | | | 1,099 | |
Delaware Tax-Free Colorado Fund | | | | 392 | |
Delaware Tax-Free Idaho Fund | | | | 505 | |
Delaware Tax-Free New York Fund | | | | 1,015 | |
Delaware Tax-Free Pennsylvania Fund | | | | 1,549 | |
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the year ended August 31, 2020, each Fund earned the following amounts under this arrangement:
| | | | | |
Fund | | Earnings Credits |
Delaware Tax-Free Arizona Fund | | | $ | 43 | |
Delaware Tax-Free California Fund | | | | 32 | |
Delaware Tax-Free Colorado Fund | | | | 140 | |
Delaware Tax-Free Idaho Fund | | | | 62 | |
Delaware Tax-Free New York Fund | | | | 42 | |
Delaware Tax-Free Pennsylvania Fund | | | | 377 | |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware
Tax-Free
Arizona
Fund | | Delaware
Tax-Free
California
Fund | | Delaware
Tax-Free
Colorado
Fund | | Delaware
Tax-Free
Idaho Fund | | Delaware
Tax-Free
New York
Fund | | Delaware
Tax-Free
Pennsylvania
Fund |
On the first $500 million | | | | 0.5000% | | | | | 0.5500% | | | | | 0.5500% | | | | | 0.5500% | | | | | 0.5500% | | | | | 0.5500% | |
On the next $500 million | | | | 0.4750% | | | | | 0.5000% | | | | | 0.5000% | | | | | 0.5000% | | | | | 0.5000% | | | | | 0.5000% | |
On the next $1.5 billion | | | | 0.4500% | | | | | 0.4500% | | | | | 0.4500% | | | | | 0.4500% | | | | | 0.4500% | | | | | 0.4500% | |
In the excess of $2.5 billion | | | | 0.4250% | | | | | 0.4250% | | | | | 0.4250% | | | | | 0.4250% | | | | | 0.4250% | | | | | 0.4250% | |
DMC has contractually agreed to waive all or a portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure total annual operating expenses (excluding any distribution and service (12b-1) fees, acquired fund fees and expenses, taxes, interest, inverse floater
160
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), do not exceed the following percentage of each Fund’s average daily net assets from September 1, 2019 through August 31, 2020.* These expense waivers and reimbursements may be terminated only by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
| | | | | |
Fund | | Operating expense
limitation as
a percentage
of average
daily net assets |
Delaware Tax-Free Arizona Fund | | | | 0.59% | |
Delaware Tax-Free California Fund | | | | 0.57% | |
Delaware Tax-Free Colorado Fund | | | | 0.59% | |
Delaware Tax-Free Idaho Fund | | | | 0.61% | |
Delaware Tax-Free New York Fund | | | | 0.55% | |
Delaware Tax-Free Pennsylvania Fund | | | | 0.59% | |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative NAV basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the year ended August 31, 2020, each Fund was charged for these services as follows:
| | | | |
Fund | | Fees | |
Delaware Tax-Free Arizona Fund | | $ | 6,716 | |
Delaware Tax-Free California Fund | | | 7,178 | |
Delaware Tax-Free Colorado Fund | | | 11,601 | |
Delaware Tax-Free Idaho Fund | | | 7,598 | |
Delaware Tax-Free New York Fund | | | 7,007 | |
Delaware Tax-Free Pennsylvania Fund | | | 19,104 | |
DIFSC is also the transfer agent and dividend disbursing agent of each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; and 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend
161
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
disbursing and transfer agent fees and expenses.” For the year ended August 31, 2020, each Fund was charged for these services as follows:
| | | | |
Fund | | Fees | |
Delaware Tax-Free Arizona Fund | | $ | 7,298 | |
Delaware Tax-Free California Fund | | | 8,522 | |
Delaware Tax-Free Colorado Fund | | | 20,439 | |
Delaware Tax-Free Idaho Fund | | | 9,666 | |
Delaware Tax-Free New York Fund | | | 8,081 | |
Delaware Tax-Free Pennsylvania Fund | | | 40,615 | |
Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to the Funds. Sub-transfer agency fees are paid by the Funds and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual 12b-1 fee of 0.25% of the average daily net assets of the Class A shares (except for Delaware Tax-Free Pennsylvania Fund). The Board for Delaware Tax-Free Pennsylvania Fund has adopted a formula for calculating 12b-1 fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All of the Fund’s Class A shareholders bear 12b-1 fees at the same blended rate, currently 0.24% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Each Fund pays 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay 12b-1 fees.
162
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to the Funds. These amounts are included on the “Statements of operations” under “Legal fees.” For the year ended August 31, 2020, each Fund was charged for internal legal, tax, and regulatory services provided by DMC and/or its affiliates’ employees as follows:
| | | | |
Fund | | Fees | |
Delaware Tax-Free Arizona Fund | | $ | 2,478 | |
Delaware Tax-Free California Fund | | | 2,865 | |
Delaware Tax-Free Colorado Fund | | | 6,649 | |
Delaware Tax-Free Idaho Fund | | | 3,231 | |
Delaware Tax-Free New York Fund | | | 2,731 | |
Delaware Tax-Free Pennsylvania Fund | | | 13,036 | |
For the year ended August 31, 2020, DDLP earned commissions on sales of Class A shares for each Fund as follows:
| | | | | |
Fund | | Commissions |
Delaware Tax-Free Arizona Fund | | | $ | 2,660 | |
Delaware Tax-Free California Fund | | | | 1,741 | |
Delaware Tax-Free Colorado Fund | | | | 8,962 | |
Delaware Tax-Free Idaho Fund | | | | 13,935 | |
Delaware Tax-Free New York Fund | | | | 1,771 | |
Delaware Tax-Free Pennsylvania Fund | | | | 22,943 | |
For the year ended August 31, 2020, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
| | | | | | | | |
Fund | | Class A | | | Class C | |
Delaware Tax-Free Arizona Fund | | $ | — | | | $ | 196 | |
Delaware Tax-Free Colorado Fund | | | 27,501 | | | | — | |
Delaware Tax-Free Idaho Fund | | | — | | | | 1,311 | |
Delaware Tax-Free Pennsylvania Fund | | | — | | | | 340 | |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
163
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Cross trades for the year ended August 31, 2020, were executed by the Funds pursuant to procedures adopted by the Boards designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review such transactions for compliance with the procedures adopted by the Boards. Pursuant to these procedures, for the year ended August 31, 2020, the following Funds engaged in Rule 17a-7 securities purchases and securities sales, as follows:
| | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Net realized gain (loss) |
Delaware Tax-Free Arizona Fund | | | $ | 5,672,581 | | | | $ | 7,401,587 | | | | $ | (334,007 | ) |
Delaware Tax-Free California Fund | | | | 4,900,461 | | | | | 6,876,211 | | | | | (62,680 | ) |
Delaware Tax-Free Colorado Fund | | | | 4,235,550 | | | | | 5,020,730 | | | | | (140,579 | ) |
Delaware Tax-Free Idaho Fund | | | | 2,508,965 | | | | | 2,299,859 | | | | | (45,199 | ) |
Delaware Tax-Free New York Fund | | | | 5,501,167 | | | | | 3,275,482 | | | | | (80,388 | ) |
Delaware Tax-Free Pennsylvania Fund | | | | 33,376,235 | | | | | 42,425,659 | | | | | (3,016,448 | ) |
In addition to the management fees and other expenses of a Fund, a Fund indirectly bears the investment management fees and other expenses of the investment companies (Underlying Funds) in which it invests. The amount of these fees and expenses incurred indirectly by a Fund will vary based upon the expense and fee levels of the Underlying Funds and the number of shares that are owned of the Underlying Funds at different times.
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
3. Investments
For the year ended August 31, 2020, each Fund made purchases and sales of investment securities other than short-term investments as follows:
| | | | | | | | |
Fund | | Purchases | | | Sales | |
Delaware Tax-Free Arizona Fund | | $ | 29,041,721 | | | $ | 28,008,486 | |
Delaware Tax-Free California Fund | | | 32,756,713 | | | | 47,163,370 | |
Delaware Tax-Free Colorado Fund | | | 39,570,833 | | | | 40,253,358 | |
Delaware Tax-Free Idaho Fund | | | 25,573,608 | | | | 22,545,917 | |
Delaware Tax-Free New York Fund | | | 27,040,439 | | | | 26,419,878 | |
Delaware Tax-Free Pennsylvania Fund | | | 174,670,498 | | | | 180,230,327 | |
164
The tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be the final tax cost basis adjustments, but approximates the tax basis unrealized gains and losses that may be realized and distributed to shareholders. At August 31, 2020, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes for each Fund were as follows:
| | | | | | | | | | | | | | | | |
Fund | | Cost of
investments | | | Aggregate
unrealized
appreciation
of investments | | | Aggregate
unrealized
depreciation
of investments | | | Net unrealized
appreciation
of investments | |
Delaware Tax-Free Arizona Fund | | $ | 75,015,204 | | | $ | 4,513,289 | | | $ | (389,461) | | | $ | 4,123,828 | |
Delaware Tax-Free California Fund | | | 78,256,202 | | | | 5,475,124 | | | | (424,919) | | | | 5,050,205 | |
Delaware Tax-Free Colorado Fund | | | 209,484,826 | | | | 12,666,262 | | | | (1,092,291) | | | | 11,573,971 | |
Delaware Tax-Free Idaho Fund | | | 99,525,434 | | | | 5,574,001 | | | | (622,964) | | | | 4,951,037 | |
Delaware Tax-Free New York Fund | | | 83,427,027 | | | | 4,303,197 | | | | (625,245) | | | | 3,677,952 | |
Delaware Tax-Free Pennsylvania Fund | | | 409,118,762 | | | | 27,355,753 | | | | (2,107,074) | | | | 25,248,679 | |
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
| | |
| Level 1 – | | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
| |
| Level 2 – | | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt |
165
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
3. Investments (continued)
| | |
| | securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) |
| |
| Level 3 – | | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of August 31, 2020:
| | | | | |
| | | Delaware Tax-Free Arizona Fund |
| | | Level 2 |
Securities | | | | | |
| |
Assets: | | | | | |
Municipal Bonds | | | | $78,139,032 | |
Short-Term Investments | | | | 1,000,000 | |
| | | | | |
Total Value of Securities | | | | $79,139,032 | |
| | | | | |
| | | | | |
| | | Delaware Tax-Free California Fund |
| | | Level 2 |
Securities | | | | | |
| |
Assets: | | | | | |
Municipal Bonds | | | | $82,356,407 | |
Short-Term Investments | | | | 950,000 | |
| | | | | |
Total Value of Securities | | | | $83,306,407 | |
| | | | | |
| | | | | | | | | | | | |
| | | Delaware Tax-Free Colorado Fund | |
| | | Level 1 | | | Level 2 | | | Total | |
Securities | | | | | | | | | | | | |
| | | |
Assets: | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | $ | 219,905,214 | | | $ | 219,905,214 | |
Short-Term Investments1 | | | 653,583 | | | | 500,000 | | | | 1,153,583 | |
| | | | | | | | | | | | |
Total Value of Securities | | $ | 653,583 | | | $ | 220,405,214 | | | $ | 221,058,797 | |
| | | | | | | | | | | | |
166
| | | | | | | | | | | | |
| | | Delaware Tax-Free Idaho Fund | |
| | | |
| | | Level 1 | | | Level 2 | | | Total | |
Securities | | | | | | | | | | | | |
| | | |
Assets: | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | $ | 102,534,982 | | | $ | 102,534,982 | |
Short-Term Investments1 | | | 1,516,489 | | | | 425,000 | | | | 1,941,489 | |
| | | | | | | | | | | | |
Total Value of Securities | | $ | 1,516,489 | | | $ | 102,959,982 | | | $ | 104,476,471 | |
| | | | | |
| | | Delaware Tax-Free New York Fund |
| |
| | | Level 2 |
Securities | | | | | |
| |
Assets: | | | | | |
Municipal Bonds | | | | $86,704,979 | |
Short-Term Investments | | | | 400,000 | |
| | | | | |
Total Value of Securities | | | | $87,104,979 | |
| | | | | |
| | | | | |
| | | Delaware Tax-Free Pennsylvania Fund |
| |
| | | Level 2 |
Securities | | | | | |
| |
Assets: | | | | | |
Municipal Bonds | | | | $432,822,441 | |
Short-Term Investments | | | | 1,545,000 | |
| | | | | |
Total Value of Securities | | | | $434,367,441 | |
| | | | | |
| 1 | Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments, Level 2 investments represent investments with observable inputs or matrix-priced investments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments, Level 2 investments, and Level 3 investments represent the following percentages of the total market value of these security types: |
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Colorado Fund | |
| | | |
| | | Level 1 | | | Level 2 | | | Total | |
Short-Term Investments | | | 56.66 | % | | | 43.34 | % | | | 100.00 | % |
| | | | | | | | | | | | |
| | | Delaware Tax-Free
Idaho Fund | |
| | | |
| | | Level 1 | | | Level 2 | | | Total | |
Short-Term Investments | | | 78.11 | % | | | 21.89 | % | | | 100.00 | % |
During the year ended August 31, 2020, there were no transfers into or out of Level 3 investments. Each Fund’s policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting period.
167
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
3. Investments (continued)
A reconciliation of Level 3 investments is presented when a Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to that Fund’s net assets. During the year ended August 31, 2020, there were no Level 3 investments.
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Additionally, distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended August 31, 2020 and 2019 was as follows:
| | | | | | | | | | | | | | | | |
| | | Tax-exempt
income | | | Ordinary
income | | | Long-term
capital
gains | | | Total | |
Year ended August 31, 2020: | | | | | | | | | | | | | | | | |
Delaware Tax-Free Arizona Fund | | $ | 2,294,008 | | | $ | 132,819 | | | $ | — | | | $ | 2,426,827 | |
Delaware Tax-Free California Fund | | | 2,942,472 | | | | 328,078 | | | | 577,094 | | | | 3,847,644 | |
Delaware Tax-Free Colorado Fund | | | 6,470,990 | | | | 947 | | | | — | | | | 6,471,937 | |
Delaware Tax-Free Idaho Fund | | | 3,002,673 | | | | — | | | | — | | | | 3,002,673 | |
Delaware Tax-Free New York Fund | | | 2,498,126 | | | | 291,958 | | | | 147,922 | | | | 2,938,006 | |
Delaware Tax-Free Pennsylvania Fund | | | 13,525,071 | | | | 1,397,137 | | | | 2,715,224 | | | | 17,637,432 | |
| | | | |
Year ended August 31, 2019: | | | | | | | | | | | | | | | | |
Delaware Tax-Free Arizona Fund | | | 2,453,828 | | | | — | | | | — | | | | 2,453,828 | |
Delaware Tax-Free California Fund | | | 3,230,687 | | | | — | | | | 141,274 | | | | 3,371,961 | |
Delaware Tax-Free Colorado Fund | | | 6,757,874 | | | | 909 | | | | — | | | | 6,758,783 | |
Delaware Tax-Free Idaho Fund | | | 3,015,084 | | | | 8 | | | | — | | | | 3,015,092 | |
Delaware Tax-Free New York Fund | | | 2,626,610 | | | | — | | | | — | | | | 2,626,610 | |
Delaware Tax-Free Pennsylvania Fund | | | 15,062,570 | | | | — | | | | — | | | | 15,062,570 | |
168
5. Components of Net Assets on a Tax Basis
As of August 31, 2020, the components of net assets on a tax basis were as follows:
| | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
Arizona Fund | | Delaware Tax-Free
California Fund | | Delaware Tax-Free
Colorado Fund |
Shares of beneficial interest | | | $ | 75,762,289 | | | | $ | 80,243,932 | | | | $ | 213,401,580 | |
Undistributed tax-exempt income | | | | 69,805 | | | | | 65,562 | | | | | 492,759 | |
Undistributed long-term capital gains | | | | — | | | | | — | | | | | — | |
Qualified late year loss deferrals | | | | — | | | | | (318,804 | ) | | | | — | |
Distributions payable | | | | (49,924 | ) | | | | (54,873 | ) | | | | (140,201 | ) |
Capital loss carryforwards | | | | (86,581 | ) | | | | — | | | | | (2,311,032 | ) |
Unrealized appreciation of investments | | | | 4,123,828 | | | | | 5,050,205 | | | | | 11,573,971 | |
| | | | | | | | | | | | | | | |
Net assets | | | $ | 79,819,417 | | | | $ | 84,986,022 | | | | $ | 223,017,077 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
Idaho Fund | | Delaware Tax-Free
New York Fund | | Delaware Tax-Free
Pennsylvania Fund |
Shares of beneficial interest | | | $ | 105,528,187 | | | | $ | 83,950,452 | | | | $ | 414,133,959 | |
Undistributed tax-exempt income | | | | 47,351 | | | | | 53,291 | | | | | 142,880 | |
Undistributed long-term capital gains | | | | — | | | | | 359,294 | | | | | 2,336,190 | |
Qualified late year loss deferrals | | | | — | | | | | (44,037 | ) | | | | (2,160,690 | ) |
Distributions payable | | | | (64,060 | ) | | | | (52,158 | ) | | | | (293,350 | ) |
Capital loss carryforwards | | | | (4,919,795 | ) | | | | — | | | | | — | |
Unrealized appreciation of investments | | | | 4,951,037 | | | | | 3,677,952 | | | | | 25,248,679 | |
| | | | | | | | | | | | | | | |
Net assets | | | $ | 105,542,720 | | | | $ | 87,944,794 | | | | $ | 439,407,668 | |
| | | | | | | | | | | | | | | |
The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of market discount and premium on debt instruments and tax deferral of losses due to wash sales, as applicable.
Qualified late year ordinary and capital losses (including currency and specified gain (loss) items) represent losses realized from January 1, 2020 through August 31, 2020 and November 1, 2019 through August 31, 2020, respectively, that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
169
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
5. Components of Net Assets on a Tax Basis (continued)
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. At August 31, 2020, the Funds utilized capital loss carryforwards as follows:
| | | | |
Delaware Tax-Free Arizona Fund | | | $141,726 | |
Delaware Tax-Free Colorado Fund | | | 887,138 | |
At August 31, 2020, capital loss carryforwards available to offset future realized capital gains, are as follows:
| | | | | | | | | | | | |
| | | Loss carryforward character | | | | |
| | | Short-term | | | Long-term | | | Total | |
Delaware Tax-Free Arizona Fund | | $ | 86,581 | | | $ | — | | | $ | 86,581 | |
Delaware Tax-Free Colorado Fund | | | 2,311,032 | | | | — | | | | 2,311,032 | |
Delaware Tax-Free Idaho Fund | | | 2,504,581 | | | | 2,415,214 | | | | 4,919,795 | |
At August 31, 2020, there were no capital loss carryforwards for Delaware Tax-Free California Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund.
170
6. Capital Shares
Transactions in capital shares were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
Arizona Fund | | | Delaware Tax-Free
California Fund | | | Delaware Tax-Free
Colorado Fund | |
| | | Year ended | | | Year ended | | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/20 | | | 8/31/19 | | | 8/31/20 | | | 8/31/19 | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 349,787 | | | | 262,361 | | | | 798,154 | | | | 246,328 | | | | 1,177,515 | | | | 946,719 | |
Class C | | | 41,794 | | | | 42,564 | | | | 48,347 | | | | 135,650 | | | | 66,422 | | | | 115,864 | |
Institutional Class | | | 372,503 | | | | 589,377 | | | | 1,795,851 | | | | 2,089,874 | | | | 2,117,070 | | | | 1,931,423 | |
| | | | |
Shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | | |
Class A | | | 130,770 | | | | 139,629 | | | | 125,573 | | | | 123,662 | | | | 378,666 | | | | 430,740 | |
Class C | | | 5,131 | | | | 6,385 | | | | 23,216 | | | | 22,436 | | | | 17,390 | | | | 22,232 | |
Institutional Class | | | 41,773 | | | | 34,201 | | | | 105,460 | | | | 78,502 | | | | 123,322 | | | | 92,420 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 941,758 | | | | 1,074,517 | | | | 2,896,601 | | | | 2,696,452 | | | | 3,880,385 | | | | 3,539,398 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (400,570 | ) | | | (735,173 | ) | | | (685,580 | ) | | | (1,431,252 | ) | | | (1,773,322 | ) | | | (1,685,496 | ) |
Class C | | | (90,096 | ) | | | (61,785 | ) | | | (434,992 | ) | | | (319,827 | ) | | | (271,283 | ) | | | (224,664 | ) |
Institutional Class | | | (318,049 | ) | | | (313,916 | ) | | | (2,676,045 | ) | | | (1,346,002 | ) | | | (1,355,362 | ) | | | (823,168 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (808,715 | ) | | | (1,110,874 | ) | | | (3,796,617 | ) | | | (3,097,081 | ) | | | (3,399,967 | ) | | | (2,733,328 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 133,043 | | | | (36,357 | ) | | | (900,016 | ) | | | (400,629 | ) | | | 480,418 | | | | 806,070 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
171
| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
6. Capital Shares (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
Idaho Fund | | | Delaware Tax-Free
New York Fund | | | Delaware Tax-Free
Pennsylvania Fund | |
| | | Year ended | | | Year ended | | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/20 | | | 8/31/19 | | | 8/31/20 | | | 8/31/19 | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 959,882 | | | | 459,129 | | | | 995,411 | | | | 591,017 | | | | 4,314,169 | | | | 3,832,279 | |
Class C | | | 95,887 | | | | 86,983 | | | | 47,380 | | | | 133,092 | | | | 354,617 | | | | 371,898 | |
Institutional Class | | | 1,075,303 | | | | 1,875,734 | | | | 842,455 | | | | 1,449,261 | | | | 1,831,656 | | | | 2,517,108 | |
| | | | |
Shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | | |
Class A | | | 133,062 | | | | 143,675 | | | | 95,051 | | | | 88,863 | | | | 1,636,289 | | | | 1,397,399 | |
Class C | | | 19,494 | | | | 30,006 | | | | 17,739 | | | | 20,484 | | | | 84,927 | | | | 81,414 | |
Institutional Class | | | 88,432 | | | | 69,543 | | | | 109,851 | | | | 93,585 | | | | 230,937 | | | | 170,595 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2,372,060 | | | | 2,665,070 | | | | 2,107,887 | | | | 2,376,302 | | | | 8,452,595 | | | | 8,370,693 | |
| | | | | | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (589,708 | ) | | | (1,140,741 | ) | | | (486,526 | ) | | | (1,003,925 | ) | | | (6,405,705 | ) | | | (7,228,804 | ) |
Class C | | | (455,467 | ) | | | (581,720 | ) | | | (598,180 | ) | | | (337,176 | ) | | | (1,117,945 | ) | | | (742,301 | ) |
Institutional Class | | | (1,052,192 | ) | | | (828,173 | ) | | | (980,134 | ) | | | (1,133,073 | ) | | | (847,916 | ) | | | (2,187,569 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (2,097,367 | ) | | | (2,550,634 | ) | | | (2,064,840 | ) | | | (2,474,174 | ) | | | (8,371,566 | ) | | | (10,158,674 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 274,693 | | | | 114,436 | | | | 43,047 | | | | (97,872 | ) | | | 81,029 | | | | (1,787,981 | ) |
| | | | | | | | | | | | | | | | | | | | �� | | | | |
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Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables on the previous page and on the “Statements of changes in net assets.” For the years ended August 31, 2020 and 2019, each Fund had the following exchange transactions:
| | | | | | | | | | | | | | | | | | | | |
| | | Exchange Redemptions | | | Exchange Subscriptions | | | | |
| | | | | |
| | | Class A
Shares | | | Class C
Shares | | | Class A
Shares | | | Institutional
Class
Shares | | | Value | |
| | | | | |
Delaware Tax-Free California Fund | | | | | | | | | | | | | | | | | | | | |
8/31/20 | | | 41,500 | | | | — | | | | — | | | | 41,591 | | | $ | 497,495 | |
8/31/19 | | | 94,289 | | | | 4,281 | | | | — | | | | 98,582 | | | | 1,213,599 | |
| | | | | |
Delaware Tax-Free Colorado Fund | | | | | | | | | | | | | | | | | | | | |
8/31/20 | | | 14,854 | | | | — | | | | — | | | | 14,879 | | | | 162,881 | |
8/31/19 | | | 10,452 | | | | 5,036 | | | | 4,754 | | | | 10,763 | | | | 172,380 | |
| | | | | |
Delaware Tax-Free Idaho Fund | | | | | | | | | | | | | | | | | | | | |
8/31/20 | | | 975 | | | | 47 | | | | 47 | | | | 976 | | | | 11,445 | |
8/31/19 | | | 19,800 | | | | — | | | | — | | | | 19,815 | | | | 226,175 | |
| | | | | |
Delaware Tax-Free New York Fund | | | | | | | | | | | | | | | | | | | | |
8/31/20 | | | — | | | | 689 | | | | 687 | | | | — | | | | 7,995 | |
8/31/19 | | | 6,590 | | | | — | | | | — | | | | 6,591 | | | | 73,949 | |
| | | | | |
Delaware Tax-Free Pennsylvania Fund | | | | | | | | | | | | | | | | | | | | |
8/31/20 | | | 178,615 | | | | 34,561 | | | | 27,646 | | | | 185,745 | | | | 1,704,166 | |
8/31/19 | | | 83,022 | | | | 15,097 | | | | 15,121 | | | | 83,103 | | | | 778,069 | |
Delaware Tax-Free Arizona Fund did not have any exchange transactions for the years ended August 31, 2020 and 2019.
7. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $220,000,000 revolving line of credit intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. On November 4, 2019, the Participants entered into an amendment to the agreement for a $250,000,000 revolving line of credit (Agreement). The Agreement was increased to $275,000,000 on May 6, 2020. The Agreement is to be used as described below and operates in substantially the same manner as the original agreement. The line of credit available under the Agreement expires on November 2, 2020.
Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum of one-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on November 4, 2019.
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| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
7. Line of Credit (continued)
The Funds had no amounts outstanding as of August 31, 2020, or at any time during the year then ended.
8. Geographic, Credit, and Market Risks
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
IBOR risk is the risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments that reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR. The use of alternative reference rate products may impact investment strategy performance. These risks may also apply with respect to changes in connection with other interbank offered rates (“IBORs”), such as the euro overnight index average (EONIA), which are also the subject of recent reform.
The Funds concentrate their investments in securities issued by each corresponding state’s municipalities. The Funds invest primarily in a specific state and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam whose bonds are also free of federal and individual state income taxes. The value of the Funds’ investments may be adversely affected by new legislation within the states or US territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund.
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At August 31, 2020, the percentages of each Fund’s net assets insured by bond insurers are listed below and these securities have been identified on the “Schedules of investments.”
| | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
Arizona Fund | | Delaware Tax-Free
California Fund | | Delaware Tax-Free
Colorado Fund |
| American Capital Access | | | | 0.86 | % | | | | — | | | | | — | |
| Assured Guaranty Municipal Corporation | | | | 1.51 | % | | | | 1.67 | % | | | | 4.51 | % |
| Build America Mutual Assurance | | | | — | | | | | — | | | | | 1.11 | % |
| National Public Finance Guarantee Corporation | | | | — | | | | | 1.13 | % | | | | — | |
| | | | | | | | | | | | | | | |
| Total | | | | 2.37 | % | | | | 2.80 | % | | | | 5.62 | % |
| | | | | | | | | | | | | | | |
| | | |
| | | Delaware Tax-Free
Idaho Fund | | Delaware Tax-Free
New York Fund | | Delaware Tax-Free
Pennsylvania Fund |
| Assured Guaranty Corporation | | | | — | | | | | — | | | | | 1.14 | % |
| Assured Guaranty Municipal Corporation | | | | 4.08 | % | | | | — | | | | | 1.30 | % |
| AMBAC Assurance Corporation | | | | — | | | | | 1.23 | % | | | | — | |
| Build America Mutual Assurance | | | | — | | | | | — | | | | | 0.65 | % |
| | | | | | | | | | | | | | | |
| Total | | | | 4.08 | % | | | | 1.23 | % | | | | 3.09 | % |
| | | | | | | | | | | | | | | |
Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s Financial Services LLC (S&P), lower than Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Each Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. The Funds will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Each Fund may invest in advanced refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities, which are then deposited in an irrevocable escrow
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| | |
| Notes to financial statements |
| Delaware Funds® by Macquarie state tax-free funds | | |
8. Geographic, Credit, and Market Risks (continued)
account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Board has delegated to DMC, the day-to-day functions of determining whether individual securities are liquid for purposes of the Funds’ limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedules of investments.”
9. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
10. Recent Accounting Pronouncements
In March 2017, FASB issued Accounting Standards Update (ASU), ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has implemented ASU 2017-08 and determined that the impact of this guidance to each Fund’s net assets at the end of the period is not material.
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In August 2018, FASB issued ASU 2018-13, which changes certain fair value measurement disclosure requirements. ASU 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At this time, Management is evaluating the implications of these changes on the financial statements.
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. As of the financial reporting period, Management is evaluating the impact of applying this ASU.
11. Subsequent Events
On August 12, 2020, the Board approved a proposal to reorganize the following acquired funds with and into the applicable acquiring funds as indicated below (each, a “Reorganization” and together, the “Reorganizations”):
| | |
| Acquired Fund | | Acquiring Fund |
| |
| Delaware Tax-Free California II Fund, a series of the Delaware Group Limited-Term Government Funds | | Delaware Tax-Free California
Fund, a series of the Trust |
| |
| Delaware Tax-Free New York II Fund, a series of the Delaware Group Limited-Term Government Funds | | Delaware Tax-Free New York
Fund, a series of the Trust |
The proposal is not subject to shareholder approval. The Board of Trustees of Delaware Group Limited-Term Government Funds has determined that each Reorganization is in the best interests of the applicable Acquired Fund and that the interests of each Acquired Fund’s existing shareholders will not be diluted as a result of the Reorganization.
Effective a week before the Reorganizations, each Acquired Fund will be closed to new investors. Each Acquired Fund will continue to accept purchases (including reinvested dividends and capital gains) from existing shareholders until a week before the Reorganizations. Contingent deferred sales charges will be waived on redemptions from each Acquired Fund through the date of each Reorganization. The Reorganizations are expected to take place in December 2020.
Management has determined that no other material events or transactions occurred subsequent to August 31, 2020, that would require recognition or disclosure in the Funds’ financial statements.
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| | |
Report of independent registered public accounting firm |
To the Board of Trustees of Voyageur Insured Funds, Voyageur Mutual Funds, Voyageur Mutual Funds II and Delaware Group® State Tax-Free Income Trust and Shareholders of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, Delaware Tax-Free Colorado Fund and Delaware Tax-Free Pennsylvania Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Delaware Tax-Free Arizona Fund (constituting Voyageur Insured Funds), Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund (three of the funds constituting Voyageur Mutual Funds), Delaware Tax-Free Colorado Fund (constituting Voyageur Mutual Funds II) and Delaware Tax-Free Pennsylvania Fund (constituting Delaware Group® State Tax-Free Income Trust) (hereafter collectively referred to as the “Funds”) as of August 31, 2020, the related statements of operations for the year ended August 31, 2020, the statements of changes in net assets for each of the two years in the period ended August 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of August 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2020 and each of the financial highlights for each of the five years in the period ended August 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2020 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinions.
|
|
| /s/PricewaterhouseCoopers LLP |
| Philadelphia, Pennsylvania |
| October 19, 2020 |
We have served as the auditor of one or more investment companies in Delaware Funds® by Macquarie since 2010.
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| | |
| Other Fund information (Unaudited) |
| Delaware Funds® by Macquarie state tax-free funds | | |
Liquidity Risk Management Program
The Securities and Exchange Commission (the “SEC”) has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”), which requires all open-end funds (other than money market funds) to adopt and implement a program reasonably designed to assess and manage the fund’s “liquidity risk,” defined as the risk that the fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Funds have adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Board has designated the Division Director of the US Operational Risk Group of Macquarie Asset Management as the Program Administrator for each Fund in the Trust.
As required by the Liquidity Rule, the Program includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each of the Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of each Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting each Fund’s acquisition of Illiquid investments if, immediately after the acquisition, each Fund would hold more than 15% of its net assets in Illiquid assets. The Program also requires reporting to the SEC (on a non-public basis) and to the Board if each Fund’s holdings of Illiquid assets exceed 15% of each Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).
In assessing and managing each Fund’s liquidity risk, the Program Administrator considers, as relevant, a variety of factors, including: (1) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Funds during both normal and reasonably foreseeable stressed conditions; and (3) each Fund’s holdings of cash and cash equivalents and any borrowing arrangements. Classification of each Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or to sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value. Each Fund primarily holds assets that are classified as Highly Liquid, and therefore is not required to establish an HLIM.
At a meeting of the Board held on May 19-21, 2020, the Program Administrator provided a written report to the Board addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from December 1, 2018 through March 31, 2020. The report concluded that the Program is appropriately designed and effectively implemented and that it meets the requirements of Rule 22e-4 and each Fund’s liquidity needs. Each Fund’s HLIM is set at an appropriate level and the Funds complied with its HLIM at all times during the reporting period.
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| | |
| Other Fund information (Unaudited) |
| Delaware Funds® by Macquarie state tax-free funds | | |
Tax Information
The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of the Funds. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
All disclosures are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring reporting, it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the fiscal year ended August 31, 2020, each Fund reports distributions paid during the year as follows:
| | | | | | | | |
| | | (A)
Long-Term
Capital Gains
Distributions
(Tax Basis) | | (B)
Ordinary Income
Distributions
(Tax Basis) | | (C)
Tax-Exempt
Distributions
(Tax Basis) | | Total
Distributions
(Tax Basis) |
| | | | |
Delaware Tax-Free Arizona Fund | | — | | 5.47% | | 94.53% | | 100.00% |
Delaware Tax-Free California Fund | | 15.00% | | 8.53% | | 76.47% | | 100.00% |
Delaware Tax-Free Colorado Fund | | — | | 0.01% | | 99.99% | | 100.00% |
Delaware Tax-Free Idaho Fund | | — | | — | | 100.00% | | 100.00% |
Delaware Tax-Free New York Fund | | 5.03% | | 9.94% | | 85.03% | | 100.00% |
Delaware Tax-Free Pennsylvania Fund | | 15.40% | | 7.92% | | 76.68% | | 100.00% |
(A), (B) and (C) are based on a percentage of each Fund’s total distributions.
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Board consideration of Investment Advisory Agreements for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund at a meeting held on August 11-13, 2020
At a meeting held on August 11-13, 2020 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies, and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Management Agreement with Delaware Management Company (“DMC”), a series of Macquarie Investment Management Business Trust (“MIMBT”), included materials provided by DMC and its affiliates (collectively, “Macquarie Investment Management”) concerning, among other things, the nature, extent, and quality of services provided to the Funds; the costs of such services to the Funds; economies of scale; and the investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, materials were provided to the Trustees in May 2020, including reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy, the structure of portfolio manager compensation, comparative client fee information, and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’s ability to invest fully in accordance with Fund policies.
In considering information relating to the approval of each Fund’s advisory agreement, the Independent Trustees received assistance and advice from and met separately with independent legal counsel to the Independent Trustees and also received assistance and advice from an experienced and knowledgeable independent fund consultant, JDL Consultants, LLC (“JDL”). Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.
Nature, extent, and quality of services. The Board considered the services provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Funds® by Macquarie (“Delaware Funds”); and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of DMC and the emphasis placed on research in
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| | |
| Other Fund information (Unaudited) |
| Delaware Funds® by Macquarie state tax-free funds | | |
Board consideration of Investment Advisory Agreements for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund at a meeting held on August 11-13, 2020 (continued)
the investment process. The Board recognized DMC’s receipt of certain favorable industry distinctions during the past several years. The Board gave favorable consideration to DMC’s efforts to control expenses while maintaining service levels committed to Fund matters. The Board also noted the benefits provided to Fund shareholders through (a) each shareholder’s ability to: (i) exchange an investment in one Delaware Fund for the same class of shares in another Delaware Fund without a sales charge, or (ii) reinvest Fund dividends into additional shares of the Fund or into additional shares of other Delaware Funds, and (b) the privilege to combine holdings in other Delaware Funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent, and quality of the overall services provided by DMC.
Investment performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board considered performance reports and discussions with portfolio managers at Investment Committee meetings throughout the year, the Board gave particular weight to the Broadridge reports furnished for the Annual Meeting. The Broadridge reports prepared for each Fund showed the investment performance of its Class A shares in comparison to a group of similar funds as selected by Broadridge (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past 1-, 3-, 5-, and 10-year periods, to the extent, applicable, ended January 31, 2020. The Board’s objective is that each Fund’s performance for the 1-, 3-, and 5-year periods be at or above the median of its Performance Universe.
Delaware Tax-Free Arizona Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional “other states” municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free California Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional California municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free Colorado Fund –The Performance Universe for the Fund consisted of the Fund and all retail and institutional “other states” municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free Idaho Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional “other states” municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, and 5-year periods was in the
182
second quartile of its Performance Universe. The report further showed that the Fund’s total return for the 10-year period was in the third quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free New York Fund –The Performance Universe for the Fund consisted of the Fund and all retail and institutional New York municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free Pennsylvania Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional Pennsylvania municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Comparative expenses. The Board considered expense data for the Delaware Funds. Management provided the Board with information on pricing levels and fee structures for each Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and total expense ratios of a group of similar funds as selected by Broadridge (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Broadridge total expenses, for comparative consistency, were shown by Broadridge for Class A shares and comparative total expenses including 12b-1 and non-12b-1 service fees. The Board’s objective is for each Fund’s total expense ratio to be competitive with those of the peer funds within its Expense Group.
Delaware Tax-Free Arizona Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2020 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Delaware Tax-Free California Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered favorably fee waivers in place through December 2020 and various initiatives implemented by Management, such as a negotiation of lower fees for fund accounting, fund accounting oversight services, and custody,
183
| | |
| Other Fund information (Unaudited) |
| Delaware Funds® by Macquarie state tax-free funds | | |
Board consideration of Investment Advisory Agreements for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund at a meeting held on August 11-13, 2020 (continued)
which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Delaware Tax-Free Colorado Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the highest expenses of its Expense Group. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered favorably fee waivers in place through December 2020 and various initiatives implemented by Management, such as a negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Delaware Tax-Free Idaho Fund – The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the second highest expenses of its Expense Group. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered waivers in place through December 2020 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Delaware Tax-Free New York Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2020 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Delaware Tax-Free Pennsylvania Fund – The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the second highest expenses of its Expense Group. The Board noted that the Fund’s management fee and total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2020 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an
184
opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Management profitability. The Board considered the level of profits realized by DMC in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of DMC’s business in providing management and other services to each of the individual funds and the Delaware Funds as a whole. Specific attention was given to the methodology used by DMC in allocating costs for the purpose of determining profitability. Management stated that the level of profits of DMC, to a certain extent, reflects recent operational cost savings and efficiencies initiated by DMC. The Board considered DMC’s efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission initiatives. The Board also considered the extent to which DMC might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. As part of its work, the Board also reviewed a report prepared by JDL regarding MIMBT profitability as compared to certain peer fund complexes and the Independent Trustees met with JDL personnel to discuss DMC’s profitability in such context. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC.
Economies of scale. The Trustees considered whether economies of scale are realized by DMC as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed each Fund’s advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints, and which applies to most funds in the Delaware Funds complex. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case in the absence of breakpoints, when the asset levels specified in the breakpoints are exceeded. Although, as of March 31, 2020, the Funds had not reached a size at which they could take advantage of any breakpoints in the applicable fee schedule, the Board recognized that each Fund’s fee was structured so that, if the Fund increases sufficiently in size, then economies of scale may be shared.
185
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
|
Interested Trustee |
| | | | | |
Shawn K. Lytle1
610 Market Street
Philadelphia, PA 19106
February 1970 | | President,
Chief Executive Officer,
and Trustee | | President and
Chief Executive Officer
since August 2015
Trustee since
September 2015 | | President — Macquarie Investment Management2
(June 2015–Present)
Regional Head of Americas — UBS Global Asset Management
(April 2010–May 2015) | | 93 | | Trustee — UBS Relationship Funds, SMA Relationship Trust, and UBS Funds
(May 2010–April 2015) |
|
Independent Trustees |
| | | | | |
Jerome D. Abernathy
610 Market Street
Philadelphia, PA 19106
July 1959 | | Trustee | | Since January 2019 | | Managing Member, Stonebrook Capital Management, LLC (financial technology: macro factors and databases)
(January 1993-Present) | | 93 | | None |
186
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
Thomas L. Bennett
610 Market Street
Philadelphia, PA 19106
October 1947 | | Chair and Trustee | | Trustee since March 2005
Chair since March 2015 | | Private Investor
(March 2004–Present) | | 93 | | None |
| | | | | |
Ann D. Borowiec
610 Market Street
Philadelphia, PA 19106
November 1958 | | Trustee | | Since March 2015 | | Chief Executive Officer, Private Wealth Management (2011–2013) and Market Manager, New Jersey Private Bank (2005–2011) — J.P. Morgan Chase & Co. | | 93 | | Director — Banco Santander International
(October 2016–December 2019)
Director — Santander Bank, N.A. (December 2016–December 2019) |
| | | | | |
Joseph W. Chow
610 Market Street
Philadelphia, PA 19106
January 1953 | | Trustee | | Since January 2013 | | Private Investor
(April 2011–Present) | | 93 | | Director and Audit Committee Member — Hercules Technology Growth Capital, Inc.
(July 2004–July 2014) |
187
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
John A. Fry
610 Market Street
Philadelphia, PA 19106
May 1960 | | Trustee | | Since January 2001 | | President — Drexel University (August 2010–Present)
President — Franklin & Marshall College (July 2002–June 2010) | | 93 | | Director; Compensation Committee and Governance Committee Member — Community Health Systems
(May 2004–Present)
Director — Drexel Morgan & Co. (2015–2019)
Director and Audit Committee Member — vTv Therapeutics Inc. (2017–Present)
Director and Audit Committee Member — FS Credit Real Estate Income Trust, Inc. (2018–Present)
Director — Federal Reserve
Bank of Philadelphia
(January 2020–Present) |
| | | | | |
Lucinda S. Landreth
610 Market Street
Philadelphia, PA 19106
June 1947 | | Trustee | | Since March 2005 | | Private Investor (2004–Present) | | 93 | | None |
188
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
Frances A. Sevilla-Sacasa
610 Market Street
Philadelphia, PA 19106
January 1956 | | Trustee | | Since September 2011 | | Private Investor
(January 2017–Present)
Chief Executive Officer — Banco Itaú International
(April 2012–December 2016)
Executive Advisor to Dean (August 2011–March 2012) and
Interim Dean
(January 2011–July 2011) — University of Miami School of Business Administration
President — U.S. Trust, Bank of
America Private Wealth Management (Private Banking) (July 2007-December 2008) | | 93 | | Trust Manager and Audit Committee Chair — Camden
Property Trust
(August 2011–Present)
Director; Strategic
Planning and Reserves
Committee and Nominating
and Governance
Committee Member —
Callon Petroleum Company
(December 2019–Present)
Director; Audit Committee Member — Carrizo Oil & Gas, Inc. (March 2018–December 2019) |
189
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
Thomas K. Whitford
610 Market Street
Philadelphia, PA 19106
March 1956 | | Trustee | | Since January 2013 | | Vice Chairman (2010–April 2013)
— PNC Financial Services Group | | 93 | | Director — HSBC North America Holdings Inc.
(December 2013–Present)
Director — HSBC USA Inc.
(July 2014–Present)
Director — HSBC Bank USA, National Association
(July 2014–March 2017)
Director — HSBC Finance Corporation
(December 2013–April 2018) |
190
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
Christianna Wood
610 Market Street
Philadelphia, PA 19106
August 1959 | | Trustee | | Since January 2019 | | Chief Executive Officer and
President — Gore Creek Capital,
Ltd. (August 2009–Present) | | 93 | | Director; Finance Committee and
Audit Committee Member —
H&R Block Corporation
(July 2008–Present)
Director; Investments
Committee, Capital and Finance
Committee, and Audit
Committee Member — Grange
Insurance (2013–Present)
Trustee; Chair of Nominating and
Governance Committee and
Audit Committee Member — The
Merger Fund (2013–Present), The
Merger Fund VL (2013–Present);
WCM Alternatives: Event-Driven
Fund (2013–Present), and WCM
Alternatives: Credit Event Fund
(December 2017–Present)
Director; Chair of Governance
Committee and Audit Committee
Member — International
Securities Exchange (2010–2016) |
191
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
Janet L. Yeomans
610 Market Street
Philadelphia, PA 19106
July 1948 | | Trustee | | Since April 1999 | | Vice President and Treasurer
(January 2006–July 2012), Vice
President — Mergers &
Acquisitions
(January 2003–January 2006),
and Vice President and Treasurer
(July 1995–January 2003) — 3M
Company | | 93 | | Director; Personnel and
Compensation Committee Chair;
Member of Nominating,
Investments, and Audit
Committees for various periods
throughout directorship —
Okabena Company (2009–2017) |
| | | | | | |
Officers | | | | | | | | | | |
| | | | | |
David F. Connor
610 Market Street
Philadelphia, PA 19106
December 1963 | | Senior Vice President,
General Counsel, and
Secretary | | Senior Vice President,
since May 2013;
General Counsel
since May 2015;
Secretary since
October 2005 | | David F. Connor has served in
various capacities at different
times at Macquarie Investment
Management. | | 93 | | None3 |
| | | | | |
Daniel V. Geatens
610 Market Street
Philadelphia, PA 19106
October 1972 | | Vice President and
Treasurer | | Vice President and
Treasurer since
October 2007 | | Daniel V. Geatens has served in
various capacities at different
times at Macquarie Investment
Management. | | 93 | | None3 |
192
| | | | | | | | | | |
Name,
Address,
and Birth Date | | Position(s)
Held with
Fund(s) | | Length of Time
Served | | Principal
Occupation(s)
During the
Past Five Years | | Number of
Portfolios in Fund
Complex Overseen
by Trustee
or Officer | | Other
Directorships
Held by
Trustee
or Officer |
| | | | | |
Richard Salus
610 Market Street
Philadelphia, PA 19106
October 1963 | | Senior Vice President
and Chief Financial
Officer | | Senior Vice President
and Chief Financial
Officer since
November 2006 | | Richard Salus has served in
various capacities at different
times at Macquarie Investment
Management. | | 93 | | None |
1 Shawn K. Lytle is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.
2 Macquarie Investment Management is the marketing name for Macquarie Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment manager, principal underwriter, and its transfer agent.
3 David F. Connor and Daniel V. Geatens serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant. Mr. Geatens also serves as the Chief Financial Officer of the Optimum Fund Trust, and he is the Chief Financial Officer and Treasurer for Macquarie Global Infrastructure Total Return Fund Inc.
The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 231-8002.
193
About the organization
Board of trustees
Shawn K. Lytle
President and
Chief Executive Officer
Delaware Funds®
by Macquarie
Philadelphia, PA
Jerome D. Abernathy
Managing Member
Stonebrook Capital
Management, LLC
Jersey City, NJ
Thomas L. Bennett
Chairman of the Board
Delaware Funds
by Macquarie
Private Investor
Rosemont, PA
Ann D. Borowiec
Former Chief Executive
Officer
Private Wealth Management
J.P. Morgan Chase & Co.
New York, NY
Joseph W. Chow
Former Executive Vice
President
State Street Corporation
Boston, MA
John A. Fry
President
Drexel University
Philadelphia, PA
Lucinda S. Landreth
Former Chief Investment
Officer
Assurant, Inc.
New York, NY
Frances A. Sevilla-Sacasa
Former Chief Executive Officer Banco Itaú International Miami, FL
Thomas K. Whitford
Former Vice Chairman
PNC Financial Services Group
Pittsburgh, PA
Christianna Wood
Chief Executive Officer
and President
Gore Creek Capital, Ltd.
Golden, CO
Janet L. Yeomans
Former Vice President and
Treasurer
3M Company
St. Paul, MN
Affiliated officers
David F. Connor
Senior Vice President,
General Counsel,
and Secretary
Delaware Funds
by Macquarie
Philadelphia, PA
Daniel V. Geatens
Vice President and
Treasurer
Delaware Funds
by Macquarie
Philadelphia, PA
Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Funds
by Macquarie
Philadelphia, PA
This annual report is for the information of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, and Delaware Tax-Free Pennsylvania Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT. Each Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent Form N-PORT are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
194
Item 2. Code of Ethics
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Jerome D. Abernathy
John A. Fry
Thomas K. Whitford, Chair
Christianna Wood
Item 4. Principal Accountant Fees and Services
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $39,640 for the fiscal year ended August 31, 2020.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $40,400 for the fiscal year ended August 31, 2019.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2020.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2019.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2020.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2019.
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $5,607,000 and $9,955,000 for the registrant’s fiscal years ended August 31, 2020 and August 31, 2019, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
