UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-03363 | |
Exact name of registrant as specified in charter: | Delaware Group® Limited-Term | |
Government Funds | ||
Address of principal executive offices: | 610 Market Street | |
Philadelphia, PA 19106 | ||
Name and address of agent for service: | David F. Connor, Esq. | |
610 Market Street | ||
Philadelphia, PA 19106 | ||
Registrant’s telephone number, including area code: | (800) 523-1918 | |
Date of fiscal year end: | December 31 | |
Date of reporting period: | June 30, 2020 |
Item 1. Reports to Stockholders
Table of Contents
Delaware Funds® by MACQUARIE |
Semiannual report
Fixed income mutual fund
Delaware Limited-Term Diversified Income Fund
June 30, 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.
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Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, 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. | ||||
Table of Contents
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 Limited-Term Diversified Income Fund at delawarefunds.com/literature. |
Manage your account online
● | Check your account balance and transactions |
● | View statements and tax forms |
● | Make purchases and redemptions |
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, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A.
The Fund is 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 Fund is governed by US laws and regulations.
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Unless otherwise noted, views expressed herein are current as of June 30, 2020, and subject to change for events occurring after such date.
The Fund is not FDIC insured and is 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.
Table of Contents
For the six-month period from January 1, 2020 to June 30, 2020 (Unaudited)
The investment objective of the Fund is to seek maximum total return, consistent with reasonable risk.
As a shareholder of the 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. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from Jan. 1, 2020 to June 30, 2020.
Actual expenses
The first section of the table 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 table shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the 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 the 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 table 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 the 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 Fund’s expenses shown in the table reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
1
Table of Contents
Disclosure of Fund expenses
For the six-month period from January 1, 2020 to June 30, 2020 (Unaudited) |
Delaware Limited-Term Diversified Income Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $1,026.30 | 0.54% | $2.72 | ||||||||||||
Class C | 1,000.00 | 1,020.70 | 1.39% | 6.98 | ||||||||||||
Class R | 1,000.00 | 1,023.20 | 0.89% | 4.48 | ||||||||||||
Institutional Class | 1,000.00 | 1,027.00 | 0.39% | 1.97 | ||||||||||||
Class R6 | 1,000.00 | 1,026.20 | 0.32% | 1.61 | ||||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||||
Class A | $1,000.00 | $1,022.18 | 0.54% | $2.72 | ||||||||||||
Class C | 1,000.00 | 1,017.95 | 1.39% | 6.97 | ||||||||||||
Class R | 1,000.00 | 1,020.44 | 0.89% | 4.47 | ||||||||||||
Institutional Class | 1,000.00 | 1,022.92 | 0.39% | 1.96 | ||||||||||||
Class R6 | 1,000.00 | 1,023.27 | 0.32% | 1.61 |
*“ | Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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 Fund’s expenses reflected above, the Fund also indirectly bears its portion of the fees and expenses of the investment companies (Underlying Funds) in which it invests. The table above does not reflect the expenses of the Underlying Funds.
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Table of Contents
Security type / sector allocation | ||||
Delaware Limited-Term Diversified Income Fund | As of June 30, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations. |
Security type / sector | Percentage of net assets | ||||
Agency Asset-Backed Securities | 0.00% | ||||
Agency Collateralized Mortgage Obligations | 3.33% | ||||
Agency Commercial Mortgage-Backed Securities | 0.34% | ||||
Agency Mortgage-Backed Securities | 10.83% | ||||
Convertible Bond | 0.01% | ||||
Corporate Bonds | 37.61% | ||||
Banking | 11.30% | ||||
Basic Industry | 3.18% | ||||
Capital Goods | 1.63% | ||||
Communications | 3.44% | ||||
Consumer Cyclical | 0.98% | ||||
Consumer Non-Cyclical | 6.15% | ||||
Electric | 5.53% | ||||
Energy | 2.82% | ||||
Finance Companies | 1.34% | ||||
Insurance | 0.47% | ||||
Real Estate | 0.09% | ||||
Services | 0.08% | ||||
Technology | 0.40% | ||||
Transportation | 0.20% | ||||
Loan Agreements | 0.36% | ||||
Non-Agency Asset-Backed Securities | 16.60% | ||||
Non-Agency Collateralized Mortgage Obligations | 0.56% | ||||
Non-Agency Commercial Mortgage-Backed Securities | 1.30% | ||||
Sovereign Bonds | 0.67% | ||||
Supranational Bank | 0.12% | ||||
US Treasury Obligations | 25.15% | ||||
Preferred Stock | 0.34% | ||||
Short-Term Investments | 3.45% | ||||
Total Value of Securities | 100.67% | ||||
Liabilities Net of Receivables and Other Assets | (0.67%) | ||||
Total Net Assets | 100.00% |
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Table of Contents
Delaware Limited-Term Diversified Income Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
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Agency Asset-Backed Securities – 0.00% | ||||||||
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Fannie Mae REMIC Trust | 31 | $ | 31 | |||||
Freddie Mac Structured Pass Through Certificates | 3,505 | 3,751 | ||||||
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Total Agency Asset-Backed Securities (cost $3,695) | 3,782 | |||||||
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Agency Collateralized Mortgage Obligations – 3.33% | ||||||||
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Fannie Mae Grantor Trust | 19,256 | 22,762 | ||||||
Fannie Mae REMICs | ||||||||
Series 2011-105 FP 0.585% (LIBOR01M + 0.40%, Cap | 1,147,828 | 1,146,851 | ||||||
Series 2012-128 NP 2.50% 11/25/42 | 467,365 | 488,580 | ||||||
Series 2013-4 PL 2.00% 2/25/43 | 76,000 | 77,031 | ||||||
Series 2016-61 ML 3.00% 9/25/46 | 61,000 | 67,343 | ||||||
Series 2016-80 JZ 3.00% 11/25/46 | 155,225 | 162,302 | ||||||
Series 2017-40 GZ 3.50% 5/25/47 | 40,213 | 44,651 | ||||||
Series 2017-94 CZ 3.50% 11/25/47 | 35,126 | 38,266 | ||||||
Series 2017-99 DZ 3.50% 12/25/47 | 290,039 | 317,373 | ||||||
Freddie Mac REMICs | ||||||||
Series 3067 FA 0.535% (LIBOR01M + 0.35%, Cap | 1,477,790 | 1,475,312 | ||||||
Series 3800 AF 0.685% (LIBOR01M + 0.50%, Cap | 915,672 | 919,979 | ||||||
Series 4197 LZ 4.00% 4/15/43 | 332,836 | 378,757 | ||||||
Series 4210 Z 3.00% 5/15/43 | 881,465 | 909,566 | ||||||
Series 4531 PZ 3.50% 11/15/45 | 153,758 | 170,362 | ||||||
Series 4625 PZ 3.00% 6/15/46 | 37,948 | 38,897 | ||||||
Series 4650 JG 3.00% 11/15/46 | 1,997,000 | 2,202,368 | ||||||
Series 4695 OZ 3.00% 6/15/47 | 621,421 | 674,748 | ||||||
Series 4994 AV 2.00% 12/25/45 = | 1,200,000 | 1,239,000 | ||||||
Freddie Mac Structured Pass Through Certificates | ||||||||
Series T-54 2A 6.50% 2/25/43 ◆ | 610 | 748 | ||||||
Series T-58 2A 6.50% 9/25/43 ◆ | 365,212 | 425,248 | ||||||
GNMA | ||||||||
Series 2013-113 LY 3.00% 5/20/43 | 17,000 | 18,547 | ||||||
Series 2016-160 VZ 2.50% 11/20/46 | 32,809 | 34,766 | ||||||
Series 2017-19 AY 3.00% 2/20/47 | 30,000 | 33,507 | ||||||
Series 2017-36 ZC 3.00% 3/20/47 | 197,308 | 215,767 | ||||||
Series 2017-52 LE 3.00% 1/16/47 | 474,000 | 535,697 | ||||||
Series 2017-56 GZ 3.50% 4/20/47 | 15,638 | 18,665 | ||||||
Series 2017-88 PB 3.00% 1/20/47 | 304,000 | 335,617 | ||||||
Series 2017-163 KH 3.50% 3/20/44 | 455,000 | 484,911 |
4
Table of Contents
Principal amount° | Value (US $) | |||||||
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Agency Collateralized Mortgage Obligations (continued) | ||||||||
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GNMA | ||||||||
Series 2017-180 MJ 3.00% 12/20/47 | 298,000 | $ | 328,329 | |||||
Series 2018-1 QG 3.00% 6/20/47 | 829,072 | 901,390 | ||||||
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Total Agency Collateralized Mortgage Obligations (cost $12,500,693) | 13,707,340 | |||||||
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Agency Commercial Mortgage-Backed Securities – 0.34% | ||||||||
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FREMF Mortgage Trust | ||||||||
Series 2011-K15 B 144A 5.129% 8/25/44 #● | 95,000 | 97,955 | ||||||
Series 2014-K717 B 144A 3.754% 11/25/47 #● | 245,000 | 250,183 | ||||||
Series 2014-K717 C 144A 3.754% 11/25/47 #● | 80,000 | 80,508 | ||||||
Series 2016-K722 B 144A 3.975% 7/25/49 #● | 430,000 | 450,073 | ||||||
NCUA Guaranteed Notes Trust | 528,520 | 525,493 | ||||||
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Total Agency Commercial Mortgage-Backed Securities (cost $1,396,905) | 1,404,212 | |||||||
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Agency Mortgage-Backed Securities – 10.83% | ||||||||
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Fannie Mae S.F. 30 yr | ||||||||
3.00% 5/1/46 | 1,183,447 | 1,253,271 | ||||||
3.00% 1/1/47 | 1,588,000 | 1,701,363 | ||||||
3.00% 1/1/50 | 331,434 | 349,202 | ||||||
3.00% 3/1/50 | 1,266,416 | 1,352,677 | ||||||
3.50% 7/1/47 | 452,143 | 484,179 | ||||||
3.50% 11/1/48 | 289,864 | 306,893 | ||||||
3.50% 2/1/50 | 3,675,608 | 3,863,788 | ||||||
3.50% 3/1/50 | 103,368 | 113,459 | ||||||
4.00% 4/1/48 | 204,693 | 217,877 | ||||||
4.00% 10/1/48 | 922,464 | 1,019,191 | ||||||
4.50% 5/1/46 | 1,425,235 | 1,583,780 | ||||||
4.50% 11/1/49 | 1,431,584 | 1,536,882 | ||||||
5.00% 1/1/40 | 41,858 | 48,079 | ||||||
5.00% 8/1/49 | 4,836,733 | 5,484,831 | ||||||
5.50% 4/1/33 | 48,510 | 55,427 | ||||||
5.50% 6/1/33 | 45,099 | 51,448 | ||||||
5.50% 10/1/33 | 20,628 | 22,677 | ||||||
5.50% 12/1/33 | 193,472 | 221,771 | ||||||
5.50% 2/1/34 | 89,646 | 103,846 | ||||||
5.50% 9/1/34 | 120,866 | 137,607 | ||||||
5.50% 8/1/37 | 248,912 | 285,439 | ||||||
5.50% 1/1/38 | 252,463 | 289,451 | ||||||
5.50% 7/1/41 | 41,594 | 47,708 | ||||||
5.50% 5/1/44 | 4,539,137 | 5,209,898 | ||||||
6.00% 6/1/41 | 428,131 | 499,396 |
5
Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
Principal amount° | Value (US $) | |||||||
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Agency Mortgage-Backed Securities (continued) | ||||||||
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Fannie Mae S.F. 30 yr | ||||||||
6.00% 7/1/41 | 4,933,644 | $ | 5,754,085 | |||||
6.00% 1/1/42 | 269,315 | 314,110 | ||||||
Fannie Mae S.F. 30 yr TBA | ||||||||
2.50% 7/1/50 | 1,689,000 | 1,760,057 | ||||||
3.00% 7/1/50 | 2,199,000 | 2,315,306 | ||||||
3.50% 7/1/50 | 1,180,000 | 1,240,936 | ||||||
4.00% 7/1/50 | 677,000 | 717,329 | ||||||
Freddie Mac ARM | 4,907 | 4,928 | ||||||
Freddie Mac S.F. 30 yr | ||||||||
3.00% 12/1/46 | 255,136 | 269,599 | ||||||
4.50% 8/1/48 | 1,688,544 | 1,844,146 | ||||||
4.50% 4/1/49 | 367,793 | 402,560 | ||||||
5.00% 12/1/44 | 1,515,051 | 1,738,102 | ||||||
5.00% 7/1/45 | 431,688 | 495,202 | ||||||
5.50% 1/1/34 | 30,500 | 35,300 | ||||||
5.50% 6/1/34 | 262,498 | 304,580 | ||||||
5.50% 6/1/35 | 68,987 | 79,108 | ||||||
5.50% 7/1/37 | 104,636 | 120,322 | ||||||
5.50% 8/1/37 | 89,680 | 103,017 | ||||||
5.50% 10/1/37 | 88,228 | 101,376 | ||||||
5.50% 7/1/38 | 193,069 | 225,863 | ||||||
5.50% 11/1/38 | 190,660 | 221,813 | ||||||
5.50% 4/1/40 | 39,260 | 44,192 | ||||||
5.50% 6/1/41 | 219,219 | 251,856 | ||||||
6.00% 5/1/39 | 27,902 | 32,807 | ||||||
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Total Agency Mortgage-Backed Securities (cost $43,775,243) | 44,616,734 | |||||||
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Convertible Bond – 0.01% | ||||||||
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Cheniere Energy 144A 4.875% exercise price $93.64, | 37,000 | 37,544 | ||||||
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Total Convertible Bond (cost $37,324) | 37,544 | |||||||
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Corporate Bonds – 37.61% | ||||||||
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Banking – 11.30% | ||||||||
Banco de Credito del Peru 144A 2.70% 1/11/25 # | 200,000 | 200,713 | ||||||
Banco de Credito e Inversiones 144A 4.00% 2/11/23 # | 200,000 | 210,579 | ||||||
Banco del Estado de Chile 144A 2.704% 1/9/25 # | 220,000 | 226,462 | ||||||
Banco Santander 3.50% 4/11/22 | 1,600,000 | 1,664,538 | ||||||
Banco Santander Mexico 144A 4.125% 11/9/22 # | 150,000 | 156,656 | ||||||
Bancolombia 3.00% 1/29/25 | 215,000 | 210,924 |
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Table of Contents
Principal amount° | Value (US $) | |||||||
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Corporate Bonds (continued) | ||||||||
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Banking (continued) | ||||||||
Bank of America | ||||||||
3.458% 3/15/25 µ | 2,845,000 | $ | 3,087,426 | |||||
5.625% 7/1/20 | 645,000 | 645,000 | ||||||
Bank of Georgia 144A 6.00% 7/26/23 # | 200,000 | 199,277 | ||||||
Bank of Montreal 1.85% 5/1/25 | 345,000 | 357,425 | ||||||
Bank of New York Mellon 1.60% 4/24/25 | 2,000,000 | 2,074,693 | ||||||
Barclays Bank 1.70% 5/12/22 | 2,420,000 | 2,463,264 | ||||||
BBVA Bancomer 144A 6.75% 9/30/22 # | 150,000 | 160,097 | ||||||
Citigroup 4.044% 6/1/24 µ | 2,430,000 | 2,639,496 | ||||||
Citizens Financial Group 2.85% 7/27/26 | 1,545,000 | 1,674,270 | ||||||
Credit Agricole 144A 1.907% 6/16/26 #µ | 370,000 | 375,530 | ||||||
Credit Suisse Group 144A 2.593% 9/11/25 #µ | 2,295,000 | 2,374,853 | ||||||
Development Bank of Mongolia 144A 7.25% 10/23/23 # | 200,000 | 194,712 | ||||||
Emirates NBD Bank 2.625% 2/18/25 | 200,000 | 202,160 | ||||||
Goldman Sachs Group 3.50% 4/1/25 | 180,000 | 197,585 | ||||||
ICICI Bank 3.25% 9/9/22 | 320,000 | 324,041 | ||||||
JPMorgan Chase & Co. | ||||||||
4.023% 12/5/24 µ | 4,240,000 | 4,674,291 | ||||||
4.60%µy | 135,000 | 120,535 | ||||||
KEB Hana Bank 144A 3.375% 1/30/22 # | 500,000 | 519,555 | ||||||
KeyBank | ||||||||
2.40% 6/9/22 | 250,000 | 258,800 | ||||||
3.18% 5/22/22 | 1,335,000 | 1,384,735 | ||||||
Kookmin Bank 144A 2.875% 3/25/23 # | 200,000 | 210,371 | ||||||
Morgan Stanley | ||||||||
1.668% (LIBOR03M + 1.22%) 5/8/24 ● | 1,605,000 | 1,617,309 | ||||||
2.188% 4/28/26 µ | 415,000 | 432,099 | ||||||
2.75% 5/19/22 | 1,075,000 | 1,117,968 | ||||||
3.622% 4/1/31 µ | 305,000 | 349,075 | ||||||
National Securities Clearing 144A 1.20% 4/23/23 # | 520,000 | 528,240 | ||||||
PNC Bank 2.70% 11/1/22 | 1,960,000 | 2,051,421 | ||||||
Popular 6.125% 9/14/23 | 500,000 | 506,823 | ||||||
QNB Finance 3.50% 3/28/24 | 330,000 | 349,342 | ||||||
Regions Financial | ||||||||
2.75% 8/14/22 | 370,000 | 385,519 | ||||||
3.80% 8/14/23 | 1,070,000 | 1,164,273 | ||||||
Royal Bank of Scotland Group 8.625%µy | 1,285,000 | 1,338,931 | ||||||
Truist Bank 2.636% 9/17/29 µ | 1,465,000 | 1,470,704 | ||||||
Truist Financial 2.70% 1/27/22 | 2,785,000 | 2,873,741 | ||||||
Turkiye Garanti Bankasi 144A 5.25% 9/13/22 # | 235,000 | 235,414 | ||||||
UBS 144A 1.75% 4/21/22 # | 200,000 | 203,828 | ||||||
UBS Group 144A 3.00% 4/15/21 # | 2,700,000 | 2,753,547 |
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Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
Principal amount° | Value (US $) | |||||||
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Corporate Bonds (continued) | ||||||||
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Banking (continued) | ||||||||
US Bank | ||||||||
2.05% 10/23/20 | 450,000 | $ | 451,797 | |||||
3.40% 7/24/23 | 360,000 | 389,551 | ||||||
USB Capital IX 3.50% (LIBOR03M + 1.02%)y● | 1,860,000 | 1,539,606 | ||||||
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46,567,176 | ||||||||
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Basic Industry – 3.18% | ||||||||
Air Products and Chemicals | ||||||||
1.50% 10/15/25 | 75,000 | 77,615 | ||||||
1.85% 5/15/27 | 95,000 | 99,617 | ||||||
BMC East 144A 5.50% 10/1/24 # | 500,000 | 505,573 | ||||||
DuPont de Nemours 2.169% 5/1/23 | 1,495,000 | 1,523,658 | ||||||
Equate Petrochemical 144A 3.00% 3/3/22 # | 265,000 | 268,485 | ||||||
First Quantum Minerals 144A 7.50% 4/1/25 # | 250,000 | 239,779 | ||||||
Georgia-Pacific | ||||||||
144A 1.75% 9/30/25 # | 285,000 | 294,233 | ||||||
144A 2.10% 4/30/27 # | 230,000 | 239,032 | ||||||
144A 5.40% 11/1/20 # | 3,090,000 | 3,139,319 | ||||||
Gold Fields Orogen Holdings BVI 144A 5.125% 5/15/24 # | 250,000 | 269,224 | ||||||
Hudbay Minerals 144A 7.25% 1/15/23 # | 185,000 | 182,899 | ||||||
Inversiones CMPC 144A 4.75% 9/15/24 # | 200,000 | 215,919 | ||||||
Kraton Polymers 144A 7.00% 4/15/25 # | 250,000 | 252,127 | ||||||
LYB International Finance III 2.875% 5/1/25 | 225,000 | 239,872 | ||||||
New Gold 144A 6.375% 5/15/25 # | 500,000 | 506,823 | ||||||
Novolipetsk Steel Via Steel Funding DAC 144A | 250,000 | 265,922 | ||||||
Nutrien 1.90% 5/13/23 | 1,365,000 | 1,409,600 | ||||||
PolyOne 144A 5.75% 5/15/25 # | 350,000 | 360,719 | ||||||
Sociedad Quimica y Minera de Chile 144A | 200,000 | 207,029 | ||||||
Standard Industries 144A 6.00% 10/15/25 # | 250,000 | 258,096 | ||||||
Steel Dynamics 2.80% 12/15/24 | 1,455,000 | 1,516,108 | ||||||
Syngenta Finance | ||||||||
144A 3.933% 4/23/21 # | 620,000 | 626,134 | ||||||
144A 4.441% 4/24/23 # | 200,000 | 210,073 | ||||||
WESCO Distribution 144A 7.125% 6/15/25 # | 200,000 | 211,440 | ||||||
|
| |||||||
13,119,296 | ||||||||
|
| |||||||
Capital Goods – 1.63% | ||||||||
Bombardier 144A 6.00% 10/15/22 # | 500,000 | 351,225 | ||||||
General Dynamics 3.00% 5/11/21 | 1,990,000 | 2,036,117 | ||||||
General Electric 3.45% 5/1/27 | 245,000 | 251,537 | ||||||
Mauser Packaging Solutions Holding 144A | 350,000 | 344,527 |
8
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Corporate Bonds (continued) | ||||||||
| ||||||||
Capital Goods (continued) | ||||||||
Otis Worldwide 144A 2.056% 4/5/25 # | 1,245,000 | $ | 1,306,192 | |||||
Roper Technologies 2.35% 9/15/24 | 2,295,000 | 2,420,259 | ||||||
|
| |||||||
6,709,857 | ||||||||
|
| |||||||
Communications – 3.44% | ||||||||
AT&T 1.498% (LIBOR03M + 1.18%) 6/12/24 • | 1,985,000 | 1,989,691 | ||||||
Baidu 3.875% 9/29/23 | 200,000 | 213,319 | ||||||
Charter Communications Operating 4.908% 7/23/25 | 1,515,000 | 1,738,430 | ||||||
Consolidated Communications 6.50% 10/1/22 | 190,000 | 175,631 | ||||||
Crown Castle International 5.25% 1/15/23 | 2,005,000 | 2,231,887 | ||||||
CSC Holdings 6.75% 11/15/21 | 375,000 | 394,697 | ||||||
Fox 4.03% 1/25/24 | 2,280,000 | 2,528,928 | ||||||
IHS Netherlands Holdco 144A 7.125% 3/18/25 # | 200,000 | 204,000 | ||||||
Ooredoo International Finance 144A 5.00% 10/19/25 # | 200,000 | 229,203 | ||||||
Radiate Holdco 144A 6.625% 2/15/25 # | 155,000 | 154,823 | ||||||
Sirius XM Radio 144A 4.625% 7/15/24 # | 250,000 | 257,110 | ||||||
Sprint Spectrum 144A 4.738% 3/20/25 # | 450,000 | 488,765 | ||||||
Tencent Holdings 144A 3.28% 4/11/24 # | 200,000 | 212,702 | ||||||
Time Warner Entertainment 8.375% 3/15/23 | 1,795,000 | 2,104,961 | ||||||
T-Mobile USA | ||||||||
144A 1.50% 2/15/26 # | 250,000 | 250,607 | ||||||
144A 3.50% 4/15/25 # | 290,000 | 316,650 | ||||||
Turk Telekomunikasyon 144A 4.875% 6/19/24 # | 200,000 | 198,181 | ||||||
Verizon Communications 3.15% 3/22/30 | 155,000 | 175,564 | ||||||
VTR Finance 144A 6.875% 1/15/24 # | 300,000 | 306,876 | ||||||
|
| |||||||
14,172,025 | ||||||||
|
| |||||||
Consumer Cyclical – 0.98% | ||||||||
El Puerto de Liverpool 144A 3.95% 10/2/24 # | 200,000 | 204,751 | ||||||
Ford Motor 8.50% 4/21/23 | 175,000 | 185,391 | ||||||
General Motors Financial | ||||||||
3.45% 4/10/22 | 1,195,000 | 1,218,814 | ||||||
4.15% 6/19/23 | 1,390,000 | 1,453,464 | ||||||
Kia Motors 144A 3.00% 4/25/23 # | 200,000 | 206,368 | ||||||
MGM Resorts International 5.75% 6/15/25 | 200,000 | 198,377 | ||||||
Sands China 144A 3.80% 1/8/26 # | 200,000 | 206,502 | ||||||
VF 2.40% 4/23/25 | 330,000 | 347,790 | ||||||
|
| |||||||
4,021,457 | ||||||||
|
| |||||||
Consumer Non-Cyclical – 6.15% | ||||||||
AbbVie 144A 2.60% 11/21/24 # | 2,915,000 | 3,106,027 | ||||||
Amgen 2.20% 2/21/27 | 1,385,000 | 1,462,647 | ||||||
Anheuser-Busch InBev Finance 3.30% 2/1/23 | 590,000 | 624,217 | ||||||
Anheuser-Busch InBev Worldwide 4.15% 1/23/25 | 2,965,000 | 3,366,525 |
9
Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Corporate Bonds (continued) | ||||||||
| ||||||||
Consumer Non-Cyclical (continued) | ||||||||
Cigna | ||||||||
2.109% (LIBOR03M + 0.89%) 7/15/23 • | 2,055,000 | $ | 2,066,301 | |||||
3.75% 7/15/23 | 935,000 | 1,015,672 | ||||||
CK Hutchison International 17 144A 2.875% 4/5/22 # | 275,000 | 282,177 | ||||||
Coca-Cola 1.45% 6/1/27 | 1,205,000 | 1,238,753 | ||||||
CVS Health 3.70% 3/9/23 | 2,845,000 | 3,058,081 | ||||||
Diageo Capital 1.375% 9/29/25 | 435,000 | 442,882 | ||||||
DP World Crescent 144A 3.908% 5/31/23 # | 200,000 | 208,280 | ||||||
Global Payments 2.65% 2/15/25 | 535,000 | 568,544 | ||||||
Kernel Holding 144A 8.75% 1/31/22 # | 235,000 | 243,580 | ||||||
Mondelez International | ||||||||
1.50% 5/4/25 | 1,210,000 | 1,234,575 | ||||||
2.125% 4/13/23 | 520,000 | 538,935 | ||||||
PayPal Holdings 1.35% 6/1/23 | 3,025,000 | 3,090,128 | ||||||
Tenet Healthcare 5.125% 5/1/25 | 200,000 | 193,242 | ||||||
Teva Pharmaceutical Finance Netherlands III 6.00% 4/15/24 | 250,000 | 257,456 | ||||||
Upjohn | ||||||||
144A 1.65% 6/22/25 # | 1,960,000 | 2,000,475 | ||||||
144A 2.30% 6/22/27 # | 80,000 | 82,720 | ||||||
US Foods 144A 6.25% 4/15/25 # | 248,000 | 253,425 | ||||||
|
| |||||||
25,334,642 | ||||||||
|
| |||||||
Electric – 5.53% | ||||||||
AEP Texas 2.40% 10/1/22 | 2,810,000 | 2,919,704 | ||||||
Ameren 2.70% 11/15/20 | 3,665,000 | 3,687,632 | ||||||
Avangrid 3.20% 4/15/25 | 505,000 | 552,461 | ||||||
Azure Power Energy 144A 5.50% 11/3/22 # | 215,000 | 217,397 | ||||||
Cleveland Electric Illuminating 5.50% 8/15/24 | 1,430,000 | 1,687,961 | ||||||
CLP Power Hong Kong Financing 2.875% 4/26/23 | 200,000 | 207,012 | ||||||
Duke Energy | ||||||||
1.80% 9/1/21 | 2,250,000 | 2,279,899 | ||||||
4.875%µy | 570,000 | 570,123 | ||||||
Engie Energia Chile 144A 4.50% 1/29/25 # | 200,000 | 216,502 | ||||||
Entergy 4.00% 7/15/22 | 1,050,000 | 1,114,890 | ||||||
Entergy Louisiana 4.05% 9/1/23 | 1,125,000 | 1,231,749 | ||||||
ITC Holdings 2.70% 11/15/22 | 1,570,000 | 1,638,062 | ||||||
NRG Energy 144A 3.75% 6/15/24 # | 1,200,000 | 1,269,145 | ||||||
NV Energy 6.25% 11/15/20 | 2,460,000 | 2,513,223 | ||||||
Pacific Gas and Electric 2.10% 8/1/27 | 980,000 | 970,269 | ||||||
Vistra Operations 144A 3.55% 7/15/24 # | 1,650,000 | 1,704,004 | ||||||
|
| |||||||
22,780,033 | ||||||||
|
|
10
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Corporate Bonds (continued) | ||||||||
| ||||||||
Energy – 2.82% | ||||||||
Cheniere Corpus Christi Holdings 7.00% 6/30/24 | 1,955,000 | $ | 2,226,514 | |||||
Continental Resources 3.80% 6/1/24 | 605,000 | 572,378 | ||||||
Energy Transfer Operating 5.25% 4/15/29 | 1,235,000 | 1,348,657 | ||||||
Greenko Mauritius 144A 6.25% 2/21/23 # | 210,000 | 210,775 | ||||||
KazMunayGas National 144A 4.40% 4/30/23 # | 200,000 | 208,500 | ||||||
Marathon Oil 2.80% 11/1/22 | 1,050,000 | 1,051,524 | ||||||
MPLX 4.875% 12/1/24 | 1,955,000 | 2,172,588 | ||||||
ONEOK 7.50% 9/1/23 | 1,655,000 | 1,895,178 | ||||||
Petrobras Global Finance 6.25% 3/17/24 | 260,000 | 277,875 | ||||||
Petroleos Mexicanos 4.625% 9/21/23 | 130,000 | 125,041 | ||||||
Sabine Pass Liquefaction 5.75% 5/15/24 | 955,000 | 1,076,006 | ||||||
Saudi Arabian Oil 144A 2.875% 4/16/24 # | 250,000 | 260,162 | ||||||
Tullow Oil 144A 6.25% 4/15/22 # | 250,000 | 183,204 | ||||||
|
| |||||||
11,608,402 | ||||||||
|
| |||||||
Finance Companies – 1.34% | ||||||||
Ally Financial 5.75% 11/20/25 | 350,000 | 374,338 | ||||||
Avolon Holdings Funding 144A 3.95% 7/1/24 # | 555,000 | 486,000 | ||||||
China Overseas Finance Cayman V 3.95% 11/15/22 | 205,000 | 215,481 | ||||||
GE Capital Funding 144A 3.45% 5/15/25 # | 485,000 | 508,468 | ||||||
International Lease Finance 8.625% 1/15/22 | 1,080,000 | 1,160,770 | ||||||
Mastercard 3.30% 3/26/27 | 165,000 | 187,125 | ||||||
SURA Asset Management 144A 4.875% 4/17/24 # | 500,000 | 534,177 | ||||||
USAA Capital 144A 1.50% 5/1/23 # | 2,000,000 | 2,052,815 | ||||||
|
| |||||||
5,519,174 | ||||||||
|
| |||||||
Insurance – 0.47% | ||||||||
AIA Group 3.125% 3/13/23 | 210,000 | 218,777 | ||||||
Equitable Holdings 3.90% 4/20/23 | 1,620,000 | 1,734,717 | ||||||
|
| |||||||
1,953,494 | ||||||||
|
| |||||||
Real Estate – 0.09% | ||||||||
Arabian Centres Sukuk 144A 5.375% 11/26/24 # | 200,000 | 177,100 | ||||||
Kaisa Group Holdings 9.375% 6/30/24 | 200,000 | 183,728 | ||||||
|
| |||||||
360,828 | ||||||||
|
| |||||||
Services – 0.08% | ||||||||
Prime Security Services Borrower 144A 5.25% 4/15/24 # | 127,000 | 130,188 | ||||||
Shimao Group Holdings 6.125% 2/21/24 | 200,000 | 211,500 | ||||||
|
| |||||||
341,688 | ||||||||
|
| |||||||
Technology – 0.40% | ||||||||
Broadcom | ||||||||
144A 3.15% 11/15/25 # | 260,000 | 276,380 | ||||||
144A 4.70% 4/15/25 # | 165,000 | 185,968 |
11
Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Corporate Bonds (continued) | ||||||||
| ||||||||
Technology (continued) | ||||||||
International Business Machines 3.00% 5/15/24 | 1,035,000 | $ | 1,121,422 | |||||
NXP 144A 2.70% 5/1/25 # | 55,000 | 57,865 | ||||||
|
| |||||||
1,641,635 | ||||||||
|
| |||||||
Transportation – 0.20% | ||||||||
Adani Ports & Special Economic Zone 144A 3.375% 7/24/24 # | 235,000 | 232,988 | ||||||
Aerovias de Mexico 144A 7.00% 2/5/25 #‡ | 200,000 | 47,500 | ||||||
ASG Finance Designated Activity 144A 7.875% 12/3/24 # | 217,000 | 154,070 | ||||||
Delta Air Lines 144A 7.00% 5/1/25 # | 375,000 | 387,495 | ||||||
|
| |||||||
822,053 | ||||||||
|
| |||||||
Total Corporate Bonds (cost $151,185,409) | 154,951,760 | |||||||
|
| |||||||
| ||||||||
Loan Agreements – 0.36% | ||||||||
| ||||||||
Air Medical Group Holdings 4.25% (LIBOR03M + 3.25%) 4/28/22 • | 77,507 | 74,794 | ||||||
Applied Systems 1st Lien 4.25% (LIBOR03M + 3.25%) 9/19/24 • | 248,157 | 242,883 | ||||||
AssuredPartners 3.678% (LIBOR01M + 3.50%) 2/12/27 • | 263,165 | 252,310 | ||||||
Berry Global Tranche W 2.177% (LIBOR01M + 2.00%) 10/1/22 • | 250,000 | 244,219 | ||||||
Blue Ribbon 1st Lien 5.00% (LIBOR01M + 4.00%) 11/15/21 • | 266,671 | 229,337 | ||||||
Charter Communications Operating Tranche B-2 1.93% (LIBOR01M + 1.75%) 2/1/27 • | 243,744 | 234,942 | ||||||
Gardner Denver Tranche B-1 1.928% (LIBOR01M + 1.75%) 3/1/27 • | 207,747 | 197,879 | ||||||
|
| |||||||
Total Loan Agreements (cost $1,547,977) | 1,476,364 | |||||||
|
| |||||||
| ||||||||
Non-Agency Asset-Backed Securities – 16.60% | ||||||||
| ||||||||
American Express Credit Account Master Trust | ||||||||
Series 2017-2 A 0.635% (LIBOR01M + 0.45%) 9/16/24 • | 270,000 | 271,046 | ||||||
Series 2017-5 A 0.565% (LIBOR01M + 0.38%) 2/18/25 • | 575,000 | 577,354 | ||||||
Series 2018-5 A 0.525% (LIBOR01M + 0.34%) 12/15/25 • | 3,744,000 | 3,740,753 | ||||||
Series 2018-6 A 3.06% 2/15/24 | 1,145,000 | 1,176,496 | ||||||
ARI Fleet Lease Trust | ||||||||
Series 2018-B A2 144A 3.22% 8/16/27 # | 588,078 | 595,064 | ||||||
BA Credit Card Trust | ||||||||
Series 2018-A3 A3 3.10% 12/15/23 | 700,000 | 719,710 |
12
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Non-Agency Asset-Backed Securities (continued) | ||||||||
| ||||||||
BMW Floorplan Master Owner Trust | ||||||||
Series 2018-1 A2 144A 0.505% (LIBOR01M + 0.32%) 5/15/23 #● | 1,500,000 | $ | 1,492,150 | |||||
Chase Issuance Trust | ||||||||
Series 2016-A3 A3 0.735% (LIBOR01M + 0.55%) 6/15/23 ● | 6,350,000 | 6,372,921 | ||||||
Series 2017-A2 A 0.585% (LIBOR01M + 0.40%) 3/15/24 ● | 1,300,000 | 1,304,071 | ||||||
Series 2018-A1 A1 0.385% (LIBOR01M + 0.20%) 4/17/23 ● | 1,500,000 | 1,501,187 | ||||||
Chesapeake Funding II | ||||||||
Series 2017-4A A2 144A 0.495% (LIBOR01M + 0.31%) 11/15/29 #● | 624,234 | 623,456 | ||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2016-A3 A3 0.665% (LIBOR01M + 0.49%) 12/7/23 ● | 4,270,000 | 4,291,202 | ||||||
Series 2018-A1 A1 2.49% 1/20/23 | 4,334,000 | 4,385,747 | ||||||
Series 2018-A2 A2 0.52% (LIBOR01M + 0.33%) 1/20/25 ● | 7,700,000 | 7,712,315 | ||||||
CNH Equipment Trust | ||||||||
Series 2019-A A2 2.96% 5/16/22 | 508,109 | 510,907 | ||||||
Discover Card Execution Note Trust | ||||||||
Series 2017-A7 A7 0.545% (LIBOR01M + 0.36%) 4/15/25 ● | 4,965,000 | 4,972,917 | ||||||
Series 2018-A2 A2 0.515% (LIBOR01M + 0.33%) 8/15/25 ● | 4,000,000 | 4,012,713 | ||||||
Series 2018-A3 A3 0.415% (LIBOR01M + 0.23%) 12/15/23 ● | 2,465,000 | 2,467,690 | ||||||
Ford Credit Auto Lease Trust | ||||||||
Series 2020-A A2 1.80% 7/15/22 | 1,470,000 | 1,483,972 | ||||||
Ford Credit Auto Owner Trust | ||||||||
Series 2017-C A3 2.01% 3/15/22 | 51,836 | 52,087 | ||||||
Ford Credit Floorplan Master Owner Trust A | ||||||||
Series 2017-2 A2 0.535% (LIBOR01M + 0.35%) 9/15/22 ● | 1,000,000 | 999,915 | ||||||
GreatAmerica Leasing Receivables Funding | ||||||||
Series 2019-1 A2 144A 2.97% 6/15/21 # | 510,554 | 512,993 | ||||||
Harley-Davidson Motorcycle Trust | ||||||||
Series 2020-A A2A 1.83% 1/17/23 | 850,000 | 855,125 | ||||||
HOA Funding | ||||||||
Series 2014-1A A2 144A 4.846% 8/20/44 # | 234,525 | 213,493 | ||||||
Hyundai Auto Lease Securitization Trust | ||||||||
Series 2018-A A3 144A 2.81% 4/15/21 # | 187,947 | 188,294 | ||||||
Hyundai Auto Receivables Trust | ||||||||
Series 2019-B A2 1.93% 7/15/22 | 685,434 | 690,288 |
13
Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Non-Agency Asset-Backed Securities (continued) | ||||||||
| ||||||||
Invitation Homes Trust | 1,221,300 | $ | 1,199,116 | |||||
Mercedes-Benz Auto Lease Trust | 304,982 | 306,455 | ||||||
Mercedes-Benz Master Owner Trust | 1,200,000 | 1,181,177 | ||||||
MMAF Equipment Finance | 1,259,219 | 1,278,152 | ||||||
Navistar Financial Dealer Note Master Owner Trust II | 330,000 | 328,792 | ||||||
Nissan Master Owner Trust Receivables | ||||||||
Series 2017-C A 0.505% (LIBOR01M + 0.32%) 10/17/22 ● | 890,000 | 889,575 | ||||||
Series 2019-A A 0.745% (LIBOR01M + 0.56%) 2/15/24 ● | 1,275,000 | 1,267,478 | ||||||
Series 2019-B A 0.615% (LIBOR01M + 0.43%) 11/15/23 ● | 300,000 | 298,260 | ||||||
PFS Financing | 910,000 | 904,298 | ||||||
Tesla Auto Lease Trust | ||||||||
Series 2018-B A 144A 3.71% 8/20/21 # | 1,080,760 | 1,096,338 | ||||||
Series 2019-A A2 144A 2.13% 4/20/22 # | 2,600,000 | 2,629,137 | ||||||
Towd Point Mortgage Trust | ||||||||
Series 2015-5 A1B 144A 2.75% 5/25/55 #● | 167,315 | 168,437 | ||||||
Series 2015-6 A1B 144A 2.75% 4/25/55 #● | 236,619 | 240,632 | ||||||
Toyota Auto Receivables Owner Trust | 121,138 | 121,149 | ||||||
Trafigura Securitisation Finance | 200,000 | 199,319 | ||||||
Verizon Owner Trust | ||||||||
Series 2017-3A A1A 144A 2.06% 4/20/22 # | 140,573 | 141,040 | ||||||
Series 2017-3A A1B 144A 0.46% (LIBOR01M + 0.27%) 4/20/22 #● | 1,314,358 | 1,314,995 | ||||||
Series 2019-B A1B 0.64% (LIBOR01M + 0.45%) 12/20/23 ● | 800,000 | 801,978 | ||||||
Volkswagen Auto Loan Enhanced Trust | 1,077 | 1,077 |
14
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Non-Agency Asset-Backed Securities (continued) | ||||||||
| ||||||||
Volvo Financial Equipment Master Owner Trust | 2,000,000 | $ | 1,998,792 | |||||
Wheels SPV 2 | 304,578 | 306,963 | ||||||
|
| |||||||
Total Non-Agency Asset-Backed Securities | 68,397,026 | |||||||
|
| |||||||
| ||||||||
Non-Agency Collateralized Mortgage Obligations – 0.56% | ||||||||
| ||||||||
GSMPS Mortgage Loan Trust | 21,486 | 21,423 | ||||||
JPMorgan Mortgage Trust | 427,879 | 433,234 | ||||||
Sequoia Mortgage Trust | 153,459 | 158,009 | ||||||
Silverstone Master Issuer | 1,680,000 | 1,672,679 | ||||||
Wells Fargo Mortgage-Backed Securities Trust | 41,324 | 38,371 | ||||||
|
| |||||||
Total Non-Agency Collateralized Mortgage Obligations (cost $2,299,933) | 2,323,716 | |||||||
|
| |||||||
| ||||||||
Non-Agency Commercial Mortgage-Backed Securities – 1.30% | ||||||||
| ||||||||
Benchmark Mortgage Trust | 5,000,000 | 5,237,796 | ||||||
DB-UBS Mortgage Trust | 100,000 | 100,592 | ||||||
|
| |||||||
Total Non-Agency Commercial Mortgage-Backed Securities (cost $5,352,055) |
| 5,338,388 | ||||||
|
| |||||||
| ||||||||
Sovereign Bonds – 0.67%D | ||||||||
| ||||||||
Croatia – 0.06% | ||||||||
Croatia Government International Bond 144A 5.50% 4/4/23 # | 200,000 | 220,642 | ||||||
|
| |||||||
�� | 220,642 | |||||||
|
| |||||||
Dominican Republic – 0.03% | ||||||||
Dominican Republic International Bond 144A 7.50% 5/6/21 # | 100,000 | 103,376 | ||||||
|
| |||||||
103,376 | ||||||||
|
| |||||||
Georgia – 0.05% | ||||||||
Georgia Government International Bond 6.875% 4/12/21 | 200,000 | 204,604 | ||||||
|
| |||||||
204,604 | ||||||||
|
|
15
Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Sovereign BondsD (continued) | ||||||||
| ||||||||
Indonesia – 0.08% | ||||||||
Indonesia Government International Bond 144A 3.375% 4/15/23 # | 310,000 | $ | 323,294 | |||||
|
| |||||||
323,294 | ||||||||
|
| |||||||
Kenya – 0.05% | ||||||||
Kenya Government International Bond 144A 6.875% 6/24/24 # | 200,000 | 203,735 | ||||||
|
| |||||||
203,735 | ||||||||
|
| |||||||
Nigeria – 0.06% | ||||||||
Nigeria Government International Bond 5.625% 6/27/22 | 250,000 | 253,691 | ||||||
|
| |||||||
253,691 | ||||||||
|
| |||||||
Republic of Korea – 0.12% | ||||||||
Export-Import Bank of Korea 1.125% (LIBOR03M + 0.775%) 6/1/23 ● | 500,000 | 501,669 | ||||||
|
| |||||||
501,669 | ||||||||
|
| |||||||
Saudi Arabia – 0.06% | ||||||||
Kingdom of Saudi Arabia Sukuk 144A 2.894% 4/20/22 # | 250,000 | 257,643 | ||||||
|
| |||||||
257,643 | ||||||||
|
| |||||||
Senegal – 0.05% | ||||||||
Senegal Government International Bond 144A 6.25% 7/30/24 # | 200,000 | 210,651 | ||||||
|
| |||||||
210,651 | ||||||||
|
| |||||||
Ukraine – 0.06% | ||||||||
Ukraine Government International Bond 144A 7.75% 9/1/20 # | 250,000 | 251,123 | ||||||
|
| |||||||
251,123 | ||||||||
|
| |||||||
Uzbekistan – 0.05% | ||||||||
Republic of Uzbekistan Bond 144A 4.75% 2/20/24 # | 200,000 | 211,250 | ||||||
|
| |||||||
211,250 | ||||||||
|
| |||||||
Total Sovereign Bonds (cost $2,734,631) | 2,741,678 | |||||||
|
| |||||||
| ||||||||
Supranational Bank – 0.12% | ||||||||
| ||||||||
Banque Ouest Africaine de Developpement 144A 5.50% 5/6/21 # | 500,000 | 512,870 | ||||||
|
| |||||||
Total Supranational Bank (cost $529,500) | 512,870 | |||||||
|
| |||||||
| ||||||||
US Treasury Obligations – 25.15% | ||||||||
| ||||||||
US Treasury Floating Rate Notes | ||||||||
0.264% (USBMMY3M + 0.114%) 4/30/22 ● | 32,055,000 | 32,079,593 | ||||||
0.304% (USBMMY3M + 0.154%) 1/31/22 ● | 13,315,000 | 13,334,544 | ||||||
US Treasury Notes | 25,515,000 | 25,634,104 |
16
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
US Treasury Obligations (continued) | ||||||||
| ||||||||
US Treasury Notes | ||||||||
0.625% 5/15/30 | 30,970,000 | $ | 30,880,478 | |||||
1.625% 12/31/21 | 1,640,000 | 1,675,939 | ||||||
|
| |||||||
Total US Treasury Obligations (cost $103,464,888) | 103,604,658 | |||||||
|
| |||||||
Number of shares | ||||||||
Preferred Stock – 0.34% | ||||||||
Morgan Stanley 5.55% µ | 1,180,000 | 1,084,658 | ||||||
USB Realty 144A 2.366% (LIBOR03M + 1.147%)#● | 400,000 | 319,698 | ||||||
|
| |||||||
Total Preferred Stock (cost $1,490,000) | 1,404,356 | |||||||
|
| |||||||
| ||||||||
Short-Term Investments – 3.45% | ||||||||
| ||||||||
Money Market Mutual Funds – 3.45% | ||||||||
BlackRock FedFund – Institutional Shares (seven-day effective yield 0.10%) | 2,845,863 | 2,845,863 | ||||||
Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 0.06%) | 2,845,863 | 2,845,863 | ||||||
GS Financial Square Government Fund – Institutional Shares (seven-day effective yield 0.15%) | 2,845,863 | 2,845,863 | ||||||
Morgan Stanley Government Portfolio – Institutional Share Class (seven-day effective yield 0.03%) | 2,845,863 | 2,845,863 | ||||||
State Street Institutional US Government Money Market Fund – Investor Class (seven-day effective yield 0.04%) | 2,845,863 | 2,845,863 | ||||||
|
| |||||||
14,229,315 | ||||||||
|
| |||||||
Total Short-Term Investments (cost $14,229,315) | 14,229,315 | |||||||
|
| |||||||
Total Value of Securities – 100.67% | $ | 414,749,743 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $60,247,649, which represents 14.62% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
◆ | Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes. |
T | PIK. 100% of the income received was in the form of cash. |
= | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
D | Securities have been classified by country of origin. |
17
Table of Contents
Schedule of investments
Delaware Limited-Term Diversified Income Fund |
µ | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at June 30, 2020. Rate will reset at a future date. |
y | No contractual maturity date. |
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at June 30, 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. |
f | Step coupon bond. Stated rate in effect at June 30, 2020 through maturity date. |
The following futures contracts were outstanding at June 30, 2020:1
Futures Contracts
Contracts to Buy (Sell) | Notional Amount | Notional (Proceeds) | Expiration Date | Value/ Unrealized Depreciation | Variation Margin Due from (Due to) Brokers | |||||
(70) US Treasury 5 yr Notes | $(8,801,953) | $ (8,782,646) | 9/30/20 | $ (19,307) | $ 2,188 |
The use of futures contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The notional amount presented above represents the Fund’s total exposure in such contracts, whereas only the variation margin is reflected in the Fund’s net assets.
1See Note 6 in “Notes to financial statements.”
Summary of abbreviations:
ARM – Adjustable Rate Mortgage
DAC – Designated Activity Company
DB – Deutsche Bank
FREMF – Freddie Mac Multifamily
GNMA – Government National Mortgage Association
GSMPS – Goldman Sachs Reperforming Mortgage Securities
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR01M – ICE LIBOR USD 1 Month
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LIBOR12M – ICE LIBOR USD 12 Month
NCUA – National Credit Union Administration
PIK – Pay-in-kind
18
Table of Contents
Summary of abbreviations (continued):
REMIC – Real Estate Mortgage Investment Conduit
S.F. – Single Family
TBA – To be announced
USBMMY3M – US Treasury 3 Month Bill Money Market Yield
USD – US Dollar
yr – Year
See accompanying notes, which are an integral part of the financial statements.
19
Table of Contents
Statement of assets and liabilities
Delaware Limited-Term Diversified Income Fund | June 30, 2020 (Unaudited) |
Assets: | ||||
Investments, at value1 | $414,749,743 | |||
Cash | 3,198,947 | |||
Cash collateral due from brokers | 53,900 | |||
Receivable for fund shares sold | 1,882,853 | |||
Dividends and interest receivable | 1,642,641 | |||
Receivable for securities sold | 498,164 | |||
Variation margin due from broker on futures contracts | 2,188 | |||
|
| |||
Total assets | 422,028,436 | |||
|
| |||
Liabilities: | ||||
Payable for securities purchased | 9,110,428 | |||
Payable for fund shares redeemed | 415,897 | |||
Other accrued expenses | 214,003 | |||
Distribution payable | 154,558 | |||
Investment management fees payable to affiliates | 54,263 | |||
Distribution fees payable to affiliates | 41,734 | |||
Audit and tax fees payable | 33,585 | |||
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 3,193 | |||
Trustees’ fees and expenses payable to affiliates | 3,057 | |||
Accounting and administration expenses payable to affiliates | 1,484 | |||
Legal fees payable to affiliates | 711 | |||
Reports and statements to shareholders expenses payable to affiliates | 686 | |||
|
| |||
Total liabilities | 10,033,599 | |||
|
| |||
Total Net Assets | $411,994,837 | |||
|
| |||
Net Assets Consist of: | ||||
Paid-in capital | $447,869,911 | |||
Total distributable earnings (loss) | (35,875,074 | ) | ||
|
| |||
Total Net Assets | $411,994,837 | |||
|
|
20
Table of Contents
Net Asset Value | ||||
Class A: | ||||
Net assets | $ | 138,934,882 | ||
Shares of beneficial interest outstanding, unlimited authorization, no par | 16,562,080 | |||
Net asset value per share | $ | 8.39 | ||
Sales charge | 2.75 | % | ||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ | 8.63 | ||
Class C: | ||||
Net assets | $ | 28,874,197 | ||
Shares of beneficial interest outstanding, unlimited authorization, no par | 3,444,743 | |||
Net asset value per share | $ | 8.38 | ||
Class R: | ||||
Net assets | $ | 1,241,883 | ||
Shares of beneficial interest outstanding, unlimited authorization, no par | 148,045 | |||
Net asset value per share | $ | 8.39 | ||
Institutional Class: | ||||
Net assets | $ | 238,481,887 | ||
Shares of beneficial interest outstanding, unlimited authorization, no par | 28,436,192 | |||
Net asset value per share | $ | 8.39 | ||
Class R6: | ||||
Net assets | $ | 4,461,988 | ||
Shares of beneficial interest outstanding, unlimited authorization, no par | 532,351 | |||
Net asset value per share | $ | 8.38 | ||
1 Investments, at cost | $ | 408,887,427 |
See accompanying notes, which are an integral part of the financial statements.
21
Table of Contents
Delaware Limited-Term Diversified Income Fund | Six months ended June 30, 2020 (Unaudited) |
Investment Income: | ||||
Interest | $ | 4,374,367 | ||
Dividends | 76,343 | |||
|
| |||
4,450,710 | ||||
|
| |||
Expenses: | ||||
Management fees | 1,027,233 | |||
Distribution expenses – Class A | 173,185 | |||
Distribution expenses – Class C | 162,284 | |||
Distribution expenses – Class R | 3,405 | |||
Dividend disbursing and transfer agent fees and expenses | 209,624 | |||
Registration fees | 55,225 | |||
Accounting and administration expenses | 54,846 | |||
Reports and statements to shareholders expenses | 35,287 | |||
Audit and tax fees | 27,584 | |||
Legal fees | 22,746 | |||
Trustees’ fees and expenses | 12,042 | |||
Custodian fees | 11,268 | |||
Other | 29,011 | |||
|
| |||
1,823,740 | ||||
Less waived distribution expenses – Class A | (69,274 | ) | ||
Less expenses waived | (681,782 | ) | ||
Less expenses paid indirectly | (2,661 | ) | ||
|
| |||
Total operating expenses | 1,070,023 | |||
|
| |||
Net Investment Income | 3,380,687 | |||
|
| |||
Net Realized and Unrealized Gain (Loss): | ||||
Net realized gain (loss) on: | ||||
Investments | 5,619,932 | |||
Futures contracts | (1,351,966 | ) | ||
Swap contracts | 248,273 | |||
|
| |||
Net realized gain | 4,516,239 | |||
|
| |||
Net change in unrealized appreciation (depreciation) of: | ||||
Investments | 842,728 | |||
Futures contracts | 16,195 | |||
Swap contracts | 1,511,685 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | 2,370,608 | |||
|
| |||
Net Realized and Unrealized Gain | 6,886,847 | |||
|
| |||
Net Increase in Net Assets Resulting from Operations | $ | 10,267,534 | ||
|
|
See accompanying notes, which are an integral part of the financial statements.
22
Table of Contents
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Table of Contents
Statements of changes in net assets
Delaware Limited-Term Diversified Income Fund
Six months | ||||||||
ended | ||||||||
6/30/20 | Year ended | |||||||
(Unaudited) | 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 3,380,687 | $ | 11,700,927 | ||||
Net realized gain (loss) | 4,516,239 | (1,982,015 | ) | |||||
Net change in unrealized appreciation (depreciation) | 2,370,608 | 10,584,393 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 10,267,534 | 20,303,305 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (1,599,757 | ) | (3,576,198 | ) | ||||
Class C | (242,036 | ) | (880,688 | ) | ||||
Class R | (13,429 | ) | (48,543 | ) | ||||
Institutional Class | (2,908,499 | ) | (6,691,457 | ) | ||||
Class R6 | (46,817 | ) | (57,680 | ) | ||||
Return of capital: | ||||||||
Class A | — | (519,147 | ) | |||||
Class C | — | (139,416 | ) | |||||
Class R | — | (5,977 | ) | |||||
Institutional Class | — | (940,821 | ) | |||||
Class R6 | — | (11,535 | ) | |||||
|
|
|
| |||||
(4,810,538 | ) | (12,871,462 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 19,698,574 | 37,064,126 | ||||||
Class C | 2,203,501 | 5,434,688 | ||||||
Class R | 190,390 | 512,146 | ||||||
Institutional Class | 42,507,267 | 120,185,353 | ||||||
Class R6 | 2,232,620 | 2,152,082 |
24
Table of Contents
Six months | ||||||||
ended | ||||||||
6/30/20 | Year ended | |||||||
(Unaudited) | 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | $ | 1,534,995 | $ | 3,877,071 | ||||
Class C | 236,705 | 941,340 | ||||||
Class R | 13,882 | 52,149 | ||||||
Institutional Class | 2,628,369 | 6,700,166 | ||||||
Class R6 | 45,498 | 67,441 | ||||||
|
|
|
| |||||
71,291,801 | 176,986,562 | |||||||
|
|
|
| |||||
Cost of shares redeemed: | ||||||||
Class A | (21,955,081 | ) | (73,497,716 | ) | ||||
Class C | (10,899,905 | ) | (34,653,775 | ) | ||||
Class R | (567,380 | ) | (1,768,338 | ) | ||||
Institutional Class | (59,457,466 | ) | (121,919,642 | ) | ||||
Class R6 | (961,326 | ) | (816,717 | ) | ||||
|
|
|
| |||||
(93,841,158 | ) | (232,656,188 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (22,549,357 | ) | (55,669,626 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (17,092,361 | ) | (48,237,783 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 429,087,198 | 477,324,981 | ||||||
|
|
|
| |||||
End of period | $ | 411,994,837 | $ | 429,087,198 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
25
Table of Contents
Delaware Limited-Term Diversified Income 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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Return of capital |
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 assets4 |
Ratio of expenses to average net assets prior to fees waived4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
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 waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
4 | 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.
26
Table of Contents
Six months ended 6/30/201 | Year ended | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
(Unaudited) | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 8.27 | $ | 8.14 | $ | 8.46 | $ | 8.48 | $ | 8.43 | $ | 8.52 | |||||||||||||||
0.07 | 0.21 | 0.20 | 0.16 | 0.12 | 0.11 | |||||||||||||||||||||
0.15 | 0.15 | (0.29 | ) | 0.02 | 0.08 | (0.06 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
0.22 | 0.36 | (0.09 | ) | 0.18 | 0.20 | 0.05 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.10 | ) | (0.20 | ) | (0.19 | ) | (0.15 | ) | (0.14 | ) | (0.13 | ) | |||||||||||||||
— | (0.03 | ) | (0.04 | ) | (0.05 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.10 | ) | (0.23 | ) | (0.23 | ) | (0.20 | ) | (0.15 | ) | (0.14 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 8.39 | $ | 8.27 | $ | 8.14 | $ | 8.46 | $ | 8.48 | $ | 8.43 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2.63% | 4.51% | (1.08% | ) | 2.11% | 2.42% | 0.62% | ||||||||||||||||||||
$ | 138,935 | $ | 137,798 | $ | 168,003 | $ | 382,353 | $ | 437,803 | $ | 439,310 | |||||||||||||||
0.54% | 0.54% | 0.60% | 0.74% | 0.81% | 0.83% | |||||||||||||||||||||
0.97% | 0.96% | 0.95% | 0.94% | 0.92% | 0.93% | |||||||||||||||||||||
1.63% | 2.58% | 2.46% | 1.95% | 1.36% | 1.29% | |||||||||||||||||||||
1.20% | 2.16% | 2.11% | 1.75% | 1.25% | 1.19% | |||||||||||||||||||||
119% | 123% | 130% | 151% | 124% | 94% |
27
Table of Contents
Financial highlights
Delaware Limited-Term Diversified Income 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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Return of capital |
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 assets5 |
Ratio of expenses to average net assets prior to fees waived5 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
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. |
4 | Total return during the period reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
5 | 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.
28
Table of Contents
Six months ended 6/30/201 | Year ended | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
(Unaudited) | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 8.27 | $ | 8.14 | $ | 8.45 | $ | 8.47 | $ | 8.42 | $ | 8.52 | |||||||||||||||
0.03 | 0.14 | 0.13 | 0.09 | 0.04 | 0.04 | |||||||||||||||||||||
�� | 0.14 | 0.15 | (0.28 | ) | 0.02 | 0.09 | (0.07 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
0.17 | 0.29 | (0.15 | ) | 0.11 | 0.13 | (0.03 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.06 | ) | (0.13 | ) | (0.12 | ) | (0.08 | ) | (0.07 | ) | (0.06 | ) | |||||||||||||||
— | (0.03 | ) | (0.04 | ) | (0.05 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.06 | ) | (0.16 | ) | (0.16 | ) | (0.13 | ) | (0.08 | ) | (0.07 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 8.38 | $ | 8.27 | $ | 8.14 | $ | 8.45 | $ | 8.47 | $ | 8.42 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2.07% | 4 | 3.63% | 4 | (1.80% | )4 | 1.25% | 4 | 1.55% | 4 | (0.35% | ) | |||||||||||||||
$ | 28,874 | $ | 36,977 | $ | 64,324 | $ | 89,456 | $ | 120,011 | $ | 141,739 | |||||||||||||||
1.39% | 1.39% | 1.45% | 1.59% | 1.66% | 1.68% | |||||||||||||||||||||
1.72% | 1.71% | 1.70% | 1.69% | 1.67% | 1.68% | |||||||||||||||||||||
0.77% | 1.73% | 1.61% | 1.10% | 0.51% | 0.44% | |||||||||||||||||||||
0.44% | 1.41% | 1.36% | 1.00% | 0.50% | 0.44% | |||||||||||||||||||||
119% | 123% | 130% | 151% | 124% | 94% |
29
Table of Contents
Financial highlights
Delaware Limited-Term Diversified Income Fund Class R |
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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Return of capital |
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 assets5 |
Ratio of expenses to average net assets prior to fees waived5 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
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. |
4 | Total return during the period reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
5 | 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.
30
Table of Contents
Six months ended 6/30/201 | Year ended | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
(Unaudited) | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 8.28 | $ | 8.14 | $ | 8.46 | $ | 8.48 | $ | 8.43 | $ | 8.52 | |||||||||||||||
0.05 | 0.18 | 0.18 | 0.14 | 0.09 | 0.08 | |||||||||||||||||||||
0.14 | 0.16 | (0.30 | ) | 0.01 | 0.08 | (0.06 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
0.19 | 0.34 | (0.12 | ) | 0.15 | 0.17 | 0.02 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.08 | ) | (0.17 | ) | (0.16 | ) | (0.12 | ) | (0.11 | ) | (0.10 | ) | |||||||||||||||
— | (0.03 | ) | (0.04 | ) | (0.05 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.08 | ) | (0.20 | ) | (0.20 | ) | (0.17 | ) | (0.12 | ) | (0.11 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 8.39 | $ | 8.28 | $ | 8.14 | $ | 8.46 | $ | 8.48 | $ | 8.43 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2.32% | 4 | 4.27% | 4 | (1.43% | )4 | 1.76% | 4 | 2.06% | 4 | 0.27% | ||||||||||||||||
$ | 1,242 | $ | 1,586 | $ | 2,753 | $ | 3,819 | $ | 4,984 | $ | 6,298 | |||||||||||||||
0.89% | 0.89% | 0.95% | 1.09% | 1.16% | 1.18% | |||||||||||||||||||||
1.22% | 1.21% | 1.20% | 1.19% | 1.17% | 1.18% | |||||||||||||||||||||
1.28% | 2.23% | 2.11% | 1.60% | 1.01% | 0.94% | |||||||||||||||||||||
0.95% | 1.91% | 1.86% | 1.50% | 1.00% | 0.94% | |||||||||||||||||||||
119% | 123% | 130% | 151% | 124% | 94% |
31
Table of Contents
Financial highlights
Delaware Limited-Term Diversified Income 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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Return of capital |
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 assets5 |
Ratio of expenses to average net assets prior to fees waived5 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
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. |
4 | Total return during the period reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
5 | 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.
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Six months ended 6/30/201 | Year ended | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
(Unaudited) | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 8.27 | $ | 8.14 | $ | 8.46 | $ | 8.47 | $ | 8.43 | $ | 8.52 | |||||||||||||||
0.07 | 0.23 | 0.22 | 0.18 | 0.13 | 0.12 | |||||||||||||||||||||
0.15 | 0.15 | (0.30 | ) | 0.02 | 0.07 | (0.06 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
0.22 | 0.38 | (0.08 | ) | 0.20 | 0.20 | 0.06 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.10 | ) | (0.22 | ) | (0.20 | ) | (0.16 | ) | (0.15 | ) | (0.14 | ) | |||||||||||||||
— | (0.03 | ) | (0.04 | ) | (0.05 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(0.10 | ) | (0.25 | ) | (0.24 | ) | (0.21 | ) | (0.16 | ) | (0.15 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 8.39 | $ | 8.27 | $ | 8.14 | $ | 8.46 | $ | 8.47 | $ | 8.43 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2.70% | 4 | 4.67% | 4 | (0.93% | )4 | 2.39% | 4 | 2.45% | 4 | 0.77% | ||||||||||||||||
$ | 238,482 | $ | 249,667 | $ | 240,614 | $ | 266,274 | $ | 377,595 | $ | 464,429 | |||||||||||||||
0.39% | 0.39% | 0.45% | 0.59% | 0.66% | 0.68% | |||||||||||||||||||||
0.72% | 0.71% | 0.70% | 0.69% | 0.67% | 0.68% | |||||||||||||||||||||
1.78% | 2.73% | 2.61% | 2.10% | 1.51% | 1.44% | |||||||||||||||||||||
1.45% | 2.41% | 2.36% | 2.00% | 1.50% | 1.44% | |||||||||||||||||||||
119% | 123% | 130% | 151% | 124% | 94% |
33
Table of Contents
Financial highlights
Delaware Limited-Term Diversified Income Fund Class R6 |
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 income3 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Return of capital |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets5 |
Ratio of expenses to average net assets prior to fees waived5 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Date of commencement of operations; ratios have been annualized and total return has not been annualized. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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. |
5 | Expense ratios do not include expenses of the Underlying Funds in which the Fund invests. |
6 | Portfolio turnover is representative of the Fund for the entire year. |
See accompanying notes, which are an integral part of the financial statements.
34
Table of Contents
Six months ended 6/30/201 | Year ended | 5/1/172 to | ||||||||||||||||
|
| |||||||||||||||||
(Unaudited) | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
|
| |||||||||||||||||
$ | 8.27 | $ | 8.14 | $ | 8.45 | $ | 8.50 | |||||||||||
0.08 | 0.23 | 0.22 | 0.12 | |||||||||||||||
0.13 | 0.15 | (0.28 | ) | (0.03 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
0.21 | 0.38 | (0.06 | ) | 0.09 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
(0.10 | ) | (0.22 | ) | (0.21 | ) | (0.09 | ) | |||||||||||
— | (0.03 | ) | (0.04 | ) | (0.05 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
(0.10 | ) | (0.25 | ) | (0.25 | ) | (0.14 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 8.38 | $ | 8.27 | 8.14 | 8.45 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
2.62% | 4.74% | (0.75% | ) | 1.10% | ||||||||||||||
$ | 4,462 | $ | 3,059 | $ | 1,631 | $ | 1,634 | |||||||||||
0.32% | 0.32% | 0.38% | 0.52% | |||||||||||||||
0.64% | 0.64% | 0.62% | 0.61% | |||||||||||||||
1.85% | 2.80% | 2.68% | 2.11% | |||||||||||||||
1.53% | 2.48% | 2.44% | 2.02% | |||||||||||||||
119% | 123% | 130% | 151% | 6 |
35
Table of Contents
Delaware Limited-Term Diversified Income Fund | June 30, 2020 (Unaudited) |
Delaware Group® Limited-Term Government Funds (Trust) is organized as a Delaware statutory trust and offers seven series: Delaware Limited-Term Diversified Income Fund, Delaware Tax-Exempt Income Fund, Delaware Tax-Exempt Opportunities Fund, Delaware Tax-Free California II Fund, Delaware Tax-Free New Jersey Fund, Delaware Tax-Free New York II Fund, and Delaware Tax-Free Oregon Fund. These financial statements pertain to Delaware Limited-Term Diversified Income Fund (Fund). The Fund is an open-end investment company. The Fund is considered diversified under the Investment Company Act of 1940, as amended, and offers Class A, Class C, Class R, Institutional Class, and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 2.75%. Class A share purchases of $1,000,000 or more will incur a limited contingent deferred sales charge (CDSC) instead of a front-end sales charge of 1.00% if redeemed during the first 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. Class R, Institutional Class, and Class R6 shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers or other financial intermediaries.
1. Significant Accounting Policies
The 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 Fund.
Security Valuation — Equity securities, except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security does not trade, the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. Debt securities and credit default swap (CDS) contracts are valued based upon valuations provided by an independent pricing service or broker/counterparty and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. US government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Open-end investment companies are valued at their published net asset value. For asset-backed securities, collateralized mortgage obligations, commercial mortgage securities, and US government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed; attributes of the collateral; yield or price of bonds of comparable quality, coupon, maturity, and type as well as broker/dealer-supplied prices. Swap prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades, and values of the underlying reference instruments. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Trust’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as
36
Table of Contents
market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Board.
Federal and Foreign Income Taxes — No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken or expected to be taken on the Fund’s federal income tax returns through the six months ended June 30, 2020 and for all open tax years (years ended Dec. 31, 2017–Dec. 31, 2019), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of the Fund. If applicable, the Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statement of operations.” During the six months ended June 30, 2020, the Fund did not incur any interest or tax penalties.
Class Accounting — Investment income and common expenses are allocated to the various classes of the Fund on the basis of “settled shares” of each class in relation to the net assets of the Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class. Class R6 shares are not allocated any expenses related to service fees, sub-accounting fees, and/or sub-transfer agency fees paid to brokers, dealers, or financial intermediaries.
To Be Announced Trades — The Fund may contract to purchase or sell securities for a fixed price at a transaction date beyond the customary settlement period (examples: when issued, delayed delivery, forward commitment, or TBA transactions) consistent with the Fund’s ability to manage its investment portfolio and meet redemption requests. These transactions involve a commitment by the Fund to purchase or deliver securities for a predetermined price or yield with payment and delivery taking place more than three days in the future, or after a period longer than the customary settlement period for that type of security. No interest will be earned by the Fund on such purchases until the securities are delivered or the transaction is completed; however, the market value may change prior to delivery.
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 the Fund are charged directly to the 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
37
Table of Contents
Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
1. Significant Accounting Policies (continued)
on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and 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. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. The 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. The Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
The 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 “Statement of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended June 30, 2020, the Fund earned $2,432 under this arrangement.
The 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 “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended June 30, 2020, the Fund earned $229 under this arrangement.
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its investment management agreement, the 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 at the rates of 0.50% on the first $500 million of average daily net assets of the Fund, 0.475% on the next $500 million, 0.45% on the next $1.5 billion, and 0.425% on average daily net assets in excess of $2.5 billion.
DMC has contractually agreed to waive all or a portion, if any, of its management fee and/or pay/reimburse the 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, 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 0.39% of the Fund’s average daily net assets for all share classes other than Class R6 and 0.32% of the Fund’s average daily net assets of the Class R6 shares from Jan. 1, 2020 through June 30, 2020.* For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by the Board and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Fund and may only be terminated by agreement of DMC and the Fund. The waivers and reimbursements are accrued daily and received monthly.
DMC may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Europe Limited, Macquarie Investment Management Austria Kapitalanlage AG, and
38
Table of Contents
Macquarie Investment Management Global Limited (together, the “Affiliated Sub-Advisors”). The Manager may also permit these Affiliated Sub-Advisors to execute Fund security trades on behalf of the Manager and exercise investment discretion for securities in certain markets where DMC believes it will be beneficial to utilize an Affiliated Sub-Advisor’s specialized market knowledge. Although the Affiliated Sub-Advisors serve as sub-advisors, DMC has ultimate responsibility for all investment advisory services. For these services, DMC, not the Fund, pays each Affiliated Sub-Advisor a portion of its investment management fee.
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to the 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. This amount is included on the “Statement of operations” under “Accounting and administration expenses.” For the six months ended June 30, 2020, the Fund was charged $9,052 for these services.
DIFSC is also the transfer agent and dividend disbursing agent of the 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; 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. This amount is included on the “Statement of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended June 30, 2020, the Fund was charged $19,284 for these services.
Pursuant to a distribution agreement and distribution plan, the Fund pays DDLP, the distributor and an affiliate of DMC, an annual 12b-1 fee of 0.25%, 1.00%, and 0.50% of the average daily net assets of the Class A, Class C, and Class R shares, respectively. The fees are calculated daily and paid monthly. DDLP has contractually agreed to waive Class A shares’ 12b-1 fee to 0.15% of average daily net assets from Jan. 1, 2020 through June 30, 2020.** The waiver is calculated daily and received monthly. Institutional Class and Class R6 shares do not pay 12b-1 fees.
As provided in the investment management agreement, the 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 Fund. For the six months ended June 30, 2020, the Fund was charged $6,145 for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees. This amount is included on the “Statement of operations” under “Legal fees.”
For the six months ended June 30, 2020, DDLP earned $328 for commissions on sales of the Fund’s Class A shares. For the six months ended June 30, 2020, DDLP received gross CDSC commissions of $492 on redemptions of the Fund’s Class C shares and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares.
39
Table of Contents
Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Trustees’ fees include expenses accrued by the 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 Fund.
In addition to the management fees and other expenses of the Fund, the 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 the 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 May 1, 2019 through April 30, 2021 for all classes.
**The aggregate contractual waiver period covering this report is from May 1, 2019 through April 30, 2021.
3. Investments
For the six months ended June 30, 2020, the Fund made purchases and sales of investment securities other than short-term investments as follows:
Purchases other than US government securities | $ | 93,545,468 | ||
Purchases of US government securities | 379,842,847 | |||
Sales other than US government securities | 152,519,649 | |||
Sales of US government securities | 319,890,237 |
At June 30, 2020, the cost and unrealized appreciation (depreciation) of investments and derivatives for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At June 30, 2020, the cost and unrealized appreciation (depreciation) of investments and derivatives for the Fund were as follows:
Cost of investments and derivatives | $ | 411,132,867 | ||
|
| |||
Aggregate unrealized appreciation of investments and derivatives | $ | 6,148,548 | ||
Aggregate unrealized depreciation of investments and derivatives | (2,550,979 | ) | ||
|
| |||
Net unrealized appreciation of investments and derivatives | $ | 3,597,569 | ||
|
|
40
Table of Contents
At December 31, 2019 the Fund had capital loss carryforwards available to offset future realized capital gains as follows:
Loss carryforward character | ||||
Short-term | Long-term | Total | ||
$19,422,994 | $23,304,277 | $42,727,271 |
US GAAP defines fair value as the price that the 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. The 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 below.
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 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 the 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. The 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.
41
Table of Contents
Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
3. Investments (continued)
The table below summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of June 30, 2020.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Securities | ||||||||||||||||
Assets: | ||||||||||||||||
Agency, Asset- & Mortgage- Backed Securities1 | $ | — | $ | 134,552,198 | $ | 1,239,000 | $ | 135,791,198 | ||||||||
Corporate Debt | — | 154,989,304 | — | 154,989,304 | ||||||||||||
Foreign Debt | — | 3,254,548 | — | 3,254,548 | ||||||||||||
Loan Agreements | — | 1,476,364 | — | 1,476,364 | ||||||||||||
US Treasury Obligation | — | 103,604,658 | — | 103,604,658 | ||||||||||||
Preferred Stock | — | 1,404,356 | — | 1,404,356 | ||||||||||||
Short-Term Investments | 14,229,315 | — | — | 14,229,315 | ||||||||||||
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| |||||||||
Total Value of Securities | $ | 14,229,315 | $ | 399,281,428 | $ | 1,239,000 | $ | 414,749,743 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivatives2 | ||||||||||||||||
Liabilities: | ||||||||||||||||
Futures Contracts | $ | (19,307 | ) | $ | — | $ | — | $ | (19,307 | ) |
1Security type is valued across multiple levels. Level 2 investments represent investments with observable inputs, or matrix-price investments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 2 investments and Level 3 investments represent the following percentages of the total market value of this security type:
Level 2 | Level 3 | Total | ||||||||||||||
Agency, Asset- & Mortgage- Backed Securities | 99.09 | % | 0.91 | % | 100.00 | % |
2Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument at the period end.
During the six months ended June 30, 2020, there were no transfers into or out of Level 3 investments. The 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.
A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to the Fund’s net assets. Management has determined not to provide a reconciliation of Level 3 investments as the Level 3 investments were not considered significant to the Fund’s net assets at the beginning, interim, or end of the period. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments are not considered significant to the Fund’s net assets at the end of the period.
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4. Capital Shares
Transactions in capital shares were as follows:
Six months 6/30/20 | Year ended 12/31/19 | |||||||
Shares sold: | ||||||||
Class A | 2,376,562 | 4,503,964 | ||||||
Class C | 265,563 | 660,861 | ||||||
Class R | 22,921 | 62,094 | ||||||
Institutional Class | 5,128,195 | 14,608,756 | ||||||
Class R6 | 272,926 | 260,643 | ||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 185,915 | 469,761 | ||||||
Class C | 28,717 | 114,873 | ||||||
Class R | 1,681 | 6,328 | ||||||
Institutional Class | 318,401 | 812,809 | ||||||
Class R6 | 5,511 | 8,176 | ||||||
|
|
|
| |||||
8,606,392 | 21,508,265 | |||||||
|
|
|
| |||||
Shares redeemed: | ||||||||
Class A | (2,653,164 | ) | (8,954,747 | ) | ||||
Class C | (1,321,623 | ) | (4,208,592 | ) | ||||
Class R | (68,274 | ) | (214,824 | ) | ||||
Institutional Class | (7,189,266 | ) | (14,800,280 | ) | ||||
Class R6 | (116,088 | ) | (99,260 | ) | ||||
|
|
|
| |||||
(11,348,415 | ) | (28,277,703 | ) | |||||
|
|
|
| |||||
Net decrease | (2,742,023 | ) | (6,769,438 | ) | ||||
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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 table above and on the “Statements of changes in net assets.” For the six months ended June 30, 2020 and year ended Dec. 31, 2019, the Fund had the following exchange transactions:
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||
Institutional | ||||||||||||||||||||
Class A Shares | Class C Shares | Class A Shares | Class Shares | Value | ||||||||||||||||
Six months ended 6/30/20 | 10,154 | 51,055 | 50,959 | 10,251 | $ | 506,820 | ||||||||||||||
Year ended 12/31/19 | 16,248 | 67,900 | 66,237 | 17,926 | 695,642 |
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Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
5. Line of Credit
Prior to May 6, 2020, the Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $250,000,000 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. The revolving line of credit available was increased from $250,000,000 to $275,000,000 on May 6, 2020. Under the agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants are permitted to borrow up to a maximum of one-third of their net assets under the agreement. Each Participant is individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the agreement expires on Nov. 2, 2020.
The Fund had no amounts outstanding as of June 30, 2020 or at any time during the period then ended.
6. Derivatives
US GAAP requires disclosures that enable investors to understand: (1) how and why an entity uses derivatives, (2) how they are accounted for, and (3) how they affect an entity’s results of operations and financial position.
Futures Contracts — A futures contract is an agreement in which the writer (or seller) of the contract agrees to deliver to the buyer an amount of cash or securities equal to a specific dollar amount times the difference between the value of a specific security or index at the close of the last trading day of the contract and the price at which the agreement is made. The Fund may use futures contracts in the normal course of pursuing its investment objective. The Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions. Upon entering into a futures contract, the Fund deposits cash or pledges US government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is reduced counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. At June 30, 2020, the Fund posted $53,900 in cash as margin for open futures contracts, which is included in “Cash collateral due from brokers” on the “Statement of assets and liabilities.”
During the six months ended June 30, 2020, the Fund used futures contracts to hedge its existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions.
Swap Contracts — The Fund may enter into CDS contracts in the normal course of pursuing its investment objective. The Fund may enter into CDS contracts in order to hedge against credit events, to enhance total return, or to gain exposure to certain securities or markets. The Fund will not be permitted
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to enter into any swap transactions unless, at the time of entering into such transactions, the unsecured long-term debt of the actual counterparty, combined with any credit enhancements, is rated at least BBB- by Standard & Poor’s Financial Services LLC (S&P) or Baa3 by Moody’s Investors Service, Inc. (Moody’s) or is determined to be of equivalent credit quality by DMC.
Credit Default Swaps. A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the reference security (or basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.
During the six months ended June 30, 2020, the Fund entered into CDS contracts as a purchaser of protection. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement. Initial margin and variation margin are posted to central counterparties for CDS basket trades, as determined by the applicable central counterparty. For the six months ended June 30, 2020, the Fund did not enter into any CDS contracts as a seller of protection.
At June 30, 2020, the Fund had no open CDS contracts.
CDS contracts may involve greater risks than if the Fund had invested in the reference obligation directly. CDS contracts are subject to general market risk, liquidity risk, counterparty risk, and credit risk. The Fund’s maximum risk of loss from counterparty credit risk, either as the seller of protection or the buyer of protection, is the fair value of the contract. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty or (2) for cleared swaps, trading these instruments through a central counterparty.
During the six months ended June 30, 2020, the Fund used CDS contracts to hedge against credit events.
Swaps Generally. The value of open swaps may differ from that which would be realized in the event the Fund terminated its position in the contract on a given day. Risks of entering into these contracts include the potential inability of the counterparty to meet the terms of the contracts. This type of risk is generally limited to the amount of favorable movement in the value of the underlying security, instrument, or basket of instruments, if any, at the day of default. Risks also arise from potential losses from adverse market movements and such losses could exceed the unrealized amounts that would be shown on the
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Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
6. Derivatives (continued)
“Schedule of investments.” For centrally cleared swaps, payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Fair value of derivative instruments as of June 30, 2020 was as follows:
Liability Derivatives Fair Value | ||
Statement of Assets and Liabilities Location | Interest Rate Contracts | |
Variation margin due to broker on futures contracts* | $19,307 |
*Includes cumulative appreciation (depreciation) of futures contracts from the date the contracts are opened through June 30, 2020. Only current day variation margin is reported on the “Statement of assets and liabilities.”
The effect of derivative instruments on the “Statement of operations” for the six months ended June 30, 2020 was as follows:
Net Realized Gain (Loss) on: | ||||||||||||
Futures Contracts | Swap Contracts | Total | ||||||||||
Interest rate contracts | $ | (1,351,966 | ) | $ | — | $ | (1,351,966 | ) | ||||
Credit contracts | — | 248,273 | 248,273 | |||||||||
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|
|
|
| |||||||
Total | $ | (1,351,966 | ) | $ | 248,273 | $ | (1,103,693 | ) | ||||
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|
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|
| |||||||
Net Change in Unrealized Appreciation (Depreciation) of: | ||||||||||||
Futures Contracts | Swap Contracts | Total | ||||||||||
Interest rate contracts | $ | 16,195 | $ | — | $ | 16,195 | ||||||
Credit contracts | — | 1,511,685 | 1,511,685 | |||||||||
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| |||||||
Total | $ | 16,195 | $ | 1,511,685 | $ | 1,527,880 | ||||||
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|
|
|
|
Derivatives Generally. The table below summarizes the average balance of derivative holdings by the Fund during the six months ended June 30, 2020.
Long Derivatives Volume | Short Derivatives Volume | |||||||
Futures contracts (average notional value) | USD 3,458,782 | USD 13,227,060 | ||||||
CDS contracts (average notional value)* | 9,520,400 | — |
*Long represents buying protection and short represents selling protection.
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7. Securities Lending
The Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day, the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by each fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; and asset-backed securities. A fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Fund, the security lending agent, and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower.
The Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those
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Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
7. Securities Lending (continued)
circumstances, the value of the Fund’s cash collateral account may be less than the amount the Fund would be required to return to the borrowers of the securities and the Fund would be required to make up for this shortfall.
During the six months ended June 30, 2020, the Fund had no securities out on loan.
8. Credit and Market Risk
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 Fund’s 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.
The risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.
Some countries in which the Fund may invest require governmental approval for the repatriation of investment income, capital, or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller, less liquid, and more volatile than the major securities markets in the US. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund.
The Fund invests a portion of its assets in high-yield fixed income securities, which are securities rated lower than BBB- by S&P and Baa3 by 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.
The Fund invests in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are
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collateralized mortgage obligations (CMOs). CMOs are debt securities issued by US government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligations and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse effect on the Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.
The 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 Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of the security.
The Fund invests in bank loans and other securities that may subject it to direct indebtedness risk, the risk that the Fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower. Loans that are fully secured offer the Fund more protection than unsecured loans in the event of nonpayment of scheduled interest or principal, although there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated. Some loans or claims may be in default at the time of purchase. Certain of the loans and the other direct indebtedness acquired by the Fund may involve revolving credit facilities or other standby financing commitments that obligate the Fund to pay additional cash on a certain date or on demand. These commitments may require the Fund to increase its investment in a company at a time when the Fund might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that the Fund is committed to advance additional funds, it will at all times hold and maintain cash or other high-grade debt obligations in an amount sufficient to meet such commitments. When a loan agreement is purchased the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by the borrower. Prepayment penalty, facility, commitment, consent, and amendment fees are recorded to income as earned or paid.
As the Fund may be required to rely upon another lending institution to collect and pass on to the Fund amounts payable with respect to the loan and to enforce the Fund’s rights under the loan and other direct indebtedness, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Fund from receiving such amounts. The highly leveraged nature of many loans may make them especially vulnerable to adverse changes in economic or market conditions. Investments in such loans and other direct indebtedness may involve additional risk to the Fund.
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Notes to financial statements
Delaware Limited-Term Diversified Income Fund |
8. Credit and Market Risk (continued)
The 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 the 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, the Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund’s 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 Fund’s 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedule of investments.”
9. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
10. Recent Accounting Pronouncements
In March 2017, the FASB issued an 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 Dec. 15, 2018. Management has implemented ASU 2017-08 and determined that the impact of this guidance to the Fund’s net assets at the end of the period is not material.
In August 2018, the 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 Dec. 15, 2019. Management has implemented ASU 2018-13 on the financial statements.
In March 2020, the 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 provides 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 Dec. 31, 2022. Management is currently evaluating the impact, if any, of applying this ASU.
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11. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to June 30, 2020, that would require recognition or disclosure in the Fund’s financial statements.
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Other Fund information (Unaudited)
Delaware Limited-Term Diversified Income Fund |
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 Fund has 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 the 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 the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments if, immediately after the acquisition, the 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 the Fund’s holdings of Illiquid assets exceed 15% of the 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 the Fund’s liquidity risk, the Program Administrator considers, as relevant, a variety of factors, including: (1) the 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 Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. Classification of the 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. The 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 the Fund’s liquidity needs. The Fund’s HLIM is set at an appropriate level and the Fund complied with its HLIM at all times during the reporting period.
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Board of trustees
Shawn K. Lytle
President and
Chief Executive Officer
Delaware Funds®
by Macquarie
Philadelphia, PA
Thomas L. Bennett
Chairman of the Board
Delaware Funds
by Macquarie
Private Investor
Rosemont, PA
Jerome D. Abernathy
Managing Member
Stonebrook Capital
Management, LLC
Jersey City, NJ
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 semiannual report is for the information of Delaware Limited-Term Diversified Income 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.
The 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. The Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Fund uses 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 Fund uses to determine how to vote proxies (if any) relating to portfolio securities and the Schedule of Investments included in the Fund’s most recent Form N-PORT are available without charge on the Fund’s website at delawarefunds.com/literature. The 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 Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Fund’s website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
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Delaware Funds® by Macquarie privacy practices notice
We are committed to protecting the privacy of our potential, current, and former customers. To provide the products and services you request, we must collect personal information about you. We do not sell your personal information to third parties. We collect your personal information and share it with third parties as necessary to provide you with the products or services you request and to administer your business with us. This notice describes our current privacy practices. While your relationship with us continues, we will update and send our privacy practices notice as required by law. We are committed to continuing to protect your personal information even after that relationship ends. You do not need to take any action because of this notice.
Information we may collect and use
We collect personal information about you to help us identify you as our potential, current, or former customer; to process your requests and transactions; to offer investment services to you; or to tell you about our products or services we believe you may want to use. The type of personal information we collect depends on the products or services you request and may include the following:
• Information from you: When you submit your application or other forms or request information on our products (online or otherwise), you give us information such as your name, address, Social Security number, and your financial history.
• Information about your transactions: We keep information about your transactions with us, such as the products you buy from us; the amount you paid for those products; your investment activity; and your account balances.
• Information from your employer: In connection with administering your retirement plan, we may obtain information about you from your employer.
• Information received from third parties: In order to verify your identity or to prevent fraud, we may obtain information about you from third parties.
How we use your personal information
We do not disclose nonpublic personal information about our potential, current, and former customers unless allowed or required by law. We may share your personal information within our companies and with certain service
providers. They use this information to process transactions you have requested; provide customer service; and inform you of products or services we offer that you may find useful. Our service providers may or may not be affiliated with us. They include financial service providers (for example, third-party administrators; broker/dealers; and other financial services companies with whom we have joint marketing agreements). Our service providers also include nonfinancial companies and individuals (for example, consultants; information services vendors; and companies that perform mailing or marketing services on our behalf). Information obtained from a report prepared by a service provider may be kept by the service provider and shared with other persons; however, we require our service providers to protect your personal information and to use or disclose it only for the work they are performing for us, or as permitted by law.
We also may provide information to regulatory authorities, law enforcement officials, and others to prevent fraud or when we believe in good faith that the law requires disclosure. In the event of a sale of all or part of our businesses, we may share customer information as part of the sale. We do not sell or share your information with outside marketers who may want to offer you their own products and services.
Security of information
Keeping your information safe is one of our most important responsibilities. We maintain physical, electronic, and procedural safeguards to protect your information. Our employees are authorized to access your information only when they need it to provide you with products and services or to
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maintain your accounts. Employees who have access to your personal information are required to keep it strictly confidential. We provide training to our employees about the importance of protecting the privacy of your information.
Macquarie Investment Management (MIM), a member of Macquarie Group, refers to the companies comprising the asset management division of Macquarie Group. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
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.
This privacy practices notice is being provided on behalf of the following:
Delaware Capital Management
Delaware Capital Management Advisers, Inc.
Delaware Distributors, Inc.
Delaware Distributors, L.P.
Delaware Funds by Macquarie
Delaware Enhanced Global Dividend and Income Fund
Delaware Group® Adviser Funds
Delaware Group Cash Reserve
Delaware Group Equity Funds I
Delaware Group Equity Funds II
Delaware Group Equity Funds IV
Delaware Group Equity Funds V
Delaware Group Foundation Funds
Delaware Group Global & International Funds
Delaware Group Government Fund
Delaware Group Income Funds
Delaware Group Limited-Term Government Funds
Delaware Group State Tax-Free Income Trust
Delaware Group Tax-Free Fund
Delaware Investments® Colorado Municipal Income Fund, Inc.
Delaware Investments Dividend and Income Fund, Inc.
Delaware Investments Minnesota Municipal Income Fund II, Inc.
Delaware Investments National Municipal Income Fund
Delaware Pooled® Trust
Delaware VIP® Trust
Voyageur Insured Funds
Voyageur Intermediate Tax Free Funds
Voyageur Mutual Funds
Voyageur Mutual Funds II
Voyageur Mutual Funds III
Voyageur Tax Free Funds
Delaware Investments Advisers Partner, Inc.
Delaware Investments Distribution Partner, Inc.
Delaware Investments Fund Advisers
Delaware Investments Fund Services Company
Delaware Investments Management Company, LLC
Delaware Management Company
Delaware Management Trust Company
Delaware Service Company, Inc.
Four Corners Capital Management, LLC
Macquarie Absolute Return MBS Fund, LP
Macquarie Absolute Return MBS Fund
Macquarie Alternative Strategies
Macquarie Allegiance Capital, LLC
Macquarie Asset Advisers
Macquarie Emerging Markets Small Cap Fund, LLC
Macquarie Funds Management Hong Kong Limited
Macquarie Global Infrastructure Total Return Fund Inc.
Macquarie Investment Management Advisers
Macquarie Investment Management Austria Kapitalanlage AG
Macquarie Investment Management Business Trust
Macquarie Investment Management Europe Limited
Macquarie Investment Management Europe S.A.
Macquarie Investment Management General Partner, Inc.
Macquarie Investment Management Global Limited
Macquarie Multi-Cap Growth Fund, LP
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Delaware Funds® by Macquarie privacy practices notice
Macquarie Real Estate Absolute Return Partners, Inc.
Macquarie Total Return Fund Inc.
Optimum Fund Trust
Retirement Financial Services, Inc.
Revised February 2020
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Delaware Funds® by Macquarie
Equity funds
US equity funds
● | Delaware Equity Income Fund |
(formerly, First Investors Equity Income Fund)1
● | Delaware Growth and Income Fund |
(formerly, First Investors Growth & Income Fund)1
● | Delaware Growth Equity Fund |
(formerly, First Investors Select Growth Fund)1
● | Delaware Mid Cap Value Fund |
● | Delaware Opportunity Fund |
(formerly, First Investors Opportunity Fund)1
● | Delaware Select Growth Fund2 |
● | Delaware Small Cap Core Fund3 |
● | Delaware Small Cap Growth Fund |
● | Delaware Small Cap Value Fund |
● | Delaware Smid Cap Growth Fund |
● | Delaware Special Situations Fund |
(formerly, First Investors Special Situations Fund)1
● Delaware U.S. Growth Fund
● Delaware Value® Fund
Global / international equity funds
● Delaware Emerging Markets Fund
● Delaware Global Equity Fund
(formerly, First Investors Global Fund)1
● Delaware International Fund
(formerly, First Investors International Fund)1
● Delaware International Small Cap Fund
● Delaware International Value Equity Fund
Alternative / specialty funds
● Delaware Covered Call Strategy Fund
(formerly, First Investors Covered Call Strategy Fund)1
● Delaware Healthcare Fund
● Delaware Hedged U.S. Equity Opportunities Fund
(formerly, First Investors Hedged U.S. Equity Opportunities Fund)1
● Delaware Premium Income Fund
(formerly, First Investors Premium Income Fund)1
Multi-asset funds
● Delaware Global Listed Real Assets Fund
(formerly, Delaware REIT Fund)4
● Delaware Strategic Allocation Fund
(formerly, Delaware Foundation® Moderate Allocation Fund)
● Delaware Total Return Fund
(formerly, First Investors Total Return Fund)1
● Delaware Wealth Builder Fund
1On April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), a leading global investment management company, whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (Macquarie), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund (each, an “Acquiring Fund,” and collectively, the “Acquiring Funds”) in the Delaware Funds® by Macquarie family of funds (each, a “Reorganization” and together, the “Reorganizations”). Following the requisite approval of each Reorganization from shareholders of each First Investors Fund, each Acquiring Fund is managed by DMC and each Acquiring Fund has the same or substantially the same investment objective and the same or similar principal investment strategies and principal risks as the corresponding First Investors Fund. The Transaction closed on Oct. 4, 2019 (the “Closing Date”). Information, including without limitation historical holdings and performance information, relating to the Acquiring Funds for periods prior to the Closing Date has been provided by FIMCO and is attributable to the Acquired Funds.
Carefully consider a Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in each Fund’s prospectus and, if available, its summary prospectus. A Delaware Funds by Macquarie prospectus may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
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Fixed income funds
Taxable fixed income funds
● Delaware Corporate Bond Fund
● Delaware Diversified Income Fund
● Delaware Emerging Markets Debt Corporate Fund
(formerly, Delaware Emerging Markets Debt Fund)
● Delaware Extended Duration Bond Fund
● Delaware Floating Rate Fund
● Delaware Floating Rate II Fund
(formerly, First Investors Floating Rate Fund)1
● Delaware Fund for Income
(formerly, First Investors Fund For Income)1
● Delaware Government Cash Management Fund
(formerly, First Investors Government Cash Management Fund)1,5
● Delaware High-Yield Opportunities Fund
● Delaware International Opportunities Bond Fund
(formerly, First Investors International Opportunities Bond Fund)1
● Delaware Investment Grade Fund
(formerly, First Investors Investment Grade Fund)1
● Delaware Investments Ultrashort Fund
● Delaware Limited Duration Bond Fund
(formerly, First Investors Limited Duration Bond Fund)1
● Delaware Limited-Term Diversified Income Fund
● Delaware Strategic Income Fund
● Delaware Strategic Income II Fund
(formerly, First Investors Strategic Income Fund)1
Municipal fixed income funds
● Delaware Minnesota High-Yield Municipal Bond Fund
● Delaware National High-Yield Municipal Bond Fund
● Delaware Tax-Exempt Income Fund
(formerly, First Investors Tax Exempt Income Fund)1
● Delaware Tax-Exempt Opportunities Fund
(formerly, First Investors Tax Exempt Opportunities Fund)1
● Delaware Tax-Free Arizona Fund
● Delaware Tax-Free California Fund
● Delaware Tax-Free California II Fund
(formerly, First Investors California Tax Exempt Fund)1
● Delaware Tax-Free Colorado Fund
● Delaware Tax-Free Idaho Fund
● Delaware Tax-Free Minnesota Fund
● Delaware Tax-Free Minnesota Intermediate Fund
● Delaware Tax-Free New Jersey Fund
(formerly, First Investors New Jersey Tax Exempt Fund)1
● Delaware Tax-Free New York Fund
● Delaware Tax-Free New York II Fund
(formerly, First Investors New York Tax Exempt Fund)1
● Delaware Tax-Free Oregon Fund
(formerly, First Investors Oregon Tax Exempt Fund)1
● Delaware Tax-Free Pennsylvania Fund
● Delaware Tax-Free USA Fund
● Delaware Tax-Free USA Intermediate Fund
2On May 20, 2020, the Board of Trustees approved the replacement of the Fund’s current sub-advisor with the US Growth Equity team of the Fund’s investment manager, Delaware Management Company. In connection with this determination, the Board approved certain changes to the Fund’s investment strategies. These portfolio management and strategy changes were effective July 31, 2020. The investment strategy changes may result in higher portfolio turnover in the near term, as the new portfolio management team purchases and sells securities to accommodate the investment strategy changes. A higher portfolio turnover is likely to cause the Fund to realize capital gains and incur transaction costs. You should consult your financial advisor about the changes that will result from the investment strategy changes.
3Closed to certain new investors.
4Effective Aug. 20, 2019, the Fund’s name, investment objectives, and portfolio managers changed. The new portfolio managers intend to reposition the Fund’s investment portfolio in accordance with its current investment process. Because everyone’s tax situation is unique, you should consult your tax professional about federal, state, local, or foreign tax consequences before making an investment in the Fund.
5On May 20, 2020, the Board of Trustees unanimously voted and approved a proposal to liquidate and dissolve Delaware Government Cash Management Fund (“Fund”). The liquidation and dissolution are expected to take effect on or about Sept. 25, 2020. The Fund closed to new investors and all sales efforts ceased as of the close of business on Thursday, July 2, 2020. However, the Fund will continue to accept purchases from existing shareholders (including reinvested dividends or capital gains) until close of business Wednesday, Sept. 23, 2020. Until the liquidation, shareholders of the Fund will have the opportunity to exchange their shares for shares of the same class of any other Delaware Funds by Macquarie fund. Any exchange would be made at the current net asset value of the Fund and the selected Delaware Fund. The Fund’s shareholders would not incur front-end or contingent deferred sales charges upon these exchanges as the funds do not typically carry loads or sales charges.
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Caring for your portfolio
Over a lifetime, things change. When they do, it’s important to ensure that your investments stay in tune with your personal situation.
If you decide to make some changes, check out the convenient options provided by Macquarie Investment Management. We try to make it easy for you to avoid some of the sales charges that you might otherwise have to pay when you withdraw and invest your money with another firm.
Most importantly, you may generally exchange all or part of your shares in one Delaware Funds® by Macquarie mutual fund for shares of the same class of another fund without paying a front-end sales charge or a contingent deferred sales charge (CDSC).
Choose the investment method suitable for you
After you’ve evaluated your overall investments, you have choices about how to implement any changes:
1. | Move assets all at once at any time. |
2. | Migrate funds to a different investment slowly through a systematic exchange. You can arrange automatic monthly exchanges of your shares in one Delaware fund for those in another Delaware fund. Systematic exchanges are subject to the same rules as regular exchanges, which are explained in the right column, including a $100 minimum monthly amount per fund. |
3. | Use our automatic investing plan for future investments in different vehicles. To allocate your future investments differently, the Macquarie Investment Management automatic investing plan allows you to make regular monthly or quarterly investments directly from your checking account. |
Important notes about exchanging or redeeming shares
For automated exchanges, a minimum exchange of $100 per fund is required monthly. If the value of your account is $5,000 or more, you can make systematic withdrawals of at least $25 monthly, or $75 quarterly. If the annual amount you withdraw is less than 12% of your account balance at the time the systematic withdrawal plan is established, the CDSC ordinarily applicable to certain fund classes will be waived. More details are available in your prospectus or at delawarefunds.com/literature.
If you exchange shares from Class R shares of any fund, you will pay any applicable sales charge on your new shares.
When exchanging Class C shares of one fund for the same class of shares in other funds, your new shares will be subject to the same CDSC as the shares you originally purchased. The holding period for the CDSC will also remain the same, with the amount of time you held your original shares being credited toward the holding period of your new shares.
You do not pay sales charges on shares that you acquired through the reinvestment of dividends. You may have to pay taxes on your exchange. When you exchange shares, you are purchasing shares in another fund, so you should be sure to get a copy of the fund’s prospectus and read it carefully before buying shares through an exchange.
We may refuse the purchase side of any exchange request if, in the manager’s judgment, the fund would be unable to invest effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected.
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Contact information
Shareholder assistance by phone
800 523-1918, weekdays from 8:30am to
6:00pm Eastern time
For securities dealers and financial
institutions representatives only
800 362-7500
Regular mail
P.O. Box 9876
Providence, RI 02940-8076
Overnight courier service
4400 Computer Drive
Westborough, MA 01581-1722
Macquarie Investment Management ● 2005 Market Street ● Philadelphia, PA 19103-7094
Effective Sept. 1, 2020: 610 Market Street ● Philadelphia, PA 19106-2354
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. Macquarie Investment Management (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, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A.
The Fund is distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than 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 Fund is governed by US laws and regulations.
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Semiannual report
Fixed income mutual funds
Delaware Tax-Exempt Income Fund
(formerly, First Investors Tax Exempt Income Fund)
Delaware Tax-Exempt Opportunities Fund
(formerly, First Investors Tax Exempt Opportunities Fund)
Delaware Tax-Free California II Fund
(formerly, First Investors California Tax Exempt Fund)
Delaware Tax-Free New Jersey Fund
(formerly, First Investors New Jersey Tax Exempt Fund)
Delaware Tax-Free New York II Fund
(formerly, First Investors New York Tax Exempt Fund)
Delaware Tax-Free Oregon Fund
(formerly, First Investors Oregon Tax Exempt Fund)
June 30, 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.
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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-Exempt Income Fund, Delaware Tax-Exempt Opportunities Fund, Delaware Tax-Free California II Fund, Delaware Tax-Free New Jersey Fund, Delaware Tax-Free New York II Fund, and Delaware Tax-Free Oregon Fund at delawarefunds.com/literature.
Manage your account online
● | Check your account balance and transactions |
● | View statements and tax forms |
● | Make purchases and redemptions |
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, Macquarie Capital Investment Management LLC, 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.
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Unless otherwise noted, views expressed herein are current as of June 30, 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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For the six-month period from Jan 1, 2020 to June 30, 2020 (Unaudited)
The investment objective of each Fund is to seek as high a level of current income exempt from federal income tax and from personal income taxes in the respective applicable state, as is consistent with preservation of capital.
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. These 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 Jan. 1, 2020 to June 30, 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 the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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.
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Disclosure of Fund expenses
For the six-month period from Jan 1, 2020 to June 30, 2020 (Unaudited)
Delaware Tax-Exempt Income Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||
Account Value | Account Value | Annualized | Paid During Period | |||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||
Actual Fund return† | ||||||||
Class A | $1,000.00 | $1,012.80 | 0.83% | $4.15 | ||||
Institutional Class | 1,000.00 | 1,013.60 | 0.68% | 3.40 | ||||
Class R6 | 1,000.00 | 1,013.80 | 0.62% | 3.10 | ||||
Hypothetical 5% return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,020.74 | 0.83% | $4.17 | ||||
Institutional Class | 1,000.00 | 1,021.48 | 0.68% | 3.42 | ||||
Class R6 | 1,000.00 | 1,021.78 | 0.62% | 3.12 | ||||
Delaware Tax-Exempt Opportunities Fund Expense analysis of an investment of $1,000
| ||||||||
Beginning | Ending | Expenses | ||||||
Account Value | Account Value | Annualized | Paid During Period | |||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||
Actual Fund return† | ||||||||
Class A | $1,000.00 | $1,009.30 | 0.95% | $4.75 | ||||
Institutional Class | 1,000.00 | 1,010.20 | 0.66% | 3.30 | ||||
Class R6 | 1,000.00 | 1,010.80 | 0.65% | 3.25 | ||||
Hypothetical 5% return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,020.14 | 0.95% | $4.77 | ||||
Institutional Class | 1,000.00 | 1,021.58 | 0.66% | 3.32 | ||||
Class R6 | 1,000.00 | 1,021.63 | 0.65% | 3.27 |
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Delaware Tax-Free California II Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||
Account Value | Account Value | Annualized | Paid During Period | |||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||
Actual Fund return† | ||||||||
Class A | $1,000.00 | $998.80 | 0.92% | $4.57 | ||||
Institutional Class | 1,000.00 | 1,000.10 | 0.64% | 3.18 | ||||
Class R6 | 1,000.00 | 1,000.10 | 0.65% | 3.23 | ||||
Hypothetical 5% return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,020.29 | 0.92% | $4.62 | ||||
Institutional Class | 1,000.00 | 1,021.68 | 0.64% | 3.22 | ||||
Class R6 | 1,000.00 | 1,021.63 | 0.65% | 3.27 | ||||
Delaware Tax-Free New Jersey Fund Expense analysis of an investment of $1,000
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Beginning | Ending | Expenses | ||||||
Account Value | Account Value | Annualized | Paid During Period | |||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||
Actual Fund return† | ||||||||
Class A | $1,000.00 | $1,009.60 | 0.90% | $4.50 | ||||
Institutional Class | 1,000.00 | 1,010.00 | 0.68% | 3.40 | ||||
Class R6 | 1,000.00 | 1,010.00 | 0.66% | 3.30 | ||||
Hypothetical 5% return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,020.39 | 0.90% | $4.52 | ||||
Institutional Class | 1,000.00 | 1,021.48 | 0.68% | 3.42 | ||||
Class R6 | 1,000.00 | 1,021.58 | 0.66% | 3.32 |
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Disclosure of Fund expenses
For the six-month period from Jan 1, 2020 to June 30, 2020 (Unaudited)
Delaware Tax-Free New York II Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||
Account Value | Account Value | Annualized | Paid During Period | |||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||
Actual Fund return† | ||||||||
Class A | $1,000.00 | $1,011.70 | 0.86% | $4.30 | ||||
Institutional Class | 1,000.00 | 1,012.30 | 0.60% | 3.00 | ||||
Class R6 | 1,000.00 | 1,012.90 | 0.62% | 3.10 | ||||
Hypothetical 5% return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,020.59 | 0.86% | $4.32 | ||||
Institutional Class | 1,000.00 | 1,021.88 | 0.60% | 3.02 | ||||
Class R6 | 1,000.00 | 1,021.78 | 0.62% | 3.12 | ||||
Delaware Tax-Free Oregon Fund Expense analysis of an investment of $1,000
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Beginning | Ending | Expenses | ||||||
Account Value | Account Value | Annualized | Paid During Period | |||||
1/1/20 | 6/30/20 | Expense Ratio | 1/1/20 to 6/30/20* | |||||
Actual Fund return† | ||||||||
Class A | $1,000.00 | $1,019.60 | 0.91% | $4.57 | ||||
Institutional Class | 1,000.00 | 1,020.80 | 0.66% | 3.32 | ||||
Class R6 | 1,000.00 | 1,020.70 | 0.67% | 3.37 | ||||
Hypothetical 5% return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,020.34 | 0.91% | $4.57 | ||||
Institutional Class | 1,000.00 | 1,021.58 | 0.66% | 3.32 | ||||
Class R6 | 1,000.00 | 1,021.53 | 0.67% | 3.37 |
*“ | Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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. |
4
Table of Contents
Security type / sector / state / territory allocations
Delaware Tax-Exempt Income Fund | As of June 30, 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* | 99.13 | % | |||
Corporate Revenue Bonds | 7.78 | % | |||
Education Revenue Bonds | 8.35 | % | |||
Electric Revenue Bonds | 4.58 | % | |||
Healthcare Revenue Bonds | 5.80 | % | |||
Lease Revenue Bonds | 3.44 | % | |||
Local General Obligation Bonds | 2.78 | % | |||
Pre-Refunded/Escrowed to Maturity Bonds | 3.59 | % | |||
Special Tax Revenue Bonds | 19.12 | % | |||
State General Obligation Bond | 12.73 | % | |||
Transportation Revenue Bonds | 23.00 | % | |||
Water & Sewer Revenue Bonds | 7.96 | % | |||
Total Value of Securities | 99.13 | % | |||
Receivables and Other Assets Net of Liabilities | 0.87 | % | |||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Tax-Exempt Income Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | ||||
Alaska | 0.27 | % | |||
Arizona | 2.41 | % | |||
California | 9.64 | % | |||
Colorado | 2.04 | % | |||
District of Columbia | 2.58 | % | |||
Florida | 5.67 | % | |||
Georgia | 3.36 | % | |||
Idaho | 0.10 | % | |||
Illinois | 3.36 | % | |||
Louisiana | 1.48 | % | |||
Massachusetts | 3.36 | % | |||
Michigan | 2.58 | % | |||
Missouri | 0.15 | % | |||
New Jersey | 6.50 | % | |||
New York | 29.86 | % | |||
Ohio | 0.17 | % | |||
Oklahoma | 1.16 | % | |||
Oregon | 1.44 | % | |||
Pennsylvania | 6.24 | % | |||
Puerto Rico | 4.34 | % | |||
South Carolina | 1.34 | % |
5
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Exempt Income Fund |
State / territory | Percentage of net assets | ||||
Texas | 3.09 | % | |||
Utah | 3.69 | % | |||
Virginia | 1.33 | % | |||
Washington | 0.35 | % | |||
Wisconsin | 2.62 | % | |||
Total Value of Securities | 99.13 | % |
6
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Exempt Opportunities Fund | As of June 30, 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* | 98.68 | % | |||
Corporate Revenue Bonds | 10.27 | % | |||
Education Revenue Bonds | 8.75 | % | |||
Electric Revenue Bonds | 2.31 | % | |||
Healthcare Revenue Bonds | 9.41 | % | |||
Housing Revenue Bonds | 0.37 | % | |||
Lease Revenue Bonds | 5.47 | % | |||
Local General Obligation Bonds | 4.90 | % | |||
Pre-Refunded Bonds | 4.42 | % | |||
Resource Recovery Revenue Bond | 0.46 | % | |||
Special Tax Revenue Bonds | 16.59 | % | |||
State General Obligation Bonds | 9.30 | % | |||
Transportation Revenue Bonds | 25.32 | % | |||
Water & Sewer Revenue Bonds | 1.11 | % | |||
Total Value of Securities | 98.68 | % | |||
Receivables and Other Assets Net of Liabilities | 1.32 | % | |||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Tax-Exempt Opportunities Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | ||||
Alabama | 0.10 | % | |||
Arizona | 0.29 | % | |||
California | 12.42 | % | |||
Colorado | 3.76 | % | |||
Connecticut | 0.62 | % | |||
District of Columbia | 0.34 | % | |||
Florida | 6.57 | % | |||
Georgia | 2.38 | % | |||
Idaho | 0.06 | % | |||
Illinois | 5.73 | % | |||
Kansas | 0.01 | % | |||
Louisiana | 0.79 | % | |||
Massachusetts | 5.80 | % | |||
Michigan | 4.10 | % | |||
Minnesota | 0.52 | % | |||
Mississippi | 0.33 | % | |||
Missouri | 1.42 | % | |||
New Jersey | 5.24 | % | |||
New York | 17.64 | % |
7
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Exempt Opportunities Fund |
State / territory | Percentage of net assets | ||||
North Carolina | 1.47 | % | |||
Ohio | 0.98 | % | |||
Pennsylvania | 4.96 | % | |||
Puerto Rico | 11.10 | % | |||
Rhode Island | 0.40 | % | |||
South Carolina | 0.25 | % | |||
Tennessee | 1.76 | % | |||
Texas | 4.97 | % | |||
Utah | 1.37 | % | |||
Virginia | 1.79 | % | |||
Washington | 1.31 | % | |||
Wisconsin | 0.20 | % | |||
Total Value of Securities | 98.68 | % |
8
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Free California II Fund | As of June 30, 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* | 98.75 | % | |||
Corporate Revenue Bonds | 5.49 | % | |||
Education Revenue Bonds | 15.18 | % | |||
Electric Revenue Bonds | 4.51 | % | |||
Healthcare Revenue Bonds | 5.13 | % | |||
Housing Revenue Bonds | 2.45 | % | |||
Lease Revenue Bonds | 10.05 | % | |||
Local General Obligation Bonds | 10.00 | % | |||
Pre-Refunded/Escrowed to Maturity Bonds | 10.27 | % | |||
Special Tax Revenue Bonds | 8.98 | % | |||
State General Obligation Bonds | 10.89 | % | |||
Transportation Revenue Bonds | 15.80 | % | |||
Short-Term Investment | 0.27 | % | |||
Total Value of Securities | 99.02 | % | |||
Receivables and Other Assets Net of Liabilities | 0.98 | % | |||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Tax-Free California II 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 | 89.41 | % | |||
Guam | 1.13 | % | |||
Puerto Rico | 7.89 | % | |||
US Virgin Islands | 0.59 | % | |||
Total Value of Securities | 99.02 | % |
9
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Free New Jersey Fund | As of June 30, 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* | 99.40 | % | |||
Corporate Revenue Bonds | 5.49 | % | |||
Education Revenue Bonds | 12.19 | % | |||
Electric Revenue Bonds | 1.02 | % | |||
Healthcare Revenue Bonds | 5.69 | % | |||
Housing Revenue Bonds | 3.15 | % | |||
Lease Revenue Bonds | 12.97 | % | |||
Local General Obligation Bonds | 17.13 | % | |||
Resource Recovery Revenue Bonds | 0.65 | % | |||
Special Tax Revenue Bonds | 24.78 | % | |||
State General Obligation Bonds | 1.88 | % | |||
Transportation Revenue Bonds | 14.45 | % | |||
Total Value of Securities | 99.40 | % | |||
Receivables and Other Assets Net of Liabilities | 0.60 | % | |||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Tax-Free New Jersey 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 | 1.18 | % | |||
New Jersey | 81.28 | % | |||
New York | 1.63 | % | |||
Pennsylvania | 6.69 | % | |||
Puerto Rico | 8.08 | % | |||
US Virgin Islands | 0.54 | % | |||
Total Value of Securities | 99.40 | % |
10
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Free New York II Fund | As of June 30, 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* | 98.86 | % | |||
Corporate Revenue Bonds | 2.76 | % | |||
Education Revenue Bonds | 25.71 | % | |||
Electric Revenue Bonds | 7.10 | % | |||
Healthcare Revenue Bond | 2.06 | % | |||
Housing Revenue Bond | 1.47 | % | |||
Lease Revenue Bonds | 7.89 | % | |||
Local General Obligation Bonds | 5.10 | % | |||
Pre-Refunded/Escrowed to Maturity Bonds | 4.33 | % | |||
Special Tax Revenue Bonds | 22.72 | % | |||
State General Obligation Bonds | 1.80 | % | |||
Transportation Revenue Bonds | 12.01 | % | |||
Water & Sewer Revenue Bonds | 5.91 | % | |||
Total Value of Securities | 98.86 | % | |||
Receivables and Other Assets Net of Liabilities | 1.14 | % | |||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Tax-Free New York II 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 | 1.19 | % | |||
New York | 88.23 | % | |||
Puerto Rico | 9.21 | % | |||
US Virgin Islands | 0.23 | % | |||
Total Value of Securities | 98.86 | % |
11
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Free Oregon Fund | As of June 30, 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* | 101.73 | % | |||
Corporate Revenue Bond | 0.47 | % | |||
Education Revenue Bonds | 6.35 | % | |||
Electric Revenue Bonds | 0.98 | % | |||
Healthcare Revenue Bonds | 13.34 | % | |||
Housing Revenue Bonds | 3.92 | % | |||
Local General Obligation Bonds | 30.48 | % | |||
Pre-Refunded Bonds | 14.93 | % | |||
Special Tax Revenue Bonds | 10.46 | % | |||
State General Obligation Bonds | 6.12 | % | |||
Transportation Revenue Bonds | 8.03 | % | |||
Water & Sewer Revenue Bonds | 6.65 | % | |||
Short-Term Investment | 0.79 | % | |||
Total Value of Securities | 102.52 | % | |||
Liabilities Net of Receivables and Other Assets | (2.52 | %) | |||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Tax-Free Oregon 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 | 0.94 | % | |||
Oregon | 93.50 | % | |||
Puerto Rico | 7.57 | % | |||
US Virgin Islands | 0.51 | % | |||
Total Value of Securities | 102.52 | % |
12
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Income Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 99.13% | ||||||||
| ||||||||
Corporate Revenue Bonds – 7.78% | ||||||||
Allegheny County, Pennsylvania Industrial Development Authority Revenue | 2,650,000 | $ | 2,332,159 | |||||
California Pollution Control Financing Authority Revenue | 875,000 | 470,313 | ||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | 5,955,000 | 1,245,250 | ||||||
Inland Empire Tobacco Securitization, California | 74,090,000 | 2,737,625 | ||||||
Jefferson County, Texas Industrial Development | 875,000 | 803,906 | ||||||
Michigan Tobacco Settlement Financing Authority Revenue Asset-Backed | 875,000 | 875,166 | ||||||
Monroe County, Michigan Economic Development | 4,500,000 | 5,119,695 | ||||||
New Jersey Tobacco Settlement Financing Corporation | 3,500,000 | 3,844,855 | ||||||
New York Liberty Development | ||||||||
(Bank of America Tower At One Bryant Park Project) 2.625% 9/15/69 | 1,435,000 | 1,426,003 | ||||||
2.80% 9/15/69 | 5,220,000 | 5,123,221 | ||||||
Northern Tobacco Securitization, Alaska | 1,400,000 | 1,400,280 | ||||||
Salt Verde, Arizona Financial Corporation Senior Gas Revenue | 1,000,000 | 1,327,850 | ||||||
South Carolina Jobs - Economic Development Authority Educational Facilities Revenue | ||||||||
(Jasper Pellets, LLC Project) 144A 7.00% 11/1/38 (AMT)# | 875,000 | 815,238 | ||||||
(South Carolina SAVES Green Community Program - AAC East LLC Project) Series A 144A 7.00% 5/1/39 (AMT)# | 900,000 | 791,901 |
13
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Corporate Revenue Bonds (continued) | ||||||||
St. James Parish, Louisiana | ||||||||
(NuStar Logistics, LP Project) 144A 6.10% 6/1/38 # | 385,000 | $ | 449,588 | |||||
Series A 144A 6.35% 10/1/40 # | 1,545,000 | 1,814,772 | ||||||
Series B 144A 6.10% 12/1/40 # | 380,000 | 443,749 | ||||||
Tobacco Securitization Authority of Southern California | ||||||||
(Capital Appreciation-2nd Subordinate Lien) Series C 0.558% 6/1/46 ^ | 9,040,000 | 1,604,419 | ||||||
(Capital Appreciation-3rd Subordinate Lien) Series D 0.307% 6/1/46 ^ | 1,490,000 | 236,746 | ||||||
Virginia Tobacco Settlement Financing Corporation | ||||||||
(Capital Appreciation Asset-Backed) Series C 1.971% 6/1/47 ^ | 23,380,000 | 4,312,909 | ||||||
(Capital Appreciation) Series B 5.20% 6/1/46 | 1,250,000 | 1,258,925 | ||||||
Series D 2.601% 6/1/47 ^ | 6,955,000 | 1,214,621 | ||||||
|
| |||||||
39,649,191 | ||||||||
|
| |||||||
Education Revenue Bonds – 8.35% | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Empower College Prep Project) 144A 6.00% 7/1/49 # | 875,000 | 911,391 | ||||||
(Odyssey Preparatory Academy Project) Series A 144A 5.50% 7/1/52 # | 875,000 | 936,075 | ||||||
Build NYC Resource, New York | 500,000 | 517,305 | ||||||
California Educational Facilities Authority Revenue | 1,000,000 | 1,669,450 | ||||||
California Municipal Finance Authority Revenue | 700,000 | 719,859 | ||||||
California School Finance Authority | 355,000 | 369,999 | ||||||
Capital Trust Agency, Florida Revenue | 2,000,000 | 1,952,520 | ||||||
Dauphin County, Pennsylvania General Authority Revenue | 875,000 | 826,236 | ||||||
District of Columbia Revenue | ||||||||
(KIPP DC Issue) 4.00% 7/1/39 | 1,275,000 | 1,349,269 | ||||||
4.00% 7/1/44 | 740,000 | 773,922 |
14
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
Fulton County, Georgia Development Authority | 3,100,000 | $ | 3,815,201 | |||||
Maricopa County, Arizona Industrial Development Authority Revenue | ||||||||
(Arizona Autism Charter Schools Project) Series A 144A 5.00% 7/1/50 # | 175,000 | 179,203 | ||||||
Series A 144A 5.00% 7/1/54 # | 240,000 | 244,704 | ||||||
Massachusetts Development Finance Agency | 5,000,000 | 7,765,900 | ||||||
Massachusetts Educational Financing Authority | 495,000 | 495,525 | ||||||
Massachusetts School Building Authority | 2,500,000 | 2,953,000 | ||||||
New York State Dormitory Authority Revenue | 10,000,000 | 12,014,400 | ||||||
Newark, Texas Higher Education Finance | 875,000 | 846,930 | ||||||
Oregon State Facilities Authority Revenue | ||||||||
(Metro East Web Academy Project) Series A 144A 5.00% 6/15/39 # | 500,000 | 502,135 | ||||||
Series A 144A 5.00% 6/15/49 # | 500,000 | 490,980 | ||||||
Phoenix, Arizona Industrial Development Authority | 250,000 | 263,187 | ||||||
Pima County, Arizona Industrial Development Authority Education Revenue | 655,000 | 647,337 | ||||||
State Public School Building Authority Revenue, Pennsylvania | ||||||||
(Community College of Allegheny County Project) 5.00% 3/1/27 BAM | 240,000 | 296,626 | ||||||
5.00% 3/1/28 BAM | 250,000 | 315,355 | ||||||
5.00% 3/1/29 BAM | 265,000 | 340,048 | ||||||
Utah State Charter School Finance Authority Revenue | 675,000 | 692,510 | ||||||
Yonkers, New York Economic Development Corporation Education Revenue | ||||||||
(Lamartine/Warburton LLC - Charter School of Educational Excellence Project) Series A 4.00% 10/15/29 | 230,000 | 232,183 | ||||||
Series A 5.00% 10/15/39 | 420,000 | 438,035 | ||||||
|
| |||||||
42,559,285 | ||||||||
|
|
15
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Electric Revenue Bonds – 4.58% | ||||||||
Piedmont Municipal Power Agency, South Carolina | 5,000,000 | $ | 5,205,250 | |||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue | 5,000,000 | 6,120,450 | ||||||
Utility Debt Securitization Authority, New York | 10,000,000 | 11,993,700 | ||||||
|
| |||||||
23,319,400 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 5.80% | ||||||||
California Health Facilities Financing Authority Revenue | 1,600,000 | 2,553,984 | ||||||
Capital Trust Agency, Florida | ||||||||
(Sarasota-Manatee Jewish Housing Council, Inc. Project) 144A 5.00% 7/1/46 # | 875,000 | 814,861 | ||||||
(Tuscan Gardens Palm Coast Project) Series A 144A 7.00% 10/1/49 # | 350,000 | 253,221 | ||||||
Collier County, Florida Industrial Development Authority Revenue | 775,000 | 581,250 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(CommonSpirit Health) Series A-1 4.00% 8/1/38 | 1,000,000 | 1,096,890 | ||||||
Series A-2 5.00% 8/1/37 | 1,105,000 | 1,321,668 | ||||||
(Ralston Creek at Arvada Project) Series A 5.25% 11/1/32 | 875,000 | 756,324 | ||||||
Escambia County, Florida Health Facilities Authority Revenue | 2,500,000 | 2,679,300 | ||||||
Glendale, Arizona Industrial Development Authority Revenue | ||||||||
(Glencroft Retirement Community Project) 5.25% 11/15/46 | 875,000 | 808,115 | ||||||
(The Terraces of Phoenix Project) 5.00% 7/1/48 | 875,000 | 841,855 | ||||||
Idaho Health Facilities Authority Revenue | 775,000 | 517,142 | ||||||
Illinois Finance Authority Revenue | 875,000 | 788,629 | ||||||
King County, Washington Public Hospital District No.4 | 875,000 | 950,241 |
16
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Lake County Port & Economic Development Authority, Ohio | 805,000 | $ | 590,467 | |||||
Lancaster County, Philadelphia, Pennsylvania Hospital Authority Revenue | 1,425,000 | 1,450,180 | ||||||
Lee County, Florida Industrial Development Authority | 850,000 | 751,765 | ||||||
Montgomery County, Ohio | 445,000 | 255,777 | ||||||
Nassau County, New York Industrial Development Agency | 875,000 | 692,510 | ||||||
Northampton County, Philadelphia, Pennsylvania Industrial Development Authority | 1,275,000 | 1,287,775 | ||||||
Pennsylvania Economic Development Financing Authority First Mortgage Revenue | ||||||||
(Tapestry Moon Senior Housing Project) Series A 144A 6.50% 12/1/38 # | 1,000,000 | 954,570 | ||||||
Series A 144A 6.75% 12/1/53 # | 875,000 | 818,099 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | 825,000 | 508,052 | ||||||
Seminole County, Florida Industrial Development Authority | ||||||||
(Legacy Pointe at UCF Project) Series A 5.25% 11/15/39 | 2,710,000 | 2,427,428 | ||||||
Series B 4.25% 11/15/26 | 2,940,000 | 2,723,675 | ||||||
Tarrant County, Texas Cultural Education Facilities Finance Corporation Retirement Facility Revenue | ||||||||
(C.C. Young Memorial Home Project) Series A 6.375% 2/15/48 | 825,000 | 673,233 | ||||||
(MRC Stevenson Oaks Project) Series A 144A 10.00% 3/15/23 # | 875,000 | 1,042,834 | ||||||
Washington State Housing Finance Commission | 800,000 | 841,136 | ||||||
Woodloch Health Facilities Development, Missouri | 800,000 | 565,456 | ||||||
|
| |||||||
29,546,437 | ||||||||
|
|
17
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Lease Revenue Bonds – 3.44% | ||||||||
California Statewide Communities Development Authority Revenue | 1,000,000 | $ | 1,048,230 | |||||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue | 875,000 | 897,706 | ||||||
New Jersey State Transportation Trust Fund Authority | 5,000,000 | 5,618,000 | ||||||
New York City, New York Transitional Finance Authority Building Aid Revenue | 5,000,000 | 5,810,200 | ||||||
New York Liberty Development Revenue | 4,000,000 | 4,166,280 | ||||||
|
| |||||||
17,540,416 | ||||||||
|
| |||||||
Local General Obligation Bonds – 2.78% | ||||||||
Blue Lake Metropolitan District No.3, Colorado | 525,000 | 433,393 | ||||||
Chicago, Illinois Board of Education | 1,225,000 | 1,235,743 | ||||||
Crowfoot Valley Ranch Metropolitan District No.2, Colorado | 1,000,000 | 1,022,510 | ||||||
Denton Independent School District, Texas (School Building) | 4,000,000 | 4,728,800 | ||||||
New York City, New York | 5,000,000 | 5,850,500 | ||||||
South Maryland Creek Ranch Metropolitan District, Colorado | 875,000 | 888,825 | ||||||
|
| |||||||
14,159,771 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 3.59% | ||||||||
Georgia State Environmental Loan Acquisition | 2,205,000 | 2,280,477 | ||||||
Manatee County, Florida School District | 5,000,000 | 5,265,450 | ||||||
New Jersey State Turnpike Authority Turnpike Revenue | 5,000,000 | 5,470,750 | ||||||
Pennsylvania Turnpike Commission Revenue | 4,555,000 | 5,281,568 | ||||||
|
| |||||||
18,298,245 | ||||||||
|
|
18
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds – 19.12% | ||||||||
Camden County, New Jersey Improvement Authority Revenue | 5,000,000 | $ | 5,846,250 | |||||
Dallas, Texas Area Rapid Transit | 5,000,000 | 5,789,350 | ||||||
Denver Convention Center Hotel Authority, Colorado | ||||||||
Series REF 5.00% 12/1/26 | 1,230,000 | 1,318,142 | ||||||
Series REF 5.00% 12/1/29 | 295,000 | 314,677 | ||||||
Series REF 5.00% 12/1/31 | 440,000 | 467,799 | ||||||
Series REF 5.00% 12/1/32 | 880,000 | 934,498 | ||||||
Series REF 5.00% 12/1/34 | 735,000 | 778,409 | ||||||
Series REF 5.00% 12/1/35 | 590,000 | 623,553 | ||||||
Series REF 5.00% 12/1/36 | 440,000 | 463,976 | ||||||
Juban Crossing Economic Development District, Louisiana | 875,000 | 753,865 | ||||||
Kansas City, Missouri Land Clearance Redevelopment Authority Revenue | 725,000 | 743,357 | ||||||
Louisiana Regional Transit Authority | 3,305,000 | 3,164,769 | ||||||
Metropolitan Transportation Authority Revenue, New York | 5,000,000 | 5,817,300 | ||||||
New York City, New York Transitional Finance Authority Future Tax Secured | ||||||||
Series B-1 5.00% 8/1/42 | 5,000,000 | 5,710,300 | ||||||
Series D-1 5.00% 11/1/38 | 7,500,000 | 7,867,350 | ||||||
Series E-1 5.00% 2/1/35 | 5,000,000 | 6,089,900 | ||||||
New York State Dormitory Authority Revenue | ||||||||
Series A 5.00% 3/15/31 | 2,500,000 | 2,947,525 | ||||||
Series B 5.00% 3/15/35 | 5,000,000 | 5,313,150 | ||||||
(General Purpose) Series D 5.00% 2/15/37 | 5,000,000 | 5,293,100 | ||||||
New York State Urban Development Revenue | 5,000,000 | 5,886,500 | ||||||
Orange County, California Local Transportation Authority | 5,000,000 | 6,306,400 | ||||||
Port Authority of Allegheny County, Pennsylvania | 5,000,000 | 5,148,250 | ||||||
Puerto Rico Sales Tax Financing Revenue | 11,224,000 | 3,179,759 |
19
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) Series A-1 4.75% 7/1/53 | 5,015,000 | $ | 5,166,252 | |||||
Series A-1 5.00% 7/1/58 | 1,330,000 | 1,393,907 | ||||||
Series A-2 4.329% 7/1/40 | 10,001,000 | 10,072,307 | ||||||
|
| |||||||
97,390,645 | ||||||||
|
| |||||||
State General Obligation Bond – 12.73% | ||||||||
California State | ||||||||
5.00% 8/1/33 | 5,000,000 | 5,858,150 | ||||||
5.00% 9/1/35 | 8,000,000 | 9,762,720 | ||||||
(School Facilities) 5.00% 11/1/30 | 5,000,000 | 5,667,300 | ||||||
(Various Purposes) 5.00% 10/1/26 | 2,500,000 | 3,164,850 | ||||||
5.25% 9/1/30 | 5,000,000 | 5,684,000 | ||||||
Commonwealth of Massachusetts | 5,000,000 | 5,913,000 | ||||||
Commonwealth of Puerto Rico | ||||||||
(General Obligation) Series A 8.00% 7/1/35 ‡ | 685,000 | 412,713 | ||||||
(Public Improvement) Series A 5.00% 7/1/24 ‡ | 1,070,000 | 753,013 | ||||||
Series A 5.25% 7/1/34 ‡ | 875,000 | 616,875 | ||||||
(Unrefunded Balance - Public Improvement) Series B 5.00% 7/1/35 ‡ | 730,000 | 512,825 | ||||||
District of Columbia Revenue | ||||||||
Series B 6.00% 6/1/21 (NATL) | 5,000,000 | 5,264,650 | ||||||
Series C 5.00% 6/1/34 | 5,000,000 | 5,765,700 | ||||||
Illinois State | ||||||||
5.00% 1/1/28 | 915,000 | 979,617 | ||||||
5.25% 2/1/30 | 1,115,000 | 1,168,252 | ||||||
5.25% 2/1/32 | 580,000 | 606,036 | ||||||
5.25% 2/1/33 | 210,000 | 219,026 | ||||||
Series A 5.125% 12/1/29 | 1,490,000 | 1,622,819 | ||||||
(Rebuild Illinois Program) Series B 4.00% 11/1/34 | 4,545,000 | 4,486,824 | ||||||
Oregon State | 5,000,000 | 6,371,850 | ||||||
|
| |||||||
64,830,220 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 23.00% | ||||||||
Atlanta, Georgia Department of Aviation | 5,000,000 | 5,106,900 | ||||||
Chicago, Illinois O’Hare International Airport Revenue | 5,000,000 | 6,027,850 |
20
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Lee County, Florida Airport Revenue | 4,305,000 | $ | 5,075,681 | |||||
Miami-Dade County, Florida Aviation Revenue | 5,700,000 | 6,365,361 | ||||||
New Jersey State Turnpike Authority Turnpike Revenue | ||||||||
Series A 5.00% 1/1/43 | 1,860,000 | 1,978,408 | ||||||
Series E 5.00% 1/1/32 | 5,050,000 | 6,208,268 | ||||||
New York State Thruway Authority | ||||||||
Series J 5.00% 1/1/32 | 5,000,000 | 5,642,300 | ||||||
Series K 5.00% 1/1/31 | 5,000,000 | 5,792,500 | ||||||
New York Transportation Development Special Facilities Revenue | ||||||||
(Delta Airlines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) 5.00% 1/1/33 (AMT) | 790,000 | 847,204 | ||||||
5.00% 1/1/34 (AMT) | 4,210,000 | 4,514,846 | ||||||
Oklahoma State Turnpike Authority Revenue | 5,000,000 | 5,892,050 | ||||||
Pennsylvania Turnpike Commission Revenue | ||||||||
Series B 5.00% 12/1/45 | 5,000,000 | 5,687,650 | ||||||
Series C 5.00% 12/1/43 | 1,445,000 | 1,575,180 | ||||||
Port Authority of New York & New Jersey | ||||||||
5.00% 9/15/25 (AMT) | 7,000,000 | 8,369,130 | ||||||
5.00% 10/15/29 (AMT) | 3,105,000 | 3,643,221 | ||||||
Port Beaumont Navigation District, Texas | 1,250,000 | 1,295,287 | ||||||
Salt Lake City, Utah Airport Revenue | ||||||||
(Senior Lien) Series A 5.00% 7/1/36 (AMT) | 10,000,000 | 12,092,900 | ||||||
Series A 5.00% 7/1/38 (AMT) | 5,000,000 | 6,012,700 | ||||||
South Jersey Port, New Jersey | ||||||||
(Subordinated Marine Terminal) Series B 5.00% 1/1/24 (AMT) | 180,000 | 192,715 | ||||||
Series B 5.00% 1/1/25 (AMT) | 390,000 | 423,513 | ||||||
Series B 5.00% 1/1/30 (AMT) | 230,000 | 254,766 | ||||||
Series B 5.00% 1/1/33 (AMT) | 390,000 | 424,928 | ||||||
Series B 5.00% 1/1/34 (AMT) | 450,000 | 488,493 | ||||||
Series B 5.00% 1/1/35 (AMT) | 245,000 | 265,156 | ||||||
Series B 5.00% 1/1/36 (AMT) | 230,000 | 248,027 | ||||||
South Jersey Transportation Authority, New Jersey | 1,500,000 | 1,831,005 |
21
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Income Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Superior City, Wisconsin | 12,000,000 | $ | 12,818,400 | |||||
Wayne County, Michigan Airport Authority | 6,300,000 | 7,145,460 | ||||||
Westchester County, New York Industrial Development Agency | 875,000 | 951,694 | ||||||
|
| |||||||
117,171,593 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 7.96% | ||||||||
Atlanta, Georgia Water & Wastewater Revenue | 5,000,000 | 5,893,900 | ||||||
New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue | ||||||||
Series A 6.00% 6/15/21 (AGM) | 22,000,000 | 23,189,980 | ||||||
Series EE 5.00% 6/15/39 | 5,000,000 | 5,970,600 | ||||||
Philadelphia, Pennsylvania Water & Wastewater Revenue | 5,000,000 | 5,502,650 | ||||||
|
| |||||||
40,557,130 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $475,766,957) | 505,022,333 | |||||||
|
| |||||||
Total Value of Securities – 99.13% | $ | 505,022,333 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $33,996,211, which represents 6.67% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
§ | 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 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
22
Table of Contents
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
NATL – Insured by National Public Finance Guarantee Corporation
PSF – Guaranteed by Permanent School Fund
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
23
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Opportunities Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 98.68% | ||||||||
| ||||||||
Corporate Revenue Bonds – 10.27% | ||||||||
California Pollution Control Financing Authority Revenue | 375,000 | $ | 201,563 | |||||
Erie County, New York Tobacco Asset Securitization Revenue | 25,000,000 | 1,027,000 | ||||||
Golden State Tobacco Securitization Settlement Revenue, California | ||||||||
(Asset-Backed) Series A-2 5.00% 6/1/47 | 500,000 | 506,265 | ||||||
(Capital Appreciation Asset-Backed) Series B 0.583% 6/1/47 ^ | 6,425,000 | 1,343,532 | ||||||
Inland Empire Tobacco Securitization, California | ||||||||
Series E 144A 0.967% 6/1/57 #^ | 45,705,000 | 2,279,308 | ||||||
Series F 144A 1.459% 6/1/57 #^ | 190,445,000 | 7,036,943 | ||||||
Jefferson County, Texas Industrial Development Revenue | 500,000 | 459,375 | ||||||
Lower Alabama Gas District | 250,000 | 344,457 | ||||||
Michigan Tobacco Settlement Finance Authority Revenue | 525,000 | 525,100 | ||||||
Minneapolis, Minnesota Community Planning & Economic Development Department | 300,000 | 307,185 | ||||||
Monroe County, Michigan Economic Development Revenue | 500,000 | 568,855 | ||||||
M-S-R Energy Authority, California Gas Revenue | 1,000,000 | 1,571,470 | ||||||
New Jersey Tobacco Settlement Financing Corporation | 2,510,000 | 2,757,310 | ||||||
New York Liberty Development Revenue | ||||||||
2.625% 9/15/69 | 1,080,000 | 1,073,228 | ||||||
2.80% 9/15/69 | 8,150,000 | 7,998,899 | ||||||
Public Authority for Colorado Energy Natural Gas Revenue | 1,000,000 | 1,505,150 |
24
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Corporate Revenue Bonds (continued) | ||||||||
South Carolina Jobs - Economic Development Authority Educational Facilities Revenue | ||||||||
(Jasper Pellets, LLC Project) Series A 144A 7.00% 11/1/38 (AMT) # | 375,000 | $ | 349,388 | |||||
(South Carolina SAVES Green Community Program - AAC East LLC Project) Series A 144A 7.00% 5/1/39 (AMT) # | 600,000 | 527,934 | ||||||
Tobacco Securitization Authority of Southern California | ||||||||
(Capital Appreciation-2nd Subordinate Lien) Series C 0.558% 6/1/46 ^ | 6,400,000 | 1,135,872 | ||||||
(Capital Appreciation-3rd Subordinate Lien) Series D 0.307% 6/1/46 ^ | 1,055,000 | 167,629 | ||||||
Virginia Tobacco Settlement Financing | ||||||||
Series C 1.966% 6/1/47 ^ | 19,135,000 | 3,529,833 | ||||||
Series D 2.521% 6/1/47 ^ | 6,760,000 | 1,180,566 | ||||||
|
| |||||||
36,396,862 | ||||||||
|
| |||||||
Education Revenue Bonds – 8.75% | ||||||||
BIBB County, Georgia Development Authority Revenue | 2,500,000 | 2,592,075 | ||||||
Build NYC Resource, New York | 400,000 | 413,844 | ||||||
California Educational Facilities Authority Revenue | ||||||||
Series T-1 5.00% 3/15/39 | 8,000,000 | 12,318,400 | ||||||
Series V-1 5.00% 5/1/49 | 1,950,000 | 3,255,427 | ||||||
California Municipal Finance Authority Revenue | 300,000 | 308,511 | ||||||
Capital Trust Agency, Florida | 1,750,000 | 1,651,020 | ||||||
Columbia Heights, Minnesota Charter School Lease Revenue | 1,000,000 | 965,860 | ||||||
Dauphin County, Pennsylvania General Authority Revenue | ||||||||
144A 5.00% 10/15/34 # | 375,000 | 354,101 | ||||||
144A 5.125% 10/15/41 # | 150,000 | 136,505 |
25
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Opportunities Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
Maricopa County, Arizona Industrial Development Authority Revenue | 500,000 | $ | 512,010 | |||||
Massachusetts Development Finance Agency Revenue | 500,000 | 567,345 | ||||||
Massachusetts Educational Financing Authority Revenue | 95,000 | 95,103 | ||||||
Newark Higher Education Finance Revenue, Texas | 375,000 | 362,970 | ||||||
Ohio Higher Educational Facility Revenue | 500,000 | 506,640 | ||||||
Pennsylvania State Public School Building Authority | 500,000 | 514,370 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | 500,000 | 502,990 | ||||||
Rhode Island Health and Educational Building Revenue | 1,415,000 | 1,420,278 | ||||||
Summit County, Ohio Development Finance Authority Revenue | 1,000,000 | 1,020,720 | ||||||
Town of Davie, Florida | 3,000,000 | 3,510,900 | ||||||
|
| |||||||
31,009,069 | ||||||||
|
| |||||||
Electric Revenue Bonds – 2.31% | ||||||||
Long Island, New York Power Authority | 3,000,000 | 3,503,790 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.00% 7/1/42 ‡ | 3,135,000 | 2,186,663 | ||||||
Series A 6.75% 7/1/36 ‡ | 1,770,000 | 1,261,125 | ||||||
Series WW 5.25% 7/1/33 ‡ | 1,750,000 | 1,225,000 | ||||||
|
| |||||||
8,176,578 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 9.41% | ||||||||
Berks County, Pennsylvania Industrial Development Authority Revenue | 3,000,000 | 3,340,740 |
26
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
California Health Facilities Financing Authority Revenue | 750,000 | $ | 1,197,180 | |||||
Capital Trust Agency, Florida | ||||||||
(Sarasota-Manatee Jewish Housing Council, Inc. Project) Series A 144A | 500,000 | 465,635 | ||||||
(Tuscan Gardens Palm Coast Project) | ||||||||
Series A 144A 6.75% 10/1/37 # | 150,000 | 112,251 | ||||||
Series A 144A 7.00% 10/1/49 # | 320,000 | 231,517 | ||||||
Collier County, Florida Industrial Development Authority Revenue | 335,000 | 251,250 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(Cappella of Grand Junction Project) 144A 5.00% 12/1/54 # | 1,635,000 | 1,523,526 | ||||||
(CommonSpirit Health) Series A-2 4.00% 8/1/49 | 1,500,000 | 1,610,190 | ||||||
(Ralston Creek at Arvada Project) Series A 5.25% 11/1/32 | 375,000 | 324,139 | ||||||
Hospitals & Higher Education Facilities Authority of Philadelphia, Pennsylvania | 500,000 | 519,060 | ||||||
Idaho Health Facilities Authority Revenue | 330,000 | 220,202 | ||||||
Illinois Finance Authority Revenue | 375,000 | 337,984 | ||||||
King County, Washington Public Hospital District No. 4 | 375,000 | 407,246 | ||||||
Lake County Port & Economic Development Authority Revenue, Ohio | 495,000 | 363,083 | ||||||
Lee County Industrial Development Authority, Florida | 475,000 | 420,104 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue | 2,500,000 | 2,075,050 | ||||||
Miami-Dade County, Florida Health Facilities Authority Revenue | 1,500,000 | 1,732,080 |
27
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Opportunities Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Montgomery, Ohio | 250,000 | $ | 143,695 | |||||
Nash Health Care Systems Revenue, North Carolina | 1,000,000 | 1,004,070 | ||||||
Nassau County, New York Industrial Development Agency Revenue | 375,000 | 296,790 | ||||||
New Hope, Texas Cultural Education Facilities Finance | ||||||||
(Legacy Midtown Park Project) Series A 5.50% 7/1/54 | 2,250,000 | 2,054,385 | ||||||
(Presbyterian Village North Project) Series A1 5.25% 10/1/49 | 500,000 | 435,580 | ||||||
New York State Dormitory Authority Revenue | 50,000 | 55,745 | ||||||
Norfolk, Virginia Economic Development Authority Revenue | 1,000,000 | 1,066,530 | ||||||
Pennsylvania Economic Development Financing Authority First Mortgage Revenue | ||||||||
(Tapestry Moon Senior Housing Project) | ||||||||
Series A 144A 6.50% 12/1/38 # | 1,500,000 | 1,431,855 | ||||||
Series A 144A 6.75% 12/1/53 # | 500,000 | 467,485 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | 350,000 | 215,537 | ||||||
Seminole County Industrial Development Authority, Florida (Legacy Pointe at UCF Project) | ||||||||
4.25% 11/15/26 | 2,060,000 | 1,908,425 | ||||||
5.50% 11/15/49 | 2,000,000 | 1,750,920 | ||||||
Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue | 630,000 | 547,325 | ||||||
Tarrant County, Texas Cultural Education Facilities Finance | ||||||||
(Buckner Senior Living - Ventana Project) 6.75% 11/15/47 | 500,000 | 523,385 | ||||||
(C.C. Young Memorial Home Project) 6.375% 2/15/48 | 350,000 | 285,614 | ||||||
(MRC Stevenson Oaks Project) 144A 10.00% 3/15/23 # | 375,000 | 446,929 | ||||||
Tempe, Arizona Industrial Development Authority Revenue | 500,000 | 502,990 |
28
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
University of North Carolina Board of Governors | 500,000 | $ | 578,750 | |||||
Washington Health Care Facilities Authority Revenue | 50,000 | 53,963 | ||||||
Washington State Housing Finance Commission | 3,970,000 | 4,174,137 | ||||||
Woodloch Health Facilities Development, Texas | 345,000 | 243,853 | ||||||
|
| |||||||
33,319,200 | ||||||||
|
| |||||||
Housing Revenue Bonds – 0.37% | ||||||||
Massachusetts Housing Finance Agency | 1,000,000 | 1,002,640 | ||||||
Minnesota Housing Finance Agency | 300,000 | 310,728 | ||||||
|
| |||||||
1,313,368 | ||||||||
|
| |||||||
Lease Revenue Bonds – 5.47% | ||||||||
California Pollution Control Financing Authority Revenue | 1,000,000 | 1,139,380 | ||||||
Connecticut State Health & Educational Facilities Authority | 1,000,000 | 1,042,140 | ||||||
Kansas City, Missouri | ||||||||
(Downtown Streetcar Project) | ||||||||
Series A 5.00% 9/1/34 | 4,000,000 | 4,013,520 | ||||||
Series A 5.00% 9/1/37 | 1,000,000 | 1,003,280 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue | 375,000 | 384,731 | ||||||
Metropolitan Pier & Exposition Authority, Illinois | ||||||||
(McCormick Place Expansion Project) | ||||||||
Series A 4.00% 6/15/50 | 1,000,000 | 954,630 | ||||||
Series A 5.00% 6/15/50 | 1,850,000 | 1,976,355 | ||||||
Michigan State Building Authority | 1,000,000 | 1,055,700 | ||||||
Minnesota Housing Finance Agency | 250,000 | 261,630 | ||||||
New Jersey State Transportation Trust Fund Authority | 1,000,000 | 1,162,280 |
29
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Opportunities Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Lease Revenue Bonds (continued) | ||||||||
New York City, New York Transitional Finance Authority Building Aid Revenue | 5,000,000 | $ | 5,353,300 | |||||
New York Liberty Development Revenue | 1,000,000 | 1,041,570 | ||||||
|
| |||||||
19,388,516 | ||||||||
|
| |||||||
Local General Obligation Bonds – 4.90% | ||||||||
Blue Lake Metropolitan District No. 3, Colorado | 225,000 | 185,740 | ||||||
Crowfoot Valley Ranch Metropolitan District No. 2, Colorado | 500,000 | 511,255 | ||||||
Goodrich Area School District, Michigan | 1,000,000 | 1,041,980 | ||||||
New York City, New York | ||||||||
Subseries B-1 5.00% 12/1/37 | 4,500,000 | 5,388,795 | ||||||
Subseries B-1 5.00% 12/1/41 | 5,000,000 | 5,950,800 | ||||||
Quincy, Massachusetts | 500,000 | 509,350 | ||||||
Rockwall Independent School District, Texas | 2,000,000 | 2,341,740 | ||||||
South Maryland Creek Ranch Metropolitan District, Colorado | 500,000 | 507,900 | ||||||
Wayne, Michigan | 935,000 | 938,235 | ||||||
|
| |||||||
17,375,795 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 4.42% | ||||||||
Broward, Florida Airport System Revenue | 5,000,000 | 5,790,350 | ||||||
Georgia State Environmental Loan Acquisition | 695,000 | 718,790 | ||||||
Kent Hospital Finance Authority, Michigan | 1,000,000 | 1,064,320 | ||||||
Lansing, Michigan Board of Water & Light | 5,000,000 | 5,261,800 | ||||||
Richmond, Virginia Public Utility Revenue | 500,000 | 559,465 | ||||||
University of Massachusetts Building Authority Revenue | 1,000,000 | 1,107,090 |
30
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded Bonds (continued) | ||||||||
Waterbury, Connecticut 5.00% 12/1/32-23 § | 1,000,000 | $ | 1,153,970 | |||||
|
| |||||||
15,655,785 | ||||||||
|
| |||||||
Resource Recovery Revenue Bond – 0.46% | ||||||||
Union County, New Jersey Improvement Authority | 1,750,000 | 1,619,748 | ||||||
|
| |||||||
1,619,748 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 16.59% | ||||||||
Illinois State | 1,000,000 | 1,172,720 | ||||||
Juban Crossing Economic Development District, Louisiana | 375,000 | 323,085 | ||||||
Metropolitan Transportation Authority Revenue, New York | 2,000,000 | 2,326,920 | ||||||
New York City, New York Transitional Finance Authority Building Aid Revenue Subordinate | 2,500,000 | 3,095,275 | ||||||
New York State Dormitory Authority Revenue | ||||||||
Series A 5.00% 3/15/39 | 4,000,000 | 4,830,680 | ||||||
Series A 5.00% 3/15/42 | 4,000,000 | 4,801,080 | ||||||
Series B 5.00% 3/15/34 | 5,000,000 | 5,318,400 | ||||||
New York State Urban Development Revenue | 3,000,000 | 3,755,100 | ||||||
Port Authority of Allegheny County, Pennsylvania | 6,000,000 | 6,188,640 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
Series A-1 4.75% 7/1/53 | 5,535,000 | 5,701,936 | ||||||
Series A-1 5.00% 7/1/58 | 12,392,000 | 12,987,436 | ||||||
Series A-1 5.146% 7/1/51 ^ | 6,235,000 | 1,273,436 | ||||||
Series A-1 5.266% 7/1/46 ^ | 15,610,000 | 4,422,313 | ||||||
Series A-2 4.329% 7/1/40 | 2,545,000 | 2,563,146 | ||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | 30,000 | 26,532 | ||||||
|
| |||||||
58,786,699 | ||||||||
|
|
31
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Opportunities Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
State General Obligation Bonds – 9.30% | ||||||||
California State | 5,000,000 | $ | 5,509,950 | |||||
Commonwealth of Massachusetts | ||||||||
Series A 5.50% 8/1/30 (AMBAC) | 1,000,000 | 1,403,980 | ||||||
Series E 5.00% 8/1/35 | 5,000,000 | 5,227,600 | ||||||
Commonwealth of Puerto Rico | ||||||||
(General Obligation) Series A 8.00% 7/1/35 ‡ | 2,755,000 | 1,659,887 | ||||||
(Public Improvement) | ||||||||
Series A 5.00% 7/1/24 ‡ | 725,000 | 510,219 | ||||||
Series A 5.00% 7/1/41 ‡ | 1,140,000 | 718,200 | ||||||
Series A 5.125% 7/1/37 ‡ | 1,570,000 | 1,010,687 | ||||||
Series A 5.25% 7/1/30 ‡ | 2,300,000 | 1,624,375 | ||||||
Series A 5.25% 7/1/31 ‡ | 485,000 | 341,925 | ||||||
Series A 5.25% 7/1/34 ‡ | 595,000 | 419,475 | ||||||
Series A 5.50% 7/1/39 ‡ | 1,050,000 | 689,063 | ||||||
Series A 6.00% 7/1/38 ‡ | 545,000 | 387,631 | ||||||
Series B 5.00% 7/1/35 ‡ | 495,000 | 347,737 | ||||||
Illinois State | ||||||||
5.00% 2/1/39 | 1,200,000 | 1,240,428 | ||||||
5.25% 2/1/30 | 3,490,000 | 3,656,682 | ||||||
5.25% 2/1/32 | 1,180,000 | 1,232,970 | ||||||
5.25% 2/1/33 | 740,000 | 771,805 | ||||||
Series A 4.00% 12/1/33 | 1,010,000 | 1,000,132 | ||||||
Series B 4.00% 11/1/39 | 5,320,000 | 5,189,713 | ||||||
|
| |||||||
32,942,459 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 25.32% | ||||||||
Atlanta, Georgia Airport General Revenue | 5,000,000 | 5,105,650 | ||||||
Broward County, Florida Airport System Revenue | 5,000,000 | 5,447,600 | ||||||
Chicago, Illinois O’Hare International Airport Revenue | ||||||||
Series A 5.00% 1/1/37 (AMT) | 1,690,000 | 2,037,413 | ||||||
Series A 5.00% 1/1/38 (AMT) | 600,000 | 721,218 | ||||||
Dallas Fort Worth, Texas International Airport | 5,000,000 | 5,651,850 | ||||||
Denver, Colorado City & County Airport System Revenue | 6,000,000 | 7,150,020 | ||||||
Massachusetts Port Authority | ||||||||
Series A 5.00% 7/1/37 (AMT) | 4,000,000 | 4,868,880 | ||||||
Series A 5.00% 7/1/39 (AMT) | 2,945,000 | 3,564,451 | ||||||
Series A 5.00% 7/1/40 (AMT) | 1,825,000 | 2,203,377 |
32
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Metropolitan Nashville, Tennessee Airport Authority | 5,020,000 | $ | 5,698,754 | |||||
Metropolitan Transportation Authority Revenue, New York | 750,000 | 860,033 | ||||||
Montgomery County, Texas Toll Road Authority | 1,750,000 | 1,884,103 | ||||||
New Jersey State Turnpike Authority Turnpike Revenue | 6,000,000 | 6,722,400 | ||||||
New York Transportation Development Special Facilities Revenue | 3,000,000 | 3,217,230 | ||||||
North Carolina Turnpike Authority | 3,000,000 | 3,637,290 | ||||||
North Texas Tollway Authority Revenue | 2,000,000 | 2,146,800 | ||||||
Ohio Turnpike & Infrastructure Commission | 300,000 | 331,863 | ||||||
Pennsylvania Turnpike Commission Revenue | ||||||||
Series A-2 5.00% 12/1/43 | 2,000,000 | 2,398,480 | ||||||
Series C 5.00% 12/1/44 | 1,000,000 | 1,118,290 | ||||||
Port Beaumont Navigation District, Texas | 750,000 | 777,173 | ||||||
Salt Lake City, Utah Airport Revenue | 4,000,000 | 4,837,160 | ||||||
San Francisco, California City & County Airports Commission | 5,000,000 | 6,038,350 | ||||||
South Jersey Port, New Jersey | ||||||||
(Subordinated Marine Terminal) | ||||||||
Series B 5.00% 1/1/42 (AMT) | 1,000,000 | 1,060,860 | ||||||
Series B 5.00% 1/1/48 (AMT) | 5,000,000 | 5,255,500 | ||||||
Triborough Bridge & Tunnel Authority, New York | 1,080,000 | 1,355,378 | ||||||
Washington, District of Columbia Metropolitan Area Transit Authority | 1,000,000 | 1,197,250 | ||||||
Wayne County, Michigan Airport Authority | ||||||||
(Detroit Metropolitan Wayne County Airport) | ||||||||
Series A 5.00% 12/1/42 | 2,500,000 | 2,702,300 | ||||||
Series D 5.00% 12/1/45 (AGM) | 750,000 | 850,650 |
33
Table of Contents
Schedules of investments | ||
Delaware Tax-Exempt Opportunities Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Westchester County, New York Industrial Development Agency | 775,000 | $ | 842,929 | |||||
|
| |||||||
89,683,252 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 1.11% | ||||||||
Mississippi Development Bank | 1,000,000 | 1,179,250 | ||||||
Philadelphia, Pennsylvania Water & Wastewater Revenue | 1,000,000 | 1,100,530 | ||||||
Saginaw, Michigan Water Supply System Revenue | 500,000 | 524,765 | ||||||
Toledo, Ohio Water System Revenue | 1,000,000 | 1,111,700 | ||||||
|
| |||||||
3,916,245 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $331,284,844) | 349,583,576 | |||||||
|
| |||||||
Total Value of Securities – 98.68% | $ | 349,583,576 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $ 31,855,955, which represents 8.99% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
§ | 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 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation |
AGM – Insured by Assured Guaranty Municipal Corporation |
AMBAC – Insured by AMBAC Assurance Corporation |
AMT – Subject to Alternative Minimum Tax |
FHA – Federal Housing Administration |
NATL – Insured by National Public Finance Guarantee Corporation |
PSF – Guaranteed by Permanent School Fund |
34
Table of Contents
Summary of abbreviations (continued):
USD – US Dollar |
See accompanying notes, which are an integral part of the financial statements.
35
Table of Contents
Schedules of investments | ||
Delaware Tax-Free California II Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 98.75% | ||||||||
Corporate Revenue Bonds – 5.49% | ||||||||
California Pollution Control Financing Authority Revenue | 300,000 | $ | 161,250 | |||||
Golden State Tobacco Securitization Settlement Revenue | ||||||||
(Asset-Backed) Series A-2 5.00% 6/1/47 | 400,000 | 405,012 | ||||||
(Capital Appreciation - Asset-Backed-1st Subordinate) Series B 1.068% 6/1/47 ^ | 720,000 | 150,559 | ||||||
Inland Empire Tobacco Securitization | 10,785,000 | 398,506 | ||||||
Tobacco Securitization Authority of Southern California | ||||||||
(Asset-Backed-2nd Subordinate Lien) Series C 0.558% 6/1/46 ^ | 3,905,000 | 693,059 | ||||||
(Asset-Backed-3rd Subordinate Lien) Series D 0.307% 6/1/46 ^ | 1,455,000 | 231,185 | ||||||
|
| |||||||
2,039,571 | ||||||||
|
| |||||||
Education Revenue Bonds – 15.18% | ||||||||
California Educational Facilities Authority Revenue | 1,100,000 | 1,754,346 | ||||||
California Municipal Finance Authority | ||||||||
(Emerson College Issue) Series B 5.00% 1/1/32 | 1,000,000 | 1,161,380 | ||||||
(Julian Charter School Project) Series A 144A 5.625% 3/1/45 # | 250,000 | 248,955 | ||||||
California Public Finance Authority Educational Facilities Revenue | 350,000 | 356,601 | ||||||
California School Finance Authority | ||||||||
(Arts in Action Charter Schools- Obligated Group) Series A 144A 5.00% 6/1/50 # | 605,000 | 625,685 | ||||||
(ICEF - View Park Elementary and Middle Schools) Series A 5.625% 10/1/34 | 300,000 | 319,089 | ||||||
Series A 5.875% 10/1/44 | 300,000 | 319,821 | ||||||
California Statewide Communities Development Authority College Housing Revenue | 550,000 | 546,623 | ||||||
California Statewide Communities Development Authority Student Housing Revenue | 300,000 | 304,647 | ||||||
|
| |||||||
5,637,147 | ||||||||
|
| |||||||
Electric Revenue Bonds – 4.51% | ||||||||
Los Angeles Department of Water & Power Revenue | 1,000,000 | 1,219,960 |
36
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Electric Revenue Bonds (continued) | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 6.75% 7/1/36 ‡ | 185,000 | $ | 131,813 | |||||
Series TT 5.00% 7/1/32 ‡ | 340,000 | 237,150 | ||||||
Series XX 5.25% 7/1/40 ‡ | 120,000 | 84,000 | ||||||
|
| |||||||
1,672,923 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 5.13% | ||||||||
California Health Facilities Financing Authority Revenue | 1,000,000 | 1,149,840 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Loma Linda University Medical Center) Series A 144A 5.25% 12/1/56 # | 300,000 | 323,130 | ||||||
Series A 144A 5.50% 12/1/58 # | 400,000 | 432,392 | ||||||
|
| |||||||
1,905,362 | ||||||||
|
| |||||||
Housing Revenue Bonds – 2.45% | ||||||||
California Housing Finance Agency | 496,264 | 532,784 | ||||||
Independent Cities Finance Authority, California | 350,000 | 378,423 | ||||||
|
| |||||||
911,207 | ||||||||
|
| |||||||
Lease Revenue Bonds – 10.05% | ||||||||
California Municipal Finance Authority | 750,000 | 901,973 | ||||||
California State Public Works Board Lease Revenue | ||||||||
(Various Capital Projects) Series I 5.50% 11/1/30 | 1,000,000 | 1,150,530 | ||||||
(Various Judicial Council Projects) Series D 5.00% 12/1/29 | 500,000 | 530,810 | ||||||
Golden State Tobacco Securitization Settlement Revenue | 1,000,000 | 1,150,500 | ||||||
|
| |||||||
3,733,813 | ||||||||
|
| |||||||
Local General Obligation Bonds – 10.00% | ||||||||
Fresno Unified School District | 500,000 | 604,705 | ||||||
Los Angeles Unified School District | 1,000,000 | 1,177,770 | ||||||
Moreno Valley Unified School District | 500,000 | 620,600 | ||||||
Natomas Unified School District | 130,000 | 134,559 |
37
Table of Contents
Schedules of investments | ||
Delaware Tax-Free California II Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Local General Obligation Bonds (continued) | ||||||||
New Haven Unified School District | 1,000,000 | $ | 1,176,820 | |||||
|
| |||||||
3,714,454 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 10.27% | ||||||||
Bay Area, California Toll Authority | 1,000,000 | 1,129,080 | ||||||
California Educational Facilities Authority Revenue | 500,000 | 535,260 | ||||||
California State Public Works Board Lease Revenue | 1,000,000 | 1,102,210 | ||||||
Centinela Valley Union High School District | 500,000 | 525,890 | ||||||
San Joaquin County Transportation Authority | 250,000 | 259,183 | ||||||
West Contra Costa Unified School District (2010 Election) | 250,000 | 263,620 | ||||||
|
| |||||||
3,815,243 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 8.98% | ||||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) Series A-1 4.75% 7/1/53 | 1,035,000 | 1,066,215 | ||||||
Series A-1 5.00% 7/1/58 | 315,000 | 330,136 | ||||||
Series A-2 4.329% 7/1/40 | 365,000 | 367,603 | ||||||
Sacramento Transient Occupancy Tax Revenue | 1,200,000 | 1,349,172 | ||||||
Virgin Islands Public Finance Authority Revenue | ||||||||
(Matching Fund Loan Senior Lien) Series A 4.00% 10/1/22 | 130,000 | 125,364 | ||||||
Series A 5.00% 10/1/29 | 100,000 | 94,928 | ||||||
|
| |||||||
3,333,418 | ||||||||
|
| |||||||
State General Obligation Bonds – 10.89% | ||||||||
California State | ||||||||
(Various Purposes) 5.00% 9/1/31 | 1,000,000 | 1,124,670 | ||||||
5.00% 4/1/37 | 2,000,000 | 2,203,980 | ||||||
Commonwealth of Puerto Rico | ||||||||
(General Obligation) Series A 8.00% 7/1/35 ‡ | 270,000 | 162,675 | ||||||
(Public Improvement) Series A 5.00% 7/1/24 ‡ | 80,000 | 56,300 | ||||||
Series A 5.00% 7/1/41 ‡ | 125,000 | 78,750 | ||||||
Series A 5.25% 7/1/34 ‡ | 65,000 | 45,825 |
38
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
State General Obligation Bonds (continued) | ||||||||
Commonwealth of Puerto Rico | ||||||||
(Public Improvement) Series A 5.375% 7/1/33 ‡ | 135,000 | $ | 94,331 | |||||
Series B 5.75% 7/1/38 ‡ | 180,000 | 124,200 | ||||||
Series C 6.00% 7/1/39 ‡ | 165,000 | 114,675 | ||||||
(Unrefunded Balance - Public Improvement) Series B 5.00% 7/1/35 ‡ | 55,000 | 38,637 | ||||||
|
| |||||||
4,044,043 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 15.80% | ||||||||
Bay Area, California Toll Authority | 1,000,000 | 1,208,800 | ||||||
Port Authority of Guam Revenue | 375,000 | 418,163 | ||||||
San Francisco City & County Airports Commission | 1,000,000 | 1,243,780 | ||||||
San Francisco Municipal Transportation Agency Revenue 5.00% 3/1/32 | 1,000,000 | 1,108,230 | ||||||
San Jose, California Airport Revenue | ||||||||
Series B 5.00% 3/1/36 | 575,000 | 695,669 | ||||||
Series B 5.00% 3/1/42 | 1,000,000 | 1,193,720 | ||||||
|
| |||||||
5,868,362 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $34,415,336) | 36,675,543 | |||||||
|
| |||||||
| ||||||||
Short-Term Investment – 0.27%
| ||||||||
Variable Rate Demand Note – 0.27%¤ | ||||||||
University of California Series AL-2 0.05% 5/15/48 | 100,000 | 100,000 | ||||||
|
| |||||||
Total Short-Term Investment (cost $100,000) | 100,000 | |||||||
|
| |||||||
Total Value of Securities – 99.02% | $ | 36,775,543 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $3,397,789, which represents 9.15% of the Fund’s net assets. See Note 7 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 June 30, 2020. |
39
Table of Contents
Schedules of investments | ||
Delaware Tax-Free California II Fund |
§ | 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 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICEF – Inner City Education Foundation
LLC – Limited Liability Corporation
NATL – Insured by National Public Finance Guarantee Corporation
NCCD – National Campus and Community Development
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
40
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New Jersey Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 99.40% | ||||||||
Corporate Revenue Bonds – 5.49% | ||||||||
Cape May County Industrial Pollution Control Financing Authority Revenue | 1,350,000 | $ | 1,402,853 | |||||
New Jersey Tobacco Settlement Financing Corporation | 500,000 | 549,265 | ||||||
|
| |||||||
1,952,118 | ||||||||
|
| |||||||
Education Revenue Bonds – 12.19% | ||||||||
New Jersey Educational Facilities Authority Revenue | ||||||||
(Montclair State University) Series A 5.00% 7/1/39 | 1,000,000 | 1,091,430 | ||||||
Series D 5.00% 7/1/36 | 500,000 | 559,405 | ||||||
(Princeton University) Series I 5.00% 7/1/32 | 1,000,000 | 1,270,090 | ||||||
(Ramapo College) Series A 5.00% 7/1/35 (AGM) | 1,000,000 | 1,181,220 | ||||||
(Stevens Institute of Technology) Series A 4.00% 7/1/50 | 225,000 | 229,801 | ||||||
|
| |||||||
4,331,946 | ||||||||
|
| |||||||
Electric Revenue Bonds – 1.02% | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 6.75% 7/1/36 ‡ | 180,000 | 128,250 | ||||||
Series TT 5.00% 7/1/32 ‡ | 335,000 | 233,663 | ||||||
|
| |||||||
361,913 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 5.69% | ||||||||
New Jersey Health Care Facilities Financing Authority Revenue | ||||||||
(Hackensack Meridian Health Obligated Group) 5.00% 7/1/35 | 1,000,000 | 1,202,780 | ||||||
(Valley Health System Obligated Group) 4.00% 7/1/44 | 750,000 | 821,505 | ||||||
|
| |||||||
2,024,285 | ||||||||
|
| |||||||
Housing Revenue Bonds – 3.15% | ||||||||
New Jersey Housing & Mortgage Finance Agency | 1,000,000 | 1,120,510 | ||||||
|
| |||||||
1,120,510 | ||||||||
|
| |||||||
Lease Revenue Bonds – 12.97% | ||||||||
Garden State Preservation Trust | 1,000,000 | 1,244,270 | ||||||
Hudson County Improvement Authority Revenue | 1,000,000 | 1,204,080 | ||||||
Mercer County Improvement Authority Revenue | 500,000 | 598,340 | ||||||
New Jersey Economic Development Authority | 1,000,000 | 1,018,540 |
41
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New Jersey Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Lease Revenue Bonds (continued) | ||||||||
New Jersey State Transportation Trust Fund Authority Revenue | 500,000 | $ | 544,165 | |||||
|
| |||||||
4,609,395 | ||||||||
|
| |||||||
Local General Obligation Bonds – 17.13% | ||||||||
Bayonne | 500,000 | 592,480 | ||||||
Belleville Board of Education | 1,000,000 | 1,090,520 | ||||||
Ewing Township Board of Education | 1,000,000 | 1,162,240 | ||||||
Hudson | 1,370,000 | 1,575,952 | ||||||
Livingston Township School District | 1,000,000 | 1,190,110 | ||||||
Township of Montclair | 415,000 | 477,391 | ||||||
|
| |||||||
6,088,693 | ||||||||
|
| |||||||
Resource Recovery Revenue Bonds – 0.65% | ||||||||
Union County, New Jersey Improvement Authority | 250,000 | 231,393 | ||||||
|
| |||||||
231,393 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 24.78% | ||||||||
Bergen County Improvement Authority Revenue | 1,000,000 | 1,142,750 | ||||||
Burlington County Bridge Commission | ||||||||
(Governmental Loan Program) 4.00% 8/1/35 | 465,000 | 550,550 | ||||||
4.00% 8/1/36 | 480,000 | 566,097 | ||||||
Camden County, New Jersey Improvement Authority Revenue | 1,000,000 | 1,169,250 | ||||||
Essex County, New Jersey Improvement Authority Revenue | 1,000,000 | 1,337,610 | ||||||
Gloucester County Improvement Authority Revenue | 750,000 | 926,483 |
42
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Hudson County Improvement Authority Revenue | 500,000 | $ | 589,490 | |||||
Monmouth County Improvement Authority Revenue | ||||||||
5.00% 1/15/29 | 190,000 | 194,665 | ||||||
Series A 4.00% 8/1/38 | 250,000 | 298,080 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) Series A-1 4.75% 7/1/53 | 1,310,000 | 1,349,509 | ||||||
Series A-1 5.00% 7/1/58 | 360,000 | 377,298 | ||||||
Series A-2 4.329% 7/1/40 | 115,000 | 115,820 | ||||||
Virgin Islands Public Finance Authority | ||||||||
(Matching Fund Loan Note) 5.00% 10/1/29 | 100,000 | 94,928 | ||||||
Series A 4.00% 10/1/22 | 100,000 | 96,434 | ||||||
|
| |||||||
8,808,964 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.88% | ||||||||
Commonwealth of Puerto Rico | ||||||||
(General Obligation) Series A 8.00% 7/1/35 ‡ | 250,000 | 150,625 | ||||||
(Public Improvement) Series A 5.00% 7/1/24 ‡ | 75,000 | 52,781 | ||||||
Series A 5.00% 7/1/41 ‡ | 120,000 | 75,600 | ||||||
Series A 5.25% 7/1/34 ‡ | 60,000 | 42,300 | ||||||
Series A 5.375% 7/1/33 ‡ | 120,000 | 83,850 | ||||||
Series B 5.75% 7/1/38 ‡ | 175,000 | 120,750 | ||||||
Series C 6.00% 7/1/39 ‡ | 155,000 | 107,725 | ||||||
(Unrefunded Balance - Public Improvement) Series B 5.00% 7/1/35 ‡ | 50,000 | 35,125 | ||||||
|
| |||||||
668,756 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 14.45% | ||||||||
Delaware River Joint Toll Bridge Commission | ||||||||
(Pennsylvania - New Jersey) 5.00% 7/1/33 | 500,000 | 624,620 | ||||||
5.00% 7/1/34 | 250,000 | 311,607 | ||||||
Series A 5.00% 7/1/44 | 250,000 | 315,840 | ||||||
Delaware River Port Authority Revenue | 1,000,000 | 1,124,800 | ||||||
New Jersey Turnpike Authority Revenue | 500,000 | 599,020 | ||||||
Port Authority of Guam Revenue | 375,000 | 418,163 |
43
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New Jersey Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Port Authority of New York & New Jersey | 500,000 | $ | 581,155 | |||||
South Jersey Port Corporation | 535,000 | 562,339 | ||||||
South Jersey Transportation Authority Revenue | 500,000 | 597,510 | ||||||
|
| |||||||
5,135,054 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $32,897,103) | 35,333,027 | |||||||
|
| |||||||
Total Value of Securities – 99.40% | $ | 35,333,027 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $231,393, which represents 0.65% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
44
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New York II Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 98.86% | ||||||||
Corporate Revenue Bonds – 2.76% | ||||||||
Erie, New York Tobacco Asset Securitization | 39,600,000 | $ | 1,626,768 | |||||
New York City Industrial Development Agency Revenue | 1,160,000 | 1,165,452 | ||||||
Westchester Tobacco Asset Securitization | 750,000 | 779,197 | ||||||
|
| |||||||
3,571,417 | ||||||||
|
| |||||||
Education Revenue Bonds – 25.71% | ||||||||
Build NYC Resource, New York | 700,000 | 724,227 | ||||||
Dutchess County Local Development Revenue | ||||||||
(Vassar College Project) 5.00% 7/1/35 | 1,000,000 | 1,205,690 | ||||||
5.00% 7/1/36 | 1,000,000 | 1,201,580 | ||||||
5.00% 7/1/37 | 1,000,000 | 1,198,450 | ||||||
Madison County Capital Resource Revenue | ||||||||
(Colgate University Refunding Project) 5.00% 7/1/35 | 1,000,000 | 1,172,520 | ||||||
Series B 5.00% 7/1/39 | 1,000,000 | 1,164,330 | ||||||
Monroe County Industrial Development Revenue | 1,000,000 | 1,210,080 | ||||||
New York State Dormitory Authority Revenue | ||||||||
5.625% 10/1/29 (AGC) | 375,000 | 376,553 | ||||||
Series A 5.00% 7/1/25 | 1,140,000 | 1,142,268 | ||||||
(Colgate University) 6.00% 7/1/21 (NATL) | 1,020,000 | 1,049,672 | ||||||
(Dormitory Facilities) Series A 5.00% 7/1/35 | 50,000 | 61,565 | ||||||
Series A 5.00% 7/1/37 | 2,200,000 | 2,690,622 | ||||||
Series A 5.00% 7/1/42 | 1,645,000 | 1,933,878 | ||||||
(Fordham University) 4.00% 7/1/50 | 500,000 | 546,510 | ||||||
(New York University) Series A 5.00% 7/1/36 | 2,000,000 | 2,397,660 | ||||||
Series A 5.00% 7/1/39 | 2,000,000 | 2,369,920 | ||||||
(School Districts Financing Program) 5.00% 10/1/42 (AGM) | 3,565,000 | 4,278,249 | ||||||
(Skidmore College) Series A 5.00% 7/1/27 | 500,000 | 520,050 | ||||||
(Vaughn College Of Aeronautics And Technology) 144A 5.50% 12/1/46 # | 300,000 | 290,649 | ||||||
Onondaga Civic Development Revenue | 255,000 | 268,280 |
45
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New York II Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
Saratoga County Capital Resource Revenue | ||||||||
(Skidmore College Project) 5.00% 7/1/43 | 3,570,000 | $ | 4,276,610 | |||||
5.00% 7/1/48 | 1,000,000 | 1,189,970 | ||||||
Schenectady County Capital Resource Revenue | 1,100,000 | 1,288,078 | ||||||
Yonkers Economic Development | 640,000 | 655,718 | ||||||
|
| |||||||
33,213,129 | ||||||||
|
| |||||||
Electric Revenue Bonds – 7.10% | ||||||||
Build NYC Resource, New York | 500,000 | 525,875 | ||||||
Long Island Power Authority Electric System Revenue | ||||||||
5.00% 9/1/39 | 2,000,000 | 2,467,840 | ||||||
5.00% 9/1/42 | 2,000,000 | 2,406,560 | ||||||
Series A 5.00% 9/1/44 | 1,200,000 | 1,375,524 | ||||||
Series B 5.00% 9/1/41 | 1,000,000 | 1,167,930 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 6.75% 7/1/36 ‡ | 625,000 | 445,313 | ||||||
Series TT 5.00% 7/1/32 ‡ | 1,120,000 | 781,200 | ||||||
|
| |||||||
9,170,242 | ||||||||
|
| |||||||
Healthcare Revenue Bond – 2.06% | ||||||||
Nassau County Industrial Development Agency | 571,875 | 489,468 | ||||||
New York State Dormitory Authority Revenue | ||||||||
(Montefiore Obligated Group) Series A 4.00% 9/1/50 | 1,500,000 | 1,617,945 | ||||||
(NYU Langone Hospitals Obligated Group) Series A 4.00% 7/1/53 | 500,000 | 557,445 | ||||||
|
| |||||||
2,664,858 | ||||||||
|
| |||||||
Housing Revenue Bond – 1.47% | ||||||||
New York City Housing Development Revenue | 1,840,000 | 1,900,609 | ||||||
|
| |||||||
1,900,609 | ||||||||
|
| |||||||
Lease Revenue Bonds – 7.89% | ||||||||
Hudson Yards Infrastructure Revenue | 730,000 | 752,601 | ||||||
New York Liberty Development Revenue | 500,000 | 519,025 |
46
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Lease Revenue Bonds (continued) | ||||||||
New York Liberty Development Revenue | 250,000 | $ | 260,393 | |||||
New York State Dormitory Authority Revenue | 2,500,000 | 3,235,450 | ||||||
New York State Environmental Facilities Revenue | 2,175,000 | 2,729,321 | ||||||
Syracuse Industrial Development Agency Revenue | 2,600,000 | 2,701,270 | ||||||
|
| |||||||
10,198,060 | ||||||||
|
| |||||||
Local General Obligation Bonds – 5.10% | ||||||||
New York, General Obligation | ||||||||
Subseries B-1 5.00% 12/1/34 | 2,500,000 | 3,020,775 | ||||||
Subseries F-1 5.00% 4/1/35 | 1,895,000 | 2,342,789 | ||||||
Subseries F-1 5.00% 4/1/39 | 1,000,000 | 1,220,780 | ||||||
|
| |||||||
6,584,344 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 4.33% | ||||||||
Buffalo & Erie County Industrial Land Development | 1,000,000 | 1,040,880 | ||||||
New York State Dormitory Authority Revenue | ||||||||
Series A 5.00% 3/15/38-23§ | 2,000,000 | 2,254,580 | ||||||
(New York University) Series A 5.00% 7/1/37-23§ | 1,000,000 | 1,139,170 | ||||||
Onondaga County Trust For Cultural Resources | 1,000,000 | 1,156,550 | ||||||
|
| |||||||
5,591,180 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 22.72% | ||||||||
Metropolitan Transportation Authority Revenue | 3,500,000 | 4,072,110 | ||||||
New York City Transitional Finance Authority Building Aid Revenue | 1,000,000 | 1,238,110 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue | ||||||||
(Subordinate) Series C 5.00% 11/1/33 | 1,000,000 | 1,014,030 | ||||||
Subseries B-1 5.00% 8/1/42 | 2,000,000 | 2,284,120 | ||||||
Subseries D-1 5.00% 2/1/28 | 2,500,000 | 2,563,350 | ||||||
New York City, New York Industrial Development Agency | 1,000,000 | 1,005,110 |
47
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New York II Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
New York Convention Center Development Revenue | 1,000,000 | $ | 1,072,960 | |||||
New York State Dormitory Authority Revenue | ||||||||
Series A 5.00% 3/15/36 | 1,000,000 | 1,244,450 | ||||||
(General Purpose) Series A 5.00% 3/15/40 | 5,000,000 | 6,205,600 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) Series A-1 4.75% 7/1/53 | 3,965,000 | 4,084,584 | ||||||
Series A-1 5.00% 7/1/58 | 2,340,000 | 2,452,437 | ||||||
Series A-2 4.329% 7/1/40 | 1,370,000 | 1,379,768 | ||||||
Series A-2 4.536% 7/1/53 | 330,000 | 335,224 | ||||||
Series A-2 4.784% 7/1/58 | 100,000 | 103,355 | ||||||
Virgin Islands Public Finance Authority Revenue | ||||||||
(Virgin Islands Matching Fund Loan Note) 5.00% 10/1/29 | 170,000 | 161,378 | ||||||
Series A 4.00% 10/1/22 | 135,000 | 130,186 | ||||||
|
| |||||||
29,346,772 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.80% | ||||||||
Commonwealth of Puerto Rico | ||||||||
(General Obligation) Series A 8.00% 7/1/35 ‡ | 870,000 | 524,175 | ||||||
(Public Improvement) Series A 5.00% 7/1/24 ‡ | 270,000 | 190,013 | ||||||
Series A 5.00% 7/1/41 ‡ | 410,000 | 258,300 | ||||||
Series A 5.25% 7/1/34 ‡ | 220,000 | 155,100 | ||||||
Series A 5.375% 7/1/33 ‡ | 405,000 | 282,994 | ||||||
Series B 5.75% 7/1/38 ‡ | 590,000 | 407,100 | ||||||
Series C 6.00% 7/1/39 ‡ | 535,000 | 371,825 | ||||||
(Unrefunded Balance - Public Improvement) Series B 5.00% 7/1/35 ‡ | 185,000 | 129,963 | ||||||
|
| |||||||
2,319,470 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 12.01% | ||||||||
Metropolitan Transportation Authority Revenue | 750,000 | 860,033 | ||||||
New York State Thruway Authority Revenue | 1,435,000 | 1,751,991 | ||||||
New York Transportation Development Special Facilities Revenue | 1,000,000 | 1,072,410 | ||||||
Niagara Frontier Transportation Authority Revenue | 715,000 | 880,122 |
48
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Niagara Frontier Transportation Authority Revenue | ||||||||
(Buffalo Niagara International Airport) 5.00% 4/1/35 (AMT) | 775,000 | $ | 946,949 | |||||
5.00% 4/1/37 (AMT) | 750,000 | 909,517 | ||||||
5.00% 4/1/39 (AMT) | 350,000 | 422,044 | ||||||
Port Authority of Guam | 1,375,000 | 1,533,263 | ||||||
Port Authority of New York & New Jersey | 2,500,000 | 2,973,775 | ||||||
Triborough Bridge & Tunnel Authority Revenue | ||||||||
(MTA Bridges and Tunnels) Series A 5.00% 11/15/41 | 2,000,000 | 2,353,340 | ||||||
Series A 5.00% 11/15/49 | 490,000 | 614,940 | ||||||
Westchester County Industrial Development Agency | 1,100,000 | 1,196,415 | ||||||
|
| |||||||
15,514,799 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 5.91% | ||||||||
New York City Water & Sewer System Revenue | ||||||||
Series A 6.00% 6/15/21 (AGM) | 1,500,000 | 1,581,135 | ||||||
Series EE 5.00% 6/15/40 | 2,500,000 | 3,110,775 | ||||||
(Second General Resolution) Series HH 5.00% 6/15/39 | 2,000,000 | 2,353,940 | ||||||
Series GG-1 4.00% 6/15/50 | 500,000 | 585,340 | ||||||
|
| |||||||
7,631,190 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $118,575,424) | 127,706,070 | |||||||
|
| |||||||
Total Value of Securities – 98.86% | $ | 127,706,070 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $3,516,584, which represents 2.72% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
§ | 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 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
49
Table of Contents
Schedules of investments | ||
Delaware Tax-Free New York II Fund |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
50
Table of Contents
Schedules of investments | ||
Delaware Tax-Free Oregon Fund | June 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 101.73% | ||||||||
| ||||||||
Corporate Revenue Bond – 0.47% | ||||||||
Oregon State Business Development Commission Economic Development Revenue | 300,000 | $ | 206,304 | |||||
|
| |||||||
206,304 | ||||||||
|
| |||||||
Education Revenue Bonds – 6.35% | ||||||||
Oregon Health & Science University Revenue | 600,000 | 694,098 | ||||||
Oregon State Facilities Authority Revenue | 1,000,000 | 981,960 | ||||||
University of Oregon General Revenue | 1,000,000 | 1,142,370 | ||||||
|
| |||||||
2,818,428 | ||||||||
|
| |||||||
Electric Revenue Bonds – 0.98% | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 6.75% 7/1/36 ‡ | 240,000 | 171,000 | ||||||
Series TT 5.00% 7/1/32 ‡ | 380,000 | 265,050 | ||||||
|
| |||||||
436,050 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 13.34% | ||||||||
Clackamas County Hospital Facility Authority | 500,000 | 507,100 | ||||||
Hospital Facilities Authority of Multnomah County, Oregon | 900,000 | 915,957 | ||||||
Oregon State Facilities Authority Revenue | ||||||||
(Providence Health & Services) Series C 5.00% 10/1/45 | 1,650,000 | 1,876,644 | ||||||
(Samaritan Health Services Project) Series A 5.00% 10/1/40 | 1,250,000 | 1,514,000 | ||||||
Salem, Oregon Hospital Facility Authority Revenue | 1,000,000 | 1,107,470 | ||||||
|
| |||||||
5,921,171 | ||||||||
|
| |||||||
Housing Revenue Bonds – 3.92% | ||||||||
Home Forward Multifamily Housing Revenue | 565,000 | 631,297 | ||||||
Oregon State Housing & Community Services Department Mortgage Revenue | 1,000,000 | 1,107,820 | ||||||
|
| |||||||
1,739,117 | ||||||||
|
|
51
Table of Contents
Schedules of investments | ||
Delaware Tax-Free Oregon Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Local General Obligation Bonds – 30.48% | ||||||||
Central Oregon Community College | 500,000 | $ | 501,200 | |||||
Clackamas County School District No. 12 North Clackamas | 2,000,000 | 2,473,880 | ||||||
Clackamas County School District No. 7J Lake Oswego | 1,000,000 | 1,045,800 | ||||||
Columbia County School District No. 502 | 575,000 | 710,976 | ||||||
Linn County Community School District No. 9 Lebanon | 1,000,000 | 1,318,300 | ||||||
Marion County School District No. 103 Woodburn | ||||||||
5.00% 6/1/30 | 300,000 | 396,162 | ||||||
5.00% 6/15/35 | 500,000 | 590,855 | ||||||
Newport, Oregon | 1,225,000 | 1,077,167 | ||||||
Portland Oregon Revenue | 1,000,000 | 1,287,220 | ||||||
Redmond, Oregon Series B-1 | 1,000,000 | 1,262,290 | ||||||
Salem-Keizer School District No. 24J | 1,000,000 | 1,286,250 | ||||||
Santiam Canyon School District No. 129J | 475,000 | 595,574 | ||||||
Washington County Oregon School District No. 15 Forest Grove | 1,000,000 | 982,120 | ||||||
|
| |||||||
13,527,794 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 14.93% | ||||||||
Eugene Oregon Electric Utility System Revenue | 2,000,000 | 2,193,500 | ||||||
Multnomah County School District No. 3 Parkrose | 1,000,000 | 1,046,840 | ||||||
Oregon Health & Science University Revenue | 1,475,000 | 1,612,323 | ||||||
Umatilla County Oregon School District No. 16R Pendleton | 1,000,000 | 1,183,240 | ||||||
Washington & Multnomah Counties Oregon School District | 500,000 | 590,540 | ||||||
|
| |||||||
6,626,443 | ||||||||
|
|
52
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds – 10.46% | ||||||||
Oregon State Department Administrative Services Lottery Revenue | 1,500,000 | $ | 1,768,380 | |||||
Portland Oregon Revenue | 500,000 | 522,055 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) Series A-1 4.75% 7/1/53 | 1,380,000 | 1,421,620 | ||||||
Series A-1 5.273% 7/1/46 ^ | 670,000 | 189,811 | ||||||
Series A-2 4.329% 7/1/40 | 510,000 | 513,636 | ||||||
Virgin Islands Public Finance Authority Revenue | ||||||||
(Virgin Islands Matching Fund Loan Note) Series A 4.00% 10/1/22 | 135,000 | 130,185 | ||||||
Series A 5.00% 10/1/29 | 100,000 | 94,928 | ||||||
|
| |||||||
4,640,615 | ||||||||
|
| |||||||
State General Obligation Bonds – 6.12% | ||||||||
Commonwealth of Puerto Rico | ||||||||
(General Obligation) Series A 8.00% 7/1/35 ‡ | 305,000 | 183,763 | ||||||
(Public Improvement) Series A 5.00% 7/1/24 ‡ | 95,000 | 66,856 | ||||||
Series A 5.00% 7/1/41 ‡ | 140,000 | 88,200 | ||||||
Series A 5.25% 7/1/34 ‡ | 75,000 | 52,875 | ||||||
Series A 5.375% 7/1/33 ‡ | 140,000 | 97,825 | ||||||
Series B 5.75% 7/1/38 ‡ | 200,000 | 138,000 | ||||||
Series C 6.00% 7/1/39 ‡ | 180,000 | 125,100 | ||||||
(Unrefunded Balance - Public Improvement) Series B 5.00% 7/1/35 ‡ | 65,000 | 45,663 | ||||||
Oregon State | ||||||||
(Article XI-Q State Projects) Series A 5.00% 5/1/44 | 1,000,000 | 1,274,370 | ||||||
Series K 5.00% 11/1/44 | 500,000 | 643,670 | ||||||
|
| |||||||
2,716,322 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 8.03% | ||||||||
Oregon State Department of Transportation Highway User Tax Revenue | 1,000,000 | 1,289,540 | ||||||
Port Authority of Guam Revenue | 375,000 | 418,163 | ||||||
Port of Portland Oregon Airport Revenue | ||||||||
5.00% 7/1/42 (AMT) | 1,100,000 | 1,271,006 | ||||||
(Portland International Airport) 5.00% 7/1/31 | 500,000 | 587,030 | ||||||
|
| |||||||
3,565,739 | ||||||||
|
|
53
Table of Contents
Schedules of investments | ||
Delaware Tax-Free Oregon Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Water & Sewer Revenue Bonds – 6.65% | ||||||||
Hermiston, Oregon Water & Sewer System Revenue | 500,000 | $ | 579,865 | |||||
Portland, Oregon Water System Revenue | 500,000 | 518,495 | ||||||
Tigard, Oregon Water Revenue | 1,695,000 | 1,850,584 | ||||||
|
| |||||||
2,948,944 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $42,090,851) | 45,146,927 | |||||||
|
| |||||||
| ||||||||
Short-Term Investment – 0.79% |
| |||||||
| ||||||||
Variable Rate Demand Note – 0.79%¤ | ||||||||
Oregon State Facilities Authority Revenue (Peace Health) | 350,000 | 350,000 | ||||||
|
| |||||||
Total Short-Term Investment (cost $350,000) | 350,000 | |||||||
|
| |||||||
Total Value of Securities – 102.52% | $ | 45,496,927 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2020, the aggregate value of Rule 144A securities was $1,188,264, which represents 2.68% of the Fund’s net assets. See Note 7 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 June 30, 2020. |
§ | 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 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
54
Table of Contents
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
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.
55
Table of Contents
Statements of assets and liabilities
June 30, 2020 (Unaudited)
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments, at value1 | $505,022,333 | $349,583,576 | $36,775,543 | |||||||||||||||||||||
Cash | — | 688,513 | 35,586 | |||||||||||||||||||||
Interest receivable | 6,621,544 | 4,596,856 | 439,939 | |||||||||||||||||||||
Receivable for securities sold | 1,796,893 | — | — | |||||||||||||||||||||
Receivable for fund shares sold | 43,984 | 157,565 | 993 | |||||||||||||||||||||
Prepaid expenses | 18,781 | 3,011 | — | |||||||||||||||||||||
Other assets | 23,750 | 18,696 | 2,021 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total assets | 513,527,285 | 355,048,217 | 37,254,082 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Cash due to custodian | 2,727,830 | — | — | |||||||||||||||||||||
Payable for fund shares redeemed | 680,339 | 281,638 | 33,007 | |||||||||||||||||||||
Distribution payable | 189,520 | 117,685 | 10,464 | |||||||||||||||||||||
Investment management fees payable to affiliates | 209,240 | 141,165 | 6,975 | |||||||||||||||||||||
Distribution fees payable to affiliates | 60,585 | 71,371 | 7,340 | |||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses payable to non-affiliates | 56,925 | 48,983 | 1,731 | |||||||||||||||||||||
Accounting and administration expenses payable to non-affiliates | 50,861 | 40,450 | 19,208 | |||||||||||||||||||||
Reports and statements to shareholders expenses payable to non-affiliates | 44,368 | 38,958 | 5,768 | |||||||||||||||||||||
Audit and tax fees payable | 26,202 | 26,202 | 25,982 | |||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 3,997 | 2,765 | 291 | |||||||||||||||||||||
Trustees’ fees and expenses payable to affiliates | 3,853 | 2,646 | 282 | |||||||||||||||||||||
Accounting and administration expenses payable to affiliates | 1,775 | 1,329 | 433 | |||||||||||||||||||||
Legal fees payable to affiliates | 954 | 615 | 123 | |||||||||||||||||||||
Reports and statements to shareholders expenses payable to affiliates | 857 | 591 | 63 | |||||||||||||||||||||
Other accrued expenses | — | — | 3,627 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total liabilities | 4,057,306 | 774,398 | 115,294 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Net Assets | $509,469,979 | $354,273,819 | $37,138,788 | |||||||||||||||||||||
|
|
|
|
|
|
56
Table of Contents
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | ||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 485,288,738 | $ | 331,592,918 | $ | 34,517,642 | ||||||||||||||||||
Total distributable earnings (loss) | 24,181,241 | 22,680,901 | 2,621,146 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Net Assets | $ | 509,469,979 | $ | 354,273,819 | $ | 37,138,788 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net Asset Value | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Net assets | $ | 491,253,499 | $ | 348,904,933 | $ | 35,490,571 | ||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 52,543,950 | 21,024,644 | 2,804,387 | |||||||||||||||||||||
Net asset value per share | $ | 9.35 | $ | 16.60 | $ | 12.66 | ||||||||||||||||||
Sales charge | 2.75 | % | 4.50 | % | 4.50 | % | ||||||||||||||||||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ | 9.61 | $ | 17.38 | $ | 13.26 | ||||||||||||||||||
Institutional Class: | ||||||||||||||||||||||||
Net assets | $ | 18,206,314 | $ | 5,358,745 | $ | 1,638,189 | ||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 1,946,638 | 322,374 | 129,744 | |||||||||||||||||||||
Net asset value per share | $ | 9.35 | $ | 16.62 | $ | 12.63 | ||||||||||||||||||
Class R6: | ||||||||||||||||||||||||
Net assets | $ | 10,166 | $ | 10,141 | $ | 10,028 | ||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 1,088 | 612 | 794 | |||||||||||||||||||||
Net asset value per share | $ | 9.34 | $ | 16.57 | $ | 12.63 | ||||||||||||||||||
1 Investments, at cost | $ | 475,766,957 | $ | 331,284,844 | $ | 34,515,336 |
See accompanying notes, which are an integral part of the financial statements.
57
Table of Contents
Statements of assets and liabilities
Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments, at value1 | $ | 35,333,027 | $ | 127,706,070 | $ | 45,496,927 | ||||||||||||||||||
Cash | — | 10,907 | 39,400 | |||||||||||||||||||||
Interest receivable | 547,996 | 1,690,406 | 384,574 | |||||||||||||||||||||
Receivable for fund shares sold | 65,113 | 517 | 715 | |||||||||||||||||||||
Receivable for securities sold | — | — | 585,605 | |||||||||||||||||||||
Other assets | 1,777 | 5,720 | 1,955 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total assets | 35,947,913 | 129,413,620 | 46,509,176 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Cash due to custodian | 250,014 | — | — | |||||||||||||||||||||
Payable for fund shares redeemed | 70,771 | 16,852 | 6,163 | |||||||||||||||||||||
Distribution payable | 10,159 | 56,575 | 11,436 | |||||||||||||||||||||
Payable for securities purchased | — | — | 2,032,905 | |||||||||||||||||||||
Audit and tax fees payable | 25,982 | 25,983 | 25,982 | |||||||||||||||||||||
Accounting and administration expenses payable to non-affiliates | 19,099 | 25,248 | 19,551 | |||||||||||||||||||||
Distribution fees payable to affiliates | 6,901 | 26,125 | 8,396 | |||||||||||||||||||||
Other accrued expenses | 6,638 | 7,683 | 4,821 | |||||||||||||||||||||
Investment management fees payable to affiliates | 6,425 | 41,996 | 10,442 | |||||||||||||||||||||
Reports and statements to shareholders expenses payable to non-affiliates | 3,939 | 15,472 | 4,325 | |||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses payable to non-affiliates | 2,079 | 12,226 | 3,261 | |||||||||||||||||||||
Accounting and administration expenses payable to affiliates | 429 | 694 | 453 | |||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 280 | 1,012 | 346 | |||||||||||||||||||||
Trustees’ fees and expenses payable | 271 | 977 | 333 | |||||||||||||||||||||
Legal fees payable to affiliates | 121 | 285 | 136 | |||||||||||||||||||||
Reports and statements to shareholders expenses payable to affiliates | 60 | 217 | 74 | |||||||||||||||||||||
Total liabilities | 403,168 | 231,345 | 2,128,624 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Net Assets | $ | 35,544,745 | $ | 129,182,275 | $ | 44,380,552 | ||||||||||||||||||
|
|
|
|
|
|
58
Table of Contents
Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | ||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 32,628,545 | $ | 121,055,724 | $ | 42,128,411 | ||||||||||||||||||
Total distributable earnings (loss) | 2,916,200 | 8,126,551 | 2,252,141 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Net Assets | $ | 35,544,745 | $ | 129,182,275 | $ | 44,380,552 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net Asset Value | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Net assets | $ | 33,421,021 | $ | 127,159,864 | $ | 41,051,986 | ||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 2,601,313 | 8,885,653 | 3,037,229 | |||||||||||||||||||||
Net asset value per share | $ | 12.85 | $ | 14.31 | $ | 13.52 | ||||||||||||||||||
Sales charge | 4.50 | % | 4.50 | % | 4.50 | % | ||||||||||||||||||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ | 13.46 | $ | 14.98 | $ | 14.16 | ||||||||||||||||||
Institutional Class: | ||||||||||||||||||||||||
Net assets | $ | 2,113,607 | $ | 2,012,251 | $ | 3,318,330 | ||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 164,728 | 140,587 | 245,892 | |||||||||||||||||||||
Net asset value per share | $ | 12.83 | $ | 14.31 | $ | 13.50 | ||||||||||||||||||
Class R6: | ||||||||||||||||||||||||
Net assets | $ | 10,117 | $ | 10,160 | $ | 10,236 | ||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 790 | 709 | 759 | |||||||||||||||||||||
Net asset value per share | $ | 12.81 | $ | 14.33 | $ | 13.49 | ||||||||||||||||||
1 Investments, at cost | $ | 32,897,103 | $ | 118,575,424 | $ | 42,440,851 |
See accompanying notes, which are an integral part of the financial statements.
59
Table of Contents
Six months ended June 30, 2020 (Unaudited)
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | |||||||||||||||||||||||
Investment Income: | |||||||||||||||||||||||||
Interest | $ | 9,998,621 | $ | 7,401,820 | $ | 734,544 | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||
Management fees | 1,299,809 | 996,220 | 108,864 | ||||||||||||||||||||||
Distribution expenses — Class A | 628,258 | 446,642 | 48,064 | ||||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses | 220,438 | 180,986 | 16,167 | ||||||||||||||||||||||
Audit and tax fees | 72,558 | 70,773 | 38,903 | ||||||||||||||||||||||
Accounting and administration expenses | 63,884 | 50,565 | 23,566 | ||||||||||||||||||||||
Registration fees | 42,862 | 44,787 | 2,795 | ||||||||||||||||||||||
Reports and statements to shareholders expenses | 37,393 | 26,280 | 4,388 | ||||||||||||||||||||||
Trustees’ fees and expenses | 15,337 | 10,686 | 1,168 | ||||||||||||||||||||||
Custodian fees | 5,040 | 5,778 | 952 | ||||||||||||||||||||||
Legal fees | 3,219 | 351 | 240 | ||||||||||||||||||||||
Other | 17,497 | 13,510 | 4,806 | ||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
2,406,295 | 1,846,578 | 249,913 | |||||||||||||||||||||||
Less expenses waived | (2 | ) | (131,524 | ) | (68,457 | ) | |||||||||||||||||||
Less waived distribution expenses — Class A | (251,303 | ) | — | — | |||||||||||||||||||||
Less expenses paid indirectly | (3,432 | ) | (794 | ) | (774 | ) | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Total operating expenses | 2,151,558 | 1,714,260 | 180,682 | ||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Investment Income | 7,847,063 | 5,687,560 | 553,862 | ||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss): | |||||||||||||||||||||||||
Net realized gain on investments | 3,799,290 | 2,750,219 | 521,163 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (5,269,217 | ) | (5,584,348 | ) | (1,188,662 | ) | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Realized and Unrealized Loss | (1,469,927 | ) | (2,834,129 | ) | (667,499 | ) | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 6,377,136 | $ | 2,853,431 | $ | (113,637 | ) | ||||||||||||||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
60
Table of Contents
Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||||||
Investment Income: | |||||||||||||||||||||||||
Interest | $ | 628,025 | $ | 2,394,057 | $ | 749,828 | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||
Management fees | 103,574 | 362,310 | 123,949 | ||||||||||||||||||||||
Distribution expenses — Class A | 44,422 | 162,656 | 52,455 | ||||||||||||||||||||||
Audit and tax fees | 38,502 | 44,903 | 38,802 | ||||||||||||||||||||||
Accounting and administration expenses | 23,405 | 31,286 | 24,029 | ||||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses | 14,953 | 55,544 | 17,698 | ||||||||||||||||||||||
Reports and statements to shareholders expenses | 3,020 | 8,564 | 3,313 | ||||||||||||||||||||||
Registration fees | 2,446 | 2,843 | 2,720 | ||||||||||||||||||||||
Trustees’ fees and expenses | 1,113 | 3,885 | 1,327 | ||||||||||||||||||||||
Custodian fees | 603 | 1,505 | 601 | ||||||||||||||||||||||
Legal fees | 135 | 199 | 320 | ||||||||||||||||||||||
Other | 4,710 | 7,930 | 4,696 | ||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
236,883 | 681,625 | 269,910 | |||||||||||||||||||||||
Less expenses waived | (69,123 | ) | (115,516 | ) | (67,987 | ) | |||||||||||||||||||
Less expenses paid indirectly | (624 | ) | (1,446 | ) | (662 | ) | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Total operating expenses | 167,136 | 564,663 | 201,261 | ||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Investment Income | 460,889 | 1,829,394 | 548,567 | ||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss): | |||||||||||||||||||||||||
Net realized gain on investments | 363,800 | 942,207 | 372,773 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (543,381 | ) | (1,336,008 | ) | (79,898 | ) | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (179,581 | ) | (393,801 | ) | 292,875 | ||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 281,308 | $ | 1,435,593 | $ | 841,442 | |||||||||||||||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
61
Table of Contents
Statements of changes in net assets
Delaware Tax-Exempt Income Fund
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 7,847,063 | $ | 18,235,955 | ||||
Net realized gain | 3,799,290 | 5,544,925 | ||||||
Net change in unrealized appreciation (depreciation) | (5,269,217 | ) | 13,227,788 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 6,377,136 | 37,008,668 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (7,549,664 | ) | (16,666,273 | ) | ||||
Class B* | — | (6,716 | ) | |||||
Institutional Class** | (295,985 | ) | (1,535,771 | ) | ||||
Class R6*** | (159 | ) | (13,117 | ) | ||||
|
|
|
| |||||
(7,845,808 | ) | (18,221,877 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 5,427,693 | 25,373,973 | ||||||
Class B* | — | 25,950 | ||||||
Institutional Class** | 2,780,789 | 14,100,538 | ||||||
Class R6*** | — | 3,487,960 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 5,990,831 | 12,675,886 | ||||||
Class B* | — | 5,466 | ||||||
Institutional Class** | 247,941 | 1,348,494 | ||||||
Class R6*** | 159 | 221 | ||||||
|
|
|
| |||||
14,447,413 | 57,018,488 | |||||||
|
|
|
|
62
Table of Contents
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (52,375,561 | ) | $ | (98,963,617 | ) | ||
Class B* | — | (671,509 | ) | |||||
Institutional Class** | (4,177,656 | ) | (60,854,029 | ) | ||||
Class R6*** | — | (7,257,540 | ) | |||||
|
|
|
| |||||
(56,553,217 | ) | (167,746,695 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (42,105,804 | ) | (110,728,207 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (43,574,476 | ) | (91,941,416 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 553,044,455 | 644,985,871 | ||||||
|
|
|
| |||||
End of period | $ | 509,469,979 | $ | 553,044,455 | ||||
|
|
|
|
* | All Class B shares were converted into Class A shares on June 14, 2019. |
** | On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares. See Notes to Financial Statements. |
*** | On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares. See Notes to Financial Statements. |
See accompanying notes, which are an integral part of the financial statements.
63
Table of Contents
Statements of changes in net assets
Delaware Tax-Exempt Opportunities Fund
Six months ended 6/30/20 | Year ended 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 5,687,560 | $ | 11,760,842 | ||||
Net realized gain | 2,750,219 | 9,130,389 | ||||||
Net change in unrealized appreciation (depreciation) | (5,584,348 | ) | 10,191,966 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 2,853,431 | 31,083,197 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (5,484,820 | ) | (11,380,482 | ) | ||||
Class B* | — | (13,281 | ) | |||||
Institutional Class** | (85,457 | ) | (450,179 | ) | ||||
Class R6*** | (167 | ) | (55,324 | ) | ||||
|
|
|
| |||||
(5,570,444 | ) | (11,899,266 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 7,105,748 | 26,501,059 | ||||||
Class B* | — | 700 | ||||||
Institutional Class** | 1,921,694 | 5,875,001 | ||||||
Class R6*** | — | 7,247,252 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 4,627,812 | 9,450,138 | ||||||
Class B* | — | 10,449 | ||||||
Institutional Class** | 77,063 | 412,017 | ||||||
Class R6*** | 167 | 1,419 | ||||||
|
|
|
| |||||
13,732,484 | 49,498,035 | |||||||
|
|
|
|
64
Table of Contents
Six months ended 6/30/20 | Year ended 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (43,795,595 | ) | $ | (94,320,441 | ) | ||
Class B* | — | (1,479,329 | ) | |||||
Institutional Class** | (1,361,940 | ) | (23,712,240 | ) | ||||
Class R6*** | — | (14,821,534 | ) | |||||
|
|
|
| |||||
(45,157,535 | ) | (134,333,544 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (31,425,051 | ) | (84,835,509 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (34,142,064 | ) | (65,651,578 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 388,415,883 | 454,067,461 | ||||||
|
|
|
| |||||
End of period | $ | 354,273,819 | $ | 388,415,883 | ||||
|
|
|
|
* | All Class B shares were converted into Class A shares on June 14, 2019. |
** | On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares. See Notes to Financial Statements. |
*** | On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares. See Notes to Financial Statements. |
See accompanying notes, which are an integral part of the financial statements.
65
Table of Contents
Statements of changes in net assets
Delaware Tax-Free California II Fund
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 553,862 | $ | 1,340,120 | ||||
Net realized gain | 521,163 | 1,135,610 | ||||||
Net change in unrealized appreciation (depreciation) | (1,188,662) | 1,382,396 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (113,637 | ) | 3,858,126 | |||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (529,818 | ) | (1,199,236) | |||||
Institutional Class* | (17,859 | ) | (148,897 | ) | ||||
Class R6** | (149 | ) | (220 | ) | ||||
|
|
|
| |||||
(547,826 | ) | (1,348,353 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 492,489 | 5,217,411 | ||||||
Institutional Class* | 614,098 | 1,091,922 | ||||||
Class R6** | — | 9,998 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 446,971 | 966,284 | ||||||
Institutional Class* | 17,792 | 135,584 | ||||||
Class R6** | 149 | 208 | ||||||
|
|
|
| |||||
1,571,499 | 7,421,407 | |||||||
|
|
|
|
66
Table of Contents
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (7,008,551 | ) | $ | (15,013,908) | |||
Institutional Class* | (354,406 | ) | (7,624,995) | |||||
Class R6** | — | (6,958) | ||||||
|
|
|
| |||||
(7,362,957 | ) | (22,645,861 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (5,791,458 | ) | (15,224,454 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (6,452,921 | ) | (12,714,681 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 43,591,709 | 56,306,390 | ||||||
|
|
|
| |||||
End of period | $ | 37,138,788 | $ | 43,591,709 | ||||
|
|
|
|
* | On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares. See Notes to Financial Statements. |
** | On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares. See Notes to Financial Statements. |
See accompanying notes, which are an integral part of the financial statements.
67
Table of Contents
Statements of changes in net assets
Delaware Tax-Free New Jersey Fund
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 460,889 | $ | 1,256,125 | ||||
Net realized gain | 363,800 | 631,855 | ||||||
Net change in unrealized appreciation (depreciation) | (543,381 | ) | 1,254,303 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 281,308 | 3,142,283 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (426,264 | ) | (1,172,604 | ) | ||||
Class B* | — | (2,511 | ) | |||||
Institutional Class** | (28,337 | ) | (87,650 | ) | ||||
Class R6*** | (131 | ) | (221 | ) | ||||
|
|
|
| |||||
(454,732) | (1,262,986) | |||||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 300,944 | 2,087,168 | ||||||
Class B* | — | 450 | ||||||
Institutional Class** | 20,433 | 250,098 | ||||||
Class R6*** | — | 9,998 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 348,494 | 968,175 | ||||||
Class B* | — | 2,266 | ||||||
Institutional Class** | 27,867 | 84,709 | ||||||
Class R6*** | 131 | 210 | ||||||
|
|
|
| |||||
697,869 | 3,403,074 | |||||||
|
|
|
|
68
Table of Contents
Six months 6/30/20 | Year ended 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (6,541,262 | ) | $ | (9,204,894 | ) | ||
Class B* | — | (267,038 | ) | |||||
Institutional Class** | (312,264 | ) | (1,338,992 | ) | ||||
Class R6*** | — | (6,909 | ) | |||||
|
|
|
| |||||
(6,853,526 | ) | (10,817,833 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (6,155,657 | ) | (7,414,759 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (6,329,081 | ) | (5,535,462 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 41,873,826 | 47,409,288 | ||||||
|
|
|
| |||||
End of period | $ | 35,544,745 | $ | 41,873,826 | ||||
|
|
|
|
* | All Class B shares were converted into Class A shares on June 14, 2019. |
** | On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares. See Notes to Financial Statements. |
*** | On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares. See Notes to Financial Statements. |
See accompanying notes, which are an integral part of the financial statements.
69
Table of Contents
Statements of changes in net assets
Delaware Tax-Free New York II Fund
Six months ended 6/30/20 | Year ended 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 1,829,394 | $ | 4,221,154 | ||||
Net realized gain | 942,207 | 2,076,639 | ||||||
Net change in unrealized appreciation (depreciation) | (1,336,008 | ) | 4,971,653 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 1,435,593 | 11,269,446 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (1,799,500 | ) | (4,013,465 | ) | ||||
Class B* | — | (10,756 | ) | |||||
Institutional Class** | (25,218 | ) | (205,704 | ) | ||||
Class R6*** | (149 | ) | (224 | ) | ||||
|
|
|
| |||||
(1,824,867 | ) | (4,230,149 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 1,487,768 | 7,026,591 | ||||||
Class B* | — | 350 | ||||||
Institutional Class** | 541,454 | 782,169 | ||||||
Class R6*** | — | 10,002 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 1,411,973 | 3,119,679 | ||||||
Class B* | — | 5,782 | ||||||
Institutional Class** | 24,786 | 200,662 | ||||||
Class R6*** | 149 | 212 | ||||||
|
|
|
| |||||
3,466,130 | 11,145,447 | |||||||
|
|
|
|
70
Table of Contents
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (12,255,650 | ) | $ | (28,243,507 | ) | ||
Class B* | — | (1,133,759 | ) | |||||
Institutional Class** | (269,224 | ) | (10,858,161 | ) | ||||
Class R6*** | — | (6,851 | ) | |||||
|
|
|
| |||||
(12,524,874 | ) | (40,242,278 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (9,058,744 | ) | (29,096,831 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (9,448,018 | ) | (22,057,534 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 138,630,293 | 160,687,827 | ||||||
|
|
|
| |||||
End of period | $ | 129,182,275 | $ | 138,630,293 | ||||
|
|
|
| |||||
|
|
|
|
* | All Class B shares were converted into Class A shares on June 14, 2019. |
** | On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares. See Notes to Financial Statements. |
*** | On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares. See Notes to Financial Statements. |
See accompanying notes, which are an integral part of the financial statements.
71
Table of Contents
Statements of changes in net assets
Delaware Tax-Free Oregon Fund
Six months ended 6/30/20 | Year ended 12/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 548,567 | $ | 1,286,707 | ||||
Net realized gain | 372,773 | 502,483 | ||||||
Net change in unrealized appreciation (depreciation) | (79,898 | ) | 1,147,321 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 841,442 | 2,936,511 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (507,436 | ) | (1,189,623 | ) | ||||
Class B* | — | (5 | ) | |||||
Institutional Class** | (41,420 | ) | (113,411 | ) | ||||
Class R6*** | (132 | ) | (206 | ) | ||||
|
|
|
| |||||
(548,988 | ) | (1,303,245 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 717,498 | 4,708,665 | ||||||
Class B* | — | 160 | ||||||
Institutional Class** | 502,733 | 2,569,510 | ||||||
Class R6*** | — | 9,999 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 429,410 | 994,922 | ||||||
Class B* | — | 4 | ||||||
Institutional Class** | 31,646 | 79,225 | ||||||
Class R6*** | 132 | 195 | ||||||
|
|
|
| |||||
1,681,419 | 8,362,680 | |||||||
|
|
|
|
72
Table of Contents
Six months ended 6/30/20 (Unaudited) | Year ended 12/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (4,269,276 | ) | $ | (11,809,575 | ) | ||
Class B* | — | (5,098 | ) | |||||
Institutional Class** | (197,800 | ) | (4,443,859 | ) | ||||
Class R6*** | — | (6,737 | ) | |||||
|
|
|
| |||||
(4,467,076 | ) | (16,265,269 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (2,785,657 | ) | (7,902,589 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets | (2,493,203 | ) | (6,269,323 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 46,873,755 | 53,143,078 | ||||||
|
|
|
| |||||
End of period | $ | 44,380,552 | $ | 46,873,755 | ||||
|
|
|
|
* | All Class B shares were converted into Class A shares on June 14, 2019. |
** | On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares. See Notes to Financial Statements. |
*** | On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares. See Notes to Financial Statements. |
See accompanying notes, which are an integral part of the financial statements.
73
Table of Contents
Delaware Tax-Exempt Income 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Class A shares of First Investors Tax Exempt Income Fund were reorganized into Class A shares of Delaware Tax-Exempt Income Fund. See Notes to Financial Statements. The Class A shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Tax Exempt Income Fund Class A shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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 and / or distributor. Performance would have been lower had the waivers not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
74
Table of Contents
Six months ended 6/30/201 (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 9.37 | $ | 9.10 | $ | 9.42 | $ | 9.50 | $ | 9.87 | $ | 10.01 | |||||||||||||
0.14 | 0.27 | 0.32 | 0.36 | 0.38 | 0.39 | |||||||||||||||||||
(0.02 | ) | 0.27 | (0.31 | ) | (0.07 | ) | (0.36 | ) | (0.14 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.12 | 0.54 | 0.01 | 0.29 | 0.02 | 0.25 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.14 | ) | (0.27 | ) | (0.33 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.14 | ) | (0.27 | ) | (0.33 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 9.35 | $ | 9.37 | $ | 9.10 | $ | 9.42 | $ | 9.50 | $ | 9.87 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.28% | 6.04% | 0.11% | 3.05% | 0.14% | 2.53% | |||||||||||||||||||
$ | 491,254 | $ | 533,584 | $ | 577,753 | $ | 617,860 | $ | 607,985 | $ | 627,297 | |||||||||||||
0.83% | 0.89% | 0.97% | 0.96% | 0.96% | 0.95% | |||||||||||||||||||
0.93% | 0.95% | 1.02% | 1.01% | 1.00% | 1.00% | |||||||||||||||||||
3.01% | 2.95% | 3.53% | 3.78% | 3.86% | 3.95% | |||||||||||||||||||
2.91% | 2.89% | 3.48% | 3.73% | 3.82% | 3.90% | |||||||||||||||||||
| 19%
|
|
| 39%
|
|
| 88%
|
|
| 34%
|
|
| 18%
|
|
| 11%
|
| |||||||
|
75
Table of Contents
Financial highlights
Delaware Tax-Exempt Income 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Advisor Class shares of First Investors Tax Exempt Income Fund were reorganized into Institutional Class shares of Delaware Tax-Exempt Income Fund. See Notes to Financial Statements. The Institutional Class shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Tax Exempt Income Fund Advisor Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
76
Table of Contents
Six months ended 6/30/201 (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 9.37 | $ | 9.11 | $ | 9.42 | $ | 9.50 | $ | 9.86 | $ | 10.00 | |||||||||||||
0.15 | 0.30 | 0.35 | 0.39 | 0.41 | 0.42 | |||||||||||||||||||
(0.02 | ) | 0.25 | (0.31 | ) | (0.08 | ) | (0.36 | ) | (0.15 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.13 | 0.55 | 0.04 | 0.31 | 0.05 | 0.27 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.15 | ) | (0.29 | ) | (0.35 | ) | (0.39 | ) | (0.41 | ) | (0.41 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.15 | ) | (0.29 | ) | (0.35 | ) | (0.39 | ) | (0.41 | ) | (0.41 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 9.35 | $ | 9.37 | $ | 9.11 | $ | 9.42 | $ | 9.50 | $ | 9.86 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.36% | 6.13% | 0.49% | 3.27% | 0.50% | 2.80% | |||||||||||||||||||
$ | 18,206 | $ | 19,450 | $ | 62,831 | $ | 54,245 | $ | 35,947 | $ | 29,094 | |||||||||||||
0.68% | 0.69% | 0.70% | 0.66% | 0.65% | 0.64% | |||||||||||||||||||
0.68% | 0.73% | 0.75% | 0.71% | 0.69% | 0.69% | |||||||||||||||||||
3.16% | 3.21% | 3.80% | 4.07% | 4.16% | 4.26% | |||||||||||||||||||
3.16% | 3.17% | 3.75% | 4.02% | 4.12% | 4.21% | |||||||||||||||||||
| 19%
|
|
| 39%
|
|
| 88%
|
|
| 34%
|
|
| 18%
|
|
| 11%
|
| |||||||
|
77
Table of Contents
Financial highlights
Delaware Tax-Exempt Income Fund Class R6
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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Institutional Class shares of First Investors Tax Exempt Income Fund were reorganized into Class R6 shares of Delaware Tax-Exempt Income Fund. See Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Tax Exempt Income Fund Institutional Class shares. |
3 | The average shares outstanding method has been applied for per share information. |
4 | 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.
78
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 9.36 | $ | 9.08 | $ | 9.39 | $ | 9.46 | $ | 9.88 | $ | 10.03 | |||||||||||||
0.15 | 0.29 | 0.36 | 0.42 | 0.41 | 0.42 | |||||||||||||||||||
(0.02 | ) | 0.28 | (0.31 | ) | (0.10 | ) | (0.42 | ) | (0.16 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.13 | 0.57 | 0.05 | 0.32 | (0.01 | ) | 0.26 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.15 | ) | (0.29 | ) | (0.36 | ) | (0.39 | ) | (0.41 | ) | (0.41 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.15 | ) | (0.29 | ) | (0.36 | ) | (0.39 | ) | (0.41 | ) | (0.41 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 9.34 | $ | 9.36 | $ | 9.08 | $ | 9.39 | $ | 9.46 | $ | 9.88 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.38% | 6.38% | 0.52% | 3.40% | (0.13% | ) | 2.69% | ||||||||||||||||||
$ | 10 | $ | 10 | $ | 3,777 | $ | 4,120 | $ | 3,762 | $ | 7,124 | |||||||||||||
0.62% | 0.62% | 0.64% | 0.64% | 0.64% | 0.63% | |||||||||||||||||||
0.67% | 0.67% | 0.69% | 0.69% | 0.68% | 0.67% | |||||||||||||||||||
3.22% | 3.21% | 3.87% | 4.38% | 4.15% | 4.25% | |||||||||||||||||||
3.17% | 3.16% | 3.82% | 4.33% | 4.11% | 4.21% | |||||||||||||||||||
| 19%
|
|
| 39%
|
|
| 88%
|
|
| 34%
|
|
| 18%
|
|
| 11%
|
| |||||||
|
79
Table of Contents
Financial highlights
Delaware Tax-Exempt Opportunities 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Class A shares of First Investors Tax Exempt Opportunities Fund were reorganized into Class A shares of Delaware Tax-Exempt Opportunities Fund. See Notes to Financial Statements. The Class A shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Tax Exempt Opportunities Fund Class A shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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 reflect 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.
80
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 16.70 | $ | 15.99 | $ | 16.55 | $ | 16.52 | $ | 17.04 | $ | 17.07 | |||||||||||||
0.26 | 0.45 | 0.48 | 0.55 | 0.56 | 0.55 | |||||||||||||||||||
(0.11 | ) | 0.72 | (0.56 | ) | 0.09 | (0.53 | ) | (0.03 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.15 | 1.17 | (0.08 | ) | 0.64 | 0.03 | 0.52 | ||||||||||||||||||
|
| �� |
|
|
|
|
|
|
|
|
|
| ||||||||||||
(0.25 | ) | (0.46 | ) | (0.48 | ) | (0.61 | ) | (0.55 | ) | (0.55 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.25 | ) | (0.46 | ) | (0.48 | ) | (0.61 | ) | (0.55 | ) | (0.55 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 16.60 | $ | 16.70 | $ | 15.99 | $ | 16.55 | $ | 16.52 | $ | 17.04 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.93% | 7.36% | (0.44% | ) | 3.91% | 0.13% | 3.08% | ||||||||||||||||||
$ | 348,905 | $ | 383,571 | $ | 423,773 | $ | 280,412 | $ | 268,466 | $ | 265,258 | |||||||||||||
0.95% | 0.97% | 1.01% | 1.00% | 1.00% | 0.99% | |||||||||||||||||||
1.02% | 0.98% | 1.01% | 1.05% | 1.05% | 1.04% | |||||||||||||||||||
3.14% | 2.74% | 3.02% | 3.32% | 3.24% | 3.23% | |||||||||||||||||||
3.07% | 2.73% | 3.02% | 3.27% | 3.19% | 3.18% | |||||||||||||||||||
| 44%
|
|
| 60%
|
|
| 135%
|
|
| 69%
|
|
| 50%
|
|
| 59%
|
| |||||||
|
81
Table of Contents
Financial highlights
Delaware Tax-Exempt Opportunities 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Advisor Class shares of First Investors Tax Exempt Opportunities Fund were reorganized into Institutional Class shares of Delaware Tax-Exempt Opportunities Fund. See Notes to Financial Statements. The Institutional Class shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Tax Exempt Opportunities Fund Advisor Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
82
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 16.73 | $ | 16.02 | $ | 16.58 | $ | 16.52 | $ | 17.04 | $ | 17.05 | |||||||||||||
0.28 | 0.50 | 0.52 | 0.57 | 0.58 | 0.58 | |||||||||||||||||||
(0.12 | ) | 0.70 | (0.56 | ) | 0.10 | (0.53 | ) | (0.03 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.16 | 1.20 | (0.04 | ) | 0.67 | 0.05 | 0.55 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.27 | ) | (0.49 | ) | (0.52 | ) | (0.61 | ) | (0.57 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.27 | ) | (0.49 | ) | (0.52 | ) | (0.61 | ) | (0.57 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 16.62 | $ | 16.73 | $ | 16.02 | $ | 16.58 | $ | 16.52 | $ | 17.04 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.02 | % | 7.58 | % | (0.18 | %) | 4.09 | % | 0.23 | % | 3.31 | % | |||||||||||||
$ | 5,359 | $ | 4,835 | $ | 21,317 | $ | 15,017 | $ | 5,909 | $ | 4,165 | |||||||||||||
0.66 | % | 0.69 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.81 | % | |||||||||||||
0.77 | % | 0.70 | % | 0.80 | % | 0.89 | % | 0.89 | % | 0.86 | % | |||||||||||||
3.43 | % | 3.05 | % | 3.22 | % | 3.43 | % | 3.40 | % | 3.41 | % | |||||||||||||
3.32 | % | 3.04 | % | 3.22 | % | 3.38 | % | 3.35 | % | 3.36 | % | |||||||||||||
| 44
| %
|
| 60
| %
|
| 135
| %
|
| 69
| %
|
| 50
| %
|
| 59
| %
| |||||||
|
83
Table of Contents
Financial highlights
Delaware Tax-Exempt Opportunities Fund Class R6
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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Institutional Class shares of First Investors Tax Exempt Opportunities Fund were reorganized into Class R6 shares of Delaware Tax-Exempt Opportunities Fund. See Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Tax Exempt Opportunities Fund Institutional Class shares. |
3 | The average shares outstanding method has been applied for per share information. |
4 | 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.
84
Table of Contents
Six months ended 6/30/201 (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 16.67 | $ | 15.98 | $ | 16.65 | $ | 16.60 | $ | 17.09 | $ | 17.11 | |||||||||||||
0.28 | 0.49 | 0.54 | 0.48 | 0.61 | 0.59 | |||||||||||||||||||
(0.11 | ) | 0.70 | (0.66 | ) | 0.20 | (0.53 | ) | (0.05 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.17 | 1.19 | (0.12 | ) | 0.68 | 0.08 | 0.54 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.27 | ) | (0.50 | ) | (0.55 | ) | (0.63 | ) | (0.57 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.27 | ) | (0.50 | ) | (0.55 | ) | (0.63 | ) | (0.57 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 16.57 | $ | 16.67 | $ | 15.98 | $ | 16.65 | $ | 16.60 | $ | 17.09 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.08% | 7.51% | (0.71% | ) | 4.18% | 0.41% | 3.24% | ||||||||||||||||||
$ | 10 | $ | 10 | $ | 7,555 | $ | 8,472 | $ | 6 | $ | 6 | |||||||||||||
0.65% | 0.72% | 0.66% | 0.70% | 0.69% | 0.66% | |||||||||||||||||||
0.76% | 0.72% | 0.66% | 0.75% | 0.74% | 0.71% | |||||||||||||||||||
3.44% | 2.94% | 3.35% | 2.91% | 3.55% | 3.56% | |||||||||||||||||||
3.33% | 2.94% | 3.35% | 2.86% | 3.50% | 3.51% | |||||||||||||||||||
| 44%
|
|
| 60%
|
|
| 135%
|
|
| 69%
|
|
| 50%
|
|
| 59%
|
| |||||||
|
85
Table of Contents
Financial highlights
Delaware Tax-Free California II 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Class A shares of First Investors California Tax Exempt Fund were reorganized into Class A shares of Delaware Tax-Exempt California II Fund. See Notes to Financial Statements. The Class A shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors California Tax Exempt Fund Class A shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
86
Table of Contents
Six months ended 6/30/201 (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 12.85 | $ | 12.27 | $ | 12.63 | $ | 12.58 | $ | 13.02 | $ | 13.02 | |||||||||||||
0.18 | 0.33 | 0.39 | 0.41 | 0.43 | 0.43 | |||||||||||||||||||
(0.20 | ) | 0.58 | (0.36 | ) | 0.06 | (0.43 | ) | 0.01 | �� | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.02 | ) | 0.91 | 0.03 | 0.47 | — | 0.44 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.17 | ) | (0.33 | ) | (0.39 | ) | (0.42 | ) | (0.44 | ) | (0.44 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.17 | ) | (0.33 | ) | (0.39 | ) | (0.42 | ) | (0.44 | ) | (0.44 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 12.66 | $ | 12.85 | $ | 12.27 | $ | 12.63 | $ | 12.58 | $ | 13.02 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.12% | ) | 7.52% | 0.24% | 3.78% | (0.06% | ) | 3.46% | |||||||||||||||||
$ | 35,491 | $ | 42,205 | $ | 48,853 | $ | 53,998 | $ | 48,658 | $ | 48,610 | |||||||||||||
0.92% | 0.98% | 0.97% | 0.96% | 0.95% | 0.97% | |||||||||||||||||||
1.27% | 1.09% | 1.00% | 1.06% | 1.05% | 1.05% | |||||||||||||||||||
2.79% | 2.63% | 3.13% | 3.25% | 3.29% | 3.36% | |||||||||||||||||||
2.44% | 2.52% | 3.10% | 3.15% | 3.19% | 3.28% | |||||||||||||||||||
| 20%
|
|
| 40%
|
|
| 48%
|
|
| 19%
|
|
| 42%
|
|
| 76%
|
| |||||||
|
87
Table of Contents
Financial highlights
Delaware Tax-Free California II 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Advisor Class shares of First Investors California Tax Exempt Fund were reorganized into Institutional Class shares of Delaware Tax-Exempt California II Fund. See Notes to Financial Statements. The Institutional Class shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors California Tax Exempt Fund Advisor Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
88
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 12.82 | $ | 12.25 | $ | 12.60 | $ | 12.55 | $ | 12.99 | $ | 13.00 | |||||||||||||
0.19 | 0.37 | 0.42 | 0.45 | 0.47 | 0.47 | |||||||||||||||||||
(0.19 | ) | 0.57 | (0.34 | ) | 0.06 | (0.42 | ) | 0.01 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
— | 0.94 | 0.08 | 0.51 | 0.05 | 0.48 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.19 | ) | (0.37 | ) | (0.43 | ) | (0.46 | ) | (0.49 | ) | (0.49 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.19 | ) | (0.37 | ) | (0.43 | ) | (0.46 | ) | (0.49 | ) | (0.49 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 12.63 | $ | 12.82 | $ | 12.25 | $ | 12.60 | $ | 12.55 | $ | 12.99 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.01% | 7.73% | 0.65% | 4.11% | 0.28% | 3.74% | |||||||||||||||||||
$ | 1,638 | $ | 1,377 | $ | 7,447 | $ | 7,057 | $ | 5,851 | $ | 2,400 | |||||||||||||
0.64% | 0.70% | 0.64% | 0.62% | 0.62% | 0.66% | |||||||||||||||||||
1.02% | 0.74% | 0.67% | 0.72% | 0.72% | 0.75% | |||||||||||||||||||
3.07% | 2.96% | 3.45% | 3.58% | 3.61% | 3.66% | |||||||||||||||||||
2.69% | 2.92% | 3.42% | 3.48% | 3.51% | 3.57% | |||||||||||||||||||
| 20%
|
|
| 40%
|
|
| 48%
|
|
| 19%
|
|
| 42%
|
|
| 76%
|
| |||||||
|
89
Table of Contents
Financial highlights
Delaware Tax-Free California II Fund Class R6
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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Institutional Class shares of First Investors California Tax Exempt Fund were reorganized into Class R6 shares of Delaware Tax-Exempt California II Fund. See Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors California Tax Exempt Fund Institutional Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
90
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 12.82 | $ | 12.25 | $ | 12.61 | $ | 12.55 | $ | 13.00 | $ | 13.04 | |||||||||||||
0.19 | 0.37 | 0.42 | 0.45 | 0.47 | 0.46 | |||||||||||||||||||
(0.19 | ) | 0.58 | (0.36 | ) | 0.07 | (0.43 | ) | (0.01 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
— | 0.94 | 0.06 | 0.52 | 0.04 | 0.45 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.19 | ) | (0.37 | ) | (0.42 | ) | (0.46 | ) | (0.49 | ) | (0.49 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.19 | ) | (0.37 | ) | (0.42 | ) | (0.46 | ) | (0.49 | ) | (0.49 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 12.63 | $ | 12.82 | $ | 12.25 | $ | 12.61 | $ | 12.55 | $ | 13.00 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.01% | 7.73% | 0.55% | 4.19% | 0.20% | 3.50% | |||||||||||||||||||
$ | 10 | $ | 10 | $ | 7 | $ | 6 | $ | 6 | $ | 6 | |||||||||||||
0.65% | 0.70% | 0.65% | 0.65% | 0.62% | 0.65% | |||||||||||||||||||
1.00% | 0.86% | 0.68% | 0.75% | 0.72% | 0.73% | |||||||||||||||||||
3.06% | 2.88% | 3.44% | 3.56% | 3.62% | 3.68% | |||||||||||||||||||
2.71% | 2.72% | 3.41% | 3.46% | 3.52% | 3.60% | |||||||||||||||||||
| 20%
|
|
| 40%
|
|
| 48%
|
|
| 19%
|
|
| 42%
|
|
| 76%
|
| |||||||
|
91
Table of Contents
Financial highlights
Delaware Tax-Free New Jersey 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Class A shares of First Investors New Jersey Tax Exempt Fund were reorganized into Class A shares of Delaware Tax-Free New Jersey Fund. See Notes to Financial Statements. The Class A shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors New Jersey Tax Exempt Fund Class A shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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. |
5 | The Fund’s portfolio turnover rate increased substantially during the year ended Dec. 31, 2019 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
92
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 12.88 | $ | 12.40 | $ | 12.78 | $ | 12.69 | $ | 13.04 | $ | 13.22 | |||||||||||||
0.15 | 0.34 | 0.41 | 0.43 | 0.44 | 0.46 | |||||||||||||||||||
(0.03 | ) | 0.48 | (0.38 | ) | 0.09 | (0.35 | ) | (0.18 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.12 | 0.82 | 0.03 | 0.52 | 0.09 | 0.28 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.15 | ) | (0.34 | ) | (0.41 | ) | (0.43 | ) | (0.44 | ) | (0.46 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.15 | ) | (0.34 | ) | (0.41 | ) | (0.43 | ) | (0.44 | ) | (0.46 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 12.85 | $ | 12.88 | $ | 12.40 | $ | 12.78 | $ | 12.69 | $ | 13.04 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.96% | 6.68% | 0.29% | 4.13% | 0.61% | 2.16% | |||||||||||||||||||
$ | 33,421 | $ | 39,479 | $ | 43,895 | $ | 48,917 | $ | 47,698 | $ | 46,060 | |||||||||||||
0.90% | 0.96% | 0.95% | 0.94% | 0.95% | 0.96% | |||||||||||||||||||
1.27% | 1.07% | 0.98% | 1.04% | 1.05% | 1.05% | |||||||||||||||||||
2.43% | 2.67% | 3.31% | 3.35% | 3.31% | 3.52% | |||||||||||||||||||
2.06% | 2.56% | 3.28% | 3.25% | 3.21% | 3.43% | |||||||||||||||||||
| 18%
|
|
| 47%
| 5
|
| 20%
|
|
| 44%
|
|
| 25%
|
|
| 48%
|
| |||||||
|
93
Table of Contents
Financial highlights
Delaware Tax-Free New Jersey 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Advisor Class shares of First Investors New Jersey Tax Exempt Fund were reorganized into Institutional Class shares of Delaware Tax-Free New Jersey Fund. See Notes to Financial Statements. The Institutional Class shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors New Jersey Tax Exempt Fund Advisor Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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. |
5 | The Fund’s portfolio turnover rate increased substantially during the year ended Dec. 31, 2019 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
94
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Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 12.87 | $ | 12.38 | $ | 12.76 | $ | 12.68 | $ | 13.03 | $ | 13.20 | |||||||||||||
0.17 | 0.37 | 0.44 | 0.46 | 0.47 | 0.50 | |||||||||||||||||||
(0.04 | ) | 0.49 | (0.37 | ) | 0.08 | (0.34 | ) | (0.17 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.13 | 0.86 | 0.07 | 0.54 | 0.13 | 0.33 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.17 | ) | (0.37 | ) | (0.45 | ) | (0.46 | ) | (0.48 | ) | (0.50 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.17 | ) | (0.37 | ) | (0.45 | ) | (0.46 | ) | (0.48 | ) | (0.50 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 12.83 | $ | 12.87 | $ | 12.38 | $ | 12.76 | $ | 12.68 | $ | 13.03 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.00% | 7.00% | 0.56% | 4.36% | 0.93% | 2.50% | |||||||||||||||||||
$ | 2,114 | $ | 2,385 | $ | 3,251 | $ | 2,114 | $ | 1,289 | $ | 866 | |||||||||||||
0.68% | 0.73% | 0.68% | 0.66% | 0.64% | 0.65% | |||||||||||||||||||
1.02% | 0.82% | 0.71% | 0.76% | 0.74% | 0.74% | |||||||||||||||||||
2.65% | 2.89% | 3.57% | 3.63% | 3.62% | 3.81% | |||||||||||||||||||
2.31% | 2.80% | 3.54% | 3.53% | 3.52% | 3.72% | |||||||||||||||||||
| 18%
|
|
| 47%
| 5
|
| 20%
|
|
| 44%
|
|
| 25%
|
|
| 48%
|
| |||||||
|
95
Table of Contents
Financial highlights
Delaware Tax-Free New Jersey Fund Class R6
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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Institutional Class shares of First Investors New Jersey Tax Exempt Fund were reorganized into Class R6 shares of Delaware Tax-Free New Jersey Fund. See Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors New Jersey Tax Exempt Fund Institutional Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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. |
5 | The Fund’s portfolio turnover rate increased substantially during the year ended Dec. 31, 2019 due to a change in the Fund’s portfolio managers and associated repositioning. |
See accompanying notes, which are an integral part of the financial statements.
96
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 12.85 | $ | 12.36 | $ | 12.74 | $ | 12.66 | $ | 13.01 | $ | 13.23 | |||||||||||||
0.17 | 0.36 | 0.44 | 0.46 | 0.47 | 0.48 | |||||||||||||||||||
(0.04 | ) | 0.51 | (0.38 | ) | 0.08 | (0.34 | ) | (0.20 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.13 | 0.87 | 0.06 | 0.54 | 0.13 | 0.28 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.17 | ) | (0.38 | ) | (0.44 | ) | (0.46 | ) | (0.48 | ) | (0.50 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.17 | ) | (0.38 | ) | (0.44 | ) | (0.46 | ) | (0.48 | ) | (0.50 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 12.81 | $ | 12.85 | $ | 12.36 | $ | 12.74 | $ | 12.66 | $ | 13.01 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.00% | 7.07% | 0.55% | 4.36% | 0.97% | 2.16% | |||||||||||||||||||
$ | 10 | $ | 10 | $ | 7 | $ | 6 | $ | 6 | $ | 6 | |||||||||||||
0.66% | 0.69% | 0.67% | 0.64% | 0.64% | 0.65% | |||||||||||||||||||
1.01% | 0.85% | 0.70% | 0.75% | 0.74% | 0.74% | |||||||||||||||||||
2.68% | 2.85% | 3.58% | 3.65% | 3.62% | 3.83% | |||||||||||||||||||
2.33% | 2.69% | 3.55% | 3.54% | 3.52% | 3.74% | |||||||||||||||||||
| 18%
|
|
| 47%
| 5
|
| 20%
|
|
| 44%
|
|
| 25%
|
|
| 48%
|
| |||||||
|
97
Table of Contents
Financial highlights
Delaware Tax-Free New York II 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Class A shares of First Investors New York Tax Exempt Fund were reorganized into Class A shares of Delaware Tax–Free New York II Fund. See Notes to Financial Statements. The Class A shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors New York Tax Exempt Fund Class A shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
98
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 14.34 | $ | 13.72 | $ | 14.18 | $ | 14.22 | $ | 14.71 | $ | 14.84 | |||||||||||||
0.20 | 0.39 | 0.46 | 0.49 | 0.53 | 0.53 | |||||||||||||||||||
(0.03 | ) | 0.62 | (0.46 | ) | (0.03 | ) | (0.49 | ) | (0.13 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.17 | 1.01 | — | 0.46 | 0.04 | 0.40 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.20 | ) | (0.39 | ) | (0.46 | ) | (0.50 | ) | (0.53 | ) | (0.53 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.20 | ) | (0.39 | ) | (0.46 | ) | (0.50 | ) | (0.53 | ) | (0.53 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 14.31 | $ | 14.34 | $ | 13.72 | $ | 14.18 | $ | 14.22 | $ | 14.71 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.17% | 7.42% | 0.00% | 3.27% | 0.22% | 2.76% | |||||||||||||||||||
$ | 127,160 | $ | 136,908 | $ | 148,451 | $ | 160,514 | $ | 152,145 | $ | 144,162 | |||||||||||||
0.86% | 0.90% | 0.91% | 0.91% | 0.92% | 0.93% | |||||||||||||||||||
1.04% | 0.95% | 0.94% | 1.01% | 1.02% | 1.01% | |||||||||||||||||||
2.78% | 2.75% | 3.29% | 3.40% | 3.59% | 3.60% | |||||||||||||||||||
2.60% | 2.70% | 3.26% | 3.30% | 3.49% | 3.52% | |||||||||||||||||||
| 18%
|
|
| 27%
|
|
| 47%
|
|
| 33%
|
|
| 19%
|
|
| 36%
|
| |||||||
|
99
Table of Contents
Financial highlights
Delaware Tax-Free New York II 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Advisor Class shares of First Investors New York Tax Exempt Fund were reorganized into Institutional Class shares of Delaware Tax–Free New York II Fund. See Notes to Financial Statements. The Institutional Class shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors New York Tax Exempt Fund Advisor Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
100
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 14.35 | $ | 13.73 | $ | 14.19 | $ | 14.22 | $ | 14.70 | $ | 14.81 | |||||||||||||
0.21 | 0.44 | 0.50 | 0.53 | 0.57 | 0.57 | |||||||||||||||||||
(0.04 | ) | 0.60 | (0.46 | ) | (0.03 | ) | (0.49 | ) | (0.12 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.17 | 1.04 | 0.04 | 0.50 | 0.08 | 0.45 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.21 | ) | (0.42 | ) | (0.50 | ) | (0.53 | ) | (0.56 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.21 | ) | (0.42 | ) | (0.50 | ) | (0.53 | ) | (0.56 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 14.31 | $ | 14.35 | $ | 13.73 | $ | 14.19 | $ | 14.22 | $ | 14.70 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.23% | 7.68% | 0.31% | 3.58% | 0.51% | 3.13% | |||||||||||||||||||
$ | 2,012 | $ | 1,712 | $ | 11,140 | $ | 9,559 | $ | 7,282 | $ | 6,304 | |||||||||||||
0.60% | 0.64% | 0.60% | 0.61% | 0.61% | 0.62% | |||||||||||||||||||
0.79% | 0.66% | 0.63% | 0.71% | 0.71% | 0.71% | |||||||||||||||||||
3.04% | 3.09% | 3.60% | 3.70% | 3.89% | 3.90% | |||||||||||||||||||
2.85% | 3.07% | 3.57% | 3.60% | 3.79% | 3.81% | |||||||||||||||||||
| 18%
|
|
| 27%
|
|
| 47%
|
|
| 33%
|
|
| 19%
|
|
| 36%
|
| |||||||
|
101
Table of Contents
Financial highlights
Delaware Tax-Free New York II Fund Class R6
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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Institutional Class shares of First Investors New York Tax Exempt Fund were reorganized into Class R6 shares of Delaware Tax–Free New York II Fund. See Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors New York Tax Exempt Fund Institutional Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
102
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 14.36 | $ | 13.74 | $ | 14.20 | $ | 14.23 | $ | 14.72 | $ | 14.86 | |||||||||||||
0.21 | 0.42 | 0.50 | 0.53 | 0.57 | 0.56 | |||||||||||||||||||
(0.03 | ) | 0.62 | (0.46 | ) | (0.02 | ) | (0.50 | ) | (0.14 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.18 | 1.04 | 0.04 | 0.51 | 0.07 | 0.42 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.21 | ) | (0.42 | ) | (0.50 | ) | (0.54 | ) | (0.56 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.21 | ) | (0.42 | ) | (0.50 | ) | (0.54 | ) | (0.56 | ) | (0.56 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 14.33 | $ | 14.36 | $ | 13.74 | $ | 14.20 | $ | 14.23 | $ | 14.72 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.29% | 7.68% | 0.31% | 3.59% | 0.44% | 2.92% | |||||||||||||||||||
$ | 10 | $ | 10 | $ | 6 | $ | 6 | $ | 6 | $ | 6 | |||||||||||||
0.62% | 0.64% | 0.62% | 0.64% | 0.60% | 0.61% | |||||||||||||||||||
0.78% | 0.70% | 0.65% | 0.74% | 0.70% | 0.69% | |||||||||||||||||||
3.02% | 2.96% | 3.58% | 3.68% | 3.90% | 3.92% | |||||||||||||||||||
2.86% | 2.90% | 3.55% | 3.58% | 3.80% | 3.84% | |||||||||||||||||||
| 18%
|
|
| 27%
|
|
| 47%
|
|
| 33%
|
|
| 19%
|
|
| 36%
|
| |||||||
|
103
Table of Contents
Financial highlights
Delaware Tax-Free Oregon 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Class A shares of First Investors Oregon Tax Exempt Fund were reorganized into Class A shares of Delaware Tax-Free Oregon Fund. See Notes to Financial Statements. The Class A shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Oregon Tax Exempt Fund Class A shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
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Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 13.42 | $ | 13.01 | $ | 13.39 | $ | 13.33 | $ | 13.72 | $ | 13.83 | |||||||||||||
0.16 | 0.33 | 0.37 | 0.40 | 0.42 | 0.43 | |||||||||||||||||||
0.10 | 0.42 | (0.38 | ) | 0.09 | (0.41 | ) | (0.11 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.26 | 0.75 | (0.01 | ) | 0.49 | 0.01 | 0.32 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.16 | ) | (0.34 | ) | (0.37 | ) | (0.43 | ) | (0.40 | ) | (0.43 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.16 | ) | (0.34 | ) | (0.37 | ) | (0.43 | ) | (0.40 | ) | (0.43 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 13.52 | $ | 13.42 | $ | 13.01 | $ | 13.39 | $ | 13.33 | $ | 13.72 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1.96% | 5.78% | (0.04% | ) | 3.70% | 0.03% | 2.39% | ||||||||||||||||||
$ | 41,052 | $ | 43,911 | $ | 48,527 | $ | 52,210 | $ | 51,480 | $ | 49,015 | |||||||||||||
0.91% | 0.95% | 0.96% | 0.95% | 0.95% | 0.98% | |||||||||||||||||||
1.21% | 1.05% | 0.99% | 1.05% | 1.05% | 1.06% | |||||||||||||||||||
2.42% | 2.49% | 2.84% | 3.00% | 3.08% | 3.13% | |||||||||||||||||||
2.12% | 2.39% | 2.81% | 2.90% | 2.98% | 3.05% | |||||||||||||||||||
| 22%
|
|
| 50%
|
|
| 49%
|
|
| 30%
|
|
| 34%
|
|
| 27%
|
| |||||||
|
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Financial highlights
Delaware Tax-Free Oregon 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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Advisor Class shares of First Investors Oregon Tax Exempt Fund were reorganized into Institutional Class shares of Delaware Tax-Free Oregon Fund. See Notes to Financial Statements. The Institutional Class shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Oregon Tax Exempt Fund Advisor Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
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Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 13.40 | $ | 12.99 | $ | 13.36 | $ | 13.30 | $ | 13.69 | $ | 13.80 | |||||||||||||
0.18 | 0.37 | 0.41 | 0.44 | 0.47 | 0.47 | |||||||||||||||||||
0.10 | 0.41 | (0.37 | ) | 0.07 | (0.40 | ) | (0.11 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.28 | 0.78 | 0.04 | 0.51 | 0.07 | 0.36 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.18 | ) | (0.37 | ) | (0.41 | ) | (0.45 | ) | (0.46 | ) | (0.47 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.18 | ) | (0.37 | ) | (0.41 | ) | (0.45 | ) | (0.46 | ) | (0.47 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 13.50 | $ | 13.40 | $ | 12.99 | $ | 13.36 | $ | 13.30 | $ | 13.69 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
2.08% | 6.03% | 0.33% | 3.91% | 0.42% | 2.69% | |||||||||||||||||||
$ | 3,319 | $ | 2,953 | $ | 4,605 | $ | 4,100 | $ | 3,048 | $ | 2,315 | |||||||||||||
0.66% | 0.70% | 0.66% | 0.64% | 0.64% | 0.67% | |||||||||||||||||||
0.96% | 0.78% | 0.69% | 0.74% | 0.74% | 0.75% | |||||||||||||||||||
2.67% | 2.76% | 3.13% | 3.30% | 3.39% | 3.44% | |||||||||||||||||||
2.37% | 2.68% | 3.10% | 3.20% | 3.29% | 3.36% | |||||||||||||||||||
| 22%
|
|
| 50%
|
|
| 49%
|
|
| 30%
|
|
| 34%
|
|
| 27%
|
| |||||||
|
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Financial highlights
Delaware Tax-Free Oregon Fund Class R6
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 income3 |
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 return4 |
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 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | On Oct. 4, 2019, Institutional Class shares of First Investors Oregon Tax Exempt Fund were reorganized into Class R6 shares of Delaware Tax-Free Oregon Fund. See Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to Oct. 4, 2019, reflect the performance of First Investors Oregon Tax Exempt Fund Institutional Class shares. |
3 | The average shares outstanding have been applied for per share information. |
4 | 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.
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Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
12/31/19 | 2 | 12/31/18 | 12/31/17 | 12/31/16 | 12/31/15 | |||||||||||||||||||
| ||||||||||||||||||||||||
$ | 13.39 | $ | 12.98 | $ | 13.36 | $ | 13.30 | $ | 13.71 | $ | 13.85 | |||||||||||||
0.18 | 0.36 | 0.40 | 0.44 | 0.47 | 0.46 | |||||||||||||||||||
0.10 | 0.41 | (0.38 | ) | 0.08 | (0.41 | ) | (0.12 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
0.28 | 0.78 | 0.02 | 0.52 | 0.06 | 0.34 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.18 | ) | (0.37 | ) | (0.40 | ) | (0.46 | ) | (0.47 | ) | (0.48 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(0.18 | ) | (0.37 | ) | (0.40 | ) | (0.46 | ) | (0.47 | ) | (0.48 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 13.49 | $ | 13.39 | $ | 12.98 | $ | 13.36 | $ | 13.30 | $ | 13.71 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
2.07% | 6.05% | 0.21% | 3.95% | 0.36% | 2.48% | |||||||||||||||||||
$ | 10 | $ | 10 | $ | 6 | $ | 6 | $ | 6 | $ | 6 | |||||||||||||
0.67% | 0.69% | 0.69% | 0.68% | 0.63% | 0.66% | |||||||||||||||||||
0.95% | 0.83% | 0.72% | 0.78% | 0.73% | 0.74% | |||||||||||||||||||
2.66% | 2.73% | 3.10% | 3.27% | 3.39% | 3.45% | |||||||||||||||||||
2.38% | 2.59% | 3.07% | 3.17% | 3.29% | 3.37% | |||||||||||||||||||
| 22%
|
|
| 50%
|
|
| 49%
|
|
| 30%
|
|
| 34%
|
|
| 27%
|
| |||||||
|
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Table of Contents
Delaware Funds® by Macquarie tax-exempt funds | June 30, 2020 (Unaudited) |
Delaware Group® Limited-Term Government Funds (Trust) is organized as a Delaware statutory trust and offers seven series. These financial statements and the related notes pertain to Delaware Tax-Exempt Income Fund, Delaware Tax-Exempt Opportunities Fund, Delaware Tax-Free California II Fund, Delaware Tax-Free New Jersey Fund, Delaware Tax-Free New York II Fund, and Delaware Tax-Free Oregon Fund (each a Fund, or collectively, the Funds). Delaware Limited-Term Diversified Income Fund is included in a separate report. Each Fund is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Institutional Class and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Delaware Tax-Exempt Opportunities Fund, Delaware Tax-Free California II Fund, Delaware Tax-Free New Jersey Fund, Delaware Tax-Free New York II Fund and Delaware Tax-Free Oregon Fund; and 2.75% for Delaware Tax-Exempt Income Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) instead of a front-end sales charge of 1.00%, which will be incurred 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. Institutional Class and Class R6 shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Class R6 shares do not pay any service fees, sub-accounting fees, and/or sub-transfer agency fees to any brokers, dealers or other financial intermediaries.
Before each Fund commenced operations, on Oct. 4, 2019, all of the assets and liabilities of the corresponding fund identified as its respective Predecessor Fund (the “Predecessor Fund”) were transferred to the Fund in a tax-free reorganization as set forth in an agreement and plan of reorganization (each a Foresters Reorganization) between the Trust, on behalf of the Funds, and Foresters Investment Management Company, Inc., on behalf of the Predecessor Funds. As a result of each Foresters Reorganization, the applicable Fund assumed the performance and accounting history of its corresponding Predecessor Fund. Financial information included for the dates prior to the Foresters Reorganization is that of the Predecessor Funds.
Fund | Predecessor Fund | |
Delaware Tax-Exempt Income Fund | First Investors Tax Exempt Income Fund | |
Delaware Tax-Exempt Opportunities Fund | First Investors Tax Exempt Opportunities Fund | |
Delaware Tax-Free California II Fund | First Investors California Tax Exempt Fund | |
Delaware Tax-Free New Jersey Fund | First Investors New Jersey Tax Exempt Fund | |
Delaware Tax-Free New York II Fund | First Investors New York Tax Exempt Fund | |
Delaware Tax-Free Oregon Fund | First Investors Oregon Tax Exempt Fund |
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
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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. Futures contracts are valued at the daily quoted settlement prices. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Trust’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Board.
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 six months ended June 30, 2020 and for all open tax years (years ended Dec. 31, 2017–Dec. 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 six months ended June 30, 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. Class R6 shares will not be allocated any expenses related to service fees, sub-accounting fees, and/or sub-transfer agency fees paid to brokers, dealers, or other financial intermediaries.
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 are accreted and amortized using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
1. Significant Accounting Policies (continued)
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 under “Less expenses paid indirectly.” For the six months ended June 30, 2020, each Fund earned the following amounts under this arrangement:
Delaware | Delaware | Delaware | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||
$3,562 | $909 | $787 | $634 | $1,481 | $674 |
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 six months ended June 30, 2020, each Fund earned the following amounts under this arrangement:
Delaware | Delaware | Delaware | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||
$130 | $115 | $13 | $10 | $35 | $12 |
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- Exempt Income Fund | Delaware Tax- Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||
On the first $500 million | 0.50% | 0.55% | 0.55% | 0.55% | 0.55% | 0.55% | ||||||||||||
On the next $500 million | 0.475% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | ||||||||||||
On the next $1.5 billion | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | ||||||||||||
In excess of $2.5 billion | 0.425% | 0.425% | 0.425% | 0.425% | 0.425% | 0.425% |
DMC has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or
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costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to not exceed the following percentages of each Fund’s average daily net assets from Jan. 1, 2020 through June 30, 2020.* These waivers and reimbursements may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
Delaware Tax- Exempt Income Fund | Delaware Tax- Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||
Operating expense limitation as a percentage of average daily net assets Jan. 1, 2020 through June 30, 2020 Class A | 0.92% | 0.95% | 0.92% | 0.90% | 0.86% | 0.91% | ||||||||||||||||||
Operating expense limitation as a percentage of average daily net assets Jan. 1, 2020 through June 30, 2020 Institutional Class | 0.70% | 0.66% | 0.64% | 0.68% | 0.60% | 0.66% | ||||||||||||||||||
Operating expense limitation as a percentage of average daily net assets Jan. 1, 2020 through June 30, 2020 Class R6 | 0.62% | 0.65% | 0.65% | 0.66% | 0.62% | 0.67% |
DMC may seek investment advice and recommendations from its affiliates: Macquarie Investment Management Europe Limited, Macquarie Investment Management Austria Kapitalanlage AG, and Macquarie Investment Management Global Limited (together, the “Affiliated Sub-Advisors”). The Manager may also permit these Affiliated Sub-Advisors to execute Fund security trades on behalf of the Manager and exercise investment discretion for securities in certain markets where DMC believes it will be beneficial to utilize an Affiliated Sub-Advisor’s specialized market knowledge. Although the Affiliated Sub-Advisors serve as sub-advisors, DMC has ultimate responsibility for all investment advisory services. For these services, DMC, not the Fund, pays each Affiliated Sub-Advisor a portion of its investment management fee.
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to the Funds. 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 net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.”
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
For the six months ended June 30, 2020, each Fund was charged for these services as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||
$10,944 | $8,212 | $2,669 | $2,636 | $4,253 | $2,764 |
DIFSC is also the transfer agent and dividend disbursing agent of the Funds. 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; 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 disbursing and transfer agent fees and expenses.”
For the six months ended June 30, 2020, each Fund was charged for these services as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||
$24,436 | $16,974 | $1,855 | $1,764 | $6,179 | $2,115 |
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 each Fund. Sub-transfer agency fees are paid by each Fund 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. DDLP has contracted to limit the Delaware Tax-Exempt Income Fund Class A shares’ 12b-1 fees to no more than 0.15% of average daily net assets from Jan. 1, 2020 through June 30, 2020.* This waiver may be terminated only by agreement of DDLP and the Fund. The fees are calculated daily and paid monthly. Each Fund, was authorized to pay Foresters Financial Services, Inc. a fee up to 0.25%, of the average daily net assets of the Class A shares, on an annual basis, payable monthly. Institutional Class and Class R6 shares do not pay 12b-1 fees.
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.”
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For the six months ended June 30, 2020, each Fund was charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||
$7,911 | $5,412 | $713 | $683 | $2,095 | $796 |
For the six months ended June 30, 2020, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||
$5,347 | $15,874 | $2,161 | $839 | $5,081 | $1,586 |
For the six months ended June 30, 2020, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A 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:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||
Class A | $1,013 | $2,026 | $— | $224 | $1,044 | $— |
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 Trusts. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the six months ended June 30, 2020, were executed by each Fund 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.
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Pursuant to these procedures, for the six months ended June 30, 2020, the Funds engaged in the following Rule 17a-7 securities purchases and securities sales, which resulted in net realized gains (losses) as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||
Purchases | $ | 20,359,884 | $ | 49,631,041 | $ | 2,471,284 | $ | 882,353 | $ | 3,643,546 | $ | 1,422,981 | ||||||||||||
Sales | 22,485,665 | 42,982,984 | 2,727,198 | 696,160 | 3,035,023 | 200,000 | ||||||||||||||||||
Net realized losses | (585,388 | ) | (4,422,001 | ) | (102,076 | ) | (93,834 | ) | (608,729 | ) | — |
* The aggregate contractual waiver period covering this report is from Oct. 4, 2019 through Oct. 31, 2021.
3. Investments
For the six months ended June 30, 2020, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||
Purchases | $97,368,900 | $159,485,134 | $7,779,672 | $6,619,335 | $23,687,096 | $9,880,633 | ||||||||||||||||||
Sales | 132,312,647 | 193,435,434 | 13,103,022 | 11,797,701 | 31,422,597 | 11,035,452 |
At June 30, 2020, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At June 30, 2020, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||
Cost of investments | $ | 475,766,957 | $ | 331,284,844 | $ | 34,515,336 | $ | 32,897,103 | $ | 118,947,374 | $ | 42,440,851 | ||||||||||||
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Aggregate unrealized appreciation of investments | $ | 34,151,458 | $ | 23,344,287 | $ | 2,711,761 | $ | 2,785,851 | $ | 9,659,960 | $ | 3,362,357 | ||||||||||||
Aggregate unrealized depreciation of investments | (4,896,082 | ) | (5,045,555 | ) | (451,554 | ) | (349,927 | ) | (901,264 | ) | (306,281 | ) | ||||||||||||
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Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||
Net unrealized appreciation of investments | $29,255,376 | $18,298,732 | $2,260,207 | $2,435,924 | $8,758,696 | $3,056,076 | ||||||||||||||||||
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At Dec. 31, 2019, capital loss carryforwards available to offset future realized capital gains, are as follows:
Loss carryforward character | ||||||||||||
Short-term | Long-term | Total | ||||||||||
Delaware Tax-Exempt Income Fund | $ | 8,876,952 | $ | — | $ | 8,876,952 | ||||||
Delaware Tax-Exempt Opportunities Fund | 613,621 | — | 613,621 | |||||||||
Delaware Tax-Free California II Fund | 159,898 | — | 159,898 | |||||||||
Delaware Tax-Free New York II Fund | 1,574,632 | — | 1,574,632 | |||||||||
Delaware Tax-Free Oregon Fund | 595,323 | 579,965 | 1,175,288 |
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 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) |
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
3. Investments (continued)
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 June 30, 2020:
Delaware Tax-Exempt Income Fund | ||||||||||
Level 2 | ||||||||||
Securities | ||||||||||
Assets: | ||||||||||
Municipal Bonds | $505,022,333 | |||||||||
Delaware Tax-Exempt Opportunities Fund | ||||||||||
Level 2 | ||||||||||
Securities | ||||||||||
Assets: | ||||||||||
Municipal Bonds | $349,583,576 | |||||||||
Delaware Tax-Free California II Fund | ||||||||||
Level 2 | ||||||||||
Securities | ||||||||||
Assets: | ||||||||||
Municipal Bonds | $36,675,543 | |||||||||
Short-Term Investments | 100,000 | |||||||||
Total Value of Securities | $36,775,543 | |||||||||
Delaware Tax-Free New Jersey Fund | ||||||||||
Level 2 | ||||||||||
Securities | ||||||||||
Assets: | ||||||||||
Municipal Bonds | $35,333,027 | |||||||||
Delaware Tax-Free New York II Fund | ||||||||||
Level 2 | ||||||||||
Securities | ||||||||||
Assets: | ||||||||||
Municipal Bonds | $127,706,070 |
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Delaware Tax-Free Oregon Fund | ||||||||||
Level 2 | ||||||||||
Securities | ||||||||||
Assets: | ||||||||||
Municipal Bonds | $45,146,927 | |||||||||
Short-Term Investments | 350,000 | |||||||||
Total Value of Securities | $45,496,927 |
During the six months ended June 30, 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 based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to the Fund’s net assets. During the six months ended June 30, 2020, there were no Level 3 investments.
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
4. Capital Shares
Transactions in capital shares were as follows:
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | ||||||||||||||||||||||
Six months ended | Year ended | Six months ended | Year ended | Six months ended | Year ended | |||||||||||||||||||
6/30/20 | 12/31/19 | 6/30/20 | 12/31/19 | 6/30/20 | 12/31/19 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 582,602 | 2,740,063 | 434,113 | 1,606,775 | 38,500 | 409,286 | ||||||||||||||||||
Class B* | — | 2,822 | — | 44 | — | — | ||||||||||||||||||
Institutional Class** | 293,879 | 1,523,595 | 114,071 | 354,397 | 48,985 | 87,293 | ||||||||||||||||||
Class R6*** | — | 383,256 | — | 430,514 | — | 778 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
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Class A | 644,860 | 1,361,440 | 281,583 | 572,172 | 35,413 | 76,236 | ||||||||||||||||||
Class B* | — | 595 | — | 645 | — | — | ||||||||||||||||||
Institutional Class** | 26,689 | 145,128 | 4,685 | 25,020 | 1,412 | 10,768 | ||||||||||||||||||
Class R6*** | 17 | 24 | 10 | 86 | 12 | 16 | ||||||||||||||||||
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1,548,047 | 6,156,923 | 834,462 | 2,989,653 | 124,322 | 584,377 | |||||||||||||||||||
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Shares redeemed: |
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Class A | (5,639,299 | ) | (10,618,496 | ) | (2,660,630 | ) | (5,707,770 | ) | (555,015 | ) | (1,181,185 | ) | ||||||||||||
Class B* | — | (72,392 | ) | — | (90,033 | ) | — | — | ||||||||||||||||
Institutional Class** | (449,366 | ) | (6,493,846 | ) | (85,423 | ) | (1,421,132 | ) | (28,081 | ) | (598,785 | ) | ||||||||||||
Class R6*** | — | (798,379 | ) | — | (902,941 | ) | — | (544 | ) | |||||||||||||||
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(6,088,665 | ) | (17,983,113 | ) | (2,746,053 | ) | (8,121,876 | ) | (583,096 | ) | (1,780,514 | ) | |||||||||||||
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Net decrease | (4,540,618 | ) | (11,826,190 | ) | (1,911,591 | ) | (5,132,223 | ) | (458,774 | ) | (1,196,137 | ) | ||||||||||||
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Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | ||||||||||||||||||||||
Six months ended | Year ended | Six months ended | Year ended | Six months ended | Year ended | |||||||||||||||||||
6/30/20 | 12/31/19 | 6/30/20 | 12/31/19 | 6/30/20 | 12/31/19 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 23,442 | 163,436 | 105,084 | 497,651 | 53,672 | 353,142 | ||||||||||||||||||
Class B* | — | 36 | — | 25 | — | 12 | ||||||||||||||||||
Institutional Class** | 1,554 | 19,824 | 38,236 | 55,769 | 37,555 | 193,094 | ||||||||||||||||||
Class R6*** | — | 775 | — | 694 | — | 744 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
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Class A | 27,230 | 75,880 | 99,070 | 220,071 | 31,999 | 74,692 | ||||||||||||||||||
Class B* | — | 181 | — | 414 | — | — | ||||||||||||||||||
Institutional Class** | 2,181 | 6,653 | 1,738 | 14,254 | 2,362 | 5,969 | ||||||||||||||||||
Class R6*** | 10 | 17 | 11 | 15 | 10 | 15 | ||||||||||||||||||
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54,417 | 266,802 | 244,139 | 788,893 | 125,598 | 627,668 | |||||||||||||||||||
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Shares redeemed: | ||||||||||||||||||||||||
Class A | (513,334 | ) | (716,086 | ) | (863,807 | ) | (1,990,555 | ) | (321,088 | ) | (884,411 | ) | ||||||||||||
Class B* | — | (21,001 | ) | — | (80,045 | ) | — | (387 | ) | |||||||||||||||
Institutional Class** | (24,319 | ) | (103,797 | ) | (18,723 | ) | (761,887 | ) | (14,464 | ) | (333,093 | ) | ||||||||||||
Class R6*** | — | (538 | ) | — | (478 | ) | — | (504 | ) | |||||||||||||||
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(537,653 | ) | (841,422 | ) | (882,530 | ) | (2,832,965 | ) | (335,552 | ) | (1,218,395 | ) | |||||||||||||
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Net decrease | (483,236 | ) | (574,620 | ) | (638,391 | ) | (2,044,072 | ) | (209,954 | ) | (590,727 | ) | ||||||||||||
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All Class B shares converted into Class A shares on June 14, 2019. These transactions are included as subscriptions and redemptions in the tables above and the “Statements of changes in net assets.” The share transactions associated with the conversion are as follows:
Year ended 12/31/19 | ||||||||||||
Class B | Class A | |||||||||||
Shares | Shares | Value | ||||||||||
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Delaware Tax-Exempt Income Fund | 69,771 | 69,396 | $ | 647,468 | ||||||||
Delaware Tax-Exempt Opportunities Fund | 78,081 | 77,704 | 1,285,996 | |||||||||
Delaware Tax-Free New Jersey Fund | 20,580 | 20,467 | 261,776 | |||||||||
Delaware Tax-Free New York II Fund | 74,148 | 74,044 | 1,052,171 | |||||||||
Delaware Tax-Free Oregon Fund | 89 | 89 | 1,185 |
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
4. Capital Shares (continued)
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 the “Statements of changes in net assets.” Delaware Tax-Exempt Income Fund, Delaware Tax-Exempt Opportunities Fund, Delaware Tax-Free California II Fund, Delaware Tax-Free New Jersey Fund, and Delaware Tax-Free Oregon Fund did not have any exchange transactions. For the six months ended June 30, 2020 and the year ended Dec. 31, 2019, the Fund had the following exchange transactions:
Six months ended 6/30/20 | ||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||
Institutional | ||||||||||||||||
Class A | Class | Class R6 | ||||||||||||||
Shares | Shares | Shares | Value | |||||||||||||
Delaware Tax-Free New York II Fund | 26,375 | 26,389 | — | $375,249 | ||||||||||||
Year ended 12/31/19 | ||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||
Institutional | ||||||||||||||||
Class A | Class | Class R6 | ||||||||||||||
Shares | Shares | Shares | Value | |||||||||||||
Delaware Tax-Exempt Income Fund | 294,969 | 221,584 | 73,507 | $2,746,043 | ||||||||||||
Delaware Tax-Exempt Opportunities Fund | 53,902 | 37,953 | 15,852 | 895,522 | ||||||||||||
Delaware Tax-Free California II Fund | 26,176 | 26,249 | — | 329,536 | ||||||||||||
Delaware Tax-Free New York II Fund | 14,242 | 2,192 | 12,056 | 203,431 | ||||||||||||
Delaware Tax-Free Oregon Fund | 24,337 | 23,834 | 552 | 319,219 |
* All Class B shares were converted into Class A shares on June 14, 2019.
** On Oct. 4, 2019, Advisor Class shares were reorganized into Institutional Class shares.
*** On Oct. 4, 2019, Institutional Class shares were reorganized into Class R6 shares.
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5. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), is a participant in a $250,000,000 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. The revolving line of credit available was increased from $250,000,000 to $275,000,000 on May 6, 2020. Under the agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants are permitted to borrow up to a maximum of one-third of their net assets under the agreement. Each Participant is individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the agreement expires on Nov. 2, 2020.
The Funds had no amounts outstanding as of June 30, 2020, or at any time during the period then ended.
6. Securities Lending
Each Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day, the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned securities is determined by the securities lending agent.
Cash collateral received by each fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; and asset-backed securities. A fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
6. Securities Lending (continued)
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. Each Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. Each Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, each Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among each Fund, the security lending agent, and the borrower. Each Fund records security lending income net of allocations to the security lending agent and the borrower.
Each Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of each Fund’s cash collateral account may be less than the amount each Fund would be required to return to the borrowers of the securities and each Fund would be required to make up for this shortfall.
During the six months ended June 30, 2020, each Fund had no securities out on loan.
7. 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.
The risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.
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
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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.
At June 30, 2020, the percentages of each Fund’s net assets insured by bond insurers are listed as follows and these securities have been identified on the “Schedules of investments.”
Delaware Tax-Exempt Income Fund | Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free California II Fund | Delaware Tax-Free New Jersey Fund | Delaware Tax-Free New York II Fund | Delaware Tax-Free Oregon Fund | |||||||||||||||||||
Assured Guaranty Corporation | 1.02% | 0.40% | — | — | 1.97% | 2.43% | ||||||||||||||||||
Assured Guaranty Municipal Corporation | 8.35% | 3.03% | 2.38% | 11.89% | 4.54% | 3.66% | ||||||||||||||||||
AMBAC Assurance Corporation | — | 0.40% | — | — | 2.50% | — | ||||||||||||||||||
Build America Mutual Assurance | 0.19% | — | — | 4.73% | — | — | ||||||||||||||||||
National Public Finance Guarantee Corporation | 7.53% | 0.49% | 0.36% | 7.71% | 0.81% | 2.97% | ||||||||||||||||||
17.09% | 4.32% | 2.74% | 24.33% | 9.82% | 9.06% |
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. Each Fund 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
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Notes to financial statements
Delaware Funds® by Macquarie tax-exempt funds
7. Geographic, Credit and Market Risks (continued)
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 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, the Board has delegated to DMC, the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedules of investments.”
8. 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 the Funds’ existing contracts and expects the risk of loss to be remote.
9. Recent Accounting Pronouncements
In March 2017, the FASB issued an 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 Dec. 15, 2018. Management has implemented ASU 2017-08 and determined that the impact of this guidance to the Fund’s net assets at the end of the period is not material.
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In August 2018, the 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. The ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. Management has implemented the ASU 2018-13 on the financial statements.
In March 2020, the 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 Dec. 31, 2022. As of the financial reporting period, Management is evaluating the impact, if any, of applying this ASU.
10. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to June 30, 2020, that would require recognition or disclosure in the Funds’ financial statements.
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Other Fund information (Unaudited)
Delaware Funds® by Macquarie tax-exempt 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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Board of trustees | ||||||
Shawn K. Lytle | Ann D. Borowiec | Lucinda S. Landreth | Thomas K. Whitford | |||
President and | Former Chief Executive | Former Chief Investment | Former Vice Chairman | |||
Chief Executive Officer Delaware Funds® by Macquarie Philadelphia, PA | Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY | Officer Assurant, Inc. New York, NY
Frances A. | PNC Financial Services Group Pittsburgh, PA
Christianna Wood Chief Executive Officer | |||
Thomas L. Bennett | Joseph W. Chow | Sevilla-Sacasa | and President | |||
Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA | Former Executive Vice President State Street Corporation Boston, MA | Former Chief Executive Officer Banco Itaú International Miami, FL | Gore Creek Capital, Ltd. | |||
Golden, CO | ||||||
Janet L. Yeomans | ||||||
Former Vice President and | ||||||
John A. Fry | Treasurer 3M Company St. Paul, MN | |||||
Jerome D. Abernathy | President Drexel University Philadelphia, PA | |||||
Managing Member | ||||||
Stonebrook Capital | ||||||
Management, LLC | ||||||
Jersey City, NJ | ||||||
Affiliated officers | ||||||
David F. Connor | Daniel V. Geatens | Richard Salus | ||||
Senior Vice President, | Vice President and | Senior Vice President and | ||||
General Counsel, | Treasurer | Chief Financial Officer | ||||
and Secretary | Delaware Funds | Delaware Funds | ||||
Delaware Funds | by Macquarie | by Macquarie | ||||
by Macquarie | Philadelphia, PA | Philadelphia, PA | ||||
Philadelphia, PA |
This semiannual report is for the information of Delaware Tax-Exempt Income Fund, Delaware Tax-Exempt Opportunities Fund, Delaware Tax-Free California II Fund, Delaware Tax-Free New Jersey Fund, Delaware Tax-Free New York II Fund, and Delaware Tax-Free Oregon 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.
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Delaware Funds® by Macquarie privacy practices notice
We are committed to protecting the privacy of our potential, current, and former customers. To provide the products and services you request, we must collect personal information about you. We do not sell your personal information to third parties. We collect your personal information and share it with third parties as necessary to provide you with the products or services you request and to administer your business with us. This notice describes our current privacy practices. While your relationship with us continues, we will update and send our privacy practices notice as required by law. We are committed to continuing to protect your personal information even after that relationship ends. You do not need to take any action because of this notice.
Information we may collect and use
We collect personal information about you to help us identify you as our potential, current, or former customer; to process your requests and transactions; to offer investment services to you; or to tell you about our products or services we believe you may want to use. The type of personal information we collect depends on the products or services you request and may include the following:
●Information from you: When you submit your application or other forms or request information on our products (online or otherwise), you give us information such as your name, address, Social Security number, and your financial history.
●Information about your transactions: We keep information about your transactions with us, such as the products you buy from us; the amount you paid for those products; your investment activity; and your account balances.
●Information from your employer: In connection with administering your retirement plan, we may obtain information about you from your employer.
●Information received from third parties: In order to verify your identity or to prevent fraud, we may obtain information about you from third parties.
How we use your personal information
We do not disclose nonpublic personal information about our potential, current, and former customers unless allowed or required by law. We may share your personal information within our companies and with certain service
providers. They use this information to process transactions you have requested; provide customer service; and inform you of products or services we offer that you may find useful. Our service providers may or may not be affiliated with us. They include financial service providers (for example, third-party administrators; broker/dealers; and other financial services companies with whom we have joint marketing agreements). Our service providers also include nonfinancial companies and individuals (for example, consultants; information services vendors; and companies that perform mailing or marketing services on our behalf). Information obtained from a report prepared by a service provider may be kept by the service provider and shared with other persons; however, we require our service providers to protect your personal information and to use or disclose it only for the work they are performing for us, or as permitted by law.
We also may provide information to regulatory authorities, law enforcement officials, and others to prevent fraud or when we believe in good faith that the law requires disclosure. In the event of a sale of all or part of our businesses, we may share customer information as part of the sale. We do not sell or share your information with outside marketers who may want to offer you their own products and services.
Security of information
Keeping your information safe is one of our most important responsibilities. We maintain physical, electronic, and procedural safeguards to protect your information. Our employees are authorized to access your information only when they need it to provide you with products and services or to
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maintain your accounts. Employees who have access to your personal information are required to keep it strictly confidential. We provide training to our employees about the importance of protecting the privacy of your information.
Macquarie Investment Management (MIM), a member of Macquarie Group, refers to the companies comprising the asset management division of Macquarie Group. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
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.
This privacy practices notice is being provided on behalf of the following:
Delaware Capital Management
Delaware Capital Management Advisers, Inc.
Delaware Distributors, Inc.
Delaware Distributors, L.P.
Delaware Funds® by Macquarie
Delaware Enhanced Global Dividend and Income Fund
Delaware Group® Adviser Funds
Delaware Group Cash Reserve
Delaware Group Equity Funds I
Delaware Group Equity Funds II
Delaware Group Equity Funds IV
Delaware Group Equity Funds V
Delaware Group Foundation Funds
Delaware Group Global & International Funds
Delaware Group Government Fund
Delaware Group Income Funds
Delaware Group Limited-Term Government Funds
Delaware Group State Tax-Free Income Trust
Delaware Group Tax-Free Fund
Delaware Investments® Colorado Municipal Income Fund, Inc.
Delaware Investments Dividend and Income Fund, Inc.
Delaware Investments Minnesota Municipal Income Fund II, Inc.
Delaware Investments National Municipal Income Fund
Delaware Pooled® Trust
Delaware VIP® Trust
Voyageur Insured Funds
Voyageur Intermediate Tax Free Funds
Voyageur Mutual Funds
Voyageur Mutual Funds II
Voyageur Mutual Funds III
Voyageur Tax Free Funds
Delaware Investments Advisers Partner, Inc.
Delaware Investments Distribution Partner, Inc.
Delaware Investments Fund Advisers
Delaware Investments Fund Services Company
Delaware Investments Management Company, LLC
Delaware Management Company
Delaware Management Trust Company
Delaware Service Company, Inc.
Four Corners Capital Management, LLC
Macquarie Absolute Return MBS Fund, LP
Macquarie Absolute Return MBS Fund
Macquarie Alternative Strategies
Macquarie Allegiance Capital, LLC
Macquarie Asset Advisers
Macquarie Emerging Markets Small Cap Fund, LLC
Macquarie Funds Management Hong Kong Limited
Macquarie Global Infrastructure Total Return Fund Inc.
Macquarie Investment Management Advisers
Macquarie Investment Management Austria Kapitalanlage AG
Macquarie Investment Management Business Trust
Macquarie Investment Management Europe Limited
Macquarie Investment Management Europe S.A.
Macquarie Investment Management General Partner, Inc.
Macquarie Investment Management Global Limited
Macquarie Multi-Cap Growth Fund, LP
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Delaware Funds® by Macquarie privacy practices notice
Macquarie Real Estate Absolute Return Partners, Inc.
Macquarie Total Return Fund Inc.
Optimum Fund Trust
Retirement Financial Services, Inc.
Revised February 2020
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Delaware Funds® by Macquarie
Equity funds
US equity funds
● | Delaware Equity Income Fund |
(formerly, First Investors Equity Income Fund)1
● | Delaware Growth and Income Fund |
(formerly, First Investors Growth & Income Fund)1
● | Delaware Growth Equity Fund |
(formerly, First Investors Select Growth Fund)1
● | Delaware Mid Cap Value Fund |
● | Delaware Opportunity Fund |
(formerly, First Investors Opportunity Fund)1
● | Delaware Select Growth Fund2 |
● | Delaware Small Cap Core Fund3 |
● | Delaware Small Cap Growth Fund |
● | Delaware Small Cap Value Fund |
● | Delaware Smid Cap Growth Fund |
● | Delaware Special Situations Fund |
(formerly, First Investors Special Situations Fund)1
● | Delaware U.S. Growth Fund |
● | Delaware Value® Fund |
Global / international equity funds
● Delaware Emerging Markets Fund
● Delaware Global Equity Fund
(formerly, First Investors Global Fund)1
● Delaware International Fund
(formerly, First Investors International Fund)1
● Delaware International Small Cap Fund
● Delaware International Value Equity Fund
Alternative / specialty funds
● Delaware Covered Call Strategy Fund
(formerly, First Investors Covered Call Strategy Fund)1
● Delaware Healthcare Fund
● Delaware Hedged U.S. Equity Opportunities Fund
(formerly, First Investors Hedged U.S. Equity Opportunities Fund)1
● Delaware Premium Income Fund
(formerly, First Investors Premium Income Fund)1
Multi-asset funds
● Delaware Global Listed Real Assets Fund
(formerly, Delaware REIT Fund)4
● Delaware Strategic Allocation Fund
(formerly, Delaware Foundation® Moderate Allocation Fund)
● Delaware Total Return Fund
(formerly, First Investors Total Return Fund)1
● Delaware Wealth Builder Fund
1On April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), a leading global investment management company, whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (Macquarie), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund (each, an “Acquiring Fund,” and collectively, the “Acquiring Funds”) in the Delaware Funds® by Macquarie family of funds (each, a “Reorganization” and together, the “Reorganizations”). Following the requisite approval of each Reorganization from shareholders of each First Investors Fund, each Acquiring Fund is managed by DMC and each Acquiring Fund has the same or substantially the same investment objective and the same or similar principal investment strategies and principal risks as the corresponding First Investors Fund. The Transaction closed on Oct. 4, 2019 (the “Closing Date”). Information, including without limitation historical holdings and performance information, relating to the Acquiring Funds for periods prior to the Closing Date has been provided by FIMCO and is attributable to the Acquired Funds.
Carefully consider a Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in each Fund’s prospectus and, if available, its summary prospectus. A Delaware Funds by Macquarie prospectus may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
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Fixed income funds
Taxable fixed income funds
● Delaware Corporate Bond Fund
● Delaware Diversified Income Fund
● Delaware Emerging Markets Debt Corporate Fund
(formerly, Delaware Emerging Markets Debt Fund)
● Delaware Extended Duration Bond Fund
● Delaware Floating Rate Fund
● Delaware Floating Rate II Fund
(formerly, First Investors Floating Rate Fund)1
● Delaware Fund for Income
(formerly, First Investors Fund For Income)1
● Delaware Government Cash Management Fund
(formerly, First Investors Government Cash Management Fund)1,5
● Delaware High-Yield Opportunities Fund
● Delaware International Opportunities Bond Fund
(formerly, First Investors International Opportunities Bond Fund)1
● Delaware Investment Grade Fund
(formerly, First Investors Investment Grade Fund)1
● Delaware Investments Ultrashort Fund
● Delaware Limited Duration Bond Fund
(formerly, First Investors Limited Duration Bond Fund)1
● Delaware Limited-Term Diversified Income Fund
● Delaware Strategic Income Fund
● Delaware Strategic Income II Fund
(formerly, First Investors Strategic Income Fund)1
Municipal fixed income funds
● Delaware Minnesota High-Yield Municipal Bond Fund
● Delaware National High-Yield Municipal Bond Fund
● Delaware Tax-Exempt Income Fund
(formerly, First Investors Tax Exempt Income Fund)1
● Delaware Tax-Exempt Opportunities Fund
(formerly, First Investors Tax Exempt Opportunities Fund)1
● Delaware Tax-Free Arizona Fund
● Delaware Tax-Free California Fund
● Delaware Tax-Free California II Fund
(formerly, First Investors California Tax Exempt Fund)1
● Delaware Tax-Free Colorado Fund
● Delaware Tax-Free Idaho Fund
● Delaware Tax-Free Minnesota Fund
● Delaware Tax-Free Minnesota Intermediate Fund
● Delaware Tax-Free New Jersey Fund
(formerly, First Investors New Jersey Tax Exempt Fund)1
● Delaware Tax-Free New York Fund
● Delaware Tax-Free New York II Fund
(formerly, First Investors New York Tax Exempt Fund)1
● Delaware Tax-Free Oregon Fund
(formerly, First Investors Oregon Tax Exempt Fund)1
● Delaware Tax-Free Pennsylvania Fund
● Delaware Tax-Free USA Fund
● Delaware Tax-Free USA Intermediate Fund
2On May 20, 2020, the Board of Trustees approved the replacement of the Fund’s current sub-advisor with the US Growth Equity team of the Fund’s investment manager, Delaware Management Company. In connection with this determination, the Board approved certain changes to the Fund’s investment strategies. These portfolio management and strategy changes were effective July 31, 2020. The investment strategy changes may result in higher portfolio turnover in the near term, as the new portfolio management team purchases and sells securities to accommodate the investment strategy changes. A higher portfolio turnover is likely to cause the Fund to realize capital gains and incur transaction costs. You should consult your financial advisor about the changes that will result from the investment strategy changes
3Closed to certain new investors.
4Effective Aug. 20, 2019, the Fund’s name, investment objectives, and portfolio managers changed. The new portfolio managers intend to reposition the Fund’s investment portfolio in accordance with its current investment process. Because everyone’s tax situation is unique, you should consult your tax professional about federal, state, local, or foreign tax consequences before making an investment in the Fund.
5On May 20, 2020, the Board of Trustees unanimously voted and approved a proposal to liquidate and dissolve Delaware Government Cash Management Fund (“Fund”). The liquidation and dissolution are expected to take effect on or about Sept. 25, 2020. The Fund closed to new investors and all sales efforts ceased as of the close of business on Thursday, July 2, 2020. However, the Fund will continue to accept purchases from existing shareholders (including reinvested dividends or capital gains) until close of business Wednesday, Sept. 23, 2020. Until the liquidation, shareholders of the Fund will have the opportunity to exchange their shares for shares of the same class of any other Delaware Funds by Macquarie fund. Any exchange would be made at the current net asset value of the Fund and the selected Delaware Fund. The Fund’s shareholders would not incur front-end or contingent deferred sales charges upon these exchanges as the funds do not typically carry loads or sales charges.
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Caring for your portfolio
Over a lifetime, things change. When they do, it’s important to ensure that your investments stay in tune with your personal situation.
If you decide to make some changes, check out the convenient options provided by Macquarie Investment Management. We try to make it easy for you to avoid some of the sales charges that you might otherwise have to pay when you withdraw and invest your money with another firm.
Most importantly, you may generally exchange all or part of your shares in one Delaware Funds® by Macquarie mutual fund for shares of the same class of another fund without paying a front-end sales charge or a contingent deferred sales charge (CDSC).
Choose the investment method suitable for you
After you’ve evaluated your overall investments, you have choices about how to implement any changes:
1. | Move assets all at once at any time. |
2. | Migrate funds to a different investment slowly through a systematic exchange. You can arrange automatic monthly exchanges of your shares in one Delaware fund for those in another Delaware fund. Systematic exchanges are subject to the same rules as regular exchanges, which are explained in the right column, including a $100 minimum monthly amount per fund. |
3. | Use our automatic investing plan for future investments in different vehicles. To allocate your future investments differently, the Macquarie Investment Management automatic investing plan allows you to make regular monthly or quarterly investments directly from your checking account. |
Important notes about exchanging or redeeming shares
For automated exchanges, a minimum exchange of $100 per fund is required monthly. If the value of your account is $5,000 or more, you can make systematic withdrawals of at least $25 monthly, or $75 quarterly. If the annual amount you withdraw is less than 12% of your account balance at the time the systematic withdrawal plan is established, the CDSC ordinarily applicable to certain fund classes will be waived. More details are available in your prospectus or at delawarefunds.com/literature.
If you exchange shares from Class R shares of any fund, you will pay any applicable sales charge on your new shares.
When exchanging Class C shares of one fund for the same class of shares in other funds, your new shares will be subject to the same CDSC as the shares you originally purchased. The holding period for the CDSC will also remain the same, with the amount of time you held your original shares being credited toward the holding period of your new shares.
You do not pay sales charges on shares that you acquired through the reinvestment of dividends. You may have to pay taxes on your exchange. When you exchange shares, you are purchasing shares in another fund, so you should be sure to get a copy of the fund’s prospectus and read it carefully before buying shares through an exchange.
We may refuse the purchase side of any exchange request if, in the manager’s judgment, the fund would be unable to invest effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected.
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Contact information
Shareholder assistance by phone
800 523-1918, weekdays from 8:30am to
6:00pm Eastern time
For securities dealers and financial
institutions representatives only
800 362-7500
Regular mail
P.O. Box 9876
Providence, RI 02940-8076
Overnight courier service
4400 Computer Drive
Westborough, MA 01581-1722
Macquarie Investment Management ● 2005 Market Street ● Philadelphia, PA 19103-7094
Effective Sept. 1, 2020: 610 Market Street ● Philadelphia, PA 19106-2354
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. Macquarie Investment Management (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, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A.
The Fund is distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than 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.
(1268452) | ||
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| SA-TEF 22502 [8/20]
| |
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
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
(a) (1) Code of Ethics
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
SIGNATURES
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.
DELAWARE GROUP® LIMITED-TERM GOVERNMENT FUNDS
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | September 4, 2020 |
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.
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | September 4, 2020 |
/s/ RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | September 4, 2020 |