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: | 811-03850 |
Exact name of registrant as specified in charter: | Delaware Group® Tax-Free Fund |
Address of principal executive offices: | 2005 Market Street |
Philadelphia, PA 19103 | |
Name and address of agent for service: | David F. Connor, Esq. |
2005 Market Street | |
Philadelphia, PA 19103 | |
Registrant’s telephone number, including area code: | (800) 523-1918 |
Date of fiscal year end: | August 31 |
Date of reporting period: | February 28, 2017 |
Item 1. Reports to Stockholders
Table of Contents
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Semiannual report
Fixed income mutual funds
Delaware Tax-Free USA Fund
Delaware Tax-Free USA Intermediate Fund
Delaware National High-Yield Municipal Bond Fund
February 28, 2017
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.
Table of Contents
Experience Delaware Investments
Delaware Investments is committed to the pursuit of consistently superior asset management and unparalleled client service. We believe in our investment processes, which seek to deliver consistent results, and in convenient services that help add value for our clients.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Manage your investments online
● | 24-hour access to your account information |
● | Obtain share prices |
● | Check your account balance and recent transactions |
● | Request statements or literature |
● | Make purchases and redemptions |
Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of Delaware Investments) are wholly owned subsidiaries of Macquarie Group Limited, a global provider of banking, financial, advisory, investment, and funds management services.
Neither Delaware Investments nor its affiliates referred to in this document 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 Macquarie Bank Limited (MBL), a subsidiary of Macquarie Group Limited and an affiliate of Delaware Investments. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Funds are governed by U.S. laws and regulations.
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Unless otherwise noted, views expressed herein are current as of Feb. 28, 2017, 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.
Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
© 2017 Delaware Management Holdings, Inc.
All third-party marks cited are the property of their respective owners.
Table of Contents
Disclosure of Fund expenses |
For the six-month period from September 1, 2016 to February 28, 2017 (Unaudited) |
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or 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 Sept. 1, 2016 to Feb. 28, 2017.
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 the Funds 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. The expenses shown in each table assume reinvestment of all dividends and distributions.
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Table of Contents
Disclosure of Fund expenses |
For the six-month period from September 1, 2016 to February 28, 2017 (Unaudited) |
Delaware Tax-Free USA Fund
Expense analysis of an investment of $1,000
Beginning Account Value 9/1/16 | Ending Account Value 2/28/17 | Annualized Expense Ratio | Expenses Paid During Period 9/1/16 to 2/28/17* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $969.00 | 0.81% | $3.95 | ||||||||||||
Class C | 1,000.00 | 966.20 | 1.56% | 7.61 | ||||||||||||
Institutional Class | 1,000.00 | 970.50 | 0.56% | 2.74 | ||||||||||||
Hypothetical 5% return (5% return before expenses) |
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Class A | $1,000.00 | $1,020.78 | 0.81% | $4.06 | ||||||||||||
Class C | 1,000.00 | 1,017.06 | 1.56% | 7.80 | ||||||||||||
Institutional Class | 1,000.00 | 1,022.02 | 0.56% | 2.81 | ||||||||||||
Delaware Tax-Free USA Intermediate Fund | ||||||||||||||||
Expense analysis of an investment of $1,000 | ||||||||||||||||
Beginning Account Value 9/1/16 | Ending Account Value 2/28/17 | Annualized Expense Ratio | Expenses Paid During Period 9/1/16 to 2/28/17* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $969.50 | 0.75% | $3.66 | ||||||||||||
Class C | 1,000.00 | 965.40 | 1.60% | 7.80 | ||||||||||||
Institutional Class | 1,000.00 | 969.90 | 0.60% | 2.93 | ||||||||||||
Hypothetical 5% return (5% return before expenses) |
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Class A | $1,000.00 | $1,021.08 | 0.75% | $3.76 | ||||||||||||
Class C | 1,000.00 | 1,016.86 | 1.60% | 8.00 | ||||||||||||
Institutional Class | 1,000.00 | 1,021.82 | 0.60% | 3.01 |
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Table of Contents
Delaware National High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
Beginning Account Value 9/1/16 | Ending Account Value 2/28/17 | Annualized Expense Ratio | Expenses Paid During Period 9/1/16 to 2/28/17* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $961.60 | 0.85% | $4.13 | ||||||||||||
Class C | 1,000.00 | 957.30 | 1.60% | 7.76 | ||||||||||||
Institutional Class | 1,000.00 | 962.40 | 0.60% | 2.92 | ||||||||||||
Hypothetical 5% return (5% return before expenses) |
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Class A | $1,000.00 | $1,020.58 | 0.85% | $4.26 | ||||||||||||
Class C | 1,000.00 | 1,016.86 | 1.60% | 8.00 | ||||||||||||
Institutional Class | 1,000.00 | 1,021.82 | 0.60% | 3.01 |
* | “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 181/365 (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. |
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Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Free USA Fund | As of February 28, 2017 (Unaudited) |
Sector designations may be different than the sector designations presented in other fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 99.06% | |||
Corporate Revenue Bonds | 12.82% | |||
Education Revenue Bonds | 5.80% | |||
Electric Revenue Bonds | 2.73% | |||
Healthcare Revenue Bonds | 14.05% | |||
Housing Revenue Bonds | 0.99% | |||
Lease Revenue Bonds | 3.79% | |||
Local General Obligation Bonds | 6.83% | |||
Pre-Refunded/Escrowed to Maturity Bonds | 19.50% | |||
Special Tax Revenue Bonds | 10.07% | |||
State General Obligation Bonds | 5.30% | |||
Transportation Revenue Bonds | 14.29% | |||
Water & Sewer Revenue Bonds | 2.89% | |||
Short-Term Investment | 0.04% | |||
Total Value of Securities | 99.10% | |||
Receivables and Other Assets Net of Liabilities | 0.90% | |||
Total Net Assets | 100.00% |
* As of the date of this report, Delaware Tax-Free USA Fund held bonds issued by or on behalf of territories and the states of the United States as follows:
State / territory | Percentage of net assets | |||
Alabama | 1.00% | |||
Alaska | 0.69% | |||
Arizona | 3.04% | |||
California | 13.34% | |||
Colorado | 1.37% | |||
Connecticut | 1.17% | |||
Florida | 0.59% | |||
Georgia | 2.37% | |||
Illinois | 5.70% | |||
Indiana | 0.86% | |||
Kansas | 1.53% | |||
Louisiana | 0.64% | |||
Maryland | 2.90% | |||
Massachusetts | 5.22% | |||
Michigan | 1.34% | |||
Minnesota | 1.55% | |||
Missouri | 2.91% | |||
New Jersey | 7.01% | |||
New York | 16.97% |
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Table of Contents
State / territory | Percentage of net assets | |||
North Carolina | 2.26% | |||
Ohio | 4.25% | |||
Oklahoma | 3.55% | |||
Oregon | 0.35% | |||
Pennsylvania | 1.65% | |||
Tennessee | 1.09% | |||
Texas | 11.01% | |||
U.S. Virgin Islands | 0.13% | |||
Utah | 1.07% | |||
Virginia | 1.22% | |||
Washington | 1.18% | |||
West Virginia | 0.53% | |||
Wisconsin | 0.61% | |||
Total Value of Securities | 99.10% |
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Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Tax-Free USA Intermediate Fund | As of February 28, 2017 (Unaudited) |
Sector designations may be different than the sector designations presented in other fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 99.02% | |||
Corporate Revenue Bonds | 11.90% | |||
Education Revenue Bonds | 6.70% | |||
Electric Revenue Bonds | 3.72% | |||
Healthcare Revenue Bonds | 9.82% | |||
Lease Revenue Bonds | 4.88% | |||
Local General Obligation Bonds | 8.27% | |||
Pre-Refunded/Escrowed to Maturity Bonds | 6.72% | |||
Special Tax Revenue Bonds | 12.64% | |||
State General Obligation Bonds | 12.92% | |||
Transportation Revenue Bonds | 14.71% | |||
Water & Sewer Revenue Bonds | 6.74% | |||
Short-Term Investments | 0.24% | |||
Total Value of Securities | 99.26% | |||
Receivables and Other Assets Net of Liabilities | 0.74% | |||
Total Net Assets | 100.00% |
* As of the date of this report, Delaware Tax-Free USA Intermediate Fund held bonds issued by or on behalf of territories and the states of the U.S. as follows:
State / territory | Percentage of net assets | |||
Alabama | 0.96% | |||
Arizona | 6.65% | |||
California | 15.85% | |||
Colorado | 0.24% | |||
Connecticut | 1.29% | |||
Florida | 1.26% | |||
Georgia | 1.57% | |||
Guam | 0.56% | |||
Idaho | 0.56% | |||
Illinois | 5.38% | |||
Kansas | 1.12% | |||
Louisiana | 3.12% | |||
Maryland | 2.99% | |||
Massachusetts | 2.57% | |||
Michigan | 1.13% | |||
Minnesota | 3.74% | |||
Missouri | 1.19% | |||
New Jersey | 4.88% | |||
New York | 17.31% | |||
Oklahoma | 0.18% |
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Table of Contents
State / territory | Percentage of net assets | |||
Oregon | 1.93% | |||
Pennsylvania | 5.69% | |||
Tennessee | 0.80% | |||
Texas | 12.22% | |||
Utah | 0.43% | |||
Virginia | 2.94% | |||
Washington | 1.54% | |||
Wisconsin | 1.16% | |||
Total Value of Securities | 99.26% |
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Table of Contents
Security type / sector / state / territory allocations | ||
Delaware National High-Yield Municipal Bond Fund | As of February 28, 2017 (Unaudited) |
Sector designations may be different than the sector designations presented in other fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 96.34% | |||
Corporate Revenue Bonds | 17.42% | |||
Education Revenue Bonds | 15.09% | |||
Electric Revenue Bonds | 0.57% | |||
Healthcare Revenue Bonds | 27.46% | |||
Housing Revenue Bonds | 0.78% | |||
Lease Revenue Bonds | 5.15% | |||
Local General Obligation Bonds | 3.68% | |||
Pre-Refunded/Escrowed to Maturity Bonds | 6.79% | |||
Resource Recovery Revenue Bonds | 0.59% | |||
Special Tax Revenue Bonds | 5.99% | |||
State General Obligation Bonds | 1.21% | |||
Transportation Revenue Bonds | 8.17% | |||
Water & Sewer Revenue Bonds | 3.44% | |||
Short-Term Investments | 3.67% | |||
Total Value of Securities | 100.01% | |||
Liabilities Net of Receivables and Other Assets | (0.01%) | |||
Total Net Assets | 100.00% |
* As of the date of this report, Delaware National High-Yield Municipal Bond Fund held bonds issued by or on behalf of territories and the states of the U.S. as follows:
State / territory | Percentage of net assets | |||
Alabama | 3.43% | |||
Alaska | 0.18% | |||
Arizona | 4.58% | |||
California | 15.15% | |||
Colorado | 3.16% | |||
Connecticut | 0.21% | |||
Delaware | 0.61% | |||
District of Columbia | 0.94% | |||
Florida | 4.08% | |||
Georgia | 1.16% | |||
Guam | 0.03% | |||
Hawaii | 1.74% | |||
Idaho | 0.67% | |||
Illinois | 6.20% | |||
Indiana | 1.07% | |||
Iowa | 0.22% | |||
Kansas | 0.62% | |||
Kentucky | 1.36% |
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Table of Contents
State / territory | Percentage of net assets | |||
Louisiana | 1.63% | |||
Maine | 0.16% | |||
Maryland | 1.75% | |||
Massachusetts | 0.43% | |||
Michigan | 0.97% | |||
Minnesota | 4.37% | |||
Mississippi | 0.36% | |||
Missouri | 1.62% | |||
Nevada | 0.54% | |||
New Hampshire | 0.13% | |||
New Jersey | 5.29% | |||
New York | 9.04% | |||
North Carolina | 0.75% | |||
Ohio | 4.96% | |||
Oklahoma | 0.94% | |||
Oregon | 0.49% | |||
Pennsylvania | 4.51% | |||
Puerto Rico | 0.50% | |||
South Carolina | 0.46% | |||
Texas | 8.82% | |||
Utah | 0.18% | |||
Vermont | 0.10% | |||
Virginia | 2.20% | |||
Washington | 1.30% | |||
West Virginia | 0.87% | |||
Wisconsin | 2.14% | |||
Wyoming | 0.09% | |||
Total Value of Securities | 100.01% |
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Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Fund | February 28, 2017 (Unaudited) |
Principal amount° | Value (U.S. $) | |||||||
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Municipal Bonds – 99.06% | ||||||||
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Corporate Revenue Bonds – 12.82% | ||||||||
Buckeye, Ohio Tobacco Settlement Financing Authority | 14,145,000 | $ | 13,702,544 | |||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Asset-Backed Senior Notes) Series A-1 5.75% 6/1/47 | 8,025,000 | 8,065,927 | ||||||
(Capital Appreciation-Asset-Backed) Series B 1.548% 6/1/47 ^ | 18,135,000 | 2,465,272 | ||||||
Harris County, Texas Industrial Development Corporation Solid Waste Disposal Revenue | 2,955,000 | 3,201,743 | ||||||
Illinois Railsplitter Tobacco Settlement Authority | ||||||||
6.00% 6/1/28 | 6,000,000 | 6,826,140 | ||||||
6.25% 6/1/24 | 6,810,000 | 6,812,179 | ||||||
Louisiana Public Facilities Authority | 1,500,000 | 597,075 | ||||||
Lower Alabama Gas District | 4,400,000 | 5,021,984 | ||||||
M-S-R Energy Authority, California Gas Revenue | 1,915,000 | 2,405,757 | ||||||
New Jersey Economic Development Authority Special Facilities Revenue | 1,365,000 | 1,487,591 | ||||||
New York Liberty Development Corporation Revenue | ||||||||
(Goldman Sachs Headquarters) 5.25% 10/1/35 | 685,000 | 820,616 | ||||||
(Second Priority - Bank of America Tower) Class 3 6.375% 7/15/49 | 1,000,000 | 1,089,970 | ||||||
New York Transportation Development Corporation Special Facility Revenue | 2,000,000 | 2,086,080 | ||||||
Salt Verde, Arizona Financial Senior Gas Revenue | 1,600,000 | 1,826,560 | ||||||
Shoals, Indiana | 1,940,000 | 2,215,073 | ||||||
Tobacco Settlement Financing Corporation, New Jersey Revenue | 3,920,000 | 3,797,108 | ||||||
Valparaiso, Indiana | 1,780,000 | 2,126,726 | ||||||
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64,548,345 | ||||||||
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Table of Contents
Principal amount° | Value (U.S. $) | |||||||
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Municipal Bonds (continued) | ||||||||
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Education Revenue Bonds – 5.80% | ||||||||
Bowling Green, Ohio Student Housing Revenue CFP I | 5,295,000 | $ | 5,613,812 | |||||
California Educational Facilities Authority Revenue | 1,000,000 | 1,103,050 | ||||||
California State University | 700,000 | 807,072 | ||||||
Connecticut State Health & Educational Facilities Authority Revenue | 3,000,000 | 3,167,790 | ||||||
Gainesville, Georgia Redevelopment Authority Educational Facilities Revenue | 2,400,000 | 2,288,808 | ||||||
Marietta, Georgia Development Authority Revenue | 3,300,000 | 3,388,242 | ||||||
Massachusetts Development Finance Agency | 3,150,000 | 3,548,475 | ||||||
New Jersey Economic Development Authority Revenue | 4,225,000 | 4,567,056 | ||||||
Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue | 3,000,000 | 3,143,640 | ||||||
Provo, Utah Charter School Revenue | 1,560,000 | 1,561,357 | ||||||
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29,189,302 | ||||||||
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Electric Revenue Bonds – 2.73% | ||||||||
City Public Service Board of San Antonio, Texas | 7,000,000 | 8,459,570 | ||||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue | 4,610,000 | 5,290,713 | ||||||
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13,750,283 | ||||||||
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Healthcare Revenue Bonds – 14.05% | ||||||||
Alachua County, Florida Health Facilities Authority | 1,000,000 | 1,186,870 | ||||||
Apple Valley, Minnesota | ||||||||
(Senior Living, LLC Project Fourth Tier) Series D 7.25% 1/1/52 | 2,500,000 | 2,469,925 | ||||||
(Senior Living, LLC Project Second Tier) Series B 5.00% 1/1/47 | 2,500,000 | 2,523,375 | ||||||
California Health Facilities Financing Authority Revenue | ||||||||
(Providence St. Joseph Health) Series A 4.00% 10/1/47 | 2,035,000 | 2,027,816 | ||||||
(Sutter Health) Series B 5.00% 11/15/46 | 5,000,000 | 5,573,600 |
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Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Fund |
Principal amount° | Value (U.S. $) | |||||||
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Municipal Bonds (continued) | ||||||||
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Healthcare Revenue Bonds (continued) | ||||||||
California Municipal Finance Authority Revenue | 2,550,000 | $ | 2,792,123 | |||||
Colorado Health Facilities Authority Revenue | ||||||||
(American Baptist) 8.00% 8/1/43 | 2,040,000 | 2,315,359 | ||||||
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | 1,875,000 | 2,059,819 | ||||||
Fairfax County, Virginia Industrial Development Authority | 1,635,000 | 1,764,933 | ||||||
Maricopa County, Arizona Industrial Development Authority Health Facilities Revenue | 3,690,000 | 3,994,093 | ||||||
Maricopa County, Arizona Industrial Development Authority Senior Living Facility Revenue Bonds | 1,195,000 | 1,107,837 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue | 2,000,000 | 2,206,020 | ||||||
Massachusetts Development Finance Agency | 1,000,000 | 1,105,610 | ||||||
Metropolitan Government Nashville & Davidson County, Tennessee Health & Educational Facilities Building | 5,000,000 | 5,484,350 | ||||||
Michigan Finance Authority | ||||||||
(Trinity Health) Series 2016 5.00% 12/1/33 | 4,655,000 | 5,226,355 | ||||||
Henry Ford Health System 5.00% 11/15/41 | 1,405,000 | 1,527,713 | ||||||
Moon, Pennsylvania Industrial Development Authority | 2,250,000 | 2,310,323 | ||||||
New Hope, Texas Cultural Education Facilities | ||||||||
(Cardinal Bay - Village on the Park) | ||||||||
Series A1 4.00% 7/1/36 | 310,000 | 310,707 | ||||||
Series A1 5.00% 7/1/46 | 770,000 | 837,629 | ||||||
Series B 4.25% 7/1/36 | 465,000 | 459,536 | ||||||
Series B 5.00% 7/1/46 | 770,000 | 803,233 | ||||||
New York State Dormitory Authority | ||||||||
(Orange Regional Medical Center) | ||||||||
144A 5.00% 12/1/34 # | 400,000 | 431,268 | ||||||
144A 5.00% 12/1/35 # | 1,200,000 | 1,289,628 | ||||||
144A 5.00% 12/1/37 # | 800,000 | 855,600 | ||||||
North Carolina Medical Care Commission Health Care Facilities Revenue | ||||||||
(First Mortgage - Galloway Ridge Project) | 1,555,000 | 1,615,225 |
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Table of Contents
Principal amount° | Value (U.S. $) | |||||||
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Municipal Bonds (continued) | ||||||||
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Healthcare Revenue Bonds (continued) | ||||||||
Ohio State Higher Educational Facility Community Revenue (Cleveland Clinic Health System Obligation Group) Series A 5.25% 1/1/33 | 2,000,000 | $ | 2,061,260 | |||||
Orange County, New York Funding Corporation Assisted Living Residence Revenue | 3,000,000 | 2,906,760 | ||||||
Oregon Health & Science University Revenue | 2,000,000 | 1,762,340 | ||||||
Palm Beach County, Florida Health Facilities Authority | ||||||||
(Sinai Residences Boca Raton Project) 7.25% 6/1/34 | 120,000 | 141,083 | ||||||
Series A 7.50% 6/1/49 | 610,000 | 723,399 | ||||||
Payne County, Oklahoma Economic Development Authority | 1,500,000 | 1,489,665 | ||||||
Public Finance Authority, Wisconsin | 540,000 | 500,866 | ||||||
Rochester, Minnesota | 2,350,000 | 2,595,340 | ||||||
Southwestern Illinois Development Authority Revenue | 2,000,000 | 2,555,420 | ||||||
Tempe, Arizona Industrial Development Authority Revenue | 1,000,000 | 1,057,460 | ||||||
West Virginia Hospital Finance Authority Revenue | 2,900,000 | 2,681,630 | ||||||
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70,754,170 | ||||||||
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Housing Revenue Bonds – 0.99% | ||||||||
California Municipal Finance Authority Mobile Home Park Revenue | 4,555,000 | 4,960,987 | ||||||
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4,960,987 | ||||||||
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Lease Revenue Bonds – 3.79% | ||||||||
New Jersey Economic Development Authority | 100,000 | 108,545 | ||||||
New Jersey Transportation Trust Fund Authority | ||||||||
Series B 5.00% 6/15/21 | 3,235,000 | 3,465,170 | ||||||
Series B 5.50% 6/15/31 | 5,000,000 | 5,255,000 | ||||||
(Transportation Program) Series AA 5.00% 6/15/24 | 5,000,000 | 5,286,500 |
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Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Fund |
Principal amount° | Value (U.S. $) | |||||||
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Municipal Bonds (continued) | ||||||||
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Lease Revenue Bonds (continued) | ||||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | 2,245,000 | $ | 2,226,277 | |||||
St. Louis, Missouri Industrial Development Authority Leasehold Revenue | 3,035,000 | 2,746,645 | ||||||
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19,088,137 | ||||||||
|
| |||||||
Local General Obligation Bonds – 6.83% | ||||||||
Chicago, Illinois | ||||||||
Series A 5.25% 1/1/29 | 2,020,000 | 2,022,141 | ||||||
Series A 6.00% 1/1/38 | 595,000 | 614,129 | ||||||
Georgetown, Texas Independent School District (School Building) | ||||||||
5.00% 8/15/24 (PSF) | 1,430,000 | 1,589,574 | ||||||
5.00% 8/15/26 (PSF) | 1,000,000 | 1,109,800 | ||||||
Los Angeles, California Community College District | 2,500,000 | 3,055,350 | ||||||
Mecklenburg, North Carolina | 8,000,000 | 9,787,280 | ||||||
Montgomery, Maryland | 5,755,000 | 6,917,798 | ||||||
New York City, New York | ||||||||
Series I-1 5.375% 4/1/36 | 1,835,000 | 1,984,241 | ||||||
Subseries D-1 5.00% 10/1/36 | 6,500,000 | 7,318,610 | ||||||
|
| |||||||
34,398,923 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 19.50% | ||||||||
Atlanta, Georgia Water & Wastewater Revenue | 5,500,000 | 6,246,570 | ||||||
Brooklyn Arena Local Development, New York Pilot Revenue | 8,230,000 | 9,477,833 | ||||||
Butler County, Pennsylvania Hospital Authority Revenue | 2,500,000 | 2,837,850 | ||||||
California Statewide Communities Development Authority School Facility Revenue | 5,145,000 | 5,620,912 | ||||||
Central Texas Regional Mobility Authority Revenue | 5,160,000 | 6,050,977 | ||||||
Illinois Finance Authority Revenue | 3,000,000 | 3,426,930 |
14 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
Koyukuk, Alaska Revenue | 3,000,000 | $ | 3,496,950 | |||||
Louisiana Public Facilities Authority Revenue | 2,190,000 | 2,645,980 | ||||||
Massachusetts Development Finance Agency | ||||||||
(Harvard University) | ||||||||
Series A 5.50% 11/15/36-18§ | 1,160,000 | 1,251,570 | ||||||
Series B-2 5.25% 2/1/34-21§ | 5,000,000 | 5,751,200 | ||||||
(Unrefunded - Harvard University) Series A | 3,355,000 | 3,619,844 | ||||||
Massachusetts State Health & Educational Facilities Authority Revenue | 5,000,000 | 5,536,500 | ||||||
Missouri State Health & Educational Facilities Authority Revenue | 5,000,000 | 5,237,850 | ||||||
New Jersey Economic Development Authority | 900,000 | 1,051,722 | ||||||
New Jersey Educational Facilities Authority Revenue | 1,435,000 | 1,639,717 | ||||||
New York City, New York Water & Sewer System | 910,000 | 968,413 | ||||||
New York State Dormitory Authority Revenue Non State Supported Debt | ||||||||
(Orange Regional Medical Center) | ||||||||
6.25% 12/1/37-18§ | 2,250,000 | 2,457,337 | ||||||
6.50% 12/1/21-18§ | 2,745,000 | 2,967,674 | ||||||
North Texas Tollway Authority Revenue | 2,930,000 | 3,059,301 | ||||||
Oklahoma State Turnpike Authority Revenue | 13,535,000 | 16,382,899 | ||||||
San Francisco, California City & County Public Utilities Commission Water Revenue | 5,000,000 | 5,684,150 | ||||||
San Juan, Texas Higher Education Finance Authority Education Revenue | 1,500,000 | 1,775,280 | ||||||
Virgin Islands Public Finance Authority Revenue | 635,000 | 676,364 |
15 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
Wisconsin Housing & Economic Developing Authority Revenue | 340,000 | $ | 353,750 | |||||
|
| |||||||
98,217,573 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 10.07% | ||||||||
Kansas State Department of Transportation | 5,300,000 | 6,369,805 | ||||||
Massachusetts School Building Authority | 2,500,000 | 2,907,800 | ||||||
Mosaic, Virginia District Community Development Authority Revenue | 3,980,000 | 4,394,199 | ||||||
New Jersey Economic Development Authority Revenue | 2,695,000 | 2,851,822 | ||||||
New York City, New York Industrial Development Agency | 1,000,000 | 1,112,230 | ||||||
New York City, New York Transitional Finance Authority Future Tax Secured Fiscal 2011 | ||||||||
5.00% 5/1/40 | 2,500,000 | 2,844,575 | ||||||
Series A-1 5.00% 11/1/42 | 10,000,000 | 11,311,100 | ||||||
Series C 5.25% 11/1/25 | 6,000,000 | 6,832,980 | ||||||
Series D 5.00% 2/1/26 | 3,000,000 | 3,400,350 | ||||||
New York State Dormitory Authority | 6,000,000 | 6,465,060 | ||||||
Tampa, Florida Sports Authority Revenue Sales Tax | 825,000 | 892,724 | ||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | 1,365,000 | 1,341,658 | ||||||
|
| |||||||
50,724,303 | ||||||||
|
| |||||||
State General Obligation Bonds – 5.30% | ||||||||
California State | ||||||||
5.25% 11/1/40 | 3,795,000 | 4,260,837 | ||||||
Various Purposes | ||||||||
5.00% 8/1/27 | 2,500,000 | 2,998,450 | ||||||
5.00% 11/1/43 | 3,000,000 | 3,389,430 | ||||||
6.00% 4/1/38 | 4,060,000 | 4,480,494 | ||||||
6.50% 4/1/33 | 2,570,000 | 2,862,723 | ||||||
Connecticut State | 2,475,000 | 2,742,102 |
16 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
State General Obligation Bonds (continued) | ||||||||
Washington State | 5,000,000 | $ | 5,939,250 | |||||
|
| |||||||
26,673,286 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 14.29% | ||||||||
Chicago, Illinois O’Hare International Airport | ||||||||
Series B 5.00% 1/1/33 | 2,345,000 | 2,606,374 | ||||||
Series D 5.25% 1/1/42 | 2,000,000 | 2,287,400 | ||||||
Dallas, Texas Love Field | ||||||||
5.00% 11/1/35 (AMT) | 1,000,000 | 1,121,290 | ||||||
5.00% 11/1/36 (AMT) | 1,000,000 | 1,117,810 | ||||||
Maryland Economic Development Corporation Revenue | 5,075,000 | 5,457,452 | ||||||
New Jersey Turnpike Authority | 5,000,000 | 5,775,450 | ||||||
North Texas Tollway Authority Revenue | ||||||||
Series A 5.00% 1/1/34 | 5,000,000 | 5,601,200 | ||||||
(Unrefunded - First Tier) Series A 6.00% 1/1/24 | 415,000 | 430,160 | ||||||
Phoenix, Arizona Civic Improvement Corporation Airport Revenue Junior Lien | 1,800,000 | 2,008,314 | ||||||
Port Authority of New York & New Jersey Special Project | 4,000,000 | 4,641,360 | ||||||
(JFK International Air Terminal) | ||||||||
6.00% 12/1/42 | 4,735,000 | 5,330,284 | ||||||
6.50% 12/1/28 | 5,500,000 | 5,608,240 | ||||||
Salt Lake City, Utah Airport Revenue | 3,350,000 | 3,807,643 | ||||||
St. Louis, Missouri Airport Revenue | 5,995,000 | 6,669,917 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | ||||||||
(LBJ Infrastructure) | ||||||||
7.00% 6/30/40 | 5,715,000 | 6,533,845 | ||||||
7.50% 6/30/33 | 1,560,000 | 1,807,962 | ||||||
(NTE Mobility Partners) | ||||||||
6.75% 6/30/43 (AMT) | 2,490,000 | 2,870,497 | ||||||
6.875% 12/31/39 | 5,500,000 | 6,223,305 | ||||||
7.00% 12/31/38 (AMT) | 1,830,000 | 2,084,425 | ||||||
|
| |||||||
71,982,928 | ||||||||
|
|
17 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Water & Sewer Revenue Bonds – 2.89% | ||||||||
Chicago, Illinois Waterworks Revenue | 1,400,000 | $ | 1,551,998 | |||||
Dominion, Colorado Water & Sanitation District | 2,500,000 | 2,499,150 | ||||||
Massachusetts Water Resources Authority | 2,470,000 | 2,586,559 | ||||||
New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue | 3,090,000 | 3,275,524 | ||||||
Southern California Water Replenishment District | ||||||||
5.00% 8/1/33 | 2,000,000 | 2,321,640 | ||||||
5.00% 8/1/34 | 2,000,000 | 2,311,900 | ||||||
|
| |||||||
14,546,771 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $465,294,276) | 498,835,008 | |||||||
|
| |||||||
| ||||||||
Short-Term Investment – 0.04% | ||||||||
| ||||||||
Variable Rate Demand Note – 0.04%¤ | ||||||||
Minneapolis-St. Paul, Minnesota Housing & Redevelopment Authority Health Care Revenue | 200,000 | 200,000 | ||||||
|
| |||||||
Total Short-Term Investment (cost $200,000) | 200,000 | |||||||
|
| |||||||
Total Value of Securities – 99.10% | $ | 499,035,008 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 28, 2017, the aggregate value of Rule 144A securities was $4,782,274, which represents 0.95% of the Fund’s net assets. See Note 6 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 Feb. 28, 2017. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in U.S. dollars 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 yield at the time of purchase. |
18 |
Table of Contents
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
FHA – Federal Housing Administration
LOC – Letter of Credit
N.A. – National Association
NATL-RE – Insured by National Public Finance Guarantee Corporation
PSF – Guaranteed by Permanent School Fund
See accompanying notes, which are an integral part of the financial statements.
19 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Intermediate Fund | February 28, 2017 (Unaudited) |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds – 99.02% | ||||||||
| ||||||||
Corporate Revenue Bonds – 11.90% | ||||||||
Chesterfield County, Virginia Economic Development Authority Pollution Control Revenue | 1,460,000 | $ | 1,577,983 | |||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Asset-Backed Senior Notes) Series A-1 4.50% 6/1/27 | 1,865,000 | 1,879,193 | ||||||
(Asset-Backed Senior Notes) Series A-1 5.00% 6/1/33 | 700,000 | 700,014 | ||||||
(Capital Appreciation Asset-Backed) Series A | 11,340,000 | 1,541,560 | ||||||
Harris County, Texas Industrial Development Corporation Solid Waste Disposal Revenue | 2,750,000 | 2,979,625 | ||||||
Houston, Texas Airport System Revenue | 3,010,000 | 3,171,486 | ||||||
Illinois Railsplitter Tobacco Settlement Authority | ||||||||
5.25% 6/1/20 | 7,160,000 | 7,981,825 | ||||||
6.25% 6/1/24 | 7,500,000 | 7,502,400 | ||||||
Louisiana Public Facilities Authority | 1,905,000 | 758,666 | ||||||
Lower Alabama Gas District | 4,850,000 | 5,535,596 | ||||||
Maricopa County, Arizona Corporation Pollution Control Revenue | 6,000,000 | 6,552,900 | ||||||
Maryland Economic Development Corporation Pollution Control Revenue | 1,780,000 | 1,952,250 | ||||||
New Jersey Economic Development Authority Special Facilities Revenue | 1,890,000 | 2,059,741 | ||||||
New York Transportation Development Special Facilities Revenue | 610,000 | 650,364 | ||||||
Salt Verde, Arizona Financial Corporation Senior Gas Revenue | 3,050,000 | 3,510,306 | ||||||
Texas Municipal Gas Acquisition & Supply Corp. I | 2,000,000 | 2,372,360 |
20 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Tobacco Settlement Financing Corporation, New Jersey Revenue | ||||||||
Series 1A 4.75% 6/1/34 | 2,390,000 | $ | 2,290,337 | |||||
Series 1A 5.00% 6/1/29 | 4,050,000 | 4,047,124 | ||||||
Series 1A 5.00% 6/1/41 | 6,400,000 | 6,199,360 | ||||||
TSASC, New York | ||||||||
Series A 5.00% 6/1/30 | 475,000 | 536,422 | ||||||
Series A 5.00% 6/1/31 | 475,000 | 531,677 | ||||||
Tulsa, Oklahoma Airports Improvement Trust | 975,000 | 1,025,076 | ||||||
Wisconsin Public Finance Authority Exempt Facilities Revenue | 2,905,000 | 3,067,070 | ||||||
|
| |||||||
68,423,335 | ||||||||
|
| |||||||
Education Revenue Bonds – 6.70% | ||||||||
Bucks County, Pennsylvania Industrial Development Authority Revenue | 2,000,000 | 2,064,980 | ||||||
California State University | 2,000,000 | 2,378,380 | ||||||
California Statewide Communities Development Authority Revenue | 2,215,000 | 2,412,401 | ||||||
Clifton, Texas Higher Education Finance Corporation Revenue | 1,100,000 | 1,207,085 | ||||||
Connecticut State Health & Educational Facilities Authority Revenue | 5,000,000 | 5,279,650 | ||||||
Marietta, Georgia Development Authority Revenue | 605,000 | 622,309 | ||||||
Massachusetts Development Finance Agency Revenue | 2,690,000 | 3,019,821 | ||||||
Massachusetts State Health & Educational Facilities Authority Revenue | 3,000,000 | 3,403,110 | ||||||
Miami-Dade County, Florida Educational Facilities Authority | ||||||||
(University of Miami) | ||||||||
Series A 5.00% 4/1/30 | 520,000 | 582,904 | ||||||
Series A 5.00% 4/1/31 | 1,090,000 | 1,216,516 |
21 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Intermediate Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
New York City, New York Trust for Cultural Resources | 3,025,000 | $ | 3,398,315 | |||||
New York State Dormitory Authority Revenue | ||||||||
(Non State Supported Debt - Rockefeller University) | 1,055,000 | 1,148,568 | ||||||
(Touro College & University System) Series A | 1,335,000 | 1,423,390 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue | 5,290,000 | 5,965,533 | ||||||
University of Texas Permanent University Fund | 3,715,000 | 4,417,990 | ||||||
|
| |||||||
38,540,952 | ||||||||
|
| |||||||
Electric Revenue Bonds – 3.72% | ||||||||
California State Department Water Resources Power Supply Revenue | ||||||||
Series L 5.00% 5/1/19 | 6,000,000 | 6,524,520 | ||||||
Series N 5.00% 5/1/21 | 3,580,000 | 4,123,373 | ||||||
Long Island, New York Power Authority | 3,165,000 | 3,628,862 | ||||||
New York State Utility Debt Securitization Authority | 2,190,000 | 2,561,424 | ||||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue | 4,000,000 | 4,590,640 | ||||||
|
| |||||||
21,428,819 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 9.82% | ||||||||
Arizona Health Facilities Authority | 5,800,000 | 6,563,744 | ||||||
Berks County, Pennsylvania Hospital Authority Revenue | 4,405,000 | 4,824,664 | ||||||
California Health Facilities Financing Authority Revenue | 1,650,000 | 1,665,823 | ||||||
California Statewide Communities Development Authority | ||||||||
(Kaiser Permanente) Series A 5.00% 4/1/19 | 5,325,000 | 5,760,745 | ||||||
(Loma Linda University Medical Center) Series A 144A | 1,685,000 | 1,761,095 | ||||||
Capital Trust Agency, Florida | 1,630,000 | 1,662,567 | ||||||
Dauphin County, Pennsylvania General Authority | 1,780,000 | 1,955,953 |
22 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Illinois Finance Authority Revenue | 2,900,000 | $ | 3,199,338 | |||||
Lancaster County, Pennsylvania Hospital Authority | 2,430,000 | 2,744,442 | ||||||
Maricopa County, Arizona Industrial Development Authority Revenue | ||||||||
(Banner Health Obligation Group) Series A 5.00% 1/1/32 | 3,000,000 | 3,463,650 | ||||||
(Christian Care Surprise, Inc. Project) 144A 5.75% 1/1/36 # | 1,500,000 | 1,400,835 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue | 2,000,000 | 2,228,200 | ||||||
Missouri Health & Educational Facilities Authority | 935,000 | 956,692 | ||||||
Moon, Pennsylvania Industrial Development Authority | 2,440,000 | 2,507,198 | ||||||
New York State Dormitory Authority Revenue | ||||||||
(North Shore Long Island Jewish Health System) | ||||||||
Series A 5.00% 5/1/23 | 4,000,000 | 4,490,280 | ||||||
(Orange Regional Medical Center) | ||||||||
144A 5.00% 12/1/31 # | 1,000,000 | 1,090,440 | ||||||
144A 5.00% 12/1/32 # | 1,100,000 | 1,192,708 | ||||||
144A 5.00% 12/1/33 # | 1,000,000 | 1,079,040 | ||||||
Public Finance Authority, Wisconsin | 1,460,000 | 1,285,209 | ||||||
Rochester, Minnesota Health Care Facilities Revenue | 2,540,000 | 2,867,584 | ||||||
Southwestern Illinois Development Authority | 2,190,000 | 2,842,401 | ||||||
Washington State Housing Finance Commission | ||||||||
(Heron’s Key) | ||||||||
Series A 144A 6.50% 7/1/30 # | 455,000 | 455,673 | ||||||
Series A 144A 6.75% 7/1/35 # | 465,000 | 465,823 | ||||||
|
| |||||||
56,464,104 | ||||||||
|
| |||||||
Lease Revenue Bonds – 4.88% | ||||||||
California Statewide Communities Development Authority Revenue | 590,000 | 616,037 |
23 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Intermediate Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Lease Revenue Bonds (continued) | ||||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | 3,000,000 | $ | 3,342,930 | |||||
Idaho Building Authority Revenue | 2,800,000 | 3,218,992 | ||||||
Los Angeles County, California | 2,395,000 | 2,803,659 | ||||||
Michigan State Grant Anticipation Refunding Bonds | 2,000,000 | 2,384,540 | ||||||
Minnesota State General Fund Revenue | 3,265,000 | 3,783,221 | ||||||
New Jersey Economic Development Authority Revenue | ||||||||
5.00% 6/15/22 | 1,750,000 | 1,916,513 | ||||||
5.00% 6/15/23 | 1,250,000 | 1,357,000 | ||||||
New Jersey State Transportation Trust Fund Authority | 5,000,000 | 5,255,000 | ||||||
New York Liberty Development Revenue | 1,000,000 | 1,073,290 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | 2,350,000 | 2,318,157 | ||||||
|
| |||||||
28,069,339 | ||||||||
|
| |||||||
Local General Obligation Bonds – 8.27% | ||||||||
Chesterfield County, Virginia | 4,070,000 | 4,738,986 | ||||||
Chicago, Illinois | ||||||||
Series A 5.25% 1/1/29 | 640,000 | 640,678 | ||||||
Series C 5.00% 1/1/26 | 1,280,000 | 1,277,197 | ||||||
Conroe, Texas Independent School District | 3,070,000 | 3,386,701 | ||||||
Dallas, Texas Independent School District | 6,705,000 | 7,672,800 | ||||||
Fort Worth, Texas Independent School District | 2,000,000 | 2,340,560 | ||||||
New York City, New York | ||||||||
Series A-1 5.00% 8/1/19 | 3,500,000 | 3,561,460 | ||||||
Series E 5.00% 8/1/23 | 3,685,000 | 4,354,896 | ||||||
Subseries D-1 5.00% 10/1/30 | 4,000,000 | 4,518,720 | ||||||
San Francisco, California Bay Area Rapid Transit District | 4,000,000 | 4,728,720 |
24 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Local General Obligation Bonds (continued) | ||||||||
School District of Philadelphia, Pennsylvania | 3,215,000 | $ | 3,582,442 | |||||
Washington County, Maryland Suburban Sanitary Commission | 5,750,000 | 6,756,193 | ||||||
|
| |||||||
47,559,353 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 6.72% | ||||||||
Atlanta, Georgia Water & Wastewater Revenue | 2,925,000 | 3,302,793 | ||||||
Brooklyn Arena Local Development, New York Pilot Revenue | 5,500,000 | 6,333,910 | ||||||
Butler County, Pennsylvania Hospital Authority Revenue | 2,250,000 | 2,554,065 | ||||||
California State Department of Water Resources | 15,000 | 18,241 | ||||||
California State Economic Recovery | ||||||||
Series A 5.25% 7/1/21-19§ | 1,740,000 | 1,912,834 | ||||||
(Unrefunded) Series A 5.25% 7/1/21-19§ | 1,000,000 | 1,099,330 | ||||||
Conroe, Texas Independent School District | 795,000 | 883,817 | ||||||
Dauphin County, Pennsylvania General Authority | 1,620,000 | 1,798,589 | ||||||
Guam Government Limited Obligation Revenue | ||||||||
(Section 30) | ||||||||
Series A 5.375% 12/1/24-19§ | 1,750,000 | 1,947,015 | ||||||
Series A 5.625% 12/1/29-19§ | 1,125,000 | 1,259,258 | ||||||
Louisiana State Citizens Property Insurance Corporation Assessment Revenue | 2,000,000 | 2,148,400 | ||||||
Massachusetts Development Finance Agency Revenue | 1,670,000 | 1,907,858 | ||||||
Metropolitan New York Transportation Authority Revenue | ||||||||
Series 2008C 6.50% 11/15/28-18§ | 2,135,000 | 2,339,789 | ||||||
Series C 6.50% 11/15/28-18§ | 180,000 | 197,266 | ||||||
Minneapolis, Minnesota Health Care System Revenue | 3,710,000 | 4,052,285 | ||||||
New Jersey Economic Development Authority Revenue | 3,100,000 | 3,413,534 |
25 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Intermediate Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
New York State Dormitory Authority Revenue Non State Supported Debt | 2,000,000 | $ | 2,162,240 | |||||
Pennsylvania Economic Development Financing Authority Health System Revenue | 625,000 | 692,338 | ||||||
San Francisco, California City & County Airports Commission | 570,000 | 656,195 | ||||||
|
| |||||||
38,679,757 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 12.64% | ||||||||
Celebration Pointe, Florida Community Development District | ||||||||
4.75% 5/1/24 | 725,000 | 716,264 | ||||||
5.00% 5/1/34 | 880,000 | 860,200 | ||||||
Dallas, Texas Convention Center Hotel Development Revenue | ||||||||
Series A 5.00% 1/1/24 | 3,420,000 | 3,637,204 | ||||||
Series A 5.25% 1/1/23 | 5,375,000 | 5,741,682 | ||||||
Ernest N Morail-New Orleans, Louisiana Exhibition Hall Authority Special Tax Revenue | 2,330,000 | 2,637,420 | ||||||
Harris County-Houston, Texas Sports Authority | 1,805,000 | 2,062,898 | ||||||
Kansas State Department of Transportation | 4,000,000 | 4,745,280 | ||||||
Louisiana State Highway Improvement Revenue | 5,195,000 | 5,982,406 | ||||||
Massachusetts School Building Authority | 1,630,000 | 1,910,979 | ||||||
New Jersey Economic Development Authority Revenue | 1,480,000 | 1,545,446 | ||||||
New York City, New York Transitional Finance Authority Future Tax Secured | ||||||||
5.00% 11/1/23 | 2,865,000 | 3,426,139 | ||||||
Subseries A-1 5.00% 11/1/20 | 2,860,000 | 3,244,699 | ||||||
Subseries C 5.00% 11/1/27 | 4,150,000 | 4,884,550 | ||||||
Subseries E-1 5.00% 2/1/26 | 4,020,000 | 4,641,050 | ||||||
New York State Local Government Assistance Corporation Subordinate Lien | 3,360,000 | 3,754,498 |
26 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
New York State Urban Development | 6,500,000 | $ | 7,579,065 | |||||
Oregon State Lottery | 3,550,000 | 4,267,100 | ||||||
Richmond Heights, Missouri Tax Increment & Transaction Sales Tax Revenue Refunding & Improvement | 1,000,000 | 996,730 | ||||||
St. Joseph, Missouri Industrial Development Authority Tax Increment Revenue | 735,000 | 736,169 | ||||||
Virginia Commonwealth Transportation Board | 6,500,000 | 7,632,820 | ||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | 1,695,000 | 1,681,338 | ||||||
|
| |||||||
72,683,937 | ||||||||
|
| |||||||
State General Obligation Bonds – 12.92% | ||||||||
California State | ||||||||
5.00% 2/1/20 | 4,250,000 | 4,720,347 | ||||||
5.00% 9/1/30 | 1,715,000 | 2,019,687 | ||||||
Series C 5.00% 9/1/30 | 5,985,000 | 7,003,647 | ||||||
(Various Purposes) | ||||||||
5.00% 9/1/32 | 4,100,000 | 4,781,338 | ||||||
5.25% 9/1/28 | 7,750,000 | 8,888,320 | ||||||
Connecticut State | 2,000,000 | 2,129,060 | ||||||
Georgia State | 1,500,000 | 1,802,595 | ||||||
Maryland State | 3,000,000 | 3,537,240 | ||||||
Massachusetts Commonwealth | 3,875,000 | 4,521,350 | ||||||
Minnesota State | 8,000,000 | 9,431,600 | ||||||
New York State | 5,000,000 | 5,679,300 | ||||||
Oregon State | 6,000,000 | 6,819,840 | ||||||
Texas State | 4,300,000 | 5,035,730 |
27 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Intermediate Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
State General Obligation Bonds (continued) | ||||||||
Washington State | ||||||||
Series R-2015E 5.00% 7/1/31 | 3,250,000 | $ | 3,742,733 | |||||
(Various Purposes) Series 2015-A-1 5.00% 8/1/30 | 3,595,000 | 4,197,881 | ||||||
|
| |||||||
74,310,668 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 14.71% | ||||||||
Broward County, Florida Airport System Revenue | 2,000,000 | 2,193,840 | ||||||
Chicago, Illinois O’Hare International Airport Revenue | ||||||||
Series B 5.00% 1/1/32 | 1,000,000 | 1,115,110 | ||||||
Series B 5.00% 1/1/33 | 1,520,000 | 1,689,419 | ||||||
(General-Airport-Third Lien) Series C 5.25% 1/1/28 | 2,150,000 | 2,322,817 | ||||||
Houston, Texas Airports Commission Revenue Series B | ||||||||
5.00% 7/1/25 | 1,000,000 | 1,127,710 | ||||||
5.00% 7/1/26 | 3,000,000 | 3,383,130 | ||||||
Los Angeles, California Department of Airports | 540,000 | 550,832 | ||||||
Maryland State Economic Development Corporation Revenue | 2,535,000 | 2,732,705 | ||||||
Memphis-Shelby County, Tennessee Airport Authority Revenue | 4,110,000 | 4,593,870 | ||||||
Metropolitan New York Transportation Authority Revenue | 545,000 | 596,241 | ||||||
New Orleans, Louisiana Aviation Board | ||||||||
Series B 5.00% 1/1/32 (AGM) (AMT) | 2,900,000 | 3,206,385 | ||||||
Series B 5.00% 1/1/33 (AGM) (AMT) | 2,900,000 | 3,191,740 | ||||||
New York State Thruway Authority | 5,705,000 | 6,627,784 | ||||||
North Texas Tollway Authority Revenue | 485,000 | 504,303 | ||||||
Pennsylvania State Turnpike Commission Revenue | 3,590,000 | 4,037,458 | ||||||
Phoenix, Arizona Civic Improvement Corporation Airport Revenue | ||||||||
(Junior Lien) | ||||||||
Series A 5.00% 7/1/26 | 7,500,000 | 8,367,975 | ||||||
Series A 5.00% 7/1/33 | 3,355,000 | 3,791,284 | ||||||
Port Authority of New York & New Jersey | ||||||||
(194th Series) 5.00% 10/15/32 | 2,500,000 | 2,906,525 | ||||||
(JFK International Air Terminal) 6.50% 12/1/28 | 8,300,000 | 8,463,344 |
28 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Sacramento County, California Airport System Revenue | 2,020,000 | $ | 2,133,140 | |||||
Salt Lake City, Utah Airport Revenue | ||||||||
Series B 5.00% 7/1/31 | 500,000 | 589,790 | ||||||
Series B 5.00% 7/1/32 | 600,000 | 704,244 | ||||||
Series B 5.00% 7/1/33 | 1,000,000 | 1,161,200 | ||||||
San Francisco, California City & County Airport Commission - San Francisco International Airport | 1,430,000 | 1,641,626 | ||||||
St. Louis, Missouri Airport Revenue | 3,780,000 | 4,166,921 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien Revenue | ||||||||
(LBJ Infrastructure) 7.50% 6/30/33 | 3,625,000 | 4,201,194 | ||||||
(NTE Mobility Partners) | ||||||||
7.00% 12/31/38 (AMT) | 3,750,000 | 4,271,362 | ||||||
7.50% 12/31/31 | 3,765,000 | 4,316,121 | ||||||
|
| |||||||
84,588,070 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 6.74% | ||||||||
Atlanta, Georgia Water & Wastewater Revenue | 3,000,000 | 3,325,380 | ||||||
California State Department of Water Resources | 2,680,000 | 3,190,326 | ||||||
Chicago, Illinois Waterworks Revenue | 2,100,000 | 2,362,332 | ||||||
Dominion, Colorado Water & Sanitation District | 1,390,000 | 1,383,106 | ||||||
Fairfax, Virginia Sewer Revenue | 2,750,000 | 2,954,683 | ||||||
Great Lakes, Michigan Water Authority Water Supply System Revenue | 3,665,000 | 4,130,785 | ||||||
New York State Environmental Facilities Corporation Revenue | 1,405,000 | 1,483,553 | ||||||
Sacramento, California Water Revenue | 3,160,000 | 3,706,332 | ||||||
San Antonio, Texas Water System Revenue | ||||||||
Series A 5.00% 5/15/32 | 1,500,000 | 1,762,170 | ||||||
Series A 5.00% 5/15/33 | 2,250,000 | 2,628,157 |
29 |
Table of Contents
Schedules of investments | ||
Delaware Tax-Free USA Intermediate Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Water & Sewer Revenue Bonds (continued) | ||||||||
San Antonio, Texas Water System Revenue | ||||||||
(Junior Lien) | ||||||||
Series A 5.00% 5/15/21 | 1,000,000 | $ | 1,146,600 | |||||
Series A 5.00% 5/15/22 | 1,765,000 | 2,058,431 | ||||||
San Francisco, California City & County Public Utilities Commission Water Revenue Sub Series A 5.00% 11/1/27 | 7,430,000 | 8,611,816 | ||||||
|
| |||||||
38,743,671 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $546,182,270) | 569,492,005 | |||||||
|
| |||||||
| ||||||||
Short-Term Investments – 0.24% | ||||||||
| ||||||||
Variable Rate Demand Notes – 0.24%¤ | ||||||||
Minneapolis-St. Paul, Minnesota Housing & Redevelopment Authority Health Care Revenue | ||||||||
(Allina Health System) Series B-2 | ||||||||
0.50% 11/15/35 (LOC- JPMorgan Chase Bank N.A.) | 600,000 | 600,000 | ||||||
(Children’s Hospital Clinics) Series A-II | ||||||||
0.52% 8/15/37 (AGM) (SPA - U.S. Bank N.A.) | 200,000 | 200,000 | ||||||
(Health Care Facilities - Children’s Health Care) Series B | ||||||||
0.52% 8/15/25 (AGM) (SPA - U.S. Bank N.A.) | 600,000 | 600,000 | ||||||
|
| |||||||
Total Short-Term Investments (cost $1,400,000) | 1,400,000 | |||||||
|
| |||||||
Total Value of Securities – 99.26% | $ | 570,892,005 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 28, 2017, the aggregate value of Rule 144A securities was $10,562,779, which represents 1.84% of the Fund’s net assets. See Note 6 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 Feb. 28, 2017. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency. |
‡ | Non-income-producing security. Security is currently in default. |
● | Variable rate security. Each rate shown is as of Feb. 28, 2017. Interest rates reset periodically. |
30 |
Table of Contents
^ | Zero coupon security. The rate shown is the yield at the time of purchase. |
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
N.A. – National Association
PSF – Guaranteed by Permanent School Fund
SPA – Stand-by Purchase Agreement
See accompanying notes, which are an integral part of the financial statements.
31 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund | February 28, 2017 (Unaudited) |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds – 96.34% | ||||||||
| ||||||||
Corporate Revenue Bonds – 17.42% | ||||||||
Allegheny County, Pennsylvania Industrial Development Authority Revenue | 2,000,000 | $ | 1,804,200 | |||||
Buckeye, Ohio Tobacco Settlement Financing Authority | ||||||||
(Asset-Backed Senior Turbo) | ||||||||
Series A-2 5.875% 6/1/47 | 34,340,000 | 33,265,845 | ||||||
Series A-2 6.00% 6/1/42 | 3,100,000 | 2,998,785 | ||||||
Series A-2 6.50% 6/1/47 | 11,405,000 | 11,394,507 | ||||||
California Pollution Control Financing Authority Revenue | 5,000,000 | 5,193,000 | ||||||
California State Enterprise Development Authority Revenue | 1,000,000 | 1,096,400 | ||||||
Columbus County, North Carolina Industrial Facilities & Pollution Control Financing | 1,000,000 | 1,106,240 | ||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Asset-Backed Senior Notes) | ||||||||
Series A-1 5.125% 6/1/47 | 5,000,000 | 4,999,700 | ||||||
Series A-1 5.75% 6/1/47 | 10,735,000 | 10,789,749 | ||||||
(Capital Appreciation - Asset-Backed-1st Subordinate) | ||||||||
Series B 1.548% 6/1/47 ^ | 58,115,000 | 7,900,153 | ||||||
Houston, Texas Airport System Revenue | ||||||||
Series B-1 5.00% 7/15/35 (AMT) | 5,000,000 | 5,242,100 | ||||||
(Special Facilities Continental Airlines) Series A | ||||||||
6.625% 7/15/38 (AMT) | 2,000,000 | 2,208,500 | ||||||
(United Airlines Inc.) 5.00% 7/1/29 (AMT) | 1,150,000 | 1,211,697 | ||||||
Illinois Railsplitter Tobacco Settlement Authority | ||||||||
5.50% 6/1/23 | 2,010,000 | 2,271,843 | ||||||
6.00% 6/1/28 | 1,455,000 | 1,655,339 | ||||||
6.25% 6/1/24 | 2,635,000 | 2,635,843 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue | 3,000,000 | 3,428,940 | ||||||
Louisiana Public Facilities Authority | ||||||||
(LA Pellets Inc. Project) | ||||||||
144A 7.75% 7/1/39 (AMT)#‡ | 4,000,000 | 1,592,200 | ||||||
Series A 8.375% 7/1/39 (AMT)‡ | 3,500,000 | 1,392,860 | ||||||
Michigan Tobacco Settlement Financing Authority Revenue | 555,000 | 520,335 |
32 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Mission, Texas Economic Development Corporation Revenue | 4,500,000 | $ | 4,720,590 | |||||
M-S-R Energy Authority, California Gas Revenue | 2,500,000 | 3,398,325 | ||||||
New Jersey Economic Development Authority Special Facility Revenue | ||||||||
(Continental Airlines Inc. Project) | ||||||||
5.25% 9/15/29 (AMT) | 4,000,000 | 4,224,360 | ||||||
Series B 5.625% 11/15/30 (AMT) | 1,270,000 | 1,384,059 | ||||||
New York Liberty Development Corporation Revenue | 7,000,000 | 8,385,860 | ||||||
(Second Priority - Bank of America Tower) Class 3 | 2,000,000 | 2,179,940 | ||||||
Pennsylvania Economic Development Financing Authority | 4,500,000 | 4,769,550 | ||||||
Pima County, Arizona Industrial Development Authority Pollution Control Revenue | 500,000 | 546,400 | ||||||
Port of Seattle, Washington Industrial Development Corporation Special Facilities Revenue | 2,000,000 | 2,077,520 | ||||||
Public Authority for Colorado Energy Natural Gas Revenue | 2,000,000 | 2,682,100 | ||||||
Salt Verde, Arizona Financial Senior Gas Revenue | ||||||||
5.00% 12/1/37 | 11,765,000 | 13,430,924 | ||||||
5.25% 12/1/27 | 2,235,000 | 2,607,016 | ||||||
5.25% 12/1/28 | 1,050,000 | 1,230,243 | ||||||
5.50% 12/1/29 | 765,000 | 917,816 | ||||||
Shoals, Indiana | 1,625,000 | 1,855,409 | ||||||
Texas Municipal Gas Acquisition & Supply Corp I | 6,000,000 | 7,117,080 | ||||||
Tobacco Settlement Financing Authority Revenue, New York | 195,000 | 195,731 | ||||||
Tobacco Settlement Financing Corporation, Louisiana | 2,540,000 | 2,767,228 | ||||||
Tobacco Settlement Financing, New Jersey | 21,930,000 | 21,242,495 | ||||||
TSASC, New York | 705,000 | 766,835 |
33 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Tulsa, Oklahoma Municipal Airport Trust Revenue | ||||||||
Series A 5.50% 6/1/35 (AMT) | 2,000,000 | $ | 2,101,320 | |||||
(American Airlines) 5.00% 6/1/35 (AMT)● | 3,000,000 | 3,154,080 | ||||||
Valparaiso, Indiana | 2,865,000 | 3,423,073 | ||||||
Wisconsin Public Finance Authority | 2,000,000 | 1,882,540 | ||||||
|
| |||||||
199,768,730 | ||||||||
|
| |||||||
Education Revenue Bonds – 15.09% | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Basis Schools Projects) | ||||||||
Series A 144A 5.125% 7/1/37 # | 750,000 | 760,905 | ||||||
Series A 144A 5.375% 7/1/50 # | 1,000,000 | 1,015,110 | ||||||
(Kaizen Education Foundation Project) 144A | ||||||||
5.80% 7/1/52 # | 4,000,000 | 3,977,000 | ||||||
Arlington, Texas Higher Education Finance | ||||||||
(Arlington Classic Academy) 7.65% 8/15/40 | 1,000,000 | 1,092,700 | ||||||
(Leadership Preparatory School) | ||||||||
Series A 5.00% 6/15/36 | 700,000 | 690,572 | ||||||
Series A 5.00% 6/15/46 | 1,325,000 | 1,270,331 | ||||||
Bowling Green, Ohio Student Housing Revenue CFP I | 1,215,000 | 1,288,155 | ||||||
Buffalo & Erie County, New York Industrial Land Development Corporation Revenue | 910,000 | 891,227 | ||||||
Build NYC Resource, New York | ||||||||
5.00% 11/1/39 | 1,000,000 | 938,040 | ||||||
5.50% 11/1/44 | 2,500,000 | 2,492,725 | ||||||
Burbank, Illinois | 4,000,000 | 4,068,520 | ||||||
California Educational Facilities Authority Revenue | 1,500,000 | 1,654,575 | ||||||
California Municipal Finance Authority Revenue | ||||||||
(California Baptist University) Series A 144A | ||||||||
5.50% 11/1/45 # | 4,000,000 | 4,105,080 | ||||||
(Julian Charter School Project) Series A 144A | ||||||||
5.625% 3/1/45 # | 7,500,000 | 7,442,475 | ||||||
(Partnership Uplift Community Project) Series A | ||||||||
5.25% 8/1/42 | 1,700,000 | 1,734,765 | ||||||
(Santa Rosa Academy Project) Series A 6.00% 7/1/42 | 1,250,000 | 1,327,100 | ||||||
(Southwestern Law School) 6.50% 11/1/41 | 1,500,000 | 1,763,460 |
34 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
California Municipal Finance Authority Revenue | 1,000,000 | $ | 915,820 | |||||
California School Finance Authority | ||||||||
(Aspire Public Schools) | ||||||||
Series A 144A 5.00% 8/1/35 # | 585,000 | 614,712 | ||||||
Series A 144A 5.00% 8/1/40 # | 605,000 | 630,942 | ||||||
(Encore Education Obligated Group) Series A 144A | ||||||||
5.00% 6/1/52 # | 1,000,000 | 908,060 | ||||||
(New Designs Charter School) Series A 5.50% 6/1/42 | 2,650,000 | 2,723,935 | ||||||
(View Park Elementary & Middle Schools) | ||||||||
5.875% 10/1/44 | 1,000,000 | 1,057,570 | ||||||
6.00% 10/1/49 | 720,000 | 764,719 | ||||||
California State University | ||||||||
(Systemwide) | ||||||||
Series A 5.00% 11/1/26 | 3,250,000 | 3,999,223 | ||||||
Series A 5.00% 11/1/27 | 2,300,000 | 2,830,840 | ||||||
California Statewide Communities Development Authority Charter School Revenue | 1,915,000 | 2,178,676 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(California Baptist University Project) | ||||||||
7.50% 11/1/41 | 1,000,000 | 1,151,240 | ||||||
Series A 5.50% 11/1/38 | 2,000,000 | 2,032,100 | ||||||
(Lancer Educational Student Housing Project) Series A | ||||||||
144A 5.00% 6/1/46 # | 1,500,000 | 1,468,740 | ||||||
Capital Trust Agency, Florida | ||||||||
(River City Education Services Inc. Project) | ||||||||
5.375% 2/1/35 | 870,000 | 865,015 | ||||||
5.625% 2/1/45 | 1,500,000 | 1,488,435 | ||||||
Clifton, Texas Higher Education Finance Corporation Revenue | ||||||||
(Idea Public Schools) 5.75% 8/15/41 | 1,000,000 | 1,076,130 | ||||||
(Uplift Education) Series A 6.25% 12/1/45 | 1,000,000 | 1,104,260 | ||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(Charter School - Community Leadership Academy) | ||||||||
7.45% 8/1/48 | 2,000,000 | 2,305,560 | ||||||
(Charter School - Loveland Classical School) 144A | ||||||||
5.00% 7/1/46 # | 1,500,000 | 1,444,620 | ||||||
(Skyview Charter School) 144A 5.375% 7/1/44 # | 500,000 | 513,995 |
35 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
Colorado Educational & Cultural Facilities Authority Revenue | 1,000,000 | $ | 973,270 | |||||
Delaware State Economic Development Authority Revenue | ||||||||
(Charter School - Aspira Charter) | ||||||||
5.00% 6/1/36 | 700,000 | 704,704 | ||||||
5.00% 6/1/46 | 820,000 | 812,841 | ||||||
5.00% 6/1/51 | 1,035,000 | 1,020,386 | ||||||
District of Columbia Revenue | ||||||||
(KIPP Charter School) 6.00% 7/1/48 | 1,450,000 | 1,664,339 | ||||||
(Provident Group - Howard Properties) 5.00% 10/1/35 | 2,500,000 | 2,295,475 | ||||||
East Hempfield Township, Pennsylvania Industrial Development Authority | 1,000,000 | 1,058,980 | ||||||
Gainesville, Georgia Redevelopment Authority Educational Facilities Revenue | ||||||||
(Riverside Military Academy Project) | ||||||||
5.125% 3/1/27 | 2,800,000 | 2,799,860 | ||||||
5.125% 3/1/37 | 2,000,000 | 1,907,340 | ||||||
Hawaii State Department of Budget & Finance | ||||||||
Series A 144A 5.00% 1/1/45 # | 1,500,000 | 1,436,880 | ||||||
(Hawaii University) Series A 6.875% 7/1/43 | 2,000,000 | 2,165,080 | ||||||
Henderson, Nevada Public Improvement Trust | 2,000,000 | 2,133,780 | ||||||
Idaho Housing & Finance Association | ||||||||
Series A 5.00% 6/1/50 | 1,000,000 | 1,030,620 | ||||||
(Idaho Arts Charter School Incorporate) 144A | ||||||||
5.00% 12/1/36 # | 615,000 | 641,992 | ||||||
(North Star Charter School) | ||||||||
Series A 6.75% 7/1/48 | 529,150 | 522,297 | ||||||
Series B 144A 4.87% 7/1/49 #^ | 2,888,155 | 271,169 | ||||||
Illinois Finance Authority Charter School Revenue | 1,000,000 | 1,096,640 | ||||||
Illinois Finance Authority Revenue | ||||||||
(Lake Forest College) Series A 6.00% 10/1/48 | 1,000,000 | 1,062,380 | ||||||
(Rogers Park Montessori) | ||||||||
6.00% 2/1/34 | 675,000 | 702,452 | ||||||
6.125% 2/1/45 | 1,800,000 | 1,865,016 | ||||||
Illinois Finance Authority Student Housing Revenue | 1,000,000 | 1,113,890 |
36 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
Indiana State Finance Authority Revenue Educational Facilities | 1,000,000 | $ | 916,530 | |||||
Kanawha, West Virginia | 2,500,000 | 2,774,425 | ||||||
Louisiana Public Facilities Authority Revenue | 1,500,000 | 1,662,705 | ||||||
Maricopa County, Arizona Industrial Development Authority | 1,500,000 | 1,487,745 | ||||||
Marietta, Georgia Development Authority Revenue | 3,845,000 | 3,947,815 | ||||||
Maryland State Health & Higher Educational Facilities Authority Revenue | 1,000,000 | 1,028,720 | ||||||
Massachusetts State Development Finance Agency Revenue | 3,605,000 | 3,819,317 | ||||||
Miami-Dade County, Florida Industrial Development Authority | ||||||||
(Youth Co-Op Charter School) | ||||||||
Series A 144A 5.75% 9/15/35 # | 1,000,000 | 1,015,470 | ||||||
Series A 144A 6.00% 9/15/45 # | 1,000,000 | 1,022,070 | ||||||
Michigan Finance Authority Limited Obligation Revenue | ||||||||
(Higher Education Thomas M Cooley) 144A 6.75% 7/1/44 # | 3,500,000 | 3,553,690 | ||||||
(Public School Academy) (Old Redford) Series A 6.50% 12/1/40 | 900,000 | 913,626 | ||||||
(Public School Academy) (University Learning) 7.50% 11/1/40 | 1,000,000 | 1,055,680 | ||||||
Michigan Public Educational Facilities Authority Revenue | 950,000 | 955,111 | ||||||
Minnesota Higher Education Facilities Authority Revenue | 1,000,000 | 1,000,640 | ||||||
Nevada State Department of Business & Industry | 1,595,000 | 1,577,646 |
37 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
Nevada State Department of Business & Industry | 2,515,000 | $ | 2,451,974 | |||||
New Jersey Economic Development Authority Revenue | 1,500,000 | 1,621,440 | ||||||
New Jersey State Higher Education Student Assistance Authority Student Loan Revenue Series 1B 5.75% 12/1/39 (AMT) | 1,250,000 | 1,339,850 | ||||||
New York State Dormitory Authority | 2,875,000 | 3,093,443 | ||||||
North Texas Education Finance Revenue | 2,100,000 | 2,182,257 | ||||||
Oregon State Facilities Authority Revenue | ||||||||
(Concordia University Project) | ||||||||
Series A 144A 6.125% 9/1/30 # | 875,000 | 916,116 | ||||||
Series A 144A 6.375% 9/1/40 # | 500,000 | 525,190 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue | 2,400,000 | 1,861,968 | ||||||
Philadelphia, Pennsylvania Authority for Industrial Development Revenue | ||||||||
(1st Philadelphia Preparatory) 7.25% 6/15/43 | 1,230,000 | 1,409,482 | ||||||
(Discovery Charter School Project) | ||||||||
5.875% 4/1/32 | 450,000 | 452,124 | ||||||
6.25% 4/1/37 | 200,000 | 202,368 | ||||||
(Global Leadership Academy Project) 6.375% 11/15/40 | 1,000,000 | 1,052,730 | ||||||
(Green Woods Charter School) Series A 5.75% 6/15/42 | 1,600,000 | 1,633,472 | ||||||
(New Foundation Charter School Project) | ||||||||
6.625% 12/15/41 | 1,000,000 | 1,090,920 | ||||||
(Tacony Academy Charter School Project) | ||||||||
7.00% 6/15/43 | 1,540,000 | 1,720,334 | ||||||
Phoenix, Arizona Industrial Development Authority Revenue | ||||||||
(Basic Schools Projects) Series A 144A 5.00% 7/1/46 # | 4,000,000 | 3,975,360 | ||||||
(Basis School) 144A 5.00% 7/1/45 # | 2,000,000 | 1,990,860 | ||||||
(Choice Academies Project) | ||||||||
5.375% 9/1/32 | 1,000,000 | 1,048,980 | ||||||
5.625% 9/1/42 | 600,000 | 628,434 | ||||||
(Eagle College Preparatory Project) Series A | ||||||||
5.00% 7/1/43 | 450,000 | 448,663 | ||||||
(Rowan University Project) 5.00% 6/1/42 | 2,000,000 | 2,151,800 |
38 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds (continued) | ||||||||
Pima County, Arizona Industrial Development Authority Revenue | 2,000,000 | $ | 2,000,920 | |||||
Pottsboro, Texas Higher Education Finance Authority Revenue | ||||||||
Series A 5.00% 8/15/36 | 655,000 | 642,208 | ||||||
Series A 5.00% 8/15/46 | 1,000,000 | 951,650 | ||||||
Private Colleges & Universities Authority, Georgia Revenue | 1,005,000 | 1,073,682 | ||||||
Provo, Utah Charter School Revenue | 700,000 | 700,609 | ||||||
St. Paul, Minnesota Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Academia Cesar Chavez School Project) Series A | ||||||||
5.25% 7/1/50 | 2,560,000 | 2,551,808 | ||||||
(Hmong College Preparatory Academy Project) | ||||||||
Series A 5.75% 9/1/46 | 1,000,000 | 1,008,100 | ||||||
Series A 6.00% 9/1/51 | 3,000,000 | 3,048,480 | ||||||
Utah State Charter School Finance Authority Revenue | 1,290,000 | 1,376,327 | ||||||
Wisconsin Public Finance Authority Revenue | ||||||||
(Pine Lake Preparatory) 144A 5.50% 3/1/45 # | 3,460,000 | 3,534,078 | ||||||
(Roseman University Health Sciences Project) 5.75% 4/1/42 | 2,000,000 | 2,028,440 | ||||||
Wyoming Community Development Authority Student Housing Revenue | 1,000,000 | 1,095,080 | ||||||
Yonkers, New York Economic Development Corporation Education Revenue | 595,000 | 622,180 | ||||||
|
| |||||||
173,029,240 | ||||||||
|
| |||||||
Electric Revenue Bonds – 0.57% | ||||||||
Long Island, New York Power Authority | 1,960,000 | 2,170,367 | ||||||
South Carolina State Public Service Authority | 4,000,000 | 4,372,320 | ||||||
|
| |||||||
6,542,687 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 27.46% | ||||||||
Abag, California Finance Authority for Nonprofit Corporations | 1,650,000 | 1,809,720 |
39 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Alachua County, Florida Health Facilities Authority | ||||||||
(Oak Hammock University) | ||||||||
Series A 8.00% 10/1/42 | 1,000,000 | $ | 1,186,870 | |||||
Series A 8.00% 10/1/46 | 1,500,000 | 1,777,845 | ||||||
Allen County, Indiana Economic Development Revenue | 1,650,000 | 1,684,683 | ||||||
Antelope Valley, California Healthcare District | 1,000,000 | 953,640 | ||||||
Apple Valley, Minnesota | ||||||||
(Minnesota Senior Living LLC, Project) | ||||||||
Series B 5.00% 1/1/47 | 2,500,000 | 2,523,375 | ||||||
Series D 7.25% 1/1/52 | 7,290,000 | 7,202,299 | ||||||
Bexar County, Texas Health Facilities Development | 155,000 | 168,908 | ||||||
Birmingham, Alabama Special Care Facilities Financing Authority | ||||||||
(Methodist Home for the Aging) | ||||||||
5.50% 6/1/30 | 1,850,000 | 1,951,399 | ||||||
5.75% 6/1/35 | 1,500,000 | 1,547,640 | ||||||
5.75% 6/1/45 | 2,500,000 | 2,553,725 | ||||||
6.00% 6/1/50 | 2,650,000 | 2,731,302 | ||||||
Board of Managers Joint Guadalupe County-City of Seguin, Texas Hospital | 1,100,000 | 1,123,551 | ||||||
California Health Facilities Financing Authority Revenue | 2,010,000 | 2,002,905 | ||||||
California Municipal Finance Authority Revenue | ||||||||
(Eisenhower Medical Center) Series A 5.75% 7/1/40 | 1,000,000 | 1,086,780 | ||||||
(Northbay Healthcare Group) Series A 5.25% 11/1/47 | 500,000 | 537,650 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(BE Group) 144A 7.25% 11/15/41 # | 500,000 | 552,755 | ||||||
(Loma Linda University Medical Center) 5.50% 12/1/54 | 13,000,000 | 13,877,500 | ||||||
Series A 5.25% 12/1/29 | 3,000,000 | 3,247,830 | ||||||
Series A 144A 5.25% 12/1/56 # | 3,000,000 | 3,163,980 | ||||||
Camden County, New Jersey Improvement Authority Revenue | 2,500,000 | 2,774,825 |
40 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Capital Trust Agency, Florida | 5,000,000 | $ | 5,059,450 | |||||
Centre County, Pennsylvania Hospital Authority | 1,250,000 | 1,364,187 | ||||||
Chesterfield County, Virginia Economic Development Authority Revenue | 1,030,000 | 1,039,589 | ||||||
Chesterton, Indiana | 1,000,000 | 992,080 | ||||||
Cobb County, Georgia Development Authority | 4,000,000 | 3,529,080 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(American Baptist) 8.00% 8/1/43 | 2,500,000 | 2,837,450 | ||||||
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | 500,000 | 549,285 | ||||||
(School Health Systems) Series A 5.00% 1/1/44 | 1,000,000 | 1,096,250 | ||||||
(Sunny Vista Living Center) | ||||||||
Series A 144A 5.50% 12/1/30 # | 750,000 | 753,810 | ||||||
Series A 144A 5.75% 12/1/35 # | 1,150,000 | 1,163,685 | ||||||
Series A 144A 6.125% 12/1/45 # | 1,200,000 | 1,239,084 | ||||||
Series A 144A 6.25% 12/1/50 # | 560,000 | 585,301 | ||||||
Connecticut State Health & Educational Facility Authority | ||||||||
(Church Home of Hartford Project) | ||||||||
Series A 144A 5.00% 9/1/46 # | 1,000,000 | 952,330 | ||||||
Series A 144A 5.00% 9/1/53 # | 1,500,000 | 1,404,765 | ||||||
Cumberland County, Pennsylvania Municipal Authority Revenue | ||||||||
(Asbury Pennsylvania Obligation Group) 5.25% 1/1/41 | 1,600,000 | 1,618,608 | ||||||
(Diakon Lutheran Ministries Series) 6.375% 1/1/39 | 100,000 | 108,705 | ||||||
Decatur, Texas Hospital Authority | ||||||||
(Wise Regional Health Systems) | ||||||||
Series A 5.00% 9/1/34 | 1,000,000 | 1,029,370 | ||||||
Series A 5.25% 9/1/29 | 500,000 | 525,195 | ||||||
Series A 5.25% 9/1/44 | 2,000,000 | 2,088,840 | ||||||
Duluth, Minnesota Economic Development Authority Revenue | 3,750,000 | 4,041,675 |
41 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
East Rochester, New York Housing Authority Revenue | 1,200,000 | $ | 1,200,756 | |||||
Florida Development Finance | ||||||||
(Tuscan Isle Champions Gate Project) Series A 144A 6.375% 6/1/46 # | 5,500,000 | 5,406,280 | ||||||
(Tuscan Isle Obligated Group) Series A 144A 7.00% 6/1/45 # | 2,000,000 | 2,032,240 | ||||||
(UF Health - Jacksonville Project) Series A 6.00% 2/1/33 | 2,375,000 | 2,627,534 | ||||||
Glendale, Arizona Industrial Development Authority Revenue | ||||||||
(Glencroft Retirement Community Project) | ||||||||
5.00% 11/15/36 | 830,000 | 771,402 | ||||||
5.25% 11/15/51 | 1,350,000 | 1,237,383 | ||||||
Hawaii Pacific Health Special Purpose Revenue | 1,250,000 | 1,343,250 | ||||||
Hawaii State Department of Budget & Finance Special Purpose Senior Living Revenue | ||||||||
(Hawaii Pacific Health Obligation) Series A 5.50% 7/1/43 | 2,990,000 | 3,361,657 | ||||||
(Kahala Nui) 5.25% 11/15/37 | 1,000,000 | 1,061,130 | ||||||
Hospital Facilities Authority of Multnomah County, Oregon | 2,400,000 | 2,531,784 | ||||||
Illinois Finance Authority Revenue | ||||||||
(Admiral at Lake Project) | ||||||||
Series A 7.625% 5/15/25 | 1,750,000 | 1,950,183 | ||||||
Series A 7.75% 5/15/30 | 500,000 | 557,465 | ||||||
Series A 8.00% 5/15/40 | 2,205,000 | 2,460,780 | ||||||
Series A 8.00% 5/15/46 | 1,500,000 | 1,669,740 | ||||||
(Lutheran Home & Services) 5.75% 5/15/46 | 1,685,000 | 1,750,058 | ||||||
Illinois Housing Development Authority | ||||||||
(Stonebridge of Gurnee Project) | ||||||||
Series A 144A 5.45% 1/1/46 # | 2,500,000 | 2,258,600 | ||||||
Series A 144A 5.60% 1/1/56 # | 2,700,000 | 2,419,578 | ||||||
Indiana Finance Authority Revenue | ||||||||
(King’s Daughters Hospital & Health) | ||||||||
5.50% 8/15/40 | 1,000,000 | 1,071,100 | ||||||
5.50% 8/15/45 | 1,000,000 | 1,068,400 | ||||||
(Marquette Project) 5.00% 3/1/39 | 1,250,000 | 1,267,113 | ||||||
Iowa Finance Authority | 2,500,000 | 2,519,900 |
42 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Kentucky Economic Development Finance Authority Healthcare Revenue | ||||||||
(Rosedale Green Project) | ||||||||
5.50% 11/15/35 | 1,310,000 | $ | 1,306,843 | |||||
5.75% 11/15/45 | 2,500,000 | 2,516,775 | ||||||
5.75% 11/15/50 | 1,600,000 | 1,592,752 | ||||||
Kentucky Economic Development Finance Authority Hospital Revenue | 4,965,000 | 5,417,957 | ||||||
Kentwood, Michigan Economic Development Corporation Revenue | 1,250,000 | 1,315,800 | ||||||
Kirkwood, Missouri Industrial Development Authority | 6,000,000 | 6,172,920 | ||||||
Lakeland, Florida | 5,000,000 | 5,390,700 | ||||||
Lancaster County, Pennsylvania Hospital Authority Revenue | 725,000 | 729,865 | ||||||
Lucas County, Ohio Health Care Facilities Revenue | 1,000,000 | 1,099,220 | ||||||
Maine Health & Higher Educational Facilities Authority Revenue | 1,700,000 | 1,845,435 | ||||||
Maricopa County, Arizona Industrial Development Authority | 5,400,000 | 5,006,124 | ||||||
Martin County, Florida Health Facilities Authority Revenue | 1,000,000 | 1,074,460 | ||||||
Maryland Health & Higher Educational Facilities Authority | ||||||||
(Adventist Healthcare) Series A 5.50% 1/1/46 | 5,000,000 | 5,515,050 | ||||||
(Doctors Community Hospital) 5.75% 7/1/38 | 1,730,000 | 1,985,209 | ||||||
Michigan State Strategic Fund Limited Revenue | 2,750,000 | 2,788,417 | ||||||
Missouri State Health & Educational Facilities Authority Revenue | 1,000,000 | 1,098,220 | ||||||
Montgomery County, Pennsylvania Industrial Development Authority Revenue | 1,550,000 | 1,465,184 |
43 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Montgomery County, Pennsylvania Industrial Development Authority Revenue | 6,250,000 | $ | 5,909,625 | |||||
Moon, Pennsylvania Industrial Development Authority | 8,500,000 | 8,727,885 | ||||||
New Hampshire Health & Education Facilities Authority | 1,380,000 | 1,552,859 | ||||||
New Hope, Texas Cultural Education Facilities Finance | ||||||||
(Cardinal Bay - Village on the Park) | ||||||||
Series A1 4.00% 7/1/36 | 635,000 | 636,448 | ||||||
Series A1 5.00% 7/1/46 | 1,395,000 | 1,517,523 | ||||||
Series A1 5.00% 7/1/51 | 1,595,000 | 1,712,759 | ||||||
Series B 4.00% 7/1/31 | 635,000 | 635,959 | ||||||
Series B 4.25% 7/1/36 | 955,000 | 943,779 | ||||||
Series B 4.75% 7/1/51 | 1,915,000 | 1,949,432 | ||||||
Series B 5.00% 7/1/46 | 1,595,000 | 1,663,840 | ||||||
Series C 5.00% 7/1/31 | 250,000 | 252,400 | ||||||
Series C 5.25% 7/1/36 | 350,000 | 357,490 | ||||||
Series C 5.50% 7/1/46 | 1,250,000 | 1,290,450 | ||||||
Series C 5.75% 7/1/51 | 1,000,000 | 1,049,260 | ||||||
Series D 6.00% 7/1/26 | 150,000 | 144,683 | ||||||
Series D 7.00% 7/1/51 | 1,350,000 | 1,291,086 | ||||||
New Jersey Economic Development Authority | 2,000,000 | 2,053,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue | ||||||||
(Barnabas Health Services) Series A 4.00% 7/1/26 | 980,000 | 1,032,969 | ||||||
(Princeton Healthcare System) 5.00% 7/1/39 | 2,500,000 | 2,717,525 | ||||||
(St. Peters University Hospital) 6.25% 7/1/35 | 2,700,000 | 2,885,382 | ||||||
(University Hospital) Series A 5.00% 7/1/46 (AGM) | 5,000,000 | 5,362,400 | ||||||
New York State Dormitory Authority | ||||||||
(Orange Regional Medical Center) | ||||||||
144A 5.00% 12/1/40 # | 1,100,000 | 1,171,874 | ||||||
144A 5.00% 12/1/45 # | 800,000 | 849,960 | ||||||
North Carolina Medical Care Commission Health Care Facilities Revenue | 1,520,000 | 1,585,026 | ||||||
Northampton County, Pennsylvania Industrial Development Authority Revenue | 2,000,000 | 2,028,880 |
44 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Orange County, New York Funding Corporation Assisted Living Residence Revenue | 3,900,000 | $ | 3,778,788 | |||||
Palm Beach County, Florida Health Facilities Authority | ||||||||
(Sinai Residences Boca Raton Project) | ||||||||
7.25% 6/1/34 | 285,000 | 335,072 | ||||||
Series A 7.50% 6/1/49 | 2,920,000 | 3,462,828 | ||||||
Palomar, California Health | 1,670,000 | 1,752,181 | ||||||
Payne County, Oklahoma Economic Development Authority | ||||||||
(Epworth Living at the Ranch) | ||||||||
Series A 6.875% 11/1/46 | 1,750,000 | 1,737,943 | ||||||
Series A 7.00% 11/1/51 | 3,750,000 | 3,736,387 | ||||||
Public Finance Authority, Wisconsin | ||||||||
(Bancroft Neurohealth Project) | ||||||||
Series A 144A 4.625% 6/1/36 # | 235,000 | 206,866 | ||||||
Series A 144A 5.00% 6/1/36 # | 960,000 | 890,429 | ||||||
Series A 144A 5.125% 6/1/48 # | 1,375,000 | 1,262,140 | ||||||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority (Auxilio Mutuo) Series A 6.00% 7/1/33 | 5,630,000 | 5,720,643 | ||||||
Rochester, Minnesota | 2,500,000 | 2,761,000 | ||||||
Salem, Oregon Hospital Facility Authority Revenue | 1,500,000 | 1,616,115 | ||||||
San Buenaventura, California Revenue | 4,475,000 | 5,220,983 | ||||||
South Carolina Jobs - Economic Development Authority Hospital Revenue | 915,000 | 964,620 | ||||||
Southeastern Ohio Port Authority | ||||||||
(Memorial Health Systems) | ||||||||
5.00% 12/1/43 | 805,000 | 812,672 | ||||||
5.50% 12/1/43 | 1,250,000 | 1,333,537 | ||||||
Southwestern Illinois Development Authority Revenue | ||||||||
(Memorial Group) | ||||||||
7.125% 11/1/30 | 1,420,000 | 1,843,018 | ||||||
7.125% 11/1/43 | 2,500,000 | 3,194,275 | ||||||
St. Louis County, Missouri Industrial Development Authority | 600,000 | 593,574 |
45 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
St. Louis County, Missouri Industrial Development Authority | 1,800,000 | $ | 1,734,732 | |||||
Suffolk County, New York Economic Development Corporation Revenue | 575,000 | 623,070 | ||||||
Tarrant County, Texas Cultural Education Facilities Finance | ||||||||
(Baylor Scott & White Health) Series A 5.00% 11/15/45 | 3,790,000 | 4,183,971 | ||||||
(Buckingham Senior Living Community) 5.50% 11/15/45 | 3,000,000 | 3,102,510 | ||||||
(Buckner Retirement Services) | ||||||||
Series B 5.00% 11/15/40 | 2,080,000 | 2,161,182 | ||||||
Series B 5.00% 11/15/46 | 3,000,000 | 3,104,850 | ||||||
Tempe, Arizona Industrial Development Authority Revenue | 500,000 | 528,730 | ||||||
University of Colorado Hospital Authority Revenue | 3,000,000 | 3,399,840 | ||||||
Vermont Economic Development Authority Revenue | 1,100,000 | 1,150,908 | ||||||
Washington State Housing Finance Commission | ||||||||
(Bayview Manor Homes) | ||||||||
Series A 144A 5.00% 7/1/36 # | 700,000 | 707,245 | ||||||
Series A 144A 5.00% 7/1/46 # | 1,450,000 | 1,424,059 | ||||||
Series A 144A 5.00% 7/1/51 # | 2,000,000 | 1,947,060 | ||||||
(Heron’s Key) | ||||||||
Series A 144A 6.75% 7/1/35 # | 820,000 | 821,451 | ||||||
Series A 144A 7.00% 7/1/45 # | 1,750,000 | 1,754,585 | ||||||
Series A 144A 7.00% 7/1/50 # | 2,000,000 | 1,997,680 | ||||||
(Wesley Homes at Lea Hill Project) | ||||||||
Series 2016 144A 5.00% 7/1/46 # | 1,000,000 | 950,530 | ||||||
Series 2016 144A 5.00% 7/1/51 # | 2,000,000 | 1,879,920 | ||||||
Wayzata, Minnesota Senior Housing Revenue | ||||||||
(Folkestone Senior Living Community) | ||||||||
Series A 5.50% 11/1/32 | 270,000 | 284,747 | ||||||
Series A 5.75% 11/1/39 | 600,000 | 630,960 | ||||||
Series A 6.00% 5/1/47 | 920,000 | 971,216 | ||||||
West Virginia Hospital Finance Authority Revenue | 7,800,000 | 7,212,660 | ||||||
Westminster, Maryland | ||||||||
(Lutheran Village Millers Grant) | ||||||||
6.00% 7/1/34 | 800,000 | 855,688 | ||||||
Series A 5.00% 7/1/24 | 1,700,000 | 1,756,848 |
46 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Westminster, Maryland | ||||||||
(Lutheran Village Millers Grant) | ||||||||
Series A 6.125% 7/1/39 | 750,000 | $ | 804,353 | |||||
Series A 6.25% 7/1/44 | 2,500,000 | 2,686,675 | ||||||
Wichita, Kansas | ||||||||
(Kansas Masonic Home) | ||||||||
Series II-A 5.00% 12/1/31 | 500,000 | 499,185 | ||||||
Series II-A 5.25% 12/1/36 | 500,000 | 501,285 | ||||||
Series II-A 5.375% 12/1/46 | 1,200,000 | 1,201,884 | ||||||
Wisconsin Public Finance Authority | 2,000,000 | 2,102,700 | ||||||
|
| |||||||
314,851,274 | ||||||||
|
| |||||||
Housing Revenue Bonds – 0.78% | ||||||||
California Municipal Finance Authority Mobile Home Park Revenue | ||||||||
(Caritas Affordable Housing) Senior Series A 5.25% 8/15/39 | 1,200,000 | 1,320,132 | ||||||
(Caritas Projects) | ||||||||
Senior Series A 5.50% 8/15/47 | 1,500,000 | 1,644,090 | ||||||
Senior Series A 6.40% 8/15/45 | 1,750,000 | 1,905,977 | ||||||
Independent Cities Finance Authority, California | ||||||||
Series A 5.25% 5/15/44 | 750,000 | 818,423 | ||||||
Series A 5.25% 5/15/49 | 3,000,000 | 3,263,820 | ||||||
|
| |||||||
8,952,442 | ||||||||
|
| |||||||
Lease Revenue Bonds – 5.15% | ||||||||
California Municipal Finance Authority Revenue | ||||||||
(Goodwill Industry Sacramento Valley) 5.25% 1/1/45 | 1,295,000 | 1,224,384 | ||||||
(Goodwill Industry Sacramento Valley and Northern Nevada Project) | ||||||||
Series A 144A 6.625% 1/1/32 # | 500,000 | 536,380 | ||||||
Series A 144A 6.875% 1/1/42 # | 1,500,000 | 1,614,150 | ||||||
California Statewide Communities Development Authority Revenue | 1,875,000 | 1,935,317 | ||||||
Capital Trust Agency, Florida Revenue | 850,000 | 897,167 | ||||||
District of Columbia Revenue | 2,235,000 | 2,437,334 | ||||||
Industrial Development Authority of Phoenix, Arizona | ||||||||
5.125% 2/1/34 | 1,000,000 | 944,780 | ||||||
5.375% 2/1/41 | 4,000,000 | 3,828,680 |
47 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Lease Revenue Bonds (continued) | ||||||||
MTA Hudson Rail Yards Trust Obligations, New York | 4,000,000 | $ | 4,313,840 | |||||
New Jersey Economic Development Authority Special Facility Revenue | 5,000,000 | 5,225,550 | ||||||
New York Liberty Development Revenue | ||||||||
(Class 1-3 World Trade Center Project) 144A 5.00% 11/15/44 # | 5,000,000 | 5,241,800 | ||||||
(Class 2-3 World Trade Center Project) 144A 5.375% 11/15/40 # | 2,410,000 | 2,624,418 | ||||||
(Class 3-3 World Trade Center Project) 144A 7.25% 11/15/44 # | 9,600,000 | 11,355,168 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | ||||||||
(AFCO Investors II Portfolio) 5.75% 10/1/31 (AMT) | 3,775,000 | 3,743,517 | ||||||
(Senior Obligation Group) 5.00% 7/1/42 (AMT) | 4,000,000 | 4,074,600 | ||||||
Virginia Public Building Authority | 6,970,000 | 7,856,863 | ||||||
Wise County, Texas | 1,000,000 | 1,154,250 | ||||||
|
| |||||||
59,008,198 | ||||||||
|
| |||||||
Local General Obligation Bonds – 3.68% | ||||||||
Chicago, Illinois | ||||||||
Series 2005D 5.50% 1/1/37 | 2,280,000 | 2,252,709 | ||||||
Series 2005D 5.50% 1/1/40 | 3,000,000 | 2,949,960 | ||||||
Series 2007E 5.50% 1/1/42 | 2,150,000 | 2,112,676 | ||||||
Series 2007F 5.50% 1/1/42 | 1,250,000 | 1,228,300 | ||||||
Series A 5.25% 1/1/29 | 4,415,000 | 4,419,680 | ||||||
Series A 5.50% 1/1/33 | 2,000,000 | 1,993,560 | ||||||
Series A 6.00% 1/1/38 | 6,285,000 | 6,487,063 | ||||||
Series C 5.00% 1/1/26 | 2,105,000 | 2,100,390 | ||||||
Hennepin County, Minnesota | 5,700,000 | 5,886,960 | ||||||
New York City, New York | 3,615,000 | 4,065,031 | ||||||
Raleigh, North Carolina | 5,000,000 | 5,905,400 | ||||||
Ramsey County, Minnesota Capital Improvement Plan | 2,530,000 | 2,809,995 | ||||||
|
| |||||||
42,211,724 | ||||||||
|
|
48 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds – 6.79% | ||||||||
Bexar County, Texas Health Facilities Development | 845,000 | $ | 972,798 | |||||
Brevard County, Florida Health Facilities Authority Revenue | 3,500,000 | 3,932,040 | ||||||
Brooklyn Arena Local Development, New York Pilot Revenue | ||||||||
(Barclays Center Project) | ||||||||
6.25% 7/15/40-20§ | 5,500,000 | 6,295,025 | ||||||
6.50% 7/15/30-20§ | 1,175,000 | 1,353,153 | ||||||
Butler County, Pennsylvania Hospital Authority Revenue | 900,000 | 1,021,626 | ||||||
California Municipal Finance Authority Revenue | 1,000,000 | 1,218,790 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Aspire Public Schools) 6.00% 7/1/40-19§ | 995,000 | 1,084,779 | ||||||
(Inland Regional Center Project) 5.375% 12/1/37-17§ | 6,220,000 | 6,439,752 | ||||||
Central Texas Regional Mobility Authority Revenue | ||||||||
Senior Lien 6.00% 1/1/41-21§ | 1,890,000 | 2,216,346 | ||||||
Subordinate Lien 6.75% 1/1/41-21§ | 1,000,000 | 1,200,230 | ||||||
Cumberland County, Pennsylvania Municipal Authority Revenue | 900,000 | 988,038 | ||||||
Guam Government Obligation Revenue | 310,000 | 346,995 | ||||||
Hawaii State Department of Budget & Finance Special Purpose Senior Living Revenue | 1,000,000 | 1,208,160 | ||||||
Illinois Finance Authority Revenue | ||||||||
(Provena Health) Series A 7.75% 8/15/34-19§ | 1,000,000 | 1,160,968 | ||||||
(Silver Cross & Medical Centers) 7.00% 8/15/44-19§ | 3,570,000 | 4,078,047 | ||||||
Koyukuk, Alaska Revenue | 1,750,000 | 2,039,887 | ||||||
Lancaster Redevelopment Agency, California | 285,000 | 324,888 | ||||||
Louisiana Public Facilities Authority Revenue | 1,705,000 | 2,059,998 | ||||||
Lucas County, Ohio Improvement | 3,865,000 | 4,651,916 |
49 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
Maryland State Economic Development Corporation Student Housing Revenue | 1,130,000 | $ | 1,198,546 | |||||
Massachusetts State Health & Educational Facilities Authority Revenue | 1,000,000 | 1,116,430 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue | ||||||||
(St. Joseph’s Healthcare System) 6.625% 7/1/38-18§ | 860,000 | 925,317 | ||||||
(Trinitas Hospital Obligation Group) Series A 5.25% 7/1/30 | 1,240,000 | 1,254,334 | ||||||
New Jersey State Educational Facilities Authority Revenue | 1,000,000 | 1,142,660 | ||||||
New York State Dormitory Authority Revenue Non State Supported Debt | 5,000,000 | 5,460,750 | ||||||
North Texas Tollway Authority Revenue | 7,000,000 | 7,292,390 | ||||||
Onondaga, New York Civic Development Revenue | ||||||||
(St. Joseph’s Hospital Health Center Project) | ||||||||
4.50% 7/1/32-22§ | 1,000,000 | 1,151,230 | ||||||
5.00% 7/1/17 | 1,945,000 | 1,974,292 | ||||||
5.125% 7/1/31-19§ | 1,000,000 | 1,093,760 | ||||||
Pennsylvania Economic Development Financing Authority Health System Revenue | 980,000 | 1,085,585 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue | ||||||||
(Edinboro University Foundation) 5.80% 7/1/30-20§ | 1,300,000 | 1,492,517 | ||||||
(Edinboro University) 6.00% 7/1/42-18§ | 1,000,000 | 1,068,270 | ||||||
Sacramento County, California Airport System Revenue | 1,000,000 | 1,069,380 | ||||||
San Juan, Texas Higher Education Finance Authority Education Revenue | 2,000,000 | 2,367,040 | ||||||
St. Johns County, Florida Industrial Development Authority Revenue | 1,000,000 | 1,152,270 |
50 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
Travis County, Texas Health Facilities Development Corporation Revenue | 1,000,000 | $ | 1,203,400 | |||||
University of Arizona Medical Center Hospital Revenue | 1,500,000 | 1,788,930 | ||||||
Washington State Health Care Facilities Authority Revenue | 1,250,000 | 1,396,625 | ||||||
|
| |||||||
77,827,162 | ||||||||
|
| |||||||
Resource Recovery Revenue Bonds – 0.59% | ||||||||
Essex County, New Jersey Improvement Authority 144A | 2,500,000 | 2,488,850 | ||||||
Mission, Texas Economic Development Corporation Revenue | 1,000,000 | 1,016,320 | ||||||
Orange County, Florida Industrial Development Authority | 3,500,000 | 3,239,810 | ||||||
|
| |||||||
6,744,980 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 5.99% | ||||||||
Anne Arundel County, Maryland Special Obligation Revenue | 1,725,000 | 1,783,943 | ||||||
Babcock Ranch, Florida Community Independent Special District | ||||||||
5.00% 11/1/31 | 615,000 | 616,845 | ||||||
5.25% 11/1/46 | 500,000 | 496,615 | ||||||
Baltimore, Maryland Convention Center Hotel Revenue Subordinated | 1,000,000 | 1,001,840 | ||||||
Celebration Pointe, Florida Community Development District | 2,000,000 | 1,948,940 | ||||||
Cherry Hill, Virginia Community Development Authority | ||||||||
(Potomac Shores Project) | ||||||||
144A 5.15% 3/1/35 # | 1,000,000 | 1,018,650 | ||||||
144A 5.40% 3/1/45 # | 2,000,000 | 2,054,120 | ||||||
Dutchess County, New York Local Development Corporation Revenue | 1,800,000 | 1,843,722 | ||||||
Farms New Kent, Virginia Community Development | 1,000,000 | 249,880 |
51 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Fountain Urban Renewal Authority, Colorado | 5,000,000 | $ | 5,161,750 | |||||
Glen Cove, New York Local Economic Assistance | 2,000,000 | 1,870,400 | ||||||
Juban Crossing Economic Development District, Louisiana | ||||||||
(General Infrastructure Projects) 144A 7.00% 9/15/44 # | 3,575,000 | 3,582,829 | ||||||
(Road Projects) Series A 144A 7.00% 9/15/44 # | 2,205,000 | 2,209,829 | ||||||
Lancaster Redevelopment Agency, California | 215,000 | 239,065 | ||||||
Midtown Miami, Florida Community Development District | 1,235,000 | 1,269,197 | ||||||
Mobile, Alabama Improvement District | ||||||||
(Mcgowin Park Project) | ||||||||
Series A 5.25% 8/1/30 | 1,000,000 | 1,016,250 | ||||||
Series A 5.50% 8/1/35 | 1,300,000 | 1,311,596 | ||||||
Mosaic District, Virginia Community Development Authority Revenue | 1,500,000 | 1,656,105 | ||||||
Nampa Development Corporation, Idaho Revenue | ||||||||
144A 5.00% 9/1/31 # | 2,940,000 | 3,149,328 | ||||||
5.90% 3/1/30 | 2,000,000 | 2,099,660 | ||||||
New Jersey Transportation Trust Fund Authority | ||||||||
(Transportation Program) | ||||||||
Series AA 5.00% 6/15/44 | 2,000,000 | 2,004,700 | ||||||
Series AA 5.25% 6/15/41 | 1,000,000 | 1,017,410 | ||||||
New York City, New York Industrial Development Agency | ||||||||
(Pilot - Queens Baseball Stadium) 5.00% 1/1/22 (AMBAC) | 1,000,000 | 1,003,470 | ||||||
(Yankee Stadium) 7.00% 3/1/49 (AGC) | 1,000,000 | 1,112,230 | ||||||
New York City, New York Transitional Finance Authority Future Tax Secured Revenue | 1,525,000 | 1,682,441 | ||||||
Norco, California Redevelopment Agency Tax Allocation | 1,000,000 | 1,124,450 | ||||||
Northampton County, Pennsylvania Industrial Development Authority | 2,770,000 | 3,182,730 | ||||||
Public Finance Authority Revenue, Wisconsin (Goodwill Industries of Southern Nevada Project) | 2,500,000 | 2,396,775 |
52 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Public Finance Authority Revenue, Wisconsin | 2,500,000 | $ | 2,386,325 | |||||
Regional Transportation, Colorado District Revenue | 1,000,000 | 1,106,580 | ||||||
Richmond Heights, Missouri Tax Increment & Transaction Sales Tax Revenue Improvement | 1,200,000 | 1,196,076 | ||||||
Southglenn, Colorado Metropolitan District | ||||||||
Series 2016 5.00% 12/1/30 | 1,535,000 | 1,592,501 | ||||||
Series 2016 5.00% 12/1/36 | 810,000 | 819,113 | ||||||
Series 2016 5.00% 12/1/46 | 2,100,000 | 2,102,520 | ||||||
St. Joseph, Missouri Industrial Development Authority Tax Increment Revenue | ||||||||
(Shoppes at North Village Project) | ||||||||
Series A 5.375% 11/1/24 | 1,000,000 | 1,000,470 | ||||||
Series A 5.50% 11/1/27 | 500,000 | 500,180 | ||||||
St. Louis County, Missouri Industrial Development Authority | ||||||||
(Manchester Ballas Community) | ||||||||
Series A 144A 5.00% 9/1/38 # | 1,000,000 | 964,000 | ||||||
Series A 144A 5.25% 9/1/45 # | 3,000,000 | 2,874,360 | ||||||
St. Louis, Missouri Industrial Development Authority Tax Increment Revenue Improvement | 1,200,000 | 1,229,616 | ||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | 5,000,000 | 4,869,350 | ||||||
|
| |||||||
68,745,861 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.21% | ||||||||
California State | 5,000,000 | 5,996,900 | ||||||
Hawaii State | 5,000,000 | 5,634,400 | ||||||
New York State | 2,000,000 | 2,305,100 | ||||||
|
| |||||||
13,936,400 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 8.17% | ||||||||
Chicago, Illinois O’Hare International Airport Revenue | 4,135,000 | 4,595,887 |
53 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Delaware Transportation Authority | 4,105,000 | $ | 4,469,360 | |||||
Foothill-Eastern Transportation Corridor Agency, California | ||||||||
Series A 5.75% 1/15/46 | 5,000,000 | 5,714,250 | ||||||
Series A 6.00% 1/15/49 | 7,690,000 | 8,809,126 | ||||||
Hawaii Airports System Revenue | 3,490,000 | 3,766,094 | ||||||
Houston, Texas Airport System Revenue Subordinate Lien | 1,000,000 | 1,093,610 | ||||||
Kentucky Public Transportation Infrastructure Authority | ||||||||
(1st Tier - Downtown Crossing) | ||||||||
Series A 5.75% 7/1/49 | 3,000,000 | 3,288,240 | ||||||
Series A 6.00% 7/1/53 | 1,290,000 | 1,443,084 | ||||||
Long Beach, California Marina Revenue | 1,000,000 | 1,076,620 | ||||||
Los Angeles, California Department of Airports | 5,000,000 | 5,565,100 | ||||||
Maryland State Economic Development Revenue | 1,400,000 | 1,505,504 | ||||||
Metropolitan New York Transportation Authority | 5,000,000 | 5,666,400 | ||||||
Metropolitan Washington Airports Authority | 3,850,000 | 4,340,375 | ||||||
New York State Thruway Authority Revenue | ||||||||
Series A 5.00% 5/1/19 | 3,265,000 | 3,533,220 | ||||||
(Junior Lien) Series A 5.25% 1/1/56 | 4,000,000 | 4,521,320 | ||||||
Port Authority of New York & New Jersey Special Project | 1,970,000 | 2,217,668 | ||||||
Riverside County, California Transportation Senior Lien | 1,000,000 | 1,121,110 | ||||||
San Francisco, California City & County Airports Commission | ||||||||
Series A 5.50% 5/1/27 (AMT) | 1,915,000 | 2,007,456 | ||||||
(San Francisco International) Series B 5.00% 5/1/46 (AMT) | 5,000,000 | 5,526,150 | ||||||
St. Louis, Missouri Airport Revenue | 1,090,000 | 1,212,712 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | 1,270,000 | 1,343,634 |
54 |
Table of Contents
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | ||||||||
(Blueridge Transportation) | ||||||||
5.00% 12/31/50 (AMT) | 1,910,000 | $ | 2,009,492 | |||||
5.00% 12/31/55 (AMT) | 1,840,000 | 1,932,810 | ||||||
(LBJ Infrastructure) | ||||||||
7.00% 6/30/40 | 7,000,000 | 8,002,960 | ||||||
7.50% 6/30/33 | 500,000 | 579,475 | ||||||
(NTE Mobility) | ||||||||
6.75% 6/30/43 (AMT) | 1,905,000 | 2,196,103 | ||||||
6.875% 12/31/39 | 4,055,000 | 4,588,273 | ||||||
7.00% 12/31/38 (AMT) | 1,335,000 | 1,520,605 | ||||||
|
| |||||||
93,646,638 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 3.44% | ||||||||
Charlotte County, Florida Industrial Development Authority | 500,000 | 470,020 | ||||||
Chicago, Illinois Waterworks Revenue | ||||||||
(2nd Lien) | ||||||||
5.00% 11/1/26 | 180,000 | 205,695 | ||||||
5.00% 11/1/27 | 150,000 | 168,738 | ||||||
5.00% 11/1/28 | 30,000 | 33,257 | ||||||
5.00% 11/1/29 | 1,470,000 | 1,618,073 | ||||||
5.00% 11/1/30 | 1,000,000 | 1,095,910 | ||||||
Dominion, Colorado Water & Sanitation District Revenue | 4,000,000 | 4,005,040 | ||||||
Jefferson County, Alabama Sewer Revenue | ||||||||
(Senior Lien - Warrants) Series A 5.50% 10/1/53 (AGM) | 2,500,000 | 2,834,925 | ||||||
(Sub Lien-Warrants) | ||||||||
Series D 6.50% 10/1/53 | 16,500,000 | 19,346,745 | ||||||
Series D 7.00% 10/1/51 | 5,000,000 | 6,050,650 | ||||||
New York City Water & Sewer System | 3,150,000 | 3,567,533 | ||||||
|
| |||||||
39,396,586 | ||||||||
|
| |||||||
Total Municipal Bonds (cost $1,061,063,373) | 1,104,661,922 | |||||||
|
|
55 |
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund |
Principal amount° | Value (U.S. $) | |||||||
| ||||||||
Short-Term Investments – 3.67% | ||||||||
| ||||||||
Variable Rate Demand Notes – 3.67%¤ | ||||||||
California Infrastructure & Economic Development Bank Revenue | 1,500,000 | $ | 1,500,000 | |||||
California Municipal Finance Authority | 3,700,000 | 3,700,000 | ||||||
Colorado Educational & Cultural Facilities Authority | 1,960,000 | 1,960,000 | ||||||
Minneapolis St. Paul, Minnesota Housing & Redevelopment Authority Health Care Revenue | ||||||||
(Allina Health System) Series B-1 | 5,100,000 | 5,100,000 | ||||||
(Allina Health System) Series B-2 | 3,600,000 | 3,600,000 | ||||||
(Children’s Hospital and Clinics of Minnesota) | 800,000 | 800,000 | ||||||
(Children’s Hospital Clinics) Series A-II | 3,400,000 | 3,400,000 | ||||||
(Health Care Facilities - Children’s Health Care) Series B | 2,450,000 | 2,450,000 | ||||||
Mississippi Business Finance Commission | ||||||||
(Chevron USA Inc. Project) Series A 0.53% 12/1/30 | 800,000 | 800,000 | ||||||
(Chevron USA Inc. Project) Series D 0.53% 11/1/35 | 1,000,000 | 1,000,000 | ||||||
(Chevron USA Inc. Project) Series G 0.53% 11/1/35 | 2,300,000 | 2,300,000 | ||||||
Montgomery County, Pennsylvania Industrial Development Authority | 3,200,000 | 3,200,000 | ||||||
Philadelphia, Pennsylvania Hospitals & Higher Education Facilities Authority Revenue | 700,000 | 700,000 | ||||||
Phoenix, Arizona Industrial Development Authority | 200,000 | 200,000 | ||||||
Virginia College Building Authority | 11,400,000 | 11,400,000 | ||||||
|
| |||||||
Total Short-Term Investments (cost $42,110,000) | 42,110,000 | |||||||
|
| |||||||
Total Value of Securities – 100.01% | $ | 1,146,771,922 | ||||||
|
|
56 |
Table of Contents
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 28, 2017, the aggregate value of Rule 144A securities was $157,177,165, which represents 13.71% of the Fund’s net assets. See Note 6 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 Feb. 28, 2017. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency. |
‡ | Non-income-producing security. Security is currently in default. |
● | Variable rate security. Each rate shown is as of Feb. 28, 2017. Interest rates reset periodically. |
^ | Zero coupon security. The rate shown is the 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 the AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
LOC – Letter of Credit
MTA – Metropolitan Transportation Authority
N.A. – National Association
SGI – Insured by Syncora Guarantee Inc.
SPA – Stand-by Purchase Agreement
TD – Toronto Dominion
See accompanying notes, which are an integral part of the financial statements.
57 |
Table of Contents
Statements of assets and liabilities
February 28, 2017 (Unaudited)
Delaware Tax-Free USA Fund | Delaware Tax-Free USA | Delaware National High-Yield | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments, at value1 | $498,835,008 | $569,492,005 | $1,104,661,922 | |||||||||||||||||||||
Short-term investments, at value2 | 200,000 | 1,400,000 | 42,110,000 | |||||||||||||||||||||
Interest receivable | 5,994,285 | 6,895,864 | 14,488,353 | |||||||||||||||||||||
Receivable for securities sold | 3,611,365 | 10,321 | — | |||||||||||||||||||||
Receivable for fund shares sold | 158,971 | 933,229 | 3,490,744 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total assets | 508,799,629 | 578,731,419 | 1,164,751,019 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Cash overdraft | 15,816 | 18,026 | 284,981 | |||||||||||||||||||||
Payable for fund shares redeemed | 2,558,466 | 464,326 | 1,509,855 | |||||||||||||||||||||
Payable for securities purchased | 1,900,703 | 2,374,480 | 14,572,864 | |||||||||||||||||||||
Income distribution payable | 316,866 | 243,972 | 782,113 | |||||||||||||||||||||
Investment management fees payable to affiliates | 156,635 | 169,870 | 358,496 | |||||||||||||||||||||
Other accrued expenses | 149,566 | 224,605 | 457,082 | |||||||||||||||||||||
Distribution fees payable to affiliates | 103,555 | 53,365 | 114,188 | |||||||||||||||||||||
Audit and tax fees payable | 21,792 | 21,792 | 21,792 | |||||||||||||||||||||
Dividend disbursing and transfer agent fees and expense payable to affiliates | 7,710 | 8,757 | 17,197 | |||||||||||||||||||||
Trustees’ fees and expenses payable | 4,165 | 4,743 | 9,087 | |||||||||||||||||||||
Accounting and administration expenses payable to affiliates | 1,795 | 2,039 | 4,004 | |||||||||||||||||||||
Legal fees payable to affiliates | 1,159 | 1,309 | 2,526 | |||||||||||||||||||||
Reports and statements to shareholders expenses payable to affiliates | 124 | 142 | 299 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total liabilities | 5,238,352 | 3,587,426 | 18,134,484 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Net Assets | $503,561,277 | $575,143,993 | $1,146,616,535 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid-in capital | $473,724,296 | $555,596,495 | $1,122,862,109 | |||||||||||||||||||||
Undistributed net investment income | 92,004 | 39,528 | 113,404 | |||||||||||||||||||||
Accumulated net realized loss on investments | (3,795,755 | ) | (3,801,765 | ) | (19,957,527 | ) | ||||||||||||||||||
Net unrealized appreciation of investments | 33,540,732 | 23,309,735 | 43,598,549 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Net Assets | $503,561,277 | $575,143,993 | $1,146,616,535 | |||||||||||||||||||||
|
|
|
|
|
|
58
Table of Contents
Delaware Tax-Free USA Fund | Delaware Tax-Free USA | Delaware National High-Yield | |||||||||||||||||||||||
Net Asset Value | |||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||
Net assets | $ | 426,179,869 | $ | 163,996,209 | $ | 185,214,526 | |||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 37,010,939 | 13,866,261 | 17,195,767 | ||||||||||||||||||||||
Net asset value per share | $ | 11.51 | $ | 11.83 | $ | 10.77 | |||||||||||||||||||
Sales charge | 4.50 | % | 2.75 | % | 4.50 | % | |||||||||||||||||||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ | 12.05 | $ | 12.16 | $ | 11.28 | |||||||||||||||||||
Class C: | |||||||||||||||||||||||||
Net assets | $ | 29,290,773 | $ | 44,974,944 | $ | 100,535,845 | |||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 2,543,249 | 3,804,723 | 9,296,157 | ||||||||||||||||||||||
Net asset value per share | $ | 11.52 | $ | 11.82 | $ | 10.81 | |||||||||||||||||||
Institutional Class: | |||||||||||||||||||||||||
Net assets | $ | 48,090,635 | $ | 366,172,840 | $ | 860,866,164 | |||||||||||||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 4,145,369 | 30,664,223 | 79,192,249 | ||||||||||||||||||||||
Net asset value per share | $ | 11.60 | $ | 11.94 | $ | 10.87 | |||||||||||||||||||
1Investments, at cost | $ | 465,294,276 | $ | 546,182,270 | $ | 1,061,063,373 | |||||||||||||||||||
2Short-term investments, at cost | 200,000 | 1,400,000 | 42,110,000 |
See accompanying notes, which are an integral part of the financial statements.
59
Table of Contents
Six months ended February 28, 2017 (Unaudited)
Delaware Tax-Free USA Fund | Delaware Tax-Free USA | Delaware National High-Yield Municipal Bond Fund | ||||||||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||||||
Interest | $ | 11,612,023 | $ | 11,699,991 | $ 27,691,167 | |||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Management fees | 1,440,850 | 1,607,504 | 2,990,769 | |||||||||||||||||||||||||||
Distribution expenses – Class A | 555,486 | 216,082 | 277,179 | |||||||||||||||||||||||||||
Distribution expenses – Class C | 150,774 | 231,527 | 523,200 | |||||||||||||||||||||||||||
Dividend disbursing and transfer agent fees and expenses | 210,577 | 347,446 | 583,267 | |||||||||||||||||||||||||||
Accounting and administration expenses | 82,241 | 101,635 | 181,732 | |||||||||||||||||||||||||||
Registration fees | 32,954 | 35,945 | 60,336 | |||||||||||||||||||||||||||
Legal fees | 22,695 | 29,425 | 57,176 | |||||||||||||||||||||||||||
Reports and statements to shareholders expenses | 22,171 | 37,608 | 48,511 | |||||||||||||||||||||||||||
Audit and tax fees | 21,792 | 21,792 | 21,792 | |||||||||||||||||||||||||||
Trustees’ fees and expenses | 13,959 | 17,091 | 30,736 | |||||||||||||||||||||||||||
Custodian fees | 11,176 | 14,357 | 25,586 | |||||||||||||||||||||||||||
Other | 18,323 | 23,012 | 39,395 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
2,582,998 | 2,683,424 | 4,839,679 | ||||||||||||||||||||||||||||
Less expenses waived | (400,093 | ) | (278,871 | ) | (542,852 | ) | ||||||||||||||||||||||||
Less waived distribution expenses – Class A | — | (86,433 | ) | — | ||||||||||||||||||||||||||
Less expense paid indirectly | (193 | ) | (104 | ) | (191 | ) | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total operating expenses | 2,182,712 | 2,318,016 | 4,296,636 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Investment Income | 9,429,311 | 9,381,975 | 23,394,531 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Realized and Unrealized Loss: | ||||||||||||||||||||||||||||||
Net realized loss on investments | (2,832,466 | ) | (2,541,349 | ) | (4,439,286 | ) | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (24,372,213 | ) | (29,874,162 | ) | (69,053,227 | ) | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Realized and Unrealized Loss | (27,204,679 | ) | (32,415,511 | ) | (73,492,513 | ) | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (17,775,368 | ) | $ | (23,033,536 | ) | $(50,097,982 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
60
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This page intentionally left blank.
Table of Contents
Statements of changes in net assets
Delaware Tax-Free USA Fund
Six months ended 2/28/17 (Unaudited) | Year ended 8/31/16 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 9,429,311 | $ | 19,802,855 | ||||
Net realized gain (loss) | (2,832,466 | ) | 7,412,248 | |||||
Net change in unrealized appreciation (depreciation) | (24,372,213 | ) | 11,011,063 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (17,775,368 | ) | 38,226,166 | |||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income: | ||||||||
Class A | (8,122,915 | ) | (17,504,374 | ) | ||||
Class C | (427,549 | ) | (858,163 | ) | ||||
Institutional Class | (853,739 | ) | (1,431,583 | ) | ||||
Net realized gain: | ||||||||
Class A | (4,669,336 | ) | — | |||||
Class C | (314,280 | ) | — | |||||
Institutional Class | (455,369 | ) | — | |||||
|
|
|
| |||||
(14,843,188 | ) | (19,794,120 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 15,796,937 | 18,556,280 | ||||||
Class C | 2,856,816 | 4,181,538 | ||||||
Institutional Class | 15,995,173 | 20,247,575 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 11,248,688 | 15,102,308 | ||||||
Class C | 644,292 | 721,186 | ||||||
Institutional Class | 1,029,150 | 1,086,711 | ||||||
|
|
|
| |||||
47,571,056 | 59,895,598 | |||||||
|
|
|
|
62
Table of Contents
Six months ended 2/28/17 (Unaudited) | Year ended 8/31/16 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (66,208,809 | ) | $ | (60,655,312 | ) | ||
Class C | (3,900,772 | ) | (5,219,246 | ) | ||||
Institutional Class | (11,930,221 | ) | (10,182,828 | ) | ||||
|
|
|
| |||||
(82,039,802 | ) | (76,057,386 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (34,468,746 | ) | (16,161,788 | ) | ||||
|
|
|
| |||||
Net Increase (Decrease) in Net Assets | (67,087,302 | ) | 2,270,258 | |||||
Net Assets: | ||||||||
Beginning of period | 570,648,579 | 568,378,321 | ||||||
|
|
|
| |||||
End of period | $ | 503,561,277 | $ | 570,648,579 | ||||
|
|
|
| |||||
Undistributed net investment income | $ | 92,004 | $ | 66,896 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
63
Table of Contents
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
Six months | ||||||||
ended | ||||||||
2/28/17 | Year ended | |||||||
(Unaudited) | 8/31/16 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 9,381,975 | $ | 20,652,060 | ||||
Net realized gain (loss) | (2,541,349 | ) | 6,205,347 | |||||
Net change in unrealized appreciation (depreciation) | (29,874,162 | ) | 13,384,099 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (23,033,536 | ) | 40,241,506 | |||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income: | ||||||||
Class A | (2,444,693 | ) | (5,362,533 | ) | ||||
Class C | (458,690 | ) | (980,428 | ) | ||||
Institutional Class | (6,414,886 | ) | (14,367,442 | ) | ||||
Net realized gain: | ||||||||
Class A | (58,508 | ) | — | |||||
Class C | (15,746 | ) | — | |||||
Institutional Class | (152,523 | ) | — | |||||
|
|
|
| |||||
(9,545,046 | ) | (20,710,403 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 23,400,455 | 42,587,074 | ||||||
Class C | 2,542,761 | 5,664,853 | ||||||
Institutional Class | 95,719,678 | 146,784,446 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 2,352,461 | 5,001,787 | ||||||
Class C | 435,501 | 893,576 | ||||||
Institutional Class | 4,247,163 | 9,003,563 | ||||||
|
|
|
| |||||
128,698,019 | 209,935,299 | |||||||
|
|
|
|
64
Table of Contents
Six months ended 2/28/17 (Unaudited) | Year ended 8/31/16 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (41,395,919 | ) | $ | (49,232,611 | ) | ||
Class C | (5,320,662 | ) | (6,715,315 | ) | ||||
Institutional Class | (190,980,091 | ) | (163,901,252 | ) | ||||
|
|
|
| |||||
(237,696,672 | ) | (219,849,178 | ) | |||||
|
|
|
| |||||
Decrease in net assets derived from capital share transactions | (108,998,653 | ) | (9,913,879 | ) | ||||
|
|
|
| |||||
Net Increase (Decrease) in Net Assets | (141,577,235 | ) | 9,617,224 | |||||
Net Assets: | ||||||||
Beginning of period | 716,721,228 | 707,104,004 | ||||||
|
|
|
| |||||
End of period | $ | 575,143,993 | $ | 716,721,228 | ||||
|
|
|
| |||||
Undistributed (distributions in excess of) net investment income | $ | 39,528 | $ | (24,178 | ) | |||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
65
Table of Contents
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
Six months | ||||||||
ended | ||||||||
2/28/17 | Year ended | |||||||
(Unaudited) | 8/31/16 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 23,394,531 | $ | 42,639,732 | ||||
Net realized loss | (4,439,286 | ) | (132,180 | ) | ||||
Net change in unrealized appreciation (depreciation) | (69,053,227 | ) | 67,701,215 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (50,097,982 | ) | 110,208,767 | |||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income: | ||||||||
Class A | (4,296,074 | ) | (8,838,898 | ) | ||||
Class C | (1,639,244 | ) | (3,074,474 | ) | ||||
Institutional Class | (17,341,707 | ) | (30,594,298 | ) | ||||
|
|
|
| |||||
(23,277,025 | ) | (42,507,670 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 21,856,756 | 71,930,474 | ||||||
Class C | 9,154,917 | 30,273,869 | ||||||
Institutional Class | 236,364,287 | 324,718,812 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 3,637,322 | 7,021,837 | ||||||
Class C | 1,444,973 | 2,654,379 | ||||||
Institutional Class | 14,962,900 | 26,610,128 | ||||||
|
|
|
| |||||
287,421,155 | 463,209,499 | |||||||
|
|
|
|
66
Table of Contents
Six months | ||||||||
ended | ||||||||
2/28/17 | Year ended | |||||||
(Unaudited) | 8/31/16 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (76,599,052 | ) | $ | (69,509,287 | ) | ||
Class C | (17,453,111 | ) | (16,512,385 | ) | ||||
Institutional Class | (243,528,599 | ) | (142,479,009 | ) | ||||
|
|
|
| |||||
(337,580,762 | ) | (228,500,681 | ) | |||||
|
|
|
| |||||
Increase (decrease) in net assets derived from capital share transactions | (50,159,607 | ) | 234,708,818 | |||||
|
|
|
| |||||
Net Increase (Decrease) in Net Assets | (123,534,614 | ) | 302,409,915 | |||||
Net Assets: | ||||||||
Beginning of period | 1,270,151,149 | 967,741,234 | ||||||
|
|
|
| |||||
End of period | $ | 1,146,616,535 | $ | 1,270,151,149 | ||||
|
|
|
| |||||
Undistributed (distributions in excess of) net investment income | $ | 113,404 | $ | (4,102 | ) | |||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
67
Table of Contents
Delaware Tax-Free USA 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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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. |
See accompanying notes, which are an integral part of the financial statements.
68
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||
2/28/171 | �� | Year ended | ||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$ 12.220 | $ | 11.830 | $ | 11.900 | $ | 11.140 | $ | 12.260 | $ | 11.300 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.209 | 0.424 | 0.434 | 0.445 | 0.456 | 0.484 | |||||||||||||||||||||||||
(0.591 | ) | 0.390 | (0.070 | ) | 0.760 | (1.039 | ) | 0.959 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.382 | ) | 0.814 | 0.364 | 1.205 | (0.583 | ) | 1.443 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.208 | ) | (0.424 | ) | (0.434 | ) | (0.445 | ) | (0.457 | ) | (0.483 | ) | |||||||||||||||||||
(0.120 | ) | — | — | — | (0.080 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.328 | ) | (0.424 | ) | (0.434 | ) | (0.445 | ) | (0.537 | ) | (0.483 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ 11.510 | $ | 12.220 | $ | 11.830 | $ | 11.900 | $ | 11.140 | $ | 12.260 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.10% | ) | 7.00% | 3.09% | 11.02% | (5.02% | ) | 13.01% | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$426,180 | $ | 493,408 | $ | 504,204 | $ | 500,590 | $ | 519,986 | $ | 604,415 | ||||||||||||||||||||
0.81% | 0.81% | 0.81% | 0.80% | 0.80% | 0.80% | |||||||||||||||||||||||||
0.96% | 0.95% | 0.96% | 0.97% | 0.99% | 0.93% | |||||||||||||||||||||||||
3.60% | 3.52% | 3.63% | 3.88% | 3.76% | 4.11% | |||||||||||||||||||||||||
3.45% | 3.38% | 3.48% | 3.71% | 3.57% | 3.98% | |||||||||||||||||||||||||
| 18%
|
|
| 33%
|
|
| 16%
|
|
| 34%
|
|
| 40%
|
|
| 52%
|
|
69
Table of Contents
Financial highlights
Delaware Tax-Free USA 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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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.
70
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$12.220 | $ | 11.830 | $ | 11.910 | $ | 11.140 | $ | 12.270 | $ | 11.300 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.166 | 0.333 | 0.344 | 0.359 | 0.364 | 0.395 | |||||||||||||||||||||||||
(0.581 | ) | 0.390 | (0.080 | ) | 0.770 | (1.048 | ) | 0.969 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.415 | ) | 0.723 | 0.264 | 1.129 | (0.684 | ) | 1.364 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.165 | ) | (0.333 | ) | (0.344 | ) | (0.359 | ) | (0.366 | ) | (0.394 | ) | |||||||||||||||||||
(0.120 | ) | — | — | — | (0.080 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.285 | ) | (0.333 | ) | (0.344 | ) | (0.359 | ) | (0.446 | ) | (0.394 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$11.520 | $ | 12.220 | $ | 11.830 | $ | 11.910 | $ | 11.140 | $ | 12.270 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.38% | ) | 6.19% | 2.23% | 10.28% | (5.82% | ) | 12.26% | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$29,291 | $ | 31,545 | $ | 30,851 | $ | 29,524 | $ | 33,509 | $ | 36,840 | ||||||||||||||||||||
1.56% | 1.56% | 1.57% | 1.56% | 1.56% | 1.56% | |||||||||||||||||||||||||
1.71% | 1.70% | 1.72% | 1.72% | 1.70% | 1.69% | |||||||||||||||||||||||||
2.85% | 2.77% | 2.88% | 3.12% | 3.00% | 3.35% | |||||||||||||||||||||||||
2.70% | 2.63% | 2.73% | 2.96% | 2.86% | 3.22% | |||||||||||||||||||||||||
| 18%
|
|
| 33%
|
|
| 16%
|
|
| 34%
|
|
| 40%
|
|
| 52%
|
|
71
Table of Contents
Financial highlights
Delaware Tax-Free USA 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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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.
72
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$12.310 | $ | 11.910 | $ | 11.990 | $ | 11.220 | $ | 12.360 | $ | 11.380 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.225 | 0.456 | 0.466 | 0.477 | 0.490 | 0.517 | |||||||||||||||||||||||||
(0.591 | ) | 0.400 | (0.080 | ) | 0.770 | (1.060 | ) | 0.979 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.366 | ) | 0.856 | 0.386 | 1.247 | (0.570 | ) | 1.496 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.224 | ) | (0.456 | ) | (0.466 | ) | (0.477 | ) | (0.490 | ) | (0.516 | ) | |||||||||||||||||||
(0.120 | ) | — | — | — | (0.080 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.344 | ) | (0.456 | ) | (0.466 | ) | (0.477 | ) | (0.570 | ) | (0.516 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$11.600 | $ | 12.310 | $ | 11.910 | $ | 11.990 | $ | 11.220 | $ | 12.360 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(2.95% | ) | 7.32% | 3.26% | 11.33% | (4.89% | ) | 13.41% | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$48,090 | $ | 45,696 | $ | 33,323 | $ | 24,588 | $ | 17,008 | $ | 18,187 | ||||||||||||||||||||
0.56% | 0.56% | 0.57% | 0.56% | 0.56% | 0.56% | |||||||||||||||||||||||||
0.71% | 0.70% | 0.72% | 0.72% | 0.70% | 0.69% | |||||||||||||||||||||||||
3.85% | 3.77% | 3.88% | 4.12% | 4.00% | 4.35% | |||||||||||||||||||||||||
3.70% | 3.63% | 3.73% | 3.96% | 3.86% | 4.22% | |||||||||||||||||||||||||
| 18%
|
|
| 33%
|
|
| 16%
|
|
| 34%
|
|
| 40%
|
|
| 52%
|
|
73
Table of Contents
Financial highlights
Delaware Tax-Free USA Intermediate 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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment return during all of the periods shown reflects waivers by the manager and 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 | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$ 12.380 | $ | 12.040 | $ | 12.210 | $ | 11.690 | $ | 12.410 | $ | 11.850 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.170 | 0.348 | 0.346 | 0.342 | 0.344 | 0.362 | |||||||||||||||||||||||||
(0.547 | ) | 0.341 | (0.170 | ) | 0.520 | (0.720 | ) | 0.560 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.377 | ) | 0.689 | 0.176 | 0.862 | (0.376 | ) | 0.922 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.169 | ) | (0.349 | ) | (0.346 | ) | (0.342 | ) | (0.344 | ) | (0.362 | ) | |||||||||||||||||||
(0.004 | ) | — | — | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.173 | ) | (0.349 | ) | (0.346 | ) | (0.342 | ) | (0.344 | ) | (0.362 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ 11.830 | $ | 12.380 | $ | 12.040 | $ | 12.210 | $ | 11.690 | $ | 12.410 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.05% | ) | 5.79% | 1.46% | 7.47% | (3.13%) | 7.89% | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$163,996 | $ | 188,034 | $ | 184,514 | $ | 249,848 | $ | 391,923 | $ | 464,540 | ||||||||||||||||||||
0.75% | 0.75% | 0.76% | 0.75% | 0.75% | 0.75% | |||||||||||||||||||||||||
0.94% | 0.92% | 0.93% | 0.93% | 0.97% | 0.97% | |||||||||||||||||||||||||
2.84% | 2.84% | 2.85% | 2.86% | 2.79% | 2.98% | |||||||||||||||||||||||||
2.65% | 2.67% | 2.68% | 2.68% | 2.57% | 2.76% | |||||||||||||||||||||||||
| 15%
|
|
| 35%
|
|
| 19%
|
|
| 34%
|
|
| 23%
|
|
| 39%
|
|
75
Table of Contents
Financial highlights
Delaware Tax-Free USA Intermediate 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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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 | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$12.370 | $ | 12.030 | $ | 12.200 | $ | 11.690 | $ | 12.400 | $ | 11.850 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.119 | 0.244 | 0.243 | 0.240 | 0.239 | 0.258 | |||||||||||||||||||||||||
(0.547 | ) | 0.341 | (0.170 | ) | 0.510 | (0.710 | ) | 0.550 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.428 | ) | 0.585 | 0.073 | 0.750 | (0.471 | ) | 0.808 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.118 | ) | (0.245 | ) | (0.243 | ) | (0.240 | ) | (0.239 | ) | (0.258 | ) | |||||||||||||||||||
(0.004 | ) | — | — | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.122 | ) | (0.245 | ) | (0.243 | ) | (0.240 | ) | (0.239 | ) | (0.258 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$11.820 | $ | 12.370 | $ | 12.030 | $ | 12.200 | $ | 11.690 | $ | 12.400 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.46% | ) | 4.90% | 0.60% | 6.48% | (3.87%) | 6.89% | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$44,975 | $ | 49,515 | $ | 48,328 | $ | 54,231 | $ | 64,904 | $ | 75,887 | ||||||||||||||||||||
1.60% | 1.60% | 1.61% | 1.60% | 1.60% | 1.60% | |||||||||||||||||||||||||
1.69% | 1.67% | 1.68% | 1.68% | 1.67% | 1.67% | |||||||||||||||||||||||||
1.99% | 1.99% | 2.00% | 2.01% | 1.94% | 2.13% | |||||||||||||||||||||||||
1.90% | 1.92% | 1.93% | 1.93% | 1.87% | 2.06% | |||||||||||||||||||||||||
| 15%
|
|
| 35%
|
|
| 19%
|
|
| 34%
|
|
| 23%
|
|
| 39%
|
|
77
Table of Contents
Financial highlights
Delaware Tax-Free USA Intermediate 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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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 | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$ 12.500 | $ | 12.160 | $ | 12.330 | $ | 11.810 | $ | 12.530 | $ | 11.970 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.180 | 0.369 | 0.368 | 0.363 | 0.366 | 0.384 | |||||||||||||||||||||||||
(0.557 | ) | 0.341 | (0.170 | ) | 0.520 | (0.720 | ) | 0.560 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.377 | ) | 0.710 | 0.198 | 0.883 | (0.354 | ) | 0.944 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.179 | ) | (0.370 | ) | (0.368 | ) | (0.363 | ) | (0.366 | ) | (0.384 | ) | |||||||||||||||||||
(0.004 | ) | — | — | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.183 | ) | (0.370 | ) | (0.368 | ) | (0.363 | ) | (0.366 | ) | (0.384 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ 11.940 | $ | 12.500 | $ | 12.160 | $ | 12.330 | $ | 11.810 | $ | 12.530 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.01% | ) | 5.92% | 1.62% | 7.58% | (2.92%) | 8.00% | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$366,173 | $ | 479,172 | $ | 474,262 | $ | 434,455 | $ | 359,213 | $ | 333,033 | ||||||||||||||||||||
0.60% | 0.60% | 0.61% | 0.60% | 0.60% | 0.60% | |||||||||||||||||||||||||
0.69% | 0.67% | 0.68% | 0.68% | 0.67% | 0.67% | |||||||||||||||||||||||||
2.99% | 2.99% | 3.00% | 3.01% | 2.94% | 3.13% | |||||||||||||||||||||||||
2.90% | 2.92% | 2.93% | 2.93% | 2.87% | 3.06% | |||||||||||||||||||||||||
| 15%
|
|
| 35%
|
|
| 19%
|
|
| 34%
|
|
| 23%
|
|
| 39%
|
|
79
Table of Contents
Financial highlights
Delaware National High-Yield Municipal Bond 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 |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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 | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$ 11.420 | $ | 10.750 | $ | 10.650 | $ | 9.640 | $ | 10.750 | $ | 9.620 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.211 | 0.413 | 0.413 | 0.447 | 0.449 | 0.496 | |||||||||||||||||||||||||
(0.651 | ) | 0.669 | 0.097 | 1.008 | (1.110 | ) | 1.127 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.440 | ) | 1.082 | 0.510 | 1.455 | (0.661 | ) | 1.623 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.210 | ) | (0.412 | ) | (0.410 | ) | (0.445 | ) | (0.449 | ) | (0.493 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.210 | ) | (0.412 | ) | (0.410 | ) | (0.445 | ) | (0.449 | ) | (0.493 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ 10.770 | $ | 11.420 | $ | 10.750 | $ | 10.650 | $ | 9.640 | $ | 10.750 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.84% | ) | 10.25% | 4.83% | 15.42% | (6.47%) | 17.28% | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$185,215 | $ | 250,810 | $ | 227,090 | $ | 204,936 | $ | 200,988 | $ | 228,829 | ||||||||||||||||||||
0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||||||||||||||||||||||||
0.94% | 0.94% | 0.97% | 0.99% | 0.99% | 0.99% | |||||||||||||||||||||||||
3.91% | 3.73% | 3.80% | 4.38% | 4.18% | 4.83% | |||||||||||||||||||||||||
3.82% | 3.64% | 3.68% | 4.24% | 4.04% | 4.69% | |||||||||||||||||||||||||
| 14%
|
|
| 13%
|
|
| 10%
|
|
| 31%
|
|
| 46%
|
|
| 34%
|
|
81
Table of Contents
Financial highlights
Delaware National High-Yield Municipal Bond 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 |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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 | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$ 11.470 | $ | 10.800 | $ | 10.700 | $ | 9.680 | $ | 10.800 | $ | 9.660 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.171 | 0.332 | 0.333 | 0.373 | 0.370 | 0.422 | |||||||||||||||||||||||||
(0.661 | ) | 0.669 | 0.097 | 1.018 | (1.120 | ) | 1.137 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.490 | ) | 1.001 | 0.430 | 1.391 | (0.750 | ) | 1.559 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.170 | ) | (0.331 | ) | (0.330 | ) | (0.371 | ) | (0.370 | ) | (0.419 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.170 | ) | (0.331 | ) | (0.330 | ) | (0.371 | ) | (0.370 | ) | (0.419 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ 10.810 | $ | 11.470 | $ | 10.800 | $ | 10.700 | $ | 9.680 | $ | 10.800 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(4.27% | ) | 9.41% | 4.04% | 14.63% | (7.21%) | 16.47% | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$100,536 | $ | 113,905 | $ | 91,196 | $ | 71,424 | $ | 69,889 | $ | 69,634 | ||||||||||||||||||||
1.60% | 1.60% | 1.60% | 1.60% | 1.60% | 1.60% | |||||||||||||||||||||||||
1.69% | 1.69% | 1.72% | 1.74% | 1.74% | 1.74% | |||||||||||||||||||||||||
3.16% | 2.98% | 3.05% | 3.63% | 3.43% | 4.08% | |||||||||||||||||||||||||
3.07% | 2.89% | 2.93% | 3.49% | 3.29% | 3.94% | |||||||||||||||||||||||||
| 14%
|
|
| 13%
|
|
| 10%
|
|
| 31%
|
|
| 46%
|
|
| 34%
|
|
83
Table of Contents
Financial highlights
Delaware National High-Yield Municipal Bond 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 |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | 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 investment 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 investment 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 | ||||||||||||||||||||||||||||||
2/28/171 | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
(Unaudited) | 8/31/16 | 8/31/15 | 8/31/14 | 8/31/13 | 8/31/12 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$ 11.530 | $ | 10.850 | $ | 10.750 | $ | 9.730 | $ | 10.850 | $ | 9.710 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
0.227 | 0.445 | 0.443 | 0.476 | 0.480 | 0.527 | |||||||||||||||||||||||||
(0.661 | ) | 0.679 | 0.097 | 1.018 | (1.120 | ) | 1.137 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.434 | ) | 1.124 | 0.540 | 1.494 | (0.640 | ) | 1.664 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| ||||||||||||||||||||||||||||||
(0.226 | ) | (0.444 | ) | (0.440 | ) | (0.474 | ) | (0.480 | ) | (0.524 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.226 | ) | (0.444 | ) | (0.440 | ) | (0.474 | ) | (0.480 | ) | (0.524 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ 10.870 | $ | 11.530 | $ | 10.850 | $ | 10.750 | $ | 9.730 | $ | 10.850 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3.76% | ) | 10.57% | 5.08% | 15.71% | (6.23%) | 17.57% | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
$860,866 | $ | 905,436 | $ | 649,455 | $ | 384,525 | $ | 165,162 | $ | 125,661 | ||||||||||||||||||||
0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |||||||||||||||||||||||||
0.69% | 0.69% | 0.72% | 0.74% | 0.74% | 0.74% | |||||||||||||||||||||||||
4.16% | 3.98% | 4.05% | 4.63% | 4.43% | 5.08% | |||||||||||||||||||||||||
4.07% | 3.89% | 3.93% | 4.49% | 4.29% | 4.94% | |||||||||||||||||||||||||
| 14%
|
|
| 13%
|
|
| 10%
|
|
| 31%
|
|
| 46%
|
|
| 34%
|
|
85
Table of Contents
Delaware Investments® National Tax-Free Funds | February 28, 2017 (Unaudited) |
Delaware Group® Tax-Free Fund is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, and Delaware Tax-Free New York Fund.
Delaware Group Tax-Free Fund and Voyageur Mutual Funds are individually referred to as a Trust and collectively as the Trusts. These financial statements and the related notes pertain to Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund (each referred to as a Fund, or collectively, as the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and 2.75% for Delaware Tax-Free USA Intermediate 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% if redeemed during the first year and 0.50% during the second year for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and 0.75% for Delaware Tax-Free USA Intermediate Fund if redeemed within 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%, if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
The investment objective of Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund is to seek as high a level of current interest income exempt from federal income taxes as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.
The investment objective of Delaware National High-Yield Municipal Bond Fund is to seek a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.
1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Funds.
Security Valuation – Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.
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Table of Contents
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 for all open federal income tax years (Aug. 31, 2013–Aug. 31, 2016), and has concluded that no provision for federal income tax is required in each Fund’s financial statements.
Class Accounting – Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates – Each Fund is an investment company, whose financial statements are prepared in conformity with U.S. GAAP. Therefore, each Fund follows the accounting and reporting guidelines for investment companies. The preparation of financial statements in conformity with U.S. 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 Investments® Family of Funds are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
Each Fund may receive earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. There were no such earnings credits for the six months ended Feb. 28, 2017.
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 $1.00, the expense paid under this arrangement is included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expense offset shown under “Less
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Table of Contents
Notes to financial statements
Delaware Investments® National Tax-Free Funds
1. Significant Accounting Policies (continued)
expense paid indirectly.” For the six months ended Feb. 28, 2017, each Fund earned the following amounts under this agreement:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||
$193 | $104 | $191 |
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 Delaware Management Business Trust and the investment manager, an annual fee which is calculated based on each Fund’s average daily net assets as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||
On the first $500 million | 0.550% | 0.500% | 0.550% | |||
On the next $500 million | 0.500% | 0.475% | 0.500% | |||
On the next $1.5 billion | 0.450% | 0.450% | 0.450% | |||
In excess of $2.5 billion | 0.425% | 0.425% | 0.425% |
DMC has contractually agreed to waive that portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) do not exceed 0.56%, 0.60%, and 0.60% of average daily net assets of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund, respectively, from Sept. 1, 2016 through Feb. 28, 2017.* 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 Boards and DMC. These expense waivers and reimbursements apply only to expenses paid directly by each Fund and may only be terminated by agreement of DMC and each Fund.
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, DIFSC’s fees are calculated based on the aggregate daily net assets of the Delaware Investments® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DIFSC under the service agreement described above are allocated among all funds in the Delaware Investments Family of Funds 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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Table of Contents
For the six months ended Feb. 28, 2017, each Fund was charged for these services as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||
$12,338 | $15,245 | $27,264 |
DIFSC is also the transfer agent and dividend disbursing agent of each Fund. For these services, DIFSC’s fees are calculated based on the aggregate daily net assets of the retail funds within the Delaware Investments® Family of Funds at the following annual rate: 0.025% of the first $20 billion; 0.020% of the next $5 billion; 0.015% of the next $5 billion; and 0.013% on average daily net assets in excess of $30 billion. The fees payable to DIFSC under the service agreement described above are allocated among all retail funds in the Delaware Investments Family of 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 Feb. 28, 2017, each Fund was charged for these services as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||
$52,980 | $65,464 | $117,070 |
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.”
Pursuant to a distribution agreement and distribution plan, Delaware National High-Yield Municipal Bond 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. The Board for Delaware Tax-Free USA Fund has adopted a formula for calculating 12b-1 fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (1) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (2) 0.25% of average daily net assets representing shares that were acquired on or after June 1, 1992. All of the Fund’s Class A shareholders bear 12b-1 fees at the same rate, the blended rate, currently 0.25% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. The Class A shares of Delaware Tax-Free USA Intermediate Fund were subject to a 12b-1 fee of 0.25% of average daily net assets, which was contractually waived to 0.15% of average daily net assets from Sept. 1, 2016 through Feb. 28, 2017.* Each Fund pays 1.00% of the average daily net assets of the Class C shares. Institutional Class shares pay no 12b-1 fees.
As provided in the investment management agreement, each Fund bears a portion of the cost of 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 each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended Feb. 28, 2017, each Fund was
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Table of Contents
Notes to financial statements
Delaware Investments® National Tax-Free Funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||||
$5,809 | $7,159 | $12,840 |
For the six months ended Feb. 28, 2017, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||||
$12,172 | $5,253 | $20,657 |
For the six months ended Feb. 28, 2017, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares. 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-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||||
Class A | $6,574 | $ — | $19,122 | |||
Class C | 1,014 | 777 | 12,140 |
Trustees’ fees include expenses accrued by the Funds 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 Feb. 28, 2017, 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. Pursuant to these procedures, for the six months ended Feb. 28, 2017, the Funds engaged in the following securities purchases and securities sales, which did not result in a realized gain or loss:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield | ||||
Purchases | $25,393,891 | $24,605,139 | $84,979,688 | |||
Sales | 30,097,852 | 21,104,652 | 56,059,135 |
* The aggregate contractual waiver period covering this report is from Dec. 29, 2015 through Dec. 29, 2017.
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Table of Contents
3. Investments
For the six months ended Feb. 28, 2017, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||
Purchases | $ 92,538,865 | $ 93,681,057 | $158,470,007 | |||
Sales | 123,991,736 | 190,762,403 | 218,929,388 |
At Feb. 28, 2017, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At Feb. 28, 2017, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | |||||||||||||
Cost of Investments | $465,494,276 | $547,582,270 | $1,102,412,248 | ||||||||||||
Aggregate unrealized appreciation of investments | $ 37,837,723 | $ 26,533,864 | $ 60,674,913 | ||||||||||||
Aggregate unrealized depreciation of investments | (4,296,991) | (3,224,129) | (16,315,239) | ||||||||||||
Net unrealized appreciation of investments | $ 33,540,732 | $ 23,309,735 | $ 44,359,674 |
Under the Regulated Investment Company Modernization Act of 2010 (Act), net capital losses recognized for tax years beginning after Dec. 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
At Aug. 31, 2016, there were no capital loss carryforwards for Delaware Tax-Free USA Fund. Capital loss carryforwards available to offset future realized capital gains, through the indicated expiration dates for Delaware Tax-Free USA Intermediate and Delaware National High-Yield Municipal Bond Fund were as follows:
Pre-enactment capital loss Expiration date | No expiration Post-enactment capital loss character | |||||||||||||||
2017 | Short-term | Long-term | Total | |||||||||||||
Delaware Tax-Free USA Intermediate Fund | $ | 698,745 | $ | — | $ | — | $ | 698,745 | ||||||||
Delaware National High-Yield Municipal Bond Fund | 374,735 | 9,500,544 | 6,287,546 | 16,162,825 |
U.S. 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
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Table of Contents
Notes to financial statements
Delaware Investments® National Tax-Free Funds
3. Investments (continued)
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 below.
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, 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, 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, fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
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The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of Feb. 28, 2017:
Delaware Tax-Free USA Fund | ||||
Securities | Level 2 | |||
Municipal Bonds | $498,835,008 | |||
Short-Term Investment | 200,000 | |||
Total Value of Securities | $499,035,008 | |||
Delaware Tax-Free USA | ||||
Intermediate Fund | ||||
Securities | Level 2 | |||
Municipal Bonds | $569,492,005 | |||
Short-Term Investments | 1,400,000 | |||
Total Value of Securities | $570,892,005 | |||
Delaware National High-Yield | ||||
Municipal Bond Fund | ||||
Securities | Level 2 | |||
Municipal Bonds | $1,104,661,922 | |||
Short-Term Investments | 42,110,000 | |||
Total Value of Securities | $1,146,771,922 |
During the six months ended Feb. 28, 2017, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to each Fund. Each Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when a Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to net assets. During the six months ended Feb. 28, 2017, there were no Level 3 investments.
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Table of Contents
Notes to financial statements
Delaware Investments® National Tax-Free Funds
4. Capital Shares
Transactions in capital shares were as follows:
Delaware National | ||||||||||||||||||||||||
Delaware Tax-Free | Delaware Tax-Free | High-Yield | ||||||||||||||||||||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||||||||||||||||||||||
Six months | Year | Six months | Year | Six months | Year | |||||||||||||||||||
ended | ended | ended | ended | ended | ended | |||||||||||||||||||
2/28/17 | 8/31/16 | 2/28/17 | 8/31/16 | 2/28/17 | 8/31/16 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 1,367,014 | 1,543,347 | 1,974,473 | 3,487,962 | 2,003,083 | 6,479,874 | ||||||||||||||||||
Class C | 242,777 | 347,808 | 214,142 | 464,194 | 844,320 | 2,735,540 | ||||||||||||||||||
Institutional Class | 1,371,928 | 1,666,378 | 7,992,186 | 11,875,678 | 21,774,700 | 29,096,103 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
| |||||||||||||||||||||||
Class A | 973,215 | 1,256,558 | 197,591 | 409,255 | 335,037 | 634,748 | ||||||||||||||||||
Class C | 55,815 | 59,975 | 36,611 | 73,157 | 132,673 | 238,848 | ||||||||||||||||||
Institutional Class | 88,395 | 89,643 | 353,341 | 729,446 | 1,366,109 | 2,380,529 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
4,099,144 | 4,963,709 | 10,768,344 | 17,039,692 | 26,455,922 | 41,565,642 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares redeemed: | ||||||||||||||||||||||||
Class A | (5,707,240 | ) | (5,054,234 | ) | (3,499,087 | ) | (4,027,785 | ) | (7,104,542 | ) | (6,268,883 | ) | ||||||||||||
Class C | (336,320 | ) | (434,847 | ) | (448,858 | ) | (550,150 | ) | (1,614,358 | ) | (1,486,395 | ) | ||||||||||||
Institutional Class | (1,026,934 | ) | (840,919 | ) | (16,025,841 | ) | (13,268,401 | ) | (22,506,826 | ) | (12,755,521 | ) | ||||||||||||
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(7,070,494 | ) | (6,330,000 | ) | (19,973,786 | ) | (17,846,336 | ) | (31,225,726 | ) | (20,510,799 | ) | |||||||||||||
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Net increase (decrease) | (2,971,350 | ) | (1,366,291 | ) | (9,205,442 | ) | (806,644 | ) | (4,769,804 | ) | 21,054,843 | |||||||||||||
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Certain shareholders may exchange shares of one class for shares of another class in the same Fund. For the six months ended Feb. 28, 2017 and year ended Aug. 31, 2016, each Fund had the following exchange transactions. These exchange transactions are included as subscriptions and redemptions in the tables on previous page and the “Statements of changes in net assets.”
Six months ended 2/28/17 | ||||||||||||||||
Exchange Redemptions | Exchange Subscriptions Institutional Class Shares | |||||||||||||||
Class A Shares | Class C Shares | Value | ||||||||||||||
Delaware Tax-Free USA Fund | 412,777 | 6,306 | 416,942 | $ 4,827,013 | ||||||||||||
Delaware Tax-Free USA Intermediate Fund | 169,561 | — | 168,293 | 2,004,404 | ||||||||||||
Delaware National High-Yield Municipal Bond Fund | 2,104,440 | 3,052 | 2,092,825 | 22,566,855 |
Year ended 8/31/16 | ||||||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||||||
Class A Shares | Institutional Class Shares | Class A Shares | Class C Shares | Institutional Class Shares | Value | |||||||||||||||||||
Delaware Tax-Free USA Fund | 45,617 | — | — | — | 45,355 | $ | 555,813 | |||||||||||||||||
Delaware Tax-Free USA Intermediate Fund | 28,037 | 172 | 174 | — | 27,807 | 348,312 | ||||||||||||||||||
Delaware National High-Yield Municipal Bond Fund | 459,565 | 9,199 | 8,818 | 468 | 455,914 | 5,308,745 |
5. Line of Credit
Each Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), was a participant in a $155,000,000 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. Under the agreement, the Participants were charged an annual commitment fee of 0.10%, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one-third of their net assets under the agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the agreement expired on Nov. 7, 2016.
On Nov. 7, 2016, each Fund, along with the other Participants, entered into an amendment to the agreement for a $155,000,000 revolving line of credit. The line of credit is to be used as described above and operates in substantially the same manner as the original agreement, with the exception of the
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Notes to financial statements
Delaware Investments® National Tax-Free Funds
5. Line of Credit (continued)
annual commitment fee. Under the amendment to the agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants on the basis of relative net assets of each Participant’s allocation of the entire facility. The line of credit available under the agreement expires on Nov. 6, 2017.
The Funds had no amounts outstanding as of Feb. 28, 2017, or at any time during the period then ended.
6. Geographic, Credit, and Market Risks
The Funds concentrate their investments in securities issued by municipalities, and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in U.S. territories and possessions such as the Commonwealth of Puerto Rico, the U.S. 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 U.S. states or territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At Feb. 28, 2017, the percentage of each Fund’s net assets insured by bond issuers are listed below and these securities have been identified on the “Schedules of investments.”
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||
Assured Guaranty Corporation | 0.22% | 0.37% | 0.50% | |||||||||
Assured Guaranty Municipal Corporation | — | 1.83% | 1.29% | |||||||||
AMBAC Assurance Corporation | 0.55% | — | 0.09% | |||||||||
National Public Finance Guarantee Corporation | 0.53% | — | — | |||||||||
Syncora Guarantee | — | — | 0.16% | |||||||||
Total | 1.30% | 2.20% | 2.04% |
As of Feb. 28, 2017, Delaware Tax-Free USA Fund invested in municipal bonds issued by the states of California, New York, and Texas which constituted approximately 13.34%, 16.97%, and 11.01%, respectively, of the Fund’s net assets. As of Feb. 28, 2017, Delaware Tax-Free USA Intermediate Fund invested in municipal bonds issued by the states of California, New York, and Texas, which constituted approximately 15.85%, 17.31%, and 12.22%, respectively, of the Fund’s net assets. As of Feb. 28, 2017, Delaware National High-Yield Municipal Bond Fund invested in municipal bonds issued by the state of
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California which constituted approximately 15.15%, of the Fund’s net assets. These investments could make each Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds.
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.
The Funds may invest in advance refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities, which are then deposited in an irrevocable escrow 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
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Notes to financial statements
Delaware Investments® National Tax-Free Funds
6. Geographic, Credit, and Market Risks (Continued)
Boards have 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 the Funds’ 15% limit on investments in illiquid securities. Rule 144A held by each Fund have been identified on the “Schedules of investments.”
7. Contractual Obligations
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have 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.
8. Recent Accounting Pronouncements
On Oct. 13, 2016, the Securities and Exchange Commission amended existing rules intended to modernize reporting and disclosure of information. These amendments relate to Regulation S-X which sets forth the form and content of financial statements. At this time, management is evaluating the implications of adopting these amendments and their impact on the financial statements and accompanying notes.
9. Subsequent Events
Effective April 3, 2017, Delaware Investments® Family of Funds became Delaware Fundssm by Macquarie and Delaware Investments changed its name to Macquarie Investment Management (MIM). MIM is the marketing name for the companies comprising the asset management division of Macquarie Group Limited.
Management has determined that no other material events or transactions occurred subsequent to Feb. 28, 2017 that would require recognition or disclosure in the Funds’ financial statements.
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Board of trustees
| ||||||
Shawn K. Lytle | Ann D. Borowiec | John A. Fry | Frances A. | |||
President and | Former Chief Executive | President | Sevilla-Sacasa | |||
Chief Executive Officer | Officer | Drexel University | Former Chief Executive | |||
Delaware Investments ® | Private Wealth Management | Philadelphia, PA | Officer | |||
Family of Funds | J.P. Morgan Chase & Co. | Banco Itaú | ||||
Philadelphia, PA | New York, NY | Lucinda S. Landreth | International | |||
Former Chief Investment | Miami, FL | |||||
Thomas L. Bennett | Joseph W. Chow | Officer | ||||
Chairman of the Board | Former Executive Vice | Assurant, Inc. | Thomas K. Whitford | |||
Delaware Investments | President | New York, NY | Former Vice Chairman | |||
Family of Funds | State Street Corporation | PNC Financial Services Group | ||||
Private Investor | Boston, MA | Pittsburgh, PA | ||||
Rosemont, PA | ||||||
Janet L. Yeomans | ||||||
Former Vice President and | ||||||
Treasurer | ||||||
3M Company | ||||||
St. Paul, MN | ||||||
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 Investments | Delaware Investments | ||||
Delaware Investments | Family of Funds | Family of Funds | ||||
Family of Funds | Philadelphia, PA | Philadelphia, PA | ||||
Philadelphia, PA |
This semiannual report is for the information of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.
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-Q. Each Fund’s Forms N-Q, 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 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-Q are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s Forms N-Q 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.
99
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
PwC has informed the Trust that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being considered independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm. PwC has informed the Trust that PwC has relationships with lenders who hold or own more than ten percent of the shares of certain funds within the Delaware FundsSM by Macquarie. These relationships call into question PwC’s independence under the Loan Rule with respect to those funds, as well as all other funds in the complex. The SEC has granted no-action relief to another fund complex in circumstances that appear to be substantially similar to the Trust’s (see Fidelity Management & Research Company et al., No-Action Letter (June 20, 2016)). In addition, PwC has advised the Trust’s Audit Committee that PwC believes that under the facts and circumstances surrounding PwC’s lending relationships, its ability to exercise objective and impartial judgment in connection with its audit engagement with the Trust has not been impaired and that a reasonable investor with knowledge of all relevant facts and circumstances would reach the same conclusion. If in the future, however, the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Trust will need to take other action in order for the Trust’s filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Finally, the SEC has indicated that its no-action relief will expire 18 months from its issuance, after which PwC and the Delaware FundsSM by Macquarie will no longer be able rely on the letter unless its term is extended or made permanent by the SEC Staff.
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 second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a) (1) Code of Ethics
Not applicable.
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.
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® TAX-FREE FUND
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | May 3, 2017 |
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: | May 3, 2017 |
/s/ RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | May 3, 2017 |