Item 1. Reports to Stockholders
Annual report
Fixed income mutual funds
Delaware Tax-Free USA Fund
Delaware Tax-Free USA Intermediate Fund
Delaware National High-Yield Municipal Bond Fund
August 31, 2020
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Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up at delawarefunds.com/edelivery. If you own these shares through a financial intermediary, you may contact your financial intermediary. You may elect to receive paper copies of all future shareholder reports free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 800 523-1918. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the Delaware Funds® by Macquarie or your financial intermediary. |
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of in the mail. Visit delawarefunds.com/edelivery.
Experience Delaware Funds® by Macquarie
Macquarie Investment Management (MIM) is a global asset manager with offices in the United States, Europe, Asia, and Australia. As active managers, we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Manage your account online
| ● | | Check your account balance and transactions |
| ● | | View statements and tax forms |
| ● | | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. MIM is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
The Funds are governed by US laws and regulations.
Table of contents
Unless otherwise noted, views expressed herein are current as of August 31, 2020, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2020 Macquarie Management Holdings, Inc.
Portfolio management review
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| Delaware Funds® by Macquarie national tax-free funds | | September 8, 2020 (Unaudited) |
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Performance preview (for the year ended August 31, 2020) | |
Delaware Tax-Free USA Fund (Institutional Class shares) | | | 1-year return | | | | +3.70% | |
Delaware Tax-Free USA Fund (Class A shares) | | | 1-year return | | | | +3.44% | |
Bloomberg Barclays Municipal Bond Index (benchmark) | | | 1-year return | | | | +3.24% | |
Lipper General & Insured Municipal Debt Funds Average | | | 1-year return | | | | +2.10% | |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Fund, please see the table on page 6.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper General & Insured Municipal Debt Funds Average compares funds that either invest primarily in municipal debt issues in the top three credit ratings or invest primarily in municipal debt issues insured as to timely payment.
Please see page 9 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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Delaware Tax-Free USA Intermediate Fund (Institutional Class shares) | | | 1-year return | | | | +2.92% | |
Delaware Tax-Free USA Intermediate Fund (Class A shares) | | | 1-year return | | | | +2.76% | |
Bloomberg Barclays 3–15 Year Blend Municipal Bond Index (benchmark) | | | 1-year return | | | | +3.39% | |
Lipper Intermediate Municipal Debt Funds Average | | | 1-year return | | | | +2.28% | |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Intermediate Fund, please see the table on page 11.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years.
Please see page 14 for a description of the Index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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Delaware National High-Yield Municipal Bond Fund (Institutional Class shares) | | | 1-year return | | | | +1.44% | |
Delaware National High-Yield Municipal Bond Fund (Class A shares) | | | 1-year return | | | | +1.06% | |
Bloomberg Barclays Municipal Bond Index (benchmark) | | | 1-year return | | | | +3.24% | |
Lipper High Yield Municipal Debt Funds Average | | | 1-year return | | | | -0.02% | |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware National High-Yield Municipal Bond Fund, please see the table on page 16.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper High Yield Municipal Debt Funds Average compares funds that invest at least 50% of assets in lower-rated municipal debt issues.
Please see page 19 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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Portfolio management review
Delaware Funds® by Macquarie national tax-free funds
Investment objectives
Delaware Tax-Free USA Fund seeks as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.
Delaware Tax-Free USA Intermediate Fund seeks as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.
Delaware National High-Yield Municipal Income Fund seeks a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.
Economic backdrop
For most of the first half of the fiscal year ended August 31, 2020, the US economy continued along its steady growth path with historically low unemployment. In both the third and fourth calendar quarters of 2019, the nation’s gross domestic product (GDP) – a measure of national economic output – rose by an annualized 2.1%. Meanwhile, the US jobless rate remained at or near a half-century low throughout 2019 and into 2020, reaching a low of 3.9% in September 2019.
Starting in February 2020, however, global economic conditions began to dramatically worsen as the full social and financial impact of the coronavirus pandemic became evident. Quarantine orders mounted across the country and around the world, economic activity ground to a halt, and job losses grew by the millions. US GDP shrank by an annualized 5.0% in the first quarter of 2020 and then by an annualized 31.7% in the second quarter, the worst quarterly economic contraction in US history.
Both the US Federal Reserve and the federal government took aggressive action to attempt to ease this economic damage. In early March, the Fed cut the federal funds rate, its benchmark short-term interest rate, by 0.50 percentage points. Two weeks later, it cut the federal funds rate by another full percentage point, bringing it to essentially zero, where it stood throughout the
remainder of the fiscal year. Further, in late March, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus bill focused on providing support to individuals and businesses hurt by the economic fallout.
After the United States lost 20.5 million jobs in April 2020, the US unemployment rate soared to 14.7%, the highest level seen since the Great Depression. As economies around the country gradually reopened, however, the national economic picture slowly improved. By August, the US jobless rate fell to 8.4% – still historically high, though a significant improvement from earlier in the year – as some workers returned to their positions after temporary layoffs.
Sources: US Bureau of Economic Analysis, US Bureau of Labor Statistics, and Bloomberg.
Municipal bond market conditions
Overall, the municipal bond market, as measured by the Bloomberg Barclays Municipal Bond Index, returned 3.24% for the fiscal year ended August 31, 2020.
When describing market conditions, we can divide the fiscal year into three distinct periods. The first covers September 2019 through March 9, 2020, during which municipal bonds enjoyed solid performance amid favorable demand for tax-exempt securities, coupled with relatively
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limited supply. In this environment, longer-duration, lower-rated securities generally outperformed their shorter-maturity, more highly rated counterparts, as many investors accepted greater interest rate risk and credit risk in exchange for higher yields. During this period, the municipal bond market, as measured by the Bloomberg Barclays Municipal Bond Index, gained 3.04%.
Starting on March 10, however, conditions for investors in municipal bonds abruptly shifted. With mounting concern about the coronavirus, market volatility soared, liquidity dried up, and more highly leveraged institutional investors were forced to unload their municipal debt. Investors, eager for safety, bid up prices of more highly rated, shorter-term bonds, while lower-quality, longer-term issues lagged, reflecting their increased credit and duration risk. Between March 10 and April 30, the Bloomberg Barclays Municipal Bond Index declined 4.84%, with most of that loss coming during two especially difficult weeks in March. Lower-investment-grade and below-investment-grade bonds performed poorly during this roughly seven-week stretch, declining 11.85% and 14.00%, respectively.
Finally, between May and the end of the fiscal year on August 31, municipal securities rallied strongly, with the Bloomberg Barclays Municipal Bond Index gaining 5.29%. Better-than-expected national economic data and heightened demand for tax-exempt bonds, especially lower-rated issues that had fallen disproportionately during the market’s earlier downturn, boosted the asset class.
Looking at the full fiscal year, the following tables indicate that bonds with intermediate maturities generally outperformed their shorter- and longer-dated counterparts, while more highly rated issues fared better than lower-rated bonds.
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| Returns by maturity | | | | |
1 year | | | 1.95 | % |
3 years | | | 2.88 | % |
5 years | | | 3.51 | % |
10 years | | | 3.53 | % |
22+ years | | | 3.05 | % |
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| Returns by credit rating | | | | |
AAA | | | 4.03 | % |
AA | | | 3.58 | % |
A | | | 2.75 | % |
BBB | | | 1.33 | % |
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| Source: Bloomberg. | | | | |
A consistent management approach
For all three Funds highlighted in this report, we maintained the same management strategy we employ in all market conditions. We follow a bottom-up (bond by bond) investment approach, which means we select bonds on an issuer-by-issuer basis, based on our team’s thorough credit research. We regularly seek bonds that offer the Funds’ shareholders what we view as an attractive trade-off between reward potential and risk.
Following this approach, we generally maintain less exposure to highly rated, lower-yielding bonds and more exposure to bonds with lower-investment-grade or below-investment-grade credit ratings. We believe that by focusing on higher yielding securities that have solid underlying credit quality, we have more opportunity to add value for the Funds’ shareholders.
As of fiscal year end on August 31, 2020, roughly 48.5% of the net assets of Delaware Tax-Free
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Portfolio management review
Delaware Funds® by Macquarie national tax-free funds
USA Fund were invested in bonds with lower-investment-grade credit ratings (A and BBB), and approximately 42.4% of the net assets of Delaware Tax-Free USA Intermediate Fund were invested in these same credit tiers. Both Funds also maintained allocations to high yield municipal bonds, those with credit ratings below BBB-. Both Funds may hold up to 20% of their net assets in high yield debt, although these allocations remained below that threshold throughout the fiscal year. When investing in the high yield market segment, we thoroughly analyze the securities’ credit risk and emphasize those bonds that we believe offer a favorable risk-reward balance.
Consistent with its mandate, Delaware National High-Yield Municipal Bond Fund maintained the largest exposure to high yield bonds of the three Funds. As of August 31, 2020, more than 61.7% of the Fund’s portfolio was held in bonds with credit ratings below BBB-, including nonrated bonds.
Tactical investment opportunities
For the first part of the fiscal year – roughly the period between September 2019 and the pandemic-fueled market selloff in March 2020 – we tended to limit our selling activity in the Funds’ portfolios. This approach reflected our assessment that the Funds were well positioned with many older bonds that had been issued in times of higher interest rates. This meant they offered a level of income that would be difficult to replace through the purchase of newer bonds.
Market conditions shifted dramatically, however, with the arrival of the coronavirus. In March, demand for municipal bonds suddenly weakened, and an environment of mutual fund inflows across the market turned into one of rapid outflows. We quickly determined this outflow trend was likely to worsen. As a result, we decided to raise cash in these Funds by selling bonds in an orderly way.
Our goal was to preserve each Fund’s positioning as best we could, to be able to satisfy shareholder redemptions while avoiding having to sell securities at temporarily depressed prices. We believe these proactive sales worked to shareholders’ benefit, as the Funds had enough cash on hand to meet the redemption requests we received.
Beginning in April, municipal market conditions began to improve, reflecting aggressive economic stimulus and investors’ optimism about state economies around the country beginning to reopen. In this environment, we saw opportunities to purchase bonds priced significantly lower than what we believed was justified given these securities’ underlying credit quality. Many of these new purchases took place in the healthcare and charter school sectors, which had been more economically vulnerable amid the spread of the coronavirus and where we believed the opportunity for price recovery appeared to be the greatest.
We also employed a tax-loss swapping strategy to varying degrees in all three Funds. This approach entailed selling existing holdings at a loss (which can be applied against future capital gains) and using the sale proceeds to buy bonds with similar risk characteristics but higher yields.
Notable performance factors
For the fiscal year, longer-duration bonds – those with more sensitivity to interest rates – outperformed bonds with shorter durations. At the same time, bonds with higher credit ratings outperformed lower-quality bonds, which suffered disproportionately during the market’s March downturn. Many of the Funds’ strongest and weakest performers during the fiscal year reflected these performance trends.
For the 12-month period, tobacco-securitization bonds were among the strongest performers overall in the municipal bond marketplace and
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also for the three Funds. These securities have benefited as tobacco consumption trends have weakened more slowly than expected. In addition, because many tobacco issuers have refinanced their outstanding debt, older, higher yielding bonds have benefited from their scarcity. Delaware Tax-Free USA Fund, Delaware National High-Yield Municipal Bond Fund, and Delaware Tax-Free USA Intermediate Fund each held zero-coupon Virginia and California tobacco bonds. In addition to benefiting from the factors lifting the overall tobacco sector, these securities were further helped by their high durations (indicating interest rate sensitivity), which lifted performance as rates declined.
Puerto Rico sales-tax bonds, known as COFINA bonds, were also notably strong performers for Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund, returning more than 7% for the Funds’ fiscal year. COFINA bonds benefited from strong investor demand due to the securities’ fully tax-exempt status (bonds of US territories are generally tax-exempt for residents in all 50 states), as well as Puerto Rico’s better-than-expected fiscal position.
Bonds of Idaho’s Nampa Development Corp., an urban renewal agency, contributed to the performance of Delaware National High-Yield Municipal Bond Fund. These A-rated bonds were refunded during the fiscal year, resulting in a more than 16% gain for the Fund.
Turning to individual detractors, Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund saw negative results from an investment in bonds for the American Dream retail
and entertainment project. Bonds for this massive development in the Meadowlands, N.J., lost more than 20% for the Funds, reflecting the need to delay the facility’s scheduled opening due to the coronavirus pandemic. Despite these difficulties and the challenging business environment for retailers, we note that most of this development consists of entertainment facilities that we expect to recover as concern about the pandemic eases.
Among the market’s weakest performers were bonds of healthcare issuers, especially those of senior living operators, which struggled amid concern about how the coronavirus would affect their finances. Notable weak performers in this market area included Minnesota Senior Living bonds for Apple Valley. These bonds, paying a 5% coupon and maturing in 2047, fell close to 30% for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund.
Meanwhile, Delaware Tax-Free USA Intermediate Fund saw difficult performance from nonrated debt of Tuscan Gardens of Venetia Bay, a Florida senior living project whose bonds declined nearly 25%.
In Delaware National High-Yield Municipal Bond Fund, the largest decline came from California State Pollution Control Financing Authority bonds for a plant that develops medium-density fiberboard. Due to the need for additional working capital to make the plant, the issuer took on more debt, resulting in a 40% loss for the bonds during the Funds’ fiscal year. Based on our credit research, we remain confident in the long-term financial viability of this facility.
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Performance summaries
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| Delaware Tax-Free USA Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
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| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
Class A (Est. January 11, 1984) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +3.44% | | | | +4.08% | | | | +4.31% | | | | +6.38% | |
Including sales charge | | | -1.19% | | | | +3.12% | | | | +3.83% | | | | +6.25% | |
Class C (Est. November 28, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.66% | | | | +3.30% | | | | +3.53% | | | | +3.80% | |
Including sales charge | | | +1.66% | | | | +3.30% | | | | +3.53% | | | | +3.80% | |
Institutional Class (Est. December 30, 2008) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +3.70% | | | | +4.35% | | | | +4.56% | | | | +6.01% | |
Including sales charge | | | +3.70% | | | | +4.35% | | | | +4.56% | | | | +6.01% | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +5.09%* | |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the "Fund and benchmark performance" table. Expenses for each class are listed on the "Fund expense ratios" table on page 8. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual
12b-1 fee of 0.25% of average daily net assets. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All Class A shares currently bear 12b-1 fees at the same rate, the blended rate, currently 0.25% 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. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales
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charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
7
Performance summaries
Delaware Tax-Free USA Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 0.56% of the Fund’s average daily net assets during the period from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 0.95% | | 1.70% | | 0.70% |
Net expenses
(including fee waivers, if any) | | 0.81% | | 1.56% | | 0.56% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
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Performance of a $10,000 investment1
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | | | | | | | |
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | | Ending value | |
| | Delaware Tax-Free USA Fund — Institutional Class shares | | | $10,000 | | | | $15,622 | |
| | Bloomberg Barclays Municipal Bond Index | | | $10,000 | | | | $14,768 | |
| | Delaware Tax-Free USA Fund — Class A shares | | | $9,550 | | | | $14,563 | |
1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 8. Please note additional details on pages 6 through 10.
The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010. The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
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Performance summaries
Delaware Tax-Free USA Fund
| | | | |
| | | Nasdaq symbols | | CUSIPs |
Class A | | DMTFX | | 245909106 |
Class C | | DUSCX | | 245909700 |
Institutional Class | | DTFIX | | 24610H104 |
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Performance summaries
| | |
Delaware Tax-Free USA Intermediate Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
Class A (Est. January 7, 1993) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.76% | | | | +3.40% | | | | +3.13% | | | | +4.64% | |
Including sales charge | | | -0.09% | | | | +2.82% | | | | +2.85% | | | | +4.54% | |
Class C (Est. November 28, 1995) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.89% | | | | +2.52% | | | | +2.25% | | | | +3.49% | |
Including sales charge | | | +0.89% | | | | +2.52% | | | | +2.25% | | | | +3.49% | |
Institutional Class (Est. December 30, 2008) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +2.92% | | | | +3.55% | | | | +3.29% | | | | +4.45% | |
Including sales charge | | | +2.92% | | | | +3.55% | | | | +3.29% | | | | +4.45% | |
Bloomberg Barclays 3–15 Year Blend Municipal Bond Index | | | +3.39 | % | | | +3.69 | % | | | +3.61 | % | | | +4.47%* | |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 13. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 2.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. This fee was contractually limited to 0.15% of average daily net assets from September 1, 2019 through August 31, 2020.* Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic
11
Performance summaries
Delaware Tax-Free USA Intermediate Fund
conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local taxes and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have
adverse impacts on financial instruments that reference these rates. The potential abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
12
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 0.50% of the Fund’s average daily net assets during the period from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | | | | | | | |
| Fund expense ratios | | Class A | | | Class C | | | Institutional Class | |
Total annual operating expenses (without fee waivers) | | | 0.91% | | | | 1.66% | | | | 0.66% | |
Net expenses (including fee waivers, if any) | | | 0.65% | | | | 1.50% | | | | 0.50% | |
| | | |
Type of waiver | | | Contractual | | | | Contractual | | | | Contractual | |
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
13
Performance summaries
Delaware Tax-Free USA Intermediate Fund
Performance of a $10,000 investment1
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | | | | | | | |
| For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | | Ending value | |
| | Bloomberg Barclays 3–15 Year Blend Municipal Bond Index | | | $10,000 | | | | $14,251 | |
| | Delaware Tax-Free USA Intermediate Fund — Institutional Class shares | | | $10,000 | | | | $13,819 | |
| | Delaware Tax-Free USA Intermediate Fund — Class A shares | | | $9,725 | | | | $13,243 | |
1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2010, and includes the effect of a 2.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 13. Please note additional details on pages 11 through 15.
The graph also assumes $10,000 invested in the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index as of August 31, 2010. The Bloomberg Barclays 3–15 Year Blend Municipal Bond Index measures the total return performance of investment grade, US tax-exempt bonds with maturities from 2 to 17 years.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
14
| | | | |
| | | Nasdaq symbols | | CUSIPs |
Class A | | DMUSX | | 245909304 |
Class C | | DUICX | | 245909882 |
Institutional Class | | DUSIX | | 24610H203 |
15
Performance summaries
| | |
Delaware National High-Yield Municipal Bond Fund | | August 31, 2020 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | Average annual total returns through August 31, 2020 | |
| | | 1 year | | | 5 year | | | 10 year | | | Lifetime | |
Class A (Est. September 22, 1986) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.06% | | | | +4.86% | | | | +5.36% | | | | +6.14% | |
Including sales charge | | | -3.48% | | | | +3.89% | | | | +4.87% | | | | +6.00% | |
Class C (Est. May 26, 1997) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +0.41% | | | | +4.07% | | | | +4.58% | | | | +4.52% | |
Including sales charge | | | -0.57% | | | | +4.07% | | | | +4.58% | | | | +4.52% | |
Institutional Class (Est. December 31, 2008) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +1.44% | | | | +5.13% | | | | +5.62% | | | | +8.37% | |
Including sales charge | | | +1.44% | | | | +5.13% | | | | +5.62% | | | | +8.37% | |
Bloomberg Barclays Municipal Bond Index | | | +3.24% | | | | +3.99% | | | | +3.98% | | | | +5.09%* | |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed on the “Fund expense ratios” table on page 18. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual
12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the
16
time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local taxes and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The potential abandonment
of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
17
Performance summaries
Delaware National High-Yield Municipal Bond Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 0.60% of the Fund’s average daily net assets during the period from September 1, 2019 to August 31, 2020.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses (without fee waivers) | | 0.90% | | 1.65% | | 0.65% |
Net expenses (including fee waivers, if any) | | 0.85% | | 1.60% | | 0.60% |
| | | |
Type of waiver | | Contractual | | Contractual | | Contractual |
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
18
Performance of a $10,000 investment1
Average annual total returns from August 31, 2010 through August 31, 2020
| | | | | | | | | | |
For period beginning August 31, 2010 through August 31, 2020 | | Starting value | | Ending value |
Delaware National High-Yield Municipal Bond Fund — Institutional Class shares | | | | $10,000 | | | | | $17,284 | |
Delaware National High-Yield Municipal Bond Fund — Class A shares | | | | $9,550 | | | | | $16,096 | |
 Bloomberg Barclays Municipal Bond Index
| | | | $10,000 | | | | | $14,768 | |
1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2010, and includes the effect of a 4.50% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 18. Please note additional details on pages 16 through 20.
The graph also assumes $10,000 invested in the Bloomberg Barclays Municipal Bond Index as of August 31, 2010. The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
19
Performance summaries
Delaware National High-Yield Municipal Bond Fund
| | | | |
| | | Nasdaq symbols | | CUSIPs |
Class A | | CXHYX | | 928928241 |
Class C | | DVHCX | | 928928225 |
Institutional Class | | DVHIX | | 24610H302 |
20
Disclosure of Fund expenses
For the six-month period from March 1, 2020 to August 31, 2020 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from March 1, 2020 to August 31, 2020.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
21
Disclosure of Fund expenses
For the six-month period from March 1, 2020 to August 31, 2020 (Unaudited)
Delaware Tax-Free USA Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Account Value 3/1/20 | | Ending
Account Value 8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period 3/1/20 to 8/31/20* |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $987.80 | | | | | 0.81 | % | | | | $4.05 | |
Class C | | | | 1,000.00 | | | | | 984.10 | | | | | 1.56 | % | | | | 7.78 | |
Institutional Class | | | | 1,000.00 | | | | | 989.30 | | | | | 0.56 | % | | | | 2.80 | |
Hypothetical 5% return (5% return before expenses) | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $1,021.06 | | | | | 0.81 | % | | | | $4.12 | |
Class C | | | | 1,000.00 | | | | | 1,017.29 | | | | | 1.56 | % | | | | 7.91 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.32 | | | | | 0.56 | % | | | | 2.85 | |
|
| Delaware Tax-Free USA Intermediate Fund | |
| Expense analysis of an investment of $1,000 | |
| | | | |
| | | Beginning
Account Value 3/1/20 | | Ending
Account Value
8/31/20 | | Annualized Expense Ratio | | Expenses Paid During Period 3/1/20 to 8/31/20* |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $992.80 | | | | | 0.65 | % | | | | $3.26 | |
Class C | | | | 1,000.00 | | | | | 987.80 | | | | | 1.50 | % | | | | 7.49 | |
Institutional Class | | | | 1,000.00 | | | | | 993.80 | | | | | 0.50 | % | | | | 2.51 | |
Hypothetical 5% return (5% return before expenses) | |
Class A | | | | $1,000.00 | | | | | $1,021.87 | | | | | 0.65 | % | | | | $3.30 | |
Class C | | | | 1,000.00 | | | | | 1,017.60 | | | | | 1.50 | % | | | | 7.61 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.62 | | | | | 0.50 | % | | | | 2.54 | |
22
Delaware National High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Account Value
3/1/20 | | Ending
Account Value
8/31/20 | | Annualized
Expense Ratio | | Expenses
Paid During Period
3/1/20 to 8/31/20* |
Actual Fund return† | | | | | | | | | | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $957.00 | | | | | 0.85 | % | | | | $4.18 | |
Class C | | | | 1,000.00 | | | | | 953.60 | | | | | 1.60 | % | | | | 7.86 | |
Institutional Class | | | | 1,000.00 | | | | | 958.80 | | | | | 0.60 | % | | | | 2.95 | |
Hypothetical 5% return (5% return before expenses) | | | | | | | | | | | |
Class A | | | | $1,000.00 | | | | | $1,020.86 | | | | | 0.85 | % | | | | $4.32 | |
Class C | | | | 1,000.00 | | | | | 1,017.09 | | | | | 1.60 | % | | | | 8.11 | |
Institutional Class | | | | 1,000.00 | | | | | 1,022.12 | | | | | 0.60 | % | | | | 3.05 | |
| * | “Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| † | Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns. |
23
| | |
| Security type / sector / state / territory allocations |
| Delaware Tax-Free USA Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | 98.22% |
Corporate Revenue Bonds | | 16.96% |
Education Revenue Bonds | | 7.14% |
Electric Revenue Bonds | | 3.60% |
Healthcare Revenue Bonds | | 13.53% |
Lease Revenue Bonds | | 1.89% |
Local General Obligation Bonds | | 6.55% |
Pre-Refunded/Escrowed to Maturity Bonds | | 5.20% |
Special Tax Revenue Bonds | | 14.94% |
State General Obligation Bonds | | 12.94% |
Transportation Revenue Bonds | | 15.08% |
Water & Sewer Revenue Bond | | 0.39% |
Short-Term Investments | | 0.86% |
Total Value of Securities | | 99.08% |
Receivables and Other Assets Net of Liabilities | | 0.92% |
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 US as follows:
| | |
| State / territory | | Percentage of net assets |
Alabama | | 2.56% |
Arizona | | 3.91% |
California | | 9.70% |
Colorado | | 4.05% |
Connecticut | | 1.41% |
District of Columbia | | 1.07% |
Florida | | 2.71% |
Georgia | | 0.83% |
Guam | | 0.39% |
Hawaii | | 0.68% |
Illinois | | 9.21% |
Indiana | | 1.11% |
Kansas | | 0.47% |
Louisiana | | 1.18% |
Maryland | | 2.00% |
Massachusetts | | 0.48% |
Minnesota | | 1.03% |
Mississippi | | 0.81% |
Missouri | | 0.32% |
24
| | |
| State / territory | | Percentage of net assets |
Nebraska | | 1.05% |
New Jersey | | 3.42% |
New York | | 12.35% |
North Carolina | | 2.06% |
Ohio | | 3.08% |
Oklahoma | | 2.33% |
Oregon | | 0.06% |
Pennsylvania | | 3.75% |
Puerto Rico | | 11.98% |
Texas | | 11.16% |
Utah | | 0.90% |
Virginia | | 2.53% |
Washington | | 0.19% |
Wisconsin | | 0.30% |
Total Value of Securities | | 99.08% |
25
Security type / sector / state / territory allocations
| | |
| Delaware Tax-Free USA Intermediate Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | 96.82% |
Corporate Revenue Bonds | | 13.55% |
Education Revenue Bonds | | 5.05% |
Electric Revenue Bonds | | 4.35% |
Healthcare Revenue Bonds | | 9.78% |
Lease Revenue Bonds | | 4.65% |
Local General Obligation Bonds | | 6.59% |
Pre-Refunded/Escrowed to Maturity Bonds | | 7.19% |
Special Tax Revenue Bonds | | 14.27% |
State General Obligation Bonds | | 14.93% |
Transportation Revenue Bonds | | 14.91% |
Water & Sewer Revenue Bonds | | 1.55% |
Short-Term Investments | | 2.32% |
Total Value of Securities | | 99.14% |
Receivables and Other Assets Net of Liabilities | | 0.86% |
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 US as follows:
| | |
| State / territory | | Percentage of net assets |
Alabama | | 1.47% |
Arizona | | 8.57% |
California | | 14.05% |
Colorado | | 1.74% |
Connecticut | | 1.38% |
Delaware | | 0.05% |
District of Columbia | | 0.30% |
Florida | | 2.10% |
Georgia | | 1.79% |
Hawaii | | 0.63% |
Idaho | | 0.45% |
Illinois | | 8.17% |
Iowa | | 0.09% |
Kansas | | 0.23% |
Kentucky | | 0.99% |
Louisiana | | 3.55% |
Maryland | | 0.89% |
Massachusetts | | 2.43% |
Michigan | | 0.78% |
26
| | |
| State / territory | | Percentage of net assets |
Minnesota | | 0.54% |
Mississippi | | 2.23% |
Missouri | | 0.25% |
Montana | | 0.08% |
New Jersey | | 4.07% |
New York | | 16.23% |
North Carolina | | 0.72% |
Ohio | | 0.96% |
Oklahoma | | 0.37% |
Oregon | | 1.55% |
Pennsylvania | | 5.33% |
Puerto Rico | | 2.80% |
South Carolina | | 0.24% |
Tennessee | | 0.74% |
Texas | | 8.61% |
Utah | | 0.45% |
Virginia | | 2.42% |
Washington | | 1.24% |
Wisconsin | | 0.65% |
Total Value of Securities | | 99.14% |
27
Security type / sector / state / territory allocations
| | |
| Delaware National High-Yield Municipal Bond Fund | | As of August 31, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
| | |
| Security type / sector | | Percentage of net assets |
Municipal Bonds* | | 97.46% |
Corporate Revenue Bonds | | 19.39% |
Education Revenue Bonds | | 18.50% |
Electric Revenue Bonds | | 2.96% |
Healthcare Revenue Bonds | | 25.41% |
Housing Revenue Bond | | 0.06% |
Lease Revenue Bonds | | 3.63% |
Local General Obligation Bonds | | 1.65% |
Pre-Refunded/Escrowed to Maturity Bonds | | 3.11% |
Resource Recovery Revenue Bonds | | 0.75% |
Special Tax Revenue Bonds | | 9.08% |
State General Obligation Bonds | | 7.84% |
Transportation Revenue Bonds | | 2.18% |
Water & Sewer Revenue Bonds | | 2.90% |
Short-Term Investments | | 1.44% |
Total Value of Securities | | 98.90% |
Receivables and Other Assets Net of Liabilities | | 1.10% |
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 US as follows:
| | |
| State / territory | | Percentage of net assets |
Alabama | | 3.51% |
Arizona | | 6.90% |
Arkansas | | 0.38% |
California | | 12.00% |
Colorado | | 1.88% |
Delaware | | 0.08% |
District of Columbia | | 0.30% |
Florida | | 4.17% |
Georgia | | 0.51% |
Hawaii | | 0.23% |
Idaho | | 0.62% |
Illinois | | 7.06% |
Indiana | | 1.63% |
Iowa | | 0.63% |
Kansas | | 0.31% |
Kentucky | | 0.62% |
Louisiana | | 1.47% |
28
| | | | |
| State / territory | | Percentage of net assets |
Maine | | | 0.13% | |
Maryland | | | 0.56% | |
Massachusetts | | | 0.48% | |
Michigan | | | 0.75% | |
Minnesota | | | 1.59% | |
Mississippi | | | 0.61% | |
Missouri | | | 1.75% | |
Montana | | | 0.10% | |
Nevada | | | 0.69% | |
New Hampshire | | | 0.44% | |
New Jersey | | | 3.62% | |
New York | | | 4.36% | |
North Carolina | | | 2.58% | |
Ohio | | | 4.98% | |
Oklahoma | | | 0.15% | |
Oregon | | | 0.47% | |
Pennsylvania | | | 5.47% | |
Puerto Rico | | | 10.62% | |
South Carolina | | | 0.40% | |
Tennessee | | | 0.59% | |
Texas | | | 7.70% | |
Utah | | | 0.34% | |
Virginia | | | 3.93% | |
Washington | | | 1.31% | |
West Virginia | | | 0.19% | |
Wisconsin | | | 2.71% | |
Wyoming | | | 0.08% | |
Total Value of Securities | | | 98.90% | |
29
| | |
| Schedules of investments | | |
| Delaware Tax-Free USA Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds — 98.22% | | | | | | | | |
Corporate Revenue Bonds — 16.96% | | | | | | | | |
Buckeye, Ohio Tobacco Settlement Financing Authority | | | | | | | | |
(Asset-Backed Senior) | | | | | | | | |
Series B-2 5.00% 6/1/55 | | | 2,815,000 | | | $ | 3,096,500 | |
(Senior) | | | | | | | | |
Series A-2 3.00% 6/1/48 | | | 4,000,000 | | | | 3,962,640 | |
Series A-2 4.00% 6/1/48 | | | 5,550,000 | | | | 6,139,466 | |
Central Plains, Nebraska Energy Project | | | | | | | | |
(Project No. 3) | | | | | | | | |
Series A 5.00% 9/1/31 | | | 2,810,000 | | | | 3,659,491 | |
Series A 5.00% 9/1/35 | | | 2,160,000 | | | | 2,920,104 | |
Erie, New York Tobacco Asset Securitization | | | | | | | | |
(Capital Appreciation-Asset-Backed) | | | | | | | | |
Series A 1.536% 6/1/60 ^ | | | 57,695,000 | | | | 2,622,238 | |
Florida Development Finance Surface Transportation Facilities Revenue | | | | | | | | |
(Virgin Trains USA Passenger Rail Project) | | | | | | | | |
Series A 144A 6.50% 1/1/49 (AMT)#, • | | | 3,245,000 | | | | 2,812,506 | |
Golden State, California Tobacco Securitization Corporate Settlement Revenue | | | | | | | | |
(Capital Appreciation-Asset-Backed) | | | | | | | | |
Series B 1.473% 6/1/47 ^ | | | 10,210,000 | | | | 2,155,637 | |
Hoover, Alabama Industrial Development Board | | | | | | | | |
(United States Steel Corporation Project) | | | | | | | | |
5.75% 10/1/49 (AMT) | | | 5,000,000 | | | | 4,357,850 | |
Indiana Finance Authority Exempt Facility Revenue | | | | | | | | |
(Polyflow Indiana Project - Green Bond) | | | | | | | | |
144A 7.00% 3/1/39 (AMT)# | | | 3,030,000 | | | | 2,859,563 | |
Inland, California Empire Tobacco Securitization | | | | | | | | |
(Capital Appreciation-Turbo-Asset-Backed) | | | | | | | | |
Series E 144A 0.967% 6/1/57 #, ^ | | | 105,485,000 | | | | 5,782,688 | |
Series F 144A 1.453% 6/1/57 #, ^ | | | 48,985,000 | | | | 1,991,730 | |
Lower Alabama Gas District | | | | | | | | |
Series A 5.00% 9/1/34 | | | 4,400,000 | | | | 5,903,392 | |
Series A 5.00% 9/1/46 | | | 2,500,000 | | | | 3,528,875 | |
M-S-R Energy Authority, California Gas Revenue | | | | | | | | |
Series A 6.125% 11/1/29 | | | 1,890,000 | | | | 2,408,068 | |
Series B 6.50% 11/1/39 | | | 5,000,000 | | | | 7,965,650 | |
Series C 6.50% 11/1/39 | | | 1,500,000 | | | | 2,389,695 | |
New Jersey Economic Development Authority Revenue | | | | | | | | |
(Continental Airlines Project) | | | | | | | | |
Series B 5.625% 11/15/30 (AMT) | | | 1,365,000 | | | | 1,417,443 | |
30
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Corporate Revenue Bonds (continued) | | | | | | | | |
New York Liberty Development Revenue | | | | | | | | |
(Bank of America Tower At One Bryant Park Project) | | | | | | | | |
Class 3 2.80% 9/15/69 | | | 7,500,000 | | | $ | 7,214,550 | |
New York Transportation Development Corporation Special Facility Revenue | | | | | | | | |
(Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) | | | | | | | | |
Series 2018 4.00% 1/1/36 (AMT) | | | 910,000 | | | | 920,665 | |
Public Authority for Colorado Energy Natural Gas Revenue | | | | | | | | |
6.50% 11/15/38 | | | 5,000,000 | | | | 7,972,150 | |
Salt Verde, Arizona Financial Senior Gas Revenue | | | | | | | | |
5.00% 12/1/37 | | | 1,600,000 | | | | 2,190,608 | |
Shoals, Indiana | | | | | | | | |
(National Gypsum Co. Project) | | | | | | | | |
7.25% 11/1/43 (AMT) | | | 1,940,000 | | | | 2,049,823 | |
St. John Baptist Parish, Louisiana | | | | | | | | |
(Marathon Oil Corporation Project) | | | | | | | | |
Series B-2 2.375% 6/1/37 • | | | 5,000,000 | | | | 5,072,250 | |
Tobacco Securitization Authority of Southern California | | | | | | | | |
(Capital Appreciation-2nd Subordinate Lien) | | | | | | | | |
Series C 0.558% 6/1/46 ^ | | | 10,570,000 | | | | 2,008,829 | |
(Capital Appreciation-3rd Subordinate Lien) | | | | | | | | |
Series D 0.307% 6/1/46 ^ | | | 1,740,000 | | | | 288,666 | |
Valparaiso, Indiana | | | | | | | | |
(Pratt Paper, LLC Project) | | | | | | | | |
7.00% 1/1/44 (AMT) | | | 1,780,000 | | | | 1,975,319 | |
Virginia Tobacco Settlement Financing | | | | | | | | |
(Capital Appreciation) | | | | | | | | |
Series C 2.419% 6/1/47 ^ | | | 31,035,000 | | | | 6,172,551 | |
Series D 2.545% 6/1/47 ^ | | | 22,300,000 | | | | 4,224,512 | |
| | | | | | | | |
| | | | | | | 106,063,459 | |
| | | | | | | | |
Education Revenue Bonds — 7.14% | | | | | | | | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(American Charter Schools Foundation Project) | | | | | | | | |
144A 6.00% 7/1/47 # | | | 1,385,000 | | | | 1,521,229 | |
Auburn University, Alabama General Fee Revenue | | | | | | | | |
Series A 5.00% 6/1/33 | | | 1,720,000 | | | | 2,186,860 | |
31
Schedules of investments
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
California Educational Facilities Authority Revenue | | | | | | | | |
(Loma Linda University) | | | | | | | | |
Series A 5.00% 4/1/47 | | | 1,000,000 | | | $ | 1,129,740 | |
(Stanford University) | | | | | | | | |
Series V-1 5.00% 5/1/49 | | | 6,325,000 | | | | 10,308,928 | |
Capital Trust Agency, Florida | | | | | | | | |
(Liza Jackson Preparatory School, Inc. Project) | | | | | | | | |
Series A 5.00% 8/1/40 | | | 300,000 | | | | 350,556 | |
Series A 5.00% 8/1/55 | | | 800,000 | | | | 914,216 | |
(University Bridge, LLC Student Housing Project) | | | | | | | | |
Series A 144A 5.25% 12/1/58 # | | | 1,750,000 | | | | 1,683,517 | |
District of Columbia Revenue | | | | | | | | |
(KIPP DC Issue) | | | | | | | | |
4.00% 7/1/44 | | | 500,000 | | | | 537,100 | |
4.00% 7/1/49 | | | 1,375,000 | | | | 1,470,205 | |
Illinois Finance Authority Revenue | | | | | | | | |
(University of Illinois at Chicago Project) | | | | | | | | |
Series A 5.00% 2/15/47 | | | 1,860,000 | | | | 1,781,062 | |
Series A 5.00% 2/15/50 | | | 540,000 | | | | 513,653 | |
Monroe County Industrial Development Revenue, New York | | | | | | | | |
(True North Rochester Preparatory Charter School Project) | | | | | | | | |
Series A 144A 5.00% 6/1/40 # | | | 1,000,000 | | | | 1,170,900 | |
Series A 144A 5.00% 6/1/59 # | | | 1,075,000 | | | | 1,232,982 | |
New Jersey Economic Development Authority | | | | | | | | |
(Provident Group - Montclair State University) | | | | | | | | |
5.00% 6/1/42 (AGM) | | | 1,250,000 | | | | 1,449,512 | |
Pima County, Arizona Industrial Development Authority Education Revenue | | | | | | | | |
(American Leadership Academy Project) | | | | | | | | |
144A 5.00% 6/15/52 # | | | 560,000 | | | | 561,187 | |
University of Texas System Board of Regents | | | | | | | | |
Series B 5.00% 8/15/49 | | | 10,000,000 | | | | 16,178,300 | |
Utah Charter School Finance Authority Revenue | | | | | | | | |
(Wallace Stegner Academy Project) | | | | | | | | |
Series A 144A 5.00% 6/15/49 # | | | 1,590,000 | | | | 1,635,935 | |
| | | | | | | | |
| | | | | | | 44,625,882 | |
| | | | | | | | |
Electric Revenue Bonds — 3.60% | | | | | | | | |
Electric and Gas Systems Revenue San Antonio, Texas | | | | | | | | |
5.25% 2/1/24 | | | 2,500,000 | | | | 2,921,250 | |
32
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Electric Revenue Bonds (continued) | | | | | | | | |
Long Island, New York Power Authority Electric System Revenue | | | | | | | | |
5.00% 9/1/47 | | | 1,605,000 | | | $ | 1,936,609 | |
Municipal Electric Authority of Georgia | | | | | | | | |
(Plant Vogtle Units 3 & 4 Project) | | | | | | | | |
Series A 5.00% 1/1/56 | | | 2,600,000 | | | | 3,137,524 | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.05% 7/1/42 ‡ | | | 130,000 | | | | 89,700 | |
Series A 6.75% 7/1/36 ‡ | | | 500,000 | | | | 352,500 | |
Series AAA 5.25% 7/1/25 ‡ | | | 75,000 | | | | 51,844 | |
Series CCC 5.25% 7/1/27 ‡ | | | 2,570,000 | | | | 1,776,513 | |
Series TT 5.00% 7/1/32 ‡ | | | 3,165,000 | | | | 2,183,850 | |
Series WW 5.00% 7/1/28 ‡ | | | 400,000 | | | | 276,000 | |
Series XX 4.75% 7/1/26 ‡ | | | 265,000 | | | | 181,525 | |
Series XX 5.25% 7/1/40 ‡ | | | 1,285,000 | | | | 888,256 | |
Series XX 5.75% 7/1/36 ‡ | | | 940,000 | | | | 655,650 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 210,000 | | | | 143,850 | |
Series ZZ 5.25% 7/1/24 ‡ | | | 105,000 | | | | 72,581 | |
Salt River, Arizona Project Agricultural Improvement
& Power District Electric Systems Revenue | | | | | | | | |
(Salt River Project Electric System) | | | | | | | | |
Series A 5.00% 1/1/30 | | | 6,000,000 | | | | 7,812,120 | |
| | | | | | | | |
| | | | | | | 22,479,772 | |
| | | | | | | | |
Healthcare Revenue Bonds — 13.53% | | | | | | | | |
Alachua County, Florida Health Facilities Authority | | | | | | | | |
(Oak Hammock University) | | | | | | | | |
Series A 8.00% 10/1/42 | | | 1,000,000 | | | | 1,098,310 | |
Allegheny County, Pennsylvania Hospital Development Authority Revenue | | | | | | | | |
(Allegheny Health Network Obligated Group Issue) | | | | | | | | |
Series A 5.00% 4/1/47 | | | 1,800,000 | | | | 2,132,820 | |
Apple Valley, Minnesota | | | | | | | | |
(Senior Living, LLC Project Fourth Tier) | | | | | | | | |
Series D 7.25% 1/1/52 | | | 2,500,000 | | | | 1,892,875 | |
(Senior Living, LLC Project Second Tier) | | | | | | | | |
Series B 5.00% 1/1/47 | | | 2,500,000 | | | | 1,659,225 | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(Great Lakes Senior Living Communities LLC Project) | | | | | | | | |
Series A 5.00% 1/1/54 | | | 1,070,000 | | | | 937,192 | |
33
Schedules of investments
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(Legacy Cares, Inc. Project) | | | | | | | | |
Series A 144A 7.75% 7/1/50 # | | | 5,330,000 | | | $ | 5,274,088 | |
(Phoenix Children’s Hospital) | | | | | | | | |
Series A 4.00% 2/1/50 | | | 1,700,000 | | | | 1,936,436 | |
(Second Tier - Great Lakes Senior Living Communities LLC Project) | | | | | | | | |
Series B 5.00% 1/1/49 | | | 400,000 | | | | 336,740 | |
Series B 5.125% 1/1/54 | | | 470,000 | | | | 396,807 | |
Brookhaven Development Authority Revenue, Georgia | | | | | | | | |
(Children’s Healthcare of Atlanta) | | | | | | | | |
Series A 4.00% 7/1/49 | | | 1,810,000 | | | | 2,045,734 | |
California Health Facilities Financing Authority Revenue | | | | | | | | |
(Kaiser Permanente) | | | | | | | | |
Series A-2 5.00% 11/1/47 | | | 2,105,000 | | | | 3,287,336 | |
(Sutter Health) | | | | | | | | |
Series A 5.00% 11/15/38 | | | 1,000,000 | | | | 1,220,010 | |
California Municipal Finance Authority Revenue | | | | | | | | |
(Community Medical Centers) | | | | | | | | |
Series A 5.00% 2/1/42 | | | 2,550,000 | | | | 2,950,070 | |
Colorado Health Facilities Authority Revenue | | | | | | | | |
(AdventHealth Obligated Group) | | | | | | | | |
Series A 4.00% 11/15/43 | | | 3,000,000 | | | | 3,432,390 | |
(American Baptist) | | | | | | | | |
8.00% 8/1/43 | | | 2,040,000 | | | | 2,169,907 | |
(Cappella of Grand Junction Project) | | | | | | | | |
144A 5.00% 12/1/54 # | | | 2,100,000 | | | | 2,049,390 | |
(CommonSpirit Health) | | | | | | | | |
Series A-2 4.00% 8/1/49 | | | 3,750,000 | | | | 4,134,150 | |
Series A-2 5.00% 8/1/44 | | | 3,000,000 | | | | 3,617,760 | |
(Mental Health Center Denver Project) | | | | | | | | |
Series A 5.75% 2/1/44 | | | 1,875,000 | | | | 1,989,113 | |
Cuyahoga County, Ohio | | | | | | | | |
(The Metro Health System) | | | | | | | | |
5.25% 2/15/47 | | | 2,235,000 | | | | 2,569,848 | |
5.50% 2/15/57 | | | 3,000,000 | | | | 3,461,670 | |
Maricopa County, Arizona Industrial Development
Authority Senior Living Facility Revenue Bonds | | | | | | | | |
(Christian Care Surprise, Inc. Project) | | | | | | | | |
144A 6.00% 1/1/48 # | | | 1,195,000 | | | | 1,155,971 | |
34
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Maryland Health & Higher Educational Facilities Authority Revenue | | | | | | | | |
(Adventist Healthcare Obligated) | | | | | | | | |
Series A 5.50% 1/1/46 | | | 2,000,000 | | | $ | 2,224,520 | |
Montgomery County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(Foulkeways At Gwynedd Project) | | | | | | | | |
5.00% 12/1/46 | | | 1,500,000 | | | | 1,578,615 | |
Moon, Pennsylvania Industrial Development Authority | | | | | | | | |
(Baptist Homes Society Obligation) | | | | | | | | |
6.125% 7/1/50 | | | 2,250,000 | | | | 2,334,780 | |
New York State Dormitory Authority | | | | | | | | |
(Orange Regional Medical Center) | | | | | | | | |
144A 5.00% 12/1/34 # | | | 400,000 | | | | 465,412 | |
144A 5.00% 12/1/35 # | | | 1,200,000 | | | | 1,391,520 | |
144A 5.00% 12/1/37 # | | | 800,000 | | | | 921,392 | |
Orange County, New York Funding Corporation Assisted Living Residence Revenue | | | | | | | | |
6.50% 1/1/46 | | | 3,000,000 | | | | 3,006,690 | |
Oregon Health & Science University Revenue | | | | | | | | |
(Capital Appreciation Insured) | | | | | | | | |
Series A 10.285% 7/1/21 (NATL)^ | | | 400,000 | | | | 399,104 | |
Palm Beach County, Florida Health Facilities Authority | | | | | | | | |
(Sinai Residences Boca Raton Project) | | | | | | | | |
Series A 7.25% 6/1/34 | | | 120,000 | | | | 128,156 | |
Series A 7.50% 6/1/49 | | | 610,000 | | | | 649,833 | |
Pennsylvania Economic Development Financing Authority First Mortgage Revenue | | | | | | | | |
(Tapestry Moon Senior Housing Project) | | | | | | | | |
Series A 144A 6.50% 12/1/38 # | | | 1,785,000 | | | | 1,754,852 | |
Series A 144A 6.75% 12/1/53 # | | | 3,115,000 | | | | 3,018,497 | |
Pennsylvania Higher Educational Facilities Authority Revenue | | | | | | | | |
(Thomas Jefferson University) | | | | | | | | |
Series A 5.00% 9/1/45 | | | 2,000,000 | | | | 2,265,120 | |
(University Of Pennsylvania Health System) | | | | | | | | |
4.00% 8/15/49 | | | 5,000,000 | | | | 5,701,600 | |
Rochester, Minnesota | | | | | | | | |
(The Homestead at Rochester) | | | | | | | | |
Series A 6.875% 12/1/48 | | | 2,350,000 | | | | 2,528,412 | |
35
Schedules of investments
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Seminole County, Florida Industrial Development Authority Revenue | | | | | | | | |
(Legacy Pointe at UCF Project) | | | | | | | | |
Series A 5.50% 11/15/49 | | | 2,000,000 | | | $ | 1,824,460 | |
Tarrant County, Texas Cultural Education Facilities Finance Corporation Retirement Facility Revenue | | | | | | | | |
(Buckner Senior Living - Ventana Project) | | | | | | | | |
6.625% 11/15/37 | | | 1,000,000 | | | | 1,090,890 | |
Tempe, Arizona Industrial Development Authority Revenue | | | | | | | | |
(Friendship Village) | | | | | | | | |
Series A 6.25% 12/1/46 | | | 1,000,000 | | | | 1,014,230 | |
(Mirabella At ASU Project) | | | | | | | | |
Series A 144A 6.125% 10/1/52 # | | | 1,290,000 | | | | 1,326,030 | |
Washington State Housing Finance Commission | | | | | | | | |
(Heron’s Key Senior Living) | | | | | | | | |
Series A 144A 7.00% 7/1/45 # | | | 1,125,000 | | | | 1,212,401 | |
| | | | | | | | |
| | | | | | | 84,584,356 | |
| | | | | | | | |
Lease Revenue Bonds — 1.89% | | | | | | | | |
Metropolitan Pier & Exposition Authority, Illinois | | | | | | | | |
(McCormick Place Expansion Project) | | | | | | | | |
Series A 4.00% 6/15/50 | | | 1,000,000 | | | | 1,027,310 | |
Series A 5.00% 6/15/50 | | | 1,000,000 | | | | 1,127,190 | |
Series A 5.00% 6/15/57 | | | 1,620,000 | | | | 1,781,239 | |
New Jersey Economic Development Authority | | | | | | | | |
(State Government Buildings Project) | | | | | | | | |
Series A 5.00% 6/15/47 | | | 2,250,000 | | | | 2,557,620 | |
New Jersey Transportation Trust Fund Authority | | | | | | | | |
(Transportation Program) | | | | | | | | |
Series AA 5.00% 6/15/24 | | | 5,000,000 | | | | 5,318,800 | |
| | | | | | | | |
| | | | | | | 11,812,159 | |
| | | | | | | | |
Local General Obligation Bonds — 6.55% | | | | | | | | |
Chicago, Illinois | | | | | | | | |
Series A 5.25% 1/1/29 | | | 2,020,000 | | | | 2,182,166 | |
Series A 5.50% 1/1/49 | | | 1,000,000 | | | | 1,134,880 | |
Series A 6.00% 1/1/38 | | | 525,000 | | | | 606,007 | |
Chicago, Illinois Board of Education | | | | | | | | |
5.00% 4/1/42 | | | 1,060,000 | | | | 1,158,358 | |
5.00% 4/1/46 | | | 1,085,000 | | | | 1,178,896 | |
Honolulu City & County, Hawaii | | | | | | | | |
Series C 4.00% 7/1/39 | | | 1,205,000 | | | | 1,457,243 | |
Series C 4.00% 7/1/40 | | | 1,345,000 | | | | 1,614,914 | |
36
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Local General Obligation Bonds (continued) | | | | | | | | |
Honolulu City & County, Hawaii | | | | | | | | |
Series C 4.00% 7/1/41 | | | 1,000,000 | | | $ | 1,196,430 | |
Los Angeles, California Community College District | | | | | | | | |
Series C 5.00% 8/1/25 | | | 2,500,000 | | | | 3,089,750 | |
Mecklenburg County, North Carolina | | | | | | | | |
Series A 5.00% 4/1/25 | | | 2,500,000 | | | | 3,039,200 | |
Series A 5.00% 9/1/25 | | | 8,000,000 | | | | 9,866,720 | |
New York City, New York | | | | | | | | |
Series E-1 5.00% 3/1/44 | | | 5,000,000 | | | | 6,018,200 | |
Series F-1 5.00% 4/1/45 | | | 5,355,000 | | | | 6,445,599 | |
Subseries D-1 4.00% 12/1/42 | | | 1,700,000 | | | | 1,936,895 | |
Subseries D-1 5.00% 10/1/36 | | | 30,000 | | | | 31,356 | |
| | | | | | | | |
| | | | | | | 40,956,614 | |
| | | | | | | | |
Pre-Refunded/Escrowed to Maturity Bonds — 5.20% | | | | | | | | |
Central Texas Regional Mobility Authority Revenue | | | | | | | | |
Senior Lien 6.00% 1/1/41-21 § | | | 1,680,000 | | | | 1,712,407 | |
Illinois Railsplitter Tobacco Settlement Authority | | | | | | | | |
6.00% 6/1/28-21 § | | | 6,000,000 | | | | 6,261,060 | |
Louisiana Public Facilities Authority Revenue | | | | | | | | |
(Ochsner Clinic Foundation Project) | | | | | | | | |
6.50% 5/15/37-21 § | | | 2,190,000 | | | | 2,286,207 | |
New York City, New York | | | | | | | | |
Subseries D-1 5.00% 10/1/36-21 § | | | 5,000,000 | | | | 5,256,100 | |
Oklahoma State Turnpike Authority Revenue | | | | | | | | |
(First Senior) | | | | | | | | |
6.00% 1/1/22 | | | 13,535,000 | | | | 14,564,337 | |
Southwestern Illinois Development Authority Revenue | | | | | | | | |
(Memorial Group) | | | | | | | | |
7.125% 11/1/43-23 § | | | 2,000,000 | | | | 2,420,320 | |
| | | | | | | | |
| | | | | | | 32,500,431 | |
| | | | | | | | |
Special Tax Revenue Bonds — 14.94% | | | | | | | | |
Allentown, Pennsylvania Neighborhood Improvement Zone Development Authority Tax Revenue | | | | | | | | |
(City Center Project) | | | | | | | | |
144A 5.375% 5/1/42 # | | | 1,525,000 | | | | 1,599,542 | |
Conley Road Transportation Development District, Missouri | | | | | | | | |
5.375% 5/1/47 | | | 2,000,000 | | | | 2,009,240 | |
GDB Debt Recovery Authority of Puerto Rico | | | | | | | | |
7.50% 8/20/40 | | | 5,946,113 | | | | 4,080,520 | |
37
Schedules of investments
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Massachusetts School Building Authority | | | | | | | | |
Series C 5.00% 8/15/31 | | | 2,500,000 | | | $ | 3,027,625 | |
Mosaic, Virginia District Community Development Authority Revenue | | | | | | | | |
Series A 6.875% 3/1/36 | | | 3,980,000 | | | | 4,041,690 | |
New Jersey Economic Development Authority Revenue | | | | | | | | |
(Cigarette Tax) | | | | | | | | |
5.00% 6/15/28 | | | 2,695,000 | | | | 2,765,043 | |
New York City, New York Industrial Development Agency | | | | | | | | |
(Yankee Stadium) | | | | | | | | |
7.00% 3/1/49 (AGC) | | | 1,000,000 | | | | 1,005,540 | |
New York City, New York Transitional Finance Authority | | | | | | | | |
(Future Tax Secured Fiscal 2011) | | | | | | | | |
Series C 5.25% 11/1/25 | | | 4,430,000 | | | | 4,467,389 | |
Series D-1 5.00% 2/1/26 | | | 3,000,000 | | | | 3,059,040 | |
(Future Tax Secured Fiscal 2014) | | | | | | | | |
Series A-1 5.00% 11/1/42 | | | 10,000,000 | | | | 11,212,900 | |
Public Finance Authority, Wisconsin | | | | | | | | |
(American Dream @ Meadowlands Project) | | | | | | | | |
144A 7.00% 12/1/50 # | | | 2,155,000 | | | | 1,873,406 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.55% 7/1/40 | | | 1,456,000 | | | | 1,550,611 | |
Series A-1 4.75% 7/1/53 | | | 10,423,000 | | | | 10,954,990 | |
Series A-1 5.00% 7/1/58 | | | 9,965,000 | | | | 10,639,630 | |
Series A-1 5.303% 7/1/46 ^ | | | 33,250,000 | | | | 9,538,428 | |
Series A-2 4.329% 7/1/40 | | | 7,234,000 | | | | 7,595,772 | |
Series A-2 4.329% 7/1/40 | | | 2,500,000 | | | | 2,625,025 | |
Series A-2 4.784% 7/1/58 | | | 8,000,000 | | | | 8,426,480 | |
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | | | | | | | | |
(Sales Tax - Vacation Village Project Area 1 and 2A) | | | | | | | | |
Series 2015A 5.75% 9/1/32 | | | 3,280,000 | | | | 2,970,499 | |
| | | | | | | | |
| | | | | | | 93,443,370 | |
| | | | | | | | |
State General Obligation Bonds — 12.94% | | | | | | | | |
California State | | | | | | | | |
(Various Purpose) | | | | | | | | |
5.00% 8/1/27 | | | 2,500,000 | | | | 3,150,875 | |
5.00% 3/1/30 | | | 5,000,000 | | | | 5,993,500 | |
38
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
State General Obligation Bonds (continued) | | | | | | | | |
California State | | | | | | | | |
(Various Purpose) | | | | | �� | | | |
5.00% 4/1/32 | | | 1,400,000 | | | $ | 1,993,768 | |
5.00% 10/1/47 | | | 2,145,000 | | | | 2,586,312 | |
Commonwealth of Pennsylvania | | | | | | | | |
5.00% 9/15/26 | | | 2,500,000 | | | | 3,139,675 | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 5.25% 7/1/30 ‡ | | | 3,700,000 | | | | 2,640,875 | |
Series A 8.00% 7/1/35 ‡ | | | 4,615,000 | | | | 2,820,919 | |
Series B 5.00% 7/1/35 ‡ | | | 800,000 | | | | 569,000 | |
(Public Improvement) | | | | | | | | |
Series A 5.00% 7/1/24 ‡ | | | 1,180,000 | | | | 839,275 | |
Series A 5.00% 7/1/41 ‡ | | | 3,220,000 | | | | 2,016,525 | |
Series A 5.125% 7/1/37 ‡ | | | 1,330,000 | | | | 864,500 | |
Series A 5.25% 7/1/31 ‡ | | | 785,000 | | | | 560,294 | |
Series A 5.25% 7/1/34 ‡ | | | 970,000 | | | | 692,338 | |
Series A 5.375% 7/1/33 ‡ | | | 880,000 | | | | 621,500 | |
Series A 5.50% 7/1/39 ‡ | | | 1,785,000 | | | | 1,182,562 | |
Connecticut State | | | | | | | | |
Series B 5.00% 6/15/35 | | | 2,475,000 | | | | 2,884,167 | |
Series E 5.00% 9/15/35 | | | 2,500,000 | | | | 3,130,150 | |
Series E 5.00% 9/15/37 | | | 2,250,000 | | | | 2,797,943 | |
Florida State | | | | | | | | |
(Department Of Transportation Right-of-Way Acquisition and Bridge Construction) | | | | | | | | |
Series A 4.00% 7/1/33 | | | 2,500,000 | | | | 3,057,075 | |
Series A 4.00% 7/1/34 | | | 3,660,000 | | | | 4,410,812 | |
Illinois State | | | | | | | | |
5.00% 5/1/36 | | | 480,000 | | | | 506,803 | |
5.00% 11/1/36 | | | 1,780,000 | | | | 1,937,922 | |
5.00% 2/1/39 | | | 830,000 | | | | 870,106 | |
5.50% 5/1/39 | | | 5,000,000 | | | | 5,847,300 | |
Series A 5.00% 4/1/38 | | | 785,000 | | | | 816,698 | |
Series D 5.00% 11/1/27 | | | 3,500,000 | | | | 3,955,315 | |
(Rebuild Illinois Program) | | | | | | | | |
Series B 4.00% 11/1/39 | | | 8,380,000 | | | | 8,564,695 | |
Maryland State | | | | | | | | |
Series A 5.00% 3/15/26 | | | 5,000,000 | | | | 6,275,550 | |
Series A 5.00% 3/15/28 | | | 3,000,000 | | | | 3,974,520 | |
39
Schedules of investments
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
State General Obligation Bonds (continued) | | | | | | | | |
Texas State | | | | | | | | |
(Transportation Commission Mobility) | | | | | | | | |
Series A 5.00% 10/1/33 | | | 1,755,000 | | | $ | 2,228,850 | |
| | | | | | | | |
| | | | | | | 80,929,824 | |
| | | | | | | | |
Transportation Revenue Bonds — 15.08% | | | | | | | | |
Chicago, Illinois Midway International Airport | | | | | | | | |
Series A 5.00% 1/1/28 (AMT) | | | 2,025,000 | | | | 2,254,797 | |
Chicago, Illinois O’Hare International Airport | | | | | | | | |
Series B 5.00% 1/1/33 | | | 2,345,000 | | | | 2,716,612 | |
Series D 5.25% 1/1/42 | | | 2,000,000 | | | | 2,355,000 | |
Chicago, Illinois Transit Authority Revenue | | | | | | | | |
Series A 4.00% 12/1/50 | | | 2,000,000 | | | | 2,202,300 | |
Series A 4.00% 12/1/55 | | | 1,750,000 | | | | 1,918,420 | |
Series A 5.00% 12/1/45 | | | 2,000,000 | | | | 2,411,340 | |
Grand Parkway, Texas Transportation Revenue | | | | | | | | |
(Grand Parkway System-First Tier Toll) | | | | | | | | |
Series C 4.00% 10/1/49 | | | 5,000,000 | | | | 5,824,450 | |
Harris County, Texas Toll Road Authority | | | | | | | | |
Senior Lien Series A 5.00% 8/15/27 | | | 3,750,000 | | | | 4,828,500 | |
Love Field Airport Modernization, Texas General Airport Revenue Bonds | | | | | | | | |
5.00% 11/1/35 (AMT) | | | 1,000,000 | | | | 1,157,020 | |
5.00% 11/1/36 (AMT) | | | 1,000,000 | | | | 1,153,620 | |
Metropolitan Transportation Authority Revenue, New York | | | | | | | | |
Series D 5.00% 11/15/33 | | | 1,485,000 | | | | 1,652,196 | |
Metropolitan Washington, D.C. Airports Authority Dulles Toll Road Revenue | | | | | | | | |
(Dulles Metrorail and Capital Improvement Projects) | | | | | | | | |
Series B 4.00% 10/1/49 | | | 4,280,000 | | | | 4,703,078 | |
New Jersey Turnpike Authority | | | | | | | | |
Series A 5.00% 1/1/28 | | | 5,000,000 | | | | 5,753,950 | |
New York Transportation Development Corporation Special Facilities Revenue | | | | | | | | |
(LaGuardia Airport Terminal B Redevelopment Project) | | | | | | | | |
Series A 5.00% 7/1/46 (AMT) | | | 3,000,000 | | | | 3,217,080 | |
North Texas Tollway Authority Revenue | | | | | | | | |
(Second Tier) Series A 5.00% 1/1/34 | | | 5,000,000 | | | | 5,813,000 | |
Series A 5.00% 1/1/43 | | | 7,000,000 | | | | 8,542,730 | |
40
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Transportation Revenue Bonds (continued) | | | | | | | | |
Port Authority of New York & New Jersey | | | | | | | | |
(Consolidated Bonds) | | | | | | | | |
Series 221 4.00% 7/15/45 (AMT) | | | 1,500,000 | | | $ | 1,682,100 | |
Port Authority of New York & New Jersey Special Project | | | | | | | | |
(JFK International Air Terminal) | | | | | | | | |
Series 8 6.00% 12/1/42 | | | 4,735,000 | | | | 4,792,909 | |
Series 8 6.50% 12/1/28 | | | 5,500,000 | | | | 5,573,865 | |
Salt Lake City, Utah Airport Revenue | | | | | | | | |
Series B 5.00% 7/1/42 | | | 3,350,000 | | | | 3,992,396 | |
South Jersey Port, New Jersey | | | | | | | | |
(Subordinated Marine Terminal) | | | | | | | | |
Series A 5.00% 1/1/49 | | | 450,000 | | | | 511,213 | |
Series B 5.00% 1/1/42 (AMT) | | | 450,000 | | | | 494,748 | |
Series B 5.00% 1/1/48 (AMT) | | | 1,035,000 | | | | 1,128,078 | |
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | | | | | | | | |
(LBJ Infrastructure) | | | | | | | | |
7.50% 6/30/33 | | | 1,560,000 | | | | 1,568,642 | |
(NTE Mobility Partners Segments 3 LLC Segment 3A and 3B Facility) | | | | | | | | |
6.75% 6/30/43 (AMT) | | | 2,490,000 | | | | 2,840,219 | |
7.00% 12/31/38 (AMT) | | | 1,830,000 | | | | 2,103,548 | |
(NTE Mobility Partners Segments 3 LLC Segment 3C Project) | | | | | | | | |
5.00% 6/30/58 (AMT) | | | 10,000,000 | | | | 11,744,000 | |
Virginia Small Business Financing Authority Revenue | | | | | | | | |
(Transform 66 P3 Project) | | | | | | | | |
5.00% 12/31/56 (AMT) | | | 1,220,000 | | | | 1,372,793 | |
| | | | | | | | |
| | | | | | | 94,308,604 | |
| | | | | | | | |
Water & Sewer Revenue Bond — 0.39% | | | | | | | | |
Guam Government Waterworks Authority | | | | | | | | |
Series A 5.00% 1/1/50 | | | 2,000,000 | | | | 2,434,520 | |
| | | | | | | | |
| | | | | | | 2,434,520 | |
| | | | | | | | |
Total Municipal Bonds (cost $571,056,612) | | | | | | | 614,138,991 | |
| | | | | | | | |
41
Schedules of investments
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Short-Term Investments — 0.86% | | | | | | | | |
Variable Rate Demand Notes — 0.86%¤ | | | | | | | | |
Minneapolis & St. Paul, Minnesota Housing & Redevelopment Authority Health Care Revenue | | | | | | | | |
(Allina Health System) | | | | | | | | |
Series B-2 0.02% 11/15/35 (LOC - JPMorgan Chase Bank N.A.) | | | 300,000 | | | $ | 300,000 | |
Mississippi Business Finance Corporation Gulf Opportunity Zone Industrial Development Revenue | | | | | | | | |
(Chevron USA Project) | | | | | | | | |
Series B 0.03% 12/1/30 | | | 1,760,000 | | | | 1,760,000 | |
Series C 0.03% 12/1/30 | | | 230,000 | | | | 230,000 | |
Series F 0.03% 12/1/30 | | | 400,000 | | | | 400,000 | |
Series G 0.03% 11/1/35 | | | 2,445,000 | | | | 2,445,000 | |
Series K 0.03% 11/1/35 | | | 200,000 | | | | 200,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $5,335,000) | | | | | | | 5,335,000 | |
| | | | | | | | |
Total Value of Securities — 99.08%
(cost $576,391,612) | | | | | | $ | 619,473,991 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $43,294,738, which represents 6.92% of the Fund’s net assets. See Note 9 in “Notes to financial statements.” |
| • | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
| ‡ | Non-income producing security. Security is currently in default. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 9 in “Notes to financial statements.” |
42
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
KIPP – Knowledge is Power Program
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
LOC – Letter of Credit
N.A. – National Association
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
43
| | |
| Schedules of investments | | |
| Delaware Tax-Free USA Intermediate Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds — 96.82% | | | | | | | | |
Corporate Revenue Bonds — 13.55% | | | | | | | | |
Black Belt Energy Gas District, Alabama | | | | | | | | |
(Project No. 4) | | | | | | | | |
Series A 4.00% 6/1/25 | | | 1,655,000 | | | $ | 1,905,104 | |
Buckeye, Ohio Tobacco Settlement Financing Authority | | | | | | | | |
Series A-2 4.00% 6/1/38 | | | 420,000 | | | | 489,497 | |
Series A-2 5.00% 6/1/32 | | | 1,270,000 | | | | 1,660,919 | |
Series A-2 5.00% 6/1/33 | | | 850,000 | | | | 1,102,730 | |
Series A-2 5.00% 6/1/35 | | | 850,000 | | | | 1,092,055 | |
Chandler, Arizona Industrial Development Revenue Bonds | | | | | | | | |
(Intel Corporation Project) | | | | | | | | |
2.70% 12/1/37 (AMT)• | | | 3,000,000 | | | | 3,161,130 | |
Commonwealth of Pennsylvania Financing Authority | | | | | | | | |
(Tobacco Master Settlement Payment) | | | | | | | | |
5.00% 6/1/27 | | | 2,000,000 | | | | 2,522,280 | |
Denver City & County, Colorado Special Facilities Airport Revenue | | | | | | | | |
(United Airlines Project) | | | | | | | | |
5.00% 10/1/32 (AMT) | | | 1,190,000 | | | | 1,204,232 | |
Florida Development Finance Corporation Surface Transportation Facility Revenue | | | | | | | | |
(Virgin Trains USA Passenger Rail Project) | | | | | | | | |
Series A 144A 6.50% 1/1/49 (AMT)#, • | | | 1,710,000 | | | | 1,482,091 | |
Golden State, California Tobacco Securitization Corporate Settlement Revenue | | | | | | | | |
(Asset-Backed Bonds) | | | | | | | | |
Series A-1 5.00% 6/1/26 | | | 850,000 | | | | 1,037,824 | |
Series A-1 5.25% 6/1/47 | | | 750,000 | | | | 773,558 | |
(Capital Appreciation-Asset-Backed) | | | | | | | | |
Series B 1.548% 6/1/47^ | | | 5,885,000 | | | | 1,242,500 | |
Houston, Texas Airport System Revenue | | | | | | | | |
(United Airlines) | | | | | | | | |
5.00% 7/1/29 (AMT) | | | 3,010,000 | | | | 3,119,534 | |
Kentucky Public Energy Authority | | | | | | | | |
(Gas Supply Revenue Bonds) | | | | | | | | |
Series C-1 4.00% 12/1/49 • | | | 5,000,000 | | | | 5,659,050 | |
Lower Alabama Gas District | | | | | | | | |
Series A 5.00% 9/1/34 | | | 4,850,000 | | | | 6,507,148 | |
Michigan Tobacco Settlement Finance Authority | | | | | | | | |
Series A 6.00% 6/1/34 | | | 810,000 | | | | 812,365 | |
M-S-R Energy Authority, California Gas Revenue | | | | | | | | |
Series B 6.50% 11/1/39 | | | 3,485,000 | | | | 5,552,058 | |
44
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Corporate Revenue Bonds (continued) | | | | | | | | |
New Jersey Economic Development Authority Special Facilities Revenue | | | | | | | | |
(Continental Airlines Project) | | | | | | | | |
Series B 5.625% 11/15/30 (AMT) | | | 1,890,000 | | | $ | 1,962,614 | |
New Jersey Tobacco Settlement Financing | | | | | | | | |
Subordinate Series B 5.00% 6/1/46 | | | 3,105,000 | | | | 3,519,828 | |
New York Liberty Development Revenue | | | | | | | | |
(Bank of America Tower at One Bryant Park Project) | | | | | | | | |
2.80% 9/15/69 | | | 3,850,000 | | | | 3,703,469 | |
(Goldman Sachs Headquarters) | | | | | | | | |
5.25% 10/1/35 | | | 3,405,000 | | | | 4,752,052 | |
Salt Verde, Arizona Financial Corporation Senior Gas Revenue | | | | | | | | |
5.00% 12/1/32 | | | 3,850,000 | | | | 5,074,839 | |
5.00% 12/1/37 | | | 2,500,000 | | | | 3,422,825 | |
5.25% 12/1/24 | | | 3,050,000 | | | | 3,574,600 | |
St. James Parish, Louisiana | | | | | | | | |
(NuStar Logistics, LP Project) | | | | | | | | |
144A 6.10% 6/1/38 #, • | | | 385,000 | | | | 455,852 | |
Series A 144A 6.35% 10/1/40 # | | | 1,630,000 | | | | 1,940,922 | |
Series B 144A 6.10% 12/1/40 #, • | | | 385,000 | | | | 455,852 | |
St. John Baptist Parish, Louisiana | | | | | | | | |
(Marathon Oil Corporation Project) | | | | | | | | |
Series B-2 2.125% 6/1/37 • | | | 2,250,000 | | | | 2,264,445 | |
TSASC, New York | | | | | | | | |
Series A 5.00% 6/1/30 | | | 475,000 | | | | 573,838 | |
Series A 5.00% 6/1/31 | | | 475,000 | | | | 570,831 | |
Virginia Tobacco Settlement Financing Corporation | | | | | | | | |
(Capital Appreciation Asset-Backed) | | | | | | | | |
Series C 2.419% 6/1/47 ^ | | | 29,400,000 | | | | 5,847,366 | |
| | | | | | | | |
| | | | | | | 77,443,408 | |
| | | | | | | | |
Education Revenue Bonds — 5.05% | | | | | | | | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(American Charter Schools Foundation Project) | | | | | | | | |
144A 6.00% 7/1/37 # | | | 1,420,000 | | | | 1,584,592 | |
Bucks County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(School Lane Charter School Project) | | | | | | | | |
5.125% 3/15/36 | | | 2,000,000 | | | | 2,241,980 | |
California Educational Facilities Authority Revenue | | | | | | | | |
(Stanford University) | | | | | | | | |
Series V-1 5.00% 5/1/49 | | | 1,000,000 | | | | 1,629,870 | |
45
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
California State University | | | | | | | | |
(Systemwide) | | | | | | | | |
Series A 5.00% 11/1/31 | | | 2,000,000 | | | $ | 2,529,040 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(California Baptist University) | | | | | | | | |
Series A 6.125% 11/1/33 | | | 2,215,000 | | | | 2,420,242 | |
(Green Dot Public Schools - Animo Inglewood Charter High School Project) | | | | | | | | |
Series A 7.25% 8/1/41 | | | 500,000 | | | | 520,660 | |
Colorado Educational & Cultural Facilities Authority Revenue | | | | | | | | |
(Rocky Mountain Classical Academy Project) | | | | | | | | |
144A 5.00% 10/1/29 # | | | 425,000 | | | | 460,666 | |
144A 5.00% 10/1/39 # | | | 425,000 | | | | 446,156 | |
144A 5.00% 10/1/49 # | | | 990,000 | | | | 1,025,155 | |
Illinois Finance Authority Revenue | | | | | | | | |
(University of Illinois at Chicago) | | | | | | | | |
Series A 5.00% 2/15/26 | | | 400,000 | | | | 416,828 | |
Series A 5.00% 2/15/29 | | | 400,000 | | | | 412,540 | |
Series A 5.00% 2/15/31 | | | 365,000 | | | | 372,508 | |
Series A 5.00% 2/15/37 | | | 430,000 | | | | 429,987 | |
Kent County, Delaware | | | | | | | | |
(Delaware State University Project) | | | | | | | | |
Series A 5.00% 7/1/40 | | | 310,000 | | | | 299,758 | |
Miami-Dade County, Florida Educational Facilities Authority | | | | | | | | |
(University of Miami) | | | | | | | | |
Series A 5.00% 4/1/30 | | | 520,000 | | | | 594,844 | |
Series A 5.00% 4/1/31 | | | 1,090,000 | | | | 1,242,589 | |
New York City, New York Trust for Cultural Resources | | | | | | | | |
(Whitney Museum of American Art) | | | | | | | | |
5.00% 7/1/21 | | | 3,025,000 | | | | 3,068,348 | |
New York State Dormitory Authority Revenue | | | | | | | | |
(Touro College & University System) | | | | | | | | |
Series A 5.25% 1/1/34 | | | 1,335,000 | | | | 1,421,828 | |
Phoenix, Arizona Industrial Development Authority Housing Revenue | | | | | | | | |
(Downtown Phoenix Student Housing, LLC-Arizona State University Project) | | | | | | | | |
Series A 5.00% 7/1/30 | | | 350,000 | | | | 386,176 | |
Series A 5.00% 7/1/32 | | | 235,000 | | | | 256,594 | |
46
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
Pima County, Arizona Industrial Development Authority Education Revenue | | | | | | | | |
(Facility American Leadership Academy Project) | | | | | | | | |
144A 5.00% 6/15/47 # | | | 745,000 | | | $ | 747,213 | |
144A 5.00% 6/15/52 # | | | 640,000 | | | | 641,357 | |
South Carolina Jobs - Economic Development Authority Educational Facilities Revenue | | | | | | | | |
(High Point Academy Project) | | | | | | | | |
Series A 144A 5.75% 6/15/39 # | | | 1,245,000 | | | | 1,367,135 | |
University of Texas Permanent University Fund | | | | | | | | |
Series B 5.00% 7/1/27 | | | 3,715,000 | | | | 4,334,699 | |
| | | | | | | | |
| | | | | | | 28,850,765 | |
| | | | | | | | |
Electric Revenue Bonds — 4.35% | | | | | | | | |
Long Island, New York Power Authority | | | | | | | | |
5.00% 9/1/33 | | | 250,000 | | | | 311,255 | |
5.00% 9/1/35 | | | 1,000,000 | | | | 1,237,130 | |
Municipal Electric Authority of Georgia | | | | | | | | |
(Plant Vogtle Units 3&4 Project) | | | | | | | | |
Series A 4.00% 1/1/44 (AGM) | | | 2,250,000 | | | | 2,583,360 | |
Series A 5.00% 1/1/39 | | | 6,250,000 | | | | 7,652,500 | |
New York State Utility Debt Securitization Authority | | | | | | | | |
(Restructuring Bonds) | | | | | | | | |
5.00% 12/15/33 | | | 1,500,000 | | | | 1,821,855 | |
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue | | | | | | | | |
Series A 5.00% 12/1/35 | | | 4,000,000 | | | | 4,772,080 | |
(Salt River Project Electric System) | | | | | | | | |
5.00% 1/1/30 | | | 5,000,000 | | | | 6,510,100 | |
| | | | | | | | |
| | | | | | | 24,888,280 | |
| | | | | | | | |
Healthcare Revenue Bonds — 9.78% | | | | | | | | |
Apple Valley, Minnesota | | | | | | | | |
(Minnesota Senior Living LLC Project) | | | | | | | | |
Series B 5.25% 1/1/37 | | | 965,000 | | | | 739,103 | |
Arizona Health Facilities Authority | | | | | | | | |
(Scottsdale Lincoln Hospital Project) | | | | | | | | |
5.00% 12/1/30 | | | 5,000,000 | | | | 5,705,100 | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(Legacy Cares, Inc. Project) | | | | | | | | |
Series A 144A 7.75% 7/1/50# | | | 2,920,000 | | | | 2,889,369 | |
California Health Facilities Financing Authority | | | | | | | | |
(Kaiser Permanente) | | | | | | | | |
Series A-1 5.00% 11/1/27 | | | 4,100,000 | | | | 5,300,398 | |
47
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
California Statewide Communities Development Authority | | | | | | | | |
(Loma Linda University Medical Center) | | | | | | | | |
Series A 144A 5.00% 12/1/33 # | | | 260,000 | | | $ | 286,226 | |
Series A 144A 5.00% 12/1/41 # | | | 1,685,000 | | | | 1,839,767 | |
Series A 5.25% 12/1/34 | | | 2,790,000 | | | | 3,050,893 | |
Capital Trust Agency, Florida | | | | | | | | |
(Tuscan Gardens Senior Living Center) | | | | | | | | |
Series A 7.00% 4/1/35 | | | 1,630,000 | | | | 1,144,374 | |
Colorado Health Facilities Authority Revenue | | | | | | | | |
(CommonSpirit Health) | | | | | | | | |
Series A 4.00% 8/1/37 | | | 500,000 | | | | 565,380 | |
Series A 4.00% 8/1/38 | | | 500,000 | | | | 563,615 | |
Cuyahoga County, Ohio | | | | | | | | |
(The Metrohealth System) | | | | | | | | |
5.00% 2/15/37 | | | 1,000,000 | | | | 1,138,270 | |
Iowa Finance Authority Senior Housing Revenue Bonds | | | | | | | | |
(PHS Council Bluffs, Inc. Project) | | | | | | | | |
5.00% 8/1/33 | | | 500,000 | | | | 509,345 | |
Kalispell, Montana | | | | | | | | |
(Immanuel Lutheran Corporation Project) | | | | | | | | |
Series A 5.25% 5/15/32 | | | 435,000 | | | | 448,085 | |
Lancaster County, Pennsylvania Hospital Authority | | | | | | | | |
(Brethren Village Project) | | | | | | | | |
5.00% 7/1/31 | | | 440,000 | | | | 466,858 | |
5.00% 7/1/32 | | | 440,000 | | | | 463,896 | |
(University of Pennsylvania Health System Obligation) | | | | | | | | |
Series A 5.00% 8/15/33 | | | 2,430,000 | | | | 2,931,139 | |
Maricopa County, Arizona Industrial Development Authority Revenue | | | | | | | | |
(Banner Health Obligation Group) | | | | | | | | |
Series A 5.00% 1/1/32 | | | 3,000,000 | | | | 3,644,490 | |
(Christian Care Surprise, Inc. Project) | | | | | | | | |
144A 5.75% 1/1/36 # | | | 1,540,000 | | | | 1,556,940 | |
Maryland Health & Higher Educational Facilities Authority Revenue | | | | | | | | |
(Adventist Healthcare Obligated) | | | | | | | | |
Series A 5.50% 1/1/36 | | | 2,000,000 | | | | 2,265,800 | |
Massachusetts Development Finance Agency Revenue | | | | | | | | |
Series A-2 4.00% 7/1/40 | | | 1,000,000 | | | | 1,156,810 | |
48
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Massachusetts Development Finance Agency Revenue | | | | | | | | |
Series A-2 4.00% 7/1/41 | | | 875,000 | | | $ | 1,008,805 | |
Minneapolis, Minnesota Health Care System Revenue | | | | | | | | |
(Fairview Health Services) | | | | | | | | |
Series A 5.00% 11/15/35 | | | 1,500,000 | | | | 1,859,475 | |
Moon, Pennsylvania Industrial Development Authority | | | | | | | | |
(Baptist Homes Society Obligation) | | | | | | | | |
5.625% 7/1/30 | | | 2,440,000 | | | | 2,565,392 | |
New York State Dormitory Authority Revenue | | | | | | | | |
(Orange Regional Medical Center) | | | | | | | | |
144A 5.00% 12/1/31 # | | | 1,000,000 | | | | 1,178,140 | |
144A 5.00% 12/1/32 # | | | 1,100,000 | | | | 1,288,408 | |
144A 5.00% 12/1/33 # | | | 1,000,000 | | | | 1,167,050 | |
Oklahoma Development Finance Authority Health System Revenue | | | | | | | | |
(OU Medicine Project) | | | | | | | | |
Series B 5.25% 8/15/43 | | | 1,790,000 | | | | 2,099,473 | |
Prince George’s County, Maryland | | | | | | | | |
(Collington Episcopal Life Care Community) | | | | | | | | |
5.00% 4/1/31 | | | 2,000,000 | | | | 2,057,480 | |
Public Finance Authority, Wisconsin Senior Living Revenue | | | | | | | | |
(Mary’s Woods at Marylhurst Project) | | | | | | | | |
144A 5.00% 5/15/29 # | | | 500,000 | | | | 535,760 | |
Seminole County, Florida Industrial Development Authority | | | | | | | | |
(Legacy Pointe at UCF Project) | | | | | | | | |
Series A 5.25% 11/15/39 | | | 2,630,000 | | | | 2,440,588 | |
Series B-1 4.25% 11/15/26 | | | 1,000,000 | | | | 943,020 | |
Tempe, Arizona Industrial Development Authority | | | | | | | | |
(Mirabella at ASU Project) | | | | | | | | |
Series A 144A 6.00% 10/1/37 # | | | 1,200,000 | | | | 1,249,716 | |
Wisconsin Health & Educational Facilities Authority Revenue | | | | | | | | |
(St. Camillus Health System) | | | | | | | | |
Series A 5.00% 11/1/39 | | | 815,000 | | | | 862,221 | |
| | | | | | | | |
| | | | | | | 55,921,386 | |
| | | | | | | | |
49
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Lease Revenue Bonds — 4.65% | | | | | | | | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(Lancer Plaza Project) | | | | | | | | |
5.125% 11/1/23 | | | 330,000 | | | $ | 340,916 | |
Golden State, California Tobacco Securitization Corporate Settlement Revenue | | | | | | | | |
(Asset-Backed Enhanced) | | | | | | | | |
Series A 5.00% 6/1/35 | | | 3,000,000 | | | | 3,525,630 | |
Idaho Building Authority Revenue | | | | | | | | |
(Health & Welfare Project) | | | | | | | | |
Series A 5.00% 9/1/24 | | | 2,380,000 | | | | 2,598,198 | |
Los Angeles County, California | | | | | | | | |
(Disney Concert Hall Parking) | | | | | | | | |
5.00% 3/1/23 | | | 2,395,000 | | | | 2,667,336 | |
New Jersey State Economic Development Authority | | | | | | | | |
(NJ Transit Transportation Project) | | | | | | | | |
Series A 4.00% 11/1/38 | | | 1,000,000 | | | | 1,078,300 | |
Series A 4.00% 11/1/39 | | | 1,000,000 | | | | 1,076,780 | |
New Jersey State Transportation Trust Fund Authority | | | | | | | | |
Series B 5.50% 6/15/31 | | | 5,000,000 | | | | 5,131,800 | |
(Highway Reimbursement) | | | | | | | | |
Series A 5.00% 6/15/30 | | | 2,415,000 | | | | 2,792,199 | |
New York Liberty Development Revenue | | | | | | | | |
(World Trade Center Project) | | | | | | | | |
Class 2 144A 5.15% 11/15/34 # | | | 1,000,000 | | | | 1,058,300 | |
New York State Dormitory Authority Revenue | | | | | | | | |
(Health Facilities Improvement Program) | | | | | | | | |
Series 1 5.00% 1/15/28 | | | 750,000 | | | | 947,415 | |
Series 1 5.00% 1/15/29 | | | 3,100,000 | | | | 3,889,756 | |
Public Finance Authority, Wisconsin Airport Facilities Revenue | | | | | | | | |
(AFCO Investors II Portfolio) | | | | | | | | |
144A 5.00% 10/1/23 (AMT)# | | | 1,430,000 | | | | 1,470,483 | |
| | | | | | | | |
| | | | | | | 26,577,113 | |
| | | | | | | | |
Local General Obligation Bonds — 6.59% | | | | | | | | |
Chesterfield County, Virginia | | | | | | | | |
Series B 5.00% 1/1/22 | | | 4,070,000 | | | | 4,332,841 | |
Chicago, Illinois | | | | | | | | |
Series A 5.25% 1/1/29 | | | 640,000 | | | | 691,379 | |
Series A 5.50% 1/1/35 | | | 1,980,000 | | | | 2,320,818 | |
Series C 5.00% 1/1/26 | | | 1,280,000 | | | | 1,439,232 | |
50
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Local General Obligation Bonds (continued) | | | | | | | | |
Chicago, Illinois Board of Education | | | | | | | | |
5.00% 4/1/35 | | | 825,000 | | | $ | 909,100 | |
5.00% 4/1/36 | | | 320,000 | | | | 352,522 | |
(Dedicated Revenues) | | | | | | | | |
Series C 5.00% 12/1/34 | | | 2,160,000 | | | | 2,413,411 | |
Series D 5.00% 12/1/31 | | | 2,160,000 | | | | 2,442,463 | |
Fort Worth, Texas Independent School District | | | | | | | | |
(School Building) | | | | | | | | |
5.00% 2/15/27 (PSF) | | | 2,000,000 | | | | 2,329,560 | |
New York City, New York | | | | | | | | |
Series D-1 5.00% 10/1/30 | | | 2,260,000 | | | | 2,370,695 | |
Series E 5.00% 8/1/23 | | | 3,685,000 | | | | 4,168,545 | |
Subseries D-1 4.00% 12/1/42 | | | 4,300,000 | | | | 4,899,205 | |
San Francisco, California Bay Area Rapid Transit District | | | | | | | | |
(Election 2004) | | | | | | | | |
Series D 5.00% 8/1/31 | | | 4,000,000 | | | | 4,886,480 | |
Wake County, North Carolina | | | | | | | | |
Series A 5.00% 3/1/27 | | | 3,200,000 | | | | 4,129,472 | |
| | | | | | | | |
| | | | | | | 37,685,723 | |
| | | | | | | | |
Pre-Refunded/Escrowed to Maturity Bonds — 7.19% | | | | | | | | |
California State Department of Water Resources | | | | | | | | |
(Water System) | | | | | | | | |
Series AS 5.00% 12/1/29-24 § | | | 15,000 | | | | 17,952 | |
Series AS 5.00% 12/1/29-24 § | | | 2,680,000 | | | | 3,219,993 | |
Clifton, Texas Higher Education Finance Corporation Revenue | | | | | | | | |
(Uplift Education) | | | | | | | | |
Series A 6.00% 12/1/30-20 § | | | 1,100,000 | | | | 1,115,620 | |
New York City, New York | | | | | | | | |
Series D-1 5.00% 10/1/30-21 § | | | 1,740,000 | | | | 1,829,123 | |
New York State | | | | | | | | |
Series A 5.00% 2/15/28-21 § | | | 5,000,000 | | | | 5,110,400 | |
New York State Dormitory Authority Revenue | | | | | | | | |
(North Shore Long Island Jewish Health System) | | | | | | | | |
Series A 5.00% 5/1/23-21 § | | | 4,000,000 | | | | 4,128,120 | |
Oregon State | | | | | | | | |
Series L 5.00% 5/1/26-21 § | | | 6,000,000 | | | | 6,193,440 | |
51
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Pre-Refunded/Escrowed to Maturity Bonds (continued) | | | | | | | | |
Pennsylvania Higher Educational Facilities Authority Revenue | | | | | | | | |
(Drexel University) | | | | | | | | |
Series A 5.25% 5/1/25-21 § | | | 4,980,000 | | | $ | 5,148,822 | |
(Unrefunded Drexel University) | | | | | | | | |
Series A 5.25% 5/1/25-21 § | | | 310,000 | | | | 320,401 | |
Sacramento, California Water Revenue | | | | | | | | |
5.00% 9/1/26-23 § | | | 3,160,000 | | | | 3,604,865 | |
San Francisco, California City & County Airports Commission | | | | | | | | |
Series D 5.00% 5/1/25-21 § | | | 570,000 | | | | 588,491 | |
Southwestern Illinois Development Authority | | | | | | | | |
(Memorial Group) | | | | | | | | |
7.125% 11/1/30-23 § | | | 2,190,000 | | | | 2,650,250 | |
Texas State | | | | | | | | |
(Transportation Commission Highway Improvement) | | | | | | | | |
5.00% 4/1/29-24 § | | | 3,000,000 | | | | 3,509,970 | |
Virginia Commonwealth Transportation Board | | | | | | | | |
(Gans-Garvee) | | | | | | | | |
5.00% 3/15/24-23 § | | | 3,250,000 | | | | 3,644,420 | |
| | | | | | | | |
| | | | | | | 41,081,867 | |
| | | | | | | | |
Special Tax Revenue Bonds — 14.27% | | | | | | | | |
Allentown, Pennsylvania Neighborhood Improvement Zone Development
Authority Tax Revenue | | | | | | | | |
(City Center Project) | | | | | | | | |
144A 5.00% 5/1/28 # | | | 750,000 | | | | 833,535 | |
144A 5.00% 5/1/33 # | | | 650,000 | | | | 692,653 | |
Baltimore, Maryland | | | | | | | | |
(Senior Lien-Harbor Point Project) | | | | | | | | |
Series A 144A 3.25% 6/1/31 # | | | 95,000 | | | | 91,234 | |
Series A 144A 3.30% 6/1/32 # | | | 105,000 | | | | 99,580 | |
Series A 144A 3.35% 6/1/33 # | | | 110,000 | | | | 103,752 | |
Series A 144A 3.40% 6/1/34 # | | | 115,000 | | | | 108,102 | |
Series A 144A 3.45% 6/1/35 # | | | 130,000 | | | | 121,810 | |
Series A 144A 3.50% 6/1/39 # | | | 270,000 | | | | 250,949 | |
Celebration Pointe, Florida Community Development District | | | | | | | | |
4.75% 5/1/24 | | | 375,000 | | | | 394,796 | |
5.00% 5/1/34 | | | 830,000 | | | | 862,860 | |
Connecticut State Transportation Infrastructure | | | | | | | | |
Series B 5.00% 10/1/30 | | | 3,375,000 | | | | 4,335,221 | |
52
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Dallas, Texas Convention Center Hotel Development Revenue | | | | | | | | |
Series A 5.00% 1/1/24 | | | 3,420,000 | | | $ | 3,425,301 | |
Series A 5.25% 1/1/23 | | | 5,375,000 | | | | 5,384,353 | |
Denver, Colorado Convention Center Hotel Authority | | | | | | | | |
5.00% 12/1/26 | | | 1,270,000 | | | | 1,392,733 | |
5.00% 12/1/29 | | | 305,000 | | | | 330,467 | |
5.00% 12/1/31 | | | 460,000 | | | | 496,542 | |
5.00% 12/1/32 | | | 920,000 | | | | 991,475 | |
5.00% 12/1/34 | | | 765,000 | | | | 821,159 | |
5.00% 12/1/35 | | | 610,000 | | | | 653,792 | |
5.00% 12/1/36 | | | 460,000 | | | | 491,607 | |
Ernest N Morail-New Orleans, Louisiana Exhibition Hall Authority Special Tax Revenue | | | | | | | | |
5.00% 7/15/26 | | | 2,330,000 | | | | 2,497,178 | |
Harris County-Houston, Texas Sports Authority | | | | | | | | |
(Senior Lien) | | | | | | | | |
Series A 5.00% 11/15/30 | | | 1,805,000 | | | | 1,924,256 | |
Kansas City, Missouri Land Clearance Redevelopment Authority Revenue | | | | | | | | |
(Convention Center Hotel Project – TIF Financing) | | | | | | | | |
Series B 144A 4.375% 2/1/31 # | | | 400,000 | | | | 414,468 | |
Series B 144A 5.00% 2/1/40 # | | | 200,000 | | | | 209,718 | |
Louisiana State Highway Improvement Revenue | | | | | | | | |
Series A 5.00% 6/15/29 | | | 5,195,000 | | | | 6,011,238 | |
Massachusetts School Building Authority | | | | | | | | |
Series C 5.00% 8/15/29 | | | 1,630,000 | | | | 1,980,923 | |
Miami-Dade County, Florida Transit System Revenue | | | | | | | | |
Series B 2.60% 7/1/42 | | | 2,500,000 | | | | 2,459,800 | |
New Jersey Economic Development Authority Revenue | | | | | | | | |
(Cigarette Tax) | | | | | | | | |
5.00% 6/15/22 | | | 1,750,000 | | | | 1,817,813 | |
5.00% 6/15/23 | | | 1,250,000 | | | | 1,295,375 | |
New York City, New York Transitional Finance Authority Building Aid Revenue | | | | | | | | |
Subordinate Subseries S-3A 5.00% 7/15/28 | | | 4,400,000 | | | | 5,741,252 | |
New York City, New York Transitional Finance Authority Future Tax Secured | | | | | | | | |
Subseries A-1 5.00% 11/1/23 | | | 2,865,000 | | | | 3,283,892 | |
Subseries C 5.00% 11/1/27 | | | 4,150,000 | | | | 4,814,954 | |
Subseries E-1 5.00% 2/1/26 | | | 4,020,000 | | | | 4,283,109 | |
53
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
New York State Urban Development Revenue | | | | | | | | |
(General Purpose) | | | | | | | | |
Series C 5.00% 3/15/33 | | | 3,000,000 | | | $ | 3,984,840 | |
Public Finance Authority, Wisconsin | | | | | | | | |
(American Dream @ Meadowlands Project) | | | | | | | | |
144A 7.00% 12/1/50 # | | | 1,010,000 | | | | 878,023 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.55% 7/1/40 | | | 6,015,000 | | | | 6,405,855 | |
Series A-1 5.389% 7/1/46 ^ | | | 8,785,000 | | | | 2,520,153 | |
Series A-2 4.329% 7/1/40 | | | 1,125,000 | | | | 1,181,261 | |
Series A-2 4.329% 7/1/40 | | | 5,636,000 | | | | 5,917,856 | |
Richmond Heights, Missouri Tax Increment & Transaction Sales Tax Revenue Refunding & Improvement | | | | | | | | |
(Francis Place Redevelopment Project) | | | | | | | | |
5.625% 11/1/25 | | | 795,000 | | | | 795,095 | |
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | | | | | | | | |
(Sales Tax - Vacation Village Project Area 1 and 2A) | | | | | | | | |
Series 2015A 5.00% 9/1/27 | | | 1,355,000 | | | | 1,304,675 | |
| | | | | | | | |
| | | | | | | 81,603,655 | |
| | | | | | | | |
State General Obligation Bonds — 14.93% | | | | | | | | |
California State | | | | | | | | |
(Various Purpose) | | | | | | | | |
5.00% 8/1/26 | | | 3,120,000 | | | | 3,944,741 | |
5.00% 8/1/28 | | | 3,000,000 | | | | 3,989,730 | |
5.00% 9/1/30 | | | 1,715,000 | | | | 2,151,467 | |
5.00% 4/1/32 | | | 1,410,000 | | | | 2,008,009 | |
5.00% 9/1/32 | | | 4,100,000 | | | | 5,107,944 | |
5.25% 9/1/28 | | | 7,750,000 | | | | 8,128,510 | |
Series C 5.00% 9/1/30 | | | 5,985,000 | | | | 7,295,057 | |
Commonwealth of Massachusetts | | | | | | | | |
Series A 5.00% 1/1/35 | | | 7,500,000 | | | | 9,740,400 | |
Commonwealth of Pennsylvania | | | | | | | | |
5.00% 9/15/26 | | | 2,500,000 | | | | 3,139,675 | |
5.00% 7/15/28 | | | 3,870,000 | | | | 5,044,855 | |
Connecticut State | | | | | | | | |
Series F 5.00% 9/15/27 | | | 2,790,000 | | | | 3,564,839 | |
Hawaii State | | | | | | | | |
Series FW 4.00% 1/1/34 | | | 3,010,000 | | | | 3,611,699 | |
54
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
State General Obligation Bonds (continued) | | | | | | | | |
Illinois State | | | | | | | | |
5.00% 1/1/28 | | | 1,630,000 | | | $ | 1,810,995 | |
5.00% 3/1/36 | | | 960,000 | | | | 985,680 | |
5.00% 11/1/36 | | | 1,965,000 | | | | 2,139,335 | |
5.25% 2/1/30 | | | 1,295,000 | | | | 1,393,873 | |
5.25% 2/1/32 | | | 435,000 | | | | 464,972 | |
5.25% 2/1/33 | | | 270,000 | | | | 288,279 | |
5.50% 5/1/39 | | | 2,500,000 | | | | 2,923,650 | |
Series A 5.125% 12/1/29 | | | 1,770,000 | | | | 2,023,198 | |
Series B 4.00% 11/1/34 | | | 2,130,000 | | | | 2,216,286 | |
Series B 4.00% 11/1/35 | | | 2,200,000 | | | | 2,278,958 | |
Series D 5.00% 11/1/25 | | | 1,220,000 | | | | 1,351,882 | |
Oregon State | | | | | | | | |
(Article XI-Q State Projects) | | | | | | | | |
Series A 5.00% 5/1/28 | | | 2,000,000 | | | | 2,659,880 | |
Washington State | | | | | | | | |
Series R-2015E 5.00% 7/1/31 | | | 3,000,000 | | | | 3,583,230 | |
(Various Purpose) | | | | | | | | |
Series 2015-A-1 5.00% 8/1/30 | | | 3,000,000 | | | | 3,535,140 | |
| | | | | | | | |
| | | | | | | 85,382,284 | |
| | | | | | | | |
Transportation Revenue Bonds — 14.91% | | | | | | | | |
Bay Area, California Toll Authority | | | | | | | | |
(San Francisco Bay Area) | | | | | | | | |
Series S-7 4.00% 4/1/34 | | | 1,000,000 | | | | 1,159,940 | |
Chicago, Illinois Midway International Airport | | | | | | | | |
Series A 5.00% 1/1/28 (AMT) | | | 1,905,000 | | | | 2,121,179 | |
Chicago, Illinois O’Hare International Airport Revenue | | | | | | | | |
Series B 5.00% 1/1/32 | | | 1,000,000 | | | | 1,160,770 | |
Series B 5.00% 1/1/33 | | | 1,520,000 | | | | 1,760,874 | |
(General-Airport-Senior Lien) | | | | | | | | |
Series B 5.00% 1/1/36 | | | 2,500,000 | | | | 3,078,000 | |
Series B 5.00% 1/1/37 | | | 3,000,000 | | | | 3,680,010 | |
(General-Airport-Third Lien) | | | | | | | | |
Series C 5.25% 1/1/28 | | | 2,150,000 | | | | 2,158,385 | |
Dallas/Fort Worth International Airport, Texas | | | | | | | | |
Series A 4.00% 11/1/34 | | | 2,500,000 | | | | 2,996,325 | |
Series A 4.00% 11/1/35 | | | 1,000,000 | | | | 1,192,590 | |
Series B 4.00% 11/1/35 | | | 2,500,000 | | | | 2,981,475 | |
Hillsborough County, Florida Port District | | | | | | | | |
(Tampa Port Authority Project) | | | | | | | | |
Series B 5.00% 6/1/28 (AMT) | | | 375,000 | | | | 461,134 | |
55
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Transportation Revenue Bonds (continued) | | | | | | | | |
Houston, Texas Airports Commission Revenue | | | | | | | | |
Series B 5.00% 7/1/25 | | | 1,000,000 | | | $ | 1,036,390 | |
Series B 5.00% 7/1/26 | | | 3,000,000 | | | | 3,106,620 | |
Memphis-Shelby County, Tennessee Airport Authority Revenue | | | | | | | | |
Series D 5.00% 7/1/24 | | | 4,110,000 | | | | 4,252,905 | |
Metropolitan Washington D.C. Airports Authority Dulles Toll Road Revenue | | | | | | | | |
(Dulles Metrorail and Capital Improvement Project) | | | | | | | | |
Series B 4.00% 10/1/37 | | | 1,500,000 | | | | 1,690,665 | |
New Jersey State Turnpike Authority Turnpike Revenue | | | | | | | | |
Series A 5.00% 1/1/33 | | | 1,770,000 | | | | 2,120,867 | |
New Orleans, Louisiana Aviation Board | | | | | | | | |
(North Terminal Project) | | | | | | | | |
Series B 5.00% 1/1/32 (AGM) (AMT) | | | 2,900,000 | | | | 3,321,283 | |
Series B 5.00% 1/1/33 (AGM) (AMT) | | | 2,900,000 | | | | 3,309,509 | |
New York State Thruway Authority | | | | | | | | |
Series J 5.00% 1/1/27 | | | 5,705,000 | | | | 6,500,163 | |
New York Transportation Development Special Facilities Revenue | | | | | | | | |
(Delta Airlines, Inc.-LaGuardia Airport Terminals C&D Redevelopment Project) | | | | | | | | |
5.00% 1/1/34 (AMT) | | | 3,000,000 | | | | 3,230,280 | |
Pennsylvania State Turnpike Commission Revenue | | | | | | | | |
Subordinate Series A-1 5.00% 12/1/29 | | | 3,590,000 | | | | 4,125,951 | |
Phoenix, Arizona Civic Improvement Corporation Airport Revenue | | | | | | | | |
(Junior Lien) | | | | | | | | |
Series A 5.00% 7/1/33 | | | 3,355,000 | | | | 3,889,988 | |
Port Authority of New York & New Jersey | | | | | | | | |
(194th Series) | | | | | | | | |
5.00% 10/15/32 | | | 2,500,000 | | | | 2,966,325 | |
(JFK International Air Terminal) | | | | | | | | |
Series 8 6.50% 12/1/28 | | | 8,300,000 | | | | 8,411,469 | |
Salt Lake City, Utah Airport Revenue | | | | | | | | |
Series B 5.00% 7/1/31 | | | 500,000 | | | | 616,060 | |
Series B 5.00% 7/1/32 | | | 600,000 | | | | 735,168 | |
Series B 5.00% 7/1/33 | | | 1,000,000 | | | | 1,219,830 | |
San Francisco, California City & County Airport Commission - San Francisco International Airport | | | | | | | | |
Series D 5.00% 5/1/25 | | | 1,430,000 | | | | 1,471,613 | |
56
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Transportation Revenue Bonds (continued) | | | | | | | | |
South Jersey Port, New Jersey | | | | | | | | |
(Subordinated Marine Terminal) | | | | | | | | |
Series B 5.00% 1/1/32 (AMT) | | | 215,000 | | | $ | 243,470 | |
Series B 5.00% 1/1/33 (AMT) | | | 315,000 | | | | 354,848 | |
Series B 5.00% 1/1/34 (AMT) | | | 430,000 | | | | 482,666 | |
Series B 5.00% 1/1/35 (AMT) | | | 430,000 | | | | 481,196 | |
Series B 5.00% 1/1/36 (AMT) | | | 430,000 | | | | 479,635 | |
Series B 5.00% 1/1/37 (AMT) | | | 430,000 | | | | 478,250 | |
Texas Private Activity Bond Surface Transportation Corporate Senior Lien Revenue | | | | | | | | |
(LBJ Infrastructure) | | | | | | | | |
7.50% 6/30/33 | | | 3,625,000 | | | | 3,645,083 | |
(NTE Mobility Partners Segments 3 LLC Segment 3A and 3B Facility) | | | | | | | | |
7.00% 12/31/38 (AMT) | | | 3,750,000 | | | | 4,310,550 | |
| | | | | | | | |
| | | | | | | 85,231,466 | |
| | | | | | | | |
| | |
Water & Sewer Revenue Bonds — 1.55% | | | | | | | | |
Dominion, Colorado Water & Sanitation District | | | | | | | | |
5.25% 12/1/27 | | | 500,000 | | | | 523,180 | |
Great Lakes, Michigan Water Authority Water Supply System Revenue | | | | | | | | |
(Senior Lien Bond) | | | | | | | | |
Series C 5.00% 7/1/31 | | | 3,000,000 | | | | 3,654,720 | |
San Antonio, Texas Water System Revenue | | | | | | | | |
Series A 5.00% 5/15/32 | | | 1,500,000 | | | | 1,884,345 | |
Series A 5.00% 5/15/33 | | | 2,250,000 | | | | 2,813,558 | |
| | | | | | | | |
| | | | | | | 8,875,803 | |
| | | | | | | | |
Total Municipal Bonds (cost $514,578,126) | | | | | | | 553,541,750 | |
| | | | | | | | |
| | | | | | | | |
Short-Term Investments — 2.32% | | | | | | | | |
Variable Rate Demand Notes — 2.32%¤ | | | | | | | | |
Minneapolis & St. Paul, Minnesota Housing & Redevelopment Authority Health Care Revenue | | | | | | | | |
(Allina Health System) | | | | | | | | |
Series B-2 0.02% 11/15/35 (LOC - JPMorgan Chase Bank N.A.) | | | 500,000 | | | | 500,000 | |
57
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Short-Term Investments (continued) | | | | | | | | |
Mississippi Business Finance Corporation Gulf Opportunity Zone Industrial Development Revenue | | | | | | | | |
(Chevron U.S.A. Inc. Project) | | | | | | | | |
Series A 0.03% 12/1/30 | | | 1,150,000 | | | $ | 1,150,000 | |
Series A 0.03% 11/1/35 | | | 2,390,000 | | | | 2,390,000 | |
Series B 0.03% 12/1/30 | | | 700,000 | | | | 700,000 | |
Series B 0.03% 12/1/30 | | | 1,885,000 | | | | 1,885,000 | |
Series G 0.03% 11/1/35 | | | 1,795,000 | | | | 1,795,000 | |
Series G 0.03% 11/1/35 | | | 2,300,000 | | | | 2,300,000 | |
Series H 0.03% 11/1/35 | | | 1,430,000 | | | | 1,430,000 | |
Series L 0.03% 11/1/35 | | | 1,100,000 | | | | 1,100,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $13,250,000) | | | | | | | 13,250,000 | |
| | | | | | | | |
Total Value of Securities — 99.14%
(cost $527,828,126) | | | | | | $ | 566,791,750 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| ● | | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $28,930,974, which represents 5.06% of the Fund’s net assets. See Note 9 in “Notes to financial statements.” |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 9 in “Notes to financial statements.” |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
58
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
LOC – Letter of Credit
N.A. – National Association
PSF – Guaranteed by Permanent School Fund
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
59
| | |
| Schedules of investments | | |
| Delaware National High-Yield Municipal Bond Fund | | August 31, 2020 |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds — 97.46% | | | | | | | | |
Corporate Revenue Bonds — 19.39% | | | | | | | | |
Allegheny County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(Environmental Improvement - US Steel Corp. Project) | | | | | | | | |
5.75% 8/1/42 (AMT) | | | 2,000,000 | | | $ | 1,803,300 | |
Anuvia, Florida | | | | | | | | |
144A 5.00% 1/1/29 #, = | | | 127,762 | | | | 95,822 | |
Arkansas Development Finance Authority Revenue | | | | | | | | |
(Big River Steel Project) | | | | | | | | |
Series A 144A 4.50% 9/1/49 (AMT)# | | | 5,000,000 | | | | 5,057,350 | |
Buckeye, Ohio Tobacco Settlement Financing Authority | | | | | | | | |
(Asset-Backed Senior) | | | | | | | | |
Series B-2 5.00% 6/1/55 | | | 34,375,000 | | | | 37,812,500 | |
California County Tobacco Securitization Agency Settlement Revenue | | | | | | | | |
(Capital Appreciation Bond - Fresno County Tobacco Funding Corporation) | | | | | | | | |
0.83% 6/1/55 ^ | | | 100,000,000 | | | | 7,122,000 | |
California Pollution Control Financing Authority Revenue | | | | | | | | |
(Calplant I Project) | | | | | | | | |
144A 8.00% 7/1/39 (AMT)#, ‡ | | | 5,250,000 | | | | 3,045,000 | |
California State Enterprise Development Authority Revenue | | | | | | | | |
(Sunpower Corp. - Recovery Zone Facility) | | | | | | | | |
8.50% 4/1/31 | | | 1,000,000 | | | | 1,011,070 | |
Children’s Trust Fund | | | | | | | | |
(Asset-Backed) | | | | | | | | |
Series B 0.485% 5/15/57 ^ | | | 3,420,000 | | | | 137,552 | |
Erie, New York Tobacco Asset Securitization | | | | | | | | |
(Asset-Backed) | | | | | | | | |
Series A 1.536% 6/1/60 ^ | | | 192,305,000 | | | | 8,740,262 | |
Florida Development Finance Corporation Surface Transportation Facility Revenue | | | | | | | | |
(Virgin Trains USA Passenger Rail Project) | | | | | | | | |
Series A 144A 6.25% 1/1/49 (AMT)#, ● | | | 4,000,000 | | | | 3,526,680 | |
Series A 144A 6.50% 1/1/49 (AMT)#, ● | | | 10,000,000 | | | | 8,667,200 | |
60
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Corporate Revenue Bonds (continued) | | | | | | | | |
Golden State, California Tobacco Securitization Corporate Settlement Revenue | | | | | | | | |
(Asset-Backed) | | | | | | | | |
Series A-2 5.00% 6/1/47 | | | 4,000,000 | | | $ | 4,112,880 | |
(Capital Appreciation - Asset-Backed-1st Subordinate) | | | | | | | | |
Series B 1.548% 6/1/47 ^ | | | 30,145,000 | | | | 6,364,514 | |
Hoover, Alabama Industrial Development Board | | | | | | | | |
(United States Steel Corporation Project) | | | | | | | | |
5.75% 10/1/49 (AMT) | | | 12,800,000 | | | | 11,156,096 | |
Houston, Texas Airport System Revenue | | | | | | | | |
Series B-1 5.00% 7/15/35 (AMT) | | | 3,000,000 | | | | 3,068,070 | |
(Special Facilities Continental Airlines, Inc. Terminal Improvements Projects) | | | | | | | | |
Series 2011 6.625% 7/15/38 (AMT) | | | 2,000,000 | | | | 2,035,800 | |
(United Airlines Inc.) | | | | | | | | |
5.00% 7/1/29 (AMT) | | | 1,150,000 | | | | 1,191,849 | |
Indiana Finance Authority Exempt Facility Revenue | | | | | | | | |
(Polyflow Indiana Project - Green Bond) | | | | | | | | |
144A 7.00% 3/1/39 (AMT)# | | | 13,035,000 | | | | 12,301,781 | |
Inland, California Empire Tobacco Securitization | | | | | | | | |
(Capital Appreciation-Asset-Backed) | | | | | | | | |
144A 0.967% 6/1/57 #, ^ | | | 351,610,000 | | | | 19,275,260 | |
144A 1.453% 6/1/57 #, ^ | | | 163,290,000 | | | | 6,639,372 | |
Main Street Natural Gas Project Revenue, Georgia | | | | | | | | |
Series A 5.50% 9/15/23 | | | 40,000 | | | | 45,595 | |
Michigan Tobacco Settlement Financing Authority Revenue Asset-Backed | | | | | | | | |
Series A 6.00% 6/1/48 | | | 1,255,000 | | | | 1,261,212 | |
Nevada State Department of Business & Industry | | | | | | | | |
(Green Fulcrum Sierra Biofuels Project) | | | | | | | | |
144A 6.25% 12/15/37 (AMT)# | | | 2,500,000 | | | | 2,425,275 | |
New Jersey Economic Development Authority Special Facility Revenue | | | | | | | | |
(Continental Airlines Project) | | | | | | | | |
5.25% 9/15/29 (AMT) | | | 4,000,000 | | | | 4,093,840 | |
Series B 5.625% 11/15/30 (AMT) | | | 1,270,000 | | | | 1,318,794 | |
New Jersey Tobacco Settlement Financing Subordinate | | | | | | | | |
Series B 5.00% 6/1/46 | | | 4,440,000 | | | | 5,033,184 | |
New York Transportation Development | | | | | | | | |
(American Airlines Inc. John F. Kennedy International Airport Project) | | | | | | | | |
5.375% 8/1/36 (AMT) | | | 1,000,000 | | | | 1,037,360 | |
61
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Corporate Revenue Bonds (continued) | | | | | | | | |
Pennsylvania Economic Development Financing Authority | | | | | | | | |
(CarbonLite P, LLC Project) | | | | | | | | |
144A 5.75% 6/1/36 (AMT)# | | | 7,625,000 | | | $ | 7,507,956 | |
(National Gypsum) | | | | | | | | |
5.50% 11/1/44 (AMT) | | | 4,500,000 | | | | 4,624,110 | |
Port of Seattle, Washington Industrial Development Corporation Special Facilities Revenue | | | | | | | | |
(Delta Airlines) | | | | | | | | |
5.00% 4/1/30 (AMT) | | | 2,000,000 | | | | 2,056,200 | |
Public Authority for Colorado Energy Natural Gas Revenue | | | | | | | | |
Series 28 6.50% 11/15/38 | | | 2,000,000 | | | | 3,188,860 | |
Salt Verde, Arizona Financial Senior Gas Revenue | | | | | | | | |
5.00% 12/1/37 | | | 9,250,000 | | | | 12,664,453 | |
5.25% 12/1/27 | | | 2,235,000 | | | | 2,819,497 | |
5.25% 12/1/28 | | | 1,050,000 | | | | 1,350,090 | |
5.50% 12/1/29 | | | 765,000 | | | | 1,016,662 | |
Shoals, Indiana | | | | | | | | |
(National Gypsum Co. Project) | | | | | | | | |
7.25% 11/1/43 (AMT) | | | 1,625,000 | | | | 1,716,991 | |
St. James Parish, Louisiana | | | | | | | | |
(NuStar Logistics, LP Project) | | | | | | | | |
144A 6.10% 6/1/38 #, ● | | | 1,000,000 | | | | 1,184,030 | |
144A 6.35% 7/1/40 # | | | 3,600,000 | | | | 4,286,700 | |
Series B 144A 6.10% 12/1/40 #, ● | | | 1,630,000 | | | | 1,929,969 | |
Tennessee State Energy Acquisition Gas Revenue | | | | | | | | |
Series A 4.00% 5/1/48 ● | | | 720,000 | | | | 778,097 | |
Series C 5.00% 2/1/27 | | | 2,940,000 | | | | 3,615,347 | |
TSASC, New York | | | | | | | | |
Series A 5.00% 6/1/41 | | | 705,000 | | | | 795,564 | |
Tulsa, Oklahoma Municipal Airports Improvement Trust Revenue | | | | | | | | |
Series A 5.50% 6/1/35 (AMT) | | | 2,000,000 | | | | 2,022,140 | |
Valparaiso, Indiana | | | | | | | | |
(Pratt Paper LLC Project) | | | | | | | | |
7.00% 1/1/44 (AMT) | | | 2,865,000 | | | | 3,179,377 | |
Virginia Tobacco Settlement Financing Corporation | | | | | | | | |
Series B-1 5.00% 6/1/47 | | | 2,000,000 | | | | 2,009,900 | |
Series C 2.419% 6/1/47 ^ | | | 66,475,000 | | | | 13,221,213 | |
Series D 2.567% 6/1/47 ^ | | | 151,255,000 | | | | 28,653,747 | |
62
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Corporate Revenue Bonds (continued) | | | | | | | | |
Washington Economic Development Finance Authority Revenue | | | | | | | | |
(Columbia Pulp I, LLC Project) | | | | | | | | |
Series 2017A 144A 7.50% 1/1/32 (AMT)# | | | 4,800,000 | | | $ | 4,080,000 | |
| | | | | | | | |
| | | | | | | 261,080,521 | |
| | | | | | | | |
Education Revenue Bonds — 18.50% | | | | | | | | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(ACCEL Schools Project) | | | | | | | | |
Series A 144A 5.25% 8/1/48 # | | | 3,200,000 | | | | 3,332,224 | |
(American Charter Schools Foundation Project) | | | | | | | | |
144A 6.00% 7/1/37 # | | | 1,205,000 | | | | 1,344,672 | |
144A 6.00% 7/1/47 # | | | 4,735,000 | | | | 5,200,735 | |
(Basis Schools Projects) | | | | | | | | |
Series A 144A 5.125% 7/1/37 # | | | 750,000 | | | | 807,592 | |
(Kaizen Education Foundation Project) | | | | | | | | |
144A 5.80% 7/1/52# | | | 4,000,000 | | | | 4,278,600 | |
(Pinecrest Academy Nevada-Horizon, Inspirada) | | | | | | | | |
Series A 144A 5.75% 7/15/48# | | | 2,250,000 | | | | 2,463,907 | |
Arlington, Texas Higher Education Finance | | | | | | | | |
(Leadership Preparatory School) | | | | | | | | |
Series A 5.00% 6/15/36 | | | 700,000 | | | | 704,347 | |
Series A 5.00% 6/15/46 | | | 1,425,000 | | | | 1,430,458 | |
Build NYC Resource, New York | | | | | | | | |
5.00% 11/1/39 | | | 1,000,000 | | | | 1,041,460 | |
(Inwood Academy for Leadership Charter School Project) | | | | | | | | |
Series A 144A 5.125% 5/1/38 # | | | 575,000 | | | | 614,175 | |
Series A 144A 5.50% 5/1/48 # | | | 1,500,000 | | | | 1,614,345 | |
(New Dawn Charter Schools Project) | | | | | | | | |
144A 5.625% 2/1/39 # | | | 1,290,000 | | | | 1,355,828 | |
144A 5.75% 2/1/49 # | | | 2,700,000 | | | | 2,824,821 | |
Burbank, Illinois | | | | | | | | |
(Intercultural Montessori Language) | | | | | | | | |
144A 6.25% 9/1/45 # | | | 4,000,000 | | | | 4,275,120 | |
California Educational Facilities Authority Revenue | | | | | | | | |
(Stanford University) | | | | | | | | |
Series V-1 5.00% 5/1/49 | | | 17,050,000 | | | | 27,789,283 | |
California Municipal Finance Authority Revenue | | | | | | | | |
(California Baptist University) | | | | | | | | |
Series A 144A 5.50% 11/1/45 # | | | 4,000,000 | | | | 4,221,800 | |
(Julian Charter School Project) | | | | | | | | |
Series A 144A 5.625% 3/1/45 # | | | 5,250,000 | | | | 5,297,460 | |
63
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
California Municipal Finance Authority Revenue | | | | | | | | |
(Partnership Uplift Community Project) | | | | | | | | |
Series A 5.25% 8/1/42 | | | 1,700,000 | | | $ | 1,729,920 | |
(Santa Rosa Academy Project) | | | | | | | | |
Series A 6.00% 7/1/42 | | | 1,250,000 | | | | 1,308,275 | |
(Southwestern Law School) | | | | | | | | |
6.50% 11/1/41 | | | 1,500,000 | | | | 1,579,500 | |
California School Finance Authority | | | | | | | | |
(Aspire Public Schools) | | | | | | | | |
Series A 144A 5.00% 8/1/35 # | | | 585,000 | | | | 661,992 | |
Series A 144A 5.00% 8/1/40 # | | | 605,000 | | | | 677,787 | |
(Encore Education Obligated Group) | | | | | | | | |
Series A 144A 5.00% 6/1/52 # | | | 1,000,000 | | | | 903,130 | |
(Escuela Popular Project) | | | | | | | | |
144A 6.50% 7/1/50 # | | | 2,500,000 | | | | 2,725,075 | |
(New Designs Charter School) | | | | | | | | |
Series A 5.50% 6/1/42 | | | 1,750,000 | | | | 1,790,792 | |
(View Park Elementary & Middle Schools) | | | | | | | | |
Series A 5.875% 10/1/44 | | | 1,000,000 | | | | 1,073,800 | |
Series A 6.00% 10/1/49 | | | 720,000 | | | | 776,506 | |
California State University | | | | | | | | |
(Systemwide) | | | | | | | | |
Series A 5.00% 11/1/26 | | | 2,000,000 | | | | 2,562,580 | |
California Statewide Communities Development Authority Charter School Revenue | | | | | | | | |
(Green Dot Public Schools) | | | | | | | | |
Series A 7.25% 8/1/41 | | | 1,915,000 | | | | 1,994,128 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(Lancer Educational Student Housing Project) | | | | | | | | |
Series A 144A 5.00% 6/1/46 # | | | 1,500,000 | | | | 1,520,070 | |
Capital Trust Agency, Florida | | | | | | | | |
(Pineapple Cove Classical Academy Inc. Project) | | | | | | | | |
Series A 144A 5.375% 7/1/54 # | | | 6,000,000 | | | | 6,267,720 | |
(River City Education Services Project) | | | | | | | | |
Series A 5.375% 2/1/35 | | | 870,000 | | | | 899,780 | |
Series A 5.625% 2/1/45 | | | 1,500,000 | | | | 1,544,430 | |
(The Pepin Academies Inc. Project) | | | | | | | | |
Series A 5.75% 7/1/55 | | | 2,625,000 | | | | 2,686,110 | |
(University Bridge, LLC Student Housing Project) | | | | | | | | |
Series A 144A 5.25% 12/1/58 # | | | 8,000,000 | | | | 7,696,080 | |
64
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
Colorado Educational & Cultural Facilities Authority Revenue | | | | | | | | |
(Charter School - Community Leadership Academy) | | | | | | | | |
7.45% 8/1/48 | | | 2,000,000 | | | $ | 2,202,960 | |
(Charter School - Loveland Classical School) | | | | | | | | |
144A 5.00% 7/1/46 # | | | 1,500,000 | | | | 1,508,175 | |
(Skyview Charter School) | | | | | | | | |
144A 5.375% 7/1/44 # | | | 500,000 | | | | 510,615 | |
(Windsor Charter Academy Project) | | | | | | | | |
Series 2016 144A 5.00% 9/1/36 # | | | 1,000,000 | | | | 1,003,660 | |
Columbia Heights, Minnesota Charter School Lease Revenue | | | | | | | | |
(Prodeo Academy Project) | | | | | | | | |
Series A 5.00% 7/1/49 | | | 1,000,000 | | | | 1,019,960 | |
Series A 5.00% 7/1/54 | | | 1,000,000 | | | | 1,016,350 | |
East Hempfield Township, Pennsylvania Industrial Development Authority | | | | | | | | |
(Student Services Income - Student Housing Project) | | | | | | | | |
5.00% 7/1/30 | | | 1,000,000 | | | | 1,018,680 | |
Hawaii State Department of Budget & Finance | | | | | | | | |
(Hawaii Pacific University) | | | | | | | | |
Series A 6.875% 7/1/43 | | | 2,000,000 | | | | 2,058,320 | |
Henderson, Nevada Public Improvement Trust | | | | | | | | |
(Touro College & University System) | | | | | | | | |
Series A 5.50% 1/1/39 | | | 560,000 | | | | 594,748 | |
Series A 5.50% 1/1/44 | | | 2,000,000 | | | | 2,110,160 | |
Idaho Housing & Finance Association | | | | | | | | |
(Compass Public Charter School) | | | | | | | | |
Series A 144A 5.00% 7/1/54 # | | | 860,000 | | | | 894,391 | |
(Idaho Arts Charter School) | | | | | | | | |
144A 5.00% 12/1/36 # | | | 715,000 | | | | 780,837 | |
(North Star Charter School) | | | | | | | | |
Capital Appreciation Subordinate Series B | | | | | | | | |
144A 4.88% 7/1/49 #, ^ | | | 2,888,155 | | | | 484,373 | |
Series A 6.75% 7/1/48 | | | 529,150 | | | | 572,419 | |
(Xavier Charter School Project) | | | | | | | | |
Series A 5.00% 6/1/50 | | | 1,000,000 | | | | 1,083,330 | |
Illinois Finance Authority Charter School Revenue | | | | | | | | |
(Chicago International Charter School Project) | | | | | | | | |
5.00% 12/1/47 | | | 2,805,000 | | | | 3,026,988 | |
(Uno Charter School) | | | | | | | | |
Series A 7.125% 10/1/41 | | | 1,000,000 | | | | 1,036,450 | |
65
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
Illinois Finance Authority Revenue | | | | | | | | |
(Lake Forest College) | | | | | | | | |
Series A 6.00% 10/1/48 | | | 1,000,000 | | | $ | 1,035,830 | |
(Rogers Park Montessori) | | | | | | | | |
6.00% 2/1/34 | | | 675,000 | | | | 715,662 | |
6.125% 2/1/45 | | | 1,800,000 | | | | 1,893,276 | |
Illinois Finance Authority Student Housing & Academic Facility Revenue | | | | | | | | |
(University of Illinois at Chicago Project) | | | | | | | | |
Series A 5.00% 2/15/47 | | | 3,500,000 | | | | 3,351,460 | |
Illinois Finance Authority Student Housing Revenue | | | | | | | | |
(Dekalb II - Northern Illinois University Project) | | | | | | | | |
6.875% 10/1/43 | | | 1,000,000 | | | | 1,024,080 | |
Indiana State Finance Authority Revenue | | | | | | | | |
Educational Facilities | | | | | | | | |
(Drexel Foundation - Thea Bowman Academy Charter School) | | | | | | | | |
Series A 7.00% 10/1/39 | | | 1,000,000 | | | | 1,001,620 | |
Kanawha, West Virginia | | | | | | | | |
(West Virginia University Foundation Project) | | | | | | | | |
6.75% 7/1/45 | | | 2,500,000 | | | | 2,576,025 | |
Kent County, Delaware Student Housing and Dining Facilities Revenue | | | | | | | | |
(Delaware State University Project) | | | | | | | | |
Series A 5.00% 7/1/58 | | | 1,250,000 | | | | 1,139,813 | |
Louisiana Public Facilities Authority Revenue | | | | | | | | |
(Lake Charles Charter Academy Foundation Project) | | | | | | | | |
8.00% 12/15/41 | | | 1,500,000 | | | | 1,570,110 | |
Macomb County, Michigan State Public School Academy Revenue | | | | | | | | |
(Academy Of Warren) | | | | | | | | |
Series A 144A 5.50% 5/1/50 # | | | 1,810,000 | | | | 1,823,901 | |
Macon-Bibb County, Georgia Urban Development Authority Revenue | | | | | | | | |
(Academy for Classical Education) | | | | | | | | |
Series A 144A 5.875% 6/15/47 # | | | 1,680,000 | | | | 1,702,781 | |
Series A 144A 6.00% 6/15/52 # | | | 1,530,000 | | | | 1,557,096 | |
Miami-Dade County, Florida Industrial Development Authority | | | | | | | | |
(Youth Co-Op Charter School) | | | | | | | | |
Series A 144A 5.75% 9/15/35 # | | | 1,000,000 | | | | 1,052,990 | |
Series A 144A 6.00% 9/15/45 # | | | 1,000,000 | | | | 1,047,640 | |
66
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
Michigan Finance Authority Limited Obligation Revenue | | | | | | | | |
(Public School Academy Old Redford) | | | | | | | | |
Series A 6.50% 12/1/40 | | | 900,000 | | | $ | 901,971 | |
(Landmark Academy Project) | | | | | | | | |
5.00% 6/1/45 | | | 2,000,000 | | | | 2,013,660 | |
Nevada State Department of Business & Industry | | | | | | | | |
(Somerset Academy) | | | | | | | | |
Series A 144A 5.00% 12/15/35 # | | | 1,595,000 | | | | 1,639,596 | |
Series A 144A 5.125% 12/15/45 # | | | 2,515,000 | | | | 2,558,459 | |
New Jersey State Higher Education Student | | | | | | | | |
Assistance Authority Student Loan Revenue | | | | | | | | |
Series 1B 5.75% 12/1/39 (AMT) | | | 1,250,000 | | | | 1,339,713 | |
New York State Dormitory Authority | | | | | | | | |
(Touro College & University System) | | | | | | | | |
Series A 5.50% 1/1/44 | | | 2,875,000 | | | | 3,043,878 | |
Pennsylvania State Higher Educational Facilities Authority Revenue | | | | | | | | |
(Foundation Indiana University) | | | | | | | | |
Series A 1.61% 7/1/39 (AGC)● | | | 2,400,000 | | | | 2,177,712 | |
Philadelphia, Pennsylvania Authority for Industrial Development Revenue | | | | | | | | |
(1st Philadelphia Preparatory) | | | | | | | | |
Series A 7.25% 6/15/43 | | | 1,230,000 | | | | 1,375,927 | |
(Global Leadership Academy Project) | | | | | | | | |
6.375% 11/15/40 | | | 1,000,000 | | | | 1,004,420 | |
(Green Woods Charter School Project) | | | | | | | | |
Series A 5.75% 6/15/42 | | | 1,600,000 | | | | 1,637,984 | |
(Tacony Academy Charter School Project) | | | | | | | | |
7.00% 6/15/43 | | | 1,540,000 | | | | 1,660,120 | |
Phoenix, Arizona Industrial Development Authority Education Revenue | | | | | | | | |
(Basic Schools Project) | | | | | | | | |
Series 2015A 144A 5.00% 7/1/46 # | | | 4,000,000 | | | | 4,184,640 | |
Series 2016A 144A 5.00% 7/1/45 # | | | 2,000,000 | | | | 2,093,220 | |
(Choice Academies Project) | | | | | | | | |
5.375% 9/1/32 | | | 1,000,000 | | | | 1,021,710 | |
5.625% 9/1/42 | | | 600,000 | | | | 612,636 | |
(Eagle College Preparatory Project) | | | | | | | | |
Series A 5.00% 7/1/43 | | | 450,000 | | | | 454,122 | |
67
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
Pima County, Arizona Industrial Development Authority Education Revenue | | | | | | | | |
(American Leadership Academy Project) | | | | | | | | |
144A 5.00% 6/15/47 # | | | 1,630,000 | | | $ | 1,634,841 | |
144A 5.00% 6/15/52 # | | | 1,400,000 | | | | 1,402,968 | |
(Career Success Schools Project) | | | | | | | | |
144A 5.50% 5/1/40 # | | | 500,000 | | | | 525,250 | |
144A 5.75% 5/1/50 # | | | 1,630,000 | | | | 1,711,614 | |
(Edkey Charter Schools Project) | | | | | | | | |
6.00% 7/1/43 | | | 2,000,000 | | | | 2,028,240 | |
Pottsboro, Texas Higher Education Finance Authority Revenue | | | | | | | | |
Series A 5.00% 8/15/36 | | | 755,000 | | | | 789,745 | |
Series A 5.00% 8/15/46 | | | 1,000,000 | | | | 1,028,460 | |
Private Colleges & Universities Authority, Georgia Revenue | | | | | | | | |
(Mercer University) | | | | | | | | |
Series A 5.00% 10/1/32 | | | 1,005,000 | | | | 1,029,241 | |
Public Finance Authority Revenue, Wisconsin | | | | | | | | |
(Goodwill Industries of Southern Nevada Project) | | | | | | | | |
Series A 5.50% 12/1/38 | | | 2,572,956 | | | | 2,267,521 | |
Series A 5.75% 12/1/48 | | | 2,576,272 | | | | 2,218,273 | |
(Minnesota College of Osteopathic Medicine) | | | | | | | | |
Series A-1 144A 5.50% 12/1/48 #, ‡ | | | 125,529 | | | | 62,764 | |
Subordinate Series B 144A 7.75% 12/1/48 #, ● | | | 2,500,000 | | | | 250,000 | |
(Wilson Preparatory Academy) | | | | | | | | |
Series A 144A 4.125% 6/15/29 # | | | 505,000 | | | | 512,378 | |
Series A 144A 5.00% 6/15/39 # | | | 500,000 | | | | 510,790 | |
Series A 144A 5.00% 6/15/49 # | | | 1,100,000 | | | | 1,110,923 | |
South Carolina Jobs-Economic Development Authority Educational Facilities Revenue | | | | | | | | |
(High Point Academy Project) | | | | | | | | |
Series A 144A 5.75% 6/15/49 # | | | 5,000,000 | | | | 5,421,050 | |
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 | | | | 2,536,934 | |
University of Texas System Board of Regents | | | | | | | | |
Series B 5.00% 8/15/49 | | | 21,400,000 | | | | 34,621,562 | |
Utah State Charter School Finance Authority Revenue | | | | | | | | |
(Leadership Learning Academy Project) | | | | | | | | |
Series A 144A 5.00% 6/15/39 # | | | 1,000,000 | | | | 1,049,960 | |
68
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Education Revenue Bonds (continued) | | | | | | | | |
Utah State Charter School Finance Authority Revenue | | | | | | | | |
(Leadership Learning Academy Project) | | | | | | | | |
Series A 144A 5.00% 6/15/50 # | | | 2,200,000 | | | $ | 2,272,512 | |
(North Davis Preparatory) | | | | | | | | |
6.375% 7/15/40 | | | 1,290,000 | | | | 1,293,509 | |
Wisconsin Public Finance Authority Revenue | | | | | | | | |
(Pine Lake Preparatory) | | | | | | | | |
144A 5.50% 3/1/45 # | | | 3,460,000 | | | | 3,603,728 | |
(Roseman University Health Sciences Project) | | | | | | | | |
5.75% 4/1/42 | | | 2,000,000 | | | | 2,056,420 | |
Wyoming Community Development Authority Student Housing Revenue | | | | | | | | |
(CHF-Wyoming LLC) | | | | | | | | |
6.50% 7/1/43 | | | 1,000,000 | | | | 1,016,230 | |
Yonkers, New York Economic Development Corporation Education Revenue | | | | | | | | |
(Charter School Educational Excellence) | | | | | | | | |
Series A 6.25% 10/15/40 | | | 595,000 | | | | 597,243 | |
(Lamartine/Warburton LLC - Charter School of Educational Excellence Project) | | | | | | | | |
Series A 5.00% 10/15/54 | | | 465,000 | | | | 483,623 | |
| | | | | | | | |
| | | | | | | 249,164,749 | |
| | | | | | | | |
Electric Revenue Bonds — 2.96% | | | | | | | | |
Build NYC Resource, New York | | | | | | | | |
(Brooklyn Navy Yard Cogeneration Partners, L.P. Project) | | | | | | | | |
144A 5.25% 12/31/33 (AMT)# | | | 4,520,000 | | | | 4,798,206 | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series A 5.00% 7/1/42 ‡ | | | 7,740,000 | | | | 5,340,600 | |
Series A 5.05% 7/1/42 ‡ | | | 4,590,000 | | | | 3,167,100 | |
Series A 6.75% 7/1/36 ‡ | | | 1,500,000 | | | | 1,057,500 | |
Series AAA 5.25% 7/1/25 ‡ | | | 925,000 | | | | 639,406 | |
Series AAA 5.25% 7/1/26 ‡ | | | 1,030,000 | | | | 711,988 | |
Series AAA 5.25% 7/1/27 ‡ | | | 5,330,000 | | | | 3,684,362 | |
Series AAA 5.25% 7/1/28 ‡ | | | 1,205,000 | | | | 832,956 | |
Series CCC 5.25% 7/1/27 ‡ | | | 3,025,000 | | | | 2,091,031 | |
Series WW 5.00% 7/1/28 ‡ | | | 990,000 | | | | 683,100 | |
Series WW 5.25% 7/1/25 ‡ | | | 1,530,000 | | | | 1,057,613 | |
Series XX 4.75% 7/1/26 ‡ | | | 920,000 | | | | 630,200 | |
Series XX 5.25% 7/1/40 ‡ | | | 9,795,000 | | | | 6,770,794 | |
Series XX 5.75% 7/1/36 ‡ | | | 3,340,000 | | | | 2,329,650 | |
Series ZZ 4.75% 7/1/27 ‡ | | | 760,000 | | | | 520,600 | |
69
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Electric Revenue Bonds (continued) | | | | | | | | |
Puerto Rico Electric Power Authority Revenue | | | | | | | | |
Series ZZ 5.25% 7/1/24 ‡ | | | 1,275,000 | | | $ | 881,344 | |
Series ZZ 5.25% 7/1/26 ‡ | | | 2,005,000 | | | | 1,385,956 | |
Salt River Project Agricultural Improvement & Power District, Arizona | | | | | | | | |
(Salt River Project) | | | | | | | | |
Series A 5.00% 1/1/31 | | | 2,520,000 | | | | 3,263,350 | |
| | | | | | | | |
| | | | | | | 39,845,756 | |
| | | | | | | | |
Healthcare Revenue Bonds — 25.41% | | | | | | | | |
Alachua County, Florida Health Facilities Authority | | | | | | | | |
(Oak Hammock University) | | | | | | | | |
Series A 8.00% 10/1/42 | | | 1,000,000 | | | | 1,098,310 | |
Series A 8.00% 10/1/46 | | | 1,500,000 | | | | 1,644,600 | |
Allen County, Indiana Economic Development Revenue | | | | | | | | |
(StoryPoint Fort Wayne Project) | | | | | | | | |
Series A-1 144A 6.875% 1/15/52 # | | | 1,650,000 | | | | 1,563,623 | |
Apple Valley, Minnesota | | | | | | | | |
(Minnesota Senior Living LLC, Project) | | | | | | | | |
Series B 5.00% 1/1/47 | | | 2,500,000 | | | | 1,659,225 | |
Series B 5.25% 1/1/37 | | | 440,000 | | | | 337,000 | |
Series D 7.25% 1/1/52 | | | 7,290,000 | | | | 5,519,624 | |
Arizona Industrial Development Authority Revenue | | | | | | | | |
(Great Lakes Senior Living Communities LLC Project 1st Tier) | | | | | | | | |
Series A 5.00% 1/1/54 | | | 2,595,000 | | | | 2,272,909 | |
(Great Lakes Senior Living Communities LLC Project 2nd Tier) | | | | | | | | |
Series B 5.00% 1/1/49 | | | 975,000 | | | | 820,804 | |
Series B 5.125% 1/1/54 | | | 1,130,000 | | | | 954,025 | |
(Great Lakes Senior Living Communities LLC Project 3rd Tier) | | | | | | | | |
Series C 144A 5.00% 1/1/49 # | | | 1,000,000 | | | | 796,000 | |
Series C 144A 5.50% 1/1/54 # | | | 4,000,000 | | | | 3,386,040 | |
(Great Lakes Senior Living Communities LLC Project 4th Tier) | | | | | | | | |
Series D 144A 7.25% 1/1/54 # | | | 2,500,000 | | | | 2,164,600 | |
(Legacy Cares Inc. Project) | | | | | | | | |
Series A 144A 7.75% 7/1/50# | | | 11,530,000 | | | | 11,409,050 | |
Berks County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(Tower Health Project) | | | | | | | | |
5.00% 11/1/47 | | | 2,000,000 | | | | 2,145,120 | |
70
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Bexar County, Texas Health Facilities Development | | | | | | | | |
(Army Retirement Residence Foundation Project) | | | | | | | | |
Series 2010 5.875% 7/1/30 | | | 155,000 | | | $ | 155,260 | |
Birmingham, Alabama Special Care Facilities Financing Authority | | | | | | | | |
(Methodist Home for the Aging) | | | | | | | | |
5.50% 6/1/30 | | | 1,850,000 | | | | 1,930,272 | |
5.75% 6/1/35 | | | 1,500,000 | | | | 1,553,190 | |
5.75% 6/1/45 | | | 2,500,000 | | | | 2,543,750 | |
6.00% 6/1/50 | | | 2,650,000 | | | | 2,727,406 | |
Butler County, Ohio Port Authority | | | | | | | | |
(StoryPoint Fairfield Project) | | | | | | | | |
Series A-1 144A 6.50% 1/15/52 # | | | 650,000 | | | | 615,908 | |
California Health Facilities Financing Authority Revenue | | | | | | | | |
(Kaiser Permanente) | | | | | | | | |
Series A-2 5.00% 11/1/47 | | | 4,870,000 | | | | 7,605,382 | |
California Municipal Finance Authority Revenue | | | | | | | | |
(Northbay Healthcare Group) | | | | | | | | |
Series A 5.25% 11/1/47 | | | 500,000 | | | | 550,985 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(Loma Linda University Medical Center) | | | | | | | | |
Series A 144A 5.25% 12/1/56 # | | | 4,500,000 | | | | 4,845,735 | |
Series A 144A 5.50% 12/1/58 # | | | 4,600,000 | | | | 5,065,060 | |
Camden County, New Jersey Improvement Authority Revenue | | | | | | | | |
(Cooper Health System Obligation Group) | | | | | | | | |
5.75% 2/15/42 | | | 2,050,000 | | | | 2,215,066 | |
Capital Trust Agency, Florida | | | | | | | | |
(Elim Senior Housing Inc. Project) | | | | | | | | |
144A 5.875% 8/1/52 # | | | 2,500,000 | | | | 1,874,250 | |
(Tuscan Gardens Senior Living Center) | | | | | | | | |
Series A 7.00% 4/1/49 | | | 5,000,000 | | | | 3,508,200 | |
Chesterfield County, Virginia Economic Development Authority Revenue | | | | | | | | |
(1st Mortgage - Brandermill Woods Project) | | | | | | | | |
5.125% 1/1/43 | | | 1,030,000 | | | | 1,034,851 | |
Chesterton, Indiana | | | | | | | | |
(StoryPoint Chesterton Project) | | | | | | | | |
Series A-1 144A 6.375% 1/15/51 # | | | 1,000,000 | | | | 947,540 | |
71
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Clackamas County, Oregon Hospital Facility Authority | | | | | | | | |
(Rose Villa Project) | | | | | | | | |
Series A 5.25% 11/15/50 | | | 1,000,000 | | | $ | 1,060,790 | |
Series A 5.375% 11/15/55 | | | 1,000,000 | | | | 1,065,120 | |
Cobb County, Georgia Development Authority | | | | | | | | |
(Provident Village at Creekside Project) | | | | | | | | |
Series A 144A 6.00% 7/1/51 # | | | 3,500,000 | | | | 2,537,815 | |
Colorado Health Facilities Authority Revenue | | | | | | | | |
(American Baptist) | | | | | | | | |
8.00% 8/1/43 | | | 2,500,000 | | | | 2,659,200 | |
(Mental Health Center Denver Project) | | | | | | | | |
Series A 5.75% 2/1/44 | | | 500,000 | | | | 530,430 | |
(Sunny Vista Living Center) | | | | | | | | |
Series A 144A 5.50% 12/1/30 # | | | 750,000 | | | | 758,092 | |
Series A 144A 5.75% 12/1/35 # | | | 1,150,000 | | | | 1,151,426 | |
Series A 144A 6.125% 12/1/45 # | | | 1,200,000 | | | | 1,201,188 | |
Series A 144A 6.25% 12/1/50 # | | | 560,000 | | | | 562,414 | |
Cumberland County, Pennsylvania Municipal Authority Revenue | | | | | | | | |
(Asbury Pennsylvania Obligated Group) | | | | | | | | |
5.25% 1/1/27 | | | 1,275,000 | | | | 1,285,328 | |
5.25% 1/1/32 | | | 1,265,000 | | | | 1,271,350 | |
5.25% 1/1/41 | | | 1,005,000 | | | | 1,007,100 | |
Cuyahoga County, Ohio Hospital Revenue | | | | | | | | |
(The Metrohealth System) | | | | | | | | |
5.25% 2/15/47 | | | 4,000,000 | | | | 4,599,280 | |
5.50% 2/15/52 | | | 4,655,000 | | | | 5,396,728 | |
5.50% 2/15/57 | | | 6,365,000 | | | | 7,344,510 | |
Decatur, Texas Hospital Authority | | | | | | | | |
(Wise Regional Health Systems) | | | | | | | | |
Series A 5.00% 9/1/34 | | | 1,000,000 | | | | 1,091,010 | |
Series A 5.25% 9/1/29 | | | 500,000 | | | | 559,325 | |
Series A 5.25% 9/1/44 | | | 2,000,000 | | | | 2,152,660 | |
Florida Development Finance | | | | | | | | |
(UF Health - Jacksonville Project) | | | | | | | | |
Series A 6.00% 2/1/33 | | | 490,000 | | | | 517,773 | |
Glendale, Arizona Industrial Development Authority Revenue | | | | | | | | |
(Glencroft Retirement Community Project) | | | | | | | | |
5.00% 11/15/36 | | | 830,000 | | | | 812,794 | |
5.25% 11/15/51 | | | 1,350,000 | | | | 1,290,128 | |
72
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Guilderland, New York Industrial Development Agency | | | | | | | | |
Series A 144A 5.875% 1/1/52 #, ‡ | | | 6,000,000 | | | $ | 4,500,000 | |
Hawaii State Department of Budget & Finance Special Purpose Senior Living Revenue | | | | | | | | |
(Kahala Nui) | | | | | | | | |
5.25% 11/15/37 | | | 1,000,000 | | | | 1,074,010 | |
Hospital Facilities Authority of Multnomah County, Oregon | | | | | | | | |
(Mirabella at South Waterfront) | | | | | | | | |
5.50% 10/1/49 | | | 2,400,000 | | | | 2,504,832 | |
Idaho Health Facilities Authority Revenue | | | | | | | | |
(St. Luke’s Health System Project) | | | | | | | | |
Series A 5.00% 3/1/33 | | | 485,000 | | | | 594,168 | |
(Valley Vista Care Corporation) | | | | | | | | |
Series A 5.00% 11/15/32 | | | 455,000 | | | | 444,012 | |
Illinois Finance Authority Revenue | | | | | | | | |
(The Admiral at the Lake Project) | | | | | | | | |
5.25% 5/15/42 | | | 900,000 | | | | 847,719 | |
5.25% 5/15/54 | | | 5,600,000 | | | | 5,061,952 | |
Illinois Housing Development Authority | | | | | | | | |
(Stonebridge of Gurnee Project) | | | | | | | | |
Series A 144A 5.45% 1/1/46 # | | | 2,500,000 | | | | 2,416,550 | |
Series A 144A 5.60% 1/1/56 # | | | 2,630,000 | | | | 2,589,971 | |
Indiana Finance Authority Revenue | | | | | | | | |
(Marquette Project) | | | | | | | | |
5.00% 3/1/39 | | | 1,250,000 | | | | 1,272,000 | |
Iowa Finance Authority | | | | | | | | |
(PHS Council Bluffs Project) | | | | | | | | |
5.125% 8/1/48 | | | 1,650,000 | | | | 1,659,520 | |
5.25% 8/1/55 | | | 2,500,000 | | | | 2,514,925 | |
(Sunrise Retirement Community) | | | | | | | | |
5.75% 9/1/43 | | | 4,700,000 | | | | 4,324,188 | |
Kalispell, Montana | | | | | | | | |
(Immanuel Lutheran Corporation Project) | | | | | | | | |
Series A 5.25% 5/15/47 | | | 1,300,000 | | | | 1,298,037 | |
Kentucky Economic Development Finance Authority Healthcare Revenue | | | | | | | | |
(Rosedale Green Project) | | | | | | | | |
5.50% 11/15/35 | | | 1,310,000 | | | | 1,248,915 | |
5.75% 11/15/45 | | | 2,500,000 | | | | 2,324,225 | |
5.75% 11/15/50 | | | 1,600,000 | | | | 1,467,536 | |
73
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Kentwood, Michigan Economic Development Corporation Revenue | | | | | | | | |
(Limited Obligation - Holland Home) | | | | | | | | |
5.625% 11/15/41 | | | 1,250,000 | | | $ | 1,284,275 | |
Kirkwood, Missouri Industrial Development Authority | | | | | | | | |
(Aberdeen Heights) | | | | | | | | |
Series A 5.25% 5/15/50 | | | 6,000,000 | | | | 6,053,460 | |
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue | | | | | | | | |
(The Glen Retirement System Project) | | | | | | | | |
Series A 5.00% 1/1/49 | | | 2,500,000 | | | | 2,179,525 | |
Series A 5.00% 1/1/55 | | | 2,635,000 | | | | 2,236,562 | |
Lucas County, Ohio Health Care Facilities Revenue | | | | | | | | |
(Sunset Retirement Communities) | | | | | | | | |
5.50% 8/15/30 | | | 1,000,000 | | | | 1,028,060 | |
Maine Health & Higher Educational Facilities Authority Revenue | | | | | | | | |
(Maine General Medical Center) | | | | | | | | |
6.75% 7/1/41 | | | 1,700,000 | | | | 1,743,894 | |
Maricopa County, Arizona Industrial Development Authority | | | | | | | | |
(Christian Care Surprise Project) | | | | | | | | |
Series 2016 144A 6.00% 1/1/48 # | | | 5,645,000 | | | | 5,460,634 | |
Michigan State Strategic Fund Limited Revenue | | | | | | | | |
(Evangelical Homes) | | | | | | | | |
5.50% 6/1/47 | | | 2,750,000 | | | | 2,788,115 | |
Missouri State Health & Educational Facilities Authority Revenue | | | | | | | | |
(Lutheran Senior Services) | | | | | | | | |
6.00% 2/1/41 | | | 1,000,000 | | | | 1,014,450 | |
Montgomery County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(Whitemarsh Continuing Care) | | | | | | | | |
5.25% 1/1/40 | | | 1,550,000 | | | | 1,574,459 | |
5.375% 1/1/50 | | | 6,250,000 | | | | 6,330,062 | |
Series A 5.375% 1/1/51 | | | 1,750,000 | | | | 1,779,418 | |
Moon, Pennsylvania Industrial Development Authority | | | | | | | | |
(Baptist Homes Society Obligation) | | | | | | | | |
6.125% 7/1/50 | | | 8,500,000 | | | | 8,820,280 | |
74
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
National Finance Authority Revenue, New Hampshire | | | | | | | | |
(The Vista Project) | | | | | | | | |
Series A 144A 5.25% 7/1/39 # | | | 1,515,000 | | | $ | 1,540,164 | |
Series A 144A 5.625% 7/1/46 # | | | 1,000,000 | | | | 1,027,620 | |
Series A 144A 5.75% 7/1/54 # | | | 2,000,000 | | | | 2,060,780 | |
New Hampshire Health & Education Facilities Authority | | | | | | | | |
(Rivermeade) | | | | | | | | |
Series A 6.875% 7/1/41 | | | 1,380,000 | | | | 1,401,790 | |
New Hope, Texas Cultural Education Facilities Finance | | | | | | | | |
(Cardinal Bay - Village on the Park) | | | | | | | | |
Series A1 5.00% 7/1/46 | | | 660,000 | | | | 645,896 | |
Series A1 5.00% 7/1/51 | | | 1,575,000 | | | | 1,485,288 | |
Series B 4.00% 7/1/31 | | | 635,000 | | | | 548,608 | |
Series B 4.75% 7/1/51 | | | 1,915,000 | | | | 1,450,555 | |
Series C 5.00% 7/1/31 | | | 250,000 | | | | 224,378 | |
Series C 5.25% 7/1/36 | | | 350,000 | | | | 306,796 | |
Series C 5.50% 7/1/46 | | | 1,250,000 | | | | 1,053,387 | |
Series C 5.75% 7/1/51 | | | 1,000,000 | | | | 853,810 | |
Series D 6.00% 7/1/26 | | | 105,000 | | | | 99,647 | |
Series D 7.00% 7/1/51 | | | 1,350,000 | | | | 1,163,484 | |
(Legacy Midtown Park Project) | | | | | | | | |
Series A 5.50% 7/1/54 | | | 5,000,000 | | | | 4,757,050 | |
New Jersey Economic Development Authority | | | | | | | | |
(Black Horse EHT Urban Renewal LLC Project) | | | | | | | | |
Series A 144A 5.00% 10/1/39 # | | | 3,125,000 | | | | 3,005,906 | |
(Lions Gate Project) | | | | | | | | |
5.25% 1/1/44 | | | 2,000,000 | | | | 1,939,680 | |
New Jersey Health Care Facilities Financing Authority Revenue | | | | | | | | |
(Barnabas Health Services) | | | | | | | | |
Series A 4.00% 7/1/26 | | | 980,000 | | | | 1,034,057 | |
(St. Peters University Hospital) | | | | | | | | |
6.25% 7/1/35 | | | 2,700,000 | | | | 2,788,101 | |
New York State Dormitory Authority | | | | | | | | |
(Orange Regional Medical Center) | | | | | | | | |
144A 5.00% 12/1/40 # | | | 1,100,000 | | | | 1,218,492 | |
Northampton County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(Morningstar Senior Living) | | | | | | | | |
5.00% 7/1/36 | | | 2,000,000 | | | | 2,023,920 | |
75
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Northampton County, Pennsylvania Industrial Development Authority Revenue | | | | | | | | |
(Morningstar Senior Living) | | | | | | | | |
5.00% 11/1/49 | | | 1,830,000 | | | $ | 1,871,742 | |
Orange County, New York Funding Corporation Assisted Living Residence Revenue | | | | | | | | |
6.50% 1/1/46 | | | 3,700,000 | | | | 3,708,251 | |
Palm Beach County, Florida Health Facilities Authority | | | | | | | | |
(Sinai Residences Boca Raton Project) | | | | | | | | |
Series A 7.25% 6/1/34 | | | 285,000 | | | | 304,371 | |
Series A 7.50% 6/1/49 | | | 2,920,000 | | | | 3,110,676 | |
Payne County, Oklahoma Economic Development Authority | | | | | | | | |
(Epworth Living at the Ranch) | | | | | | | | |
Series A 7.00% 11/1/51 ‡ | | | 961,600 | | | | 2,404 | |
Pennsylvania Economic Development Financing Authority | | | | | | | | |
(Tapestry Moon Senior Housing Project) | | | | | | | | |
Series 2018A 144A 6.75% 12/1/53 # | | | 9,495,000 | | | | 9,200,845 | |
Prince George’s County, Maryland | | | | | | | | |
(Collington Episcopal Life Care Community) | | | | | | | | |
5.25% 4/1/47 | | | 2,000,000 | | | | 2,020,960 | |
Public Finance Authority, Wisconsin | | | | | | | | |
(Bancroft Neurohealth Project) | | | | | | | | |
Series A 144A 5.00% 6/1/36 # | | | 960,000 | | | | 1,032,778 | |
Series A 144A 5.125% 6/1/48 # | | | 1,375,000 | | | | 1,466,726 | |
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | | | | | | | | |
(Auxilio Mutuo) | | | | | | | | |
Series A 6.00% 7/1/33 | | | 5,630,000 | | | | 5,778,013 | |
Rochester, Minnesota | | | | | | | | |
(The Homestead at Rochester) | | | | | | | | |
Series A 6.875% 12/1/48 | | | 2,500,000 | | | | 2,689,800 | |
Salem, Oregon Hospital Facility Authority Revenue | | | | | | | | |
(Capital Manor) | | | | | | | | |
6.00% 5/15/47 | | | 1,500,000 | | | | 1,568,220 | |
San Buenaventura, California Revenue | | | | | | | | |
(Community Memorial Health System) | | | | | | | | |
7.50% 12/1/41 | | | 4,475,000 | | | | 4,711,235 | |
76
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Seminole County, Florida Industrial Development Authority Revenue | | | | | | | | |
(Legacy Pointe at UCF Project) | | | | | | | | |
Series A 5.50% 11/15/49 | | | 1,500,000 | | | $ | 1,368,345 | |
Series A 5.75% 11/15/54 | | | 6,000,000 | | | | 5,538,300 | |
Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue | | | | | | | | |
(The Farms at Bailey Station Project) | | | | | | | | |
5.75% 10/1/59 | | | 3,670,000 | | | | 3,463,783 | |
Southeastern Ohio Port Authority | | | | | | | | |
(Memorial Health Systems) | | | | | | | | |
5.00% 12/1/43 | | | 805,000 | | | | 812,672 | |
5.50% 12/1/43 | | | 1,250,000 | | | | 1,302,262 | |
St. Louis County, Missouri Industrial Development Authority | | | | | | | | |
(Nazareth Living Center Project) | | | | | | | | |
Series A 5.00% 8/15/35 | | | 600,000 | | | | 607,326 | |
Series A 5.125% 8/15/45 | | | 1,800,000 | | | | 1,809,720 | |
Suffolk County, New York Economic Development Corporation Revenue | | | | | | | | |
(Peconic Landing Southland) | | | | | | | | |
6.00% 12/1/40 | | | 575,000 | | | | 582,975 | |
Tarrant County, Texas Cultural Education Facilities Finance | | | | | | | | |
(Buckingham Senior Living Community) | | | | | | | | |
5.50% 11/15/45 ‡ | | | 3,000,000 | | | | 1,950,000 | |
(Buckner Senior Living - Ventana Project) | | | | | | | | |
6.75% 11/15/47 | | | 1,850,000 | | | | 1,998,407 | |
6.75% 11/15/52 | | | 3,300,000 | | | | 3,562,812 | |
Tempe, Arizona Industrial Development Authority Revenue | | | | | | | | |
(Friendship Village) | | | | | | | | |
Series A 6.25% 12/1/46 | | | 500,000 | | | | 507,115 | |
(Mirabella at ASU Project) | | | | | | | | |
Series A 144A 6.125% 10/1/47 # | | | 2,150,000 | | | | 2,216,371 | |
Series A 144A 6.125% 10/1/52 # | | | 2,570,000 | | | | 2,641,780 | |
University of North Carolina Board of Governors | | | | | | | | |
5.00% 2/1/49 | | | 21,855,000 | | | | 34,740,271 | |
Washington State Housing Finance Commission | | | | | | | | |
(Heron’s Key) | | | | | | | | |
Series A 144A 7.00% 7/1/45 # | | | 1,000,000 | | | | 1,077,690 | |
Series A 144A 7.00% 7/1/50 # | | | 3,625,000 | | | | 3,890,640 | |
77
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Healthcare Revenue Bonds (continued) | | | | | | | | |
Westminster, Maryland | | | | | | | | |
(Lutheran Village Millers Grant) | | | | | | | | |
6.00% 7/1/34 | | | 800,000 | | | $ | 837,152 | |
Series A 5.00% 7/1/24 | | | 1,185,000 | | | | 1,230,089 | |
Series A 6.125% 7/1/39 | | | 750,000 | | | | 782,738 | |
Series A 6.25% 7/1/44 | | | 2,500,000 | | | | 2,610,150 | |
Wisconsin Health & Educational Facilities Authority | | | | | | | | |
(Covenant Communities Project) | | | | | | | | |
Series B 5.00% 7/1/48 | | | 1,000,000 | | | | 970,680 | |
Series B 5.00% 7/1/53 | | | 945,000 | | | | 908,145 | |
Series C 7.00% 7/1/43 | | | 900,000 | | | | 807,858 | |
Series C 7.50% 7/1/53 | | | 1,000,000 | | | | 907,030 | |
(St. Camillus Health System) | | | | | | | | |
Series A 5.00% 11/1/46 | | | 2,000,000 | | | | 2,086,520 | |
Series A 5.00% 11/1/54 | | | 2,500,000 | | | | 2,583,375 | |
Wisconsin Public Finance Authority | | | | | | | | |
(Rose Villa Project) | | | | | | | | |
Series A 144A 5.75% 11/15/44 # | | | 2,000,000 | | | | 2,136,420 | |
| | | | | | | | |
| | | | | | | 342,260,056 | |
| | | | | | | | |
Housing Revenue Bond — 0.06% | | | | | | | | |
Independent Cities Finance Authority, California | | | | | | | | |
Series A 5.25% 5/15/44 | | | 750,000 | | | | 815,272 | |
| | | | | | | | |
| | | | | | | 815,272 | |
| | | | | | | | |
Lease Revenue Bonds — 3.63% | | | | | | | | |
California Municipal Finance Authority Revenue | | | | | | | | |
(Goodwill Industry Sacramento Valley) | | | | | | | | |
5.25% 1/1/45 | | | 1,295,000 | | | | 1,065,656 | |
(Goodwill Industry Sacramento Valley and | | | | | | | | |
Northern Nevada Project) | | | | | | | | |
Series A 144A 6.625% 1/1/32 # | | | 500,000 | | | | 492,345 | |
Series A 144A 6.875% 1/1/42 # | | | 1,500,000 | | | | 1,464,570 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(Lancer Plaza Project) | | | | | | | | |
5.875% 11/1/43 | | | 1,875,000 | | | | 1,971,563 | |
Industrial Development Authority of Phoenix, Arizona | | | | | | | | |
5.125% 2/1/34 | | | 1,000,000 | | | | 1,017,400 | |
5.375% 2/1/41 | | | 1,300,000 | | | | 1,319,903 | |
Metropolitan Pier & Exposition Authority, Illinois | | | | | | | | |
(McCormick Place Expansion Project) | | | | | | | | |
Series A 5.00% 6/15/50 | | | 4,135,000 | | | | 4,660,930 | |
78
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Lease Revenue Bonds (continued) | | | | | | | | |
Metropolitan Pier & Exposition Authority, Illinois | | | | | | | | |
(McCormick Place Expansion Project) | | | | | | | | |
Series A 5.00% 6/15/57 | | | 3,975,000 | | | $ | 4,370,632 | |
New Jersey Economic Development Authority | | | | | | | | |
Special Facility Revenue | | | | | | | | |
Series WW 5.25% 6/15/30 | | | 5,000,000 | | | | 5,673,000 | |
New Jersey Transportation Trust Fund Authority | | | | | | | | |
(Federal Highway Reimbursement Revenue) | | | | | | | | |
Series A 5.00% 6/15/31 | | | 5,450,000 | | | | 6,268,753 | |
(Transportation Program) | | | | | | | | |
Series AA 5.00% 6/15/25 | | | 1,000,000 | | | | 1,155,300 | |
Series AA 5.00% 6/15/44 | | | 2,900,000 | | | | 3,127,360 | |
New York Liberty Development Revenue | | | | | | | | |
(Class 3-3 World Trade Center Project) | | | | | | | | |
144A 7.25% 11/15/44 # | | | 8,000,000 | | | | 8,667,600 | |
Public Finance Authority, Wisconsin Airport Facilities Revenue | | | | | | | | |
(AFCO Investors II Portfolio) | | | | | | | | |
144A 5.75% 10/1/31 (AMT)# | | | 3,775,000 | | | | 3,914,449 | |
(Senior Obligation Group) | | | | | | | | |
Series B 5.00% 7/1/42 (AMT) | | | 2,625,000 | | | | 2,713,751 | |
Wise County, Texas | | | | | | | | |
(Parker County Junior College District) | | | | | | | | |
8.00% 8/15/34 | | | 1,000,000 | | | | 1,033,670 | |
| | | | | | | | |
| | | | | | | 48,916,882 | |
| | | | | | | | |
Local General Obligation Bonds — 1.65% | | | | | | | | |
Chicago, Illinois | | | | | | | | |
Series 2005D 5.50% 1/1/37 | | | 2,280,000 | | | | 2,484,767 | |
Series 2005D 5.50% 1/1/40 | | | 3,000,000 | | | | 3,255,420 | |
Series 2007E 5.50% 1/1/42 | | | 1,900,000 | | | | 2,057,586 | |
Series 2007F 5.50% 1/1/42 | | | 1,250,000 | | | | 1,353,675 | |
Series A 5.50% 1/1/49 | | | 770,000 | | | | 873,857 | |
Series C 5.00% 1/1/26 | | | 500,000 | | | | 562,200 | |
Chicago, Illinois Board of Education | | | | | | | | |
Series A 144A 7.00% 12/1/46 # | | | 2,500,000 | | | | 3,146,850 | |
Series G 5.00% 12/1/44 | | | 2,445,000 | | | | 2,665,612 | |
Series H 5.00% 12/1/46 | | | 4,225,000 | | | | 4,596,209 | |
Harris County, Texas Humble Independent School District | | | | | | | | |
Series A 4.00% 2/15/33 | | | 1,000,000 | | | | 1,248,070 | |
| | | | | | | | |
| | | | | | | 22,244,246 | |
| | | | | | | | |
79
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Pre-Refunded/Escrowed to Maturity Bonds — 3.11% | | | | | | | | |
California Municipal Finance Authority Revenue | | | | | | | | |
(Azusa Pacific University Project) | | | | | | | | |
Series B 144A 7.75% 4/1/31-21 #, § | | | 750,000 | | | $ | 782,925 | |
California Statewide Communities Development Authority Revenue | | | | | | | | |
(California Baptist University Project) | | | | | | | | |
7.50% 11/1/41-21 § | | | 1,000,000 | | | | 1,083,460 | |
Central Texas Regional Mobility Authority Revenue | | | | | | | | |
Senior Lien 6.00% 1/1/41-21 § | | | 1,890,000 | | | | 1,926,458 | |
Subordinate Lien 6.75% 1/1/41-21 § | | | 1,000,000 | | | | 1,021,390 | |
Clifton, Texas Higher Education Finance Corporation Revenue | | | | | | | | |
(Idea Public Schools) | | | | | | | | |
5.75% 8/15/41-21 § | | | 1,000,000 | | | | 1,051,610 | |
(Uplift Education) | | | | | | | | |
Series A 6.25% 12/1/45-20 § | | | 1,000,000 | | | | 1,014,810 | |
District of Columbia Revenue | | | | | | | | |
(Center of Strategic & International Studies) | | | | | | | | |
6.625% 3/1/41-21 § | | | 2,235,000 | | | | 2,305,291 | |
(KIPP Charter School) | | | | | | | | |
6.00% 7/1/48-23 § | | | 1,450,000 | | | | 1,682,768 | |
Foothill-Eastern Transportation Corridor Agency, California | | | | | | | | |
Series A 6.00% 1/15/49-24 § | | | 7,690,000 | | | | 9,175,554 | |
Illinois Railsplitter Tobacco Settlement Authority | | | | | | | | |
6.00% 6/1/28-21 § | | | 1,455,000 | | | | 1,518,307 | |
Louisiana Public Facilities Authority Revenue | | | | | | | | |
(Ochsner Clinic Foundation Project) | | | | | | | | |
6.50% 5/15/37-21 § | | | 1,705,000 | | | | 1,779,901 | |
Martin County, Florida Health Facilities Authority Revenue | | | | | | | | |
(Martin Memorial Medical Center) | | | | | | | | |
5.50% 11/15/42-21 § | | | 1,000,000 | | | | 1,063,380 | |
Nampa Development Corporation, Idaho Revenue 144A | | | | | | | | |
5.00% 9/1/31-24 #, § | | | 2,940,000 | | | | 3,546,787 | |
New York State | | | | | | | | |
Series A 5.25% 2/15/24-21 § | | | 2,000,000 | | | | 2,046,420 | |
North Texas Education Finance Revenue | | | | | | | | |
(Uplift Education) | | | | | | | | |
Series A 5.25% 12/1/47-22 § | | | 2,100,000 | | | | 2,270,226 | |
Onondaga, New York Civic Development Revenue | | | | | | | | |
(St. Joseph’s Hospital Health Center Project) | | | | | | | | |
4.50% 7/1/32-22 § | | | 1,000,000 | | | | 1,075,460 | |
80
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Pre-Refunded/Escrowed to Maturity Bonds (continued) | | | | | | | | |
Philadelphia, Pennsylvania Authority for Industrial Development Revenue | | | | | | | | |
(New Foundation Charter School Project) | | | | | | | | |
6.625% 12/15/41-22 § | | | 1,000,000 | | | $ | 1,140,770 | |
Southwestern Illinois Development Authority Revenue | | | | | | | | |
(Memorial Group) | | | | | | | | |
7.125% 11/1/30-23 § | | | 1,420,000 | | | | 1,718,427 | |
7.125% 11/1/43-23 § | | | 2,500,000 | | | | 3,025,400 | |
Travis County, Texas Health Facilities Development Corporation Revenue | | | | | | | | |
(Westminster Manor Project) | | | | | | | | |
7.125% 11/1/40-20 § | | | 1,000,000 | | | | 1,011,080 | |
University of Arizona Medical Center Hospital Revenue | | | | | | | | |
6.00% 7/1/39-21 § | | | 1,500,000 | | | | 1,572,420 | |
| | | | | | | | |
| | | | | | | 41,812,844 | |
| | | | | | | | |
Resource Recovery Revenue Bonds — 0.75% | | | | | | | | |
Blythe Township, Pennsylvania Solid Waste Authority Revenue | | | | | | | | |
7.75% 12/1/37 (AMT) | | | 3,000,000 | | | | 3,313,740 | |
Orange County, Florida Industrial Development Authority Revenue | | | | | | | | |
(Anuvia Florida LLC Project) | | | | | | | | |
Series A 144A 4.00% 7/1/48 (AMT)# | | | 2,665,000 | | | | 199,875 | |
Union County, New Jersey Improvement Authority | | | | | | | | |
(Aries Linden, LLC Project) 144A | | | | | | | | |
6.75% 12/1/41 (AMT)# | | | 7,000,000 | | | | 6,586,510 | |
| | | | | | | | |
| | | | | | | 10,100,125 | |
| | | | | | | | |
Special Tax Revenue Bonds — 9.08% | | | | | | | | |
Celebration Pointe, Florida Community Development District | | | | | | | | |
5.125% 5/1/45 | | | 1,915,000 | | | | 1,978,406 | |
Cherry Hill, Virginia Community Development Authority | | | | | | | | |
(Potomac Shores Project) | | | | | | | | |
144A 5.15% 3/1/35 # | | | 1,000,000 | | | | 1,018,050 | |
144A 5.40% 3/1/45 # | | | 2,000,000 | | | | 2,031,860 | |
Conley Road Transportation Development District, Missouri | | | | | | | | |
5.375% 5/1/47 | | | 5,200,000 | | | | 5,224,024 | |
81
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Dutchess County, New York Local Development Corporation Revenue | | | | | | | | |
(Anderson Center Services Inc. Project) | | | | | | | | |
6.00% 10/1/30 | | | 1,600,000 | | | $ | 1,602,480 | |
Fountain Urban Renewal Authority, Colorado | | | | | | | | |
(Improvement - South Academy Highland) | | | | | | | | |
Series A 5.50% 11/1/44 | | | 3,750,000 | | | | 3,844,912 | |
GDB Debt Recovery Authority of Puerto Rico | | | | | | | | |
(Taxable) | | | | | | | | |
7.50% 8/20/40 | | | 8,000,000 | | | | 5,490,000 | |
Glen Cove, New York Local Economic Assistance | | | | | | | | |
(Garvies Point Public Improvement Project) | | | | | | | | |
Series A 5.00% 1/1/56 | | | 2,000,000 | | | | 2,064,440 | |
Hickory Chase Community Authority Revenue, Ohio | | | | | | | | |
(Hickory Chase Project) | | | | | | | | |
Senior Series A 144A 5.00% 12/1/40 # | | | 1,410,000 | | | | 1,431,263 | |
Juban Crossing Economic Development District, Louisiana | | | | | | | | |
(General Infrastructure Projects) | | | | | | | | |
Series C 144A 7.00% 9/15/44 # | | | 3,215,000 | | | | 2,789,077 | |
(Road Projects) | | | | | | | | |
Series A 144A 7.00% 9/15/44 # | | | 2,050,000 | | | | 1,778,416 | |
Kansas City, Missouri Land Clearance Redevelopment Authority Revenue | | | | | | | | |
(Convention Centre Hotel Project - TIF Financing) | | | | | | | | |
Series B 144A 5.00% 2/1/40 # | | | 935,000 | | | | 980,431 | |
Series B 144A 5.00% 2/1/50 # | | | 1,825,000 | | | | 1,901,778 | |
Midtown Miami, Florida Community Development District | | | | | | | | |
(Parking Garage Project) | | | | | | | | |
Series A 5.00% 5/1/37 | | | 500,000 | | | | 516,575 | |
Mobile, Alabama Improvement District | | | | | | | | |
(McGowin Park Project) | | | | | | | | |
Series A 5.25% 8/1/30 | | | 1,000,000 | | | | 1,016,200 | |
Series A 5.50% 8/1/35 | | | 1,300,000 | | | | 1,312,064 | |
Mosaic District, Virginia Community Development Authority Revenue | | | | | | | | |
Series A 6.875% 3/1/36 | | | 1,500,000 | | | | 1,523,250 | |
New York City, New York Industrial Development Agency | | | | | | | | |
(Pilot - Queens Baseball Stadium) | | | | | | | | |
5.00% 1/1/22 (AMBAC) | | | 1,000,000 | | | | 1,000,210 | |
(Yankee Stadium) | | | | | | | | |
7.00% 3/1/49 (AGC) | | | 1,000,000 | | | | 1,005,540 | |
82
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Special Tax Revenue Bonds (continued) | | | | | | | | |
Northampton County, Pennsylvania Industrial Development Authority | | | | | | | | |
(Route 33 Project) | | | | | | | | |
7.00% 7/1/32 | | | 2,260,000 | | | $ | 2,432,687 | |
Prairie Center Metropolitan District No 3, Colorado | | | | | | | | |
Series A 144A 5.00% 12/15/41 # | | | 2,000,000 | | | | 2,040,920 | |
Public Finance Authority Revenue, Wisconsin | | | | | | | | |
(American Dream @ Meadowlands Project) | | | | | | | | |
144A 7.00% 12/1/50 # | | | 5,065,000 | | | | 4,403,156 | |
Puerto Rico Sales Tax Financing Revenue | | | | | | | | |
(Restructured) | | | | | | | | |
Series A-1 4.75% 7/1/53 | | | 36,970,000 | | | | 38,856,949 | |
Series A-1 5.00% 7/1/58 | | | 15,610,000 | | | | 16,666,797 | |
Series A-1 5.47% 7/1/46 ^ | | | 19,225,000 | | | | 5,515,076 | |
Series A-2 4.784% 7/1/58 | | | 3,301,000 | | | | 3,476,976 | |
Richmond Heights, Missouri Tax Increment & Transaction Sales Tax Revenue Improvement | | | | | | | | |
(Francis Place Redevelopment Project) | | | | | | | | |
5.625% 11/1/25 | | | 955,000 | | | | 955,115 | |
St. Louis County, Missouri Industrial Development Authority | | | | | | | | |
(Manchester Ballas Community) | | | | | | | | |
Series A 144A 5.00% 9/1/38 # | | | 1,050,000 | | | | 1,020,054 | |
Series A 144A 5.25% 9/1/45 # | | | 3,540,000 | | | | 3,406,577 | |
St. Louis, Missouri Industrial Development Authority Tax Increment Revenue Improvement | | | | | | | | |
(Grand Center Redevelopment Project) | | | | | | | | |
6.375% 12/1/25 | | | 675,000 | | | | 675,513 | |
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | | | | | | | | |
(Sales Tax Vacation Village Project) | | | | | | | | |
Series A 6.00% 9/1/35 | | | 4,690,000 | | | | 4,244,638 | |
| | | | | | | | |
| | | | | | | 122,203,434 | |
| | | | | | | | |
State General Obligation Bonds — 7.84% | | | | | | | | |
California State | | | | | | | | |
Various Purposes | | | | | | | | |
(Bid Group A) | | | | | | | | |
5.00% 10/1/28 | | | 5,000,000 | | | | 6,676,150 | |
(Bid Group B) | | | | | | | | |
5.00% 8/1/27 | | | 5,000,000 | | | | 6,301,750 | |
Commonwealth of Massachusetts | | | | | | | | |
Series B 5.00% 1/1/32 | | | 5,000,000 | | | | 6,415,400 | |
83
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
State General Obligation Bonds (continued) | | | | | | | | |
Commonwealth of Puerto Rico | | | | | | | | |
Series A 5.25% 7/1/31 ‡ | | | 6,980,000 | | | $ | 4,981,975 | |
Series A 5.375% 7/1/33 ‡ | | | 900,000 | | | | 635,625 | |
Series A 6.00% 7/1/38 ‡ | | | 4,520,000 | | | | 3,248,750 | |
Series A 8.00% 7/1/35 ‡ | | | 9,140,000 | | | | 5,586,825 | |
(Public Improvement) | | | | | | | | |
Series A 5.00% 7/1/41 ‡ | | | 4,525,000 | | | | 2,833,781 | |
Series A 5.125% 7/1/37 ‡ | | | 3,225,000 | | | | 2,096,250 | |
Series A 5.25% 7/1/30 ‡ | | | 1,955,000 | | | | 1,395,381 | |
Series A 5.50% 7/1/39 ‡ | | | 165,000 | | | | 109,313 | |
Series C 6.00% 7/1/39 ‡ | | | 9,486,000 | | | | 6,675,773 | |
Series D 5.75% 7/1/41 ‡ | | | 11,750,000 | | | | 7,740,312 | |
Illinois State | | | | | | | | |
5.00% 1/1/28 | | | 1,190,000 | | | | 1,322,138 | |
5.00% 5/1/36 | | | 1,710,000 | | | | 1,805,486 | |
5.00% 11/1/36 | | | 2,245,000 | | | | 2,444,176 | |
5.00% 2/1/39 | | | 2,180,000 | | | | 2,285,338 | |
5.125% 12/1/29 | | | 1,310,000 | | | | 1,497,395 | |
5.50% 5/1/39 | | | 6,000,000 | | | | 7,016,760 | |
Series A 5.00% 10/1/30 | | | 2,000,000 | | | | 2,286,180 | |
Series A 5.00% 12/1/34 | | | 2,100,000 | | | | 2,330,601 | |
Series A 5.00% 4/1/38 | | | 2,805,000 | | | | 2,918,266 | |
Series B 4.00% 11/1/35 | | | 2,000,000 | | | | 2,071,780 | |
Series D 5.00% 11/1/28 | | | 4,700,000 | | | | 5,279,181 | |
Minnesota State | | | | | | | | |
Series A 5.00% 8/1/30 | | | 5,000,000 | | | | 6,603,600 | |
Ohio State | | | | | | | | |
(Infrastructure Improvement) | | | | | | | | |
Series A 5.00% 9/1/32 | | | 5,000,000 | | | | 6,497,150 | |
Washington State | | | | | | | | |
(Various Purpose) | | | | | | | | |
Series C 5.00% 2/1/28 | | | 5,000,000 | | | | 6,561,500 | |
| | | | | | | | |
| | | | | | | 105,616,836 | |
| | | | | | | | |
Transportation Revenue Bonds — 2.18% | | | | | | | | |
Dallas, Texas Fort Worth International Airport | | | | | | | | |
Series B 5.00% 11/1/33 | | | 5,000,000 | | | | 6,617,200 | |
Denver, Colorado Airport System Revenue | | | | | | | | |
Series A 5.00% 11/15/21 (AMT) | | | 55,000 | | | | 57,998 | |
Houston, Texas Airport System Revenue | | | | | | | | |
Subordinate Lien | | | | | | | | |
Series A 5.00% 7/1/25 (AMT) | | | 1,000,000 | | | | 1,033,580 | |
84
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Transportation Revenue Bonds (continued) | | | | | | | | |
Kentucky Public Transportation Infrastructure Authority | | | | | | | | |
(1st Tier - Downtown Crossing) | | | | | | | | |
Series A 5.75% 7/1/49 | | | 1,800,000 | | | $ | 1,926,702 | |
Series A 6.00% 7/1/53 | | | 1,290,000 | | | | 1,385,847 | |
Long Beach, California Marina Revenue | | | | | | | | |
5.00% 5/15/40 | | | 1,000,000 | | | | 1,086,960 | |
Phoenix, Arizona Civic Improvement | | | | | | | | |
(Junior Lien) | | | | | | | | |
Series A 5.00% 7/1/40 | | | 30,000 | | | | 34,317 | |
Port of Beaumont Navigation District of Jefferson County, Texas | | | | | | | | |
(Jefferson Gulf Coast Energy Project) | | | | | | | | |
Series A 144A 4.00% 1/1/50 (AMT)# | | | 3,875,000 | | | | 3,882,479 | |
Riverside County, California Transportation Senior Lien | | | | | | | | |
Series A 5.75% 6/1/48 | | | 1,000,000 | | | | 1,089,420 | |
South Jersey Port, New Jersey | | | | | | | | |
(Subordinated Marine Terminal Revenue) | | | | | | | | |
Series A 5.00% 1/1/49 | | | 1,110,000 | | | | 1,260,993 | |
Series B 5.00% 1/1/48 (AMT) | | | 2,000,000 | | | | 2,179,860 | |
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | | | | | | | | |
(NTE Mobility Partners Segments 3 LLC Segment 3C Project) | | | | | | | | |
5.00% 6/30/58 (AMT) | | | 1,500,000 | | | | 1,761,600 | |
(NTE Mobility) | | | | | | | | |
6.75% 6/30/43 (AMT) | | | 1,905,000 | | | | 2,172,938 | |
7.00% 12/31/38 (AMT) | | | 1,335,000 | | | | 1,534,556 | |
Virginia Small Business Financing Authority | | | | | | | | |
(Transform 66 P3 Project) | | | | | | | | |
5.00% 12/31/56 (AMT) | | | 2,975,000 | �� | | | 3,347,589 | |
| | | | | | | | |
| | | | | | | 29,372,039 | |
| | | | | | | | |
Water & Sewer Revenue Bonds — 2.90% | | | | | | | | |
California State Department of Water Resources | | | | | | | | |
Series BB 5.00% 12/1/35 | | | 2,000,000 | | | | 2,737,360 | |
Chicago, Illinois Waterworks Revenue | | | | | | | | |
(2nd Lien) | | | | | | | | |
5.00% 11/1/26 | | | 180,000 | | | | 215,682 | |
5.00% 11/1/28 | | | 30,000 | | | | 36,103 | |
Dominion, Colorado Water & Sanitation District Revenue | | | | | | | | |
6.00% 12/1/46 | | | 3,920,000 | | | | 4,093,695 | |
85
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
Municipal Bonds (continued) | | | | | | | | |
Water & Sewer Revenue Bonds (continued) | | | | | | | | |
Jefferson County, Alabama Sewer Revenue | | | | | | | | |
(Senior Lien-Warrants) | | | | | | | | |
Series A 5.50% 10/1/53 (AGM) | | | 2,500,000 | | | $ | 2,791,025 | |
(Sub Lien-Warrants) | | | | | | | | |
Series D 6.50% 10/1/53 | | | 14,000,000 | | | | 16,330,300 | |
Series D 7.00% 10/1/51 | | | 5,000,000 | | | | 5,911,000 | |
Texas Water Development Board | | | | | | | | |
(Master Trust) | | | | | | | | |
Series B 5.00% 4/15/31 | | | 5,240,000 | | | | 6,930,424 | |
| | | | | | | | |
| | | | | | | 39,045,589 | |
| | | | | | | | |
Total Municipal Bonds (cost $1,259,502,446) | | | | | | | 1,312,478,349 | |
| | | | | | | | |
| | | | | | | | |
Short-Term Investments — 1.44% | | | | | | | | |
Variable Rate Demand Notes — 1.44%¤ | | | | | | | | |
Mississippi Business Finance Corporation Gulf Opportunity Zone Industrial Development Revenue | | | | | | | | |
(Chevron U.S.A. Inc. Project) | | | | | | | | |
Series B 0.03% 12/1/30 | | | 600,000 | | | | 600,000 | |
Series B 0.03% 11/1/35 | | | 4,450,000 | | | | 4,450,000 | |
Series G 0.03% 11/1/35 | | | 1,600,000 | | | | 1,600,000 | |
Series K 0.03% 11/1/35 | | | 650,000 | | | | 650,000 | |
Series L 0.03% 11/1/35 | | | 1,000,000 | | | | 1,000,000 | |
New York City, New York Water Finance Authority Water & Sewer System Revenue | | | | | | | | |
Series D-22 0.02% 6/15/43 (SPA - JPMorgan Chase Bank N.A.) | | | 4,400,000 | | | | 4,400,000 | |
Philadelphia, Pennsylvania Hospitals & Higher Education Facilities Authority | | | | | | | | |
(The Children’s Hospital of Philadelphia Project) | | | | | | | | |
Series B | | | | | | | | |
0.01% 7/1/41 (SPA - Bank Of America N.A.) | | | 6,700,000 | | | | 6,700,000 | |
| | | | | | | | |
Total Short-Term Investments (cost $19,400,000) | | | | | | | 19,400,000 | |
| | | | | | | | |
Total Value of Securities — 98.90%
(cost $1,278,902,446) | | | | | | $ | 1,331,878,349 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2020, the aggregate value of Rule 144A securities was $327,662,966, which represents 24.33% of the Fund’s net assets. See Note 9 in “Notes to financial statements.” |
86
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| ‡ | Non-income producing security. Security is currently in default. |
| • | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 9 in “Notes to financial statements.” |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2020. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
KIPP – Knowledge is Power Program
L.P. – Limited Partnership
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
N.A. – National Association
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
87
| | |
Statements of assets and liabilities | | August 31, 2020 |
| | | | | | | | | | | | |
| | | Delaware | | | Delaware | | | Delaware | |
| | | Tax-Free | | | Tax-Free USA | | | National High-Yield | |
| | | USA Fund | | | Intermediate Fund | | | Municipal Bond Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value* | | $ | 619,473,991 | | | $ | 566,791,750 | | | $ | 1,331,878,349 | |
Cash | | | 5,877,768 | | | | 582,942 | | | | 3,017,000 | |
Receivable for securities sold | | | — | | | | 3,683,000 | | | | — | |
Interest receivable | | | 6,348,771 | | | | 5,957,428 | | | | 14,001,232 | |
Receivable for fund shares sold | | | 1,224,940 | | | | 1,412,399 | | | | 2,111,384 | |
| | | | | | | | | | | | |
Total Assets | | | 632,925,470 | | | | 578,427,519 | | | | 1,351,007,965 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for securities purchased | | | 6,396,580 | | | | 5,386,126 | | | | — | |
Distribution payable | | | 438,663 | | | | 361,779 | | | | 1,107,736 | |
Payable for fund shares redeemed | | | 379,093 | | | | 627,054 | | | | 2,063,058 | |
Investment management fees payable to affiliates | | | 217,881 | | | | 165,603 | | | | 551,144 | |
Distribution fees payable to affiliates | | | 108,914 | | | | 23,756 | | | | 98,570 | |
Other accrued expenses | | | 74,098 | | | | 69,405 | | | | 180,782 | |
Dividend disbursing and transfer agent fees and expenses payable to non-affiliates | | | 47,538 | | | | 56,007 | | | | 224,541 | |
Dividend disbursing and transfer agent fees and expenses payable to affiliates | | | 4,853 | | | | 4,486 | | | | 10,610 | |
Trustees’ fees and expenses payable to affiliates | | | 4,418 | | | | 4,171 | | | | 9,866 | |
Accounting and administration expenses payable to affiliates | | | 2,125 | | | | 1,989 | | | | 4,244 | |
Legal fees payable to affiliates | | | 1,059 | | | | 1,000 | | | | 2,365 | |
| | | | | | | | | | | | |
Total Liabilities | | | 7,675,222 | | | | 6,701,376 | | | | 4,252,916 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 625,250,248 | | | $ | 571,726,143 | | | $ | 1,346,755,049 | |
| | | | | | | | | | | | |
| | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 579,151,078 | | | $ | 534,506,859 | | | $ | 1,291,586,038 | |
Total distributable earnings (loss) | | | 46,099,170 | | | | 37,219,284 | | | | 55,169,011 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 625,250,248 | | | $ | 571,726,143 | | | $ | 1,346,755,049 | |
| | | | | | | | | | | | |
88
| | | | | | | | | | | | |
| | | Delaware Tax-Free USA Fund | | | Delaware Tax-Free USA Intermediate Fund | | | Delaware National High-Yield Municipal Bond Fund | |
Net Asset Value | | | | | | | | | | | | |
Class A: | | | | | | | | | | | | |
Net assets | | $ | 478,671,126 | | | $ | 106,135,669 | | | $ | 182,214,447 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 40,081,462 | | | | 8,656,126 | | | | 16,337,369 | |
Net asset value per share | | $ | 11.94 | | | $ | 12.26 | | | $ | 11.15 | |
Sales charge | | | 4.50 | % | | | 2.75 | % | | | 4.50 | % |
Offering price per share, equal to net asset value per share / (1 - sales charge) | | $ | 12.50 | | | $ | 12.61 | | | $ | 11.68 | |
Class C: | | | | | | | | | | | | |
Net assets | | $ | 10,778,023 | | | $ | 11,863,804 | | | $ | 68,992,718 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 902,340 | | | | 968,222 | | | | 6,161,571 | |
Net asset value per share | | $ | 11.94 | | | $ | 12.25 | | | $ | 11.20 | |
Institutional Class: | | | | | | | | | | | | |
Net assets | | $ | 135,801,099 | | | $ | 453,726,670 | | | $ | 1,095,547,884 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | 11,286,101 | | | | 36,651,063 | | | | 97,330,344 | |
Net asset value per share | | $ | 12.03 | | | $ | 12.38 | | | $ | 11.26 | |
| | | |
| | | | | | | | | | | | |
*Investments, at cost | | $ | 576,391,612 | | | $ | 527,828,126 | | | $ | 1,278,902,446 | |
See accompanying notes, which are an integral part of the financial statements.
89
| | |
| Statements of operations | | Year ended August 31, 2020 |
| | | | | | | | | | | | |
| | | Delaware Tax-Free USA Fund | | | Delaware Tax-Free USA Intermediate Fund | | | Delaware National High-Yield Municipal Bond Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 24,482,597 | | | $ | 19,306,347 | | | $ | 67,266,043 | |
| | | |
Expenses: | | | | | | | | | | | | |
Management fees | | | 3,275,489 | | | | 2,727,019 | | | | 7,004,860 | |
Distribution expenses - Class A | | | 1,122,683 | | | | 276,522 | | | | 492,324 | |
Distribution expenses - Class C | | | 135,167 | | | | 182,819 | | | | 826,809 | |
Dividend disbursing and transfer agent fees and expenses | | | 469,762 | | | | 466,136 | | | | 1,150,553 | |
Accounting and administration expenses | | | 139,050 | | | | 129,686 | | | | 268,583 | |
Registration fees | | | 86,088 | | | | 74,622 | | | | 138,344 | |
Legal fees | | | 49,282 | | | | 44,491 | | | | 126,058 | |
Audit and tax fees | | | 45,660 | | | | 45,660 | | | | 45,660 | |
Reports and statements to shareholders expenses | | | 37,166 | | | | 32,562 | | | | 73,126 | |
Trustees’ fees and expenses | | | 34,919 | | | | 31,622 | | | | 80,379 | |
Custodian fees | | | 21,935 | | | | 15,766 | | | | 172,350 | |
Other | | | 45,045 | | | | 47,742 | | | | 94,517 | |
| | | | | | | | | | | | |
| | | 5,462,246 | | | | 4,074,647 | | | | 10,473,563 | |
Less expenses waived | | | (812,197 | ) | | | (871,986 | ) | | | (809,915 | ) |
Less waived distribution expenses - Class A | | | — | | | | (110,609 | ) | | | — | |
Less expenses paid indirectly | | | (3,260 | ) | | | (4,112 | ) | | | (829 | ) |
| | | | | | | | | | | | |
Total operating expenses | | | 4,646,789 | | | | 3,087,940 | | | | 9,662,819 | |
| | | | | | | | | | | | |
Net Investment Income | | | 19,835,808 | | | | 16,218,407 | | | | 57,603,224 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain (Loss): | | | | | | | | | | | | |
Net realized gain on investments | | | 3,980,350 | | | | 126,778 | | | | 13,180,732 | |
Net change in unrealized appreciation (depreciation) of investments | | | (6,778,517 | ) | | | (1,616,337 | ) | | | (65,116,746 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss | | | (2,798,167 | ) | | | (1,489,559 | ) | | | (51,936,014 | ) |
| | | | | | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 17,037,641 | | | $ | 14,728,848 | | | $ | 5,667,210 | |
| | | | | | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
90
Statements of changes in net assets
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 19,835,808 | | | $ | 19,754,538 | |
Net realized gain | | | 3,980,350 | | | | 1,048,183 | |
Net change in unrealized appreciation (depreciation) | | | (6,778,517 | ) | | | 23,917,474 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 17,037,641 | | | | 44,720,195 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (16,057,427 | ) | | | (16,273,524 | ) |
Class C | | | (377,485 | ) | | | (472,923 | ) |
Institutional Class | | | (5,191,254 | ) | | | (3,153,841 | ) |
| | | | | | | | |
| | | (21,626,166 | ) | | | (19,900,288 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 94,406,974 | | | | 109,025,107 | |
Class C | | | 2,492,529 | | | | 2,698,828 | |
Institutional Class | | | 65,805,952 | | | | 93,831,044 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 14,383,519 | | | | 14,655,203 | |
Class C | | | 329,893 | | | | 404,200 | |
Institutional Class | | | 4,750,966 | | | | 2,682,248 | |
| | | | | | | | |
| | | 182,169,833 | | | | 223,296,630 | |
| | | | | | | | |
91
Statements of changes in net assets
Delaware Tax-Free USA Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (99,923,072 | ) | | $ | (152,307,083 | ) |
Class C | | | (7,874,648 | ) | | | (6,533,225 | ) |
Institutional Class | | | (66,849,145 | ) | | | (44,281,845 | ) |
| | | | | | | | |
| | | (174,646,865 | ) | | | (203,122,153 | ) |
| | | | | | | | |
Increase in net assets derived from capital share transactions | | | 7,522,968 | | | | 20,174,477 | |
| | | | | | | | |
Net Increase in Net Assets | | | 2,934,443 | | | | 44,994,384 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 622,315,805 | | | | 577,321,421 | |
| | | | | | | | |
End of year | | $ | 625,250,248 | | | $ | 622,315,805 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
92
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 16,218,407 | | | $ | 16,667,720 | |
Net realized gain | | | 126,778 | | | | 1,077,571 | |
Net change in unrealized appreciation (depreciation) | | | (1,616,337 | ) | | | 21,366,521 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 14,728,848 | | | | 39,111,812 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (3,184,081 | ) | | | (3,886,242 | ) |
Class C | | | (370,025 | ) | | | (565,999 | ) |
Institutional Class | | | (12,664,301 | ) | | | (12,215,479 | ) |
| | | | | | | | |
| | | (16,218,407 | ) | | | (16,667,720 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 30,135,038 | | | | 27,623,937 | |
Class C | | | 1,791,499 | | | | 3,447,342 | |
Institutional Class | | | 145,582,678 | | | | 160,249,995 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 2,926,566 | | | | 3,607,123 | |
Class C | | | 333,101 | | | | 508,002 | |
Institutional Class | | | 10,253,302 | | | | 9,563,643 | |
| | | | | | | | |
| | | 191,022,184 | | | | 205,000,042 | |
| | | | | | | | |
93
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (50,173,924 | ) | | $ | (49,240,907 | ) |
Class C | | | (13,003,690 | ) | | | (10,079,399 | ) |
Institutional Class | | | (101,023,651 | ) | | | (163,828,572 | ) |
| | | | | | | | |
| | | (164,201,265 | ) | | | (223,148,878 | ) |
| | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 26,820,919 | | | | (18,148,836 | ) |
| | | | | | | | |
Net Increase in Net Assets | | | 25,331,360 | | | | 4,295,256 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 546,394,783 | | | | 542,099,527 | |
| | | | | | | | |
End of year | | $ | 571,726,143 | | | $ | 546,394,783 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
94
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | |
Net investment income | | $ | 57,603,224 | | | $ | 57,113,679 | |
Net realized gain | | | 13,180,732 | | | | 3,014,071 | |
Net change in unrealized appreciation (depreciation) | | | (65,116,746 | ) | | | 55,266,412 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 5,667,210 | | | | 115,394,162 | |
| | | | | | | | |
| | |
Dividends and Distributions to Shareholders from: | | | | | | | | |
Distributable earnings: | | | | | | | | |
Class A | | | (7,762,606 | ) | | | (8,113,223 | ) |
Class C | | | (2,642,753 | ) | | | (3,047,818 | ) |
Institutional Class | | | (46,586,746 | ) | | | (45,407,727 | ) |
| | | | | | | | |
| | | (56,992,105 | ) | | | (56,568,768 | ) |
| | | | | | | | |
| | |
Capital Share Transactions: | | | | | | | | |
Proceeds from shares sold: | | | | | | | | |
Class A | | | 64,182,912 | | | | 54,097,913 | |
Class C | | | 10,269,059 | | | | 14,629,646 | |
Institutional Class | | | 340,902,541 | | | | 377,244,099 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | |
Class A | | | 7,046,701 | | | | 7,392,441 | |
Class C | | | 2,408,413 | | | | 2,752,227 | |
Institutional Class | | | 37,810,611 | | | | 37,356,231 | |
| | | | | | | | |
| | | 462,620,237 | | | | 493,472,557 | |
| | | | | | | | |
95
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
| | | | | | | | |
| | | Year ended | |
| | | 8/31/20 | | | 8/31/19 | |
Capital Share Transactions (continued): | | | | | | | | |
Cost of shares redeemed: | | | | | | | | |
Class A | | $ | (88,787,279 | ) | | $ | (61,870,843 | ) |
Class C | | | (31,832,862 | ) | | | (22,089,760 | ) |
Institutional Class | | | (385,626,313 | ) | | | (336,446,245 | ) |
| | | | | | | | |
| | | (506,246,454 | ) | | | (420,406,848 | ) |
| | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | (43,626,217 | ) | | | 73,065,709 | |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (94,951,112 | ) | | | 131,891,103 | |
Net Assets: | | | | | | | | |
Beginning of year | | | 1,441,706,161 | | | | 1,309,815,058 | |
| | | | | | | | |
End of year | | $ | 1,346,755,049 | | | $ | 1,441,706,161 | |
| | | | | | | | |
See accompanying notes, which are an integral part of the financial statements.
96
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Financial highlights
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
98
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 11.96 | | | $ | 11.44 | | | $ | 11.70 | | | $ | 12.22 | | | $ | 11.83 | |
| | | | | |
| | | 0.38 | | | | 0.41 | | | | 0.42 | | | | 0.43 | | | | 0.42 | |
| | | 0.01 | | | | 0.52 | | | | (0.26 | ) | | | (0.40 | ) | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.39 | | | | 0.93 | | | | 0.16 | | | | 0.03 | | | | 0.81 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.38 | ) | | | (0.41 | ) | | | (0.42 | ) | | | (0.43 | ) | | | (0.42 | ) |
| | | (0.03 | ) | | | — | 2 | | | — | | | | (0.12 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.41 | ) | | | (0.41 | ) | | | (0.42 | ) | | | (0.55 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 11.94 | | | $ | 11.96 | | | $ | 11.44 | | | $ | 11.70 | | | $ | 12.22 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 3.44% | | | | 8.35% | | | | 1.44% | | | | 0.41% | | | | 7.00% | |
| | | | | |
| | $ | 478,671 | | | $ | 472,153 | | | $ | 48,117 | | | $ | 415,314 | | | $ | 493,408 | |
| | | 0.81% | | | | 0.81% | | | | 0.81% | | | | 0.81% | | | | 0.81% | |
| | | | | |
| | | 0.95% | | | | 0.95% | | | | 0.96% | | | | 0.96% | | | | 0.95% | |
| | | 3.24% | | | | 3.55% | | | | 3.66% | | | | 3.71% | | | | 3.52% | |
| | | | | |
| | | 3.10% | | | | 3.41% | | | | 3.51% | | | | 3.56% | | | | 3.38% | |
| | | | 77% | | | | 43% | | | | 42% | | | | 33% | | | | 33% | |
99
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
100
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 11.96 | | | $ | 11.44 | | | $ | 11.70 | | | $ | 12.22 | | | $ | 11.83 | |
| | | | | |
| | | 0.29 | | | | 0.32 | | | | 0.34 | | | | 0.34 | | | | 0.33 | |
| | | 0.01 | | | | 0.52 | | | | (0.26 | ) | | | (0.40 | ) | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.30 | | | | 0.84 | | | | 0.08 | | | | (0.06 | ) | | | 0.72 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.29 | ) | | | (0.32 | ) | | | (0.34 | ) | | | (0.34 | ) | | | (0.33 | ) |
| | | (0.03 | ) | | | — | 2 | | | — | | | | (0.12 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.32 | ) | | | (0.32 | ) | | | (0.34 | ) | | | (0.46 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 11.94 | | | $ | 11.96 | | | $ | 11.44 | | | $ | 11.70 | | | $ | 12.22 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2.66% | | | | 7.55% | | | | 0.68% | | | | (0.35% | ) | | | 6.19% | |
| | | | | |
| | $ | 10,778 | | | $ | 16,051 | | | $ | 18,808 | | | $ | 27,397 | | | $ | 31,545 | |
| | | 1.56% | | | | 1.56% | | | | 1.56% | | | | 1.56% | | | | 1.56% | |
| | | | | |
| | | 1.70% | | | | 1.70% | | | | 1.71% | | | | 1.71% | | | | 1.70% | |
| | | 2.49% | | | | 2.80% | | | | 2.91% | | | | 2.96% | | | | 2.77% | |
| | | | | |
| | | 2.35% | | | | 2.66% | | | | 2.76% | | | | 2.81% | | | | 2.63% | |
| | | | 77% | | | | 43% | | | | 42% | | | | 33% | | | | 33% | |
101
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
102
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 12.05 | | | $ | 11.52 | | | $ | 11.79 | | | $ | 12.31 | | | $ | 11.91 | |
| | | | | |
| | | 0.41 | | | | 0.44 | | | | 0.45 | | | | 0.46 | | | | 0.46 | |
| �� | | 0.01 | | | | 0.53 | | | | (0.27 | ) | | | (0.40 | ) | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.42 | | | | 0.97 | | | | 0.18 | | | | 0.06 | | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.41 | ) | | | (0.44 | ) | | | (0.45 | ) | | | (0.46 | ) | | | (0.46 | ) |
| | | (0.03 | ) | | | — | 2 | | | — | | | | (0.12 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.44 | ) | | | (0.44 | ) | | | (0.45 | ) | | | (0.58 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 12.03 | | | $ | 12.05 | | | $ | 11.52 | | | $ | 11.79 | | | $ | 12.31 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 3.70% | | | | 8.68% | | | | 1.61% | | | | 0.68% | | | | 7.32% | |
| | | | | |
| | $ | 135,801 | | | $ | 134,112 | | | $ | 77,396 | | | $ | 62,872 | | | $ | 45,696 | |
| | | 0.56% | | | | 0.56% | | | | 0.56% | | | | 0.56% | | | | 0.56% | |
| | | | | |
| | | 0.70% | | | | 0.70% | | | | 0.71% | | | | 0.71% | | | | 0.70% | |
| | | 3.49% | | | | 3.80% | | | | 3.91% | | | | 3.96% | | | | 3.77% | |
| | | | | |
| | | 3.35% | | | | 3.66% | | | | 3.76% | | | | 3.81% | | | | 3.63% | |
| | | | 77% | | | | 43% | | | | 42% | | | | 33% | | | | 33% | |
103
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects 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.
104
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 12.28 | | | $ | 11.76 | | | $ | 12.06 | | | $ | 12.38 | | | $ | 12.04 | |
| | | | | |
| | | 0.35 | | | | 0.37 | | | | 0.37 | | | | 0.35 | | | | 0.35 | |
| | | (0.02 | ) | | | 0.52 | | | | (0.30 | ) | | | (0.32 | ) | | | 0.34 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.33 | | | | 0.89 | | | | 0.07 | | | | 0.03 | | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.35 | ) | | | (0.37 | ) | | | (0.37 | ) | | | (0.35 | ) | | | (0.35 | ) |
| | | — | | | | — | | | | — | | | | — | 2 | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.35 | ) | | | (0.37 | ) | | | (0.37 | ) | | | (0.35 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 12.26 | | | $ | 12.28 | | | $ | 11.76 | | | $ | 12.06 | | | $ | 12.38 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2.76% | | | | 7.71% | | | | 0.57% | | | | 0.35% | | | | 5.79% | |
| | | | | |
| | $ | 106,135 | | | $ | 123,691 | | | $ | 136,653 | | | $ | 164,154 | | | $ | 188,034 | |
| | | 0.65% | | | | 0.65% | | | | 0.71% | | | | 0.75% | | | | 0.75% | |
| | | | | |
| | | 0.91% | | | | 0.91% | | | | 0.92% | | | | 0.93% | | | | 0.92% | |
| | | 2.87% | | | | 3.11% | | | | 3.10% | | | | 2.92% | | | | 2.84% | |
| | | | | |
| | | 2.61% | | | | 2.85% | | | | 2.89% | | | | 2.74% | | | | 2.67% | |
| | | | 27% | | | | 25% | | | | 32% | | | | 26% | | | | 35% | |
105
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
106
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 12.27 | | | $ | 11.75 | | | $ | 12.05 | | | $ | 12.37 | | | $ | 12.03 | |
| | | | | |
| | | 0.24 | | | | 0.27 | | | | 0.27 | | | | 0.25 | | | | 0.24 | |
| | | (0.02 | ) | | | 0.52 | | | | (0.30 | ) | | | (0.32 | ) | | | 0.35 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.22 | | | | 0.79 | | | | (0.03 | ) | | | (0.07 | ) | | | 0.59 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.24 | ) | | | (0.27 | ) | | | (0.27 | ) | | | 0.25 | | | | (0.25 | ) |
| | | — | | | | — | | | | — | | | | — | 2 | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.24 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.25 | ) | | | (0.25 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 12.25 | | | $ | 12.27 | | | $ | 11.75 | | | $ | 12.05 | | | $ | 12.37 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 1.89% | | | | 6.81% | | | | (0.28% | ) | | | (0.50% | ) | | | 4.90% | |
| | | | | |
| | $ | 11,864 | | | $ | 22,874 | | | $ | 28,002 | | | $ | 40,402 | | | $ | 49,515 | |
| | | 1.50% | | | | 1.50% | | | | 1.56% | | | | 1.60% | | | | 1.60% | |
| | | | | |
| | | 1.66% | | | | 1.66% | | | | 1.67% | | | | 1.68% | | | | 1.67% | |
| | | 2.02% | | | | 2.26% | | | | 2.25% | | | | 2.07% | | | | 1.99% | |
| | | | | |
| | | 1.86% | | | | 2.10% | | | | 2.14% | | | | 1.99% | | | | 1.92% | |
| | | | 27% | | | | 25% | | | | 32% | | | | 26% | | | | 35% | |
107
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return3 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
108
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 12.40 | | | $ | 11.87 | | | $ | 12.17 | | | $ | 12.50 | | | $ | 12.16 | |
| | | | | |
| | | 0.37 | | | | 0.39 | | | | 0.39 | | | | 0.37 | | | | 0.37 | |
| | | (0.02 | ) | | | 0.53 | | | | (0.30 | ) | | | (0.33 | ) | | | 0.34 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.35 | | | | 0.92 | | | | 0.09 | | | | 0.04 | | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.37 | ) | | | (0.39 | ) | | | (0.39 | ) | | | (0.37 | ) | | | (0.37 | ) |
| | | — | | | | — | | | | — | | | | — | 2 | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.37 | ) | | | (0.39 | ) | | | (0.39 | ) | | | (0.37 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 12.38 | | | $ | 12.40 | | | $ | 11.87 | | | $ | 12.17 | | | $ | 12.50 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2.92% | | | | 7.92% | | | | 0.75% | | | | 0.44% | | | | 5.92% | |
| | | | | |
| | $ | 453,727 | | | $ | 399,830 | | | $ | 377,445 | | | $ | 369,443 | | | $ | 479,172 | |
| | | 0.50% | | | | 0.50% | | | | 0.56% | | | | 0.60% | | | | 0.60% | |
| | | | | |
| | | 0.66% | | | | 0.66% | | | | 0.67% | | | | 0.68% | | | | 0.67% | |
| | | 3.02% | | | | 3.26% | | | | 3.25% | | | | 3.07% | | | | 2.99% | |
| | | | | |
| | | 2.86% | | | | 3.10% | | | | 3.14% | | | | 2.99% | | | | 2.92% | |
| | | | 27% | | | | 25% | | | | 32% | | | | 26% | | | | 35% | |
109
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
110
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | $ | 11.48 | | | $ | 11.00 | | | $ | 11.05 | | | $ | 11.42 | | | $ | 10.75 | |
| | | | | |
| | | 0.44 | | | | 0.46 | | | | 0.46 | | | | 0.44 | | | | 0.41 | |
| | | (0.33 | ) | | | 0.48 | | | | (0.05 | ) | | | (0.37 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.11 | | | | 0.94 | | | | 0.41 | | | | 0.07 | | | | 1.08 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.44 | ) | | | (0.46 | ) | | | (0.46 | ) | | | (0.44 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.44 | ) | | | (0.46 | ) | | | (0.46 | ) | | | (0.44 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 11.15 | | | $ | 11.48 | | | $ | 11.00 | | | $ | 11.05 | | | $ | 11.42 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 1.06% | | | | 8.81% | | | | 3.80% | | | | 0.72% | | | | 10.25% | |
| | | | | |
| | $ | 182,214 | | | $ | 208,549 | | | $ | 200,493 | | | $ | 190,211 | | | $ | 250,810 | |
| | | 0.85% | | | | 0.85% | | | | 0.85% | | | | 0.85% | | | | 0.85% | |
| | | | | |
| | | 0.91% | | | | 0.90% | | | | 0.91% | | | | 0.94% | | | | 0.94% | |
| | | 3.99% | | | | 4.22% | | | | 4.19% | | | | 4.02% | | | | 3.73% | |
| | | | | |
| | | 3.93% | | | | 4.17% | | | | 4.13% | | | | 3.93% | | | | 3.64% | |
| | | | 44% | | | | 33% | | | | 19% | | | | 27% | | | | 13% | |
111
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. |
Performance would have been lower had the waiver not been in effect.
See accompanying notes, which are an integral part of the financial statements.
112
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | | | | |
| | $ | 11.52 | | | $ | 11.04 | | | $ | 11.09 | | | $ | 11.47 | | | $ | 10.80 | |
| | | | | |
| | | 0.36 | | | | 0.38 | | | | 0.38 | | | | 0.36 | | | | 0.33 | |
| | | (0.32 | ) | | | 0.48 | | | | (0.05 | ) | | | (0.38 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.04 | | | | 0.86 | | | | 0.33 | | | | (0.02 | ) | | | 1.00 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.36 | ) | | | (0.38 | ) | | | (0.38 | ) | | | (0.36 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.36 | ) | | | (0.38 | ) | | | (0.38 | ) | | | (0.36 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 11.20 | | | $ | 11.52 | | | $ | 11.04 | | | $ | 11.09 | | | $ | 11.47 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 0.41% | | | | 7.98% | | | | 3.03% | | | | (0.11% | ) | | | 9.41% | |
| | | | | |
| | $ | 68,993 | | | $ | 91,184 | | | $ | 92,155 | | | $ | 97,974 | | | $ | 113,905 | |
| | | 1.60% | | | | 1.60% | | | | 1.60% | | | | 1.60% | | | | 1.60% | |
| | | | | |
| | | 1.66% | | | | 1.65% | | | | 1.66% | | | | 1.69% | | | | 1.69% | |
| | | 3.24% | | | | 3.47% | | | | 3.44% | | | | 3.27% | | | | 2.98% | |
| | | | | |
| | | 3.18% | | | | 3.42% | | | | 3.38% | | | | 3.18% | | | | 2.89% | |
| | | | 44% | | | | 33% | | | | 19% | | | | 27% | | | | 13% | |
113
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 income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
|
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
|
Net asset value, end of period |
|
Total return2 |
|
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
| 1 | The average shares outstanding have been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
114
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/18 | | | 8/31/17 | | | 8/31/16 | |
| |
| | | | | |
| | $ | 11.58 | | | $ | 11.10 | | | $ | 11.15 | | | $ | 11.53 | | | $ | 10.85 | |
| | | | | |
| | | 0.47 | | | | 0.49 | | | | 0.49 | | | | 0.47 | | | | 0.45 | |
| | | (0.32 | ) | | | 0.48 | | | | (0.05 | ) | | | (0.38 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 0.15 | | | | 0.97 | | | | 0.44 | | | | 0.09 | | | | 1.12 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (0.47 | ) | | | (0.49 | ) | | | (0.49 | ) | | | (0.47 | ) | | | (0.44 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | (0.47 | ) | | | (0.49 | ) | | | (0.49 | ) | | | (0.47 | ) | | | (0.44 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | $ | 11.26 | | | $ | 11.58 | | | $ | 11.10 | | | $ | 11.15 | | | $ | 11.53 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 1.44% | | | | 9.03% | | | | 4.07% | | | | 0.92% | | | | 10.57% | |
| | | | | |
| | $ | 1,095,548 | | | $ | 1,141,973 | | | $ | 1,017,167 | | | $ | 932,716 | | | $ | 905,436 | |
| | | 0.60% | | | | 0.60% | | | | 0.60% | | | | 0.60% | | | | 0.60% | |
| | | | | |
| | | 0.66% | | | | 0.65% | | | | 0.66% | | | | 0.69% | | | | 0.69% | |
| | | 4.24% | | | | 4.47% | | | | 4.44% | | | | 4.27% | | | | 3.98% | |
| | | | | |
| | | 4.18% | | | | 4.42% | | | | 4.38% | | | | 4.18% | | | | 3.89% | |
| | | | 44% | | | | 33% | | | | 19% | | | | 27% | | | | 13% | |
115
| | |
| Notes to financial statements | | |
| Delaware Funds® by Macquarie national tax-free funds | | August 31, 2020 |
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 each referred to as a Trust, or 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 a Fund, or together, the Funds). Each Trust is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, 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 for Delaware Tax-Free USA Fund and $250,000 or more for Delaware National High-Yield Municipal Bond Fund will incur a contingent deferred sales charge (CDSC) instead of a front-end sales charge of 1.00%, if redeemed during the first year and 0.50% during the second year and 0.75% for Class A share purchases of $1,000,000 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%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.
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
116
to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the year ended August 31, 2020 and for all open tax years (years ended August 31, 2017–August 31, 2019), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the year ended August 31, 2020, the Funds did not incur any interest or tax penalties.
Class Accounting — Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
117
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
1. Significant Accounting Policies (continued)
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the year ended August 31, 2020, each Fund earned the following amounts under this arrangement:
| | | | | |
Fund | | Custody Credits |
| |
Delaware Tax-Free USA Fund | | | | $2,869 | |
Delaware Tax-Free USA Intermediate Fund | | | | 3,975 | |
Delaware National High-Yield Municipal Bond Fund | | | | 433 | |
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the year ended August 31, 2020, each Fund earned the following amounts under this arrangement:
| | | | | |
Fund | | Earnings Credits |
| |
Delaware Tax-Free USA Fund | | | | $391 | |
Delaware Tax-Free USA Intermediate Fund | | | | 137 | |
Delaware National High-Yield Municipal Bond Fund | | | | 396 | |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
| | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
USA Fund | | Delaware Tax-Free USA
Intermediate Fund | | Delaware National
High-Yield
Municipal Bond Fund |
| | | |
On the first $500 million | | | | 0.5500 | % | | | | 0.5000 | % | | | | 0.5500 | % |
On the next $500 million | | | | 0.5000 | % | | | | 0.4750 | % | | | | 0.5000 | % |
On the next $1.5 billion | | | | 0.4500 | % | | | | 0.4500 | % | | | | 0.4500 | % |
In the excess of $2.5 billion | | | | 0.4250 | % | | | | 0.4250 | % | | | | 0.4250 | % |
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 distribution and service (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) in order to prevent total annual fund operating expenses from exceeding the following percentage of each Fund’s average daily net assets
118
from September 1, 2019 through August 31, 2020.* These expense waivers and reimbursements may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
| | | | | |
Fund | | Operating expense
limitation as
a percentage
of average
daily net assets |
| |
Delaware Tax-Free USA Fund | | | | 0.56 | % |
Delaware Tax-Free USA Intermediate Fund | | | | 0.50 | % |
Delaware National High-Yield Municipal Bond Fund | | | | 0.60 | % |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the year ended August 31, 2020, each Fund was charged for these services as follows:
| | | | |
Fund | | Fees | |
| |
Delaware Tax-Free USA Fund | | | $24,798 | |
Delaware Tax-Free USA Intermediate Fund | | | 22,836 | |
Delaware National High-Yield Municipal Bond Fund | | | 51,751 | |
DIFSC is also the transfer agent and dividend disbursing agent of each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; and 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the year ended August 31, 2020, each Fund was charged for these services as follows:
| | | | |
Fund | | Fees | |
| |
Delaware Tax-Free USA Fund | | $ | 55,899 | |
Delaware Tax-Free USA Intermediate Fund | | | 50,685 | |
Delaware National High-Yield Municipal Bond Fund | | | 128,254 | |
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
119
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
agency fees are paid by each Fund and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, 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 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 September 1, 2019 through August 31, 2020.* Each Fund pays 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay 12b-1 fees.
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the year ended August 31, 2020, each Fund was charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
| | | | |
Fund | | Fees | |
| |
Delaware Tax-Free USA Fund | | | $17,756 | |
Delaware Tax-Free USA Intermediate Fund | | | 16,240 | |
Delaware National High-Yield Municipal Bond Fund | | | 40,764 | |
For the year ended August 31, 2020, DDLP earned commissions on sales of Class A shares for each Fund as follows:
| | | | | |
Fund | | Commissions |
| |
Delaware Tax-Free USA Fund | | | | $25,177 | |
Delaware Tax-Free USA Intermediate Fund | | | | 3,190 | |
Delaware National High-Yield Municipal Bond Fund | | | | 32,981 | |
120
For the year ended August 31, 2020, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
| | | | | | | | |
Fund | | Class A | | | Class C | |
| | |
Delaware Tax-Free USA Fund | | $ | 1,302 | | | $ | 371 | |
Delaware Tax-Free USA Intermediate Fund | | | 2,184 | | | | 551 | |
Delaware National High-Yield Municipal Bond Fund | | | 100,809 | | | | 5,339 | |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the year ended August 31, 2020, were executed by each Fund pursuant to procedures adopted by the Boards designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review such transactions for compliance with the procedures adopted by the Boards. Pursuant to these procedures, for the year ended August 31, 2020, the Funds engaged in the following Rule 17a-7 securities purchases and securities sales, which resulted in net realized gains (losses) as follows:
| | | | | | | | | | | | |
| | | Purchases | | | Sales | | | Net realized gain (loss) |
| | | |
Delaware Tax-Free USA Fund | | $ | 69,506,902 | | | $ | 74,062,805 | | | | $(3,800,635 | ) |
Delaware Tax-Free USA Intermediate Fund | | | 39,617,341 | | | | 32,391,009 | | | | (116,710 | ) |
Delaware National High-Yield Municipal Bond Fund | | | 32,130,607 | | | | 50,646,418 | | | | (1,380,159 | ) |
*The aggregate contractual waiver period covering this report is from December 28, 2018 through December 28, 2020.
3. Investments
For the year ended August 31, 2020, each Fund made purchases and sales of investment securities other than short-term investments as follows:
| | | | | | | | |
Fund | | Purchases | | | Sales | |
| | |
Delaware Tax-Free USA Fund | | | $466,677,424 | | | | $471,517,538 | |
Delaware Tax-Free USA Intermediate Fund | | | 167,542,910 | | | | 146,740,097 | |
Delaware National High-Yield Municipal Bond Fund | | | 610,929,948 | | | | 691,251,377 | |
121
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
3. Investments (continued)
The tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be the final tax cost basis adjustments, but approximates the tax basis unrealized gains and losses that may be realized and distributed to shareholders. At August 31, 2020, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes for each Fund were as follows:
| | | | | | | | | | | | | | | | |
Fund | | Cost of
investments | | | Aggregate
unrealized
appreciation
of investments | | | Aggregate
unrealized
depreciation
of investments | | | Net unrealized
appreciation
of investments | |
| | | | |
Delaware Tax-Free USA Fund | | $ | 577,113,272 | | | $ | 49,193,246 | | | $ | (6,832,527 | ) | | | $42,360,719 | |
Delaware Tax-Free USA Intermediate Fund | | | 527,828,126 | | | | 40,800,365 | | | | (1,836,741 | ) | | | 38,963,624 | |
Delaware National High-Yield Municipal Bond Fund | | | 1,278,997,068 | | | | 97,313,177 | | | | (44,431,896 | ) | | | 52,881,281 | |
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
| | |
| Level 1 – | | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
| |
| Level 2 – | | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) |
122
| | |
| Level 3 – | | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of August 31, 2020:
| | | | | |
| | | Delaware Tax-Free USA Fund |
| | | Level 2 |
Securities | | | | | |
Assets: | | | | | |
Municipal Bonds | | | | $614,138,991 | |
Short-Term Investments | | | | 5,335,000 | |
| | | | | |
Total Value of Securities | | | | $619,473,991 | |
| | | | | |
| | | | | |
| | | Delaware Tax-Free USA Intermediate Fund |
| | | Level 2 |
Securities | | | | | |
Assets: | | | | | |
Municipal Bonds | | | $ | 553,541,750 | |
Short-Term Investments | | | | 13,250,000 | |
| | | | | |
Total Value of Securities | | | | $566,791,750 | |
| | | | | |
| | | | | | | | | | | | | | | |
| | | Delaware National High-Yield Municipal Bond Fund |
| | | Level 2 | | Level 3 | | Total |
Securities | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | |
Municipal Bonds | | | $ | 1,312,382,527 | | | | $ | 95,822 | | | | $ | 1,312,478,349 | |
Short-Term Investments | | | | 19,400,000 | | | | | — | | | | | 19,400,000 | |
| | | | | | | | | | | | | | | |
Total Value of Securities | | | $ | 1,331,782,527 | | | | $ | 95,822 | | | | $ | 1,331,878,349 | |
| | | | | | | | | | | | | | | |
A reconciliation of Level 3 investments is presented when a Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to that Fund’s net assets. Management has determined not to provide a reconciliation of Level 3 investments as the Level 3 investments were not considered significant to the Fund’s net assets at the beginning, interim, or end of the year. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments were not considered significant to the Fund’s net assets at the end of the year.
123
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Additionally, distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended August 31, 2020 and 2019 was as follows:
| | | | | | | | | | | | | | | | |
| | | Tax-exempt
income | | | Ordinary
income | | | Long-term
capital
gains | | | Total | |
Year ended August 31, 2020: | | | | | | | | | | | | | | | | |
| | | | |
Delaware Tax-Free USA Fund | | $ | 19,686,226 | | | $ | 676,158 | | | $ | 1,263,782 | | | $ | 21,626,166 | |
Delaware Tax-Free USA Intermediate Fund | | | 16,218,407 | | | | — | | | | — | | | | 16,218,407 | |
Delaware National High-Yield Municipal Bond Fund | | | 56,742,285 | | | | 249,820 | | | | — | | | | 56,992,105 | |
Year ended August 31, 2019: | | | | | | | | | | | | | | | | |
| | | | |
Delaware Tax-Free USA Fund | | | 19,673,037 | | | | 81,501 | | | | 145,750 | | | | 19,900,288 | |
Delaware Tax-Free USA Intermediate Fund | | | 16,667,720 | | | | — | | | | — | | | | 16,667,720 | |
Delaware National High-Yield Municipal Bond Fund | | | 56,547,428 | | | | 21,340 | | | | — | | | | 56,568,768 | |
124
5. Components of Net Assets on a Tax Basis
As of August 31, 2020, the components of net assets on a tax basis were as follows:
| | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
USA Fund | | Delaware Tax-Free USA
Intermediate Fund | | Delaware National
High-Yield
Municipal Bond Fund |
| | | |
Shares of beneficial interest | | | $ | 579,151,078 | | | | $ | 534,506,859 | | | | $ | 1,291,586,038 | |
Undistributed tax-exempt income | | | | 373,189 | | | | | 328,668 | | | | | 1,126,049 | |
Undistributed long-term capital gains | | | | 4,371,985 | | | | | — | | | | | 2,269,417 | |
Qualified late year loss deferrals | | | | (568,060 | ) | | | | — | | | | | — | |
Distributions payable | | | | (438,663 | ) | | | | (361,779 | ) | | | | (1,107,736 | ) |
Capital loss carryforwards | | | | — | | | | | (1,711,229 | ) | | | | — | |
Unrealized appreciation of investments | | | | 42,360,719 | | | | | 38,963,624 | | | | | 52,881,281 | |
| | | | | | | | | | | | | | | |
Net assets | | | $ | 625,250,248 | | | | $ | 571,726,143 | | | | $ | 1,346,755,049 | |
| | | | | | | | | | | | | | | |
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales and tax treatment of market discount and premium on debt instruments, if applicable.
Qualified late year ordinary and capital losses (including currency and specified gain (loss) items) represent losses realized from January 1, 2020 through August 31, 2020 and November 1, 2019 through August 31, 2020, respectively, that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. At August 31, 2020, the Funds utilized capital loss carryforwards as follows:
| | | | |
Delaware Tax-Free USA Intermediate Fund | | $ | 126,778 | |
Delaware National High-Yield Municipal Bond Fund | | | 13,029,258 | |
At August 31, 2020, capital loss carryforwards available to offset future realized capital gains, are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Loss carryforward character | | | | |
| | | | | |
| | | Short-term | | | | Long-term | | | | Total |
Delaware Tax-Free USA Intermediate Fund | | | $ | 1,711,229 | | | | | | | | | | $— | | | | | | | | | $ | 1,711,229 | |
At August 31, 2020, there were no capital loss carryforwards for Delaware Tax-Free USA Fund.
125
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
6. Capital Shares
Transactions in capital shares were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware Tax-Free
USA Fund | | | Delaware Tax-Free USA
Intermediate Fund | | | Delaware National High-Yield Municipal Bond Fund | |
| | | Year ended | | | Year ended | | | Year ended | |
| | | | | | |
| | | 8/31/20 | | | 8/31/19 | | | 8/31/20 | | | 8/31/19 | | | 8/31/20 | | | 8/31/19 | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 8,128,109 | | | | 9,633,567 | | | | 2,507,418 | | | | 2,346,565 | | | | 5,760,481 | | | | 4,939,498 | |
Class C | | | 209,130 | | | | 235,464 | | | | 148,655 | | | | 294,667 | | | | 909,664 | | | | 1,334,649 | |
Institutional Class | | | 5,517,306 | | | | 8,058,705 | | | | 11,945,089 | | | | 13,507,386 | | | | 30,588,566 | | | | 34,265,773 | |
| | | |
Shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | |
Class A | | | 1,237,423 | | | | 1,282,034 | | | | 243,247 | | | | 305,278 | | | | 640,413 | | | | 675,346 | |
Class C | | | 28,406 | | | | 35,429 | | | | 27,722 | | | | 43,148 | | | | 218,235 | | | | 250,585 | |
Institutional Class | | | 406,363 | | | | 232,343 | | | | 844,472 | | | | 801,340 | | | | 3,406,052 | | | | 3,379,605 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 15,526,737 | | | | 19,477,542 | | | | 15,716,603 | | | | 17,298,384 | | | | 41,523,411 | | | | 44,845,456 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (8,760,862 | ) | | | (13,496,639 | ) | | | (4,166,754 | ) | | | (4,200,242 | ) | | | (8,235,396 | ) | | | (5,676,550 | ) |
Class C | | | (677,015 | ) | | | (572,900 | ) | | | (1,072,043 | ) | | | (856,325 | ) | | | (2,879,671 | ) | | | (2,018,698 | ) |
Institutional Class | | | (5,767,214 | ) | | | (3,877,118 | ) | | | (8,385,796 | ) | | | (13,850,854 | ) | | | (35,257,417 | ) | | | (30,706,607 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (15,205,091 | ) | | | (17,946,657 | ) | | | (13,624,593 | ) | | | (18,907,421 | ) | | | (46,372,484 | ) | | | (38,401,855 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net increase (decrease) | | | 321,646 | | | | 1,530,885 | | | | 2,092,010 | | | | (1,609,037 | ) | | | (4,849,073 | ) | | | 6,443,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables above and on the “Statements of changes in net assets.” For the years ended August 31, 2020 and 2019, each Fund had the following exchange transactions:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exchange Redemptions | | | Exchange Subscriptions | | | | |
| | | | | | |
| | | Class A
Shares | | | Class C
Shares | | | Institutional
Class
Shares | | | Class A
Shares | | | Institutional
Class
Shares | | | Value | |
Delaware Tax-Free USA Fund | | | | | | | | | | | | | | | | | | | | | |
8/31/20 | | | 118,464 | | | | 60,517 | | | | — | | | | 60,554 | | | | 117,593 | | | $ | 2,113,033 | |
8/31/19 | | | 122,933 | | | | 9,379 | | | | — | | | | 9,402 | | | | 122,076 | | | | 1,496,654 | |
Delaware Tax-Free USA Intermediate Fund | | | | | | | | | | | | | |
8/31/20 | | | 119,341 | | | | 17,213 | | | | — | | | | 17,222 | | | | 118,367 | | | | 1,660,124 | |
8/31/19 | | | 1,189,029 | | | | 4,719 | | | | 6,641 | | | | 11,435 | | | | 1,178,174 | | | | 13,998,550 | |
Delaware National High-Yield Municipal Bond Fund | | | | | | | | | | | | | |
8/31/20 | | | 320,408 | | | | 19,256 | | | | — | | | | 15,368 | | | | 321,944 | | | | 3,710,189 | |
8/31/19 | | | 9,893 | | | | — | | | | — | | | | — | | | | 9,811 | | | | 108,773 | |
126
7. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $220,000,000 revolving line of credit intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. On November 4, 2019, the Participants entered into an amendment to the agreement for a $250,000,000 revolving line of credit (Agreement). The Agreement was increased to $275,000,000 on May 6, 2020. The Agreement is to be used as described below and operates in substantially the same manner as the original agreement. The line of credit available under the Agreement expires on November 2, 2020.
Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum of one-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on November 4, 2019.
The Funds had no amounts outstanding as of August 31, 2020, or at any time during the year then ended.
8. Securities Lending
Delaware Tax-Free USA Intermediate Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day, the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day, may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by each fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by
127
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
8. Securities Lending (continued)
government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; and asset-backed securities. The Fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Fund, the security lending agent, and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower.
The Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of the Fund’s cash collateral account may be less than the amount the Fund would be required to return to the borrowers of the securities and the Fund would be required to make up for this shortfall.
During the year ended August 31, 2020, Delaware Tax-Free USA Intermediate Fund had no securities out on loan. For the year ended August 31, 2020, Delaware Tax-Fee USA Fund and Delaware National High-Yield Municipal Bond Fund were not included in the Lending Agreement.
9. Geographic, Credit, and Market Risks
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
128
IBOR risk is the risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments that reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR. The use of alternative reference rate products may impact investment strategy performance. These risks may also apply with respect to changes in connection with other interbank offered rates (“IBORs”), such as the euro overnight index average (EONIA), which are also the subject of recent reform.
The Funds concentrate their investments in securities issued by municipalities, and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam, whose bonds are also free of federal and individual state income taxes.
The value of the Funds’ investments may be adversely affected by new legislation within the US 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 August 31, 2020, the percentage of each Fund’s net assets insured by bond issuers are listed on the next page 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 | | | | 0.16 | % | | | | — | | | | | 0.24 | % |
Assured Guaranty Municipal Corporation | | | | 0.23 | % | | | | 1.61 | % | | | | 0.21 | % |
AMBAC Assurance Corporation | | | | — | | | | | — | | | | | 0.07 | % |
National Public Finance Guarantee Corporation | | | | 0.06 | % | | | | — | | | | | — | |
| | | | | | | | | | | | | | | |
Total | | | | 0.45 | % | | | | 1.61 | % | | | | 0.52 | % |
| | | | | | | | | | | | | | | |
As of August 31, 2020, Delaware Tax-Free USA Fund invested in municipal bonds issued by the states of New York and Texas and territory of Puerto Rico, which constituted approximately 12.35%, 11.16%, and 11.98%, respectively, of the Fund’s net assets. As of August 31, 2020, Delaware Tax-Free USA Intermediate Fund invested in municipal bonds issued by the states of California and New York, which constituted approximately 14.04% and 16.23%, respectively, of the Fund’s net assets. As of August 31, 2020, Delaware National High-Yield Municipal Bond Fund invested in municipal bonds issued by the state of California and territory of Puerto Rico which constituted approximately 12.00% and 10.62%,
129
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
9. Geographic, Credit, and Market Risks (continued)
respectively, 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.
Each Fund 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.
130
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 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 each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities held by each Fund have been identified on the “Schedules of investments.”
10. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
11. Recent Accounting Pronouncements
In March 2017, FASB issued Accounting Standards Update (ASU), ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has implemented ASU 2017-08 and determined that the impact of this guidance to each Fund’s net assets at the end of the period is not material.
In August 2018, FASB issued ASU 2018-13, which changes certain fair value measurement disclosure requirements. ASU 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At this time, Management is evaluating the implications of these changes on the financial statements.
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. As of the financial reporting period, Management is evaluating the impact of applying this ASU.
131
Notes to financial statements
Delaware Funds® by Macquarie national tax-free funds
12. Subsequent Events
On August 12, 2020, the Board approved a proposal to reorganize the following acquired funds with and into the applicable acquiring funds as indicated below (each, a “Reorganization” and together, the “Reorganizations”):
| | |
Acquired Fund | | Acquiring Fund |
Delaware Tax-Exempt Income Fund, a series of the Delaware Group Limited-Term Government Funds | | Delaware Tax-Free USA Intermediate Fund, a series of the Trust |
| |
Delaware Tax-Exempt Opportunities Fund, a series of the Delaware Group Limited-Term Government Funds | | Delaware Tax-Free USA Fund, a series of the Trust |
The proposal is not subject to shareholder approval. The Board of Trustees of Delaware Group Limited-Term Government Funds has determined that each Reorganization is in the best interests of the applicable Acquired Fund and that the interests of each Acquired Fund’s existing shareholders will not be diluted as a result of the Reorganization.
Effective a week before the Reorganizations, each Acquired Fund will be closed to new investors. Each Acquired Fund will continue to accept purchases (including reinvested dividends and capital gains) from existing shareholders until a week before the Reorganizations. Contingent deferred sales charges will be waived on redemptions from each Acquired Fund through the date of each Reorganization. The Reorganizations are expected to take place in December 2020.
Management has determined that no other material events or transactions occurred subsequent to August 31, 2020, that would require recognition or disclosure in the Funds’ financial statements.
132
Report of independent
registered public accounting firm
To the Board of Trustees of Delaware Group® Tax-Free Fund and Voyageur Mutual Funds and Shareholders of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund (constituting Delaware Group® Tax Free Fund) and Delaware National High-Yield Municipal Bond Fund (one of the funds constituting Voyageur Mutual Funds) (hereafter collectively referred to as the “Funds”) as of August 31, 2020, the related statements of operations for the year ended August 31, 2020, the statements of changes in net assets for each of the two years in the period ended August 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of August 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2020 and each of the financial highlights for each of the five years in the period ended August 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2020 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
|
| /s/ PricewaterhouseCoopers LLP |
| Philadelphia, Pennsylvania |
| October 19, 2020 |
We have served as the auditor of one or more investment companies in Delaware Funds® by Macquarie since 2010.
133
Other Fund information (Unaudited)
Delaware Funds® by Macquarie national tax-free funds
Liquidity Risk Management Program
The Securities and Exchange Commission (the “SEC”) has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”), which requires all open-end funds (other than money market funds) to adopt and implement a program reasonably designed to assess and manage the fund’s “liquidity risk,” defined as the risk that the fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Funds have adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Board has designated the Division Director of the US Operational Risk Group of Macquarie Asset Management as the Program Administrator for each Fund in the Trust.
As required by the Liquidity Rule, the Program includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each of the Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of each Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting each Fund’s acquisition of Illiquid investments if, immediately after the acquisition, each Fund would hold more than 15% of its net assets in Illiquid assets. The Program also requires reporting to the SEC (on a non-public basis) and to the Board if each Fund’s holdings of Illiquid assets exceed 15% of each Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).
In assessing and managing each Fund’s liquidity risk, the Program Administrator considers, as relevant, a variety of factors, including: (1) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Funds during both normal and reasonably foreseeable stressed conditions; and (3) each Fund’s holdings of cash and cash equivalents and any borrowing arrangements. Classification of each Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or to sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value. Each Fund primarily holds assets that are classified as Highly Liquid, and therefore is not required to establish an HLIM.
At a meeting of the Board held on May 19-21, 2020, the Program Administrator provided a written report to the Board addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from December 1, 2018 through March 31, 2020. The report concluded that the Program is appropriately designed and effectively implemented and that it meets the requirements of Rule 22e-4 and each Fund’s liquidity needs. Each Fund’s HLIM is set at an appropriate level and the Funds complied with its HLIM at all times during the reporting period.
134
Tax Information
The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of the Funds. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
All disclosures are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring reporting, it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the fiscal year ended August 31, 2020, each Fund reports distributions paid during the year as follows:
| | | | | | | | |
| | | (A) Long-Term Capital Gains Distributions (Tax Basis) | | (B) Ordinary Income Distributions (Tax Basis) | | (C) Tax-Exempt Distributions (Tax Basis) | | Total Distributions (Tax Basis) |
Delaware Tax-Free USA Fund | | 5.84% | | 3.13% | | 91.03% | | 100.00% |
Delaware Tax-Free USA Intermediate Fund | | — | | — | | 100.00% | | 100.00% |
Delaware National High-Yield Municipal Bond Fund | | — | | 0.44% | | 99.56% | | 100.00% |
(A), (B) and (C) are based on a percentage of each Fund’s total distributions.
Board consideration of Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund at a meeting held on August 11-13, 2020
At a meeting held on August 11-13, 2020 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies, and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Management Agreement with Delaware Management Company (“DMC”), a series of Macquarie Investment Management Business Trust (“MIMBT”), included materials provided by DMC and its affiliates (collectively, “Macquarie Investment Management”) concerning, among other things, the nature, extent, and quality of services provided to the Funds; the costs of such services to the Funds;
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Other Fund information (Unaudited)
Delaware Funds® by Macquarie national tax-free funds
Board consideration of Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund at a meeting held on August 11-13, 2020 (continued)
economies of scale; and the investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, materials were provided to the Trustees in May 2020, including reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy, the structure of portfolio manager compensation, comparative client fee information, and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’s ability to invest fully in accordance with Fund policies.
In considering information relating to the approval of each Fund’s advisory agreement, the Independent Trustees received assistance and advice from and met separately with independent legal counsel to the Independent Trustees and also received assistance and advice from an experienced and knowledgeable independent fund consultant, JDL Consultants, LLC (“JDL”). Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.
Nature, extent, and quality of services. The Board considered the services provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Funds® by Macquarie (“Delaware Funds”); and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of DMC and the emphasis placed on research in the investment process. The Board recognized DMC’s receipt of certain favorable industry distinctions during the past several years. The Board gave favorable consideration to DMC’s efforts to control expenses while maintaining service levels committed to Fund matters. The Board also noted the benefits provided to Fund shareholders through (a) each shareholder’s ability to: (i) exchange an investment in one Delaware Fund for the same class of shares in another Delaware Fund without a sales charge, or (ii) reinvest Fund dividends into additional shares of the Fund or into additional shares of other Delaware Funds, and (b) the privilege to combine holdings in other Delaware Funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent, and quality of the overall services provided by DMC.
Investment performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board considered performance reports and discussions with portfolio managers at Investment Committee meetings throughout the year, the Board gave particular weight to the Broadridge reports furnished for the Annual Meeting. The Broadridge reports prepared for each Fund showed the investment
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performance of its Class A shares in comparison to a group of similar funds as selected by Broadridge (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past 1-, 3-, 5-, and 10-year periods, to the extent, applicable, ended January 31, 2020. The Board’s objective is that each Fund’s performance for the 1-, 3-, and 5-year periods be at or above the median of its Performance Universe.
Delaware Tax-Free USA Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional general & insured municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free USA Intermediate Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional intermediate municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1- and 3-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the 5- and 10-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Delaware National High-Yield Municipal Bond Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional high yield municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1- and 10-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the 3- and 5-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Comparative expenses. The Board considered expense data for the Delaware Funds. Management provided the Board with information on pricing levels and fee structures for each Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and total expense ratios of a group of similar funds as selected by Broadridge (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Broadridge total expenses, for comparative consistency, were shown by Broadridge for Class A shares and comparative total expenses including 12b-1 and non-12b-1 service fees. The Board’s objective is for each Fund’s total expense ratio to be competitive with those of the peer funds within its Expense Group.
Delaware Tax-Free USA Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was
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Other Fund information (Unaudited)
Delaware Funds® by Macquarie national tax-free funds
Board consideration of Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund at a meeting held on August 11-13, 2020 (continued)
satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Broadridge report.
Delaware Tax-Free USA Intermediate Fund – The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Broadridge report.
Delaware National High-Yield Municipal Bond Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2020 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting, fund accounting oversight, and custody services, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Management profitability. The Board considered the level of profits realized by DMC in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of DMC’s business in providing management and other services to each of the individual funds and the Delaware Funds as a whole. Specific attention was given to the methodology used by DMC in allocating costs for the purpose of determining profitability. Management stated that the level of profits of DMC, to a certain extent, reflects recent operational cost savings and efficiencies initiated by DMC. The Board considered DMC’s efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission initiatives. The Board also considered the extent to which DMC might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. As part of its work, the Board also reviewed a report prepared by JDL regarding MIMBT profitability as compared to certain peer fund complexes and the Independent Trustees met with JDL personnel to discuss DMC’s profitability in such context. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC.
Economies of scale. The Trustees considered whether economies of scale are realized by DMC as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed each Fund’s advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints, and which applies to most funds in the Delaware Funds complex. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would
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otherwise be the case in the absence of breakpoints, when the asset levels specified in the breakpoints are exceeded. The Board noted that, as of March 31, 2020, Delaware Tax-Free USA Fund’s assets and Delaware Tax-Free USA Intermediate Fund’s assets exceeded the first breakpoint level. The Board also noted that, as of March 31, 2020, Delaware National High-Yield Municipal Bond Fund’s assets exceeded the second breakpoint level. The Board believed that, given the extent to which economies of scale might be realized by DMC and its affiliates, the schedule of fees under the Investment Management Agreement provides a sharing of benefits with the Funds and their shareholders.
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Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.
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Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
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Interested Trustee | | | | | | | | | | |
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Shawn K. Lytle1 610 Market Street Philadelphia, PA 19106 February 1970 | | President, Chief Executive Officer, and Trustee | | President and Chief Executive Officer since August 2015 Trustee since September 2015 | | President – Macquarie Investment Management2 (June 2015–Present) Regional Head of Americas – UBS Global Asset Management (April 2010–May 2015) | | 93 | | Trustee — UBS Relationship Funds, SMA Relationship Trust, and UBS Funds (May 2010–April 2015) |
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Independent Trustees | | | | | | | | | | |
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Jerome D. Abernathy 610 Market Street Philadelphia, PA 19106 July 1959 | | Trustee | | Since January 2019 | | Managing Member, Stonebrook Capital Management, LLC (financial technology: macro factors and databases) (January 1993-Present) | | 93 | | None |
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Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
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Thomas L. Bennett 610 Market Street Philadelphia, PA 19106 October 1947 | | Chair and Trustee | | Trustee since March 2005 Chair since March 2015 | | Private Investor (March 2004–Present) | | 93 | | None |
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Ann D. Borowiec 610 Market Street Philadelphia, PA 19106 November 1958 | | Trustee | | Since March 2015 | | Chief Executive Officer, Private Wealth Management (2011–2013) and Market Manager, New Jersey Private Bank (2005–2011) – J.P. Morgan Chase & Co. | | 93 | | Director — Banco Santander International (October 2016–December 2019) Director — Santander Bank, N.A. (December 2016–December 2019) |
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Joseph W. Chow 610 Market Street Philadelphia, PA 19106 January 1953 | | Trustee | | Since January 2013 | | Private Investor (April 2011–Present) | | 93 | | Director and Audit Committee Member — Hercules Technology Growth Capital, Inc. (July 2004–July 2014) |
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Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
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Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
| | | | | |
John A. Fry 610 Market Street Philadelphia, PA 19106 May 1960 | | Trustee | | Since January 2001 | | President – Drexel University (August 2010–Present) President – Franklin & Marshall College (July 2002–June 2010) | | 93 | | Director; Compensation Committee and Governance Committee Member — Community Health Systems (May 2004–Present) Director — Drexel Morgan & Co. (2015–2019) Director and Audit Committee Member — vTv Therapeutics Inc. (2017–Present) Director and Audit Committee Member — FS Credit Real Estate Income Trust, Inc. (2018–Present) Director — Federal Reserve Bank of Philadelphia (January 2020–Present) |
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Lucinda S. Landreth 610 Market Street Philadelphia, PA 19106 June 1947 | | Trustee | | Since March 2005 | | Private Investor (2004–Present) | | 93 | | None |
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| | | | | | | | | | |
Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
| | | | | |
Frances A. Sevilla-Sacasa 610 Market Street Philadelphia, PA 19106 January 1956 | | Trustee | | Since September 2011 | | Private Investor (January 2017–Present) Chief Executive Officer — Banco Itaú International (April 2012–December 2016) Executive Advisor to Dean (August 2011–March 2012) and Interim Dean (January 2011–July 2011) — University of Miami School of Business Administration President — U.S. Trust, Bank of America Private Wealth Management (Private Banking) (July 2007-December 2008) | | 93 | | Trust Manager and Audit Committee Chair — Camden Property Trust (August 2011–Present) Director; Strategic Planning and Reserves Committee and Nominating and Governance Committee Member — Callon Petroleum Company (December 2019–Present) Director; Audit Committee Member — Carrizo Oil & Gas, Inc. (March 2018–December 2019) |
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Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
| | | | | | | | | | |
Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
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Thomas K. Whitford 610 Market Street Philadelphia, PA 19106 March 1956 | | Trustee | | Since January 2013 | | Vice Chairman (2010–April 2013) — PNC Financial Services Group | | 93 | | Director — HSBC North America Holdings Inc. (December 2013–Present) Director — HSBC USA Inc. (July 2014–Present) Director — HSBC Bank USA, National Association (July 2014–March 2017) Director — HSBC Finance Corporation (December 2013–April 2018) |
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Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
| | | | | |
Christianna Wood 610 Market Street Philadelphia, PA 19106 August 1959 | | Trustee | | Since January 2019 | | Chief Executive Officer and President — Gore Creek Capital, Ltd. (August 2009–Present) | | 93 | | Director; Finance Committee and Audit Committee Member — H&R Block Corporation (July 2008–Present) Director; Investments Committee, Capital and Finance Committee, and Audit Committee Member — Grange Insurance (2013–Present) Trustee; Chair of Nominating and Governance Committee and Audit Committee Member — The Merger Fund (2013–Present), The Merger Fund VL (2013–Present); WCM Alternatives: Event-Driven Fund (2013–Present), and WCM Alternatives: Credit Event Fund (December 2017–Present) Director; Chair of Governance Committee and Audit Committee Member — International Securities Exchange (2010–2016) |
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Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
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Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
| | | | | |
Janet L. Yeomans 610 Market Street Philadelphia, PA 19106 July 1948 | | Trustee | | Since April 1999 | | Vice President and Treasurer (January 2006–July 2012), Vice President — Mergers & Acquisitions (January 2003–January 2006), and Vice President and Treasurer (July 1995–January 2003) — 3M Company | | 93 | | Director; Personnel and Compensation Committee Chair; Member of Nominating, Investments, and Audit Committees for various periods throughout directorship — Okabena Company (2009–2017) |
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Officers | | | | | | | | |
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David F. Connor 610 Market Street Philadelphia, PA 19106 December 1963 | | Senior Vice President, General Counsel, and Secretary | | Senior Vice President, since May 2013; General Counsel since May 2015; Secretary since October 2005 | | David F. Connor has served in various capacities at different times at Macquarie Investment Management. | | 93 | | None3 |
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Daniel V. Geatens 610 Market Street Philadelphia, PA 19106 October 1972 | | Vice President and Treasurer | | Vice President and Treasurer since October 2007 | | Daniel V. Geatens has served in various capacities at different times at Macquarie Investment Management. | | 93 | | None3 |
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| | | | | | | | | | |
Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time Served | | Principal Occupation(s) During the Past Five Years | | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
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Richard Salus 610 Market Street Philadelphia, PA 19106 October 1963 | | Senior Vice President and Chief Financial Officer | | Senior Vice President and Chief Financial Officer since November 2006 | | Richard Salus has served in various capacities at different times at Macquarie Investment Management. | | 93 | | None |
1 Shawn K. Lytle is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.
2 Macquarie Investment Management is the marketing name for Macquarie Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent.
3 David F. Connor, Daniel V. Geatens, and Richard Salus serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant. Mr. Geatens also serves as the Chief Financial Officer and Treasurer for Macquarie Global Infrastructure Total Return Fund Inc., which has an affiliated investment manager.
The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 231-8002.
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About the organization
Board of trustees
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Shawn K. Lytle President and Chief Executive Officer Delaware Funds® by Macquarie Philadelphia, PA Jerome D. Abernathy Managing Member Stonebrook Capital Management, LLC Jersey City, NJ Thomas L. Bennett Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA Affiliated officers David F. Connor Senior Vice President, General Counsel, and Secretary Delaware Funds by Macquarie Philadelphia, PA | | Ann D. Borowiec Former Chief Executive Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY Joseph W. Chow Former Executive Vice President State Street Corporation Boston, MA John A. Fry President Drexel University Philadelphia, PA Daniel V. Geatens Vice President and Treasurer Delaware Funds by Macquarie Philadelphia, PA | | Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. New York, NY Frances A. Sevilla-Sacasa Former Chief Executive Officer Banco Itaú International Miami, FL Richard Salus Senior Vice President and Chief Financial Officer Delaware Funds by Macquarie Philadelphia, PA | | Thomas K. Whitford Former Vice Chairman PNC Financial Services Group Pittsburgh, PA Christianna Wood Chief Executive Officer and President Gore Creek Capital, Ltd. Golden, CO Janet L. Yeomans Former Vice President and Treasurer 3M Company St. Paul, MN |
This annual 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 Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT. Each Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent Form N-PORT are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
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Item 2. Code of Ethics
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Jerome D. Abernathy
John A. Fry
Thomas K. Whitford, Chair
Christianna Wood
Item 4. Principal Accountant Fees and Services
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $80,320 for the fiscal year ended August 31, 2020.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $81,840 for the fiscal year ended August 31, 2019.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2020.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2019.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2019. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2020.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2019.
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $5,607,000 and $9,955,000 for the registrant’s fiscal years ended August 31, 2020 and August 31, 2019, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
