UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-03850 |
Exact name of registrant as specified in charter: | Delaware Group® Tax-Free Fund |
Address of principal executive offices: | 610 Market Street |
Philadelphia, PA 19106 | |
Name and address of agent for service: | David F. Connor, Esq. |
610 Market Street | |
Philadelphia, PA 19106 | |
Registrant’s telephone number, including area code: | (800) 523-1918 |
Date of fiscal year end: | August 31 |
Date of reporting period: | August 31, 2021 |
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, 2021
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.
Unless otherwise noted, views expressed herein are current as of August 31, 2021, 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.
© 2021 Macquarie Management Holdings, Inc.
Portfolio management review | |
Delaware Funds by Macquarie® national tax-free funds | September 7, 2021 (Unaudited) |
Performance preview (for the year ended August 31, 2021) | |||||
Delaware Tax-Free USA Fund (Institutional Class shares) | 1-year return | +9.34 | % | ||
Delaware Tax-Free USA Fund (Class A shares) | 1-year return | +9.03 | % | ||
Bloomberg Municipal Bond Index (benchmark) | 1-year return | +3.40 | % | ||
Lipper General & Insured Municipal Debt Funds Average | 1-year return | +4.73 | % |
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. The performance of both Institutional Class shares and Class A shares reflects 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.
Delaware Tax-Free USA Intermediate Fund (Institutional Class shares) | 1-year return | +5.92 | % | ||
Delaware Tax-Free USA Intermediate Fund (Class A shares) | 1-year return | +5.79 | % | ||
Bloomberg 3-15 Year Blend Municipal Bond Index (benchmark) | 1-year return | +2.75 | % | ||
Lipper Intermediate Municipal Debt Funds Average | 1-year return | +3.55 | % |
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. The performance of both Institutional Class shares and Class A shares reflects 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.
Delaware National High-Yield Municipal Bond Fund | 1-year return | +12.32 | % | ||
(Institutional Class shares) | |||||
Delaware National High-Yield Municipal Bond Fund (Class A shares) | 1-year return | +12.12 | % | ||
Bloomberg Municipal Bond Index (benchmark) | 1-year return | +3.40 | % | ||
Lipper High Yield Municipal Debt Funds Average | 1-year return | +9.40 | % |
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. The performance of both Institutional Class shares and Class A shares reflects 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 Bond 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
During the fiscal year ended August 31, 2021, the US economy expanded at a rapid pace, as states and municipalities opened up their economies and ended or scaled back pandemic-related restrictions. A $1.9 trillion federal economic stimulus program – the American Rescue Plan Act, passed in March 2021 – and continued aggressive monetary policy further supported the economy’s recovery after a difficult 2020.
Investors’ optimism began to grow in late 2020, along with the introduction of vaccines for COVID-19, which helped lead to a dramatic decline in virus cases and hospitalization rates. Uncertainty returned in the final months of the fiscal year, however, as the Delta variant of COVID-19 aggressively spread and new concerns emerged about the future path of the economic recovery.
Against this backdrop, the US economy enjoyed robust growth throughout the fiscal year. In the third quarter of 2020, for example, US gross domestic product (GDP) – a measure of national economic output – expanded by an annualized 33.4%. This was the fastest such increase in the country’s history, following an equally unprecedented 31.4% decline in the prior three-month period. US GDP grew by 4.5% in the fourth quarter of 2020, followed by increases of 6.3% in the first quarter of 2021 and an estimated 6.6% in the second quarter of 2021.
Employment trends similarly reflected the favorable economic backdrop. After the US jobless rate peaked in April 2020 at 14.7% – the highest level seen since the Great Depression – the employment picture quickly improved as state and local economies reopened. At the beginning of the Funds’ fiscal year in September 2020, US unemployment stood at a still historically high 8.4%. A year later, the country’s jobless rate had fallen to 5.2%.
Early in the pandemic, the US Federal Reserve cut its benchmark short-term interest rate, the federal funds rate, to essentially zero, where the rate remained throughout the fiscal year ended August 31, 2021. As signs mounted that inflation was accelerating, the Fed suggested it would consider increasing interest rates as early as 2023, moving up its previous timeline by a year.
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 Municipal Bond Index, gained 3.40% for the fiscal year ended August 31, 2021.
Municipal bonds benefited from a favorable technical backdrop, with robust demand for tax-exempt bonds accompanied by relatively
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limited supply. As the pandemic progressed, investors’ appetite for municipal debt remained strong, reflecting increased confidence in issuers’ underlying credit quality and expectations for higher tax rates in the future.
In this environment, longer-maturity bonds generally outperformed their intermediate- and shorter-dated counterparts, while lower-rated bonds outpaced higher-quality issues. High yield municipal debt – bonds with credit ratings below BBB – enjoyed particularly strong results.
The following tables show municipal bond returns by maturity length and by credit quality for the fiscal year ended August 31, 2021.
Returns by maturity | |||
1 year | 0.62 | % | |
3 years | 1.17 | % | |
5 years | 1.70 | % | |
10 years | 3.10 | % | |
22+ years | 5.54 | % | |
Returns by credit rating | |||
AAA | 1.70 | % | |
AA | 2.50 | % | |
A | 4.72 | % | |
BBB | 8.52 | % |
Source: Bloomberg.
A consistent management approach
For all three Funds discussed in this report, we continued to follow the same management strategy we use regardless of the market environment. We emphasize a bottom-up investment approach, meaning we rely on our team’s thorough credit research to choose bonds on an issuer-by-issuer basis. We regularly seek tax-exempt bonds that offer the Funds’ shareholders what we view as an attractive trade-off between return opportunity and risk.
In following this strategy, we generally position the Funds with relatively less exposure to highly rated, lower yielding bonds. Instead, we prefer to overweight bonds with lower-investment-grade or below-investment-grade credit ratings backed by what we believe is solid underlying credit quality, due to these securities’ tendency to offer better income characteristics.
Reflecting this approach, we continued to prioritize bonds with lower-investment-grade credit ratings (A and BBB) in Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. We also maintained a portion of each Fund’s portfolio in high yield tax-exempt bonds (rated below BBB). We believe that by focusing on higher yielding securities of solid underlying credit quality, we have more opportunity to add value for the Funds’ shareholders.
As of August 31, 2021, roughly 30% of the net assets of Delaware Tax-Free USA Fund was invested in bonds with lower-investment-grade credit ratings, while about 37% of the net assets of Delaware Tax-Free USA Intermediate Fund was invested in these credit tiers. Both Funds also maintained sizable allocations to high yield municipal bonds. By prospectus, both Funds may hold up to 20% of their net assets in high yield debt.
Consistent with its mandate, Delaware National High-Yield Municipal Bond Fund maintained the largest high yield exposure of the three Funds. As of August 31, 2021, about 65% of the Fund’s portfolio was held in bonds with credit ratings below BBB, including nonrated bonds.
Consistently seeking value
At the start of the fiscal year, the US was only a few months into the coronavirus pandemic, and municipal bond valuations remained depressed in several sectors. This was especially true of market areas uniquely vulnerable to the spread of COVID-19, such as continuing care retirement communities and charter schools.
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Portfolio management review
Delaware Funds by Macquarie® national tax-free funds
We prioritized opportunities to buy suitable higher yielding bonds in these and other sectors that we believed would allow us to enhance the Funds’ income-generating capability while also potentially providing total return opportunity.
Especially in Delaware National High-Yield Municipal Bond Fund, and to a lesser extent in Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund, we bought higher yielding bonds early in the fiscal year at depressed valuations. These included select opportunities among senior living, charter school, and infrastructure bonds, among others. Over time, bonds in these sectors experienced narrowing credit spreads and provided lower yields, gradually making them less attractive areas for new investment, in our view.
To varying extents in each Fund, we also bought tax-exempt bonds affiliated with the US territory of Puerto Rico, where we continued to find value amid that commonwealth’s ongoing financial restructuring.
Over time, as credit spreads narrowed, we became especially selective with new investments, focusing on purchasing bonds that we believed offered the Funds’ shareholders a favorable risk-reward trade-off.
Individual performance effects
As we mentioned, longer-duration bonds – those with more sensitivity to interest rates – generally outperformed shorter-duration bonds during the fiscal year, and lower-rated bonds outpaced higher-quality bonds. Often, the Funds’ leading individual contributors and detractors reflected these performance trends.
In both Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, for example, the strongest-performing securities were Puerto Rico dedicated-tax bonds. (Bonds issued by Puerto Rico and other US territories are generally fully tax-exempt for US residents.) These bonds, with a credit rating below investment grade and a 2040 maturity date, returned more than 45% for the Funds, benefiting from Puerto Rico’s improved credit quality, investors’ optimism about its debt restructuring plan, and the bonds’ relatively low valuation to begin the fiscal year.
Both Funds similarly benefited from California zero-coupon Inland Empire tobacco-securitization bonds. Older tobacco bonds such as these continued to benefit from their relative scarcity, rising in price as many tobacco issuers have refinanced outstanding debt and replaced older bonds with newer, lower-coupon issues.
Wisconsin-issued bonds for the American Dream project in the New Jersey Meadowlands also outperformed for Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. Coming into the fiscal year, these bonds were depressed in value because of pandemic-related delays in the opening of this widely anticipated entertainment and retail destination. As economies reopened and financial prospects for this mall improved along with shoppers’ arrival, these nonrated bonds enjoyed a strong return for the Funds, regaining value lost earlier in the pandemic.
Bonds for the Brightline (formerly Virgin Trains) Florida private-rail project also contributed to Delaware Tax-Free USA Intermediate Fund. These securities gained more than 25% for the Fund over the fiscal year. As investors became more confident in Brightline’s credit prospects, the securities recovered in value. We continued to see solid long-term potential for this credit, as the issuer is scheduled to restart its South Florida rail service later in 2021 while working to expand service.
In contrast, several of the Funds’ individual detractors included bonds of lower-rated retirement communities whose pre-existing financial challenges worsened because of the
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pandemic. In Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, for example, nonrated bonds for Tapestry Senior Living in Moon Township, Pa., hampered returns. These securities shed significant value during the fiscal year, as the facility could not attract as many new residents as expected amid the spread of COVID-19.
Meanwhile, nonrated bonds for Tuscan Gardens, a Florida senior-living center, hurt the performance of both Delaware National High-Yield Municipal Bond Fund and Delaware Tax-Free USA Intermediate Fund, while bonds of The Buckingham, a Texas senior-living community, further weighed on the performance of Delaware National High-Yield Municipal Bond Fund.
Many other relative underperformers produced only slightly negative or even positive returns, however, as their relatively high credit quality or short durations limited their upside in a generally favorable market environment. In Delaware Tax-Free USA Fund, for example, AAA-rated, noncallable bonds of the University of Texas produced an incrementally negative return. In Delaware Tax-Free USA Intermediate Fund, the Fund’s position in AAA-rated general obligation bonds of Chesterfield County, Va., maturing in 2022, produced a slightly positive return that lagged the benchmark by several percentage points.
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Performance summaries | |
Delaware Tax-Free USA Fund | August 31, 2021 (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, 2021 | |||||||
1 year | 5 year | 10 year | Lifetime | |||||
Class A (Est. January 11, 1984) | ||||||||
Excluding sales charge | +9.03% | +4.48% | +5.05% | +6.45% | ||||
Including sales charge | +4.15% | +3.51% | +4.57% | +6.32% | ||||
Class C (Est. November 29, 1995) | ||||||||
Excluding sales charge | +8.22% | +3.69% | +4.26% | +3.97% | ||||
Including sales charge | +7.22% | +3.69% | +4.26% | +3.97% | ||||
Institutional Class (Est. December 31, 2008) | ||||||||
Excluding sales charge | +9.34% | +4.74% | +5.31% | +6.27% | ||||
Including sales charge | +9.34% | +4.74% | +5.31% | +6.27% | ||||
Bloomberg Municipal Bond Index | +3.40% | +3.30% | +4.05% | +4.95%* |
* | 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. |
1 | Returns 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 (CDSC) 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
6
sales charges, assumes either that CDSCs 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 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
2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend 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 from September 1, 2020 to August 31, 2021.* 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 27, 2019 through December 29, 2021. |
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Performance of a $10,000 investment1
Average annual total returns from August 31, 2011 through August 31, 2021
For period beginning August 31, 2011 through August 31, 2021 | Starting value | Ending value | |||||||
Delaware Tax-Free USA Fund — Institutional Class shares | $10,000 | $16,775 | |||||||
Delaware Tax-Free USA Fund — Class A shares | $9,550 | $15,627 | |||||||
Bloomberg Municipal Bond Index | $10,000 | $14,874 |
1 | The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2011, 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 Municipal Bond Index as of August 31, 2011. The Bloomberg Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Gross domestic product, mentioned on page 2, is a measure of all goods and services produced by a nation in a year.
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, 2021 (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, 2021 | |||||||
1 year | 5 year | 10 year | Lifetime | |||||
Class A (Est. January 7, 1993) | ||||||||
Excluding sales charge | +5.79% | +3.40% | +3.60% | +4.68% | ||||
Including sales charge | +2.85% | +2.82% | +3.31% | +4.58% | ||||
Class C (Est. November 29, 1995) | ||||||||
Excluding sales charge | +4.90% | +2.52% | +2.72% | +3.54% | ||||
Including sales charge | +3.90% | +2.52% | +2.72% | +3.54% | ||||
Institutional Class (Est. December 31, 2008) | ||||||||
Excluding sales charge | +5.92% | +3.55% | +3.75% | +4.56% | ||||
Including sales charge | +5.92% | +3.55% | +3.75% | +4.56% | ||||
Bloomberg 3–15 Year Blend Municipal | ||||||||
Bond Index | +2.75% | +3.05% | +3.57% | +4.33%* |
* | 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. |
1 | Returns 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 December 4, 2020 through December 29, 2021.* 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 (CDSC) 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 CDSCs 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 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 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
2 | The 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, 2020 to August 31, 2021.* 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) | 0.89% | 1.64% | 0.64% | |||
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 27, 2019 through December 29, 2021. |
13
Performance summaries
Delaware Tax-Free USA Intermediate Fund
Performance of a $10,000 investment1
Average annual total returns from August 31, 2011 through August 31, 2021
For period beginning August 31, 2011 through August 31, 2021 | Starting value | Ending value | |||||||
Delaware Tax-Free USA Intermediate Fund — Institutional | |||||||||
Class shares | $10,000 | $14,452 | |||||||
Bloomberg 3–15 Year Blend Municipal Bond Index | $10,000 | $14,195 | |||||||
Delaware Tax-Free USA Intermediate Fund — Class A shares | $9,725 | $13,850 |
1 | The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2011, 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 3–15 Year Blend Municipal Bond Index as of August 31, 2011. The Bloomberg 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.
Gross domestic product, mentioned on page 2, is a measure of all goods and services produced by a nation in a year.
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, 2021 (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, 2021 | |||||||
1 year | 5 year | 10 year | Lifetime | |||||
Class A (Est. September 22, 1986) | ||||||||
Excluding sales charge | +12.12% | +5.21% | +6.55% | +6.31% | ||||
Including sales charge | +7.03% | +4.24% | +6.07% | +6.17% | ||||
Class C (Est. May 26, 1997) | ||||||||
Excluding sales charge | +11.25% | +4.42% | +5.76% | +4.79% | ||||
Including sales charge | +10.25% | +4.42% | +5.76% | +4.79% | ||||
Institutional Class (Est. December 31, 2008) | ||||||||
Excluding sales charge | +12.32% | +5.46% | +6.82% | +8.67% | ||||
Including sales charge | +12.32% | +5.46% | +6.82% | +8.67% | ||||
Bloomberg Municipal Bond Index | +3.40% | +3.30% | +4.05% | +4.95%* |
* | 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. |
1 | Returns 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 (CDSC) 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 CDSCs 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
16
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 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
2 | The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding 0.60% of the Fund’s average daily net assets from September 1, 2020 to August 31, 2021.* 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) | 0.85% | 1.60% | 0.60% | |||
Type of waiver | Contractual | Contractual | Contractual |
* | The aggregate contractual waiver period covering this report is from December 27, 2019 through December 29, 2021. |
18
Performance of a $10,000 investment1
Average annual total returns from August 31, 2011 through August 31, 2021
For period beginning August 31, 2011 through August 31, 2021 | Starting value | Ending value | |||||||
Delaware National High-Yield Municipal Bond Fund — Institutional Class shares | $10,000 | $19,333 | |||||||
Delaware National High-Yield Municipal Bond Fund — Class A shares | $9,550 | $18,020 | |||||||
Bloomberg Municipal Bond Index | $10,000 | $14,874 |
1 | The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2011, 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 Municipal Bond Index as of August 31, 2011. The Bloomberg Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
Gross domestic product, mentioned on page 2, is a measure of all goods and services produced by a nation in a year.
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, 2021 to August 31, 2021 (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, 2021 to August 31, 2021.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Fund’s expenses shown in the table 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, 2021 to August 31, 2021 (Unaudited)
Delaware Tax-Free USA Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | |||||||||||||||
Account Value | Account Value | Annualized | Paid During Period | ||||||||||||||
3/1/21 | 8/31/21 | Expense Ratio | 3/1/21 to 8/31/21* | ||||||||||||||
Actual Fund return† | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,050.40 | 0.82% | $ | 4.24 | ||||||||||
Class C | 1,000.00 | 1,045.60 | 1.57% | 8.09 | |||||||||||||
Institutional Class | 1,000.00 | 1,051.40 | 0.57% | 2.95 | |||||||||||||
Hypothetical 5% return (5% return before expenses) | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.07 | 0.82% | $ | 4.18 | ||||||||||
Class C | 1,000.00 | 1,017.29 | 1.57% | 7.98 | |||||||||||||
Institutional Class | 1,000.00 | 1,022.33 | 0.57% | 2.91 |
Delaware Tax-Free USA Intermediate Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | |||||||||||||||
Account Value | Account Value | Annualized | Paid During Period | ||||||||||||||
3/1/21 | 8/31/21 | Expense Ratio | 3/1/21 to 8/31/21* | ||||||||||||||
Actual Fund return† | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,035.10 | 0.64% | $ | 3.28 | ||||||||||
Class C | 1,000.00 | 1,030.60 | 1.49% | 7.63 | |||||||||||||
Institutional Class | 1,000.00 | 1,035.60 | 0.49% | 2.51 | |||||||||||||
Hypothetical 5% return (5% return before expenses) | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.98 | 0.64% | $ | 3.26 | ||||||||||
Class C | 1,000.00 | 1,017.69 | 1.49% | 7.58 | |||||||||||||
Institutional Class | 1,000.00 | 1,022.74 | 0.49% | 2.50 |
22
Delaware National High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||||||||
3/1/21 | 8/31/21 | Expense Ratio | 3/1/21 to 8/31/21* | |||||||||||||||||
Actual Fund return† | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,062.90 | 0.85 | % | $ | 4.42 | ||||||||||||
Class C | 1,000.00 | 1,058.80 | 1.60 | % | 8.30 | |||||||||||||||
Institutional Class | 1,000.00 | 1,063.90 | 0.60 | % | 3.12 | |||||||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.92 | 0.85 | % | $ | 4.33 | ||||||||||||
Class C | 1,000.00 | 1,017.14 | 1.60 | % | 8.13 | |||||||||||||||
Institutional Class | 1,000.00 | 1,022.18 | 0.60 | % | 3.06 |
* | “Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
† | Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns. |
23
Security type / sector / state / territory allocations | |
Delaware Tax-Free USA Fund | As of August 31, 2021 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | ||||
Municipal Bonds* | 98.99 | % | |||
Corporate Revenue Bonds | 12.27 | % | |||
Education Revenue Bonds | 8.51 | % | |||
Electric Revenue Bonds | 3.53 | % | |||
Healthcare Revenue Bonds | 11.77 | % | |||
Housing Revenue Bonds | 0.06 | % | |||
Lease Revenue Bonds | 5.87 | % | |||
Local General Obligation Bonds | 5.21 | % | |||
Pre-Refunded/Escrowed to Maturity Bonds | 2.92 | % | |||
Resource Recovery Revenue Bond | 0.18 | % | |||
Special Tax Revenue Bonds | 15.45 | % | |||
State General Obligation Bonds | 15.04 | % | |||
Transportation Revenue Bonds | 15.95 | % | |||
Water & Sewer Revenue Bonds | 2.23 | % | |||
Short-Term Investments | 2.26 | % | |||
Total Value of Securities | 101.25 | % | |||
Liabilities Net of Receivables and Other Assets | (1.25 | %) | |||
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 | 2.17 | % | |||
Arizona | 5.41 | % | |||
California | 11.01 | % | |||
Colorado | 3.44 | % | |||
Connecticut | 0.85 | % | |||
District of Columbia | 0.80 | % | |||
Florida | 4.85 | % | |||
Georgia | 1.89 | % | |||
Guam | 0.21 | % | |||
Idaho | 0.09 | % | |||
Illinois | 8.44 | % | |||
Indiana | 0.61 | % | |||
Kansas | 0.29 | % | |||
Louisiana | 0.22 | % | |||
Maryland | 1.06 | % | |||
Massachusetts | 3.43 | % | |||
Michigan | 0.69 | % |
24
State / territory | Percentage of net assets | ||||
Minnesota | 0.60 | % | |||
Mississippi | 1.68 | % | |||
Missouri | 0.54 | % | |||
Nebraska | 0.58 | % | |||
New Jersey | 4.12 | % | |||
New York | 10.53 | % | |||
North Carolina | 3.72 | % | |||
Ohio | 3.00 | % | |||
Oklahoma | 1.19 | % | |||
Oregon | 0.02 | % | |||
Pennsylvania | 3.16 | % | |||
Puerto Rico | 14.47 | % | |||
Rhode Island | 0.12 | % | |||
South Carolina | 0.05 | % | |||
Tennessee | 0.50 | % | |||
Texas | 6.68 | % | |||
Utah | 0.83 | % | |||
Virginia | 1.39 | % | |||
Washington | 2.40 | % | |||
Wisconsin | 0.21 | % | |||
Total Value of Securities | 101.25 | % |
25
Security type / sector / state / territory allocations | |
Delaware Tax-Free USA Intermediate Fund | As of August 31, 2021 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | ||||
Municipal Bonds* | 102.76 | % | |||
Corporate Revenue Bonds | 12.03 | % | |||
Education Revenue Bonds | 6.27 | % | |||
Electric Revenue Bonds | 5.07 | % | |||
Healthcare Revenue Bonds | 8.91 | % | |||
Lease Revenue Bonds | 6.33 | % | |||
Local General Obligation Bonds | 4.67 | % | |||
Pre-Refunded/Escrowed to Maturity Bonds | 5.20 | % | |||
Special Tax Revenue Bonds | 18.94 | % | |||
State General Obligation Bonds | 16.58 | % | |||
Transportation Revenue Bonds | 16.54 | % | |||
Water & Sewer Revenue Bonds | 2.22 | % | |||
Short-Term Investments | 0.91 | % | |||
Total Value of Securities | 103.67 | % | |||
Liabilities Net of Receivables and Other Assets | (3.67 | %) | |||
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 | 0.69 | % | |||
Arizona | 8.33 | % | |||
California | 11.88 | % | |||
Colorado | 2.11 | % | |||
Connecticut | 0.64 | % | |||
District of Columbia | 1.00 | % | |||
Florida | 4.24 | % | |||
Georgia | 2.14 | % | |||
Guam | 0.09 | % | |||
Hawaii | 0.29 | % | |||
Idaho | 0.40 | % | |||
Illinois | 12.14 | % | |||
Iowa | 0.04 | % | |||
Kansas | 0.10 | % | |||
Kentucky | 0.46 | % | |||
Louisiana | 1.41 | % | |||
Maryland | 0.99 | % | |||
Massachusetts | 2.34 | % | |||
Michigan | 1.49 | % |
26
State / territory | Percentage of net assets | ||||
Minnesota | 0.22 | % | |||
Mississippi | 0.46 | % | |||
Missouri | 0.41 | % | |||
Montana | 0.04 | % | |||
Nebraska | 0.03 | % | |||
New Hampshire | 0.21 | % | |||
New Jersey | 5.37 | % | |||
New York | 18.48 | % | |||
North Carolina | 0.33 | % | |||
Ohio | 1.99 | % | |||
Oklahoma | 0.66 | % | |||
Oregon | 1.05 | % | |||
Pennsylvania | 5.61 | % | |||
Puerto Rico | 8.66 | % | |||
South Carolina | 0.71 | % | |||
Texas | 3.62 | % | |||
Utah | 1.72 | % | |||
Virginia | 2.27 | % | |||
Washington | 0.73 | % | |||
Wisconsin | 0.32 | % | |||
Total Value of Securities | 103.67 | % |
27
Security type / sector / state / territory allocations | |
Delaware National High-Yield Municipal Bond Fund | As of August 31, 2021 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | ||||
Municipal Bonds* | 99.67 | % | |||
Corporate Revenue Bonds | 22.03 | % | |||
Education Revenue Bonds | 16.73 | % | |||
Electric Revenue Bonds | 4.07 | % | |||
Healthcare Revenue Bonds | 19.51 | % | |||
Housing Revenue Bond | 0.05 | % | |||
Lease Revenue Bonds | 3.44 | % | |||
Local General Obligation Bonds | 1.71 | % | |||
Pre-Refunded/Escrowed to Maturity Bonds | 2.39 | % | |||
Resource Recovery Revenue Bonds | 0.76 | % | |||
Special Tax Revenue Bonds | 10.91 | % | |||
State General Obligation Bonds | 12.38 | % | |||
Transportation Revenue Bonds | 3.65 | % | |||
Water & Sewer Revenue Bonds | 2.04 | % | |||
Short-Term Investments | 0.19 | % | |||
Total Value of Securities | 99.86 | % | |||
Receivables and Other Assets Net of Liabilities | 0.14 | % | |||
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 | 2.78 | % | |||
Arizona | 6.84 | % | |||
California | 12.52 | % | |||
Colorado | 2.47 | % | |||
Delaware | 0.08 | % | |||
District of Columbia | 1.37 | % | |||
Florida | 4.65 | % | |||
Georgia | 1.40 | % | |||
Guam | 0.16 | % | |||
Hawaii | 0.18 | % | |||
Idaho | 0.72 | % | |||
Illinois | 6.33 | % | |||
Indiana | 0.74 | % | |||
Iowa | 0.25 | % | |||
Kansas | 0.27 | % | |||
Kentucky | 0.51 | % | |||
Louisiana | 1.26 | % |
28
State / territory | Percentage of net assets | ||||
Maryland | 0.44 | % | |||
Massachusetts | 1.49 | % | |||
Michigan | 0.95 | % | |||
Minnesota | 0.76 | % | |||
Mississippi | 0.06 | % | |||
Missouri | 1.26 | % | |||
Montana | 0.09 | % | |||
Nevada | 0.68 | % | |||
New Hampshire | 0.27 | % | |||
New Jersey | 3.32 | % | |||
New York | 5.37 | % | |||
North Carolina | 1.72 | % | |||
Ohio | 4.44 | % | |||
Oklahoma | 0.12 | % | |||
Oregon | 0.69 | % | |||
Pennsylvania | 3.78 | % | |||
Puerto Rico | 15.78 | % | |||
South Carolina | 0.64 | % | |||
Tennessee | 0.46 | % | |||
Texas | 6.29 | % | |||
Utah | 0.20 | % | |||
Virginia | 4.07 | % | |||
Washington | 0.97 | % | |||
West Virginia | 0.16 | % | |||
Wisconsin | 3.32 | % | |||
Total Value of Securities | 99.86 | % |
29
Schedules of investments | |
Delaware Tax-Free USA Fund | August 31, 2021 |
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds – 98.99% | |||||||
Corporate Revenue Bonds – 12.27% | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(Legacy Cares, Inc. Project) | |||||||
Series A 144A 7.75% 7/1/50 # | 8,380,000 | $ | 10,100,917 | ||||
Buckeye, Ohio Tobacco Settlement Financing Authority | |||||||
(Senior) | |||||||
Series A-2 3.00% 6/1/48 | 8,000,000 | 8,312,320 | |||||
Series A-2 4.00% 6/1/48 | 5,550,000 | 6,378,892 | |||||
California Pollution Control Financing Authority Revenue | |||||||
(Calplant I Project) | |||||||
144A 8.00% 7/1/39 (AMT) #, ‡ | 375,000 | 243,750 | |||||
Central Plains, Nebraska Energy Project | |||||||
(Project No. 3) | |||||||
Series A 5.00% 9/1/31 | 2,810,000 | 3,695,375 | |||||
Series A 5.00% 9/1/35 | 2,160,000 | 3,021,775 | |||||
Commonwealth of Pennsylvania Financing Authority | |||||||
(Tobacco Master Settlement Payment) | |||||||
5.00% 6/1/34 | 100,000 | 123,067 | |||||
Erie, New York Tobacco Asset Securitization | |||||||
(Capital Appreciation-Asset-Backed) | |||||||
Series A 144A 1.495% 6/1/60 #, ^ | 82,695,000 | 4,509,358 | |||||
Florida Development Finance Surface Transportation Facilities | |||||||
Revenue | |||||||
(Brightline Passenger Rail Project) | |||||||
Series B 144A 7.375% 1/1/49 (AMT) # | 9,270,000 | 10,192,550 | |||||
(Virgin Trains USA Passenger Rail Project) | |||||||
Series A 144A 6.50% 1/1/49 (AMT) #, ● | 3,345,000 | 3,463,681 | |||||
Hoover, Alabama Industrial Development Board | |||||||
(United States Steel Corporation Project) | |||||||
5.75% 10/1/49 (AMT) | 5,000,000 | 6,015,800 | |||||
Indiana Finance Authority Exempt Facility Revenue | |||||||
(Polyflow Indiana Project - Green Bond) | |||||||
144A 7.00% 3/1/39 (AMT) # | 3,030,000 | 2,938,070 | |||||
Inland, California Empire Tobacco Securitization | |||||||
(Capital Appreciation-Turbo-Asset-Backed) | |||||||
Series E 144A 0.944% 6/1/57 #, ^ | 151,190,000 | 10,416,991 | |||||
Series F 144A 1.395% 6/1/57 #, ^ | 99,010,000 | 5,851,491 | |||||
Jefferson County, Texas Industrial Development Revenue | |||||||
(TRP Crude Marketing LLC Project) | |||||||
144A 7.75% 4/1/39 # | 450,000 | 469,818 | |||||
Liberty New York Development Corporation Revenue | |||||||
(Goldman Sachs Headquarters) | |||||||
5.25% 10/1/35 | 175,000 | 251,610 |
30
�� | Principal | ||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Lower Alabama Gas District | |||||||
Series A 5.00% 9/1/34 | 4,500,000 | $ | 6,108,705 | ||||
Series A 5.00% 9/1/46 | 2,975,000 | 4,426,086 | |||||
Michigan Finance Authority Revenue | |||||||
Series B-1 5.00% 6/1/49 | 1,500,000 | 1,835,580 | |||||
Minneapolis, Minnesota | |||||||
Series A 6.25% 12/1/30 | 300,000 | 304,443 | |||||
Monroe County, Michigan Economic Development Revenue | |||||||
(The Detroit Edison Company Project) | |||||||
Series AA 6.95% 9/1/22 (NATL) | 500,000 | 533,300 | |||||
M-S-R Energy Authority, California Gas Revenue | |||||||
Series A 6.125% 11/1/29 | 1,870,000 | 2,370,449 | |||||
Series B 6.50% 11/1/39 | 5,250,000 | 8,630,423 | |||||
Series C 6.50% 11/1/39 | 2,500,000 | 4,109,725 | |||||
New York Transportation Development Corporation Special | |||||||
Facilities Revenue | |||||||
(Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D | |||||||
Redevelopment Project) | |||||||
5.00% 1/1/34 (AMT) | 3,000,000 | 3,637,860 | |||||
Public Authority for Colorado Energy Natural Gas Revenue | |||||||
6.50% 11/15/38 | 6,220,000 | 9,714,147 | |||||
Salt Verde, Arizona Financial Senior Gas Revenue | |||||||
5.00% 12/1/37 | 1,750,000 | 2,475,690 | |||||
Shoals, Indiana | |||||||
(National Gypsum Co. Project) | |||||||
7.25% 11/1/43 (AMT) | 2,065,000 | 2,236,560 | |||||
South Carolina Jobs - Economic Development Authority | |||||||
Educational Facilities Revenue | |||||||
(AC East LLC Project - Green Bonds) | |||||||
Series A 144A 7.00% 5/1/39 (AMT) # | 600,000 | 589,200 | |||||
Southern Ohio Port Authority | |||||||
(Purecycle Project) | |||||||
Series A 144A 7.00% 12/1/42 (AMT) # | 1,000,000 | 1,164,630 | |||||
Tobacco Securitization Authority of Southern California | |||||||
(Capital Appreciation-2nd Subordinate Lien) | |||||||
Series C 0.546% 6/1/46 ^ | 16,970,000 | 3,570,658 | |||||
(Capital Appreciation-3rd Subordinate Lien) | |||||||
Capital Appreciation Third Subordinate Series D 0.301% | |||||||
6/1/46 ^ | 2,795,000 | 497,398 | |||||
Valparaiso, Indiana | |||||||
(Pratt Paper, LLC Project) | |||||||
7.00% 1/1/44 (AMT) | 1,780,000 | 2,021,831 |
31
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Virginia Tobacco Settlement Financing | |||||||
(Capital Appreciation) | |||||||
Series C 2.298% 6/1/47 ^ | 24,215,000 | $ | 5,943,814 | ||||
Series D 2.493% 6/1/47 ^ | 29,060,000 | 6,617,543 | |||||
142,773,507 | |||||||
Education Revenue Bonds – 8.51% | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(GreatHearts Arizona Projects) | |||||||
Series A 2.25% 7/1/46 | 1,500,000 | 1,448,415 | |||||
Series A 2.375% 7/1/52 | 1,500,000 | 1,459,695 | |||||
Auburn University, Alabama General Fee Revenue | |||||||
Series A 5.00% 6/1/33 | 1,720,000 | 2,156,502 | |||||
Bibb County, Georgia Development Authority Revenue | |||||||
(Macon State College Student Housing Project) | |||||||
Series A 5.75% 7/1/40 (AGM) | 2,500,000 | 2,510,400 | |||||
California Educational Facilities Authority Revenue | |||||||
(Loma Linda University) | |||||||
Series A 5.00% 4/1/47 | 1,000,000 | 1,179,770 | |||||
(Stanford University) | |||||||
Series T-1 5.00% 3/15/39 | 8,000,000 | 11,630,560 | |||||
Series V-1 5.00% 5/1/49 | 8,275,000 | 12,916,034 | |||||
Series V-2 2.25% 4/1/51 | 2,125,000 | 2,102,071 | |||||
District of Columbia Revenue | |||||||
5.00% 6/1/50 | 1,000,000 | 1,162,650 | |||||
(KIPP DC Issue) | |||||||
4.00% 7/1/44 | 500,000 | 567,655 | |||||
4.00% 7/1/49 | 1,375,000 | 1,549,831 | |||||
Idaho Housing & Finance Association | |||||||
(Sage International School of Boise Project) | |||||||
Series A 4.00% 5/1/50 | 550,000 | 633,671 | |||||
Illinois Finance Authority Revenue | |||||||
(University of Illinois at Chicago Project) | |||||||
Series A 5.00% 2/15/47 | 1,860,000 | 2,147,947 | |||||
Series A 5.00% 2/15/50 | 540,000 | 622,620 | |||||
Massachusetts Development Finance Agency Revenue | |||||||
Series V 5.00% 7/1/55 | 3,000,000 | 4,818,690 | |||||
New Jersey Economic Development Authority | |||||||
(Provident Group - Montclair State University) | |||||||
5.00% 6/1/42 (AGM) | 1,250,000 | 1,496,275 |
32
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Northern Illinois University | |||||||
(Auxiliary Facilities System Revenue) | |||||||
4.00% 10/1/34 (BAM) | 500,000 | $ | 599,425 | ||||
4.00% 10/1/35 (BAM) | 500,000 | 598,205 | |||||
4.00% 10/1/36 (BAM) | 550,000 | 656,150 | |||||
4.00% 10/1/37 (BAM) | 550,000 | 654,000 | |||||
4.00% 10/1/38 (BAM) | 650,000 | 770,841 | |||||
4.00% 10/1/39 (BAM) | 425,000 | 502,601 | |||||
Rhode Island Health and Educational Building Revenue | |||||||
(University of Rhode Island) | |||||||
Series B 5.25% 9/15/29 (AGC) | 1,415,000 | 1,420,688 | |||||
Town of Davie, Florida | |||||||
(Nova Southeastern University Project) | |||||||
5.00% 4/1/38 | 3,000,000 | 3,642,750 | |||||
University of North Carolina at Chapel Hill | |||||||
Series B 5.00% 12/1/36 | 4,350,000 | 5,945,406 | |||||
Series B 5.00% 12/1/37 | 6,760,000 | 9,207,864 | |||||
Series B 5.00% 12/1/38 | 7,640,000 | 10,368,855 | |||||
University of Texas System Board of Regents | |||||||
Series B 5.00% 8/15/49 | 10,100,000 | 15,779,230 | |||||
Virginia College Building Authority Revenue | |||||||
(The Washington and Lee University Project) | |||||||
5.75% 1/1/34 | 300,000 | 446,337 | |||||
98,995,138 | |||||||
Electric Revenue Bonds – 3.53% | |||||||
Electric and Gas Systems Revenue San Antonio, Texas | |||||||
5.25% 2/1/24 | 2,500,000 | 2,805,300 | |||||
Long Island, New York Power Authority Electric System Revenue | |||||||
5.00% 9/1/47 | 1,605,000 | 1,947,812 | |||||
Series B 5.00% 9/1/41 | 3,000,000 | 3,591,570 | |||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series A 5.00% 7/1/42 ‡ | 4,800,000 | 4,704,000 | |||||
Series A 5.05% 7/1/42 ‡ | 130,000 | 127,400 | |||||
Series A 6.75% 7/1/36 ‡ | 2,270,000 | 2,284,187 | |||||
Series AAA 5.25% 7/1/25 ‡ | 75,000 | 73,781 | |||||
Series CCC 5.25% 7/1/27 ‡ | 2,625,000 | 2,582,344 | |||||
Series TT 5.00% 7/1/32 ‡ | 3,165,000 | 3,101,700 | |||||
Series WW 5.00% 7/1/28 ‡ | 1,205,000 | 1,180,900 | |||||
Series WW 5.25% 7/1/33 ‡ | 3,250,000 | 3,197,187 | |||||
Series WW 5.50% 7/1/38 ‡ | 2,170,000 | 2,140,163 | |||||
Series XX 4.75% 7/1/26 ‡ | 265,000 | 258,706 |
33
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Electric Revenue Bonds (continued) | |||||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series XX 5.25% 7/1/40 ‡ | 3,780,000 | $ | 3,718,575 | ||||
Series XX 5.75% 7/1/36 ‡ | 940,000 | 930,600 | |||||
Series ZZ 4.75% 7/1/27 ‡ | 210,000 | 205,013 | |||||
Series ZZ 5.25% 7/1/24 ‡ | 105,000 | 103,294 | |||||
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 | 7,553,940 | |||||
Utah Associated Municipal Power Systems Revenue | |||||||
(San Juan Project) | |||||||
5.50% 6/1/22 | 500,000 | 502,105 | |||||
41,008,577 | |||||||
Healthcare Revenue Bonds – 11.77% | |||||||
Alachua County, Florida Health Facilities Authority | |||||||
(Oak Hammock University) | |||||||
Series A 8.00% 10/1/42 | 1,000,000 | 1,074,220 | |||||
Allegheny County, Pennsylvania Hospital Development Authority | |||||||
Revenue | |||||||
(Allegheny Health Network Obligated Group Issue) | |||||||
Series A 4.00% 4/1/44 | 50,000 | 56,779 | |||||
Series A 5.00% 4/1/47 | 1,850,000 | 2,228,824 | |||||
Apple Valley Senior Living Revenue | |||||||
(Minnesota Senior Living LLC Project) | |||||||
Series B 5.00% 1/1/47 | 2,380,000 | 1,865,563 | |||||
Series D 7.25% 1/1/52 | 2,590,000 | 2,008,700 | |||||
Arizona Industrial Development Authority Revenue | |||||||
(Great Lakes Senior Living Communities LLC Project 2nd Tier) | |||||||
Series B 5.00% 1/1/49 | 400,000 | 395,624 | |||||
Series B 5.125% 1/1/54 | 470,000 | 470,268 | |||||
(Great Lakes Senior Living Communities LLC Project 4th Tier) | |||||||
144A 7.75% 1/1/54 # | 325,000 | 260,029 | |||||
(Great Lakes Senior Living Communities LLC Project) | |||||||
Series A 5.00% 1/1/54 | 1,070,000 | 1,126,550 | |||||
(Phoenix Children’s Hospital) | |||||||
Series A 4.00% 2/1/50 | 3,500,000 | 4,086,040 | |||||
California Health Facilities Financing Authority Revenue | |||||||
(Kaiser Permanente) | |||||||
Series A-2 5.00% 11/1/47 | 7,855,000 | 11,890,271 | |||||
(Sutter Health) | |||||||
Series A 5.00% 11/15/38 | 1,000,000 | 1,242,610 |
34
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
California Municipal Finance Authority Revenue | |||||||
(Community Medical Centers) | |||||||
Series A 5.00% 2/1/42 | 2,650,000 | $ | 3,173,534 | ||||
Chester County Industrial Development Authority, Pennsylvania | |||||||
(Longwood Gardens, Inc. Project) | |||||||
4.00% 12/1/46 | 1,500,000 | 1,784,130 | |||||
4.00% 12/1/51 | 3,000,000 | 3,555,030 | |||||
Colorado Health Facilities Authority Revenue | |||||||
(AdventHealth Obligated Group) | |||||||
Series A 3.00% 11/15/51 | 3,775,000 | 4,056,539 | |||||
Series A 4.00% 11/15/43 | 3,000,000 | 3,544,920 | |||||
(American Baptist) | |||||||
8.00% 8/1/43 | 2,170,000 | 2,321,748 | |||||
(CommonSpirit Health) | |||||||
Series A-2 4.00% 8/1/49 | 3,250,000 | 3,720,568 | |||||
Series A-2 5.00% 8/1/44 | 3,000,000 | 3,723,720 | |||||
(Mental Health Center Denver Project) | |||||||
Series A 5.75% 2/1/44 | 1,875,000 | 2,042,625 | |||||
Cuyahoga County, Ohio | |||||||
(The Metro Health System) | |||||||
5.25% 2/15/47 | 2,235,000 | 2,669,931 | |||||
5.50% 2/15/57 | 3,000,000 | 3,579,090 | |||||
Glendale, Arizona Industrial Development Authority Revenue | |||||||
(Royal Oaks Inspirata Pointe Project) | |||||||
Series A 5.00% 5/15/56 | 2,500,000 | 2,849,550 | |||||
Hamilton County, Ohio Hospital Facilities Revenue | |||||||
(Cincinnati Children’s Hospital Medical Center) | |||||||
Series CC 5.00% 11/15/49 | 7,010,000 | 10,996,447 | |||||
Harris County Cultural Education Facilities Finance | |||||||
(Texas Children’s Hospital) | |||||||
Series A 4.00% 10/1/42 | 6,500,000 | 7,854,210 | |||||
Illinois Finance Authority Revenue | |||||||
(The Admiral at the Lake Project) | |||||||
5.50% 5/15/54 | 375,000 | 398,955 | |||||
Lake County, Florida Retirement Facility Revenue | |||||||
(Lakeside At Waterman Village Project) | |||||||
Series A 5.75% 8/15/50 | 500,000 | 574,515 | |||||
Lake County, Ohio Port & Economic Development Authority | |||||||
(Tapestry Wicklife, LLC Project) | |||||||
Series A 144A 6.75% 12/1/52 #, ‡ | 1,300,000 | 461,500 |
35
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Louisiana Local Government Environmental Facilities & | |||||||
Community Development Authority Revenue | |||||||
(The Glen Retirement System Project) | |||||||
Series A 5.00% 1/1/49 | 2,500,000 | $ | 2,507,425 | ||||
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 | 1,245,106 | |||||
Maryland Health & Higher Educational Facilities Authority | |||||||
Revenue | |||||||
(Adventist Healthcare Obligated) | |||||||
Series A 5.50% 1/1/46 | 2,000,000 | 2,399,760 | |||||
Miami-Dade County, Florida Health Facilities Authority Revenue | |||||||
(Nicklaus Children’s Hospital Project) | |||||||
5.00% 8/1/42 | 1,500,000 | 1,808,475 | |||||
Montgomery County, Pennsylvania Industrial Development | |||||||
Authority Revenue | |||||||
(Foulkeways At Gwynedd Project) | |||||||
5.00% 12/1/46 | 1,500,000 | 1,668,240 | |||||
Moon, Pennsylvania Industrial Development Authority | |||||||
(Baptist Homes Society Obligation) | |||||||
6.125% 7/1/50 | 2,250,000 | 2,431,373 | |||||
Nash Health Care Systems Revenue, North Carolina | |||||||
5.50% 11/1/26 (AGM) | 1,000,000 | 1,004,390 | |||||
New Hope, Texas Cultural Education Facilities Finance | |||||||
(Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project) | |||||||
Series A1 5.00% 7/1/46 | 125,000 | 130,155 | |||||
(Legacy Midtown Park Project) | |||||||
Series A 5.50% 7/1/54 | 2,250,000 | 2,390,287 | |||||
New York State Dormitory Authority | |||||||
(Orange Regional Medical Center) | |||||||
144A 5.00% 12/1/34 # | 400,000 | 482,884 | |||||
144A 5.00% 12/1/35 # | 1,200,000 | 1,446,624 | |||||
144A 5.00% 12/1/37 # | 800,000 | 961,024 | |||||
Norfolk Economic Development Authority Revenue, Virginia | |||||||
(Sentara Healthcare) | |||||||
Series B 5.00% 11/1/43 | 1,000,000 | 1,051,490 | |||||
Orange County, New York Funding Corporation Assisted Living | |||||||
Residence Revenue | |||||||
6.50% 1/1/46 | 2,900,000 | 2,933,814 | |||||
Palm Beach County, Florida Health Facilities Authority Revenue | |||||||
(Sinai Residences Boca Raton Project) | |||||||
Series A 7.50% 6/1/49 | 610,000 | 646,417 |
36
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Pennsylvania Economic Development Financing Authority First | |||||||
Mortgage Revenue | |||||||
(Tapestry Moon Senior Housing Project) | |||||||
Series A 144A 6.50% 12/1/38 #, ‡ | 3,285,000 | $ | 1,938,150 | ||||
Series A 144A 6.75% 12/1/53 #, ‡ | 3,765,000 | 2,221,350 | |||||
Pennsylvania Higher Educational Facilities Authority Revenue | |||||||
(Thomas Jefferson University) | |||||||
Series A 5.00% 9/1/45 | 2,000,000 | 2,270,640 | |||||
(University Of Pennsylvania Health System) | |||||||
4.00% 8/15/49 | 5,000,000 | 5,815,050 | |||||
Rochester, Minnesota | |||||||
(The Homestead at Rochester) | |||||||
Series A 6.875% 12/1/48 | 2,350,000 | 2,527,190 | |||||
Seminole County, Florida Industrial Development Authority | |||||||
Revenue | |||||||
(Legacy Pointe at UCF Project) | |||||||
Series A 5.50% 11/15/49 | 4,000,000 | 4,455,080 | |||||
Tarrant County, Texas Cultural Education Facilities Finance | |||||||
Corporation Retirement Facility Revenue | |||||||
(Buckner Senior Living - Ventana Project) | |||||||
6.625% 11/15/37 | 1,100,000 | 1,268,861 | |||||
Tempe, Arizona Industrial Development Authority Revenue | |||||||
(Friendship Village) | |||||||
Series A 6.25% 12/1/46 | 1,000,000 | 1,007,400 | |||||
(Mirabella at ASU Project) | |||||||
Series A 144A 6.125% 10/1/52 # | 1,830,000 | 2,034,850 | |||||
University of North Carolina at Chapel Hill | |||||||
5.00% 2/1/46 | 500,000 | 591,040 | |||||
Washington State Housing Finance Commission | |||||||
(Heron’s Key Senior Living) | |||||||
Series A 144A 7.00% 7/1/45 # | 5,095,000 | 5,655,399 | |||||
136,904,964 | |||||||
Housing Revenue Bonds – 0.06% | |||||||
Massachusetts Housing Finance Agency | |||||||
Series A 5.25% 12/1/35 (FHA) | 695,000 | 700,831 | |||||
700,831 | |||||||
Lease Revenue Bonds – 5.87% | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(Lincoln South Beltway Project) | |||||||
5.00% 2/1/30 | 150,000 | 197,576 |
37
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Lease Revenue Bonds (continued) | |||||||
Concord City, California | |||||||
(2021 Capital Improvement Project) | |||||||
2.125% 4/1/41 | 520,000 | $ | 502,471 | ||||
Kansas City, Missouri | |||||||
(Downtown Streetcar Project) | |||||||
Series A 5.00% 9/1/34 | 4,000,000 | 4,015,160 | |||||
Metropolitan Pier & Exposition Authority, Illinois | |||||||
(McCormick Place Expansion Project) | |||||||
Series A 4.00% 12/15/42 | 3,000,000 | 3,460,440 | |||||
Series A 4.00% 12/15/47 | 9,520,000 | 10,864,890 | |||||
Series A 4.00% 6/15/50 (BAM) | 2,000,000 | 2,292,120 | |||||
Series A 4.00% 6/15/52 | 3,000,000 | 3,411,840 | |||||
Series A 5.00% 6/15/50 (BAM) | 2,850,000 | 3,558,538 | |||||
Series A 5.00% 6/15/57 | 1,620,000 | 1,923,637 | |||||
Series B 2.345% 12/15/54 (BAM) ^ | 10,000,000 | 4,149,000 | |||||
Minnesota Housing Finance Agency | |||||||
(State Appropriation) | |||||||
5.00% 8/1/31 | 250,000 | 250,995 | |||||
New Jersey Transportation Trust Fund Authority | |||||||
(Federal Highway Reimbursement Revenue) | |||||||
Series A 5.00% 6/15/31 | 100,000 | 118,557 | |||||
(Transportation Program) | |||||||
Series AA 4.00% 6/15/50 (BAM) | 12,055,000 | 14,256,725 | |||||
Series AA 5.00% 6/15/24 | 5,000,000 | 5,186,350 | |||||
New York City, New York Transitional Finance Authority Building | |||||||
Aid Revenue | |||||||
Series S-1 5.00% 7/15/37 | 5,000,000 | 5,205,750 | |||||
New York State Thruway Authority Revenue | |||||||
Series A-1 4.00% 3/15/52 | 2,000,000 | 2,351,300 | |||||
Phoenix City, Arizona Civic Improvement | |||||||
(Junior Lien Water System) | |||||||
Series A 5.00% 7/1/45 | 5,000,000 | 6,578,400 | |||||
68,323,749 | |||||||
Local General Obligation Bonds – 5.21% | |||||||
Chicago, Illinois | |||||||
Series A 5.25% 1/1/29 | 2,020,000 | 2,217,495 | |||||
Series A 5.50% 1/1/49 | 1,000,000 | 1,239,980 | |||||
Series A 6.00% 1/1/38 | 525,000 | 653,247 | |||||
Chicago, Illinois Board of Education | |||||||
5.00% 4/1/42 | 1,160,000 | 1,374,310 | |||||
5.00% 4/1/46 | 1,185,000 | 1,397,079 |
38
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Local General Obligation Bonds (continued) | |||||||
Los Angeles, California Community College District | |||||||
Series C 5.00% 8/1/25 | 2,500,000 | $ | 2,967,175 | ||||
Mecklenburg County, North Carolina | |||||||
Series A 5.00% 4/1/25 | 2,500,000 | 2,925,250 | |||||
Series A 5.00% 9/1/25 | 8,000,000 | 9,502,320 | |||||
Montgomery County, Pennsylvania | |||||||
Series A 5.00% 1/1/37 | 2,490,000 | 3,300,047 | |||||
New York City, New York | |||||||
Fiscal 2021 Series C 5.00% 8/1/43 | 1,500,000 | 1,917,000 | |||||
Series A-1 4.00% 8/1/40 | 5,670,000 | 6,812,221 | |||||
Series E 5.00% 3/1/41 | 100,000 | 123,117 | |||||
Series E-1 5.00% 3/1/44 | 5,000,000 | 6,122,700 | |||||
Series F-1 5.00% 4/1/45 | 5,355,000 | 6,559,447 | |||||
Subseries B-1 5.00% 12/1/37 | 4,500,000 | 5,476,365 | |||||
Subseries B-1 5.00% 12/1/41 | 5,000,000 | 6,073,350 | |||||
Subseries D-1 4.00% 12/1/42 | 1,700,000 | 1,982,166 | |||||
Subseries D-1 5.00% 10/1/36 | 20,000 | 20,077 | |||||
60,663,346 | |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 2.92% | |||||||
Broward County, Florida Airport System Revenue | |||||||
Series C 5.25% 10/1/30-23 § | 5,000,000 | 5,523,950 | |||||
Kent Hospital Finance Authority Revenue, Michigan | |||||||
(Spectrum Health System) | |||||||
Series A 5.00% 11/15/29-21 § | 1,000,000 | 1,009,950 | |||||
Massachusetts School Building Authority Revenue | |||||||
Series C 5.00% 8/15/31-25 § | 1,480,000 | 1,751,195 | |||||
Michigan State Building Authority Revenue | |||||||
(Facilities Program) | |||||||
Series I-A 5.00% 10/15/29-21 § | 1,000,000 | 1,005,860 | |||||
New York City, New York | |||||||
Subseries D-1 5.00% 10/1/36-21 § | 2,500,000 | 2,509,875 | |||||
Oklahoma State Turnpike Authority Revenue | |||||||
(First Senior) | |||||||
6.00% 1/1/22 | 13,535,000 | 13,795,955 | |||||
Philadelphia, Pennsylvania Water & Wastewater Revenue | |||||||
5.00% 11/1/28-22 § | 1,000,000 | 1,056,250 | |||||
Richmond, Virginia Public Utility Revenue | |||||||
Series A 5.00% 1/15/38-23 § | 500,000 | 533,375 | |||||
Rockwall Independent School District, Texas | |||||||
5.00% 2/15/46-25 (PSF) § | 2,000,000 | 2,327,140 |
39
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | |||||||
Southwestern Illinois Development Authority Revenue | |||||||
(Memorial Group) | |||||||
7.125% 11/1/43-23 § | 2,000,000 | $ | 2,296,060 | ||||
University of Massachusetts Building Authority Revenue | |||||||
Senior Series 2013-1 5.00% 11/1/39-22 § | 1,000,000 | 1,056,860 | |||||
Waterbury, Connecticut | |||||||
Lot A 5.00% 12/1/32-23 § | 1,000,000 | 1,108,760 | |||||
33,975,230 | |||||||
Resource Recovery Revenue Bond – 0.18% | |||||||
Union County, New Jersey Improvement Authority Revenue | |||||||
(Aries Linden, LLC Project) | |||||||
144A 6.75% 12/1/41 (AMT) # | 1,950,000 | 2,066,376 | |||||
2,066,376 | |||||||
Special Tax Revenue Bonds – 15.45% | |||||||
Bullhead City, Arizona Excise Taxes Revenue | |||||||
2.55% 7/1/46 | 7,000,000 | 7,033,040 | |||||
2.70% 7/1/51 | 3,000,000 | 3,012,720 | |||||
Conley Road Transportation Development District, Missouri | |||||||
5.375% 5/1/47 | 2,200,000 | 2,292,114 | |||||
CPR Custodial Receipt | |||||||
(Taxable) | |||||||
Series 2021-1 144A 0.649% 1/1/45 # | 12,000,000 | 11,100,000 | |||||
GDB Debt Recovery Authority of Puerto Rico | |||||||
7.50% 8/20/40 | 9,622,598 | 9,045,242 | |||||
Illinois State | |||||||
First Series 6.00% 6/15/26 (NATL) | 1,000,000 | 1,252,910 | |||||
Massachusetts Bay Transportation Authority Sales Tax Revenue | |||||||
4.00% 5/1/25 | 16,000,000 | 18,138,880 | |||||
Massachusetts School Building Authority Revenue | |||||||
Series C 5.00% 8/15/31 | 1,020,000 | 1,200,836 | |||||
Metropolitan Transportation Authority Revenue, New York | |||||||
(Climate Bond Certified) | |||||||
Series B-2 5.00% 11/15/36 | 2,000,000 | 2,412,780 | |||||
New Jersey Economic Development Authority Revenue | |||||||
(Cigarette Tax) | |||||||
5.00% 6/15/28 | 2,695,000 | 2,786,657 | |||||
New York City, New York Transitional Finance Authority | |||||||
(Future Tax Secured Fiscal 2014) | |||||||
Series A-1 5.00% 11/1/42 | 10,000,000 | 10,952,900 |
40
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
New York City, New York Transitional Finance Authority Building | |||||||
Aid Revenue | |||||||
Subordinate Subseries S-3A 5.00% 7/15/37 | 2,500,000 | $ | 3,149,350 | ||||
New York State Dormitory Authority Revenue | |||||||
Series A 5.00% 2/15/31 | 100,000 | 122,444 | |||||
Series A 5.00% 3/15/39 | 4,000,000 | 4,870,280 | |||||
Series A 5.00% 3/15/42 | 2,000,000 | 2,426,440 | |||||
Series B 5.00% 3/15/34 | 5,000,000 | 5,128,950 | |||||
New York State Urban Development Revenue | |||||||
(General Purpose) | |||||||
Series A 5.00% 3/15/37 | 3,000,000 | 3,774,300 | |||||
Series E 4.00% 3/15/38 | 2,755,000 | 3,273,050 | |||||
Public Finance Authority, Wisconsin | |||||||
(American Dream @ Meadowlands Project) | |||||||
144A 7.00% 12/1/50 # | 2,155,000 | 2,478,250 | |||||
Puerto Rico Sales Tax Financing Revenue | |||||||
(Restructured) | |||||||
Series A-1 4.55% 7/1/40 | 1,456,000 | 1,675,448 | |||||
Series A-1 4.75% 7/1/53 | 18,458,000 | 21,123,335 | |||||
Series A-1 4.91% 7/1/51 ^ | 15,600,000 | 3,790,956 | |||||
Series A-1 5.00% 7/1/58 | 21,607,000 | 25,017,665 | |||||
Series A-1 5.433% 7/1/46 ^ | 23,920,000 | 7,992,390 | |||||
Series A-2 4.329% 7/1/40 | 7,194,000 | 8,177,995 | |||||
Series A-2 4.329% 7/1/40 | 4,289,000 | 4,875,650 | |||||
Series A-2 4.784% 7/1/58 | 7,930,000 | 9,075,013 | |||||
Sales Tax Securitization, Illinois | |||||||
Series A 5.00% 1/1/40 | 150,000 | 181,743 | |||||
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 | 3,310,000 | 3,376,365 | |||||
179,737,703 | |||||||
State General Obligation Bonds – 15.04% | |||||||
California State | |||||||
4.00% 10/1/36 | 3,000,000 | 3,674,040 | |||||
5.00% 9/1/32 | 2,415,000 | 3,319,756 | |||||
(Various Purpose) | |||||||
4.00% 3/1/36 | 5,000,000 | 6,092,650 | |||||
5.00% 8/1/27 | 2,500,000 | 3,053,500 | |||||
5.00% 3/1/30 | 5,000,000 | 5,805,950 | |||||
5.00% 4/1/32 | 1,450,000 | 2,021,111 |
41
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
California State | |||||||
(Various Purpose) | |||||||
5.00% 4/1/37 | 5,000,000 | $ | 5,366,250 | ||||
5.00% 10/1/47 | 2,145,000 | 2,546,051 | |||||
Commonwealth of Massachusetts | |||||||
Series A 5.50% 8/1/30 (AMBAC) | 1,000,000 | 1,390,130 | |||||
Commonwealth of Puerto Rico | |||||||
(Public Improvement) | |||||||
Series A 5.00% 7/1/24 ‡ | 1,905,000 | 1,793,081 | |||||
Series A 5.00% 7/1/41 ‡ | 4,360,000 | 3,744,150 | |||||
Series A 5.125% 7/1/37 ‡ | 13,810,000 | 12,118,275 | |||||
Series A 5.25% 7/1/22 ‡ | 1,820,000 | 1,717,625 | |||||
Series A 5.25% 7/1/27 ‡ | 50,000 | 47,188 | |||||
Series A 5.25% 7/1/30 ‡ | 6,000,000 | 5,662,500 | |||||
Series A 5.25% 7/1/31 ‡ | 1,270,000 | 1,211,263 | |||||
Series A 5.25% 7/1/34 ‡ | 1,565,000 | 1,484,794 | |||||
Series A 5.375% 7/1/33 ‡ | 880,000 | 825,000 | |||||
Series A 5.50% 7/1/39 ‡ | 2,835,000 | 2,551,500 | |||||
Series A 5.75% 7/1/28 ‡ | 1,945,000 | 1,755,362 | |||||
Series A 6.00% 7/1/38 ‡ | 545,000 | 519,113 | |||||
Series A 8.00% 7/1/35 ‡ | 8,485,000 | 7,222,856 | |||||
Series B 5.00% 7/1/35 ‡ | 1,295,000 | 1,220,537 | |||||
Connecticut State | |||||||
Series B 5.00% 6/15/35 | 2,475,000 | 2,863,426 | |||||
Series E 5.00% 9/15/35 | 2,500,000 | 3,163,975 | |||||
Series E 5.00% 9/15/37 | 2,250,000 | 2,844,608 | |||||
Florida State | |||||||
(Department Of Transportation Right-of-Way Acquisition and | |||||||
Bridge Construction) | |||||||
Series A 4.00% 7/1/33 | 2,500,000 | 3,010,025 | |||||
Series A 4.00% 7/1/34 | 3,660,000 | 4,394,342 | |||||
Georgia State | |||||||
Series A 5.00% 7/1/33 | 9,745,000 | 13,350,553 | |||||
Illinois State | |||||||
5.00% 5/1/36 | 480,000 | 528,600 | |||||
5.00% 11/1/36 | 1,780,000 | 2,070,781 | |||||
5.00% 2/1/39 | 2,030,000 | 2,221,632 | |||||
5.25% 2/1/30 | 3,490,000 | 3,874,737 | |||||
5.25% 2/1/32 | 1,180,000 | 1,305,576 | |||||
5.25% 2/1/33 | 740,000 | 817,811 | |||||
5.50% 5/1/39 | 5,000,000 | 6,444,000 |
42
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
Illinois State | |||||||
Series A 4.00% 12/1/33 | 1,010,000 | $ | 1,141,310 | ||||
Series A 5.00% 4/1/38 | 885,000 | 934,932 | |||||
Series D 5.00% 11/1/27 | 3,500,000 | 4,311,860 | |||||
(Rebuild Illinois Program) | |||||||
Series B 4.00% 11/1/39 | 10,700,000 | 12,275,682 | |||||
Maryland State | |||||||
Series A 5.00% 3/15/26 | 5,000,000 | 6,041,300 | |||||
Series A 5.00% 3/15/28 | 3,000,000 | 3,841,830 | |||||
Texas State | |||||||
(Transportation Commission Mobility) | |||||||
Series A 5.00% 10/1/33 | 1,755,000 | 2,187,607 | |||||
Washington State | |||||||
Series A 5.00% 8/1/35 | 10,890,000 | 14,348,555 | |||||
Series C 5.00% 2/1/36 | 6,060,000 | 7,853,881 | |||||
174,969,705 | |||||||
Transportation Revenue Bonds – 15.95% | |||||||
Broward County, Florida Airport System Revenue | |||||||
Series A 4.00% 10/1/49 (AMT) | 5,000,000 | 5,766,200 | |||||
Series A 5.00% 10/1/33 (AMT) | 100,000 | 128,171 | |||||
Central Florida Expressway Authority Senior Lien Revenue | |||||||
Series A 5.00% 7/1/33 | 100,000 | 128,643 | |||||
Chicago, Illinois Midway International Airport | |||||||
Series A 5.00% 1/1/28 (AMT) | 2,025,000 | 2,232,725 | |||||
Chicago, Illinois O’Hare International Airport | |||||||
Series A 5.00% 1/1/37 (AMT) | 1,690,000 | 2,099,369 | |||||
Series A 5.00% 1/1/38 (AMT) | 600,000 | 743,784 | |||||
Series B 5.00% 1/1/33 | 2,345,000 | 2,689,785 | |||||
Series D 5.25% 1/1/42 | 2,000,000 | 2,425,320 | |||||
Chicago, Illinois Transit Authority Revenue | |||||||
Series A 4.00% 12/1/50 | 2,000,000 | 2,312,160 | |||||
Series A 5.00% 12/1/45 | 2,000,000 | 2,492,060 | |||||
Dallas, Texas Fort Worth International Airport Revenue | |||||||
Series F 5.25% 11/1/30 | 5,000,000 | 5,533,050 | |||||
Denver City & County, Colorado Airport System Revenue | |||||||
Series A 5.00% 12/1/43 (AMT) | 6,000,000 | 7,360,380 | |||||
Georgia State Road & Tollway Authority Revenue | |||||||
(Managed Lane System) | |||||||
Series A 4.00% 7/15/46 | 5,000,000 | 6,063,350 | |||||
Harris County, Texas Toll Road Authority | |||||||
Senior Lien Series A 5.00% 8/15/27 | 3,750,000 | 4,710,075 |
43
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Love Field Airport Modernization, Texas General Airport Revenue | |||||||
Bonds | |||||||
5.00% 11/1/35 (AMT) | 1,000,000 | $ | 1,201,590 | ||||
5.00% 11/1/36 (AMT) | 1,000,000 | 1,200,930 | |||||
Massachusetts Port Authority Revenue | |||||||
Series A 5.00% 7/1/37 (AMT) | 4,000,000 | 5,011,080 | |||||
Series A 5.00% 7/1/39 (AMT) | 2,945,000 | 3,672,827 | |||||
Series A 5.00% 7/1/40 (AMT) | 1,825,000 | 2,271,596 | |||||
Metropolitan Nashville, Tennessee Airport Authority | |||||||
Series A 5.00% 7/1/45 | 5,020,000 | 5,831,383 | |||||
Metropolitan Transportation Authority Revenue, New York | |||||||
Series D 5.00% 11/15/33 | 1,485,000 | 1,828,763 | |||||
(Green Bonds) | |||||||
Series A-1 5.00% 11/15/47 | 2,000,000 | 2,465,160 | |||||
Series C-1 5.25% 11/15/55 | 750,000 | 931,567 | |||||
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 | 4,928,976 | |||||
Montgomery County, Texas Toll Road Authority Revenue | |||||||
(Senior Lien) | |||||||
5.00% 9/15/37 | 1,750,000 | 1,986,915 | |||||
New Jersey Turnpike Authority | |||||||
Series A 5.00% 1/1/28 | 5,000,000 | 5,655,350 | |||||
Series E 5.00% 1/1/45 | 6,000,000 | 6,862,860 | |||||
New York Transportation Development Corporation Special | |||||||
Facilities Revenue | |||||||
(Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D | |||||||
Redevelopment Project) | |||||||
4.375% 10/1/45 (AMT) | 12,800,000 | 15,208,320 | |||||
North Carolina Turnpike Authority Revenue | |||||||
5.00% 1/1/36 (AGM) | 3,000,000 | 3,774,180 | |||||
North Texas Tollway Authority Revenue | |||||||
(1st Tier) Series B 5.00% 1/1/40 | 2,000,000 | 2,123,320 | |||||
(2nd Tier) Series A 5.00% 1/1/34 | 5,000,000 | 5,724,400 | |||||
Series A 4.00% 1/1/38 | 225,000 | 244,584 | |||||
Series A 5.00% 1/1/43 | 7,000,000 | 8,618,890 | |||||
Ohio Turnpike & Infrastructure Commission | |||||||
(Infrastructure Projects) | |||||||
Series A-1 5.00% 2/15/28 | 300,000 | 320,676 | |||||
Pennsylvania Turnpike Commission Revenue | |||||||
Series A-2 5.00% 12/1/43 | 2,000,000 | 2,488,980 |
44
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Pennsylvania Turnpike Commission Revenue | |||||||
Series C 5.00% 12/1/44 | 1,000,000 | $ | 1,134,850 | ||||
Philadelphia City, Pennsylvania Airport Revenue | |||||||
4.00% 7/1/46 (AGM) (AMT) | 4,090,000 | 4,794,625 | |||||
Phoenix City, Arizona Civic Improvement Airport Revenue | |||||||
Series B 5.00% 7/1/49 (AMT) | 5,000,000 | 6,175,300 | |||||
Regional Transportation District, Colorado | |||||||
(Denver Transit Partners Eagle P3 Project) | |||||||
Series A 4.00% 7/15/40 | 2,670,000 | 3,543,143 | |||||
Salt Lake City, Utah Airport Revenue | |||||||
Series A 5.00% 7/1/36 (AMT) | 4,000,000 | 4,935,480 | |||||
Series B 5.00% 7/1/42 | 3,450,000 | 4,201,720 | |||||
San Francisco, California City International Airport Commission | |||||||
Series A 5.00% 5/1/44 (AMT) | 5,000,000 | 6,182,650 | |||||
South Jersey Port, New Jersey | |||||||
(Subordinated Marine Terminal) | |||||||
Series A 5.00% 1/1/49 | 450,000 | 540,855 | |||||
Series B 5.00% 1/1/42 (AMT) | 1,450,000 | 1,733,823 | |||||
Series B 5.00% 1/1/48 (AMT) | 6,035,000 | 7,167,709 | |||||
Texas Private Activity Bond Surface Transportation Corporate | |||||||
Senior Lien | |||||||
(NTE Mobility Partners Segments 3 LLC Segment 3A and 3B | |||||||
Facility) | |||||||
6.75% 6/30/43 (AMT) | 2,490,000 | 2,801,001 | |||||
7.00% 12/31/38 (AMT) | 1,830,000 | 2,068,833 | |||||
(NTE Mobility Partners Segments 3 LLC Segment 3C Project) | |||||||
5.00% 6/30/58 (AMT) | 5,000,000 | 6,077,700 | |||||
Triborough Bridge & Tunnel Authority Revenue, | |||||||
New York | |||||||
(MTA Bridges and Tunnels) | |||||||
Series A 5.00% 11/15/49 | 85,000 | 109,372 | |||||
Virginia Small Business Financing Authority Revenue | |||||||
(Transform 66 P3 Project) | |||||||
5.00% 12/31/56 (AMT) | 1,220,000 | 1,462,475 | |||||
Washington, Metropolitan Area Transit Authority Revenue, | |||||||
Columbia | |||||||
5.00% 7/1/43 | 1,000,000 | 1,209,240 | |||||
Wayne County, Michigan Airport Authority | |||||||
(Detroit Metropolitan Wayne County Airport) | |||||||
Series A 5.00% 12/1/42 | 2,500,000 | 2,643,325 | |||||
Series D 5.00% 12/1/45 (AGM) | 750,000 | 882,563 |
45
Schedules of investments
Delaware Tax-Free USA Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Westchester County, New York Industrial Development Agency | |||||||
(Million Air Two LLC General Aviation Facilities Project) | |||||||
Series A 144A 7.00% 6/1/46 (AMT) # | 775,000 | $ | 834,536 | ||||
185,536,619 | |||||||
Water & Sewer Revenue Bonds – 2.23% | |||||||
Carefree Utilities Community Facilities District, Arizona | |||||||
4.00% 7/1/41 | 1,350,000 | 1,603,017 | |||||
4.00% 7/1/46 | 1,350,000 | 1,581,269 | |||||
Collier County Water-Sewer District, Florida | |||||||
4.00% 7/1/42 | 9,660,000 | 11,772,932 | |||||
Decatur City, Alabama Water & Sewer Revenue | |||||||
Series A 4.00% 8/15/50 | 5,365,000 | 6,329,305 | |||||
Guam Government Waterworks Authority | |||||||
Series A 5.00% 1/1/50 | 2,000,000 | 2,452,120 | |||||
Mississippi Development Bank | |||||||
(Jackson Water and Sewer System Revenue Bond Project) | |||||||
6.75% 12/1/30 (AGM) | 1,000,000 | 1,129,160 | |||||
Toledo, Ohio Water System Revenue | |||||||
5.00% 11/15/38 | 1,000,000 | 1,074,540 | |||||
25,942,343 | |||||||
Total Municipal Bonds (cost $1,043,340,171) | 1,151,598,088 | ||||||
Short-Term Investments – 2.26% | |||||||
Variable Rate Demand Notes – 2.26%¤ | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(Phoenix Children’s Hospital) Series A 0.01% 2/1/48 | |||||||
(LOC – JPMorgan Chase Bank N.A.) | 300,000 | 300,000 | |||||
Idaho Health Facilities Authority Revenue | |||||||
(St. Luke’s Health System Project) Series C 0.01% 3/1/48 | |||||||
(LOC – US Bank N.A.) | 425,000 | 425,000 | |||||
Los Angeles Department of Water & Power Revenue | |||||||
Series A 0.01% 7/1/45 | |||||||
(SPA - TD Bank N.A.) | 2,750,000 | 2,750,000 | |||||
(Power System) Subordinate Series A-1 0.01% 7/1/50 | 4,100,000 | 4,100,000 | |||||
Mississippi Business Finance Corporation Gulf Opportunity Zone | |||||||
Industrial Development Revenue | |||||||
(Chevron U.S.A. Inc. Project) | |||||||
Series A 0.01% 12/1/30 | 2,690,000 | 2,690,000 | |||||
Series B 0.01% 12/1/30 | 2,410,000 | 2,410,000 | |||||
Series C 0.01% 12/1/30 | 3,310,000 | 3,310,000 |
46
Principal | |||||||
amount° | Value (US $) | ||||||
Short-Term Investments (continued) | |||||||
Variable Rate Demand Notes (continued) | |||||||
Mississippi Business Finance Corporation Gulf Opportunity Zone | |||||||
Industrial Development Revenue | |||||||
(Chevron U.S.A. Inc. Project) | |||||||
Series F 0.01% 12/1/30 | 3,250,000 | $ | 3,250,000 | ||||
Series G 0.01% 11/1/35 | 4,040,000 | 4,040,000 | |||||
Series G 0.01% 11/1/35 | 300,000 | 300,000 | |||||
Series K 0.01% 11/1/35 | 1,965,000 | 1,965,000 | |||||
Series L 0.01% 11/1/35 | 400,000 | 400,000 | |||||
Oregon State Facilities Authority Revenue | |||||||
(PeaceHealth) Series B 0.01% 8/1/34 | |||||||
(LOC - TD Bank N.A.) | 300,000 | 300,000 | |||||
Total Short-Term Investments (cost $26,240,000) | 26,240,000 | ||||||
Total Value of Securities–101.25% | |||||||
(cost $1,069,580,171) | $ | 1,177,838,088 |
° | 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, 2021, the aggregate value of Rule 144A securities was $83,126,534, which represents 7.15% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. 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 descriptions. |
§ | 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 10 in “Notes to financial statements.” |
47
Schedules of investments
Delaware Tax-Free USA Fund
¤ | 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, 2021. |
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 |
BAM – Insured by Build America Mutual Assurance |
FHA – Federal Housing Administration |
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 |
NATL – Insured by National Public Finance Guarantee Corporation |
PSF – Guaranteed by Permanent School Fund |
SPA – Stand-by Purchase Agreement |
USD – US Dollar |
See accompanying notes, which are an integral part of the financial statements.
48
Schedules of investments | |
Delaware Tax-Free USA Intermediate Fund | August 31, 2021 |
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds – 102.76% | |||||||
Corporate Revenue Bonds – 12.03% | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(Legacy Cares, Inc. Project) | |||||||
Series A 144A 7.75% 7/1/50 # | 5,520,000 | $ | 6,653,587 | ||||
Black Belt Energy Gas District, Alabama | |||||||
(Project No. 4) | |||||||
Series A 4.00% 6/1/25 | 1,655,000 | 1,875,330 | |||||
Buckeye, Ohio Tobacco Settlement Financing Authority | |||||||
Series A-2 5.00% 6/1/32 | 1,270,000 | 1,647,558 | |||||
Series A-2 5.00% 6/1/33 | 850,000 | 1,097,843 | |||||
(Senior) | |||||||
Series A-2 3.00% 6/1/48 | 2,425,000 | 2,519,672 | |||||
Series A-2 4.00% 6/1/48 | 5,310,000 | 6,103,049 | |||||
California Pollution Control Financing Authority Revenue | |||||||
(Calplant I Project) | |||||||
144A 8.00% 7/1/39 (AMT) #, ‡ | 875,000 | 568,750 | |||||
Central Plains Energy Project Nebraska | |||||||
(Project No. 3) | |||||||
Series A 5.00% 9/1/42 | 250,000 | 370,540 | |||||
Chandler, Arizona Industrial Development Authority Revenue | |||||||
(Intel Corporation Project) | |||||||
2.70% 12/1/37 (AMT) ● | 2,700,000 | 2,818,800 | |||||
Commonwealth of Pennsylvania Financing Authority | |||||||
(Tobacco Master Settlement Payment) | |||||||
5.00% 6/1/27 | 2,000,000 | 2,475,100 | |||||
Denver City & County, Colorado Special Facilities Airport | |||||||
Revenue | |||||||
(United Airlines Project) | |||||||
5.00% 10/1/32 (AMT) | 1,190,000 | 1,267,088 | |||||
Erie, New York Tobacco Asset Securitization | |||||||
(Capital Appreciation-Asset-Backed) | |||||||
Series A 144A 1.495% 6/1/60 #, ^ | 36,000,000 | 1,963,080 | |||||
Florida Development Finance Corporation Surface | |||||||
Transportation Facility Revenue | |||||||
(Brightline Passenger Rail Project) | |||||||
Series B 144A 7.375% 1/1/49 (AMT) # | 5,435,000 | 5,975,891 | |||||
(Virgin Trains USA Passenger Rail Project) | |||||||
Series A 144A 6.50% 1/1/49 (AMT) #, ● | 1,710,000 | 1,770,671 | |||||
George L Smith II Georgia World Congress Center Authority | |||||||
Series A 4.00% 1/1/54 | 2,210,000 | 2,521,721 |
49
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Golden State, California Tobacco Securitization Corporate | |||||||
Settlement Revenue | |||||||
(Asset-Backed Bonds) | |||||||
Series A-1 5.00% 6/1/26 | 850,000 | $ | 1,023,927 | ||||
Series A-1 5.00% 6/1/34 | 100,000 | 123,679 | |||||
Series A-1 5.25% 6/1/47 | 750,000 | 776,692 | |||||
(Capital Appreciation-Asset-Backed) | |||||||
Series B 1.05% 6/1/47 ^ | 11,840,000 | 2,681,050 | |||||
Houston, Texas Airport System Revenue | |||||||
(United Airlines) | |||||||
5.00% 7/1/29 (AMT) | 3,010,000 | 3,302,361 | |||||
Inland, California Empire Tobacco Securitization | |||||||
(Capital Appreciation-Turbo-Asset-Backed) | |||||||
Series E 144A 1.33% 6/1/57 #, ^ | 62,600,000 | 4,313,140 | |||||
Series F 144A 0.396% 6/1/57 #, ^ | 74,090,000 | 4,378,719 | |||||
Jefferson County, Texas Industrial Development | |||||||
(TRP Crude Marketing LLC Project) | |||||||
144A 7.75% 4/1/39 # | 925,000 | 965,737 | |||||
Kentucky Public Energy Authority | |||||||
(Gas Supply Revenue Bonds) | |||||||
Series C-1 4.00% 12/1/49 ● | 5,000,000 | 5,618,450 | |||||
Lower Alabama Gas District | |||||||
Series A 5.00% 9/1/34 | 4,850,000 | 6,583,826 | |||||
Michigan Finance Authority | |||||||
Series A Class 1 4.00% 6/1/49 | 2,000,000 | 2,330,600 | |||||
Monroe County, Michigan Economic Development | |||||||
(The Detroit Edison Company Project) | |||||||
Series AA 6.95% 9/1/22 (NATL) | 4,500,000 | 4,799,700 | |||||
M-S-R Energy Authority, California Gas Revenue | |||||||
Series B 6.50% 11/1/39 | 3,485,000 | 5,728,957 | |||||
New Jersey Economic Development Authority Special Facilities | |||||||
Revenue | |||||||
(Continental Airlines Project) | |||||||
Series B 5.625% 11/15/30 (AMT) | 1,890,000 | 2,110,147 | |||||
New Jersey Tobacco Settlement Financing | |||||||
Subordinate Series B 5.00% 6/1/46 | 4,455,000 | 5,297,485 | |||||
New York Liberty Development Revenue | |||||||
(Goldman Sachs Headquarters) | |||||||
5.25% 10/1/35 | 3,405,000 | 4,895,607 |
50
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
New York Transportation Development Special Facilities | |||||||
Revenue | |||||||
(Delta Airlines, Inc.-LaGuardia Airport Terminals C&D | |||||||
Redevelopment Project) | |||||||
5.00% 1/1/34 (AMT) | 7,210,000 | $ | 8,742,990 | ||||
Public Authority for Colorado Energy Natural Gas Revenue | |||||||
6.50% 11/15/38 | 3,000,000 | 4,685,280 | |||||
Salt Verde, Arizona Financial Corporation Senior Gas Revenue | |||||||
5.00% 12/1/32 | 3,850,000 | 5,161,733 | |||||
5.00% 12/1/37 | 4,000,000 | 5,658,720 | |||||
5.25% 12/1/24 | 3,050,000 | 3,496,825 | |||||
South Carolina Jobs - Economic Development Authority | |||||||
Educational Facilities Revenue | |||||||
(AAC East LLC Project - Green Bonds) | |||||||
Series A 144A 7.00% 5/1/39 (AMT) # | 900,000 | 883,800 | |||||
(Jasper Pellets, LLC Project - Green Bonds) | |||||||
Series A 144A 7.00% 11/1/38 (AMT) # | 1,250,000 | 1,119,075 | |||||
St. John Baptist Parish, Louisiana | |||||||
(Marathon Oil Corporation Project) | |||||||
Series B-2 2.125% 6/1/37 ● | 2,250,000 | 2,342,273 | |||||
Tobacco Securitization Authority of Southern California | |||||||
(Capital Appreciation-2nd Subordinate Lien) | |||||||
Series C 0.511% 6/1/46 ^ | 9,040,000 | 1,902,107 | |||||
(Capital Appreciation-3rd Subordinate Lien) | |||||||
Series D 0.288% 6/1/46 ^ | 1,490,000 | 265,160 | |||||
TSASC, New York | |||||||
Series A 5.00% 6/1/30 | 475,000 | 577,268 | |||||
Series A 5.00% 6/1/31 | 475,000 | 575,529 | |||||
Series A 5.00% 6/1/41 | 1,000,000 | 1,173,940 | |||||
Virginia Tobacco Settlement Financing Corporation | |||||||
(Capital Appreciation Asset-Backed) | |||||||
Series B 5.20% 6/1/46 ● | 1,250,000 | 1,250,987 | |||||
Series C 2.388% 6/1/47 ^ | 52,780,000 | 12,955,379 | |||||
Series D 2.161% 6/1/47 ^ | 6,955,000 | 1,583,793 | |||||
146,933,616 | |||||||
Education Revenue Bonds – 6.27% | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(American Charter Schools Foundation Project) | |||||||
144A 6.00% 7/1/37 # | 1,420,000 | 1,755,745 | |||||
144A 6.00% 7/1/47 # | 1,385,000 | 1,685,005 | |||||
(Empower College Prep Project) | |||||||
144A 6.00% 7/1/49 # | 875,000 | 969,517 |
51
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(Macombs Facility Project) | |||||||
Series A 4.00% 7/1/61 | 2,000,000 | $ | 2,263,620 | ||||
(Odyssey Preparatory Academy Project) | |||||||
Series A 144A 5.50% 7/1/52 # | 875,000 | 952,586 | |||||
Bucks County, Pennsylvania Industrial Development Authority | |||||||
Revenue | |||||||
(School Lane Charter School Project) | |||||||
5.125% 3/15/36 | 2,000,000 | 2,270,080 | |||||
California Municipal Finance Authority | |||||||
Series A 144A 5.50% 6/1/53 # | 1,000,000 | 1,121,550 | |||||
(Creative Center of Los Altos Project - Pinewood School & | |||||||
Oakwood School) | |||||||
Series B 144A 4.50% 11/1/46 # | 500,000 | 522,210 | |||||
California School Finance Authority | |||||||
(View Park Elementary & Middle Schools) | |||||||
Series A 4.75% 10/1/24 | 270,000 | 286,459 | |||||
Series A 5.875% 10/1/44 | 300,000 | 332,847 | |||||
California State University | |||||||
(Systemwide) | |||||||
Series A 5.00% 11/1/31 | 2,000,000 | 2,479,540 | |||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(California Baptist University) | |||||||
Series A 6.125% 11/1/33 | 2,215,000 | 2,460,400 | |||||
(Green Dot Public Schools - Animo Inglewood Charter High | |||||||
School Project) | |||||||
Series A 7.25% 8/1/41 | 500,000 | 502,350 | |||||
Capital Trust Agency, Florida Revenue | |||||||
(Liza Jackson Preparatory School Project) | |||||||
Series A 5.00% 8/1/40 | 300,000 | 367,791 | |||||
Series A 5.00% 8/1/55 | 800,000 | 961,704 | |||||
(University Bridge, LLC Student Housing Project) | |||||||
Series A 144A 5.25% 12/1/43 # | 2,000,000 | 2,371,160 | |||||
District of Columbia Revenue | |||||||
(KIPP DC Issue) | |||||||
4.00% 7/1/39 | 1,275,000 | 1,465,358 | |||||
4.00% 7/1/44 | 740,000 | 840,129 | |||||
Fulton County, Georgia Development Authority Revenue | |||||||
(Georgia Institute of Technology) | |||||||
5.00% 6/15/44 | 3,100,000 | 3,887,865 |
52
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Idaho Housing & Finance Association | |||||||
(Anser Of Idaho, Inc. Project) | |||||||
Series A 4.00% 5/1/28 | 230,000 | $ | 269,698 | ||||
Series A 4.00% 5/1/30 | 250,000 | 299,868 | |||||
(Sage International School of Boise Project) | |||||||
Series A 4.00% 5/1/29 | 205,000 | 244,368 | |||||
Series A 4.00% 5/1/30 | 160,000 | 192,925 | |||||
Series A 4.00% 5/1/35 | 450,000 | 533,380 | |||||
Series A 4.00% 5/1/40 | 1,330,000 | 1,557,350 | |||||
Series A 4.00% 5/1/50 | 1,500,000 | 1,728,195 | |||||
Illinois Finance Authority Revenue | |||||||
(University of Illinois at Chicago) | |||||||
Series A 5.00% 2/15/26 | 400,000 | 464,200 | |||||
Series A 5.00% 2/15/27 | 200,000 | 237,670 | |||||
Series A 5.00% 2/15/29 | 400,000 | 475,924 | |||||
Series A 5.00% 2/15/31 | 365,000 | 430,649 | |||||
Maricopa County, Arizona Industrial Development Authority | |||||||
Revenue | |||||||
(Arizona Autism Charter Schools Project) | |||||||
Series A 144A 5.00% 7/1/40 # | 250,000 | 293,025 | |||||
Series A 144A 5.00% 7/1/50 # | 175,000 | 202,029 | |||||
(Highland Prep Project) | |||||||
Series A 4.00% 7/1/29 | 315,000 | 381,197 | |||||
Series A 4.00% 7/1/30 | 330,000 | 403,781 | |||||
Series A 4.00% 7/1/31 | 345,000 | 427,465 | |||||
Series A 4.00% 7/1/32 | 360,000 | 443,207 | |||||
Series A 4.00% 7/1/33 | 375,000 | 458,381 | |||||
Series A 4.00% 7/1/34 | 390,000 | 474,497 | |||||
Series A 4.00% 7/1/35 | 405,000 | 491,216 | |||||
Series A 4.00% 7/1/36 | 425,000 | 512,805 | |||||
Series A 4.00% 7/1/37 | 440,000 | 527,807 | |||||
Series A 4.00% 7/1/38 | 460,000 | 549,369 | |||||
Series A 4.00% 7/1/39 | 480,000 | 571,618 | |||||
Series A 4.00% 7/1/40 | 500,000 | 593,010 | |||||
Series A 4.00% 7/1/41 | 520,000 | 613,371 | |||||
Series A 4.00% 7/1/46 | 740,000 | 860,332 | |||||
Massachusetts Development Finance Agency Revenue | |||||||
(Harvard University) | |||||||
Series A 5.00% 7/15/40 | 5,000,000 | 7,333,150 | |||||
Massachusetts School Building Authority | |||||||
Series C 5.00% 8/15/37 | 2,500,000 | 2,933,525 |
53
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Miami-Dade County, Florida Educational Facilities Authority | |||||||
(University of Miami) | |||||||
Series A 5.00% 4/1/30 | 520,000 | $ | 598,458 | ||||
Series A 5.00% 4/1/31 | 1,090,000 | 1,253,162 | |||||
New York State Dormitory Authority Revenue | |||||||
(New York University) | |||||||
Series A 5.75% 7/1/27 (NATL) | 8,800,000 | 10,394,736 | |||||
(Touro College & University System) | |||||||
Series A 5.25% 1/1/34 | 1,335,000 | 1,476,724 | |||||
Newark, Texas Higher Education Finance | |||||||
(Village Tech Schools) | |||||||
Series A 5.125% 8/15/47 | 1,250,000 | 1,262,513 | |||||
Oregon State Facilities Authority Revenue | |||||||
(Metro East Web Academy Project) | |||||||
Series A 144A 5.00% 6/15/39 # | 500,000 | 550,735 | |||||
Series A 144A 5.00% 6/15/49 # | 500,000 | 545,475 | |||||
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 | 429,495 | |||||
Series A 5.00% 7/1/32 | 235,000 | 285,650 | |||||
Pima County, Arizona Industrial Development Authority | |||||||
Education Revenue | |||||||
(Facility American Leadership Academy Project) | |||||||
144A 5.00% 6/15/47 # | 745,000 | 756,279 | |||||
South Carolina Jobs - Economic Development Authority | |||||||
Educational Facilities Revenue | |||||||
(High Point Academy Project) | |||||||
Series A 144A 5.75% 6/15/39 # | 1,345,000 | 1,575,398 | |||||
University of Texas Permanent University Fund | |||||||
Series B 5.00% 7/1/27 | 3,715,000 | 4,206,457 | |||||
University of Washington | |||||||
Series A 4.00% 4/1/35 | 1,000,000 | 1,244,540 | |||||
76,579,550 | |||||||
Electric Revenue Bonds – 5.07% | |||||||
Guam Power Authority Revenue | |||||||
Series A 5.00% 10/1/40 | 1,000,000 | 1,154,530 | |||||
Long Island, New York Power Authority | |||||||
5.00% 9/1/33 | 250,000 | 309,382 | |||||
5.00% 9/1/35 | 1,000,000 | 1,240,850 | |||||
Series A 5.00% 9/1/34 | 500,000 | 661,795 |
54
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Electric Revenue Bonds (continued) | |||||||
Municipal Electric Authority of Georgia | |||||||
(Plant Vogtle Units 3&4 Project) | |||||||
Series A 5.00% 1/1/39 | 6,250,000 | $ | 7,680,625 | ||||
New York State Utility Debt Securitization Authority | |||||||
(Restructuring Bonds) | |||||||
5.00% 12/15/33 | 1,500,000 | 1,785,375 | |||||
Piedmont Municipal Power Agency, South Carolina | |||||||
Series D 5.75% 1/1/34 (AGC) | 5,000,000 | 5,020,550 | |||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series CCC 5.25% 7/1/27 ‡ | 1,520,000 | 1,495,300 | |||||
Series TT 5.00% 7/1/32 ‡ | 1,555,000 | 1,523,900 | |||||
Series WW 5.25% 7/1/33 ‡ | 1,015,000 | 998,506 | |||||
Series WW 5.50% 7/1/17 ‡ | 2,200,000 | 2,136,750 | |||||
Series WW 5.50% 7/1/19 ‡ | 1,710,000 | 1,665,113 | |||||
Series XX 5.25% 7/1/40 ‡ | 4,630,000 | 4,554,762 | |||||
Series ZZ 5.00% 7/1/19 ‡ | 2,990,000 | 2,896,563 | |||||
Salt River, Arizona Project Agricultural Improvement & Power | |||||||
District Electric Systems Revenue | |||||||
Series A 5.00% 12/1/35 | 4,000,000 | 4,648,640 | |||||
Series A 5.00% 1/1/38 | 5,000,000 | 6,035,250 | |||||
(Salt River Project Electric System) | |||||||
5.00% 1/1/30 | 5,000,000 | 6,294,950 | |||||
Utility Debt Securitization Authority, New York | |||||||
(Restructuring Bonds) | |||||||
5.00% 12/15/37 | 10,000,000 | 11,837,000 | |||||
61,939,841 | |||||||
Healthcare Revenue Bonds – 8.91% | |||||||
Apple Valley, Minnesota | |||||||
(Minnesota Senior Living LLC Project) | |||||||
Series B 5.25% 1/1/37 | 915,000 | 804,944 | |||||
Arizona Health Facilities Authority | |||||||
(Scottsdale Lincoln Hospital Project) | |||||||
5.00% 12/1/30 | 5,000,000 | 5,715,000 | |||||
California Health Facilities Financing Authority | |||||||
(Children’s Hospital of Orange County) | |||||||
Series A 2.125% 11/1/41 | 5,000,000 | 4,890,650 | |||||
Series A 3.00% 11/1/39 | 2,750,000 | 3,059,100 | |||||
(Kaiser Permanente) | |||||||
Series A-1 5.00% 11/1/27 | 4,100,000 | 5,201,711 |
55
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
California Health Facilities Financing Authority Senior Living | |||||||
Revenue | |||||||
(Lucile Salter Packard Children’s Hospital At Stanford) | |||||||
Series A 5.00% 5/15/23 | 25,000 | $ | 26,114 | ||||
California Statewide Communities Development Authority | |||||||
(Loma Linda University Medical Center) | |||||||
Series A 144A 5.00% 12/1/41 # | 1,685,000 | 1,898,085 | |||||
Series A 5.25% 12/1/34 | 2,790,000 | 3,171,560 | |||||
Capital Trust Agency, Florida | |||||||
(Tuscan Gardens Senior Living Center) | |||||||
Series A 7.00% 4/1/35 | 1,630,000 | 912,996 | |||||
Colorado Health Facilities Authority Revenue | |||||||
(CommonSpirit Health) | |||||||
Series A 4.00% 8/1/37 | 500,000 | 586,095 | |||||
Series A 4.00% 8/1/38 | 1,500,000 | 1,753,080 | |||||
Series A-2 5.00% 8/1/37 | 1,105,000 | 1,392,742 | |||||
County of Hamilton, Ohio Hospital Facilities Revenue | |||||||
(Cincinnati Children’s Hospital Medical Center) | |||||||
Series CC 5.00% 11/15/49 | 7,510,000 | 11,780,787 | |||||
Cumberland County, Pennsylvania Municipal Authority Revenue | |||||||
(Asbury Pennsylvania Obligated Group) | |||||||
5.00% 1/1/45 | 1,000,000 | 1,105,570 | |||||
Cuyahoga County, Ohio | |||||||
(The Metrohealth System) | |||||||
5.00% 2/15/37 | 1,000,000 | 1,186,720 | |||||
Escambia County, Health Facilities Authority Revenue | |||||||
(Baptist Health Care Corporation Obligated Group) | |||||||
Series A 4.00% 8/15/50 | 2,605,000 | 2,960,035 | |||||
Glendale, Arizona Industrial Development Authority Revenue | |||||||
(Glencroft Retirement Community Project) | |||||||
5.25% 11/15/46 | 875,000 | 900,988 | |||||
(Royal Oaks Life Care Community) | |||||||
4.00% 5/15/28 | 1,000,000 | 1,083,760 | |||||
4.00% 5/15/30 | 1,385,000 | 1,493,695 | |||||
4.00% 5/15/31 | 500,000 | 537,990 | |||||
(The Terraces of Phoenix Project) | |||||||
Series A 5.00% 7/1/48 | 975,000 | 1,040,032 | |||||
Illinois Finance Authority Revenue | |||||||
(The Admiral at the Lake Project) | |||||||
5.50% 5/15/54 | 875,000 | 930,895 |
56
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Iowa Finance Authority Senior Housing Revenue Bonds | |||||||
(PHS Council Bluffs, Inc. Project) | |||||||
5.00% 8/1/33 | 500,000 | $ | 525,110 | ||||
Kalispell, Montana | |||||||
(Immanuel Lutheran Corporation Project) | |||||||
Series A 5.25% 5/15/32 | 435,000 | 483,820 | |||||
Lancaster County, Pennsylvania Hospital Authority | |||||||
(Brethren Village Project) | |||||||
5.00% 7/1/31 | 440,000 | 510,189 | |||||
5.00% 7/1/32 | 440,000 | 508,618 | |||||
(St. Anne’s Retirement Community, Incorporated Project) | |||||||
5.00% 4/1/27 | 1,425,000 | 1,452,103 | |||||
(University of Pennsylvania Health System Obligation) | |||||||
Series A 5.00% 8/15/33 | 2,430,000 | 2,934,079 | |||||
Maricopa County, Arizona Industrial Development Authority | |||||||
Revenue | |||||||
(Banner Health Obligation Group) | |||||||
Series A 5.00% 1/1/32 | 3,000,000 | 3,653,610 | |||||
(Christian Care Surprise, Inc. Project) | |||||||
144A 5.75% 1/1/36 # | 1,540,000 | 1,616,553 | |||||
Maryland Health & Higher Educational Facilities Authority | |||||||
Revenue | |||||||
(Adventist Healthcare Obligated) | |||||||
Series A 5.50% 1/1/36 | 2,000,000 | 2,430,300 | |||||
Massachusetts Development Finance Agency Revenue | |||||||
Series A-2 4.00% 7/1/41 | 875,000 | 1,032,133 | |||||
Minneapolis, Minnesota Health Care System Revenue | |||||||
(Fairview Health Services) | |||||||
Series A 5.00% 11/15/35 | 1,500,000 | 1,885,380 | |||||
Monroe County, New York Industrial Development Revenue | |||||||
(Rochester Regional Health Project) | |||||||
Series D 3.00% 12/1/40 | 1,000,000 | 1,061,860 | |||||
Series D 4.00% 12/1/38 | 1,450,000 | 1,723,151 | |||||
Montgomery County, Pennsylvania Industrial Development | |||||||
Authority Revenue | |||||||
(Albert Einstein Healthcare) | |||||||
Series A 5.25% 1/15/45 | 2,500,000 | 2,812,225 | |||||
Moon, Pennsylvania Industrial Development Authority | |||||||
(Baptist Homes Society Obligation) | |||||||
5.625% 7/1/30 | 2,440,000 | 2,649,767 |
57
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
National Finance Authority Revenue, New Hampshire | |||||||
(Springpoint Senior Living Project) | |||||||
4.00% 1/1/51 | 1,330,000 | $ | 1,457,042 | ||||
(The Vista Project) | |||||||
Series A 144A 5.25% 7/1/39 # | 1,000,000 | 1,062,950 | |||||
New York State Dormitory Authority Revenue | |||||||
(Orange Regional Medical Center) | |||||||
144A 5.00% 12/1/31 # | 1,000,000 | 1,212,800 | |||||
144A 5.00% 12/1/32 # | 1,100,000 | 1,332,441 | |||||
144A 5.00% 12/1/33 # | 1,000,000 | 1,209,700 | |||||
Northampton County, Philadelphia, Pennsylvania Industrial | |||||||
Development Authority Revenue | |||||||
(MorningStar Senior Living Project) | |||||||
5.00% 7/1/32 | 1,275,000 | 1,304,822 | |||||
5.00% 11/1/44 | 1,000,000 | 1,146,760 | |||||
Oklahoma Development Finance Authority Health System | |||||||
Revenue | |||||||
(OU Medicine Project) | |||||||
Series B 5.25% 8/15/43 | 1,790,000 | 2,200,340 | |||||
Pennsylvania Economic Development Financing Authority First | |||||||
Mortgage Revenue | |||||||
(Tapestry Moon Senior Housing Project) | |||||||
Series A 144A 6.50% 12/1/38 #, ‡ | 1,000,000 | 590,000 | |||||
Series A 144A 6.75% 12/1/53 #, ‡ | 875,000 | 516,250 | |||||
Prince George’s County, Maryland | |||||||
(Collington Episcopal Life Care Community) | |||||||
5.00% 4/1/31 | 2,000,000 | 2,165,580 | |||||
Public Finance Authority, Wisconsin Senior Living Revenue | |||||||
(Mary’s Woods at Marylhurst Project) | |||||||
144A 5.00% 5/15/29 # | 500,000 | 552,670 | |||||
Seminole County, Florida Industrial Development Authority | |||||||
(Legacy Pointe at UCF Project) | |||||||
Series A 5.25% 11/15/39 | 5,340,000 | 5,952,498 | |||||
Series B-1 4.25% 11/15/26 | 3,000,000 | 3,034,980 | |||||
Tempe, Arizona Industrial Development Authority | |||||||
(Mirabella at ASU Project) | |||||||
Series A 144A 6.00% 10/1/37 # | 1,200,000 | 1,348,308 | |||||
Virginia Small Business Financing Authority | |||||||
(Lifespire of Virginia) | |||||||
4.00% 12/1/36 | 1,210,000 | 1,386,962 | |||||
4.00% 12/1/41 | 2,500,000 | 2,841,050 |
58
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Washington State Housing Finance Commission | |||||||
(Heron’s Key Senior Living) | |||||||
Series A 144A 7.00% 7/1/45 # | 800,000 | $ | 887,992 | ||||
Wisconsin Health & Educational Facilities Authority Revenue | |||||||
(St. Camillus Health System) | |||||||
Series A 5.00% 11/1/39 | 815,000 | 891,064 | |||||
108,805,656 | |||||||
Lease Revenue Bonds – 6.33% | |||||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(Lancer Plaza Project) | |||||||
5.125% 11/1/23 | 220,000 | 232,073 | |||||
5.625% 11/1/33 | 1,000,000 | 1,093,990 | |||||
Hudson Yards New York Infrastructure Revenue | |||||||
Series A 4.00% 2/15/44 | 2,875,000 | 3,223,450 | |||||
Los Angeles County, California | |||||||
(Disney Concert Hall Parking) | |||||||
5.00% 3/1/23 | 2,395,000 | 2,561,692 | |||||
Maryland Stadium Authority | |||||||
(Baltimore City Public Schools Construction) | |||||||
Series A 5.00% 5/1/50 | 5,000,000 | 7,424,150 | |||||
Metropolitan Pier & Exposition Authority, Illinois | |||||||
(McCormick Place Expansion Project) | |||||||
Series A 4.00% 12/15/42 | 13,500,000 | 15,571,980 | |||||
Series B 2.65% 12/15/54 (BAM) ^ | 8,000,000 | 3,319,200 | |||||
Series B 2.88% 12/15/54 ^ | 16,500,000 | 6,347,880 | |||||
New Jersey State Economic Development Authority | |||||||
(NJ Transit Transportation Project) | |||||||
Series A 4.00% 11/1/38 | 1,000,000 | 1,164,750 | |||||
Series A 4.00% 11/1/39 | 1,000,000 | 1,160,960 | |||||
New Jersey State Transportation Trust Fund Authority | |||||||
Series AA 4.00% 6/15/45 | 5,000,000 | 5,812,250 | |||||
(Highway Reimbursement) | |||||||
Series A 5.00% 6/15/30 | 2,415,000 | 2,872,063 | |||||
(Transportation System Bonds) | |||||||
Series A 5.00% 12/15/25 | 5,000,000 | 5,948,050 | |||||
New York City, New York Transitional Finance Authority Building | |||||||
Aid Revenue | |||||||
Series S-1 5.00% 7/15/31 | 5,000,000 | 5,777,350 |
59
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Lease Revenue Bonds (continued) | |||||||
New York State Dormitory Authority Revenue | |||||||
(Health Facilities Improvement Program) | |||||||
Series 1 5.00% 1/15/28 | 750,000 | $ | 941,850 | ||||
Series 1 5.00% 1/15/29 | 3,100,000 | 3,902,466 | |||||
New York State Thruway Authority Revenue | |||||||
Series A-1 4.00% 3/15/52 | 8,500,000 | 9,993,025 | |||||
77,347,179 | |||||||
Local General Obligation Bonds – 4.67% | |||||||
Chesterfield County, Virginia | |||||||
Series B 5.00% 1/1/22 | 4,070,000 | 4,136,545 | |||||
Chicago, Illinois | |||||||
Series A 5.25% 1/1/29 | 640,000 | 702,573 | |||||
Series A 5.50% 1/1/35 | 1,980,000 | 2,514,976 | |||||
Series C 5.00% 1/1/26 | 1,280,000 | 1,508,608 | |||||
Chicago, Illinois Board of Education | |||||||
5.00% 4/1/35 | 825,000 | 985,941 | |||||
5.00% 4/1/36 | 320,000 | 381,834 | |||||
(Dedicated Revenues) | |||||||
Series A 5.00% 12/1/40 | 2,000,000 | 2,539,120 | |||||
Series A 5.00% 12/1/41 | 1,225,000 | 1,237,777 | |||||
Series C 5.00% 12/1/34 | 2,160,000 | 2,627,877 | |||||
Series D 5.00% 12/1/31 | 2,160,000 | 2,643,278 | |||||
City & County of San Francisco, California | |||||||
Series D-1 4.00% 6/15/39 | 1,330,000 | 1,576,210 | |||||
Series D-1 4.00% 6/15/40 | 1,385,000 | 1,631,571 | |||||
Series D-1 4.00% 6/15/41 | 1,440,000 | 1,692,691 | |||||
New York City, New York | |||||||
Fiscal 2021 Series C 5.00% 8/1/33 | 2,000,000 | 2,625,620 | |||||
Fiscal 2021 Series C 5.00% 8/1/43 | 3,500,000 | 4,473,000 | |||||
Series D-1 5.00% 10/1/30 | 2,260,000 | 2,268,724 | |||||
Series E 5.00% 8/1/23 | 3,685,000 | 4,028,663 | |||||
Series F-1 5.00% 6/1/34 | 5,000,000 | 5,835,100 | |||||
Subseries D-1 4.00% 12/1/42 | 4,300,000 | 5,013,714 | |||||
San Francisco, California Bay Area Rapid Transit District | |||||||
(Election 2004) | |||||||
Series D 5.00% 8/1/31 | 4,000,000 | 4,704,600 | |||||
Wake County, North Carolina | |||||||
Series A 5.00% 3/1/27 | 3,200,000 | 3,986,816 | |||||
57,115,238 |
60
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 5.20% | |||||||
Atlanta, Georgia Water & Wastewater Revenue | |||||||
5.00% 11/1/35-25 § | 5,000,000 | $ | 5,861,600 | ||||
California State | |||||||
(Various Purpose) | |||||||
5.25% 9/1/28-21 § | 2,265,000 | 2,265,000 | |||||
California State Department of Water Resources | |||||||
(Water System) | |||||||
Series AS 5.00% 12/1/29-24 § | 15,000 | 17,303 | |||||
Unrefunded Series AS 5.00% 12/1/29-24 § | 2,680,000 | 3,100,867 | |||||
Denton Independent School District, Texas | |||||||
(School Building) | |||||||
Series A 5.00% 8/15/40-25 (PSF) § | 4,000,000 | 4,732,960 | |||||
East Hempfield Township, Pennsylvania Industrial Development | |||||||
Authority | |||||||
(Student Services - Student Housing Project at Millersville | |||||||
University) | |||||||
5.00% 7/1/39-24 § | 875,000 | 991,620 | |||||
5.00% 7/1/46-24 § | 1,425,000 | 1,614,924 | |||||
Fort Worth, Texas Independent School District | |||||||
(School Building) | |||||||
5.00% 2/15/27-24 (PSF) § | 2,000,000 | 2,237,380 | |||||
Golden State, California Tobacco Securitization Corporate | |||||||
Settlement Revenue | |||||||
(Asset-Backed Enhanced) | |||||||
Series A 5.00% 6/1/35-25 § | 3,000,000 | 3,533,580 | |||||
Louisiana State Highway Improvement Revenue | |||||||
Series A 5.00% 6/15/29-24 § | 5,195,000 | 5,893,675 | |||||
New Jersey State Turnpike Authority Turnpike Revenue | |||||||
Series A 5.00% 1/1/30-22 § | 5,000,000 | 5,203,300 | |||||
Series A 5.00% 1/1/43-22 § | 1,860,000 | 1,935,627 | |||||
New York City, New York | |||||||
Series D-1 5.00% 10/1/30-21 § | 1,740,000 | 1,746,873 | |||||
Pennsylvania State Turnpike Commission Revenue | |||||||
Series C 5.00% 12/1/43-23 § | 4,555,000 | 5,050,402 | |||||
Philadelphia, Pennsylvania Water & Waste Water Revenue | |||||||
5.00% 11/1/28-22 § | 5,000,000 | 5,281,250 | |||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | |||||||
(AFCO Investors II Portfolio) | |||||||
144A 5.00% 10/1/23-22 (AMT) #, § | 1,135,000 | 1,175,247 | |||||
Sacramento, California Water Revenue | |||||||
5.00% 9/1/26-23 § | 3,160,000 | 3,467,500 |
61
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | |||||||
Southwestern Illinois Development Authority | |||||||
(Memorial Group) | |||||||
7.125% 11/1/30-23 § | 2,190,000 | $ | 2,514,186 | ||||
Texas State | |||||||
(Transportation Commission Highway Improvement) | |||||||
5.00% 4/1/29-24 § | 3,000,000 | 3,374,580 | |||||
Virginia Commonwealth Transportation Board | |||||||
(Gans-Garvee) | |||||||
5.00% 3/15/24-23 § | 3,250,000 | 3,492,775 | |||||
63,490,649 | |||||||
Special Tax Revenue Bonds – 18.94% | |||||||
Allentown, Pennsylvania Neighborhood Improvement Zone | |||||||
Development Authority Revenue | |||||||
(City Center Project) | |||||||
144A 5.375% 5/1/42 # | 2,900,000 | 3,434,151 | |||||
(Forward Delivery) | |||||||
5.00% 5/1/24 | 170,000 | 185,917 | |||||
5.00% 5/1/25 | 500,000 | 564,885 | |||||
5.00% 5/1/26 | 500,000 | 580,265 | |||||
5.00% 5/1/27 | 550,000 | 653,367 | |||||
5.00% 5/1/29 | 600,000 | 741,264 | |||||
5.00% 5/1/31 | 670,000 | 853,908 | |||||
5.00% 5/1/33 | 765,000 | 984,524 | |||||
5.00% 5/1/34 | 750,000 | 961,523 | |||||
Bullhead City, Arizona Excise Taxes Revenue | |||||||
2.30% 7/1/41 | 2,000,000 | 1,999,780 | |||||
2.55% 7/1/46 | 7,000,000 | 7,033,040 | |||||
Camden County, New Jersey Improvement Authority Revenue | |||||||
(County Capital Program) | |||||||
Series A 5.00% 1/15/40 | 5,000,000 | 5,696,000 | |||||
Celebration Pointe, Florida Community Development District | |||||||
4.75% 5/1/24 | 290,000 | 309,955 | |||||
5.00% 5/1/34 | 830,000 | 875,426 | |||||
Connecticut State Transportation Infrastructure | |||||||
Series B 5.00% 10/1/30 | 3,375,000 | 4,318,582 | |||||
Dallas, Texas Convention Center Hotel Development Revenue | |||||||
Series A 5.00% 1/1/24 | 3,420,000 | 3,425,438 | |||||
Series A 5.25% 1/1/23 | 5,375,000 | 5,384,567 | |||||
Denver, Colorado Convention Center Hotel Authority | |||||||
5.00% 12/1/26 | 2,500,000 | 3,023,800 | |||||
5.00% 12/1/29 | 600,000 | 713,328 |
62
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
Denver, Colorado Convention Center Hotel Authority | |||||||
5.00% 12/1/31 | 900,000 | $ | 1,061,280 | ||||
5.00% 12/1/32 | 1,800,000 | 2,117,178 | |||||
5.00% 12/1/34 | 1,500,000 | 1,753,875 | |||||
5.00% 12/1/35 | 1,200,000 | 1,401,288 | |||||
5.00% 12/1/36 | 900,000 | 1,049,067 | |||||
Ernest N Morail-New Orleans, Louisiana Exhibition Hall Authority | |||||||
Special Tax Revenue | |||||||
5.00% 7/15/26 | 2,330,000 | 2,425,250 | |||||
GDB Debt Recovery Authority, Guam | |||||||
(Taxable) | |||||||
7.50% 8/20/40 | 11,433,840 | 10,747,810 | |||||
Harris County-Houston, Texas Sports Authority | |||||||
(Senior Lien) | |||||||
Series A 5.00% 11/15/30 | 1,805,000 | 2,017,954 | |||||
Illinois State, Sales Tax Revenue | |||||||
(Junior Obligation) | |||||||
Series A 4.00% 6/15/29 | 2,250,000 | 2,742,075 | |||||
Series A 4.00% 6/15/30 | 10,000,000 | 12,374,700 | |||||
Series A 4.00% 6/15/31 | 10,000,000 | 12,555,500 | |||||
Kansas City, Missouri Land Clearance Redevelopment Authority | |||||||
Revenue | |||||||
(Convention Center Hotel Project - TIF Financing) | |||||||
Series B 144A 5.00% 2/1/40 # | 200,000 | 218,294 | |||||
Massachusetts School Building Authority | |||||||
Series C 5.00% 8/15/29 | 1,630,000 | 1,921,933 | |||||
Metropolitan Transportation Authority Revenue, New York | |||||||
(Climate Bond Certified) | |||||||
Series B-2 5.00% 11/15/36 | 5,000,000 | 6,031,950 | |||||
New Jersey Economic Development Authority Revenue | |||||||
(Cigarette Tax) | |||||||
5.00% 6/15/22 | 1,750,000 | 1,811,023 | |||||
5.00% 6/15/23 | 1,250,000 | 1,293,500 | |||||
New York City, New York Transitional Finance Authority Building | |||||||
Aid Revenue | |||||||
Subordinate Subseries S-3A 5.00% 7/15/28 | 4,400,000 | 5,657,036 | |||||
New York City, New York Transitional Finance Authority Future | |||||||
Tax Secured | |||||||
Subseries A-1 5.00% 11/1/23 | 2,865,000 | 3,165,539 | |||||
Subseries B-1 5.00% 8/1/42 | 5,000,000 | 5,630,200 | |||||
Subseries C 5.00% 11/1/27 | 4,150,000 | 4,671,530 | |||||
Subseries D-1 5.00% 11/1/38 | 7,500,000 | 7,560,300 |
63
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
New York City, New York Transitional Finance Authority Future | |||||||
Tax Secured | |||||||
Subseries E-1 5.00% 2/1/26 | 4,020,000 | $ | 4,101,244 | ||||
Subseries E-1 5.00% 2/1/35 | 5,000,000 | 6,082,100 | |||||
New York State Dormitory Authority Revenue | |||||||
Series A 5.00% 3/15/31 | 1,000,000 | 1,157,060 | |||||
(General Purpose) | |||||||
Series B 5.00% 3/15/35 | 5,000,000 | 5,128,650 | |||||
Series D 5.00% 2/15/37 | 5,000,000 | 5,108,450 | |||||
New York State Urban Development Revenue | |||||||
(General Purpose) | |||||||
Series B 5.00% 3/15/35 | 5,000,000 | 5,869,850 | |||||
Series C 5.00% 3/15/33 | 3,000,000 | 3,985,920 | |||||
Series E 4.00% 3/15/38 | 8,000,000 | 9,504,320 | |||||
Series E 5.00% 3/15/33 | 2,000,000 | 2,622,660 | |||||
Orange County, California Local Transportation Authority | |||||||
5.00% 2/15/39 | 4,000,000 | 5,075,400 | |||||
Public Finance Authority, Wisconsin | |||||||
(American Dream @ Meadowlands Project) | |||||||
144A 7.00% 12/1/50 # | 1,010,000 | 1,161,500 | |||||
Puerto Rico Sales Tax Financing Revenue | |||||||
(Restructured) | |||||||
Series A-1 4.55% 7/1/40 | 6,015,000 | 6,921,581 | |||||
Series A-1 4.75% 7/1/53 | 7,890,000 | 9,029,316 | |||||
Series A-1 5.00% 7/1/58 | 3,820,000 | 4,422,987 | |||||
Series A-2 4.329% 7/1/40 | 18,625,000 | 21,172,528 | |||||
Series A-2 4.329% 7/1/40 | 5,636,000 | 6,406,892 | |||||
Series A-2 4.784% 7/1/58 | 1,460,000 | 1,670,809 | |||||
Richmond Heights, Missouri Tax Increment & Transaction Sales | |||||||
Tax Revenue Refunding & Improvement | |||||||
(Francis Place Redevelopment Project) | |||||||
5.625% 11/1/25 | 715,000 | 715,701 | |||||
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 | 1,220,000 | 1,240,301 | |||||
231,324,271 | |||||||
State General Obligation Bonds – 16.58% | |||||||
California State | |||||||
(School Facilities) | |||||||
5.00% 11/1/30 | 5,000,000 | 5,511,850 |
64
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
California State | |||||||
(Various Purpose) | |||||||
4.00% 3/1/36 | 1,000,000 | $ | 1,218,530 | ||||
5.00% 8/1/26 | 3,120,000 | 3,817,570 | |||||
5.00% 10/1/26 | 2,500,000 | 3,074,825 | |||||
5.00% 8/1/28 | 3,000,000 | 3,874,200 | |||||
5.00% 9/1/30 | 1,715,000 | 2,087,807 | |||||
5.00% 4/1/32 | 1,410,000 | 1,965,357 | |||||
5.00% 9/1/32 | 4,100,000 | 4,982,238 | |||||
5.00% 8/1/33 | 5,000,000 | 5,770,050 | |||||
5.00% 9/1/35 | 8,000,000 | 9,690,720 | |||||
5.25% 9/1/28 | 5,485,000 | 5,494,379 | |||||
5.25% 9/1/30 | 5,000,000 | 5,499,550 | |||||
Series C 5.00% 9/1/30 | 5,985,000 | 7,072,235 | |||||
Commonwealth of Massachusetts | |||||||
Series A 5.00% 1/1/35 | 7,500,000 | 9,594,750 | |||||
Series A 5.00% 7/1/37 | 5,000,000 | 5,830,150 | |||||
Commonwealth of Pennsylvania | |||||||
5.00% 9/15/26 | 2,500,000 | 3,060,800 | |||||
5.00% 7/15/28 | 3,870,000 | 4,971,209 | |||||
Commonwealth of Puerto Rico | |||||||
(Public Improvement) | |||||||
Series A 5.00% 7/1/24 ‡ | 1,070,000 | 1,007,137 | |||||
Series A 5.00% 7/1/31 ‡ | 1,100,000 | 1,023,000 | |||||
Series A 5.00% 7/1/34 ‡ | 2,900,000 | 2,729,625 | |||||
Series A 5.125% 7/1/37 ‡ | 9,840,000 | 8,634,600 | |||||
Series A 5.25% 7/1/27 ‡ | 3,410,000 | 3,218,187 | |||||
Series A 5.25% 7/1/34 ‡ | 970,000 | 920,288 | |||||
Series A 5.50% 7/1/39 ‡ | 5,550,000 | 4,995,000 | |||||
Series A 8.00% 7/1/35 ‡ | 6,995,000 | 5,954,494 | |||||
Series B 5.00% 7/1/35 ‡ | 730,000 | 688,025 | |||||
Series C 5.75% 7/1/36 ‡ | 1,215,000 | 1,057,050 | |||||
Connecticut State | |||||||
Series F 5.00% 9/15/27 | 2,790,000 | 3,514,033 | |||||
District of Columbia Revenue | |||||||
Series C 5.00% 6/1/34 | 5,000,000 | 5,616,350 | |||||
Hawaii State | |||||||
Series FW 4.00% 1/1/34 | 3,010,000 | 3,579,853 | |||||
Illinois State | |||||||
5.00% 1/1/28 | 1,630,000 | 1,903,058 | |||||
5.00% 3/1/36 | 960,000 | 981,859 |
65
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
Illinois State | |||||||
5.00% 11/1/36 | 1,965,000 | $ | 2,286,002 | ||||
5.25% 2/1/30 | 2,410,000 | 2,675,678 | |||||
5.25% 2/1/32 | 1,015,000 | 1,123,016 | |||||
5.25% 2/1/33 | 480,000 | 530,472 | |||||
5.50% 5/1/39 | 2,500,000 | 3,222,000 | |||||
Series A 5.00% 3/1/30 | 2,000,000 | 2,569,480 | |||||
Series A 5.00% 3/1/34 | 1,000,000 | 1,286,220 | |||||
Series A 5.00% 3/1/35 | 2,800,000 | 3,590,244 | |||||
Series A 5.125% 12/1/29 | 4,440,000 | 5,436,203 | |||||
Series B 4.00% 11/1/34 | 5,000,000 | 5,815,500 | |||||
Series B 4.00% 10/1/35 | 8,830,000 | 10,395,559 | |||||
Series B 4.00% 11/1/35 | 2,200,000 | 2,552,990 | |||||
Series C 4.00% 10/1/37 | 1,710,000 | 1,999,828 | |||||
Series D 5.00% 11/1/25 | 1,220,000 | 1,433,244 | |||||
Series D 5.00% 11/1/27 | 7,550,000 | 9,301,298 | |||||
New Jersey State | |||||||
Series A 4.00% 6/1/31 | 2,600,000 | 3,250,182 | |||||
Oregon State | |||||||
(Article XI-Q State Projects) | |||||||
Series A 5.00% 5/1/28 | 2,000,000 | 2,569,680 | |||||
Series A 5.00% 5/1/44 | 5,000,000 | 6,305,550 | |||||
Washington State | |||||||
Series R-2015E 5.00% 7/1/31 | 3,000,000 | 3,452,910 | |||||
(Various Purpose) | |||||||
Series 2015-A-1 5.00% 8/1/30 | 3,000,000 | 3,404,280 | |||||
202,539,115 | |||||||
Transportation Revenue Bonds – 16.54% | |||||||
Bay Area, California Toll Authority | |||||||
(San Francisco Bay Area) | |||||||
Series S-7 4.00% 4/1/34 | 1,000,000 | 1,168,540 | |||||
Chicago, Illinois Midway International Airport | |||||||
Series A 5.00% 1/1/28 (AMT) | 1,905,000 | 2,100,415 | |||||
Chicago, Illinois O’Hare International Airport Revenue | |||||||
Series A 5.00% 1/1/37 (AMT) | 5,000,000 | 6,211,150 | |||||
Series B 5.00% 1/1/32 | 1,000,000 | 1,147,030 | |||||
Series B 5.00% 1/1/33 | 1,520,000 | 1,743,486 | |||||
(General-Airport-Senior Lien) | |||||||
Series B 5.00% 1/1/36 | 2,500,000 | 3,143,175 | |||||
Series B 5.00% 1/1/37 | 3,000,000 | 3,762,180 |
66
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Dallas Fort Worth International Airport, Texas | |||||||
Series A 4.00% 11/1/34 | 2,500,000 | $ | 3,086,250 | ||||
Series A 4.00% 11/1/35 | 1,000,000 | 1,231,950 | |||||
Delaware River Port Authority Revenue | |||||||
5.00% 1/1/30 | 350,000 | 388,497 | |||||
Georgia State Road & Tollway Authority Revenue | |||||||
(Managed Lane System) | |||||||
Series A 4.00% 7/15/46 | 5,000,000 | 6,063,350 | |||||
Hillsborough County, Florida Port District | |||||||
(Tampa Port Authority Project) | |||||||
Series B 5.00% 6/1/28 (AMT) | 375,000 | 466,853 | |||||
Kansas City, Missouri Industrial Development Authority Revenue | |||||||
(Kansas City International Airport Terminal Modernization | |||||||
Project) | |||||||
Series D 5.00% 3/1/33 (AMT) | 3,100,000 | 3,991,994 | |||||
Lee County, Florida Airport Revenue | |||||||
5.00% 10/1/33 | 4,305,000 | 5,068,750 | |||||
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 | 1,770,825 | |||||
Miami-Dade County, Florida Aviation Revenue | |||||||
Series B 5.00% 10/1/37 | 5,700,000 | 6,477,081 | |||||
New Jersey State Turnpike Authority Turnpike Revenue | |||||||
Series A 4.00% 1/1/42 | 6,980,000 | 8,334,469 | |||||
Series A 5.00% 1/1/33 | 1,770,000 | 2,155,170 | |||||
Series E 5.00% 1/1/32 | 5,050,000 | 6,351,385 | |||||
New Orleans, Louisiana Aviation Board | |||||||
(North Terminal Project) | |||||||
Series B 5.00% 1/1/32 (AGM) (AMT) | 2,900,000 | 3,313,946 | |||||
Series B 5.00% 1/1/33 (AGM) (AMT) | 2,900,000 | 3,308,784 | |||||
New York State Thruway Authority | |||||||
Series J 5.00% 1/1/27 | 5,705,000 | 6,328,214 | |||||
Series J 5.00% 1/1/32 | 5,000,000 | 5,540,050 | |||||
Series K 5.00% 1/1/31 | 5,000,000 | 5,728,000 | |||||
New York Transportation Development Special Facilities | |||||||
Revenue | |||||||
(Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D | |||||||
Redevelopment Project) | |||||||
4.00% 10/1/30 (AMT) | 1,950,000 | 2,341,131 | |||||
5.00% 1/1/33 (AMT) | 790,000 | 960,450 | |||||
5.00% 10/1/35 (AMT) | 1,125,000 | 1,432,148 |
67
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
New York Transportation Development Special Facilities | |||||||
Revenue | |||||||
(JFK International Air Terminal Project) | |||||||
Series A 5.00% 12/1/33 (AMT) | 1,000,000 | $ | 1,295,990 | ||||
Series A 5.00% 12/1/35 (AMT) | 1,000,000 | 1,285,280 | |||||
Series C 4.00% 12/1/41 | 730,000 | 849,968 | |||||
Oklahoma State Turnpike Authority Revenue | |||||||
Series A 5.00% 1/1/42 | 5,000,000 | 5,841,350 | |||||
Pennsylvania State Turnpike Commission Revenue | |||||||
Series B 5.00% 12/1/30 | 1,170,000 | 1,575,779 | |||||
Series B 5.00% 12/1/31 | 1,750,000 | 2,403,993 | |||||
Series B 5.00% 12/1/45 | 5,000,000 | 5,813,900 | |||||
Series C 5.00% 12/1/43 | 1,445,000 | 1,585,136 | |||||
Subordinate Series A-1 5.00% 12/1/29 | 3,590,000 | 4,117,730 | |||||
Philadelphia, Pennsylvania Airport Revenue | |||||||
Series C 5.00% 7/1/29 (AMT) | 365,000 | 471,452 | |||||
Series C 5.00% 7/1/31 (AMT) | 800,000 | 1,047,728 | |||||
Series C 5.00% 7/1/32 (AMT) | 845,000 | 1,101,196 | |||||
Phoenix, Arizona Civic Improvement Corporation Airport | |||||||
Revenue | |||||||
(Junior Lien) | |||||||
Series A 5.00% 7/1/33 | 3,355,000 | 3,925,014 | |||||
Series B 5.00% 7/1/49 (AMT) | 10,900,000 | 13,462,154 | |||||
Port Authority of New York & New Jersey | |||||||
5.00% 9/15/25 (AMT) | 7,000,000 | 8,251,530 | |||||
5.00% 10/15/29 (AMT) | 3,105,000 | 3,652,070 | |||||
(194th Series) | |||||||
5.00% 10/15/32 | 2,500,000 | 2,952,775 | |||||
Port of Portland Oregon Airport Revenue | |||||||
Series A 4.00% 7/1/50 (AMT) | 2,440,000 | 2,811,319 | |||||
Regional Transportation District, Colorado | |||||||
(Denver Transit Partners Eagle P3 Project) | |||||||
Series B 4.00% 7/15/34 | 1,250,000 | 1,516,100 | |||||
Series B 5.00% 1/15/29 | 600,000 | 763,716 | |||||
Series B 5.00% 7/15/30 | 700,000 | 916,664 | |||||
Series B 5.00% 7/15/31 | 1,050,000 | 1,385,947 | |||||
Salt Lake City, Utah Airport Revenue | |||||||
Series A 5.00% 7/1/36 (AMT) | 10,000,000 | 12,338,700 | |||||
Series A 5.00% 7/1/38 (AMT) | 5,000,000 | 6,142,500 | |||||
Series B 5.00% 7/1/31 | 500,000 | 615,545 | |||||
Series B 5.00% 7/1/32 | 600,000 | 736,872 |
68
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Salt Lake City, Utah Airport Revenue | |||||||
Series B 5.00% 7/1/33 | 1,000,000 | $ | 1,225,210 | ||||
South Jersey Port, New Jersey | |||||||
(Subordinated Marine Terminal) | |||||||
Series B 5.00% 1/1/24 (AMT) | 180,000 | 198,115 | |||||
Series B 5.00% 1/1/25 (AMT) | 390,000 | 444,740 | |||||
Series B 5.00% 1/1/30 (AMT) | 230,000 | 281,844 | |||||
Series B 5.00% 1/1/32 (AMT) | 215,000 | 261,492 | |||||
Series B 5.00% 1/1/33 (AMT) | 705,000 | 855,962 | |||||
Series B 5.00% 1/1/34 (AMT) | 880,000 | 1,066,463 | |||||
Series B 5.00% 1/1/35 (AMT) | 675,000 | 816,507 | |||||
Series B 5.00% 1/1/36 (AMT) | 660,000 | 796,237 | |||||
Series B 5.00% 1/1/37 (AMT) | 430,000 | 517,970 | |||||
Texas Private Activity Bond Surface Transportation Corporate | |||||||
Senior Lien Revenue | |||||||
(NTE Mobility Partners Segments 3 LLC Segment 3A and 3B | |||||||
Facility) | |||||||
7.00% 12/31/38 (AMT) | 3,750,000 | 4,239,412 | |||||
Washington Metropolitan Area Transit Authority | |||||||
(Green Bonds - Climate Bond Certified) | |||||||
Series A 5.00% 7/15/31 | 1,885,000 | 2,576,531 | |||||
Wayne County, Michigan Airport Authority | |||||||
Series D 5.00% 12/1/45 (AGM) | 6,300,000 | 7,413,525 | |||||
Westchester County, New York Industrial Development Agency | |||||||
(Million Air Two LLC General Aviation Facilities Project) | |||||||
Series A 144A 7.00% 6/1/46 (AMT) # | 875,000 | 942,218 | |||||
202,111,907 | |||||||
Water & Sewer Revenue Bonds – 2.22% | |||||||
Collier County Water-Sewer District | |||||||
4.00% 7/1/45 | 10,365,000 | 12,536,571 | |||||
Dominion, Colorado Water & Sanitation District | |||||||
5.25% 12/1/27 | 450,000 | 463,959 | |||||
Great Lakes, Michigan Water Authority Water Supply System | |||||||
Revenue | |||||||
(Senior Lien Bond) | |||||||
Series C 5.00% 7/1/31 | 3,000,000 | 3,625,830 | |||||
New York City, New York Municipal Water Finance Authority | |||||||
Water & Sewer System Revenue | |||||||
(General Resolution Revenue Bonds) | |||||||
Series EE 5.00% 6/15/39 | 5,000,000 | 5,911,550 | |||||
San Antonio, Texas Water System Revenue | |||||||
Series A 5.00% 5/15/32 | 1,500,000 | 1,844,745 |
69
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Water & Sewer Revenue Bonds (continued) | |||||||
San Antonio, Texas Water System Revenue | |||||||
Series A 5.00% 5/15/33 | 2,250,000 | $ | 2,763,563 | ||||
27,146,218 | |||||||
Total Municipal Bonds (cost $1,154,183,588) | 1,255,333,240 | ||||||
Short-Term Investments – 0.91% | |||||||
Variable Rate Demand Notes – 0.91%¤ | |||||||
Metropolitan Water District of Southern California | |||||||
Series A-2 0.01% 7/1/37 (LOC - TD Bank N.A.) | 5,000,000 | 5,000,000 | |||||
Mississippi Business Finance Corporation Gulf Opportunity Zone | |||||||
Industrial Development Revenue | |||||||
(Chevron U.S.A. Inc. Project) | |||||||
Series B 0.01% 11/1/35 | 330,000 | 330,000 | |||||
Series C 0.01% 11/1/35 | 700,000 | 700,000 | |||||
Series E 0.01% 12/1/30 | 1,200,000 | 1,200,000 | |||||
Series E 0.01% 12/1/30 | 1,970,000 | 1,970,000 | |||||
Series G 0.01% 12/1/30 | 500,000 | 500,000 | |||||
Series I 0.01% 11/1/35 | 1,000,000 | 1,000,000 | |||||
New York City, New York Transitional Finance Authority Future | |||||||
Tax Secured | |||||||
Fiscal 2019 Subordinate Series B-4 0.01% 8/1/42 | |||||||
(SPA - JPMorgan Chase Bank N.A.) | 100,000 | 100,000 | |||||
Phoenix Industrial Development Authority | |||||||
(Mayo Clinic) Series B 0.01% 11/15/52 | |||||||
(SPA - Northern Trust Company) | 330,000 | 330,000 | |||||
Total Short-Term Investments (cost $11,130,000) | 11,130,000 | ||||||
Total Value of Securities–103.67% | |||||||
(cost $1,165,313,588) | $ | 1,266,463,240 |
° | 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, 2021, the aggregate value of Rule 144A securities was $61,052,323, which represents 5.00% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
‡ | Non-income producing security. Security is currently in default. |
70
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. 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 descriptions. |
^ | 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 10 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, 2021. |
Summary of abbreviations: |
AGC – Insured by Assured Guaranty Corporation |
AGM – Insured by Assured Guaranty Municipal Corporation |
AMT – Subject to Alternative Minimum Tax |
BAM – Insured by Build America Mutual Assurance |
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 |
NATL – Insured by National Public Finance Guarantee Corporation |
PSF – Guaranteed by Permanent School Fund |
SPA – Stand-by Purchase Agreement |
USD – US Dollar |
See accompanying notes, which are an integral part of the financial statements.
71
Schedules of investments | |
Delaware National High-Yield Municipal Bond Fund | August 31, 2021 |
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds – 99.67% | |||||||
Corporate Revenue Bonds – 22.03% | |||||||
Allegheny County, Pennsylvania Industrial Development | |||||||
Authority Revenue | |||||||
(Environmental Improvement - US Steel Corp. Project) | |||||||
5.75% 8/1/42 (AMT) | 2,000,000 | $ | 2,058,120 | ||||
Anuvia, Florida | |||||||
144A 5.00% 1/1/29 #, = | 136,374 | 102,280 | |||||
Arizona Industrial Development Authority Revenue | |||||||
(Legacy Cares Inc. Project) | |||||||
Series A 144A 7.75% 7/1/50 # | 15,330,000 | 18,478,169 | |||||
Buckeye, Ohio Tobacco Settlement Financing Authority | |||||||
(Asset-Backed Senior) | |||||||
Series B-2 5.00% 6/1/55 | 34,090,000 | 39,670,192 | |||||
(Senior) | |||||||
Series A-2 3.00% 6/1/48 | 1,775,000 | 1,844,296 | |||||
Series A-2 4.00% 6/1/48 | 3,915,000 | 4,499,705 | |||||
Calhoun County Navigation Industrial Development Authority | |||||||
(Max Midstream Texas, LLC Project) | |||||||
Series A 144A 3.625% 7/1/26 (AMT) # | 8,285,000 | 8,625,845 | |||||
California County Tobacco Securitization Agency Settlement | |||||||
Revenue | |||||||
(Capital Appreciation Bond - Fresno County Tobacco Funding | |||||||
Corporation) | |||||||
0.83% 6/1/55 ^ | 100,000,000 | 7,688,000 | |||||
California Pollution Control Financing Authority Revenue | |||||||
(Calplant I Project) | |||||||
144A 7.50% 7/1/32 (AMT) # | 1,600,000 | 1,498,704 | |||||
144A 8.00% 7/1/39 (AMT) #, ‡ | 5,250,000 | 3,412,500 | |||||
Children’s Trust Fund, Puerto Rico | |||||||
(Asset-Backed) | |||||||
Series B 0.485% 5/15/57 ^ | 3,420,000 | 186,116 | |||||
District of Columbia Tobacco Settlement Financing | |||||||
(Capital Appreciation-Asset-Backed) | |||||||
Series D 0.122% 6/15/55 ^ | 250,000,000 | 22,542,500 | |||||
Erie, New York Tobacco Asset Securitization | |||||||
(Asset-Backed) | |||||||
Series A 144A 1.536% 6/1/60 #, ^ | 192,305,000 | 10,486,392 | |||||
Florida Development Finance Corporation Surface | |||||||
Transportation Facility Revenue | |||||||
(Brightline Passenger Rail Project) | |||||||
Series B 144A 7.375% 1/1/49 (AMT) # | 14,040,000 | 15,437,261 | |||||
(Virgin Trains USA Passenger Rail Project) | |||||||
Series A 144A 6.25% 1/1/49 (AMT) #, ● | 4,000,000 | 4,114,560 |
72
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Florida Development Finance Corporation Surface | |||||||
Transportation Facility Revenue | |||||||
(Virgin Trains USA Passenger Rail Project) | |||||||
Series A 144A 6.50% 1/1/49 (AMT) #, ● | 8,905,000 | $ | 9,220,949 | ||||
George L Smith II Georgia World Congress Center Authority | |||||||
(Convention Center Hotel First) | |||||||
Series A 4.00% 1/1/54 | 4,000,000 | 4,564,200 | |||||
(Convention Center Hotel Second) | |||||||
Series B 144A 5.00% 1/1/54 # | 5,000,000 | 5,915,350 | |||||
Golden State, California Tobacco Securitization Corporate | |||||||
Settlement Revenue | |||||||
(Asset-Backed) | |||||||
Series A-2 5.00% 6/1/47 | 4,000,000 | 4,133,280 | |||||
(Capital Appreciation - Asset-Backed-1st Subordinate) | |||||||
Series B 1.548% 6/1/47 ^ | 30,145,000 | 6,826,034 | |||||
Hoover, Alabama Industrial Development Board | |||||||
(United States Steel Corporation Project) | |||||||
5.75% 10/1/49 (AMT) | 10,250,000 | 12,332,390 | |||||
Houston, Texas Airport System Revenue | |||||||
Series B-1 5.00% 7/15/35 (AMT) | 3,000,000 | 3,328,920 | |||||
(Special Facilities Continental Airlines, Inc. Terminal | |||||||
Improvements Projects) | |||||||
Series 2011 6.625% 7/15/38 (AMT) | 2,000,000 | 2,012,840 | |||||
(United Airlines Inc.) | |||||||
5.00% 7/1/29 (AMT) | 1,150,000 | 1,261,700 | |||||
Idaho State Board of Correction | |||||||
(Management & Training Corporation) | |||||||
5.50% 8/1/29 | 4,145,293 | 4,113,623 | |||||
Indiana Finance Authority Exempt Facility Revenue | |||||||
(Polyflow Indiana Project - Green Bond) | |||||||
144A 7.00% 3/1/39 (AMT) # | 7,035,000 | 6,821,558 | |||||
Inland, California Empire Tobacco Securitization | |||||||
(Capital Appreciation-Asset-Backed) | |||||||
Series E 144A 0.967% 6/1/57 #, ^ | 351,610,000 | 24,225,929 | |||||
Series F 144A 1.403% 6/1/57 #, ^ | 188,290,000 | 11,127,939 | |||||
Main Street Natural Gas Project Revenue, Georgia | |||||||
Series A 5.50% 9/15/23 | 40,000 | 44,145 | |||||
Michigan Finance Authority Limited Obligation Revenue | |||||||
Series B-2 4.97% 6/1/65 ^ | 10,000,000 | 1,355,200 | |||||
Monroe, New York Tobacco Asset Securitization | |||||||
(4th Subordinate - Capital Appreciation - Asset-Backed) | |||||||
Series A 144A 0.186% 6/1/61 #, ^ | 487,500,000 | 24,194,625 |
73
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Nevada State Department of Business & Industry | |||||||
(Green Fulcrum Sierra Biofuels Project) | |||||||
144A 6.25% 12/15/37 (AMT) # | 2,500,000 | $ | 2,638,975 | ||||
New Jersey Economic Development Authority Special Facility | |||||||
Revenue | |||||||
(Continental Airlines Project) | |||||||
5.25% 9/15/29 (AMT) | 4,000,000 | 4,203,680 | |||||
Series B 5.625% 11/15/30 (AMT) | 1,270,000 | 1,417,930 | |||||
New Jersey Tobacco Settlement Financing Corporation | |||||||
Series B 5.00% 6/1/46 | 4,440,000 | 5,279,648 | |||||
New York City, New York Industrial Development Agency | |||||||
(Queens Baseball Stadium Project) | |||||||
Series A 2.00% 1/1/38 (AGM) | 500,000 | 493,030 | |||||
New York Liberty Development Revenue | |||||||
(Goldman Sachs Headquarters) | |||||||
5.25% 10/1/35 | 360,000 | 517,597 | |||||
New York Transportation Development | |||||||
(American Airlines Inc. John F. Kennedy International Airport | |||||||
Project) | |||||||
5.375% 8/1/36 (AMT) | 1,000,000 | 1,278,030 | |||||
Pennsylvania Economic Development Financing Authority | |||||||
(National Gypsum) | |||||||
5.50% 11/1/44 (AMT) | 4,500,000 | 4,803,255 | |||||
Port of Seattle, Washington Industrial Development Corporation | |||||||
Special Facilities Revenue | |||||||
(Delta Airlines) | |||||||
5.00% 4/1/30 (AMT) | 2,000,000 | 2,133,440 | |||||
Public Authority for Colorado Energy Natural Gas Revenue | |||||||
Series 28 6.50% 11/15/38 | 2,000,000 | 3,123,520 | |||||
Salt Verde, Arizona Financial Senior Gas Revenue | |||||||
5.00% 12/1/37 | 9,250,000 | 13,085,790 | |||||
5.25% 12/1/27 | 2,235,000 | 2,793,638 | |||||
5.25% 12/1/28 | 1,050,000 | 1,342,079 | |||||
5.50% 12/1/29 | 765,000 | 1,011,437 | |||||
Shoals, Indiana | |||||||
(National Gypsum Co. Project) | |||||||
7.25% 11/1/43 (AMT) | 1,625,000 | 1,760,005 | |||||
Southern Ohio Port Authority | |||||||
(PureCycle Project) | |||||||
Series A 7.00% 12/1/42 | 2,500,000 | 2,911,575 |
74
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
St. James Parish, Louisiana | |||||||
(NuStar Logistics, LP Project) | |||||||
144A 6.10% 6/1/38 #, ● | 1,000,000 | $ | 1,326,530 | ||||
144A 6.35% 7/1/40 # | 3,600,000 | 4,847,364 | |||||
Series B 144A 6.10% 12/1/40 #, ● | 1,630,000 | 2,162,244 | |||||
Tennessee State Energy Acquisition Gas Revenue | |||||||
Series A 4.00% 5/1/48 ● | 720,000 | 760,579 | |||||
Series C 5.00% 2/1/27 | 2,940,000 | 3,542,053 | |||||
TSASC, New York | |||||||
Series A 5.00% 6/1/41 | 705,000 | 827,628 | |||||
Tulsa, Oklahoma Municipal Airports Improvement Trust Revenue | |||||||
Series A 5.50% 6/1/35 (AMT) | 2,000,000 | 2,146,940 | |||||
Valparaiso, Indiana | |||||||
(Pratt Paper LLC Project) | |||||||
7.00% 1/1/44 (AMT) | 2,865,000 | 3,254,239 | |||||
Virginia Tobacco Settlement Financing Corporation | |||||||
Series B-1 5.00% 6/1/47 | 2,000,000 | 2,013,240 | |||||
Series C 2.243% 6/1/47 ^ | 71,975,000 | 17,666,983 | |||||
Series D 2.567% 6/1/47 ^ | 151,255,000 | 34,443,789 | |||||
Washington Economic Development Finance Authority Revenue | |||||||
(Columbia Pulp I, LLC Project) | |||||||
Series 2017A 144A 7.50% 1/1/32 (AMT) #, ‡ | 4,800,000 | 3,600,000 | |||||
387,508,540 | |||||||
Education Revenue Bonds – 16.73% | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(ACCEL Schools Project) | |||||||
Series A 144A 5.25% 8/1/48 # | 3,200,000 | 3,652,896 | |||||
(American Charter Schools Foundation Project) | |||||||
144A 6.00% 7/1/37 # | 1,205,000 | 1,489,910 | |||||
144A 6.00% 7/1/47 # | 4,735,000 | 5,760,648 | |||||
(Basis Schools Projects) | |||||||
Series A 144A 5.125% 7/1/37 # | 750,000 | 869,003 | |||||
(Empower College Prep Project) | |||||||
144A 6.00% 7/1/49 # | 1,000,000 | 1,108,020 | |||||
(Kaizen Education Foundation Project) | |||||||
144A 5.80% 7/1/52 # | 4,000,000 | 4,656,320 | |||||
(Pinecrest Academy Nevada-Horizon, Inspirada) | |||||||
Series A 144A 5.75% 7/15/48 # | 2,250,000 | 2,629,305 | |||||
Build NYC Resource, New York | |||||||
5.00% 11/1/39 | 1,000,000 | 1,089,570 |
75
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Build NYC Resource, New York | |||||||
(Inwood Academy for Leadership Charter School Project) | |||||||
Series A 144A 5.125% 5/1/38 # | 575,000 | $ | 668,633 | ||||
Series A 144A 5.50% 5/1/48 # | 1,500,000 | 1,754,520 | |||||
(New Dawn Charter Schools Project) | |||||||
144A 5.625% 2/1/39 # | 1,290,000 | 1,421,683 | |||||
144A 5.75% 2/1/49 # | 2,700,000 | 2,959,092 | |||||
Burbank, Illinois | |||||||
(Intercultural Montessori Language) | |||||||
144A 6.25% 9/1/45 # | 4,000,000 | 4,397,600 | |||||
California Educational Facilities Authority Revenue | |||||||
(Stanford University) | |||||||
Series V-1 5.00% 5/1/49 | 16,465,000 | 25,699,395 | |||||
Series V-2 2.25% 4/1/51 | 3,975,000 | 3,932,110 | |||||
California Municipal Finance Authority Revenue | |||||||
(California Baptist University) | |||||||
Series A 144A 5.50% 11/1/45 # | 4,000,000 | 4,618,880 | |||||
(Julian Charter School Project) | |||||||
Series A 144A 5.625% 3/1/45 # | 5,250,000 | 5,465,670 | |||||
(Partnership Uplift Community Project) | |||||||
Series A 5.25% 8/1/42 | 1,700,000 | 1,739,593 | |||||
(Santa Rosa Academy Project) | |||||||
Series A 6.00% 7/1/42 | 1,250,000 | 1,295,475 | |||||
(Southwestern Law School) | |||||||
6.50% 11/1/41 | 1,500,000 | 1,512,480 | |||||
California Public Finance Authority | |||||||
(Crossroads Christian School Project) | |||||||
144A 5.00% 1/1/56 # | 2,000,000 | 2,089,200 | |||||
California School Finance Authority | |||||||
(Aspire Public Schools) | |||||||
Series A 144A 5.00% 8/1/35 # | 585,000 | 670,521 | |||||
Series A 144A 5.00% 8/1/40 # | 605,000 | 689,029 | |||||
(Encore Education Obligated Group) | |||||||
Series A 144A 5.00% 6/1/52 # | 1,000,000 | 993,700 | |||||
(Escuela Popular Project) | |||||||
144A 6.50% 7/1/50 # | 2,500,000 | 2,838,675 | |||||
(New Designs Charter School) | |||||||
Series A 5.50% 6/1/42 | 1,750,000 | 1,790,250 | |||||
(Sonoma County Junior College District Project) | |||||||
Series A 4.00% 11/1/51 | 2,830,000 | 3,249,915 | |||||
Series A 4.00% 11/1/55 | 2,500,000 | 2,853,925 |
76
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
California School Finance Authority | |||||||
(View Park Elementary & Middle Schools) | |||||||
Series A 5.875% 10/1/44 | 1,000,000 | $ | 1,109,490 | ||||
Series A 6.00% 10/1/49 | 720,000 | 801,497 | |||||
California State University | |||||||
(Systemwide) | |||||||
Series A 5.00% 11/1/26 | 2,000,000 | 2,468,380 | |||||
California Statewide Communities Development Authority | |||||||
Charter School Revenue | |||||||
(Green Dot Public Schools) | |||||||
Series A 7.25% 8/1/41 | 1,915,000 | 1,924,001 | |||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(Lancer Educational Student Housing Project) | |||||||
Series A 144A 5.00% 6/1/46 # | 1,500,000 | 1,719,630 | |||||
Capital Trust Agency, Florida | |||||||
(Pineapple Cove Classical Academy Inc. Project) | |||||||
Series A 144A 5.375% 7/1/54 # | 6,000,000 | 6,812,820 | |||||
(River City Education Services Project) | |||||||
Series A 5.375% 2/1/35 | 870,000 | 922,565 | |||||
Series A 5.625% 2/1/45 | 1,500,000 | 1,588,215 | |||||
(The Pepin Academies Inc. Project) | |||||||
Series A 5.75% 7/1/55 | 2,625,000 | 2,883,274 | |||||
(University Bridge, LLC Student Housing Project) | |||||||
Series A 144A 5.25% 12/1/58 # | 8,000,000 | 9,368,720 | |||||
Chester County, Pennsylvania Industrial Development Authority | |||||||
Student Housing Revenue | |||||||
(University Student Housing, LLC Project at West Chester | |||||||
University of Pennsylvania) | |||||||
Series A 5.00% 8/1/30 | 2,200,000 | 2,279,090 | |||||
Colorado Educational & Cultural Facilities Authority Revenue | |||||||
(Charter School - Community Leadership Academy) | |||||||
7.45% 8/1/48 | 2,000,000 | 2,196,860 | |||||
(Charter School - Loveland Classical School) | |||||||
144A 5.00% 7/1/46 # | 1,500,000 | 1,643,100 | |||||
(Global Village Academy - Northglenn Project) | |||||||
144A 5.00% 12/1/40 # | 1,110,000 | 1,240,503 | |||||
144A 5.00% 12/1/55 # | 1,720,000 | 1,882,368 | |||||
(Skyview Charter School) | |||||||
144A 5.375% 7/1/44 # | 500,000 | 537,040 | |||||
(Windsor Charter Academy Project) | |||||||
Series 2016 5.00% 9/1/36 | 1,000,000 | 1,000,680 |
77
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Hawaii State Department of Budget & Finance | |||||||
(Hawaii Pacific University) | |||||||
Series A 6.875% 7/1/43 | 2,000,000 | $ | 2,167,520 | ||||
Henderson, Nevada Public Improvement Trust | |||||||
(Touro College & University System) | |||||||
Series A 5.50% 1/1/39 | 560,000 | 616,750 | |||||
Series A 5.50% 1/1/44 | 2,000,000 | 2,192,220 | |||||
Idaho Housing & Finance Association | |||||||
(Compass Public Charter School) | |||||||
Series A 144A 5.00% 7/1/54 # | 860,000 | 971,146 | |||||
(Idaho Arts Charter School) | |||||||
144A 5.00% 12/1/36 # | 715,000 | 810,703 | |||||
(North Star Charter School) | |||||||
Capital Appreciation Subordinate Series B | |||||||
144A 4.88% 7/1/49 #, ^ | 2,888,155 | 759,960 | |||||
Series A 6.75% 7/1/48 | 529,150 | 600,136 | |||||
(Xavier Charter School Project) | |||||||
Series A 5.00% 6/1/50 | 1,000,000 | 1,107,280 | |||||
Illinois Finance Authority Charter School Revenue | |||||||
(Chicago International Charter School Project) | |||||||
5.00% 12/1/47 | 2,965,000 | 3,441,802 | |||||
(Uno Charter School) | |||||||
Series A 7.125% 10/1/41 | 1,000,000 | 1,005,550 | |||||
Illinois Finance Authority Revenue | |||||||
(Acero Charter Schools) | |||||||
144A 4.00% 10/1/42 # | 2,245,000 | 2,519,968 | |||||
(Lake Forest College) | |||||||
Series A 6.00% 10/1/48 | 1,000,000 | 1,028,630 | |||||
(Rogers Park Montessori) | |||||||
6.00% 2/1/34 | 675,000 | 727,184 | |||||
6.125% 2/1/45 | 1,800,000 | 1,927,368 | |||||
Illinois Finance Authority Student Housing & Academic Facility | |||||||
Revenue | |||||||
(University of Illinois at Chicago Project) | |||||||
Series A 5.00% 2/15/47 | 3,640,000 | 4,203,508 | |||||
Illinois Finance Authority Student Housing Revenue | |||||||
(Dekalb II - Northern Illinois University Project) | |||||||
6.875% 10/1/43 | 1,000,000 | 1,005,350 | |||||
Kent County, Delaware Student Housing and Dining Facilities | |||||||
Revenue | |||||||
(Delaware State University Project) | |||||||
Series A 5.00% 7/1/58 | 1,250,000 | 1,406,925 |
78
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Louisiana Public Facilities Authority Revenue | |||||||
(Lake Charles Charter Academy Foundation Project) | |||||||
8.00% 12/15/41 | 1,500,000 | $ | 1,520,355 | ||||
(Lincoln Preparatory School Project) | |||||||
Series A 144A 5.25% 6/1/60 # | 2,000,000 | 2,201,720 | |||||
Macomb County, Michigan State Public School Academy | |||||||
Revenue | |||||||
(Academy Of Warren) | |||||||
Series A 144A 5.50% 5/1/50 # | 1,810,000 | 1,917,098 | |||||
Macon-Bibb County, Georgia Urban Development Authority | |||||||
Revenue | |||||||
(Academy for Classical Education) | |||||||
Series A 144A 5.875% 6/15/47 # | 1,680,000 | 1,951,169 | |||||
Series A 144A 6.00% 6/15/52 # | 1,530,000 | 1,782,664 | |||||
Massachusetts Development Finance Agency Revenue | |||||||
Series V 5.00% 7/1/55 | 5,000,000 | 8,031,150 | |||||
Miami-Dade County, Florida Industrial Development Authority | |||||||
(Youth Co-Op Charter School) | |||||||
Series A 144A 5.75% 9/15/35 # | 1,000,000 | 1,106,190 | |||||
Series A 144A 6.00% 9/15/45 # | 1,000,000 | 1,101,810 | |||||
Michigan Finance Authority Limited Obligation Revenue | |||||||
(Landmark Academy Project) | |||||||
5.00% 6/1/45 | 2,000,000 | 2,194,060 | |||||
(Public School Academy Old Redford) | |||||||
Series A 6.50% 12/1/40 | 900,000 | 901,386 | |||||
Nevada State Department of Business & Industry | |||||||
(Somerset Academy) | |||||||
Series A 144A 5.00% 12/15/35 # | 1,595,000 | 1,789,159 | |||||
Series A 144A 5.125% 12/15/45 # | 2,515,000 | 2,785,966 | |||||
New Jersey State Higher Education Student Assistance | |||||||
Authority Student Loan Revenue | |||||||
Series 1B 5.75% 12/1/39 (AMT) | 1,250,000 | 1,317,813 | |||||
New York State Dormitory Authority | |||||||
(Touro College & University System) | |||||||
Series A 5.50% 1/1/44 | 2,875,000 | 3,168,020 | |||||
Philadelphia, Pennsylvania Authority for Industrial Development | |||||||
Revenue | |||||||
(1st Philadelphia Preparatory) | |||||||
Series A 7.25% 6/15/43 | 1,230,000 | 1,413,122 |
79
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Philadelphia, Pennsylvania Authority for Industrial Development | |||||||
Revenue | |||||||
(Green Woods Charter School Project) | |||||||
Series A 5.75% 6/15/42 | 1,600,000 | $ | 1,652,128 | ||||
(Tacony Academy Charter School Project) | |||||||
7.00% 6/15/43 | 1,540,000 | 1,685,792 | |||||
Phoenix, Arizona Industrial Development Authority Education | |||||||
Revenue | |||||||
(Basic Schools Project) | |||||||
Series 2015A 144A 5.00% 7/1/46 # | 4,000,000 | 4,452,760 | |||||
Series 2016A 144A 5.00% 7/1/45 # | 2,000,000 | 2,227,160 | |||||
(Choice Academies Project) | |||||||
5.375% 9/1/32 | 1,000,000 | 1,030,540 | |||||
5.625% 9/1/42 | 600,000 | 618,168 | |||||
(Eagle College Preparatory Project) | |||||||
Series A 5.00% 7/1/43 | 450,000 | 459,324 | |||||
Pima County, Arizona Industrial Development Authority | |||||||
Education Revenue | |||||||
(American Leadership Academy Project) | |||||||
144A 5.00% 6/15/47 # | 1,630,000 | 1,654,678 | |||||
144A 5.00% 6/15/52 # | 1,400,000 | 1,420,650 | |||||
(Career Success Schools Project) | |||||||
144A 5.50% 5/1/40 # | 500,000 | 538,170 | |||||
144A 5.75% 5/1/50 # | 2,530,000 | 2,724,355 | |||||
(Edkey Charter Schools Project) | |||||||
144A 5.00% 7/1/49 # | 2,500,000 | 2,746,350 | |||||
144A 5.00% 7/1/55 # | 2,500,000 | 2,738,050 | |||||
Pottsboro, Texas Higher Education Finance Authority Revenue | |||||||
Series A 5.00% 8/15/36 | 755,000 | 838,684 | |||||
Series A 5.00% 8/15/46 | 1,000,000 | 1,093,800 | |||||
Private Colleges & Universities Authority, Georgia Revenue | |||||||
(Mercer University) | |||||||
Series A 5.00% 10/1/32 | 1,005,000 | 1,008,889 | |||||
Public Finance Authority Revenue, Wisconsin | |||||||
(Coral Academy Of Science Las Vegas) | |||||||
Series A 4.00% 7/1/41 | 800,000 | 911,032 | |||||
Series A 4.00% 7/1/51 | 1,000,000 | 1,124,170 | |||||
(Goodwill Industries of Southern Nevada Project) | |||||||
Series A 5.50% 12/1/38 | 2,572,956 | 2,567,090 | |||||
Series A 5.75% 12/1/48 | 2,576,272 | 2,553,163 | |||||
(Minnesota College of Osteopathic Medicine) | |||||||
Series A-1 144A 5.50% 12/1/48 #, ‡ | 125,528 | 62,764 |
80
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Public Finance Authority Revenue, Wisconsin | |||||||
(Minnesota College of Osteopathic Medicine) | |||||||
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 # | 470,000 | 510,204 | |||||
Series A 144A 5.00% 6/15/39 # | 500,000 | 553,180 | |||||
Series A 144A 5.00% 6/15/49 # | 1,100,000 | 1,204,544 | |||||
South Carolina Jobs-Economic Development Authority | |||||||
Educational Facilities Revenue | |||||||
(Green Charter Schools Project) | |||||||
Series A 144A 4.00% 6/1/36 # | 1,000,000 | 1,099,090 | |||||
Series A 144A 4.00% 6/1/46 # | 1,150,000 | 1,234,260 | |||||
Series A 144A 4.00% 6/1/56 # | 1,530,000 | 1,626,589 | |||||
(High Point Academy Project) | |||||||
Series A 144A 5.75% 6/15/49 # | 5,000,000 | 5,789,000 | |||||
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 | 2,757,222 | |||||
University of Texas System Board of Regents | |||||||
Series B 5.00% 8/15/49 | 21,400,000 | 33,433,220 | |||||
University of Virginia | |||||||
Series A 2.18% 11/1/51 | 10,000,000 | 9,675,200 | |||||
Utah State Charter School Finance Authority Revenue | |||||||
(Leadership Learning Academy Project) | |||||||
Series A 144A 5.00% 6/15/39 # | 1,000,000 | 1,119,460 | |||||
Series A 144A 5.00% 6/15/50 # | 2,200,000 | 2,433,046 | |||||
Wisconsin Public Finance Authority Revenue | |||||||
(Pine Lake Preparatory) | |||||||
144A 5.50% 3/1/45 # | 3,460,000 | 3,847,382 | |||||
(Roseman University Health Sciences Project) | |||||||
5.75% 4/1/42 | 2,000,000 | 2,052,220 | |||||
Yonkers, New York Economic Development Corporation | |||||||
Education Revenue | |||||||
(Lamartine/Warburton LLC - Charter School of Educational | |||||||
Excellence Project) | |||||||
Series A 5.00% 10/15/54 | 465,000 | 541,390 | |||||
294,181,657 | |||||||
Electric Revenue Bonds – 4.07% | |||||||
Build NYC Resource, New York | |||||||
(Brooklyn Navy Yard Cogeneration Partners, L.P. Project) | |||||||
144A 5.25% 12/31/33 (AMT) # | 4,520,000 | 4,999,572 |
81
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 A 5.00% 7/1/42 ‡ | 8,615,000 | $ | 8,442,700 | ||||
Series A 5.05% 7/1/42 ‡ | 4,590,000 | 4,498,200 | |||||
Series A 6.75% 7/1/36 ‡ | 1,500,000 | 1,509,375 | |||||
Series AAA 5.25% 7/1/25 ‡ | 925,000 | 909,969 | |||||
Series AAA 5.25% 7/1/26 ‡ | 1,030,000 | 1,013,263 | |||||
Series AAA 5.25% 7/1/27 ‡ | 5,330,000 | 5,243,387 | |||||
Series AAA 5.25% 7/1/28 ‡ | 1,205,000 | 1,185,419 | |||||
Series CCC 5.25% 7/1/27 ‡ | 5,525,000 | 5,435,219 | |||||
Series WW 5.00% 7/1/28 ‡ | 3,405,000 | 3,336,900 | |||||
Series WW 5.25% 7/1/25 ‡ | 1,530,000 | 1,505,137 | |||||
Series WW 5.25% 7/1/33 ‡ | 830,000 | 816,513 | |||||
Series WW 5.50% 7/1/38 ‡ | 9,325,000 | 9,196,781 | |||||
Series XX 4.75% 7/1/26 ‡ | 920,000 | 898,150 | |||||
Series XX 5.25% 7/1/40 ‡ | 9,795,000 | 9,635,831 | |||||
Series XX 5.75% 7/1/36 ‡ | 5,840,000 | 5,781,600 | |||||
Series ZZ 4.75% 7/1/27 ‡ | 760,000 | 741,950 | |||||
Series ZZ 5.25% 7/1/24 ‡ | 1,275,000 | 1,254,281 | |||||
Series ZZ 5.25% 7/1/26 ‡ | 2,005,000 | 1,972,419 | |||||
Salt River Project Agricultural Improvement & Power District, | |||||||
Arizona | |||||||
(Salt River Project) | |||||||
Series A 5.00% 1/1/31 | 2,520,000 | 3,165,145 | |||||
71,541,811 | |||||||
Healthcare Revenue Bonds – 19.51% | |||||||
Alachua County, Florida Health Facilities Authority | |||||||
(Oak Hammock University) | |||||||
Series A 8.00% 10/1/42 | 1,000,000 | 1,074,220 | |||||
Series A 8.00% 10/1/46 | 1,500,000 | 1,609,650 | |||||
Apple Valley, Minnesota | |||||||
(Senior Living, LLC Project 2nd Tier) | |||||||
Series B 5.00% 1/1/47 | 2,375,000 | 1,861,644 | |||||
Series B 5.25% 1/1/37 | 420,000 | 369,482 | |||||
(Senior Living, LLC Project 4th Tier) | |||||||
Series D 7.25% 1/1/52 | 7,410,000 | 5,746,900 | |||||
Arizona Industrial Development Authority Revenue | |||||||
(Great Lakes Senior Living Communities LLC Project 1st Tier) | |||||||
Series A 5.00% 1/1/54 | 2,595,000 | 2,732,146 | |||||
(Great Lakes Senior Living Communities LLC Project 2nd Tier) | |||||||
Series B 5.00% 1/1/49 | 975,000 | 964,333 | |||||
Series B 5.125% 1/1/54 | 1,130,000 | 1,130,644 |
82
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Arizona Industrial Development Authority Revenue | |||||||
(Great Lakes Senior Living Communities LLC Project 3rd Tier) | |||||||
Series C 144A 5.00% 1/1/49 # | 1,000,000 | $ | 900,990 | ||||
Series C 144A 5.50% 1/1/54 # | 4,000,000 | 3,652,080 | |||||
(Great Lakes Senior Living Communities LLC Project 4th Tier) | |||||||
144A 7.75% 1/1/54 # | 2,100,000 | 1,680,189 | |||||
Series D 144A 7.25% 1/1/54 # | 2,500,000 | 2,006,250 | |||||
Berks County, Pennsylvania Industrial Development Authority | |||||||
Revenue | |||||||
(Tower Health Project) | |||||||
5.00% 11/1/50 | 5,105,000 | 5,665,631 | |||||
Bexar County, Texas Health Facilities Development | |||||||
(Army Retirement Residence Foundation Project) | |||||||
Series 2010 5.875% 7/1/30 | 80,000 | 80,298 | |||||
Birmingham, Alabama Special Care Facilities Financing Authority | |||||||
(Methodist Home for the Aging) | |||||||
5.50% 6/1/30 | 1,850,000 | 1,996,150 | |||||
5.75% 6/1/35 | 1,500,000 | 1,613,040 | |||||
5.75% 6/1/45 | 2,500,000 | 2,646,275 | |||||
6.00% 6/1/50 | 2,650,000 | 2,823,814 | |||||
California Educational Facilities Authority Revenue | |||||||
(Stanford University) | |||||||
Series V-2 5.00% 4/1/51 | 2,500,000 | 3,956,900 | |||||
California Health Facilities Financing Authority Revenue | |||||||
(Kaiser Permanente) | |||||||
Series A-2 5.00% 11/1/47 | 4,870,000 | 7,371,816 | |||||
California Municipal Finance Authority Revenue | |||||||
(Goodwill Industry Sacramento Valley) 5.25% 1/1/45 | 1,295,000 | 1,296,230 | |||||
(Goodwill Industry Sacramento Valley and Northern Nevada | |||||||
Project) | |||||||
Series A 144A 6.625% 1/1/32 # | 500,000 | 503,235 | |||||
Series A 144A 6.875% 1/1/42 # | 1,500,000 | 1,508,265 | |||||
(Northbay Healthcare Group) | |||||||
Series A 5.25% 11/1/47 | 500,000 | 581,795 | |||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(Loma Linda University Medical Center) | |||||||
Series A 144A 5.25% 12/1/56 # | 4,500,000 | 5,061,150 | |||||
Series A 144A 5.50% 12/1/58 # | 5,000,000 | 5,925,650 | |||||
Camden County, New Jersey Improvement Authority Revenue | |||||||
(Cooper Health System Obligation Group) | |||||||
5.75% 2/15/42 | 2,050,000 | 2,182,451 |
83
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Capital Trust Agency, Florida | |||||||
(Elim Senior Housing Inc. Project) | |||||||
144A 5.875% 8/1/52 # | 2,500,000 | $ | 2,320,825 | ||||
(Tuscan Gardens Senior Living Center) | |||||||
Series A 7.00% 4/1/49 | 5,000,000 | 2,798,400 | |||||
Chesterfield County, Virginia Economic Development Authority | |||||||
Revenue | |||||||
(1st Mortgage - Brandermill Woods Project) | |||||||
5.125% 1/1/43 | 1,030,000 | 1,036,561 | |||||
Clackamas County, Oregon Hospital Facility Authority | |||||||
(Rose Villa Project) | |||||||
Series A 5.25% 11/15/50 | 1,000,000 | 1,113,830 | |||||
Series A 5.375% 11/15/55 | 1,000,000 | 1,116,630 | |||||
Cobb County, Georgia Development Authority | |||||||
(Provident Village at Creekside Project) | |||||||
Series A 144A 6.00% 7/1/51 #, ‡ | 3,500,000 | 2,450,000 | |||||
Colorado Health Facilities Authority Revenue | |||||||
(Adventhealth Obligated Group) | |||||||
Series A 3.00% 11/15/51 | 5,750,000 | 6,178,835 | |||||
(American Baptist) | |||||||
8.00% 8/1/43 | 2,500,000 | 2,674,825 | |||||
(Capella of Grand Junction Project) | |||||||
144A 5.00% 12/1/54 # | 1,985,000 | 2,051,220 | |||||
(Mental Health Center Denver Project) | |||||||
Series A 5.75% 2/1/44 | 500,000 | 544,700 | |||||
(Sunny Vista Living Center) | |||||||
Series A 144A 5.50% 12/1/30 # | 750,000 | 806,527 | |||||
Series A 144A 5.75% 12/1/35 # | 1,150,000 | 1,242,264 | |||||
Series A 144A 6.125% 12/1/45 # | 1,200,000 | 1,301,532 | |||||
Series A 144A 6.25% 12/1/50 # | 560,000 | 609,633 | |||||
Cumberland County Municipal Authority Revenue | |||||||
(Asbury Maryland Obligated Group) | |||||||
5.25% 1/1/27 | 285,000 | 288,520 | |||||
5.25% 1/1/41 | 825,000 | 832,540 | |||||
Cuyahoga County, Ohio Hospital Revenue | |||||||
(The Metrohealth System) | |||||||
5.25% 2/15/47 | 4,000,000 | 4,778,400 | |||||
5.50% 2/15/52 | 4,655,000 | 5,607,273 | |||||
5.50% 2/15/57 | 6,365,000 | 7,593,636 | |||||
Decatur, Texas Hospital Authority | |||||||
(Wise Regional Health Systems) | |||||||
Series A 5.00% 9/1/34 | 1,000,000 | 1,109,170 |
84
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Decatur, Texas Hospital Authority | |||||||
(Wise Regional Health Systems) | |||||||
Series A 5.25% 9/1/29 | 500,000 | $ | 563,055 | ||||
Series A 5.25% 9/1/44 | 2,000,000 | 2,219,900 | |||||
Florida Development Finance | |||||||
(UF Health - Jacksonville Project) | |||||||
Series A 6.00% 2/1/33 | 490,000 | 524,192 | |||||
Glendale, Arizona Industrial Development Authority Revenue | |||||||
(Glencroft Retirement Community Project) | |||||||
5.00% 11/15/36 | 830,000 | 855,987 | |||||
5.25% 11/15/51 | 1,350,000 | 1,386,950 | |||||
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 | 1,046,370 | |||||
Hospital Facilities Authority of Multnomah County, Oregon | |||||||
(Mirabella at South Waterfront) | |||||||
5.50% 10/1/49 | 2,400,000 | 2,606,928 | |||||
Idaho Health Facilities Authority Revenue | |||||||
(St. Luke’s Health System Project) | |||||||
Series A 5.00% 3/1/33 | 485,000 | 606,236 | |||||
(Valley Vista Care Corporation) | |||||||
Series A 5.00% 11/15/32 | 455,000 | 488,010 | |||||
Illinois Finance Authority Revenue | |||||||
(The Admiral at the Lake Project) | |||||||
5.25% 5/15/42 | 900,000 | 956,106 | |||||
5.25% 5/15/54 | 5,600,000 | 5,922,280 | |||||
Illinois Housing Development Authority | |||||||
(Stonebridge of Gurnee Project) | |||||||
Series A 144A 5.45% 1/1/46 # | 2,500,000 | 2,416,825 | |||||
Series A 144A 5.60% 1/1/56 # | 2,630,000 | 2,497,474 | |||||
Iowa Finance Authority | |||||||
(PHS Council Bluffs Project) | |||||||
5.125% 8/1/48 | 1,750,000 | 1,835,890 | |||||
5.25% 8/1/55 | 2,500,000 | 2,622,725 | |||||
Kalispell, Montana | |||||||
(Immanuel Lutheran Corporation Project) | |||||||
Series A 5.25% 5/15/47 | 1,400,000 | 1,532,034 |
85
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Kentucky Economic Development Finance Authority Healthcare | |||||||
Revenue | |||||||
(Rosedale Green Project) | |||||||
5.50% 11/15/35 | 1,310,000 | $ | 1,363,121 | ||||
5.75% 11/15/45 | 2,500,000 | 2,589,200 | |||||
5.75% 11/15/50 | 1,600,000 | 1,654,016 | |||||
Kentwood, Michigan Economic Development Corporation | |||||||
Revenue | |||||||
(Limited Obligation - Holland Home) | |||||||
5.625% 11/15/41 | 1,250,000 | 1,283,288 | |||||
Kirkwood, Missouri Industrial Development Authority | |||||||
(Aberdeen Heights) | |||||||
Series A 5.25% 5/15/50 | 6,000,000 | 6,762,780 | |||||
Lake County, Florida Retirement Facility Revenue | |||||||
(Lakeside At Waterman Village Project) | |||||||
Series A 5.75% 8/15/50 | 2,500,000 | 2,872,575 | |||||
Series A 5.75% 8/15/55 | 1,500,000 | 1,714,755 | |||||
Louisiana Local Government Environmental Facilities & | |||||||
Community Development Authority Revenue | |||||||
(The Glen Retirement System Project) | |||||||
Series A 5.00% 1/1/49 | 2,500,000 | 2,507,425 | |||||
Series A 5.00% 1/1/55 | 2,635,000 | 2,609,467 | |||||
Lucas County, Ohio Health Care Facilities Revenue | |||||||
(Sunset Retirement Communities) | |||||||
5.50% 8/15/30 | 1,000,000 | 1,002,650 | |||||
Maricopa County, Arizona Industrial Development Authority | |||||||
(Christian Care Surprise Project) | |||||||
Series 2016 144A 6.00% 1/1/48 # | 5,645,000 | 5,881,695 | |||||
Michigan State Strategic Fund Limited Revenue | |||||||
(Evangelical Homes) | |||||||
5.50% 6/1/47 | 2,750,000 | 2,798,840 | |||||
Montgomery County, Pennsylvania Industrial Development | |||||||
Authority Revenue | |||||||
(Whitemarsh Continuing Care) | |||||||
5.25% 1/1/40 | 1,550,000 | 1,676,046 | |||||
5.375% 1/1/50 | 6,250,000 | 6,737,438 | |||||
Series A 5.375% 1/1/51 | 2,000,000 | 2,191,660 | |||||
Moon, Pennsylvania Industrial Development Authority | |||||||
(Baptist Homes Society Obligation) | |||||||
6.125% 7/1/50 | 8,500,000 | 9,185,185 |
86
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 | $ | 1,610,369 | ||||
Series A 144A 5.625% 7/1/46 # | 1,000,000 | 1,068,070 | |||||
Series A 144A 5.75% 7/1/54 # | 2,000,000 | 2,138,980 | |||||
New Hope, Texas Cultural Education Facilities Finance | |||||||
(Cardinal Bay - Village on the Park) | |||||||
Series A1 5.00% 7/1/46 | 660,000 | 687,218 | |||||
Series A1 5.00% 7/1/51 | 1,575,000 | 1,636,456 | |||||
Series B 4.00% 7/1/31 | 635,000 | 532,848 | |||||
Series B 4.75% 7/1/51 | 1,915,000 | 1,410,283 | |||||
Series C 5.00% 7/1/31 | 250,000 | 218,745 | |||||
Series C 5.25% 7/1/36 | 350,000 | 294,287 | |||||
Series C 5.75% 7/1/51 | 2,250,000 | 1,809,990 | |||||
Series D 6.00% 7/1/26 | 90,000 | 88,077 | |||||
Series D 7.00% 7/1/51 | 1,350,000 | 1,265,260 | |||||
(Legacy Midtown Park Project) | |||||||
Series A 5.50% 7/1/54 | 5,000,000 | 5,311,750 | |||||
New Jersey Economic Development Authority | |||||||
(Black Horse EHT Urban Renewal LLC Project) | |||||||
Series A 144A 5.00% 10/1/39 # | 3,125,000 | 3,227,594 | |||||
(Lions Gate Project) | |||||||
5.25% 1/1/44 | 2,000,000 | 2,060,020 | |||||
New Jersey Health Care Facilities Financing Authority Revenue | |||||||
(St. Peters University Hospital) | |||||||
6.25% 7/1/35 | 2,700,000 | 2,708,964 | |||||
New York State Dormitory Authority | |||||||
(Garnet Health Medical Center) | |||||||
144A 5.00% 12/1/40 # | 1,100,000 | 1,257,707 | |||||
Northampton County, Pennsylvania Industrial Development | |||||||
Authority Revenue | |||||||
(Morningstar Senior Living) | |||||||
5.00% 7/1/36 | 2,000,000 | 2,044,760 | |||||
5.00% 11/1/49 | 1,830,000 | 2,091,818 | |||||
Orange County, New York Funding Corporation Assisted Living | |||||||
Residence Revenue | |||||||
6.50% 1/1/46 | 3,600,000 | 3,641,976 | |||||
Palm Beach County, Florida Health Facilities Authority | |||||||
(Sinai Residences Boca Raton Project) | |||||||
Series A 7.25% 6/1/34 | 425,000 | 450,415 | |||||
Series A 7.50% 6/1/49 | 2,920,000 | 3,094,324 |
87
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Payne County, Oklahoma Economic Development Authority | |||||||
(Epworth Living at the Ranch) | |||||||
Series A 7.00% 11/1/51 ‡ | 961,600 | $ | 4,808 | ||||
Pennsylvania Economic Development Financing Authority | |||||||
(Tapestry Moon Senior Housing Project) | |||||||
Series 2018A 144A 6.75% 12/1/53 #, ‡ | 9,495,000 | 5,602,050 | |||||
Prince George’s County, Maryland | |||||||
(Collington Episcopal Life Care Community) | |||||||
5.25% 4/1/47 | 2,000,000 | 2,142,440 | |||||
Public Finance Authority, Wisconsin | |||||||
(Bancroft Neurohealth Project) | |||||||
Series A 144A 5.00% 6/1/36 # | 960,000 | 1,075,440 | |||||
Series A 144A 5.125% 6/1/48 # | 1,375,000 | 1,529,055 | |||||
Puerto Rico Industrial Tourist Educational Medical & | |||||||
Environmental Control Facilities Financing Authority | |||||||
(Auxilio Mutuo) | |||||||
Series A 6.00% 7/1/33 | 5,630,000 | 5,647,678 | |||||
Rochester, Minnesota | |||||||
(The Homestead at Rochester) | |||||||
Series A 6.875% 12/1/48 | 2,500,000 | 2,688,500 | |||||
Salem, Oregon Hospital Facility Authority Revenue | |||||||
(Capital Manor) | |||||||
6.00% 5/15/47 | 1,500,000 | 1,542,240 | |||||
Seminole County, Florida Industrial Development Authority | |||||||
Revenue | |||||||
(Legacy Pointe at UCF Project) | |||||||
Series A 5.50% 11/15/49 | 2,000,000 | 2,227,540 | |||||
Series A 5.75% 11/15/54 | 6,000,000 | 6,737,820 | |||||
Shelby County, Tennessee Health Educational & Housing | |||||||
Facilities Board Revenue | |||||||
(The Farms at Bailey Station Project) | |||||||
5.75% 10/1/59 | 3,670,000 | 3,942,865 | |||||
Southeastern Ohio Port Authority | |||||||
(Memorial Health Systems) | |||||||
5.00% 12/1/43 | 805,000 | 854,540 | |||||
5.50% 12/1/43 | 1,250,000 | 1,356,212 | |||||
St. Louis County, Missouri Industrial Development Authority | |||||||
(Nazareth Living Center Project) | |||||||
Series A 5.00% 8/15/35 | 600,000 | 650,694 | |||||
Series A 5.125% 8/15/45 | 1,800,000 | 1,925,586 |
88
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Tarrant County, Texas Cultural Education Facilities Finance | |||||||
(Buckingham Senior Living Community) | |||||||
5.50% 11/15/45 ‡ | 3,000,000 | $ | 1,710,000 | ||||
(Buckner Senior Living - Ventana Project) | |||||||
6.75% 11/15/47 | 2,250,000 | 2,577,353 | |||||
6.75% 11/15/52 | 3,300,000 | 3,762,000 | |||||
Tempe, Arizona Industrial Development Authority Revenue | |||||||
(Friendship Village) | |||||||
Series A 6.25% 12/1/46 | 500,000 | 503,700 | |||||
(Mirabella at ASU Project) | |||||||
Series A 144A 6.125% 10/1/47 # | 2,150,000 | 2,396,755 | |||||
Series A 144A 6.125% 10/1/52 # | 2,570,000 | 2,857,686 | |||||
University of North Carolina Board of Governors | |||||||
5.00% 2/1/49 | 19,355,000 | 30,245,284 | |||||
Washington State Housing Finance Commission | |||||||
(Heron’s Key) | |||||||
Series A 144A 7.00% 7/1/45 # | 1,000,000 | 1,109,990 | |||||
Series A 144A 7.00% 7/1/50 # | 3,625,000 | 4,016,899 | |||||
Westminster, Maryland | |||||||
(Lutheran Village Millers Grant) | |||||||
Series A 5.00% 7/1/24 | 910,000 | 975,984 | |||||
Series A 6.00% 7/1/34 | 1,000,000 | 1,109,220 | |||||
Series A 6.125% 7/1/39 | 750,000 | 831,195 | |||||
Series A 6.25% 7/1/44 | 2,500,000 | 2,769,725 | |||||
Wisconsin Health & Educational Facilities Authority | |||||||
(Covenant Communities Project) | |||||||
Series B 5.00% 7/1/48 | 1,000,000 | 1,047,150 | |||||
Series B 5.00% 7/1/53 | 945,000 | 988,196 | |||||
Series C 7.00% 7/1/43 | 1,000,000 | 995,430 | |||||
Series C 7.50% 7/1/53 | 1,000,000 | 1,000,010 | |||||
(St. Camillus Health System) | |||||||
Series A 5.00% 11/1/46 | 2,000,000 | 2,164,800 | |||||
Series A 5.00% 11/1/54 | 2,500,000 | 2,690,025 | |||||
Wisconsin Public Finance Authority | |||||||
(Rose Villa Project) | |||||||
Series A 144A 5.75% 11/15/44 # | 2,000,000 | 2,182,000 | |||||
Yamhill County Hospital Authority | |||||||
(Friendsview) | |||||||
Series A 5.00% 11/15/56 | 1,500,000 | 1,762,575 | |||||
343,081,008 |
89
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Housing Revenue Bond – 0.05% | |||||||
Independent Cities Finance Authority, California | |||||||
Series A 5.25% 5/15/44 | 750,000 | $ | 813,885 | ||||
813,885 | |||||||
Lease Revenue Bonds – 3.44% | |||||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(Lancer Plaza Project) | |||||||
5.875% 11/1/43 | 1,875,000 | 2,046,431 | |||||
Industrial Development Authority of Phoenix, Arizona | |||||||
5.125% 2/1/34 | 1,000,000 | 1,033,540 | |||||
5.375% 2/1/41 | 1,300,000 | 1,349,166 | |||||
Metropolitan Pier & Exposition Authority, Illinois | |||||||
(McCormick Place Expansion Project) | |||||||
Series A 4.00% 6/15/52 | 6,980,000 | 7,938,215 | |||||
Series A 5.00% 6/15/50 | 4,135,000 | 5,073,562 | |||||
Series A 5.00% 6/15/57 | 3,975,000 | 4,720,034 | |||||
New Jersey Economic Development Authority Special Facility | |||||||
Revenue | |||||||
Series WW 5.25% 6/15/30 | 5,000,000 | 5,869,000 | |||||
New Jersey Transportation Trust Fund Authority | |||||||
Series AA 4.00% 6/15/50 | 2,945,000 | 3,406,216 | |||||
(Federal Highway Reimbursement Revenue) | |||||||
Series A 5.00% 6/15/31 | 5,450,000 | 6,461,357 | |||||
(Transportation Program) | |||||||
Series AA 5.00% 6/15/25 | 1,000,000 | 1,170,070 | |||||
Series AA 5.00% 6/15/44 | 2,900,000 | 3,213,867 | |||||
New York Liberty Development Revenue | |||||||
(Class 3-3 World Trade Center Project) | |||||||
144A 7.25% 11/15/44 # | 8,000,000 | 8,965,360 | |||||
Phoenix, Arizona Civic Improvement | |||||||
(Junior Lien) | |||||||
Series A 5.00% 7/1/31 | 1,000,000 | 1,374,730 | |||||
Series A 5.00% 7/1/45 | 4,000,000 | 5,262,720 | |||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | |||||||
(Senior Obligation Group) | |||||||
Series B 5.00% 7/1/42 (AMT) | 2,625,000 | 2,704,512 | |||||
60,588,780 | |||||||
Local General Obligation Bonds – 1.71% | |||||||
Chicago, Illinois | |||||||
Series 2005D 5.50% 1/1/37 | 2,280,000 | 2,597,490 | |||||
Series 2005D 5.50% 1/1/40 | 3,000,000 | 3,413,610 |
90
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Local General Obligation Bonds (continued) | |||||||
Chicago, Illinois | |||||||
Series 2007E 5.50% 1/1/42 | 1,900,000 | $ | 2,157,678 | ||||
Series 2007F 5.50% 1/1/42 | 1,250,000 | 1,419,525 | |||||
Series A 5.50% 1/1/49 | 770,000 | 954,784 | |||||
Series C 5.00% 1/1/26 | 500,000 | 589,300 | |||||
Chicago, Illinois Board of Education | |||||||
Series A 144A 7.00% 12/1/46 # | 2,500,000 | 3,291,425 | |||||
Series G 5.00% 12/1/44 | 2,545,000 | 3,053,033 | |||||
Series H 5.00% 12/1/46 | 4,225,000 | 5,059,142 | |||||
Maricopa County, Arizona Special Health Care District | |||||||
Series D 4.00% 7/1/35 | 3,000,000 | 3,718,470 | |||||
Oregon State | |||||||
(Higher Education) | |||||||
Series F 4.00% 8/1/42 | 3,115,000 | 3,817,682 | |||||
30,072,139 | |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 2.39% | |||||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(California Baptist University Project) | |||||||
7.50% 11/1/41-21 § | 1,000,000 | 1,011,910 | |||||
Cumberland County Municipal Authority Revenue | |||||||
(Asbury Maryland Obligated Group) | |||||||
5.25% 1/1/27-22 § | 990,000 | 1,006,543 | |||||
5.25% 1/1/41-22 § | 180,000 | 183,008 | |||||
Cumberland County, Pennsylvania Municipal Authority Revenue | |||||||
(Asbury Pennsylvania Obligated Group) | |||||||
5.25% 1/1/32-22 § | 1,265,000 | 1,286,138 | |||||
District of Columbia Revenue | |||||||
(KIPP Charter School) | |||||||
6.00% 7/1/48-23 § | 1,450,000 | 1,603,018 | |||||
East Hempfield Township, Pennsylvania Industrial Development | |||||||
Authority | |||||||
(Student Services Income - Student Housing Project) | |||||||
5.00% 7/1/30-23 § | 1,000,000 | 1,086,880 | |||||
Foothill-Eastern Transportation Corridor Agency, California | |||||||
Series A 6.00% 1/15/49-24 § | 7,690,000 | 8,755,526 | |||||
Indiana Finance Authority Revenue | |||||||
(Marquette Project) | |||||||
5.00% 3/1/39-22 § | 1,250,000 | 1,279,862 | |||||
Kanawha, West Virginia | |||||||
(West Virginia University Foundation Project) | |||||||
6.75% 7/1/45-23 § | 2,500,000 | 2,790,700 |
91
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | |||||||
Martin County, Florida Health Facilities Authority Revenue | |||||||
(Martin Memorial Medical Center) | |||||||
5.50% 11/15/42-21 § | 1,000,000 | $ | 1,010,860 | ||||
Nampa Development Corporation, Idaho Revenue | |||||||
144A 5.00% 9/1/31-24 #, § | 2,940,000 | 3,420,955 | |||||
New Jersey Health Care Facilities Financing Authority Revenue | |||||||
(Barnabas Health Services) | |||||||
Series A 4.00% 7/1/26-22 § | 980,000 | 1,011,713 | |||||
North Texas Education Finance Revenue | |||||||
(Uplift Education) | |||||||
Series A 5.25% 12/1/47-22 § | 2,100,000 | 2,179,128 | |||||
Onondaga, New York Civic Development Revenue | |||||||
(St. Joseph’s Hospital Health Center Project) | |||||||
4.50% 7/1/32-22 § | 1,000,000 | 1,036,170 | |||||
Philadelphia, Pennsylvania Authority for Industrial Development | |||||||
Revenue | |||||||
(New Foundation Charter School Project) | |||||||
6.625% 12/15/41-22 § | 1,000,000 | 1,081,930 | |||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | |||||||
(AFCO Investors II Portfolio) | |||||||
144A 5.75% 10/1/31-22 (AMT) #, § | 3,925,000 | 4,155,123 | |||||
San Buenaventura, California Revenue | |||||||
(Community Memorial Health System) | |||||||
7.50% 12/1/41-21 § | 4,475,000 | 4,555,326 | |||||
Southwestern Illinois Development Authority Revenue | |||||||
(Memorial Group) | |||||||
7.125% 11/1/30-23 § | 1,420,000 | 1,630,203 | |||||
7.125% 11/1/43-23 § | 2,500,000 | 2,870,075 | |||||
41,955,068 | |||||||
Resource Recovery Revenue Bonds – 0.76% | |||||||
Blythe Township, Pennsylvania Solid Waste Authority Revenue | |||||||
7.75% 12/1/37 (AMT) | 3,000,000 | 3,594,150 | |||||
South Carolina Jobs-Economic Development Authority | |||||||
Educational Facilities Revenue | |||||||
(Last Step Recycling Project) | |||||||
Series A 144A 6.50% 6/1/51 (AMT) # | 1,500,000 | 1,576,020 | |||||
Union County, New Jersey Improvement Authority | |||||||
(Aries Linden, LLC Project) | |||||||
144A 6.75% 12/1/41 (AMT) # | 7,800,000 | 8,265,504 | |||||
13,435,674 |
92
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds – 10.91% | |||||||
Celebration Pointe, Florida Community Development District | |||||||
5.125% 5/1/45 | 1,915,000 | $ | 2,006,824 | ||||
Cherry Hill, Virginia Community Development Authority | |||||||
(Potomac Shores Project) | |||||||
144A 5.15% 3/1/35 # | 1,000,000 | 1,063,690 | |||||
144A 5.40% 3/1/45 # | 2,000,000 | 2,126,760 | |||||
City of Pueblo, Colorado Urban Renewal Authority Tax | |||||||
Increment Revenue | |||||||
(Evraz Project) | |||||||
Series A 144A 4.75% 12/1/45 # | 5,390,000 | 6,202,273 | |||||
Conley Road Transportation Development District, Missouri | |||||||
5.375% 5/1/47 | 5,200,000 | 5,417,724 | |||||
CPR Custodial Receipt | |||||||
(Taxable) | |||||||
Series 2021-1 144A 0.649% 1/1/45 # | 15,000,000 | 13,875,000 | |||||
Detroit, Michigan | |||||||
(Taxable) | |||||||
Series A 4.813% 6/15/20 ‡ | 7,391,131 | 6,190,072 | |||||
Dutchess County, New York Local Development Corporation | |||||||
Revenue | |||||||
(Anderson Center Services Inc. Project) | |||||||
6.00% 10/1/30 | 1,505,000 | 1,511,998 | |||||
Fountain Urban Renewal Authority, Colorado | |||||||
(Improvement - South Academy Highland) | |||||||
Series A 5.50% 11/1/44 | 3,750,000 | 3,994,650 | |||||
GDB Debt Recovery Authority of Puerto Rico | |||||||
(Taxable) | |||||||
7.50% 8/20/40 | 32,488,003 | 30,538,723 | |||||
Glen Cove, New York Local Economic Assistance | |||||||
(Garvies Point Public Improvement Project) | |||||||
Series A 5.00% 1/1/56 | 2,000,000 | 2,215,320 | |||||
Guam Government Business Privilege Tax Revenue | |||||||
Series F 4.00% 1/1/42 | 2,500,000 | 2,856,600 | |||||
Hickory Chase Community Authority Revenue, Ohio | |||||||
(Hickory Chase Project) | |||||||
Senior Series A 144A 5.00% 12/1/40 # | 1,410,000 | 1,548,081 | |||||
Juban Crossing Economic Development District, Louisiana | |||||||
(General Infrastructure Projects) | |||||||
Series C 144A 7.00% 9/15/44 # | 3,115,000 | 3,090,236 | |||||
(Road Projects) | |||||||
Series A 144A 7.00% 9/15/44 # | 1,960,000 | 1,944,418 |
93
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
Kansas City, Missouri Land Clearance Redevelopment Authority | |||||||
Revenue | |||||||
(Convention Centre Hotel Project - TIF Financing) | |||||||
Series B 144A 5.00% 2/1/40 # | 935,000 | $ | 1,020,524 | ||||
Las Vegas, Nevada Special Improvement District No 816 | |||||||
(Special Improvement District No. 816) | |||||||
3.00% 6/1/41 | 600,000 | 614,280 | |||||
3.125% 6/1/46 | 1,300,000 | 1,331,317 | |||||
Midtown Miami, Florida Community Development District | |||||||
(Parking Garage Project) | |||||||
Series A 5.00% 5/1/37 | 500,000 | 519,675 | |||||
Mobile, Alabama Improvement District | |||||||
(McGowin Park Project) | |||||||
Series A 5.25% 8/1/30 | 1,000,000 | 1,064,190 | |||||
Series A 5.50% 8/1/35 | 1,300,000 | 1,378,182 | |||||
Northampton County, Pennsylvania Industrial Development | |||||||
Authority | |||||||
(Route 33 Project) | |||||||
7.00% 7/1/32 | 2,155,000 | 2,310,095 | |||||
Prairie Center Metropolitan District No 3, Colorado | |||||||
Series A 144A 5.00% 12/15/41 # | 2,000,000 | 2,193,680 | |||||
Public Finance Authority Revenue, Wisconsin | |||||||
(American Dream @ Meadowlands Project) | |||||||
144A 7.00% 12/1/50 # | 5,065,000 | 5,824,750 | |||||
(Mclemore Hotel And Conference Center) | |||||||
Series A 144A 4.50% 6/1/56 # | 13,000,000 | 13,203,970 | |||||
Puerto Rico Sales Tax Financing Revenue | |||||||
(Restructured) | |||||||
Series A-1 4.75% 7/1/53 | 33,470,000 | 38,303,068 | |||||
Series A-1 5.00% 7/1/58 | 21,445,000 | 24,830,093 | |||||
Series A-2 4.784% 7/1/58 | 3,301,000 | 3,777,632 | |||||
Richmond Heights, Missouri Tax Increment & Transaction Sales | |||||||
Tax Revenue Improvement | |||||||
(Francis Place Redevelopment Project) | |||||||
5.625% 11/1/25 | 860,000 | 860,843 | |||||
St. Louis County, Missouri Industrial Development Authority | |||||||
(Manchester Ballas Community) | |||||||
Series A 144A 5.00% 9/1/38 # | 1,050,000 | 1,077,384 | |||||
Series A 144A 5.25% 9/1/45 # | 3,540,000 | 3,627,615 |
94
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
St. Louis, Missouri Industrial Development Authority Tax | |||||||
Increment Revenue Improvement | |||||||
(Grand Center Redevelopment Project) | |||||||
6.375% 12/1/25 | 510,000 | $ | 510,908 | ||||
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 | 4,783,519 | |||||
191,814,094 | |||||||
State General Obligation Bonds – 12.38% | |||||||
California State | |||||||
4.00% 3/1/36 | 12,475,000 | 15,201,161 | |||||
(Various Purpose) | |||||||
4.00% 3/1/37 | 2,340,000 | 2,838,701 | |||||
5.00% 8/1/27 | 5,000,000 | 6,107,000 | |||||
5.00% 10/1/28 | 5,000,000 | 6,483,550 | |||||
5.00% 11/1/30 | 7,000,000 | 9,498,090 | |||||
5.00% 11/1/34 | 4,390,000 | 5,847,085 | |||||
Commonwealth of Massachusetts | |||||||
Series B 5.00% 1/1/32 | 5,000,000 | 6,288,500 | |||||
Series D 4.00% 11/1/35 | 5,000,000 | 6,203,600 | |||||
Series D 4.00% 11/1/36 | 4,595,000 | 5,682,315 | |||||
Commonwealth of Puerto Rico | |||||||
Series A 8.00% 7/1/35 ‡ | 200,000 | 167,250 | |||||
(Public Improvement) | |||||||
Series A 5.00% 7/1/41 ‡ | 4,525,000 | 3,885,844 | |||||
Series A 5.125% 7/1/37 ‡ | 15,070,000 | 13,223,925 | |||||
Series A 5.25% 7/1/22 ‡ | 1,810,000 | 1,708,188 | |||||
Series A 5.25% 7/1/29 ‡ | 4,460,000 | 4,209,125 | |||||
Series A 5.25% 7/1/30 ‡ | 1,955,000 | 1,845,031 | |||||
Series A 5.25% 7/1/31 ‡ | 6,980,000 | 6,657,175 | |||||
Series A 5.375% 7/1/33 ‡ | 900,000 | 843,750 | |||||
Series A 5.50% 7/1/26 ‡ | 5,000,000 | 4,475,000 | |||||
Series A 5.50% 7/1/39 ‡ | 5,165,000 | 4,648,500 | |||||
Series A 5.75% 7/1/28 ‡ | 5,580,000 | 5,035,950 | |||||
Series A 5.75% 7/1/41 ‡ | 11,750,000 | 10,912,812 | |||||
Series A 6.00% 7/1/38 ‡ | 4,520,000 | 4,305,300 | |||||
Series A 8.00% 7/1/35 ‡ | 30,995,000 | 26,384,494 | |||||
Series C 6.00% 7/1/39 ‡ | 1,000 | 918 | |||||
Series C 6.00% 7/1/39 ‡ | 9,485,000 | 8,844,762 |
95
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
Georgia State | |||||||
(Federally Taxable) | |||||||
Series 2021-A 5.00% 7/1/32 | 5,000,000 | $ | 6,875,600 | ||||
Illinois State | |||||||
5.00% 1/1/28 | 1,190,000 | 1,389,349 | |||||
5.00% 5/1/36 | 1,710,000 | 1,883,137 | |||||
5.00% 11/1/36 | 2,245,000 | 2,611,743 | |||||
5.00% 2/1/39 | 2,180,000 | 2,385,792 | |||||
5.125% 12/1/29 | 1,310,000 | 1,603,925 | |||||
5.50% 5/1/39 | 6,000,000 | 7,732,800 | |||||
Series A 5.00% 10/1/30 | 2,000,000 | 2,481,240 | |||||
Series A 5.00% 12/1/34 | 2,625,000 | 3,145,669 | |||||
Series A 5.00% 4/1/38 | 2,805,000 | 2,963,258 | |||||
Series B 4.00% 11/1/35 | 2,000,000 | 2,320,900 | |||||
Series D 5.00% 11/1/28 | 4,700,000 | 5,742,319 | |||||
New Jersey State | |||||||
Series A 4.00% 6/1/31 | 2,080,000 | 2,600,146 | |||||
Ohio State | |||||||
(Infrastructure Improvement) | |||||||
Series A 5.00% 9/1/32 | 5,000,000 | 6,377,900 | |||||
Washington State | |||||||
(Various Purpose) | |||||||
Series C 5.00% 2/1/28 | 5,000,000 | 6,375,400 | |||||
217,787,204 | |||||||
Transportation Revenue Bonds – 3.65% | |||||||
Dallas, Texas Fort Worth International Airport | |||||||
(Dallas Fort Worth International Airport) | |||||||
Series B 5.00% 11/1/33 | 5,000,000 | 6,645,300 | |||||
Denver, Colorado Airport System Revenue | |||||||
Series A 5.00% 11/15/21 (AMT) | 55,000 | 55,543 | |||||
Kentucky Public Transportation Infrastructure Authority | |||||||
(1st Tier - Downtown Crossing) | |||||||
Series A 5.75% 7/1/49 | 1,800,000 | 1,971,954 | |||||
Series A 6.00% 7/1/53 | 1,290,000 | 1,418,110 | |||||
Long Beach, California Marina Revenue | |||||||
5.00% 5/15/40 | 1,000,000 | 1,107,100 | |||||
New York Transportation Development | |||||||
(Delta Airlines Inc. LaGuardia Airport Terminals C & D | |||||||
Redevelopment Project) | |||||||
4.375% 10/1/45 (AMT) | 10,200,000 | 12,119,130 | |||||
5.00% 10/1/40 (AMT) | 3,400,000 | 4,271,964 |
96
Principal | |||||||
amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Pennsylvania Turnpike Commission | |||||||
Series B 4.00% 12/1/51 | 5,000,000 | $ | 5,876,450 | ||||
Phoenix, Arizona Civic Improvement | |||||||
(Junior Lien) | |||||||
Series A 5.00% 7/1/40 | 30,000 | 34,849 | |||||
Port Beaumont, Texas Navigation District Dock & Wharf Facility | |||||||
Revenue | |||||||
(Jefferson Gulf Coast Energy Project) | |||||||
Series A 144A 2.75% 1/1/36 (AMT) # | 1,500,000 | 1,506,720 | |||||
Series A 144A 2.875% 1/1/41 (AMT) # | 1,750,000 | 1,756,633 | |||||
Series A 144A 3.00% 1/1/50 (AMT) # | 4,500,000 | 4,465,845 | |||||
Public Finance Authority Revenue, Wisconsin | |||||||
(Sky Harbour Capital LLC Aviation Facilities Project) | |||||||
4.25% 7/1/54 (AMT) | 3,000,000 | 3,074,730 | |||||
Riverside County, California Transportation Senior Lien | |||||||
Series A 5.75% 6/1/48 | 1,000,000 | 1,078,450 | |||||
South Jersey Port, New Jersey | |||||||
(Subordinated Marine Terminal Revenue) | |||||||
Series A 5.00% 1/1/49 | 1,110,000 | 1,334,109 | |||||
Series B 5.00% 1/1/48 (AMT) | 2,000,000 | 2,375,380 | |||||
Texas Private Activity Bond Surface Transportation Corporate | |||||||
Senior Lien | |||||||
(NTE Mobility Partners Segments 3 LLC Segment 3C Project) | |||||||
5.00% 6/30/58 (AMT) | 6,500,000 | 7,901,010 | |||||
(NTE Mobility) | |||||||
6.75% 6/30/43 (AMT) | 1,905,000 | 2,142,934 | |||||
7.00% 12/31/38 (AMT) | 1,335,000 | 1,509,231 | |||||
Virginia Small Business Financing Authority | |||||||
(Transform 66 P3 Project) | |||||||
5.00% 12/31/56 (AMT) | 2,975,000 | 3,566,281 | |||||
64,211,723 | |||||||
Water & Sewer Revenue Bonds – 2.04% | |||||||
Chicago, Illinois Waterworks Revenue | |||||||
(2nd Lien) | |||||||
5.00% 11/1/26 | 180,000 | 218,556 | |||||
5.00% 11/1/28 | 30,000 | 36,332 | |||||
Dominion, Colorado Water & Sanitation District Revenue | |||||||
6.00% 12/1/46 | 3,865,000 | 3,982,419 | |||||
Jefferson County, Alabama Sewer Revenue | |||||||
(Senior Lien-Warrants) | |||||||
Series A 5.50% 10/1/53 (AGM) | 2,500,000 | 2,797,200 |
97
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 | |||||||
(Sub Lien-Warrants) | |||||||
Series D 6.50% 10/1/53 | 14,000,000 | $ | 16,308,740 | ||||
Series D 7.00% 10/1/51 | 5,000,000 | 5,876,000 | |||||
Texas Water Development Board | |||||||
(Master Trust) | |||||||
Series B 5.00% 4/15/31 | 5,240,000 | 6,748,753 | |||||
35,968,000 | |||||||
Total Municipal Bonds (cost $1,586,428,999) | 1,752,959,583 | ||||||
Principal | |||||||
amount | |||||||
Short-Term Investments – 0.19% | |||||||
Variable Rate Demand Notes – 0.19%¤ | |||||||
Metropolitan Water District of Southern California | |||||||
Series A-2 0.01% 7/1/37 (SPA - TD Bank N.A.) | 2,000,000 | 2,000,000 | |||||
Mississippi Business Finance Corporation Gulf Opportunity Zone | |||||||
Industrial Development Revenue | |||||||
(Chevron U.S.A. Inc. Project) Series C 0.01% 11/1/35 | 1,045,000 | 1,045,000 | |||||
New Jersey Health Care Facilities Financing Authority Revenue | |||||||
(Virtua Health Services) Series C 0.01% 7/1/43 | 370,000 | 370,000 | |||||
Total Short-Term Investments (cost $3,415,000) | 3,415,000 | ||||||
Total Value of Securities–99.86% | |||||||
(cost $1,589,843,999) | $ | 1,756,374,583 |
° | 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, 2021, the aggregate value of Rule 144A securities was $464,693,842, which represents 26.42% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
= | 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. |
98
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. 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 descriptions. |
§ | 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 10 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, 2021. |
Summary of abbreviations: |
AGM – Insured by Assured Guaranty Municipal 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.
99
Statements of assets and liabilities | August 31, 2021 |
Delaware | |||||||||||
Delaware | Delaware | National High-Yield | |||||||||
Tax-Free | Tax-Free USA | Municipal Bond | |||||||||
USA Fund | Intermediate Fund | Fund | |||||||||
Assets: | |||||||||||
Investments, at value* | $ | 1,177,838,088 | $ | 1,266,463,240 | $ | 1,756,374,583 | |||||
Cash | 9,761,464 | 2,139,570 | 2,506,554 | ||||||||
Interest receivable | 9,857,304 | 11,289,952 | 14,948,780 | ||||||||
Receivable for fund shares sold | 2,912,431 | 2,549,351 | 5,202,563 | ||||||||
Other assets | 18,696 | 23,750 | – | ||||||||
Total Assets | 1,200,387,983 | 1,282,465,863 | 1,779,032,480 | ||||||||
Liabilities: | |||||||||||
Payable for securities purchased | 33,788,676 | 58,526,147 | 15,472,519 | ||||||||
Payable for fund shares redeemed | 2,190,139 | 1,266,719 | 2,586,403 | ||||||||
Investment management fees payable to | |||||||||||
affiliates | 371,927 | 329,086 | 671,685 | ||||||||
Other accrued expenses | 282,668 | 311,796 | 466,847 | ||||||||
Distribution fees payable to affiliates | 200,580 | 78,785 | 101,855 | ||||||||
Distribution payable | 194,767 | 314,340 | 927,735 | ||||||||
Dividend disbursing and transfer agent | |||||||||||
fees and expenses payable to affiliates | 8,180 | 8,817 | 12,665 | ||||||||
Audit and tax fees payable | 4,950 | 4,950 | 4,950 | ||||||||
Accounting and administration expenses | |||||||||||
payable to affiliates | 3,751 | 4,017 | 5,622 | ||||||||
Trustees’ fees and expenses payable to | |||||||||||
affiliates | 3,316 | 3,538 | 5,101 | ||||||||
Legal fees payable to affiliates | 2,835 | 3,025 | 4,361 | ||||||||
Reports and statements to shareholders | |||||||||||
expenses payable to affiliates | 1,416 | 1,486 | 2,137 | ||||||||
Total Liabilities | 37,053,205 | 60,852,706 | 20,261,880 | ||||||||
Total Net Assets | $ | 1,163,334,778 | $ | 1,221,613,157 | $ | 1,758,770,600 | |||||
Net Assets Consist of: | |||||||||||
Paid-in capital | $ | 1,042,445,039 | $ | 1,123,614,414 | $ | 1,587,938,934 | |||||
Total distributable earnings (loss) | 120,889,739 | 97,998,743 | 170,831,666 | ||||||||
Total Net Assets | $ | 1,163,334,778 | $ | 1,221,613,157 | $ | 1,758,770,600 |
100
Delaware | ||||||||||||
Delaware | Delaware | National High-Yield | ||||||||||
Tax-Free | Tax-Free USA | Municipal Bond | ||||||||||
USA Fund | Intermediate Fund | Fund | ||||||||||
Net Asset Value | ||||||||||||
Class A: | ||||||||||||
Net assets | $ | 944,054,089 | $ | 564,932,165 | $ | 247,541,793 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 75,153,105 | 44,728,795 | 20,562,954 | |||||||||
Net asset value per share | $ | 12.56 | $ | 12.63 | $ | 12.04 | ||||||
Sales charge | 4.50 | % | 2.75 | % | 4.50 | % | ||||||
Offering price per share, equal to net asset value per share / (1 - sales charge) | $ | 13.15 | $ | 12.99 | $ | 12.61 | ||||||
Class C: | ||||||||||||
Net assets | $ | 9,833,661 | $ | 7,497,144 | $ | 58,284,611 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 782,682 | 594,145 | 4,822,525 | |||||||||
Net asset value per share | $ | 12.56 | $ | 12.62 | $ | 12.09 | ||||||
Institutional Class: | ||||||||||||
Net assets | $ | 209,447,028 | $ | 649,183,848 | $ | 1,452,944,196 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 16,542,064 | 50,916,573 | 119,592,353 | |||||||||
Net asset value per share | $ | 12.66 | $ | 12.75 | $ | 12.15 | ||||||
____________________ | ||||||||||||
*Investments, at cost | $ | 1,069,580,171 | $ | 1,165,313,588 | $ | 1,589,843,999 |
See accompanying notes, which are an integral part of the financial statements.
101
Statements of operations | Year ended August 31, 2021 |
Delaware | |||||||||||||
Delaware | Delaware | National High-Yield | |||||||||||
Tax-Free | Tax-Free USA | Municipal Bond | |||||||||||
USA Fund | Intermediate Fund | Fund | |||||||||||
Investment Income: | |||||||||||||
Interest | $ | 34,611,201 | $ | 32,697,552 | $ | 69,253,951 | |||||||
Expenses: | |||||||||||||
Management fees | 4,951,365 | 4,815,322 | 7,673,228 | ||||||||||
Distribution expenses — Class A | 1,901,902 | 1,123,625 | 533,171 | ||||||||||
Distribution expenses — Class C | 96,434 | 97,760 | 617,889 | ||||||||||
Dividend disbursing and transfer agent fees and expenses | 720,250 | 753,513 | 1,244,714 | ||||||||||
Accounting and administration expenses | 191,442 | 198,918 | 284,563 | ||||||||||
Registration fees | 117,630 | 132,768 | 147,624 | ||||||||||
Legal fees | 87,784 | 91,740 | 84,160 | ||||||||||
Reports and statements to shareholders expenses | 72,608 | 73,473 | 80,380 | ||||||||||
Audit and tax fees | 60,261 | 59,597 | 43,765 | ||||||||||
Trustees’ fees and expenses | 38,451 | 40,168 | 64,176 | ||||||||||
Custodian fees | 29,830 | 30,188 | 28,180 | ||||||||||
Other | 55,596 | 71,444 | 84,018 | ||||||||||
8,323,553 | 7,488,516 | 10,885,868 | |||||||||||
Less expenses waived | (989,304 | ) | (1,257,530 | ) | (511,051 | ) | |||||||
Less waived distribution expenses — Class A | — | (449,450 | ) | — | |||||||||
Less expenses paid indirectly | (488 | ) | (383 | ) | (131 | ) | |||||||
Total operating expenses | 7,333,761 | 5,781,153 | 10,374,686 | ||||||||||
Net Investment Income | 27,277,440 | 26,916,399 | 58,879,265 | ||||||||||
Net Realized and Unrealized Gain (Loss): | |||||||||||||
Net realized gain on investments | 14,002,171 | 3,589,481 | 3,569,420 | ||||||||||
Net change in unrealized appreciation (depreciation) of investments | 36,359,907 | 23,578,495 | 113,554,681 | ||||||||||
Net Realized and Unrealized Gain | 50,362,078 | 27,167,976 | 117,124,101 | ||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 77,639,518 | $ | 54,084,375 | $ | 176,003,366 |
See accompanying notes, which are an integral part of the financial statements.
102
Statements of changes in net assets
Delaware Tax-Free USA Fund
Year ended | ||||||||
8/31/21 | 8/31/20 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 27,277,440 | $ | 19,835,808 | ||||
Net realized gain | 14,002,171 | 3,980,350 | ||||||
Net change in unrealized appreciation (depreciation) | 36,359,907 | (6,778,517 | ) | |||||
Net increase in net assets resulting from operations | 77,639,518 | 17,037,641 | ||||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (25,318,469 | ) | (16,057,427 | ) | ||||
Class C | (280,251 | ) | (377,485 | ) | ||||
Institutional Class | (6,065,860 | ) | (5,191,254 | ) | ||||
(31,664,580 | ) | (21,626,166 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 235,612,013 | 94,406,974 | ||||||
Class C | 3,297,954 | 2,492,529 | ||||||
Institutional Class | 109,204,466 | 65,805,952 | ||||||
Net assets from merger:1 | ||||||||
Class A | 328,299,539 | — | ||||||
Institutional Class | 5,996,641 | — | ||||||
Net asset value of shares issued upon reinvestment of | ||||||||
dividends and distributions: | ||||||||
Class A | 23,552,498 | 14,383,519 | ||||||
Class C | 270,943 | 329,893 | ||||||
Institutional Class | 5,567,596 | 4,750,966 | ||||||
711,801,650 | 182,169,833 |
103
Statements of changes in net assets
Delaware Tax-Free USA Fund
Year ended | ||||||||
8/31/21 | 8/31/20 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (159,410,262 | ) | $ | (99,923,072 | ) | ||
Class C | (5,008,138 | ) | (7,874,648 | ) | ||||
Institutional Class | (55,273,658 | ) | (66,849,145 | ) | ||||
(219,692,058 | ) | (174,646,865 | ) | |||||
Increase in net assets derived from capital share transactions | 492,109,592 | 7,522,968 | ||||||
Net Increase in Net Assets | 538,084,530 | 2,934,443 | ||||||
Net Assets: | ||||||||
Beginning of year | 625,250,248 | 622,315,805 | ||||||
End of year | $ | 1,163,334,778 | $ | 625,250,248 |
1 | See Note 7 in “Notes to financial statements.” |
See accompanying notes, which are an integral part of the financial statements.
104
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
Year ended | ||||||||
8/31/21 | 8/31/20 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 26,916,399 | $ | 16,218,407 | ||||
Net realized gain | 3,589,481 | 126,778 | ||||||
Net change in unrealized appreciation (depreciation) | 23,578,495 | (1,616,337 | ) | |||||
Net increase in net assets resulting from operations | 54,084,375 | 14,728,848 | ||||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (11,854,316 | ) | (3,184,081 | ) | ||||
Class C | (178,774 | ) | (370,025 | ) | ||||
Institutional Class | (14,883,309 | ) | (12,664,301 | ) | ||||
(26,916,399 | ) | (16,218,407 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 36,876,504 | 30,135,038 | ||||||
Class C | 1,380,348 | 1,791,499 | ||||||
Institutional Class | 234,730,547 | 145,582,678 | ||||||
Net assets from merger:1 | ||||||||
Class A | 470,834,974 | — | ||||||
Institutional Class | 18,475,967 | — | ||||||
Net asset value of shares issued upon reinvestment of | ||||||||
dividends and distributions: | ||||||||
Class A | 10,426,299 | 2,926,566 | ||||||
Class C | 173,341 | 333,101 | ||||||
Institutional Class | 12,629,448 | 10,253,302 | ||||||
785,527,428 | 191,022,184 |
105
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
Year ended | ||||||||
8/31/21 | 8/31/20 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (71,110,681 | ) | $ | (50,173,924 | ) | ||
Class C | (6,225,744 | ) | (13,003,690 | ) | ||||
Institutional Class | (85,471,965 | ) | (101,023,651 | ) | ||||
(162,808,390 | ) | (164,201,265 | ) | |||||
Increase in net assets derived from capital share transactions | 622,719,038 | 26,820,919 | ||||||
Net Increase in Net Assets | 649,887,014 | 25,331,360 | ||||||
Net Assets: | ||||||||
Beginning of year | 571,726,143 | 546,394,783 | ||||||
End of year | $ | 1,221,613,157 | $ | 571,726,143 |
1 | See Note 7 in “Notes to financial statements.” |
See accompanying notes, which are an integral part of the financial statements.
106
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
Year ended | ||||||||||
8/31/21 | 8/31/20 | |||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||||
Net investment income | $ | 58,879,265 | $ | 57,603,224 | ||||||
Net realized gain | 3,569,420 | 13,180,732 | ||||||||
Net change in unrealized appreciation (depreciation) | 113,554,681 | (65,116,746 | ) | |||||||
Net increase in net assets resulting from operations | 176,003,366 | 5,667,210 | ||||||||
Dividends and Distributions to Shareholders from: | ||||||||||
Distributable earnings: | ||||||||||
Class A | (7,978,592 | ) | (7,762,606 | ) | ||||||
Class C | (1,879,208 | ) | (2,642,753 | ) | ||||||
Institutional Class | (50,482,911 | ) | (46,586,746 | ) | ||||||
(60,340,711 | ) | (56,992,105 | ) | |||||||
Capital Share Transactions: | ||||||||||
Proceeds from shares sold: | ||||||||||
Class A | 74,301,021 | 64,182,912 | ||||||||
Class C | 9,587,231 | 10,269,059 | ||||||||
Institutional Class | 415,992,713 | 340,902,541 | ||||||||
Net asset value of shares issued upon reinvestment of | ||||||||||
dividends and distributions: | ||||||||||
Class A | 7,109,227 | 7,046,701 | ||||||||
Class C | 1,805,203 | 2,408,413 | ||||||||
Institutional Class | 41,321,516 | 37,810,611 | ||||||||
550,116,911 | 462,620,237 |
107
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
Year ended | ||||||||||
8/31/21 | 8/31/20 | |||||||||
Capital Share Transactions (continued): | ||||||||||
Cost of shares redeemed: | ||||||||||
Class A | $ | (31,938,137 | ) | $ | (88,787,279 | ) | ||||
Class C | (26,908,717 | ) | (31,832,862 | ) | ||||||
Institutional Class | (194,917,161 | ) | (385,626,313 | ) | ||||||
(253,764,015 | ) | (506,246,454 | ) | |||||||
Increase (decrease) in net assets derived from capital share | ||||||||||
transactions | 296,352,896 | (43,626,217 | ) | |||||||
Net Increase (Decrease) in Net Assets | 412,015,551 | (94,951,112 | ) | |||||||
Net Assets: | ||||||||||
Beginning of year | 1,346,755,049 | 1,441,706,161 | ||||||||
End of year | $ | 1,758,770,600 | $ | 1,346,755,049 |
See accompanying notes, which are an integral part of the financial statements.
108
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 | Calculated using average shares outstanding. |
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.
110
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 11.94 | $ | 11.96 | $ | 11.44 | $ | 11.70 | $ | 12.22 | |||||||||||
0.36 | 0.38 | 0.41 | 0.42 | 0.43 | ||||||||||||||||
0.70 | 0.01 | 0.52 | (0.26 | ) | (0.40 | ) | ||||||||||||||
1.06 | 0.39 | 0.93 | 0.16 | 0.03 | ||||||||||||||||
(0.36 | ) | (0.38 | ) | (0.41 | ) | (0.42 | ) | (0.43 | ) | |||||||||||
(0.08 | ) | (0.03 | ) | — | 2 | — | (0.12 | ) | ||||||||||||
(0.44 | ) | (0.41 | ) | (0.41 | ) | (0.42 | ) | (0.55 | ) | |||||||||||
$ | 12.56 | $ | 11.94 | $ | 11.96 | $ | 11.44 | $ | 11.70 | |||||||||||
9.03% | 3.44% | 8.35% | 1.44% | 0.41% | ||||||||||||||||
$ | 944,054 | $ | 478,671 | $ | 472,153 | $ | 481,117 | $ | 415,314 | |||||||||||
0.82% | 0.81% | 0.81% | 0.81% | 0.81% | ||||||||||||||||
0.92% | 0.95% | 0.95% | 0.96% | 0.96% | ||||||||||||||||
2.84% | 3.24% | 3.55% | 3.66% | 3.71% | ||||||||||||||||
2.74% | 3.10% | 3.41% | 3.51% | 3.56% | ||||||||||||||||
40% | 77% | 43% | 42% | 33% |
111
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 | Calculated using average shares outstanding. |
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.
112
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 11.94 | $ | 11.96 | $ | 11.44 | $ | 11.70 | $ | 12.22 | |||||||||||
0.26 | 0.29 | 0.32 | 0.34 | 0.34 | ||||||||||||||||
0.70 | 0.01 | 0.52 | (0.26 | ) | (0.40 | ) | ||||||||||||||
0.96 | 0.30 | 0.84 | 0.08 | (0.06 | ) | |||||||||||||||
(0.26 | ) | (0.29 | ) | (0.32 | ) | (0.34 | ) | (0.34 | ) | |||||||||||
(0.08 | ) | (0.03 | ) | — | 2 | — | (0.12 | ) | ||||||||||||
(0.34 | ) | (0.32 | ) | (0.32 | ) | (0.34 | ) | (0.46 | ) | |||||||||||
$ | 12.56 | $ | 11.94 | $ | 11.96 | $ | 11.44 | $ | 11.70 | |||||||||||
8.22% | 2.66% | 7.55% | 0.68% | (0.35% | ) | |||||||||||||||
$ | 9,834 | $ | 10,778 | $ | 16,051 | $ | 18,808 | $ | 27,397 | |||||||||||
1.57% | 1.56% | 1.56% | 1.56% | 1.56% | ||||||||||||||||
1.67% | 1.70% | 1.70% | 1.71% | 1.71% | ||||||||||||||||
2.09% | 2.49% | 2.80% | 2.91% | 2.96% | ||||||||||||||||
1.99% | 2.35% | 2.66% | 2.76% | 2.81% | ||||||||||||||||
40% | 77% | 43% | 42% | 33% |
113
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 | Calculated using average shares outstanding. |
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.
114
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 12.03 | $ | 12.05 | $ | 11.52 | $ | 11.79 | $ | 12.31 | |||||||||||
0.39 | 0.41 | 0.44 | 0.45 | 0.46 | ||||||||||||||||
0.71 | 0.01 | 0.53 | (0.27 | ) | (0.40 | ) | ||||||||||||||
1.10 | 0.42 | 0.97 | 0.18 | 0.06 | ||||||||||||||||
(0.39 | ) | (0.41 | ) | (0.44 | ) | (0.45 | ) | (0.46 | ) | |||||||||||
(0.08 | ) | (0.03 | ) | — | 2 | — | (0.12 | ) | ||||||||||||
(0.47 | ) | (0.44 | ) | (0.44 | ) | (0.45 | ) | (0.58 | ) | |||||||||||
$ | 12.66 | $ | 12.03 | $ | 12.05 | $ | 11.52 | $ | 11.79 | |||||||||||
9.34% | 3.70% | 8.68% | 1.61% | 0.68% | ||||||||||||||||
$ | 209,447 | $ | 135,801 | $ | 134,112 | $ | 77,396 | $ | 62,872 | |||||||||||
0.57% | 0.56% | 0.56% | 0.56% | 0.56% | ||||||||||||||||
0.67% | 0.70% | 0.70% | 0.71% | 0.71% | ||||||||||||||||
3.09% | 3.49% | 3.80% | 3.91% | 3.96% | ||||||||||||||||
2.99% | 3.35% | 3.66% | 3.76% | 3.81% | ||||||||||||||||
40% | 77% | 43% | 42% | 33% |
115
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 | Calculated using average shares outstanding. |
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.
116
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 12.26 | $ | 12.28 | $ | 11.76 | $ | 12.06 | $ | 12.38 | |||||||||||
0.33 | 0.35 | 0.37 | 0.37 | 0.35 | ||||||||||||||||
0.37 | (0.02 | ) | 0.52 | (0.30 | ) | (0.32 | ) | |||||||||||||
0.70 | 0.33 | 0.89 | 0.07 | 0.03 | ||||||||||||||||
(0.33 | ) | (0.35 | ) | (0.37 | ) | (0.37 | ) | (0.35 | ) | |||||||||||
— | — | — | — | — | 2 | |||||||||||||||
(0.33 | ) | (0.35 | ) | (0.37 | ) | (0.37 | ) | (0.35 | ) | |||||||||||
$ | 12.63 | $ | 12.26 | $ | 12.28 | $ | 11.76 | $ | 12.06 | |||||||||||
5.79% | 2.76% | 7.71% | 0.57% | 0.35% | ||||||||||||||||
$ | 564,932 | $ | 106,135 | $ | 123,691 | $ | 136,653 | $ | 164,154 | |||||||||||
0.65% | 0.65% | 0.65% | 0.71% | 0.75% | ||||||||||||||||
0.88% | 0.91% | 0.91% | 0.92% | 0.93% | ||||||||||||||||
2.64% | 2.87% | 3.11% | 3.10% | 2.92% | ||||||||||||||||
2.41% | 2.61% | 2.85% | 2.89% | 2.74% | ||||||||||||||||
23% | 27% | 25% | 32% | 26% |
117
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 | Calculated using average shares outstanding. |
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.
118
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 12.25 | $ | 12.27 | $ | 11.75 | $ | 12.05 | $ | 12.37 | |||||||||||
0.23 | 0.24 | 0.27 | 0.27 | 0.25 | ||||||||||||||||
0.37 | (0.02 | ) | 0.52 | (0.30 | ) | (0.32 | ) | |||||||||||||
0.60 | 0.22 | 0.79 | (0.03 | ) | (0.07 | ) | ||||||||||||||
(0.23 | ) | (0.24 | ) | (0.27 | ) | (0.27 | ) | (0.25 | ) | |||||||||||
— | — | — | — | — | 2 | |||||||||||||||
(0.23 | ) | (0.24 | ) | (0.27 | ) | (0.27 | ) | (0.25 | ) | |||||||||||
$ | 12.62 | $ | 12.25 | $ | 12.27 | $ | 11.75 | $ | 12.05 | |||||||||||
4.90% | 1.89% | 6.81% | (0.28% | ) | (0.50% | ) | ||||||||||||||
$ | 7,497 | $ | 11,864 | $ | 22,874 | $ | 28,002 | $ | 40,402 | |||||||||||
1.50% | 1.50% | 1.50% | 1.56% | 1.60% | ||||||||||||||||
1.63% | 1.66% | 1.66% | 1.67% | 1.68% | ||||||||||||||||
1.79% | 2.02% | 2.26% | 2.25% | 2.07% | ||||||||||||||||
1.66% | 1.86% | 2.10% | 2.14% | 1.99% | ||||||||||||||||
23% | 27% | 25% | 32% | 26% |
119
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 | Calculated using average shares outstanding. |
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.
120
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 12.38 | $ | 12.40 | $ | 11.87 | $ | 12.17 | $ | 12.50 | |||||||||||
0.35 | 0.37 | 0.39 | 0.39 | 0.37 | ||||||||||||||||
0.37 | (0.02 | ) | 0.53 | (0.30 | ) | (0.33 | ) | |||||||||||||
0.72 | 0.35 | 0.92 | 0.09 | 0.04 | ||||||||||||||||
(0.35 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | (0.37 | ) | |||||||||||
— | — | — | — | — | 2 | |||||||||||||||
(0.35 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | (0.37 | ) | |||||||||||
$ | 12.75 | $ | 12.38 | $ | 12.40 | $ | 11.87 | $ | 12.17 | |||||||||||
5.92 | % | 2.92 | % | 7.92% | 0.75% | 0.44% | ||||||||||||||
$ | 649,184 | $ | 453,727 | $ | 399,830 | $ | 377,445 | $ | 369,443 | |||||||||||
0.50 | % | 0.50 | % | 0.50% | 0.56% | 0.60% | ||||||||||||||
0.63 | % | 0.66 | % | 0.66% | 0.67% | 0.68% | ||||||||||||||
2.79 | % | 3.02 | % | 3.26% | 3.25% | 3.07% | ||||||||||||||
2.66 | % | 2.86 | % | 3.10% | 3.14% | 2.99% | ||||||||||||||
23 | % | 27 | % | 25% | 32% | 26% |
121
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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
122
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 11.15 | $ | 11.48 | $ | 11.00 | $ | 11.05 | $ | 11.42 | |||||||||||
0.42 | 0.44 | 0.46 | 0.46 | 0.44 | ||||||||||||||||
0.91 | (0.33 | ) | 0.48 | (0.05 | ) | (0.37 | ) | |||||||||||||
1.33 | 0.11 | 0.94 | 0.41 | 0.07 | ||||||||||||||||
(0.42 | ) | (0.44 | ) | (0.46 | ) | (0.46 | ) | (0.44 | ) | |||||||||||
(0.02 | ) | — | — | — | — | |||||||||||||||
(0.44 | ) | (0.44 | ) | (0.46 | ) | (0.46 | ) | (0.44 | ) | |||||||||||
$ | 12.04 | $ | 11.15 | $ | 11.48 | $ | 11.00 | $ | 11.05 | |||||||||||
12.12% | 1.06% | 8.81% | 3.80% | 0.72% | ||||||||||||||||
$ | 247,542 | $ | 182,214 | $ | 208,549 | $ | 200,493 | $ | 190,211 | |||||||||||
0.85% | 0.85% | 0.85% | 0.85% | 0.85% | ||||||||||||||||
0.88% | 0.91% | 0.90% | 0.91% | 0.94% | ||||||||||||||||
3.65% | 3.99% | 4.22% | 4.19% | 4.02% | ||||||||||||||||
3.62% | 3.93% | 4.17% | 4.13% | 3.93% | ||||||||||||||||
16% | 44% | 33% | 19% | 27% |
123
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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
124
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 11.20 | $ | 11.52 | $ | 11.04 | $ | 11.09 | $ | 11.47 | |||||||||||
0.33 | 0.36 | 0.38 | 0.38 | 0.36 | ||||||||||||||||
0.91 | (0.32 | ) | 0.48 | (0.05 | ) | (0.38 | ) | |||||||||||||
1.24 | 0.04 | 0.86 | 0.33 | (0.02 | ) | |||||||||||||||
(0.33 | ) | (0.36 | ) | (0.38 | ) | (0.38 | ) | (0.36 | ) | |||||||||||
(0.02 | ) | – | – | – | – | |||||||||||||||
(0.35 | ) | (0.36 | ) | (0.38 | ) | (0.38 | ) | (0.36 | ) | |||||||||||
$ | 12.09 | $ | 11.20 | $ | 11.52 | $ | 11.04 | $ | 11.09 | |||||||||||
11.25% | 0.41% | 7.98% | 3.03% | (0.11% | ) | |||||||||||||||
$ | 58,285 | $ | 68,993 | $ | 91,184 | $ | 92,155 | $ | 97,974 | |||||||||||
1.60% | 1.60% | 1.60% | 1.60% | 1.60% | ||||||||||||||||
1.63% | 1.66% | 1.65% | 1.66% | 1.69% | ||||||||||||||||
2.90% | 3.24% | 3.47% | 3.44% | 3.27% | ||||||||||||||||
2.87% | 3.18% | 3.42% | 3.38% | 3.18% | ||||||||||||||||
16% | 44% | 33% | 19% | 27% |
125
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 |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
126
Year ended | ||||||||||||||||||||
8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | 8/31/17 | ||||||||||||||||
$ | 11.26 | $ | 11.58 | $ | 11.10 | $ | 11.15 | $ | 11.53 | |||||||||||
0.45 | 0.47 | 0.49 | 0.49 | 0.47 | ||||||||||||||||
0.91 | (0.32 | ) | 0.48 | (0.05 | ) | (0.38 | ) | |||||||||||||
1.36 | 0.15 | 0.97 | 0.44 | 0.09 | ||||||||||||||||
(0.45 | ) | (0.47 | ) | (0.49 | ) | (0.49 | ) | (0.47 | ) | |||||||||||
(0.02 | ) | – | – | – | – | |||||||||||||||
(0.47 | ) | (0.47 | ) | (0.49 | ) | (0.49 | ) | (0.47 | ) | |||||||||||
$ | 12.15 | $ | 11.26 | $ | 11.58 | $ | 11.10 | $ | 11.15 | |||||||||||
12.32% | 1.44% | 9.03% | 4.07% | 0.92% | ||||||||||||||||
$ | 1,452,944 | $ | 1,095,548 | $ | 1,141,973 | $ | 1,017,167 | $ | 932,716 | |||||||||||
0.60% | 0.60% | 0.60% | 0.60% | 0.60% | ||||||||||||||||
0.63% | 0.66% | 0.65% | 0.66% | 0.69% | ||||||||||||||||
3.90% | 4.24% | 4.47% | 4.44% | 4.27% | ||||||||||||||||
3.87% | 4.18% | 4.42% | 4.38% | 4.18% | ||||||||||||||||
16% | 44% | 33% | 19% | 27% |
127
Notes to financial statements | ||
Delaware Funds by Macquarie® national tax-free funds | August 31, 2021 |
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. There is no front-end sales charge when you purchase $250,000 or more of Class A shares. However, if Delaware Distributors, L.P. (DDLP) paid your financial intermediary a commission on your purchase of $1,000,000 or more of Class A shares, for shares of Delaware National High-Yield Municipal Bond Fund prior to December 2, 2019 or for shares of Delaware Tax-Free USA Fund prior to July 1, 2020, you will have to pay a limited contingent deferred sales charge (Limited CDSC) of 1.00% if you redeem these shares within the first year after your purchase and 0.50% if you redeem shares within the second year or for shares of Delaware Tax-Free USA Intermediate Fund prior to December 2, 2019, you will have to pay a Limited CDSC of 0.75% if you redeem these shares within the first year after your purchase, unless a specific waiver of the Limited CDSC applies. If DDLP paid your financial intermediary a commission on your purchase of $250,000 or more of Class A shares, for shares of Delaware National High-Yield Municipal Bond Fund on or after December 2, 2019 or for shares of Delaware Tax-Free USA Fund on or after July 1, 2020, you will have to pay a Limited CDSC of 1.00% if you redeem these shares within the first 18 months after your purchase or for shares of Delaware Tax-Free USA Intermediate Fund on or after December 2, 2019, you will have to pay a Limited CDSC of 0.75% if you redeem these shares within the first year after your purchase; unless a specific waiver of the Limited CDSC applies. Class C shares are sold with a contingent deferred sales charge 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
128
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 the Trust’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Board.
Federal Income Taxes – No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the year ended August 31, 2021, and for all open tax years (years ended August 31, 2018–August 31, 2020), 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, 2021, 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. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Each Fund declares dividends daily from net investment income and pays the
129
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
1. Significant Accounting Policies (continued) dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” There were no such earnings credits for the year ended August 31, 2021.
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, 2021, each Fund earned the following amounts under this arrangement:
Fund | Earnings Credits | ||||
Delaware Tax-Free USA Fund | $ | 488 | |||
Delaware Tax-Free USA Intermediate Fund | 383 | ||||
Delaware National High-Yield Municipal Bond Fund | 131 |
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 National | ||||||
Delaware Tax-Free | Delaware Tax-Free USA | High-Yield | ||||
USA Fund | Intermediate Fund | 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 excess of $2.5 billion | 0.4250% | 0.4250% | 0.4250% |
DMC has contractually agreed to waive all or a portion, if any, of its management fee and/or pay/reimburse expenses (excluding any distribution and service (12b-1) fees, acquired fund fees and expenses, taxes, interest, 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 from September 1, 2020 through August 31, 2021.* These expense waivers and reimbursements may
130
only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
Operating expense | ||
limitation as | ||
a percentage | ||
of average | ||
Fund | 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, 2021, each Fund was charged for these services as follows:
Fund | Fees | ||
Delaware Tax-Free USA Fund | $ | 36,541 | |
Delaware Tax-Free USA Intermediate Fund | 38,160 | ||
Delaware National High-Yield Municipal Bond Fund | 56,586 |
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; 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, 2021, each Fund was charged for these services as follows:
Fund | Fees | ||
Delaware Tax-Free USA Fund | $ | 80,699 | |
Delaware Tax-Free USA Intermediate Fund | 84,720 | ||
Delaware National High-Yield Municipal Bond Fund | 132,241 |
Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to each Fund. Sub-transfer agency fees are paid by each Fund and are also included on the “Statements of operations” under
131
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
“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, 2020 through August 31, 2021.* 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, 2021, 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 | $ | 33,778 | |
Delaware Tax-Free USA Intermediate Fund | 35,290 | ||
Delaware National High-Yield Municipal Bond Fund | 48,665 |
For the year ended August 31, 2021, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Fund | Commissions | ||
Delaware Tax-Free USA Fund | $ | 29,845 | |
Delaware Tax-Free USA Intermediate Fund | 11,386 | ||
Delaware National High-Yield Municipal Bond Fund | 21,455 |
132
For the year ended August 31, 2021, 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 | $ | 732 | $ | 92 | ||||
Delaware Tax-Free USA Intermediate Fund | 730 | 245 | ||||||
Delaware National High-Yield Municipal Bond Fund | 1 | 3,252 |
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, 2021, were executed by each Fund pursuant to procedures adopted by the Board 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 Board reviews a report related to the Funds’ compliance with the procedures adopted by the Board. Pursuant to these procedures, for the year ended August 31, 2021, the following Funds engaged in Rule 17a-7 securities purchases and securities sales, as follows:
Purchases | Sales | Net realized gain (loss) | ||||||||||
Delaware Tax-Free USA Fund | $ | 122,252,341 | $ | 102,972,898 | $ | (896,553 | ) | |||||
Delaware Tax-Free USA | ||||||||||||
Intermediate Fund | 84,888,440 | 80,493,144 | (543,615 | ) | ||||||||
Delaware National High-Yield | ||||||||||||
Municipal Bond Fund | 79,761,361 | 69,294,213 | 599,132 |
* | The aggregate contractual waiver period covering this report is from December 27, 2019 through December 29, 2021. |
3. Investments
For the year ended August 31, 2021, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Fund | Purchases | Sales | ||||
Delaware Tax-Free USA Fund | $ | 526,181,277 | $ | 368,780,719 | ||
Delaware Tax-Free USA Intermediate Fund | 419,676,105 | 224,370,007 | ||||
Delaware National High-Yield Municipal Bond Fund | 550,597,963 | 238,093,414 |
133
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, 2021, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes for each Fund were as follows:
Aggregate | Aggregate | ||||||||||||
unrealized | unrealized | Net unrealized | |||||||||||
Cost of | appreciation | depreciation | appreciation | ||||||||||
Fund | investments | of investments | of investments | of investments | |||||||||
Delaware Tax-Free | |||||||||||||
USA Fund | $ | 1,071,354,395 | $ | 112,344,100 | $ | (5,860,407 | ) | $ | 106,483,693 | ||||
Delaware Tax-Free | |||||||||||||
USA Intermediate | |||||||||||||
Fund | 1,165,326,134 | 104,343,509 | (3,206,403 | ) | 101,137,106 | ||||||||
Delaware National | |||||||||||||
High-Yield | |||||||||||||
Municipal Bond | |||||||||||||
Fund | 1,589,101,649 | 190,637,171 | (23,364,237 | ) | 167,272,934 |
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) |
134
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, 2021:
Delaware Tax-Free USA Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 1,151,598,088 | |||
Short-Term Investments | 26,240,000 | ||||
Total Value of Securities | $ | 1,177,838,088 |
135
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
3. Investments (continued)
Delaware Tax-Free USA Intermediate Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 1,255,333,240 | |||
Short-Term Investments | 11,130,000 | ||||
Total Value of Securities | $ | 1,266,463,240 |
Delaware National High-Yield Municipal Bond Fund | |||||||||
Level 2 | Level 3 | Total | |||||||
Securities | |||||||||
Assets: | |||||||||
Municipal Bonds | $ | 1,752,857,303 | $ | 102,280 | $ | 1,752,959,583 | |||
Short-Term Investments | 3,415,000 | — | 3,415,000 | ||||||
Total Value of Securities | $ | 1,756,272,303 | $ | 102,280 | $ | 1,756,374,583 |
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to each 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 each 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 are not considered significant to each Fund’s net assets at the end of the year.
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, 2021 and 2020 were as follows:
Long-term | ||||||||||||
Tax-exempt | Ordinary | capital | ||||||||||
income | income | gains | Total | |||||||||
Year ended August 31, 2021: | ||||||||||||
Delaware Tax-Free USA Fund | $ | 26,906,497 | $ | 370,943 | $ | 4,387,140 | $ | 31,664,580 | ||||
Delaware Tax-Free USA Intermediate Fund | 26,905,589 | 10,810 | — | 26,916,399 | ||||||||
Delaware National High-Yield Municipal | ||||||||||||
Bond Fund | 56,883,957 | 1,187,337 | 2,269,417 | 60,340,711 |
136
Long-term | ||||||||||||
Tax-exempt | Ordinary | capital | ||||||||||
income | income | 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 |
5. Components of Net Assets on a Tax Basis
As of August 31, 2021, the components of net assets on a tax basis were as follows:
Delaware National | |||||||||||||||||||
Delaware Tax-Free | Delaware Tax-Free USA | High-Yield | |||||||||||||||||
USA Fund | Intermediate Fund | Municipal Bond Fund | |||||||||||||||||
Shares of beneficial interest | $ | 1,042,445,039 | $ | 1,123,614,414 | $ | 1,587,938,934 | |||||||||||||
Undistributed ordinary | |||||||||||||||||||
income | 4,827,256 | — | 3,638,473 | ||||||||||||||||
Undistributed tax-exempt | |||||||||||||||||||
income | 129,293 | 281,229 | 847,994 | ||||||||||||||||
Undistributed long-term | |||||||||||||||||||
capital gains | 9,644,264 | — | — | ||||||||||||||||
Distributions payable | (194,767 | ) | (314,340 | ) | (927,735 | ) | |||||||||||||
Capital loss carryforwards | — | (3,105,252 | ) | * | — | ||||||||||||||
Unrealized appreciation of | |||||||||||||||||||
investments | 106,483,693 | 101,137,106 | 167,272,934 | ||||||||||||||||
Net assets | $ | 1,163,334,778 | $ | 1,221,613,157 | $ | 1,758,770,600 |
* | A portion of the Fund’s capital loss carryforward is subject to limitation under the Internal Revenue Code and related regulations. |
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 discount and premium on debt instruments, if applicable.
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. At August 31, 2021, Delaware Tax-Free USA Intermediate Fund adjustments were to decrease distributable earnings and increase paid-in capital in excess of par by $4,996,050 due to capital loss carryforward from merger. Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund had no reclassifications.
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Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
5. Components of Net Assets on a Tax Basis (continued)
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. At August 31, 2021, Delaware Tax-Free USA Intermediate Fund utilized $3,602,027 of capital loss carryforwards.
At August 31, 2021, 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 | $ | 3,105,252 | $— | $ | 3,105,252 |
At August 31, 2021, there were no capital loss carryforwards for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund.
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6. Capital Shares
Transactions in capital shares were as follows:
Delaware Tax-Free | Delaware Tax-Free USA | Delaware National High-Yield | |||||||||||||||||
USA Fund | Intermediate Fund | Municipal Bond Fund | |||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||
8/31/21 | 8/31/20 | 8/31/21 | 8/31/20 | 8/31/21 | 8/31/20 | ||||||||||||||
Shares sold: | |||||||||||||||||||
Class A | 19,110,045 | 8,128,109 | 2,950,551 | 2,507,418 | 6,364,930 | 5,760,481 | |||||||||||||
Class C | 267,155 | 209,130 | 110,949 | 148,655 | 820,318 | 909,664 | |||||||||||||
Institutional Class | 8,792,678 | 5,517,306 | 18,574,271 | 11,945,089 | 35,382,590 | 30,588,566 | |||||||||||||
Shares from merger:1 | |||||||||||||||||||
Class A | 27,065,090 | — | 37,970,562 | — | — | — | |||||||||||||
Institutional Class | 490,723 | — | 1,475,716 | — | — | — | |||||||||||||
Shares issued upon reinvestment of dividends and distributions: | |||||||||||||||||||
Class A | 1,919,829 | 1,237,423 | 833,095 | 243,247 | 610,519 | 640,413 | |||||||||||||
Class C | 22,237 | 28,406 | 13,956 | 27,722 | 155,294 | 218,235 | |||||||||||||
Institutional Class | 450,802 | 406,363 | 1,003,154 | 844,472 | 3,517,918 | 3,406,052 | |||||||||||||
58,118,559 | 15,526,737 | 62,932,254 | 15,716,603 | 46,851,569 | 41,523,411 | ||||||||||||||
Shares redeemed: | |||||||||||||||||||
Class A | (13,023,321 | ) | (8,760,862 | ) | (5,681,539 | ) | (4,166,754 | ) | (2,749,864 | ) | (8,235,396 | ) | |||||||
Class C | (409,050 | ) | (677,015 | ) | (498,982 | ) | (1,072,043 | ) | (2,314,658 | ) | (2,879,671 | ) | |||||||
Institutional Class | (4,478,240 | ) | (5,767,214 | ) | (6,787,631 | ) | (8,385,796 | ) | (16,638,499 | ) | (35,257,417 | ) | |||||||
(17,910,611 | ) | (15,205,091 | ) | (12,968,152 | ) | (13,624,593 | ) | (21,703,021 | ) | (46,372,484 | ) | ||||||||
Net increase | |||||||||||||||||||
(decrease) | 40,207,948 | 321,646 | 49,964,102 | 2,092,010 | 25,148,548 | (4,849,073 | ) |
1 | See Note 7. |
139
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
6. Capital Shares (continued)
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables above and on the “Statements of changes in net assets.” For the years ended August 31, 2021 and 2020, each Fund had the following exchange transactions:
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||
Institutional | Institutional | |||||||||||||||||
Class A | Class C | Class | Class A | Class | ||||||||||||||
Shares | Shares | Shares | Shares | Shares | Value | |||||||||||||
Delaware Tax-Free USA Fund | ||||||||||||||||||
Year ended | ||||||||||||||||||
8/31/21 | 36,729 | 24,482 | — | 24,518 | 36,473 | $ | 761,979 | |||||||||||
8/31/20 | 118,464 | 60,517 | — | 60,554 | 117,593 | 2,113,033 | ||||||||||||
Delaware Tax-Free USA Intermediate Fund | ||||||||||||||||||
Year ended | ||||||||||||||||||
8/31/21 | 107,662 | 11,026 | 538 | 11,563 | 106,713 | 1,488,442 | ||||||||||||
8/31/20 | 119,341 | 17,213 | — | 17,222 | 118,367 | 1,660,124 | ||||||||||||
Delaware National High-Yield Municipal Bond Fund | ||||||||||||||||||
Year ended | ||||||||||||||||||
8/31/21 | 43,780 | 52,403 | 1,754 | 34,517 | 63,161 | 1,126,321 | ||||||||||||
8/31/20 | 320,408 | 19,256 | — | 15,368 | 321,944 | 3,710,189 |
7. Reorganization
On August 12, 2020, the Board approved a proposal to reorganize Delaware Tax-Exempt Opportunities Fund and Delaware Tax-Exempt Income Fund, each a series of Delaware Group Limited-Term Government Funds (the “Acquired Funds”) with and into Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund (the “Acquiring Funds”) (the “Reorganization”) respectively. Pursuant to an Agreement and Plan of Reorganization (the “Plan”): (i) all of the property, assets, and goodwill of the Acquired Funds were acquired by the Acquiring Funds, and (ii) the Trust, on behalf of the Acquiring Funds, assumed the liabilities of the Acquired Funds, in exchange for shares of the Acquiring Funds. In accordance with the Plan, the Acquired Funds liquidated and dissolved following the Reorganization. The purpose of the transaction was to allow shareholders of the Acquired Funds to own shares of a Fund with a similar investment objective and style as, and potentially lower net expenses than the Acquired Funds. The reorganization was accomplished by a tax-free exchange of shares on December 4, 2020. For financial reporting purposes, assets received and shares issued by the Acquiring Funds were recorded at fair value; however, the cost basis of the investments received from the Acquired Funds was carried forward to align ongoing reporting of the Acquiring Funds’ realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
140
The share transactions associated with the merger are as follows:
Shares | ||||||||||||||
Acquired | Acquired | Converted | Acquiring | |||||||||||
Funds | Fund Shares | to Acquiring | Fund | Conversion | ||||||||||
Net Assets | Outstanding | Fund | Net Assets | Ratio | ||||||||||
Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free USA Fund | |||||||||||||
Class A | $ | 328,299,539 | 19,434,282 | 27,065,090 | $ | 496,595,841 | 1.393 | |||||||
Class C | — | — | — | 10,599,349 | — | |||||||||
Institutional | ||||||||||||||
Class | 5,996,641 | 354,397 | 490,723 | 131,648,773 | 1.385 | |||||||||
Shares | ||||||||||||||
Acquired | Acquired | Converted | Acquiring | |||||||||||
Funds | Fund Shares | to Acquiring | Fund | Conversion | ||||||||||
Net Assets | Outstanding | Fund | Net Assets | Ratio | ||||||||||
Delaware Tax-Exempt Income | Delaware Tax-Free USA Intermediate | |||||||||||||
Fund | Fund | |||||||||||||
Class A | $ | 470,834,974 | 49,412,013 | 37,970,562 | $ | 108,082,382 | 0.768 | |||||||
Class C | — | — | — | 11,623,405 | — | |||||||||
Institutional | ||||||||||||||
Class | 18,475,967 | 1,938,317 | 1,475,716 | 474,092,009 | 0.761 |
The net assets of the Acquiring Funds before the Reorganization were $638,843,963 and $593,797,796. The net assets of the Acquiring Funds immediately following the Reorganization were $973,140,143 and $1,083,108,737.
Assuming the Reorganization had been completed on September 1, 2020, the Acquiring Funds’ pro forma results of operations for the year ended August 31, 2021, would have been as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | |||||||||
Net investment income | $ | 37,814,794 | $ | 41,528,548 | ||||||
Net realized gain on | ||||||||||
investments | 16,302,449 | 7,470,384 | ||||||||
Net change in unrealized | ||||||||||
appreciation | 41,284,161 | 27,642,344 | ||||||||
Net increase in net assets | ||||||||||
resulting from | ||||||||||
operations | $ | 95,401,404 | $ | 76,641,276 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practical to separate the amounts of revenue and earnings of the Acquired Funds that have been included in the Acquiring Funds’ Statement of Operations since the Reorganization was consummated on December 4, 2020.
141
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
8. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $275,000,000 revolving line of credit (Agreement) intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, 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 2, 2020.
On November 2, 2020, each Fund, along with the other Participants entered into an amendment to the Agreement for an amount of $225,000,000 to be used as described above. It operates in substantially the same manner as the original Agreement with the addition of an upfront fee of 0.05%, which was allocated across the Participants. The line of credit available under the Agreement expires on November 1, 2021.
The Funds had no amounts outstanding as of August 31, 2021, or at any time during the year then ended.
9. 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
142
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. Each 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 each Fund or, at the discretion of the lending agent, replace the loaned securities. Each Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. Each Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, each Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among each Fund, the security lending agent, and the borrower. Each Fund records security lending income net of allocations to the security lending agent and the borrower.
Each Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of each Fund’s cash collateral account may be less than the amount each Fund would be required to return to the borrowers of the securities and each Fund would be required to make up for this shortfall.
During the year ended August 31, 2021, Delaware Tax-Free USA Intermediate Fund had no securities out on loan. For the year ended August 31, 2021, Delaware Tax-Fee USA Fund and Delaware National High-Yield Municipal Bond Fund were not included in the Lending Agreement.
10. Geographic, Credit, and Market Risks
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
IBOR is the risk that changes related to the use of the London interbank offered rate (LIBOR) and other interbank offered rate (collectively, “IBORs”) could have adverse impacts on financial instruments that reference LIBOR (or the corresponding IBOR). The abandonment of LIBOR could affect the value and
143
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
10. Geographic, Credit, and Market Risks (continued)
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 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.
As of August 31, 2021, Delaware Tax-Free USA Fund invested in municipal bonds issued by the states of California, New York, and territory of Puerto Rico, which constituted approximately 11.02%, 10.53%, and 14.46%, respectively, of the Fund’s net assets. As of August 31, 2021, Delaware Tax-Free USA Intermediate Fund invested in municipal bonds issued by the states of California, Illinois, and New York, which constituted approximately 11.88%, 12.14%, and 18.48%, respectively, of the Fund’s net assets. As of August 31, 2021, 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 12.52% and 15.78%, 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.
144
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. 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.”
11. 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.
145
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
12. Recent Accounting Pronouncements
In March 2020, FASB issued an Accounting Standards Update (ASU), 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.
13. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to August 31, 2021, that would require recognition or disclosure in the Funds’ financial statements.
146
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, 2021, the related statements of operations for the year ended August 31, 2021, the statements of changes in net assets for each of the two years in the period ended August 31, 2021, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2021 (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, 2021, 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, 2021 and each of the financial highlights for each of the five years in the period ended August 31, 2021 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, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 18, 2021
We have served as the auditor of one or more investment companies in Delaware Funds by Macquarie® since 2010.
147
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.
148
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, 2021, each Fund reports distributions paid during the year as follows:
(A) | ||||||||
Long-Term | (B) | (C) | ||||||
Capital Gains | Ordinary Income | Tax-Exempt | Total | |||||
Distributions | Distributions | Distributions | Distributions | |||||
(Tax Basis) | (Tax Basis) | (Tax Basis) | (Tax Basis) | |||||
Delaware Tax-Free USA Fund | 13.86% | 1.17% | 84.97% | 100.00% | ||||
Delaware Tax-Free USA Intermediate Fund | — | 0.04% | 99.96% | 100.00% | ||||
Delaware National | ||||||||
High-Yield Municipal Bond Fund | 3.76% | 1.97% | 94.27% | 100.00% |
____________________
(A), (B) and (C) are based on a percentage of each Fund’s total distributions.
The percentage of the ordinary dividends reported by Delaware National High-Yield Municipal Bond Fund that is treated as a Section 163(j) interest dividend and thus is eligible to be treated as interest income for purposes of Section 163(j) and the regulations thereunder is 100.00%.
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 August 10-12, 2021
At a meeting held on August 10-12, 2021 (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
149
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 August 10-12, 2021 (continued)
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 Asset Management”) concerning, among other things, the nature, extent, and quality of services provided to the Funds, the costs of such services to the Funds; economies of scale; and the investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, materials were provided to the Trustees in May 2021, 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.
150
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 Fund’s investment performance in comparison to a group of similar funds (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 December 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 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-, 3-, 5-, and 10-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free USA Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional general and 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 first 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-, 3-, 5-, and 10-year periods was in the first 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 and, for comparative consistency, included 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 National High-Yield Municipal Bond Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board
151
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 August 10-12, 2021 (continued)
considered fee waivers in place through December 2021 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.
Delaware Tax-Free USA Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the highest expenses of its Expense Group. The Board 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 October 2022 and various initiatives implemented by Management, such as a negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
Delaware Tax-Free USA Intermediate Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through October 2022 and various initiatives implemented by Management, such as a negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.
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 (SEC) 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
152
discussed with JDL personnel regarding DMC’s profitability in such context. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC.
Economies of scale. The Trustees considered whether economies of scale are realized by DMC as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed each Fund’s advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints, and which applies to most funds in the Delaware Funds complex. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case in the absence of breakpoints, when the asset levels specified in the breakpoints are exceeded. The Board noted that, as of March 31, 2021, each Fund’s net 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 each Fund and its shareholders.
153
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.
Number of | Other | |||||||||
Principal | Portfolios in Fund | Directorships | ||||||||
Name, | Position(s) | Occupation(s) | Complex Overseen | Held by | ||||||
Address, | Held with | Length of Time | During the | by Trustee | Trustee | |||||
and Birth Date | Fund(s) | Served | Past Five Years | or Officer | or Officer | |||||
Interested Trustee | ||||||||||
Shawn K. Lytle1 | President, | President and | Global Head of Macquarie | 150 | Trustee — UBS Relationship | |||||
610 Market Street | Chief Executive | Chief Executive | Investment Management2 | Funds, SMA Relationship Trust, | ||||||
Philadelphia, PA | Officer, | Officer | (January 2019–Present) | and UBS Funds | ||||||
19106-2354 | and Trustee | since August 2015 | Head of Americas of | (May 2010–April 2015) | ||||||
February 1970 | Trustee since | Macquarie Group | ||||||||
September 2015 | (December 2017–Present) | |||||||||
Deputy Global Head of | ||||||||||
Macquarie Investment | ||||||||||
Management | ||||||||||
(2017–2019) | ||||||||||
Head of Macquarie Investment | ||||||||||
Management Americas | ||||||||||
(2015–2017) |
154
Number of | Other | |||||||||
Principal | Portfolios in Fund | Directorships | ||||||||
Name, | Position(s) | Occupation(s) | Complex Overseen | Held by | ||||||
Address, | Held with | Length of Time | During the | by Trustee | Trustee | |||||
and Birth Date | Fund(s) | Served | Past Five Years | or Officer | or Officer | |||||
Independent Trustees | ||||||||||
Jerome D. | Trustee | Since January 2019 | Managing Member, Stonebrook | 150 | None | |||||
Abernathy | Capital Management, LLC | |||||||||
610 Market Street | (financial technology: macro | |||||||||
Philadelphia, PA | factors and databases) | |||||||||
19106-2354 | (January 1993-Present) | |||||||||
July 1959 | ||||||||||
Thomas L. Bennett | Chair and Trustee | Trustee since March | Private Investor | 150 | None | |||||
610 Market Street | 2005 | (March 2004–Present) | ||||||||
Philadelphia, PA | Chair since March | |||||||||
19106-2354 | 2015 | |||||||||
October 1947 | ||||||||||
Ann D. Borowiec | Trustee | Since March 2015 | Chief Executive Officer, Private | 150 | Director — Banco Santander | |||||
610 Market Street | Wealth Management | International | ||||||||
Philadelphia, PA | (2011–2013) and Market | (October 2016–December 2019) | ||||||||
19106-2354 | Manager, New Jersey Private | Director — Santander Bank, N.A. | ||||||||
November 1958 | Bank (2005–2011) — J.P. | (December 2016–December | ||||||||
Morgan Chase & Co. | 2019) |
155
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 | |||||
Joseph W. Chow | Trustee | Since January 2013 | Private Investor | 150 | Director and Audit Committee | |||||
610 Market Street | (April 2011–Present) | Member — Hercules Technology | ||||||||
Philadelphia, PA | Growth Capital, Inc. | |||||||||
19106-2354 | (July 2004–July 2014) | |||||||||
January 1953 | ||||||||||
John A. Fry | Trustee | Since January 2001 | President — Drexel University | 150 | Director; Compensation | |||||
610 Market Street | (August 2010–Present) | Committee and Governance | ||||||||
Philadelphia, PA | President — Franklin & Marshall | Committee Member — | ||||||||
19106-2354 | College | Community Health Systems | ||||||||
May 1960 | (July 2002–June 2010) | (May 2004–Present) | ||||||||
Director — Drexel Morgan & Co. | ||||||||||
(2015–2019) | ||||||||||
Director, Audit and | ||||||||||
Compensation 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) |
156
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. | Trustee | Since September | Private Investor | 150 | Trust Manager and Audit | |||||
Sevilla-Sacasa | 2011 | (January 2017–Present) | Committee Chair — Camden | |||||||
610 Market Street | Chief Executive Officer — Banco | Property Trust | ||||||||
Philadelphia, PA | Itaú International | (August 2011–Present) | ||||||||
19106-2354 | (April 2012–December 2016) | Director; Audit | ||||||||
January 1956 | Executive Advisor to Dean | and Compensation | ||||||||
(August 2011–March 2012) and | Committee Member — | |||||||||
Interim Dean | Callon Petroleum Company | |||||||||
(January 2011–July 2011) — | (December 2019–Present) | |||||||||
University of Miami School of | Director — New Senior | |||||||||
Business Administration | Investment Group Inc. | |||||||||
President — U.S. Trust, Bank of | (January 2021–Present) | |||||||||
America Private Wealth | Director; Audit Committee | |||||||||
Management (Private Banking) | Member — Carrizo Oil & Gas, | |||||||||
(July 2007-December 2008) | Inc. (March 2018–December | |||||||||
2019) |
157
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer | |||||
Thomas K. Whitford | Trustee | Since January 2013 | Vice Chairman — PNC Financial | 150 | Director — HSBC North America | |||||
610 Market Street | Services Group | Holdings Inc. | ||||||||
Philadelphia, PA | (2010–April 2013) | (December 2013–Present) | ||||||||
19106-2354 | Director — HSBC USA Inc. | |||||||||
March 1956 | (July 2014–Present) | |||||||||
Director — HSBC Bank USA, | ||||||||||
National Association | ||||||||||
(July 2014–March 2017) | ||||||||||
Director — HSBC Finance | ||||||||||
Corporation | ||||||||||
(December 2013–April 2018) |
158
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 | Trustee | Since January 2019 | Chief Executive Officer and | 150 | Director; Finance Committee and | |||||
610 Market Street | President — Gore Creek Capital, | Audit Committee Member — | ||||||||
Philadelphia, PA | Ltd. (August 2009–Present) | H&R Block Corporation | ||||||||
19106-2354 | (July 2008–Present) | |||||||||
August 1959 | 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–October 2021), | ||||||||||
The Merger Fund VL | ||||||||||
(2013–October 2021); WCM | ||||||||||
Alternatives: Event-Driven Fund | ||||||||||
(2013–October 2021), and WCM | ||||||||||
Alternatives: Credit Event Fund | ||||||||||
(December 2017–October 2021) | ||||||||||
Director; Chair of Governance | ||||||||||
Committee and Audit Committee | ||||||||||
Member — International | ||||||||||
Securities Exchange (2010–2016) |
159
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer | |||||
Janet L. Yeomans | Trustee | Since April 1999 | Vice President and Treasurer | 150 | Director; Personnel and | |||||
610 Market Street | (January 2006–July 2012), Vice | Compensation Committee Chair; | ||||||||
Philadelphia, PA | President — Mergers & | Member of Nominating, | ||||||||
19106-2354 | Acquisitions | Investments, and Audit | ||||||||
July 1948 | (January 2003–January 2006), | Committees for various periods | ||||||||
and Vice President and Treasurer | throughout directorship — | |||||||||
(July 1995–January 2003) — 3M | Okabena Company (2009–2017) | |||||||||
Company | ||||||||||
Officers | ||||||||||
David F. Connor | Senior Vice President, | Senior Vice President, | David F. Connor has served in | 150 | None3 | |||||
610 Market Street | General Counsel, and | since May 2013; | various capacities at different | |||||||
Philadelphia, PA | Secretary | General Counsel | times at Macquarie Investment | |||||||
19106-2354 | since May 2015; | Management. | ||||||||
December 1963 | Secretary since | |||||||||
October 2005 | ||||||||||
Daniel V. Geatens | Senior Vice President | Senior Vice President | Daniel V. Geatens has served in | 150 | None3 | |||||
610 Market Street | and Treasurer | and Treasurer since | various capacities at different | |||||||
Philadelphia, PA | October 2007 | times at Macquarie Investment | ||||||||
19106-2354 | Management. | |||||||||
October 1972 |
160
Name, Address, and Birth Date | Position(s) Held with Fund(s) | Length of Time Served | Principal Occupation(s) During the Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer | |||||
Richard Salus | Senior Vice President | Senior Vice President | Richard Salus has served in | 150 | None | |||||
610 Market Street | and Chief Financial | and Chief Financial | various capacities at different | |||||||
Philadelphia, PA | Officer | Officer since | times at Macquarie Investment | |||||||
19106-2354 | November 2006 | Management. | ||||||||
October 1963 |
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 and Daniel V. Geatens serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant. Mr. Geatens also serves as the Chief Financial Officer of the Optimum Fund Trust and he is the Chief Financial Officer and Treasurer for Macquarie Global Infrastructure Total Return Fund Inc. |
The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.
161
Board of trustees | ||||||
Shawn K. Lytle President and Chief Executive Officer Delaware Funds by Macquarie® Philadelphia, PA | Ann D. Borowiec Former Chief Executive Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY | Frances A. Sevilla-Sacasa Former Chief Executive Officer Banco Itaú International Miami, FL | Christianna Wood Chief Executive Officer and President Gore Creek Capital, Ltd. Golden, CO | |||
Jerome D. Abernathy Managing Member, Stonebrook Capital Management, LLC Jersey City, NJ | Joseph W. Chow Former Executive Vice President State Street Corporation Boston, MA | Thomas K. Whitford Former Vice Chairman PNC Financial Services Group Pittsburgh, PA | Janet L. Yeomans Former Vice President and Treasurer 3M Company St. Paul, MN | |||
Thomas L. Bennett Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA | John A. Fry President Drexel University Philadelphia, PA | |||||
Affiliated officers | ||||||
David F. Connor Senior Vice President, General Counsel, and Secretary Delaware Funds by Macquarie Philadelphia, PA | Daniel V. Geatens Senior Vice President and Treasurer Delaware Funds by Macquarie Philadelphia, PA | Richard Salus Senior Vice President and Chief Financial Officer Delaware Funds by Macquarie Philadelphia, PA | ||||
This annual report is for the information of Delaware Tax-Free 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
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Delaware Funds by Macquarie® Internet Web site at www.delawarefunds.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.
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
(a) Audit fees.
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 $72,288 for the fiscal year ended August 31, 2021.
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.
(b) Audit-related fees.
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, 2021.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of 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 $958,376 for the registrant’s fiscal year ended August 31, 2021. 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%. These audit-related services were as follows: year end audit procedures; group reporting and subsidiary statutory audits.
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 financial statements of 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 $903,282 for the registrant’s fiscal year ended August 31, 2020. 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%. These audit-related services were as follows: year end audit procedures; group reporting and subsidiary statutory audits.
(c) Tax fees.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $11,000 for the fiscal year ended August 31, 2021. 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%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
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, 2021. 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 by the registrant’s independent auditors for tax-related services provided to the registrant were $11,000 for the fiscal year ended August 31, 2020. 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%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
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, 2020. 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%.
(d) All other fees.
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, 2021.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s 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, 2021. 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 other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s 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, 2020. 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%.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Funds® by Macquarie.
Service | Range of Fees |
Audit Services | |
Statutory audits or financial audits for new Funds | up to $50,000 per Fund |
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters | up to $10,000 per Fund |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) | up to $25,000 in the aggregate |
Audit-Related Services | |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) | up to $25,000 in the aggregate |
Tax Services | |
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) | up to $25,000 in the aggregate |
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) | up to $5,000 per Fund |
Review of federal, state, local and international income, franchise and other tax returns | up to $5,000 per Fund |
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.
Service | Range of Fees |
Non-Audit Services | |
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters | up to $10,000 in the aggregate |
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 $9,044,000 and $5,607,000 for the registrant’s fiscal years ended August 31, 2021 and August 31, 2020, 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
(a) (1) Code of Ethics
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
DELAWARE GROUP® TAX-FREE FUND
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | November 3, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | November 3, 2021 |
/s/ RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | November 3, 2021 |