For the period ended February 29, 2008, Delaware Tax-Free Minnesota Fund had an average daily liability from the participation in inverse floater program of $37,293,973 and recorded interest expense at an average rate of 3.67%.
2. Investment Management, Administration Agreements and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee, which is calculated based on each Fund’s average daily net assets as follows:
| | | | | Delaware Tax-Free | | Delaware Minnesota |
| | | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| On the first $500 million | | | 0.550% | | | | 0.500% | | | | 0.550% | |
| On the next $500 million | | | 0.500% | | | | 0.475% | | | | 0.500% | |
| On the next $1.5 billion | | | 0.450% | | | | 0.450% | | | | 0.450% | |
| In excess of $2.5 billion | | | 0.425% | | | | 0.425% | | | | 0.425% | |
DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to ensure that annual operating expenses, exclusive of taxes, interest, brokerage fees, inverse floater expenses, 12b-1 plan expenses, certain insurance costs and non-routine expenses or costs including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations, do not exceed specified percentages of average daily net assets as shown below. For purposes of these waivers and reimbursements, non-routine expenses may also involve such additional costs and expenses, as may be agreed upon from time to time by the Funds’ Board of Trustees and DMC.
| | | | | Delaware Tax-Free | | Delaware Minnesota |
| | | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| Operating expense limitation | | | | | | | | | | | | |
| as a percentage of average | | | | | | | | | | | | |
| daily net assets (per annum) | | | 0.68% | | | | 0.60% | | | | 0.64% | |
| Expiration date | | | 12/31/08 | | | | 12/31/08 | | | | 12/31/08 | |
Effective October 1, 2007, Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pays DSC fees based on the aggregate daily net assets of the Delaware Investments® Family of Funds at the following annual rate: 0.005% of the first $30 billion; 0.0045% of the next $10 billion; 0.004% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments® Family of Funds on a relative net asset value basis. Prior to October 1, 2007, DSC provided fund accounting and administrative services to the Funds and received a fee at an annual rate of 0.04% of average daily net assets. For the six months ended February 29, 2008, each Fund was charged for these services as follows:
| | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| | | $33,451 | | | | $2,977 | | | | $7,798 | |
65
Notes to financial statements
Delaware Minnesota Municipal Bond Funds
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
DSC also provides dividend disbursing and transfer agency services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.
Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class B and C shares. DDLP has contracted to waive distribution and services fees through December 31, 2008 in order to prevent 12b-1 fees of Class A shares from exceeding 0.15% of average daily net assets for Delaware Tax-Free Minnesota Intermediate Fund.
At February 29, 2008, the Funds had liabilities payable to affiliates as follows:
| | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
Investment management fee
payable to DMC | | $264,079 | | $17,874 | | $55,027 |
Dividend disbursing,
transfer agent fees and other
expenses payable to DSC | | 27,493 | | 3,082 | | 8,138 |
| Distribution fee payable to DDLP | | 146,394 | | 11,323 | | 49,304 |
Other expenses payable to
DMC and affiliates* | | 54,307 | | 6,595 | | 12,503 |
*DMC, as part of its administrative services, pays operating expenses on behalf of each Fund and is reimbursed on a periodic basis. Such expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, registration fees and trustees’ fees.
As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to the Funds by DMC and/or its affiliates’ employees. For the six months ended February 29, 2008, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:
| | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| | $22,007 | | $1,989 | | $5,132 |
For the six months ended February 29, 2008, DDLP earned commissions on sales of Class A shares for each Fund as follows:
| | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| | $28,849 | | $3,264 | | $23,340 |
66
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
For the six months ended February 29, 2008, DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B and Class C shares, respectively. These commissions were entirely used to offset up-front commissions previously paid by DDLP to broker-dealers on sales of those shares. The amounts received were as follows:
| | | | Delaware Minnesota |
| | Delaware Tax-Free | | High-Yield Municipal |
| | Minnesota Fund | | Bond Fund |
| Class A | | $2,383 | | $10,556 |
| Class B | | 9,300 | | 4,822 |
| Class C | | 839 | | 2,978 |
Trustees’ fees include expenses accrued by the Funds for each Trustee’s retainer and per meeting fees. Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
3. Investments
For the six months ended February 29, 2008, the Funds made purchases and sales of investment securities other than short-term investments as follows:
| | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| Purchases | | $53,228,114 | | $11,904,197 | | $11,219,834 |
| Sales | | 62,110,588 | | 10,181,148 | | 6,936,998 |
At February 29, 2008, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 29, 2008 the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes for each Fund were as follows:
| | | | | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| Cost of investments | | | $ | 586,288,710 | | | | | $ | 58,771,124 | | | | | $ | 147,534,958 | | |
| Aggregate unrealized appreciation | | | $ | 20,187,369 | | | | | $ | 1,394,370 | | | | | $ | 1,478,103 | | |
| Aggregate unrealized depreciation | | | | (21,291,540 | ) | | | | | (1,058,638 | ) | | | | | (10,919,101 | ) | |
Net unrealized appreciation
(depreciation) | | | $ | (1,104,171 | ) | | | | $ | 335,732 | | | | | $ | (9,440,998 | ) | |
67
Notes to financial statements
Delaware Minnesota Municipal Bond Funds
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Additionally, 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 six months ended February 29, 2008, and the year ended August 31, 2007 was as follows:
| | | | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| Six months ended 2/29/08* | | | | | | | | | | | | | | | |
| Ordinary Income | | | $ | 351,659 | | | | $ | — | | | | $ | 7,104 | |
| Tax-exempt income | | | | 12,546,082 | | | | | 1,074,362 | | | | | 2,830,942 | |
| Long-term capital gain | | | | 100,607 | | | | | — | | | | | — | |
| Total | | | $ | 12,998,348 | | | | $ | 1,074,362 | | | | $ | 2,838,046 | |
| Year ended 8/31/07 | | | | | | | | | | | | | | | |
| Ordinary Income | | | $ | 30,656 | | | | $ | — | | | | $ | — | |
| Tax-exempt income | | | | 19,758,603 | | | | | 2,196,282 | | | | | 5,300,531 | |
| Long-term capital gain | | | | 356,139 | | | | | — | | | | | — | |
| Total | | | $ | 20,145,398 | | | | $ | 2,196,282 | | | | $ | 5,300,531 | |
*Tax information for the period ended February 29, 2008 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.
5. Components of Net Assets on a Tax Basis
The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 29, 2008, the estimated components of net assets on a tax basis was as follows:
| | | | | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| Shares of beneficial interest | | | $ | 595,065,901 | | | | | $ | 59,087,946 | | | | | $ | 149,909,597 | | |
| Distributions payable | | | | (417,105 | ) | | | | | (40,923 | ) | | | | | (107,565 | ) | |
| Undistributed tax-exempt income | | | | 394,688 | | | | | | 40,923 | | | | | | 107,565 | | |
Realized gains (losses)
9/1/07 – 2/29/08 | | | | 1,174,819 | | | | | | (37,423 | ) | | | | | (159,133 | ) | |
Capital loss carryforward
as of 08/31/07 | | | | (66,896 | ) | | | | | (1,466,620 | ) | | | | | (2,528,525 | ) | |
Unrealized appreciation (depreciation)
of investments | | | | (1,104,171 | ) | | | | | 335,732 | | | | | | (9,440,998 | ) | |
| Net assets | | | $ | 595,047,236 | | | | | $ | 57,919,635 | | | | | $ | 137,780,941 | | |
68
5. Components of Net Assets on a Tax Basis (continued)
The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of market discount on debt instruments.
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 29, 2008, the Funds recorded an estimate of these differences since the final tax characteristics cannot be determined until fiscal year end.
| | | | | | | | Delaware Minnesota |
| | Delaware Tax-Free | | High-Yield Municipal |
| | Minnesota Fund | | Bond Fund |
| Undistributed net investment income. | | | $ | 397,303 | | | | | $ | (1,140 | ) | |
| Accumulated realized gain (loss) | | | | (397,303 | ) | | | | | 1,140 | | |
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at February 29, 2008 will expire as follows:
| | | | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| Year of Expiration | | | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| 2008 | | | $ | — | | | | $ | — | | | | $ | 179,791 | |
| 2009 | | | | — | | | | | 1,024,839 | | | | | 1,267,552 | |
| 2010 | | | | — | | | | | 4,037 | | | | | 57,521 | |
| 2011 | | | | — | | | | | 246,659 | | | | | 243,334 | |
| 2012 | | | | — | | | | | — | | | | | 684,248 | |
| 2014 | | | | 66,896 | | | | | 81,340 | | | | | — | |
| 2015 | | | | — | | | | | 109,745 | | | | | 96,079 | |
| Total | | | $ | 66,896 | | | | $ | 1,466,620 | | | | $ | 2,528,525 | |
For the six months ended February 29, 2008, the Funds had capital gains (losses) which may increase or decrease capital loss carryforwards.
| | | | | Delaware Tax-Free | | Delaware Minnesota |
| | Delaware Tax-Free | | Minnesota | | High-Yield Municipal |
| | Minnesota Fund | | Intermediate Fund | | Bond Fund |
| | $1,174,819 | | $(37,423) | | $(159,133) |
69
Notes to financial statements
Delaware Minnesota Municipal Bond Funds
6. Capital Shares
Transactions in capital shares were as follows:
| | | | | | | | | | Delaware |
| | Delaware Tax-Free | | Tax-Free Minnesota |
| | Minnesota Fund | | Intermediate Fund |
| | Six Months | | Year | | Six Months | | Year |
| | Ended | | Ended | | Ended | | Ended |
| | 2/29/08 | | 8/31/07 | | 2/29/08 | | 8/31/07 |
| Shares sold: | | | | | | | | | | | | | | | | |
| Class A | | | 1,603,175 | | | | 3,661,506 | | | | 496,257 | | | | 569,224 | |
| Class B | | | 9,706 | | | | 33,935 | | | | 12,219 | | | | 1,226 | |
| Class C | | | 144,419 | | | | 378,988 | | | | 81,203 | | | | 65,839 | |
|
| Shares issued upon reinvestment of dividends and distributions: |
| Class A | | | 658,301 | | | | 983,425 | | | | 63,740 | | | | 128,379 | |
| Class B | | | 14,049 | | | | 22,742 | | | | 1,623 | | | | 4,274 | |
| Class C | | | 29,371 | | | | 42,393 | | | | 5,642 | | | | 11,105 | |
|
| Shares issued from merger:1 |
| Class A | | | — | | | | 16,515,995 | | | | — | | | | — | |
| Class B | | | — | | | | 703,417 | | | | — | | | | — | |
| Class C | | | — | | | | 931,298 | | | | — | | | | — | |
| | | 2,459,021 | | | | 23,273,699 | | | | 660,684 | | | | 780,047 | |
| Shares repurchased: | | | | | | | | | | | | | | | | |
| Class A | | | (2,761,890 | ) | | | (4,188,406 | ) | | | (273,910 | ) | | | (576,943 | ) |
| Class B | | | (195,159 | ) | | | (380,797 | ) | | | (47,733 | ) | | | (27,619 | ) |
| Class C | | | (216,782 | ) | | | (361,460 | ) | | | (37,714 | ) | | | (87,115 | ) |
| | | (3,173,831 | ) | | | (4,930,663 | ) | | | (359,357 | ) | | | (691,677 | ) |
| Net increase (decrease) | | | (714,810 | ) | | | 18,343,036 | | | | 301,327 | | | | 88,370 | |
| | Delaware Minnesota High-Yield |
| | Municipal Bond Fund |
| | Six Months | | Year |
| | Ended | | Ended |
| | 2/29/08 | | 8/31/07 |
| Shares sold: | | | | | | | | |
| Class A | | | 1,401,013 | | | | 3,750,543 | |
| Class B | | | 681 | | | | 67,763 | |
| Class C | | | 442,745 | | | | 985,801 | |
|
| Shares issued upon reinvestment of dividends and distributions: | | | | | |
| Class A | | | 149,901 | | | | 257,132 | |
| Class B | | | 7,160 | | | | 18,487 | |
| Class C | | | 32,819 | | | | 54,628 | |
| | | 2,034,319 | | | | 5,134,354 | |
| Shares repurchased: | | | | | | | | |
| Class A | | | (1,496,221 | ) | | | (1,528,071 | ) |
| Class B | | | (117,437 | ) | | | (274,769 | ) |
| Class C | | | (251,758 | ) | | | (433,788 | ) |
| | | (1,865,416 | ) | | | (2,236,628 | ) |
| Net increase | | | 168,903 | | | | 2,897,726 | |
1See note 8 in “Notes to financial statements.”
70
6. Capital Shares (continued)
For the six months ended February 29, 2008 and the year ended August 31, 2007, the following shares and values were converted from Class B to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the tables on the previous page and the statements of changes in net assets.
| | Six month Ended | | Year Ended |
| | | | 2/29/08 | | | | | | 8/31/07 | | |
| | Class B | | Class A | | | | Class B | | Class A | | |
| | Shares | | Shares | | Value | | Shares | | Shares | | Value |
| Delaware Tax-Free Minnesota Fund | | 92,889 | | 92,965 | | $1,143,050 | | 205,359 | | 205,523 | | $2,549,549 |
Delaware Tax-Free Minnesota
Intermediate Fund | | 44,760 | | 44,884 | | 482,209 | | 15,124 | | 15,160 | | 164,797 |
Delaware Minnesota High-Yield
Municipal Bond Fund | | 50,751 | | 50,843 | | 524,328 | | 157,023 | | 157,243 | | 1,656,744 |
7. Inverse Floaters
The Funds may participate in inverse floater programs where a Fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (inverse floaters) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of their portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that a Fund transferred to the trust, the Fund seeks to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. Securities held in trust relating to inverse floater programs are identified on the statements of net assets.
8. Fund Merger
Effective April 13, 2007, the Delaware Tax-Free Minnesota Fund (Acquiring Fund) acquired all of the assets and assumed all of the liabilities of Delaware Tax-Free Minnesota Insured Fund (Acquired Fund), an open end investments company, in exchange for shares of the Acquiring Fund pursuant to a Plan and Agreement of Reorganization (Reorganization). The shareholders of the Acquired Fund received shares of the respective class of the Acquiring Fund equal to the aggregate net asset of their share in the Acquired Fund prior to Reorganization.
71
Notes to financial statements
Delaware Minnesota Municipal Bond Funds
8. Fund Merger (continued)
The Reorganization was treated as a non-taxable event and, accordingly, Delaware Tax-Free Minnesota Fund’s basis in the securities acquired reflected the historical cost basis as of the date of transfer. The net assets, net unrealized appreciation and accumulated realized gain (loss) of Delaware Tax-Free Minnesota Insured Fund as of the close of business on April 13, 2007, were as follows:
| | | | Accumulated | | Net |
| | | | Net Realized | | Unrealized |
| | Net Assets | | Gain | | Appreciation |
Delaware Tax-Free Minnesota
Insured Fund | | $226,020,627 | | $286,856 | | $14,039,792 |
The net assets of the Delaware Tax-Free Minnesota Fund prior to the Reorganization were $407,952,332. The combined net assets of Delaware Tax-Free Minnesota after the merger were $633,972,959.
9. Line of Credit
Each Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), participates in a $225,000,000 revolving line of credit facility to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. The Participants are charged an annual commitment fee, which is allocated across the Participants on the basis of each fund’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The Funds had no amounts outstanding as of February 29, 2008 or at any time during the period then ended.
10. Credit and Market Risk
The Funds concentrate their investments in securities issued by municipalities, mainly in Minnesota. The value of these investments may be adversely affected by new legislation within the state, 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 market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the statements of net assets.
The Fund may invest in advanced refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding”. “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest
72
10. Credit and Market Risk (continued)
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 and 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 Investors Service, Inc., Standard & Poor’s Ratings Group, 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 of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board of Trustees has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid assets. As of February 29, 2008, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.
11. Contractual Obligations
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
73
About the organization
This semiannual report is for the information of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund and the Delaware Investments® Fund profiles for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com. The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Board of trustees | | |
| | | |
Patrick P. Coyne
Chairman, President, and
Chief Executive Officer
Delaware Investments Family
of Funds Philadelphia, PA Thomas L. Bennett
Private Investor
Rosemont, PA John A. Fry
President
Franklin & Marshall College
Lancaster, PA Anthony D. Knerr
Founder and Managing Director
Anthony Knerr & Associates
New York, NY Lucinda S. Landreth
Former Chief Investment Officer
Assurant, Inc.
Philadelphia, PA | | Ann R. Leven
Consultant
ARL Associates
New York, NY Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN J. Richard Zecher
Founder
Investor Analytics
Scottsdale, AZ |
74
Affiliated officers | | Contact information |
| | | |
David F. Connor
Vice President, Deputy General Counsel, and
Secretary
Delaware Investments® Family of Funds
Philadelphia, PA Daniel V. Geatens
Vice President and Treasurer
Delaware Investments Family of Funds
Philadelphia, PA David P. O’Connor
Senior Vice President, General Counsel,
and Chief Legal Officer
Delaware Investments Family of Funds
Philadelphia, PA Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA | | Investment manager
Delaware Management Company, a series of
Delaware Management Business Trust
Philadelphia, PA National distributor
Delaware Distributors, L.P.
Philadelphia, PA Shareholder servicing, dividend disbursing, and transfer agent
Delaware Service Company, Inc.
2005 Market Street
Philadelphia, PA 19103-7094 For shareholders
800 523-1918 For securities dealers and financial institutions representatives only
800 362-7500 Web site
www.delawareinvestments.com |
| |
|
Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries. Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the Commission’s Web site at www.sec.gov. In addition, a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on each Fund’s Web site at www.delawareinvestments.com. Each Fund’s Forms N-Q may be reviewed and copied at the Commission’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 each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through each Fund’s Web site at www.delawareinvestments.com; and (ii) on the Commission’s Web site at www.sec.gov. |
75
SA-MNALL [2/08] DG3 4/08 MF-08-03-023 PO 12795 (2927) |  |
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a) (1) Code of Ethics
Not applicable.
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
Name of Registrant: VOYAGEUR INTERMEDIATE TAX FREE FUNDS
| PATRICK P. COYNE |
| By: | Patrick P. Coyne |
| Title: | Chief Executive Officer |
| Date: | May 5, 2008 |
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.
| PATRICK P. COYNE |
| By: | Patrick P. Coyne |
| Title: | Chief Executive Officer |
| Date: | May 5, 2008 |
| |
| |
| RICHARD SALUS |
| By: | Richard Salus |
| Title: | Chief Financial Officer |
| Date: | May 5, 2008 |
