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: | 811-04973 |
Exact name of registrant as specified in charter: | Voyageur Insured Funds |
Address of principal executive offices: | 2005 Market Street |
Philadelphia, PA 19103 | |
Name and address of agent for service: | David F. Connor, Esq. |
2005 Market Street | |
Philadelphia, PA 19103 | |
Registrant’s telephone number, including area code: | (800) 523-1918 |
Date of fiscal year end: | August 31 |
Date of reporting period: | February 28, 2009 |
Item 1. Reports to Stockholders
![]() | ![]() |
Semiannual report | |
Delaware Tax-Free Arizona Fund | |
Delaware Tax-Free California Fund | |
Delaware Tax-Free Colorado Fund | |
Delaware Tax-Free Idaho Fund | |
Delaware Tax-Free New York Fund | |
February 28, 2009 |
Fixed income mutual funds |
Table of contents
Disclosure of Fund expenses | 1 | |
Sector allocations and credit quality breakdowns | 4 | |
Statements of net assets | 9 | |
Statements of operations | 44 | |
Statements of changes in net assets | 46 | |
Financial highlights | 56 | |
Notes to financial statements | 86 | |
About the organization | 99 |
Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management
Business Trust, which is a registered investment advisor.
© 2009 Delaware Distributors, L.P.
All third-party trademarks cited are the property of their respective owners.
Disclosure of Fund expenses
For the period September 1, 2008 to February 28, 2009
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2008 to February 28, 2009.
Actual expenses
The first section of the tables shown, “Actual Fund Return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% Return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.
1
Disclosure of Fund expenses
Delaware Tax-Free Arizona Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/08 | 2/28/09 | Expense Ratio | 9/1/08 to 2/28/09* | |||||||||||
Actual Fund return | ||||||||||||||
Class A | $ | 1,000.00 | $ | 992.60 | 0.75% | $3.71 | ||||||||
Class B | 1,000.00 | 988.00 | 1.50% | 7.39 | ||||||||||
Class C | 1,000.00 | 988.00 | 1.50% | 7.39 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.08 | 0.75% | $3.76 | ||||||||
Class B | 1,000.00 | 1,017.36 | 1.50% | 7.50 | ||||||||||
Class C | 1,000.00 | 1,017.36 | 1.50% | 7.50 |
Delaware Tax-Free California Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/08 | 2/28/09 | Expense Ratio | 9/1/08 to 2/28/09* | |||||||||||
Actual Fund return | ||||||||||||||
Class A | $ | 1,000.00 | $ | 954.60 | 0.88% | $4.26 | ||||||||
Class B | 1,000.00 | 952.20 | 1.63% | 7.89 | ||||||||||
Class C | 1,000.00 | 952.00 | 1.63% | 7.89 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.43 | 0.88% | $4.41 | ||||||||
Class B | 1,000.00 | 1,016.71 | 1.63% | 8.15 | ||||||||||
Class C | 1,000.00 | 1,016.71 | 1.63% | 8.15 |
Delaware Tax-Free Colorado Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/08 | 2/28/09 | Expense Ratio | 9/1/08 to 2/28/09* | |||||||||||
Actual Fund return | ||||||||||||||
Class A | $ | 1,000.00 | $ | 972.40 | 0.92% | $4.50 | ||||||||
Class B | 1,000.00 | 969.70 | 1.67% | 8.16 | ||||||||||
Class C | 1,000.00 | 968.80 | 1.67% | 8.15 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.23 | 0.92% | $4.61 | ||||||||
Class B | 1,000.00 | 1,016.51 | 1.67% | 8.35 | ||||||||||
Class C | 1,000.00 | 1,016.51 | 1.67% | 8.35 |
2
Delaware Tax-Free Idaho Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/08 | 2/28/09 | Expense Ratio | 9/1/08 to 2/28/09* | |||||||||||
Actual Fund return | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,004.70 | 0.87% | $4.32 | ||||||||
Class B | 1,000.00 | 1,001.00 | 1.62% | 8.04 | ||||||||||
Class C | 1,000.00 | 1,001.00 | 1.62% | 8.04 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.48 | 0.87% | $4.36 | ||||||||
Class B | 1,000.00 | 1,016.76 | 1.62% | 8.10 | ||||||||||
Class C | 1,000.00 | 1,016.76 | 1.62% | 8.10 |
Delaware Tax-Free New York Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/08 | 2/28/09 | Expense Ratio | 9/1/08 to 2/28/09* | |||||||||||
Actual Fund return | ||||||||||||||
Class A | $ | 1,000.00 | $ | 990.80 | 0.85% | $4.20 | ||||||||
Class B | 1,000.00 | 988.10 | 1.60% | 7.89 | ||||||||||
Class C | 1,000.00 | 988.10 | 1.60% | 7.89 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.58 | 0.85% | $4.26 | ||||||||
Class B | 1,000.00 | 1,016.86 | 1.60% | 8.00 | ||||||||||
Class C | 1,000.00 | 1,016.86 | 1.60% | 8.00 |
*“Expenses Paid During Period” are equal to a Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by the 181/365 (to reflect the one-half year period).
3
Sector allocations and credit quality breakdowns | |
Delaware Tax-Free Arizona Fund | As of February 28, 2009 |
Sector designations may be different than the sector designations presented in other Fund materials.
Sector | Percentage of net assets | |||
Municipal Bonds | 98.98% | |||
Corporate Revenue Bonds | 1.29% | |||
Education Revenue Bonds | 6.06% | |||
Electric Revenue Bonds | 5.34% | |||
Escrowed to Maturity Bonds | 0.29% | |||
Health Care Revenue Bonds | 5.44% | |||
Housing Revenue Bonds | 2.07% | |||
Lease Revenue Bonds | 10.42% | |||
Local General Obligation Bonds | 7.86% | |||
Pre-Refunded Bonds | 30.55% | |||
Special Tax Revenue Bonds | 8.64% | |||
State General Obligation Bonds | 4.75% | |||
Transportation Revenue Bonds | 4.98% | |||
Water & Sewer Revenue Bonds | 11.29% | |||
Short-Term Investment | 0.09% | |||
Total Value of Securities | 99.07% | |||
Receivables and Other Assets Net of Liabilities | 0.93% | |||
Total Net Assets | 100.00% | |||
Credit quality breakdown (as a % of fixed income investments)* | ||||
AAA | 26.97% | |||
AA | 43.78% | |||
A | 18.23% | |||
BBB | 11.02% | |||
Total | 100.00% |
*Bond ratings are determined by independent, nationally recognized statistical rating organizations.
4
Delaware Tax-Free California Fund | As of February 28, 2009 |
Sector designations may be different than the sector designations presented in other Fund materials.
Sector | Percentage of net assets | |||
Municipal Bonds | 96.28% | |||
Education Revenue Bonds | 12.40% | |||
Electric Revenue Bonds | 3.79% | |||
Health Care Revenue Bonds | 6.47% | |||
Housing Revenue Bonds | 9.19% | |||
Lease Revenue Bonds | 7.66% | |||
Local General Obligation Bonds | 15.66% | |||
Pre-Refunded Bonds | 13.87% | |||
Special Tax Revenue Bonds | 10.98% | |||
State General Obligation Bonds | 4.83% | |||
Transportation Revenue Bonds | 3.48% | |||
Water & Sewer Revenue Bonds | 7.95% | |||
Short-Term Investments | 2.72% | |||
Money Market Instrument | 1.45% | |||
Variable Rate Demand Note | 1.27% | |||
Total Value of Securities | 99.00% | |||
Receivables and Other Assets Net of Liabilities | 1.00% | |||
Total Net Assets | 100.00% | |||
Credit quality breakdown (as a % of fixed income investments)* | ||||
AAA | 40.32% | |||
AA | 23.56% | |||
A | 17.15% | |||
BBB | 10.91% | |||
Not Rated | 8.06% | |||
Total | 100.00% |
*Bond ratings are determined by independent, nationally recognized statistical rating organizations.
5
Sector allocations and credit quality breakdowns | |
Delaware Tax-Free Colorado Fund | As of February 28, 2009 |
Sector designations may be different than the sector designations presented in other Fund materials.
Sector | Percentage of net assets | |||
Municipal Bonds | 98.47% | |||
Education Revenue Bonds | 10.48% | |||
Electric Revenue Bonds | 5.35% | |||
Escrowed to Maturity Bonds | 2.37% | |||
Health Care Revenue Bonds | 13.30% | |||
Housing Revenue Bonds | 1.56% | |||
Lease Revenue Bonds | 2.73% | |||
Local General Obligation Bonds | 14.50% | |||
Pre-Refunded Bonds | 34.21% | |||
Special Tax Revenue Bonds | 6.02% | |||
State General Obligation Bonds | 3.70% | |||
Transportation Revenue Bonds | 2.51% | |||
Water & Sewer Revenue Bonds | 1.74% | |||
Short-Term Investment | 0.14% | |||
Total Value of Securities | 98.61% | |||
Receivables and Other Assets Net of Liabilities | 1.39% | |||
Total Net Assets | 100.00% | |||
Credit quality breakdown (as a % of fixed income investments)* | ||||
AAA | 24.06% | |||
AA | 33.13% | |||
A | 19.31% | |||
BBB | 13.82% | |||
Not Rated | 9.68% | |||
Total | 100.00% |
*Bond ratings are determined by independent, nationally recognized statistical rating organizations.
6
Delaware Tax-Free Idaho Fund | As of February 28, 2009 |
Sector designations may be different than the sector designations presented in other Fund materials.
Sector | Percentage of net assets | |||
Municipal Bonds | 97.89% | |||
Corporate Revenue Bonds | 5.45% | |||
Education Revenue Bonds | 11.20% | |||
Electric Revenue Bonds | 1.10% | |||
Escrowed to Maturity Bonds | 2.05% | |||
Health Care Revenue Bonds | 6.00% | |||
Housing Revenue Bonds | 6.86% | |||
Lease Revenue Bonds | 5.49% | |||
Local General Obligation Bonds | 25.82% | |||
Pre-Refunded Bonds | 15.75% | |||
Special Tax Revenue Bonds | 7.29% | |||
State General Obligation Bonds | 2.65% | |||
Transportation Revenue Bonds | 4.66% | |||
Water & Sewer Revenue Bonds | 3.57% | |||
Short-Term Investment | 1.99% | |||
Total Value of Securities | 99.88% | |||
Receivables and Other Assets Net of Liabilities | 0.12% | |||
Total Net Assets | 100.00% | |||
Credit quality breakdown (as a % of fixed income investments)* | ||||
AAA | 41.63% | |||
AA | 22.85% | |||
A | 18.78% | |||
BBB | 14.40% | |||
BB | 1.99% | |||
Not Rated | 0.35% | |||
Total | 100.00% |
*Bond ratings are determined by independent, nationally recognized statistical rating organizations.
7
Sector allocations and credit quality breakdowns | |
Delaware Tax-Free New York Fund | As of February 28, 2009 |
Sector designations may be different than the sector designations presented in other Fund materials.
Sector | Percentage of net assets | |||
Municipal Bonds | 96.99% | |||
Corporate Revenue Bonds | 4.48% | |||
Education Revenue Bonds | 15.75% | |||
Electric Revenue Bonds | 3.52% | |||
Health Care Revenue Bonds | 7.06% | |||
Housing Revenue Bonds | 0.95% | |||
Lease Revenue Bonds | 4.64% | |||
Local General Obligation Bonds | 2.83% | |||
Pre-Refunded Bonds | 19.84% | |||
Special Tax Revenue Bonds | 19.72% | |||
State General Obligation Bonds | 2.54% | |||
Transportation Revenue Bonds | 13.55% | |||
Water & Sewer Revenue Bonds | 2.11% | |||
Short-Term Investment | 2.23% | |||
Total Value of Securities | 99.22% | |||
Receivables and Other Assets Net of Liabilities | 0.78% | |||
Total Net Assets | 100.00% | |||
Credit quality breakdown (as a % of fixed income investments)* | ||||
AAA | 29.61% | |||
AA | 36.57% | |||
A | 18.92% | |||
BBB | 10.56% | |||
BB | 3.78% | |||
Not Rated | 0.56% | |||
Total | 100.00% |
*Bond ratings are determined by independent, nationally recognized statistical rating organizations.
8
Statements of net assets | |
Delaware Tax-Free Arizona Fund | February 28, 2009 (Unaudited) |
Principal amount | Value | ||||||
Municipal Bonds – 98.98% | |||||||
Corporate Revenue Bonds – 1.29% | |||||||
Maricopa County Pollution Control | |||||||
(Palo Verde Project) Series A 5.05% 5/1/29 (AMBAC) | $ | 2,000,000 | $ | 1,594,460 | |||
1,594,460 | |||||||
Education Revenue Bonds – 6.06% | |||||||
Arizona State Board of Regents | |||||||
(University of Arizona) 5.00% 6/1/21 | 1,255,000 | 1,353,379 | |||||
Arizona State University Certificates of Participation | |||||||
(Research Infrastructure Project) | |||||||
5.00% 9/1/30 (AMBAC) | 2,000,000 | 1,926,000 | |||||
Energy Management Services (University of Arizona- | |||||||
Main Campus) 5.25% 7/1/17 (MBIA) | 1,500,000 | 1,625,730 | |||||
Pima County Industrial Development Authority Educational | |||||||
Revenue (Tucson Country Day School Project) | |||||||
5.00% 6/1/37 | 1,000,000 | 597,370 | |||||
South Campus Group Student Housing Revenue | |||||||
(University of Arizona-South Campus Project) | |||||||
5.625% 9/1/35 (MBIA) | 1,000,000 | 960,770 | |||||
Tucson Industrial Development Authority | |||||||
(University of Arizona-Marshall Foundation) | |||||||
Series B 5.00% 7/15/27 (AMBAC) | 1,000,000 | 919,760 | |||||
University of Arizona Certificates of Participation | |||||||
(University of Arizona Project) | |||||||
Series A 5.125% 6/1/21 (AMBAC) | 85,000 | 87,029 | |||||
7,470,038 | |||||||
Electric Revenue Bonds – 5.34% | |||||||
Mesa Utilities System Revenue | |||||||
5.00% 7/1/18 (MBIA) (FGIC) | 2,150,000 | 2,318,754 | |||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series WW 5.00% 7/1/28 | 1,430,000 | 1,271,999 | |||||
Salt River Project Agricultural Improvement & | |||||||
Power District Electric System Revenue | |||||||
Series A 5.00% 1/1/22 | 1,000,000 | 1,064,620 | |||||
Series B 5.00% 1/1/31 (MBIA) | 2,000,000 | 1,922,760 | |||||
6,578,133 | |||||||
Escrowed to Maturity Bonds – 0.29% | |||||||
Phoenix Street & Highway User Revenue (Senior Lien) | |||||||
6.50% 7/1/09 (AMBAC) | 350,000 | 357,294 | |||||
357,294 |
9
Statements of net assets
Delaware Tax-Free Arizona Fund
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
Health Care Revenue Bonds – 5.44% | |||||||
Glendale Industrial Development Authority Hospital | |||||||
Revenue (John C. Lincoln Health) 5.00% 12/1/42 | $ | 2,500,000 | $ | 1,679,625 | |||
Maricopa County Industrial Development Authority Health | |||||||
Facilities Revenue (Catholic Health Care West) | |||||||
Series A 5.50% 7/1/26 | 1,000,000 | 923,660 | |||||
Scottsdale Industrial Development Authority Hospital | |||||||
Revenue (Scottsdale Health Care) | |||||||
Series A 5.25% 9/1/30 | 1,250,000 | 1,041,913 | |||||
University Medical Center Hospital Revenue | |||||||
5.00% 7/1/24 | 800,000 | 649,256 | |||||
5.00% 7/1/35 | 1,000,000 | 723,850 | |||||
Yavapai County Industrial Development Authority | |||||||
Revenue (Yavapai Regional Medical Center) | |||||||
Series A 5.25% 8/1/21 (RADIAN) | 2,000,000 | 1,685,280 | |||||
6,703,584 | |||||||
Housing Revenue Bonds – 2.07% | |||||||
Pima County Industrial Development Authority | |||||||
Single Family Housing Revenue | |||||||
Series A-1 6.125% 11/1/33 | |||||||
(GNMA) (FNMA) (FHLMC) (AMT) | 15,000 | 15,015 | |||||
Series B-1 6.10% 5/1/31 (GNMA) (AMT) | 45,000 | 45,722 | |||||
Yuma Industrial Development Authority | |||||||
Multifamily Housing Revenue | |||||||
Series A 6.10% 9/20/19 (GNMA) (AMT) | 2,340,000 | 2,489,643 | |||||
2,550,380 | |||||||
Lease Revenue Bonds – 10.42% | |||||||
Arizona Game & Fish Department & Community | |||||||
Beneficial Interest Certificates (Administration | |||||||
Building Project) 5.00% 7/1/32 | 1,300,000 | 1,180,127 | |||||
Marana Municipal Property Facilities Revenue | |||||||
5.00% 7/1/28 (AMBAC) | 575,000 | 577,409 | |||||
Maricopa County Industrial Development Authority | |||||||
Correctional Contract Revenue (Phoenix West Prison) | |||||||
Series B 5.375% 7/1/22 (ACA) | 1,000,000 | 826,680 | |||||
Phoenix Industrial Development Authority Lease | |||||||
Revenue (Capitol Mall II, LLC Project) | |||||||
5.00% 9/15/28 (AMBAC) | 2,000,000 | 1,894,820 |
10
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Lease Revenue Bonds (continued) | ||||||||
Pinal County Certificates of Participation | ||||||||
5.00% 12/1/29 | $ | 1,300,000 | $ | 1,115,699 | ||||
5.125% 6/1/21 (AMBAC) | 4,000,000 | 4,054,760 | ||||||
Puerto Rico Public Buildings Authority Revenue | ||||||||
(Guaranteed Government Facilities) Series D | ||||||||
5.25% 7/1/27 | 470,000 | 408,891 | ||||||
5.25% 7/1/36 | 270,000 | 222,051 | ||||||
Salt River Project Arizona Agricultural Improvement & | ||||||||
Power District Certificates of Participation | ||||||||
5.00% 12/1/18 (MBIA) | 1,500,000 | 1,573,575 | ||||||
University of Arizona Certificates of Participation | ||||||||
Series B 5.00% 6/1/31 (AMBAC) | 1,000,000 | 988,020 | ||||||
12,842,032 | ||||||||
Local General Obligation Bonds – 7.86% | ||||||||
Chandler 5.00% 7/1/17 | 1,935,000 | 2,229,527 | ||||||
Cochise County Unified School District #68 | ||||||||
(Sierra Vista) 7.50% 7/1/10 (MBIA) (FGIC) | 1,000,000 | 1,074,100 | ||||||
Coconino & Yavapai Counties Joint Unified School | ||||||||
District #9 (Sedona Oak Creek Project of 2007) | ||||||||
Series A 4.50% 7/1/18 (FSA) | 1,520,000 | 1,688,826 | ||||||
Series B 5.375% 7/1/28 | 1,350,000 | 1,361,097 | ||||||
DC Ranch Community Facilities 5.00% 7/15/27 (AMBAC) | 1,000,000 | 849,890 | ||||||
Φ | Gila County Unified School District #10 | |||||||
(Payson School Improvement-Project of 2006) | ||||||||
Series A 1.00% 7/1/27 (AMBAC) | 1,000,000 | 924,110 | ||||||
Maricopa County Unified School District #41 | ||||||||
(Gilbert School Improvement-Projects of | ||||||||
2005 & 2007) 3.25% 7/1/15 | 1,500,000 | 1,548,660 | ||||||
9,676,210 | ||||||||
§Pre-Refunded Bonds – 30.55% | ||||||||
Arizona State Board of Regents Certificates of | ||||||||
Participation (University of Arizona-Main Campus) | ||||||||
Series 2000 A-1 5.125% 6/1/25-11 (AMBAC) | 1,250,000 | 1,356,200 | ||||||
Glendale Industrial Development Authority | ||||||||
Revenue (Midwestern University) | ||||||||
Series A 5.875% 5/15/31-11 | 1,000,000 | 1,102,620 | ||||||
Mesa Industrial Development Authority | ||||||||
Revenue (Discovery Health Systems) | ||||||||
Series A 5.625% 1/1/29-10 (MBIA) | 9,000,000 | 9,440,999 |
11
Statements of net assets
Delaware Tax-Free Arizona Fund
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
§Pre-Refunded Bonds (continued) | |||||||
Phoenix Industrial Development Authority Lease | |||||||
Revenue (Capitol Mall LLC Project) | |||||||
5.50% 9/15/27-10 (AMBAC) | $ | 3,000,000 | $ | 3,207,150 | |||
Phoenix Industrial Development Authority Multifamily | |||||||
Housing Revenue (Ventana Palms Apartments Project) | |||||||
Series A 6.20% 10/1/34-09 (MBIA) | 940,000 | 990,704 | |||||
Phoenix Variable Purpose Series B 5.00% 7/1/27-12 | 2,435,000 | 2,478,319 | |||||
Puerto Rico Commonwealth Highway & | |||||||
Transportation Authority Revenue Series K | |||||||
5.00% 7/1/35-15 | 750,000 | 871,050 | |||||
5.00% 7/1/40-15 | 590,000 | 685,226 | |||||
Puerto Rico Commonwealth Public | |||||||
Improvement Revenue Series A | |||||||
5.00% 7/1/27-12 | 1,000,000 | 1,113,560 | |||||
5.125% 7/1/31-11 | 705,000 | 768,513 | |||||
Puerto Rico Commonwealth Revenue | |||||||
Series B 5.00% 7/1/35-16 | 2,000,000 | 2,344,500 | |||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series NN 5.00% 7/1/32-13 (MBIA) | 1,750,000 | 1,987,283 | |||||
Series RR 5.00% 7/1/35-15 (FGIC) | 1,545,000 | 1,797,329 | |||||
Puerto Rico Public Buildings Authority Revenue | |||||||
(Guaranteed Government Facilities) | |||||||
Series D 5.25% 7/1/27-12 | 1,280,000 | 1,402,355 | |||||
Series I 5.25% 7/1/33-14 | 5,000 | 5,634 | |||||
Scottsdale Industrial Development Authority Hospital | |||||||
Revenue (Scottsdale Health Care) 5.70% 12/1/21-11 | 500,000 | 557,010 | |||||
Scottsdale Municipal Property Corporation Excise | |||||||
Tax Revenue 5.00% 7/1/21-16 | 1,505,000 | 1,755,417 | |||||
Southern Arizona Capital Facilities Finance Revenue | |||||||
(University of Arizona Project) 5.10% 9/1/33-12 (MBIA) | 3,250,000 | 3,642,178 | |||||
University of Arizona Certificates of Participation | |||||||
(University of Arizona Project) | |||||||
Series A 5.125% 6/1/21-12 (AMBAC) | 915,000 | 1,015,366 | |||||
Series B 5.125% 6/1/22-12 (AMBAC) | 1,000,000 | 1,112,390 | |||||
37,633,803 | |||||||
Special Tax Revenue Bonds – 8.64% | |||||||
Arizona State Transportation Board Excise Tax Revenue | |||||||
(Maricopa County Regional Area Road Foundation) | |||||||
5.00% 7/1/19 | 1,500,000 | 1,655,820 |
12
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
Arizona Tourism & Sports Authority Tax Revenue | |||||||
(Multipurpose Stadium Facilities) | |||||||
Series A 5.00% 7/1/28 (MBIA) | $ | 2,500,000 | $ | 2,451,250 | |||
Flagstaff Aspen Place Sawmill Improvement District | |||||||
Revenue 5.00% 1/1/32 | 1,350,000 | 1,239,705 | |||||
Marana Tangerine Farm Road Improvement District | |||||||
Revenue 4.60% 1/1/26 | 963,000 | 686,658 | |||||
Mesa Street & Highway Revenue 5.00% 7/1/20 (FSA) | 1,000,000 | 1,098,570 | |||||
Peoria Municipal Development Authority Transition | |||||||
Sales Tax, Excise Tax & State Shared Revenue | |||||||
(Senior Lien & Subordinated Lien) 4.50% 1/1/16 | 1,000,000 | 1,101,910 | |||||
Phoenix Civic Improvement Transition Excise Tax | |||||||
Revenue (Light Rail Project) 5.00% 7/1/20 (AMBAC) | 2,270,000 | 2,403,907 | |||||
10,637,820 | |||||||
State General Obligation Bonds – 4.75% | |||||||
Puerto Rico Commonwealth Public | |||||||
Improvement Refunding Series A | |||||||
5.50% 7/1/17 | 1,765,000 | 1,713,197 | |||||
5.50% 7/1/19 | 1,300,000 | 1,228,786 | |||||
Unrefunded Balance Series A | |||||||
5.125% 7/1/30 (FSA) | 480,000 | 459,840 | |||||
5.125% 7/1/31 | 2,000,000 | 1,661,660 | |||||
Virgin Islands Public Finance Authority | |||||||
(Gross Receipts Taxes) 5.00% 10/1/31 (ACA) | 1,000,000 | 783,560 | |||||
5,847,043 | |||||||
Transportation Revenue Bonds – 4.98% | |||||||
Arizona State Transportation Board Grant Anticipation | |||||||
Notes 5.00% 7/1/14 | 1,500,000 | 1,692,075 | |||||
Arizona State Transportation Board Highway Revenue | |||||||
Series A 5.00% 7/1/23 | 1,000,000 | 1,042,510 | |||||
Phoenix Civic Improvement Corporation Airport | |||||||
Revenue Series B | |||||||
5.25% 7/1/27 (MBIA) (FGIC) (AMT) | 1,000,000 | 878,760 | |||||
5.25% 7/1/32 (MBIA) (FGIC) (AMT) | 3,000,000 | 2,520,870 | |||||
6,134,215 | |||||||
Water & Sewer Revenue Bonds – 11.29% | |||||||
Arizona Water Infrastructure Finance Authority Revenue | |||||||
(Water Quality) Series A 5.00% 10/1/14 | 1,500,000 | 1,713,555 |
13
Statements of net assets
Delaware Tax-Free Arizona Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Water & Sewer Revenue Bonds (continued) | ||||||||
Glendale Water & Sewer Revenue (Senior Lien) | ||||||||
5.00% 7/1/28 (AMBAC) | $ | 2,000,000 | $ | 1,956,200 | ||||
Phoenix Civic Improvement Corporation | ||||||||
Wastewater Systems Revenue | ||||||||
5.00% 7/1/19 (MBIA) | 2,750,000 | 3,029,400 | ||||||
(Junior Lien) 5.00% 7/1/24 (MBIA) (FGIC) | 1,000,000 | 1,004,980 | ||||||
Phoenix Civic Improvement Corporation Water Systems | ||||||||
Revenue (Junior Lien) 5.00% 7/1/26 (MBIA) (FGIC) | 3,750,000 | 3,750,900 | ||||||
Scottsdale Water & Sewer Revenue | ||||||||
4.00% 7/1/14 | 175,000 | 190,797 | ||||||
4.00% 7/1/15 | 500,000 | 546,810 | ||||||
4.00% 7/1/16 | 375,000 | 409,624 | ||||||
5.25% 7/1/22 | 1,150,000 | 1,308,332 | ||||||
13,910,598 | ||||||||
Total Municipal Bonds (cost $123,687,058) | 121,935,610 | |||||||
Number of shares | ||||||||
Short-Term Investment – 0.09% | ||||||||
Money Market Instrument – 0.09% | ||||||||
Federated Arizona Municipal Cash Trust | 114,789 | 114,789 | ||||||
Total Short-Term Investment (cost $114,789) | 114,789 | |||||||
Total Value of Securities – 99.07% | ||||||||
(cost $123,801,847) | 122,050,399 | |||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 0.93% | 1,140,838 | |||||||
Net Assets Applicable to 11,590,105 | ||||||||
Shares Outstanding – 100.00% | $ | 123,191,237 | ||||||
Net Asset Value – Delaware Tax-Free Arizona Fund | ||||||||
Class A ($108,716,317 / 10,230,203 Shares) | $10.63 | |||||||
Net Asset Value – Delaware Tax-Free Arizona Fund | ||||||||
Class B ($7,597,112 / 714,377 Shares) | $10.63 | |||||||
Net Asset Value – Delaware Tax-Free Arizona Fund | ||||||||
Class C ($6,877,808 / 645,525 Shares) | $10.65 |
14
Components of Net Assets at February 28, 2009: | ||||
Shares of beneficial interest (unlimited authorization – no par) | $ | 127,901,846 | ||
Undistributed net investment income | 267 | |||
Accumulated net realized loss on investments | (2,959,428 | ) | ||
Net unrealized depreciation of investments | (1,751,448 | ) | ||
Total net assets | $ | 123,191,237 |
Φ | Step coupon bond. Coupon increases periodically based on a predetermined schedule. Stated rate in effect at February 28, 2009. |
§ | Pre-Refunded bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.” |
Summary of abbreviations:
ACA — Insured by American Capital Access
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FHLMC — Insured by the Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association collateral
FSA — Insured by Financial Security Assurance
GNMA — Government National Mortgage Association collateral
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance
Net Asset Value and Offering Price Per Share – | |||
Delaware Tax-Free Arizona Fund | |||
Net asset value Class A (A) | $ | 10.63 | |
Sales charge (4.50% of offering price) (B) | 0.50 | ||
Offering price | $ | 11.13 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. |
(B) | See the current prospectus for purchases of $100,000 or more. |
See accompanying notes
15
Statements of net assets | |
Delaware Tax-Free California Fund | February 28, 2009 (Unaudited) |
Principal amount | Value | ||||||
Municipal Bonds – 96.28% | |||||||
Education Revenue Bonds – 12.40% | |||||||
California Educational Facilities Authority Revenue | |||||||
(Claremont McKenna College) 5.00% 1/1/39 | $ | 1,000,000 | $ | 975,700 | |||
(University of Southern California) | |||||||
Series A 5.00% 10/1/39 | 1,000,000 | 999,950 | |||||
(University of the Pacific) Un-Refunded Balance | |||||||
5.75% 11/1/30 (MBIA) | 310,000 | 310,363 | |||||
(Woodbury University) 5.00% 1/1/36 | 1,000,000 | 637,720 | |||||
California Municipal Finance Authority Educational | |||||||
Revenue (American Heritage Foundation Project) | |||||||
Series A 5.25% 6/1/36 | 1,000,000 | 636,800 | |||||
California Statewide Communities Development | |||||||
Authority Revenue | |||||||
(California Baptist University Project) | |||||||
Series A 5.50% 11/1/38 | 1,000,000 | 587,640 | |||||
(Viewpoint School Project) 5.75% 10/1/33 (ACA) | 1,000,000 | 790,280 | |||||
(Windrush School Project) 5.50% 7/1/37 | 1,000,000 | 591,760 | |||||
California Statewide Communities Development | |||||||
Authority Student Housing Revenue | |||||||
(East Campus Apartments, LLC) | |||||||
Series A 5.625% 8/1/34 (ACA) | 1,000,000 | 809,010 | |||||
San Diego County Certificates of Participation | |||||||
(University of San Diego) 5.375% 10/1/41 | 1,000,000 | 903,970 | |||||
University of California Revenue (Multiple Purpose Projects) | |||||||
Series L 5.00% 5/15/16 | 225,000 | 255,292 | |||||
Series L 5.00% 5/15/19 | 850,000 | 930,827 | |||||
Series Q 5.00% 9/1/20 (FSA) | 1,290,000 | 1,356,705 | |||||
9,786,017 | |||||||
Electric Revenue Bonds – 3.79% | |||||||
California Department of Water Resources Power | |||||||
Supply Revenue Series H 5.00% 5/1/17 | 1,000,000 | 1,099,930 | |||||
Chino Basin Regional Financing Authority Revenue | |||||||
Series A 5.00% 11/1/24 (AMBAC) | 845,000 | 858,021 | |||||
Southern California Public Power Authority Revenue | |||||||
(Transmission Project) Series A 5.00% 7/1/22 | 1,000,000 | 1,030,430 | |||||
2,988,381 | |||||||
Health Care Revenue Bonds – 6.47% | |||||||
Association Bay Area Governments Finance Authority | |||||||
for California Nonprofit Corporations (San Diego | |||||||
Hospital Association) Series A 6.125% 8/15/20 | 1,250,000 | 1,200,300 |
16
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
Health Care Revenue Bonds (continued) | |||||||
California Health Facilities Financing Authority Revenue | |||||||
(Catholic Health Care West) Series G 5.25% 7/1/23 | $ | 1,000,000 | $ | 946,390 | |||
(The Episcopal Home) Series A 5.30% 2/1/32 (RADIAN) | 1,000,000 | 872,080 | |||||
California Infrastructure & Economic Development | |||||||
Bank Revenue (Kaiser Hospital Associates I, LLC) | |||||||
Series A 5.55% 8/1/31 | 1,000,000 | 905,520 | |||||
California Statewide Communities Development Authority | |||||||
Revenue | |||||||
(Presbyterian Homes Senior Living) | |||||||
Series A 4.875% 11/15/36 | 1,000,000 | 622,030 | |||||
(Valleycare Health Systems) Series A 5.125% 7/15/31 | 1,000,000 | 557,950 | |||||
5,104,270 | |||||||
Housing Revenue Bonds – 9.19% | |||||||
California Housing Finance Agency | |||||||
Revenue (Home Mortgage) | |||||||
Series K 5.30% 8/1/23 (AMT) | 1,000,000 | 914,050 | |||||
Series M 5.95% 8/1/25 (AMT) | 1,000,000 | 952,660 | |||||
California Statewide Communities Development | |||||||
Authority Multifamily Housing Revenue | |||||||
(Citrus Gardens Apartments) Series D-1 5.375% 7/1/32 | 1,800,000 | 1,626,102 | |||||
·(Silver Ridge Apartments) Series H | |||||||
5.80% 8/1/33 (FNMA) (AMT) | 1,000,000 | 1,029,960 | |||||
Palm Springs Mobile Home Park Revenue | |||||||
(Sahara Mobile Home Park) Series A 5.75% 5/15/37 | 1,000,000 | 760,540 | |||||
Santa Clara County Multifamily Housing Authority | |||||||
Revenue (Rivertown Apartments Project) | |||||||
Series A 5.85% 8/1/31 (AMT) | 1,000,000 | 990,090 | |||||
Ventura County Area Multifamily Housing Authority | |||||||
Revenue (Glen Oaks Apartments) | |||||||
Series A 6.35% 7/20/34 (GNMA) | 963,000 | 983,156 | |||||
7,256,558 | |||||||
Lease Revenue Bonds – 7.66% | |||||||
California State Public Works Board Lease | |||||||
Revenue (Department of Corrections) | |||||||
Series A 5.00% 3/1/27 (AMBAC) | 1,000,000 | 929,260 | |||||
Elsinore Valley Municipal Water District Certificates of | |||||||
Participation Series A 5.00% 7/1/24 (BHAC) | 1,000,000 | 1,046,290 | |||||
Franklin-McKinley School District Certificates of | |||||||
Participation (Financing Project) | |||||||
Series B 5.00% 9/1/27 (AMBAC) | 1,060,000 | 991,916 |
17
Statements of net assets
Delaware Tax-Free California Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Lease Revenue Bonds (continued) | ||||||||
Puerto Rico Public Buildings Authority Revenue | ||||||||
(Guaranteed Government Facilities) | ||||||||
Series M-2 5.50% 7/1/35 (AMBAC) | $ | 700,000 | $ | 644,168 | ||||
San Diego County Certificates of Participation | ||||||||
5.75% 7/1/31 (MBIA) | 1,000,000 | 972,960 | ||||||
San Diego County Regional Building Authority Lease | ||||||||
Revenue (County Operations & Annexation Center) | ||||||||
Series A 5.375% 2/1/36 | 1,000,000 | 983,880 | ||||||
^ | San Mateo Unified High School District Certificates of | |||||||
Participation Capital Appreciation (Partnership Phase I | ||||||||
Projects) Series B 5.00% 12/15/43 (AMBAC) | 1,000,000 | 474,550 | ||||||
6,043,024 | ||||||||
Local General Obligation Bonds – 15.66% | ||||||||
^ | Anaheim School District Election 2002 | |||||||
4.58% 8/1/25 (MBIA) | 1,250,000 | 480,525 | ||||||
Central Unified School District Election 2008 | ||||||||
Series A 5.625% 8/1/33 (ASSURED GTY) | 1,000,000 | 1,016,120 | ||||||
Desert Community College District Election 2004 | ||||||||
Series C 5.00% 8/1/37 (FSA) | 1,050,000 | 1,012,914 | ||||||
Fairfield-Suisun Unified School District Election 2002 | ||||||||
5.50% 8/1/28 (MBIA) | 500,000 | 510,545 | ||||||
Grossmont Union High School District Election 2004 | ||||||||
5.00% 8/1/23 (MBIA) | 1,000,000 | 1,029,460 | ||||||
Lawndale Elementary School District | ||||||||
Series B 5.00% 8/1/32 (FSA) | 1,000,000 | 983,690 | ||||||
Los Angeles Community College District Election 2001 | ||||||||
Series E-1 5.00% 8/1/33 | 1,000,000 | 971,130 | ||||||
Los Angeles Unified School District | ||||||||
Series B 4.75% 7/1/19 (FSA) | 1,000,000 | 1,067,940 | ||||||
Monterey Peninsula Community College District | ||||||||
Election 2002 Series C 4.50% 8/1/19 (FSA) | 1,000,000 | 1,073,550 | ||||||
San Diego Unified School District | ||||||||
Series E 5.00% 7/1/28 (FSA) | 2,000,000 | 2,138,160 | ||||||
Santa Barbara Community College | ||||||||
Series A 5.25% 8/1/33 | 1,000,000 | 1,011,080 | ||||||
Sierra Joint Community College Improvement District #2 | ||||||||
(Western Nevada) Series A 5.25% 8/1/21 (BHAC) (FGIC) | 1,000,000 | 1,060,520 | ||||||
12,355,634 |
18
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
§Pre-Refunded Bonds – 13.87% | ||||||||
California Department of Water Resources (Central | ||||||||
Valley Project) Series X 5.00% 12/1/29-12 (FGIC) | $ | 5,000 | $ | 5,639 | ||||
California State | ||||||||
5.00% 2/1/33-14 | 1,000,000 | 1,145,310 | ||||||
5.00% 2/1/33-14 (MBIA) | 1,000,000 | 1,145,310 | ||||||
Commerce Joint Powers Financing Authority | ||||||||
Revenue (Redevelopment Projects) | ||||||||
Series A 5.00% 8/1/28-13 (RADIAN) | 60,000 | 68,267 | ||||||
Golden State Tobacco Securitization Settlement | ||||||||
Revenue (Asset-Backed Senior Notes) Series B | ||||||||
5.50% 6/1/43-13 (RADIAN) | 1,000,000 | 1,127,750 | ||||||
5.625% 6/1/33-13 | 1,000,000 | 1,132,800 | ||||||
Puerto Rico Commonwealth Highway & Transportation | ||||||||
Authority Revenue Series K 5.00% 7/1/45-15 | 1,500,000 | 1,742,100 | ||||||
Puerto Rico Commonwealth Series B 5.00% 7/1/35-16 | 1,000,000 | 1,172,250 | ||||||
Puerto Rico Public Buildings Authority Revenue | ||||||||
(Guaranteed Government Facilities) | ||||||||
Series I 5.50% 7/1/23-14 | 1,000,000 | 1,139,240 | ||||||
Sacramento County Airport System Revenue | ||||||||
Series A 5.00% 7/1/32-12 (FSA) | 1,000,000 | 1,114,950 | ||||||
Southern California Logistics Airport Authority | ||||||||
Tax Allocation 6.50% 12/1/31-11 | 1,000,000 | 1,153,550 | ||||||
10,947,166 | ||||||||
Special Tax Revenue Bonds – 10.98% | ||||||||
Commerce Joint Powers Financing Authority Revenue | ||||||||
(Redevelopment Projects) Un-Refunded Balance | ||||||||
Series A 5.00% 8/1/28 (RADIAN) | 940,000 | 748,268 | ||||||
Fremont Community Facilities District #1 | ||||||||
(Special Tax Pacific Commons) 5.375% 9/1/36 | 1,000,000 | 695,270 | ||||||
Lake Elsinore Public Financing Authority Tax Allocation | ||||||||
Series A 5.50% 9/1/30 | 1,000,000 | 816,840 | ||||||
Lammersville School District Community Facilities | ||||||||
District #2002 (Mountain House) 5.125% 9/1/35 | 500,000 | 322,385 | ||||||
Modesto Special Tax Community Facilities | ||||||||
District #04-1 (Village 2) 5.15% 9/1/36 | 1,000,000 | 637,290 | ||||||
@ | Palm Drive Health Care District Parcel Tax | |||||||
Revenue 5.25% 4/1/30 | 2,000,000 | 1,198,240 | ||||||
Poway Redevelopment Agency Tax Allocation | ||||||||
Revenue 5.75% 6/15/33 (MBIA) | 270,000 | 235,624 |
19
Statements of net assets
Delaware Tax-Free California Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Poway Unified School District Community Facilities | ||||||||
District #1 Special Tax Refunding 5.00% 10/1/17 (FSA) | $ | 1,000,000 | $ | 1,125,650 | ||||
Puerto Rico Commonwealth Government Development | ||||||||
Bank Senior Notes Series B 5.00% 12/1/15 | 1,000,000 | 953,430 | ||||||
Roseville Westpark Special Tax Public Community | ||||||||
Facilities District #1 5.25% 9/1/37 | 500,000 | 290,460 | ||||||
San Bernardino County Special Tax Community | ||||||||
Facilities District #2002-1 5.90% 9/1/33 | 2,000,000 | 1,642,540 | ||||||
8,665,997 | ||||||||
State General Obligation Bonds – 4.83% | ||||||||
California State Various Purpose 5.50% 11/1/33 | 1,000,000 | 998,570 | ||||||
· | California State Veterans Series BJ 5.70% 12/1/32 (AMT) | 640,000 | 577,101 | |||||
Puerto Rico Commonwealth Public Improvement Series A | ||||||||
5.00% 7/1/16 (ASSURED GTY) | 540,000 | 540,292 | ||||||
5.25% 7/1/15 | 1,750,000 | 1,699,372 | ||||||
3,815,335 | ||||||||
Transportation Revenue Bonds – 3.48% | ||||||||
Bay Area Toll Authority Bridge Revenue | ||||||||
Series F 5.00% 4/1/22 | 1,000,000 | 1,050,040 | ||||||
Port of Oakland Revenue | ||||||||
Series L 5.375% 11/1/27 (FGIC) (AMT) | 1,000,000 | 843,910 | ||||||
San Diego Redevelopment Agency (Centre City | ||||||||
Redevelopment Project) Series A 6.40% 9/1/25 | 1,000,000 | 850,300 | ||||||
2,744,250 | ||||||||
Water & Sewer Revenue Bonds – 7.95% | ||||||||
California Department of Water Resources Systems | ||||||||
Revenue (Central Valley Project) | ||||||||
Series A 5.00% 12/1/22 | 1,000,000 | 1,073,020 | ||||||
Series A 5.00% 12/1/24 | 1,000,000 | 1,051,540 | ||||||
Un-Refunded Balance Series X 5.00% 12/1/29 (FGIC) | 995,000 | 996,612 | ||||||
Glendale Water Revenue 4.00% 2/1/18 (FSA) | 1,120,000 | 1,185,598 | ||||||
Los Angeles Department of Water & Power Systems | ||||||||
Revenue Series A 5.00% 7/1/39 | 1,000,000 | 974,040 | ||||||
Metropolitan Water District Southern California Waterworks | ||||||||
Authority Revenue Series B-1 5.00% 10/1/36 (FGIC) | 1,000,000 | 996,980 | ||||||
6,277,790 | ||||||||
Total Municipal Bonds (cost $82,014,562) | 75,984,422 |
20
Number of shares | Value | |||||||
Short-Term Investments – 2.72% | ||||||||
Money Market Instrument – 1.45% | ||||||||
Federated California Municipal Cash Trust | 1,144,744 | $ | 1,144,744 | |||||
1,144,744 | ||||||||
Principal amount | ||||||||
·Variable Rate Demand Note – 1.27% | ||||||||
California State Department of Water Resources & Power | ||||||||
Supply Revenue Subseries F-4 0.35% 5/1/22 | $ | 1,000,000 | 1,000,000 | |||||
1,000,000 | ||||||||
Total Short-Term Investments (cost $2,144,744) | 2,144,744 | |||||||
Total Value of Securities – 99.00% | ||||||||
(cost $84,159,306) | 78,129,166 | |||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 1.00% | 792,564 | |||||||
Net Assets Applicable to 7,814,295 | ||||||||
Shares Outstanding – 100.00% | $ | 78,921,730 | ||||||
Net Asset Value – Delaware Tax-Free California Fund | ||||||||
Class A ($60,647,310 / 6,008,153 Shares) | $10.09 | |||||||
Net Asset Value – Delaware Tax-Free California Fund | ||||||||
Class B ($5,332,613 / 526,137 Shares) | $10.14 | |||||||
Net Asset Value – Delaware Tax-Free California Fund | ||||||||
Class C ($12,941,807 / 1,280,005 Shares) | $10.11 | |||||||
Components of Net Assets at February 28, 2009: | ||||||||
Shares of beneficial interest (unlimited authorization – no par) | $ | 86,657,165 | ||||||
Undistributed net investment income | 2,943 | |||||||
Accumulated net realized loss on investments | (1,708,238 | ) | ||||||
Net unrealized depreciation of investments | (6,030,140 | ) | ||||||
Total net assets | $ | 78,921,730 |
21
Statements of net assets
Delaware Tax-Free California Fund
· | Variable rate security. The rate shown is the rate as of February 28, 2009. |
^ | Zero coupon security. The rate shown is the yield at the time of purchase. |
§ | Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.” |
@ | Illiquid security. At February 28, 2009, the aggregate amount of illiquid securities was $1,198,240, which represented 1.52% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
Summary of abbreviations:
ACA — Insured by American Capital Access
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
BHAC — Insured by the Berkshire Hathaway Assurance Company
FGIC — Insured by the Financial Guaranty Insurance Company
FNMA — Federal National Mortgage Association collateral
FSA — Insured by Financial Security Assurance
GNMA — Government National Mortgage Association collateral
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance
Net Asset Value and Offering Price Per Share – | ||
Delaware Tax-Free California Fund | ||
Net asset value Class A (A) | $ | 10.09 |
Sales charge (4.50% of offering price) (B) | 0.48 | |
Offering price | $ | 10.57 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $100,000 or more. |
See accompanying notes
22
Delaware Tax-Free Colorado Fund | February 28, 2009 (Unaudited) |
Principal amount | Value | |||||||
Municipal Bonds – 98.47% | ||||||||
Education Revenue Bonds – 10.48% | ||||||||
Boulder County Development Revenue | ||||||||
(University Corporation for Atmospheric Research) | ||||||||
5.00% 9/1/33 (MBIA) | $ | 1,000,000 | $ | 952,510 | ||||
5.00% 9/1/35 (AMBAC) | 1,000,000 | 950,710 | ||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(Charter School Project) 5.50% 5/1/36 (XLCA) | 2,280,000 | 1,932,004 | ||||||
(Johnson & Wales University Project) | ||||||||
Series A 5.00% 4/1/28 (XLCA) | 1,000,000 | 833,370 | ||||||
(Liberty Common Charter School Project) | ||||||||
5.125% 12/1/33 (XLCA) | 2,740,000 | 2,227,236 | ||||||
(Montessori Districts Charter School Projects) | ||||||||
6.125% 7/15/32 | 5,590,000 | 4,198,481 | ||||||
(Pinnacle Charter School Project) | ||||||||
5.00% 6/1/33 (XLCA) | 2,170,000 | 1,734,850 | ||||||
(University of Northern Colorado Student Housing | ||||||||
Project) 5.125% 7/1/37 (MBIA) | 5,505,000 | 4,433,837 | ||||||
(Woodrow Wilson Charter School Project) | ||||||||
5.25% 12/1/34 (XLCA) | 1,960,000 | 1,613,276 | ||||||
Colorado School Mines Auxillary Facilities | ||||||||
Revenue 5.00% 12/1/37 (AMBAC) | 425,000 | 403,253 | ||||||
University of Colorado Enterprise System | ||||||||
Revenue Series A | ||||||||
5.00% 6/1/30 (AMBAC) | 2,000,000 | 2,005,880 | ||||||
5.375% 6/1/26 | 1,000,000 | 1,008,050 | ||||||
University of Puerto Rico Revenue | ||||||||
Series Q 5.00% 6/1/36 | 2,750,000 | 1,987,068 | ||||||
24,280,525 | ||||||||
Electric Revenue Bonds – 5.35% | ||||||||
Colorado Springs Utilities Revenue | ||||||||
Series A 5.00% 11/15/29 | 5,000,000 | 5,012,200 | ||||||
Platte River Power Authority Colorado Revenue Series HH | ||||||||
5.00% 6/1/27 | 2,795,000 | 2,857,859 | ||||||
5.00% 6/1/29 | 2,355,000 | 2,383,119 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series WW 5.00% 7/1/28 | 2,400,000 | 2,134,824 | ||||||
12,388,002 |
23
Statements of net assets
Delaware Tax-Free Colorado Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Escrowed to Maturity Bonds – 2.37% | ||||||||
Colorado Health Facilities Authority Revenue | ||||||||
(Catholic Health Initiatives) Series A 5.50% 3/1/32 | $ | 5,000,000 | $ | 5,259,450 | ||||
Galleria Metropolitan District 7.25% 12/1/09 | 230,000 | 241,459 | ||||||
5,500,909 | ||||||||
Health Care Revenue Bonds – 13.30% | ||||||||
Aurora Hospital Revenue (Children’s Hospital) | ||||||||
Series D 5.00% 12/1/23 (FSA) | 2,775,000 | 2,727,048 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(Adventist Health/Sunbelt) Series E 5.125% 11/15/24 | 1,375,000 | 1,260,091 | ||||||
(Catholic Health Initiatives) | ||||||||
Series A 4.75% 9/1/40 | 1,000,000 | 848,200 | ||||||
Series D 6.25% 10/1/33 | 2,000,000 | 2,068,360 | ||||||
(Christian Living Community Project) | ||||||||
Series A 5.75% 1/1/37 | 1,500,000 | 965,025 | ||||||
(Covenant Retirement Communities) | ||||||||
Series A 5.50% 12/1/33 (RADIAN) | 5,000,000 | 3,411,550 | ||||||
(Evangelical Lutheran) | ||||||||
5.00% 6/1/35 | 2,000,000 | 1,441,080 | ||||||
Series A 5.25% 6/1/34 | 2,750,000 | 2,071,850 | ||||||
(Parkview Medical Center) 5.00% 9/1/25 | 1,000,000 | 871,920 | ||||||
(Porter Place) Series A 6.00% 1/20/36 (GNMA) | 5,000,000 | 5,024,649 | ||||||
(Vail Valley Medical Center Project) 5.80% 1/15/27 | 3,475,000 | 3,067,522 | ||||||
(Valley View Hospital Association) 5.50% 5/15/28 | 1,000,000 | 825,770 | ||||||
Delta County Memorial Hospital District Enterprise | ||||||||
Revenue 5.35% 9/1/17 | 4,000,000 | 3,713,960 | ||||||
Denver Health & Hospital Authority Health Care | ||||||||
Revenue Series A 4.75% 12/1/36 | 1,500,000 | 940,470 | ||||||
Mesa County Residential Care Facilities Mortgage Revenue | ||||||||
(Hilltop Community Resources) | ||||||||
Series A 5.375% 12/1/28 (RADIAN) | 475,000 | 356,535 | ||||||
University of Colorado Hospital Authority Revenue | ||||||||
Series A 5.00% 11/15/37 | 1,690,000 | 1,218,237 | ||||||
30,812,267 | ||||||||
Housing Revenue Bonds – 1.56% | ||||||||
Colorado Housing & Finance Authority | ||||||||
(Multifamily Housing Insured Mortgage) | ||||||||
Series C3 6.15% 10/1/41 | 1,590,000 | 1,595,883 | ||||||
Puerto Rico Housing Finance Authority Subordinate | ||||||||
Capital Foundation Modernization 5.125% 12/1/27 | 2,040,000 | 2,024,047 | ||||||
3,619,930 |
24
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Lease Revenue Bonds – 2.73% | ||||||||
Colorado Educational & Cultural National | ||||||||
Conference of State Legislatures Office Building | ||||||||
Facilities Authority Revenue 5.25% 6/1/21 | $ | 2,000,000 | $ | 2,012,320 | ||||
@ | Conejos & Alamosa Counties School #11J | |||||||
Certificates of Participation 6.50% 4/1/11 | 675,000 | 675,189 | ||||||
El Paso County Certificates of Participation (Detention | ||||||||
Facilities Project) Series B 5.00% 12/1/27 (AMBAC) | 1,500,000 | 1,489,065 | ||||||
Puerto Rico Public Buildings Authority Revenue | ||||||||
(Guaranteed Government Facilities) | ||||||||
Series I 5.25% 7/1/33 | 1,475,000 | 1,227,495 | ||||||
Series M-2 5.50% 7/1/35 (AMBAC) | 1,000,000 | 920,240 | ||||||
6,324,309 | ||||||||
Local General Obligation Bonds – 14.50% | ||||||||
Adams & Arapahoe Counties Joint School District | ||||||||
#28J (Aurora) 6.00% 12/1/28 | 2,500,000 | 2,733,450 | ||||||
Arapahoe County Water & Wastewater Public | ||||||||
Improvement District Refunding | ||||||||
Series A 5.125% 12/1/32 (MBIA) | 2,555,000 | 2,402,773 | ||||||
Boulder Larimer & Weld Counties (St. Vrain Valley | ||||||||
School District #1J) 5.00% 12/15/33 | 2,500,000 | 2,489,250 | ||||||
Denver City & County Justice System | ||||||||
5.50% 8/1/16 | 5,000,000 | 5,915,399 | ||||||
(Facilities & Zoo) 5.00% 8/1/19 | 1,020,000 | 1,136,668 | ||||||
Denver West Metropolitan District | ||||||||
5.00% 12/1/33 (RADIAN) | 1,400,000 | 998,830 | ||||||
Douglas County School District #1 | ||||||||
(Douglas & Elbert Counties) Series B | ||||||||
5.00% 12/15/24 | 2,355,000 | 2,438,014 | ||||||
5.125% 12/15/25 (FSA) | 2,000,000 | 2,028,420 | ||||||
El Paso County School District #2 (Harrison) | ||||||||
5.00% 12/1/27 (MBIA) | 2,115,000 | 2,117,707 | ||||||
Garfield County School District #2 | ||||||||
5.00% 12/1/25 (FSA) | 3,280,000 | 3,397,163 | ||||||
Grand County School District #2 (East Grand) | ||||||||
5.25% 12/1/25 (FSA) | 2,485,000 | 2,580,424 | ||||||
Gunnison Watershed Colorado School District #1J | ||||||||
Series 2009 5.25% 12/1/33 | 1,400,000 | 1,428,826 | ||||||
La Plata County School District #9-R (Durango) | ||||||||
5.125% 11/1/24 (MBIA) | 1,000,000 | 1,027,310 |
25
Statements of net assets
Delaware Tax-Free Colorado Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Local General Obligation Bonds (continued) | ||||||||
@ | North Range Metropolitan | |||||||
District #1 4.50% 12/15/31 (ACA) | $ | 1,500,000 | $ | 680,865 | ||||
District #2 5.50% 12/15/37 | 1,200,000 | 612,960 | ||||||
Sand Creek Metropolitan District Refunding & | ||||||||
Improvement 5.00% 12/1/31 (XLCA) | 500,000 | 398,435 | ||||||
Weld County School District #4 5.00% 12/1/19 (FSA) | 1,085,000 | 1,216,220 | ||||||
33,602,714 | ||||||||
§Pre-Refunded Bonds – 34.21% | ||||||||
Aurora Certificates of Participation | ||||||||
5.50% 12/1/30-10 (AMBAC) | 8,000,000 | 8,606,400 | ||||||
Boulder County Hospital Revenue (Development Longmont | ||||||||
United Hospital Project) | ||||||||
6.00% 12/1/30-10 (RADIAN) | 5,000,000 | 5,418,800 | ||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(Littleton Academy Charter School Project) | ||||||||
6.125% 1/15/31-12 | 2,000,000 | 2,251,740 | ||||||
(Renaissance Charter School Project) 6.75% 6/1/29-09 | 2,000,000 | 2,028,200 | ||||||
(Stargate Charter School Project) 6.125% 5/1/33-13 | 2,000,000 | 2,324,820 | ||||||
(University of Denver Project) | ||||||||
5.375% 3/1/23-11 (AMBAC) | 2,000,000 | 2,162,601 | ||||||
Series A 5.00% 3/1/27-12 (MBIA) | 5,000,000 | 5,502,150 | ||||||
Colorado Health Facilities Authority Revenue (Adventist | ||||||||
Health/Sunbelt) 5.125% 11/15/24-16 | 75,000 | 88,207 | ||||||
Colorado School Mines Auxillary Facilities | ||||||||
5.00% 12/1/37-12 (AMBAC) | 2,705,000 | 3,035,984 | ||||||
Colorado Springs Revenue (Colorado College Project) | ||||||||
5.375% 6/1/32-09 | 2,570,000 | 2,628,416 | ||||||
E-470 Public Highway Authority | ||||||||
Series A 5.75% 9/1/35-10 (MBIA) | 3,100,000 | 3,367,251 | ||||||
El Paso County Certificates of Participation (Judicial | ||||||||
Building Project) Series A 5.00% 12/1/27-12 (AMBAC) | 2,000,000 | 2,224,580 | ||||||
El Paso County School District #49 (Falcon) | ||||||||
5.50% 12/1/21-11 (FGIC) | 2,000,000 | 2,217,720 | ||||||
Fremont County School District #1 (Canon City) | ||||||||
5.00% 12/1/24-13 (MBIA) | 1,735,000 | 1,984,805 | ||||||
Garfield Pitkin & Eagle County School District #1 | ||||||||
(Roaring Fork County) Series A 5.00% 12/15/27-14 (FSA) | 1,500,000 | 1,730,220 | ||||||
Lincoln Park Metropolitan District 7.75% 12/1/26-11 | 2,500,000 | 2,908,050 |
26
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
§Pre-Refunded Bonds (continued) | ||||||||
North Range Metropolitan District #1 | ||||||||
7.25% 12/15/31-11 | $ | 3,390,000 | $ | 3,878,262 | ||||
Northwest Parkway Public Highway Authority | ||||||||
Series A 5.25% 6/15/41-11 (FSA) | 11,100,000 | 12,194,126 | ||||||
Pueblo County Certificates of Participation | ||||||||
6.50% 12/1/24-10 | 5,460,000 | 5,964,777 | ||||||
Puerto Rico Commonwealth | ||||||||
Series A 5.25% 7/1/30-16 | 1,235,000 | 1,468,390 | ||||||
Series B 5.00% 7/1/35-16 | 310,000 | 363,398 | ||||||
Puerto Rico Commonwealth Highway & Transportation | ||||||||
Authority Revenue Series K 5.00% 7/1/40-15 | 2,500,000 | 2,903,500 | ||||||
Puerto Rico Public Buildings Authority Revenue | ||||||||
(Guaranteed Government Facilities) | ||||||||
Series I 5.25% 7/1/33-14 | 25,000 | 28,172 | ||||||
University of Colorado Hospital Authority Revenue | ||||||||
Series A 5.60% 11/15/31-11 | 3,650,000 | 3,986,603 | ||||||
79,267,172 | ||||||||
Special Tax Revenue Bonds – 6.02% | ||||||||
Aspen Sales Tax Revenue (Parks & Open Spaces) | ||||||||
Series B 5.25% 11/1/23 (FSA) | 2,040,000 | 2,141,062 | ||||||
@ | Baptist Road Rural Transportation Authority Sales & | |||||||
Use Tax Revenue 5.00% 12/1/26 | 2,000,000 | 1,128,000 | ||||||
Loveland Special Improvements District #1 7.50% 7/1/29 | 4,980,000 | 5,474,762 | ||||||
Park Meadows Business Improvement District | ||||||||
Shared Sales Tax Revenue | ||||||||
5.30% 12/1/27 | 950,000 | 597,313 | ||||||
5.35% 12/1/31 | 720,000 | 428,033 | ||||||
Puerto Rico Commonwealth Government Development | ||||||||
Bank Senior Notes Series B 5.00% 12/1/15 | 1,000,000 | 953,430 | ||||||
Puerto Rico Commonwealth Infrastructure Financing | ||||||||
Authority Special Tax Revenue Series B 5.00% 7/1/46 | 1,200,000 | 916,164 | ||||||
Regional Transportation District Sales Tax Revenue | ||||||||
Series A 5.25% 11/1/18 | 2,000,000 | 2,301,080 | ||||||
13,939,844 | ||||||||
State General Obligation Bonds – 3.70% | ||||||||
Rico Commonwealth | ||||||||
Series A 5.25% 7/1/30 | 765,000 | 650,686 | ||||||
Series B 5.00% 7/1/35 | 190,000 | 151,056 |
27
Statements of net assets
Delaware Tax-Free Colorado Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
State General Obligation Bonds (continued) | ||||||||
Puerto Rico Commonwealth Government Development | ||||||||
Bank Senior Notes Series B 5.00% 12/1/14 | $ | 1,000,000 | $ | 963,520 | ||||
Puerto Rico Commonwealth Public Improvement Series A | ||||||||
5.25% 7/1/15 | 1,650,000 | 1,602,266 | ||||||
5.25% 7/1/21 | 4,000,000 | 3,636,599 | ||||||
Virgin Islands Public Finance Authority | ||||||||
(Gross Receipts Taxes) 5.00% 10/1/31 (ACA) | 2,000,000 | 1,567,120 | ||||||
8,571,247 | ||||||||
Transportation Revenue Bonds – 2.51% | ||||||||
Denver City & County Airport Revenue | ||||||||
Series A 5.00% 11/15/25 (MBIA) | 2,000,000 | 2,017,700 | ||||||
Series B 5.00% 11/15/33 (XLCA) | 4,000,000 | 3,798,440 | ||||||
5,816,140 | ||||||||
Water & Sewer Revenue Bonds – 1.74% | ||||||||
Pueblo Board Waterworks Revenue | ||||||||
5.00% 11/1/21 (FSA) | 1,000,000 | 1,044,330 | ||||||
Ute Water Conservancy District Revenue | ||||||||
5.75% 6/15/20 (MBIA) | 2,900,000 | 2,983,143 | ||||||
4,027,473 | ||||||||
Total Municipal Bonds (cost $234,554,990) | 228,150,532 | |||||||
Number of shares | ||||||||
Short Term-Investment – 0.14% | ||||||||
Money Market Instrument – 0.14% | ||||||||
Dreyfus Cash Management Fund | 340,264 | 340,264 | ||||||
Total Short-Term Investment (cost $340,264) | 340,264 | |||||||
Total Value of Securities – 98.61% | ||||||||
(cost $234,895,254) | 228,490,796 | |||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 1.39% | 3,212,969 | |||||||
Net Assets Applicable to 22,893,552 | ||||||||
Shares Outstanding – 100.00% | $ | 231,703,765 |
28
Net Asset Value – Delaware Tax-Free Colorado Fund | |||
Class A ($218,943,351 / 21,635,089 Shares) | $10.12 | ||
Net Asset Value – Delaware Tax-Free Colorado Fund | |||
Class B ($3,173,111 / 313,330 Shares) | $10.13 | ||
Net Asset Value – Delaware Tax-Free Colorado Fund | |||
Class C ($9,587,303 / 945,133 Shares) | $10.14 | ||
Components of Net Assets at February 28, 2009: | |||
Shares of beneficial interest (unlimited authorization – no par) | $246,899,640 | ||
Undistributed net investment income | 2,866 | ||
Accumulated net realized loss on investments | (8,794,283 | ) | |
Net unrealized depreciation of investments | (6,404,458 | ) | |
Total net assets | $231,703,765 |
@ | Illiquid security. At February 28, 2009, the aggregate amount of illiquid securities was $3,097,014, which represented 1.34% of the Fund’s net assets. See Note 8 in “Notes to financial statements.” |
§ | Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.” |
Summary of abbreviations:
ACA — Insured by American Capital Access
AMBAC — Insured by the AMBAC Assurance Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
FSA — Insured by Financial Security Assurance
GNMA — Government National Mortgage Association collateral
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance
XLCA — Insured by XL Capital Assurance
29
Statements of net assets
Delaware Tax-Free Colorado Fund
Net Asset Value and Offering Price Per Share – | ||
Delaware Tax-Free Colorado Fund | ||
Net asset value Class A (A) | $ | 10.12 |
Sales charge (4.50% of offering price) (B) | 0.48 | |
Offering price | $ | 10.60 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $100,000 or more. |
See accompanying notes
30
Delaware Tax-Free Idaho Fund | February 28, 2009 (Unaudited) |
Principal amount | Value | ||||||
Municipal Bonds – 97.89% | |||||||
Corporate Revenue Bonds – 5.45% | |||||||
Meridian Economic Industrial Development Revenue | |||||||
(Hi-Micro Project) 5.85% 8/15/11 (AMT) | $ | 965,000 | $ | 966,969 | |||
Nez Perce County Pollution Control Revenue | |||||||
(Potlatch Project) 6.00% 10/1/24 | 2,535,000 | 1,745,905 | |||||
Power County Pollution Control Revenue | |||||||
(FMC Project) 5.625% 10/1/14 | 2,475,000 | 2,236,014 | |||||
4,948,888 | |||||||
Education Revenue Bonds – 11.20% | |||||||
Boise State University Revenue | |||||||
5.00% 4/1/17 (AMBAC) | 500,000 | 539,850 | |||||
5.375% 4/1/22 (FGIC) | 15,000 | 15,515 | |||||
Series A 4.25% 4/1/32 (MBIA) | 1,500,000 | 1,266,810 | |||||
Series A 5.00% 4/1/18 (FGIC) | 1,500,000 | 1,596,179 | |||||
Series A 5.00% 4/1/39 | 1,000,000 | 973,160 | |||||
Idaho State University Revenue Refunding & Improvement | |||||||
5.00% 4/1/20 (FSA) | 1,130,000 | 1,179,189 | |||||
5.00% 4/1/23 (FSA) | 2,115,000 | 2,148,522 | |||||
University of Idaho (General Refunding) | |||||||
Series A 5.00% 4/1/21 (AMBAC) | 1,150,000 | 1,195,207 | |||||
Series B 4.50% 4/1/41 (FSA) | 1,000,000 | 1,085,000 | |||||
University of Puerto Rico Revenue | |||||||
Series Q 5.00% 6/1/36 | 250,000 | 180,643 | |||||
10,180,075 | |||||||
Electric Revenue Bonds – 1.10% | |||||||
Boise-Kuna Irrigation District Revenue | |||||||
(Arrowrock Hydroelectric Project) 6.30% 6/1/31 | 1,000,000 | 1,001,270 | |||||
1,001,270 | |||||||
Escrowed to Maturity Bonds – 2.05% | |||||||
Puerto Rico Commonwealth Infrastructure Financing | |||||||
Authority Revenue Series A 5.375% 10/1/24 | 1,750,000 | 1,860,302 | |||||
1,860,302 | |||||||
Health Care Revenue Bonds – 6.00% | |||||||
Idaho Health Facilities Authority Hospital Revenue | |||||||
(Idaho Elks Rehabilitation Hospital Project) | |||||||
5.30% 7/15/18 | 625,000 | 605,438 | |||||
5.45% 7/15/23 | 2,000,000 | 1,792,580 |
31
Statements of net assets
Delaware Tax-Free Idaho Fund
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Health Care Revenue Bonds (continued) | ||||||||
Idaho Health Facilities Authority Revenue | ||||||||
(Portneuf Medical Center Project) | ||||||||
Series A 5.00% 9/1/35 (RADIAN) | $ | 1,000,000 | $ | 1,000,740 | ||||
(St. Luke’s Medical Center Project) 6.75% 11/1/37 | 1,000,000 | 1,023,760 | ||||||
(Trinity Health Credit Group) Series B 6.125% 12/1/28 | 1,000,000 | 1,033,270 | ||||||
5,455,788 | ||||||||
Housing Revenue Bonds – 6.86% | ||||||||
Idaho Housing Agency Single Family Mortgage Revenue | ||||||||
Series A 6.05% 7/1/13 (AMBAC) (FHA) (VA) (AMT) | 25,000 | 25,032 | ||||||
Series A 6.10% 7/1/16 (FHA) (VA) (AMT) | 30,000 | 30,046 | ||||||
Series A-1 6.85% 7/1/12 (AMT) | 5,000 | 5,013 | ||||||
Series B 6.45% 7/1/15 (AMT) | 15,000 | 15,019 | ||||||
Series C-2 6.35% 7/1/15 (AMT) | 15,000 | 15,017 | ||||||
Series E 6.35% 7/1/15 (FHA) (AMT) | 25,000 | 25,029 | ||||||
Series G-2 6.15% 7/1/15 (FHA) (VA) (AMT) | 115,000 | 115,124 | ||||||
Idaho Housing & Finance Association | ||||||||
Single Family Mortgage Revenue | ||||||||
Series B Class I 5.00% 7/1/37 (AMT) | 840,000 | 761,023 | ||||||
Series C Class III 5.35% 1/1/25 (AMT) | 270,000 | 261,023 | ||||||
Series D Class III 5.45% 7/1/23 (AMT) | 900,000 | 903,033 | ||||||
Series E Class III 4.875% 1/1/26 (AMT) | 1,345,000 | 1,236,700 | ||||||
Series E Class III 5.00% 1/1/28 (AMT) | 925,000 | 877,955 | ||||||
Series I Class I 5.45% 1/1/39 (AMT) | 1,000,000 | 967,040 | ||||||
Puerto Rico Housing Finance Authority Subordinate- | ||||||||
Capital Foundation Modernization 5.125% 12/1/27 | 1,000,000 | 992,180 | ||||||
6,229,234 | ||||||||
Lease Revenue Bonds – 5.49% | ||||||||
Blaine School District #61 Certificate of Participation | ||||||||
5.00% 7/30/10 (AMBAC) | 750,000 | 775,515 | ||||||
Boise City Certificate of Participation | ||||||||
5.375% 9/1/20 (FGIC) (AMT) | 2,100,000 | 2,015,055 | ||||||
Boise City Revenue Series A 5.375% 12/1/31 (MBIA) | 500,000 | 500,910 | ||||||
Idaho State Building Authority Revenue | ||||||||
Series A 5.00% 9/1/43 (XLCA) | 1,000,000 | 933,560 | ||||||
Series B 5.00% 9/1/21 (MBIA) | 750,000 | 762,900 | ||||||
4,987,940 |
32
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
Local General Obligation Bonds – 25.82% | |||||||
Ada & Canyon Counties Joint School District #2 | |||||||
Meridian (School Board Guaranteed Program) | |||||||
4.75% 2/15/20 | $ | 1,000,000 | $ | 1,069,500 | |||
5.00% 7/30/20 | 600,000 | 634,860 | |||||
5.125% 7/30/19 | 1,005,000 | 1,072,305 | |||||
5.50% 7/30/16 | 1,305,000 | 1,537,225 | |||||
Bannock County School District #025 | |||||||
(Pocatello Idaho School Board Guaranteed Program) | |||||||
5.00% 8/15/15 | 1,040,000 | 1,177,467 | |||||
5.00% 8/15/16 | 1,100,000 | 1,233,122 | |||||
Boise City Independent School District | |||||||
5.00% 8/1/24 (FSA) | 1,500,000 | 1,581,990 | |||||
Canyon County Idaho School District # 132 (Caldwell) | |||||||
5.00% 7/30/15 (FGIC) (MBIA) | 2,000,000 | 2,194,380 | |||||
Series A 5.00% 9/15/22 (FSA) | 1,725,000 | 1,876,041 | |||||
Series A 5.00% 9/15/23 (FSA) | 1,810,000 | 1,940,447 | |||||
Idaho Board Bank Authority Revenue | |||||||
Series B 5.00% 9/15/28 | 1,000,000 | 1,010,210 | |||||
Lemhi County 5.20% 8/1/27 (FSA) | 2,145,000 | 2,170,719 | |||||
Nampa Idaho 5.00% 8/1/21 (FGIC) | 2,475,000 | 2,560,783 | |||||
Power & Cassia Counties Joint School District #381 | |||||||
(American Falls) 5.00% 8/1/17 | 1,155,000 | 1,231,288 | |||||
Twin Falls County Idaho School District #413 (Filer) | |||||||
5.25% 9/15/25 | 2,000,000 | 2,167,040 | |||||
23,457,377 | |||||||
§Pre-Refunded Bonds – 15.75% | |||||||
Ada & Canyon Counties Joint School District # 2 | |||||||
Meridan (School Board Guaranteed Program) | |||||||
5.00% 7/30/20-12 | 1,555,000 | 1,728,585 | |||||
Boise State University Revenue Refunding & Improvement | |||||||
5.125% 4/1/31-12 (FGIC) | 1,000,000 | 1,106,790 | |||||
5.375% 4/1/22-12 (FGIC) | 985,000 | 1,097,595 | |||||
Puerto Rico Commonwealth Highway & Transportation | |||||||
Authority Revenue | |||||||
Series D 5.25% 7/1/38-12 | 1,000,000 | 1,108,200 | |||||
Series G 5.00% 7/1/33-13 | 1,310,000 | 1,485,868 | |||||
Series Y 5.00% 7/1/36-16 | 1,250,000 | 1,465,313 | |||||
Puerto Rico Commonwealth Public Improvement Revenue | |||||||
Series A 5.125% 7/1/31-11 | 1,010,000 | 1,100,991 |
33
Statements of net assets
Delaware Tax-Free Idaho Fund
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
§Pre-Refunded Bonds (continued) | |||||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series II 5.25% 7/1/31-12 | $ | 1,000,000 | $ | 1,131,190 | |||
Series NN 5.125% 7/1/29-13 | 500,000 | 570,069 | |||||
Puerto Rico Public Buildings Authority Revenue | |||||||
(Guaranteed Government Facilities) | |||||||
Series I 5.50% 7/1/23-14 | 1,000,000 | 1,139,240 | |||||
University of Idaho Revenue (Student Fee Housing | |||||||
Improvements Project) 5.25% 4/1/31-11 (FGIC) | 2,195,000 | 2,374,265 | |||||
14,308,106 | |||||||
Special Tax Revenue Bonds – 7.29% | |||||||
Boise Urban Renewal Agency Parking | |||||||
Revenue (Tax Increment) | |||||||
Series A 6.125% 9/1/15 | 1,315,000 | 1,316,459 | |||||
Series B 6.125% 9/1/15 | 1,075,000 | 1,076,193 | |||||
Bonner County Local Improvement District #93-1 | |||||||
6.50% 4/30/10 | 60,000 | 60,127 | |||||
Coeur D’Alene Local Improvement District #6 | |||||||
Series 1995 6.00% 7/1/09 | 85,000 | 85,921 | |||||
Series 1996 6.05% 7/1/10 | 90,000 | 90,951 | |||||
Series 1997 6.10% 7/1/12 | 40,000 | 40,334 | |||||
Series 1998 6.10% 7/1/14 | 45,000 | 45,291 | |||||
Idaho Board Bank Authority Revenue Series B | |||||||
4.125% 9/15/36 (MBIA) | 755,000 | 612,139 | |||||
5.00% 9/15/30 (MBIA) | 725,000 | 727,240 | |||||
Puerto Rico Commonwealth Highway & Transportation | |||||||
Authority Revenue Series W 5.50% 7/1/15 | 175,000 | 172,232 | |||||
Puerto Rico Sales Tax Financing Revenue | |||||||
Series A 5.25% 8/1/57 | 1,000,000 | 835,110 | |||||
Virgin Islands Public Finance Authority Revenue | |||||||
(Senior Lien-Matching Fund Loan Note) Series A | |||||||
5.25% 10/1/20 | 500,000 | 446,800 | |||||
5.25% 10/1/21 | 500,000 | 436,820 | |||||
5.25% 10/1/24 | 800,000 | 674,048 | |||||
6,619,665 | |||||||
State General Obligation Bonds – 2.65% | |||||||
Puerto Rico Commonwealth Public Improvement Series A | |||||||
5.125% 7/1/31 | 1,815,000 | 1,507,956 | |||||
5.25% 7/1/22 | 1,000,000 | 901,070 | |||||
2,409,026 |
34
Principal amount | Value | |||||||
Municipal Bonds (continued) | ||||||||
Transportation Revenue Bonds – 4.66% | ||||||||
Idaho Housing & Finance Association Grant Revenue | ||||||||
(Anticipated Federal Highway Trust) | ||||||||
5.00% 7/15/24 (MBIA) | $ | 2,000,000 | $ | 2,083,680 | ||||
5.25% 7/15/25 (ASSURED GTY) | 1,500,000 | 1,592,925 | ||||||
Puerto Rico Commonwealth Highway & Transportation | ||||||||
Authority Revenue Series G 5.00% 7/1/33 | 690,000 | 553,559 | ||||||
4,230,164 | ||||||||
Water & Sewer Revenue Bonds – 3.57% | ||||||||
Idaho Bond Bank Authority Revenue Series C | ||||||||
5.375% 9/1/16 | 1,000,000 | 1,022,830 | ||||||
Moscow Sewer Revenue 5.00% 11/1/22 (FSA) | 2,175,000 | 2,218,739 | ||||||
3,241,569 | ||||||||
Total Municipal Bonds (cost $89,222,751) | 88,929,404 | |||||||
Number of shares | ||||||||
Short-Term Investment – 1.99% | ||||||||
Money Market Instrument – 1.99% | ||||||||
Dreyfus Cash Management Fund | 1,808,356 | 1,808,356 | ||||||
Total Short-Term Investment (cost $1,808,356) | 1,808,356 | |||||||
Total Value of Securities – 99.88% | ||||||||
(cost $91,031,107) | 90,737,760 | |||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 0.12% | 106,786 | |||||||
Net Assets Applicable to 8,193,690 | ||||||||
Shares Outstanding – 100.00% | $ | 90,844,546 | ||||||
Net Asset Value – Delaware Tax-Free Idaho Fund | ||||||||
Class A ($74,448,311 / 6,713,603 Shares) | $11.09 | |||||||
Net Asset Value – Delaware Tax-Free Idaho Fund | ||||||||
Class B ($4,455,559 / 402,536 Shares) | $11.07 | |||||||
Net Asset Value – Delaware Tax-Free Idaho Fund | ||||||||
Class C ($11,940,676 / 1,077,551 Shares) | $11.08 |
35
Statements of net assets
Delaware Tax-Free Idaho Fund
Components of Net Assets at February 28, 2009: | |||
Shares of beneficial interest (unlimited authorization – no par) | $ | 91,441,146 | |
Distributions in excess of net investment income | (11,699 | ) | |
Accumulated net realized loss on investments | (291,554 | ) | |
Net unrealized depreciation of investments | (293,347 | ) | |
Total net assets | $ | 90,844,546 |
§ | Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.” |
Summary of abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to the Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
FSA — Insured by Financial Security Assurance
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance
VA — Insured by the Veterans Administration
XLCA — Insured by XL Capital Assurance
Net Asset Value and Offering Price Per Share – | ||
Delaware Tax-Free Idaho Fund | ||
Net asset value Class A (A) | $ | 11.09 |
Sales charge (4.50% of offering price) (B) | 0.52 | |
Offering price | $ | 11.61 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $100,000 or more. |
See accompanying notes
36
Delaware Tax-Free New York Fund | February 28, 2009 (Unaudited) |
Principal amount | Value | ||||||
Municipal Bonds – 96.99% | |||||||
Corporate Revenue Bonds – 4.48% | |||||||
New York City Industrial Development Agency Revenue | |||||||
(Brooklyn Navy Yard Cogen Partners) | |||||||
5.75% 10/1/36 (AMT) | $ | 450,000 | $ | 298,026 | |||
New York Energy Research & Development Authority | |||||||
Pollution Control Revenue (Central Hudson Gas) | |||||||
Series A 5.45% 8/1/27 (AMBAC) | 500,000 | 502,430 | |||||
Suffolk County Industrial Development Agency Revenue | |||||||
(Keyspan-Port Jefferson Energy Center) | |||||||
5.25% 6/1/27 (AMT) | 250,000 | 204,485 | |||||
1,004,941 | |||||||
Education Revenue Bonds – 15.75% | |||||||
Albany Industrial Development Agency Civic Facilities Revenue | |||||||
(Brighter Choice Charter School) Series A 5.00% 4/1/37 | 250,000 | 152,063 | |||||
Amherst Industrial Development Agency Civic Facilities | |||||||
Revenue (UBF Faculty Student Housing) Series A | |||||||
5.75% 8/1/30 (AMBAC) | 200,000 | 200,852 | |||||
Dutchess County Industrial Development Agency | |||||||
(Marist College) 5.00% 7/1/20 | 500,000 | 506,290 | |||||
Madison County Industrial Development Agency Civic | |||||||
Facility Revenue (Colgate University Project) Series A | |||||||
5.00% 7/1/39 (MBIA) | 400,000 | 383,708 | |||||
New York State Dormitory Authority Revenue | |||||||
(Columbia University) Series A 5.00% 7/1/23 | 500,000 | 519,834 | |||||
(Pratt Institute) 6.00% 7/1/20 (RADIAN) | 500,000 | 485,755 | |||||
Un-Refunded Series B 7.50% 5/15/11 | 125,000 | 138,618 | |||||
·Series B 5.25% 11/15/23 | 250,000 | 264,813 | |||||
New York State Dormitory Authority Revenue | |||||||
Non-State Supported Debt | |||||||
(New York University) Series A 5.25% 7/1/48 | 400,000 | 390,800 | |||||
(Teachers College) 5.50% 3/1/39 | 250,000 | 252,585 | |||||
D(University of Rochester) Series A-2 4.375% 7/1/20 | 250,000 | 235,540 | |||||
3,530,858 | |||||||
Electric Revenue Bonds – 3.52% | |||||||
Long Island Power Authority Electric System Revenue | |||||||
Series A 5.75% 4/1/39 | 350,000 | 361,424 | |||||
Series B 5.75% 4/1/33 | 250,000 | 258,495 | |||||
Puerto Rico Electric Power Authority Revenue Series WW | |||||||
5.00% 7/1/28 | 190,000 | 169,007 | |||||
788,926 |
37
Statements of net assets
Delaware Tax-Free New York Fund
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
Health Care Revenue Bonds – 7.06% | |||||||
East Rochester Housing Authority Revenue | |||||||
(Senior Living-Woodland Village Project) 5.50% 8/1/33 | $ | 200,000 | $ | 123,532 | |||
New York Dormitory Authority Revenue | |||||||
(Chapel Oaks) 5.45% 7/1/26 (LOC, Allied Irish Bank) | 450,000 | 451,016 | |||||
(Millard Fillmore Hospital) 5.375% 2/1/32 (AMBAC) (FHA) | 225,000 | 222,217 | |||||
(Winthrop South Nassau Hospital) Series B 5.50% 7/1/23 | 500,000 | 440,365 | |||||
New York Dormitory Authority Revenue | |||||||
Non-State Supported Debt | |||||||
(Orange Regional Medical Center) 6.125% 12/1/29 | 175,000 | 131,142 | |||||
(Memorial Sloan-Kettering) Series 1 5.00% 7/1/35 | 225,000 | 215,766 | |||||
1,584,038 | |||||||
Housing Revenue Bonds – 0.95% | |||||||
New York City Multifamily Housing Development Revenue | |||||||
Series G-1 4.875% 11/1/39 (AMT) | 250,000 | 213,845 | |||||
213,845 | |||||||
Lease Revenue Bonds – 4.64% | |||||||
Battery Park City Authority Revenue | |||||||
Series A 5.00% 11/1/26 | 250,000 | 254,255 | |||||
Nassau County Tobacco Settlement (Asset-Backed) | |||||||
Series A-3 5.125% 6/1/46 | 125,000 | 77,123 | |||||
Tobacco Settlement Financing Authority Revenue | |||||||
(Asset-Backed) Series B-1C | |||||||
5.50% 6/1/20 | 200,000 | 203,648 | |||||
5.50% 6/1/21 | 500,000 | 506,100 | |||||
1,041,126 | |||||||
Local General Obligation Bonds – 2.83% | |||||||
New York City | |||||||
Series D 5.00% 11/1/34 | 125,000 | 117,149 | |||||
Subordinated Series C-1 5.00% 10/1/19 | 500,000 | 518,175 | |||||
635,324 | |||||||
§Pre-Refunded Bonds – 19.84% | |||||||
Albany Parking Authority Revenue Series A | |||||||
5.625% 7/15/25-11 | 280,000 | 311,847 | |||||
Metropolitan Transportation Authority Revenue | |||||||
(Dedicated Tax) Series A 6.125% 4/1/17-10 (FGIC) | 1,000,000 | 1,059,889 | |||||
New York City Series J 5.25% 6/1/28-13 | 310,000 | 355,840 |
38
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
§Pre-Refunded Bonds (continued) | |||||||
New York Dormitory Authority Revenue | |||||||
(North Shore Long Island Jewish Group Project) | |||||||
5.50% 5/1/33-13 | $ | 500,000 | $ | 578,095 | |||
Series B 7.50% 5/15/11-09 | 130,000 | 136,500 | |||||
Puerto Rico Commonwealth Highway & Transportation | |||||||
Authority Revenue Series Y 5.50% 7/1/36-16 | 475,000 | 572,708 | |||||
Puerto Rico Commonwealth Series B 5.25% 7/1/32-16 | 155,000 | 184,292 | |||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series II 5.25% 7/1/31-12 | 500,000 | 565,595 | |||||
Series NN 5.125% 7/1/29-13 | 600,000 | 684,086 | |||||
4,448,852 | |||||||
Special Tax Revenue Bonds – 19.72% | |||||||
New York City Transitional Finance Authority Revenue | |||||||
(Building Aid Revenue Fiscal 2009) | |||||||
Series S-3 5.25% 1/15/39 | 250,000 | 242,293 | |||||
(Subordinated Future Tax Secured) | |||||||
Series B 5.00% 11/1/18 | 500,000 | 554,790 | |||||
New York City Trust for Cultural Resources Revenue | |||||||
(Museum of Modern Art) Series 1A 5.00% 4/1/31 | 250,000 | 247,355 | |||||
New York Dormitory Authority State Personal | |||||||
Income Tax Revenue | |||||||
Series A 5.00% 3/15/38 | 500,000 | 487,275 | |||||
Series C 5.00% 3/15/15 | 250,000 | 282,250 | |||||
New York Dormitory Authority Supported Debt Revenue | |||||||
(Consolidated Services Contract) 5.00% 7/1/17 (FSA) | 500,000 | 557,484 | |||||
New York Sales Tax Asset Receivables Series A | |||||||
5.25% 10/15/27 (AMBAC) | 500,000 | 517,945 | |||||
New York State Urban Development Revenue | |||||||
State Personal Income Tax | |||||||
Series A-1 5.00% 12/15/22 | 250,000 | 264,420 | |||||
Series B-1 5.00% 3/15/36 | 250,000 | 244,910 | |||||
Puerto Rico Commonwealth Infrastructure Financing | |||||||
Authority Revenue Series B 5.00% 7/1/15 | 250,000 | 239,490 | |||||
Puerto Rico Sales Tax Financing Revenue | |||||||
Series A 5.25% 8/1/57 | 325,000 | 271,411 | |||||
Schenectady Metroplex Development Authority Revenue | |||||||
Series A 5.375% 12/15/21 | 500,000 | 511,635 | |||||
4,421,258 |
39
Statements of net assets
Delaware Tax-Free New York Fund
Principal amount | Value | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds – 2.54% | |||||||
New York State Series A 5.00% 3/1/38 | $ | 500,000 | $ | 489,500 | |||
Puerto Rico Commonwealth Series B 5.25% 7/1/32 | 95,000 | 79,531 | |||||
569,031 | |||||||
Transportation Revenue Bonds – 13.55% | |||||||
Albany Parking Authority Revenue Series A | |||||||
5.625% 7/15/25 | 220,000 | 218,704 | |||||
Metropolitan Transportation Authority Revenue | |||||||
·Series A 5.00% 11/15/27 | 200,000 | 209,558 | |||||
Series C 6.50% 11/15/28 | 200,000 | 220,982 | |||||
Series F 5.00% 11/15/15 | 150,000 | 160,785 | |||||
New York City Industrial Development Agency Special | |||||||
Airport Facilities (JFK Airs Project) Series A | |||||||
5.50% 7/1/28 (AMT) | 500,000 | 331,165 | |||||
New York State Thruway Authority General Revenue Series H | |||||||
5.00% 1/1/14 (MBIA) | 500,000 | 548,305 | |||||
5.00% 1/1/15 (MBIA) | 250,000 | 276,330 | |||||
Onondaga County Industrial Development Authority | |||||||
Revenue (Subordinated Air Cargo Project) | |||||||
7.25% 1/1/32 (AMT) | 500,000 | 397,050 | |||||
Port Authority New York & New Jersey (Consolidated-One | |||||||
Hundred Fifty-Third) 5.00% 7/15/35 | 250,000 | 249,260 | |||||
Triborough Bridge & Tunnel Authority Revenue | |||||||
Series C 5.00% 11/15/24 | 200,000 | 207,676 | |||||
·Subordinated Series B-1 5.00% 11/15/25 | 200,000 | 219,214 | |||||
3,039,029 | |||||||
Water & Sewer Revenue Bonds – 2.11% | |||||||
New York City Municipal Finance Authority Water & | |||||||
Sewer System Revenue | |||||||
(Fiscal 2009) Series A 5.75% 6/15/40 | 200,000 | 213,562 | |||||
(Second General Resolution) Series FF-2 | |||||||
5.50% 6/15/40 | 250,000 | 258,828 | |||||
472,390 | |||||||
Total Municipal Bonds (cost $21,808,672) | 21,749,618 |
40
Principal amount | Value | ||||||||
Short-Term Investment – 2.23% | |||||||||
·Variable Rate Demand Note – 2.23% | |||||||||
New York City Industrial Development Agency Civic | |||||||||
Facility Revenue (New York Law School Project) | |||||||||
Series A 0.53% 7/1/36 | $ | 500,000 | $ | 500,000 | |||||
Total Short-Term Investment (cost $500,000) | 500,000 | ||||||||
Total Value of Securities – 99.22% | |||||||||
(cost $22,308,672) | 22,249,618 | ||||||||
Receivables and Other Assets | |||||||||
Net of Liabilities – 0.78% | 174,536 | ||||||||
Net Assets Applicable to 2,243,570 | |||||||||
Shares Outstanding – 100.00% | $ | 22,424,154 | |||||||
Net Asset Value – Delaware Tax-Free New York Fund | |||||||||
Class A ($17,688,616 / 1,768,888 Shares) | $10.00 | ||||||||
Net Asset Value – Delaware Tax-Free New York Fund | |||||||||
Class B ($1,169,818 / 117,253 Shares) | $ 9.98 | ||||||||
Net Asset Value – Delaware Tax-Free New York Fund | |||||||||
Class C ($3,565,720 / 357,429 Shares) | $ 9.98 | ||||||||
Components of Net Assets at February 28, 2009: | |||||||||
Shares of beneficial interest (unlimited authorization – no par) | $ | 22,704,433 | |||||||
Distributions in excess of net investment income | (647 | ) | |||||||
Accumulated net realized loss on investments | (220,578 | ) | |||||||
Net unrealized depreciation of investments | (59,054 | ) | |||||||
Total net assets | $ | 22,424,154 |
· | Variable rate security. The rate shown is the rate as of February 28, 2009. |
D | Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective. |
§ | Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.” |
41
Statements of net assets
Delaware Tax-Free New York Fund
Summary of abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
LOC — Letter of Credit
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance
Net Asset Value and Offering Price Per Share – | |||
Delaware Tax-Free New York Fund | |||
Net asset value Class A (A) | $ | 10.00 | |
Sales charge (4.50% of offering price) (B) | 0.47 | ||
Offering price | $ | 10.47 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. |
(B) | See the current prospectus for purchases of $100,000 or more. |
See accompanying notes
42
Statements of operations | |
Six Months Ended February 28, 2009 (Unaudited) |
Delaware Tax-Free | Delaware Tax-Free | Delaware Tax-Free | |||||||||||||
Arizona Fund | California Fund | Colorado Fund | |||||||||||||
Investment Income: | |||||||||||||||
Interest | $ | 3,062,690 | $ | 2,112,163 | $ | 6,158,132 | |||||||||
Expenses: | |||||||||||||||
Management fees | 313,134 | 222,286 | 630,632 | ||||||||||||
Distribution expenses – Class A | 138,136 | 77,223 | 271,526 | ||||||||||||
Distribution expenses – Class B | 39,750 | 28,426 | 17,166 | ||||||||||||
Distribution expenses – Class C | 36,173 | 67,824 | 45,832 | ||||||||||||
Dividend disbursing and transfer agent | |||||||||||||||
fees and expenses | 26,673 | 20,294 | 58,700 | ||||||||||||
Accounting and administration expenses | 26,451 | 17,301 | 45,864 | ||||||||||||
Legal fees | 13,939 | 8,271 | 17,955 | ||||||||||||
Registration fees | 9,171 | 7,298 | 4,274 | ||||||||||||
Audit and tax | 9,071 | 7,855 | 11,909 | ||||||||||||
Reports and statements to shareholders | 8,044 | 4,874 | 14,801 | ||||||||||||
Trustees’ fees | 4,112 | 2,654 | 7,489 | ||||||||||||
Pricing fees | 4,046 | 3,874 | 4,513 | ||||||||||||
Insurance fees | 2,028 | 1,346 | 3,437 | ||||||||||||
Custodian fees | 1,468 | 1,123 | 3,208 | ||||||||||||
Consulting fees | 852 | 556 | 1,544 | ||||||||||||
Trustees’ expenses | 379 | 243 | 684 | ||||||||||||
Dues and services | 258 | 190 | 635 | ||||||||||||
Taxes (other than taxes on income) | 251 | 154 | 509 | ||||||||||||
633,936 | 471,792 | 1,140,678 | |||||||||||||
Less fees waived | (104,657 | ) | (42,291 | ) | (37,885 | ) | |||||||||
Less expense paid indirectly | (58 | ) | — | — | |||||||||||
Total operating expenses | 529,221 | 429,501 | 1,102,793 | ||||||||||||
Net Investment Income | 2,533,469 | 1,682,662 | 5,055,339 | ||||||||||||
Net Realized and Unrealized Loss | |||||||||||||||
on Investments: | |||||||||||||||
Net realized loss on investments | (882,642 | ) | (379,243 | ) | (286,240 | ) | |||||||||
Net change in unrealized appreciation/ | |||||||||||||||
depreciation of investments | (3,426,863 | ) | (5,607,822 | ) | (11,921,658 | ) | |||||||||
Net Realized and Unrealized Loss | |||||||||||||||
on Investments | (4,309,505 | ) | (5,987,065 | ) | (12,207,898 | ) | |||||||||
Net Decrease in Net Assets | |||||||||||||||
Resulting from Operations | $ | (1,776,036 | ) | $ | (4,304,403 | ) | $ | (7,152,559 | ) |
See accompanying notes
44
Delaware Tax-Free | Delaware Tax-Free | |||||||||||
Idaho Fund | New York Fund | |||||||||||
Investment Income: | ||||||||||||
Interest | $ | 2,103,030 | $ | 488,946 | ||||||||
Expenses: | ||||||||||||
Management fees | 235,924 | 54,289 | ||||||||||
Distribution expenses – Class A | 87,851 | 19,709 | ||||||||||
Distribution expenses – Class B | 22,691 | 6,487 | ||||||||||
Distribution expenses – Class C | 55,007 | 13,098 | ||||||||||
Dividend disbursing and transfer agent | ||||||||||||
fees and expenses | 18,899 | 7,328 | ||||||||||
Accounting and administration expenses | 17,145 | 3,948 | ||||||||||
Legal fees | 8,250 | 536 | ||||||||||
Audit and tax | 7,705 | 2,026 | ||||||||||
Reports and statements to shareholders | 5,167 | 5,982 | ||||||||||
Pricing fees | 3,826 | 153 | ||||||||||
Trustees’ fees | 2,782 | 629 | ||||||||||
Registration fees | 2,532 | 4,797 | ||||||||||
Insurance fees | 1,479 | 2,787 | ||||||||||
Custodian fees | 806 | 293 | ||||||||||
Consulting fees | 388 | 120 | ||||||||||
Trustees’ expenses | 288 | 56 | ||||||||||
Dues and services | 224 | 39 | ||||||||||
Taxes (other than taxes on income) | — | 26 | ||||||||||
470,964 | 122,303 | |||||||||||
Less fees waived | (39,726 | ) | (23,557 | ) | ||||||||
Less expense paid indirectly | (11 | ) | (82 | ) | ||||||||
Total operating expenses | 431,227 | 98,664 | ||||||||||
Net Investment Income | 1,671,803 | 390,282 | ||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||
on Investments: | ||||||||||||
Net realized gain on investments | 17,280 | 4,181 | ||||||||||
Net change in unrealized appreciation/ | ||||||||||||
depreciation of investments | (1,253,968 | ) | (508,422 | ) | ||||||||
Net Realized and Unrealized Loss | ||||||||||||
on Investments | (1,236,688 | ) | (504,241 | ) | ||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||
Resulting from Operations | $ | 435,115 | $ | (113,959 | ) |
See accompanying notes
45
Statements of changes in net assets
Delaware Tax-Free Arizona Fund
Six Months | Year | |||||||
Ended | Ended | |||||||
2/28/09 | 8/31/08 | |||||||
(Unaudited) | ||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 2,533,469 | $ | 5,547,803 | ||||
Net realized loss on investments | (882,642 | ) | (122,728 | ) | ||||
Net change in unrealized | ||||||||
appreciation/depreciation of investments | (3,426,863 | ) | (1,640,599 | ) | ||||
Net increase (decrease) in net assets resulting | ||||||||
from operations | (1,776,036 | ) | 3,784,476 | |||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income: | ||||||||
Class A | (2,277,390 | ) | (4,918,990 | ) | ||||
Class B | (133,961 | ) | (359,177 | ) | ||||
Class C | (121,851 | ) | (269,611 | ) | ||||
(2,533,202 | ) | (5,547,778 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 2,670,006 | 14,751,087 | ||||||
Class B | 20,166 | 343 | ||||||
Class C | 484,559 | 2,945,439 | ||||||
Net asset value of shares issued upon reinvestment | ||||||||
of dividends and distributions: | ||||||||
Class A | 1,139,733 | 2,407,736 | ||||||
Class B | 69,256 | 184,069 | ||||||
Class C | 77,969 | 174,113 | ||||||
4,461,689 | 20,462,787 |
46
Six Months | Year | |||||||
Ended | Ended | |||||||
2/28/09 | 8/31/08 | |||||||
(Unaudited) | ||||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares repurchased: | ||||||||
Class A | $ | (13,428,049 | ) | $ | (19,237,873 | ) | ||
Class B | (1,808,614 | ) | (2,845,303 | ) | ||||
Class C | (2,177,769 | ) | (1,815,293 | ) | ||||
(17,414,432 | ) | (23,898,469 | ) | |||||
Decrease in net assets derived from | ||||||||
capital share transactions | (12,952,743 | ) | (3,435,682 | ) | ||||
Net Decrease in Net Assets | (17,261,981 | ) | (5,198,984 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 140,453,218 | 145,652,202 | ||||||
End of period1 | $ | 123,191,237 | $ | 140,453,218 | ||||
1Including undistributed net investment income | $ | 267 | $ | — |
See accompanying notes
47
Statements of changes in net assets
Delaware Tax-Free California Fund
Six Months | Year | |||||||
Ended | Ended | |||||||
2/28/09 | 8/31/08 | |||||||
(Unaudited) | ||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 1,682,662 | $ | 3,715,410 | ||||
Net realized loss on investments | (379,243 | ) | (461,721 | ) | ||||
Net change in unrealized | ||||||||
appreciation/depreciation of investments | (5,607,822 | ) | (1,438,134 | ) | ||||
Net increase (decrease) in net assets resulting | ||||||||
from operations | (4,304,403 | ) | 1,815,555 | |||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income: | ||||||||
Class A | (1,336,698 | ) | (2,975,104 | ) | ||||
Class B | (101,690 | ) | (272,986 | ) | ||||
Class C | (242,631 | ) | (467,320 | ) | ||||
(1,681,019 | ) | (3,715,410 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 5,982,601 | 13,897,604 | ||||||
Class B | 90,441 | 141,422 | ||||||
Class C | 1,360,743 | 4,752,482 | ||||||
Net asset value of shares issued upon reinvestment | ||||||||
of dividends and distributions: | ||||||||
Class A | 807,913 | 1,795,621 | ||||||
Class B | 69,809 | 191,370 | ||||||
Class C | 182,824 | 353,985 | ||||||
8,494,331 | 21,132,484 |
48
Six Months | Year | |||||||
Ended | Ended | |||||||
2/28/09 | 8/31/08 | |||||||
(Unaudited) | ||||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares repurchased: | ||||||||
Class A | $ | (8,792,733 | ) | $ | (23,597,793 | ) | ||
Class B | (969,303 | ) | (2,976,125 | ) | ||||
Class C | (2,579,137 | ) | (3,278,508 | ) | ||||
(12,341,173 | ) | (29,852,426 | ) | |||||
Decrease in net assets derived from | ||||||||
capital share transactions | (3,846,842 | ) | (8,719,942 | ) | ||||
Net Decrease in Net Assets | (9,832,264 | ) | (10,619,797 | ) | ||||
Net Assets: | ||||||||
Beginning of period | 88,753,994 | 99,373,791 | ||||||
End of period1 | $ | 78,921,730 | $ | 88,753,994 | ||||
1Including undistributed net investment income | $ | 2,943 | $ | 1,300 |
See accompanying notes
49
Statements of changes in net assets
Delaware Tax-Free Colorado Fund
Six Months | Year | ||||||
Ended | Ended | ||||||
2/28/09 | 8/31/08 | ||||||
(Unaudited) | |||||||
Increase (Decrease) in Net Assets from Operations: | |||||||
Net investment income | $ | 5,055,339 | $ | 10,555,283 | |||
Net realized loss on investments | (286,240 | ) | (620,603 | ) | |||
Net change in unrealized | |||||||
appreciation/depreciation of investments | (11,921,658 | ) | (1,307,241 | ) | |||
Net increase (decrease) in net assets resulting | |||||||
from operations | (7,152,559 | ) | 8,627,439 | ||||
Dividends and Distributions to Shareholders from: | |||||||
Net investment income: | |||||||
Class A | (4,833,338 | ) | (10,088,211 | ) | |||
Class B | (63,498 | ) | (155,100 | ) | |||
Class C | (169,520 | ) | (340,507 | ) | |||
(5,066,356 | ) | (10,583,818 | ) | ||||
Capital Share Transactions: | |||||||
Proceeds from shares sold: | |||||||
Class A | 7,308,154 | 10,216,326 | |||||
Class B | 1,085 | 19 | |||||
Class C | 857,896 | 1,027,663 | |||||
Net asset value of shares issued upon reinvestment | |||||||
of dividends and distributions: | |||||||
Class A | 3,098,322 | 6,399,592 | |||||
Class B | 28,004 | 72,523 | |||||
Class C | 116,569 | 231,599 | |||||
11,410,030 | 17,947,722 |
50
Six Months | Year | ||||||
Ended | Ended | ||||||
2/28/09 | 8/31/08 | ||||||
(Unaudited) | |||||||
Capital Share Transactions (continued): | |||||||
Cost of shares repurchased: | |||||||
Class A | $ | (14,551,214 | ) | $ | (26,823,353 | ) | |
Class B | (624,343 | ) | (1,411,740 | ) | |||
Class C | (738,738 | ) | (1,502,110 | ) | |||
(15,914,295 | ) | (29,737,203 | ) | ||||
Decrease in net assets derived from | |||||||
capital share transactions | (4,504,265 | ) | (11,789,481 | ) | |||
Net Decrease in Net Assets | (16,723,180 | ) | (13,745,860 | ) | |||
Net Assets: | |||||||
Beginning of period | 248,426,945 | 262,172,805 | |||||
End of period1 | $ | 231,703,765 | $ | 248,426,945 | |||
1Including undistributed net investment income | $ | 2,866 | $ | — |
See accompanying notes
51
Statements of changes in net assets
Delaware Tax-Free Idaho Fund
Six Months | Year | ||||||
Ended | Ended | ||||||
2/28/09 | 8/31/08 | ||||||
(Unaudited) | |||||||
Increase (Decrease) in Net Assets from Operations: | |||||||
Net investment income | $ | 1,671,803 | $ | 3,256,157 | |||
Net realized gain on investments | 17,280 | 75,661 | |||||
Net change in unrealized | |||||||
appreciation/depreciation of investments | (1,253,968 | ) | (89,235 | ) | |||
Net increase in net assets resulting | |||||||
from operations | 435,115 | 3,242,583 | |||||
Dividends and Distributions to Shareholders from: | |||||||
Net investment income: | |||||||
Class A | (1,416,131 | ) | (2,732,459 | ) | |||
Class B | (74,447 | ) | (170,938 | ) | |||
Class C | (180,386 | ) | (349,960 | ) | |||
(1,670,964 | ) | (3,253,357 | ) | ||||
Capital Share Transactions: | |||||||
Proceeds from shares sold: | |||||||
Class A | 6,782,307 | 8,896,373 | |||||
Class B | 11,946 | 12 | |||||
Class C | 1,352,696 | 1,462,472 | |||||
Net asset value of shares issued upon reinvestment | |||||||
of dividends and distributions: | |||||||
Class A | 923,122 | 1,765,961 | |||||
Class B | 54,496 | 115,322 | |||||
Class C | 114,189 | 215,873 | |||||
9,238,756 | 12,456,013 |
52
Six Months | Year | ||||||
Ended | Ended | ||||||
2/28/09 | 8/31/08 | ||||||
(Unaudited) | |||||||
Capital Share Transactions (continued): | |||||||
Cost of shares repurchased: | |||||||
Class A | $ | (4,535,232 | ) | $ | (8,346,549 | ) | |
Class B | (635,614 | ) | (1,000,259 | ) | |||
Class C | (837,421 | ) | (1,717,154 | ) | |||
(6,008,267 | ) | (11,063,962 | ) | ||||
Increase in net assets derived from | |||||||
capital share transactions | 3,230,489 | 1,392,051 | |||||
Net Increase in Net Assets | 1,994,640 | 1,381,277 | |||||
Net Assets: | |||||||
Beginning of period | 88,849,906 | 87,468,629 | |||||
End of period1 | $ | 90,844,546 | $ | 88,849,906 | |||
1Including distributions in excess of | |||||||
net investment income | $ | (11,699 | ) | $ | (11,301 | ) |
See accompanying notes
53
Statements of changes in net assets
Delaware Tax-Free New York Fund
Six Months | Year | ||||||
Ended | Ended | ||||||
2/28/09 | 8/31/08 | ||||||
(Unaudited) | |||||||
Increase (Decrease) in Net Assets from Operations: | |||||||
Net investment income | $ | 390,282 | $ | 718,580 | |||
Net realized gain (loss) on investments | 4,181 | (59,331 | ) | ||||
Net change in unrealized | |||||||
appreciation/depreciation of investments | (508,422 | ) | 64,192 | ||||
Net increase (decrease) in net assets resulting | |||||||
from operations | (113,959 | ) | 723,441 | ||||
Dividends and Distributions to Shareholders from: | |||||||
Net investment income: | |||||||
Class A | (324,449 | ) | (591,360 | ) | |||
Class B | (21,855 | ) | (58,984 | ) | |||
Class C | (43,973 | ) | (68,233 | ) | |||
(390,277 | ) | (718,577 | ) | ||||
Capital Share Transactions: | |||||||
Proceeds from shares sold: | |||||||
Class A | 4,545,079 | 1,725,009 | |||||
Class B | 4,280 | 15,697 | |||||
Class C | 1,916,775 | 773,501 | |||||
Net asset value of shares issued upon reinvestment | |||||||
of dividends and distributions: | |||||||
Class A | 184,890 | 340,675 | |||||
Class B | 13,379 | 34,201 | |||||
Class C | 21,021 | 26,265 | |||||
6,685,424 | 2,915,348 |
54
Six Months | Year | ||||||
Ended | Ended | ||||||
2/28/09 | 8/31/08 | ||||||
(Unaudited) | |||||||
Capital Share Transactions (continued): | |||||||
Cost of shares repurchased: | |||||||
Class A | $ | (1,956,393 | ) | $ | (1,537,264 | ) | |
Class B | (345,614 | ) | (674,159 | ) | |||
Class C | (392,534 | ) | (883,325 | ) | |||
(2,694,541 | ) | (3,094,748 | ) | ||||
Increase (decrease) in net assets derived from | |||||||
capital share transactions | 3,990,883 | (179,400 | ) | ||||
Net Increase (Decrease) in Net Assets | 3,486,647 | (174,536 | ) | ||||
Net Assets: | |||||||
Beginning of period | 18,937,507 | 19,112,043 | |||||
End of period1 | $ | 22,424,154 | $ | 18,937,507 | |||
1Including distributions in excess of | |||||||
net investment income | $ | (647 | ) | $ | (652 | ) |
See accompanying notes
55
Financial highlights
Delaware Tax-Free Arizona 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain on investments |
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 and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
56
Six Months Ended | Year Ended | |||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | |||||||||||||||
(Unaudited) | ||||||||||||||||||||
$10.930 | $11.070 | $11.350 | $11.560 | $11.410 | $11.160 | |||||||||||||||
0.214 | 0.444 | 0.465 | 0.467 | 0.468 | 0.469 | |||||||||||||||
(0.300 | ) | (0.140 | ) | (0.280 | ) | (0.210 | ) | 0.174 | 0.308 | |||||||||||
(0.086 | ) | 0.304 | 0.185 | 0.257 | 0.642 | 0.777 | ||||||||||||||
(0.214 | ) | (0.444 | ) | (0.465 | ) | (0.467 | ) | (0.468 | ) | (0.469 | ) | |||||||||
— | — | — | — | (0.024 | ) | (0.058 | ) | |||||||||||||
(0.214 | ) | (0.444 | ) | (0.465 | ) | (0.467 | ) | (0.492 | ) | (0.527 | ) | |||||||||
$10.630 | $10.930 | $11.070 | $11.350 | $11.560 | $11.410 | |||||||||||||||
(0.74% | ) | 2.78% | 1.63% | 2.31% | 5.74% | 7.09% | ||||||||||||||
$108,716 | $122,027 | $125,636 | $131,468 | $134,874 | $122,436 | |||||||||||||||
0.75% | 0.75% | 0.76% | 0.76% | 0.80% | 0.90% | |||||||||||||||
0.92% | 0.91% | 0.91% | 0.91% | 0.91% | 0.90% | |||||||||||||||
4.13% | 4.02% | 4.11% | 4.12% | 4.07% | 4.14% | |||||||||||||||
3.96% | 3.86% | 3.96% | 3.97% | 3.96% | 4.14% | |||||||||||||||
2% | 29% | 9% | 8% | 3% | 19% |
57
Financial highlights
Delaware Tax-Free Arizona Fund Class B
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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain on investments |
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 and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
58
Six Months Ended | Year Ended | |||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | |||||||||||||||
(Unaudited) | ||||||||||||||||||||
$10.940 | $11.070 | $11.360 | $11.570 | $11.420 | $11.170 | |||||||||||||||
0.175 | 0.361 | 0.380 | 0.382 | 0.382 | 0.384 | |||||||||||||||
(0.310 | ) | (0.130 | ) | (0.290 | ) | (0.210 | ) | 0.174 | 0.308 | |||||||||||
(0.135 | ) | 0.231 | 0.090 | 0.172 | 0.556 | 0.692 | ||||||||||||||
(0.175 | ) | (0.361 | ) | (0.380 | ) | (0.382 | ) | (0.382 | ) | (0.384 | ) | |||||||||
— | — | — | — | (0.024 | ) | (0.058 | ) | |||||||||||||
(0.175 | ) | (0.361 | ) | (0.380 | ) | (0.382 | ) | (0.406 | ) | (0.442 | ) | |||||||||
$10.630 | $10.940 | $11.070 | $11.360 | $11.570 | $11.420 | |||||||||||||||
(1.20% | ) | 2.10% | 0.78% | 1.54% | 4.95% | 6.28% | ||||||||||||||
$7,597 | $9,620 | $12,407 | $16,413 | $19,005 | $13,355 | |||||||||||||||
1.50% | 1.50% | 1.51% | 1.51% | 1.55% | 1.65% | |||||||||||||||
1.67% | 1.66% | 1.66% | 1.66% | 1.66% | 1.65% | |||||||||||||||
3.38% | 3.27% | 3.36% | 3.37% | 3.32% | 3.39% | |||||||||||||||
3.21% | 3.11% | 3.21% | 3.22% | 3.21% | 3.39% | |||||||||||||||
2% | 29% | 9% | 8% | 3% | 19% |
59
Financial highlights
Delaware Tax-Free Arizona 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain on investments |
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 and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
60
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.960 | $11.090 | $11.380 | $11.580 | $11.430 | $11.180 | ||||||||||||||
0.175 | 0.361 | 0.380 | 0.381 | 0.382 | 0.384 | ||||||||||||||
(0.310 | ) | (0.130 | ) | (0.290 | ) | (0.200 | ) | 0.174 | 0.308 | ||||||||||
(0.135 | ) | 0.231 | 0.090 | 0.181 | 0.556 | 0.692 | |||||||||||||
(0.175 | ) | (0.361 | ) | (0.380 | ) | (0.381 | ) | (0.382 | ) | (0.384 | ) | ||||||||
— | — | — | — | (0.024 | ) | (0.058 | ) | ||||||||||||
(0.175 | ) | (0.361 | ) | (0.380 | ) | (0.381 | ) | (0.406 | ) | (0.442 | ) | ||||||||
$10.650 | $10.960 | $11.090 | $11.380 | $11.580 | $11.430 | ||||||||||||||
(1.20% | ) | 2.09% | 0.77% | 1.63% | 4.94% | 6.27% | |||||||||||||
$6,878 | $8,806 | $7,609 | $8,117 | $8,591 | $6,651 | ||||||||||||||
1.50% | 1.50% | 1.51% | 1.51% | 1.55% | 1.65% | ||||||||||||||
1.67% | 1.66% | 1.66% | 1.66% | 1.66% | 1.65% | ||||||||||||||
3.38% | 3.27% | 3.36% | 3.37% | 3.32% | 3.39% | ||||||||||||||
3.21% | 3.11% | 3.21% | 3.22% | 3.21% | 3.39% | ||||||||||||||
2% | 29% | 9% | 8% | 3% | 19% |
61
Financial highlights
Delaware Tax-Free California 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
62
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.800 | $11.010 | $11.400 | $11.490 | $11.110 | $10.750 | ||||||||||||||
0.216 | 0.449 | 0.454 | 0.450 | 0.462 | 0.518 | ||||||||||||||
(0.710 | ) | (0.210 | ) | (0.390 | ) | (0.090 | ) | 0.380 | 0.360 | ||||||||||
(0.494 | ) | 0.239 | 0.064 | 0.360 | 0.842 | 0.878 | |||||||||||||
(0.216 | ) | (0.449 | ) | (0.454 | ) | (0.450 | ) | (0.462 | ) | (0.518 | ) | ||||||||
(0.216 | ) | (0.449 | ) | (0.454 | ) | (0.450 | ) | (0.462 | ) | (0.518 | ) | ||||||||
$10.090 | $10.800 | $11.010 | $11.400 | $11.490 | $11.110 | ||||||||||||||
(4.54% | ) | 2.21% | 0.51% | 3.24% | 7.72% | 8.34% | |||||||||||||
$60,647 | $67,174 | $76,537 | $75,995 | $60,744 | $24,797 | ||||||||||||||
0.88% | 0.88% | 0.89% | 0.88% | 0.84% | 0.50% | ||||||||||||||
0.98% | 0.97% | 0.97% | 0.97% | 1.06% | 0.96% | ||||||||||||||
4.33% | 4.11% | 3.98% | 3.97% | 4.03% | 4.72% | ||||||||||||||
4.23% | 4.02% | 3.90% | 3.88% | 3.81% | 4.26% | ||||||||||||||
20% | 34% | 21% | 14% | 11% | 48% |
63
Financial highlights
Delaware Tax-Free California Fund Class B
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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
64
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.840 | $11.060 | $11.440 | $11.530 | $11.160 | $10.790 | ||||||||||||||
0.178 | 0.367 | 0.368 | 0.365 | 0.377 | 0.436 | ||||||||||||||
(0.700 | ) | (0.220 | ) | (0.380 | ) | (0.090 | ) | 0.370 | 0.370 | ||||||||||
(0.522 | ) | 0.147 | (0.012 | ) | 0.275 | 0.747 | 0.806 | ||||||||||||
(0.178 | ) | (0.367 | ) | (0.368 | ) | (0.365 | ) | (0.377 | ) | (0.436 | ) | ||||||||
(0.178 | ) | (0.367 | ) | (0.368 | ) | (0.365 | ) | (0.377 | ) | (0.436 | ) | ||||||||
$10.140 | $10.840 | $11.060 | $11.440 | $11.530 | $11.160 | ||||||||||||||
(4.78% | ) | 1.34% | (0.15% | ) | 2.46% | 6.80% | 7.60% | ||||||||||||
$5,333 | $6,589 | $9,384 | $14,918 | $18,254 | $14,530 | ||||||||||||||
1.63% | 1.63% | 1.64% | 1.63% | 1.59% | 1.25% | ||||||||||||||
1.73% | 1.72% | 1.72% | 1.72% | 1.81% | 1.71% | ||||||||||||||
3.58% | 3.36% | 3.23% | 3.22% | 3.28% | 3.97% | ||||||||||||||
3.48% | 3.27% | 3.15% | 3.13% | 3.06% | 3.51% | ||||||||||||||
20% | 34% | 21% | 14% | 11% | 48% |
65
Financial highlights
Delaware Tax-Free California 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
66
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.810 | $11.030 | $11.420 | $11.500 | $11.130 | $10.760 | ||||||||||||||
0.178 | 0.367 | 0.368 | 0.365 | 0.377 | 0.436 | ||||||||||||||
(0.700 | ) | (0.220 | ) | (0.390 | ) | (0.080 | ) | 0.370 | 0.370 | ||||||||||
(0.522 | ) | 0.147 | (0.022 | ) | 0.285 | 0.747 | 0.806 | ||||||||||||
(0.178 | ) | (0.367 | ) | (0.368 | ) | (0.365 | ) | (0.377 | ) | (0.436 | ) | ||||||||
(0.178 | ) | (0.367 | ) | (0.368 | ) | (0.365 | ) | (0.377 | ) | (0.436 | ) | ||||||||
$10.110 | $10.810 | $11.030 | $11.420 | $11.500 | $11.130 | ||||||||||||||
(4.80% | ) | 1.35% | (0.24% | ) | 2.56% | 6.81% | 7.62% | ||||||||||||
$12,942 | $14,991 | $13,453 | $12,768 | $9,756 | $5,595 | ||||||||||||||
1.63% | 1.63% | 1.64% | 1.63% | 1.59% | 1.25% | ||||||||||||||
1.73% | 1.72% | 1.72% | 1.72% | 1.81% | 1.71% | ||||||||||||||
3.58% | 3.36% | 3.23% | 3.22% | 3.28% | 3.97% | ||||||||||||||
3.48% | 3.27% | 3.15% | 3.13% | 3.06% | 3.51% | ||||||||||||||
20% | 34% | 21% | 14% | 11% | 48% |
67
Financial highlights
Delaware Tax-Free Colorado 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
68
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.640 | $10.730 | $11.040 | $11.200 | $11.070 | $10.830 | ||||||||||||||
0.223 | 0.448 | 0.464 | 0.488 | 0.495 | 0.510 | ||||||||||||||
(0.520 | ) | (0.089 | ) | (0.310 | ) | (0.160 | ) | 0.130 | 0.240 | ||||||||||
(0.297 | ) | 0.359 | 0.154 | 0.328 | 0.625 | 0.750 | |||||||||||||
(0.223 | ) | (0.449 | ) | (0.464 | ) | (0.488 | ) | (0.495 | ) | (0.510 | ) | ||||||||
(0.223 | ) | (0.449 | ) | (0.464 | ) | (0.488 | ) | (0.495 | ) | (0.510 | ) | ||||||||
$10.120 | $10.640 | $10.730 | $11.040 | $11.200 | $11.070 | ||||||||||||||
(2.76% | ) | 3.38% | 1.38% | 3.03% | 5.78% | 7.04% | |||||||||||||
$218,944 | $234,630 | $246,695 | $258,773 | $270,149 | $276,534 | ||||||||||||||
0.92% | 0.93% | 0.94% | 0.93% | 0.94% | 0.95% | ||||||||||||||
0.95% | 0.95% | 0.96% | 0.94% | 0.94% | 0.95% | ||||||||||||||
4.44% | 4.16% | 4.22% | 4.43% | 4.46% | 4.63% | ||||||||||||||
4.41% | 4.14% | 4.20% | 4.42% | 4.46% | 4.63% | ||||||||||||||
14% | 15% | 12% | 8% | 8% | 13% |
69
Financial highlights
Delaware Tax-Free Colorado Fund Class B
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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
70
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.640 | $10.730 | $11.050 | $11.200 | $11.080 | $10.830 | ||||||||||||||
0.185 | 0.367 | 0.382 | 0.405 | 0.412 | 0.427 | ||||||||||||||
(0.510 | ) | (0.089 | ) | (0.320 | ) | (0.150 | ) | 0.120 | 0.250 | ||||||||||
(0.325 | ) | 0.278 | 0.062 | 0.255 | 0.532 | 0.677 | |||||||||||||
(0.185 | ) | (0.368 | ) | (0.382 | ) | (0.405 | ) | (0.412 | ) | (0.427 | ) | ||||||||
(0.185 | ) | (0.368 | ) | (0.382 | ) | (0.405 | ) | (0.412 | ) | (0.427 | ) | ||||||||
$10.130 | $10.640 | $10.730 | $11.050 | $11.200 | $11.080 | ||||||||||||||
(3.03% | ) | 2.60% | 0.53% | 2.35% | 4.89% | 6.34% | |||||||||||||
$3,173 | $3,961 | $5,326 | $8,221 | $10,370 | $12,411 | ||||||||||||||
1.67% | 1.68% | 1.69% | 1.68% | 1.69% | 1.70% | ||||||||||||||
1.70% | 1.70% | 1.71% | 1.69% | 1.69% | 1.70% | ||||||||||||||
3.69% | 3.41% | 3.47% | 3.68% | 3.71% | 3.88% | ||||||||||||||
3.66% | 3.39% | 3.45% | 3.67% | 3.71% | 3.88% | ||||||||||||||
14% | 15% | 12% | 8% | 8% | 13% |
71
Financial highlights
Delaware Tax-Free Colorado 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
72
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.660 | $10.750 | $11.070 | $11.220 | $11.090 | $10.850 | ||||||||||||||
0.185 | 0.367 | 0.382 | 0.405 | 0.413 | 0.427 | ||||||||||||||
(0.520 | ) | (0.089 | ) | (0.320 | ) | (0.150 | ) | 0.130 | 0.240 | ||||||||||
(0.335 | ) | 0.278 | 0.062 | 0.255 | 0.543 | 0.667 | |||||||||||||
(0.185 | ) | (0.368 | ) | (0.382 | ) | (0.405 | ) | (0.413 | ) | (0.427 | ) | ||||||||
(0.185 | ) | (0.368 | ) | (0.382 | ) | (0.405 | ) | (0.413 | ) | (0.427 | ) | ||||||||
$10.140 | $10.660 | $10.750 | $11.070 | $11.220 | $11.090 | ||||||||||||||
(3.12% | ) | 2.60% | 0.53% | 2.34% | 4.99% | 6.23% | |||||||||||||
$9,587 | $9,836 | $10,152 | $9,971 | $9,170 | $9,579 | ||||||||||||||
1.67% | 1.68% | 1.69% | 1.68% | 1.69% | 1.70% | ||||||||||||||
1.70% | 1.70% | 1.71% | 1.69% | 1.69% | 1.70% | ||||||||||||||
3.69% | 3.41% | 3.47% | 3.68% | 3.71% | 3.88% | ||||||||||||||
3.66% | 3.39% | 3.45% | 3.67% | 3.71% | 3.88% | ||||||||||||||
14% | 15% | 12% | 8% | 8% | 13% |
73
Financial highlights
Delaware Tax-Free Idaho 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
74
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$11.260 | $11.260 | $11.450 | $11.630 | $11.490 | $11.140 | ||||||||||||||
0.216 | 0.437 | 0.448 | 0.449 | 0.452 | 0.478 | ||||||||||||||
(0.170 | ) | — | (0.190 | ) | (0.180 | ) | 0.140 | 0.353 | |||||||||||
0.046 | 0.437 | 0.258 | 0.269 | 0.592 | 0.831 | ||||||||||||||
(0.216 | ) | (0.437 | ) | (0.448 | ) | (0.449 | ) | (0.452 | ) | (0.481 | ) | ||||||||
(0.216 | ) | (0.437 | ) | (0.448 | ) | (0.449 | ) | (0.452 | ) | (0.481 | ) | ||||||||
$11.090 | $11.260 | $11.260 | $11.450 | $11.630 | $11.490 | ||||||||||||||
0.47% | 3.93% | 2.27% | 2.40% | 5.25% | 7.58% | ||||||||||||||
$74,448 | $72,237 | $69,931 | $62,808 | $60,554 | $55,572 | ||||||||||||||
0.87% | 0.85% | 0.86% | 0.85% | 0.87% | 0.97% | ||||||||||||||
0.96% | 0.96% | 0.98% | 0.98% | 0.98% | 0.97% | ||||||||||||||
4.02% | 3.87% | 3.92% | 3.95% | 3.92% | 4.21% | ||||||||||||||
3.93% | 3.76% | 3.80% | 3.82% | 3.81% | 4.21% | ||||||||||||||
5% | 11% | 8% | 15% | 27% | 13% |
75
Financial highlights
Delaware Tax-Free Idaho Fund Class B
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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
76
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$11.240 | $11.240 | $11.430 | $11.610 | $11.480 | $11.130 | ||||||||||||||
0.176 | 0.353 | 0.363 | 0.364 | 0.366 | 0.393 | ||||||||||||||
(0.170 | ) | — | (0.190 | ) | (0.180 | ) | 0.130 | 0.353 | |||||||||||
0.006 | 0.353 | 0.173 | 0.184 | 0.496 | 0.746 | ||||||||||||||
(0.176 | ) | (0.353 | ) | (0.363 | ) | (0.364 | ) | (0.366 | ) | (0.396 | ) | ||||||||
(0.176 | ) | (0.353 | ) | (0.363 | ) | (0.364 | ) | (0.366 | ) | (0.396 | ) | ||||||||
$11.070 | $11.240 | $11.240 | $11.430 | $11.610 | $11.480 | ||||||||||||||
0.10% | 3.17% | 1.51% | 1.64% | 4.39% | 6.79% | ||||||||||||||
$4,456 | $5,123 | $6,003 | $7,892 | $10,911 | $13,044 | ||||||||||||||
1.62% | 1.60% | 1.61% | 1.60% | 1.62% | 1.72% | ||||||||||||||
1.71% | 1.71% | 1.73% | 1.73% | 1.73% | 1.72% | ||||||||||||||
3.27% | 3.12% | 3.17% | 3.20% | 3.17% | 3.46% | ||||||||||||||
3.18% | 3.01% | 3.05% | 3.07% | 3.06% | 3.46% | ||||||||||||||
5% | 11% | 8% | 15% | 27% | 13% |
77
Financial highlights
Delaware Tax-Free Idaho 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
78
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$11.250 | $11.250 | $11.440 | $11.630 | $11.490 | $11.130 | ||||||||||||||
0.176 | 0.352 | 0.363 | 0.364 | 0.366 | 0.393 | ||||||||||||||
(0.170 | ) | — | (0.190 | ) | (0.190 | ) | 0.140 | 0.362 | |||||||||||
0.006 | 0.352 | 0.173 | 0.174 | 0.506 | 0.755 | ||||||||||||||
(0.176 | ) | (0.352 | ) | (0.363 | ) | (0.364 | ) | (0.366 | ) | (0.395 | ) | ||||||||
(0.176 | ) | (0.352 | ) | (0.363 | ) | (0.364 | ) | (0.366 | ) | (0.395 | ) | ||||||||
$11.080 | $11.250 | $11.250 | $11.440 | $11.630 | $11.490 | ||||||||||||||
0.10% | 3.16% | 1.51% | 1.56% | 4.47% | 6.87% | ||||||||||||||
$11,941 | $11,490 | $11,535 | $13,430 | $15,678 | $15,041 | ||||||||||||||
1.62% | 1.60% | 1.61% | 1.60% | 1.62% | 1.72% | ||||||||||||||
1.71% | 1.71% | 1.73% | 1.73% | 1.73% | 1.72% | ||||||||||||||
3.27% | 3.12% | 3.17% | 3.20% | 3.17% | 3.46% | ||||||||||||||
3.18% | 3.01% | 3.05% | 3.07% | 3.06% | 3.46% | ||||||||||||||
5% | 11% | 8% | 15% | 27% | 13% |
79
Financial highlights
Delaware Tax-Free New York 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
80
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.300 | $10.300 | $10.550 | $10.700 | $10.470 | $10.220 | ||||||||||||||
0.200 | 0.411 | 0.435 | 0.449 | 0.453 | 0.479 | ||||||||||||||
(0.300 | ) | — | (0.250 | ) | (0.150 | ) | 0.230 | 0.250 | |||||||||||
(0.100 | ) | 0.411 | 0.185 | 0.299 | 0.683 | 0.729 | |||||||||||||
(0.200 | ) | (0.411 | ) | (0.435 | ) | (0.449 | ) | (0.453 | ) | (0.479 | ) | ||||||||
(0.200 | ) | (0.411 | ) | (0.435 | ) | (0.449 | ) | (0.453 | ) | (0.479 | ) | ||||||||
$10.000 | $10.300 | $10.300 | $10.550 | $10.700 | $10.470 | ||||||||||||||
(0.92% | ) | 4.04% | 1.75% | 2.90% | 6.65% | 7.26% | |||||||||||||
$17,688 | $15,340 | $14,817 | $13,519 | $13,153 | $11,523 | ||||||||||||||
0.85% | 0.85% | 0.79% | 0.65% | 0.66% | 0.50% | ||||||||||||||
1.09% | 1.09% | 1.10% | 1.09% | 1.12% | 1.02% | ||||||||||||||
4.09% | 3.97% | 4.13% | 4.28% | 4.29% | 4.60% | ||||||||||||||
3.85% | 3.73% | 3.82% | 3.84% | 3.83% | 4.08% | ||||||||||||||
12% | 28% | 14% | 20% | 13% | 26% |
81
Financial highlights
Delaware Tax-Free New York Fund Class B
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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
82
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.270 | $10.280 | $10.530 | $10.670 | $10.450 | $10.200 | ||||||||||||||
0.164 | 0.333 | 0.357 | 0.370 | 0.374 | 0.401 | ||||||||||||||
(0.290 | ) | (0.010 | ) | (0.250 | ) | (0.140 | ) | 0.220 | 0.250 | ||||||||||
(0.126 | ) | 0.323 | 0.107 | 0.230 | 0.594 | 0.651 | |||||||||||||
(0.164 | ) | (0.333 | ) | (0.357 | ) | (0.370 | ) | (0.374 | ) | (0.401 | ) | ||||||||
(0.164 | ) | (0.333 | ) | (0.357 | ) | (0.370 | ) | (0.374 | ) | (0.401 | ) | ||||||||
$9.980 | $10.270 | $10.280 | $10.530 | $10.670 | $10.450 | ||||||||||||||
(1.19% | ) | 3.17% | 0.99% | 2.23% | 5.77% | 6.47% | |||||||||||||
$1,170 | $1,549 | $2,164 | $2,858 | $3,023 | $2,858 | ||||||||||||||
1.60% | 1.60% | 1.54% | 1.40% | 1.41% | 1.25% | ||||||||||||||
1.84% | 1.84% | 1.85% | 1.84% | 1.87% | 1.77% | ||||||||||||||
3.34% | 3.22% | 3.38% | 3.53% | 3.54% | 3.85% | ||||||||||||||
3.10% | 2.98% | 3.07% | 3.09% | 3.08% | 3.33% | ||||||||||||||
12% | 28% | 14% | 20% | 13% | 26% |
83
Financial highlights
Delaware Tax-Free New York 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 income |
Net realized and unrealized gain (loss) on investments |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets |
prior to fees waived and expense paid indirectly |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets |
prior to fees waived and expense paid indirectly |
Portfolio turnover |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
84
Six Months Ended | Year Ended | ||||||||||||||||||
2/28/091 | 8/31/08 | 8/31/07 | 8/31/06 | 8/31/05 | 8/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
$10.270 | $10.280 | $10.530 | $10.670 | $10.450 | $10.200 | ||||||||||||||
0.164 | 0.333 | 0.357 | 0.370 | 0.376 | 0.401 | ||||||||||||||
(0.290 | ) | (0.010 | ) | (0.250 | ) | (0.140 | ) | 0.220 | 0.250 | ||||||||||
(0.126 | ) | 0.323 | 0.107 | 0.230 | 0.596 | 0.651 | |||||||||||||
(0.164 | ) | (0.333 | ) | (0.357 | ) | (0.370 | ) | (0.376 | ) | (0.401 | ) | ||||||||
(0.164 | ) | (0.333 | ) | (0.357 | ) | (0.370 | ) | (0.376 | ) | (0.401 | ) | ||||||||
$9.980 | $10.270 | $10.280 | $10.530 | $10.670 | $10.450 | ||||||||||||||
(1.19% | ) | 3.17% | 0.99% | 2.23% | 5.80% | 6.47% | |||||||||||||
$3,566 | $2,049 | $2,131 | $2,068 | $886 | $2,329 | ||||||||||||||
1.60% | 1.60% | 1.54% | 1.40% | 1.41% | 1.25% | ||||||||||||||
1.84% | 1.84% | 1.85% | 1.84% | 1.87% | 1.77% | ||||||||||||||
3.34% | 3.22% | 3.38% | 3.53% | 3.54% | 3.85% | ||||||||||||||
3.10% | 2.98% | 3.07% | 3.09% | 3.08% | 3.33% | ||||||||||||||
12% | 28% | 14% | 20% | 13% | 26% |
85
Notes to financial statements | |
Delaware multi-state funds | February 28, 2009 (Unaudited) |
Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund. Voyageur Mutual Funds II is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Colorado Fund. Voyageur Insured Funds is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Arizona Fund. Voyageur Mutual Funds, Voyageur Mutual Funds II, and Voyageur Insured Funds are individually referred to as a “Trust” and collectively as the “Trusts.” These financial statements and related notes pertain to Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund (each, a Fund or, collectively, the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first 12 months.
The investment objective of the Funds is to seek as high a level of current income exempt from federal income tax and personal income tax in their respective states, as is consistent with preservation of capital.
1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by the Funds.
Security Valuation — Long-term debt securities are valued by an independent pricing service or broker. 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. Open-end investment companies are valued at their published net asset value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board, and collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. The Funds may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before each Fund values its securities at 4:00 p.m. Eastern Time. The earlier close of these
86
foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading or news events, may have occurred in the interim. To account for this, the Funds may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).
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. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ 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. The Funds did not record any tax benefit or expense in the current period.
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 U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of 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.
Other — Expenses directly attributable to the Funds are charged directly to the Funds. Other expenses common to various funds within the Delaware Investments® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. Each Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually.
The Funds receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. The expense paid under this arrangement is included in custodian fees on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.”
87
Notes to financial statements
Delaware multi-state funds
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 | Delaware | Delaware | Delaware | Delaware | ||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | ||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | ||||||||||
On the first $500 million | 0.500 | % | 0.550 | % | 0.550 | % | 0.550 | % | 0.550 | % | ||||
On the next $500 million | 0.475 | % | 0.500 | % | 0.500 | % | 0.500 | % | 0.500 | % | ||||
On the next $1.5 billion | 0.450 | % | 0.450 | % | 0.450 | % | 0.450 | % | 0.450 | % | ||||
In excess of $2.5 billion | 0.425 | % | 0.425 | % | 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 total annual operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, brokerage fees, certain insurance costs, and non-routine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations (collectively, “non-routine expenses”)) 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 include such additional costs and expenses, as may be agreed upon from time to time by each Fund’s Board and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Funds.
Delaware | Delaware | Delaware | Delaware | Delaware | ||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | ||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | ||||||||||
Effective January 1, 2009, | ||||||||||||||
operating expense | ||||||||||||||
limitation as a | ||||||||||||||
percentage of average | ||||||||||||||
daily net assets | ||||||||||||||
(per annum) | 0.50% | 0.63% | 0.64% | 0.65% | 0.60% | |||||||||
Expiration date | 12/31/09 | 12/31/09 | 12/31/09 | 12/31/09 | 12/31/09 | |||||||||
Through December 31, 2008, | ||||||||||||||
operating expense | ||||||||||||||
limitation as a | ||||||||||||||
percentage of average | ||||||||||||||
daily net assets | ||||||||||||||
(per annum) | 0.50% | 0.63% | 0.68% | 0.60% | 0.60% | |||||||||
Expiration date | 12/31/08 | 12/31/08 | 12/31/08 | 12/31/08 | 12/31/08 |
88
Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, each Fund pays DSC fees based on the aggregate daily net assets of the Delaware Investments® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to 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. For the six months ended February 28, 2009, each Fund was charged for these services as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||
$3,131 | $2,106 | $5,733 | $2,145 | $494 |
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.
At February 28, 2009, each Fund had liabilities payable to affiliates as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||||||||||||
Investment management | |||||||||||||||||||
fee payable to DMC | $33,081 | $27,890 | $89,717 | $34,306 | $5,689 | ||||||||||||||
Dividend disbursing, | |||||||||||||||||||
transfer agent and fund | |||||||||||||||||||
accounting oversight | |||||||||||||||||||
fees and other expenses | |||||||||||||||||||
payable to DSC | 4,847 | 3,588 | 10,584 | 3,540 | 1,404 | ||||||||||||||
Distribution fees | |||||||||||||||||||
payable to DDLP | 32,336 | 26,034 | 52,004 | 26,726 | 7,010 | ||||||||||||||
Other expenses payable to | |||||||||||||||||||
DMC and affiliates* | 11,885 | 7,383 | 21,821 | 8,208 | 3,664 |
*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.
89
Notes to financial statements
Delaware multi-state funds
2. | Investment Management, Administration Agreements and Other Transactions with Affiliates (continued) |
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 each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2009, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||
$4,828 | $3,122 | $8,973 | $3,392 | $796 |
For the six months ended February 28, 2009, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||
$6,902 | $5,678 | $6,928 | $15,937 | $6,127 |
For the six months ended February 28, 2009, DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B and Class C shares, and 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 | Delaware | Delaware | Delaware | Delaware | ||||||||||||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | ||||||||||||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | ||||||||||||||||||||
Class A | $ | 994 | $ | — | $ | — | $ | — | $ | 305 | ||||||||||||||
Class B | 683 | 858 | 2,858 | 952 | 430 | |||||||||||||||||||
Class C | 8,988 | 5,186 | 28 | 177 | — |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by each Fund.
3. Investments
For the six months ended February 28, 2009, the Funds made purchases and sales of investment securities other than short-term investments as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||
Purchases | $ 1,345,869 | $ 8,025,857 | $ 15,720,049 | $ 7,556,190 | $ 5,549,076 | ||||
Sales | 13,424,345 | 15,849,739 | 18,042,609 | 2,073,750 | 1,179,780 |
90
At February 28, 2009, 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 28, 2009, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | ||||||||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | ||||||||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | ||||||||||||||||
Cost of | ||||||||||||||||||||
investments | $ | 123,801,847 | $ | 84,159,306 | $ | 234,908,491 | $ | 91,000,223 | $ | 22,308,672 | ||||||||||
Aggregate | ||||||||||||||||||||
unrealized | ||||||||||||||||||||
appreciation | $ | 4,143,429 | $ | 1,611,449 | $ | 10,763,835 | $ | 2,925,424 | $ | 910,523 | ||||||||||
Aggregate | ||||||||||||||||||||
unrealized | ||||||||||||||||||||
depreciation | (5,894,877 | ) | (7,641,589 | ) | (17,181,530 | ) | (3,187,887 | ) | (969,577 | ) | ||||||||||
Net unrealized | ||||||||||||||||||||
depreciation | $ | (1,751,448 | ) | $ | (6,030,140 | ) | $ | (6,417,695 | ) | $ | (262,463 | ) | $ | (59,054 | ) |
Effective September 1, 2008, the Funds adopted Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157). FAS 157 defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three level hierarchy for fair value measurements 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 developed 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-tier hierarchy of inputs is summarized below.
Level 1 – inputs are quoted prices in active markets
Level 2 – inputs are observable, directly or indirectly
Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity
91
Notes to financial statements
Delaware multi-state funds
3. Investments (continued)
The following table summarizes the valuation of the Funds’ investments by the FAS 157 fair value hierarchy levels as of February 28, 2009:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||||||||
Level 1 | $ | 114,789 | $ | 1,144,744 | $ | 340,264 | $ | 1,808,356 | $ | — | |||||
Level 2 | 121,935,610 | 76,984,422 | 228,150,532 | 88,929,404 | 22,249,618 | ||||||||||
Level 3 | — | — | — | — | — | ||||||||||
Total | $ | 122,050,399 | $ | 78,129,166 | $ | 228,490,796 | $ | 90,737,760 | $ | 22,249,618 |
There were no Level 3 securities at the beginning or end of the period.
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, 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 six months ended February 28, 2009 and the year ended August 31, 2008 was as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||||||||
Six months ended 2/28/09* | |||||||||||||||
Tax-exempt income | $ | 2,533,202 | $ | 1,681,019 | $ | 5,053,847 | $ | 1,670,964 | $ | 390,277 | |||||
Ordinary income | — | — | 12,509 | — | — | ||||||||||
Total | $ | 2,533,202 | $ | 1,681,019 | $ | 5,066,356 | $ | 1,670,964 | $ | 390,277 | |||||
Year ended 8/31/08 | |||||||||||||||
Tax-exempt income | $ | 5,547,778 | $ | 3,715,410 | $ | 10,556,654 | $ | 3,253,357 | $ | 718,577 | |||||
Ordinary income | — | — | 27,164 | — | — | ||||||||||
Total | $ | 5,547,778 | $ | 3,715,410 | $ | 10,583,818 | $ | 3,253,357 | $ | 718,577 |
*Tax information for the period ended February 28, 2009 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.
92
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 28, 2009, the estimated components of net assets on a tax basis were as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | |||||||||||||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||||||||||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||||||||||||
Shares of | |||||||||||||||||||
beneficial | |||||||||||||||||||
interest | $ | 127,901,846 | $ | 86,657,165 | $ | 246,899,640 | $ | 91,441,146 | $ | 22,704,433 | |||||||||
Distributions | |||||||||||||||||||
payable | (80,509 | ) | (54,699 | ) | (170,360 | ) | (56,064 | ) | (14,509 | ) | |||||||||
Undistributed | |||||||||||||||||||
tax-exempt | |||||||||||||||||||
income | 80,776 | 57,642 | 173,226 | 44,365 | 13,862 | ||||||||||||||
Realized gains | |||||||||||||||||||
(losses) 9/1/08 – | |||||||||||||||||||
2/28/09 | (190,453 | ) | (558,577 | ) | (802,603 | ) | 2,660 | (31,321 | ) | ||||||||||
Post-October | |||||||||||||||||||
losses | (1,008,831 | ) | (259,726 | ) | (57,112 | ) | — | (8,900 | ) | ||||||||||
Capital loss | |||||||||||||||||||
carryforwards as | |||||||||||||||||||
of 8/31/08 | (1,760,144 | ) | (889,935 | ) | (7,921,331 | ) | (325,098 | ) | (180,357 | ) | |||||||||
Unrealized | |||||||||||||||||||
depreciation of | |||||||||||||||||||
investments | (1,751,448 | ) | (6,030,140 | ) | (6,417,695 | ) | (262,463 | ) | (59,054 | ) | |||||||||
Net assets | $ | 123,191,237 | $ | 78,921,730 | $ | 231,703,765 | $ | 90,844,546 | $ | 22,424,154 |
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales and tax treatment of market discount and premium on debt instruments.
Post-October losses represent losses realized on investment transactions from November 1, 2008 through February 28, 2009 that, in accordance with federal income tax regulations, each Fund has elected to defer and treat as having arisen in the following year.
93
Notes to financial statements
Delaware multi-state funds
5. Components of Net Assets on a Tax Basis (continued)
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 28, 2009, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.
Delaware | Delaware | ||||||||
Tax-Free | Tax-Free | ||||||||
Colorado Fund | Idaho Fund | ||||||||
Undistributed (distributions in excess of) | |||||||||
net investment income | $ | 13,883 | $ | (1,237 | ) | ||||
Accumulated net realized | |||||||||
gain (loss) | (13,883 | ) | 1,237 |
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at August 31, 2008 will expire as follows:
Delaware | Delaware | Delaware | Delaware | Delaware | ||||||||||||||||
Year of | Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||||||||||||
Expiration | Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||||||||||||
2009 | $ | — | $ | 662,241 | $ | 1,044,895 | $ | 77,838 | $ | 165,428 | ||||||||||
2010 | — | — | — | 166,949 | — | |||||||||||||||
2011 | 78,759 | 6,039 | — | — | — | |||||||||||||||
2012 | 1,681,385 | — | 4,571,043 | — | — | |||||||||||||||
2013 | — | — | 57,695 | — | — | |||||||||||||||
2014 | — | — | 2,203,520 | 23,435 | — | |||||||||||||||
2015 | — | — | — | 56,876 | — | |||||||||||||||
2016 | — | 221,655 | 44,178 | — | 14,929 | |||||||||||||||
Total | $ | 1,760,144 | $ | 889,935 | $ | 7,921,331 | $ | 325,098 | $ | 180,357 |
For the six months ended February 28, 2009, the Funds had capital gains (losses) which may reduce (increase) capital loss carryforwards.
Delaware | Delaware | Delaware | Delaware | Delaware | |||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | |||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | |||||
$(190,453) | $(558,577) | $(802,603) | $2,660 | $(31,321) |
94
6. Capital Shares
Transactions in capital shares were as follows:
Delaware Tax-Free | Delaware Tax-Free | Delaware Tax-Free | ||||||||||||||||
Arizona Fund | California Fund | Colorado Fund | ||||||||||||||||
Six Months | Year | Six Months | Year | Six Months | Year | |||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||
2/28/09 | 8/30/08 | 2/28/09 | 8/30/08 | 2/28/09 | 8/30/08 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 256,211 | 1,334,775 | 597,013 | 1,269,777 | 722,775 | 948,236 | ||||||||||||
Class B | 1,942 | 31 | 8,984 | 12,972 | 107 | 1 | ||||||||||||
Class C | 45,692 | 266,518 | 135,140 | 433,780 | 84,569 | 95,653 | ||||||||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||
Class A | 109,117 | 217,919 | 80,657 | 164,369 | 307,378 | 594,257 | ||||||||||||
Class B | 6,625 | 16,633 | 6,938 | 17,433 | 2,775 | 6,724 | ||||||||||||
Class C | 7,440 | 15,736 | 18,217 | 32,379 | 11,539 | 21,454 | ||||||||||||
427,027 | 1,851,612 | 846,949 | 1,930,710 | 1,129,143 | 1,666,325 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (1,300,805 | ) | (1,740,104 | ) | (891,097 | ) | (2,161,501 | ) | (1,451,405 | ) | (2,487,354 | ) | ||||||
Class B | (173,825 | ) | (257,420 | ) | (97,629 | ) | (271,127 | ) | (61,601 | ) | (130,940 | ) | ||||||
Class C | (211,246 | ) | (164,512 | ) | (259,480 | ) | (299,668 | ) | (73,471 | ) | (139,008 | ) | ||||||
(1,685,876 | ) | (2,162,036 | ) | (1,248,206 | ) | (2,732,296 | ) | (1,586,477 | ) | (2,757,302 | ) | |||||||
Net decrease | (1,258,849 | ) | (310,424 | ) | (401,257 | ) | (801,586 | ) | (457,334 | ) | (1,090,977 | ) | ||||||
Delaware Tax-Free | Delaware Tax-Free | |||||||||||||||||
Idaho Fund | New York Fund | |||||||||||||||||
Six Months | Year | Six Months | Year | |||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2/28/09 | 8/30/08 | 2/28/09 | 8/30/08 | |||||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 627,030 | 787,130 | 460,307 | 166,604 | ||||||||||||||
Class B | 1,123 | 1 | 440 | 1,496 | ||||||||||||||
Class C | 123,145 | 128,677 | 197,268 | 74,906 | ||||||||||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||
Class A | 85,341 | 155,988 | 18,788 | 32,892 | ||||||||||||||
Class B | 5,049 | 10,201 | 1,363 | 3,309 | ||||||||||||||
Class C | 10,573 | 19,082 | 2,138 | 2,539 | ||||||||||||||
852,261 | 1,101,079 | 680,304 | 281,746 | |||||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (414,390 | ) | (736,838 | ) | (199,771 | ) | (148,374 | ) | ||||||||||
Class B | (59,477 | ) | (88,298 | ) | (35,344 | ) | (64,544 | ) | ||||||||||
Class C | (77,321 | ) | (151,455 | ) | (41,395 | ) | (85,398 | ) | ||||||||||
(551,188 | ) | (976,591 | ) | (276,510 | ) | (298,316 | ) | |||||||||||
Net increase | ||||||||||||||||||
(decrease) | 301,073 | 124,488 | 403,794 | (16,570 | ) |
95
Notes to financial statements
Delaware multi-state funds
6. Capital Shares (continued)
For the six months ended February 28, 2009 and the year ended August 31, 2008, 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 page 95 and the statements of changes in net assets.
Six Months Ended | Year Ended | |||||||||||||
2/28/09 | 8/31/08 | |||||||||||||
Class B | Class A | Class B | Class A | |||||||||||
Shares | Shares | Value | Shares | Shares | Value | |||||||||
Delaware Tax-Free | ||||||||||||||
Arizona Fund | 43,097 | 43,097 | $ | 445,201 | 29,536 | 29,541 | $ | 328,168 | ||||||
Delaware Tax-Free | ||||||||||||||
California Fund | 52,920 | 53,139 | 515,990 | 79,561 | 79,848 | 881,603 | ||||||||
Delaware Tax-Free | ||||||||||||||
Colorado Fund | 10,206 | 10,206 | 99,945 | 88,870 | 88,933 | 958,664 | ||||||||
Delaware Tax-Free | ||||||||||||||
Idaho Fund | 23,989 | 23,943 | 256,873 | 43,828 | 43,749 | 496,288 | ||||||||
Delaware Tax-Free | ||||||||||||||
New York Fund | 14,684 | 14,653 | 140,684 | 14,375 | 14,339 | 148,612 |
7. Line of Credit
Each Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), was a participant in a $225,000,000 revolving line of credit with The Bank of New York Mellon (BNY Mellon) 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, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. The agreement expired on November 18, 2008.
Effective November 18, 2008, the Funds, along with the other Participants, entered into an amendment to the agreement with BNY Mellon for a $35,000,000 revolving line of credit. The agreement, as amended, is to be used as described above and operates in substantially the same manner as the original agreement. The agreement, as amended, expires on November 17, 2009. The Funds had no amounts outstanding at any time during the period ended February 28, 2009.
96
8. Credit and Market Risk
The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, 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 assurance 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 the Fund. At February 28, 2009, the percentage of each Fund’s net assets insured by bond insurers are listed below and these securities have been identified in the statements of net assets.
Delaware | Delaware | Delaware | Delaware | Delaware | ||||
Tax-Free | Tax-Free | Tax-Free | Tax-Free | Tax-Free | ||||
Arizona Fund | California Fund | Colorado Fund | Idaho Fund | New York Fund | ||||
59.06% | 38.73% | 45.25% | 43.31% | 21.20% |
The Funds 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 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.
97
Notes to financial statements
Delaware multi-state funds
8. Credit and Market Risk (continued)
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 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. 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. As of February 28, 2009, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.
9. 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.
98
About the organization
This semiannual report is for the information of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund and the Delaware Investments® Fund profile 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 | Ann R. Leven |
Chairman, President, and | Consultant |
Chief Executive Officer | ARL Associates |
Delaware Investments Family of Funds | New York, NY |
Philadelphia, PA | |
Thomas F. Madison | |
Thomas L. Bennett | President and Chief Executive Officer |
Private Investor | MLM Partners, Inc. |
Rosemont, PA | Minneapolis, MN |
John A. Fry | Janet L. Yeomans |
President | Vice President and Treasurer |
Franklin & Marshall College | 3M Corporation |
Lancaster, PA | St. Paul, MN |
Anthony D. Knerr | J. Richard Zecher |
Founder and Managing Director | Founder |
Anthony Knerr & Associates | Investor Analytics |
New York, NY | Scottsdale, AZ |
Lucinda S. Landreth | |
Former Chief Investment Officer | |
Assurant, Inc. | |
Philadelphia, PA |
99
Affiliated officers | Contact information |
David F. Connor | Investment manager |
Vice President, Deputy General Counsel, and | Delaware Management Company, a series of |
Secretary | Delaware Management Business Trust |
Delaware Investments® Family of Funds | Philadelphia, PA |
Philadelphia, PA | |
National distributor | |
Daniel V. Geatens | Delaware Distributors, L.P. |
Vice President and Treasurer | Philadelphia, PA |
Delaware Investments Family of Funds | |
Philadelphia, PA | Shareholder servicing, dividend disbursing, |
and transfer agent | |
David P. O’Connor | Delaware Service Company, Inc. |
Senior Vice President, General Counsel, | 2005 Market Street |
and Chief Legal Officer | Philadelphia, PA 19103-7094 |
Delaware Investments Family of Funds | |
Philadelphia, PA | For shareholders |
800 523-1918 | |
Richard Salus | |
Senior Vice President and | For securities dealers and financial |
Chief Financial Officer | institutions representatives only |
Delaware Investments Family of Funds | 800 362-7500 |
Philadelphia, PA | |
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.
100
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 INSURED FUNDS
PATRICK P. COYNE | |
By: | Patrick P. Coyne |
Title: | Chief Executive Officer |
Date: | May 4, 2009 |
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 4, 2009 |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | May 4, 2009 |