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: | 811-07742 | |
Exact name of registrant as specified in charter: | Voyageur Mutual 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, 2020 |
Item 1. Reports to Stockholders
Table of Contents
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Semiannual report
Fixed income mutual funds
DelawareTax-Free Minnesota Fund
DelawareTax-Free Minnesota Intermediate Fund
Delaware Minnesota High-Yield Municipal Bond Fund
February 29, 2020
Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up at delawarefunds.com/edelivery. If you own these shares through a financial intermediary, you may contact your financial intermediary.
You may elect to receive paper copies of all future shareholder reports free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 800523-1918. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the Delaware Funds® by Macquarie or your financial intermediary.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawarefunds.com/edelivery.
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Table of Contents
Experience Delaware Funds®by Macquarie
Macquarie Investment Management (MIM) is a global asset manager with offices in the United States, Europe, Asia, and Australia. As active managers we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for DelawareTax-Free Minnesota Fund, DelawareTax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Manage your account online
• | Check your account balance and transactions |
• | View statements and tax forms |
• | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. MIM is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A.
The Funds are distributed byDelaware Distributors, L.P.
(DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Funds are governed by US laws and regulations.
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Unless otherwise noted, views expressed herein are current as of Feb. 29, 2020, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2020 Macquarie Management Holdings, Inc.
Table of Contents
For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
The investment objective of DelawareTax-Free Minnesota Fund is to seek as high a level of current income exempt from federal income tax and from Minnesota state personal income taxes as is consistent with preservation of capital.
The investment objective of DelawareTax-Free Minnesota Intermediate Fund is to seek to provide investors with preservation of capital and, secondarily, current income exempt from federal income tax and Minnesota state personal income taxes, by maintaining a dollar-weighted average effective portfolio maturity of 10 years or less.
The investment objective of Delaware Minnesota High-Yield Municipal Bond Fund is to seek a high level of current income exempt from federal income tax and from Minnesota state personal income taxes, primarily through investment in medium- and lower-grade municipal obligations.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service(12b-1) fees; and other Fund expenses. 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 entiresix-month period from Sept. 1, 2019 to Feb. 29, 2020.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
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Table of Contents
Disclosure of Fund expenses
For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
DelawareTax-Free Minnesota Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,025.00 | 0.85% | $4.28 | ||||||||||
Class C | 1,000.00 | 1,021.20 | 1.60% | 8.04 | ||||||||||
Institutional Class | 1,000.00 | 1,026.20 | 0.60% | 3.02 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.64 | 0.85% | $4.27 | ||||||||||
Class C | 1,000.00 | 1,016.91 | 1.60% | 8.02 | ||||||||||
Institutional Class | 1,000.00 | 1,021.88 | 0.60% | 3.02 |
DelawareTax-Free Minnesota Intermediate Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $1,023.50 | 0.71% | $3.57 | ||||||||||||
Class C | 1,000.00 | 1,019.20 | 1.56% | 7.83 | ||||||||||||
Institutional Class | 1,000.00 | 1,025.20 | 0.56% | 2.82 | ||||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||||
Class A | $1,000.00 | $1,021.33 | 0.71% | $3.57 | ||||||||||||
Class C | 1,000.00 | 1,017.11 | 1.56% | 7.82 | ||||||||||||
Institutional Class | 1,000.00 | 1,022.08 | 0.56% | 2.82 |
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Table of Contents
Delaware Minnesota High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,029.30 | 0.89% | $4.49 | ||||||||||
Class C | 1,000.00 | 1,025.50 | 1.64% | 8.26 | ||||||||||
Institutional Class | 1,000.00 | 1,030.60 | 0.64% | 3.23 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.44 | 0.89% | $4.47 | ||||||||||
Class C | 1,000.00 | 1,016.71 | 1.64% | 8.22 | ||||||||||
Institutional Class | 1,000.00 | 1,021.68 | 0.64% | 3.22 |
*“Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect theone-half year period).
†Because actual returns reflect only the most recentsix-month period, the returns shown may differ significantly from fiscal year returns.
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Table of Contents
Security type / sector / state / territory allocations | ||
DelawareTax-Free Minnesota Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||||
Municipal Bonds* | 99.09 | % | ||||
Corporate Revenue Bond | 0.75 | % | ||||
Education Revenue Bonds | 18.12 | % | ||||
Electric Revenue Bonds | 7.84 | % | ||||
Healthcare Revenue Bonds | 24.22 | % | ||||
Housing Revenue Bonds | 0.40 | % | ||||
Lease Revenue Bonds | 2.66 | % | ||||
Local General Obligation Bonds | 11.54 | % | ||||
Pre-Refunded/Escrowed to Maturity Bonds | 5.93 | % | ||||
Special Tax Revenue Bonds | 4.85 | % | ||||
State General Obligation Bonds | 13.12 | % | ||||
Transportation Revenue Bonds | 6.68 | % | ||||
Water & Sewer Revenue Bonds | 2.98 | % | ||||
Short-Term Investments | 1.65 | % | ||||
Total Value of Securities | 100.74 | % | ||||
Liabilities Net of Receivables and Other Assets | (0.74 | %) | ||||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free Minnesota Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||||
Guam | 0.38 | % | ||||
Minnesota | 95.08 | % | ||||
Puerto Rico | 4.92 | % | ||||
US Virgin Islands | 0.36 | % | ||||
Total Value of Securities | 100.74 | % |
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Table of Contents
Security type / sector / state / territory allocations | ||
DelawareTax-Free Minnesota Intermediate Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||||
Municipal Bonds* | 98.63 | % | ||||
Corporate Revenue Bond | 0.58 | % | ||||
Education Revenue Bonds | 13.70 | % | ||||
Electric Revenue Bonds | 8.05 | % | ||||
Healthcare Revenue Bonds | 25.52 | % | ||||
Housing Revenue Bond | 0.37 | % | ||||
Lease Revenue Bonds | 5.93 | % | ||||
Local General Obligation Bonds | 12.82 | % | ||||
Pre-Refunded/Escrowed to Maturity Bonds | 8.65 | % | ||||
Special Tax Revenue Bonds | 3.70 | % | ||||
State General Obligation Bonds | 10.67 | % | ||||
Transportation Revenue Bonds | 6.16 | % | ||||
Water & Sewer Revenue Bonds | 2.48 | % | ||||
Short-Term Investment | 1.34 | % | ||||
Total Value of Securities | 99.97 | % | ||||
Receivables and Other Assets Net of Liabilities | 0.03 | % | ||||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free Minnesota Intermediate Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||||
Guam | 0.83 | % | ||||
Minnesota | 95.80 | % | ||||
Puerto Rico | 3.34 | % | ||||
Total Value of Securities | 99.97 | % |
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Table of Contents
Security type / sector / state / territory allocations | ||
Delaware Minnesota High-Yield Municipal Bond Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||||
Municipal Bonds* | 96.80 | % | ||||
Corporate Revenue Bond | 1.21 | % | ||||
Education Revenue Bonds | 18.34 | % | ||||
Electric Revenue Bonds | 5.61 | % | ||||
Healthcare Revenue Bonds | 32.35 | % | ||||
Housing Revenue Bonds | 1.48 | % | ||||
Lease Revenue Bonds | 2.12 | % | ||||
Local General Obligation Bonds | 7.23 | % | ||||
Pre-Refunded/Escrowed to Maturity Bonds | 3.70 | % | ||||
Special Tax Revenue Bonds | 4.95 | % | ||||
State General Obligation Bonds | 12.71 | % | ||||
Transportation Revenue Bonds | 6.05 | % | ||||
Water & Sewer Revenue Bonds | 1.05 | % | ||||
Short-Term Investments | 1.65 | % | ||||
Total Value of Securities | 98.45 | % | ||||
Receivables and Other Assets Net of Liabilities | 1.55 | % | ||||
Total Net Assets | 100.00 | % |
*As of the date of this report, Delaware Minnesota High-Yield Municipal Bond Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||||
Minnesota | 93.56 | % | ||||
Puerto Rico | 4.89 | % | ||||
Total Value of Securities | 98.45 | % |
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Table of Contents
Schedules of investments | ||
DelawareTax-Free Minnesota Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 99.09% | ||||||||
| ||||||||
Corporate Revenue Bond – 0.75% | ||||||||
St. Paul Port Authority Solid Waste Disposal Revenue | ||||||||
(Gerdau St. Paul Steel Mill Project) | ||||||||
Series 7 144A 4.50% 10/1/37 (AMT)# | 4,355,000 | $ | 4,536,691 | |||||
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4,536,691 | ||||||||
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Education Revenue Bonds – 18.12% | ||||||||
Bethel Charter School Lease Revenue | ||||||||
(Spectrum High School Project) | ||||||||
Series A 4.00% 7/1/32 | 840,000 | 916,642 | ||||||
Series A 4.25% 7/1/47 | 1,550,000 | 1,675,627 | ||||||
Series A 4.375% 7/1/52 | 400,000 | 433,752 | ||||||
Brooklyn Park Charter School Lease Revenue | ||||||||
(Prairie Seeds Academy Project) | ||||||||
Series A 5.00% 3/1/34 | 2,260,000 | 2,379,170 | ||||||
Series A 5.00% 3/1/39 | 385,000 | 401,567 | ||||||
Cologne Charter School Lease Revenue | ||||||||
(Cologne Academy Project) | ||||||||
Series A 5.00% 7/1/34 | 250,000 | 272,580 | ||||||
Series A 5.00% 7/1/45 | 1,390,000 | 1,496,140 | ||||||
Deephaven Charter School Lease Revenue | ||||||||
(Eagle Ridge Academy Project) Series A 5.50% 7/1/50 | 2,000,000 | 2,222,360 | ||||||
Duluth Housing & Redevelopment Authority Revenue | ||||||||
(Duluth Public Schools Academy Project) | ||||||||
Series A 5.00% 11/1/38 | 700,000 | 797,244 | ||||||
Series A 5.00% 11/1/48 | 2,800,000 | 3,152,632 | ||||||
Duluth Independent School District No. 709 Certificates of Participation | ||||||||
Series B 5.00% 2/1/28 | 350,000 | 444,633 | ||||||
Forest Lake Charter School Lease Revenue Fund | ||||||||
(Lakes International Language Academy Project) | ||||||||
Series A 5.25% 8/1/43 | 400,000 | 458,316 | ||||||
Series A 5.375% 8/1/50 | 1,690,000 | 1,941,725 | ||||||
Series A 5.50% 8/1/36 | 580,000 | 628,094 | ||||||
Series A 5.75% 8/1/44 | 1,190,000 | 1,286,818 | ||||||
Ham Lake Charter School Lease Revenue | ||||||||
(Davinci Academy Project) | ||||||||
Series A 5.00% 7/1/36 | 765,000 | 827,707 | ||||||
Series A 5.00% 7/1/47 | 2,290,000 | 2,454,651 | ||||||
Hugo Charter School Lease Revenue | ||||||||
(Noble Academy Project) | ||||||||
Series A 5.00% 7/1/34 | 580,000 | 626,481 | ||||||
Series A 5.00% 7/1/44 | 1,770,000 | 1,887,404 |
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Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
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Municipal Bonds (continued) | ||||||||
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Education Revenue Bonds (continued) | ||||||||
Minneapolis Charter School Lease Revenue | ||||||||
(Hiawatha Academies Project) | ||||||||
Series A 5.00% 7/1/31 | 885,000 | $ | 977,199 | |||||
Series A 5.00% 7/1/47 | 2,300,000 | 2,493,384 | ||||||
Minneapolis Student Housing Revenue | ||||||||
(Riverton Community Housing Project) | ||||||||
5.25% 8/1/39 | 470,000 | 510,340 | ||||||
5.50% 8/1/49 | 2,260,000 | 2,467,332 | ||||||
Minnesota Colleges & Universities Revenue Fund | ||||||||
Series A 5.00% 10/1/26 | 4,990,000 | 6,283,059 | ||||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(Bethel University) | ||||||||
5.00% 5/1/32 | 1,375,000 | 1,646,191 | ||||||
5.00% 5/1/37 | 1,250,000 | 1,480,375 | ||||||
5.00% 5/1/47 | 250,000 | 291,600 | ||||||
(Carleton College) | ||||||||
4.00% 3/1/35 | 1,000,000 | 1,167,230 | ||||||
4.00% 3/1/36 | 415,000 | 483,774 | ||||||
5.00% 3/1/44 | 2,085,000 | 2,560,734 | ||||||
(College of St. Benedict) Series8-K 4.00% 3/1/43 | 1,000,000 | 1,082,650 | ||||||
(College of St. Scholastica) | ||||||||
4.00% 12/1/29 | 280,000 | 336,372 | ||||||
4.00% 12/1/30 | 290,000 | 345,544 | ||||||
4.00% 12/1/33 | 500,000 | 584,540 | ||||||
4.00% 12/1/34 | 500,000 | 582,880 | ||||||
4.00% 12/1/40 | 1,200,000 | 1,381,932 | ||||||
(Gustavus Adolphus College) 5.00% 10/1/47 | 5,600,000 | 6,759,480 | ||||||
(St. Catherine University) | ||||||||
Series A 4.00% 10/1/36 | 925,000 | 1,059,717 | ||||||
Series A 5.00% 10/1/35 | 875,000 | 1,096,393 | ||||||
Series A 5.00% 10/1/45 | 2,120,000 | 2,600,731 | ||||||
(St. John’s University) | ||||||||
Series8-I 5.00% 10/1/32 | 500,000 | 595,655 | ||||||
Series8-I 5.00% 10/1/33 | 250,000 | 297,243 | ||||||
(St. Olaf College) | ||||||||
Series8-G 5.00% 12/1/31 | 670,000 | 808,201 | ||||||
Series8-G 5.00% 12/1/32 | 670,000 | 807,370 | ||||||
Series8-N 4.00% 10/1/35 | 500,000 | 576,220 | ||||||
(Trustees of The Hamline University) | ||||||||
Series B 5.00% 10/1/37 | 955,000 | 1,120,225 | ||||||
Series B 5.00% 10/1/38 | 1,000,000 | 1,170,510 | ||||||
Series B 5.00% 10/1/39 | 170,000 | 198,648 |
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Table of Contents
Principal amount° | Value (US $) | |||||||
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Municipal Bonds(continued) | ||||||||
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Education Revenue Bonds(continued) | ||||||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(Trustees of The Hamline University) | ||||||||
Series B 5.00% 10/1/40 | 625,000 | $ | 729,437 | |||||
Series B 5.00% 10/1/47 | 1,060,000 | 1,226,250 | ||||||
(University of St. Thomas) | ||||||||
4.00% 10/1/36 | 1,450,000 | 1,746,047 | ||||||
4.00% 10/1/37 | 750,000 | 900,120 | ||||||
4.00% 10/1/44 | 1,255,000 | 1,472,918 | ||||||
5.00% 10/1/40 | 500,000 | 646,170 | ||||||
Series8-L 5.00% 4/1/35 | 1,250,000 | 1,504,225 | ||||||
Series A 4.00% 10/1/34 | 400,000 | 463,760 | ||||||
Series A 4.00% 10/1/36 | 500,000 | 578,245 | ||||||
Minnesota Office of Higher Education Revenue | ||||||||
(Senior Supplemental Student Loan Program) 2.65% 11/1/38 (AMT) | 1,000,000 | 1,026,130 | ||||||
Otsego Charter School Lease Revenue | ||||||||
(Kaleidoscope Charter School) | ||||||||
Series A 5.00% 9/1/34 | 520,000 | 556,197 | ||||||
Series A 5.00% 9/1/44 | 1,165,000 | 1,230,147 | ||||||
Rice County Educational Facilities Revenue | ||||||||
(Shattuck-St. Mary’s School) Series A 144A 5.00% 8/1/22 # | 2,855,000 | 3,007,857 | ||||||
St. Cloud Charter School Lease Revenue | ||||||||
(Stride Academy Project) Series A 5.00% 4/1/46 | 875,000 | 600,425 | ||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 | 1,945,000 | 2,046,218 | ||||||
(Great River School Project) | ||||||||
Series A 144A 4.75% 7/1/29 # | 300,000 | 328,914 | ||||||
Series A 144A 5.50% 7/1/52 # | 735,000 | 810,271 | ||||||
(Nova Classical Academy Project) | ||||||||
Series A 4.00% 9/1/36 | 500,000 | 537,960 | ||||||
Series A 4.125% 9/1/47 | 1,750,000 | 1,869,245 | ||||||
(Twin Cities Academy Project) Series A 5.30% 7/1/45 | 1,440,000 | 1,581,062 | ||||||
University of Minnesota | ||||||||
Series A 5.00% 4/1/34 | 925,000 | 1,133,883 | ||||||
Series A 5.00% 9/1/34 | 2,625,000 | 3,337,241 | ||||||
Series A 5.00% 4/1/35 | 3,175,000 | 3,886,899 | ||||||
Series A 5.00% 4/1/36 | 2,650,000 | 3,238,830 | ||||||
Series A 5.00% 4/1/37 | 1,125,000 | 1,372,680 |
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Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
University of Minnesota | ||||||||
Series A 5.00% 9/1/40 | 1,560,000 | $ | 1,958,284 | |||||
Series A 5.00% 9/1/41 | 1,750,000 | 2,192,120 | ||||||
Series A 5.00% 4/1/44 | 3,000,000 | 3,871,020 | ||||||
|
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109,921,627 | ||||||||
|
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Electric Revenue Bonds – 7.84% | ||||||||
Chaska Electric Revenue | ||||||||
(Generating Facilities) Series A 5.00% 10/1/30 | 1,150,000 | 1,380,690 | ||||||
Minnesota Municipal Power Agency Electric Revenue | ||||||||
4.00% 10/1/41 | 1,000,000 | 1,130,880 | ||||||
5.00% 10/1/29 | 395,000 | 464,295 | ||||||
5.00% 10/1/30 | 500,000 | 586,970 | ||||||
5.00% 10/1/33 | 1,205,000 | 1,412,489 | ||||||
5.00% 10/1/47 | 2,000,000 | 2,410,840 | ||||||
Series A 5.00% 10/1/30 | 1,060,000 | 1,244,376 | ||||||
Series A 5.00% 10/1/34 | 750,000 | 879,315 | ||||||
Series A 5.00% 10/1/35 | 1,525,000 | 1,788,093 | ||||||
Northern Municipal Power Agency Electric System Revenue | ||||||||
5.00% 1/1/27 | 540,000 | 658,525 | ||||||
5.00% 1/1/28 | 350,000 | 424,735 | ||||||
5.00% 1/1/28 | 210,000 | 262,072 | ||||||
5.00% 1/1/29 | 585,000 | 707,593 | ||||||
5.00% 1/1/29 | 220,000 | 273,519 | ||||||
5.00% 1/1/30 | 520,000 | 625,711 | ||||||
5.00% 1/1/31 | 200,000 | 246,164 | ||||||
5.00% 1/1/32 | 210,000 | 257,414 | ||||||
5.00% 1/1/35 | 160,000 | 194,693 | ||||||
5.00% 1/1/36 | 180,000 | 218,644 | ||||||
5.00% 1/1/41 | 400,000 | 481,876 | ||||||
Series A 5.00% 1/1/25 | 125,000 | 138,867 | ||||||
Series A 5.00% 1/1/26 | 425,000 | 471,899 | ||||||
Series A 5.00% 1/1/31 | 520,000 | 573,238 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.05% 7/1/42 ‡ | 430,000 | 343,463 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 250,000 | 200,313 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 1,875,000 | 1,502,344 | ||||||
Series WW 5.00% 7/1/28 ‡ | 1,775,000 | 1,417,781 | ||||||
Series WW 5.25% 7/1/33 ‡ | 1,250,000 | 1,001,563 | ||||||
Series XX 4.75% 7/1/26 ‡ | 260,000 | 206,375 | ||||||
Series XX 5.25% 7/1/40 ‡ | 750,000 | 600,937 |
10
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Electric Revenue Bonds(continued) | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series XX 5.75% 7/1/36 ‡ | 925,000 | $ | 745,781 | |||||
Series ZZ 4.75% 7/1/27 ‡ | 210,000 | 166,687 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 350,000 | 280,437 | ||||||
Rochester Electric Utility Revenue | ||||||||
Series A 5.00% 12/1/42 | 1,395,000 | 1,697,087 | ||||||
Series A 5.00% 12/1/47 | 2,265,000 | 2,745,837 | ||||||
Series B 5.00% 12/1/27 | 295,000 | 338,353 | ||||||
Series B 5.00% 12/1/28 | 275,000 | 314,977 | ||||||
Series B 5.00% 12/1/31 | 1,365,000 | 1,559,635 | ||||||
Series B 5.00% 12/1/33 | 300,000 | 343,134 | ||||||
Southern Minnesota Municipal Power Agency Revenue | ||||||||
Series A 5.00% 1/1/41 | 1,310,000 | 1,557,642 | ||||||
Series A 5.00% 1/1/42 | 1,500,000 | 1,867,035 | ||||||
Series A 5.00% 1/1/46 | 2,000,000 | 2,369,380 | ||||||
Series A 5.00% 1/1/47 | 3,130,000 | 3,884,799 | ||||||
Southern Minnesota Municipal Power Agency Revenue | ||||||||
Capital Appreciation | ||||||||
Series A 6.70% 1/1/25 (NATL)^ | 5,000,000 | 4,727,900 | ||||||
St. Paul Housing & Redevelopment Energy Revenue | ||||||||
Series A 4.00% 10/1/30 | 1,235,000 | 1,429,130 | ||||||
Series A 4.00% 10/1/31 | 885,000 | 1,018,175 | ||||||
Series A 4.00% 10/1/33 | 365,000 | 417,753 | ||||||
|
| |||||||
47,569,416 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 24.22% | ||||||||
Anoka Healthcare & Housing Facilities Revenue | ||||||||
(The Homestead at Anoka Project) | ||||||||
5.125% 11/1/49 | 1,100,000 | 1,175,724 | ||||||
5.375% 11/1/34 | 320,000 | 350,627 | ||||||
Apple Valley Senior Housing Revenue | ||||||||
(PHS Apple Valley Senior Housing, Inc. - Orchard Path Project) | ||||||||
5.00% 9/1/43 | 465,000 | 505,962 | ||||||
5.00% 9/1/58 | 3,220,000 | 3,486,809 | ||||||
Apple Valley Senior Living Revenue | ||||||||
(Senior Living LLC Project) | ||||||||
2nd Tier Series B 5.00% 1/1/47 | 1,725,000 | 1,415,225 | ||||||
2nd Tier Series B 5.25% 1/1/37 | 505,000 | 446,597 | ||||||
4th Tier Series D 7.00% 1/1/37 | 1,665,000 | 1,635,763 | ||||||
4th Tier Series D 7.25% 1/1/52 | 2,500,000 | 2,450,975 |
11
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Bethel Housing & Health Care Facilities Revenue | ||||||||
(Benedictine Health System – St. Peter Communities Project) Series A 5.50% 12/1/48 | 2,350,000 | $ | 2,527,589 | |||||
Bethel Senior Housing Revenue | ||||||||
(The Lodge at The Lakes at Stillwater Project) | ||||||||
5.00% 6/1/38 | 450,000 | 481,572 | ||||||
5.00% 6/1/48 | 1,000,000 | 1,064,400 | ||||||
5.00% 6/1/53 | 600,000 | 636,732 | ||||||
Center City Health Care Facilities Revenue | ||||||||
(Hazelden Betty Ford Foundation Project) | ||||||||
4.00% 11/1/34 | 500,000 | 586,035 | ||||||
4.00% 11/1/41 | 800,000 | 924,464 | ||||||
5.00% 11/1/26 | 500,000 | 583,560 | ||||||
Chatfield Healthcare and Housing Facilities Revenue | ||||||||
(Chosen Valley Care Center Project) 5.00% 9/1/44 | 500,000 | 547,840 | ||||||
Crookston Health Care Facilities Revenue | ||||||||
(Riverview Health Project) | ||||||||
5.00% 5/1/38 | 100,000 | 116,358 | ||||||
5.00% 5/1/44 | 1,500,000 | 1,721,925 | ||||||
5.00% 5/1/51 | 1,585,000 | 1,806,409 | ||||||
Dakota County Community Development Agency Senior Housing Revenue | ||||||||
(Walker Highview Hills Project) | ||||||||
Series A 144A 5.00% 8/1/36 # | 280,000 | 295,266 | ||||||
Series A 144A 5.00% 8/1/46 # | 2,380,000 | 2,492,693 | ||||||
Deephaven Housing & Healthcare Revenue | ||||||||
(St. Therese Senior Living Project) | ||||||||
Series A 5.00% 4/1/38 | 730,000 | 753,053 | ||||||
Series A 5.00% 4/1/40 | 705,000 | 727,059 | ||||||
Series A 5.00% 4/1/48 | 315,000 | 324,211 | ||||||
Duluth Economic Development Authority | ||||||||
(Essentia Health Obligated Group) | ||||||||
Series A 4.25% 2/15/43 | 2,000,000 | 2,310,880 | ||||||
Series A 5.00% 2/15/48 | 1,850,000 | 2,287,858 | ||||||
(St. Luke’s Hospital of Duluth Obligated Group) | ||||||||
5.75% 6/15/32 | 1,850,000 | 2,017,443 | ||||||
6.00% 6/15/39 | 3,570,000 | 3,924,751 | ||||||
Glencoe Health Care Facilities Revenue | ||||||||
(Glencoe Regional Health Services Project) | ||||||||
4.00% 4/1/24 | 500,000 | 524,815 | ||||||
4.00% 4/1/25 | 660,000 | 692,743 | ||||||
4.00% 4/1/31 | 60,000 | 62,655 |
12
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Hayward Health Care Facilities Revenue | ||||||||
(American Baptist Homes Midwest Obligated Group) | ||||||||
5.375% 8/1/34 | 660,000 | $ | 699,356 | |||||
5.75% 2/1/44 | 500,000 | 531,720 | ||||||
(St. John’s Lutheran Home of Albert Lea Project) | 575,000 | 607,016 | ||||||
Maple Grove Health Care Facilities Revenue | ||||||||
(Maple Grove Hospital Corporation) | ||||||||
4.00% 5/1/37 | 2,000,000 | 2,258,000 | ||||||
5.00% 5/1/27 | 1,400,000 | 1,755,460 | ||||||
5.00% 5/1/29 | 1,000,000 | 1,240,110 | ||||||
5.00% 5/1/30 | 850,000 | 1,049,988 | ||||||
5.00% 5/1/31 | 500,000 | 614,905 | ||||||
5.00% 5/1/32 | 500,000 | 613,185 | ||||||
(North Memorial Health Care) | ||||||||
5.00% 9/1/31 | 1,000,000 | 1,183,960 | ||||||
5.00% 9/1/32 | 1,000,000 | 1,181,180 | ||||||
Maple Plain Senior Housing & Health Care Revenue | ||||||||
(Haven Homes Project) 5.00% 7/1/54 | 3,500,000 | 3,800,475 | ||||||
Minneapolis Health Care System Revenue | ||||||||
(Fairview Health Services) | ||||||||
Series A 4.00% 11/15/48 | 5,600,000 | 6,420,736 | ||||||
Series A 5.00% 11/15/33 | 500,000 | 601,215 | ||||||
Series A 5.00% 11/15/34 | 500,000 | 600,460 | ||||||
Series A 5.00% 11/15/44 | 1,000,000 | 1,177,830 | ||||||
Series A 5.00% 11/15/49 | 3,475,000 | 4,279,532 | ||||||
Minneapolis Senior Housing & Healthcare Revenue | ||||||||
(Ecumen-Abiitan Mill City Project) | ||||||||
5.00% 11/1/35 | 500,000 | 529,615 | ||||||
5.25% 11/1/45 | 1,950,000 | 2,060,760 | ||||||
5.375% 11/1/50 | 455,000 | 481,836 | ||||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(Allina Health System) Series A 5.00% 11/15/28 | 1,550,000 | 1,955,837 | ||||||
(Children’s Health Care) Series A 5.25% 8/15/35 | 2,085,000 | 2,126,387 | ||||||
Red Wing Senior Housing | ||||||||
(Deer Crest Project) | ||||||||
Series A 5.00% 11/1/27 | 430,000 | 441,335 | ||||||
Series A 5.00% 11/1/32 | 330,000 | 338,544 | ||||||
Series A 5.00% 11/1/42 | 1,250,000 | 1,281,450 |
13
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Rochester Health Care & Housing Revenue | ||||||||
(The Homestead at Rochester Project) | ||||||||
Series A 6.875% 12/1/48 | 2,980,000 | $ | 3,273,858 | |||||
Rochester Health Care Facilities Revenue | ||||||||
(Mayo Clinic) | 4,515,000 | 4,783,552 | ||||||
Series D Remarketing 5.00% 11/15/38 | 6,405,000 | 6,449,963 | ||||||
(Olmsted Medical Center Project) | ||||||||
5.00% 7/1/24 | 295,000 | 332,580 | ||||||
5.00% 7/1/33 | 650,000 | 715,969 | ||||||
5.875% 7/1/30 | 1,850,000 | 1,877,861 | ||||||
Sartell Health Care Facilities Revenue | ||||||||
(Country Manor Campus Project) | ||||||||
Series A 5.25% 9/1/27 | 1,280,000 | 1,384,960 | ||||||
Series A 5.30% 9/1/37 | 1,200,000 | 1,316,400 | ||||||
Sauk Rapids Health Care Housing Facilities Revenue | ||||||||
(Good Shepherd Lutheran Home) 5.125% 1/1/39 | 1,350,000 | 1,413,329 | ||||||
Shakopee Health Care Facilities Revenue | ||||||||
(St. Francis Regional Medical Center) | ||||||||
4.00% 9/1/31 | 915,000 | 997,835 | ||||||
5.00% 9/1/24 | 575,000 | 668,069 | ||||||
5.00% 9/1/25 | 750,000 | 872,280 | ||||||
5.00% 9/1/26 | 575,000 | 667,161 | ||||||
5.00% 9/1/27 | 405,000 | 468,929 | ||||||
5.00% 9/1/28 | 425,000 | 491,517 | ||||||
5.00% 9/1/29 | 425,000 | 490,658 | ||||||
5.00% 9/1/34 | 730,000 | 829,302 | ||||||
St. Cloud Health Care Revenue | ||||||||
(Centracare Health System Project) | ||||||||
4.00% 5/1/49 | 4,315,000 | 4,970,405 | ||||||
5.00% 5/1/48 | 5,090,000 | 6,403,271 | ||||||
Series A 4.00% 5/1/37 | 965,000 | 1,088,057 | ||||||
Series A 5.00% 5/1/46 | 3,715,000 | 4,420,404 | ||||||
Unrefunded Balance 5.125% 5/1/30 | 740,000 | 744,825 | ||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(Fairview Health Services) | ||||||||
Series A 4.00% 11/15/43 | 2,450,000 | 2,794,789 | ||||||
Series A 5.00% 11/15/47 | 1,560,000 | 1,898,738 | ||||||
(HealthPartners Obligated Group Project) | ||||||||
Series A 5.00% 7/1/29 | 2,200,000 | 2,611,752 |
14
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(HealthPartners Obligated Group Project) | ||||||||
Series A 5.00% 7/1/32 | 3,000,000 | $ | 3,510,150 | |||||
Series A 5.00% 7/1/33 | 1,260,000 | 1,468,618 | ||||||
St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue | ||||||||
(Episcopal Homes Project) 5.125% 5/1/48 | 3,100,000 | 3,213,615 | ||||||
St. Paul Housing & Redevelopment Authority Multifamily Housing Revenue | ||||||||
(Marian Center Project) | ||||||||
Series A 5.30% 11/1/30 | 500,000 | 500,405 | ||||||
Series A 5.375% 5/1/43 | 500,000 | 500,270 | ||||||
Wayzata Senior Housing Revenue | ||||||||
(Folkestone Senior Living Community) | ||||||||
3.75% 8/1/36 | 500,000 | 535,775 | ||||||
4.00% 8/1/44 | 800,000 | 856,832 | ||||||
5.00% 8/1/49 | 1,000,000 | 1,122,600 | ||||||
5.00% 8/1/54 | 875,000 | 980,315 | ||||||
West St. Paul Housing and Health Care Facilities Revenue | ||||||||
(Walker Westwood Ridge Campus Project) | ||||||||
4.50% 11/1/40 | 250,000 | 263,780 | ||||||
4.75% 11/1/52 | 750,000 | 795,757 | ||||||
Winona Health Care Facilities Revenue | ||||||||
(Winona Health Obligation Group) | ||||||||
4.50% 7/1/25 | 850,000 | 876,937 | ||||||
4.65% 7/1/26 | 540,000 | 558,009 | ||||||
Woodbury Housing & Redevelopment Authority Revenue | ||||||||
(St. Therese of Woodbury) | ||||||||
5.00% 12/1/34 | 500,000 | 539,075 | ||||||
5.125% 12/1/44 | 1,605,000 | 1,715,841 | ||||||
5.25% 12/1/49 | 750,000 | 805,860 | ||||||
|
| |||||||
146,919,188 | ||||||||
|
| |||||||
Housing Revenue Bonds – 0.40% | ||||||||
Minnesota Housing Finance Agency Homeownership Finance (Mortgage-Backed Securities Program) | ||||||||
Series D 4.70% 1/1/31 (GNMA) (FNMA) (FHLMC) | 950,000 | 987,012 | ||||||
Northwest Multi-County Housing & Redevelopment Authority | ||||||||
(Pooled Housing Program) 5.50% 7/1/45 | 1,330,000 | 1,429,391 | ||||||
|
| |||||||
2,416,403 | ||||||||
|
|
15
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Lease Revenue Bonds – 2.66% | ||||||||
Minnesota General Fund Revenue Appropriations | ||||||||
Series A 5.00% 6/1/38 | 1,250,000 | $ | 1,404,050 | |||||
Series A 5.00% 6/1/43 | 3,835,000 | 4,290,675 | ||||||
Series B 5.00% 3/1/28 | 2,500,000 | 2,704,325 | ||||||
Minnesota Housing Finance Agency | ||||||||
(State Appropriation – Housing Infrastructure) | ||||||||
Series C 5.00% 8/1/34 | 1,565,000 | 1,824,696 | ||||||
Series C 5.00% 8/1/35 | 1,645,000 | 1,915,668 | ||||||
University of Minnesota Special Purpose Revenue | ||||||||
(State Supported Biomed Science Research Facilities Funding Project) | ||||||||
Series A 5.00% 8/1/35 | 3,960,000 | 4,025,102 | ||||||
|
| |||||||
16,164,516 | ||||||||
|
| |||||||
Local General Obligation Bonds – 11.54% | ||||||||
Brainerd Independent School District No. 181 | ||||||||
(School Building) | ||||||||
Series A 4.00% 2/1/38 | 1,500,000 | 1,719,825 | ||||||
Series A 4.00% 2/1/43 | 3,500,000 | 3,972,885 | ||||||
Burnsville-Eagan-Savage Independent School District No. 191 | ||||||||
(Alternative Facilities) | ||||||||
Series A 4.00% 2/1/28 | 920,000 | 1,042,949 | ||||||
Series A 4.00% 2/1/29 | 1,800,000 | 2,038,518 | ||||||
Chaska Independent School District No. 112 | ||||||||
(School Building) Series A 5.00% 2/1/27 | 1,905,000 | 2,351,799 | ||||||
Duluth | ||||||||
(DECC Improvement) | ||||||||
Series A 5.00% 2/1/32 | 1,000,000 | 1,220,070 | ||||||
Series A 5.00% 2/1/33 | 3,585,000 | 4,366,745 | ||||||
Duluth Independent School District No. 709 | ||||||||
Series A 4.00% 2/1/27 | 160,000 | 182,400 | ||||||
Series A 4.00% 2/1/28 | 1,250,000 | 1,422,313 | ||||||
Hennepin County | ||||||||
Series A 5.00% 12/1/26 | 1,885,000 | 2,407,013 | ||||||
Series A 5.00% 12/1/36 | 940,000 | 1,175,038 | ||||||
Series A 5.00% 12/1/37 | 2,850,000 | 3,645,720 | ||||||
Series A 5.00% 12/1/37 | 2,645,000 | 3,297,760 | ||||||
Series A 5.00% 12/1/38 | 3,310,000 | 4,224,586 | ||||||
Series B 5.00% 12/1/30 | 1,000,000 | 1,262,220 | ||||||
Series C 5.00% 12/1/28 | 1,500,000 | 2,019,690 | ||||||
Series C 5.00% 12/1/30 | 1,245,000 | 1,571,464 | ||||||
Series C 5.00% 12/1/37 | 3,000,000 | 3,740,370 |
16
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Local General Obligation Bonds(continued) | ||||||||
Minneapolis Special School District No. 1 | ||||||||
Series A 4.00% 2/1/36 | 450,000 | $ | 539,635 | |||||
Series A 4.00% 2/1/37 | 600,000 | 717,894 | ||||||
Series A 4.00% 2/1/38 | 625,000 | 745,100 | ||||||
Series B 4.00% 2/1/36 | 945,000 | 1,133,235 | ||||||
Series B 4.00% 2/1/37 | 1,255,000 | 1,501,595 | ||||||
Series B 4.00% 2/1/38 | 1,305,000 | 1,555,769 | ||||||
Mounds View Independent School District No. 621 | ||||||||
(Minnesota School District Credit Enhancement Program) Series A 4.00% 2/1/43 | 3,000,000 | 3,417,840 | ||||||
Mountain Iron-Buhl Independent School District No. 712 | ||||||||
(School Building) Series A 4.00% 2/1/26 | 1,315,000 | 1,546,519 | ||||||
St. Michael-Albertville Independent School District No. 885 | ||||||||
(School Building) Series A 5.00% 2/1/27 | 1,865,000 | 2,299,993 | ||||||
Virginia, Minnesota Sales Tax Revenue | ||||||||
(General Obligation Sales Tax) Series A 4.00% 2/1/35 (AGM) | 500,000 | 582,655 | ||||||
Wayzata Independent School District No. 284 | ||||||||
Series A 5.00% 2/1/28 | 1,950,000 | 2,487,479 | ||||||
White Bear Lake Independent School District No. 624 | ||||||||
Series A 3.00% 2/1/43 | 11,000,000 | 11,797,060 | ||||||
|
| |||||||
69,986,139 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 5.93% | ||||||||
Dakota & Washington Counties Housing & Redevelopment Authority Single Family Residential Mortgage Revenue | ||||||||
(City of Bloomington) | ||||||||
Series B 8.375% 9/1/21 (GNMA) (AMT) | 14,115,000 | 15,574,914 | ||||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(St. Catherine University) | ||||||||
Series7-Q 5.00%10/1/23-22§ | 350,000 | 386,197 | ||||||
Series7-Q 5.00%10/1/24-22§ | 475,000 | 524,125 | ||||||
Series7-Q 5.00%10/1/27-22§ | 200,000 | 220,684 | ||||||
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue | ||||||||
(Healtheast Care System Project) | ||||||||
Series A 5.00%11/15/29-25§ | 910,000 | 1,119,682 | ||||||
Series A 5.00%11/15/30-25§ | 670,000 | 824,381 | ||||||
University of Minnesota | ||||||||
Series A 5.50% 7/1/21 | 4,500,000 | 4,670,370 | ||||||
Western Minnesota Municipal Power Agency Revenue | ||||||||
Series A 5.00%1/1/34-24§ | 4,000,000 | 4,641,880 |
17
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
Western Minnesota Municipal Power Agency Revenue | ||||||||
Series A 5.00%1/1/40-24§ | 3,935,000 | $ | 4,566,449 | |||||
Series A 5.00%1/1/46-24§ | 3,000,000 | 3,481,410 | ||||||
|
| |||||||
36,010,092 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 4.85% | ||||||||
Minneapolis Development Revenue | ||||||||
(Limited Tax Supported Common Bond Fund) | ||||||||
Series2-A 6.00% 12/1/40 | 3,000,000 | 3,113,670 | ||||||
Minneapolis Revenue | ||||||||
(YMCA Greater Twin Cities Project) 4.00% 6/1/30 | 250,000 | 281,797 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 10,173,000 | 11,517,057 | ||||||
SeriesA-1 5.00% 7/1/58 | 8,525,000 | 9,777,067 | ||||||
St. Paul Sales Tax Revenue | ||||||||
Series G 5.00% 11/1/30 | 655,000 | 770,791 | ||||||
Series G 5.00% 11/1/31 | 1,500,000 | 1,761,075 | ||||||
Virgin Islands Public Finance Authority | ||||||||
(Matching Fund Senior Lien) 5.00% 10/1/29 (AGM) | 2,000,000 | 2,180,140 | ||||||
|
| |||||||
29,401,597 | ||||||||
|
| |||||||
State General Obligation Bonds – 13.12% | ||||||||
Commonwealth of Puerto Rico | ||||||||
(Public Improvement) Series B 5.75% 7/1/38 ‡ | 2,530,000 | 2,058,787 | ||||||
Minnesota | ||||||||
Series A Unrefunded Balance 5.00% 10/1/24 | 4,555,000 | 4,857,361 | ||||||
Series A Unrefunded Balance 5.00% 10/1/27 | 5,200,000 | 5,536,700 | ||||||
(State Trunk Highway) | ||||||||
Series B 5.00% 10/1/29 | 5,000,000 | 5,321,300 | ||||||
Series E 5.00% 10/1/26 | 3,395,000 | 4,309,477 | ||||||
(Various Purposes) | ||||||||
Series A 5.00% 8/1/27 | 7,590,000 | 9,276,270 | ||||||
Series A 5.00% 8/1/29 | 2,500,000 | 3,048,025 | ||||||
Series A 5.00% 8/1/30 | 4,200,000 | 4,928,616 | ||||||
Series A 5.00% 8/1/32 | 3,875,000 | 4,538,090 | ||||||
Series A 5.00% 8/1/33 | 2,075,000 | 2,722,421 | ||||||
Series A 5.00% 10/1/33 | 1,000,000 | 1,285,340 | ||||||
Series A 5.00% 8/1/35 | 10,900,000 | 14,487,775 | ||||||
Series A 5.00% 8/1/38 | 3,450,000 | 4,474,685 | ||||||
Series A 5.00% 8/1/39 | 700,000 | 926,107 | ||||||
Series A Unrefunded Balance 4.00% 8/1/27 | 955,000 | 1,027,131 | ||||||
Series D 5.00% 8/1/26 | 6,000,000 | 7,579,500 |
18
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
State General Obligation Bonds(continued) | ||||||||
Minnesota | ||||||||
(Various Purposes) | ||||||||
Series D 5.00% 8/1/27 | 2,525,000 | $ | 3,186,070 | |||||
|
| |||||||
79,563,655 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 6.68% | ||||||||
Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
(Senior) | ||||||||
Series C 5.00% 1/1/29 | 350,000 | 442,463 | ||||||
Series C 5.00% 1/1/33 | 850,000 | 1,063,137 | ||||||
Series C 5.00% 1/1/36 | 600,000 | 746,772 | ||||||
Series C 5.00% 1/1/41 | 600,000 | 739,278 | ||||||
Series C 5.00% 1/1/46 | 1,595,000 | 1,950,015 | ||||||
(Subordinate) | ||||||||
Series A 5.00% 1/1/35 | 1,000,000 | 1,143,260 | ||||||
Series A 5.00% 1/1/44 | 3,000,000 | 3,877,230 | ||||||
Series A 5.00% 1/1/49 | 5,000,000 | 6,419,500 | ||||||
Series B 5.00% 1/1/26 | 575,000 | 618,631 | ||||||
Series B 5.00% 1/1/27 | 1,160,000 | 1,247,360 | ||||||
Series B 5.00% 1/1/28 | 2,750,000 | 2,956,057 | ||||||
Series B 5.00% 1/1/29 | 120,000 | 128,923 | ||||||
Series B 5.00% 1/1/30 | 1,675,000 | 1,797,979 | ||||||
Series B 5.00% 1/1/31 | 1,750,000 | 1,877,155 | ||||||
Series B 5.00% 1/1/44 (AMT) | 3,595,000 | 4,539,586 | ||||||
Series B 5.00% 1/1/49 (AMT) | 6,150,000 | 7,714,991 | ||||||
St. Paul Port Authority Revenue | ||||||||
(Amherst H. Wilder Foundation) Series 3 5.00% 12/1/36 | 3,200,000 | 3,241,952 | ||||||
|
| |||||||
40,504,289 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 2.98% | ||||||||
Guam Government Waterworks Authority 5.00% 7/1/40 | 1,930,000 | 2,307,624 | ||||||
Metropolitan Council General Obligation Wastewater Revenue | ||||||||
(Minneapolis-St. Paul Metropolitan Area) | ||||||||
Series B 4.00% 9/1/27 | 2,400,000 | 2,592,600 | ||||||
Series B 5.00% 9/1/25 | 2,000,000 | 2,209,180 | ||||||
Series C 4.00% 3/1/31 | 3,120,000 | 3,721,130 | ||||||
Series C 4.00% 3/1/32 | 3,225,000 | 3,835,879 | ||||||
Series E 5.00% 9/1/23 | 2,000,000 | 2,209,700 |
19
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Water & Sewer Revenue Bonds(continued) | ||||||||
Minnesota Public Facilities Authority | ||||||||
Series B 4.00% 3/1/26 | 1,000,000 | $ | 1,187,390 | |||||
|
| |||||||
18,063,503 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $560,098,975) | 601,057,116 | |||||||
|
| |||||||
| ||||||||
Short-Term Investments – 1.65% | ||||||||
| ||||||||
Variable Rate Demand Notes – 1.65%¤ | ||||||||
Minneapolis Health Care System Revenue | ||||||||
(Fairview Health Services) Series C 1.20% 11/15/48 | ||||||||
(LOC – Wells Fargo Bank N.A.) | 1,000,000 | 1,000,000 | ||||||
Rochester Health Care Facilities Revenue (Mayo Clinic) | ||||||||
Series A 1.14% 11/15/38 | 9,000,000 | 9,000,000 | ||||||
|
| |||||||
Total Short-Term Investments(cost $10,000,000) | 10,000,000 | |||||||
|
| |||||||
Total Value of Securities – 100.74% | $ | 611,057,116 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $11,471,692, which represents 1.89% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
FHLMC – Federal Home Loan Mortgage Corporation collateral
FNMA – Federal National Mortgage Association collateral
GNMA – Government National Mortgage Association collateral
20
Table of Contents
Summary of abbreviations (continued):
LOC – Letter of Credit
N.A. – National Association
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
21
Table of Contents
Schedules of investments | ||
DelawareTax-Free Minnesota Intermediate Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 98.63% | ||||||||
| ||||||||
Corporate Revenue Bond – 0.58% | ||||||||
St. Paul Port Authority Solid Waste Disposal Revenue | ||||||||
(Gerdau St. Paul Steel Mill Project) Series 7 144A 4.50% 10/1/37 (AMT)# | 460,000 | $ | 479,191 | |||||
|
| |||||||
479,191 | ||||||||
|
| |||||||
Education Revenue Bonds – 13.70% | ||||||||
Bethel Charter School Lease Revenue | ||||||||
(Spectrum High School Project) Series A 4.00% 7/1/32 | 425,000 | 463,777 | ||||||
Brooklyn Park Charter School Lease Revenue | ||||||||
(Prairie Seeds Academy Project) Series A 5.00% 3/1/34 | 485,000 | 510,574 | ||||||
Cologne Charter School Lease Revenue | ||||||||
(Cologne Academy Project) Series A 5.00% 7/1/29 | 305,000 | 336,345 | ||||||
Duluth Housing & Redevelopment Authority Revenue | ||||||||
(Duluth Public Schools Academy Project) Series A 5.00% 11/1/38 | 400,000 | 455,568 | ||||||
Forest Lake Charter School Lease Revenue Fund | ||||||||
(Lakes International Language Academy Project) | ||||||||
Series A 5.50% 8/1/36 | 420,000 | 454,826 | ||||||
Hugo Charter School Lease Revenue | ||||||||
(Noble Academy Project) Series A 5.00% 7/1/29 | 530,000 | 578,325 | ||||||
Minneapolis Charter School Lease Revenue | ||||||||
(Hiawatha Academies Project) Series A 5.00% 7/1/31 | 500,000 | 552,090 | ||||||
Minneapolis Student Housing Revenue | ||||||||
(Riverton Community Housing Project) 5.25% 8/1/39 | 525,000 | 570,061 | ||||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(Bethel University) 5.00% 5/1/32 | 525,000 | 628,546 | ||||||
(Gustavus Adolphus College) | ||||||||
5.00% 10/1/34 | 435,000 | 537,525 | ||||||
5.00% 10/1/35 | 555,000 | 684,565 | ||||||
(St. Catherine University) Series A 5.00% 10/1/35 | 565,000 | 707,956 | ||||||
(St. John’s University) Series8-I 5.00% 10/1/31 | 130,000 | 154,860 | ||||||
(St. Olaf College) | ||||||||
Series8-G 5.00% 12/1/31 | 125,000 | 150,784 | ||||||
Series8-G 5.00% 12/1/32 | 125,000 | 150,629 | ||||||
(University of St. Thomas) | ||||||||
4.00% 10/1/36 | 300,000 | 361,251 | ||||||
5.00% 10/1/34 | 350,000 | 459,819 | ||||||
5.00% 10/1/35 | 750,000 | 983,145 | ||||||
Series7-U 4.00% 4/1/26 | 1,400,000 | 1,525,790 | ||||||
Rice County Educational Facilities Revenue | ||||||||
(Shattuck-St. Mary’s School) Series A 144A 5.00% 8/1/22 # | 325,000 | 342,401 |
22
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
St. Paul Housing & Redevelopment Authority Charter | ||||||||
School Lease Revenue | ||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 | 340,000 | $ | 357,694 | |||||
(Great River School Project) Series A 144A 5.25% 7/1/33 # | 140,000 | 155,995 | ||||||
(Twin Cities Academy Project) Series A 5.30% 7/1/45 | 260,000 | 285,470 | ||||||
|
| |||||||
11,407,996 | ||||||||
|
| |||||||
Electric Revenue Bonds – 8.05% | ||||||||
Central Minnesota Municipal Power Agency | ||||||||
(Brookings Twin Cities Transmission Project) | ||||||||
Series E 5.00% 1/1/21 | 1,095,000 | 1,132,296 | ||||||
Series E 5.00% 1/1/23 | 1,000,000 | 1,072,850 | ||||||
Chaska Electric Revenue | ||||||||
Series A 5.00% 10/1/28 | 250,000 | 302,175 | ||||||
Minnesota Municipal Power Agency Electric Revenue | ||||||||
Series A 5.00% 10/1/29 | 500,000 | 587,715 | ||||||
Series A 5.00% 10/1/30 | 240,000 | 281,746 | ||||||
Northern Municipal Power Agency Electric System Revenue | ||||||||
5.00% 1/1/29 | 150,000 | 181,434 | ||||||
5.00% 1/1/30 | 235,000 | 290,599 | ||||||
5.00% 1/1/31 | 350,000 | 419,443 | ||||||
Series A 5.00% 1/1/25 | 200,000 | 222,188 | ||||||
Rochester Electric Utility Revenue | ||||||||
Series A 5.00% 12/1/28 | 300,000 | 377,502 | ||||||
Series A 5.00% 12/1/29 | 500,000 | 627,370 | ||||||
Series A 5.00% 12/1/31 | 575,000 | 715,495 | ||||||
St. Paul Housing & Redevelopment Energy Revenue | ||||||||
Series A 4.00% 10/1/30 | 425,000 | 491,806 | ||||||
|
| |||||||
6,702,619 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 25.52% | ||||||||
Anoka Healthcare & Housing Facilities Revenue | ||||||||
(The Homestead at Anoka Project) 5.375% 11/1/34 | 270,000 | 295,842 | ||||||
Apple Valley Senior Living Revenue | ||||||||
(Senior Living LLC Project) | ||||||||
3rd Tier Series C 4.25% 1/1/27 | 500,000 | 447,125 | ||||||
3rd Tier Series C 5.00% 1/1/32 | 420,000 | 368,520 | ||||||
Bethel Housing & Health Care Facilities Revenue | ||||||||
(Benedictine Health System - St. Peter Communities Project) Series A 5.50% 12/1/48 | 250,000 | 268,893 |
23
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Bethel Senior Housing Revenue | ||||||||
(The Lodge at the Lakes at Stillwater Project) | ||||||||
5.00% 6/1/38 | 250,000 | $ | 267,540 | |||||
Center City Health Care Facilities Revenue | ||||||||
(Hazelden Betty Ford Foundation Project) | ||||||||
5.00% 11/1/24 | 600,000 | 702,678 | ||||||
Chatfield Healthcare and Housing Facilities Revenue | ||||||||
(Chosen Valley Care Center Project) | ||||||||
4.00% 9/1/34 | 100,000 | 103,945 | ||||||
4.00% 9/1/39 | 100,000 | 102,243 | ||||||
Crookston Health Care Facilities Revenue | ||||||||
(RiverView Health Project) 5.00% 5/1/38 | 400,000 | 465,432 | ||||||
Dakota County Community Development Agency Senior | ||||||||
Housing Revenue | ||||||||
(Walker Highview Hills Project) Series A 144A 5.00% 8/1/36 # | 480,000 | 506,170 | ||||||
Duluth Economic Development Authority | ||||||||
(Essentia Health Obligated Group) | ||||||||
Series A 5.00% 2/15/37 | 750,000 | 945,765 | ||||||
Series A 5.00% 2/15/48 | 390,000 | 482,305 | ||||||
(St. Luke’s Hospital of Duluth Obligated Group) 5.75% 6/15/32 | 750,000 | 817,883 | ||||||
Glencoe Health Care Facilities Revenue | ||||||||
(Glencoe Regional Health Services Project) 4.00% 4/1/26 | 270,000 | 283,095 | ||||||
Hayward Health Care Facilities Revenue | ||||||||
(American Baptist Homes Midwest Obligated Group) 4.25% 8/1/24 | 518,334 | 539,461 | ||||||
Maple Grove Health Care Facilities Revenue | ||||||||
(Maple Grove Hospital Corporation) | ||||||||
4.00% 5/1/37 | 500,000 | 564,500 | ||||||
5.00% 5/1/28 | 1,000,000 | 1,243,570 | ||||||
(North Memorial Health Care) 5.00% 9/1/31 | 320,000 | 378,867 | ||||||
Minneapolis Health Care System Revenue | ||||||||
(Fairview Health Services) | ||||||||
Series A 5.00% 11/15/33 | 500,000 | 601,215 | ||||||
Series A 5.00% 11/15/34 | 500,000 | 600,460 | ||||||
Series A 5.00% 11/15/49 | 1,000,000 | 1,231,520 | ||||||
Minneapolis Senior Housing & Healthcare Revenue | ||||||||
(Ecumen-Abiitan Mill City Project) 5.00% 11/1/35 | 530,000 | 561,392 | ||||||
Minneapolis – St. Paul Housing & Redevelopment Authority | ||||||||
Health Care Facilities Revenue | ||||||||
(Allina Health System) Series A 5.00% 11/15/27 | 1,205,000 | 1,524,807 |
24
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Rochester Health Care Facilities Revenue | ||||||||
(Mayo Clinic) Series C 4.50% 11/15/38 • | 925,000 | $ | 981,851 | |||||
(Olmsted Medical Center Project) 5.125% 7/1/20 | 220,000 | 223,069 | ||||||
Sartell Health Care Facilities Revenue | ||||||||
(Country Manor Campus Project) Series A 5.00% 9/1/21 | 1,050,000 | 1,107,477 | ||||||
Sauk Rapids Health Care Housing Facilities Revenue | ||||||||
(Good Shepherd Lutheran Home) 5.125% 1/1/39 | 575,000 | 601,973 | ||||||
St. Cloud Health Care Revenue | ||||||||
(Centracare Health System Project) | ||||||||
5.00% 5/1/48 | 810,000 | 1,018,988 | ||||||
Unrefunded Balance 5.125% 5/1/30 | 360,000 | 362,347 | ||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(Fairview Health Services) Series A 5.00% 11/15/47 | 275,000 | 334,713 | ||||||
(HealthPartners Obligated Group Project) | ||||||||
5.00% 7/1/32 | 1,000,000 | 1,170,050 | ||||||
5.00% 7/1/33 | 200,000 | 233,114 | ||||||
St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue | ||||||||
(Episcopal Homes Project) 5.00% 5/1/33 | 500,000 | 526,065 | ||||||
Wayzata Senior Housing Revenue | ||||||||
(Folkestone Senior Living Community) | ||||||||
5.00% 8/1/34 | 125,000 | 142,303 | ||||||
5.00% 8/1/35 | 150,000 | 170,490 | ||||||
West St. Paul, Housing and Health Care Facilities Revenue | ||||||||
(Walker Westwood Ridge Campus Project) 5.00% 11/1/37 | 500,000 | 543,005 | ||||||
Woodbury Housing & Redevelopment Authority Revenue | ||||||||
(St. Therese of Woodbury) 5.00% 12/1/34 | 500,000 | 539,075 | ||||||
|
| |||||||
21,257,748 | ||||||||
|
| |||||||
Housing Revenue Bond – 0.37% | ||||||||
Northwest Multi-County Housing & Redevelopment Authority | ||||||||
(Pooled Housing Program) 5.50% 7/1/45 | 285,000 | 306,298 | ||||||
|
| |||||||
306,298 | ||||||||
|
| |||||||
Lease Revenue Bonds – 5.93% | ||||||||
Minnesota General Fund Revenue Appropriations | ||||||||
Series A 5.00% 6/1/38 | 1,100,000 | 1,235,564 | ||||||
Series A 5.00% 6/1/43 | 715,000 | 799,956 | ||||||
Series B 5.00% 3/1/27 | 1,000,000 | 1,082,760 | ||||||
Minnesota Housing Finance Agency State Appropriation | ||||||||
(Housing Infrastructure) Series A 4.00% 8/1/33 | 655,000 | 793,415 |
25
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Lease Revenue Bonds(continued) | ||||||||
St. Paul Housing & Redevelopment Authority | ||||||||
(Minnesota Public Radio Project) 5.00% 12/1/25 | 1,000,000 | $ | 1,027,300 | |||||
|
| |||||||
4,938,995 | ||||||||
|
| |||||||
Local General Obligation Bonds – 12.82% | ||||||||
Duluth Independent School District No. 709 | ||||||||
Series A 4.00% 2/1/28 | 250,000 | 284,463 | ||||||
Hennepin County | ||||||||
Series A 5.00% 12/1/36 | 1,500,000 | 1,875,060 | ||||||
Series A 5.00% 12/1/38 | 1,055,000 | 1,346,507 | ||||||
Series C 5.00% 12/1/30 | 1,500,000 | 1,893,330 | ||||||
Minneapolis Special School District No. 1 | ||||||||
Series A 4.00% 2/1/36 | 220,000 | 263,822 | ||||||
Series B 4.00% 2/1/36 | 465,000 | 557,623 | ||||||
St. Michael-Albertville Independent School District No. 885 | ||||||||
(School Building) Series A 5.00% 2/1/27 | 500,000 | 616,620 | ||||||
Virginia, Minnesota | ||||||||
(General Obligation Sales Tax Revenue) Series A | ||||||||
4.00% 2/1/38 (AGM) | 1,000,000 | 1,156,740 | ||||||
White Bear Lake Independent School District No. 624 | ||||||||
Series A 3.00% 2/1/43 | 2,500,000 | 2,681,150 | ||||||
|
| |||||||
10,675,315 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 8.65% | ||||||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(Children’s Health Care) Series A 5.25%8/15/25-20§ | 1,000,000 | 1,019,850 | ||||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(College of St. Benedict) Series7-M 5.125%3/1/36-20§ | 275,000 | 275,000 | ||||||
(St. Catherine University) Series7-Q 5.00% 10/1/22 | 425,000 | 468,953 | ||||||
St. Cloud Health Care Revenue | ||||||||
(Centracare Health System Project) | ||||||||
Series A 5.125%5/1/30-20§ | 500,000 | 503,495 | ||||||
St. Paul Housing & Redevelopment Authority Hospital Revenue | ||||||||
(Healtheast Care System Project) | ||||||||
Series A 5.00%11/15/29-25§ | 165,000 | 203,019 | ||||||
Series A 5.00%11/15/30-25§ | 120,000 | 147,650 | ||||||
University of Minnesota | ||||||||
Series A 5.00%12/1/23-20§ | 1,000,000 | 1,031,330 | ||||||
Series A 5.25%12/1/29-20§ | 1,000,000 | 1,033,180 | ||||||
Series D 5.00%12/1/26-21§ | 1,000,000 | 1,073,140 |
26
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
Western Minnesota Municipal Power Agency Revenue | ||||||||
Series A 5.00%1/1/33-24§ | 1,250,000 | $ | 1,450,587 | |||||
|
| |||||||
7,206,204 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 3.70% | ||||||||
Minneapolis Revenue | ||||||||
(YMCA Greater Twin Cities Project) 4.00% 6/1/27 | 100,000 | 114,061 | ||||||
Puerto Rico Sales Tax Financing Revenue (Restructured) | ||||||||
Series A1 4.55% 7/1/40 | 830,000 | 935,966 | ||||||
SeriesA-1 4.75% 7/1/53 | 810,000 | 917,017 | ||||||
SeriesA-1 5.00% 7/1/58 | 195,000 | 223,640 | ||||||
SeriesA-2 4.536% 7/1/53 | 378,000 | 421,995 | ||||||
St. Paul Sales Tax Revenue | ||||||||
Series G 5.00% 11/1/28 | 400,000 | 472,440 | ||||||
|
| |||||||
3,085,119 | ||||||||
|
| |||||||
State General Obligation Bonds – 10.67% | ||||||||
Commonwealth of Puerto Rico | ||||||||
(Public Improvement) Series B 5.75% 7/1/38 ‡ | 345,000 | 280,744 | ||||||
Minnesota | ||||||||
Series A 5.00% 8/1/33 | 285,000 | 373,923 | ||||||
Series A 5.00% 8/1/34 | 1,000,000 | 1,309,580 | ||||||
Series A 5.00% 8/1/38 | 1,575,000 | 2,088,607 | ||||||
Series A 5.00% 8/1/39 | 310,000 | 410,133 | ||||||
Series D 5.00% 8/1/26 | 2,500,000 | 3,158,125 | ||||||
Series D 5.00% 8/1/27 | 500,000 | 630,905 | ||||||
Series E 5.00% 10/1/26 | 500,000 | 634,680 | ||||||
|
| |||||||
8,886,697 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 6.16% | ||||||||
Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
(Subordinate) | ||||||||
Series B 5.00% 1/1/26 | 710,000 | 763,875 | ||||||
Series B 5.00% 1/1/31 | 750,000 | 804,495 | ||||||
Series B 5.00% 1/1/44 (AMT) | 1,600,000 | 2,020,400 | ||||||
St. Paul Housing & Redevelopment Authority | ||||||||
(Parking Enterprise) | ||||||||
Series A 4.00% 8/1/26 | 450,000 | 519,089 | ||||||
Series A 4.00% 8/1/27 | 545,000 | 625,262 | ||||||
Series A 4.00% 8/1/28 | 350,000 | 400,169 | ||||||
|
| |||||||
5,133,290 | ||||||||
|
|
27
Table of Contents
Schedules of investments
DelawareTax-Free Minnesota Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Water & Sewer Revenue Bonds – 2.48% | ||||||||
Guam Government Waterworks Authority Water & Wastewater System Revenue 5.00% 7/1/37 | 575,000 | $ | 691,949 | |||||
Metropolitan Council General Obligation Wastewater Revenue (Minneapolis – St. Paul Metropolitan Area) | ||||||||
Series C 4.00% 3/1/31 | 565,000 | 673,858 | ||||||
Series C 4.00% 3/1/32 | 585,000 | 695,811 | ||||||
|
| |||||||
2,061,618 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $76,812,212) | 82,141,090 | |||||||
|
| |||||||
| ||||||||
| ||||||||
Short-Term Investment – 1.34% | ||||||||
| ||||||||
Variable Rate Demand Note – 1.34%¤ | ||||||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue (Allina Health System) SeriesB-2 1.22% 11/15/35 (LOC – JPMorgan Chase Bank N.A.) | 1,115,000 | 1,115,000 | ||||||
|
| |||||||
Total Short-Term Investment(cost $1,115,000) | 1,115,000 | |||||||
|
| |||||||
Total Value of Securities – 99.97% | $ | 83,256,090 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $1,483,757, which represents 1.78% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Feb. 29, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on |
28
Table of Contents
current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LOC – Letter of Credit
N.A. – National Association
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
29
Table of Contents
Schedules of investments | ||
Delaware Minnesota High-Yield Municipal Bond Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 96.80% | ||||||||
| ||||||||
Corporate Revenue Bond – 1.21% | ||||||||
St. Paul Port Authority Solid Waste Disposal Revenue | ||||||||
(Gerdau St. Paul Steel Mill Project) | ||||||||
Series 7 144A 4.50% 10/1/37 (AMT)# | 2,600,000 | $ | 2,708,472 | |||||
|
| |||||||
2,708,472 | ||||||||
|
| |||||||
Education Revenue Bonds – 18.34% | ||||||||
Bethel Charter School Lease Revenue | ||||||||
(Spectrum High School Project) Series A 4.00% 7/1/37 | 850,000 | 920,465 | ||||||
Brooklyn Park Charter School Lease Revenue | ||||||||
(Prairie Seeds Academy Project) Series A 5.00% 3/1/39 | 1,270,000 | 1,324,648 | ||||||
Cologne Charter School Lease Revenue | ||||||||
(Cologne Academy Project) | ||||||||
Series A 5.00% 7/1/34 | 250,000 | 272,580 | ||||||
Series A 5.00% 7/1/45 | 230,000 | 247,563 | ||||||
Columbia Heights Charter School Lease Revenue | ||||||||
(Prodeo Academy Project) Series A 5.00% 7/1/54 | 1,000,000 | 1,062,350 | ||||||
Deephaven Charter School Lease Revenue | ||||||||
(Eagle Ridge Academy Project) Series A 5.50% 7/1/50 | 1,000,000 | 1,111,180 | ||||||
Duluth Housing & Redevelopment Authority Revenue | ||||||||
(Duluth Public Schools Academy Project) Series A 5.00% 11/1/48 | 1,000,000 | 1,125,940 | ||||||
Forest Lake Charter School Lease Revenue Fund | ||||||||
(Lakes International Language Academy) | ||||||||
Series A 5.375% 8/1/50 | 660,000 | 758,307 | ||||||
Series A 5.75% 8/1/44 | 585,000 | 632,596 | ||||||
Ham Lake Charter School Lease Revenue | ||||||||
(Davinci Academy Project) | ||||||||
Series A 5.00% 7/1/36 | 235,000 | 254,263 | ||||||
Series A 5.00% 7/1/47 | 710,000 | 761,049 | ||||||
(Parnassus Preparatory School Project) Series A 5.00% 11/1/47 | 650,000 | 713,121 | ||||||
Hugo Charter School Lease Revenue | ||||||||
(Noble Academy Project) | ||||||||
Series A 5.00% 7/1/34 | 165,000 | 178,223 | ||||||
Series A 5.00% 7/1/44 | 495,000 | 527,833 | ||||||
Minneapolis Charter School Lease Revenue | ||||||||
(Hiawatha Academies Project) | ||||||||
Series A 5.00% 7/1/36 | 1,000,000 | 1,094,290 | ||||||
Series A 5.00% 7/1/47 | 800,000 | 867,264 | ||||||
Minneapolis Student Housing Revenue | ||||||||
(Riverton Community Housing Project) 144A 4.75% 8/1/43 # | 750,000 | 815,355 | ||||||
144A 5.00% 8/1/53 # | 570,000 | 627,257 |
30
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
Minneapolis Student Housing Revenue | ||||||||
(Riverton Community Housing Project) 5.25% 8/1/39 | 800,000 | $ | 868,664 | |||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(Bethel University) 5.00% 5/1/47 | 1,500,000 | 1,749,600 | ||||||
(Carleton College) 4.00% 3/1/37 | 635,000 | 738,880 | ||||||
(Gustavus Adolphus College) 5.00% 10/1/47 | 1,000,000 | 1,207,050 | ||||||
(Minneapolis College of Art & Design) | ||||||||
4.00% 5/1/24 | 250,000 | 268,320 | ||||||
4.00% 5/1/25 | 200,000 | 214,260 | ||||||
4.00% 5/1/26 | 100,000 | 106,982 | ||||||
(St. Catherine University) | ||||||||
Series A 4.00% 10/1/37 | 580,000 | 662,963 | ||||||
Series A 5.00% 10/1/45 | 670,000 | 821,929 | ||||||
(St. John’s University) Series8-I 5.00% 10/1/34 | 215,000 | 255,308 | ||||||
(St. Olaf College) | ||||||||
Series8-G 5.00% 12/1/31 | 205,000 | 247,285 | ||||||
Series8-G 5.00% 12/1/32 | 205,000 | 247,031 | ||||||
Series8-N 4.00% 10/1/34 | 800,000 | 922,384 | ||||||
Series8-N 4.00% 10/1/35 | 590,000 | 679,940 | ||||||
(Trustees of the Hamline University of Minnesota) | ||||||||
Series B 5.00% 10/1/37 | 300,000 | 351,903 | ||||||
Series B 5.00% 10/1/39 | 770,000 | 899,760 | ||||||
(University of St. Thomas) | ||||||||
4.00% 10/1/37 | 500,000 | 600,080 | ||||||
4.00% 10/1/41 | 1,000,000 | 1,187,370 | ||||||
4.00% 10/1/44 | 850,000 | 997,594 | ||||||
Series A 4.00% 10/1/35 | 400,000 | 463,516 | ||||||
Otsego Charter School Lease Revenue | ||||||||
(Kaleidoscope Charter School) Series A 5.00% 9/1/44 | 1,435,000 | 1,515,245 | ||||||
Rice County Educational Facilities Revenue | ||||||||
(Shattuck-St. Mary’s School) Series A 144A 5.00% 8/1/22 # | 770,000 | 811,226 | ||||||
St. Cloud Charter School Lease Revenue | ||||||||
(Stride Academy Project) Series A 5.00% 4/1/46 | 750,000 | 514,650 | ||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 | 1,750,000 | 1,841,070 | ||||||
(Great River School Project) Series A 144A 5.50% 7/1/52 # | 265,000 | 292,139 |
31
Table of Contents
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Hmong College Preparatory Academy Project) | ||||||||
Series A 5.75% 9/1/46 | 500,000 | $ | 576,130 | |||||
Series A 6.00% 9/1/51 | 500,000 | 581,830 | ||||||
(Nova Classical Academy Project) | ||||||||
Series A 4.00% 9/1/36 | 1,270,000 | 1,366,418 | ||||||
Series A 4.125% 9/1/47 | 500,000 | 534,070 | ||||||
(Twin Cities Academy Project) Series A 5.375% 7/1/50 | 1,500,000 | 1,648,545 | ||||||
University of Minnesota | ||||||||
Series A 5.00% 4/1/34 | 2,115,000 | 2,592,609 | ||||||
Series A 5.00% 9/1/40 | 900,000 | 1,129,779 | ||||||
Series A 5.00% 9/1/41 | 620,000 | 776,637 | ||||||
|
| |||||||
40,965,451 | ||||||||
|
| |||||||
Electric Revenue Bonds – 5.61% | ||||||||
Central Minnesota Municipal Power Agency | ||||||||
(Brookings Twin Cities Transmission Project) | ||||||||
5.00% 1/1/42 | 1,500,000 | 1,603,890 | ||||||
Chaska Electric Revenue | ||||||||
Series A 5.00% 10/1/28 | 350,000 | 423,045 | ||||||
Hutchinson Utilities Commission Revenue | ||||||||
Series A 5.00% 12/1/22 | 490,000 | 545,184 | ||||||
Series A 5.00% 12/1/26 | 360,000 | 399,089 | ||||||
Minnesota Municipal Power Agency Electric Revenue | ||||||||
5.00% 10/1/27 | 165,000 | 194,284 | ||||||
5.00% 10/1/47 | 745,000 | 898,038 | ||||||
Series A 5.00% 10/1/28 | 500,000 | 588,320 | ||||||
Northern Municipal Power Agency Electric System Revenue | ||||||||
5.00% 1/1/26 | 500,000 | 611,965 | ||||||
5.00% 1/1/28 | 500,000 | 606,765 | ||||||
5.00% 1/1/29 | 470,000 | 568,493 | ||||||
5.00% 1/1/33 | 225,000 | 274,482 | ||||||
5.00% 1/1/34 | 200,000 | 243,572 | ||||||
Series A 5.00% 1/1/24 | 335,000 | 372,564 | ||||||
Puerto Rico Electric Power Authority | ||||||||
Series A 5.05% 7/1/42 ‡ | 165,000 | 131,794 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 95,000 | 76,119 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 650,000 | 520,813 | ||||||
Series WW 5.00% 7/1/28 ‡ | 585,000 | 467,269 | ||||||
Series XX 4.75% 7/1/26 ‡ | 105,000 | 83,344 | ||||||
Series XX 5.25% 7/1/40 ‡ | 295,000 | 236,369 |
32
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Electric Revenue Bonds(continued) | ||||||||
Puerto Rico Electric Power Authority | ||||||||
Series XX 5.75% 7/1/36 ‡ | 370,000 | $ | 298,313 | |||||
Series ZZ 4.75% 7/1/27 ‡ | 85,000 | 67,469 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 130,000 | 104,163 | ||||||
Rochester Electric Utility Revenue | ||||||||
Series A 5.00% 12/1/34 | 450,000 | 556,223 | ||||||
Series A 5.00% 12/1/35 | 500,000 | 616,970 | ||||||
Series A 5.00% 12/1/36 | 520,000 | 640,526 | ||||||
Southern Minnesota Municipal Power Agency Revenue | ||||||||
Series A 5.00% 1/1/41 | 400,000 | 475,616 | ||||||
St. Paul Housing & Redevelopment Energy Revenue | ||||||||
Series A 4.00% 10/1/32 | 800,000 | 916,200 | ||||||
|
| |||||||
12,520,879 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 32.35% | ||||||||
Anoka Healthcare & Housing Facilities Revenue | ||||||||
(The Homestead at Anoka Project) 5.125% 11/1/49 | 400,000 | 427,536 | ||||||
Anoka Housing & Redevelopment Authority Revenue | ||||||||
(Fridley Medical Center Project) Series A 6.875% 5/1/40 | 1,000,000 | 1,005,130 | ||||||
Apple Valley Senior Housing Revenue | ||||||||
(PHS Senior Housing, Inc. Orchard Path Project) | ||||||||
4.50% 9/1/53 | 840,000 | 887,132 | ||||||
5.00% 9/1/43 | 535,000 | 582,128 | ||||||
5.00% 9/1/58 | 1,175,000 | 1,272,361 | ||||||
Apple Valley Senior Living Revenue | ||||||||
(Senior Living LLC Project) | ||||||||
2nd Tier Series B 5.00% 1/1/47 | 560,000 | 459,435 | ||||||
4th Tier Series D 7.00% 1/1/37 | 515,000 | 505,957 | ||||||
4th Tier Series D 7.25% 1/1/52 | 1,500,000 | 1,470,585 | ||||||
Bethel Housing & Health Care Facilities Revenue | ||||||||
(Benedictine Health System - St. Peter Communities Project) Series A 5.50% 12/1/48 | 1,280,000 | 1,376,730 | ||||||
Bethel Senior Housing Revenue | ||||||||
(The Lodge at the Lakes at Stillwater Project) 5.25% 6/1/58 | 725,000 | 774,887 | ||||||
Brooklyn Center Multifamily Housing Revenue | ||||||||
(Sanctuary at Brooklyn Center Project) Series A 5.50% 11/1/35 | 645,000 | 676,547 | ||||||
Chatfield Healthcare and Housing Facilities Revenue | ||||||||
(Chosen Valley Care Center Project) | ||||||||
4.00% 9/1/39 | 250,000 | 255,607 | ||||||
5.00% 9/1/52 | 1,500,000 | 1,629,855 |
33
Table of Contents
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
City of West St. Paul Minnesota | ||||||||
(Walker Westwood Ridge Campus Project) | ||||||||
5.00% 11/1/49 | 1,500,000 | $ | 1,612,980 | |||||
Cloquet Housing Facilities | ||||||||
(HADC Cloquet Project) Series A 5.00% 8/1/48 | 850,000 | 866,787 | ||||||
Crookston Health Care Facilities Revenue | ||||||||
(Riverview Health Project) 5.00% 5/1/51 | 1,025,000 | 1,168,182 | ||||||
Dakota County Community Development Agency Senior Housing Revenue | ||||||||
(Walker Highview Hills Project) Series A 144A 5.00% 8/1/51 # | 870,000 | 909,124 | ||||||
Deephaven Housing & Healthcare Revenue | ||||||||
(St. Therese Senior Living Project) | ||||||||
Series A 5.00% 4/1/38 | 335,000 | 345,579 | ||||||
Series A 5.00% 4/1/40 | 315,000 | 324,856 | ||||||
Series A 5.00% 4/1/48 | 185,000 | 190,409 | ||||||
Duluth Economic Development Authority | ||||||||
(Essentia Health Obligated Group) | ||||||||
Series A 4.25% 2/15/43 | 2,500,000 | 2,888,600 | ||||||
Series A 5.00% 2/15/48 | 1,590,000 | 1,966,321 | ||||||
(St. Luke’s Hospital of Duluth Obligated Group) | ||||||||
5.75% 6/15/32 | 750,000 | 817,883 | ||||||
6.00% 6/15/39 | 1,000,000 | 1,099,370 | ||||||
Glencoe Health Care Facilities Revenue | ||||||||
(Glencoe Regional Health Services Project) 4.00% 4/1/31 | 185,000 | 193,186 | ||||||
Hayward Health Care Facilities Revenue | ||||||||
(American Baptist Homes Midwest Obligated Group) 5.375% 8/1/34 | 750,000 | 794,723 | ||||||
(St. John’s Lutheran Home of Albert Lea Project) 5.375% 10/1/44 | 165,000 | 174,187 | ||||||
Maple Grove Health Care Facilities Revenue | ||||||||
(Maple Grove Hospital Corporation) | ||||||||
4.00% 5/1/37 | 1,155,000 | 1,303,995 | ||||||
5.00% 5/1/26 | 1,300,000 | 1,591,616 | ||||||
5.00% 5/1/29 | 500,000 | 620,055 | ||||||
(North Memorial Health Care) 5.00% 9/1/30 | 610,000 | 724,363 | ||||||
Maple Plain Senior Housing & Health Care Revenue | ||||||||
(Haven Homes Incorporate Project) 5.00% 7/1/49 | 1,000,000 | 1,090,960 | ||||||
Minneapolis Health Care System Revenue | ||||||||
(Fairview Health Services) | ||||||||
Series A 4.00% 11/15/48 | 1,000,000 | 1,146,560 | ||||||
Series A 5.00% 11/15/33 | 1,200,000 | 1,442,916 |
34
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Minneapolis Health Care System Revenue | ||||||||
(Fairview Health Services) | ||||||||
Series A 5.00% 11/15/34 | 500,000 | $ | 600,460 | |||||
Series A 5.00% 11/15/44 | 1,000,000 | 1,177,830 | ||||||
Series A 5.00% 11/15/49 | 1,450,000 | 1,785,704 | ||||||
Minneapolis Senior Housing & Healthcare Revenue (Ecumen-Abiitan Mill City Project) 5.375% 11/1/50 | 1,700,000 | 1,800,266 | ||||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(Allina Health System) Series A 5.00% 11/15/29 | 415,000 | 521,784 | ||||||
Morris Health Care Facilities Revenue | ||||||||
(Farmington Health Services) | ||||||||
4.10% 8/1/44 | 500,000 | 522,435 | ||||||
4.20% 8/1/49 | 1,500,000 | 1,569,390 | ||||||
Oakdale Senior Housing | ||||||||
(Oak Meadows Project) 5.00% 4/1/34 | 500,000 | 508,115 | ||||||
Rochester Health Care & Housing Revenue | ||||||||
(The Homestead at Rochester Project) | ||||||||
Series A 5.25% 12/1/23 | 175,000 | 188,004 | ||||||
Series A 6.875% 12/1/48 | 800,000 | 878,888 | ||||||
Rochester Health Care Facilities Revenue | ||||||||
(Mayo Clinic) 4.00% 11/15/41 | 1,790,000 | 1,896,469 | ||||||
(Olmsted Medical Center Project) | ||||||||
5.00% 7/1/22 | 350,000 | 381,713 | ||||||
5.00% 7/1/27 | 245,000 | 274,586 | ||||||
5.00% 7/1/28 | 225,000 | 251,545 | ||||||
Sartell Health Care Facilities Revenue | ||||||||
(Country Manor Campus Project) Series A 5.25% 9/1/22 | 1,080,000 | 1,181,574 | ||||||
Sauk Rapids Health Care Housing Facilities Revenue | ||||||||
(Good Shepherd Lutheran Home) 5.125% 1/1/39 | 825,000 | 863,701 | ||||||
Shakopee Health Care Facilities Revenue | ||||||||
(St. Francis Regional Medical Center) | ||||||||
4.00% 9/1/31 | 130,000 | 141,769 | ||||||
5.00% 9/1/34 | 105,000 | 119,283 | ||||||
St. Cloud Health Care Revenue | ||||||||
(Centracare Health System Project) | ||||||||
4.00% 5/1/49 | 250,000 | 287,973 | ||||||
5.00% 5/1/48 | 3,900,000 | 4,906,239 | ||||||
Unrefunded Balance 5.125% 5/1/30 | 15,000 | 15,098 | ||||||
Series A 4.00% 5/1/37 | 1,440,000 | 1,623,629 | ||||||
Series A 5.00% 5/1/46 | 2,000,000 | 2,379,760 |
35
Table of Contents
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
St. Joseph Senior Housing & Healthcare Revenue | ||||||||
(Woodcrest Country Manor Project) 5.00% 7/1/55 | 1,000,000 | $ | 1,076,500 | |||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
(Fairview Health Services) | ||||||||
Series A 4.00% 11/15/43 | 645,000 | 735,771 | ||||||
Series A 5.00% 11/15/47 | 485,000 | 590,313 | ||||||
(HealthPartners Obligated Group Project) | ||||||||
Series A 4.00% 7/1/33 | 1,320,000 | 1,465,966 | ||||||
Series A 5.00% 7/1/29 | 1,000,000 | 1,187,160 | ||||||
Series A 5.00% 7/1/32 | 900,000 | 1,053,045 | ||||||
Series A 5.00% 7/1/33 | 1,540,000 | 1,794,978 | ||||||
St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue | ||||||||
(Episcopal Homes Project) | ||||||||
5.125% 5/1/48 | 1,700,000 | 1,762,305 | ||||||
Series A 5.15% 11/1/42 | 775,000 | 780,665 | ||||||
St. Paul Housing & Redevelopment Authority Multifamily Housing Revenue | ||||||||
(Marian Center Project) Series A 5.375% 5/1/43 | 1,000,000 | 1,000,540 | ||||||
Victoria Health Care Facilities Revenue | ||||||||
(Augustana Emerald Care Project) 5.00% 8/1/39 | 1,500,000 | 1,540,485 | ||||||
Wayzata Senior Housing Revenue | ||||||||
(Folkestone Senior Living Community) | ||||||||
4.00% 8/1/39 | 400,000 | 430,852 | ||||||
4.00% 8/1/38 | 250,000 | 269,718 | ||||||
4.00% 8/1/44 | 350,000 | 374,864 | ||||||
5.00% 8/1/54 | 350,000 | 392,126 | ||||||
Woodbury Housing & Redevelopment Authority Revenue | ||||||||
(St. Therese of Woodbury) 5.25% 12/1/49 | 1,250,000 | 1,343,100 | ||||||
|
| |||||||
72,271,145 | ||||||||
|
| |||||||
Housing Revenue Bonds – 1.48% | ||||||||
Bethel Senior Housing Revenue | ||||||||
(Birchwood Landing at the Lakes at Stillwater Project) 5.00% 5/1/54 | 1,000,000 | 1,068,840 | ||||||
Minneapolis – St. Paul Housing Finance Board Single | ||||||||
Family Mortgage-Backed Securities Program | ||||||||
(City Living Project) SeriesA-2 5.00% 12/1/38 (GNMA) (FNMA) (FHLMC) (AMT) | 7,677 | 7,683 | ||||||
Minnesota Housing Finance Agency State Appropriation | ||||||||
(Housing Infrastructure) Series C 5.00% 8/1/33 | 100,000 | 116,688 |
36
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Housing Revenue Bonds(continued) | ||||||||
Northwest Multi-County Housing & Redevelopment Authority | ||||||||
(Pooled Housing Program) 5.50% 7/1/45 | 1,275,000 | $ | 1,370,281 | |||||
Stillwater Multifamily Housing Revenue | ||||||||
(Orleans Homes Project) 5.50% 2/1/42 (AMT) | 750,000 | 750,855 | ||||||
|
| |||||||
3,314,347 | ||||||||
|
| |||||||
Lease Revenue Bonds – 2.12% | ||||||||
Minnesota General Fund Revenue Appropriations | ||||||||
Series A 5.00% 6/1/38 | 1,750,000 | 1,965,670 | ||||||
Series A 5.00% 6/1/43 | 1,000,000 | 1,118,820 | ||||||
Minnesota Housing Finance Agency State Appropriation | ||||||||
(Housing Infrastructure) Series C 5.00% 8/1/32 | 1,415,000 | 1,653,130 | ||||||
|
| |||||||
4,737,620 | ||||||||
|
| |||||||
Local General Obligation Bonds – 7.23% | ||||||||
Chaska Independent School District No. 112 | ||||||||
(School Building) Series A 5.00% 2/1/28 | 1,000,000 | 1,230,300 | ||||||
Duluth General Obligation Entertainment Convention Center Improvement | ||||||||
Series A 5.00% 2/1/34 | 1,000,000 | 1,216,270 | ||||||
Duluth Independent School District No. 709 | ||||||||
Series A 4.00% 2/1/27 | 440,000 | 501,600 | ||||||
Series A 4.20% 3/1/34 | 750,000 | 818,767 | ||||||
Hennepin County | ||||||||
Series A 5.00% 12/1/26 | 750,000 | 957,697 | ||||||
Series A 5.00% 12/1/37 | 910,000 | 1,164,072 | ||||||
Series C 5.00% 12/1/37 | 2,500,000 | 3,116,975 | ||||||
Mahtomedi Independent School District No. 832 | ||||||||
(School Building) | ||||||||
Series A 5.00% 2/1/28 | 1,000,000 | 1,200,670 | ||||||
Series A 5.00% 2/1/29 | 1,000,000 | 1,199,070 | ||||||
Series A 5.00% 2/1/30 | 445,000 | 532,874 | ||||||
Series A 5.00% 2/1/31 | 1,000,000 | 1,194,280 | ||||||
Minneapolis Special School District No. 1 | ||||||||
Series A 4.00% 2/1/36 | 160,000 | 191,870 | ||||||
Series A 4.00% 2/1/37 | 215,000 | 257,245 | ||||||
Series A 4.00% 2/1/38 | 220,000 | 262,275 | ||||||
Series B 4.00% 2/1/36 | 335,000 | 401,729 | ||||||
Series B 4.00% 2/1/37 | 445,000 | 532,438 | ||||||
Series B 4.00% 2/1/38 | 465,000 | 554,354 | ||||||
Wayzata Independent School District No. 284 | ||||||||
(School Building) Series A 5.00% 2/1/28 | 650,000 | 829,159 | ||||||
|
| |||||||
16,161,645 | ||||||||
|
|
37
Table of Contents
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds – 3.70% | ||||||||
Deephaven Charter School Lease Revenue | ||||||||
(Eagle Ridge Academy Project) Series A 5.50%7/1/43-23§ | 500,000 | $ | 576,300 | |||||
Minnesota Higher Education Facilities Authority Revenue | ||||||||
(St. Catherine University) | ||||||||
Series7-Q 5.00%10/1/25-22§ | 325,000 | 358,611 | ||||||
Series7-Q 5.00%10/1/26-22§ | 280,000 | 308,958 | ||||||
Oak Park Heights Housing Revenue | ||||||||
(Oakgreen Commons Project) 7.00%8/1/45-20§ | 500,000 | 512,420 | ||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Nova Classical Academy Project) Series A 6.625%9/1/42-21§ | 1,500,000 | 1,628,595 | ||||||
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue | ||||||||
(Healtheast Care System Project) | ||||||||
Series A 5.00%11/15/29-25§ | 275,000 | 338,365 | ||||||
Series A 5.00%11/15/30-25§ | 205,000 | 252,236 | ||||||
Western Minnesota Municipal Power Agency Revenue | ||||||||
Series A 5.00%1/1/30-24§ | 500,000 | 580,235 | ||||||
Series A 5.00%1/1/33-24§ | 750,000 | 870,353 | ||||||
Series A 5.00%1/1/34-24§ | 450,000 | 522,212 | ||||||
Series A 5.00%1/1/40-24§ | 2,000,000 | 2,320,940 | ||||||
|
| |||||||
8,269,225 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 4.95% | ||||||||
Minneapolis Revenue | ||||||||
(YMCA Greater Twin Cities Project) 4.00% 6/1/31 | 250,000 | 281,027 | ||||||
Minneapolis Tax Increment Revenue | ||||||||
(Grant Park Project) 4.00% 3/1/27 | 200,000 | 209,428 | ||||||
4.00% 3/1/30 | 260,000 | 271,185 | ||||||
(Village of St. Anthony Falls Project) 4.00% 3/1/24 | 700,000 | 728,672 | ||||||
4.00% 3/1/27 | 650,000 | 666,607 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 4,005,000 | 4,534,141 | ||||||
SeriesA-1 5.00% 7/1/58 | 275,000 | 315,389 | ||||||
SeriesA-2 4.536% 7/1/53 | 3,000,000 | 3,349,170 | ||||||
St. Paul Sales Tax Revenue | ||||||||
Series G 5.00% 11/1/28 | 600,000 | 708,660 | ||||||
|
| |||||||
11,064,279 | ||||||||
|
|
38
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
State General Obligation Bonds – 12.71% | ||||||||
Commonwealth of Puerto Rico | ||||||||
(Public Improvement) Series B 5.75% 7/1/38 ‡ | 920,000 | $ | 748,650 | |||||
Minnesota | ||||||||
Series A 5.00% 8/1/27 | 750,000 | 916,627 | ||||||
Series A 5.00% 8/1/29 | 1,000,000 | 1,219,210 | ||||||
Series A 5.00% 8/1/33 | 660,000 | 865,927 | ||||||
Series A 5.00% 10/1/33 | 2,000,000 | 2,570,680 | ||||||
Series A 5.00% 8/1/34 | 2,185,000 | 2,861,432 | ||||||
Series A 5.00% 8/1/38 | 5,250,000 | 6,932,935 | ||||||
Series A 5.00% 8/1/39 | 2,880,000 | 3,810,269 | ||||||
Series A Unrefunded Balance 5.00% 10/1/24 | 985,000 | 1,050,384 | ||||||
Series D 5.00% 8/1/26 | 1,000,000 | 1,263,250 | ||||||
Series D 5.00% 8/1/27 | 2,000,000 | 2,523,620 | ||||||
Series E 5.00% 10/1/26 | 1,085,000 | 1,377,256 | ||||||
(Various Purposes) Series A 5.00% 8/1/32 | 1,915,000 | 2,242,695 | ||||||
|
| |||||||
28,382,935 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 6.05% | ||||||||
Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
(Senior) | ||||||||
Series A 5.00% 1/1/32 | 1,245,000 | 1,560,035 | ||||||
Series C 5.00% 1/1/46 | 185,000 | 226,177 | ||||||
(Subordinate) | ||||||||
Series A 5.00% 1/1/32 | 500,000 | 572,845 | ||||||
Series A 5.00% 1/1/49 | 1,500,000 | 1,925,850 | ||||||
Series B 5.00% 1/1/29 | 2,130,000 | 2,288,387 | ||||||
Series B 5.00% 1/1/44 (AMT) | 4,000,000 | 5,051,000 | ||||||
Series B 5.00% 1/1/49 (AMT) | 1,500,000 | 1,881,705 | ||||||
|
| |||||||
13,505,999 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 1.05% | ||||||||
Metropolitan Council General Obligation Wastewater Revenue (Minneapolis – St. Paul Metropolitan Area) | ||||||||
Series C 4.00% 3/1/31 | 965,000 | 1,150,927 | ||||||
Series C 4.00% 3/1/32 | 1,000,000 | 1,189,420 | ||||||
|
| |||||||
2,340,347 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $201,789,446) | 216,242,344 | |||||||
|
|
39
Table of Contents
Schedules of investments | ||
Delaware Minnesota High-Yield Municipal Bond Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Short-Term Investments – 1.65% | ||||||||
| ||||||||
Variable Rate Demand Notes – 1.65%¤ | ||||||||
Minneapolis Health Care System Revenue (Fairview Health Services) Series C | ||||||||
1.20% 11/15/48 (LOC – Wells Fargo Bank N.A.) | 100,000 | $ | 100,000 | |||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue (Children’s Hospitals and Clinics) SeriesA-1 | ||||||||
1.13% 8/15/37 (AGM) (SPA – US Bank N.A.) | 240,000 | 240,000 | ||||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue | ||||||||
(Allina Health System) | ||||||||
SeriesB-1 | ||||||||
1.20% 11/15/35 (LOC – JPMorgan Chase Bank N.A.) | 1,650,000 | 1,650,000 | ||||||
SeriesB-2 | ||||||||
1.22% 11/15/35 (LOC – JPMorgan Chase Bank N.A.) | 500,000 | 500,000 | ||||||
Rochester Health Care Facilities Revenue (Mayo Clinic) | ||||||||
Series A 1.14% 11/15/38 | 1,200,000 | 1,200,000 | ||||||
|
| |||||||
Total Short-Term Investments(cost $3,690,000) | 3,690,000 | |||||||
|
| |||||||
Total Value of Securities – 98.45% | $ | 219,932,344 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $6,163,573, which represents 2.76% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
FHLMC – Federal Home Loan Mortgage Corporation collateral
FNMA – Federal National Mortgage Association collateral
40
Table of Contents
Summary of abbreviations (continued):
GNMA – Government National Mortgage Association collateral
LOC – Letter of Credit
N.A. – National Association
SPA –Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
41
Table of Contents
Statements of assets and liabilities | ||
February 29, 2020 (Unaudited) |
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||||||||
Assets: | ||||||||||||
Investments, at value1 | $ | 611,057,116 | $ | 83,256,090 | $ | 219,932,344 | ||||||
Cash | 2,865,010 | 1,714,694 | 1,830,144 | |||||||||
Interest receivable | 6,793,713 | 808,480 | 2,337,790 | |||||||||
Receivable for securities sold | 991,500 | 495,750 | 991,500 | |||||||||
Receivable for fund shares sold | 670,821 | 250,100 | 405,909 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 622,378,160 | 86,525,114 | 225,497,687 | |||||||||
|
|
|
|
|
| |||||||
Liabilities: | ||||||||||||
Payable for securities purchased | 13,486,620 | 3,101,230 | 1,666,169 | |||||||||
Payable for fund shares redeemed | 1,556,560 | 15,906 | 124,409 | |||||||||
Distribution payable | 238,517 | 29,640 | 89,768 | |||||||||
Investment management fees payable to affiliates | 223,528 | 19,143 | 82,849 | |||||||||
Other accrued expenses | 175,833 | 62,050 | 96,752 | |||||||||
Distribution fees payable to affiliates | 98,999 | 11,962 | 38,380 | |||||||||
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 4,122 | 562 | 1,507 | |||||||||
Accounting and administration expenses payable to affiliates | 1,900 | 533 | 896 | |||||||||
Trustees’ fees and expenses payable to affiliates | 1,875 | 254 | 685 | |||||||||
Legal fees payable to affiliates | 870 | 118 | 318 | |||||||||
Reports and statements to shareholders expenses payable to affiliates | 364 | 50 | 133 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 15,789,188 | 3,241,448 | 2,101,866 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 606,588,972 | $ | 83,283,666 | $ | 223,395,821 | ||||||
|
|
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||||
Paid-in capital | $ | 565,571,810 | $ | 77,912,492 | $ | 209,339,555 | ||||||
Total distributable earnings (loss) | 41,017,162 | 5,371,174 | 14,056,266 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 606,588,972 | $ | 83,283,666 | $ | 223,395,821 | ||||||
|
|
|
|
|
|
42
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| ||
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||||||||
Net Asset Value | ||||||||||||
Class A: | ||||||||||||
Net assets | $ | 388,611,310 | $ | 58,520,054 | $ | 109,835,841 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 30,353,684 | 5,145,776 | 9,644,645 | |||||||||
Net asset value per share | $ | 12.80 | $ | 11.37 | $ | 11.39 | ||||||
Sales charge | 4.50 | % | 4.50 | % | 4.50 | % | ||||||
Offering price per share, equal to net asset value per share/(1 – sales charge) | $ | 13.40 | $ | 11.91 | $ | 11.93 | ||||||
Class C: | ||||||||||||
Net assets | $ | 28,909,946 | $ | 6,516,004 | $ | 21,755,287 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 2,250,794 | 571,835 | 1,906,624 | |||||||||
Net asset value per share | $ | 12.84 | $ | 11.39 | $ | 11.41 | ||||||
Institutional Class: | ||||||||||||
Net assets | $ | 189,067,716 | $ | 18,247,608 | $ | 91,804,693 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 14,770,717 | 1,603,997 | 8,063,975 | |||||||||
Net asset value per share | $ | 12.80 | $ | 11.38 | $ | 11.38 | ||||||
| ||||||||||||
1Investments, at cost | $ | 570,098,975 | $ | 77,927,212 | $ | 205,479,446 |
See accompanying notes, which are an integral part of the financial statements.
43
Table of Contents
Statements of operations | ||
Six months ended February 29, 2020 (Unaudited) |
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||||||||
Investment Income: | ||||||||||||
Interest | $ | 9,917,519 | $ | 1,293,015 | $ | 3,672,037 | ||||||
|
|
|
|
|
| |||||||
Expenses: | ||||||||||||
Management fees | 1,588,458 | 198,860 | 575,522 | |||||||||
Distribution expenses — Class A | 475,050 | 69,266 | 130,491 | |||||||||
Distribution expenses — Class C | 144,273 | 33,281 | 104,083 | |||||||||
Dividend disbursing and transfer agent fees and expenses | 174,139 | 24,759 | 70,487 | |||||||||
Accounting and administration expenses | 66,320 | 25,815 | 36,187 | |||||||||
Registration fees | 35,725 | 12,225 | 10,420 | |||||||||
Legal fees | 29,937 | 3,959 | 9,519 | |||||||||
Reports and statements to shareholders expenses | 27,356 | 7,326 | 10,487 | |||||||||
Audit and tax fees | 22,950 | 22,950 | 22,950 | |||||||||
Trustees’ fees and expenses | 14,112 | 1,912 | 4,992 | |||||||||
Custodian fees | 7,096 | 824 | 2,161 | |||||||||
Other | 30,540 | 11,469 | 17,856 | |||||||||
|
|
|
|
|
| |||||||
2,615,956 | 412,646 | 995,155 | ||||||||||
Less expenses waived | (235,904 | ) | (86,478 | ) | (89,325 | ) | ||||||
Less waived distribution expenses — Class A | — | (27,706 | ) | — | ||||||||
Less expenses paid indirectly | (3,708 | ) | (862 | ) | (2,063 | ) | ||||||
|
|
|
|
|
| |||||||
Total operating expenses | 2,376,344 | 297,600 | 903,767 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 7,541,175 | 995,415 | 2,768,270 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain: | ||||||||||||
Net realized gain on investments | 1,824,184 | 141,390 | 631,736 | |||||||||
Net change in unrealized appreciation (depreciation) of investments | 5,631,507 | 760,516 | 2,974,704 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain | 7,455,691 | 901,906 | 3,606,440 | |||||||||
|
|
|
|
|
| |||||||
Net Increase in Net Assets Resulting from Operations | $ | 14,996,866 | $ | 1,897,321 | $ | 6,374,710 | ||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
44
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Table of Contents
Statements of changes in net assets
DelawareTax-Free Minnesota Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 7,541,175 | $ | 16,250,461 | ||||
Net realized gain | 1,824,184 | 422,779 | ||||||
Net change in unrealized appreciation (depreciation) | 5,631,507 | 23,896,388 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 14,996,866 | 40,569,628 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (5,828,662 | ) | (11,013,173 | ) | ||||
Class C | (334,268 | ) | (674,498 | ) | ||||
Institutional Class | (2,929,171 | ) | (4,532,590 | ) | ||||
|
|
|
| |||||
(9,092,101 | ) | (16,220,261 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 12,979,535 | 34,266,180 | ||||||
Class C | 1,366,576 | 3,098,448 | ||||||
Institutional Class | 25,582,243 | 83,152,024 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 5,288,873 | 9,748,901 | ||||||
Class C | 329,374 | 653,678 | ||||||
Institutional Class | 2,133,849 | 3,221,296 | ||||||
|
|
|
| |||||
47,680,450 | 134,140,527 | |||||||
|
|
|
|
46
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (20,130,274 | ) | $ | (63,834,709 | ) | ||
Class C | (2,975,077 | ) | (10,695,643 | ) | ||||
Institutional Class | (9,855,269 | ) | (44,007,882 | ) | ||||
|
|
|
| |||||
(32,960,620 | ) | (118,538,234 | ) | |||||
|
|
|
| |||||
Increase in net assets derived from capital share transactions | 14,719,830 | 15,602,293 | ||||||
|
|
|
| |||||
Net Increase in Net Assets | 20,624,595 | 39,951,660 | ||||||
Net Assets: | ||||||||
Beginning of period | 585,964,377 | 546,012,717 | ||||||
|
|
|
| |||||
End of period | $ | 606,588,972 | $ | 585,964,377 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
47
Table of Contents
Statements of changes in net assets
DelawareTax-Free Minnesota Intermediate Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 995,415 | $ | 2,179,205 | ||||
Net realized gain | 141,390 | 5,373 | ||||||
Net change in unrealized appreciation (depreciation) | 760,516 | 2,996,731 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 1,897,321 | 5,181,309 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (702,449 | ) | (1,593,527 | ) | ||||
Class C | (56,261 | ) | (156,332 | ) | ||||
Institutional Class | (234,651 | ) | (428,375 | ) | ||||
|
|
|
| |||||
(993,361 | ) | (2,178,234 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 4,051,924 | 5,671,277 | ||||||
Class C | 196,804 | 898,626 | ||||||
Institutional Class | 2,120,191 | 8,405,771 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 603,408 | 1,357,246 | ||||||
Class C | 54,125 | 149,449 | ||||||
Institutional Class | 221,615 | 397,172 | ||||||
|
|
|
| |||||
7,248,067 | 16,879,541 | |||||||
|
|
|
|
48
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (2,694,214 | ) | $ | (12,485,742 | ) | ||
Class C | (965,418 | ) | (2,719,349 | ) | ||||
Institutional Class | (2,011,804 | ) | (3,186,459 | ) | ||||
|
|
|
| |||||
(5,671,436 | ) | (18,391,550 | ) | |||||
|
|
|
| |||||
Increase (decrease) in net assets derived from capital share transactions | 1,576,631 | (1,512,009 | ) | |||||
|
|
|
| |||||
Net Increase in Net Assets | 2,480,591 | 1,491,066 | ||||||
Net Assets: | ||||||||
Beginning of period | 80,803,075 | 79,312,009 | ||||||
|
|
|
| |||||
End of period | $ | 83,283,666 | $ | 80,803,075 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
49
Table of Contents
Statements of changes in net assets
Delaware Minnesota High-Yield Municipal Bond Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income | $ | 2,768,270 | $ | 5,310,882 | ||||
Net realized gain (loss) | 631,736 | (149,752 | ) | |||||
Net change in unrealized appreciation (depreciation) | 2,974,704 | 9,364,456 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 6,374,710 | 14,525,586 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (1,364,588 | ) | (2,884,919 | ) | ||||
Class C | (193,963 | ) | (452,855 | ) | ||||
Institutional Class | (1,199,632 | ) | (1,963,896 | ) | ||||
|
|
|
| |||||
(2,758,183 | ) | (5,301,670 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 8,565,092 | 11,808,073 | ||||||
Class C | 3,005,222 | 3,143,949 | ||||||
Institutional Class | 19,215,257 | 31,389,740 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 1,245,884 | 2,586,210 | ||||||
Class C | 184,739 | 420,887 | ||||||
Institutional Class | 1,162,506 | 1,877,843 | ||||||
|
|
|
| |||||
33,378,700 | 51,226,702 | |||||||
|
|
|
|
50
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (5,207,574 | ) | $ | (14,747,115 | ) | ||
Class C | (2,833,482 | ) | (5,154,694 | ) | ||||
Institutional Class | (5,259,006 | ) | (14,980,335 | ) | ||||
|
|
|
| |||||
(13,300,062 | ) | (34,882,144 | ) | |||||
|
|
|
| |||||
Increase in net assets derived from capital share transactions | 20,078,638 | 16,344,558 | ||||||
|
|
|
| |||||
Net Increase in Net Assets | 23,695,165 | 25,568,474 | ||||||
Net Assets: | ||||||||
Beginning of period | 199,700,656 | 174,132,182 | ||||||
|
|
|
| |||||
End of period | $ | 223,395,821 | $ | 199,700,656 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
51
Table of Contents
DelawareTax-Free Minnesota Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
52
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 12.68 | $ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.60 | $ | 12.67 | |||||||||||||||||||||||
0.16 | 0.36 | 0.37 | 0.38 | 0.41 | 0.44 | |||||||||||||||||||||||||||||
0.15 | 0.54 | (0.34 | ) | (0.32 | ) | 0.28 | (0.06 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.31 | 0.90 | 0.03 | 0.06 | 0.69 | 0.38 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.16 | ) | (0.36 | ) | (0.37 | ) | (0.39 | ) | (0.42 | ) | (0.45 | ) | |||||||||||||||||||||||
(0.03 | ) | — | (0.06 | ) | — | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.19 | ) | (0.36 | ) | (0.43 | ) | (0.39 | ) | (0.42 | ) | (0.45 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 12.80 | $ | 12.68 | $ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.60 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
2.50% | 7.54% | 0.26% | 0.49% | 5.52% | 3.02% | |||||||||||||||||||||||||||||
$ | 388,611 | $ | 386,790 | $ | 390,477 | $ | 423,497 | $ | 481,066 | $ | 479,275 | |||||||||||||||||||||||
0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.87% | |||||||||||||||||||||||||||||
0.93% | 0.93% | 0.94% | 0.95% | 0.95% | 0.96% | |||||||||||||||||||||||||||||
2.54% | 2.92% | 2.99% | 3.08% | 3.25% | 3.51% | |||||||||||||||||||||||||||||
2.46% | 2.84% | 2.90% | 2.98% | 3.15% | 3.42% | |||||||||||||||||||||||||||||
11% | 13% | 16% | 17% | 15% | 11% | |||||||||||||||||||||||||||||
|
|
53
Table of Contents
Financial highlights
DelawareTax-Free Minnesota Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
54
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 12.72 | $ | 12.18 | $ | 12.58 | $ | 12.91 | $ | 12.64 | $ | 12.71 | |||||||||||||||||||||||
0.11 | 0.27 | 0.28 | 0.29 | 0.32 | 0.35 | |||||||||||||||||||||||||||||
0.15 | 0.54 | (0.34 | ) | (0.33 | ) | 0.27 | (0.07 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.26 | 0.81 | (0.06 | ) | (0.04 | ) | 0.59 | 0.28 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.11 | ) | (0.27 | ) | (0.28 | ) | (0.29 | ) | (0.32 | ) | (0.35 | ) | |||||||||||||||||||||||
(0.03 | ) | — | (0.06 | ) | — | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.14 | ) | (0.27 | ) | (0.34 | ) | (0.29 | ) | (0.32 | ) | (0.35 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 12.84 | $ | 12.72 | $ | 12.18 | $ | 12.58 | $ | 12.91 | $ | 12.64 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
2.12% | 6.73% | (0.49% | ) | (0.25% | ) | 4.73% | 2.25% | |||||||||||||||||||||||||||
$ | 28,910 | $ | 29,933 | $ | 35,642 | $ | 51,045 | $ | 53,502 | $ | 45,393 | |||||||||||||||||||||||
1.60% | 1.60% | 1.60% | 1.60% | 1.60% | 1.62% | |||||||||||||||||||||||||||||
1.68% | 1.68% | 1.69% | 1.70% | 1.70% | 1.71% | |||||||||||||||||||||||||||||
1.79% | 2.17% | 2.24% | 2.33% | 2.50% | 2.76% | |||||||||||||||||||||||||||||
1.71% | 2.09% | 2.15% | 2.23% | 2.40% | 2.67% | |||||||||||||||||||||||||||||
11% | 13% | 16% | 17% | 15% | 11% | |||||||||||||||||||||||||||||
|
|
55
Table of Contents
Financial highlights
DelawareTax-Free Minnesota Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
56
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 12.68 | $ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.59 | $ | 12.66 | |||||||||||||||||||||||
0.17 | 0.39 | 0.40 | 0.41 | 0.45 | 0.48 | |||||||||||||||||||||||||||||
0.15 | 0.54 | (0.34 | ) | (0.32 | ) | 0.28 | (0.07 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.32 | 0.93 | 0.06 | 0.09 | 0.73 | 0.41 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.17 | ) | (0.39 | ) | (0.40 | ) | (0.42 | ) | (0.45 | ) | (0.48 | ) | |||||||||||||||||||||||
(0.03 | ) | — | (0.06 | ) | — | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.20 | ) | (0.39 | ) | (0.46 | ) | (0.42 | ) | (0.45 | ) | (0.48 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 12.80 | $ | 12.68 | $ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.59 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
2.62% | 7.81% | 0.51% | 0.75% | 5.87% | 3.27% | |||||||||||||||||||||||||||||
$ | 189,068 | $ | 169,241 | $ | 119,894 | $ | 88,826 | $ | 53,133 | $ | 32,084 | |||||||||||||||||||||||
0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.62% | |||||||||||||||||||||||||||||
0.68% | 0.68% | 0.69% | 0.70% | 0.70% | 0.71% | |||||||||||||||||||||||||||||
2.79% | 3.17% | 3.24% | 3.33% | 3.50% | 3.76% | |||||||||||||||||||||||||||||
2.71% | 3.09% | 3.15% | 3.23% | 3.40% | 3.67% | |||||||||||||||||||||||||||||
11% | 13% | 16% | 17% | 15% | 11% | |||||||||||||||||||||||||||||
57
Table of Contents
Financial highlights
DelawareTax-Free Minnesota Intermediate Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
58
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 11.25 | $ | 10.82 | $ | 11.17 | $ | 11.44 | $ | 11.22 | $ | 11.32 | |||||||||||||||||||||||
0.14 | 0.31 | 0.30 | 0.31 | �� | 0.33 | 0.34 | ||||||||||||||||||||||||||||
0.12 | 0.43 | (0.31 | ) | (0.25 | ) | 0.22 | (0.10 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.26 | 0.74 | (0.01 | ) | 0.06 | 0.55 | 0.24 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.14 | ) | (0.31 | ) | (0.30 | ) | (0.31 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||||||||||||
— | — | (0.04 | ) | (0.02 | ) | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.14 | ) | (0.31 | ) | (0.34 | ) | (0.33 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 11.37 | $ | 11.25 | $ | 10.82 | $ | 11.17 | $ | 11.44 | $ | 11.22 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
2.35% | 7.00% | (0.01% | ) | 0.55% | 4.98% | 2.12% | ||||||||||||||||||||||||||||
$ | 58,520 | $ | 55,918 | $ | 59,284 | $ | 68,934 | $ | 79,730 | $ | 84,663 | |||||||||||||||||||||||
0.71% | 0.71% | 0.79% | 0.84% | 0.84% | 0.85% | |||||||||||||||||||||||||||||
1.03% | 1.04% | 1.00% | 0.99% | 0.97% | 0.98% | |||||||||||||||||||||||||||||
2.54% | 2.87% | 2.77% | 2.79% | 2.92% | 2.98% | |||||||||||||||||||||||||||||
2.22% | 2.54% | 2.56% | 2.64% | 2.79% | 2.85% | |||||||||||||||||||||||||||||
15% | 19% | 17% | 22% | 14% | 14% | |||||||||||||||||||||||||||||
|
|
59
Table of Contents
Financial highlights
DelawareTax-Free Minnesota Intermediate Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
60
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 11.27 | $ | 10.84 | $ | 11.19 | $ | 11.47 | $ | 11.24 | $ | 11.35 | |||||||||||||||||||||||
0.09 | 0.22 | 0.21 | 0.22 | 0.24 | 0.24 | |||||||||||||||||||||||||||||
0.12 | 0.43 | (0.31 | ) | (0.26 | ) | 0.23 | (0.11 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.21 | 0.65 | (0.10 | ) | (0.04 | ) | 0.47 | 0.13 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.09 | ) | (0.22 | ) | (0.21 | ) | (0.22 | ) | (0.24 | ) | (0.24 | ) | |||||||||||||||||||||||
— | — | (0.04 | ) | (0.02 | ) | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.09 | ) | (0.22 | ) | (0.25 | ) | (0.24 | ) | (0.24 | ) | (0.24 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 11.39 | $ | 11.27 | $ | 10.84 | $ | 11.19 | $ | 11.47 | $ | 11.24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
1.92% | 6.09% | (0.86% | ) | (0.39% | ) | 4.17% | 1.16% | |||||||||||||||||||||||||||
$ | 6,516 | $ | 7,167 | $ | 8,558 | $ | 11,885 | $ | 13,315 | $ | 11,740 | |||||||||||||||||||||||
1.56% | 1.56% | 1.64% | 1.69% | 1.69% | 1.70% | |||||||||||||||||||||||||||||
1.78% | 1.79% | 1.75% | 1.74% | 1.72% | 1.73% | |||||||||||||||||||||||||||||
1.69% | 2.02% | 1.92% | 1.94% | 2.07% | 2.13% | |||||||||||||||||||||||||||||
1.47% | 1.79% | 1.81% | 1.89% | 2.04% | 2.10% | |||||||||||||||||||||||||||||
15% | 19% | 17% | 22% | 14% | 14% | |||||||||||||||||||||||||||||
|
|
61
Table of Contents
Financial highlights
DelawareTax-Free Minnesota Intermediate Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
62
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 11.25 | $ | 10.83 | $ | 11.17 | $ | 11.45 | $ | 11.22 | $ | 11.33 | |||||||||||||||||||||||
0.15 | 0.33 | 0.32 | 0.33 | 0.35 | 0.35 | |||||||||||||||||||||||||||||
0.13 | 0.42 | (0.30 | ) | (0.26 | ) | 0.23 | (0.11 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.28 | 0.75 | 0.02 | 0.07 | 0.58 | 0.24 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.15 | ) | (0.33 | ) | (0.32 | ) | (0.33 | ) | (0.35 | ) | (0.35 | ) | |||||||||||||||||||||||
— | — | (0.04 | ) | (0.02 | ) | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.15 | ) | (0.33 | ) | (0.36 | ) | (0.35 | ) | (0.35 | ) | (0.35 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 11.38 | $ | 11.25 | $ | 10.83 | $ | 11.17 | $ | 11.45 | $ | 11.22 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
2.52% | 7.06% | 0.23% | 0.61% | 5.22% | 2.18% | |||||||||||||||||||||||||||||
$ | 18,248 | $ | 17,718 | $ | 11,470 | $ | 18,800 | $ | 12,694 | $ | 4,402 | |||||||||||||||||||||||
0.56% | 0.56% | 0.64% | 0.69% | 0.69% | 0.70% | |||||||||||||||||||||||||||||
0.78% | 0.79% | 0.75% | 0.74% | 0.72% | 0.73% | |||||||||||||||||||||||||||||
2.69% | 3.02% | 2.92% | 2.94% | 3.07% | 3.13% | |||||||||||||||||||||||||||||
2.47% | 2.79% | 2.81% | 2.89% | 3.04% | 3.10% | |||||||||||||||||||||||||||||
15% | 19% | 17% | 22% | 14% | 14% | |||||||||||||||||||||||||||||
|
|
63
Table of Contents
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
64
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Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.21 | $ | 10.66 | $ | 10.88 | $ | 11.13 | $ | 10.84 | $ | 10.88 | |||||||||||||||||||||||||||||||
0.14 | 0.32 | 0.32 | 0.33 | 0.36 | 0.38 | |||||||||||||||||||||||||||||||||||||
0.18 | 0.55 | (0.22 | ) | (0.25 | ) | 0.29 | (0.04 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.32 | 0.87 | 0.10 | 0.08 | 0.65 | 0.34 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.14 | ) | (0.32 | ) | (0.32 | ) | (0.33 | ) | (0.36 | ) | (0.38 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.14 | ) | (0.32 | ) | (0.32 | ) | (0.33 | ) | (0.36 | ) | (0.38 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.39 | $ | 11.21 | $ | 10.66 | $ | 10.88 | $ | 11.13 | $ | 10.84 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
2.93% | 8.33% | 0.95% | 0.84% | 6.12% | 3.20% | |||||||||||||||||||||||||||||||||||||
$ | 109,836 | $ | 103,487 | $ | 98,980 | $ | 98,491 | $ | 121,168 | $ | 122,618 | |||||||||||||||||||||||||||||||
0.89% | 0.89% | 0.89% | 0.89% | 0.89% | 0.91% | |||||||||||||||||||||||||||||||||||||
0.98% | 0.99% | 0.99% | 0.99% | 0.98% | 1.01% | |||||||||||||||||||||||||||||||||||||
2.62% | 2.97% | 2.98% | 3.08% | 3.23% | 3.52% | |||||||||||||||||||||||||||||||||||||
2.53% | 2.87% | 2.88% | 2.98% | 3.14% | 3.42% | |||||||||||||||||||||||||||||||||||||
8% | 12% | 14% | 19% | 15% | 16% | |||||||||||||||||||||||||||||||||||||
|
65
Table of Contents
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
66
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 11.23 | $ | 10.68 | $ | 10.90 | $ | 11.15 | $ | 10.87 | $ | 10.90 | |||||||||||||||||||||||
0.10 | 0.24 | 0.24 | 0.25 | 0.27 | 0.30 | |||||||||||||||||||||||||||||
0.18 | 0.55 | (0.22 | ) | (0.25 | ) | 0.29 | (0.03 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.28 | 0.79 | 0.02 | — | 0.56 | 0.27 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.10 | ) | (0.24 | ) | (0.24 | ) | (0.25 | ) | (0.28 | ) | (0.30 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.10 | ) | (0.24 | ) | (0.24 | ) | (0.25 | ) | (0.28 | ) | (0.30 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 11.41 | $ | 11.23 | $ | 10.68 | $ | 10.90 | $ | 11.15 | $ | 10.87 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
2.55% | 7.51% | 0.19% | 0.09% | 5.22% | 2.53% | |||||||||||||||||||||||||||||
$ | 21,755 | $ | 21,059 | $ | 21,651 | $ | 32,223 | $ | 35,751 | $ | 32,174 | |||||||||||||||||||||||
1.64% | 1.64% | 1.64% | 1.64% | 1.64% | 1.66% | |||||||||||||||||||||||||||||
1.73% | 1.74% | 1.74% | 1.74% | 1.73% | 1.76% | |||||||||||||||||||||||||||||
1.87% | 2.22% | 2.23% | 2.33% | 2.48% | 2.77% | |||||||||||||||||||||||||||||
1.78% | 2.12% | 2.13% | 2.23% | 2.39% | 2.67% | |||||||||||||||||||||||||||||
8% | 12% | 14% | 19% | 15% | 16% | |||||||||||||||||||||||||||||
|
|
67
Table of Contents
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
68
Table of Contents
Six months ended 2/29/201 (Unaudited) | ||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||
$ | 11.20 | $ | 10.66 | $ | 10.87 | $ | 11.12 | $ | 10.84 | $ | 10.88 | |||||||||||||||||||||||
0.16 | 0.35 | 0.35 | 0.36 | 0.38 | 0.41 | |||||||||||||||||||||||||||||
0.18 | 0.54 | (0.21 | ) | (0.25 | ) | 0.29 | (0.04 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
0.34 | 0.89 | 0.14 | 0.11 | 0.67 | 0.37 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.16 | ) | (0.35 | ) | (0.35 | ) | (0.36 | ) | (0.39 | ) | (0.41 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(0.16 | ) | (0.35 | ) | (0.35 | ) | (0.36 | ) | (0.39 | ) | (0.41 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 11.38 | $ | 11.20 | $ | 10.66 | $ | 10.87 | $ | 11.12 | $ | 10.84 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
3.06% | 8.50% | 1.30% | 1.09% | 6.28% | 3.46% | |||||||||||||||||||||||||||||
$ | 91,805 | $ | 75,155 | $ | 53,501 | $ | 44,805 | $ | 31,206 | $ | 14,841 | |||||||||||||||||||||||
0.64% | 0.64% | 0.64% | 0.64% | 0.64% | 0.66% | |||||||||||||||||||||||||||||
0.73% | 0.74% | 0.74% | 0.74% | 0.73% | 0.76% | |||||||||||||||||||||||||||||
2.87% | 3.22% | 3.23% | 3.33% | 3.48% | 3.77% | |||||||||||||||||||||||||||||
2.78% | 3.12% | 3.13% | 3.23% | 3.39% | 3.67% | |||||||||||||||||||||||||||||
8% | 12% | 14% | 19% | 15% | 16% | |||||||||||||||||||||||||||||
|
|
69
Table of Contents
Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds | February 29, 2020 (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, DelawareTax-Free California Fund, DelawareTax-Free Idaho Fund, and DelawareTax-Free New York Fund. VoyageurTax-Free Funds is organized as a Delaware statutory trust and offers DelawareTax-Free Minnesota Fund. Voyageur IntermediateTax-Free Funds is organized as a Delaware statutory trust and offers DelawareTax-Free Minnesota Intermediate Fund. Voyageur Mutual Funds, VoyageurTax-Free Funds, and Voyageur IntermediateTax-Free Funds are each referred to as a Trust, or collectively, as the Trusts. These financial statements and the related notes pertain to DelawareTax-Free Minnesota Fund, DelawareTax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund (each a Fund, or collectively, the Funds). Each Fund is anopen-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximumfront-end sales charge of 4.50% for DelawareTax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 2.75% for DelawareTax-Free Minnesota Intermediate Fund. Class A share purchases of $250,000 or more will incur a contingent deferred sales charge (CDSC) instead of afront-end sales charge of 1.00%, if redeemed during the first year, and 0.50% during the second year for DelawareTax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 0.75% for DelawareTax-Free Minnesota Intermediate Fund, if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class C shares are sold with a CDSC of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services—Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation— Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board, or collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.
Federal Income Taxes— No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite
70
Table of Contents
distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are“more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the six months ended Feb. 29, 2020 and for all open tax years (years ended Aug. 31, 2017–Aug. 31, 2019), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the six months ended Feb. 29, 2020, the Funds did not incur any interest or tax penalties.
Class Accounting— Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates— The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other— Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on theex-dividend date.
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Feb. 29, 2020, each Fund earned the following amounts under this arrangement:
71
Table of Contents
Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
1. Significant Accounting Policies (continued)
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
$3,472 | $821 | $1,974 |
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Feb. 29, 2020, each Fund earned the following amounts under this arrangement:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
$236 | $41 | $89 |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
On the first $500 million | 0.550% | 0.500% | 0.550% | |||
On the next $500 million | 0.500% | 0.475% | 0.500% | |||
On the next $1.5 billion | 0.450% | 0.450% | 0.450% | |||
In excess of $2.5 billion | 0.425% | 0.425% | 0.425% |
DMC has contractually agreed to waive that portion, if any, of its management fees and/or pay/reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any distribution and service(12b-1) fees, taxes, interest, acquired fund fees and expenses, inverse floater program expenses, short sale, dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), do not exceed the following percentage of each Fund’s average daily net assets from Sept. 1, 2019 through Feb. 29, 2020.* These waivers and reimbursements may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
72
Table of Contents
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
Operating expense limitation as a percentage of average daily net assets | 0.60% | 0.56% | 0.64% |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the six months ended Feb. 29, 2020, each Fund was charged for these services as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
$11,955 | $3,346 | $5,550 |
DIFSC is also the transfer agent and dividend disbursing agent of the Funds. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; and 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended Feb. 29, 2020, each Fund was charged for these services as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
$25,932 | $3,523 | $9,261 |
Pursuant to asub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certainsub-transfer agency services to each Fund.Sub-transfer agency fees are paid by each Fund and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual12b-1 fee of 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 C shares. DDLP has contracted to waive Delaware
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Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Tax-Free Minnesota Intermediate Fund’s Class A shares12b-1 fee to 0.15% of average daily net assets from Sept. 1, 2019 through Feb. 29, 2020.** The fees are calculated daily and paid monthly. Institutional Class shares do not pay12b-1 fees.
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended Feb. 29, 2020, each Fund was charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
$7,304 | $991 | $2,593 |
For the six months ended Feb. 29, 2020, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
$19,790 | $3,496 | $7,974 |
For the six months ended Feb. 29, 2020, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||
Class A | $285 | $ — | $ — | |||
Class C | 579 | 181 | 344 |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the six months ended Feb. 29, 2020, were executed by each Fund pursuant to procedures adopted by the Boards designed to ensure compliance with Rule17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review such transactions for compliance with the procedures adopted by the Boards.
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Pursuant to these procedures, for the six months ended Feb. 29, 2020, the Funds engaged in the following Rule17a-7 securities purchases and securities sales, which resulted in net realized gains (losses) as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | |||||||||||||
Purchases | $ | 7,758,711 | $ | 4,265,596 | $ | 7,290,147 | |||||||||
Sales | 5,711,123 | 3,498,983 | 826,067 | ||||||||||||
Net realized gains (losses) | (56,993 | ) | 74,824 | 42,951 |
*For DelawareTax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, the aggregate contractual waiver period covering this report is from Dec. 28, 2018 through Dec. 28, 2020. For DelawareTax-Free Minnesota Intermediate Fund, the aggregate contractual waiver period covering this report is from Dec. 28, 2018 through Dec. 28, 2020.
**For DelawareTax-Free Minnesota Intermediate Fund Class A shares, the aggregate contractual waiver period covering this report is from Dec. 28, 2018 through Dec. 28, 2020.
3. Investments
For the six months ended Feb. 29, 2020, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | |||||||||||||
Purchases | $ | 66,677,208 | $ | 14,318,314 | $ | 34,300,483 | |||||||||
Sales | 74,209,340 | 11,767,070 | 17,289,443 |
At Feb. 29, 2020, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes have been estimated since the final tax characteristics cannot be determined until fiscal year end. At Feb. 29, 2020, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:
Delaware Tax-Free Minnesota Fund | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||||||||||||||||||||||||
Cost of investments | $ | 570,103,832 | $ | 77,923,615 | $ | 205,452,147 | ||||||||||||||||||||||
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Aggregate unrealized appreciation of investments | $ | 41,706,559 | $ | 5,422,727 | $ | 14,832,682 | ||||||||||||||||||||||
Aggregate unrealized depreciation of investments | (753,275 | ) | (90,252 | ) | (352,485 | ) | ||||||||||||||||||||||
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Net unrealized appreciation of investments | $ | 40,953,284 | $ | 5,332,475 | $ | 14,480,197 | ||||||||||||||||||||||
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Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
3. Investments (continued)
At Aug. 31, 2019, DelawareTax-Free Minnesota Fund did not have any capital loss carryforwards.
At Aug. 31, 2019, capital loss carryforwards available to offset future realized capital gains for DelawareTax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund were as follows:
Loss carryforward character | ||||||||||||
Short-term | Long-term | Total | ||||||||||
DelawareTax-Free Minnesota Intermediate Fund | $ | 98,039 | $ | — | $ | 98,039 | ||||||
Delaware Minnesota High-Yield Municipal Bond Fund | 845,337 | 124,037 | 969,374 |
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities,open-end investment companies, futures contracts, and exchange-traded options contracts) | |
Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) | |
Level 3 – | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any
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restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of Feb. 29, 2020:
Delaware | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 601,057,116 | |||
Short-Term Investments | 10,000,000 | ||||
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Total Value of Securities | $ | 611,057,116 | |||
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Delaware Tax-Free | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 82,141,090 | |||
Short-Term Investments | 1,115,000 | ||||
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Total Value of Securities | $ | 83,256,090 | |||
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Delaware Minnesota High-Yield Municipal | |||||
Bond Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 216,242,344 | |||
Short-Term Investments | 3,690,000 | ||||
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Total Value of Securities | $ | 219,932,344 | |||
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During the six months ended Feb. 29, 2020, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to each Fund. Each Fund’s policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.
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Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
3. Investments (continued)
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to each Fund’s net assets. During the six months ended Feb. 29, 2020, there were no Level 3 investments.
4. Capital Shares
Transactions in capital shares were as follows:
DelawareTax-Free Minnesota Fund | DelawareTax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | ||||||||||||||||||||||
Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 1,031,596 | 2,812,545 | 362,362 | 521,273 | 767,243 | 1,091,129 | ||||||||||||||||||
Class C | 107,893 | 252,325 | 17,606 | 82,541 | 268,951 | 291,127 | ||||||||||||||||||
Institutional Class | 2,035,722 | 6,847,310 | 189,759 | 773,437 | 1,723,634 | 2,920,048 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||||||||
Class A | 421,225 | 798,095 | 54,040 | 124,608 | 111,744 | 240,677 | ||||||||||||||||||
Class C | 26,158 | 53,400 | 4,840 | 13,717 | 16,537 | 39,113 | ||||||||||||||||||
Institutional Class | 169,934 | 263,476 | 19,832 | 36,374 | 104,286 | 174,526 | ||||||||||||||||||
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3,792,528 | 11,027,151 | 648,439 | 1,551,950 | 2,992,395 | 4,756,620 | |||||||||||||||||||
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Shares redeemed: | ||||||||||||||||||||||||
Class A | (1,599,127 | ) | (5,263,546 | ) | (241,381 | ) | (1,153,362 | ) | (467,188 | ) | (1,382,974 | ) | ||||||||||||
Class C | (235,977 | ) | (878,285 | ) | (86,456 | ) | (249,651 | ) | (253,987 | ) | (481,931 | ) | ||||||||||||
Institutional Class | (782,984 | ) | (3,637,252 | ) | (180,087 | ) | (294,820 | ) | (471,312 | ) | (1,406,980 | ) | ||||||||||||
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(2,618,088 | ) | (9,779,083 | ) | (507,924 | ) | (1,697,833 | ) | (1,192,487 | ) | (3,271,885 | ) | |||||||||||||
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Net increase (decrease) | 1,174,440 | 1,248,068 | 140,515 | (145,883 | ) | 1,799,908 | 1,484,735 | |||||||||||||||||
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Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables on the previous page and on the “Statements of changes in net assets.” For the six months ended Feb. 29, 2020 and the year ended Aug. 31, 2019, the Funds had the following exchange transactions:
Six months ended | |||||||||||||||||||||||||
2/29/20 | |||||||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | ||||||||||||||||||||||||
Class A Shares | Class C Shares | Class A Shares | Institutional Class Shares | Value | |||||||||||||||||||||
DelawareTax-Free Minnesota Fund | 32,625 | 22,084 | 22,157 | 32,633 | $ | 689,856 | |||||||||||||||||||
DelawareTax-Free Minnesota Intermediate Fund | — | 8,649 | 8,429 | 252 | 96,847 | ||||||||||||||||||||
Delaware Minnesota High-Yield Municipal Bond Fund | 2,768 | 16,480 | 15,758 | 3,538 | 214,106 | ||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
8/31/19 | |||||||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | ||||||||||||||||||||||||
Class A Shares | Class C Shares | Class A Shares | Institutional Class Shares | Value | |||||||||||||||||||||
DelawareTax-Free Minnesota Fund | 59,365 | 40,077 | 31,466 | 68,171 | $ | 1,220,708 | |||||||||||||||||||
DelawareTax-Free Minnesota Intermediate Fund | 1,165 | 9,191 | 9,217 | 1,165 | 112,353 | ||||||||||||||||||||
Delaware Minnesota High-Yield Municipal Bond Fund | 26,086 | 44,298 | 9,709 | 60,819 | 745,406 |
5. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $220,000,000 revolving line of credit intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. On Nov. 4, 2019, the Participants entered into an amendment to the agreement for a $250,000,000 revolving line of credit (Agreement). The revolving line of credit is to be used as described below and on the next page and operates in substantially the same manner as the original agreement. The line of credit available under the Agreement expires on Nov. 2, 2020.
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Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
5. Line of Credit (continued)
Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum ofone-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on Nov. 4, 2019.
The Funds had no amounts outstanding as of Feb. 29, 2020, or at any time during the period then ended.
6. Geographic, Credit, and Market Risks
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
The risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.
The Funds concentrate their investments in securities issued by municipalities, mainly in Minnesota, and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam, whose bonds are also free of federal and individual state income taxes.
The value of the Funds’ investments may be adversely affected by new legislation within the US state or territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At Feb. 29, 2020, the percentages of each Fund’s net assets insured by bond insurers are listed below, and these securities have been identified in the “Schedules of investments.”
Delaware | Delaware Tax-Free Minnesota Intermediate Fund | Delaware Minnesota High-Yield Municipal Bond Fund | |||||||||||||
Assured Guaranty Municipal Corporation | 0.46 | % | 1.39 | % | 0.11 | % | |||||||||
National Public Finance Guarantee Corporation | 0.78 | % | — | — | |||||||||||
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1.24 | % | 1.39 | % | 0.11 | % | ||||||||||
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Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower thanBBB- by Standard & Poor’s Financial Services LLC (S&P), lower than Baa3 by Moody’s Investors Service Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater
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degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Each Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction or through a combination of such approaches. Each Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Each Fund may invest in advance refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” Advance refunded bonds are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest-bearing debt securities, which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered“pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A, promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. 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 Board has delegated to DMC, theday-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedules of investments.”
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Notes to financial statements | ||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
7. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
8. Recent Accounting Pronouncements
In March 2017, the FASB issued Accounting Standards Update (ASU), ASU2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. The ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. Management has implemented ASU2017-08 and determined that the impact of this guidance to the Fund’s net assets at the end of the period is not material.
In August 2018, the FASB issued ASU2018-13, which changes certain fair value measurement disclosure requirements. The ASU2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. The ASU2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
9. Subsequent Events
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known asCOVID-19. The outbreak ofCOVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects ofCOVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance.
Management has determined that no other material events or transactions occurred subsequent to Feb. 29, 2020, that would require recognition or disclosure in the Funds’ financial statements.
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Board of trustees | ||||||
Shawn K. Lytle President and Chief Executive Officer Delaware Funds® by Macquarie Philadelphia, PA
Thomas L. Bennett Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA
Jerome D. Abernathy Managing Member Stonebrook Capital Management, LLC Jersey City, NJ | Ann D. Borowiec Former Chief Executive Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY
Joseph W. Chow Former Executive Vice President State Street Corporation Boston, MA
John A. Fry President Drexel University Philadelphia, PA | Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. New York, NY
Frances A. Sevilla-Sacasa Former Chief Executive Officer Banco Itaú International Miami, FL | Thomas K. Whitford Former Vice Chairman PNC Financial Services Group Pittsburgh, PA
Christianna Wood Chief Executive Officer and President Gore Creek Capital, Ltd. Golden, CO
Janet L. Yeomans Former Vice President and Treasurer 3M Company St. Paul, MN | |||
Affiliated officers
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David F. Connor | Daniel V. Geatens | Richard Salus | ||||
Senior Vice President, | Vice President and | Senior Vice President and | ||||
General Counsel, | Treasurer | Chief Financial Officer | ||||
and Secretary | Delaware Funds | Delaware Funds | ||||
Delaware Funds | by Macquarie | by Macquarie | ||||
by Macquarie | Philadelphia, PA | Philadelphia, PA | ||||
Philadelphia, PA |
This semiannual report is for the information of DelawareTax-Free Minnesota Fund, DelawareTax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on FormN-PORT. Each Fund’s FormsN-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent FormN-PORT are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s FormsN-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
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![]() | ![]() |
Semiannual report
Fixed income mutual funds
DelawareTax-Free USA Fund
DelawareTax-Free USA Intermediate Fund
Delaware National High-Yield Municipal Bond Fund
February 29, 2020
Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up at delawarefunds.com/edelivery. If you own these shares through a financial intermediary, you may contact your financial intermediary.
You may elect to receive paper copies of all future shareholder reports free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 800523-1918. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the Delaware Funds® by Macquarie or your financial intermediary.
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Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawarefunds.com/edelivery.
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Experience Delaware Funds®by Macquarie
Macquarie Investment Management (MIM) is a global asset manager with offices in the United States, Europe, Asia, and Australia. As active managers we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for DelawareTax-Free USA Fund, DelawareTax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Manage your account online
● | Check your account balance and transactions |
● | View statements and tax forms |
● | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. MIM is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A.
The Funds are distributed byDelaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Funds are governed by US laws and regulations.
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Unless otherwise noted, views expressed herein are current as of Feb. 29, 2020, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2020 Macquarie Management Holdings, Inc.
Table of Contents
For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
The investment objective of DelawareTax-Free USA Fund and DelawareTax-Free USA Intermediate Fund is to seek as high a level of current interest income exempt from federal income taxes as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.
The investment objective of Delaware National High-Yield Municipal Bond Fund is to seek a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service(12b-1) fees; and other Fund expenses. 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 entiresix-month period from Sept. 1, 2019 to Feb. 29, 2020.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on 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 and assume reinvestment of all dividends and distributions.
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Table of Contents
Disclosure of Fund expenses
For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
DelawareTax-Free USA Fund
Expense analysis of an investment of $1,000
Beginning
Account Value | Ending
Account Value
2/29/20 | Annualized
Expense Ratio | Expenses
Paid During Period
9/1/19 to 2/29/20* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $ | 1,047.00 | 0.81% | $4.12 | |||||||||||
Class C | 1,000.00 | 1,043.20 | 1.56% | 7.92 | ||||||||||||
Institutional Class | 1,000.00 | 1,048.10 | 0.56% | 2.85 | ||||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||||
Class A | $1,000.00 | $ | 1,020.84 | 0.81% | $4.07 | |||||||||||
Class C | 1,000.00 | 1,017.11 | 1.56% | 7.82 | ||||||||||||
Institutional Class | 1,000.00 | 1,022.08 | 0.56% | 2.82 | ||||||||||||
DelawareTax-Free USA Intermediate Fund | ||||||||||||||||
Expense analysis of an investment of $1,000
| ||||||||||||||||
Beginning
Account Value
9/1/19 | Ending
Account Value
2/29/20 | Annualized
Expense Ratio | Expenses
Paid During Period
9/1/19 to 2/29/20* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $ | 1,035.00 | 0.65% | $3.29 | |||||||||||
Class C | 1,000.00 | 1,031.50 | 1.50% | 7.58 | ||||||||||||
Institutional Class | 1,000.00 | 1,035.50 | 0.50% | 2.53 | ||||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||||
Class A | $1,000.00 | $ | 1,021.63 | 0.65% | $3.27 | |||||||||||
Class C | 1,000.00 | 1,017.40 | 1.50% | 7.52 | ||||||||||||
Institutional Class | 1,000.00 | 1,022.38 | 0.50% | 2.51 |
2
Table of Contents
Delaware National High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
Beginning
Account Value
9/1/19 | Ending
Account Value
2/29/20 | Annualized
Expense Ratio | Expenses
Paid During Period
9/1/19 to 2/29/20* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $ | 1,056.00 | 0.85% | $4.35 | |||||||||||
Class C | 1,000.00 | 1,052.80 | 1.60% | 8.17 | ||||||||||||
Institutional Class | 1,000.00 | 1,057.80 | 0.60% | 3.07 | ||||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||||
Class A | $1,000.00 | $ | 1,020.64 | 0.85% | $4.27 | |||||||||||
Class C | 1,000.00 | 1,016.91 | 1.60% | 8.02 | ||||||||||||
Institutional Class | 1,000.00 | 1,021.88 | 0.60% | 3.02 |
* | “Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect theone-half year period). |
† | Because actual returns reflect only the most recentsix-month period, the returns shown may differ significantly from fiscal year returns. |
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Table of Contents
Security type / sector / state / territory allocations
DelawareTax-Free USA Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 105.16 | % | ||
Corporate Revenue Bonds | 18.62 | % | ||
Education Revenue Bonds | 7.96 | % | ||
Electric Revenue Bonds | 5.21 | % | ||
Healthcare Revenue Bonds | 13.64 | % | ||
Lease Revenue Bonds | 3.31 | % | ||
Local General Obligation Bonds | 8.46 | % | ||
Pre-Refunded/Escrowed to Maturity Bonds | 6.15 | % | ||
Special Tax Revenue Bonds | 10.53 | % | ||
State General Obligation Bonds | 14.16 | % | ||
Transportation Revenue Bonds | 15.25 | % | ||
Water & Sewer Revenue Bonds | 1.87 | % | ||
Total Value of Securities | 105.16 | % | ||
Liabilities Net of Receivables and Other Assets | (5.16 | %) | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free USA Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Alabama | 2.76 | % | ||
Arizona | 4.43 | % | ||
California | 11.78 | % | ||
Colorado | 4.08 | % | ||
Connecticut | 1.37 | % | ||
District of Columbia | 0.59 | % | ||
Florida | 4.38 | % | ||
Georgia | 0.80 | % | ||
Illinois | 8.82 | % | ||
Indiana | 1.13 | % | ||
Kansas | 0.22 | % | ||
Louisiana | 0.36 | % | ||
Maryland | 2.64 | % | ||
Massachusetts | 1.61 | % | ||
Michigan | 0.21 | % | ||
Minnesota | 1.24 | % | ||
Missouri | 0.91 | % | ||
Nebraska | 1.02 | % | ||
New Jersey | 3.39 | % | ||
New York | 9.81 | % | ||
North Carolina | 3.51 | % |
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Table of Contents
State / territory | Percentage of net assets | |||
Ohio | 7.73 | % | ||
Oklahoma | 2.26 | % | ||
Oregon | 0.11 | % | ||
Pennsylvania | 4.92 | % | ||
Puerto Rico | 7.09 | % | ||
Texas | 13.71 | % | ||
Utah | 0.63 | % | ||
Virginia | 2.32 | % | ||
Washington | 0.57 | % | ||
Wisconsin | 0.76 | % | ||
Total Value of Securities | 105.16 | % |
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Table of Contents
Security type / sector / state / territory allocations | ||
DelawareTax-Free USA Intermediate Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||||||||
Municipal Bonds* | 98.83 | % | ||||||||
Corporate Revenue Bonds | 14.55 | % | ||||||||
Education Revenue Bonds | 5.74 | % | ||||||||
Electric Revenue Bonds | 3.02 | % | ||||||||
Healthcare Revenue Bonds | 9.94 | % | ||||||||
Lease Revenue Bonds | 4.79 | % | ||||||||
Local General Obligation Bonds | 7.21 | % | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds | 6.46 | % | ||||||||
Special Tax Revenue Bonds | 13.05 | % | ||||||||
State General Obligation Bonds | 15.98 | % | ||||||||
Transportation Revenue Bonds | 14.45 | % | ||||||||
Water & Sewer Revenue Bonds | 3.64 | % | ||||||||
Short-Term Investments | 1.29 | % | ||||||||
Total Value of Securities | 100.12 | % | ||||||||
Liabilities Net of Receivables and Other Assets | (0.12 | %) | ||||||||
Total Net Assets | 100.00 | % | ||||||||
*As of the date of this report, DelawareTax-Free USA Intermediate Fund held bonds issued by or on behalf of territories and the states of the US as follows: |
| |||||||||
State / territory | Percentage of net assets | |||||||||
Alabama | 1.49 | % | ||||||||
Arizona | 8.57 | % | ||||||||
California | 14.98 | % | ||||||||
Colorado | 1.34 | % | ||||||||
Connecticut | 1.39 | % | ||||||||
Delaware | 0.06 | % | ||||||||
District of Columbia | 0.31 | % | ||||||||
Florida | 3.57 | % | ||||||||
Georgia | 1.11 | % | ||||||||
Hawaii | 0.64 | % | ||||||||
Idaho | 0.49 | % | ||||||||
Illinois | 8.08 | % | ||||||||
Iowa | 0.09 | % | ||||||||
Kansas | 0.27 | % | ||||||||
Kentucky | 0.99 | % | ||||||||
Louisiana | 2.69 | % | ||||||||
Maryland | 1.42 | % | ||||||||
Massachusetts | 2.07 | % | ||||||||
Michigan | 0.79 | % | ||||||||
Minnesota | 0.15 | % |
6
Table of Contents
State / territory | Percentage of net assets | ||||||
Mississippi | 1.22 | % | |||||
Missouri | 0.28 | % | |||||
Montana | 0.09 | % | |||||
New Jersey | 4.28 | % | |||||
New York | 15.41 | % | |||||
North Carolina | 0.72 | % | |||||
Ohio | 1.87 | % | |||||
Oklahoma | 0.58 | % | |||||
Oregon | 1.56 | % | |||||
Pennsylvania | 5.47 | % | |||||
Puerto Rico | 2.86 | % | |||||
South Carolina | 0.26 | % | |||||
Tennessee | 0.76 | % | |||||
Texas | 8.90 | % | |||||
Utah | 0.46 | % | |||||
Virginia | 2.36 | % | |||||
Washington | 1.24 | % | |||||
Wisconsin | 1.30 | % | |||||
Total Value of Securities | 100.12 | % |
7
Table of Contents
Security type / sector / state / territory allocations | ||
Delaware National High-Yield Municipal Bond Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||||||||
Municipal Bonds* | 104.35 | % | ||||||||
Corporate Revenue Bonds | 25.31 | % | ||||||||
Education Revenue Bonds | 16.77 | % | ||||||||
Electric Revenue Bonds | 2.50 | % | ||||||||
Healthcare Revenue Bonds | 24.20 | % | ||||||||
Housing Revenue Bonds | 0.45 | % | ||||||||
Lease Revenue Bonds | 4.28 | % | ||||||||
Local General Obligation Bonds | 2.93 | % | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds | 4.12 | % | ||||||||
Resource Recovery Revenue Bonds | 0.96 | % | ||||||||
Special Tax Revenue Bonds | 9.71 | % | ||||||||
State General Obligation Bonds | 7.82 | % | ||||||||
Transportation Revenue Bonds | 2.77 | % | ||||||||
Water & Sewer Revenue Bonds | 2.53 | % | ||||||||
Total Value of Securities | 104.35 | % | ||||||||
Liabilities Net of Receivables and Other Assets | (4.35 | %) | ||||||||
Total Net Assets | 100.00 | % | ||||||||
*As of the date of this report, Delaware National High-Yield Municipal Bond Fund held bonds issued by or on behalf of territories and the states of the US as follows: |
| |||||||||
State / territory | Percentage of net assets | |||||||||
Alabama | 3.57 | % | ||||||||
Arizona | 5.40 | % | ||||||||
Arkansas | 0.56 | % | ||||||||
California | 13.22 | % | ||||||||
Colorado | 2.17 | % | ||||||||
Delaware | 0.09 | % | ||||||||
District of Columbia | 0.62 | % | ||||||||
Florida | 4.17 | % | ||||||||
Georgia | 0.49 | % | ||||||||
Hawaii | 0.49 | % | ||||||||
Idaho | 0.49 | % | ||||||||
Illinois | 7.97 | % | ||||||||
Indiana | 1.62 | % | ||||||||
Iowa | 0.44 | % | ||||||||
Kansas | 0.33 | % | ||||||||
Kentucky | 0.99 | % | ||||||||
Louisiana | 1.27 | % | ||||||||
Maine | 0.11 | % | ||||||||
Maryland | 1.01 | % |
8
Table of Contents
State / territory | Percentage of net assets | |||||||||
Massachusetts | 0.40 | % | ||||||||
Michigan | 0.46 | % | ||||||||
Minnesota | 2.03 | % | ||||||||
Missouri | 1.63 | % | ||||||||
Montana | 0.09 | % | ||||||||
Nevada | 0.64 | % | ||||||||
New Hampshire | 0.39 | % | ||||||||
New Jersey | 3.61 | % | ||||||||
New York | 4.17 | % | ||||||||
North Carolina | 2.43 | % | ||||||||
Ohio | 12.28 | % | ||||||||
Oklahoma | 0.35 | % | ||||||||
Oregon | 0.34 | % | ||||||||
Pennsylvania | 4.43 | % | ||||||||
Puerto Rico | 10.96 | % | ||||||||
South Carolina | 0.36 | % | ||||||||
Tennessee | 0.54 | % | ||||||||
Texas | 6.92 | % | ||||||||
Utah | 0.30 | % | ||||||||
Vermont | 0.07 | % | ||||||||
Virginia | 3.10 | % | ||||||||
Washington | 1.00 | % | ||||||||
West Virginia | 0.17 | % | ||||||||
Wisconsin | 2.60 | % | ||||||||
Wyoming | 0.07 | % | ||||||||
Total Value of Securities | 104.35 | % |
9
Table of Contents
Schedules of investments | ||
DelawareTax-Free USA Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 105.16% | ||||||||
| ||||||||
Corporate Revenue Bonds – 18.62% | ||||||||
Buckeye, Ohio Tobacco Settlement Financing Authority | ||||||||
(Asset-Backed Senior Turbo) SeriesA-2 5.875% 6/1/47 | 13,475,000 | $ | 13,491,709 | |||||
(Senior Capital Appreciation) SeriesB-3 6.153% 6/1/57 ^ | 25,000,000 | 3,519,500 | ||||||
(Senior) | ||||||||
SeriesA-2 3.00% 6/1/48 | 12,000,000 | 12,287,280 | ||||||
SeriesA-2 4.00% 6/1/48 | 8,500,000 | 9,753,070 | ||||||
Central Plains, Nebraska Energy Project | ||||||||
(Project No. 3) | ||||||||
Series A 5.00% 9/1/31 | 2,810,000 | 3,699,056 | ||||||
Series A 5.00% 9/1/35 | 2,160,000 | 3,009,074 | ||||||
Erie, New York Tobacco Asset Securitization | ||||||||
(Capital Appreciation-Asset-Backed) Series A 1.536% 6/1/60 ^ | 57,695,000 | 1,693,925 | ||||||
Florida Development Finance Corporation Surface Transportation Facility Revenue | ||||||||
(Virgin Trains USA Passenger Rail Project) Series A 144A 6.50% 1/1/49 (AMT)#● | 3,245,000 | 3,353,188 | ||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Capital Appreciation-Asset-Backed) Series B 1.548% 6/1/47 ^ | 9,410,000 | 1,809,167 | ||||||
Hoover, Alabama Industrial Development Board | ||||||||
(United States Steel Corporation Project) 5.75% 10/1/49 (AMT) | 5,000,000 | 6,062,900 | ||||||
Indiana Finance Authority Exempt Facility Revenue | ||||||||
(Polyflow Indiana Project - Green Bond) 144A 7.00% 3/1/39 (AMT)# | 3,030,000 | 3,134,020 | ||||||
Inland, California Empire Tobacco Securitization | ||||||||
(Capital Appreciation-Turbo-Asset-Backed) | ||||||||
Series E 144A 0.967% 6/1/57 #^ | 105,485,000 | 5,213,069 | ||||||
Series F 144A 1.453% 6/1/57 #^ | 48,985,000 | 1,788,932 | ||||||
Lower Alabama Gas District | ||||||||
Series A 5.00% 9/1/34 | 4,400,000 | 6,045,072 | ||||||
Series A 5.00% 9/1/46 | 2,500,000 | 3,787,050 | ||||||
M-S-R Energy Authority, California Gas Revenue | ||||||||
Series A 6.125% 11/1/29 | 1,890,000 | 2,467,055 | ||||||
Series B 6.50% 11/1/39 | 5,000,000 | 8,423,700 | ||||||
Series C 6.50% 11/1/39 | 1,500,000 | 2,527,110 | ||||||
New Jersey Economic Development Authority Revenue | ||||||||
(Continental Airlines Project) Series B 5.625% 11/15/30 (AMT) | 1,365,000 | 1,583,154 |
10
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Corporate Revenue Bonds(continued) | ||||||||
New York Liberty Development Corporation Revenue | ||||||||
(Goldman Sachs Headquarters) 5.25% 10/1/35 | 685,000 | $ | 990,517 | |||||
New York Transportation Development Corporation Special Facility Revenue | ||||||||
(Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D | ||||||||
Redevelopment Project) Series 2018 4.00% 1/1/36 (AMT) | 910,000 | 1,034,843 | ||||||
Public Authority for Colorado Energy Natural Gas Revenue 6.50% 11/15/38 | 5,000,000 | 8,140,900 | ||||||
Salt Verde, Arizona Financial Senior Gas Revenue 5.00% 12/1/37 | 1,600,000 | 2,292,608 | ||||||
San Diego, Southern California Tobacco Securitization Authority | ||||||||
(CapitalAppreciation-2nd Subordinate Lien) Series C 0.558% 6/1/46 ^ | 10,570,000 | 1,858,523 | ||||||
(CapitalAppreciation-3rd Subordinate Lien) Series D 0.307% 6/1/46 ^ | 1,740,000 | 273,511 | ||||||
Shoals, Indiana | ||||||||
(National Gypsum Co. Project) 7.25% 11/1/43 (AMT) | 1,940,000 | 2,165,215 | ||||||
Valparaiso, Indiana | ||||||||
(Pratt Paper, LLC Project) 7.00% 1/1/44 (AMT) | 1,780,000 | 2,113,554 | ||||||
Virginia Tobacco Settlement Financing | ||||||||
(Capital Appreciation) | ||||||||
Series C 2.419% 6/1/47 ^ | 31,035,000 | 5,772,510 | ||||||
Series D 2.545% 6/1/47 ^ | 22,300,000 | 3,811,962 | ||||||
|
| |||||||
122,102,174 | ||||||||
|
| |||||||
Education Revenue Bonds – 7.96% | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(American Charter Schools Foundation Project) 144A 6.00% 7/1/47 # | 1,385,000 | 1,632,486 | ||||||
Auburn University, Alabama General Fee Revenue | ||||||||
Series A 5.00% 6/1/33 | 1,720,000 | 2,225,250 | ||||||
California Educational Facilities Authority Revenue | ||||||||
(Loma Linda University) Series A 5.00% 4/1/47 | 1,000,000 | 1,200,670 | ||||||
(Stanford University) SeriesV-1 5.00% 5/1/49 | 7,325,000 | 12,476,379 | ||||||
California State University | ||||||||
(Systemwide) Series A 5.00% 11/1/42 | 700,000 | 882,133 | ||||||
Capital Trust Agency, Florida Revenue | ||||||||
(University Bridge, LLC Student Housing Project) | ||||||||
Series A 144A 5.25% 12/1/43 # | 2,000,000 | 2,229,680 | ||||||
City of Columbia Heights, Minnesota Charter School Lease Revenue | ||||||||
(Prodeo Academy Project) Series A 5.00% 7/1/49 | 1,000,000 | 1,072,330 |
11
Table of Contents
Schedules of investments
DelawareTax-Free USA Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
Illinois Finance Authority Revenue | ||||||||
(University of Illinois at Chicago Project) | ||||||||
Series A 5.00% 2/15/47 | 1,860,000 | $ | 2,164,817 | |||||
Series A 5.00% 2/15/50 | 540,000 | 627,118 | ||||||
New Jersey Economic Development Authority | ||||||||
(Provident Group - Montclair State University) | ||||||||
5.00% 6/1/42 (AGM) | 1,250,000 | 1,502,975 | ||||||
Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue | ||||||||
(University Properties Inc. - East Stroudsburg University of Pennsylvania) 5.00% 7/1/31 | 3,000,000 | 3,032,370 | ||||||
Pima County, Arizona Industrial Development Authority Education Revenue | ||||||||
(American Leadership Academy Project) | ||||||||
144A 5.00% 6/15/47 # | 655,000 | 681,613 | ||||||
144A 5.00% 6/15/52 # | 560,000 | 582,126 | ||||||
University of California | ||||||||
Series AZ 5.25% 5/15/58 | 2,860,000 | 3,668,179 | ||||||
University of Michigan | ||||||||
Series A 5.00% 4/1/30 | 1,000,000 | 1,344,750 | ||||||
University of Texas System Board of Regents | ||||||||
Series B 5.00% 8/15/49 | 10,000,000 | 16,869,900 | ||||||
|
| |||||||
52,192,776 | ||||||||
|
| |||||||
Electric Revenue Bonds – 5.21% | ||||||||
Electric and Gas Systems Revenue San Antonio, Texas | ||||||||
5.25% 2/1/24 | 2,500,000 | 2,926,225 | ||||||
Long Island, New York Power Authority Electric System Revenue | ||||||||
5.00% 9/1/47 | 1,605,000 | 1,970,378 | ||||||
Municipal Electric Authority of Georgia | ||||||||
(Plant Vogtle Units 3 & 4 Project) Series A 5.00% 1/1/56 | 2,600,000 | 3,132,610 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.00% 7/1/42 ‡ | 3,135,000 | 2,504,081 | ||||||
Series A 5.05% 7/1/42 ‡ | 130,000 | 103,837 | ||||||
Series A 6.75% 7/1/36 ‡ | 500,000 | 409,375 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 75,000 | 60,094 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 485,000 | 388,606 | ||||||
Series WW 5.00% 7/1/28 ‡ | 400,000 | 319,500 | ||||||
Series XX 4.75% 7/1/26 ‡ | 265,000 | 210,344 | ||||||
Series XX 5.25% 7/1/40 ‡ | 3,370,000 | 2,700,213 | ||||||
Series XX 5.75% 7/1/36 ‡ | 940,000 | 757,875 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 210,000 | 166,687 |
12
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Electric Revenue Bonds(continued) | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series ZZ 5.25% 7/1/24 ‡ | 105,000 | $ | 84,131 | |||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue | ||||||||
Series A 5.00% 12/1/35 | 4,610,000 | 5,534,628 | ||||||
(Salt River Project Electric System) | ||||||||
Series A 5.00% 1/1/30 | 6,000,000 | 7,813,380 | ||||||
Series A 5.00% 1/1/39 | 4,000,000 | 5,091,800 | ||||||
|
| |||||||
34,173,764 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 13.64% | ||||||||
Alachua County, Florida Health Facilities Authority | ||||||||
(Oak Hammock University) Series A 8.00% 10/1/42 | 1,000,000 | 1,145,950 | ||||||
Allegheny County, Pennsylvania Hospital Development Authority Revenue | ||||||||
(Allegheny Health Network Obligated Group Issue) | ||||||||
Series A 4.00% 4/1/44 | 1,800,000 | 2,040,318 | ||||||
Series A 5.00% 4/1/47 | 1,800,000 | 2,206,854 | ||||||
Apple Valley, Minnesota | ||||||||
(Senior Living, LLC Project Fourth Tier) Series D 7.25% 1/1/52 | 2,500,000 | 2,450,975 | ||||||
(Senior Living, LLC Project Second Tier) Series B 5.00% 1/1/47 | 2,500,000 | 2,051,050 | ||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Great Lakes Senior Living Communities LLC Project) | ||||||||
Series A 5.00% 1/1/54 | 1,070,000 | 1,243,640 | ||||||
(Second Tier - Great Lakes Senior Living Communities LLC Project) | ||||||||
Series B 5.00% 1/1/49 | 400,000 | 455,708 | ||||||
Series B 5.125% 1/1/54 | 470,000 | 538,253 | ||||||
Brookhaven Development Authority Revenue, Georgia | ||||||||
(Children’s Healthcare of Atlanta) Series A 4.00% 7/1/49 | 1,810,000 | 2,122,080 | ||||||
California Health Facilities Financing Authority Revenue | ||||||||
(Kaiser Permanente) | ||||||||
SeriesA-2 4.00% 11/1/44 | 2,000,000 | 2,339,920 | ||||||
SeriesA-2 5.00% 11/1/47 | 2,105,000 | 3,473,524 | ||||||
(Sutter Health) Series A 5.00% 11/15/38 | 1,000,000 | 1,264,840 | ||||||
California Municipal Finance Authority Revenue | ||||||||
(Community Medical Centers) Series A 5.00% 2/1/42 | 2,550,000 | 3,111,918 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(AdventHealth Obligated Group) Series A 4.00% 11/15/43 | 3,000,000 | 3,550,620 | ||||||
(American Baptist) 8.00% 8/1/43 | 2,040,000 | 2,327,864 |
13
Table of Contents
Schedules of investments
DelawareTax-Free USA Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Colorado Health Facilities Authority Revenue | ||||||||
(Cappella of Grand Junction Project) 144A 5.00% 12/1/54 # | 2,100,000 | $ | 2,273,229 | |||||
(CommonSpirit Health) | ||||||||
SeriesA-1 4.00% 8/1/44 | 1,000,000 | 1,154,530 | ||||||
SeriesA-2 4.00% 8/1/49 | 2,000,000 | 2,293,580 | ||||||
SeriesA-2 5.00% 8/1/44 | 1,750,000 | 2,178,750 | ||||||
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | 1,875,000 | 2,119,087 | ||||||
Cuyahoga County, Ohio | ||||||||
(The Metro Health System) 5.25% 2/15/47 | 2,235,000 | 2,661,147 | ||||||
5.50% 2/15/57 | 3,000,000 | 3,599,580 | ||||||
Maricopa County, Arizona Industrial Development Authority Senior Living Facility Revenue Bonds | ||||||||
(Christian Care Surprise, Inc. Project) 144A 6.00% 1/1/48 # | 1,195,000 | 1,292,823 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue | ||||||||
(Adventist Healthcare Obligated) Series A 5.50% 1/1/46 | 2,000,000 | 2,437,280 | ||||||
Montgomery County, Pennsylvania Higher Education & Health Authority Revenue | ||||||||
(Thomas Jefferson University Project) 5.00% 9/1/51 | 2,000,000 | 2,500,920 | ||||||
Montgomery County, Pennsylvania Industrial Development Authority Revenue | ||||||||
(Foulkeways At Gwynedd Project) 5.00% 12/1/46 | 1,500,000 | 1,713,120 | ||||||
Moon, Pennsylvania Industrial Development Authority | ||||||||
(Baptist Homes Society Obligation) 6.125% 7/1/50 | 2,250,000 | 2,486,317 | ||||||
New York State Dormitory Authority | ||||||||
(Orange Regional Medical Center) | ||||||||
144A 5.00% 12/1/34 # | 400,000 | 485,988 | ||||||
144A 5.00% 12/1/35 # | 1,200,000 | 1,453,512 | ||||||
144A 5.00% 12/1/37 # | 800,000 | 963,368 | ||||||
Orange County, New York Funding Corporation Assisted Living Residence Revenue | ||||||||
6.50% 1/1/46 | 3,000,000 | 3,104,310 | ||||||
Oregon Health & Science University Revenue | ||||||||
(Capital Appreciation Insured) Series A | ||||||||
5.757% 7/1/21 (NATL)^ | 775,000 | 748,045 | ||||||
Palm Beach County, Florida Health Facilities Authority | ||||||||
(Sinai Residences Boca Raton Project) | ||||||||
Series A 7.25% 6/1/34 | 120,000 | 136,508 | ||||||
Series A 7.50% 6/1/49 | 610,000 | 692,155 |
14
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Pennsylvania Economic Development Financing Authority First Mortgage Revenue | ||||||||
(Tapestry Moon Senior Housing Project) | ||||||||
Series A 144A 6.50% 12/1/38 # | 1,785,000 | $ | 1,849,742 | |||||
Series A 144A 6.75% 12/1/53 # | 3,115,000 | 3,237,451 | ||||||
Pennsylvania Higher Educational Facilities Authority Revenue | ||||||||
(University of Pennsylvania Health System) 4.00% 8/15/49 | 7,000,000 | 8,219,330 | ||||||
Rochester, Minnesota | ||||||||
(The Homestead at Rochester) Series A 6.875% 12/1/48 | 2,350,000 | 2,581,734 | ||||||
Seminole County, Florida Industrial Development Authority Revenue | ||||||||
(Legacy Pointe at UCF Project) Series A 5.50% 11/15/49 | 2,000,000 | 2,112,180 | ||||||
Tarrant County, Texas Cultural Education Facilities Finance Corporation Retirement Facility Revenue | ||||||||
(Buckner Senior Living - Ventana Project) 6.625% 11/15/37 | 1,000,000 | 1,220,080 | ||||||
Tempe, Arizona Industrial Development Authority Revenue | ||||||||
(Friendship Village) Series A 6.25% 12/1/46 | 1,000,000 | 1,063,930 | ||||||
(Mirabella At ASU Project) Series A 144A 6.125% 10/1/52 # | 690,000 | 817,188 | ||||||
Washington Health Care Facilities Authority Revenue | ||||||||
(CommonSpirit Health) SeriesA-2 5.00% 8/1/44 | 3,000,000 | 3,735,000 | ||||||
|
| |||||||
89,454,398 | ||||||||
|
| |||||||
Lease Revenue Bonds – 3.31% | ||||||||
California Pollution Control Financing Authority Revenue | ||||||||
(San Diego County Water Authority Desalination Project Pipeline) 144A 5.00% 7/1/39 # | 1,000,000 | 1,237,080 | ||||||
Metropolitan Pier & Exposition Authority, Illinois | ||||||||
(McCormick Place Expansion Project) | ||||||||
Series A 4.00% 6/15/50 | 2,425,000 | 2,746,749 | ||||||
Series A 5.00% 6/15/50 | 1,850,000 | 2,270,301 | ||||||
Series A 5.00% 6/15/57 | 1,620,000 | 1,911,487 | ||||||
New Jersey Economic Development Authority | ||||||||
(State Government Buildings Project) Series A 5.00% 6/15/47 | 2,250,000 | 2,688,863 | ||||||
New Jersey Transportation Trust Fund Authority | ||||||||
(Transportation Program) Series AA 5.00% 6/15/24 | 5,000,000 | 5,432,200 |
15
Table of Contents
Schedules of investments
DelawareTax-Free USA Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Lease Revenue Bonds(continued) | ||||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | ||||||||
(AFCO Investors II Portfolio) 144A | ||||||||
5.75% 10/1/31 (AMT)# | 2,245,000 | $ | 2,356,442 | |||||
St. Louis, Missouri Industrial Development Authority Leasehold Revenue | ||||||||
(Convention Center Hotel) 5.80% 7/15/20 (AMBAC)^ | 3,035,000 | 3,021,251 | ||||||
|
| |||||||
21,664,373 | ||||||||
|
| |||||||
Local General Obligation Bonds – 8.46% | ||||||||
Chicago, Illinois | ||||||||
Series A 5.25% 1/1/29 | 2,020,000 | 2,291,670 | ||||||
Series A 5.50% 1/1/49 | 1,530,000 | 1,909,394 | ||||||
Series A 6.00% 1/1/38 | 595,000 | 749,932 | ||||||
Chicago, Illinois Board of Education | 1,060,000 | 1,237,688 | ||||||
5.00% 4/1/46 | 1,085,000 | 1,259,696 | ||||||
Los Angeles, California Community College District | ||||||||
Series C 5.00% 8/1/25 | 2,500,000 | 3,083,800 | ||||||
Mecklenburg County, North Carolina | ||||||||
Series A 5.00% 4/1/25 | 7,020,000 | 8,506,274 | ||||||
Series A 5.00% 9/1/25 | 8,000,000 | 9,828,000 | ||||||
New York City, New York | ||||||||
SeriesE-1 5.00% 3/1/44 | 5,000,000 | 6,264,250 | ||||||
SeriesF-1 5.00% 4/1/45 | 5,355,000 | 6,711,207 | ||||||
SubseriesD-1 4.00% 12/1/42 | 1,700,000 | 2,014,959 | ||||||
SubseriesD-1 5.00% 10/1/36 | 6,500,000 | 6,919,575 | ||||||
Wake County, North Carolina | ||||||||
Series A 5.00% 3/1/27 | 3,650,000 | 4,691,126 | ||||||
|
| |||||||
55,467,571 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 6.15% | ||||||||
Bowling Green, Ohio Student Housing Revenue CFP I | ||||||||
(State University Project) 6.00%6/1/45-20§ | 5,295,000 | 5,362,299 | ||||||
Central Texas Regional Mobility Authority Revenue | ||||||||
Senior Lien 6.00%1/1/41-21§ | 5,160,000 | 5,379,558 | ||||||
Illinois Railsplitter Tobacco Settlement Authority | 6,000,000 | 6,387,060 | ||||||
Louisiana Public Facilities Authority Revenue | ||||||||
(Ochsner Clinic Foundation Project) 6.50%5/15/37-21§ | 2,190,000 | 2,337,650 | ||||||
Maryland Economic Development Corporation Revenue | ||||||||
(Transportation Facilities Project) Series A5.75% 6/1/35-20§ | 2,000,000 | 2,024,240 |
16
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
Oklahoma State Turnpike Authority Revenue | ||||||||
(First Senior) 6.00% 1/1/22 | 13,535,000 | $ | 14,811,892 | |||||
San Juan, Texas Higher Education Finance Authority Education Revenue | ||||||||
(Idea Public Schools) Series A 6.70%8/15/40-20§ | 1,500,000 | 1,539,045 | ||||||
Southwestern Illinois Development Authority Revenue | ||||||||
(Memorial Group) 7.125%11/1/43-23§ | 2,000,000 | 2,447,360 | ||||||
|
| |||||||
40,289,104 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 10.53% | ||||||||
Allentown, Pennsylvania Neighborhood Improvement Zone Development Authority Tax Revenue | ||||||||
(City Center Project) 144A 5.375% 5/1/42 # | 1,525,000 | 1,809,504 | ||||||
Conley Road Transportation Development District, Missouri | ||||||||
5.375% 5/1/47 | 2,000,000 | 2,134,660 | ||||||
Kansas City, Missouri Land Clearance Redevelopment Authority Revenue | ||||||||
(Convention Centre Hotel Project - TIF Financing) | ||||||||
Series B 144A 5.00% 2/1/50 # | 725,000 | 828,066 | ||||||
Massachusetts Bay Transportation Authority | ||||||||
Series A 5.00% 7/1/31 | 2,500,000 | 3,501,575 | ||||||
Massachusetts School Building Authority | ||||||||
Series C 5.00% 8/15/31 | 2,500,000 | 3,048,625 | ||||||
Mosaic, Virginia District Community Development Authority Revenue | ||||||||
Series A 6.875% 3/1/36 | 3,980,000 | 4,155,200 | ||||||
New Jersey Economic Development Authority Revenue | ||||||||
(Cigarette Tax) 5.00% 6/15/28 | 2,695,000 | 2,890,334 | ||||||
New York City, New York Industrial Development Agency | ||||||||
(Yankee Stadium) 7.00% 3/1/49 (AGC) | 1,000,000 | 1,009,860 | ||||||
New York City, New York Transitional Finance Authority | ||||||||
(Future Tax Secured Fiscal 2011) | ||||||||
Series C 5.25% 11/1/25 | 4,430,000 | 4,562,679 | ||||||
SeriesD-1 5.00% 2/1/26 | 3,000,000 | 3,114,960 | ||||||
(Future Tax Secured Fiscal 2014) SeriesA-1 5.00% 11/1/42 | 10,000,000 | 11,357,900 | ||||||
Public Finance Authority, Wisconsin | ||||||||
(American Dream @ Meadowlands Project) 144A 7.00% 12/1/50 # | 2,155,000 | 2,634,789 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.55% 7/1/40 | 1,456,000 | 1,641,888 | ||||||
SeriesA-1 4.75% 7/1/53 | 15,581,000 | 17,639,562 |
17
Table of Contents
Schedules of investments
DelawareTax-Free USA Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 5.00% 7/1/58 | 6,327,000 | $ | 7,256,246 | |||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | ||||||||
(Sales Tax - Vacation Village Project Area 1 and 2A) | ||||||||
Series 2015A 5.75% 9/1/32 | 1,280,000 | 1,428,237 | ||||||
|
| |||||||
69,014,085 | ||||||||
|
| |||||||
State General Obligation Bonds – 14.16% | ||||||||
California State | ||||||||
5.25% 11/1/40 | 3,795,000 | 3,907,104 | ||||||
Various Purposes | ||||||||
5.00% 8/1/27 | 2,500,000 | 3,156,300 | ||||||
5.00% 3/1/30 | 5,000,000 | 6,006,450 | ||||||
5.00% 4/1/32 | 1,400,000 | 2,015,118 | ||||||
5.00% 10/1/47 | 2,145,000 | 2,616,128 | ||||||
Commonwealth of Massachusetts | ||||||||
Series A 5.25% 1/1/33 | 3,000,000 | 4,018,290 | ||||||
Commonwealth of Pennsylvania | 2,500,000 | 3,140,325 | ||||||
Commonwealth of Puerto Rico | ||||||||
Series A 5.25% 7/1/31 ‡ | 785,000 | 652,531 | ||||||
Series A 6.00% 7/1/38 ‡ | 880,000 | 739,200 | ||||||
Series A 8.00% 7/1/35 ‡ | 3,905,000 | 2,860,413 | ||||||
(Public Improvement) | ||||||||
Series A 5.00% 7/1/41 ‡ | 1,880,000 | 1,424,100 | ||||||
Series A 5.125% 7/1/37 ‡ | 2,670,000 | 2,072,587 | ||||||
Series A 5.25% 7/1/30 ‡ | 3,700,000 | 3,075,625 | ||||||
Series A 5.50% 7/1/39 ‡ | 1,785,000 | 1,412,381 | ||||||
Connecticut State | ||||||||
Series B 5.00% 6/15/35 | 2,475,000 | 2,926,638 | ||||||
Series E 5.00% 9/15/35 | 2,500,000 | 3,186,525 | ||||||
Series E 5.00% 9/15/37 | 2,250,000 | 2,853,450 | ||||||
Florida State | ||||||||
(Department of TransportationRight-of-Way Acquisition and Bridge Construction) | ||||||||
Series A 4.00% 7/1/33 | 2,500,000 | 3,008,625 | ||||||
Series A 4.00% 7/1/34 | 3,660,000 | 4,389,877 | ||||||
Illinois State | ||||||||
5.00% 1/1/29 | 5,405,000 | 6,433,842 | ||||||
5.00% 5/1/36 | 480,000 | 543,144 | ||||||
5.00% 11/1/36 | 1,780,000 | 2,129,183 |
18
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
State General Obligation Bonds(continued) | ||||||||
Illinois State | ||||||||
5.00% 2/1/39 | 830,000 | $ | 929,500 | |||||
Series A 5.00% 4/1/38 | 785,000 | 862,684 | ||||||
Series C 5.00% 11/1/29 | 3,050,000 | 3,760,497 | ||||||
(Rebuild Illinois Program) Series B 4.00% 11/1/39 | 8,320,000 | 9,614,093 | ||||||
Maryland State | ||||||||
Series A 5.00% 3/15/26 | 5,000,000 | 6,239,600 | ||||||
Series A 5.00% 3/15/28 | 5,000,000 | 6,586,850 | ||||||
Texas State | ||||||||
(Transportation Commission Mobility) Series A 5.00% 10/1/33 | 1,755,000 | 2,241,100 | ||||||
|
| |||||||
92,802,160 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 15.25% | ||||||||
Broward County, Florida Airport System Revenue | ||||||||
Series A 4.00% 10/1/49 (AMT) | 10,000,000 | 11,646,300 | ||||||
Chicago, Illinois Midway International Airport | ||||||||
Series A 5.00% 1/1/28 (AMT) | 2,025,000 | 2,308,581 | ||||||
Chicago, Illinois O’Hare International Airport | ||||||||
Series B 5.00% 1/1/33 | 2,345,000 | 2,773,525 | ||||||
Series D 5.25% 1/1/42 | 2,000,000 | 2,482,900 | ||||||
Dallas, Texas Love Field 5.00% 11/1/35 (AMT) | 1,000,000 | 1,212,200 | ||||||
5.00% 11/1/36 (AMT) | 1,000,000 | 1,210,110 | ||||||
Grand Parkway, Texas Transportation Revenue | ||||||||
(Grand Parkway System-First Tier Toll) Series C 4.00% 10/1/49 | 5,000,000 | 5,926,650 | ||||||
Harris County, Texas Toll Road Authority | ||||||||
Senior Lien Series A 5.00% 8/15/27 | 3,750,000 | 4,829,100 | ||||||
Metropolitan Washington, D.C. Airports Authority Dulles Toll Road Revenue | ||||||||
(Dulles Metrorail and Capital Improvement Projects) | ||||||||
Series B 4.00% 10/1/49 | 3,280,000 | 3,844,849 | ||||||
New Jersey Turnpike Authority | ||||||||
Series A 5.00% 1/1/28 | 5,000,000 | 5,853,650 | ||||||
North Texas Tollway Authority Revenue | ||||||||
(Second Tier) Series A 5.00% 1/1/34 | 5,000,000 | 5,910,050 | ||||||
Series A 5.00% 1/1/43 | 7,000,000 | 8,749,090 | ||||||
Port Authority of New York & New Jersey Special Project | ||||||||
(JFK International Air Terminal) | ||||||||
Series 8 6.00% 12/1/42 | 4,735,000 | 4,914,788 | ||||||
Series 8 6.50% 12/1/28 | 5,500,000 | 5,744,475 |
19
Table of Contents
Schedules of investments
DelawareTax-Free USA Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Transportation Revenue Bonds(continued) | ||||||||
Salt Lake City, Utah Airport Revenue | ||||||||
Series B 5.00% 7/1/42 | 3,350,000 | $ | 4,134,905 | |||||
South Jersey Port, New Jersey | ||||||||
(Subordinated Marine Terminal) | ||||||||
Series A 5.00% 1/1/49 | 450,000 | 537,417 | ||||||
Series B 5.00% 1/1/42 (AMT) | 450,000 | 536,778 | ||||||
Series B 5.00% 1/1/48 (AMT) | 1,035,000 | 1,225,916 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | ||||||||
(LBJ Infrastructure) | ||||||||
7.00% 6/30/40 | 5,715,000 | 5,822,271 | ||||||
7.50% 6/30/33 | 1,560,000 | 1,593,446 | ||||||
(NTE Mobility Partners Segments 3 LLC Segment 3A and 3B Facility) | ||||||||
6.75% 6/30/43 (AMT) | 2,490,000 | 2,920,421 | ||||||
7.00% 12/31/38 (AMT) | 1,830,000 | 2,168,660 | ||||||
(NTE Mobility Partners Segments 3 LLC Segment 3C Project) 5.00% 6/30/58 (AMT) | 10,000,000 | 12,216,600 | ||||||
Virginia Small Business Financing Authority Revenue | ||||||||
(Transform 66 P3 Project) 5.00% 12/31/56 (AMT) | 1,220,000 | 1,447,176 | ||||||
|
| |||||||
100,009,858 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 1.87% | ||||||||
Dominion, Colorado Water & Sanitation District | ||||||||
5.75% 12/1/36 | 2,500,000 | 2,681,600 | ||||||
Southern California Water Replenishment District | ||||||||
5.00% 8/1/33 | 2,000,000 | 2,416,040 | ||||||
Texas Water Development Board State Water Implementation Fund | ||||||||
(Master Trust) Series A 4.00% 10/15/44 | 6,000,000 | 7,166,700 | ||||||
|
| |||||||
12,264,340 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $624,238,211) | 689,434,603 | |||||||
|
| |||||||
Total Value of Securities – 105.16% | $ | 689,434,603 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $39,854,296, which represents 6.08% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 7 in “Notes to financial statements.” |
20
Table of Contents
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Feb. 29, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
21
Table of Contents
Schedules of investments | ||
DelawareTax-Free USA Intermediate Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 98.83% | ||||||||
Corporate Revenue Bonds – 14.55% | ||||||||
Black Belt Energy Gas District, Alabama | ||||||||
(Project No. 4) Series A 4.00% 6/1/25 | 1,655,000 | $ | 1,890,291 | |||||
Buckeye, Ohio Tobacco Settlement Financing Authority | ||||||||
SeriesA-2 4.00% 6/1/37 | 420,000 | 502,156 | ||||||
SeriesA-2 4.00% 6/1/38 | 420,000 | 500,434 | ||||||
SeriesA-2 4.00% 6/1/39 | 420,000 | 498,716 | ||||||
SeriesA-2 5.00% 6/1/32 | 1,270,000 | 1,704,785 | ||||||
SeriesA-2 5.00% 6/1/33 | 850,000 | 1,132,361 | ||||||
SeriesA-2 5.00% 6/1/34 | 420,000 | 555,790 | ||||||
SeriesA-2 5.00% 6/1/35 | 850,000 | 1,120,105 | ||||||
SeriesA-2 5.00% 6/1/36 | 850,000 | 1,115,123 | ||||||
Chandler, Arizona Industrial Development Revenue Bonds | ||||||||
(Intel Corporation Project) 2.70% 12/1/37 (AMT)· | 3,000,000 | 3,156,570 | ||||||
Commonwealth of Pennsylvania Financing Authority | ||||||||
(Tobacco Master Settlement Payment) 5.00% 6/1/27 | 2,000,000 | 2,514,280 | ||||||
Denver City & County, Colorado Special Facilities Airport Revenue | ||||||||
(United Airlines Project) 5.00% 10/1/32 (AMT) | 1,190,000 | 1,315,688 | ||||||
Florida Development Finance Corporation Surface Transportation Facility Revenue | ||||||||
(Virgin Trains USA Passenger Rail Project) Series A 144A 6.50% 1/1/49 (AMT)#· | 1,710,000 | 1,767,011 | ||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Asset-Backed Bonds) SeriesA-1 5.00% 6/1/26 | 850,000 | 1,053,915 | ||||||
(Capital Appreciation Asset-Backed) Series B 1.548% 6/1/47 ^ | 5,885,000 | 1,131,450 | ||||||
Houston, Texas Airport System Revenue | ||||||||
(United Airlines) 5.00% 7/1/29 (AMT) | 3,010,000 | 3,404,220 | ||||||
Kentucky Public Energy Authority | ||||||||
(Gas Supply Revenue Bonds) SeriesC-1 4.00% 12/1/49· | 5,000,000 | 5,688,500 | ||||||
Lower Alabama Gas District | ||||||||
Series A 5.00% 9/1/34 | 4,850,000 | 6,663,318 | ||||||
Maricopa County, Arizona Corporation Pollution Control Revenue | ||||||||
(Public Service - Palo Verde Project) Series B 5.20% 6/1/43· | 3,000,000 | 3,029,220 | ||||||
Michigan Tobacco Settlement Finance Authority | ||||||||
Series A 6.00% 6/1/34 | 810,000 | 826,880 | ||||||
M-S-R Energy Authority, California Gas Revenue | ||||||||
Series B 6.50% 11/1/39 | 3,485,000 | 5,871,319 |
22
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | �� | |||||||
Corporate Revenue Bonds (continued) | ||||||||
New Jersey Economic Development Authority Special Facilities Revenue | ||||||||
(Continental Airlines Project) Series B 5.625% 11/15/30 (AMT) | 1,890,000 | $ | 2,192,060 | |||||
New Jersey Tobacco Settlement Financing Corporation | ||||||||
Series B 5.00% 6/1/46 | 3,105,000 | 3,659,708 | ||||||
New York Liberty Development Revenue | ||||||||
(Goldman Sachs Headquarters) 5.25% 10/1/35 | 3,405,000 | 4,923,664 | ||||||
New York Transportation Development Special Facilities Revenue | ||||||||
(Delta Airlines, Inc.-LaGuardia Airport Terminals C&D | ||||||||
Redevelopment Project) 5.00% 1/1/34 (AMT) | 3,000,000 | 3,713,580 | ||||||
Salt Verde, Arizona Financial Corporation Senior Gas Revenue | ||||||||
5.00% 12/1/32 | 3,850,000 | 5,218,290 | ||||||
5.00% 12/1/37 | 2,500,000 | 3,582,200 | ||||||
5.25% 12/1/24 | 3,050,000 | 3,580,639 | ||||||
TSASC, New York | ||||||||
Series A 5.00% 6/1/30 | 475,000 | 581,395 | ||||||
Series A 5.00% 6/1/31 | 475,000 | 579,101 | ||||||
Tulsa, Oklahoma Airports Improvement Trust | ||||||||
(American Airlines) 5.00% 6/1/35 (AMT)· | 975,000 | 1,119,251 | ||||||
Virginia Tobacco Settlement Financing Corporation | ||||||||
(Capital Appreciation Asset-Backed) Series C 2.419% 6/1/47 ^ | 29,400,000 | 5,468,400 | ||||||
Wisconsin Public Finance Authority Exempt Facilities Revenue | ||||||||
(National Gypsum) 5.25% 4/1/30 (AMT) | 2,905,000 | 3,238,087 | ||||||
|
| |||||||
83,298,507 | ||||||||
|
| |||||||
Education Revenue Bonds – 5.74% | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(American Charter Schools Foundation Project) 144A 6.00% 7/1/37 # | 1,420,000 | 1,696,233 | ||||||
Bucks County, Pennsylvania Industrial Development Authority Revenue | ||||||||
(School Lane Charter School Project) 5.125% 3/15/36 | 2,000,000 | 2,356,860 | ||||||
California Educational Facilities Authority Revenue | ||||||||
(Stanford University) SeriesV-1 5.00% 5/1/49 | 1,000,000 | 1,703,260 | ||||||
California State University | ||||||||
(Systemwide) Series A 5.00% 11/1/31 | 2,000,000 | 2,576,480 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(California Baptist University) Series A 6.125% 11/1/33 | 2,215,000 | 2,581,140 |
23
Table of Contents
Schedules of investments
DelawareTax-Free USA Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
Education Revenue Bonds(continued) | ||||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(Rocky Mountain Classical Academy Project) | ||||||||
144A 5.00% 10/1/29 # | 425,000 | $ | 490,760 | |||||
144A 5.00% 10/1/39 # | 425,000 | 483,765 | ||||||
144A 5.00% 10/1/49 # | 990,000 | 1,114,007 | ||||||
Illinois Finance Authority Revenue | ||||||||
(University of Illinois at Chicago) | ||||||||
Series A 5.00% 2/15/29 | 400,000 | 487,176 | ||||||
Series A 5.00% 2/15/31 | 365,000 | 439,445 | ||||||
Series A 5.00% 2/15/37 | 430,000 | 509,262 | ||||||
Kent County, Delaware | ||||||||
(Delaware State University Project) Series A 5.00% 7/1/40 | 310,000 | 358,574 | ||||||
Miami-Dade County, Florida Educational Facilities Authority | ||||||||
(University of Miami) | ||||||||
Series A 5.00% 4/1/30 | 520,000 | 615,831 | ||||||
Series A 5.00% 4/1/31 | 1,090,000 | 1,287,933 | ||||||
New York City, New York Trust for Cultural Resources | ||||||||
(Whitney Museum of American Art) 5.00% 7/1/21 | 3,025,000 | 3,128,304 | ||||||
New York State Dormitory Authority Revenue | ||||||||
(Touro College & University System) Series A 5.25% 1/1/34 | 1,335,000 | 1,536,318 | ||||||
Pennsylvania Higher Educational Facilities Authority Revenue | ||||||||
(Unrefunded Drexel University) Series A 5.25% 5/1/25 | 310,000 | 325,020 | ||||||
Phoenix, Arizona Industrial Development Authority Housing Revenue | ||||||||
(Downtown Phoenix Student Housing,LLC-Arizona State University Project) | ||||||||
Series A 5.00% 7/1/30 | 350,000 | 437,805 | ||||||
Series A 5.00% 7/1/32 | 235,000 | 291,635 | ||||||
Pima County, Arizona Industrial Development Authority Education Revenue | ||||||||
(Facility American Leadership Academy Project) | ||||||||
144A 5.00% 6/15/47 # | 745,000 | 775,269 | ||||||
144A 5.00% 6/15/52 # | 640,000 | 665,286 | ||||||
South Carolina Jobs - Economic Development Authority Educational Facilities Revenue | ||||||||
(High Point Academy Project) Series A 144A 5.75% 6/15/39 # | 1,245,000 | 1,466,199 |
24
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
Education Revenue Bonds(continued) | ||||||||
Texas A&M University Revenue Financing System | ||||||||
Series E 5.00% 5/15/26 | 2,500,000 | $ | 3,131,750 | |||||
University of Texas Permanent University Fund | ||||||||
Series B 5.00% 7/1/27 | 3,715,000 | 4,380,431 | ||||||
|
| |||||||
32,838,743 | ||||||||
|
| |||||||
Electric Revenue Bonds – 3.02% | ||||||||
Long Island, New York Power Authority | ||||||||
5.00% 9/1/33 | 250,000 | 315,090 | ||||||
5.00% 9/1/35 | 1,000,000 | 1,255,250 | ||||||
Municipal Electric Authority of Georgia | ||||||||
(Plant Vogtle Units 3&4 Project) Series A 4.00% 1/1/44 (AGM) | 2,250,000 | 2,580,390 | ||||||
New York State Utility Debt Securitization Authority | ||||||||
(Restructuring Bonds) 5.00% 12/15/33 | 1,500,000 | 1,843,380 | ||||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue | ||||||||
Series A 5.00% 12/1/35 | 4,000,000 | 4,802,280 | ||||||
(Salt River Project Electric System) 5.00% 1/1/30 | 5,000,000 | 6,511,150 | ||||||
|
| |||||||
17,307,540 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 9.94% | ||||||||
Apple Valley, Minnesota | ||||||||
(Minnesota Senior Living LLC Project) Series B 5.25% 1/1/37 | 965,000 | 853,398 | ||||||
Arizona Health Facilities Authority | ||||||||
(Scottsdale Lincoln Hospital Project) 5.00% 12/1/30 | 5,000,000 | 5,908,250 | ||||||
California Health Facilities Financing Authority | ||||||||
(Kaiser Permanente) SeriesA-1 5.00% 11/1/27 | 4,100,000 | 5,410,565 | ||||||
California Statewide Communities Development Authority | ||||||||
(Loma Linda University Medical Center) | ||||||||
Series A 144A 5.00% 12/1/33 # | 260,000 | 314,733 | ||||||
Series A 144A 5.00% 12/1/41 # | 1,685,000 | 1,940,631 | ||||||
Series A 5.25% 12/1/34 | 2,790,000 | 3,256,349 | ||||||
Capital Trust Agency, Florida | ||||||||
(Tuscan Gardens Senior Living Center) Series A 7.00% 4/1/35 | 1,630,000 | 1,668,175 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(CommonSpirit Health) | ||||||||
Series A 4.00% 8/1/37 | 500,000 | 587,470 | ||||||
Series A 4.00% 8/1/38 | 1,500,000 | 1,756,710 | ||||||
Series A 5.00% 8/1/37 | 1,105,000 | 1,399,383 | ||||||
Cuyahoga County, Ohio | ||||||||
(The Metrohealth System) 5.00% 2/15/37 | 1,000,000 | 1,187,750 |
25
Table of Contents
Schedules of investments
DelawareTax-Free USA Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Escambia County, Florida Health Facilities Authority | ||||||||
(Baptist Health Care Corporation Obligated Group) Series A 4.00% 8/15/45 | 3,080,000 | $ | 3,556,476 | |||||
Iowa Finance Authority Senior Housing Revenue Bonds | ||||||||
(PHS Council Bluffs, Inc. Project) 5.00% 8/1/33 | 500,000 | 537,995 | ||||||
Kalispell, Montana | ||||||||
(Immanuel Lutheran Corporation Project) Series A 5.25% 5/15/32 | 435,000 | 484,986 | ||||||
Lancaster County, Pennsylvania Hospital Authority | ||||||||
(Brethren Village Project) | ||||||||
5.00% 7/1/31 | 440,000 | 511,302 | ||||||
5.00% 7/1/32 | 440,000 | 507,492 | ||||||
(University of Pennsylvania Health System Obligation) | ||||||||
Series A 5.00% 8/15/33 | 2,430,000 | 2,998,717 | ||||||
Maricopa County, Arizona Industrial Development Authority Revenue | ||||||||
(Banner Health Obligation Group) Series A 5.00% 1/1/32 | 3,000,000 | 3,721,290 | ||||||
(Christian Care Surprise, Inc. Project) 144A 5.75% 1/1/36 # | 1,500,000 | 1,657,050 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue | ||||||||
(Adventist Healthcare Obligated) Series A 5.50% 1/1/36 | 2,000,000 | 2,471,840 | ||||||
Moon, Pennsylvania Industrial Development Authority | ||||||||
(Baptist Homes Society Obligation) 5.625% 7/1/30 | 2,440,000 | 2,701,153 | ||||||
New York State Dormitory Authority Revenue | ||||||||
(Orange Regional Medical Center) | ||||||||
144A 5.00% 12/1/31 # | 1,000,000 | 1,225,890 | ||||||
144A 5.00% 12/1/32 # | 1,100,000 | 1,344,277 | ||||||
144A 5.00% 12/1/33 # | 1,000,000 | 1,218,350 | ||||||
Oklahoma Development Finance Authority Health System Revenue | ||||||||
(OU Medicine Project) Series B 5.25% 8/15/43 | 1,790,000 | 2,210,453 | ||||||
Prince George’s County, Maryland | ||||||||
(Collington Episcopal Life Care Community) 5.00% 4/1/31 | 2,000,000 | 2,229,020 | ||||||
Public Finance Authority, Wisconsin Senior Living Revenue | ||||||||
(Mary’s Woods at Marylhurst Project) 144A 5.00% 5/15/29 # | 500,000 | 576,005 | ||||||
Seminole County, Florida Industrial Development Authority | ||||||||
(Legacy Pointe at UCF Project) | ||||||||
Series A 5.25% 11/15/39 | 2,630,000 | 2,768,680 | ||||||
SeriesB-1 4.25% 11/15/26 | 1,000,000 | 1,014,010 |
26
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Wisconsin Health & Educational Facilities Authority Revenue | ||||||||
(St.Camillus Health System) Series A 5.00% 11/1/39 | 815,000 | $ | 917,918 | |||||
|
| |||||||
56,936,318 | ||||||||
|
| |||||||
Lease Revenue Bonds – 4.79% | ||||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Lancer Plaza Project) 5.125% 11/1/23 | 330,000 | 361,178 | ||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Asset-Backed Enhanced) Series A 5.00% 6/1/35 | 3,000,000 | 3,602,640 | ||||||
Idaho Building Authority Revenue | ||||||||
(Health & Welfare Project) Series A 5.00% 9/1/24 | 2,380,000 | 2,617,143 | ||||||
Los Angeles County, California | ||||||||
(Disney Concert Hall Parking) 5.00% 3/1/23 | 2,395,000 | 2,706,494 | ||||||
New Jersey State Economic Development Authority | ||||||||
(NJ Transit Transportation Project) | ||||||||
Series A 4.00% 11/1/38 | 1,000,000 | 1,161,210 | ||||||
Series A 4.00% 11/1/39 | 1,000,000 | 1,157,430 | ||||||
New Jersey State Transportation Trust Fund Authority | ||||||||
Series B 5.50% 6/15/31 | 5,000,000 | 5,275,900 | ||||||
(Highway Reimbursement) Series A 5.00% 6/15/30 | 2,415,000 | 2,898,024 | ||||||
New York Liberty Development Revenue | ||||||||
(World Trade Center Project)Class 2-3 144A 5.15% 11/15/34 # | 1,000,000 | 1,149,330 | ||||||
New York State Dormitory Authority Revenue | ||||||||
(Health Facilities Improvement Program) | ||||||||
Series 1 5.00% 1/15/28 | 750,000 | 981,173 | ||||||
Series 1 5.00% 1/15/29 | 3,100,000 | 4,046,554 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | ||||||||
(AFCO Investors II Portfolio) 144A 5.00% 10/1/23 (AMT)# | 1,430,000 | 1,479,464 | ||||||
|
| |||||||
27,436,540 | ||||||||
|
| |||||||
Local General Obligation Bonds – 7.21% | ||||||||
Chesterfield County, Virginia | ||||||||
Series B 5.00% 1/1/22 | 4,070,000 | 4,384,937 | ||||||
Chicago, Illinois | ||||||||
Series A 5.25% 1/1/29 | 640,000 | 726,074 | ||||||
Series A 5.50% 1/1/35 | 1,980,000 | 2,539,825 | ||||||
Series C 5.00% 1/1/26 | 1,280,000 | 1,510,912 |
27
Table of Contents
Schedules of investments
DelawareTax-Free USA Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
Local General Obligation Bonds(continued) | ||||||||
Chicago, Illinois Board of Education | ||||||||
5.00% 4/1/35 | 825,000 | $ | 978,656 | |||||
5.00% 4/1/36 | 320,000 | 378,723 | ||||||
(Dedicated Revenues) | ||||||||
Series C 5.00% 12/1/30 | 2,160,000 | 2,663,150 | ||||||
Series C 5.00% 12/1/34 | 2,160,000 | 2,641,313 | ||||||
Fort Worth, Texas Independent School District | ||||||||
(School Building) 5.00% 2/15/27 (PSF) | 2,000,000 | 2,322,840 | ||||||
New York City, New York | ||||||||
SeriesB-1 4.00% 10/1/41 | 500,000 | 583,930 | ||||||
Series E 5.00% 8/1/23 | 3,685,000 | 4,207,275 | ||||||
SubseriesD-1 4.00% 12/1/42 | 4,300,000 | 5,096,661 | ||||||
SubseriesD-1 5.00% 10/1/30 | 4,000,000 | 4,263,560 | ||||||
San Francisco, California Bay Area Rapid Transit District | ||||||||
(Election 2004) Series D 5.00% 8/1/31 | 4,000,000 | 4,893,440 | ||||||
Wake County, North Carolina | ||||||||
Series A 5.00% 3/1/27 | 3,200,000 | 4,112,768 | ||||||
|
| |||||||
41,304,064 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 6.46% | ||||||||
California State Department of Water Resources | ||||||||
(Water System) Series AS 5.00%12/1/29-24§ | 15,000 | 18,051 | ||||||
Clifton, Texas Higher Education Finance Corporation Revenue | ||||||||
(Uplift Education) Series A 6.00%12/1/30-20§ | 1,100,000 | 1,141,679 | ||||||
Maryland State Economic Development Corporation Revenue | ||||||||
(Transportation Facilities Project) Series A 5.375%6/1/25-20§ | 2,535,000 | 2,563,417 | ||||||
New York State | ||||||||
Series A 5.00%2/15/28-21§ | 5,000,000 | 5,206,150 | ||||||
New York State Dormitory Authority Revenue | ||||||||
(North Shore Long Island Jewish Health System) Series A 5.00%5/1/23-21§ | 4,000,000 | 4,196,600 | ||||||
Oregon State | ||||||||
Series L 5.00%5/1/26-21§ | 6,000,000 | 6,292,740 | ||||||
Pennsylvania Higher Educational Facilities Authority Revenue | ||||||||
(Drexel University) Series A 5.25%5/1/25-21§ | 4,980,000 | 5,237,366 | ||||||
San Francisco, California City & County Airports Commission | ||||||||
Series D 5.00%5/1/25-21§ | 570,000 | 598,973 |
28
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
San Francisco, California City & County Public Utilities Commission Water Revenue | ||||||||
Subseries A 5.00%11/1/27-21§ | 5,000,000 | $ | 5,365,650 | |||||
Southwestern Illinois Development Authority | ||||||||
(Memorial Group) 7.125%11/1/30-23§ | 2,190,000 | 2,679,859 | ||||||
Virginia Commonwealth Transportation Board | ||||||||
(Gans-Garvee) 5.00%3/15/24-23§ | 3,250,000 | 3,664,505 | ||||||
|
| |||||||
36,964,990 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 13.05% | ||||||||
Allentown, Pennsylvania Neighborhood Improvement Zone Development Authority Tax Revenue | ||||||||
(City Center Project) 144A 5.00% 5/1/28 # | 750,000 | 925,747 | ||||||
144A 5.00% 5/1/33 # | 650,000 | 791,908 | ||||||
Baltimore, Maryland | ||||||||
(Senior Lien-Harbor Point Project) | ||||||||
Series A 144A 3.25% 6/1/31 # | 95,000 | 100,130 | ||||||
Series A 144A 3.30% 6/1/32 # | 105,000 | 111,078 | ||||||
Series A 144A 3.35% 6/1/33 # | 110,000 | 116,778 | ||||||
Series A 144A 3.40% 6/1/34 # | 115,000 | 122,637 | ||||||
Series A 144A 3.45% 6/1/35 # | 130,000 | 139,087 | ||||||
Series A 144A 3.50% 6/1/39 # | 270,000 | 283,046 | ||||||
Celebration Pointe, Florida Community Development | ||||||||
District 4.75% 5/1/24 | 485,000 | 519,323 | ||||||
5.00% 5/1/34 | 880,000 | 943,703 | ||||||
Connecticut State Transportation Infrastructure | ||||||||
Series B 5.00% 10/1/30 | 3,375,000 | 4,358,914 | ||||||
Dallas, Texas Convention Center Hotel Development Revenue | ||||||||
Series A 5.00% 1/1/24 | 3,420,000 | 3,429,576 | ||||||
Series A 5.25% 1/1/23 | 5,375,000 | 5,391,286 | ||||||
Ernest N Morail-New Orleans, Louisiana Exhibition Hall | ||||||||
Authority Special Tax Revenue 5.00% 7/15/26 | 2,330,000 | 2,548,624 | ||||||
Franklin County Convention Facilities Authority | ||||||||
(Greater Columbus Convention Center Hotel Expansion Project) | ||||||||
5.00% 12/1/33 | 245,000 | 310,413 | ||||||
5.00% 12/1/34 | 210,000 | 265,543 | ||||||
5.00% 12/1/35 | 250,000 | 315,388 | ||||||
5.00% 12/1/36 | 285,000 | 358,690 | ||||||
5.00% 12/1/37 | 270,000 | 338,615 |
29
Table of Contents
Schedules of investments
DelawareTax-Free USA Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Franklin County Convention Facilities Authority | ||||||||
(Greater Columbus Convention Center Hotel Expansion Project) | ||||||||
5.00% 12/1/38 | 345,000 | $ | 431,498 | |||||
5.00% 12/1/39 | 300,000 | 374,316 | ||||||
Harris County-Houston, Texas Sports Authority | ||||||||
(Senior Lien) Series A 5.00% 11/15/30 | 1,805,000 | 2,117,409 | ||||||
Kansas City, Missouri Land Clearance Redevelopment Authority Revenue | ||||||||
(Convention Center Hotel Project - TIF Financing) | ||||||||
Series B 144A 4.375% 2/1/31 # | 400,000 | 451,076 | ||||||
Series B 144A 5.00% 2/1/40 # | 200,000 | 231,486 | ||||||
Louisiana State Highway Improvement Revenue | ||||||||
Series A 5.00% 6/15/29 | 5,195,000 | 6,058,201 | ||||||
Massachusetts School Building Authority | ||||||||
Series C 5.00% 8/15/29 | 1,630,000 | 1,993,849 | ||||||
New Jersey Economic Development Authority Revenue | ||||||||
(Cigarette Tax) | ||||||||
5.00% 6/15/22 | 1,750,000 | 1,893,570 | ||||||
5.00% 6/15/23 | 1,250,000 | 1,350,138 | ||||||
New York City, New York Transitional Finance Authority Building Aid Revenue | ||||||||
Subordinate SubseriesS-3A 5.00% 7/15/28 | 4,400,000 | 5,830,528 | ||||||
New York City, New York Transitional Finance Authority Future Tax Secured | ||||||||
SubseriesA-1 5.00% 11/1/23 | 2,865,000 | 3,305,924 | ||||||
Subseries C 5.00% 11/1/27 | 4,150,000 | 4,863,302 | ||||||
SubseriesE-1 5.00% 2/1/26 | 4,020,000 | 4,342,082 | ||||||
Public Finance Authority, Wisconsin | ||||||||
(American Dream @ Meadowlands Project) 144A 7.00% 12/1/50 # | 1,010,000 | 1,234,866 | ||||||
Puerto Rico Sales Tax Financing Revenue (Restructured) | ||||||||
SeriesA-1 4.55% 7/1/40 | 6,015,000 | 6,782,935 | ||||||
SeriesA-2 4.329% 7/1/40 | 8,636,000 | 9,598,050 | ||||||
Richmond Heights, Missouri Tax Increment & Transaction Sales Tax Revenue Refunding & Improvement | ||||||||
(Francis Place Redevelopment Project) 5.625% 11/1/25 | 905,000 | 905,796 | ||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | ||||||||
(Sales Tax - Vacation Village Project Area 1 and 2A) | ||||||||
Series 2015A 5.00% 9/1/27 | 1,425,000 | 1,567,187 | ||||||
|
| |||||||
74,702,699 | ||||||||
|
|
30
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
State General Obligation Bonds – 15.98% | ||||||||
California State | ||||||||
5.00% 8/1/26 | 3,120,000 | $ | 3,936,910 | |||||
5.00% 9/1/30 | 1,715,000 | 2,156,492 | ||||||
Series C 5.00% 9/1/30 | 5,985,000 | 7,309,241 | ||||||
(Various Purposes) | ||||||||
5.00% 8/1/28 | 3,000,000 | 3,987,930 | ||||||
5.00% 4/1/32 | 1,410,000 | 2,029,512 | ||||||
5.00% 9/1/32 | 4,100,000 | 5,147,058 | ||||||
5.25% 9/1/28 | 7,750,000 | 8,261,423 | ||||||
Commonwealth of Massachusetts | ||||||||
Series A 5.00% 1/1/35 | 7,500,000 | 9,850,350 | ||||||
Commonwealth of Pennsylvania | ||||||||
5.00% 9/15/26 | 2,500,000 | 3,140,325 | ||||||
5.00% 7/15/28 | 3,870,000 | 5,094,855 | ||||||
Connecticut State | ||||||||
Series F 5.00% 9/15/27 | 2,790,000 | 3,574,771 | ||||||
Georgia State | ||||||||
Series A 5.00% 7/1/26 | 3,000,000 | 3,780,540 | ||||||
Hawaii State | ||||||||
Series FW 4.00% 1/1/34 | 3,010,000 | 3,641,980 | ||||||
Illinois State | ||||||||
4.00% 2/1/24 | 1,220,000 | 1,345,587 | ||||||
5.00% 1/1/29 | 2,000,000 | 2,380,700 | ||||||
5.00% 3/1/36 | 960,000 | 1,024,493 | ||||||
5.00% 11/1/36 | 1,965,000 | 2,350,474 | ||||||
Series B 4.00% 11/1/34 | 4,330,000 | 5,071,946 | ||||||
Series C 5.00% 11/1/29 | 3,400,000 | 4,192,030 | ||||||
Oregon State | ||||||||
(ArticleXI-Q State Projects) Series A 5.00% 5/1/28 | 2,000,000 | 2,636,120 | ||||||
Texas State | ||||||||
(Transportation Commission Highway Improvement) 5.00% 4/1/29 | 3,000,000 | 3,500,250 | ||||||
Washington State | ||||||||
SeriesR-2015E 5.00% 7/1/31 | 3,000,000 | 3,574,230 | ||||||
(Various Purposes) Series2015-A-1 5.00% 8/1/30 | 3,000,000 | 3,531,570 | ||||||
|
| |||||||
91,518,787 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 14.45% | ||||||||
Bay Area, California Toll Authority | ||||||||
(San Francisco Bay Area) 4.00% 4/1/34 | 1,000,000 | 1,184,730 | ||||||
Broward County, Florida Airport System Revenue | ||||||||
Series A 4.00% 10/1/49 (AMT) | 5,000,000 | 5,823,150 |
31
Table of Contents
Schedules of investments
DelawareTax-Free USA Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Transportation Revenue Bonds(continued) | ||||||||
Chicago, Illinois Midway International Airport | ||||||||
Series A 5.00% 1/1/28 (AMT) | 1,905,000 | $ | 2,171,776 | |||||
Chicago, Illinois O’Hare International Airport Revenue | ||||||||
Series B 5.00% 1/1/32 | 1,000,000 | 1,182,740 | ||||||
Series B 5.00% 1/1/33 | 1,520,000 | 1,797,765 | ||||||
(General-Airport-Senior Lien) | ||||||||
Series B 5.00% 1/1/36 | 2,500,000 | 3,208,850 | ||||||
Series B 5.00% 1/1/37 | 3,000,000 | 3,842,190 | ||||||
(General-Airport-Third Lien) Series C 5.25% 1/1/28 | 2,150,000 | 2,157,074 | ||||||
Hillsborough County, Florida Port District (Tampa Port Authority Project) Series B | ||||||||
5.00% 6/1/28 (AMT) | 375,000 | 480,263 | ||||||
Houston, Texas Airports Commission Revenue | ||||||||
Series B 5.00% 7/1/25 | 1,000,000 | 1,056,320 | ||||||
Series B 5.00% 7/1/26 | 3,000,000 | 3,168,120 | ||||||
Memphis-Shelby County, Tennessee Airport Authority Revenue | ||||||||
Series D 5.00% 7/1/24 | 4,110,000 | 4,334,694 | ||||||
Metropolitan Washington D.C. Airports Authority Dulles Toll Road Revenue | ||||||||
(Dulles Metrorail and Capital Improvement Project) | ||||||||
Series B 4.00% 10/1/37 | 1,500,000 | 1,801,710 | ||||||
New Jersey State Turnpike Authority Turnpike Revenue | ||||||||
Series A 5.00% 1/1/33 | 1,770,000 | 2,213,828 | ||||||
New Orleans, Louisiana Aviation Board | ||||||||
Series B 5.00% 1/1/32 (AGM) (AMT) | 2,900,000 | 3,388,273 | ||||||
Series B 5.00% 1/1/33 (AGM) (AMT) | 2,900,000 | 3,382,357 | ||||||
New York State Thruway Authority | ||||||||
Series J 5.00% 1/1/27 | 5,705,000 | 6,587,278 | ||||||
Pennsylvania State Turnpike Commission Revenue | ||||||||
Subordinate SeriesA-1 5.00% 12/1/29 | 3,590,000 | 4,214,696 | ||||||
Phoenix, Arizona Civic Improvement Corporation Airport Revenue | ||||||||
(Junior Lien Airport) Series A 5.00% 7/1/33 | 3,355,000 | 4,027,174 | ||||||
Port Authority of New York & New Jersey | ||||||||
(194th Series) 5.00% 10/15/32 | 2,500,000 | 3,049,200 | ||||||
(JFK International Air Terminal) Series 8 6.50% 12/1/28 | 8,300,000 | 8,668,935 | ||||||
Salt Lake City, Utah Airport Revenue | ||||||||
Series B 5.00% 7/1/31 | 500,000 | 630,675 | ||||||
Series B 5.00% 7/1/32 | 600,000 | 755,532 | ||||||
Series B 5.00% 7/1/33 | 1,000,000 | 1,256,780 |
32
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Transportation Revenue Bonds(continued) | ||||||||
San Francisco, California City & County Airport | ||||||||
Commission - San Francisco International Airport | ||||||||
Series D 5.00% 5/1/25 | 1,430,000 | $ | 1,503,373 | |||||
South Jersey Port, New Jersey (Subordinated Marine Terminal) | ||||||||
Series B 5.00% 1/1/32 (AMT) | 215,000 | 261,560 | ||||||
Series B 5.00% 1/1/33 (AMT) | 315,000 | 382,687 | ||||||
Series B 5.00% 1/1/34 (AMT) | 430,000 | 521,758 | ||||||
Series B 5.00% 1/1/35 (AMT) | 430,000 | 520,919 | ||||||
Series B 5.00% 1/1/36 (AMT) | 430,000 | 519,892 | ||||||
Series B 5.00% 1/1/37 (AMT) | 430,000 | 518,872 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien Revenue | ||||||||
(LBJ Infrastructure) 7.50% 6/30/33 | 3,625,000 | 3,702,720 | ||||||
(NTE Mobility Partners) 7.00% 12/31/38 (AMT) | 3,750,000 | 4,443,975 | ||||||
|
| |||||||
82,759,866 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 3.64% | ||||||||
California State Department of Water Resources | ||||||||
(Water System) Series AS 5.00% 12/1/29 | 2,680,000 | 3,210,935 | ||||||
Dominion, Colorado Water & Sanitation District | ||||||||
5.25% 12/1/27 | 500,000 | 535,745 | ||||||
Great Lakes, Michigan Water Authority Water Supply System Revenue | ||||||||
(Senior Lien Bond) Series C 5.00% 7/1/31 | 3,000,000 | 3,695,580 | ||||||
Sacramento, California Water Revenue | ||||||||
5.00% 9/1/26 | 3,160,000 | 3,630,461 | ||||||
San Antonio, Texas Water System Revenue | ||||||||
Series A 5.00% 5/15/32 | 1,500,000 | 1,898,160 | ||||||
Series A 5.00% 5/15/33 | 2,250,000 | 2,839,928 | ||||||
Texas Water Development Board (State Water Implementation Fund) Series A | ||||||||
4.00% 10/15/44 | 4,200,000 | 5,016,690 | ||||||
|
| |||||||
20,827,499 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $514,538,828) | 565,895,553 | |||||||
|
|
33
Table of Contents
Schedules of investments
DelawareTax-Free USA Intermediate Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Short-Term Investments – 1.29% | ||||||||
| ||||||||
Variable Rate Demand Notes – 1.29%¤ | ||||||||
Idaho Health Facilities Authority Revenue (St. Luke’s Health System Project) Series C 1.16% 3/1/48 (LOC – US Bank N.A.) | 200,000 | $ | 200,000 | |||||
Mississippi Business Finance Corporation Gulf Opportunity Zone Industrial Development Revenue (Chevron USA) | ||||||||
Series B 1.20% 12/1/30 | 900,000 | 900,000 | ||||||
Series H 1.20% 11/1/35 | 4,400,000 | 4,400,000 | ||||||
Series I 1.20% 11/1/35 | 1,000,000 | 1,000,000 | ||||||
Series L 1.20% 11/1/35 | 700,000 | 700,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer System Revenue SeriesBB-5 1.18% 6/15/33 (SPA - Bank of America N.A.) | 200,000 | 200,000 | ||||||
|
| |||||||
Total Short-Term Investments(cost $7,400,000) | 7,400,000 | |||||||
|
| |||||||
Total Value of Securities – 100.12% | $ | 573,295,553 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $23,872,099, which represents 4.17% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Feb. 29, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
34
Table of Contents
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LOC – Letter of Credit
N.A. – National Association
PSF – Guaranteed by Permanent School Fund
SPA –Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
35
Table of Contents
Schedules of investments | ||
Delaware National High-Yield Municipal Bond Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 104.35% | ||||||||
| ||||||||
Corporate Revenue Bonds – 25.31% | ||||||||
Allegheny County, Pennsylvania Industrial Development Authority Revenue | ||||||||
(Environmental Improvement - US Steel Corp. Project) | ||||||||
5.75% 8/1/42 (AMT) | 2,000,000 | $ | 2,125,040 | |||||
Anuvia, Florida | ||||||||
144A 5.00% 7/1/29 # | 134,139 | 115,360 | ||||||
Arkansas Development Finance Authority Revenue | ||||||||
(Big River Steel Project) Series A 144A | ||||||||
4.50% 9/1/49 (AMT)# | 8,000,000 | 8,972,160 | ||||||
Buckeye, Ohio Tobacco Settlement Financing Authority | ||||||||
(Asset-Backed Senior) SeriesB-2 5.00% 6/1/55 | 64,250,000 | 72,659,040 | ||||||
(Asset-Backed Turbo) | ||||||||
SeriesA-2 5.75% 6/1/34 | 5,475,000 | 5,481,625 | ||||||
SeriesA-2 5.875% 6/1/47 | 32,580,000 | 32,620,399 | ||||||
SeriesA-2 6.00% 6/1/42 | 3,100,000 | 3,103,937 | ||||||
SeriesA-2 6.50% 6/1/47 | 24,770,000 | 24,804,678 | ||||||
(Senior Capital Appreciation Asset-Backed) SeriesB-3 | ||||||||
6.153% 6/1/57 ^ | 50,000,000 | 7,039,000 | ||||||
California County Tobacco Securitization Agency | ||||||||
Settlement Revenue | ||||||||
(Capital Appreciation Bond - Fresno County Tobacco Funding Corporation) 0.83% 6/1/55 ^ | 100,000,000 | 6,857,000 | ||||||
California Pollution Control Financing Authority Revenue | ||||||||
(Calplant I Project) 144A 8.00% 7/1/39 (AMT)# | 5,250,000 | 5,240,287 | ||||||
(Poseidon Resources) 144A 5.00% 7/1/37 (AMT)# | 5,000,000 | 5,461,400 | ||||||
California State Enterprise Development Authority Revenue | ||||||||
(Sunpower Corp. - Recovery Zone Facility) | ||||||||
8.50% 4/1/31 | 1,000,000 | 1,037,820 | ||||||
Columbus County, North Carolina Industrial Facilities & Pollution Control Financing | ||||||||
(International Paper Co. Project) Series A 5.70% 5/1/34 | 1,000,000 | 1,007,420 | ||||||
Erie, New York Tobacco Asset Securitization | ||||||||
(Asset-Backed) Series A 1.536% 6/1/60 ^ | 192,305,000 | 5,646,075 | ||||||
Florida Development Finance Corporation Surface Transportation Facility Revenue | ||||||||
(Virgin Trains USA Passenger Rail Project) | ||||||||
Series A 144A 6.25% 1/1/49 (AMT)#● | 4,000,000 | 4,160,000 | ||||||
Series A 144A 6.50% 1/1/49 (AMT)#● | 10,000,000 | 10,333,400 | ||||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue | ||||||||
(Asset-Backed) SeriesA-2 5.00% 6/1/47 | 4,000,000 | 4,247,480 | ||||||
(Capital Appreciation -Asset-Backed-1st Subordinate) | ||||||||
Series B 1.548% 6/1/47 ^ | 30,145,000 | 5,795,678 |
36
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Corporate Revenue Bonds(continued) | ||||||||
Hoover, Alabama Industrial Development Board | ||||||||
(United States Steel Corporation Project) 5.75% 10/1/49 (AMT) | 13,000,000 | $ | 15,763,540 | |||||
Houston, Texas Airport System Revenue | ||||||||
SeriesB-1 5.00% 7/15/35 (AMT) | 3,000,000 | 3,448,110 | ||||||
(Special Facilities Continental Airlines, Inc. Terminal | ||||||||
Improvements Projects) Series 2011 6.625% 7/15/38 (AMT) | 2,000,000 | 2,128,380 | ||||||
(United Airlines Inc.) 5.00% 7/1/29 (AMT) | 1,150,000 | 1,300,615 | ||||||
Indiana Finance Authority Exempt Facility Revenue | ||||||||
(Polyflow Indiana Project - Green Bond) 144A 7.00% 3/1/39 (AMT)# | 13,035,000 | 13,482,492 | ||||||
Inland, California Empire Tobacco Securitization | ||||||||
(Capital Appreciation-Asset-Backed) | ||||||||
144A 0.967% 6/1/57 #^ | 351,610,000 | 17,376,566 | ||||||
144A 1.453% 6/1/57 #^ | 163,290,000 | 5,963,351 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue | ||||||||
(Westlake Chemical Corp.) SeriesA-1 6.50% 11/1/35 | 3,000,000 | 3,101,970 | ||||||
Louisiana Tobacco Settlement Financing Corporation | ||||||||
Asset-Backed Note Series A 5.25% 5/15/35 | 2,540,000 | 2,824,226 | ||||||
Main Street Natural Gas Project Revenue, Georgia | ||||||||
Series A 5.50% 9/15/23 | 40,000 | 45,871 | ||||||
Michigan Tobacco Settlement Financing Authority | ||||||||
Revenue Asset-Backed | ||||||||
Series A 6.00% 6/1/48 | 1,255,000 | 1,280,828 | ||||||
M-S-R Energy Authority, California Gas Revenue | ||||||||
Series A 6.50% 11/1/39 | 2,500,000 | 4,211,850 | ||||||
Series B 6.50% 11/1/39 | 2,500,000 | 4,211,850 | ||||||
Nevada State Department of Business & Industry | ||||||||
(Green Fulcrum Sierra Biofuels Project) 144A 6.25% 12/15/37 (AMT)# | 2,500,000 | 2,981,625 | ||||||
New Jersey Economic Development Authority Special Facility Revenue | ||||||||
(Continental Airlines Project) | ||||||||
5.25% 9/15/29 (AMT) | 4,000,000 | 4,402,000 | ||||||
Series B 5.625% 11/15/30 (AMT) | 1,270,000 | 1,472,971 | ||||||
New Jersey Tobacco Settlement Financing Corporation | ||||||||
Series B 5.00% 6/1/46 | 4,440,000 | 5,233,206 | ||||||
New York Liberty Development Corporation Revenue | ||||||||
(Goldman Sachs Headquarters Issue) 5.25% 10/1/35 | 7,000,000 | 10,122,070 | ||||||
Pennsylvania Economic Development Financing Authority | ||||||||
(CarbonLite P, LLC Project) 144A 5.75% 6/1/36 (AMT)# | 7,625,000 | 8,329,093 |
37
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Corporate Revenue Bonds(continued) | ||||||||
Pennsylvania Economic Development Financing Authority | ||||||||
(National Gypsum) 5.50% 11/1/44 (AMT) | 4,500,000 | $ | 4,867,650 | |||||
Pima County, Arizona Industrial Development Authority Pollution Control Revenue | ||||||||
(Tucson Electric Power) Series A 5.25% 10/1/40 | 500,000 | 511,380 | ||||||
Port of Seattle, Washington Industrial Development Corporation Special Facilities Revenue | ||||||||
(Delta Airlines) 5.00% 4/1/30 (AMT) | 2,000,000 | 2,200,560 | ||||||
Public Authority for Colorado Energy Natural Gas Revenue | ||||||||
Series 28 6.50% 11/15/38 | 2,000,000 | 3,256,360 | ||||||
Salt Verde, Arizona Financial Senior Gas Revenue | ||||||||
5.00% 12/1/37 | 9,250,000 | 13,254,140 | ||||||
5.25% 12/1/27 | 2,235,000 | 2,828,616 | ||||||
5.25% 12/1/28 | 1,050,000 | 1,357,041 | ||||||
5.50% 12/1/29 | 765,000 | 1,023,868 | ||||||
Shoals, Indiana | ||||||||
(National Gypsum Co. Project) 7.25% 11/1/43 (AMT) | 1,625,000 | 1,813,646 | ||||||
Tennessee State Energy Acquisition Gas Revenue | ||||||||
Series A 4.00% 5/1/48● | 720,000 | 784,793 | ||||||
Series C 5.00% 2/1/27 | 2,940,000 | 3,581,890 | ||||||
TSASC, New York | ||||||||
Series A 5.00% 6/1/41 | 705,000 | 818,061 | ||||||
Tulsa, Oklahoma Municipal Airports Improvement Trust Revenue | ||||||||
Series A 5.50% 6/1/35 (AMT) | 2,000,000 | 2,221,260 | ||||||
(American Airlines) 5.00% 6/1/35 (AMT)● | 3,000,000 | 3,443,850 | ||||||
Valparaiso, Indiana | ||||||||
(Pratt Paper LLC Project) 7.00% 1/1/44 (AMT) | 2,865,000 | 3,401,872 | ||||||
Virginia Tobacco Settlement Financing Corporation | ||||||||
SeriesB-1 5.00% 6/1/47 | 2,000,000 | 2,045,060 | ||||||
Series C 2.419% 6/1/47 ^ | 66,475,000 | 12,364,350 | ||||||
Series D 2.567% 6/1/47 ^ | 151,255,000 | 25,855,530 | ||||||
Washington Economic Development Finance Authority Revenue | ||||||||
(Columbia Pulp I, LLC Project) Series 2017A 144A 7.50% 1/1/32 (AMT)# | 4,800,000 | 5,004,960 | ||||||
|
| |||||||
405,023,300 | ||||||||
|
| |||||||
Education Revenue Bonds – 16.77% | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(ACCEL Schools Project) Series A 144A 5.25% 8/1/48 # | 3,200,000 | 3,526,432 | ||||||
(American Charter Schools Foundation Project) 144A 6.00% 7/1/37 # | 775,000 | 925,761 |
38
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(American Charter Schools Foundation Project) 144A 6.00% 7/1/47 # | 4,735,000 | $ | 5,581,097 | |||||
(Basis Schools Projects) | ||||||||
Series A 144A 5.125% 7/1/37 # | 750,000 | 863,587 | ||||||
Series A 144A 5.375% 7/1/50 # | 1,000,000 | 1,147,080 | ||||||
(Kaizen Education Foundation Project) 144A 5.80% 7/1/52 # | 4,000,000 | 4,501,000 | ||||||
(Pinecrest Academy Nevada-Horizon, Inspirada) Series A 144A 5.75% 7/15/48 # | 2,250,000 | 2,661,863 | ||||||
Arlington, Texas Higher Education Finance | ||||||||
(Leadership Preparatory School) | ||||||||
Series A 5.00% 6/15/36 | 700,000 | 716,933 | ||||||
Series A 5.00% 6/15/46 | 1,325,000 | 1,352,838 | ||||||
Build NYC Resource, New York | ||||||||
5.00% 11/1/39 | 1,000,000 | 1,076,430 | ||||||
(Inwood Academy for Leadership Charter School Project) | ||||||||
Series A 144A 5.125% 5/1/38 # | 575,000 | 679,271 | ||||||
Series A 144A 5.50% 5/1/48 # | 1,500,000 | 1,783,950 | ||||||
(New Dawn Charter Schools Project) | ||||||||
144A 5.625% 2/1/39 # | 1,290,000 | 1,407,132 | ||||||
144A 5.75% 2/1/49 # | 2,700,000 | 2,934,603 | ||||||
Burbank, Illinois | ||||||||
(Intercultural Montessori Language) 144A 6.25% 9/1/45 # | 4,000,000 | 4,528,400 | ||||||
California Educational Facilities Authority Revenue | ||||||||
(Stanford University) SeriesV-1 5.00% 5/1/49 | 19,050,000 | 32,447,103 | ||||||
California Municipal Finance Authority Revenue | ||||||||
(California Baptist University) Series A 144A 5.50% 11/1/45 # | 4,000,000 | 4,703,520 | ||||||
(Julian Charter School Project) Series A 144A 5.625% 3/1/45 # | 5,250,000 | 5,562,060 | ||||||
(Partnership Uplift Community Project) Series A 5.25% 8/1/42 | 1,700,000 | 1,799,671 | ||||||
(Santa Rosa Academy Project) Series A 6.00% 7/1/42 | 1,250,000 | 1,354,500 | ||||||
(Southwestern Law School) 6.50% 11/1/41 | 1,500,000 | 1,641,870 | ||||||
California School Finance Authority | ||||||||
(Aspire Public Schools) | ||||||||
Series A 144A 5.00% 8/1/35 # | 585,000 | 673,347 | ||||||
Series A 144A 5.00% 8/1/40 # | 605,000 | 690,729 | ||||||
(Encore Education Obligated Group) Series A 144A 5.00% 6/1/52 # | 1,000,000 | 908,060 |
39
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
California School Finance Authority | ||||||||
(Escuela Popular Project) 144A 6.50% 7/1/50 # | 2,750,000 | $ | 2,948,000 | |||||
(New Designs Charter School) Series A 5.50% 6/1/42 | 1,750,000 | 1,870,155 | ||||||
(View Park Elementary & Middle Schools) | ||||||||
Series A 5.875% 10/1/44 | 1,000,000 | 1,136,300 | ||||||
Series A 6.00% 10/1/49 | 720,000 | 820,318 | ||||||
California State University | ||||||||
(Systemwide) | ||||||||
Series A 5.00% 11/1/26 | 2,000,000 | 2,553,740 | ||||||
Series A 5.00% 11/1/27 | 2,300,000 | 2,982,824 | ||||||
California Statewide Communities Development Authority Charter School Revenue | ||||||||
(Green Dot Public Schools) Series A 7.25% 8/1/41 | 1,915,000 | 2,060,291 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Lancer Educational Student Housing Project) Series A 144A 5.00% 6/1/46 # | 1,500,000 | 1,715,505 | ||||||
Capital Trust Agency, Florida | ||||||||
(Pineapple Cove Classical Academy Inc. Project) | ||||||||
Series A 144A 5.375% 7/1/54 # | 6,000,000 | 6,598,800 | ||||||
(River City Education Services Project) | ||||||||
Series A 5.375% 2/1/35 | 870,000 | 916,562 | ||||||
Series A 5.625% 2/1/45 | 1,500,000 | 1,582,815 | ||||||
(University Bridge, LLC Student Housing Project) | ||||||||
Series A 144A 5.25% 12/1/58 # | 8,000,000 | 8,801,360 | ||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(Charter School - Community Leadership Academy) 7.45% 8/1/48 | 2,000,000 | 2,280,880 | ||||||
(Charter School - Loveland Classical School) 144A 5.00% 7/1/46 # | 1,500,000 | 1,633,755 | ||||||
(Skyview Charter School) 144A 5.375% 7/1/44 # | 500,000 | 539,405 | ||||||
(Windsor Charter Academy Project) Series 2016 144A 5.00% 9/1/36 # | 1,000,000 | 1,022,390 | ||||||
Columbia Heights, Minnesota Charter School Lease Revenue | ||||||||
(Prodeo Academy Project) | ||||||||
Series A 5.00% 7/1/49 | 1,000,000 | 1,072,330 | ||||||
Series A 5.00% 7/1/54 | 1,000,000 | 1,062,350 | ||||||
East Hempfield Township, Pennsylvania Industrial Development Authority | ||||||||
(Student Services Income - Student Housing Project) 5.00% 7/1/30 | 1,000,000 | 1,113,550 |
40
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
Hawaii State Department of Budget & Finance | ||||||||
(Hawaii Pacific University) Series A 6.875% 7/1/43 | 2,000,000 | $ | 2,156,020 | |||||
Henderson, Nevada Public Improvement Trust | ||||||||
(Touro College & University System) | ||||||||
Series A 5.50% 1/1/39 | 460,000 | 527,891 | ||||||
Series A 5.50% 1/1/44 | 2,000,000 | 2,282,440 | ||||||
Idaho Housing & Finance Association | ||||||||
(Idaho Arts Charter School) 144A 5.00% 12/1/36 # | 715,000 | 807,307 | ||||||
(North Star Charter School) | ||||||||
Capital Appreciation Subordinate Series B 144A 4.88% 7/1/49 #^ | 2,888,155 | 653,821 | ||||||
Series A 6.75% 7/1/48 | 529,150 | 585,668 | ||||||
(Xavier Charter School Project) Series A 5.00% 6/1/50 | 1,000,000 | 1,116,550 | ||||||
Illinois Finance Authority Charter School Revenue | ||||||||
(Chicago International Charter School Project) 5.00% 12/1/47 | 2,805,000 | 3,194,250 | ||||||
(Uno Charter School) Series A 7.125% 10/1/41 | 1,000,000 | 1,061,640 | ||||||
Illinois Finance Authority Revenue | ||||||||
(Lake Forest College) Series A 6.00% 10/1/48 | 1,000,000 | 1,080,000 | ||||||
(Rogers Park Montessori) | ||||||||
6.00% 2/1/34 | 675,000 | 748,393 | ||||||
6.125% 2/1/45 | 1,800,000 | 1,980,918 | ||||||
Illinois Finance Authority Student Housing & Academic Facility Revenue | ||||||||
(University of Illinois at Chicago Project) Series A 5.00% 2/15/47 | 3,500,000 | 4,073,580 | ||||||
Illinois Finance Authority Student Housing Revenue | ||||||||
(Dekalb II - Northern Illinois University Project) 6.875% 10/1/43 | 1,000,000 | 1,056,860 | ||||||
Indiana State Finance Authority Revenue Educational Facilities | ||||||||
(Drexel Foundation - Thea Bowman Academy Charter School) Series A | 1,000,000 | 1,001,860 | ||||||
Kanawha, West Virginia | ||||||||
(West Virginia University Foundation Project) 6.75% 7/1/45 | 2,500,000 | 2,731,600 | ||||||
Kent County, Delaware Student Housing and Dining Facilities Revenue | ||||||||
(Delaware State University Project) Series A 5.00% 7/1/58 | 1,250,000 | 1,418,550 | ||||||
Louisiana Public Facilities Authority Revenue | ||||||||
(Lake Charles Charter Academy Foundation Project) 8.00% 12/15/41 | 1,500,000 | 1,608,585 |
41
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Education Revenue Bonds(continued) | ||||||||
Macon-Bibb County, Georgia Urban Development Authority Revenue (Academy for Classical Education) | ||||||||
Series A 144A 5.875% 6/15/47 # | 1,680,000 | $ | 1,720,270 | |||||
Series A 144A 6.00% 6/15/52 # | 1,530,000 | 1,568,801 | ||||||
Miami-Dade County, Florida Industrial Development Authority | ||||||||
(YouthCo-Op Charter School) | ||||||||
Series A 144A 5.75% 9/15/35 # | 1,000,000 | 1,073,260 | ||||||
Series A 144A 6.00% 9/15/45 # | 1,000,000 | 1,071,720 | ||||||
Michigan Finance Authority Limited Obligation Revenue | ||||||||
(Public School Academy Old Redford) Series A 6.50% 12/1/40 | 900,000 | 909,324 | ||||||
Michigan Public Educational Facilities Authority Revenue | ||||||||
(Limited-Obligation-Landmark Academy) 7.00% 12/1/39 | 950,000 | 950,921 | ||||||
Nevada State Department of Business & Industry | ||||||||
(Somerset Academy) | ||||||||
Series A 144A 5.00% 12/15/35 # | 1,595,000 | 1,756,908 | ||||||
Series A 144A 5.125% 12/15/45 # | 2,515,000 | 2,741,249 | ||||||
New Jersey State Higher Education Student Assistance | ||||||||
Authority Student Loan Revenue | ||||||||
Series 1B 5.75% 12/1/39 (AMT) | 1,250,000 | 1,392,063 | ||||||
New York State Dormitory Authority | ||||||||
(Touro College & University System) Series A 5.50% 1/1/44 | 2,875,000 | 3,300,270 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue | ||||||||
(Foundation Indiana University) Series A 1.929% 7/1/39 (AGC)● | 2,400,000 | 2,293,128 | ||||||
Philadelphia, Pennsylvania Authority for Industrial Development Revenue | ||||||||
(1st Philadelphia Preparatory) Series A 7.25% 6/15/43 | 1,230,000 | 1,433,737 | ||||||
(Global Leadership Academy Project) 6.375% 11/15/40 | 1,000,000 | 1,021,320 | ||||||
(Green Woods Charter School Project) Series A 5.75% 6/15/42 | 1,600,000 | 1,687,616 | ||||||
(Tacony Academy Charter School Project) 7.00% 6/15/43 | 1,540,000 | 1,713,296 | ||||||
Phoenix, Arizona Industrial Development Authority Education Revenue | ||||||||
(Basic Schools Project) | ||||||||
Series 2015A 144A 5.00% 7/1/46 # | 4,000,000 | 4,436,760 | ||||||
Series 2016A 144A 5.00% 7/1/45 # | 2,000,000 | 2,219,440 |
42
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Education Revenue Bonds(continued) | ||||||||
Phoenix, Arizona Industrial Development Authority Education Revenue | ||||||||
(Choice Academies Project) 5.375% 9/1/32 | 1,000,000 | $ | 1,052,730 | |||||
5.625% 9/1/42 | 600,000 | 630,192 | ||||||
(Downtown Phoenix Student Housing, LLC - Arizona | ||||||||
State University Project) Series 2018A 5.00% 7/1/37 | 250,000 | 306,585 | ||||||
(Eagle College Preparatory Project) Series A 5.00% 7/1/43 | 450,000 | 470,484 | ||||||
(Rowan University Project) 5.00% 6/1/42 | 2,000,000 | 2,150,720 | ||||||
Pima County, Arizona Industrial Development Authority Education Revenue | ||||||||
(American Leadership Academy Project) 144A 5.00% 6/15/47 # | 1,630,000 | 1,696,227 | ||||||
144A 5.00% 6/15/52 # | 1,400,000 | 1,455,314 | ||||||
(Edkey Charter Schools Project) 6.00% 7/1/43 | 2,000,000 | 2,035,000 | ||||||
Pottsboro, Texas Higher Education Finance Authority Revenue | ||||||||
Series A 5.00% 8/15/36 | 655,000 | 722,806 | ||||||
Series A 5.00% 8/15/46 | 1,000,000 | 1,087,120 | ||||||
Private Colleges & Universities Authority, Georgia Revenue | ||||||||
(Mercer University) Series A 5.00% 10/1/32 | 1,005,000 | 1,061,903 | ||||||
Public Finance Authority Revenue, Wisconsin | ||||||||
(Goodwill Industries of Southern Nevada Project) | ||||||||
Series A 5.50% 12/1/38 | 2,572,956 | 2,579,002 | ||||||
Series A 5.75% 12/1/48 | 2,576,272 | 2,583,486 | ||||||
(Minnesota College of Osteopathic Medicine) | ||||||||
SeriesA-1 144A 5.50% 12/1/48 # | 125,528 | 125,528 | ||||||
Subordinate Series B 144A 7.75% 12/1/48 #• | 2,500,000 | 875,000 | ||||||
(Wilson Preparatory Academy) | ||||||||
Series A 144A 4.125% 6/15/29 # | 540,000 | 576,288 | ||||||
Series A 144A 5.00% 6/15/39 # | 500,000 | 537,570 | ||||||
Series A 144A 5.00% 6/15/49 # | 1,100,000 | 1,174,690 | ||||||
South Carolina Jobs-Economic Development Authority Educational Facilities Revenue | ||||||||
(High Point Academy Project) Series A 144A 5.75% 6/15/49 # | 5,000,000 | 5,818,000 | ||||||
St. Paul, Minnesota Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 | 2,560,000 | 2,693,222 | ||||||
(Hmong College Preparatory Academy Project) | ||||||||
Series A 5.75% 9/1/46 | 1,000,000 | 1,152,260 |
43
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
St. Paul, Minnesota Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
(Hmong College Preparatory Academy Project) | ||||||||
Series A 6.00% 9/1/51 | 3,000,000 | $ | 3,490,980 | |||||
University of Texas System Board of Regents | ||||||||
Series B 5.00% 8/15/49 | 21,400,000 | 36,101,586 | ||||||
Utah State Charter School Finance Authority Revenue | ||||||||
(Leadership Learning Academy Project) | ||||||||
Series A 144A 5.00% 6/15/39 # | 1,000,000 | 1,101,310 | ||||||
Series A 144A 5.00% 6/15/50 # | 2,200,000 | 2,385,966 | ||||||
(North Davis Preparatory) 6.375% 7/15/40 | 1,290,000 | 1,308,899 | ||||||
Wisconsin Public Finance Authority Revenue | ||||||||
(Pine Lake Preparatory) 144A 5.50% 3/1/45 # | 3,460,000 | 3,848,247 | ||||||
(Roseman University Health Sciences Project) 5.75% 4/1/42 | 2,000,000 | 2,152,280 | ||||||
Wyoming Community Development Authority Student Housing Revenue | ||||||||
(CHF-Wyoming LLC) 6.50% 7/1/43 | 1,000,000 | 1,046,430 | ||||||
Yonkers, New York Economic Development Corporation Education Revenue | ||||||||
(Charter School Educational Excellence) Series A 6.25% 10/15/40 | 595,000 | 610,220 | ||||||
|
| |||||||
268,384,628 | ||||||||
|
| |||||||
Electric Revenue Bonds – 2.50% | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.00% 7/1/42 ‡ | 7,740,000 | 6,182,325 | ||||||
Series A 5.05% 7/1/42 ‡ | 4,590,000 | 3,666,263 | ||||||
Series A 6.75% 7/1/36 ‡ | 1,500,000 | 1,228,125 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 925,000 | 741,156 | ||||||
Series AAA 5.25% 7/1/26 ‡ | 1,030,000 | 825,287 | ||||||
Series AAA 5.25% 7/1/27 ‡ | 5,330,000 | 4,270,663 | ||||||
Series AAA 5.25% 7/1/28 ‡ | 1,205,000 | 965,506 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 3,025,000 | 2,423,781 | ||||||
Series WW 5.00% 7/1/28 ‡ | 990,000 | 790,763 | ||||||
Series WW 5.25% 7/1/25 ‡ | 1,530,000 | 1,225,913 | ||||||
Series XX 4.75% 7/1/26 ‡ | 920,000 | 730,250 | ||||||
Series XX 5.25% 7/1/40 ‡ | 9,795,000 | 7,848,244 | ||||||
Series XX 5.75% 7/1/36 ‡ | 3,340,000 | 2,692,875 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 760,000 | 603,250 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 1,275,000 | 1,021,594 | ||||||
Series ZZ 5.25% 7/1/26 ‡ | 2,005,000 | 1,606,506 |
44
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Electric Revenue Bonds (continued) | ||||||||
Salt River Project Agricultural Improvement & Power District, Arizona | ||||||||
(Salt River Project) Series A 5.00% 1/1/31 | 2,520,000 | $ | 3,268,692 | |||||
|
| |||||||
40,091,193 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 24.20% | ||||||||
Abag, California Finance Authority for Nonprofit Corporations | ||||||||
(Episcopal Senior Communities) 6.125% 7/1/41 | 1,650,000 | 1,755,633 | ||||||
Alachua County, Florida Health Facilities Authority | ||||||||
(Oak Hammock University) | ||||||||
Series A 8.00% 10/1/42 | 1,000,000 | 1,145,950 | ||||||
Series A 8.00% 10/1/46 | 1,500,000 | 1,715,280 | ||||||
Allen County, Indiana Economic Development Revenue | ||||||||
(StoryPoint Fort Wayne Project) SeriesA-1 144A 6.875% 1/15/52 # | 1,650,000 | 1,830,559 | ||||||
Apple Valley, Minnesota | ||||||||
(Minnesota Senior Living LLC, Project) | ||||||||
Series B 5.00% 1/1/47 | 2,500,000 | 2,051,050 | ||||||
Series B 5.25% 1/1/37 | 440,000 | 389,114 | ||||||
Series D 7.25% 1/1/52 | 7,290,000 | 7,147,043 | ||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Great Lakes Senior Living Communities LLC Project 1st | ||||||||
Tier) Series A 5.00% 1/1/54 | 2,595,000 | 3,016,117 | ||||||
(Great Lakes Senior Living Communities LLC Project | ||||||||
2nd Tier) | ||||||||
Series B 5.00% 1/1/49 | 975,000 | 1,110,788 | ||||||
Series B 5.125% 1/1/54 | 1,130,000 | 1,294,099 | ||||||
(Great Lakes Senior Living Communities LLC Project 3rd | ||||||||
Tier) | ||||||||
Series C 144A 5.00% 1/1/49 # | 1,000,000 | 1,094,280 | ||||||
Series C 144A 5.50% 1/1/54 # | 4,000,000 | 4,529,640 | ||||||
(Great Lakes Senior Living Communities LLC Project 4th | ||||||||
Tier) Series D 144A 7.25% 1/1/54 # | 2,500,000 | 2,678,050 | ||||||
Bexar County, Texas Health Facilities Development | ||||||||
(Army Retirement Residence Foundation Project) Series 2010 5.875% 7/1/30 | 155,000 | 157,345 | ||||||
Birmingham, Alabama Special Care Facilities Financing Authority | ||||||||
(Methodist Home for the Aging) | ||||||||
5.50% 6/1/30 | 1,850,000 | 2,145,741 | ||||||
5.75% 6/1/35 | 1,500,000 | 1,735,995 | ||||||
5.75% 6/1/45 | 2,500,000 | 2,847,475 | ||||||
6.00% 6/1/50 | 2,650,000 | 3,047,394 |
45
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Butler County, Ohio Port Authority | ||||||||
(StoryPoint Fairfield Project) SeriesA-1 144A 6.50% 1/15/52 # | 650,000 | $ | 712,608 | |||||
California Health Facilities Financing Authority Revenue | ||||||||
(Kaiser Permanente) SeriesA-2 5.00% 11/1/47 | 4,870,000 | 8,036,133 | ||||||
California Municipal Finance Authority Revenue | ||||||||
(Northbay Healthcare Group) Series A 5.25% 11/1/47 | 500,000 | 589,300 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Loma Linda University Medical Center) 5.50% 12/1/54 | 13,000,000 | 15,022,540 | ||||||
Series A 144A 5.25% 12/1/56 # | 3,000,000 | 3,465,780 | ||||||
Series A 144A 5.50% 12/1/58 # | 4,600,000 | 5,567,150 | ||||||
Camden County, New Jersey Improvement Authority Revenue | ||||||||
(Cooper Health System Obligation Group) 5.75% 2/15/42 | 2,500,000 | 2,798,650 | ||||||
Capital Trust Agency, Florida | ||||||||
(Elim Senior Housing Inc. Project) 144A 5.875% 8/1/52 # | 2,500,000 | 2,667,425 | ||||||
(Tuscan Gardens Senior Living Center) Series A 7.00% 4/1/49 | 5,000,000 | 5,046,200 | ||||||
Chesterfield County, Virginia Economic Development Authority Revenue | ||||||||
(1st Mortgage – Brandermill Woods Project) 5.125% 1/1/43 | 1,030,000 | 1,061,363 | ||||||
Chesterton, Indiana | ||||||||
(StoryPoint Chesterton Project) SeriesA-1 144A 6.375% 1/15/51 # | 1,000,000 | 1,092,320 | ||||||
Cobb County, Georgia Development Authority | ||||||||
(Provident Village at Creekside Project) Series A 144A 6.00% 7/1/51 # | 3,500,000 | 3,371,865 | ||||||
Colorado Health Facilities Authority Revenue | ||||||||
(American Baptist) 8.00% 8/1/43 | 2,500,000 | 2,852,775 | ||||||
(CommonSpirit Health) SeriesA-2 4.00% 8/1/49 | 5,000,000 | 5,733,950 | ||||||
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | 500,000 | 565,090 | ||||||
(School Health Systems) Series A 5.00% 1/1/44 | 1,000,000 | 1,126,890 | ||||||
(Sunny Vista Living Center) | ||||||||
Series A 144A 5.50% 12/1/30 # | 750,000 | 848,647 | ||||||
Series A 144A 5.75% 12/1/35 # | 1,150,000 | 1,302,709 | ||||||
Series A 144A 6.125% 12/1/45 # | 1,200,000 | 1,362,564 | ||||||
Series A 144A 6.25% 12/1/50 # | 560,000 | 637,913 |
46
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Cumberland County, Pennsylvania Municipal Authority Revenue | ||||||||
(Asbury Pennsylvania Obligation Group) 5.25% 1/1/41 | 1,600,000 | $ | 1,669,888 | |||||
Cuyahoga County, Ohio Hospital Revenue | ||||||||
(The Metrohealth System) 5.25% 2/15/47 | 5,200,000 | 6,191,484 | ||||||
5.50% 2/15/52 | 4,655,000 | 5,598,708 | ||||||
5.50% 2/15/57 | 7,250,000 | 8,698,985 | ||||||
Decatur, Texas Hospital Authority | ||||||||
(Wise Regional Health Systems) | ||||||||
Series A 5.00% 9/1/34 | 1,000,000 | 1,125,910 | ||||||
Series A 5.25% 9/1/29 | 500,000 | 573,500 | ||||||
Series A 5.25% 9/1/44 | 2,000,000 | 2,233,620 | ||||||
Duluth, Minnesota Economic Development Authority Revenue | ||||||||
(St. Luke’s Hospital Authority Obligation Group) 5.75% 6/15/32 | 3,750,000 | 4,089,413 | ||||||
Florida Development Finance | ||||||||
(UF Health - Jacksonville Project) Series A 6.00% 2/1/33 | 2,375,000 | 2,657,435 | ||||||
Glendale, Arizona Industrial Development Authority Revenue | ||||||||
(Glencroft Retirement Community Project) | ||||||||
5.00% 11/15/36 | 830,000 | 915,208 | ||||||
5.25% 11/15/51 | 1,350,000 | 1,484,015 | ||||||
Guilderland, New York Industrial Development Agency | ||||||||
Series A 144A 5.875% 1/1/52 # | 6,000,000 | 6,268,320 | ||||||
Hawaii State Department of Budget & Finance Special Purpose Senior Living Revenue | ||||||||
(Hawaii Pacific Health Obligation) Series A 5.50% 7/1/43 | 2,990,000 | 3,342,521 | ||||||
(Kahala Nui) 5.25% 11/15/37 | 1,000,000 | 1,110,940 | ||||||
Hospital Facilities Authority of Multnomah County, Oregon | ||||||||
(Mirabella at South Waterfront) 5.50% 10/1/49 | 2,400,000 | 2,652,624 | ||||||
Idaho Health Facilities Authority Revenue | ||||||||
(St. Luke’s Health System Project) Series A 5.00% 3/1/33 | 485,000 | 607,026 | ||||||
(Valley Vista Care Corporation) Series A 5.00% 11/15/32 | 455,000 | 492,392 | ||||||
Illinois Finance Authority Revenue | ||||||||
(Admiral at Lake Project) 5.25% 5/15/54 | 5,600,000 | 5,971,728 | ||||||
Illinois Housing Development Authority | ||||||||
(Stonebridge of Gurnee Project) | ||||||||
Series A 144A 5.45% 1/1/46 # | 2,500,000 | 2,539,675 |
47
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Illinois Housing Development Authority | ||||||||
(Stonebridge of Gurnee Project) | ||||||||
Series A 144A 5.60% 1/1/56 # | 2,630,000 | $ | 2,682,100 | |||||
Indiana Finance Authority Revenue | ||||||||
(King’s Daughters Hospital & Health) | ||||||||
5.50% 8/15/40 | 1,000,000 | 1,019,380 | ||||||
5.50% 8/15/45 | 1,000,000 | 1,018,570 | ||||||
(Marquette Project) 5.00% 3/1/39 | 1,250,000 | 1,315,337 | ||||||
Iowa Finance Authority | ||||||||
(PHS Council Bluffs Project) | ||||||||
5.125% 8/1/48 | 1,650,000 | 1,760,913 | ||||||
5.25% 8/1/55 | 2,500,000 | 2,672,150 | ||||||
(Sunrise Retirement Community) 5.75% 9/1/43 | 2,500,000 | 2,540,525 | ||||||
Kalispell, Montana | ||||||||
(Immanuel Lutheran Corporation Project) Series A 5.25% 5/15/47 | 1,300,000 | 1,424,371 | ||||||
Kentucky Economic Development Finance Authority Healthcare Revenue | ||||||||
(Rosedale Green Project) | ||||||||
5.50% 11/15/35 | 1,310,000 | 1,449,960 | ||||||
5.75% 11/15/45 | 2,500,000 | 2,758,350 | ||||||
5.75% 11/15/50 | 1,600,000 | 1,761,024 | ||||||
Kentwood, Michigan Economic Development Corporation Revenue | ||||||||
(Limited Obligation - Holland Home) 5.625% 11/15/41 | 1,250,000 | 1,343,375 | ||||||
Kirkwood, Missouri Industrial Development Authority | ||||||||
(Aberdeen Heights) Series A 5.25% 5/15/50 | 6,000,000 | 6,931,140 | ||||||
Louisiana Local Government Environmental Facilities & | ||||||||
Community Development Authority Revenue | ||||||||
(The Glen Retirement System Project) | ||||||||
Series A 5.00% 1/1/49 | 2,500,000 | 2,661,300 | ||||||
Series A 5.00% 1/1/55 | 2,635,000 | 2,783,034 | ||||||
Lucas County, Ohio Health Care Facilities Revenue | ||||||||
(Sunset Retirement Communities) 5.50% 8/15/30 | 1,000,000 | 1,056,460 | ||||||
Maine Health & Higher Educational Facilities Authority Revenue | ||||||||
(Maine General Medical Center) 6.75% 7/1/41 | 1,700,000 | 1,810,857 | ||||||
Maricopa County, Arizona Industrial Development Authority | ||||||||
(Christian Care Surprise Project) Series 2016 144A 6.00% 1/1/48 # | 5,400,000 | 5,842,044 | ||||||
Maryland Health & Higher Educational Facilities Authority | ||||||||
(Adventist Healthcare) Series A 5.50% 1/1/46 | 5,000,000 | 6,093,200 |
48
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Michigan State Strategic Fund Limited Revenue | ||||||||
(Evangelical Homes) 5.50% 6/1/47 | 2,750,000 | $ | 2,899,847 | |||||
Missouri State Health & Educational Facilities Authority Revenue | ||||||||
(Lutheran Senior Services) 6.00% 2/1/41 | 1,000,000 | 1,045,100 | ||||||
Montgomery County, Pennsylvania Industrial Development Authority Revenue | ||||||||
(Whitemarsh Continuing Care) | ||||||||
5.25% 1/1/40 | 1,550,000 | 1,658,779 | ||||||
5.375% 1/1/50 | 6,250,000 | 6,668,750 | ||||||
Series A 5.375% 1/1/51 | 1,750,000 | 1,895,565 | ||||||
Moon, Pennsylvania Industrial Development Authority | ||||||||
(Baptist Homes Society Obligation) 6.125% 7/1/50 | 8,500,000 | 9,392,755 | ||||||
National Finance Authority Revenue, New Hampshire | ||||||||
(The Vista Project) | ||||||||
Series A 144A 5.25% 7/1/39 # | 1,265,000 | 1,401,266 | ||||||
Series A 144A 5.625% 7/1/46 # | 1,000,000 | 1,117,970 | ||||||
Series A 144A 5.75% 7/1/54 # | 2,000,000 | 2,239,620 | ||||||
New Hampshire Health & Education Facilities Authority | ||||||||
(Rivermeade) Series A 6.875% 7/1/41 | 1,380,000 | 1,448,655 | ||||||
New Hope, Texas Cultural Education Facilities Finance | ||||||||
(Cardinal Bay - Village on the Park) | ||||||||
Series A1 5.00% 7/1/46 | 660,000 | 729,524 | ||||||
Series A1 5.00% 7/1/51 | 1,595,000 | 1,753,415 | ||||||
Series B 4.00% 7/1/31 | 635,000 | 662,019 | ||||||
Series B 4.75% 7/1/51 | 1,915,000 | 2,011,976 | ||||||
Series C 5.00% 7/1/31 | 250,000 | 268,613 | ||||||
Series C 5.25% 7/1/36 | 350,000 | 377,062 | ||||||
Series C 5.50% 7/1/46 | 1,250,000 | 1,342,987 | ||||||
Series C 5.75% 7/1/51 | 1,000,000 | 1,082,400 | ||||||
Series D 6.00% 7/1/26 | 120,000 | 123,727 | ||||||
Series D 7.00% 7/1/51 | 1,350,000 | 1,429,515 | ||||||
(Legacy Midtown Park Project) Series A 5.50% 7/1/54 | 2,500,000 | 2,679,550 | ||||||
New Jersey Economic Development Authority | ||||||||
(Black Horse EHT Urban Renewal LLC Project) Series A 144A | 3,125,000 | 3,235,531 | ||||||
(Lions Gate Project) 5.25% 1/1/44 | 2,000,000 | 2,107,400 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue | ||||||||
(Barnabas Health Services) Series A 4.00% 7/1/26 | 980,000 | 1,046,807 | ||||||
(St. Peters University Hospital) 6.25% 7/1/35 | 2,700,000 | 2,851,902 |
49
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
New York State Dormitory Authority | ||||||||
(Orange Regional Medical Center) 144A 5.00% 12/1/40 # | 1,100,000 | $ | 1,267,189 | |||||
144A 5.00% 12/1/45 # | 800,000 | 915,896 | ||||||
Northampton County, Pennsylvania Industrial Development Authority Revenue | ||||||||
(Morningstar Senior Living) 5.00% 7/1/36 | 2,000,000 | 2,110,920 | ||||||
Orange County, New York Funding Corporation Assisted Living Residence Revenue | ||||||||
6.50% 1/1/46 | 3,700,000 | 3,828,649 | ||||||
Palm Beach County, Florida Health Facilities Authority | ||||||||
(Sinai Residences Boca Raton Project) | ||||||||
Series A 7.25% 6/1/34 | 285,000 | 324,207 | ||||||
Series A 7.50% 6/1/49 | 2,920,000 | 3,313,266 | ||||||
Payne County, Oklahoma Economic Development Authority | ||||||||
(Epworth Living at the Ranch) Series A 7.00% 11/1/51 ‡ | 961,600 | 2,404 | ||||||
Pennsylvania Economic Development Financing Authority | ||||||||
(Tapestry Moon Senior Housing Project) Series 2018A 144A 6.75% 12/1/53 # | 9,495,000 | 9,868,248 | ||||||
Prince George’s County, Maryland | ||||||||
(Collington Episcopal Life Care Community) 5.25% 4/1/47 | 2,000,000 | 2,217,680 | ||||||
Public Finance Authority, Wisconsin | ||||||||
(Bancroft Neurohealth Project) | ||||||||
Series A 144A 5.00% 6/1/36 # | 960,000 | 1,055,347 | ||||||
Series A 144A 5.125% 6/1/48 # | 1,375,000 | 1,501,706 | ||||||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | ||||||||
(Auxilio Mutuo) Series A 6.00% 7/1/33 | 5,630,000 | 5,875,524 | ||||||
Rochester, Minnesota | ||||||||
(The Homestead at Rochester) Series A 6.875% 12/1/48 | 2,500,000 | 2,746,525 | ||||||
Salem, Oregon Hospital Facility Authority Revenue | ||||||||
(Capital Manor) 6.00% 5/15/47 | 1,500,000 | 1,623,990 | ||||||
San Buenaventura, California Revenue | ||||||||
(Community Memorial Health System) 7.50% 12/1/41 | 4,475,000 | 4,881,643 | ||||||
Seminole County, Florida Industrial Development Authority Revenue | ||||||||
(Legacy Pointe at UCF Project) | ||||||||
Series A 5.50% 11/15/49 | 1,500,000 | 1,584,135 | ||||||
Series A 5.75% 11/15/54 | 6,000,000 | 6,356,220 |
50
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue | ||||||||
(The Farms at Bailey Station Project) 5.75% 10/1/59 | 4,145,000 | $ | 4,252,190 | |||||
Southeastern Ohio Port Authority | ||||||||
(Memorial Health Systems) 5.00% 12/1/43 | 805,000 | 879,076 | ||||||
5.50% 12/1/43 | 1,250,000 | 1,398,413 | ||||||
St. Louis County, Missouri Industrial Development Authority | ||||||||
(Nazareth Living Center Project) | ||||||||
Series A 5.00% 8/15/35 | 600,000 | 665,964 | ||||||
Series A 5.125% 8/15/45 | 1,800,000 | 1,983,348 | ||||||
Suffolk County, New York Economic Development Corporation Revenue | ||||||||
(Peconic Landing Southland) 6.00% 12/1/40 | 575,000 | 597,316 | ||||||
Tarrant County, Texas Cultural Education Facilities Finance | ||||||||
(Buckingham Senior Living Community) 5.50% 11/15/45 ‡ | 3,000,000 | 2,100,000 | ||||||
(Buckner Senior Living - Ventana Project) | ||||||||
6.75% 11/15/47 | 1,850,000 | 2,234,855 | ||||||
6.75% 11/15/52 | 3,300,000 | 3,974,817 | ||||||
Tempe, Arizona Industrial Development Authority Revenue | ||||||||
(Friendship Village) Series A 6.25% 12/1/46 | 500,000 | 531,965 | ||||||
(Mirabella at ASU Project) Series A 144A 6.125% 10/1/52 # | 1,720,000 | 2,037,048 | ||||||
University of North Carolina Board of Governors | 21,855,000 | 35,230,041 | ||||||
Vermont Economic Development Authority Revenue | ||||||||
(Wake Robin Corp. Project) 5.40% 5/1/33 | 1,100,000 | 1,160,005 | ||||||
Washington State Housing Finance Commission | ||||||||
(Heron’s Key) Series A 144A 7.00% 7/1/50 # | 2,000,000 | 2,296,560 | ||||||
Westminster, Maryland | ||||||||
(Lutheran Village Millers Grant) | ||||||||
6.00% 7/1/34 | 800,000 | 901,880 | ||||||
Series A 5.00% 7/1/24 | 1,450,000 | 1,569,089 | ||||||
Series A 6.125% 7/1/39 | 750,000 | 843,128 | ||||||
Series A 6.25% 7/1/44 | 2,500,000 | 2,811,125 | ||||||
Wisconsin Health & Educational Facilities Authority | ||||||||
(Covenant Communities Project) | ||||||||
Series B 5.00% 7/1/48 | 1,000,000 | 1,086,400 | ||||||
Series C 7.00% 7/1/43 | 900,000 | 900,315 | ||||||
Series C 7.50% 7/1/53 | 1,000,000 | 1,000,430 |
51
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Wisconsin Health & Educational Facilities Authority | ||||||||
(St. Camillus Health System) | ||||||||
Series A 5.00% 11/1/46 | 2,000,000 | $ | 2,232,040 | |||||
Series A 5.00% 11/1/54 | 2,500,000 | 2,777,325 | ||||||
Wisconsin Public Finance Authority | ||||||||
(Rose Villa Project) Series A 144A 5.75% 11/15/44 # | 2,000,000 | 2,209,780 | ||||||
|
| |||||||
387,318,301 | ||||||||
|
| |||||||
Housing Revenue Bonds – 0.45% | ||||||||
California Municipal Finance Authority Mobile Home Park Revenue | ||||||||
(Caritas Affordable Housing) Senior Series A 5.25% 8/15/39 | 1,200,000 | 1,370,748 | ||||||
(Caritas Projects) Senior Series A 5.50% 8/15/47 | 1,500,000 | 1,609,260 | ||||||
Independent Cities Finance Authority, California | ||||||||
Series A 5.25% 5/15/44 | 750,000 | 838,710 | ||||||
Series A 5.25% 5/15/49 | 3,000,000 | 3,348,450 | ||||||
|
| |||||||
7,167,168 | ||||||||
|
| |||||||
Lease Revenue Bonds – 4.28% | ||||||||
California Municipal Finance Authority Revenue | ||||||||
(Goodwill Industry Sacramento Valley) 5.25% 1/1/45 | 1,295,000 | 1,333,811 | ||||||
(Goodwill Industry Sacramento Valley and Northern | ||||||||
Nevada Project) | ||||||||
Series A 144A 6.625% 1/1/32 # | 500,000 | 526,310 | ||||||
Series A 144A 6.875% 1/1/42 # | 1,500,000 | 1,583,865 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Lancer Plaza Project) 5.875% 11/1/43 | 1,875,000 | 2,132,344 | ||||||
Industrial Development Authority of Phoenix, Arizona | 1,000,000 | 1,038,890 | ||||||
5.375% 2/1/41 | 1,300,000 | 1,352,000 | ||||||
Metropolitan Pier & Exposition Authority, Illinois | ||||||||
(McCormick Place Expansion Project) | ||||||||
Series A 4.00% 6/15/50 | 5,700,000 | 6,456,276 | ||||||
Series A 5.00% 6/15/50 | 4,360,000 | 5,350,548 | ||||||
Series A 5.00% 6/15/57 | 3,975,000 | 4,690,222 | ||||||
New Jersey Economic Development Authority Special Facility Revenue | ||||||||
Series WW 5.25% 6/15/30 | 5,000,000 | 5,924,550 | ||||||
New Jersey Transportation Trust Fund Authority | ||||||||
(Federal Highway Reimbursement Revenue) Series A 5.00% 6/15/31 | 5,450,000 | 6,522,941 |
52
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Lease Revenue Bonds(continued) | ||||||||
New Jersey Transportation Trust Fund Authority | ||||||||
(Transportation Program) | ||||||||
Series AA 5.00% 6/15/25 | 1,000,000 | $ | 1,185,200 | |||||
Series AA 5.00% 6/15/44 | 4,975,000 | 5,599,363 | ||||||
Series AA 5.25% 6/15/41 | 1,000,000 | 1,162,390 | ||||||
New York Liberty Development Revenue | ||||||||
(Class2-3 World Trade Center Project) 144A | ||||||||
5.375% 11/15/40 # | 2,410,000 | 2,768,391 | ||||||
(Class3-3 World Trade Center Project) 144A | ||||||||
7.25% 11/15/44 # | 9,600,000 | 11,538,912 | ||||||
Public Finance Authority, Wisconsin Airport Facilities Revenue | ||||||||
(AFCO Investors II Portfolio) 144A | ||||||||
5.75% 10/1/31 (AMT)# | 3,775,000 | 3,962,391 | ||||||
(Senior Obligation Group) Series B 5.00% 7/1/42 (AMT) | 4,000,000 | 4,282,960 | ||||||
Wise County, Texas | ||||||||
(Parker County Junior College District) 8.00% 8/15/34 | 1,000,000 | 1,070,110 | ||||||
|
| |||||||
68,481,474 | ||||||||
|
| |||||||
Local General Obligation Bonds – 2.93% | ||||||||
Chicago, Illinois | ||||||||
Series 2005D 5.50% 1/1/37 | 2,280,000 | 2,659,438 | ||||||
Series 2005D 5.50% 1/1/40 | 3,000,000 | 3,480,120 | ||||||
Series 2007E 5.50% 1/1/42 | 2,150,000 | 2,486,367 | ||||||
Series 2007F 5.50% 1/1/42 | 1,250,000 | 1,445,575 | ||||||
Series A 5.25% 1/1/29 | 4,415,000 | 5,008,773 | ||||||
Series A 5.50% 1/1/33 | 2,000,000 | 2,343,200 | ||||||
Series A 5.50% 1/1/49 | 770,000 | 960,937 | ||||||
Series A 6.00% 1/1/38 | 6,285,000 | 7,921,551 | ||||||
Series C 5.00% 1/1/26 | 2,105,000 | 2,484,742 | ||||||
Chicago, Illinois Board of Education | ||||||||
Series A 144A 7.00% 12/1/46 # | 2,500,000 | 3,363,325 | ||||||
Series G 5.00% 12/1/44 | 2,445,000 | 2,927,912 | ||||||
Series H 5.00% 12/1/36 | 3,405,000 | 4,146,779 | ||||||
Series H 5.00% 12/1/46 | 4,225,000 | 5,046,847 | ||||||
Wake County, North Carolina | ||||||||
Series A 5.00% 3/1/28 | 2,000,000 | 2,637,480 | ||||||
|
| |||||||
46,913,046 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 4.12% | ||||||||
Arlington, Texas Higher Education Finance | ||||||||
(Arlington Classic Academy) 7.65%8/15/40-20§ | 1,000,000 | 1,029,870 |
53
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
Bexar County, Texas Health Facilities Development | ||||||||
(Army Retirement Residence Foundation Project) Series | ||||||||
2010 5.875%7/1/30-20§ | 845,000 | $ | 858,799 | |||||
California Municipal Finance Authority Revenue | ||||||||
(Azusa Pacific University Project) Series B 144A | ||||||||
7.75%4/1/31-21#§ | 750,000 | 803,565 | ||||||
(Eisenhower Medical Center) Series A 5.75%7/1/40-20§ | 1,000,000 | 1,016,530 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(California Baptist University Project) 7.50%11/1/41-21§ | 1,000,000 | 1,112,450 | ||||||
Central Texas Regional Mobility Authority Revenue | ||||||||
Senior Lien 6.00%1/1/41-21§ | 1,890,000 | 1,970,419 | ||||||
Subordinate Lien 6.75%1/1/41-21§ | 1,000,000 | 1,048,210 | ||||||
Clifton, Texas Higher Education Finance Corporation Revenue | ||||||||
(Idea Public Schools) 5.75%8/15/41-21§ | 1,000,000 | 1,071,670 | ||||||
(Uplift Education) Series A 6.25%12/1/45-20§ | 1,000,000 | 1,039,740 | ||||||
District of Columbia Revenue | ||||||||
(Center of Strategic & International Studies) | ||||||||
6.625%3/1/41-21§ | 2,235,000 | 2,362,775 | ||||||
(KIPP Charter School) 6.00%7/1/48-23§ | 1,450,000 | 1,697,095 | ||||||
Foothill-Eastern Transportation Corridor Agency, California | ||||||||
Series A 6.00%1/15/49-24§ | 7,690,000 | 9,258,375 | ||||||
Hawaii Pacific Health Special Purpose Revenue | ||||||||
Series A 5.50%7/1/40-20§ | 1,250,000 | 1,269,050 | ||||||
Illinois Finance Authority Revenue | ||||||||
(Admiral at Lake Project) Series A 8.00%5/15/46-20§ | 1,500,000 | 1,521,165 | ||||||
Illinois Railsplitter Tobacco Settlement Authority | ||||||||
6.00%6/1/28-21§ | 1,455,000 | 1,548,862 | ||||||
Kentucky Economic Development Finance Authority Hospital Revenue | ||||||||
(Owensboro Medical Health System) Series A | ||||||||
6.50%3/1/45-20§ | 4,965,000 | 5,032,772 | ||||||
Louisiana Public Facilities Authority Revenue | ||||||||
(Ochsner Clinic Foundation Project) 6.50%5/15/37-21§ | 1,705,000 | 1,819,951 | ||||||
Lucas County, Ohio Improvement | ||||||||
(Lutheran Homes) Series A 7.00%11/1/45-20§ | 3,865,000 | 4,019,213 | ||||||
Martin County, Florida Health Facilities Authority Revenue | ||||||||
(Martin Memorial Medical Center) 5.50%11/15/42-21§ | 1,000,000 | 1,077,950 | ||||||
Maryland Health & Higher Educational Facilities Authority | ||||||||
(Doctors Community Hospital) 5.75%7/1/38-20§ | 1,730,000 | 1,758,130 | ||||||
Nampa Development Corporation, Idaho Revenue 144A | ||||||||
5.00%9/1/31-24#§ | 2,940,000 | 3,541,818 |
54
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
New Jersey Economic Development Authority Revenue | ||||||||
(Provident Group - Montclair University Student Housing | ||||||||
Project) 5.875%6/1/42-20§ | 1,500,000 | $ | 1,518,825 | |||||
New York State | ||||||||
Series A 5.25%2/15/24-21§ | 2,000,000 | 2,087,180 | ||||||
North Texas Education Finance Revenue | ||||||||
(Uplift Education) Series A 5.25%12/1/47-22§ | 2,100,000 | 2,301,012 | ||||||
Onondaga, New York Civic Development Revenue | ||||||||
(St. Joseph’s Hospital Health Center Project) | ||||||||
4.50%7/1/32-22§ | 1,000,000 | 1,086,360 | ||||||
Oregon State Facilities Authority Revenue | ||||||||
(Concordia University Project) | ||||||||
Series A 144A 6.125%9/1/30-20#§ | 605,000 | 620,621 | ||||||
Series A 144A 6.375%9/1/40-20#§ | 500,000 | 513,525 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue | ||||||||
(Edinboro University Foundation) 5.80%7/1/30-20§ | 1,300,000 | 1,321,346 | ||||||
Philadelphia, Pennsylvania Authority for Industrial Development Revenue | ||||||||
(New Foundation Charter School Project) | ||||||||
6.625%12/15/41-22§ | 1,000,000 | 1,155,200 | ||||||
San Juan, Texas Higher Education Finance Authority Education Revenue | ||||||||
(Idea Public Schools) Series A 6.70%8/15/40-20§ | 2,000,000 | 2,052,060 | ||||||
Southwestern Illinois Development Authority Revenue | ||||||||
(Memorial Group) | ||||||||
7.125%11/1/30-23§ | 1,420,000 | 1,737,626 | ||||||
7.125%11/1/43-23§ | 2,500,000 | 3,059,200 | ||||||
St. Johns County, Florida Industrial Development Authority | ||||||||
Revenue | ||||||||
(Presbyterian Retirement) Series A 5.875%8/1/40-20§ | 1,000,000 | 1,020,480 | ||||||
Travis County, Texas Health Facilities Development Corporation Revenue | ||||||||
(Westminster Manor Project) 7.125%11/1/40-20§ | 1,000,000 | 1,040,720 | ||||||
University of Arizona Medical Center Hospital Revenue | ||||||||
6.00%7/1/39-21§ | 1,500,000 | 1,601,130 | ||||||
|
| |||||||
65,973,694 | ||||||||
|
| |||||||
Resource Recovery Revenue Bonds – 0.96% | ||||||||
Blythe Township, Pennsylvania Solid Waste Authority Revenue | ||||||||
7.75% 12/1/37 (AMT) | 3,000,000 | 3,684,210 | ||||||
Essex County, New Jersey Improvement Authority | ||||||||
144A 5.25% 7/1/45 (AMT)# | 2,500,000 | 2,532,550 |
55
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Resource Recovery Revenue Bonds(continued) | ||||||||
Orange County, Florida Industrial Development Authority Revenue | ||||||||
(Anuvia Florida LLC Project) Series A 144A | ||||||||
4.00% 7/1/48 (AMT)# | 2,665,000 | $ | 1,706,293 | |||||
Union County, New Jersey Improvement Authority | ||||||||
(Aries Linden, LLC Project) 144A 6.75% 12/1/41 (AMT)# | 7,000,000 | 7,465,080 | ||||||
|
| |||||||
15,388,133 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 9.71% | ||||||||
Allentown, Pennsylvania Neighborhood Improvement Zone | ||||||||
Development Authority Tax Revenue | ||||||||
(City Center Project) Series 2018 144A 5.375% 5/1/42 # | 3,600,000 | 4,271,616 | ||||||
Celebration Pointe, Florida Community Development District | ||||||||
5.125% 5/1/45 | 2,000,000 | 2,133,520 | ||||||
Cherry Hill, Virginia Community Development Authority | ||||||||
(Potomac Shores Project) | ||||||||
144A 5.15% 3/1/35 # | 1,000,000 | 1,075,480 | ||||||
144A 5.40% 3/1/45 # | 2,000,000 | 2,152,800 | ||||||
Conley Road Transportation Development District, Missouri | ||||||||
5.375% 5/1/47 | 5,200,000 | 5,550,116 | ||||||
Dutchess County, New York Local Development Corporation Revenue | ||||||||
(Anderson Center Services Inc. Project) 6.00% 10/1/30 | 1,600,000 | 1,635,056 | ||||||
Fountain Urban Renewal Authority, Colorado | ||||||||
(Improvement - South Academy Highland) Series A | ||||||||
5.50% 11/1/44 | 3,750,000 | 4,083,713 | ||||||
Glen Cove, New York Local Economic Assistance | ||||||||
(Garvies Point Public Improvement Project) Series A | ||||||||
5.00% 1/1/56 | 2,000,000 | 2,238,660 | ||||||
Hickory Chase Community Authority Revenue, Ohio | ||||||||
(Hickory Chase Project) Senior Series A 144A | ||||||||
5.00% 12/1/40 # | 1,410,000 | 1,570,951 | ||||||
Juban Crossing Economic Development District, Louisiana | ||||||||
(General Infrastructure Projects) Series C 144A | ||||||||
7.00% 9/15/44 # | 3,310,000 | 3,401,621 | ||||||
(Road Projects) Series A 144A 7.00% 9/15/44 # | 2,090,000 | 2,147,851 | ||||||
Kansas City, Missouri Land Clearance Redevelopment Authority Revenue | ||||||||
(Convention Centre Hotel Project - TIF Financing) | ||||||||
Series B 144A 5.00% 2/1/40 # | 935,000 | 1,082,197 | ||||||
Series B 144A 5.00% 2/1/50 # | 1,825,000 | 2,084,442 |
56
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Midtown Miami, Florida Community Development District | ||||||||
(Parking Garage Project) Series A 5.00% 5/1/37 | 1,235,000 | $ | 1,315,831 | |||||
Mobile, Alabama Improvement District | ||||||||
(McGowin Park Project) | ||||||||
Series A 5.25% 8/1/30 | 1,000,000 | 1,084,740 | ||||||
Series A 5.50% 8/1/35 | 1,300,000 | 1,410,487 | ||||||
Mosaic District, Virginia Community Development Authority Revenue | ||||||||
Series A 6.875% 3/1/36 | 1,500,000 | 1,566,030 | ||||||
New York City, New York Industrial Development Agency | ||||||||
(Pilot - Queens Baseball Stadium) | ||||||||
5.00% 1/1/22 (AMBAC) | 1,000,000 | 1,002,940 | ||||||
(Yankee Stadium) 7.00% 3/1/49 (AGC) | 1,000,000 | 1,009,860 | ||||||
Northampton County, Pennsylvania Industrial Development Authority | ||||||||
(Route 33 Project) 7.00% 7/1/32 | 2,335,000 | 2,643,617 | ||||||
Prairie Center Metropolitan District No 3, Colorado | ||||||||
Series A 144A 5.00% 12/15/41 # | 2,000,000 | 2,194,840 | ||||||
Public Finance Authority Revenue, Wisconsin | ||||||||
(American Dream @ Meadowlands Project) 144A | ||||||||
7.00% 12/1/50 # | 5,065,000 | 6,192,672 | ||||||
Puerto Rico Sales Tax Financing Revenue (Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 35,990,000 | 40,744,999 | ||||||
SeriesA-1 5.00% 7/1/58 | 32,090,000 | 36,803,058 | ||||||
SeriesA-2 4.784% 7/1/58 | 11,464,000 | 12,957,186 | ||||||
Regional Transportation, Colorado District Revenue | ||||||||
(Denver Transit Partners Eagle P3 Project) | ||||||||
6.00% 1/15/41 | 1,000,000 | 1,015,130 | ||||||
Richmond Heights, Missouri Tax Increment & Transaction | ||||||||
Sales Tax Revenue Improvement | ||||||||
(Francis Place Redevelopment Project) 5.625% 11/1/25 | 1,090,000 | 1,090,959 | ||||||
St. Louis County, Missouri Industrial Development Authority | ||||||||
(Manchester Ballas Community) | ||||||||
Series A 144A 5.00% 9/1/38 # | 1,050,000 | 1,096,452 | ||||||
Series A 144A 5.25% 9/1/45 # | 3,540,000 | 3,692,255 | ||||||
St. Louis, Missouri Industrial Development Authority Tax Increment Revenue Improvement | ||||||||
(Grand Center Redevelopment Project) 6.375% 12/1/25 | 870,000 | 871,253 |
57
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue | ||||||||
(Sales Tax Vacation Village Project) | ||||||||
Series A 6.00% 9/1/35 | 4,690,000 | $ | 5,224,332 | |||||
|
| |||||||
155,344,664 | ||||||||
|
| |||||||
State General Obligation Bonds – 7.82% | ||||||||
California State | ||||||||
Various Purposes | ||||||||
(Bid Group A) 5.00% 10/1/28 | 5,000,000 | 6,674,650 | ||||||
(Bid Group B) 5.00% 8/1/27 | 5,000,000 | 6,312,600 | ||||||
Commonwealth of Massachusetts | ||||||||
Series B 5.00% 1/1/32 | 5,000,000 | 6,433,800 | ||||||
Commonwealth of Puerto Rico | ||||||||
Series A 5.25% 7/1/31 ‡ | 6,980,000 | 5,802,125 | ||||||
Series A 5.375% 7/1/33 ‡ | 900,000 | 740,250 | ||||||
Series A 6.00% 7/1/38 ‡ | 4,520,000 | 3,796,800 | ||||||
Series A 8.00% 7/1/35 ‡ | 9,140,000 | 6,695,050 | ||||||
(Public Improvement) | ||||||||
Series A 5.00% 7/1/41 ‡ | 4,525,000 | 3,427,687 | ||||||
Series A 5.125% 7/1/37 ‡ | 3,225,000 | 2,503,406 | ||||||
Series A 5.25% 7/1/30 ‡ | 1,955,000 | 1,625,094 | ||||||
Series A 5.50% 7/1/39 ‡ | 165,000 | 130,556 | ||||||
Series C 6.00% 7/1/39 ‡ | 9,486,000 | 7,790,377 | ||||||
Series D 5.75% 7/1/41 ‡ | 11,750,000 | 9,723,125 | ||||||
Illinois State | ||||||||
5.00% 5/1/36 | 1,710,000 | 1,934,951 | ||||||
5.00% 11/1/36 | 2,245,000 | 2,685,402 | ||||||
5.00% 2/1/39 | 2,980,000 | 3,337,242 | ||||||
Series A 5.00% 10/1/30 | 2,000,000 | 2,522,180 | ||||||
Series A 5.00% 12/1/34 | 2,100,000 | 2,580,459 | ||||||
Series A 5.00% 4/1/38 | 2,805,000 | 3,082,583 | ||||||
Series C 5.00% 11/1/29 | 5,000,000 | 6,164,750 | ||||||
Series D 5.00% 11/1/28 | 6,000,000 | 7,434,960 | ||||||
Minnesota State | ||||||||
Series A 5.00% 8/1/30 | 5,000,000 | 6,607,550 | ||||||
Ohio State | ||||||||
Series A 5.00% 8/1/24 | 3,245,000 | 3,841,885 | ||||||
Series A 5.00% 3/1/26 | 5,395,000 | 6,706,902 | ||||||
(Infrastructure Improvement) Series A 5.00% 9/1/32 | 7,675,000 | 10,068,833 | ||||||
Washington State | ||||||||
(Various Purpose) Series C 5.00% 2/1/28 | 5,000,000 | 6,548,450 | ||||||
|
| |||||||
125,171,667 | ||||||||
|
|
58
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Transportation Revenue Bonds – 2.77% | ||||||||
Foothill-Eastern Transportation Corridor Agency, California | ||||||||
Series A 5.75% 1/15/46 | 5,000,000 | $ | 5,842,100 | |||||
Houston, Texas Airport System Revenue Subordinate Lien | ||||||||
Series A 5.00% 7/1/25 (AMT) | 1,000,000 | 1,053,580 | ||||||
Kentucky Public Transportation Infrastructure Authority | ||||||||
(1st Tier - Downtown Crossing) | ||||||||
Series A 5.75% 7/1/49 | 3,000,000 | 3,411,990 | ||||||
Series A 6.00% 7/1/53 | 1,290,000 | 1,480,894 | ||||||
Long Beach, California Marina Revenue | ||||||||
5.00% 5/15/40 | 1,000,000 | 1,157,590 | ||||||
Metropolitan Washington, D.C. Airports Authority Dulles Toll Road Revenue | ||||||||
(Dulles Metrorail and Capital Improvement Projects) | ||||||||
Series B 4.00% 10/1/49 | 5,000,000 | 5,861,050 | ||||||
Port Authority of New York & New Jersey Special Project | ||||||||
(JFK International Air Terminal) Series 8 6.00% 12/1/42 | 1,970,000 | 2,044,801 | ||||||
Port of Beaumont Navigation District of Jefferson County, Texas | ||||||||
(Jefferson Gulf Coast Energy Project) | ||||||||
Series A 144A 3.625% 1/1/35 (AMT)# | 2,000,000 | 2,081,320 | ||||||
Series A 144A 4.00% 1/1/50 (AMT)# | 3,875,000 | 4,035,425 | ||||||
Riverside County, California Transportation Senior Lien | ||||||||
Series A 5.75% 6/1/48 | 1,000,000 | 1,134,180 | ||||||
South Jersey Port, New Jersey | ||||||||
(Subordinated Marine Terminal Revenue) Series A | ||||||||
5.00% 1/1/49 | 1,110,000 | 1,325,629 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien | ||||||||
(LBJ Infrastructure) | ||||||||
7.00% 6/30/40 | 7,000,000 | 7,131,390 | ||||||
7.50% 6/30/33 | 500,000 | 510,720 | ||||||
(NTE Mobility) | ||||||||
6.75% 6/30/43 (AMT) | 1,905,000 | 2,234,298 | ||||||
7.00% 12/31/38 (AMT) | 1,335,000 | 1,582,055 | ||||||
Virginia Small Business Financing Authority | ||||||||
(Transform 66 P3 Project) 5.00% 12/31/56 (AMT) | 2,975,000 | 3,528,975 | ||||||
|
| |||||||
44,415,997 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 2.53% | ||||||||
Chicago, Illinois Waterworks Revenue | ||||||||
(2nd Lien) | ||||||||
5.00% 11/1/26 | 180,000 | 220,772 | ||||||
5.00% 11/1/28 | 30,000 | 36,247 |
59
Table of Contents
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Water & Sewer Revenue Bonds(continued) | ||||||||
Dominion, Colorado Water & Sanitation District Revenue | ||||||||
6.00% 12/1/46 | 4,000,000 | $ | 4,301,040 | |||||
Jefferson County, Alabama Sewer Revenue | ||||||||
(Senior Lien-Warrants) Series A 5.50% 10/1/53 (AGM) | 2,500,000 | 2,912,625 | ||||||
(Sub Lien-Warrants) | ||||||||
Series D 6.50% 10/1/53 | 16,500,000 | 20,020,440 | ||||||
Series D 7.00% 10/1/51 | 5,000,000 | 6,159,250 | ||||||
Texas Water Development Board | ||||||||
(Master Trust) Series B 5.00% 4/15/31 | 5,240,000 | 6,860,051 | ||||||
|
| |||||||
40,510,425 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $1,505,678,435) | 1,670,183,690 | |||||||
|
| |||||||
Total Value of Securities – 104.35% | $ | 1,670,183,690 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $347,047,855, which represents 21.68% of the Fund’s net assets. See Note 7 in “Notes to financial statements.” |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 7 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Feb. 29, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
60
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Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by the AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
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Statements of assets and liabilities | ||
February 29, 2020 (Unaudited) |
Delaware Tax-Free USA Fund | Delaware Tax-Free USA | Delaware National High-Yield | ||||||||||
Assets: | ||||||||||||
Investments, at value1 | $689,434,603 | $573,295,553 | $1,670,183,690 | |||||||||
Cash | — | 151,334 | — | |||||||||
Receivable for securities sold | 15,168,964 | 3,264,960 | 10,389,298 | |||||||||
Interest receivable | 6,892,312 | 5,913,059 | 16,628,965 | |||||||||
Receivable for fund shares sold | 936,954 | 2,328,946 | 7,490,721 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 712,432,833 | 584,953,852 | 1,704,692,674 | |||||||||
|
|
|
|
|
| |||||||
Liabilities: | ||||||||||||
Cash due to custodian | 14,703,406 | — | 10,341,718 | |||||||||
Payable for securities purchased | 40,161,251 | 10,719,812 | 89,192,366 | |||||||||
Payable for fund shares redeemed | 1,075,496 | 996,046 | 2,391,109 | |||||||||
Distribution payable | 336,020 | 265,299 | 989,458 | |||||||||
Other accrued expenses | 212,898 | 192,459 | 574,833 | |||||||||
Investment management fees payable to affiliates | 212,827 | 154,179 | 565,421 | |||||||||
Distribution fees payable to affiliates | 104,189 | 28,990 | 116,237 | |||||||||
Dividend disbursing and transfer agent fees and expense payable to affiliates | 4,415 | 3,864 | 10,647 | |||||||||
Accounting and administration expenses payable to affiliates | 2,013 | 1,801 | 4,408 | |||||||||
Trustees’ fees and expenses payable to affiliates | 2,007 | 1,749 | 4,804 | |||||||||
Legal fees payable to affiliates | 931 | 812 | 2,229 | |||||||||
Reports and statements to shareholders expenses payable to affiliates | 389 | 339 | 931 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 56,815,842 | 12,365,350 | 104,194,161 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $655,616,991 | $572,588,502 | $1,600,498,513 | |||||||||
|
|
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||||
Paid-in capital | $587,415,490 | $522,259,357 | $1,437,579,040 | |||||||||
Total distributable earnings (loss) | 68,201,501 | 50,329,145 | 162,919,473 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $655,616,991 | $572,588,502 | $1,600,498,513 | |||||||||
|
|
|
|
|
|
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Delaware | Delaware | Delaware | ||||||||||
Tax-Free | Tax-Free USA | National High-Yield | ||||||||||
USA Fund | Intermediate Fund | Municipal Bond Fund | ||||||||||
Net Asset Value | ||||||||||||
Class A: | ||||||||||||
Net assets | $ | 482,515,142 | $ | 112,962,052 | $ | 230,807,816 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 39,272,032 | 9,012,920 | 19,406,957 | |||||||||
Net asset value per share | $ | 12.29 | $ | 12.53 | $ | 11.89 | ||||||
Sales charge | 4.50 | % | 2.75 | % | 4.50 | % | ||||||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ | 12.87 | $ | 12.88 | $ | 12.45 | ||||||
Class C: | ||||||||||||
Net assets | $ | 15,126,201 | $ | 19,240,007 | $ | 92,231,449 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 1,230,921 | 1,536,116 | 7,723,959 | |||||||||
Net asset value per share | $ | 12.29 | $ | 12.53 | $ | 11.94 | ||||||
Institutional Class: | ||||||||||||
Net assets | $ | 157,975,648 | $ | 440,386,443 | $ | 1,277,459,248 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 12,761,604 | 34,801,053 | 106,427,545 | |||||||||
Net asset value per share | $ | 12.38 | $ | 12.65 | $ | 12.00 | ||||||
| ||||||||||||
1Investments, at cost | $ | 624,238,211 | $ | 521,938,828 | $ | 1,505,678,435 |
See accompanying notes, which are an integral part of the financial statements.
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Statements of operations | ||
Six months ended February 29, 2020 (Unaudited) |
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||
Investment Income: | ||||||||||||
Interest | $12,440,567 | $9,544,104 | $34,768,604 | |||||||||
|
|
|
|
|
| |||||||
Expenses: | ||||||||||||
Management fees | 1,679,909 | 1,352,378 | 3,669,579 | |||||||||
Distribution expenses – Class A | 574,518 | 145,688 | 267,158 | |||||||||
Distribution expenses – Class C | 72,143 | 100,789 | 440,133 | |||||||||
Dividend disbursing and transfer agent fees and expenses | 248,263 | 228,863 | 587,161 | |||||||||
Accounting and administration expenses | 69,250 | 62,928 | 136,656 | |||||||||
Registration fees | 45,113 | 45,113 | 78,270 | |||||||||
Legal fees | 28,686 | 26,247 | 69,358 | |||||||||
Audit and tax fees | 23,210 | 23,210 | 23,210 | |||||||||
Reports and statements to shareholders expenses | 17,324 | 15,955 | 35,009 | |||||||||
Trustees’ fees and expenses | 14,982 | 13,088 | 35,057 | |||||||||
Custodian fees | 9,552 | 7,897 | 158,598 | |||||||||
Other | 22,902 | 23,634 | 51,338 | |||||||||
|
|
|
|
|
| |||||||
2,805,852 | 2,045,790 | 5,551,527 | ||||||||||
Less expenses waived | (413,532 | ) | (438,367 | ) | (449,790 | ) | ||||||
Less waived distribution expenses – Class A | — | (58,275 | ) | — | ||||||||
Less expenses paid indirectly | (3,372 | ) | (2,696 | ) | (639 | ) | ||||||
|
|
|
|
|
| |||||||
Total operating expenses | 2,388,948 | 1,546,452 | 5,101,098 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 10,051,619 | 7,997,652 | 29,667,506 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain: | ||||||||||||
Net realized gain on investments | 3,966,390 | 845,836 | 10,037,289 | |||||||||
Net change in unrealized appreciation (depreciation) of investments | 15,347,963 | 10,771,075 | 46,413,120 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain | 19,314,353 | 11,616,911 | 56,450,409 | |||||||||
|
|
|
|
|
| |||||||
Net Increase in Net Assets Resulting from Operations | $29,365,972 | $19,614,563 | $86,117,915 | |||||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
64
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Table of Contents
Statements of changes in net assets | ||
DelawareTax-Free USA Fund |
Six months 2/29/20 | Year ended 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 10,051,619 | $ | 19,754,538 | ||||
Net realized gain | 3,966,390 | 1,048,183 | ||||||
Net change in unrealized appreciation (depreciation) | 15,347,963 | 23,917,474 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 29,365,972 | 44,720,195 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (8,772,500 | ) | (16,273,524 | ) | ||||
Class C | (217,559 | ) | (472,923 | ) | ||||
Institutional Class | (2,862,107 | ) | (3,153,841 | ) | ||||
|
|
|
| |||||
(11,852,166 | ) | (19,900,288 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 15,369,761 | 109,025,107 | ||||||
Class C | 1,423,562 | 2,698,828 | ||||||
Institutional Class | 37,313,813 | 93,831,044 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 7,989,293 | 14,655,203 | ||||||
Class C | 188,659 | 404,200 | ||||||
Institutional Class | 2,624,655 | 2,682,248 | ||||||
|
|
|
| |||||
64,909,743 | 223,296,630 | |||||||
|
|
|
|
66
Table of Contents
Six months 2/29/20 | Year ended 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (25,876,385 | ) | $ | (152,307,083 | ) | ||
Class C | (2,888,980 | ) | (6,533,225 | ) | ||||
Institutional Class | (20,356,998 | ) | (44,281,845 | ) | ||||
|
|
|
| |||||
(49,122,363 | ) | (203,122,153 | ) | |||||
|
|
|
| |||||
Increase in net assets derived from capital share transactions | 15,787,380 | 20,174,477 | ||||||
|
|
|
| |||||
Net Increase in Net Assets | 33,301,186 | 44,994,384 | ||||||
Net Assets: | ||||||||
Beginning of period | 622,315,805 | 577,321,421 | ||||||
|
|
|
| |||||
End of period | $ | 655,616,991 | $ | 622,315,805 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
67
Table of Contents
Statements of changes in net assets
DelawareTax-Free USA Intermediate Fund
Six months 2/29/20 | Year ended 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 7,997,652 | $ | 16,667,720 | ||||
Net realized gain | 845,836 | 1,077,571 | ||||||
Net change in unrealized appreciation (depreciation) | 10,771,075 | 21,366,521 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 19,614,563 | 39,111,812 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (1,670,950 | ) | (3,886,242 | ) | ||||
Class C | (202,709 | ) | (565,999 | ) | ||||
Institutional Class | (6,120,602 | ) | (12,215,479 | ) | ||||
|
|
|
| |||||
(7,994,261 | ) | (16,667,720 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 10,660,681 | 27,623,937 | ||||||
Class C | 964,165 | 3,447,342 | ||||||
Institutional Class | 55,885,615 | 160,249,995 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 1,576,154 | 3,607,123 | ||||||
Class C | 179,767 | 508,002 | ||||||
Institutional Class | 4,917,859 | 9,563,643 | ||||||
|
|
|
| |||||
74,184,241 | 205,000,042 | |||||||
|
|
|
|
68
Table of Contents
Six months ended 2/29/20 (Unaudited) | Year ended 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ (25,175,971 | ) | $ (49,240,907 | ) | ||||
Class C | (5,135,300 | ) | (10,079,399 | ) | ||||
Institutional Class | (29,299,553 | ) | (163,828,572 | ) | ||||
|
|
|
| |||||
(59,610,824 | ) | (223,148,878 | ) | |||||
|
|
|
| |||||
Increase (Decrease) in net assets derived from capital share transactions | 14,573,417 | (18,148,836 | ) | |||||
|
|
|
| |||||
Net Increase in Net Assets | 26,193,719 | 4,295,256 | ||||||
Net Assets: | ||||||||
Beginning of period | 546,394,783 | 542,099,527 | ||||||
|
|
|
| |||||
End of period | $572,588,502 | $ 546,394,783 | ||||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
69
Table of Contents
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
Six months 2/29/20 | Year ended 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 29,667,506 | $ | 57,113,679 | ||||
Net realized gain | 10,037,289 | 3,014,071 | ||||||
Net change in unrealized appreciation (depreciation) | 46,413,120 | 55,266,412 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 86,117,915 | 115,394,162 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (4,170,551 | ) | (8,113,223 | ) | ||||
Class C | (1,387,167 | ) | (3,047,818 | ) | ||||
Institutional Class | (24,134,630 | ) | (45,407,727 | ) | ||||
|
|
|
| |||||
(29,692,348 | ) | (56,568,768 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 29,803,849 | 54,097,913 | ||||||
Class C | 6,846,639 | 14,629,646 | ||||||
Institutional Class | 161,389,343 | 377,244,099 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 3,808,119 | 7,392,441 | ||||||
Class C | 1,264,206 | 2,752,227 | ||||||
Institutional Class | 19,875,893 | 37,356,231 | ||||||
|
|
|
| |||||
222,988,049 | 493,472,557 | |||||||
|
|
|
|
70
Table of Contents
Six months ended 2/29/20 | Year ended 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (19,622,523 | ) | $ | (61,870,843 | ) | ||
Class C | (10,256,555 | ) | (22,089,760 | ) | ||||
Institutional Class | (90,742,186 | ) | (336,446,245 | ) | ||||
|
|
|
| |||||
(120,621,264 | ) | (420,406,848 | ) | |||||
|
|
|
| |||||
Increase in net assets derived from capital share transactions | 102,366,785 | 73,065,709 | ||||||
|
|
|
| |||||
Net Increase in Net Assets | 158,792,352 | 131,891,103 | ||||||
Net Assets: | ||||||||
Beginning of period | 1,441,706,161 | 1,309,815,058 | ||||||
|
|
|
| |||||
End of period | $ | 1,600,498,513 | $ | 1,441,706,161 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
71
Table of Contents
DelawareTax-Free USA Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | For the year ended Aug. 31, 2019, net realized gain distributions of $120,279 were made by the Fund’s Class A shares, which calculated to $(0.003) per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
72
Table of Contents
Six months ended 2/29/201 (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 11.96 | $ | 11.44 | $ | 11.70 | $ | 12.22 | $ | 11.83 | $ | 11.90 | |||||||||||||||||||
0.19 | 0.41 | 0.42 | 0.43 | 0.42 | 0.43 | |||||||||||||||||||||||||
0.36 | 0.52 | (0.26 | ) | (0.40 | ) | 0.39 | (0.07 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.55 | 0.93 | 0.16 | 0.03 | 0.81 | 0.36 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.19 | ) | (0.41 | ) | (0.42 | ) | (0.43 | ) | (0.42 | ) | (0.43 | ) | |||||||||||||||||||
(0.03 | ) | — | 3 | — | (0.12 | ) | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.22 | ) | (0.41 | ) | (0.42 | ) | (0.55 | ) | (0.42 | ) | (0.43 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 12.29 | $ | 11.96 | $ | 11.44 | $ | 11.70 | $ | 12.22 | $ | 11.83 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
4.70% | 8.35% | 1.44% | 0.41% | 7.00% | 3.09% | |||||||||||||||||||||||||
$ | 482,515 | $ | 472,153 | $ | 481,117 | $ | 415,314 | $ | 493,408 | $ | 504,204 | |||||||||||||||||||
0.81% | 0.81% | 0.81% | 0.81% | 0.81% | 0.81% | |||||||||||||||||||||||||
0.94% | 0.95% | 0.96% | 0.96% | 0.95% | 0.96% | |||||||||||||||||||||||||
3.19% | 3.55% | 3.66% | 3.71% | 3.52% | 3.63% | |||||||||||||||||||||||||
3.06% | 3.41% | 3.51% | 3.56% | 3.38% | 3.48% | |||||||||||||||||||||||||
32% | 43% | 42% | 33% | 33% | 16% |
73
Table of Contents
Financial highlights
DelawareTax-Free USA Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | For the year ended Aug. 31, 2019, net realized gain distributions of $4,649 were made by the Fund’s Class C shares, which calculated to $(0.003) per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
74
Table of Contents
Six months ended 2/29/201 (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 11.96 | $ | 11.44 | $ | 11.70 | $ | 12.22 | $ | 11.83 | $ | 11.91 | |||||||||||||||||||
0.14 | 0.32 | 0.34 | 0.34 | 0.33 | 0.34 | |||||||||||||||||||||||||
0.36 | 0.52 | (0.26 | ) | (0.40 | ) | 0.39 | (0.08 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.50 | 0.84 | 0.08 | (0.06 | ) | 0.72 | 0.26 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.14 | ) | (0.32 | ) | (0.34 | ) | (0.34 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||||||||
(0.03 | ) | — | 3 | — | (0.12 | ) | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.17 | ) | (0.32 | ) | (0.34 | ) | (0.46 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 12.29 | $ | 11.96 | $ | 11.44 | $ | 11.70 | $ | 12.22 | $ | 11.83 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
4.32% | 7.55% | 0.68% | (0.35% | ) | 6.19% | 2.23% | ||||||||||||||||||||||||
$ | 15,126 | $ | 16,051 | $ | 18,808 | $ | 27,397 | $ | 31,545 | $ | 30,851 | |||||||||||||||||||
1.56% | 1.56% | 1.56% | 1.56% | 1.56% | 1.57% | |||||||||||||||||||||||||
1.69% | 1.70% | 1.71% | 1.71% | 1.70% | 1.72% | |||||||||||||||||||||||||
2.44% | 2.80% | 2.91% | 2.96% | 2.77% | 2.88% | |||||||||||||||||||||||||
2.31% | 2.66% | 2.76% | 2.81% | 2.63% | 2.73% | |||||||||||||||||||||||||
32% | 43% | 42% | 33% | 33% | 16% |
75
Table of Contents
Financial highlights
DelawareTax-Free USA Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | For the year ended Aug. 31, 2019, net realized gain distributions of $20,822 were made by the Fund’s Institutional Class shares, which calculated to $(0.003) per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
76
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 12.05 | $ | 11.52 | $ | 11.79 | $ | 12.31 | $ | 11.91 | $ | 11.99 | |||||||||||||||||||||||||||||||
0.20 | 0.44 | 0.45 | 0.46 | 0.46 | 0.47 | |||||||||||||||||||||||||||||||||||||
0.36 | 0.53 | (0.27 | ) | (0.40 | ) | 0.40 | (0.08 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.56 | 0.97 | 0.18 | 0.06 | 0.86 | 0.39 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.20 | ) | (0.44 | ) | (0.45 | ) | (0.46 | ) | (0.46 | ) | (0.47 | ) | |||||||||||||||||||||||||||||||
(0.03 | ) | — | 3 | — | (0.12 | ) | — | — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.23 | ) | (0.44 | ) | (0.45 | ) | (0.58 | ) | (0.46 | ) | (0.47 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.38 | $ | 12.05 | $ | 11.52 | $ | 11.79 | $ | 12.31 | $ | 11.91 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
4.81% | 8.68% | 1.61% | 0.68% | 7.32% | 3.26% | |||||||||||||||||||||||||||||||||||||
$ | 157,976 | $ | 134,112 | $ | 77,396 | $ | 62,872 | $ | 45,696 | $ | 33,323 | |||||||||||||||||||||||||||||||
0.56% | 0.56% | 0.56% | 0.56% | 0.56% | 0.57% | |||||||||||||||||||||||||||||||||||||
0.69% | 0.70% | 0.71% | 0.71% | 0.70% | 0.72% | |||||||||||||||||||||||||||||||||||||
3.44% | 3.80% | 3.91% | 3.96% | 3.77% | 3.88% | |||||||||||||||||||||||||||||||||||||
3.31% | 3.66% | 3.76% | 3.81% | 3.63% | 3.73% | |||||||||||||||||||||||||||||||||||||
32% | 43% | 42% | 33% | 33% | 16% |
77
Table of Contents
Financial highlights
DelawareTax-Free USA Intermediate Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | For the year ended Aug. 31, 2017, net realized gain distributions of $58,508 were made by the Fund’s Class A shares, which calculated to $(0.004) per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
78
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 12.28 | $ | 11.76 | $ | 12.06 | $ | 12.38 | $ | 12.04 | $ | 12.21 | |||||||||||||||||||||||||||||||
0.17 | 0.37 | 0.37 | 0.35 | 0.35 | 0.35 | |||||||||||||||||||||||||||||||||||||
0.25 | 0.52 | (0.30 | ) | (0.32 | ) | 0.34 | (0.17 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.42 | 0.89 | 0.07 | 0.03 | 0.69 | 0.18 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.17 | ) | (0.37 | ) | (0.37 | ) | (0.35 | ) | (0.35 | ) | (0.35 | ) | |||||||||||||||||||||||||||||||
— | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.17 | ) | (0.37 | ) | (0.37 | ) | (0.35 | ) | (0.35 | ) | (0.35 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.53 | $ | 12.28 | $ | 11.76 | $ | 12.06 | $ | 12.38 | $ | 12.04 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.50% | 7.71% | 0.57% | 0.35% | 5.79% | 1.46% | |||||||||||||||||||||||||||||||||||||
$ | 112,962 | $ | 123,691 | $ | 136,653 | $ | 164,154 | $ | 188,034 | $ | 184,514 | |||||||||||||||||||||||||||||||
0.65% | 0.65% | 0.71% | 0.75% | 0.75% | 0.76% | |||||||||||||||||||||||||||||||||||||
0.91% | 0.91% | 0.92% | 0.93% | 0.92% | 0.93% | |||||||||||||||||||||||||||||||||||||
2.86% | 3.11% | 3.10% | 2.92% | 2.84% | 2.85% | |||||||||||||||||||||||||||||||||||||
2.60% | 2.85% | 2.89% | 2.74% | 2.67% | 2.68% | |||||||||||||||||||||||||||||||||||||
12% | 25% | 32% | 26% | 35% | 19% |
79
Table of Contents
Financial highlights
DelawareTax-Free USA Intermediate Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | For the year ended Aug. 31, 2017, net realized gain distributions of $15,746 were made by the Fund’s Class C shares, which calculated to $(0.004) per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
80
Table of Contents
Six months ended 2/29/201 (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 12.27 | $ | 11.75 | $ | 12.05 | $ | 12.37 | $ | 12.03 | $ | 12.20 | |||||||||||||||||||
0.12 | 0.27 | 0.27 | 0.25 | 0.24 | 0.24 | |||||||||||||||||||||||||
0.26 | 0.52 | (0.30 | ) | (0.32 | ) | 0.35 | (0.17 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.38 | 0.79 | (0.03 | ) | (0.07 | ) | 0.59 | 0.07 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.12 | ) | (0.27 | ) | (0.27 | ) | (0.25 | ) | (0.25 | ) | (0.24 | ) | |||||||||||||||||||
— | — | — | — | 3 | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.12 | ) | (0.27 | ) | (0.27 | ) | (0.25 | ) | (0.25 | ) | (0.24 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 12.53 | $ | 12.27 | $ | 11.75 | $ | 12.05 | $ | 12.37 | $ | 12.03 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
3.15% | 6.81% | (0.28% | ) | (0.50% | ) | 4.90% | 0.60% | |||||||||||||||||||||||
$ | 19,240 | $ | 22,874 | $ | 28,002 | $ | 40,402 | $ | 49,515 | $ | 48,328 | |||||||||||||||||||
1.50% | 1.50% | 1.56% | 1.60% | 1.60% | 1.61% | |||||||||||||||||||||||||
1.66% | 1.66% | 1.67% | 1.68% | 1.67% | 1.68% | |||||||||||||||||||||||||
2.01% | 2.26% | 2.25% | 2.07% | 1.99% | 2.00% | |||||||||||||||||||||||||
1.85% | 2.10% | 2.14% | 1.99% | 1.92% | 1.93% | |||||||||||||||||||||||||
12% | 25% | 32% | 26% | 35% | 19% |
81
Table of Contents
Financial highlights
DelawareTax-Free USA Intermediate Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | For the year ended Aug. 31, 2017, net realized gain distributions of $152,523 were made by the Fund’s Institutional Class shares, which calculated to $(0.004) per share. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
82
Table of Contents
Six months ended (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 12.40 | $ | 11.87 | $ | 12.17 | $ | 12.50 | $ | 12.16 | $ | 12.33 | |||||||||||||||||||
0.18 | 0.39 | 0.39 | 0.37 | 0.37 | 0.37 | |||||||||||||||||||||||||
0.25 | 0.53 | (0.30 | ) | (0.33 | ) | 0.34 | (0.17 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.43 | 0.92 | 0.09 | 0.04 | 0.71 | 0.20 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.18 | ) | (0.39 | ) | (0.39 | ) | (0.37 | ) | (0.37 | ) | (0.37 | ) | |||||||||||||||||||
— | — | — | — | 3 | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.18 | ) | (0.39 | ) | (0.39 | ) | (0.37 | ) | (0.37 | ) | (0.37 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 12.65 | $ | 12.40 | $ | 11.87 | $ | 12.17 | $ | 12.50 | $ | 12.16 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
3.55% | 7.92% | 0.75% | 0.44% | 5.92% | 1.62% | |||||||||||||||||||||||||
$ | 440,387 | $ | 399,830 | $ | 377,445 | $ | 369,443 | $ | 479,172 | $ | 474,262 | |||||||||||||||||||
0.50% | 0.50% | 0.56% | 0.60% | 0.60% | 0.61% | |||||||||||||||||||||||||
0.66% | 0.66% | 0.67% | 0.68% | 0.67% | 0.68% | |||||||||||||||||||||||||
3.01% | 3.26% | 3.25% | 3.07% | 2.99% | 3.00% | |||||||||||||||||||||||||
2.85% | 3.10% | 3.14% | 2.99% | 2.92% | 2.93% | |||||||||||||||||||||||||
12% | 25% | 32% | 26% | 35% | 19% |
83
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Financial highlights
Delaware National High-Yield Municipal Bond Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflect a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
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Six months ended 2/29/201 (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 11.48 | $ | 11.00 | $ | 11.05 | $ | 11.42 | $ | 10.75 | $ | 10.65 | |||||||||||||||||||
0.22 | 0.46 | 0.46 | 0.44 | 0.41 | 0.41 | |||||||||||||||||||||||||
0.41 | 0.48 | (0.05 | ) | (0.37 | ) | 0.67 | 0.10 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.63 | 0.94 | 0.41 | 0.07 | 1.08 | 0.51 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.22 | ) | (0.46 | ) | (0.46 | ) | (0.44 | ) | (0.41 | ) | (0.41 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.22 | ) | (0.46 | ) | (0.46 | ) | (0.44 | ) | (0.41 | ) | (0.41 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 11.89 | $ | 11.48 | $ | 11.00 | $ | 11.05 | $ | 11.42 | $ | 10.75 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
5.60% | 8.81% | 3.80% | 0.72% | 10.25% | 4.83% | |||||||||||||||||||||||||
$ | 230,808 | $ | 208,549 | $ | 200,493 | $ | 190,211 | $ | 250,810 | $ | 227,090 | |||||||||||||||||||
0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||||||||||||||||||||||||
0.91% | 0.90% | 0.91% | 0.94% | 0.94% | 0.97% | |||||||||||||||||||||||||
3.90% | 4.22% | 4.19% | 4.02% | 3.73% | 3.80% | |||||||||||||||||||||||||
3.84% | 4.17% | 4.13% | 3.93% | 3.64% | 3.68% | |||||||||||||||||||||||||
19% | 33% | 19% | 27% | 13% | 10% |
85
Table of Contents
Financial highlights
Delaware National High-Yield Municipal Bond Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
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Table of Contents
Six months ended 2/29/201 (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 11.52 | $ | 11.04 | $ | 11.09 | $ | 11.47 | $ | 10.80 | $ | 10.70 | |||||||||||||||||||
0.18 | 0.38 | 0.38 | 0.36 | 0.33 | 0.33 | |||||||||||||||||||||||||
0.42 | 0.48 | (0.05 | ) | (0.38 | ) | 0.67 | 0.10 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.60 | 0.86 | 0.33 | (0.02 | ) | 1.00 | 0.43 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.18 | ) | (0.38 | ) | (0.38 | ) | (0.36 | ) | (0.33 | ) | (0.33 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.18 | ) | (0.38 | ) | (0.38 | ) | (0.36 | ) | (0.33 | ) | (0.33 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 11.94 | $ | 11.52 | $ | 11.04 | $ | 11.09 | $ | 11.47 | $ | 10.80 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
5.28% | 7.98% | 3.03% | (0.11% | ) | 9.41% | 4.04% | ||||||||||||||||||||||||
$ | 92,232 | $ | 91,184 | $ | 92,155 | $ | 97,974 | $ | 113,905 | $ | 91,196 | |||||||||||||||||||
1.60% | 1.60% | 1.60% | 1.60% | 1.60% | 1.60% | |||||||||||||||||||||||||
1.66% | 1.65% | 1.66% | 1.69% | 1.69% | 1.72% | |||||||||||||||||||||||||
3.15% | 3.47% | 3.44% | 3.27% | 2.98% | 3.05% | |||||||||||||||||||||||||
3.09% | 3.42% | 3.38% | 3.18% | 2.89% | 2.93% | |||||||||||||||||||||||||
19% | 33% | 19% | 27% | 13% | 10% |
87
Table of Contents
Financial highlights
Delaware National High-Yield Municipal Bond Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
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Table of Contents
Six months ended 2/29/201 (Unaudited) | Year ended | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||
$ | 11.58 | $ | 11.10 | $ | 11.15 | $ | 11.53 | $ | 10.85 | $ | 10.75 | |||||||||||||||||||
0.24 | 0.49 | 0.49 | 0.47 | 0.45 | 0.44 | |||||||||||||||||||||||||
0.42 | 0.48 | (0.05 | ) | (0.38 | ) | 0.67 | 0.10 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
0.66 | 0.97 | 0.44 | 0.09 | 1.12 | 0.54 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.24 | ) | (0.49 | ) | (0.49 | ) | (0.47 | ) | (0.44 | ) | (0.44 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(0.24 | ) | (0.49 | ) | (0.49 | ) | (0.47 | ) | (0.44 | ) | (0.44 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 12.00 | $ | 11.58 | $ | 11.10 | $ | 11.15 | $ | 11.53 | $ | 10.85 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
5.78% | 9.03% | 4.07% | 0.92% | 10.57% | 5.08% | |||||||||||||||||||||||||
$ | 1,277,459 | $ | 1,141,973 | $ | 1,017,167 | $ | 932,716 | $ | 905,436 | $ | 649,455 | |||||||||||||||||||
0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |||||||||||||||||||||||||
0.66% | 0.65% | 0.66% | 0.69% | 0.69% | 0.72% | |||||||||||||||||||||||||
4.15% | 4.47% | 4.44% | 4.27% | 3.98% | 4.05% | |||||||||||||||||||||||||
4.09% | 4.42% | 4.38% | 4.18% | 3.89% | 3.93% | |||||||||||||||||||||||||
19% | 33% | 19% | 27% | 13% | 10% |
89
Table of Contents
Notes to financial statements | ||
Delaware Funds® by Macquarie national tax-free funds | February 29, 2020 (Unaudited) |
Delaware Group®Tax-Free Fund is organized as a Delaware statutory trust and offers two series: DelawareTax-Free USA Fund and DelawareTax-Free USA Intermediate Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: DelawareTax-Free California Fund, DelawareTax-Free Idaho Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, and DelawareTax-Free New York Fund. Delaware GroupTax-Free Fund and Voyageur Mutual Funds are each referred to as a Trust, or collectively, as the Trusts. These financial statements and the related notes pertain to DelawareTax-Free USA Fund, DelawareTax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund (each a Fund, or collectively, the Funds). Each Fund is anopen-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximumfront-end sales charge of 4.50% for DelawareTax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and 2.75% for DelawareTax-Free USA Intermediate Fund. Class A share purchases of $1,000,000 or more for DelawareTax-Free USA Fund and $250,000 or more for Delaware National High-Yield Municipal Bond Fund will incur a contingent deferred sales charge (CDSC) instead of afront-end sales charge of 1.00%, if redeemed during the first year, and 0.50% during the second year and 0.75% for on Class A share purchases of $1,000,000 for DelawareTax-Free USA Intermediate Fund if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class C shares are sold with a CDSC of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation— Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board, or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.
Federal Income Taxes— No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken
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Table of Contents
in the course of preparing each Fund’s tax returns to determine whether the tax positions are“more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the six months ended Feb. 29, 2020 and for all open tax years (years ended Aug. 31, 2017–Aug. 31, 2019), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the six months ended Feb. 29, 2020, the Funds did not incur any interest or tax penalties.
Class Accounting— Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates— The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other— Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on theex-dividend date.
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Feb. 29, 2020, each Fund earned the following amounts under this arrangement:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||
$3,176 | $2,629 | $433 |
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Table of Contents
Notes to financial statements | ||
Delaware Funds® by Macquarie national tax-free funds |
1. Significant Accounting Policies (continued)
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Feb. 29, 2020, each Fund earned the following amounts under this arrangement:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | ||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||
$196 | $67 | $206 |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
Delaware National | ||||||
Delaware Tax-Free | DelawareTax-Free | High-Yield | ||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||||
On the first $500 million | 0.550% | 0.500% | 0.550% | |||
On the next $500 million | 0.500% | 0.475% | 0.500% | |||
On the next $1.5 billion | 0.450% | 0.450% | 0.450% | |||
In excess of $2.5 billion | 0.425% | 0.425% | 0.425% |
DMC has contractually agreed to waive that portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to limit total annual operating expenses (excluding any distribution and service(12b-1) fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), in order to prevent total annual fund operating expenses from exceeding the following percentage of each Fund’s average daily net assets from Sept. 1, 2019 through Feb. 29, 2020.* These expense waivers and reimbursements may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||
Operating expense limitation as a percentage of average daily net assets | 0.56% | 0.50% | 0.60% |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within
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Table of Contents
the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the six months ended Feb. 29, 2020, each Fund was charged for these services as follows:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | ||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||
$12,577 | $11,234 | $26,904 |
DIFSC is also the transfer agent and dividend disbursing agent of the Funds. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended Feb. 29, 2020, each Fund was charged for these services as follows:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | ||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||
$27,554 | $24,056 | $64,842 |
Pursuant to asub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certainsub-transfer agency services to each Fund.Sub-transfer agency fees are paid by each Fund and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, Delaware National High-Yield Municipal Bond Fund pays DDLP, the distributor and an affiliate of DMC, an annual12b-1 fee of 0.25% of the average daily net assets of the Class A shares. The Board for DelawareTax-Free USA Fund has adopted a formula for calculating12b-1 fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended12b-1 fee equal to the sum of: (1) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (2) 0.25% of average daily net assets representing shares that were acquired on or after June 1, 1992. All of the Fund’s Class A shareholders bear12b-1 fees at the same blended rate, currently 0.25% of average daily net assets, based on the formula described above. This method of calculating Class A12b-1 fees may be discontinued at the sole discretion of the Board. The Class A shares of DelawareTax-Free USA Intermediate Fund were subject to a12b-1 fee of 0.25% of average daily net assets, which was contractually waived to 0.15% of average daily net assets from Sept. 1, 2019 through Feb. 29, 2020.* Each Fund pays 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay12b-1 fees.
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Table of Contents
Notes to financial statements | ||
Delaware Funds® by Macquarie national tax-free funds |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended Feb. 29, 2020, each Fund was charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | ||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||
$7,760 | $6,774 | $18,194 |
For the six months ended Feb. 29, 2020, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | ||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||
$18,262 | $2,184 | $20,716 |
For the six months ended Feb. 29, 2020, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | |||||||||||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | |||||||||||||
Class A | $ — | $ — | $ 194 | ||||||||||||
Class C | 60 | 154 | 1,276 |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the six months ended Feb. 29, 2020, were executed by each Fund pursuant to procedures adopted by the Boards designed to ensure compliance with Rule17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review such transactions for compliance with the procedures adopted by the Boards. Pursuant to these procedures, for the six months ended Feb. 29, 2020, the Funds engaged in Rule17a-7 securities purchases and securities sales, which resulted in realized losses as follows:
Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | |||||||||||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | |||||||||||||
Purchases | $15,222,720 | $10,564,314 | $2,300,831 | ||||||||||||
Sales | 19,213,594 | 8,982,806 | 4,451,292 |
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Delaware Tax-Free | DelawareTax-Free | Delaware National High-Yield | |||||||||||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | |||||||||||||
Net realized gain (loss) | (43,653 | ) | 62,186 | — |
There was no realized gain (loss) as a result of Rule17a-7 securities sales for Delaware National High-Yield Municipal Bond Fund.
*The aggregate contractual waiver period covering this report is from Dec. 28, 2018 through Dec. 28, 2020.
3. Investments
For the six months ended Feb. 29, 2020, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Delaware National | |||||||||||||||
Delaware Tax-Free | DelawareTax-Free | High-Yield | |||||||||||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | |||||||||||||
Purchases | $250,991,462 | $83,399,973 | $462,528,855 | ||||||||||||
Sales | 202,720,454 | 65,498,139 | 290,828,565 |
At Feb. 29, 2020, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes have been estimated since the final tax characteristics cannot be determined until fiscal year end. At Feb. 29, 2020, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:
Delaware National | ||||||||||||
Delaware Tax-Free | DelawareTax-Free | High-Yield | ||||||||||
USA Fund | USA Intermediate Fund | Municipal Bond Fund | ||||||||||
Cost of investments | $ | 624,227,594 | $ | 521,924,977 | $ | 1,503,895,561 | ||||||
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Aggregate unrealized appreciation of investments | $ | 65,788,546 | $ | 51,491,605 | $ | 171,099,772 | ||||||
Aggregate unrealized depreciation of investments | (581,537 | ) | (121,029 | ) | (4,811,643 | ) | ||||||
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Net unrealized appreciation of investments | $ | 65,207,009 | $ | 51,370,576 | $ | 166,288,129 | ||||||
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Notes to financial statements
Delaware Funds® by Macquarie nationaltax-free funds
3. Investments (continued)
At Aug. 31, 2019, capital loss carryforwards available to offset future realized capital gains were as follows:
Loss carryforward character | ||||||||||||
Short-term | Long-term | Total | ||||||||||
DelawareTax-Free USA Intermediate Fund | $ | 1,838,007 | $ | — | $ | 1,838,007 | ||||||
Delaware National High-Yield Municipal Bond Fund | 11,623,420 | 1,405,838 | 13,029,258 |
At Aug. 31, 2019, there were no capital loss carryforwards for DelawareTax-Free USA Fund.
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities,open-end investment companies, futures contracts, and exchange-traded options contracts) | |
Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) | |
Level 3 – | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a
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Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of Feb. 29, 2020:
Delaware Tax-Free USA Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 689,434,603 | |||
DelawareTax-Free USA Intermediate Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $565,895,553 | ||||
Short-Term Investments | 7,400,000 | ||||
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| ||||
Total Value of Securities | $573,295,553 | ||||
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Delaware National High-Yield Municipal Bond Fund | ||||
Level 2 | ||||
Securities | ||||
Assets: | ||||
Municipal Bonds | $1,670,183,690 |
During the six months ended Feb. 29, 2020, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to each Fund. Each Fund’s policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when a Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to each Fund’s net assets. During the six months ended Feb. 29, 2020, there were no Level 3 investments.
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Notes to financial statements | ||
Delaware Funds® by Macquarie national tax-free funds |
4. Capital Shares
Transactions in capital shares were as follows:
DelawareTax-Free USA Fund | DelawareTax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||||||||||||||
Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | Six months 2/29/20 | Year ended 8/31/19 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 1,299,077 | 9,633,567 | 874,646 | 2,346,565 | 2,611,443 | 4,939,498 | ||||||||||||||||||
Class C | 118,349 | 235,464 | 79,162 | 294,667 | 597,479 | 1,334,649 | ||||||||||||||||||
Institutional Class | 3,114,119 | 8,058,705 | 4,532,714 | 13,507,386 | 13,972,734 | 34,265,773 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
| |||||||||||||||||||||||
Class A | 675,791 | 1,282,034 | 129,196 | 305,278 | 333,393 | 675,346 | ||||||||||||||||||
Class C | 15,965 | 35,429 | 14,745 | 43,148 | 110,282 | 250,585 | ||||||||||||||||||
Institutional Class | 220,314 | 232,343 | 399,155 | 801,340 | 1,724,259 | 3,379,605 | ||||||||||||||||||
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5,443,615 | 19,477,542 | 6,029,618 | 17,298,384 | 19,349,590 | 44,845,456 | |||||||||||||||||||
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Shares redeemed: | ||||||||||||||||||||||||
Class A | (2,179,628 | ) | (13,496,639 | ) | (2,063,137 | ) | (4,200,242 | ) | (1,709,750 | ) | (5,676,550 | ) | ||||||||||||
Class C | (245,212 | ) | (572,900 | ) | (421,679 | ) | (856,325 | ) | (897,145 | ) | (2,018,698 | ) | ||||||||||||
Institutional Class | (1,702,475 | ) | (3,877,118 | ) | (2,378,114 | ) | (13,850,854 | ) | (7,862,591 | ) | (30,706,607 | ) | ||||||||||||
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(4,127,315 | ) | (17,946,657 | ) | (4,862,930 | ) | (18,907,421 | ) | (10,469,486 | ) | (38,401,855 | ) | |||||||||||||
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Net increase (decrease) | 1,316,300 | 1,530,885 | 1,166,688 | (1,609,037 | ) | 8,880,104 | 6,443,601 | |||||||||||||||||
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Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables on the previous page and on the “Statements of changes in net assets.” For the six months ended Feb. 29, 2020 and the year ended Aug. 31, 2019, the Funds had the following exchange transactions:
Six months ended | ||||||||||||||||||||
2/29/20 | ||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||
Class A Shares | Class C Shares | Class A Shares | Institutional Class Shares | Value | ||||||||||||||||
DelawareTax-Free USA Fund | 110,006 | 3,162 | 3,166 | 109,190 | $ | 1,349,816 | ||||||||||||||
DelawareTax-Free USA Intermediate Fund | 66,859 | 1,281 | 1,281 | 66,288 | 832,935 | |||||||||||||||
Delaware National High-Yield Municipal Bond Fund | 29,475 | 669 | — | 29,898 | 342,944 |
Year ended 8/31/19 | ||||||||||||||||||||||||
Exchange | Exchange Subscriptions | |||||||||||||||||||||||
Class A Shares | Class C Shares | Institutional Class Shares | Class A Shares | Institutional Class Shares | Value | |||||||||||||||||||
DelawareTax-Free USA Fund | 122,933 | 9,379 | — | 9,402 | 122,076 | $ | 1,496,654 | |||||||||||||||||
DelawareTax-Free USA Intermediate Fund | 1,189,029 | 4,719 | 6,641 | 11,435 | 1,178,174 | 13,998,550 | ||||||||||||||||||
Delaware National High-Yield Municipal Bond Fund | 9,893 | — | — | — | 9,811 | 108,773 |
5. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $220,000,000 revolving line of credit intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. On Nov. 4, 2019, the Participants entered into an amendment to the agreement for a $250,000,000 revolving line of credit (Agreement). The revolving line of credit is to be used as described below and operates in substantially the same manner as the original agreement. The line of credit available under the Agreement expires on Nov. 2, 2020.
Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum ofone-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on Nov. 4, 2019.
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Notes to financial statements | ||
Delaware Funds® by Macquarie national tax-free funds |
5. Line of Credit (continued)
The Funds had no amounts outstanding as of Feb. 29, 2020, or at any time during the period then ended.
6. Securities Lending
DelawareTax-Free USA intermediate Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day, the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day, may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by each fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; and asset-backed securities. The Fund can also accept US government securities and letters of credit(non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized bynon-cash collateral, the Fund receives loan premiums paid by the
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borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Fund, the security lending agent, and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower.
The Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of the Fund’s cash collateral account may be less than the amount the Fund would be required to return to the borrowers of the securities and the Fund would be required to make up for this shortfall.
During the six months ended Feb. 29, 2020, DelawareTax-Free USA Intermediate Fund had no securities out on loan. For the six months ended Feb. 29, 2020, DelawareTax-Fee USA Fund and Delaware National High-Yield Municipal Bond Fund were not included in the Lending Agreement.
7. Geographic, Credit, and Market Risks
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
The risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.
The Funds concentrate their investments in securities issued by municipalities, and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam, whose bonds are also free of federal and individual state income taxes.
The value of the Funds’ investments may be adversely affected by new legislation within the US states or territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At Feb. 29, 2020, the percentages of each Fund’s net assets insured by bond issuers are listed on the next page and these securities have been identified on the “Schedules of investments.”
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Notes to financial statements | ||
Delaware Funds® by Macquarie national tax-free funds |
7. Geographic, Credit, and Market Risks (continued)
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||||
Assured Guaranty Corporation | 0.16% | — | 0.21% | |||||||||||
Assured Guaranty Municipal Corporation | 0.23% | 1.63% | 0.18% | |||||||||||
AMBAC Assurance Corporation | 0.46% | — | 0.06% | |||||||||||
National Public Finance Guarantee Corporation | 0.11% | — | — | |||||||||||
Total | 0.96% | 1.63% | 0.45% |
As of Feb. 29, 2020, DelawareTax-Free USA Fund invested in municipal bonds issued by the states of California and Texas, which constituted approximately 11.78% and 13.71%, respectively, of the Fund’s net assets. As of Feb. 29, 2020, DelawareTax-Free USA Intermediate Fund invested in municipal bonds issued by the states of California and New York, which constituted approximately 14.98% and 15.41%, respectively, of the Fund’s net assets. As of Feb. 29, 2020, Delaware National High-Yield Municipal Bond Fund invested in municipal bonds issued by the state of California, Ohio, and Puerto Rico, which constituted approximately 13.22%, 12.28%, and 10.96%, respectively, of the Fund’s net assets. These investments could make each Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds.
Each Fund invests a portion of its assets in high-yield fixed income securities, which are securities rated lower thanBBB- by Standard & Poor’s Financial Services LLC (S&P), lower than Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher-yielding securities are generally accompanied by a greater degree of credit risk than higher-rated securities. Additionally, lower-rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Each Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. Each Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Each Fund may invest in advance refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to
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purchase high grade interest-bearing debt securities, which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered“pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A, promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Boards have delegated to DMC, theday-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities held by each Fund have been identified on the “Schedules of investments.”
8. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
9. Recent Accounting Pronouncements
In March 2017, the FASB issued an Accounting Standards Update (ASU), ASU2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. Management has implemented ASU2017-08 and determined that the impact of this guidance to the Fund’s net assets at the end of the period is not material.
In August 2018, the FASB issued an ASU2018-13, which changes certain fair value measurement disclosure requirements. The ASU2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair
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Notes to financial statements | ||
Delaware Funds® by Macquarie nationaltax-free funds |
9. Recent Accounting Pronouncements (continued)
value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. The ASU2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
10. Subsequent Events
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known asCOVID-19. The outbreak ofCOVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand, and general market uncertainty. The effects ofCOVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance.
Management has determined that no other material events or transactions occurred subsequent to Feb. 29, 2020, that would require recognition or disclosure in the Funds’ financial statements.
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Board of trustees | ||||||
Shawn K. Lytle President and Chief Executive Officer Delaware Funds® by Macquarie Philadelphia, PA
Thomas L. Bennett Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA
Jerome D. Abernathy Managing Member Stonebrook Capital Management, LLC Jersey City, NJ | Ann D. Borowiec Former Chief Executive Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY
Joseph W. Chow Former Executive Vice President State Street Corporation Boston, MA
John A. Fry President Drexel University Philadelphia, PA | Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. New York, NY
Frances A. Sevilla-Sacasa Former Chief Executive Officer Banco Itaú International Miami, FL | Thomas K. Whitford Former Vice Chairman PNC Financial Services Group Pittsburgh, PA
Christianna Wood Chief Executive Officer and President Gore Creek Capital, Ltd. Golden, CO
Janet L. Yeomans Former Vice President and Treasurer 3M Company St. Paul, MN | |||
Affiliated officers
| ||||||
David F. Connor | Daniel V. Geatens | Richard Salus | ||||
Senior Vice President, | Vice President and | Senior Vice President and | ||||
General Counsel, | Treasurer | Chief Financial Officer | ||||
and Secretary | Delaware Funds | Delaware Funds | ||||
Delaware Funds | by Macquarie | by Macquarie | ||||
by Macquarie | Philadelphia, PA | Philadelphia, PA | ||||
Philadelphia, PA |
This semiannual report is for the information of DelawareTax-Free USA Fund, DelawareTax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on FormN-PORT. Each Fund’s FormsN-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent FormN-PORT are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s FormsN-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
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Semiannual report
Fixed income mutual funds
DelawareTax-Free Arizona Fund
DelawareTax-Free California Fund
DelawareTax-Free Colorado Fund
DelawareTax-Free Idaho Fund
DelawareTax-Free New York Fund
DelawareTax-Free Pennsylvania Fund
February 29, 2020
Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by signing up at delawarefunds.com/edelivery. If you own these shares through a financial intermediary, you may contact your financial intermediary.
You may elect to receive paper copies of all future shareholder reports free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 800523-1918. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the Delaware Funds® by Macquarie or your financial intermediary. |
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawarefunds.com/edelivery.
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Experience Delaware Funds®by Macquarie
Macquarie Investment Management (MIM) is a global asset manager with offices in the United States, Europe, Asia, and Australia. As active managers we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for DelawareTax-Free Arizona Fund, DelawareTax-Free California Fund, DelawareTax-Free Colorado Fund, DelawareTax-Free Idaho Fund, DelawareTax-Free New York Fund, and DelawareTax-Free Pennsylvania Fund at delawarefunds.com/literature.
Manage your account online
• Check your account balance and transactions
• View statements and tax forms
• Make purchases and redemptions
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. MIM is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A.
The Funds are distributed byDelaware Distributors, L.P.
(DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Funds are governed by US laws and regulations.
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Unless otherwise noted, views expressed herein are current as of Feb. 29, 2020, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2020 Macquarie Management Holdings, Inc.
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For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
The investment objective of each Fund is to seek as high a level of current income exempt from federal income tax and from personal income taxes in the respective applicable state, as is consistent with preservation of capital.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service(12b-1) fees; and other Fund expenses. 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 entiresix-month period from Sept. 1, 2019 to Feb. 29, 2020.
Actual expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on 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 and assume reinvestment of all dividends and distributions.
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Disclosure of Fund expenses
For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
DelawareTax-Free Arizona Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,035.30 | 0.84% | $4.25 | ||||||||||
Class C | 1,000.00 | 1,031.50 | 1.59% | 8.03 | ||||||||||
Institutional Class | 1,000.00 | 1,036.60 | 0.59% | 2.99 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.69 | 0.84% | $4.22 | ||||||||||
Class C | 1,000.00 | 1,016.96 | 1.59% | 7.97 | ||||||||||
Institutional Class | 1,000.00 | 1,021.93 | 0.59% | 2.97 |
DelawareTax-Free California Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||||
Actual Fund return† | ||||||||||||||||
Class A | $1,000.00 | $1,038.70 | 0.82% | $4.16 | ||||||||||||
Class C | 1,000.00 | 1,033.90 | 1.57% | 7.94 | ||||||||||||
Institutional Class | 1,000.00 | 1,039.90 | 0.57% | 2.89 | ||||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||||
Class A | $1,000.00 | $1,020.79 | 0.82% | $4.12 | ||||||||||||
Class C | 1,000.00 | 1,017.06 | 1.57% | 7.87 | ||||||||||||
Institutional Class | 1,000.00 | 1,022.03 | 0.57% | 2.87 |
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DelawareTax-Free Colorado Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,032.20 | 0.84% | $4.24 | ||||||||||
Class C | 1,000.00 | 1,028.40 | 1.59% | 8.02 | ||||||||||
Institutional Class | 1,000.00 | 1,033.50 | 0.59% | 2.98 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.69 | 0.84% | $4.22 | ||||||||||
Class C | 1,000.00 | 1,016.96 | 1.59% | 7.97 | ||||||||||
Institutional Class | 1,000.00 | 1,021.93 | 0.59% | 2.97 |
DelawareTax-Free Idaho Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,031.20 | 0.86% | $4.34 | ||||||||||
Class C | 1,000.00 | 1,027.40 | 1.61% | 8.12 | ||||||||||
Institutional Class | 1,000.00 | 1,032.50 | 0.61% | 3.08 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.59 | 0.86% | $4.32 | ||||||||||
Class C | 1,000.00 | 1,016.86 | 1.61% | 8.07 | ||||||||||
Institutional Class | 1,000.00 | 1,021.83 | 0.61% | 3.07 |
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Disclosure of Fund expenses
For thesix-month period from September 1, 2019 to February 29, 2020 (Unaudited)
DelawareTax-Free New York Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,038.50 | 0.80% | $4.05 | ||||||||||
Class C | 1,000.00 | 1,034.80 | 1.55% | 7.84 | ||||||||||
Institutional Class | 1,000.00 | 1,039.90 | 0.55% | 2.79 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.89 | 0.80% | $4.02 | ||||||||||
Class C | 1,000.00 | 1,017.16 | 1.55% | 7.77 | ||||||||||
Institutional Class | 1,000.00 | 1,022.13 | 0.55% | 2.77 |
DelawareTax-Free Pennsylvania Fund
Expense analysis of an investment of $1,000
Beginning | Ending | Expenses | ||||||||||||
Account Value | Account Value | Annualized | Paid During Period | |||||||||||
9/1/19 | 2/29/20 | Expense Ratio | 9/1/19 to 2/29/20* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $1,036.00 | 0.83% | $4.20 | ||||||||||
Class C | 1,000.00 | 1,032.10 | 1.59% | 8.03 | ||||||||||
Institutional Class | 1,000.00 | 1,036.00 | 0.59% | 2.99 | ||||||||||
Hypothetical 5% return(5% return before expenses) |
| |||||||||||||
Class A | $1,000.00 | $1,020.74 | 0.83% | $4.17 | ||||||||||
Class C | 1,000.00 | 1,016.96 | 1.59% | 7.97 | ||||||||||
Institutional Class | 1,000.00 | 1,021.93 | 0.59% | 2.97 |
*“ | Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect theone-half year period). |
† | Because actual returns reflect only the most recentsix-month period, the returns shown may differ significantly from fiscal year returns. |
In addition to the Funds’ expenses reflected above, each Fund also indirectly bears its portion of the fees and expenses of the investment companies (Underlying Funds) in which it invests. The tables above do not reflect the expenses of the Underlying Funds.
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Security type / sector / state / territory allocations | ||
DelawareTax-Free Arizona Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 97.51 | % | ||
Corporate Revenue Bonds | 7.16 | % | ||
Education Revenue Bonds | 25.87 | % | ||
Electric Revenue Bonds | 7.06 | % | ||
Healthcare Revenue Bonds | 18.64 | % | ||
Lease Revenue Bonds | 5.93 | % | ||
Local General Obligation Bonds | 4.66 | % | ||
Pre-Refunded Bonds | 4.65 | % | ||
Special Tax Revenue Bonds | 10.88 | % | ||
State General Obligation Bonds | 1.46 | % | ||
Transportation Revenue Bonds | 5.09 | % | ||
Water & Sewer Revenue Bonds | 6.11 | % | ||
Short-Term Investment | 1.80 | % | ||
Total Value of Securities | 99.31 | % | ||
Receivables and Other Assets Net of Liabilities | 0.69 | % | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free Arizona Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Arizona | 87.64 | % | ||
Guam | 1.95 | % | ||
Puerto Rico | 9.72 | % | ||
Total Value of Securities | 99.31 | % |
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Security type / sector / state / territory allocations | ||
DelawareTax-Free California Fund | As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 97.94 | % | ||
Corporate Revenue Bonds | 6.65 | % | ||
Education Revenue Bonds | 28.48 | % | ||
Electric Revenue Bonds | 0.80 | % | ||
Healthcare Revenue Bonds | 17.76 | % | ||
Housing Revenue Bonds | 5.33 | % | ||
Lease Revenue Bonds | 8.91 | % | ||
Local General Obligation Bonds | 3.18 | % | ||
Pre-Refunded Bonds | 3.48 | % | ||
Special Tax Revenue Bonds | 5.67 | % | ||
State General Obligation Bonds | 7.43 | % | ||
Transportation Revenue Bonds | 10.25 | % | ||
Short-Term Investment | 0.87 | % | ||
Total Value of Securities | 98.81 | % | ||
Receivables and Other Assets Net of Liabilities | 1.19 | % | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free California Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
California | 92.65 | % | ||
Puerto Rico | 6.16 | % | ||
Total Value of Securities | 98.81 | % |
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Security type / sector / state / territory allocations | ||
DelawareTax-Free Colorado Fund
| As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 98.06 | % | ||
Corporate Revenue Bonds | 1.41 | % | ||
Education Revenue Bonds | 12.25 | % | ||
Electric Revenue Bonds | 3.82 | % | ||
Healthcare Revenue Bonds | 25.87 | % | ||
Housing Revenue Bonds | 0.08 | % | ||
Lease Revenue Bonds | 1.98 | % | ||
Local General Obligation Bonds | 11.20 | % | ||
Pre-Refunded Bonds | 6.98 | % | ||
Special Tax Revenue Bonds | 20.57 | % | ||
State General Obligation Bonds | 1.48 | % | ||
Transportation Revenue Bonds | 10.01 | % | ||
Water & Sewer Revenue Bonds | 2.41 | % | ||
Short-Term Investments | 1.08 | % | ||
Total Value of Securities | 99.14 | % | ||
Receivables and Other Assets Net of Liabilities | 0.86 | % | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free Colorado Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Colorado | 89.00 | % | ||
Guam | 1.67 | % | ||
Puerto Rico | 8.00 | % | ||
US Virgin Islands | 0.47 | % | ||
Total Value of Securities | 99.14 | % |
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Security type / sector / state / territory allocations | ||
DelawareTax-Free Idaho Fund
| As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 104.47 | % | ||
Corporate Revenue Bonds | 2.99 | % | ||
Education Revenue Bonds | 24.01 | % | ||
Electric Revenue Bonds | 4.07 | % | ||
Healthcare Revenue Bonds | 8.85 | % | ||
Housing Revenue Bonds | 4.38 | % | ||
Lease Revenue Bonds | 10.54 | % | ||
Local General Obligation Bonds | 23.39 | % | ||
Pre-Refunded Bonds | 5.28 | % | ||
Special Tax Revenue Bonds | 15.71 | % | ||
State General Obligation Bonds | 1.48 | % | ||
Transportation Revenue Bonds | 2.50 | % | ||
Water & Sewer Revenue Bonds | 1.27 | % | ||
Short-Term Investments | 0.28 | % | ||
Total Value of Securities | 104.75 | % | ||
Liabilities Net of Receivables and Other Assets | (4.75 | %) | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free Idaho Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Guam | 4.89 | % | ||
Idaho | 89.14 | % | ||
Puerto Rico | 10.48 | % | ||
US Virgin Islands | 0.24 | % | ||
Total Value of Securities | 104.75 | % |
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Security type / sector / state / territory allocations | ||
DelawareTax-Free New York Fund
| As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials. |
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 99.80 | % | ||
Corporate Revenue Bonds | 5.72 | % | ||
Education Revenue Bonds | 21.19 | % | ||
Electric Revenue Bonds | 4.74 | % | ||
Healthcare Revenue Bonds | 14.77 | % | ||
Lease Revenue Bonds | 6.85 | % | ||
Local General Obligation Bonds | 1.36 | % | ||
Pre-Refunded Bonds | 5.15 | % | ||
Resource Recovery Revenue Bond | 1.78 | % | ||
Special Tax Revenue Bonds | 19.27 | % | ||
State General Obligation Bonds | 1.47 | % | ||
Transportation Revenue Bonds | 11.62 | % | ||
Water & Sewer Revenue Bonds | 5.88 | % | ||
Short-Term Investment | 0.11 | % | ||
Total Value of Securities | 99.91 | % | ||
Receivables and Other Assets Net of Liabilities | 0.09 | % | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free New York Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Guam | 0.28 | % | ||
New York | 90.22 | % | ||
Puerto Rico | 9.41 | % | ||
Total Value of Securities | 99.91 | % |
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Security type / sector / state / territory allocations | ||
DelawareTax-Free Pennsylvania Fund
| As of February 29, 2020 (Unaudited) |
Sector designations may be different than the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 99.42 | % | ||
Corporate Revenue Bonds | 7.92 | % | ||
Education Revenue Bonds | 12.81 | % | ||
Electric Revenue Bonds | 0.94 | % | ||
Healthcare Revenue Bonds | 40.31 | % | ||
Housing Revenue Bond | 0.44 | % | ||
Lease Revenue Bonds | 0.98 | % | ||
Local General Obligation Bonds | 8.39 | % | ||
Pre-Refunded/Escrowed to Maturity Bonds | 5.34 | % | ||
Special Tax Revenue Bonds | 8.93 | % | ||
State General Obligation Bonds | 2.32 | % | ||
Transportation Revenue Bonds | 7.93 | % | ||
Water & Sewer Revenue Bonds | 3.11 | % | ||
Total Value of Securities | 99.42 | % | ||
Receivables and Other Assets Net of Liabilities | 0.58 | % | ||
Total Net Assets | 100.00 | % |
*As of the date of this report, DelawareTax-Free Pennsylvania Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Pennsylvania | 92.28 | % | ||
Puerto Rico | 7.14 | % | ||
Total Value of Securities | 99.42 | % |
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Schedules of investments | ||
DelawareTax-Free Arizona Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
Municipal Bonds – 97.51% | ||||||||
Corporate Revenue Bonds – 7.16% | ||||||||
Chandler Industrial Development Authority Revenue | ||||||||
(Intel Corporation Project) 2.70% 12/1/37 (AMT) • | 1,000,000 | $ | 1,052,190 | |||||
Pima County Industrial Development Authority Pollution Control Revenue | ||||||||
(Tucson Electric Power) Series A 5.25% 10/1/40 | 2,000,000 | 2,045,520 | ||||||
Salt Verde Financial Senior Gas Revenue | ||||||||
5.00% 12/1/37 | 2,000,000 | 2,865,760 | ||||||
|
| |||||||
5,963,470 | ||||||||
|
| |||||||
Education Revenue Bonds – 25.87% | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Academies of Math & Science Projects) Series A 5.00% 7/1/51 | 1,000,000 | 1,181,250 | ||||||
(ACCEL Schools Project) Series A 144A 5.25% 8/1/48 # | 350,000 | 385,703 | ||||||
(American Charter Schools Foundation Project) 144A 6.00% 7/1/47 # | 400,000 | 471,476 | ||||||
(Equitable School Revolving Fund) Series A 4.00% 11/1/49 | 1,600,000 | 1,822,432 | ||||||
(Pinecrest Academy of Nevada-Horizon, Inspirada and St. Rose Campus Projects) Series A 144A 5.75% 7/15/48 # | 250,000 | 295,763 | ||||||
Arizona State University Energy Management Revenue | ||||||||
(Arizona State University Tempe Campus II Project) 4.50% 7/1/24 | 1,000,000 | 1,002,650 | ||||||
Arizona State University System Revenue | ||||||||
(Green Bonds) Series A 5.00% 7/1/43 | 1,000,000 | 1,296,900 | ||||||
Glendale Industrial Development Authority Revenue | ||||||||
(Midwestern University) 5.00% 5/15/31 | 645,000 | 699,245 | ||||||
Maricopa County Industrial Development Authority Revenue | ||||||||
(Autism Charter Schools Project) | ||||||||
Series A 144A 5.00% 7/1/50 # | 675,000 | 772,875 | ||||||
Series A 144A 5.00% 7/1/54 # | 640,000 | 726,163 | ||||||
(Creighton University Project) 4.00% 7/1/50 | 2,000,000 | 2,320,820 | ||||||
(GreatHearts Arizona Projects) Series A 5.00% 7/1/52 | 725,000 | 866,665 | ||||||
(Reid Traditional Schools Projects) 5.00% 7/1/47 | 785,000 | 897,004 | ||||||
McAllister Academic Village Revenue | ||||||||
(Arizona State University Hassayampa Academic Village Project) 5.00% 7/1/31 | 500,000 | 620,410 | ||||||
Phoenix Industrial Development Authority | ||||||||
(Basis School Projects) 144A 5.00% 7/1/35 # | 500,000 | 563,570 | ||||||
(Choice Academies Project) 5.625% 9/1/42 | 1,250,000 | 1,312,900 | ||||||
(Eagle College Preparatory Project) Series A 5.00% 7/1/43 | 500,000 | 522,760 |
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Schedules of investments
DelawareTax-Free Arizona Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
Phoenix Industrial Development Authority | ||||||||
(Great Hearts Academic Project) 5.00% 7/1/46 | 1,000,000 | $ | 1,120,810 | |||||
(Rowan University Project) 5.00% 6/1/42 | 2,000,000 | 2,150,720 | ||||||
Pima County Industrial Development Authority Education Revenue | ||||||||
(American Leadership Academy Project) | ||||||||
144A 5.00% 6/15/47 # | 100,000 | 104,063 | ||||||
144A 5.00% 6/15/52 # | 90,000 | 93,556 | ||||||
(Edkey Charter School Project) 6.00% 7/1/48 | 1,000,000 | 1,015,960 | ||||||
(Tucson Country Day School Project) 5.00% 6/1/37 | 750,000 | 750,210 | ||||||
University of Arizona Board of Regents | ||||||||
Series A 4.00% 6/1/44 | 475,000 | 557,811 | ||||||
|
| |||||||
21,551,716 | ||||||||
|
| |||||||
Electric Revenue Bonds – 7.06% | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.05% 7/1/42 ‡ | 55,000 | 43,931 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 35,000 | 28,044 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 255,000 | 204,319 | ||||||
Series WW 5.00% 7/1/28 ‡ | 245,000 | 195,694 | ||||||
Series XX 4.75% 7/1/26 ‡ | 35,000 | 27,781 | ||||||
Series XX 5.25% 7/1/40 ‡ | 100,000 | 80,125 | ||||||
Series XX 5.75% 7/1/36 ‡ | 125,000 | 100,781 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 30,000 | 23,813 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 45,000 | 36,056 | ||||||
Salt River Project Agricultural Improvement & Power District Electric System Revenue | ||||||||
Series A 5.00% 1/1/39 | 3,000,000 | 3,818,850 | ||||||
Series A 5.00% 1/1/47 | 1,000,000 | 1,320,100 | ||||||
|
| |||||||
5,879,494 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 18.64% | ||||||||
Arizona Health Facilities Authority Hospital System Revenue | ||||||||
(Banner Health) Series A 5.00% 1/1/43 | 500,000 | 532,750 | ||||||
(Phoenix Children’s Hospital) Series A 5.00% 2/1/34 | 995,000 | 1,065,456 | ||||||
(Scottsdale Lincoln Hospital Project) 5.00% 12/1/42 | 1,000,000 | 1,164,690 | ||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Great Lakes Senior Living Communities LLC Project First Tier) Series A 5.00% 1/1/54 | 145,000 | 168,531 | ||||||
(Great Lakes Senior Living Communities LLC Project Second Tier) | ||||||||
Series B 5.00% 1/1/49 | 55,000 | 62,660 | ||||||
Series B 5.125% 1/1/54 | 65,000 | 74,439 |
12
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Arizona Industrial Development Authority Revenue | ||||||||
(Great Lakes Senior Living Communities LLC Project Third Tier) Series C 144A 5.00% 1/1/49 # | 500,000 | $ | 547,140 | |||||
Glendale Industrial Development Authority Revenue | ||||||||
(Glencroft Retirement Community Project) 5.00% 11/15/36 | 270,000 | 297,718 | ||||||
(Sun Health Services) Series A 5.00% 11/15/48 | 1,000,000 | 1,167,800 | ||||||
Maricopa County Industrial Development Authority Health Facilities Revenue | ||||||||
(Banner Health) | ||||||||
Series A 4.00% 1/1/41 | 1,000,000 | 1,148,110 | ||||||
Series A 4.00% 1/1/44 | 1,500,000 | 1,742,880 | ||||||
Maricopa County Industrial Development Authority Senior Living Facility Revenue | ||||||||
(Christian Care Surprise Project) 144A 6.00% 1/1/48 # | 405,000 | 438,153 | ||||||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | ||||||||
(Hospital Auxilio Mutuo Obligated Group Project) | ||||||||
Series A 6.00% 7/1/33 | 790,000 | 824,452 | ||||||
Tempe Industrial Development Authority Revenue | ||||||||
(Friendship Village) Series A 6.25% 12/1/42 | 1,200,000 | 1,277,988 | ||||||
(Mirabella at ASU Project) Series A 144A 6.125% 10/1/52 # | 250,000 | 296,083 | ||||||
Yavapai County Industrial Development Authority Hospital Facility | ||||||||
(Yavapai Regional Medical Center) 4.00% 8/1/43 | 1,500,000 | 1,747,965 | ||||||
Series A 5.25% 8/1/33 | 2,000,000 | 2,277,460 | ||||||
Yuma Industrial Development Authority Hospital Revenue | ||||||||
(Yuma Regional Medical Center) | ||||||||
Series A 5.00% 8/1/32 | 295,000 | 342,126 | ||||||
Series A 5.25% 8/1/32 | 300,000 | 351,132 | ||||||
|
| |||||||
15,527,533 | ||||||||
|
| |||||||
Lease Revenue Bonds – 5.93% | ||||||||
Arizona Game & Fish Department & Community Beneficial Interest Certificates | ||||||||
(Administration Building Project) 5.00% 7/1/32 | 1,000,000 | 1,003,030 | ||||||
Arizona Sports & Tourism Authority Senior Revenue | ||||||||
(Multipurpose Stadium Facility) Series A 5.00% 7/1/36 | 350,000 | 374,013 | ||||||
Maricopa County Industrial Development Authority Correctional Contract Revenue | ||||||||
(Phoenix West Prison) Series B 5.375% 7/1/22 (ACA) | 1,000,000 | 1,003,290 |
13
Table of Contents
Schedules of investments
DelawareTax-Free Arizona Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Lease Revenue Bonds(continued) | ||||||||
Phoenix Civic Improvement Airport Revenue | ||||||||
(Junior Lien) Series A 5.00% 7/1/49 | 2,000,000 | $ | 2,565,560 | |||||
|
| |||||||
4,945,893 | ||||||||
|
| |||||||
Local General Obligation Bonds – 4.66% | ||||||||
Maricopa County High School District No. 214 Tolleson Union High School | ||||||||
(School Improvement Project) Series B 4.00% 7/1/37 | 1,300,000 | 1,541,046 | ||||||
Maricopa County School District No. 3 Tempe Elementary | ||||||||
(School Improvement Project) Series B 5.00% 7/1/30 | 560,000 | 733,365 | ||||||
Maricopa County Unified School District No 69 Paradise Valley | ||||||||
4.00% 7/1/39 | 600,000 | 722,382 | ||||||
Maricopa County Unified School District No. 95 Queen Creek | ||||||||
(School Improvement) 4.00% 7/1/35 | 500,000 | 595,560 | ||||||
Pinal County Community College District | ||||||||
4.00% 7/1/31 | 250,000 | 288,645 | ||||||
|
| |||||||
3,880,998 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 4.65% | ||||||||
Northern Arizona University | ||||||||
5.00%6/1/36-21 § | 475,000 | 499,529 | ||||||
Phoenix Industrial Development Authority | ||||||||
(Great Hearts Academic Project) | ||||||||
6.30%7/1/42-21 § | 500,000 | 536,035 | ||||||
6.40%7/1/47-21 § | 500,000 | 536,690 | ||||||
Pinal County Electric District No. 3 | ||||||||
Series A 5.25%7/1/41-21 § | 750,000 | 794,295 | ||||||
University of Arizona Board of Regents | ||||||||
Series A 5.00%6/1/25-22 § | 345,000 | 377,326 | ||||||
Series A 5.00%6/1/38-23 § | 1,000,000 | 1,134,580 | ||||||
|
| |||||||
3,878,455 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 10.88% | ||||||||
Glendale Municipal Property Excise Tax Revenue | ||||||||
(Senior Lien) Series B 5.00% 7/1/33 | 570,000 | 629,195 | ||||||
Glendale Transportation Excise Tax Revenue | 1,000,000 | 1,204,750 | ||||||
Guam Government Business Privilege Tax Revenue | ||||||||
Series A 5.125% 1/1/42 | 545,000 | 576,981 | ||||||
Series A 5.25% 1/1/36 | 705,000 | 750,226 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 3,195,000 | 3,617,123 |
14
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 5.00% 7/1/58 | 505,000 | $ | 579,169 | |||||
SeriesA-2 4.536% 7/1/53 | 1,000,000 | 1,116,390 | ||||||
Regional Public Transportation Authority | ||||||||
(Maricopa County Public Transportation) 5.25% 7/1/24 | 500,000 | 595,100 | ||||||
|
| |||||||
9,068,934 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.46% | ||||||||
Commonwealth of Puerto Rico | ||||||||
Series A 5.00% 7/1/41 ‡ | 235,000 | 178,013 | ||||||
Series A 5.375% 7/1/33 ‡ | 270,000 | 222,075 | ||||||
Series A 8.00% 7/1/35 ‡ | 355,000 | 260,038 | ||||||
Series B 5.75% 7/1/38 ‡ | 340,000 | 276,675 | ||||||
Series C 6.00% 7/1/39 ‡ | 340,000 | 279,225 | ||||||
|
| |||||||
1,216,026 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 5.09% | ||||||||
Arizona Department of Transportation State Highway Fund Revenue | ||||||||
5.00% 7/1/35 | 500,000 | 615,600 | ||||||
Phoenix Civic Improvement Airport Revenue | ||||||||
Series B 5.00% 7/1/37 | 1,000,000 | 1,255,290 | ||||||
(Senior Lien) | ||||||||
4.00% 7/1/48 (AMT) | 500,000 | 573,535 | ||||||
5.00% 7/1/32 (AMT) | 500,000 | 559,860 | ||||||
Series A 5.00% 7/1/36 (AMT) | 1,000,000 | 1,233,760 | ||||||
|
| |||||||
4,238,045 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 6.11% | ||||||||
Arizona Water Infrastructure Finance Authority | ||||||||
(Water Quality Revenue) Series A 5.00% 10/1/26 | 1,000,000 | 1,191,910 | ||||||
Central Arizona Water Conservation District | ||||||||
(Central Arizona Project) 5.00% 1/1/31 | 600,000 | 733,698 | ||||||
Guam Government Waterworks Authority Revenue | ||||||||
5.00% 7/1/37 | 250,000 | 300,847 | ||||||
Mesa Utility System Revenue | ||||||||
4.00% 7/1/31 | 850,000 | 988,099 | ||||||
Phoenix Civic Improvement Corporation | ||||||||
(Junior Lien) | ||||||||
5.00% 7/1/27 | 1,000,000 | 1,253,200 | ||||||
5.00% 7/1/31 | 500,000 | 621,795 | ||||||
|
| |||||||
5,089,549 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $74,978,021) | 81,240,113 | |||||||
|
|
15
Table of Contents
Schedules of investments
DelawareTax-Free Arizona Fund
Principal amount° | Value (US $) | |||||||
Short-Term Investment – 1.80% | ||||||||
Variable Rate Demand Note – 1.80%¤ | ||||||||
Phoenix Industrial Development Authority | ||||||||
(Mayo Clinic) Series B 1.15% 11/15/52 | ||||||||
(SPA - Northern Trust Company) | 1,500,000 | $ | 1,500,000 | |||||
|
| |||||||
Total Short-Term Investment(cost $1,500,000) | 1,500,000 | |||||||
|
| |||||||
Total Value of Securities – 99.31% | $ | 82,740,113 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $4,694,545, which represents 5.63% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Feb. 29, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
Summary of abbreviations:
ACA – Insured by American Capital Access
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
16
Table of Contents
Summary of abbreviations (continued):
SPA –Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
17
Table of Contents
Schedules of investments | ||
DelawareTax-Free California Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 97.94% | ||||||||
| ||||||||
Corporate Revenue Bonds – 6.65% | ||||||||
Golden State Tobacco Securitization Settlement Revenue | ||||||||
(Asset-Backed) | ||||||||
SeriesA-1 5.25% 6/1/47 | 750,000 | $ | 800,145 | |||||
SeriesA-2 5.00% 6/1/47 | 2,000,000 | 2,123,740 | ||||||
(Capital Appreciation Asset-Backed) Subordinate Series B 1.548% 6/1/47 ^ | 1,615,000 | 310,500 | ||||||
Inland Empire Tobacco Securitization Authority | ||||||||
(Capital Appreciation Turbo Asset-Backed) Series F 144A 1.46% 6/1/57 #^ | 16,655,000 | 608,241 | ||||||
M-S-R Energy Authority Revenue | ||||||||
Series B 6.50% 11/1/39 | 500,000 | 842,370 | ||||||
Tobacco Securitization Authority of Southern California | ||||||||
(San Diego County) | ||||||||
Capital Appreciation Second Subordinate Series C 0.558% 6/1/46 ^ | 9,285,000 | 1,632,582 | ||||||
Capital Appreciation Third Subordinate Series D 0.307% 6/1/46 ^ | 3,460,000 | 543,877 | ||||||
|
| |||||||
6,861,455 | ||||||||
|
| |||||||
Education Revenue Bonds – 28.48% | ||||||||
California Educational Facilities Authority | ||||||||
(Loma Linda University) Series A 5.00% 4/1/47 | 1,000,000 | 1,200,670 | ||||||
(Stanford University) | ||||||||
SeriesU-1 5.25% 4/1/40 | 775,000 | 1,257,980 | ||||||
SeriesV-1 5.00% 5/1/49 | 2,600,000 | 4,428,476 | ||||||
California Municipal Finance Authority | ||||||||
(Bella Mente Montessori Academy Project) Series A 144A 5.00% 6/1/48 # | 500,000 | 591,565 | ||||||
(Biola University) 5.00% 10/1/39 | 1,000,000 | 1,224,050 | ||||||
(California Baptist University) Series A 144A 5.375% 11/1/40 # | 1,000,000 | 1,176,250 | ||||||
(CHF - Davis I, LLC - West Village Student Housing Project) 5.00% 5/15/48 | 1,000,000 | 1,224,460 | ||||||
(CHF - Riverside II, LLC - UCR North District Phase I Student Housing Project) 5.00% 5/15/44 (BAM) | 420,000 | 534,387 | ||||||
(Creative Center of Los Altos Project - Pinewood School & Oakwood School) Series B 144A 4.50% 11/1/46 # | 500,000 | 538,385 | ||||||
(Julian Charter School Project) Series A 144A 5.625% 3/1/45 # | 600,000 | 635,664 | ||||||
(Literacy First Charter Schools Project) Series A 5.00% 12/1/49 | 750,000 | 907,043 | ||||||
(Southwestern Law School) 6.50% 11/1/41 | 1,140,000 | 1,247,821 |
18
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
California Public Finance Authority Educational Facilities Revenue | ||||||||
(Trinity Classical Academy Project) | ||||||||
Series A 144A 5.00% 7/1/44 # | 350,000 | $ | 381,682 | |||||
Series A 144A 5.00% 7/1/54 # | 500,000 | 542,300 | ||||||
California School Finance Authority | ||||||||
(Aspire Public Schools - Obligated Group) Series A 144A 5.00% 8/1/45 # | 715,000 | 812,104 | ||||||
(Encore Education Obligated Group) Series A 144A 5.00% 6/1/42 # | 500,000 | 467,490 | ||||||
(Escuela Popular Project) 144A 6.50% 7/1/50 # | 250,000 | 268,000 | ||||||
(Granada Hills Charter Obligated Group) 144A 5.00% 7/1/49 # | 500,000 | 583,630 | ||||||
(Green Dot Public Schools Project) Series A 144A 5.00% 8/1/35 # | 1,000,000 | 1,166,080 | ||||||
(Grimmway Schools - Obligated Group) Series A 144A 5.00% 7/1/36 # | 500,000 | 573,985 | ||||||
(ICEF - View Park Elementary & Middle Schools) Series A 5.625% 10/1/34 | 575,000 | 657,610 | ||||||
(KIPP LA Projects) Series A 5.125% 7/1/44 | 1,000,000 | 1,137,670 | ||||||
(KIPP SoCal Projects) Series A 144A 5.00% 7/1/49 # | 1,000,000 | 1,240,890 | ||||||
(Partnerships to Uplift Communities Valley Project) | ||||||||
Series A 144A 6.75% 8/1/44 # | 1,000,000 | 1,141,350 | ||||||
California State University Systemwide Revenue Series A 5.00% 11/1/47 | 1,000,000 | 1,252,330 | ||||||
California Statewide Communities Development Authority Charter School Revenue | ||||||||
(Green Dot Public Schools - Animo Inglewood Charter | ||||||||
High School Project) Series A 7.25% 8/1/41 | 800,000 | 860,696 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(California Baptist University) Series A 6.125% 11/1/33 | 750,000 | 873,975 | ||||||
(NCCD - Hooper Street LLC - California College of the Arts Project) 144A 5.25% 7/1/49 # | 250,000 | 297,927 | ||||||
California Statewide Communities Development Authority Student Housing Revenue | ||||||||
(University of California Irvine East Campus Apartments) 5.375% 5/15/38 | 1,000,000 | 1,052,290 | ||||||
Mt. San Antonio Community College District Convertible | ||||||||
Capital Appreciation Election 2008 | ||||||||
Series A 0.00% 8/1/28 ~ | 1,000,000 | 1,132,580 | ||||||
|
| |||||||
29,409,340 | ||||||||
|
|
19
Table of Contents
Schedules of investments
DelawareTax-Free California Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Electric Revenue Bonds – 0.80% | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.05% 7/1/42 ‡ | 70,000 | $ | 55,913 | |||||
Series AAA 5.25% 7/1/25 ‡ | 40,000 | 32,050 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 325,000 | 260,406 | ||||||
Series WW 5.00% 7/1/28 ‡ | 310,000 | 247,613 | ||||||
Series XX 4.75% 7/1/26 ‡ | 45,000 | 35,719 | ||||||
Series XX 5.75% 7/1/36 ‡ | 150,000 | 120,938 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 35,000 | 27,781 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 55,000 | 44,069 | ||||||
|
| |||||||
824,489 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 17.76% | ||||||||
Abag Finance Authority for Nonprofit Corporations | ||||||||
(Episcopal Senior Communities) 6.125% 7/1/41 | 850,000 | 904,417 | ||||||
(Sharp HealthCare) Series A 5.00% 8/1/28 | 250,000 | 268,887 | ||||||
California Health Facilities Financing Authority Revenue | ||||||||
(Cedars-Sinai Medical Center) Series B 4.00% 8/15/36 | 500,000 | 583,625 | ||||||
(Children’s Hospital Los Angeles) | ||||||||
Series A 5.00% 11/15/34 | 500,000 | 549,930 | ||||||
Series A 5.00% 8/15/47 | 500,000 | 603,895 | ||||||
(Dignity Health) Series E 5.625% 7/1/25 | 1,000,000 | 1,013,290 | ||||||
(Kaiser Permanente) Subordinate SeriesA-2 4.00% 11/1/44 | 2,005,000 | 2,345,770 | ||||||
(Lucile Salter Packard Children’s Hospital at Stanford) | ||||||||
Series A 5.00% 11/15/56 | 1,000,000 | 1,226,330 | ||||||
(Sutter Health) Series D 5.25% 8/15/31 | 1,000,000 | 1,065,690 | ||||||
California Municipal Finance Authority Revenue | ||||||||
(Community Medical Centers) | ||||||||
Series A 5.00% 2/1/42 | 750,000 | 915,270 | ||||||
Series A 5.00% 2/1/47 | 250,000 | 303,065 | ||||||
(Northbay Healthcare Group) Series A 5.25% 11/1/47 | 500,000 | 589,300 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Adventist Health System/West) Series A 4.00% 3/1/48 | 1,000,000 | 1,119,390 | ||||||
(Covenant Retirement Communities) Series C | 1,000,000 | 1,160,020 | ||||||
(Episcopal Communities & Services) 5.00% 5/15/32 | 600,000 | 652,662 | ||||||
(Huntington Memorial Hospital) 4.00% 7/1/48 | 500,000 | 557,325 | ||||||
(Loma Linda University Medical Center) Series A 144A 5.50% 12/1/58 # | 400,000 | 484,100 | ||||||
(Marin General Hospital - Green Bonds) Series A 4.00% 8/1/45 | 500,000 | 544,115 | ||||||
(Redlands Community Hospital) 5.00% 10/1/46 | 1,000,000 | 1,183,830 |
20
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
La Verne | ||||||||
(Brethren Hillcrest Homes) 5.00% 5/15/36 | 750,000 | $ | 798,300 | |||||
Palomar Health | ||||||||
5.00% 11/1/47 (AGM) | 500,000 | 614,075 | ||||||
San Buenaventura | ||||||||
(Community Memorial Health System) 7.50% 12/1/41 | 785,000 | 856,333 | ||||||
|
| |||||||
18,339,619 | ||||||||
|
| |||||||
Housing Revenue Bonds – 5.33% | ||||||||
California Housing Finance Agency | ||||||||
Series 2 Class A Certificates 4.00% 3/20/33 | 998,772 | 1,208,005 | ||||||
California Municipal Finance Authority Mobile Home Park Revenue | ||||||||
(Caritas Projects) | ||||||||
Series A 4.00% 8/15/42 | 1,270,000 | 1,373,594 | ||||||
Series A 5.50% 8/15/47 | 750,000 | 804,630 | ||||||
Independent Cities Finance Authority Mobile Home Park Revenue | ||||||||
(Pillar Ridge) Series A 5.25% 5/15/44 | 1,000,000 | 1,118,280 | ||||||
Santa Clara County Multifamily Housing Authority Revenue | ||||||||
(RiverTown Apartments Project) Series A 5.85% 8/1/31 (AMT) | 1,000,000 | 1,003,190 | ||||||
|
| |||||||
5,507,699 | ||||||||
|
| |||||||
Lease Revenue Bonds – 8.91% | ||||||||
Abag Finance Authority for Nonprofit Corporations | ||||||||
(Jackson Laboratory) 5.00% 7/1/37 | 1,000,000 | 1,089,160 | ||||||
California Infrastructure & Economic Development Bank | ||||||||
(Academy of Motion Picture Arts & Sciences Obligated Group) Series A 5.00% 11/1/41 | 1,000,000 | 1,144,530 | ||||||
California Municipal Finance Authority | ||||||||
(Goodwill Industry of Sacramento Valley & Northern Nevada Project) 5.00% 1/1/35 | 635,000 | 652,202 | ||||||
California Pollution Control Financing Authority Revenue | ||||||||
(San Diego County Water Authority Desalination Project Pipeline) 144A 5.00% 11/21/45 # | 1,000,000 | 1,218,140 | ||||||
California State Public Works Board Lease Revenue | ||||||||
(Department of Corrections and Rehabilitation) Series C 5.00% 10/1/26 | 1,000,000 | 1,066,550 | ||||||
California Statewide Communities Development Authority Revenue | ||||||||
(Lancer Plaza Project) 5.625% 11/1/33 | 1,000,000 | 1,141,400 | ||||||
Golden State Tobacco Securitization Settlement Revenue | ||||||||
(Enhanced Asset-Backed) Series A 5.00% 6/1/29 | 1,000,000 | 1,134,170 |
21
Table of Contents
Schedules of investments
DelawareTax-Free California Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Lease Revenue Bonds(continued) | ||||||||
Oceanside Public Financing Authority | ||||||||
(EL Corazon Aquatics Center Project) 4.00% 11/1/49 | 1,000,000 | $ | 1,186,860 | |||||
San Jose Financing Authority Lease Revenue | ||||||||
(Civic Center Project) Series A 5.00% 6/1/33 | 500,000 | 565,900 | ||||||
|
| |||||||
9,198,912 | ||||||||
|
| |||||||
Local General Obligation Bonds – 3.18% | ||||||||
Anaheim School District Capital Appreciation Election 2002 | ||||||||
4.58% 8/1/25 (NATL) ^ | 1,000,000 | 939,500 | ||||||
Marin Healthcare District Election 2013 | ||||||||
Series A 4.00% 8/1/47 | 1,000,000 | 1,163,670 | ||||||
San Francisco Bay Area Rapid Transit District Election of 2016 | ||||||||
(Green Bonds) SeriesB-1 4.00% 8/1/44 | 500,000 | 613,010 | ||||||
West Contra Costa Unified School District 2012 Election | ||||||||
Series C 4.00% 8/1/41 | 500,000 | 567,515 | ||||||
|
| |||||||
3,283,695 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 3.48% | ||||||||
Anaheim Public Financing Authority Revenue | ||||||||
(Anaheim Electric System Distribution Facilities) Series A 5.00%10/1/25-21 § | 800,000 | 838,464 | ||||||
Pittsburg Unified School District Financing Authority Revenue | ||||||||
(Pittsburg Unified School District Bond Program) 5.50%9/1/46-21 (AGM) § | 800,000 | 857,360 | ||||||
Rancho Santa Fe Community Services District Financing Authority Revenue | ||||||||
(Superior Lien Bonds) Series A 5.75%9/1/30-21 § | 800,000 | 860,952 | ||||||
Riverside County Redevelopment Agency Tax Allocation Housing | ||||||||
Series A 6.00%10/1/39-20 § | 1,000,000 | 1,031,090 | ||||||
|
| |||||||
3,587,866 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 5.67% | ||||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 1,745,000 | 1,975,549 | ||||||
SeriesA-1 5.00% 7/1/58 | 1,835,000 | 2,104,506 | ||||||
Sacramento Transient Occupancy Tax Revenue | ||||||||
(Convention Center Complex) Senior Series A 5.00% 6/1/48 | 1,000,000 | 1,239,220 |
22
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Yucaipa Special Tax Community Facilities DistrictNo. 98-1 | ||||||||
(Chapman Heights) 5.375% 9/1/30 | 500,000 | $ | 530,295 | |||||
|
| |||||||
5,849,570 | ||||||||
|
| |||||||
State General Obligation Bonds – 7.43% | ||||||||
California | ||||||||
(Various Purpose) | ||||||||
4.00% 10/1/44 | 2,000,000 | 2,430,820 | ||||||
5.00% 4/1/32 | 300,000 | 431,811 | ||||||
5.00% 8/1/46 | 1,000,000 | 1,231,000 | ||||||
5.25% 4/1/35 | 1,000,000 | 1,090,020 | ||||||
5.25% 11/1/40 | 1,000,000 | 1,029,540 | ||||||
Commonwealth of Puerto Rico | ||||||||
Series A 8.00% 7/1/35 ‡ | 310,000 | 227,075 | ||||||
(Public Improvement) | ||||||||
Series A 5.00% 7/1/41 ‡ | 300,000 | 227,250 | ||||||
Series A 5.375% 7/1/33 ‡ | 350,000 | 287,875 | ||||||
Series B 5.75% 7/1/38 ‡ | 430,000 | 349,913 | ||||||
Series C 6.00% 7/1/39 ‡ | 450,000 | 369,563 | ||||||
|
| |||||||
7,674,867 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 10.25% | ||||||||
California Municipal Finance Authority Senior Lien | ||||||||
(LINXS APM Project) Series A 5.00% 12/31/47 (AMT) | 645,000 | �� | 787,680 | |||||
Long Beach Marina Revenue | ||||||||
(Alamitos Bay Marina Project) 5.00% 5/15/45 | 500,000 | 576,885 | ||||||
Los Angeles Department of Airports | ||||||||
(Los Angeles International Airport) | ||||||||
Senior Series D 5.00% 5/15/36 (AMT) | 1,000,000 | 1,185,740 | ||||||
Subordinate Series A 5.00% 5/15/33 (AMT) | 30,000 | 38,447 | ||||||
Riverside County Transportation Commission Senior Lien | ||||||||
(Current Interest Obligations) Series A 5.75% 6/1/44 | 500,000 | 568,035 | ||||||
Sacramento County Airport System Revenue | ||||||||
Series C 5.00% 7/1/39 (AMT) | 1,000,000 | 1,259,340 | ||||||
Subordinate Series B 5.00% 7/1/41 | 500,000 | 613,485 | ||||||
San Diego County Regional Airport Authority Revenue | ||||||||
Subordinate Series A 5.00% 7/1/47 | 375,000 | 470,070 | ||||||
San Diego Redevelopment Agency | ||||||||
(Centre City Redevelopment Project) Series A 6.40% 9/1/25 | 870,000 | 873,732 | ||||||
San Francisco City & County Airports Commission | ||||||||
(San Francisco International Airport) | ||||||||
Second Series A 5.00% 5/1/49 (AMT) | 1,000,000 | 1,264,000 | ||||||
Second Series B 5.00% 5/1/46 (AMT) | 500,000 | 600,115 |
23
Table of Contents
Schedules of investments | ||
DelawareTax-Free California Fund |
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Transportation Revenue Bonds(continued) | ||||||||
San Francisco City & County Airports Commission | ||||||||
(San Francisco International Airport) | ||||||||
Second Series E 5.00% 5/1/50 (AMT) | 1,000,000 | $ | 1,263,710 | |||||
San Francisco Municipal Transportation Agency Revenue | ||||||||
Series B 5.00% 3/1/37 | 1,000,000 | 1,084,700 | ||||||
|
| |||||||
10,585,939 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $91,797,409) | 101,123,451 | |||||||
|
| |||||||
| ||||||||
Short-Term Investment – 0.87% | ||||||||
| ||||||||
Variable Rate Demand Note – 0.87%¤ | ||||||||
California Series A2 | ||||||||
1.12% 5/1/34 (LOC - State Street Bank and Trust) | 900,000 | 900,000 | ||||||
|
| |||||||
Total Short-Term Investment(cost $900,000) | 900,000 | |||||||
|
| |||||||
Total Value of Securities – 98.81% | $ | 102,023,451 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $12,727,783, which represents 12.33% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
~ | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Stated rate in effect at Feb. 29, 2020. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
CHF – Collegiate Housing Foundation
24
Table of Contents
Summary of abbreviations (continued):
ICEF – Inner City Education Foundation
KIPP – Knowledge is Power Program
LLC – Limited Liability Corporation
LOC – Letter of Credit
NATL – Insured by National Public Finance Guarantee Corporation
NCCD – National Campus and Community Development
UCR – University of California Riverside
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
25
Table of Contents
Schedules of investments | ||
DelawareTax-Free Colorado Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
Municipal Bonds – 98.06% | ||||||||
Corporate Revenue Bonds – 1.41% | ||||||||
Denver City & County | ||||||||
(United Airlines Project) 5.00% 10/1/32 (AMT) | 415,000 | $ | 458,832 | |||||
Public Authority for Colorado Energy Natural Gas Revenue | ||||||||
6.50% 11/15/38 | 1,750,000 | 2,849,315 | ||||||
|
| |||||||
3,308,147 | ||||||||
|
| |||||||
Education Revenue Bonds – 12.25% | ||||||||
Board of Governors of the Colorado State University | ||||||||
System Enterprise Revenue | ||||||||
Series A 5.00% 3/1/43 | 2,480,000 | 3,680,766 | ||||||
Board of Trustees For Colorado Mesa University Enterprise Revenue | ||||||||
Series B 5.00% 5/15/44 | 1,000,000 | 1,275,980 | ||||||
Series B 5.00% 5/15/49 | 750,000 | 951,600 | ||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(Academy Charter School Project) 5.50% 5/1/36 (AGC) | 2,280,000 | 2,287,410 | ||||||
(Alexander Dawson School-Nevada Project) 5.00% 5/15/29 | 1,230,000 | 1,498,657 | ||||||
(Aspen Ridge School Project) | ||||||||
Series A 144A 5.00% 7/1/36 # | 500,000 | 545,280 | ||||||
Series A 144A 5.25% 7/1/46 # | 1,350,000 | 1,470,015 | ||||||
(Atlas Preparatory Charter School) 144A 5.25% 4/1/45 # | 1,300,000 | 1,383,798 | ||||||
(Charter School Project) 5.00% 7/15/37 | 1,150,000 | 1,247,612 | ||||||
(Community Leadership Academy, Inc. Second Campus Project) 7.45% 8/1/48 | 1,000,000 | 1,140,440 | ||||||
(Johnson & Wales University) Series A 5.25% 4/1/37 | 1,790,000 | 1,949,883 | ||||||
(Liberty Common Charter School Project) Series A | ||||||||
5.00% 1/15/39 | 1,000,000 | 1,111,880 | ||||||
(Littleton Preparatory Charter School Project) | ||||||||
5.00% 12/1/33 | 450,000 | 475,713 | ||||||
5.00% 12/1/42 | 540,000 | 566,476 | ||||||
(Loveland Classical Schools Project) | ||||||||
144A 5.00% 7/1/36 # | 625,000 | 690,087 | ||||||
144A 5.00% 7/1/46 # | 500,000 | 544,585 | ||||||
(Pinnacle Charter School Project) 5.00% 6/1/26 | 700,000 | 774,837 | ||||||
(Science Technology Engineering and Math School Project) | ||||||||
5.00% 11/1/44 | 890,000 | 980,255 | ||||||
5.00% 11/1/54 | 1,500,000 | 1,640,385 | ||||||
(Skyview Charter School) | ||||||||
144A 5.375% 7/1/44 # | 860,000 | 927,777 | ||||||
144A 5.50% 7/1/49 # | 870,000 | 941,088 |
26
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
Colorado Educational & Cultural Facilities Authority Revenue | ||||||||
(University of Denver Project) | ||||||||
Series A 4.00% 3/1/35 | 400,000 | $ | 461,716 | |||||
Series A 4.00% 3/1/36 | 550,000 | 633,649 | ||||||
(University of Lab Charter School) 5.00% 12/15/45 | 500,000 | 562,010 | ||||||
(Vail Mountain School Project) 4.00% 5/1/46 | 80,000 | 84,345 | ||||||
(Windsor Charter Academy Project) 144A 5.00% 9/1/46 # | 890,000 | 906,412 | ||||||
|
| |||||||
28,732,656 | ||||||||
|
| |||||||
Electric Revenue Bonds – 3.82% | ||||||||
Loveland Colorado Electric & Communications Enterprise Revenue | ||||||||
Series A 5.00% 12/1/44 | 2,185,000 | 2,749,801 | ||||||
Platte River Power Authority Revenue | ||||||||
Series JJ 5.00% 6/1/27 | 3,300,000 | 4,119,093 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.05% 7/1/42 ‡ | 170,000 | 135,787 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 95,000 | 76,119 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 705,000 | 564,881 | ||||||
Series WW 5.00% 7/1/28 ‡ | 660,000 | 527,175 | ||||||
Series XX 4.75% 7/1/26 ‡ | 105,000 | 83,344 | ||||||
Series XX 5.25% 7/1/40 ‡ | 295,000 | 236,369 | ||||||
Series XX 5.75% 7/1/36 ‡ | 365,000 | 294,281 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 85,000 | 67,469 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 140,000 | 112,175 | ||||||
|
| |||||||
8,966,494 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 25.87% | ||||||||
Colorado Health Facilities Authority Revenue | ||||||||
(AdventHealth Obligated Group) Series A 4.00% 11/15/43 | 4,000,000 | 4,734,160 | ||||||
(American Baptist) | ||||||||
7.625% 8/1/33 | 150,000 | 170,429 | ||||||
8.00% 8/1/43 | 1,000,000 | 1,141,110 | ||||||
(Bethesda Project) SeriesA-1 5.00% 9/15/48 | 2,250,000 | 2,675,745 | ||||||
(Cappella of Grand Junction Project) 144A 5.00% 12/1/54 # | 1,000,000 | 1,082,490 | ||||||
(Christian Living Community Project) | ||||||||
5.25% 1/1/37 | 1,500,000 | 1,575,675 | ||||||
6.375% 1/1/41 | 1,000,000 | 1,077,350 |
27
Table of Contents
Schedules of investments | ||
DelawareTax-Free Colorado Fund |
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Colorado Health Facilities Authority Revenue | ||||||||
(CommonSpirit Health) | ||||||||
SeriesA-1 4.00% 8/1/39 | 2,000,000 | $ | 2,336,720 | |||||
SeriesA-1 4.00% 8/1/44 | 2,000,000 | 2,309,060 | ||||||
SeriesA-2 4.00% 8/1/49 | 1,000,000 | 1,146,790 | ||||||
SeriesA-2 5.00% 8/1/38 | 1,500,000 | 1,893,630 | ||||||
SeriesA-2 5.00% 8/1/39 | 1,500,000 | 1,887,795 | ||||||
SeriesA-2 5.00% 8/1/44 | 2,000,000 | 2,490,000 | ||||||
(Covenant Retirement Communities) | ||||||||
Series A 5.00% 12/1/33 | 4,000,000 | 4,358,640 | ||||||
Series A 5.00% 12/1/35 | 1,000,000 | 1,156,280 | ||||||
(Craig Hospital Project) 5.00% 12/1/32 | 3,500,000 | 3,814,265 | ||||||
(Frasier Meadows Retirement Community Project) | ||||||||
Series A 5.25% 5/15/37 | 485,000 | 570,273 | ||||||
Series B 5.00% 5/15/48 | 660,000 | 704,537 | ||||||
(Mental Health Center Denver Project) | ||||||||
Series A 5.75% 2/1/44 | 2,000,000 | 2,260,360 | ||||||
(National Jewish Health Project) 5.00% 1/1/27 | 300,000 | 315,231 | ||||||
(Sanford Health) Series A 5.00% 11/1/44 | 4,500,000 | 5,762,070 | ||||||
(SCL Health System) | ||||||||
Series A 4.00% 1/1/37 | 2,150,000 | 2,584,945 | ||||||
Series A 4.00% 1/1/38 | 3,895,000 | 4,665,197 | ||||||
Series A 5.00% 1/1/44 | 3,050,000 | 3,437,015 | ||||||
(Sunny Vista Living Center) | ||||||||
Series A 144A 6.25% 12/1/50 # | 935,000 | 1,065,086 | ||||||
(Vail Valley Medical Center Project) 5.00% 1/15/35 | 1,000,000 | 1,213,880 | ||||||
(Valley View Hospital Association Project) Series A | 774,399 | |||||||
4.00% 5/15/35 | ||||||||
Denver Health & Hospital Authority Health Care Revenue | ||||||||
Series A 4.00% 12/1/39 | 1,000,000 | 1,163,170 | ||||||
Series A 4.00% 12/1/40 | 250,000 | 289,800 | ||||||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority | ||||||||
(Auxilio Mutuo) Series A 6.00% 7/1/33 | 1,945,000 | 2,029,821 | ||||||
|
| |||||||
60,685,923 | ||||||||
|
| |||||||
Housing Revenue Bonds – 0.08% | ||||||||
Colorado Housing & Finance Authority | ||||||||
(Single Family Program Class 1) | ||||||||
Series AA 4.50% 5/1/23 (GNMA) | 95,000 | 95,410 | ||||||
Series AA 4.50% 11/1/23 (GNMA) | 95,000 | 95,407 | ||||||
|
| |||||||
190,817 | ||||||||
|
|
28
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Lease Revenue Bonds – 1.98% | ||||||||
Colorado Department of Transportation Certificates of Participation | ||||||||
5.00% 6/15/34 | 660,000 | $ | 806,065 | |||||
5.00% 6/15/36 | 1,055,000 | 1,284,484 | ||||||
Denver Health & Hospital Authority | ||||||||
4.00% 12/1/38 | 750,000 | 864,187 | ||||||
Regional Transportation District Certificates of Participation | ||||||||
Series A 5.00% 6/1/33 | 1,500,000 | 1,684,350 | ||||||
|
| |||||||
4,639,086 | ||||||||
|
| |||||||
Local General Obligation Bonds – 11.20% | ||||||||
Adams & Weld Counties School District No. 27J Brighton | ||||||||
4.00% 12/1/30 | 300,000 | 347,148 | ||||||
4.00% 12/1/31 | 1,000,000 | 1,155,240 | ||||||
5.00% 12/1/32 | 500,000 | 639,020 | ||||||
Arapahoe County School District No. 6 Littleton | ||||||||
(Littleton Public Schools) | ||||||||
Series A 5.50% 12/1/33 | 1,000,000 | 1,355,500 | ||||||
Series A 5.50% 12/1/38 | 350,000 | 468,871 | ||||||
Beacon Point Metropolitan District | ||||||||
5.00% 12/1/30 (AGM) | 1,130,000 | 1,364,622 | ||||||
Boulder Valley School District No.Re-2 Boulder | ||||||||
Series A 4.00% 12/1/48 | 1,370,000 | 1,612,216 | ||||||
Central Colorado Water Conservancy District | ||||||||
(Limited Tax) 5.00% 12/1/33 | 1,000,000 | 1,135,100 | ||||||
Commerce City Northern Infrastructure General Improvement District | 2,125,000 | 2,351,461 | ||||||
5.00% 12/1/32 (AGM) | 2,125,000 | 2,351,461 | ||||||
Denver International Business Center Metropolitan District No. 1 | 350,000 | 357,280 | ||||||
5.00% 12/1/30 | 350,000 | 357,280 | ||||||
Eaton Area Park & Recreation District | ||||||||
5.25% 12/1/34 | 360,000 | 384,012 | ||||||
5.50% 12/1/38 | 455,000 | 487,837 | ||||||
El Paso County School District No 2. Harrison | ||||||||
5.00% 12/1/38 | 1,000,000 | 1,292,830 | ||||||
Grand River Hospital District | ||||||||
5.25% 12/1/35 (AGM) | 1,000,000 | 1,291,240 | ||||||
Jefferson County School District No.R-1 | ||||||||
5.25% 12/15/24 | 1,250,000 | 1,511,013 |
29
Table of Contents
Schedules of investments | ||
DelawareTax-Free Colorado Fund |
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Local General Obligation Bonds (continued) | ||||||||
Leyden Rock Metropolitan District No. 10 | ||||||||
Series A 5.00% 12/1/45 | 1,000,000 | $ | 1,056,370 | |||||
Sierra Ridge Metropolitan District No. 2 | ||||||||
Series A 5.50% 12/1/46 | 1,000,000 | 1,057,340 | ||||||
Weld County Reorganized School District No.Re-8 | ||||||||
5.00% 12/1/31 | 990,000 | 1,244,291 | ||||||
5.00% 12/1/32 | 660,000 | 828,062 | ||||||
Weld County School District No.Re-1 | ||||||||
5.00% 12/15/31 (AGM) | 1,000,000 | 1,250,790 | ||||||
Weld County School District No.Re-2 Eaton | ||||||||
5.00% 12/1/44 | 2,000,000 | 2,602,300 | ||||||
Weld County School District No.Re-3J | ||||||||
5.00% 12/15/34 (BAM) | 2,000,000 | 2,477,500 | ||||||
|
| |||||||
26,270,043 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 6.98% | ||||||||
Colorado Health Facilities Authority Revenue (Catholic Health Initiatives) | ||||||||
Series A 5.00%2/1/41-21 § | 2,250,000 | 2,335,185 | ||||||
Series A 5.25%2/1/33-21 § | 1,000,000 | 1,040,120 | ||||||
Series A 5.25%1/1/45-23 § | 2,000,000 | 2,243,540 | ||||||
(NCMC Project) 4.00%5/15/32-26 § | 2,000,000 | 2,374,360 | ||||||
(The Evangelical Lutheran Good Samaritan Society Project) 5.625%6/1/43-23 § | 1,150,000 | 1,327,744 | ||||||
(Total Long-Term Care National Obligated Group Project) | ||||||||
Series A 6.00%11/15/30-20 § | 1,365,000 | 1,414,140 | ||||||
Series A 6.25%11/15/40-20 § | 750,000 | 778,305 | ||||||
Denver Health & Hospital Authority Health Care Revenue | ||||||||
(Recovery Zone Facilities) 5.625%12/1/40-20 § | 2,500,000 | 2,587,975 | ||||||
University of Colorado | ||||||||
Series A 5.00%6/1/33-23 § | 2,000,000 | 2,272,620 | ||||||
|
| |||||||
16,373,989 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 20.57% | ||||||||
Broomfield Colorado Sales & Use Tax Revenue | ||||||||
5.00% 12/1/33 | 1,000,000 | 1,273,060 | ||||||
Central Platte Valley Metropolitan District | ||||||||
5.00% 12/1/43 | 725,000 | 795,644 | ||||||
Commerce City | ||||||||
5.00% 8/1/44 (AGM) | 1,500,000 | 1,718,760 | ||||||
Denver Convention Center Hotel Authority Revenue | ||||||||
5.00% 12/1/40 | 2,660,000 | 3,144,918 |
30
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Denver International Business Center Metropolitan District No. 1 | ||||||||
5.375% 12/1/35 | 1,750,000 | $ | 1,788,675 | |||||
Fountain Urban Renewal Authority Tax Increment Revenue | ||||||||
(Academy Highlands Project) Series A 5.50% 11/1/44 | 1,375,000 | 1,497,361 | ||||||
Guam Government Business Privilege Tax Revenue | ||||||||
Series A 5.125% 1/1/42 | 1,250,000 | 1,323,350 | ||||||
Series A 5.25% 1/1/36 | 1,675,000 | 1,782,451 | ||||||
Lincoln Park Metropolitan District | ||||||||
5.00% 12/1/46 (AGM) | 1,000,000 | 1,220,180 | ||||||
Plaza Metropolitan District No. 1 | ||||||||
144A 5.00% 12/1/40 # | 1,265,000 | 1,337,333 | ||||||
Prairie Center Metropolitan District No. 3 | ||||||||
Series A 144A 5.00% 12/15/41 # | 1,000,000 | 1,097,420 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 3,905,000 | 4,420,929 | ||||||
SeriesA-1 5.00% 7/1/58 | 2,967,000 | 3,402,763 | ||||||
SeriesA-2 4.536% 7/1/53 | 3,000,000 | 3,349,170 | ||||||
Regional Transportation District | ||||||||
(Denver Transit Partners Eagle P3 Project) | ||||||||
6.00% 1/15/34 | 1,450,000 | 1,471,939 | ||||||
6.00% 1/15/41 | 2,400,000 | 2,436,312 | ||||||
Certificates of Participation | ||||||||
Series A 5.375% 6/1/31 | 1,540,000 | 1,556,078 | ||||||
Regional Transportation District Sales Tax Revenue | ||||||||
(FasTracks Project) | ||||||||
Series A 5.00% 11/1/30 | 670,000 | 839,403 | ||||||
Series A 5.00% 11/1/31 | 1,495,000 | 1,869,199 | ||||||
Series A 5.00% 11/1/36 | 2,750,000 | 3,419,955 | ||||||
Series B 5.00% 11/1/33 | 1,865,000 | 2,397,644 | ||||||
Solaris Metropolitan District No. 3 | ||||||||
(Limited Tax Convertible) Series A 5.00% 12/1/46 | 500,000 | 532,070 | ||||||
Southlands Metropolitan District No. 1 | ||||||||
SeriesA-1 5.00% 12/1/37 | 300,000 | 352,038 | ||||||
SeriesA-1 5.00% 12/1/47 | 700,000 | 810,726 | ||||||
Sterling Ranch Community Authority Board | ||||||||
Series A 5.75% 12/1/45 | 975,000 | 1,023,077 | ||||||
Tallyn’s Reach Metropolitan District No. 3 | ||||||||
(Limited Tax Convertible) 5.125% 11/1/38 | 740,000 | 800,724 |
31
Table of Contents
Schedules of investments | ||
DelawareTax-Free Colorado Fund |
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Thornton Development Authority | ||||||||
(East 144th Avenue &I-25 Project) | ||||||||
Series B 5.00% 12/1/35 | 485,000 | $ | 570,035 | |||||
Series B 5.00% 12/1/36 | 810,000 | 951,620 | ||||||
Virgin Islands Public Finance Authority | ||||||||
(Matching Fund Loan Senior Lien) | ||||||||
5.00% 10/1/29 (AGM) | 1,000,000 | 1,090,070 | ||||||
|
| |||||||
48,272,904 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.48% | ||||||||
Commonwealth of Puerto Rico | ||||||||
Series A 5.00% 7/1/41 ‡ | 680,000 | 515,100 | ||||||
Series A 5.375% 7/1/33 ‡ | 675,000 | 555,187 | ||||||
Series A 8.00% 7/1/35 ‡ | 1,215,000 | 889,987 | ||||||
Series B 5.75% 7/1/38 ‡ | 960,000 | 781,200 | ||||||
Series C 6.00% 7/1/39 ‡ | 890,000 | 730,913 | ||||||
|
| |||||||
3,472,387 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 10.01% | ||||||||
Colorado High Performance Transportation Enterprise Revenue | ||||||||
(C-470 Express Lanes) 5.00% 12/31/56 | 2,000,000 | 2,226,580 | ||||||
(Senior U.S. 36 &I-25 Managed Lanes) | ||||||||
5.75% 1/1/44 (AMT) | 2,140,000 | 2,340,240 | ||||||
Denver City & County Airport System Revenue | ||||||||
Series A 4.00% 12/1/48 (AMT) | 400,000 | 459,560 | ||||||
Series A 5.00% 11/15/30 (AMT) | 1,750,000 | 2,215,465 | ||||||
Series A 5.00% 12/1/48 (AMT) | 2,000,000 | 2,496,400 | ||||||
Series B 5.00% 11/15/30 | 1,000,000 | 1,103,740 | ||||||
Series B 5.00% 11/15/32 | 1,000,000 | 1,102,050 | ||||||
Series B 5.00% 11/15/37 | 8,000,000 | 8,793,920 | ||||||
E-470 Public Highway Authority | ||||||||
Series C 5.25% 9/1/25 | 690,000 | 705,063 | ||||||
Series C 5.375% 9/1/26 | 2,000,000 | 2,044,200 | ||||||
|
| |||||||
23,487,218 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 2.41% | ||||||||
Arapahoe County Water & Wastewater Authority | ||||||||
4.00% 12/1/37 | 1,000,000 | 1,212,530 | ||||||
4.00% 12/1/38 | 1,845,000 | 2,230,826 | ||||||
Dominion Water & Sanitation District | ||||||||
6.00% 12/1/46 | 750,000 | 806,445 | ||||||
Douglas County Centennial Water & Sanitation District | ||||||||
4.00% 12/1/38 | 500,000 | 592,355 |
32
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Water & Sewer Revenue Bonds (continued) | ||||||||
Guam Government Waterworks Authority Water & Wastewater System Revenue | ||||||||
5.00% 7/1/37 | 675,000 | $ | 812,288 | |||||
|
| |||||||
5,654,444 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $211,957,646) | 230,054,108 | |||||||
|
| |||||||
Number of shares | ||||||||
Short-Term Investments – 1.08% | ||||||||
Money Market Mutual Fund – 0.87% | ||||||||
DreyfusAMT-Free Tax Exempt Cash Management Fund - Institutional Shares(seven-day effective yield 0.92%) | 2,027,358 | 2,027,358 | ||||||
|
| |||||||
2,027,358 | ||||||||
|
| |||||||
Principal amount° | ||||||||
Variable Rate Demand Note – 0.21%¤ | ||||||||
Colorado Educational & Cultural Facilities Authority Revenue (National Jewish Federation Bond Program) | ||||||||
SeriesF-2 1.22% 7/1/41 (LOC - Northern Trust Company) | 500,000 | 500,000 | ||||||
|
| |||||||
500,000 | ||||||||
|
| |||||||
Total Short-Term Investments(cost $2,527,358) | 2,527,358 | |||||||
|
| |||||||
Total Value of Securities – 99.14% | ||||||||
(cost $214,485,004) | $ | 232,581,466 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $11,991,371, which represents 5.11% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
33
Table of Contents
Schedules of investments | ||
DelawareTax-Free Colorado Fund |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
GNMA – Government National Mortgage Association collateral
LOC – Letter of Credit
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
34
Table of Contents
Schedules of investments | ||
DelawareTax-Free Idaho Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
Municipal Bonds – 104.47% |
| |||||||
Corporate Revenue Bonds – 2.99% | ||||||||
Nez Perce County Pollution Control Revenue | ||||||||
(Potlatch Project) 2.75% 10/1/24 | 1,250,000 | $ | 1,314,900 | |||||
Power County Industrial Development Revenue | ||||||||
(FMC Project) 6.45% 8/1/32 (AMT) | 2,000,000 | 2,009,360 | ||||||
|
| |||||||
3,324,260 | ||||||||
|
| |||||||
Education Revenue Bonds – 24.01% | ||||||||
Boise State University Revenue | ||||||||
(General Project) | ||||||||
Series A 4.00% 4/1/22 | 485,000 | 515,895 | ||||||
Series A 4.00% 4/1/37 | 1,250,000 | 1,309,763 | ||||||
Series A 5.00% 4/1/42 | 1,350,000 | 1,447,483 | ||||||
Series A 5.00% 4/1/47 | 500,000 | 612,180 | ||||||
Series A 5.00% 4/1/48 | 1,000,000 | 1,252,000 | ||||||
Idaho Housing & Finance Association | ||||||||
(Compass Public Charter School Project) | ||||||||
Series A 144A 6.00% 7/1/39 # | 370,000 | 443,697 | ||||||
Series A 144A 6.00% 7/1/49 # | 595,000 | 704,450 | ||||||
Series A 144A 6.00% 7/1/54 # | 570,000 | 670,337 | ||||||
(Idaho Arts Charter School Project) | ||||||||
Series A 5.00% 12/1/38 | 1,000,000 | 1,144,500 | ||||||
Series A 144A 5.00% 12/1/46 # | 1,000,000 | 1,112,270 | ||||||
(North Star Charter School Project) | ||||||||
Capital Appreciation Subordinate Series B 144A 4.88% 7/1/49 #^ | 2,888,155 | 653,821 | ||||||
Series A 6.75% 7/1/48 | 529,151 | 585,670 | ||||||
(Victory Charter School Project) Series B 5.00% 7/1/39 | 1,000,000 | 1,139,580 | ||||||
(Xavier Charter School Project) Series A 5.00% 6/1/50 | 1,275,000 | 1,423,601 | ||||||
Idaho State University Revenue | ||||||||
3.00% 4/1/49 | 1,700,000 | 1,769,887 | ||||||
5.00% 4/1/40 | 250,000 | 321,155 | ||||||
5.00% 4/1/43 | 250,000 | 317,707 | ||||||
5.00% 4/1/44 | 250,000 | 317,017 | ||||||
University of Idaho | ||||||||
Series 2011 5.25% 4/1/41 • | 1,710,000 | 1,783,256 | ||||||
Series A 4.00% 4/1/41 (BAM) | 1,000,000 | 1,193,600 | ||||||
Series A 5.00% 4/1/41 | 1,000,000 | 1,261,980 | ||||||
Series A 5.00% 4/1/45 (BAM) | 1,540,000 | 1,984,352 | ||||||
Series A 5.00% 4/1/50 (BAM) | 2,500,000 | 3,211,925 | ||||||
Series B 5.00% 4/1/28 | 1,000,000 | 1,003,120 | ||||||
Series B 5.00% 4/1/32 | 500,000 | 501,555 | ||||||
|
| |||||||
26,680,801 | ||||||||
|
|
35
Table of Contents
Schedules of investments | ||
DelawareTax-Free Idaho Fund |
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Electric Revenue Bonds – 4.07% | ||||||||
Boise-Kuna Irrigation District Revenue | ||||||||
(Idaho Arrowrock Hydroelectric Project) 5.00% 6/1/34 | 2,000,000 | $ | 2,337,660 | |||||
Guam Power Authority Revenue | ||||||||
Series A 5.00% 10/1/40 | 1,000,000 | 1,190,420 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.05% 7/1/42 ‡ | 75,000 | 59,906 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 45,000 | 36,056 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 345,000 | 276,431 | ||||||
Series WW 5.00% 7/1/28 ‡ | 320,000 | 255,600 | ||||||
Series XX 4.75% 7/1/26 ‡ | 50,000 | 39,688 | ||||||
Series XX 5.25% 7/1/40 ‡ | 135,000 | 108,169 | ||||||
Series XX 5.75% 7/1/36 ‡ | 175,000 | 141,094 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 40,000 | 31,750 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 60,000 | 48,075 | ||||||
|
| |||||||
4,524,849 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 8.85% | ||||||||
Idaho Health Facilities Authority Revenue | ||||||||
(Madison Memorial Hospital Project) 5.00% 9/1/37 | 1,350,000 | 1,551,191 | ||||||
(St. Luke’s Health System Project) | ||||||||
Series A 5.00% 3/1/27 | 1,000,000 | 1,245,200 | ||||||
Series A 5.00% 3/1/47 | 1,500,000 | 1,578,855 | ||||||
(Trinity Health Credit Group) | ||||||||
Series ID 4.00% 12/1/43 | 1,000,000 | 1,169,450 | ||||||
Series ID 5.00% 12/1/46 | 750,000 | 921,135 | ||||||
(Valley Vista Care Corporation) | ||||||||
Series A 5.25% 11/15/37 | 1,005,000 | 1,094,435 | ||||||
Series A 5.25% 11/15/47 | 1,130,000 | 1,211,914 | ||||||
Puerto Rico Industrial Tourist Educational Medical & | ||||||||
Environmental Control Facilities Financing Authority | ||||||||
(Hospital Auxilio Mutuo Obligated Group Project) | ||||||||
Series A 6.00% 7/1/33 | 1,020,000 | 1,064,482 | ||||||
|
| |||||||
9,836,662 | ||||||||
|
| |||||||
Housing Revenue Bonds – 4.38% | ||||||||
Idaho Housing & Finance Association | ||||||||
Series A 4.50% 1/21/49 (GNMA) | 894,864 | 952,323 | ||||||
(Federal Highway Trust Fund) Series A 5.00% 7/15/31 | 80,000 | 105,804 | ||||||
Idaho Housing & Finance Association Single Family | ||||||||
Mortgage Revenue | ||||||||
Series A 3.05% 7/1/39 (GNMA) | 1,665,000 | 1,765,133 | ||||||
Series A 3.25% 1/1/43 (GNMA) | 820,000 | 873,661 | ||||||
Series A Class II 4.375% 7/1/32 | 330,000 | 332,795 |
36
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Housing Revenue Bonds(continued) | ||||||||
Idaho Housing & Finance Association Single Family | ||||||||
Mortgage Revenue | ||||||||
Series C 3.00% 1/1/43 (FHA) | 800,000 | $ | 841,752 | |||||
|
| |||||||
4,871,468 | ||||||||
|
| |||||||
Lease Revenue Bonds – 10.54% | ||||||||
Boise Urban Renewal Agency 5.00% 12/15/31 | 750,000 | 916,177 | ||||||
5.00% 12/15/32 | 750,000 | 914,535 | ||||||
Idaho Fish & Wildlife Foundation | ||||||||
(Idaho Department of Fish & Game Headquarters Office Project) | ||||||||
4.00% 12/1/36 | 750,000 | 912,720 | ||||||
4.00% 12/1/39 | 1,605,000 | 1,935,823 | ||||||
4.00% 12/1/42 | 1,300,000 | 1,549,457 | ||||||
4.00% 12/1/44 | 250,000 | 295,455 | ||||||
(Idaho Department of Fish & Game Nampa Regional | ||||||||
Office Project) 5.00% 12/1/41 | 200,000 | 251,246 | ||||||
Idaho Housing & Finance Association Economic | ||||||||
Development Facilities Revenue | ||||||||
(TDF Facilities Project) | ||||||||
Series A 6.50% 2/1/26 | 1,350,000 | 1,414,975 | ||||||
Series A 7.00% 2/1/36 | 1,500,000 | 1,573,185 | ||||||
Idaho State Building Authority Revenue | ||||||||
(Capitol Mall Parking Project) | ||||||||
Series A 4.50% 9/1/26 | 485,000 | 545,620 | ||||||
Series A 4.50% 9/1/27 | 505,000 | 567,564 | ||||||
(Department of Health & Welfare Project) Series B 4.00% 9/1/48 | 750,000 | 837,997 | ||||||
|
| |||||||
11,714,754 | ||||||||
|
| |||||||
Local General Obligation Bonds – 23.39% | ||||||||
Ada & Boise Counties Independent School District Boise | ||||||||
City 5.00% 8/1/33 | 1,010,000 | 1,264,187 | ||||||
5.00% 8/1/34 | 1,500,000 | 1,874,565 | ||||||
5.00% 8/1/35 | 1,160,000 | 1,449,084 | ||||||
5.00% 8/1/36 | 500,000 | 623,095 | ||||||
Ada & Canyon Counties Joint School District No. 2 | ||||||||
Meridian 4.50% 7/30/22 | 1,500,000 | 1,522,500 | ||||||
Ada & Canyon Counties Joint School District No. 3 Kuna | ||||||||
(Sales Tax & Credit Enhancement Guaranty) | ||||||||
Series B 5.00% 9/15/33 | 1,670,000 | 2,096,969 | ||||||
Series B 5.00% 9/15/35 | 1,100,000 | 1,376,771 |
37
Table of Contents
Schedules of investments | ||
DelawareTax-Free Idaho Fund |
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Local General Obligation Bonds(continued) | ||||||||
Canyon County School District No. 131 Nampa | ||||||||
(School Board Guaranteed) | ||||||||
Series B 5.00% 8/15/23 | 1,295,000 | $ | 1,479,654 | |||||
Canyon County School District No. 132 Caldwell | ||||||||
Series A 5.00% 9/15/22 (AGM) | 1,725,000 | 1,730,417 | ||||||
Series A 5.00% 9/15/23 (AGM) | 1,810,000 | 1,815,629 | ||||||
Canyon County School District No. 139 Vallivue | ||||||||
(School Board Guaranteed) 5.00% 9/15/33 | 1,000,000 | 1,133,620 | ||||||
Series B 5.00% 9/15/24 | 1,480,000 | 1,634,024 | ||||||
Idaho Bond Bank Authority Revenue | ||||||||
Series A 4.00% 9/15/33 | 530,000 | 618,187 | ||||||
Series A 4.00% 9/15/37 | 1,000,000 | 1,157,480 | ||||||
Series C 5.00% 9/15/42 | 500,000 | 623,240 | ||||||
Madison County School District No. 321 Rexburg | ||||||||
(Sales Tax & Credit Enhancement Guaranty) | ||||||||
Series B 5.00% 8/15/25 | 1,080,000 | 1,319,036 | ||||||
Series B 5.00% 8/15/26 | 500,000 | 629,475 | ||||||
Nez Perce County Independent School District No. 1 | ||||||||
(Sales Tax & Credit Enhancement Guaranty) | ||||||||
Series B 5.00% 9/15/36 | 1,000,000 | 1,247,030 | ||||||
Series B 5.00% 9/15/37 | 1,000,000 | 1,242,470 | ||||||
Twin Falls County School District No. 411 | ||||||||
(School Board Guaranteed) Series A 4.75% 9/15/37 | 1,000,000 | 1,150,360 | ||||||
|
| |||||||
25,987,793 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 5.28% | ||||||||
Idaho Health Facilities Authority Revenue | ||||||||
(St. Luke’s Regional Medical Center Project) 5.00%7/1/35-20 (AGM)§ | 750,000 | 760,357 | ||||||
(Trinity Health Credit Group) | ||||||||
Series D 4.50%12/1/37-20§ | 1,385,000 | 1,423,254 | ||||||
Series ID 5.00%12/1/32-22§ | 1,000,000 | 1,092,520 | ||||||
Idaho State Building Authority Revenue | ||||||||
Series B 5.00%9/1/40-22§ | 1,250,000 | 1,380,063 | ||||||
Nampa Development Corporation Revenue | ||||||||
(Library Square Project) 144A 5.00%9/1/31-24#§ | 1,000,000 | 1,204,700 | ||||||
|
| |||||||
5,860,894 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 15.71% | ||||||||
Guam Government Business Privilege Tax Revenue | ||||||||
Series A 5.125% 1/1/42 | 545,000 | 576,981 | ||||||
Series A 5.25% 1/1/36 | 705,000 | 750,226 | ||||||
SeriesB-1 5.00% 1/1/42 | 1,425,000 | 1,499,627 |
38
Table of Contents
Principal amount° | Value (US $) | |||||||
Municipal Bonds(continued) | ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
Idaho Water Resource Board Loan Program Revenue | ||||||||
(Ground Water Rights Mitigation) Series A 5.00% 9/1/32 | 3,565,000 | $ | 3,897,935 | |||||
Ketchum Urban Renewal Agency Tax Increment Revenue 5.50% 10/15/34 | 1,500,000 | 1,521,675 | ||||||
Nampa Development Corporation Revenue 5.90% 3/1/30 | 1,000,000 | 1,001,310 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.55% 7/1/40 | 875,000 | 986,711 | ||||||
SeriesA-1 4.75% 7/1/53 | 3,635,000 | 4,115,256 | ||||||
SeriesA-1 5.00% 7/1/58 | 1,446,000 | 1,658,374 | ||||||
SeriesA-1 6.801% 7/1/51 ^ | 3,285,000 | 710,118 | ||||||
SeriesA-2 4.329% 7/1/40 | 420,000 | 466,788 | ||||||
Virgin Islands Public Finance Authority Revenue | ||||||||
(Senior Lien-Matching Fund Loan Note) 5.00% 10/1/29 | ||||||||
(AGM) | 250,000 | 272,518 | ||||||
|
| |||||||
17,457,519 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.48% | ||||||||
Commonwealth of Puerto Rico | ||||||||
Series A 5.00% 7/1/41 ‡ | 325,000 | 246,187 | ||||||
Series A 5.375% 7/1/33 ‡ | 365,000 | 300,213 | ||||||
Series A 8.00% 7/1/35 ‡ | 470,000 | 344,275 | ||||||
Series B 5.75% 7/1/38 ‡ | 460,000 | 374,325 | ||||||
Series C 6.00% 7/1/39 ‡ | 465,000 | 381,881 | ||||||
|
| |||||||
1,646,881 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 2.50% | ||||||||
Boise City Airport Revenue | ||||||||
(Air Terminal Facilities Project) 5.75% 9/1/20 (AGM) (AMT) | 500,000 | 511,685 | ||||||
(Parking Facilities Project) 4.00% 9/1/32 | 2,180,000 | 2,265,587 | ||||||
|
| |||||||
2,777,272 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 1.27% | ||||||||
Guam Government Waterworks Authority 5.00% 7/1/40 | 370,000 | 442,394 | ||||||
5.00% 1/1/46 | 835,000 | 969,627 | ||||||
|
| |||||||
1,412,021 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $108,611,965) | 116,095,174 | |||||||
|
|
39
Table of Contents
Schedules of investments | ||
DelawareTax-Free Idaho Fund |
Number of shares | Value (US $) | |||||||
Short-Term Investments – 0.28% | ||||||||
Money Market Mutual Fund – 0.08% | ||||||||
DreyfusAMT-Free Tax Exempt Cash Management Fund – Institutional Shares(seven-day effective yield 0.92%) | 86,924 | $ | 86,924 | |||||
|
| |||||||
86,924 | ||||||||
|
| |||||||
Principal amount° | ||||||||
Variable Rate Demand Note – 0.20%¤ | ||||||||
Idaho Health Facilities Authority Revenue (St. Luke’s | ||||||||
Health System Project) Series C 1.16% 3/1/48 (LOC – US Bank N.A.) | 225,000 | 225,000 | ||||||
|
| |||||||
225,000 | ||||||||
|
| |||||||
Total Short-Term Investments(cost $311,924) | 311,924 | |||||||
|
| |||||||
Total Value of Securities – 104.75% | ||||||||
(cost $108,923,889) | $ | 116,407,098 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $4,789,275, which represents 4.31% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Feb. 29, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
40
Table of Contents
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
FHA – Federal Housing Administration
GNMA – Government National Mortgage Association collateral
ICE – Intercontinental Exchange
LIBOR – London interbank offered rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LOC – Letter of Credit
N.A. – National Association
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
41
Table of Contents
Schedules of investments | ||
DelawareTax-Free New York Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 99.80% | ||||||||
| ||||||||
Corporate Revenue Bonds – 5.72% | ||||||||
Erie County Tobacco Asset Securitization | ||||||||
(Asset-Backed) Series A 1.53% 6/1/60 ^ | 25,400,000 | $ | 745,744 | |||||
New York Liberty Development | ||||||||
(Goldman Sachs Headquarters Issue) 5.25% 10/1/35 | 1,000,000 | 1,446,010 | ||||||
New York Transportation Development Corporation Special Facilities Revenue | ||||||||
(Delta Air Lines - LaGuardia Airport Terminals C&D Redevelopment Project) 5.00% 1/1/36 (AMT) | 1,000,000 | 1,233,410 | ||||||
Suffolk Tobacco Asset Securitization | ||||||||
Series B 5.25% 6/1/37 | 700,000 | 743,470 | ||||||
TSASC Revenue | ||||||||
(Senior) Fiscal 2017 Series A 5.00% 6/1/41 | 900,000 | 1,044,333 | ||||||
|
| |||||||
5,212,967 | ||||||||
|
| |||||||
Education Revenue Bonds – 21.19% | ||||||||
Albany Industrial Development Agency Civic Facilities Revenue | ||||||||
(Brighter Choice Charter School) Series A 5.00% 4/1/37 | 250,000 | 250,523 | ||||||
Buffalo & Erie County Industrial Land Development | ||||||||
(Tapestry Charter School Project) Series A 5.00% 8/1/52 | 500,000 | 565,640 | ||||||
Build NYC Resource | ||||||||
(Bronx Charter School for Excellence Project) | ||||||||
Series A 5.00% 4/1/33 | 500,000 | 543,210 | ||||||
Series A 5.50% 4/1/43 | 500,000 | 545,575 | ||||||
(Inwood Academy for Leadership Charter School Project) Series A 144A 5.50% 5/1/48 # | 500,000 | 594,650 | ||||||
(Manhattan College Project) 5.00% 8/1/47 | 500,000 | 606,480 | ||||||
(Metropolitan College of New York Project) 5.50% 11/1/44 | 600,000 | 655,482 | ||||||
(Metropolitan Lighthouse Charter School Project) | ||||||||
Series A 144A 5.00% 6/1/52 # | 250,000 | 280,180 | ||||||
(New Dawn Charter Schools Project) 144A 5.75% 2/1/49 # | 500,000 | 543,445 | ||||||
(The Packer Collegiate Institute Project) 5.00% 6/1/40 | 750,000 | 879,765 | ||||||
Dutchess County Local Development | ||||||||
(The Culinary Institute of America Project) SeriesA-1 5.00% 7/1/46 | 300,000 | 356,589 | ||||||
Hempstead Town Local Development | ||||||||
(Hofstra University Project) 5.00% 7/1/42 | 500,000 | 609,805 | ||||||
Monroe County Industrial Development Revenue | ||||||||
(St. John Fisher College Project) Series A 5.50% 6/1/39 | 300,000 | 354,438 | ||||||
(University of Rochester Project) Series C 4.00% 7/1/43 | 500,000 | 573,850 |
42
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
New York City Trust for Cultural Resources | ||||||||
(Alvin Ailey Dance Foundation) Series A 4.00% 7/1/46 | 1,000,000 | $ | 1,110,810 | |||||
(Whitney Museum of American Art) 5.00% 7/1/31 | 500,000 | 516,610 | ||||||
New York State Dormitory Authority | ||||||||
(Barnard College) Series A 5.00% 7/1/35 | 400,000 | 477,640 | ||||||
(Fordham University) 5.00% 7/1/44 | 650,000 | 750,191 | ||||||
(Marymount Manhattan College) 5.00% 7/1/24 | 350,000 | 355,771 | ||||||
(New York University) 5.50% 7/1/40 (AMBAC) | 740,000 | 1,144,958 | ||||||
(Pratt Institute) Series A 5.00% 7/1/34 | 500,000 | 580,140 | ||||||
(Touro College & University) Series A 5.50% 1/1/44 | 1,000,000 | 1,147,920 | ||||||
(University of Rochester Project) Unrefunded Series A 5.125% 7/1/39 | 20,000 | 20,062 | ||||||
Onondaga Civic Development Revenue | ||||||||
(Le Moyne College Project) 5.20% 7/1/29 | 500,000 | 507,505 | ||||||
Series B 4.00% 7/1/40 | 300,000 | 355,641 | ||||||
Onondaga County Trust For Cultural Resources | ||||||||
(Syracuse University Project) 4.00% 12/1/49 | 1,000,000 | 1,192,850 | ||||||
St. Lawrence County Industrial Development Agency Civic Development Revenue | ||||||||
(St. Lawrence University Project) Series A 4.00% 7/1/43 | 1,000,000 | 1,115,390 | ||||||
Tompkins County Development | ||||||||
(Ithaca College Project) | ||||||||
5.00% 7/1/34 | 750,000 | 892,845 | ||||||
5.00% 7/1/41 | 500,000 | 621,395 | ||||||
Troy Industrial Development Authority | ||||||||
(Rensselaer Polytechnic Institute Project) Series E 5.20% 4/1/37 | 500,000 | 530,615 | ||||||
Yonkers Economic Development Educational Revenue | ||||||||
(Charter School of Educational Excellence Project) | ||||||||
Series A 6.25% 10/15/40 | 600,000 | 615,348 | ||||||
|
| |||||||
19,295,323 | ||||||||
|
| |||||||
Electric Revenue Bonds – 4.74% | ||||||||
Long Island Power Authority Electric System Revenue | ||||||||
5.00% 9/1/37 | 450,000 | 572,310 | ||||||
5.00% 9/1/47 | 500,000 | 613,825 | ||||||
Series A 5.00% 9/1/44 | 750,000 | 864,487 | ||||||
New York State Power Authority Revenue | ||||||||
Series A 5.00% 11/15/38 | 500,000 | 533,455 | ||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series A 5.05% 7/1/42 ‡ | 65,000 | 51,919 |
43
Table of Contents
Schedules of investments | ||
DelawareTax-Free New York Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Electric Revenue Bonds(continued) | ||||||||
Puerto Rico Electric Power Authority Revenue | ||||||||
Series AAA 5.25% 7/1/25 ‡ | 35,000 | $ | 28,044 | |||||
Series CCC 5.25% 7/1/27 ‡ | 280,000 | 224,350 | ||||||
Series WW 5.00% 7/1/28 ‡ | 270,000 | 215,663 | ||||||
Series XX 4.75% 7/1/26 ‡ | 40,000 | 31,750 | ||||||
Series XX 5.25% 7/1/40 ‡ | 110,000 | 88,137 | ||||||
Series XX 5.75% 7/1/36 ‡ | 140,000 | 112,875 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 30,000 | 23,813 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 50,000 | 40,063 | ||||||
Utility Debt Securitization Authority | ||||||||
(Restructuring Bonds) 5.00% 12/15/37 | 750,000 | 916,088 | ||||||
|
| |||||||
4,316,779 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 14.77% | ||||||||
Buffalo & Erie County Industrial Land Development | ||||||||
(Catholic Health System Project) 5.25% 7/1/35 | 250,000 | 297,895 | ||||||
Build NYC Resource | ||||||||
(The Children’s Aid Society Project) 4.00% 7/1/49 | 1,000,000 | 1,183,640 | ||||||
Dutchess County Local Development | ||||||||
(Nuvance Health) Series B 4.00% 7/1/49 | 1,000,000 | 1,155,820 | ||||||
Guilderland Industrial Development Agency | ||||||||
(Albany Place Development Project) Series A 144A 5.875% 1/1/52 # | 500,000 | 522,360 | ||||||
Monroe County Industrial Development | ||||||||
(The Rochester General Hospital Project) | ||||||||
5.00% 12/1/36 | 405,000 | 494,497 | ||||||
5.00% 12/1/46 | 540,000 | 652,109 | ||||||
(The Unity Hospital of Rochester Project) 5.50% 8/15/40 (FHA) | 585,000 | 609,769 | ||||||
Nassau County Local Economic Assistance | ||||||||
(Catholic Health Services of Long Island Obligated Group Project) 5.00% 7/1/33 | 725,000 | 833,141 | ||||||
New York City Trust for Cultural Resources | ||||||||
(Carnegie Hall) 5.00% 12/1/39 | 250,000 | 334,505 | ||||||
New York State Dormitory Authority | ||||||||
(Montefiore Obligated Group) | ||||||||
Series A 4.00% 8/1/38 | 1,000,000 | 1,165,380 | ||||||
Series A 4.00% 9/1/50 | 1,000,000 | 1,159,790 | ||||||
(NYU Langone Hospitals Obligated Group) Series A 4.00% 7/1/53 | 1,000,000 | 1,177,820 | ||||||
New York State Dormitory Authority RevenueNon-State Supported Debt | ||||||||
(New York University Hospitals Center) Series A 4.00% 7/1/40 | 465,000 | 531,467 |
44
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
New York State Dormitory Authority RevenueNon-State Supported Debt | ||||||||
(Orange Regional Medical Center Obligated Group) | ||||||||
144A 5.00% 12/1/34 # | 500,000 | $ | 607,485 | |||||
144A 5.00% 12/1/45 # | 700,000 | 801,409 | ||||||
Orange County Funding Assisted Living Residence Revenue | ||||||||
(The Hamlet at Wallkill Assisted Living Project) 6.50% 1/1/46 | 400,000 | 413,908 | ||||||
Southold Local Development Revenue | ||||||||
(Peconic Landing at Southold Project) 5.00% 12/1/45 | 750,000 | 829,117 | ||||||
Suffolk County Economic Development Revenue | ||||||||
(Peconic Landing at Southhold Project) 6.00% 12/1/40 | 650,000 | 675,227 | ||||||
|
| |||||||
13,445,339 | ||||||||
|
| |||||||
Lease Revenue Bonds – 6.85% | ||||||||
Hudson Yards Infrastructure | ||||||||
Unrefunded Fiscal 2012 Series A 5.75% 2/15/47 | 385,000 | 402,059 | ||||||
MTA Hudson Rail Yards Trust Obligations | ||||||||
(The Metropolitan Transportation Authority) Series A 5.00% 11/15/56 | 710,000 | 797,891 | ||||||
New York City Industrial Development Agency | ||||||||
(Senior Trips) Series A 5.00% 7/1/28 (AMT) | 1,500,000 | 1,618,965 | ||||||
New York City Transitional Finance Authority Revenue | ||||||||
(Building Aid) Fiscal 2020 SeriesS-1 SubseriesS-1B 4.00% 7/15/45 | 445,000 | 527,596 | ||||||
New York Liberty Development | ||||||||
(4 World Trade Center Project) 5.00% 11/15/31 | 500,000 | 535,610 | ||||||
(Class 1 - 3 World Trade Center Project) 144A 5.00% 11/15/44 # | 1,500,000 | 1,690,095 | ||||||
(Class 2 - 3 World Trade Center Project) 144A 5.375% 11/15/40 # | 500,000 | 574,355 | ||||||
New York State Dormitory Authority | ||||||||
(State Sales Tax) Series A 4.00% 3/15/48 | 80,000 | 92,374 | ||||||
|
| |||||||
6,238,945 | ||||||||
|
| |||||||
Local General Obligation Bonds – 1.36% | ||||||||
New York City | ||||||||
Fiscal 2018 SeriesB-1 4.00% 10/1/41 | 500,000 | 583,930 | ||||||
Subordinate SeriesE-1 5.25% 3/1/35 | 500,000 | 651,490 | ||||||
|
| |||||||
1,235,420 | ||||||||
|
| |||||||
Pre-Refunded Bonds – 5.15% | ||||||||
Buffalo & Erie County Industrial Land Development | ||||||||
(Buffalo State College Foundation Housing Project) | ||||||||
Series A 6.00%10/1/31-21 § | 525,000 | 554,820 |
45
Table of Contents
Schedules of investments | ||
DelawareTax-Free New York Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Pre-Refunded Bonds(continued) | ||||||||
Dutchess County Local Development | ||||||||
(Health Quest Systems Project) Series A 5.00%7/1/44-24 § | 1,000,000 | $ | 1,177,360 | |||||
Hudson Yards Infrastructure | ||||||||
Fiscal 2012 Series A 5.75%2/15/47-21 § | 615,000 | 644,415 | ||||||
Monroe County Industrial Development Revenue | ||||||||
(Nazareth College of Rochester Project) | ||||||||
5.25%10/1/31-21 § | 500,000 | 535,715 | ||||||
5.50%10/1/41-21 § | 500,000 | 537,670 | ||||||
Onondaga Civic Development Revenue | ||||||||
(St. Joseph’s Hospital Health Center Project) | ||||||||
4.50%7/1/32-22 § | 380,000 | 412,817 | ||||||
5.00%7/1/42-22 § | 750,000 | 823,410 | ||||||
|
| |||||||
4,686,207 | ||||||||
|
| |||||||
Resource Recovery Revenue Bond – 1.78% | ||||||||
Niagara Area Development Revenue | ||||||||
(Covanta Project) Series A 144A 4.75% 11/1/42 (AMT) # | 1,500,000 | 1,619,550 | ||||||
|
| |||||||
1,619,550 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 19.27% | ||||||||
Build NYC Resource | ||||||||
(YMCA of Greater New York Project) 5.00% 8/1/40 | 450,000 | 524,502 | ||||||
Glen Cove Local Economic Assistance | ||||||||
(Garvies Point Public Improvement Project) Series A 5.00% 1/1/56 | 250,000 | 279,833 | ||||||
Guam Government Business Privilege Tax Revenue | ||||||||
Series A 5.25% 1/1/36 | 240,000 | 255,396 | ||||||
New York City Transitional Finance Authority Revenue | ||||||||
(Building Aid) | ||||||||
Fiscal 2012 Subordinate SeriesS-1A 5.25% 7/15/37 | 1,000,000 | 1,061,070 | ||||||
Fiscal 2015 Subordinate SeriesS-1 5.00% 7/15/43 | 1,000,000 | 1,188,100 | ||||||
(Future Tax Secured) | ||||||||
Fiscal 2014 Subordinate SeriesA-1 5.00% 11/1/42 | 750,000 | 851,843 | ||||||
Fiscal 2014 Subordinate SeriesB-1 5.00% 11/1/40 | 750,000 | 868,140 | ||||||
Fiscal 2015 Subordinate SeriesE-1 5.00% 2/1/41 | 1,000,000 | 1,178,970 | ||||||
Fiscal 2016 Subordinate SeriesC-1 4.00% 11/1/42 | 500,000 | 595,885 | ||||||
Fiscal 2017 Subordinate SeriesA-1 4.00% 5/1/42 | 500,000 | 570,000 | ||||||
Fiscal 2017 Subordinate SeriesE-1 5.00% 2/1/43 | 1,000,000 | 1,237,520 | ||||||
Unrefunded Fiscal 2011 Subordinate SeriesD-1 5.25% 2/1/29 | 195,000 | 202,843 | ||||||
New York Convention Center Development Revenue | ||||||||
(Hotel Unit Fee Secured) 5.00% 11/15/35 | 1,000,000 | 1,220,650 |
46
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Special Tax Revenue Bonds(continued) | ||||||||
New York State Dormitory Authority Revenue | ||||||||
(General Purpose) Series C 5.00% 3/15/34 | 500,000 | $ | 521,090 | |||||
New York State Urban Development Revenue | ||||||||
(General Purpose) Series A 4.00% 3/15/36 | 500,000 | 575,365 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.55% 7/1/40 | 425,000 | 479,260 | ||||||
SeriesA-1 4.75% 7/1/53 | 1,475,000 | 1,669,877 | ||||||
SeriesA-1 5.00% 7/1/58 | 2,745,000 | 3,148,158 | ||||||
SeriesA-2 4.536% 7/1/53 | 1,000,000 | 1,116,390 | ||||||
|
| |||||||
17,544,892 | ||||||||
|
| |||||||
State General Obligation Bonds – 1.47% | ||||||||
Commonwealth of Puerto Rico | ||||||||
Series A 8.00% 7/1/35 ‡ | 465,000 | 340,613 | ||||||
(Public Improvement) | ||||||||
Series A 5.00% 7/1/41 ‡ | 265,000 | 200,737 | ||||||
Series A 5.375% 7/1/33 ‡ | 260,000 | 213,850 | ||||||
Series B 5.75% 7/1/38 ‡ | 375,000 | 305,156 | ||||||
Series C 6.00% 7/1/39 ‡ | 340,000 | 279,225 | ||||||
|
| |||||||
1,339,581 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 11.62% | ||||||||
Buffalo & Fort Erie Public Bridge Authority 5.00% 1/1/47 | 435,000 | 522,596 | ||||||
Metropolitan Transportation Authority Revenue | ||||||||
Series D 5.00% 11/15/32 | 500,000 | 554,780 | ||||||
(Green Bond) Series B 4.00% 11/15/50 | 1,000,000 | 1,160,760 | ||||||
New York State Thruway Authority General Revenue | ||||||||
Series L 5.00% 1/1/35 | 100,000 | 127,700 | ||||||
(Junior Indebtedness Obligation) Series A 5.25% 1/1/56 | 1,000,000 | 1,202,030 | ||||||
Onondaga Civic Development Revenue | ||||||||
(Le Moyne College Project) Series B 4.00% 7/1/39 | 325,000 | 386,272 | ||||||
Port Authority of New York & New Jersey | ||||||||
(Consolidated Bonds - Two Hundred Seventeen Series) | ||||||||
4.00% 11/1/49 | 2,420,000 | 2,895,820 | ||||||
(Consolidated Bonds - Two Hundred Sixteen Series) | ||||||||
4.00% 9/1/49 | 1,000,000 | 1,193,940 | ||||||
(JFK International Air Terminal Project) | ||||||||
Series 8 6.00% 12/1/42 | 700,000 | 726,579 | ||||||
Series 8 6.50% 12/1/28 | 550,000 | 574,447 |
47
Table of Contents
Schedules of investments | ||
DelawareTax-Free New York Fund |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Transportation Revenue Bonds(continued) | ||||||||
Triborough Bridge & Tunnel Authority | ||||||||
(MTA Bridges and Tunnels) Series A 5.00% 11/15/47 | 1,000,000 | $ | 1,238,080 | |||||
|
| |||||||
10,583,004 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 5.88% | ||||||||
New York City Municipal Water Finance Authority Water & Sewer System Revenue | ||||||||
(Second General Resolution) | ||||||||
Fiscal 2017 Series DD 5.00% 6/15/47 | 1,000,000 | 1,234,840 | ||||||
Fiscal 2019 Subordinate SeriesFF-1 4.00% 6/15/49 | 1,000,000 | 1,183,880 | ||||||
Fiscal 2020 Series AA 4.00% 6/15/40 | 1,000,000 | 1,213,200 | ||||||
New York State Environmental Facilities Clean Water and Drinking Water Revenue | ||||||||
(New York City Municipal Water Finance Authority Projects - Second Resolution) | ||||||||
Fiscal 2011 Series B 5.00% 6/15/30 | 500,000 | 526,690 | ||||||
Series B 4.00% 6/15/49 | 1,000,000 | 1,191,400 | ||||||
|
| |||||||
5,350,010 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $84,018,908) | 90,868,017 | |||||||
|
| |||||||
| ||||||||
Short-Term Investment – 0.11% | ||||||||
| ||||||||
Variable Rate Demand Note – 0.11%¤ | ||||||||
New York City Municipal Water Finance Authority Water & Sewer System Revenue Fiscal 2008 SeriesBB-5 | ||||||||
1.18% 6/15/33 (SPA - Bank of America N.A.) | 100,000 | 100,000 | ||||||
|
| |||||||
Total Short-Term Investment(cost $100,000) | 100,000 | |||||||
|
| |||||||
Total Value of Securities – 99.91% | $ | 90,968,017 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $7,233,529, which represents 7.94% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Feb. 29, 2020. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
48
Table of Contents
‡ | Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
FHA – Federal Housing Administration
N.A. – National Association
SPA –Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
49
Table of Contents
Schedules of investments | ||
DelawareTax-Free Pennsylvania Fund | February 29, 2020 (Unaudited) |
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds – 99.42% | ||||||||
| ||||||||
Corporate Revenue Bonds – 7.92% | ||||||||
Allegheny County Industrial Development Authority | ||||||||
Revenue | ||||||||
(United States Steel Corporation Project) | ||||||||
4.875% 11/1/24 | 1,250,000 | $ | 1,385,625 | |||||
5.125% 5/1/30 | 3,250,000 | 3,917,583 | ||||||
Delaware County Industrial Development Authority | ||||||||
(Covanta Project) Series A 5.00% 7/1/43 | 2,155,000 | 2,181,312 | ||||||
Pennsylvania Commonwealth Financing Authority Revenue | ||||||||
(Tobacco Master Settlement Payment Revenue) 4.00% 6/1/39 (AGM) | 5,045,000 | 5,799,631 | ||||||
Pennsylvania Economic Development Financing Authority | ||||||||
(National Gypsum) 5.50% 11/1/44 (AMT) | 4,000,000 | 4,326,800 | ||||||
Pennsylvania Economic Development Financing Authority | ||||||||
Solid Waste Disposal Revenue | ||||||||
(CarbonLite P, LLC Project) 144A 5.25% 6/1/26 (AMT)# | 1,750,000 | 1,835,943 | ||||||
144A 5.75% 6/1/36 (AMT)# | 2,375,000 | 2,594,307 | ||||||
(Proctor & Gamble Paper Project) 5.375% 3/1/31 (AMT) | 11,000,000 | 14,857,700 | ||||||
|
| |||||||
36,898,901 | ||||||||
|
| |||||||
Education Revenue Bonds – 12.81% | ||||||||
Allegheny County Higher Education Building Authority | ||||||||
Revenue | ||||||||
(Carnegie Mellon University) Series A 5.00% 3/1/24 | 1,000,000 | 1,082,760 | ||||||
(Chatham University) Series A 5.00% 9/1/30 | 1,500,000 | 1,604,835 | ||||||
(Robert Morris University) 5.00% 10/15/47 | 1,500,000 | 1,707,495 | ||||||
Series A 5.50% 10/15/30 | 1,275,000 | 1,304,835 | ||||||
Series A 5.75% 10/15/40 | 2,200,000 | 2,250,490 | ||||||
Bucks County Industrial Development Authority Revenue | ||||||||
(George School Project) 5.00% 9/15/36 | 4,455,000 | 4,729,562 | ||||||
(School Lane Charter School Project) Series A 5.125% 3/15/46 | 2,500,000 | 2,897,300 | ||||||
Chester County Industrial Development Authority Revenue | ||||||||
(Avon Grove Charter School Project) | ||||||||
Series A 5.00% 12/15/47 | 1,160,000 | 1,344,347 | ||||||
Series A 5.00% 12/15/51 | 770,000 | 889,897 | ||||||
(Renaissance Academy Charter School Project) | ||||||||
5.00% 10/1/34 | 1,000,000 | 1,121,050 | ||||||
5.00% 10/1/39 | 1,250,000 | 1,391,750 | ||||||
5.00% 10/1/44 | 1,000,000 | 1,107,080 |
50
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
Chester County Industrial Development Authority Student | ||||||||
Housing Revenue | ||||||||
(University Student Housing Project at West Chester University) | ||||||||
Series A 5.00% 8/1/30 | 1,100,000 | $ | 1,227,776 | |||||
Series A 5.00% 8/1/45 | 1,250,000 | 1,373,700 | ||||||
Delaware County Authority Revenue | ||||||||
(Cabrini University) 5.00% 7/1/47 | 2,000,000 | 2,307,660 | ||||||
East Hempfield Township Industrial Development Authority | ||||||||
(Student Services - Student Housing Project at Millersville University) | ||||||||
5.00% 7/1/39 | 875,000 | 987,026 | ||||||
5.00% 7/1/45 | 2,500,000 | 2,740,775 | ||||||
5.00% 7/1/46 | 1,425,000 | 1,595,743 | ||||||
5.00% 7/1/47 | 1,000,000 | 1,140,880 | ||||||
Montgomery County Higher Education & Health Authority | ||||||||
Revenue | ||||||||
(Arcadia University) 5.75% 4/1/40 | 2,000,000 | 2,288,500 | ||||||
Northeastern Pennsylvania Hospital & Education Authority | ||||||||
Revenue | ||||||||
(King’s College Project) 5.00% 5/1/44 | 1,000,000 | 1,224,680 | ||||||
Pennsylvania Higher Educational Facilities Authority College & University Revenue | ||||||||
(Drexel University) 5.00% 5/1/41 | 1,000,000 | 1,223,110 | ||||||
(University Properties Student Housing - East Stroudsburg University of Pennsylvania) 5.00% 7/1/42 | 500,000 | 504,775 | ||||||
Pennsylvania State University | ||||||||
Series A 4.00% 9/1/50 | 1,500,000 | 1,791,615 | ||||||
Philadelphia Authority for Industrial Development Revenue | ||||||||
(First Philadelphia Preparatory Charter School Project) | ||||||||
Series A 7.25% 6/15/43 | 2,500,000 | 2,914,100 | ||||||
(Green Woods Charter School Project) | ||||||||
Series A 5.50% 6/15/22 | 565,000 | 586,018 | ||||||
Series A 5.75% 6/15/42 | 2,500,000 | 2,636,900 | ||||||
(International Apartments of Temple University) | ||||||||
Series A 5.375% 6/15/30 | 1,500,000 | 1,515,690 | ||||||
Series A 5.625% 6/15/42 | 3,000,000 | 3,029,940 | ||||||
(Philadelphia Performing Arts Charter School Project) 144A 6.75% 6/15/43 # | 2,550,000 | 2,576,341 | ||||||
(Tacony Academy Charter School Project) | ||||||||
SeriesA-1 6.75% 6/15/33 | 1,020,000 | 1,137,677 | ||||||
SeriesA-1 7.00% 6/15/43 | 1,535,000 | 1,707,734 | ||||||
(Temple University Second Series) 5.00% 4/1/36 | 1,145,000 | 1,339,398 |
51
Table of Contents
Schedules of investments
DelawareTax-Free Pennsylvania Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Education Revenue Bonds(continued) | ||||||||
State Public School Building Authority | ||||||||
(Montgomery County Community College) 5.00% 5/1/28 | 2,000,000 | $ | 2,389,820 | |||||
|
| |||||||
59,671,259 | ||||||||
|
| |||||||
Electric Revenue Bonds – 0.94% | ||||||||
Puerto Rico Electric Power Authority | ||||||||
Series A 5.05% 7/1/42 ‡ | 400,000 | 319,500 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 225,000 | 180,281 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 1,550,000 | 1,241,937 | ||||||
Series WW 5.00% 7/1/28 ‡ | 1,385,000 | 1,106,269 | ||||||
Series XX 4.75% 7/1/26 ‡ | 185,000 | 146,844 | ||||||
Series XX 5.25% 7/1/40 ‡ | 610,000 | 488,763 | ||||||
Series XX 5.75% 7/1/36 ‡ | 655,000 | 528,094 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 145,000 | 115,094 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 315,000 | 252,394 | ||||||
|
| |||||||
4,379,176 | ||||||||
|
| |||||||
Healthcare Revenue Bonds – 40.31% | ||||||||
Allegheny County Hospital Development Authority | ||||||||
Revenue | ||||||||
(Allegheny Health Network Obligated Group Issue) | ||||||||
Series A 4.00% 4/1/44 | 1,350,000 | 1,530,239 | ||||||
(University of Pittsburgh Medical Center) | ||||||||
Series A 4.00% 7/15/36 | 1,750,000 | 2,086,000 | ||||||
Series A 4.00% 7/15/37 | 1,500,000 | 1,782,750 | ||||||
Berks County Industrial Development Authority Revenue | ||||||||
(The Highlands at Wyomissing) | ||||||||
5.00% 5/15/38 | 415,000 | 479,196 | ||||||
5.00% 5/15/43 | 500,000 | 571,945 | ||||||
5.00% 5/15/48 | 1,000,000 | 1,137,360 | ||||||
Series A 5.00% 5/15/37 | 1,365,000 | 1,617,634 | ||||||
Series A 5.00% 5/15/42 | 500,000 | 586,005 | ||||||
Series A 5.00% 5/15/47 | 600,000 | 697,302 | ||||||
Series C 5.00% 5/15/42 | 1,000,000 | 1,131,900 | ||||||
Series C 5.00% 5/15/47 | 1,000,000 | 1,127,280 | ||||||
(Tower Health Project) | ||||||||
4.00% 11/1/47 | 2,500,000 | 2,784,200 | ||||||
5.00% 11/1/50 | 5,105,000 | 6,075,409 | ||||||
Bucks County Industrial Development Authority Revenue | ||||||||
(Saint Luke’s University Health Network Project) | ||||||||
4.00% 8/15/44 | 2,400,000 | 2,714,424 | ||||||
4.00% 8/15/50 | 1,400,000 | 1,571,640 |
52
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Butler County Hospital Authority Revenue | ||||||||
(Butler Health System Project) Series A 5.00% 7/1/39 | 1,625,000 | $ | 1,876,095 | |||||
Centre County Hospital Authority Revenue | ||||||||
(Mount Nittany Medical Center Project) Series A 4.00% 11/15/47 | 1,400,000 | 1,561,910 | ||||||
Chester County Health & Education Facilities Authority | ||||||||
Revenue | ||||||||
(Main Line Health System) Series A 4.00% 9/1/50 | 3,500,000 | 4,156,250 | ||||||
(Simpson Senior Services Project) | ||||||||
Series A 5.00% 12/1/35 | 775,000 | 871,425 | ||||||
Series A 5.25% 12/1/45 | 1,360,000 | 1,526,410 | ||||||
Cumberland County Municipal Authority Revenue | ||||||||
(Diakon Lutheran Social Ministries Project) 5.00% 1/1/38 | 2,000,000 | 2,259,420 | ||||||
(Penn State Health) 4.00% 11/1/49 | 10,000,000 | 11,431,400 | ||||||
DuBois Hospital Authority | ||||||||
(Penn Highlands Healthcare) 4.00% 7/15/48 | 2,000,000 | 2,243,520 | ||||||
Franklin County Industrial Development Authority Revenue | ||||||||
(Menno-Haven Project) 5.00% 12/1/53 | 1,900,000 | 2,099,006 | ||||||
Geisinger Authority Health System Revenue | ||||||||
(Geisinger Health System) | ||||||||
SeriesA-1 5.00% 2/15/45 | 5,000,000 | 6,030,900 | ||||||
SeriesA-1 5.125% 6/1/41 | 4,000,000 | 4,185,160 | ||||||
General Authority of Southcentral Pennsylvania Revenue | ||||||||
(WellSpan Health Obligated Group) | ||||||||
Series A 5.00% 6/1/38 | 1,000,000 | 1,285,980 | ||||||
Series A 5.00% 6/1/39 | 5,000,000 | 6,415,300 | ||||||
Indiana County Hospital Authority Revenue | ||||||||
(Indiana Regional Medical Center) Series A 6.00% 6/1/39 | 1,625,000 | 1,791,449 | ||||||
Lancaster County Hospital Authority Revenue | ||||||||
(Brethren Village Project) | ||||||||
5.25% 7/1/35 | 250,000 | 275,813 | ||||||
5.25% 7/1/41 | 1,000,000 | 1,144,860 | ||||||
5.50% 7/1/45 | 1,000,000 | 1,110,240 | ||||||
(Landis Homes Retirement Community Project) Series A 5.00% 7/1/45 | 2,000,000 | 2,202,760 | ||||||
(Masonic Villages Project) | ||||||||
5.00% 11/1/35 | 1,000,000 | 1,206,130 | ||||||
5.00% 11/1/36 | 510,000 | 613,933 | ||||||
5.00% 11/1/37 | 250,000 | 299,725 | ||||||
(St. Anne’s Retirement Community Project) 5.00% 4/1/27 | 1,425,000 | 1,511,255 |
53
Table of Contents
Schedules of investments
DelawareTax-Free Pennsylvania Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Lancaster County Hospital Authority Revenue | ||||||||
(St. Anne’s Retirement Community Project) 5.00% 4/1/33 | 1,830,000 | $ | 1,926,606 | |||||
Lehigh County General Purpose Authority Revenue | ||||||||
(Bible Fellowship Church Homes Project) | ||||||||
5.125% 7/1/32 | 1,000,000 | 1,029,420 | ||||||
5.25% 7/1/42 | 1,500,000 | 1,544,895 | ||||||
Lehigh County General Purpose Hospital Authority | ||||||||
Revenue | ||||||||
(Lehigh Valley Health Network) Series A 4.00% 7/1/49 | 5,000,000 | 5,769,950 | ||||||
Monroe County Hospital Authority Revenue | ||||||||
(Pocono Medical Center) | ||||||||
5.00% 7/1/36 | 1,710,000 | 2,047,657 | ||||||
5.00% 7/1/41 | 1,000,000 | 1,187,450 | ||||||
Monroeville Finance Authority | ||||||||
(University of Pittsburgh Medical Center) 5.00% 2/15/25 | 1,000,000 | 1,197,390 | ||||||
Montgomery County Higher Education & Health Authority | ||||||||
Revenue | ||||||||
(Thomas Jefferson University) Series A 4.00% 9/1/49 | 2,500,000 | 2,840,350 | ||||||
Montgomery County Industrial Development Authority Retirement Community Revenue | ||||||||
(ACTS Retirement Life Communities Obligated Group) | ||||||||
5.00% 11/15/27 | 1,250,000 | 1,350,863 | ||||||
5.00% 11/15/28 | 1,600,000 | 1,726,720 | ||||||
5.00% 11/15/29 | 680,000 | 733,740 | ||||||
Montgomery County Industrial Development Authority | ||||||||
Revenue | ||||||||
(Albert Einstein Healthcare Network) Series A 5.25% 1/15/45 | 2,500,000 | 2,865,500 | ||||||
(Waverly Heights Project) | ||||||||
5.00% 12/1/44 | 500,000 | 597,945 | ||||||
5.00% 12/1/49 | 1,250,000 | 1,489,887 | ||||||
(Whitemarsh Continuing Care Retirement Community Project) | ||||||||
5.375% 1/1/50 | 4,000,000 | 4,268,000 | ||||||
Series A 5.375% 1/1/51 | 1,500,000 | 1,624,770 | ||||||
Moon Industrial Development Authority Revenue | ||||||||
(Baptist Homes Society) 6.125% 7/1/50 | 4,000,000 | 4,420,120 | ||||||
Northampton County Industrial Development Authority | ||||||||
(Morningstar Senior Living Project) 5.00% 7/1/32 | 1,275,000 | 1,350,174 |
54
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Healthcare Revenue Bonds(continued) | ||||||||
Pennsylvania Economic Development Financing Authority First Mortgage Revenue | ||||||||
(Tapestry Moon Senior Housing Project) | ||||||||
Series A 144A 6.50% 12/1/38 # | 715,000 | $ | 740,933 | |||||
Series A 144A 6.75% 12/1/53 # | 5,400,000 | 5,612,274 | ||||||
Pennsylvania Economic Development Financing Authority | ||||||||
Revenue | ||||||||
(University of Pittsburgh Medical Center) Series A 5.00% 7/1/43 | 1,265,000 | 1,397,268 | ||||||
Pennsylvania Higher Educational Facilities Authority College & University Revenue | ||||||||
(Thomas Jefferson University) | ||||||||
Series A 5.00% 9/1/45 | 7,000,000 | 8,190,840 | ||||||
Series A 5.25% 9/1/50 | 2,500,000 | 2,944,300 | ||||||
Pennsylvania Higher Educational Facilities Authority | ||||||||
Revenue | ||||||||
(University of Pennsylvania Health System) | ||||||||
4.00% 8/15/49 | 11,990,000 | 14,078,538 | ||||||
5.00% 8/15/49 | 10,615,000 | 13,458,971 | ||||||
Series A 4.00% 8/15/42 | 4,000,000 | 4,613,400 | ||||||
Philadelphia Authority for Industrial Development Revenue | ||||||||
(Children’s Hospital of Philadelphia Project) 5.00% 7/1/34 | 5,000,000 | 6,253,650 | ||||||
(Thomas Jefferson University) Series A 5.00% 9/1/47 | 2,500,000 | 2,989,775 | ||||||
(Wesley Enhanced Living Obligated Group) Series A 5.00% 7/1/49 | 2,500,000 | 2,854,875 | ||||||
Pocono Mountains Industrial Park Authority Revenue | ||||||||
(St. Luke’s Hospital - Monroe Project) Series A 5.00% 8/15/40 | 4,000,000 | 4,640,960 | ||||||
|
| |||||||
187,739,446 | ||||||||
|
| |||||||
Housing Revenue Bond – 0.44% | ||||||||
Philadelphia Authority for Industrial Development Revenue | ||||||||
(The PresbyHomes Germantown Project) Series A 5.625% 7/1/35 (HUD) | 2,030,000 | 2,033,370 | ||||||
|
| |||||||
2,033,370 | ||||||||
|
| |||||||
Lease Revenue Bonds – 0.98% | ||||||||
Philadelphia Municipal Authority Revenue | ||||||||
(Juvenile Justice Services Center) | ||||||||
5.00% 4/1/37 | 1,250,000 | 1,524,963 | ||||||
5.00% 4/1/38 | 1,000,000 | 1,216,460 | ||||||
5.00% 4/1/39 | 1,500,000 | 1,821,420 | ||||||
|
| |||||||
4,562,843 | ||||||||
|
|
55
Table of Contents
Schedules of investments
DelawareTax-Free Pennsylvania Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Local General Obligation Bonds – 8.39% | ||||||||
Allegheny County | ||||||||
SeriesC-69 5.00% 12/1/28 | 1,000,000 | $ | 1,109,740 | |||||
SeriesC-70 5.00% 12/1/33 | 2,205,000 | 2,447,307 | ||||||
SeriesC-77 5.00% 11/1/43 | 4,535,000 | 5,728,793 | ||||||
Chester County | ||||||||
4.00% 7/15/32 | 2,000,000 | 2,450,180 | ||||||
5.00% 7/15/30 | 3,000,000 | 3,988,290 | ||||||
City of Philadelphia | ||||||||
5.00% 8/1/41 | 1,260,000 | 1,550,354 | ||||||
Series A 5.00% 8/1/37 | 1,750,000 | 2,171,750 | ||||||
Series A 5.25% 7/15/29 | 2,500,000 | 2,893,725 | ||||||
Series B 5.00% 2/1/39 | 1,000,000 | 1,294,850 | ||||||
City of Pittsburgh | ||||||||
4.00% 9/1/35 | 750,000 | 867,570 | ||||||
4.00% 9/1/36 | 500,000 | 577,305 | ||||||
Series B 5.00% 9/1/26 | 3,000,000 | 3,298,080 | ||||||
North Allegheny School District | ||||||||
4.00% 5/1/37 | 1,065,000 | 1,266,658 | ||||||
Philadelphia School District | ||||||||
Series F 5.00% 9/1/36 | 2,000,000 | 2,413,700 | ||||||
Series F 5.00% 9/1/37 | 1,500,000 | 1,806,240 | ||||||
Series F 5.00% 9/1/38 | 2,000,000 | 2,403,020 | ||||||
Tredyffrin Easttown School District | ||||||||
5.00% 2/15/38 | 2,250,000 | 2,804,513 | ||||||
|
| |||||||
39,072,075 | ||||||||
|
| |||||||
Pre-Refunded/Escrowed to Maturity Bonds – 5.34% | ||||||||
Allegheny County Higher Education Building Authority Revenue | ||||||||
(Carlow University Project) | ||||||||
6.75%11/1/31-21§ | 750,000 | 822,953 | ||||||
7.00%11/1/40-21§ | 1,000,000 | 1,100,680 | ||||||
Central Bradford Progress Authority (Guthrie Health Issue) 5.375%12/1/41-21§ |
| 1,000,000 |
|
| 1,077,810 |
| ||
Delaware County Regional Water Quality Control Authority | ||||||||
5.00%5/1/32-23§ | 2,000,000 | 2,262,340 | ||||||
Monroe County Hospital Authority | ||||||||
(Pocono Medical Center) | ||||||||
Series A 5.00%1/1/32-22§ | 1,150,000 | 1,234,617 | ||||||
Series A 5.00%1/1/41-22§ | 1,500,000 | 1,610,370 |
56
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Pre-Refunded/Escrowed to Maturity Bonds(continued) | ||||||||
Pennsylvania Higher Educational Facilities Authority College & University Revenue | ||||||||
(AICUP Financing Program - St. Francis University Project) Series JJ2 6.25%11/1/41-21§ | 2,355,000 | $ | 2,567,162 | |||||
(Indiana University - Student Housing Project) | ||||||||
Series A 5.00%7/1/27-22§ | 1,740,000 | 1,909,041 | ||||||
Series A 5.00%7/1/41-22§ | 1,500,000 | 1,645,725 | ||||||
(Philadelphia University) 5.00%6/1/32-23§ | 2,000,000 | 2,269,160 | ||||||
(Shippensburg University - Student Housing Project) 6.25%10/1/43-21§ | 2,000,000 | 2,169,540 | ||||||
(University of the Arts) 5.20% 3/15/25 (AGC) | 4,490,000 | 5,049,948 | ||||||
Philadelphia Authority for Industrial Development Revenue | ||||||||
(New Foundations Charter School Project) 6.625%12/15/41-22§ | 1,000,000 | 1,155,200 | ||||||
|
| |||||||
24,874,546 | ||||||||
|
| |||||||
Special Tax Revenue Bonds – 8.93% | ||||||||
Allentown Neighborhood Improvement Zone Development Authority Revenue | ||||||||
Series A 5.00% 5/1/42 | 2,500,000 | 2,668,525 | ||||||
(City Center Project) 144A 5.375% 5/1/42 # | 1,800,000 | 2,135,808 | ||||||
(City Center Refunding Project) 144A 5.00% 5/1/42 # | 3,000,000 | 3,512,460 | ||||||
Chester County Industrial Development Authority Special Obligation Revenue | ||||||||
(Woodlands at Greystone Project) | ||||||||
144A 5.00% 3/1/38 # | 560,000 | 612,416 | ||||||
144A 5.125% 3/1/48 # | 1,000,000 | 1,092,770 | ||||||
Northampton County Industrial Development Authority | ||||||||
(Route 33 Project) 7.00% 7/1/32 | 1,900,000 | 2,151,123 | ||||||
Port Authority of Allegheny County | ||||||||
5.75% 3/1/29 | 5,200,000 | 5,448,612 | ||||||
Puerto Rico Sales Tax Financing Revenue | ||||||||
(Restructured) | ||||||||
SeriesA-1 4.75% 7/1/53 | 8,475,000 | 9,594,717 | ||||||
SeriesA-1 5.00% 7/1/58 | 8,335,000 | 9,559,161 | ||||||
SeriesA-2 4.329% 7/1/40 | 2,800,000 | 3,111,920 | ||||||
Washington County Redevelopment Authority Revenue | ||||||||
(Victory Centre Tax Increment Financing Project) 5.00% 7/1/35 | 1,500,000 | 1,672,395 | ||||||
|
| |||||||
41,559,907 | ||||||||
|
| |||||||
State General Obligation Bonds – 2.32% | ||||||||
Commonwealth of Pennsylvania | ||||||||
5.00% 9/15/26 | 3,340,000 | 4,195,474 |
57
Table of Contents
Schedules of investments
DelawareTax-Free Pennsylvania Fund
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds (continued) | ||||||||
| ||||||||
State General Obligation Bonds(continued) | ||||||||
Commonwealth of Puerto Rico | ||||||||
Series A 5.00% 7/1/41 ‡ | 1,340,000 | $ | 1,015,050 | |||||
Series A 5.375% 7/1/33 ‡ | 1,480,000 | 1,217,300 | ||||||
Series A 8.00% 7/1/35 ‡ | 1,640,000 | 1,201,300 | ||||||
Series B 5.75% 7/1/38 ‡ | 2,000,000 | 1,627,500 | ||||||
Series C 6.00% 7/1/39 ‡ | 1,880,000 | 1,543,950 | ||||||
|
| |||||||
10,800,574 | ||||||||
|
| |||||||
Transportation Revenue Bonds – 7.93% | ||||||||
Delaware River Joint Toll Bridge Commission | ||||||||
(Pennsylvania - New Jersey) 5.00% 7/1/47 | 5,000,000 | 6,150,000 | ||||||
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue | ||||||||
(Amtrak Project) | ||||||||
Series A 5.00% 11/1/32 (AMT) | 3,500,000 | 3,823,820 | ||||||
Series A 5.00% 11/1/41 (AMT) | 5,000,000 | 5,412,650 | ||||||
Pennsylvania Turnpike Commission Revenue | ||||||||
Series A 5.00% 12/1/23 | 2,450,000 | 2,819,803 | ||||||
Series A 5.00% 12/1/49 | 2,000,000 | 2,553,560 | ||||||
Series C 5.00% 12/1/44 | 5,000,000 | 5,812,700 | ||||||
Philadelphia Airport Revenue | ||||||||
Series A 5.00% 7/1/47 | 3,750,000 | 4,580,663 | ||||||
Series B 5.00% 7/1/47 (AMT) | 3,000,000 | 3,611,910 | ||||||
Susquehanna Area Regional Airport Authority Revenue | ||||||||
5.00% 1/1/35 (AMT) | 800,000 | 958,280 | ||||||
5.00% 1/1/38 (AMT) | 1,000,000 | 1,189,540 | ||||||
|
| |||||||
36,912,926 | ||||||||
|
| |||||||
Water & Sewer Revenue Bonds – 3.11% | ||||||||
Allegheny County Sanitary Authority | ||||||||
5.00% 12/1/28 (BAM) | 2,345,000 | 2,868,005 | ||||||
Bucks County Water & Sewer Authority | ||||||||
Series A 5.00% 12/1/37 (AGM) | 780,000 | 919,370 | ||||||
Series A 5.00% 12/1/40 (AGM) | 1,000,000 | 1,176,360 | ||||||
Philadelphia Water & Wastewater Revenue | ||||||||
Series A 5.00% 7/1/45 | 2,500,000 | 2,853,600 | ||||||
Series A 5.25% 10/1/52 | 1,000,000 | 1,237,740 | ||||||
Pittsburgh Water & Sewer Authority | ||||||||
(Subordinate Revenue Refunding Bonds) | ||||||||
Series B 4.00% 9/1/34 (AGM) | 1,000,000 | 1,194,780 | ||||||
Series B 4.00% 9/1/35 (AGM) | 300,000 | 357,642 | ||||||
Series B 5.00% 9/1/32 (AGM) | 1,500,000 | 2,096,640 |
58
Table of Contents
Principal amount° | Value (US $) | |||||||
| ||||||||
Municipal Bonds(continued) | ||||||||
| ||||||||
Water & Sewer Revenue Bonds(continued) | ||||||||
Pittsburgh Water & Sewer Authority | ||||||||
(Subordinate Revenue Refunding Bonds) | ||||||||
Series B 5.00% 9/1/33 (AGM) | 1,250,000 | $ | 1,777,525 | |||||
|
| |||||||
14,481,662 | ||||||||
|
| |||||||
Total Municipal Bonds(cost $423,991,032) | 462,986,685 | |||||||
|
| |||||||
Total Value of Securities – 99.42% | ||||||||
(cost $423,991,032) | $ | 462,986,685 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Feb. 29, 2020, the aggregate value of Rule 144A securities was $20,713,252, which represents 4.45% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. Forpre-refunded bonds, the stated maturity is followed by the year in which the bond will bepre-refunded. See Note 6 in “Notes to financial statements.” |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
‡ | Non-income producing security. Security is currently in default. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
HUD – Housing and Urban Development Section 8
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
59
Table of Contents
Statements of assets and liabilities | ||
February 29, 2020 (Unaudited) |
Delaware Tax-Free Arizona Fund | Delaware Tax-Free California Fund | Delaware Tax-Free Colorado Fund | ||||||||||
Assets: | ||||||||||||
Investments, at value1 | $82,740,113 | $102,023,451 | $232,581,466 | |||||||||
Cash | 632,409 | 525,623 | — | |||||||||
Interest receivable | 664,426 | 1,090,342 | 2,317,230 | |||||||||
Receivable for fund shares sold | 114,075 | 287,014 | 195,823 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 84,151,023 | 103,926,430 | 235,094,519 | |||||||||
|
|
|
|
|
| |||||||
Liabilities: | ||||||||||||
Cash due to custodian | — | — | 179,357 | |||||||||
Payable for securities purchased | 708,348 | — | — | |||||||||
Distribution payable | 35,706 | 52,035 | 105,909 | |||||||||
Payable for fund shares redeemed | — | 520,225 | — | |||||||||
Audit and tax fees payable | 22,950 | 22,950 | 22,950 | |||||||||
Investment management fees payable to affiliates | 21,852 | 29,199 | 80,556 | |||||||||
Distribution fees payable to affiliates | 14,581 | 17,073 | 41,606 | |||||||||
Accounting and administration expenses payable tonon-affiliates | 11,997 | 12,628 | 16,478 | |||||||||
Dividend disbursing and transfer agent fees and expenses payable tonon-affiliates | 9,917 | 13,644 | 30,682 | |||||||||
Reports and statements to shareholders expenses payable tonon-affiliates | 5,383 | 4,414 | 9,807 | |||||||||
Other accrued expenses | 1,427 | 3,501 | 8,097 | |||||||||
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 557 | 701 | 1,587 | |||||||||
Accounting and administration expenses payable to affiliates | 531 | 586 | 926 | |||||||||
Trustees’ fees and expenses payable | 253 | 320 | 720 | |||||||||
Legal fees payable to affiliates | 117 | 148 | 334 | |||||||||
Reports and statements to shareholders expenses payable to affiliates | 49 | 62 | 140 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 833,668 | 677,486 | 499,149 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $83,317,355 | $103,248,944 | $234,595,370 | |||||||||
|
|
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||||
Paid-in capital | $76,701,950 | $ 93,622,068 | $218,265,575 | |||||||||
Total distributable earnings (loss) | 6,615,405 | 9,626,876 | 16,329,795 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $83,317,355 | $103,248,944 | $234,595,370 | |||||||||
|
|
|
|
|
|
60
Table of Contents
Delaware Tax-Free Arizona Fund | Delaware Tax-Free California Fund | Delaware Tax-Free Colorado Fund | ||||||||||
Net Asset Value | ||||||||||||
Class A: | ||||||||||||
Net assets | $63,587,731 | $43,416,195 | $172,876,680 | |||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 5,336,301 | 3,428,949 | 14,798,470 | |||||||||
Net asset value per share | $ 11.92 | $ 12.66 | $ 11.68 | |||||||||
Sales charge | 4.50 | % | 4.50 | % | 4.50 | % | ||||||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ 12.48 | $ 13.26 | $ 12.23 | |||||||||
Class C: | ||||||||||||
Net assets | $ 2,879,436 | $10,891,028 | $ 9,947,005 | |||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 241,025 | 858,670 | 849,267 | |||||||||
Net asset value per share | $ 11.95 | $ 12.68 | $ 11.71 | |||||||||
Institutional Class: | ||||||||||||
Net assets | $16,850,188 | $48,941,721 | $ 51,771,685 | |||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 1,413,952 | 3,865,372 | 4,431,961 | |||||||||
Net asset value per share | $ 11.92 | $ 12.66 | $ 11.68 | |||||||||
| ||||||||||||
1Investments, at cost | $ 76,478,021 | $ 92,697,409 | $ 214,485,004 |
See accompanying notes, which are an integral part of the financial statements.
61
Table of Contents
Statements of assets and liabilities
Delaware Tax-Free Idaho Fund | Delaware Tax-Free New York Fund | Delaware Tax-Free Pennsylvania Fund | ||||||||||
Assets: | ||||||||||||
Investments, at value1 | $116,407,098 | $90,968,017 | $462,986,685 | |||||||||
Cash | — | 28,866 | 735,105 | |||||||||
Interest receivable | 1,343,426 | 831,832 | 5,123,083 | |||||||||
Receivable for fund shares sold | 35,139 | 215,543 | 486,791 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 117,785,663 | 92,044,258 | 469,331,664 | |||||||||
|
|
|
|
|
| |||||||
Liabilities: | ||||||||||||
Cash due to custodian | 65,617 | — | — | |||||||||
Payable for securities purchased | 6,353,282 | 740,635 | 1,741,110 | |||||||||
Payable for fund shares redeemed | 71,500 | 108,858 | 1,248,617 | |||||||||
Distribution payable | 49,168 | 40,566 | 216,959 | |||||||||
Investment management fees payable to affiliates | 35,385 | 21,373 | 168,759 | |||||||||
Audit and tax fees payable | 22,950 | 22,950 | 22,950 | |||||||||
Distribution fees payable to affiliates | 20,687 | 16,702 | 92,276 | |||||||||
Dividend disbursing and transfer agent fees and expenses payable tonon-affiliates | 14,727 | 14,269 | 68,322 | |||||||||
Accounting and administration expenses payable tonon-affiliates | 12,858 | 12,253 | 23,304 | |||||||||
Reports and statements to shareholders expenses payable tonon-affiliates | 5,195 | 4,593 | 16,761 | |||||||||
Other accrued expenses | 2,897 | 8,715 | 17,609 | |||||||||
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 755 | 616 | 3,148 | |||||||||
Accounting and administration expenses payable to affiliates | 607 | 554 | 1,527 | |||||||||
Trustees’ fees and expenses payable | 343 | 279 | 1,427 | |||||||||
Legal fees payable to affiliates | 159 | 130 | 662 | |||||||||
Reports and statements to shareholders expenses payable to affiliates | 67 | 54 | 277 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 6,656,197 | 992,547 | 3,623,708 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $111,129,466 | $91,051,711 | $465,707,956 | |||||||||
|
|
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||||
Paid-in capital | $107,722,632 | $83,744,988 | $424,467,688 | |||||||||
Total distributable earnings (loss) | 3,406,834 | 7,306,723 | 41,240,268 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $111,129,466 | $91,051,711 | $465,707,956 | |||||||||
|
|
|
|
|
|
62
Table of Contents
Delaware Tax-Free Idaho Fund | Delaware Tax-Free New York Fund | Delaware Tax-Free Pennsylvania Fund | ||||||||||
Net Asset Value | ||||||||||||
Class A: | ||||||||||||
Net assets | $58,489,437 | $36,956,890 | $388,860,721 | |||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 4,941,039 | 3,060,255 | 46,638,925 | |||||||||
Net asset value per share | $ 11.84 | $ 12.08 | $ 8.34 | |||||||||
Sales charge | 4.50 | % | 4.50 | % | 4.50 | % | ||||||
Offering price per share, equal to net asset value per share / (1 – sales charge) | $ 12.40 | $ 12.65 | $ 8.73 | |||||||||
Class C: | ||||||||||||
Net assets | $11,713,947 | $12,184,507 | $ 23,191,512 | |||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 990,317 | 1,011,522 | 2,780,838 | |||||||||
Net asset value per share | $ 11.83 | $ 12.05 | $ 8.34 | |||||||||
Institutional Class: | ||||||||||||
Net assets | $40,926,082 | $41,910,314 | $ 53,655,723 | |||||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 3,456,635 | 3,471,977 | 6,439,753 | |||||||||
Net asset value per share | $ 11.84 | $ 12.07 | $ 8.33 | |||||||||
| ||||||||||||
1Investments, at cost | $ 108,923,889 | $ 84,118,908 | $ 423,991,032 |
See accompanying notes, which are an integral part of the financial statements.
63
Table of Contents
Statements of operations | ||
Six months ended February 29, 2020 (Unaudited) |
Delaware Tax-Free Arizona Fund | Delaware Tax-Free California Fund | Delaware Tax-Free Colorado Fund | ||||||||||
Investment Income: | ||||||||||||
Interest | $1,458,612 | $1,933,209 | $4,166,972 | |||||||||
Dividends | — | — | 5,636 | |||||||||
|
|
|
|
|
| |||||||
1,458,612 | 1,933,209 | 4,172,608 | ||||||||||
|
|
|
|
|
| |||||||
Expenses: | ||||||||||||
Management fees | 197,464 | 272,942 | 610,633 | |||||||||
Distribution expenses — Class A | 76,533 | 52,805 | 207,806 | |||||||||
Distribution expenses — Class C | 14,234 | 53,694 | 49,347 | |||||||||
Accounting and administration expenses | 25,769 | 27,390 | 37,214 | |||||||||
Audit and tax fees | 22,950 | 22,950 | 22,950 | |||||||||
Dividend disbursing and transfer agent fees and expenses | 22,314 | 26,106 | 65,123 | |||||||||
Registration fees | 9,725 | 6,902 | 7,475 | |||||||||
Reports and statements to shareholders expenses | 7,096 | 7,049 | 12,066 | |||||||||
Legal fees | 5,719 | 6,626 | 12,345 | |||||||||
Trustees’ fees and expenses | 1,902 | 2,391 | 5,330 | |||||||||
Custodian fees | 1,261 | 1,578 | 3,236 | |||||||||
Other | 8,925 | 9,903 | 14,253 | |||||||||
|
|
|
|
|
| |||||||
393,892 | 490,336 | 1,047,778 | ||||||||||
Less expenses waived | (69,418 | ) | (99,721 | ) | (135,280 | ) | ||||||
Less expenses paid indirectly | (708 | ) | (1,196 | ) | (413 | ) | ||||||
|
|
|
|
|
| |||||||
Total operating expenses | 323,766 | 389,419 | 912,085 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 1,134,846 | 1,543,790 | 3,260,523 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain: | ||||||||||||
Net realized gain | 528,905 | 514,239 | 1,071,531 | |||||||||
Net change in unrealized appreciation (depreciation) of investments | 1,135,818 | 1,799,805 | 3,026,607 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain | 1,664,723 | 2,314,044 | 4,098,138 | |||||||||
|
|
|
|
|
| |||||||
Net Increase in Net Assets Resulting from Operations | $2,799,569 | $3,857,834 | $7,358,661 | |||||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
64
Table of Contents
Delaware Tax-Free Idaho Fund | Delaware Tax-Free New York Fund | Delaware Tax-Free Pennsylvania Fund | ||||||||||
Investment Income: | ||||||||||||
Interest | $1,987,235 | $1,614,157 | $ 8,643,834 | |||||||||
Dividends | 5,846 | — | — | |||||||||
|
|
|
|
|
| |||||||
1,993,081 | 1,614,157 | 8,643,834 | ||||||||||
|
|
|
|
|
| |||||||
Expenses: | ||||||||||||
Management fees | 291,377 | 240,298 | 1,223,934 | |||||||||
Distribution expenses — Class A | 70,389 | 45,069 | 454,217 | |||||||||
Distribution expenses — Class C | 59,734 | 61,328 | 112,563 | |||||||||
Dividend disbursing and transfer agent fees and expenses | 32,897 | 27,537 | 128,646 | |||||||||
Accounting and administration expenses | 27,924 | 26,443 | 55,074 | |||||||||
Audit and tax fees | 22,950 | 22,950 | 22,950 | |||||||||
Legal fees | 6,927 | 6,135 | 23,532 | |||||||||
Reports and statements to shareholders expenses | 6,636 | 6,830 | 20,786 | |||||||||
Registration fees | 6,197 | 11,045 | 12,225 | |||||||||
Trustees’ fees and expenses | 2,536 | 2,104 | 10,731 | |||||||||
Custodian fees | 1,512 | 1,667 | 6,280 | |||||||||
Other | 8,425 | 11,147 | 20,815 | |||||||||
|
|
|
|
|
| |||||||
537,504 | 462,553 | 2,091,753 | ||||||||||
Less expenses waived | (83,819 | ) | (115,076 | ) | (209,771 | ) | ||||||
Less expenses paid indirectly | (454 | ) | (746 | ) | (2,050 | ) | ||||||
|
|
|
|
|
| |||||||
Total operating expenses | 453,231 | 346,731 | 1,879,932 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 1,539,850 | 1,267,426 | 6,763,902 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain: | ||||||||||||
Net realized gain | 391,436 | 863,710 | 4,028,491 | |||||||||
Net change in unrealized appreciation (depreciation) of investments | 1,426,811 | 1,234,064 | 5,041,244 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain | 1,818,247 | 2,097,774 | 9,069,735 | |||||||||
|
|
|
|
|
| |||||||
Net Increase in Net Assets Resulting from Operations | $3,358,097 | $3,365,200 | $15,833,637 | |||||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
65
Table of Contents
Statements of changes in net assets
DelawareTax-Free Arizona Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 1,134,846 | $ | 2,491,421 | ||||
Net realized gain | 528,905 | 393,695 | ||||||
Net change in unrealized appreciation (depreciation) | 1,135,818 | 2,638,928 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 2,799,569 | 5,524,044 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (992,538 | ) | (1,967,135 | ) | ||||
Class C | (35,431 | ) | (76,738 | ) | ||||
Institutional Class | (260,183 | ) | (409,955 | ) | ||||
|
|
|
| |||||
(1,288,152 | ) | (2,453,828 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 2,118,242 | 2,955,388 | ||||||
Class C | 129,434 | 480,567 | ||||||
Institutional Class | 2,629,612 | 6,622,321 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 801,980 | 1,574,396 | ||||||
Class C | 33,279 | 72,176 | ||||||
Institutional Class | 248,391 | 386,192 | ||||||
|
|
|
| |||||
5,960,938 | 12,091,040 | |||||||
|
|
|
|
66
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (2,514,049 | ) | $ | (8,235,796 | ) | ||
Class C | (432,201 | ) | (701,906 | ) | ||||
Institutional Class | (477,856 | ) | (3,500,751 | ) | ||||
|
|
|
| |||||
(3,424,106 | ) | (12,438,453 | ) | |||||
|
|
|
| |||||
Increase (decrease) in net assets derived from capital share transactions | 2,536,832 | (347,413 | ) | |||||
|
|
|
| |||||
Net Increase in Net Assets | 4,048,249 | 2,722,803 | ||||||
Net Assets: | ||||||||
Beginning of period | 79,269,106 | 76,546,303 | ||||||
|
|
|
| |||||
End of period | $ | 83,317,355 | $ | 79,269,106 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
67
Table of Contents
Statements of changes in net assets
DelawareTax-Free California Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 1,543,790 | $ | 3,217,006 | ||||
Net realized gain | 514,239 | 685,110 | ||||||
Net change in unrealized appreciation (depreciation) | 1,799,805 | 3,465,712 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 3,857,834 | 7,367,828 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (1,031,585 | ) | (1,658,408 | ) | ||||
Class C | (222,128 | ) | (324,849 | ) | ||||
Institutional Class | (1,198,418 | ) | (1,388,704 | ) | ||||
|
|
|
| |||||
(2,452,131 | ) | (3,371,961 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 2,374,613 | 2,965,405 | ||||||
Class C | 597,631 | 1,612,305 | ||||||
Institutional Class | 10,161,006 | 24,977,510 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 936,308 | 1,478,640 | ||||||
Class C | 183,722 | 268,745 | ||||||
Institutional Class | 872,141 | 941,368 | ||||||
|
|
|
| |||||
15,125,421 | 32,243,973 | |||||||
|
|
|
|
68
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (2,694,741 | ) | $ | (17,173,906 | ) | ||
Class C | (1,574,662 | ) | (3,810,193 | ) | ||||
Institutional Class | (7,412,366 | ) | (15,995,310 | ) | ||||
|
|
|
| |||||
(11,681,769 | ) | (36,979,409 | ) | |||||
|
|
|
| |||||
Increase (decrease) in net assets derived from capital share transactions | 3,443,652 | (4,735,436 | ) | |||||
|
|
|
| |||||
Net Increase (Decrease) in Net Assets Net Assets: | 4,849,355 | (739,569 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 98,399,589 | 99,139,158 | ||||||
|
|
|
| |||||
End of period | $ | 103,248,944 | $ | 98,399,589 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
69
Table of Contents
Statements of changes in net assets
DelawareTax-Free Colorado Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 3,260,523 | $ | 6,761,506 | ||||
Net realized gain | 1,071,531 | 680,050 | ||||||
Net change in unrealized appreciation (depreciation) | 3,026,607 | 7,595,228 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 7,358,661 | 15,036,784 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (2,423,659 | ) | (5,362,602 | ) | ||||
Class C | (106,821 | ) | (259,844 | ) | ||||
Institutional Class | (724,488 | ) | (1,136,337 | ) | ||||
|
|
|
| |||||
(3,254,968 | ) | (6,758,783 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 8,725,521 | 10,480,175 | ||||||
Class C | 553,398 | 1,296,364 | ||||||
Institutional Class | 11,716,076 | 21,425,538 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 2,183,746 | 4,775,340 | ||||||
Class C | 104,612 | 246,683 | ||||||
Institutional Class | 676,207 | 1,026,471 | ||||||
|
|
|
| |||||
23,959,560 | 39,250,571 | |||||||
|
|
|
|
70
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (8,157,697 | ) | $ | (18,606,927 | ) | ||
Class C | (1,239,890 | ) | (2,489,442 | ) | ||||
Institutional Class | (3,887,177 | ) | (9,058,719 | ) | ||||
|
|
|
| |||||
(13,284,764 | ) | (30,155,088 | ) | |||||
|
|
|
| |||||
Increase in net assets derived from capital share transactions | 10,674,796 | 9,095,483 | ||||||
|
|
|
| |||||
Net Increase in Net Assets | 14,778,489 | 17,373,484 | ||||||
Net Assets: | ||||||||
Beginning of period | 219,816,881 | 202,443,397 | ||||||
|
|
|
| |||||
End of period | $ | 234,595,370 | $ | 219,816,881 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
71
Table of Contents
Statements of changes in net assets
DelawareTax-Free Idaho Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 1,539,850 | $ | 3,022,948 | ||||
Net realized gain | 391,436 | 124,264 | ||||||
Net change in unrealized appreciation (depreciation) | 1,426,811 | 3,691,615 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 3,358,097 | 6,838,827 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (822,828 | ) | (1,747,356 | ) | ||||
Class C | (129,853 | ) | (348,293 | ) | ||||
Institutional Class | (596,830 | ) | (919,443 | ) | ||||
|
|
|
| |||||
(1,549,511 | ) | (3,015,092 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 5,459,617 | 5,186,079 | ||||||
Class C | 684,792 | 981,176 | ||||||
Institutional Class | 6,407,374 | 21,084,240 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 774,450 | 1,618,585 | ||||||
Class C | 125,033 | 337,431 | ||||||
Institutional Class | 534,923 | 786,152 | ||||||
|
|
|
| |||||
13,986,189 | 29,993,663 | |||||||
|
|
|
|
72
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (4,164,790 | ) | $ | (12,821,129 | ) | ||
Class C | (2,147,081 | ) | (6,549,156 | ) | ||||
Institutional Class | (1,865,529 | ) | (9,266,863 | ) | ||||
|
|
|
| |||||
(8,177,400 | ) | (28,637,148 | ) | |||||
|
|
|
| |||||
Increase in net assets derived from capital share transactions | 5,808,789 | 1,356,515 | ||||||
|
|
|
| |||||
Net Increase in Net Assets | 7,617,375 | 5,180,250 | ||||||
Net Assets: | ||||||||
Beginning of period | 103,512,091 | 98,331,841 | ||||||
|
|
|
| |||||
End of period | $ | 111,129,466 | $ | 103,512,091 | ||||
|
|
|
|
See | accompanying notes, which are an integral part of the financial statements. |
73
Table of Contents
Statements of changes in net assets
DelawareTax-Free New York Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 1,267,426 | $ | 2,622,309 | ||||
Net realized gain | 863,710 | 585,562 | ||||||
Net change in unrealized appreciation (depreciation) | 1,234,064 | 3,228,074 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 3,365,200 | 6,435,945 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (705,124 | ) | (1,100,376 | ) | ||||
Class C | (192,732 | ) | (331,625 | ) | ||||
Institutional Class | (807,701 | ) | (1,194,609 | ) | ||||
|
|
|
| |||||
(1,705,557 | ) | (2,626,610 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 1,818,679 | 6,693,985 | ||||||
Class C | 359,535 | 1,503,175 | ||||||
Institutional Class | 5,379,080 | 16,439,856 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 644,576 | 1,011,485 | ||||||
Class C | 133,429 | 232,362 | ||||||
Institutional Class | 741,175 | 1,065,959 | ||||||
|
|
|
| |||||
9,076,474 | 26,946,822 | |||||||
|
|
|
|
74
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (2,243,392 | ) | $ | (11,304,145 | ) | ||
Class C | (1,974,050 | ) | (3,817,643 | ) | ||||
Institutional Class | (4,347,202 | ) | (12,814,924 | ) | ||||
|
|
|
| |||||
(8,564,644 | ) | (27,936,712 | ) | |||||
|
|
|
| |||||
Increase (decrease) in net assets derived from capital share transactions | 511,830 | (989,890 | ) | |||||
|
|
|
| |||||
Net Increase in Net Assets | 2,171,473 | 2,819,445 | ||||||
Net Assets: | ||||||||
Beginning of period | 88,880,238 | 86,060,793 | ||||||
|
|
|
| |||||
End of period | $ | 91,051,711 | $ | 88,880,238 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
75
Table of Contents
Statements of changes in net assets
DelawareTax-Free Pennsylvania Fund
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 6,763,902 | $ | 15,062,570 | ||||
Net realized gain | 4,028,491 | 2,465,773 | ||||||
Net change in unrealized appreciation (depreciation) | 5,041,244 | 14,954,570 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 15,833,637 | 32,482,913 | ||||||
|
|
|
| |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (9,154,756 | ) | (12,803,560 | ) | ||||
Class C | (463,836 | ) | (683,223 | ) | ||||
Institutional Class | (1,264,512 | ) | (1,575,787 | ) | ||||
|
|
|
| |||||
(10,883,104 | ) | (15,062,570 | ) | |||||
|
|
|
| |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 22,892,739 | 30,339,814 | ||||||
Class C | 2,230,113 | 2,951,101 | ||||||
Institutional Class | 7,467,129 | 19,813,229 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 8,238,904 | 11,094,776 | ||||||
Class C | 446,601 | 645,844 | ||||||
Institutional Class | 1,097,851 | 1,355,377 | ||||||
|
|
|
| |||||
42,373,337 | 66,200,141 | |||||||
|
|
|
|
76
Table of Contents
Six months | ||||||||
ended | ||||||||
2/29/20 | Year ended | |||||||
(Unaudited) | 8/31/19 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (23,348,100 | ) | $ | (57,138,828 | ) | ||
Class C | (4,761,724 | ) | (5,875,403 | ) | ||||
Institutional Class | (2,777,029 | ) | (17,175,868 | ) | ||||
|
|
|
| |||||
(30,886,853 | ) | (80,190,099 | ) | |||||
|
|
|
| |||||
Increase (decrease) in net assets derived from capital share transactions | 11,486,484 | (13,989,958 | ) | |||||
|
|
|
| |||||
Net Increase in Net Assets | 16,437,017 | 3,430,385 | ||||||
Net Assets: | ||||||||
Beginning of period | 449,270,939 | 445,840,554 | ||||||
|
|
|
| |||||
End of period | $ | 465,707,956 | $ | 449,270,939 | ||||
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
77
Table of Contents
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
78
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.70 | $ | 11.24 | $ | 11.48 | $ | 11.83 | $ | 11.44 | $ | 11.45 | |||||||||||||||||||||||||||||||
0.16 | 0.37 | 0.36 | 0.37 | 0.38 | 0.38 | |||||||||||||||||||||||||||||||||||||
0.25 | 0.46 | (0.24 | ) | (0.35 | ) | 0.39 | (0.01 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.41 | 0.83 | 0.12 | 0.02 | 0.77 | 0.37 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.19 | ) | (0.37 | ) | (0.36 | ) | (0.37 | ) | (0.38 | ) | (0.38 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.19 | ) | (0.37 | ) | (0.36 | ) | (0.37 | ) | (0.38 | ) | (0.38 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.92 | $ | 11.70 | $ | 11.24 | $ | 11.48 | $ | 11.83 | $ | 11.44 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.53% | 7.51% | 1.11% | 0.24% | 6.79% | 3.24% | |||||||||||||||||||||||||||||||||||||
$ | 63,588 | $ | 62,033 | $ | 63,327 | $ | 66,839 | $ | 74,556 | $ | 77,085 | |||||||||||||||||||||||||||||||
0.84% | 0.84% | 0.84% | 0.84% | 0.84% | 0.85% | |||||||||||||||||||||||||||||||||||||
1.02% | 1.02% | 1.00% | 0.97% | 0.96% | 0.97% | |||||||||||||||||||||||||||||||||||||
2.86% | 3.29% | 3.23% | 3.25% | 3.23% | 3.28% | |||||||||||||||||||||||||||||||||||||
2.68% | 3.11% | 3.07% | 3.12% | 3.11% | 3.16% | |||||||||||||||||||||||||||||||||||||
18% | 31% | 6% | 9% | 14% | 12% | |||||||||||||||||||||||||||||||||||||
|
79
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
80
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.73 | $ | 11.27 | $ | 11.51 | $ | 11.87 | $ | 11.47 | $ | 11.48 | |||||||||||||||||||||||||||||||
0.12 | 0.28 | 0.28 | 0.29 | 0.29 | 0.29 | |||||||||||||||||||||||||||||||||||||
0.24 | 0.46 | (0.24 | ) | (0.37 | ) | 0.40 | (0.01 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.36 | 0.74 | 0.04 | (0.08 | ) | 0.69 | 0.28 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.14 | ) | (0.28 | ) | (0.28 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.14 | ) | (0.28 | ) | (0.28 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.95 | $ | 11.73 | $ | 11.27 | $ | 11.51 | $ | 11.87 | $ | 11.47 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.15% | 6.70% | 0.36% | (0.59% | ) | 6.07% | 2.47% | ||||||||||||||||||||||||||||||||||||
$ | 2,879 | $ | 3,100 | $ | 3,122 | $ | 5,215 | $ | 6,816 | $ | 6,747 | |||||||||||||||||||||||||||||||
1.59% | 1.59% | 1.59% | 1.59% | 1.59% | 1.60% | |||||||||||||||||||||||||||||||||||||
1.77% | 1.77% | 1.75% | 1.72% | 1.71% | 1.72% | |||||||||||||||||||||||||||||||||||||
2.11% | 2.54% | 2.48% | 2.50% | 2.48% | 2.54% | |||||||||||||||||||||||||||||||||||||
1.93% | 2.36% | 2.32% | 2.37% | 2.36% | 2.42% | |||||||||||||||||||||||||||||||||||||
18% | 31% | 6% | 9% | 14% | 12% | |||||||||||||||||||||||||||||||||||||
|
81
Table of Contents
Financial highlights
DelawareTax-Free Arizona Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
82
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.70 | $ | 11.24 | $ | 11.48 | $ | 11.84 | $ | 11.44 | $ | 11.45 | |||||||||||||||||||||||||||||||
0.18 | 0.39 | 0.39 | 0.40 | 0.41 | 0.41 | |||||||||||||||||||||||||||||||||||||
0.24 | 0.46 | (0.24 | ) | (0.36 | ) | 0.39 | (0.01 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.42 | 0.85 | 0.15 | 0.04 | 0.80 | 0.40 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.20 | ) | (0.39 | ) | (0.39 | ) | (0.40 | ) | (0.40 | ) | (0.41 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.20 | ) | (0.39 | ) | (0.39 | ) | (0.40 | ) | (0.40 | ) | (0.41 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.92 | $ | 11.70 | $ | 11.24 | $ | 11.48 | $ | 11.84 | $ | 11.44 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.66% | 7.78% | 1.36% | 0.40% | 7.14% | 3.49% | |||||||||||||||||||||||||||||||||||||
$ | 16,850 | $ | 14,136 | $ | 10,097 | $ | 7,080 | $ | 3,645 | $ | 744 | |||||||||||||||||||||||||||||||
0.59% | 0.59% | 0.59% | 0.59% | 0.59% | 0.60% | |||||||||||||||||||||||||||||||||||||
0.77% | 0.77% | 0.75% | 0.72% | 0.71% | 0.72% | |||||||||||||||||||||||||||||||||||||
3.11% | 3.54% | 3.48% | 3.50% | 3.48% | 3.54% | |||||||||||||||||||||||||||||||||||||
2.93% | 3.36% | 3.32% | 3.37% | 3.36% | 3.42% | |||||||||||||||||||||||||||||||||||||
18% | 31% | 6% | 9% | 14% | 12% | |||||||||||||||||||||||||||||||||||||
|
83
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
84
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 12.49 | $ | 11.98 | $ | 12.26 | $ | 12.60 | $ | 12.11 | $ | 12.08 | |||||||||||||||||||||||||||||||
0.19 | 0.40 | 0.40 | 0.41 | 0.43 | 0.42 | |||||||||||||||||||||||||||||||||||||
0.28 | 0.53 | (0.28 | ) | (0.34 | ) | 0.48 | 0.03 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.47 | 0.93 | 0.12 | 0.07 | 0.91 | 0.45 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.19 | ) | (0.40 | ) | (0.40 | ) | (0.41 | ) | (0.42 | ) | (0.42 | ) | |||||||||||||||||||||||||||||||
(0.11 | ) | (0.02 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.30 | ) | (0.42 | ) | (0.40 | ) | (0.41 | ) | (0.42 | ) | (0.42 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.66 | $ | 12.49 | $ | 11.98 | $ | 12.26 | $ | 12.60 | $ | 12.11 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.87% | 7.99% | 1.00% | 0.63% | 7.67% | 3.73% | |||||||||||||||||||||||||||||||||||||
$ | 43,416 | $ | 42,203 | $ | 53,171 | $ | 54,076 | $ | 63,284 | $ | 60,550 | |||||||||||||||||||||||||||||||
0.82% | 0.82% | 0.82% | 0.82% | 0.82% | 0.83% | |||||||||||||||||||||||||||||||||||||
1.02% | 1.03% | 1.02% | 1.01% | 1.01% | 1.01% | |||||||||||||||||||||||||||||||||||||
3.08% | 3.36% | 3.30% | 3.36% | 3.43% | 3.42% | |||||||||||||||||||||||||||||||||||||
2.88% | 3.15% | 3.10% | 3.17% | 3.24% | 3.24% | |||||||||||||||||||||||||||||||||||||
27% | 32% | 16% | 27% | 18% | 24% | |||||||||||||||||||||||||||||||||||||
|
85
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
86
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 12.52 | $ | 12.00 | $ | 12.28 | $ | 12.62 | $ | 12.13 | $ | 12.10 | |||||||||||||||||||||||||||||||
0.14 | 0.32 | 0.31 | 0.32 | 0.33 | 0.33 | |||||||||||||||||||||||||||||||||||||
0.27 | 0.54 | (0.28 | ) | (0.34 | ) | 0.49 | 0.02 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.41 | 0.86 | 0.03 | (0.02 | ) | 0.82 | 0.35 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.14 | ) | (0.32 | ) | (0.31 | ) | (0.32 | ) | (0.33 | ) | (0.32 | ) | |||||||||||||||||||||||||||||||
(0.11 | ) | (0.02 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.25 | ) | (0.34 | ) | (0.31 | ) | (0.32 | ) | (0.33 | ) | (0.32 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.68 | $ | 12.52 | $ | 12.00 | $ | 12.28 | $ | 12.62 | $ | 12.13 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.39% | 7.26% | 0.25% | (0.12% | ) | 6.86% | 2.95% | ||||||||||||||||||||||||||||||||||||
$ | 10,891 | $ | 11,551 | $ | 13,015 | $ | 16,473 | $ | 18,827 | $ | 15,853 | |||||||||||||||||||||||||||||||
1.57% | 1.57% | 1.57% | 1.57% | 1.57% | 1.58% | |||||||||||||||||||||||||||||||||||||
1.77% | 1.78% | 1.77% | 1.76% | 1.76% | 1.76% | |||||||||||||||||||||||||||||||||||||
2.33% | 2.61% | 2.55% | 2.61% | 2.68% | 2.67% | |||||||||||||||||||||||||||||||||||||
2.13% | 2.40% | 2.35% | 2.42% | 2.49% | 2.49% | |||||||||||||||||||||||||||||||||||||
27% | 32% | 16% | 27% | 18% | 24% | |||||||||||||||||||||||||||||||||||||
|
87
Table of Contents
Financial highlights
DelawareTax-Free California Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
88
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 12.49 | $ | 11.98 | $ | 12.26 | $ | 12.60 | $ | 12.11 | $ | 12.08 | |||||||||||||||||||||||||||||||
0.20 | 0.43 | 0.43 | 0.44 | 0.46 | 0.45 | |||||||||||||||||||||||||||||||||||||
0.28 | 0.53 | (0.28 | ) | (0.34 | ) | 0.49 | 0.03 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.48 | 0.96 | 0.15 | 0.10 | 0.95 | 0.48 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.20 | ) | (0.43 | ) | (0.43 | ) | (0.44 | ) | (0.46 | ) | (0.45 | ) | |||||||||||||||||||||||||||||||
(0.11 | ) | (0.02 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.31 | ) | (0.45 | ) | (0.43 | ) | (0.44 | ) | (0.46 | ) | (0.45 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.66 | $ | 12.49 | $ | 11.98 | $ | 12.26 | $ | 12.60 | $ | 12.11 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.99% | 8.25% | 1.26% | 0.89% | 7.94% | 3.98% | |||||||||||||||||||||||||||||||||||||
$ | 48,942 | $ | 44,646 | $ | 32,953 | $ | 28,209 | $ | 17,410 | $ | 10,308 | |||||||||||||||||||||||||||||||
0.57% | 0.57% | 0.57% | 0.57% | 0.57% | 0.58% | |||||||||||||||||||||||||||||||||||||
0.77% | 0.78% | 0.77% | 0.76% | 0.76% | 0.76% | |||||||||||||||||||||||||||||||||||||
3.33% | 3.61% | 3.55% | 3.61% | 3.68% | 3.67% | |||||||||||||||||||||||||||||||||||||
3.13% | 3.40% | 3.35% | 3.42% | 3.49% | 3.49% | |||||||||||||||||||||||||||||||||||||
27% | 32% | 16% | 27% | 18% | 24% | |||||||||||||||||||||||||||||||||||||
|
89
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
90
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.48 | $ | 11.04 | $ | 11.28 | $ | 11.65 | $ | 11.24 | $ | 11.32 | |||||||||||||||||||||||||||||||
0.16 | 0.37 | 0.37 | 0.39 | 0.40 | 0.40 | |||||||||||||||||||||||||||||||||||||
0.20 | 0.44 | (0.24 | ) | (0.37 | ) | 0.41 | (0.08 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.36 | 0.81 | 0.13 | 0.02 | 0.81 | 0.32 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.16 | ) | (0.37 | ) | (0.37 | ) | (0.39 | ) | (0.40 | ) | (0.40 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.16 | ) | (0.37 | ) | (0.37 | ) | (0.39 | ) | (0.40 | ) | (0.40 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.68 | $ | 11.48 | $ | 11.04 | $ | 11.28 | $ | 11.65 | $ | 11.24 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.22% | 7.48% | 1.22% | 0.26% | 7.33% | 2.87% | |||||||||||||||||||||||||||||||||||||
$ | 172,876 | $ | 167,136 | $ | 164,087 | $ | 165,554 | $ | 182,764 | $ | 174,078 | |||||||||||||||||||||||||||||||
0.84% | 0.84% | 0.84% | 0.84% | 0.84% | 0.85% | |||||||||||||||||||||||||||||||||||||
0.96% | 0.97% | 0.97% | 0.96% | 0.96% | 0.97% | |||||||||||||||||||||||||||||||||||||
2.92% | 3.31% | 3.36% | 3.48% | 3.50% | 3.54% | |||||||||||||||||||||||||||||||||||||
2.80% | 3.18% | 3.23% | 3.36% | 3.38% | 3.42% | |||||||||||||||||||||||||||||||||||||
12% | 16% | 6% | 17% | 6% | 10% | |||||||||||||||||||||||||||||||||||||
|
91
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period. |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
92
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.51 | $ | 11.07 | $ | 11.31 | $ | 11.68 | $ | 11.27 | $ | 11.35 | |||||||||||||||||||||||||||||||
0.12 | 0.29 | 0.29 | 0.31 | 0.32 | 0.32 | |||||||||||||||||||||||||||||||||||||
0.20 | 0.44 | (0.24 | ) | (0.37 | ) | 0.41 | (0.08 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.32 | 0.73 | 0.05 | (0.06 | ) | 0.73 | 0.24 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.12 | ) | (0.29 | ) | (0.29 | ) | (0.31 | ) | (0.32 | ) | (0.32 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.12 | ) | (0.29 | ) | (0.29 | ) | (0.31 | ) | (0.32 | ) | (0.32 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.71 | $ | 11.51 | $ | 11.07 | $ | 11.31 | $ | 11.68 | $ | 11.27 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
2.84% | 6.67% | 0.47% | (0.48% | ) | 6.52% | 2.10% | ||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||
$ | 9,947 | $ | 10,364 | $ | 10,923 | $ | 15,975 | $ | 16,461 | $ | 12,192 | |||||||||||||||||||||||||||||||
1.59% | 1.59% | 1.59% | 1.59% | 1.59% | 1.60% | |||||||||||||||||||||||||||||||||||||
1.71% | 1.72% | 1.72% | 1.71% | 1.71% | 1.72% | |||||||||||||||||||||||||||||||||||||
2.17% | 2.56% | 2.61% | 2.73% | 2.75% | 2.79% | |||||||||||||||||||||||||||||||||||||
2.05% | 2.43% | 2.48% | 2.61% | 2.63% | 2.67% | |||||||||||||||||||||||||||||||||||||
12% | 16% | 6% | 17% | 6% | 10% | |||||||||||||||||||||||||||||||||||||
|
93
Table of Contents
Financial highlights
DelawareTax-Free Colorado Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
94
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.48 | $ | 11.04 | $ | 11.28 | $ | 11.65 | $ | 11.24 | $ | 11.32 | |||||||||||||||||||||||||||||||
0.18 | 0.40 | 0.40 | 0.42 | 0.43 | 0.43 | |||||||||||||||||||||||||||||||||||||
0.20 | 0.44 | (0.24 | ) | (0.37 | ) | 0.41 | (0.08 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.38 | 0.84 | 0.16 | 0.05 | 0.84 | 0.35 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.18 | ) | (0.40 | ) | (0.40 | ) | (0.42 | ) | (0.43 | ) | (0.43 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.18 | ) | (0.40 | ) | (0.40 | ) | (0.42 | ) | (0.43 | ) | (0.43 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.68 | $ | 11.48 | $ | 11.04 | $ | 11.28 | $ | 11.65 | $ | 11.24 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.35% | 7.74% | 1.47% | 0.51% | 7.60% | 3.13% | |||||||||||||||||||||||||||||||||||||
$ | 51,772 | $ | 42,317 | $ | 27,433 | $ | 19,788 | $ | 12,211 | $ | 5,102 | |||||||||||||||||||||||||||||||
0.59% | 0.59% | 0.59% | 0.59% | 0.59% | 0.60% | |||||||||||||||||||||||||||||||||||||
0.71% | 0.72% | 0.72% | 0.71% | 0.71% | 0.72% | |||||||||||||||||||||||||||||||||||||
3.17% | 3.56% | 3.61% | 3.73% | 3.75% | 3.79% | |||||||||||||||||||||||||||||||||||||
3.05% | 3.43% | 3.48% | 3.61% | 3.63% | 3.67% | |||||||||||||||||||||||||||||||||||||
12% | 16% | 6% | 17% | 6% | 10% | |||||||||||||||||||||||||||||||||||||
|
95
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
96
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.65 | $ | 11.21 | $ | 11.49 | $ | 11.79 | $ | 11.51 | $ | 11.56 | |||||||||||||||||||||||||||||||
0.17 | 0.35 | 0.34 | 0.35 | 0.36 | 0.37 | |||||||||||||||||||||||||||||||||||||
0.19 | 0.44 | (0.28 | ) | (0.30 | ) | 0.28 | (0.06 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.36 | 0.79 | 0.06 | 0.05 | 0.64 | 0.31 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.17 | ) | (0.35 | ) | (0.34 | ) | (0.35 | ) | (0.36 | ) | (0.36 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.17 | ) | (0.35 | ) | (0.34 | ) | (0.35 | ) | (0.36 | ) | (0.36 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.84 | $ | 11.65 | $ | 11.21 | $ | 11.49 | $ | 11.79 | $ | 11.51 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.12% | 7.19% | 0.56% | 0.47% | 5.66% | 2.76% | |||||||||||||||||||||||||||||||||||||
$ | 58,489 | $ | 55,480 | $ | 59,425 | $ | 67,907 | $ | 70,306 | $ | 75,163 | |||||||||||||||||||||||||||||||
0.86% | 0.86% | 0.86% | 0.86% | 0.86% | 0.88% | |||||||||||||||||||||||||||||||||||||
1.02% | 1.03% | 1.01% | 1.00% | 0.99% | 1.00% | |||||||||||||||||||||||||||||||||||||
2.90% | 3.11% | 3.04% | 3.03% | 3.11% | 3.17% | |||||||||||||||||||||||||||||||||||||
2.74% | 2.94% | 2.89% | 2.89% | 2.98% | 3.05% | |||||||||||||||||||||||||||||||||||||
8% | 14% | 11% | 10% | 11% | 7% | |||||||||||||||||||||||||||||||||||||
|
97
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
98
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.64 | $ | 11.20 | $ | 11.48 | $ | 11.78 | $ | 11.50 | $ | 11.55 | |||||||||||||||||||||||||||||||
0.12 | 0.27 | 0.26 | 0.26 | 0.27 | 0.28 | |||||||||||||||||||||||||||||||||||||
0.19 | 0.44 | (0.28 | ) | (0.30 | ) | 0.28 | (0.05 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.31 | 0.71 | (0.02 | ) | (0.04 | ) | 0.55 | 0.23 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.12 | ) | (0.27 | ) | (0.26 | ) | (0.26 | ) | (0.27 | ) | (0.28 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.12 | ) | (0.27 | ) | (0.26 | ) | (0.26 | ) | (0.27 | ) | (0.28 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.83 | $ | 11.64 | $ | 11.20 | $ | 11.48 | $ | 11.78 | $ | 11.50 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
2.74% | 6.40% | (0.19% | ) | (0.29% | ) | 4.88% | 1.99% | |||||||||||||||||||||||||||||||||||
$ | 11,714 | $ | 12,875 | $ | 17,597 | $ | 29,375 | $ | 30,834 | $ | 28,557 | |||||||||||||||||||||||||||||||
1.61% | 1.61% | 1.61% | 1.61% | 1.61% | 1.63% | |||||||||||||||||||||||||||||||||||||
1.77% | 1.78% | 1.76% | 1.75% | 1.74% | 1.75% | |||||||||||||||||||||||||||||||||||||
2.15% | 2.36% | 2.29% | 2.28% | 2.36% | 2.42% | |||||||||||||||||||||||||||||||||||||
1.99% | 2.19% | 2.14% | 2.14% | 2.23% | 2.30% | |||||||||||||||||||||||||||||||||||||
8% | 14% | 11% | 10% | 11% | 7% | |||||||||||||||||||||||||||||||||||||
|
99
Table of Contents
Financial highlights
DelawareTax-Free Idaho Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period. |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
100
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.65 | $ | 11.21 | $ | 11.49 | $ | 11.79 | $ | 11.51 | $ | 11.57 | |||||||||||||||||||||||||||||||
0.18 | 0.38 | 0.37 | 0.37 | 0.39 | 0.40 | |||||||||||||||||||||||||||||||||||||
0.19 | 0.44 | (0.28 | ) | (0.29 | ) | 0.28 | (0.07 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.37 | 0.82 | 0.09 | 0.08 | 0.67 | 0.33 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.18 | ) | (0.38 | ) | (0.37 | ) | (0.38 | ) | (0.39 | ) | (0.39 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.18 | ) | (0.38 | ) | (0.37 | ) | (0.38 | ) | (0.39 | ) | (0.39 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 11.84 | $ | 11.65 | $ | 11.21 | $ | 11.49 | $ | 11.79 | $ | 11.51 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.25% | 7.46% | 0.82% | 0.71% | 5.92% | 2.92% | |||||||||||||||||||||||||||||||||||||
$ | 40,926 | $ | 35,157 | $ | 21,310 | $ | 12,090 | $ | 10,248 | $ | 2,588 | |||||||||||||||||||||||||||||||
0.61% | 0.61% | 0.61% | 0.61% | 0.61% | 0.63% | |||||||||||||||||||||||||||||||||||||
0.77% | 0.78% | 0.76% | 0.75% | 0.74% | 0.75% | |||||||||||||||||||||||||||||||||||||
3.15% | 3.36% | 3.29% | 3.28% | 3.36% | 3.42% | |||||||||||||||||||||||||||||||||||||
2.99% | 3.19% | 3.14% | 3.14% | 3.23% | 3.30% | |||||||||||||||||||||||||||||||||||||
8% | 14% | 11% | 10% | 11% | 7% | |||||||||||||||||||||||||||||||||||||
|
101
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
102
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.86 | $ | 11.33 | $ | 11.62 | $ | 11.98 | $ | 11.48 | $ | 11.46 | |||||||||||||||||||||||||||||||
0.17 | 0.36 | 0.36 | 0.35 | 0.36 | 0.37 | |||||||||||||||||||||||||||||||||||||
0.28 | 0.53 | (0.29 | ) | (0.35 | ) | 0.50 | 0.02 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.45 | 0.89 | 0.07 | — | 0.86 | 0.39 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.17 | ) | (0.36 | ) | (0.36 | ) | (0.36 | ) | (0.36 | ) | (0.37 | ) | |||||||||||||||||||||||||||||||
(0.06 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.23 | ) | (0.36 | ) | (0.36 | ) | (0.36 | ) | (0.36 | ) | (0.37 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.08 | $ | 11.86 | $ | 11.33 | $ | 11.62 | $ | 11.98 | $ | 11.48 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.85% | 8.00% | 0.60% | 0.05% | 7.57% | 3.41% | |||||||||||||||||||||||||||||||||||||
$ | 36,957 | $ | 36,058 | $ | 38,139 | $ | 40,647 | $ | 55,418 | $ | 51,708 | |||||||||||||||||||||||||||||||
0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.83% | |||||||||||||||||||||||||||||||||||||
1.06% | 1.07% | 1.08% | 1.03% | 1.02% | 1.07% | |||||||||||||||||||||||||||||||||||||
2.89% | 3.12% | 3.10% | 3.04% | 3.06% | 3.18% | |||||||||||||||||||||||||||||||||||||
2.63% | 2.85% | 2.82% | 2.81% | 2.84% | 2.94% | |||||||||||||||||||||||||||||||||||||
20% | 21% | 10% | 14% | 8% | 6% | |||||||||||||||||||||||||||||||||||||
|
103
Table of Contents
Financial highlights
DelawareTax-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 income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
104
Table of Contents
Six months ended | ||||||||||||||||||||||||||||||||||||||||||
2/29/201 | Year ended | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.83 | $ | 11.30 | $ | 11.59 | $ | 11.95 | $ | 11.45 | $ | 11.44 | |||||||||||||||||||||||||||||||
0.13 | 0.27 | 0.27 | 0.26 | 0.27 | 0.28 | |||||||||||||||||||||||||||||||||||||
0.28 | 0.53 | (0.29 | ) | (0.35 | ) | 0.50 | 0.01 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
0.41 | 0.80 | (0.02 | ) | (0.09 | ) | 0.77 | 0.29 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.13 | ) | (0.27 | ) | (0.27 | ) | (0.27 | ) | (0.27 | ) | (0.28 | ) | |||||||||||||||||||||||||||||||
(0.06 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(0.19 | ) | (0.27 | ) | (0.27 | ) | (0.27 | ) | (0.27 | ) | (0.28 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 12.05 | $ | 11.83 | $ | 11.30 | $ | 11.59 | $ | 11.95 | $ | 11.45 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
3.48% | 7.20% | (0.16% | ) | (0.71% | ) | 6.78% | 2.55% | |||||||||||||||||||||||||||||||||||
$ | 12,185 | $ | 13,459 | $ | 14,941 | $ | 17,073 | $ | 20,899 | $ | 17,825 | |||||||||||||||||||||||||||||||
1.55% | 1.55% | 1.55% | 1.55% | 1.55% | 1.58% | |||||||||||||||||||||||||||||||||||||
1.81% | 1.82% | 1.83% | 1.78% | 1.77% | 1.82% | |||||||||||||||||||||||||||||||||||||
2.14% | 2.37% | 2.35% | 2.29% | 2.31% | 2.43% | |||||||||||||||||||||||||||||||||||||
1.88% | 2.10% | 2.07% | 2.06% | 2.09% | 2.19% | |||||||||||||||||||||||||||||||||||||
20% | 21% | 10% | 14% | 8% | 6% | |||||||||||||||||||||||||||||||||||||
|
105
Table of Contents
Financial highlights
DelawareTax-Free New York Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period. |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
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|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 11.85 | $ | 11.33 | $ | 11.61 | $ | 11.97 | $ | 11.47 | $ | 11.46 | |||||||||||||||||||||||||||||||
0.18 | 0.38 | 0.39 | 0.38 | 0.39 | 0.40 | |||||||||||||||||||||||||||||||||||||
0.28 | 0.52 | (0.28 | ) | (0.35 | ) | 0.50 | 0.01 | |||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
0.46 | 0.90 | 0.11 | 0.03 | 0.89 | 0.41 | |||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
(0.18 | ) | (0.38 | ) | (0.39 | ) | (0.39 | ) | (0.39 | ) | (0.40 | ) | |||||||||||||||||||||||||||||||
(0.06 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
(0.24 | ) | (0.38 | ) | (0.39 | ) | (0.39 | ) | (0.39 | ) | (0.40 | ) | |||||||||||||||||||||||||||||||
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$ | 12.07 | $ | 11.85 | $ | 11.33 | $ | 11.61 | $ | 11.97 | $ | 11.47 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
3.99% | 8.17% | 0.93% | 0.29% | 7.84% | 3.58% | |||||||||||||||||||||||||||||||||||||
$ | 41,910 | $ | 39,363 | $ | 32,981 | $ | 32,192 | $ | 19,929 | $ | 12,667 | |||||||||||||||||||||||||||||||
0.55% | 0.55% | 0.55% | 0.55% | 0.55% | 0.58% | |||||||||||||||||||||||||||||||||||||
0.81% | 0.82% | 0.83% | 0.78% | 0.77% | 0.82% | |||||||||||||||||||||||||||||||||||||
3.14% | 3.37% | 3.35% | 3.29% | 3.31% | 3.43% | |||||||||||||||||||||||||||||||||||||
2.88% | 3.10% | 3.07% | 3.06% | 3.09% | 3.19% | |||||||||||||||||||||||||||||||||||||
20% | 21% | 10% | 14% | 8% | 6% |
107
Table of Contents
Financial highlights
DelawareTax-Free Pennsylvania Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions
|
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
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|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 8.25 | $ | 7.93 | $ | 8.14 | $ | 8.39 | $ | 8.15 | $ | 8.16 | |||||||||||||||||||||||||||||||
0.12 | 0.28 | 0.28 | 0.28 | 0.29 | 0.29 | |||||||||||||||||||||||||||||||||||||
0.17 | 0.32 | (0.20 | ) | (0.25 | ) | 0.24 | (0.01 | ) | ||||||||||||||||||||||||||||||||||
|
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|
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|
|
|
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|
| |||||||||||||||||||||||||||||||
0.29 | 0.60 | 0.08 | 0.3 | 0.53 | 0.28 | |||||||||||||||||||||||||||||||||||||
|
|
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|
|
|
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| |||||||||||||||||||||||||||||||
(0.12 | ) | (0.28 | ) | (0.28 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | |||||||||||||||||||||||||||||||
(0.08 | ) | — | (0.01 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
|
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| |||||||||||||||||||||||||||||||
(0.20 | ) | (0.28 | ) | (0.29 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | |||||||||||||||||||||||||||||||
|
|
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| |||||||||||||||||||||||||||||||
$ | 8.34 | $ | 8.25 | $ | 7.93 | $ | 8.14 | $ | 8.39 | $ | 8.15 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|
| |||||||||||||||||||||||||||||||
3.60% | 7.72% | 0.93% | 0.48% | 6.60% | 3.45% | |||||||||||||||||||||||||||||||||||||
$ | 388,861 | $ | 376,965 | $ | 378,038 | $ | 399,001 | $ | 439,379 | $ | 441,904 | |||||||||||||||||||||||||||||||
0.83% | 0.85% | 0.88% | 0.88% | 0.88% | 0.89% | |||||||||||||||||||||||||||||||||||||
0.92% | 0.93% | 0.93% | 0.94% | 0.94% | 0.95% | |||||||||||||||||||||||||||||||||||||
3.05% | 3.49% | 3.48% | 3.51% | 3.50% | 3.51% | |||||||||||||||||||||||||||||||||||||
2.96% | 3.41% | 3.43% | 3.45% | 3.44% | 3.45% | |||||||||||||||||||||||||||||||||||||
23% | 23% | 19% | 15% | 14% | 13% | |||||||||||||||||||||||||||||||||||||
|
109
Table of Contents
Financial highlights
DelawareTax-Free Pennsylvania Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss)
|
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain
|
Total dividends and distributions
|
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
110
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| |||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
$ | 8.25 | $ | 7.93 | $ | 8.14 | $ | 8.39 | $ | 8.15 | $ | 8.16 | |||||||||||||||||||||||||||||
0.09 | 0.22 | 0.22 | 0.22 | 0.23 | 0.23 | |||||||||||||||||||||||||||||||||||
0.17 | 0.32 | (0.20 | ) | (0.25 | ) | 0.24 | (0.01 | ) | ||||||||||||||||||||||||||||||||
|
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| |||||||||||||||||||||||||||||
0.26 | 0.54 | 0.02 | (0.03 | ) | 0.47 | 0.22 | ||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||
(0.09 | ) | (0.22 | ) | (0.22 | ) | (0.22 | ) | (0.23 | ) | (0.23 | ) | |||||||||||||||||||||||||||||
(0.08 | ) | — | (0.01 | ) | — | — | — | |||||||||||||||||||||||||||||||||
|
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|
| |||||||||||||||||||||||||||||
(0.17 | ) | (0.22 | ) | (0.23 | ) | (0.22 | ) | (0.23 | ) | (0.23 | ) | |||||||||||||||||||||||||||||
|
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| |||||||||||||||||||||||||||||
$ | 8.34 | $ | 8.25 | $ | 7.93 | $ | 8.14 | $ | 8.39 | $ | 8.15 | |||||||||||||||||||||||||||||
|
|
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|
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| |||||||||||||||||||||||||||||
3.21% | 6.91% | 0.16% | (0.27% | ) | 5.79% | 2.67% | ||||||||||||||||||||||||||||||||||
$ | 23,191 | $ | 25,065 | $ | 26,376 | $ | 33,298 | $ | 36,215 | $ | 32,799 | |||||||||||||||||||||||||||||
1.59% | 1.61% | 1.64% | 1.64% | 1.64% | 1.65% | |||||||||||||||||||||||||||||||||||
1.68% | 1.69% | 1.69% | 1.70% | 1.70% | 1.71% | |||||||||||||||||||||||||||||||||||
2.29% | 2.73% | 2.72% | 2.75% | 2.74% | 2.75% | |||||||||||||||||||||||||||||||||||
2.20% | 2.65% | 2.67% | 2.69% | 2.68% | 2.69% | |||||||||||||||||||||||||||||||||||
23% | 23% | 19% | 15% | 14% | 13% | |||||||||||||||||||||||||||||||||||
|
111
Table of Contents
Financial highlights
DelawareTax-Free Pennsylvania Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income2 |
Net realized and unrealized gain (loss) |
Total from investment operations
|
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions
|
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
|
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The average shares outstanding have been applied for per share information. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
112
Table of Contents
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|
| |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | 8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
$ | 8.25 | $ | 7.92 | $ | 8.13 | $ | 8.38 | $ | 8.14 | $ | 8.16 | |||||||||||||||||||||||||||||||
0.13 | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | |||||||||||||||||||||||||||||||||||||
0.16 | 0.33 | (0.20 | ) | (0.25 | ) | 0.24 | (0.02 | ) | ||||||||||||||||||||||||||||||||||
|
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| |||||||||||||||||||||||||||||||
0.29 | 0.63 | 0.10 | 0.05 | 0.55 | 0.29 | |||||||||||||||||||||||||||||||||||||
|
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| |||||||||||||||||||||||||||||||
(0.13 | ) | (0.30 | ) | (0.30 | ) | (0.30 | ) | (0.31 | ) | (0.31 | ) | |||||||||||||||||||||||||||||||
(0.08 | ) | — | (0.01 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
|
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| |||||||||||||||||||||||||||||||
(0.21 | ) | (0.30 | ) | (0.31 | ) | (0.30 | ) | (0.31 | ) | (0.31 | ) | |||||||||||||||||||||||||||||||
|
|
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|
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|
| |||||||||||||||||||||||||||||||
$ | 8.33 | $ | 8.25 | $ | 7.92 | $ | 8.13 | $ | 8.38 | $ | 8.14 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
| |||||||||||||||||||||||||||||||
3.60% | 8.12% | 1.16% | 0.73% | 6.86% | 3.57% | |||||||||||||||||||||||||||||||||||||
$ | 53,656 | $ | 47,241 | $ | 41,427 | $ | 33,373 | $ | 26,372 | $ | 16,740 | |||||||||||||||||||||||||||||||
0.59% | 0.61% | 0.64% | 0.64% | 0.64% | 0.65% | |||||||||||||||||||||||||||||||||||||
0.68% | 0.69% | 0.69% | 0.70% | 0.70% | 0.71% | |||||||||||||||||||||||||||||||||||||
3.29% | 3.73% | 3.72% | 3.75% | 3.74% | 3.75% | |||||||||||||||||||||||||||||||||||||
3.20% | 3.65% | 3.67% | 3.69% | 3.68% | 3.69% | |||||||||||||||||||||||||||||||||||||
23% | 23% | 19% | 15% | 14% | 13% | |||||||||||||||||||||||||||||||||||||
|
113
Table of Contents
Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds | February 29, 2020 (Unaudited) |
Voyageur Insured Funds is organized as a Delaware statutory trust and offers one series: DelawareTax-Free Arizona Fund. 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, DelawareTax-Free California Fund, DelawareTax-Free Idaho Fund, and DelawareTax-Free New York Fund. Voyageur Mutual Funds II is organized as a Delaware statutory trust and offers one series: DelawareTax-Free Colorado Fund. Delaware Group® StateTax-Free Income Trust is organized as a Delaware statutory trust and offers one series: DelawareTax-Free Pennsylvania Fund. Voyageur Insured Funds, Voyageur Mutual Funds, Voyageur Mutual Funds II, and Delaware Group StateTax-Free Income Trust are each referred to as a Trust, or collectively as the Trusts. These financial statements and the related notes pertain to DelawareTax-Free Arizona Fund, DelawareTax-Free California Fund, DelawareTax-Free Colorado Fund, DelawareTax-Free Idaho Fund, DelawareTax-Free New York Fund, and DelawareTax-Free Pennsylvania Fund (each a Fund, or collectively, the Funds). Each Fund is anopen-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximumfront-end sales charge of 4.50%. Class A share purchases of $1,000,000 or more for DelawareTax-Free California Fund and DelawareTax-Free New York Fund and $250,000 or more for DelawareTax-Free Arizona Fund, DelawareTax-Free Colorado Fund, DelawareTax-Free Idaho Fund and DelawareTax-Free Pennsylvania Fund, will incur a contingent deferred sales charge (CDSC) instead of afront-end sales charge of 1.00%, 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 C shares are sold with a CDSC of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation— Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations.Open-end investment companies are valued at their published net asset value (NAV). Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.
114
Table of Contents
Federal Income Taxes— No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are“more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the six months ended Feb. 29, 2020 and for all open tax years (years ended Aug. 31, 2017–Aug. 31, 2019), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the six months ended Feb. 29, 2020, the Funds did not incur any interest or tax penalties.
Class Accounting— Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates— The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other— Expenses directly attributable to each Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on theex-dividend date.
115
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
1. Significant Accounting Policies (continued)
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Feb. 29, 2020, each Fund earned the following amounts under this arrangement:
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 | Delaware Tax-Free Pennsylvania Fund | |||||
$686 | $1,179 | $343 | $423 | $727 | $1,862 |
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Feb. 29, 2020, each Fund earned the following amounts under this arrangement:
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 | Delaware Tax-Free Pennsylvania Fund | |||||
$22 | $17 | $70 | $31 | $19 | $188 |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
Delaware Tax-Free Arizona Fund | Delaware Tax-Free California Fund | Delaware Tax-Free Colorado Fund | Delaware Tax-Free Idaho Fund | Delaware Tax-Free New York Fund | Delaware Tax-Free Pennsylvania Fund | |||||||||||||||||||
On the first $500 million | 0.500% | 0.550% | 0.550% | 0.550% | 0.550% | 0.550% | ||||||||||||||||||
On the next $500 million | 0.475% | 0.500% | 0.500% | 0.500% | 0.500% | 0.500% | ||||||||||||||||||
On the next $1.5 billion | 0.450% | 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% | 0.425% |
DMC has contractually agreed to waive all or a portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure total annual operating expenses (excluding any distribution and service(12b-1) fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations,
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litigation, conducting shareholder meetings, and liquidations), do not exceed the following percentages of each Fund’s average daily net assets from Sept. 1, 2019 through Feb. 29, 2020.* These expense waivers and reimbursements may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
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 | Delaware Tax-Free Pennsylvania Fund | |||||||||||||||||||
Operating expense limitation | ||||||||||||||||||||||||
as a percentage of average daily net assets (per annum) | 0.59% | 0.57% | 0.59% | 0.61% | 0.55% | 0.59% |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative NAV basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the six months ended Feb. 29, 2020, each Fund was charged for these services as follows:
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 | Delaware Tax-Free Pennsylvania Fund | |||||
$3,336 | $3,681 | $5,769 | $3,794 | $3,480 | $9,565 |
DIFSC is also the transfer agent and dividend disbursing agent of the Funds. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended Feb. 29, 2020, each Fund was charged for these services as follows:
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 | Delaware Tax-Free Pennsylvania Fund | |||||
$3,498 | $4,394 | $9,829 | $4,690 | $3,870 | $19,711 |
Pursuant to asub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certainsub-transfer agency services to each Fund.Sub-transfer
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
agency fees are paid by each Fund and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual12b-1 fee of 0.25% of the average daily net assets of the Class A shares (except for DelawareTax-Free Pennsylvania Fund). The Board for DelawareTax-Free Pennsylvania Fund has adopted a formula for calculating12b-1 fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All of the Fund’s Class A shareholders bear12b-1 fees at the same blended rate, currently 0.24% of average daily net assets, based on the formula described above. This method of calculating Class A12b-1 fees may be discontinued at the sole discretion of the Board. Each Fund pays 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay12b-1 fees.
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended Feb. 29, 2020, each Fund was charged for internal legal, tax, and regulatory services provided by DMC and/or its affiliates’ employees as follows:
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 | Delaware Tax-Free Pennsylvania Fund | |||||
$983 | $1,235 | $2,762 | $1,314 | $1,088 | $5,546 |
For the six months ended Feb. 29, 2020, DDLP earned commissions on sales of Class A shares for each Fund as follows:
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 | Delaware Tax-Free Pennsylvania Fund | |||||
$2,071 | $1,095 | $6,356 | $8,755 | $913 | $17,780 |
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For the six months ended Feb. 29, 2020, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. For the six months ended Feb. 29, 2020, DelawareTax-Free California Fund and DelawareTax-Free New York Fund did not receive gross CDSC commissions on redemptions for Class A and Class C shares. The amounts received were as follows:
Delaware Tax-Free Arizona Fund | Delaware Tax-Free Colorado Fund | Delaware Tax-Free Idaho Fund | Delaware Tax-Free Pennsylvania Fund | |||||
Class A | $ — | $13,880 | $— | $— | ||||
Class C | 173 | — | 58 | 70 |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by the Funds.
In addition to the management fees and other expenses of a Fund, a Fund indirectly bears the investment management fees and other expenses of the investment companies (Underlying Funds) in which it invests. The amount of these fees and expenses incurred indirectly by a Fund will vary based upon the expense and fee levels of the Underlying Funds and the number of shares that are owned of the Underlying Funds at different times.
Cross trades for the six months ended Feb. 29, 2020, were executed by the Funds pursuant to procedures adopted by the Board designed to ensure compliance with Rule17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review such transactions for compliance with the procedures adopted by the Boards. DelawareTax-Free Arizona Fund did not engage in Rule17a-7 securities purchases and/or securities sales for the six months ended Feb. 29, 2020. Pursuant to these procedures, for the six months ended Feb. 29, 2020, the following Funds engaged in Rule17a-7 securities purchases and securities sales, as follows:
Delaware Tax-Free California Fund | Delaware Tax-Free Colorado Fund | Delaware Tax-Free Idaho Fund | Delaware Tax-Free New York Fund | Delaware Tax-Free Pennsylvania Fund | ||||||||||||||||
Purchases | $3,200,422 | $3,826,881 | $1,225,613 | $2,072,973 | $4,586,976 | |||||||||||||||
Sales | 796,250 | 3,642,299 | 1,225,565 | 1,050,727 | 9,585,967 | |||||||||||||||
Net realized gain (loss) | (2,025) | — | — | — | 92,987 |
*The aggregate contractual waiver period covering this report is from Dec. 28, 2018 through Dec. 28, 2020.
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
3. Investments
For the six months ended Feb. 29, 2020, each Fund made purchases and sales of investment securities other than short-term investments as follows:
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 | Delaware Tax-Free Pennsylvania Fund | |||||||||||||||||||||||||
Purchases | $15,942,646 | $26,251,030 | $29,196,214 | $21,374,484 | $18,450,430 | $111,210,851 | ||||||||||||||||||||||||
Sales | 14,615,678 | 26,802,079 | 27,162,149 | 8,474,331 | 17,237,042 | 103,576,266 |
At Feb. 29, 2020, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At Feb. 29, 2020, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:
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 | Delaware Tax-Free Pennsylvania Fund | |||||||||||||||||||||||||
Cost of investments | $ | 76,444,237 | $ | 92,678,380 | $ | 214,475,306 | $ | 108,883,001 | $ | 84,111,927 | $ | 423,981,140 | ||||||||||||||||||
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Aggregate unrealized appreciation of investments | $ | 6,335,026 | $ | 9,393,346 | $ | 18,216,715 | $ | 7,578,161 | $ | 6,897,723 | $ | 39,221,170 | ||||||||||||||||||
Aggregate unrealized depreciation of investments | (39,150 | ) | (48,275 | ) | (110,555 | ) | (54,064 | ) | (41,633 | ) | (215,625 | ) | ||||||||||||||||||
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Net unrealized appreciation of investments | $ | 6,295,876 | $ | 9,345,071 | $ | 18,106,160 | $ | 7,524,097 | $ | 6,856,090 | $ | 39,005,545 | ||||||||||||||||||
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At Aug. 31, 2019, capital loss carryforwards available to offset future realized capital gains, are as follows:
Loss carryforward character | ||||||||||||
Short-term | Long-term | Total | ||||||||||
DelawareTax-Free Arizona Fund | $ | 95,504 | $ | 132,803 | $ | 228,307 | ||||||
DelawareTax-Free Colorado Fund | 3,090,657 | 107,513 | 3,198,170 | |||||||||
DelawareTax-Free Idaho Fund | 1,825,182 | 2,666,052 | 4,491,234 |
At Aug. 31, 2019, there were no capital loss carryforwards for DelawareTax-Free California Fund, DelawareTax-Free New York Fund, and DelawareTax-Free Pennsylvania Fund.
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US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities,open-end investment companies, futures contracts, and exchange-traded options contracts) | |
Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) | |
Level 3 – | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
3. Investments (continued)
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of Feb. 29, 2020:
Delaware Tax-Free Arizona Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 81,240,113 | |||
Short-Term Investments | 1,500,000 | ||||
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| ||||
Total Value of Securities | $ | 82,740,113 | |||
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Delaware Tax-Free California Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 101,123,451 | |||
Short-Term Investments | 900,000 | ||||
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Total Value of Securities | $ | 102,023,451 | |||
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DelawareTax-Free Colorado Fund | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Securities | ||||||||||||
Assets: | ||||||||||||
Municipal Bonds | $ | — | $ | 230,054,108 | $ | 230,054,108 | ||||||
Short-Term Investments1 | 2,027,358 | 500,000 | 2,527,358 | |||||||||
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Total Value of Securities | $ | 2,027,358 | $ | 230,554,108 | $ | 232,581,466 | ||||||
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DelawareTax-Free Idaho Fund | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Securities | ||||||||||||
Assets: | ||||||||||||
Municipal Bonds | $ | — | $ | 116,095,174 | $ | 116,095,174 | ||||||
Short-Term Investments1 | 86,924 | 225,000 | 311,924 | |||||||||
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Total Value of Securities | $ | 86,924 | $ | 116,320,174 | $ | 116,407,098 | ||||||
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Delaware Tax-Free New York Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 90,868,017 | |||
Short-Term Investments | 100,000 | ||||
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Total Value of Securities | $ | 90,968,017 | |||
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Delaware Tax-Free Pennsylvania Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 462,986,685 |
1 | Security type is valued across multiple levels. Level 1 investments representopen-end investment company investments while Level 2 investments represent matrix-priced investments. The amounts attributed to Level 1 investments and Level 2 investments represent the following percentages of the total market value of this security type for the Funds: |
Short-Term Investments | Delaware Tax-Free Colorado Fund | Delaware Tax-Free Idaho Fund | ||||||||
Level 1 | 80.22 | % | 27.87 | % | ||||||
Level 2 | 19.78 | % | 72.13 | % | ||||||
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Total | 100.00 | % | 100.00 | % | ||||||
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During the six months ended Feb. 29, 2020, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to each Fund. Each Fund’s policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to the Fund’s net assets. During the six months ended Feb. 29, 2020, there were no Level 3 investments.
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
4. Capital Shares
Transactions in capital shares were as follows:
Delaware Tax-Free Arizona Fund | Delaware Tax-Free California Fund | Delaware Tax-Free Colorado Fund | ||||||||||||||||||||||
Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 180,943 | 262,361 | 192,731 | 246,328 | 764,284 | 946,719 | ||||||||||||||||||
Class C | 11,110 | 42,564 | 48,141 | 135,650 | 48,304 | 115,864 | ||||||||||||||||||
Institutional Class | 225,442 | 589,377 | 820,676 | 2,089,874 | 1,026,755 | 1,931,423 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
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Class A | 68,958 | 139,629 | 76,132 | 123,662 | 191,510 | 430,740 | ||||||||||||||||||
Class C | 2,855 | 6,385 | 14,923 | 22,436 | 9,152 | 22,232 | ||||||||||||||||||
Institutional Class | 21,354 | 34,201 | 70,916 | 78,502 | 59,287 | 92,420 | ||||||||||||||||||
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510,662 | 1,074,517 | 1,223,519 | 2,696,452 | 2,099,292 | 3,539,398 | |||||||||||||||||||
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Shares redeemed: | ||||||||||||||||||||||||
Class A | (216,032 | ) | (735,173 | ) | (217,963 | ) | (1,431,252 | ) | (714,586 | ) | (1,685,496 | ) | ||||||||||||
Class C | (37,245 | ) | (61,785 | ) | (127,353 | ) | (319,827 | ) | (108,509 | ) | (224,664 | ) | ||||||||||||
Institutional Class | (41,008 | ) | (313,916 | ) | (599,780 | ) | (1,346,002 | ) | (340,101 | ) | (823,168 | ) | ||||||||||||
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(294,285 | ) | (1,110,874 | ) | (945,096 | ) | (3,097,081 | ) | (1,163,196 | ) | (2,733,328 | ) | |||||||||||||
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Net increase (decrease) | 216,377 | (36,357 | ) | 278,423 | (400,629 | ) | 936,096 | 806,070 | ||||||||||||||||
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Delaware Tax-Free Idaho Fund | Delaware Tax-Free New York Fund | Delaware Tax-Free Pennsylvania Fund | ||||||||||||||||||||||
Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | Six months ended 2/29/20 | Year ended 8/31/19 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 471,085 | 459,129 | 154,725 | 591,017 | 2,803,348 | 3,832,279 | ||||||||||||||||||
Class C | 58,757 | 86,983 | 30,531 | 133,092 | 273,086 | 371,898 | ||||||||||||||||||
Institutional Class | 553,205 | 1,875,734 | 457,123 | 1,449,261 | 915,917 | 2,517,108 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
| |||||||||||||||||||||||
Class A | 66,789 | 143,675 | 54,917 | 88,863 | 1,014,177 | 1,397,399 | ||||||||||||||||||
Class C | 10,795 | 30,006 | 11,406 | 20,484 | 54,993 | 81,414 | ||||||||||||||||||
Institutional Class | 46,124 | 69,543 | 63,181 | 93,585 | 135,238 | 170,595 | ||||||||||||||||||
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1,206,755 | 2,665,070 | 771,883 | 2,376,302 | 5,196,759 | 8,370,693 | |||||||||||||||||||
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Shares redeemed: | ||||||||||||||||||||||||
Class A | (359,388 | ) | (1,140,741 | ) | (190,532 | ) | (1,003,925 | ) | (2,859,691 | ) | (7,228,804 | ) | ||||||||||||
Class C | (185,358 | ) | (581,720 | ) | (168,406 | ) | (337,176 | ) | (583,725 | ) | (742,301 | ) | ||||||||||||
Institutional Class | (160,191 | ) | (828,173 | ) | (369,645 | ) | (1,133,073 | ) | (340,164 | ) | (2,187,569 | ) | ||||||||||||
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(704,937 | ) | (2,550,634 | ) | (728,583 | ) | (2,474,174 | ) | (3,783,580 | ) | (10,158,674 | ) | |||||||||||||
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Net increase (decrease) | 501,818 | 114,436 | 43,300 | (97,872 | ) | 1,413,179 | (1,787,981 | ) | ||||||||||||||||
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Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables on the previous page and the “Statements of changes in net assets.” For the six months ended Feb. 29, 2020 and the year ended Aug. 31, 2019, the Funds had the following exchange transactions:
Six months ended 2/29/20 | ||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||
Class A Shares | Class C Shares | Class A Shares | Institutional Class Shares | Value | ||||||||||||||||
DelawareTax-Free California Fund | 16,667 | — | — | 16,697 | $ | 204,878 | ||||||||||||||
DelawareTax-Free Colorado Fund | 934 | — | — | 934 | 10,622 | |||||||||||||||
DelawareTax-Free New York Fund | — | 403 | 402 | — | 4,751 | |||||||||||||||
DelawareTax-Free Pennsylvania Fund | 35,091 | 15,346 | 15,383 | 35,117 | 413,268 | |||||||||||||||
Year ended 8/31/19 | ||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||
Class A Shares | Class C Shares | Class A Shares | Institutional Class Shares | Value | ||||||||||||||||
DelawareTax-Free California Fund | 94,289 | 4,281 | — | 98,582 | $ | 1,213,599 | ||||||||||||||
DelawareTax-Free Colorado Fund | 10,452 | 5,036 | 4,754 | 10,763 | 172,380 | |||||||||||||||
DelawareTax-Free Idaho Fund | 19,800 | — | — | 19,815 | 226,175 | |||||||||||||||
DelawareTax-Free New York Fund | 6,590 | — | — | 6,591 | 73,949 | |||||||||||||||
DelawareTax-Free Pennsylvania Fund | 83,022 | 15,097 | 15,121 | 83,103 | 778,069 |
DelawareTax-Free Arizona Fund and DelawareTax-Free Idaho Fund did not have any exchange transactions for the six months ended Feb. 29, 2020. DelawareTax-Free Arizona Fund did not have any exchange transactions for the year ended Aug. 31, 2019.
5. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $220,000,000 revolving line of credit intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. On Nov. 4, 2019, the Participants
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
5. Line of Credit (continued)
entered into an amendment to the agreement for a $250,000,000 revolving line of credit (Agreement). The revolving line of credit is to be used as described below and operates in substantially the same manner as the original agreement. The line of credit available under the Agreement expires on Nov. 2, 2020.
Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum ofone-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on Nov. 4, 2019.
The Funds had no amounts outstanding as of Feb. 29, 2020, or at any time during the period then ended.
6. Geographic, Credit, and Market Risks
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
The risk that potential changes related to the use of the London interbank offered rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.
The Funds concentrate their investments in securities issued by each corresponding state’s municipalities. The Funds invest primarily in a specific state and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam whose bonds are also free of federal and individual state income taxes. The value of the Funds’ investments may be adversely affected by new legislation within the states or US territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund.
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At Feb. 29, 2020, the percentages of each Fund’s net assets insured by bond insurers are listed below and these securities have been identified on the “Schedules of investments.”
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 | Delaware Tax-Free Pennsylvania Fund | |||||||
American Capital Access | 1.20% | — | — | — | — | — | ||||||
Assured Guaranty Corporation | — | — | 0.98% | — | — | 1.08% | ||||||
Assured Guaranty Municipal Corporation | 1.45% | 1.42% | 4.38% | 4.58% | — | 2.86% | ||||||
AMBAC Assurance Corporation | — | — | — | — | 1.26% | — | ||||||
Build America Mutual Assurance | — | 0.52% | 1.06% | 5.75% | — | 0.62% | ||||||
National Public Finance Guarantee Corporation | — | 0.91% | — | — | — | — | ||||||
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2.65% | 2.85% | 6.42% | 10.33% | 1.26% | 4.56% | |||||||
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Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower thanBBB- by Standard & Poor’s Financial Services LLC (S&P), lower than Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Each Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. Each Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Each Fund may invest in 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
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Notes to financial statements | ||
Delaware Funds® by Macquarie state tax-free funds |
6. Geographic, Credit, and Market Risks (continued)
account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered“pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Board has delegated to DMC, theday-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedules of investments.”
7. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
8. Recent Accounting Pronouncements
In March 2017, the FASB issued an Accounting Standards Update (ASU), ASU2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. Management has implemented ASU2017-08 and determined that the impact of this guidance to the Fund’s net assets at the end of the period is not material.
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In August 2018, the FASB issued ASU2018-13, which changes certain fair value measurement disclosure requirements. ASU2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. ASU2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
9. Subsequent Events
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known asCOVID-19. The outbreak ofCOVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects ofCOVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance.
Management has determined that no other material events or transactions occurred subsequent to Feb. 29, 2020, that would require recognition or disclosure in the Funds’ financial statements.
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Board of trustees | ||||||
Shawn K. Lytle President and Chief Executive Officer Delaware Funds® by Macquarie Philadelphia, PA
Thomas L. Bennett Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA
Jerome D. Abernathy Managing Member Stonebrook Capital Management, LLC Jersey City, NJ | Ann D. Borowiec Former Chief Executive Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY
Joseph W. Chow Former Executive Vice President State Street Corporation Boston, MA
John A. Fry President Drexel University Philadelphia, PA | Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. New York, NY
Frances A. Sevilla-Sacasa Former Chief Executive Officer Banco Itaú International Miami, FL | Thomas K. Whitford Former Vice Chairman PNC Financial Services Group Pittsburgh, PA
Christianna Wood Chief Executive Officer and President Gore Creek Capital, Ltd. Golden, CO
Janet L. Yeomans Former Vice President and Treasurer 3M Company St. Paul, MN | |||
Affiliated officers
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David F. Connor | Daniel V. Geatens | Richard Salus | ||||
Senior Vice President, | Vice President and | Senior Vice President and | ||||
General Counsel, | Treasurer | Chief Financial Officer | ||||
and Secretary | Delaware Funds | Delaware Funds | ||||
Delaware Funds | by Macquarie | by Macquarie | ||||
by Macquarie | Philadelphia, PA | Philadelphia, PA | ||||
Philadelphia, PA |
This semiannual report is for the information of DelawareTax-Free Arizona Fund, DelawareTax-Free California Fund, DelawareTax-Free Colorado Fund, DelawareTax-Free Idaho Fund, DelawareTax-Free New York Fund, and DelawareTax-Free Pennsylvania Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on FormN-PORT. Each Fund’s FormsN-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent FormN-PORT are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s FormsN-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
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Item 2. Code of Ethics
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 period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits
(a) (1) Code of Ethics
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
VOYAGEUR MUTUAL FUNDS
SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | May 6, 2020 |
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.
SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | May 6, 2020 |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | May 6, 2020 |