UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-03850 |
Exact name of registrant as specified in charter: | Delaware Group® Tax-Free Fund |
Address of principal executive offices: | 610 Market Street |
Philadelphia, PA 19106 | |
Name and address of agent for service: | David F. Connor, Esq. |
610 Market Street | |
Philadelphia, PA 19106 | |
Registrant’s telephone number, including area code: | (800) 523-1918 |
Date of fiscal year end: | August 31 |
Date of reporting period: | August 31, 2022 |
Item 1. Reports to Stockholders
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Annual report
Fixed income mutual funds
Delaware Tax-Free USA Fund
Delaware Tax-Free USA Intermediate Fund
Delaware National High-Yield Municipal Bond Fund
August 31, 2022
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of
in the mail.
Visit delawarefunds.com/edelivery.
Experience Delaware Funds by Macquarie®
Macquarie Asset Management (MAM) is a global asset manager that aims to deliver positive impact for everyone. MAM Public Investments traces its roots to 1929 and partners with institutional and individual clients to deliver specialist active investment capabilities across global equities, fixed income, and multi-asset solutions using a conviction-based, long-term approach to investing. In the US, retail investors recognize our Delaware Funds by Macquarie family of funds as one of the oldest mutual fund families.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Manage your account online
● | Check your account balance and transactions |
● | View statements and tax forms |
● | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is a full-service asset manager offering a diverse range of products across public and private markets including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and asset finance. The Public Investments business is a part of MAM and includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
The Funds are governed by US laws and regulations.
Unless otherwise noted, views expressed herein are current as of August 31, 2022, 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.
© 2022 Macquarie Management Holdings, Inc.
Portfolio management review | |
Delaware Funds by Macquarie® national tax-free funds | August 31, 2022 (Unaudited) |
Performance preview (for the year ended August 31, 2022) | ||||
Delaware Tax-Free USA Fund (Institutional Class shares) | 1-year return | -12.48% | ||
Delaware Tax-Free USA Fund (Class A shares) | 1-year return | -12.65% | ||
Bloomberg Municipal Bond Index (benchmark) | 1-year return | -8.63% | ||
Lipper General & Insured Municipal Debt Funds Average | 1-year return | -10.24% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Fund, please see the table on page 6.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
The Lipper General & Insured Municipal Debt Funds Average compares funds that either invest primarily in municipal debt issues in the top three credit ratings or invest primarily in municipal debt issues insured as to timely payment.
Please see page 9 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Delaware Tax-Free USA Intermediate Fund (Institutional Class shares) | 1-year return | -10.17% | ||
Delaware Tax-Free USA Intermediate Fund (Class A shares) | 1-year return | -10.33% | ||
Bloomberg 3-15 Year Blend Municipal Bond Index (benchmark) | 1-year return | -7.09% | ||
Lipper Intermediate Municipal Debt Funds Average | 1-year return | -7.70% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Intermediate Fund, please see the table on page 11. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee. The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions. The Lipper Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years.
Please see page 14 for a description of the Index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Delaware National High-Yield Municipal Bond Fund (Institutional Class shares) | 1-year return | -10.22% | ||
Delaware National High-Yield Municipal Bond Fund (Class A shares) | 1-year return | -10.49% | ||
Bloomberg Municipal Bond Index (benchmark) | 1-year return | -8.63% | ||
Lipper High Yield Municipal Debt Funds Average | 1-year return | -11.00% |
Past performance does not guarantee future results.
For complete, annualized performance for Delaware National High-Yield Municipal Bond Fund, please see the table on page 16.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
The Lipper High Yield Municipal Debt Funds Average compares funds that invest at least 50% of assets in lower-rated municipal debt issues.
Please see page 19 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
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Portfolio management review
Delaware Funds by Macquarie® national tax-free funds
Investment objectives
Delaware Tax-Free USA Fund seeks as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.
Delaware Tax-Free USA Intermediate Fund seeks as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.
Delaware National High-Yield Municipal Bond Fund seeks a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.
Economic backdrop
As the fiscal year ended August 31, 2022, progressed, investors’ initial optimism about US economic growth gradually gave way to concern that new COVID-19 variants – first Delta, then Omicron – would delay the country’s emergence from the pandemic. Over time, however, as it became evident that Omicron infections were milder for many people, day-to-day concerns about COVID-19 appeared to ease, and economic and health restrictions were gradually lifted.
An ultimately more worrisome development for policymakers and investors alike, however, was the sharp rise in US inflation. Much higher energy prices, exacerbated by Russia’s February 2022 invasion of Ukraine, combined with supply chain challenges to trigger an across-the-board increase in prices. In August 2022, the US Consumer Price Index (CPI) rose an annualized 8.3%, still very high historically but an improvement from the June 2022 peak of 9.1%, which was the largest such 12-month increase in 40 years.
As the US Federal Reserve became increasingly concerned about inflation’s threat to the US economy, the central bank sought to slow the cycle of rising prices by moving aggressively to raise short-term interest rates.
The Fed initiated several such rate hikes between March and August 2022. At the end of this fiscal year, the federal funds rate stood at 2.50%, up from zero just several months earlier. In addition, as of the end of August, the Fed was widely expected to continue raising rates later in 2023.
Against this backdrop, the US economy began the Funds’ fiscal year on a strong upswing but finished it on a downward path. In the third quarter of 2021, US gross domestic product (GDP) – a measure of all goods and services produced by the nation in a year – grew by an annualized 2.3%, followed by a fourth-quarter 2021 increase of 6.9%. As economic challenges mounted, however, US GDP turned negative, contracting by 1.6% in the first quarter of 2022 and an estimated 0.6% in the year’s second quarter.
Despite the deteriorating economic environment, US employment trends continued to improve throughout most of the fiscal year. At the start of the 12-month time frame, the country’s jobless rate was 5.2%, well below the pandemic-era peak of 14.7% in April 2020. By the end of the fiscal year, the rate was 3.7%, near an all-time low.
Sources: US Bureau of Economic Analysis, US Bureau of Labor Statistics, and Bloomberg.
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Municipal bond market conditions
Overall, the municipal bond market, as measured by the Bloomberg Municipal Bond Index, returned -8.63% for the fiscal year ended August 31, 2022.
An unfavorable technical backdrop for municipal bonds weighed significantly on the asset class, especially in the first seven months of 2022, when essentially all the negative return seen in the Bloomberg Municipal Bond Index occurred. After five months of positive investment flows into municipal bond mutual funds, market conditions dramatically shifted in 2022. As rates rose sharply and investors feared that significantly higher inflation would eventually lead to even more Fed rate hikes, municipal fund inflows turned to substantial outflows, pushing down bond values.
Against this backdrop, bonds with longer maturities and higher durations (meaning more interest rate sensitivity) tended to underperform their intermediate- and shorter-dated counterparts. Meanwhile, bonds with lower-investment-grade credit ratings generally lagged higher-quality issues. High yield municipal debt (bonds with credit ratings below BBB-) also struggled, though they modestly outperformed their lower-investment-grade counterparts, perhaps due to the volatility-dampening effect of their higher income.
The following tables show municipal bond returns by maturity length and by credit quality for the fiscal year ended August 31, 2022.
Returns by maturity | ||
1 year | -1.59% | |
3 years | -3.94% | |
5 years | -5.81% | |
10 years | -7.56% | |
22+ years | -14.09% | |
Returns by credit rating | ||
AAA | -8.23% | |
AA | -8.30% | |
A | -8.93% | |
BBB | -10.61% |
Source: Bloomberg.
Maintaining a consistent strategy
For the three Funds profiled in this report, our overarching management approach remained consistent, as it does regardless of market conditions. We follow a bottom-up investment approach, meaning we depend on our team’s deep credit research to select securities on an issuer-by-issuer basis. Our strategy regularly emphasizes tax-exempt bonds that provide the Funds’ shareholders with what we believe is a favorable balance between the securities’ risk and return potential.
As we pursue this approach for the Funds, we typically maintain relatively less exposure to highly rated, lower yielding bonds. Instead, we tend to emphasize lower-rated, higher yielding bonds with what we believe is solid underlying credit, as we believe these securities tend to offer more attractive risk-reward opportunity for shareholders. Following this strategy, in Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund, we continued to favor bonds with lower-investment-grade credit ratings (A and BBB), while also maintaining a portion of each Fund’s portfolio in high yield tax-exempt debt (bonds rated below BBB-).
As of the end of the Funds’ fiscal year on August 31, 2022, approximately 43% of the net assets of Delaware Tax-Free USA Fund was invested in bonds with lower-investment-grade credit ratings, while about 36% of the net assets of Delaware Tax-Free USA Intermediate Fund was invested in these
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Portfolio management review
Delaware Funds by Macquarie® national tax-free funds
same credit tiers. Both Funds also maintained sizable allocations to high yield municipal bonds. By prospectus, both Funds may hold up to 20% of their net assets in high yield debt.
Consistent with its mandate, Delaware National High-Yield Municipal Bond Fund maintained the largest high yield exposure of the three Funds. As of August 31, 2022, about 68% of its portfolio was held in bonds with credit ratings below BBB-, including non-rated bonds.
Responding to market conditions
As municipal market conditions weakened in 2022, many mutual funds experienced net shareholder redemptions, including both Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. At various times, then, we had to sell bonds held by the Funds to generate proceeds to fund these redemptions. We were careful to sell bonds in a disciplined way, so that we could preserve the Funds’ balanced positioning as much as possible.
In Delaware National High-Yield Municipal Bond Fund, we instead experienced net shareholder inflows. Accordingly, we more often bought bonds than sold them throughout the fiscal year. Our strategy for this Fund entailed evaluating bonds for purchase on a case-by-case basis, choosing bonds that we found most attractive when we had proceeds available to invest. The charter school sector was a notable area of opportunity during the fiscal year, in our view. We have long favored this market segment for investment, and many of the bonds in this area of the market offered what we believed was their strongest risk-reward trade-off in several years.
Given the municipal bond market’s struggles in 2022, we took advantage of the opportunity to engage in tax-loss swaps in all three Funds.
Pursuing this strategy, we exchanged lower yielding bonds for higher yielding ones, finding the most value in the higher credit tiers. These swaps allowed us to take advantage of the opportunity to secure better yields for the Funds at a similar level of risk, while generating tax losses that we will be able to apply against future capital gains.
Individual performance effects
As we discussed, longer-duration bonds generally underperformed shorter-duration bonds for the fiscal year. Additionally, higher-coupon structured bonds tended to outperform. Accordingly, many of the Funds’ strongest and weakest performers over the 12-month period reflected these performance trends.
In Delaware Tax-Free USA Fund, for example, the weakest-performing bonds were for the expansion project of McCormick Place, a large Chicago convention center. As zero-coupon bonds, these securities are highly sensitive to changes in interest rates. In addition, the bonds came into the fiscal year priced at a relative high point and subsequently declined from that high, declining nearly 50% for the Fund as market conditions steadily weakened. Also weighing on performance were bonds for Stanford University (down more than 30%), whose longer maturity date and relatively low coupon made them unattractive to investors in a rising-rate environment.
Turning to Delaware Tax-Free USA Intermediate Fund, the weakest individual performer was a Southern California tobacco bond issue that declined more than 30%. As with the McCormick Place bonds, these zero-coupon bonds struggled as rates rose, while they also lost value from a relatively high price to begin the fiscal year. Another
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noteworthy detractor was an investment in Tapestry Moon. Bonds for this Pittsburgh-area senior-living facility experienced substantial and ongoing financial challenges amid the COVID-19 pandemic.
In Delaware National High-Yield Municipal Bond Fund, a bond investment in Cardinal Bay, a Texas-based system of senior-housing facilities, returned declined more than 40%, as the system has struggled financially in recent years. Queens Baseball Stadium Project bonds also detracted from performance. These bonds for Citi Field, home to the New York Mets, declined more than 25% for the 12-month period, reflecting their low coupon and relatively long maturity date.
In contrast, the strongest-performing securities in Delaware Tax-Free USA Fund were bonds for a student housing project at Macon State College (Ga.) These bonds rose more than 5%, benefiting from their relatively high coupon and short-term call date, which helped insulate the securities from market volatility. Erie County (N.Y.) tobacco-securitization bonds, which benefited from their relatively low price to begin the fiscal year, as well as their attractive yield in a challenging market environment also added value. The bonds gained 5% for the 12 months.
In Delaware Tax-Free USA Intermediate Fund, the most notable contributors were California charter school bonds for the Green Dot Public Schools (up 7%), as well as Dallas (Texas) Convention Center Hotel Development Corp. bonds (up 5%). In both cases, the bonds’ relatively high coupons and short call dates were desirable characteristics for investors.
Finally, in Delaware National High-Yield Municipal Bond Fund, bonds for the Albany Place (N.Y.) senior housing project added value, gaining 8%. As this financially challenged issuer has improved its fiscal position and made progress with its operations, investors found the bonds more attractive. Another contributor was the Fund’s investment in Fresno County (Calif.) tobacco bonds (up close to 8%), which benefited from what we viewed as their attractive yield and relatively attractive price coming into this fiscal year.
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Performance summaries | |
Delaware Tax-Free USA Fund | August 31, 2022 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
Fund and benchmark performance1,2 | Average annual total returns through August 31, 2022 | |||||||
1 year | 5 year | 10 year | Lifetime | |||||
Class A (Est. January 11, 1984) | ||||||||
Excluding sales charge | -12.65% | +1.60% | +2.37% | +5.91% | ||||
Including sales charge | -16.57% | +0.68% | +1.90% | +5.78% | ||||
Class C (Est. November 29, 1995) | ||||||||
Excluding sales charge | -13.31% | +0.84% | +1.60% | +3.26% | ||||
Including sales charge | -14.15% | +0.84% | +1.60% | +3.26% | ||||
Institutional Class (Est. December 31, 2008) | ||||||||
Excluding sales charge | -12.48% | +1.85% | +2.62% | +4.77% | ||||
Including sales charge | -12.48% | +1.85% | +2.62% | +4.77% | ||||
Bloomberg Municipal Bond Index | -8.63% | +1.28% | +2.25% | +3.89%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table on page 8. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1 fee of 0.25% of average daily net assets. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All Class A shares currently bear 12b-1 fees at the same rate, the blended rate, currently 0.25% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
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Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult to obtain precise valuations of the high yield securities.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
7
Performance summaries
Delaware Tax-Free USA Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
Fund expense ratios | Class A | Class C | Institutional Class | ||||
Total annual operating expenses (without fee waivers) | 0.91% | 1.66% | 0.66% | ||||
Net expenses (including fee waivers, if any) | 0.80% | 1.55% | 0.55% | ||||
Type of waiver | Contractual | Contractual | Contractual |
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Performance of a $10,000 investment1
For the period August 31, 2012 through August 31, 2022
Starting value | Ending value | |||||||
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$10,000 | $12,947 | ||||||
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$10,000 | $12,493 | ||||||
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$9,550 | $12,073 |
1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2012, and includes the effect of a 4.50% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 8. Please note additional details on pages 6 through 10.
The graph also assumes $10,000 invested in the Bloomberg Municipal Bond Index as of August 31, 2012. The Bloomberg Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
The US Consumer Price Index (CPI) is a measure of inflation that is calculated by the US Department of Labor, representing changes in prices of all goods and services purchased for consumption by urban households
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
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Performance summaries
Delaware Tax-Free USA Fund
Nasdaq symbols | CUSIPs | |||
Class A | DMTFX | 245909106 | ||
Class C | DUSCX | 245909700 | ||
Institutional Class | DTFIX | 24610H104 |
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Performance summaries | |
Delaware Tax-Free USA Intermediate Fund | August 31, 2022 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
Fund and benchmark performance1,2 | Average annual total returns through August 31, 2022 | |||||||
1 year | 5 year | 10 year | Lifetime | |||||
Class A (Est. January 7, 1993) | ||||||||
Excluding sales charge | -10.33% | +1.10% | +1.71% | +4.14% | ||||
Including sales charge | -12.81% | +0.54% | +1.42% | +4.04% | ||||
Class C (Est. November 29, 1995) | ||||||||
Excluding sales charge | -11.04% | +0.25% | +0.85% | +2.95% | ||||
Including sales charge | -11.91% | +0.25% | +0.85% | +2.95% | ||||
Institutional Class (Est. December 31, 2008) | ||||||||
Excluding sales charge | -10.17% | +1.26% | +1.86% | +3.41% | ||||
Including sales charge | -10.17% | +1.26% | +1.86% | +3.41% | ||||
Bloomberg 3–15 Year Blend Municipal Bond Index | -7.09% | +1.32% | +2.13% | +3.45%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table on page 13. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 2.75%, and have an annual 12b-1 fee of 0.25% of average daily net assets. This fee was contractually limited to 0.15% of average daily net assets from December 4, 2020 through December 29, 2022.* Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
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Performance summaries
Delaware Tax-Free USA Intermediate Fund
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult to obtain precise valuations of the high yield securities.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
12
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios.
Fund expense ratios | Class A | Class C | Institutional Class | ||||
Total annual operating expenses (without fee waivers) | 0.88% | 1.63% | 0.63% | ||||
Net expenses (including fee waivers, if any) | 0.75% | 1.50% | 0.50% | ||||
Type of waiver | Contractual | Contractual | Contractual |
13
Performance summaries
Delaware Tax-Free USA Intermediate Fund
Performance of a $10,000 investment1
For the period August 31, 2012 through August 31, 2022
Starting value | Ending value | |||||||
![]() |
$10,000 | $12,344 | ||||||
![]() |
$10,000 | $12,021 | ||||||
![]() |
$9,725 | $11,518 |
1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2012, and includes the effect of a 2.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 13. Please note additional details on pages 11 through 15.
The graph also assumes $10,000 invested in the Bloomberg 3–15 Year Blend Municipal Bond Index as of August 31, 2012. The Bloomberg 3–15 Year Blend Municipal Bond Index measures the total return performance of investment grade, US tax-exempt bonds with maturities from 2 to 17 years.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
14
Nasdaq symbols | CUSIPs | |||
Class A | DMUSX | 245909304 | ||
Class C | DUICX | 245909882 | ||
Institutional Class | DUSIX | 24610H203 |
15
Performance summaries | |
Delaware National High-Yield Municipal Bond Fund | August 31, 2022 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.
Fund and benchmark performance1,2 | Average annual total returns through August 31, 2022 | |||||||
1 year | 5 year | 10 year | Lifetime | |||||
Class A (Est. September 22, 1986) | ||||||||
Excluding sales charge | -10.49% | +2.76% | +3.71% | +5.80% | ||||
Including sales charge | -14.53% | +1.81% | +3.23% | +5.66% | ||||
Class C (Est. May 26, 1997) | ||||||||
Excluding sales charge | -11.18% | +1.99% | +2.93% | +4.10% | ||||
Including sales charge | -12.04% | +1.99% | +2.93% | +4.10% | ||||
Institutional Class (Est. December 31, 2008) | ||||||||
Excluding sales charge | -10.22% | +3.02% | +3.97% | +7.17% | ||||
Including sales charge | -10.22% | +3.02% | +3.97% | +7.17% | ||||
Bloomberg Municipal Bond Index | -8.63% | +1.28% | +2.25% | +3.89%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Fund’s Institutional Class inception date.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table on page 18. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service (12b-1) fee.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual 12b-1 fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to an annual 12b-1 fee of 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments
16
on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult to obtain precise valuations of the high yield securities.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
17
Performance summaries
Delaware National High-Yield Municipal Bond Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements. Please see the “Financial highlights” section in this report for the most recent expense ratios..
Fund expense ratios | Class A | Class C | Institutional Class | ||||
Total annual operating expenses (without fee waivers) | 0.88% | 1.63% | 0.63% | ||||
Net expenses (including fee waivers, if any) | 0.85% | 1.60% | 0.60% | ||||
Type of waiver | Contractual | Contractual | Contractual |
18
Performance of a $10,000 investment1
For the period August 31, 2012 through August 31, 2022
Starting value | Ending value | |||||||
![]() |
$10,000 | $14,765 | ||||||
![]() |
$9,550 | $13,745 | ||||||
![]() |
$10,000 | $12,493 |
1The “Performance of a $10,000 investment” graph assumes $10,000 invested in Institutional Class and Class A shares of the Fund on August 31, 2012, and includes the effect of a 4.50% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Expenses are listed in the “Fund expense ratios” table on page 18. Please note additional details on pages 16 through 20.
The graph also assumes $10,000 invested in the Bloomberg Municipal Bond Index as of August 31, 2012. The Bloomberg Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.
The US Consumer Price Index (CPI) is a measure of inflation that is calculated by the US Department of Labor, representing changes in prices of all goods and services purchased for consumption by urban households.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
19
Performance summaries
Delaware National High-Yield Municipal Bond Fund
Nasdaq symbols | CUSIPs | |||
Class A | CXHYX | 928928241 | ||
Class C | DVHCX | 928928225 | ||
Institutional Class | DVHIX | 24610H302 |
20
For the six-month period from March 1, 2022 to August 31, 2022 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from March 1, 2022 to August 31, 2022.
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.
21
Disclosure of Fund expenses
For the six-month period from March 1, 2022 to August 31, 2022 (Unaudited)
Delaware Tax-Free USA Fund
Expense analysis of an investment of $1,000
Beginning Account Value 3/1/22 | Ending Account Value 8/31/22 | Annualized Expense Ratio | Expenses Paid During Period 3/1/22 to 8/31/22* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $907.90 | 0.79% | $3.80 | ||||||||||
Class C | 1,000.00 | 903.70 | 1.54% | 7.39 | ||||||||||
Institutional Class | 1,000.00 | 908.20 | 0.54% | 2.60 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $1,000.00 | $1,021.22 | 0.79% | $4.02 | ||||||||||
Class C | 1,000.00 | 1,017.44 | 1.54% | 7.83 | ||||||||||
Institutional Class | 1,000.00 | 1,022.48 | 0.54% | 2.75 |
Delaware Tax-Free USA Intermediate Fund
Expense analysis of an investment
of $1,000
Beginning Account Value 3/1/22 | Ending Account Value 8/31/22 | Annualized Expense Ratio | Expenses Paid During Period 3/1/22 to 8/31/22* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $929.30 | 0.74% | $3.60 | ||||||||||
Class C | 1,000.00 | 925.70 | 1.50% | 7.28 | ||||||||||
Institutional Class | 1,000.00 | 930.40 | 0.50% | 2.43 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $1,000.00 | $1,021.48 | 0.74% | $3.77 | ||||||||||
Class C | 1,000.00 | 1,017.64 | 1.50% | 7.63 | ||||||||||
Institutional Class | 1,000.00 | 1,022.68 | 0.50% | 2.55 |
22
Delaware National High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
Beginning Account Value 3/1/22 | Ending Account Value 8/31/22 | Annualized Expense Ratio | Expenses Paid During Period 3/1/22 to 8/31/22* | |||||||||||
Actual Fund return† | ||||||||||||||
Class A | $1,000.00 | $917.50 | 0.85% | $4.11 | ||||||||||
Class C | 1,000.00 | 914.40 | 1.60% | 7.72 | ||||||||||
Institutional Class | 1,000.00 | 919.60 | 0.60% | 2.90 | ||||||||||
Hypothetical 5% return (5% return before expenses) | ||||||||||||||
Class A | $1,000.00 | $1,020.92 | 0.85% | $4.33 | ||||||||||
Class C | 1,000.00 | 1,017.14 | 1.60% | 8.13 | ||||||||||
Institutional Class | 1,000.00 | 1,022.18 | 0.60% | 3.06 |
*“Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
†Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns.
23
Security type / sector / state / territory allocations | |
Delaware Tax-Free USA Fund | As of August 31, 2022 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 95.99% | |||
Corporate Revenue Bonds | 12.58% | |||
Education Revenue Bonds | 5.24% | |||
Electric Revenue Bonds | 3.42% | |||
Healthcare Revenue Bonds | 12.50% | |||
Lease Revenue Bonds | 7.18% | |||
Local General Obligation Bonds | 4.27% | |||
Pre-Refunded/Escrowed to Maturity Bonds | 1.23% | |||
Resource Recovery Revenue Bond | 0.14% | |||
Special Tax Revenue Bonds | 19.04% | |||
State General Obligation Bonds | 12.99% | |||
Transportation Revenue Bonds | 16.21% | |||
Water & Sewer Revenue Bonds | 1.19% | |||
Short-Term Investments | 3.07% | |||
Total Value of Securities | 99.06% | |||
Receivables and Other Assets Net of Liabilities | 0.94% | |||
Total Net Assets | 100.00% |
*As of the date of this report, Delaware Tax-Free USA Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Alabama | 1.50% | |||
Arizona | 3.47% | |||
California | 12.46% | |||
Colorado | 3.35% | |||
Connecticut | 0.78% | |||
District of Columbia | 0.59% | |||
Florida | 3.81% | |||
Georgia | 1.70% | |||
Guam | 0.98% | |||
Idaho | 0.29% | |||
Illinois | 10.62% | |||
Indiana | 0.34% | |||
Iowa | 0.62% | |||
Kansas | 0.26% | |||
Kentucky | 0.54% | |||
Louisiana | 0.16% | |||
Maine | 0.50% |
24
State / territory | Percentage of net assets | |||
Maryland | 0.92% | |||
Massachusetts | 0.88% | |||
Michigan | 0.49% | |||
Minnesota | 0.49% | |||
Mississippi | 0.69% | |||
Missouri | 0.28% | |||
Nebraska | 0.42% | |||
New Jersey | 2.72% | |||
New York | 11.49% | |||
North Carolina | 1.89% | |||
Ohio | 2.06% | |||
Oregon | 0.64% | |||
Pennsylvania | 2.63% | |||
Puerto Rico | 17.75% | |||
Rhode Island | 0.10% | |||
Tennessee | 0.44% | |||
Texas | 6.89% | |||
US Virgin Islands | 0.71% | |||
Utah | 1.00% | |||
Virginia | 2.33% | |||
Washington | 1.77% | |||
Wisconsin | 0.50% | |||
Total Value of Securities | 99.06% |
25
Security type / sector / state / territory allocations | |
Delaware Tax-Free USA Intermediate Fund | As of August 31, 2022 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 96.48% | |||
Corporate Revenue Bonds | 12.80% | |||
Education Revenue Bonds | 5.71% | |||
Electric Revenue Bonds | 5.80% | |||
Healthcare Revenue Bonds | 7.98% | |||
Lease Revenue Bonds | 8.24% | |||
Local General Obligation Bonds | 3.64% | |||
Pre-Refunded/Escrowed to Maturity Bonds | 3.96% | |||
Special Tax Revenue Bonds | 15.55% | |||
State General Obligation Bonds | 15.55% | |||
Transportation Revenue Bonds | 15.07% | |||
Water & Sewer Revenue Bonds | 2.18% | |||
Short-Term Investments | 2.83% | |||
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, Delaware Tax-Free USA Intermediate Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory | Percentage of net assets | |||
Alabama | 0.92% | |||
Arizona | 6.40% | |||
California | 12.06% | |||
Colorado | 3.08% | |||
Connecticut | 0.65% | |||
District of Columbia | 0.70% | |||
Florida | 4.48% | |||
Georgia | 2.05% | |||
Guam | 0.73% | |||
Hawaii | 0.30% | |||
Idaho | 0.67% | |||
Illinois | 9.33% | |||
Iowa | 0.54% | |||
Kansas | 0.09% | |||
Kentucky | 0.47% | |||
Louisiana | 1.28% | |||
Maine | 0.26% | |||
Maryland | 0.66% |
26
State / territory | Percentage of net assets | |||
Massachusetts | 2.23% | |||
Michigan | 1.21% | |||
Minnesota | 0.33% | |||
Mississippi | 0.21% | |||
Missouri | 0.72% | |||
Montana | 0.04% | |||
Nebraska | 0.03% | |||
New Hampshire | 0.19% | |||
New Jersey | 4.96% | |||
New York | 16.11% | |||
Ohio | 1.27% | |||
Oklahoma | 0.74% | |||
Oregon | 0.76% | |||
Pennsylvania | 3.49% | |||
Puerto Rico | 11.79% | |||
South Carolina | 0.35% | |||
Tennessee | 0.13% | |||
Texas | 3.63% | |||
US Virgin Islands | 0.17% | |||
Utah | 2.00% | |||
Virginia | 2.92% | |||
Washington | 0.87% | |||
Wisconsin | 0.49% | |||
Total Value of Securities | 99.31% |
27
Security type / sector / state / territory allocations | |
Delaware National High-Yield Municipal Bond Fund | As of August 31, 2022 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
Security type / sector | Percentage of net assets | |||
Municipal Bonds* | 97.86% | |||
Corporate Revenue Bonds | 22.87% | |||
Education Revenue Bonds | 15.38% | |||
Electric Revenue Bonds | 4.02% | |||
Healthcare Revenue Bonds | 16.35% | |||
Housing Revenue Bond | 0.04% | |||
Lease Revenue Bonds | 2.64% | |||
Local General Obligation Bonds | 2.88% | |||
Pre-Refunded/Escrowed to Maturity Bonds | 2.30% | |||
Resource Recovery Revenue Bonds | 0.59% | |||
Special Tax Revenue Bonds | 13.31% | |||
State General Obligation Bonds | 11.25% | |||
Transportation Revenue Bonds | 3.25% | |||
Water & Sewer Revenue Bonds | 2.98% | |||
Short-Term Investments | 1.43% | |||
Total Value of Securities | 99.29% | |||
Receivables and Other Assets Net of Liabilities | 0.71% | |||
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 | 3.17% | |||
Arizona | 5.86% | |||
Arkansas | 0.11% | |||
California | 10.08% | |||
Colorado | 1.46% | |||
Delaware | 0.06% | |||
District of Columbia | 1.14% | |||
Florida | 5.04% | |||
Georgia | 1.08% | |||
Guam | 0.80% | |||
Hawaii | 0.17% | |||
Idaho | 0.77% | |||
Illinois | 6.09% | |||
Indiana | 0.57% | |||
Iowa | 0.53% | |||
Kansas | 0.23% |
28
State / territory | Percentage of net assets | |||
Kentucky | 0.47% | |||
Louisiana | 1.33% | |||
Maine | 0.48% | |||
Maryland | 0.43% | |||
Massachusetts | 1.18% | |||
Michigan | 1.10% | |||
Minnesota | 0.68% | |||
Mississippi | 0.32% | |||
Missouri | 1.25% | |||
Montana | 0.07% | |||
Nevada | 0.43% | |||
New Hampshire | 0.23% | |||
New Jersey | 2.42% | |||
New Mexico | 0.26% | |||
New York | 7.50% | |||
North Carolina | 1.41% | |||
Ohio | 4.68% | |||
Oklahoma | 0.11% | |||
Oregon | 0.30% | |||
Pennsylvania | 3.11% | |||
Puerto Rico | 17.85% | |||
South Carolina | 0.50% | |||
Tennessee | 0.35% | |||
Texas | 6.23% | |||
US Virgin Islands | 0.15% | |||
Utah | 0.57% | |||
Virginia | 4.70% | |||
Washington | 1.46% | |||
West Virginia | 0.14% | |||
Wisconsin | 2.42% | |||
Total Value of Securities | 99.29% |
29
Schedules of investments | |
Delaware Tax-Free USA Fund | August 31, 2022 |
Principal amount° | Value (US $) | ||||||
Municipal Bonds — 95.99% | |||||||
Corporate Revenue Bonds — 12.58% | |||||||
Arizona Industrial Development Authority Revenue (Legacy Cares, Inc. Project) Series A 144A 7.75% 7/1/50 # | 6,400,000 | $ | 6,815,424 | ||||
Buckeye, Ohio Tobacco Settlement Financing Authority (Senior) Series A-2 4.00% 6/1/48 | 8,860,000 | 7,941,307 | |||||
Series B-2 5.00% 6/1/55 | 4,000,000 | 3,809,880 | |||||
Central Plains, Nebraska Energy Project (Project No. 3) Series A 5.00% 9/1/31 | 2,050,000 | 2,210,351 | |||||
Series A 5.00% 9/1/35 | 1,525,000 | 1,627,846 | |||||
Erie, New York Tobacco Asset Securitization (Capital Appreciation-Asset-Backed) Series A 144A 1.456% 6/1/60 #, ^ | 65,340,000 | 3,743,982 | |||||
Finance Authority of Maine Revenue (Go Lab Madison, LLC Project) 144A 8.00% 12/1/51 (AMT) # | 5,660,000 | 4,560,828 | |||||
Florida Development Finance Surface Transportation Facilities Revenue (Brightline Passenger Rail Project) Series B 144A 7.375% 1/1/49 (AMT) # | 7,075,000 | 6,749,055 | |||||
(Virgin Trains USA Passenger Rail Project) Series A 144A 6.50% 1/1/49 (AMT) #, • | 2,555,000 | 2,320,323 | |||||
George L Smith II Georgia World Congress Center Authority (Convention Center Hotel 1st Tier) Series A 4.00% 1/1/54 | 10,215,000 | 8,774,379 | |||||
Golden State Tobacco Securitization Settlement Revenue (Capital Appreciation) Series B-2 1.089% 6/1/66 ^ | 15,370,000 | 1,817,656 | |||||
Hoover, Alabama Industrial Development Board (United States Steel Corporation Project) 5.75% 10/1/49 (AMT) | 3,825,000 | 3,982,552 | |||||
Inland, California Empire Tobacco Securitization (Capital Appreciation-Turbo-Asset-Backed) Series E 144A 0.93% 6/1/57 #, ^ | 122,985,000 | 7,003,996 | |||||
Series F 144A 1.347% 6/1/57 #, ^ | 80,485,000 | 3,840,744 | |||||
Iowa Finance Authority (Iowa Fertilizer Company Project) 5.00% 12/1/50 • | 2,355,000 | 2,415,618 |
30
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Iowa Finance Authority (Iowa Fertilizer Company Project) 5.00% 12/1/50 | 3,230,000 | $ | 3,273,702 | ||||
Kentucky Public Energy Authority Series A-1 4.00% 8/1/52 • | 5,000,000 | 4,961,900 | |||||
Lower Alabama Gas District | |||||||
Series A 5.00% 9/1/34 | 3,440,000 | 3,674,161 | |||||
Series A 5.00% 9/1/46 | 2,265,000 | 2,365,203 | |||||
Michigan Finance Authority Revenue Series B-1 5.00% 6/1/49 | 575,000 | 587,823 | |||||
M-S-R Energy Authority, California Gas Revenue | |||||||
Series A 6.125% 11/1/29 | 1,360,000 | 1,510,212 | |||||
Series B 6.50% 11/1/39 | 4,015,000 | 4,851,164 | |||||
Series C 6.50% 11/1/39 | 1,905,000 | 2,301,735 | |||||
New York Transportation Development Corporation Special Facilities Revenue (Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) 5.00% 1/1/34 (AMT) | 2,290,000 | 2,362,295 | |||||
Public Authority for Colorado Energy Natural Gas Revenue 6.50% 11/15/38 | 4,745,000 | 5,789,991 | |||||
Public Finance Authority, Wisconsin (Grand Hyatt San Antonio Hotel Acquisition Project) Series A 5.00% 2/1/62 | 2,975,000 | 3,055,087 | |||||
Salt Verde, Arizona Financial Senior Gas Revenue 5.00% 12/1/37 | 1,440,000 | 1,520,568 | |||||
Shoals, Indiana (National Gypsum Co. Project) 7.25% 11/1/43 (AMT) | 1,575,000 | 1,609,949 | |||||
Suffolk Tobacco Asset Securitization Series A-2 4.00% 6/1/50 | 2,000,000 | 1,809,960 | |||||
Tobacco Securitization Authority of Southern California (Capital Appreciation-2nd Subordinate Lien) Series C 0.585% 6/1/46 ^ | 13,510,000 | 2,130,932 | |||||
(Capital Appreciation-3rd Subordinate Lien) Series D 0.382% 6/1/46 ^ | 2,255,000 | 277,478 |
31
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Tuscaloosa County, Alabama Industrial Development Authority (Hunt Refining Project) Series A 144A 5.25% 5/1/44 # | 3,955,000 | $ | 3,620,011 | ||||
Valparaiso, Indiana (Pratt Paper, LLC Project) 7.00% 1/1/44 (AMT) | 1,360,000 | 1,414,767 | |||||
114,730,879 | |||||||
Education Revenue Bonds — 5.24% | |||||||
Arizona Industrial Development Authority Revenue (GreatHearts Arizona Projects) Series A 2.25% 7/1/46 | 1,295,000 | 852,797 | |||||
Series A 2.375% 7/1/52 | 1,295,000 | 817,119 | |||||
(Leman Academy of Excellence Projects) Series A 4.50% 7/1/54 | 2,240,000 | 1,986,611 | |||||
Bibb County, Georgia Development Authority Revenue (Macon State College Student Housing Project) Series A 5.75% 7/1/40 (AGM) | 1,905,000 | 1,908,600 | |||||
California Community College Financing Authority Student Housing Revenue (Napa Valley College Project) Series A 144A 5.75% 7/1/60 # | 5,000,000 | 4,806,200 | |||||
California Educational Facilities Authority Revenue (Loma Linda University) Series A 5.00% 4/1/47 | 760,000 | 801,169 | |||||
(Stanford University) | |||||||
Series T-1 5.00% 3/15/39 | 6,110,000 | 7,189,148 | |||||
Series V-1 5.00% 5/1/49 | 1,145,000 | 1,358,394 | |||||
Series V-2 2.25% 4/1/51 | 1,830,000 | 1,158,134 | |||||
Camden, New Jersey County Improvement Authority (Camden Prep High School Project) | |||||||
144A 5.00% 7/15/52 # | 865,000 | 855,260 | |||||
144A 5.00% 7/15/62 # | 520,000 | 496,408 | |||||
District of Columbia Revenue 5.00% 6/1/50 | 760,000 | 758,427 | |||||
(KIPP DC Issue) | |||||||
4.00% 7/1/44 | 380,000 | 346,032 | |||||
4.00% 7/1/49 | 610,000 | 542,454 |
32
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Florida Development Finance Surface Transportation Facilities Revenue (Mater Academy Projects) Series A 4.00% 6/15/52 | 1,535,000 | $ | 1,314,666 | ||||
Idaho Housing & Finance Association (Sage International School of Boise Project) Series A 4.00% 5/1/50 | 425,000 | 408,234 | |||||
Illinois Finance Authority Revenue (University of Illinois at Chicago Project) | |||||||
Series A 5.00% 2/15/47 | 1,415,000 | 1,359,022 | |||||
Series A 5.00% 2/15/50 | 415,000 | 395,931 | |||||
New Jersey Economic Development Authority (Provident Group - Montclair State University) 5.00% 6/1/42 (AGM) | 955,000 | 1,013,570 | |||||
Rhode Island Health and Educational Building Revenue (University of Rhode Island) Series B 5.25% 9/15/29 (AGC) | 945,000 | 946,304 | |||||
Town of Davie, Florida (Nova Southeastern University Project) 5.00% 4/1/38 | 2,290,000 | 2,399,760 | |||||
University of Texas System Board of Regents Series B 5.00% 8/15/49 | 13,670,000 | 16,081,115 | |||||
47,795,355 | |||||||
Electric Revenue Bonds — 3.42% | |||||||
California Community Choice Financing Authority (Clean Energy Project) Series B-1 4.00% 2/1/52 • | 195,000 | 196,843 | |||||
Electric and Gas Systems Revenue San Antonio, Texas 5.25% 2/1/24 | 1,905,000 | 1,980,000 | |||||
Guam Power Authority Revenue (Tax-Exempt Forward Delivery) | |||||||
Series A 5.00% 10/1/41 | 3,830,000 | 4,017,057 | |||||
Series A 5.00% 10/1/42 | 3,265,000 | 3,414,243 | |||||
Long Island, New York Power Authority Electric System Revenue 5.00% 9/1/47 | 1,235,000 | 1,324,365 | |||||
Series B 5.00% 9/1/41 | 2,290,000 | 2,458,109 | |||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series A 5.00% 7/1/42 ‡ | 3,665,000 | 2,977,812 | |||||
Series A 5.05% 7/1/42 ‡ | 100,000 | 81,000 |
33
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Electric Revenue Bonds (continued) | |||||||
Puerto Rico Electric Power Authority Revenue | |||||||
Series A 6.75% 7/1/36 ‡ | 1,725,000 | $ | 1,457,625 | ||||
Series AAA 5.25% 7/1/25 ‡ | 60,000 | 48,750 | |||||
Series CCC 5.25% 7/1/27 ‡ | 2,005,000 | 1,629,063 | |||||
Series TT 5.00% 7/1/32 ‡ | 2,705,000 | 2,197,812 | |||||
Series WW 5.25% 7/1/33 ‡ | 2,485,000 | 2,019,063 | |||||
Series XX 4.75% 7/1/26 ‡ | 205,000 | 165,794 | |||||
Series XX 5.25% 7/1/40 ‡ | 3,165,000 | 2,571,562 | |||||
Series ZZ 4.75% 7/1/27 ‡ | 160,000 | 129,400 | |||||
Series ZZ 5.25% 7/1/24 ‡ | 80,000 | 65,000 | |||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue (Salt River Project Electric System) Series A 5.00% 1/1/30 | 4,000,000 | 4,481,240 | |||||
31,214,738 | |||||||
Healthcare Revenue Bonds — 12.50% | |||||||
Alachua County, Florida Health Facilities Authority (Oak Hammock at the University of Florida, Inc. Project) 4.00% 10/1/46 | 1,750,000 | 1,497,738 | |||||
Allegheny County, Pennsylvania Hospital Development Authority Revenue (Allegheny Health Network Obligated Group Issue) Series A 5.00% 4/1/47 | 1,410,000 | 1,449,818 | |||||
Apple Valley Senior Living Revenue (Minnesota Senior Living LLC Project) | |||||||
Series B 5.00% 1/1/47 | 1,815,000 | 1,124,955 | |||||
Series D 7.25% 1/1/52 | 1,980,000 | 1,303,949 | |||||
Arizona Industrial Development Authority Revenue (Great Lakes Senior Living Communities LLC Project 2nd Tier) Series B 5.00% 1/1/49 | 300,000 | 190,233 | |||||
(Great Lakes Senior Living Communities LLC Project 4th Tier) Series D-2 144A 7.75% 1/1/54 # | 225,000 | 145,726 | |||||
(Phoenix Children’s Hospital) Series A 4.00% 2/1/50 | 460,000 | 420,348 | |||||
California Health Facilities Financing Authority Revenue (CommonSpirit Health) | |||||||
Series A 4.00% 4/1/44 | 3,510,000 | 3,293,995 | |||||
Series A 4.00% 4/1/49 | 5,000,000 | 4,598,050 |
34
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
California Health Facilities Financing Authority Revenue (Kaiser Permanente) Series A-2 5.00% 11/1/47 | 21,265,000 | $ | 24,204,673 | ||||
California Municipal Finance Authority Revenue (Community Medical Centers) Series A 5.00% 2/1/42 | 2,025,000 | 2,134,411 | |||||
Colorado Health Facilities Authority Revenue (AdventHealth Obligated Group) Series A 4.00% 11/15/46 | 4,310,000 | 4,078,639 | |||||
(American Baptist) 8.00% 8/1/43 | 1,660,000 | 1,701,517 | |||||
(CommonSpirit Health) | |||||||
Series A-1 4.00% 8/1/37 | 700,000 | 677,131 | |||||
Series A-2 4.00% 8/1/49 | 2,485,000 | 2,258,716 | |||||
Series A-2 5.00% 8/1/44 | 2,290,000 | 2,368,799 | |||||
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | 1,430,000 | 1,457,513 | |||||
Cuyahoga County, Ohio (The Metro Health System) | |||||||
5.25% 2/15/47 | 1,710,000 | 1,760,992 | |||||
5.50% 2/15/57 | 2,290,000 | 2,371,753 | |||||
Glendale, Arizona Industrial Development Authority Revenue (Royal Oaks Inspirata Pointe Project) Series A 5.00% 5/15/56 | 1,905,000 | 1,798,415 | |||||
Henrico County, Virginia Economic Development Authority (Westminster Canterbury Richmond) Series A 5.00% 10/1/52 | 1,130,000 | 1,181,562 | |||||
Illinois Finance Authority Revenue (NorthShore - Edward-Elmhurst Health Credit Group) | |||||||
Series A 5.00% 8/15/47 | 3,510,000 | 3,735,623 | |||||
Series A 5.00% 8/15/51 | 3,265,000 | 3,453,031 | |||||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue (The Glen Retirement System Project) Series A 5.00% 1/1/49 | 1,905,000 | 1,440,237 | |||||
Maricopa County, Arizona Industrial Development Authority Senior Living Facility Revenue (Christian Care Surprise, Inc. Project) 144A 6.00% 1/1/48 # | 915,000 | 686,726 |
35
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Maryland Health & Higher Educational Facilities Authority Revenue (Adventist Healthcare Obligated) Series A 5.50% 1/1/46 | 1,530,000 | $ | 1,602,308 | ||||
Miami-Dade County, Florida Health Facilities Authority Revenue (Nicklaus Children’s Hospital Project) 5.00% 8/1/42 | 1,150,000 | 1,197,553 | |||||
Montgomery County, Pennsylvania Higher Education and Health Authority (Thomas Jefferson University) Series B 4.00% 5/1/52 | 4,950,000 | 4,552,267 | |||||
Montgomery County, Pennsylvania Industrial Development Authority Revenue (Foulkeways At Gwynedd Project) 5.00% 12/1/46 | 715,000 | 725,074 | |||||
Moon, Pennsylvania Industrial Development Authority (Baptist Homes Society Obligation) 6.125% 7/1/50 | 1,725,000 | 1,590,243 | |||||
New Hope, Texas Cultural Education Facilities Finance (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project) Series A1 5.00% 7/1/46 ‡ | 95,000 | 70,300 | |||||
(Legacy Midtown Park Project) Series A 5.50% 7/1/54 | 1,725,000 | 1,463,697 | |||||
New York State Dormitory Authority (Northwell Health Obligated Group) Series A 5.00% 5/1/52 | 3,000,000 | 3,120,330 | |||||
(Orange Regional Medical Center) | |||||||
144A 5.00% 12/1/34 # | 300,000 | 303,789 | |||||
144A 5.00% 12/1/35 # | 945,000 | 954,280 | |||||
144A 5.00% 12/1/37 # | 695,000 | 699,066 | |||||
Norfolk Economic Development Authority Revenue, Virginia (Sentara Healthcare) Series B 5.00% 11/1/43 | 760,000 | 762,774 | |||||
Ohio State Hospital Facilities Revenue (Cleveland Clinic Health System Obligated Group) Series B 4.00% 1/1/42 | 2,000,000 | 1,949,300 | |||||
Orange County, New York Funding Corporation Assisted Living Residence Revenue 6.50% 1/1/46 | 2,135,000 | 1,824,400 |
36
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Pennsylvania Economic Development Financing Authority UPMC Revenue Series A 4.00% 11/15/42 | 3,300,000 | $ | 3,140,346 | ||||
Pennsylvania Higher Educational Facilities Authority Revenue (Thomas Jefferson University) Series A 5.00% 9/1/45 | 1,530,000 | 1,563,507 | |||||
Rochester, Minnesota (The Homestead at Rochester) Series A 6.875% 12/1/48 | 1,790,000 | 1,825,120 | |||||
Salem, Oregon Hospital Facility Authority Revenue (Capital Manor Project) | |||||||
4.00% 5/15/47 | 865,000 | 729,999 | |||||
4.00% 5/15/57 | 865,000 | 690,772 | |||||
(Salem Health Projects) Series A 4.00% 5/15/49 | 500,000 | 457,325 | |||||
Seminole County, Florida Industrial Development Authority Revenue (Legacy Pointe at UCF Project) Series A 5.50% 11/15/49 | 3,055,000 | 2,709,632 | |||||
Tarrant County, Texas Cultural Education Facilities Finance Corporation Retirement Facility Revenue (Buckner Senior Living - Ventana Project) 6.625% 11/15/37 | 840,000 | 875,423 | |||||
Tempe, Arizona Industrial Development Authority Revenue (Mirabella at ASU Project) Series A 144A 6.125% 10/1/52 # | 1,395,000 | 1,313,937 | |||||
Union County Hospital Facility Authority (Grande Ronde Hospital Project) | |||||||
5.00% 7/1/40 | 1,000,000 | 1,025,640 | |||||
5.00% 7/1/42 | 1,185,000 | 1,210,560 | |||||
5.00% 7/1/47 | 500,000 | 508,015 | |||||
5.00% 7/1/52 | 1,125,000 | 1,130,715 | |||||
University of North Carolina at Chapel Hill 5.00% 2/1/46 | 380,000 | 392,361 | |||||
Virginia Small Business Financing Authority Revenue (LifeSpire of Virginia) 4.00% 12/1/41 | 2,500,000 | 2,303,625 |
37
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Washington State Housing Finance Commission (Heron’s Key Senior Living) Series A 144A 7.00% 7/1/45 # | 3,890,000 | $ | 4,030,312 | ||||
114,057,220 | |||||||
Lease Revenue Bonds — 7.18% | |||||||
Kansas City Industrial Development Authority (Kansas City International Airport Terminal Modernization Project) Series B 5.00% 3/1/49 (AGM) (AMT) | 2,450,000 | 2,529,110 | |||||
Metropolitan Pier & Exposition Authority, Illinois (McCormick Place Expansion Project) | |||||||
Series A 4.00% 6/15/50 | 12,885,000 | 11,307,618 | |||||
Series A 4.00% 6/15/50 (BAM) | 6,030,000 | 5,584,081 | |||||
Series A 4.00% 6/15/52 | 2,870,000 | 2,495,666 | |||||
Series A 4.00% 6/15/52 (BAM) | 1,085,000 | 994,186 | |||||
Series A 5.00% 6/15/50 (BAM) | 2,175,000 | 2,230,680 | |||||
Series A 5.00% 6/15/57 | 1,235,000 | 1,257,848 | |||||
Series B 2.809% 12/15/54 (BAM) ^ | 28,520,000 | 6,006,882 | |||||
Minnesota Housing Finance Agency (State Appropriation) 5.00% 8/1/31 | 195,000 | 195,445 | |||||
New Jersey Transportation Trust Fund Authority (Transportation System) Series A 3.269% 12/15/39 (BAM) ^ | 12,850,000 | 6,019,068 | |||||
New York Liberty Development (Class 3-3 World Trade Center Project) 144A 7.25% 11/15/44 # | 8,000,000 | 8,154,560 | |||||
(Green Bond) Series A 3.00% 11/15/51 (BAM) | 3,535,000 | 2,593,453 | |||||
Virginia College Building Authority (21st Century College and Equipment Programs) Series A 5.00% 2/1/40 | 5,000,000 | 5,673,800 | |||||
Virginia Commonwealth Transportation Board (Transportation Capital Project) 4.00% 5/15/36 | 6,100,000 | 6,385,175 | |||||
(U.S. Route 58 Corridor Development Program) 4.00% 5/15/47 | 4,180,000 | 4,088,124 | |||||
65,515,696 | |||||||
Local General Obligation Bonds — 4.27% | |||||||
Chicago, Illinois Series A 5.25% 1/1/29 | 1,545,000 | 1,579,145 |
38
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Local General Obligation Bonds (continued) | |||||||
Chicago, Illinois | |||||||
Series A 5.50% 1/1/49 | 760,000 | $ | 800,979 | ||||
Series A 6.00% 1/1/38 | 400,000 | 430,284 | |||||
Chicago, Illinois Board of Education | |||||||
5.00% 4/1/42 | 885,000 | 910,931 | |||||
5.00% 4/1/46 | 905,000 | 927,697 | |||||
Dallas Independent School District, Texas 2.75% 2/15/52 (PSF) | 2,585,000 | 1,845,354 | |||||
Galveston Independent School District, Texas 4.00% 2/1/47 (PSF) | 2,500,000 | 2,398,775 | |||||
Los Angeles, California Community College District Series C 5.00% 8/1/25 | 1,905,000 | 2,054,924 | |||||
Mechanicsburg, Pennsylvania Area School District Series AA 4.00% 5/15/50 | 2,875,000 | 2,766,239 | |||||
Mecklenburg County, North Carolina | |||||||
Series A 5.00% 4/1/25 | 1,000,000 | 1,066,400 | |||||
Series A 5.00% 9/1/25 | 6,110,000 | 6,578,331 | |||||
New York City, New York | |||||||
Series E-1 5.00% 3/1/44 | 3,825,000 | 4,057,331 | |||||
Series F-1 5.00% 4/1/45 | 4,090,000 | 4,336,954 | |||||
Subseries A-1 5.00% 8/1/47 | 1,330,000 | 1,426,518 | |||||
Subseries B-1 5.00% 12/1/37 | 3,440,000 | 3,701,130 | |||||
Subseries B-1 5.00% 12/1/41 | 3,825,000 | 4,083,914 | |||||
38,964,906 | |||||||
Pre-Refunded/Escrowed to Maturity Bonds — 1.23% | |||||||
Broward County, Florida Airport System Revenue Series C 5.25% 10/1/30-23 § | 3,825,000 | 3,943,651 | |||||
Ohio Turnpike & Infrastructure Commission (Infrastructure Projects) Series A-1 5.00% 2/15/28-22 § | 235,000 | 237,573 | |||||
Orange County, Florida Health Facilities Authority Revenue (Presbyterian Retirement Communities Project) 5.00% 8/1/36 | 2,125,000 | 2,220,838 | |||||
Rockwall Independent School District, Texas 5.00% 2/15/46-25 (PSF) § | 1,530,000 | 1,617,761 | |||||
Southwestern Illinois Development Authority Revenue (Memorial Group) 7.125% 11/1/43-23 § | 1,530,000 | 1,610,998 | |||||
Toledo, Ohio Water System Revenue 5.00% 11/15/38-23 § | 760,000 | 774,045 |
39
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | |||||||
Waterbury, Connecticut Lot A 5.00% 12/1/32-23 § | 760,000 | $ | 784,753 | ||||
11,189,619 | |||||||
Resource Recovery Revenue Bond — 0.14% | |||||||
Union County, New Jersey Improvement Authority Revenue (Aries Linden, LLC Project) 144A 6.75% 12/1/41 (AMT) # | 1,490,000 | 1,301,798 | |||||
1,301,798 | |||||||
Special Tax Revenue Bonds — 19.04% | |||||||
Allentown, Neighborhood Improvement Zone Development Authority Revenue (Forward Delivery) 5.00% 5/1/42 | 2,000,000 | 2,081,940 | |||||
Bullhead City, Arizona Excise Taxes Revenue | |||||||
2.30% 7/1/41 | 1,000,000 | 708,280 | |||||
2.55% 7/1/46 | 2,885,000 | 1,958,165 | |||||
City & County of San Francisco, California Special Tax District No 2020-1 Series B 144A 5.25% 9/1/49 # | 3,450,000 | 2,686,929 | |||||
Commonwealth of Puerto Rico 2.337% 11/1/51 • | 4,644,800 | 2,119,190 | |||||
GDB Debt Recovery Authority of Puerto Rico (Taxable) 7.50% 8/20/40 | 30,085,263 | 26,926,310 | |||||
Idaho Housing & Finance Association (Transportation Expansion And Congestion Mitigation) Series A 5.00% 8/15/47 | 2,000,000 | 2,223,120 | |||||
Illinois State First Series 6.00% 6/15/26 (NATL) | 760,000 | 841,882 | |||||
(Junior Obligation) Series A 4.00% 6/15/31 (BAM) | 5,000,000 | 5,206,800 | |||||
Maricopa County, Arizona Industrial Development Authority Education Revenue (Choice Academies, Inc. Project) Series AZ 144A 5.75% 9/1/45 # | 2,505,000 | 2,498,637 | |||||
Matching Fund Special Purpose Securitization Corporation, US Virgin Islands Series A 5.00% 10/1/39 | 6,265,000 | 6,504,010 |
40
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
Metropolitan Transportation Authority Revenue, New York (Climate Bond Certified) Series B-2 5.00% 11/15/36 | 1,530,000 | $ | 1,646,005 | ||||
Miami-Dade County, Florida Special Obligation 3.505% 10/1/37 (BAM) ^ | 2,585,000 | 1,375,298 | |||||
New York City, New York Transitional Finance Authority (Future Tax Secured Fiscal 2014) Series A-1 5.00% 11/1/42 | 7,635,000 | 7,812,666 | |||||
New York City, New York Transitional Finance Authority Building Aid Revenue Subordinate Subseries S-3A 5.00% 7/15/37 | 1,905,000 | 2,061,782 | |||||
New York Convention Center Development Corporate Senior Lien (Hotel Unit Fee Secured) | |||||||
Series B 6.203% 11/15/55 (BAM) ^ | 2,585,000 | 485,075 | |||||
Series B 6.545% 11/15/55 ^ | 5,000 | 852 | |||||
New York State Dormitory Authority Revenue | |||||||
Series A 5.00% 3/15/39 | 3,055,000 | 3,271,324 | |||||
Series A 5.00% 3/15/42 | 1,530,000 | 1,627,951 | |||||
(General Purpose) Series A 4.00% 3/15/49 | 3,450,000 | 3,249,210 | |||||
New York State Thruway Authority State Personal Income Tax Revenue (Climate Bond Certified) Series C 5.00% 3/15/55 | 10,000,000 | 10,731,500 | |||||
Public Finance Authority, Wisconsin (American Dream @ Meadowlands Project) 144A 7.00% 12/1/50 # | 1,645,000 | 1,473,246 | |||||
Puerto Rico Sales Tax Financing Revenue (Restructured) | |||||||
Series A-1 4.55% 7/1/40 | 1,116,000 | 1,115,989 | |||||
Series A-1 4.75% 7/1/53 | 15,410,000 | 14,736,583 | |||||
Series A-1 5.00% 7/1/58 | 20,812,000 | 20,189,721 | |||||
Series A-1 5.226% 7/1/46 ^ | 61,180,000 | 17,521,340 | |||||
Series A-1 6.63% 7/1/51 ^ | 105,029,000 | 22,398,484 | |||||
Series A-2 4.329% 7/1/40 | 5,864,000 | 5,707,197 | |||||
Series A-2 4.784% 7/1/58 | 2,378,000 | 2,223,668 |
41
Schedules of investments
Delaware Tax-Free USA 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 Area 1 and 2A) Series 2015A 5.75% 9/1/32 | 2,530,000 | $ | 2,327,473 | ||||
173,710,627 | |||||||
State General Obligation Bonds — 12.99% | |||||||
California State (Forward Delivery) | |||||||
5.00% 9/1/32 | 1,100,000 | 1,292,610 | |||||
5.00% 9/1/41 | 3,000,000 | 3,355,920 | |||||
(Various Purpose) | |||||||
5.00% 8/1/27 | 1,905,000 | 2,088,547 | |||||
5.00% 3/1/30 | 3,000,000 | 3,185,550 | |||||
5.00% 4/1/37 | 3,825,000 | 3,878,856 | |||||
5.00% 10/1/47 | 1,635,000 | 1,730,778 | |||||
Commonwealth of Massachusetts Series A 5.50% 8/1/30 (AMBAC) | 760,000 | 904,552 | |||||
Commonwealth of Puerto Rico 3.018% 11/1/43 • | 52,361,369 | 27,031,557 | |||||
(Restructured) Series A-1 4.00% 7/1/46 | 10,126,406 | 8,599,445 | |||||
Connecticut State | |||||||
Series B 5.00% 6/15/35 | 2,190,000 | 2,314,633 | |||||
Series E 5.00% 9/15/35 | 1,905,000 | 2,099,767 | |||||
Series E 5.00% 9/15/37 | 1,725,000 | 1,894,309 | |||||
Georgia State Series A 4.00% 7/1/38 | 3,500,000 | 3,628,660 | |||||
Illinois State | |||||||
5.00% 5/1/36 | 55,000 | 56,122 | |||||
5.00% 11/1/36 | 1,560,000 | 1,609,545 | |||||
5.00% 2/1/39 | 2,030,000 | 2,065,119 | |||||
5.25% 2/1/30 | 2,670,000 | 2,735,976 | |||||
5.25% 2/1/32 | 1,040,000 | 1,064,835 | |||||
5.25% 2/1/33 | 90,000 | 92,151 | |||||
5.50% 5/1/39 | 4,395,000 | 4,774,904 | |||||
Series A 4.00% 12/1/33 | 1,010,000 | 986,669 | |||||
Series A 4.00% 3/1/41 | 1,110,000 | 1,023,875 | |||||
Series A 5.00% 3/1/34 | 3,000,000 | 3,204,900 | |||||
Series A 5.00% 4/1/38 | 885,000 | 891,213 | |||||
Series A 5.50% 3/1/42 | 1,500,000 | 1,647,720 |
42
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
Illinois State | |||||||
Series A 5.50% 3/1/47 | 4,700,000 | $ | 5,112,989 | ||||
Series D 5.00% 11/1/27 | 3,075,000 | 3,291,757 | |||||
(Rebuild Illinois Program) Series B 4.00% 11/1/39 | 10,775,000 | 10,060,941 | |||||
Maryland State | |||||||
Series A 5.00% 3/15/26 | 3,825,000 | 4,168,102 | |||||
Series A 5.00% 3/15/28 | 2,290,000 | 2,596,654 | |||||
Texas State (Transportation Commission Mobility) Series A 5.00% 10/1/33 | 1,345,000 | 1,480,294 | |||||
Washington State | |||||||
Series A 5.00% 8/1/42 | 2,500,000 | 2,789,050 | |||||
Series R 4.00% 7/1/29 | 6,300,000 | 6,867,189 | |||||
118,525,189 | |||||||
Transportation Revenue Bonds — 16.21% | |||||||
Chicago, Illinois Midway International Airport Series A 5.00% 1/1/28 (AMT) | 1,000,000 | 1,024,770 | |||||
Chicago, Illinois O’Hare International Airport | |||||||
Series A 5.00% 1/1/37 (AMT) | 1,095,000 | 1,141,417 | |||||
Series A 5.00% 1/1/38 (AMT) | 460,000 | 478,386 | |||||
Series B 5.00% 1/1/33 | 2,075,000 | 2,166,611 | |||||
Series D 5.25% 1/1/42 | 1,530,000 | 1,621,969 | |||||
Chicago, Illinois Transit Authority Revenue Series A 4.00% 12/1/55 | 865,000 | 772,895 | |||||
Dallas, Texas Fort Worth International Airport Revenue Series F 5.25% 11/1/30 | 3,825,000 | 3,935,657 | |||||
Denver City & County, Colorado Airport System Revenue | |||||||
Series A 4.00% 12/1/43 (AMT) | 5,900,000 | 5,539,156 | |||||
Series A 5.00% 12/1/43 (AMT) | 4,580,000 | 4,751,796 | |||||
Foothill-Eastern, California Transportation Corridor Agency Revenue (Junior Lien) Series C 4.00% 1/15/43 | 1,725,000 | 1,596,022 | |||||
(Senior Lien) Series A 4.00% 1/15/46 | 3,585,000 | 3,386,391 | |||||
Georgia Ports Authority Revenue 4.00% 7/1/52 | 1,200,000 | 1,141,068 |
43
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Harris County, Texas Toll Road Authority Senior Lien Series A 5.00% 8/15/27 | 2,000,000 | $ | 2,240,880 | ||||
Lee County, Florida Airport Revenue Series B 4.00% 10/1/51 (AMT) | 4,430,000 | 4,043,792 | |||||
Los Angeles, California Department of Airports Revenue Subseries F 4.00% 5/15/49 (AMT) | 2,500,000 | 2,305,775 | |||||
Love Field Airport Modernization, Texas General Airport Revenue | |||||||
5.00% 11/1/35 (AMT) | 760,000 | 796,814 | |||||
5.00% 11/1/36 (AMT) | 760,000 | 795,819 | |||||
Massachusetts Port Authority Revenue | |||||||
Series A 5.00% 7/1/37 (AMT) | 3,055,000 | 3,264,328 | |||||
Series A 5.00% 7/1/39 (AMT) | 2,245,000 | 2,383,988 | |||||
Series A 5.00% 7/1/40 (AMT) | 1,390,000 | 1,472,205 | |||||
Metropolitan Nashville, Tennessee Airport Authority Series A 5.00% 7/1/45 | 3,840,000 | 4,002,278 | |||||
Metropolitan Transportation Authority Revenue, New York Series D 5.00% 11/15/33 | 1,140,000 | 1,197,160 | |||||
(Climate Bond Certified) Subseries A-2 4.00% 11/15/41 | 1,370,000 | 1,265,373 | |||||
(Green Bonds) | |||||||
Series A-1 5.00% 11/15/47 | 1,000,000 | 1,024,190 | |||||
Subordinate Series C-1 5.25% 11/15/55 | 70,000 | 72,835 | |||||
Metropolitan Washington, D.C. Airports Authority Dulles Toll Road Revenue (Dulles Metrorail and Capital Improvement Projects) Series B 4.00% 10/1/49 | 3,270,000 | 2,947,872 | |||||
Montgomery County, Texas Toll Road Authority Revenue (Senior Lien) 5.00% 9/15/37 | 1,340,000 | 1,377,587 | |||||
New Jersey Turnpike Authority | |||||||
Series A 5.00% 1/1/28 | 3,825,000 | 3,987,792 | |||||
Series E 5.00% 1/1/45 | 4,580,000 | 4,735,491 | |||||
New York Transportation Development Corporation Special Facilities Revenue (Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) 4.375% 10/1/45 (AMT) | 12,800,000 | 11,877,120 |
44
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
North Carolina Turnpike Authority Revenue 5.00% 1/1/36 (AGM) | 2,290,000 | $ | 2,505,581 | ||||
North Texas Tollway Authority Revenue | |||||||
(1st Tier) Series B 5.00% 1/1/40 | 1,530,000 | 1,539,716 | |||||
(2nd Tier) Series A 5.00% 1/1/34 | 3,825,000 | 3,992,726 | |||||
Series A 4.00% 1/1/44 | 5,750,000 | 5,535,985 | |||||
Pennsylvania Turnpike Commission Revenue | |||||||
Series A-1 5.00% 12/1/40 | 690,000 | 716,462 | |||||
Series A-2 5.00% 12/1/43 | 1,530,000 | 1,622,641 | |||||
Series C 5.00% 12/1/44 | 760,000 | 780,140 | |||||
Philadelphia, Pennsylvania Airport Revenue (Private Activity) 5.00% 7/1/51 (AMT) | 3,000,000 | 3,094,230 | |||||
Phoenix, Arizona Civic Improvement (Junior Lien) Series B 5.00% 7/1/44 (AMT) | 1,370,000 | 1,422,361 | |||||
Port of Seattle, Washington Intermediate Lien Revenue (Private Activity) | |||||||
Series B 4.00% 8/1/47 (AMT) | 1,500,000 | 1,387,725 | |||||
Series B 5.50% 8/1/47 (AMT) | 1,000,000 | 1,102,560 | |||||
Regional Transportation District (Denver Transit Partners Eagle P3 Project) Series A 4.00% 7/15/39 | 2,045,000 | 1,958,599 | |||||
Salt Lake City, Utah Airport Revenue | |||||||
Series A 5.00% 7/1/36 (AMT) | 3,055,000 | 3,211,813 | |||||
Series A 5.00% 7/1/51 (AMT) | 3,000,000 | 3,111,900 | |||||
Series B 5.00% 7/1/42 | 2,635,000 | 2,775,314 | |||||
San Diego County, California Regional Airport Authority Series B 4.00% 7/1/56 (AMT) (BAM) | 7,000,000 | 6,334,580 | |||||
San Francisco City & County, California Airports Commission (San Francisco International Airport) Series A 5.00% 5/1/49 (AMT) | 3,825,000 | 3,964,421 | |||||
South Jersey Port, New Jersey (Subordinated Marine Terminal) | |||||||
Series B 5.00% 1/1/42 (AMT) | 1,000,000 | 1,014,850 | |||||
Series B 5.00% 1/1/48 (AMT) | 5,340,000 | 5,389,288 |
45
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien (NTE Mobility Partners Segments 3 LLC Segment 3A and 3B Facility) | |||||||
6.75% 6/30/43 (AMT) | 1,900,000 | $ | 1,953,390 | ||||
7.00% 12/31/38 (AMT) | 1,395,000 | 1,439,654 | |||||
(NTE Mobility Partners Segments 3 LLC Segment 3C Project) 5.00% 6/30/58 (AMT) | 11,325,000 | 11,454,558 | |||||
Virginia Small Business Financing Authority Revenue (Transform 66 P3 Project) 5.00% 12/31/56 (AMT) | 930,000 | 945,466 | |||||
Washington Metropolitan Area Transit Authority Revenue, D.C. 5.00% 7/1/43 | 760,000 | 811,703 | |||||
Wayne County, Michigan Airport Authority (Detroit Metropolitan Wayne County Airport) | |||||||
Series A 5.00% 12/1/42 | 1,905,000 | 1,914,296 | |||||
Series D 5.00% 12/1/45 (AGM) | 570,000 | 596,551 | |||||
147,923,947 | |||||||
Water & Sewer Revenue Bonds — 1.19% | |||||||
Goodyear, Arizona Water & Sewer Revenue (Subordinate Lien Water and Sewer Revenue Obligations) 4.00% 7/1/45 (AGM) | 3,450,000 | 3,367,959 | |||||
Guam Government Waterworks Authority Series A 5.00% 1/1/50 | 1,530,000 | 1,592,898 | |||||
Mississippi Development Bank (Jackson Water and Sewer System Revenue Bond Project) 6.75% 12/1/30 (AGM) | 760,000 | 794,284 | |||||
Tampa, Florida Water & Wastewater System Revenue (Green Bonds) Series A 5.25% 10/1/57 | 4,500,000 | 5,121,585 | |||||
10,876,726 | |||||||
Total Municipal Bonds (cost $902,858,459) | 875,806,700 |
46
Principal amount° | Value (US $) | ||||||
Short-Term Investments — 3.07% | |||||||
Variable Rate Demand Notes — 3.07%¤ | |||||||
Los Angeles, California Department of Water & Power System Revenue Subseries Series B-3 0.85% 7/1/34 (SPA - Barclays Bank) | 1,400,000 | $ | 1,400,000 | ||||
Los Angeles, California Department of Water & Power Water System Revenue Subseries B-4 0.85% 7/1/35 (SPA - Barclays Bank) | 1,000,000 | 1,000,000 | |||||
Mississippi Business Finance Corporation, Gulf Opportunity Zone Industrial Development Revenue (Chevron USA Project) Series C 1.00% 12/1/30 | 3,500,000 | 3,500,000 | |||||
Mississippi Development Bank 1.00% 12/1/39 | 2,000,000 | 2,000,000 | |||||
New York City, New York Fiscal 2018 Subordinate Series B-4 1.08% 10/1/46 (SPA - Barclays Bank) | 1,250,000 | 1,250,000 | |||||
New York City, New York Municipal Water Finance Authority 1.05% 6/15/50 (SPA – JPMorgan Chase Bank N.A.) | 1,245,000 | 1,245,000 | |||||
New York City, New York Transitional Finance Authority Subseries A-4 1.05% 8/1/39 (SPA – JPMorgan Chase Bank N.A.) | 1,300,000 | 1,300,000 | |||||
New York City, New York Water & Sewer System Fiscal 2008 Series BB-5 1.03% 6/15/33 (SPA - Bank of America N.A.) | 4,545,000 | 4,545,000 | |||||
New York, Metropolitan Transportation Authority Revenue Subseries A-2 1.03% 11/1/26 (LOC - TD Bank N.A.) | 3,000,000 | 3,000,000 | |||||
Phoenix, Arizona Industrial Development Authority (Mayo Clinic) Series B 0.98% 11/15/52 (SPA - Northern Trust) | 600,000 | 600,000 | |||||
University of Michigan Series D-1 0.98% 12/1/24 | 1,400,000 | 1,400,000 |
47
Schedules of investments
Delaware Tax-Free USA Fund
Principal amount° | Value (US $) | ||||||
Short-Term Investments (continued) | |||||||
Variable Rate Demand Notes (continued) | |||||||
University of North Carolina at Chapel Hill Series B 1.00% 2/15/31 (SPA - TD Bank N.A.) | 6,800,000 | $ | 6,800,000 | ||||
Total Short-Term Investments (cost $28,040,000) | 28,040,000 | ||||||
Total Value of Securities—99.06% (cost $930,898,459) | $ | 903,846,700 |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2022, the aggregate value of Rule 144A securities was $69,061,237, which represents 7.57% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
‡ | Non-income producing security. Security is currently in default. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 10 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2022. |
Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
48
Summary of abbreviations: (continued)
ICE – Intercontinental Exchange, Inc.
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
LOC – Letter of Credit
N.A. – National Association
NATL – Insured by National Public Finance Guarantee Corporation
PSF – Guaranteed by Permanent School Fund
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
49
Schedules of investments | |
Delaware Tax-Free USA Intermediate Fund | August 31, 2022 |
Principal amount° | Value (US $) | ||||||
Municipal Bonds — 96.48% | |||||||
Corporate Revenue Bonds — 12.80% | |||||||
Arizona Industrial Development Authority Revenue (Legacy Cares, Inc. Project) Series A 144A 7.75% 7/1/50 # | 5,520,000 | $ | 5,878,303 | ||||
Black Belt Energy Gas District, Alabama (Project No. 4) Series A 4.00% 6/1/25 | 1,655,000 | 1,676,234 | |||||
Buckeye, Ohio Tobacco Settlement Financing Authority (Senior) Series A-2 3.00% 6/1/48 | 4,315,000 | 3,200,781 | |||||
Series A-2 4.00% 6/1/48 | 4,200,000 | 3,764,502 | |||||
California Pollution Control Financing Authority Revenue (Calplant I Project) 144A 8.00% 7/1/39 (AMT) #, ‡ | 1,250,000 | 750,000 | |||||
Central Plains, Nebraska Energy Project (Project No. 3) Series A 5.00% 9/1/42 | 250,000 | 263,577 | |||||
Chandler, Arizona Industrial Development Authority Revenue (Intel Corporation Project) 2.70% 12/1/37 (AMT) • | 2,700,000 | 2,690,577 | |||||
Commonwealth of Pennsylvania Financing Authority (Tobacco Master Settlement Payment) 5.00% 6/1/27 | 2,000,000 | 2,182,740 | |||||
Erie, New York Tobacco Asset Securitization (Capital Appreciation-Asset-Backed) Series A 144A 0.459% 6/1/60 #, ^ | 38,675,000 | 2,216,077 | |||||
Florida Development Finance Corporation Surface Transportation Facility Revenue (Brightline Passenger Rail Project) Series B 144A 7.375% 1/1/49 (AMT) # | 5,435,000 | 5,184,610 | |||||
(Virgin Trains USA Passenger Rail Project) Series A 144A 6.50% 1/1/49 (AMT) #, • | 1,710,000 | 1,552,936 | |||||
George L Smith II Congress Center Authority Series A 4.00% 1/1/54 | 2,210,000 | 1,898,324 | |||||
Series B 144A 5.00% 1/1/36 # | 1,000,000 | 950,660 | |||||
Houston, Texas Airport System Revenue (United Airlines Inc.) 5.00% 7/1/29 (AMT) | 3,370,000 | 3,386,142 |
50
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Inland, California Empire Tobacco Securitization (Capital Appreciation-Turbo-Asset-Backed) Series E 144A 1.33% 6/1/57 #, ^ | 62,600,000 | $ | 3,565,070 | ||||
Series F 144A 0.396% 6/1/57 #, ^ | 74,090,000 | 3,535,575 | |||||
Iowa Finance Authority Midwestern Disaster Area Revenue (Iowa Fertilizer Company Project) 5.00% 12/1/50 | 4,135,000 | 4,190,947 | |||||
Iowa Tobacco Settlement Authority Series A-2 4.00% 6/1/38 | 300,000 | 295,791 | |||||
Series A-2 4.00% 6/1/39 | 600,000 | 588,918 | |||||
Iowa Tobacco Settlement Authority Revenue Series A-2 4.00% 6/1/40 | 300,000 | 293,010 | |||||
Jefferson County, Texas Industrial Development (TRP Crude Marketing LLC Project) 144A 7.75% 4/1/39 # | 1,275,000 | 1,113,279 | |||||
Kentucky Public Energy Authority (Gas Supply Revenue) Series C-1 4.00% 12/1/49 • | 5,000,000 | 5,044,750 | |||||
Lower Alabama Gas District Series A 5.00% 9/1/34 | 4,850,000 | 5,180,139 | |||||
Maine Finance Authority Revenue (Go Lab Madison Project, Green Bonds) 144A 8.00% 12/1/51 (AMT) # | 3,490,000 | 2,812,242 | |||||
Michigan Finance Authority Series A Class 1 4.00% 6/1/49 | 2,000,000 | 1,833,580 | |||||
New Jersey Economic Development Authority Special Facilities Revenue (Continental Airlines Project) Series B 5.625% 11/15/30 (AMT) | 1,890,000 | 1,943,827 | |||||
New Jersey Tobacco Settlement Financing Subordinate Series B 5.00% 6/1/46 | 1,965,000 | 1,980,445 | |||||
New York Counties Tobacco Trust V (Capital Appreciation - Pass Through) Series 4B 144A 0.587% 6/1/60 #, ^ | 20,000,000 | 712,000 | |||||
New York Liberty Development Revenue (Goldman Sachs Headquarters) 5.25% 10/1/35 | 3,540,000 | 3,960,623 | |||||
New York Transportation Development Special Facilities Revenue Series B 6.50% 11/1/39 | 3,485,000 | 4,210,786 |
51
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
New York Transportation Development Special Facilities Revenue (American Airlines, Inc. - John F. Kennedy International Airport Project) 3.00% 8/1/31 (AMT) | 5,230,000 | $ | 4,880,584 | ||||
(Delta Airlines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) 5.00% 1/1/34 (AMT) | 7,210,000 | 7,437,619 | |||||
Public Authority for Colorado Energy Natural Gas Revenue 6.50% 11/15/38 | 3,000,000 | 3,660,690 | |||||
Public Finance Authority, Wisconsin (Senior Lien - Grand Hyatt San Antonio Hotel Acquisition Project) Series A 5.00% 2/1/52 | 2,820,000 | 2,928,598 | |||||
Series A 5.00% 2/1/62 | 1,375,000 | 1,412,015 | |||||
Salt Verde, Arizona Financial Corporation Senior Gas Revenue 5.00% 12/1/32 | 3,850,000 | 4,118,884 | |||||
5.25% 12/1/24 | 3,050,000 | 3,169,621 | |||||
Salt Verde, Arizona Financial Senior Gas Revenue 5.00% 12/1/37 | 4,000,000 | 4,223,800 | |||||
South Carolina Jobs - Economic Development Authority Educational Facilities Revenue (AAC East LLC Project - Green Bonds) Series A 144A 7.00% 5/1/39 (AMT) # | 1,500,000 | 1,183,815 | |||||
(Jasper Pellets, LLC Project - Green Bonds) Series A 144A 7.00% 11/1/38 (AMT) # | 1,250,000 | 1,125,000 | |||||
St. John Baptist Parish, Louisiana (Marathon Oil Corporation project) Subseries A-2 2.10% 6/1/37 • | 2,250,000 | 2,219,265 | |||||
Tennessee Energy Acquisition Commodity Project Revenue Series A 5.00% 5/1/52 • | 1,300,000 | 1,359,904 | |||||
Tobacco Securitization Authority of Southern California (Capital Appreciation-2nd Subordinate Lien) Series C 1.99% 6/1/46 ^ | 9,655,000 | 1,522,883 | |||||
(Capital Appreciation-3rd Subordinate Lien) Series D 2.123% 6/1/46 ^ | 1,630,000 | 200,572 | |||||
TSASC, New York Series A 5.00% 6/1/30 | 475,000 | 505,248 | |||||
Series A 5.00% 6/1/31 | 475,000 | 503,329 |
52
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Corporate Revenue Bonds (continued) | |||||||
Tuscaloosa County, Alabama Industrial Development Authority (Hunt Refining Project) Series A 144A 5.25% 5/1/44 # | 3,300,000 | $ | 3,020,490 | ||||
Virginia Tobacco Settlement Financing Corporation (Capital Appreciation Asset-Backed) Series B 5.20% 6/1/46 | 1,250,000 | 1,250,050 | |||||
Series C 10.791% 6/1/47 ^ | 53,800,000 | 13,291,828 | |||||
Series D 2.466% 6/1/47 ^ | 8,185,000 | 1,955,233 | |||||
136,825,873 | |||||||
Education Revenue Bonds — 5.71% | |||||||
Arizona Industrial Development Authority Revenue (American Charter Schools Foundation Project) 144A 6.00% 7/1/37 # | 1,420,000 | 1,505,754 | |||||
(Empower College Prep Project) 144A 6.00% 7/1/49 # | 875,000 | 889,595 | |||||
(Macombs Facility Project) Series A 4.00% 7/1/61 | 2,000,000 | 1,614,380 | |||||
(Odyssey Preparatory Academy Project) Series A 144A 5.50% 7/1/52 # | 875,000 | 887,127 | |||||
Bucks County, Pennsylvania Industrial Development Authority Revenue (School Lane Charter School Project) 5.125% 3/15/36 | 2,000,000 | 2,065,340 | |||||
California Educational Facilities Authority Revenue (Stanford University) Series V-1 5.00% 5/1/49 | 1,075,000 | 1,275,348 | |||||
California Municipal Finance Authority Series A 144A 5.50% 6/1/53 # | 1,000,000 | 1,010,680 | |||||
California School Finance Authority (View Park Elementary & Middle Schools) Series A 4.75% 10/1/24 | 175,000 | 177,401 | |||||
California State University (Systemwide) Series A 5.00% 11/1/31 | 2,000,000 | 2,209,520 | |||||
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 | 500,000 | 501,420 |
53
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
California Statewide Communities Development Authority Revenue (California Baptist University) Series A 144A 6.125% 11/1/33 # | 2,215,000 | $ | 2,279,833 | ||||
Capital Trust Agency, Florida Revenue (Liza Jackson Preparatory School Project) Series A 5.00% 8/1/40 | 300,000 | 307,653 | |||||
Series A 5.00% 8/1/55 | 800,000 | 805,512 | |||||
(University Bridge, LLC Student Housing Project) Series A 144A 5.25% 12/1/43 # | 2,000,000 | 1,977,120 | |||||
District of Columbia Revenue (KIPP DC Issue) 4.00% 7/1/39 | 1,275,000 | 1,202,287 | |||||
4.00% 7/1/44 | 740,000 | 673,851 | |||||
Fulton County, Georgia Development Authority Revenue (Georgia Institute of Technology) 5.00% 6/15/44 | 3,100,000 | 3,381,232 | |||||
Idaho Housing & Finance Association (Alturas International Academy Project) 4.00% 5/1/52 | 1,400,000 | 1,209,194 | |||||
(Anser of Idaho Project) Series A 4.00% 5/1/28 | 230,000 | 236,951 | |||||
Series A 4.00% 5/1/30 | 250,000 | 256,390 | |||||
(Gem Prep: Meridian South Charter School Project) 144A 4.00% 5/1/46 # | 710,000 | 542,795 | |||||
(Sage International School of Boise Project) Series A 4.00% 5/1/29 | 205,000 | 211,351 | |||||
Series A 4.00% 5/1/35 | 450,000 | 453,411 | |||||
Series A 4.00% 5/1/40 | 1,330,000 | 1,316,487 | |||||
Series A 4.00% 5/1/55 | 1,540,000 | 1,450,695 | |||||
Illinois Finance Authority | |||||||
(University of Illinois at Chicago) Series A 5.00% 2/15/26 | 400,000 | 405,680 | |||||
Series A 5.00% 2/15/28 | 260,000 | 263,747 | |||||
Series A 5.00% 2/15/30 | 390,000 | 392,706 | |||||
Series A 5.00% 2/15/32 | 265,000 | 265,453 | |||||
Maricopa County, Arizona Industrial Development Authority Revenue (Arizona Autism Charter Schools Project) Series A 144A 5.00% 7/1/40 # | 250,000 | 249,690 |
54
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
Maricopa County, Arizona Industrial Development
Authority Revenue (Arizona Autism Charter Schools Project) Series A 144A 5.00% 7/1/50 # | 175,000 | $ | 169,619 | ||||
(Highland Prep Project) Series A 4.00% 7/1/30 | 330,000 | 338,996 | |||||
Series A 4.00% 7/1/32 | 360,000 | 361,984 | |||||
Series A 4.00% 7/1/34 | 390,000 | 385,347 | |||||
Series A 4.00% 7/1/36 | 425,000 | 416,003 | |||||
Series A 4.00% 7/1/38 | 460,000 | 444,677 | |||||
Series A 4.00% 7/1/40 | 500,000 | 477,770 | |||||
Series A 4.00% 7/1/46 | 740,000 | 682,050 | |||||
Massachusetts Development Finance Agency Revenue (Harvard University) Series A 5.00% 7/15/40 | 5,000,000 | 5,886,750 | |||||
Massachusetts School Building Authority Series C 5.00% 8/15/37 | 2,500,000 | 2,647,600 | |||||
Miami-Dade County, Florida Educational Facilities Authority (University of Miami) Series A 5.00% 4/1/30 | 520,000 | 541,705 | |||||
Series A 5.00% 4/1/31 | 1,090,000 | 1,131,856 | |||||
New York State Dormitory Authority Revenue (New York University) Series A 5.75% 7/1/27 (NATL) | 7,530,000 | 8,200,998 | |||||
(Touro College & University System) Series A 5.25% 1/1/34 | 1,335,000 | 1,352,903 | |||||
Newark, Texas Higher Education Finance (Village Tech Schools) Series A 5.125% 8/15/47 | 1,250,000 | 1,136,350 | |||||
Oregon State Facilities Authority Revenue (Metro East Web Academy Project) Series A 144A 5.00% 6/15/49 # | 1,000,000 | 905,620 | |||||
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 | 363,958 | |||||
Series A 5.00% 7/1/32 | 235,000 | 242,410 |
55
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Education Revenue Bonds (continued) | |||||||
South Carolina Jobs - Economic Development Authority Educational Facilities Revenue (High Point Academy Project) Series A 144A 5.75% 6/15/39 # | 1,345,000 | $ | 1,416,191 | ||||
University of Texas Permanent University Fund Series B 5.00% 7/1/27 | 3,715,000 | 3,878,720 | |||||
61,000,110 | |||||||
Electric Revenue Bonds — 5.80% | |||||||
California Community Choice Financing Authority Clean Energy Project Revenue Series A-1 4.00% 5/1/53 • | 3,000,000 | 3,053,430 | |||||
Series B-1 4.00% 2/1/52 • | 1,910,000 | 1,928,049 | |||||
Guam Power Authority Revenue Series A 5.00% 10/1/32 | 4,000,000 | 4,390,800 | |||||
Series A 5.00% 10/1/33 | 2,915,000 | 3,175,426 | |||||
Long Island, New York Power Authority 5.00% 9/1/33 | 250,000 | 273,740 | |||||
5.00% 9/1/35 | 1,000,000 | 1,088,950 | |||||
Municipal Electric Authority of Georgia (Plant Vogtle Units 3&4 Project) Series A 5.00% 1/1/39 | 6,250,000 | 6,500,625 | |||||
New York State Utility Debt Securitization Authority (Restructuring Bonds) 5.00% 12/15/33 | 1,500,000 | 1,602,390 | |||||
Puerto Rico Electric Power Authority Revenue Series CCC 5.25% 7/1/27 ‡ | 1,520,000 | 1,235,000 | |||||
Series TT 5.00% 7/1/32 ‡ | 1,555,000 | 1,263,438 | |||||
Series WW 5.25% 7/1/33 ‡ | 1,015,000 | 824,688 | |||||
Series WW 5.50% 7/1/17 ‡ | 2,200,000 | 1,784,750 | |||||
Series WW 5.50% 7/1/19 ‡ | 1,710,000 | 1,387,237 | |||||
Series WW 5.50% 7/1/38 ‡ | 1,925,000 | 1,571,281 | |||||
Series XX 5.25% 7/1/40 ‡ | 4,630,000 | 3,761,875 | |||||
Series ZZ 5.00% 7/1/19 ‡ | 2,990,000 | 2,414,425 | |||||
Salt River, Arizona Project Agricultural Improvement & Power District Electric Systems Revenue Series A 5.00% 12/1/35 | 4,000,000 | 4,219,600 | |||||
Series A 5.00% 1/1/38 | 5,000,000 | 5,390,600 | |||||
(Salt River Project Electric System) 5.00% 1/1/30 | 5,000,000 | 5,601,550 |
56
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Electric Revenue Bonds (continued) | |||||||
Utility Debt Securitization
Authority, New York (Restructuring Bonds) 5.00% 12/15/37 | 10,000,000 | $ | 10,572,900 | ||||
62,040,754 | |||||||
Healthcare Revenue Bonds — 7.98% | |||||||
Apple Valley, Minnesota (Minnesota Senior Living LLC Project) Series B 5.25% 1/1/37 | 915,000 | 669,936 | |||||
Arizona Health Facilities Authority (Scottsdale Lincoln Hospital Project) 5.00% 12/1/30 | 5,000,000 | 5,230,900 | |||||
California Health Facilities Financing Authority (Children’s Hospital of Orange County) Series A 2.125% 11/1/41 | 5,000,000 | 3,433,750 | |||||
(Kaiser Permanente) Series A-2 5.00% 11/1/47 | 4,600,000 | 5,235,904 | |||||
(Sutter Health) Series A 5.00% 11/15/38 | 760,000 | 811,460 | |||||
Colorado Health Facilities Authority Revenue (AdventHealth Obligated Group) Series A 4.00% 11/15/46 | 7,000,000 | 6,624,240 | |||||
(CommonSpirit Health) Series A-1 4.00% 8/1/38 | 1,000,000 | 965,470 | |||||
Series A-2 5.00% 8/1/38 | 1,105,000 | 1,155,388 | |||||
County of Hamilton, Ohio Hospital Facilities Revenue
(Cincinnati Children’s Hospital Medical Center) Series CC 5.00% 11/15/49 | 3,540,000 | 4,025,971 | |||||
Cuyahoga County, Ohio (The Metrohealth System) 5.00% 2/15/37 | 1,000,000 | 1,032,620 | |||||
Escambia County, Florida Health Facilities Authority
Revenue (Baptist Healthcare Obligated Group) Series A 4.00% 8/15/45 | 655,000 | 586,874 | |||||
Series A 4.00% 8/15/50 | 1,950,000 | 1,726,764 | |||||
Gainesville & Hall County, Georgia Hospital Authority
Revenue (Northeast Georgia Health System Project) Series A 3.00% 2/15/51 | 515,000 | 361,844 |
57
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Glendale, Arizona Industrial Development Authority Revenue (Glencroft Retirement Community Project) 5.25% 11/15/46 | 875,000 | $ | 676,183 | ||||
(Royal Oaks Inspirata Pointe Project) Series A 5.00% 5/15/41 | 500,000 | 496,360 | |||||
(Royal Oaks Life Care Community) 4.00% 5/15/27 | 620,000 | 606,955 | |||||
4.00% 5/15/30 | 1,385,000 | 1,312,551 | |||||
(The Terraces of Phoenix Project) Series A 5.00% 7/1/48 | 875,000 | 769,072 | |||||
Henrico County, Virginia Economic Development Authority Residential Care Facility Revenue (Westminster Canterbury Richmond) Series A 5.00% 10/1/42 | 650,000 | 698,308 | |||||
Series A 5.00% 10/1/47 | 2,275,000 | 2,407,382 | |||||
Illinois Finance Authority (NorthShore - Edward-Elmhurst Health Credit Group) Series A 5.00% 8/15/51 | 5,490,000 | 5,806,169 | |||||
(The Admiral at the Lake Project) 5.50% 5/15/54 | 875,000 | 705,766 | |||||
Iowa Finance Authority Senior Housing Revenue (PHS Council Bluffs, Inc. Project) 5.00% 8/1/33 | 500,000 | 471,430 | |||||
Kalispell, Montana (Immanuel Lutheran Corporation Project) Series A 5.25% 5/15/32 | 435,000 | 438,567 | |||||
Lancaster County, Pennsylvania Hospital Authority (University of Pennsylvania Health System Obligation) Series A 5.00% 8/15/33 | 2,430,000 | 2,598,666 | |||||
Maricopa County, Arizona Industrial Development Authority Revenue (Banner Health Obligation Group) Series A 5.00% 1/1/32 | 3,000,000 | 3,216,510 | |||||
(Christian Care Surprise, Inc. Project) 144A 5.75% 1/1/36 # | 1,540,000 | 1,253,452 | |||||
Maryland Health & Higher Educational Facilities Authority Revenue (Adventist Healthcare Obligated) Series A 5.50% 1/1/36 | 2,000,000 | 2,127,320 |
58
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Monroe County, New York Industrial Development Revenue (Rochester Regional Health Project) Series D 3.00% 12/1/40 | 1,000,000 | $ | 714,080 | ||||
Series D 4.00% 12/1/38 | 200,000 | 182,564 | |||||
Moon, Pennsylvania Industrial Development Authority (Baptist Homes Society Obligation) 5.625% 7/1/30 | 2,440,000 | 2,375,828 | |||||
National Finance Authority Revenue, New Hampshire (Springpoint Senior Living Project) 4.00% 1/1/51 | 1,330,000 | 1,134,942 | |||||
(The Vista Project) Series A 144A 5.25% 7/1/39 # | 1,000,000 | 936,210 | |||||
New Hope, Texas Cultural Education Facilities Finance (Sanctuary LTC Project) Series A-1 5.50% 1/1/57 | 1,615,000 | 1,386,203 | |||||
New Jersey Health Care Facilities Financing Authority (Virtua Health Issue) Series C 0.75% 7/1/43 (LOC – JPMorgan Chase Bank N.A.) • | 200,000 | 200,000 | |||||
New York State Dormitory Authority Revenue (Orange Regional Medical Center) 144A 5.00% 12/1/31 # | 1,000,000 | 1,025,160 | |||||
144A 5.00% 12/1/32 # | 1,100,000 | 1,122,946 | |||||
144A 5.00% 12/1/33 # | 1,000,000 | 1,016,410 | |||||
Northampton County, Philadelphia, Pennsylvania Industrial Development Authority Revenue (MorningStar Senior Living Project) 5.00% 7/1/32 | 1,275,000 | 1,274,962 | |||||
Ohio State (Cleveland Clinic Health System Obligated Group) Series A 4.00% 1/1/39 | 1,500,000 | 1,470,675 | |||||
Oklahoma Development Finance Authority Health System Revenue (OU Medicine Project) Series B 5.25% 8/15/43 | 2,790,000 | 2,594,867 | |||||
Pennsylvania Economic Development Financing Authority First Mortgage Revenue (Tapestry Moon Senior Housing Project) Series A 144A 6.50% 12/1/38 #, ‡ | 1,000,000 | 380,000 | |||||
Series A 144A 6.75% 12/1/53 #, ‡ | 875,000 | 332,500 |
59
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Healthcare Revenue Bonds (continued) | |||||||
Prince George’s County, Maryland (Collington Episcopal Life Care Community) 5.00% 4/1/30 | 2,880,000 | $ | 2,817,706 | ||||
Salem, Oregon Hospital Facility Authority Revenue (Capital Manor Project) 4.00% 5/15/40 | 1,450,000 | 1,293,458 | |||||
Seminole County, Florida Industrial Development Authority (Legacy Pointe at UCF Project) Series A 5.25% 11/15/39 | 5,340,000 | 4,791,849 | |||||
Series B-1 4.25% 11/15/26 | 3,000,000 | 2,820,000 | |||||
Tempe, Arizona Industrial Development Authority (Mirabella at ASU Project) Series A 144A 6.00% 10/1/37 # | 1,200,000 | 1,161,804 | |||||
Washington State Housing Finance Commission (Heron’s Key Senior Living) Series A 144A 7.00% 7/1/45 # | 800,000 | 828,856 | |||||
85,306,832 | |||||||
Lease Revenue Bonds — 8.24% | |||||||
California Statewide Communities Development Authority Revenue (Lancer Plaza Project) 5.125% 11/1/23 | 185,000 | 186,206 | |||||
Kansas City, Missouri Industrial Development Authority Revenue (Kansas City International Airport Terminal Modernization Project) Series B 5.00% 3/1/49 (AGM) (AMT) | 6,880,000 | 7,102,155 | |||||
Los Angeles County, California (Disney Concert Hall Parking) 5.00% 3/1/23 | 2,395,000 | 2,426,231 | |||||
Metropolitan Pier & Exposition Authority, Illinois (McCormick Place Expansion Project) Series A 3.192% 12/15/56 (BAM) ^ | 12,000,000 | 2,279,640 | |||||
Series A 4.00% 12/15/42 | 2,220,000 | 2,027,970 | |||||
Series A 4.00% 12/15/42 (BAM) | 2,520,000 | 2,407,684 | |||||
Series A 4.00% 12/15/47 | 13,560,000 | 12,030,161 | |||||
Series A 4.00% 6/15/50 | 1,695,000 | 1,487,498 | |||||
Series A 4.00% 6/15/50 (BAM) | 1,000,000 | 926,050 | |||||
Series A 4.00% 6/15/52 | 1,350,000 | 1,173,919 | |||||
Series A 4.00% 6/15/52 (BAM) | 1,000,000 | 916,300 |
60
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Lease Revenue Bonds (continued) | |||||||
New Jersey State Economic Development Authority (NJ Transit Transportation Project) Series A 4.00% 11/1/38 | 1,000,000 | $ | 966,200 | ||||
Series A 4.00% 11/1/39 | 1,000,000 | 961,930 | |||||
New Jersey State Transportation Trust Fund Authority (Capital Appreciation) Series A 2.873% 12/15/39 (BAM) ^ | 25,290,000 | 11,846,089 | |||||
(Highway Reimbursement) Series A 5.00% 6/15/30 | 2,415,000 | 2,588,880 | |||||
(Transportation Program Bonds) Series BB 4.00% 6/15/46 | 5,000,000 | 4,585,550 | |||||
(Transportation System Bonds) Series A 4.00% 6/15/35 | 1,810,000 | 1,773,365 | |||||
Series A 5.00% 12/15/25 | 5,000,000 | 5,325,700 | |||||
New York City, New York Transitional Finance Authority Building Aid Revenue Series S-1 5.00% 7/15/31 | 5,000,000 | 5,258,450 | |||||
New York Liberty Development Revenue (4 World Trade Center Project) Series A 3.00% 11/15/51 (BAM) | 1,000,000 | 733,650 | |||||
(Port Authority Consolidated Bonds) Series 1WTC 2.75% 2/15/44 | 10,000,000 | 7,215,400 | |||||
New York State Dormitory Authority Revenue (Health Facilities Improvement Program) Series 1 5.00% 1/15/28 | 750,000 | 840,278 | |||||
Series 1 5.00% 1/15/29 | 3,100,000 | 3,462,793 | |||||
Virginia College Building Authority Educational Facilities Revenue (21st Century College And Equipment Programs) Series A 5.00% 2/1/29 | 4,000,000 | 4,576,520 | |||||
Virginia Public Building Public Facilities Authority Revenue Series A 4.00% 8/1/39 | 5,000,000 | 5,046,450 | |||||
88,145,069 | |||||||
Local General Obligation Bonds — 3.64% | |||||||
Chicago, Illinois Series A 5.25% 1/1/29 | 640,000 | 654,144 | |||||
Series A 5.50% 1/1/35 | 1,980,000 | 2,134,935 | |||||
Series C 5.00% 1/1/26 | 1,280,000 | 1,351,411 | |||||
Chicago, Illinois Board of Education 5.00% 4/1/35 | 825,000 | 857,785 | |||||
5.00% 4/1/36 | 320,000 | 332,317 |
61
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Local General Obligation Bonds (continued) | |||||||
Chicago, Illinois Board of Education (Dedicated Revenues) Series C 5.00% 12/1/34 | 2,160,000 | $ | 2,244,802 | ||||
Series D 5.00% 12/1/31 | 2,160,000 | 2,253,031 | |||||
Howard Country, Maryland Consolidated Public Improvement Project Series A 4.00% 8/15/35 | 2,065,000 | 2,169,055 | |||||
Independent School District of Boise City, Ada & Boise Counties, Idaho Series 2019 5.00% 8/1/31 | 1,350,000 | 1,529,942 | |||||
MIDA Golf and Equestrian Center Public Infrastructure District, Utah 144A 4.125% 6/1/36 # | 1,790,000 | 1,533,636 | |||||
144A 4.25% 6/1/41 # | 2,210,000 | 1,834,941 | |||||
New York City, New York Series A 4.00% 8/1/38 | 5,000,000 | 4,937,600 | |||||
Series A 5.00% 8/1/47 | 3,500,000 | 3,753,995 | |||||
Series E 5.00% 8/1/23 | 3,685,000 | 3,774,030 | |||||
Series F-1 5.00% 6/1/34 | 5,000,000 | 5,267,750 | |||||
San Francisco, California Bay Area Rapid Transit District (Election 2004) Series D 5.00% 8/1/31 | 4,000,000 | 4,301,360 | |||||
38,930,734 | |||||||
Pre-Refunded/Escrowed to Maturity Bonds — 3.96% | |||||||
Atlanta, Georgia Water & Wastewater Revenue 5.00% 11/1/35-25 § | 5,000,000 | 5,336,900 | |||||
California State Department of Water Resources (Water System) Series AS 5.00% 12/1/29-24 § | 15,000 | 15,851 | |||||
Unrefunded Series AS 5.00% 12/1/29-24 § | 2,680,000 | 2,839,353 | |||||
Delaware River Port Authority Revenue 5.00% 1/1/30-24 § | 400,000 | 413,976 | |||||
Denton Independent School District, Texas (School Building) Series A 5.00% 8/15/40-25 (PSF) § | 4,000,000 | 4,285,680 | |||||
East Hempfield Township, Pennsylvania Industrial Development Authority (Student Services - Student Housing Project at Millersville University) 5.00% 7/1/39-24 § | 875,000 | 913,728 |
62
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | |||||||
East Hempfield Township, Pennsylvania Industrial Development Authority (Student Services - Student Housing Project at Millersville University) 5.00% 7/1/46-24 § | 1,425,000 | $ | 1,488,070 | ||||
Fort Worth, Texas Independent School District (School Building) 5.00% 2/15/27-24 (PSF) § | 2,000,000 | 2,072,620 | |||||
Golden State, California Tobacco Securitization Corporate Settlement Revenue (Asset-Backed Bonds) Series A-1 5.00% 6/1/26 | 850,000 | 931,481 | |||||
(Asset-Backed Enhanced) Series A 5.00% 6/1/35-25 § | 3,000,000 | 3,210,660 | |||||
Louisiana State Highway Improvement Revenue Series A 5.00% 6/15/29-24 § | 5,195,000 | 5,424,463 | |||||
Pennsylvania State Turnpike Commission Revenue Series C 5.00% 12/1/43-23 § | 4,555,000 | 4,700,532 | |||||
Sacramento, California Water Revenue 5.00% 9/1/26-23 § | 3,160,000 | 3,245,194 | |||||
Southwestern Illinois Development Authority (Memorial Group) 7.125% 11/1/30-23 § | 2,190,000 | 2,305,939 | |||||
Texas State (Transportation Commission Highway Improvement) 5.00% 4/1/29-24 § | 3,000,000 | 3,120,330 | |||||
Virginia Commonwealth Transportation Board (Gans-Garvee) 5.00% 3/15/24-23 § | 2,000,000 | 2,029,060 | |||||
42,333,837 | |||||||
Special Tax Revenue Bonds — 15.55% | |||||||
Allentown, Pennsylvania Neighborhood Improvement Zone Development Authority Revenue (City Center Refunding Project) 144A 5.00% 5/1/42 # | 3,150,000 | 3,207,393 | |||||
Camden County, New Jersey Improvement Authority Revenue (County Capital Program) Series A 5.00% 1/15/40 | 5,000,000 | 5,214,000 |
63
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
Celebration Pointe, Florida Community Development District 4.75% 5/1/24 | 200,000 | $ | 203,508 | ||||
5.00% 5/1/34 | 830,000 | 838,117 | |||||
Connecticut State Transportation Infrastructure Series B 5.00% 10/1/30 | 3,375,000 | 3,796,099 | |||||
Dallas, Texas Convention Center Hotel Development Revenue Series A 5.00% 1/1/24 | 3,420,000 | 3,425,883 | |||||
Series A 5.25% 1/1/23 | 5,375,000 | 5,385,750 | |||||
Denver, Colorado Convention Center Hotel Authority (Senior) 5.00% 12/1/25 | 1,900,000 | 1,992,055 | |||||
5.00% 12/1/26 | 2,500,000 | 2,653,950 | |||||
5.00% 12/1/29 | 600,000 | 631,242 | |||||
5.00% 12/1/31 | 900,000 | 936,738 | |||||
5.00% 12/1/32 | 1,800,000 | 1,863,486 | |||||
5.00% 12/1/34 | 1,500,000 | 1,539,765 | |||||
5.00% 12/1/35 | 1,200,000 | 1,229,196 | |||||
5.00% 12/1/36 | 900,000 | 920,358 | |||||
GDB Debt Recovery Authority of Puerto Rico (Taxable) 7.50% 8/20/40 | 38,325,821 | 34,301,610 | |||||
Harris County-Houston, Texas Sports Authority (Senior Lien) Series A 5.00% 11/15/30 | 1,805,000 | 1,869,276 | |||||
Illinois State, Sales Tax Revenue (Junior Obligation) Series A 4.00% 6/15/31 (BAM) | 2,500,000 | 2,603,400 | |||||
Massachusetts School Building Authority Series C 5.00% 8/15/29 | 1,630,000 | 1,749,495 | |||||
Matching Fund Special Purpose Securitization Corporation, US Virgin Islands Series A 5.00% 10/1/39 | 1,785,000 | 1,853,098 | |||||
Metropolitan Transportation Authority Revenue, New York (Climate Bond Certified) Series B-2 5.00% 11/15/36 | 5,000,000 | 5,379,100 | |||||
Miami-Dade County, Florida Special Obligation Revenue 3.505% 10/1/37 (BAM) ^ | 3,000,000 | 1,596,090 |
64
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Special Tax Revenue Bonds (continued) | |||||||
New York City, New York Transitional Finance Authority Building Aid Revenue Subordinate Subseries S-3A 5.00% 7/15/28 | 4,400,000 | $ | 4,920,960 | ||||
New York City, New York Transitional Finance Authority Future Tax Secured Subseries A-1 5.00% 11/1/23 | 2,865,000 | 2,953,299 | |||||
Subseries B-1 5.00% 8/1/42 | 5,000,000 | 5,175,750 | |||||
Subseries C 5.00% 11/1/27 | 4,150,000 | 4,315,751 | |||||
Subseries E-1 5.00% 2/1/35 | 5,000,000 | 5,383,650 | |||||
New York State Dormitory Authority Revenue Series A 5.00% 3/15/31 | 1,000,000 | 1,054,180 | |||||
New York State Urban Development Revenue (General Purpose) Series A 5.00% 3/15/37 | 2,290,000 | 2,492,482 | |||||
Series B 5.00% 3/15/35 | 5,000,000 | 5,288,450 | |||||
Orange County, California Local Transportation Authority Sales Tax Revenue 5.00% 2/15/39 | 2,000,000 | 2,206,400 | |||||
Public Finance Authority, Wisconsin (American Dream @ Meadowlands Project) 144A 7.00% 12/1/50 # | 1,010,000 | 904,546 | |||||
Puerto Rico Sales Tax Financing Revenue (Capital Appreciation - Restructured) Series A-1 5.60% 7/1/46 ^ | 9,170,000 | 2,626,196 | |||||
(Restructured) Series A-1 4.55% 7/1/40 | 6,015,000 | 6,014,940 | |||||
Series A-1 4.75% 7/1/53 | 13,160,000 | 12,584,908 | |||||
Series A-1 5.00% 7/1/58 | 6,215,000 | 6,029,171 | |||||
Series A-1 6.01% 7/1/51 ^ | 33,441,000 | 7,131,628 | |||||
Series A-2 4.329% 7/1/40 | 8,237,000 | 8,016,743 | |||||
Series A-2 4.329% 7/1/40 | 4,516,000 | 4,395,242 | |||||
Richmond Heights, Missouri Tax Increment & Transaction Sales Tax Revenue Refunding & Improvement (Francis Place Redevelopment Project) 5.625% 11/1/25 | 610,000 | 597,513 | |||||
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 | 1,055,000 | 997,830 | |||||
166,279,248 |
65
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds — 15.55% | |||||||
California State (School Facilities) 5.00% 11/1/30 | 5,000,000 | $ | 5,154,700 | ||||
(Various Purpose) 4.00% 10/1/36 | 3,875,000 | 3,993,304 | |||||
4.00% 10/1/37 | 2,000,000 | 2,054,160 | |||||
5.00% 8/1/26 | 3,120,000 | 3,424,293 | |||||
5.00% 10/1/26 | 2,500,000 | 2,753,575 | |||||
5.00% 8/1/28 | 3,000,000 | 3,418,710 | |||||
5.00% 9/1/30 | 1,715,000 | 1,878,542 | |||||
5.00% 9/1/32 | 4,100,000 | 4,478,389 | |||||
5.00% 9/1/32 | 1,400,000 | 1,645,140 | |||||
5.00% 8/1/33 | 5,000,000 | 5,276,900 | |||||
5.00% 9/1/35 | 8,000,000 | 8,643,360 | |||||
5.00% 9/1/41 | 470,000 | 525,761 | |||||
5.25% 9/1/30 | 5,000,000 | 5,146,050 | |||||
Series C 5.00% 9/1/30 | 5,985,000 | 6,419,990 | |||||
Commonwealth of Massachusetts Series A 5.00% 1/1/35 | 7,500,000 | 8,289,675 | |||||
Series A 5.00% 7/1/37 | 5,000,000 | 5,269,400 | |||||
Commonwealth of Puerto Rico 2.88% 11/1/43 • | 29,611,037 | 15,286,698 | |||||
(Restructured) | |||||||
Series A-1 4.00% 7/1/33 | 2,794,921 | 2,618,869 | |||||
Series A-1 4.00% 7/1/35 | 3,225,895 | 2,966,049 | |||||
Series A-1 4.00% 7/1/37 | 1,582,817 | 1,418,347 | |||||
Series A-1 4.00% 7/1/41 | 4,805,397 | 4,196,601 | |||||
Series A-1 4.00% 7/1/46 | 845,647 | 718,132 | |||||
Series A-1 4.364% 7/1/33 ^ | 1,555,526 | 885,234 | |||||
Series A-1 5.75% 7/1/31 | 2,340,148 | 2,567,283 | |||||
Connecticut State Series F 5.00% 9/15/27 | 2,790,000 | 3,111,352 | |||||
District of Columbia Series C 5.00% 6/1/34 | 5,000,000 | 5,167,450 | |||||
Hawaii State Series FW 4.00% 1/1/34 | 3,010,000 | 3,178,741 | |||||
Illinois State 5.00% 1/1/28 | 1,630,000 | 1,708,305 | |||||
5.00% 11/1/36 | 1,965,000 | 2,027,408 | |||||
5.25% 2/1/30 | 2,410,000 | 2,469,551 | |||||
5.25% 2/1/32 | 1,015,000 | 1,039,238 |
66
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
State General Obligation Bonds (continued) | |||||||
Illinois State 5.50% 5/1/39 | 2,500,000 | $ | 2,716,100 | ||||
Series A 4.00% 3/1/41 | 1,860,000 | 1,715,683 | |||||
Series A 5.125% 12/1/29 | 4,440,000 | 4,745,516 | |||||
Series B 4.00% 10/1/35 | 8,830,000 | 8,477,418 | |||||
Series C 4.00% 10/1/37 | 1,710,000 | 1,620,003 | |||||
Series C 4.00% 10/1/42 | 3,835,000 | 3,499,361 | |||||
Series D 5.00% 11/1/25 | 1,220,000 | 1,278,767 | |||||
(Rebuild Illinois Program) Series B 4.00% 11/1/33 | 2,000,000 | 1,955,820 | |||||
Series B 4.00% 11/1/34 | 1,190,000 | 1,151,837 | |||||
Series B 4.00% 11/1/35 | 2,200,000 | 2,110,526 | |||||
Series B 4.00% 11/1/38 | 1,810,000 | 1,701,509 | |||||
New Jersey State Series A 4.00% 6/1/31 | 3,440,000 | 3,673,817 | |||||
Oregon State (Article XI-Q State Projects) Series A 5.00% 5/1/44 | 5,000,000 | 5,461,900 | |||||
Washington State Series E 5.00% 7/1/31 | 3,000,000 | 3,163,080 | |||||
Series R 4.00% 7/1/29 | 2,000,000 | 2,180,060 | |||||
(Various Purpose) Series 2015-A-1 5.00% 8/1/30 | 3,000,000 | 3,133,920 | |||||
166,316,524 | |||||||
Transportation Revenue Bonds — 15.07% | |||||||
Atlanta, Georgia Department of Aviation Series B 5.00% 7/1/32 (AMT) | 1,000,000 | 1,110,200 | |||||
Series B 5.00% 7/1/33 (AMT) | 2,045,000 | 2,253,467 | |||||
Bay Area, California Toll Authority (San Francisco Bay Area) Series S-7 4.00% 4/1/34 | 1,000,000 | 1,035,020 | |||||
Chicago, Illinois Midway International Airport Series A 5.00% 1/1/28 (AMT) | 1,905,000 | 1,952,187 | |||||
Chicago, Illinois O’Hare International Airport Revenue Series A 5.00% 1/1/37 (AMT) | 5,000,000 | 5,211,950 | |||||
Series B 5.00% 1/1/32 | 1,000,000 | 1,045,780 | |||||
Series B 5.00% 1/1/33 | 1,520,000 | 1,587,108 | |||||
(General-Airport-Senior Lien) Series B 5.00% 1/1/36 | 2,500,000 | 2,705,675 | |||||
Series B 5.00% 1/1/37 | 3,000,000 | 3,227,160 |
67
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
Denver City & County, Colorado Airport System Revenue Series A 4.00% 12/1/43 (AMT) | 7,890,000 | $ | 7,407,448 | ||||
Florida Development Finance Corporation Revenue (Brightline Florida Passenger Rail Expansion Project) Series A 144A 7.25% 7/1/57 (AMT) #, • | 5,900,000 | 5,779,876 | |||||
Foothill-Eastern, California Transportation Corridor Agency Toll Road Revenue (Senior Lien) Series A 4.00% 1/15/46 | 1,000,000 | 944,600 | |||||
Lee County, Florida Airport Revenue 5.00% 10/1/33 | 4,305,000 | 4,533,294 | |||||
Los Angeles, California Department of Airports Series A 5.00% 5/15/33 (AMT) | 845,000 | 923,399 | |||||
Metropolitan Transportation Authority Revenue, New York (Climate Bond Certified) Subseries A-2 4.00% 11/15/41 | 3,000,000 | 2,770,890 | |||||
Metropolitan Washington, D.C. Airports Authority Dulles Toll Road Revenue (Dulles Metrorail and Capital Improvement Projects) Series B 4.00% 10/1/49 | 490,000 | 441,730 | |||||
Miami-Dade County, Florida Aviation Revenue Series B 5.00% 10/1/37 | 5,700,000 | 5,904,915 | |||||
New Jersey State Turnpike Authority Turnpike Revenue Series A 5.00% 1/1/33 | 1,770,000 | 1,911,812 | |||||
Series E 5.00% 1/1/32 | 5,050,000 | 5,551,516 | |||||
New Orleans, Louisiana Aviation Board (North Terminal Project) Series B 5.00% 1/1/32 (AGM) (AMT) | 2,900,000 | 3,000,282 | |||||
Series B 5.00% 1/1/33 (AGM) (AMT) | 2,900,000 | 2,995,613 | |||||
New York State Thruway Authority Series J 5.00% 1/1/27 | 5,705,000 | 5,870,901 | |||||
Series J 5.00% 1/1/32 | 2,500,000 | 2,568,400 | |||||
Series K 5.00% 1/1/31 | 5,000,000 | 5,238,200 |
68
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
New York Transportation Development Special Facilities Revenue (Delta AirLines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) 4.00% 10/1/30 (AMT) | 1,950,000 | $ | 1,923,753 | ||||
5.00% 1/1/33 (AMT) | 790,000 | 815,991 | |||||
5.00% 10/1/35 (AMT) | 1,125,000 | 1,173,060 | |||||
(Terminal 4 John F. Kennedy International Airport Project) 5.00% 12/1/36 (AMT) | 3,000,000 | 3,162,600 | |||||
Oklahoma State Turnpike Authority Revenue Series A 5.00% 1/1/42 | 5,000,000 | 5,294,950 | |||||
Pennsylvania State Turnpike Commission Revenue Series A 5.00% 12/1/48 | 2,500,000 | 2,657,725 | |||||
Series A-1 5.00% 12/1/40 | 1,400,000 | 1,453,690 | |||||
Series A-1 5.00% 12/1/45 | 1,000,000 | 1,029,150 | |||||
Series B 5.00% 12/1/45 | 5,000,000 | 5,175,350 | |||||
Series C 5.00% 12/1/43 | 1,445,000 | 1,468,004 | |||||
Subordinate Series A-1 5.00% 12/1/29 | 3,590,000 | 3,765,228 | |||||
Phoenix, Arizona Civic Improvement Corporation Airport Revenue (Junior Lien) Series A 5.00% 7/1/33 | 3,355,000 | 3,539,391 | |||||
Series B 5.00% 7/1/44 (AMT) | 3,900,000 | 4,049,058 | |||||
Port Authority of Guam Revenue (Governmental) Series A 5.00% 7/1/48 | 225,000 | 236,075 | |||||
Port Authority of New York & New Jersey 5.00% 9/15/25 (AMT) | 7,000,000 | 7,382,970 | |||||
5.00% 10/15/29 (AMT) | 3,105,000 | 3,250,904 | |||||
(194th Series) 5.00% 10/15/32 | 2,500,000 | 2,678,725 | |||||
Regional Transportation District (Denver Transit Partners Eagle P3 Project) Series A 4.00% 7/15/33 | 1,000,000 | 993,590 | |||||
Salt Lake City, Utah Airport Revenue Series A 5.00% 7/1/36 (AMT) | 10,000,000 | 10,513,300 | |||||
Series A 5.00% 7/1/38 (AMT) | 5,000,000 | 5,220,000 | |||||
Series B 5.00% 7/1/31 | 500,000 | 543,150 | |||||
Series B 5.00% 7/1/32 | 600,000 | 648,378 | |||||
Series B 5.00% 7/1/33 | 1,000,000 | 1,077,140 |
69
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Transportation Revenue Bonds (continued) | |||||||
San Diego County, California Regional Airport Authority Revenue Series B 4.00% 7/1/46 (AMT) (BAM) | 2,260,000 | $ | 2,107,992 | ||||
South Jersey Port, New Jersey (Subordinated Marine Terminal) Series B 5.00% 1/1/24 (AMT) | 180,000 | 185,929 | |||||
Series B 5.00% 1/1/25 (AMT) | 390,000 | 403,455 | |||||
Series B 5.00% 1/1/30 (AMT) | 230,000 | 243,147 | |||||
Series B 5.00% 1/1/32 (AMT) | 215,000 | 225,372 | |||||
Series B 5.00% 1/1/33 (AMT) | 705,000 | 734,899 | |||||
Series B 5.00% 1/1/34 (AMT) | 880,000 | 912,217 | |||||
Series B 5.00% 1/1/35 (AMT) | 675,000 | 696,904 | |||||
Series B 5.00% 1/1/36 (AMT) | 660,000 | 678,823 | |||||
Series B 5.00% 1/1/37 (AMT) | 430,000 | 440,754 | |||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien Revenue (NTE Mobility Partners Segments 3 LLC Segment 3A and 3B Facility) 7.00% 12/31/38 (AMT) | 3,750,000 | 3,870,038 | |||||
Wayne County, Michigan Airport Authority Series D 5.00% 12/1/45 (AGM) | 6,300,000 | 6,593,454 | |||||
161,116,589 | |||||||
Water & Sewer Revenue Bonds — 2.18% | |||||||
Broward County, Florida Water & Sewer Utility Revenue Series A 4.00% 10/1/45 | 2,640,000 | 2,559,031 | |||||
Dominion, Colorado Water & Sanitation District 5.25% 12/1/27 | 395,000 | 403,477 | |||||
Great Lakes, Michigan Water Authority Water Supply System Revenue (Senior Lien Bond) Series C 5.00% 7/1/31 | 3,000,000 | 3,236,520 | |||||
New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue (General Resolution) Series EE 5.00% 6/15/39 | 5,000,000 | 5,288,050 | |||||
Sacramento County, California Sanitation Districts Financing Authority Revenue Series A 5.00% 12/1/50 | 2,500,000 | 2,741,450 | |||||
San Antonio, Texas Water System Revenue Series A 5.00% 5/15/32 | 1,500,000 | 1,636,365 | |||||
Series A 5.00% 5/15/33 | 2,250,000 | 2,445,862 |
70
Principal amount° | Value (US $) | ||||||
Municipal Bonds (continued) | |||||||
Water & Sewer Revenue Bonds (continued) | |||||||
Tampa, Florida Water & Wastewater System Revenue Series A 5.00% 10/1/52 | 4,500,000 | $ | 4,995,045 | ||||
23,305,800 | |||||||
Total Municipal Bonds (cost $1,058,357,086) | 1,031,601,370 | ||||||
Short-Term Investments — 2.83% | |||||||
Variable Rate Demand Notes — 2.83%¤ | |||||||
Arizona Health Facilities Authority Revenue (Banner Health) Series C 1.03% 1/1/46 (LOC - Bank of America, N.A.) | 150,000 | 150,000 | |||||
Los Angeles, California Department of Water & Power System Revenue Series A-2 0.80% 7/1/51 (SPA - TD Bank N.A.) | 1,335,000 | 1,335,000 | |||||
Series A-2 0.85% 7/1/51 (SPA - Royal Bank of Canada) | 8,025,000 | 8,025,000 | |||||
Series B4 0.85% 7/1/35 (SPA - Barclays Bank) | 800,000 | 800,000 | |||||
(Power System) Subordinate Series A-1 0.85% 7/1/50 (SPA - Royal Bank of Canada) | 1,000,000 | 1,000,000 | |||||
Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue (Allina Health System) Series B-2 1.03% 11/15/35 (LOC – JPMorgan Chase Bank N.A.) | 2,900,000 | 2,900,000 | |||||
Mississippi Business Finance Corporation Gulf Opportunity Zone Industrial Development Revenue (Chevron U.S.A. Inc. Project) Series L 1.00% 11/1/35 | 1,275,000 | 1,275,000 | |||||
Mississippi Development Bank 1.00% 12/1/39 | 1,000,000 | 1,000,000 | |||||
New York City Transitional Finance Authority Future Tax Secured Revenue Series B-3 1.08% 11/1/42 (SPA - Barclays Bank) | 5,800,000 | 5,800,000 | |||||
New York City, New York Fiscal 2019 Series D 1.08% 12/1/47 (SPA - Barclays Bank) | 600,000 | 600,000 | |||||
Series F-5 1.08% 6/1/44 (SPA - Barclays Bank) | 1,700,000 | 1,700,000 |
71
Schedules of investments
Delaware Tax-Free USA Intermediate Fund
Principal amount° | Value (US $) | ||||||
Short-Term Investments (continued) | |||||||
Variable Rate Demand Notes (continued) | |||||||
New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue Fiscal 2008 Series BB-5 1.03% 6/15/33 (SPA - Bank of America, N.A.) | 1,680,000 | $ | 1,680,000 | ||||
Subseries A-2 1.03% 6/15/44 (SPA - Mizuho Bank) | 700,000 | 700,000 | |||||
Oregon State Facilities Authority Revenue (PeaceHealth) Series B 1.02% 8/1/34 (LOC - TD Bank N.A.) | 500,000 | 500,000 | |||||
Phoenix, Arizona Industrial Development Authority (Mayo Clinic) Series B 0.98% 11/15/52 (SPA - Northern Trust) | 1,450,000 | 1,450,000 | |||||
University of Michigan Revenue (General Revenue) Series D-1 0.98% 12/1/24 | 1,300,000 | 1,300,000 | |||||
Total Short-Term Investments (cost $30,215,000) | 30,215,000 | ||||||
Total Value of Securities—99.31% (cost $1,088,572,086) | $ | 1,061,816,370 |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2022, the aggregate value of Rule 144A securities was $66,751,811, which represents 6.24% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
‡ | Non-income producing security. Security is currently in default. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 10 in “Notes to financial statements.” |
72
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2022. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
ICE – Intercontinental Exchange, Inc.
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
LOC – Letter of Credit
N.A. – National Association
NATL – Insured by National Public Finance Guarantee Corporation
PSF – Guaranteed by Permanent School Fund
SPA – Stand-by Purchase Agreement
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
73
Schedules of investments | |
Delaware National High-Yield Municipal Bond Fund | August 31, 2022 |
Principal amount° | Value (US $) | |||||||
Municipal Bonds — 97.86% | ||||||||
Corporate Revenue Bonds — 22.87% | ||||||||
Allegheny County, Pennsylvania
Industrial Development Authority Revenue (Environmental Improvement - US Steel Corporation Project) 5.75% 8/1/42 (AMT) | 2,000,000 | $ | 2,000,380 | |||||
Arizona Industrial Development Authority
Revenue (Legacy Cares, Inc. Project) Series A 144A 6.00% 7/1/51 # | 1,190,000 | 1,082,722 | ||||||
Series A 144A 7.75% 7/1/50 # | 20,330,000 | 21,649,620 | ||||||
Buckeye, Ohio Tobacco Settlement Financing Authority (Asset-Backed Senior) Series B-2 5.00% 6/1/55 | 64,020,000 | 60,977,129 | ||||||
(Senior) Series A-2 3.00% 6/1/48 | 1,775,000 | 1,316,660 | ||||||
Calhoun County Navigation Industrial Development Authority (Max Midstream Texas, LLC Project) Series A 144A 3.625% 7/1/26 (AMT) # | 3,285,000 | 2,995,033 | ||||||
California County Tobacco Securitization
Agency Settlement Revenue (Capital Appreciation Bond - Fresno County Tobacco Funding Corporation) 0.83% 6/1/55 ^ | 100,000,000 | 8,291,000 | ||||||
California Pollution Control Financing
Authority Revenue (Calplant I Project) | ||||||||
144A 7.50% 7/1/32 (AMT) #, ‡ | 1,600,000 | 1,088,000 | ||||||
144A 8.00% 7/1/39 (AMT) #, ‡ | 5,250,000 | 3,150,000 | ||||||
Children’s Trust Fund, Puerto Rico (Asset-Backed) Series B 0.485% 5/15/57 ^ | 3,420,000 | 166,349 | ||||||
District of Columbia Tobacco Settlement
Financing (Capital Appreciation-Asset-Backed) Series D 0.122% 6/15/55 ^ | 250,000,000 | 19,587,500 | ||||||
Erie, New York Tobacco Asset Securitization (Asset-Backed) Series A 144A 1.504% 6/1/60 #, ^ | 196,565,000 | 11,263,174 | ||||||
Florida Development Finance Corporation
Surface Transportation Facility Revenue (Brightline Passenger Rail Project) Series B 144A 7.375% 1/1/49 (AMT) # | 14,040,000 | 13,393,177 |
74
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Florida Development Finance Corporation
Surface Transportation Facility Revenue (Virgin Trains USA Passenger Rail Project) | ||||||||
Series A 144A 6.25% 1/1/49 (AMT) #, • | 4,000,000 | $ | 3,839,200 | |||||
Series A 144A 6.50% 1/1/49 (AMT) #, • | 8,905,000 | 8,087,076 | ||||||
George L Smith II Georgia World Congress
Center Authority (Convention Center Hotel 2nd Tier) Series B 144A 5.00% 1/1/54 # | 5,000,000 | 4,276,300 | ||||||
Golden State Tobacco Securitization Settlement Revenue, California Series B-2 0.558% 6/1/66 ^ | 57,500,000 | 6,799,950 | ||||||
Hoover, Alabama Industrial Development
Board (United States Steel Corporation Project) 5.75% 10/1/49 (AMT) | 10,250,000 | 10,672,197 | ||||||
Houston, Texas Airport System Revenue Series B-1 5.00% 7/15/35 (AMT) | 3,000,000 | 2,999,820 | ||||||
(Special Facilities Continental Airlines,
Inc. Terminal Improvements Projects) Series 2011 6.625% 7/15/38 (AMT) | 2,000,000 | 2,004,660 | ||||||
(United Airlines Inc.) 5.00% 7/1/29 (AMT) | 1,150,000 | 1,155,509 | ||||||
Indiana Finance Authority Exempt Facility
Revenue (Polyflow Indiana Project - Green Bond) 144A 7.00% 3/1/39 (AMT) # | 7,035,000 | 5,618,503 | ||||||
Inland, California Empire Tobacco Securitization (Capital Appreciation-Asset-Backed) Series E 144A 0.94% 6/1/57 #, ^ | 376,610,000 | 21,447,939 | ||||||
Series F 144A 1.271% 6/1/57 #, ^ | 238,790,000 | 11,395,059 | ||||||
Iowa Finance Authority (Iowa Fertilizer Company Project) 5.00% 12/1/50 • | 6,185,000 | 6,344,202 | ||||||
Lower Alabama Gas District (Gas Project Revenue Bonds) Series A 5.00% 9/1/46 | 4,910,000 | 5,127,218 | ||||||
Main Street Natural Gas Project Revenue,
Georgia Series A 4.00% 5/15/39 | 3,000,000 | 2,779,740 | ||||||
Series A 5.50% 9/15/23 | 40,000 | 40,900 | ||||||
Maine Finance Authority Revenue (Go Lab Madison, LLC Project) 144A 8.00% 12/1/51 (AMT) # | 10,950,000 | 8,823,510 |
75
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Maricopa County, Arizona Industrial
Development Authority (Commercial Metals Company Project) 144A 4.00% 10/15/47 (AMT) # | 3,750,000 | $ | 3,265,200 | |||||
Michigan Finance Authority Limited Obligation Revenue Series B-2 4.97% 6/1/65 ^ | 10,000,000 | 1,025,100 | ||||||
Monroe, New York Tobacco Asset Securitization (4th Subordinate - Capital Appreciation - Asset-Backed) Series A 144A 0.186% 6/1/61 #, ^ | 487,500,000 | 18,734,625 | ||||||
Nevada State Department of Business &
Industry (Green Fulcrum Sierra Biofuels Project) 144A 6.25% 12/15/37 (AMT) # | 2,500,000 | 2,323,125 | ||||||
New Jersey Economic Development Authority
Special Facility Revenue (Continental Airlines Project) 5.25% 9/15/29 (AMT) | 4,000,000 | 4,044,360 | ||||||
Series B 5.625% 11/15/30 (AMT) | 1,270,000 | 1,306,170 | ||||||
New Jersey Tobacco Settlement Financing Corporation Series B 5.00% 6/1/46 | 4,440,000 | 4,474,898 | ||||||
New York City, New York Industrial Development Agency (Queens Baseball Stadium Project) Series A 2.00% 1/1/38 (AGM) | 500,000 | 351,070 | ||||||
New York Liberty Development Revenue (Goldman Sachs Headquarters) 5.25% 10/1/35 | 360,000 | 402,775 | ||||||
New York Transportation Development (American Airlines Inc. John F. Kennedy International Airport Project) 5.00% 12/1/37 (AMT) | 2,455,000 | 2,583,838 | ||||||
5.375% 8/1/36 (AMT) | 1,000,000 | 1,077,680 | ||||||
Pennsylvania Economic Development Financing Authority (National Gypsum) 5.50% 11/1/44 (AMT) | 4,500,000 | 4,522,365 | ||||||
Port of Seattle, Washington Industrial
Development Corporation Special Facilities Revenue (Delta Airlines) 5.00% 4/1/30 (AMT) | 2,000,000 | 2,012,200 |
76
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Public Authority for Colorado
Energy Natural Gas Revenue Series 28 6.50% 11/15/38 | 2,000,000 | $ | 2,440,460 | |||||
Public Finance Authority Revenue, Wisconsin (Grand Hyatt San Antonio Hotel Acquisition Project) Series A 5.00% 2/1/62 | 6,235,000 | 6,402,846 | ||||||
Salt Verde, Arizona Financial Senior Gas
Revenue 5.00% 12/1/37 | 9,250,000 | 9,767,537 | ||||||
5.25% 12/1/27 | 2,235,000 | 2,406,648 | ||||||
5.25% 12/1/28 | 1,050,000 | 1,138,190 | ||||||
5.50% 12/1/29 | 765,000 | 844,445 | ||||||
San Diego, California Tobacco Settlement
Revenue Funding Series C 4.00% 6/1/32 | 575,000 | 568,566 | ||||||
Shoals, Indiana (National Gypsum Co. Project) 7.25% 11/1/43 (AMT) | 1,860,000 | 1,901,273 | ||||||
St. James Parish, Louisiana (NuStar Logistics, LP Project) 144A 6.10% 6/1/38 #, • | 1,000,000 | 1,106,350 | ||||||
144A 6.35% 7/1/40 # | 3,600,000 | 3,991,500 | ||||||
Series B 144A 6.10% 12/1/40 #, • | 1,630,000 | 1,803,351 | ||||||
Tennessee State Energy Acquisition Gas
Revenue Series C 5.00% 2/1/27 | 2,940,000 | 3,090,557 | ||||||
Tobacco Securitization Authority of Southern California (Capital Appreciation-3rd Subordinate Lien) Series D 2.609% 6/1/46 ^ | 2,230,000 | 274,402 | ||||||
TSASC, New York Series A 5.00% 6/1/41 | 705,000 | 731,099 | ||||||
Tulsa, Oklahoma Municipal Airports Improvement Trust Revenue Series A 5.50% 6/1/35 (AMT) | 2,000,000 | 2,026,160 | ||||||
Tuscaloosa County, Alabama Industrial Development Authority (Hunt Refining Project) Series A 144A 5.25% 5/1/44 # | 9,870,000 | 9,034,011 | ||||||
Valparaiso, Indiana (Pratt Paper LLC Project) 7.00% 1/1/44 (AMT) | 3,065,000 | 3,188,428 |
77
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Corporate Revenue Bonds (continued) | ||||||||
Virginia Tobacco Settlement
Financing Corporation Series A-1 6.706% 6/1/46 | 7,870,000 | $ | 7,426,211 | |||||
Series B-1 5.00% 6/1/47 | 2,000,000 | 2,000,020 | ||||||
Series C 2.949% 6/1/47 ^ | 95,170,000 | 23,512,700 | ||||||
Series D 2.20% 6/1/47 ^ | 179,085,000 | 42,779,825 | ||||||
Washington Economic Development Finance Authority Revenue (Columbia Pulp I, LLC Project) Series 2017A 144A 7.50% 1/1/32 (AMT) #, ‡ | 4,800,000 | 2,880,000 | ||||||
423,810,512 | ||||||||
Education Revenue Bonds — 15.38% | ||||||||
Arizona Industrial Development Authority
Revenue (ACCEL Schools Project) Series A 144A 5.25% 8/1/48 # | 3,200,000 | 3,159,648 | ||||||
(American Charter Schools Foundation Project) 144A 6.00% 7/1/37 # | 1,205,000 | 1,277,770 | ||||||
144A 6.00% 7/1/47 # | 4,735,000 | 4,971,513 | ||||||
(Basis Schools Projects) Series A 144A 5.125% 7/1/37 # | 750,000 | 766,808 | ||||||
(Empower College Prep Project) 144A 6.00% 7/1/49 # | 1,000,000 | 1,016,680 | ||||||
(Kaizen Education Foundation Project) 144A 5.80% 7/1/52 # | 4,000,000 | 4,153,720 | ||||||
(Leman Academy Of Excellence Projects) Series A 4.50% 7/1/54 | 5,000,000 | 4,434,400 | ||||||
(Pinecrest Academy Nevada-Horizon, Inspirada) Series A 144A 5.75% 7/15/48 # | 2,250,000 | 2,357,662 | ||||||
Arlington, Texas Higher Education Finance (KIPP Texas, Inc.) 3.00% 8/15/49 (PSF) | 4,000,000 | 3,036,080 | ||||||
Build NYC Resource, New York 5.00% 11/1/39 | 1,000,000 | 1,003,790 | ||||||
(Inwood Academy for Leadership Charter
School Project) Series A 144A 5.125% 5/1/38 # | 575,000 | 590,151 | ||||||
Series A 144A 5.50% 5/1/48 # | 1,500,000 | 1,549,170 | ||||||
(New Dawn Charter Schools Project) 144A 5.625% 2/1/39 # | 1,290,000 | 1,314,136 | ||||||
144A 5.75% 2/1/49 # | 2,700,000 | 2,742,390 | ||||||
Burbank, Illinois (Intercultural Montessori Language) 144A 6.25% 9/1/45 # | 4,000,000 | 4,063,120 |
78
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
California Community College
Financing Authority Student Housing Revenue (Napa Valley College Project) Series A 144A 5.75% 7/1/60 # | 8,250,000 | $ | 7,930,230 | |||||
California Educational Facilities Authority
Revenue (Stanford University) Series V-1 5.00% 5/1/49 | 24,445,000 | 29,000,815 | ||||||
Series V-2 2.25% 4/1/51 | 3,975,000 | 2,515,618 | ||||||
California Municipal Finance Authority
Revenue (California Baptist University) Series A 144A 5.50% 11/1/45 # | 4,000,000 | 4,172,760 | ||||||
(Julian Charter School Project) Series A 144A 5.625% 3/1/45 # | 5,250,000 | 5,193,825 | ||||||
(Partnership Uplift Community Project) Series A 5.25% 8/1/42 | 1,700,000 | 1,667,003 | ||||||
California Public Finance Authority (Crossroads Christian School Project) 144A 5.00% 1/1/56 # | 2,000,000 | 1,718,060 | ||||||
California School Finance Authority (Aspire Public Schools) Series A 144A 5.00% 8/1/35 # | 585,000 | 597,630 | ||||||
Series A 144A 5.00% 8/1/40 # | 605,000 | 614,952 | ||||||
(Encore Education Obligated Group) Series A 144A 5.00% 6/1/52 # | 1,000,000 | 756,080 | ||||||
(Escuela Popular Project) 144A 6.50% 7/1/50 # | 2,500,000 | 2,560,925 | ||||||
(John Adams Academies - Obligated Group) Series A 144A 5.125% 7/1/62 # | 1,680,000 | 1,591,447 | ||||||
(New Designs Charter School) Series A 5.50% 6/1/42 | 1,750,000 | 1,751,242 | ||||||
(Sonoma County Junior College District
Project) Series A 144A 4.00% 11/1/41 # | 2,980,000 | 2,546,023 | ||||||
Series A 144A 4.00% 11/1/55 # | 2,500,000 | 1,946,500 | ||||||
(View Park Elementary & Middle Schools) Series A 5.875% 10/1/44 | 1,000,000 | 1,029,370 | ||||||
Series A 6.00% 10/1/49 | 720,000 | 742,486 | ||||||
California Statewide Communities Development Authority Charter School Revenue (Green Dot Public Schools) Series A 7.25% 8/1/41 | 1,915,000 | 1,920,439 |
79
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
California Statewide Communities
Development Authority Revenue (Lancer Educational Student Housing Project) Series A 144A 5.00% 6/1/46 # | 1,500,000 | $ | 1,467,240 | |||||
Capital Trust Agency, Florida (Pineapple Cove Classical Academy Inc. Project) Series A 144A 5.375% 7/1/54 # | 6,000,000 | 5,967,780 | ||||||
(The Pepin Academies Inc. Project) Series A 5.75% 7/1/55 | 2,625,000 | 2,415,289 | ||||||
(University Bridge, LLC Student Housing
Project) Series A 144A 5.25% 12/1/58 # | 8,000,000 | 7,628,320 | ||||||
Chester County, Pennsylvania Industrial
Development Authority Student Housing Revenue (West Chester University of Pennsylvania) Series A 5.00% 8/1/30 | 2,200,000 | 2,209,262 | ||||||
Colorado Educational & Cultural Facilities
Authority Revenue (Charter School - Community Leadership Academy) 7.45% 8/1/48 | 2,000,000 | 2,057,560 | ||||||
(Charter School - Loveland Classical School) 144A 5.00% 7/1/46 # | 1,500,000 | 1,431,585 | ||||||
(Global Village Academy - Northglenn Project) 144A 5.00% 12/1/40 # | 1,110,000 | 1,029,592 | ||||||
144A 5.00% 12/1/55 # | 1,720,000 | 1,493,183 | ||||||
(Skyview Charter School) 144A 5.375% 7/1/44 # | 500,000 | 503,460 | ||||||
Florida Development Finance Corporation
Surface Transportation Facility Revenue (Cornerstone Charter Academy Project) 144A 5.125% 10/1/52 # | 4,110,000 | 4,005,236 | ||||||
144A 5.25% 10/1/56 # | 1,900,000 | 1,849,935 | ||||||
(Mater Academy Projects) Series A 4.00% 6/15/52 | 1,145,000 | 980,647 | ||||||
Series A 5.00% 6/15/56 | 1,630,000 | 1,648,305 | ||||||
Hawaii State Department of Budget &
Finance (Hawaii Pacific University) Series A 144A 6.875% 7/1/43 # | 2,000,000 | 2,024,780 | ||||||
Henderson, Nevada Public Improvement Trust (Touro College & University System) Series A 5.50% 1/1/39 | 560,000 | 565,712 |
80
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
Idaho Housing & Finance
Association (Compass Public Charter School) Series A 144A 5.00% 7/1/54 # | 860,000 | $ | 855,863 | |||||
(Idaho Arts Charter School) 144A 5.00% 12/1/36 # | 710,000 | 724,683 | ||||||
(North Star Charter School) Capital Appreciation Subordinate Series B 144A 4.88% 7/1/49 #, ^ | 2,888,155 | 527,261 | ||||||
Series A 6.75% 7/1/48 | 529,150 | 561,148 | ||||||
(Xavier Charter School Project) Series A 5.00% 6/1/50 | 1,000,000 | 1,004,410 | ||||||
Illinois Finance Authority Charter School
Revenue (Chicago International Charter School Project) 5.00% 12/1/47 | 2,965,000 | 2,999,839 | ||||||
Illinois Finance Authority Revenue (Acero Charter Schools) 144A 4.00% 10/1/42 # | 2,245,000 | 1,947,987 | ||||||
(Rogers Park Montessori) 6.00% 2/1/34 | 675,000 | 688,034 | ||||||
6.125% 2/1/45 | 1,800,000 | 1,828,674 | ||||||
Illinois Finance Authority Student Housing
& Academic Facility Revenue (University of Illinois at Chicago Project) Series A 5.00% 2/15/47 | 3,640,000 | 3,496,002 | ||||||
Kent County, Delaware Student Housing and
Dining Facilities Revenue (Delaware State University Project) Series A 5.00% 7/1/58 | 1,250,000 | 1,152,525 | ||||||
Louisiana Public Facilities Authority Revenue (Jefferson Rise Charter School Project) Series A 144A 6.25% 6/1/52 # | 1,000,000 | 1,004,550 | ||||||
Series A 144A 6.375% 6/1/62 # | 1,330,000 | 1,331,144 | ||||||
(Lake Charles Charter Academy Foundation Project) 8.00% 12/15/41 | 1,500,000 | 1,503,405 | ||||||
(Lincoln Preparatory School Project) Series A 144A 5.25% 6/1/60 # | 2,000,000 | 1,744,700 | ||||||
Series A 144A 6.375% 6/1/52 # | 1,000,000 | 1,009,540 | ||||||
Series A 144A 6.50% 6/1/62 # | 2,000,000 | 2,012,980 |
81
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
Macomb County, Michigan State
Public School Academy Revenue (Academy Of Warren) Series A 144A 5.50% 5/1/50 # | 1,810,000 | $ | 1,540,002 | |||||
Macon-Bibb County, Georgia Urban Development Authority Revenue (Academy for Classical Education) Series A 144A 5.875% 6/15/47 # | 1,680,000 | 1,712,390 | ||||||
Series A 144A 6.00% 6/15/52 # | 1,530,000 | 1,567,470 | ||||||
Massachusetts Development Finance Agency Revenue Series V 5.00% 7/1/55 | 9,500,000 | 11,028,455 | ||||||
Miami-Dade County, Florida Industrial Development Authority (Youth Co-Op Charter School) Series A 144A 5.75% 9/15/35 # | 1,000,000 | 1,019,730 | ||||||
Series A 144A 6.00% 9/15/45 # | 1,000,000 | 1,018,370 | ||||||
Michigan Finance Authority Limited Obligation Revenue (Landmark Academy Project) 5.00% 6/1/45 | 2,000,000 | 1,817,860 | ||||||
(Public School Academy Old Redford) Series A 6.50% 12/1/40 | 900,000 | 899,874 | ||||||
Nevada State Department of Business &
Industry (Somerset Academy) Series A 144A 5.00% 12/15/35 # | 1,595,000 | 1,614,220 | ||||||
Series A 144A 5.125% 12/15/45 # | 2,515,000 | 2,540,150 | ||||||
New Jersey State Higher Education Student Assistance Authority Student Loan Revenue Series 1B 5.75% 12/1/39 (AMT) | 1,250,000 | 1,256,950 | ||||||
New York State Dormitory Authority (Columbia University) Series A 5.00% 10/1/50 | 1,965,000 | 2,326,776 | ||||||
Philadelphia, Pennsylvania Authority for
Industrial Development Revenue (1st Philadelphia Preparatory) Series A 7.25% 6/15/43 | 1,230,000 | 1,302,939 | ||||||
(Tacony Academy Charter School Project) 7.00% 6/15/43 | 1,540,000 | 1,579,732 |
82
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
Phoenix, Arizona Industrial
Development Authority Education Revenue (Basic Schools Project) Series 2015A 144A 5.00% 7/1/46 # | 4,000,000 | $ | 4,019,600 | |||||
Series 2016A 144A 5.00% 7/1/45 # | 2,000,000 | 2,010,860 | ||||||
(Downtown Phoenix Student Housing, LLC-Arizona State University Project) Series A 5.00% 7/1/42 | 1,000,000 | 1,008,480 | ||||||
(Eagle College Preparatory Project) Series A 5.00% 7/1/43 | 450,000 | 449,969 | ||||||
Pima County, Arizona Industrial Development Authority Education Revenue (American Leadership Academy Project) 144A 4.00% 6/15/57 # | 500,000 | 381,120 | ||||||
144A 4.00% 6/15/57 # | 4,000,000 | 3,048,960 | ||||||
(Career Success Schools Project) 144A 5.50% 5/1/40 # | 500,000 | 484,585 | ||||||
144A 5.75% 5/1/50 # | 2,530,000 | 2,461,513 | ||||||
(Edkey Charter Schools Project) 144A 5.00% 7/1/49 # | 2,500,000 | 2,372,050 | ||||||
144A 5.00% 7/1/55 # | 2,500,000 | 2,324,575 | ||||||
Pottsboro, Texas Higher Education Finance
Authority Revenue Series A 5.00% 8/15/36 | 755,000 | 754,977 | ||||||
Series A 5.00% 8/15/46 | 1,000,000 | 967,430 | ||||||
Public Finance Authority Revenue, Wisconsin (Goodwill Industries of Southern Nevada Project) Series A 5.50% 12/1/38 | 2,572,956 | 2,260,522 | ||||||
Series A 5.75% 12/1/48 | 2,576,272 | 2,186,430 | ||||||
(Minnesota College of Osteopathic Medicine) Series A-1 144A 5.50% 12/1/48 #, ‡ | 125,529 | 38,914 | ||||||
Subordinate Series B 144A 7.75% 12/1/48 #, • | 2,500,000 | 25,000 | ||||||
(Wilson Preparatory Academy) Series A 144A 4.125% 6/15/29 # | 435,000 | 434,082 | ||||||
Series A 144A 5.00% 6/15/39 # | 500,000 | 509,975 | ||||||
Series A 144A 5.00% 6/15/49 # | 1,100,000 | 1,113,519 | ||||||
South Carolina Jobs-Economic Development Authority Educational Facilities Revenue (Green Charter Schools Project) Series A 144A 4.00% 6/1/36 # | 1,000,000 | 889,440 | ||||||
Series A 144A 4.00% 6/1/46 # | 1,150,000 | 941,218 | ||||||
Series A 144A 4.00% 6/1/56 # | 1,530,000 | 1,171,842 |
83
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Education Revenue Bonds (continued) | ||||||||
South Carolina Jobs-Economic
Development Authority Educational Facilities Revenue (High Point Academy Project) Series A 144A 5.75% 6/15/49 # | 5,000,000 | $ | 5,215,050 | |||||
St. Louis, Missouri Industrial Development
Authority Tax Increment Revenue Improvement (Confluence Academy Project) Series A 144A 5.625% 6/15/53 # | 4,805,000 | 4,591,706 | ||||||
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 | 2,288,845 | ||||||
University of Texas System Board of Regents Series B 5.00% 8/15/49 | 25,425,000 | 29,909,461 | ||||||
University of Virginia Series A 2.18% 11/1/51 | 10,000,000 | 6,046,700 | ||||||
Upper Dauphin Industrial Development Authority (Pennsylvania Steam Academy Charter School Project) Series A 144A 6.25% 7/1/57 # | 2,400,000 | 2,372,856 | ||||||
Utah State Charter School Finance Authority
Revenue (Leadership Learning Academy Project) Series A 144A 5.00% 6/15/39 # | 1,000,000 | 979,900 | ||||||
Series A 144A 5.00% 6/15/50 # | 2,200,000 | 2,067,912 | ||||||
Wisconsin Public Finance Authority Revenue (Pine Lake Preparatory) 144A 5.50% 3/1/45 # | 3,460,000 | 3,496,987 | ||||||
Yonkers, New York Economic Development Corporation Education Revenue (Lamartine/Warburton LLC - Charter School of Educational Excellence Project) Series A 5.00% 10/15/54 | 465,000 | 442,178 | ||||||
284,854,648 | ||||||||
Electric Revenue Bonds — 4.02% | ||||||||
Build NYC Resource, New York (Brooklyn Navy Yard Cogeneration Partners, L.P. Project) 144A 5.25% 12/31/33 (AMT) # | 4,520,000 | 4,268,598 | ||||||
Guam Power Authority Revenue Series A 5.00% 10/1/41 | 2,350,000 | 2,464,774 | ||||||
Series A 5.00% 10/1/42 | 2,000,000 | 2,091,420 | ||||||
Series A 5.00% 10/1/43 | 2,650,000 | 2,763,420 |
84
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Electric Revenue Bonds (continued) | ||||||||
Guam Power Authority Revenue Series A 5.00% 10/1/44 | 5,000,000 | $ | 5,202,150 | |||||
Puerto Rico Electric Power Authority Revenue Series A 5.00% 7/1/42 ‡ | 8,615,000 | 6,999,687 | ||||||
Series A 5.05% 7/1/42 ‡ | 4,590,000 | 3,717,900 | ||||||
Series A 6.75% 7/1/36 ‡ | 1,500,000 | 1,267,500 | ||||||
Series AAA 5.25% 7/1/25 ‡ | 925,000 | 751,563 | ||||||
Series AAA 5.25% 7/1/26 ‡ | 1,030,000 | 836,875 | ||||||
Series AAA 5.25% 7/1/27 ‡ | 5,330,000 | 4,330,625 | ||||||
Series AAA 5.25% 7/1/28 ‡ | 1,205,000 | 979,063 | ||||||
Series CCC 5.25% 7/1/27 ‡ | 5,525,000 | 4,489,062 | ||||||
Series TT 5.00% 7/1/37 ‡ | 1,500,000 | 1,218,750 | ||||||
Series WW 5.00% 7/1/28 ‡ | 3,405,000 | 2,766,563 | ||||||
Series WW 5.25% 7/1/25 ‡ | 1,530,000 | 1,243,125 | ||||||
Series WW 5.25% 7/1/33 ‡ | 830,000 | 674,375 | ||||||
Series WW 5.50% 7/1/38 ‡ | 9,325,000 | 7,611,531 | ||||||
Series XX 4.75% 7/1/26 ‡ | 920,000 | 744,050 | ||||||
Series XX 5.25% 7/1/40 ‡ | 9,795,000 | 7,958,437 | ||||||
Series XX 5.75% 7/1/36 ‡ | 5,840,000 | 4,788,800 | ||||||
Series ZZ 4.75% 7/1/27 ‡ | 760,000 | 614,650 | ||||||
Series ZZ 5.25% 7/1/24 ‡ | 1,275,000 | 1,035,938 | ||||||
Series ZZ 5.25% 7/1/26 ‡ | 7,005,000 | 5,691,562 | ||||||
74,510,418 | ||||||||
Healthcare Revenue Bonds — 16.35% | ||||||||
Apple Valley, Minnesota (Senior Living, LLC Project 2nd Tier) Series B 5.00% 1/1/47 | 2,375,000 | 1,472,049 | ||||||
Series B 5.25% 1/1/37 | 420,000 | 307,511 | ||||||
(Senior Living, LLC Project 4th Tier) Series D 7.25% 1/1/52 | 7,410,000 | 4,879,930 | ||||||
Arizona Industrial Development Authority
Revenue (Great Lakes Senior Living Communities LLC Project 1st Tier) Series A 5.00% 1/1/54 | 2,595,000 | 1,751,080 | ||||||
(Great Lakes Senior Living Communities
LLC Project 2nd Tier) Series B 5.00% 1/1/49 | 975,000 | 618,257 | ||||||
Series B 5.125% 1/1/54 | 1,130,000 | 707,561 |
85
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Arizona Industrial Development
Authority Revenue (Great Lakes Senior Living Communities LLC Project 3rd Tier) Series C 144A 5.00% 1/1/49 # | 1,000,000 | $ | 582,890 | |||||
(Great Lakes Senior Living Communities
LLC Project 4th Tier) Series D 144A 7.25% 1/1/54 # | 2,500,000 | 1,590,175 | ||||||
Berks County, Pennsylvania Industrial Development Authority Revenue (Tower Health Project) 5.00% 11/1/50 | 5,105,000 | 3,830,945 | ||||||
Birmingham, Alabama Special Care Facilities Financing Authority (Methodist Home for the Aging) 5.50% 6/1/30 | 1,850,000 | 1,817,829 | ||||||
5.75% 6/1/35 | 1,500,000 | 1,474,605 | ||||||
5.75% 6/1/45 | 2,500,000 | 2,369,325 | ||||||
6.00% 6/1/50 | 2,650,000 | 2,552,771 | ||||||
California Educational Facilities Authority
Revenue (Stanford University) Series V-2 5.00% 4/1/51 | 1,000,000 | 1,189,860 | ||||||
California Health Facilities Financing
Authority Revenue (Kaiser Permanente) Series A-2 5.00% 11/1/47 | 4,870,000 | 5,543,229 | ||||||
California Municipal Finance Authority
Revenue (Community Health System Project) Series A 3.00% 2/1/46 (AGM) | 10,000,000 | 7,875,700 | ||||||
(Goodwill Industry Sacramento Valley and
Northern Nevada Project) 5.25% 1/1/45 | 1,295,000 | 1,060,566 | ||||||
Series A 144A 6.625% 1/1/32 # | 500,000 | 500,020 | ||||||
Series A 144A 6.875% 1/1/42 # | 1,500,000 | 1,491,300 | ||||||
(Northbay Healthcare Group) Series A 5.25% 11/1/47 | 500,000 | 508,505 | ||||||
California Statewide Communities Development Authority Revenue (Loma Linda University Medical Center) Series A 144A 5.50% 12/1/58 # | 5,000,000 | 5,060,050 | ||||||
Camden County, New Jersey Improvement Authority Revenue (Cooper Health System Obligation Group) 5.75% 2/15/42 | 2,050,000 | 2,069,414 |
86
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Capital Trust Agency, Florida (Elim Senior Housing Inc. Project) 144A 5.875% 8/1/52 # | 2,500,000 | $ | 1,844,175 | |||||
Clackamas County, Oregon Hospital Facility
Authority (Rose Villa Project) Series A 5.25% 11/15/50 | 1,000,000 | 958,770 | ||||||
Series A 5.375% 11/15/55 | 1,000,000 | 967,610 | ||||||
Colorado Health Facilities Authority Revenue (Aberdeen Ridge) Series A 5.00% 5/15/58 | 500,000 | 414,115 | ||||||
(American Baptist) 8.00% 8/1/43 | 2,500,000 | 2,562,525 | ||||||
(Capella of Grand Junction Project) 144A 5.00% 12/1/54 # | 1,985,000 | 1,372,230 | ||||||
(Mental Health Center Denver Project) Series A 5.75% 2/1/44 | 500,000 | 509,620 | ||||||
(Sunny Vista Living Center) Series A 144A 5.50% 12/1/30 # | 750,000 | 646,403 | ||||||
Series A 144A 5.75% 12/1/35 # | 1,150,000 | 944,909 | ||||||
Series A 144A 6.125% 12/1/45 # | 1,200,000 | 940,968 | ||||||
Series A 144A 6.25% 12/1/50 # | 560,000 | 436,184 | ||||||
Cuyahoga County, Ohio Hospital Revenue (The Metrohealth System) 5.25% 2/15/47 | 4,000,000 | 4,119,280 | ||||||
5.50% 2/15/52 | 4,655,000 | 4,830,680 | ||||||
5.50% 2/15/57 | 6,365,000 | 6,592,230 | ||||||
Decatur, Texas Hospital Authority Revenue (Wise Regional Health System) Series C 4.00% 9/1/29 | 491,000 | 494,913 | ||||||
Series C 4.00% 9/1/34 | 987,000 | 923,506 | ||||||
Series C 4.00% 9/1/44 | 2,036,000 | 1,707,064 | ||||||
Glendale, Arizona Industrial Development
Authority Revenue (Glencroft Retirement Community Project) 5.00% 11/15/36 | 830,000 | 677,587 | ||||||
5.25% 11/15/51 | 1,350,000 | 1,014,930 | ||||||
Guilderland, New York Industrial Development
Agency Series A 144A 5.875% 1/1/52 #, ‡ | 6,000,000 | 4,500,000 | ||||||
Hawaii State Department of Budget &
Finance Special Purpose Senior Living Revenue (Kahala Nui) 5.25% 11/15/37 | 1,000,000 | 1,004,640 |
87
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Henrico County, Virginia Economic
Development Authority Residential Care Facility Revenue (Westminster Cantebury Richmond) Series A 5.00% 10/1/52 | 2,025,000 | $ | 2,117,401 | |||||
Hospital Facilities Authority of Multnomah
County, Oregon (Mirabella at South Waterfront) 5.50% 10/1/49 | 2,400,000 | 2,420,952 | ||||||
Idaho Health Facilities Authority Revenue (St. Luke’s Health System Project) Series A 3.00% 3/1/51 | 6,430,000 | 4,670,302 | ||||||
Series A 4.00% 3/1/51 | 2,000,000 | 1,842,420 | ||||||
Series A 5.00% 3/1/33 | 485,000 | 520,939 | ||||||
(Valley Vista Care Corporation) Series A 5.00% 11/15/32 | 455,000 | 417,030 | ||||||
Illinois Finance Authority Revenue (The Admiral at the Lake Project) 5.25% 5/15/42 | 900,000 | 747,990 | ||||||
5.25% 5/15/54 | 5,910,000 | 4,580,309 | ||||||
5.50% 5/15/54 | 3,375,000 | 2,722,241 | ||||||
Illinois Housing Development Authority (Stonebridge of Gurnee Project) Series A 144A 5.45% 1/1/46 # | 2,500,000 | 1,952,650 | ||||||
Series A 144A 5.60% 1/1/56 # | 2,630,000 | 1,995,171 | ||||||
Iowa Finance Authority (PHS Council Bluffs Project) 5.125% 8/1/48 | 1,750,000 | 1,473,272 | ||||||
5.25% 8/1/55 | 2,500,000 | 2,092,275 | ||||||
Kalispell, Montana (Immanuel Lutheran Corporation Project) Series A 5.25% 5/15/47 | 1,400,000 | 1,347,402 | ||||||
Kentucky Economic Development Finance Authority Healthcare Revenue (Rosedale Green Project) 5.50% 11/15/35 | 1,310,000 | 1,249,570 | ||||||
5.75% 11/15/45 | 3,000,000 | 2,799,870 | ||||||
5.75% 11/15/50 | 1,600,000 | 1,468,704 | ||||||
Kirkwood, Missouri Industrial Development
Authority (Aberdeen Heights) Series A 5.25% 5/15/50 | 5,000,000 | 4,508,450 |
88
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Lake County, Florida Retirement
Facility Revenue (Lakeside At Waterman Village Project) Series A 5.75% 8/15/50 | 2,500,000 | $ | 2,345,075 | |||||
Series A 5.75% 8/15/55 | 1,500,000 | 1,382,055 | ||||||
Louisiana Local Government Environmental
Facilities & Community Development Authority Revenue (The Glen Retirement System Project) Series A 5.00% 1/1/49 | 3,500,000 | 2,646,105 | ||||||
Series A 5.00% 1/1/55 | 2,635,000 | 1,921,574 | ||||||
Maricopa County, Arizona Industrial Development Authority (Christian Care Surprise Project) Series 2016 144A 6.00% 1/1/48 # | 5,645,000 | 4,236,685 | ||||||
Michigan State Strategic Fund Limited Revenue (Evangelical Homes) 5.50% 6/1/47 | 2,750,000 | 2,642,035 | ||||||
Montgomery County, Pennsylvania Industrial Development Authority Revenue (Whitemarsh Continuing Care) 5.25% 1/1/40 | 1,550,000 | 1,559,657 | ||||||
5.375% 1/1/50 | 6,250,000 | 6,275,937 | ||||||
Series A 5.375% 1/1/51 | 2,000,000 | 2,014,020 | ||||||
Moon, Pennsylvania Industrial Development
Authority (Baptist Homes Society Obligation) 6.125% 7/1/50 | 8,500,000 | 7,835,980 | ||||||
National Finance Authority Revenue, New
Hampshire (The Vista Project) Series A 144A 5.25% 7/1/39 # | 1,515,000 | 1,418,358 | ||||||
Series A 144A 5.625% 7/1/46 # | 1,000,000 | 955,120 | ||||||
Series A 144A 5.75% 7/1/54 # | 2,000,000 | 1,910,080 | ||||||
New Hope, Texas Cultural Education Facilities Finance (Army Retirement Residence Foundation Project) 6.00% 7/15/57 | 6,000,000 | 6,006,900 | ||||||
(Buckingham Senior Living Community, Inc. Project) Series A-1 7.50% 11/15/37 | 120,000 | 103,727 | ||||||
Series A-2 7.50% 11/15/36 | 745,000 | 666,730 | ||||||
Series B 2.00% 11/15/61 ~, • | 3,027,491 | 1,588,161 | ||||||
(Cardinal Bay - Village on the Park) Series A1 5.00% 7/1/46 ‡ | 660,000 | 488,400 | ||||||
Series A1 5.00% 7/1/51 ‡ | 1,575,000 | 1,165,500 |
89
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
New Hope, Texas Cultural Education
Facilities Finance (Cardinal Bay - Village on the Park) Series B 4.00% 7/1/31 | 635,000 | $ | 349,250 | |||||
Series B 4.75% 7/1/51 | 1,915,000 | 1,053,250 | ||||||
Series C 5.00% 7/1/31 | 250,000 | 125,000 | ||||||
Series C 5.25% 7/1/36 | 350,000 | 175,000 | ||||||
Series C 5.75% 7/1/51 | 2,250,000 | 1,125,000 | ||||||
Series D 6.00% 7/1/26 | 90,000 | 40,500 | ||||||
Series D 7.00% 7/1/51 | 1,350,000 | 607,500 | ||||||
(Legacy Midtown Park Project) Series A 5.50% 7/1/54 | 5,000,000 | 4,242,600 | ||||||
(Sanctuary LTC Project) Series A-1 5.50% 1/1/57 | 8,830,000 | 7,579,054 | ||||||
(The Outlook at Windhaven Project) Series A 6.75% 10/1/52 | 1,000,000 | 1,008,640 | ||||||
Series A 6.875% 10/1/57 | 6,500,000 | 6,558,175 | ||||||
New Jersey Economic Development Authority (Black Horse EHT Urban Renewal LLC Project) Series A 144A 5.00% 10/1/39 # | 3,125,000 | 2,642,656 | ||||||
(Lions Gate Project) 5.25% 1/1/44 | 2,000,000 | 1,920,520 | ||||||
New Jersey Health Care Facilities Financing
Authority Revenue (St. Peters University Hospital) 6.25% 7/1/35 | 2,700,000 | 2,704,941 | ||||||
New Mexico Hospital Equipment Loan Council (Gerald Champion Regional Medical Center Project) Series A 5.50% 7/1/42 | 4,750,000 | 4,757,790 | ||||||
New York State Dormitory Authority (Garnet Health Medical Center) 144A 5.00% 12/1/40 # | 1,100,000 | 1,103,520 | ||||||
New York State Thruway Authority Series B 3.00% 1/1/53 (BAM) | 3,410,000 | 2,537,892 | ||||||
North Carolina Medical Care Commission
Health Care Facilities Revenue (Novant Health Obligated Group) Series A 3.125% 11/1/49 | 5,000,000 | 3,897,100 |
90
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Northampton County, Pennsylvania
Industrial Development Authority Revenue (Morningstar Senior Living) 5.00% 7/1/36 | 2,000,000 | $ | 1,955,740 | |||||
5.00% 11/1/49 | 1,830,000 | 1,726,184 | ||||||
Orange County, New York Funding Corporation Assisted Living Residence Revenue 6.50% 1/1/46 | 3,600,000 | 3,076,272 | ||||||
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 #, ‡ | 10,495,000 | 3,988,100 | ||||||
Prince George’s County, Maryland (Collington Episcopal Life Care Community) 5.25% 4/1/47 | 2,000,000 | 1,832,320 | ||||||
Public Finance Authority, Wisconsin (Bancroft Neurohealth Project) Series A 144A 5.00% 6/1/36 # | 960,000 | 965,779 | ||||||
Series A 144A 5.125% 6/1/48 # | 1,375,000 | 1,375,578 | ||||||
Rochester, Minnesota (The Homestead at Rochester) Series A 6.875% 12/1/48 | 2,500,000 | 2,549,050 | ||||||
Seminole County, Florida Industrial Development Authority Revenue (Legacy Pointe at UCF Project) Series A 5.50% 11/15/49 | 2,000,000 | 1,773,900 | ||||||
Series A 5.75% 11/15/54 | 6,000,000 | 5,447,460 | ||||||
Shelby County, Tennessee Health Educational
& Housing Facilities Board Revenue (The Farms at Bailey Station Project) 5.75% 10/1/59 | 3,670,000 | 3,401,172 | ||||||
Southeastern Ohio Port Authority (Memorial Health Systems) 5.00% 12/1/43 | 805,000 | 788,683 | ||||||
5.50% 12/1/43 | 1,250,000 | 1,265,475 |
91
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
St. Louis County, Missouri
Industrial Development Authority (Nazareth Living Center Project) Series A 5.00% 8/15/35 | 600,000 | $ | 588,216 | |||||
Series A 5.125% 8/15/45 | 1,800,000 | 1,686,672 | ||||||
Tarrant County, Texas Cultural Education
Facilities Finance (Buckner Senior Living - Ventana Project) Series A 6.75% 11/15/47 | 2,250,000 | 2,329,132 | ||||||
Series A 6.75% 11/15/52 | 3,300,000 | 3,409,230 | ||||||
Tempe, Arizona Industrial Development Authority Revenue (Mirabella at ASU Project) Series A 144A 6.125% 10/1/47 # | 2,150,000 | 2,045,661 | ||||||
Series A 144A 6.125% 10/1/52 # | 2,570,000 | 2,420,657 | ||||||
University of North Carolina Board of Governors 5.00% 2/1/49 | 19,355,000 | 22,276,444 | ||||||
Washington State Housing Finance Commission (Heron’s Key) Series A 144A 7.00% 7/1/45 # | 1,000,000 | 1,036,070 | ||||||
Series A 144A 7.00% 7/1/50 # | 3,625,000 | 3,750,969 | ||||||
Westchester County, New York Local Development (Purchase Senior Learning Community, Inc. Project) Series A 144A 5.00% 7/1/56 # | 4,250,000 | 3,526,140 | ||||||
Westminster, Maryland (Lutheran Village Millers Grant) Series A 5.00% 7/1/24 | 625,000 | 636,019 | ||||||
Series A 6.00% 7/1/34 | 1,000,000 | 1,026,170 | ||||||
Series A 6.125% 7/1/39 | 750,000 | 769,267 | ||||||
Series A 6.25% 7/1/44 | 2,500,000 | 2,563,900 | ||||||
Wisconsin Health & Educational Facilities
Authority (Covenant Communities Project) Series B 5.00% 7/1/48 | 1,000,000 | 797,580 | ||||||
Series B 5.00% 7/1/53 | 945,000 | 731,553 | ||||||
Series C 7.00% 7/1/43 | 1,000,000 | 670,510 | ||||||
Series C 7.50% 7/1/53 | 1,000,000 | 683,950 | ||||||
(St. Camillus Health System) Series A 5.00% 11/1/46 | 2,000,000 | 1,805,260 | ||||||
Series A 5.00% 11/1/54 | 2,500,000 | 2,196,650 |
92
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Healthcare Revenue Bonds (continued) | ||||||||
Woodbury, Minnesota Housing
& Redevelopment Authority Revenue (St. Therese of Woodbury) 5.125% 12/1/44 | 1,250,000 | $ | 1,133,588 | |||||
Yamhill County, Oregon Hospital Authority (Friendsview) Series A 5.00% 11/15/51 | 100,000 | 86,782 | ||||||
Series A 5.00% 11/15/56 | 1,500,000 | 1,281,045 | ||||||
302,832,928 | ||||||||
Housing Revenue Bond — 0.04% | ||||||||
Independent Cities Finance Authority, California Series A 5.25% 5/15/44 | 750,000 | 762,803 | ||||||
762,803 | ||||||||
Lease Revenue Bonds — 2.64% | ||||||||
Baltimore, Maryland Special Obligation
Subordinate Revenue (Harbor Point Project) 144A 5.00% 6/1/51 # | 1,000,000 | 1,007,780 | ||||||
California Statewide Communities Development Authority Revenue (Lancer Plaza Project) 5.875% 11/1/43 | 1,875,000 | 1,905,263 | ||||||
Industrial Development Authority of Phoenix,
Arizona 5.125% 2/1/34 | 1,000,000 | 972,570 | ||||||
5.375% 2/1/41 | 1,300,000 | 1,274,702 | ||||||
Metropolitan Pier & Exposition Authority,
Illinois (McCormick Place Expansion Project) Series A 4.00% 6/15/52 | 6,980,000 | 6,069,599 | ||||||
Series A 5.00% 6/15/50 | 4,135,000 | 4,221,339 | ||||||
Series A 5.00% 6/15/57 | 3,975,000 | 4,048,537 | ||||||
New Jersey Transportation Trust Fund Authority Series AA 4.00% 6/15/50 | 2,945,000 | 2,665,254 | ||||||
(Transportation Program) Series AA 5.00% 6/15/25 | 1,000,000 | 1,055,710 | ||||||
Series AA 5.00% 6/15/44 | 2,900,000 | 2,958,203 | ||||||
New York Liberty Development Revenue (4 World Trade Center Project) Series A 3.00% 11/15/51 | 5,750,000 | 4,098,715 | ||||||
(Class 1 - 3 World Trade Center Project) 144A 5.00% 11/15/44 # | 4,000,000 | 3,869,480 |
93
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Lease Revenue Bonds (continued) | ||||||||
New York Liberty Development
Revenue (Class 3-3 World Trade Center Project) 144A 7.25% 11/15/44 # | 14,500,000 | $ | 14,780,140 | |||||
48,927,292 | ||||||||
Local General Obligation Bonds — 2.88% | ||||||||
Chicago, Illinois Series 2005D 5.50% 1/1/37 | 2,280,000 | 2,359,869 | ||||||
Series 2005D 5.50% 1/1/40 | 3,000,000 | 3,096,930 | ||||||
Series 2007E 5.50% 1/1/42 | 1,900,000 | 1,958,406 | ||||||
Series 2007F 5.50% 1/1/42 | 1,250,000 | 1,288,425 | ||||||
Series A 5.50% 1/1/49 | 770,000 | 811,518 | ||||||
Series C 5.00% 1/1/26 | 500,000 | 527,895 | ||||||
Chicago, Illinois Board of Education Series A 144A 7.00% 12/1/46 # | 2,500,000 | 2,815,950 | ||||||
Series G 5.00% 12/1/44 | 2,545,000 | 2,606,564 | ||||||
Series H 5.00% 12/1/46 | 4,225,000 | 4,319,217 | ||||||
(Dedicated Revenues) Series A 5.00% 12/1/42 | 7,690,000 | 7,650,627 | ||||||
Galveston, Texas Independent School District Unlimited Tax Building 4.00% 2/1/47 (PSF) | 7,500,000 | 7,196,325 | ||||||
Maricopa County, Arizona Special Health
Care District Series D 4.00% 7/1/35 | 3,000,000 | 3,108,060 | ||||||
MIDA Golf and Equestrian Center Public Infrastructure District, Utah 144A 4.50% 6/1/51 # | 4,835,000 | 3,853,302 | ||||||
144A 4.625% 6/1/57 # | 4,690,000 | 3,696,095 | ||||||
New York City, New York Series D-1 5.25% 5/1/42 | 6,425,000 | 7,127,124 | ||||||
Verve, Colorado Metropolitan District No.
1 5.00% 12/1/51 | 1,000,000 | 919,490 | ||||||
53,335,797 | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds — 2.30% | ||||||||
Alachua County, Florida Health Facilities
Authority (Oak Hammock University) Series A 8.00% 10/1/46-22 § | 1,500,000 | 1,536,495 | ||||||
Blythe Township, Pennsylvania Solid Waste
Authority Revenue 7.75% 12/1/37-27 (AMT) § | 2,900,000 | 3,452,972 |
94
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
Capital Trust Agency, Florida (River City Education Services Project) Series A 5.375% 2/1/35-22 § | 870,000 | $ | 897,805 | |||||
Series A 5.625% 2/1/45-22 § | 1,500,000 | 1,549,485 | ||||||
District of Columbia Revenue (KIPP Charter School) 6.00% 7/1/48-23 § | 1,450,000 | 1,491,760 | ||||||
East Hempfield Township, Pennsylvania Industrial Development Authority (Student Services Income - Student Housing Project) 5.00% 7/1/30-23 § | 1,000,000 | 1,020,380 | ||||||
Florida Development Finance (UF Health - Jacksonville Project) Series A 6.00% 2/1/33-23 § | 490,000 | 505,925 | ||||||
Foothill-Eastern Transportation Corridor
Agency, California Series A 6.00% 1/15/49-24 § | 7,690,000 | 8,067,348 | ||||||
Kanawha, West Virginia (West Virginia University Foundation Project) 144A 6.75% 7/1/45-23 #, § | 2,500,000 | 2,586,250 | ||||||
Kentucky Public Transportation Infrastructure Authority (1st Tier - Downtown Crossing) Series A 5.75% 7/1/49-23 § | 1,800,000 | 1,837,224 | ||||||
Series A 6.00% 7/1/53-23 § | 1,290,000 | 1,319,090 | ||||||
Nampa, Idaho Development Corporation Revenue 144A 5.00% 9/1/31-24 #, § | 2,940,000 | 3,151,239 | ||||||
New Jersey Economic Development Authority
Special Facility Revenue Series WW 5.25% 6/15/30-25 § | 5,000,000 | 5,378,200 | ||||||
Philadelphia, Pennsylvania Authority for
Industrial Development Revenue (New Foundation Charter School Project) 6.625% 12/15/41-22 § | 1,000,000 | 1,012,140 | ||||||
Phoenix, Arizona Industrial Development
Authority Education Revenue (Choice Academies Project) 5.375% 9/1/32 | 1,000,000 | 1,000,000 | ||||||
5.625% 9/1/42 | 600,000 | 600,000 |
95
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
Riverside County, California
Transportation Senior Lien Series A 5.75% 6/1/48-23 § | 1,000,000 | $ | 1,025,970 | |||||
Southwestern Illinois Development Authority
Revenue (Memorial Group) 7.125% 11/1/30-23 § | 1,420,000 | 1,495,175 | ||||||
7.125% 11/1/43-23 § | 2,500,000 | 2,632,350 | ||||||
Wisconsin Public Finance Authority (Rose Villa Project) Series A 144A 5.75% 11/15/44-24 #, § | 2,000,000 | 2,023,260 | ||||||
42,583,068 | ||||||||
Resource Recovery Revenue Bonds — 0.59% | ||||||||
Brazoria County, Texas Industrial Development
Solid Waste Disposal Facilities Revenue (Aleon Renewable Metals, LLC Project) 144A 10.00% 6/1/42 (AMT) #, • | 3,000,000 | 2,941,950 | ||||||
South Carolina Jobs-Economic Development Authority Educational Facilities Revenue (Last Step Recycling Project) Series A 144A 6.50% 6/1/51 (AMT) # | 1,500,000 | 1,204,485 | ||||||
Union County, New Jersey Improvement Authority (Aries Linden, LLC Project) 144A 6.75% 12/1/41 (AMT) # | 7,800,000 | 6,814,782 | ||||||
10,961,217 | ||||||||
Special Tax Revenue Bonds — 13.31% | ||||||||
Allentown, Pennsylvania Neighborhood Improvement Zone Development Authority Revenue (City Center Project) 144A 5.25% 5/1/42 # | 6,530,000 | 6,777,291 | ||||||
Arkansas Steel Development Finance Authority Environmental Improvement Revenue (United States Steel Corporation Project) 144A 5.45% 9/1/52 (AMT) # | 2,000,000 | 1,979,580 | ||||||
Celebration Pointe, Florida Community Development District No 1 5.125% 5/1/45 | 1,915,000 | 1,926,528 | ||||||
Cherry Hill, Virginia Community Development Authority (Potomac Shores Project) 144A 5.15% 3/1/35 # | 1,000,000 | 1,007,900 | ||||||
144A 5.40% 3/1/45 # | 2,000,000 | 2,013,420 |
96
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
City & County of San Francisco,
California Special Tax District No 2020-1 Series B 144A 5.25% 9/1/49 # | 1,000,000 | $ | 778,820 | |||||
Commonwealth of Puerto Rico 2.281% 11/1/51 • | 14,610,305 | 6,665,952 | ||||||
Conley Road Transportation Development
District, Missouri 5.375% 5/1/47 | 6,655,000 | 6,490,222 | ||||||
Detroit, Michigan Series A 4.613% 6/15/15 ‡ | 4,587,545 | 4,358,168 | ||||||
Series A 4.813% 6/15/20 ‡ | 4,496,435 | 4,271,614 | ||||||
(Taxable) Series B 2.169% 6/15/34 ‡ | 4,640,163 | 4,048,542 | ||||||
Fountain Urban Renewal Authority, Colorado (Improvement - South Academy Highland) Series A 5.50% 11/1/44 | 3,750,000 | 3,669,788 | ||||||
GDB Debt Recovery Authority of Puerto Rico 7.50% 8/20/40 | 64,710,685 | 57,916,063 | ||||||
Glen Cove, New York Local Economic Assistance (Garvies Point Public Improvement Project) Series A 5.00% 1/1/56 | 2,000,000 | 1,816,760 | ||||||
Guam Government Business Privilege Tax
Revenue Series F 4.00% 1/1/42 | 2,500,000 | 2,217,275 | ||||||
Henderson, Nevada Local Improvement Districts (Black Mountain Ranch) 3.00% 9/1/36 | 300,000 | 235,671 | ||||||
3.50% 9/1/45 | 720,000 | 549,446 | ||||||
4.00% 9/1/51 | 500,000 | 413,250 | ||||||
Hickory Chase Community Authority Revenue,
Ohio (Hickory Chase Project) Senior Series A 144A 5.00% 12/1/40 # | 1,390,000 | 1,304,974 | ||||||
Juban Crossing Economic Development District, Louisiana (General Infrastructure Projects) Series C 144A 7.00% 9/15/44 # | 3,010,000 | 2,674,927 | ||||||
(Road Projects) Series A 144A 7.00% 9/15/44 # | 1,910,000 | 1,697,379 | ||||||
Maricopa County, Arizona Industrial Development Authority (Choice Academies, Inc. Project) Series AZ 144A 5.75% 9/1/45 # | 5,000,000 | 4,987,300 |
97
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Matching Fund Special Purpose
Securitization Corporation, US Virgin Islands Series A 5.00% 10/1/39 | 2,655,000 | $ | 2,756,288 | |||||
Midtown Miami, Florida Community Development District (Parking Garage Project) Series A 5.00% 5/1/37 | 500,000 | 501,260 | ||||||
Mobile, Alabama Improvement District (McGowin Park Project) Series A 5.25% 8/1/30 | 1,000,000 | 968,840 | ||||||
Series A 5.50% 8/1/35 | 1,300,000 | 1,240,499 | ||||||
New York State Thruway Authority Series A-1 3.00% 3/15/50 | 3,640,000 | 2,829,372 | ||||||
Series A-1 4.00% 3/15/56 | 2,380,000 | 2,204,737 | ||||||
Northampton County, Pennsylvania Industrial Development Authority (Route 33 Project) 7.00% 7/1/32 | 1,955,000 | 1,997,130 | ||||||
Prairie Center Metropolitan District No
3, Colorado Series A 144A 5.00% 12/15/41 # | 2,000,000 | 1,960,080 | ||||||
Public Finance Authority Revenue, Wisconsin (American Dream @ Meadowlands Project) 144A 7.00% 12/1/50 # | 5,065,000 | 4,536,163 | ||||||
(Mclemore Hotel & Conference Center) Series B 144A 6.50% 6/1/56 # | 1,000,000 | 796,610 | ||||||
(Mclemore Hotel And Conference Center) Series A 144A 4.50% 6/1/56 # | 13,000,000 | 9,666,150 | ||||||
(Shining Rock Classical Academy) Series A 6.00% 6/15/52 | 1,000,000 | 963,670 | ||||||
Series A 6.125% 6/15/57 | 1,000,000 | 965,760 | ||||||
Puerto Rico Sales Tax Financing Revenue (Capital Appreciation-Restructured) Series A-1 5.896% 7/1/46 ^ | 27,790,000 | 7,958,778 | ||||||
(Restructured) Series A-1 0.115% 7/1/51 ^ | 38,879,000 | 8,291,336 | ||||||
Series A-1 4.75% 7/1/53 | 49,755,000 | 47,580,706 | ||||||
Series A-1 5.00% 7/1/58 | 12,910,000 | 12,523,991 | ||||||
Series A-2 4.536% 7/1/53 | 1,022,000 | 943,255 | ||||||
Series A-2 4.784% 7/1/58 | 9,337,000 | 8,731,029 | ||||||
Series B-1 4.75% 7/1/53 | 135,000 | 129,100 |
98
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Special Tax Revenue Bonds (continued) | ||||||||
Richmond Heights, Missouri
Tax Increment & Transaction Sales Tax Revenue Improvement (Francis Place Redevelopment Project) 5.625% 11/1/25 | 730,000 | $ | 715,057 | |||||
San Francisco, California Bay Area Rapid
Transit District Sales Tax Revenue Series A 3.00% 7/1/44 | 2,000,000 | 1,644,020 | ||||||
St. Louis County, Missouri Industrial Development Authority (Manchester Ballas Community) Series A 144A 5.00% 9/1/38 # | 1,050,000 | 980,836 | ||||||
Series A 144A 5.25% 9/1/45 # | 3,540,000 | 3,244,056 | ||||||
St. Louis, Missouri Industrial Development
Authority Tax Increment Revenue Improvement (Grand Center Redevelopment Project) 6.375% 12/1/25 | 340,000 | 340,160 | ||||||
Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue (Sales Tax Vacation Village Project) Series A 6.00% 9/1/35 | 4,690,000 | 4,323,992 | ||||||
246,593,745 | ||||||||
State General Obligation Bonds — 11.25% | ||||||||
California State 4.00% 10/1/36 | 5,055,000 | 5,209,329 | ||||||
(Various Purpose) 5.00% 8/1/27 | 5,000,000 | 5,481,750 | ||||||
5.00% 9/1/41 | 2,660,000 | 2,975,582 | ||||||
5.00% 4/1/42 | 3,000,000 | 3,360,330 | ||||||
Commonwealth of Massachusetts Series B 5.00% 1/1/32 | 5,000,000 | 5,527,700 | ||||||
Series D 4.00% 11/1/35 | 5,000,000 | 5,200,600 | ||||||
Commonwealth of Puerto Rico 2.901% 11/1/43 • | 104,373,519 | 53,882,829 | ||||||
(Restructured) Series A-1 4.00% 7/1/33 | 7,423,065 | 6,955,486 | ||||||
Series A-1 4.00% 7/1/35 | 6,672,344 | 6,134,887 | ||||||
Series A-1 4.00% 7/1/37 | 5,759,631 | 5,161,148 | ||||||
Series A-1 4.00% 7/1/41 | 12,825,028 | 11,200,225 | ||||||
Series A-1 4.00% 7/1/46 | 9,198,364 | 7,811,343 | ||||||
Series A-1 4.364% 7/1/33 ^ | 8,703,005 | 4,952,793 | ||||||
Series A-1 5.625% 7/1/27 | 8,192,346 | 8,693,718 |
99
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
State General Obligation Bonds (continued) | ||||||||
Commonwealth of Puerto Rico (Restructured) Series A-1 5.625% 7/1/29 | 8,059,441 | $ | 8,680,179 | |||||
Series A-1 5.75% 7/1/31 | 7,828,068 | 8,587,860 | ||||||
Georgia State Series A 4.00% 7/1/38 | 3,500,000 | 3,628,660 | ||||||
Illinois State 5.00% 1/1/28 | 1,190,000 | 1,247,168 | ||||||
5.00% 11/1/36 | 2,245,000 | 2,316,301 | ||||||
5.00% 2/1/39 | 2,180,000 | 2,217,714 | ||||||
5.50% 5/1/39 | 6,000,000 | 6,518,640 | ||||||
Series A 5.00% 12/1/34 | 2,625,000 | 2,737,324 | ||||||
Series A 5.00% 4/1/38 | 2,805,000 | 2,824,691 | ||||||
Series A 5.125% 12/1/29 | 1,310,000 | 1,400,141 | ||||||
Series A 5.50% 3/1/42 | 4,400,000 | 4,833,312 | ||||||
Series A 5.50% 3/1/47 | 5,200,000 | 5,656,924 | ||||||
Series B 3.00% 12/1/41 | 2,605,000 | 2,028,592 | ||||||
Series D 5.00% 11/1/28 | 4,700,000 | 5,018,707 | ||||||
(Rebuild Illinois Program) Series B 4.00% 11/1/35 | 2,000,000 | 1,918,660 | ||||||
Series B 4.00% 11/1/39 | 1,225,000 | 1,143,819 | ||||||
New Jersey State Series A 4.00% 6/1/31 | 2,080,000 | 2,221,378 | ||||||
Ohio State (Infrastructure Improvement) Series A 5.00% 9/1/32 | 5,000,000 | 5,607,400 | ||||||
Washington State (Various Purpose) Series C 5.00% 2/1/46 | 6,635,000 | 7,309,182 | ||||||
208,444,372 | ||||||||
Transportation Revenue Bonds — 3.25% | ||||||||
Atlanta, Georgia Airport Revenue Series B 5.00% 7/1/52 (AMT) | 2,000,000 | 2,095,900 | ||||||
Florida Development Finance (Brightline Florida Passenger Rail Expansion Project) Series A 144A 7.25% 7/1/57 (AMT) #, • | 5,000,000 | 4,898,200 | ||||||
Georgia Ports Authority 4.00% 7/1/52 | 4,000,000 | 3,803,560 | ||||||
Long Beach, California Marina Revenue 5.00% 5/15/40 | 1,000,000 | 1,018,100 |
100
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Transportation Revenue Bonds (continued) | ||||||||
Metropolitan Transportation
Authority Revenue, New York Subordinate Series C-1 5.25% 11/15/55 | 5,000,000 | $ | 5,202,500 | |||||
New York Transportation Development (Delta Airlines Inc. LaGuardia Airport Terminals C & D Redevelopment Project) 4.375% 10/1/45 (AMT) | 10,200,000 | 9,464,580 | ||||||
5.00% 10/1/40 (AMT) | 3,400,000 | 3,502,102 | ||||||
(Terminal 4 - John F. Kennedy International
Airport Project) 5.00% 12/1/40 (AMT) | 5,000,000 | 5,202,700 | ||||||
Phoenix, Arizona Civic Improvement (Junior Lien) Series A 5.00% 7/1/40 | 30,000 | 31,398 | ||||||
Port Beaumont, Texas Navigation District
Dock & Wharf Facility Revenue (Jefferson Gulf Coast Energy Project) Series A 144A 2.875% 1/1/41 (AMT) # | 1,750,000 | 1,228,413 | ||||||
Port of Seattle, Washington Intermediate
Lien Revenue Series B 4.00% 8/1/47 (AMT) | 2,250,000 | 2,081,587 | ||||||
Series B 5.50% 8/1/47 (AMT) | 3,000,000 | 3,307,680 | ||||||
San Diego County, California Regional Airport Authority Series B 4.00% 7/1/56 (AMT) | 3,000,000 | 2,695,740 | ||||||
South Jersey Port, New Jersey (Subordinated Marine Terminal Revenue) Series A 5.00% 1/1/49 | 1,110,000 | 1,140,259 | ||||||
Series B 5.00% 1/1/48 (AMT) | 2,000,000 | 2,018,460 | ||||||
Texas Private Activity Bond Surface Transportation Corporate Senior Lien (NTE Mobility Partners Segments 3 LLC Segment 3C Project) 5.00% 6/30/58 (AMT) | 9,075,000 | 9,178,818 | ||||||
(NTE Mobility) 6.75% 6/30/43 (AMT) | 1,905,000 | 1,958,531 | ||||||
7.00% 12/31/38 (AMT) | 1,335,000 | 1,377,733 | ||||||
60,206,261 | ||||||||
Water & Sewer Revenue Bonds — 2.98% | ||||||||
Chicago, Illinois Waterworks Revenue (2nd Lien) 5.00% 11/1/26 | 180,000 | 191,752 |
101
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) | ||||||||
Water & Sewer Revenue Bonds (continued) | ||||||||
Chicago, Illinois Waterworks
Revenue (2nd Lien) 5.00% 11/1/28 | 30,000 | $ | 31,807 | |||||
Dominion, Colorado Water & Sanitation
District Revenue 6.00% 12/1/46 | 3,865,000 | 3,948,290 | ||||||
Jefferson County, Alabama Sewer Revenue (Senior Lien-Warrants) Series A 5.50% 10/1/53 (AGM) | 2,500,000 | 2,616,400 | ||||||
(Sub Lien-Warrants) Series D 6.50% 10/1/53 | 14,000,000 | 15,170,120 | ||||||
Series D 7.00% 10/1/51 | 5,000,000 | 5,444,250 | ||||||
King County, Washington Sewer Revenue Series A 4.00% 1/1/52 | 5,000,000 | 4,878,850 | ||||||
Tampa, Florida Water & Wastewater System
Revenue Series A 5.25% 10/1/57 | 15,000,000 | 17,071,950 | ||||||
Texas Water Development Board (Master Trust) Series B 5.00% 4/15/31 | 5,240,000 | 5,923,401 | ||||||
55,276,820 | ||||||||
Total Municipal Bonds (cost $1,871,606,218) | 1,813,099,881 | |||||||
Short-Term Investments — 1.43% | ||||||||
Variable Rate Demand Notes — 1.43%¤ | ||||||||
Los Angeles, California Department of Water
& Power Revenue (Power System) Subordinate Series A-1 0.85% 7/1/50 (SPA - Royal Bank of Canada) | 5,900,000 | 5,900,000 | ||||||
Mississippi Business Finance Corporation
Gulf Opportunity Zone Industrial Development Revenue (Chevron U.S.A. Inc. Project) Series G 1.00% 11/1/35 | 6,000,000 | 6,000,000 | ||||||
New York City, New York Fiscal 2018 Subordinate Series B-4 1.08% 10/1/46 (SPA - Barclays Bank) | 1,000,000 | 1,000,000 | ||||||
New York City, New York Municipal Water
Finance Authority Water & Sewer System Revenue 1.05% 6/15/48 (SPA - Mizuho Bank) | 4,120,000 | 4,120,000 | ||||||
Subordinate Series A-2 1.03% 6/15/44 (SPA - Mizuho Bank) | 3,350,000 | 3,350,000 |
102
Principal amount° | Value (US $) | |||||||
Short-Term Investments (continued) | ||||||||
Variable Rate Demand Notes (continued) | ||||||||
New York City, New York Transitional
Finance Authority Future Tax Secured Subordinate Series C-4 1.08% 11/1/44 (SPA - Barclays Bank) | 6,100,000 | $ | 6,100,000 | |||||
Total Short-Term Investments (cost $26,470,000) | 26,470,000 | |||||||
Total
Value of Securities—99.29% (cost $1,898,076,218) | $ | 1,839,569,881 |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2022, the aggregate value of Rule 144A securities was $468,140,398, which represents 25.27% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
‡ | Non-income producing security. Security is currently in default. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at August 31, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
~ | 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 August 31, 2022. |
§ | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 10 in “Notes to financial statements.” |
¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of August 31, 2022. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
103
Schedules of investments
Delaware National High-Yield Municipal Bond Fund
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
ICE – Intercontinental Exchange, Inc.
KIPP – Knowledge is Power Program
L.P. – Limited Partnership
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
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.
104
Statements of assets and liabilities | August 31, 2022 |
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||
Assets: | ||||||||||||
Investments, at value* | $ | 903,846,700 | $ | 1,061,816,370 | $ | 1,839,569,881 | ||||||
Cash | 906,400 | 1,134 | 1,808,272 | |||||||||
Interest receivable | 9,021,077 | 10,425,612 | 18,195,586 | |||||||||
Receivable for fund shares sold | 4,368,975 | 3,841,462 | 3,933,249 | |||||||||
Prepaid expenses | 236,239 | 191,218 | 123,533 | |||||||||
Receivable for securities sold | — | — | 482,345 | |||||||||
Other assets | 7,207 | 8,545 | 12,693 | |||||||||
Total Assets | 918,386,598 | 1,076,284,341 | 1,864,125,559 | |||||||||
Liabilities: | ||||||||||||
Payable for fund shares redeemed | 4,531,682 | 4,902,558 | 5,908,154 | |||||||||
Distribution payable | 616,431 | 380,110 | 924,688 | |||||||||
Investment management fees payable to affiliates | 321,794 | 322,067 | 773,189 | |||||||||
Other accrued expenses | 320,118 | 366,695 | 604,510 | |||||||||
Distribution fees payable to affiliates | 123,342 | 103,999 | 95,851 | |||||||||
Administration expenses payable to affiliates | 40,083 | 46,557 | 64,880 | |||||||||
Payable for securities purchased | — | 932,799 | 3,000,000 | |||||||||
Total Liabilities | 5,953,450 | 7,054,785 | 11,371,272 | |||||||||
Total Net Assets | $ | 912,433,148 | $ | 1,069,229,556 | $ | 1,852,754,287 | ||||||
Net Assets Consist of: | ||||||||||||
Paid-in capital | $ | 975,395,737 | $ | 1,137,430,522 | $ | 1,951,671,983 | ||||||
Total distributable earnings (loss) | (62,962,589 | ) | (68,200,966 | ) | (98,917,696 | ) | ||||||
Total Net Assets | $ | 912,433,148 | $ | 1,069,229,556 | $ | 1,852,754,287 |
105
Statements of assets and liabilities
Delaware
Tax-Free USA Fund | Delaware
Tax-Free USA Intermediate Fund | Delaware
National High-Yield Municipal Bond Fund | |||||||||||
Net Asset Value | |||||||||||||
Class A: | |||||||||||||
Net assets | $ | 534,749,171 | $ | 452,771,562 | $ | 261,838,712 | |||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 50,903,007 | 41,140,618 | 25,297,303 | ||||||||||
Net asset value per share | $ | 10.51 | $ | 11.01 | $ | 10.35 | |||||||
Sales charge | 4.50 | % | 2.75 | % | 4.50 | % | |||||||
Offering price per share, equal to net asset value per share / (1 - sales charge) | $ | 11.01 | $ | 11.32 | $ | 10.84 | |||||||
Class C: | |||||||||||||
Net assets | $ | 8,365,971 | $ | 6,872,009 | $ | 46,410,496 | |||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 796,209 | 625,000 | 4,466,320 | ||||||||||
Net asset value per share | $ | 10.51 | $ | 11.00 | $ | 10.39 | |||||||
Institutional Class: | |||||||||||||
Net assets | $ | 369,318,006 | $ | 609,585,985 | $ | 1,544,505,079 | |||||||
Shares of beneficial interest outstanding, unlimited authorization, no par | 34,873,704 | 54,870,526 | 147,852,563 | ||||||||||
Net asset value per share | $ | 10.59 | $ | 11.11 | $ | 10.45 | |||||||
*Investments, at cost | $ | 930,898,459 | $ | 1,088,572,086 | $ | 1,898,076,218 |
See accompanying notes, which are an integral part of the financial statements.
106
Statements of operations | Year ended August 31, 2022 |
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||
Investment Income: | ||||||||||||
Interest | $ | 36,210,764 | $ | 41,530,224 | $ | 85,598,755 | ||||||
Expenses: | ||||||||||||
Management fees | 5,214,499 | 5,700,711 | 8,795,702 | |||||||||
Distribution expenses — Class A | 1,837,676 | 1,277,376 | 629,426 | |||||||||
Distribution expenses — Class C | 96,647 | 74,256 | 530,236 | |||||||||
Dividend disbursing and transfer agent fees and expenses | 869,122 | 1,037,888 | 1,590,668 | |||||||||
Accounting and administration expenses | 186,553 | 212,556 | 294,809 | |||||||||
Reports and statements to shareholders expenses | 80,957 | 85,570 | 134,281 | |||||||||
Legal fees | 43,119 | 47,214 | 68,696 | |||||||||
Audit and tax fees | 41,179 | 41,179 | 41,179 | |||||||||
Trustees’ fees and expenses | 35,808 | 42,408 | 61,615 | |||||||||
Custodian fees | 32,042 | 36,945 | 49,631 | |||||||||
Registration fees | 17,561 | 23,188 | 26,633 | |||||||||
Other | 136,105 | 150,058 | 188,810 | |||||||||
8,591,268 | 8,729,349 | 12,411,686 | ||||||||||
Less expenses waived | (1,128,184 | ) | (1,458,619 | ) | (522,852 | ) | ||||||
Less waived distribution expenses — Class A | — | (181,110 | ) | — | ||||||||
Less expenses paid indirectly | (600 | ) | (523 | ) | (100 | ) | ||||||
Total operating expenses | 7,462,484 | 7,089,097 | 11,888,734 | |||||||||
Net Investment Income (Loss) | 28,748,280 | 34,441,127 | 73,710,021 |
107
Statements of operations
Delaware
Tax-Free USA Fund | Delaware
Tax-Free USA Intermediate Fund | Delaware
National High-Yield Municipal Bond Fund | ||||||||||
Net Realized and Unrealized Gain (Loss): | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments | $ | (33,959,143 | ) | $ | (38,294,341 | ) | $ | (42,953,091 | ) | |||
Redemptions in-kind* | 1,632,187 | — | — | |||||||||
Net realized gain (loss) | (32,326,956 | ) | (38,294,341 | ) | (42,953,091 | ) | ||||||
Net change in unrealized appreciation (depreciation) on investments | (135,309,676 | ) | (127,905,368 | ) | (225,036,921 | ) | ||||||
Net Realized and Unrealized Gain (Loss) | (167,636,632 | ) | (166,199,709 | ) | (267,990,012 | ) | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (138,888,352 | ) | $ | (131,758,582 | ) | $ | (194,279,991 | ) | |||
* | See Note 12 in “Notes to financial statements” |
See accompanying notes, which are an integral part of the financial statements.
108
Statements of changes in net assets
Delaware Tax-Free USA Fund
Year ended | ||||||||
8/31/22 | 8/31/21 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income (loss) | $ | 28,748,280 | $ | 27,277,440 | ||||
Net realized gain (loss) | (32,326,956 | ) | 14,002,171 | |||||
Net change in unrealized appreciation (depreciation) | (135,309,676 | ) | 36,359,907 | |||||
Net increase (decrease) in net assets resulting from operations | (138,888,352 | ) | 77,639,518 | |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (31,900,298 | ) | (25,318,469 | ) | ||||
Class C | (346,866 | ) | (280,251 | ) | ||||
Institutional Class | (11,084,625 | ) | (6,065,860 | ) | ||||
(43,331,789 | ) | (31,664,580 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 253,814,461 | 235,612,013 | ||||||
Class C | 3,778,437 | 3,297,954 | ||||||
Institutional Class | 339,475,248 | 109,204,466 | ||||||
Net assets from merger:1 | ||||||||
Class A | — | 328,299,539 | ||||||
Institutional Class | — | 5,996,641 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 29,634,976 | 23,552,498 | ||||||
Class C | 338,804 | 270,943 | ||||||
Institutional Class | 9,707,948 | 5,567,596 | ||||||
636,749,874 | 711,801,650 |
109
Statements of changes in net assets
Delaware Tax-Free USA Fund
Year ended | ||||||||
8/31/22 | 8/31/21 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (558,816,551 | ) | $ | (159,410,262 | ) | ||
Class C | (3,819,203 | ) | (5,008,138 | ) | ||||
Institutional Class | (142,795,609 | ) | (55,273,658 | ) | ||||
(705,431,363 | ) | (219,692,058 | ) | |||||
Increase (decrease) in net assets derived from capital share transactions | (68,681,489 | ) | 492,109,592 | |||||
Net Increase (Decrease) in Net Assets | (250,901,630 | ) | 538,084,530 | |||||
Net Assets: | ||||||||
Beginning of year | 1,163,334,778 | 625,250,248 | ||||||
End of year | $ | 912,433,148 | $ | 1,163,334,778 | ||||
1 | See Note 7 in the “Notes to financial statements.” |
See accompanying notes, which are an integral part of the financial statements.
110
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
Year ended | ||||||||
8/31/22 | 8/31/21 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income (loss) | $ | 34,441,127 | $ | 26,916,399 | ||||
Net realized gain (loss) | (38,294,341 | ) | 3,589,481 | |||||
Net change in unrealized appreciation (depreciation) | (127,905,368 | ) | 23,578,495 | |||||
Net increase (decrease) in net assets resulting from operations | (131,758,582 | ) | 54,084,375 | |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (14,242,426 | ) | (11,854,316 | ) | ||||
Class C | (149,437 | ) | (178,774 | ) | ||||
Institutional Class | (20,049,264 | ) | (14,883,309 | ) | ||||
(34,441,127 | ) | (26,916,399 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 45,547,114 | 36,876,504 | ||||||
Class C | 2,873,486 | 1,380,348 | ||||||
Institutional Class | 521,335,408 | 234,730,547 | ||||||
Net assets from merger:1 | ||||||||
Class A | — | 470,834,974 | ||||||
Institutional Class | — | 18,475,967 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 12,394,377 | 10,426,299 | ||||||
Class C | 146,413 | 173,341 | ||||||
Institutional Class | 17,674,611 | 12,629,448 | ||||||
599,971,409 | 785,527,428 |
111
Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund
Year ended | ||||||||
8/31/22 | 8/31/21 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (99,996,602 | ) | $ | (71,110,681 | ) | ||
Class C | (2,610,271 | ) | (6,225,744 | ) | ||||
Institutional Class | (483,548,428 | ) | (85,471,965 | ) | ||||
(586,155,301 | ) | (162,808,390 | ) | |||||
Increase in net assets derived from capital share transactions | 13,816,108 | 622,719,038 | ||||||
Net Increase (Decrease) in Net Assets | (152,383,601 | ) | 649,887,014 | |||||
Net Assets: | ||||||||
Beginning of year | 1,221,613,157 | 571,726,143 | ||||||
End of year | $ | 1,069,229,556 | $ | 1,221,613,157 | ||||
1 | See Note 7 in the “Notes to financial statements.” |
See accompanying notes, which are an integral part of the financial statements.
112
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
Year ended | ||||||||
8/31/22 | 8/31/21 | |||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||
Net investment income (loss) | $ | 73,710,021 | $ | 58,879,265 | ||||
Net realized gain (loss) | (42,953,091 | ) | 3,569,420 | |||||
Net change in unrealized appreciation (depreciation) | (225,036,921 | ) | 113,554,681 | |||||
Net increase (decrease) in net assets resulting from operations | (194,279,991 | ) | 176,003,366 | |||||
Dividends and Distributions to Shareholders from: | ||||||||
Distributable earnings: | ||||||||
Class A | (10,155,975 | ) | (7,978,592 | ) | ||||
Class C | (1,727,407 | ) | (1,879,208 | ) | ||||
Institutional Class | (63,585,989 | ) | (50,482,911 | ) | ||||
(75,469,371 | ) | (60,340,711 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from shares sold: | ||||||||
Class A | 132,767,302 | 74,301,021 | ||||||
Class C | 11,602,221 | 9,587,231 | ||||||
Institutional Class | 1,068,879,793 | 415,992,713 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
Class A | 9,284,028 | 7,109,227 | ||||||
Class C | 1,640,114 | 1,805,203 | ||||||
Institutional Class | 53,416,421 | 41,321,516 | ||||||
1,277,589,879 | 550,116,911 |
113
Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund
Year ended | ||||||||
8/31/22 | 8/31/21 | |||||||
Capital Share Transactions (continued): | ||||||||
Cost of shares redeemed: | ||||||||
Class A | $ | (89,531,641 | ) | $ | (31,938,137 | ) | ||
Class C | (17,118,633 | ) | (26,908,717 | ) | ||||
Institutional Class | (807,206,556 | ) | (194,917,161 | ) | ||||
(913,856,830 | ) | (253,764,015 | ) | |||||
Increase in net assets derived from capital share transactions | 363,733,049 | 296,352,896 | ||||||
Net Increase in Net Assets | 93,983,687 | 412,015,551 | ||||||
Net Assets: | ||||||||
Beginning of year | 1,758,770,600 | 1,346,755,049 | ||||||
End of year | $ | 1,852,754,287 | $ | 1,758,770,600 |
See accompanying notes, which are an integral part of the financial statements.
114
This page intentionally left blank.
Delaware Tax-Free USA Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Amount is less than $0.005 per share. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
116
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.56 | $ | 11.94 | $ | 11.96 | $ | 11.44 | $ | 11.70 | ||||||||||
0.33 | 0.36 | 0.38 | 0.41 | 0.42 | |||||||||||||||
(1.88 | ) | 0.70 | 0.01 | 0.52 | (0.26 | ) | |||||||||||||
(1.55 | ) | 1.06 | 0.39 | 0.93 | 0.16 | ||||||||||||||
(0.33 | ) | (0.36 | ) | (0.38 | ) | (0.41 | ) | (0.42 | ) | ||||||||||
(0.17 | ) | (0.08 | ) | (0.03 | ) | — | 2 | — | |||||||||||
(0.50 | ) | (0.44 | ) | (0.41 | ) | (0.41 | ) | (0.42 | ) | ||||||||||
$ | 10.51 | $ | 12.56 | $ | 11.94 | $ | 11.96 | $ | 11.44 | ||||||||||
(12.65% | ) | 9.03% | 3.44% | 8.35% | 1.44% | ||||||||||||||
$ | 534,749 | $ | 944,054 | $ | 478,671 | $ | 472,153 | $ | 481,117 | ||||||||||
0.80% | 0.82% | 0.81% | 0.81% | 0.81% | |||||||||||||||
0.91% | 0.92% | 0.95% | 0.95% | 0.96% | |||||||||||||||
2.82% | 2.84% | 3.24% | 3.55% | 3.66% | |||||||||||||||
2.71% | 2.74% | 3.10% | 3.41% | 3.51% | |||||||||||||||
71% | 40% | 77% | 43% | 42% |
117
Financial highlights
Delaware Tax-Free USA Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Amount is less than $0.005 per share. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
118
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.56 | $ | 11.94 | $ | 11.96 | $ | 11.44 | $ | 11.70 | ||||||||||
0.24 | 0.26 | 0.29 | 0.32 | 0.34 | |||||||||||||||
(1.88 | ) | 0.70 | 0.01 | 0.52 | (0.26 | ) | |||||||||||||
(1.64 | ) | 0.96 | 0.30 | 0.84 | 0.08 | ||||||||||||||
(0.24 | ) | (0.26 | ) | (0.29 | ) | (0.32 | ) | (0.34 | ) | ||||||||||
(0.17 | ) | (0.08 | ) | (0.03 | ) | — | 2 | — | |||||||||||
(0.41 | ) | (0.34 | ) | (0.32 | ) | (0.32 | ) | (0.34 | ) | ||||||||||
$ | 10.51 | $ | 12.56 | $ | 11.94 | $ | 11.96 | $ | 11.44 | ||||||||||
(13.31% | ) | 8.22% | 2.66% | 7.55% | 0.68% | ||||||||||||||
$ | 8,366 | $ | 9,834 | $ | 10,778 | $ | 16,051 | $ | 18,808 | ||||||||||
1.55% | 1.57% | 1.56% | 1.56% | 1.56% | |||||||||||||||
1.66% | 1.67% | 1.70% | 1.70% | 1.71% | |||||||||||||||
2.07% | 2.09% | 2.49% | 2.80% | 2.91% | |||||||||||||||
1.96% | 1.99% | 2.35% | 2.66% | 2.76% | |||||||||||||||
71% | 40% | 77% | 43% | 42% |
119
Financial highlights
Delaware Tax-Free USA Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return3 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Amount is less than $0.005 per share. |
3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
120
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.66 | $ | 12.03 | $ | 12.05 | $ | 11.52 | $ | 11.79 | ||||||||||
0.36 | 0.39 | 0.41 | 0.44 | 0.45 | |||||||||||||||
(1.90 | ) | 0.71 | 0.01 | 0.53 | (0.27 | ) | |||||||||||||
(1.54 | ) | 1.10 | 0.42 | 0.97 | 0.18 | ||||||||||||||
(0.36 | ) | (0.39 | ) | (0.41 | ) | (0.44 | ) | (0.45 | ) | ||||||||||
(0.17 | ) | (0.08 | ) | (0.03 | ) | — | 2 | — | |||||||||||
(0.53 | ) | (0.47 | ) | (0.44 | ) | (0.44 | ) | (0.45 | ) | ||||||||||
$ | 10.59 | $ | 12.66 | $ | 12.03 | $ | 12.05 | $ | 11.52 | ||||||||||
(12.48% | ) | 9.34% | 3.70% | 8.68% | 1.61% | ||||||||||||||
$ | 369,318 | $ | 209,447 | $ | 135,801 | $ | 134,112 | $ | 77,396 | ||||||||||
0.55% | 0.57% | 0.56% | 0.56% | 0.56% | |||||||||||||||
0.66% | 0.67% | 0.70% | 0.70% | 0.71% | |||||||||||||||
3.07% | 3.09% | 3.49% | 3.80% | 3.91% | |||||||||||||||
2.96% | 2.99% | 3.35% | 3.66% | 3.76% | |||||||||||||||
71% | 40% | 77% | 43% | 42% |
121
Financial highlights
Delaware Tax-Free USA Intermediate Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects 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.
122
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.63 | $ | 12.26 | $ | 12.28 | $ | 11.76 | $ | 12.06 | ||||||||||
0.33 | 0.33 | 0.35 | 0.37 | 0.37 | |||||||||||||||
(1.62 | ) | 0.37 | (0.02 | ) | 0.52 | (0.30 | ) | ||||||||||||
(1.29 | ) | 0.70 | 0.33 | 0.89 | 0.07 | ||||||||||||||
(0.33 | ) | (0.33 | ) | (0.35 | ) | (0.37 | ) | (0.37 | ) | ||||||||||
(0.33 | ) | (0.33 | ) | (0.35 | ) | (0.37 | ) | (0.37 | ) | ||||||||||
$ | 11.01 | $ | 12.63 | $ | 12.26 | $ | 12.28 | $ | 11.76 | ||||||||||
(10.33% | ) | 5.79% | 2.76% | 7.71% | 0.57% | ||||||||||||||
$ | 452,772 | $ | 564,932 | $ | 106,135 | $ | 123,691 | $ | 136,653 | ||||||||||
0.71% | 0.65% | 0.65% | 0.65% | 0.71% | |||||||||||||||
0.87% | 0.88% | 0.91% | 0.91% | 0.92% | |||||||||||||||
2.80% | 2.64% | 2.87% | 3.11% | 3.10% | |||||||||||||||
2.64% | 2.41% | 2.61% | 2.85% | 2.89% | |||||||||||||||
59% | 23% | 27% | 25% | 32% |
123
Financial highlights
Delaware Tax-Free USA Intermediate Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
124
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.62 | $ | 12.25 | $ | 12.27 | $ | 11.75 | $ | 12.05 | ||||||||||
0.24 | 0.23 | 0.24 | 0.27 | 0.27 | |||||||||||||||
(1.62 | ) | 0.37 | (0.02 | ) | 0.52 | (0.30 | ) | ||||||||||||
(1.38 | ) | 0.60 | 0.22 | 0.79 | (0.03 | ) | |||||||||||||
(0.24 | ) | (0.23 | ) | (0.24 | ) | (0.27 | ) | (0.27 | ) | ||||||||||
(0.24 | ) | (0.23 | ) | (0.24 | ) | (0.27 | ) | (0.27 | ) | ||||||||||
$ | 11.00 | $ | 12.62 | $ | 12.25 | $ | 12.27 | $ | 11.75 | ||||||||||
(11.04% | ) | 4.90% | 1.89% | 6.81% | (0.28% | ) | |||||||||||||
$ | 6,872 | $ | 7,497 | $ | 11,864 | $ | 22,874 | $ | 28,002 | ||||||||||
1.50% | 1.50% | 1.50% | 1.50% | 1.56% | |||||||||||||||
1.62% | 1.63% | 1.66% | 1.66% | 1.67% | |||||||||||||||
2.01% | 1.79% | 2.02% | 2.26% | 2.25% | |||||||||||||||
1.89% | 1.66% | 1.86% | 2.10% | 2.14% | |||||||||||||||
59% | 23% | 27% | 25% | 32% |
125
Financial highlights
Delaware Tax-Free USA Intermediate Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
126
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.75 | $ | 12.38 | $ | 12.40 | $ | 11.87 | $ | 12.17 | ||||||||||
0.36 | 0.35 | 0.37 | 0.39 | 0.39 | |||||||||||||||
(1.64 | ) | 0.37 | (0.02 | ) | 0.53 | (0.30 | ) | ||||||||||||
(1.28 | ) | 0.72 | 0.35 | 0.92 | 0.09 | ||||||||||||||
(0.36 | ) | (0.35 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | ||||||||||
(0.36 | ) | (0.35 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | ||||||||||
$ | 11.11 | $ | 12.75 | $ | 12.38 | $ | 12.40 | $ | 11.87 | ||||||||||
(10.17% | ) | 5.92% | 2.92% | 7.92% | 0.75% | ||||||||||||||
$ | 609,586 | $ | 649,184 | $ | 453,727 | $ | 399,830 | $ | 377,445 | ||||||||||
0.50% | 0.50% | 0.50% | 0.50% | 0.56% | |||||||||||||||
0.62% | 0.63% | 0.66% | 0.66% | 0.67% | |||||||||||||||
3.01% | 2.79% | 3.02% | 3.26% | 3.25% | |||||||||||||||
2.89% | 2.66% | 2.86% | 3.10% | 3.14% | |||||||||||||||
59% | 23% | 27% | 25% | 32% |
127
Financial highlights
Delaware National High-Yield Municipal Bond Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
128
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.04 | $ | 11.15 | $ | 11.48 | $ | 11.00 | $ | 11.05 | ||||||||||
0.44 | 0.42 | 0.44 | 0.46 | 0.46 | |||||||||||||||
(1.67 | ) | 0.91 | (0.33 | ) | 0.48 | (0.05 | ) | ||||||||||||
(1.23 | ) | 1.33 | 0.11 | 0.94 | 0.41 | ||||||||||||||
(0.43 | ) | (0.42 | ) | (0.44 | ) | (0.46 | ) | (0.46 | ) | ||||||||||
(0.03 | ) | (0.02 | ) | — | — | — | |||||||||||||
(0.46 | ) | (0.44 | ) | (0.44 | ) | (0.46 | ) | (0.46 | ) | ||||||||||
$ | 10.35 | $ | 12.04 | $ | 11.15 | $ | 11.48 | $ | 11.00 | ||||||||||
(10.49% | ) | 12.12% | 1.06% | 8.81% | 3.80% | ||||||||||||||
$ | 261,839 | $ | 247,542 | $ | 182,214 | $ | 208,549 | $ | 200,493 | ||||||||||
0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||||||||||||||
0.88% | 0.88% | 0.91% | 0.90% | 0.91% | |||||||||||||||
3.94% | 3.65% | 3.99% | 4.22% | 4.19% | |||||||||||||||
3.91% | 3.62% | 3.93% | 4.17% | 4.13% | |||||||||||||||
56% | 16% | 44% | 33% | 19% |
129
Financial highlights
Delaware National High-Yield Municipal Bond Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
130
Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.09 | $ | 11.20 | $ | 11.52 | $ | 11.04 | $ | 11.09 | ||||||||||
0.35 | 0.33 | 0.36 | 0.38 | 0.38 | |||||||||||||||
(1.67 | ) | 0.91 | (0.32 | ) | 0.48 | (0.05 | ) | ||||||||||||
(1.32 | ) | 1.24 | 0.04 | 0.86 | 0.33 | ||||||||||||||
(0.35 | ) | (0.33 | ) | (0.36 | ) | (0.38 | ) | (0.38 | ) | ||||||||||
(0.03 | ) | (0.02 | ) | — | — | — | |||||||||||||
(0.38 | ) | (0.35 | ) | (0.36 | ) | (0.38 | ) | (0.38 | ) | ||||||||||
$ | 10.39 | $ | 12.09 | $ | 11.20 | $ | 11.52 | $ | 11.04 | ||||||||||
(11.18% | ) | 11.25% | 0.41% | 7.98% | 3.03% | ||||||||||||||
$ | 46,410 | $ | 58,285 | $ | 68,993 | $ | 91,184 | $ | 92,155 | ||||||||||
1.60% | 1.60% | 1.60% | 1.60% | 1.60% | |||||||||||||||
1.63% | 1.63% | 1.66% | 1.65% | 1.66% | |||||||||||||||
3.19% | 2.90% | 3.24% | 3.47% | 3.44% | |||||||||||||||
3.16% | 2.87% | 3.18% | 3.42% | 3.38% | |||||||||||||||
56% | 16% | 44% | 33% | 19% |
131
Financial highlights
Delaware National High-Yield Municipal Bond Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income1 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return2 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Calculated using average shares outstanding. |
2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
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Year ended | |||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | |||||||||||||||
$ | 12.15 | $ | 11.26 | $ | 11.58 | $ | 11.10 | $ | 11.15 | ||||||||||
0.47 | 0.45 | 0.47 | 0.49 | 0.49 | |||||||||||||||
(1.68 | ) | 0.91 | (0.32 | ) | 0.48 | (0.05 | ) | ||||||||||||
(1.21 | ) | 1.36 | 0.15 | 0.97 | 0.44 | ||||||||||||||
(0.46 | ) | (0.45 | ) | (0.47 | ) | (0.49 | ) | (0.49 | ) | ||||||||||
(0.03 | ) | (0.02 | ) | — | — | — | |||||||||||||
(0.49 | ) | (0.47 | ) | (0.47 | ) | (0.49 | ) | (0.49 | ) | ||||||||||
$ | 10.45 | $ | 12.15 | $ | 11.26 | $ | 11.58 | $ | 11.10 | ||||||||||
(10.22% | ) | 12.32% | 1.44% | 9.03% | 4.07% | ||||||||||||||
$ | 1,544,505 | $ | 1,452,944 | $ | 1,095,548 | $ | 1,141,973 | $ | 1,017,167 | ||||||||||
0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |||||||||||||||
0.63% | 0.63% | 0.66% | 0.65% | 0.66% | |||||||||||||||
4.19% | 3.90% | 4.24% | 4.47% | 4.44% | |||||||||||||||
4.16% | 3.87% | 4.18% | 4.42% | 4.38% | |||||||||||||||
56% | 16% | 44% | 33% | 19% |
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Notes to financial statements | |
Delaware Funds by Macquarie® national tax-free funds | August 31, 2022 |
Delaware Group® Tax-Free Fund is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, and Delaware Tax-Free New York Fund. Delaware Group Tax-Free Fund and Voyageur Mutual Funds are each referred to as a Trust, or collectively, as the Trusts. These financial statements and the related notes pertain to Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund (each a Fund, or collectively, the Funds). Each Trust is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and 2.75% for Delaware Tax-Free USA Intermediate Fund. There is no front-end sales charge when you purchase $250,000 or more of Class A shares. However, if Delaware Distributors, L.P. (DDLP) paid your financial intermediary a commission on your purchase of $1,000,000 or more of Class A shares, for shares of Delaware National High-Yield Municipal Bond Fund prior to December 2, 2019 or for shares of Delaware Tax-Free USA Fund prior to July 1, 2020, you will have to pay a limited contingent deferred sales charge (Limited CDSC) of 1.00% if you redeem these shares within the first year after your purchase and 0.50% if you redeem shares within the second year or for shares of Delaware Tax-Free USA Intermediate Fund prior to December 2, 2019, you will have to pay a Limited CDSC of 0.75% if you redeem these shares within the first year after your purchase, unless a specific waiver of the Limited CDSC applies. If DDLP paid your financial intermediary a commission on your purchase of $250,000 or more of Class A shares, for shares of Delaware National High-Yield Municipal Bond Fund on or after December 2, 2019 or for shares of Delaware Tax-Free USA Fund on or after July 1, 2020, you will have to pay a Limited CDSC of 1.00% if you redeem these shares within the first 18 months after your purchase or for shares of Delaware Tax-Free USA Intermediate Fund on or after December 2, 2019, you will have to pay a Limited CDSC of 0.75% if you redeem these shares within the first year after your purchase; unless a specific waiver of the Limited CDSC applies. Class C shares are sold with a contingent deferred sales charge (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
134
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 Board.
Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the year ended August 31, 2022, and for all open tax years (years ended August 31, 2019–August 31, 2021), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the year ended August 31, 2022, 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
135
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
1. Significant Accounting Policies (continued)
calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the year ended August 31, 2022, each Fund earned the following amounts under this arrangement:
Fund | Earnings Credits | |||
Delaware Tax-Free USA Fund | $600 | |||
Delaware Tax-Free USA Intermediate Fund | 523 | |||
Delaware National High-Yield Municipal Bond Fund | 100 |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly based on each Fund’s average daily net assets as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||
On the first $500 million | 0.5500% | 0.5000% | 0.5500% | |||||||||
On the next $500 million | 0.5000% | 0.4750% | 0.5000% | |||||||||
On the next $1.5 billion | 0.4500% | 0.4500% | 0.4500% | |||||||||
In excess of $2.5 billion | 0.4250% | 0.4250% | 0.4250% |
DMC has contractually agreed to waive all or a portion of its management fee and/or pay/reimburse expenses (excluding any distribution and service (12b-1) fees, acquired fund fees and expenses, taxes, interest, short sale 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), in order to prevent total annual fund operating expenses from exceeding the following percentage of each Fund’s
136
average daily net assets from September 1, 2021 through August 31, 2022.* 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.
Fund | Operating expense limitation as a percentage of average daily net assets (per annum) | |||
Delaware Tax-Free USA Fund | 0.55% | |||
Delaware Tax-Free USA Intermediate Fund | 0.50% | |||
Delaware National High-Yield Municipal Bond Fund | 0.60% |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; 0.0025% of the next $45 billion; and 0.0015% of aggregate average daily net assets in excess of $90 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the year ended August 31, 2022, each Fund paid for these services as follows:
Fund | Fees | ||
Delaware Tax-Free USA Fund | $ | 36,133 | |
Delaware Tax-Free USA Intermediate Fund | 41,832 | ||
Delaware National High-Yield Municipal Bond Fund | 60,973 |
DIFSC is also the transfer agent and dividend disbursing agent of each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the year ended August 31, 2022, each Fund paid for these services as follows:
Fund | Fees | ||
Delaware Tax-Free USA Fund | $ | 89,048 | |
Delaware Tax-Free USA Intermediate Fund | 105,051 | ||
Delaware National High-Yield Municipal Bond Fund | 155,860 |
137
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to the Funds. Sub-transfer agency fees are paid by the Funds and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, Delaware National High-Yield Municipal Bond Fund pays DDLP, the distributor and an affiliate of DMC, an annual 12b-1 fee of 0.25% of the average daily net assets of the Class A shares. The Board for Delaware Tax-Free USA Fund has adopted a formula for calculating 12b-1 fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (1) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (2) 0.25% of average daily net assets representing shares that were acquired on or after June 1, 1992. All of the Fund’s Class A shareholders bear 12b-1 fees at the same blended rate, currently 0.25% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Each Fund pays 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay 12b-1 fees.
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal and regulatory reporting services to the Funds. These amounts are included on the “Statements of operations” under “Legal fees.” For the year ended August 31, 2022, each Fund paid for internal legal and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
Fund | Fees | ||
Delaware Tax-Free USA Fund | $ | 33,134 | |
Delaware Tax-Free USA Intermediate Fund | 37,093 | ||
Delaware National High-Yield Municipal Bond Fund | 51,487 |
For the year ended August 31, 2022, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Fund | Class A | ||
Delaware Tax-Free USA Fund | $ | 26,502 | |
Delaware Tax-Free USA Intermediate Fund | 6,918 | ||
Delaware National High-Yield Municipal Bond Fund | 13,210 |
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For the year ended August 31, 2022, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
Fund | Class A | Class C | |||||
Delaware Tax-Free USA Fund | $ | 30,136 | $ | 2,043 | |||
Delaware Tax-Free USA Intermediate Fund | 10,290 | 1,597 | |||||
Delaware National High-Yield Municipal Bond Fund | 53,612 | 8,797 |
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the year ended August 31, 2022, were executed by the Funds pursuant to procedures adopted by the Boards designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review a report related to the Funds’ compliance with the procedures adopted by the Board. Pursuant to these procedures, for the year ended August 31, 2022, the following Funds engaged in Rule 17a-7 securities purchases and securities sales, which resulted in net gains or losses as follows:
Purchases | Sales | Net realized gain (loss) | ||||||||
Delaware Tax-Free USA Fund | $ | 199,047,519 | $ | 215,029,725 | $(12,635,929) | |||||
Delaware Tax-Free USA Intermediate Fund | 181,242,998 | 157,790,569 | (11,836,904) | |||||||
Delaware National High-Yield Municipal Bond Fund | 603,819,935 | 563,440,710 | (52,179,118) |
*The aggregate contractual waiver period covering this report is from December 29, 2020 through December 29, 2022.
3. Investments
For the year ended August 31, 2022, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Fund | Purchases | Sales | ||||||
Delaware Tax-Free USA Fund | $ | 850,939,043 | $ | 700,805,343 | ||||
Delaware Tax-Free USA Intermediate Fund | 690,958,382 | 741,799,387 | ||||||
Delaware National High-Yield Municipal Bond Fund | 1,294,419,745 | 985,587,414 |
139
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
3. Investments (continued)
The tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be the final tax cost basis adjustments but which approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. At August 31, 2022, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes for each Fund were as follows:
Fund | Cost
of investments | Aggregate unrealized appreciation of investments | Aggregate unrealized depreciation of investments | Net
unrealized appreciation (depreciation) of investments | ||||||||||||
Delaware Tax-Free USA Fund | $ | 936,053,366 | $ | 11,499,500 | $ | (43,706,166 | ) | $ | (32,206,666 | ) | ||||||
Delaware Tax-Free USA Intermediate Fund | 1,089,125,951 | 13,898,861 | (41,208,442 | ) | (27,309,581 | ) | ||||||||||
Delaware National High-Yield Municipal Bond Fund | 1,945,868,594 | 42,943,111 | (149,241,824 | ) | (106,298,713 | ) |
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or |
140
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.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of August 31, 2022:
Delaware Tax-Free USA Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 875,806,700 | |||
Short-Term Investments | 28,040,000 | ||||
Total Value of Securities | $ | 903,846,700 | |||
Delaware Tax-Free USA Intermediate Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 1,031,601,370 | |||
Short-Term Investments | 30,215,000 | ||||
Total Value of Securities | $ | 1,061,816,370 |
141
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
3. Investments (continued)
Delaware National High-Yield Municipal Bond Fund | |||||
Level 2 | |||||
Securities | |||||
Assets: | |||||
Municipal Bonds | $ | 1,813,099,881 | |||
Short-Term Investments | 26,470,000 | ||||
Total Value of Securities | $ | 1,839,569,881 |
During the year ended August 31, 2022, there were no transfers into or out of Level 3 investments. Each Fund’s policy is to recognize transfers into or out of Level 3 investments 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 or end of the period in relation to each Fund’s net assets. During the year ended August 31, 2022, there were no Level 3 investments.
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Additionally, distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended August 31, 2022 and 2021 were as follows:
Tax-exempt income | Ordinary income | Long-term capital gains | Total | |||||||||||||
Year ended August 31, 2022: | ||||||||||||||||
Delaware Tax-Free USA Fund | $ | 28,365,692 | $ | 5,321,833 | $ | 9,644,264 | $ | 43,331,789 | ||||||||
Delaware Tax-Free USA Intermediate Fund | 34,384,378 | 56,749 | — | 34,441,127 | ||||||||||||
Delaware National High-Yield Municipal Bond Fund | 71,052,896 | 4,324,604 | 91,871 | 75,469,371 | ||||||||||||
Year ended August 31, 2021: | ||||||||||||||||
Delaware Tax-Free USA Fund | 26,906,497 | 370,943 | 4,387,140 | 31,664,580 | ||||||||||||
Delaware Tax-Free USA Intermediate Fund | 26,905,589 | 10,810 | — | 26,916,399 | ||||||||||||
Delaware National High-Yield Municipal Bond Fund | 56,883,957 | 1,187,337 | 2,269,417 | 60,340,711 |
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5. Components of Net Assets on a Tax Basis
As of August 31, 2022, the components of net assets on a tax basis were as follows:
Delaware Tax-Free USA Fund |
Delaware Tax-Free USA Intermediate Fund |
Delaware National High-Yield Municipal Bond Fund | |||||||||||||
Shares of beneficial interest | $ | 975,395,737 | $ | 1,137,430,522 | $ | 1,951,671,983 | |||||||||
Undistributed tax-exempt income | 438,968 | 346,999 | 872,446 | ||||||||||||
Undistributed long-term capital gains | — | — | 7,433,259 | ||||||||||||
Distributions payable | (616,431 | ) | (380,110 | ) | (924,688 | ) | |||||||||
Capital loss carryforwards | (30,578,460 | ) | (40,858,274 | )* | — | ||||||||||
Unrealized appreciation (depreciation) of investments | (32,206,666 | ) | (27,309,581 | ) | (106,298,713 | ) | |||||||||
Net assets | $ | 912,433,148 | $ | 1,069,229,556 | $ | 1,852,754,287 |
* A portion of the Fund’s capital loss carryforward is subject to limitation under the Internal Revenue Code and related regulations.
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales and tax treatment of discount and premium on debt instruments, as applicable.
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to in-kind distributions for shareholder redemptions. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2022, Delaware Tax-Free USA Fund had increase to paid-in-capital and decrease to distributable earnings of $1,632,187. Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Fund had no reclassifications.
At August 31, 2022, capital loss carryforwards available to offset future realized capital gains, are as follows:
Loss carryforward character | ||||||||||||
Short-term | Long-term | Total | ||||||||||
Delaware Tax-Free USA Fund | $ | 30,578,460 | $ | — | $ | 30,578,460 | ||||||
Delaware Tax-Free USA Intermediate Fund | 39,375,633 | 1,482,641 | 40,858,274 |
At August 31, 2022, there were no capital loss carryforwards for Delaware National High-Yield Municipal Bond Fund.
143
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
6. Capital Shares
Transactions in capital shares were as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | Delaware National High-Yield Municipal Bond Fund | ||||||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||||||
8/31/22 | 8/31/21 | 8/31/22 | 8/31/21 | 8/31/22 | 8/31/21 | |||||||||||||||||||
Shares sold: | ||||||||||||||||||||||||
Class A | 21,643,136 | 19,110,045 | 3,867,874 | 2,950,551 | 12,029,757 | 6,364,930 | ||||||||||||||||||
Class C | 317,604 | 267,155 | 239,606 | 110,949 | 1,024,094 | 820,318 | ||||||||||||||||||
Institutional Class | 30,397,160 | 8,792,678 | 44,237,789 | 18,574,271 | 97,284,036 | 35,382,590 | ||||||||||||||||||
Shares from merger:1 | ||||||||||||||||||||||||
Class A | — | 27,065,090 | — | 37,970,562 | — | — | ||||||||||||||||||
Institutional Class | — | 490,723 | — | 1,475,716 | — | — | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||||||||
Class A | 2,523,875 | 1,919,829 | 1,056,330 | 833,095 | 833,394 | 610,519 | ||||||||||||||||||
Class C | 28,962 | 22,237 | 12,554 | 13,956 | 146,115 | 155,294 | ||||||||||||||||||
Institutional Class | 833,445 | 450,802 | 1,495,970 | 1,003,154 | 4,757,740 | 3,517,918 | ||||||||||||||||||
55,744,182 | 58,118,559 | 50,910,123 | 62,932,254 | 116,075,136 | 46,851,569 | |||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||
Class A | (48,417,109 | ) | (13,023,321 | ) | (8,512,381 | ) | (5,681,539 | ) | (8,128,802 | ) | (2,749,864 | ) | ||||||||||||
Class C | (333,039 | ) | (409,050 | ) | (221,305 | ) | (498,982 | ) | (1,526,414 | ) | (2,314,658 | ) | ||||||||||||
Institutional Class | (12,898,965 | ) | (4,478,240 | ) | (41,779,806 | ) | (6,787,631 | ) | (73,781,566 | ) | (16,638,499 | ) | ||||||||||||
(61,649,113 | ) | (17,910,611 | ) | (50,513,492 | ) | (12,968,152 | ) | (83,436,782 | ) | (21,703,021 | ) | |||||||||||||
Net increase (decrease) | (5,904,931 | ) | 40,207,948 | 396,631 | 49,964,102 | 32,638,354 | 25,148,548 |
1 See Note 7.
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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 table on the previous page and on the “Statements of changes in net assets.” For the years ended August 31, 2022 and 2021, each Fund had the following exchange transactions:
Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||||||
Institutional | Institutional | |||||||||||||||||||||||
Class A Shares | Class C Shares | Class Shares | Class A Shares | Class Shares | Value | |||||||||||||||||||
Delaware Tax-Free USA Fund | ||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||
8/31/22 | 11,172 | 6,613 | — | 6,620 | 11,085 | $ | 201,168 | |||||||||||||||||
8/31/21 | 36,729 | 24,482 | — | 24,518 | 36,473 | 761,979 | ||||||||||||||||||
Delaware Tax-Free USA Intermediate Fund | ||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||
8/31/22 | 18,956 | 1,239 | — | 1,238 | 18,791 | 244,139 | ||||||||||||||||||
8/31/21 | 107,662 | 11,026 | 538 | 11,563 | 106,713 | 1,488,442 | ||||||||||||||||||
Delaware National High-Yield Municipal Bond Fund | ||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||
8/31/22 | 55,160 | 45,255 | — | 11,151 | 88,682 | 1,181,043 | ||||||||||||||||||
8/31/21 | 43,780 | 52,403 | 1,754 | 34,517 | 63,161 | 1,126,321 |
7. Reorganization
On August 12, 2020, the Board approved a proposal to reorganize (the “Reorganization”) Delaware Tax-Exempt Opportunities Fund and Delaware Tax-Exempt Income Fund (the “Acquired Funds”), each a series of Delaware Group® Limited-Term Government Funds, with and into Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund (the “Acquiring Funds”), each a series of the Trust, respectively. Pursuant to an Agreement and Plan of Reorganization (the “Plan”): (i) all of the property, assets, and goodwill of the Acquired Funds were acquired by the Acquiring Funds, and (ii) the Trust, on behalf of the Acquiring Funds, assumed the liabilities of the Acquired Funds, in exchange for shares of the Acquiring Funds. In accordance with the Plan, the Acquired Funds liquidated and dissolved following the Reorganization. The purpose of the transaction was to allow shareholders of the Acquired Funds to own shares of the Acquiring Funds, funds with a similar investment objective and style as, and potentially lower net expenses than the Acquired Funds. The Reorganization was accomplished by a tax-free exchange of shares on December 4, 2020. For financial reporting purposes, assets received and shares issued by the Acquiring Funds were recorded at fair value; however, the cost basis of the investments received from the Acquired Funds was carried forward to align ongoing reporting of the Acquiring Funds’ realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
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Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
7. Reorganization (continued)
The share transactions associated with the Reorganization are as follows:
Acquired Fund Net Assets | Acquired Fund Shares Outstanding | Shares Converted to Acquiring Fund | Acquiring Fund Net Assets | Conversion Ratio | ||||||||||||||||
Delaware Tax-Exempt Opportunities Fund | Delaware Tax-Free USA Fund | |||||||||||||||||||
Class A | $ | 328,299,539 | 19,434,282 | 27,065,090 | $ | 496,595,841 | 1.393 | |||||||||||||
Class C | — | — | — | 10,599,349 | — | |||||||||||||||
Institutional Class | 5,996,641 | 354,397 | 490,723 | 131,648,773 | 1.385 | |||||||||||||||
Acquired Fund Net Assets | Acquired Fund Shares Outstanding | Shares Converted to Acquiring Fund | Acquiring Fund Net Assets | Conversion Ratio | ||||||||||||||||
Delaware Tax-Exempt Income Fund | Delaware Tax-Free USA Intermediate Fund | |||||||||||||||||||
Class A | $ | 470,834,974 | 49,412,013 | 37,970,562 | $ | 108,082,382 | 0.768 | |||||||||||||
Class C | — | — | — | 11,623,405 | — | |||||||||||||||
Institutional Class | 18,475,967 | 1,938,317 | 1,475,716 | 474,092,009 | 0.761 |
The net assets of the Acquiring Funds before the Reorganization were $638,843,963 and $593,797,796. The net assets of the Acquiring Funds immediately following the Reorganization were $973,140,143 and $1,083,108,737.
Assuming the Reorganization had been completed on September 1, 2020, the Acquiring Funds’ pro forma results of operations for the year ended August 31, 2021, would have been as follows:
Delaware Tax-Free USA Fund | Delaware Tax-Free USA Intermediate Fund | |||||||||
Net investment income | $ | 37,814,794 | $ | 41,528,548 | ||||||
Net realized gain on investments | 16,302,449 | 7,470,384 | ||||||||
Net change in unrealized appreciation | 41,284,161 | 27,642,344 | ||||||||
Net increase in net assets resulting from operations | $ | 95,401,404 | $ | 76,641,276 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practical to separate the amounts of revenue and earnings of the Acquired Funds that have been included in the Acquiring Funds’ “Statements of changes in net assets” since the Reorganization was consummated on December 4, 2020.
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8. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $225,000,000 revolving line of credit (Agreement) intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the Agreement, the Participants were charged an annual commitment fee of 0.15% with the addition of an upfront fee of 0.05%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum of one-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on November 1, 2021.
On November 1, 2021, each Fund, along with the other Participants, entered into an amendment to the Agreement for a $355,000,000 revolving line of credit to be used as described above and operates in substantially the same manner as the original Agreement. Under the amendment to the agreement, the Participants are charged an annual commitment fee of 0.15% which is allocated across the Participants based on a weighted average of the respective net assets of each Participant. The line of credit available under the Agreement expires on October 31, 2022.
Each Fund had no amounts outstanding as of August 31, 2022, or at any time during the year then ended.
9. Securities Lending
Delaware Tax-Free USA Intermediate Fund, along with other funds in 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.
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Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
9. Securities Lending (continued)
Cash collateral received by the 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; certain money market funds; and asset-backed securities. The Fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Fund, the security lending agent, and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower.
The Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of the Fund’s cash collateral account may be less than the amount the Fund would be required to return to the borrowers of the securities and the Fund would be required to make up for this shortfall.
During the year ended August 31, 2022, Delaware Tax-Free USA Intermediate Fund had no securities out on loan. For the year ended August 31, 2022, Delaware Tax-Fee USA Fund and Delaware National High-Yield Municipal Bond Fund were not included in the Lending Agreement.
10. Geographic, Credit, and Market Risks
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand, and general market uncertainty. The effects
148
of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations, and individual issuers, all of which may negatively impact the Funds’ performance.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
IBOR is the risk that changes related to the use of the London interbank offered rate (LIBOR) and other interbank offered rate (collectively, IBORs) could have adverse impacts on financial instruments that reference LIBOR (or the corresponding IBOR). The abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR. The use of alternative reference rate products may impact investment strategy performance. These risks may also apply with respect to changes in connection with other IBORs, such as the euro overnight index average (EONIA), which are also the subject of recent reform.
The Funds concentrate their investments in securities issued by municipalities, and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam, whose bonds are also free of federal and individual state income taxes.
The value of the Funds’ investments may be adversely affected by new legislation within the US states or territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund.
As of August 31, 2022, Delaware Tax-Free USA Fund invested in municipal bonds issued by the states of California, Illinois, New York, and territory of Puerto Rico, which constituted approximately 12.46%, 10.62%, 11.49%, and 17.74%, respectively, of the Fund’s net assets. As of August 31, 2022, Delaware Tax-Free USA Intermediate Fund invested in municipal bonds issued by the states of California, New York, and territory of Puerto Rico, which constituted approximately 12.06%, 16.11%, and 11.79%, respectively, of the Fund’s net assets. As of August 31, 2022, Delaware National High-Yield Municipal Bond Fund invested in municipal bonds issued by the state of California and territory of Puerto Rico which constituted approximately 10.08% and 17.85%, respectively, the Fund’s net assets. These investments could make each Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds.
Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s Financial Services LLC (S&P), lower than Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally
149
Notes to financial statements
Delaware Funds by Macquarie® national tax-free funds
10. Geographic, Credit, and Market Risks (continued)
recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Each Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. Each Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Each Fund may invest in advance refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest-bearing debt securities, which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered “pre-refunded” when the refunding issuer’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, the day-to-
150
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.”
11. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
12. In-Kind Redemption
During the year ended August 31, 2022, Delaware Tax-Free USA Fund satisfied withdrawal requests with transfers of securities of $266,484,556, resulting in net realized gains of $1,632,187.
13. Recent Accounting Pronouncements
In March 2020, FASB issued an Accounting Standards Update (ASU), ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. In March 2021, the administrator for LIBOR announced the extension of the publication of a majority of the USD LIBOR settings to June 30, 2023. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. As of the financial reporting period, Management is evaluating the impact of applying this ASU.
14. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to August 31, 2022, that would require recognition or disclosure in the Funds’ financial statements.
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Report of independent registered public accounting firm
To the Board of Trustees of Delaware Group® Tax-Free Fund and Voyageur Mutual Funds and Shareholders of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund (constituting Delaware Group® Tax Free Fund) and Delaware National High-Yield Municipal Bond Fund (one of the funds constituting Voyageur Mutual Funds) (hereafter collectively referred to as the “Funds”) as of August 31, 2022, the related statements of operations for the year ended August 31, 2022, the statements of changes in net assets for each of the two years in the period ended August 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2022, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2022 and each of the financial highlights for each of the five years in the period ended August 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2022 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2022
We have served as the auditor of one or more investment companies in Delaware Funds by Macquarie® since 2010.
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Other Fund information (Unaudited)
Delaware Funds by Macquarie® national tax-free funds
Liquidity Risk Management Program
The Securities and Exchange Commission (the “SEC”) has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”), which requires all open-end funds (other than money market funds) to adopt and implement a program reasonably designed to assess and manage the fund’s “liquidity risk,” defined as the risk that the fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Funds have adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Board has designated a member of the US Operational Risk Group of Macquarie Asset Management as the Program Administrator for each Fund in the Trust.
As required by the Liquidity Rule, the Program includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each of the Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of each Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting each Fund’s acquisition of Illiquid investments if, immediately after the acquisition, each Fund would hold more than 15% of its net assets in Illiquid assets. The Program also requires reporting to the SEC (on a non-public basis) and to the Board if each Fund’s holdings of Illiquid assets exceed 15% of each Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).
In assessing and managing each Fund’s liquidity risk, the Program Administrator considers, as relevant, a variety of factors, including: (1) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Funds during both normal and reasonably foreseeable stressed conditions; and (3) each Fund’s holdings of cash and cash equivalents and any borrowing arrangements. Classification of each Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or to sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value. Each Fund primarily holds assets that are classified as Highly Liquid, and therefore is not required to establish an HLIM.
At a meeting of the Board held on May 17-19, 2022, the Program Administrator provided the required written annual report to the Board addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from April 1, 2021 through March 31, 2022. The report concluded that the Program is appropriately designed and effectively implemented and that it meets the requirements of Rule 22e-4 and each Fund’s liquidity needs. Each Fund’s HLIM is set at an appropriate level and the Funds complied with their HLIM at all times during the reporting period.
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Other Fund information (Unaudited)
Delaware Funds by Macquarie® national tax-free funds
Tax Information
The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of the Funds.
Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information. All disclosures are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring reporting, it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the fiscal year ended August 31, 2022, each Fund reports distributions paid during the year as follows:
(A) Long-Term Capital Gains Distributions (Tax Basis) |
(B) Ordinary Income Distributions (Tax Basis) |
(C) Tax-Exempt Distributions (Tax Basis) |
Total Distributions (Tax Basis) |
||||||
Delaware Tax-Free USA Fund | 22.26% | 12.28% | 65.46% | 100.00% | |||||
Delaware Tax-Free USA Intermediate Fund | — | 0.16% | 99.84% | 100.00% | |||||
Delaware National High-Yield Municipal Bond Fund | 0.12% | 5.73% | 94.15% | 100.00% | |||||
(A), (B) and (C) are based on a percentage of each Fund’s total distributions.
Board consideration of Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund at a meeting held August 9-11, 2022
At a meeting held on August 9-11, 2022 (the “Annual Contract Renewal Meeting”), the Board of Trustees (the “Board”), including a majority of Trustees each of whom is not an “interested person” as defined under the Investment Company Act of 1940 (the “Independent Trustees”), approved the renewal of the Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate
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Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies, and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory contracts. Information furnished specifically in connection with the renewal of the Investment Management Agreement with Delaware Management Company (“DMC”) included materials provided by DMC and its affiliates concerning, among other things, the nature, extent, and quality of services provided to the Funds, the costs of such services to the Funds; economies of scale; and the investment manager’s financial condition and profitability. In addition, in connection with the Annual Contract Renewal Meeting, materials were provided to the Trustees in May 2022, including reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; comparative client fee information; brokerage reports; and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’s ability to invest fully in accordance with Fund policies.
In considering information relating to the approval of each Fund’s advisory agreement, the Independent Trustees received assistance and advice from and met separately with independent legal counsel to the Independent Trustees and also received assistance and advice from an experienced and knowledgeable independent fund consultant, JDL Consultants, LLC (“JDL”). Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.
Nature, extent, and quality of services. The Board considered the services provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Funds by Macquarie® (“Delaware Funds”); and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of DMC and the emphasis placed on research in the investment process. The Board gave favorable consideration to DMC’s efforts to control expenses while maintaining service levels committed to Fund matters. The Board also noted the benefits provided to Fund shareholders through (a) each shareholder’s ability to: (i) exchange an investment in one Delaware Fund for the same class of shares in another Delaware Fund without a sales charge, or (ii) reinvest Fund dividends into additional shares of the Fund or into additional shares of other Delaware Funds,
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Other Fund information (Unaudited)
Delaware Funds by Macquarie® national tax-free funds
Board consideration of Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund at a meeting held August 9-11, 2022 (continued)
and (b) the privilege to combine holdings in other Delaware Funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent, and quality of the overall services provided by DMC.
Investment performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board considered performance reports and discussions with portfolio managers at meetings of the Fixed Income, Multi-Asset and Sub-advised Fund Investments (“FIMASAF”) Committee throughout the year, the Board gave particular weight to the Broadridge reports furnished for the Annual Contract Renewal Meeting. The Broadridge reports prepared for each Fund showed the Fund’s investment performance in comparison to a group of similar funds (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past 1-, 3-, 5-, and 10-year periods, to the extent applicable, ended December 31, 2021. The Board’s objective is that each Fund perform above median relative to its peer group for the majority of its 1-, 3-, and 5-year relative performance periods.
Delaware National High-Yield Municipal Bond Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional high yield municipal debt funds, regardless of asset size or primary channel of distribution, as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, and 5-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free USA Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional general and insured municipal debt funds, regardless of asset size or primary channel of distribution, as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, and 5-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free USA Intermediate Fund – The Performance Universe for the Fund consisted of the Fund and all retail and institutional intermediate municipal debt funds, regardless of asset size or primary distribution channel, as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, and 5-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Comparative expenses. The Board considered expense data for the Delaware Funds. Management provided the Board with information on pricing levels and fee structures for each Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of contractual management fees and actual total expense ratios of each Fund versus contractual management fees and actual total expense ratios of a group of similar funds as
156
selected by Broadridge (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds were similar in size to the Fund) and actual management fees, taking into account any applicable breakpoints and fee waivers, with the Fund’s expense universe, which is comprised of the Fund, its Expense Group and all other similar institutional funds, excluding outliers (the “Expense Universe”). Each Fund’s total expenses were also compared with those of its Expense Universe. The Broadridge total expenses, for comparative consistency, were shown by Broadridge for Institutional Class shares and comparative total expenses including 12b-1 and non-12b-1 service fees. The Board’s objective is for each Fund’s actual total expense ratio to be competitive with those of the peer funds within its Expense Group.
Delaware National High-Yield Municipal Bond Fund – The expense comparisons for the Fund showed that its actual management fee was below the median of its Expense Universe and its actual total expenses were in the quartile with the highest expenses of its Expense Group average. The Board gave favorable consideration to the Fund’s management fee but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2022 and the likelihood that those waivers would be continued. The Board was satisfied with Management’s commitment to bring the Fund’s total expenses in line with the Board’s objective. The Board also acknowledged that the Fund’s management fee remained reasonable in the light of its short- and long-term performance record on both an absolute and comparative basis.
Delaware Tax-Free USA Fund – The expense comparisons for the Fund showed that its actual management fee was above the median of its Expense Universe and its actual total expenses were in the quartile with the second highest expenses of its Expense Group average. The Board gave favorable consideration to the Fund’s management fee but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2022 and the likelihood that those waivers would be continued. The Board was satisfied with Management’s commitment to bring the Fund’s total expenses in line with the Board’s objective. The Board also acknowledged that the Fund’s management fee remained reasonable in the light of its short- and long-term performance record on both an absolute and comparative basis.
Delaware Tax-Free USA Intermediate Fund – The expense comparisons for the Fund showed that its actual management fee was below the median of its Expense Universe and its actual total expenses were in the quartile with the highest expenses of its Expense Group average. The Board gave favorable consideration to the Fund’s management fee but noted that the Fund’s actual total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2022 and the likelihood that those waivers would be continued. The Board was satisfied with Management’s commitment to bring the Fund’s total expenses in line with the Board’s objective. The Board also acknowledge that the Fund’s management fee remained reasonable in the light of its short- and long-term performance record on both an absolute and comparative basis.
157
Other Fund information (Unaudited)
Delaware Funds by Macquarie® national tax-free funds
Board consideration of Investment Advisory Agreements for Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund, and Delaware Tax-Free USA Intermediate Fund at a meeting held August 9-11, 2022 (continued)
Management profitability. The Board considered the level of profits realized by DMC in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of DMC’s business in providing management and other services to each of the individual funds and the Delaware Funds as a whole. Specific attention was given to the methodology used by DMC in allocating costs for the purpose of determining profitability. The Board considered DMC’s efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission (SEC) initiatives. The Board also considered the extent to which DMC might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. As part of its work, the Board also reviewed a report prepared by JDL regarding DMC’s profitability as compared to certain peer fund complexes and the Independent Trustees discussed with JDL personnel regarding DMC’s profitability in such context. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC.
Economies of scale. The Trustees considered whether economies of scale are realized by DMC as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed each Fund’s advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints, and which applies to most funds in the Delaware Funds complex. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case in the absence of breakpoints, when the asset levels specified in the breakpoints are exceeded. The Board noted that, as of March 31, 2022, each Fund’s net assets exceeded the second breakpoint level. The Board believed that, given the extent to which economies of scale might be realized by DMC and its affiliates, the schedule of fees under the Investment Management Agreement provides a sharing of benefits with the Fund and its shareholders.
158
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Interested Trustee | |||||||||||
Shawn K. Lytle1 100 Independence 610 Market Street Philadelphia, PA 19106-2354 February 1970 |
President, Chief Executive Officer, and Trustee |
President and Chief Executive Officer since August 2015 Trustee since September 2015 |
128 | Macquarie Asset Management2
(2015–Present) -Global Head of Macquarie Asset Management (2019–Present) -Head of Americas of Macquarie Group (2017–Present) -Deputy Global Head of Macquarie Asset Management (2017–2019) -Head of Macquarie Asset Management Americas (2015–2017) |
None |
159
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Independent Trustees | |||||||||||
Jerome D. Abernathy 100 Independence 610 Market Street Philadelphia, PA 19106-2354 July 1959 |
Trustee | Since January 2019 | 128 | Stonebrook Capital Management, LLC (financial
technology: macro factors and databases) -Managing Member (1993-Present) |
None | ||||||
Thomas L. Bennett 100 Independence 610 Market Street Philadelphia, PA 19106-2354 October 1947 |
Chair and Trustee | Trustee since March 2005 Chair since March 2015 | 128 | Private Investor (2004–Present) | None | ||||||
Ann D. Borowiec 100 Independence 610 Market Street Philadelphia, PA 19106-2354 November 1958 |
Trustee | Since March 2015 | 128 | J.P. Morgan Chase & Co. (1987-2013)
-Chief Executive Officer, Private Wealth Management (2011–2013) |
Banco Santander International (2016–2019) Santander Bank, N.A. (2016-2019) |
160
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Joseph W. Chow 100 Independence 610 Market Street Philadelphia, PA 19106-2354 January 1953 |
Trustee | Since January 2013 | 128 | Private Investor (2011–Present) | None | ||||||
H. Jeffrey Dobbs3 100 Independence 610 Market Street Philadelphia, PA 19106-2354 May 1955 |
Trustee | Since December 2021 | 128 | KPMG LLP (2010-2015) -Global Sector Chairman, Industrial Manufacturing (2010-2015) |
TechAccel LLC (2015–Present) PatientsVoices, Inc. (2018–Present) Valparaiso University Board (2012-Present) Ivy Funds Complex (2019-2021) |
161
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
John A. Fry 100 Independence 610 Market Street Philadelphia, PA 19106-2354 May 1960 |
Trustee | Since January 2001 | 128 | Drexel University -President (August 2010–Present) |
Federal Reserve Bank of Philadelphia
(2020–Present) FS Credit Real Estate Income Trust, Inc. (2018–Present) vTv Therapeutics Inc. (2017–Present) Community Health Systems (2004–Present) Drexel Morgan & Co. (2015–2019) |
162
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Joseph Harroz, Jr.3 100 Independence 610 Market Street Philadelphia, PA 19106-2354 January 1967 |
Trustee | Since December 2021 | 128 | University of Oklahoma -President (2020–Present) -Interim President (2019–2020) -Vice President and Dean, College of Law (2010–2019) Brookhaven Investments LLC (commercial enterprises) -Managing Member (2019–Present) St. Clair, LLC (commercial enterprises) -Managing Member (2019–Present) |
OU Medicine, Inc. (2020–Present)
Big 12 Athletic Conference (2019-Present) Valliance Bank (2007–Present) Ivy Funds (1998-2021) |
163
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Sandra A.J. Lawrence3 100 Independence 610 Market Street Philadelphia, PA 19106-2354 September 1957 |
Trustee | Since December 2021 | 128 | Children’s Mercy Hospitals
and Clinics (2005–2019) -Chief Administrative Officer (2016–2019) |
Brixmor Property Group Inc.
(2021-Present) Sera Prognostics Inc. (biotechnology) (2021-Present) Recology (resource recovery) (2021-Present) Evergy, Inc., Kansas City Power & Light Company, KCP&L Greater Missouri Operations Company, Westar Energy, Inc. and Kansas Gas and Electric Company (related utility companies) (2018-Present) National Association of Corporate Directors (2017-Present) Ivy Funds Complex (2019-2021) American Shared Hospital Services (medical device) (2017-2021) Ivy NextShares (2019) Westar Energy (utility) (2004-2018) |
164
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Frances A. Sevilla-Sacasa 100 Independence 610 Market Street Philadelphia, PA 19106-2354 January 1956 |
Trustee | Since September 2011 | 128 | Banco Itaú International
-Chief Executive Officer (2012–2016) |
Florida Chapter of National
Association of Corporate Directors (2021-Present) Callon Petroleum Company (2019-Present) Camden Property Trust (2011-Present) New Senior Investment Group Inc. (2021) Carrizo Oil & Gas, Inc. (2018-2019) |
||||||
Thomas K. Whitford 100 Independence 610 Market Street Philadelphia, PA 19106-2354 March 1956 |
Trustee | Since January 2013 | 128 | PNC Financial Services Group (1983–2013)
-Vice Chairman (2009-2013) |
HSBC USA Inc. (2014–Present) HSBC North America Holdings Inc. (2013–Present) HSBC Finance Corporation (2013–2018) |
165
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Christianna Wood 100 Independence 610 Market Street Philadelphia, PA 19106-2354 August 1959 |
Trustee | Since January 2019 | 128 | Gore Creek Capital, Ltd. -Chief Executive Officer and President (2009–Present) |
The Merger Fund (2013–2021),
The Merger Fund VL (2013–2021), WCM Alternatives: Event-Driven Fund (2013–2021), and WCM Alternatives: Credit Event Fund (2017–2021) Grange Insurance (2013–Present) H&R Block Corporation (2008–Present) |
166
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Janet L. Yeomans 100 Independence 610 Market Street Philadelphia, PA 19106-2354 July 1948 |
Trustee | Since April 1999 | 128 | 3M Company (1995-2012) -Vice President and Treasurer (2006–2012) |
Okabena Company (2009–2017) | ||||||
Officers | |||||||||||
David F. Connor 100 Independence 610 Market Street Philadelphia, PA 19106-2354 December 1963 |
Senior Vice President, General Counsel, and Secretary | Senior Vice President, since May 2013; General Counsel since May 2015; Secretary since October 2005 |
128 | David F. Connor has served in various capacities at different times at Macquarie Asset Management. | None4 | ||||||
Daniel V. Geatens 100 Independence 610 Market Street Philadelphia, PA 19106-2354 October 1972 |
Senior Vice President and Treasurer | Senior Vice President and Treasurer since October 2007 | 128 | Daniel V. Geatens has served in various capacities at different times at Macquarie Asset Management. | None4 |
167
Board of trustees / directors and officers addendum
Delaware Funds by Macquarie®
Name, Address, and Birth Date |
Position(s) Held with the Trust |
Length
of Time Served |
Number
of Funds in Fund Complex Overseen by Trustee |
Principal Occupation(s) During the Past Five Years |
Other Directorships Held by Trustee During the Past Five Years |
||||||
Richard Salus 100 Independence 610 Market Street Philadelphia, PA 19106-2354 October 1963 |
Senior Vice President and Chief Financial Officer | Senior Vice President and Chief Financial Officer since November 2006 | 128 | Richard Salus has served in various capacities at different times at Macquarie Asset Management. | None |
1 | Shawn K. Lytle is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor. |
2 | Macquarie Asset Management is the marketing name for Macquarie Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent. |
3 | Messrs. Dobbs and Harroz and Ms. Lawrence were elected as Trustees of the Trust effective December 17, 2021. |
4 | David F. Connor and Daniel V. Geatens serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant. Mr. Geatens also serves as the Chief Financial Officer of the Optimum Fund Trust and he is the Chief Financial Officer and Treasurer for Macquarie Global Infrastructure Total Return Fund Inc. |
The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.
168
Board of trustees
Shawn K. Lytle Jerome D. Abernathy Thomas L. Bennett |
Ann D. Borowiec Joseph W. Chow H. Jeffrey Dobbs |
John A. Fry Joseph Harroz, Jr. Sandra A.J. Lawrence |
Frances A.
Sevilla-Sacasa Thomas K. Whitford Christianna Wood Janet L. Yeomans | |||
Affiliated officers | ||||||
David F. Connor Senior Vice President, General Counsel, and Secretary Delaware Funds by Macquarie |
Daniel V. Geatens Senior Vice President and Treasurer Delaware Funds by Macquarie |
Richard Salus Senior Vice President and Chief Financial Officer Delaware Funds by Macquarie |
This annual report is for the information of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawarefunds.com/literature.
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT. Each Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent Form N-PORT are available without charge on the Funds’ website at delawarefunds.com/literature. Each Fund’s Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds' website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
169
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Delaware Funds by Macquarie® Internet Web site at www.delawarefunds.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
H. Jeffrey Dobbs
John A. Fry
Sandra A.J. Lawrence
Frances Sevilla-Sacasa, Chair
Item 4. Principal Accountant Fees and Services
(a) Audit fees.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $78,794 for the fiscal year ended August 31, 2022.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $72,288 for the fiscal year ended August 31, 2021.
(b) Audit-related fees.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2022.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $2,050,189 for the registrant’s fiscal year ended August 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year end audit procedures; group reporting and subsidiary statutory audits.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2021.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $958,376 for the registrant’s fiscal year ended August 31, 2021. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year end audit procedures; group reporting and subsidiary statutory audits.
(c) Tax fees.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $10,594 for the fiscal year ended August 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $11,000 for the fiscal year ended August 31, 2021. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2021. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
(d) All other fees.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2022.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2021.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2021. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Funds by Macquarie®.
Service |
Range of Fees |
Audit Services |
|
Statutory audits or financial audits for new Funds |
up to $50,000 per Fund |
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters |
up to $10,000 per Fund |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) |
up to $25,000 in the aggregate |
Audit-Related Services |
|
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) |
up to $25,000 in the aggregate |
Tax Services |
|
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) |
up to $25,000 in the aggregate |
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) |
up to $5,000 per Fund |
Review of federal, state, local and international income, franchise and other tax returns |
up to $5,000 per Fund |
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
Service |
Range of Fees |
Non-Audit Services |
|
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters |
up to $10,000 in the aggregate |
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $9,044,000 and $9,044,000 for the registrant’s fiscal years ended August 31, 2022 and August 31, 2021, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)) and provide 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 (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
(a) (1) Code of Ethics
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
DELAWARE GROUP® TAX-FREE FUND
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | November 4, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | November 4, 2022 |
/s/ RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | November 4, 2022 |