UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF
PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
| Investment Company Act file number: | 811-03910 | |
| Exact name of registrant as specified in charter: | Voyageur Tax Free Funds | |
| Address of principal executive offices: | 2005 Market Street | |
| Philadelphia, PA 19103 | ||
| Name and address of agent for service: | David F. Connor, Esq. | |
| 2005 Market Street | ||
| Philadelphia, PA 19103 | ||
| Registrant’s telephone number, including area code: | (800) 523-1918 | |
| Date of fiscal year end: | August 31 | |
| Date of reporting period: | May 31, 2014 |
Item 1. Schedule of Investments.
| Schedule of investments | |
| Delaware Tax-Free Minnesota Fund | May 31, 2014 (Unaudited) |
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds – 98.29% | |||||
| Corporate-Backed Revenue Bonds – 3.84% | |||||
| Cloquet Pollution Control Revenue | |||||
| (Potlatch Project) 5.90% 10/1/26 | 7,000,000 | $ | 7,004,410 | ||
| Laurentian Energy Authority I Cogeneration Revenue | |||||
| Series A 5.00% 12/1/21 | 8,000,000 | 7,749,600 | |||
| St. Paul Port Authority Solid Waste Disposal Revenue | |||||
| (Gerdau St. Paul Steel Mill Project) | |||||
| Series 7 4.50% 10/1/37 (AMT) | 7,530,000 | 6,907,570 | |||
| 21,661,580 | |||||
| Education Revenue Bonds – 9.00% | |||||
| Duluth Housing & Redevelopment Authority Revenue | |||||
| (Public School Academy) Series A 5.875% 11/1/40 | 3,500,000 | 3,632,195 | |||
| Forest Lake Charter School Revenue Fund | |||||
| (Forest Lake International Language Academy) | |||||
| Series A 5.50% 8/1/36 | 580,000 | 612,805 | |||
| Series A 5.75% 8/1/44 | 1,190,000 | 1,261,352 | |||
| Minnesota Colleges & Universities Revenue Fund | |||||
| Series A 5.00% 10/1/20 | 1,060,000 | 1,265,905 | |||
| Series A 5.00% 10/1/21 | 1,340,000 | 1,614,003 | |||
| Series A 5.00% 10/1/28 | 8,900,000 | 10,074,711 | |||
| Series A 5.00% 10/1/29 (NATL-RE) | 5,665,000 | 5,966,888 | |||
| Minnesota Higher Education Facilities Authority Revenue | |||||
| (Augsburg College) | |||||
| Series 6-C 5.00% 5/1/20 | 1,250,000 | 1,252,375 | |||
| Series 6-J1 5.00% 5/1/36 | 2,225,000 | 2,236,926 | |||
| (Bethel University) Series 6-R 5.50% 5/1/37 | 2,500,000 | 2,558,750 | |||
| (Carleton College) | |||||
| Series 6-T 5.00% 1/1/28 | 1,000,000 | 1,113,770 | |||
| Series 7-D 5.00% 3/1/30 | 1,500,000 | 1,690,740 | |||
| (St. Catherine University) | |||||
| Series 7-Q 5.00% 10/1/21 | 1,300,000 | 1,484,262 | |||
| Series 7-Q 5.00% 10/1/23 | 350,000 | 397,887 | |||
| Series 7-Q 5.00% 10/1/24 | 475,000 | 533,591 | |||
| Series 7-Q 5.00% 10/1/27 | 200,000 | 218,344 | |||
| (St. Scholastica College) Series 7-J 6.30% 12/1/40 | 1,800,000 | 2,022,030 | |||
| (University of St. Thomas) | |||||
| Series 6-X 5.25% 4/1/39 | 5,000,000 | 5,461,700 | |||
| Series 7-A 5.00% 10/1/39 | 2,000,000 | 2,140,260 | |||
| Series 7-U 5.00% 4/1/23 | 550,000 | 656,243 | |||
| University of Minnesota | |||||
| Series A 5.25% 12/1/28 | 1,000,000 | 1,194,050 | |||
| Series A 5.25% 12/1/29 | 1,850,000 | 2,200,316 | |||
NQ-301 [5/14] 7/14 (12800) 1
Schedule of investments
Delaware Tax-Free Minnesota Fund (Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Education Revenue Bonds (continued) | |||||
| University of Minnesota | |||||
| Series D 5.00% 12/1/27 | 1,000,000 | $ | 1,167,760 | ||
| 50,756,863 | |||||
| Electric Revenue Bonds – 4.07% | |||||
| Chaska Electric Revenue | |||||
| (Generating Facilities) Series A 5.00% 10/1/30 | 3,000,000 | 3,138,510 | |||
| Hutchinson Utilities Commission Revenue | |||||
| Series A 4.00% 12/1/21 | 700,000 | 775,922 | |||
| Series A 5.00% 12/1/19 | 520,000 | 607,682 | |||
| Minnesota Municipal Power Agency Electric Revenue | |||||
| 5.00% 10/1/35 | 3,000,000 | 3,138,510 | |||
| Series A 5.00% 10/1/34 | 4,750,000 | 4,819,825 | |||
| Series A 5.125% 10/1/29 | 3,000,000 | 3,045,450 | |||
| Northern Municipal Power Agency Revenue | |||||
| Series A 5.00% 1/1/25 | 125,000 | 146,533 | |||
| Series A 5.00% 1/1/26 | 425,000 | 494,326 | |||
| Series A 5.00% 1/1/31 | 520,000 | 584,995 | |||
| Rochester Electric Utility Revenue | |||||
| Series B 5.00% 12/1/27 | 295,000 | 351,510 | |||
| Series B 5.00% 12/1/28 | 275,000 | 326,076 | |||
| Series B 5.00% 12/1/31 | 1,365,000 | 1,587,427 | |||
| Series B 5.00% 12/1/33 | 300,000 | 344,874 | |||
| Southern Minnesota Municipal Power Agency | |||||
| Power Supply Revenue | |||||
| Capital Appreciation Series A | |||||
| 6.70% 1/1/25 (NATL-RE) ^ | 5,000,000 | 3,599,000 | |||
| 22,960,640 | |||||
| Healthcare Revenue Bonds – 41.11% | |||||
| Aitkin Health Care Facilities Revenue | |||||
| (Riverwood Health Care Center) 5.60% 2/1/32 | 2,100,000 | 2,128,875 | |||
| Alexandria Senior Housing Revenue | |||||
| (Knute Nelson Senior Living) | |||||
| 6.00% 7/1/35 | 1,500,000 | 1,579,155 | |||
| 6.20% 7/1/45 | 2,000,000 | 2,115,180 | |||
| Anoka Health Care Facilities Revenue | |||||
| (Homestead Anoka Project) | |||||
| Series A 7.00% 11/1/40 | 1,000,000 | 1,057,150 | |||
| Series A 7.00% 11/1/46 | 1,220,000 | 1,286,783 | |||
| Anoka Housing Facilities Revenue | |||||
| (Senior Homestead Anoka Project) | |||||
| Series B 6.875% 11/1/34 | 2,015,000 | 2,135,416 | |||
2 NQ-301 [5/14] 7/14 (12800)
(Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Healthcare Revenue Bonds (continued) | |||||
| Apple Valley Economic Development Authority | |||||
| Health Care Revenue | |||||
| (Augustana Home St. Paul Project) | |||||
| Series A 6.00% 1/1/40 | 2,700,000 | $ | 2,725,380 | ||
| Breckenridge Catholic Health Initiatives | |||||
| Series A 5.00% 5/1/30 | 2,500,000 | 2,508,875 | |||
| Deephaven Housing & Healthcare Revenue | |||||
| (St. Therese Senior Living Project) | |||||
| Series A 5.00% 4/1/38 | 730,000 | 707,224 | |||
| Series A 5.00% 4/1/40 | 705,000 | 680,177 | |||
| Series A 5.00% 4/1/48 | 315,000 | 300,393 | |||
| Duluth Economic Development Authority | |||||
| (St. Luke’s Hospital Authority Obligation Group) | |||||
| 5.75% 6/15/32 | 1,850,000 | 1,957,837 | |||
| 6.00% 6/15/39 | 3,570,000 | 3,784,521 | |||
| Fergus Falls Health Care Facilities Revenue | |||||
| (Lake Region Health Care) | |||||
| 5.15% 8/1/35 | 1,250,000 | 1,275,337 | |||
| 5.40% 8/1/40 | 1,000,000 | 1,024,310 | |||
| Glencoe Health Care Facilities Revenue | |||||
| (Glencoe Regional Health Services Project) | |||||
| 4.00% 4/1/24 | 500,000 | 520,295 | |||
| 4.00% 4/1/25 | 660,000 | 684,948 | |||
| 4.00% 4/1/31 | 60,000 | 60,520 | |||
| Hayward Health Care Facilities Revenue | |||||
| (American Baptist Homes Midwest Obligated Group) | |||||
| 5.375% 8/1/34 | 660,000 | 658,132 | |||
| 5.75% 2/1/44 | 500,000 | 500,525 | |||
| Maple Grove Health Care System Revenue | |||||
| (Maple Grove Hospital) | |||||
| 5.25% 5/1/28 | 4,500,000 | 4,677,300 | |||
| 5.25% 5/1/37 | 2,950,000 | 3,031,715 | |||
| Minneapolis Health Care System Revenue | |||||
| (Fairview Health Services) | |||||
| Series A 6.375% 11/15/23 | 180,000 | 212,515 | |||
| Series A 6.625% 11/15/28 | 3,000,000 | 3,579,450 | |||
| Series B 6.50% 11/15/38 (ASSURED GTY) | 1,140,000 | 1,347,013 | |||
| Series D 5.00% 11/15/30 (AMBAC) | 2,500,000 | 2,542,475 | |||
| Series D 5.00% 11/15/34 (AMBAC) | 4,750,000 | 4,819,920 | |||
| (Jones-Harrison Residence Project) 5.60% 10/1/30 | 1,050,000 | 1,050,367 | |||
| Minneapolis National Marrow Donor Program Revenue | |||||
| 4.875% 8/1/25 | 6,430,000 | 6,680,899 | |||
NQ-301 [5/14] 7/14 (12800) 3
Schedule of investments
Delaware Tax-Free Minnesota Fund (Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Healthcare Revenue Bonds (continued) | |||||
| Minneapolis – St. Paul Housing & Redevelopment Authority | |||||
| Health Care Revenue | |||||
| (Children’s Hospital) | |||||
| Series A 5.00% 8/15/30 | 2,750,000 | $ | 2,806,430 | ||
| Series A 5.25% 8/15/35 | 2,085,000 | 2,320,730 | |||
| Minnesota Agricultural & Economic Development Board | |||||
| Revenue | |||||
| (Benedictine Health Systems) 5.75% 2/1/29 | 1,895,000 | 1,895,227 | |||
| (Essentia Remarketing) | |||||
| Series C-1 5.00% 2/15/30 (ASSURED GTY) | 5,725,000 | 6,242,883 | |||
| Series C-1 5.25% 2/15/23 (ASSURED GTY) | 5,000,000 | 5,680,000 | |||
| Series C-1 5.50% 2/15/25 (ASSURED GTY) | 5,120,000 | 5,852,365 | |||
| Un-Refunded Balance | |||||
| Series A 5.75% 11/15/26 (NATL-RE) | 180,000 | 180,292 | |||
| Series A 6.375% 11/15/29 | 15,000 | 15,068 | |||
| Northfield Hospital & Skilled Nursing Revenue | |||||
| 5.375% 11/1/26 | 3,785,000 | 3,902,713 | |||
| Red Wing Senior Housing | |||||
| (Deer Crest Project) | |||||
| Series A 5.00% 11/1/27 | 430,000 | 450,726 | |||
| Series A 5.00% 11/1/32 | 330,000 | 338,884 | |||
| Series A 5.00% 11/1/42 | 1,250,000 | 1,266,237 | |||
| Rochester Health Care & Housing Revenue | |||||
| (Samaritan Bethany) Series A 7.375% 12/1/41 | 5,220,000 | 5,832,567 | |||
| (The Homestead at Rochester Project) Series A | |||||
| 6.875% 12/1/48 | 2,980,000 | 3,236,518 | |||
| Rochester Health Care Facilities Revenue | |||||
| (Mayo Clinic) | |||||
| 4.00% 11/15/41 | 4,690,000 | 4,830,231 | |||
| Series A 4.00% 11/15/30 • | 750,000 | 843,165 | |||
| Series D Remarketing 5.00% 11/15/38 | 6,405,000 | 7,214,080 | |||
| (Olmsted Medical Center Project) | |||||
| 5.00% 7/1/24 | 295,000 | 345,967 | |||
| 5.00% 7/1/33 | 650,000 | 719,973 | |||
| 5.875% 7/1/30 | 1,850,000 | 2,070,095 | |||
| Sartell Health Care Facilities Revenue | |||||
| (Country Manor Campus Project) | |||||
| Series A 5.25% 9/1/27 | 1,280,000 | 1,327,603 | |||
| Series A 5.30% 9/1/37 | 1,200,000 | 1,210,200 | |||
| Series A 6.375% 9/1/42 | 2,435,000 | 2,527,213 | |||
| Sauk Rapids Health Care Housing Facilities Revenue | |||||
| (Good Shepherd Lutheran Home) 5.125% 1/1/39 | 1,350,000 | 1,314,063 | |||
4 NQ-301 [5/14] 7/14 (12800)
(Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Healthcare Revenue Bonds (continued) | |||||
| Shakopee Health Care Facilities Revenue | |||||
| (St. Francis Regional Medical Center) | |||||
| 5.10% 9/1/25 | 2,000,000 | $ | 2,007,680 | ||
| 5.25% 9/1/34 | 7,000,000 | 7,020,790 | |||
| Sherburne County Health Care Facilities Revenue | |||||
| (Guardian Angels Health Services) 5.55% 10/1/36 | 1,500,000 | 1,503,480 | |||
| St. Cloud Health Care Revenue | |||||
| (Centracare Health System Project) | |||||
| 5.375% 5/1/31 (ASSURED GTY) | 1,000,000 | 1,106,160 | |||
| 5.50% 5/1/39 (ASSURED GTY) | 6,000,000 | 6,581,880 | |||
| Series A 5.00% 5/1/25 | 1,035,000 | 1,069,797 | |||
| Series A 5.125% 5/1/30 | 9,350,000 | 10,460,406 | |||
| St. Louis Park Health Care Facilities Revenue | |||||
| (Park Nicollet Health Services) | |||||
| 5.75% 7/1/39 | 16,975,000 | 18,459,464 | |||
| Series C 5.50% 7/1/23 | 3,000,000 | 3,294,240 | |||
| Series C 5.625% 7/1/26 | 1,925,000 | 2,106,662 | |||
| Series C 5.75% 7/1/30 | 5,035,000 | 5,460,659 | |||
| St. Paul Housing & Redevelopment Authority Health Care | |||||
| Facilities Revenue | |||||
| (Allina Health System) | |||||
| Series A 5.00% 11/15/18 (NATL-RE) | 5,720,000 | 6,501,066 | |||
| Series A-1 5.25% 11/15/29 | 5,605,000 | 6,358,985 | |||
| (Health Partners Obligation Group Project) 5.25% | |||||
| 5/15/36 | 7,900,000 | 8,175,710 | |||
| St. Paul Housing & Redevelopment Authority Hospital | |||||
| Revenue | |||||
| (Health East Project) | |||||
| 6.00% 11/15/30 | 4,000,000 | 4,112,720 | |||
| 6.00% 11/15/35 | 10,340,000 | 10,615,147 | |||
| St. Paul Housing & Redevelopment Authority Housing & | |||||
| Health Care Facilities Revenue | |||||
| (Senior Carondelet Village Project) | |||||
| Series A 6.00% 8/1/42 | 3,075,000 | 3,236,991 | |||
| (Senior Episcopal Homes Project) 5.125% 5/1/48 | 3,100,000 | 2,996,739 | |||
| St. Paul Housing & Redevelopment Authority Multifamily | |||||
| Housing Revenue | |||||
| (Marian Center Project) | |||||
| Series A 5.30% 11/1/30 | 500,000 | 501,480 | |||
| Series A 5.375% 5/1/43 | 500,000 | 500,495 | |||
| Stillwater Health Care Revenue | |||||
| (Health System Obligation Group) 5.00% 6/1/35 | 1,000,000 | 1,009,340 | |||
NQ-301 [5/14] 7/14 (12800) 5
Schedule of
investments
Delaware Tax-Free
Minnesota Fund (Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Healthcare Revenue Bonds (continued) | |||||
| Washington County Housing & Redevelopment Authority | |||||
| Healthcare & Housing Revenue | |||||
| (Birchwood & Woodbury Projects) | |||||
| Series A 5.625% 6/1/37 | 1,500,000 | $ | 1,506,660 | ||
| Wayzata Senior Housing Revenue | |||||
| (Folkestone Senior Living Community) | |||||
| Series A 5.50% 11/1/32 | 1,050,000 | 1,130,588 | |||
| Series A 5.75% 11/1/39 | 2,365,000 | 2,554,413 | |||
| Series A 6.00% 5/1/47 | 3,685,000 | 4,014,034 | |||
| Winona Health Care Facilities Revenue | |||||
| (Winona Health Obligation) | |||||
| 4.50% 7/1/25 | 850,000 | 887,171 | |||
| 4.65% 7/1/26 | 540,000 | 563,323 | |||
| 231,791,997 | |||||
| Housing Revenue Bonds – 5.59% | |||||
| Minneapolis Multifamily Housing Revenue | |||||
| (Grant Street Apartments Project) | |||||
| Series A 7.25% 11/1/29 | 690,000 | 690,966 | |||
| (Seward Towers Project) 5.00% 5/20/36 (GNMA) | 7,815,000 | 7,919,174 | |||
| (Trinity Apartments) Series A 6.75% 5/1/21 (HUD) | 1,120,000 | 1,121,814 | |||
| Minnesota Housing Finance Agency | |||||
| (Residential Housing) | |||||
| Series D 4.80% 7/1/38 (AMT) • | 1,935,000 | 1,949,048 | |||
| Series I 4.85% 7/1/38 (AMT) | 1,455,000 | 1,472,838 | |||
| Series I 5.15% 7/1/38 (AMT) | 4,455,000 | 4,503,426 | |||
| Series L 5.10% 7/1/38 (AMT) | 8,345,000 | 8,683,306 | |||
| Series M 4.875% 7/1/37 (AMT) | 2,315,000 | 2,336,877 | |||
| Minnesota Housing Finance Agency Homeownership | |||||
| Finance | |||||
| (Non-Agency Mortgage-Backed Securities Program) | |||||
| Series D 4.70% 1/1/31 (GNMA) (FNMA) (FHLMC) | 2,225,000 | 2,406,449 | |||
| Willmar Housing & Redevelopment Authority Multifamily | |||||
| Housing Revenue | |||||
| (Highland Apartments) 5.85% 6/1/19 (HUD) | 450,000 | 450,639 | |||
| 31,534,537 | |||||
| Lease Revenue Bonds – 3.58% | |||||
| Minnesota General Fund Revenue Appropriations | |||||
| Series A 5.00% 6/1/38 | 1,250,000 | 1,415,913 | |||
| Series A 5.00% 6/1/43 | 3,835,000 | 4,280,665 | |||
| Series B 4.00% 3/1/26 | 2,795,000 | 3,059,910 | |||
| Series B 5.00% 3/1/28 | 2,500,000 | 2,907,925 | |||
| Series B 5.00% 3/1/29 | 3,475,000 | 4,013,486 | |||
6 NQ-301 [5/14] 7/14 (12800)
(Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Lease Revenue Bonds (continued) | |||||
| University of Minnesota Special Purpose Revenue | |||||
| (State Supported Biomed Science Research) | |||||
| 5.00% 8/1/35 | 3,960,000 | $ | 4,485,096 | ||
| 20,162,995 | |||||
| Local General Obligation Bonds – 8.12% | |||||
| Anoka County Capital Improvement | |||||
| Series A 5.00% 2/1/22 | 500,000 | 578,140 | |||
| Brainerd Independent School District No. 181 | |||||
| (School Building) Series A 4.00% 2/1/23 | 5,990,000 | 6,657,106 | |||
| Farmington Independent School District No. 192 | |||||
| (School Building) Series B 5.00% 2/1/27 (AGM) | 10,705,000 | 11,014,589 | |||
| Metropolitan Council Waste Water Treatment | |||||
| Series B 5.00% 12/1/21 | 1,200,000 | 1,227,384 | |||
| Series C 5.00% 3/1/28 | 5,000,000 | 5,401,650 | |||
| New Brighton Tax Increment | |||||
| Series A 5.00% 2/1/27 (NATL-RE) | 1,000,000 | 1,095,240 | |||
| Sartell - St. Stephen Independent School District No. 748 | |||||
| Capital Appreciation | |||||
| Series B 6.05% 2/1/15 (NATL-RE) ^ | 1,075,000 | 1,071,356 | |||
| Series B 6.10% 2/1/16 (NATL-RE) ^ | 1,750,000 | 1,729,735 | |||
| South Washington County Independent School | |||||
| District No. 833 | |||||
| (School Building) | |||||
| Series A 4.75% 2/1/25 | 2,500,000 | 2,795,825 | |||
| Series A 4.75% 2/1/26 | 3,600,000 | 4,013,676 | |||
| Series A 4.75% 2/1/27 | 2,300,000 | 2,538,372 | |||
| St. Paul Independent School District No. 625 | |||||
| (School Building) Series B 5.00% 2/1/23 | 1,660,000 | 2,030,097 | |||
| Staples United Hospital District Health Care Facilities | |||||
| (Todd Morrison ETC Hospital-Lakewood) | |||||
| 5.00% 12/1/21 | 2,000,000 | 2,028,080 | |||
| 5.125% 12/1/24 | 1,000,000 | 1,011,750 | |||
| Willmar City | |||||
| (Rice Memorial Hospital Project) Series A 5.00% 2/1/25 | 2,210,000 | 2,554,473 | |||
| 45,747,473 | |||||
| Pre-Refunded / Escrowed to Maturity Bonds – 9.81%§ | |||||
| Dakota-Washington Counties Housing & Redevelopment | |||||
| Authority Single Family Residential Mortgage Revenue | |||||
| 8.15% 9/1/16 (NATL-RE) (IBC) (GNMA) (AMT) | 405,000 | 468,099 | |||
| (Anoka County) 8.45% 9/1/19 (GNMA) (AMT) | 9,000,000 | 11,857,950 | |||
| (Bloomington Single Family Residential Mortgage) | |||||
| Series B 8.375% 9/1/21 (GNMA) (FHA) (VA) (AMT) | 14,115,000 | 19,550,828 | |||
NQ-301 [5/14] 7/14 (12800) 7
Schedule of
investments
Delaware Tax-Free
Minnesota Fund (Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Pre-Refunded / Escrowed to Maturity Bonds§ (continued) | |||||
| Prior Lake-Savage Independent School District No. 719 | |||||
| (School Building) Series B 5.00% 2/1/19-15 (AGM) | 3,145,000 | $ | 3,247,087 | ||
| Southern Minnesota Municipal Power Agency Power | |||||
| Supply Revenue | |||||
| Series A 5.75% 1/1/18 | 2,815,000 | 2,965,715 | |||
| Series A 5.75% 1/1/18 (AMBAC) (TCRS) | 490,000 | 516,235 | |||
| Series A 5.75% 1/1/18 (NATL-RE) (IBC) | 745,000 | 784,887 | |||
| University of Minnesota | |||||
| Series A 5.50% 7/1/21 | 12,500,000 | 15,116,000 | |||
| Western Minnesota Municipal Power Agency | |||||
| Series A 9.75% 1/1/16 (NATL-RE) | 715,000 | 793,085 | |||
| 55,299,886 | |||||
| Special Tax Revenue Bonds – 2.65% | |||||
| Hennepin County Sales Tax Revenue | |||||
| (Second Lien-Ballpark Project) | |||||
| Series B 5.00% 12/15/19 | 2,100,000 | 2,397,297 | |||
| Series B 5.00% 12/15/20 | 1,000,000 | 1,140,070 | |||
| Series B 5.00% 12/15/24 | 1,150,000 | 1,307,009 | |||
| Minneapolis Development Revenue | |||||
| (Limited Tax Supported Common Bond Fund) | |||||
| Series 2-A 6.00% 12/1/40 | 3,000,000 | 3,405,750 | |||
| Minneapolis Tax Increment Revenue | |||||
| (St. Anthony Falls Project) 5.75% 2/1/27 | 1,000,000 | 1,000,430 | |||
| Minnesota 911 Revenue | |||||
| (Public Safety Radio Communication System Project) | |||||
| 5.00% 6/1/24 | 2,925,000 | 3,392,561 | |||
| 5.00% 6/1/25 | 2,000,000 | 2,311,360 | |||
| 14,954,477 | |||||
| State General Obligation Bonds – 4.10% | |||||
| Minnesota | |||||
| Series A 5.00% 10/1/24 | 4,625,000 | 5,558,510 | |||
| Series A 5.00% 10/1/27 | 5,280,000 | 6,276,758 | |||
| (State Trunk Highway) Series B 5.00% 10/1/29 | 5,000,000 | 5,880,200 | |||
| (Various Purposes) | |||||
| Series A 4.00% 8/1/27 | 1,000,000 | 1,097,460 | |||
| Series F 5.00% 10/1/22 | 3,500,000 | 4,314,520 | |||
| 23,127,448 | |||||
| Transportation Revenue Bonds – 3.34% | |||||
| Minneapolis-St. Paul Metropolitan Airports Commission | |||||
| Revenue | |||||
| Senior Series A 5.00% 1/1/28 | 1,250,000 | 1,378,687 | |||
| Series B 5.00% 1/1/31 | 1,750,000 | 1,945,073 | |||
8 NQ-301 [5/14] 7/14 (12800)
(Unaudited)
| Principal amount° | Value (U.S. $) | ||||
| Municipal Bonds (continued) | |||||
| Transportation Revenue Bonds (continued) | |||||
| Minneapolis-St. Paul Metropolitan Airports Commission | |||||
| Revenue | |||||
| Subordinate | |||||
| Series B 5.00% 1/1/26 | 575,000 | $ | 657,737 | ||
| Series B 5.00% 1/1/27 | 1,160,000 | 1,318,444 | |||
| Series B 5.00% 1/1/28 | 2,750,000 | 3,099,745 | |||
| Series B 5.00% 1/1/29 | 120,000 | 134,573 | |||
| Series B 5.00% 1/1/30 | 1,675,000 | 1,870,037 | |||
| St. Paul Housing & Redevelopment Authority Parking | |||||
| Revenue | |||||
| (Parking Facilities Project) | |||||
| Series A 5.00% 8/1/30 | 1,870,000 | 2,092,511 | |||
| Series A 5.00% 8/1/35 | 1,145,000 | 1,215,418 | |||
| (Smith Avenue Project) Series B 5.00% 8/1/35 | 1,500,000 | 1,646,430 | |||
| St. Paul Port Authority Revenue | |||||
| (Amherst H Wilder Foundation) Series 3 5.00% 12/1/36 | 3,200,000 | 3,452,864 | |||
| 18,811,519 | |||||
| Water & Sewer Revenue Bonds – 3.08% | |||||
| Metropolitan Council Waste Water Treatment Revenue | |||||
| Series B 4.00% 9/1/27 | 2,400,000 | 2,605,584 | |||
| Series B 5.00% 9/1/22 | 2,125,000 | 2,626,203 | |||
| Series B 5.00% 9/1/25 | 3,245,000 | 3,895,071 | |||
| Series E 5.00% 9/1/22 | 2,745,000 | 3,392,436 | |||
| Series E 5.00% 9/1/23 | 2,000,000 | 2,431,380 | |||
| Series E 5.00% 9/1/24 | 2,000,000 | 2,415,120 | |||
| 17,365,794 | |||||
| Total Municipal Bonds (cost $518,992,465) | 554,175,209 | ||||
| Short-Term Investment – 0.59% | |||||
| Variable Rate Demand Note – 0.59%¤ | |||||
| Minneapolis-St. Paul Housing & Redevelopment Authority | |||||
| Health Care Revenue (Allina Health System) Series B-1 | |||||
| 0.03% 11/15/35 (LOC-JPMorgan Chase Bank N.A.) | 3,345,000 | 3,345,000 | |||
| Total Short-Term Investment (cost $3,345,000) | 3,345,000 | ||||
NQ-301 [5/14] 7/14 (12800) 9
Schedule of
investments
Delaware Tax-Free
Minnesota Fund (Unaudited)
| Total Value of Securities – 98.88% | ||
| (cost $522,337,465) | 557,520,209 | |
| Receivables and Other Assets Net of Liabilities – 1.12% | 6,332,463 | |
| Net Assets – 100.00% | $ | 563,852,672 |
| ¤ | 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. The rate shown is the rate as of May 31, 2014. |
| ° | Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency. |
| • | Variable rate security. The rate shown is the rate as of May 31, 2014. Interest rates reset periodically. |
| ^ | Zero coupon security. The rate shown is the yield at the time of purchase. |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 3 in “Notes.” |
Summary of
abbreviations:
AGM – Insured by Assured
Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance
Corporation
AMT – Subject to Alternative Minimum Tax
ASSURED GTY – Insured
by Assured Guaranty Corporation
FHA – Federal Housing Administration
FHLMC
– Federal Home Loan Mortgage Corporation Collateral
FNMA – Federal National
Mortgage Association Collateral
GNMA – Government National Mortgage
Association Collateral
HUD – Housing and Urban Development Section 8
IBC –
Insured Bond Certificate
LOC – Letter of Credit
NATL-RE – Insured by
National Public Finance Guarantee Corporation
TCRS – Temporary Custodial
Receipts
10 NQ-301 [5/14] 7/14 (12800)
| Notes | |
| Delaware Tax-Free Minnesota Fund | May 31, 2014 (Unaudited) |
1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by Voyageur Tax-Free Funds – Delaware Tax-Free Minnesota Fund (Fund). This report covers the period of time since the Fund’s last fiscal year end.
Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.
Federal Income Taxes — No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the 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 the Fund’s tax positions taken for all open federal income tax years (Aug. 31, 2010–Aug. 31, 2013), and has concluded that no provision for federal income tax is required in the Fund’s financial statements.
Class Accounting — Investment income and common expenses are allocated to the various classes of the Fund on the basis of “settled shares” of each class in relation to the net assets of the Fund. Realized and unrealized gains (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates — The preparation of financial statements in conformity with U.S. 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 the Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Investments® Family of Funds are generally allocated among such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are amortized to interest income over the lives of the respective securities using the effective interest method. The 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. The Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
NQ-301 [5/14] 7/14 (12800) 11
(Unaudited)
2. Investments
At May 31, 2014, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At May 31, 2014, the cost of investments and unrealized appreciation (depreciation) for the Fund were as follows:
| Cost of investments | $ | 522,337,465 | ||
| Aggregate unrealized appreciation | $ | 36,656,284 | ||
| Aggregate unrealized depreciation | (1,473,540 | ) | ||
| Net unrealized appreciation | $ | 35,182,744 |
U.S. GAAP defines fair value as the price that the 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 developed based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
| Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded options contracts) |
| Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities) |
| Level 3 – | Significant unobservable inputs (including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. The 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.
12 NQ-301 [5/14] 7/14 (12800)
(Unaudited)
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of May 31, 2014:
| Level 2 | ||
| Municipal Bonds | $ | 554,175,209 |
| Short-Term Investments | 3,345,000 | |
| Total | $ | 557,520,209 |
During the period ended May 31, 2014, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Fund. The Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to net assets. At May 31, 2014, there were no Level 3 investments.
3. Geographic, Credit, and Market Risks
The Fund concentrates its investments in securities issued by municipalities, mainly in Minnesota, and may be subject to geographic concentration risk. In addition, the Fund has the flexibility to invest in issuers in U.S. territories such as Puerto Rico, the U.S. Virgin Islands, and Guam, whose bonds are also free of federal and individual state income taxes.
The value of the Fund’s investments may be adversely affected by new legislation within the state or, U.S. 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 the Fund. At May 31, 2014, 11.59% of the Fund’s net assets were insured by bond insurers. These securities have been identified in the schedule of investments.
The 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) and lower than Baa3 by Moody’s Investors Service Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.
The 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. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
NQ-301 [5/14] 7/14 (12800) 13
(Unaudited)
The Fund may invest in advanced refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high-grade interest bearing debt securities which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
The Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Fund’s Board has delegated to Delaware Management Company, a series of Delaware Management Business Trust, the day-to-day functions of determining whether individual securities are liquid for purposes of the 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 the Fund’s 15% limit on investments in illiquid securities. As of May 31, 2014, there were no Rule 144A securities held by the Fund and no securities have been determined to be illiquid under the Fund’s Liquidity Procedures.
4. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to May 31, 2014 that would require recognition or disclosure in the Fund’s schedule of investments.
14 NQ-301 [5/14] 7/14 (12800)
Item 2. Controls and Procedures.
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below:
CERTIFICATION
I, Patrick P. Coyne, certify that:
| 1. | I have reviewed this report on Form N-Q of Voyageur Tax Free Funds; | |||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||
| 3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |||
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: | |||
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |||
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and | |||
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||
| /s/ PATRICK P. COYNE | |
| By: | Patrick P. Coyne |
| Title: | Chief Executive Officer |
| Date: | July 29, 2014 |
CERTIFICATION
I, Richard Salus, certify that:
| 1. | I have reviewed this report on Form N-Q of Voyageur Tax Free Funds; | |||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||
| 3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |||
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: | |||
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |||
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and | |||
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||
| /s/ RICHARD SALUS | |
| By: | Richard Salus |
| Title: | Chief Financial Officer |
| Date: | July 29, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VOYAGEUR TAX FREE FUNDS
| /s/ PATRICK P. COYNE | |
| By: | Patrick P. Coyne |
| Title: | Chief Executive Officer |
| Date: | July 29, 2014 |
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/ PATRICK P. COYNE | |
| By: | Patrick P. Coyne |
| Title: | Chief Executive Officer |
| Date: | July 29, 2014 |
| /s/ RICHARD SALUS | |
| By: | Richard Salus |
| Title: | Chief Financial Officer |
| Date: | July 29, 2014 |