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: | 811-03910 | |
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 | ||
Registrants telephone number, including area code: | (800) 523-1918 | |
Date of fiscal year end: | August 31 | |
Date of reporting period: | August 31, 2019 |
Item 1. Reports to Stockholders
|
Experience Delaware Funds® by Macquarie
Macquarie Investment Management (MIM) is a global asset manager with offices throughout the United States, Europe, Asia, and Australia. As active managers we prioritize autonomy and accountability at the investment team level in pursuit of opportunities that matter for clients. Delaware Funds is one of the longest-standing mutual fund families, with more than 80 years in existence.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Portfolio management review | ||||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
September 10, 2019 |
Performance preview (for the year ended August 31, 2019) | ||||
| ||||
Delaware Tax-Free Minnesota Fund (Institutional Class shares) | 1-year return | +7.81% | ||
| ||||
Delaware Tax-Free Minnesota Fund (Class A shares) | 1-year return | +7.54% | ||
| ||||
Bloomberg Barclays Municipal Bond Index (benchmark) | 1-year return | +8.72% | ||
| ||||
Lipper Minnesota Municipal Debt Funds Average | 1-year return | +7.55% | ||
|
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Minnesota 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. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Minnesota Municipal Debt Funds Average compares funds that invest primarily in municipal debt issues that are exempt from taxation in Minnesota.
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 Minnesota Intermediate Fund (Institutional Class shares) | 1-year return | +7.06% | ||
| ||||
Delaware Tax-Free Minnesota Intermediate Fund (Class A shares) | 1-year return | +7.00% | ||
| ||||
Bloomberg Barclays 315 Year Blend Municipal Bond Index (benchmark) | 1-year return | +8.16% | ||
| ||||
Lipper Other States Intermediate Municipal Debt Funds Average | 1-year return | +7.10% | ||
|
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Minnesota Intermediate Fund, please see the table on page 10. 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. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Other States Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years and are exempt from taxation on a specified city or state basis.
Please see page 13 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 Minnesota High-Yield Municipal Bond Fund (Institutional Class shares) | 1-year return | +8.50% | ||
| ||||
Delaware Minnesota High-Yield Municipal Bond Fund (Class A shares) | 1-year return | +8.33% | ||
| ||||
Bloomberg Barclays Municipal Bond Index (benchmark) | 1-year return | +8.72% | ||
| ||||
Lipper Minnesota Municipal Debt Funds Average | 1-year return | +7.55% | ||
|
Past performance does not guarantee future results.
For complete, annualized performance for Delaware Minnesota High-Yield Municipal Bond Fund, please see the table on page 14. 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. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
The Lipper Minnesota Municipal Debt Funds Average compares funds that invest primarily in municipal debt issues that are exempt from taxation in Minnesota.
Please see page 17 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.
1
Portfolio management review
Delaware Funds® by Macquarie Minnesota municipal bond funds
2
3
Portfolio management review
Delaware Funds® by Macquarie Minnesota municipal bond funds
4
5
Performance summaries | ||
Delaware Tax-Free Minnesota Fund | August 31, 2019 |
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, 2019
|
| |||||||||||||
1 year
|
5 years
|
10 years
|
Lifetime
|
|||||||||||||
Class A (Est. Feb. 27, 1984) |
||||||||||||||||
Excluding sales charge |
+7.54% | +3.33% | +4.22% | +6.19% | ||||||||||||
Including sales charge |
+2.72% | +2.37% | +3.75% | +6.05% | ||||||||||||
Class C (Est. May 4, 1994) |
||||||||||||||||
Excluding sales charge |
+6.73% | +2.56% | +3.44% | +4.07% | ||||||||||||
Including sales charge |
+5.73% | +2.56% | +3.44% | +4.07% | ||||||||||||
Institutional Class (Est. Dec. 31, 2013) |
||||||||||||||||
Excluding sales charge |
+7.81% | +3.60% | n/a | +4.54% | ||||||||||||
Including sales charge |
+7.81% | +3.60% | n/a | +4.54% | ||||||||||||
Bloomberg Barclays Municipal Bond Index |
+8.72% | +3.85% | +4.62% | +4.71%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Funds Institutional Class inception date.
6
2 The Funds expense ratios, as described in the most recent prospectus, are disclosed in the following Fund expense ratios table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and 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) from exceeding 0.60% of the Funds average daily net assets during the period from Sept. 1, 2018 to Aug. 31, 2019.** 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 |
0.94% | 1.69% | 0.69% | |||
(without fee waivers) |
||||||
Net expenses |
0.85% | 1.60% | 0.60% | |||
(including fee waivers, if any) |
||||||
Type of waiver |
Contractual
|
Contractual
|
Contractual
|
**The aggregate contractual waiver period covering this report is from Dec. 29, 2017 through Dec. 28, 2019.
7
Performance summaries
Delaware Tax-Free Minnesota Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from Aug. 31, 2009 through Aug. 31, 2019
Institutional Class shares
Average annual total returns from Dec. 31, 2013 (inception date) through Aug. 31, 2019
8
Nasdaq symbols | CUSIPs | |||||||||||||
Class A |
DEFFX | 928918101 | ||||||||||||
Class C |
DMOCX | 928918408 | ||||||||||||
Institutional Class |
DMNIX | 928918705 |
9
Performance summaries | ||
Delaware Tax-Free Minnesota Intermediate Fund | August 31, 2019 |
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, 2019
|
| |||||||||||||
1 year
|
5 years
|
10 years
|
Lifetime
|
|||||||||||||
Class A (Est. Oct. 27, 1985) |
||||||||||||||||
Excluding sales charge |
+7.00% | +2.89% | +3.55% | +4.73% | ||||||||||||
Including sales charge |
+4.02% | +2.32% | +3.26% | +4.64% | ||||||||||||
Class C (Est. May 4, 1994) |
||||||||||||||||
Excluding sales charge |
+6.09% | +2.00% | +2.68% | +3.31% | ||||||||||||
Including sales charge |
+5.09% | +2.00% | +2.68% | +3.31% | ||||||||||||
Institutional Class (Est. Dec. 31, 2013) |
||||||||||||||||
Excluding sales charge |
+7.06% | +3.02% | n/a | +3.70% | ||||||||||||
Including sales charge |
+7.06% | +3.02% | n/a | +3.70% | ||||||||||||
Bloomberg Barclays 315 Year Blend Municipal Bond Index | +8.16% | +3.42% | +4.15% | +4.06%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Funds Institutional Class inception date
10
2 The Funds expense ratios, as described in the most recent prospectus, are disclosed in the following Fund expense ratios table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and 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) from exceeding 0.56% of the Funds average daily net assets during the period from Sept. 1, 2018 to Aug. 31, 2019.*** 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 |
1.00% | 1.75% | 0.75% | |||
(without fee waivers) |
||||||
Net expenses |
0.71% | 1.56% | 0.56% | |||
(including fee waivers, if any) |
||||||
Type of waiver |
Contractual
|
Contractual
|
Contractual
|
**The aggregate contractual waiver period covering this report is from Dec. 29, 2017 through Dec. 28, 2019.
*** The aggregate contractual waiver period covering this report is from April 1, 2018 through Dec. 28, 2019.
11
Performance summaries
Delaware Tax-Free Minnesota Intermediate Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from Aug. 31, 2009 through Aug. 31, 2019
Institutional Class shares
Average annual total returns from Dec. 31, 2013 (inception date) through Aug. 31, 2019
12
Nasdaq symbols | CUSIPs | |||||||||||||
Class A |
DXCCX | 928930106 | ||||||||||||
Class C |
DVSCX | 928930205 | ||||||||||||
Institutional Class |
DMIIX | 92910U109 |
13
Performance summaries | ||
Delaware Minnesota High-Yield Municipal Bond Fund | August 31, 2019 |
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, 2019
|
| |||||||||||||
1 year
|
5 years
|
10 years
|
Lifetime
|
|||||||||||||
Class A (Est. June 4, 1996) |
||||||||||||||||
Excluding sales charge |
+8.33% | +3.84% | +4.89% | +5.10% | ||||||||||||
Including sales charge |
+3.48% | +2.90% | +4.40% | +4.89% | ||||||||||||
Class C (Est. June 7, 1996) |
||||||||||||||||
Excluding sales charge |
+7.51% | +3.07% | +4.10% | +4.32% | ||||||||||||
Including sales charge |
+6.51% | +3.07% | +4.10% | +4.32% | ||||||||||||
Institutional Class (Est. Dec. 31, 2013) |
||||||||||||||||
Excluding sales charge |
+8.50% | +4.09% | n/a | +5.05% | ||||||||||||
Including sales charge |
+8.50% | +4.09% | n/a | +5.05% | ||||||||||||
Bloomberg Barclays Municipal Bond Index | +8.72% | +3.85% | +4.62% | +4.71%* |
*The benchmark lifetime return is for Institutional Class share comparison only and is calculated using the last business day in the month of the Funds Institutional Class inception date
14
2 The Funds expense ratios, as described in the most recent prospectus, are disclosed in the following Fund expense ratios table. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total annual fund operating expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, short sale and 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) from exceeding 0.64% of the Funds average daily net assets during the period from Sept. 1, 2018 to Aug. 31, 2019.** 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 |
0.99% | 1.74% | 0.74% | |||
(without fee waivers) |
||||||
Net expenses |
0.89% | 1.64% | 0.64% | |||
(including fee waivers, if any) |
||||||
Type of waiver |
Contractual
|
Contractual
|
Contractual
|
**The aggregate contractual waiver period covering this report is from Dec. 29, 2017 through Dec. 28, 2019.
15
Performance summaries
Delaware Minnesota High-Yield Municipal Bond Fund
Performance of a $10,000 investment1
Class A shares
Average annual total returns from Aug. 31, 2009 through Aug. 31, 2019
Institutional Class shares
Average annual total returns from Dec. 31, 2013 (inception date) through Aug. 31, 2019
16
Nasdaq symbols | CUSIPs | |||||||||||||
Class A |
DVMHX | 928928316 | ||||||||||||
Class C |
DVMMX | 928928282 | ||||||||||||
Institutional Class |
DMHIX | 928928175 |
17
For the six-month period from March 1, 2019 to August 31, 2019 (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. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from March 1, 2019 to Aug. 31, 2019.
Actual expenses
The first section of the tables shown, Actual Fund return, provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second section of the tables shown, Hypothetical 5% return, provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
18
Delaware Tax-Free Minnesota Fund
Expense analysis of an investment of $1,000
Beginning
Account Value
3/1/19 |
Ending
Account Value
8/31/19 |
Annualized
Expense Ratio |
Expenses
Paid During Period
3/1/19 to 8/31/19* |
|||||||||||||
Actual Fund return |
||||||||||||||||
Class A |
$1,000.00 | $1,058.60 | 0.85% | $4.41 | ||||||||||||
Class C |
1,000.00 | 1,054.50 | 1.60% | 8.29 | ||||||||||||
Institutional Class |
1,000.00 | 1,060.80 | 0.60% | 3.12 | ||||||||||||
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 |
Delaware Tax-Free Minnesota Intermediate Fund
Expense analysis of an investment of $1,000
Beginning
Account Value
3/1/19 |
Ending
Account Value
8/31/19 |
Annualized
Expense Ratio |
Expenses
Paid During Period
3/1/19 to 8/31/19* |
|||||||||||||
Actual Fund return |
||||||||||||||||
Class A |
$1,000.00 | $1,051.50 | 0.71% | $3.67 | ||||||||||||
Class C |
1,000.00 | 1,047.00 | 1.56% | 8.05 | ||||||||||||
Institutional Class |
1,000.00 | 1,052.30 | 0.56% | 2.90 | ||||||||||||
Hypothetical 5% return (5% return before expenses) |
|
|||||||||||||||
Class A |
$1,000.00 | $1,021.63 | 0.71% | $3.62 | ||||||||||||
Class C |
1,000.00 | 1,017.34 | 1.56% | 7.93 | ||||||||||||
Institutional Class |
1,000.00 | 1,022.38 | 0.56% | 2.85 |
19
Disclosure of Fund expenses
For the six-month period from March 1, 2019 to August 31, 2019 (Unaudited)
Delaware Minnesota High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
Beginning
Account Value
3/1/19 |
Ending
Account Value
8/31/19 |
Annualized
Expense Ratio |
Expenses
Paid During Period
3/1/19 to 8/31/19* |
|||||||||||||
Actual Fund return |
||||||||||||||||
Class A |
$1,000.00 | $1,066.00 | 0.89% | $4.63 | ||||||||||||
Class C |
1,000.00 | 1,061.90 | 1.64% | 8.52 | ||||||||||||
Institutional Class |
1,000.00 | 1,067.30 | 0.64% | 3.33 | ||||||||||||
Hypothetical 5% return (5% return before expenses) |
| |||||||||||||||
Class A |
$1,000.00 | $1,020.72 | 0.89% | $4.53 | ||||||||||||
Class C |
1,000.00 | 1,016.94 | 1.64% | 8.34 | ||||||||||||
Institutional Class |
1,000.00 | 1,021.98 | 0.64% | 3.26 |
*Expenses Paid During Period are equal to the relevant Funds 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.
20
Security type / sector / state / territory allocations
Delaware Tax-Free Minnesota Fund | As of August 31, 2019 (Unaudited) |
Sector designations may be different than the sector designations presented in other fund materials.
Security type / sector
|
Percentage of net assets
|
|||||||
Municipal Bonds* |
103.05% | |||||||
Corporate Revenue Bond |
0.62% | |||||||
Education Revenue Bonds |
18.51% | |||||||
Electric Revenue Bonds |
9.51% | |||||||
Healthcare Revenue Bonds |
27.75% | |||||||
Housing Revenue Bonds |
0.41% | |||||||
Lease Revenue Bonds |
2.79% | |||||||
Local General Obligation Bonds |
9.79% | |||||||
Pre-Refunded/Escrowed to Maturity Bonds |
7.78% | |||||||
Special Tax Revenue Bonds |
3.03% | |||||||
State General Obligation Bonds |
12.44% | |||||||
Transportation Revenue Bonds |
7.35% | |||||||
Water & Sewer Revenue Bonds
|
|
3.07%
|
|
|||||
Short-Term Investments |
1.53% | |||||||
Total Value of Securities |
104.58% | |||||||
Liabilities Net of Receivables and Other Assets |
(4.58%) | |||||||
Total Net Assets |
100.00% |
* As of the date of this report, Delaware Tax-Free Minnesota Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory
|
Percentage of net assets
|
|||||||
Guam |
0.38% | |||||||
Minnesota |
101.78% | |||||||
Puerto Rico |
2.06% | |||||||
US Virgin Islands
|
|
0.36%
|
|
|||||
Total Value of Securities |
104.58% |
21
Security type / sector / state / territory allocations
Delaware Tax-Free Minnesota Intermediate Fund | As of August 31, 2019 (Unaudited) |
Sector designations may be different than the sector designations presented in other fund materials.
Security type / sector
|
Percentage of net assets
|
|||||||
Municipal Bonds* |
|
97.85% |
|
|||||
Corporate Revenue Bond |
0.32% | |||||||
Education Revenue Bonds |
15.20% | |||||||
Electric Revenue Bonds |
10.09% | |||||||
Healthcare Revenue Bonds |
31.14% | |||||||
Housing Revenue Bond |
0.38% | |||||||
Lease Revenue Bonds |
5.19% | |||||||
Local General Obligation Bonds |
7.39% | |||||||
Pre-Refunded/Escrowed to Maturity Bonds |
7.08% | |||||||
Special Tax Revenue Bonds |
2.26% | |||||||
State General Obligation Bonds |
9.08% | |||||||
Transportation Revenue Bonds |
8.04% | |||||||
Water & Sewer Revenue Bonds
|
|
1.68%
|
|
|||||
Short-Term Investments |
2.16% | |||||||
Total Value of Securities |
100.01% | |||||||
Liabilities Net of Receivables and Other Assets |
(0.01%) | |||||||
Total Net Assets |
100.00% |
* As of the date of this report, Delaware Tax-Free Minnesota Intermediate Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory
|
Percentage of net assets
|
|||||||
Minnesota |
|
98.48% |
|
|||||
Puerto Rico
|
|
1.53%
|
|
|||||
Total Value of Securities |
100.01% |
22
Security type / sector / state / territory allocations
Delaware Minnesota High-Yield Municipal Bond Fund |
As of August 31, 2019 (Unaudited) |
Sector designations may be different than the sector designations presented in other fund materials.
Security type / sector
|
Percentage of net assets
|
|||||||
Municipal Bonds* |
|
98.96% |
|
|||||
Corporate Revenue Bond |
0.98% | |||||||
Education Revenue Bonds |
19.80% | |||||||
Electric Revenue Bonds |
7.78% | |||||||
Healthcare Revenue Bonds |
33.97% | |||||||
Housing Revenue Bonds |
1.81% | |||||||
Lease Revenue Bonds |
2.39% | |||||||
Local General Obligation Bonds |
7.50% | |||||||
Pre-Refunded/Escrowed to Maturity Bonds |
5.38% | |||||||
Special Tax Revenue Bonds |
5.02% | |||||||
State General Obligation Bonds |
8.43% | |||||||
Transportation Revenue Bonds |
4.40% | |||||||
Water & Sewer Revenue Bonds
|
|
1.50%
|
|
|||||
Short-Term Investments |
|
1.59% |
|
|||||
Total Value of Securities |
100.55% | |||||||
Liabilities Net of Receivables and Other Assets |
(0.55%) | |||||||
Total Net Assets |
100.00% |
* As of the date of this report, Delaware Minnesota High-Yield Municipal Bond Fund held bonds issued by or on behalf of territories and the states of the US as follows:
State / territory
|
Percentage of net assets
|
|||||||
Guam |
|
0.34% |
|
|||||
Minnesota |
96.22% | |||||||
Puerto Rico |
3.99% | |||||||
Total Value of Securities |
100.55% |
23
Delaware Tax-Free Minnesota Fund | August 31, 2019 |
Principal amount° | Value (US $) | |||||||
Municipal Bonds 103.05% |
||||||||
Corporate Revenue Bond 0.62% |
||||||||
St. Paul Port Authority Solid Waste Disposal Revenue |
||||||||
(Gerdau St. Paul Steel Mill Project) |
||||||||
Series 7 144A 4.50% 10/1/37 (AMT)# |
3,565,000 | $ | 3,621,149 | |||||
|
|
|||||||
3,621,149 | ||||||||
|
|
|||||||
Education Revenue Bonds 18.51% |
||||||||
Bethel Charter School Lease Revenue |
||||||||
(Spectrum High School Project) |
||||||||
Series A 4.00% 7/1/32 |
840,000 | 906,175 | ||||||
Series A 4.25% 7/1/47 |
1,550,000 | 1,652,021 | ||||||
Series A 4.375% 7/1/52 |
400,000 | 428,412 | ||||||
Brooklyn Park Charter School Lease Revenue |
||||||||
(Prairie Seeds Academy Project) |
||||||||
Series A 5.00% 3/1/34 |
2,260,000 | 2,348,976 | ||||||
Series A 5.00% 3/1/39 |
385,000 | 395,969 | ||||||
Cologne Charter School Lease Revenue |
||||||||
(Cologne Academy Project) |
||||||||
Series A 5.00% 7/1/34 |
250,000 | 268,457 | ||||||
Series A 5.00% 7/1/45 |
1,390,000 | 1,470,995 | ||||||
Deephaven Charter School Lease Revenue |
||||||||
(Eagle Ridge Academy Project) Series A 5.50% 7/1/50 |
2,000,000 | 2,199,960 | ||||||
Duluth Housing & Redevelopment Authority Revenue |
||||||||
(Duluth Public Schools Academy Project) |
||||||||
Series A 5.00% 11/1/38 |
700,000 | 778,281 | ||||||
Series A 5.00% 11/1/48 |
2,800,000 | 3,075,604 | ||||||
Duluth Independent School District No. 709 Certificates of Participation |
||||||||
Series B 5.00% 2/1/28 |
350,000 | 441,529 | ||||||
Forest Lake Charter School Lease Revenue Fund |
||||||||
(Lakes International Language Academy Project) |
||||||||
Series A 5.25% 8/1/43 |
400,000 | 445,808 | ||||||
Series A 5.375% 8/1/50 |
1,690,000 | 1,889,217 | ||||||
Series A 5.50% 8/1/36 |
580,000 | 625,808 | ||||||
Series A 5.75% 8/1/44 |
1,190,000 | 1,283,177 | ||||||
Ham Lake Charter School Lease Revenue |
||||||||
(Davinci Academy Project) |
||||||||
Series A 5.00% 7/1/36 |
765,000 | 819,950 | ||||||
Series A 5.00% 7/1/47 |
2,290,000 | 2,426,873 | ||||||
Hugo Charter School Lease Revenue |
||||||||
(Noble Academy Project) |
||||||||
Series A 5.00% 7/1/34 |
580,000 | 619,620 | ||||||
Series A 5.00% 7/1/44 |
1,770,000 | 1,869,934 |
24
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Education Revenue Bonds (continued) |
||||||||
Minneapolis Charter School Lease Revenue |
||||||||
(Hiawatha Academies Project) |
||||||||
Series A 5.00% 7/1/31 |
885,000 | $ | 970,845 | |||||
Series A 5.00% 7/1/47 |
2,300,000 | 2,469,441 | ||||||
Minneapolis Student Housing Revenue (Riverton Community Housing Project) |
||||||||
5.25% 8/1/39 |
470,000 | 506,345 | ||||||
5.50% 8/1/49 |
2,260,000 | 2,449,433 | ||||||
Minnesota Colleges & Universities Revenue Fund Series A 5.00% 10/1/26 |
4,990,000 | 6,271,681 | ||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(Bethel University) |
||||||||
5.00% 5/1/32 |
1,375,000 | 1,639,124 | ||||||
5.00% 5/1/37 |
1,250,000 | 1,469,563 | ||||||
5.00% 5/1/47 |
250,000 | 289,045 | ||||||
(Carleton College) |
||||||||
4.00% 3/1/35 |
1,000,000 | 1,146,610 | ||||||
4.00% 3/1/36 |
415,000 | 474,648 | ||||||
5.00% 3/1/44 |
2,085,000 | 2,534,463 | ||||||
(College of St. Benedict) Series 8-K 4.00% 3/1/43 |
1,000,000 | 1,067,150 | ||||||
(College of St. Scholastica) |
||||||||
4.00% 12/1/29 |
280,000 | 330,663 | ||||||
4.00% 12/1/30 |
290,000 | 339,425 | ||||||
4.00% 12/1/33 |
500,000 | 571,820 | ||||||
4.00% 12/1/34 |
500,000 | 569,220 | ||||||
4.00% 12/1/40 |
1,200,000 | 1,347,072 | ||||||
(Gustavus Adolphus College) 5.00% 10/1/47 |
5,600,000 | 6,625,696 | ||||||
(St. Catherine University) |
||||||||
Series A 4.00% 10/1/36 |
925,000 | 1,017,111 | ||||||
Series A 5.00% 10/1/35 |
875,000 | 1,058,339 | ||||||
Series A 5.00% 10/1/45 |
2,120,000 | 2,512,645 | ||||||
(St. Johns University) |
||||||||
Series 8-I 5.00% 10/1/32 |
500,000 | 592,970 | ||||||
Series 8-I 5.00% 10/1/33 |
250,000 | 295,825 | ||||||
(St. Olaf College) |
||||||||
Series 8-G 5.00% 12/1/31 |
670,000 | 804,824 | ||||||
Series 8-G 5.00% 12/1/32 |
670,000 | 803,719 | ||||||
Series 8-N 4.00% 10/1/35 |
500,000 | 568,315 | ||||||
(St. Scholastica College) Series 7-J 6.30% 12/1/40 |
1,800,000 | 1,822,446 | ||||||
(Trustees of The Hamline University) |
||||||||
Series B 5.00% 10/1/37 |
955,000 | 1,101,841 |
25
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Education Revenue Bonds (continued) |
||||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(Trustees of The Hamline University) |
||||||||
Series B 5.00% 10/1/38 |
1,000,000 | $ | 1,150,760 | |||||
Series B 5.00% 10/1/39 |
170,000 | 195,362 | ||||||
Series B 5.00% 10/1/40 |
625,000 | 716,881 | ||||||
Series B 5.00% 10/1/47 |
1,060,000 | 1,207,064 | ||||||
(University of St. Thomas) |
||||||||
4.00% 10/1/36 |
700,000 | 822,815 | ||||||
4.00% 10/1/37 |
750,000 | 878,347 | ||||||
4.00% 10/1/44 |
1,255,000 | 1,439,949 | ||||||
5.00% 10/1/40 |
500,000 | 630,375 | ||||||
Series 8-L 5.00% 4/1/35 |
1,250,000 | 1,494,813 | ||||||
Series A 4.00% 10/1/34 |
400,000 | 456,012 | ||||||
Series A 4.00% 10/1/36 |
500,000 | 567,740 | ||||||
Otsego Charter School Lease Revenue |
||||||||
(Kaleidoscope Charter School) |
||||||||
Series A 5.00% 9/1/34 |
520,000 | 555,682 | ||||||
Series A 5.00% 9/1/44 |
1,165,000 | 1,226,931 | ||||||
Rice County Educational Facilities Revenue |
||||||||
(Shattuck-St. Marys School) Series A 144A 5.00% 8/1/22 # |
2,855,000 | 3,022,360 | ||||||
St. Cloud Charter School Lease Revenue |
||||||||
(Stride Academy Project) Series A 5.00% 4/1/46 |
875,000 | 598,824 | ||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue |
||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 |
1,945,000 | 2,066,990 | ||||||
(Great River School Project) |
||||||||
Series A 144A 4.75% 7/1/29 # |
300,000 | 323,544 | ||||||
Series A 144A 5.50% 7/1/52 # |
735,000 | 795,571 | ||||||
(Nova Classical Academy Project) |
||||||||
Series A 4.00% 9/1/36 |
500,000 | 531,695 | ||||||
Series A 4.125% 9/1/47 |
1,750,000 | 1,843,853 | ||||||
(Twin Cities Academy Project) Series A 5.30% 7/1/45 |
1,440,000 | 1,550,275 | ||||||
University of Minnesota |
||||||||
Series A 5.00% 4/1/34 |
925,000 | 1,127,418 | ||||||
Series A 5.00% 9/1/34 |
2,625,000 | 3,307,343 | ||||||
Series A 5.00% 4/1/35 |
3,175,000 | 3,860,483 | ||||||
Series A 5.00% 4/1/36 |
2,650,000 | 3,215,086 | ||||||
Series A 5.00% 4/1/37 |
1,125,000 | 1,361,666 | ||||||
Series A 5.00% 9/1/40 |
1,560,000 | 1,936,459 | ||||||
Series A 5.00% 9/1/41 |
1,750,000 | 2,168,967 |
26
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Education Revenue Bonds (continued) |
||||||||
University of Minnesota |
||||||||
Series A 5.00% 4/1/44 |
3,000,000 | $ | 3,813,420 | |||||
|
|
|||||||
108,463,730 | ||||||||
|
|
|||||||
Electric Revenue Bonds 9.51% |
||||||||
Chaska Electric Revenue |
||||||||
(Generating Facilities) Series A 5.00% 10/1/30 |
1,150,000 | 1,377,987 | ||||||
Minnesota Municipal Power Agency Electric Revenue |
||||||||
4.00% 10/1/41 |
1,000,000 | 1,114,160 | ||||||
5.00% 10/1/29 |
395,000 | 465,472 | ||||||
5.00% 10/1/30 |
500,000 | 587,990 | ||||||
5.00% 10/1/33 |
1,205,000 | 1,412,212 | ||||||
5.00% 10/1/47 |
2,000,000 | 2,387,780 | ||||||
Series A 5.00% 10/1/30 |
1,060,000 | 1,246,539 | ||||||
Series A 5.00% 10/1/34 |
750,000 | 878,400 | ||||||
Series A 5.00% 10/1/35 |
1,525,000 | 1,785,287 | ||||||
Northern Municipal Power Agency Electric System Revenue |
||||||||
5.00% 1/1/27 |
540,000 | 657,007 | ||||||
5.00% 1/1/28 |
350,000 | 424,077 | ||||||
5.00% 1/1/28 |
210,000 | 261,101 | ||||||
5.00% 1/1/29 |
585,000 | 706,077 | ||||||
5.00% 1/1/29 |
220,000 | 272,334 | ||||||
5.00% 1/1/30 |
520,000 | 624,224 | ||||||
5.00% 1/1/31 |
200,000 | 244,602 | ||||||
5.00% 1/1/32 |
210,000 | 255,238 | ||||||
5.00% 1/1/35 |
160,000 | 192,610 | ||||||
5.00% 1/1/36 |
180,000 | 216,157 | ||||||
5.00% 1/1/41 |
400,000 | 476,016 | ||||||
Series A 5.00% 1/1/25 |
125,000 | 139,657 | ||||||
Series A 5.00% 1/1/26 |
425,000 | 473,658 | ||||||
Series A 5.00% 1/1/31 |
520,000 | 576,779 | ||||||
Puerto Rico Electric Power Authority Revenue |
||||||||
Series CCC 5.25% 7/1/27 |
1,255,000 | 1,007,137 | ||||||
Series WW 5.00% 7/1/28 |
1,775,000 | 1,420,000 | ||||||
Rochester Electric Utility Revenue |
||||||||
Series A 5.00% 12/1/42 |
1,395,000 | 1,679,636 | ||||||
Series A 5.00% 12/1/47 |
2,265,000 | 2,718,272 | ||||||
Series B 5.00% 12/1/27 |
295,000 | 339,734 | ||||||
Series B 5.00% 12/1/28 |
275,000 | 315,719 | ||||||
Series B 5.00% 12/1/31 |
1,365,000 | 1,562,870 | ||||||
Series B 5.00% 12/1/33 |
300,000 | 344,742 |
27
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Electric Revenue Bonds (continued) |
||||||||
Southern Minnesota Municipal Power Agency Revenue |
||||||||
Series A 5.00% 1/1/41 |
1,310,000 | $ | 1,545,053 | |||||
Series A 5.00% 1/1/42 |
1,500,000 | 1,840,710 | ||||||
Series A 5.00% 1/1/46 |
2,000,000 | 2,353,220 | ||||||
Series A 5.00% 1/1/47 |
3,130,000 | 3,832,967 | ||||||
Southern Minnesota Municipal Power Agency Revenue Capital Appreciation Series A 6.70% 1/1/25 (NATL)^ |
5,000,000 | 4,631,050 | ||||||
St. Paul Housing & Redevelopment Energy Revenue |
||||||||
Series A 4.00% 10/1/30 |
1,235,000 | 1,410,815 | ||||||
Series A 4.00% 10/1/31 |
885,000 | 1,002,740 | ||||||
Series A 4.00% 10/1/33 |
365,000 | 411,034 | ||||||
Western Minnesota Municipal Power Agency Revenue |
||||||||
Series A 5.00% 1/1/34 |
4,000,000 | 4,590,960 | ||||||
Series A 5.00% 1/1/40 |
3,935,000 | 4,495,462 | ||||||
Series A 5.00% 1/1/46 |
3,000,000 | 3,417,540 | ||||||
|
|
|||||||
55,695,025 | ||||||||
|
|
|||||||
Healthcare Revenue Bonds 27.75% |
||||||||
Anoka Healthcare & Housing Facilities Revenue |
||||||||
(The Homestead at Anoka Project) |
||||||||
5.125% 11/1/49 |
1,100,000 | 1,166,572 | ||||||
5.375% 11/1/34 |
320,000 | 349,024 | ||||||
Apple Valley Senior Housing Revenue |
||||||||
(PHS Apple Valley Senior Housing, Inc. - Orchard Path Project) |
||||||||
5.00% 9/1/43 |
465,000 | 505,241 | ||||||
5.00% 9/1/58 |
3,220,000 | 3,479,661 | ||||||
Apple Valley Senior Living Revenue |
||||||||
(Senior Living LLC Project) |
||||||||
2nd Tier Series B 5.00% 1/1/47 |
1,725,000 | 1,757,033 | ||||||
2nd Tier Series B 5.25% 1/1/37 |
510,000 | 532,950 | ||||||
4th Tier Series D 7.00% 1/1/37 |
1,665,000 | 1,721,510 | ||||||
4th Tier Series D 7.25% 1/1/52 |
2,500,000 | 2,606,100 | ||||||
Bethel Housing & Health Care Facilities Revenue |
||||||||
(Benedictine Health System St. Peter Communities Project) Series A 5.50% 12/1/48 |
2,350,000 | 2,490,225 | ||||||
Bethel Senior Housing Revenue |
||||||||
(The Lodge at The Lakes at Stillwater Project) |
||||||||
5.00% 6/1/38 |
450,000 | 479,885 | ||||||
5.00% 6/1/48 |
1,000,000 | 1,059,520 | ||||||
5.00% 6/1/53 |
600,000 | 633,552 |
28
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Center City Health Care Facilities Revenue |
||||||||
(Hazelden Betty Ford Foundation Project) |
||||||||
4.00% 11/1/34 |
500,000 | $ | 572,460 | |||||
4.00% 11/1/41 |
800,000 | 897,464 | ||||||
5.00% 11/1/26 |
500,000 | 581,495 | ||||||
Crookston Health Care Facilities Revenue |
||||||||
(Riverview Health Project) |
||||||||
5.00% 5/1/38 |
100,000 | 112,415 | ||||||
5.00% 5/1/44 |
1,500,000 | 1,663,260 | ||||||
5.00% 5/1/51 |
1,585,000 | 1,749,095 | ||||||
Dakota County Community Development Agency Senior Housing Revenue |
||||||||
(Walker Highview Hills Project) |
||||||||
Series A 144A 5.00% 8/1/36 # |
280,000 | 293,247 | ||||||
Series A 144A 5.00% 8/1/46 # |
2,380,000 | 2,473,153 | ||||||
Deephaven Housing & Healthcare Revenue |
||||||||
(St. Therese Senior Living Project) |
||||||||
Series A 5.00% 4/1/38 |
730,000 | 749,177 | ||||||
Series A 5.00% 4/1/40 |
705,000 | 723,048 | ||||||
Series A 5.00% 4/1/48 |
315,000 | 322,330 | ||||||
Duluth Economic Development Authority |
||||||||
(Essentia Health Obligated Group) Series A 5.00% 2/15/48 |
1,850,000 | 2,198,743 | ||||||
(St. Lukes Hospital of Duluth Obligated Group) |
||||||||
5.75% 6/15/32 |
1,850,000 | 2,035,129 | ||||||
6.00% 6/15/39 |
3,570,000 | 3,961,201 | ||||||
Glencoe Health Care Facilities Revenue |
||||||||
(Glencoe Regional Health Services Project) |
||||||||
4.00% 4/1/24 |
500,000 | 526,995 | ||||||
4.00% 4/1/25 |
660,000 | 695,594 | ||||||
4.00% 4/1/31 |
60,000 | 62,795 | ||||||
Hayward Health Care Facilities Revenue |
||||||||
(American Baptist Homes Midwest Obligated Group) |
||||||||
5.375% 8/1/34 |
660,000 | 694,643 | ||||||
5.75% 2/1/44 |
500,000 | 527,905 | ||||||
(St. Johns Lutheran Home of Albert Lea Project) 5.375% 10/1/44 |
575,000 | 601,829 | ||||||
Maple Grove Health Care Facilities Revenue |
||||||||
(Maple Grove Hospital Corporation) |
||||||||
4.00% 5/1/37 |
2,000,000 | 2,216,940 | ||||||
5.00% 5/1/27 |
1,400,000 | 1,746,640 | ||||||
5.00% 5/1/29 |
1,000,000 | 1,232,540 |
29
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Maple Grove Health Care Facilities Revenue |
||||||||
(Maple Grove Hospital Corporation) |
||||||||
5.00% 5/1/30 |
850,000 | $ | 1,042,746 | |||||
5.00% 5/1/31 |
500,000 | 609,705 | ||||||
5.00% 5/1/32 |
500,000 | 607,015 | ||||||
(North Memorial Health Care) |
||||||||
5.00% 9/1/31 |
1,000,000 | 1,179,110 | ||||||
5.00% 9/1/32 |
1,000,000 | 1,175,600 | ||||||
Maple Plain Senior Housing & Health Care Revenue |
||||||||
(Haven Homes Incorporate Project) 5.00% 7/1/54 |
3,500,000 | 3,723,300 | ||||||
Minneapolis Health Care System Revenue |
||||||||
(Fairview Health Services) |
||||||||
Series A 4.00% 11/15/48 |
5,600,000 | 6,265,168 | ||||||
Series A 5.00% 11/15/33 |
500,000 | 595,145 | ||||||
Series A 5.00% 11/15/34 |
500,000 | 593,735 | ||||||
Series A 5.00% 11/15/44 |
1,000,000 | 1,170,140 | ||||||
Series A 5.00% 11/15/49 |
3,475,000 | 4,223,167 | ||||||
Minneapolis Senior Housing & Healthcare Revenue |
||||||||
(Ecumen-Abiitan Mill City Project) |
||||||||
5.00% 11/1/35 |
500,000 | 528,690 | ||||||
5.25% 11/1/45 |
1,950,000 | 2,055,846 | ||||||
5.375% 11/1/50 |
455,000 | 480,830 | ||||||
Minneapolis St. Paul Housing & Redevelopment Authority |
||||||||
Health Care Facilities Revenue |
||||||||
(Allina Health System) Series A 5.00% 11/15/28 |
1,550,000 | 1,951,481 | ||||||
(Childrens Health Care) Series A 5.25% 8/15/35 |
2,085,000 | 2,160,665 | ||||||
Minnesota Agricultural & Economic Development Board Revenue |
||||||||
(Essenthia Health Obligated Group) |
||||||||
Series C-1 5.00% 2/15/30 (AGC) |
5,725,000 | 5,808,471 | ||||||
Series C-1 5.25% 2/15/23 (AGC) |
5,000,000 | 5,096,350 | ||||||
Series C-1 5.50% 2/15/25 (AGC) |
5,120,000 | 5,218,560 | ||||||
Red Wing Senior Housing |
||||||||
(Deer Crest Project) |
||||||||
Series A 5.00% 11/1/27 |
430,000 | 445,355 | ||||||
Series A 5.00% 11/1/32 |
330,000 | 341,326 | ||||||
Series A 5.00% 11/1/42 |
1,250,000 | 1,291,000 | ||||||
Rochester Health Care & Housing Revenue |
||||||||
(The Homestead at Rochester Project) Series A 6.875% 12/1/48 |
2,980,000 | 3,271,951 |
30
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Rochester Health Care Facilities Revenue |
||||||||
(Mayo Clinic) 4.00% 11/15/41 |
4,515,000 | $ | 4,731,585 | |||||
Series D Remarketing 5.00% 11/15/38 |
6,405,000 | 6,549,817 | ||||||
(Olmsted Medical Center Project) |
||||||||
5.00% 7/1/24 |
295,000 | 334,751 | ||||||
5.00% 7/1/33 |
650,000 | 718,380 | ||||||
5.875% 7/1/30 |
1,850,000 | 1,915,915 | ||||||
Sartell Health Care Facilities Revenue |
||||||||
(Country Manor Campus Project) |
||||||||
Series A 5.25% 9/1/27 |
1,280,000 | 1,395,930 | ||||||
Series A 5.30% 9/1/37 |
1,200,000 | 1,317,792 | ||||||
Sauk Rapids Health Care Housing Facilities Revenue |
||||||||
(Good Shepherd Lutheran Home) 5.125% 1/1/39 |
1,350,000 | 1,399,329 | ||||||
Shakopee Health Care Facilities Revenue |
||||||||
(St. Francis Regional Medical Center) |
||||||||
4.00% 9/1/31 |
915,000 | 991,549 | ||||||
5.00% 9/1/24 |
575,000 | 669,519 | ||||||
5.00% 9/1/25 |
750,000 | 874,365 | ||||||
5.00% 9/1/26 |
575,000 | 668,823 | ||||||
5.00% 9/1/27 |
405,000 | 469,804 | ||||||
5.00% 9/1/28 |
425,000 | 492,507 | ||||||
5.00% 9/1/29 |
425,000 | 491,313 | ||||||
5.00% 9/1/34 |
730,000 | 826,433 | ||||||
St. Cloud Health Care Revenue |
||||||||
(Centracare Health System Project) |
||||||||
4.00% 5/1/49 |
4,315,000 | 4,839,143 | ||||||
5.00% 5/1/48 |
5,090,000 | 6,287,321 | ||||||
Series A 4.00% 5/1/37 |
965,000 | 1,072,752 | ||||||
Series A 5.00% 5/1/46 |
3,715,000 | 4,383,849 | ||||||
Unrefunded Balance 5.125% 5/1/30 |
740,000 | 758,433 | ||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Allina Health System) Series A-1 Unrefunded Balance 5.25% 11/15/29 |
2,825,000 | 2,848,702 | ||||||
(Fairview Health Services) |
||||||||
Series A 4.00% 11/15/43 |
2,450,000 | 2,733,343 | ||||||
Series A 5.00% 11/15/47 |
1,560,000 | 1,884,012 | ||||||
(HealthPartners Obligated Group Project) |
||||||||
Series A 5.00% 7/1/29 |
2,200,000 | 2,609,882 | ||||||
Series A 5.00% 7/1/32 |
3,000,000 | 3,494,160 | ||||||
Series A 5.00% 7/1/33 |
1,260,000 | 1,461,411 |
31
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue |
||||||||
(Episcopal Homes Project) 5.125% 5/1/48 |
3,100,000 | $ | 3,195,077 | |||||
St. Paul Housing & Redevelopment Authority Multifamily Housing Revenue |
||||||||
(Marian Center Project) |
||||||||
Series A 5.30% 11/1/30 |
500,000 | 500,295 | ||||||
Series A 5.375% 5/1/43 |
500,000 | 500,150 | ||||||
Wayzata Senior Housing Revenue |
||||||||
(Folkestone Senior Living Community) |
||||||||
3.75% 8/1/36 |
500,000 | 518,485 | ||||||
4.00% 8/1/44 |
800,000 | 833,320 | ||||||
5.00% 8/1/49 |
1,000,000 | 1,106,450 | ||||||
5.00% 8/1/54 |
875,000 | 966,026 | ||||||
West St. Paul Housing and Health Care Facilities Revenue |
||||||||
(Walker Westwood Ridge Campus Project) |
||||||||
4.50% 11/1/40 |
250,000 | 261,475 | ||||||
4.75% 11/1/52 |
750,000 | 790,020 | ||||||
Winona Health Care Facilities Revenue |
||||||||
(Winona Health Obligation Group) |
||||||||
4.50% 7/1/25 |
850,000 | 882,496 | ||||||
4.65% 7/1/26 |
540,000 | 561,913 | ||||||
Woodbury Housing & Redevelopment Authority Revenue |
||||||||
(St. Therese of Woodbury) |
||||||||
5.00% 12/1/34 |
500,000 | 536,100 | ||||||
5.125% 12/1/44 |
1,605,000 | 1,703,547 | ||||||
5.25% 12/1/49 |
750,000 | 798,630 | ||||||
|
|
|||||||
162,629,531 | ||||||||
|
|
|||||||
Housing Revenue Bonds 0.41% |
||||||||
Minnesota Housing Finance Agency Homeownership Finance (Mortgage-Backed Securities Program) |
||||||||
Series D 4.70% 1/1/31 (GNMA) (FNMA) (FHLMC) |
965,000 | 976,831 | ||||||
Northwest Multi-County Housing & Redevelopment Authority |
||||||||
(Pooled Housing Program) 5.50% 7/1/45 |
1,330,000 | 1,428,979 | ||||||
|
|
|||||||
2,405,810 | ||||||||
|
|
|||||||
Lease Revenue Bonds 2.79% |
||||||||
Minnesota General Fund Revenue Appropriations |
||||||||
Series A 5.00% 6/1/38 |
1,250,000 | 1,417,963 | ||||||
Series A 5.00% 6/1/43 |
3,835,000 | 4,341,680 | ||||||
Series B 5.00% 3/1/28 |
2,500,000 | 2,731,575 |
32
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Lease Revenue Bonds (continued) |
||||||||
Minnesota Housing Finance Agency |
||||||||
(State Appropriation Housing Infrastructure) |
||||||||
Series C 5.00% 8/1/34 |
1,565,000 | $ | 1,829,047 | |||||
Series C 5.00% 8/1/35 |
1,645,000 | 1,919,962 | ||||||
University of Minnesota Special Purpose Revenue |
||||||||
(State Supported Biomed Science Research Facilities Funding Project) |
||||||||
Series A 5.00% 8/1/35 |
3,960,000 | 4,093,294 | ||||||
|
|
|||||||
16,333,521 | ||||||||
|
|
|||||||
Local General Obligation Bonds 9.79% |
||||||||
Brainerd Independent School District No. 181 |
||||||||
(School Building) |
||||||||
Series A 4.00% 2/1/38 |
1,500,000 | 1,692,720 | ||||||
Series A 4.00% 2/1/43 |
3,500,000 | 3,911,390 | ||||||
Burnsville-Eagan-Savage Independent School District No. 191 |
||||||||
(Alternative Facilities) |
||||||||
Series A 4.00% 2/1/28 |
920,000 | 1,040,814 | ||||||
Series A 4.00% 2/1/29 |
1,800,000 | 2,033,226 | ||||||
Chaska Independent School District No. 112 |
||||||||
(School Building) Series A 5.00% 2/1/27 |
1,905,000 | 2,351,227 | ||||||
Duluth |
||||||||
(DECC Improvement) |
||||||||
Series A 5.00% 2/1/32 |
1,000,000 | 1,212,030 | ||||||
Series A 5.00% 2/1/33 |
3,585,000 | 4,336,846 | ||||||
Duluth Independent School District No. 709 |
||||||||
Series A 4.00% 2/1/27 |
160,000 | 181,293 | ||||||
Series A 4.00% 2/1/28 |
1,250,000 | 1,413,675 | ||||||
Hennepin County |
||||||||
Series A 5.00% 12/1/26 |
1,885,000 | 2,398,022 | ||||||
Series A 5.00% 12/1/36 |
940,000 | 1,163,513 | ||||||
Series A 5.00% 12/1/37 |
2,850,000 | 3,597,527 | ||||||
Series A 5.00% 12/1/37 |
2,645,000 | 3,265,411 | ||||||
Series A 5.00% 12/1/38 |
3,310,000 | 4,168,548 | ||||||
Series B 5.00% 12/1/30 |
1,000,000 | 1,256,670 | ||||||
Series B 5.00% 12/15/39 |
5,000,000 | 6,426,350 | ||||||
Series C 5.00% 12/1/28 |
1,500,000 | 1,999,320 | ||||||
Series C 5.00% 12/1/30 |
1,245,000 | 1,564,554 | ||||||
Series C 5.00% 12/1/37 |
3,000,000 | 3,703,680 | ||||||
Mounds View Independent School District No. 621 |
||||||||
(Minnesota School District Credit Enhancement |
||||||||
Program) Series A 4.00% 2/1/43 |
3,000,000 | 3,348,270 |
33
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Local General Obligation Bonds (continued) |
||||||||
Mountain Iron-Buhl Independent School District No. 712 |
||||||||
(School Building) Series A 4.00% 2/1/26 |
1,315,000 | $ | 1,540,128 | |||||
St. Michael-Albertville Independent School District No. 885 |
||||||||
(School Building) Series A 5.00% 2/1/27 |
1,865,000 | 2,299,265 | ||||||
Wayzata Independent School District No. 284 |
||||||||
Series A 5.00% 2/1/28 |
1,950,000 | 2,480,810 | ||||||
|
|
|||||||
57,385,289 | ||||||||
|
|
|||||||
Pre-Refunded/Escrowed to Maturity Bonds 7.78% |
||||||||
Anoka Health Care Facilities Revenue |
||||||||
(The Homestead at Anoka Project) Series A 7.00% 11/1/40-19§ |
1,000,000 | 1,019,090 | ||||||
Dakota & Washington Counties Housing & Redevelopment Authority Single Family Residential Mortgage Revenue |
||||||||
(City of Anoka) 8.45% 9/1/19 (GNMA) (AMT) |
9,000,000 | 9,000,000 | ||||||
(City of Bloomington) |
||||||||
Series B 8.375% 9/1/21 (GNMA) (AMT) |
14,115,000 | 15,970,276 | ||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(St. Catherine University) |
||||||||
Series 7-Q 5.00% 10/1/23-22§ |
350,000 | 389,805 | ||||||
Series 7-Q 5.00% 10/1/24-22§ |
475,000 | 529,022 | ||||||
Series 7-Q 5.00% 10/1/27-22§ |
200,000 | 222,746 | ||||||
Rochester Healthcare & Housing Revenue |
||||||||
(Samaritan Bethany Project) Series A 7.375% 12/1/41-19§ |
5,220,000 | 5,297,256 | ||||||
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue |
||||||||
(Healtheast Care System Project) |
||||||||
Series A 5.00% 11/15/29-25§ |
910,000 | 1,114,695 | ||||||
Series A 5.00% 11/15/30-25§ |
670,000 | 820,710 | ||||||
University of Minnesota |
||||||||
Series A 5.25% 12/1/29-20§ |
1,850,000 | 1,945,331 | ||||||
Series A 5.50% 7/1/21 |
8,795,000 | 9,281,276 | ||||||
|
|
|||||||
45,590,207 | ||||||||
|
|
|||||||
Special Tax Revenue Bonds 3.03% |
||||||||
Minneapolis Development Revenue |
||||||||
(Limited Tax Supported Common Bond Fund) |
||||||||
Series 2-A 6.00% 12/1/40 |
3,000,000 | 3,174,090 | ||||||
Minneapolis Revenue |
||||||||
(YMCA Greater Twin Cities Project) 4.00% 6/1/30 |
250,000 | 279,190 | ||||||
Puerto Rico Sales Tax Financing Revenue |
||||||||
(Capital Appreciation - Restructured) |
||||||||
Series A-1 5.375% 7/1/46 ^ |
11,323,000 | 3,040,678 |
34
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Special Tax Revenue Bonds (continued) |
||||||||
Puerto Rico Sales Tax Financing Revenue |
||||||||
(Capital Appreciation - Restructured) |
||||||||
Series A-1 5.625% 7/1/51 ^ |
12,906,000 | $ | 2,508,152 | |||||
(Restructured) |
||||||||
Series A-1 4.75% 7/1/53 |
3,143,000 | 3,230,407 | ||||||
Series A-1 5.00% 7/1/58 |
835,000 | 872,709 | ||||||
St. Paul Sales Tax Revenue |
||||||||
Series G 5.00% 11/1/30 |
655,000 | 771,878 | ||||||
Series G 5.00% 11/1/31 |
1,500,000 | 1,760,760 | ||||||
Virgin Islands Public Finance Authority |
||||||||
(Matching Fund Senior Lien) 5.00% 10/1/29 (AGM) |
2,000,000 | 2,130,480 | ||||||
|
|
|||||||
17,768,344 | ||||||||
|
|
|||||||
State General Obligation Bonds 12.44% |
||||||||
Minnesota |
||||||||
Series A Unrefunded Balance 5.00% 10/1/24 |
4,555,000 | 4,922,133 | ||||||
Series A Unrefunded Balance 5.00% 10/1/27 |
5,200,000 | 5,610,176 | ||||||
(State Trunk Highway) |
||||||||
Series B 5.00% 10/1/29 |
5,000,000 | 5,386,900 | ||||||
Series E 5.00% 10/1/26 |
3,395,000 | 4,298,579 | ||||||
(Various Purposes) |
||||||||
Series A 5.00% 8/1/25 |
5,545,000 | 6,589,013 | ||||||
Series A 5.00% 8/1/27 |
7,840,000 | 9,582,989 | ||||||
Series A 5.00% 8/1/29 |
2,500,000 | 3,040,425 | ||||||
Series A 5.00% 8/1/30 |
4,200,000 | 4,937,940 | ||||||
Series A 5.00% 8/1/32 |
3,875,000 | 4,541,733 | ||||||
Series A 5.00% 8/1/33 |
2,075,000 | 2,693,599 | ||||||
Series A 5.00% 10/1/33 |
1,000,000 | 1,271,250 | ||||||
Series A 5.00% 8/1/35 |
2,975,000 | 3,837,780 | ||||||
Series A 5.00% 8/1/38 |
3,450,000 | 4,412,515 | ||||||
Series A Unrefunded Balance 4.00% 8/1/27 |
955,000 | 1,027,007 | ||||||
Series D 5.00% 8/1/26 |
6,000,000 | 7,563,780 | ||||||
Series D 5.00% 8/1/27 |
2,525,000 | 3,174,001 | ||||||
|
|
|||||||
72,889,820 | ||||||||
|
|
|||||||
Transportation Revenue Bonds 7.35% |
||||||||
Minneapolis St. Paul Metropolitan Airports Commission Revenue |
||||||||
(Senior) |
||||||||
Series A 5.00% 1/1/28 |
1,250,000 | 1,265,750 | ||||||
Series C 5.00% 1/1/29 |
350,000 | 438,211 | ||||||
Series C 5.00% 1/1/33 |
850,000 | 1,045,899 | ||||||
Series C 5.00% 1/1/36 |
600,000 | 732,390 | ||||||
Series C 5.00% 1/1/41 |
600,000 | 724,398 |
35
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Transportation Revenue Bonds (continued) |
||||||||
Minneapolis St. Paul Metropolitan Airports Commission Revenue |
||||||||
(Senior) |
||||||||
Series C 5.00% 1/1/46 |
1,595,000 | $ | 1,913,266 | |||||
(Subordinate) |
||||||||
Series A 5.00% 1/1/35 |
1,000,000 | 1,138,250 | ||||||
Series A 5.00% 1/1/44 |
3,000,000 | 3,763,950 | ||||||
Series A 5.00% 1/1/49 |
5,000,000 | 6,229,000 | ||||||
Series B 5.00% 1/1/26 |
575,000 | 626,003 | ||||||
Series B 5.00% 1/1/27 |
1,160,000 | 1,261,210 | ||||||
Series B 5.00% 1/1/28 |
2,750,000 | 2,986,637 | ||||||
Series B 5.00% 1/1/29 |
120,000 | 130,152 | ||||||
Series B 5.00% 1/1/30 |
1,675,000 | 1,813,489 | ||||||
Series B 5.00% 1/1/31 |
1,750,000 | 1,891,347 | ||||||
Series B 5.00% 1/1/44 (AMT) |
5,095,000 | 6,301,292 | ||||||
Series B 5.00% 1/1/49 (AMT) |
6,150,000 | 7,570,650 | ||||||
St. Paul Port Authority Revenue |
||||||||
(Amherst H. Wilder Foundation) Series 3 5.00% 12/1/36 |
3,200,000 | 3,254,528 | ||||||
|
|
|||||||
43,086,422 | ||||||||
|
|
|||||||
Water & Sewer Revenue Bonds 3.07% |
||||||||
Guam Government Waterworks Authority 5.00% 7/1/40 |
1,930,000 | 2,243,278 | ||||||
Metropolitan Council General Obligation Wastewater Revenue |
||||||||
(Minneapolis-St. Paul Metropolitan Area) |
||||||||
Series B 4.00% 9/1/27 |
2,400,000 | 2,609,640 | ||||||
Series B 5.00% 9/1/25 |
2,000,000 | 2,229,700 | ||||||
Series C 4.00% 3/1/31 |
3,120,000 | 3,686,498 | ||||||
Series C 4.00% 3/1/32 |
3,225,000 | 3,792,213 | ||||||
Series E 5.00% 9/1/23 |
2,000,000 | 2,230,320 | ||||||
Minnesota Public Facilities Authority Series B 4.00% 3/1/26 |
1,000,000 | 1,181,450 | ||||||
|
|
|||||||
17,973,099 | ||||||||
|
|
|||||||
Total Municipal Bonds (cost $568,514,354) |
603,841,947 | |||||||
|
|
36
Principal amount° | Value (US $) | |||||||
Short-Term Investments 1.53% |
||||||||
Variable Rate Demand Notes 1.53%¤ |
||||||||
Minneapolis Health Care System Revenue (Fairview Health Services) |
||||||||
Series C 1.37% 11/15/48 (LOC Wells Fargo Bank N.A.) |
3,825,000 | $ | 3,825,000 | |||||
Minneapolis St. Paul Housing & Redevelopment Authority |
||||||||
Health Care Facilities Revenue |
||||||||
(Allina Health System) Series B-2 1.37% 11/15/35 |
||||||||
(LOC JPMorgan Chase Bank N.A.) |
2,950,000 | 2,950,000 | ||||||
(Childrens Hospitals and Clinics) |
||||||||
Series A 0.75% 8/15/34 (AGM) (SPA - US Bank N.A.) |
1,000,000 | 1,000,000 | ||||||
Series A-2 0.75% 8/15/37 (AGM) (SPA - US Bank N.A.) |
1,000,000 | 1,000,000 | ||||||
Series B 0.74% 8/15/25 (AGM) (SPA - US Bank N.A.) |
200,000 | 200,000 | ||||||
|
|
|||||||
Total Short-Term Investments (cost $8,975,000) |
8,975,000 | |||||||
|
|
|||||||
Total Value of Securities 104.58% |
$ | 612,816,947 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Aug. 31, 2019, the aggregate value of Rule 144A securities was $10,529,024, which represents 1.80% of the Funds net assets. See Note 8 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 Aug. 31, 2019. |
§ | 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 8 in Notes to financial statements. |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
37
Schedules of investments |
Delaware Tax-Free Minnesota Fund
Summary of abbreviations:
AGC Insured by Assured Guaranty Corporation
AGM Insured by Assured Guaranty Municipal Corporation
AMT Subject to Alternative Minimum Tax
FHLMC Federal Home Loan Mortgage Corporation collateral
FNMA Federal National Mortgage Association collateral
GNMA Government National Mortgage Association collateral
LOC Letter of Credit
N.A. National Association
NATL Insured by National Public Finance Guarantee Corporation
SPA Stand-by Purchase Agreement
USD US Dollar
See accompanying notes, which are an integral part of the financial statements.
38
Schedules of investments |
Delaware Tax-Free Minnesota Intermediate Fund | August 31, 2019 |
Principal amount° | Value (US $) | |||||||
Municipal Bonds 97.85% |
||||||||
Corporate Revenue Bond 0.32% |
||||||||
St. Paul Port Authority Solid Waste Disposal Revenue |
||||||||
(Gerdau St. Paul Steel Mill Project) Series 7 144A 4.50% 10/1/37 (AMT)# |
255,000 | $ | 259,016 | |||||
|
|
|||||||
259,016 | ||||||||
|
|
|||||||
Education Revenue Bonds 15.20% |
||||||||
Bethel Charter School Lease Revenue |
||||||||
(Spectrum High School Project) Series A 4.00% 7/1/32 |
425,000 | 458,481 | ||||||
Brooklyn Park Charter School Lease Revenue |
||||||||
(Prairie Seeds Academy Project) Series A 5.00% 3/1/34 |
485,000 | 504,094 | ||||||
Cologne Charter School Lease Revenue |
||||||||
(Cologne Academy Project) Series A 5.00% 7/1/29 |
305,000 | 332,057 | ||||||
Duluth Housing & Redevelopment Authority Revenue |
||||||||
(Duluth Public Schools Academy Project) Series A 5.00% 11/1/38 |
400,000 | 444,732 | ||||||
Forest Lake Charter School Lease Revenue Fund |
||||||||
(Lakes International Language Academy Project) Series A 5.50% 8/1/36 |
420,000 | 453,172 | ||||||
Hugo Charter School Lease Revenue |
||||||||
(Noble Academy Project) Series A 5.00% 7/1/29 |
530,000 | 572,071 | ||||||
Minneapolis Charter School Lease Revenue |
||||||||
(Hiawatha Academies Project) Series A 5.00% 7/1/31 |
500,000 | 548,500 | ||||||
Minneapolis Student Housing Revenue |
||||||||
(Riverton Community Housing Project) 5.25% 8/1/39 |
525,000 | 565,598 | ||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(Bethel University) 5.00% 5/1/32 |
525,000 | 625,847 | ||||||
(Gustavus Adolphus College) 5.00% 10/1/34 |
435,000 | 528,416 | ||||||
5.00% 10/1/35 |
555,000 | 671,905 | ||||||
(St. Catherine University) Series A 5.00% 10/1/35 |
565,000 | 683,384 | ||||||
(St. Johns University) Series 8-I 5.00% 10/1/31 |
130,000 | 154,222 | ||||||
(St. Olaf College) |
||||||||
Series 8-G 5.00% 12/1/31 |
125,000 | 150,154 | ||||||
Series 8-G 5.00% 12/1/32 |
125,000 | 149,947 | ||||||
(St. Scholastica College) Series H 5.125% 12/1/30 |
1,000,000 | 1,009,640 | ||||||
(University of St. Thomas) |
||||||||
4.00% 10/1/36 |
300,000 | 352,635 | ||||||
5.00% 10/1/34 |
350,000 | 449,239 | ||||||
5.00% 10/1/35 |
750,000 | 959,505 | ||||||
Series 7-U 4.00% 4/1/26 |
1,400,000 | 1,531,194 | ||||||
Rice County Educational Facilities Revenue |
||||||||
(Shattuck-St. Marys School) Series A 144A 5.00% 8/1/22 # |
325,000 | 344,051 |
39
Schedules of investments |
Delaware Tax-Free Minnesota Intermediate Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Education Revenue Bonds (continued) |
||||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue |
||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 |
340,000 | $ | 361,325 | |||||
(Great River School Project) Series A 144A 5.25% 7/1/33 # |
140,000 | 153,423 | ||||||
(Twin Cities Academy Project) Series A 5.30% 7/1/45 |
260,000 | 279,911 | ||||||
|
|
|||||||
12,283,503 | ||||||||
|
|
|||||||
Electric Revenue Bonds 10.09% |
||||||||
Central Minnesota Municipal Power Agency |
||||||||
(Brookings Twin Cities Transmission Project) |
||||||||
Series E 5.00% 1/1/21 |
1,095,000 | 1,151,152 | ||||||
Series E 5.00% 1/1/23 |
1,000,000 | 1,085,670 | ||||||
Chaska Electric Revenue |
||||||||
Series A 5.00% 10/1/28 |
250,000 | 302,147 | ||||||
Minnesota Municipal Power Agency Electric Revenue |
||||||||
Series A 5.00% 10/1/29 |
500,000 | 589,205 | ||||||
Series A 5.00% 10/1/30 |
240,000 | 282,235 | ||||||
Northern Municipal Power Agency Electric System Revenue |
||||||||
5.00% 1/1/29 |
150,000 | 181,045 | ||||||
5.00% 1/1/30 |
235,000 | 289,111 | ||||||
5.00% 1/1/31 |
350,000 | 417,970 | ||||||
Series A 5.00% 1/1/25 |
200,000 | 223,452 | ||||||
Rochester Electric Utility Revenue |
||||||||
Series A 5.00% 12/1/28 |
300,000 | 376,326 | ||||||
Series A 5.00% 12/1/29 |
500,000 | 624,975 | ||||||
Series A 5.00% 12/1/31 |
575,000 | 710,413 | ||||||
St. Paul Housing & Redevelopment Energy Revenue Series A 4.00% 10/1/30 |
425,000 | 485,503 | ||||||
Western Minnesota Municipal Power Agency Revenue Series A 5.00% 1/1/33 |
1,250,000 | 1,435,538 | ||||||
|
|
|||||||
8,154,742 | ||||||||
|
|
|||||||
Healthcare Revenue Bonds 31.14% |
||||||||
Anoka Healthcare & Housing Facilities Revenue |
||||||||
(The Homestead at Anoka Project) 5.375% 11/1/34 |
270,000 | 294,489 | ||||||
Apple Valley Senior Living Revenue |
||||||||
(Senior Living LLC Project) |
||||||||
3rd Tier Series C 4.25% 1/1/27 |
500,000 | 492,245 | ||||||
3rd Tier Series C 5.00% 1/1/32 |
420,000 | 420,882 |
40
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Bethel Housing & Health Care Facilities Revenue |
||||||||
(Benedictine Health System - St. Peter Communities Project) Series A 5.50% 12/1/48 |
250,000 | $ | 264,917 | |||||
Bethel Senior Housing Revenue |
||||||||
(The Lodge at the Lakes at Stillwater Project) 5.00% 6/1/38 |
250,000 | 266,603 | ||||||
Center City Health Care Facilities Revenue |
||||||||
(Hazelden Betty Ford Foundation Project) 5.00% 11/1/24 |
600,000 | 701,442 | ||||||
Crookston Health Care Facilities Revenue |
||||||||
(RiverView Health Project) 5.00% 5/1/38 |
400,000 | 449,660 | ||||||
Dakota County Community Development Agency Senior Housing Revenue |
||||||||
(Walker Highview Hills Project) Series A 144A 5.00% 8/1/36 # |
480,000 | 502,709 | ||||||
Duluth Economic Development Authority |
||||||||
(Essentia Health Obligated Group) Series A 5.00% 2/15/37 |
750,000 | 906,630 | ||||||
(St. Lukes Hospital of Duluth Obligated Group) 5.75% 6/15/32 |
750,000 | 825,053 | ||||||
Glencoe Health Care Facilities Revenue |
||||||||
(Glencoe Regional Health Services Project) 4.00% 4/1/26 |
270,000 | 284,191 | ||||||
Hayward Health Care Facilities Revenue |
||||||||
(American Baptist Homes Midwest Obligated Group) 4.25% 8/1/24 |
568,334 | 588,169 | ||||||
Maple Grove Health Care Facilities Revenue |
||||||||
(Maple Grove Hospital Corporation) |
||||||||
4.00% 5/1/37 |
500,000 | 554,235 | ||||||
5.00% 5/1/28 |
1,000,000 | 1,237,140 | ||||||
(North Memorial Health Care) 5.00% 9/1/31 |
320,000 | 377,315 | ||||||
Minneapolis Health Care System Revenue |
||||||||
(Fairview Health Services) |
||||||||
Series A 5.00% 11/15/33 |
500,000 | 595,145 | ||||||
Series A 5.00% 11/15/34 |
500,000 | 593,735 | ||||||
Series A 5.00% 11/15/49 |
1,000,000 | 1,215,300 | ||||||
Minneapolis Senior Housing & Healthcare Revenue |
||||||||
(Ecumen-Abiitan Mill City Project) 5.00% 11/1/35 |
530,000 | 560,411 | ||||||
Minneapolis St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Allina Health System) Series A 5.00% 11/15/27 |
1,205,000 | 1,520,818 | ||||||
(Childrens Health Care) Series A 5.25% 8/15/25 |
1,000,000 | 1,036,380 |
41
Schedules of investments |
Delaware Tax-Free Minnesota Intermediate Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Minnesota Agricultural & Economic Development Board Revenue |
||||||||
(Essenthia Health Obligated Group) Series C-1 5.50% 2/15/25 (AGC) |
2,500,000 | $ | 2,548,125 | |||||
Rochester Health Care Facilities Revenue |
||||||||
(Mayo Clinic) Series C 4.50% 11/15/38 |
925,000 | 990,296 | ||||||
(Olmsted Medical Center Project) 5.125% 7/1/20 |
220,000 | 227,231 | ||||||
Sartell Health Care Facilities Revenue |
||||||||
(Country Manor Campus Project) Series A 5.00% 9/1/21 |
1,050,000 | 1,121,631 | ||||||
Sauk Rapids Health Care Housing Facilities Revenue |
||||||||
(Good Shepherd Lutheran Home) 5.125% 1/1/39 |
575,000 | 596,011 | ||||||
St. Cloud Health Care Revenue |
||||||||
(Centracare Health System Project) 5.00% 5/1/48 |
810,000 | 1,000,536 | ||||||
Unrefunded Balance 5.125% 5/1/30 |
360,000 | 368,968 | ||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Allina Health System) Unrefunded Balance Series A-2 5.25% 11/15/28 |
975,000 | 983,346 | ||||||
(Fairview Health Services) Series A 5.00% 11/15/47 |
275,000 | 332,118 | ||||||
(HealthPartners Obligated Group Project) |
||||||||
5.00% 7/1/32 |
1,000,000 | 1,164,720 | ||||||
5.00% 7/1/33 |
200,000 | 231,970 | ||||||
St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue |
||||||||
(Episcopal Homes Project) 5.00% 5/1/33 |
500,000 | 524,470 | ||||||
Wayzata Senior Housing Revenue |
||||||||
(Folkestone Senior Living Community) |
||||||||
5.00% 8/1/34 |
125,000 | 140,569 | ||||||
5.00% 8/1/35 |
150,000 | 168,312 | ||||||
West St. Paul, Housing and Health Care Facilities Revenue |
||||||||
(Walker Westwood Ridge Campus Project) 5.00% 11/1/37 |
500,000 | 542,070 | ||||||
Woodbury Housing & Redevelopment Authority Revenue |
||||||||
(St. Therese of Woodbury) 5.00% 12/1/34 |
500,000 | 536,100 | ||||||
|
|
|||||||
25,163,942 | ||||||||
|
|
|||||||
Housing Revenue Bond 0.38% |
||||||||
Northwest Multi-County Housing & Redevelopment Authority |
||||||||
(Pooled Housing Program) 5.50% 7/1/45 |
285,000 | 306,210 | ||||||
|
|
|||||||
306,210 | ||||||||
|
|
42
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Lease Revenue Bonds 5.19% |
||||||||
Minnesota General Fund Revenue Appropriations |
||||||||
Series A 5.00% 6/1/38 |
1,100,000 | $ | 1,247,807 | |||||
Series A 5.00% 6/1/43 |
715,000 | 809,466 | ||||||
Series B 5.00% 3/1/27 |
1,000,000 | 1,093,400 | ||||||
St. Paul Housing & Redevelopment Authority |
||||||||
(Minnesota Public Radio Project) 5.00% 12/1/25 |
1,000,000 | 1,042,080 | ||||||
|
|
|||||||
4,192,753 | ||||||||
|
|
|||||||
Local General Obligation Bonds 7.39% |
||||||||
Duluth Independent School District No. 709 |
||||||||
Series A 4.00% 2/1/28 |
250,000 | 282,735 | ||||||
Hennepin County |
||||||||
Series A 5.00% 12/1/36 |
1,500,000 | 1,856,670 | ||||||
Series A 5.00% 12/1/38 |
1,055,000 | 1,328,646 | ||||||
Series C 5.00% 12/1/30 |
1,500,000 | 1,885,005 | ||||||
St. Michael-Albertville Independent School District No. 885 |
||||||||
(School Building) Series A 5.00% 2/1/27 |
500,000 | 616,425 | ||||||
|
|
|||||||
5,969,481 | ||||||||
|
|
|||||||
Pre-Refunded/Escrowed to Maturity Bonds 7.08% |
||||||||
Anoka Housing Facilities Revenue |
||||||||
(Senior Homestead Anoka Project) Series B 6.875% 11/1/34-19§ |
750,000 | 764,213 | ||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(St. Catherine University) Series 7-Q 5.00% 10/1/22 |
425,000 | 473,335 | ||||||
Rochester Healthcare & Housing Revenue |
||||||||
(Samaritan Bethany Project) Series A 6.875% 12/1/29-19§ |
950,000 | 963,015 | ||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Allina Health System) Series A-2 5.25% 11/15/28-19§ |
1,025,000 | 1,033,313 | ||||||
St. Paul Housing & Redevelopment Authority Hospital Revenue |
||||||||
(Healtheast Care System Project) |
||||||||
Series A 5.00% 11/15/29-25§ |
165,000 | 202,115 | ||||||
Series A 5.00% 11/15/30-25§ |
120,000 | 146,993 | ||||||
University of Minnesota |
||||||||
Series A 5.00% 12/1/23-20§ |
1,000,000 | 1,048,460 | ||||||
Series D 5.00% 12/1/26-21§ |
1,000,000 | 1,087,040 | ||||||
|
|
|||||||
5,718,484 | ||||||||
|
|
43
Schedules of investments |
Delaware Tax-Free Minnesota Intermediate Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Special Tax Revenue Bonds 2.26% |
||||||||
Minneapolis Revenue |
||||||||
(YMCA Greater Twin Cities Project) 4.00% 6/1/27 |
100,000 | $ | 113,210 | |||||
Puerto Rico Sales Tax Financing Revenue (Restructured) |
||||||||
Series A1 4.55% 7/1/40 |
830,000 | 856,718 | ||||||
Series A-2 4.536% 7/1/53 |
378,000 | 384,131 | ||||||
St. Paul Sales Tax Revenue |
||||||||
Series G 5.00% 11/1/28 |
400,000 | 473,804 | ||||||
|
|
|||||||
1,827,863 | ||||||||
|
|
|||||||
State General Obligation Bonds 9.08% |
||||||||
Minnesota |
||||||||
Series A 5.00% 8/1/33 |
285,000 | 369,964 | ||||||
Series A 5.00% 8/1/34 |
1,000,000 | 1,293,910 | ||||||
Series D 5.00% 8/1/26 |
2,500,000 | 3,151,575 | ||||||
Series D 5.00% 8/1/27 |
1,500,000 | 1,885,545 | ||||||
Series E 5.00% 10/1/26 |
500,000 | 633,075 | ||||||
|
|
|||||||
7,334,069 | ||||||||
|
|
|||||||
Transportation Revenue Bonds 8.04% |
||||||||
Minneapolis St. Paul Metropolitan Airports Commission Revenue |
||||||||
(Senior) Series B 5.00% 1/1/22 (AMT) |
1,000,000 | 1,002,690 | ||||||
(Subordinate) |
||||||||
Series B 5.00% 1/1/26 |
710,000 | 772,977 | ||||||
Series B 5.00% 1/1/31 |
750,000 | 810,577 | ||||||
Series B 5.00% 1/1/44 (AMT) |
1,100,000 | 1,360,436 | ||||||
Series D 5.00% 1/1/22 (AMT) |
1,000,000 | 1,012,000 | ||||||
St. Paul Housing & Redevelopment Authority |
||||||||
(Parking Enterprise) |
||||||||
Series A 4.00% 8/1/26 |
450,000 | 517,631 | ||||||
Series A 4.00% 8/1/27 |
545,000 | 622,995 | ||||||
Series A 4.00% 8/1/28 |
350,000 | 398,727 | ||||||
|
|
|||||||
6,498,033 | ||||||||
|
|
|||||||
Water & Sewer Revenue Bonds 1.68% |
||||||||
Metropolitan Council General Obligation Wastewater Revenue (Minneapolis St. Paul Metropolitan Area) |
||||||||
Series C 4.00% 3/1/31 |
565,000 | 667,587 | ||||||
Series C 4.00% 3/1/32 |
585,000 | 687,890 | ||||||
|
|
|||||||
1,355,477 | ||||||||
|
|
|||||||
Total Municipal Bonds (cost $74,495,308) |
79,063,573 | |||||||
|
|
44
Principal amount° | Value (US $) | |||||||
Short-Term Investments 2.16% |
||||||||
Variable Rate Demand Notes 2.16%¤ |
||||||||
Minneapolis Health Care System Revenue (Fairview Health Services) |
||||||||
Series C |
||||||||
1.37% 11/15/48 (LOC Wells Fargo Bank N.A.) |
500,000 | $ | 500,000 | |||||
Minneapolis St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Allina Health System) Series B-1 1.37% 11/15/35 |
||||||||
(LOC JPMorgan Chase Bank N.A.) |
250,000 | 250,000 | ||||||
(Childrens Hospitals & Clinics) Series B 0.74% 8/15/25 |
||||||||
(AGM) (SPA US Bank N.A.) |
1,000,000 | 1,000,000 | ||||||
|
|
|||||||
Total Short-Term Investments (cost $1,750,000) |
1,750,000 | |||||||
|
|
|||||||
Total Value of Securities 100.01% |
$ | 80,813,573 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Aug. 31, 2019, the aggregate value of Rule 144A securities was $1,259,199, which represents 1.56% of the Funds net assets. See Note 8 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 Aug. 31, 2019. |
§ | 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 8 in Notes to financial statements. |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Aug. 31, 2019. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
45
Schedules of investments |
Delaware Tax-Free Minnesota Intermediate Fund
Summary of abbreviations:
AGC Insured by Assured Guaranty Corporation
AGM Insured by Assured Guaranty Municipal Corporation
AMT Subject to Alternative Minimum Tax
ICE Intercontinental Exchange
LIBOR London Interbank Offered Rate
LIBOR03M ICE LIBOR USD 3 Month
LIBOR06M ICE LIBOR USD 6 Month
LOC Letter of Credit
N.A. National Association
SPA Stand-by Purchase Agreement
USD US Dollar
See accompanying notes, which are an integral part of the financial statements.
46
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund | August 31, 2019 |
Principal amount° | Value (US $) | |||||||
Municipal Bonds 98.96% |
||||||||
Corporate Revenue Bond 0.98% |
||||||||
St. Paul Port Authority Solid Waste Disposal Revenue |
||||||||
(Gerdau St. Paul Steel Mill Project) |
||||||||
Series 7 144A 4.50% 10/1/37 (AMT)# |
1,920,000 | $ | 1,950,240 | |||||
|
|
|||||||
1,950,240 | ||||||||
|
|
|||||||
Education Revenue Bonds 19.80% |
||||||||
Bethel Charter School Lease Revenue |
||||||||
(Spectrum High School Project) Series A 4.00% 7/1/37 |
850,000 | 906,075 | ||||||
Brooklyn Park Charter School Lease Revenue |
||||||||
(Prairie Seeds Academy Project) Series A 5.00% 3/1/39 |
1,270,000 | 1,306,182 | ||||||
Cologne Charter School Lease Revenue |
||||||||
(Cologne Academy Project) |
||||||||
Series A 5.00% 7/1/34 |
250,000 | 268,457 | ||||||
Series A 5.00% 7/1/45 |
230,000 | 243,402 | ||||||
Deephaven Charter School Lease Revenue |
||||||||
(Eagle Ridge Academy Project) Series A 5.50% 7/1/50 |
1,000,000 | 1,099,980 | ||||||
Duluth Housing & Redevelopment Authority Revenue |
||||||||
(Duluth Public Schools Academy Project) Series A 5.00% 11/1/48 |
1,000,000 | 1,098,430 | ||||||
Forest Lake Charter School Lease Revenue Fund |
||||||||
(Lakes International Language Academy) |
||||||||
Series A 5.375% 8/1/50 |
660,000 | 737,801 | ||||||
Series A 5.75% 8/1/44 |
585,000 | 630,805 | ||||||
Ham Lake Charter School Lease Revenue |
||||||||
(Davinci Academy Project) |
||||||||
Series A 5.00% 7/1/36 |
235,000 | 251,880 | ||||||
Series A 5.00% 7/1/47 |
710,000 | 752,437 | ||||||
(Parnassus Preparatory School Project) Series A 5.00% 11/1/47 |
650,000 | 694,668 | ||||||
Hugo Charter School Lease Revenue |
||||||||
(Noble Academy Project) |
||||||||
Series A 5.00% 7/1/34 |
165,000 | 176,271 | ||||||
Series A 5.00% 7/1/44 |
495,000 | 522,948 | ||||||
Minneapolis Charter School Lease Revenue |
||||||||
(Hiawatha Academies Project) |
||||||||
Series A 5.00% 7/1/36 |
1,000,000 | 1,085,260 | ||||||
Series A 5.00% 7/1/47 |
800,000 | 858,936 | ||||||
Minneapolis Student Housing Revenue |
||||||||
(Riverton Community Housing Project) |
||||||||
144A 4.75% 8/1/43 # |
750,000 | 800,355 | ||||||
144A 5.00% 8/1/53 # |
570,000 | 610,618 | ||||||
5.25% 8/1/39 |
800,000 | 861,864 |
47
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Education Revenue Bonds (continued) |
||||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(Bethel University) 5.00% 5/1/47 |
1,500,000 | $ | 1,734,270 | |||||
(Carleton College) 4.00% 3/1/37 |
635,000 | 724,332 | ||||||
(Gustavus Adolphus College) 5.00% 10/1/47 |
1,000,000 | 1,183,160 | ||||||
(Minneapolis College of Art & Design) 4.00% 5/1/24 |
250,000 | 268,527 | ||||||
4.00% 5/1/25 |
200,000 | 214,364 | ||||||
4.00% 5/1/26 |
100,000 | 107,019 | ||||||
(St. Catherine University) |
||||||||
Series A 4.00% 10/1/37 |
580,000 | 636,115 | ||||||
Series A 5.00% 10/1/45 |
670,000 | 794,091 | ||||||
(St. Johns University) Series 8-I 5.00% 10/1/34 |
215,000 | 253,945 | ||||||
(St. Olaf College) |
||||||||
Series 8-G 5.00% 12/1/31 |
205,000 | 246,252 | ||||||
Series 8-G 5.00% 12/1/32 |
205,000 | 245,914 | ||||||
Series 8-N 4.00% 10/1/34 |
800,000 | 910,424 | ||||||
Series 8-N 4.00% 10/1/35 |
590,000 | 670,612 | ||||||
(St. Scholastica College) Series H 5.125% 12/1/40 |
750,000 | 757,230 | ||||||
(Trustees of the Hamline University of Minnesota) |
||||||||
Series B 5.00% 10/1/37 |
300,000 | 346,128 | ||||||
Series B 5.00% 10/1/39 |
770,000 | 884,876 | ||||||
(University of St. Thomas) |
||||||||
4.00% 10/1/41 |
1,000,000 | 1,159,340 | ||||||
4.00% 10/1/44 |
850,000 | 975,265 | ||||||
Series A 4.00% 10/1/35 |
400,000 | 455,380 | ||||||
Otsego Charter School Lease Revenue |
||||||||
(Kaleidoscope Charter School) Series A 5.00% 9/1/44 |
1,435,000 | 1,511,285 | ||||||
Rice County Educational Facilities Revenue |
||||||||
(Shattuck-St. Marys School) Series A 144A 5.00% 8/1/22 # |
770,000 | 815,137 | ||||||
St. Cloud Charter School Lease Revenue |
||||||||
(Stride Academy Project) Series A 5.00% 4/1/46 |
750,000 | 513,277 | ||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue |
||||||||
(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50 |
1,750,000 | 1,859,760 | ||||||
(Great River School Project) Series A 144A 5.50% 7/1/52 # |
265,000 | 286,839 | ||||||
(Hmong College Preparatory Academy Project) |
||||||||
Series A 5.75% 9/1/46 |
500,000 | 559,045 | ||||||
Series A 6.00% 9/1/51 |
500,000 | 565,020 |
48
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Education Revenue Bonds (continued) |
||||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue |
||||||||
(Nova Classical Academy Project) |
||||||||
Series A 4.00% 9/1/36 |
1,270,000 | $ | 1,350,505 | |||||
Series A 4.125% 9/1/47 |
500,000 | 526,815 | ||||||
(Twin Cities Academy Project) Series A 5.375% 7/1/50 |
1,500,000 | 1,616,640 | ||||||
University of Minnesota |
||||||||
Series A 5.00% 4/1/34 |
2,115,000 | 2,577,825 | ||||||
Series A 5.00% 9/1/40 |
900,000 | 1,117,188 | ||||||
Series A 5.00% 9/1/41 |
620,000 | 768,434 | ||||||
|
|
|||||||
39,541,383 | ||||||||
|
|
|||||||
Electric Revenue Bonds 7.78% |
||||||||
Central Minnesota Municipal Power Agency |
||||||||
(Brookings Twin Cities Transmission Project) 5.00% 1/1/42 |
1,500,000 | 1,620,150 | ||||||
Chaska Electric Revenue |
||||||||
Series A 5.00% 10/1/28 |
350,000 | 423,007 | ||||||
Hutchinson Utilities Commission Revenue |
||||||||
Series A 5.00% 12/1/22 |
490,000 | 550,373 | ||||||
Series A 5.00% 12/1/26 |
360,000 | 401,184 | ||||||
Minnesota Municipal Power Agency Electric Revenue |
||||||||
5.00% 10/1/27 |
165,000 | 194,877 | ||||||
5.00% 10/1/47 |
745,000 | 889,448 | ||||||
Series A 5.00% 10/1/28 |
500,000 | 590,150 | ||||||
Northern Municipal Power Agency Electric System Revenue |
||||||||
5.00% 1/1/26 |
500,000 | 611,525 | ||||||
5.00% 1/1/28 |
500,000 | 605,825 | ||||||
5.00% 1/1/29 |
470,000 | 567,276 | ||||||
5.00% 1/1/33 |
225,000 | 272,021 | ||||||
5.00% 1/1/34 |
200,000 | 241,262 | ||||||
Series A 5.00% 1/1/24 |
335,000 | 375,096 | ||||||
Puerto Rico Electric Power Authority |
||||||||
Series CCC 5.25% 7/1/27 |
410,000 | 329,025 | ||||||
Series WW 5.00% 7/1/28 |
585,000 | 468,000 | ||||||
Rochester Electric Utility Revenue |
||||||||
Series A 5.00% 12/1/34 |
450,000 | 551,052 | ||||||
Series A 5.00% 12/1/35 |
500,000 | 610,785 | ||||||
Series A 5.00% 12/1/36 |
520,000 | 633,682 | ||||||
Southern Minnesota Municipal Power Agency Revenue Series A 5.00% 1/1/41 |
400,000 | 471,772 |
49
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Electric Revenue Bonds (continued) |
||||||||
St. Paul Housing & Redevelopment Energy Revenue Series A 4.00% 10/1/32 |
800,000 | $ | 901,624 | |||||
Western Minnesota Municipal Power Agency Revenue |
||||||||
Series A 5.00% 1/1/30 |
500,000 | 572,500 | ||||||
Series A 5.00% 1/1/33 |
750,000 | 861,323 | ||||||
Series A 5.00% 1/1/34 |
450,000 | 516,483 | ||||||
Series A 5.00% 1/1/40 |
2,000,000 | 2,284,860 | ||||||
|
|
|||||||
15,543,300 | ||||||||
|
|
|||||||
Healthcare Revenue Bonds 33.97% |
||||||||
Anoka Healthcare & Housing Facilities Revenue |
||||||||
(The Homestead at Anoka Project) 5.125% 11/1/49 |
400,000 | 424,208 | ||||||
Anoka Housing & Redevelopment Authority Revenue |
||||||||
(Fridley Medical Center Project) Series A 6.875% 5/1/40 |
1,000,000 | 1,018,620 | ||||||
Apple Valley Senior Housing Revenue |
||||||||
(PHS Senior Housing, Inc. Orchard Path Project) |
||||||||
4.50% 9/1/53 |
840,000 | 880,421 | ||||||
5.00% 9/1/43 |
535,000 | 581,299 | ||||||
5.00% 9/1/58 |
1,175,000 | 1,269,752 | ||||||
Apple Valley Senior Living Revenue |
||||||||
(Senior Living LLC Project) |
||||||||
2nd Tier Series B 5.00% 1/1/47 |
560,000 | 570,399 | ||||||
4th Tier Series D 7.00% 1/1/37 |
515,000 | 532,479 | ||||||
4th Tier Series D 7.25% 1/1/52 |
1,500,000 | 1,563,660 | ||||||
Bethel Housing & Health Care Facilities Revenue |
||||||||
(Benedictine Health System - St. Peter Communities |
||||||||
Project) Series A 5.50% 12/1/48 |
1,280,000 | 1,356,378 | ||||||
Bethel Senior Housing Revenue |
||||||||
(The Lodge at the Lakes at Stillwater Project) 5.25% 6/1/58 |
725,000 | 771,799 | ||||||
Brooklyn Center Multifamily Housing Revenue |
||||||||
(Sanctuary at Brooklyn Center Project) Series A 5.50% 11/1/35 |
750,000 | 778,057 | ||||||
City of West St. Paul Minnesota |
||||||||
(Walker Westwood Ridge Campus Project) 5.00% 11/1/49 |
1,500,000 | 1,603,035 | ||||||
Cloquet Housing Facilities |
||||||||
(HADC Cloquet Project) Series A 5.00% 8/1/48 |
850,000 | 867,629 | ||||||
Crookston Health Care Facilities Revenue |
||||||||
(Riverview Health Project) 5.00% 5/1/51 |
1,025,000 | 1,131,118 | ||||||
Dakota County Community Development Agency Senior Housing Revenue |
||||||||
(Walker Highview Hills Project) Series A 144A 5.00% 8/1/51 # |
870,000 | 902,834 |
50
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Deephaven Housing & Healthcare Revenue |
||||||||
(St. Therese Senior Living Project) |
||||||||
Series A 5.00% 4/1/38 |
335,000 | $ | 343,800 | |||||
Series A 5.00% 4/1/40 |
315,000 | 323,064 | ||||||
Series A 5.00% 4/1/48 |
185,000 | 189,305 | ||||||
Duluth Economic Development Authority |
||||||||
(Essentia Health Obligated Group) Series A 5.00% 2/15/48 |
590,000 | 701,221 | ||||||
(St. Lukes Hospital of Duluth Obligated Group) |
||||||||
5.75% 6/15/32 |
750,000 | 825,053 | ||||||
6.00% 6/15/39 |
1,000,000 | 1,109,580 | ||||||
Glencoe Health Care Facilities Revenue |
||||||||
(Glencoe Regional Health Services Project) 4.00% 4/1/31 |
185,000 | 193,617 | ||||||
Hayward Health Care Facilities Revenue |
||||||||
(American Baptist Homes Midwest Obligated Group) 5.375% 8/1/34 |
750,000 | 789,367 | ||||||
(St. Johns Lutheran Home of Albert Lea Project) 5.375% 10/1/44 |
165,000 | 172,699 | ||||||
Maple Grove Health Care Facilities Revenue |
||||||||
(Maple Grove Hospital Corporation) |
||||||||
4.00% 5/1/37 |
1,155,000 | 1,280,283 | ||||||
5.00% 5/1/26 |
1,300,000 | 1,588,184 | ||||||
5.00% 5/1/29 |
500,000 | 616,270 | ||||||
(North Memorial Health Care) 5.00% 9/1/30 |
610,000 | 722,679 | ||||||
Maple Plain Senior Housing & Health Care Revenue |
||||||||
(Haven Homes Incorporate Project) 5.00% 7/1/49 |
1,000,000 | 1,070,570 | ||||||
Minneapolis Health Care System Revenue |
||||||||
(Fairview Health Services) |
||||||||
Series A 4.00% 11/15/48 |
1,000,000 | 1,118,780 | ||||||
Series A 5.00% 11/15/33 |
1,200,000 | 1,428,348 | ||||||
Series A 5.00% 11/15/34 |
500,000 | 593,735 | ||||||
Series A 5.00% 11/15/44 |
1,000,000 | 1,170,140 | ||||||
Series A 5.00% 11/15/49 |
1,450,000 | 1,762,185 | ||||||
Minneapolis Senior Housing & Healthcare Revenue |
||||||||
(Ecumen-Abiitan Mill City Project) 5.375% 11/1/50 |
1,700,000 | 1,796,509 | ||||||
Minneapolis St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Allina Health System) Series A 5.00% 11/15/29 |
415,000 | 519,862 | ||||||
Morris Health Care Facilities Revenue |
||||||||
(Farmington Health Services) |
||||||||
4.10% 8/1/44 |
500,000 | 504,430 | ||||||
4.20% 8/1/49 |
1,500,000 | 1,513,245 |
51
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
Oakdale Senior Housing |
||||||||
(Oak Meadows Project) 5.00% 4/1/34 |
500,000 | $ | 509,535 | |||||
Rochester Health Care & Housing Revenue |
||||||||
(The Homestead at Rochester Project) |
||||||||
Series A 5.25% 12/1/23 |
175,000 | 188,036 | ||||||
Series A 6.875% 12/1/48 |
800,000 | 878,376 | ||||||
Rochester Health Care Facilities Revenue |
||||||||
(Mayo Clinic) 4.00% 11/15/41 |
1,790,000 | 1,875,866 | ||||||
(Olmsted Medical Center Project) |
||||||||
5.00% 7/1/22 |
350,000 | 385,525 | ||||||
5.00% 7/1/27 |
245,000 | 276,159 | ||||||
5.00% 7/1/28 |
225,000 | 252,902 | ||||||
Sartell Health Care Facilities Revenue |
||||||||
(Country Manor Campus Project) Series A 5.25% 9/1/22 |
1,080,000 | 1,194,037 | ||||||
Sauk Rapids Health Care Housing Facilities Revenue |
||||||||
(Good Shepherd Lutheran Home) 5.125% 1/1/39 |
825,000 | 855,145 | ||||||
Shakopee Health Care Facilities Revenue |
||||||||
(St. Francis Regional Medical Center) |
||||||||
4.00% 9/1/31 |
130,000 | 140,876 | ||||||
5.00% 9/1/34 |
105,000 | 118,871 | ||||||
St. Cloud Health Care Revenue |
||||||||
(Centracare Health System Project) |
||||||||
4.00% 5/1/49 |
250,000 | 280,367 | ||||||
5.00% 5/1/48 |
3,900,000 | 4,817,397 | ||||||
Unrefunded Balance 5.125% 5/1/30 |
15,000 | 15,374 | ||||||
Series A 4.00% 5/1/37 |
1,440,000 | 1,600,790 | ||||||
Series A 5.00% 5/1/46 |
2,000,000 | 2,360,080 | ||||||
St. Joseph Senior Housing & Healthcare Revenue |
||||||||
(Woodcrest Country Manor Project) 5.00% 7/1/55 |
1,000,000 | 1,058,540 | ||||||
St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue (Fairview Health Services) |
||||||||
Series A 4.00% 11/15/43 |
645,000 | 719,594 | ||||||
Series A 5.00% 11/15/47 |
485,000 | 585,735 | ||||||
(HealthPartners Obligated Group Project) |
||||||||
Series A 4.00% 7/1/33 |
1,320,000 | 1,452,845 | ||||||
Series A 5.00% 7/1/29 |
1,000,000 | 1,186,310 | ||||||
Series A 5.00% 7/1/32 |
900,000 | 1,048,248 | ||||||
Series A 5.00% 7/1/33 |
1,540,000 | 1,786,169 |
52
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Healthcare Revenue Bonds (continued) |
||||||||
St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue |
||||||||
(Episcopal Homes Project) |
||||||||
5.125% 5/1/48 |
1,700,000 | $ | 1,752,139 | |||||
Series A 5.15% 11/1/42 |
775,000 | 782,145 | ||||||
St. Paul Housing & Redevelopment Authority Multifamily Housing Revenue |
||||||||
(Marian Center Project) Series A 5.375% 5/1/43 |
1,000,000 | 1,000,300 | ||||||
Twin Valley Congregate Housing Revenue |
||||||||
(Living Options Project) 5.95% 11/1/28 |
1,825,000 | 1,825,858 | ||||||
Victoria Health Care Facilities Revenue |
||||||||
(Augustana Emerald Care Project) 5.00% 8/1/39 |
1,500,000 | 1,545,615 | ||||||
Wayzata Senior Housing Revenue |
||||||||
(Folkestone Senior Living Community) |
||||||||
4.00% 8/1/38 |
250,000 | 261,828 | ||||||
4.00% 8/1/39 |
400,000 | 417,916 | ||||||
4.00% 8/1/44 |
350,000 | 364,578 | ||||||
5.00% 8/1/54 |
350,000 | 386,411 | ||||||
Woodbury Housing & Redevelopment Authority Revenue |
||||||||
(St. Therese of Woodbury) 5.25% 12/1/49 |
1,250,000 | 1,331,050 | ||||||
|
|
|||||||
67,839,231 | ||||||||
|
|
|||||||
Housing Revenue Bonds 1.81% |
||||||||
Bethel Senior Housing Revenue |
||||||||
(Birchwood Landing at the Lakes at Stillwater Project) 5.00% 5/1/54 |
1,000,000 | 1,060,300 | ||||||
Minneapolis Multifamily Housing Revenue |
||||||||
(Olson Townhomes Project) 6.00% 12/1/19 (AMT) |
310,000 | 310,688 | ||||||
Minneapolis St. Paul Housing Finance Board Single Family Mortgage-Backed Securities Program |
||||||||
(City Living Project) Series A-2 5.00% 12/1/38 (GNMA) (FNMA) (FHLMC) (AMT) |
11,235 | 11,242 | ||||||
Minnesota Housing Finance Agency State Appropriation |
||||||||
(Housing Infrastructure) Series C 5.00% 8/1/33 |
100,000 | 116,994 | ||||||
Northwest Multi-County Housing & Redevelopment Authority |
||||||||
(Pooled Housing Program) 5.50% 7/1/45 |
1,275,000 | 1,369,885 | ||||||
Stillwater Multifamily Housing Revenue |
||||||||
(Orleans Homes Project) 5.50% 2/1/42 (AMT) |
750,000 | 750,667 | ||||||
|
|
|||||||
3,619,776 | ||||||||
|
|
53
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Lease Revenue Bonds 2.39% |
||||||||
Minnesota General Fund Revenue Appropriations |
||||||||
Series A 5.00% 6/1/38 |
1,750,000 | $ | 1,985,147 | |||||
Series A 5.00% 6/1/43 |
1,000,000 | 1,132,120 | ||||||
Minnesota Housing Finance Agency State Appropriation |
||||||||
(Housing Infrastructure) Series C 5.00% 8/1/32 |
1,415,000 | 1,657,007 | ||||||
|
|
|||||||
4,774,274 | ||||||||
|
|
|||||||
Local General Obligation Bonds 7.50% |
||||||||
Chaska Independent School District No. 112 |
||||||||
(School Building) Series A 5.00% 2/1/28 |
1,000,000 | 1,229,870 | ||||||
Duluth General Obligation Entertainment Convention Center Improvement |
||||||||
Series A 5.00% 2/1/34 |
1,000,000 | 1,207,250 | ||||||
Duluth Independent School District No. 709 |
||||||||
Series A 4.00% 2/1/27 |
440,000 | 498,555 | ||||||
Series A 4.20% 3/1/34 |
750,000 | 806,857 | ||||||
Foley Independent School District No. 51 |
||||||||
(School Building) Series A 5.00% 2/1/21 |
1,105,000 | 1,108,326 | ||||||
Hennepin County |
||||||||
Series A 5.00% 12/1/26 |
750,000 | 954,120 | ||||||
Series A 5.00% 12/1/37 |
910,000 | 1,148,684 | ||||||
Series C 5.00% 12/1/37 |
2,500,000 | 3,086,400 | ||||||
Mahtomedi Independent School District No. 832 |
||||||||
(School Building) |
||||||||
Series A 5.00% 2/1/28 |
1,000,000 | 1,195,230 | ||||||
Series A 5.00% 2/1/29 |
1,000,000 | 1,194,070 | ||||||
Series A 5.00% 2/1/30 |
445,000 | 531,103 | ||||||
Series A 5.00% 2/1/31 |
1,000,000 | 1,192,920 | ||||||
Wayzata Independent School District No. 284 |
||||||||
(School Building) Series A 5.00% 2/1/28 |
650,000 | 826,937 | ||||||
|
|
|||||||
14,980,322 | ||||||||
|
|
|||||||
Pre-Refunded/Escrowed to Maturity Bonds 5.38% |
||||||||
Anoka Health Care Facilities Revenue |
||||||||
(The Homestead at Anoka Project) Series A 7.00% 11/1/46-19§ |
1,650,000 | 1,681,499 | ||||||
Deephaven Charter School Lease Revenue |
||||||||
(Eagle Ridge Academy Project) Series A 5.50% 7/1/43-23§ |
500,000 | 581,765 | ||||||
Minnesota Higher Education Facilities Authority Revenue |
||||||||
(St. Catherine University) |
||||||||
Series 7-Q 5.00% 10/1/25-22§ |
325,000 | 361,962 | ||||||
Series 7-Q 5.00% 10/1/26-22§ |
280,000 | 311,844 | ||||||
(University of St. Thomas) Series 7-A 5.00% 10/1/39-19§ |
1,000,000 | 1,002,900 |
54
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
Pre-Refunded/Escrowed to Maturity Bonds (continued) |
||||||||
Oak Park Heights Housing Revenue |
||||||||
(Oakgreen Commons Project) 7.00% 8/1/45-20§ |
1,500,000 | $ | 1,578,195 | |||||
Rochester Healthcare & Housing Revenue |
||||||||
(Samaritan Bethany Project) |
||||||||
Series A 6.875% 12/1/29-19§ |
1,000,000 | 1,013,700 | ||||||
Series A 7.375% 12/1/41-19§ |
375,000 | 380,550 | ||||||
St. Paul Housing & Redevelopment Authority Charter School Lease Revenue |
||||||||
(Nova Classical Academy Project) Series A 6.625% 9/1/42-21§ |
1,500,000 | 1,660,620 | ||||||
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue |
||||||||
(Healtheast Care System Project) |
||||||||
Series A 5.00% 11/15/29-25§ |
275,000 | 336,859 | ||||||
Series A 5.00% 11/15/30-25§ |
205,000 | 251,113 | ||||||
University of Minnesota |
||||||||
Series A 5.25% 12/1/28-20§ |
1,500,000 | 1,577,295 | ||||||
|
|
|||||||
10,738,302 | ||||||||
|
|
|||||||
Special Tax Revenue Bonds 5.02% |
||||||||
Minneapolis Revenue |
||||||||
(YMCA Greater Twin Cities Project) 4.00% 6/1/31 |
250,000 | 278,003 | ||||||
Minneapolis Tax Increment Revenue |
||||||||
(Grant Park Project) |
||||||||
4.00% 3/1/27 |
200,000 | 208,404 | ||||||
4.00% 3/1/30 |
260,000 | 269,433 | ||||||
(Village of St. Anthony Falls Project) |
||||||||
4.00% 3/1/24 |
700,000 | 725,627 | ||||||
4.00% 3/1/27 |
650,000 | 661,239 | ||||||
Puerto Rico Sales Tax Financing Revenue |
||||||||
(Capital Appreciation - Restructured) |
||||||||
Series A-1 5.375% 7/1/46 ^ |
3,635,000 | 976,143 | ||||||
Series A-1 5.625% 7/1/51 ^ |
4,145,000 | 805,539 | ||||||
(Restructured) |
||||||||
Series A-1 4.75% 7/1/53 |
2,005,000 | 2,060,759 | ||||||
Series A-1 5.00% 7/1/58 |
275,000 | 287,419 | ||||||
Series A-2 4.536% 7/1/53 |
3,000,000 | 3,048,660 | ||||||
St. Paul Sales Tax Revenue |
||||||||
Series G 5.00% 11/1/28 |
600,000 | 710,706 | ||||||
|
|
|||||||
10,031,932 | ||||||||
|
|
|||||||
State General Obligation Bonds 8.43% |
||||||||
Minnesota |
||||||||
Series A 5.00% 8/1/27 |
750,000 | 916,740 |
55
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund
Principal amount° | Value (US $) | |||||||
Municipal Bonds (continued) |
||||||||
State General Obligation Bonds (continued) |
||||||||
Minnesota |
||||||||
Series A 5.00% 8/1/29 |
1,000,000 | $ | 1,216,170 | |||||
Series A 5.00% 8/1/33 |
660,000 | 856,759 | ||||||
Series A 5.00% 10/1/33 |
2,000,000 | 2,542,500 | ||||||
Series A 5.00% 8/1/34 |
2,185,000 | 2,827,193 | ||||||
Series A 5.00% 8/1/38 |
1,000,000 | 1,278,990 | ||||||
Series A Unrefunded Balance 5.00% 10/1/24 |
985,000 | 1,064,391 | ||||||
Series D 5.00% 8/1/26 |
1,000,000 | 1,260,630 | ||||||
Series D 5.00% 8/1/27 |
1,000,000 | 1,257,030 | ||||||
Series E 5.00% 10/1/26 |
1,085,000 | 1,373,773 | ||||||
(Various Purposes) Series A 5.00% 8/1/32 |
1,915,000 | 2,244,495 | ||||||
|
|
|||||||
16,838,671 | ||||||||
|
|
|||||||
Transportation Revenue Bonds 4.40% |
||||||||
Minneapolis St. Paul Metropolitan Airports Commission Revenue |
||||||||
(Senior) |
||||||||
Series A 5.00% 1/1/32 |
1,245,000 | 1,538,185 | ||||||
Series C 5.00% 1/1/46 |
185,000 | 221,915 | ||||||
(Subordinate) |
||||||||
Series A 5.00% 1/1/22 |
1,000,000 | 1,052,860 | ||||||
Series A 5.00% 1/1/32 |
500,000 | 572,050 | ||||||
Series B 5.00% 1/1/29 |
2,130,000 | 2,310,198 | ||||||
Series B 5.00% 1/1/44 (AMT) |
1,000,000 | 1,236,760 | ||||||
Series B 5.00% 1/1/49 (AMT) |
1,500,000 | 1,846,500 | ||||||
|
|
|||||||
8,778,468 | ||||||||
|
|
|||||||
Water & Sewer Revenue Bonds 1.50% |
||||||||
Guam Government Waterworks Authority 5.00% 7/1/37 |
575,000 | 672,756 | ||||||
Metropolitan Council General Obligation Wastewater Revenue (Minneapolis St. Paul Metropolitan Area) |
||||||||
Series C 4.00% 3/1/31 |
965,000 | 1,140,215 | ||||||
Series C 4.00% 3/1/32 |
1,000,000 | 1,175,880 | ||||||
|
|
|||||||
2,988,851 | ||||||||
|
|
|||||||
Total Municipal Bonds (cost $186,145,079) |
197,624,750 | |||||||
|
|
56
Principal amount° | Value (US $) | |||||||
Short-Term Investments 1.59% |
||||||||
Variable Rate Demand Notes 1.59%¤ |
||||||||
Minneapolis St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue |
||||||||
(Childrens Hospitals and Clinics) |
||||||||
Series A 0.75% 8/15/34 (AGM) (SPA US Bank N.A.) |
800,000 | $ | 800,000 | |||||
Series A-1 0.75% 8/15/37 (AGM) (SPA US Bank N.A.) |
1,875,000 | 1,875,000 | ||||||
Series B 0.74% 8/15/25 (AGM) (SPA US Bank N.A.) |
300,000 | 300,000 | ||||||
Minneapolis St. Paul Housing & Redevelopment Authority |
||||||||
Health Care Revenue (Allina Health System) Series B-1 1.37% 11/15/35 (LOC JPMorgan Chase Bank N.A.) |
200,000 | 200,000 | ||||||
|
|
|||||||
Total Short-Term Investments (cost $3,175,000) |
3,175,000 | |||||||
|
|
|||||||
Total Value of Securities 100.55% |
$ | 200,799,750 | ||||||
|
|
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Aug. 31, 2019, the aggregate value of Rule 144A securities was $5,366,023, which represents 2.69% of the Funds net assets. See Note 8 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 Aug. 31, 2019. |
§ | 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 8 in Notes to financial statements. |
° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| Non-income producing security. Security is currently in default. |
^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGM Insured by Assured Guaranty Municipal Corporation
AMT Subject to Alternative Minimum Tax
FHLMC Federal Home Loan Mortgage Corporation collateral
FNMA Federal National Mortgage Association collateral
GNMA Government National Mortgage Association collateral
LOC Letter of Credit
57
Schedules of investments |
Delaware Minnesota High-Yield Municipal Bond Fund
Summary of abbreviations: (continued)
N.A. National Association
SPA Stand-by Purchase Agreement
USD US Dollar
See accompanying notes, which are an integral part of the financial statements.
58
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Statements of assets and liabilities
August 31, 2019
Delaware Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware High-Yield Bond Fund |
||||||||||
Assets: |
||||||||||||
Investments, at value1 |
$ | 612,816,947 | $ | 80,813,573 | $ | 200,799,750 | ||||||
Cash |
50,660 | 178,359 | 50,598 | |||||||||
Interest receivable |
6,919,317 | 816,741 | 2,224,509 | |||||||||
Receivable for fund shares sold |
476,137 | 479,544 | 48,647 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
620,263,061 | 82,288,217 | 203,123,504 | |||||||||
|
|
|
|
|
|
|||||||
Liabilities: |
||||||||||||
Payable for securities purchased |
33,367,436 | 1,358,984 | 3,081,235 | |||||||||
Distribution payable |
381,672 | 52,573 | 134,386 | |||||||||
Investment management fees payable to affiliates |
197,067 | 19,021 | 62,166 | |||||||||
Payable for fund shares redeemed |
128,195 | | 39,994 | |||||||||
Distribution fees payable to affiliates |
107,334 | 13,233 | 39,325 | |||||||||
Other accrued expenses |
104,445 | 39,309 | 61,309 | |||||||||
Dividend disbursing and transfer agent fees and expenses payable to affiliates |
4,885 | 672 | 1,645 | |||||||||
Trustees fees and expenses payable to affiliates |
4,289 | 594 | 1,432 | |||||||||
Accounting and administration expenses payable to affiliates |
2,211 | 597 | 970 | |||||||||
Legal fees payable to affiliates |
879 | 122 | 294 | |||||||||
Reports and statements to shareholders expenses payable to affiliates |
271 | 37 | 92 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
34,298,684 | 1,485,142 | 3,422,848 | |||||||||
|
|
|
|
|
|
|||||||
Total Net Assets |
$ | 585,964,377 | $ | 80,803,075 | $ | 199,700,656 | ||||||
|
|
|
|
|
|
|||||||
Net Assets Consist of: |
||||||||||||
Paid-in capital |
$ | 550,851,980 | $ | 76,335,861 | $ | 189,260,917 | ||||||
Total distributable earnings (loss) |
35,112,397 | 4,467,214 | 10,439,739 | |||||||||
|
|
|
|
|
|
|||||||
Total Net Assets |
$ | 585,964,377 | $ | 80,803,075 | $ | 199,700,656 | ||||||
|
|
|
|
|
|
60
Delaware Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware High-Yield Bond Fund |
||||||||||
Net Asset Value |
||||||||||||
Class A: |
||||||||||||
Net assets |
$ | 386,790,523 | $ | 55,917,764 | $ | 103,486,941 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par |
30,499,990 | 4,970,755 | 9,232,846 | |||||||||
Net asset value per share |
$ | 12.68 | $ | 11.25 | $ | 11.21 | ||||||
Sales charge |
4.50 | % | 2.75 | % | 4.50 | % | ||||||
Offering price per share, equal to net asset value per share/(1 sales charge) |
$ | 13.28 | $ | 11.57 | $ | 11.74 | ||||||
Class C: |
||||||||||||
Net assets |
$ | 29,932,934 | $ | 7,167,026 | $ | 21,058,429 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par |
2,352,720 | 635,845 | 1,875,123 | |||||||||
Net asset value per share |
$ | 12.72 | $ | 11.27 | $ | 11.23 | ||||||
Institutional Class: |
||||||||||||
Net assets |
$ | 169,240,920 | $ | 17,718,285 | $ | 75,155,286 | ||||||
Shares of beneficial interest outstanding, unlimited authorization, no par |
13,348,045 | 1,574,493 | 6,707,367 | |||||||||
Net asset value per share |
$ | 12.68 | $ | 11.25 | $ | 11.20 | ||||||
|
||||||||||||
1 Investments, at cost |
$ | 577,489,354 | $ | 76,245,308 | $ | 189,320,079 |
See accompanying notes, which are an integral part of the financial statements.
61
Year ended August 31, 2019
Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Bond Fund |
||||||||||
Investment Income: |
||||||||||||
Interest |
$ | 20,808,959 | $ | 2,772,625 | $ | 6,899,047 | ||||||
|
|
|
|
|
|
|||||||
Expenses: |
||||||||||||
Management fees |
3,006,000 | 386,722 | 981,891 | |||||||||
Distribution expensesClass A |
941,672 | 138,546 | 242,471 | |||||||||
Distribution expensesClass C |
309,709 | 77,004 | 203,445 | |||||||||
Dividend disbursing and transfer agent fees and expenses |
318,663 | 50,739 | 121,584 | |||||||||
Accounting and administration expenses |
139,913 | 55,309 | 73,368 | |||||||||
Registration fees |
71,809 | 23,975 | 20,945 | |||||||||
Reports and statements to shareholders expenses |
60,547 | 15,265 | 23,890 | |||||||||
Audit and tax fees |
46,673 | 46,673 | 46,673 | |||||||||
Legal fees |
39,441 | 5,969 | 11,158 | |||||||||
Trustees fees and expenses |
31,696 | 4,451 | 10,255 | |||||||||
Custodian fees |
14,487 | 2,757 | 6,163 | |||||||||
Other |
48,760 | 17,659 | 28,003 | |||||||||
|
|
|
|
|
|
|||||||
5,029,370 | 825,069 | 1,769,846 | ||||||||||
Less expenses waived |
(464,307 | ) | (175,598 | ) | (180,699 | ) | ||||||
Less waived distribution expensesClass A |
| (55,419 | ) | | ||||||||
Less expenses paid indirectly |
(6,565 | ) | (632 | ) | (982 | ) | ||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
4,558,498 | 593,420 | 1,588,165 | |||||||||
|
|
|
|
|
|
|||||||
Net Investment Income |
16,250,461 | 2,179,205 | 5,310,882 | |||||||||
|
|
|
|
|
|
|||||||
Net Realized and Unrealized Gain (Loss): |
||||||||||||
Net realized gain (loss) on investments |
422,779 | 5,373 | (149,752 | ) | ||||||||
Net change in unrealized appreciation (depreciation) of investments |
23,896,388 | 2,996,731 | 9,364,456 | |||||||||
|
|
|
|
|
|
|||||||
Net Realized and Unrealized Gain |
24,319,167 | 3,002,104 | 9,214,704 | |||||||||
|
|
|
|
|
|
|||||||
Net Increase in Net Assets Resulting from Operations |
$ | 40,569,628 | $ | 5,181,309 | $ | 14,525,586 | ||||||
|
|
|
|
|
|
See accompanying notes, which are an integral part of the financial statements.
62
This page intentionally left blank.
Statements of changes in net assets
Delaware Tax-Free Minnesota Fund
Year ended | ||||||||
8/31/19 | 8/31/18 | |||||||
Increase (Decrease) in Net Assets from Operations: |
||||||||
Net investment income |
$ | 16,250,461 | $ | 16,357,240 | ||||
Net realized gain |
422,779 | 299,568 | ||||||
Net change in unrealized appreciation (depreciation) |
23,896,388 | (15,406,873 | ) | |||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
40,569,628 | 1,249,935 | ||||||
|
|
|
|
|||||
Dividends and Distributions to Shareholders from: |
||||||||
Distributable earnings*: |
||||||||
Class A |
(11,013,173 | ) | (14,247,459 | ) | ||||
Class C |
(674,498 | ) | (1,274,213 | ) | ||||
Institutional Class |
(4,532,590 | ) | (3,638,192 | ) | ||||
|
|
|
|
|||||
(16,220,261 | ) | (19,159,864 | ) | |||||
|
|
|
|
|||||
Capital Share Transactions: |
||||||||
Proceeds from shares sold: |
||||||||
Class A |
34,266,180 | 38,349,082 | ||||||
Class C |
3,098,448 | 2,636,660 | ||||||
Institutional Class |
83,152,024 | 54,835,728 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: |
||||||||
Class A |
9,748,901 | 12,235,255 | ||||||
Class C |
653,678 | 1,195,247 | ||||||
Institutional Class |
3,221,296 | 3,287,427 | ||||||
|
|
|
|
|||||
134,140,527 | 112,539,399 | |||||||
|
|
|
|
64
Year ended | ||||||||
8/31/19 | 8/31/18 | |||||||
Capital Share Transactions (continued): |
||||||||
Cost of shares redeemed: |
||||||||
Class A |
$ | (63,834,709 | ) | $ | (70,209,949 | ) | ||
Class C |
(10,695,643 | ) | (17,670,338 | ) | ||||
Institutional Class |
(44,007,882 | ) | (24,104,373 | ) | ||||
|
|
|
|
|||||
(118,538,234 | ) | (111,984,660 | ) | |||||
|
|
|
|
|||||
Increase in net assets derived from capital share transactions |
15,602,293 | 554,739 | ||||||
|
|
|
|
|||||
Net Increase (Decrease) in Net Assets |
39,951,660 | (17,355,190 | ) | |||||
Net Assets: |
||||||||
Beginning of year |
546,012,717 | 563,367,907 | ||||||
|
|
|
|
|||||
End of year1 |
$ | 585,964,377 | $ | 546,012,717 | ||||
|
|
|
|
1 | Net Assets End of year includes distributions in excess of net investment income of $240,388 in 2018. The Securities and Exchange Commission eliminated the requirement to disclose undistributed (distributions in excess of) net investment income in 2018. |
* | For the year ended Aug. 31, 2019, the Fund has adopted amendments to Regulation S-X (see Note 10 in Notes to financial statements). For the year ended Aug. 31, 2018, the dividends and distributions to shareholders were as follows: |
Class A | Class C | Institutional Class |
||||||||||
Dividends from net investment income |
$ | (12,134,393 | ) | $ | (1,024,249 | ) | $ | (3,183,679 | ) | |||
Distributions from net realized gains |
(2,113,066 | ) | (249,964 | ) | (454,513 | ) |
See accompanying notes, which are an integral part of the financial statements.
65
Statements of changes in net assets
Delaware Tax-Free Minnesota Intermediate Fund
Year ended | ||||||||
8/31/19 | 8/31/18 | |||||||
Increase (Decrease) in Net Assets from Operations: |
||||||||
Net investment income |
$ | 2,179,205 | $ | 2,428,417 | ||||
Net realized gain |
5,373 | 72,266 | ||||||
Net change in unrealized appreciation (depreciation) |
2,996,731 | (2,687,546 | ) | |||||
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from operations |
5,181,309 | (186,863 | ) | |||||
|
|
|
|
|||||
Dividends and Distributions to Shareholders from: |
||||||||
Distributable earnings*: |
||||||||
Class A |
(1,593,527 | ) | (2,031,660 | ) | ||||
Class C |
(156,332 | ) | (249,902 | ) | ||||
Institutional Class |
(428,375 | ) | (518,897 | ) | ||||
|
|
|
|
|||||
(2,178,234 | ) | (2,800,459 | ) | |||||
|
|
|
|
|||||
Capital Share Transactions: |
||||||||
Proceeds from shares sold: |
||||||||
Class A |
5,671,277 | 4,764,864 | ||||||
Class C |
898,626 | 670,790 | ||||||
Institutional Class |
8,405,771 | 5,446,733 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: |
||||||||
Class A |
1,357,246 | 1,731,184 | ||||||
Class C |
149,449 | 237,000 | ||||||
Institutional Class |
397,172 | 499,540 | ||||||
|
|
|
|
|||||
16,879,541 | 13,350,111 | |||||||
|
|
|
|
66
Year ended | ||||||||
8/31/19 | 8/31/18 | |||||||
Capital Share Transactions (continued): |
||||||||
Cost of shares redeemed: |
||||||||
Class A |
$ | (12,485,742 | ) | $ | (14,067,022 | ) | ||
Class C |
(2,719,349 | ) | (3,881,824 | ) | ||||
Institutional Class |
(3,186,459 | ) | (12,720,892 | ) | ||||
|
|
|
|
|||||
(18,391,550 | ) | (30,669,738 | ) | |||||
|
|
|
|
|||||
Decrease in net assets derived from capital share transactions |
(1,512,009 | ) | (17,319,627 | ) | ||||
|
|
|
|
|||||
Net Increase (Decrease) in Net Assets |
1,491,066 | (20,306,949 | ) | |||||
Net Assets: |
||||||||
Beginning of year |
79,312,009 | 99,618,958 | ||||||
|
|
|
|
|||||
End of year1 |
$ | 80,803,075 | $ | 79,312,009 | ||||
|
|
|
|
1 | Net Assets End of year includes distributions in excess of net investment income of $4,190 in 2018. The Securities and Exchange Commission eliminated the requirement to disclose undistributed (distributions in excess of) net investment income in 2018. |
* | For the year ended Aug. 31, 2019, the Fund has adopted amendments to Regulation S-X (see Note 10 in Notes to financial statements). For the year ended Aug. 31, 2018, the dividends and distributions to shareholders were as follows: |
Class A | Class C | Institutional Class |
||||||||||
Dividends from net investment income |
$ | (1,771,652 | ) | $ | (205,693 | ) | $ | (450,722 | ) | |||
Distributions from net realized gain |
(260,008 | ) | (44,209 | ) | (68,175 | ) |
See accompanying notes, which are an integral part of the financial statements.
67
Statements of changes in net assets
Delaware Minnesota High-Yield Municipal Bond Fund
Year ended | ||||||||
8/31/19 | 8/31/18 | |||||||
Increase (Decrease) in Net Assets from Operations: |
||||||||
Net investment income |
$ | 5,310,882 | $ | 5,142,414 | ||||
Net realized loss |
(149,752 | ) | (71,151 | ) | ||||
Net change in unrealized appreciation (depreciation) |
9,364,456 | (3,485,137 | ) | |||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
14,525,586 | 1,586,126 | ||||||
|
|
|
|
|||||
Dividends and Distributions to Shareholders from: |
||||||||
Distributable earnings*: |
||||||||
Class A |
(2,884,919 | ) | (2,914,141 | ) | ||||
Class C |
(452,855 | ) | (667,362 | ) | ||||
Institutional Class |
(1,963,896 | ) | (1,591,025 | ) | ||||
|
|
|
|
|||||
(5,301,670 | ) | (5,172,528 | ) | |||||
|
|
|
|
|||||
Capital Share Transactions: |
||||||||
Proceeds from shares sold: |
||||||||
Class A |
11,808,073 | 16,270,537 | ||||||
Class C |
3,143,949 | 3,339,629 | ||||||
Institutional Class |
31,389,740 | 24,537,706 | ||||||
Net asset value of shares issued upon reinvestment of dividends and distributions: |
||||||||
Class A |
2,586,210 | 2,338,287 | ||||||
Class C |
420,887 | 598,928 | ||||||
Institutional Class |
1,877,843 | 1,536,871 | ||||||
|
|
|
|
|||||
51,226,702 | 48,621,958 | |||||||
|
|
|
|
68
Year ended | ||||||||
8/31/19 | 8/31/18 | |||||||
Capital Share Transactions (continued): |
||||||||
Cost of shares redeemed: |
||||||||
Class A |
$ | (14,747,115 | ) | $ | (16,152,757 | ) | ||
Class C |
(5,154,694 | ) | (13,869,963 | ) | ||||
Institutional Class |
(14,980,335 | ) | (16,399,941 | ) | ||||
|
|
|
|
|||||
(34,882,144 | ) | (46,422,661 | ) | |||||
|
|
|
|
|||||
Increase in net assets derived from capital share transactions |
16,344,558 | 2,199,297 | ||||||
|
|
|
|
|||||
Net Increase (Decrease) in Net Assets |
25,568,474 | (1,387,105 | ) | |||||
Net Assets: |
||||||||
Beginning of year |
174,132,182 | 175,519,287 | ||||||
|
|
|
|
|||||
End of year1 |
$ | 199,700,656 | $ | 174,132,182 | ||||
|
|
|
|
1 | Net Assets - There was no undistributed net investment income in 2018. The Securities and Exchange Commission eliminated the requirement to disclose undistributed (distributions in excess of) net investment income in 2018. |
* | For the year ended Aug. 31, 2019, the Fund has adopted amendments to Regulation S-X (see Note 10 in Notes to financial statements). For the year ended Aug. 31, 2018, the dividends and distributions to shareholders were as follows: |
Class A | Class C | Institutional Class |
||||||||||
Dividends from net investment income |
$ | (2,914,141 | ) | $ | (667,362 | ) | $ | (1,591,025 | ) |
See accompanying notes, which are an integral part of the financial statements.
69
Delaware Tax-Free Minnesota Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
70
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.60 | $ | 12.67 | |||||||||||||||||||
0.36 | 0.37 | 0.38 | 0.41 | 0.44 | ||||||||||||||||||||||||
0.54 | (0.34 | ) | (0.32 | ) | 0.28 | (0.06 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
0.90 | 0.03 | 0.06 | 0.69 | 0.38 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
(0.36 | ) | (0.37 | ) | (0.39 | ) | (0.42 | ) | (0.45 | ) | |||||||||||||||||||
| (0.06 | ) | | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(0.36 | ) | (0.43 | ) | (0.39 | ) | (0.42 | ) | (0.45 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$ | 12.68 | $ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.60 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
7.54% | 0.26% | 0.49% | 5.52% | 3.02% | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
$ | 386,790 | $ | 390,477 | $ | 423,497 | $ | 481,066 | $ | 479,275 | |||||||||||||||||||
0.85% | 0.85% | 0.85% | 0.85% | 0.87% | ||||||||||||||||||||||||
0.93% | 0.94% | 0.95% | 0.95% | 0.96% | ||||||||||||||||||||||||
2.92% | 2.99% | 3.08% | 3.25% | 3.51% | ||||||||||||||||||||||||
2.84% | 2.90% | 2.98% | 3.15% | 3.42% | ||||||||||||||||||||||||
13% | 16% | 17% | 15% | 11% |
71
Financial highlights
Delaware Tax-Free Minnesota Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
72
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 12.18 | $ | 12.58 | $ | 12.91 | $ | 12.64 | $ | 12.71 | |||||||||||||||||||
0.27 | 0.28 | 0.29 | 0.32 | 0.35 | ||||||||||||||||||||||||
0.54 | (0.34 | ) | (0.33 | ) | 0.27 | (0.07 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
0.81 | (0.06 | ) | (0.04 | ) | 0.59 | 0.28 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(0.27 | ) | (0.28 | ) | (0.29 | ) | (0.32 | ) | (0.35 | ) | |||||||||||||||||||
| (0.06 | ) | | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(0.27 | ) | (0.34 | ) | (0.29 | ) | (0.32 | ) | (0.35 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$ | 12.72 | $ | 12.18 | $ | 12.58 | $ | 12.91 | $ | 12.64 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
6.73% | (0.49% | ) | (0.25% | ) | 4.73% | 2.25% | ||||||||||||||||||||||
$ | 29,933 | $ | 35,642 | $ | 51,045 | $ | 53,502 | $ | 45,393 | |||||||||||||||||||
1.60% | 1.60% | 1.60% | 1.60% | 1.62% | ||||||||||||||||||||||||
1.68% | 1.69% | 1.70% | 1.70% | 1.71% | ||||||||||||||||||||||||
2.17% | 2.24% | 2.33% | 2.50% | 2.76% | ||||||||||||||||||||||||
2.09% | 2.15% | 2.23% | 2.40% | 2.67% | ||||||||||||||||||||||||
13% | 16% | 17% | 15% | 11% |
73
Financial highlights
Delaware Tax-Free Minnesota Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
74
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.59 | $ | 12.66 | |||||||||||||||||||
0.39 | 0.40 | 0.41 | 0.45 | 0.48 | ||||||||||||||||||||||||
0.54 | (0.34 | ) | (0.32 | ) | 0.28 | (0.07 | ) | |||||||||||||||||||||
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0.93 | 0.06 | 0.09 | 0.73 | 0.41 | ||||||||||||||||||||||||
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(0.39 | ) | (0.40 | ) | (0.42 | ) | (0.45 | ) | (0.48 | ) | |||||||||||||||||||
| (0.06 | ) | | | | |||||||||||||||||||||||
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(0.39 | ) | (0.46 | ) | (0.42 | ) | (0.45 | ) | (0.48 | ) | |||||||||||||||||||
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$ | 12.68 | $ | 12.14 | $ | 12.54 | $ | 12.87 | $ | 12.59 | |||||||||||||||||||
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7.81% | 0.51% | 0.75% | 5.87% | 3.27% | ||||||||||||||||||||||||
$ | 169,241 | $ | 119,894 | $ | 88,826 | $ | 53,133 | $ | 32,084 | |||||||||||||||||||
0.60% | 0.60% | 0.60% | 0.60% | 0.62% | ||||||||||||||||||||||||
0.68% | 0.69% | 0.70% | 0.70% | 0.71% | ||||||||||||||||||||||||
3.17% | 3.24% | 3.33% | 3.50% | 3.76% | ||||||||||||||||||||||||
3.09% | 3.15% | 3.23% | 3.40% | 3.67% | ||||||||||||||||||||||||
13% | 16% | 17% | 15% | 11% |
75
Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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 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.
76
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 10.82 | $ | 11.17 | $ | 11.44 | $ | 11.22 | $ | 11.32 | |||||||||||||||||||
0.31 | 0.30 | 0.31 | 0.33 | 0.34 | ||||||||||||||||||||||||
0.43 | (0.31 | ) | (0.25 | ) | 0.22 | (0.10 | ) | |||||||||||||||||||||
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0.74 | (0.01 | ) | 0.06 | 0.55 | 0.24 | |||||||||||||||||||||||
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(0.31 | ) | (0.30 | ) | (0.31 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||||||||
| (0.04 | ) | (0.02 | ) | | | ||||||||||||||||||||||
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(0.31 | ) | (0.34 | ) | (0.33 | ) | (0.33 | ) | (0.34 | ) | |||||||||||||||||||
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$ | 11.25 | $ | 10.82 | $ | 11.17 | $ | 11.44 | $ | 11.22 | |||||||||||||||||||
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7.00% | (0.01%) | 0.55% | 4.98% | 2.12% | ||||||||||||||||||||||||
$ | 55,918 | $ | 59,284 | $ | 68,934 | $ | 79,730 | $ | 84,663 | |||||||||||||||||||
0.71% | 0.79% | 0.84% | 0.84% | 0.85% | ||||||||||||||||||||||||
1.04% | 1.00% | 0.99% | 0.97% | 0.98% | ||||||||||||||||||||||||
2.87% | 2.77% | 2.79% | 2.92% | 2.98% | ||||||||||||||||||||||||
2.54% | 2.56% | 2.64% | 2.79% | 2.85% | ||||||||||||||||||||||||
19% | 17% | 22% | 14% | 14% |
77
Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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. Performance would have been lower had the waivers not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
78
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 10.84 | $ | 11.19 | $ | 11.47 | $ | 11.24 | $ | 11.35 | |||||||||||||||||||
0.22 | 0.21 | 0.22 | 0.24 | 0.24 | ||||||||||||||||||||||||
0.43 | (0.31 | ) | (0.26 | ) | 0.23 | (0.11 | ) | |||||||||||||||||||||
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0.65 | (0.10 | ) | (0.04 | ) | 0.47 | 0.13 | ||||||||||||||||||||||
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(0.22 | ) | (0.21 | ) | (0.22 | ) | (0.24 | ) | (0.24 | ) | |||||||||||||||||||
| (0.04 | ) | (0.02 | ) | | | ||||||||||||||||||||||
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(0.22 | ) | (0.25 | ) | (0.24 | ) | (0.24 | ) | (0.24 | ) | |||||||||||||||||||
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$ | 11.27 | $ | 10.84 | $ | 11.19 | $ | 11.47 | $ | 11.24 | |||||||||||||||||||
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6.09% | (0.86%) | (0.39%) | 4.17% | 1.16% | ||||||||||||||||||||||||
$ | 7,167 | $ | 8,558 | $ | 11,885 | $ | 13,315 | $ | 11,740 | |||||||||||||||||||
1.56% | 1.64% | 1.69% | 1.69% | 1.70% | ||||||||||||||||||||||||
1.79% | 1.75% | 1.74% | 1.72% | 1.73% | ||||||||||||||||||||||||
2.02% | 1.92% | 1.94% | 2.07% | 2.13% | ||||||||||||||||||||||||
1.79% | 1.81% | 1.89% | 2.04% | 2.10% | ||||||||||||||||||||||||
19% | 17% | 22% | 14% | 14% |
79
Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
80
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 10.83 | $ | 11.17 | $ | 11.45 | $ | 11.22 | $ | 11.33 | |||||||||||||||||||
0.33 | 0.32 | 0.33 | 0.35 | 0.35 | ||||||||||||||||||||||||
0.42 | (0.30 | ) | (0.26 | ) | 0.23 | (0.11 | ) | |||||||||||||||||||||
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0.75 | 0.02 | 0.07 | 0.58 | 0.24 | ||||||||||||||||||||||||
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(0.33 | ) | (0.32 | ) | (0.33 | ) | (0.35 | ) | (0.35 | ) | |||||||||||||||||||
| (0.04 | ) | (0.02 | ) | | | ||||||||||||||||||||||
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(0.33 | ) | (0.36 | ) | (0.35 | ) | (0.35 | ) | (0.35 | ) | |||||||||||||||||||
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$ | 11.25 | $ | 10.83 | $ | 11.17 | $ | 11.45 | $ | 11.22 | |||||||||||||||||||
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7.06% | 0.23% | 0.61% | 5.22% | 2.18% | ||||||||||||||||||||||||
$ | 17,718 | $ | 11,470 | $ | 18,800 | $ | 12,694 | $ | 4,402 | |||||||||||||||||||
0.56% | 0.64% | 0.69% | 0.69% | 0.70% | ||||||||||||||||||||||||
0.79% | 0.75% | 0.74% | 0.72% | 0.73% | ||||||||||||||||||||||||
3.02% | 2.92% | 2.94% | 3.07% | 3.13% | ||||||||||||||||||||||||
2.79% | 2.81% | 2.89% | 3.04% | 3.10% | ||||||||||||||||||||||||
19% | 17% | 22% | 14% | 14% |
81
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
82
Year ended | ||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||
$ | 10.66 | $ | 10.88 | $ | 11.13 | $ | 10.84 | $ | 10.88 | |||||||||||||||||||
0.32 | 0.32 | 0.33 | 0.36 | 0.38 | ||||||||||||||||||||||||
0.55 | (0.22 | ) | (0.25 | ) | 0.29 | (0.04 | ) | |||||||||||||||||||||
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0.87 | 0.10 | 0.08 | 0.65 | 0.34 | ||||||||||||||||||||||||
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(0.32 | ) | (0.32 | ) | (0.33 | ) | (0.36 | ) | (0.38 | ) | |||||||||||||||||||
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(0.32 | ) | (0.32 | ) | (0.33 | ) | (0.36 | ) | (0.38 | ) | |||||||||||||||||||
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$ | 11.21 | $ | 10.66 | $ | 10.88 | $ | 11.13 | $ | 10.84 | |||||||||||||||||||
8.33 | % | 0.95 | % | 0.84 | % | 6.12 | % | 3.20 | % | |||||||||||||||||||
$ | 103,487 | $ | 98,980 | $ | 98,491 | $ | 121,168 | $ | 122,618 | |||||||||||||||||||
0.89% | 0.89% | 0.89% | 0.89% | 0.91% | ||||||||||||||||||||||||
0.99% | 0.99% | 0.99% | 0.98% | 1.01% | ||||||||||||||||||||||||
2.97% | 2.98% | 3.08% | 3.23% | 3.52% | ||||||||||||||||||||||||
2.87% | 2.88% | 2.98% | 3.14% | 3.42% | ||||||||||||||||||||||||
12% | 14% | 19% | 15% | 16% |
83
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
84
Year ended | ||||||||||||||||||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||||||
$ | 10.68 | $ | 10.90 | $ | 11.15 | $ | 10.87 | $ | 10.90 | |||||||||||||||||||||||||||||
0.24 | 0.24 | 0.25 | 0.27 | 0.30 | ||||||||||||||||||||||||||||||||||
0.55 | (0.22 | ) | (0.25 | ) | 0.29 | (0.03 | ) | |||||||||||||||||||||||||||||||
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0.79 | 0.02 | | 0.56 | 0.27 | ||||||||||||||||||||||||||||||||||
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(0.24 | ) | (0.24 | ) | (0.25 | ) | (0.28 | ) | (0.30 | ) | |||||||||||||||||||||||||||||
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(0.24 | ) | (0.24 | ) | (0.25 | ) | (0.28 | ) | (0.30 | ) | |||||||||||||||||||||||||||||
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$ | 11.23 | $ | 10.68 | $ | 10.90 | $ | 11.15 | $ | 10.87 | |||||||||||||||||||||||||||||
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7.51% | 0.19% | 0.09% | 5.22% | 2.53% | ||||||||||||||||||||||||||||||||||
$ | 21,059 | $ | 21,651 | $ | 32,223 | $ | 35,751 | $ | 32,174 | |||||||||||||||||||||||||||||
1.64% | 1.64% | 1.64% | 1.64% | 1.66% | ||||||||||||||||||||||||||||||||||
1.74% | 1.74% | 1.74% | 1.73% | 1.76% | ||||||||||||||||||||||||||||||||||
2.22% | 2.23% | 2.33% | 2.48% | 2.77% | ||||||||||||||||||||||||||||||||||
2.12% | 2.13% | 2.23% | 2.39% | 2.67% | ||||||||||||||||||||||||||||||||||
12% | 14% | 19% | 15% | 16% |
85
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment 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 | The average shares outstanding have been applied for per share information. |
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.
86
Year ended |
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8/31/19 | 8/31/18 | 8/31/17 | 8/31/16 | 8/31/15 | ||||||||||||||||||||||||||||||||||
$ | 10.66 | $ | 10.87 | $ | 11.12 | $ | 10.84 | $ | 10.88 | |||||||||||||||||||||||||||||
0.35 | 0.35 | 0.36 | 0.38 | 0.41 | ||||||||||||||||||||||||||||||||||
0.54 | (0.21 | ) | (0.25 | ) | 0.29 | (0.04 | ) | |||||||||||||||||||||||||||||||
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0.89 | 0.14 | 0.11 | 0.67 | 0.37 | ||||||||||||||||||||||||||||||||||
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(0.35 | ) | (0.35 | ) | (0.36 | ) | (0.39 | ) | (0.41 | ) | |||||||||||||||||||||||||||||
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(0.35 | ) | (0.35 | ) | (0.36 | ) | (0.39 | ) | (0.41 | ) | |||||||||||||||||||||||||||||
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$ | 11.20 | $ | 10.66 | $ | 10.87 | $ | 11.12 | $ | 10.84 | |||||||||||||||||||||||||||||
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8.50% | 1.30% | 1.09% | 6.28% | 3.46% | ||||||||||||||||||||||||||||||||||
$ | 75,155 | $ | 53,501 | $ | 44,805 | $ | 31,206 | $ | 14,841 | |||||||||||||||||||||||||||||
0.64% | 0.64% | 0.64% | 0.64% | 0.66% | ||||||||||||||||||||||||||||||||||
0.74% | 0.74% | 0.74% | 0.73% | 0.76% | ||||||||||||||||||||||||||||||||||
3.22% | 3.23% | 3.33% | 3.48% | 3.77% | ||||||||||||||||||||||||||||||||||
3.12% | 3.13% | 3.23% | 3.39% | 3.67% | ||||||||||||||||||||||||||||||||||
12% | 14% | 19% | 15% | 16% |
87
|
||
Delaware Funds® by Macquarie Minnesota municipal bond funds |
August 31, 2019 |
Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund. Voyageur Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Fund. Voyageur Intermediate Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Intermediate Fund. Voyageur Mutual Funds, Voyageur Tax-Free Funds, and Voyageur Intermediate Tax-Free 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 Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund (each a Fund, or collectively, the Funds). Each Fund 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 Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 2.75% for Delaware Tax-Free Minnesota Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) instead of a front-end sales charge of 1.00%, which will be incurred if redeemed during the first year, and 0.50% during the second year for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 0.75% for Delaware Tax-Free Minnesota Intermediate Fund, if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class C shares are sold with a CDSC of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
The investment objective of Delaware Tax-Free Minnesota Fund is to seek as high a level of current income exempt from federal income tax and from Minnesota state personal income taxes as is consistent with preservation of capital.
The investment objective of Delaware Tax-Free Minnesota Intermediate Fund is to seek to provide investors with preservation of capital and, secondarily, current income exempt from federal income tax and Minnesota state personal income taxes, by maintaining a dollar-weighted average effective portfolio maturity of 10 years or less.
The investment objective of Delaware Minnesota High-Yield Municipal Bond Fund is to seek a high level of current income exempt from federal income tax and from Minnesota state personal income taxes, primarily through investment in medium- and lower-grade municipal obligations.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well
88
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 Trusts Board of Trustees (each, a Board, or collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.
Federal Income Taxes No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Funds tax returns to determine whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Funds tax positions taken or expected to be taken on each Funds federal income tax returns through the year ended Aug. 31, 2019 and for all open tax years (years ended Aug. 31, 2016Aug. 31, 2018), and has concluded that no provision for federal income tax is required in each Funds financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in Other expenses on the Statements of operations. During the year ended Aug. 31, 2019, the Funds did not incur any interest or tax penalties.
Class Accounting Investment income and common expenses are allocated to the various classes of each Fund on the basis of settled shares of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may
89
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond funds
1. Significant Accounting Policies (continued)
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 custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the Statements of operations under Custodian fees with the corresponding expenses offset included under Less expenses paid indirectly. For the year ended Aug. 31, 2019, each Fund earned the following amounts under this arrangement:
Delaware Tax-Free | Delaware Minnesota | |||||
Delaware Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
$6,154 | $557 | $822 |
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 Aug. 31, 2019, each Fund earned the following amounts under this arrangement:
Delaware Tax-Free | Delaware Minnesota | |||||
Delaware Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
$411 | $75 | $160 |
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 Funds average daily net assets as follows:
Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield Municipal Bond Fund | ||||
On the first $500 million |
0.550% | 0.500% | 0.550% | |||
On the next $500 million |
0.500% | 0.475% | 0.500% | |||
On the next $1.5 billion |
0.450% | 0.450% | 0.450% | |||
In excess of $2.5 billion |
0.425% | 0.425% | 0.425% |
DMC has contractually agreed to waive that portion, if any, of its management fees and/or pay/reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any distribution and service (12b-1) fees, taxes, interest, acquired fund fees and expenses, inverse floater program expenses, short sale, dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), do not exceed the
90
following percentage of each Funds average daily net assets from Sept. 1, 2018 through Aug. 31, 2019.* These waivers and reimbursements apply only to expenses paid directly by each Fund and may only be terminated by agreement of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||
Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
Operating expense limitation as a percentage of average daily net assets |
0.60% | 0.56% | 0.64% |
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, DIFSCs fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the Statements of operations under Accounting and administration expenses. For the year ended Aug. 31, 2019, each Fund was charged for these services as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||
Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
$24,864 | $6,928 | $10,757 |
DIFSC is also the transfer agent and dividend disbursing agent of the Funds. For these services, DIFSCs fees are calculated daily and paid monthly based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; and 0.005% of the next $20 billion; and 0.0025% of average daily net assets in excess of $50 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the Statements of operations under Dividend disbursing and transfer agent fees and expenses. For the year ended Aug. 31, 2019, each Fund was charged for these services as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||
Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
$45,872 | $6,381 | $14,890 |
91
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond 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 each Fund. Sub-transfer agency fees are paid by each Fund and are also included on the Statements of operations under Dividend disbursing and transfer agent fees and expenses. The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual 12b-1 fee of 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class C shares. DDLP has contracted to waive Delaware Tax-Free Minnesota Intermediate Funds Class A shares 12b-1 fee to 0.15% of average daily net assets from Sept. 1, 2018 through Aug. 31, 2019.** 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, tax, and regulatory reporting services to each Fund. These amounts are included on the Statements of operations under Legal fees. For the year ended Aug. 31, 2019, each Fund was charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates employees as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||
Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
$15,228 | $2,187 | $4,948 |
For the year ended Aug. 31, 2019, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||
Tax-Free | Minnesota | High-Yield Municipal | ||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||
$20,347 | $4,240 | $9,705 |
For the year ended Aug. 31, 2019, DDLP received gross CDSC commissions on redemptions of each Funds Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | |||||||||||||
Tax-Free | Minnesota | High-Yield Municipal | |||||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | |||||||||||||
Class A |
$ | 1,061 | $ | | $ | | |||||||||
Class C |
1,081 | 194 | 2,911 |
92
Trustees fees include expenses accrued by each Fund for each Trustees retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the year ended Aug. 31, 2019, were executed by each Fund 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 such transactions for compliance with the procedures adopted by the Boards. Pursuant to these procedures, for the year ended Aug. 31, 2019, the Funds engaged in the following Rule 17a-7 securities purchases and securities sales, which resulted in net realized gains (losses) as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||||||||
Tax-Free | Minnesota | High-Yield Municipal | ||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||||||||
Purchases |
$ | 13,471,671 | $5,878,927 | $9,560,504 | ||||||||
Sales |
5,720,495 | 9,275,841 | 11,656,149 | |||||||||
Net realized gains (losses) |
(24,941 | ) | 13,949 | (116,537 | ) |
*For Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, the aggregate contractual waiver period covering this report is from Dec. 29, 2017 through Dec. 28, 2019. For Delaware Tax-Free Minnesota Intermediate Fund, the aggregate contractual waiver period covering this report is from April 1, 2018 through Dec. 28, 2019.
**For Delaware Tax-Free Minnesota Intermediate Fund Class A shares, the aggregate contractual waiver period covering this report is from Dec. 29, 2017 through Dec. 28, 2019.
3. Investments
For the year ended Aug. 31, 2019, each Fund made purchases and sales of investment securities other than short-term investments as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||||||||
Tax-Free | Minnesota | High-Yield Municipal | ||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||||||||
Purchases |
$ | 117,050,659 | $14,601,815 | $37,830,477 | ||||||||
Sales |
73,153,557 | 16,818,305 | 21,643,593 |
93
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond 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 approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. At Aug. 31, 2019, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes for each Fund were as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | ||||||||||
Tax-Free | Minnesota | High-Yield Municipal | ||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||||||||
Cost of investments |
$ | 577,717,653 | $ | 76,244,130 | $ | 189,390,637 | ||||||
|
|
|
|
|
|
|||||||
Aggregate unrealized appreciation of investments |
$ | 35,567,984 | $ | 4,569,465 | $ | 11,716,394 | ||||||
Aggregate unrealized depreciation of investments |
(468,690 | ) | (22 | ) | (307,281 | ) | ||||||
|
|
|
|
|
|
|||||||
Net unrealized appreciation of investments |
$ | 35,099,294 | $ | 4,569,443 | $ | 11,409,113 | ||||||
|
|
|
|
|
|
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 entitys 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 Funds investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
Level 1 | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
Level 2 | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) |
Level 3 | Significant unobservable inputs, including each Funds own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
94
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 Funds investments by fair value hierarchy levels as of Aug. 31, 2019:
Delaware Tax-Free Minnesota Fund | |||||
Level 2 | |||||
Securities |
|||||
Assets: |
|||||
Municipal Bonds |
$ | 603,841,947 | |||
Short-Term Investments |
8,975,000 | ||||
|
|
||||
Total Value of Securities |
$ | 612,816,947 | |||
|
|
||||
Delaware Tax-Free Minnesota Intermediate Fund | |||||
Level 2 | |||||
Securities |
|||||
Assets: |
|||||
Municipal Bonds |
$ | 79,063,573 | |||
Short-Term Investments |
1,750,000 | ||||
|
|
||||
Total Value of Securities |
$ | 80,813,573 | |||
|
|
||||
Delaware Minnesota High-Yield Municipal Bond Fund | |||||
Level 2 | |||||
Securities |
|||||
Assets: |
|||||
Municipal Bonds |
$ | 197,624,750 | |||
Short-Term Investments |
3,175,000 | ||||
|
|
||||
Total Value of Securities |
$ | 200,799,750 | |||
|
|
During the year ended Aug. 31, 2019, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to each Fund. Each Funds policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.
95
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond funds
3. Investments (continued)
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to each Funds net assets. During the year ended Aug. 31, 2019, 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 Aug. 31, 2019 and 2018 were as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | |||||||||||||
Tax-Free | Minnesota | High-Yield Municipal | |||||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | |||||||||||||
Year ended 8/31/19 |
|||||||||||||||
Ordinary income |
$ | 57 | $ | | $ | 19 | |||||||||
Tax-exempt income |
16,220,204 | 2,178,234 | 5,301,651 | ||||||||||||
|
|
|
|
|
|
||||||||||
Total |
$ | 16,220,261 | $ | 2,178,234 | $ | 5,301,670 | |||||||||
|
|
|
|
|
|
||||||||||
Year ended 8/31/18 |
|||||||||||||||
Ordinary income |
$ | 24,273 | $ | | $ | 30,002 | |||||||||
Tax-exempt income |
16,367,225 | 2,431,471 | 5,142,526 | ||||||||||||
Long-term capital gains |
2,768,366 | 368,988 | | ||||||||||||
|
|
|
|
|
|
||||||||||
Total |
$ | 19,159,864 | $ | 2,800,459 | $ | 5,172,528 | |||||||||
|
|
|
|
|
|
96
5. Components of Net Assets on a Tax Basis
As of Aug. 31, 2019, the components of net assets on a tax basis were as follows:
Delaware | Delaware Tax-Free | Delaware Minnesota | |||||||||||||
Tax-Free | Minnesota | High-Yield Municipal | |||||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | |||||||||||||
Shares of beneficial interest |
$ | 550,851,980 | $ | 76,335,861 | $ | 189,260,917 | |||||||||
Undistributed tax-exempt income |
141,285 | 48,383 | 134,386 | ||||||||||||
Undistributed long-term capital gains |
253,490 | | | ||||||||||||
Capital loss carryforwards |
| (98,039 | ) | (969,374 | ) | ||||||||||
Distributions payable |
(381,672 | ) | (52,573 | ) | (134,386 | ) | |||||||||
Unrealized appreciation of investments |
35,099,294 | 4,569,443 | 11,409,113 | ||||||||||||
|
|
|
|
|
|
||||||||||
Net assets |
$ | 585,964,377 | $ | 80,803,075 | $ | 199,700,656 | |||||||||
|
|
|
|
|
|
The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of market discount and premium on debt instruments and tax deferral of losses due to wash sales, if applicable.
Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized for tax years beginning after Dec. 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. At Aug. 31, 2019, Delaware Tax-Free Minnesota Fund did not have any capital loss carryforwards.
At Aug. 31, 2019, capital loss carryforwards available to offset future realized capital gains for Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund were as follows:
Loss carryforward character | |||||||||||||||
Short-term |
Long-term |
Total | |||||||||||||
Delaware Tax-Free Minnesota Intermediate Fund |
$ | 98,039 | $ | | $ | 98,039 | |||||||||
Delaware Minnesota High-Yield Municipal Bond Fund |
845,337 | 124,037 | 969,374 |
97
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond funds
6. Capital Shares
Transactions in capital shares were as follows:
Delaware Tax-Free | Delaware Minnesota | |||||||||||||||||||||||
Delaware Tax-Free | Minnesota | High-Yield Municipal | ||||||||||||||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | ||||||||||||||||||||||
Year ended
|
Year ended
|
Year ended
|
||||||||||||||||||||||
8/31/19 | 8/31/18 | 8/31/19 | 8/31/18 | 8/31/19 | 8/31/18 | |||||||||||||||||||
Shares sold: |
||||||||||||||||||||||||
Class A |
2,812,545 | 3,125,082 | 521,273 | 436,654 | 1,091,129 | 1,521,905 | ||||||||||||||||||
Class C |
252,325 | 213,991 | 82,541 | 61,309 | 291,127 | 310,619 | ||||||||||||||||||
Institutional Class |
6,847,310 | 4,490,186 | 773,437 | 499,420 | 2,920,048 | 2,291,763 | ||||||||||||||||||
Shares issued upon reinvestment of dividends and distributions: |
| |||||||||||||||||||||||
Class A |
798,095 | 996,278 | 124,608 | 158,251 | 240,677 | 218,090 | ||||||||||||||||||
Class C |
53,400 | 96,954 | 13,717 | 21,615 | 39,113 | 55,726 | ||||||||||||||||||
Institutional Class |
263,476 | 267,851 | 36,374 | 45,617 | 174,526 | 143,414 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
11,027,151 | 9,190,342 | 1,551,950 | 1,222,866 | 4,756,620 | 4,541,517 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Shares redeemed: |
||||||||||||||||||||||||
Class A |
(5,263,546 | ) | (5,728,359 | ) | (1,153,362 | ) | (1,288,814 | ) | (1,382,974 | ) | (1,510,584 | ) | ||||||||||||
Class C |
(878,285 | ) | (1,441,859 | ) | (249,651 | ) | (355,611 | ) | (481,931 | ) | (1,296,104 | ) | ||||||||||||
Institutional Class |
(3,637,252 | ) | (1,965,838 | ) | (294,820 | ) | (1,168,219 | ) | (1,406,980 | ) | (1,535,704 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(9,779,083 | ) | (9,136,056 | ) | (1,697,833 | ) | (2,812,644 | ) | (3,271,885 | ) | (4,342,392 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) |
1,248,068 | 54,286 | (145,883 | ) | (1,589,778 | ) | 1,484,735 | 199,125 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
100
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables on the previous page and on the Statements of changes in net assets. For the years ended Aug. 31, 2019 and 2018, the Funds had the following exchange transactions:
Year ended 8/31/19 |
||||||||||||||||||||
Exchange Redemptions |
Exchange Subscriptions |
|||||||||||||||||||
Class A Shares |
Class C Shares |
Class A Shares |
Institutional Class Shares |
Value | ||||||||||||||||
Delaware Tax-Free Minnesota Fund |
59,365 | 40,077 | 31,466 | 68,171 | $ | 1,220,708 | ||||||||||||||
Delaware Tax-Free Minnesota Intermediate Fund |
1,165 | 9,191 | 9,217 | 1,165 | 112,353 | |||||||||||||||
Delaware Minnesota High-Yield Municipal Bond Fund |
26,086 | 44,298 | 9,709 | 60,819 | 745,406 | |||||||||||||||
Year ended 8/31/18 |
||||||||||||||||||||
Exchange Redemptions | Exchange Subscriptions |
|||||||||||||||||||
Class A Shares |
Class C Shares |
Class A Shares |
Institutional Class Shares |
Value | ||||||||||||||||
Delaware Tax-Free Minnesota Fund |
179,677 | 324,507 | 282,986 | 222,704 | $ | 6,195,653 | ||||||||||||||
Delaware Tax-Free Minnesota Intermediate Fund |
24,209 | 52,010 | 43,368 | 33,036 | 833,306 | |||||||||||||||
Delaware Minnesota High-Yield Municipal Bond Fund |
47,282 | 241,837 | 232,144 | 57,805 | 3,092,167 |
7. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a revolving line of credit intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. The revolving line of credit available was reduced from $155,000,000 to $130,000,000 on Sept. 6, 2018. Under the agreement, the Participants were charged an annual commitment fee of 0.15%, which was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum 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 Nov. 5, 2018.
99
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond funds
7. Line of Credit (continued)
On Nov. 5, 2018, the Participants entered into an amendment to the agreement for a $190,000,000 revolving line of credit. The revolving line of credit available was increased to $220,000,000 on Nov. 29, 2018. The revolving line of credit is to be used as described on the previous page and operates in substantially the same manner as the original agreement. The line of credit available under the agreement expires on Nov. 4, 2019.
The Funds had no amounts outstanding as of Aug. 31, 2019, or at any time during the year then ended.
8. Geographic, Credit, and Market Risks
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
The Funds concentrate their investments in securities issued by municipalities, mainly in Minnesota, and may be subject to geographic concentration risk. In addition, the Funds have the flexibility to invest in issuers in US territories and possessions such as the Commonwealth of Puerto Rico, the US Virgin Islands, and Guam, whose bonds are also free of federal and individual state income taxes.
The value of the Funds investments may be adversely affected by new legislation within the US state or territories, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no certainty that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At Aug. 31, 2019, the percentages of each Funds net assets insured by bond insurers are listed below, and these securities have been identified in the Schedules of investments.
Delaware | Delaware Tax-Free | Delaware Minnesota | |||||||||||||
Tax-Free | Minnesota | High-Yield Municipal | |||||||||||||
Minnesota Fund | Intermediate Fund | Bond Fund | |||||||||||||
Assured Guaranty Corporation |
2.75 | % | 3.15 | % | | ||||||||||
Assured Guaranty Municipal Corporation |
0.74 | % | 1.24 | % | 1.49 | % | |||||||||
National Public Finance Guarantee Corporation |
0.79 | % | | | |||||||||||
|
|
|
|
|
|
||||||||||
4.28 | % | 4.39 | % | 1.49 | % | ||||||||||
|
|
|
|
|
|
Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poors Financial Services LLC (S&P), lower than Baa3 by Moodys Investors Service Inc. (Moodys), 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.
100
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 issues 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 Moodys, 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-day functions of determining whether individual securities are liquid for purposes of each Funds 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 Funds 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the Schedules of investments. Restricted securities are valued pursuant to the security valuation procedures described in Note 1.
9. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Funds maximum exposure under these arrangements is unknown. However, each
101
Notes to financial statements
Delaware Funds® by Macquarie Minnesota municipal bond funds
9. Contractual Obligations (continued)
Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Funds existing contracts and expects the risk of loss to be remote.
10. Recent Accounting Pronouncements
In March 2017, the FASB issued an Accounting Standards Update (ASU), ASU 2017-08, Receivables Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. The ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.
In August 2018, the FASB issued an ASU 2018-13, which changes certain fair value measurement disclosure requirements. The ASU 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. The ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
In August 2018, the Securities and Exchange Commission (SEC) adopted amendments to Regulation S-X to update and simplify the disclosure requirements for registered investment companies by eliminating requirements that are redundant or duplicative of US GAAP requirements or other SEC disclosure requirements. The new amendments require the presentation of the total, rather than the components, of distributable earnings on the Statements of assets and liabilities and the total, rather than the components, of dividends from net investment income and distributions from net realized gains on the Statements of changes in net assets. The amendments also removed the requirement for the parenthetical disclosure of undistributed net investment income on the Statements of changes in net assets and certain tax adjustments that were reflected in the Notes to financial statements. All of these have been reflected in the Funds financial statements.
11. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to Aug. 31, 2019, that would require recognition or disclosure in the Funds financial statements.
102
registered public accounting firm
To the Board of Trustees of Voyageur Tax-Free Funds, Voyageur Intermediate Tax-Free Funds and Voyageur Mutual Funds and Shareholders of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota 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 Minnesota Fund (constituting Voyageur Tax-Free Funds), Delaware Tax-Free Minnesota Intermediate Fund (constituting Voyageur Intermediate Tax-Free Funds) and Delaware Minnesota High-Yield Municipal Bond Fund (one of the funds constituting Voyageur Mutual Funds) (hereafter collectively referred to as the Funds) as of August 31, 2019, the related statements of operations for the year ended August 31, 2019, the statements of changes in net assets for each of the two years in the period ended August 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2019 (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of August 31, 2019, 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, 2019 and each of the financial highlights for each of the five years in the period ended August 31, 2019 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, 2019 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 16, 2019
We have served as the auditor of one or more investment companies in Delaware Funds® by Macquarie since 2010.
103
Other Fund information (Unaudited)
Delaware Funds® by Macquarie Minnesota municipal bond funds
Tax Information
The information set forth below is for each Funds 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 Aug. 31, 2019, each Fund reports distributions paid during the year as follows:
(A) | ||||
Tax-Exempt | ||||
Income | Total | |||
Distributions | Distributions | |||
(Tax Basis) | (Tax Basis) | |||
Delaware Tax-Free Minnesota Fund |
100.00% | 100.00% | ||
Delaware Tax-Free Minnesota Intermediate Fund |
100.00% | 100.00% | ||
Delaware Minnesota High-Yield Municipal Bond Fund |
100.00% | 100.00% |
(A) is based on a percentage of each Funds total distributions.
Board consideration of Investment Advisory agreements for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at a meeting held on August 21-22, 2019
At a meeting held on Aug. 21-22, 2019 (the Annual Meeting), the Board of Trustees (the Board), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond 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 contract. Information furnished specifically in connection with the renewal of the Investment Management Agreement with Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), included materials provided by DMC and its affiliates (collectively, Macquarie Investment Management) concerning, among other things, the nature, extent, and quality of services provided to the Funds; the costs of such services to the Funds;
104
economies of scale; and the investment managers financial condition and profitability. In addition, in connection with the Annual Meeting, materials were provided to the Trustees in May 2019, including reports provided by Broadridge Financial Solutions (Broadridge). The Broadridge reports compared each Funds 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 DMCs policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; comparative client fee information; 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 managers ability to invest fully in accordance with Fund policies.
In considering information relating to the approval of each Funds 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 recognized DMCs receipt of certain favorable industry distinctions during the past several years. The Board gave favorable consideration to DMCs 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 shareholders 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, 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 Investment Committee meetings throughout the year, the Board gave particular weight to the Broadridge reports furnished for the Annual Meeting. The Broadridge reports prepared for each Fund showed the investment performance of its Class A shares in comparison to a group of similar funds as selected by Broadridge (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
105
Other Fund information (Unaudited)
Delaware Funds® by Macquarie Minnesota municipal bond funds
Board consideration of Investment Advisory agreements for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at a meeting held on August 21-22, 2019 (continued)
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 Jan. 31, 2019. The Boards objective is that each Funds performance for the 1-, 3-, and 5-year periods be at or above the median of its Performance Universe.
Delaware Tax-Free Minnesota Fund The Performance Universe for the Fund consisted of the Fund and all retail and institutional Minnesota municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Funds total return for the 1-year period was in the third quartile of its Performance Universe. The report further showed that the Funds total return for the 3-, 5-, and 10-year periods was in the second quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Tax-Free Minnesota Intermediate Fund The Performance Universe for the Fund consisted of the Fund and all retail and institutional other states intermediate municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Funds total return for the 1-year period was in the third quartile of its Performance Universe. The report further showed that the Funds total return for the 3-, 5-, and 10-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.
Delaware Minnesota High-Yield Municipal Bond Fund Broadridge currently classifies the Fund as a Minnesota municipal debt fund. However, Management believes that it is more appropriate to include the Fund in the high yield municipal debt funds category, to provide a comparison to a representative peer group based on credit quality instead of a peer group based on state of issuance. Accordingly, the Broadridge report prepared for the Fund compares the Funds performance to two separate Performance Universes one consisting of the Fund and all retail and institutional Minnesota municipal debt funds and the other consisting of the Fund and all retail and institutional high yield municipal debt funds. When compared to Minnesota municipal debt funds, the Broadridge report comparison showed that the Funds total return for the 1-, 3-, 5-, and 10-year periods was in the first quartile of its Performance Universe. When compared to high yield municipal debt funds, the Broadridge report comparison showed that the Funds total return for the 1-year period was in the third quartile of its Performance Universe and the Funds total return for the 3-, 5-, and 10-year periods was in the fourth quartile of its Performance Universe. The Board observed that, when compared to other Minnesota municipal debt funds, the Funds performance was in line with the Boards objective; however, when compared to other high yield municipal debt funds, the Funds performance results were not in line with the Boards objective. In evaluating the Funds performance, the Board considered the numerous investment and performance reports and other information delivered by Management personnel to the Boards Investments Committee. The Board was satisfied that Management was taking action to improve comparative Fund performance and to meet the Boards performance objective.
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
106
recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and total expense ratios of a group of similar funds as selected by Broadridge (the Expense Group). In reviewing comparative costs, each Funds contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Funds total expenses were also compared with those of its Expense Group. The Broadridge total expenses, for comparative consistency, were shown by Broadridge for Class A shares and comparative total expenses including 12b-1 and non-12b-1 service fees. The Boards objective is for each Funds total expense ratio to be competitive with those of the peer funds within its Expense Group.
Delaware Tax-Free Minnesota Fund The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the highest expenses of its Expense Group. The Board gave favorable consideration to the Funds management fee but noted that the Funds total expenses were not in line with the Boards objective. In evaluating the total expenses, the Board considered waivers in place through December 2019 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting and fund accounting oversight services, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Managements efforts to improve the Funds total expense ratio and to bring it in line with the Boards objective.
Delaware Tax-Free Minnesota Intermediate Fund The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Broadridge report.
Delaware Minnesota High-Yield Municipal Bond Fund When compared to Minnesota municipal debt funds, the expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses in its Expense Group and its total expenses were in the quartile with the highest expenses of the Expense Group. When compared to high yield municipal debt funds, the expense comparisons for the Fund showed that its actual management fee was in the quartile with the highest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of the Expense Group. The Board noted that the Funds total expenses were not in line with the Boards objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2019 and various initiatives implemented by Management, such as the negotiation of lower fees for fund accounting, fund accounting oversight services, and custody, which had created an opportunity for a further reduction in expenses. The Board was satisfied with Managements efforts to improve the Funds total expense ratio and to bring it in line with the Boards objective.
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 DMCs business in providing management and other services to each of the individual funds and the Delaware Funds as a whole. Specific attention was given
107
Other Fund information (Unaudited)
Delaware Funds® by Macquarie Minnesota municipal bond funds
Board consideration of Investment Advisory agreements for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at a meeting held on August 21-22, 2019 (continued)
to the methodology used by DMC in allocating costs for the purpose of determining profitability. Management stated that the level of profits of DMC, to a certain extent, reflects recent operational cost savings and efficiencies initiated by DMC. The Board considered DMCs 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 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 MIMBT profitability as compared to certain peer fund complexes and the Independent Trustees discussed with JDL personnel regarding DMCs 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 Funds assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed each Funds 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. Although, as of March 31, 2019, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund had not reached a size at which they could take advantage of any breakpoints in the applicable fee schedule, the Board recognized that each Funds fee was structured so that, if the Fund increases sufficiently in size, then economies of scale may be shared. The Board noted that, as of March 31, 2019, Delaware Tax-Free Minnesota Funds assets exceeded the first 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.
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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 funds 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
Name, Address, | Position(s) | Length of | ||
and Birth Date | Held with Fund(s) | Time Served | ||
Interested Trustee
|
||||
Shawn K. Lytle1 2005 Market Street Philadelphia, PA 19103 February 1970 |
President, Chief Executive Officer, and Trustee |
President and Chief Executive Officer since August 2015
| ||
Trustee since September 2015
| ||||
Independent Trustees
|
||||
Thomas L. Bennett | Chair and Trustee | Trustee since | ||
2005 Market Street | March 2005 | |||
Philadelphia, PA 19103 | ||||
October 1947 | Chair since | |||
March 2015 | ||||
Jerome D. Abernathy | Trustee | Since January 2019 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
July 1959
|
||||
Ann D. Borowiec | Trustee | Since March 2015 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
November 1958
|
1 | Shawn K. Lytle is considered to be an Interested Trustee because he is an executive officer of the Funds(s) investment advisor. |
110
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.
Number of Portfolios in | ||||
Principal Occupation(s) | Fund Complex Overseen | Other Directorships | ||
During the Past Five Years | by Trustee or Officer | Held by Trustee or Officer | ||
|
||||
President Macquarie | 59 | Trustee UBS | ||
Investment Management2 | Relationship Funds, | |||
(June 2015Present) | SMA Relationship | |||
Trust, and UBS Funds | ||||
Regional Head of | (May 2010April 2015) | |||
Americas UBS Global | ||||
Asset Management | ||||
(April 2010May 2015)
|
||||
|
||||
Private Investor | 59 | None | ||
(March 2004Present)
|
||||
Managing Member, | 59 | None | ||
Stonebrook Capital | ||||
Management, LLC (financial | ||||
technology: macro factors | ||||
and databases) | ||||
(January 1993Present)
|
||||
Chief Executive Officer, | 59 | Director | ||
Private Wealth Management | Banco Santander International | |||
(20112013) and | (October 2016Present) | |||
Market Manager, | ||||
New Jersey Private | Director | |||
Bank (20052011) | Santander Bank, N.A. | |||
J.P. Morgan Chase & Co.
|
(December 2016Present) |
2 | Macquarie Investment Management is the marketing name for Macquarie Management Holdings, Inc. and its subsidiaries, including the Funds(s) investment advisor, principal underwriter, and its transfer agent. |
111
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
Name, Address, and Birth Date |
Position(s) Held with Fund(s) |
Length of Time Served | ||
Independent Trustees (continued)
|
||||
Joseph W. Chow | Trustee | Since January 2013 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
January 1953
|
||||
John A. Fry | Trustee | Since January 2001 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
May 1960
|
||||
Lucinda S. Landreth | Trustee | Since March 2005 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
June 1947
|
112
Number of Portfolios in | ||||
Principal Occupation(s) | Fund Complex Overseen | Other Directorships | ||
During the Past Five Years | by Trustee or Officer | Held by Trustee or Officer | ||
|
||||
Private Investor | 59 | Director and Audit Committee | ||
(April 2011Present) | Member Hercules | |||
Technology Growth | ||||
Capital, Inc. | ||||
(July 2004July 2014)
| ||||
President | 59 | Director; Compensation | ||
Drexel University | Committee and | |||
(August 2010Present) | Governance Committee | |||
Member Community | ||||
President | Health Systems | |||
Franklin & Marshall College | (May 2004present) | |||
(July 2002June 2010) | ||||
Director Drexel | ||||
Morgan & Co. | ||||
(2015present) | ||||
Director and Audit Committee | ||||
Member vTv | ||||
Therapeutics Inc. | ||||
(2017present) | ||||
Director and Audit Committee | ||||
Member FS Credit Real | ||||
Estate Income Trust, Inc. | ||||
(2018present)
| ||||
Private Investor | 59 | None | ||
(2004Present)
|
113
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
Name, Address, | Position(s) | Length of | ||
and Birth Date | Held with Fund(s) | Time Served | ||
Independent Trustees (continued)
|
||||
Frances A. Sevilla-Sacasa | Trustee | Since September 2011 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
January 1956
|
||||
Thomas K. Whitford | Trustee | Since January 2013 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
March 1956
|
114
Number of Portfolios in | ||||
Principal Occupation(s) | Fund Complex Overseen | Other Directorships | ||
During the Past Five Years | by Trustee or Officer | Held by Trustee or Officer | ||
|
||||
Private Investor | 59 | Trust Manager and | ||
(January 2017Present) | Audit Committee | |||
Chair Camden | ||||
Chief Executive Officer | Property Trust | |||
Banco Itaú | (August 2011Present) | |||
International | ||||
(April 2012December 2016) | Director; Audit | |||
Committee Member | ||||
Executive Advisor to Dean | Carrizo Oil & Gas, Inc. | |||
(August 2011March 2012) | (March 2018Present) | |||
and Interim Dean | ||||
(January 2011July 2011) | ||||
University of Miami School of | ||||
Business Administration | ||||
President U.S. Trust, | ||||
Bank of America Private | ||||
Wealth Management | ||||
(Private Banking) | ||||
(July 2007December 2008) | ||||
Vice Chairman | 59 | Director HSBC North | ||
(2010April 2013) | America Holdings Inc. | |||
PNC Financial | (December 2013Present) | |||
Services Group | ||||
Director HSBC USA Inc. | ||||
(July 2014Present) | ||||
Director | ||||
HSBC Bank USA, | ||||
National Association | ||||
(July 2014March 2017) | ||||
Director HSBC | ||||
Finance Corporation | ||||
(December 2013April 2018) |
115
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
Name, Address, | Position(s) | Length of | ||
and Birth Date | Held with Fund(s) | Time Served | ||
Independent Trustees (continued)
|
||||
Christianna Wood | Trustee | Since January 2019 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
August 1959
|
116
Number of Portfolios in | ||||
Principal Occupation(s) | Fund Complex Overseen | Other Directorships | ||
During the Past Five Years | by Trustee or Officer | Held by Trustee or Officer | ||
|
||||
Chief Executive Officer | 59 | Director; Finance Committee | ||
and President | and Audit Committee | |||
Gore Creek | Member H&R | |||
Capital, Ltd. | Block Corporation | |||
(August 2009Present) | (July 2008Present)
| |||
Director; Chair of Investments | ||||
Committee and Audit | ||||
Committee Member | ||||
Grange Insurance | ||||
(2013Present)
| ||||
Trustee; Chair of | ||||
Nominating and Governance | ||||
Committee and Audit | ||||
Committee Member | ||||
The Merger Fund | ||||
(2013Present), | ||||
The Merger Fund VL | ||||
(2013-Present), | ||||
WCM Alternatives: | ||||
Event-Driven Fund | ||||
(2013Present), | ||||
and WCM Alternatives: | ||||
Credit Event Fund | ||||
(December 2017Present)
| ||||
Director; Chair of | ||||
Governance Committee | ||||
and Audit Committee | ||||
Member International | ||||
Securities Exchange | ||||
(20102016) |
117
Board of trustees / directors and officers addendum
Delaware Funds® by Macquarie
Name, Address, | Position(s) | Length of | ||
and Birth Date | Held with Fund(s) | Time Served | ||
Independent Trustees (continued)
|
||||
Janet L. Yeomans | Trustee | Since April 1999 | ||
2005 Market Street | ||||
Philadelphia, PA 19103 | ||||
July 1948
|
||||
Officers
|
||||
David F. Connor | Senior Vice President, | Senior Vice President since | ||
2005 Market Street | General Counsel, | May 2013; General | ||
Philadelphia, PA 19103 | and Secretary | Counsel since May 2015; | ||
December 1963 | Secretary since | |||
October 2005
| ||||
Daniel V. Geatens | Vice President | Vice President and | ||
2005 Market Street | and Treasurer | Treasurer since October 2007 | ||
Philadelphia, PA 19103 | ||||
October 1972
|
||||
Richard Salus | Senior Vice President | Senior Vice President and | ||
2005 Market Street | and Chief Financial Officer | Chief Financial Officer | ||
Philadelphia, PA 19103 | since November 2006 | |||
October 1963
|
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.
118
Number of Portfolios in | ||||
Principal Occupation(s) | Fund Complex Overseen | Other Directorships | ||
During the Past Five Years | by Trustee or Officer | Held by Trustee or Officer | ||
|
||||
Vice President and Treasurer | 59 | Director; Personnel and | ||
(January 2006July 2012), | Compensation Committee | |||
Vice President | Chair; Member of Nominating, | |||
Mergers & Acquisitions | Investments, and Audit | |||
(January 2003January 2006), | Committees for various | |||
and Vice President | periods throughout | |||
and Treasurer | directorship | |||
(July 1995January 2003) | Okabena Company | |||
3M Company | (20092017) | |||
|
||||
David F. Connor has served | 59 | None3 | ||
in various capacities at | ||||
different times at | ||||
Macquarie Investment | ||||
Management.
|
||||
Daniel V. Geatens has served | 59 | None3 | ||
in various capacities at | ||||
different times at | ||||
Macquarie Investment | ||||
Management.
|
||||
Richard Salus has served | 59 | None3 | ||
in various capacities | ||||
at different times at | ||||
Macquarie Investment | ||||
Management. |
3 | David F. Connor, Daniel V. Geatens, and Richard Salus 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 and Treasurer for Macquarie Global Infrastructure Total Return Fund Inc., which has an affiliated investment manager. |
119
Board of trustees | ||||||
Shawn K. Lytle President and Chief Executive Officer Delaware Funds® by Macquarie Philadelphia, PA
Thomas L. Bennett Chairman of the Board Delaware Funds by Macquarie Private Investor Rosemont, PA
Jerome D. Abernathy Managing Member Stonebrook Capital Management, LLC Jersey City, NJ
|
Ann D. Borowiec Former Chief Executive Officer Private Wealth Management J.P. Morgan Chase & Co. New York, NY
Joseph W. Chow Former Executive Vice President State Street Corporation Boston, MA
John A. Fry President Drexel University Philadelphia, PA |
Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. New York, NY
Frances A. Sevilla-Sacasa Former Chief Executive Officer Banco Itaú International Miami, FL |
Thomas K. Whitford Former Vice Chairman PNC Financial Services Group Pittsburgh, PA
Christianna Wood Chief Executive Officer and President Gore Creek Capital, Ltd. Golden, CO
Janet L. Yeomans Former Vice President and Treasurer 3M Company St. Paul, MN | |||
Affiliated officers | ||||||
David F. Connor | Daniel V. Geatens | Richard Salus | ||||
Senior Vice President, | Vice President and | Senior Vice President and | ||||
General Counsel, | Treasurer | Chief Financial Officer | ||||
and Secretary | Delaware Funds | Delaware Funds | ||||
Delaware Funds | by Macquarie | by Macquarie | ||||
by Macquarie | Philadelphia, PA | Philadelphia, PA | ||||
Philadelphia, PA |
This annual report is for the information of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by 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-Q or Form N-PORT (available for filings after March 31, 2019). Each Funds Forms N-Q or 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 SECs 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-Q or Form N-PORT are available without charge on the Funds website at delawarefunds.com/literature. Each Funds Forms N-Q and Forms N-PORT may be reviewed and copied at the SECs 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 SECs website at sec.gov.
120
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrants 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 registrants 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 registrants Board of Trustees/Directors has determined that certain members of the registrants 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 registrants 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 registrants Board of Trustees/Directors has also determined that each member of the registrants 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/Directors 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 registrants Audit Committee are set forth below:
John A. Fry
Lucinda S. Landreth
Thomas K. Whitford
Christianna Wood
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 registrants annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $40,400 for the fiscal year ended August 31, 2019.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrants annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $38,500 for the fiscal year ended August 31, 2018.
(b) Audit-related fees.
The aggregate fees billed by the registrants independent auditors for services relating to the performance of the audit of the registrants financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2019.
The aggregate fees billed by the registrants independent auditors for services relating to the performance of the audit of the financial statements of the registrants 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 $909,000 for the registrants fiscal year ended August 31, 2019. The percentage of these fees relating to services approved by the registrants 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 registrants independent auditors for services relating to the performance of the audit of the registrants financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2018.
The aggregate fees billed by the registrants independent auditors for services relating to the performance of the audit of the financial statements of the registrants 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 $640,000 for the registrants fiscal year ended August 31, 2018. The percentage of these fees relating to services approved by the registrants 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 registrants independent auditors for tax-related services provided to the registrant were $5,500 for the fiscal year ended August 31, 2019. The percentage of these fees relating to services approved by the registrants 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 registrants independent auditors for tax-related services provided to the registrants 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 registrants fiscal year ended August 31, 2019. The percentage of these fees relating to services approved by the registrants 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 registrants independent auditors for tax-related services provided to the registrant were $4,584 for the fiscal year ended August 31, 2018. The percentage of these fees relating to services approved by the registrants 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 registrants independent auditors for tax-related services provided to the registrants 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 registrants fiscal year ended August 31, 2018. The percentage of these fees relating to services approved by the registrants 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, 2019.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrants independent auditors to the registrants 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 registrants fiscal year ended August 31, 2019. The percentage of these fees relating to services approved by the registrants 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, 2018.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrants independent auditors to the registrants 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 registrants fiscal year ended August 31, 2018. The percentage of these fees relating to services approved by the registrants 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 registrants 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 registrants 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 $40,000 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 registrants 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 registrants 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 registrants independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $9,955,000 and $11,748,000 for the registrants fiscal years ended August 31, 2019 and August 31, 2018, respectively.
(h) In connection with its selection of the independent auditors, the registrants Audit Committee has considered the independent auditors provision of non-audit services to the registrants 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 Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrants principal executive officer and principal financial officer have evaluated the registrants 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 registrants internal control over financial reporting that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits
(a) (1) Code of Ethics
Not applicable.
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
VOYAGEUR TAX FREE FUNDS
SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | November 6, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | November 6, 2019 |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | November 6, 2019 |
EXHIBIT 99.CERT
CERTIFICATION
I, Shawn K. Lytle, certify that:
1. | I have reviewed this report on Form N-CSR 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; | |||
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 registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants 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. |
Date: November 6, 2019
SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
CERTIFICATION
I, Richard Salus, certify that:
1. | I have reviewed this report on Form N-CSR 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; | |||
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 registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants 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. |
Date: November 6, 2019
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
EXHIBIT 99.906CERT
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the attached report of the registrant on Form N-CSR to be filed with the Securities and Exchange Commission (the Report), each of the undersigned officers of the registrant does hereby certify, to the best of such officers knowledge, that:
1. | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and | |
2. | The information contained in the Report fairly represents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report. |
Date: November 6, 2019
SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the SEC or its staff upon request.
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