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: |
610 Market Street Philadelphia, PA 19106 |
| Name and address of agent for service: |
David F. Connor, Esq. 610 Market Street Philadelphia, PA 19106 |
| Registrant’s telephone number, including area code: | (800) 523-1918 |
| Date of fiscal year end: | August 31 |
| Date of reporting period: | February 28, 2023 |
Item 1. Reports to Stockholders
 |
 |
| Semiannual report | |
|
Fixed income mutual funds
Delaware Tax-Free Minnesota Fund
Delaware Tax-Free Minnesota Intermediate Fund
Delaware Minnesota High-Yield Municipal Bond Fund
February 28, 2023 | |
|
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
You can obtain shareholder reports and prospectuses online instead of in the mail. Visit delawarefunds.com/edelivery. | |
Experience Delaware Funds by Macquarie®
Macquarie Asset Management (MAM) is a global asset manager that aims to deliver positive impact for everyone. MAM Public Investments traces its roots to 1929 and partners with institutional and individual clients to deliver specialist active investment capabilities across global equities, fixed income, and multi-asset solutions using a conviction-based, long-term approach to investing. In the US, retail investors recognize our Delaware Funds by Macquarie family of funds as one of the oldest mutual fund families.
If you are interested in learning more about creating an investment plan, contact your financial advisor.
You can learn more about Delaware Funds or obtain a prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at delawarefunds.com/literature.
Manage your account online
| ● | Check your account balance and transactions |
| ● | View statements and tax forms |
| ● | Make purchases and redemptions |
Visit delawarefunds.com/account-access.
Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is a full-service asset manager offering a diverse range of products across public and private markets including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and asset finance. The Public Investments business is a part of MAM and includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
The Funds are distributed by Delaware Distributors, L.P. (DDLP), an affiliate of MIMBT and Macquarie Group Limited.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
The Funds are governed by US laws and regulations.
This semiannual 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.
Unless otherwise noted, views expressed herein are current as of February 28, 2023, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.
All third-party marks cited are the property of their respective owners.
© 2023 Macquarie Management Holdings, Inc.
For the six-month period from September 1, 2022 to February 28, 2023 (Unaudited)
Delaware Tax-Free Minnesota Fund seeks 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.
Delaware Tax-Free Minnesota Intermediate Fund seeks 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.
Delaware Minnesota High-Yield Municipal Bond Fund seeks a high level of current income that is exempt from federal income tax and from Minnesota state personal income taxes, primarily through investment in medium- and lower-grade municipal obligations.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from September 1, 2022 to February 28, 2023.
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 ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In
1
Disclosure of Fund expenses
For the six-month period from September 1, 2022 to February 28, 2023 (Unaudited)
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.
Delaware Tax-Free Minnesota Fund
Expense analysis of an investment of $1,000
| |
Beginning Account Value 9/1/22 |
|
|
Ending Account Value 2/28/23 |
|
|
Annualized Expense Ratio |
|
Expenses Paid During Period 9/1/22 to 2/28/23* | ||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 990.10 | 0.85% | $4.19 | |||||||
| Class C | 1,000.00 | 986.50 | 1.60% | 7.88 | |||||||||
| Institutional Class | 1,000.00 | 991.30 | 0.60% | 2.96 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,020.58 | 0.85% | $4.26 | |||||||
| Class C | 1,000.00 | 1,016.86 | 1.60% | 8.00 | |||||||||
| Institutional Class | 1,000.00 | 1,021.82 | 0.60% | 3.01 | |||||||||
Delaware Tax-Free Minnesota Intermediate Fund
Expense analysis of an investment of $1,000
| |
Beginning Account Value 9/1/22 |
|
|
Ending Account Value 2/28/23 |
|
|
Annualized Expense Ratio |
|
Expenses Paid During Period 9/1/22 to 2/28/23* | ||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 998.80 | 0.81% | $4.01 | |||||||
| Class C | 1,000.00 | 995.10 | 1.56% | 7.72 | |||||||||
| Institutional Class | 1,000.00 | 1,001.00 | 0.56% | 2.78 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,020.78 | 0.81% | $4.06 | |||||||
| Class C | 1,000.00 | 1,017.06 | 1.56% | 7.80 | |||||||||
| Institutional Class | 1,000.00 | 1,022.02 | 0.56% | 2.81 | |||||||||
2
Delaware Minnesota High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000
| |
Beginning Account Value 9/1/22 |
|
|
Ending Account Value 2/28/23 |
|
|
Annualized Expense Ratio |
|
Expenses Paid During Period 9/1/22 to 2/28/23* | ||||
| Actual Fund return† | |||||||||||||
| Class A | $ | 1,000.00 | $ | 985.60 | 0.87% | $4.28 | |||||||
| Class C | 1,000.00 | 982.00 | 1.62% | 7.96 | |||||||||
| Institutional Class | 1,000.00 | 987.80 | 0.62% | 3.06 | |||||||||
| Hypothetical 5% return (5% return before expenses) | |||||||||||||
| Class A | $ | 1,000.00 | $ | 1,020.48 | 0.87% | $4.36 | |||||||
| Class C | 1,000.00 | 1,016.76 | 1.62% | 8.10 | |||||||||
| Institutional Class | 1,000.00 | 1,021.72 | 0.62% | 3.11 | |||||||||
| * | “Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (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. |
3
Security type / sector / state / territory allocations
| Delaware Tax-Free Minnesota Fund | As of February 28, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
| Security type / sector |
Percentage of net assets | ||
| Municipal Bonds* | 98.63 | % | |
| Corporate Revenue Bond | 0.14 | % | |
| Education Revenue Bonds | 20.78 | % | |
| Electric Revenue Bonds | 8.37 | % | |
| Healthcare Revenue Bonds | 29.64 | % | |
| Housing Revenue Bonds | 0.50 | % | |
| Industrial Development Revenue/Pollution Control Revenue Bonds | 1.98 | % | |
| Lease Revenue Bonds | 1.99 | % | |
| Local General Obligation Bonds | 13.15 | % | |
| Pre-Refunded/Escrowed to Maturity Bonds | 2.19 | % | |
| Special Tax Revenue Bonds | 4.66 | % | |
| State General Obligation Bonds | 7.82 | % | |
| Transportation Revenue Bonds | 5.90 | % | |
| Water & Sewer Revenue Bonds | 1.51 | % | |
| Short-Term Investments | 0.54 | % | |
| Total Value of Securities | 99.17 | % | |
| Receivables and Other Assets Net of Liabilities | 0.83 | % | |
| 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 | |
| Minnesota | 93.69 | % | |
| Puerto Rico | 5.48 | % | |
| Total Value of Securities | 99.17 | % | |
4
Security type / sector / state / territory allocations
| Delaware Tax-Free Minnesota Intermediate Fund | As of February 28, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
| Security type / sector | Percentage of net assets | ||
| Municipal Bonds* | 98.42 | % | |
| Education Revenue Bonds | 15.80 | % | |
| Electric Revenue Bonds | 6.40 | % | |
| Healthcare Revenue Bonds | 30.82 | % | |
| Housing Revenue Bonds | 0.66 | % | |
| Industrial Development Revenue/Pollution Control Revenue Bond | 1.80 | % | |
| Lease Revenue Bonds | 2.85 | % | |
| Local General Obligation Bonds | 21.56 | % | |
| Pre-Refunded/Escrowed to Maturity Bonds | 0.42 | % | |
| Special Tax Revenue Bonds | 3.10 | % | |
| State General Obligation Bonds | 8.65 | % | |
| Transportation Revenue Bonds | 4.67 | % | |
| Water & Sewer Revenue Bonds | 1.69 | % | |
| Total Value of Securities | 98.42 | % | |
| Receivables and Other Assets Net of Liabilities | 1.58 | % | |
| 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 | 95.17 | % | |
| Puerto Rico | 3.25 | % | |
| Total Value of Securities | 98.42 | % | |
5
Security type / sector / state / territory allocations
| Delaware Minnesota High-Yield Municipal Bond Fund | As of February 28, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials.
| Security type / sector | Percentage of net assets | ||
| Municipal Bonds* | 95.82 | % | |
| Corporate Revenue Bond | 0.41 | % | |
| Education Revenue Bonds | 25.29 | % | |
| Electric Revenue Bonds | 3.82 | % | |
| Healthcare Revenue Bonds | 34.58 | % | |
| Housing Revenue Bonds | 1.52 | % | |
| Industrial Development Revenue/Pollution Control Revenue Bond | 2.30 | % | |
| Lease Revenue Bonds | 2.27 | % | |
| Local General Obligation Bonds | 7.52 | % | |
| Pre-Refunded/Escrowed to Maturity Bonds | 2.08 | % | |
| Special Tax Revenue Bonds | 5.20 | % | |
| State General Obligation Bonds | 5.84 | % | |
| Transportation Revenue Bonds | 4.04 | % | |
| Water & Sewer Revenue Bonds | 0.95 | % | |
| Short-Term Investments | 1.72 | % | |
| Total Value of Securities | 97.54 | % | |
| Receivables and Other Assets Net of Liabilities | 2.46 | % | |
| Total Net Assets | 100.00 | % | |
| * | As of the date of this report, Delaware Minnesota High-Yield Municipal Bond Fund held bonds issued by or on behalf of territories and the states of the US as follows: |
| State / territory | Percentage of net assets | ||
| Minnesota | 92.48 | % | |
| Puerto Rico | 5.06 | % | |
| Total Value of Securities | 97.54 | % | |
6
| Delaware Tax-Free Minnesota Fund | February 28, 2023 (Unaudited) |
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds — 98.63% | ||||||||
| Corporate Revenue Bond — 0.14% | ||||||||
| Cottonwood Revenue | ||||||||
| (Extreme Holdings LLC Project) | ||||||||
| Series A 144A 5.00% 12/1/50 (AMT) # | 1,000,000 | $ | 735,370 | |||||
| 735,370 | ||||||||
| Education Revenue Bonds — 20.78% | ||||||||
| Bethel Charter School Lease Revenue | ||||||||
| (Spectrum High School Project) | ||||||||
| Series A 4.00% 7/1/32 | 840,000 | 750,070 | ||||||
| Series A 4.25% 7/1/47 | 1,550,000 | 1,190,369 | ||||||
| Series A 4.375% 7/1/52 | 400,000 | 304,056 | ||||||
| Brooklyn Park Charter School Lease Revenue | ||||||||
| (Prairie Seeds Academy Project) | ||||||||
| Series A 5.00% 3/1/34 | 2,260,000 | 2,135,565 | ||||||
| Series A 5.00% 3/1/39 | 385,000 | 350,550 | ||||||
| Cologne Charter School Lease Revenue | ||||||||
| (Cologne Academy Project) | ||||||||
| Series A 5.00% 7/1/34 | 250,000 | 242,410 | ||||||
| Series A 5.00% 7/1/45 | 1,705,000 | 1,565,241 | ||||||
| Deephaven Charter School Lease Revenue | ||||||||
| (Eagle Ridge Academy Project) | ||||||||
| Series A 5.50% 7/1/50 | 2,000,000 | 2,000,680 | ||||||
| Duluth Housing & Redevelopment Authority Revenue | ||||||||
| (Duluth Public Schools Academy Project) | ||||||||
| Series A 5.00% 11/1/38 | 700,000 | 657,916 | ||||||
| Series A 5.00% 11/1/48 | 2,800,000 | 2,485,560 | ||||||
| Duluth Independent School District No. 709 Certificates of Participation | ||||||||
| Series B 5.00% 2/1/28 | 350,000 | 378,511 | ||||||
| Forest Lake Charter School Lease Revenue | ||||||||
| (Lakes International Language Academy Project) | ||||||||
| Series A 5.25% 8/1/43 | 400,000 | 385,900 | ||||||
| Series A 5.375% 8/1/50 | 1,690,000 | 1,623,228 | ||||||
| Series A 5.50% 8/1/36 | 580,000 | 582,389 | ||||||
| Series A 5.75% 8/1/44 | 1,190,000 | 1,193,606 | ||||||
| Ham Lake Charter School Lease Revenue | ||||||||
| (Davinci Academy Project) | ||||||||
| Series A 5.00% 7/1/36 | 765,000 | 744,628 | ||||||
| Series A 5.00% 7/1/47 | 2,290,000 | 2,052,527 | ||||||
| Hugo Charter School Lease Revenue | ||||||||
| (Noble Academy Project) | ||||||||
| Series A 5.00% 7/1/34 | 580,000 | 565,755 | ||||||
7
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Education Revenue Bonds (continued) | ||||||||
| Hugo Charter School Lease Revenue | ||||||||
| (Noble Academy Project) | ||||||||
| Series A 5.00% 7/1/44 | 2,545,000 | $ | 2,332,365 | |||||
| Minneapolis Charter School Lease Revenue | ||||||||
| (Cyber Village Academy Project) | ||||||||
| Series A 5.25% 6/1/42 | 750,000 | 714,158 | ||||||
| Series A 5.50% 6/1/57 | 500,000 | 474,890 | ||||||
| (Hiawatha Academies Project) | ||||||||
| Series A 144A 5.00% 7/1/32 # | 300,000 | 288,084 | ||||||
| Series A 144A 5.375% 7/1/42 # | 880,000 | 821,295 | ||||||
| Series A 144A 5.50% 7/1/52 # | 1,440,000 | 1,322,525 | ||||||
| Series A 144A 5.50% 7/1/57 # | 1,120,000 | 1,016,310 | ||||||
| Minneapolis Student Housing Revenue | ||||||||
| (Riverton Community Housing Project) | ||||||||
| 5.25% 8/1/39 | 470,000 | 471,180 | ||||||
| 5.50% 8/1/49 | 2,260,000 | 2,266,260 | ||||||
| Minnesota Higher Education Facilities Authority Revenue | ||||||||
| Series A 5.00% 10/1/32 | 715,000 | 763,112 | ||||||
| (Bethel University) | ||||||||
| 5.00% 5/1/37 | 2,750,000 | 2,605,350 | ||||||
| 5.00% 5/1/47 | 250,000 | 219,453 | ||||||
| (Carleton College) | ||||||||
| 4.00% 3/1/35 | 1,000,000 | 1,021,370 | ||||||
| 4.00% 3/1/36 | 415,000 | 420,756 | ||||||
| 5.00% 3/1/44 | 1,275,000 | 1,344,755 | ||||||
| (College of St. Benedict) | ||||||||
| Series 8-K 4.00% 3/1/43 | 1,000,000 | 902,210 | ||||||
| (College of St. Scholastica) | ||||||||
| 4.00% 12/1/29 | 280,000 | 274,506 | ||||||
| 4.00% 12/1/30 | 290,000 | 283,202 | ||||||
| 4.00% 12/1/33 | 500,000 | 477,695 | ||||||
| 4.00% 12/1/34 | 500,000 | 471,655 | ||||||
| 4.00% 12/1/40 | 1,200,000 | 1,045,032 | ||||||
| (Gustavus Adolphus College) | ||||||||
| 5.00% 10/1/47 | 6,600,000 | 6,735,630 | ||||||
| (St. Catherine University) | ||||||||
| Series A 4.00% 10/1/36 | 925,000 | 898,730 | ||||||
| Series A 5.00% 10/1/35 | 875,000 | 920,281 | ||||||
| Series A 5.00% 10/1/45 | 2,120,000 | 2,161,467 | ||||||
| (St. John’s University) | ||||||||
| Series 8-I 5.00% 10/1/32 | 500,000 | 520,400 | ||||||
8
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Education Revenue Bonds (continued) | ||||||||
| Minnesota Higher Education Facilities Authority Revenue | ||||||||
| (St. John’s University) | ||||||||
| Series 8-I 5.00% 10/1/33 | 250,000 | $ | 259,933 | |||||
| (St. Olaf College) | ||||||||
| 3.00% 10/1/38 | 1,000,000 | 840,070 | ||||||
| 4.00% 10/1/50 | 565,000 | 519,766 | ||||||
| Series 8-G 5.00% 12/1/31 | 670,000 | 696,499 | ||||||
| Series 8-G 5.00% 12/1/32 | 670,000 | 696,318 | ||||||
| Series 8-N 4.00% 10/1/35 | 500,000 | 502,730 | ||||||
| (Trustees of the Hamline University) | ||||||||
| Series B 5.00% 10/1/37 | 955,000 | 967,272 | ||||||
| Series B 5.00% 10/1/38 | 1,000,000 | 1,010,700 | ||||||
| Series B 5.00% 10/1/39 | 940,000 | 948,733 | ||||||
| Series B 5.00% 10/1/40 | 625,000 | 629,750 | ||||||
| Series B 5.00% 10/1/47 | 1,060,000 | 1,063,487 | ||||||
| (University of St. Thomas) | ||||||||
| 4.00% 10/1/36 | 1,450,000 | 1,452,654 | ||||||
| 4.00% 10/1/37 | 750,000 | 741,375 | ||||||
| 4.00% 10/1/44 | 1,800,000 | 1,676,088 | ||||||
| 5.00% 10/1/40 | 2,395,000 | 2,507,517 | ||||||
| Series 8-L 5.00% 4/1/35 | 1,250,000 | 1,310,525 | ||||||
| Series A 4.00% 10/1/34 | 400,000 | 407,008 | ||||||
| Series A 4.00% 10/1/36 | 500,000 | 500,660 | ||||||
| Series A 5.00% 10/1/35 | 1,720,000 | 1,869,330 | ||||||
| Minnesota Office of Higher Education Revenue | ||||||||
| (Senior Supplemental Student Loan Program) | ||||||||
| 2.65% 11/1/38 (AMT) | 715,000 | 585,056 | ||||||
| Minnesota State Colleges & Universities Revenue | ||||||||
| Series A 5.00% 10/1/26 | 4,990,000 | 5,335,009 | ||||||
| Otsego Charter School Lease Revenue | ||||||||
| (Kaleidoscope Charter School) | ||||||||
| Series A 5.00% 9/1/34 | 520,000 | 496,777 | ||||||
| Series A 5.00% 9/1/44 | 1,165,000 | 1,030,431 | ||||||
| St. Cloud Charter School Lease Revenue | ||||||||
| (Stride Academy Project) | ||||||||
| Series A 5.00% 4/1/46 | 875,000 | 644,201 | ||||||
| St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
| (Academia Cesar Chavez School Project) | ||||||||
| Series A 5.25% 7/1/50 | 1,945,000 | 1,627,245 | ||||||
| (Great River School Project) | ||||||||
| Series A 144A 4.75% 7/1/29 # | 210,000 | 207,054 | ||||||
9
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Education Revenue Bonds (continued) | ||||||||
| St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
| (Great River School Project) | ||||||||
| Series A 144A 5.50% 7/1/52 # | 735,000 | $ | 722,329 | |||||
| (Hmong College Preparatory Academy Project) | ||||||||
| Series A 5.00% 9/1/43 | 250,000 | 231,272 | ||||||
| Series A 5.75% 9/1/46 | 1,000,000 | 1,001,620 | ||||||
| (Nova Classical Academy Project) | ||||||||
| Series A 4.00% 9/1/36 | 500,000 | 433,515 | ||||||
| Series A 4.125% 9/1/47 | 1,750,000 | 1,392,387 | ||||||
| (Twin Cities Academy Project) | ||||||||
| Series A 5.30% 7/1/45 | 1,440,000 | 1,352,074 | ||||||
| University of Minnesota | ||||||||
| Series A 5.00% 4/1/34 | 3,040,000 | 3,178,320 | ||||||
| Series A 5.00% 9/1/34 | 1,125,000 | 1,224,349 | ||||||
| Series A 5.00% 4/1/35 | 3,175,000 | 3,312,858 | ||||||
| Series A 5.00% 4/1/36 | 2,650,000 | 2,763,500 | ||||||
| Series A 5.00% 4/1/37 | 1,125,000 | 1,171,845 | ||||||
| Series A 5.00% 11/1/39 | 5,880,000 | 6,462,414 | ||||||
| Series A 5.00% 9/1/40 | 1,560,000 | 1,657,562 | ||||||
| Series A 5.00% 9/1/41 | 750,000 | 796,845 | ||||||
| Series A 5.00% 9/1/42 | 1,000,000 | 1,061,530 | ||||||
| 105,270,240 | ||||||||
| Electric Revenue Bonds — 8.37% | ||||||||
| Central Minnesota Municipal Power Agency Revenue | ||||||||
| (Brookings - Southeast Twin Cities Transmission Project) | ||||||||
| 4.00% 1/1/42 (AGM) | 340,000 | 331,554 | ||||||
| Chaska Electric Revenue | ||||||||
| (Generating Facilities) | ||||||||
| Series A 5.00% 10/1/30 | 1,150,000 | 1,201,969 | ||||||
| Minnesota Municipal Power Agency Electric Revenue | ||||||||
| 4.00% 10/1/41 | 1,000,000 | 973,200 | ||||||
| 5.00% 10/1/29 | 395,000 | 405,594 | ||||||
| 5.00% 10/1/30 | 500,000 | 513,255 | ||||||
| 5.00% 10/1/33 | 1,205,000 | 1,233,582 | ||||||
| 5.00% 10/1/47 | 2,000,000 | 2,071,420 | ||||||
| Series A 5.00% 10/1/30 | 1,060,000 | 1,088,101 | ||||||
| Series A 5.00% 10/1/34 | 750,000 | 767,790 | ||||||
| Series A 5.00% 10/1/35 | 1,525,000 | 1,560,456 | ||||||
10
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Electric Revenue Bonds (continued) | ||||||||
| Northern Municipal Power Agency Electric System Revenue | ||||||||
| 5.00% 1/1/27 | 540,000 | $ | 565,731 | |||||
| 5.00% 1/1/28 | 350,000 | 367,066 | ||||||
| 5.00% 1/1/28 | 210,000 | 224,513 | ||||||
| 5.00% 1/1/29 | 585,000 | 614,174 | ||||||
| 5.00% 1/1/29 | 220,000 | 235,384 | ||||||
| 5.00% 1/1/30 | 520,000 | 545,787 | ||||||
| 5.00% 1/1/31 | 200,000 | 213,106 | ||||||
| 5.00% 1/1/32 | 210,000 | 223,257 | ||||||
| 5.00% 1/1/35 | 160,000 | 168,760 | ||||||
| 5.00% 1/1/36 | 180,000 | 188,905 | ||||||
| 5.00% 1/1/41 | 400,000 | 412,516 | ||||||
| Series A 5.00% 1/1/26 | 425,000 | 425,578 | ||||||
| Series A 5.00% 1/1/31 | 520,000 | 520,645 | ||||||
| Puerto Rico Electric Power Authority Revenue | ||||||||
| Series A 5.05% 7/1/42 ‡ | 430,000 | 299,925 | ||||||
| Series AAA 5.25% 7/1/25 ‡ | 250,000 | 174,063 | ||||||
| Series CCC 5.25% 7/1/27 ‡ | 1,875,000 | 1,307,812 | ||||||
| Series WW 5.00% 7/1/28 ‡ | 1,775,000 | 1,233,625 | ||||||
| Series WW 5.25% 7/1/33 ‡ | 1,250,000 | 878,125 | ||||||
| Series XX 4.75% 7/1/26 ‡ | 260,000 | 180,050 | ||||||
| Series XX 5.25% 7/1/40 ‡ | 750,000 | 526,875 | ||||||
| Series XX 5.75% 7/1/36 ‡ | 925,000 | 654,437 | ||||||
| Series ZZ 4.75% 7/1/27 ‡ | 210,000 | 145,425 | ||||||
| Series ZZ 5.25% 7/1/24 ‡ | 350,000 | 243,688 | ||||||
| Rochester Electric Utility Revenue | ||||||||
| Series A 5.00% 12/1/42 | 1,395,000 | 1,450,214 | ||||||
| Series A 5.00% 12/1/47 | 2,265,000 | 2,341,852 | ||||||
| Southern Minnesota Municipal Power Agency Revenue | ||||||||
| Series A 5.00% 1/1/41 | 1,310,000 | 1,355,536 | ||||||
| Series A 5.00% 1/1/42 | 1,500,000 | 1,608,150 | ||||||
| Series A 5.00% 1/1/46 | 2,000,000 | 2,054,900 | ||||||
| Series A 5.00% 1/1/47 | 3,130,000 | 3,334,326 | ||||||
| (Capital Appreciation) | ||||||||
| Series A 4.965% 1/1/25 (NATL) ^ | 5,000,000 | 4,678,100 | ||||||
| St. Paul Housing & Redevelopment Authority | ||||||||
| Series A 4.00% 10/1/30 | 1,235,000 | 1,275,175 | ||||||
| Series A 4.00% 10/1/31 | 885,000 | 909,603 | ||||||
| Series A 4.00% 10/1/33 | 365,000 | 372,734 | ||||||
11
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Electric Revenue Bonds (continued) | ||||||||
| Western Minnesota Municipal Power Agency Revenue | ||||||||
| Series A 5.00% 1/1/30 | 1,000,000 | $ | 1,133,470 | |||||
| (Red Rock Hydroelectric Project) | ||||||||
| Series A 5.00% 1/1/49 | 1,300,000 | 1,378,325 | ||||||
| 42,388,753 | ||||||||
| Healthcare Revenue Bonds — 29.64% | ||||||||
| Anoka Healthcare & Housing Facilities Revenue | ||||||||
| (The Homestead at Anoka Project) | ||||||||
| 5.375% 11/1/34 | 320,000 | 306,730 | ||||||
| 5.125% 11/1/49 | 1,100,000 | 919,160 | ||||||
| Apple Valley Senior Housing Revenue | ||||||||
| (PHS Apple Valley Senior Housing Orchard Path Phase II Project) | ||||||||
| 4.00% 9/1/51 | 500,000 | 387,920 | ||||||
| 4.00% 9/1/61 | 500,000 | 368,620 | ||||||
| (PHS Senior Housing, Inc. Orchard Path Project) | ||||||||
| 5.00% 9/1/43 | 465,000 | 451,645 | ||||||
| 5.00% 9/1/58 | 3,220,000 | 2,998,271 | ||||||
| Apple Valley Senior Living Revenue | ||||||||
| (Senior Living LLC Project) | ||||||||
| 2nd Tier Series B 5.00% 1/1/47 | 1,640,000 | 953,037 | ||||||
| 2nd Tier Series B 5.25% 1/1/37 | 480,000 | 334,704 | ||||||
| 4th Tier Series D 7.00% 1/1/37 | 1,585,000 | 1,081,762 | ||||||
| 4th Tier Series D 7.25% 1/1/52 | 2,580,000 | 1,603,264 | ||||||
| Bethel Housing & Health Care Facilities Revenue | ||||||||
| (Benedictine Health System – St. Peter Communities Project) | ||||||||
| Series A 5.50% 12/1/48 | 2,350,000 | 1,898,588 | ||||||
| Bethel Senior Housing Revenue | ||||||||
| (The Lodge at the Lakes at Stillwater Project) | ||||||||
| 5.00% 6/1/38 | 450,000 | 409,176 | ||||||
| 5.00% 6/1/48 | 1,000,000 | 846,660 | ||||||
| 5.00% 6/1/53 | 2,450,000 | 2,015,958 | ||||||
| Center City Health Care Facilities Revenue | ||||||||
| (Hazelden Betty Ford Foundation Project) | ||||||||
| 4.00% 11/1/34 | 500,000 | 477,475 | ||||||
| 4.00% 11/1/41 | 2,000,000 | 1,792,680 | ||||||
| 4.50% 11/1/34 | 1,700,000 | 1,701,241 | ||||||
| 5.00% 11/1/24 | 600,000 | 610,404 | ||||||
| 5.00% 11/1/26 | 500,000 | 507,860 | ||||||
12
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| Chatfield Healthcare & Housing Facilities Revenue | ||||||||
| (Chosen Valley Care Center Project) | ||||||||
| 5.00% 9/1/44 | 500,000 | $ | 414,790 | |||||
| Crookston Health Care Facilities Revenue | ||||||||
| (Riverview Health Project) | ||||||||
| 5.00% 5/1/38 | 100,000 | 88,214 | ||||||
| 5.00% 5/1/44 | 1,500,000 | 1,272,075 | ||||||
| 5.00% 5/1/51 | 1,585,000 | 1,295,183 | ||||||
| Dakota County Community Development Agency Senior Housing Revenue | ||||||||
| (Walker Highview Hills Project) | ||||||||
| Series A 144A 5.00% 8/1/36 # | 280,000 | 271,211 | ||||||
| Series A 144A 5.00% 8/1/46 # | 2,380,000 | 2,154,590 | ||||||
| Deephaven Housing & Healthcare Revenue | ||||||||
| (St. Therese Senior Living Project) | ||||||||
| Series A 5.00% 4/1/38 | 730,000 | 641,021 | ||||||
| Series A 5.00% 4/1/40 | 705,000 | 608,584 | ||||||
| Series A 5.00% 4/1/48 | 315,000 | 255,906 | ||||||
| Duluth Economic Development Authority Revenue | ||||||||
| (Essentia Health Obligated Group) | ||||||||
| Series A 4.25% 2/15/43 | 2,000,000 | 1,913,300 | ||||||
| Series A 5.00% 2/15/53 | 2,850,000 | 2,879,925 | ||||||
| Series A 5.00% 2/15/58 | 4,100,000 | 4,141,246 | ||||||
| Series A 5.25% 2/15/58 | 7,250,000 | 7,430,960 | ||||||
| (St. Luke’s Hospital of Duluth Obligated Group) | ||||||||
| Series A 3.00% 6/15/44 | 850,000 | 582,760 | ||||||
| Series A 4.00% 6/15/34 | 215,000 | 206,707 | ||||||
| Series A 4.00% 6/15/36 | 590,000 | 547,390 | ||||||
| Series A 4.00% 6/15/36 | 400,000 | 371,112 | ||||||
| Series A 4.00% 6/15/37 | 380,000 | 345,960 | ||||||
| Series A 4.00% 6/15/38 | 150,000 | 134,529 | ||||||
| Series A 4.00% 6/15/39 | 150,000 | 132,894 | ||||||
| Series B 5.25% 6/15/52 | 500,000 | 503,095 | ||||||
| Glencoe Health Care Facilities Revenue | ||||||||
| (Glencoe Regional Health Services Project) | ||||||||
| 4.00% 4/1/24 | 500,000 | 499,975 | ||||||
| 4.00% 4/1/25 | 660,000 | 651,987 | ||||||
| 4.00% 4/1/31 | 60,000 | 58,945 | ||||||
| Hayward Health Care Facilities Revenue | ||||||||
| (American Baptist Homes Midwest Obligated Group) | ||||||||
| 5.375% 8/1/34 | 660,000 | 569,593 | ||||||
13
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| Hayward Health Care Facilities Revenue | ||||||||
| (American Baptist Homes Midwest Obligated Group) | ||||||||
| 5.75% 2/1/44 | 500,000 | $ | 411,035 | |||||
| (St. John’s Lutheran Home of Albert Lea Project) | ||||||||
| Series A 5.375% 10/1/44 | 400,000 | 262,772 | ||||||
| Maple Grove Health Care Facilities Revenue | ||||||||
| (Maple Grove Hospital Corporation) | ||||||||
| 4.00% 5/1/37 | 2,000,000 | 1,839,640 | ||||||
| 5.00% 5/1/27 | 1,400,000 | 1,466,052 | ||||||
| 5.00% 5/1/29 | 1,000,000 | 1,047,060 | ||||||
| 5.00% 5/1/30 | 850,000 | 890,477 | ||||||
| 5.00% 5/1/31 | 500,000 | 522,865 | ||||||
| 5.00% 5/1/32 | 500,000 | 520,555 | ||||||
| (North Memorial Health Care) | ||||||||
| 4.00% 9/1/35 | 350,000 | 331,121 | ||||||
| 5.00% 9/1/31 | 1,000,000 | 1,028,160 | ||||||
| 5.00% 9/1/32 | 1,000,000 | 1,025,350 | ||||||
| Maple Plain Senior Housing & Health Care Revenue | ||||||||
| (Haven Homes Project) | ||||||||
| 5.00% 7/1/54 | 3,500,000 | 2,852,465 | ||||||
| Minneapolis Health Care System Revenue | ||||||||
| (Allina Health System) | ||||||||
| 4.00% 11/15/40 | 4,500,000 | 4,347,000 | ||||||
| (Fairview Health Services) | ||||||||
| Series A 4.00% 11/15/48 | 5,600,000 | 4,922,232 | ||||||
| Series A 5.00% 11/15/33 | 500,000 | 516,210 | ||||||
| Series A 5.00% 11/15/34 | 500,000 | 514,910 | ||||||
| Series A 5.00% 11/15/35 | 1,500,000 | 1,578,420 | ||||||
| Series A 5.00% 11/15/44 | 1,000,000 | 1,011,230 | ||||||
| Series A 5.00% 11/15/49 | 6,615,000 | 6,715,548 | ||||||
| Minneapolis Senior Housing & Healthcare Revenue | ||||||||
| (Ecumen-Abiitan Mill City Project) | ||||||||
| 5.00% 11/1/35 | 500,000 | 456,455 | ||||||
| 5.25% 11/1/45 | 1,950,000 | 1,741,136 | ||||||
| 5.375% 11/1/50 | 455,000 | 407,798 | ||||||
| Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue | ||||||||
| (Allina Health System) | ||||||||
| Series A 5.00% 11/15/28 | 1,550,000 | 1,670,900 | ||||||
| Rochester Health Care & Housing Revenue | ||||||||
| (The Homestead at Rochester Project) | ||||||||
| Series A 6.875% 12/1/48 |
3,230,000 | 3,238,689 | ||||||
14
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| Rochester Health Care Facilities Revenue | ||||||||
| (Mayo Clinic) | ||||||||
| 4.00% 11/15/39 | 7,850,000 | $ | 7,979,996 | |||||
| 5.00% 11/15/57 | 7,250,000 | 7,786,282 | ||||||
| Series B 5.00% 11/15/36 | 1,950,000 | 2,277,678 | ||||||
| Sartell Health Care & Housing Facilities Revenue | ||||||||
| (Country Manor Campus LLC Project) | ||||||||
| Series A 5.00% 9/1/32 | 1,000,000 | 944,990 | ||||||
| Series A 5.00% 9/1/35 | 250,000 | 227,005 | ||||||
| Series A 5.30% 9/1/37 | 1,200,000 | 1,112,832 | ||||||
| Sauk Rapids Health Care Housing Facilities Revenue | ||||||||
| (Good Shepherd Lutheran Home) | ||||||||
| 5.125% 1/1/39 | 1,350,000 | 1,149,012 | ||||||
| Shakopee Health Care Facilities Revenue | ||||||||
| (St. Francis Regional Medical Center) | ||||||||
| 4.00% 9/1/31 | 915,000 | 915,558 | ||||||
| 5.00% 9/1/24 | 575,000 | 585,603 | ||||||
| 5.00% 9/1/25 | 750,000 | 763,477 | ||||||
| 5.00% 9/1/26 | 575,000 | 585,545 | ||||||
| 5.00% 9/1/27 | 405,000 | 412,403 | ||||||
| 5.00% 9/1/28 | 425,000 | 432,642 | ||||||
| 5.00% 9/1/29 | 425,000 | 432,591 | ||||||
| 5.00% 9/1/34 | 730,000 | 738,052 | ||||||
| St. Cloud Health Care Revenue | ||||||||
| (Centracare Health System Project) | ||||||||
| 4.00% 5/1/49 | 5,315,000 | 4,806,727 | ||||||
| 5.00% 5/1/48 | 4,690,000 | 4,787,552 | ||||||
| Series A 4.00% 5/1/37 | 1,765,000 | 1,712,897 | ||||||
| Series A 5.00% 5/1/46 | 5,275,000 | 5,368,156 | ||||||
| St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
| (Amherst H. Wilder Foundation Project) | ||||||||
| Series A 5.00% 12/1/30 | 300,000 | 306,351 | ||||||
| (Episcopal Homes Project) | ||||||||
| 5.125% 5/1/48 | 3,100,000 | 2,571,729 | ||||||
| (Fairview Health Services) | ||||||||
| Series A 4.00% 11/15/43 | 2,450,000 | 2,208,920 | ||||||
| Series A 5.00% 11/15/47 | 1,560,000 | 1,581,559 | ||||||
| (HealthPartners Obligated Group Project) | ||||||||
| Series A 5.00% 7/1/33 | 4,760,000 | 4,912,511 | ||||||
15
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
| (Healthpartners Obligated Group) | ||||||||
| Series A 5.00% 7/1/30 | 2,200,000 | $ | 2,277,044 | |||||
| (Marian Center Project) | ||||||||
| Series A 5.375% 5/1/43 | 500,000 | 414,740 | ||||||
| St. Paul Housing & Redevelopment Authority Multifamily Housing Revenue | ||||||||
| (Marian Center Project) | ||||||||
| Series A 5.30% 11/1/30 | 500,000 | 465,035 | ||||||
| Wayzata Senior Housing Revenue | ||||||||
| (Folkestone Senior Living Community) | ||||||||
| 3.75% 8/1/36 | 500,000 | 425,385 | ||||||
| 4.00% 8/1/44 | 800,000 | 641,440 | ||||||
| 5.00% 8/1/49 | 1,000,000 | 917,710 | ||||||
| 5.00% 8/1/54 | 875,000 | 791,779 | ||||||
| West St. Paul Housing & Health Care Facilities Revenue | ||||||||
| (Walker Westwood Ridge Campus Project) | ||||||||
| 4.50% 11/1/40 | 250,000 | 219,898 | ||||||
| 4.75% 11/1/52 | 750,000 | 632,557 | ||||||
| Woodbury Housing & Redevelopment Authority Revenue | ||||||||
| (St. Therese of Woodbury) | ||||||||
| 5.125% 12/1/44 | 2,105,000 | 1,811,837 | ||||||
| 150,152,680 | ||||||||
| Housing Revenue Bonds — 0.50% | ||||||||
| Minnesota Housing Finance Agency | ||||||||
| Series I 2.00% 7/1/40 | 630,000 | 462,136 | ||||||
| Series I 2.20% 1/1/51 | 1,195,000 | 808,406 | ||||||
| Northwest Multi-County Housing & Redevelopment Authority | ||||||||
| (Pooled Housing Program) | ||||||||
| 5.50% 7/1/45 | 1,330,000 | 1,269,073 | ||||||
| 2,539,615 | ||||||||
| Industrial Development Revenue/Pollution Control Revenue Bonds — 1.98% | ||||||||
| Minnesota Municipal Gas Agency Revenue | ||||||||
| (Subordinate) | ||||||||
| Series A 4.00% 12/1/52 ● | 2,000,000 | 2,006,420 | ||||||
| St. Paul Port Authority Solid Waste Disposal Revenue | ||||||||
| (Gerdau St. Paul Steel Mill Project) | ||||||||
| Series 7 144A 4.50% 10/1/37 # | 8,665,000 | 8,016,511 | ||||||
| 10,022,931 | ||||||||
16
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Lease Revenue Bonds — 1.99% | ||||||||
| Hibbing Independent School District No. 701 | ||||||||
| Series A 3.00% 3/1/41 | 1,250,000 | $ | 1,041,487 | |||||
| Minnesota General Fund Revenue | ||||||||
| (Appropriations) | ||||||||
| Series A 5.00% 6/1/38 | 1,250,000 | 1,252,425 | ||||||
| Series A 5.00% 6/1/43 | 3,835,000 | 3,840,561 | ||||||
| Minnesota Housing Finance Agency | ||||||||
| (State Appropriation Housing Infrastructure) | ||||||||
| Series A 4.00% 8/1/33 | 655,000 | 682,143 | ||||||
| Series C 5.00% 8/1/34 | 1,565,000 | 1,597,270 | ||||||
| Series C 5.00% 8/1/35 | 1,645,000 | 1,675,499 | ||||||
| 10,089,385 | ||||||||
| Local General Obligation Bonds — 13.15% | ||||||||
| Anoka-Hennepin Independent School District No. 11 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 3.00% 2/1/43 | 750,000 | 625,822 | ||||||
| Series A 3.00% 2/1/45 | 2,600,000 | 2,120,794 | ||||||
| Blooming Prairie Independent School District No. 756 | ||||||||
| (School Building) | ||||||||
| Series A 3.00% 2/1/33 | 200,000 | 199,882 | ||||||
| Brainerd Independent School District No. 181 | ||||||||
| (School Building) | ||||||||
| Series A 4.00% 2/1/38 | 1,500,000 | 1,528,785 | ||||||
| Series A 4.00% 2/1/42 | 3,500,000 | 3,537,975 | ||||||
| Burnsville-Eagan-Savage Independent School District No. 191 | ||||||||
| (Alternative Facilities) | ||||||||
| Series A 4.00% 2/1/28 | 920,000 | 936,707 | ||||||
| Series A 4.00% 2/1/29 | 1,800,000 | 1,835,046 | ||||||
| Cass Lake-Bena Independent School District No. 115 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 4.00% 2/1/41 | 915,000 | 902,611 | ||||||
| Series A 4.00% 2/1/42 | 2,260,000 | 2,216,111 | ||||||
| Series A 4.00% 2/1/43 | 1,925,000 | 1,874,930 | ||||||
| Chaska Independent School District No. 112 | ||||||||
| (School Building) | ||||||||
| Series A 5.00% 2/1/27 | 1,905,000 | 2,012,652 | ||||||
17
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Local General Obligation Bonds (continued) | ||||||||
| City of Minneapolis | ||||||||
| (Green Bonds) | ||||||||
| 3.00% 12/1/40 | 1,875,000 | $ | 1,618,069 | |||||
| 3.00% 12/1/42 | 3,400,000 | 2,846,480 | ||||||
| Duluth | ||||||||
| (DECC Improvement) | ||||||||
| Series A 5.00% 2/1/32 | 1,000,000 | 1,047,100 | ||||||
| Series A 5.00% 2/1/33 | 3,585,000 | 3,744,712 | ||||||
| Duluth Independent School District No. 709 | ||||||||
| Series A 4.00% 2/1/28 | 1,250,000 | 1,270,650 | ||||||
| Elk River Independent School District No. 728 | ||||||||
| Series A 3.00% 2/1/40 | 1,555,000 | 1,326,757 | ||||||
| Hennepin County | ||||||||
| Series A 5.00% 12/1/36 | 940,000 | 993,674 | ||||||
| Series A 5.00% 12/1/37 | 2,850,000 | 3,090,369 | ||||||
| Series A 5.00% 12/1/37 | 1,000,000 | 1,056,380 | ||||||
| Series A 5.00% 12/1/38 | 3,310,000 | 3,576,257 | ||||||
| Series B 5.00% 12/1/30 | 1,000,000 | 1,071,670 | ||||||
| Series C 5.00% 12/1/28 | 1,500,000 | 1,687,035 | ||||||
| Series C 5.00% 12/1/30 | 1,245,000 | 1,334,229 | ||||||
| Series C 5.00% 12/1/37 | 3,000,000 | 3,169,140 | ||||||
| Hennepin County Regional Railroad Authority | ||||||||
| Series D 5.00% 12/1/30 | 1,865,000 | 2,177,313 | ||||||
| Minneapolis Special School District No. 1 | ||||||||
| Series A 4.00% 2/1/37 | 600,000 | 609,036 | ||||||
| Series A 4.00% 2/1/38 | 625,000 | 628,844 | ||||||
| Series B 4.00% 2/1/36 | 945,000 | 968,209 | ||||||
| Series B 4.00% 2/1/37 | 1,255,000 | 1,273,900 | ||||||
| Series B 4.00% 2/1/38 | 1,305,000 | 1,313,026 | ||||||
| Series B 4.00% 2/1/39 | 600,000 | 609,636 | ||||||
| Series D 5.00% 2/1/33 | 1,710,000 | 1,956,958 | ||||||
| Mounds View Independent School District No. 621 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 4.00% 2/1/43 | 3,000,000 | 3,020,040 | ||||||
| Mountain Iron-Buhl Independent School District No. 712 | ||||||||
| (School Building) | ||||||||
| Series A 4.00% 2/1/26 | 1,315,000 | 1,336,671 | ||||||
| St. Michael-Albertville Independent School District No. 885 | ||||||||
| (School Building) | ||||||||
| Series A 5.00% 2/1/27 | 1,865,000 | 1,960,805 | ||||||
18
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Local General Obligation Bonds (continued) | ||||||||
| St. Paul Independent School District No. 625 | ||||||||
| (School Building) | ||||||||
| Series D 4.00% 2/1/32 | 200,000 | $ | 209,404 | |||||
| Wayzata Independent School District No. 284 | ||||||||
| (School Building) | ||||||||
| Series A 5.00% 2/1/28 | 1,950,000 | 2,115,107 | ||||||
| White Bear Lake Independent School District No. 624 | ||||||||
| Series A 3.00% 2/1/42 | 3,400,000 | 2,802,960 | ||||||
| 66,605,746 | ||||||||
| Pre-Refunded/Escrowed to Maturity Bonds — 2.19% | ||||||||
| Rochester Electric Utility Revenue | ||||||||
| Series B 5.00% 12/1/31-23 § | 1,365,000 | 1,383,973 | ||||||
| Series B 5.00% 12/1/33-23 § | 300,000 | 304,170 | ||||||
| Rochester Health Care Facilities Revenue | ||||||||
| (Olmsted Medical Center Project) | ||||||||
| 5.00% 7/1/33-23 § | 650,000 | 653,673 | ||||||
| St. Paul Housing & Redevelopment Authority Hospital Facility Revenue | ||||||||
| (Healtheast Care System Project) | ||||||||
| Series A 5.00% 11/15/29-25 § | 910,000 | 954,481 | ||||||
| Series A 5.00% 11/15/30-25 § | 670,000 | 702,749 | ||||||
| Western Minnesota Municipal Power Agency Revenue | ||||||||
| Series A 5.00% 1/1/34-24 § | 4,000,000 | 4,061,760 | ||||||
| Series A 5.00% 1/1/46-24 § | 3,000,000 | 3,046,320 | ||||||
| 11,107,126 | ||||||||
| Special Tax Revenue Bonds — 4.66% | ||||||||
| Commonwealth of Puerto Rico | ||||||||
| 3.799% 11/1/51 ● | 3,501,999 | 1,199,435 | ||||||
| (Restructured) | ||||||||
| 3.171% 11/1/43 ● | 1,169,897 | 504,518 | ||||||
| Minneapolis Revenue | ||||||||
| (YMCA Greater Twin Cities Project) | ||||||||
| 4.00% 6/1/30 | 250,000 | 254,970 | ||||||
| Puerto Rico Sales Tax Financing Revenue | ||||||||
| (Restructured) | ||||||||
| Series A-1 0.098% 7/1/46 ^ | 2,750,000 | 704,770 | ||||||
| Series A-1 0.528% 7/1/51 ^ | 31,552,000 | 5,953,231 | ||||||
| Series A-1 4.75% 7/1/53 | 12,700,000 | 11,384,026 | ||||||
| Series A-1 5.00% 7/1/58 | 1,500,000 | 1,391,700 | ||||||
| St. Paul Sales Tax Revenue | ||||||||
| Series G 5.00% 11/1/30 | 655,000 | 671,624 | ||||||
19
Schedules of investments
Delaware Tax-Free Minnesota Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Special Tax Revenue Bonds (continued) | ||||||||
| St. Paul Sales Tax Revenue | ||||||||
| Series G 5.00% 11/1/31 | 1,500,000 | $ | 1,537,080 | |||||
| 23,601,354 | ||||||||
| State General Obligation Bonds — 7.82% | ||||||||
| Commonwealth of Puerto Rico | ||||||||
| (Restructured) | ||||||||
| Series A-1 4.00% 7/1/37 | 191,584 | 163,845 | ||||||
| Series A-1 4.00% 7/1/41 | 988,988 | 816,963 | ||||||
| Minnesota State | ||||||||
| Series A 4.00% 9/1/38 | 625,000 | 649,631 | ||||||
| Series A 5.00% 8/1/30 | 1,250,000 | 1,401,163 | ||||||
| Series A 5.00% 8/1/35 | 2,975,000 | 3,280,860 | ||||||
| Series A 5.00% 8/1/39 | 1,000,000 | 1,141,460 | ||||||
| Series A 5.00% 8/1/41 | 1,500,000 | 1,693,560 | ||||||
| (State Trunk Highway) | ||||||||
| Series E 5.00% 10/1/26 | 4,875,000 | 5,234,336 | ||||||
| (Various Purposes) | ||||||||
| Series A 4.00% 9/1/40 | 1,410,000 | 1,452,497 | ||||||
| Series A 5.00% 8/1/27 | 2,875,000 | 3,010,096 | ||||||
| Series A 5.00% 8/1/29 | 1,000,000 | 1,046,270 | ||||||
| Series A 5.00% 8/1/32 | 3,875,000 | 3,980,826 | ||||||
| Series A 5.00% 8/1/33 | 2,075,000 | 2,314,061 | ||||||
| Series A 5.00% 10/1/33 | 1,000,000 | 1,098,090 | ||||||
| Series A 5.00% 8/1/35 | 500,000 | 560,050 | ||||||
| Series A 5.00% 8/1/38 | 2,450,000 | 2,670,010 | ||||||
| Series D 5.00% 8/1/26 | 6,000,000 | 6,419,340 | ||||||
| Series D 5.00% 8/1/27 | 2,525,000 | 2,691,297 | ||||||
| 39,624,355 | ||||||||
| Transportation Revenue Bonds — 5.90% | ||||||||
| Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
| (Private Activity) | ||||||||
| Series B 5.00% 1/1/39 (AMT) | 1,000,000 | 1,041,540 | ||||||
| Series B 5.25% 1/1/47 (AMT) | 2,000,000 | 2,090,760 | ||||||
| (Senior) | ||||||||
| Series C 5.00% 1/1/29 | 410,000 | 440,980 | ||||||
| Series C 5.00% 1/1/33 | 850,000 | 908,522 | ||||||
| Series C 5.00% 1/1/36 | 600,000 | 634,530 | ||||||
| Series C 5.00% 1/1/41 | 600,000 | 623,514 | ||||||
| Series C 5.00% 1/1/46 | 1,595,000 | 1,642,818 | ||||||
20
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Transportation Revenue Bonds (continued) | ||||||||
| Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
| (Subordinate) | ||||||||
| Series A 5.00% 1/1/35 | 1,000,000 | $ | 1,012,450 | |||||
| Series A 5.00% 1/1/44 | 3,000,000 | 3,130,200 | ||||||
| Series B 5.00% 1/1/31 (AMT) | 960,000 | 1,032,144 | ||||||
| Series B 5.00% 1/1/35 | 1,205,000 | 1,307,835 | ||||||
| Series B 5.00% 1/1/44 (AMT) | 12,600,000 | 12,942,468 | ||||||
| Series B 5.00% 1/1/47 (AMT) | 1,000,000 | 1,027,420 | ||||||
| Series B 5.00% 1/1/49 (AMT) | 2,000,000 | 2,037,700 | ||||||
| 29,872,881 | ||||||||
| Water & Sewer Revenue Bonds — 1.51% | ||||||||
| Metropolitan Council General Obligation Wastewater Revenue | ||||||||
| (Minneapolis-St. Paul Metropolitan Area) | ||||||||
| Series C 4.00% 3/1/31 | 3,120,000 | 3,263,333 | ||||||
| Series C 4.00% 3/1/32 | 3,225,000 | 3,360,933 | ||||||
| Minnesota Public Facilities Authority | ||||||||
| Series B 4.00% 3/1/26 | 1,000,000 | 1,032,290 | ||||||
| 7,656,556 | ||||||||
| Total Municipal Bonds (cost $523,977,876) | 499,666,992 | |||||||
| Short-Term Investments — 0.54% | ||||||||
| Variable Rate Demand Notes — 0.54%¤ | ||||||||
| Minneapolis Health Care System Revenue | ||||||||
| (Fairview Health Services) | ||||||||
| Series C 2.65% 11/15/48 | ||||||||
| (LOC – Wells Fargo Bank N.A.) | 1,760,000 | 1,760,000 | ||||||
| Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue | ||||||||
| Series B-2 2.45% 11/15/35 | ||||||||
| (LOC – JPMorgan Chase Bank N.A.) | 1,000,000 | 1,000,000 | ||||||
| Total Short-Term Investments (cost $2,760,000) | 2,760,000 | |||||||
| Total Value of Securities—99.17% | ||||||||
| (cost $526,737,876) | $ | 502,426,992 | ||||||
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
21
Schedules of investments
Delaware Tax-Free Minnesota Fund
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At February 28, 2023, the aggregate value of Rule 144A securities was $15,555,279, which represents 3.07% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” | |
| ‡ | Non-income producing security. Security is currently in default. | |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. | |
| ● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at February 28, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. | |
| § | 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 6 in “Notes to financial statements.” | |
| ¤ | Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of February 28, 2023. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
LOC – Letter of Credit
N.A. – National Association
NATL – Insured by National Public Finance Guarantee Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
22
Schedules of investments
| Delaware Tax-Free Minnesota Intermediate Fund | February 28, 2023 (Unaudited) |
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds — 98.42% | ||||||||
| Education Revenue Bonds — 15.80% | ||||||||
| Bethel Charter School Lease Revenue | ||||||||
| (Spectrum High School Project) | ||||||||
| Series A 4.00% 7/1/32 | 425,000 | $ | 379,500 | |||||
| Brooklyn Park Charter School Lease Revenue | ||||||||
| (Prairie Seeds Academy Project) | ||||||||
| Series A 5.00% 3/1/34 | 485,000 | 458,296 | ||||||
| Cologne Charter School Lease Revenue | ||||||||
| (Cologne Academy Project) | ||||||||
| Series A 5.00% 7/1/29 | 305,000 | 304,158 | ||||||
| Duluth Housing & Redevelopment Authority Revenue | ||||||||
| (Duluth Public Schools Academy Project) | ||||||||
| Series A 5.00% 11/1/38 | 400,000 | 375,952 | ||||||
| Forest Lake Charter School Lease Revenue | ||||||||
| (Lakes International Language Academy Project) | ||||||||
| Series A 5.50% 8/1/36 | 420,000 | 421,730 | ||||||
| Hugo Charter School Lease Revenue | ||||||||
| (Noble Academy Project) | ||||||||
| Series A 5.00% 7/1/29 | 530,000 | 530,026 | ||||||
| Minneapolis Charter School Lease Revenue | ||||||||
| (Cyber Village Academy Project) | ||||||||
| Series A 5.25% 6/1/42 | 250,000 | 238,052 | ||||||
| (Hiawatha Academies Project) | ||||||||
| Series A 144A 5.00% 7/1/32 # | 500,000 | 480,140 | ||||||
| Minneapolis Student Housing Revenue | ||||||||
| (Riverton Community Housing Project) | ||||||||
| 5.25% 8/1/39 | 525,000 | 526,318 | ||||||
| Minnesota Higher Education Facilities Authority Revenue | ||||||||
| (Bethel University) | ||||||||
| 5.00% 5/1/32 | 750,000 | 743,423 | ||||||
| (Gustavus Adolphus College) | ||||||||
| 5.00% 10/1/34 | 435,000 | 461,979 | ||||||
| 5.00% 10/1/35 | 555,000 | 584,964 | ||||||
| (St. Catherine University) | ||||||||
| Series A 5.00% 10/1/35 | 565,000 | 594,239 | ||||||
| (St. John’s University) | ||||||||
| Series 8-I 5.00% 10/1/31 | 130,000 | 135,360 | ||||||
| (St. Olaf College) | ||||||||
| Series 8-G 5.00% 12/1/31 | 125,000 | 129,944 | ||||||
| Series 8-G 5.00% 12/1/32 | 125,000 | 129,910 | ||||||
| (University of St. Thomas) | ||||||||
| 4.00% 10/1/36 | 300,000 | 300,549 | ||||||
| 5.00% 10/1/34 | 350,000 | 382,088 | ||||||
23
Schedules of investments
Delaware Tax-Free Minnesota Intermediate Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Education Revenue Bonds (continued) | ||||||||
| Minnesota Higher Education Facilities Authority Revenue | ||||||||
| (University of St. Thomas) | ||||||||
| 5.00% 10/1/35 | 750,000 | $ | 817,117 | |||||
| Series 7-U 4.00% 4/1/26 | 1,400,000 | 1,400,840 | ||||||
| St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
| (Academia Cesar Chavez School Project) | ||||||||
| Series A 5.25% 7/1/50 | 340,000 | 284,454 | ||||||
| (Great River School Project) | ||||||||
| Series A 144A 5.25% 7/1/33 # | 140,000 | 140,634 | ||||||
| (Hmong College Preparatory Academy Project) | ||||||||
| Series A 5.00% 9/1/40 | 1,000,000 | 942,120 | ||||||
| (Twin Cities Academy Project) | ||||||||
| Series A 5.30% 7/1/45 | 260,000 | 244,125 | ||||||
| University of Minnesota | ||||||||
| (State Supported Biomedical Science Research Facilities Funding Program) | ||||||||
| Series A 5.00% 8/1/36 | 200,000 | 239,716 | ||||||
| 11,245,634 | ||||||||
| Electric Revenue Bonds — 6.40% | ||||||||
| Central Minnesota Municipal Power Agency Revenue | ||||||||
| (Brookings SouthEast Twin Cities Transmission Project) | ||||||||
| 3.00% 1/1/38 (AGM) | 300,000 | 262,191 | ||||||
| Chaska Electric Revenue | ||||||||
| (Generating Facilities) | ||||||||
| Series A 5.00% 10/1/28 | 250,000 | 261,675 | ||||||
| Minnesota Municipal Power Agency Electric Revenue | ||||||||
| Series A 5.00% 10/1/29 | 500,000 | 513,410 | ||||||
| Series A 5.00% 10/1/30 | 240,000 | 246,362 | ||||||
| Northern Municipal Power Agency Electric System Revenue | ||||||||
| 5.00% 1/1/29 | 150,000 | 157,481 | ||||||
| 5.00% 1/1/30 | 235,000 | 250,771 | ||||||
| 5.00% 1/1/31 | 350,000 | 367,258 | ||||||
| Series A 5.00% 1/1/25 | 200,000 | 200,230 | ||||||
| Rochester Electric Utility Revenue | ||||||||
| Series A 5.00% 12/1/28 | 300,000 | 321,390 | ||||||
| Series A 5.00% 12/1/29 | 500,000 | 534,000 | ||||||
| Series A 5.00% 12/1/31 | 575,000 | 612,841 | ||||||
| Southern Minnesota Municipal Power Agency Revenue | ||||||||
| Series A 5.00% 1/1/41 | 375,000 | 388,035 | ||||||
24
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Electric Revenue Bonds (continued) | ||||||||
| St. Paul Housing & Redevelopment Authority | ||||||||
| Series A 4.00% 10/1/30 | 425,000 | $ | 438,825 | |||||
| 4,554,469 | ||||||||
| Healthcare Revenue Bonds — 30.82% | ||||||||
| Anoka Healthcare & Housing Facilities Revenue | ||||||||
| (The Homestead at Anoka Project) | ||||||||
| 5.375% 11/1/34 | 270,000 | 258,803 | ||||||
| Apple Valley Senior Living Revenue | ||||||||
| (PHS Apple Valley Senior Housing Orchard Path Phase II Project) | ||||||||
| 4.00% 9/1/61 | 370,000 | 272,779 | ||||||
| (Senior Living LLC Project) | ||||||||
| 3rd Tier Series C 4.25% 1/1/27 | 380,000 | 318,394 | ||||||
| 3rd Tier Series C 5.00% 1/1/32 | 400,000 | 290,696 | ||||||
| Bethel Housing & Health Care Facilities Revenue | ||||||||
| (Benedictine Health System – St. Peter Communities Project) | ||||||||
| Series A 5.50% 12/1/48 | 250,000 | 201,978 | ||||||
| Bethel Senior Housing Revenue | ||||||||
| (The Lodge at the Lakes at Stillwater Project) | ||||||||
| 5.00% 6/1/38 | 250,000 | 227,320 | ||||||
| Chatfield Healthcare & Housing Facilities Revenue | ||||||||
| (Chosen Valley Care Center Project) | ||||||||
| 4.00% 9/1/34 | 100,000 | 81,099 | ||||||
| 4.00% 9/1/39 | 100,000 | 74,677 | ||||||
| Crookston Health Care Facilities Revenue | ||||||||
| (Riverview Health Project) | ||||||||
| 5.00% 5/1/38 | 400,000 | 352,856 | ||||||
| Dakota County Community Development Agency Senior Housing Revenue | ||||||||
| (Walker Highview Hills Project) | ||||||||
| Series A 144A 5.00% 8/1/36 # | 480,000 | 464,933 | ||||||
| Duluth Economic Development Authority Revenue | ||||||||
| (Essentia Health Obligated Group) | ||||||||
| Series A 5.00% 2/15/37 | 750,000 | 775,695 | ||||||
| Series A 5.00% 2/15/53 | 800,000 | 808,400 | ||||||
| Series A 5.25% 2/15/58 | 750,000 | 768,720 | ||||||
| (St. Luke’s Hospital of Duluth Obligated Group) | ||||||||
| Series B 5.25% 6/15/47 | 500,000 | 506,285 | ||||||
| Glencoe Health Care Facilities Revenue | ||||||||
| (Glencoe Regional Health Services Project) | ||||||||
| 4.00% 4/1/26 | 270,000 | 266,541 | ||||||
25
Schedules of investments
Delaware Tax-Free Minnesota Intermediate Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| Hayward Health Care Facilities Revenue | ||||||||
| (American Baptist Homes Midwest Obligated Group) | ||||||||
| 4.25% 8/1/24 | 153,334 | $ | 148,817 | |||||
| Maple Grove Health Care Facilities Revenue | ||||||||
| (Maple Grove Hospital Corporation) | ||||||||
| 4.00% 5/1/37 | 500,000 | 459,910 | ||||||
| 5.00% 5/1/28 | 1,000,000 | 1,046,700 | ||||||
| (North Memorial Health Care) | ||||||||
| 5.00% 9/1/31 | 320,000 | 329,011 | ||||||
| Minneapolis Health Care System Revenue | ||||||||
| (Allina Health System) | ||||||||
| 4.00% 11/15/40 | 1,250,000 | 1,207,500 | ||||||
| (Fairview Health Services) | ||||||||
| Series A 5.00% 11/15/33 | 500,000 | 516,210 | ||||||
| Series A 5.00% 11/15/33 | 710,000 | 756,058 | ||||||
| Series A 5.00% 11/15/34 | 500,000 | 514,910 | ||||||
| Series A 5.00% 11/15/49 | 1,000,000 | 1,015,200 | ||||||
| Minneapolis Senior Housing & Healthcare Revenue | ||||||||
| (Ecumen-Abiitan Mill City Project) | ||||||||
| 5.00% 11/1/35 | 530,000 | 483,842 | ||||||
| Rochester Health Care & Housing Revenue | ||||||||
| (The Homestead at Rochester Project) | ||||||||
| Series A 6.875% 12/1/48 | 290,000 | 290,780 | ||||||
| Rochester Health Care Facilities Revenue | ||||||||
| (Mayo Clinic) | ||||||||
| 4.00% 11/15/39 | 2,500,000 | 2,541,400 | ||||||
| Series B 5.00% 11/15/36 | 150,000 | 175,206 | ||||||
| Sauk Rapids Health Care Housing Facilities Revenue | ||||||||
| (Good Shepherd Lutheran Home) | ||||||||
| 5.125% 1/1/39 | 575,000 | 489,394 | ||||||
| St. Cloud Health Care Revenue | ||||||||
| (Centracare Health System Project) | ||||||||
| 5.00% 5/1/48 | 1,810,000 | 1,847,648 | ||||||
| Series A 4.00% 5/1/37 | 240,000 | 232,915 | ||||||
| Series A 5.00% 5/1/46 | 235,000 | 239,150 | ||||||
| St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
| (Allina Health System) | ||||||||
| Series A 5.00% 11/15/27 | 1,205,000 | 1,296,279 | ||||||
26
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
| (Episcopal Homes Project) | ||||||||
| 5.00% 5/1/33 | 500,000 | $ | 456,975 | |||||
| (HealthPartners Obligated Group Project) | ||||||||
| Series A 5.00% 7/1/33 | 965,000 | 995,918 | ||||||
| Wayzata Senior Housing Revenue | ||||||||
| (Folkestone Senior Living Community) | ||||||||
| 5.00% 8/1/34 | 125,000 | 124,243 | ||||||
| 5.00% 8/1/35 | 150,000 | 147,678 | ||||||
| West St. Paul, Housing & Health Care Facilities Revenue | ||||||||
| (Walker Westwood Ridge Campus Project) | ||||||||
| 5.00% 11/1/37 | 500,000 | 483,810 | ||||||
| Woodbury Housing & Redevelopment Authority Revenue | ||||||||
| (St. Therese of Woodbury) | ||||||||
| 5.00% 12/1/34 | 500,000 | 462,605 | ||||||
| 21,931,335 | ||||||||
| Housing Revenue Bonds — 0.66% | ||||||||
| Minnesota Housing Finance Agency Residential Housing Finance | ||||||||
| Series I 2.00% 7/1/40 | 275,000 | 201,727 | ||||||
| Northwest Multi-County Housing & Redevelopment Authority | ||||||||
| (Pooled Housing Program) | ||||||||
| 5.50% 7/1/45 | 285,000 | 271,944 | ||||||
| 473,671 | ||||||||
| Industrial Development Revenue/Pollution Control Revenue Bond — 1.80% | ||||||||
| St. Paul Port Authority Solid Waste Disposal Revenue | ||||||||
| (Gerdau St. Paul Steel Mill Project) | ||||||||
| Series 7 144A 4.50% 10/1/37 # | 1,385,000 | 1,281,347 | ||||||
| 1,281,347 | ||||||||
| Lease Revenue Bonds — 2.85% | ||||||||
| Hibbing Independent School District No. 701 | ||||||||
| Series A 3.00% 3/1/41 | 250,000 | 208,297 | ||||||
| Minnesota General Fund Revenue | ||||||||
| (Appropriations) | ||||||||
| Series A 5.00% 6/1/38 | 1,100,000 | 1,102,134 | ||||||
| Series A 5.00% 6/1/43 | 715,000 | 716,037 | ||||||
| 2,026,468 | ||||||||
27
Schedules of investments
Delaware Tax-Free Minnesota Intermediate Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Local General Obligation Bonds — 21.56% | ||||||||
| Anoka-Hennepin Independent School District No. 11 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 3.00% 2/1/45 | 500,000 | $ | 407,845 | |||||
| Bloomington Independent School District No. 271 | ||||||||
| (School District Credit Enhancement Program) | ||||||||
| Series A 2.00% 2/1/27 | 585,000 | 553,638 | ||||||
| Cass Lake-Bena Independent School District No. 115 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 4.00% 2/1/41 | 130,000 | 128,240 | ||||||
| Series A 4.00% 2/1/42 | 320,000 | 313,786 | ||||||
| Series A 4.00% 2/1/43 | 275,000 | 267,847 | ||||||
| City of Minneapolis | ||||||||
| (Green Bonds) | ||||||||
| 3.00% 12/1/42 | 600,000 | 502,320 | ||||||
| Duluth General Obligation Improvement | ||||||||
| (DECC Improvement) | ||||||||
| Series A 5.00% 2/1/30 | 250,000 | 263,128 | ||||||
| Elk River Independent School District No. 728 | ||||||||
| Series A 3.00% 2/1/40 | 415,000 | 354,086 | ||||||
| Hennepin County | ||||||||
| Series A 5.00% 12/1/36 | 1,500,000 | 1,585,650 | ||||||
| Series A 5.00% 12/1/38 | 1,055,000 | 1,139,864 | ||||||
| Series C 5.00% 12/1/30 | 1,500,000 | 1,607,505 | ||||||
| Lakeville Independent School District No. 194 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series B 4.00% 2/1/28 | 1,475,000 | 1,551,906 | ||||||
| Marshall General Obligation Improvement | ||||||||
| Series B 4.00% 4/1/28 | 275,000 | 290,499 | ||||||
| Minneapolis Special School District No. 1 | ||||||||
| Series B 4.00% 2/1/39 | 1,360,000 | 1,381,842 | ||||||
| Series B 5.00% 2/1/40 | 500,000 | 555,620 | ||||||
| Series D 5.00% 2/1/34 | 250,000 | 285,395 | ||||||
| North St. Paul-Maplewood-Oakdale Independent School District No. 622 | ||||||||
| Series A 4.00% 2/1/30 | 500,000 | 527,875 | ||||||
| Park Rapids Independent School District No. 309 | ||||||||
| (Park Rapids Area Public Schools) | ||||||||
| Series A 4.00% 2/1/31 | 605,000 | 651,597 | ||||||
28
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Local General Obligation Bonds (continued) | ||||||||
| Plymouth General Obligation Improvement | ||||||||
| Series A 3.00% 2/1/32 | 535,000 | $ | 533,550 | |||||
| St. Cloud General Obligation Tax Abatement | ||||||||
| Series C 3.00% 10/1/32 | 425,000 | 417,146 | ||||||
| St. Michael-Albertville Independent School District No. 885 | ||||||||
| (School Building) | ||||||||
| Series A 5.00% 2/1/27 | 500,000 | 525,685 | ||||||
| Virginia, Minnesota | ||||||||
| (General Obligation Sales Tax Revenue) | ||||||||
| Series A 4.00% 2/1/38 (AGM) | 1,000,000 | 1,003,870 | ||||||
| White Bear Lake Independent School District No. 624 | ||||||||
| Series A 3.00% 2/1/42 | 600,000 | 494,640 | ||||||
| 15,343,534 | ||||||||
| Pre-Refunded/Escrowed to Maturity Bonds — 0.42% | ||||||||
| St. Paul Housing & Redevelopment Authority Hospital Revenue | ||||||||
| (Healtheast Care System Project) | ||||||||
| Series A 5.00% 11/15/29-25 § | 165,000 | 173,065 | ||||||
| Series A 5.00% 11/15/30-25 § | 120,000 | 125,866 | ||||||
| 298,931 | ||||||||
| Special Tax Revenue Bonds — 3.10% | ||||||||
| Commonwealth of Puerto Rico | ||||||||
| 2.807% 11/1/43 ● | 405,244 | 174,761 | ||||||
| Minneapolis Revenue | ||||||||
| (YMCA Greater Twin Cities Project) | ||||||||
| 4.00% 6/1/27 | 150,000 | 152,727 | ||||||
| Puerto Rico Sales Tax Financing Revenue | ||||||||
| (Restructured) | ||||||||
| Series A-1 4.55% 7/1/40 | 830,000 | 775,112 | ||||||
| Series A-1 4.62% 7/1/46 ^ | 530,000 | 135,828 | ||||||
| Series A-1 4.75% 7/1/53 | 655,000 | 587,129 | ||||||
| Series A-1 5.216% 7/1/51 ^ | 289,000 | 54,529 | ||||||
| Series A-2 4.536% 7/1/53 | 378,000 | 326,887 | ||||||
| 2,206,973 | ||||||||
| State General Obligation Bonds — 8.65% | ||||||||
| Commonwealth of Puerto Rico | ||||||||
| (Restructured) | ||||||||
| Series A-1 4.00% 7/1/41 | 179,773 | 148,503 | ||||||
| Series A-1 5.625% 7/1/27 | 104,000 | 107,434 | ||||||
29
Schedules of investments
Delaware Tax-Free Minnesota Intermediate Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| State General Obligation Bonds (continued) | ||||||||
| Minnesota State | ||||||||
| Series A 5.00% 9/1/31 | 1,750,000 | $ | 2,062,970 | |||||
| Series A 5.00% 8/1/33 | 285,000 | 317,835 | ||||||
| Series A 5.00% 8/1/34 | 1,000,000 | 1,109,150 | ||||||
| Series D 5.00% 8/1/26 | 1,500,000 | 1,604,835 | ||||||
| Series D 5.00% 8/1/27 | 250,000 | 266,465 | ||||||
| Series E 5.00% 10/1/26 | 500,000 | 536,855 | ||||||
| 6,154,047 | ||||||||
| Transportation Revenue Bonds — 4.67% | ||||||||
| Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
| (Private Activity) | ||||||||
| Series B 5.00% 1/1/39 (AMT) | 715,000 | 744,701 | ||||||
| (Subordinate) | ||||||||
| Series A 5.00% 1/1/44 | 1,000,000 | 1,043,400 | ||||||
| Series B 5.00% 1/1/31 (AMT) | 160,000 | 172,024 | ||||||
| St. Paul Housing & Redevelopment Authority | ||||||||
| (Parking Enterprise) | ||||||||
| Series A 4.00% 8/1/26 | 450,000 | 456,134 | ||||||
| Series A 4.00% 8/1/27 | 545,000 | 552,586 | ||||||
| Series A 4.00% 8/1/28 | 350,000 | 356,531 | ||||||
| 3,325,376 | ||||||||
| Water & Sewer Revenue Bonds — 1.69% | ||||||||
| Metropolitan Council General Obligation Wastewater Revenue | ||||||||
| (Minneapolis – St. Paul Metropolitan Area) | ||||||||
| Series C 4.00% 3/1/31 | 565,000 | 590,956 | ||||||
| Series C 4.00% 3/1/32 | 585,000 | 609,658 | ||||||
| 1,200,614 | ||||||||
| Total Municipal Bonds (cost $72,408,590) | 70,042,399 | |||||||
| Total Value of Securities—98.42% | ||||||||
| (cost $72,408,590) | $ | 70,042,399 | ||||||
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. | |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At February 28, 2023, the aggregate value of Rule 144A securities was $2,367,054, which represents 3.33% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” |
30
| § | 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 6 in “Notes to financial statements.” | |
| ● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at February 28, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. | |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
31
Schedules of investments
| Delaware Minnesota High-Yield Municipal Bond Fund | February 28, 2023 (Unaudited) |
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds — 95.82% | ||||||||
| Corporate Revenue Bond — 0.41% | ||||||||
| Cottonwood | ||||||||
| (Extreme Holdings LLC Project) | ||||||||
| Series A 144A 5.00% 12/1/50 (AMT) # | 1,210,000 | $ | 889,798 | |||||
| 889,798 | ||||||||
| Education Revenue Bonds — 25.29% | ||||||||
| Bethel Charter School Lease Revenue | ||||||||
| (Spectrum High School Project) | ||||||||
| Series A 4.00% 7/1/37 | 850,000 | 710,464 | ||||||
| Series A 4.25% 7/1/47 | 750,000 | 575,985 | ||||||
| Brooklyn Park Charter School Lease Revenue | ||||||||
| (Prairie Seeds Academy Project) | ||||||||
| Series A 5.00% 3/1/39 | 1,270,000 | 1,156,360 | ||||||
| Cologne Charter School Lease Revenue | ||||||||
| (Cologne Academy Project) | ||||||||
| Series A 5.00% 7/1/29 | 270,000 | 269,255 | ||||||
| Series A 5.00% 7/1/34 | 250,000 | 242,410 | ||||||
| Series A 5.00% 7/1/45 | 360,000 | 330,491 | ||||||
| Deephaven Charter School Lease Revenue | ||||||||
| (Eagle Ridge Academy Project) | ||||||||
| Series A 5.50% 7/1/50 | 1,000,000 | 1,000,340 | ||||||
| Duluth Housing & Redevelopment Authority Revenue | ||||||||
| (Duluth Public Schools Academy Project) | ||||||||
| Series A 5.00% 11/1/48 | 1,000,000 | 887,700 | ||||||
| Forest Lake Charter School Lease Revenue Fund | ||||||||
| (Lakes International Language Academy) | ||||||||
| Series A 5.375% 8/1/50 | 660,000 | 633,923 | ||||||
| Series A 5.75% 8/1/44 | 585,000 | 586,773 | ||||||
| Ham Lake Charter School Lease Revenue | ||||||||
| (Davinci Academy Project) | ||||||||
| Series A 5.00% 7/1/36 | 235,000 | 228,742 | ||||||
| Series A 5.00% 7/1/47 | 710,000 | 636,373 | ||||||
| (Parnassus Preparatory School Project) | ||||||||
| Series A 5.00% 11/1/47 | 650,000 | 595,705 | ||||||
| Hugo Charter School Lease Revenue | ||||||||
| (Noble Academy Project) | ||||||||
| Series A 5.00% 7/1/34 | 420,000 | 409,685 | ||||||
| Series A 5.00% 7/1/44 | 495,000 | 453,643 | ||||||
| Minneapolis Charter School Lease Revenue | ||||||||
| (Cyber Village Academy Project) | ||||||||
| Series A 5.50% 6/1/57 | 1,400,000 | 1,329,692 | ||||||
32
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Education Revenue Bonds (continued) | ||||||||
| Minneapolis Charter School Lease Revenue | ||||||||
| (Hiawatha Academies Project) | ||||||||
| Series A 144A 5.375% 7/1/42 # | 690,000 | $ | 643,970 | |||||
| Series A 144A 5.50% 7/1/52 # | 1,130,000 | 1,037,814 | ||||||
| Series A 144A 5.50% 7/1/57 # | 880,000 | 798,530 | ||||||
| Minneapolis Student Housing Revenue | ||||||||
| (Riverton Community Housing Project) | ||||||||
| 144A 4.75% 8/1/43 # | 750,000 | 692,295 | ||||||
| 144A 5.00% 8/1/53 # | 570,000 | 542,298 | ||||||
| 5.25% 8/1/39 | 800,000 | 802,008 | ||||||
| Minnesota Higher Education Facilities Authority Revenue | ||||||||
| (Bethel University) | ||||||||
| 5.00% 5/1/32 | 1,150,000 | 1,139,915 | ||||||
| 5.00% 5/1/47 | 2,750,000 | 2,413,977 | ||||||
| (Carleton College) | ||||||||
| 4.00% 3/1/37 | 635,000 | 639,337 | ||||||
| (Green Bonds) | ||||||||
| Series A 5.00% 10/1/32 | 500,000 | 554,970 | ||||||
| (Gustavus Adolphus College) | ||||||||
| 5.00% 10/1/47 | 2,100,000 | 2,143,155 | ||||||
| (Macalester College) | ||||||||
| 3.00% 3/1/40 | 365,000 | 307,421 | ||||||
| 3.00% 3/1/43 | 325,000 | 257,748 | ||||||
| (Minneapolis College of Art & Design) | ||||||||
| 4.00% 5/1/24 | 250,000 | 249,890 | ||||||
| 4.00% 5/1/25 | 200,000 | 200,000 | ||||||
| 4.00% 5/1/26 | 100,000 | 100,017 | ||||||
| (St. Catherine University) | ||||||||
| Series A 4.00% 10/1/37 | 580,000 | 556,696 | ||||||
| Series A 5.00% 10/1/45 | 670,000 | 683,105 | ||||||
| (St. John’s University) | ||||||||
| Series 8-I 5.00% 10/1/34 | 215,000 | 223,310 | ||||||
| (St. Olaf College) | ||||||||
| 4.00% 10/1/50 | 935,000 | 860,144 | ||||||
| Series 8-G 5.00% 12/1/31 | 205,000 | 213,108 | ||||||
| Series 8-G 5.00% 12/1/32 | 205,000 | 213,052 | ||||||
| Series 8-N 4.00% 10/1/34 | 800,000 | 808,224 | ||||||
| Series 8-N 4.00% 10/1/35 | 590,000 | 593,221 | ||||||
| (Trustees of the Hamline University of Minnesota) | ||||||||
| Series B 5.00% 10/1/37 | 300,000 | 303,855 | ||||||
| Series B 5.00% 10/1/39 | 1,000,000 | 1,009,290 | ||||||
33
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 | ||||||||
| (University of St. Thomas) | ||||||||
| 4.00% 10/1/37 | 800,000 | $ | 790,800 | |||||
| 4.00% 10/1/41 | 1,000,000 | 943,480 | ||||||
| 4.00% 10/1/44 | 1,050,000 | 977,718 | ||||||
| 5.00% 10/1/40 | 1,365,000 | 1,429,128 | ||||||
| Series A 4.00% 10/1/35 | 400,000 | 403,880 | ||||||
| Otsego Charter School Lease Revenue | ||||||||
| (Kaleidoscope Charter School) | ||||||||
| Series A 5.00% 9/1/44 | 1,435,000 | 1,269,243 | ||||||
| St. Cloud Charter School Lease Revenue | ||||||||
| (Stride Academy Project) | ||||||||
| Series A 5.00% 4/1/46 | 750,000 | 552,173 | ||||||
| St. Paul Housing & Redevelopment Authority Charter School Lease Revenue | ||||||||
| (Academia Cesar Chavez School Project) | ||||||||
| Series A 5.25% 7/1/50 | 1,750,000 | 1,464,102 | ||||||
| (Great River School Project) | ||||||||
| Series A 144A 4.75% 7/1/29 # | 100,000 | 98,597 | ||||||
| Series A 144A 5.50% 7/1/52 # | 265,000 | 260,431 | ||||||
| (Hmong College Preparatory Academy Project) | ||||||||
| Series A 5.00% 9/1/40 | 215,000 | 202,556 | ||||||
| Series A 5.00% 9/1/43 | 750,000 | 693,818 | ||||||
| Series A 5.00% 9/1/55 | 1,000,000 | 879,910 | ||||||
| Series A 5.75% 9/1/46 | 500,000 | 500,810 | ||||||
| Series A 6.00% 9/1/51 | 3,500,000 | 3,526,250 | ||||||
| (Nova Classical Academy Project) | ||||||||
| Series A 4.00% 9/1/36 | 1,270,000 | 1,101,128 | ||||||
| Series A 4.125% 9/1/47 | 1,250,000 | 994,563 | ||||||
| (Twin Cities Academy Project) | ||||||||
| Series A 5.375% 7/1/50 | 1,500,000 | 1,399,395 | ||||||
| St. Paul Housing & Redevelopment Authority Revenue | ||||||||
| (Amherst H. Wilder Foundation Project) | ||||||||
| Series A 5.00% 12/1/36 | 1,000,000 | 1,002,470 | ||||||
| University of Minnesota | ||||||||
| Series A 5.00% 11/1/32 | 985,000 | 1,126,426 | ||||||
| Series A 5.00% 9/1/40 | 900,000 | 956,286 | ||||||
| Series A 5.00% 9/1/41 | 620,000 | 658,725 | ||||||
| (State Supported Biomedical Science Research Facilities Funding Program) | ||||||||
| Series A 5.00% 8/1/31 | 1,000,000 | 1,174,900 | ||||||
| Series A 5.00% 8/1/35 | 2,200,000 | 2,655,246 | ||||||
34
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Education Revenue Bonds (continued) | ||||||||
| Woodbury Charter School Lease Revenue | ||||||||
| (MSA Building Company) | ||||||||
| Series A 4.00% 12/1/50 | 450,000 | $ | 374,198 | |||||
| (Woodbury Leadership Academy Project) | ||||||||
| Series A 4.00% 7/1/51 | 660,000 | 483,305 | ||||||
| Series A 4.00% 7/1/56 | 575,000 | 405,593 | ||||||
| 54,360,022 | ||||||||
| Electric Revenue Bonds — 3.82% | ||||||||
| Hutchinson Utilities Commission Revenue | ||||||||
| Series A 5.00% 12/1/26 | 360,000 | 360,518 | ||||||
| Minnesota Municipal Power Agency Electric Revenue | ||||||||
| 5.00% 10/1/27 | 165,000 | 169,503 | ||||||
| 5.00% 10/1/28 | 500,000 | 513,490 | ||||||
| 5.00% 10/1/47 | 745,000 | 771,604 | ||||||
| Northern Municipal Power Agency Electric System Revenue | ||||||||
| 5.00% 1/1/29 | 470,000 | 493,439 | ||||||
| 5.00% 1/1/33 | 225,000 | 238,651 | ||||||
| 5.00% 1/1/34 | 200,000 | 211,738 | ||||||
| Series A 5.00% 1/1/24 | 335,000 | 335,432 | ||||||
| Puerto Rico Electric Power Authority Revenue | ||||||||
| Series A 5.05% 7/1/42 ‡ | 165,000 | 115,087 | ||||||
| Series AAA 5.25% 7/1/25 ‡ | 95,000 | 66,144 | ||||||
| Series CCC 5.25% 7/1/27 ‡ | 650,000 | 453,375 | ||||||
| Series WW 5.00% 7/1/28 ‡ | 585,000 | 406,575 | ||||||
| Series XX 4.75% 7/1/26 ‡ | 105,000 | 72,713 | ||||||
| Series XX 5.25% 7/1/40 ‡ | 295,000 | 207,237 | ||||||
| Series XX 5.75% 7/1/36 ‡ | 370,000 | 261,775 | ||||||
| Series ZZ 4.75% 7/1/27 ‡ | 85,000 | 58,863 | ||||||
| Series ZZ 5.25% 7/1/24 ‡ | 130,000 | 90,512 | ||||||
| Rochester Electric Utility Revenue | ||||||||
| Series A 5.00% 12/1/34 | 450,000 | 477,324 | ||||||
| Series A 5.00% 12/1/35 | 500,000 | 527,285 | ||||||
| Series A 5.00% 12/1/36 | 520,000 | 548,002 | ||||||
| Southern Minnesota Municipal Power Agency Revenue | ||||||||
| Series A 5.00% 1/1/41 | 400,000 | 413,904 | ||||||
| St. Paul Housing & Redevelopment Energy Revenue | ||||||||
| Series A 4.00% 10/1/32 | 800,000 | 819,256 | ||||||
35
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Electric Revenue Bonds (continued) | ||||||||
| Western Minnesota Municipal Power Agency Revenue | ||||||||
| (Red Rock Hydroelectric Project) | ||||||||
| Series A 5.00% 1/1/49 | 555,000 | $ | 588,439 | |||||
| 8,200,866 | ||||||||
| Healthcare Revenue Bonds — 34.58% | ||||||||
| Anoka Healthcare & Housing Facilities Revenue | ||||||||
| (The Homestead at Anoka Project) | ||||||||
| 5.125% 11/1/49 | 400,000 | 334,240 | ||||||
| Apple Valley Senior Housing Revenue | ||||||||
| (PHS Senior Housing, Inc. Orchard Path Project) | ||||||||
| 4.50% 9/1/53 | 840,000 | 728,683 | ||||||
| 5.00% 9/1/43 | 535,000 | 519,635 | ||||||
| 5.00% 9/1/58 | 1,175,000 | 1,094,090 | ||||||
| Apple Valley Senior Living Revenue | ||||||||
| (Senior Living LLC Project) | ||||||||
| 2nd Tier Series B 5.00% 1/1/47 | 535,000 | 310,899 | ||||||
| 4th Tier Series D 7.00% 1/1/37 | 490,000 | 334,425 | ||||||
| 4th Tier Series D 7.25% 1/1/52 | 1,495,000 | 929,023 | ||||||
| Bethel Housing & Health Care Facilities Revenue | ||||||||
| (Benedictine Health System – St. Peter Communities Project) | ||||||||
| Series A 5.50% 12/1/48 | 1,280,000 | 1,034,125 | ||||||
| Bethel Senior Housing Revenue | ||||||||
| (The Lodge at the Lakes at Stillwater Project) | ||||||||
| 5.25% 6/1/58 | 1,475,000 | 1,226,182 | ||||||
| Brooklyn Center Multifamily Housing Revenue | ||||||||
| (Sanctuary at Brooklyn Center Project) | ||||||||
| Series A 5.50% 11/1/35 ‡ | 645,000 | 387,000 | ||||||
| Center City Healthcare Facilities Revenue | ||||||||
| (Hazelden Betty Ford Foundation Project) | ||||||||
| 4.50% 11/1/34 | 1,000,000 | 1,000,730 | ||||||
| Chatfield Healthcare & Housing Facilities Revenue | ||||||||
| (Chosen Valley Care Center Project) | ||||||||
| 4.00% 9/1/39 | 250,000 | 186,693 | ||||||
| 5.00% 9/1/52 | 1,500,000 | 1,180,245 | ||||||
| Crookston Health Care Facilities Revenue | ||||||||
| (Riverview Health Project) | ||||||||
| 5.00% 5/1/51 | 1,025,000 | 837,579 | ||||||
| Dakota County Community Development Agency Senior Housing Revenue | ||||||||
| (Walker Highview Hills Project) | ||||||||
| Series A 144A 5.00% 8/1/46 # | 370,000 | 334,957 | ||||||
36
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| Dakota County Community Development Agency Senior Housing Revenue | ||||||||
| (Walker Highview Hills Project) | ||||||||
| Series A 144A 5.00% 8/1/51 # | 1,625,000 | $ | 1,446,998 | |||||
| Deephaven Housing & Healthcare Revenue | ||||||||
| (St. Therese Senior Living Project) | ||||||||
| Series A 5.00% 4/1/38 | 335,000 | 294,167 | ||||||
| Series A 5.00% 4/1/40 | 315,000 | 271,920 | ||||||
| Series A 5.00% 4/1/48 | 185,000 | 150,294 | ||||||
| Duluth Economic Development Authority Revenue | ||||||||
| (Benedictine Health System) | ||||||||
| Series A 4.00% 7/1/41 | 930,000 | 738,931 | ||||||
| (Essentia Health Obligated Group) | ||||||||
| Series A 4.25% 2/15/43 | 2,500,000 | 2,391,625 | ||||||
| Series A 5.00% 2/15/53 | 1,590,000 | 1,606,695 | ||||||
| Series A 5.00% 2/15/58 | 1,750,000 | 1,767,605 | ||||||
| Series A 5.25% 2/15/58 | 2,000,000 | 2,049,920 | ||||||
| (St. Luke’s Hospital of Duluth Obligated Group) | ||||||||
| Series A 4.00% 6/15/33 | 380,000 | 367,810 | ||||||
| Series A 4.00% 6/15/38 | 400,000 | 358,744 | ||||||
| Series A 4.00% 6/15/39 | 250,000 | 221,490 | ||||||
| Series B 5.25% 6/15/52 | 1,000,000 | 1,006,190 | ||||||
| Glencoe Health Care Facilities Revenue | ||||||||
| (Glencoe Regional Health Services Project) | ||||||||
| 4.00% 4/1/31 | 185,000 | 181,746 | ||||||
| Hayward Health Care Facilities Revenue | ||||||||
| (American Baptist Homes Midwest Obligated Group) | ||||||||
| 5.375% 8/1/34 | 750,000 | 647,265 | ||||||
| (St. John’s Lutheran Home of Albert Lea Project) | ||||||||
| 5.375% 10/1/44 | 90,000 | 59,124 | ||||||
| Maple Grove Health Care Facilities Revenue | ||||||||
| (Maple Grove Hospital Corporation) | ||||||||
| 4.00% 5/1/37 | 1,155,000 | 1,062,392 | ||||||
| 5.00% 5/1/26 | 1,300,000 | 1,351,467 | ||||||
| 5.00% 5/1/29 | 500,000 | 523,530 | ||||||
| (North Memorial Health Care) | ||||||||
| 4.00% 9/1/35 | 300,000 | 283,818 | ||||||
| 5.00% 9/1/30 | 610,000 | 628,007 | ||||||
| Maple Plain Senior Housing & Health Care Revenue | ||||||||
| (Haven Homes Incorporate Project) | ||||||||
| 5.00% 7/1/49 | 1,000,000 | 837,220 | ||||||
37
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| Minneapolis Health Care System Revenue | ||||||||
| (Allina Health System) | ||||||||
| 4.00% 11/15/40 | 1,000,000 | $ | 966,000 | |||||
| (Fairview Health Services) | ||||||||
| Series A 4.00% 11/15/48 | 1,000,000 | 878,970 | ||||||
| Series A 5.00% 11/15/33 | 1,200,000 | 1,238,904 | ||||||
| Series A 5.00% 11/15/33 | 1,000,000 | 1,064,870 | ||||||
| Series A 5.00% 11/15/34 | 500,000 | 514,910 | ||||||
| Series A 5.00% 11/15/44 | 1,000,000 | 1,011,230 | ||||||
| Series A 5.00% 11/15/49 | 2,450,000 | 2,487,240 | ||||||
| Minneapolis Senior Housing & Healthcare Revenue | ||||||||
| (Ecumen-Abiitan Mill City Project) | ||||||||
| 5.375% 11/1/50 | 1,700,000 | 1,523,642 | ||||||
| Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue | ||||||||
| (Allina Health System) | ||||||||
| Series A 5.00% 11/15/29 | 415,000 | 447,216 | ||||||
| Morris Health Care Facilities Revenue | ||||||||
| (Farmington Health Services) | ||||||||
| 4.10% 8/1/44 | 500,000 | 369,735 | ||||||
| 4.20% 8/1/49 | 1,500,000 | 1,075,980 | ||||||
| Rochester Health Care & Housing Revenue | ||||||||
| (The Homestead at Rochester Project) | ||||||||
| Series A 5.25% 12/1/23 | 175,000 | 174,515 | ||||||
| Series A 6.875% 12/1/48 | 1,200,000 | 1,203,228 | ||||||
| Rochester Health Care Facilities Revenue | ||||||||
| (Mayo Clinic) | ||||||||
| 4.00% 11/15/39 | 1,500,000 | 1,524,840 | ||||||
| 5.00% 11/15/57 | 5,175,000 | 5,557,795 | ||||||
| Series B 5.00% 11/15/36 | 500,000 | 584,020 | ||||||
| Sartell Health Care & Housing Facilities Revenue | ||||||||
| (Country Manor Campus LLC Project) | ||||||||
| Series A 5.00% 9/1/35 | 350,000 | 317,807 | ||||||
| Sauk Rapids Health Care Housing Facilities Revenue | ||||||||
| (Good Shepherd Lutheran Home) | ||||||||
| 5.125% 1/1/39 | 825,000 | 702,174 | ||||||
| Shakopee Health Care Facilities Revenue | ||||||||
| (St. Francis Regional Medical Center) | ||||||||
| 4.00% 9/1/31 | 130,000 | 130,079 | ||||||
| 5.00% 9/1/34 | 105,000 | 106,158 | ||||||
38
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Healthcare Revenue Bonds (continued) | ||||||||
| St. Cloud Health Care Revenue | ||||||||
| (Centracare Health System Project) | ||||||||
| 4.00% 5/1/49 | 250,000 | $ | 226,092 | |||||
| 5.00% 5/1/48 | 4,200,000 | 4,287,360 | ||||||
| Series A 4.00% 5/1/37 | 1,695,000 | 1,644,964 | ||||||
| Series A 5.00% 5/1/46 | 2,630,000 | 2,676,446 | ||||||
| St. Joseph Senior Housing & Healthcare Revenue | ||||||||
| (Woodcrest Country Manor Project) | ||||||||
| 5.00% 7/1/55 | 1,000,000 | 801,700 | ||||||
| St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue | ||||||||
| (Episcopal Homes Project) | ||||||||
| 5.125% 5/1/48 | 1,700,000 | 1,410,303 | ||||||
| (Fairview Health Services) | ||||||||
| Series A 4.00% 11/15/43 | 645,000 | 581,532 | ||||||
| Series A 5.00% 11/15/47 | 760,000 | 770,503 | ||||||
| (HealthPartners Obligated Group Project) | ||||||||
| Series A 4.00% 7/1/33 | 1,320,000 | 1,328,039 | ||||||
| Series A 5.00% 7/1/33 | 2,540,000 | 2,621,382 | ||||||
| (Healthpartners Obligated Group) | ||||||||
| Series A 5.00% 7/1/30 | 1,000,000 | 1,035,020 | ||||||
| (Marian Center Project) | ||||||||
| Series A 5.375% 5/1/43 | 1,000,000 | 829,480 | ||||||
| St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue | ||||||||
| (Episcopal Homes Obligated Group) | ||||||||
| Series A 4.00% 11/1/42 | 700,000 | 549,822 | ||||||
| Victoria Health Care Facilities Revenue | ||||||||
| (Augustana Emerald Care Project) | ||||||||
| 5.00% 8/1/39 | 1,500,000 | 1,232,760 | ||||||
| Wayzata Senior Housing Revenue | ||||||||
| (Folkestone Senior Living Community) | ||||||||
| 3.75% 8/1/37 | 500,000 | 419,415 | ||||||
| 4.00% 8/1/38 | 500,000 | 428,780 | ||||||
| 4.00% 8/1/39 | 400,000 | 338,748 | ||||||
| 4.00% 8/1/44 | 700,000 | 561,260 | ||||||
| 5.00% 8/1/54 | 750,000 | 678,667 | ||||||
| West St. Paul Rochester Health Care & Housing Revenue | ||||||||
| (Walker Westwood Ridge Campus Project) | ||||||||
| 5.00% 11/1/49 | 1,500,000 | 1,351,140 | ||||||
| 74,338,190 | ||||||||
39
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Housing Revenue Bonds — 1.52% | ||||||||
| Bethel Senior Housing Revenue | ||||||||
| (Birchwood Landing at the Lakes at Stillwater Project) | ||||||||
| 5.00%5/1/54 | 1,000,000 | $ | 813,010 | |||||
| Minnesota Housing Finance Agency | ||||||||
| Series I 2.20% 1/1/51 | 635,000 | 429,571 | ||||||
| (State Appropriation - Housing Infrastructure) | ||||||||
| Series C 5.00% 8/1/33 | 100,000 | 102,201 | ||||||
| Northwest Multi-County Housing & Redevelopment Authority | ||||||||
| (Pooled Housing Program) | ||||||||
| 5.50% 7/1/45 | 1,275,000 | 1,216,592 | ||||||
| Stillwater Multifamily Housing Revenue | ||||||||
| (Orleans Homes Project) | ||||||||
| 5.50% 2/1/42 (AMT) | 750,000 | 702,255 | ||||||
| 3,263,629 | ||||||||
| Industrial Development Revenue/Pollution Control Revenue Bond — 2.30% | ||||||||
| St. Paul Port Authority Solid Waste Disposal Revenue | ||||||||
| (Gerdau St. Paul Steel Mill Project) | ||||||||
| Series 7 144A 4.50% 10/1/37 # | 5,350,000 | 4,949,606 | ||||||
| 4,949,606 | ||||||||
| Lease Revenue Bonds — 2.27% | ||||||||
| Hibbing Independent School District No. 701 | ||||||||
| Series A 3.00% 3/1/41 | 500,000 | 416,595 | ||||||
| Minnesota General Fund Revenue Appropriations | ||||||||
| Series A 5.00% 6/1/38 | 1,750,000 | 1,753,395 | ||||||
| Series A 5.00% 6/1/43 | 1,000,000 | 1,001,450 | ||||||
| Minnesota Housing Finance Agency | ||||||||
| (State Appropriation - Housing Infrastructure) | ||||||||
| Series C 5.00% 8/1/32 | 1,415,000 | 1,446,937 | ||||||
| (State Appropriation) | ||||||||
| 5.00% 8/1/31 | 250,000 | 250,392 | ||||||
| 4,868,769 | ||||||||
| Local General Obligation Bonds — 7.52% | ||||||||
| Anoka-Hennepin Independent School District No. 11 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 3.00% 2/1/43 | 500,000 | 417,215 | ||||||
| Series A 3.00% 2/1/45 | 750,000 | 611,767 | ||||||
40
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Local General Obligation Bonds (continued) | ||||||||
| Cass Lake-Bena Independent School District No. 115 | ||||||||
| (Minnesota School District Credit Enhancement Program) | ||||||||
| Series A 4.00% 2/1/41 | 375,000 | $ | 369,923 | |||||
| Series A 4.00% 2/1/42 | 925,000 | 907,036 | ||||||
| Series A 4.00% 2/1/43 | 800,000 | 779,192 | ||||||
| City of Minneapolis | ||||||||
| (Green Bonds) | ||||||||
| 3.00% 12/1/42 | 1,000,000 | 837,200 | ||||||
| Duluth General Obligation Entertainment Convention Center Improvement | ||||||||
| Series A 5.00% 2/1/34 | 1,000,000 | 1,041,170 | ||||||
| Duluth Independent School District No. 709 | ||||||||
| Series A 4.00% 2/1/27 | 440,000 | 446,574 | ||||||
| Series A 4.20% 3/1/34 | 750,000 | 703,942 | ||||||
| Elk River Independent School District No. 728 | ||||||||
| Series A 3.00% 2/1/40 | 530,000 | 452,207 | ||||||
| Hennepin County | ||||||||
| Series A 5.00% 12/1/37 | 910,000 | 986,749 | ||||||
| Series C 5.00% 12/1/37 | 2,500,000 | 2,640,950 | ||||||
| Mahtomedi Independent School District No. 832 | ||||||||
| (School Building) | ||||||||
| Series A 5.00% 2/1/28 | 1,000,000 | 1,031,810 | ||||||
| Series A 5.00% 2/1/29 | 1,000,000 | 1,030,310 | ||||||
| Series A 5.00% 2/1/31 | 1,000,000 | 1,028,060 | ||||||
| Minneapolis Special School District No. 1 | ||||||||
| Series A 4.00% 2/1/37 | 215,000 | 218,238 | ||||||
| Series A 4.00% 2/1/38 | 220,000 | 221,353 | ||||||
| Series B 4.00% 2/1/37 | 445,000 | 451,701 | ||||||
| Series B 4.00% 2/1/38 | 465,000 | 467,860 | ||||||
| Wayzata Independent School District No. 284 | ||||||||
| (School Building) | ||||||||
| Series A 5.00% 2/1/28 | 650,000 | 705,036 | ||||||
| White Bear Lake Independent School District No. 624 | ||||||||
| Series A 3.00% 2/1/42 | 1,000,000 | 824,400 | ||||||
| 16,172,693 | ||||||||
| Pre-Refunded/Escrowed to Maturity Bonds — 2.08% | ||||||||
| Deephaven Charter School Lease Revenue | ||||||||
| (Eagle Ridge Academy Project) | ||||||||
| Series A 5.50% 7/1/43-23 § | 500,000 | 503,725 | ||||||
41
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| Pre-Refunded/Escrowed to Maturity Bonds (continued) | ||||||||
| Rochester Health Care Facilities Revenue | ||||||||
| (Olmsted Medical Center Project) | ||||||||
| 5.00% 7/1/27-23 § | 245,000 | $ | 246,385 | |||||
| 5.00% 7/1/28-23 § | 225,000 | 226,271 | ||||||
| St. Paul Housing & Redevelopment Authority Hospital Facility Revenue | ||||||||
| (Healtheast Care System Project) | ||||||||
| Series A 5.00% 11/15/29-25 § | 275,000 | 288,442 | ||||||
| Series A 5.00% 11/15/30-25 § | 205,000 | 215,020 | ||||||
| Western Minnesota Municipal Power Agency Revenue | ||||||||
| Series A 5.00% 1/1/30-24 § | 500,000 | 507,720 | ||||||
| Series A 5.00% 1/1/34-24 § | 450,000 | 456,948 | ||||||
| Series A 5.00% 1/1/40-24 § | 2,000,000 | 2,030,880 | ||||||
| 4,475,391 | ||||||||
| Special Tax Revenue Bonds — 5.20% | ||||||||
| Commonwealth of Puerto Rico | ||||||||
| 2.632% 11/1/43 ● | 1,594,652 | 687,694 | ||||||
| (Restructured) | ||||||||
| Series A-1 4.00% 7/1/41 | 707,440 | 584,388 | ||||||
| Minneapolis Revenue | ||||||||
| (YMCA Greater Twin Cities Project) | ||||||||
| 4.00% 6/1/31 | 250,000 | 254,957 | ||||||
| Minneapolis Tax Increment Revenue | ||||||||
| (Grant Park Project) | ||||||||
| 4.00% 3/1/27 | 200,000 | 197,070 | ||||||
| 4.00% 3/1/30 | 260,000 | 250,216 | ||||||
| (Village of St. Anthony Falls Project) | ||||||||
| 4.00% 3/1/24 | 700,000 | 697,998 | ||||||
| 4.00% 3/1/27 | 650,000 | 640,478 | ||||||
| Puerto Rico Sales Tax Financing Revenue | ||||||||
| (Restructured) | ||||||||
| Series A-1 4.75% 7/1/53 | 4,155,000 | 3,724,459 | ||||||
| Series A-1 5.00% 7/1/58 | 275,000 | 255,145 | ||||||
| Series A-1 5.721% 7/1/51 ^ | 6,809,000 | 1,284,722 | ||||||
| Series A-2 4.536% 7/1/53 | 3,000,000 | 2,594,340 | ||||||
| 11,171,467 | ||||||||
| State General Obligation Bonds — 5.84% | ||||||||
| Minnesota State | ||||||||
| Series A 4.00% 9/1/38 | 550,000 | 571,676 | ||||||
| Series A 5.00% 8/1/27 | 750,000 | 785,242 | ||||||
| Series A 5.00% 9/1/31 | 1,250,000 | 1,473,550 | ||||||
42
| Principal amount° |
Value (US $) |
|||||||
| Municipal Bonds (continued) | ||||||||
| State General Obligation Bonds (continued) | ||||||||
| Minnesota State | ||||||||
| Series A 5.00% 8/1/33 | 660,000 | $ | 736,039 | |||||
| Series A 5.00% 8/1/34 | 2,185,000 | 2,423,493 | ||||||
| Series A 5.00% 8/1/39 | 500,000 | 570,730 | ||||||
| Series A 5.00% 8/1/40 | 750,000 | 832,425 | ||||||
| Series A 5.00% 8/1/41 | 860,000 | 970,974 | ||||||
| Series D 5.00% 8/1/27 | 1,000,000 | 1,065,860 | ||||||
| Series E 5.00% 10/1/26 | 1,085,000 | 1,164,975 | ||||||
| (Various Purposes) | ||||||||
| Series A 5.00% 8/1/32 | 1,915,000 | 1,967,299 | ||||||
| 12,562,263 | ||||||||
| Transportation Revenue Bonds — 4.04% | ||||||||
| Minneapolis – St. Paul Metropolitan Airports Commission Revenue | ||||||||
| (Private Activity) | ||||||||
| Series B 5.00% 1/1/39 (AMT) | 500,000 | 520,770 | ||||||
| Series B 5.25% 1/1/47 (AMT) | 500,000 | 522,690 | ||||||
| (Senior) | ||||||||
| Series C 5.00% 1/1/46 | 185,000 | 190,546 | ||||||
| (Subordinate) | ||||||||
| Series A 5.00% 1/1/44 | 4,000,000 | 4,173,600 | ||||||
| Series B 5.00% 1/1/31 (AMT) | 420,000 | 451,563 | ||||||
| Series B 5.00% 1/1/44 (AMT) | 2,150,000 | 2,208,437 | ||||||
| Series B 5.00% 1/1/47 (AMT) | 600,000 | 616,452 | ||||||
| 8,684,058 | ||||||||
| Water & Sewer Revenue Bonds — 0.95% | ||||||||
| Metropolitan Council General Obligation Wastewater Revenue | ||||||||
| (Minneapolis – St. Paul Metropolitan Area) | ||||||||
| Series C 4.00% 3/1/31 | 965,000 | 1,009,332 | ||||||
| Series C 4.00% 3/1/32 | 1,000,000 | 1,042,150 | ||||||
| 2,051,482 | ||||||||
| Total Municipal Bonds (cost $220,779,485) | 205,988,234 | |||||||
| Short-Term Investments — 1.72% | ||||||||
| Variable Rate Demand Notes — 1.72% ¤ | ||||||||
| Minneapolis Health Care System Revenue | ||||||||
| (Fairview Health Services) | ||||||||
| Series C 2.65% 11/15/48 | ||||||||
| (LOC – Wells Fargo Bank N.A.) | 2,200,000 | 2,200,000 | ||||||
43
Schedules of investments
Delaware Minnesota High-Yield Municipal Bond Fund
| Principal amount° |
Value (US $) |
|||||||
| Short-Term Investments (continued) | ||||||||
| Variable Rate Demand Notes (continued) | ||||||||
| Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue | ||||||||
| (Allina Health System) | ||||||||
| Series B-1A 2.48% 11/15/35 | ||||||||
| (LOC – JPMorgan Chase Bank N.A.) | 500,000 | $ | 500,000 | |||||
| Series B-2 2.45% 11/15/35 | ||||||||
| (LOC – JPMorgan Chase Bank N.A.) | 1,000,000 | 1,000,000 | ||||||
| Total Short-Term Investments (cost $3,700,000) | 3,700,000 | |||||||
| Total Value of Securities—97.54% | ||||||||
| (cost $224,479,485) | $ | 209,688,234 | ||||||
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. | |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At February 28, 2023, the aggregate value of Rule 144A securities was $11,695,294, which represents 5.44% of the Fund’s net assets. See Note 6 in “Notes to financial statements.” | |
| ‡ | Non-income producing security. Security is currently in default. | |
| § | Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 6 in “Notes to financial statements.” | |
| ● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at February 28, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. | |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. | |
| ¤ | 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 February 28, 2023. |
44
Summary of abbreviations:
AMT – Subject to Alternative Minimum Tax
ICE – Intercontinental Exchange, Inc.
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LLC – Limited Liability Corporation
LOC – Letter of Credit
N.A. – National Association
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
45
Statements of assets and liabilities
February 28, 2023 (Unaudited)
| Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield Municipal Bond Fund |
||||||||||
| Assets: | ||||||||||||
| Investments, at value* | $ | 502,426,992 | $ | 70,042,399 | $ | 209,688,234 | ||||||
| Cash | — | 470,926 | 3,036,831 | |||||||||
| Interest receivable | 5,818,887 | 781,678 | 2,579,451 | |||||||||
| Receivable for fund shares sold | 2,356,086 | 31,081 | 292,785 | |||||||||
| Prepaid expenses | 148,590 | 23,383 | 11,902 | |||||||||
| Other assets | 4,100 | 605 | 1,586 | |||||||||
| Total Assets | 510,754,655 | 71,350,072 | 215,610,789 | |||||||||
| Liabilities: | ||||||||||||
| Due to custodian | 796,367 | — | — | |||||||||
| Payable for fund shares redeemed | 2,596,605 | 70,381 | 393,401 | |||||||||
| Other accrued expenses | 299,661 | 80,718 | 148,090 | |||||||||
| Distribution payable | 219,798 | 13,401 | 11,043 | |||||||||
| Investment management fees payable to affiliates | 124,705 | 26 | 45,194 | |||||||||
| Distribution fees payable to affiliates | 65,868 | 11,334 | 27,118 | |||||||||
| Administration expenses payable to affiliates | 35,766 | 10,651 | 17,399 | |||||||||
| Total Liabilities | 4,138,770 | 186,511 | 642,245 | |||||||||
| Total Net Assets | $ | 506,615,885 | $ | 71,163,561 | $ | 214,968,544 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in capital | $ | 548,629,963 | $ | 76,664,201 | $ | 236,236,381 | ||||||
| Total distributable earnings (loss) | (42,014,078 | ) | (5,500,640 | ) | (21,267,837 | ) | ||||||
| Total Net Assets | $ | 506,615,885 | $ | 71,163,561 | $ | 214,968,544 | ||||||
46
| Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield Municipal Bond Fund |
|||||||||||
| Net Asset Value | |||||||||||||
| Class A: | |||||||||||||
| Net assets | $ | 294,034,353 | $ | 50,125,599 | $ | 97,989,023 | |||||||
| Shares of beneficial interest outstanding, unlimited authorization, no par | 26,504,572 | 5,047,085 | 10,016,241 | ||||||||||
| Net asset value per share | $ | 11.09 | $ | 9.93 | $ | 9.78 | |||||||
| Sales charge | 4.50 | % | 2.75 | % | 4.50 | % | |||||||
| Offering price per share, equal to net asset value per share / (1 - sales charge) | $ | 11.61 | $ | 10.21 | $ | 10.24 | |||||||
| Class C: | |||||||||||||
| Net assets | $ | 10,134,692 | $ | 1,925,554 | $ | 10,167,134 | |||||||
| Shares of beneficial interest outstanding, unlimited authorization, no par | 910,504 | 193,488 | 1,037,266 | ||||||||||
| Net asset value per share | $ | 11.13 | $ | 9.95 | $ | 9.80 | |||||||
| Institutional Class: | |||||||||||||
| Net assets | $ | 202,446,840 | $ | 19,112,408 | $ | 106,812,387 | |||||||
| Shares of beneficial interest outstanding, unlimited authorization, no par | 18,253,274 | 1,923,725 | 10,921,799 | ||||||||||
| Net asset value per share | $ | 11.09 | $ | 9.94 | $ | 9.78 | |||||||
|
|
|||||||||||||
| * | Investments, at cost | $ | 526,737,876 | $ | 72,408,590 | $ | 224,479,485 | ||||||
See accompanying notes, which are an integral part of the financial statements.
47
Six months ended February 28, 2023 (Unaudited)
| Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield Municipal Bond Fund |
||||||||||
| Investment Income: | ||||||||||||
| Interest | $ | 9,339,873 | $ | 1,273,919 | $ | 4,189,813 | ||||||
| Expenses: | ||||||||||||
| Management fees | 1,388,176 | 187,336 | 567,765 | |||||||||
| Distribution expenses — Class A | 370,135 | 62,140 | 120,072 | |||||||||
| Distribution expenses — Class C | 56,704 | 9,935 | 52,797 | |||||||||
| Dividend disbursing and transfer agent fees and expenses | 188,877 | 29,789 | 92,404 | |||||||||
| Accounting and administration expenses | 54,793 | 24,539 | 33,570 | |||||||||
| Registration fees | 26,911 | 7,821 | 7,119 | |||||||||
| Reports and statements to shareholders expenses | 23,917 | 6,183 | 10,096 | |||||||||
| Audit and tax fees | 20,145 | 20,145 | 20,145 | |||||||||
| Legal fees | 17,590 | 2,677 | 6,444 | |||||||||
| Trustees’ fees and expenses | 11,917 | 1,701 | 4,527 | |||||||||
| Custodian fees | 8,569 | 1,254 | 3,349 | |||||||||
| Other | 30,046 | 12,202 | 19,118 | |||||||||
| 2,197,780 | 365,722 | 937,406 | ||||||||||
| Less expenses waived | (261,791 | ) | (83,766 | ) | (121,215 | ) | ||||||
| Less expenses paid indirectly | (32 | ) | (5 | ) | (13 | ) | ||||||
| Total operating expenses | 1,935,957 | 281,951 | 816,178 | |||||||||
| Net Investment Income (Loss) | 7,403,916 | 991,968 | 3,373,635 | |||||||||
48
| Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield Municipal Bond Fund |
||||||||||
| Net Realized and Unrealized Gain (Loss): | ||||||||||||
| Net realized gain (loss) on investments | $ | (11,334,080 | ) | $ | (2,128,074 | ) | $ | (3,836,988 | ) | |||
| Net change in unrealized appreciation (depreciation) on investments | (1,653,730 | ) | 1,080,214 | (2,952,290 | ) | |||||||
| Net Realized and Unrealized Gain (Loss) | (12,987,810 | ) | (1,047,860 | ) | (6,789,278 | ) | ||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (5,583,894 | ) | $ | (55,892 | ) | $ | (3,415,643 | ) | |||
See accompanying notes, which are an integral part of the financial statements.
49
Statements of changes in net assets
Delaware Tax-Free Minnesota Fund
| Delaware Tax-Free Minnesota Fund |
||||||||
| Six months ended 2/28/23 (Unaudited) |
Year ended 8/31/22 |
|||||||
| Increase (Decrease) in Net Assets from Operations: | ||||||||
| Net investment income (loss) | $ | 7,403,916 | $ | 13,338,910 | ||||
| Net realized gain (loss) | (11,334,080 | ) | (5,994,882 | ) | ||||
| Net change in unrealized appreciation (depreciation) | (1,653,730 | ) | (58,761,630 | ) | ||||
| Net increase (decrease) in net assets resulting from operations | (5,583,894 | ) | (51,417,602 | ) | ||||
| Dividends and Distributions to Shareholders from: | ||||||||
| Distributable earnings: | ||||||||
| Class A | (4,187,710 | ) | (7,696,597 | ) | ||||
| Class C | (117,594 | ) | (224,436 | ) | ||||
| Institutional Class | (3,054,602 | ) | (5,374,031 | ) | ||||
| (7,359,906 | ) | (13,295,064 | ) | |||||
| Capital Share Transactions: | ||||||||
| Proceeds from shares sold: | ||||||||
| Class A | 54,744,216 | 78,404,017 | ||||||
| Class C | 1,013,923 | 1,924,033 | ||||||
| Institutional Class | 96,445,579 | 123,458,808 | ||||||
| Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
| Class A | 3,893,471 | 7,030,872 | ||||||
| Class C | 116,902 | 222,610 | ||||||
| Institutional Class | 1,953,002 | 3,728,698 | ||||||
| 158,167,093 | 214,769,038 | |||||||
50
| Delaware Tax-Free Minnesota Fund |
||||||||
| Six months ended 2/28/23 (Unaudited) |
Year ended 8/31/22 |
|||||||
| Capital Share Transactions (continued): | ||||||||
| Cost of shares redeemed: | ||||||||
| Class A | $ | (74,445,492 | ) | $ | (105,934,797 | ) | ||
| Class C | (3,545,237 | ) | (4,721,588 | ) | ||||
| Institutional Class | (101,960,005 | ) | (109,837,221 | ) | ||||
| (179,950,734 | ) | (220,493,606 | ) | |||||
| Decrease in net assets derived from capital share transactions | (21,783,641 | ) | (5,724,568 | ) | ||||
| Net Decrease in Net Assets | (34,727,441 | ) | (70,437,234 | ) | ||||
| Net Assets: | ||||||||
| Beginning of period | 541,343,326 | 611,780,560 | ||||||
| End of period | $ | 506,615,885 | $ | 541,343,326 | ||||
See accompanying notes, which are an integral part of the financial statements.
51
Statements of changes in net assets
Delaware Tax-Free Minnesota Intermediate Fund
| Delaware Tax-Free Minnesota Intermediate Fund |
||||||||
| Six months ended 2/28/23 (Unaudited) |
Year ended 8/31/22 |
|||||||
| Increase (Decrease) in Net Assets from Operations: | ||||||||
| Net investment income (loss) | $ | 991,968 | $ | 1,813,825 | ||||
| Net realized gain (loss) | (2,128,074 | ) | (858,493 | ) | ||||
| Net change in unrealized appreciation (depreciation) | 1,080,214 | (8,048,203 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | (55,892 | ) | (7,092,871 | ) | ||||
| Dividends and Distributions to Shareholders from: | ||||||||
| Distributable earnings: | ||||||||
| Class A | (639,108 | ) | (1,236,691 | ) | ||||
| Class C | (18,021 | ) | (35,021 | ) | ||||
| Institutional Class | (325,203 | ) | (539,394 | ) | ||||
| (982,332 | ) | (1,811,106 | ) | |||||
| Capital Share Transactions: | ||||||||
| Proceeds from shares sold: | ||||||||
| Class A | 9,436,692 | 4,787,242 | ||||||
| Class C | 217,307 | 354,310 | ||||||
| Institutional Class | 10,010,673 | 16,667,624 | ||||||
| Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
| Class A | 562,300 | 1,081,064 | ||||||
| Class C | 17,995 | 34,988 | ||||||
| Institutional Class | 320,617 | 530,155 | ||||||
| 20,565,584 | 23,455,383 | |||||||
52
| Delaware Tax-Free Minnesota Intermediate Fund |
||||||||
| Six months ended 2/28/23 (Unaudited) |
Year ended 8/31/22 |
|||||||
| Capital Share Transactions (continued): | ||||||||
| Cost of shares redeemed: | ||||||||
| Class A | $ | (10,479,650 | ) | $ | (11,647,254 | ) | ||
| Class C | (498,737 | ) | (869,136 | ) | ||||
| Institutional Class | (16,549,883 | ) | (13,305,865 | ) | ||||
| (27,528,270 | ) | (25,822,255 | ) | |||||
| Decrease in net assets derived from capital share transactions | (6,962,686 | ) | (2,366,872 | ) | ||||
| Net Decrease in Net Assets | (8,000,910 | ) | (11,270,849 | ) | ||||
| Net Assets: | ||||||||
| Beginning of period | 79,164,471 | 90,435,320 | ||||||
| End of period | $ | 71,163,561 | $ | 79,164,471 | ||||
See accompanying notes, which are an integral part of the financial statements.
53
Statements of changes in net assets
Delaware Minnesota High-Yield Municipal Bond Fund
| Delaware Minnesota High-Yield Municipal Bond Fund |
||||||||
| Six months ended 2/28/23 (Unaudited) |
Year ended 8/31/22 |
|||||||
| Increase (Decrease) in Net Assets from Operations: | ||||||||
| Net investment income (loss) | $ | 3,373,635 | $ | 5,933,666 | ||||
| Net realized gain (loss) | (3,836,988 | ) | (2,014,639 | ) | ||||
| Net change in unrealized appreciation (depreciation) | (2,952,290 | ) | (24,508,368 | ) | ||||
| Net increase (decrease) in net assets resulting from operations | (3,415,643 | ) | (20,589,341 | ) | ||||
| Dividends and Distributions to Shareholders from: | ||||||||
| Distributable earnings: | ||||||||
| Class A | (1,517,200 | ) | (2,698,669 | ) | ||||
| Class C | (126,846 | ) | (232,692 | ) | ||||
| Institutional Class | (1,700,287 | ) | (2,961,633 | ) | ||||
| (3,344,333 | ) | (5,892,994 | ) | |||||
| Capital Share Transactions: | ||||||||
| Proceeds from shares sold: | ||||||||
| Class A | 20,197,715 | 16,556,227 | ||||||
| Class C | 1,280,337 | 2,605,070 | ||||||
| Institutional Class | 40,563,451 | 55,946,931 | ||||||
| Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||
| Class A | 1,466,651 | 2,584,003 | ||||||
| Class C | 125,592 | 230,068 | ||||||
| Institutional Class | 1,680,571 | 2,920,723 | ||||||
| 65,314,317 | 80,843,022 | |||||||
54
| Delaware Minnesota High-Yield Municipal Bond Fund |
||||||||
| Six months ended 2/28/23 (Unaudited) |
Year ended 8/31/22 |
|||||||
| Capital Share Transactions (continued): | ||||||||
| Cost of shares redeemed: | ||||||||
| Class A | $ | (19,312,176 | ) | $ | (20,548,181 | ) | ||
| Class C | (2,362,363 | ) | (4,141,665 | ) | ||||
| Institutional Class | (39,278,787 | ) | (42,013,074 | ) | ||||
| (60,953,326 | ) | (66,702,920 | ) | |||||
| Increase in net assets derived from capital share transactions | 4,360,991 | 14,140,102 | ||||||
| Net Decrease in Net Assets | (2,398,985 | ) | (12,342,233 | ) | ||||
| Net Assets: | ||||||||
| Beginning of period | 217,367,529 | 229,709,762 | ||||||
| End of period | $ | 214,968,544 | $ | 217,367,529 | ||||
See accompanying notes, which are an integral part of the financial statements.
55
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 income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Net realized gain |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
56
| Six months ended 2/28/231 |
Year ended | ||||||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 11.36 | $ | 12.70 | $ | 12.49 | $ | 12.68 | $ | 12.14 | $ | 12.54 | ||||||||||||
| 0.16 | 0.27 | 0.29 | 0.31 | 0.36 | 0.37 | ||||||||||||||||||
| (0.27 | ) | (1.34 | ) | 0.21 | (0.16 | ) | 0.54 | (0.34 | ) | ||||||||||||||
| (0.11 | ) | (1.07 | ) | 0.50 | 0.15 | 0.90 | 0.03 | ||||||||||||||||
| (0.16 | ) | (0.27 | ) | (0.29 | ) | (0.31 | ) | (0.36 | ) | (0.37 | ) | ||||||||||||
| — | — | — | (0.03 | ) | — | (0.06 | ) | ||||||||||||||||
| (0.16 | ) | (0.27 | ) | (0.29 | ) | (0.34 | ) | (0.36 | ) | (0.43 | ) | ||||||||||||
| $ | 11.09 | $ | 11.36 | $ | 12.70 | $ | 12.49 | $ | 12.68 | $ | 12.14 | ||||||||||||
| (0.99 | )% | (8.51 | )% | 4.05 | % | 1.30 | % | 7.54 | % | 0.26 | % | ||||||||||||
| $ | 294,034 | $ | 317,184 | $ | 375,799 | $ | 373,691 | $ | 386,790 | $ | 390,477 | ||||||||||||
| 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | ||||||||||||
| 0.95 | % | 0.93 | % | 0.93 | % | 0.93 | % | 0.93 | % | 0.94 | % | ||||||||||||
| 2.85 | % | 2.25 | % | 2.30 | % | 2.53 | % | 2.92 | % | 2.99 | % | ||||||||||||
| 2.75 | % | 2.17 | % | 2.22 | % | 2.45 | % | 2.84 | % | 2.90 | % | ||||||||||||
| 17 | % | 24 | % | 3 | % | 15 | % | 13 | % | 16 | % | ||||||||||||
57
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 income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Net realized gain |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
58
| |
Six months ended 2/28/231 |
|
|
Year ended | | ||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 11.40 | $ | 12.75 | $ | 12.53 | $ | 12.72 | $ | 12.18 | $ | 12.58 | ||||||||||||
| 0.11 | 0.18 | 0.20 | 0.22 | 0.27 | 0.28 | ||||||||||||||||||
| (0.27 | ) | (1.35 | ) | 0.22 | (0.16 | ) | 0.54 | (0.34 | ) | ||||||||||||||
| (0.16 | ) | (1.17 | ) | 0.42 | 0.06 | 0.81 | (0.06 | ) | |||||||||||||||
| (0.11 | ) | (0.18 | ) | (0.20 | ) | (0.22 | ) | (0.27 | ) | (0.28 | ) | ||||||||||||
| — | — | — | (0.03 | ) | — | (0.06 | ) | ||||||||||||||||
| (0.11 | ) | (0.18 | ) | (0.20 | ) | (0.25 | ) | (0.27 | ) | (0.34 | ) | ||||||||||||
| $ | 11.13 | $ | 11.40 | $ | 12.75 | $ | 12.53 | $ | 12.72 | $ | 12.18 | ||||||||||||
| (1.35 | )% | (9.23 | )% | 3.35 | % | 0.54 | % | 6.73 | % | (0.49 | )% | ||||||||||||
| $ | 10,135 | $ | 12,837 | $ | 17,096 | $ | 25,219 | $ | 29,933 | $ | 35,642 | ||||||||||||
| 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | ||||||||||||
| 1.70 | % | 1.68 | % | 1.68 | % | 1.68 | % | 1.68 | % | 1.69 | % | ||||||||||||
| 2.10 | % | 1.50 | % | 1.55 | % | 1.78 | % | 2.17 | % | 2.24 | % | ||||||||||||
| 2.00 | % | 1.42 | % | 1.47 | % | 1.70 | % | 2.09 | % | 2.15 | % | ||||||||||||
| 17 | % | 24 | % | 3 | % | 15 | % | 13 | % | 16 | % | ||||||||||||
59
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 income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Net realized gain |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
60
| |
Six months ended 2/28/231 |
|
|
Year ended | | ||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 11.36 | $ | 12.70 | $ | 12.49 | $ | 12.68 | $ | 12.14 | $ | 12.54 | ||||||||||||
| 0.17 | 0.30 | 0.32 | 0.34 | 0.39 | 0.40 | ||||||||||||||||||
| (0.27 | ) | (1.34 | ) | 0.21 | (0.16 | ) | 0.54 | (0.34 | ) | ||||||||||||||
| (0.10 | ) | (1.04 | ) | 0.53 | 0.18 | 0.93 | 0.06 | ||||||||||||||||
| (0.17 | ) | (0.30 | ) | (0.32 | ) | (0.34 | ) | (0.39 | ) | (0.40 | ) | ||||||||||||
| — | — | — | (0.03 | ) | — | (0.06 | ) | ||||||||||||||||
| (0.17 | ) | (0.30 | ) | (0.32 | ) | (0.37 | ) | (0.39 | ) | (0.46 | ) | ||||||||||||
| $ | 11.09 | $ | 11.36 | $ | 12.70 | $ | 12.49 | $ | 12.68 | $ | 12.14 | ||||||||||||
| (0.87 | )% | (8.28 | )% | 4.31 | % | 1.55 | % | 7.81 | % | 0.51 | % | ||||||||||||
| $ | 202,447 | $ | 211,322 | $ | 218,886 | $ | 181,242 | $ | 169,241 | $ | 119,894 | ||||||||||||
| 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||||
| 0.70 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.69 | % | ||||||||||||
| 3.10 | % | 2.50 | % | 2.55 | % | 2.78 | % | 3.17 | % | 3.24 | % | ||||||||||||
| 3.00 | % | 2.42 | % | 2.47 | % | 2.70 | % | 3.09 | % | 3.15 | % | ||||||||||||
| 17 | % | 24 | % | 3 | % | 15 | % | 13 | % | 16 | % | ||||||||||||
61
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 income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Net realized gain |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
62
| |
Six months ended 2/28/231 |
|
|
Year ended | | ||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 10.07 | $ | 11.22 | $ | 11.10 | $ | 11.25 | $ | 10.82 | $ | 11.17 | ||||||||||||
| 0.13 | 0.23 | 0.23 | 0.27 | 0.31 | 0.30 | ||||||||||||||||||
| (0.14 | ) | (1.15 | ) | 0.11 | (0.15 | ) | 0.43 | (0.31 | ) | ||||||||||||||
| (0.01 | ) | (0.92 | ) | 0.34 | 0.12 | 0.74 | (0.01 | ) | |||||||||||||||
| (0.13 | ) | (0.23 | ) | (0.22 | ) | (0.27 | ) | (0.31 | ) | (0.30 | ) | ||||||||||||
| — | — | — | — | — | (0.04 | ) | |||||||||||||||||
| (0.13 | ) | (0.23 | ) | (0.22 | ) | (0.27 | ) | (0.31 | ) | (0.34 | ) | ||||||||||||
| $ | 9.93 | $ | 10.07 | $ | 11.22 | $ | 11.10 | $ | 11.25 | $ | 10.82 | ||||||||||||
| (0.12 | )% | (8.32 | )% | 3.13 | % | 1.08 | % | 7.00 | % | (0.01 | )% | ||||||||||||
| $ | 50,126 | $ | 51,298 | $ | 63,499 | $ | 57,788 | $ | 55,918 | $ | 59,284 | ||||||||||||
| 0.81 | % | 0.78 | % | 0.71 | % | 0.71 | % | 0.71 | % | 0.79 | % | ||||||||||||
| 1.03 | % | 1.01 | % | 1.00 | % | 1.02 | % | 1.04 | % | 1.00 | % | ||||||||||||
| 2.59 | % | 2.11 | % | 2.01 | % | 2.39 | % | 2.87 | % | 2.77 | % | ||||||||||||
| 2.37 | % | 1.88 | % | 1.72 | % | 2.08 | % | 2.54 | % | 2.56 | % | ||||||||||||
| 16 | % | 28 | % | 7 | % | 20 | % | 19 | % | 17 | % | ||||||||||||
63
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 income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Net realized gain |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
64
| Six months ended 2/28/231 |
|
|
Year ended | | |||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 10.09 | $ | 11.24 | $ | 11.12 | $ | 11.27 | $ | 10.84 | $ | 11.19 | ||||||||||||
| 0.09 | 0.14 | 0.13 | 0.17 | 0.22 | 0.21 | ||||||||||||||||||
| (0.14 | ) | (1.15 | ) | 0.12 | (0.15 | ) | 0.43 | (0.31 | ) | ||||||||||||||
| (0.05 | ) | (1.01 | ) | 0.25 | 0.02 | 0.65 | (0.10 | ) | |||||||||||||||
| (0.09 | ) | (0.14 | ) | (0.13 | ) | (0.17 | ) | (0.22 | ) | (0.21 | ) | ||||||||||||
| — | — | — | — | — | (0.04 | ) | |||||||||||||||||
| (0.09 | ) | (0.14 | ) | (0.13 | ) | (0.17 | ) | (0.22 | ) | (0.25 | ) | ||||||||||||
| $ | 9.95 | $ | 10.09 | $ | 11.24 | $ | 11.12 | $ | 11.27 | $ | 10.84 | ||||||||||||
| (0.49 | )% | (9.02 | )% | 2.26 | % | 0.22 | % | 6.09 | % | (0.86 | )% | ||||||||||||
| $ | 1,926 | $ | 2,222 | $ | 2,990 | $ | 5,149 | $ | 7,167 | $ | 8,558 | ||||||||||||
| 1.56 | % | 1.56 | % | 1.56 | % | 1.56 | % | 1.56 | % | 1.64 | % | ||||||||||||
| 1.78 | % | 1.76 | % | 1.75 | % | 1.77 | % | 1.79 | % | 1.75 | % | ||||||||||||
| 1.84 | % | 1.33 | % | 1.16 | % | 1.54 | % | 2.02 | % | 1.92 | % | ||||||||||||
| 1.62 | % | 1.13 | % | 0.97 | % | 1.33 | % | 1.79 | % | 1.81 | % | ||||||||||||
| 16 | % | 28 | % | 7 | % | 20 | % | 19 | % | 17 | % | ||||||||||||
65
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 income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Net realized gain |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
66
| Six months ended 2/28/231 | Year ended | ||||||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 10.07 | $ | 11.22 | $ | 11.10 | $ | 11.25 | $ | 10.83 | $ | 11.17 | ||||||||||||
| 0.14 | 0.25 | 0.24 | 0.28 | 0.33 | 0.32 | ||||||||||||||||||
| (0.13 | ) | (1.15 | ) | 0.12 | (0.15 | ) | 0.42 | (0.30 | ) | ||||||||||||||
| 0.01 | (0.90 | ) | 0.36 | 0.13 | 0.75 | 0.02 | |||||||||||||||||
| (0.14 | ) | (0.25 | ) | (0.24 | ) | (0.28 | ) | (0.33 | ) | (0.32 | ) | ||||||||||||
| — | — | — | — | — | (0.04 | ) | |||||||||||||||||
| (0.14 | ) | (0.25 | ) | (0.24 | ) | (0.28 | ) | (0.33 | ) | (0.36 | ) | ||||||||||||
| $ | 9.94 | $ | 10.07 | $ | 11.22 | $ | 11.10 | $ | 11.25 | $ | 10.83 | ||||||||||||
| 0.10 | % | (8.12 | )% | 3.29 | % | 1.23 | % | 7.06 | % | 0.23 | % | ||||||||||||
| $ | 19,112 | $ | 25,644 | $ | 23,946 | $ | 24,848 | $ | 17,718 | $ | 11,470 | ||||||||||||
| 0.56 | % | 0.56 | % | 0.56 | % | 0.56 | % | 0.56 | % | 0.64 | % | ||||||||||||
| 0.78 | % | 0.76 | % | 0.75 | % | 0.77 | % | 0.79 | % | 0.75 | % | ||||||||||||
| 2.84 | % | 2.33 | % | 2.16 | % | 2.54 | % | 3.02 | % | 2.92 | % | ||||||||||||
| 2.62 | % | 2.13 | % | 1.97 | % | 2.33 | % | 2.79 | % | 2.81 | % | ||||||||||||
| 16 | % | 28 | % | 7 | % | 20 | % | 19 | % | 17 | % | ||||||||||||
67
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Net asset value, beginning of period |
| Income (loss) from investment operations: |
| Net investment income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
68
| Six months ended 2/28/231 |
|
|
Year ended | | |||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 10.08 | $ | 11.34 | $ | 11.00 | $ | 11.21 | $ | 10.66 | $ | 10.88 | ||||||||||||
| 0.15 | 0.27 | 0.28 | 0.29 | 0.32 | 0.32 | ||||||||||||||||||
| (0.30 | ) | (1.26 | ) | 0.34 | (0.21 | ) | 0.55 | (0.22 | ) | ||||||||||||||
| (0.15 | ) | (0.99 | ) | 0.62 | 0.08 | 0.87 | 0.10 | ||||||||||||||||
| (0.15 | ) | (0.27 | ) | (0.28 | ) | (0.29 | ) | (0.32 | ) | (0.32 | ) | ||||||||||||
| (0.15 | ) | (0.27 | ) | (0.28 | ) | (0.29 | ) | (0.32 | ) | (0.32 | ) | ||||||||||||
| $ | 9.78 | $ | 10.08 | $ | 11.34 | $ | 11.00 | $ | 11.21 | $ | 10.66 | ||||||||||||
| (1.44 | )% | (8.79 | )% | 5.71 | % | 0.81 | % | 8.33 | % | 0.95 | % | ||||||||||||
| $ | 97,989 | $ | 98,592 | $ | 112,606 | $ | 103,913 | $ | 103,487 | $ | 98,980 | ||||||||||||
| 0.87 | % | 0.88 | % | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | ||||||||||||
| 0.99 | % | 0.98 | % | 0.97 | % | 0.97 | % | 0.99 | % | 0.99 | % | ||||||||||||
| 3.19 | % | 2.58 | % | 2.52 | % | 2.69 | % | 2.97 | % | 2.98 | % | ||||||||||||
| 3.07 | % | 2.48 | % | 2.44 | % | 2.61 | % | 2.87 | % | 2.88 | % | ||||||||||||
| 15 | % | 23 | % | 3 | % | 18 | % | 12 | % | 14 | % | ||||||||||||
69
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Net asset value, beginning of period |
| Income (loss) from investment operations: |
| Net investment income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return4 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Amount is less than $0.005 per share. | |
| 4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
70
| Six months ended 2/28/231 |
|
|
Year ended | | |||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 10.10 | $ | 11.36 | $ | 11.02 | $ | 11.23 | $ | 10.68 | $ | 10.90 | ||||||||||||
| 0.12 | 0.19 | 0.20 | 0.21 | 0.24 | 0.24 | ||||||||||||||||||
| (0.30 | ) | (1.26 | ) | 0.34 | (0.21 | ) | 0.55 | (0.22 | ) | ||||||||||||||
| (0.18 | ) | (1.07 | ) | 0.54 | — | 3 | 0.79 | 0.02 | |||||||||||||||
| (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.21 | ) | (0.24 | ) | (0.24 | ) | ||||||||||||
| (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.21 | ) | (0.24 | ) | (0.24 | ) | ||||||||||||
| $ | 9.80 | $ | 10.10 | $ | 11.36 | $ | 11.02 | $ | 11.23 | $ | 10.68 | ||||||||||||
| (1.80 | )% | (9.46 | )% | 4.92 | % | 0.05 | % | 7.51 | % | 0.19 | % | ||||||||||||
| $ | 10,167 | $ | 11,476 | $ | 14,317 | $ | 19,376 | $ | 21,059 | $ | 21,651 | ||||||||||||
| 1.62 | % | 1.63 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||||
| 1.74 | % | 1.73 | % | 1.72 | % | 1.72 | % | 1.74 | % | 1.74 | % | ||||||||||||
| 2.44 | % | 1.82 | % | 1.77 | % | 1.94 | % | 2.22 | % | 2.23 | % | ||||||||||||
| 2.32 | % | 1.73 | % | 1.69 | % | 1.86 | % | 2.12 | % | 2.13 | % | ||||||||||||
| 15 | % | 23 | % | 3 | % | 18 | % | 12 | % | 14 | % | ||||||||||||
71
Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Net asset value, beginning of period |
| Income (loss) from investment operations: |
| Net investment income2 |
| Net realized and unrealized gain (loss) |
| Total from investment operations |
| Less dividends and distributions from: |
| Net investment income |
| Total dividends and distributions |
| Net asset value, end of period |
| Total return3 |
| Ratios and supplemental data: |
| Net assets, end of period (000 omitted) |
| Ratio of expenses to average net assets |
| Ratio of expenses to average net assets prior to fees waived |
| Ratio of net investment income to average net assets |
| Ratio of net investment income to average net assets prior to fees waived |
| Portfolio turnover |
| 1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. | |
| 2 | Calculated using average shares outstanding. | |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period 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.
72
| |
Six months ended 2/28/231 |
|
|
Year ended | | ||||||||||||||||||
| (Unaudited) | 8/31/22 | 8/31/21 | 8/31/20 | 8/31/19 | 8/31/18 | ||||||||||||||||||
| $ | 10.07 | $ | 11.33 | $ | 11.00 | $ | 11.20 | $ | 10.66 | $ | 10.87 | ||||||||||||
| 0.17 | 0.30 | 0.31 | 0.32 | 0.35 | 0.35 | ||||||||||||||||||
| (0.29 | ) | (1.26 | ) | 0.33 | (0.20 | ) | 0.54 | (0.21 | ) | ||||||||||||||
| (0.12 | ) | (0.96 | ) | 0.64 | 0.12 | 0.89 | 0.14 | ||||||||||||||||
| (0.17 | ) | (0.30 | ) | (0.31 | ) | (0.32 | ) | (0.35 | ) | (0.35 | ) | ||||||||||||
| (0.17 | ) | (0.30 | ) | (0.31 | ) | (0.32 | ) | (0.35 | ) | (0.35 | ) | ||||||||||||
| $ | 9.78 | $ | 10.07 | $ | 11.33 | $ | 11.00 | $ | 11.20 | $ | 10.66 | ||||||||||||
| (1.22 | )% | (8.58 | )% | 5.89 | % | 1.15 | % | 8.50 | % | 1.30 | % | ||||||||||||
| $ | 106,813 | $ | 107,300 | $ | 102,787 | $ | 75,325 | $ | 75,155 | $ | 53,501 | ||||||||||||
| 0.62 | % | 0.63 | % | 0.64 | % | 0.64 | % | 0.64 | % | 0.64 | % | ||||||||||||
| 0.74 | % | 0.73 | % | 0.72 | % | 0.72 | % | 0.74 | % | 0.74 | % | ||||||||||||
| 3.44 | % | 2.83 | % | 2.77 | % | 2.94 | % | 3.22 | % | 3.23 | % | ||||||||||||
| 3.32 | % | 2.73 | % | 2.69 | % | 2.86 | % | 3.12 | % | 3.13 | % | ||||||||||||
| 15 | % | 23 | % | 3 | % | 18 | % | 12 | % | 14 | % | ||||||||||||
73
Delaware Funds by Macquarie® Minnesota municipal bond funds February 28, 2023 (Unaudited)
Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund. Voyageur 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 Trust is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 2.75% for Delaware Tax-Free Minnesota Intermediate Fund. There is no front-end sales charge when you purchase $250,000 or more of Class A shares. However, if Delaware Distributors, L.P. (DDLP) paid your financial intermediary a commission on your purchase of $1,000,000 or more of Class A shares, for shares of Delaware Tax-Free Minnesota Fund or Delaware Tax-Free Minnesota High-Yield Fund prior to December 2, 2019, you will have to pay a limited contingent deferred sales charge (Limited CDSC) of 1.00% if you redeem these shares within the first year after your purchase and 0.50% if you redeem these shares within the second year, and for shares of Delaware Tax-Free Minnesota Intermediate Fund, you will have to pay a Limited CDSC of 0.75% if you redeem these shares within the first year after your purchase, unless a specific waiver of the Limited CDSC applies. If DDLP paid your financial intermediary a commission on your purchase of $250,000 or more of Class A shares, for shares of Delaware Tax-Free Minnesota Fund or Delaware Minnesota High-Yield Municipal Bond Fund on or after December 2, 2019, you will have to pay a Limited CDSC of 1.00% if you redeem these shares within the first 18 months after your purchase, unless a specific waiver of the Limited CDSC applies. Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services — Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related
74
to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Trust’s Board of Trustees (each, a Board, or collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities and private placements are valued at fair value.
Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the six months ended February 28, 2023, and for all open tax years (years ended August 31, 2019 – August 31, 2022), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the six months ended February 28, 2023, 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
75
Notes to financial statements
Delaware Funds by Macquarie® Minnesota municipal bond funds
1. Significant Accounting Policies (continued)
specific securities sold. Interest income is recorded on the accrual basis. Income and capital gain distributions from any investment companies (Underlying Funds) in which the Fund invests are recorded on the ex-dividend date. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.”
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee which is calculated daily and paid monthly, based on each Fund’s average daily net assets as follows:
| Delaware Tax-Free Minnesota Fund |
Delaware Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield Municipal Bond Fund |
||||||||||
| On the first $500 million | 0.5500 | % | 0.5000 | % | 0.5500 | % | ||||||
| On the next $500 million | 0.5000 | % | 0.4750 | % | 0.5000 | % | ||||||
| On the next $1.5 billion | 0.4500 | % | 0.4500 | % | 0.4500 | % | ||||||
| In excess of $2.5 billion | 0.4250 | % | 0.4250 | % | 0.4250 | % | ||||||
DMC has contractually agreed to waive all or a portion of its management fee and/or pay/reimburse expenses (excluding any distribution and service (12b-1) fees, acquired fund fees and expenses, taxes, interest, 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), in order to prevent total annual fund operating expenses from exceeding the following percentages of each Fund’s average daily net assets from September 1, 2021 through February 28, 2023.* These waivers and reimbursements may only be terminated by agreement
76
of DMC and each Fund. The waivers and reimbursements are accrued daily and received monthly.
| Fund | Operating expense limitation as a percentage of average daily net assets (per annum) December 29, 2021- December 29, 2022 |
Operating expense limitation as a percentage of average daily net assets (per annum) December 29, 2022- December 29, 2023 |
||||||
| Delaware Tax-Free Minnesota Fund | 0.60 | % | 0.59 | % | ||||
| Delaware Tax-Free Minnesota Intermediate Fund | 0.56 | % | 0.56 | % | ||||
| Delaware Minnesota High-Yield Municipal Bond Fund | 0.63 | % | 0.61 | % | ||||
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; 0.0025% of the next $45 billion; and 0.0015% of aggregate average daily net assets in excess of $90 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the six months ended February 28, 2023, each Fund paid for these services as follows:
| Fund | Fees | |||
| Delaware Tax-Free Minnesota Fund | $ | 16,879 | ||
| Delaware Tax-Free Minnesota Intermediate Fund | 6,072 | |||
| Delaware Minnesota High-Yield Municipal Bond Fund | 10,858 | |||
DIFSC is also the transfer agent and dividend disbursing agent of each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly, based on the aggregate daily net assets of the retail funds within the Delaware Funds at the following annual rates: 0.014% of the first $20 billion; 0.011% of the next $5 billion; 0.007% of the next $5 billion; 0.004% of the next $20 billion; 0.002% of the next $25 billion; and 0.0015% of average daily net assets in excess of $75 billion. The fees payable to DIFSC under the shareholder services agreement described above are allocated among all retail funds in the Delaware Funds on a relative NAV basis. These amounts are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” For the six months ended February 28, 2023, each Fund paid for these services as follows:
77
Notes to financial statements
Delaware Funds by Macquarie® Minnesota municipal bond funds
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
| Fund | Fees | |||
| Delaware Tax-Free Minnesota Fund | $ | 100,454 | ||
| Delaware Tax-Free Minnesota Intermediate Fund | 16,675 | |||
| Delaware Minnesota High-Yield Municipal Bond Fund | 47,541 | |||
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. The fees are calculated daily and paid monthly. Institutional Class shares do not pay a 12b-1 fee.
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended February 28, 2023, each Fund was charged for internal legal and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
| Fund | Fees | |||
| Delaware Tax-Free Minnesota Fund | $ | 6,008 | ||
| Delaware Tax-Free Minnesota Intermediate Fund | 897 | |||
| Delaware Minnesota High-Yield Municipal Bond Fund | 2,700 | |||
For the six months ended February 28, 2023, DDLP earned commissions on sales of Class A shares for each Fund as follows:
| Fund | Class A | |||
| Delaware Tax-Free Minnesota Fund | $ | 1,039 | ||
| Delaware Tax-Free Minnesota Intermediate Fund | 61 | |||
| Delaware Minnesota High-Yield Municipal Bond Fund | 811 | |||
78
For the six months ended February 28, 2023, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A and Class C shares, respectively, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
| Fund | Class A | Class C | ||||||
| Delaware Tax-Free Minnesota Fund | $ | 1,122 | $ | 2,070 | ||||
| Delaware Tax-Free Minnesota Intermediate Fund | — | 24 | ||||||
| Delaware Minnesota High-Yield Municipal Bond Fund | 2,991 | 1,331 | ||||||
Trustees’ fees include expenses accrued by each Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
Cross trades for the six months ended February 28, 2023, were executed by the Funds pursuant to procedures adopted by the Boards designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At its regularly scheduled meetings, the Boards review a report related to the Funds’ compliance with the procedures adopted by the Boards. Pursuant to these procedures, for the six months ended February 28, 2023, the following Funds engaged in Rule 17a-7 securities purchases and securities sales, which resulted in net gains or losses as follows:
| Purchases | Sales | Net realized gain (loss) | ||||||||||
| Delaware Tax-Free Minnesota Fund | $ | 3,035,052 | $ | — | $ | — | ||||||
| Delaware Tax-Free Minnesota Intermediate Fund | — | 934,995 | 197 | |||||||||
Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund did not have any realized gains (losses) during the six months ended February 28, 2023.
| * | The aggregate contractual waiver period covering this report is from December 29, 2021 through December 29, 2023. |
3. Investments
For the six months ended February 28, 2023, each Fund made purchases and sales of investment securities other than short-term investments as follows:
| Fund | Purchases | Sales | ||||||
| Delaware Tax-Free Minnesota Fund | $ | 85,732,594 | $ | 95,041,093 | ||||
| Delaware Tax-Free Minnesota Intermediate Fund | 11,395,128 | 17,767,294 | ||||||
| Delaware Minnesota High-Yield Municipal Bond Fund | 31,998,292 | 29,578,180 | ||||||
79
Notes to financial statements
Delaware Funds by Macquarie® Minnesota municipal bond funds
3. Investments (continued)
At February 28, 2023, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2023, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:
| Fund | Cost of investments |
Aggregate unrealized appreciation of investments |
Aggregate unrealized depreciation of investments |
Net unrealized appreciation (depreciation) of investments |
||||||||||||
| Delaware Tax-Free Minnesota Fund | $ | 526,737,876 | $ | 2,953,979 | $ | (27,264,863 | ) | $ | (24,310,884 | ) | ||||||
| Delaware Tax-Free Minnesota Intermediate Fund | 72,408,590 | 429,441 | (2,795,632 | ) | (2,366,191 | ) | ||||||||||
| Delaware Minnesota High-Yield Municipal Bond Fund | 224,446,879 | 1,205,712 | (15,964,357 | ) | (14,758,645 | ) | ||||||||||
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
| Level 1 − | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
| Level 2 − | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or 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, |
80
prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities)
| Level 3 − | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of February 28, 2022:
| Delaware Tax-Free Minnesota Fund | ||||
| Level 2 | ||||
| Securities | ||||
| Assets: | ||||
| Municipal Bonds | $ | 499,666,992 | ||
| Short-Term Investments | 2,760,000 | |||
| Total Value of Securities | $ | 502,426,992 | ||
| Delaware Tax-Free Minnesota Intermediate Fund | ||||
| Level 2 | ||||
| Securities | ||||
| Assets: | ||||
| Municipal Bonds | $ | 70,042,399 | ||
| Delaware Minnesota High-Yield Municipal Bond Fund | ||||
| Level 2 | ||||
| Securities | ||||
| Assets: | ||||
| Municipal Bonds | $ | 205,988,234 | ||
| Short-Term Investments | 3,700,000 | |||
| Total Value of Securities | $ | 209,688,234 | ||
During the six months ended February 28, 2023, there were no transfers into or out of Level 3 investments. Each Fund’s policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting period.
81
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 or end of the period in relation to each Fund’s net assets. During the six months ended February 28, 2023, there were no Level 3 investments.
4. Capital Shares
Transactions in capital shares were as follows:
| Delaware
Tax-Free Minnesota Fund |
Delaware
Tax-Free Minnesota Intermediate Fund |
Delaware Minnesota High-Yield
Municipal Bond Fund |
||||||||||||||||||||||
| Six months | Six months | Six months | ||||||||||||||||||||||
| ended | Year ended | ended | Year ended | ended | Year ended | |||||||||||||||||||
| 2/28/23 | 8/31/22 | 2/28/23 | 8/31/22 | 2/28/23 | 8/31/22 | |||||||||||||||||||
| Shares sold: | ||||||||||||||||||||||||
| Class A | 4,984,112 | 6,675,584 | 960,858 | 459,040 | 2,060,593 | 1,570,364 | ||||||||||||||||||
| Class C | 92,032 | 158,306 | 22,080 | 33,463 | 129,860 | 243,560 | ||||||||||||||||||
| Institutional Class | 8,700,462 | 10,473,884 | 1,005,802 | 1,633,157 | 4,132,467 | 5,317,085 | ||||||||||||||||||
| Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||||||||
| Class A | 352,529 | 585,945 | 56,942 | 102,035 | 150,661 | 242,222 | ||||||||||||||||||
| Class C | 10,556 | 18,503 | 1,820 | 3,305 | 12,887 | 21,551 | ||||||||||||||||||
| Institutional Class | 176,905 | 310,784 | 32,516 | 50,147 | 172,858 | 274,448 | ||||||||||||||||||
| 14,316,596 | 18,223,006 | 2,080,018 | 2,281,147 | 6,659,326 | 7,669,230 | |||||||||||||||||||
| Shares redeemed: | ||||||||||||||||||||||||
| Class A | (6,757,017 | ) | (8,915,827 | ) | (1,064,564 | ) | (1,126,691 | ) | (1,979,348 | ) | (1,961,685 | ) | ||||||||||||
| Class C | (318,573 | ) | (391,496 | ) | (50,590 | ) | (82,500 | ) | (242,118 | ) | (388,928 | ) | ||||||||||||
| Institutional Class | (9,233,447 | ) | (9,407,543 | ) | (1,660,065 | ) | (1,271,288 | ) | (4,035,803 | ) | (4,009,249 | ) | ||||||||||||
| (16,309,037 | ) | (18,714,866 | ) | (2,775,219 | ) | (2,480,479 | ) | (6,257,269 | ) | (6,359,862 | ) | |||||||||||||
| Net increase (decrease) | (1,992,441 | ) | (491,860 | ) | (695,201 | ) | (199,332 | ) | 402,057 | 1,309,368 | ||||||||||||||
82
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the table above and on the “Statements of changes in net assets.” For the six months ended February 28, 2023 and the year ended August 31, 2022, each Fund had the following exchange transactions:
| Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||||||
| Institutional | Institutional | |||||||||||||||||||||||
| Class A | Class C | Class | Class A | Class | ||||||||||||||||||||
| Shares | Shares | Shares | Shares | Shares | Value | |||||||||||||||||||
| Delaware Tax-Free Minnesota Fund | ||||||||||||||||||||||||
| Six months ended | ||||||||||||||||||||||||
| 2/28/23 | 54,357 | 17,040 | — | 7,353 | 64,135 | $ | 787,580 | |||||||||||||||||
| Year ended | ||||||||||||||||||||||||
| 8/31/22 | 35,428 | 12,655 | — | 12,701 | 35,432 | 592,244 | ||||||||||||||||||
| Delaware Tax-Free Minnesota Intermediate Fund | ||||||||||||||||||||||||
| Six months ended | ||||||||||||||||||||||||
| 2/28/23 | 766 | 582 | — | 584 | 766 | 13,522 | ||||||||||||||||||
| Year ended | ||||||||||||||||||||||||
| 8/31/22 | 10,192 | 737 | — | 738 | 10,192 | 117,346 | ||||||||||||||||||
| Delaware Minnesota High-Yield Municipal Bond Fund | ||||||||||||||||||||||||
| Six months ended | ||||||||||||||||||||||||
| 2/28/23 | 226 | 1,667 | 39 | 1,709 | 226 | 18,703 | ||||||||||||||||||
| Year ended | ||||||||||||||||||||||||
| 8/31/22 | 629 | 16,920 | — | 16,961 | 629 | 195,261 | ||||||||||||||||||
5. Line of Credit
Each Fund, along with certain other funds in the Delaware Funds (Participants), was a participant in a $355,000,000 revolving line of credit (Agreement) intended to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the Agreement, the Participants were charged an annual commitment fee of 0.15%, 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 October 31, 2022.
On October 31, 2022, each Fund, along with the other Participants, entered into an amendment to the Agreement for a $355,000,000 revolving line of credit to be used as described above. It operates in substantially the same manner as the original Agreement. Under the amendment to the Agreement, the Participants are charged an annual commitment fee of 0.15%, which is allocated across the Participants based on a weighted average of the respective net assets of each Participant. The line of credit available under the Agreement expires on October 30, 2023.
83
Notes to financial statements
Delaware Funds by Macquarie® Minnesota municipal bond funds
5. Line of Credit (continued)
Each Fund had no amounts outstanding as of February 28, 2023, or at any time during the period then ended.
6. Geographic, Credit, and Market Risks
An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and has now been detected globally. This coronavirus has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) and other interbank offered rate (collectively, IBORs) could have adverse impacts on financial instruments that reference LIBOR (or the corresponding IBOR). The abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR. The use of alternative reference rate products may impact investment strategy performance. These risks may also apply with respect to changes in connection with other IBORs, such as the euro overnight index average (EONIA), which are also the subject of recent reform.
The Funds concentrate their investments in securities issued by municipalities, 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.
Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s Financial Services LLC (S&P), and lower than Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
84
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.
From time to time, each Fund may invest in industrial development bonds (IDBs) or pollution control revenue (PCR) bonds that are issued by a conduit authority on behalf of a corporation that is either foreign owned or has international affiliates or operations. While the bonds may be issued to finance a facility located in the United States, the bonds may be secured by a payment obligation or guaranty of the corporation. To the extent each Fund invests in such securities, that Fund may be exposed to risks associated with international investments. The risk of international investments not ordinarily associated with US investments includes fluctuation in currency values, differences in accounting principles, and/or economic or political instability in other nations.
Each Fund may invest in advance refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” Advance refunded bonds are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest-bearing debt securities, which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered “pre-refunded” when the refunding issuer’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under
85
Notes to financial statements
Delaware Funds by Macquarie® Minnesota municipal bond funds
6. Geographic, Credit, and Market Risks (continued)
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 Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedules of investments.”
7. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.
8. Recent Accounting Pronouncements
In March 2020, FASB issued an Accounting Standards Update (ASU), ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. In March 2021, the administrator for LIBOR announced the extension of the publication of a majority of the USD LIBOR settings to June 30, 2023. On December 21, 2022, FASB issued ASU 2022-06 to defer the sunset date of Accounting Standards Codification Topic 848 until December 31, 2024. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management is currently evaluating ASU 2020-04 and ASU 2022-06, but does not believe there will be a material impact.
9. New Regulatory Pronouncement
In October 2022, the Securities and Exchange Commission (SEC) adopted a rule and form amendments relating to tailored shareholder reports for mutual funds and exchange-traded funds (ETFs); and fee information in investment company advertisements. The rule and form amendments will require mutual funds and ETFs to transmit streamlined shareholder reports that highlight key information to investors. The rule amendments will require that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective in January 2023 and there is an 18-month transition period after the effective date of the amendment with a compliance date of July 2024.
86
10. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in the Funds’ financial statements.
87
Other Fund information (Unaudited)
Delaware Funds by Macquarie® Minnesota municipal bond funds
Form N-PORT and proxy voting information
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT. Each Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedule of investments included in the Funds’ most recent Form N-PORT are available without charge on the Funds’ website at delawarefunds.com/literature.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.
88
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)) and provide reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits
| (a) | (1) Code of Ethics |
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
VOYAGEUR TAX FREE FUNDS
| /s/SHAWN K. LYTLE | ||
| By: | Shawn K. Lytle | |
| Title: | President and Chief Executive Officer | |
| Date: | April 28, 2023 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| /s/SHAWN K. LYTLE | ||
| By: | Shawn K. Lytle | |
| Title: | President and Chief Executive Officer | |
| Date: | April 28, 2023 | |
| /s/RICHARD SALUS | ||
| By: | Richard Salus | |
| Title: | Chief Financial Officer | |
| Date: | April 28, 2023 | |